Company Presentation. June 2018

Size: px

Start display at page:

Download "Company Presentation. June 2018"

Rodney Webster
6 years ago
Views:

1 Company Presentation June 2018

2 Disclaimer By reading or attending the presentation that follows, you agree to be bound by the following limitations. This presentation has been prepared by INTRALOT S.A. and its subsidiaries (the Company or We ) solely for informational purposes and does not constitute, and should not be construed as, an offer to sell or issue securities or otherwise constitute an invitation or inducement to any person to purchase, underwrite, subscribe to or otherwise acquire securities in the Company. This presentation is intended to provide a general overview of the Company and its business and does not purport to deal with all aspects and details regarding the Company. For the purposes of this disclaimer, the presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on its behalf, any question-and-answer session that follows the oral presentation, hard copies of this document and any materials distributed in connection with the presentation. By attending the meeting at which the presentation is made, dialling into the teleconference during which the presentation is made or reading the presentation, you will be deemed to have agreed to all of the restrictions that apply with regard to the presentation and acknowledged that you understand the legal regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation. The Company has included non-ifrs financial measures in this presentation. These measurements may not be comparable to those of other companies. Reference to these non-ifrs financial measures should be considered in addition to IFRS financial measures, but should not be considered a substitute for results that are presented in accordance with IFRS. The information contained in this presentation has not been subject to any independent audit or review. A significant portion of the information contained in this presentation, including all market data and trend information, is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. Our internal estimates have not been verified by an external expert, and we cannot guarantee that a third party using different methods to assemble, analyse or compute market information and data would obtain or generate the same results. We have not verified the accuracy of such information, data or predictions contained in this presentation that were taken or derived from industry publications, public documents of our competitors or other external sources. Further, our competitors may define our and their markets differently than we do. In addition, past performance of the Company is not indicative of future performance. The future performance of the Company will depend on numerous factors, which are subject to uncertainty, including factors which may be unknown on the date hereof. Each attendee or recipient acknowledges that neither it nor the Company intends that the Company act or be responsible as a fiduciary to such attendee or recipient, its management, stockholders, creditors or any other person. By accepting and providing this document, each attendee or recipient and the Company, respectively, expressly disclaims any fiduciary relationship and agrees that each attendee or recipient is responsible for making its own independent judgment with respect to the Company and any other matters regarding this document. Certain statements contained in this presentation that are not statements of historical fact, including, without limitation, any statements preceded by, followed by or including the words targets, believes, expects, aims, intends, may, anticipates, would, could or similar expressions or the negative thereof, constitute forward-looking statements, notwithstanding that such statements are not specifically identified. Examples of forward-looking statements include, but are not limited to: (i) statements about future financial and operating results; (ii) statements of strategic objectives, business prospects, future financial condition, budgets, projected levels of production, projected costs and projected levels of revenues and profits of the Company or its management or boards of directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and outside of the control of the Company. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. We have based these assumptions on information currently available to us, if any one or more of these assumptions turn out to be incorrect, actual market results may differ from those predicted. While we do not know what impact any such differences may have on our business, if there are such differences, our future results of operations and financial condition, could be materially adversely affected. You should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. June 2018 Public Slide 2 of 41

3 AGENDA 1. Company Overview 2. Investment Highlights 3. Financial Summary 4. Appendix

4 Company Overview

Monitors Oceania Asia 21,600 Retailer terminals 28,100 VLT Systems 11,600 Horizon Monitors 200 Self-Service Terminals LTM 3 Revenue Breakdown Americas 20%

Retailer: Integrated point of sale solutions incorporating multimedia and touchscreen functionality for instant lottery and online gaming products VLT

self-service gaming solutions that deliver real time content and gaming products across multiple categories 29 Countries 51 Jurisdictions 89 Contracts c.

5 INTRALOT s Global Presence at a Glance 1 South America U.S.A. 51,000 Retailer Terminals 14,600 VLT Systems 7,400 Self-service Terminals 32,600 Horizon Monitors Africa Europe 72,500 Retailer terminals 34,600 Horizon Monitors Oceania Asia 21,600 Retailer terminals 28,100 VLT Systems 11,600 Horizon Monitors 200 Self-Service Terminals LTM 3 Revenue Breakdown Americas 20% Europe 53% 27% RoW 9,800 Retailer Terminals 4,800 Horizon Monitors 3,400 Retailer Terminals 2,200 Horizon Monitors 600 Self-Service Terminals 300,000 Retailer: Integrated point of sale solutions incorporating multimedia and touchscreen functionality for instant lottery and online gaming products VLT Systems: Video Lottery Terminal monitoring systems that allow monitoring patrons betting activity INTRALOT Solutions WORLDWIDE Self-service: Interactive self-service gaming solutions that deliver real time content and gaming products across multiple categories 29 Countries 51 Jurisdictions 89 Contracts c. 5,100 Employees bn FY17 Revenues Horizon Monitors: Intelligent multimedia content management system and delivery system. Digital content and signage delivery to shops, screens and retail terminals INTRALOT is a leading supplier of integrated gaming and transaction systems, innovative game content, sports betting, and interactive gaming services to state Lotteries worldwide 1 Company information, as of 3/31/2018; Terminal information as of FY17 2 Of which c. 3,100 in subsidiaries and c. 2,000 in associates 3 LTM as of 3/31/2018 June 2018 Public Slide 5 of 41

INTRALOT A Global Gaming Technology and Service Company INTRALOT provides customized software and hardware services to state and state-licensed lottery and

offering Day to day operations management Includes marketing, POS optimisation, risk management Provision of hardware, software and telecom solutions to state

Typical contract structure Multi-year with renewal options Fixed percentage of wagers Typical contract structure Multi-year with renewal options Fixed

6 INTRALOT A Global Gaming Technology and Service Company INTRALOT provides customized software and hardware services to state and state-licensed lottery and gaming organizations worldwide OUR THREE PILLARS Licensed Operations Management Contracts Technology Operation and control over every aspect of the gaming offering Day to day operations management Includes marketing, POS optimisation, risk management Provision of hardware, software and telecom solutions to state or state-licensed operators Installation, maintenance and support Typical contract structure Open-ended market licence Revenues generated through wagers Typical contract structure Multi-year with renewal options Fixed percentage of wagers Typical contract structure Multi-year with renewal options Fixed percentage of wagers % LTM 1 GGR 2 39% 21% 40% % LTM 1 EBITDA 36% 28% 36% 1 LTM as of 3/31/ GGR is defined as total revenue net of payout of winnings June 2018 Public Slide 6 of 41

Broad and Well-Diversified Suite of Products Lottery Games Sports Betting IT

8% 2.3% % LTM 1 GGR 2 35.0% 42.8% 15.5% 5.3% 1.

largest sportbooks globally More than 20 jurisdictions Support and

jurisdictions Pari-mutuel and Fixed-odds betting on horse, greyhound and

payout of winnings 3 The currently suspended license in Cyprus is not

7 Broad and Well-Diversified Suite of Products Lottery Games Sports Betting IT Products and Services VLTs / AWPs Racing % LTM 1 Revenue 30.8% 56.0% 8.1% 2.8% 2.3% % LTM 1 GGR % 42.8% 15.5% 5.3% 1.4% 34 jurisdictions 400+ games in 70,000 POS 11 jurisdictions 3 One of the largest sportbooks globally More than 20 jurisdictions Support and maintenance of central IT system and terminals 4 jurisdictions 40,000+ VLTs 7 jurisdictions Pari-mutuel and Fixed-odds betting on horse, greyhound and virtual racing 1 LTM as of 3/31/ GGR is defined as total revenue net of payout of winnings 3 The currently suspended license in Cyprus is not included in the total count More than 30% of our Sports Betting GGR stems from the Interactive Market June 2018 Public Slide 7 of 41

INTRALOT Certifications and Memberships State-of-the-Art management

excellence have allowed INTRALOT to establish its credibility and build

HIGHLIGHTS Responsible Reliable As member of the UN Global Compact,

development, and is an active proponent of the principles of responsible

Company maintains the highest security certification INTRALOT is the

according to the WLA Security Control Standard in 2008 Moreover, the

Security Management System and maintains the ISO 20000, ISO 9001 and ISO

first companies in the gaming industry globally to be certified under

to Achieve WLA SCS Certification 1 st Vendor to Achieve ISO 20000

8 INTRALOT Certifications and Memberships State-of-the-Art management systems, continual improvement and recurrent industry recognition for excellence have allowed INTRALOT to establish its credibility and build trust with all key stakeholders RESPONSIBLE & RELIABLE PARTNER HIGHLIGHTS Responsible Reliable As member of the UN Global Compact, INTRALOT is a global corporate citizen committed to sustainable development, and is an active proponent of the principles of responsible gaming, possessing the WLA Responsible Gaming Framework Certificate The Company maintains the highest security certification INTRALOT is the first international vendor in the gaming sector that has been certified according to the WLA Security Control Standard in 2008 Moreover, the Company has been certified with the ISO for its (ISMS) Information Security Management System and maintains the ISO 20000, ISO 9001 and ISO certifications, on IT service management, quality management and environmental management respectively. In mid-march, INTRALOT Group proudly announced that it is one of the first companies in the gaming industry globally to be certified under the ISO standard for anti-bribery management systems 1 st Vendor to Achieve WLA SCS Certification 1 st Vendor to Achieve ISO Certification 21 operations certified as per both WLA (SCS) and ISO security certifications. Leadingmember in all major Lottery and Gaming Associations globally: Platinum Contributor Gold Sponsor Premium Partner Member Top Sponsor Star Contributor Gold Member June 2018 Public Slide 8 of 41

9 Investment Highlights

10 Key Investment Highlights Attractive and Stable Industry with Sustainable Growth Defensible Market Position with Significant Barriers to Entry History of Innovation and Robust Development Diversified and Highly Visible Recurring Revenues Secured by Long-term Contracts Track Record of Successful Extensions Across Contract Portfolio Shift to Asset-Light Model and Stronger Cash Flow Generation Experienced Management Team Delivering Results June 2018 Public Slide 10 of 41

11 1a Attractive and Stable Industry with Sustainable Growth 2017E Gross Gaming Win By Product Betting 14.3% Casino 34.0% Lotteries 27.2% 3.3% 21.2% Bingo/Other Gaming Gaming Machines Global Gaming Exhibit Growth Through the Cycle 382bn 2017E Global GGR By Geography Oceania, 5.0% Africa, 1.0% Asia / ME N America 30.3% 35.0% 2.3% Lat Am & the Caribbean 26.4% Europe Global Market per Product Split (Global GGR / CAGR, bn / %) (Global GGR / CAGR, bn / %) +2.0% +2.3% +2.0% % 8% 8% 10% 10% 58% 58% 58% 58% 58% 58% 57% 62% 62% 61% 59% 93% 92% 92% 90% 90% 14% 14% 15% 15% 15% 15% 16% 12% 12% 13% 14% 26% 26% 27% 27% 28% 27% 27% 27% 27% 27% 27% Global Market per Channel Split % 89% +2.3% % 12% 12% 89% 88% 88% % 87% % 87% 12A 13A 14A 15A 16A 17E 18F 19F 20F 21F 22F 12A 13A 14A 15A 16A 17E 18F 19F 20F 21F 22F 1 Includes Casino, Gaming Machines and Bingo/ Other Gaming Source: Η2GC Published January 2018 Lotteries Betting All Other 1 Interactive Land-based CAGR 17E-22F Interactive: 6.8% (including mobile with CAGR of 13.2%) Land-based: 1.7% Europe expected to lead interactive penetration with 27.4% in 2022 versus a global average of 13.2% June 2018 Public Slide 11 of 41

12 1b Regulatory and Industry Trends Overview Regulation Initiatives Key Sector Trends Global regulation changes, driven by country and state budget deficits and increased demands for social welfare spending fuel: Liberalizations of gaming markets, mainly Internet and mobile markets Privatizations of state owned lotteries Crackdowns on illegal gaming Intralot s Position Leading partner for organizations that want to compete in a regulated interactive competitive environment End-to-End Player Experience New business models focus on growing consumer demand for entertainment Personalized game offering and content Customer analytics Offers a personalized player experience Technology Convergence An All-in-one gaming platform delivering a unified customer experience Convergence of land based and interactive channels Robust, efficient and versatile gaming platform that converges land-based and interactive channels Distribution Channels Mobile is now the primary access point to online retail for most consumers Omni-Channel Approach Competition Major international competitors shift focus to VLT market and achieving synergies Offers extensive business support for optimal customer experience June 2018 Public Slide 12 of 41

13 2 Defensible Market Position with Significant Barriers to Entry Scale and Market Leadership Leading Market Position in 3 out of 6 1 countries with Licensed Operations Diversified portfolio with 89 contracts and licenses, with presence across 51 jurisdictions in 29 countries 2 Probability of Successful Contract Acquisition for any Given Bidding Process (excluding pending/cancelled processes) 42% Creates Significant Incumbent Advantages Technology & Management Contracts Won Globally 4 36% 14% 50% Won Processes that we submitted the winning offer Cancelled/ Pending Processes that did not result to an award yet or have been cancelled Lost Processes that were awarded to another bidder c. 24 bn wagers handled in FY17 % of U.S. Contracts Renewed or Extended (Since 2008) Not Renewed 10% 5,100 people employed worldwide 3 Renewed 90% Source: INTRALOT 1 The currently suspended license in Cyprus is not included in the total count 2 Based on 3/31/2018 data 3 Of which c. 3,100 in subsidiaries and c. 2,000 in associates 4 INTRALOT, (Sample of 28 opportunities) June 2018 Public Slide 13 of 41

3 History of Innovation and Robust Development Superior technology platform uniquely positions INTRALOT to capture opportunities in newly regulated geographies, new products and Omni-channel

EU s Industrial R&D Investment Scoreboard Lotos10 Terminal Solutions Management of registered playersat all channels Automated Management Personalized offers Analysis of players attributes and

14 3 History of Innovation and Robust Development Superior technology platform uniquely positions INTRALOT to capture opportunities in newly regulated geographies, new products and Omni-channel offerings History of Innovation and Development 169 Gaming Technology Patents Over 45m spent on R&D since Supported by On-going Development and Strategic Partnerships 12 Consecutive years on EU s Industrial R&D Investment Scoreboard Lotos10 Terminal Solutions Management of registered playersat all channels Automated Management Personalized offers Analysis of players attributes and behavior Increase of lifetime value Management of retailers for best player experience at the retail shop Reward and motivation programs Management of resources and automation of the supply chain Bespoke trading and sportsbook solutions Managed application support service Highly scalable platform Modularity of platform enables customer flexibility Advanced, modular platform designed to drive INTRALOT forward Future proof architecture Omni-channel approach for mobile, retail and online 3 rd party application ready c.300,000 retail lottery solution deployed globally Full range of retail and selfservice solutions Advanced terminals incorporating touchscreen, tablet and digital camera technologies 1 Includes 2014, 2015 and 2016 figures on a continuing operations basis June 2018 Public Slide 14 of 41

15 4 Well Diversified Long-Term Contracts Provide Stability and Visibility Contracted Recurring Revenue (Without Extension Options) 7 licensed operations in 6 1 countries with leading market position in the majority of them 100% 94% 85% 82% 81% 76% Unique operational model in countries allowing INTRALOT to micro tailor products for distribution Competition (where applicable) is local no global competitor in licensed operations markets 76% of 2017A revenues secured through multi-year contracts or renewable licenses until A 2018E 2019E 2020E 2021E 2022E Average contract duration of our US operations of 7.1 years (FY17) Taking into consideration the extension options of our contracts, revenue visibility increases to 79% (until 2022) Well diversified portfolio with balanced presence in developed (through new sales channels) and developing markets (high GDP growth) Majority of revenues, cash resources and debt obligations outside Greece, thereby mitigating individual sovereign risk LTM 2 EBITDA by Geography 3 Turkey United States 21% 19% Average sovereign rating of operations in the high BBB/Baa to low A area 1 The currently suspended license in Cyprus is not included in the total count 2 LTM as of 3/31/ Countries with negative EBITDA have been excluded from the chart Other 4% Ireland 2% Netherlands 3% 4% Morocco 5% Malta 8% Australia 14% Bulgaria 11% 9% Azerbaijan Argentina June 2018 Public Slide 15 of 41

16 5 Track Record of Success Across Portfolio of Long-Term Contracts Strong Track Record of Contract Awards & Renewals 2017 Successful launch of our 10-year contract with the State Lottery organization in Chile Major Contract Expiry 4 (Without Renewal Options) Contract Type % of LTM Revenue % of LTM GP 1 % of LTM EBITDA 1 3-year extension with OPAP, specifically in the numerical lotteries games (OPAP renewal option for an additional 2 years) 1-year extension with MDJS (Morocco) up to December 2019 Turkey (Inteltek) Morocco / 2019 Management Contracts Management Contracts 4% 2% 12% 9% 14% 5% Ohio extended through 2027 Arkansas extended through 2026 Vermont extended through year contract with Idaho, renewed to U.S. Lottery Extensions Greece (OPAP) 2 Oceania 5 Malta / Technology Technology Licensed Operations 2% 2% 8% 6% 10% 4% 6% 11% 6% 2018 Wyoming extended through 2024 INTRALOT signed a contract to become the Illinois Lottery provider for a 10-year term Argentina (13 Contracts) Azerbaijan Greece (Hellenic Lotteries) Technology/ Licensed Ops Licensed Operations Licensed Operations 8% 14% 1% 9% 10% 2% 10% 12% 2% US (13 Contracts) Technology 9% 8% 21% Bulgaria Open Market License Licensed Operations 29% 14% 16% 1 Management estimation incorporating direct expenses and apportionment of indirect expenses related to the project/country 2 The new agreement has different commercial terms from the existing one 3 Contract with SGLN currently expires on December A one-year extension with MDJS up to December 2019 has been agreed 4 If multiple contracts exist, the one with the longest maturity is displayed 5 New Zealand Monitoring ends in 2022 while that in Victoria (Australia) ends in 2027 Discr. Turkey (Bilyoner) Management Renewal 5% Contracts 19% 9% June 2018 Public Slide 16 of 41

17 6a Two Pillar Approach to Asset-Light Model New Platform Technology Proprietary modular LOTOS platform allows scalable micro tailored solutions without significant customization of core systems Efficient design that is adaptable to in-house or 3rd party modules Local Market Partnerships Track record of successful joint ventures and partnerships across the world Partnering with well placed and capitalized local partners syndicates financial and operating risk while generating synergies and efficiencies Particular focus on leveraging partners in emerging markets FY 2017A Total Cost Breakdown Less Capital Intensive Business Model (Net of Winnings Payout) % 7.3% 12.4% 11.4% 9.8% 10.4% HR Costs 26% Other Variable 21% Other Fixed 18% Agent Commissions Direct CoS 15% 6% Game Tax & Fees 14% ( 5) A 2015A PF 2016PF 2017PF 1,2 LTM 1,3 Discretionary Capex % Maintenance Capex %Capex / GGR 1 Excludes Capex and GGR attributable to discontinued operations in Italy, Peru, Jamaica, Russia, and Slovakia 2 Excludes 11.7m of payments for AMELCO betting platform 3 LTM as of 3/31/2018 June 2018 Public Slide 17 of 41

18 6b Strong & Established Partnerships Attractive point of entry in a given market, with limited capital expenditure requirements compared to full-scale M&A Opportunity to establish strategic partnerships with local players which offer substantial market knowledge, well-established sales network and recognized brand names Ability to invest in companies in which local partners see upside and are therefore willing to retain a controlling stake in Key Partnerships Country INTRALOTstake Contract type Product Key Local Partner Value INTRALOT Brings to the JVs LTM 1 EBITDA Contribution Inteltek 45.00% Management contract Sports Betting Turkcell WLA/System/RM 14% Eurofootball Group 49.00% + option for additional 2.00% Licensed operation Sports Betting Eurosadruzie Ltd. WLA/System 13% Azerinteltek 22.95% Licensed operation Sports Betting Turkcell WLA/System/RM 12% Tecno Accion Group 50.01% 12 facilities management (IT) contracts with state lottery operators & 1 licensed operation Lottery / Sports Betting HAPSA and Casino Club WLA 10% Bilyoner 50.01% Management contract Sports Betting Local Businessman WLA 9% Eurobet Group 49.00% + option for additional 2.00% Licensed operation Lottery Games Eurobet partner Ltd. WLA 3% Total 61% 1 LTM as of 3/31/2018 June 2018 Public Slide 18 of 41

19 7 Experienced Management Team Delivering Results INTRALOT is one of the global leaders in technology for the gaming industry, with leading positions in many countries EBITDA EVOLUTION BY GEOGRAPHICAL AREA 1 m 28% Balkans 2 Latin America RoW Rest of Europe EU 2 North America Oceania % 1% 11% 18% 21% 2% 1% 10% 21% 16% 12% 48% 30% 2011A 2017A 42% Management has achieved Revenue and EBITDA growth despite changes in gaming regulatory landscape Contribution to EBITDA from areas with higher credit rating has gradually increased from 28% to 42% in the last 6 years, in line with our strategy WELL ESTABLISHED PLAYER IN THE IT TO LOTTERIES US MARKET 3 INTRALOT Inc. (US) Established Dec 2001 Lottery contracts in 10 states + DC 4 Approximately 62M in population coverage (~19%) Market share: ~11% (in terms of wagers) Average US contract maturity: 7.1 years (FY17) Headcount at YE 2017 of approximately 530 WA WA OR OR NV CA CA ID NV MT MT ID WY UT UT CO AZ AZ NM ND ND MN MN SD ME SD WI ME WI V MI VE WY MI E NY NH NE NY NH NEIA IA WA MT IL ND MN PA CT IL OH PA CT N KS MO IN OR ID SD IN OH CO WV MD VA DE WI RI NJ ME MO V KS WY KY WV MIMD VA DE RI KY NE NY E NH AR TN NC IA N OKNV UT IL SC WV MD VA DE CO IN OH PA CT NM AR TN OK NC MO CA KS RI AL SC M KY A MS GA GA NC LO S TX NML OK AR TN AZ DC LA INTRALOT SC DC INTRALOT TX M A GA LO TX S DC L INTRALOT FL 1 Company Information. EBITDA levels as reported/ published in the respective years 2 EU excludes countries that have been classified as Balkans. Balkans defined as Greece, Turkey, Bulgaria, Croatia, Romania, Serbia, and Cyprus 3 Map depicts the Online IT lottery market landscape only (i.e. does not reflect instants or any other contracts) 4 Intralot also offers VLT monitoring services in GA and OH as well as Cooperative Services (CSP) in Ohio; Intralot SC contract has expired in March 2018 INTRALOT IGT SGI NORTHSTAR NJ NO LOTTERY June 2018 Public Slide 19 of 41

20 Financial Summary

21 Consolidated Income Statements for 1Q18 and LTM (in million) 1Q18 1Q17 % Change LTM Revenues (Turnover) % 1,115.9 Technology, Management & Rest Contracts % Licensed Operations (Payout related) % Payout (%) 71.8% 70.4% 1.4pps 70.4% GGR % nggr % Gross Profit % Gross Profit Margin (%) 21.7% 20.4% +1.3pps 22.2% EBITDA % EBITDA Margin (% Sales) 15.2% 15.5% -0.3pps 15.4% EBITDA Margin (% GGR) 30.1% 30.3% -0.2pps 29.6% EBT % 9.6 EBT Margin (% Sales) 4.7% 5.2% -0.5pps 0.9% NIATMI from Continuing Operations % NIATMI from Total Operations % June 2018 Public Slide 21 of 41

22 Financial Performance per Business Activity Segment LTM figures for the 12 Months Ended March 31 st, 2018 Consolidated Financial Statements for the 12 Months Ended December 31 st, 2017 in m B2B/ B2G B2C Supporting Functions & Centers of Excellence Total B2B/ B2G B2C Supporting Functions & Centers of Excellence Total Revenues , ,104.2 Services / Merchandise Wagers Net Drop GGR GGR (% Revenue) 100.0% 30.0% 100.0% 52.2% 100.0% 30.4% 100.0% 52.5% EBITDA (34.3) (34.7) EBITDA (% GGR) 41.3% 27.2% 29.6% 41.5% 27.3% 29.6% Net CAPEX (Paid) Excluding contribution from discontinued operations in Italy, Peru, Jamaica, Slovakia, and Russia 2 Include apportionment of indirect expenses related to Intralot SA projects; 11.8m in LTM and 12.4m in 2017 June 2018 Public Slide 22 of 41

23 Financial Summary Revenues / GGR ( m) 1, , Adjusted for the effects of discontinued operations in Italy, Peru, Jamaica, Slovakia, and Russia 992 1, % +0.6% 1,116 Revenues GGR A 2015A 2015Adj. 2016Adj. 2017A LTM 1 ( m) 29.7% 30.8% EBITDA 29.6% 29.6% 19.0% 18.3% 9.5% 9.3% 16.8% 16.4% 15.5% 15.4% % 149 EBITDA Gross EBITDA Margin 2 Net EBITDA Margin A 2015A 2015Adj. 2016Adj. 2017A LTM 1 1 LTM as of 3/31/ Defined as EBITDA/Revenues 3 Defined as EBITDA/GGR June 2018 Public Slide 23 of 41

24 Financial Summary (Cont.) Operating Cash Flow and Capex ( m) % +2.8% 151 Operating CF Discretionary Capex 114 Maintenance Capex A 2015A 2016A 2017A 1 LTM 2 23 ( m) LTM Cash Flow Available for Debt Service 2, Cash flow available for debt service and investments EBITDA Change in Working Capital Income Tax Maintenance Capital Expenditures Dividends Cash Flow Available for Debt Service 1 Excludes 11.7m of payments for AMELCO betting platform 2 LTM as of 3/31/ Excluding contribution from discontinued operations in Italy, Peru, Jamaica, Slovakia, and Russia June 2018 Public Slide 24 of 41

25 Capital Structure Drawn amount ( m) Current Debt Maturity Profile Following the successful bond refinancing in September last year, INTRALOT has successfully extended its debt maturity profile INTRALOT has no material debt maturity upcoming over the next two years Rating Agencies 500 Bond Existing Main Facilities Breakdown High Yield Bonds 250.0m Bond Loan 6.75% September m Bond Loan 5.25% September Term Loans 15.0m Term Loan Nomura, up to December 2022 $8.0m Term Loan BAML, April 2022 RCF $20.0m RCF BAML, 1 year RCFs (not drawn) 40.0m RCF Piraeus, up to December m RCF Eurobank, up to December 2022 NET DEBT 1 AND NET DEBT / EBITDA 2 Rating Agencies Rating Outlook 2018 Review Status B Negative Completed B+ Stable Pending B1 Negative Pending m, # 2.2x x x x x 528 Net Debt/EBITDA Net Debt 2014A 2015A 2016A 2017A 1Q18 1 Net debt calculated as Long-term debt plus Short-term debt and current portion of long-term debt plus Financial Leases less Cash and cash equivalents 2 Calculated as Net debt divided by LTM EBITDA. Net Debt and EBITDA levels as reported/ published in the respective periods 3 In early May 2018 a repurchase of Notes amounting to 5.0m was completed June 2018 Public Slide 25 of 41

26 Financial Policy Maximum leverage tolerated Contain net leverage at current levels post US expansion investment Cash, liquidity and debt management CAPEX Maintain strong liquidity at all times Cash balance of 223.3m as of March Currently, 80.0m of undrawn committed credit facilities Cash in Greek banking system limited to less than 7.0% of total deposits 1 New strategy expected to result in lower level of CapEx from 2019 onwards, maintenance CapEx in line with historical levels Majority of CapEx to be deployed towards extending and securing new U.S. contracts Increasing contribution from the more stable and higher margin operations Acquisition strategy No materialacquisitions contemplated in the medium term Dividend policy No dividend expected until target leverage is achieved Currency and risk management Surplus cash converted from local currencies into EUR or USD (> 50% of deposits); 70% of total Group Cash is held in hard currency (i.e. EUR or USD) FX risk mitigated via Forwards 1 More than 60% located in UK & European Union Banks June 2018 Public Slide 26 of 41

27 Alternative Selected Financial Metrics (in million) 1Q18 1Q17 % Change Proportionate Revenues % Proportionate GGR % Proportionate EBITDA % Adjusted EBITDA % 1Q18 FY17 Proportionate Gross Debt Proportionate Cash & Cash Equivalents (in million) 1Q18 FY17 Group Cash & Cash Equivalents, of which in Partnerships All other Entities Pro-Forma Cash Flow Shareholders of the Parent View, 1Q18 m Cash & Cash Equivalents, Dec 2017 EBITDA Net Dividends, and Fees from Partnerships WC, FX & All Other Tax Maintenance CAPEX Net Interest Cash Available for Investments Growth & Contract Renewals CAPEX Disposals/ M&A/ Investments Refinancing Fees & Expenses Net Loan & Leases Movement Cash & Cash Equivalents, Mar Calculated as Proportionate EBITDA of fully consolidated entities including EBITDA from equity investments in Italy, Peru, Greece, and Taiwan 2 Turkey (Inteltek & Bilyoner), Bulgaria (Eurofootball Group & Eurobet Group), Azerbaijan, Argentina & Jamaica June 2018 Public Slide 27 of 41

28 Pro-Forma CF Evolution Shareholders of the Parent View Pro-Forma Cash Flow Shareholders of the Parent View, 1Q18 m Historical Values Cash & Cash Equivalents, Dec 2017 EBITDA Net Dividends, and Fees from Partnerships WC, FX & All Other Tax Maintenance CAPEX Net Interest Cash Available for Investments Growth & Contract Renewals CAPEX Disposals/ M&A/ Investments Refinancing Fees & Expenses Net Loan & Leases Movement Cash & Cash Equivalents, Mar Q Q June 2018 Public Slide 28 of 41

29 APPENDIX

30 Recent Strategic Transactions Further Progress Company Strategy Company s Asset-light strategy evidenced by recent strategic transactions. New local market partnerships will maintain INTRALOT s global reach while reducing capital intensity and leveraging local expertise and networks Italy/Gamenet Peru/Nexus Group Bulgaria/Eurobet Jamaica/Zodiac International Investments Ltd Malta/Bit8 Slovakia/Olbena SRO Transaction/ Type Merger Sale Acquisition Sale Acquisition Sale Buyer/Seller Gamenet/INTRALOT Nexus Group/INTRALOT INTRALOT/Eurobet Zodiac International Investments Ltd/INTRALOT INTRALOT/Bit8 Olbena SRO/INTRALOT Consideration Contribution of 100% wholly owned Italian subsidiaries Cash proceeds of US$68.7m 1 Total consideration of 19.5m Cash proceeds of US$40.0m Consideration paid of c. 12.8m in total Cash proceeds of 1.7m Original Ownership 100% 100% 0% 24.97% 35% 51% Post- Transaction Ownership 20% in combined entity (Successfully IPO ed in December 2017) 20% 49% + 2% option 0% 100% 0% Obtain 20% share in a Leverage Nexus Group s EBITDA contribution of Purchase price 12 times the Bit8 products are a major Disengage from non- larger/stronger entity retail distribution c. 6.3m in FY17 annual net profit after tax pillar of our Digital profitable/ small markets Attractive valuation INTRALOT continues to be Synergies with Bulgarian attributable to INTRALOT s Transformation strategy Purchase price corresponds Dividend proceeds INTRALOT Peru s tech Eurofootball operations equity holders and a strategic asset in our to a valuation of 12 times Rationale Reduced capex Revenue/ Cost synergies provider Increase local expertise Net Debt reduction Investments in new product portfolio for which we needed to secure the LTM EBITDA Valued at 49.5m 2 in MSE Reduced capex products and projects development control facilitation Synergies & economies of scale 1 The consolidation price for the disposal of Intralot De Peru S.A.C amounted to 64.7m, corresponding to an exchange rate of $1.063 per 1 2 Gamenet Market Capitalization as at 6/5/2018, x Intralot s participation (i.e. 20%) June 2018 Public Slide 30 of 41

31 Revenue by Country Americas ( m) LTM Revenue % Total Chile 8 0% United States 97 9% Argentina 90 8% Brazil 31 3% Total % Europe ( m) LTM Revenue % Total Greece 46 4% Cyprus 12 2% Poland 90 8% Malta 93 9% Netherlands 16 2% Bulgaria % Germany 4 0% Ireland 4 0% Russia 2 0% Croatia 2 0% Total % Rest of the World ( m) LTM Revenue % Total New Zealand 5 0% Australia 21 2% Turkey 96 9% South Korea 1 0% Azerbaijan % Morocco 24 2% Total % June 2018 Public Slide 31 of 41

Revenue Evolution per Pillar Revenues per Pillar, 1Q18 m, %

8 1Q18 Revenues per Contract Type 195.1 70% 33.

m 187.4 3M18 7.9 6.1 1.7-1.2-4.8-2.0 195.

Management Pillar, 1Q18 m, % 3M18 1.6-0.2 33.

32 Revenue Evolution per Pillar Revenues per Pillar, 1Q18 m, % Technology Game Management 18% Q18 Revenues per Contract Type % 33.8 ( m, %) 12% Licensed Operations Licensed Operations Pillar, 1Q18 m M Q17 Poland Bulgaria Azerbaijan Argentina Cyprus Other 1Q18 Game Management Pillar, 1Q18 m, % 3M Technology Contracts Pillar, 1Q18 m M Q17 Turkey Morocco Russia 1Q18 1Q17 Chile Argentina United States 1Q18 June 2018 Public Slide 32 of 41

33 Key Revenue and EBITDA Contributors Netherlands 3.3, 1.2% Australia 4.0, 1.4% New Zealand 1.1, 0.4% Other 19.1% Turkey Netherlands 0.8, 1.9% New Zealand 0.7, 1.6% Australia Other 7.5% Turkey Malta Argentina 8.4% 7.1% Q18 Largest Revenue Contributors (in m, %) % 7.6% United States Malta Argentina 6.1% 8.1% 5.9% Q18 Largest EBITDA Contributors (in m, %) % 14.3% % 13.3% % United States Azerbaijan Bulgaria Azerbaijan 15.8% Bulgaria 1 Country Revenue and EBITDA figures include all operating and non-operating entities 2 USA metrics include also the Philippines project contribution June 2018 Public Slide 33 of 41

34 Contribution from Partnerships Partnership Stake 1Q18 EBITDA Contribution 1Q17 EBITDA Contribution Inteltek % 15% 14% Bilyoner % 8% 8% Eurofootball Group 2 Eurobet Group % + option for additional 2.00% 49.00% + option for additional 2.00% 12% 15% 4% 5% Azerinteltek % 13% 11% Tecno Accion Group % 8% 10% Total Partnership Contribution 60% 63% Intralot s Portion of EBITDA 63% 62% 1 Management Contract 2 Licensed Operation 3 12 Facilities Management (IT) Contracts with State Lottery and 1 Licensed Operation June 2018 Public Slide 34 of 41

35 OPAP Contract Developments Old OPAP Contract Value Chain 1 % 100 Contribution of Old OPAP Contract to Group Figures - approximating 2.5% of LTM 1Q18 Revenues - approximating 6.3% of LTM 1Q18 EBITDA 1 Contracts ends in July of Revenue Direct Cost HQ Overheads EBITDA Margin 1 Management estimation incorporating direct expenses and apportionment of indirect expenses related to the project/country June 2018 Public Slide 35 of 41

36 Financial Performance Available Cash Flow in m 2014A 2015A 2016A LTM 1 EBITDA Change in Working Capital (0.5) (41.9) Income Tax Paid (29.0) (28.2) (20.9) (33.9) (33.4) Maintenance Capex (25.1) (29.3) (23.4) (21.8) (23.0) License Renewals Dividends Paid (23.7) (67.7) (38.0) (34.0) (39.9) Cash Flow Available for Debt Service Before Discretionary Capex Cash flow available for debt service and investments 1 Excludes the contribution from discontinued operations in Italy, Peru, Russia, Jamaica, and Slovakia June 2018 Public Slide 36 of 41

37 Financial Performance P&L Statement in m 2014A 2015A 2015A A A A A 2 LTM 2 1Q17 2 1Q18 2 Revenue 1, , , , , , Cost of sales -1, , , , Gross profit Other operating income Selling expenses Administrative expenses Research and development expenses Other operating expenses EBIT % margin 5% 4% 8% 8% 10% 10% 10% 10% 9% 10% EBITDA % margin 9% 9% 13% 13% 17% 16% 16% 15% 16% 15% Income/(expenses) from participations and investments Gain/(loss) from assets disposal, impairment and write-off Interest and similar charges Interest and related income Exchange differences Profit/(loss) from equity method consolidation Operating profit/loss before tax from continuing operations Taxes Net profit/loss from continuing operations Net profit/loss from discontinued operations Net profit/loss (continuing & discontinued operations) Other comprehensive income/(expense) after tax Total income after tax Excluding discontinued operations in Italy, Peru, and Russia 2 Excluding discontinued operations in Italy, Peru, Russia, Jamaica, Slovakia, and Russia June 2018 Public Slide 37 of 41

38 Financial Performance Balance Sheet in m 2014A 2015A 2016A 2017A 1Q18 Assets Non-current assets Tangible fixed assets Investment property Intangible assets Investment in subsidiaries and associates Other financial assets Deferred tax assets Other long-term receivables Total Non-Current Assets Current assets Inventories Trade and other short-term receivables Other financial assets Cash and cash equivalents Total Current Assets Total assets 1, , , , Equity and liabilities Share capital Treasury shares Other reserves Foreign currency translation Retained earnings Minority interest Total equity Non-current liabilities Long-term debt Staff retirement indemnities Other long-term provisions Deferred tax liabilities Other long-term liabilities Finance lease obligation Total Non-Current Liabilities Current liabilities Trade and other short-term liabilities Short-term debt and current portion of long-term debt Current income taxes payable Short-term provision Total Current Liabilities Total equity and liabilities 1, , , , June 2018 Public Slide 38 of 41

39 Financial Performance Cash Flow Statement in m 2014A 2015A 2016A 2017A 1Q17 1Q18 EBITDA Interest and similar expenses Interest and related income Exchange differences Profit/(loss) equity method consolidation Gain/(loss) from assets disposal, impairment and write-off Income/(expenses) from participations and investments Depreciation and amortization Net profit before taxation from continuing operations Net profit before taxation from discontinued operations Net profit before taxation from total operations Depreciation and amortization Provisions Results from investing activities Interest and similar expenses Interest and related income Decrease/(increase) of Inventories Decrease/(increase) of Receivable Accounts (Decrease)/increase of Payable Accounts (except Banks) Income tax paid Net Cash from Operating Activities (Purchases)/Sales of subsidiaries, associates, joint ventures and other investments Purchases of tangible and intangible assets Proceeds from sales of tangible and intangible assets Interest received Dividends received Net Cash from Investing Activities Subsidiary's capital return Purchase of treasury shares Cash inflows from loans Repayment of loans Bond buy backs Repayment of leasing obligations Interest and similar expenses paid Dividends paid Net Cash from Financing Activities Net increase/(decrease) in cash and cash equivalents for the period Net foreign exchange difference June 2018 Public Slide 39 of 41

40 EBITDA Reconciliation 1,2 ( m) LTM 1 2 Operating profit / (loss) before tax Profit / (loss) equity method consolidation Exchange differences (10.6) (3.5) (3.0) Net interest expense Income / (expenses) from participations and investments Gain / (loss) from assets disposal, impairment and write-off EBIT Depreciation & Amortization EBITDA results do not include discontinued operations in Italy, Peru, and Russia, while 2016, 2017, and LTM results do not include discontinued operations in Italy, Peru, Russia, Jamaica, and Slovakia 2 LTM as of 3/31/2018 June 2018 Public Slide 40 of 41

41 September 2017 Confidential Final Page 41 of 40

2017 First Half Financial Results

August 2017 Public Final Page 1 of 19 2017 First Half Financial Results August 31 st, 2017 August 2017 Public Final Page 2 of 19 Disclaimer By reading or attending the presentation that follows, you agree