Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — Shareholder Meeting (November 2017)
27 slides from Ainsworth Game Technology's shareholder meeting presentation, Nov 28, 2017
Slide 1: Ainsworth Game Technology
AINSWORTH GAME TECHNOLOGY
Slide 2: Agenda
Agenda • Welcome • Chairman’s Address • Chief Executive Officer’s Address • Annual General Meeting 2
Slide 3: Chairman's Address
Chairman’s Address Presentation by Graeme Campbell 3
Slide 4: 2017 Financial Highlights
2017 Financial Highlights FY17 Profit exceed guidance: • PBT (excluding currency impacts) is $57.4m, 2.5% ahead of guidance Strong 2H17 recovery: • 2H PBT $42.2m, a 178% increase on the $15.2m in 1HFY17 Continued growth in international businesses: • International revenue $208.0m, +2% , 74% of total
Slide 5: Americas – primary focus for growth
Americas – primary focus for growth • LV facility enhancing AGT’s profile and representation with customers • The investment in the LV based game studio will continue to broaden AGT content with the release of several new game titles Las Vegas Facility – opened in April 2016 • Class II games will co
Slide 6: 2017 Financial Highlights (continued)
2017 Financial Highlights (continued) Latin America revenue $78.5m, +5%, profit +11% • 5 years of consistent profitable growth Rest of the World revenue $28.1m, +54%, profit +50% • Increase in unit volumes driven by improved Europe performance and Novomatic AG synergies Domestic revenue $74.1m, 26%
Slide 7: Units
hs 2017 AGM PRESENTATION Units 0 Units on Participation | —#~ International % of sales % 6,000 80% 78% 11% 5,317 ll 7 5,000 |—| 61% 4,586 60% 4,000 — 50% 41% 3,000 37% 40% 2,627 32% 1,989 30% 2,000 —_ 20% 1,156 4,000 7aL 10% 0 0% FY12 FYB FYI4 FYI FYI6 FYL7
Slide 8: Chief Executive Officer's Address
Chief Executive Officer’s Address Presentation by Danny Gladstone 8
Slide 9: Profit and Loss Summary
Segment Profit Results – Rest and Loss Summary of the World A$m FY17 FY16 Change (%) Domestic revenue 74.1 81.5 (9%) International revenue 208.0 204.0 2% Total revenue 282.1 285.5 (1%) Gross profit 170.0 171.7 (1%) EBITDA 70.3 95.8 (27%) PBT 46.9 75.1 (38%) Income tax expense 9.0 19.4 (54%) NPAT 37.
Slide 10: Segment Operating Costs and Staff Costs
Results – Rest Segment Operating Costsof the World FY17 FY16 Variance Sales, service and marketing 52.1 52.0 0% R&D 34.2 28.6 20% Administration 26.2 19.8 32% Total Operating costs 112.5 100.4 12% Staff Costs Australia and Rest of the World Americas # Staff FY17 FY16 # Staff FY17 FY16 Sales 38 37 Sa
Slide 11: Balance Sheet Ratios
Balance Sheet Ratios Financial covenants ratios FY17 FY16 Interest cover ratio - (EBITDA/Interest Expense) 58.28 139.12 Gearing Ratio - (Debt)/(Debt + Equity) 16.01% 17.69% Leverage Ratio - (Debt/EBITDA) 0.93 0.71 Debt ratios FY17 FY16 Debt ratio (Total Liabilities/Total Assets) 25.84% 27.55% Debt t
Slide 12: Segment Results - North America
World Segment Results - North America North America – continued strong Change A$m FY17 FY16 position in the market: (%) Revenue 101.4 111.0 (9%) • Release of Pac Man Wild Edition in H2 drove strong demand for Segment Profit 44.6 49.3 (10%) licensed software titles. Over 350 Segment Profit (%) 44% 44
Slide 13: North America Route Market Momentum
World North America Route Market Momentum • FY17 resulted in the full and complete integration of the Nova Technologies acquisition completed in January 2016 • Washington: - In July, Ainsworth announced that Tulalip Resorts Casino has agreed to serve as its sponsor for required class III - central d
Slide 14: Continued Development of Top Performing Brands in North America
Continued Development of Top Performing Brands in North America Top Performing Brands • All brands listed are performing at an average index of 1.4x to 2.9x of house average 14
Slide 15: Segment Results - Latin America
World Segment Results - Latin America Latin America – continued strong Change A$m FY17 FY16 position in the market: (%) Revenue 78.5 74.8 5% • Impressive growth pattern in revenue and units across all Segment Profit 37.7 34.0 11% markets for five consecutive years Segment Profit (%) 48% 45% 3% • ASP
Slide 16: Continued Development of Top Performing Brands in Latin America
Continued Development of Top Performing Brands in Latin America Top Performing Brands • All brands listed are performing at an average index of 1.75x to 2.5x of house average 16
Slide 17: Australia Segment Results
World - Australia Segment Results • Challenging period for volume and Change A$m FY17 FY16 revenue growth given highly (%) competitive market conditions and Revenue 74.1 81.5 (9%) minimal corporate and casino Segment Profit 24.0 29.0 (17%) sales in FY17 Segment Profit (%) 32% 36% (4%) • Early signs
Slide 18: Rest of the World Segment Results
– Rest of the World World Segment Results • Strong growth in sales +54% and A$m FY17 FY16 Change profit +50% (%) Revenue 28.1 18.2 54% • Unit volumes increased +74% Segment Profit 15.0 10.0 50% • Increased sales contribution from Segment Profit (%) 53% 55% (2%) Asia and Europe (Novomatic AG) Unit Vo
Slide 19: 2017 Real Money Gaming
eee 2017 AGM PRESENTATION REAL MONEY GAMING Platform Partnerships SOCIAL CASINO GAMING — Microgamin ce G EION (1°VX GAMING GROUP Leander. SOFT SIMPLY PLAY SLOTS ‘ Ainsworth apps available in Google Play store, Apple iTunes and Facebook for PC Social Casino Partnerships
Slide 20: Outlook
Outlook • Our profit expectations for FY18 are unchanged, although heavily weighted to 2H. • 1HFY18 profit is adversely impacted by product approval delays in Australia, temporary margin impacts from a change in the sales mix as we complete the product transition in US and lower unit sales in Asia.
Slide 21: Financial Statements and Reports
Financial Statements and Reports To receive and consider the Annual Financial Report including the Directors’ and Auditor’s Reports in respect of the financial year ended 30 June 2017. 21
Slide 22: Resolution 1
Resolution 1 Re-election of Mr Leonard Hastings Ainsworth, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Leonard Hastings Ainsworth, who retires in accordance with Rule 7.1(f) of the Company Constitution and ASX Listing Rule 14.4, a
Slide 23: Resolution 2
Resolution 2 Re-election of Mr Graeme John Campbell, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Graeme John Campbell, who retires in accordance with Rule 7.1(f) of the Company Constitution and ASX Listing Rule 14.4, and being eli
Slide 24: Resolution 3
Resolution 3 Election of Mr Harald Michael Karl Neumann, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Harald Michael Karl Neumann, who was appointed as an additional director on 21 February 2017 in accordance with Rule 7.1(d) of th
Slide 25: Resolution 4
Resolution 4 Approval of Remuneration Report To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That the Remuneration Report for the Company required by section 250R(2) of the Corporations Act 2001 (Cth), which is included in the Directors’ Report in respec
Slide 26: Resolution 5
Resolution 5 Approval for the grant of Performance Share Rights to the Chief Executive Officer To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That for the purpose of ASX Listing Rules 7.1 and 10.14, as well as sections 200B and 208 of the Corporations A
Slide 27: New South Wales, Australia 2127
New South Wales, Australia 2127 T. +61 2 9739 8000 F. +612 9648 4327 www.agtslots.com.au 27
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