20 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's earnings presentation, Jul 28, 2016
Slide 1: Agenda
7/28/2016 2 Agenda Marco Sala, CEO, International Game Technology PLC Strategic Update 1 Alberto Fornaro, CFO, International Game Technology PLC Q2’16 Results 2 Q&A 3
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
7/28/2016 3 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 other matters. These statements may d
Slide 3: Comparability of Results
7/28/2016 4 Comparability of Results All figures presented in this presentation are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures through non-GAAP financial measures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign excha
Slide 4: Comparability of Results
” Comparability of Results All figures presented in this presentation are prepared under U.S. GAAP, unless noted otherwise. ‘Adjusted figures through non-GAAP financial measures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and
Slide 5: Strategic Update
7/28/2016 6 Strategic Update Continued profit expansion supported by service revenue growth, especially at Italy and North America Lottery segments Strong global Lottery performance 6% same-store revenue growth ex-Italy 19% increase in Italy Lotto wagers reflects double-digit increase for 10eLotto/N
Slide 6: 2016 Second Quarter Financial Results
2016 SECOND QUARTER FINANCIAL RESULTS
Slide 7: Q2'16 Financial Highlights
7/28/2016 8 Revenue Adjusted Operating Income Q2’16 Financial Highlights Adjusted Diluted EPS $ M except EPS +1% +4% +2% Adjusted EBITDA Note: As adjusted results remove impact of purchase accounting, impairment charges, restructuring expense and transaction expense (see appendix for details) Note:
Slide 8: Q2'16 Revenue & Operating Income
Revenue 7/28/2016 9 Q2’16 Revenue & Operating Income $ M Lottery driven by strong same-store revenue growth (Italy, North America, Latin America) Gaming service revenue up primarily on increased software contribution, partially offset by a lower global installed base Challenging product sales compar
Slide 9: Q2'16 North America Gaming & Interactive Highlights
7/28/2016 10 Developments Q2’16 North America Gaming & Interactive Highlights Revenue $ M Key Performance Indicators Gaming service revenue up on increased contribution from software, partially offset by lower installed base Aladdin and Plants vs. ZombiesTM among top performing games; rollout of hig
Slide 10: Q2'16 North America Lottery Highlights
7/28/2016 11 7.3% same-store revenue growth fueled by continued strength in Jackpot games (Mega Millions, Powerball) Many of the largest lotteries were among the best performers: California, New Jersey, North Carolina, and Texas Consumer preference for high price point tickets an important driver of
Slide 11: Q2'16 International Highlights
7/28/2016 12 Lottery same-store revenue up on strength in Latin America and Eastern Europe, partially offset by weak draw-based games in the UK; total lottery revenue benefited from a higher effective rate in the period Gaming service revenue unchanged at constant currency as stronger EMEA performan
Slide 12: Q2'16 Italy Highlights
Developments 7/28/2016 13 Q2’16 Italy Highlights $ M Revenue Key Performance Indicators Strong Lottery and resilient Gaming support continued growth in sales and profits 19% Lotto wager growth achieved on top of double-digit increase in Q2’15, supported by 13% 10eLotto growth and a significant Late
Slide 13: Net Debt & Leverage
7/28/2016 14 $ M Net Debt & Leverage Excluding the impact of FX, net debt essentially flat with year-end 2015 level despite Lotto upfront concession payment Leverage ratio improved vs. Q4’15 and stable when compared to Q1’16 Net Debt/LTM EBITDA 4.52x 4.43x Lotto (150) S&W and Other 62
Slide 14: H1'16 Cash Flow Statement
7/28/2016 15 H1’16 Cash Flow Statement $ M Strong Operating Cash Flow in Q2’16 - Includes approximately $256 million in cash interest paid during the period - Cash interest payments are concentrated in the first and third quarters CapEx reflective of normalized run-rate Net Lotto upfront concession
Slide 15: 2016 Financial Outlook
7/28/2016 16 2016 Financial Outlook Adjusted EBITDA of $1,740-$1,790 million First half benefited from significant lottery wager growth (Powerball and Italy Late Numbers), one-offs (Italy VAT credit), and timing of marketing expenses Second half considerations include Italy seasonality and normalize
Slide 16: 2016 Financial Outlook
»* 2016 Financial Outlook Adjusted EBITDA of $1,740-$1,790 million + First half benefited from significant lottery wager growth (Powerball and Italy Late Numbers), one-offs (Italy VAT credit), and timing of marketing expenses + Second half considerations include Italy seasonality and normalized lott
Slide 17: Q2'16 Income Statement (As Reported)
7/28/2016 17 Q2’16 Income Statement (As Reported) $ M % Constant Currency Income Statement Q2'16 Q2'15 Change Q2'16 % Chg. Service Revenue 1,089 1,034 5% 1,096 6% Product Sales 196 240 -18% 197 -18% Total Revenue 1,285 1,274 1% 1,293 1% Adjusted EBITDA 443 427 4% 442 4% Operating Income 171 116 48%
Slide 18: Q2'16 Reconciliation of Non-GAAP Measures
7/28/2016 18 Q2’16 Reconciliation of Non-GAAP Measures $ M Adjustments Q2'16 As Purchase Foreign Impairment/ Q2'16 As Reported Acctg. Exchange Restructure Adjusted Total Revenue 1,285 1 - - 1,286 Cost of Services 638 (45) - - 593 Cost of Sales 144 (29) - - 115 SG&A 239 (35) - - 204 R&D 84 - - - 84 R
Slide 19: Q2'16 Reconciliation of Non-GAAP Measures
7/28/2016 19 Q2’16 Reconciliation of Non-GAAP Measures $ M As Reported Q2'16 Q2'15 Net Income (Loss) 83 (112) Provision for Income Taxes 60 11 Non-Operating Expenses 28 217 Depreciation 100 93 Amortization 128 119 Impairment 2 - Amortization of Upfront Payments to Customers 28 27 Transaction Expense
Slide 20: Q2'16 Reconciliation of Non-GAAP Measures
a —<ar Q2’16 Reconciliation of Non-GAAP Measures [Net income (Loss) Provision for income Taxes. "Non-Operating Expenses Depreciation ‘Amortization Impairment ‘Amortization of Upront Payments to Customers ‘Transaction Expense, Net Restructuring Expense [Non-Cash Purchase Accounting (Excluding D&A) ‘S