Investor Presentation

Transcription

1 Tony Toohey CEO & Managing Director Investor Presentation August,

2 Disclaimer This document and any oral presentation accompanying it has been prepared in good faith. However, 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 representations and warranties are excluded, and any liability in negligence is excluded, in both cases to the fullest extent permitted by law. No responsibility is assumed for any reliance on this document or the accompanying presentation. Without limiting the above, this document and any accompanying presentation may contain forward looking statements based on estimates, assumptions and expectations of the Company that, while used in good faith, necessarily involve (i) subjective judgments; (ii) inherent uncertainties; and (iii) significant contingencies, many of which are beyond the Company s control or reflect future business decisions which are subject to change. Therefore, there can be no assurance that the Company s actual or future results, or subsequent forecasts, will not vary significantly from such forward looking statements. ebet Limited does not assume any obligation to update any of the estimates, assumptions or expectations underlying such forward looking statements. Certain data included herein has been obtained from alternative external sources and as such may be inconsistent given differing underlying assumptions and sources. Disclosures herein are not intended to be relied upon as advice to investors or potential investors and do not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. 2

3 Company Overview ASX Listed since 1999 (ASX:EBT) Market capitalisation: $28 million Leading gaming technology integrator Head Office in North Ryde, NSW Employees: ~145 Extensive management experience in gaming Clients include casinos, clubs, pubs and bars Network of >48,000 gaming machines (EGMs) across Australia & Asia Commitment to excellence, innovation and superior client service 3

4 Investment Proposition Leading Australian gaming technology company Australia's gaming sector is >198,000 EGMs across 5,700 venues Strong position in chosen sectors & markets History of delivering record results Consistent 16% CAGR revenue growth 1 Focus on annuity revenues: 48% of FY13 revenue 60% of FY13 revenues contracted into FY14 Strong product pipeline with opportunities in new jurisdictions Proven success in monetising new businesses opportunities Strong balance sheet Company offers growth potential and yield 1. ebet Revenues as disclosed FY09-FY13 4

5 FY13 Key Highlights Record FY13 result Consistent revenue growth of 16% p.a. 1 CAGR 48% of FY13 revenues were annuity (recurring) Normalised EPS growth, up 208% 2 Strong product pipeline development Improved Balance Sheet Return of Capital: Maiden dividend of 3.5 cps declared (50% franked) 1 ebet Revenue CAGR as disclosed FY09-FY13 2 Normalised result excludes the proceeds from disposal of ebet Online joint venture interest 5

6 FY13 Results Overview Results Statutory vs. Normalised Basis Due to sale of ebet Online joint venture both Statutory and Normalised results are shown: ebet Online joint venture sold in Dec12 for $9.3 million (50% share) Statutory basis (includes net ebet Online sale proceeds) Normalised basis (excludes ebet Online sale proceeds) STATUTORY RESULTS FY 13 ($M) Change on PCP NORMALISED RESULTS FY 13 ($M) Change on PCP Revenue $ % EBITDA $ % NPBT $ % Revenue $ % EBITDA $ % NPBT $ % 6

7 FY13 Results Overview - Normalised FY 13 ($M) FY 12 ($M) Total Revenue $43.45 $ % Gross Margin $27.0 $ % Expenses $24.1 $22.1 9% EBITDA $6.01 $5.7 +5% NPBT # $2.85 $ % % +/- NPAT # $2.72 $ % Segment Revenue FY 13 ($M) Systems $ % Change on PCP Machines $ % Operations $ % Other $ % 7

8 Balance Sheet Strength FY 13 ($M) FY 12 ($M) % +/- Assets Liabilities Current Assets $24.73 $ % Non-Current Assets $21.04 $ % Total Assets $45.77 $ % Current Liabilities $20.42 $ % Millions $6 $5 $4 $3 FY12 FY13 Non-Current Liabilities $3.69 $ % $2 Total Liabilities $24.11 $ % Net Assets $21.65 $ % Borrowings $3.77 $ % $1 $0 Debt 8

9 Capital Management ebet Online sale delivered gross cash proceeds of $5.8 million Improved cash position by $3.21 million Confidence in strong cash flow, positive outlook and balance sheet strength Maiden return of capital: Maiden dividend of 3.5 cps declared (50% franked) Board reviews capital management on an ongoing basis 9

10 Segment Review GAMING MACHINES GAMING SYSTEMS GAMING OPERATIONS 10

11 Segment Revenue Contribution Other 2% Gaming Machines 17% Gaming Operations 48% Gaming Systems 32% 11

12 Gaming Machines GAMING MACHINES 12

13 Gaming Machines FY13 in Review Sales volumes impacted by delay in transitioning to Australian National Gaming Standards Gaming Machine Sales Revenue FY 13 ($M) Change on PCP Gaming Machines $ % Significant milestone in gaining approval under Australian National Gaming Standards: NSW approval for WMS BB2 and BBXD (machine types) ACT approval to market WMS EGMs South Australian Casino approval to market WMS EGMs Northern Territory approval to market WMS EGMs Launched EGM offering into ACT, SA & NT markets of ~7,000 EGMs 13

14 Gaming Machines FY14 Opportunities Renewed product pipeline Approved Approved Approval Pending 14

15 Gaming Machines FY14 Opportunities Renewed product pipeline Growth in core NSW market and ACT Continued expansion in South Australia, Northern Territory New opportunities in WA Victorian opportunities following move to venue-based licensing 15

16 Gaming Systems GAMING SYSTEMS 16

17 Gaming Systems FY13 in Review Gaming Systems Sales Revenue of $13.96M is generated through the direct sale of ebet s core system technology and the integration of strategic 3 rd party technologies in NSW, QLD, ACT and Asia. ebet Gaming Sales Revenue FY 13 ($M) Change on PCP Systems $ % Key Revenue drivers in FY13 - Metropolis, CARD IT and Engage 17

18 Gaming Systems FY13 in Review CARD IT market share growth continued in FY13 As at 30 June Venues (operational) 8456 EGMs (connected) Surpassing TITO (Ticket In Ticket Out) Installations by more than double Over 243,000 carded players Player acceptance and venue uptake has exceed our expectations and was the primary systems sales revenue driver in FY 13 18

19 Gaming Systems FY14 Opportunities Continued growth in CARD IT system sales in both NSW & QLDˡ Expanded market penetration Product & functionality expansion of Engage media application Continued strategic partner product integration Enter the Victorian gaming market ˡ subject to regulatory approvals 19

20 Gaming Operations GAMING OPERATIONS 20

21 Gaming Operations FY13 in Review Gaming Operations Revenue of $21.04M is the combination of Odyssey Gaming operational (recurring) revenue and ebet Gaming Systems recurring revenues 51% 49% Gaming Operations Revenue FY 13 ($M) Change on PCP Recurring % Odyssey $ % 198% ebet $ % 1100% 21

22 Gaming Operations FY13 in Review Licenced Monitoring Operator in QLD Continued growth in market share to 20% Expanded network to 8,320 gaming machines FY 13 $10.56 M Revenue generated from; Central Monitoring Operations Preventative Service & Maintenance Odyssey Gaming Revenue FY 13 ($M) Change on PCP Systems $ % Linked Jackpots Systems Service & Support Ad Hoc (Do & Charge) 22

23 Gaming Operations FY13 in Review Launched integrated ebet Metropolis Gaming Systems new customers Migration of existing customers to integrated ebet Metropolis Gaming Systems Improved and enhanced system functionality Improved Data capture Improved Player Loyalty Expanded Membership system offering System ready for expanded at machine functionality Launch of the Odyssey Jackpot Solution (OJS) 23

24 Gaming Operations FY13 in Review FY 13 $10.48m Gaming Systems Revenue generated from; Systems IP and Application Licence Fees Systems Hardware Maintenance Fees Systems Software Support Fees ebet Gaming Systems Recurring Revenue FY 13 ($M) Change on PCP Systems $ % 3 rd Party Interface Fees 24

25 Gaming Operations FY14 Opportunities Target market share growth Enter field trials for CARD IT Rollout CARD IT upon achieving regulatory approvals Enter field trials for TITO Rollout TITO upon achieving regulatory approvals Launch Web Services reporting tool myvenue³ 25

26 Gaming Systems FY14 Opportunities Continued growth in CARD IT system sales in both NSW & QLDˡ Expanded market penetration Product & functionality expansion of Engage systems media application Continued strategic partner product integration Enter the Victorian gaming market ˡ subject to regulatory approvals 26

27 Summary Strong position in chosen sectors & markets History of delivering record results Consistent 16% CAGR revenue growth 1 Over 60% of FY13 revenues contracted into FY14 Growth opportunities Return of Capital declared: Maiden dividend of 3.5 cps declared (50% franked) 1. ebet Revenues as disclosed FY09-FY13 27

28 Outlook Positive momentum continues Strong product pipeline Significant opportunities in new jurisdictions Gaming Machines: refreshed and expanded product pipeline Gaming Operations: new products and services resulting in market share growth Gaming Systems: organic growth opportunities in NSW and Qld and new markets opportunities in Victoria Ongoing review between business investment needs and potential returns to shareholders Company offers growth potential and yield 28

29 GAMING MACHINES GAMING SYSTEMS GAMING OPERATIONS Thank You 29

30 Q&A? 30