21 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's earnings presentation, May 26, 2016
Slide 1: Agenda
5/26/2016 2 Agenda Marco Sala, CEO, International Game Technology PLC Strategic Update 1 Alberto Fornaro, CFO, International Game Technology PLC Q1’16 Results 2 Q&A 3
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
5/26/2016 3 Cautionary Statement Regarding Forward-Looking Statements This presentation may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning IGT and other matters. These statements may discuss goals, intentions and e
Slide 3: Comparability of Results
5/26/2016 4 Comparability of Results All figures presented 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 aff
Slide 4: Comparability of Results
way Comparability of Results All figures presented 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
Slide 5: Strategic Update
5/26/2016 6 Strategic Update Solid start to year; significant profit expansion Highest quarterly profits since transaction All operating segments contributed to increased profits Strong lottery growth worldwide Record North America Lottery performance, even without Powerball benefit Strong Italy Lot
Slide 6: 2016 First Quarter Financial Results
2016 FIRST QUARTER FINANCIAL RESULTS
Slide 7: Q1'16 Financial Highlights (Pro Forma)
5/26/2016 8 Revenue Adjusted Operating Income Q1’16 Financial Highlights (Pro Forma) Adjusted EBITDA Diluted EPS1 $ M except EPS +4% +12% +35% 1) Reported EPS includes the non-cash FX impact associated with translating EUR-denominated debt into USD for reporting purposes. Note: As adjusted results r
Slide 8: Q1'16 Revenue & Operating Income
Pro Forma Revenue 5/26/2016 9 Q1’16 Revenue & Operating Income $ M Lottery growth reflects substantial Powerball contribution and continued global revenue expansion (North America, Italy, EMEA) Gaming service revenue stable; higher software revenue mostly offset lower installed base Product sales pr
Slide 9: Q1'16 North America Gaming & Interactive Highlights
5/26/2016 10 Developments Q1’16 North America Gaming & Interactive Highlights Revenue $ M Key Performance Indicators Gaming service revenue stable as increased contribution from software offset lower installed base; installed base declined modestly (2%) from Q4’15 level Casino replacement machine un
Slide 10: Q1'16 North America Lottery Highlights
5/26/2016 11 23% same-store revenue growth supported by record Powerball jackpot; significant growth on top of elevated jackpot activity in Q1’15 ($564 million jackpot) Solid performance from LMAs Instant ticket sales and local draw-based game performance also strong; double-digit instants growth fu
Slide 11: Q1'16 International Highlights
5/26/2016 12 Gaming service revenue up on interactive growth, South Africa installed base Lottery same-store revenue up on strength in Europe (including large UK jackpot) Ireland lottery loss partially offset by South Africa win Product sales reflect difficult lottery compares with large New Zealand
Slide 12: Q1'16 Italy Highlights
Developments 5/26/2016 13 Q1’16 Italy Highlights $ M Revenue Key Performance Indicators Continued resilience in sales and profits supported by strong lottery results Double digit increases in 10eLotto/Numero ORO and Late Number wagers on top of double-digit growth in Q1’15 Scratch & Win growth from
Slide 13: New Lotto Concession
5/26/2016 14 New Lotto Concession Lotto (Core Lotto, 10eLotto, Numero Oro) Lottoitalia JV led by Lottomatica - 61.5%; IGH - 32.5%; Arianna 2001 - 4%; Novomatic - 2% 9 years, commencing on November 29, 2016 Fixed at 6% of wagers Entered Bid March ‘16 Provisional Award April ‘16 Final Award May ’16 4Q
Slide 14: Net Debt & Leverage
5/26/2016 15 $ M Net Debt & Leverage Net debt essentially flat with the fourth quarter’s level on a reported basis, lower before FX impact Leverage ratio continues to improve on strong profit results Net Debt/LTM Adjusted EBITDA 4.81x 4.52x 4.41x
Slide 15: Q1'16 Cash Flow Statement
5/26/2016 16 Q1’16 Cash Flow Statement $ M Strong Q1’16 performance Includes approximately $217 million in cash interest paid during the period Cash interest payments are concentrated in the first and third quarters CapEx reflective of normalized run-rate Large FL and Italy sports betting investment
Slide 16: Q1'16 Cash Flow Statement
Se Q1'16 Cash Flow Statement <= Cash Flow ais Net Cash Flows from Operating Activities 206 Capex (98) Free Cash Flow 108 Debt Proceeds/(Repayment), Net (319) Other - Net a Other Investing/Financing Activities (238) Net Cash Flow (130) Effect of Exchange Rates/Other 9 Net Change in Cash. (124) Cash a
Slide 17: Q1'16 Financial Highlights (As Reported)
5/26/2016 18 Operating Income $ M Q1’16 Financial Highlights (As Reported) Adjusted EBITDA Net Debt Revenue As adjusted results remove impact of purchase accounting, impairment charges, restructuring expense and transaction expense (see appendix for details)
Slide 18: Q1'16 Income Statement (As Reported)
5/26/2016 19 Note: $/€ FX daily average: 1.10 in Q1’16; 1.13 in Q1’15 $ M except EPS Q1’16 Income Statement (As Reported) % Income Statement Q1'16 Q1'15 Change Service Revenue 1,136 790 44% Product Sales 146 58 153% Total Revenue 1,282 848 51% Adjusted EBITDA 460 321 43% Operating Income 188 163 15%
Slide 19: Q1'16 Reconciliation of Non-GAAP Measures
5/26/2016 20 Q1’16 Reconciliation of Non-GAAP Measures $ M Q1'16 As Adjustments Q1'16 As Reported PPA FX Restructure Trans. Exp. Adjusted Total Revenue 1,282 - - - - 1,282 Cost of Services 649 (46) - - - 603 Cost of Sales 122 (30) - - - 92 SG&A 228 (35) - - - 193 R&D 85 (1) - - - 84 Restructuring 9
Slide 20: Reconciliation of Non-GAAP Measures
5/26/2016 21 Reconciliation of Non-GAAP Measures $ M 1 As Reported Legacy IGT Pro Forma Q1 2015 Q1 2016 Q1 2015 Q1 2015 Q1 2016 Net Loss (36) (86) (13) (49) (86) Provision for Income Taxes (9) (9) (4) (13) (9) Non-Operating Expenses 208 283 10 218 283 Depreciation 72 99 29 101 99 Amortization 33 125
Slide 21: Reconciliation of Non-GAAP Measures
Net Loss Provision for Income Taxes Non-Operating Expenses Depreciation ‘Amortization Impairment Amortization of Upfront Payments to Customers ‘Transaction Expense, Net’ Restructuring Expense Non-Cash Purchase Accounting (Excluding O&A) Stock Compensation other ‘Adjusted EBITDA Reconciliation of Non