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 — Q4 2015 Earnings Presentation
30 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's earnings presentation, Mar 17, 2016
Slide 1: Agenda
3/17/2016 2 Agenda Marco Sala, CEO, International Game Technology PLC Strategic Update 1 Alberto Fornaro, CFO, International Game Technology PLC Q4’15 & FY’15 Results 2 Q&A 3
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
3/17/2016 3 Cautionary Statement Regarding Forward-Looking Statements This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning IGT and other matters. These statements may discuss goals, intentions and e
Slide 3: Comparability of Results
3/17/2016 4 Comparability of Results All figures in this presentation are prepared under U.S. GAAP, unless noted otherwise. As a result of the combination of GTECH S.p.A. (“GTECH”) and International Game Technology (“legacy IGT”), which was completed on April 7, 2015, a number of items affect the co
Slide 4: Comparability of Results
way Comparability of Results All figures in this presentation are prepared under U.S. GAAP, unless noted otherwise. As a result of the combination of GTECH S.p.A. ((GTECH') and International Game Technology (“legacy IGT"), which was completed on April 7, 2015, a number of items affect the comparabil
Slide 5: Strategic Update
3/17/2016 6 Strategic Update Results at high-end of expectations Solid profitability, over-delivered on synergies Strong free cash flow generation, disciplined capital management, and debt reduction A year of important milestones Industry leadership established Integration achieved Lottery operation
Slide 6: Strategic Update
3/17/2016 7 Strategic Update Our mission is to be the global innovation leader, driving customer and player demand, and defining the future of gaming Five areas of strategic focus Grow Lottery worldwide Gain Gaming market share Expand Social & Interactive Protect Italian positions Grow profits, achi
Slide 7: 2015 Fourth Quarter Financial Results
2015 FOURTH QUARTER FINANCIAL RESULTS
Slide 8: Q4'15 Financial Highlights (Pro Forma)
3/17/2016 9 Revenue Adjusted Operating Income Q4’15 Financial Highlights (Pro Forma) Adjusted EBITDA Diluted EPS $ M except EPS +5% +8% +17% Notes: 1.) As adjusted results remove impact of purchase price amortization, impairment charges, restructuring expense and transaction expense (see appendix fo
Slide 9: Stable and resilient profit results throughout the year
Stable and resilient profit results throughout the year; pro forma, adjusted EBITDA consistently above $400 million 3/17/2016 10 Adjusted EBITDA 2015 Pro Forma, Adjusted EBITDA Trends Adjusted EBITDA (Constant $) $ M As adjusted results remove impact of purchase price amortization, impairment charge
Slide 10: Q4'15 Revenue & Operating Income
Pro Forma Revenue 3/17/2016 11 Q4’15 Revenue & Operating Income $ M Product sales up on 11,562 gaming machine unit shipments, including growth in North America new & expansion units and International replacement units; profit contribution impacted by mix Gaming operations relatively stable despite a
Slide 11: Q4'15 North America Gaming & Interactive Highlights
3/17/2016 12 Developments Q4’15 North America Gaming & Interactive Highlights Revenue $ M Key Performance Indicators Strongest quarter of machine unit sales in 2015; significant pick-up in new and expansion sales (VLTs) Total 2015 replacement sales modestly above the prior year, suggesting stabiliza
Slide 12: Q4'15 North America Lottery Highlights
3/17/2016 13 6% same-store revenue growth on strength in instant tickets and local draw-based games; multi-state jackpots were mixed New business/wins in Canada and Colorado continued to be important contributors to growth LMA impact primarily related to Illinois penalty incurred in the prior year p
Slide 13: Q4'15 International Highlights
3/17/2016 14 Revenue increased 5% at constant currency Strong product sales growth on gaming machine replacement units, with particular strength in Latin America (Peru); includes Mexico conversion of 600 lease-to-sale units in Q4’15 Lottery product sales down on difficult comparisons with large Belg
Slide 14: Q4'15 Italy Highlights
3/17/2016 15 Q4’15 Italy Highlights $ M Revenue Key Performance Indicators Overall resilience in underlying operating trends is confirmed Strong Lotto wager growth, surpassing €7 billion, fueled by 10eLotto/Numero ORO Scratch & Win trends continue to improve on new product introductions; good perfor
Slide 15: FY'15 Financial Highlights (Pro Forma)
Notes: 1.) As adjusted results remove impact of purchase price amortization, impairment charges, restructuring expense and transaction expense (see appendix for details) 2.) $/€ FX daily average: 1.11 in FY’15; 1.33 in FY’14 3/17/2016 16 Revenue Adjusted Operating Income FY’15 Financial Highlights (
Slide 16: Synergy Update
3/17/2016 17 Synergy Update Run rate of actions implemented tracking three months ahead of plan Originally targeted annualized run rate of synergies to be ~$160 million by April 2016 Achieved goal in the fourth quarter of 2015 Total synergy target increased to $270 million from $230 million $230 mil
Slide 17: Debt and Leverage Profile
3/17/2016 18 $ M Debt and Leverage Profile Note: $/€ FX: 1.12 at 6/30/15, 1.12 at 9/30/15, 1.09 at 12/31/15 Net Debt Net Debt/LTM EBITDA 12/31/15 Long-Term Debt, Less Current Portion IGT PLC Senior Notes 4,810 IGT PLC Term Loan 867 Revolving Facilities 835 Notes Due February 2018 (Legacy GTECH) 534
Slide 18: FY'15 Cash Flow Statement
3/17/2016 19 FY’15 Cash Flow Statement $ M Strong Q4’15 performance Includes approximately $160 million in one-time, transaction-related items Excludes $57 million in free cash flow from legacy IGT in the first calendar quarter of 2015 FY’15 Free Cash Flow Impacts Includes approximately $100 million
Slide 19: FY'15 Actual vs. Guidance
3/17/2016 20 FY’15 Actual vs. Guidance Category 2015 Guidance 2015 Actual Pro Forma Adjusted EBITDA $1.605B – $1.705B $1.704B Synergies Two-thirds of $230M in annualized cost savings by April 2016 Over $110M gross synergies/$95M in P&L synergies achieved in 2015 Annualized cost savings target achiev
Slide 20: FY'16 Outlook: Assumes Successful Lotto Renewal
3/17/2016 21 FY’16 Outlook: Assumes Successful Lotto Renewal 2016 adjusted EBITDA of $1.74-$1.79 billion Incremental synergies of at least $70 million Gross incremental Stability Law taxes of ~$30 million, to be mitigated by lower payout Lower contribution from Lotto, reflecting new concession terms
Slide 21: Medium-Term Perspective
3/17/2016 22 Medium-Term Perspective Average, normalized free cash flow of at least $500 million annually Normalization spreads upfront Lotto and Scratch & Win payments evenly over contract terms Assumes no working capital impact [Expect to be below average in 2016 due to Lotto; significant ramp-up
Slide 22: Medium-Term Perspective
y) Medium-Term Perspective Average, normalized free cash flow of about $500 million annually over next five years ‘Normalization spreads upfront Lotto and Scratch & Win payments evenly over contract terms + Assumes no working capital impact Expect to be below average in 2016 due to Lotto Leverage ta
Slide 23: Q4'15 Financial Highlights (As Reported)
3/17/2016 24 Operating Income $ M Q4’15 Financial Highlights (As Reported) Adjusted EBITDA Net Debt Revenue Guidance: Below $8B As adjusted results remove impact of purchase price amortization, impairment charges, restructuring expense and transaction expense (see appendix for details)
Slide 24: Q4'15 Income Statement (As Reported)
3/17/2016 25 Note: $/€ FX daily average: 1.10 in Q4’15; 1.25 in Q4’14 $ M except EPS Q4’15 Income Statement (As Reported) % Income Statement Q4'15 Q4'14 Change Service Revenue 1,109 845 31% Product Sales 256 106 142% Total Revenue 1,365 951 44% Adjusted EBITDA 449 321 40% Operating Income 132 114 15
Slide 25: Reconciliation of Non-GAAP Measures
3/17/2016 26 Reconciliation of Non-GAAP Measures $ M 1 Transaction expense (income), net is composed of transaction costs on significant business combinations and significant gains and losses incurred on disposals of group entities or businesses. These items are only incidentally related to our ordi
Slide 26: Reconciliation of Non-GAAP Measures
3/17/2016 27 Reconciliation of Non-GAAP Measures $ M 1 Transaction expense (income), net is composed of transaction costs on significant business combinations and significant gains and losses incurred on disposals of group entities or businesses. These items are only incidentally related to our ordi
Slide 27: Q4'15 Reconciliation of Non-GAAP Measures
3/17/2016 28 Q4’15 Reconciliation of Non-GAAP Measures $ M Q4'15 As Adjustments Q4'15 As Reported PPA FX Restruct. Tx Cost Impair. Adjusted Total Revenue 1,365 2 - - - - 1,367 Revenue Driven Costs 854 (73) - - - - 781 Operating Expenses 328 (35) - - - - 293 Restructuring 35 - - (35) - - - Transactio
Slide 28: FY'15 Income Statement (As Reported)
3/17/2016 29 Note: $/€ FX daily average: 1.11 in FY’15; 1.33 in FY’14 $ M except EPS FY’15 Income Statement (As Reported) % Income Statement FY'15 FY'14 Change Service Revenue 3,978 3,490 14% Product Sales 711 322 121% Total Revenue 4,689 3,812 23% Adjusted EBITDA 1,611 1,389 16% Operating Income 54
Slide 29: FY'15 Reconciliation of Non-GAAP Measures
3/17/2016 30 FY’15 Reconciliation of Non-GAAP Measures $ M FY'15 As Adjustments FY'15 As Reported PPA FX Restruct. Refinan. Tx Cost Impair. Adjusted Total Revenue 4,689 16 - - - - - 4,705 Revenue Driven Costs 2,938 (245) - - - - - 2,693 Operating Expenses 1,073 (104) - - - - - 969 Restructuring 77 -
Slide 30: FY'15 Reconciliation of Non-GAAP Measures
AN FY’15 Reconciliation of Non-GAAP Measures FYIS Ae jstmente FY6 Ae Reported PPAF Renan, Tx Cost impair. Acjusted Total Revenue 4,689 16 : : : + 4,705 Revenue Driven Costs 2938245) : : : : + 2693 ‘Operating Expenses 1,073 (108) : : : = 969 Restructuring 7 : a : : . ‘Transaction Expense 9 : : : nc)
International Game Technology — Q4 2015 Earnings Presentation on 6ix