PR Newswire | May 11, 2021 06:41AM EDT

05/11 05:40 CDT

International Game Technology PLC Reports First Quarter 2021 Results- 25% revenue growth to $1,015 million on outstanding Global Lottery performance; continued recovery in Global Gaming including acceleration in Digital & Betting activities- Income from continuing operations of $138 million; Adjusted EBITDA of $450 million, among the highest levels in Company history, driven by revenue momentum and structural cost savings- Achieved cash from operations of $251 million; free cash flow of $204 million driven by strong results and invested capital discipline- Completed sale of Italy B2C gaming businesses; net proceeds to partially fund full redemption, by make-whole call, of 4.75% Senior Secured Euro Notes due February 2023- Company to host Investor Day on November 9, 2021 LONDON, May 11, 2021

LONDON, May 11, 2021 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE: IGT) today reported financial results for the first quarter ended March 31, 2021. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.

"We delivered some of our strongest profit results ever during the first quarter, fueled by robust player demand and significant, structural cost savings," said Marco Sala, CEO of IGT. "Our Global Lottery segment achieved record same-store sales levels on impressive increases around the world. The Global Gaming segment is demonstrating swift, progressive recovery, including accelerated momentum for Digital & Betting activities. We expect to return to 2019 levels for key financial metrics this year."

"With the recovery in our business in full swing, we are delivering strong operating leverage which, when coupled with invested capital discipline, drove strong cash flows in the quarter," said Max Chiara, CFO of IGT. "This enabled us to accelerate our debt retirement strategy and gives us confidence in a return to pre-pandemic leverage levels by the end of the current year."

Overview of Consolidated First Quarter 2021 Results

Quarter Ended Constant Y/Y CurrencyAll amounts from continuing operations March 31, ChangeChange (%) (%) 2021 2020

(In $ millions, unless otherwise noted)

GAAP Financials:

Revenue

Global Lottery 749 505 48% 42%

Global Gaming 266 310 (14)% (16)%

Total revenue 1,015814 25% 20%



Operating income/(loss)

Global Lottery 337 144 133% 121%

Global Gaming (19) (6) (208)%(177)%

Corporate support expense (19) (13) (50)% (32)%

Other^(1) (39) (343) 89% 89%

Total operating income/(loss) 260 (218) NA NA



Net cash provided by operating activities251 26 NM



Cash and cash equivalents 748 1,449 (48)%



Non-GAAP Financial Measures:

Adjusted EBITDA

Global Lottery 447 243 84% 74%

Global Gaming 19 31 (39)% (35)%

Corporate support expense (16) (13) (26)% (10)%

Total Adjusted EBITDA 450 261 72% 64%



Free cash flow 204 (60)



Net debt 7,0697,170 (1)%



^(1) Primarily includes purchase price amortization and goodwill impairment

Note: Reconciliations of non-GAAP financial measures to the most directlycomparable GAAP financial measures are provided at the end of this news release

Key Highlights:

* Achieved among highest revenue and profit levels in Company history, fueled by Global Lottery * Delivered strong cash flow driven by performance and invested capital discipline; return to pre-pandemic leverage expected by end of the year * Achieved ~1/3 of $200M+ 2021 OPtiMa savings targets during the first quarter * Sequential improvement in Global Gaming as industry recovers from pandemic-driven restrictions; growth in Digital & Betting continues with 85% year-over-year increase in revenue in the quarter * Successfully refinanced ~$1.0 billion in 6.25% Notes due 2022 with $750 million 4.125% Notes due 2026 and draws on revolving credit facilities * Signed seven-year contract extension with Jamaica Lottery; four-year iLottery contract extension with Kentucky Lottery; two-year contract extension with Mexico Lottery

Financial highlights:

Consolidated revenue of $1,015 million, up 25% from the prior year

* Global Lottery revenue of $749 million, up 48%, driven by 32.4% growth in same-store sales * Global Gaming revenue totals $266 million, versus $310 million in the prior year; up sequentially from $255 million in Q4'20 as U.S. gaming markets continue to recover

Operating income of $260 million, compared to operating loss of $218 million in the prior year

* Global Lottery same-store sales growth translates into high profit flow-through * Benefits from OPtiMa structural cost-savings * Goodwill impairment of $296 million in prior-year period

Net interest expense of $94 million compared to $100 million in the prior year

Provision for income taxes of $148 million, compared to a benefit from income taxes of $1 million in the prior year

* Higher valuation allowances on deferred tax assets in the current period * Income taxes paid of $4 million versus $11 million in the prior year

Net income attributable to IGT was $92 million versus a net loss attributable to IGT of $248 million in the prior-year period

* After-tax goodwill impairment of $296 million in prior-year period * Higher non-cash foreign exchange gains, primarily on Euro-denominated debt instruments, in the current period

Net income per diluted share of $0.38 compared to a net loss per diluted share of $1.28 in the prior year

Adjusted EBITDA of $450 million compared to $261 million in the prior-year period; Global Lottery achieves among the highest segment-level Adjusted EBITDA

Net debt of $7.07 billion compared to $7.32 billion at December 31, 2020; Net debt to LTM Adjusted EBITDA of 5.40x, down from 6.39x at December 31, 2020, driven by strong financial results and cash flow generation

Cash and Liquidity Update

* Total liquidity of $2.1 billion as of March 31, 2021; $748 million in unrestricted cash and $1.4 billion in additional borrowing capacity

Other Developments

* As previously announced, completed sale of Italy B2C gaming businesses on May 10, 2021; net proceeds to partially fund full redemption, by make-whole call, of (euro)850 million 4.75% Senior Secured Euro Notes due February 2023 * In March 2021, issued $750 million 4.125% Notes due 2026, as previously announced * Net proceeds used to fund redemption of 6.25% Notes due 2022 * Lowest USD-denominated coupon ever issued by the Company

Recast historical financial information for Q2'20 and Q3'20 included at the end of this release

Conference Call and Webcast:

May 11, 2021, at 8:00 a.m. EDT

Live webcast available under "News, Events & Presentations" on IGT's Investor Relations website at www.IGT.com; replay available on the website following the live event

Dial-In Numbers

* US/Canada toll-free dial-in number: +1 844 842 7999 * Outside the US/Canada toll-free number: +1 612 979 9887 * Conference ID/confirmation code: 6783961 * A telephone replay of the call will be available for one week * US/Canada replay number: +1 855 859 2056 * Outside the US/Canada replay number: +1 404 537 3406 * ID/Confirmation code: 6783961

Note: Certain totals in the tables included in this press release may not adddue to rounding

Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2021 are calculated using the same foreign exchange rates as the corresponding 2020 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company's financial performance. Management believes these non-GAAP financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with U.S. GAAP.

About IGTIGT (NYSE:IGT) is the global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Gaming Machines and Lotteries to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivalled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 11,000 employees. For more information, please visit www.IGT.com.

Cautionary Statement Regarding Forward-Looking StatementsThis news release 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, 2020 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 news release 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 news release 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.

Non-GAAP Financial MeasuresManagement 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.

Adjusted EBITDA represents net income (loss) from continuing operations (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, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing 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, litigation expense (income) and certain other non-recurring items. 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 capitalized debt issuance costs and cash and cash and equivalents. Cash and cash equivalents 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 cash flow 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.

Constant currency is a non-GAAP financial measure that expresses the current financial data using the prior-year/period exchange rate (i.e., the exchange rates used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.

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.

Contact:Phil O'Shaughnessy, Global Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452Francesco Luti, +39 3485475493; for Italian media inquiriesJames Hurley, Investor Relations, +1 (401) 392-7190

Select Performance and KPI data: ($ in millions, unless otherwise noted) Constant

Y/Y ChangeCurrency Q1'21Q1'20 GLOBAL LOTTERY (%) Change (%)^(1)

Revenue

Service

Operating and facilities management contracts 695 454 53% 47%

Upfront license fee amortization (52) (48) (9)% -%

Operating and facilities management contracts, net 643 406 58% 52%

Other 83 66 24% 15%

Total service revenue 725 472 54% 47%



Product sales 23 32 (28)% (30)%

Total revenue 749 505 48% 42%



Operating income 337 144 133% 121%

Adjusted EBITDA^(1) 447 243 84% 74%



Global same-store sales growth (%)

Instant ticket & draw games 27.4%(4.8)%

Multi-jurisdiction jackpots 94.7%(30.0)%

Total 32.4%(7.2)%



North America & Rest of world same-store sales growth (%)

Instant ticket & draw games 20.9%0.3%

Multi-jurisdiction jackpots 94.7%(30.0)%

Total 27.8%(3.5)%



Italy same-store sales growth (%)

Instant ticket & draw games 52.2%(19.8)%



^(1) Non-GAAP measures; see disclaimer and reconciliations to the most directly comparable GAAP measure included herein

Constant

Y/Y ChangeCurrency Q1'21 Q1'20 GLOBAL GAMING (%) Change (%)^(1)

Revenue

Service

Terminal 90 106 (16)% (16)%

Systems, software, and other 86 77 11% 8%

Total service revenue 175 184 (5)% (6)%



Product sales

Terminal 62 53 17% 14%

Other 29 73 (61)% (62)%

Total product sales revenue 91 126 (28)% (30)%

Total revenue 266 310 (14)% (16)%



Operating loss (19) (6) (208)% (177)%

Adjusted EBITDA^(1) 19 31 (39)% (35)%



Installed base units

Casino 48,23048,911(1)%

Casino - L/T lease^ (2) 1,135 917 24%

Total installed base units 49,36549,828(1)%



Installed base units (by geography)

US & Canada 34,13835,065(3)%

Rest of world 15,22714,7633%

Total installed base units 49,36549,828(1)%



Yields (by geography)^(3), in absolute $

US & Canada $32.27$33.72(4)%

Rest of world (ex-Italy) $2.58 $6.55 (61)%

Total yields (ex-Italy) $22.93$25.67(11)%



Global machine units sold

New/expansion 884 119 NM

Replacement 3,521 3,563 (1)%

Total machine units sold 4,405 3,682 20%



US & Canada machine units sold

New/expansion 620 36 NM

Replacement 2,276 2,036 12%

Total machine units sold 2,896 2,072 40%



^(1) Non-GAAP measures; see disclaimer and reconciliations to the most directly comparable GAAP measure included herein

^(2) Excluded from yield calculations due to treatment as sales-type leases

^(3) Excludes Casino L/T lease units due to treatment as sales-type leases

Constant

Y/Y ChangeCurrency Q1'21 Q1'20 GLOBAL GAMING (Continued) (%) Change (%)^(1)

Rest of world machine units sold

New/expansion 264 83 218%

Replacement 1,245 1,527 (18)%

Total machine units sold 1,509 1,610 (6)%



Average Selling Price (ASP), in absolute $

US & Canada $13,900$14,300(3)%

Rest of world $13,700$13,6001%

Total ASP $13,800$14,000(1)%



Gaming Systems Revenue 30 44 (32)%







CONSOLIDATED

Revenue (by geography)

US & Canada 542 447 21% 21%

Italy 348 202 72% 58%

Rest of world 124 166 (25)% (29)%

Total revenue 1,015 814 25% 20%



Digital & Betting Revenue ^(2) 58 32 85% 78%



^(1) Non-GAAP measures; see disclaimer and reconciliations to the most directly comparable GAAP measure included herein

^(2) Included within consolidated revenue

International Game Technology PLC

Consolidated Statements of Operations

($ in millions and shares in thousands, except per share amounts)

Unaudited



For the three months ended

March 31,

2021 2020

Service revenue 901 656

Product sales 114 158

Total revenue 1,015 814



Cost of services 441 415

Cost of product sales 73 92

Selling, general and administrative 186 164

Research and development 55 61

Goodwill impairment - 296

Restructuring - 4

Total operating expenses 755 1,032



Operating income (loss) 260 (218)



Interest expense, net 94 100

Foreign exchange gain, net (145) (70)

Other expense, net 25 -

Total non-operating (income) expenses (27) 30

Income (loss) from continuing operations before provision for (benefit from) income 287 (248) taxes

Provision for (benefit from) income taxes 148 (1)

Income (loss) from continuing operations 138 (247)

Income from discontinued operations, net of tax 11 13

Net income (loss) 149 (234)

Less: Net income attributable to non-controlling interests from continuing 59 15 operations

Less: Net loss attributable to non-controlling interests from discontinued (2) (1) operations

Net income (loss) attributable to IGT PLC 92 (248)



Net income (loss) from continuing operations attributable to IGT PLC per 0.39 (1.28) common share - basic

Net income (loss) from continuing operations attributable to IGT PLC per 0.38 (1.28) common share - diluted

Net income (loss) attributable to IGT PLC per common share - basic 0.45 (1.21)

Net income (loss) attributable to IGT PLC per common share - diluted 0.44 (1.21)

Weighted-average shares - basic 204,857 204,435

Weighted-average shares - diluted 206,504 204,435

International Game Technology PLC

Consolidated Balance Sheets

($ in millions)

Unaudited



March December 31, 31,

2021 2020

Assets

Current assets:

Cash and cash equivalents 748 907

Restricted cash and cash equivalents 184 199

Trade and other receivables, net 912 846

Inventories 167 169

Other current assets 489 480

Assets held for sale 808 839

Total current assets 3,308 3,440

Systems, equipment and other assets related to 1,018 1,068 contracts, net

Property, plant and equipment, net 128 132

Operating lease right-of-use assets 274 288

Goodwill 4,679 4,713

Intangible assets, net 1,531 1,577

Other non-current assets 1,622 1,774

Total non-current assets 9,252 9,552

Total assets 12,560 12,992



Liabilities and shareholders' equity

Current liabilities:

Accounts payable 1,201 1,126

Current portion of long-term debt 375 393

Other current liabilities 804 847

Liabilities held for sale 174 250

Total current liabilities 2,554 2,615

Long-term debt, less current portion 7,441 7,857

Deferred income taxes 430 333

Operating lease liabilities 256 266

Other non-current liabilities 330 360

Total non-current liabilities 8,458 8,816

Total liabilities 11,012 11,431

Commitments and contingencies

IGT PLC's shareholders' equity 835 777

Non-controlling interests 714 784

Shareholders' equity 1,548 1,561

Total liabilities and shareholders' equity 12,560 12,992

International Game Technology PLC

Consolidated Statements of Cash Flows

($ in millions)

Unaudited

For the three months ended

March 31,

2021 2020

Cash flows from operating activities

Net income (loss) 149 (234)

Less: Income from discontinued operations, net of tax 11 13

Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities from continuing operations:

Deferred income taxes 100 (23)

Depreciation 82 86

Amortization of upfront license fees 55 50

Amortization 49 56

Loss on extinguishment of debt 24 -

Debt issuance cost amortization 6 5

Stock-based compensation 4 (13)

Goodwill impairment - 296

Foreign exchange gain, net (145) (70)

Other non-cash items, net - (5)

Changes in operating assets and liabilities, excluding the effects of acquisitions:

Trade and other receivables (86) 279

Inventories 4 (15)

Accounts payable 115 (195)

Other assets and liabilities (95) (178)

Net cash provided by operating activities from continuing operations 251 26

Net cash (used in) provided by operating activities from discontinued (36) 132 operations

Net cash provided by operating activities 215 157



Cash flows from investing activities

Capital expenditures (48) (85)

Proceeds from sale of assets 6 6

Other - 11

Net cash used in investing activities from continuing operations (42) (69)

Net cash used in investing activities from discontinued operations (10) (14)

Net cash used in investing activities (51) (83)



Cash flows from financing activities

Principal payments on long-term debt (1,387) (432)

Payments in connection with the extinguishment of debt (22) -

Payments of debt issuance costs (6) -

Net proceeds from short-term borrowings - 110

Net receipts from financial liabilities 9 51

Net proceeds from Revolving Credit Facilities 432 988

Proceeds from long-term debt 750 -

Dividends paid - (41)

Dividends paid - non-controlling interests (69) (16)

Return of capital - non-controlling interests (11) -

Capital increase - non-controlling interests 10 2

Other (5) (2)

Net cash (used in) provided by financing activities (301) 660



Net (decrease) increase in cash and cash equivalents and restricted cash and (137) 734 cash equivalents

Effect of exchange rate changes on cash and cash equivalents and restricted (36) (10) cash and cash equivalents

Cash and cash equivalents and restricted cash and cash equivalents at the 1,129 894 beginning of the period

Cash and cash equivalents and restricted cash and cash equivalents at the end 956 1,618 of the period

Less: Cash and cash equivalents and restricted cash and cash equivalents of 24 18 discontinued operations

Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing 932 1,600 operations



Supplemental Cash Flow Information

Interest paid 166 182

Income taxes paid 4 11

International Game Technology PLC

Net Debt

($ in millions)

Unaudited



March December 31, 31,

2021 2020

6.250% Senior Secured U.S. Dollar Notes due February 2022- 1,004

4.750% Senior Secured Euro Notes due February 2023 992 1,038

5.350% Senior Secured U.S. Dollar Notes due October 2023 61 61

3.500% Senior Secured Euro Notes due July 2024 583 610

6.500% Senior Secured U.S. Dollar Notes due February 20251,092 1,092

4.125% Senior Secured U.S. Dollar Notes due April 2026 743 -

3.500% Senior Secured Euro Notes due June 2026 873 913

6.250% Senior Secured U.S. Dollar Notes due January 2027 744 744

2.375% Senior Secured Euro Notes due April 2028 581 608

5.250% Senior Secured U.S. Dollar Notes due January 2029 743 743

Senior Secured Notes 6,413 6,813



Euro Term Loan Facility due January 2023 624 1,044

Euro Revolving Credit Facility B due July 2024 137 -

U.S. Dollar Revolving Credit Facility A due July 2024 267 -

Long-term debt, less current portion 7,441 7,857



Euro Term Loan Facility due January 2023 375 393

Current portion of long-term debt 375 393



Total debt 7,817 8,250



Less: Cash and cash equivalents 748 907

Less: Debt issuance costs, net - Revolving Credit - 24 Facilities due July 2024

Net debt 7,069 7,319



Note: Net debt is a non-GAAP financial measure

International Game Technology PLC

Reconciliation of Non-GAAP Financial Measures

($ in millions)

Unaudited



For the three months ended March 31, 2021

Business

Global Global Segment CorporateTotal IGT

LotteryGaming Total and OtherPLC

Income from continuing operations 138

Provision for income taxes 148

Interest expense, net 94

Foreign exchange gain, net (145)

Other non-operating expense, net 25

Operating income (loss) 337 (19) 318 (58) 260

Depreciation 47 35 83 (1) 82

Amortization - service revenue^ (1) 55 - 55 - 55

Amortization - non-purchase accounting 8 1 9 1 10

Amortization - purchase accounting - - - 39 39

Stock-based compensation 1 1 2 2 4

Adjusted EBITDA 447 19 466 (16) 450



Cash flows from operating activities - continuing operations 251

Capital expenditures (48)

Free Cash Flow 204





^(1) Includes amortization of upfront license fees

International Game Technology PLC

Reconciliation of Non-GAAP Financial Measures

($ in millions)

Unaudited



For the three months ended March 31, 2020

Business

Global Global Segment CorporateTotal IGT

LotteryGaming Total and OtherPLC

Loss from continuing (247) operations

Benefit from income taxes (1)

Interest expense, net 100

Foreign exchange gain, net (70)

Operating income (loss) 144 (6) 138 (356) (218)

Goodwill impairment - - - 296 296

Depreciation 46 40 85 - 86

Amortization - service 50 - 50 - 50 revenue ^(1)

Amortization - non-purchase 7 1 8 1 9 accounting

Amortization - purchase - - - 47 47 accounting

Restructuring - 1 1 3 4

Stock-based compensation (4) (5) (9) (4) (13)

Adjusted EBITDA 243 31 274 (13) 261



Cash flows from operating activities 26 - continuing operations

Capital expenditures (85)

Free Cash Flow (60)



^(1) Includes amortization of upfront license fees

Recast Historical Financial Information

Recast data reflects the treatment of IGT's Italian B2C gaming machine, sports betting, and digital gaming businesses as discontinued operations.

Select Performance and KPI data:($ in millions, unless otherwise noted)

GLOBAL LOTTERY Q2'20 Q3'20

Revenue

Service

Operating and facilities management contracts 416 525

Upfront license fee amortization (48) (52)

Operating and facilities management contracts, net 367 474

Other 70 76

Total service revenue 438 549



Product sales 22 20

Total revenue 460 570



Operating income 107 196

Adjusted EBITDA^(1) 221 309



Global same-store sales growth (%)

Instant ticket & draw games (7.1)% 10.6%

Multi-jurisdiction jackpots (24.2)%(14.3)%

Total (8.5)% 8.7%



North America and Rest of world same-store sales growth (%)

Instant ticket & draw games 3.5% 15.0%

Multi-jurisdiction jackpots (24.2)%(14.3)%

Total 0.6% 12.1%



Italy same-store sales growth (%)

Instant ticket & draw games (40.5)%(3.5)%





^(1) Non-GAAP measures; see disclaimer and reconciliations to the most directlycomparable GAAP measure included herein

GLOBAL GAMING Q2'20 Q3'20

Revenue

Service

Terminal 25 81

Systems, software, and other 59 82

Total service revenue 84 163



Product sales

Terminal 44 49

Other 12 34

Total product sales revenue 56 83

Total revenue 140 247



Operating loss (111) (50)

Adjusted EBITDA^(1) (36) (8)



Installed base units

Casino 48,704 48,280

Casino - L/T lease^ (2) 930 1,102

Total installed base units 49,634 49,382



Installed base units (by geography)

US & Canada 34,800 34,584

Rest of world 14,834 14,798

Total installed base units 49,634 49,382



Yields (by geography)^(3), in absolute $

US & Canada $8.69 $26.79

Rest of world $0.49 $4.31

Total yields $6.21 $19.88



Global machine units sold

New/expansion 1,443 818

Replacement 1,538 2,853

Total machine units sold 2,981 3,671



US & Canada machine units sold

New/expansion 1,382 667

Replacement 1,330 2,007

Total machine units sold 2,712 2,674



Rest of world machine units sold

New/expansion 61 151

Replacement 208 846

Total machine units sold 269 997



Average selling price (ASP), in absolute $

US & Canada $14,700$13,800

Rest of world $14,000$12,100

Total ASP $14,600$13,300



Gaming systems revenue 23 31



^(1) Non-GAAP measures; see disclaimer and reconciliations to the most directlycomparable GAAP measure included herein

^(2) Excluded from yield calculations due to treatment as sales-type leases

^(3) Excludes Casino L/T lease units due to treatment as sales-type leases

CONSOLIDATED Q2'20Q3'20

Revenue (by geography)

US & Canada 369 443

Italy 150 246

Rest of world 80 127

Total revenue 600 816



Digital & Betting Revenue ^(1)43 48





^(1) Included within consolidated revenue

International Game Technology PLC

Consolidated Statements of Operations

($ in millions and shares in thousands, except per share amounts)

Unaudited



For the three months ended

June 30, September 30, 2020 2020

Service revenue 522 713

Product sales 78 104

Total revenue 600 816



Cost of services 361 418

Cost of product sales 67 83

Selling, general and administrative 168 179

Research and development 31 48

Restructuring 43 -

Other operating expense, net 1 1

Total operating expenses 672 730



Operating (loss) income (72) 87



Interest expense, net 96 101

Foreign exchange loss, net 74 149

Other expense, net 28 6

Total non-operating expenses 198 256



Loss from continuing operations before benefit from income taxes (271) (170)

Benefit from income taxes (3) (41)

Loss from continuing operations (268) (129)

(Loss) income from discontinued operations, net of tax (15) 26

Net loss (282) (102)

Less: Net income attributable to non-controlling interests from continuing - 25 operations

Less: Net (loss) income attributable to non-controlling interests from discontinued (3) 1 operations

Net loss attributable to IGT PLC (280) (128)



Net loss from continuing operations attributable to IGT PLC per common share - (1.31) (0.75) basic and diluted

Net loss attributable to IGT PLC per common share - basic and diluted (1.37) (0.62)

Weighted-average shares - basic and diluted 204,748 204,857



International Game Technology PLC

Consolidated Statements of Cash Flows

($ in millions)

Unaudited



For the three months ended

June 30,September 30, 2020 2020

Cash flows from operating activities

Net loss (282) (102)

Less: (Loss) income from discontinued operations, net of tax (15) 26

Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities from continuing operations:

Depreciation 88 91

Foreign exchange loss, net 74 149

Amortization 52 53

Amortization of upfront license fees 51 54

Loss on extinguishment of debt 28 -

Debt issuance cost amortization 5 5

Stock-based compensation 1 1

Deferred income taxes (13) (70)

Other non-cash items, net 4 1

Changes in operating assets and liabilities, excluding the effects of dispositions and acquisitions:

Trade and other receivables (192) 81

Inventories 10 (3)

Accounts payable 175 (25)

Other assets and liabilities 111 (18)

Net cash provided by operating activities from continuing operations 127 191

Net cash provided by operating activities from discontinued operations 40 95

Net cash provided by operating activities 168 285



Cash flows from investing activities

Capital expenditures (54) (65)

Proceeds from sale of assets (1) 1

Other - 2

Net cash used in investing activities from continuing operations (55) (62)

Net cash used in investing activities from discontinued operations (6) (1)

Net cash used in investing activities (61) (63)



Cash flows from financing activities

Principal payments on long-term debt (790) (579)

Net payments of short-term borrowings (35) (83)

Payments in connection with the extinguishment of debt (25) -

Payments of debt issuance costs (20) (2)

Net (payments of) receipts from financial liabilities (14) 59

Proceeds from long-term debt 750 -

Dividends paid - non-controlling interests (76) (45)

Capital increase - non-controlling interests - 1

Other (4) (3)

Net cash used in financing activities (213) (650)



Net decrease in cash and cash equivalents and restricted cash and cash (106) (428) equivalents

Effect of exchange rate changes on cash and cash equivalents and restricted 18 38 cash and cash equivalents

Cash and cash equivalents and restricted cash and cash equivalents at the 1,618 1,530 beginning of the period

Cash and cash equivalents and restricted cash and cash equivalents at the end 1,530 1,140 of the period

Less: Cash and cash equivalents and restricted cash and cash equivalents of 19 19 discontinued operations

Cash and cash equivalents and restricted cash and cash equivalents at the end 1,511 1,121 of the period of continuing operations



Supplemental Cash Flow Information:

Interest paid 49 141

Income taxes paid 7 20

International Game Technology PLC

Reconciliation of Non-GAAP Financial Measures

($ in millions)

Unaudited



For the three months ended June 30, 2020

Global GlobalBusinessCorporateTotal IGT LotteryGamingSegment and OtherPLC Total

Loss from continuing operations (268)

Benefit from income taxes (3)

Interest expense, net 96

Foreign exchange loss, net 74

Other non-operating expense, net 28

Operating income (loss) 107 (111) (4) (69) (72)

Depreciation 50 37 87 - 88

Amortization - service revenue (1) 51 - 51 - 51

Amortization - non-purchase accounting 7 2 9 1 10

Amortization - purchase accounting - - - 42 42

Restructuring 5 35 40 3 43

Stock-based compensation - - - 1 1

Other (2) - - - 1 1

Adjusted EBITDA 221 (36) 184 (20) 164



Cash flows from operating activities - continuing operations 127

Capital expenditures (54)

Free Cash Flow 73





^(1) Includes amortization of upfront license fees

^(2) Primarily includes transaction-related costs

For the three months ended September 30, 2020

Global GlobalBusinessCorporateTotal IGT LotteryGamingSegment and OtherPLC Total

Loss from continuing operations (129)

Benefit from income taxes (41)

Interest expense, net 101

Foreign exchange loss, net 149

Other non-operating expense, net 6

Operating income (loss) 196 (50) 146 (59) 87

Depreciation 51 40 91 - 91

Amortization - service revenue (1) 54 - 54 - 54

Amortization - non-purchase accounting 8 2 10 1 11

Amortization - purchase accounting - - - 42 42

Stock-based compensation - - - 1 1

Other (2) - - - 1 1

Adjusted EBITDA 309 (8) 301 (13) 287



Cash flows from operating activities - continuing operations 191

Capital expenditures (65)

Free Cash Flow 126





^(1) Includes amortization of upfront license fees

^(2) Primarily includes transaction-related costs

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SOURCE International Game Technology PLC