Slide 1: Penn National Gaming's Acquisition of Score Media and Gaming
PennNationalGaming’sAcquisition of Score Media and Gaming Creating North America’s Leading Digital Sports Content, Gaming and Technology Company
Slide 2: Forward-looking statements
All statements included in this presentation of Penn National Gaming, Inc. (“Penn National” or the “Company”), other than historical information or statements of historical fact, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forwar
Slide 3: Non-GAAP financial measures: Adjusted EBITDA
This presentation uses Adjusted EBITDA, which is a non-GAAP financial measure. This non-GAAP financial measure should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP. We define Adjusted EBITDA as earnings before int
Slide 4: Key transaction rationale
1Fortifies our bespoke digital media and gaming strategy, creating a complete one-stop destination Utilizing highly engaging content to drive 2 efficient and profitable customer acquisition across all channels Addition of theScore’s fully integrated betting and media platform 3 into Penn’s existing
Slide 5: Innovative digital sports content, gaming and technology company
Innovative digital sports content, gaming and technology company Retail Content Product 4
Slide 6: Deliberate investment strategy at the epicenter of sports, media, gaming and technology
Deliberate investment strategy places us at the epicenter of sports, media, gaming and technology, providing us with brand equity and multiple channels for future growth eSports Sports Talent & Influencers TechnologyMedia Gaming HospitalityExperiential 5
Slide 7: Sports content with seamlessly integrated betting platform
High impact and technology driven sports content with seamlessly integrated betting platform Technology Fully-integrated media / betting solution(1) Data driven user analytics Experienced engineering team Betting Online sports betting and iCasino platform Highly customized bets and promotions Live b
Slide 8: Near-Term and Lasting Financial Impact
Near-Term and Lasting Financial Impact Near Term Medium TermLong Term Adj. EBITDA Accretive in Year 2, inclusive of increased investments in technology and marketing $400mm+ revenue and $200mm+ incremental Adj. EBITDA opportunity $900mm+ revenue and $500mm+ incremental Adj. EBITDA upside potential F
Slide 9: Content and betting integration
CONTENT Data Driven Content Seamless media to betting app integration BETTING User Interface Predictive Analytics In App Bet Slip Sportsbook & Casino PAM & Wallet Bet Tracking Live Odds Bettors that connect both apps generate 88% more handle(1) Customer Service Proprietary FUSE Feature 8 (1) Source:
Slide 10: Best-in-Class Sports Media Brand
Best-in-Class Sports Media Brand (1) Catering to an Engaged and Active User Base North AmericaCanada 359%(2) 1 2 3 4 5 25%(2) YoY Monthly Unique Visitors 21%(2) YoY Total Reach 113 Minutes / User / Month (3) 9284 8477 5147 Source: Comscore; based on average of monthly unique visitors as of May 2021
Slide 11: Multi-layered personalized approach to engaging customers
Multi-layered personalized approach to engaging customers, which allows for content optimization and surgical audience targeting Massive Audience Highly Engaged Personality and Event Driven Influencers 142 Minutes per Mobile User per Month(1) 130M+ Stoolies(2) Attractive Demographics 3.1/1.6 Mobile/
Slide 12: Barstool and theScore comprehensive ecosystem
Barstool and theScore are positioned to drive users and content to both platforms, creating a comprehensive ecosystem that keeps sports fans within our broader network 123 ✓ Statistics, scores and news ✓ Social and community features ✓ Audience segmentation ✓ Fully-integrated betting app ✓ More pers
Slide 13: Retail, media, online sportsbook and iCasino
Retail Casinos Media, Content and Product Advertising & Brand Licensing Online Sportsbook & iCasino Merchandise 12
Slide 14: Full ownership of an innovative technology stack
Penn to gain full ownership of an innovative technology stack built specifically for the North American market, which will lead to greater flexibility, increased product offerings and significant cost savings Content / Media iCasino Sportsbook Massive social media reach Scores, stats and news Live s
Slide 15: Best-in-Class Sports Media in Canada
Best-in-Class Sports Media in Canada Penn is Highly Committed to Canada theScore Has Over 9x ESPN in Mobile Sports App MAUs (1) Founded and backed by the Levy family, Canadian entrepreneurs with a long track records of success in Canadian sports media Penn believes the Canadian gaming market represe
Slide 16: Transaction overview, financing, approvals and timing
Overview Financial Opportunity Financing Approvals & Timing Penn National Gaming, Inc. (“Penn” or “the Company”) to acquire Score Media and Gaming Inc. (“theScore”) for ~$2.0bn in an acceleration of its digital and content transformation Consideration to theScore’s shareholders of 0.2398 Penn shares
Slide 17: Adjusted EBITDA impact: medium and long term
Medium Term (2026)Long Term Drive Profitability Volumetric Cost Savings(1) ~$90mm Adjusted EBITDA Impact ~$195mm Adjusted EBITDA Impact Future Growth Expand into New Verticals ~$110mm Adjusted EBITDA Impact ~$315mm Adjusted EBITDA Impact 16 (1) Volumetric savings for other fees, including content, p
Slide 18: Improved Adjusted EBITDA margins from eliminating third-party fees
The transaction will ultimately improve Penn’s Adjusted EBITDA margins by eliminating third-party player account management and trading platform fees Expected North American Sports Betting & iCasino TAM Impact of 500bps Increase in Adjusted EBITDA Margins $285 million $30 billion Estimated TAM(1) $1
Slide 19: Increased economics from content, technology and Canadian presence
Best-in-class content and technology, together with a strengthened Canadian presence, will lead to increased economics $30 billion Estimated TAM(1) $ 300 million $ 105 million $ 900 million $ 315 million $ 1,500 million Revenue Adjusted EBITDA(2) $ 525 million 1%3%5% Incremental North American Share
Slide 20: Powerful and differentiated strategy creating stakeholder value
We believe our strategy is powerful and differentiated and will create value for all of Penn’s stakeholders One Few Some Many Fully-Integrated Sports Content, Gaming and Media Company Co-Branded Media Platforms National Media Partners North American Online Gaming Operators 19
Slide 21: Creating North America's Leading Digital Sports Content, Gaming and Technology Company
Creating North America’s Leading Digital Sports Content, Gaming and rTechnology Company Leading Gaming and Media Brands Highly Engaging Content and Community In-House Technology High-Growth North American Markets Enhanced Profitability