Bally's Corporation · NYSE:BALY
Bally's — Q4 2022 Earnings Presentation
28 slides from Bally's's earnings presentation, Feb 23, 2023
Slide 1: Q4 2022 Investor Presentation
4022 INVESTOR PRESENTATION
Slide 2: How Are We Different? Global Omni-Channel Power!
HOW ARE WE GLOBAL OMNI- DIFFERENT? CHANNEL POWER! © 2023 Bally's Corporation. All rights reserved. 2
Slide 3: Investment highlights: casinos, international iCasino, North America interactive
1 • #3 regional casino operator in US with geographically diverse portfolio of 17 casinos across 11 states • Growth capex in 2022 tapers off into 2023, refreshed properties lead to lower maintenance in the future • Low annual maintenance capex due to slot ownership dynamics in Rhode Island and Delaw
Slide 4: 2022 and Beyond
2013 2014 - 2020 2021 2022 and Beyond Single Market Operator Regional Expansion of Land Based Portfolio Omni-Channel Growth Omni-Channel Gaming Leader Expanded to 16 regional casinos(1) 9 interactive acquisitions and Gaming leader with international presence Single Rhode Island asset and 15 states t
Slide 5: States with Casino and OSB access
States with Casino States with OSB access © 2023 Bally's Corporation. All rights reserved. 5
Slide 6: Bridge to 2026+ Casinos & Resorts EBITDA is Highly Visible Today
Property / Expected Comments Project Opening Rhode Island FY23 ~$10M incremental EBITDAR from improved IGT economics Bally's Chicago August 2023 Temp facility +$25M (Temp Facility) to EBITDAR Bridge to 2026+ Casinos & Resorts Bally’s 1H23 Land based redevelopment – EBITDA is Highly Visible Today Kan
Slide 7: Bringing Together Physical and Online Experiences
BRINGING TOGETHER PHYSICAL AND ONLINE EXPERIENCES Technology isn’t everything. Need flagship properties. Establish brand presence. State of the art retail opportunity. Initial facility opens SUMMER 2023 Permanent facility opens SUMMER 2026 Bally’s flagship casino in third largest city in US ~55M vis
Slide 8: Global player with Las Vegas presence
Global player with Las Vegas presence Closed acquisition September 26, 2022 Evaluating development opportunities Irreplaceable • Prominently located on the Las Vegas Strip at E. Tropicana Avenue, the most densely developed Las Vegas hotel corner in the world with ~25,000 hotel rooms Strip Location w
Slide 9: Y/Y Growth: 2022 vs 2021
Y/Y Growth: 2022 vs 2021 11.4% 9.9% 9.8% 9.1% 7.5% 7.6% 5.9% 5.8% 5.1% 5.3% 4.7% 3.8% 4.0% 3.6% Theo Growth % 1.4% Trip Growth Theo Per Trip Growth 21-34 35-44 45-54 55-64 65+ © 2023 Bally's Corporation. All rights reserved. 9
Slide 10: Additional Capital on New Slot Product in 2023
We are spending Additional Capital on New Slot product in 2023 with the expectation that the new equipment should: The latest technology is expected Offer a more competitive to easily interface with our future 01 gaming floor to help drive incremental revenue and trip 03 initiatives, including cashl
Slide 11: Bally Rewards App and Cashless Deployment Phases
Phase 1 1 Bally Rewards App (Concierge App) 2 Phase 2 Cashless Deployment on Test Banks Phase 3 3 Cashless Deployment on Test Tables 4 Phase 4 Expand to All Banks and Tables Phase 5 5 Point of Sale / Retail Integration 6 Phase 6 Marker / Credit © 2023 Bally's Corporation. All rights reserved. 11
Slide 12: The Bally's Difference
THE BALLY’S DIFFERENCE
Slide 13: Single Wallet to Power Cashless Gaming Experience
Single Wallet to Power Cashless Gaming Experience Integrated Play Across Physical and Online Betting E-bonusing Unified Rewards and Loyalty Points Account Management © 2023 Bally's Corporation. All rights reserved. 13
Slide 14: Connecting Sports Media and Gaming in One App
Connecting Sports Media and Gaming in One App. © 2023 Bally's Corporation. All rights reserved. 14
Slide 15: Developing Frictionless, Omnichannel Customer Experiences
Bally LIVE & Bally Play Developing Integral Components Bally Bet Gamification & of Frictionless, Omnichannel Bally Casino Social Customer Experiences: 1 Optimized single registration & KYC 2 One login across Bally 3 Gamified Omnichannel Rewards 4 Payment modernization: • Cashless wagering optimized
Slide 16: Case Study – Deposits Stepped Up, Revenues to Follow!
Case Study – Deposits Stepped Up, Revenues to Follow! • Acquired Bally’s Atlantic City 2022 – Jan 2023 Bally's New Jersey B2C(1) in November 2020 for $25M and commitment to invest $16,000 $100M $14,000 • Received iCasino license for New Jersey $12,000 • Launched Bally’s iCasino in $10,000 December 2
Slide 17: Live in New Jersey with a 3%+ market share
Bally's Interactive will provide a frictionless, robust, and competitive interactive Casino & Sportsbook 1 2 3 4 Be a Customer Centric Be iGaming Utilize and Optimize Win in All Select Organization First Our Audience Funnel Markets We Enter We are live in New Jersey with a 3%+ market share (growing
Slide 18: Sinclair and Diamond regional sports networks
❖ In 2020, Bally's acquired naming rights over Diamond's regional sports networks. Sinclair Broadcast Group separately agreed to promote the Bally's brand over Sinclair networks. ❖ However, the Bally's brand and naming rights are owned by Bally's alone. Bally's has no liability related to Diamond's
Slide 19: Stemming North America Losses
Stemming North America Losses Cost Save Assumptions: Through our announced restructuring plan of the Interactive business in January, we Interactive Cost Savings of $50M are taking a deep dive into our approach • Headcount reductions resulting in savings of $35M net to North America to ensure that o
Slide 20: Bally's International
BALLY’S INTERNATIONAL
Slide 21: Gamesys player-centric approach
(millions) ’2010A – 2022A - CAGR: +22% Gamesys has developed a player-centric approach with a singular focus on enhancing the player journey across its $947 product lifecycle. $89 FY 2010A FY 2022A Our players generate 250 million data points a day Drives Feeding higher player self-learning retentio
Slide 22: Player prediction and recommendation engines
Recommended Games Engine Recommends a set of player specific Incentive Generator 01 games Predicts the optimal reward type (cash, bonus, free spins etc.) and value that a 09 02 player should receive on a campaign basis Churn Predictor Predicts whether a player will churn Landing Page Optimizer Tests
Slide 23: Bally's Financial Overview
BALLY’S FINANCIAL OVERVIEW
Slide 24: 2023 Guidance
CASINOS & RESORTS +$460M EBITDAR +1.4BN+ revenues • Full year FX rates: GBPUSD 1.18-1.24 and EURUSD 1.04-1.08 INTERNATIONAL INTERACTIVE 30%+ EBITDA Margins • Mid single digit wage inflation NORTH AMERICA INTERACTIVE ~$40M-$50M Adjusted EBITDA loss • Interactive cost savings of $50M • Headcount reduc
Slide 25: Total Net Debt and Fully Diluted Shares Outstanding
Cash and cash equivalents(1) ~$439 Common Shares Outstanding as of December 31, 2022 46,670,057 $620M Revolving Credit Facility, 2026(1) $0 Sinclair Warrants and Options(1) 12.830,730 Senior Secured Term Loan Facility, 2028(1) $1,926 Transaction Warrants and Contingent Shares(2) 745,441 Total Secure
Slide 26: Property EBITDAR and Rent Coverage
Property Remaining WholeCo EBITDAR Lincoln Vicksburg Kansas City Shreveport Atlantic City WholeCo EBITDAR ~$200 ~$200 Rent Coverage 2.0x 2.0x Implied Rent $100 $100 Multiple Range 12.0x 14.0x Estimate Real Estate Value Range $1,200 $1,400 © 2023 Bally's Corporation. All rights reserved. 26
Slide 27: Quarterly revenues by region
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 UK - £ 90,894 106,516 109,298 116,538 118,512 118,760 118,825 110,358 108,196 112,040 118,955 124,067 Asia - € 50,246 62,749 66,212 65,817 71,700 75,653 76,824 75,887 83,334 75,536 74,255 71,895 Spain - € 9,716 10,291 9,973 11,295 8,663 9,7
Slide 28: Environmental, Social and Governance
ENVIRONMENTAL SOCIAL CORPORATE GOVERNANCE CARBON FOOTPRINT REDUCTION RESPONSIBLE GAMING Bally’s reduced carbon footprint by Bally’s implements responsible ESG FOCUS an average of 2,327 tons per year gaming employee trainings and Bally’s created an ESG Steering at the Lincoln property in Rhode respon