Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — H1 FY2023 Earnings Presentation
35 slides from Ainsworth Game Technology's earnings presentation, Feb 27, 2023
Slide 1: Results for Six Months Ended 31 December 2022 – 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 27 February 2023 ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 ELECTRONIC LODGEMENT Results for Six Months Ended 31 December 2022 –Results
Slide 2: Results for 6 months ended 31 December 2022
Ainsworth Game Technology Limited ABN 37 068 516 665 | ASX Code: AGI Results for 6 months ended 31 December 2022 Investor’s Presentation 27 February 2023 1
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 r
Slide 4: Agenda
Agenda • Results Summary WELCOME • Consolidated Results • Segment Performance • Land Based Gaming Products • Online • Conclusion 3
Slide 5: Results Summary
Results Summary 4
Slide 6: Results Summary
Results Summary • Profit before tax normalised for currency and one-off items of $18.8m for the 6 months ended December 2022 (“Current period”), improvement of 88% compared to pandemic- impacted 6 months ended 31 December 2021 (“pcp”) with government restrictions in place in LATAM and Australia duri
Slide 7: Gaming Operations with recurring revenues and steady international sales contribution
Gaming Operations with recurring revenues and steady international sales contribution 6
Slide 8: Consolidated Results
Consolidated Results 7
Slide 9: Profit & Loss Summary
Profit & Loss Summary 6 months 6 months 6 months ended 12 months ended ended Current period Current period In millions of AUD 31 Dec 2022 ended 31 Dec 2021 30 Jun 2022 vs PCP vs Prior half (Current 30 Jun 2022 (PCP) (Prior half) period) Domestic revenue 23.2 16.7 22.2 38.9 6.5 1.0 International reve
Slide 10: Results Adjusted For Currency Movement and One-off Items
Results Adjusted For Currency Movement and One-off Items 6 months 6 months 6 months ended 12 months ended ended Current period Current period In millions of AUD 31 Dec 2022 ended 31 Dec 2021 30 Jun 2022 vs PCP vs Prior half (Current 30 Jun 2022 (PCP) (Prior half) period) Profit Before Tax 7.3 13.9 1
Slide 11: Reconciliation: Profit Before Tax to EBITDA & Underlying EBITDA
Reconciliation: Profit Before Tax to EBITDA & Underlying EBITDA 6 months 6 months 6 months ended 12 months ended ended Current period Current period In millions of AUD 31 Dec 2022 ended 31 Dec 2021 30 Jun 2022 vs PCP vs Prior half (Current 30 Jun 2022 (PCP) (Prior half) period) Reconciliation: Profi
Slide 12: Operating Costs
Operating Costs 6 months 6 months 6 months 6 months to 6 months to ended 12 months ended ended 31 Dec 2022 31 Dec 2022 Current period Current period In millions of AUD 31 Dec 2022 ended 31 Dec 2021 30 Jun 2022 at PCP at Prior half vs PCP vs Prior half (Current 30 Jun 2022 (PCP) (Prior half) currency
Slide 13: Staff Headcount
Staff Headcount # Staff 31-Dec-22 31-Dec-21 30-Jun-22 Australia and Rest of the World Sales 25 31 23 Service 52 48 54 Production 26 28 26 Administration 27 28 29 R&D 97 99 90 Total Staff Numbers - Australia & Rest of the World 227 234 222 North and Latin America Sales 31 29 32 Service 61 51 59 Produ
Slide 14: Net Profit Bridge – Current period vs PCP
Net Profit Bridge – Current period vs PCP • Revenue increased due to market recovery in Latin America. • $13.3m increase in overheads in line with revenue increase and inflation costs. • $10.6m increase in other expenses relates to additional recognition of provision on SAT audit and increase in pro
Slide 15: Net Profit Bridge – Current period vs Prior half
Net Profit Bridge – Current period vs Prior half • Revenue increased due to market recovery in Latin America. • $9.6m increase in overheads due to increasing inflation costs. • $9.6m decrease in other expenses relates to $16.5m provision on SAT audit that was recognised in prior half. • $6.8m unfavo
Slide 16: Balance Sheet
Balance Sheet In millions of AUD 31-Dec-22 31-Dec-21 30-Jun-22 Total assets 425.7 381.4 406.5 Net assets 320.2 301.7 311.3 Total debt 0.6 14.1 - Net cash 36.5 32.2 50.3 Debt Ratios 31-Dec-22 31-Dec-21 30-Jun-22 Debt ratio (Total liabilities / Total assets) 25% 21% 23% Debt to equity ratio (Total lia
Slide 17: Cash Flow Statement
Cash Flow Statement • Cash balance at 31 December 2022 was affected by a decrease in net cash from operating activities due to increase in working capital investment (particularly inventory) to mitigate global supply chain shortages and overall rising costs due to inflation. 6 months 6 months 6 mont
Slide 18: Segment Performance
Segment Performance 17
Slide 19: North America
North America 6 months 6 months 6 months ended 12 months ended ended Current period Current period In millions of AUD 31 Dec 2022 ended 31 Dec 2021 30 Jun 2022 vs PCP vs Prior half (Current 30 Jun 2022 (PCP) (Prior half) period) Revenue 59.7 54.6 60.5 115.1 5.1 (0.8) Gross Profit 47.1 36.8 42.1 78.9
Slide 20: Gambler's Gold MultiGame
Gambler’s Gold MultiGame • Following the success of games in South Dakota, the launch of the games in Louisiana has shown similar results as previously expected. • Feedback from 2022 Nevada field trial and first placements in other Class III markets being implemented into a new product package is ex
Slide 21: Latin America
Latin America 6 months 6 months 6 months ended 12 months ended ended Current period Current period In millions of AUD 31 Dec 2022 ended 31 Dec 2021 30 Jun 2022 vs PCP vs Prior half (Current 30 Jun 2022 (PCP) (Prior half) period) Revenue 33.1 22.2 30.0 52.2 10.9 3.1 Gross Profit 22.2 15.0 19.4 34.4 7
Slide 22: Australia
Australia 6 months 6 months 6 months ended 12 months ended ended Current period Current period In millions of AUD 31 Dec 2022 ended 31 Dec 2021 30 Jun 2022 vs PCP vs Prior half (Current 30 Jun 2022 (PCP) (Prior half) period) Revenue 23.2 16.7 22.2 38.9 6.5 1.0 Gross Profit 7.3 6.6 7.4 14.0 0.7 (0.1)
Slide 23: Rest of the World (including Online)
Rest of the World (including Online) 6 months 6 months 6 months ended 12 months ended ended Current period Current period In millions of AUD 31 Dec 2022 ended 31 Dec 2021 30 Jun 2022 vs PCP vs Prior half (Current 30 Jun 2022 (PCP) (Prior half) period) Revenue 8.1 7.2 6.8 14.0 0.9 1.3 Gross Profit 7.
Slide 24: Land Based Gaming Products
Land Based Gaming Products 23
Slide 25: Key Market Highlights – North America
Key Market Highlights NORTH AMERICA • Treasure SpiritsTM off to strong start with test banks performing well in extremely competitive environments. • HHR product live in multiple New Hampshire locations on reoccurring revenue model. • Cash Stacks GoldTM and UItra ShotTM series expected to be commerc
Slide 26: Key Market Highlights – Latin America
Key Market Highlights LATIN AMERICA • Demand continues to grow for the new A-STARTM cabinets. • Pan ChangTM, Cash StacksTM, Xtension LinkTM and Multi-WinTM games remain top-performing products. • Xtension LinkTM performing very well and driving expanded placements in the region. 25
Slide 27: Key Market Highlights – Australasia
Key Market Highlights AUSTRALASIA • Strong installs backed by solid performance of Cash StacksTM in Qcom markets and continued rollout of Treasure SpiritsTM in multiple markets with exceptional performance in NSW. • Launch of new Ultra ShotTM Series. Strong performance maintained across all jurisdic
Slide 28: Game Development Investments
Game Development Investments Clear Product Strategy • Globalisation of key tentpole products – Treasure SpiritsTM, Cash Stacks GoldTM, Ultra ShotTM and Grand FortuneTM. • Focus on leveraging High DenomTM content with new concepts and utilising key brands – Thunder Cash ClassicTM and Dollar Streak Cl
Slide 29: Global Game Studios
Global Game Studios PREVIOUS CURRENT Las Las Sydney Sydney Vegas Vegas Global Game Global Game Studios Studios Reno Austin Expanded R&D Studio Structure • Announced opening of Austin, Texas in partnership with Junto Creations (Jim Palermo) – 20+ years’ experience with WMS, Everi and Incredible Techn
Slide 30: Online
Online 29
Slide 31: B2B Real Money Gaming (RMG) & Social Casinos
B2B Real Money Gaming (RMG) & Social Casinos Ainsworth Interactive is a B2B Real Money Gaming (RMG) online content supplier offering digital slot games in the iGaming industry. We have established ourselves as a leading iGaming supplier in regulated markets in Europe, Latin America and North America
Slide 32: B2B Real Money Gaming (RMG)
B2B Real Money Gaming (RMG) USA LATAM EUROPE 31
Slide 33: Conclusion
Conclusion 32
Slide 34: Conclusion
Conclusion • Revenue improvements across all major markets compared to pcp and fairly consistent revenue compared to prior half. AGT enters the calendar year 2023 with good momentum and expects to have continued growth in North America, further improvements in Latin America markets and steady perfor
Slide 35: Ainsworth Game Technology
Ainsworth Game Technology 10 Holker St, Newington NSW www.agtslots.com *All trademarks, logos and brand names are the properties of their respective owners 34
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