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 — Brightstar Lottery — Q1 2024 Earnings Presentation
36 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's earnings presentation, May 14, 2024
Slide 1: Q1 2024 Results, Period ended March 31, 2024
POWER ILGIOCO DEL me. 2024 1" QUARTER RESULTS Period ended March 31, 2024
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
Slide 3: Strategic Update
STRATEG UPDATE | (UAYGRANDE — IOCCASIONE ag |
Slide 4: Q1'24 Results Exceed Expectations
Q1’24 Results Exceed Expectations Better-than-expected revenue of $1.07B primarily from strong Global Lottery and iGaming performance 24% operating income margin, ~400 bps higher than expected Global Lottery SSS outperformance, inclusive of multi-state jackpot activity Cadence of Separation & divest
Slide 5: Global Lottery Growth Driven by Game Innovation and Hardware/Software Sales
Global Lottery Growth Driven by Game Innovation and Hardware/Software Sales Mid-single-digit revenue growth drives 6th consecutive quarter of Y/Y margin expansion Global SSS in line with PY 4.4% increase in Italy driven by game innovation in instants and draw games North America & Rest of World down
Slide 6: Consistent Global Lottery Growth Fueled by Compelling Product Strategies
Consistent Global Lottery Growth Fueled by Compelling Product Strategies New Games Increased Play Frequency Multichannel Focus Q2’23: 2nd Draw Launch Q3’23: 4th Draw Launch Italy Q4’23: Launch iLottery Retail North America & ROW Q3’23: Georgia Quick Win Launch
Slide 7: Continued Momentum in Gaming & Digital
Continued Momentum in Gaming & Digital Y/Y operating margin expands for 12th consecutive quarter Global installed base grows to 54,000+ units U.S. & Canada premium units increase for 7th consecutive quarter Mystery of the Lamp named “Top Performing New Premium Game”* Record U.S. & Canada ASP achieve
Slide 8: Focused R&D Investment, Process Improvements Driving Gaming & Digital Progress
Focused R&D Investment, Process Improvements Driving Significant Gaming & Digital Progress Premium Game Success Stories Upcoming Releases • 4 of top 25 New Non-WAP Premium Games • 11 of top 25 Top Indexing WAP Games, including #1 and #3 spots • Mystery of the Lamp & Magic Treasures in top 10 Indexin
Slide 9: Strong Q1'24 Results Drive Conviction in Achieving Upgraded FY'24 Outlook
Strong Q1’24 Results Drive Conviction in Achieving Upgraded FY’24 Outlook Delivered record Expect broad- Continued progress operating income, based KPI on separation and excluding Separation momentum across merger transaction & divestiture costs segments in FY’24 for Gaming & Digital 9
Slide 10: 10
10
Slide 11: Q1'24 Results Provide Solid Start to FY'24
Q1’24 Results Provide Solid Start to FY’24 Quarter Ended Constant March 31, Y/Y Currency 2024 2023 Change Change* (Amounts in $ millions, unless otherwise noted) Revenue 1,067 1,060 1% 1% Operating income(1) 256 255 - - Operating income margin 24.0% 24.1% (.1)pp - Operating income excluding Separati
Slide 12: Robust Q1'24 Global Lottery Revenue & Profit Growth
Robust Q1’24 Global Lottery Revenue & Profit Growth Revenue rises 6% on higher product sales and Revenue continued strength in Italy $661M Operating Income Product sales revenue up 90+% $258M GameTouch 28 self-service terminal sales in Ontario Aurora central system software upgrades in Singapore and
Slide 13: Continued Improvement in Gaming & Digital Profit Margin
Continued Improvement in Gaming & Digital Profit Margin; Revenue Reflects Timing of Product Sales As expected, Q1’24 revenue down 7% Terminal service revenue up 2% Y/Y Revenue 6% increase in global installed base more than offsets lower yields due to mix $406M Sequentially, Rest of World installed b
Slide 14: Q1'24 Cash Flows Impacted by Working Capital Timing; Ample Liquidity
Q1’24 Cash Flows Impacted by Working Capital Timing; Ample Liquidity & Manageable Near-Term Debt Maturities CFO reflects negative impact from timing of Cash Flows income tax payments and other working capital items; FY’24 expectations reaffirmed Net debt leverage* of 2.9x matches lowest $120M ~$90M
Slide 15: Upgrading FY'24 Outlook on Strong Q1'24 Results
Upgrading FY’24 Outlook on Strong Q1’24 Results Previous Upgraded FY’24 Outlook FY’24 Outlook Key Outlook Assumptions Revenue $4.3 - $4.4B ~$4.4B FY’24: • Global Lottery SSS flat due to robust jackpot activity in PY; excluding Operating Income Margin 20% - 21% ~21% jackpots, SSS up low-single-digits
Slide 16: IGT / Everi Transaction Execution & RemainCo Considerations
IGT / EVERI TRANSACTION EXECUTION & REMAINCO CONSIDERATIONS
Slide 17: Path to Close Transaction
Path to Close Transaction Content / Counterparties Implications • Pro forma MergeCo combined historical results Form 10/S-4 • SpinCo carve-out financial statements for FY’21 – FY’23 and Q1’24 • Share repurchases restricted until after the filings and subject to Registration • Facts & circumstances l
Slide 18: Deal Syndication/Financing Commitments
Deal Syndication/Financing Commitments Revolver Financial Commitments # of Banks (incremental to financial commitments) Original Commitments $3.7B $500M 2 Current $3.7B $750M 9 Commitments Strong support for transaction from banks, including an upsized revolver 18
Slide 19: Separation & Divestiture Expenses
Separation & Divestiture Expenses (excluding tax leakage & cash conveyance) ~$200M in Separation & divestiture expenses are aligned with other transactions in the same industry • Pre-closing: ~$130M (~$20M in Q1’24; ~$110M from Q2’24 – Q4’24) • Upon closing: ~$70M 65% of cost 35% of cost Technical C
Slide 20: Taxable Nature of Transaction
Taxable Nature of Transaction IGT PLC IGT IGTU.S. Shareholders U.S. Shareholders • No tax for IGT PLC on distribution due to participation exemption in the U.K. • The distribution is expected to be taxable for federal income tax purposes. Additional state tax may be imposed on the portion of the dis
Slide 21: RemainCo Pro Forma Net Debt Leverage Reconciliation
RemainCo Pro Forma Net Debt Leverage Reconciliation IGT PLC 2023 Actuals(1) Closing Proceeds to RemainCo 2023 RemainCo Pro Forma Net Debt 5.1 Gross Proceeds 2.6 Net Debt 2.9 Total Transaction Costs(2) (0.2) Net Debt Leverage 2.9x Other 0.1 Tax Leakage (up to) (0.1) Adjusted Net Debt 3.0 AEBITDA 1.8
Slide 22: 22
22
Slide 23: Appendix
APPENDIX
Slide 24: Q1'24 Revenue & Profit Profile
Q1’24 Revenue & Profit Profile Revenue by Segment Revenue by Type Revenue by Geography 38% 18% 14% 62% 24% 62% 82% Global Lottery Gaming & Digital Service Product Sales U.S. & Canada Italy Rest of world Segment-level Segment-level Profit Margins Operating Income(1) Adjusted EBITDA(1) 54% 39% 24% 31%
Slide 25: U.S. and Italy Lottery Markets Demonstrate Resilience During Recessions
U.S. and Italy Lottery Markets Historically Demonstrate Resilience During Periods of Recession U.S. Lottery Industry Sales ($B) IGT Italy Lottery Sales (€B) March 2001– Sep 2001 March 2008–June 2009 March 2020– June 2020 June 2001 - Dec 2001June 2003 – Sep 2003 June 2008 - June 2009 Sep 2011- March
Slide 26: U.S. Gaming GGR Reasonably Resilient in Prior Recession Periods
U.S. Gaming GGR Reasonably Resilient in Prior Recession Periods The U.S. represents ~70% of IGT’s Global Gaming segment revenue ~80% of U.S. revenue generated in regional markets, ~45% from Tribal customers U.S. Commercial Gaming GGR ($B) U.S. Tribal Gaming GGR ($B) March 2008–June 2009 March 2020–J
Slide 27: Q1'24 Select Performance and KPI Data: Global Lottery
Q1'24 Select Performance and KPI Data Constant Sequential Currency Change as GLOBAL LOTTERY Q1'24 Q1'23 Y/Y Change Change Q4'23 Reported Revenue Service Operating and facilities management contracts 653 637 2% 2% 624 5% Upfront license fee amortization (47) (47) (1)% —% (47) —% Operating and facilit
Slide 28: Q1'24 Select Performance and KPI Data: Gaming & Digital
Q1'24 Select Performance and KPI Data Constant Sequential Currency Change as GAMING & DIGITAL Q1'24 Q1'23 Y/Y Change Change Q4'23 Reported Revenue Service Terminal 131 129 2% 2% 127 4% iGaming 48 43 10% 10% 47 1% Systems, software, and other 75 71 5% 5% 73 2% Total service revenue 253 243 4% 4% 247
Slide 29: Q1'24 Select Performance and KPI Data: Gaming & Digital (Continued)
Q1'24 Select Performance and KPI Data GAMING & DIGITAL (Continued) Q1'24 Q1'23 Y/Y Change Q4'23 Yields (by geography)(1), in absolute $ US & Canada $41.17 $42.36 (3)% $41.28 Rest of world $7.13 $7.41 (4)% $7.02 Total yields $28.51 $30.13 (5)% $28.71 Global machine units sold New/expansion 203 1,012
Slide 30: Q1'24 Select Performance and KPI Data: Consolidated
Q1'24 Select Performance and KPI Data Constant Sequential Currency Change as CONSOLIDATED Q1'24 Q1'23 Y/Y Change Change Q4'23 Reported Revenue (by geography) US & Canada 660 666 (1)% (1)% 707 (7)% Italy 258 243 6% 6% 244 5% Rest of world 150 151 (1)% (1)% 178 (16)% Total revenue 1,067 1,060 1% 1% 1,
Slide 31: Q1'24 Summarized Income Statement
Q1'24 Summarized Income Statement For the three months ended March 31, Constant Currency 2024 2023 Y/Y Change Change Service revenue 872 846 3% 3% Product sales 195 215 (9)% (9)% Total revenue 1,067 1,060 1% 1% Total operating expenses 812 805 1% 1% Operating income 256 255 —% —% Interest expense, n
Slide 32: Summarized Cash Flow Statement
Summarized Cash Flow Statement For the three months ended March 31, 2024 2023 Net cash provided by operating activities 120 311 Capital expenditures (84) (94) Payments on license obligations (7) (1) Free cash flow 29 216 Debt proceeds/(repayments), net (81) (17) Shareholder dividends paid — (40) Min
Slide 33: Reconciliations of Non-GAAP Measures - Q1'24
Reconciliations of Non-GAAP Measures - Q1'24 For the three months ended March 31, 2024 Business Global Gaming & Segments Corporate Total Lottery Digital Total and Other IGT PLC Net income 128 Provision for income taxes 69 Interest expense, net 72 Foreign exchange gain, net (15) Other non-operating e
Slide 34: Reconciliations of Non-GAAP Measures - Q1'24
Reconciliations of Non-GAAP Measures - Q1'24 For the three months ended March 31, 2024 Pre-Tax Impact Tax Impact (1)(2) Net Impact Reported EPS attributable to IGT PLC - diluted 0.40 Adjustments: Foreign exchange gain, net (0.09) 0.02 (0.11) Currency conversion impacts of hyper-inflationary economie
Slide 35: Reconciliations of Non-GAAP Measures - Q1'23
Reconciliations of Non-GAAP Measures - Q1'23 For the three months ended March 31, 2023 Business Global Gaming & Segments Corporate Total Lottery Digital Total and Other IGT PLC Net income 67 Provision for income taxes 87 Interest expense, net 70 Foreign exchange loss, net 26 Other non-operating expe
Slide 36: Reconciliations of Non-GAAP Measures - Q1'23
Reconciliations of Non-GAAP Measures - Q1'23 For the three months ended March 31, 2023 Pre-Tax Impact Tax Impact (1)(2) Net Impact Reported EPS attributable to IGT PLC - diluted 0.11 Adjustments: Foreign exchange loss, net 0.12 (0.02) 0.14 Currency conversion impacts of hyper-inflationary economies