Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — FY2019 Earnings Presentation
29 slides from Ainsworth Game Technology's earnings presentation, Aug 27, 2019
Slide 1: FY2019 Annual Results Presentation
FY2019 ANNUAL RESULTS PRESENTATION Ainsworth Game Technology Limited
Slide 2: Disclaimer
Title 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 statuto
Slide 3: Continued execution of a clear strategy
Title Continued execution of a clear strategy: Grow international revenues and higher quality earnings 3
Slide 4: Agenda
AGENDA 1. CEO’s Observations 2. Results Summary 3. Consolidated Results 4. Segment Performance 5. Gaming Products 6. Online 7. Outlook 4
Slide 5: CEO's Observations
CEO’s Observations • Highly regarded and established recognition across all global markets. • Significant scale, footprint and excellent market reputation. • Ability to leverage scale of products across all geographic regions. • Re-evaluation and focus on investment in R&D to drive growth. “I am con
Slide 6: Results Summary
Results Summary FY19 results down: • Total sales revenue of $234.3m, decrease of 12% on pcp. • Profit before tax (excluding currency impacts and one-off items) is $13.0m. • Diluted EPS down to 3.0 cents (pcp: 9.0 cents). Continued strong contribution in international businesses: • International reve
Slide 7: Consolidated Results
CONSOLIDATED RESULTS ~ ar ( "e é ~
Slide 8: Profit & Loss summary
Profit & Loss summary • Profit before tax (excluding currency A$m 12 months to 12 months to Change (%) impacts) is $8.6m, 78% decrease 30-Jun-2019 30-Jun-2018 Domestic revenue 36.1 63.6 (43%) on pcp. • International sales growth -2% v International revenue 198.2 202.0 (2%) pcp. International sales a
Slide 9: Revenue type breakdown
Reve Revenue type breakdown 9
Slide 10: Results adjusted for currency movement
Results adjusted for currency movement 12 months to 12 months to Change A$m 30-Jun-2019 30-Jun-2018 (%) PBT 14.7 42.3 (65%) Currency gains (before tax) (6.0) (3.1) (95%) Adjusted PBT 8.6 39.2 (78%) NPAT 10.9 31.9 (66%) (1) Currency gains (after tax) (4.4) (2.6) (69%) Adjusted NPAT 6.5 29.3 (78%) Adj
Slide 11: Profit Before Tax to EBITDA
Profit Before Tax to EBITDA 12 months to 12 months to Change A$m 30-Jun-2019 30-Jun-2018 % Reconciliation: Profit before tax 14.7 42.3 (65%) Net interest (3.3) (2.3) (43%) Depreciation and amortisation 33.4 28.0 19% Reported EBITDA 44.8 68.0 (34%) Foreign currency gain (6.0) (3.1) (94%) Impairment l
Slide 12: Operating Costs
Operating Costs 12 months to 30-Jun-19 12 months 12 months Change constant currency to 30-Jun-19 to 30-Jun-18 % A$m basis Sales, service and marketing ('SSM') 61.0 64.9 59.6 9% R&D 39.4 40.4 34.4 17% Administration 24.1 25.0 23.3 7% Total Operating costs 124.5 130.3 117.3 11% • Increase in SSM expen
Slide 13: Staff Headcount
Staff Headcount Australia and Rest of the World # Staff FY19 FY18 Sales 35 35 Service 76 83 Production 31 43 Administration 38 42 R&D 135 134 Total Staff Numbers - Australia & Rest 315 337 of the World Americas # Staff FY19 FY18 Sales 33 31 Service 55 52 Production 77 78 Administration 49 51 R&D 49
Slide 14: Net Profit Bridge
Net Profit Bridge • $34.1m decrease in product sales due to reduction in unit sales, primarily from Australia and ROW. • $14.6m decrease in cogs as a direct result of reduction in units sales. • Other income decrease due to prior year gain on sale of land in LV. • $6.5m currency adjusted PAT in FY19
Slide 15: Balance Sheet
Balance Sheet • Strong balance sheet to self fund growth A$m 30-Jun-19 30-Jun-18 strategies. Total assets 483.3 506.3 • Prudent cash management resulting in net cash increase of $26.0m. Net assets 393.5 378.8 • Receivables closing balance of $148.6m (30 Total debt 55.4 71.9 June 18 : $192.7m) – redu
Slide 16: Cash Flow Statement
Cash Flow Statement 12 months to 12 months to • Net cash from operating activities is A$m 30-Jun-2019 30-Jun-2018 Change $61.2m, resulting from improved working capital management. Net cash from operating activities* 61.2 19.2 42.0 • Solid closing cash balance of Interest received - 3.9 (3.9) $61.7m
Slide 17: Segment Performance
SEGMENT PERFORMANCE 17
Slide 18: North America
North America Consistent strong performance: A$m 12 months to 12 months to Change (%) 30-Jun-2019 30-Jun-2018 • Revenue growth due to increased Revenue 114.0 105.7 8% sales of the high performing Quick Gross Profit 74.7 65.6 14% SpinTM product family on the A640 Segment EBITDA 57.4 50.3 14% cabinet.
Slide 19: Latin America
Latin America Lighter Performance: 12 months to 12 months to A$m Change (%) 30-Jun-2019 30-Jun-2018 • Legacy game performance is strong Revenue 72.7 78.7 (8%) thus providing continued profitability Gross Profit 43.7 47.7 (8%) throughout the region. Segment EBITDA 29.1 34.1 (15%) • Decline in ASP due
Slide 20: Australia
Australia Competitive pressures affect results: 12 months to 12 months to A$m Change (%) 30-Jun-2019 30-Jun-2018 • New product launches expected to Revenue 36.1 63.6 (43%) re-energise performance. Gross Profit 14.0 30.9 (55%) • Maintained ASP despite tough Segment EBITDA 5.4 21.6 (75%) conditions. S
Slide 21: Rest Of World
Rest Of World g Challenged performance 12 months to 12 months to A$m Change (%) 30-Jun-2019 30-Jun-2018 • Revenue decreased by 35%, mainly Revenue 11.5 17.6 (35%) reduced contribution from Novomatic Gross Profit 7.5 12.4 (40%) compared to pcp. Segment EBITDA 7.1 10.7 (34%) • Online contributed $4.2m
Slide 22: Gaming Products
GAMING PRODUCTS 22
Slide 23: Key Highlights
Title Key Highlights • Delivered a diverse range of new game brands from the portfolio to key markets. • Continued the success of the Quick SpinTM brand with a new suite of games – Super Crystal 7’s, Super Volcano 7’s, Super Money 7’s and Super Lantern 8’s. • Launch of Multiplay games - Super Charge
Slide 24: Pipeline
Title Pipeline Continue executing on our global game strategy to: • Continue the rollout of current new game brands – Loaded with LootTM and Electric CashTM. • Release a broad range of new innovative Class III proprietary brands across the EVOTM and A640TM cabinets including: • Lucky Break • Money U
Slide 25: Online
ONLINE 25
Slide 26: Online
Title Online Our strategy is to focus on content distribution, interactive product innovation and building player databases with live data capabilities throughout the online markets of Europe, LATAM and the USA. Ainsworth Interactive is a self-contained division that is engaged in the design, develo
Slide 27: Online
Title Online BUSINESS HIGHLIGHTS • Ainsworth has 62 games developed and approved for online distribution throughout regulated territories in Europe, USA and Latin America in FY19. • 20 games are now approved by the Division of Gaming Enforcement in New Jersey with platform provider GVC for PlayMGM o
Slide 28: Outlook
Title Outlook CEO: “I am confident AGT can drive long term growth by leveraging its excellent reputation, focusing R&D and complementing organic performance with selective acquisitions”. • Strive to drive long term growth by leveraging AGT’s established reputation and continual focus on R&D. • Explo
Slide 29: Ainsworth Game Technology
AINSWORTH GAME TECHNOLOGY 10 Holker St, Newington NSW www.agtslots.com.au
Ainsworth Game Technology — FY2019 Earnings Presentation on 6ix