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Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025 — International Game Technology — Q1 2020 Earnings Presentation
28 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's earnings presentation, May 18, 2020
Slide 1: 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 2: Agenda
Marco Sala, CEO Strategic Update 1 Max Chiara, CFO Q1’20 Results 2 Q&A 3 3 Agenda
Slide 3: Our Thoughts Are with All Those Affected by COVID-19
Our Thoughts Are with All Those Affected by COVID-19 4
Slide 4: Q1'20: After a Strong Start, COVID-19 Led to a Rapid Shift in Focus
Q1’20: After a Strong Start, COVID-19 Led to a Rapid Shift in Focus 5 Protect Employees Ensure Business Continuity Cost-Saving Initiatives Liquidity/Cash Preservation Engage with Customers Communicate local government guidelines to ensure safety Workforce management Regular employee communications B
Slide 5: Three Phases Impacting IGT's Main Markets
Three Phases Impacting IGT’s Main Markets 6 Protect people’s health and safety Stay-at-home mandates Manage the business in lockdown Outbreak/Health Emergency Execute gradual, staggered re-opening of business activity Social distancing measures Focus on prudent scaling of costs Containment/Gradual R
Slide 6: We Took Immediate Action with Clear Priorities & Robust Continuity Plans
We Took Immediate Action with Clear Priorities & Robust Continuity Plans 7 Created a cross-functional, global COVID-19 crisis management team Employee safety top of mind on each initiative Work-from-home implemented worldwide by mid-March Customer service levels have all been maintained Temporary co
Slide 7: Latest Market Insights & Implications for IGT: Gaming
Latest Market Insights & Implications for IGT: Gaming 8 Full global casino & gaming hall lockdown for most of Q2; re-opening no earlier than late Q2/early Q3 Social distancing the new norm Macro impact on discretionary spending and player behavior not known Destination markets likely slower to recov
Slide 8: Latest Market Insights & Implications for IGT: Lottery
Latest Market Insights & Implications for IGT: Lottery 9 Stay-at-home restrictions leading to reduced traffic to POS Shutdown of certain games in some markets (Italy, Spain) Market Insights Implications for IGT Significant impact on Italy lottery wagers; trends vary greatly in ROW Italy Lotto games
Slide 9: Where We Stand Today
Where We Stand Today 10 Legend (% Y/Y) (51%) – (100%) (21%) – (50%) (20%) – 0% The near-term outlook for IGT’s main markets remains depressed Management is focused on a thorough, zero-based cost assessment to identify structural and contingent cost reductions, re-prioritization of capital investment
Slide 10: Assessing the Future
Assessing the Future 11 Reducing near-term cash costs to reflect customer demand trends; aiming for longer-term cost-transformation initiatives Opportunity to leverage key areas of investment (digital, systems, electronic table games) and market leadership as customers seek innovative solutions for
Slide 11: IGT's Fitness to Compete is Stronger in the Recovery
IGT’s Fitness to Compete is Stronger in the Recovery 12 Adapting quickly while positioning to win in the post-COVID-19 environment Near-term cost actions reflect current market demand trends Structural cost initiatives/efficiencies improve competitiveness in post-COVID-19 world Leverage investment i
Slide 12: First Quarter 2020 Results
First Quarter 2020 Results 13
Slide 13: Q1'20 Financial Highlights
-18% Operating Income (Loss) Diluted EPS/ Adj. Diluted EPS Note: Adjusted results remove impact of purchase price amortization, impairment charges, restructuring expense and transaction expense (see appendix for details) EUR/USD FX daily average: 1.14 in Q1’19; 1.10 in Q1’20 $ M Revenue 14 Adjusted
Slide 14: Q1'20 North America Gaming & Interactive Highlights
Revenue Key Performance Indicators Service revenue impacted by casino closures and multi-year poker contract in PY Product sales reflects lower unit shipments, partly offset by benefit of multi-year strategic agreement; systems revenue flat on Advantage install at Isleta Resort & Casino Operating in
Slide 15: Q1'20 North America Lottery Highlights
Revenue Key Performance Indicators $ M except where noted otherwise 16 Mobility restrictions due to COVID-19 affected lottery sales in March LMA reflects lower jackpot activity over last three quarters and reduced play levels for all games due to COVID-19 1.6% same-store revenue growth for instant t
Slide 16: Q1'20 International Highlights
Revenue Key Performance Indicators $ M except where noted otherwise 17 Product sales reflects software license revenue as part of Czech Republic long-term lottery contract extension and Italy AWP upgrades, partially offset by lower unit shipments of gaming machines Gaming service revenue down on cas
Slide 17: Q1'20 Italy Highlights
Revenue Key Performance Indicators $ M except where noted otherwise 18 Lottery wager trends reflect strict COVID-19 mobility restrictions Machine gaming affected by closure of gaming halls, higher taxes, and impact of age-verification readers; Interactive wagers rose 20% Sports Betting & Other up on
Slide 18: Swift Actions Deliver $500M in 2020 Cost Savings/Avoidance
160 Swift Actions Deliver $500M in 2020 Cost Savings/Avoidance 19 ~$235M ~$185M CapEx Actions Over one-third reduction from original Q2-Q4 maintenance CapEx plan Cuts deepest for Gaming activities Lottery CapEx mostly contractual Operating Expense Actions ~20% reduction in fixed/ discretionary costs
Slide 19: Net Debt and Leverage Profile
$ M except where noted otherwise 20 $212 million in net debt reduction since 12/31/19 as reported; $111 million at constant currency Leverage (net debt/LTM EBITDA) of 4.47x compared to 4.31x at 12/31/19 and 4.49x at 3/31/19 Net Debt and Leverage Profile Net Debt/LTM EBITDA 4.49x 4.31x 4.47x $157 net
Slide 20: Ample Liquidity, No Significant Near-Term Maturities
Ample Liquidity, No Significant Near-Term Maturities 21 $1.5 billion in cash as of 3/31/20; total available liquidity is $2.2 billion $992 million drawn on revolving credit facilities; $743 million in additional borrowing capacity Working capital initiatives focused on A/R collections and inventory/
Slide 21: Successfully Amended Bank Loan Facilities
Successfully Amended Bank Loan Facilities 22 Obtained a sound degree of flexibility to allow the Company to operate safely during the heights of the pandemic Financial covenant restructuring Leverage ratio and interest coverage ratio do not apply through Q2’21 Minimum liquidity covenant introduced d
Slide 22: Key Takeaways
Key Takeaways 23 Resilient business model Large, geo-diversified revenue base Lotteries, Italy historically acyclical Strong liquidity position $2.2 billion in total availability Strict working capital discipline Balanced capital allocation philosophy Protecting credit rating a key focus Returning c
Slide 23: Key Takeaways
Key Takeaways @ Resilient business model + Large, geo-diversified revenue base + Lotteries, Italy historically acyclical el Strong liquidity position + $2.2 billion in total availability + Strict working capital discipline Positioned to navigate new normal + $500 million in 2020 cost savings + Innov
Slide 24: Appendix
Appendix 25
Slide 25: Q1'20 Income Statement (As Reported)
$ M except where noted otherwise 26 Q1’20 Income Statement (As Reported) Income Statement Q1'20 Q1'19 % Change Service revenue 783 991 -21% Product sales 157 154 2% Total Revenue 940 1,145 -18% Adjusted EBITDA 309 417 -26% Operating (Loss) Income (197) 178 -212% Interest expense, net (101) (103) For
Slide 26: Q1'20 Cash Flow Statement
$ M except where noted otherwise 27 Q1’20 Cash Flow Statement $157 million in operating cash flow $58 million of free cash flow $1,098 million in net debt proceeds $432 million redemption of 4.75% senior secured Euro notes at maturity $41 million returned to shareholders Cash Flow Q1'20 Net Cash Flo
Slide 27: Q1'20 Reconciliation of Non-GAAP Measures
$ M except where noted otherwise 28 Q1’20 Reconciliation of Non-GAAP Measures As Reported Q1'20 Q1'19 Net income (loss) (234) 80 Provision for income taxes 3 53 Interest expense, net 101 103 Foreign exchange loss (gain), net (70) (58) Other non-operating expense, net 3 - Operating income (197) 178 G
Slide 28: Q1'20 Reconciliation of Non-GAAP Measures
Q1’20 Reconciliation of Non-GAAP Measures As Rep 212 Netincome (loss) (234) 80 Provision for income taxes 3 53 Interest expense, not 101 403 Foreign exchange fos (gain). net 70) (68) Other non operating expense, net 3 Operating income 97) 178 ‘Goodwillimpairment 296 - Depreciation 98 108 ‘Amortizati
International Game Technology — Q1 2020 Earnings Presentation on 6ix