Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025. · NYSE:BRSL
Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025 — International Game Technology — Investor Day (August 2018)
176 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's investor day presentation, Aug 2, 2018
Slide 1: The Leader in Regulated Gaming Solutions in Growing Global Markets
The Leader in Regulated Gaming Solutions in Growing Global Markets Operate in growing global markets with secular tailwinds Balance and diversity of business, including competitive advantage of being both an operator and supplier, provides resilience and low risk profile Growth fueled by innovation,
Slide 2: Why Regulated Gaming is a Compelling Business
Why Regulated Gaming is a Compelling Business IGT uniquely positioned to provide responsible solutions Player demand is strong worldwide Governments need funds 4
Slide 3: IGT Operates in Growing Global Markets with Secular Tailwinds
IGT Operates in Growing Global Markets with Secular Tailwinds Gross Gaming Yields (GGY1) by Product 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E Source: Global Gaming and Betting Consultants (GBGC) July 2018 Global Gaming Forecast
Slide 4: Breadth & Depth of IGT's Offering Capitalizes on Strong Secular Trends
Breadth & Depth of IGT’s Offering Capitalizes on Strong Secular Trends Most innovative technology, driven by industry-leading R&D Largest gaming content library in the world Full suite of land-based and mobile solutions Global perspective attuned to specific, local needs Lottery Facilities Managemen
Slide 5: Commanding Leading Market Positions Worldwide
Commanding Leading Market Positions Worldwide LOTTO LOTTERY GAMING Largest lottery service provider worldwide Leading global gaming machine company, with significant casino presence worldwide Serve 39 of 45 U.S. lotteries with 78% market share by wagers Largest lottery operator in Italy with 92% mar
Slide 6: Global Perspective with Geographic Diversity
Global Perspective with Geographic Diversity GREENLAND Europe ~3,300 employees ICELAND SWEDEN FINLAND ALASKA 100+ Jurisdictions Served RUSSIAN FEDERATION NORWAY CANADA ESTONIA LATVIA DENMARK LITHUANIA REPUBLIC OF IRELAND UNITED KINGDOM CHANNEL ISLANDS BELARUS NETHERLANDSGERMANY POLAND BELGIUM CZECH
Slide 7: Balanced and Diverse Business Model
Balanced and Diverse Business Model IGT achieved $4.9 Billion in 2017 Revenue Balanced Geographic Mix Diverse Portfolio B2B & B2C Expertise Resilient Business Model 17% 35% 35% 43% 47% 50% 65% 83% 18% 7% 47% North America 35% Italy 18% International 50% Gaming 43% Lottery 7% Other 65% B2B 35% B2C 83
Slide 8: Global Perspective with Geographic Diversity
Global Perspective with Geographic Diversity 100+ Jurisdictions Served North America ~7,000 employees Asia ~400 employees Australia/NZ — ~300 employees v Latin America ~1,000 employees Africa ~100 employees BE sess nner acer
Slide 9: History of Revolutionary Product Innovation
History of Revolutionary Product Innovation Ticket Out Progressive games bill acceptor theme TRUE 3D community bonus management solution poker 11 Ticket In /Multi-Level 1st ground play and1st server based 2000s Embedded1st popular 1st multi-hand 1990s 1st omni-channel WAP Cardless Connect Systems Ad
Slide 10: Acceleration of Compelling Hardware and Content Development
Acceleration of Compelling Hardware and Content Development 6 New Cabinets Launched in 2017 True 4D: 2017 Land-Based Gaming Innovation of the Year Stepper Curve ULTRA 12 Crystal 27 2018 Crystal Dual+CrystalCrystal Curve MEGATOWER S3000 XLTrue 4D 2017 S3000Crystal Wheel Stepper 2016 Crystal Wheel Vid
Slide 11: Driving Faster Market Adoption of New Offer
Driving Faster Market Adoption of New Offer Crystal 27 Crystal Dual 23 Crystal Slant Crystal Curve 50% Penetration 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Number of Months After Release Crystal Dual 23 Crystal Slant Crystal Curve Crystal 27 13
Slide 12: Extensive Roster of New Premium Video Content
Extensive Roster of New Premium Video Content G IGT 2018 INVESTOR DAY 14 2018 2017
Slide 13: Growing Global Gaming Installed Base
Growing Global Gaming Installed Base International-led growth Stabilized the North America casino installed base in the last 12 months • • Traction with new video reel product Consolidated video poker and mechanical reel leadership Expect continued growth in North America and International installed
Slide 14: Rigorous Testing and Piloting Drives Improved Product Performance
Rigorous Testing and Piloting Drives Improved Product Performance Core ---0- IGT 2018 INVESTOR DAY 1s
Slide 15: Global Gaming Unit Sales Have Stabilized
Global Gaming Unit Sales Have Stabilized Solid replacement growth to North America casino customers in last twelve months New & Expansion and VLT replacement unit shipments are variable Adoption of new cabinets and content driving higher average selling prices Expect to grow North America and Intern
Slide 16: Consistent Leader in Central Systems and Innovative Add-On Solutions
Consistent Leader in Central Systems and Innovative Add-On Solutions 18 Innovative Add-On Enhancements: ~20,000 connected devices Named “ and-Based Product of the Year” Deployed at 19 properties at the end of June 2018 Utilized in MGM’s sports betting app Advantage® System Installations: Advantage s
Slide 17: Global Gaming Unit Sales Have Stabilized
Global Gaming Unit Sales Have Stabilized Solid replacement growth to North America casino customers in last twelve months New & Expansion and VLT replacement unit shipments are variable Adoption of new cabinets and content driving higher average selling prices Expect to grow North America and Intern
Slide 18: Lottery: A Very Attractive Business
Lottery: A Very Attractive Business Steady and Consistent Innovation-Driven Growth Cash Flows Predictable, Resilient, and Accelerating A Diversified Business IGT’s Unique Positioning • Low-to-mid single-digit global growth, expected to be maintained in the medium term Innovation drives growth; suppl
Slide 19: Major Contracts Secured for Several Years
Major Contracts Secured for Several Years Revenue-Weighted, Contract Wins/ Average Years Remaining, Renewals Extensions All Contracts North America MN, WI, NC, VA, SC, WV, FL TX, MI, GA, CA, NY 8 years Italy Lotto, Scratch & Win N/A 9 years Colombia Baloto Caribbean, Swiss Loro, Germany Thüringen, P
Slide 20: Lottery: A Very Attractive Business
Lottery: A Very Attractive Business Steady and Consistent A Diversified IGT’s Unique easninlows Predictable, Innovation- Business Positioning Driven Growth Re: nt, and Accelerating + Low-to-mid single-digit Geographically Global footprint and Revenue-weighted global growth, diversified across full c
Slide 21: Well-Positioned for Opening of U.S. Market with Deep, Global Sports Betting Expertise
Well-Positioned for Opening of U.S. Market with Deep, Global Sports Betting Expertise 20 Years of Global Sports Betting Experience Leadership in B2B and B2C • Italy B2C experience with 1,500 points of sale and full Digital capabilities International B2B market experience with Lottery and Casino cust
Slide 22: Our Readiness has Resulted in Excellent Early Progress with Sports Betting
Our Readiness has Resulted in Excellent Early Progress with Sports Betting First-Movers IGT is ready and ideally positioned for the U.S. market: • Fully-capable and scalable technologies already adapted for the U.S. market Digital innovation in combination with Retail solutions a competitive advanta
Slide 23: Well-Positioned for Opening of U.S. Market with Deep, Global Sports Betting Expertise
Well-Positioned for Opening of U.S. Market with Deep, Global Sports Betting Expertise v 20 Years of Global Sports Betting Experience v Leadership in B2B and B2C + Italy B2C experience with 1,500 points of sale and full Digital capabilities + International B2B market experience with Lottery and Casin
Slide 24: Compelling Incremental Opportunities
Compelling U.S. Sports Betting Incremental Opportunities Brazil Gaming China Gaming Global Lottery Privatizations / Outsourcing Japan Gaming 26
Slide 25: Breadth & Depth of IGT's Offering Capitalizes on Strong Secular Trends
Breadth & Depth of IGT’s Offering Capitalizes on Strong Secular Trends Most innovative technology, driven by industry-leading R&D Largest gaming content library in the world Full suite of land-based and mobile solutions Global perspective attuned to specific, local needs Lottery Facilities Managemen
Slide 26: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
Slide 27: Alberto Fornaro, Chief Financial Officer
Alberto Fornaro Chief Financial Officer
Slide 28: Agenda
Fiscal 2018 Update Medium-Term Financial Outlook Agenda Free Cash Flow Capital Allocation Framework The Voice of the Investor 2
Slide 29: Agenda
Fiscal 2018 Update Medium-Term Financial Outlook Free Cash Flow Capital Allocation Framework The Voice of the Investor
Slide 30: 1H'18 Results: A Strong Start to the Year
1H’18 Results: A Strong Start to the Year Revenue Adjusted EBITDA +2% at constant currency and scope +9% at constant currency and scope Adjusted Operating Income • Strong contribution from gaming systems sales and sports betting Consistent global lottery same store revenue growth Growth in core busi
Slide 31: Progressive Improvement in 2017, More Stable Quarterly Profile in 2018
Progressive Improvement in 2017 Higher Profitability & More Stable Quarterly Profile in 2018 Adjusted EBITDA 442 436 428 Note: $ in millions; Double Down contributions excluded 5 452 36.1% 1Q'172Q'173Q'174Q'171Q'182Q'183Q'18E4Q'18E 412 33.6% 36.7% 35.1% 351 35.1% 32.4%
Slide 32: Recent Refinancing Activity Maintains Well-Diversified Debt Portfolio
Recent Refinancing Activity Maintains Well-Diversified Debt Portfolio Q1’18 Maturity Profile Recent tender of EUR bond 2020 maturities, financed with new 2024 EUR bond issuance Average maturity of debt is 3.8 years Balance across currencies and source market provides maximum flexibility to access bo
Slide 33: Recent Refinancing Activity Maintains Well-Diversified Debt Portfolio
Recent Refinancing Activity Maintains Well-Diversified Debt Portfolio QQ21’1’188MMaatuturirtiytyPProrofifliele Recent tender of EUR bond 2020 maturities, financed with new 2024 EUR bond issuance Average maturity of debt is 3.8 years Balance across currencies and source market provides maximum flexib
Slide 34: Strong Record of Net Debt Improvement
Strong Record of Net Debt Improvement $8,500 8,384 $8,000 Since Q2 2015, reduced Net Debt by $1 billion at constant currency despite major contract extensions: 7,806 7,781 7,530 $7,500 7,359 - - - Italy Lotto Upfront fees: $525 million, net Italy Lotto terminals: $92 million, net Italy Scratch & Win
Slide 35: Improved Full-Year 2018 Outlook
Improved Full-Year 2018 Outlook despite lower • $26 million EUR/USD FX translation impact mitigates improvements in underlying business outlook rate of 1.17) • Range reflects potential variability in timing of product sales be paid in Q4’18 9 Metric 2018 Outlook 1H’18 Results Updated View Adjusted E
Slide 36: Medium-Term Financial Outlook
Medium-Term Financial Outlook
Slide 37: Low Single-Digit Annual Revenue Growth
Low Single-Digit Annual Revenue Growth LOTTO LOTTERY GAMING International Growth Opportunity Innovative Systems Development International Market Expansion Expanding Instant Ticket Printing Better Same-Store Revenue Growth North America Gaming Improvement • Non-wager related expansion with existing c
Slide 38: Revenue Growth to Drive Stronger Profit Expansion
Revenue Growth to Drive Stronger Profit Expansion Low Single-Digit Stronger Profit Expansion Annual Revenue Growth Steady Gross Margins, with Opportunity for Improvement Low-Mid Single-Digit Lottery SSR Growth Structural Profit Improvement Plan with Identified Actions in Place Moderate Growth from G
Slide 39: Incremental Growth Opportunities
Incremental Growth Opportunities U.S. Sports Betting Brazil Gaming Global Lottery Privatizations / Outsourcing China Gaming Japan Gaming 13
Slide 40: Incremental Growth Opportunities
Incremental Growth Opportunities Us. Sports Betting Brazil Gaming Global China Lottery Privatizations / Gaming Outsourcing
Slide 41: Cash from Operations Expected to Grow from 2018 Levels
Cash from Operations Expected to Grow from 2018 Levels Neutral Net Working Capital Lower Interest Expense Completion of Large Italy Upfront Fees through 2025 Improved Profitability of Underlying Business 15 Cash From Operations
Slide 42: Entering a Period of Reduced Capital Intensity
With Most Major Contracts Secured, Entering a Period of Reduced Capital Intensity Revenue-Weighted, Average Years Remaining, All contracts: No. America: 8 Italy: 9 International: 4 Note: $ in millions; Italy CapEx translated at 1.18 EUR/USD rate. Revenue-weighted contract years remaining based on 20
Slide 43: Total Capital Expenditures to Moderate Starting in 2019
Total Capital Expenditures to Moderate Starting in 2019 Average Annual Capital Expenditures Reduced to ~$500 Successful 2016 - 2018 Lottery Renewal/ Extension Cycle million Investment in Installed Base Stabilized Gaming Business Includes up to $50 million in Annual Growth Capex Note: $ in millions;
Slide 44: Acceleration of Free Cash Flow Starting in 2019
Acceleration of Free Cash Flow Starting in 2019 2019 – 2020 Annual Adjusted Free Cash Flow of Growth in Cash from Operations Moderation in Capital Expenditures $450 - $550 million after Minority Distributions Assumes ~$200 million in Annual Minority Distributions Adjusted Free Cash Flow Methodology:
Slide 45: 2019 Capital Allocation Framework
2019 Capital Allocation Framework
Slide 46: Capital Allocation Framework
Capital Allocation Framework Uses of Adjusted Free Cash Flow: Current Dividend New Growth Initiatives Deleverage Greenfield opportunities throughout lottery and gaming Continued diversification of funding sources by type $0.20 quarterly cash dividend (~$165 million per year) Proactive management of
Slide 47: Managing the Business with Responsible ROI Targets
Managing the Business with Responsible ROI Targets Risk Premium COUNTRY RISK FINANCIAL RISK OPERATING RISK Revenue visibility Innovation potential Risk premium related to specific country Magnitude of upfront fees Relationship with authorities Currency considerations CapEx requirements Distribution
Slide 48: Managing the Business with Responsible ROI Targets
Managing the Business with Responsible ROI Targets Risk Premium Cost of Risk Adjusted Capital RISK RISK ROI Target OPERATING: FINANCIAL Innovation potential MLL) pr Risk premium related to specific country Magnitude of Relationship with authortles upfront fees Currency cone istributi considerations
Slide 49: Returning Capital to Shareholders
Returning Capital to Shareholders Dividend Share Repurchases Quarterly dividend of $0.20 per share Dividend distribution supported by: Current shareholder authorization to repurchase up to 20% of the outstanding shares, through July 2020 2018 Free Cash Flow consumed by Upfront Payments on Italy Scra
Slide 50: Italy: A History of Growth and Extraordinary Resilience
Italy: A History of Growth and Extraordinary Resilience € 500 Note: Italy macroeconomic data from FactSet; Italy EBITDA in millions using IFRS 24 IGT Italy EBITDA vs. Italy Macroeconomic Data Global Financial CrisisItaly Fiscal/Political Crisis € 800 € 7008.0% € 600 4.0% € 400 0.0% € 300 € 200-4.0%
Slide 51: Italy: A Word on Recent Gaming Restrictions
Italy: A Word on Recent Gaming Restrictions • One-third reduction in AWP machines completed in April 2018 Additional regional restrictions in 2018 Recent Dignity Decree AWP 14% • • 2017 Italy Revenue VLT 24% - Incremental taxes on gaming machines phased in over the next years Ban on all gaming adver
Slide 52: Foreign Exchange: Don't Get Lost in Translation!
Foreign Exchange: Don’t Get Lost in Translation! • EUR/USD is the only foreign exchange rate that materially impacts IG ’s income statement and balance sheet Impact of FX Translation on Reported Financial Statements if EUR Weakens: Income Statement ($) Balance Sheet ($) • 39% of IG ’s revenue and 58
Slide 53: IGT 2018 Investor Day
IGT 2018 INVESTOR DAY AUGUST 2, 2018
Slide 54: IGT 2018 Investor Day
IGT 2018 INVESTOR DAY Uewsyr 2, 20 _— @IGT
Slide 55: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
Slide 56: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Net Income Provision for (benefit from) Income Taxes Non-Operating Expenses Depreciation Amortization Amortization of Upfront Payments to Customers Stock Compensation Restructuring Expense Bad Debt Recovery Transaction Expense, Net Impairment -27 -10 156 92 116 49 1 9
Slide 57: IGT 2018 Investor Day
IGT 2018 INVESTOR DAY AUGUST 2, 2018
Slide 58: Today's Presenters
Today’s Presenters Global Lottery Expertise North America Lottery International Lottery U.S. Sports Betting Renato Ascoli Chief Executive Officer, North America Jay Gendron Chief Operating Officer, Lottery Walter Bugno Chief Executive Officer, International Fabio Cairoli Chief Executive Officer, Ita
Slide 59: Renato Ascoli, CEO, North America
Renato Ascoli CEO, North America
Slide 60: Lottery Ecosystem & Global Perspective Agenda
Lottery Ecosystem & Global Perspective Agenda Driving Growth Powering the Business
Slide 61: Considerable Organic Growth Potential Exists Worldwide
Considerable Organic Growth Potential Exists Worldwide $ Source: H2 Gambling Capital (July 2018) for GGY and Adult Population, IMF (April 2018) for GDP 3 More Room for Growth Advanced Emerging
Slide 62: Our Customers Are Focused on Growth and Innovation
Our Customers Are Focused on Growth and Innovation What are your main concerns about your business, or the challenges your business may face in the next 2-3 years? 33% Pursuing / implementing new lottery sales channels - mobile, digital, online, interactive, cashless transactions, internet gaming, n
Slide 63: Sole Company Operating Lotteries in Europe, North America, and Central & South America
Sole Company Operating Lotteries in Europe, North America, and Central & South America Unique ability to understand regulator and stakeholder needs and desires GREENLAND ALASKA ICELAND RUSSIAN FEDERATION SWEDEN FINLAND NORWAY CANADA ESTONIA LATVIA DENMARK LITHUANIA BELARUS NETHERLANDS POLAND LUXEMBO
Slide 64: All Things Lottery. All Through One Partner.
All Things Lottery. All Through One Partner. Draw-Based Games Instant Games Monitor Games i-Lottery Sports Betting Video Lottery Terminals Commercial Services 7
Slide 65: Unique Ability to Cross-Fertilize Best Practices
Unique Ability to Cross-Fertilize Best Practices OPERATOR EXPERIENCE KENO-STYLE GAMES PLAYSPOT - IN-STORE POINT OF ACCESS BUSINESS VERTICALS 8 COMMERCIAL SERVICES SPORTS BETTING INDIANA
Slide 66: IGT's Strategic Approach Leverages Key Pillars for Growth
IGT’s Strategic Approach Leverages 6 Key Pillars for Growth CONSUMER PROMOTION LOGISTICS & DISTRIBUTION INDIVIDUAL GAMES RETAIL PORTFOLIO DIGITAL Build the ideal portfolio (how many games, which price points, themes/play mechanics, refresh frequency, etc.) Optimize each individual game (prize struct
Slide 67: Driving Growth
Driving Growth Stefano Monterosso SVP, Global Same-Store Sales
Slide 68: IGT's Same-Store Sales Team Delivers Best-in-Class, Global Insights
IGT’s Same-Store Sales Team Delivers Best-in-Class, Global Insights Global team, centralized in Providence, RI, to ensure best practices and maximize cross-fertilization UNIQUE CAPABILITIES GLOBAL TEAM Copenhagen, “Global Center Great Britain Sacramento, CA Taiwan Malaysia 11 Providence, RILondon, o
Slide 69: Large, Differentiated Portfolio Satisfies Different Playing Styles
Large, Differentiated Portfolio Satisfies Different Playing Styles US MARKET BY GAME • Multi-state jackpot games, keno, and instants most significant driver foMIr growth • Market driven by content innovation, PA IL NV MD promotions, and improved player CA convenience • Proven track record, clearly i
Slide 70: Multi-State Jackpots: Continuous Game Innovation Drives Growth
Multi-State Jackpots: Continuous Game Innovation Drives Growth POWERBALL SALES ($B) change Millions further identified Note: Power Play sales have been included in sales. 13 Record $1.5BOctober Jackpot2017 $2 PowerballCA joinsMatrix$2 Mega introduced Ideas for development already 2008200920102011201
Slide 71: Successful Multi-state Innovations Are Applied to In-state Games
Successful Multi-state Innovations Are Applied to In-state Games 14 • Jackpot has never been so easy! • Bigger Prizes, Better Odds!
Slide 72: Significant Opportunity to Expand Keno
Significant Opportunity to Expand Keno DRAW GAME MARKET BY GAME SEGMENT • Keno has the potential to grow to 40% of draw-based game sales where it is offered More than half of US Lotteries are not currently offering Keno The rate of Keno adoption is accelerating (7 Lotteries have introduced it since
Slide 73: Higher Price Points are an Effective Growth Driver in Instant Games
Higher Price Points are an Effective Growth Driver in Instant Games U.S. Instant Evolution, Per Price Point ($B) 2008 – 2017 $45.3 $5 4.7% Source: Lottery sales, La Fleurs’ 2018 (data relative to FY2017) 16 $50$47.5 $45CAGR $40Total4.8% $35$20+13.7% $30$107.2% $25 $20 $32.2% $15 $10$2-3.5% $5$1-3.8%
Slide 74: Additional Themes/Play Styles Appeal to Different Player Segments
Additional Themes/Play Styles Appeal to Different Player Segments Niche instant games help sustain growth in mature markets EXTENDED PLAY GAMES: NON-PARITY Minimum Minimum 17 17 PRIZE GAMES$25 Minimum $10$10prize $40 prize $50prize $20 CROSSWORD THEME $10 $5 $2$3
Slide 75: IGT is Leading the Industry Forward With Future Game Program
IGT is Leading the Industry Forward With Future Game Program Player Needs, Future Trends Internal Approval Qualitative Test IGT Innovators at work worldwide IP Protection Shortlisting Customizing Parameters Quantitative Test Market Insights Diagnostics Ideation Funneling Research Approval Creative D
Slide 76: Consumer Promotions Reward and Support Lottery Penetration
Consumer Promotions Reward and Support Lottery Penetration in High Performing Retailers Promotions provide higher prizes or additional sets of numbers to generate player and retailer excitement GAME-SPECIFIC RETAILER-SPECIFIC 19 PROMOTIONS PROMOTIONS
Slide 77: Retailer Innovation Improves Player Convenience and Awareness
Retailer Innovation Improves Player Convenience and Awareness INCREASE CONSUMER ACCESS POINTS OPTIMIZE CURRENT CHAIN RETAILER PERFORMANCE LEVERAGE UNIQUE OPERATOR EXPERIENCE EXPAND RETAILER NETWORK Implement sales and marketing best practices to enhance retail execution, in-store lottery brand, and
Slide 78: Pursuing Clearly Identified Programs to Drive Future Growth
Pursuing Clearly Identified Programs to Drive Future Growth DRAW-BASED GAMES INSTANT GAMES • New games introduced to fill gaps in portfolio (e.g., NJ-driven Lucky for Life, CashPop, Fast Play) • Price point and theme/play mechanic mix • • • Innovative prize structures Super-sized games Niche games •
Slide 79: Powering the Business
Powering the Business Matt Whalen CTO, Lottery
Slide 80: Aurora: The Core System that Enables Innovation
Aurora: The Core System that Enables Innovation Powerful and Flexible Software Platform Stable, reliable, and high performing under virtually all conditions Six Sigma availability (99.9996%) with physical redundancy, hot backup, data centers, and networks Advanced security for maximum player protect
Slide 81: Network Communications: A Best-in-Class Solution
Network Communications: A Best-in-Class Solution 85+ Global communication networks designed and installed 130+ Conversions and/or implementations 365,000+ Points-of-Access currently deployed globally VSAT: CELL: WIRE: 172,300 retailers 127,000 retailers 66,000 retailers VSAT CABLE Internet MetroE FI
Slide 82: Touchpoints: Technology Drives Convenience and Enhanced Functionality
Touchpoints: Technology Drives Convenience and Enhanced Functionality For a Richer Player Experience Retailer Terminals Player Self-Service Mobile & Web 26
Slide 83: Convergence of Channels: Retail and Interactive
Convergence of Channels: Retail and Interactive Lottery Wagering Engagement Convenience Anonymous Players Omni-Channel Anonymous or Known Players Marketing. Loyalty & Rewards Known Players Internet Wagering Known Players IGT 2018 INVESTOR DAY 27
Slide 84: BizApps: Driving Lottery Profit Growth
BizApps: Driving Lottery Profit Growth An integrated suite of profit-driving Lottery tools created with input from customers, retailers, and the experience of IGT staff who manage lotteries, retailer networks, and lottery sales forces worldwide Performance Wizard The one-stop, dashboard-driven solut
Slide 85: $1.6B Record Powerball Jackpot: An Operational Success
$1.6B Record Powerball Jackpot: An Operational Success! $$$ $$$ $3.2 Billion In Sales 500k+ 500k+ Transactions per Minute at peak processing 81% IGT had $1.08B out of $1.3B in sales for the final drawing = 81% of all sales 15.5 million 15.5 million playslips used; equivalent of 6,127 Freedom Towers
Slide 86: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
Slide 87: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the "Company’) and
Slide 88: The U.S. has Delivered Consistent, Predictable Growth
The U.S. has Delivered Consistent, Predictable Growth $74 $73 2008-2017 $60 4.9% Source: La Fleurs’ 2018 (data relative to FY2017) 2 TOTAL LOTTERY SALES BY CATEGORY (Calendar Year, $B) 3.8% CAGR $80 $704.4% 4.6% 0.7% $50 $40 $30 $20 $10 $0 CY08CY09CY10CY11CY12CY13CY14CY15CY16CY17 InstantOther DrawKe
Slide 89: Why Lotteries Matter: An Indispensable and Growing Share of State Budgets
Why Lotteries Matter: An Indispensable and Growing Share of State Budgets More than $22 billion earned for good causes in FY2017 3% 60% Prizes to Players 30% Profits to Good Causes 5% Retailer Commissions 3% Operating Expenses 2% Vendor Fees 2017 Sales $73.5B 30% 60% Source: La Fleurs’ 2018 (data re
Slide 90: Broad Spectrum of Services Cater to Every Lottery's Unique Needs
Broad Spectrum of Services Cater to Every Lottery’s Unique Needs FM/Operator Contract Characteristics 7-10 year initial term Multiple, multi-year extension options Single provider per lottery On average, we collect 1-2% of total Lottery sales as revenue equipment (e.g., PoS self-service kiosks, etc.
Slide 91: Nearly 80% of U.S. Lottery Sales are Processed by IGT Systems
Nearly 80% of U.S. Lottery Sales are Processed by IGT Systems IGT MARKET SHARE 2017 IGT LOTTERY SERVICE CURRENT IGT U.S. FOOTPRINT 12.4% NV MD 5 REVENUES PER GAME SEGMENT Draw Sales Revenue on 40% Revenue on Instant Sales 60% (Current contracts, 2017 sales) SGI Intralot 9.5% 2017 SALES $73.5B IGT: 7
Slide 92: Many Important Contracts Secured for Several Years
Many Important Contracts Secured for Several Years Note: Data based on total 2017 lottery service contracts 6 Outcome •Revenue-weighted, average years remaining on contract portfolio is 8 years •70% of lottery service revenue is secured for 8+ years 2016 - 2018 Extensions 2016 - 2018 Wins and Renewa
Slide 93: Predictable Pipeline of Opportunities
Predictable Pipeline of Opportunities A TYPICAL BID PROCESS 2 years prior 2.5 - 3 years prior 90 - 100 UPCOMING BID OPPORTUNITIES (IGT Incumbent) (IGT Incumbent) 8 FM CONTRACTSPRINTING PennsylvaniaNew YorkMichiganFloridaNew YorkPennsylvania Originally issued inQ4 20182019Q3 2018Q4 2018Originally iss
Slide 94: Considerable Opportunity to Grow Instant Ticket Printing
Considerable Opportunity to Grow Instant Ticket Printing Contract Characteristics • More U.S. lotteries moving to multi-vendor contracts Contract length typically shorter than FM contracts Minimal Capital Expenditures associated with these contracts • • 0% 628 New Games Produced in 2017 45,000 Squar
Slide 95: Customer-First Focus Reflected in Customer Satisfaction Survey
Customer-First Focus Reflected in Customer Satisfaction Survey PEOPLE PRODUCTS SERVICES Source: IGT blended customer selection study 10 Customer Satisfaction Metric 2013 Score 2017 Score Account Development Manager 83% 95% Corporate Marketing 74% 94% Communications 86% 93% Field Service 80% 91% Oper
Slide 96: Looking to the Future
Looking to the Future Renato Ascoli CEO, North America
Slide 97: Considerable Room to Leverage the Existing U.S. Portfolio
Considerable Room to Leverage the Existing U.S. Portfolio INSTANT GAMES WILL STILL GROW MULTI-STATE GAMES CLUB KENO GAME INNOVATION SPORTS BETTING Sports betting is happening in the U.S. Successful new game introductions are leveraged across geographies. Only 20 of the 45 US Lotteries currently offe
Slide 98: Dreaming the Dream
Dreaming the Dream $800 14 SALES PER CAPITA $700 $600 $500 $400 $300 $200 $100 $0 Should the lotteries performing below Georgia’s sales per capita reach Georgia’s level, that would create an additional $64 billion in lottery sales Georgia Benchmark = $442
Slide 99: Key Takeaways
Key Takeaways Deep, Long-Standing Relationships Industry Leadership Unparalleled Scope Consistent Growth Profile Unique, Global Ecosystem Predictability of Profits 15
Slide 100: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
Slide 101: Walter Bugno, CEO, International
Walter Bugno CEO, International
Slide 102: IGT International Presence Agenda
IGT International Presence Customer Dynamics Agenda Case Studies Looking to the Future
Slide 103: International Lottery Customer Footprint
International Lottery Customer Footprint 35+ Customers Worldwide, driving $323M in 2017 Lottery Revenue Top 5 customers 47% of revenue Top 10 customers 70% of revenue Malaysia New Zealand 3 APAC 5% Thailand Singapore China EMEA 63% UK Switzerland Ukraine Germany Morocco South Africa Czech Poland Fra
Slide 104: International Lottery Customers Operate in a Complex Environment
International Lottery Customers Operate in a Complex Environment Early adopters of new technology and innovation Operate across multiple product verticals Prepared to build and operate their own platforms Competition fromregulated and unregulated B2C operators Use many technology partners Typically
Slide 105: Complexity is Demonstrated by Diverse Continuum of Business Models
Complexity is Demonstrated by Diverse Continuum of Business Models Note: Size of circles corresponds to relative 2017 revenue contribution 5 Czech Loro Colombia Republic LILHCo Trinidad & Tobago BelgiumCamelot - UKPolandJamaica FinlandSwiss Purchase Fully Outsourced Technology & Operations In-house
Slide 106: 2017 International Lottery Revenue $323M
2017 International Lottery Revenue $323M Breakdown from 35+ customers Incremental $150M+ in Non-Lottery Revenue from 16 Customers 6 Product Sales 11% Other Service Revenue 28% FM Contracts & Concessions 61%
Slide 107: Additional $150M+ of Non-Lottery Revenue
Additional $150M+ of Non-Lottery Revenue Reflects Lottery Diversification into Broader Gaming Opportunities 7 Sports Betting Mexico Belgium Greece Singapore Commercial Services Poland Czech Republic Slovakia Chile Colombia Trinidad & Tobago Jamaica Dominican Republic LILHCO Gaming / VLT Greece Swede
Slide 108: Declan Harkin, COO, International Lottery
Declan Harkin COO, International Lottery
Slide 109: IGT's Strategic Approach Leverages Key Pillars for Growth
IGT’s Strategic Approach Leverages 6 Key Pillars for Growth CONSUMER PROMOTION LOGISTICS & DISTRIBUTION INDIVIDUAL GAMES RETAIL PORTFOLIO DIGITAL Build the ideal portfolio (how many games, which price points, themes/play mechanics, refresh frequency, etc.) Optimize each individual game (prize struct
Slide 110: Revenue-Weighted Average Contract Remaining
Revenue-Weighted, Average Contract Remaining is 4 Years Existing major contracts Incremental segment business UK Lotto through Jan 2023 Trinidad & Tobago through Mar 2024 Czech Republic through Dec 2022 Jamaica Lotto through Jan 2026 Poland - iLottery Norway - iCasino New Zealand – iLottery Mexico –
Slide 111: The UK Lottery: The Largest International Customer
The UK Lottery: The Largest International Customer Top 10 performer Retail scale $9.2B 45,000 2nd Largest retail estate globally iLottery success 6Largest lottery th 25% Good performance despite being limited to traditional Draw and eInstants products Content in the world in total sales Dynamic mark
Slide 112: The UK Lottery & IGT: A 24-Year Partnership
The UK Lottery & IGT: A 24-Year Partnership From the start Retail & Distribution 24+ years IGT supplying core technology and services since creation of UK lottery Optimized High Volume and & Compact Terminals Reliability Gaming Portfolio Excellence Global reference on scale, performance and reliabil
Slide 113: The Finland Lottery is Extremely Sophisticated
The Finland Lottery is Extremely Sophisticated High performer Pioneer in Interactive $3.5B Highest gaming per capita in Europe at $550 50% Early adopter – iLottery since 1996 End-to-End offering Player insights All verticals Active in all gaming segments and channels Technology savvy 2M 2M+ register
Slide 114: The Finland Lottery & IGT: A 30-Year Partnership
The Finland Lottery & IGT: A 30-Year Partnership Long Partnership Portfolio Expertise 30 years Deeply integrated technology partner 70+ Experts supporting Veikkaus Reliability Digital 99.9+ % Segment Growth Design Partner IGT platforms enabled rapid iLottery growth Consistently leverage Advanced Ret
Slide 115: Caribbean: Multiple Jurisdictions & Full Service Business Models
Caribbean: Multiple Jurisdictions & Full Service Business Models • Long-term lottery contracts with 9 different island governments; average 15-year terms remaining Long term • IGT is either the Operator or provides an extensive set of Facilities Management Services 15 years Average remaining contrac
Slide 116: The Caribbean Lotteries & IGT
The Caribbean Lotteries & IGT IGT has strong ability to build Portfolios and execute growth plans Super Lotto: IGT developed and operates the only multi- jurisdiction lottery game in the region Core numbers game Innovations and promotions have contributed 31% revenue increase in last three years Inc
Slide 117: Considerable Organic Growth Potential Exists Worldwide
Considerable Organic Growth Potential Exists Worldwide $ Source: H2 Gambling Capital (July 2018) for GGY and Adult Population, IMF (April 2018) for GDP 18 More Room for Growth Advanced Emerging
Slide 118: International Lottery Pillars for Growth
International Lottery Pillars for Growth Growth Aurora, product upsell, Value Chain lottery segment – 19 Defend & Build Extend contracts Regional and jurisdictional needs vary with maturity curves Same Store Constantly optimize and innovate for core Games, draw, multijurisdictional games, Instants,
Slide 119: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
Slide 120: Fabio Cairoli, CEO Italy; Marzia Mastrogiacomo, SVP Italy Lotteries
Fabio Cairoli CEO, Italy Marzia Mastrogiacomo SVP, Italy Lotteries
Slide 121: Market and Company Highlights Agenda
Market and Company Highlights Key Success Drivers Agenda Looking to the Future
Slide 122: Italy: A Large and Diverse Gaming Market
Italy: A Large and Consistent growth despite financial and political headwinds Diverse Gaming Market Regulation and product innovation drive growth Italy Gaming Market Wagers (B€) Interactive (Casino) 102 VLT 96 Interactive Betting & Other VLT AWP Lotteries 48 2 1 2004 YoY 2005 14.9% 2006 23.7% 2007
Slide 123: IGT Participates in All Gaming Market Verticals
IGT Participates in All Gaming Market Verticals, but Concentrated in the Most Resilient Italian Gaming Market Wagers (2017) IGT Wagers (2017) Interactive Betting & Other Lotteries Interactive 6% 18% 19% VLT 19% 102B€ 29B€ 15% Lotteries Betting & Other 58% 25% AWP 14% 23% AWP VLT 4
Slide 124: IGT is the Undisputed Leader of the Italian Lottery Market
IGT is the Undisputed Leader of the Italian Lottery Market Healthy trend despite growth in other Gaming verticals IGT commands >90% of total Lottery wagers Italian Lottery Market Wagers 19 (B€) 19 19 18 18 18 18 2006 2007 2008 2009 2010 2011 2012 2013 2014 20152016 2017 Draw Games (IGT) Instant Lott
Slide 125: Italy's Lotteries are Among the Biggest in the World
Italy’s Lotteries are Among the Biggest in the World; IGT’s Contracts Secured for 9 Years World Ranking Per Capita Ranking Points of Sale Players Duration Instant Lotteries IGT-operated since 2004 Renewed through September 2028 15 million 63k #1 #10 IGT-operated since 1994 Renewed through November 2
Slide 126: Unique, End-to-End Model
Unique, End-to-End Model Operational expertise & B2C capabilities enable global cross-fertilization R&D Operations Sales & Marketing Product development and innovation Product and technology deployment Locally driven, leveraging centralized shared services/Group resources Technology Customer service
Slide 127: Key Drivers of Our Success
Key Drivers of Our Success Effective strategies in four critical disciplines that leverage the entire value chain Combining local knowledge with global expertise Leveraging the breadth and depth of the multi-offer, B2C Italy franchise • • • Consumer Knowledge Product Innovation Technology Vision & E
Slide 128: State-of-the-Art Consumer Segmentation Drives Long-Term Vision
State-of-the-Art Consumer Segmentation Drives Long-Term Vision and Marketing Plans Lottery Games Appeal to Diverse Consumer Segments “My lucky day” Passionate Passionate Have fun Get lucky Adrenaline One shot Routine Selective Self-focused Amusement Be engaged Take a whim Self-focused Innovative Tra
Slide 129: Breakthrough Innovation: 10eLotto Drives Turnaround of Lotto Wager Trends
Breakthrough Innovation: 10eLotto Drives Major Turnaround of Lotto Wager Trends B€ 8.1 10eLotto Wagers Leveraging the IGT Franchise • Keno-style games (Greece, US) Targeted Player Segments • Passionate, Routine Key Consumer Insight • Frequency, engagement, higher reward Key Element • Draw every 5 mi
Slide 130: Leveraging the Franchise with Compelling Product Extensions
Leveraging the Franchise with Compelling Product Extensions B€ Opzioni Oro 10eLotto 8.1 Leveraging IGT Franchise • Bullseye (US) Targeted Player Segments • Passionate, Routine, and Self-focused Key Consumer Insight • Winning frequency, second chance Key Element • Additional chance, doubling the bet
Slide 131: Recent Draw Game Innovation
Recent Draw Game Innovation Enlarging our portfolio with new games targeting incremental player segments and wagers Launched February 2018 Key Objective • Increase penetration through a new proposition Targeted Player Segments • Traditional and Passionate Key Consumer Insights • Accessible dream Pos
Slide 132: Building the World's Largest Instant Ticket Lottery
Building the World’s Largest Instant Ticket Lottery Tremendous Growth from Exploiting Several Powerful Levers: • Distribution: from 24k to 64k PoS 9.4 9.3 9.3 9.1 9.0 9.0 8.9 • Price Point: introducing 5€, 10€, 20€ • Effectively leveraging Pay Out • Innovation: building core franchises • “Miliardari
Slide 133: Continuous Innovation and Successful Portfolio Management
Continuous Innovation and Successful Portfolio Management Innovation Global cross-fertilization & local knowledge New Multiplier Family: Wagers B€ • Engaging experience by multiplying prizes Battleship: • Extended-play deployed with local insight Revitalizing Core Franchises Miliardari relaunch: • E
Slide 134: Leveraging Technology Vision & Execution to Deliver Rich Player Experiences
Leveraging Technology Vision & Execution to Deliver Rich Consumer behavior drives technology evolution Player Experiences Player-centric strategy across multiple, interconnected touch points Mobile • • • On-the-Go consumption Dedicated Lotteries App Connected with both website and PoS devices Websit
Slide 135: Distribution Excellence While Driving Digital Evolution
Distribution Excellence While Driving Digital Evolution Dedicated Sales Force Impactful Retail Presence Partnership with Stakeholders Technology & Digital Evolution 40k Lotto terminals 67k Point of Sales 34k 10eLotto monitors 102 sales agents Italian Tobacconist Association Self-Service prototype >5
Slide 136: Digital Relationships with PoS Driving Higher Ticket Sales
Digital Relationships with PoS Driving Higher Ticket Sales and Delivering Tangible Efficiencies 62k PoS registered Lottery Web Portal Orders (€M and % of Total) Jun ‘18 74% 50k average monthly users 1,800 1,600 1,400 1,200 2.5 million page views/month 1,000 800 600 400 200 0 +0.5%-1% S&W sales uplif
Slide 137: Digital Relationships with PoS Driving Higher Ticket Sales
4,800 4,600 4,200 4,000 ee | a B2B Webportal services _-_sff i + Instant Lotteries orders & supply chain Digital Relationships with PoS Driving Higher Ticket Sales and Delivering Tangible Efficiencies Lottery Web Portal Orders (€M and % of Total) Q3 Q4 Qt A203 A4 a1 Q2.A3.Q4 QI QZaasatag —*_‘TAining
Slide 138: Lotteries: A Very Attractive Business
Lotteries: A Very Attractive Business Continuous Product Innovation Retail Network Management Digital Readiness • Management and revitalization of current portfolio Incremental innovation leveraging consumer insights and global footprint Increase digital penetration • Protect current network size Im
Slide 139: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
Slide 140: Charles Cohen, VP, PlayDigital Sports Betting
Charles Cohen VP, PlayDigital Sports Betting
Slide 141: There is No Such Thing as "The" U.S. Sports Betting Market
There is No Such Thing as “The” U.S. Sports Betting Market
Slide 142: There Could Be (at Least) Fifty
…There Could Be (at Least) Fifty AK WA ME ND MT OR MN VT NHMA ID WI NY PA SD NE KS MI WY RI CT IA NJ NV OH DE UT IN IL CA WVVA NC MD CO DC MO KY TN AZ OK AR SC GA NM AL Im MS 28 States TX LA Sl FL In HI Fast adopters (2 years) Slow adopters (5 years)
Slide 143: How Big Will "It" Be? Place Your Bets Please
How Big Will “It” Be? Place Your Bets Please Selected Annual Gross Win Forecasts 4
Slide 144: Our Customers See Sports as an Incremental Revenue Opportunity
Our Customers See Sports as an Incremental Revenue Opportunity Capture Lost Spend Increased Visitation More “Action” Much of the revenue for sports betting will come from consumer spend currently occurring at offshore sites – not from other legal gaming activities. Customers believe that by integrat
Slide 145: What's the Key to B2B Success?
What’s the Key to B2B Success?
Slide 146: What's the Key to B2B Success?
What's the Key to B2B Success? 2018 INVESTOR DAY
Slide 147: Adaptability to the Customer
Adaptability to the Customer Monopoly Open 8 Omni-channel Retail only Desktop Mobile Statewide Retail Off Property Mobile On Property Mobile On Floor Retail On Property StateFixed #All legalUnrestricted Lotterylocationslocationslicensing MS RI DE NJ PA WV NV
Slide 148: Adaptability to the Regulations
Adaptability to the Regulations people and corporate oduct 9 Omni-channel ensing ertification r integration Retail only MonopolyOpen For each State Product Certification to local tech standards Licensing Risk control to comply with Wire Act Sports system hosted in State Tax and reporting to each aut
Slide 149: IGT's Adaptability in Action: Platform as a Service
IGT’s Adaptability in Action: Platform as a Service Old way 11 Feed Traders System W riters Stand-alone installations for each book High capex, longer lead time New way Properties Properties Data SpokeSpoke Traders “Platform As A Service” “Spoke” system per State, National “Hub” Lower per-customer c
Slide 150: IGT's Adaptability in Action: Platform as a Service
IGT’s Adaptability in Action: Platform as a Service Old ay ee Properties _@ & & “e _ RRA BRR RRR RRR Stand-alone installations for each book High capex, longer lead time + IGT. Properties ooo RRA oom BRA ooo RRA oa oon E> / 2aR oo | =| {fe} RRA \ VA A \ eae Traders R22 “Platform As A Service” “Spoke
Slide 151: 4-year head start
4-year head start When IGT first engaged in the U.S. sports betting market as a supplier 13
Slide 152: $12,000,000,000 bets processed by IGT sports betting solutions in 2017
$12,000,000,000 Estimated value of bets processed by IGT sports betting solutions worldwide in 2017 14
Slide 153: Proven Record of Global Deployment
Proven Record of Global Deployment Toto , tJ!I J GQS A Proncisticos• iJUEGATELA CON MEXICO! --SANTACASA VEIKKAUS WESTOLOTTO PADDYPOWER. SINGAPORE tv>$ •.••••••••onan ••• " Chaque jour est une chance. P 0 0 L S ft iGT 2018 INVESTOR DAY 1s SPORTSTAKE
Slide 154: What is IGT Bringing to the Market?
What is IGT Bringing to the Market?
Slide 155: Technology to Run the Whole Sports Betting Enterprise
Technology to Run the Whole Sports Betting Enterprise In-Play Pari-Mutuel Fixed Odds Pre-Game Kiosks/SSBT’s Display boards & IP TV Lottery Web POS Mobile 17 Content Control Betting Promotions Player profiling Automated Risk Control Centralized Trading Betting Events management Derivatives engine
Slide 156: Flexible Mobile and Digital Experiences
Flexible Mobile and Digital Experiences Differentiation by design Superior In-Play experience Loyalty integration On-Premise and Statewide 18
Slide 157: Solutions Tailored for the U.S. Environment
Solutions Tailored for the U.S. Environment Quick bet kiosks EGM integration Bartop & Tablet Next Generation Parlay/Coupons Flexible POS options Casino system and Title31 19
Slide 158: What's IGT's Business Model for U.S. Sports Betting?
What’s IGT’s Business Model for U.S. Sports Betting?
Slide 159: We Do Not Compete with Our Customers
We Do Not Compete with Our Customers 21
Slide 160: Three B2B Opportunities are Emerging Along the Value Chain
Three B2B Opportunities are Emerging Along the Value Chain Managed Services Fully Outsourced Self Managed 23
Slide 161: "Self Managed" Customer Offer
“Self Managed” Customer Offer Technology Platform Typical Commercial Structure • • • • • % share of net win In-Store equipment sale/lease Setup fee (once per State) Upsell: professional services 3 – 5 year terms 24 Live Customers Offer to Customers •IGT Sports “Platform As A Service” hosted in each
Slide 162: "Managed Service" Customer Offer
“Managed Service” Customer Offer Technology Platform Trading and Risk Management Typical Commercial Structure • • • • % share of net win Sale/Lease in-store equipment Upsell: professional services 3 – 5 year terms 25 Announced Bids Offer to Customers •IGT Sports “Platform As A Service” hosted in eac
Slide 163: "Fully Outsourced" Model
“Fully Outsourced” Model Technology Platform Trading and Risk Management Marketing, Operations Typical Commercial Structure • IGT’s relationship is with the B2C provider % share of net win to IGT for technology provided. Upsell: professional services • • 26 IGT Offer to customers •Technology platfor
Slide 164: Recurring Revenue with Upside for IGT
Recurring Revenue with Upside for IGT Sports Platform Retail Equipment Added Value Setup Fee • Setup fee based on training and integration requirements • On-going platform fee as share of revenue after tax • Sale or lease (daily fee) • Professional Services Marketing support • 27
Slide 165: Recurring Revenue with Upside for IGT
Recurring Revenue with Upside for IGT Setup Fee Retail Equipment * Setup fee based * On-going platform « Sale or lease * Professional on training and fee as share of (daily fee) Services integration revenue after tax 4 ¢ Marketing support requirements 8 INVESTOR DAY
Slide 166: MGM Live Deployments
MGM Live Deployments Nevada - 2016 New Jersey – June 2018 Mississippi – 1st August 2018 29
Slide 167: FanDuel Partnership
FanDuel Partnership • Largest database of active sports players in the U.S. for daily fantasy sports New Jersey online casino (BetFair brand currently) Partnership with Meadowlands for NJ and NY Expansion planned for West Virginia in 2018 • • • 30
Slide 168: Key IGT Sports Betting Takeaways
Key IGT Sports Betting Takeaways Readiness B2B Adaptability 31
Slide 169: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
Slide 170: Marco Sala, Chief Executive Officer
Marco Sala Chief Executive Officer
Slide 171: Compelling Characteristics of the Global Lottery Business: Growth
Compelling Characteristics of the Global Lottery Business: Growth Steadily Growing Industry Innovation Drives Growth in “Supply-Driven” Market Opportunity for Out-Sized Growth • Low-to-mid single-digit global same-store revenue growth over last decade Expected to be maintained for next 3-5 years • I
Slide 172: Compelling Characteristics of the Global Lottery Business: Predictability
Compelling Characteristics of the Global Predictability Lottery Business: Highly Predictable and Resilient Revenues Majority of Current Contract Portfolio Secured for Several Years Attractive Return on Investment and Cash Flow • • • Italy: 9 years North America: 8 years International: 4 years • • •
Slide 173: IGT's Competitive Advantages
Compelling Characteristics of the Global Lottery Business: IGT’s Competitive Advantages History of Successful Innovation Driving Growth Positioned to Continue Leading the Industry Forward Leading Operational Expertise • • As operator (B2C) As technology/service provider (B2B) • Proprietary Same-Stor
Slide 174: The Leader in Regulated Gaming Solutions in Growing Global Markets
The Leader in Regulated Gaming Solutions in Growing Global Markets Operate in growing global markets with secular tailwinds Balance and diversity of business, including competitive advantage of being both an operator and supplier, provides resilience and low risk profile Growth fueled by innovation,
Slide 175: IGT 2018 Investor Day
IGT 2018 INVESTOR DAY AUGUST 2, 2018
Slide 176: Cautionary Statement Regarding Forward-Looking Statements
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 International Game Technology PLC and its consolidated subsidiaries (the “Company”) and
International Game Technology — Investor Day (August 2018) on 6ix