Bally's Corporation · NYSE:BALY

Bally's — Q4 2021 Earnings Presentation

30 slides from Bally's's earnings presentation, Feb 24, 2022

  1. Slide 1: Fourth Quarter 2021 Earnings Presentation

    INTEGRATE DOUBLE BUBBLE. Potentially AC BlackJack? Fourth Quarter 2021 Earnings Presentation February 24, 2022 Chicago Funding Review February 2022

  2. Slide 2: Disclaimer

    DISCLAIMER Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the securities laws. Forward-looking statements are statements as to matters that are not historical facts, and include statements about Bally’s Corporation (“Bally’s”) plans, objectives

  3. Slide 3: Global, Vertically Integrated

    STRONG FREE NORTH AMERICA CASH FLOW INTERACTIVE GLOBAL, Casinos & Resorts and Unique distribution and VERTICALLY International Interactive content that drives business generate awareness and INTEGRATED significant free cash flow engagement with the to fund growth Bally brand OMNI- investments CHANNE

  4. Slide 4: Strong 2021 Performance

    STRONG 2021 PERFORMANCE CASINOS & • Record revenue and EBITDAR 2021 DYNAMICS • Adj. EBITDAR Margin +800bps RESORTS from 2019 (~40% vs ~32%)(1) • Transformational year with underlying record performance across the board • UK +10% Y/Y, Asia +18% Y/Y INTERNATIONAL • Record revenues and profitability •

  5. Slide 5: Fourth Quarter Results

    FOURTH QUARTER RESULTS INTERNATIONAL NORTH AMERICA CASINOS & RESORTS INTERACTIVE INTERACTIVE • $83MM Adj. EBITDAR ($88MM Ex- • $70MM Adj. EBITDA • Successful combination of Gamesys Atlantic City) • Revenues -4.1%, UK -5.3%, Asia and Bet.Works tech stacks • EBITDAR Margin of 35.6% +400bps +8.2% • Lau

  6. Slide 6: 2022 Outlook

    2022 OUTLOOK CASINOS & • $385-$395MM EBITDAR(1) OUTLOOK ASSUMPTIONS RESORTS • ~1.15+BN revenues • COVID and weather impacts limited to January INTERNATIONAL • Low to mid single digit wage inflation • Mid single digit growth INTERACTIVE • 28-29% EBITDA Margins • Maintaining majority of margin expansi

  7. Slide 7: Business Integration Update

    BUSINESS INTEGRATION UPDATE • Purpose & Values created and rolling out globally • Clear set of Strategic Goals for 2022 • Technology Integration • Full stack integration for Bally Bet 2.0 including PAM, DataLake, Sports Engine and Front End • Working methodologies aligned • Data Integration • Shared

  8. Slide 8: The Bally's Difference

    THE BALLY'S DIFFERENCE

  9. Slide 9: Who We Are?

    WHO WE ARE? 20 years of online and retail National database High awareness of Bally’s casino operational connecting customers brand that will continue to experience across our omnichannel grow with our media and offering content partnerships 500k monthly retail Unique partnership 16 casinos and reso

  10. Slide 10: Bally's Interactive Global Footprint

    BALLY’S INTERACTIVE GLOBAL FOOTPRINT 10

  11. Slide 11: Slide 11

  12. Slide 12: Full Turnkey Gaming & Betting Solution

    Player Account Management FULL System, Gaming Platform, Sports Betting Platform, TURNKEY Retail Betting. GAMING & Retention Based Payment Processing BETTING Marketing, Bonus Development, and Player Fraud Prevention SOLUTION Customer Life Cycle Management Development With in-house US based risk and A

  13. Slide 13: Tech Stack Powering Data Driven Customer Journeys

    TECH STACK POWERING DATA DRIVEN CUSTOMER JOURNEYS Ingesting 2.5 Billion touchpoints from DATA LAKEHOUSE real-time heterogeneous Data sources A cloud-agnostic and non-proprietary Data Lake layer ingesting and transforming data from various source platforms using a common tech stack. Members REPORTING

  14. Slide 14: Tech Stack Powering Data Driven Customer Journeys

    TECH STACK POWERING DATA DRIVEN CUSTOMER JOURNEYS Recommended Recommended Games Engine - Recommends a set of player specific games. Games Value Churn Churn Predictor - Predicts whether a player will churn. Predictor Predictor Conversion Propensity - Predicts whether a player will deposit within the

  15. Slide 15: Online Casino

    ONLINE CASINO 20 years of operational, acquisition & retention success based on data excellence Most successful organically grown Inhouse content resource for exclusive games and multi-brand, casino and bingo retention features operator in the world Global partnerships with B2B providers e.g. SG, IG

  16. Slide 16: Online Casino – Bally Casino

    ONLINE CASINO – BALLY CASINO 16

  17. Slide 17: Online Casino – Bally Casino

    ONLINE CASINO – BALLY CASINO ▪ North America Customer-Centric Sportsbook ▪ New & Bespoke Front End ▪ Proven Platform and Engine ▪ Allows Fast & High-Quality Scalability ALBATROSS SEO Platform Native App Web Product Front End Sports Engine EXCITE PAM EXCITE Boost VITRUVIAN DATA Platform 17

  18. Slide 18: Sports Betting

    SPORTS BETTING 2.0 User Experience: Revamped US-customer centric design Live betting: Bringing play-by-play action through features: Quickbet, AV streaming, Mybets & Cashout Parlay builders: US 6-Pack interface, Parlay Cards, Same-Game-Parlay, Statistics and much more Trading service: Best-in-class

  19. Slide 19: Retail Sports

    RETAIL SPORTS Planned: Multiple on property sportsbooks to launch in 2022 Platform: Retail sportsbook platform live in North America Key interactions: PoS terminals, self serve betting terminals (Kiosk), Odds display boards Kiosk: UI/UX based on the online product. Supports anonymous and account-bas

  20. Slide 20: Bally Play

    BALLY PLAY Free-to-play engagement experiences - lower CPA’s for Bally Bet Available in regulated and unregulated jurisdictions Predictors, Pick Em’s, Contests, Trivia, Polls & more Huge incentives e.g. cash jackpot prizes with no entry fee Opportunities for brand marketing in upcoming betting state

  21. Slide 21: Bally Bracket – Sinclair/SportCaller Partnership

    BALLY BRACKET – SINCLAIR/SPORTCALLER PARTNERSHIP 21

  22. Slide 22: Bally Play

    Csallys BALLY PLAY Cscllly rree-r0-PLv MAKE IM Your picns BEFORE PUCK DROP 22

  23. Slide 23: Born to Entertain

    BORN TO ENTERTAIN

  24. Slide 24: Focus on Environmental, Social and Corporate Governance initiatives

    Focus on Environmental, Social and Corporate Governance initiatives Responsible Gaming Diversity & Inclusion Bally’s implements responsible gaming employee trainings and Bally’s hiring senior executive for transformation and organizational responsible gaming programs including self-exclusion program

  25. Slide 25: Shares Outstanding Details

    SHARES OUTSTANDING DETAILS Common Shares Outstanding as of February 24, 2022 51,693,210 Sinclair Penny Warrants 7,911,724 Sinclair Performance Warrants(1) 3,279,337 Sinclair Options(2) 1,639,669 Monkey Knife Fight penny warrants 24,611 Monkey Knife Fight contingent shares 787,557 Telescope contingen

  26. Slide 26: Cash & Debt Outstanding

    CASH & DEBT OUTSTANDING Cash and cash equivalents $206.2 $620MM Revolving Credit Facility, 2026(1) $85.0 $1,945MM Senior Secured Term Loan Facility, 2028(1) $1,945.0 Total Secured Debt Outstanding $2,030.0 $750MM 5.625% Senior Notes, 2029 $750.0 $750MM 5.875% Senior Notes, 2031 $750.0 Total Unsecure

  27. Slide 27: International Interactive Segment Reporting

    INTERNATIONAL INTERACTIVE SEGMENT REPORTING GBP £ 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 UK 90,894 106,516 109,298 116,538 118,512 118,760 118,825 110,358 Asia 43,259 55,612 59,909 59,499 62,775 65,198 65,697 64,363 ROW 18,044 18,657 17,400 18,475 13,026 12,955 13,144 11,748 Total Revenues 152,197

  28. Slide 28: Non GAAP Reconciliation

    NON GAAP RECONCILIATION Quarter Ended December 31, Year Ended December 31, (in thousands, except percentages) 2021 2020 2021 2020 Revenue $ 547,665 $ 118,096 $ 1,322,443 $ 372,792 Net (loss) income $ (115,289) $ 20,223 $ (71,799) $ (5,487) Interest expense, net of interest income 45,045 19,245 117,9

  29. Slide 29: Non GAAP Reconciliation – Ex Atlantic City

    NON GAAP RECONCILIATION – EX ATLANTIC CITY (in thousands, except percentages) Quarter Ended December 31, 2021 Consolidated Excluding Casinos & Resorts Bally's Atlantic City Bally's Atlantic City Revenue $ 277,837 $ 30,612 $ 247,225 Net income (loss) $ 20,829 $ (2,070) $ 22,899 Interest expense, net

  30. Slide 30: Thank You

    TiN YOU THANK \/0U) TAIN YOU THANK VOU TiN YOU THANK \/0U) GAIN \ YOU

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