Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (November 2021)
25 slides from Inspired Entertainment's investor presentation, Nov 15, 2021
Slide 1: Investor Presentation November 2021
~, INVESTOR PRESENTATION (INSPIRED November 2021 ESSENTIAL ENTERTAINMENT
Slide 2: Safe Harbor / Non-GAAP Financial Disclosures
Safe Harbor / Non-GAAP Financial Disclosures Forward-Looking Statements ‘This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding our busine
Slide 3: Inspired is a leading B2B provider of gaming content, systems and solutions
/nspired is a leading B2B provider of gaming content, systems and solutions across online/mobile and retail channels around the world which predominantly generate recurring revenues pursuant to long-term contracts. Experienced developer of differentiated CONTENT-DRIVEN and entertaining iGaming conte
Slide 4: Proven and Experienced Management Team
Proven and Experienced Management Team <4 Lorne Weil Brooks Pierce Daniel Silvers Stewart Baker Carys Damon President and Chief Executive Vice President Executive Vice President Executive Vice President esi Exsolitiie Chatman Operating Officer and Chief Strategy Officer and Chief Financial Officer ©
Slide 5: Investment Highlights
Investment Highlights revenue through long-term contracts Growth potential in content-driven Interactive & Virtual oe A leading omni-channel B2B gaming provider with recurring Sports segments £__N fox) Strong resurgence of retail channels following COVID-19 on closures “atl Margin expansion and decl
Slide 6: Gaming, Virtual Sports, Interactive and Leisure Segments
« v Gaming Equipment. INSPIRED Content Driven. Strong recovery following VIRTUAL SPORTS High-growth, capital efficient COVID-19 retail reopening INTERACTIVE GAMING LEISURE nm ha), ie ical VIRTUAL SPORTS INTERACTIVE GAMING LEISURE Regulated Gaming Cross-Selling Globally Shifting Share Opportunities a
Slide 7: Long-Term Growth Drivers
Long-Term Growth Drivers Continue to grow capital efficient Interactive and Virtual Sports businesses Expand North American VLT distribution Deploy existing content into underpenetrated channels o Announced Loto-Quebec as first iLottery customer © Growth opportunities with U.S. and Canadian lotterie
Slide 8: Content Creation is Core Competency
Content Creation is Core Competency Proven track record for creating feature-rich games that deliver exciting experiences for land-based gaming operators, leisure operations, betting operators, lottery providers and online casino operators around the globe a> LEISURE PARKS e Cross-channel approach S
Slide 9: Significant Momentum in Online Channels
Significant Momentum in Online Channels Our content-driven Interactive and Virtual Sports businesses continue to grow their customer base in new, emerging and core markets Ye OFANDUEL itorium Z 988 sky [EeES (etnond ok xinarea svensa [@ st Harratig EI Ciliethe iGAMING and iLOTTERY a RES ORTS il BETM
Slide 10: Virtual Sports
VIRTUAL SPORTS e A pioneer and leader in Ultra-HD games that create an always-on sports wagering experience — Largest portfolio with basketball, NFLA football, MLBPAA baseball, as well as men’s and women's soccer — Continual stream of fast-paced action, ultra-realistic player simulations and a treme
Slide 11: Interactive
INTERACTIVE e Online gaming operators use our top-performing game titles online and on } mobile devices worldwide e High-growth, high-margin recurring revenue business e Gaining share from the launch of new content across the estate, growth in the customer base in new, emerging and core markets and
Slide 12: Gaming
GAMING e Gaming growth shifting from large casinos to many distributed venues e Inspired is a leader in server based gaming and provides content on a distributed basis, allowing access to a wide footprint through internet and proprietary networks e ~32,000 machines live with top games in key jurisdi
Slide 13: Leisure
LEISURE e A leading supplier of gaming terminals to pubs, arcades, service areas and ws i Ty holiday resorts in the UK PowerkStare |G y ss e Ability to leverage top performing content across platforms ‘i e Potential for digital transition to drive improved economics — Analog machines need to be phys
Slide 14: Market Capitalization
Market Capitalization (unaudited) Actual (US$ in millions, except per share data) 9/30/21 Cash $37.1 Senior Secured Notes” 316.9 Accrued Interest, Finance Lease Liabilities and Pension Liability 13.0 Total Debt $329.9 Net Debt $292.8 Diluted Shares Outstanding® (in millions) 24.393 Share Price (As o
Slide 15: Investment Highlights
Investment Highlights oi) A LEADING OMNI-CHANNEL B2B GAMING PROVIDER WITH RECURRING REVENUE THROUGH LONG-TERM CONTRACTS e Aleading presence in the UK, Greece and Italy with significant momentum in North America Combination of strong technology and top-performing content drive over 80% recurring reve
Slide 16: Appendix
? } ” : a See e* Cokes INSPIRED » Appendix
Slide 17: Segment Performance 3Q 2021
Segment Performance 3Q 2021 4 Three Months Ended September 30, 2021 Unaudited, (S in millions) Gaming pl Interactive Leisure Corporate Total SRO — Revenue ~ _ Service $ 197 $ 105 $ 61 $ 324 § — $ 67 Product 79 = — 10 = 89 Total revenue 276 70.5 1 334 = 776 Cost of sales, excluding depreciation and.
Slide 18: Segment Performance LTM Q3 2021
Segment Performance LTM Q3 2021 Unaudited, ($ in millions) Gaming virtual Interactive Leisure Corporate Total Sports Revenue: ~~ — Service $ 824 $ 337 $ 213 $ 508 $ — $ 188.2 Product 22.7 = a 27 = 25.4 Total revenue 705.1 337 213 33.5 = 213.6 Cost of sales, excluding depreciation and. amortization:
Slide 19: Segment Performance FY2020
Segment Performance FY2020 4 NS eUReD Audited, ($ in millions) Gaming el Interactive Leisure Corporate Total SOS Revenue: Service $ 922 $ 324 $ 133 $ 408 $ — $ 1787 Product 18.3 = = 28 = 21.1 Total revenue 710.5 324 13.3 436 = 799.8 Cost of sales, excluding depreciation and TO amortization Cost of s
Slide 20: Segment Performance FY2019
Segment Performance FY2019 Audited, ($ in millions) Leisure Corporate Total Revenue: Service 226 $ — $ 1345 Product 42 = 18.9 Total revenue 23.8 = 153.4 Cost of sales, excluding depreciation and amortization Cost of service (4.0) - (25.4) Cost of product (0.9) - (12.9) Selling, general and administr
Slide 21: Non-GAAP Reconciliation: 3Q 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: 3Q 2021 Adjusted EBITDA by Segment Virtual Gaming Sports Interactive Leisure Corporate Total (In millions) Net income (loss) $ 5.1 $ 716 $ 2.3 $ 9.0 $ 08 $ 24.9 Items Relating to Discontinued Activities Pension charges = = = = 02 02 Stock-based compensation expense 0.5 03 02
Slide 22: Non-GAAP Reconciliation: LTM 3Q 2021 Adjusted EBITDA by Segment
Unaudited, (S in millions) Interactive Gaming Sports Net gain (loss) Items Relating to Discontinued Activities Pension charges Items outside the normal course of business: Costs of group restructure Acquisition and integration related transaction expenses Refinancing of company debt Italian tax rela
Slide 23: Non-GAAP Reconciliation: FY2020 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY2020 Adjusted EBITDA by Segment Virtual Unaudited, ($ in millions) Gaming, _Sports_ Interactive, _Leisure Corporate __ Total Net gain (loss) $ 295 $ 210 $ 49 $ (158) $ (72.0)$ (82.4) Items Relating to Discontinued Activities Pension charges = = - - 06 06 Items outside the
Slide 24: Non-GAAP Reconciliation: FY2019 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY2019 Adjusted EBITDA by Segment Virtual Unaudited, ($ in millions) Gaming Sports Interactive Leisure Corporate Total Net gain (loss) $ O03 $ 216 $ G1) $ 23 $ (62.2)$ (41.1) Items Relating to Discontinued Activities Pension charges = = = = 06 0.6 Items outside the normal co
Slide 25: Inspired Essential Entertainment
~, INSPIRED ESSENTIAL ENTERTAINMENT 4 INSPIRED
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