Good morning everyone, thank you for joining me for the Ainsworth Results Conference Call, for our results for the six months ended since 31st of December 2022. Lynn Mah, our CFO, and Mark Ludski, our Company Secretary, is also on the line today. Lynn formally was appointed to the role of CFO effective by January 1st, 2023. Lynn is not new at to Ainsworth, and has been with the company for approximately 15 years within the finance division. Welcome, Lynn. Thank you. On this call today, I will concentrate my remarks on the key points and the regional review, and Lynn will take you through the financials. At the end of the presentation, we would be pleased to answer any questions. I would like to note that as we have announced, the company will be changing its reporting to a calendar year basis effective, January 1st, 2023. This change has required reporting audited results for the current six months period before effecting the change. All the numbers Lynn and I quote, throughout the call are denominated in AUD. Let's make a start on page five with some highlights of the results. Firstly, I'm pleased to report that Ainsworth has maintained and delivered another solid result, with revenue growth being achieving compared to, both the PCP and the second half of full year 2022. Profit before tax, excluding currency impacts and one-off items, was AUD 18.8 million in the current period. This result is ahead of the AUD 18 million earnings expectation that was outlined at the 2022 annual general meeting in November. It is a further improvement on the profit reported in the PCP at AUD 10 million, and in line with the second half of the full year 2022. The profit after tax reported of AUD 5.9 million includes a currency loss of AUD 1.3 million and one-off items of AUD 8.3 million relating to an additional provision for Mexican duties and non-cash impairment charges. The underlying audited profit after tax, excluding currency and one-off items for the current period, was AUD 15.5 million, which positively compares to AUD 6.1 million reported in the PCP. Ainsworth's cash flow and balance sheet are key priorities for the company. Cash flow from operations was a deficit in the period of AUD 8 million, compared to the surplus of AUD 31 million in the prior period. Net cash at the reporting date was AUD 36.5 million compared to AUD 32.2 million at the same period in 2021. AGT continues to invest in product development, so people and technology, while supporting required levels of working capital to satisfy customer demand. Given the global economic conditions for complementary and to ensure no supply chain disruptions are encountered to project with customer demand. Inventory increased significantly to AUD 90 million, an increase of 32% from June 30, 2022. I would note that we have continued to actively pursue strategies to diversify our supply chains to ensure we can continue to source critical components for machine assembly and ensure no disruption. The board has decided not to declare a dividend, given the company's priority to maintain a strong financial position at the present time. Given the current planned investment in R&D being undertaken, the uncertainties in global supply chain shortages, and continuing inflationary cost pressures, dividends continue to be suspended to ensure strong liquidity. The board confirmed its commitment to recommend paying dividends under its dividend policy when considered appropriate. Let me now turn to the results on page eight. It is encouraging to see the momentum that started last year has continued into the second half of calendar year 2022. Revenue increased to AUD 124.1 million, up 23% on the AUD 100.7 million in the PCP. Revenue increases were achieved across the key regions in Australia and Americas. Reflecting the improvement in trading conditions offshore, international revenue increased by 20% compared to PCP and represents 81% of the group's total revenue. The growth margin improved in the period to 67%, an increase on the 63% reported in both the PCP and second half of 2022. Strong average selling prices and increased revenue from units under gaming operation contributed to the improved margin in the current period. As outlined on page 10, underlying EBITDA was AUD 26.4 million compared to AUD 20.7 million in the PCP. Currency losses in the current period were AUD 2.1 million compared to a gain of AUD 3.5 million in the PCP. One-off items outside normal operations were a loss of AUD 9.4 million resulting from a non-cash impairment charges of AUD 3.9 million relating to Latin America and Australia, and an additional provision of AUD 5.5 million for the potential unpaid Mexican duties and other charges. As in previous periods, these impairment charges to the carrying value of assets are reflecting of a reassessment of discount rates, inflationary cost pressures, and uncertainties inherent in validating expected revenue improvements in future periods within these regions. These factors contributed to a reduction in the available headroom due to a lower recoverable amount for these Cash-Generating Units, CGUs. The impairment charge within Latin America resides from the timing nature of the current business model within the region, where gaming machines are initially placed under operations, which resides in assets requiring assessment for impairment purposes, despite the generation of increased participation revenue prior to the potential conversion to sale. Further, the provision established at June 30, 2022, a reassessment of the Mexican Tax Administration Service audit and review was required at the reporting date. This resulted in an additional amount of AUD 5.5 million being recorded in the current period under the requirements of the applicable accounting standards. The company maintains and is defending its position to both software, including game and hardware, should be considered as a whole for the calculation of regional value content and U.S. origin under the North American Free Trade Agreement. I will now go through the regional review starting on page 18 with North America. North America continued to perform strongly in the current period with revenue of AUD 59.7 million, an increase of 9% on the PCP, representing 59% of total international revenue. High denomination games continue to be a strength of AGT in the United States, with development initiatives initiated to provide greater market share within the low and mid denomination product groupings. Following the success of MDT games in South Dakota, the launch of the games in Louisiana have seen similar success, with 400 units sold in Louisiana and South Dakota in the current period, compared to 100 units in South Dakota in PCP. Further opportunities in Montana are expected in late 2023 following the expiry of an exclusive distribution agreement within the state. Machines under operations in North America has a reporting date. At the reporting date, we are at 2,827, an increase of 10% on full year 2022, primarily through expansion within New Hampshire and Texas, where new placement opportunities occurred in the current period. Machines placed under participation and lease, including connection fees which generate recurring revenue, contributed 5%-59% of segment revenues. Historical horse racing products continue to perform with 5,510 units connected to AGT's HHR system at 31st of December 2022, anticipate further growth as new installation occur in Kentucky and Alabama during calendar year 2023. Strong average selling prices and increased recurring revenues, along with disciplined cost controls, resulted in a rise in segment profit to AUD 30.9 million versus AUD 23.1 million in the PCP, up 34%. Positive progress and signs of recovery continued in several countries in the Latin American region, with further momentum and an improved performance overall. With venue reopenings in Mexico and positive contribution from Peru and Argentina, revenue of AUD 33.1 million was achieved, an increase of 49% on the AUD 22.2 million in PCP. Unit sales were 908 in the current period with conditioned units representing 20% compared to 39% in the PCP and 33% in the second half of 2022. This contributed to the strong ASP and gross margin in the current period. As we previously foreshowed, Mexico, traditionally AGT's largest contributor to the region, contributed to 26% of unit sales, compared to 10% in the PCP. It is expected that this market will provide an increased level of revenue opportunities in coming periods. At the reporting date, 3,690 units were under operations, generating AUD 10.6 million in recurring revenue. This represented 32% of total revenue for this region and increased 41% on the PCP and 14% on the second half of 2022, as active units are now fully operational. The yield achieved on these units improved slightly to $12 per day, which assisted to offset the net overall reduction in units under operation as regulatory changes in Mexico were introduced. The segment profit was AUD 10.4 million, comparable to the preceding two half year periods. Our domestic performance in Australia, on page 21, displayed positive momentum. We sold 792 machines in the current period, which was an increase of 34% on the 591 units in the pandemic impacted PCP. This result was primarily achieved from the key market in New South Wales, which contributed to 54% of the region's revenue in the current period, compared to 39% in PCP. The successful performance of the recently released title, Treasure Spirits, was a pleasing result. I would note that despite a strong ASP being maintained, competitive market conditions continue with overall gross and segment profits being impacted by inflationary pressures and the weakness of the Australian dollar against the U.S. dollar, which adversely impacted cost of production in the period. Within the rest of the world segment, growth in online revenue supported an improved result in the current period. Segment profit rose by 43% to AUD 5.7 million compared to PCP. Online revenue was AUD 6.4 million and contributed 79% of the segment's total revenue. These revenues have grown from AUD 3.7 million in the PCP. The partnership with GAN Limited via their extensive casino operator channels and the partnering with online casino aggregators, Pariplay and BetConstruct throughout Latin America continues to progress as planned. We now have over 120 games approved on our Remote Gaming Server. I will now ask Lynn to outline the financials. Thank you, Harald. As Harald has pointed out, it has been a key priority to ensure we maintain a strong balance sheet to protect the company through these volatile times. Allow liquidity to pursue planned development initiatives. On page 15, you'll see we've closed the current period with a net cash position of AUD 36.5 million, with undrawn facilities in place for $ 32 million. The deterioration in the cash flow during the current period was a result of investment in working capital to mitigate risk in fulfilling expected customer product requirements. The receivables closing balance of AUD 115.5 million, a slight increase of 2.5% on the AUD 112.7 million at 30th June 2022, despite good cash collections in the current period. Inventory closed at AUD 90.1 million, an increase on the AUD 68.3 million at 30th June 2020, as Harald noted, to ensure no supply chain disruptions impacted customer demand in the first half of calendar year 2023. The company has AUD 320 million of net assets with no facility draw down following repayments of borrowings within financial year 2022. Turning to slide 16. Operating cash flow decreased to -AUD 8 million from +AUD 31 million in the PCP due to increased working capital investment to mitigate global supply chain shortages and overall rising costs due to inflation. Despite these challenges, the group maintained a strong cash balance of AUD 37.1 million at reporting date, compared to AUD 46.3 million in the PCP. Operating costs during the current period rose by 18% compared to PCP. The increase was attributable to an increase in salaries and wages, increase in overheads resulting from operations resuming to pre-pandemic levels and inflationary cost pressures. Reduction in depreciation costs on assets that were previously impaired for the Latin America and rest of the world regions offset a portion of the increase in operating costs. With our cash-strong capital base, we are all well-financed to go forward and execute on strategies established. Thank you, and I will now hand you back to Harald for some concluding remarks. Thank you. AGT enters the calendar year 2023 with good momentum and expect to sustain profitability. Trading conditions in both domestic and international markets have shown their resilience despite economic challenges in global market. AGT's North America business continues to make progress in both Class II and Class III markets. Opportunities are being pursued for existing and new AGR markets. Despite more volatile market conditions in Latin America, the group expects to continue its trajectory of growth and profitability in this region. Domestic markets are expected to benefit from new product releases and improved game performance in 2023. With a strong balance sheet and refreshed commitment to product innovation, AGT is well-placed to deliver improved performance. As I said on the beginning, our results are much improved on the PCP, driven by recovery in many of our major international markets. We can also look forward to further recovery, especially in Australia and Latin America, where we will continue to leverage our key strengths of AGT's trusted brand, our highly capable staff, the company's enduring commitment to developing superior game technologies, and our customer relationships across our major markets, particularly in North America. As I have previously commented, for us to ensure continued growth and to sustain our performance, we needed to improve the outputs of our R&D investments. We need to lift the competitiveness of our product. We need to offer more value to customers. An established product roadmap and strategies to upgrade game performance is now in place to achieve sustainable long-term results across global markets. The ability to quickly deliver new products to markets that can provide better results for our customers is critical to our long-term success. We have expanded our capabilities and talents within R&D in both the Sydney and Las Vegas studio. Two new R&D studios were established and are now operating in North America. These new studios are led by industry veterans with significant experience and will provide more creativity and diversity to our current product offerings. Quality initiatives are underway and have already started to improve game designs, mathematics and graphical arts to create a more diverse and targeted range of product offering to our customers. I look forward to updating you on this improvement as we progress. Before I close, I would like to finish by thanking all my colleagues at Ainsworth for their contributions to these results and their dedication to our customers. I'm incredibly proud of the way the team of AGT has performed through these volatile times, and I want to formally thank them all. Thank you for your time today, and now I will hand over to the operator to open up the lines for Q&A. Thank you. As a reminder, if you would like to ask a question, press star then the number one on your telephone keypad. Your first question comes from the line of David Fabris with Macquarie. Your line is now open. Good morning, Harald. Good morning, Lynn. Look, I've got a couple of questions. Just. With the investment in research and development, I guess that's a step up. I'm trying to understand when we'd expect to see a return on that investment. I guess, you know, are you expecting to see increased volumes in the near term, or is it something we should sort of monitor and look for over the medium term? So we have decided to open up new game studios in the U.S. because we want to improve our market share or increase our market share, especially in the low denomination area. We are expecting to show the first games out from this new competence centers at G2E 2023 in October. That means it will have an impact most probably on the first half of 2024. Got it. Okay. Then, I guess just around the fact you've moved from two studios to four, is this sort of the right scale for you now, or are you looking to add more studios, and would you look to move into other product verticals as well? We have currently four. There is an initiative of a fifth one, maybe, especially for Latin America, and we are currently considering also to increase our development effort in Australia by adding a new studio here. That means, I hope that by mid of 2023, we should have in total six studios. Okay. That makes sense. Just a final question. Just with the Mexican Tax Administration Service provision, I saw that increased in the December half. Can you just talk about why that increased and whether or when you could maybe see some clarity or timing on a resolution there? I will hand you over now to Mark because he's the specialist for this question. Yeah, thanks, Dave. Thanks, Harald. In relation to Mexico, you know, there's been very little communication or feedback from the Mexican authorities. They were away for the bulk of the January period. There has been a change in the organizational structure within the SAT in Mexico. It was more a reassessment as required under the applicable accounting standards to assess the expected probability and risk. We decided to take an additional provision as they have commenced reviewing subsequent periods beyond the 15 and 16 year as well, which encompasses the overall provision in total for the affected years. Got it. Have you got any indication of when this might be settled? Is this something you'd expect to be settled in 2023? Well, we'd hope so. You know, we're engaging and actively engaging. There is a mediation process now in place within the SAT, and we've actively engaged through that mediation process. We're continually in contact with them. We're standing by our, you know, defense in relation to the interdependency of the software and the hardware, and we are yet to receive any feedback from SAT in relation to submissions, which include detailed submissions of that interdependency argument. Yeah. Got it. Okay. That's helpful. Thanks for answering the questions. Thanks. Your next question comes from the line of Steve Emerson with Emerson Investment Group. Your line is now open. Thank you for picking up my line. Congrats on a great year. Thank you. Harald, greatly appreciate your thoughts for listing in the U.S., considering over half your revenues and employees are in the U.S. There is no final decision of a listing in the U.S. This is something that we are currently investigating. What is the best for the future of Ainsworth, and listing in the U.S. is an option. Okay. In view of your major R&D investments, perhaps you can mention what the R&D budget is for this year versus last, and perhaps, if you can give us some thought as to guidance. Are we looking at a down year possibly in EBITDA or are you expecting revenues to grow sufficient to offset the increase in expenses? Steve, firstly, let me address the guidance issue. We're expecting there to be a step-up in R&D activity, but we expect it to maintain around the 15%-16% of revenue. In absolute dollar terms, there will be an increase in R&D. We are expecting revenue improvements across all markets in the calendar year. The cost base is under pressure. We have not, at this stage, provided guidance, and we expect to provide that guidance at the scheduled AGM in May, late May. Okay, thank you. Your next question comes from the line of Ron Shamgar with Canaccord Genuity[crosstalk]. Your line is now open. Yeah. Hi, guys. Good results. Can you hear me? Yeah. Yeah, we can hear you. Yeah, just a couple of questions. The first one, you've got that Las Vegas property, I think it's valued at $50 million on the balance sheet. Is there any intention to potentially sell and lease back, that? I give you the same answer, like, for the listing in the U.S. Of course, we are investigating everything. There's no decision made yet. Okay. Then the other question is, I mean, you mentioned you're investigating potential listing in the U.S. Considering, Novomatic owns so much of Ainsworth, you know, what's the point of going, doing a dual listing in the U.S. when they're such a large shareholder? Really the future is really eventually Ainsworth becoming part of their group. No? Yeah, this is exactly what I mentioned before. That's the reason why I was talking about investigating this issue, because this is, of course, depending on Novomatic's strategy, and this is an ongoing process. We are in discussion with them, and as soon as we have a common understanding of our strategy, we will announce the outcome. I see. Do you expect some sort of an outcome by the May AGM? No, that's too early. Yep. Yep. Okay. You mentioned that you, considering a dividend potentially in the future, you know, you've got a strong balance sheet. What sort of cash on the balance sheet do you require in order to resume paying dividends? Well, I don't think it's a position in relation to the cash held. I think it's more a position in relation to, you know, commitment in relation to investment in R&D. We still have the Mexican position that we need to resolve. I think it's the supply chain disruptions and risks that we have to encounter to ensure no disruption to the customer demand in the short term. Yep. Okay. All right. Thank you, guys. Thank you. Your next question comes from the line of Jim Devlin with Henley. Your line is now open. Yes. Hi. Good morning, guys. If you turn to the slide for the company's net assets at period end, I think the number somewhere close to AUD 320 million, if I'm right. Yeah, net asset, AUD 320.2 million. Is it page 15? Page 15. Yeah. The company's market capitalization as of last night closed at AUD 337 million. Effectively, the global markets or the ASX market is saying that the company's total global business is worth about AUD 17 million net of assets. You know, if I'm correct, right, I mean, the outstanding debt balances at period end were basically zero. Yeah. Yes. Right. Then we have an untapped, I would assume, 'cause we paid back the credit line, it looks like, at period end. How much is available on the credit line? $32 million. You can't possibly make acquisitions cheaper than you can buy back your own stock. There's M&A risk, right? If you were looking at buying another person's company, and there's a risk of, you know, problems with other assets. In other words, nobody knows the business better than the people operating the business. My question is, in lieu of a dividend, have you guys looked at a large stock repurchase of your own shares in the open market? I think, Jim, we're looking at all potential capital management initiatives, which Harald outlined. We're looking at the property in the U.S. We're looking at the, you know, potential buyback of shares. We're looking at listing, delisting. We're looking at all those, and they're under consideration, and they're will be evaluated by the board as time goes on. Okay. Appreciate the call. The only other question I would ask is on the HHR front, which seems to be driving a pretty good amount of your North American business. I guess we've got, like, maybe five or six states now that have chosen to legalize historical horse racing. How does the, I guess, legal calendar or? New opportunities look for additional states to get involved in historical horse racing and perhaps this year or the near horizon. I think the bulk of the jurisdictions within North America have already legalized. We've got, you know, the strong performance in New Hampshire, Louisiana. Texas has resolved their litigation and the legislation in relation to HHR. Alabama is similar. It's an expanding market opportunity, but at this juncture, the bulk of the jurisdictions are online. Okay. All right, guys. Thank you very much. Thank you. Your next question comes from the line of David Kingston with K Capital. Your line is now open. Yeah, thanks, guys. look, it's undoubtedly a great company. you know, the revenue is strong. It's an interesting sector. the EBITDA is strong. However, as I said at the AGM, look, I've got serious concerns that the board is not looking after shareholder value properly. it certainly strikes me that the company is dominated by Novomatic, and, you know, understand they own around about half, but, you know, in my view, they should either privatize it or sell it. It is concerning that everyone today has raised issues like dividend or property sale or buyback, which are all very legitimate issues. Also the American guy who noted the sales versus the market cap and noted that, you know, acquisitions would be value destructive. All we get from the board is, we're considering it. These issues have been raised for a while, gentlemen, and I raised them very firmly at the AGM. All we get is, "We're considering it." The answer before was, would there be an answer by May? "Oh, no, far too early." I'm just concerned that it's a great company. Operationally, it's doing well. It's a hot sector. If you put it up for sale, it would probably sell around about the price that Len Ainsworth got for it, a number of years ago, AUD 2.75 a share. All we're getting is, a subsidiary of a large multinational who probably doesn't care about the share price or shareholder value. The Australian shareholders, who are the main shareholders, are suffering accordingly. I say again what I said at the AGM, that I think Novomatic and the board really should look after shareholder value properly. If they're not prepared to do that, Novomatic should step up and either buy it at a proper price or sell it, because there would be plenty of buyers for the company at probably double the current share price. I'd appreciate your comment, but please, you know, there needs to be a bit of urgency. Shareholders are suffering because in my view, the company is not being run properly for shareholder value. Thank you. Okay, what do you understand by shareholder value? Paying dividends? That's not really shareholder value. Shareholder value on a long-term run is to increase the profitability of the company and to increase the share price, and this is what we are concentrated on. Currently. Sharehold- Currently, we are investing in R&D development, which gives us a much higher opportunity for success in the future, and that is shareholder value, independent of Novomatic strategy. Yeah. Shareholder value is getting it back to the price Len Ainsworth sold for quite a few years ago. If you paid a dividend, in my view, the stock would jump 20% overnight. Shareholders are frustrated that there's almost an arrogance from the board and from Novomatic that we'll do it our way. Yes, you are listening to the very strong feedback from shareholders today that why do you have such a lazy balance sheet, an AUD 50 million property, a lot of cash in the bank, strong cash flow, and yet it is absolutely staggering that the board is not prepared to pay a dividend given its financial strength. You're spending a lot of money on R&D. That's, that's a decision. That's okay. Even with that, the company should be paying a dividend at least. Once again, currently, we have decided not to pay a dividend. There's a good reason for this. Let's see the profitability in 2023. Once again, we are concentrating now on R&D expenses. It costs a lot of money. We have to somehow develop or change this money into sold gaming machines. That's our priority. The shareholder value is maybe higher than just paying dividends. Well, all I'd say, Harald, is by not doing shareholder value-friendly things such as a buyback or pay a dividend or sell the property, you are depriving shareholders of a fair value for their shares in Ainsworth. There's no doubt at all that if this company was run from a shareholder value point of view, its stock price would be dramatically higher than the current price. I don't believe it, but anyway. Anyway, thank you. Yeah. I'll pay on my point. Thank you. Thank you. There are no further questions at this time. Harald Neumann, I turn the call back over to you for closing remarks. Once again, thank you for the questions. Maybe we have not satisfied everybody by our given answer. Once again, I think my focus was simply increase the probability of performing games, and increasing probability means having more resources in this area. I'm really convinced that we will be successful. We have already our first. We have recently released a new game in Australia, New South Wales, with quite good results, similar in the U.S. I expecting further growth for the company. Thank you for your contribution.