24 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's earnings presentation, Mar 9, 2017
Slide 1: Agenda
3/9/2017 2 Agenda Marco Sala, CEO, International Game Technology PLC Strategic Update 1 Alberto Fornaro, CFO, International Game Technology PLC Q4’16 & FY’16 Results 2 Q&A 3
Slide 2: 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 other matters. These statements may discuss goals, intentions and expectations as to future plans, trends,
Slide 3: Comparability of Results
4 Comparability of Results All figures in this presentation are prepared under U.S. GAAP, unless noted otherwise. As a result of the combination of GTECH S.p.A. (“GTECH”) and International Game Technology (“legacy IGT”), which was completed on April 7, 2015, a number of items affect the comparabilit
Slide 4: Comparability of Results
way Comparability of Results All figures in this presentation are prepared under U.S. GAAP, unless noted otherwise. As a result of the combination of GTECH S.p.A. ((GTECH') and International Game Technology (“legacy IGT"), which was completed on April 7, 2015, a number of items affect the comparabil
Slide 5: A Year of Important Milestones
6 Results in line with expectations Grew profits, reduced debt Bolstered global Lottery leadership Robust same-store revenue growth worldwide; Italy Lotto wagers surpassed €8 billion Won Italy Lotto concession for nine more years Secured key contracts in North America and International segments Inve
Slide 6: A Focus on Continuous Improvement
7 Mixed Social & Interactive results Soft DoubleDown performance; recent improvement efforts gaining traction Reinvigoration of Italy and International Interactive offerings Protected Italy market positions A history of growth through innovation Content: NumeroORO, instant tickets, Wheel of Fortune®
Slide 7: 2016 Fourth Quarter Financial Results
2016 FOURTH QUARTER FINANCIAL RESULTS
Slide 8: Q4'16 Financial Highlights
9 Revenue Adjusted Operating Income Q4’16 Financial Highlights Adjusted EBITDA Diluted EPS $ M except EPS -2% -6% -4% Notes: As adjusted results remove impact of purchase price amortization, impairment charges, restructuring expense and transaction expense (see appendix for details) Notes: $/€ FX da
Slide 9: Q4'16 North America Gaming & Interactive Highlights
10 Developments Q4’16 North America Gaming & Interactive Highlights Revenue $ M Key Performance Indicators Service revenue impacted by lower installed base Y/Y DoubleDown reflects lower DAUs; [improvement efforts underway] Product sales driven by large systems sales (MGM National Harbor, Palms); IP
Slide 10: Q4'16 North America Lottery Highlights
11 Q4’16 North America Lottery Highlights $ M Revenue Developments Key Performance Indicators 3/9/2017 Same-store revenue growth supported by third consecutive year of strong Q4 instant ticket sales despite lower jackpot activity Indiana was among best performing states due to strong holiday sales a
Slide 11: Q4'16 International Highlights
$ M Revenue Developments Key Performance Indicators Q4’16 International Highlights 2.6% same-store revenue expansion on broad-based growth in EMEA and LAC, partially offset by continued weakness in U.K. Gaming service revenue improved on installed base growth in EMEA (Eastern Europe, South Africa) a
Slide 12: Q4'16 Italy Highlights
$ M Revenue Developments Key Performance Indicators 13 Q4’16 Italy Highlights Lotto upfront concession fee amortization has same treatment as Scratch & Win Strong Lotto wager growth, fueled by Late Numbers and 10eLotto/Numero ORO Sports Betting up on wager growth, especially live betting Operating p
Slide 13: Q4'16 Revenue & Operating Income
Revenue 14 Q4’16 Revenue & Operating Income $ M Adjusted Operating Income 3/9/2017 Revenue reflects global lottery growth and higher North America gaming product sales, more than offset by lower gaming service revenue Adjusted Operating Income down primarily on large Italy value-added tax (“VAT”) cr
Slide 14: FY'16 Financial Highlights
15 Revenue Adjusted Operating Income FY’16 Financial Highlights Adjusted EBITDA $ M +2% +3% +9% Capital Expenditures 3/9/2017 Notes: As adjusted results remove impact of purchase price amortization, impairment charges, restructuring expense and transaction expense (see appendix for details) Notes: $
Slide 15: Debt and Leverage Profile
16 $ M Debt and Leverage Profile 3/9/2017 Net debt improved compared to year-end 2015 level notwithstanding Lotto upfront concession payments in Q2’16 and Q4’16 Leverage ratio improved vs. Q4’15 and when compared to all other quarters Net Debt/LTM Adj. EBITDA 4.52x 4.31x Lotto (256) S&W and Other 68
Slide 16: FY'16 Cash Flow Statement
17 FY’16 Cash Flow Statement $ M 3/9/2017 Strong Operating Cash Flow in FY’16 - Includes approximately $451 million in cash interest paid - Cash taxes of $183 million Net Lotto upfront concession payment of $409 million in FY’16 - $665 million upfront concession payment - $256 million contributed by
Slide 17: FY'17 Outlook
18 FY’17 Outlook Assumes $/€ FX of 1.10 2017 adjusted EBITDA of $1,680 - $1,760 million Reflects lower jackpot and late number activity and new Lotto concession CapEx for lottery and gaming installed base, ex-Lotto $525-$575 million maintenance CapEx, including ~$100 million related to timing of new
Slide 18: FY'17 Outlook
y) FY'17 Outlook Assumes S/€ FX of 1.10 2017 adjusted EBITDA of $1,680 - $1,760 million Reflects lower jackpot and late number activity and new Lotto concession CapEx for lottery and gaming installed base, ex-Lotto $525-$575 million maintenance CapEx, including ~$100 million related to timing of new
Slide 19: New Lotto Concession Accounting
20 New Lotto Concession Accounting Revenues and expenses will be fully consolidated up to the Net income line Upfront concession payments will be amortized against revenues on a straight-line basis for the nine-year term of the contract; reported revenues will appear lower than the prior year No imp
Slide 20: Q4'16 Income Statement (As Reported)
21 Note: $/€ FX daily average: 1.08 in Q4’16; 1.10 in Q4’15 $ M except EPS Q4’16 Income Statement (As Reported) 3/9/2017 % Constant Currency Income Statement Q4'16 Q4'15 Change Q4'16 % Chg. Service Revenue 1,061 1,109 -4% 1,072 -3% Product Sales 260 256 1% 260 2% Total Revenue 1,321 1,365 -3% 1,332
Slide 21: Q4'16 Reconciliation of Non-GAAP Measures
22 Q4’16 Reconciliation of Non-GAAP Measures 3/9/2017 $ M except EPS Adjustments Q4'16 As Purchase Foreign Impairment/ Trans. Q4'16 As Reported Accounting Exchange Restructure Expense Adjusted Total Revenue 1,321 - - - - 1,321 Cost of Services 642 (45) - - - 597 Cost of Sales 179 (30) - - - 149 SG&A
Slide 22: FY'16 Income Statement (As Reported)
23 $ M except EPS FY’16 Income Statement (As Reported) 3/9/2017 Note: $/€ FX daily average: 1.11 in FY’16; 1.11 in FY’15 % Income Statement FY'16 FY'15 Change Service Revenue 4,376 3,978 10% Product Sales 778 711 9% Total Revenue 5,154 4,689 10% Adjusted EBITDA 1,755 1,611 9% Operating Income 660 54
Slide 23: FY'16 Reconciliation of Non-GAAP Measures
24 FY’16 Reconciliation of Non-GAAP Measures 3/9/2017 $ M except EPS Adjustments FY'16 As Purchase Foreign Impairment/ Trans. FY'16 As Reported Accounting Exchange Restructure Expense Adjusted Total Revenue 5,154 1 - - - 5,155 Cost of Services 2,553 (181) - - - 2,372 Cost of Sales 582 (119) - - - 46
Slide 24: Restracrng
a ” q Restracrng Irpoirment ‘Transaction xpense ‘Operating Income Foreign xenange ‘otner Income (Net) Ingerest Expense (Net) Income Before Taxes Income Taxes Net Income Moody Interest PS - utes 2s as . se (9) : 946135) : : uM @) : : 8 a » @& - @ - . : " : ae sD) 8,888 60468 26 3 101 Cc : : 6 56) 8 o