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 — Investor Day (November 2021)
23 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's investor day presentation, Nov 16, 2021
Slide 1: Driving Compelling Value Creation Through Profitable Growth and Balanced Capital Allocation
Driving Compelling Value Creation Through Profitable Growth and Balanced Capital Allocation Max Chiara Chief Financial Officer
Slide 2: Forward Looking Statements
2 Forward Looking Statements $13B $13B 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 consol
Slide 3: Key Messages
3 Key Messages 1 2 3 Resilience of portfolio and culture of operational excellence driving swift recovery above pre-pandemic levels Strategic focus on responsibly funding growth coupled with continuous cost discipline Robust cash flows poised to reduce leverage and strengthen credit profile Balanced
Slide 4: Financial Track Record: Resilience of Portfolio and Swift Cost Actions Drive Recovery in 2021
4 Financial Track Record: Resilience of Portfolio and Swift Cost Actions Drive Recovery in 2021 Above Pre-pandemic Levels Revenue Operating Income/Loss Adjusted EBITDA(1) $0.5 -$0.1 ~$0.9 2019 2020 2021E 2019 2020 2021E $1.5 $1.0 >2019 levels 2019 2020 2021E 12% NA ~22% 36% 32%Margin 85% $3.1 ~$4.1$
Slide 5: Our Framework for Long-term Value Creation
5 Our Framework for Long-term Value Creation Multi-year Targets Provide Runway to Compelling Value Creation GROW OPTIMIZE INNOVATE Accelerated revenue growth and increased cash flow conversion to support higher shareholder returns Structural cost savings and a more efficient capital structure create
Slide 6: 2021-2025 Outlook: Accelerating Growth and a Clear Path to Stronger Margins
6 2021-2025 Outlook: Accelerating Growth and a Clear Path to Stronger Margins 69% 27% 4% Global Lottery Global Gaming Digital & Betting 2021E Revenue Mix • Financial Objectives Mid-single-digit organic revenue growth, expected to reach $4.6B-$5.0B in 2025 • Building on leadership positions in Lotter
Slide 7: Building Blocks to Substantially Higher Operating Profit and Margin
7 Building Blocks to Substantially Higher Operating Profit and Margin ~22% 26%-29% (1) At the mid-point of the target margin range 2021 Lottery Discrete Benefits • Italy gaming hall closures • LMA incentives and elevated jackpots in the U.S. • Aggregate benefit of ~300 basis points Optimization Init
Slide 8: All Segments Driving Revenue and Profit Growth
8 $91 $115 ~$160 • Stronger revenue growth profile in 2019- 2025 vs. pre-pandemic period of 2015-2019 • Benefit from emerging instant ticket services and iLottery opportunities • Top-line growth, operating cost discipline driving margin expansion • Robust, double-digit revenue CAGR across all activi
Slide 9: Structural Cost Reductions and Discipline Create a Leaner, More Efficient Enterprise
9 25% 75% • Optimization of procurement and assembly processes • Supply chain and logistics simplification • Reduced complexity of product offer and geographic mix • Optimization of resources by specialty/geography • Pandemic-induced cost freeze • Optimization of back-office functions • Disciplined
Slide 10: OPtiMa 2.0: Opportunities for Additional, Structural Profit Improvement
10 33% 67% • Supply chain optimization (absorbing recent supply chain issues and shortages) • Realigning global real estate/facilities footprint • IT systems and infrastructure leveraged across portfolio • Interest cost savings through proactive capital structure optimization • Cost of debt lowered
Slide 11: Capital Expenditures and Research & Development Investments
11 Capital Expenditures (~$1.6 Billion) 41% 59% By Category 45% 44% 11% Global Lottery Global Gaming ~$2.8B Designated for Strategic Investments(1) in Growth (2022-2025) (1) Strategic Investments include CapEx and R&D (inclusive of IP license fees), exclude license fee for Italy Lotto renewal in 202
Slide 12: Lottery Investments Offer Compelling Returns
12 Lottery Investments Offer Compelling Returns • Project-specific NPV/IRR targets ensure prudent capital deployment • Resilient growth profile and responsible investment parameters drive double-digit returns well above weighted average cost of capital • Investments in technology and adjacent, emerg
Slide 13: Gaming R&D Investments Focused on Driving Efficiency and Profitable Growth
13 Gaming Project-specific KPIs: Magnitude of Investment2021E 2025E • Investment prioritizing areas of highest revenue growth and profitability improvement • International and global core markets offer further opportunity for profit improvement • Strategic focus on multi-level progressives to drive
Slide 14: Robust Cash Flow is the Engine for Value Creation
14 Robust Cash Flow is the Engine for Value Creation ~$2.4B Cumulative Cash Flow Generation 2022-2025 • Steadily increasing cash from operations, free cash flow pre-Italy Lotto renewal • Cash conversion (cash from operations/Adjusted EBITDA) improving to ~65% pre-Italy Lotto renewal • Multi-year per
Slide 15: A Capital Allocation Framework for Maximizing Shareholder Value
15 A Capital Allocation Framework for Maximizing Shareholder Value Dividends Reinstated quarterly cash dividend of $0.20 per common share; ~$170M/year Share Repurchases Implementing multi-year $300M program as a combination of structured and opportunistic buying Delevering Reduce debt to achieve net
Slide 16: Bringing it all Together: A Balanced Approach to Investing and Providing Capital Returns
16 Bringing it all Together: A Balanced Approach to Investing in the Business and Providing Compelling Capital Returns Cash From Operations (1) 2022-2025 Legal entity and organizational realignment of Digital & Betting segment expected to be completed within 12 months to support evaluation of potent
Slide 17: Strong Credit Profile with Flexible Balance Sheet, Ample Liquidity
17 19 232 232 232 46361 579 1,100 1,618 750 579 750 1,774 2021 2022 2023 2024 2025 2026 2027 2028 2029 Bank Debt Bonds Undrawn RCF Debt Maturities ($M)Net Debt(1) Strong Credit Profile with Flexible Balance Sheet, Ample Liquidity Targeted net debt leverage(1) of 2.5x-3.5x over the investment cycle Q
Slide 18: Financial Targets Provide Runway to Compelling Value Creation
18 Financial Targets Provide Runway to Compelling Value Creation 2021E 2022E 2025E Revenue ~$4.1B $4.1-$4.3B $4.6-$5.0B (+mid-single-digit CAGR) Operating Income ~22% Margin (Includes ~300 basis points of Lottery discrete benefits)(3) 20%-22% Margin 26%-29% Margin (+mid-teens CAGR) Cash from Operati
Slide 19: High Confidence in Achievability of the Plan
19 Impact of variances well-understood; financial plan reasonably protected High Confidence in Achievability of the Plan Illustrative Scenario Analysis (IGT PLC) • 10% headwind to 2025E upper range revenue results in 300+ bps of margin compression; proactive potential mitigants include: – Reprioriti
Slide 20: Key Messages
20 Key Messages 1 2 3 Resilience of portfolio and culture of operational excellence driving swift recovery above pre-pandemic levels Strategic focus on responsibly funding growth coupled with continuous cost discipline Robust cash flows poised to reduce leverage and strengthen credit profile Balance
Slide 21: Appendix
Appendix @ IGT.
Slide 22: Reconciliations of Non-GAAP Measures - Year Ended December 31, 2020
22 Reconciliations of Non-GAAP Measures For the year ended December 31, 2020 Business Global Global Digital & Segment Corporate Total Lottery Gaming Betting Total and Other IGT PLC Loss from continuing operations (875) Provision for income taxes 28 Interest expense, net 398 Foreign exchange loss, ne
Slide 23: Reconciliations of Non-GAAP Measures - Year Ended December 31, 2019
23 Reconciliations of Non-GAAP Measures For the year ended December 31, 2019 Business Global Global Digital & Segment Corporate Total Lottery Gaming Betting Total and Other IGT PLC Loss from continuing operations (3) Provision for income taxes 131 Interest expense, net 411 Foreign exchange gain, net
International Game Technology — Investor Day (November 2021) on 6ix