Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (March 2019)
27 slides from Inspired Entertainment's investor presentation, Mar 13, 2019
Slide 1: Investor Presentation - Inspired Entertainment, Inc. (INSE)
INSPIRED Investor Presentation - Inspired Entertainment, Inc. (INSE) March 2019
Slide 2: Legal Matters/Non-GAAP Financial Disclosures
Legal Matters/ Non-GAAP Financial Disclosures INSPIRED wc eee nab trac oe: rest so eee ents fener itso cde ar fresno reratcarery no
Slide 3: Introduction
4 Introduction INSPIRED suff Inspired Entertainment, Inc. is a leading provider of content, technology and services for pbicntash distributed gaming and ean sectors worldwide a 2 = SA Secodere § Adenw. cswat B kopap ~GVG~ | sc sus | seo |
Slide 4: Management Presenting
< y Management Presenting INSPIRED Lorne Weil Executive Chairman During his tenure as Chairman of the Board and Chief Executive of Scientific Games Corporation (Nasdaq: SGMS), Scientific Games grew revenues from ~$25 million to over $1 billion. Founded NASDAQ-listed Hydra Acquisition Corp. in 2014 a
Slide 5: Historical Financial Information
4 s Historical Financial Information INSEE Inspired’s Adjusted EBITDA has grown approximately 42%” since merging with Hydra in December 2016. FYi4 FY15 cvs ovi7 ovis © Actual FX SeConstant FX —e-Adjusted EBITDA Margin (on (2 scetne Pope Gres Bi aa
Slide 6: The Opportunity
<4 The Opportunity INSPIRED A leading B2B provider of server id virtual log retail online and vehicles ett e Recurring, participation-based long-term contracts account for approximately 90% of revenue 30.1%, respectively. Adj. EBITDA margin expanded by ~570 bps! e@ Appreciable operating leverage ~Y2
Slide 7: Key Drivers in Inspired Businesses
<4 y Key Drivers in Inspired Businesses INSPIRED Peel Based Gaming Regulated Gaming Globally Shifting Share from Fewer Casinos to Many “Distributed” Venues Interactive 2.4% of C2018 Reported Revenue ($3.2MM) Leverage Top-Performing Games and Virtual Sports In Rapidly Growing Online Gaming and Lotter
Slide 8: Wide Area Gaming Becoming More Pervasive Around the World
Wide Area Gaming Becoming More Pervasive <4 Around the World INSPIRED © Server Based Gaming is Preferred in Countries Throughout Europe —Many Venues with Few Machines in Italy, UK, Greece Growth Outside Europe, Particularly in North America, is Shifting from Large Casinos To Many Distributed Venues
Slide 9: Well Positioned for North America VGTs
4 Well Positioned for North America VGTs INS BRED Top Performing Games in Key Jurisdictions Position Inspired for Success in North America @ Wide Area Gaming Experience —Top performing games in the UK, Italy and Greece ¢ First Time Targeting North America —Management team with combined 50+ years of
Slide 10: Inspired Outperforms in Greece
=— 4 25—= inspired Inspired Outperforms in Greece opap Proven Success Following VGT Implementation in 2017 F Inspired Was One of Four VGT Suppliers, All with Machines Installed at the Same Time in OPAP Betting Shops. allows for true between suppliers —At launch, Inspired had: —#1 performing game —5
Slide 11: A Pioneer in Virtual Sports
<4 v A Pioneer in Virtual Sports INSPIRED © Creator and a World Leader in Virtual THE SEASON Sports & © Extremely Popular in UK, Italy and e \a NEVER ENDS a 4 Greek Betting Shops © Successful online and on mobile © Bringing Virtual Sports to North America 100+ websites
Slide 12: Video: Award-Winning Virtual Sports
4 Video: Award-Winning Virtual Sports INSEE GUTTING EDGE ANIMATION -
Slide 13: Video: Basketball Coming This Spring
4 INSPIRED Video: Basketball Coming This Spring
Slide 14: Virtual Sports: Successful Launch
= 2 Virtual Sports: Successful Launch 3k opap <== INSPIRED Virtual Sports Launched Successfully in Greece in May 2017 * Inspired launched with one Virtual Sports channel in ~4,500 venues * Second channel added in December 2018 Additional Turnover from Virtual Sports in Greece”) >$6 $600M turnover $4
Slide 15: Video: Best in Class Post-Launch Marketing
Video: Best in Class Post-Launch Marketing v Campaign Across All Media Formats INS BRED VIR TuAL SPORTS a Pame Stoixima Virtual Sports is here
Slide 16: First Major US Lottery Launch
4 First Major US Lottery Launch INSEE Pennsylvania Lottery Launched Xpress Sports in August 2018 PENNSYLVANIA LOTTERY = Each event < 90 seconds
Slide 17: Pennsylvania Opportunity
<4 Pennsylvania Opportunity ee vs. $600M ANNUAL TURNOVER we POPULATION: 12.8M POPULATION: 10.8M GDP: $752.1B GDP: $200.3B GDP PER CAPITA: $32,711 GDP PER CAPITA: $18,613 9,000 RETAIL LOCATIONS 4,500 AGENCIES
Slide 18: Leverage Server Based Gaming and Virtual Sports Content Across Interactive Platforms
<4 Leverage Server Based Gaming and Virtual INSPIRED Sports Content Across Interactive Platforms Well Positioned to Take Advantage of High Growth in Online and Mobile Gaming Online gaming growing more rapidly than global gaming and lottery industry. $51BN 2008A 2018E ec: 12 Gating Cont 5 7 "i CORAL*
Slide 19: Video: Instant Win Virtual Sports
4 Video: Instant Win Virtual Sports INSEE we . ~ INSPIRED a fe ed 1 | £9 7% oo WNipIO i 59 $10°000 § v3) 5 Va Trass run St
Slide 20: Key Drivers in Inspired Businesses
<4 y Key Drivers in Inspired Businesses INSPIRED Server Based Gaming Regulated Gaming Globally Shifting Share from Fewer Casinos to Many Venues Interactive Leveraging Top-Performing Games and Virtual Sports In Rapidly Growing Online Gaming and Lottery
Slide 21: Market Capitalization
<4 Market Capitalization INS BRED mo —— (unaudited) “Actual — 25118 con 10 eciabui oe a Susana fet set atone ton-emongses Teattop tam bem sas ies Number of Shares” (in millions) 20.861 toa hes Neate 13 aa? lity Market Capitalization (b) $139.1 Vip eng at (5 +000 LW Ac. ETA aot 18 $847 Total ong-Tem
Slide 22: INSPIRED
INSPIRED
Slide 23: 2018 Financial Summary
<4 2018 Financial Summary INSPIRED jonths Ended December 31, Server Based Virtual 135.008 unless steed cherie Gaming Sports Corporie To Revenue 70320137435 = 140,726 Cost of Sales, excluding DEA (26,688) (4,560) = 1,248) “Gross Profit 76,603 32,875 = 108,478 Selling, general and administrative expen
Slide 24: Virtual Sports and SBG KPIs
4 INSPIRED Virtual Sports and SBG KPls Virtual Sports: No. of B2B Operators at End of Periodt”! en mene
Slide 25: Historical Consolidated Income Statement
<4 Historical Consolidated Income Statement INSPIRED LT December 31st, USS 0008, 2o1a___ 017A __ 016 Revenue: Senvce s0903 12600 107.371 Herne sow 42.624 Cant ot enn, ig erecunon and aerzaon Costat serv (23,382) (17283) (16,008) Cost of herdrare (7866) (10888) (4612) San genera arinsre opnses ac07)
Slide 26: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: 4 Adjusted EBITDA INSPIRED t 31st USS 000s 20188 20170, 20168 Net Loss 21.170) (0,886) (65,386) items Relating tol Profit attributable to discontinued analogue activities - - 4 Pension Cha 475 592 604 (Cre Cente Rang o Fomor Opsratons 18 82 75) Litigation Settierient 260 - :
Slide 27: Non-GAAP Reconciliation: Adjusted Revenue and SBG Adjusted Revenue
Non-GAAP Reconciliation: 4, Adjusted Revenue and SBG Adjusted Revenue 'NSPIRED Non-GAAP Adjusted Revenue LTM December 31st, USS 000's 20184 20178 20164 Reported Revenue per Financial Statements 140,726 128,894 115,995 Less Ni Margin Sales (4,021) (4.787) (630) Less Analogue Revenues : 4 136,705 422,
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