Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (March 2022)
23 slides from Inspired Entertainment's investor presentation, Mar 11, 2022
Slide 1: Investor Presentation March 2022
4. INVESTOR PRESENTATION (INSPIRED March 2022 ESSENTIAL ENTERTAINMENT
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 our busines
Slide 3: Inspired Entertainment is a leading B2B provider of gaming content and solutions
Inspired Entertainment, Inc. Is a leading 82B provider of gaming content systems and solutions across online/mobile and retail channels around the world which predominantly generates recurring revenues pursuant to long-term contracts. y i es Experienced developer of differentiated CONTENT-DRIVEN and
Slide 4: Proven and Experienced Management Team
Proven and Experienced Management Team ~4 Lorne Weil Brooks Pierce Daniel Silvers Stewart Baker Carys Damon President and Chief Executive Vice President Executive Vice President Executive Vice President Peso, Sauer aera Operating Officer and Chief Strategy Officer and Chief Financial Officer © and G
Slide 5: Investment Highlights
Investment Highlights A leading omni-channel B2B gaming provider with recurring revenue through long-term contracts co f__N Growth potential in content-driven Interactive and Virtual Sports segments oon Strong resurgence of land-based channels following COVID-19 closures on LOT Margin expansion and
Slide 6: Inspired business segments and momentum in North America
<4, INSPIRED VIRTUAL SPORTS INTERACTIVE GAMING LEISURE 4, INSPIRED Content Driven High-growth, capital efficient VIRTUAL SPORTS INTERACTIVE Leverage Top-Performing Content in Rapidly Growing Online Gaming Rapid Expansion of Legalized Sports Betting and Lottery SIGNIFICANT MOMENTUM IN NORTH AMERICA G
Slide 7: Long-Term Growth Drivers
Long-Term Growth Drivers = Continue to grow capital efficient Interactive and Virtual Sports businesses = Expanded into Connecticut iGaming in @1 2022 = Announced iGaming license in Ontario, plans to launch in Q2 2022 = Expand North American VLT distribution = Deploy existing content into underpenet
Slide 8: Content Creation is Core Competency
Content Creation is Core Competency Proven track record for creating feature-rich games that deliver exciting experiences for regulated gaming, betting, lottery, social and leisure operators across land-based and mobile channels worldwide al PARKS BETTING = Cross-channel approach - We SHOPS . design
Slide 9: Significant Momentum in Online Channels
Significant Momentum in Online Channels Our content-driven Interactive and Virtual Sports businesses continue to grow their customer base in new, emerging and core markets LOTIOMATICA oa ties novibet Dene CASINO. iGAMING and iLOTTERY 2019 VIRTUAL SPORTS RESORTS poripby 2. sag Harrahg tee ES © Fanove
Slide 10: Interactive
NIERAG INE Online gaming operators use our top-performing game titles online and on mobile devices worldwide High-growth, high-margin recurring revenue business Gaining share from the launch of new content across the estate, growth in the customer base in new, emerging and core markets and increased
Slide 11: Virtual Sports
VIRTUAL SPORTS A pioneer and leader in Ultra-HD games that create an always-on sports wagering experience Larges portfolio with basketball, NFLA football, MLBPA Cross-over produc! s High margin with revenue primarily generated through rev share contracts Popular in betting shops in the UK, Italy and
Slide 12: Gaming
GAMING = 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 with top games in key jur
Slide 13: Leisure: server based gaming terminals and pay to play products
e A leading supplier of server based gaming terminals and pay to play entertainment products to pubs, arcades, motorway service areas and holiday resorts in the UK e Ability to leverage top performing content across platforms e Potential for digital transition to drive improved economics — Analog ma
Slide 14: Investment Highlights
Investment Highlights oho A LEADING OMNI-CHANNEL B2B GAMING PROVIDER WITH RECURRING REVENUE THROUGH LONG-TERM CONTRACTS otherwise noted below. cts and licensing arrangements which are amortized over a multi-year period. 2020 Recurring revenue excludes VAT-related revenue. revenue and $317 millon of
Slide 15: Market Capitalization
Market Capitalization Ca zation Table (unaudited) Actual (US$ in millions, except per share data) 12/31/21 Cash $47.8 Senior Secured Notes" 316.7 Accrued Interest, Finance Lease Liabilities and Pension Liability?) 48 Total Debt $321.5 Net Debt $273.7 Diluted Shares Outstanding”) (in millions) 28.017
Slide 16: Appendix
INSPIRED . Appendix
Slide 17: Summary of 4Q 2021 Segment Performance
Summary of 4Q 2021 Segment Performance 4 Three Months Ended December 31, 2021 ; : Adjusted EBITDA Revenue Adjusted EBITDA i Margin (i$ millions) Q4 2021 Q4 2020 % Q4 2021 Q4 2020 % Q42021_ _Q4 2020 Segments Interactive $5.7 $4.2 36% $2.6 $2.1 24% 46% 50% Virtual Sports 11.0 87 26% 8.5 63 34% 71% 73%
Slide 18: Summary of FY 2021 Segment Performance
Summary of FY 2021 Segment Performance 4 'welve Months Ended December 31, 2021 Revenue Adjusted EBITDA! Adjusted EBITDA Margin’ (in $ millions) FY 2021 FY 2020 % FY 2021 FY 2020 % FY 2021 FY 2020 Segments Interactive $22.8 $13.3 72% $13.0 $7.5 73% 57% 57% Virtual Sports. 36.0 32.4 11% 28.4 25.1) 13%
Slide 19: Non-GAAP Reconciliation: 4Q 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: 4Q 2021 Adjusted EBITDA by Segment Three Months Ended December 31, 2021 Virtual Gaming Sports Interactive Leisure Corporate Total (In millions) Net gain (loss) $ 3.0 $ as! thal 85 2s: (15.3)$ (1.2) Items Relating to Discontinued Activities Pension charges — — — — 0.2 0.2 Ite
Slide 20: Non-GAAP Reconciliation: 4Q 2020 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: 4Q 2020 Adjusted EBITDA by Segment Virtual Gaming Sports Interactive Leisure Corporate Total (In millions) Net gain (loss) $ 28.3 $ 5.1_$ 14 $ (5.6) $ (26.1)$ ell Items Relating to Discontinued Activities Pension charges — — — — 0.1 0.1 Items outside the normal course of bus
Slide 21: Non-GAAP Reconciliation: FY 2021 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY 2021 Adjusted EBITDA by Segment Virtual Gaming Sports ‘Interactive —_Leisure Corporate Total (In millions) Net gain (loss) g (SSS 92.8 (1.0) $ (69.5)$ (36.7) Items Relating to Discontinued Activities Pension charges = = = = 0.8 08 Items outside the normal course of busine
Slide 22: Non-GAAP Reconciliation: FY 2020 Adjusted EBITDA by Segment
Non-GAAP Reconciliation: FY 2020 Adjusted EBITDA by Segment Virtual Gaming _ Sports _Interactive _Leisure_—_ Corporate Total (In millions) Net gain (loss) SOS SU LO 49 $ (15.8) $ (72.0)$ (2.4) Items Relating to Discontinued Activities Pension charges = = = = 0.6 0.6 Items outside the normal course o
Slide 23: Inspired Essential Entertainment
~~ INSPIRED ESSENTIAL ENTERTAINMENT 4 INSPIRED
Inspired Entertainment — Investor Presentation (March 2022) on 6ix