Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — FY2022 Earnings Presentation
25 slides from Inspired Entertainment's earnings presentation, Mar 13, 2023
Slide 1: Investor Presentation March 2023
~, INVESTOR PRESENTATION INSPIRED March2023 ge ENTIAL ENTERTAINMENT
Slide 2: Safe Harbor / Non-GAAP Financial Disclosures
Safe Harbor / Non-GAAP Financial Disclosures Forward-Looking Statements "This presoratnincluosfrwadooking statment wii the meaning of he rit ecurtis tigation Reform At of 16. Tes orvard-ootng ttements nud, but are nat ned, statements regarding ou busines state, lans and objects and our expected or c
Slide 3: Inspired Entertainment is a leading B2B provider of gaming content, systems and solutions
Inspired Entertainment, Inc. is a leading B2B provider of gaming content, systems and solutions across online/mobile and retail channels around the world which predominantly generates recurring revenues pursuant to long-term contracts. “®, Experienced developer of differentiated and entertaining iGa
Slide 4: Proven and Experienced Management Team
Proven and Experienced Management Team me Name Lorne Weil Brooks Pierce St rt Baker Carys Damon ti Presid hief Executive Executive Vice President and cutive Vic si Breve Executive Chairman resident and Chief Executive Executive Vice President and Officer Chief Financial Officer General Counsel é ‘ C
Slide 5: Investment Highlights
Investment Highlights xe A leading omni-channel B2B gaming provider with recurring revenue through long-term contracts Growth potential in content-driven Interactive and Virtual Sports segments Strong resurgence of land-based channels following COVID-19 closures despite macro-economic pressures Lor
Slide 6: Content Driven Gaming Systems
fH v Content Driven Gaming Systems {NSP{RED — High-growth, capital efficient Strong recovery following VIRTUAL SPORTS COVID-19 retail reopening INT GAMING Y VIRTUAL SPORTS N GAMING Regulated Gaming Rapid Expansion of 7 : Globally Shifting Share Legalized Sports Betting ,. from Fewer Casinos to and L
Slide 7: Long-Term Growth Drivers
Long-Term Growth Drivers = Growth in Virtual Sports and Interactive businesses = Recent launches - Pennsylvania iGaming, Ontario iGaming & Online Virtuals, DC Lottery Retail & Online Virtuals, Netherlands iGaming = Expand North American VLT distribution * — 820-unit Valor™ terminal award by Western
Slide 8: Content Creation is Core Competency
Content Creation is Core Competency Proven track record for creating engaging games for regulated gaming, betting, lottery, social and leisure operators ss-Channel Approach Works Across Product Portfolio GAMING LEISURE : er = — Highly synergistic land-based and online/mobile operations CONTENT-LED A
Slide 9: Significant Momentum in Online Channels
Significant Momentum in Online Channels Interactive and Virtual Sports continue to grow in new, emerging and core markets iGAMING Chee EX) oreo itorium tec a tee @ c= and RESORTS poripby 2, sag ' BETMGM. iLOTTERY Lotte ok kindrea eo eANDUEL Harratis, | Sexy : VIRTUAL Oo: SPORTS stem SAS cancun Downs
Slide 10: Virtual Sports
VIRTUAL SPORTS Apioneer and leader in Ultra-HD games that create an always-on sports wagering experience Continual stream of ultra-realistic player simulations and a wide breadth of bet types Cross-over product between sports betting and casino gaming Largest portfolio - baseball, basketball, footba
Slide 11: Interactive
BERS Online gaming operators use our top-performing game titles worldwide High-growth potential, high-margin recurring revenue business Gaining share from the launch of new content across the estate, growth in the customer base in new, emerging and core markets and increased promotional activity thr
Slide 12: Gaming
GAMING = — Gaming growth shifting from large casinos to many distributed venues = — Aleading supplier of server based gaming terminals to betting shops * Providing content on a distributed basis, allowing access to a wide footprint through internet and proprietary ne = ~35,000 machines = Top games i
Slide 13: Leisure
LEISURE = A leading supplier of server based gaming terminals and pay-to- play entertainment products to pubs, arcades, motorway service areas and holiday resorts in the UK =~ Ability to leverage top performing content across platforms = Potential for digital transition to drive improved economics I
Slide 14: Investment Highlights
Investment Highlights = 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 revenue business" through long-term B2B contracts €2)) GROWTH POTENTIAL IN CONTENT-DRIVEN INTERACTIV
Slide 15: Market Capitalization
Market Capitalization (unaudited) Actual (US$ in millions, except per share data) 12/31/22 Cash $25.0 Senior Secured Notes" 282.9 Finance Lease Liabilities and Pension Liability” 43 Total Debt $287.2 Net Debt $262.2 Diluted Shares Outstanding®’ (in millions) 27.945 Share Price (As of market close Ma
Slide 16: Appendix
» au . i Cal A INSPIRED ° Appendix
Slide 17: Summary of Q4 2022 Segment Performance
Summary of Q4 2022 Segment Performance ‘Three Months Ended Decomber : Curreney Functional ies ececared rea Reported Movement Curreney " Variance 2022? Variance (dn $ millions) 2022, 2021 % s % Total Revenue Gaming $38.0 $26.8 42% $68.2) ‘Virtual Sports 149 110 36% an Interactive 63 37 9% (09) Leisur
Slide 18: Summary of FY 2022 Segment Performance
Summary of FY 2022 Segment Performance Currency Fune ‘Twelve Months Ended Reported Movement Curreney December 31, Variance 20228 Variance (in $ millions) 2022 2021 % s % Total Revenue Gaming! su7 ssl4 37% s(12.8) 53% Virtual Sports 55.1 36.0 53% 6) 71% Interactive 2: 228 1% en 13% Leisure 68.7 39% a
Slide 19: Non-GAAP Reconciliation: Q4 2022 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: Q4 2022 Adjusted EBITDA by Segment ‘Three Months Ended December 31, 2022 ‘Virtual Gaming _Sports__Interactive_ _Leisure__Corporate___Total in miions) Net gain (loss) ee ee Tey ETS) os $ (s.s)s a1 Items Relating to Discontinued Activities Pension charges - = = - on on ‘tems o
Slide 20: Non-GAAP Reconciliation: Q4 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: Q4 2021 Adjusted EBITDA by Segment ‘Three Months Ended December 31, 2021 Virtual Gaming _Sports__Interactive_ _ Leisure _ Corporate i (in millions) Net gain (1oss) S80 Ss S Iams! 21 $ 5.3)8 a2) Items Relating to Discontinued Activities Pension charges = = = = 02 02 Items out
Slide 21: Non-GAAP Reconciliation: FY 2022 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY 2022 Adjusted EBITDA by Segment Virtual Gaming _Sports Interactive Leisure Corporate _ Te {an mons) Net zn (loss) s mos O58 878 10S MNS 23 [Kents Relating to Discontinued Activities Pension charges = = = = 07 07 Items ouside the normal course of business: ‘Acquisition and
Slide 22: Non-GAAP Reconciliation: FY 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY 2021 Adjusted EBITDA by Segment Virtual Gaming _Sports Interactive _Lelenre Corporate _Te dn nitions) Net zn (loss) S188 MSS 928 AHS (5S G67 ems Relating fo Discontinued Activities Pension charges = = = = 08 os ems outside the normal course of business: ‘Acquistion and ia
Slide 23: Non-GAAP Reconciliation: Q4 2022 Pro-Rated Segment Adjusted EBITDA Contribution
Non-GAAP Reconciliation: Q4 2022 Pro-Rated Segment Adjusted EBITDA Contribution ‘Three Months Ended De 34, 2022 Virtual Corporate Gamin; Sports, Interactive, _Leisure_ Functions _ Total (in millions) Total revenue S 38.0 $149 S$ 63 _S_194 S$ = $_786 Segment % of Total Revenue 48.3% 19.0% 8.0% 24.7%
Slide 24: Non-GAAP Reconciliation: Q4 2021 Pro-Rated Segment Adjusted EBITDA Contribution
Non-GAAP Reconciliation: Q4 2021 Pro-Rated Segment Adjusted EBITDA Contribution ‘Three Months Ended December 31, 2021 Virtual Corporate Gaming Sports, Interactive _Leisure_ Functions _ Total (in millions) Total revenue s 268 $10 S 57 _$ 235 $ —S$ 67.0 Segment % of Total Revenue 40.0% 16.4% 8.696 35.
Slide 25: Any questions?
Any questions: ~ a 646-277-1285 INSPIRED ESSENTIAL ENTERTAINMENT
Inspired Entertainment — FY2022 Earnings Presentation on 6ix