Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025. · NYSE:BRSL
Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025 — International Game Technology — Q1 2024 Earnings Presentation
38 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's earnings presentation, May 14, 2024
Slide 1: Filed pursuant to Rule 425
Filed by International Game Technology PLC (SEC File No. 001-36906) pursuant to Rule 425 under the Securities Act of 1933, as amended, and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934, as amended Subject Company: International Game Technology PLC (SEC File No. 001-3
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 Cautionary Statement Regarding Forward-Looking Statements This presentation may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the “Company”) a
Slide 3: Strategy Update
STRATEGY UPDATE iL. a ~ (UAYGRANDE!| <4 IOCCASIONE lea i
Slide 4: Q1'24 Results Exceed Expectations
Q1’24 Results Exceed Expectations Better-than-expected revenue of $1.07B primarily from strong Global Lottery and iGaming performance 24% operating income margin, ~400 bps higher than expected Global Lottery SSS outperformance, inclusive of multi-state jackpot activity Cadence of Separation & divest
Slide 5: Global Lottery Growth Driven by Game Innovation and Hardware/Software Sales
Mid-single-digit revenue growth drives 6th consecutive quarter of Y/Y margin expansion Global SSS in line with PY 4.4% increase in Italy driven by game innovation in instants and draw games North America & Rest of World down 1.5%, primarily on instant game launch timing Global iLottery sales up 20+%
Slide 6: Consistent Global Lottery Growth Fueled by Compelling Product Strategies
Consistent Global Lottery Growth Fueled by Compelling Product Strategies Italy North America & ROW New Games Increased Play Frequency Multichannel Focus Q4’23: Launch Q3’23: 4th Draw LaunchQ2’23: 2nd Draw Launch iLottery Retail Q3’23: Georgia Quick Win Launch
Slide 7: Continued Momentum in Gaming & Digital
*Per April 2024 Eilers & Krejcik Gaming research; award presented at 2024 EKG Slots Awards Show Continued Momentum in Gaming & Digital 7 Y/Y operating margin expands for 12th consecutive quarter Global installed base grows to 54,000+ units U.S. & Canada premium units increase for 7th consecutive qua
Slide 8: Upcoming Releases and Game Success Stories
Upcoming Releases Focused R&D Investment, Process Improvements Driving Significant Gaming & Digital Progress • 4 of top 25 New Non-WAP Premium Games • 11 of top 25 Top Indexing WAP Games, including #1 and #3 spots • Mystery of the Lamp & Magic Treasures in top 10 Indexing Premium Games in EMEA Premi
Slide 9: Strong Q1'24 Results Drive Conviction in Upgraded FY'24 Outlook
Strong Q1’24 Results Drive Conviction in Achieving Upgraded FY’24 Outlook 9 Continued progress on separation and merger transaction for Gaming & Digital Delivered record operating income, excluding Separation & divestiture costs Expect broad- based KPI momentum across segments in FY’24
Slide 10: 10
10
Slide 11: Q1'24 Results Provide Solid Start to FY'24
Q1’24 Results Provide Solid Start to FY’24 Note: EUR/USD FX daily average 1.09 in Q1’24, 1.07 in Q1’23 (1)Operating income and Adjusted EBITDA include $18M of Separation and divestiture costs related to the planned separation of the Gaming & Digital segment *Non-GAAP measure; see disclaimer on page
Slide 12: Robust Q1'24 Global Lottery Revenue & Profit Growth
Robust Q1’24 Global Lottery Revenue & Profit Growth Revenue rises 6% on higher product sales and continued strength in Italy Product sales revenue up 90+% GameTouch 28 self-service terminal sales in Ontario Aurora central system software upgrades in Singapore and Germany Service revenue grows 3% Ita
Slide 13: Continued Improvement in Gaming & Digital Profit Margin
Continued Improvement in Gaming & Digital Profit Margin; Revenue Reflects Timing of Product Sales OI Margin 20% Operating Income $81M 13 Revenue $406M As expected, Q1’24 revenue down 7% Terminal service revenue up 2% Y/Y 6% increase in global installed base more than offsets lower yields due to mix
Slide 14: Q1'24 Cash Flows, Liquidity & Debt Maturities
*Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details CFO reflects negative impact from timing of income tax payments and other working capital items; FY’24 expectations reaffirmed Net debt leverage* of 2.9x matc
Slide 15: Upgrading FY'24 Outlook on Strong Q1'24 Results
Revenue Operating Income Margin Cash from Operations Capital Expenditures (including payments on license obligations) Upgrading FY’24 Outlook on Strong Q1’24 Results Previous FY’24 Outlook $4.3 - $4.4B ~21% ≥$1.0B ~$500M Key Outlook Assumptions Q2’24 Outlook Revenue Operating Income Margin ~$1.05B ~
Slide 16: SpinCo & RemainCo Considerations
& REMAINCO CONSIDERATIONS
Slide 17: Path to Close Transaction
Path to Close Transaction 17 Form 10/S-4 Registration Statement Regulatory Approvals Shareholder Votes SpinCo Separation Continued progress on workstreams; time to close aligned with other complex transactions in regulated industries Content / Counterparties Implications • Pro forma MergeCo combined
Slide 18: Deal Syndication/Financing Commitments
Deal Syndication/Financing Commitments 18 Financial Commitments Revolver (incremental to financial commitments) # of Banks Strong support for transaction from banks, including an upsized revolver Original Commitments Current Commitments $3.7B $3.7B $500M $750M 2 9
Slide 19: Separation & Divestiture Expenses
Separation & Divestiture Expenses (excluding tax leakage & cash conveyance) 19 ~$200M in Separation & divestiture expenses are aligned with other transactions in the same industry • Pre-closing: ~$130M (~$20M in Q1’24; ~$110M from Q2’24 – Q4’24) • Upon closing: ~$70M 65% of cost Technical Consultant
Slide 20: Expected Tax Treatment of Distribution
• The distribution is expected to be taxable for federal income tax purposes. Additional state tax may be imposed on the portion of the distribution that is treated as a dividend or capital gain. • Distribution is expected to be reported by IGT PLC as a taxable dividend. • The general tax consequenc
Slide 21: RemainCo Pro Forma Net Debt Leverage Reconciliation
Net Debt 5.1 Net Debt Leverage 2.9x AEBITDA 1.8 RemainCo Pro Forma Net Debt Leverage Reconciliation (1)See Slide 18, and Slide 39, “Reconciliations of Non-GAAP Measures – FY’23” of Exhibit No, 99.2 “Presentation ‘International Game Technology PLC 2023 4th Quarter and Full Year Results period ended D
Slide 22: COWERO
COWERO .etoco pa. CODD MERISSIMIT = it =*
Slide 23: Appendix
APPENDIX
Slide 24: Q1'24 Revenue & Profit Profile
41% (1)Segment-level profit charts exclude Corporate support expense and purchase price amortization 62% 38% Global Lottery Gaming & Digital 82% 18% Service Product Sales 62% 24% 14% U.S. & Canada Italy Rest of world 76% 24% Global Lottery Gaming & Digital 74% 26% Global Lottery Gaming & Digital 39%
Slide 25: U.S. and Italy Lottery Markets Resilient During Recessions
U.S. and Italy Lottery Markets Historically Demonstrate Resilience During Periods of Recession U.S. Lottery Industry Sales ($B) March 2001– Sep 2001 March 2008–June 2009 March 2020– June 2020 0 20 40 60 80 100 Instant Other Draw Keno Multi-state Games Recession IGT Italy Lottery Sales (€B) June 2001
Slide 26: U.S. Gaming GGR Reasonably Resilient in Prior Recession Periods
U.S. Gaming GGR Reasonably Resilient in Prior Recession Periods The U.S. represents ~70% of IGT’s Global Gaming segment revenue ~80% of U.S. revenue generated in regional markets, ~45% from Tribal customers Mar 2001–Sep 2001 March 2008–June 2009 March 2020–June 2020 0 10 20 30 40 50 60 70 U.S. Comme
Slide 27: Q1'24 Select Performance and KPI Data: Global Lottery
$ in millions except otherwise noted Q1'24 Select Performance and KPI Data GLOBAL LOTTERY Q1'24 Q1'23 Y/Y Change Constant Currency Change Q4'23 Sequential Change as Reported Revenue Service Operating and facilities management contracts 653 637 2% 2% 624 5% Upfront license fee amortization (47) (47)
Slide 28: Q1'24 Select Performance and KPI Data: Gaming & Digital
$ in millions except otherwise noted (1) Excluded from yield calculations due to treatment as sales-type leases Q1'24 Select Performance and KPI Data GAMING & DIGITAL Q1'24 Q1'23 Y/Y Change Constant Currency Change Q4'23 Sequential Change as Reported Revenue Service Terminal 131 129 2% 2% 127 4% iGa
Slide 29: Q1'24 Gaming & Digital KPI Data (Continued)
$ in millions except otherwise noted (1) Excludes Casino L/T lease units due to treatment as sales-type lease Q1'24 Select Performance and KPI Data GAMING & DIGITAL (Continued) Q1'24 Q1'23 Y/Y Change Q4'23 Yields (by geography)(1), in absolute $ US & Canada $41.17 $42.36 (3)% $41.28 Rest of world $7
Slide 30: Q1'24 Select Performance and KPI Data: Consolidated
Q1'24 Select Performance and KPI Data CONSOLIDATED Q1'24 Q1'23 Y/Y Change Constant Currency Change Q4'23 Sequential Change as Reported Revenue (by geography) US & Canada 660 666 (1)% (1)% 707 (7)% Italy 258 243 6% 6% 244 5% Rest of world 150 151 (1)% (1)% 178 (16)% Total revenue 1,067 1,060 1% 1% 1,
Slide 31: Q1'24 Summarized Income Statement
Q1'24 Summarized Income Statement For the three months ended March 31, 2024 2023 Y/Y Change Constant Currency Change Service revenue 872 846 3% 3% Product sales 195 215 (9)% (9)% Total revenue 1,067 1,060 1% 1% Total operating expenses 812 805 1% 1% Operating income 256 255 —% —% Interest expense, n
Slide 32: Summarized Cash Flow Statement
Summarized Cash Flow Statement For the three months ended March 31, 2024 2023 Net cash provided by operating activities 120 311 Capital expenditures (84) (94) Payments on license obligations (7) (1) Free cash flow 29 216 Debt proceeds/(repayments), net (81) (17) Shareholder dividends paid — (40) Min
Slide 33: Reconciliations of Non-GAAP Measures - Q1'24
For the three months ended March 31, 2024 Business Global Gaming & Segments Corporate Total Lottery Digital Total and Other IGT PLC Net income 128 Provision for income taxes 69 Interest expense, net 72 Foreign exchange gain, net (15) Other non-operating expense, net 1 Operating income (loss) 258 81
Slide 34: Reconciliations of Non-GAAP Measures - Q1'24 EPS
For the three months ended March 31, 2024 Pre-Tax Impact Tax Impact (1)(2) Net Impact Reported EPS attributable to IGT PLC - diluted 0.40 Adjustments: Foreign exchange gain, net (0.09) 0.02 (0.11) Currency conversion impacts of hyper-inflationary economies 0.01 0.00 0.01 Amortization - purchase acco
Slide 35: Reconciliations of Non-GAAP Measures - Q1'23
$ in millions (1) Includes amortization of upfront license fees For the three months ended March 31, 2023 Business Global Gaming & Segments Corporate Total Lottery Digital Total and Other IGT PLC Net income 67 Provision for income taxes 87 Interest expense, net 70 Foreign exchange loss, net 26 Other
Slide 36: Reconciliations of Non-GAAP Measures - Q1'23 EPS
For the three months ended March 31, 2023 Pre-Tax Impact Tax Impact (1)(2) Net Impact Reported EPS attributable to IGT PLC - diluted 0.11 Adjustments: Foreign exchange loss, net 0.12 (0.02) 0.14 Currency conversion impacts of hyper-inflationary economies 0.02 0.00 0.02 Amortization - purchase accoun
Slide 37: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the proposed transaction (the “Proposed Transaction”) between Everi Holdings Inc. (“Everi”), International Game Technology PLC (“IGT”), Ignite Rotate LLC (“Spinco”) and Ember Sub LLC (“Merger Sub”), Everi, IGT and Spinco will file releva
Slide 38: Forward-Looking Statements (continued)
Transaction — are forward-looking statements. These forward-looking statements involve substantial risks and uncertainties that could cause actual results, including the actual results of Everi, IGT, the Spinco Business, or the combined company, to differ materially from those expressed or implied b
International Game Technology — Q1 2024 Earnings Presentation on 6ix