Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — FY2018 Earnings Presentation
35 slides from Ainsworth Game Technology's earnings presentation, Aug 29, 2018
Slide 1: FY18 Annual Results Announcement
For personal use only FY18 Annual Results Announcement Ainsworth Game Technology Limited www.agtslots.com
Slide 2: Disclaimer
Disclaimer For personal use only 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 presentati
Slide 3: Strategy to expand international footprint and higher quality earnings delivering results
Strategy to expand international footprint and higher quality earnings delivering results For personal use only 3
Slide 4: Agenda
For personal use only 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 4
Slide 5: Key Highlights
Key Highlights FY18 Results: • Profit before tax (excluding currency impacts) is $39.2m – delivered on guidance • Total sales revenue of $265.6m, decrease of 6% on pcp For personal use only • EPS of 9.0 cents (PCP: 12.0 cents) • Final dividend declared - 2.5 cents per share fully franked Continued g
Slide 6: Agenda
For personal use only 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. Novomatic Update 10. Outlook 6
Slide 7: Profit & Loss Summary
Profit & Loss Summary • Profit before tax (excluding currency 12 months to 12 months to impacts) is $39.2m A$m Change (%) 30-Jun-2018 30-Jun-2017 For personal use only • Included in results is a gain on sale of Domestic revenue 63.6 74.1 (14%) land of $2.5m pre tax profit and $5.2m International rev
Slide 8: Results Adjusted for Currency (Gain) / Loss
Results Adjusted for Currency (Gain) / Loss 12 months to 12 months to Change A$m 30-Jun-2018 30-Jun-2017 (%) For personal use only PBT 42.3 46.9 (10%) Currency (gain) / loss (before tax) (3.1) 10.5 (130%) Adjusted PBT 39.2 57.4 (32%) NPAT 31.9 37.9 (16%) Currency (gain) / loss (after tax)(1) (2.6) 9
Slide 9: Reconciliation – Profit before Tax to EBITDA
Reconciliation – Profit before Tax to EBITDA 12 months to 12 months to Change A$m 30-Jun-2018 30-Jun-2017 % For personal use only Reconciliation: Profit before tax 42.3 46.9 (10%) Net interest (2.3) (2.4) 4% Depreciation and amortisation 28.0 25.8 8% Reported EBITDA 68.0 70.3 (3%) Foreign currency (
Slide 10: Operating Costs
Operating Costs 12 months to 12 months to Change A$m 30-Jun-2018 30-Jun-2017 % For personal use only Sales, service and marketing ('SSM') 59.6 52.1 14% R&D 34.4 34.2 1% Administration 23.3 26.2 (11%) Total Operating costs 117.3 112.5 4% 4% increase in total costs with resources reallocated to revenu
Slide 11: Staff Headcount
Staff Headcount Australia and Rest of the World # Staff FY18 FY17 For personal use only Sales 35 38 Service 83 80 Production 43 43 Administration 42 42 R&D 134 136 Total Staff Numbers - Australia & Rest 337 339 of the World Americas # Staff FY18 FY17 Sales 31 33 Service 52 48 Production 78 70 Admini
Slide 12: Net Profit Bridge
Net Profit Bridge For personal use only (1) No tax effect on $1.5m currency gain in FY18 (FY17: $7.5m currency loss) Calculation of currency (gain)/ loss after tax: FY18: ($1.5m + ($1.6m x 0.7) = $2.6m gain), FY17 ($7.5m + ($3m x 0.7) = $9.7m loss). These currency (gain)/ loss relate to balance shee
Slide 13: Ainsworth at a Glance
Ainsworth at a Glance For personal use only 13
Slide 14: Balance Sheet
Balance Sheet • Strong balance sheet to self fund A$m 30-Jun-18 30-Jun-17 For personal use only growth strategies Cash 35.7 21.1 • A$90m multi-option facility Receivables 153.5 128.6 arrangement extended to 30 Other Current Assets 84.8 87.3 September 2021 Total Current Assets 274.0 237.0 • Receivabl
Slide 15: Balance Sheet Ratios
Balance Sheet Ratios For personal use only Financial covenants ratios FY18 Interest cover ratio - (EBITDA/Interest Expense) 43.05 Gearing Ratio - (Debt)/(Debt + Equity) 15.92% Leverage Ratio - (Debt/EBITDA) 1.05 Debt ratios 30/06/2018 30/06/2017 Debt ratio (Total Liabilities/Total Assets) 25.19% 25.
Slide 16: Cashflow Statement
Cashflow Statement • Net cash from operating activities 12 months to 12 months to For personal use only A$m Change is $18.4m, resulting from 30-Jun-2018 30-Jun-2017 improved working capital management Net cash from operating activities 18.4 5.2 13.2 Interest received 3.9 3.7 0.2 • Increase in net ca
Slide 17: Agenda
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 17
Slide 18: Segment Results – North America
Segment Results – North America North America – consolidating market For personal use only position: North America 12 months to 12 months to A$m Change (%) • Slight revenue growth driven by 30-Jun-2018 30-Jun-2017 strong ASP and increased win per Revenue 105.7 101.4 4% Segment Profit 40.7 44.6 (9%)
Slide 19: Continued Development of Top Performing Brands in North America
Continued Development of Top Performing Brands in North America Top Performing Brands For personal use only • All brands listed are performing at an average index of 1.0x to 3.1x of house average based on sample data obtained from customers 19
Slide 20: Segment Results – Latin America
Segment Results – Latin America Latin America For personal use only Latin America: 12 months to 12 months to • Solid growth in gaming operations A$m Change (%) 30-Jun-2018 30-Jun-2017 installing 1,600 new units. Converted Revenue 78.7 78.5 - to sale 900 existing units for a net Segment Profit 30.6 3
Slide 21: Continued Development of Top Performing Brands in Latin America
Continued Development of Top Performing Brands in Latin America For personal use only Top Performing Brands • All brands listed are performing at an average index of 1.5x to 3.4x and above of house average based on sample data obtained from customers 21
Slide 22: Agenda
For personal use only 1. Results Highlights 2. Consolidated Results 3. Segment Results - Americas 4. Segment Results - Australia 5. Segment Results - Rest of the World 6. Gaming Products 7. Regulatory Update 8. Online 9. Outlook 22
Slide 23: Segment Results - Australia
Segment Results - Australia For personal use only • Successful launch of EVO cabinet 12 months to 12 months to A$m Change (%) and Golden CashTM game series 30-Jun-2018 30-Jun-2017 driving improvement in market Revenue 63.6 74.1 (14%) Segment Profit 19.4 24.0 (19%) share. NSW share increased to Segme
Slide 24: Agenda
For personal use only 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 For personal use only 12 months to 12 months to • Revenue drop due to lower Asia, NZ A$m Change (%) 30-Jun-2018 30-Jun-2017 and Europe sales compared to pcp Revenue 17.6 28.1 (37%) Segment Profit 10.4 15.0 (31%) • Online contributed $4.1m in Segment Profit (%) 59%
Slide 26: Agenda
For personal use only 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 – FY18 Key Highlights
Gaming Products –FY18 Key Highlights • Launch of 70 new game titles into key class II and class III markets For personal use only • Continued global rollout of the EVO cabinet • Enhanced core product offerings through a diversified range of game mechanics 27
Slide 28: Server Based Gaming Products – Highlights
Server Based Gaming Products – Highlights For personal use only • Delivered Electronic Scratch Ticket System in Washington State • Completed Four Winds Casino install which included 270 units • Historical Horse racing system for Churchill Down was approved, which included 900 units and over 60 games
Slide 29: Global Gaming Products for FY19
Global Gaming Products for FY19 Continue executing on our global game strategy to: For personal use only • Launch eight major proprietary brands with a balanced diversified portfolio • Schedule rollout of 75 new proprietary titles across the EVO and A640 cabinets • Rollout of 45 new and ported title
Slide 30: Agenda
For personal use only 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 30
Slide 31: Regulatory Update
Regulatory Update Continuing strategy to deliver new jurisdictions based on detailed market assessment of For personal use only commercial opportunities From 1 July 2017 to current, the AGT group has secured new tribal gaming licenses in the key commercial markets – California, Colorado, North Dakot
Slide 32: Agenda
For personal use only 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 32
Slide 33: Online and Social
Online and Social Real Money Gaming: • Focus on expanding our content offerings into the North and Latin American markets For personal use only with a primary focus on New Jersey and Mexico • Announced online agreement with GVC to launch exclusive Ainsworth casino content for the first time in New J
Slide 34: Agenda
For personal use only 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 34
Slide 35: Outlook
Outlook • Purposeful strategies to regain market share, expand international footprint, invest in game technologies and drive higher quality earnings are expected to result in improvement in financial For personal use only results • Leverage off Nova Technologies system and game design expertise to
Ainsworth Game Technology — FY2018 Earnings Presentation on 6ix