Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — FY2020 Earnings Presentation
34 slides from Ainsworth Game Technology's earnings presentation, Sep 23, 2020
Slide 1: ASX lodgement letter: Annual Results Presentation
Ainsworth Game Technology Ltd ABN 37 068 516 665 10 Holker Street, Newington NSW 2127 Tel: +61 2 9739 8000 www.agtslots.com.au 23 September 2020 ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 ELECTRONIC LODGEMENT Results for Full Year Ended 30 June 2020 – Annual Res
Slide 2: FY20 Annual Results Presentation
FY20 ANNUAL RESULTS © PRESENTATION _ Ainsworth Game Technology Limited
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. Gaming Products 5. Online 6. Outlook
Slide 5: Results Summary
Results Summary • FY20 revenue down 36%, $149.4m compared to $234.3m vs pcp. o Outright and gaming operation revenue adversely impacted by closure of customers’ venues in H2. o H2 revenue of $42.1m compared to $116.3m in pcp, -64%. o Online revenue up by 10% . • Full year positive underlying EBITDA
Slide 6: Gaming Operations and International Sales Contribution
Gaming Operations and International Sales Contribution AINSWORTH GAME TECHNOLOGY LIMITED 5 5
Slide 7: Consolidated Results
CONSOLIDATED RESULTS
Slide 8: Profit & Loss Summary
Profit & Loss Summary 12 months to 12 months to AASB 16 12 months to • Revenue drop predominately A$m 30-Jun-2020 Leases 30-Jun-2020 30-Jun-2019 Change (%) impacted by COVID-19 that Statutory Underlying adversely hit our markets in Q4. Domestic revenue 28.3 28.3 36.1 (22%) International revenue 121.
Slide 9: Results adjusted for currency movement
Results adjusted for currency movement 12 months to 12 months to Change A$m 30-Jun-2020 30-Jun-2019 (%) (Loss) / Profit before tax (48.8) 14.7 (432%) Currency gains before tax (1.2) (6.0) (80%) Adjusted For Currency (Loss) / Profit Before Tax (50.0) 8.7 (675%) 12 months to 12 months to Change A$m 30
Slide 10: Reconciliation: (Loss) / Profit Before Tax to EBITDA & Underlying EBITDA
Reconciliation: (Loss) / Profit Before Tax to EBITDA & Underlying EBITDA 12 months to 12 months to AASB 16 12 months to Change A$m 30-Jun-2020 30-Jun-2020 Leases 30-Jun-2019 % Statutory Underlying Reconciliation: (Loss) / Profit Before Tax (48.8) 0.6 (48.2) 14.7 (428%) Net interest (0.2) (0.9) (1.1)
Slide 11: Operating Costs
Operating Costs 12 months to 30-Jun-20 Change 12 months to 30-Jun-20 12 months to 30-Jun-19 constant currency basis (%) A$m Sales, service and marketing ('SSM') 56.2 59.3 64.9 (9%) R&D 40.1 41.2 40.4 2% Administration 21.5 22.2 25.0 (11%) Total Operating costs 117.8 122.7 130.3 (6%) SSM Costs • Decr
Slide 12: Staff Headcount
Staff Headcount Australia and Rest of the World # Staff FY20 FY19 Sales 32 35 Service 67 76 Production 28 31 Administration 34 38 R&D 127 135 Total Staff Numbers - Australia & Rest of 288 315 the World Americas # Staff FY20 FY19 Sales 23 33 Service 48 55 Production 61 77 Administration 40 49 R&D 47
Slide 13: Net Profit Bridge
Net Profit Bridge • Revenue decrease due to closures of gaming venues in H2 with Q4 typically representing our largest opportunity for revenue realisation. • $35.4m and $14.3m decrease in cogs and overheads respectively as a direct result of lower sales and overhead reduction initiatives. • Included
Slide 14: Balance Sheet
Balance Sheet 12 months to 12 months to AASB 16 12 months to A$m 30-Jun-2020 30-Jun-2020 Leases 30-Jun-2019 Statutory Underlying Total assets 465.5 (15.8) 449.7 483.3 Net assets 354.6 0.6 355.2 393.5 Total debt 60.4 (16.4) 44.0 55.4 12 months to 12 months to 30-Jun-2020 12 months to Debt Ratios 30-J
Slide 15: Cash Flow Statement
Cash Flow Statement 12 months 12 months 12 months to 30-Jun- AASB 16 to 30-Jun- A$m to 30-Jun- Change • Decrease in net cash operating 2020 Leases 2020 2019 Statutory Underlying activities resulting from reduction in profitability and suspension on payments to Net cash from operating activities 16.7
Slide 16: Segment Performance
SEGMENT PERFORMANCE
Slide 17: North America
North America • 35% profit margin despite significant impact of 12 months to 12 months to A$m Change (%) casino closures in the fourth quarter. 30-Jun-2020 30-Jun-2019 Revenue 72.1 114.0 (37%) • Maintained strong ASP throughout the period. Gross Profit 50.0 74.7 (33%) Segment EBITDA 36.8 57.4 (36%)
Slide 18: 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 19: Latin America
Latin America • Maintained segment profitability despite 12 months to 12 months to A$m Change (%) impact of COVID-19. 30-Jun-2020 30-Jun-2019 Revenue 42.0 72.7 (42%) • Reduced operating costs as a result of the Gross Profit 25.8 43.7 (41%) pandemic. Segment EBITDA 23.8 29.1 (18%) Segment Profit 2.3
Slide 20: Australia
Australia • COVID-19 contributed to revenue decline: 12 months to 12 months to A$m Change (%) 30-Jun-2020 30-Jun-2019 o Temporary closures of hotels and Revenue 28.3 36.1 (22%) clubs from 23 March 2020 with national reopening in June (except Gross Profit 9.4 14.0 (33%) Victoria) under social distanc
Slide 21: Rest Of World
Rest Of World • Challenging times within this region with 12 months to 12 months to A$m Change (%) 30-Jun-2020 30-Jun-2019 revenue -39% with lower contribution Revenue 7.0 11.5 (39%) from Europe and Asia. Gross Profit 5.2 7.5 (31%) • Asia market has been adversely Segment EBITDA 3.2 7.1 (55%) impact
Slide 22: Gaming Products
GAMING | PRODUCTS
Slide 23: Key Highlights
Key Highlights • Ainsworth game development and approval continued throughout COVID-19 interruptions – providing strong future portfolio pipeline. • Successful launch and deployment of new A-StarTM dual cabinet with Pan ChangTM game series in Australian markets prior to COVID-19 interruptions. • A-S
Slide 24: Key Highlights
Key Highlights • Launch of new A-StarTM Curve cabinet in major North American markets with a series of innovative new titles. • North American continued success of the high denomination segment with introduction of the Quick SpinTM portfolio, showing excellent performance of Super Charged 7’s Classi
Slide 25: Development
Development • Refocused internal game development and design to produce class leading product solutions, ranging from strong legacy content to innovative new ideas that will refresh our portfolio and provide a competitive point of difference. • Working with several external content providers to incr
Slide 26: FY21 Global Pipeline
FY21 Global Pipeline • Well positioned with strengthening of portfolio content across Class III, Class II and online segments. • Multi-channel approach for content commercialisation to maximise synergies. Content Class III Class II (HHR,VLT) Proprietary Digital Third Party Digital • An innovative ra
Slide 27: MTD Gaming
MTD Gaming • North American integration of MTD gaming providing portfolio expansion in Poker and Keno player segments. • Top performing Gambler’s Gold Multi-game pack on Apollo cabinet rollout to continue to major Class III markets. • GLI Certification nearing completion for Nevada and California ma
Slide 28: Online
ONLINE —
Slide 29: B2B Real Money Gaming (RMG)
B2B Real Money Gaming (RMG) • Ainsworth Interactive developed and certified 20 new online games for RMG European operators and certified 40 online games in New Jersey for the US RMG market in FY20. • Ainsworth launched our US based remote gaming server (RGS) which was approved by the New Jersey Divi
Slide 30: B2B Social Casino Business
B2B Social Casino Business • Ainsworth has licensed land-based slot content to 2 of the top 10 performing social casino apps in the world: 1. Zynga’s Hit It Rich. 2. Playstudio’s MyVegas.com. • Ainsworth and Zynga have extended our partnership an additional 4 years with 6 new exclusive titles per ye
Slide 31: B2C Online Casino Operator - Mexico
B2C Online Casino Operator - Mexico • Mustang Money has been operating now for seventeen months and focused on driving marketing campaigns targeting: 1. New player acquisition. 2. Player retention. 3. Recurring deposits and driving increased gameplay. • Currently Mustang Money offers over 600 unique
Slide 32: Outlook
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Slide 33: Outlook / Conclusion
Outlook / Conclusion Focus has inevitably 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 down
Slide 34: Ainsworth Game Technology
AINSWORTH GAME TECHNOLOGY 10 Holker St, Newington NSW www.agtslots.com
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