Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — FY2021 Earnings Presentation
32 slides from Ainsworth Game Technology's earnings presentation, Aug 26, 2021
Slide 1: Results for Full Year Ended 30 June 2021 – Annual Results 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 26 August 2021 ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 ELECTRONIC LODGEMENT Results for Full Year Ended 30 June 2021 – Annual Result
Slide 2: FY21 Investor Presentation
FY21 INVESTOR PRESENTATION Ainsworth Game Technology Limited ABN 37 068 516 665 ASX Code: AGI 26 August 2021
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 rep
Slide 4: Agenda
1. Results Summary AGENDA 2. Consolidated Results 3. Segment Performance 4. Land Based Gaming Products 1. Results Summary 5. Online 2. Consolidated Results 6. Outlook 3. Segment Performance 4. Land Based Gaming Products 5. Online 6. Outlook
Slide 5: Results Summary
RESULTS SUMMARY
Slide 6: Results Summary
Results Summary • Final audited results are consistent with pre-announced results on 12 August 2021 without any material revisions. 6 months to 6 months to 12 months to 12 months to A$m 30 Dec 2020 30 Jun 2021 30 Jun 2021 30 Jun 2020 Revenue 72.1 87.4 159.5 149.4 Adjusted EBITDA 1.1 14.4 15.5 5.8 Im
Slide 7: Gaming Operations and International Sales Contribution
Gaming Operations and International Sales Contribution AINSWORTH GAME TECHNOLOGY LIMITED 6
Slide 8: Consolidated Results
CONSOLIDATED RESULTS
Slide 9: Profit & Loss Summary
Profit & Loss Summary • Increased revenue due to recovery in North America and 12 months to 12 months to Australia and Rest of the World. A$m Change (%) 30 Jun 2021 30 Jun 2020 Domestic revenue 39.0 28.3 38% • Increased domestic revenue compared to pcp. ✓ Increased sales in NSW, QLD, NT & SA; and In
Slide 10: Results Adjusted For Currency Movement and One-off Items
Results Adjusted For Currency Movement and One-off Items 12 months to 12 months to A$m H1 FY21 H2 FY21 30 Jun 2021 30 Jun 2020 Loss Before Tax (56.6) (2.6) (59.2) (48.8) Currency losses / (gains) 13.4 (1.9) 11.5 (1.2) Impairment losses 29.2 12.5 41.7 16.1 JobKeeper subsidies (4.2) - (4.2) (2.8) Gain
Slide 11: Results Adjusted For Currency Movement and One-off Items (cont.)
Results Adjusted For Currency Movement and One-off Items (cont.) 12 months to 12 months to A$m H1 FY21 H2 FY21 30 Jun 2021 30 Jun 2020 Loss After Tax (50.1) (3.3) (53.4) (43.4) (1) Currency losses / (gains) 10.8 (1.5) 9.3 (0.8) (2) Impairment losses 25.7 9.2 34.9 14.7 (3) JobKeeper subsidies (2.9) -
Slide 12: Reconciliation: Loss Before Tax to EBITDA & Underlying EBITDA
Reconciliation: Loss Before Tax to EBITDA & Underlying EBITDA 6 months to 6 months to 12 months to 12 months to Change A$m 30 Dec 2020 30 Jun 2021 30 Jun 2021 30 Jun 2020 % Reconciliation: Loss Before Tax (56.6) (2.6) (59.2) (48.8) (21%) Net expense / (income) 0.7 0.6 1.3 (0.2) (750%) Depreciation a
Slide 13: Operating Costs
Operating Costs 12 months to 30 Jun 2021 12 months to 12 months to Change constant 30 Jun 2021 30 Jun 2020 (%) A$m currency basis COGS 74.0 70.0 59.0 (19%) Sales, service and marketing ('SSM') 50.2 46.2 59.3 22% R&D 34.8 33.4 41.2 19% Administration 19.9 18.8 22.2 15% Total Operating costs 178.9 168
Slide 14: Staff Headcount
Staff Headcount Australia and Rest of the World # Staff 30 Jun 2021 30 Jun 2020 Sales 33 32 Service 56 67 Production 28 28 Administration 30 34 R&D 110 127 Total Staff Numbers - Australia & Rest of the World 257 288 Americas # Staff 30 Jun 2021 30 Jun 2020 Sales 28 24 Service 49 46 Production 36 41
Slide 15: Net Profit Bridge
Net Profit Bridge • Revenue increased mainly from gaming operations and recurring connection fees from HHR. • $15.6m decrease in overheads as a result of actions instigated to effectively manage and control operational expenses and government subsidies. • $22.7m increase in other expenses relates to
Slide 16: Balance Sheet
Balance Sheet As at 30 Jun As at 30 Jun A$m 2021 2020 As at 30 Jun As at 30 Jun Debt Ratios 2021 2020 Total assets 393.1 465.5 Debt Ratio (Total Liabilities/Total Assets) 26.76% 23.82% Net assets 287.9 354.6 Debt to Equity Ratio (Total Liabilities/Total 36.54% 31.27% Equity) Total debt 37.3 44.0 Cas
Slide 17: Cash Flow Statement
Cash Flow Statement As at 30 Jun As at 30 Jun A$m Change 2021 2020 • Strong cash flows, along with effective management of operational expenses, resulted in an increase of Net cash from operating activities 22.2 16.7 5.5 60% cash held at the reporting date Proceeds from sale of property, plant and o
Slide 18: Segment Performance
SEGMENT PERFORMANCE
Slide 19: North America
North America • Increased profit margin by 9% as market recovers A$m 12 months to 12 months to Change (%) from pandemic and delivered an improved revenue 30 Jun 2021 30 Jun 2020 and effective cost control management in place. Revenue 88.5 72.1 23% Gross Profit 60.1 50.0 20% • Strong growth with $47.
Slide 20: MTD Gaming
MTD Gaming • Since acquisition in March 2020, MTD has had a positive impact on revenue within the North American segment and provide avenues of future growth in premium performing Poker, Keno and Video Reel content. • In Oct 2020, a three-year agreement was executed with Golden Entertainment, provid
Slide 21: Latin America
Latin America • Revenue reduction of 56% compared to pcp due to A$m 12 months to 12 months to Change (%) severe impacts of high COVID-19 transmission rates 30 Jun 2021 30 Jun 2020 resulting in further government mandated closures Revenue 18.3 42.0 (56%) and access restrictions to customers’ venues i
Slide 22: Australia
Australia • Improved performance from new hardware and A$m 12 months to 12 months to Change (%) recently released game titles resulted in increased 30 Jun 2021 30 Jun 2020 revenue compared to the pcp. Revenue 39.0 28.3 38% ✓ $19.8m revenue in H2 FY21 increased 3% Gross Profit 10.6 9.4 13% compared t
Slide 23: Rest of the World
Rest of the World • Increased revenue, EBITDA, and gross profit A$m 12 months to 12 months to Change (%) compared to pcp due to higher units sale of A-STARTM 30 Jun 2021 30 Jun 2020 and refurbished machines. Revenue 13.7 7.0 96% Gross Profit 7.8 5.2 50% • Continuous challenging times within the Asia
Slide 24: Land Based Gaming Products
LAND BASED GAMING PRODUCTS
Slide 25: Key Market Highlights
Key Market Highlights Americas Australasia • HHR Growth - More than 1,000 units placed in • Strong installs of Player’s Paradise Grand in Kentucky, Virginia and Alabama. major markets of New South Wales and Queensland • MTD Acquisition led to 150 additional Gambler’s GoldTM units placed in the US in
Slide 26: H1 FY22
H1 FY22 Americas Australasia • New A-STARTM XL Premium • Installs of Cash StacksTM game Cabinet to install on USA casino series across the Australian market. floors prior to G2E trade show with “Take It or Leave It” Quick Spin • Continued installs of Electric game series – our first unique CashTM wi
Slide 27: Online
ONLINE
Slide 28: B2B Real Money Gaming (RMG) USA
B2B Real Money Gaming (RMG) USA • Ainsworth has been approved and licensed to supply online content for the US digital market in the states of: 1. New Jersey 2. Michigan 3. Pennsylvania 4. West Virginia • We have signed multi-state agreements for i-gaming with BetMGM, Borgata Casino, Party Casino, G
Slide 29: B2B Real Money Gaming (RMG) Rest of World & Social Casinos
B2B Real Money Gaming (RMG) Rest of World & Social Casinos • Ainsworth Interactive has developed and certified 80 games which are live and operational throughout the European and UK jurisdictions of: 1. Alderney 5. Spain 2. Gibraltar 6. Sweden 3. Italy 7. UK 4. Romania • In addition, we are expandin
Slide 30: Outlook
OUTLOOK
Slide 31: Outlook / Conclusion
Outlook / Conclusion Improved H2 FY21 performance lays foundations for FY22. Balance sheet strengthened to enable AGT to develop superior games and hardware, and maintain distribution network. • Proactive steps have been undertaken to ensure that the Group can endure the longer term challenges if ne
Slide 32: Ainsworth Game Technology
AINSWORTH GAME TECHNOLOGY 10 Holker St, Newington NSW www.agtslots.com
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