Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (January 2019)
27 slides from Inspired Entertainment's investor presentation, Jan 23, 2019
Slide 1: Investor Presentation – Inspired Entertainment, Inc. (INSE) January 2019
Investor Presentation – Inspired Entertainment, Inc. (INSE) January 2019 Investor Presentation – Inspired Entertainment, Inc. (INSE)
Slide 2: Forward-Looking Statements
PAGE 1 Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding our business strategy, plans and objectives and o
Slide 3: Introduction
PAGE 2 Introduction Inspired Entertainment, Inc. is a leading provider of content, technology and services for regulated distributed gaming and lottery sectors worldwide
Slide 4: Management Presenting
PAGE 3 Lorne Weil Executive Chairman During his tenure as Chairman of the Board and Chief Executive of Scientific Games Corporation (Nasdaq: SGMS), SGMS grew revenues from ~$25 million to over $1 billion. Founded NASDAQ-listed Hydra Acquisition Corp. in 2014 and merged with Inspired Gaming in Decemb
Slide 5: Historical Financial Information: Adjusted EBITDA
PAGE 4 $24.2 $33.4 $37.2 $41.1 $51.8 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 FY14A FY15A FY16A FY17A FY18 Constant FX Note: Constant FX figures based on 1.29 GBP:USD exchange rate. (1) On a constant currency basis. (2) See the Appendix for a reconciliation of our non-GAAP financ
Slide 6: Significant opportunities to drive growth in North America
PAGE 5 Significant opportunities to drive growth in North America – First major U.S. lottery launched Virtual Sports in 2018 The Opportunity Recurring, participation-based long-term contracts account for approximately 90% of revenue A leading B2B provider of server based gaming and virtual sports, g
Slide 7: Key Drivers in Inspired Businesses
PAGE 6 Key Drivers in Inspired Businesses Server Based Gaming 72.5% of FY2018 Reported Adjusted Revenue ($99.6MM) (1)(2) Regulated Gaming Globally Shifting Share from Fewer Casinos to Many “Distributed” Venues Virtual Sports 24.8% of FY2018 Reported Revenue ($34.1MM) (1)(2) Tremendous Interest in Sp
Slide 8: North American VLT Potential
PAGE 7 North American VLT Potential l Regulated Gaming Shifting from Few Casinos with Many Machines to Many Venues with Few Machines —Canada —Illinois —Oregon —Pennsylvania l Wide Area Gaming Works Best with Video Lottery Terminals (“VLTs”) —Access to 100+ games on each machine —Update games and sof
Slide 9: Well Positioned for North America VLTs
PAGE 8 l Wide Area Gaming Experience —Top performing games in the UK, Italy and Greece l First Time Targeting North America —Management team with combined 50+ years of experience growing North American gaming businesses —GLI approved and G2S ready for North America Well Positioned for North America
Slide 10: Inspired Outperforms in Greece
PAGE 9 Inspired Outperforms in Greece Proven Success Following VLT Implementation in 2017 5 of the Top 10 games #1 performing game Awarded 60% of additional volume • Inspired Was One of Four VLT Suppliers, All with Machines Installed at the Same Time in OPAP Betting Shops. —Simultaneous installation
Slide 11: A Pioneer in Virtual Sports
PAGE 10 A Pioneer in Virtual Sports l Creator and A World Leader in Virtual Sports l Extremely Popular in UK, Italy and Greek Betting Shops l Bringing Virtual Sports to North America 43,000+ retail channels 100+ websites
Slide 12: Award-Winning Virtual Sports
PAGE 11 Award-Winning Virtual Sports
Slide 13: Coming Soon: Basketball
PAGE 12 Coming Soon: Basketball
Slide 14: Virtual Sports: Successful Launch
PAGE 13 Virtual Sports: Successful Launch Virtual Sports Launched Successfully in Greece in May 2017 (1) According to OPAP financial reports 2016 FIRST 7 MONTHS FIRST 12 MONTHS $475M $600M $0 Additional Turnover from Virtual Sports in Greece(1) Attracted > 22,000 new players >$400MM distributed to w
Slide 15: Best in Class Post-Launch Marketing Campaign Across All Media Formats
PAGE 14 Best in Class Post-Launch Marketing Campaign Across All Media Formats
Slide 16: First Major US Lottery Launch
PAGE 15 First Major US Lottery Launch xPress Sports – Virtual Football Pennsylvania Lottery Launched Xpress Sports in August 2018 xPress Sports – Virtual Stock Car Racing Each event < 90 seconds New events about every 3 minutes
Slide 17: Pennsylvania Opportunity
PAGE 16 Pennsylvania Opportunity POPULATION: 12.8M GDP: $752.1B GDP PER CAPITA: $32,711 9,000 RETAIL LOCATIONS POPULATION: 10.8M GDP: $200.3B GDP PER CAPITA: $18,613 4,500 AGENCIES VS. PENNSYLVANIA GREECE $600M ANNUAL TURNOVER
Slide 18: Interactive: Leverage Content Across Platforms
PAGE 17 Source: H2 Gambling Capital Interactive: Leverage Content Across Platforms Big online gaming operators using our top performing game titles and award-winning Virtual Sports content online and on mobile devices worldwide. Well Positioned to Take Advantage of High Growth in Online and Mobile G
Slide 19: Instant Win Virtual Sports
PAGE 18 Instant Win Virtual Sports
Slide 20: Key Drivers in Inspired Businesses
PAGE 19 Key Drivers in Inspired Businesses Server Based Gaming Regulated Gaming Globally Shifting Share from Fewer Casinos to Many Venues Virtual Sports Tremendous Interest in Sports Betting Especially with Overturning of PASPA Interactive Leveraging Top-Performing Games and Virtual Sports In Rapidl
Slide 21: Market Capitalization
PAGE 20 Market Capitalization Note: Balance Sheet items are as of September 30th, 2018 (1) Senior bank debt is denominated in USD. Includes unamortized deferred financing charge. Does not include undrawn revolving credit facility of £7.5 million (denominated in GBP) (2) Excludes any unvested managem
Slide 22: Appendix
INSPIRED « Appendix
Slide 23: FY 2018 Financial Summary
PAGE 22 FY 2018 Financial Summary (1) See elsewhere in Appendix for reconciliation to most comparable GAAP measure. Twelve Months Ended September 30, 2018 audited US$ 000’s Server Based Gaming Virtual Sports Corporate Total Revenue 103,618 37,763 - 141,381 Cost of Sales, excluding D&A (26,154) (4,62
Slide 24: Virtual Sports and SBG KPIs
PAGE 23 23,236 25,612 26,374 26,590 28,715 33,194 2013A 2014A 2015A 2016A 2017A 2018A 42 54 64 77 85 97 2013A 2014A 2015A 2016A 2017A 2018A Virtual Sports: No. of B2B Operators at End of Period(1) SBG: End of Period Installed Base (1) Represents the number of B2B operators from which there is Virtua
Slide 25: Historical Consolidated Income Statement
PAGE 24 Historical Consolidated Income Statement FYE Sep, US$ 000’s 2018A 2017A 2016A 2015A 2014A Revenue: Service 130,924 107,496 112,200 115,325 120,868 Hardware 10,457 15,048 7,573 12,248 25,930 Total revenue 141,381 122,544 119,773 127,573 146,798 Cost of sales, excluding depreciation and amorti
Slide 26: Non-GAAP Reconciliation: Adjusted EBITDA
PAGE 25 Non-GAAP Reconciliation: Adjusted EBITDA Note: For an explanation of the adjustments in this reconciliation, see ‘Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures’ in the Company’s most recent 10-K filed with the SEC on Decembe
Slide 27: Non-GAAP Reconciliation: Adjusted Revenue and SBG Adjusted Revenue
PAGE 26 Non-GAAP Reconciliation: Adjusted Revenue and SBG Adjusted Revenue Note: For an explanation of the adjustments in this reconciliation, see ‘Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures’ in the Company’s most recent 10-K fil
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