Entertainment Gaming Asia — Investor Presentation (November 2013)
33 slides from Entertainment Gaming Asia's investor presentation, Nov 25, 2013
Slide 1: Serving the Frontier Gaming Markets in Asia
1 Serving the Frontier Gaming Markets in Asia November 2013 (NASDAQ: EGT)
Slide 2: Safe Harbor Language
Safe Harbor Language Forward Looking Statements: This presentation contains forward - looking statements concerning Entertainment Gaming Asia Inc. (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as a
Slide 3: Company Overview
Company Overview 3 ▪ Entertainment Gaming Asia Inc. (the “Company” or “we”) is a leading gaming company focused on emerging gaming markets in Asia. ▪ We seek to capitalize on growth opportunities in Asian gaming markets and ensure growth is driven by multiple revenue sources through our three - pron
Slide 4: Company Overview: Melco Group structure
Company Overview 4 Melco Group (200.HK) Lottery Business Ski Resort Business Catering Business Orient Regent Russia Gaming Business MelcoLot (HKEx: 8198.HK) Jumbo Melco Crown Entertainment Limited (NASDAQ: MPEL; HKEx: 6883.HK) City of Dreams – Premium Mass Market Altira Macau – VIP Market Mocha – Gr
Slide 5: A Transformed Company with Quality Recurring Cash Flow
5 A Transformed Company with Quality Recurring Cash Flow Successful Turnaround ▪ Over the past several years, we successfully completed a turnaround and repositioning through: ▪ Refocusing slot operations on the highest - potential properties ▪ Expanding gaming strategy to include casino development
Slide 6: Successful Turnaround
6 Successful Turnaround (1) In March 2013, the Company sold the legacy non - gaming operations. Consolidated revenue and adjusted EBITDA figures above include these discontinued operations and are consistent with previously filed SEC Forms 10 - Q and 10 - K for the respective periods. (2) Gaming rev
Slide 7: Three-Pronged Approach
7 Three - Pronged Approach • Focus: Cambodia and the Philippines • Provides quality recurring cash flows • Establishes presence and goodwill in key markets Gaming Operations Gaming Products Slot Operations (Participation) Casino Operations Gaming Chips and Plaques and Related Products • Focus: Indo
Slide 8: Market Data
8 Market Data FDI Population 2012 2012-17 2007-12 2012 2007-12 Country (in millions) CAGR CAGR (1) (in millions) CAGR Indo-China Region and the Philippines Cambodia 15.4 14.2 10.3% 13.3% 3.6 12.2% Laos 6.5 9.2 10.0% 9.9% 3.3 15.4% Thailand 64.7 365.6 9.4% -5.3% 22.3 9.0% Vietnam 91.5 138.1 9.8% 25.4
Slide 9: Indo-China – Slot Operations and Casino Development
9 Indo - China – Slot Operations and Casino Development Dreamworld Poipet Dreamworld Pailin Dreamworld at Thansur Bokor NagaWorld ▪ Indo - China region, which comprises Cambodia, Laos, Myanmar, Thailand and Vietnam, has a combined total of over 240 million people. ▪ Favorable macro environment in th
Slide 10: Cambodia – NagaWorld Slot Operations
10 Cambodia – NagaWorld Slot Operations
Slide 11: Cambodia – NagaWorld Slot Operations
11 Cambodia – NagaWorld Slot Operations
Slide 12: Cambodia – NagaWorld Slot Operations
12 ▪ Our operations target t ourists and growing population of expatriates and foreign passport holders living in the area. ▪ We have 670 EGM seats under contract in prime ground floor slot spaces inside NagaWorld’s casino and resort. ▪ We jointly manage and operate our EGMs with NagaWorld and we an
Slide 13: Cambodia – Thansur Bokor Slot Operations
13 Cambodia – Thansur Bokor Slot Operations
Slide 14: Cambodia – Thansur Bokor Slot Operations
14 Cambodia – Thansur Bokor Slot Operations
Slide 15: Cambodia – Thansur Bokor Slot Operations
15 ▪ Thansur Bokor Resort and Casino is a five - star resort developed by leading Cambodian hotelier, Sokha Hotels and Resorts. ▪ Sokha Hotels and Resorts, owned by major Cambodian conglomerate Sokimex, has multiple properties in operation and several in development, including a major hotel in Phnom
Slide 16: Cambodia – Dreamworld Poipet Slot Operations
16 Cambodia – Dreamworld Poipet Slot Operations
Slide 17: Cambodia – Dreamworld Poipet Slot Operations
17 Cambodia – Dreamworld Poipet Slot Operations
Slide 18: Cambodia – Dreamworld Poipet Slot Operations
18 ▪ We developed and operate Dreamworld Poipet, a stand - alone slot hall to an existing casino in a prominent location in Poipet in Northwestern Cambodia near the Thailand border. ▪ Our casino owner partner is a division of ANCO Group, a major conglomerate in Cambodia, which holds many hotel prope
Slide 19: Cambodia – Dreamworld Pailin Casino
19 Cambodia – Dreamworld Pailin Casino
Slide 20: Cambodia – Dreamworld Pailin Casino
20 Cambodia – Dreamworld Pailin Casino
Slide 21: Cambodia – Dreamworld Pailin Casino
21 ▪ Dreamworld Pailin, which opened in May 2012, is our first casino development project. ▪ Located in the Pailin Province in Northwestern Cambodia at the Thailand border at a growing trade route between the countries with solid infrastructure (approximately five hours from Phnom Penh and four hour
Slide 22: Philippines – Slot Operations
22 Philippines – Slot Operations Club Leisureworld , Pampanga Club Universal, Sta. Cruz Club San Pedro, Laguna
Slide 23: Philippines – Slot Operations
23 Philippines – Slot Operations
Slide 24: Philippines – Slot Operations
24 ▪ We have participation contracts with three venues located in the greater Manila area targeting local players in their respective neighborhoods. ▪ Our venues house approximately 140 to 220 EGM seats per location. ▪ Our revenue share of the WUD ranges from 15% to 35%. ▪ The typical initial term f
Slide 25: Gaming Operations Growth Opportunities
25 ▪ We are actively seeking new projects in our existing markets where we have established relationships, market presence and brand equity . ▪ New projects in the form of : ▪ Slot participation □ New contracts for placement of gaming machines on a revenue sharing basis in casinos, resorts, hotels a
Slide 26: Hong Kong – Gaming Products
26 Hong Kong – Gaming Products
Slide 27: Hong Kong – Gaming Products: Dolphin chips and plaques
27 ▪ Under our Dolphin brand, we are one of a few manufacturers of traditional (non - RFID) and RFID gaming chips and plaques. ▪ We provide a full suite of product offerings of casino currency (gaming chips and plaques) with leading - edge, currency grade security features. ▪ Dolphin has patents or
Slide 28: Hong Kong – Casino Currency
28 ▪ In 2013, we relocated the gaming chip and plaque manufacturing plant to Hong Kong from Australia. ▪ Our new high - security facilities are located at the new corporate headquarters in Shatin, Hong Kong. ▪ Benefits of relocation include: ▪ Positions operations closer to customers and high - grow
Slide 29: Growth potential from new casino developments
29 Sources: Respective company reports, news sources Note: Bolded projects represent those developed by Melco/Crown group (1) The number of tables for projects in Macau represent figures previously reported by the respective companies and some rem ain subject to confirmation by the Macau government.
Slide 30: Hong Kong – Gaming Products Distribution
30 ▪ We seek to expand our product line of gaming products, which offers incremental growth opportunities and the ability to improve competitive positioning with customers. ▪ We have a distribution agreement with LT Game Limited, a leading supplier of electronic multi - game machines and equipment i
Slide 31: Experienced Management Team
31 Our experienced management team has strong relationships and understanding of the regulatory, political and social dynamics in Asia. ▪ Clarence Chung (Chairman and Chief Executive Officer) ▪ Joined Entertainment Gaming Asia’s board in October 2007 and served as chairman since August 2008 ▪ Assume
Slide 32: Recent Results
32 Recent Results ▪ During the first nine months of 2013, we made progress in our efforts to enhance the potential for our businesses by: ▪ Expanding our slot operations business with the opening of another Dreamworld property in a dynamic regional gaming market in Cambodia; ▪ Divesting a low - marg
Slide 33: Investment Highlights
33 ▪ Targeting emerging Asian gaming markets which we believe to be under - served and poised for growth with attractive economic trends and strong demand. ▪ Slot operations offer r ecurring daily or monthly revenue model with compelling cash flow potential. ▪ Successful operations at NagaWorld in C
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