Aristocrat Leisure Limited · ASX:ALL
Aristocrat Leisure — Investor Presentation (May 2023)
37 slides from Aristocrat Leisure's investor presentation, May 15, 2023
Slide 1: Investor presentation
Investor presentation Aristocrat accelerates its online RMG growth strategy with the proposed acquisition of NeoGames 15 May 2023 Aristocrat Leisure Limited
Slide 2: Important notices and disclaimer
Important notices and disclaimer This document and any oral presentation accompanying it has been but not limited to, the risks and uncertainties in competitive prepared in good faith, however, no express or implied representation developments, regulatory actions, litigation and investigations, or w
Slide 3: Agenda
Agenda 1. Acquisition Summary 2. Overview of NeoGames 3. Strategic Rationale 4. Combined Group and Financial Impact 5. Conclusion 6. Q&A 7. Appendices 3
Slide 4: Acquisition Summary
Acquisition Summary 4
Slide 5: Transaction Overview
Transaction Overview Acquisition • Aristocrat has announced the proposed acquisition of 100% of NeoGames S.A. (“NeoGames”) for a cash price of US$29.50 per share (the “Acquisition”) summary • NeoGames is a compelling strategic acquisition for Aristocrat to deliver its online RMG ambitions and compri
Slide 6: A full content, technology and distribution solution
A full content, technology and distribution solution to connect operator to player Online RMG content iLottery iGaming Online Sports Betting (OSB) Other online RMG verticals e.g. Live Dealer, iPoker, Other Sports Technology • Remote Game Server (RGS) aggregator Aggregation • Game Development Kit (GD
Slide 7: Combination of Aristocrat's relationships and content with NeoGames' platform
Combination of Aristocrat’s relationships and content with NeoGames' platform will accelerate growth Full-suite solution for online RMG ecosystem 7
Slide 8: Overview of NeoGames
Overview of NeoGames 8
Slide 9: Leading B2B provider operating in every segment of online RMG
Leading B2B provider operating in every segment of online RMG iLottery1 iGaming and OSB2 iGaming2 OSB2 ~10% ~15% ~30% ~45% • Global leader in iLottery solutions • Full services provider for • Network of >140 operators • Complete omni-channel (with 67% segment share in the iGaming and OSB operators •
Slide 10: Global scale in attractive, high-growth segments
Global scale in attractive, high-growth segments +200 +50 Operating across Customers 4 continents Regulated jurisdictions iLottery iGaming and OSB iGaming OSB US$11 billion US$70 billion US$22 billion US$48 billion global global global global iLottery TAM (2022) iGaming and OSB iGaming TAM (2022) OS
Slide 11: NeoGames (iLottery) overview
Global TAM: US$11 billion NeoGames (iLottery) overview (2022) 360º #1 17 solution for in US Customers platform, iLottery2 across 3 content and continents Platform & Games1 services Games North America Europe RoW Highly regulated segment ü Long-term agreements with recurring revenues Alberta Atlantic
Slide 12: AspireCore (iGaming solution) overview
Global TAM: US$70 billion AspireCore (iGaming solution) overview (2022) Focus on locally Leader regulated 30+ 88 Customer support Payments & compliance jurisdictions in European PAM and v v UK Managed Partners Brands1 Denmark Services PAM Portugal Risk, KYC and fraud Player retention Ontario managem
Slide 13: Pariplay (aggregation and games) overview
Global TAM: US$22 billion Pariplay (aggregation and games) overview (2022) Inhouse • Powerful engagement tools content studio • 100+ proprietary slot games Serving over Access to over 28 15k 1,000 brands GDK • Flexible turnkey game development to empowering Regulated Games allow global developer dep
Slide 14: BtoBet (Online Sports Betting) overview
Global TAM: US$48 billion BtoBet (Online Sports Betting) overview (2022) Seamless • Omni-channel player-centric capabilities Sportsbook sportsbook platform • Embedded player engagement tools Access to over Regulated jurisdictions Africa Europe (including UK) +20 +50 Scaled content Latin America Part
Slide 15: Strategic Rationale
Strategic Rationale 15
Slide 16: Strategically significant and compelling acquisition
Strategically significant and compelling acquisition 1 Positions Aristocrat with global scale and capability in the growing online RMG industry through the acquisition of a leading platform and technology provider 2 Significant revenue opportunities from linking Aristocrat’s content and relationship
Slide 17: Positions Aristocrat with global scale and capability
1 Positions Aristocrat with global scale and capability in the growing online RMG industry through the acquisition of a leading platform and technology provider Content RGS / Aggregation Platform Distribution channels Examples Commercial casinos Tribal casinos Online operators Government bodies US$8
Slide 18: Significant revenue opportunities from linking content and relationships
2 Significant revenue opportunities from linking Aristocrat’s content and relationships with NeoGames' platform and technology for a superior customer solution Accelerated growth through combined Aristocrat and NeoGames capabilities ü Expanded distribution of leading Aristocrat content via Pariplay,
Slide 19: Substantial international growth opportunities
3 Substantial international growth opportunities for the combined group, particularly in the exciting North American market North America 2022 Europe 2022 Rest of World 2022 online RMG TAM: online RMG TAM: online RMG TAM: US$15 billion US$39 billion US$27 billion iLottery: US$2 billion iLottery: US$
Slide 20: Segment-leading iLottery business
4 Segment-leading iLottery business in a complementary and growing adjacency which facilitates further online RMG penetration iLottery is an entry point for a full service offering NeoGames has global iLottery presence Government/state bodies often need full online RMG solution as complete package
Slide 21: Experienced and proven management team
5 Experienced and proven management team to continue to scale the business, with a strong cultural alignment Proven management team who remain committed to the business under Aristocrat ownership Tsachi Maimon Moti Malul (President, Head of iGaming) Rinat Belfer (CEO) (COO) > 15 years > 10 years > 1
Slide 22: Combined Group and Financial Impact
Combined Group and Financial Impact 22
Slide 23: Significant historical growth across NeoGames' business segments
Significant historical growth across NeoGames' business segments Pro forma combined revenues 38% CAGR1 Pro forma combined Adjusted EBITDA 34% CAGR2 Q1’2023 Revenue of US$64.3 million3 Q1’2023 Adjusted EBITDA of US$20.2 million3 Aspire Global acquired by NeoGames in 2022 US$227 million US$71 million
Slide 24: Reconciliation of NeoGames financials
Reconciliation of NeoGames financials Bridge to NeoGames pro forma FY22A Revenue and Adjusted EBITDA under Aristocrat ownership Illustrative adjustments FY22A pro forma Aspire Global under Aristocrat ownership NeoGames under FY22A (US$ million) NeoGames FY22A pre-acquisition contribution1 NeoGames F
Slide 25: Pro forma net debt and sources & uses
Pro forma net debt and sources & uses for transaction Financial summary of acquisition Sources and uses1 • All cash offer of US$29.50 per share Sources $ million Purchase price • Acquisition values NeoGames' fully diluted equity at approximately US$1.0 Existing cash 1,844 billion ($1.5 billion) • Im
Slide 26: Indicative Aristocrat composition pre and post Acquisition
Indicative Aristocrat composition pre and post Acquisition Pro forma historical financials NeoGames pro forma under Aristocrat pro forma Aristocrat ownership (including NeoGames under FY22A ($ million)1 Aristocrat (Sep-22 LTM)2 (Dec-22 LTM)3 Aristocrat ownership) Combination • Acquisition expected t
Slide 27: Deliver scaled revenue opportunities to accelerate growth
Deliver scaled revenue opportunities to accelerate growth Online RMG content / RGS aggregation iLottery iGaming OSB • Monetises Aristocrat content and brands • Distribute Aristocrat content through Pariplay’s existing § Leverage Pariplay network for aggregated through the new iLottery channel global
Slide 28: Conclusion
Conclusion 28
Slide 29: Strategically significant and compelling acquisition
Strategically significant and compelling acquisition 1 Positions Aristocrat with global scale and capability in the growing online RMG industry through the acquisition of a leading platform and technology provider 2 Significant revenue opportunities from linking Aristocrat’s content and relationship
Slide 30: Q&A
Q&A 30
Slide 31: Appendices
Appendices 31
Slide 32: A. Glossary of Terms
\ IX G7 A. Glossary of Terms oa ia
Slide 33: Glossary of terms
Glossary of terms A$ Australian dollar iPoker Virtual representation of traditional player versus player featuring all standard poker variants played online via a website or mobile app Adjusted EBITDA NeoGames' adjusted Earnings before Interest, Tax, Depreciation and Amortisation includes adjustment
Slide 34: B. Shareholder Support Agreement
B. Shareholder Support Agreement 34
Slide 35: Irrevocable undertakings / support agreement
Irrevocable undertakings / support agreement Support agreement • Aristocrat has entered into a Support Agreement with NeoGames’ major shareholders in respect of approximately 20.4 million shares, representing approximately 61% of NeoGames' outstanding shares • Pursuant to the terms of the Support Ag
Slide 36: C. Supporting Financial Materials
C. Supporting Financial Materials 36
Slide 37: Reconciliation of NeoGames' revenue
Reconciliation of NeoGames’ revenue Bridge to NeoGames’ pro forma FY22A revenue under Aristocrat ownership Illustrative adjustments FY22A pro forma Aspire Global NeoGames FY22A pro under Aristocrat ownership NeoGames under Aristocrat NeoGames FY22A pre-acquisition contribution1 forma (FY22A) ownersh
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