Inspired Entertainment, Inc. · NASDAQ:INSE
Inspired Entertainment — Investor Presentation (March 2021)
25 slides from Inspired Entertainment's investor presentation, Mar 15, 2021
Slide 1: Investor Presentation March 2021
1 I N V E S T O R P R E S E N T A T I O N M a rc h 2 0 2 1
Slide 2: Safe Harbor / Non-GAAP Financial Disclosures
S a f e H a r b o r / N o n - G AA P F i n a n c i a l D i s c l o s u r e s Fo r wa r d - Lo o ki n g S tate m e n ts This presentation includes forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward - looking statements include, but a
Slide 3: Proven and Experienced Management Team
3 P r o v e n a n d E x p e r i e n c e d M a n a g e m e n t T e a m Name L o r n e W e i l B r oo k s P i e rc e D a ni el Si l ve r s S t e w a r t B a k er Ca r ys Da m on Position E xe cu t i v e C h a irm an P r e sid e n t a n d C hi ef O p e r a t i n g O ff i c e r E xe cu t i v e V i c e P
Slide 4: Highlights
4 H i g h l i g h ts A leading omni - channel B2B provider of Gaming, Leisure, Virtual Sports and Interactive content globally A leading presence in the UK, Greece and Italy with significant momentum in North America Combination of strong technology and top - performing content drive over 80% re
Slide 5: Key Drivers in Inspired Businesses
K e y D r i v e r s i n I n s p i r e d B u s i n e s s e s C
Slide 6: Recent Key Highlights
R e c e n t K e y H i g h l i g h t s Gaming • Emerging North American VLT business • Entry into Illinois VLT market with 429 cabinets sold through Q4 2020 — Inspired cabinets have consistently outperformed competitors for Illinois trial customers • 100 VLTs have been placed with Western Canada Lott
Slide 7: Substantial Recurring Revenue Supported by Long-Term Participation-Based Contracts
Substantial Recurring Revenue Supported by Long - Term Participation - Based Contracts G a m i n g $ 1 1 0 M M 7 1 % ( 2 ) V i r t u a l S p o r t s $ 33 M M 94% I n s p i r e d F Y 2 0 2 0 R e c u rr i n g R e v e n u e ( 1 ) $ 2 00 M M 84% (2) Inspired L a r g e i n s t a ll e d b a s e P a rt i c
Slide 8: Reopening Has Demonstrated Business Resilience
8 R e op e n i n g H a s D e m o n s t r a t e d B u s i n e s s R e s i l i e n c e R e c e n t B u s i n e s s U pd a t e Inspired was able to return to growth in Q3 2020 after the initial COVID - 19 lockdowns in Europe due to our comprehensive COVID - 19 mitigation plan and the strength of our
Slide 9: Significant Momentum in Online
S i g n i f i c a n t M o m e n t u m i n O n l i n e OnlinerevenuesbetweenOnlineVirtualsandInteractivenearlydoubledinQ42020versusQ42019 Q 2 2 0 1 9 S i g n e d d ea l t o p r o v i d e o n l i n e c a s i n o g a m e s t o L o t o - Q u e b e c L a u n c h e d I n t e r a ct i w i t h L o tt o m a
Slide 10: Gaming
G A M I N G Gaming growth shifting from large casinos to many distributed venues Inspired is a leader in server based gaming with ~32,000 machines live and top games in key jurisdictions, including UK, Greece, Italy and N o r t h A m e r i c a w i t h i t s r e c e n t l a un c h i n I ll i n o
Slide 11: Well Positioned for North America Route Markets
11 Well Positioned for North America Route Markets Inspired’s Valor Œ terminal commercially entered Illinois i n Q 4 2 0 1 9 — 429 Valor terminals sold since launching in Q4 2019 — Nearly every major Illinois operator trialed Valor and all r e s u l t e d i n f o ll o w - o n o r d e r s — New Ill
Slide 12: Virtual Sports
O R T S V I R T U A L S P C r ea t o r a n d w o r l d — L a r g e s t p o rt f o l i o , — C o n t i nu a l s t r e a m b r ea d t h o f b e t t y p — C r o s s - o v e r p r o du H i gh m a r g i n w i t h P o p u l a r i n b e tt i n g E x p a n di n g p o rt f o l i a n d W a s h i n g t
Slide 13: Interactive
INTERACTIVE 1 3 $ 5 .9 $ 6. 3 $ 7 . 1 $ i n millio n s Online gaming operators use our top - performing game titles online and on mobile devices worldwide Interactive Adjusted EBITDA grew from $0.1 million to $7.5 million between 2019 and 2 0 2 0 w i t h i n c r e m e n t a l m a r g i n e x pa
Slide 14: Increased Share of Multi-Billion High-Growth Segment
1 ) S o u rc e : H2 G C e s t i m a t e s f r o m J u l y 2 0 2 0 Worldwide Interactive gaming sector generated $61.6 billion(1) in 2019 and is expected to grow due to secular d e m a n d d r i v e r s : — I n cr ea s e d t i m e o n d e v i c e — N e w s t a t e l e g i s l a t i o n t o c o m b
Slide 15: Leisure
L E I S U R E A leading supplier of gaming terminals to pubs, arcades, service areas and h o l id a y r e s o rt s i n t h e U K A bi l i t y t o l e v e r a g e t o p p e r f o r m i n g c o n t e n t a cr o s s p l a t f o r m s P o t e n t i a l f o r di g i t a l tr a n s i t i o n t o d r
Slide 16: Leader Across Multiple Complementary Product Verticals
1 6 L e a d e r A cr o s s M u l t ip l e C o m p l e m e n t a r y P r od u c t V e r t i c a l s 14,000+ U K L B O I n s t a l l e d B a s e 8,400+ U K P u b s I n s t a l l e d B a s e 7,000+ U K H o l id a y P a r k s , A G C s a n d M S A s I n s t a l l e d B a s e # 1 S B G Game i n G r e e c
Slide 17: Proven Track-Record of Strong Content Development
1 7 Proven Track - Record of Strong Content Development V a l o r P r i s m a t i c P r i s m a t i c C o m m u n i t y Three - timeVirtualSportssupplieroftheyearatICEandbyEGR Virtual Sports Gaming / Interactive Content Gaming Content & Hardware Development Inspired’s omni - channel approach seeks t
Slide 18: Long-Standing Customer Relationships
1 8 L o n g - S t a n di n g C u s t o m e r R e l a t i o n s h i p s 1 5 + y ea r s 1 5 + y ea r s 1 5 + y ea r s 1 5 + y ea r s 11 + y ea r s 11 + y ea r s 11 y ea r s 9 y ea r s 9 y ea r s 7 y ea r s 7 y ea r s 6 y ea r s 3 y ea r s R e p r e s e n t a t i v e C u s t o m e r s U n d e r C o n t
Slide 19: Market Capitalization
1 9 M a r k e t C a p i t a l i z a t i o n Note: Balance sheet figures are as of December 31, 2020. Inspired's audit of its 2020 annual consolidated financial statements is not yet complete and accordingly all financial amounts referred to are unaudited and represent management's estimates. These a
Slide 20: Appendix
INSPIRED . Appendix <>
Slide 21: Segment Performance FY2020
2 1 S e g m e n t P e r f o r m a n c e F Y 2 0 2 0 Unau d i t e d, ( $ i n m i l li o n s ) G a m i n g Virtual Sports I n t e r a ct i v e L e i s u r e Corporate T o t al 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.
Slide 22: Segment Performance FY2019
2 2 S e g m e n t P e r f o r m a n c e F Y 2 0 1 9 Unaudited, ($ in millions) Gaming Virtual Sports Interactive Leisure Co r po r at e T ota l Re v e n ue : 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 d
Slide 23: Non-GAAP Reconciliation: FY2020 Adjusted EBITDA by Segment
2 3 Non - GAAP Reconciliation: FY2020 Adjusted EBITDA by Segment Note: Exchange rate in the table is calculated by dividing the USD total revenue by the GBP total revenue, therefore this could be slightly different from the average rate during the period depending on timing of transactions. Twelve M
Slide 24: Non-GAAP Reconciliation: FY2019 Adjusted EBITDA by Segment
2 4 Non - GAAP Reconciliation: FY2019 Adjusted EBITDA by Segment Note: Exchange rate in the table is calculated by dividing the USD total revenue by the GBP total revenue, therefore this could be slightly different from the average rate during the period depending on timing of transactions. Twelve M
Slide 25: Inspired: Essential Entertainment
Sp INSPIRED ESSENTIAL ENTERTAINMENT
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