Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — Shareholder Meeting (May 2023)
31 slides from Ainsworth Game Technology's shareholder meeting presentation, May 19, 2023
Slide 1: 2023 Annual General Meeting (AGM) Addresses to Shareholders and Presentation
Ainsworth Game Technology Ltd ABN 37 068 516 665 10 Holker Street, Newington NSW 2127 Tel: +61 2 9739 8000 www.agtslots.com 19 May 2023 ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 ELECTRONIC LODGEMENT 2023 Annual General Meeting (AGM) Addresses to Shareholders an
Slide 2: 2023 Annual General Meeting Addresses
Ainsworth Game Technology Ltd ABN 37 068 516 665 10 Holker Street, Newington NSW 2127 Tel: +61 2 9739 8000 www.agtslots.com.au 19 May 2023 ASX Release ASX Code: AGI AINSWORTH GAME TECHNOLOGY LIMITED 2023 ANNUAL GENERAL MEETING ADDRESSES NON-EXECUTIVE CHAIRMAN (Presented by Mr Danny Gladstone) Ladies
Slide 3: Business model and performance
development to improve game performance in all our markets, which is expected to translate into market share gains and sustained success. I’d like to highlight three other positive features of our business model and performance in the half year ended 31 December 2022. First, international revenues i
Slide 4: Chairman's Address
Since I commenced as your CEO, we have encountered the challenges resulting from the pandemic and changes in economic conditions across global markets. The resultant supply chain shortages experienced for the componentry underpinning our technology was foreshadowed and strategies implemented to ensu
Slide 5: North America
North America continued to perform strongly in the reported six-month period with revenue of $59.7 million, an increase of 9% on the PCP, representing 59% of total international revenue. High denomination games continue to be a strength of AGT in the United States with development initiatives initia
Slide 6: Rest of the World
I would note that despite a strong ASP being maintained, competitive market conditions continue with overall gross and segment profits being impacted by inflationary pressures and the weakening of the Australian dollar against the US dollar which adversely impacted costs of production in the period.
Slide 7: R&D and product roadmap
As I have noted for us to ensure continued growth and to sustain our performance, we needed to improve the outputs of our R&D investments. We expect that these initiatives will lift the competitiveness of our product and offer more value to our customers. An established product road map and strategi
Slide 8: Annual General Meeting
ANNUAL GENERAL MEETING 19 MAY 2023 AINSWORTH GAME TECHNOLOGY LIMITED
Slide 9: Agenda
AGENDA 1. Welcome 2. Introduction to Board of Directors 3. Chairperson’s Address 4. Chief Executive Officer’s Address 5. Conclusion 6. Formal Business 7. Other Business 2
Slide 10: Board of Directors
Board of Directors • Significant scale, footprint and excellent market reputation. • Re-evaluation and focus on investment in R&D to drive growth. • Achieve growth opportunities in established and new markets. • Disciplined M&A strategy to drive earnings growth. ANNUAL GENERAL MEETING 19 MAY 2023 3
Slide 11: Chair Person's Address
CHAIR PERSON’S ADDRESS Presentation by DANNY GLADSTONE
Slide 12: Results Summary
Results Summary • Significant scale, footprint and excellent market reputation. • 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”) wi
Slide 13: Reconciliation: Profit Before Tax to EBITDA & Underlying EBITDA
Reconciliation: Profit Before Tax to EBITDA & Underlying EBITDA The $3.9m impairment charge recognised in the six-month period ended 31 Dec 22 predominately relates to reduction in available headroom in the LATAM CGU due to a lower recoverable amount for this CGU. This non-cash impairment resulted f
Slide 14: Balance Sheet
Balance Sheet • Receivables closing balance of $115.5m as at 31 Dec 22 (31 Dec 21: $103.5m, 30 June 22: $112.7m) resulted in an improved receivable turnover ratio compared to 31 Dec 21, a pandemic affected period. • Inventory closing balance of $90.1m (31 Dec 21: $55.7m, 30 June 22: $68.3m). Increas
Slide 15: Chief Executive Officer's Address
CHIEF EXECUTIVE OFFICER’S ADDRESS Presentation by HARALD NEUMANN
Slide 16: Profit & Loss summary
Profit & Loss summary • Increased revenue in the current period compared to pcp due to strong recovery of the LATAM market. Slight improvement of revenue compared to prior half, predominately from LATAM, Australia and ROW region. • Profit before tax (excluding currency impact) is $9.4m, compared to
Slide 17: Segment Result Summary – North America
Segment Result Summary – North America • Revenue of $59.7m in the current period, an increase of 9% compared to the $54.6m revenue in the pcp. Current period revenue decreased by 1% compared to the prior half. • Participation & lease revenue of $23.7m and contributing 40% of the current period’s seg
Slide 18: Segment Result Summary – Latin America
Segment Result Summary – Latin America • Revenue increase of 49% compared to pcp, current period revenue increased 10% compared to the prior half. • Segment profit increase of 4% in current period compared to pcp and decrease 4% compared to the prior half. • Of the 908 machines AGT sold in the perio
Slide 19: Segment Result Summary – Australia
Segment Result Summary – Australia • Improvement in segment revenue of $23.2m in the current period compared to pandemic-affected pcp of $16.7m. • Segment profit decreased by 36% compared to the pcp and 28% compared to prior half, driven by increasing pressures on costs of production. • Improved ASP
Slide 20: Segment Result Summary – Rest of the World (ROW)
Segment Result Summary – Rest of the World (ROW) • The online revenue contributed $6.4m in the current period and continues to account for the majority of total revenue from this segment. New Zealand and Asia also contributed to the revenue achieved in the current period. • Minimal unit sales relate
Slide 21: Key Market Highlights
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 22: Conclusion
CONCLUSION
Slide 23: Conclusion
Title Conclusion • Based on current forecasts and as announced we expect to report approximately $20 million in PBT, pre-currency and one-offs for the first half of 2023. • Revenue improvements across all major markets compared to pcp and fairly consistent revenue compared to prior half. AGT enters
Slide 24: Formal Business
FORMAL BUSINESS
Slide 25: Financial Statements and Reports
Financial Statements and Reports To receive and consider the Annual Financial Report, including the Director’s and Auditor’s Reports in resect of the six month period ended 31 December 2022. In attendance is Kevin Pyeun from KPMG, the Company’s auditor who is • Significant available to answer any qu
Slide 26: Resolution 1
Resolution 1 Re-election of Mr. Graeme John Campbell, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: • Significant “That Mr. Graeme John Campbell, scale, footprint who retires and excellent in accordance withmarket Rulereputation. 7.1(f) of t
Slide 27: Resolution 2
Resolution 2 Election of Dr. Haig Asenbauer, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Dr Haig Asenbauer, who • Significant scale, footprint was appointed as anand excellent market additional reputation. director on 22 March 2023 i
Slide 28: Resolution 3
Resolution 3 Appointment of Auditor To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of section 327B(1) • Significant offootprint scale, the Corporations Act 2001 and excellent market (Cth) reputation. (Corporations Act) and for all
Slide 29: Resolution 4
Resolution 4 Approval of Remuneration Report To consider, and if thought fit, to pass the following resolution as an ordinary resolution: • Significant scale, footprint and excellent market reputation. “That the Remuneration Report for the Company required by section 250R(2) of the Corporations Act
Slide 30: Other Business
OTHER BUSINESS
Slide 31: Ainsworth Game Technology
AINSWORTH GAME TECHNOLOGY 10 Holker St, Newington NSW www.agtslots.com
Ainsworth Game Technology — Shareholder Meeting (May 2023) on 6ix