Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — H1 FY2016 Earnings Presentation
39 slides from Ainsworth Game Technology's earnings presentation, Feb 23, 2016
Slide 1: 1HFY16 Results Announcement
For personal use only 1HFY16 Results Announcement Ainsworth Game Technology Limited 23rd February, 2016 Danny Gladstone CEO Mark Ludski CFO
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: Agenda
For personal use only 1.Results 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 and Social 9.Nova Update 10.Outlook and Questions 3
Slide 4: Continuing International Growth and Profitability
Continuing International Growth and Profitability Historical Financial Performance For personal use only 240 122.3 128.7 190 101.6 140 82.3 A$Millions 141.9 121.8 111.9 90 54.1 96.5 48.9 36.4 37.9 68.3 39.2 40 27.4 45.6 45.5 43.9 44.8 31.4 30.1 11.4 18.8 1.6 3.4 -10 Rev PBT Rev PBT Rev PBT Rev PBT R
Slide 5: 1HFY16 Results Summary
1HFY16 Results Summary For personal use only - Continued execution of a clear strategy: A more diversified Ainsworth is developing with an improving quality of recurring earnings and strong growth, profitability and strategic value in international markets. • Total sales revenue of $141.9m, an incre
Slide 6: 1HFY16 Results
1HFY16 Results - Continued strong domestic and international game performance For personal use only • The recent release of the A600™ cabinet and Cash Adventures™ game series has seen steady growth in the Domestic market. • Internationally Low Denomination Core game titles and A560SL™ Sweet Zone™ ga
Slide 7: 1HFY16 Results
1HFY16 Results - Online and social – continued to build platform for growth. Game Connect™ RGS and 10 HTML5 For personal use only games approved in the UK. Ainsworth Games now available on 35 Online Casino Operators. Social live for 12 months, 50k daily average users. King Spin Slots™ new social cas
Slide 8: Agenda
For personal use only 1.Results 2.Consolidated Results 3.Segment Results - Australia 4.Segment Results - Americas 5.Segment Results - Rest of the World 6.Gaming Products 7.Regulatory Update 8.Online and Social 9.Nova Update 10.Outlook and Questions 8
Slide 9: Group Profit & Loss Summary
Group Profit & Loss Summary For personal use only ̶ 57% international revenue growth offset A$m 6 months to 6 months to Movement Change challenged domestic performance. 31 Dec 2015 31 Dec 2014 (%) ̶ International markets represent 65% of total revenue driven by revenue gains in Domestic revenue 50.3
Slide 10: Results Adjusted for Currency Gains
Results Adjusted for Currency Gains 6 months to 6 months to Change A$m Movement 31 Dec 2015 31 Dec 2014 (%) For personal use only PBT 44.8 45.5 ▼ -2% Currency gains (before tax) -9.8 -14.3 ▼ -32% Adjusted PBT 35.0 31.2 ▲ 12% NPAT 33.1 34.6 ▼ -4% Currency gains (after tax)¹ -6.9 -10.0 ▼ -32% Adjusted
Slide 11: Segment Overview
Segment Overview 6 months to 6 months to Change For personal use only 31-Dec-15 31-Dec-14 % Segment revenue Australia $50.3 $53.5 -6% Americas $79.9 $52.8 51% Rest of World $11.7 $5.6 109% Total segment revenue $141.9 $111.9 27% Segment result Australia $19.0 $28.5 -33% Americas $34.8 $20.6 69% Rest
Slide 12: Net Profit Bridge
Net Profit Bridge 70,000 For personal use only 6,093 191 2 15,568 60,000 23,699 50,000 5,454 40,000 813 4,663 4,516 $A '000's 10,013 34,645 487 30,000 33,129 6,852 26,277 24,632 20,000 10,000 0 NPAT NPAT Machine Participation Service Other Cogs Overheads Tax D&A Forex Net Interest NPAT NPAT 1HFY16 1
Slide 13: Ainsworth at a Glance
Ainsworth at a Glance 1HFY16 Revenue Breakdown by Geography Americas Game Operations - Installed Base For personal use only 8% 129 460 985 North Participation 36% Australia 26% Latin Participation North America North Rental Latin America Rest of the World Latin Rental 1694 30% As at 31/12/2015 Opera
Slide 14: Balance Sheet
Balance Sheet For personal use only A$m 31-Dec-15 30-Jun-15 ̶ Strong balance sheet position with Cash 17.9 26.1 capital to fund growth and innovation. Term Deposits - 15.2 Receivables 117.2 109.4 ̶ Receivables totalled to $155.1m Other Current Assets 66.5 70.5 (FY15:$145.7m) – an increase of 6% Tota
Slide 15: Cash Flow Statement
Cash Flow Statement 6 months to 6 months to For personal use only A$m Change ̶ Dividend paid of $16.1m (5 cents 31 Dec 2015 31 Dec 2014 per ordinary share) paid during the half. Net Cash from Operating activities 17.0 12.0 5.0 ̶ Increase in acquisitions of PPE Interest received 1.2 1.6 (0.4) predomi
Slide 16: Agenda
For personal use only 1.Results 2.Consolidated Results 3.Segment Results - Australia 4.Segment Results - Americas 5.Segment Results - Rest of the World 6.Gaming Products 7.Regulatory Update 8.Online and Social 9.Nova Update 10.Outlook 16
Slide 17: Segment Results - Australia
Segment Results - Australia ̶ Challenging period for volume and revenue 6 months to 6 months to Movement For personal use only growth given highly competitive domestic A$m Change (%) market conditions and: 31-Dec-15 31-Dec-14 ▲/▼ • the product transition across Revenue 50.3 53.5 ▼ -6% Eastern Seaboa
Slide 18: Agenda
For personal use only 1.Results 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 and Social 9.Outlook and Questions 18
Slide 19: Segment Results - Americas (North America)
Segment Results - Americas For personal use only ̶ Growth in revenue, volume and North America profitability. ̶ 20% increase in unit volume sales, A$m 6 months to 6 months to Movement Change (%) similar ASP’s: Increased contribution 31-Dec-15 31-Dec-14 ▲/▼ from Pennsylvania, Wisconsin, Revenue 43.0
Slide 20: North America 1HFY16 Win Per Day
North America 1HFY16 Win Per Day For personal use only 20
Slide 21: Game Performance – North America
For personal use only Game Performance – North America ̶ Information is based on sample data obtained from nearly 4,000 customer units. ̶ All regions show overall performance above house average. ̶ The strongest performance is in the West with an average win index of 1.4. ̶ This report covers 142 ga
Slide 22: Performance by Brand – North America
For personal use only Performance by Brand – North America ̶ Information is based on sample data obtained from nearly 4,000 customer units. ̶ Top performing brand is High Denom with an average index of 1.7. ̶ Top performing brands by reported install base are Sweet Zone, 40/50/100 Series then Quad S
Slide 23: Segment Results - Americas (Latin America)
Segment Results - Americas For personal use only ̶ Strong growth in revenue, volume Latin America and profitability across the region. 6 months to 6 months to Movement ̶ 29% increase in units sold with A$m Change (%) 31-Dec-15 31-Dec-14 ▲/▼ increased contribution from Mexico, largest market (42% inc
Slide 24: Latin America 1HFY16 Win Per Day
Latin America 1HFY16 Win Per Day For personal use only 24
Slide 25: Agenda
For personal use only 1.Results 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 and Social 9.Nova Update 10.Outlook and Questions 25
Slide 26: Segment Results – Rest of the World
Segment Results – Rest of the World For personal use only ̶ Strong sales growth with increase in New 6 months to 6 months to Movement Zealand revenues to $7.5m (up 311% to A$m 31-Dec-15 31-Dec-14 ▲/▼ Change (%) pcp). Revenue 11.7 5.6 ▲ 108% ̶ The Asian market slowdown in certain Segment Result 6.3 3
Slide 27: Agenda
For personal use only 1.Results 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 and Social 9.Nova Update 10.Outlook and Questions 27
Slide 28: Gaming Products
Gaming Products - Ainsworth’s game strategy: concentrate on mid denomination and legacy product, based on existing For personal use only proven maths models as well as expanding our game offering with revolutionary concepts that will add a new dimension to our extensive range. - Significant in house
Slide 29: Gaming Products
Gaming Products For personal use only - North America market releases in both A560SL™ and A560™ these include; • New Sweet Zone™ • Double Sweet Zone™ • Sky High Stacks™ • Thunder Wilds™ • Double Shot™ • Quad Shot™ • New & exciting 40L/50L product • High Denomination product Australia - Adding to the
Slide 30: Gaming Products
Gaming Products North America For personal use only - Good contribution from our new Double Sweet Zone™, Sky High Stacks™ and continued grow of our 40/50 lines core game titles. - New concept development continues for the upcoming A600™ launch. - A list of proven game concepts will also be available
Slide 31: Agenda
For personal use only 1.Results 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 and Social 9.Nova Update 10.Outlook and Questions 31
Slide 32: Regulatory Update
Regulatory Update Continued execution of clear strategy to secure selective new licenses to enhance growth. For personal use only From 1 July 2015 to 31 December 2015, the AGT group has secured the following new gaming licenses: Delaware Bahamas Louisiana (Indian Gaming Unit) Puerto Rico New Mexico
Slide 33: Agenda
For personal use only 1.Results 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 and Social 9.Nova Update 10.Outlook and Questions 33
Slide 34: Online and Social
Online and Social For personal use only Ainsworth is developing a solid platform in Online and Social. Disciplined investment approach to maximise returns. Real Money Gaming: - Game Connect™ RGS and 10 HTML5 games are approved in UK and Alderney with platform providers Microgaming and NYX. • Ainswor
Slide 35: Agenda
For personal use only 1.Results 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 and Social 9.Nova Update 10.Outlook and Questions 35
Slide 36: Nova Update
Nova Update For personal use only - Pleased with Nova – early performance on track. - Detailed immediate integration plan now being executed. - Nova acquisition completed on 15th January 2016, USD$38M purchase price funded through ANZ facility. - Highly complementary acquisition – provides AGT with
Slide 37: Agenda
For personal use only 1.Results 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 and Social 9.Nova Update 10.Outlook and Questions 37
Slide 38: FY2016 Outlook
FY2016 Outlook 1HFY16 results show continued execution of clear strategy: AGT is For personal use only - Becoming more diversified: International revenues are 65% of total. - Becoming more profitable: Currency adjusted NPAT of $26.3m, +7% v pcp, North America profit +40%, Rest of the World +91%, Lat
Slide 39: Thank You
Thank You For personal use only Thank you for your interest in Ainsworth Game Technology Limited Please visit us at www.ainsworth.com.au 39
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