Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — Investor Presentation (April 2012)
31 slides from Ainsworth Game Technology's investor presentation, Apr 23, 2012
Slide 1: Equity Raising
For personal use only Ainsworth Game Technology Limited Equity Raising 23 April 2012 NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS
Slide 2: Important notice and disclaimer
Important notice and disclaimer IMPORTANT NOTICE For personal use only This presentation has been prepared by Ainsworth Game Technology Limited ACN 068 516 665 (AGT), in relation to a placement (Placement) of 30 million new fully-paid ordinary shares in AGT (New Shares) to institutional investors pu
Slide 3: Executive summary
Executive summary For personal use only Ainsworth Game Technology Limited (“Ainsworth” or “AGT”) is seeking to raise approximately $44 million via a fully underwritten share placement (“Placement”) of 30 million new ordinary fully paid shares (“New Shares”) Proceeds from the Placement will be used t
Slide 4: Overview
Overview For personal use only In 1995, Len Ainsworth founded Ainsworth Game Technology Limited with a commitment to become the leading manufacturer and supplier of gaming solutions listing on the ASX in 2001 AGT is part of the gaming industry focusing on the design, development and manufacturing of
Slide 5: Investment highlights
Investment highlights For personal use only Licensed operator in key regulated international markets Innovative and proven product development capabilities Leading global game portfolio Demonstrated track record of revenue growth with profitability established Expansion into US provides increased ex
Slide 6: 1. Licensed in key regulated markets
1. Licensed in key regulated markets For personal use only Australia All domestic Australian state licences and approvals North America 15 US state licences/ approvals (including Nevada) and 76 tribal licences Work in progress in other US jurisdictions (Ohio, plus additional tribal applications) Can
Slide 7: 2. Innovative and proven R&D capability
2. Innovative and proven R&D capability For personal use only Global supplier of premium, high performance casino style gaming products Continued investment in product development resulting in improved product performance, as demonstrated by recent strength of A560 release Investment in additional s
Slide 8: 3. Leading global cabinet portfolio
3. Leading global cabinet portfolio For personal use only (Pending Regulatory Approval) Low Boy High Boy w/LCD Topper w/Oval Topper NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS 8
Slide 9: 3. Leading global game portfolio – Game Brands Domestic
3. Leading global game portfolio For personal use only Game Brands – Domestic NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS 9
Slide 10: 3. Leading global game portfolio – Game Brands International
3. Leading global game portfolio For personal use only Game Brands – International NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS 10
Slide 11: 4. Track record of growth
4. Track record of growth For personal use only Consistent track record of revenue growth - record result of $98.0m in FY11 Strong momentum into FY12 with 1H12 revenue of $68.3m Profit before taxation of $14.8m FY11 already exceeded by 1H12 result ($18.8m) Majority of revenue historically generated
Slide 12: 5. Significant potential from US expansion
5. Significant potential from US expansion For personal use only US market remains significant opportunity for Ainsworth Management focused on leveraging the Nevada licence granted in 2009 CEO Danny Gladstone recently relocated to Las Vegas to oversee expansion Establishment of new headquarters in L
Slide 13: 6. Conservative balance sheet
6. Conservative balance sheet For personal use only Net debt of $35.7m reported at 31 December 2011 Part of the proceeds of the Offer to repay accrued interest on previously provided borrowings and trade/credit facilities provided by an entity associated with Mr LH Ainsworth Repayment is consistent
Slide 14: 7. Experienced management team
7. Experienced management team For personal use only Management team with more than 200 years collective experience in the industry Len Ainsworth - Executive Chairman More than 60 years industry experience Widely recognised as an industry leader and pioneer in design and technical innovation Founder
Slide 15: Placement
For personal use only Placement NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS
Slide 16: Placement summary
Placement summary For personal use only Placement to institutional and sophisticated investors to raise approximately $44 million, Offer size & comprising: structure − 30 million new Ainsworth Game Technology Limited ordinary shares (“New Shares”) − New Shares issued will rank equally in all respect
Slide 17: Use of proceeds
Use of proceeds For personal use only Sources: $m Uses: $m Repay accrued interest owing on previously provided borrowings and trade/credit facilities Placement 44 20 provided by an entity associated with Mr Len Ainsworth (Executive Chairman) Redemption of outstanding convertible notes (maximum amoun
Slide 18: Indicative timetable
Indicative timetable For personal use only Trading halt and bookbuild Monday 23rd April 2012 Ainsworth recommences trading on ASX Tuesday 24th April 2012 Settlement date Monday 30th April 2012 Allotment and listing of New Shares Tuesday 1st May 2012 Note: All dates are indicative only and are subjec
Slide 19: Capital structure
Capital structure For personal use only The repayment of accrued interest owing on previously provided borrowings and trade/credit facilities is part of Ainsworth’s strategy to establish a balance sheet that is reflective of its size and growth prospects As part of its strategy to simplify its balan
Slide 20: Appendix - Supplementary Information
For personal use only Appendix - Supplementary Information NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS
Slide 21: Board and management profiles
Board and management profiles For personal use only Board of Directors Name Role Details Mr Len Ainsworth Executive Chairman • See slide 14 • Appointed to the Board in March 1995 Mr Danny Gladstone Managing Director and • See slide 14 Chief Executive Officer • Appointed to the Board in February 2010
Slide 22: Board and management profiles – Senior Management
Board and management profiles For personal use only Senior Management Name Role Details Mr Danny Gladstone Managing Director and • See previous slides Chief Executive Officer Mr Mark Ludski CFO and Company • More than 21 years in the gaming industry Secretary • Previously held senior finance roles a
Slide 23: Financial information
Financial information For personal use only Ainsworth Game Technology Limited Summary of Financials AUD millions 1H09 2H09 1H10 2H10 1H11 2H11 1H12 Total Revenue 20.6 24.6 31.4 37.9 43.9 54.1 68.3 Revenue growth (yoy) - 19.4% 27.6% 20.7% 15.8% 23.2% 26.2% R&D Expenditure (6.3) (6.0) (5.0) (5.3) (6.3
Slide 24: Financial information (cont)
Financial information (cont) For personal use only Ainsworth Game Technology Limited Summary of Financials (Cash Flow) AUD millions 1H09 2H09 1H10 2H10 1H11 2H11 1H12 Net Cash from Operating (3.0) 1.4 4.9 5.7 7.0 11.1 15.4 Activities Net Cash Used in Investing (1.0) (2.1) (2.3) (1.8) (2.4) (1.6) (3.
Slide 25: Appendix - Key Risks
For personal use only Appendix - Key Risks NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS
Slide 26: Key risks
Key risks For personal use only HIGHLY COMPETITIVE MARKETS Direct competitors include market leaders Sales volume and profits may be adversely impacted by new products, new competitors and existing competitors seeing bigger market share CURRENCY FLUCTUATIONS International sales predominantly in US d
Slide 27: Key risks
Key risks For personal use only TECHNOLOGY AND INTELLECTUAL PROPERTY RISK New technology risk New developments by competitors could significantly reduce the market for AGT's products New developments by AGT may not be attractive to the market Misappropriation risk AGT's products may be copied or rev
Slide 28: Key risks
Key risks For personal use only FOREIGN OPERATIONS Less stable and well-regulated as compared to Australia Potential expropriation or nationalisation of assets Inequitable economic, tax, political and regulatory policies RELIANCE ON KEY PERSONNEL Ainsworth is dependent on the experience of its direc
Slide 29: Appendix - International Offer Restrictions
For personal use only Appendix - International Offer Restrictions NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS
Slide 30: International Offer Restrictions
International Offer Restrictions For personal use only This document does not constitute an offer of New Shares of AGT in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. Hong Kong This docume
Slide 31: International Offer Restrictions
International Offer Restrictions For personal use only United Kingdom Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of
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