Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — Investor Presentation (February 2019)
37 slides from Ainsworth Game Technology's investor presentation, Feb 26, 2019
Slide 1: H1FY19 Results Announcement
H1FY19 Results Announcement Ainsworth Game Technology Limited www.agtslots.com.au
Slide 2: 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 repr
Slide 3: Continued execution of a clear strategy: Grow international revenues and higher quality earnings
Continued execution of a clear strategy: Grow international revenues and higher quality earnings CAGR 6% 3
Slide 4: Agenda
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 4
Slide 5: Key Highlights
Key Highlights H1FY19 Results in line with expectations: • Total sales revenue of $118.0m, decrease of 2% on pcp • Profit before tax (excluding currency impacts) is $8.9m, 45% decrease on pcp • EPS up to 3.6 cents (pcp: 2.4 cents) Continued growth in international businesses: • International revenue
Slide 6: Agenda: Consolidated Results
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 6
Slide 7: Profit & Loss Summary
Profit & Loss Summary 6 months to 6 months to • Profit before tax (excluding currency A$m Change (%) 31-Dec-2018 31-Dec-2017 impacts) is $8.9m, 45% decrease on Domestic revenue 19.7 37.1 (47%) pcp • International sales growth +18% v pcp. International revenue 98.3 83.2 18% International sales accoun
Slide 8: Results Adjusted for Currency (Gain) / Loss
Results Adjusted for Currency (Gain) / Loss 6 months to 6 months to Change A$m 31-Dec-2018 31-Dec-2017 (%) PBT 14.7 11.8 25% Currency (gain) / loss (before tax) (5.8) 4.4 232% Adjusted PBT 8.9 16.2 (45%) NPAT 12.1 9.7 25% (1) Currency (gain) / loss (after tax) (4.9) 3.9 226% Adjusted NPAT 7.2 13.6 (
Slide 9: Reconciliation – Profit before Tax to EBITDA
Reconciliation – Profit before Tax to EBITDA 6 months to 6 months to Change A$m 31-Dec-2018 31-Dec-2017 % Reconciliation: Profit before tax 14.7 11.8 25% Net interest (1.6) (1.0) 60% Depreciation and amortisation 16.6 13.8 20% Reported EBITDA 29.7 24.6 21% Foreign currency (gain) / loss (5.8) 4.4 23
Slide 10: Operating Costs
Operating Costs 6 months to 6 months to Change 31-Dec-2018 31-Dec-2017 % Sales, service and marketing ('SSM') 32.3 29.6 9% R&D 19.1 16.5 16% Administration 12.8 9.8 31% Total Operating costs 64.2 55.9 15% • Increase in SSM expenses primarily due to: - Additional depreciation expense due to increase
Slide 11: Staff Headcount
Staff Headcount Australia and Rest of the World # Staff H1 FY19 H1 FY18 Sales 34 37 Service 79 79 Production 33 44 Administration 40 41 R&D 136 130 Total Staff Numbers - Australia & Rest 322 331 of the World Americas # Staff H1 FY19 H1 FY18 Sales 31 30 Service 53 44 Production 80 78 Administration 4
Slide 12: Net Profit Bridge
Net Profit Bridge (1) No tax effect on $2.9m currency gain in H1FY19 (H1FY18: $3.1m currency loss) Calculation of currency (gain)/ loss after tax: H1FY19: ($2.9m + ($2.9m x 0.7) = $4.9m gain), H1FY18: ($3.1m + ($1.2m x 0.7) = $3.9m loss). These currency (gain)/ loss relate to balance sheet translati
Slide 13: Ainsworth at a Glance
Ainsworth at a Glance Revenue Breakdown by Geography 7% 17% m Australia 30% @ North America @ Latin America m Rest of the World Revenue Breakdown by Product Type 4% ™ Product Sales @ Participation/Rental ™ Other Americas Game Operations - Installed Base ™ North America 2,303 Participation/ Rental m
Slide 14: Balance Sheet
Balance Sheet • Strong balance sheet to self fund A$m 31-Dec-18 30-Jun-18 growth strategies Cash 51.7 35.7 • Receivables totalled to $153.0m Receivables 116.8 153.5 (FY18: $192.8m) as a result of Other Current Assets 90.7 84.8 decrease in sales revenue and Total Current Assets 259.2 274.0 payment of
Slide 15: Balance Sheet Ratios
Balance Sheet Ratios Financial covenants ratios CY18 Interest cover ratio - (EBITDA/Interest Expense) 37.26 Gearing Ratio - (Debt)/(Debt + Equity) 14.09% Leverage Ratio - (Debt/EBITDA) 0.88 Debt ratios 31/12/2018 30/06/2018 Debt ratio (Total Liabilities/Total Assets) 20.85% 25.19% Debt to Equity rat
Slide 16: Cashflow Statement
Cashflow Statement • Net cash from operating activities A$m 6 months to 6 months to Change 31-Dec-2018 31-Dec-2017 is $30.8m, resulting from improved working capital management Net cash from operating activities 30.8 6.9 23.9 • Solid closing cash balance of Interest received 2.7 1.7 1.0 $51.7m despi
Slide 17: Agenda: Segment Results - Americas
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 17
Slide 18: Segment Results – North America
Segment Results – North America North America – excellent market A$m 6 months to 6 months to Change (%) 31-Dec-2018 31-Dec-2017 position: Revenue 53.8 38.3 40% • Significant growth is due to Segment Profit 21.6 14.7 47% increased sales of the Quick Spin Segment Profit (%) 40% 38% 2% Product family o
Slide 19: 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 above house average 19
Slide 20: Segment Results – Latin America
Segment Results – Latin America Latin America – consistent strong A$m 6 months to 6 months to Change (%) 31-Dec-2018 31-Dec-2017 performance: Revenue 35.7 36.6 (2%) • Continued delivery of strong and Segment Profit 13.3 13.2 1% stable results in a challenging Segment Profit (%) 37% 36% 1% environmen
Slide 21: Continued Development of Top Performing Brands in Latin America
Continued Development of Top Performing Brands in Latin America Top Performing Brands • All brands listed are performing above house average 21
Slide 22: Agenda: Segment Results - Australia
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 22
Slide 23: Segment Results - Australia
Segment Results - Australia 6 months to 6 months to • New product launches expected A$m Change (%) 31-Dec-2018 31-Dec-2017 to reenergise performance Revenue 19.7 37.1 (47%) • Disappointing results with reduced Segment Profit 2.0 10.2 (80%) ASP due to challenging market Segment Profit (%) 10% 28% (18
Slide 24: Agenda: Segment Results - Rest of the World
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 24
Slide 25: Segment Results – Rest of the World
Segment Results – Rest of the World • Revenue increased by 6%, mainly A$m 6 months to 6 months to Change (%) 31-Dec-2018 31-Dec-2017 contributed by kit sales to Revenue 8.8 8.3 6% Novomatic, generating revenue of Segment Profit 5.0 5.2 (4%) $2.3m Segment Profit (%) 57% 63% (6%) • Online contributed
Slide 26: Agenda: Gaming Products
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 26
Slide 27: Gaming Products – H1FY19 Key Highlights
Gaming Products – H1FY19 Key Highlights • Delivered a diverse range of new approved games to key markets • Continued success and roll out of new Quick Spin titles • Strong approvals and roll out of new game titles in Golden, Crazy Jackpots, Mad Millions, Super Wins and Kanga Cash series 27
Slide 28: Global Gaming Products for H2
Global Gaming Products for H2 Continue executing on our global game strategy to: • Continue development of new licensed games across Class II and Class III with launch of Pac-Man Link and Galaga • Release a broad range of new innovative Class III proprietary Brands across the EVO and A640 cabinets i
Slide 29: Agenda: Regulatory Update
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 29
Slide 30: Regulatory Update
Regulatory Update Continuing strategy to deliver new jurisdictions based on detailed market assessment of commercial opportunities From 1 July 2018 to current, the AGT group secured a new gaming license in Quebec (Canada) and additional tribal gaming licenses in the key commercial markets – Californ
Slide 31: Agenda: Online
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 31
Slide 32: Online and Interactive
Online and Interactive Ainsworth Game Technology has strengthened its portfolio in the online and mobile segments in both regulated real money gaming and social casinos. Ainsworth currently provides our online players the same high-quality games and features as offered in our land- based products al
Slide 33: Online and Interactive
Online and Interactive Real Money Gaming EUROPE • We have 56 approved and certified games throughout Europe via the Ainsworth (RGS) remote gaming servers • Over 30 new Ainsworth game titles are currently in development for 2019 • Ainsworth currently supplies game content to 351 online casino operato
Slide 34: Latin America and Mexico
Latin America and Mexico On February 5th 2019, Ainsworth Game Technology launched its first real money online casino. The casino, MustangMoney.Mx can be played throughout the Mexican regulated gaming market. The Mustang Money casino marks Ainsworth’s first venture into online casino operations in Me
Slide 35: Agenda: Outlook
1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 35
Slide 36: Outlook
Outlook • 1HFY19 results delivered in line with expectations; Profit before tax (excluding currency impacts) of $8.9m • Consistent execution of clear strategies to increase international footprint, invest in technology and grow higher quality revenues - International sales now account for 83% of gro
Slide 37: Ainsworth Game Technology contact details
NSWORTH EXPERIENCE COUNTS” AINSWORTH GAME TECHNOLOGY ABN: 37 068 516 665 10 Holker Street, Newington New South Wales, Australia 2127 T. +612 9739 8000 F. +612 9648 4327 www.agtslots.com.au 37
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