Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — H1 FY22 Earnings Presentation
31 slides from Ainsworth Game Technology's earnings presentation, Feb 23, 2022
Slide 1: H1 FY22 Investor Presentation
H1 FY22 INVESTOR PRESENTATION Ainsworth Game Technology Limited ABN 37 068 516 665 ASX Code: AGI 23 February 2022
Slide 2: 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 3: Agenda
AGENDA 1. Results Summary 2. Consolidated Results 3. Segment Performance 4. Land Based Gaming Products 5. Online 6. Outlook
Slide 4: Results Summary
RESULTS SUMMARY HH i a Li i] \ i
Slide 5: Results Summary
Results Summary • Improved performance compared to H1 FY21 and H2 FY21. Current period Current period H1 FY22 H1 FY21 vs H2 FY21 vs In millions of AUD H1 FY21 H2 FY21 Revenue 100.7 72.1 28.6 87.4 13.3 Underlying EBITDA 20.7 1.1 19.6 14.4 6.3 Impairment losses (before tax) - (29.2) 29.2 (12.5) 12.5 P
Slide 6: Gaming Operations and International Sales Contribution
Gaming Operations and International Sales Contribution AINSWORTH GAME TECHNOLOGY LIMITED 6
Slide 7: Consolidated Results
CONSOLIDATED RESULTS
Slide 8: Profit & Loss Summary
Profit & Loss Summary Current period Current period H1 FY22 H1 FY21 vs H2 FY21 vs In millions of AUD H1 FY21 H2 FY21 Domestic revenue 16.7 19.2 (2.5) 19.8 (3.1) International revenue 84.0 52.9 31.1 67.6 16.4 Total revenue 100.7 72.1 28.6 87.4 13.3 Gross profit 63.0 37.8 25.2 51.8 11.2 EBITDA 24.6 (3
Slide 9: Results Adjusted For Currency Movement and One-off Items
Results Adjusted For Currency Movement and One-off Items Current period Current period H1 FY22 H1 FY21 vs H2 FY21 vs In millions of AUD H1 FY21 H2 FY21 Profit / (Loss) Before Tax 13.9 (56.6) 70.5 (2.6) 16.5 Currency (gains) / losses (3.5) 13.4 (16.9) (1.9) (1.6) Impairment losses - 29.2 (29.2) 12.5
Slide 10: Reconciliation: Profit / (Loss) Before Tax to EBITDA & Underlying EBITDA
Reconciliation: Profit / (Loss) Before Tax to EBITDA & Underlying EBITDA Current period Current period H1 FY22 H1 FY21 vs H2 FY21 vs In millions of AUD H1 FY21 H2 FY21 Profit / (Loss) Before Tax 13.9 (56.6) 70.5 (2.6) 16.5 Net interest (income) / expense (0.1) 0.7 (0.8) 0.6 (0.7) Depreciation and am
Slide 11: Operating Costs
Operating Costs H1 FY22 Current period H1 FY22 Current period H1 FY22 H1 FY21 at pcp currency vs H2 FY21 at prior half Vs In millions of AUD basis H1 FY21 currency basis H2 FY21 COGS 37.7 34.3 38.0 3.4 35.7 37.2 2.0 Sales, service and 25.0 25.9 25.3 (0.9) 20.3 24.6 4.7 marketing ('SSM') R&D 18.0 16.
Slide 12: Staff Headcount
Staff Headcount # Staff 31-Dec-21 31-Dec-20 30-Jun-21 Australia and Rest of the World Sales 31 31 33 Service 48 59 56 Production 28 28 28 Administration 24 26 30 R&D 99 115 110 Total Staff Numbers - Australia & Rest of the 235 259 257 World Americas Sales 29 28 28 Service 51 47 49 Production 38 36 3
Slide 13: Net Profit Bridge - H1FY22 vs H1FY21
Net Profit Bridge - H1FY22 vs H1FY21 • Revenue increased due to market recovery in Latin America and strong performance from North America. • $10.5m increase in in overheads in line with revenue increase and no COVID-19 government subsidies recorded in this period. • $29.2m decrease in other expense
Slide 14: Net Profit Bridge - H1FY22 vs H2FY21
Net Profit Bridge - H1FY22 vs H2FY21 • Revenue increased due to recovery in Latin America and strong performance from North America. • $8.8m increase in overheads in line with revenue increase and no COVID-19 related government subsidies recorded in this period. • $12.5m decrease in other expenses r
Slide 15: Balance Sheet
Balance Sheet 31-Dec-21 31-Dec-20 30-Jun-21 In millions of AUD Total assets 381.4 389.4 393.1 Net assets 301.7 289.2 287.9 Total debt 14.1 39.5 37.3 Net cash / (debt) 32.2 (15.5) 5.1 Debt Ratios 31-Dec-21 31-Dec-20 30-Jun-21 Debt Ratio (Total Liabilities/Total Assets) 20.90% 25.73% 26.76% Debt to Eq
Slide 16: Cash Flow Statement
Cash Flow Statement • Strong cash flows, along with effective management of operational expenses, resulted in cash held at the reporting date, an increase of 93% compared to the pcp, and 9% increase compared to the prior half. Current period Current period H1 FY22 H1 FY21 vs H2 FY21 Vs H1 FY21 H2 FY
Slide 17: Segment Performance
SEGMENT PERFORMANCE
Slide 18: North America
North America Current period Current period H1 FY22 H1 FY21 vs H2 FY21 vs In millions of AUD H1 FY21 H2 FY21 Revenue 54.6 41.0 13.6 47.5 7.1 Gross Profit 36.8 26.1 10.7 34.0 2.8 Segment EBITDA 28.4 18.6 9.8 32.2 (3.8) Segment Profit 23.1 12.3 10.8 26.8 (3.7) Segment Profit (%) 42% 30% 12% 56% (14%)
Slide 19: MTD Gaming
MTD Gaming • Commencement of field test for Gamblers Gold in Nevada at the end of January, anticipating approval by the end of May 2022. • MTD products continue to perform well in South Dakota, with anticipation of an additional 100 units to be sold in H2 FY22. • Increased sales in Louisiana where w
Slide 20: Latin America
Latin America Current period Current period H1 FY22 H1 FY21 vs H2 FY21 vs In millions of AUD H1 FY21 H2 FY21 Revenue 22.2 4.8 17.4 13.5 8.7 Gross Profit 15.0 2.6 12.4 8.5 6.5 Segment EBITDA 9.3 (5.4) 14.7 1.1 8.2 Segment Profit / (Loss) 10.0 (10.2) 20.2 1.6 8.4 Segment Profit / (Loss) (%) 45% (213%)
Slide 21: Australia
Australia Current period Current period H1 FY22 H1 FY21 vs H2 FY21 vs In millions of AUD H1 FY21 H2 FY21 Revenue 16.7 19.2 (2.5) 19.8 (3.1) Gross Profit 6.6 5.3 1.3 5.3 1.3 Segment EBITDA 3.8 3.3 0.5 2.1 1.7 Segment Profit 3.3 1.6 1.7 0.8 2.5 Segment Profit (%) 20% 8% 12% 4% 16% Unit Volume (no.) 59
Slide 22: Rest of the World
Rest of the World Current period Current period H1 FY22 H1 FY21 vs H2 FY21 vs In millions of AUD H1 FY21 H2 FY21 Revenue 7.2 7.1 0.1 6.6 0.6 Gross Profit 4.7 3.8 0.9 4.0 0.7 Segment EBITDA 4.1 3.5 0.6 3.6 0.5 Segment Profit 4.0 3.2 0.8 3.4 0.6 Segment Profit (%) 56% 45% 11% 52% 4% Unit Volume (no.)
Slide 23: Land Based Gaming Products
LAND BASED GAMING PRODUCTS A
Slide 24: Key Market Highlights
Key Market Highlights North America • HHR growth continues – 400 units sold to Kentucky Downs in the current period, installed base expected to increase in new and existing markets. • High-Denom continues to be a pinnacle – regularly 5 of the Top 25 games in industry performance charts. • A-STARTM C
Slide 25: H2 FY22
H2 FY22 North America • A-STARTM Slant Top cabinet slated to debut with focus on new and pre-existing High-Denom content. • HHR Opportunities: Louisiana HHR market approved, New Hampshire progressing. • NIGA Tradeshow scheduled for April with focus on A-STARTM Curve XL premium content. • Planned rel
Slide 26: Online
ONLINE
Slide 27: B2B Real Money Gaming (RMG) USA
B2B Real Money Gaming (RMG) USA • Ainsworth Interactive remote gaming server (RGS) is certified in all 3 of the major i-gaming states which include New Jersey, Michigan and Pennsylvania. • We have 88 games approved in New Jersey and 50 approved games in Michigan and Pennsylvania with all the major o
Slide 28: B2B Real Money Gaming (RMG) Rest of the World & Social Casinos
B2B Real Money Gaming (RMG) Rest of the World & Social Casinos • Aspire Global’s Pariplay Ltd, a leading aggregator and content provider, has joined forces with Ainsworth to distribute its online content in Latin America. • The new commercial partnership forms an important part of both Ainsworth and
Slide 29: Outlook
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Slide 30: Outlook / Conclusion
Outlook / Conclusion • AGT enters the second half of FY22 with good momentum and expects to sustain profitability. Inherent uncertainties surrounding COVID-19 continue to present challenges, primarily relating to global supply chain shortages. • AGT expects to provide a market update later within H2
Slide 31: Ainsworth Game Technology
AINSWORTH GAME TECHNOLOGY 10 Holker St, Newington NSW www.agtslots.com
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