Presentation - Entertainment Gaming Asia

Serving Emerging Gaming Markets in Asia
April 2015
NASDAQ Listed
EGT
Disclaimer
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Safe Harbor Statement
Forward Looking Statements: This presentation contains forward-looking statements concerning Entertainment Gaming
Asia Inc. (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended.
Those forward-looking statements include statements regarding expectations for the Company’s slot operations business
model, growth of the gaming industry in Asia, the Company’s ability to secure new gaming projects and fund those
projects, expectations for the increasing profitability of the Company’s gaming chips and plaques operations and
expectations for expanding its business model to new gaming platforms and markets. Such statements are subject to
certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in
such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks
related to the Company’s ability to: place gaming machines at significant levels and generate the expected amount of net
win from the gaming machines placed; identify and implement successful marketing and promotional strategies for the
Company’s gaming projects and identify and successfully develop additional projects; acquire additional capital as and
when needed; identify and implement successful marketing and promotional strategies and obtain and fulfill significant
purchase orders from the customers for the Company’s gaming chips and plaques; successfully improve manufacturing
processes and enhance production efficiencies for the Company’s gaming chips and plaques; adapt to potential changes
in gaming policies and political stability in the countries in which the Company operates and those other risks set forth in
the Company’s annual report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 26, 2015
and subsequently filed quarterly reports on Form 10-Q. The Company cautions readers not to place undue reliance on any
forward-looking statements. The Company does not undertake, and specifically disclaims any obligation to update or
revise such statements to reflect new circumstances or unanticipated events as they occur.
Who Are We?
Company Profile
Gaming company focused on emerging gaming markets in
Asia
Listed on NASDAQ Capital Market under symbol EGT
Market Capitalization of approximately $26 million (as of April
9, 2015)
An indirect, majority-owned subsidiary of a leader in Asian
gaming, Melco International Development Limited (HK:200),
which through its subsidiaries owns interests in major gaming,
hotel and resort properties and projects in Macau, the
Philippines and Russia
Headquartered in Hong Kong with gaming operations in
Cambodia and Philippines and manufacturing facilities in Hong
Kong
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Who Are We?
4
Increased Ownership by a Successful Group
Melco International Development Group
(HK:200)
64.8%
34.2%
Melco Crown Entertainment Limited
(NASDAQ: MPEL)
City of Dreams – Premium Mass
Market
16.7%
Entertainment
Gaming Asia
(NASDQ: EGT)
Mountain China
Resorts
(TSX.V: MCG)
40.7%
MelcoLot
(HKEx:
8198.HK)
86.7%
Jumbo
Kingdom
Altira Macau – VIP Market
5.0%
Orient
Regent
Russia
Gaming
Business
Catering
Business
Mocha – Grind Mass Market
Planned Studio City – Mass Market
Melco Crown Philippines
Gaming Business
Slot
Participation &
Management
and Gaming
Products
Ski Resort
Business
Lottery
Business
In November 2014, Melco increased its
stake in EGT from 38.0% to 64.8%
What Do We Do?
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Multiple Businesses to Drive Growth
Slot participation in
Manufacture, sell
Cambodia and the
Philippines
Approximately
1,600 slots in
operation in a total
of six venues
Where permitted,
slots operate under
our Dreamworld
brand
Multiple
Divisions to:
Best capitalize on
opportunities &
Ensure multiple
revenue streams
fuel growth
Exploring new and complementary
gaming platforms to Melco Group
operations
and distribute
Dolphin casino
currency products
to major casinos in
Asia and Australia
Distribute thirdparty gaming
products in our
markets
What Do We Do?
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Cambodia Gaming Operations
Indochina region (comprises Cambodia,
Laos, Myanmar, Thailand and Vietnam)
has combined population of over 230
million
Favorable economic and tourism trends
Country
GDP
Tourism
2014 2014-19
2014 2011-14
(in mms) CAGR (in mms) CAGR
Cambodia
$16.9
15.9%
4.5
16.0%
Laos
$11.7
17.0%
4.2
15.1%
Thailand
$380.5
9.0%
24.8
8.8%
Vietnam
$187.8
14.4%
7.9
9.4%
Our operations
Dreamworld
Poipet
Thansur
Bokor
NagaWorld

Three venues with a total of over 1,000
slot machine seats in operation

Average daily net win per seat in 2014 of
$123
Data sources: Population: IMF World Economic Outlook Database, October
2014, 2014 projections; GDP: IMF World Economic Outlook Database,
October 2014 projections; in Current USD; Tourism: Respective countries’
departments of tourism projections
What Do We Do?
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Cambodia Gaming Operations
NagaWorld Hotel and Casino
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What Do We Do?
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Cambodia Gaming Operations
Property Description
 Owned by NagaCorp (HK:3918), NagaWorld is located in Cambodia’s capital of Phnom Penh and is
the largest integrated gaming resort in Indochina with consolidated revenues of $404 million in 2014
 Caters to tourists and growing population of foreign passport holders in the area
Contract Terms
 670 slot machine seats in casino prime ground floor slot spaces
 Jointly manage our slots with NagaWorld and receive 25% of their average daily net win per seat and
pay 25% share of the operating costs
 Daily cash collection of our revenue share
 Six-year duration, which commenced in March 2010
What Do We Do?
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Cambodia Gaming Operations
Thansur Bokor Resort and Casino
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What Do We Do?
Cambodia Gaming Operations
Property Description
 Five-star resort developed by leading Cambodian hotelier, Sokha Hotels and Resorts, in the touristcentric Bokor Mountains in the Southern Kampot Province approximately three hours drive from
Phnom Penh and two hours from the Vietnam border
Contract Terms
 Up to 250 EGM seats in prime spaces in the casino (presently approximately140 in operation)
 Jointly manage our slots with Sokha and receive 27% of their average daily net win per seat and
pay 27% share of the operating costs
 Five-year duration, which commenced in May 2012
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What Do We Do?
Cambodia Gaming Operations
Dreamworld Club Poipet
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What Do We Do?
Cambodia Gaming Operations
Property Description
 Stand-alone slot hall (developed by us) to an existing casino in a prominent location in Poipet, a
significant border crossing between Cambodia and Thailand approximately five hours from Phnom
Penh and three hours from Bangkok by car
 Our casino owner partner is a division of ANCO Group, a major conglomerate in Cambodia with
multiple hotel properties in the market
Contract Terms
 Up to 300 slot seats
 Exclusive management control of the slot hall’s development and business operation
 Receive 40% of the average daily net win per seat and pay 40% of the operating costs
 Five-year duration, which commenced in May 2013
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What Do We Do?
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Philippines Gaming Operations
Population of over 99 million people and
locals permitted to gamble
Attractive economic and tourism growth

GDP 2014: $289.7 billion
2014-2019 CAGR: 21.3%

Tourism 2014: 4.8 million
2011-2014 CAGR: 7.3%
Increasing competition due to development
of integrated gaming resorts

Focused on enhancing returns through
targeted marketing programs to maintain
and expand local customer base
Our operations
Club
Leisureworld,
Pampanga
Club San
Pedro,
Laguna
Club
Universal,
Sta. Cruz

Three venues with total of over 500 slot
machine seats in operation

Average daily net win per seat in 2014 of
$71
Data sources: Population: IMF World Economic Outlook Database, October
2014, 2014 projections
GDP: IMF World Economic Outlook Database, October 2014; in Current USD
Tourism: Philippines Department of Tourism
What Do We Do?
Philippines Gaming Operations
Philippines Slot Clubs
Property Descriptions
 Slot venues in greater Manila area targeting local players in their neighborhoods
 Venues owners typically local business men and government gaming regulator PAGCOR serves as
the operator
Typical Contract Terms
 Approximately 140 to 220 slot seats per location
 Revenue share of average daily net win per seat ranges from 15% to 35%
 Initial terms contract terms typically five years with renewal options
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What Do We Do?
Gaming Products Operations
Dolphin Products
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What Do We Do?
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Gaming Products Operations
Dolphin Products - One of a few manufacturers of traditional and RFID gaming
chips and plaques
Full suite of casino currency product offerings with leading-edge, currency grade
security features
Possess patents or patent applications for the manufacturing process of traditional and
RFID gaming chips and plaques in certain countries including Australia, Macau and
Singapore
Expanding product line to provide incremental growth opportunities and ability to
improve competitive positioning with customers
High-security manufacturing facilities located
in Hong Kong close to major customers and
high-growth markets
What Do We Do?
Gaming Products Operations
Dolphin is a highly-regarded brand in Southeast Asia and the Australia region with
significant estimated market share and a prestigious customer base





Macau: 30% estimated market share; Altira, City of Dreams, Galaxy, Venetian
Philippines: 70% estimated market share; City of Dreams Manila and Solaire Resort
& Casino and (Entertainment City, Manila); Hyatt Casino (Manila)
Cambodia: 20% estimated market share; Sokha Vegas (Sihanoukville) and Thansur
Bokor (Kampot)
Australia: 60% estimated market share; Crown Casino (Melbourne), Crown Perth
(Perth), Jupiter's Casino (Broadbeach); SKYCITY Entertainment Group; The Star
(Sydney)
New Zealand: 25% estimated market share; SKYCITY (Auckland)
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What Do We Do?
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Gaming Products Operations
Major planned casino development in next several years in our markets presents
significant opportunity
Planned Casino Resort
Projects
Owner
Country /
Territory
Total
Investment
(US$ Bil)
Est. No.
Tables (1)
Expected
Opening
Melco Russia
Summit Accent/Melco Int'l /Russian Investor
Russia
$0.7
65
mid 2015
Studio City
Melco Crown Entertainment
Macau
$3.2
400
mid 2015
Galaxy Macau Phase II
Galaxy Entertainment Group Limited
Macau
$2.5
500
mid 2015
Louis XIII
Louis III Holdings
Macau
$1.1
66
2016
Wynn Cotai
Wynn Macau Limited
Macau
$4.0
500
2016
MGM Grand Paradise
MGM China Holdings Limited
Macau
$2.9
500
2016
The Parisian
Sands China
Macau
$2.7
450
2016
Manila Bay Resorts
Tiger Resorts Leisure / Robinson's Land Corp.
Philippines
$2.0
500
2016
Crown Perth Expansion
Crown Limited
Australia
$0.6
100
2016
SJM Cotai
SJM Holdings Limited
Macau
$3.9
500
2017
Resorts World Manila Bayshore Travellers International Hotels / Genting HK
Philippines
$1.1
300
2018
Crown Sydney
Crown Limited
Australia
$1.3
120
2019
NagaWorld Russia
NagaCorp.
Russia
$0.4
100
2019
Initial casino currency order for a new integrated gaming resort in Asia with
approximately 300 table games to provide estimated revenue of approximately $3-4
million for traditional or $5-6 million with RFID plus recurring revenue from reorders
Sources: Respective company reports, news sources; Note: Bolded projects represent those developed by Melco/Crown group
(1) Number of tables for Macau projects represent figures previously reported by the respective companies and some remain subject to
confirmation by the Macau government.
What’s Next?
Potential Growth Opportunities
Actively seeking new projects and growth opportunities
Gaming operations

Slot participation and gaming development as well as management contracts

Targeting more established gaming markets in both existing markets where
we have established relationships, market presence and brand equity and in
new markets with high-growth potential
Gaming products

Initial orders for new casinos and gaming accessory distribution opportunities
Exploring new gaming platforms that would be complementary to the Melco Group
subsidiaries and enhance our long-term earnings potential
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Who’s In Charge?
Experienced and Respected Corporate Officers
Clarence Chung - Chairman and Chief Executive Officer
 Chairman and CEO since 2008
 Strong financial and gaming industry experience



Director of Melco International Development Limited (HK:200) and of Melco Crown
Entertainment Limited (NASDAQ: MPEL) as well as chairman and president of Melco Crown
(Philippines) Resorts Corporation (PM:MCP)
Previously held positions of CFO, investment banker and M&A specialist
Named in “The Asian Gaming 50” in 2009-2010 and 2012-2014 by Inside Asian Gaming
 Major investor with 5.8% beneficial ownership
Andy Tsui - Chief Accounting Officer
 Joined in July 2008
 Over 12 years of financial accounting and management experience with U.S. listed companies
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Who’s In Charge?
Industry Savvy Operations Team
Petrica Cozman – General Manager, Cambodia
 Joined in December 2009
 Brings extensive experience in slot machine technology and systems, surveillance systems and
floor management, having held prior senior or management positions at Riviera Casino
Bucharest, Carnival Corporation’s Casino Division, Star Cruise Company and Bond Casino
JY Teo Kean Yin – General Manager, Philippines
 Joined in May 2010
 Brings in-depth knowledge in gaming equipment and operations in the Asian gaming markets,
especially Vietnam and Cambodia, having held prior industry positions for seven years in sales
and project development
Panos Makridis - Senior Vice President, Gaming Products
 Joined in May 2013
 Brings over 15 years of gaming experience, having held senior positions in various capacities at
Crown Limited, Galaxy Entertainment Group and SHFL entertainment (Asia) Limited
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How Have We Done?
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Financial Overview and Corporate Achievements
Progress in efforts to
enhance the potential for
our businesses
• Refined gaming operations strategy to focus on highestpotential opportunities
• Divested low-margin, non-gaming legacy business
• Removed overhang of long-time legacy litigation
• Restructured gaming products manufacturing facilities
and initiated steps to improve production efficiencies
• Completed successful rights offering netting
approximately $14 million in proceeds and making us an
indirect majority-owned subsidiary of Asian gaming
leader, Melco International Development Limited
FY 2014
FY 2013
Consolidated Revenue
22,362
21,555
Gaming Operations Revenue
16,364
18,131
Gaming Products Revenue
5,998
3,424
Adjusted EBITDA
5,080
7,127
Net Loss from Continuing Ops
(2,506)
(1,376)
Period End Cash Balance
17,301
5,301
Period End Debt Balance
-
Note: Figures in US$ thousands and exclude discontinued operations
-
Why Invest?
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Betting on the Future
Operate in emerging
Asian gaming markets
 Favorable economic trends and demographics
 Strong demand for gaming
 Slot operations offer recurring daily or monthly revenue model
Multiple businesses to
drive growth
Experienced
management
Improved financial
flexibility
Benefits of being a
Melco subsidiary
with attractive cash flow potential
 Gaming products business poised to capitalize on major
growth in casino development in our target markets in the
next several years
 Respected senior management team with significant
ownership
 Strong industry knowledge and relationships
 Substantially improved financial flexibility following successful
rights offering in November 2014
 Over $20 million in net cash as of February 2015
 Increased credibility in our markets
 Access to deep relationships and proven industry expertise
 Expanded potential pool of growth opportunities for existing
operations and potentially for new gaming platforms
Questions or Comments?
We Want to Hear from You
Traci Mangini,
SVP Corporate Finance
Ph: (872) 802-4227
Email: [email protected]
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