Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (November 2022)
24 slides from Inspired Entertainment's investor presentation, Nov 29, 2022
Slide 1: Investor Presentation November 2022
~, INVESTOR PRESENTATION INSPIRED November 20220 0 i
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 busines
Slide 3: Inspired Entertainment: 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 CONTENT-DRIVEN and enter
Slide 4: Proven and Experienced Management Team
Proven and Experienced Management Team Brooks Pierce Lorne Weil President and Chief Executive Chairman Operating Officer Position Chairman of the Board & CEO of Scientific Games Aristocrat, Scientific Games, Sportech Prior Experience o@, INSEIRED! Daniel Silvers Stewart Baker Carys Damon Executive V
Slide 5: Investment Highlights
Investment Highlights me A leading omni-channel B2B gaming provider with recurring revenue through long-term contracts am) Growth potential in content-driven Interactive and Virtua =j Sports segments Ga) Strong resurgence of land-based channels following COVID-19 nl closures despite macro-economic p
Slide 6: Content Driven Gaming Systems
& v Content Driven Gaming Systems {NSPIRED — High-growth, capital efficient Strong recovery following VIRTUAL SPORTS COVID-19 retail reopening GAMING GAMING 1 Regulated Gaming Rapid Expansion of - : Globally Shifting Share Legalized Sports Betting - fice from Fewer Casinos to and Lottery : Many "Dis
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 = 720-unit Valor™ terminal award in Saskatchewan
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 Cross-Channel Approach Yy Works Across Product Portfolio = — Highly synergistic land-based and online/mobile operations CONTENT-LED APPROACH = Play
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 - Yes EX Orwouet forum © Olas 2, arid novibet py parioby iD , EsroxmAN} RELA‘: WwW RUSHED iLOTTERY Lottoland >k xinarea BAM Koeavassers |) iii cme : 2 EEN Harris cine I 4
Slide 10: Virtual Sports
VIRTUAL SPORTS A pioneer 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, footb
Slide 11: Interactive
INTERACTIVE 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 activ
Slide 12: Gaming
GAMING = — Gaming growth shifting from large casinos to many distributed venues = A leading 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 networks = ~32,000 machines = Top ga
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 Powers = — Potential for digital transition to drive improved e
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 BB contracts @ GROWTH POTENTIAL IN CONTENT-DRIVEN INTERACTIVE & V
Slide 15: Market Capitalization
Market Capitalization (unaudited) Actual (US$ in millions, except per share data) 9/30/22 Cash $37.4 Senior Secured Notes"? 262.5 Finance Lease Liabilities and Pension Liability 2.2 Total Debt $264.7 Net Debt $227.3 Diluted Shares Outstanding® (in millions) 27.520 Share Price (As of market close Nov
Slide 16: Appendix
>» Woy - k os v INSPIRED . Appendix
Slide 17: Summary of Q3 2022 Segment Performance
Summary of Q3 2022 Segment Performance Three Months Ended Curreaey, pretli Seteniher 30, Reported Movement Currency Variance 2022? Variance (In $ millions) 2022 2021 % s % Total Revenue Gaming $24.1 $27.6 (12%) $(4.2) 3% Virtual Sports 14.6 10.5 39% GS) 63% Interactive 57 6.1 (6%) (1.0) 10% Leisure
Slide 18: Non-GAAP Reconciliation: Q3 2022 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: Q3 2022 Adjusted EBITDA by Segment Virtual Gaming Sports Interactive Leisure Corporate Total (In millions) Net gain (loss) $ AS 3 ile 23 $ 65 8 (14.7) $ 10.2 Items Relating to Discontinued Activities Pension charges —_— _— —_— — 0.2 0.2 Items outside the normal course of bus
Slide 19: Non-GAAP Reconciliation: Q3 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: Q3 2021 Adjusted EBITDA by Segment Virtual Gaming —_ Sports Interactive _Leisure Corporate Total (In millions) Net gain (loss) $ 51 $ 716 §$ 2.3 $ 9.0 $ 1.0 $ 25.0 Items Relating to Discontinued Activities Pension charges = = = = OP 0.2 Items outside the normal course of bus
Slide 20: Non-GAAP Reconciliation: Q3 2022 Pro-Rated Segment
Non-GAAP Reconciliation: Q3 2022 Pro-Rated Segment Adjusted EBITDA Contribution Three Months Ended September 30, 2022 Virtual Corporate Gaming Sports _Interactive Leisure_ Functions _ Total (in millions) Total revenue $ 241 $ 146 $ 5.7 $30.5 $ — $_ 74.9 Segment % of Total Revenue 32.2% 19.5% 7.6% 40
Slide 21: Non-GAAP Reconciliation: Q3 2021 Pro-Rated Segment
Non-GAAP Reconciliation: Q3 2021 Pro-Rated Segment Adjusted EBITDA Contribution Three Months Ended September 30, 2021 Virtual Corporate Gaming Sports _Interactive Leisure_ Functions _ Total (in millions) Total revenue $ 27.6 $ 10.5 $ 6.1 $33.4 _$ — $77.6 Segment % of Total Revenue 35.5% 13.6% 7.8% 4
Slide 22: Summary of FY 2021 Segment Performance
Summary of FY 2021 Segment Performance Twelve Months Ended December 31, 2021 (In § millions) Segments Gaming (ex VAT)? Virtual Sports Interactive Leisure Corporate Total Company (ex VAT) Gaming VAT? Total Company (incl VAT) INSPIRED 4 Revenue FY 2021 FY 2020 $78.3 $68.3 36.0 32.4 22.8 13.3 68.7 43.6
Slide 23: Non-GAAP Reconciliation: FY 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY 2021 Adjusted EBITDA by Segment Twelve Months Ended December 31, 2021 Virtual Gaming Sports Interactive Leisure —_ Corporate Total (In millions) Net gain (loss) $ 18 $ 228 $ Caan (1.0) $ (9.5)$ (36.7) Items Relating to Discontinued Acti Pension charges = = = = 08 0.8 Item
Slide 24: Any questions:
Any questions: ~ > 646-565-6938 INSPIRED ESSENTIAL ENTERTAINMENT
Inspired Entertainment — Investor Presentation (November 2022) on 6ix