Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — FY2023 Earnings Presentation
34 slides from Ainsworth Game Technology's earnings presentation, Feb 29, 2024
Slide 1: Results (unaudited) for Twelve Months Ended 31 December 2023 – Investor 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 29 February 2024 ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 ELECTRONIC LODGEMENT Results (unaudited) for Twelve Months Ended 31 Decembe
Slide 2: Investor's Presentation
Investor’s Presentation Results (unaudited) for 12 months ending 31 December 2023 Ainsworth Game Technology Limited 1 ABN 37 068 516 665 | ASX Code: AGI
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 • Consolidated Results • Segment Performance • Land Based Gaming Products • Global Digital Gaming • Conclusion 3
Slide 5: Results Summary
Results Summary 4
Slide 6: Results Summary
Results Summary • Profit before Tax excluding currency and one-off items, of $41.5m for the 12 months ended December 2023 (“Current period”), an improvement of 10% compared the 12 months ended 31 December 2022 (“PCP”). • North America continues to be the strongest segment performer, contributing 49%
Slide 7: Gaming Operations
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 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Domestic revenue 39.8 45.4 (5.6) 23.2 International revenue 245.1 198.2 46.9 100.9 Total revenue 284.9 243.6 41.3 124.1 Gross profit 175.3
Slide 10: Results Adjusted for Currency Movement and One-off Items
Results Adjusted for Currency Movement and One-off Items 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Profit Before Tax 2.6 9.2 (6.6) 7.3 Foreign currency losses / (gains) 21.5 (2.6) 24.1 2.1 GAN exclusivit
Slide 11: Reconciliation: Profit Before Tax to EBITDA & Underlying EBITDA
Reconciliation: Profit Before Tax to EBITDA & Underlying EBITDA 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Reconciliation: Profit Before Tax 2.6 9.2 (6.6) 7.3 Net interest income (6.3) (4.1) (2.2) (3.3) D
Slide 12: Operating Costs
Operating Costs 12 months 12 months 6 months 12 months to ended ended ended 31 Dec 2023 CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 at CY22 currency In millions of AUD (CY23) (CY22) (H2 CY22) basis COGS 109.6 92.7 16.9 44.4 106.4 Sales, service and marketing ('SSM') 64.5 58.1 6.4 31.1 62.1 R&D
Slide 13: Staff Headcount
Staff Headcount # Staff 31-Dec-23 30-Jun-23 31-Dec-22 Australia and Rest of the World Sales 32 31 31 Service 56 56 51 Production 31 30 26 Administration 21 22 22 R&D 98 96 97 Total Staff Numbers - Australia & Rest of the World 238 235 227 Americas Sales 30 27 31 Service 64 63 61 Production 58 58 53
Slide 14: Net Profit Bridge – CY22 to CY23
Net Profit Bridge – CY22 to CY23 • Revenue increase across most markets but predominately in Latin America and North America as well as increase in online revenue as a result of GAN contract occurred during the current period. • $16.5m increase in overheads from increased development initiatives und
Slide 15: Balance Sheet
Balance Sheet Debt Ratios 31-Dec-23 31-Dec-22 Debt ratio (Total liabilities / Total assets) 25% 25% Debt to equity ratio (Total liabilities / Total equity) 34% 33% Cash flow to debt ratio - (Cash flow from operating 26% 15% activities / Total liabilities) In millions of AUD 31-Dec-23 31-Dec-22 Total
Slide 16: Cash Flow Statement
Cash Flow Statement • Cash balance as at 31 December 2023 was affected by payments for investments in Argentina to hedge the rapid devaluation of Pesos against USD. • Improvement in operating activities cash flow driven by discipline working capital management. 12 months 12 months 6 months ended end
Slide 17: Segment Performance
Segment Performance 16
Slide 18: North America
North America 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Revenue 140.4 120.2 20.2 59.7 Gross Profit 94.8 82.2 12.6 43.4 Segment EBITDA 77.3 70.5 6.8 36.7 Segment Profit 65.0 59.3 5.7 30.9 Segment Profit (
Slide 19: North America Product Highlight
North America Product Highlight • Strong performance of new Squish ReelsTM game in South Dakota and Louisana. • Nevada / Class III product updated for better presentation and player attractiveness. Initial installations indicate that performance has improved and additional installs occurring in CY20
Slide 20: Latin America & Europe
Latin America & Europe 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Revenue 80.1 63.4 16.7 33.1 Gross Profit 50.0 40.2 9.8 21.8 Segment EBITDA 32.3 19.7 12.6 9.7 Segment Profit 33.1 21.1 12.0 10.4 Segment P
Slide 21: Asia Pacific (Australia, NZ and Asia)
Asia Pacific (Australia, NZ and Asia) 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Revenue 48.8 47.7 1.1 24.9 Gross Profit 14.9 15.5 (0.6) 8.0 Segment EBITDA 4.1 6.6 (2.5) 3.1 Segment Profit 3.4 5.1 (1.7) 2
Slide 22: Online
Online 12 months 12 months 6 months ended ended ended CY23 vs CY22 31 Dec 2023 31 Dec 2022 31 Dec 2022 In millions of AUD (CY23) (CY22) (H2 CY22) Revenue 15.6 12.3 3.3 6.4 Gross Profit 15.6 12.3 3.3 6.4 Segment EBITDA 14.0 10.8 3.2 5.5 Segment Profit 14.0 10.8 3.2 5.5 Segment Profit (%) 90% 88% 2% 8
Slide 23: Land Based Gaming Products
Land Based Gaming Products 2 22 2
Slide 24: Key Market Highlights
Key Market Highlights NORTH AMERICA • A-STAR Raptor Cabinet launched in US in late December 2023. Current metrics from Eilers Report show it is the #1 Performing New Upright Cabinet in the market with performance above 2.5x. Cabinets released in select markets only with full release in Q1-Q2 2024. •
Slide 25: Key Market Highlights
Key Market Highlights LATIN AMERICA • A-STAR Series cabinet has over 2,000 recurring revenue units in market performing on average 1.31x in route. • Xtension Link in our link library still one of top performing products in market. • Newly released Eilers LATAM market report, Ainsworth held the #1 an
Slide 26: Key Market Highlights
Key Market Highlights Asia Pacific • Grand Fortune continues to show solid and consistent performance across NSW and QLD with over 1,200 installs and above floor performance after 12 months. The brand now consists of six games and will shortly be released in the Philippines • The new A-STAR 100 cabi
Slide 27: Game Development Investments
Game Development Investments Clear Product Strategy • Expanding the A-STAR Raptor launch throughout the year with exclusive library content and flexibility to bring forward classic games for increased operator choice. • Continue on globalisation utilising key tentpole products – San Bao , Grand Fort
Slide 28: Game Development Investments
Game Development Investments Growth in R&D Pipelines • Launching of new Unity engine into Class III and Class II markets in North America and LATAM • Continuing investments on Next-Gen math builder, improved support for new rapid prototyping, game features, analytics and profiling. • Focused investm
Slide 29: Global Digital Gaming
Global Digital Gaming 28
Slide 30: B2B Real Money Gaming (RMG)
B2B Real Money Gaming (RMG) Ainsworth Interactive delivered on its 2023 online game development commitments with our US exclusive partner GAN. This partnership has driven Ainsworth’s growth in the US iGaming segment by expanding distribution of our global omni-channel product portfolio with online c
Slide 31: Social Casinos
Social Casinos Our partnership with Zynga's Hit It Rich! has been nothing short of transformative, combining our innovative game content with their extensive reach and expertise in the social gaming sphere. Together, we have established a formidable presence in the competitive landscape of social ca
Slide 32: Conclusion
Conclusion 31
Slide 33: Conclusion
Conclusion • Revenue improvements across American markets compared to PCP. AGT enters the calendar year 2024 with good momentum and expects to have continued growth in North America. • Release of Raptor and A-STAR 100 with a range of innovative product suites at local gaming shows were well received
Slide 34: Ainsworth Game Technology
Ainsworth Game Technology 10 Holker St, Newington NSW www.agtslots.com 33 *All trademarks, logos and brand names are the properties of their respective owners
Ainsworth Game Technology — FY2023 Earnings Presentation on 6ix