Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (August 2021)
28 slides from Inspired Entertainment's investor presentation, Aug 24, 2021
Slide 1: Investor Presentation August 2021
~~, INVESTOR PRESENTATION INSPIRED August 2021 ESSENTIAL ENTERTAINMENT
Slide 2: Safe Harbor / Non-GAAP Financial Disclosures
Safe Harbor / Non-GAAP Financial Disclosures Forward-Looking Statements ‘This presentaton includes foraréookng statements wthin the meaning ofthe Private SecritesLitgation Reform Actf 1888. These forward-looking statements include, but arent lite to, statements regarding our business satepy plans an
Slide 3: Proven and Experienced Management Team
Proven and Experienced Management Team 5 Lorne Weil Brooks Pierce Danial Sivers Stewart Baker Carys Damon a Executive Choirman President and Chiat Executive Vow President Executive Vice President Exocutve Vice President Benue Operating Officer and Chief Strategy Officer and Chief Financial Oficer «G
Slide 4: Highlights
Highlights of) A leading omni-channel 82B provider of Gaming, Leisure, Virtual Sports and Interactive content globally i momentum in North America leading presence in the UK Greece and italy with sign ‘© Combination of strong te 80% recurring revenue business! nology and top-performing cont €2)) Sig
Slide 5: Key Drivers in Inspired Businesses
Key Drivers in Inspired Businesses %6 OF 2020 / 2021 REVENUE Regulated Gaming Globally KEY BUSINESS ifting Share Rapid Growth of Legalized DRIVERS from Fewer Casinos to Many Sports Betting and Lottery “Distributed” Venues <4 INSPIRED NTAPPED POTENTIAL IN NORTH AMERICA
Slide 6: Reopening Has Demonstrated Business Resilience
Reopening Has Demonstrated Business Resilience Recent Business Update e Constraints on betting shops, pubs and holiday parks in England were lifted on July 19, 2021 following COVID-19-related restrictions associated with the staged reopening of operations during Q2 2021 © Inspired returned to growth
Slide 7: Recent Key Highlights
Recent Key Highlights Gaming Emerging North American VLT business + Enty nto Ilinois VLT market with 540 cabinets sold through 02 2021 —Inspired cabinets have consistently outperformed for Ilinos trial customers = Encouraged by game performance in 100 VLTs that have been placed with Western Canada L
Slide 8: Substantial Recurring Revenue Supported by Long-Term Participation-Based Contracts
Substantial Recurring Revenue Supported by Long-Term Participation-Based Contracts 7H62) Gaming Ln Large installed base \ mK : val Participation-driven model Virtual 'S32MM val Immediate revenue generation once retail Sports $158MM venues reopen Inspired FY2020 Recurring Revenue!) Inspired Products
Slide 9: Highly and Increasingly More Diversified Business
Highly and Increasingly More Diversified Business 2018 Q2 2021 End User Revenue Composition Tops Customers scale and the Company
Slide 10: Significant Momentum in Online
Significant Momentum in Online Online revenues between Online Virtuals and Interactive nearly doubled between January 2020 and June 2021 wom ‘Sigad dealt prove onina casi gomas to Lato-Ouabec anenest sractvecontant wth Letom, Nowa LAL and Shanska Spal LOTTOMATICA novibet (sen azo Launched rte ‘easin
Slide 11: Gaming Segment Overview
GAMING SEGMENT OVERVIEW Gaming growth shifting from large casinos to many distributed venues Inspired is a leader in server based gaming and provides content on a distributed basis, allowing access to a wide footprint through internet and proprietary networks ~32,000 machines live and top games in k
Slide 12: Well Positioned for North America Route Markets
Well Positioned for North America Route Markets e Inspired delivered its first Valor™ terminals in Illinois in Couletiva nels Valor Larmpals:Sold Q4 2019 — 540 Valor terminals sold in Illinois since launching in Q4 2019 540 120 469 — Nearly every major Illinois operator trialed Valor and all ‘0 331
Slide 13: Virtual Sports Segment Overview
VIRTUAL SPORTS SEGMENT OVERVIEW e Pioneer and a world leader of Ultra-HD games that create an always-on sports wagering experience — Largest portfolio, including basketball, football, harse racing and soccer — Continual stream of fast-paced action, ultra-realistic player simulations and a tremendous
Slide 14: Interactive Segment Overview
INTERACTIVE SEGMENT OVERVIEW e Online gaming operators use our top-performing game titles online and on mobile devices worldwide e Interactive Revenue and Adjusted EBITDA grew from $4.7 million and $0.1 million in 2019 to $18.8 million and $11.3 million LTM 2021, respectively, with incremental margi
Slide 15: ‘4 an ak
ae ‘4 an ak jorms transition to drive improved economics y removed to chan r with multi HINES 2 Multiple games per machine Manual updates, Lower daly cash box + Download games remotely ———» Rafrash content frequently Higher deity cash box Seat nas oc ater ‘Ablty to go cashless in future <4 ¥ INSPIRE
Slide 16: Established Presence Across Multiple Product Verticals
Established Presence Across Multiple Product Verticals"! 13,700+ UK LBO Installed Base 8,900+ Greece VLT Installed Base Strong position across UK LBOs, pubs, holiday parks and MSAs in addition to Greek VLTs and Italian Virtual Sports 8,100+ UK Pubs Installed Base #1 SBG Game in Greece by Customer Wi
Slide 17: Proven Track-Record of Strong Content Development
Proven Track-Record of Strong Content Development Three-time Virtual Sports supplier of the year at ICE and by EGR Virtual Sports Gaming / Interactive Content Gaming Content & Hardware Development — — Valor Prismatic Prismatic Community Ro UPErenOTrnUne 7 100+ Different Virtual Sports Games Titles D
Slide 18: Longstanding Customer Relationships
Longstanding Customer Relationships Representative Customers Under Contract (Length of Relationship] wan wetherspoon = & Flutter 15+ years 15+ years 20+ years 15+ years =ntain bet265 — @aevrne 15+ years 15+ years Thyears 12 years ¥$<Sisal @LottomaTica swarTecH FBcodere “opap Tlyears Q years 12 years
Slide 19: Future Growth Drivers
Future Growth Drivers eNorth American VLTs elnteractive eVirtual Sports eiLottery 4, INSPIRED
Slide 20: Market Capitalization
Market Capitalization Capitalization Table (unaudited) Actual (US$ in millions, except per share data) 6/30/24 Cash $24.5 Senior Bank Debt“ 324.7 Accrued Interest, Finance Lease Liabilities and Pension Liability” 7.9 Total Debt $332.6 Net Debt $308.1 Diluted Shares Outstanding® (in millions) 24.326
Slide 21: Appendix
y a - k ” wv INSPIRED » Appendix
Slide 22: Segment Performance 2Q 2021
Segment Performance 2Q 2021 ‘Three Months Ended June 30, 2021 Unaudited, ($ in millions) Gaming snare Interactive Leisure Corporate Total Revenue: _ _ Service S$ 128 § 82 $ 58$ 107 $ =sms5) Product 34 = 06 = 40 Total revenue 162 a2 Ey 713 = a3 Cost of sales, excluding depreciation and amortization:
Slide 23: Segment Performance FY2020
Segment Performance FY2020 ‘Twelve Months Ended December 31, 2020 Audited, ($ in mitions) Gaming ial interactive Leisure Corporate Total Revenue: service S22 $ 24 S$ 1335 408 $ SET Product 183 = — 28 = 214 Total revenue 705 ia ts as = Teas Cost of sales, excluding depreciation and amortization Cost
Slide 24: Segment Performance FY2019
Segment Performance FY2019 ‘Twelve Months Ended December 31, 2019 Virtual Audited, ($ in millions) Gaming Sports Interactive. Leisure Corporate Total Revenue Senvice $ me $ 34 8 478 26 $ — $ 195 Product 177 = = 42 = 439 Total revenue 315 a a7 2s = 734 Cost of sales, excluding depreciation and amorti
Slide 25: Non-GAAP Reconciliation: 2Q 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: 2Q 2021 Adjusted EBITDA by Segment Virtual Unaudited, (Sin mitions) Gaming Sports Interactive, _Leisure_ Corporate, _Total Net gain (loss) s (27) $ 42 $ 26 $ (44) $ (43.5)$ (43.8) ttems Relating to Discontinued Activities Pension charges = = = = 02 02 items outside the norma
Slide 26: Non-GAAP Reconciliation: FY2020 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY2020 Adjusted EBITDA by Segment Virtual Unaudited, ($ in mitions) Gaming _Sports_ Interactive, Leisure Corporate _Total Net gain (loss) Ss 255 10S 495 (158 S$ (208 (24) Items Relating to Discontinued Activities, Pension charges = = = = 06 06 Items outside the normal course
Slide 27: Non-GAAP Reconciliation: FY2019 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY2019 Adjusted EBITDA by Segment Virtual ‘Unaudited, ($ in mitions) Gaming _Sports_ Interactive, _Leisure_ Corporate, __Total Net gain (loss) $ 035 265 G1) S 235 (22)8 (41.4) Items Relating to Discontinued Activities Pension charges = = = = O68 06 Items outside the normal c
Slide 28: Inspired Essential Entertainment
INSPIRED ESSENTIAL ENTERTAINMENT
Inspired Entertainment — Investor Presentation (August 2021) on 6ix