Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (March 2021)
30 slides from Inspired Entertainment's investor presentation, Mar 11, 2021
Slide 1: New Segment Reporting: Quarterly Reclassification
1 NEW SEGMENT REPORTING Quarterly Reclassification March 11, 2021
Slide 2: Safe Harbor / Non-GAAP Financial Disclosures
Safe Harbor / Non - GAAP Financial Disclosures Forward - Looking Statements This presentation includes forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . These forward - looking statements include, but are not limited to, statements regarding ou
Slide 3: New Segment Reporting from October 1, 2020
New Segment Reporting from October 1, 2020 • T he Company has completed the process of changing its internal structure, which has been ongoing since the NTG Acquisition, and as a result has changed the composition of its operating segments . • The previous segments were : Gaming, Virtual Sports and
Slide 4: New Segments
New Segments Retail and Online Virtual Sports Slot and table game offerings from our Gaming segment as well as interactive - only content via our remote gaming servers Digital and analog gaming and amusement machines located in UK pubs, bowling alleys, motorway service areas, bingo halls and leisure
Slide 5: Quarterly Segment Revenue Breakdown
Quarterly Segment Revenue Breakdown Unaudited, $ in millions Impact from Reclassified As reported Reclassification Segments Gaming $ 25.0 8.2 $ 33.2 Gaming Virtual Sports 9.5 (1.0) 8.5 Virtual Sports - 2.1 2.1 Interactive Acq Businesses 32.9 (10.3) 22.6 Leisure Eliminations (1.0) 1.0 - Consolidated
Slide 6: Quarterly Revenue and Cost Breakdown
Quarterly Revenue and Cost Breakdown Unaudited, $ in millions Note: Q4 2020 Revenue, Costs and Operating Income were reported under the new method of segment reporting. Financials are not pro forma for the NTG acquisition. Exchange rate in the table is calculated by dividing the USD service re ven u
Slide 7: Quarterly Segment Operating Income Breakdown
Quarterly Segment Operating Income Breakdown Unaudited, $ in millions Impact from Reclassified As reported Reclassification Segments Gaming $ (0.1) $ (1.1) $ (1.2) Gaming Virtual Sports 4.9 0.1 5.0 Virtual Sports - 0.1 0.1 Interactive Acq Business (2.2) 1.2 (1.0) Leisure Eliminations (0.2) 0.2 - Cor
Slide 8: Quarterly Segment Adjusted EBITDA
Quarterly Segment Adjusted EBITDA Unaudited, $ in millions Reconciliation to US GAAP shown in appendix Note: The Company is introducing Adjusted EBITDA by segment. There is no change to the reported Total Adjusted EBITDA. Resul ts are not pro forma for the NTG acquisition. 8 Q4 2019 FY 2019 Q1 2020
Slide 9: Appendix
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Slide 10: Segment Performance – FY 2020
Segment Performance – FY 2020 Unaudited , ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Revenue: Service $ 92.2 $ 32.4 $ 13.3 $ 40.8 $ — $ 178.7 Product 18.3 — — 2.8 — 21.1 Total revenue 110.5 32.4 13.3 43.6 — 199.8 Cost of sales, excluding depreciation and amortization:
Slide 11: Segment Performance – Q4 2020
Segment Performance – Q4 2020 Unaudited , ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Revenue: Service $ 44.3 $ 8.7 $ 4.2 $ 7.7 $ — $ 64.9 Product 6.2 — — 0.6 — 6.8 Total revenue 50.5 8.7 4.2 8.3 — 71.7 Cost of sales, excluding depreciation and amortization: Cost of ser
Slide 12: Segment Performance – Q3 2020
Segment Performance – Q3 2020 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Revenue: Service $ 27.2 $ 8.3 $ 3.5 $ 16.6 $ — $ 55.6 Product 3.7 — — 0.8 — 4.5 Total revenue 30.9 8.3 3.5 17.4 — 60.1 Cost of sales, excluding depreciation and amortization: Cost of se
Slide 13: Segment Performance – Q2 2020
Segment Performance – Q2 2020 Unaudited , ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Revenue: Service $ 4.1 $ 7.6 $ 3.4 $ 0.2 $ — $ 15.3 Product 0.1 — — 0.2 — 0.3 Total revenue 4.2 7.6 3.4 0.4 — 15.6 Cost of sales, excluding depreciation and amortization: Cost of servi
Slide 14: Segment Performance – Q1 2020
Segment Performance – Q1 2020 Three Months Ended March 31, 2020 Unaudited , ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Revenue: Service $ 16.6 $ 7.8 $ 2.1 $ 16.3 $ — $ 42.8 Product 8.3 — — 1.2 — 9.5 Total revenue 24.9 7.8 2.1 17.5 — 52.3 Cost of sales, excluding deprec
Slide 15: Segment Performance – FY 2019
Segment Performance – FY 2019 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Revenue: Service $ 73.8 $ 33.4 $ 4.7 $ 22.6 $ — $ 134.5 Product 17.7 — — 1.2 — 18.9 Total revenue 91.5 33.4 4.7 23.8 — 153.4 Cost of sales, excluding depreciation and amortization: Cost
Slide 16: Segment Performance – Q4 2019
Segment Performance – Q4 2019 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Revenue: Service $ 21.9 $ 8.5 $ 2.1 $ 21.8 $ — $ 54.3 Product 11.3 — — 0.8 — 12.1 Total revenue 33.2 8.5 2.1 22.6 — 66.4 Cost of sales, excluding depreciation and amortization: Cost of
Slide 17: Non-GAAP Reconciliation: FY 2020 Adjusted EBITDA by Segment
Non - GAAP Reconciliation: FY 2020 Adjusted EBITDA by Segment Twelve Months Ended December 31, 2020 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Net gain (loss) $ 29.5 $ 21.0 $ 4.9 $ (15.8) $ (68.8 ) $ (29.2 ) Items Relating to Discontinued Activities Pension
Slide 18: Non-GAAP Reconciliation: Q4 2020 Adjusted EBITDA by Segment
Non - GAAP Reconciliation: Q4 2020 Adjusted EBITDA by Segment Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Net gain (loss) $ 28.3 $ 5.1 $ 1.4 $ (5.6 ) $ (16.8 ) $ 12.4 Items Relating to Discontinued Activities Pension charges — — — — 0.1 0.1 Items outside the
Slide 19: Non-GAAP Reconciliation: Q3 2020 Adjusted EBITDA by Segment
Non - GAAP Reconciliation: Q3 2020 Adjusted EBITDA by Segment Three Months Ended September 30, 2020 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Net gain (loss) $ 9.6 $ 5.7 $ 1.6 $ (2.1 ) $ (14.5 ) $ 0.3 Items Relating to Discontinued Activities Pension charge
Slide 20: Non-GAAP Reconciliation: Q2 2020 Adjusted EBITDA by Segment
Non - GAAP Reconciliation: Q2 2020 Adjusted EBITDA by Segment Three Months Ended June 30, 2020 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Net gain (loss) $ (7.2 ) $ 5.1 $ 1.7 $ (7.0 ) $ (17.2 ) $ (24.6 ) Items Relating to Discontinued Activities Pension char
Slide 21: Non-GAAP Reconciliation: Q1 2020 Adjusted EBITDA by Segment
Non - GAAP Reconciliation: Q1 2020 Adjusted EBITDA by Segment Three Months Ended March 31, 2020 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Net gain (loss) $ (1.2 ) $ 5.0 $ 0.1 $ (1.0 ) $ (20.3 ) $ (17.4 ) Items Relating to Discontinued Activities Pension cha
Slide 22: Non-GAAP Reconciliation: FY 2019 Adjusted EBITDA by Segment
Non - GAAP Reconciliation: FY 2019 Adjusted EBITDA by Segment Twelve Months Ended December 31, 2019 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Net gain (loss) $ 0.3 $ 21.6 $ (3.1) $ 2.3 $ (58.1 ) $ (37.0 ) Items Relating to Discontinued Activities Pension ch
Slide 23: Non-GAAP Reconciliation: Q4 2019 Adjusted EBITDA by Segment
Non - GAAP Reconciliation: Q4 2019 Adjusted EBITDA by Segment Three Months Ended December 31, 2019 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Corporate Total Net gain (loss) $ 1.6 $ 5.4 $ — $ 1.6 $ (21.4 ) $ (12.8 ) Items Relating to Discontinued Activities Pension charges
Slide 24: Pro Forma Key Performance Indicators – Gaming
Pro Forma Key Performance Indicators – Gaming Note: End of period installed base is total terminal base excluding service only (1) Includes all gaming terminals in which the company take a participation revenue share across all territories. (2) Includes all days of the year, including the days durin
Slide 25: Pro Forma Key Performance Indicators – Virtual Sports
Pro Forma Key Performance Indicators – Virtual Sports Unaudited Q1 Q2 Q3 Q4 Full Q1 Q2 Q3 Q4 Full Virtual Sports 2019 2019 2019 2019 year 2020 2020 2020 2020 year No. of Live Customers at the end of the period 65 65 60 60 60 56 57 56 55 55 Average No. of Live Customers 64 65 60 59 62 56 58 56 56 58
Slide 26: Pro Forma Key Performance Indicators – Interactive
Pro Forma Key Performance Indicators – Interactive (1) Results for the twelve months ended December 31, 2019 are pro forma for full year of NTG results. Unaudited 26 Q1 Q2 Q3 Q4 Full Q1 Q2 Q3 Q4 Full Interactive 2019 (1) 2019 (1) 2019 (1) 2019 year (1) 2020 2020 2020 2020 year No. of Live Customers
Slide 27: Pro Forma Key Performance Indicators – Leisure
Pro Forma Key Performance Indicators – Leisure (1) Motorway Service Area machines (2) Results for the twelve months ended December 31, 2019 are pro forma for full year of NTG results Note: End of period installed base Gaming is gaming machines Cat B&C only and End of period installed base Other is a
Slide 28: Glossary of Terms
Glossary of Terms GAMING E nd of Period Installed Base is equal to the number of deployed Gaming terminals at the end of each period that have been placed on a participation or fix ed rental basis. Gaming participation revenue, which comprises the majority of Gaming service revenue, is directly rela
Slide 29: Glossary of Terms continued
Glossary of Terms continued VIRTUAL SPORTS Total Revenue (£m) represents total revenue for the Virtual Sports segment, including recurring and upfront service revenue. Total Revenue (£m) – Retail consists of revenue earned through players wagering at Virtual Sports venues. Total Revenue (£m) – Sched
Slide 30: Inspired – Essential Entertainment
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