Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (August 2022)
22 slides from Inspired Entertainment's investor presentation, Aug 23, 2022
Slide 1: Investor Presentation August 2022
INVESTOR PRESENTATION August 2022
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. hese forward-looking statements include, but are not limited to, statements regarding our business
Slide 3: Inspired Entertainment is a leading B2B provider of gaming content, systems and solutions
Inspired Entertainment, Inc. is a leading BZB 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. cf ®. Experienced developer of differentiated CONTENT-DRIVEN and
Slide 4: Proven and Experienced Management Team
Proven and Experienced Management Team <4 Lorne Weil Brooks Pierce President and Chief Executive Chairman Operating Officer Position Chairman of the Board & CEO of Scientific Games Aristocrat, Scientific Prior Experience Games, Sportech Daniel Silvers Stewart Baker Carys Damon Executive Vice Preside
Slide 5: Investment Highlights
Investment Highlights Ga off 4 INSPIRED 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 Margin expansion and d
Slide 6: Content Driven Gaming Systems: Significant Momentum in North America
<4, INSPIRED VIRTUAL SPORTS INTERACTIVE GAMING LEISURE 4, INSPIRED Content Driven Gaming Systems High-growth, capital efficient Strong recovery following COVID-19 retail reopening Fira va ay » Ht Us sad VIRTUAL SPORTS INTERACTIVE GAMING LEISURE Regulated Gaming Cross-Selling Globally Shifting Share
Slide 7: Long-Term Growth Drivers
Long-Term Growth Drivers = Continue to grow capital efficient Interactive and Virtual Sports businesses = Pennsylvania and Ontario iGaming launched in Q2 2022 Online Virtuals in Ontario in Q2 2022 = Retail & Online Virtuals with DC Lottery in Q2 2022 = Expand North American VLT distribution = Awarde
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 regulated gaming, betting, lottery, social and leisure operators across land-based and mobile channels worldwide => BETTING SHOPS GAMING { CONTENT-LED APPROACH INTERACTIVE ON
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 ; 7 . SUGCET ‘ FANDUEL iGAMING a Une ES iforium novibet 2 Show Sewn ; : ® oe cco OS & aoe and BBG || MORI! eerby corns e oo iLOT
Slide 10: Virtual Sports
VIRTUAL SPORTS A pioneer and leader in Ultra-HD games that create an always-on sports —— feparence breadth a . Cross ‘Over produ sports betting and casino gaming = High margin with revenue primarily generated through rev share contracts = Popular in betting shops in the UK, Italy and Greece and onli
Slide 11: Interactive
INTERACTIVE Online gaming operators use our top-performing game titles online and on mobile devices worldwide High-growth, 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 increase
Slide 12: Gaming
GAMING = Gaming growth shifting from large casinos to many distributed venues = — 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 = ~32,000 machines live with top games in key juris
Slide 13: Leisure: server based gaming terminals and pay to play entertainment
e 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 e Ability to leverage top performing content across platforms e Potential for digital transition to drive improved economics — Analog ma
Slide 14: Investment Highlights
Investment Highlights one A LEADING OMNI-CHANNEL B2B GAMING PROVIDER WITH RECURRING REVENUE THROUGH LONG-TERM CONTRACTS ith sigr = Anticipated to launch iGaming, Virtual Sports ani @ STRONG RESURGENCE OF RETAIL BUSINESSES FOLLOWING COVID-19 CLOSURES iLottery in several additional mark near term (022
Slide 15: Market Capitalization
Market Capitalization (unaudited) Actual US$ in millions, except per share data 6/30/22 Cash $31.8 Senior Secured Notes'” 285.4 Accrued Interest, Finance Lease Liabilities and Pension Liability” 4.3 Total Debt $289.7 Net Debt $257.9 Diluted Shares Outstanding” (in millions) 29.263 Share Price (As of
Slide 16: Appendix
INSPIRED . Appendix
Slide 17: Summary of Q2 2022 Segment Performance
Summary of Q2 2022 Segment Performance Three Months Ended June 3¢ 022 i Adjusted EBITDA Revenue Adjusted EBITDA’ ‘3 Margin’ (in $ millions) Q2 2022 Q2 2021 % Q2 2022 Q2 2021 % Q22022_ _Q22021 Segments Gaming $25.4 $16.2 7% . 3.5 168% 37% 22% Virtual Sports 14.0 8.2 71% 12.0 64 88% 86% 78% Interactiv
Slide 18: Summary of FY 2021 Segment Performance
Summary of FY 2021 Segment Performance ‘welve Months Ended December 31, 2021 Revenue Adjusted EBITDA’ Adjusted EBITDA Margin’ (in $ millions) FY 2021 FY 2020 % FY 2021 FY 2020 % FY 2021 FY 2020 Segments Gaming (ex VAT)” $78.3 $68.3 15% $23.1 $17.1 35% 29% 25% Virtual Sports. 36.0 32.4 11% 28.4 25.1
Slide 19: Non-GAAP Reconciliation: Q2 2022 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: Q2 2022 Adjusted EBITDA by Segment Virtual Gaming Sports Interactive, _ Leisure Corporate Total (In millions) Net gain (loss) $ 48 $ lll $ DS cal 8 (4.7) $ 1S Items Relating to Discontinued Activities Pension charges — — —_— = 0.3 0.3 Items outside the normal course of busin
Slide 20: Non-GAAP Reconciliation: Q2 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: Q2 2021 Adjusted EBITDA by Segment Virtual Gaming, Sports Interactive, _ Leisure Corporate Total (In millions) Net gain (loss) $ @)S 428 268 (44) 8 (43.5)$ (43.8) Items Relating to Discontinued Activities Pension charges — _— — — 02 0.2 Items outside the normal course of bus
Slide 21: 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) $ PGS 92 $8 (1.0) $ (69.5)$ (36.7) Items Relating to Discontinued Activities Pension charges = = = = 08 0.8 I
Slide 22: Any questions:
Any questions: e ° g IR@inseinc.com 646-565-6938 (INSPIRED ESSENTIAL ENTERTAINMENT 4 INSPIRED
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