Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — Shareholder Meeting (May 2024)
33 slides from Ainsworth Game Technology's shareholder meeting presentation, May 29, 2024
Slide 1: 2024 Annual General Meeting
2024 ANNUAL GENERAL MEETING 29 MAY 2024 AINSWORTH GAME TECHNOLOGY LIMITED
Slide 2: Agenda
AGENDA 1. Welcome 2. Introduction of Board of Directors 3. Chairperson’s Address 4. Chief Executive Officer’s Address 5. Formal Business 6. Other Business 2
Slide 3: 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 29 MAY 2024 3
Slide 4: Chairperson's Address
CHAIRPERSON’S ADDRESS Presentation by DANNY GLADSTONE
Slide 5: 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 to the 12 months ended 31 December 2022 (“PCP”). • North America continues to be the strongest segment performer, contributing
Slide 6: 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 7: Game Operations
Game Operations with recurring revenues and steady international sales contribution ANNUAL GENERAL MEETING 29 MAY 2024 7
Slide 8: 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) 33% 33% Cash flow to debt ratio - (Cash flow from operating 27% 15% activities / Total liabilities) In millions of AUD 31-Dec-23 31-Dec-22 Total
Slide 9: Chief Executive Officer's (CEO) Address
CHIEF EXECUTIVE OFFICER’S (CEO) ADDRESS Presentation by HARALD NEUMANN
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 78.5 70.5 8.0 36.7 Segment Profit 65.0 59.3 5.7 30.9 Segment Profit (
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 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: 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 24: 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 25: Conclusion
CONCLUSION We
Slide 26: Conclusion
Conclusion • Good momentum and expected PBT (excluding currency and one-off items) for the six months ending 30 June 2024 within the range of $13 million - $15 million. • Earnings uplift expected across key markets in the second half of FY24 compared to the first half. • AGT’s North American busines
Slide 27: Formal Business
FORMAL BUSINESS
Slide 28: 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 financial year ended 31 December 2023. • Significant scale, footprint and excellent market reputation. In attendance is Mr David Sartorio from Deloitt
Slide 29: Resolution 1
Resolution 1 Re-election of Mr. Daniel Eric Gladstone, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: • Significant “That Mr. Daniel Eric Gladstone, scale, who retires in footprint and excellent accordance market with Rule reputation. 7.1(f)
Slide 30: Resolution 2
Resolution 2 Election of Dr. Colin John Henson, as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Colin John Henson, • whoSignificant retiresscale, footprint and excellent in accordance with Rulemarket reputation. 7.1(f) of the Company
Slide 31: Resolution 3
Resolution 3 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 32: Other Business
OTHER BUSINESS
Slide 33: Ainsworth Game Technology Limited
AINSWORTH GAME TECHNOLOGY Limited 10 Holker St, Newington NSW www.agtslots.com
Ainsworth Game Technology — Shareholder Meeting (May 2024) on 6ix