Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — Investor Presentation (March 2021)
33 slides from Ainsworth Game Technology's investor presentation, Mar 30, 2021
Slide 1: Results for Half Year Ended 31 December 2020 – Investor Presentation
Ainsworth Game Technology Ltd ABN 37 068 516 665 10 Holker Street, Newington NSW 2127 Tel: +61 2 9739 8000 www.agtslots.com 30 March 2021 ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 ELECTRONIC LODGEMENT Results for Half Year Ended 31 December 2020 – Investor Pres
Slide 2: H1FY21 Investor Presentation
H1FY21 INVESTOR PRESENTATION Ainsworth Game Technology Limited ABN 37 068 516 665 30 March 2021
Slide 3: Disclaimer
Disclaimer IMPORTANT NOTICE This presentation has been prepared by Ainsworth Game Technology Limited ACN 068 516 665 (AGT) in good faith. No express or implied warranty is given as to the accuracy or completeness of the information in this document or the accompanying presentation. All statutory rep
Slide 4: Agenda
AGENDA 1. Results Summary 2. Consolidated Results 3. Segment Performance 4. Land Based Gaming Products 5. Online 6. Outlook
Slide 5: Results Summary
Results Summary • Final reviewed results are consistent with pre-announced results on 25 February 2021 without any material revisions. • H1 FY21 revenue $72.1m increased 71% compared to $42.1m in H2 FY20, declined 33% compared to $107.3m in prior corresponding period (pcp). ✓ International sales con
Slide 6: Results Summary (cont.)
Results Summary (cont.) • Dividend continues to be suspended to ensure strong liquidity is maintained and while market is still recovering from the effects of COVID-19. • Recurring revenues account for 25% of group total compared to 23% in pcp: ✓ 7,001 units under gaming operations at 31 December 20
Slide 7: Gaming Operations and International Sales Contribution
Gaming Operations and International Sales Contribution AINSWORTH GAME TECHNOLOGY LIMITED 6 66
Slide 8: Consolidated Results
CONSOLIDATED RESULTS
Slide 9: Profit & Loss Summary
Profit & Loss Summary • Revenue drop predominately impacted by COVID-19 that adversely hit our markets. 6 months to 6 months to A$m Change (%) 31 Dec 2020 31 Dec 2019 • Maintained domestic revenue compared to pcp. ✓ Increase of 118% on $8.8m in H2FY20; ✓ Increased sales in NSW, QLD & NT, and Domesti
Slide 10: Results adjusted for currency movement and one-off items
Results adjusted for currency movement and one-off items 6 months to 6 months to A$m 31 Dec 2020 31 Dec 2019 Loss Before Tax (56.6) (4.1) Currency losses (before tax) 13.4 0.3 Legal costs and settlement claims (before tax) 0.0 3.6 Impairment losses (before tax) 29.2 0.6 Adjusted For Currency and One
Slide 11: Reconciliation: Loss Before Tax to EBITDA & Underlying EBITDA
Reconciliation: Loss Before Tax to EBITDA & Underlying EBITDA 6 months to 6 months to Change A$m 31 Dec 2020 31 Dec 2019 % Reconciliation: Loss Before Tax (56.6) (4.1) 1,280% Net interest 0.7 (0.5) (240%) Depreciation and amortisation 19.1 19.2 (0.5%) Reported EBITDA (36.8) 14.6 (352%) Foreign curre
Slide 12: Operating Costs
Operating Costs 6 months to 31 Dec 2020 6 months to 6 months to Change A$m constant currency basis 31 Dec 2020 31 Dec 2019 (%) COGS 35.2 34.3 41.3 (17%) Sales, service and marketing ('SSM') 27.1 25.9 33.3 (22%) R&D 17.0 16.6 21.4 (22%) Administration 9.6 9.3 11.6 (20%) Total Operating costs 78.4 75.
Slide 13: Staff Headcount
Staff Headcount Australia and Rest of the World 6 months to 6 months to # Staff 31 Dec 2020 31 Dec 2019 Sales 31 32 Service 59 72 Production 28 32 Administration 26 37 R&D 115 132 Total Staff Numbers - Australia & Rest of the World 259 305 Americas 6 months to 6 months to # Staff 31 Dec 2020 31 Dec
Slide 14: Net Profit Bridge
Net Profit Bridge • Revenue decrease due to closures of gaming venues in this period. • $14.4m decrease in overheads as a direct result of overhead reduction initiatives. • $24.9m increase in other expenses relates to non-cash impairment charges of trade receivables and LATAM CGU. • $39.2m currency
Slide 15: Balance Sheet
Balance Sheet As at 31 Dec As at 30 Jun A$m 2020 2020 As at As at Debt Ratios 31 Dec 2020 30 Jun 2020 Total assets 389.4 465.5 Debt Ratio (Total Liabilities/Total Assets) 25.73% 23.83% Net assets 289.2 354.6 Debt to Equity Ratio (Total Liabilities/Total Equity) 34.65% 31.29% Total debt 54.9 60.4 Cas
Slide 16: Cash Flow Statement
Cash Flow Statement 6 months to 6 months to A$m Change 31 Dec 2020 31 Dec 2019 • Decrease in net cash from operating activities resulting from reduction in profitability and suspension on Net cash from operating activities 2.4 17.9 (15.5) payments to support customers. Proceeds from sale of property
Slide 17: Segment Performance
SEGMENT PERFORMANCE
Slide 18: North America
North America • Maintained steady profit margin at 30% despite 6 months to 6 months to A$m Change (%) significate impact of casino closures amid COVID-19 31 Dec 2020 31 Dec 2019 pandemic. Revenue 41.0 50.7 (19%) Gross Profit 26.1 35.4 (26%) • Revenue increased 93% in H1 FY21 compared to the $21.3m r
Slide 19: MTD Gaming Acquisition
MTD Gaming Acquisition • Completed the asset acquisition of MTD Gaming in H2FY20 with an immediate and positive impact to EBITDA. • Complementary product line with premium performing Poker, Keno, and Video Reel content. • Provides access to Multi-Game and Video Lottery Terminal markets. • Expands ou
Slide 20: Latin America
Latin America • Revenue’s reduction of 85% compared to pcp due to 6 months to 6 months to A$m Change (%) severe impacts of high COVID-19 transmission rates 31 Dec 2020 31 Dec 2019 resulting in further government mandated closures Revenue 4.8 32.8 (85%) and access restrictions to customers’ venues in
Slide 21: Australia
Australia • Improved performance from new hardware and A$m 6 months to 6 months to Change (%) recently released game titles. 31 Dec 2020 31 Dec 2019 ✓ Maintained consistent revenue compared to the Revenue 19.2 19.5 (2%) pcp, and increased 118% compared to H2 Gross Profit 5.3 7.1 (25%) FY20 of $8.8m.
Slide 22: Rest of the World
Rest of the World 6 months to 6 months to • Increased revenue, profit and profit margin. A$m Change (%) 31 Dec 2020 31 Dec 2019 • Continuous challenging times within the Asian region Revenue 7.1 4.3 65% due to COVID-19 and border closures. Gross Profit 3.8 2.8 36% Segment EBITDA 3.5 2.4 46% • Increa
Slide 23: Land Based Gaming Products
LAND BASED GAMING PRODUCTS 22
Slide 24: Key Highlights – Americas
Key Highlights Americas • Growth of Class II HHR products with new deployments in Alabama, Virginia and Kentucky. • Successful deployment of A-STAR Curve cabinet in major North American markets. • Strong A-STAR performance in multiple gaming segments. ✓ High Denomination 3 Reel Classic games – “Quic
Slide 25: Key Highlights – Australasia
Key Highlights Australasia • Successful placements of A-STAR Dual screen cabinet is most major markets across Australia and New-Zealand. • A-STAR release of new brands “Rise Up” & “Jackpot Coin” in Australian market. • Strong New Zealand installs for “Rise Up”. • Overall stronger Game Performance hi
Slide 26: H2 FY21 Global Pipeline
H2 FY21 Global Pipeline • H2 will see key deployments of: ✓ Further rollout of “Gambler’s Gold” in North American Class III Poker and Keno segment; ✓ “Pac Man Wheel” in the North American premium lease segment; ✓ Further installs of “Electric Cash Originals” across EU and LATAM markets; ✓ High antic
Slide 27: Online
ONLINE
Slide 28: B2B Real Money Gaming (RMG) Europe
B2B Real Money Gaming (RMG) Europe EUROPEAN GAME DISTRIBUTION • Ainsworth Interactive has signed new partnership deals and PARTNERS increased our European game distribution with B2B content aggregators by 30%. • We have developed and certified 85 online games throughout Europe for our platform partn
Slide 29: B2B Real Money Gaming (RMG) USA
B2B Real Money Gaming (RMG) USA NEW JERSEY MICHIGAN CASINO PARTNERS CASINO PARTNERS • Ainsworth Interactive has now launched our digital slot games with seven New Jersey online casinos and operators. We also look to expand with other major corporate casino operators in New Jersey for H2 FY21. • Curr
Slide 30: B2B Social Casino Business
B2B Social Casino Business ZYNGA’s Hit It Rich • Ainsworth has 17 greatest hits games launched on Zynga’s Hit it Rich social casino. • 6 new land-based games have been developed and completed by the new Ainsworth’s social development team in H1 FY21 bringing the total game library to 23 games. NOVOM
Slide 31: Outlook
OUTLOOK [1825000 | $50.00
Slide 32: Outlook / Conclusion
Outlook / Conclusion Focus has been on the Group’s liquidity and preserving shareholders’ funds. • The full magnitude and adverse impact of the pandemic and Government response remains flexible, but the following steps are undertaken to ensure that the Group could endure a protracted downturn if nec
Slide 33: Ainsworth Game Technology
AINSWORTH GAME TECHNOLOGY 10 Holker St, Newington NSW www.agtslots.com
Ainsworth Game Technology — Investor Presentation (March 2021) on 6ix