EX-99.2 47 q320earningsslidedeck.htm EX-99.2 q320earningsslidedeck
International Game Technology 2020 Third Quarter Results Period ended September 30, 2020 November 12, 2020 1


 
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 other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “would,” “should,” “shall”, “continue,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward- looking statements include (but are not limited to) the factors and risks described in the Company’s annual report on Form 20-F for the financial year ended December 31, 2019 and other documents filed from time to time with the SEC, which are available on the SEC’s website at www.sec.gov and on the investor relations section of the Company’s website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company’s business. Nothing in this presentation is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance of International Game Technology PLC, as applicable. All forward-looking statements contained in this presentation are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement. Comparability of Results All figures presented in this release are prepared under U.S. GAAP, unless otherwise noted. Non-GAAP Financial Measures Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Consolidated Adjusted EBITDA represents net income (loss) (a GAAP measure) before income taxes, interest expense, foreign exchange gain (loss), other non-operating expenses, depreciation, impairment losses, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of on-going operational activities. For the business segments, Adjusted EBITDA represents segment operating income (loss) before depreciation, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Adjusted net (loss) income attributable to IGT PLC represents Net (loss) income attributable to IGT PLC before foreign exchange, purchase accounting depreciation and amortization, restructuring expenses, loss on extinguishment of debt and certain other non-recurring items. Adjusted Diluted EPS represents Adjusted net (loss) income attributable to IGT PLC per weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the IGT PLC share-based payment awards, when inclusion is not antidilutive. Other non-recurring items are discrete, infrequent in nature and are not reflective of on-going operational activities. Management believes that the non-GAAP measures just mentioned are useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance. Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus cash and equivalents. Cash and cash equivalent are subtracted from the GAAP measure because they could be used to reduce the Company’s debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet. Free cash flow is a non-GAAP financial measure that represents cashflow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing IGT’s ability to fund its activities, including debt service and distribution of earnings to shareholders. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. 2


 
Agenda Business 1 Marco Sala, CEO Update Financial 2 Max Chiara, CFO Results 3 Q&A 3


 
Business Update 4


 
Q3’20: Resilience of Portfolio, Strong Execution on Full Display Results bolstered by breadth of offer and diverse, global reach • Strongest Lottery same-store sales growth in seven quarters • Digital & Betting revenue up 41%, including over 70% increase from B2B activities Protected profits with disciplined operational management • $375 million temporary cost savings/avoidance delivered YTD • On track to achieve $500 million target Robust Q3’20 cash flow generation contributing to YTD performance of: • $610 million in cash from operations • $384 million in free cash flow Proven ability to drive operational leverage/cost flexibility to manage through pandemic; well positioned to benefit from a global market recovery 5


 
New, Simplified Organizational Structure Enhances Growth Potential • Enables greater responsiveness to customers and players Global Lottery • Increases effectiveness and competitiveness in each segment Led by Fabio Cairoli • Harmonizes best practices in each product category • Increases organizational efficiency by leveraging economies of scale Global • Improves market understanding of segment performance Gaming Led by Renato Ascoli • Reduces complexity to support IGT’s intrinsic value 6


 
Lottery Consistently Provides Stability to Quarterly Revenue and Profit Revenue and Adjusted EBITDA(1) Indexed to Q1’19 • Q3’20 revenue and profit demonstrate 50% Recovery to swift improvement vs. Q2’20 30% Q1’19 level 10% • Global Lottery -10% • Substantial resilience and contribution throughout pandemic -30% • High profit flow-through of strong -50% SSS growth evidenced in Q3’20 -70% results -90% • Global Gaming -110% • Impact of pandemic more severe, -130% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 as expected Lottery Revenue Lottery Adj. EBITDA • Sequential improvement as Gaming Revenue Gaming Adj. EBITDA venues reopen Indexed: Base 0 in Q1’19 (1) Non-GAAP measures; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details 7


 
Lottery: Robust Player Demand Drives Acceleration in Growth Global same-store sales increased 9% in Q3’20 • Double-digit growth in North America • Continued recovery in Italy Long-term growth profile fueled by several drivers • New games • Portfolio optimization • Price upselling • Improvement of prize structures • Expanded distribution Strengthened industry leadership • Awarded 7-year contracts with Poland and Nebraska Lotteries • New York Lottery contract extended to August 2022 8


 
Gaming: Encouraging Player Demand Trends, Product Portfolio Strength Sharp, sequential improvement from Q2’20 levels • Encouraging player demand trends • Progressive activation of installed base • Productivity of activated wide area progressive machines remains solidly above prior-year levels Product portfolio highlights: • Three spots on the “Top 20 Most Innovative Gaming Technology Awards,” more than any other supplier • Momentum with electronic table games • Award-winning cashless solutions gaining traction . IGT is the only casino management system provider with a fully- integrated cashless solution incorporating external funding capabilities . Solid pipeline of upcoming cashless implementations . Svenska Spel VLT cashless success story 9


 
Spotlight on Digital & Betting: Substantial Growth, Expanded Services, and New Partnerships Enhance IGT’s Position Q3’20 Digital & Betting revenue of $104 million, up 41% • A little over half of revenue from Italy B2C activities, remainder primarily North American B2B activities • B2B Digital & Betting revenue up over 70% in Q3’20 . Strong U.S. iGaming market share positions . IGT powering over 40 U.S. sportsbooks across 15 states . Profit margin of B2B activities accretive to portfolio Launched full-service, in-house trading team, enabling an “all-in-one,” turnkey U.S. sports betting solution Several new sports betting partnerships reinforce IGT’s role as prominent B2B supplier in the U.S. market • Boyd Gaming Nevada partnership • First B2B platform provider to partner with NBA 10


 
Solid Fundamentals Provide Stability; Focus on Creating a Leaner, Stronger IGT Pandemic highlighted the responsiveness of our team and resilience of operations Continued progress on strategic initiatives, especially emerging businesses Simplified organization, concentration on core competencies increase capacity to reduce cash costs • Focus on operational excellence • Reduced complexity of product/geographic mix • Other margin improvement initiatives • Largest opportunities in Global Gaming segment 11


 
Financial Reporting in the New Organizational Structure 12


 
Revenue Mapping to Global Structure Prior Organizational Structure New Organizational Structure North America North America Global Lottery Gaming & Interactive Lottery Gaming machines Technology supply and operating Service revenue Systems contracts (including LMAs) Operating and facilities management contracts (technology Licenses (software, IP) Hardware, systems, software sales supply and LMA contracts, upfront license fee Sports betting Instant ticket printing amortization) iGaming Gaming machines (VLTs) Other (commercial services, software) Sports betting (Rhode Island) Product sales revenue (hardware, systems, software, instant ticket printing) International Italy Technology supply and operating Lottery operating contracts Global Gaming contracts (including service revenue Hardware, systems, software sales amortization) Service revenue Commercial services Commercial services Terminal (gaming machines) Gaming machines Gaming machines (B2B) Systems, software, & other (sports betting, iGaming) Systems Gaming machines (B2C) Licenses (software, IP) Sports betting Product sales revenue Sports betting iGaming Terminal (gaming machines) iGaming Other (systems, software, spare parts) Note: Revenue sources appearing in blue will be part of Global Lottery under the new structure, while revenue sources in orange will be part of Global Gaming; iLottery revenue included in Global Lottery 13


 
Financial Disclosures - Mapping to Global Structure with Recast FY’19 Figures Previous Structure– FY’19 as reported Revenue Operating Income Adjusted EBITDA (2) North America Gaming & Interactive 1,071 North America Gaming & Interactive 264 International Game Technology PLC 1,713 North America Lottery 1,165 North America Lottery 256 International 840 International 127 Italy 1,709 Italy 521 Total 4,786 Corporate support expense (238) (1) Other (293) Total 637 New Structure – FY’19 as reported Revenue Operating Income Adjusted EBITDA (2) Global Lottery 2,293 Global Lottery 697 Global Lottery 1,136 Global Gaming 2,493 Global Gaming 340 Global Gaming 657 Total 4,786 Corporate support expense (106) Corporate and Other (80) (1) Other (294) Total 1,713 Total 637 Incremental segment-level (1) Primarily includes purchase price amortization and goodwill impairment profit disclosure (2) Non-GAAP measures; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details Amounts in $ millions 14


 


 
Financial Results 16


 
Revenue Operating Income Adjusted EBITDA(1) 1,153 982 154 129 Q3'19 Q3'20 Q3'19 Q3'20 • Strong SSS drives Global Lottery revenue to pre-COVID levels • Pandemic impact on Global Gaming partially offset by 41% increase in Digital & Betting revenue (1) Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details Note: $ in millions; EUR/USD FX daily average: 1.11 in Q3’19; 1.17 in Q3’20 17


 
Q3’20 Global Lottery Highlights: Revenue Rebounds to Pre-COVID Levels with High Profit Flow-Through 552 7 6 553 16 570 -12 Revenue • Double-digit SSS growth for both instant ticket and draw games, partially offset by geographic mix, Q3’19 Lottery Other Product Excluding FX Q3’20 Service Service Sales FX lower LMA revenue, and Billbird sale in PY Q3’19 Q3’20 % change as reported % change at constant FX Revenue 552 570 3% 0% • Other service higher on growth in Operating Income 161 196 22% 17% commercial services Adjusted EBITDA(1) 270 309 14% 10% % change at • Product sales primarily reflects Global SSS growth constant FX higher terminal and printing sales Instants & Draw Games 10.6% Multi-jurisdiction jackpots -14.3% in PY Total 8.7% % change at % change at • Operating income up sharply on North America & Rest of world SSS growth constant FX Italy SSS growth constant FX high profit flow-through and benefit Instants & Draw Games 15.0% Instants & Draw Games -3.5% Multi-jurisdiction jackpots -14.3% of cost-saving actions Total 12.1% Note: $ in millions, except where noted otherwise (1) Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in 18 Appendix for further details


 
Q3’20 Global Gaming Highlights: Sequential Growth in Revenue and Profit; Digital & Betting Revenue Surges 601 8 -92 398 14 412 • Terminal service reflects partially Revenue -90 -29 inactive installed base and residual casino closures Q3'19 Terminal Other Terminal Other Excluding FX Q3'20 • ASPs stable; terminal product Service Service Product Product FX Sales Sales sales mirrors industry-wide impact of pandemic, partly offset Q3’19 Q3’20 % change as reported % change at constant FX by benefit of multi-year strategic Revenue 601 412 -31% -34% Operating income/(loss) 68 -8 NA NA agreement (2) Adjusted EBITDA 156 58 -63% -65% • Digital & Betting revenue rises Installed Base (units) Q3’19 Q3’20 Q2’20 Machine Units Sold Q3’19 Q3’20 $30 million(1) US & Canada 37,260 34,584 34,800 New & expansion 1,001 818 Rest of World 14,332 14,798 14,834 Replacement 9,190 2,853 Italy 59,627 54,236 55,235 Total 10,191 3,671 • Operating loss impacted by Total 111,219 103,618 104,869 Average selling price $13,300 $13,300 decline in revenue and higher bad (3) Yields $32.06 $19.88 $6.21 debt & obsolescence charges, (1) Reported Digital & Betting revenue reflects activity across the Company’s business portfolio and includes iLottery partially offset by cost-saving (2) Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details initiatives (3) Excludes Italy installed base and L/T lease units treated as sales-type leases 19 Note: $ in millions, except where noted otherwise


 
2020 Temporary Cost Actions on Target; Simplified Organization Drives $200M+ in Structural Cash Savings • On track for $500 million in temporary cost $500M in Temporary 2020 Cost savings/avoidance in 2020 Savings/Avoidance • New global organization enables optimization of value chain across businesses and regions • Identified over $200 million in structural savings vs. $140M 2019 run rate over next two years • ~80% of savings coming from Global Gaming . Operational excellence initiatives $360M . Reduced complexity of product/geographic mix . Other margin improvement initiatives • Remainder of savings in Global Lottery and Corporate support expense CapEx P&L 20


 
Accelerated Cash Conversion Drives Robust Free Cash Flow Net Net Debt Debt Net 7,354 7,382 Net Debt 133 Debt 169 7,243 41 7,074 366 59 226 (98) (204) (831) $610 net cash provided by operating activities 9/30/19 12/31/19 Adjusted Interest Income Other Cash CapEx Dividends Minorities Other Before FX 9/30/20 @ 1.09 @ 1.12 EBITDA (Net) Taxes from Ops. Paid (Net) FX @ 1.17 Net Debt/LTM EBITDA 4.34x 4.31x 5.72x • YTD generated $610 million in operating cash flow; $384 million in free cash flow • Successfully converted higher percentage of Adjusted EBITDA to cash compared to the prior year • $140 million in net debt reduction since 12/31/19 as reported; $308 million at constant currency 21


 
Ample Liquidity, No Significant Near-Term Maturities Total liquidity improved to ~$2.55 billion as of 9/30/20 • $943 million in unrestricted cash; $1.61 billion in additional borrowing capacity • Strong YTD cash flow and increased liquidity allow for repayment of revolver • Re-established full revolver capacity Focus on restoring pre-pandemic credit ratings Debt Maturity Profile at September 30, 2020 Undrawn RCF Bank Bonds Euro 19% Notes 1,607 Bank Debt USD35% Bond 44% 1,056 EUR Bond 1,000 1,100 585 37% 878 750 750 632 585 375 375 175 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 22


 
Key Takeaways Business recovery highlights resilience • Lottery performance at pre-COVID levels; highest Adjusted EBITDA in seven quarters • Double-digit growth in global Digital & Betting revenue; sequential improvement in Global Gaming • Strong free cash flow • Improved and substantial liquidity position (~$2.55 billion) Optimized cost structure, disciplined capital allocation enhance future margin potential • On track to meet $500 million in temporary cost savings/avoidance in 2020 • Identified over $200 million in structural cash savings over next two years vs. 2019 run rate, mostly in Global Gaming segment 23


 
Q&A 24


 
Appendix: Slides 28-31 Q3’20 and YTD’20 Financial Information Slides 33-45 Recast Historical Financial Data, KPIs, and Reconciliations of Non-GAAP Measures 25


 
Q3’20 and YTD’20 Financial Information 26


 
Q3’20 Income Statement (As Reported) Q3'20 Q3'19 % Change Service revenue 880 922 -5% Product sales 102 231 -56% Total revenue 982 1,153 -15% Adjusted EBITDA 354 407 -13% Operating income 129 154 -16% Interest expense, net (101) (103) Foreign exchange (loss) gain, net (149) 124 Other (expense) income, net (7) - Total non-operating (expenses) income (257) 21 (Loss) Income before (benefit from) provision for income taxes (129) 175 Net (loss) income (102) 131 Net (loss) income attributable to IGT PLC (128) 104 Net (loss) income attributable to IGT PLC per common share - diluted (0.62) 0.51 27


 
Q3’20 and YTD‘20 Cash Flow Statement Q3'20 Q3'19 YTD '20 YTD '19 Net Cash Flows from Operating Activities 285 197 610 789 CapEx (65) (102) (226) (333) Free Cash Flow 220 95 384 456 Debt Proceeds/(Repayment), Net (662) 64 (71) 98 Other - Net 13 (26) (113) (271) Other Investing/Financing Activities (648) 39 (184) (173) Net Cash Flow (428) 134 200 283 Effect of Exchange Rates/Other 38 -27 46 (31) Net Change in Cash and Restricted Cash (390) 107 246 252 Cash and Restricted Cash at End of the Period 1,140 764 1,140 764 28


 
YTD ’20 Financial Highlights Revenue Operating Income/(Loss) Adjusted EBITDA 3,532 2,559 556 -163 YTD ‘20 YTD ‘19 YTD ‘19 YTD ‘20 Note: $ in millions; Adjusted EBITDA removes impact of purchase price amortization, impairment charges, restructuring expense and transaction expense (see appendix for details) EUR/USD FX daily average: 1.12 in YTD ’19; 1.12 YTD ‘20 29


 
Q3’20 Reconciliation of Non-GAAP Measures For the three months ended September 30, 2020 For the three months ended September 30, 2019 Operating Operating Global Global Segment Corporate Total Global Global Segment Corporate Total Lottery Gaming Total and Other IGT PLC Lottery Gaming Total and Other IGT PLC Net loss (102) Net income 131 Benefit from income taxes (26) Provision for income taxes 44 Interest expense, net 101 Interest expense, net 103 Foreign exchange loss, net 149 Foreign exchange gain, net (124) Other non-operating expense, net 7 Other non-operating expense, net - Operating income (loss) 196 (8) 188 (60) 129 Operating income (loss) 161 68 229 (75) 154 Depreciation 51 51 102 1 102 Depreciation 50 55 105 1 106 Amortization - service revenue (1) 54 - 54 - 54 Amortization - service revenue (1) 51 - 51 - 51 Amortization - non-purchase accounting 8 15 23 1 24 Amortization - non-purchase accounting 7 14 21 1 22 Amortization - purchase accounting - - - 42 42 Amortization - purchase accounting - - - 48 48 Restructuring - - - - - Restructuring - 16 16 - 16 Stock-based compensation - - - 1 1 Stock-based compensation 2 2 4 4 8 Other (2) - - - 2 2 Other (2) - - - 2 2 Adjusted EBITDA 309 58 367 (13) 354 Adjusted EBITDA 271 155 426 (19) 407 Cash flows from operating activities 285 Cash flows from operating activities 197 Capital expenditures (65) Capital expenditures (102) Free Cash Flow 220 Free Cash Flow 95 (1) Includes amortization of upfront license fees (2) Primarily includes transaction-related costs $ Millions 30


 
Recast Historical Financial Data, Key Performance Indicators, and Reconciliations of Non-GAAP Measures 31


 
Global Lottery Recast Historical Financial Data and Key Performance Indicators (Amounts in $ millions unless otherwise noted) GLOBAL LOTTERY Revenue YoY % Change (As Reported) YoY % Change (Constant FX) (3) Service FY'18 Q1'19 Q2'19 Q3'19 Q4'19 FY'19 Q1'20 Q2'20 Q3'20 FY'19 Q1'20 Q2'20 Q3'20 FY'19 Q1'20 Q2'20 Q3'20 Operating and facilities management contracts(1) 2,214 558 539 502 527 2,126 454 416 525 -4.0% -18.7% -22.8% 4.7% -1.3% -17.0% -22.2% 1.5% Upfront license fee amortization (207) (50) (49) (48) (49) (196) (48) (48) (52) -5.6% -3.6% -1.6% 7.3% -0.6% -0.2% 0.0% 0.0% Operating and facilities management contracts, net 2,007 509 490 454 479 1,931 406 367 474 -3.8% -20.2% -25.0% 4.4% -1.4% -18.7% -24.4% 1.7% Other 228 60 61 66 66 252 66 70 76 10.8% 10.5% 15.9% 14.8% 17.7% 16.4% 19.3% 9.5% Total service revenue 2,235 569 550 520 544 2,183 472 438 549 -2.3% -16.9% -20.5% 5.7% 0.6% -15.0% -19.6% 2.6% Product sales 127 18 35 33 24 110 32 22 20 -13.4% 75.0% -38.5% -37.6% -12.1% 75.2% -38.2% -38.4% Total revenue 2,362 587 586 552 568 2,293 505 460 570 -2.9% -14.0% -21.6% 3.2% -0.1% -12.1% -20.7% 0.2% Operating income 763 199 183 161 154 697 144 107 196 -8.7% -27.6% -41.5% 21.7% -4.8% -25.4% -41.3% 16.8% Adjusted EBITDA 1,214 308 289 270 268 1,136 243 221 309 -6.4% -21.1% -23.7% 14.4% -2.8% -19.0% -23.1% 9.7% Global same-store sales growth (%)(1) Instant ticket & draw games 4.1% 4.8% 4.6% 3.7% 3.2% 4.1% -4.8% -7.1% 10.6% Multi-jurisdiction jackpots 25.1% -3.3% 18.9% -10.5% -49.4% -18.3% -30.0% -24.2% -14.3% Total 6.1% 3.9% 5.6% 2.4% -4.6% 1.7% -7.2% -8.5% 8.7% North America & Rest of world same-store sales growth (%)(2) Instant ticket & draw games 4.1% 5.9% 5.3% 5.0% 4.7% 5.2% 0.3% 3.5% 15.0% Multi-jurisdiction jackpots 25.1% -3.3% 18.9% -10.5% -49.4% -18.3% -30.0% -24.2% -14.3% Total 6.7% 4.5% 6.6% 3.2% -5.5% 2.0% -3.5% 0.6% 12.1% Italy same-store sales growth (%) Instant ticket & draw games 4.1% 2.0% 2.6% -0.3% -1.3% 0.8% -19.8% -40.5% -3.5% (1) Discrepancies between growth in operating and facilities management contract revenue and same-store sales include Italy mix dynamics (Italy represents a greater share of global revenue than global sales), effective rate, contract wins/losses, and certain non-sales-based revenue items. (2) IGT previously reported same-store revenue growth for lottery outside Italy. The Company believes same-store sales provides a better indication of player/market demand trends. (3) Q3’20 information is as reported 32


 
Global Gaming Recast Historical Financial Data and Key Performance Indicators (Amounts in $ millions unless otherwise noted) GLOBAL GAMING Revenue YoY % Change (As Reported) YoY % Change (Constant FX) (3) Service FY'18 Q1'19 Q2'19 Q3'19 Q4'19 FY'19 Q1'20 Q2'20 Q3'20 FY'19 Q1'20 Q2'20 Q3'20 FY'19 Q1'20 Q2'20 Q3'20 Terminal 1,239 275 279 276 286 1,116 181 37 193 -10.0% -34.1% -86.9% -30.3% -7.2% -32.6% -86.8% -33.1% Systems, software, and other 572 148 151 126 138 562 130 86 138 -1.8% -12.0% -43.0% 9.9% 1.0% -10.1% -42.1% 6.3% Total service revenue 1,812 422 430 402 424 1,678 311 123 331 -7.4% -26.4% -71.5% -17.7% -4.6% -24.7% -71.1% -20.8% Product sales Terminal 455 99 155 139 188 581 53 44 49 27.7% -46.7% -71.7% -64.5% 29.3% -46.0% -71.6% -64.8% Other 203 37 64 60 74 234 72 11 32 15.3% 96.2% -82.0% -47.2% 17.6% 98.5% -81.9% -48.4% Total product sales revenue 658 135 219 199 262 815 125 55 81 23.9% -8.0% -74.7% -59.3% 25.7% -6.9% -74.6% -59.9% Total revenue 2,470 558 648 601 686 2,493 435 178 412 0.9% -21.9% -72.6% -31.5% 3.5% -20.4% -72.3% -33.7% Operating income (loss) 318 58 114 68 100 340 15 (132) (8) 6.9% -74.5% NA NA 9.6% -75.3% NA NA Adjusted EBITDA 603 130 185 156 186 657 78 (32) 58 8.9% -39.5% NA -62.7% 11.4% -39.0% NA -64.7% Installed base units Casino(1) 54,494 54,254 51,565 51,592 50,834 50,834 48,911 48,704 48,280 Casino - L/T lease (2) - - - - - - 917 930 1,102 Italy VLT - Operator (B2C) 10,991 10,995 10,929 10,984 11,020 11,020 10,863 10,844 10,845 Italy VLT - Supplier (B2B) 8,058 7,847 7,524 7,514 7,501 7,501 7,458 7,253 7,112 Italy AWP 42,928 40,746 40,268 41,129 40,892 40,892 38,426 37,138 36,279 Total installed base units 116,471 113,842 110,286 111,219 110,247 110,247 106,575 104,869 103,618 (1) Global alignment of the installed base resulted in an increase of Casino units from historically reported totals in North America. As previously reported, 2,076 and 417-unit reductions in Q2’19 and Q3’19, respectively, were related to a strategic agreement in Oklahoma. (2) Excluded from yield calculations due to treatment as sales-type leases. (3) Q3’20 information is as reported 33


 
Global Gaming Recast Historical Financial Data and Key Performance Indicators GLOBAL GAMING (continued) (3) Installed base units (by geography) FY'18 Q1'19 Q2'19 Q3'19 Q4'19 FY'19 Q1'20 Q2'20 Q3'20 US & Canada 39,589 39,169 37,090 37,260 35,977 35,977 35,065 34,800 34,584 Rest of world 14,905 15,085 14,475 14,332 14,857 14,857 14,763 14,834 14,798 Subtotal 54,494 54,254 51,565 51,592 50,834 50,834 49,828 49,634 49,382 Italy 61,977 59,588 58,721 59,627 59,413 59,413 56,747 55,235 54,236 Total installed base units 116,471 113,842 110,286 111,219 110,247 110,247 106,575 104,869 103,618 Yields (by geography)(1) US & Canada $ 39.91 $ 39.18 $ 40.53 $ 41.31 $ 40.29 $ 40.31 $ 33.72 $ 8.69 $ 26.79 Rest of world (ex-Italy) $ 9.16 $ 9.19 $ 9.02 $ 8.04 $ 7.75 $ 8.50 $ 6.55 $ 0.49 $ 4.31 Total yields (ex-Italy) $ 31.07 $ 30.93 $ 31.76 $ 32.06 $ 31.08 $ 31.45 $ 25.67 $ 6.21 $ 19.88 Global machine units sold New/expansion 5,797 1,864 1,138 1,001 1,811 5,814 119 1,443 818 Replacement(2) 26,760 5,149 10,115 9,190 11,808 36,262 3,563 1,538 2,853 Total machine units sold 32,557 7,013 11,253 10,191 13,619 42,076 3,682 2,981 3,671 US & Canada machine units sold New/expansion 3,917 1,482 438 791 1,405 4,116 36 1,382 667 Replacement(2) 14,932 2,544 4,223 4,150 5,986 16,903 2,036 1,330 2,007 Total machine units sold 18,849 4,026 4,661 4,941 7,391 21,019 2,072 2,712 2,674 Rest of world machine units sold New/expansion 1,880 382 700 210 406 1,698 83 61 151 Replacement(2) 11,828 2,605 5,892 5,040 5,822 19,359 1,527 208 846 Total machine units sold 13,708 2,987 6,592 5,250 6,228 21,057 1,610 269 997 (1) Excludes Casino L/T lease units due to treatment as sales-type leases. (2) Minor differences from historically reported replacement units resulting from a shift from units shipped to units sold, which more closely ties to revenue. (3) Q3’20 information is as reported 34


 
Global Gaming Recast Historical Financial Data and Key Performance Indicators GLOBAL GAMING (continued) (1) Average Selling Price (ASP) FY'18 Q1'19 Q2'19 Q3'19 Q4'19 FY'19 Q1'20 Q2'20 Q3'20 US & Canada $ 13,700 $ 15,600 $ 15,500 $ 14,800 $ 14,900 $ 15,100 $ 14,300 $ 14,700 $ 13,800 Rest of world $ 13,500 $ 11,200 $ 11,500 $ 11,800 $ 11,900 $ 11,700 $ 13,600 $ 14,000 $ 12,100 Total ASP $ 13,600 $ 13,700 $ 13,200 $ 13,300 $ 13,500 $ 13,400 $ 14,000 $ 14,600 $ 13,300 Gaming Systems Revenue ($ millions) 221 48 55 53 59 215 45 23 32 Italy Wagers (€ millions) VLT (B2C) 5,838 1,503 1,427 1,324 1,414 5,669 745 150 940 AWP 3,717 939 916 877 958 3,690 686 83 711 Italy sports betting wagers (€ millions) 988 274 252 227 298 1,050 218 79 237 Italy sports betting payout (%) 82.4% 83.3% 82.2% 83.4% 83.3% 83.1% 79.2% 88.1% 83.0% (1) Q3’20 information is as reported 35


 
Consolidated Recast Historical Financial Data and Key Performance Indicators CONSOLIDATED (3) Revenue (by geography) FY'18 Q1'19 Q2'19 Q3'19 Q4'19 FY'19 Q1'20 Q2'20 Q3'20 US & Canada 2,196 536 583 538 580 2,236 447 369 443 Italy 1,815 437 422 402 448 1,709 329 184 416 Rest of world 820 172 229 213 226 840 164 84 123 Total revenue 4,831 1,145 1,234 1,153 1,253 4,786 940 637 982 (1) Digital & Betting Revenue 326 82 84 74 103 343 84 70 104 (2) Corporate support expense (108) (30) (25) (26) (25) (106) (13) (27) (18) (1) Included within consolidated revenue. (2) Corporate support expense allocation methodology modified to allocate ~75% of corporate expense to the operating segments, compared to ~50% previously allocated. (3) Q3’20 information is as reported 36


 
Recast Reconciliations of Non-GAAP Measures International Game Technology PLC Reconciliation of Non-GAAP Financial Measures ($ thousands) Unaudited 37


 
Recast Reconciliations of Non-GAAP Measures International Game Technology PLC Reconciliation of Non-GAAP Financial Measures ($ thousands) Unaudited 38


 
Recast Reconciliations of Non-GAAP Measures International Game Technology PLC Reconciliation of Non-GAAP Financial Measures ($ thousands) Unaudited 39


 
Recast Reconciliations of Non-GAAP Measures International Game Technology PLC Reconciliation of Non-GAAP Financial Measures ($ thousands) Unaudited 40


 
Recast Reconciliations of Non-GAAP Measures International Game Technology PLC Reconciliation of Non-GAAP Financial Measures ($ thousands) Unaudited 41


 
Recast Reconciliations of Non-GAAP Measures International Game Technology PLC Reconciliation of Non-GAAP Financial Measures ($ thousands) Unaudited 42


 
Recast Reconciliations of Non-GAAP Measures International Game Technology PLC Reconciliation of Non-GAAP Financial Measures ($ thousands) Unaudited 43


 
Recast Reconciliations of Non-GAAP Measures International Game Technology PLC Reconciliation of Non-GAAP Financial Measures ($ thousands) Unaudited 44