Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — FY2016 Earnings Presentation
38 slides from Ainsworth Game Technology's earnings presentation, Aug 23, 2016
Slide 1: FY16 Annual Results Announcement
For personal use only FY16 Annual Results Announcement Ainsworth Game Technology Limited www.agtslots.com.au
Slide 2: Disclaimer
Disclaimer For personal use only 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 presentati
Slide 3: Historical Financial Performance
Continuing strong growth in International revenue and profitability, predominately in the Americas For personal use only Historical Financial Performance *Note: NPAT for H2 FY11 and H1 FY12 also excludes one off recognition of $8.5 million and $21.8 million in deferred assets. 3
Slide 4: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 4 4
Slide 5: Key Highlights
Key Highlights Continued execution of a clear strategy: A more diversified Ainsworth is developing with an improving For personal use only quality of recurring earnings and strong growth and profitability in international markets - Stable FY16 results: • Total sales revenue of $285.5m, +19% • Intern
Slide 6: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 6
Slide 7: Profit & Loss Summary
Profit & Loss Summary For personal use only 12 months 12 months • Strong international sales growth A$m Change Change (%) ended ended (+38% v pcp) offsetting challenging (%) 30-Jun-2016 30-Jun-2015 domestic market (-12% pcp) Domestic revenue 81.5 93.0 ▼ (12%) • Gross Profit increased by 13% Internat
Slide 8: Results Adjusted for Currency Gains
Results Adjusted for Currency Gains For personal use only 12 months 12 months Change A$m ended ended Movement (%) 30-Jun-2016 30-Jun-2015 PBT 75.1 94.4 ▼ (20%) Currency gains (before tax) (4.7) (25.6) ▼ (82%) Adjusted PBT 70.4 68.8 ▲ 2% NPAT 55.7 70.4 ▼ (21%) Currency gains (after tax)(1) (3.3) (17.
Slide 9: Results adjusted for currency gains and significant items
Results adjusted for currency gains and significant items outside ordinary business activities For personal use only 12 months 12 months Variance A$m ended ended % 30-Jun-2016 30-Jun-2015 Reconciliation: Profit before tax 75.1 94.4 (20%) Net interest (2.3) (3.1) (26%) Depreciation and amortisation 2
Slide 10: Operating Costs
Operating Costs FY16 FY15 Variance For personal use only Sales, service and marketing 52.0 38.9 34% R&D 28.6 25.4 13% Administration 19.8 18.6 6% Total Operating costs 100.4 82.9 21% • Increase in Sales, service and marketing primarily due to: - Nova expenses as part of the integration to Ainsworth
Slide 11: Net Profit Bridge
Net Profit Bridge For personal use only (1) Calculation of after tax currency gains; FY15 ($25.6m x 0.7 = $17.9m), FY16 ($4.7m x 0.7 = $3.3m) • $20.9m forex represents a decrease in foreign currency gains in FY16 of $4.7m (versus $25.6m pcp) • $6.6m increase in D&A reflects rise in number of machine
Slide 12: Ainsworth at a Glance
Ainsworth at a Glance For personal use only 12
Slide 13: Balance Sheet
Balance Sheet 12 months 12 months A$m ended ended For personal use only • 18% Return on Equity. 17% return 30-Jun-2016 30-Jun-2015 Cash 26.4 26.1 on equity based on normalised Term deposits - 15.2 PAT (excludes foreign currency gains - 19% pcp) Receivables 118.7 110.3 Other Current Assets 63.0 69.6
Slide 14: Cashflow Statement
Cashflow Statement 12 months 12 months For personal use only • Increase in Net Cash from A$m ended ended Change 30-Jun-2016 30-Jun-2015 Operations to $52.9m reflects effective management of working Net Cash from Operating Activities 52.9 20.2 32.7 capital cash outflow Interest received 3.0 3.4 (0.4)
Slide 15: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 15
Slide 16: Segment Results - Australia
Segment Results - Australia For personal use only • Challenging period for volume 12 months 12 months Change and revenue growth given highly A$m ended ended Change (%) (%) competitive market conditions 30-Jun-2016 30-Jun-2015 and minimal corporate and Revenue 81.5 93.0 ▼ (12%) casino sales in FY16 S
Slide 17: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 17
Slide 18: Segment Results – Americas (North America)
Segment Results – Americas For personal use only North America – strong growth in North America sales, share and participation: 12 months 12 months Change A$m ended ended Change (%) • 34% increase in revenue 30-Jun-2016 30-Jun-2015 (%) • Continuing growth in existing Revenue 111.0 82.7 ▲ 34% markets
Slide 19: Nova Technologies – Entry into US Class II Market
Nova Technologies – Entry into US Class II Market • Completed acquisition of Nova Technologies, LLC, on January 14, 2016 For personal use only • Nova is a leading Class II US gaming technology company with 21 FTEs • Provides a strong complementary fit with Ainsworth • At the time of acquisition Nova
Slide 20: North America Market Penetration by Total Placements
North America Market Penetration by Total Placements For personal use only 20
Slide 21: Continued Development of Top Performing Brands in North America
Continued Development of Top Performing Brands in North America For personal use only Top Performing Brands • All brands listed are performing at an average index of 1.0% to 2.2% of house average 21
Slide 22: Full Integration of Class II into Popular Ainsworth Hardware
Full Integration of Class II into Popular Ainsworth Hardware For personal use only ATLAS-100 A560N-H A560N-L A560N-S32 All cabinets above are currently available in Class II markets 22
Slide 23: Significant Development of Class II Titles
Significant Development of Class II Titles For personal use only 23
Slide 24: Segment Results – Americas (Latin America)
Segment Results – Americas For personal use only Strong product acceptance and Latin America growth from jurisdictions across the 12 months 12 months Change A$m ended ended Change (%) region: 30-Jun-2016 30-Jun-2015 (%) • 32% increase in units sold Revenue 74.8 50.3 ▲ 49% • Mexico is largest market
Slide 25: Continued Development of Top Performing Brands in Latin America
Continued Development of Top Performing Brands in Latin America For personal use only Top Performing Brands • All brands listed are performing at an average index of 1.2% to 2.8% of house average 25
Slide 26: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 26
Slide 27: Segment Results – Rest of the World
Segment Results – Rest of the World For personal use only • Increased sales contribution from 12 months 12 months Change Europe, NZ and South Africa (new A$m ended ended Change (%) (%) 30-Jun-2016 30-Jun-2015 market) • FY16 benefited from a significant Revenue 18.2 14.6 ▲ 25% shipment to SkyCity Auc
Slide 28: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 28
Slide 29: Gaming Products
For personal use only 29 Gaming Products 29
Slide 30: Product Review
Product Review Australia • Strengthened our legacy product offering into New South Wales and Queensland across a number of established brands For personal use only such as Double Shot™, Quad Shot™ & now Triple Shot™ • Releases new concept Win Storm™ in key markets and developing Mega Shot™ concept a
Slide 31: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 31
Slide 32: Regulatory Update
Regulatory Update For personal use only Continuing strategy to deliver new jurisdictions based on detailed market assessment of commercial opportunities. From 1 July 2015 to current, the AGT group has secured the following new gaming licenses: Bahamas New Mexico Delaware Nova Scotia Louisiana (India
Slide 33: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 33
Slide 34: Online
Online Ainsworth’s interactive strategy is focused on building revenue growth via the distribution of its best For personal use only performing land based and innovative SL game titles both in real money gaming and social gaming. In addition, Ainsworth has capitalised on opportunities to grow the so
Slide 35: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 35
Slide 36: Novomatic Update
Novomatic Update For personal use only • On the 27th June 2016, shareholder approval was granted for Mr LH Ainsworth (including entities controlled by him) to sell 172.1m of his ordinary shares to Novomatic AG. The licensing process is on-going with other regulatory approvals expected to be complete
Slide 37: For personal use only
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Australia 4. Segment Results - Americas 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Novomatic Update 10. Outlook and Questions 37
Slide 38: Outlook
Outlook Continued execution of a clear strategy: A more diversified Ainsworth is developing with an improving For personal use only quality of recurring earnings and strong growth and profitability in international markets. Stable FY16 results: Continued strong growth in international businesses: no
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