Inspired Entertainment, Inc. · NASDAQ:INSE

Inspired Entertainment — Investor Presentation (August 2023)

38 slides from Inspired Entertainment's investor presentation, Aug 10, 2023

  1. Slide 1: Investor Presentation

    ~, INVESTOR PRESENTATION ] N SPIRED August2028 SENT

  2. Slide 2: Safe Harbor / Non-GAAP Financial Disclosures

    Safe Harbor / Non-GAAP Financial Disclosures Forward-Looking Statements ‘The presentation isles farvardaoing statements with the meaning of the rate SenuresUitation Reform Atf HS, Thes award ooking statement sud, but are ot edt cates rqerding our business strategy ps and abjectes an ur expected or c

  3. Slide 3: Inspired Entertainment is a leading B2B provider of gaming content, systems and solutions

    Inspired Entertainment, Inc. is a leading B2B provider of gaming content, systems and solutions across online/mobile and retail channels around the world which predominantly generates recurring revenues pursuant to long-term contracts. Experienced developer of differentiated and entertaining iGaming

  4. Slide 4: Proven and Experienced Management Team

    Proven and Experienced Management Team Lome Weil Brooks Pierce Stewert Baker Carys Damon President end Chief Executive Executive Vice President and Executive Vice President and Gaal Exeoutive chelimnan officer Chief Financial Officer General Counsel f c. Chairman of the Board & Aristocrat, Scientifi

  5. Slide 5: Investment Highlights

    Investment Highlights we A leading omni-channel B2B gaming provider with recurring revenue through long-term contracts Growth potential in content-driven Interactive and Virtual Sports segments Resilience of land-based channels through all economic Er <= chil cycles OW Margin expansion and declining

  6. Slide 6: Content Driven Gaming Systems

    4 v Content Driven Gaming Systems {NSPIRED — High-growth, capital efficient Strong recovery following VIRTUAL SPORTS COVID-19 retail reopening INTERACTIVE GAMING Venues. 4, SIGNIFICANT ENTUM IN NORTH AMERIC INSPIRED 6

  7. Slide 7: Long-Term Growth Drivers

    Long-Term Growth Drivers = Growth in Virtual Sports and Interactive businesses = Recent launches - Pennsylvania and Michigan iGaming, Ontario iGaming & Online Virtuals, DC Lottery Retail & Online Virtuals, Netherlands iGaming « Agreement to develop Virtual Sports content through NFL license = Expand

  8. Slide 8: Content Creation is Core Competency

    Content Creation is Core Competency Proven track record for creating engaging games for regulated gaming, betting, lottery, social and leisure operators ss-Channel Approach y Works Across Product Portfolio j = — Highly synergistic land-based and online/mobile operations (m=) = Player recognition of

  9. Slide 9: Significant Momentum in Online Channels

    Significant Momentum in Online Channels Interactive and Virtual Sports continue to grow in new, emerging and core markets iGAMING ; Yee ES ‘Oranouer forium awl RESORTS paripby .,,.4 © ssc « REL. iLOTTERY sky REE Lottoland >k kinarea Es Harrahs -~ ae I 2020 wu © FANDUEL Beaming” VIRTUAL = SPORTS ‘FSi

  10. Slide 10: Virtual Sports

    VIRTUAL SPORTS A pioneer and leader in Ultra-HD games that create an always-on sports wagering experience Continual stream of ultra-realistic player simulations and a wide breacth of bet types Cross-over product between sports betting and casino gaming Largest portfolio - baseball, basketball, footb

  11. Slide 11: Interactive

    INTERACTIVE Online gaming operators use our top-performing game titles worldwide High-growth potential, high-margin recurring revenue business = Gaining share from the launch of new content across the estate, growth in the customer base in new, emerging and core markets and increased promotional act

  12. Slide 12: Gaming

    GAMING = Gaming growth shifting from large casinos to many distributed venues = A leading supplier of server based gaming terminals to betting shops = Providing content on a distributed basis, allowing access to a wide footprint through internet and proprietary networks = 35,000 machines = Top games

  13. Slide 13: Leisure

    LEISURE = Aleading supplier of server based gaming terminals and pay-to- play entertainment products to pubs, arcades, motorway service areas and holiday resorts in the UK = Ability to leverage top performing content across platforms = — Potential for digital transition to drive improved economics M

  14. Slide 14: Investment Highlights

    Investment Highlights A LEADING OMNI-CHANNEL B2B GAMING PROVIDER WITH RECURRING REVENUE THROUGH LONG-TERM CONTRACTS + Aleading presence in the UK Greece and italy with significant momentum in North America = Combination of strong technology and top-performing content drive over 80% recurring revenue

  15. Slide 15: Market Capitalization

    Market Capitalization (unaudited) Actual (US$ in millions, except per share data, 6I30/23 Cash $42 Senior Secured Notes'" 299 Finance Lease Liabilities 3 Total Debt $302 Net Debt $260 Diluted Shares Outstanding” (in millions) 28.196 Share Price (As of market close August 8, 2023) $13.36 Equity Marke

  16. Slide 16: Appendix

    <4, “ ees INSPIRED ° Appendix

  17. Slide 17: Summary of Q2 2023 Segment Performance

    Summary of Q2 2023 Segment Performance ‘Three Months Ended June 30, 2023 ‘Curacy Functional ‘Three Months Ended Reported Movement Currey June 20, Variance 2023" Variance (nS millions) 2023 20 % s % Total Revenwe Gaming (ez. Low Margin Gaming faa) $255 6% se.) % Hardware Sales) ‘Virtua Sports 150 140

  18. Slide 18: Non-GAAP Reconciliation: Q2 2023 Adjusted EBITDA by Segment

    Non-GAAP Reconciliation: Q2 2023 Adjusted EBITDA by Segment ira Gaming __Sports__Interactive Leisure __Corporate___Total (in mtions) ‘Net income (loss) $ 548 es 268 318 G08 ai ‘tems Relating to Discontinued Activities Pension charges = = = - 02 02 Stack-based compensation expense 04 02 o1 os 24 32 D

  19. Slide 19: Non-GAAP Reconciliation: Q2 2022 Adjusted EBITDA by Segment

    Non-GAAP Reconciliation: Q2 2022 Adjusted EBITDA by Segment ira Gaming __Sports__Interactive Leisure __Corporate___Total (in mons) ‘Net income (loss) SACs ES ESS SIS 12. ‘Items Relating to Discontinued Activities Pension charges = = = - 03 03 ‘Items outside the normal course of business: ‘Acquisitio

  20. Slide 20: Non-GAAP Reconciliation: YTD 2023 Adjusted EBITDA by Segment

    Non-GAAP Reconciliation: YTD 2023 Adjusted EBITDA by Segment ira Gaming __Sports__Interactive Leisure __Corporate___Total (in mtions) Net income (oss) $ 05S 258 478 14 8 G6HS 39 ‘tems Relating to Discontinued Activities Pension charges = = = - 05 05 ‘Items outside the normal course of business ‘Coat

  21. Slide 21: Non-GAAP Reconciliation: YTD 2022 Adjusted EBITDA by Segment

    Non-GAAP Reconciliation: YTD 2022 Adjusted EBITDA by Segment Gaming __Sports__Interactive Leisure __Corporate___Total (in mons) ‘Net income (loss) SRS IOS DS SOAS 84 ‘Items Relating to Discontinued Activities Pension charges = = = - o4 04 ‘Items outside the normal course of business: ‘Acquisition an

  22. Slide 22: Non-GAAP Reconciliation: Q2 2023 Pro-Rated Segment

    Non-GAAP Reconciliation: Q2 2023 Pro-Rated Segment Adjusted EBITDA Contribution ‘Three Months Ended June 30, 2023 ‘Virtual Corporate Gaming Sports, Interactive, _Leisure_ Functions _Total (Go millions) Total revenne s 315 §_ 15.6 $ 74 _$ 265 $ — 8 804 Segment #6 of Total Revere 35,786 19.796 9.7% 34

  23. Slide 23: Non-GAAP Reconciliation: Q2 2022 Pro-Rated Segment

    Non-GAAP Reconciliation: Q2 2022 Pro-Rated Segment Adjusted EBITDA Contribution 4 Total revenne Segment $6 of Total Reverse Adjusted EBITDA Corporate allocation Three Mor Segnent-level Adjusted EBITDA including pro-rated corporate allocation Segment Contribution to Adjpsted EBITDA (0) corporate aloc

  24. Slide 24: Non-GAAP Reconciliation: YTD 2023 Pro-Rated Segment

    Non-GAAP Reconciliation: YTD 2023 Pro-Rated Segment Adjusted EBITDA Contribution ‘Six Months Ended June 3 ‘virtual Corporate Gaming Sports, Interactive, _Leisure_ Functions _Total (Go millions) Total revenne s 589 $299 $ 140 _$ 436 8 — 8 1464 Segment $6 of Total Reverse 38.496 1086 99% 30.796 100.0%

  25. Slide 25: Non-GAAP Reconciliation: YTD 2022 Pro-Rated Segment

    Non-GAAP Reconciliation: YTD 2022 Pro-Rated Segment Adjusted EBITDA Contribution ‘Six Months Ended June 3 ‘virtual Corporate Gaming Sports, Interactive, _Leisure_ Functions _Total (Go millions) Total revenne s 496 $256 $ 111 _$ 456 8 —$ 1319 Segment #6 of Total Revere 37.696 19.8% 84% 34.655 100.0%

  26. Slide 26: Overall Company Results

    Overall Company Results Fer he Three-Month Period ended Varince mations) Soe, _ Sue 23 ve2022 "Varies Atuiutbie w Varlanos ova Functional Total Functional Total Reporied 2023 om Currency Movement ccuracy bass ‘currency Variance 9 ‘Variance 90 Revenue: Seavioe 5 ers wees ons 35 a om Peodct 123 63 oy

  27. Slide 27: Overall Company Results

    Overall Company Results Months Ended June 30, 2023 iy ms) 7023 ve 2022 Vainnee Auabanibi w Varlines ova Fanetonal Tot Funetinal Cuvency Tor Repored 2008 2022 Currency Movement ccuracy bass Varizree ‘Variance 96 Revenue: Seavioe S64 $s mies EDs 107 oe % Peodct 200 401 on 107 16% 90% Totalrevenue M64

  28. Slide 28: Gaming, Key Performance Indicators

    Gaming, Key Performance Indicators jonths Ended June 30, 2023 ‘Three and Six For the Three-Month For the Six-Month Period ended Variance Period ended Variance Tune, June 30, 2023 vs 2022 Tune30,—Juneso, 2023 vs 2022 Gaming 2023 72022 % 72023, 72022 % End of period installed base (# of terminals) ® 3

  29. Slide 29: Gaming, Service Revenue by Region

    Gaming, Service Revenue by Region ‘Three and Six Months Ended June 30, 2023 For the Three- For the Six-Month, ‘Month Period ended Period ended June30, June 30, Variance Tune 30, - June 30, Variance Total Total Functional ‘Functional Currency Currency (ha mtions) 203 _ 2022 2023 v5 2022 6 2023 2022 _

  30. Slide 30: Gaming, Results of Operations

    Gaming, Results of Operations vito) “Variceal to Veviancoons Functonal Tval Functional Conensy Ton Rponed 2m 202 Cunency Movement fcurreny baa ‘Variane 8 Varane 8 even: Saree 5 ss wes ons 03 2% 1% Prost 13 33 a 55 100% 23% Totalrvene Ed 7s 02 62 2400 2406 Costof Salessexchding depreciation ‘nd senta

  31. Slide 31: Gaming, Results of Operations

    Gaming, Results of Operations 4 si Months Ended June 30, 2023 vito) Tinie a Varnes Mutoh w Varios Funedenal Teal Functional Comensy Toad Report am __2m Cosmency Movement curency hase ‘Varun ‘Yaron 86 even: Saree sas ars ans 14 o% ox Prost 29 29 9 103 12% ey Totalrvene ‘29 6 ea) 133 7586 199% costo S

  32. Slide 32: Virtual Sports, Key Performance Indicators

    Virtual Sports, Key Performance Indicators ‘Three and Six Months Ended June 30, 2023 For the Three-Manth For the Six-Mont Poriod ended Variance Period ended Variance Time, Jme, 7023 vs 202 Tes, June 20, 7023 v5 2002 2023 2022 on 2023 2022 % Virtuals No, of Live Customers at the end of the peniod 58

  33. Slide 33: Virtual Sports, Results of Operations

    Virtual Sports, Results of Operations 4 For tke Thee-Momth the SM Perna ended Variance Perbd end Variance vito) Tae iene, FIEITEI Tac, Joe EITED Variance Toni ‘Variance Tord Variance ona Funedonal Total arince ona. Funethnal Total Aeuibtable Funedonal Cerency Reperted Ateibwtble FuneGonal Careney)—

  34. Slide 34: Interactive, Key Performance Indicators

    Interactive, Key Performance Indicators jonths Ended June 30, 2023 ‘Three and Six For the Three-Month For the Six-Month, Period ended. Variance Period ended Variance Tune 30, —_June 30, 2023 vs 2022 Tunes, lune 30, 2023 vs 2022 72023, 72022 % 72023, 2022 % Interactive No. of Live Customers at the en

  35. Slide 35: Interactive, Results of Operations

    Interactive, Results of Operations For the SixAfomdh Verioce Perind ended Yorines Grmition) Toss 0 Tae, toe, Toes Variance Ton Varnes Tord Variance ona Functional Total Variance ona Functional Tota Atribetahle Funetbral ‘Currency Reported Atrbtahle Fwsetional‘Curreney Reported te Curreney currency V

  36. Slide 36: Leisure, Key Performance Indicators

    Leisure, Key Performance Indicators ‘Three and Six jonths Ended June 30, 2023 For the Three-Manth For the Six-Month Period ended Variance Period ended Variance Tne%, June 3 2023 v5 2022 Tuneso, June 0, 2023 v52022 2023 2022 % 2023 2022 % Leisure End ofperiod insalled base Gaming machines ¢#of termin

  37. Slide 37: Leisure, Results of Operations

    Leisure, Results of Operations he Sr vito) EIEITEIEY Eat joe PETES Variance Toad Variance Toad Variance oma Functional Toil Varinoe oma Functbval Toil AraBivabe Function] Cumeney—Reperted AtwBivtable Functional Currency Reported feCurency curewy Yariacce Varhnce fe Currency cureney Variance Yarance

  38. Slide 38: Any questions?

    Any questions: ~~ > 646-277-1285 INSPIRED ESSENTIAL ENTERTAINMENT

Inspired Entertainment — Investor Presentation (August 2023) on 6ix