Ainsworth Game Technology Limited · ASX:AGI
Ainsworth Game Technology — H1 FY2020 Earnings Presentation
29 slides from Ainsworth Game Technology's earnings presentation, February 2020
Slide 1: H1FY20 Results Announcement
H1FY20 Results Announcement Ainsworth Game Technology Limited
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 rep
Slide 3: Agenda
AGENDA 1. CEO’s Address 2. Results Summary 3. Consolidated Results 4. Segment Performance 5. Gaming Products 6. Online 7. Outlook
Slide 4: CEO's Address
CEO’s Address Strengthening AGT for improved results - transition underway • Highly regarded and established recognition across all global markets • Highly regarded and established recognition across all global markets. • Significant scale, footprint and excellent market reputation • Key strategic p
Slide 5: Results Summary
Results Summary H1FY20 results down: • Total sales revenue of $107.3m, decrease of 9% on the pcp • Loss before tax (excluding currency impacts) is -$3.8m, 143% decrease on the pcp • Loss before tax, excluding currency and one off items, -$0.2m, ahead of -$4m guidance • EPS down to -1.2 cents (pcp: 3
Slide 6: Consolidated Results
CONSOLIDATED RESULTS
Slide 7: 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 AINSWORTH GAME TECHNOLOGY LIMITED 7
Slide 8: Profit & Loss summary
Profit & Loss summary • Loss before tax (excluding H1 FY20 AASB 16 H1 FY20 H1 FY19 currency impacts) is $3.8m, 143% A$m Change % Statutory Leases Underlying Underlying decrease on the pcp Domestic revenue 19.5 19.5 19.7 (1%) • Loss before tax, excluding International revenue 87.8 87.8 98.3 (11%) cur
Slide 9: Results adjusted for currency movement and out of ordinary items
Results adjusted for currency movement and out of ordinary items Change A$m H1 FY20 H1 FY19 % (Loss) / Profit Before Tax (4.1) 14.7 (128%) Currency losses / (gains) (before tax) 0.3 (5.8) (105%) Legal costs and settlement claims 3.6 N/A Underlying (Loss) / Profit Before Tax adjusted for currency (0.
Slide 10: Reconciliation: (Loss) / Profit Before Tax to EBITDA
Reconciliation: (Loss) / Profit Before Tax to EBITDA H1 FY20 AASB 16 H1 FY20 H1 FY19 Change A$m Statutory Leases Underlying Underlying % Reconciliation: (Loss) / Profit before tax (4.1) 0.3 (3.8) 14.7 (126%) Net interest (0.5) (0.4) (0.9) (1.6) (44%) Depreciation and amortisation 19.2 (1.2) 18.0 16.
Slide 11: Operating Costs
Operating Costs H1 FY20 Change constant currency H1 FY20 H1 FY19 % basis A$m Sales, service and marketing ('SSM') 31.8 33.3 32.3 3% R&D 20.9 21.4 19.1 12% Administration 11.3 11.6 12.8 (9%) Total Operating costs 64.0 66.3 64.2 3% SSM Costs • Increase due to depreciation recognised for leased assets
Slide 12: Staff Headcount
Staff Headcount Australia and Rest of the World # Staff H1 FY20 H1 FY19 Sales 32 34 Service 72 79 Production 32 33 Administration 37 40 R&D 132 136 Total Staff Numbers - Australia & Rest of the 305 322 World Americas # Staff H1 FY20 H1 FY19 Sales 28 31 Service 55 53 Production 76 80 Administration 5
Slide 13: Net Profit Bridge
Net Profit Bridge • $16.3m decrease in product sales due to reduction in unit sales from international markets • $5.4m decrease in cogs as a direct result of reduction in units sales • $3.8m currency adjusted loss after tax in H1 FY20 (versus $7.2m PAT pcp), excludes $0.2m after tax currency loss (v
Slide 14: Balance Sheet
Balance Sheet H1 FY20 AASB 16 H1 FY20 H1 FY20 A$m FY19 Financial covenants ratios Statutory Leases Underlying Statutory Total assets 478.0 (16.9) 461.1 483.3 Interest ratio - (EBITDA/Interest Expense) 19.2 Net assets 389.9 0.3 390.2 393.5 Gearing ratio - (Debt)/(Debt + Equity) 6.99% Total debt 46.6
Slide 15: Cash Flow Statement
Cash Flow Statement • Decrease in net cash A$m H1 FY20 AASB 16 H1 FY20 H1 FY19 Change Statutory Leases Underlying Underlying operating activities resulting from reduction in profitability Net cash from operating activities* 17.9 (1.3) 16.6 30.8 (14.2) • Increase cash used in Interest received * 0.0
Slide 16: Segment Performance
SEGMENT PERFORMANCE
Slide 17: North America
North America • Consistent profit performance with segment A$m H1 FY20 H1 FY19 Change % profit of $21.3m Revenue 50.7 53.8 (6%) • Despite drop in ASP, improvement in segment Gross Profit 35.4 35.4 0% profit % was assisted by production efficiencies Segment EBITDA 26.6 26.8 (1%) and margin expansion
Slide 18: Latin America
Latin America • Revenue, -8% and profitability, -33% due to A$m H1 FY20 H1 FY19 Change % lower unit volume and game operations fee per day Revenue 32.8 35.7 (8%) Gross Profit 20.7 22.3 (7%) • Challenging economic conditions in Segment EBITDA 13.5 15.5 (13%) Argentina, Peru, Columbia and Chile Segmen
Slide 19: Australia
Australia • Delivered a resilient performance with A$m H1 FY20 H1 FY19 Change % revenue broadly consistent with the pcp Revenue 19.5 19.7 (1%) • Drop in ASP as a result of change in Gross Profit 7.1 7.9 (10%) pricing strategy in this half as part of the Segment EBITDA 3.4 3.4 0% transition to the ne
Slide 20: Rest Of World
Rest Of World • Disappointing results, revenue -51% with A$m H1 FY20 H1 FY19 Change % lower contribution from Europe and Asia Revenue 4.3 8.8 (51%) • Units fell sharply to 73 from 409 (includes Gross Profit 2.8 5.8 (52%) 300 kits to Novomatic) Segment EBITDA 2.4 5.2 (54%) Segment Profit 2.2 5.0 (56%
Slide 21: Gaming Products
2 © > ra So oc a GAMING
Slide 22: Key Highlights
Key Highlights • AGT is well underway in transitioning to a new hardware and game technology suite – FY21 benefits • Delivered a diverse range of new game brands from the portfolio to key markets • North American expansion of the Quick Spin TM portfolio into link and persistence state game segments,
Slide 23: New market leading hardware
New market leading hardware • Executing on our global game strategy with: • Global launch of new AStar TM cabinet range • Incorporates the company’s experience and extensive knowledge of the industry, into a new product for its customers with best-in-class reliability • Meticulously crafted cabinet,
Slide 24: Game Pipeline
Game Pipeline • Release a broad range of new innovative Class III proprietary brands across the AStar TM cabinets including: • Rise Up / Money Up • Ultimate Upgrade • Fiesta Grande • Pan Chang • Cash Quest • Ca$h Stacks • Path to Wealth • Vault of Riches • Expansion of the Class II game portfolio to
Slide 25: Online
ONLINE
Slide 26: Interactive: B2B Online - USA
Interactive: B2B Online - USA Ainsworth continues to expand our content distribution in the US, New Jersey online market via our Remote Gaming Server (RGS). We look to incorporate and launch the latest US land-based game titles online for the first time. Our exclusive agreement in New Jersey with th
Slide 27: Interactive: B2C Online Casino - Mexico
Interactive: B2C Online Casino - Mexico • Mustang Money online casino continues to grow each month. In our tenth month of operation, we have a cumulative player database of 115,000 registered players • Deposits continue to grow as well reaching 10x the amount of deposits in earlier months • Competit
Slide 28: Outlook
Outlook Strengthening AGT for improved results – transition well underway • Highly regarded and established recognition across all global markets • Significant scale, footprint and excellent market reputation • Rationalisation of cost structures for greater efficiencies across the Group • Key strate
Slide 29: Ainsworth Game Technology
AINSWORTH GAME TECHNOLOGY 10 Holker St, Newington NSW www.agtslots.com
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