Ainsworth Game Technology Limited (AGI) 2024年年度報告「ASX」.pdf

《Ainsworth Game Technology Limited (AGI) 2024年年度報告「ASX」.pdf》由會員分享，可在線閱讀，更多相關《Ainsworth Game Technology Limited (AGI) 2024年年度報告「ASX」.pdf（132頁珍藏版）》請在三個皮匠報告上搜索。

1、AINSWORTH GAME TECHNOLOGY LIMITED1ANNUAL REPORTFinancial HighlightsPerformance OverviewProduct OverviewSustainability StatementBoard of Directors and ExecutivesChairpersons Report Chief Executive Officers ReportShareholder Information 23478101216185256120121127 128Directors Report Financial Statemen

2、ts Notes to the Financial StatementsDirectors DeclarationIndependent Auditors Report Lead Auditors Independence DeclarationCorporate Directory Ainsworth Game Technology Limited ABN 37 068 516 665Notice is hereby given that the 2024 Annual General Meeting of the members of Ainsworth Game Technology L

3、imited will be held at the following time and location,as specified below:Bankstown Sports Club “Georges River Room”L1,8 Greenfield Parade (Cnr Greenfield Parade and Mona Street),Bankstown NSW 2200 On Wednesday 29th May 2024 at 10:00am AEST RESULTS ANNOUNCEMENT FOR SIX MONTHS ENDING 30TH JUNE 2024:W

4、ednesday 28th August 2024Dates may be subject to changeIn accordance with ASX Listing Rule 4.10.3,Ainsworth Game Technologys Corporate Governance Statement can be found on its website at:https:/ OF 2024 AGMCONTENTS2AINSWORTH GAME TECHNOLOGY2AINSWORTH GAME TECHNOLOGY LIMITED Profit before Tax excludi

5、ng currency and one-off items,of$41.5m for the 12 months ended December 2023(“Current period”),an improvement of 10%compared the 12 months ended 31 December 2022(“PCP”).Increased revenue in the current period compared to PCP mainly due to increased revenue contribution from North and Latin America.T

6、he Mexican Tax Administration Service(“SAT”)matter regarding import duties of Ainsworth Gaming Machines is expected to settle within the first half of 2024,subject to administrative procedures.Net cash position of$19.4m,compared to the net cash position of$29.3m at 31 December 2022,despite an improv

7、ement in operating cash flows.Reduction in net cash position due to investments made in Argentina to mitigate devaluation of Argentinian Pesos against USD.Strong balance sheet to enable further investment in product development,talent retention and to mitigate risks associated with continuing cost p

8、ressures.HISTORICAL PERFORMANCE-AUD(M)(by 6-Month Periods)*Adjusted Profit After Tax excludes currency impacts and other one-off non-recurring items119.5124.1143.6141.3119.4125.7100.997.323.123.212.222.218.521.97.817.9Ended:30 Jun 2022Ended:31 Dec 2022Ended:30 Jun 2023Ended:31 Dec 2023International

9、RevenueAdjusted(Loss)/Profit After Tax*Domestic RevenueR&D EXPENDITURE-AUD(M)(by 6-Month Periods)R&D as a Percentage of RevenuesTotal R&D Expenditure17.319.421.823.9Ended:30 Jun 2023Ended:30 Jun 2022Ended:31 Dec 2023Ended:31 Dec 202214%16%15%17%FINANCIAL HIGHLIGHTSREVENUE BY SEGMENT(by 6-Month Perio

10、ds)North AmericaLatin America&EuropeAsia PacificOnlineEnded:30 Jun 2022Ended:31 Dec 2022Ended:30 Jun 2023Ended:31 Dec 202324.933.259.7124.18.421.245.568.5143.66.37.227.634.671.9141.36.022.830.260.5119.5SEGMENT PROFIT(by 6-Month Periods)Ended:30 Jun 2022Ended:31 Dec 2022Ended:30 Jun 2023Ended:31 Dec

11、20232.410.430.849.18.2(0.3)22.129.559.55.55.83.711.035.556.05.32.710.728.547.2North AmericaLatin America&EuropeAsia PacificOnline3ANNUAL REPORTNorth America Strong revenue contribution of$140.4 million representing 49%of the Groups total revenue.Segment profit of$65.0 million,an increase of 10%compa

12、red to PCP.Increased in number of units connected to AGTs proprietary HHR system continue to contribute to the revenue growth in this segment.MTD continues to positively contribute with strong product performance in South Dakota and Louisiana.High Denom content continues to thrive,regularly having m

13、ultiple games on industry Top 25 indexes(Eilers and ReelMetrics).A-STAR Raptor Cabinet launched in US in late December 2023 and February 2024 Eilers Report show it is the#1 Performing New Upright Cabinet in the market with performance above 2.5x.Latin America and Euroe Delivered higher than expected

14、 revenue and profit due to incremental sales levels on strong performance results,reflecting an increase of 26%in revenue and an increase of 57%in segment profit,compared to the PCP.Approximately$9.0m in sales revenue this period is a result of accelerated deliveries to Argentina which is expected n

15、ot to repeat in next period due to importation restrictions.Game operations install base increased 12%compared to PCP.Increase in installation base occurred primarily in Mexico and Peru.Demand continues to grow for the A-STARTM range of cabinets,in particular Xtension LinkTM.Game themes such as Pan

16、ChangTM,and Multi-WinTM range of games are amongst the regions top performers.A-STAR Series cabinet has over 2,000 recurring revenue units in market performing on average 1.31x in route.Asia Pacific(Australia,NZ and Asia)Delivered revenue of$48.8 million,up by$1.1 million compared to PCP.Segment pro

17、fit decreased due to higher fixed costs in CY23 despite a higher revenue achieved this year.Improved ASP despite competitive market conditions,however overall reduction in Gross Profit%with continuing inflationary pressures and weakening of AUD against USD,adversely impacting costs of production.Inc

18、rease in unit sales related to Asia with market recovery post pandemic.Change in sales distributor and new venue openings specifically in Philippines is expected to drive revenue in this market in future periods.Grand Fortune has continued to operate above house average in NSW and QLD.The new A-STAR

19、 100 cabinet debuted at AGE 2023 is well received in the market.Online Gaming Delivered revenue of$15.6 million increase of$3.3 million compared to pcp.The increase in online revenue predominantly resulted from the acceleration of Game Account Network(GAN)revenue and 1,250,000 GAN shares issued to A

20、GT based on the GAN contract amendment executed on 29th March,2023.As part of the amendment,GANs exclusivity will terminate on 31st March 2024.Upon termination of this contract,AGT will directly integrate with USA operators.Despite the revenue increase of 28%,the Group during the period invested in

21、more talent to remain competitive in the online industry,resulting in a similar segment profit margin.In 2024,Ainsworth Interactive will be distributing our latest games to US online casino operators directly via localised remote gaming servers and supported by a newly formed Americas online operati

22、ons team.Ainsworth continues its partnership with Zyngas Hit It Rich!,combining Ainsworths innovative game content with their extensive reach and expertise in the social gaming sphere.Ainsworth has established itself as a leading online gaming supplier in Latin America and are continuing its growth

23、in Canada through partnership with Loto-Qubec and look to launch into Ontario via partnerships with Light and Wonder and Pariplay.PERFORMANCE OVERVIEWREPORTED&ADJUSTED EBITDA-AUD(M)(by 6-Month Periods)Adjusted*ReportedEnded:30 Jun 2022Ended:31 Dec 2022Ended:30 Jun 2023Ended:31 Dec 202312.514.915.84.

24、329.426.431.327.7*Adjusted EBITDA excludes currency impacts and other one-off non-recurring items4AINSWORTH GAME TECHNOLOGY4AINSWORTH GAME TECHNOLOGY LIMITEDCABINETSA-Star RAPTORThe first A-Star RAPTOR cabinets were installed in North America late 2023 and it has been ranked as Top Performing Portra

25、it in North America on the prestigious Eilers&Krejcik Gaming Performance Report.The A-Star RAPTOR features a unique cylindrical display for player tracking,along with a cylindrical above monitor speaker for enhanced player 5.1 sound experience.The new cabinet includes a 49-inch J-Curve monitor with

26、a 27-inch topper,alongside full high-definition graphics above an 18.5-inch touchscreen button deck with twin bet buttons.Careful attention has been paid to the player experience,further enhanced by an attractive new LED lighting package and premium surround sound.Several new game families will be p

27、rogressively released exclusively on the RAPTOR.Across Latin America,the first A-Star RAPTOR installation arrived in Puerto Rico in March 2024 followed by more installations within the Caribbean.A-Star 100In July 2023 we celebrated the momentous achievement of our founder Mr Leonard Ainsworths 100th

28、 birthday.To commemorate the occasion a signature edition A-Star cabinet,the A-Star 100 was released within the Australian market.This new addition to the A-Star family features never before seen 3 x 32”LCD screens,a topper mounted sound bar and exclusive signature plaque.The A-Star 100 has received

29、 positive feedback across all Australian jurisdictions as the preferred Ainsworth cabinet creating a strong presence on gaming floors.NORTH AMERICASan Bao Pandas&San Bao DragonsAvailable in Class III markets exclusively on the A-Star RAPTOR,San Bao Pandas and San Bao Dragons were ranked as the#6 and

30、#15 Top Performing New Games on a recent Eilers&Krejcik Gaming Performance Report.The titles each include three distinct features which are won through perceived persistence growing pots.The games are also top performers within Ainsworths Class II and Historical Horse Racing markets.Historical Horse

31、 Racing SystemAinsworths award-winning Historical Horse Racing(HHR)System continue to appeal to operators around the U.S.The system is now active with approximately 8,000 units.Ainsworth continues to produce a full suite of game content,as well as the integration of other gaming manufacturers produc

32、ts to connect to the system.Most recently the Company installed its HHR System at the two newly opened properties in Kentucky:Derby City Downtown in Kentucky and Sandys Racing and Gaming.LATIN AMERICA&EUROPEXtension LinkAvailable in the A-Star XL&A-Star Curve,Xtension Link continues to be the game w

33、ith the best performance through LATAM,surpassing the legacy Multi Win 8 in both performance and units currently installed.Xtension Link provides never-before-seen performances with indicators as high as 5x house average.This is an excellent opportunity for the region since Xtension Link has allowed

34、 us to maintain a solid floor share through the casinos in these markets.New Installations in EuropeThe first A-Star Dual,Curve&A-Star Raptor installations have now arrived in Spain,France&Germany.After a successful ICE show,we continue to gain market acceptance in the European market with games lik

35、e Platinum Electric Nights,Cash Stacks Gold,and Grand Fortune.ASIA PACIFICGrand FortuneGrand Fortune continues to be the top performing brand in Australia dominating for the last 12 months.Built on market feedback and insights with varying volatilities and an evolved Hold n Stack feature exclusive t

36、o Ainsworth,it appeals to a wide range of players.With six titles available in both Link and Stand Alone Progressive,Fortune Bull is the standout favorite with continuous strong performance.AsiaLate 2023 saw the debut of the A-Star cabinet in the Philippines at the prestigious City of Dreams,Manila

37、with an installation at the new Solaire Resort North upon opening.The A-Star cabinet is also debuting in Wynn Macau and Wynn Palace quarter 2 of calendar year 2024.Ainsworth was also successful in the bid for new cabinets at Kangwon Land,South KoreaPRODUCT OVERVIEW5ANNUAL REPORTAINSWORTH INTERACTIVE

38、Real Money GamingIn 2023,Ainsworth Interactive began operations with fifteen online casino operators.During the year,our games were activated on twelve more sites,totalling twenty-seven websites,including the Argentina operation with Betfun,CABA,and Betwarrior.Games like Mustang Money account for th

39、e most significant portion of the total gross gaming revenues followed by the legacy games from the Multi Win brand,such as Electric Nights and Soul Queen.We now have over 120 games live with Latin American online Casino Operators.PRODUCT OVERVIEW(CONT.)In 2024,Ainsworth Interactive will be distribu

40、ting our latest games to US online casino operators directly via localized remote gaming servers and supported by a newly formed Americas online operations team.Social CasinosOur partnership with Zyngas Hit It Rich!has been nothing short of transformative,combining our innovative game content with t

41、heir extensive reach and expertise in the social gaming sphere.Together,we have established a formidable presence in the competitive landscape of social casino gaming,delighting millions of players worldwide with engaging gameplay experiences and Ainsworths compelling content.6AINSWORTH GAME TECHNOL

42、OGY LIMITED7ANNUAL REPORTThe Company is committed to implementing a range of initiatives that are directed towards making a positive contribution towards sustainable development.ENVIRONMENT&ENERGYMission:Minimise the impact of the Companys business activities on the environment.Example of initiative

43、s:Implementation of solar energy technologies and industrial standard energy saving lighting throughout its premises;Recycling of paper,cardboard waste and used metal;Minimisation of use of hazardous substances in the Companys products;Reduction of paper usage through paperless transactions and reco

44、rd keeping where possible.OUR PEOPLEMission:Build an engaged,skilled,and responsible workforce guided by values that support our strategy.Example of initiatives:Incentivise employees to maintain a safe and enjoyable work environment;The conduct of employee training on what constitutes bribery,unlawf

45、ul/corrupt conduct and money laundering and the penalties associated with such conduct;An ongoing assessment of the workplace health and safety risks of all Ainsworth employees;Allowing all employees to utilise flexible work conditions where practicable.RESPONSIBLE GAMBLINGMission:To support and pro

46、mote responsible gambling.Example of initiatives:Ensuring the Companys gaming products meet or exceed the requirement that they operate with fairness and integrity and that they facilitate responsible gaming machine play;Through the Companys full membership and support of the Gaming Technologies Ass

47、ociation of Australia(GTA),assisting in the provision of responsible gaming resources to the general public that allow players to make informed decisions about their participation in gaming machine play.More information on these initiatives is available from the GTA website:.LICENSING&COMPLIANCEMiss

48、ion:Ensuring that we operate in accordance with global compliance best practice across global markets.Example of initiatives:Adopting a proactive approach to the ongoing compliance and probity of all Company associates and employees.The regular vetting and review of all new and existing significant

49、customers and suppliers of the Company by a dedicated and professionally trained regulatory compliance function overseen by the Companys Regulatory and Compliance Committee.ETHICAL SOURCINGMission:Ensuring that those involved in our supply chain are treated fairly and operate in a safe environment a

50、nd are conforming to local requirements.Example of initiatives:The ongoing efforts of the Company to minimise the risk of modern slavery within the Companys domestic and global supply chain as detailed in the Companys Modern Slavery Statement and published on the Companys website.SUSTAINABILITY STAT

51、EMENT8AINSWORTH GAME TECHNOLOGY8AINSWORTH GAME TECHNOLOGY LIMITEDHarald Neumann Chief Executive OfficerHarald has extensive leadership experience in senior executive positions in a career spanning over 20 years mainly within technology companies.Former Regional Chief Executive Officer at Alcatel AG(

52、now Alcatel Lucent)a global tele-communications equipment company.Former Managing Director at Bundesrechenzentrum GmbH,the Austrian governments information technology service provider,until 2006.Mr Neumann then became CEO of G4S Security Services Austria AG,the Austrian subsidiary of one of the worl

53、ds leading integrated security companies with over 700,000 employees and listing on the London Stock Exchange,before joining Novomatic in 2011.Former Chief Executive Officer and Chairperson of the Executive Board of Novomatic from 2014 until 29 February 2020.Graduate of the Vienna University of Econ

54、omics and Business,Board Member of the American Chamber of Commerce,Member of the Rotary Club Klosterneuburg and Member of the Supervisory Board of Casinos Austria AG since March 2017.Appointed Non-Executive Director of Ainsworth Game Technology on 21 February 2017.Appointed Chief Executive Officer

55、and Executive Director 1 October 2021.Resigned as Executive Director on 21 December 2021.Lynn Mah Chief Financial OfficerLynn was appointed to the Chief Financial Officer role in January 2023.She has a robust background in accounting,audit,tax,treasury and investor relations.Lynn partners with the C

56、EO and the other global executives to guide the Groups financial performance,operations and strategic initiatives.Prior to her appointment as the Groups CFO,Lynn held the role of the Group Finance Manager and Assistant Company Secretary for AGT.Lynn was responsible for the Groups consolidation finan

57、cial reporting and led the finance team in Australia.She also assisted in company secretarial matters with sound knowledge of ASX Corporate Governance Principles and Recommendations and ASX Listing rules.Lynn graduated from University of New South Wales,Sydney with a Bachelor of Commerce(majoring in

58、 Accounting and Business Law).She is a Certified Practising Accountant(CPA).Lynn has completed a Graduate Diploma in Applied Corporate Governance from the Governance Institute of Australia and is a current fellow member of this institution.David Bollesen Chief Technology OfficerAppointed the new Chi

59、ef Technology Officer(CTO)in October 2021,David Bollesen has a distinguished career spanning over 25 years in the digital entertainment industry and heads Ainsworths Game Development teams globally.Davids extensive creative,design and development experience has been the foundation for managing game

60、studios in the US,UK and Asia Pacific region.Prior to joining Ainsworth David spent more than 11 years working at IGT,including serving as Vice President of Game Studios in the companys Australian headquarters.Ryan Comstock Chief Operating OfficerRyan P.Comstock is Chief Operating Officer and a Dire

61、ctor of Ainsworth Game Technology Inc.Prior to joining Ainsworth in 2012,Ryan spent nearly a decade within Deloittes audit and assurance practice where he served Gaming,Manufacturing,and Technology Companies.Since joining Ainsworth,Ryan has held various positions focused on finance and operations wi

62、thin the Americas and in 2018 was promoted to Chief Operating Officer.Ryan is a graduate of the University of Nevada,Reno where he attained degrees in Accounting and Computer Information Systems.He is a Certified Public Accountant,member of the Nevada State Board of Accountancy,member of the America

63、n Institute of CPAs,and Officer of the Association of Gaming Equipment Manufactures.Danny GladstoneChairperson and Independent Non-Executive Director Member of the Audit and Risk CommitteeGraeme Campbell OAMIndependent Non-Executive Director Chairperson of the Audit and Risk Committee Member of the

64、Remuneration and Nomination CommitteeColin Henson Dip-Law BAB,FCPA,FCG(CS,CGP)FAICDIndependent Non-Executive Director Chairperson of the Remuneration and Nomination Committee Chairperson of the Regulatory and Compliance Committee Member of the Audit and Risk CommitteeHeather Scheibenstock GAICD,FGIA

65、Independent Non-Executive Director Member of the Remuneration and Nomination Committee Dr.Haig Asenbauer Attorney at Law,Bar Association of ViennaNon-Executive DirectorSubject to regulatory approval EXECUTIVESBOARD OF DIRECTORS9ANNUAL REPORT10AINSWORTH GAME TECHNOLOGY10AINSWORTH GAME TECHNOLOGY LIMI

66、TEDDear Shareholders,I am pleased to present Ainsworths Annual Report for the financial year ended 31 December 2023(CY23).This follows the Companys recent change in reporting on a calendar year basis effective from 1 January 2023 which creates benefits in efficiencies and better alignment with our c

67、ustomers buying cycles.The Company has continued to show good momentum in the second half of the financial year ended 31 December 2023 following the performance reported in the first half of CY23.New product offerings and improved product performance across our international and domestic markets cre

68、ated increased opportunities and confidence from our customers as the industry returned to normal activity levels.For CY23,we delivered a Profit before Tax,excluding currency impacts and one-off items,of$41.5 million,compared to the$37.6 million in the Prior Corresponding Period(PCP)in 2022.AGT cont

69、inued to maintain the previously achieved momentum in the current period with revenue increasing to$284.9 million,an increase of 17%on the PCP.Underlying Group EBITDA increased to$59.0 million despite the planned increased level of investment and the advent of rising cost pressures experienced.We ha

70、ve continued to progress investment in our people,technology,and product development areas to ensure our product offerings are more competitive in the market which is expected to achieve further improvements in our financial results in coming periods.The benefits from the continued improvements in p

71、roduct performance and in new products released across North America in the period combined with a progressive recovery in market conditions within Latin America resulted in these regions increasing revenue by 20%versus the PCP,now representing 77%of total revenue reported.These results are reflecti

72、ve of the relaxing of previous market restrictions and acceptance of increased government regulations within countries in Latin America.Recurring revenues,another strong feature of AGTs business model,increased to$95.1 million,an increase of 15%on the$82.5 million in the PCP.Units under gaming opera

73、tion at 31 December 2023 increased to 7,222,an increase on both the 6,623 units at 30 June 2023 and the 6,517 units at 31 December 2022.These units generate high margin annuity style recurring revenues.North American revenue increased by 17%through strong performance and market expansion in Class II

74、 products(including Historical Horse Racing(HHR)under participation and lease.Recurring revenue contributed 53%of the regions segment revenue in the period.The success of the Historical Horse Racing products continues to experience strong market demand with approximately 8,118 units connected to the

75、 Companys HHR system.Further new market opportunities are expected in Kentucky and Alabama within the CY24 period.AGTs Asia Pacific(Australia,New Zealand,and Asia)performance was consistent in the period as competitive market conditions continued.Revenue increased to$48.8 million,a slight increase o

76、n the$47.7 million in the PCP.We are encouraged with the changes we have initiated and the investments we have made to fundamentally upgrade and further improve game performance.The new A-STAR 100TM cabinet released in the period,together with new game brands are showing encouraging initial performa

77、nce results compared to previous cabinet hardware and game combinations.The Online segment reported revenue of$15.6 million which included the acceleration of Game Account Network(GAN)revenue through the shares issued and contract amendment terminating exclusivity at 31 March 2024.Following the expi

78、ry of exclusivity with GAN,the Company will pursue direct integration with USA operators.Further discussions with the Mexican Tax Administration Service(SAT)on the previously disclosed audit and review of unpaid duties and associated charges in this region progressed in the period and is expected to

79、 be resolved in half one of CY24,once all administrative processes are completed.An in-principal agreement has been established with SAT,subject to administrative procedures,with the provision updated at 31 December 2023 to reflect any material changes in line with these discussions on proposed amou

80、nts owing.Operating cash flows in the period were$27.9 million,an improvement on the$15.4 million reported in CY22.The improvement was primarily due to prudent working capital management,particularly in a reduction in inventory holding of 19%at 31 December 2023,compared to the prior year.While opera

81、ting cash flows have improved during the period,investments were made in Argentina and capital expenditure to support the release of new hardware during the year.This resulted in net cash held at the reporting date of$19.4 million,a decrease on the$29.3 million reported at 31 December 2022.Our prior

82、ity remains to maintain a strong balance sheet and liquidity to support the required levels of working capital to satisfy customer demand and support the necessary R&D investments to strengthen AGT for sustained success.We have fundamentally improved the outputs of our R&D investments and lifted the

83、 CHAIRPERSONS REPORTcompetitiveness of our products.We are offering more value and entertainment to our customers and have established an organisational structure and balance sheet to support these strategies.The Board is committed to recommencing the declaration of dividends under its dividend poli

84、cy when circumstances allow.The primary focus at the present time remains to explore growth opportunities and undertake the necessary investment in our people,technology,and product development primarily in the traditional Class III offerings which is expected to complement our strong performance ac

85、hieved to date in Class II Historical Horse Racing(HHR)markets.We have achieved sustainable underlying profitability,and the next stage is to finalize the on-going SAT and capitalise on the investments made to further grow revenues across our global markets.Changes to the global organisational struc

86、ture previously implemented have ensured strong product leadership with clear lines of accountability.Management continues to pursue a range of measures focusing on technology,development,and culture to improve product performance,lift staff retention rates and enhance AGTs ability to attract world

87、class development talent.This is key to our long-term sustained success,and I look forward to these improving reported financial results in coming periods.As was recently outlined and foreshadowed by the announcement in November 2023 where the Company advised on the engagement of Macquarie Capital a

88、s the Companys financial advisor,a strategic review of potential opportunities continues to be progressed.This strategic review encompasses a number of alternatives to maximise shareholder value.While there is no assurance that any transaction will result during this strategic review,we will continu

89、e to keep the market updated as required.I would like to acknowledge and thank Mr Harald Neumann,our CEO,for his leadership and my fellow Board members for their contributions through the period.I would like to close by thanking the rest of the highly capable executive team in Australia and the Amer

90、icas,as well as our dedicated and loyal employees,my fellow shareholders and as always,our customers.Danny GladstoneChairperson11ANNUAL REPORT12AINSWORTH GAME TECHNOLOGY12AINSWORTH GAME TECHNOLOGY LIMITEDDear Shareholders,Ainsworth continues to make positive progress across all operational areas of

91、the Company with the achievement of sustained profitability,a strong balance sheet and a clear and defined strategy to continue to improve game performance of our products across all global markets.I would like to firstly reiterate on the statements made by AGTs Chair,Danny Gladstone,as detailed in

92、the announcement to the Australian Securities Exchange in November last year,highlighting that a strategic review is being undertaken by Macquarie Capital.This review remains an on-going process and includes a broad range of potential organic and inorganic alternatives to maximize shareholder value.

93、As this strategic review continues,we advise that there is no assurance that any transaction will result and will ensure the market is updated on the process,as required.As I have previously outlined strategies were implemented to ensure continued improvements in financial returns for the benefit of

94、 all shareholders.We are now starting to realise the benefits from these initiatives with an increasing interest in AGTs latest range of products.The overall reported results show a Profit before Tax(PBT)of$2.6 million however incorporates significant currency translations in the second half of CY23

95、 and other one-off items outside the normal operations of the Company,including non-cash impairments assessed on Cash Generating Units.PBT,excluding currency impacts and one-off items,was$41.5 million in the current period.This resulted in a second half PBT on the same basis of$18.2 million and was

96、in line with the guidance outlined by the Company.I am encouraged that Ainsworth has maintained and delivered solid operational results with revenue increasing to$285 million in the current period.This represented a 17%increase on the$244 million in the Prior Corresponding Period(PCP).Underlying EBI

97、TDA for the period was$59.0 million,slightly ahead of the PCP with the second half of CY23 contributing$27.7 million.As we reported at the first half,we have provided for the full write-down of the carrying value of investments held in Argentina,following a notification by the investment company tha

98、t a reorganization petition had been filed by the trustor of the investments.Court proceedings relating to determining recoverability on these investments cannot be reliably measured at this stage.The macro-economic uncertainties and political instability in the region have contributed to further si

99、gnificant devaluation of the Argentinian Peso against the US Dollar,with a decline of 50%being experienced in December 2023.Investment in development activities undertaken has resulted in the commercialisation and release of the new and innovative A-Star Raptor cabinet.This cabinet was initially rel

100、eased in North America in late 2023 and has provided renewed interest from our customers across this region.This newly designed cabinet has been ranked as the Top Performing Portrait in North America on the prestigious EKG Game Performance Report which is expected to provide increased opportunities

101、across the key American markets.Along with the Board and the established Executive Team,we are committed to delivering new and exciting gaming products to deliver on our potential to be a larger and more profitable company across all our major markets.As I have mentioned revenue increased to$285 mil

102、lion,up 17%on the$244 million in the PCP.Revenue increases were achieved across the key regions in both North and Latin America.Reflecting the momentum offshore,international revenue increased to$245 million,a 24%increase compared to the PCP and represents 86%of the Groups total revenue.The gross ma

103、rgin achieved in the period was 62%,consistent with the PCP.The strong average selling prices and an increased proportion of high margin recurring revenue compared to the PCP ensured margins were maintained in the current period.Group operating costs in constant currency terms were$134.2 million,14%

104、higher compared to the PCP.The increase in operating costs was mainly attributable to the increase in overall headcount in the current period to ensure talent retention to support business growth and implemented strategies,as well as increased variable selling costs on the 17%increase in revenue ach

105、ieved during the period.Research&Development(R&D)expenses increased by 25%compared to the PCP,reflecting the Companys continued focus on product development investment to produce competitive products.R&D expenses as a percentage of total revenue were 16%in the current period,consistent with the 15%i

106、n the PCP.A consistent level of investment in R&D is expected to continue as the Company revamped its studios in Sydney;Las Vegas and Reno,Nevada;Austin,Texas;and Monterrey,Mexico which are all led by recognised and experienced gaming veterans.CEOS REPORT13ANNUAL REPORTThe reported results included

107、translational foreign currency losses in the current period of$21.5 million compared to gains of$2.6 million in the PCP.These were primarily as a result of the significant devaluation in the Argentinian Peso as I have outlined.Other one-off items outside normal operations included a loss of$17.4 mil

108、lion,resulting from the profit uplift of$1.9 million on the amendment to the GAN exclusivity agreement,a write-down in investments in Argentina of$13.2 million and a non-cash impairment charge of$6.1 million within Latin America.I note that the non-cash impairment charge of$6.1 million was recorded

109、in the current period,for the Latin America Cash Generating Unit(CGU).As in previous periods,this impairment charge to the carrying value of assets reflects the reassessment of discount rates,inflationary cost pressures and uncertainties inherent in validating expected revenue in future periods with

110、in these regions.These factors contributed to a reduction in the available headroom resulting in a lower recoverable amount for this CGU.This results from the timing nature of the current business model within this region where gaming machines are initially placed under operation which requires thes

111、e assets to be assessed for impairment purposes,despite the generation of increased participation revenue prior to the potential conversion to sale.Operating cash flows in the period were$27.9 million,an improvement on the$15.4 million reported in CY22.The improvement was primarily due to prudent wo

112、rking capital management,particularly in a reduction in inventory holding of 19%at 31 December 2023,compared to the prior year.While operating cash flows have improved during the period,investments were made in Argentina and capital expenditure to support the release of new hardware during the year.

113、This resulted in net cash held at the reporting date of$19.4 million,a decrease on the$29.3 million reported at 31 December 2022.We have a strong capital base and are well financed to go forward to execute on strategies established.North American revenue in the current period was$140.4 million,an in

114、crease of 17%on the PCP,representing 57%of total international revenue.High denomination games continue to be the strength of AGT in the United States with multiple games consistently included in Top 25 indexes reported by Eilers and Reel Metrics.Development initiatives initiated to provide greater

115、market share within the low and mid denomination product groupings have resulted in both San Bao PandasTM and San Bao DragonsTM being reported in the Eilers Top 25 Indexing New Games in February 2024.Following the continued success of MTD games in South Dakota,the launch of the games in Louisiana ha

116、ve seen similar success with strong performance of the new Squish ReelsTM game in these markets.The exclusive distribution agreement within Montana was extended for an additional year and further opportunities are expected within this state once exclusivity expires.Machines under operation in North

117、America at the reporting date numbered 3,090,an increase of 9%on the PCP primarily through expansion within Kentucky and Alabama where new placement opportunities occurred in the current period.Machines placed under participation and lease(including connection fees),which generate recurring revenue,

118、contributed 53%of segment revenues.Historical Horse Racing(“HHR”)products continue to perform with 8,118 units connected to AGTs HHR system at 31 December 2023 with the anticipation of further growth as new installations occur in Kentucky and Alabama during calendar year 2024.Strong average selling

119、prices and increased recurring revenues,along with disciplined cost controls resulted in a rise in segment profit to$65.0 million versus$59.3 million in the PCP,up 10%.Encouragingly,positive progress and signs of recovery continued in several countries in the Latin American region,with further momen

120、tum and an improved performance overall.Revenues in Latin America/Europe increased during the current period by 26%compared to the PCP.Unit sales in the current period were 2,264,an increase of 18%on the PCP.This increase was driven by the strong demand and the utilisation of import licenses in Arge

121、ntina which was previously reported in the first half of CY23.Demand continues to grow for the A-STARTM range of cabinets and top performing game themes such as Xtension LinkTM,and Multi-WinTM games.At the reporting date,a total of 4,132 units were under operation compared to the 3,690 units in prio

122、r periods.These units generated$22.6 million in recurring revenue,an increase of 14%on the PCP.Despite the reduction in units under operation reported in the first half of CY23,primarily due to the introduction of regulatory changes in Mexico,strong demand in Peru and Mexico resulted in the installe

123、d base of machines under operation increasing 16%in the second half of CY23 with the average yield being maintained at US$12 per day.14AINSWORTH GAME TECHNOLOGY14AINSWORTH GAME TECHNOLOGY LIMITEDCEOS REPORT(CONT.)Discussions with Mexican Tax Administration Service(SAT)on the previously disclosed aud

124、it and review of unpaid duties and associated charges in this region have progressed in the period.Based on these discussions,the Group has reached an in-principal agreement with SAT,subject to administrative procedures,and the provision at 31 December 2023 has been updated to reflect this agreement

125、.It is expected that this matter will be finalised with SAT once all administrative processes are completed.Revenue within the Asia Pacific region was$48.8 million in the current period,similar to the PCP.Overall domestic revenues fell by 12%to$39.8 million when compared to the PCP.New South Wales r

126、eported an increase of 7%,however both Victoria and Queensland declined and were impacted by minimal corporate sales and competitive market conditions.The release of the new A100TM hardware at AGE 2023 was positively received and together with improved performance on the Jackpot KingdomTM brand it i

127、s expected sales in the Australian region will improve in CY2024.This brand recently released has reported strong initial performance at above 1.5 times house average in Queensland.Further market recovery,including changed distribution channels in Asia resulted in revenues of$9.0 million within Asia

128、 and New Zealand in the period,an increase of 329%on the$2.1 million in the PCP.Average selling prices improved despite competitive market conditions however segment profit was affected by increased marketing and trade show costs,production costs and material costs in the current period compared to

129、the PCP.The Digital segment which reported revenue of$15.6 million,included the one-off profit uplift of$1.9 million resulting from the Game Account Network(GAN)contract amendment.These high margin online revenues resulted in segment profit of$14.0 million in the current period.It is expected that w

130、hen the GAN exclusivity contract terminates in March 2024,the Group will be able to directly explore further opportunities with US operators.To conclude,AGT enters the calendar year 2024 with good momentum and expects sustainable profitability.Trading conditions in both domestic and international ma

131、rkets have shown their resilience despite economic challenges in global markets.AGTs North American business continues to make progress in both Class II and Class III markets.Opportunities are continually being pursued for existing and new HHR markets.Despite more volatile market conditions in Latin

132、 America,the Group expects to maintain its market position as a preferential supplier of gaming equipment in this region.Domestic markets are expected to benefit from new A100 hardware released at the recent Australian Gaming Exhibition and improved game performance following the release of new game

133、 titles.With a strong balance sheet and commitment to product innovation,AGT is well placed to deliver improved financial performance.As I said at the beginning,our results are much improved on the PCP driven by the contributions from international markets.We can also look forward to further improve

134、ments in Australia,where we will continue to leverage our key strengths of AGTs trusted brand,our highly capable staff and the Companys enduring commitment to develop superior game technologies.As I have previously communicated for us to ensure continued growth and to sustain our performance,measure

135、s introduced are having the desired effects and we are starting to see improvements in the outputs of our R&D investments which is expected to lift the competitiveness of our product and provide growth opportunities.We have expanded our capabilities and talent within R&D in both the Sydney and Las V

136、egas studios.Additional R&D studios are now operating to provide more creativity and diversity to our current product offerings.Quality initiatives are continually assessed to improve game designs,mathematics,and graphical arts to create a more diverse and targeted range of product offerings to our

137、customers.The infrastructure to achieve our product road map is now well established which we expect to translate into improved and sustainable long-term results across global markets.The changes to the global organisational structure will ensure new product leadership and clear lines of accountabil

138、ity which continue to provide on-going efficiencies and an exciting range of diverse and new product offerings.We are committed to implementing measures focusing on technology,development,and culture to improve product performance,lift staff retention rates and enhance AGTs ability to attract world

139、class development talent.15ANNUAL REPORTQuality initiatives implemented have already started to have the desired effect to further improve game designs,mathematics,and graphical arts.These measures will enable the on-going creation of a more diverse and targeted range of product offerings to our cus

140、tomers.I look forward to updating you on these initiatives as we progress.We will continue to leverage and expand on the key strengths of AGTs trusted brand,our highly capable staff,the companys enduring commitment to developing superior game technologies and our customer relationships across our ma

141、jor markets.I would like to finish by acknowledging and thanking the Board,the Executive Team and all my colleagues at Ainsworth for their contributions to the progress made and their dedication to our customers.I am incredibly proud of the way the team at AGT has taken on the challenges presented t

142、o them to ensure we are well placed to improve our financial performance over coming periods,and I want to formally thank them all.Harald NeumannChief Executive OfficerShareholder InformationINFORMATION ABOUT SHAREHOLDERS Shareholder information required by the Australian Securities Exchange Limited

143、 Listing Rules and not disclosed elsewhere in this report is set out below:SHARE HOLDINGS(AS AT 22 MARCH 2024)Number of shareholders and shares on issueThe issued shares in the Company were 336,793,929 ordinary shares held by 2,874 shareholders.Substantial shareholdersThe number of shares held by su

144、bstantial shareholders and their associates are set out below:Shareholder Number of Ordinary SharesNovomatic AG 178,150,817Spheria Asset Management 27,557,893Allan Gray Investment Management23,859,751Voting rightsOrdinary sharesThe voting rights attaching to ordinary shares are that on a show of han

145、ds every member present in person or by proxy has one vote and upon a poll,each share shall have one vote.Options and Performance RightsOption and performance right holders have no voting rights.Distribution of shareholdersNUMBER OF EQUITY SHAREHOLDERSCategoryOrdinary SharesPerformance Rights1 1,000

146、8881,001 5,0001,1585,001 10,00035910,001 100,0004231100,001 and over4619Total 2,87420The number of shareholders holding less than a marketable parcel of ordinary shares is 451(50,949 ordinary shares).On market buy-backThere is no current on market buy-back of ordinary shares.Unquoted equity securiti

147、es At 22 March 2024,9,050,000 performance rights have been issued to 20 employees.These performance rights are unlisted,non-transferable and remain unexercised.Regulatory considerations affecting shareholdersThe Company is subject to a strict regulatory regime in regard to the gaming licences and op

148、erations within the gaming industry.It is necessary for the Company to regulate the holding of shares to protect the businesses of the Company in respect of which a gaming licence is held.By accepting shares,each potential investor acknowledges that having regard to the gaming laws,in order for the

149、Company to maintain a gaming licence,the Company must ensure that certain persons do not become or remain a member of the Company.The Constitution of the Company contains provisions that may require shareholders to provide certain information to the Company and the Company has powers to require dive

150、sture of shares,suspend voting rights and suspend payments of certain amounts to shareholders.16AINSWORTH GAME TECHNOLOGY LIMITED17ANNUAL REPORTShareholder Information(continued)Twenty largest shareholdersNameNumber of ordinary shares held Percentage of totalNOVOMATIC AG178,150,81752.90CITICORP NOMI

151、NEES PTY LIMITED41,724,69812.39HSBC CUSTODY NOMINEES(AUSTRALIA)LIMITED17,268,9945.13VOTRAINT NO 1019 PTY LIMITED15,066,9044.47HSBC CUSTODY NOMINEES(AUSTRALIA)LIMITED12,850,2193.82BOND STREET CUSTODIANS LIMITED 10,616,5803.15J P MORGAN NOMINEES AUSTRALIA PTY LIMITED8,552,0662.54CJHA PTY LIMITED 7,533

152、,4502.24MR KJERULF DAVID HASTINGS AINSWORTH7,391,4592.19BNP PARIBAS NOMS(NZ)LTD2,884,6030.86NATIONAL NOMINEES LIMITED1,890,6990.56BNP PARIBAS NOMINEES PTY LTD 1,865,9570.55HSBC CUSTODY NOMINEES(AUSTRALIA)LIMITED-A/C 21,804,0720.54THE PAVILION MOTOR INN WAGGA WAGGA PTY LTD1,500,0000.45CASOLA HOLDINGS

153、 PTY LTD 910,0000.27MERRILL LYNCH(AUSTRALIA)NOMINEES PTY LIMITED902,2880.27MR CHRISTIAN JOHN HASTINGS AINSWORTH770,6500.23MR SASHA ALEXANDER CAJKOVAC692,8190.21BNP PARIBAS NOMINEES PTY LTD 691,1120.21MR RICHARD JAMES GOLDSACK+MS AMANDA JANE HAY 546,2730.16Total 313,613,660 93.14Directors Reportfor t

154、he year ended 31 December 202318AINSWORTH GAME TECHNOLOGY LIMITEDThe directors present their report together with the consolidated financial report of the Group comprising of Ainsworth Game Technology Limited(the Company)and its subsidiaries for the financial year ended 31 December 2023 and the audi

155、tors report thereon.1.DIRECTORSThe directors of the Company at any time during or since the end of the financial year are:Name,Qualifications&Independence StatusExperience,Special Responsibilities&Other DirectorshipsCURRENTMr Daniel Eric Gladstone Chairperson and Independent Non-Executive Director D

156、anny has held senior positions within the gaming industry over a successful career spanning 50 years.Former Chairperson of Gaming Technologies Association.Inducted into the Club Managers Association Australia Hall of Fame in 2000.Former member of Regulatory and Compliance Committee of the Company fr

157、om 2010 until 2019.Chief Executive Officer of the Company from 2007(Executive Director since 2010)until 2019.Non-Executive Director of the Company since 2019,appointed Chairperson of the Board of Directors on 26 November 2019.Member of Audit&Risk Committee of the Company since 2021.Mr Graeme John Ca

158、mpbell OAM Independent Non-Executive Director Graeme has specialised in liquor and hospitality for over 30 years in corporate consultancy services with particular emphasis on hotels and registered clubs.Independent Chairperson of Harness Racing Australia.Former Chairperson of Nominations Committee o

159、f Parramatta Rugby League Football Club(Eels)from 2017 to 2023.Former Chairperson of Harness Racing NSW,Former Director of Central Coast Stadium,Blue Pyrenees Wines and NSW Harness Racing Club.Former Director and Chairperson of Lantern Hotels Group and TerraCom Limited.Recipient of J.P.Stratton awar

160、d and Ern Manea Gold Medal.Inducted into the Inter Dominion Hall of Fame in February 2014.Awarded Order of Australia medal in January 2018 for services to harness racing.Director of Liquor Marketing Group Limited(Bottle Mart)since 2013.Chairperson of Audit&Risk Committee of Illawarra Catholic Club G

161、roup.Former member of the Regulatory and Compliance Committee of the Company until 2017.Member of Audit&Risk Committee of the Company since 2017 until 2019 Chairperson since 2019 and member of Remuneration and Nomination Committee since 2015.Lead Independent Non-Executive Director of the Company sin

162、ce 2013 until appointed Chairperson in 2016 until 2019.Lead independent Non-Executive Director from 2019 until 11 July 2022.Directors Report(continued)19ANNUAL REPORTfor the year ended 31 December 2023Name,Qualifications&Independence StatusExperience,Special Responsibilities&Other DirectorshipsCURRE

163、NTMr Colin John Henson Dip-Law BAB;FCPA;FCG(CS,CGP)FAICD Independent Non-Executive Director Colin has had a lengthy career in senior corporate positions and as a director and Chairperson of private companies and publicly listed companies across a broad range of industries.Fellow of the Australian In

164、stitute of Company Directors,Fellow of CPA(Certified Practising Accountants)Australia and Fellow of the Governance Institute of Australia.Colin is also a non-practising member of the Law Society of NSW.Non-Executive Director of the Company since 2013.Member of Audit&Risk Committee of the Company sin

165、ce 2017 and Chairperson from 2017 until 2019.Member of Audit&Risk Committee since 2019.Chairperson of Remuneration and Nomination Committee of the Company since 2015.Member of Regulatory and Compliance Committee of the Company since 2019 and Chairperson since 2021.Ms Heather Alice Scheibenstock GAIC

166、D,FGIA Independent Non-Executive Director Heather has extensive leadership experience within the gaming and hospitality industries specialising in strategic planning and offshore growth spanning over 35 years.Currently Deputy Chair and Chair of the Quality and Outcomes Committee of Ability Options s

167、ince 2017.And previously Non-Executive Director SenSen Networks Ltd and Chair of Audit and Risk Committee at SenSen Networks Ltd 2018-2022.Former Non-Executive Director of the Company from 2016 until 2019.Graduate of Australian Institute of Company Directors and member of Women on Boards.Fellow of G

168、overnance Institute of Australia.Appointed Non-Executive Director of the Company on 11 July 2022.Member of the Remuneration and Nomination Committee of the Company since December 2022.Dr Haig Edwin Asenbauer Attorney at law,member of the Bar Association of Vienna,Austria Non-Executive Director (not

169、considered Independent due to role with Novomatic AG)Haig has had an extensive and lengthy career as a practicing legal attorney within Austria.Qualified legal practitioner from Vienna University School of Law(Doctor iuris(J.S.D.)and Master iuris(J.D.)and admission to Bar Association of Vienna.Gradu

170、ate from New York University School of Law(Master of Laws in Corporation Law)and Danube University Krems,Austria(expert in European Law).Former Chief Investment Officer/Member of the Group Executive Board at DO&CO Aktiengesellschaft,Vienna.Partner of the Austrian Law firm square17 Rechtsanwaelte Gmb

171、H in Vienna,Austria.Deputy Chairman of supervisory Board of Novomatic AG.Current Board Member of:Novo Swiss AG,Switzerland,Ace Swiss AG,Switzerland,Gryphon Investment AG,Switzerland,supervisory Board of iSi Automotive Holding GmbH,Austria,Privatstiftung Lauda,Austria,Attila Dogudan Privatstiftung,Au

172、stria,FIPO Privatstiftung,Austria,Pochtler Privatstiftung,Austria,JUST 4 Privatstiftung,Austria,MeSoFa Privatstiftung,Austria;and THY DO&CO ?kram Hizmetleri Anonim irketi,Turkey.Appointed Non-Executive Director of the Company on 22 March 2023.Directors Report(continued)20AINSWORTH GAME TECHNOLOGY LI

173、MITEDfor the year ended 31 December 20232.COMPANY SECRETARYMr Mark L Ludski has held the position of Company Secretary since 2000.Mr ML Ludski previously held the role of Finance Manager with another listed public company for ten years and prior to that held successive positions in two leading accou

174、nting firms where he had experience in providing audit,taxation and business advisory services.Mr ML Ludski is a member of Australian Institute of Company Directors and a Chartered Accountant holding a Bachelor of Business degree,majoring in accounting and sub-majoring in economics.Mr ML Ludski was

175、previously a member of the Remuneration and Nomination Committee and is currently a member of the Regulatory and Compliance Committee,a role held since 2021.3.DIRECTORS MEETINGSThe number of directors meetings(including meetings of committees of directors)and number of meetings attended by each of t

176、he directors of the Company during the financial year are:Board MeetingsAudit and Risk Committee MeetingsRemuneration&Nomination Committee MeetingsRegulatory&Compliance Committee MeetingsDirectorsABABABABDE Gladstone121255GJ Campbell12125555CJ Henson1212555544HA Scheibenstock121255HE Asenbauer1010A-

177、Number of meetings attended.B-Number of meetings held during the year(excluding approved leave of absence and meetings held whilst not a director/member).4.PRINCIPAL ACTIVITIESThe principal activities of the Group during the financial year were design,development,manufacturing,sales and distribution

178、 of gaming content and platforms including electronic gaming machines,other related equipment and services and online social and real money games.The Group continues to execute strategies to expand and diversify its product offerings within both land-based and online gaming markets,including social

179、gaming and licensed“Real Money”gambling markets.There were no significant changes in the nature of the activities of the Group during the year.4.1 ObjectivesAinsworth is a well-established and recognised gaming machine developer,designer and manufacturer operating in local and global markets.Our str

180、ategy is built around our mission statement of A Legacy To Create which is to provide high quality innovative gaming solutions globally and to secure sustainable profitability and growth for all stakeholders.The Groups objectives are to:produce games that are appealing to players utilising our broad

181、 range of talented skilled game designers along with collaborations with third party game developers;focus on regaining market share decline in domestic market and growing international revenue;improve profitability within geographical markets that are expected to achieve the greatest contributions

182、to the Groups financial results,and creation of growth;diversify and expand on contributions from recurring revenue through additional units under gaming operation;prudently invest in product research and development in order to provide quality market leading products that are innovative and enterta

183、ining,and result in increased player satisfaction and therefore greater venue profitability;further expand presence within online gaming markets,including social gaming and licensed“Real Money”gambling markets through collaborations with other major online platform providers;prudently manage levels

184、of investment in working capital and further improve cash flow from operations to facilitate investment in growth opportunities;and provide an improved return on shareholder equity through profitability,payment of dividends and share price growth.Directors Report(continued)21ANNUAL REPORTfor the yea

185、r ended 31 December 2023To meet these objectives,the following priority actions will continue to apply in future financial years:grow the Groups footprint and operating activities in domestic and international markets;continual investment in research and development to produce innovative products wi

186、th leading edge technology;implement and actively monitor risk management strategies to minimise risks and challenges arising from post pandemic conditions;manage product and overhead costs through improved efficiencies in supply chain and inventory management;actively pursue initiatives to improve

187、and reduce investment in working capital;maintain best practice compliance policies and procedures and increase stakeholder awareness of the Groups regulatory environment;and ensure retention and development of the Groups talent base.4.2 Environmental RegulationThe Company is not subject to any part

188、icular or significant environmental legislation under the laws of the Commonwealth,State or Territory of Australia or in any of the other jurisdictions that the Group operates in.While the Company is not required to register and report under the National Greenhouse and Energy Reporting Act 2007(Cth)

189、(NGER Act),it continues to receive reports and monitors its position to ensure compliance with the NGER Act.In addition,Ainsworth Game Technology is committed to being compliant with all applicable environmental laws and regulatory obligations relevant to its operations and has policies and procedur

190、es in place that are designed to ensure that those obligations are identified and appropriately addressed.Ainsworth is committed to regularly reviewing and assessing any potential exposures to environmental regulations and ensure meaningful contributions towards sustainable developments are being ma

191、ximised and addressed accordingly.The Company assembles gaming machines and systems in Australia,North America,and Latin America.The Company uses limited amounts of harmful chemicals in its assembly process.During this financial year,the Company has not been prosecuted,is not subject to any proceedi

192、ngs,and has not been convicted of any significant breaches of environmental regulations.The Directors are not aware of any breaches of any environmental legislation or any significant environmental incidents during the financial year.5.OPERATING&FINANCIAL REVIEWDuring the reporting period,there are

193、certain components of the prior half financial statements(i.e.6 months ended 31December2022)that have been restated due to error.Please refer to Note 2 of this financial report for further details.The Group changed its financial year to a calendar year basis ending 31 December,effective 1 January 20

194、23.The comparative period for this financial report is the last audited financial report which is the 6 months period ended 31 December 2022.For the purpose of providing a comparable review of the Groups financial results,this section of the report will outline a compilation for the 12 months ended

195、31 December 2022 financial results which are unaudited.These are based on audited results for the 6months period ended 31 December 2022 and the second half of the audited financial year ended 30 June 2022.5.1 Business Strategy and Investments for Future PerformanceBusiness StrategyAinsworths strateg

196、y has always been built around our mission which is to provide high quality innovative gaming solutions globally and to secure sustainable profitability and growth for all stakeholders.The Group continues to focus on executing its key priority actions as outlined below:employ the best talent availab

197、le to drive effective and efficient product development;grow the Groups footprint and operating activities in domestic and international markets,particularly North America;target investment in research and development to produce innovative products with leading edge technology;manage product and ove

198、rhead costs through improved efficiencies in supply chain and inventory management;and pursue initiatives to continually improve and reduce investment in working capital.The Group entered H2 CY22 with a redefined global team of executive leadership members led by Mr Harald Neumann,the Groups chief e

199、xecutive officer(CEO).Mr Neumanns top priority is to ensure that Ainsworths global team is aligned with the same growth vision which will allow the Group to maintain the momentum achieved in future periods.During the year,under MrNeumanns leadership,he has established a new global organisational str

200、ucture with new product leadership and clear lines of accountability.He has also initiated implementation of a range of measures focusing on technology,development,and culture to improve product performance,lift staff retention rates and enhance AGTs ability to attract world class development talent

201、.Directors Report(continued)22AINSWORTH GAME TECHNOLOGY LIMITEDfor the year ended 31 December 20235.OPERATING&FINANCIAL REVIEW(continued)The Group has shown resilience with a strong balance sheet that will allow the Group to continually invest in talent to develop innovative products and technologic

202、al capabilities to accelerate growth objectives in future periods.Investments for Future PerformanceThe Group continues to evaluate opportunities within domestic and international gaming markets during the period.During the year,the Group expanded A-Star cabinet range with the release of the 32”inch

203、 version and Raptor A-Star in the market.These cabinets were well received and continue to receive positive reviews.Further investments in research and development have been pursued to ensure game developments continue to complement the A-Star hardware range.This investment is expected to assist the

204、 ongoing expansion and breadth of innovative,technically advanced and consistently high performing products.During the year,the Group continued to execute previously identified strategies and plans across its global product development operations,which most notably includes game development,software

205、 and hardware activities.The Group has significantly bolstered its ability to develop highly competitive game content through the expansion of its internal studios with the appointment of additional experienced game developers in Australia and Las Vegas.Furthermore,the Group has in place agreements

206、with third-party game development studios located in various parts of the world to further diversify the Groups game content and complement the innovation capabilities of the Groups internal studios.The Group has now started to secure key regulatory approvals for a new EGM software platform that wil

207、l power the Groups future range of games.This software platform provides a more“off-the-shelf”development environment that allows the Group to deliver a broader and more complex range of gaming content that benefit from the efficiencies provided by modern software development methodologies and tools

208、.This has also enabled the Group to attract new software development talent from a larger pool of highly skilled software developers.On 29th March 2023,an amended and restated integration and content distribution agreement(“Amended Agreement”)with Game Account Network(GAN)was executed,replacing the

209、previously executed Content Distribution Agreement(“Previous Agreement”).Under the Previous Agreement,the Group provided GAN(Game Account Network)with the exclusive use of current and future Ainsworth real money online game assets within the U.S.for a minimum guaranteed consideration of US$30 millio

210、n for a period of 5 years,commencing 1st July 2021.Under the Amended Agreement,this exclusivity with GAN terminates on 31st March 2023,instead of 1st November 2026 and the Group has received additional compensation of 1,250,000 ordinary shares in GAN.The Amended Agreement has triggered a reassessmen

211、t of revenue recognition and as a result,additional revenue of$1.9 million has been recognised in the current period.Revenue from GAN accounts for 69%of total Online Revenue.Ainsworths acquisition of MTD Gaming Inc.in 2020,a Montana-based game development company that specialises in video poker and

212、keno products continues to positively contribute to the Groups financial results.Ainsworth has since rebranded these lines of products as Gamblers Gold which are now deployed in Nevada and California.In 2023,Ainsworth extended an exclusivity agreement in Montana with Golden Entertainment(acquired by

213、 J&J Ventures)for an additional 12 month period.This gives J&J the sole right to commercialise Ainsworths market leading multi game sets utilising their own proprietary trademark of Montana Gold.At G2E 2023 Ainsworth displayed the new Bear Elite slant top cabinet as the next generation of cabinet to

214、 be utilised with the Gamblers Gold game suite.The Groups Class II Historical Horse Racing(“HHR”)products continues to be placed into existing and new markets,with Ainsworth continuing to integrate products from other manufacturers such as IGT,Light n Wonder and Konami.This niche product has been a

215、top performer in its class since its initial launch and continues to outperform its competitors.Ainsworth continues to be a market leader in HHR with expansion into New Hampshire and Alabama as well as additional locations in Kentucky and Wyoming.Expansion of HHR in Kansas will be pursued in 2025.Ad

216、ditional Class II opportunities in Massachusetts and Ontario are being pursued in 2024.The synergies and benefits with the Groups majority shareholder,Novomatic AG(NAG),are continuing to be explored.During the year,Ainsworth signed an online game development with Greentube,a subsidiary of Novomatic,

217、whereby Ainsworth develops and hosts Novomatic games through Ainsworths proprietary remote gaming server in the Online Real Money Gaming market within North America.Opportunities to cooperate for technical,commercial,and content sharing are continually being pursued for both companies.During the yea

218、r,games developed by NAGs game studio,Octavian,have been launched into Americas on Ainsworths hardware and these games have been the top performing games for Ainsworth in the Latin America market.Directors Report(continued)23ANNUAL REPORTfor the year ended 31 December 20235.2 Risk management and mat

219、erial risksThe Group encounters a range of risks that may threaten its ability to meet its objectives.To address these risks the Group has in place a detailed risk management procedures that detail the objectives and actions required to deliver a best practice approach to integrating risk management

220、 into the Groups leadership,business planning,staff culture and day-to-day operations.Key responsibility for ensuring the Group adheres to its risk management procedure rests with the Board and the Groups Audit and Risk Committee.The Audit and Risk Committee reviews the risks identified and assessed

221、 by management.The key risks identified during this process of review are provided to the Board.Below is a table that summarises the key risks that have been identified by the Group,along with a summary of the required actions to reduce the likelihood or the consequences for the business should any

222、of these risks eventuate.RiskDescriptionMitigation MeasuresBreach of laws,regulations,and license conditionsAny material breach or failure to meet gaming compliance requirements and the requirements of any other applicable laws may have an adverse impact on the financial performance and operating po

223、sition of the Group.The Group maintains robust regulatory compliance oversight across all business functions to ensure the Groups dealings with government,regulatory bodies,customers and suppliers are conducted lawfully and with integrity and respect for all stakeholders.Internal auditor periodicall

224、y reviews and provides independent assurance regarding the adequacy of controls and processes for managing risk and compliance obligations.Employees and managers are provided with training and support to enable them to effectively manage their risk and compliance obligations.The Group regularly revi

225、ews its policies and procedures to ensure they support the objective of ongoing compliance with all applicable laws.A recent review of these policies and procedures identified a requirement for greater oversight of the Groups activities in higher risk jurisdictions.The outcome of this review is on-g

226、oing to ensure actions to mitigate identifiable risks have been addressed.The introduction of new laws,regulations or requirements that result in adverse outcomesChanging community attitudes towards gaming risk,the occurrence of adverse government or regulatory action against the Group or the gaming

227、 industry.Proactive support by the Group for measures supported by evidence as to their effectiveness that promote responsible game play.Engagement through the manufacturer peak body,the Gaming Technologies Association Limited,with governments,regulators and academics/researchers in the development

228、of evidence-based policy outcomes.Attraction and retention of talented employees The Group has experienced heightened competition for talent in all areas of operation.This has been exacerbated by inflationary impacts and evolving employee requirements,placing the Group at risk of losing employees pa

229、rticularly those employees that hold strategically important functions that are difficult to replace.The Group is providing greater investment in the Groups global human resource management capabilities.The Group continually conducts employee salary and incentive benchmarking across all core functio

230、ns.The Group allows adoption of flexible work policies.Adopting a mix of employee rewards and incentives that are directed towards long-term employee retention.There is also increased investment in employee training,employee diversity and leadership development.Directors Report(continued)24AINSWORTH

231、 GAME TECHNOLOGY LIMITEDfor the year ended 31 December 2023RiskDescriptionMitigation MeasuresGlobal supply chain disruptionGlobal supply chain challenges have impacted the Groups operations in all major markets resulting in customer order fulfillment delays.The Groups global supply chain team is aut

232、horised to rapidly respond to market conditions as they evolve.The Group is continually identifying and where feasible using domestically based suppliers,or identifying alternate suppliers based in regions that carry less sovereign or geopolitical risk.Ongoing engagement with key suppliers to streng

233、then relationships and ensure delivery commitments are met.Enhancement of business resilience measures.Cyber security breach resulting in business disruption and financial lossThe Groups businesses rely on the successful operation of its technology infrastructure.This infrastructure may be adversely

234、 affected by various factors including malicious attacks on technology systems or a significant hardware,software,or digital failure.In addition,the global requirement to work from home and or rely on digital solutions to maintain operations during the pandemic has caused a rapid rise in the frequen

235、cy and sophistication of cyber-attacks.The Group has policies,procedures,practices,frameworks,and resources in place to manage data security risks.The Group has disaster recovery plans and business continuity plans in place to manage major technology failures.The Group has implemented a global cyber

236、 security protection roadmap.It continues to rollout best practice global cybersecurity tools and data breach identification and protection measures.All employees are required to undertake an ongoing global information security training program to minimise the risk of human error(the main cause of c

237、yber security attacks).Loss of IP rightsInability to protect the Groups intellectual property rights(IPR)may prevent the Group from effectively differentiating its product lines from those of its competitors,resulting in a loss of competitive advantage.Proactive monitoring of competitor activities v

238、ia product monitoring and the“watching”of competitor IP registrations in core markets.Targeted enforcement of IPR breaches where identified.Ongoing investment in the skills and capabilities of the Groups IPR specialist employees.Litigation risksFrom time to time the Group become involved or may beco

239、me involved in litigation and disputes with third parties.The Group maintains on staff specialist legal compliance and regulatory personnel and implements robust risk,compliance and contract management processes.Foreign currency exposureThe Group is exposed to foreign currency exchange rates due to

240、the economic and political uncertainties in the LATAM region where the group operates in.The Group proactively monitors the foreign currency fluctuation and implements hedging strategies to mitigate this risk.Market disruption and competitionA failure to adequately respond to market disruption and r

241、ising competition in any or all core markets will impact the Groups market share and revenues.The Group has recruited leading industry talent as part of its increased investment in its global design and development function.The Group undertakes regular and ongoing reviews of customer requirements,te

242、chnology changes and competitor activities.The Group has established management KPIs and incentives that support the development of innovative and differentiated product lines in all global markets.5.OPERATING&FINANCIAL REVIEW(continued)Directors Report(continued)25ANNUAL REPORTfor the year ended 31

243、 December 20235.3 Review of Financial ConditionCapital structure and treasury policyThe Company currently has on issue 336,793,929 ordinary shares.The Board continues to ensure a strong capital base is maintained to enable investment in the development of the business.The Groups performance is monit

244、ored to oversee an acceptable return on capital is achieved and dividends can be provided to ordinary shareholders in future periods.There were no changes in the Groups approach to capital management.The Group is exposed to translational foreign currency risks that are denominated in currencies othe

245、r than AUD.The Group continually monitors and reviews the financial impact of currency variations to minimise the volatility of changes and adverse financial effects in foreign currency exchange rates.During the reporting period,investments were made in Argentina to hedge the devaluation of the Arge

246、ntinian(“ARG”)Pesos against the US Dollar as well as the increased limitations within Argentina to restrict the transfer of monies held in this region.The macro-economic conditions in Argentina continued to be challenging and affected the recoverability of this investment in Argentina.The Group base

247、d on best available information,has fully written down these investments during the period.As there are still other investments being held in Argentina and cash inflows continually expected to be collected from customers within this region,the Group continually monitors the situation and regularly r

248、eviews strategies to minimise currency losses.Cash flowsThe movement in cash is set out as below:In millions of AUD12 months ended31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Profit before tax2.69.2(6.6)7.3 Net interest income(6.3)(4.1)(2.2)(3.3)De

249、preciation and amortisation23.8 22.3 1.5 10.9 Change in working capital(20.0)(37.2)17.2(36.1)Subtotal0.1(9.8)9.9(21.2)Interest and tax paid(4.1)1.8(5.9)0.4 Other cash and non-cash movements31.9 23.4 8.5 15.5 Net cash generated from/(used in)operating activities27.9 15.4 12.5(5.3)Directors Report(con

250、tinued)26AINSWORTH GAME TECHNOLOGY LIMITEDfor the year ended 31 December 20235.OPERATING&FINANCIAL REVIEW(continued)In millions of AUD12 months ended31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Net cash generated from/(used in)operating activities2

251、7.9 15.4 12.5(5.3)Acquisitions of property,plant and equipment(11.2)(2.9)(8.3)(2.0)Development expenditure(4.9)(3.3)(1.6)(1.9)Proceeds from sale of investments in financial assets3.1 3.1 Investment in financial assets(16.8)(9.8)(7.0)(4.9)Proceeds from sale of property,plant and equipment0.1 0.1 0.1

252、Interest received 0.1(0.1)Net cash used in investing activities(29.7)(15.8)(13.9)(8.7)Proceeds from borrowings0.4 0.6(0.2)0.4 Repayment of borrowings(0.6)(15.0)14.4(0.4)Proceeds from finance lease liabilities 0.8(0.8)0.7 Payment from finance lease liabilities(1.7)(2.1)0.4(1.1)Borrowing costs paid(0.

253、9)(1.4)0.5(0.6)Net cash used in financing activities(2.8)(17.1)14.3(1.0)Net change in cash(4.6)(17.5)12.9(15.0)Cash movements for 12 months ended 31 December 2022 are unaudited.The net decrease in cash predominantly relates to net cash from investing activities,which was attributable to investments

254、in financial assets made during the period.These investments predominantly were made in Argentina during the year,$13.2 million of these investments were fully written down following difficulties faced by the investment company to meet its payments obligations.Additional CAPEX was incurred in the cu

255、rrent period for tooling development costs for the new A-Star cabinet range released during the year and leasehold improvements undertaken at the Newington,Sydney facility.Liquidity and fundingAt 31 December 2023,the Group held cash of$19.8 million,down from the$29.9 million reported at 31 December

256、2022(restated).The Group maintained strong overall liquidity and balance sheet over the reporting period.The Group also has a secured bank loan facility of US$32.0 million with Western Alliance Bancorporation(WAB).In this facility,the Companys US-based operating subsidiary,Ainsworth Game Technology

257、Inc.,is established as the borrower and party to the relevant credit agreements while its parent entities within the AGT Group of companies,AGT Pty Ltd and Ainsworth Game Technology Limited,serve as guarantors.This facility is currently undrawn.During this reporting period,all financial covenants we

258、re met.Directors Report(continued)27ANNUAL REPORTfor the year ended 31 December 20235.4 Earnings and Performance SummaryThe Group delivered a statutory net loss after tax of$6.5 million in the twelve months ended 31 December 2023(“CY23”),compared to the net profit after tax of$10.2 million profit re

259、corded in the 12 months ended 31 December 2022(“CY22”).The current year results were adversely impacted by foreign currency loss of$21.5 million recorded in CY23,compared to$2.6 million gain in CY22.The profit after tax,excluding the effect of net foreign currency movement was$9.5 million,an increas

260、e on the$7.7 million profit recorded in CY22.The current year profit before tax,excluding the effect of net foreign currency movement was$24.1 million,an increase of$17.5 million compared to CY22.The following table summarises the results for the year:In millions of AUD12 months ended31 Dec 2023(CY2

261、3)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Reported results Total revenue284.9243.641.3124.1Profit before tax2.69.2(6.6)7.3(Loss)/profit after tax(6.5)10.2(16.7)2.7EBITDA20.127.4(7.3)14.9EBIT(3.7)5.1(8.8)4.0Earnings per share(fully diluted)(1.9 cents)3.0 cents(

262、4.9 cents)0.8 centsUnderlying results(1)Profit before tax41.537.63.918.8Profit after tax26.335.3(9.0)12.3EBITDA59.055.83.226.4Balance sheet and cash flow Total assets418.4427.3(8.9)427.3Net assets315.6321.9(6.3)321.9Operating cashflow27.915.412.5(5.3)Closing net cash19.429.3(9.9)29.3(1)Underlying re

263、sults excludes foreign currency impacts and one-off items that are outside the ordinary course of business.These items are outlined as follows.Directors Report(continued)28AINSWORTH GAME TECHNOLOGY LIMITEDfor the year ended 31 December 20235.OPERATING&FINANCIAL REVIEW(continued)In millions of AUD12

264、months ended31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Foreign currency(losses)/gains(21.5)2.6(24.1)(2.1)GAN exclusivity revenue1.9 1.9 Write-down of investment in financial assets(13.2)(13.2)Impairment of non-current assets(6.1)(9.1)3.0(3.9)Prov

265、ision for Mexican duties and other charges(22.0)22.0(5.5)Rent concessions 0.1(0.1)Total currency and one-off items(38.9)(28.4)(10.5)(11.5)*The increase in provision for Mexican duties and other charges recognised in this reporting period relates to CPI and other adjustments and therefore has not bee

266、n considered as one-off item.Reconciliation of Underlying Profit after taxIn millions of AUD12 months ended31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)(Loss)/profit after tax(6.5)10.2(16.7)2.7Foreign currency losses/(gains)16.0(2.5)18.51.3GAN excl

267、usivity revenue(1.5)(1.5)Write-down of investment in financial assets13.2 13.2 Impairment of non-current assets5.18.2(3.1)3.4Provision for Mexican duties and other charges 19.5(19.5)4.9Rent concessions(0.1)0.1 Profit after tax adjusted for currency and one-off items26.335.3(9.0)12.3Key earnings and

268、performance highlights are outlined below:Reported revenue improvement in CY23 compared to CY22 across all regions,predominantly attributable to the North America and Latin America regions;Rental and participation revenue contributed to 24%of the Groups total revenue;Ainsworths leading Historical Ho

269、rse Racing(“HHR”)products and system continues to incrementally contribute to the Groups results with recurring connection fee of$25.4 million reported in this period;Outright sales momentum continued across all major markets;Net cash position of$19.4 million at 31 December 2023 compared to$29.3 mil

270、lion at 31 December 2022(restated);Unfavourable foreign exchange rate predominately relating to the devaluation of investments held in Argentina and strengthening of the Mexican Pesos against USD relating to Mexican Tax Authority(“SAT”)provision;and Improvement in underlying profit before tax and EB

271、ITDA,driven by increase in revenue and gross margin in Americas.Directors Report(continued)29ANNUAL REPORTfor the year ended 31 December 2023Net Profit After Tax movement CY22 to CY23(A$million)The Group reported a loss after tax of$6.5 million compared to$10.2 million profit after tax,driven by adv

272、erse foreign currency loss and higher income tax expense recorded during this current period.Notable movements from NPAT in this period when compared to 31 December 2023 are set below:Increase in Class III product sales in Latin America;Increase in gaming operations revenue contribution from North a

273、nd Latin America;Increase in overheads with additional headcounts occurred in CY2023,with full costs reflected in CY23 for expansion of game studios and related direct selling costs from increase revenue;Increase in COGS driven directly by increase in revenue.Gross margin maintained compared to CY22

274、;Other expenses in CY23 predominantly represents$1.5 million for provision for the Mexican duties and other charges,an overall reduction from the other expenses recognised in CY22.Other expenses in CY22 predominantly represented$22.0million for provision for the Mexican duties and other charges;Tax

275、expense of$9.1 million recognised for the period,compared to$1.0 million income tax benefit recognised in CY22;and Unfavourable foreign exchange rate predominately relating to the devaluation of investments held in Argentina and strengthening of the Mexican Pesos against USD relating to Mexican Tax

276、Authority(“SAT”)provision.Profit After TaxProductsalesLicensefeesGamingoperationsServicerevenueOtherincomeOverheadsD&AWrite-downof investmentin financial assetsImpairmentof non-currentassetsOtherexpensesForexNet interestTaxLoss AfterTaxCOGSMillions of AUD706050403020100-1010.225.23.66.46.120.815.31.

277、513.23.02.220.924.110.16.50.9Directors Report(continued)30AINSWORTH GAME TECHNOLOGY LIMITEDfor the year ended 31 December 20235.OPERATING&FINANCIAL REVIEW(continued)$0002023H2 2022202220212020Revenue$284,862$124,147$220,157$159,520$149,396(Loss)/profit attributable to owners of the Company($6,542)$2

278、,642$16,690($53,409)($43,433)Dividends paidChange in share price($A)$0.23$0.13($0.28)$0.83($0.26)Net(loss)/profit amount for all years as shown above have been calculated in accordance with Australian Accounting Standards Board(AASB).2023 represents the twelve months ended 31 December 2023 results,H

279、2 2022 represents the six months ended 31 December 2022 financial results and 2020 to 2022 represents the twelve months ended 30 June financial results(prior to change of financial results).Any restatements outlined in this financial report have been incorporated in the numbers above.5.5 Review of P

280、rincipal BusinessesResults in the current period and prior corresponding period are summarised as follows:In millions of AUD12 months ended 31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Segment revenueAsia Pacific48.847.71.124.9North America140.4120

281、.220.259.7Latin America&Europe80.163.416.733.1Online Gaming15.612.33.36.4Total segment revenue284.9243.641.3124.1Segment resultAsia Pacific3.45.1(1.7)2.3North America65.059.35.730.9Latin America&Europe33.121.112.010.4Online Gaming14.010.83.25.5Total segment result115.596.319.249.1Unallocated expense

282、sNet foreign currency(losses)/gains(21.5)2.6(24.1)(2.1)Research and development expenses(45.7)(36.7)(9.0)(19.4)Administrative expenses(28.3)(23.0)(5.3)(12.9)Write-down of investment in financial assets(13.2)(13.2)Impairment of non-current assets(6.1)(9.1)3.0(3.9)Other expenses(1.5)(22.1)20.6(5.5)Tot

283、al unallocated expenses(116.3)(88.3)(28.0)(43.8)Less:interest included in segment result(2.9)(2.9)(1.3)EBIT(3.7)5.1(8.8)4.0Net interest income6.34.12.23.3Profit before tax2.69.2(6.6)7.3Income tax(expense)/benefit(9.1)1.0(10.1)(4.6)(Loss)/profit after tax(6.5)10.2(16.7)2.7*Note segment results repres

284、ents Gross Profit less Sales,Service and Marketing expenses.Directors Report(continued)31ANNUAL REPORTfor the year ended 31 December 2023SEGMENT RESULT AS A%OF REVENUEThe Groups consolidated segment result has remained fairly consistent around 41%.The earnings performance in the Americas now represe

285、nts 85%($98.1 million)of the total segment result compared to 83%($80.4 million)in CY22.The uplift in the Americas contribution to the total segment result was a result of increased outright sales generated from Argentina which are driven by strong performance.North America contributed strongly to t

286、he Groups result but has a lower segment result as a percentage of revenue due to different product mix resulting in higher costs of sales in the current period.Overhead costs pressures and strong USD affecting costs of materials affected the Asia Pacific segment margin.Online segment margin remaine

287、d consistent with prior periods.NORTH AMERICA52%31%9%86%88%89%40%40%41%11%7%33%41%49%46%LATIN AMERICA/EUROPEASIA PACIFICONLINEAGT GROUPCONSOLIDATED6 months ended 31 Dec 202212 months ended 31 Dec 202212 months ended 31 Dec 2023Directors Report(continued)32AINSWORTH GAME TECHNOLOGY LIMITEDfor the yea

288、r ended 31 December 20235.OPERATING&FINANCIAL REVIEW(continued)Financial performance in the current period and prior corresponding period is summarised as follows:In millions of AUD12 months ended 31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Domest

289、ic revenue39.845.4(5.6)23.2International revenue245.1198.246.9100.9Total revenue284.9243.641.3124.1Cost of sales(109.6)(92.7)(16.9)(44.4)Gross profit175.3150.924.479.7Gross profit margin%62%62%64%Other income1.10.20.90.4Sales,service&marketing expenses(64.5)(58.1)(6.4)(31.1)Research and development

290、expenses(45.7)(36.7)(9.0)(19.4)Administrative expenses(28.3)(23.0)(5.3)(12.9)Writeback/(impairment)of trade receivables0.80.30.5(1.2)Write-down of investment in financial assets(13.2)(13.2)Impairment of non-current assets(6.1)(9.1)3.0(3.9)Other expenses(1.6)(22.0)20.4(5.5)Net foreign currency(losses

291、)/gains(21.5)2.6(24.1)(2.1)Net interest income6.34.12.23.3Profit before tax2.69.2(6.6)7.3Income tax(expense)/benefit(9.1)1.0(10.1)(4.6)(Loss)/profit after tax(6.5)10.2(16.7)2.7Directors Report(continued)33ANNUAL REPORTfor the year ended 31 December 2023RevenueRevenue by financial periodAinsworths ke

292、y market,North America,continues to show strong revenue growth contributing$140.4 million which represented 49%of the Groups total revenue,similar to CY22.Historical Horse Racing(“HHR”)high performing products continue to positively contribute to revenues within this segment.As at 31 December 2023,a

293、 total of 8,118 HHR units were connected to Ainsworths HHR system generating recurring revenue(31 December 2022:5,510 units).Gamblers Gold products(keno and poker based games)through acquisition of MTD Gaming Inc.in March 2020,have continued to positively contribute to the North America segment prof

294、it.During the year,the Group also extended its contract with Golden Gaming(acquired by J&J Ventures)for another year(up to October 2024)of exclusivity at Montana.Despite challenging local operating environments in Latin America,progressive improvement has been achieved within this region with improv

295、ed game performance.Revenue improved by 26%in the current period when compared to CY22.Participation and lease revenue also increased by 14%in the current period.Asia Pacifics revenue in the current period was similar compared to CY22.Lower unit sales were achieved in Australia during the current pe

296、riod,in particular Queensland and Victoria,with minimal corporate sales contribution and competitive market conditions.Asia and New Zealand sales improvement during the current period resulted from change in sales strategy structure,assisted in offsetting the revenue decline in Australia.The amended

297、 agreement for GAN as outlined previously has contributed additional revenue of$1.9 million for the online segment that has been recognised in the current period.Revenue from GAN accounts for 69%of the total Online revenue during this current period.Cost of sales and operating costsGross profit marg

298、in of 62%was maintained in this period compared to CY22 despite global cost pressures on materials as increase in average selling prices across the Group have offset these pressures.Operating costs,excluding cost of sales,other expenses,(writeback)/impairment of trade receivables,and financing costs

299、 for the current period were$138.5 million compared to$117.8 million in CY22.These operating costs over total revenue reported were 49%,consistent with CY22.The Group continues to implement cost control measures to ensure maximum return on expenditure.Sales,service and marketing(SSM)expenses in the

300、current period were$64.5 million compared to$58.1 million in CY22.The increase in SSM expenses is directly attributable to increased variable selling costs,personnel costs and marketing costs.Research and development(R&D)expenses in the current period were$45.7 million compared to$36.7 million in CY

301、22.Increase in R&D expenses were mainly attributable to evaluation and testing,personnel costs and engagement of new game studios in Americas.The Groups strategic investment in R&D talent remains to be the Groups top priority to ensure Ainsworth remains competitive in the industry,delivering high qu

302、ality products.North AmericaLatin America/EuropeAsia PacificOnlineMillions of AUD3002501502001005006 months ended30 Jun 20226 months ended31 Dec 20226 months ended30 Jun 20236 months ended31 Dec 2023CY2022CY2023Directors Report(continued)34AINSWORTH GAME TECHNOLOGY LIMITEDfor the year ended 31 Decem

303、ber 20235.OPERATING&FINANCIAL REVIEW(continued)Administration costs were$28.3 million in the current period compared to$23.0 million in CY22.This increase was primarily due to an increase in personnel costs,IT expenses and professional fees.Cost control initiatives are continually being implemented

304、to ensure that administration costs remain relevant to the Groups overall profitability.Interest income and expensesNet interest income was$6.3 million in the current period,compared to$4.1 million income CY22.Interest income was$7.2 million in the current period compared to$5.5 million in CY22.The

305、interest income includes$4.4 million received in the Groups investments in Argentina and$2.8 million received from customers predominately relating to the Latin America region.Interest expenses were$0.9 million in the current period compared to$1.4 million in CY22.The reduction in interest expense w

306、as driven by no interest paid on the debt facility as no loan was drawdown in CY23.Segment reviewNorth AmericaIn millions of AUD12 months ended 31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Revenue140.4120.220.259.7Gross Profit94.882.212.643.4Segmen

307、t EBITDA78.570.58.036.7Segment Profit65.0 59.3 5.730.9Segment Profit(%)46%49%(3%)52%North America segment profit percentage decreased by 3%to$65.0 million compared to CY22,despite an increase in revenue of 17%.This decrease in segment result was a result of increased costs of sales and change in mix

308、 of revenue contribution affecting gross profit during this period.Higher proportion of sales,service and marketing costs directly attributable to the revenue increase also impacted margin.Also contributing to the reduced segment profit was the expected credit loss of trade receivables recognised du

309、ring the current period of$0.3 million in comparison to the writeback of impairment on trade receivables of$1.5 million in the prior half,contributing a$1.8 million increase in costs.Participation and lease revenue was$47.1 million in the current period compared to$43.5 million in CY22,an 8%increase

310、.The average fee per day comprising of participation and fixed lease of Class II,III and HHR machines was US$31,a reduction from the US$33 previously reported for six months ended 31 December 2022.The drop in performance in Class III installed base affected this fee per day,however,additional Class

311、II installed base which has higher average fee per day assisted in the overall increase in participation and lease revenue.There has been an increase in the total gaming operation units placed under Class II machines at 31 December 2023(2,272 units)compared to 31 December 2022(1,979 units).Key game

312、titles from the high denomination game suites,particularly the Super Charged 7s classic and Thunder Cash,continue to drive sales momentum.High performing HHR products continue to contribute to the revenue growth in this segment.As at 31 December 2023,a total of 8,118 units(31 December 2022:5,510 uni

313、ts)were installed in various markets on the Groups HHR system,generating recurring connection fees.The new property opening in VictoryLand in Alabama and additional placements in new and existing Kentuckys properties contributed to these additional 2,608 placements opportunities in this highly profi

314、table market segment.Ainsworths Gamblers GoldTM products(poker,keno and video reel content for use in Multi Game and Video Lottery Terminal(VLT)markets)continue to positively contribute to the North America market segment.The game set released in South Dakota and Louisiana continues to perform in th

315、is market and contributed to the majority of the revenue achieved in the current period.Next generation of Gamblers GoldTM will incorporate successful San BaoTM slot content and additional Keno options.Directors Report(continued)35ANNUAL REPORTfor the year ended 31 December 2023Latin America/EuropeI

316、n millions of AUD12 months ended 31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Revenue80.163.416.733.1Gross Profit50.040.29.821.8Segment EBITDA32.319.712.69.7Segment Profit33.1 21.1 12.010.4Segment Profit(%)41%33%8%31%Despite macro-economic conditio

317、ns in Argentina continuing to be challenging which affected the recoverability of the investment in Argentina,the Latin America segment has delivered improvement in results.During the current period,a total of 2,264 units were sold compared to 1,918 units in CY22,driving revenue up by 26%in the curr

318、ent period.As at 31 December 2023,there were 4,132 game operations units installed compared to 3,690 at 31 December 2022.The increase in machines placed under participation and lease were predominantly from Mexico and Peru due to improvement in product performance.The majority of the incremental in

319、game operations units occurred in last quarter of CY24.Participation and lease revenue in the current period was$22.6 million,compared to$19.8 million in CY22.The improvement in segment profit is directly attributable to the increase in revenue,leveraging off fixed costs.The demand continues to grow

320、 for the A-STARTM range of cabinets,coupled with high performing game titles such as Pan ChangTM,Cash StacksTM,Xtension LinkTM and Multi-WinTM Games.Asia PacificIn millions of AUD12 months ended 31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Revenue4

321、8.847.71.124.9Gross Profit14.915.5(0.6)8.0Segment EBITDA4.16.6(2.5)3.1Segment Profit3.4 5.1(1.7)2.3Segment Profit(%)7%11%(4%)9%This segment delivered revenue of$48.8 million in the current period,a slight increase from CY22 of$47.7 million.Despite competitive market conditions,higher average selling

322、 price was achieved for this segment during the current period.The introduction of the A100(from the A-star range)which exclusively contributed to all quarter 4 of CY23 sales demonstrated a positive uptake for this cabinet which was showcased at the Australian Gaming Expo in August 2023.The low segm

323、ent profit for Asia Pacific of 7%in the current period was a result of ongoing inflationary pressures,fixed cost base with lower revenue contribution and weakening of AUD against USD adversely impacting costs of productions and gross profit which contributed to the drop in segment profit in the curr

324、ent period.Increase in unit sales related to Asia with market recovery post pandemic offset the reduction of sales from Australia.Change in sales distributor and new venue openings specifically in Philippines is expected to drive revenue in this market in future periods.Directors Report(continued)36

325、AINSWORTH GAME TECHNOLOGY LIMITEDfor the year ended 31 December 20235.OPERATING&FINANCIAL REVIEW(continued)OnlineIn millions of AUD12 months ended 31 Dec 2023(CY23)12 months ended 31 Dec 2022(CY22)CY23 vs CY226 months ended 31 Dec 2022(H2 CY22)Revenue15.612.33.36.4Gross Profit15.612.33.36.4Segment E

326、BITDA14.010.83.25.5Segment Profit14.0 10.8 3.25.5Segment Profit(%)90%88%2%86%Online revenue increased during the current period to$15.6 million compared to$12.3 million in CY22.The revenue increase in the current period predominately relates to the contract modification resulting from the amendment

327、on the GAN distribution agreement on 29th March 2023.Despite the revenue increase of 27%,the Group during the year invested in more talent to remain competitive in the online industry,resulting in a similar segment profit margin.5.6 Significant Changes in the State of AffairsAs advised and communica

328、ted to the Australian Stock Exchange(“ASX”)on 2 June 2022,the Board has determined to amend the Companys financial year end from 30 June to 31 December,a calendar year basis.This change will align with the financial reporting schedule of overseas operations and industry business cycles.The Companys

329、majority shareholder,Novomatic AG,reports on a calendar basis and the alignment of reporting periods will also reduce duplication of financial reporting processes and increase efficiencies for the Group.The Company has had a six-month transitional financial period beginning on 1 July 2022 and ending

330、 on 31 December 2022.Thereafter,from 1 January 2023,the Company will be on a twelve-month financial year,commencing on 1 January and ending on 31 December.Other than the matter noted above,there were no significant changes in the state of affairs of the Group during the financial year.5.7 Impact of

331、Legislation and other external requirementsThe Group continues to work with regulatory authorities to ensure that the necessary product approvals to support its operations within global markets are granted on a timely and cost-effective basis.The granting of such licenses will allow the Group to exp

332、and its operations.The Group aims to conduct its business worldwide in jurisdictions where gaming is legal and commercially viable.Accordingly,the Group is subject to licensing and other regulatory requirements of those jurisdictions.The Groups ability to operate in existing and new jurisdictions co

333、uld be adversely impacted by new or changing laws or regulations and delays or difficulties in obtaining or maintaining approvals and licenses.6.DIVIDENDSNo dividends were declared and paid by the Company for the year ended 31 December 2023(31 December 2022:nil)7.EVENTS SUBSEQUENT TO REPORTING DATEThere has not arisen in the interval between the end of the financial year and the date of this repor