Presentation to Investors
June 2017 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. 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June 2017 | Page 2 Agenda
1. Overview 2. Key Strengths 3. Company Strategy 4. Performance Overview & Financials 5. Conclusion 6. Appendix 1. Overview
June 2017 | Page 4 Global Gambling Market – 2016 Snapshot
Global GGR, 2016E Global GGR per region, 2016E
4% 10% 11% 19%
€117b €355b €110b €98b North Global Asia Europe America GGR GGR GGR GGR 81% 89% 96% 90%
Bingo / Other Betting
13 14% 6% 6% 51 Casino 122 €10b €355b €17b €3b South Global Oceania Africa 65 America GGR GGR GGR GGR
104 86% 94% 94% Gaming Machines Lotteries Interactive Retail
Source: H2 Gambling Capital Summary May’16 June 2017 | Page 5 Regulatory and Industry Trends Overview
Key Sector Trends INTRALOT’s Position
. Regulation Initiatives Global regulation changes, driven by country and state budget deficits and increased demands for social welfare spending fuel: Leading partner for organizations that want to compete in a . Liberalizations of gaming markets, mainly Internet and mobile markets regulated interactive competitive . Privatizations of state owned lotteries environment
. Crackdowns on illegal gaming
. End-to-End player experience
. New business models focus on growing consumer demand for entertainment Offers a personalized player . Personalized game offering and content experience
. Customer analytics
. Technology convergence Robust, efficient and versatile . An ‘All-in-one’ gaming platform delivering a unified customer experience gaming platform that converges . Convergence of land based and interactive channels land-based and interactive channels
. Distribution channels Omni-Channel Approach . Mobile is now the primary access point to online retail for most consumers
. Competition Offers extensive business support . Major international competitors shift focus to VLT market and achieving for optimal customer experience synergies
June 2017 | Page 6 Global Presence - INTRALOT at a Glance
Europe U.S.A. €23.4bn wagers handled
More than 51,000 Retailer terminals 71,500 Retailer terminals Oceania 26,000 VLT Systems 36,000 Horizon Monitors Asia 130 Patents 8,200 Self-service terminals 34,000 Horizon Monitors
22,000 Retailer terminals Africa 30,000 VLT Systems South 11,500 Horizon Monitors America
3,400 Retailer terminals 2,300 Horizon Monitors 6,900 Retailer terminals 160 VLT Systems 3,500 Horizon Monitors 306,000
INTRALOT Retail Solutions WORLDWIDE
32 55 87 3,4501 1.32 bn Countries Jurisdictions Contracts Employees Revenues in 2016
INTRALOT is the leading supplier of integrated gaming and transaction systems, innovative game content, sports betting, and interactive gaming services to state Lotteries worldwide
1A global workforce of approximately 5,300 employees (3,450 of which in subsidiaries and 1,850 in associates) June 2017 | Page 7 Overview of INTRALOT – A Global Gaming Technology and Service Company
Business Description Our Three Pillars
. INTRALOT is a global leader in the supply of integrated gaming systems and services
. Designs, develops, operates and supports customized software and hardware for the gaming industry
. Provides innovative technology and services to state and state- licensed lottery and gaming organizations worldwide Licensed Operations Management Contracts Technology
. Holds licences for full games operation
. Founded in 1992 and listed on the Athens Stock Exchange since 1999
. Operates a diversified and stable portfolio of 87 contracts and licenses
across 55 jurisdictions and 5 continents . Operation and . Day to day . Provision of control over every operations hardware, software, . INTRALOT has a strong track record of contract renewal aspect of the gaming management and telecom . Revenues of €1,323.6m and EBITDA of €175.8m (13.3% margin) in FY16 offering . Includes marketing, solutions to state or state-licensed . Average sovereign rating of operations in the high BBB/ Baa to low A area POS optimisation, risk management operators FY16 Revenue Breakdown . Installation, maintenance and By Geography By Business Activity support Technology RoW . Typical contract . Typical contract . Typical contract 16% 19% structure structure structure Europe . Open-ended . Multi-year with . Multi-year with 40% market licence renewal options renewal options Licensed Operations . Revenues . Fixed percentage . Fixed percentage Management 75% Contracts generated of wagers of wagers America 9% 41% through wagers
June 2017 | Page 8 INTRALOT Certifications & Memberships
Responsible & Reliable Partner Highlights
. 1st Vendor to Achieve WLA As member of the UN Global Compact, SCS Certification INTRALOT is a global corporate citizen . 1st Vendor to Responsible committed to sustainable development, and is an active proponent of the Achieve ISO principles of responsible gaming, 20000 possessing the WLA Responsible Certification Gaming Framework Certificate . 17 operations certified as per both WLA (SCS) and ISO 27001 . The Company maintains the highest security security certification certifications.
Reliable . INTRALOT is the first international vendor in the gaming sector that has Leading member in all major Lottery and Gaming Associations been certified according to the WLA globally: Security Control Standard in 2012
. Moreover, the Company has been certified with the ISO 27001 for its (ISMS) Information Security Platinum Premium Top Star Contributor Partner Sponsor Contributor Management System and maintains the ISO 20000-1 certification on Information Technology Service Management
Gold Gold Member Sponsor Member
June 2017 | Page 9 2. Key Strengths
June 2017 | Page 10 Strengths Overview
7 1 Management experienced Attractive industry with at renewing contracts and sustainable future growth delivering revenue and prospects EBITDA growth
6 2 Leading position in the Competitive EBITDA sector with technological Margins innovations creating significant barriers to entry
5 3 Shift to asset-light model Diversification and scale and stronger cash flow across geographies and generation 4 business activities Highly visible recurring revenues secured by long- term contracts
June 2017 | Page 11 1 Attractive Industry with Sustainable Future Growth Prospects
Focus on lottery and betting
Global Gaming Market GGR Evolution per product (€bn) CAGR 11-15 16-20 402 379 390 +1.6% +1.9% 357 367 14.1 347 349 355 13.8 324 337 13.7 +1.6% +2.6% 12.5 13.1 13.4 71.4 12.2 12.5 12.7 67.7 69.5 +0.6% +3.6% 11.9 62.1 64.4 66.1 61.2 61.0 63.1 59.2 +5.2% +4.3% 136.4 140.6 127.7 132.3 +2.2% +2.7% 131.7 133.6 122.2 122.0 119.5 126.2 Others 57.2 60.2 48.7 50.9 52.8 55.4 39.8 41.2 43.2 47.2 Gaming Machines Casino 93.4 95.7 98.2 101.9 102.0 104.3 107.1 109.7 112.7 116.1 Betting 2011A 2012A 2013A 2014A 2015A 2016E 2017E 2018E 2019E 2020E Lotteries Focus on the interactive channel/ Strengthen INTRALOT’s footprint through AMELCO agreement
Global Interactive Gaming Market GGR Evolution per region (€bn) CAGR 53 11-15 16-20 49 46 +5.5% +18.4% 42 10.6 9.6 +9.1% +5.9% 38 8.9 35 +10.9% +8.0% 32 7.7 5.4 14.2 28 13.4 +13.6% +5.9% 26 5.2 12.7 24 4.8 12.0 4.3 11.3 4.1 10.5 Americas 4.2 9.8 8.3 9.0 Asia 7.4 24.9 21.7 23.0 18.3 19.8 15.1 16.5 Europe 10.9 12.1 13.3 RoW 1.5 1.7 1.7 2.3 2.5 2.7 2.8 3.0 3.2 3.4 2011A 2012A 2013A 2014A 2015A 2016E 2017E 2018E 2019E 2020E
Source: H2 Gambling Capital Summary May’16. Data for the Fiscal Years 2016-2020 are estimated by H2GC. June 2017 | Page 12 Leading Position in the Sector with Technological Innovations Creating 2 Significant Barriers to Entry Licensed Operations
Country % of 12M16 EBITDA
#1 market position 24.3%
Leading market position 13.0%
Total 10 countries1 37.4%
INTRALOT enjoys leading positions in licensed gaming in many of its countries of operations
1 INTRALOT also operates in Slovakia
June 2017 | Page 13 Global Leader in the Global Gaming Industry 2 Technology and Management contracts
Leading Positions Across the World
• Well diversified portfolio with balanced presence in developed Won Probability of (through new sales channels) and developing markets (high Processes that we submitted the Successful Contract winning offer GDP growth) Acquisition for any Given Bidding 18% • Approximately 24% market share in the US in IT to lotteries Process (excluding Lost (11 states) and c.48% in Argentina (11 states) in IT to lotteries Processes that were awarded pending/ cancelled 36% to another bidder processes): • Provider of IT to Lotteries in Taiwan, South Korea, New South Wales (Australia), etc. Cancelled/ Pending 42% Processes that did not result to • Recurring revenues – average contract term of 8 years an award yet or have been 46% cancelled • In 2016, Greece represented less than 3.0% of the Group’s Revenue
Source: INTRALOT, 2013 – 2016 (Sample of 28 Opportunities)
Well Established Player in the IT to lotteries US market
MN WA MT ND
SD ME OR ID WI VE WY MI NY NH INTRALOT Inc. (US) NE IA IL PA CT NV UT OH IN NJ Established Dec 2001 Source: INTRALOT CO MO KS MD DE RI CA KY WV VA TN AZ NM OK AR NC SC ● 60M population coverage M AL GA LA S DC INTRALOT TX ● 24% market share (contracts in 10 states + DC)1
FL
1 Intralot has presence also in GA through a VLT monitoring contract INTRALOT IGT SGI NO LOTTERY INTRALOT is one of the global leaders in technology for the gaming industry, with leading positions in many countries June 2017 | Page 14 3 Diversification and Scale Across Geographies and Business Activities
EBITDA by Business Activity
. Diversified portfolio with 87 contracts and Technology licenses, with presence across 55 jurisdictions in 28% Licensed 32 countries Operations 41% . Well diversified portfolio with balanced presence in developed (through new sales channels) and Management developing markets (high GDP growth) Contracts 31%
. Majority of revenues, cash resources and debt FY16 EBITDA: €175.8m obligations outside Greece, thereby mitigating individual sovereign risk EBITDA by Geography2
. New Zealand; 1% Russia Other Approximately €23.4bn wagers handled annually 1% 1% Netherlands; 3% 1 Morocco . Approximately 3,450 people employed 6% Turkey worldwide Malta 20% 6% . Jamaica Average sovereign rating of operations in the 6% high BBB/ Baa to low A area Azerbaijan; 8% United States 20%
Argentina 8% Australia Bulgaria 8% 12%
FY16 EBITDA: €175.8m 1 5,300 in total, of which 3,450 in subsidiaries and 1,850 in associates 2 Countries with negative EBITDA have been excluded from the chart June 2017 | Page 15 4 Highly Visible Recurring Revenues Secured by Long-Term Contracts
Major Contract Expiry (Without Renewal Options) Contract type % of FY16EBITDA1,2 . 85% of revenues secured through Morocco 2018 6% multi-year contracts or renewable
licenses until 2021 Turkey (Inteltek) 2018 14%
. Average contract term of 8 4% years Greece (OPAP) 2018
. Strong track record of contracts New Zealand 2022 1% renewal Malta 2022 6% . 11 licensed operations in 10 countries with leading market Argentina (13 Contracts) 2023 8% position in the majority of them Azerbaijan 2025 8% . Contracts with long-term duration, providing stability to revenue Greece (Hellenic Lotteries) 2026 1% stream US (14 Contracts) 2027 20% . Unique operational model in countries allowing INTRALOT to Bulgaria 12% Open micro tailor products for distribution Market Jamaica License 6% . Competition (where applicable) is local – no global competitor in licensed operations markets Licensed Operations Management Contracts Technology
1 Excluding countries with negative EBITDA 2 Management estimation incorporating direct expenses and apportionment of indirect expenses related to the project/ country June 2017 | Page 16 5 Shift to Asset-Light Model and Stronger Cash Flow Generation
. Two pillars to the shift to asset-light Less CAPEX Intensive Business Model business model Capital expenditure1 (€m) Capital expenditure1/ 71 . Syndicate risk and reduce capex by 67 GGR 63 61 entering into JVs with local partners 58 allowing for minimum equity check while maintaining and selling new 9.6% 9.0% 7.4% 7.3% 7.3% contracts
. Optimize product development by minimizing customization requirements 2013A 2014A 2015A 2015A 2 2016A 2
. Various criteria to select local partners FY 2016A total cost breakdown . Local experience in industry and ability to deliver Other fixed 15% Game tax 15% . Extensive distribution chain Other variable costs . Well capitalized and long-term Winnings 29% Agents payout HR costs commissions presence 55% 21% 14% . E.g. large utility or Fixed costs Direct COS telecommunication companies 16% 18% Other variable . Highly flexible cost base with c.85% of 17% costs variable
1 Purchases of tangible and intangible assets 2 Excluding Italy and Peru discontinued operations June 2017 | Page 17 5 Strong & Established Partnerships in the Gaming Sector
Rationale for Entering Into JVs List of Partnerships
. Attractive point of entry in a given FY16 1Q17 market, with limited capital Country INTRALOT stake Contract type EBITDA EBITDA Contribution Contribution expenditure requirements compared to full-scale M&A Turkey 45.00% Management contract 16% 13% (Inteltek)
. Opportunity to establish strategic Turkey partnerships with local players 50.01% Management contract 7% 7% (Bilyoner) which offer substantial market knowledge, well-established Bulgaria 49.00% + option sales network and recognized (Eurofootball for additional Licensed operation 13% 13% Group) 2.00% brand names 49.00% + option Bulgaria for additional Licensed operation 1% 4% (Eurobet Group) . Ability to invest in companies in 2.00% which local partners see upside and are therefore willing to retain a Azerbaijan 22.95% Licensed operation 9% 10% controlling stake in
Jamaica 24.97% Licensed operation 8% 10%
12 facilities management (IT) contracts with state lottery Argentina 50.01% 9% 9% operators & 1 licensed operation
Total 63% 66%
June 2017 | Page 18 6 Competitive EBITDA Margins
Revenues (€m) EBITDA margin (%)
5,000 45.0% 38.3% 4,500 37.9% 40.0%
4,000 35.0% 34.1% 3,500 27.8% 30.0% 25.8% 3,000 23.0% 25.0% 2,500 20.0% 2,000 15.0% 1,500 13.2% 13.3% 10.0% 1,000 642
500 5.0% 682 0 0.0% Peer A Peer B Peer C Peer D Peer E Peer F
GGR (Net Revenues) Payout Gross EBITDA Margin Net EBITDA Margin
On a GGR basis, INTRALOT’s profitability is at gaming industry averages
1Peers Sample (in Alphabetical order): Aristocrat Leisure Ltd., Everi Holdings, International Game Technology plc, Ladbrokes Coral Group, Penn National Gaming & Scientific Games Corporation Source: Companies’ Annual Reports & Press Releases June 2017 | Page 19 Management Experienced at Renewing Contracts and Delivering 7 Revenue and EBITDA Growth
Revenue1 Evolution by Region (€m)
. Management has achieved Revenue and EBITDA Europe Americas RoW growth despite changes in gaming regulatory landscape 1,853 1,915 . On a like for like basis, 2016A Revenue and 1,539 292 356 EBITDA grew by +19.2% and +20.6% respectively 1,374 1,324 2,3 1,202 296 1,235 compared to 2015A 659 246 549 252 134 292 459 . 376 451 Experienced team has demonstrated in-depth 540 knowledge of the gaming sector dynamics 555 948 964 692 677 784 532 . Keys wins 388 - Strong track record of contracts’ renewals 2011A 2012A 2013A 2014A 2015A 2015A 3 2016A - 42% win rate in international tenders EBITDA Evolution by Region (€m) (2013-2016) Europe Americas RoW - Successfully entered and gained market share on the US market 195 178 177 176 175 165 154 - Successful implementation of internal 56 48 19 73 80 restructuring measures aimed at improving 80 88 47 51 efficiency 60 58 68 58 65 88 88 - Established strong and promising partnerships 70 44 29 27 23 2011A 2012A 2013A 2014A 2015A 2015A 3 2016A
1 Revenue values include eliminations 2 LFL basis excluding FX impact 3 Excluding Italy and Peru discontinued operations June 2017 | Page 20 3. Company Strategy
June 2017 | Page 21 Strategy Focusing on Higher Margins and Lower Debt Loads
EBITDA impact Cash Flow impact . New distribution channels (Self Service Terminals, Products & Services Mobile) focus . Sport betting . VLT monitoring
Technology as . Core system Global offering enabler . Content management . CRM Operational excellence . Referencing in 50+ jurisdictions (“know how”) . Fertilization
In existing Examples business . Local relations/ know how . Intralot de Peru . Regulatory constraints . Intralot Italia Local partnerships . Capital release (equity/ capex) . Eurobet In new . Topline and cost synergies ventures
. Globalization Operational . Synergies . Operating leverage
. Non core asset disposal Efficiencies Asset . WC optimization
Financing . De-leverage . Debt re-pricing
Shift to “asset-light” business model generating positive EBITDA and Cash Flow impact
June 2017 | Page 22 Progress against strategic objectives
Year 1 Progress Progress Level
EBITDA € +11m
Cash Flow1 € +24 m
Net Debt / EBITDA 2.8 2017 Target is to focus on . Strategic partnership with AMELCO operational Global offering . Lotos 10 completion is expected within 2017 efficiencies
Successful . Merger of activities in Italy with Gamenet . Sale of 80% of INTRALOT de Peru Local partnerships . Acquisition of 49% stake in Eurobet Delay . Oceania transaction
. Successful refinancing with decreased servicing Efficiencies cost and increased committed lines in the new RCF
Low Medium High 1 Assuming that all new EBITDA is cash; Benefits from refinancing will be visible from 2017 onwards June 2017 | Page 23 4. Performance Overview & Financials
June 2017 | Page 24 Recent Business Milestones
Key Events Over the Last Twelve Months
Amelco – INTRALOT and AMELCO announced the signing of a definitive agreement for a strategic partnership to develop a suite of next-generation sports betting products
Mar Greece (OPAP) – After 20 years of successful partnership, INTRALOT’s contract with OPAP may end in
2018 2017 Feb USA (Idaho) – Signed contract to become the Idaho Lottery provider for a 10-year term with the option to extend for up to a maximum of two (2) additional 5-year terms
Jan Chile – Successful Go Live of the 10 year term contract with the State Lottery organization
Nov Peru – Completion of the Intralot de Peru transaction (Nexus Group)
Morocco – Signed a 1-year extension with both lotteries Sep Successful early Refinancing of a €250m bond with significantly better terms and increased RCF lines by €40m
Aug Australia and New Zealand – INTRALOT entered into discussions on an exclusive basis with Tatts regarding a potential sale of INTRALOT’s Australian and New Zealand businesses Jul Bulgaria – Completion of the acquisition of a 49% stake in Eurobet, a numerical and instants tickets
2016 operator in Bulgaria Jun Italy – Completion of the Gamenet transaction
May Philippines - Renewal of the contract with Pacific Online Systems Corporation (POSC) for a 3 year term
Netherlands - Renewal of the contract with the Nederlandse Staatsloterij/De Lotto for a 3 year term Apr
Brazil - Renewal of the contract in with Minas Gerais for a 6 year term Mar
June 2017 | Page 25 Healthy FY16 Performance
Key Metrics (€mm) Key Takeaways
Revenues . Healthy revenue growth both in FY16 and 4Q16 (+7.1% and +7.5% respectively, compared to the same prior year period) +7.1% 1,235 1,324 . Increased sales in Bulgaria, Turkey and North America more than counterbalanced decreased sales in Azerbaijan and South America +7.5% 341 366 (Argentina, Jamaica and Brazil)
. EBITDA in the twelve-month period grew by 6.6%, whereas 4Q16 12M15 12M16 4Q15 4Q16 EBITDA increased by 18.6%
EBITDA . On a yearly basis, EBITDA margin, from continuing operations, Margin: 13.3% 13.3% 12.8% 14.1% remained steady at 13.3%, showcasing operating profitability resilience as the Group fully absorbed a payout ratio increase of 165 176 +18.6% 3.5pps 44 52 . Operating Cash-flow increased significantly in FY16 at €168.1m vs.
12M15 12M16 4Q15 4Q16 €113.8m in FY15. The growth is mainly attributed to WC improvement (+€46.8m vs. FY2015) due to efficient management Operating cash flow and WC normalization
168
114 “The strongly positive results of 2016 in both growth and profitability reflect important transformations that have taken place over the past couple of years across operational capabilities, project management, cost structure, and Products and Services portfolio investments. A 12M15 12M16 series of M&A transactions greatly enhanced our business Net capex1 development potential through strong local partnerships and diversified portfolio offering. The past year was also marked by tremendous 69 improvements in INTRALOT’s financial structure in a way that secures 63 future savings and a clear funding horizon until 2021 while affirming international investors’ confidence in future value creation.”
12M15 12M16 Antonios Kerastaris, Group CEO
Note: FY and 4Q results do not include discontinued operations in Italy, Peru and Russia 1 Purchases of tangible and intangible assets less proceeds from sales of tangible and intangible assets June 2017 | Page 26 1Q17 Performance
Key metrics (€m) Key takeaways
Revenues . Revenue growth in 1Q17 (+20.6% compared to the same period for +20.6% the prior year) 368 305 . Increased sales in Bulgaria, Azerbaijan, and Jamaica more than counterbalanced decreased sales in the US due to last year’s excessive Powerball effect
1Q16 1Q17 . EBITDA in the three month period grew by 4.3% compared to 1Q16
EBITDA . On a yearly basis, EBITDA margin, from continuing operations, decreased to 12.6% compared to 14.6% in 1Q16, as a result of the Margin: 14.6% 12.6% product mix change and last year’s Powerball effect 47 45 . Operating Cash-flow posted a decrease in 1Q17 at €39.1m vs. €41.2m in 1Q16. On a pro-forma basis, i.e. excluding the operating cash-flow contribution of our Italian and Peruvian entities in 1Q16 1Q16 1Q17 (€7.0m), there is a significant improvement (€39.1m vs. €34.2m Operating Cash Flow pro-forma) driven by better EBITDA performance, less taxes and improved working capital compared to the prior year
41 39 34 “Robust revenue growth and improved profits registered in 1Q2017 is driven by our strategic decisions to focus on key markets as well as products & services portfolio
1Q16 1Q16 Pro-Forma 2 1Q17 diversification. All the transformational initiatives undertaken over the last two years are depicted both at profit and cash- 1 Net Capex flow levels, considerably improved from a year ago. With a significantly improved financial structure and operational 25 €11.7m towards the performance, we are also reaping the fruits of lower debt 11 11 AMELCO servicing costs and enhancing our credit grade outlook by agreement rating agencies that boost our confidence going forward.”
2 1Q16 1Q16 Pro-Forma 1Q17 Antonios Kerastaris, Group CEO 1 Purchases of tangible and intangible assets less proceeds from sales of tangible and intangible assets 2 Figures excluding the operating cash-flow & net CAPEX contribution of our Italian and Peruvian entities in 1Q16 (€7.0m & €0.5m respectively) June 2017 | Page 27 Key Performance Highlights
Revenues EBITDA and EBITDA margin EBITDA EBITDA Margin €m €m 1,915 14.6% 1,853 13.3% 13.3% 12.7% 12.6% 1,539 1,324 1,235 9.5% 9.3%
195 175 177 176 305 368 165
45 47 1 1 1 2013A 2014A 2015A 2015A 2016A 2016Q1 2017Q1 2013A 2014A 2015A 2015A1 2016A 1 2016Q11 2017Q1
Operating cash flow and capex Net debt2 and Net debt / EBITDA3
€m Operating CF CAPEX €m Net Debt Net Debt/EBITDA
168 2.9x 2.9x 2.9x 153 2.8x 139 2.2x 114 2.1x
67 71 58 65 478 495 487 509 41 39 403 381 25 11
4 2013A 2014A 2015A 2016A 2016Q1 2017Q1 2013A 2014A 2015A 2016A 2016Q1 2017Q1
1 12M15,12M16 & 1Q16 results do not include discontinued operations in Italy, Peru and Russia 2 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 3 Calculated as Net debt divided by LTM EBITDA 4 2016Q1 Net Debt & LTM excludes the contribution of Italy and Peru June 2017 | Page 28 Loan Portfolio
7yr Senior Unsecured Notes Global Coordinators: Nominal €250 mil. amount Joint Book runners: Expiration May 15, 2021 – NC 3
Coupon 6.00%
5yr Senior Unsecured Notes Nominal Joint Book runners: €250 mil. amount Expiration September 15, 2021 – NC 2 Co-Managers: Coupon 6.75%
Committed Facilities
Amount Approved lines €240 mil. Expiration Dec. 2019 Participant banks: Interest Rate 4.00%-5.50% + Euribor
June 2017 | Page 29 Rating Agencies and INTRALOT
“Our assessment of Intralot's business risk profile is constrained by its significant exposure to emerging markets…we acknowledge that the disposals in Italy and Peru have improved group margins and somewhat reduced its exposure to emerging markets” S&P Global Ratings
“Intralot's corporate family rating (CFR) primarily reflects… the reduced company's size following recent M&A activity…significant exposure to certain emerging markets…” MOODY’s Investors Service
GR Rating agencies Rating Outlook Change1 Sovereign Rating
“Although Intralot’s high gross B Stable Β- leverage remains not fully aligned with a ‘B+’ rating, the B+ Stable CCC business profile is commensurate with a ‘BB’ rating category for the sector” B1 Negative Pending Caa3 Fitch Ratings
1Change compared to 2016 rating June 2017 | Page 30 Financial Policy
Maximum leverage Aiming at a net leverage below 2.0x within the next years. INTRALOT can tolerate a peak leverage at up to tolerated 3.00x. Limits to be reviewed post M&A and expectations on new projects
Cash, liquidity and Maintain strong liquidity at all times. Most of the cash held in the UK, The Netherlands & Luxembourg whereas debt management our reliance on the Greek banking system is limited to less than 7% of total deposits
INTRALOT’s new strategy is expected to result in a lower level of capex. INTRALOT maintains flexibility in its CAPEX capex plan to meet its financial policy guidelines.
Acquisition strategy No material acquisitions contemplated in the medium term
INTRALOT is currently not paying any dividends to its shareholders and does not intend to pay dividends in the Dividend policy future until target leverage is achieved
Working capital has improved significantly in 2016 following the spike in 2015 and is not expected to have Working capital significant spikes in the next years
Currency and risk Surplus cash is regularly converted from local currencies into EUR or USD (> 50% of deposits) whereas FX risk management related to the payment of dividends is mitigated via Forwards .
IFRS standards, matching all international standards for corporate governance, reporting systems aligned to Accounting listed companies
June 2017 | Page 31 5. Conclusion
June 2017 | Page 32 INTRALOT – A Global Gaming Technology and Service Company
1 . Presence in 32 countries on 5 continents balanced between developed markets and developing markets . Developed markets offer access via long term contracts to stable recurring revenues while developing markets provide exposure Global offering to higher GDP growth with local . No country contributes more than 20% of FY16 EBITDA1 partnerships . Strong contract diversity . Portfolio of 87 contracts and licenses across 55 jurisdictions and 5 continents . Focus on profitable markets and contracts
2 . Global leader with more than 130 patents in gaming technology and gaming management contracts Gaming . In IT lotteries, 24% market share in the US (10 states + DC) and c.48% market share in Argentina (11 states) technology . Innovative end to end solutions in every business activity leadership . Focus on core areas of expertise primarily recurring long-term managed services and technology contracts which do not require significant capital investments
. 1st Vendor to Achieve WLA SCS Certification; 17 operations certified as per both WLA (SCS) and ISO 27001 security certifications
3 . Contracts with long-term duration provide stability to revenue streams Revenue . Until 2021, 85% of revenues are secured through multi-year contracts or renewable licenses visibility and . Average contract term of 8 years improved . Strong track record of contracts renewal margins . Shift to “asset-light” business model driving higher margin, lower capex performance and higher cash flow resiliency
. Highly flexible cost base with c.85% of costs variable
4 Sustainable . Cash proceeds from business sales and asset-light shift used to reduce debt capital . Group to benefit from lower interest costs structure . Focus on more conservative financial policy
5 . Maintain strong liquidity at all times
. Most of the cash is held in the UK, The Netherlands & Luxembourg whereas reliance on the Greek banking system is limited to less than 7% of total deposits Financial . New asset-light shift is expected to result in lower and more flexible level of capex policy . No material acquisitions contemplated in the medium term
. INTRALOT is currently not paying any dividends to its shareholders and does not intend to pay dividends in the future until target leverage is achieved 1 Excluding countries with negative EBITDA June 2017 | Page 33 6. Appendix
June 2017 | Page 34 Financial Performance – P&L
in €m 2013A 2014A 2015A 2015A1 2016A1
Revenue 1,539.4 1,853.1 1,914.9 1,235.5 1,323.6
Cost of sales -1,271.5 -1,582.9 -1,653.3 -1,001.7 -1,090.5
Gross profit 267.9 270.2 261.6 233.7 233.1
Other operating income 17.4 18.6 24.9 23.1 33.1
Selling expenses -40.2 -60.3 -66.4 -56.6 -56.3
Administrative expenses -120.8 -119.9 -125.0 -89.7 -87.4
Research and development expenses -7.0 -7.2 -6.1 -6.1 -4.7
Other operating expenses -14.0 -13.3 -10.0 -5.2 -9.9
EBIT 103.3 88.1 79.0 99.3 107.9
% margin 7% 5% 4% 8% 8%
EBITDA 194.8 175.4 177.2 164.9 175.8
% margin 13% 10% 9% 13% 13%
Income/(expenses) from participations and investments 12.4 0.0 -0.2 -0.2 -17.5
Gain/(loss) from assets disposal, impairment and write-off -3.0 -1.5 -2.0 -0.7 -8.6
Interest and similar charges -55.4 -70.8 -68.6 -67.8 -87.5
Interest and related income 10.4 12.5 18.0 17.9 11.8
Exchange differences -11.1 10.6 3.6 3.5 3.1
Profit/(loss) from equity method consolidation -3.0 -2.3 -4.1 -4.1 -4.6
Operating profit/loss before tax from continuing operations 53.6 36.6 25.7 47.9 4.8
Taxes -32.2 -44.2 -46.4 -45.1 -32.5
Net profit/loss from continuing operations 21.4 -7.6 -20.7 2.8 -27.8
Net profit/loss from discontinued operations 0.0 0.0 0.0 -23.4 72.6
Net profit/loss (continuing & discontinued operations) 21.4 -7.6 -20.7 -20.7 44.9
Other comprehensive income/(expense) after tax -33.9 5.6 -7.2 -7.2 -8.7
Total income after tax -12.6 -2.1 -27.8 -27.8 36.1
1 Excluding Italy and Peru discontinued operations June 2017 | Page 35 Financial Performance – Balance Sheet
in €m 2013A 2014A 2015A 2016A Assets Non-current assets Tangible fixed assets 199.4 182.8 166.4 127.0 Investment property 0.0 0.0 5.8 6.0 Intangible assets 353.4 348.9 328.8 329.6 Investment in subsidiaries and associates 25.8 32.6 40.9 180.8 Other financial assets 43.5 36.9 26.1 21.9 Deferred tax assets 14.7 9.0 9.1 6.8 Other long term receivables 77.5 60.6 70.2 22.4
Current assets Inventories 48.3 52.0 42.6 32.3 Trade and other short-term receivables 221.3 215.1 202.7 170.0 Other financial assets 3.6 0.3 0.0 0.0 Cash and cash equivalents 1,43.3 416.9 276.6 164.4 Total assets 1,130.8 1,355.1 1,169.3 1,061.1
Equity and liabilities Share capital 47.7 47.7 47.7 47.7 Treasury shares 0.0 -0.5 -0.5 -1.7 Other reserves 63.8 59.8 62.2 56.0 Foreign currency translation -61.0 -57.1 -59.4 -61.2 Retained earnings 215.8 167.6 79.6 86.7 Minority interest 77.4 100.0 77.8 68.9 Total equity 343.7 317.5 207.4 196.5 Non-current liabilities Long-term debt 350.3 557.4 716.1 643.9 Staff retirement indemnities 6.9 7.1 6.9 5.4 Other long-term provisions 13.7 6.1 6.6 10.9 Deferred tax liabilities 8.1 14.7 16.1 16.0 Other long-term liabilities 12.1 14.2 19.1 17.3 Finance lease obligation 19.2 8.6 2.0 0.7
Current liabilities Trade and other short-term liabilities 181.4 175.4 135.3 128.1 Short-term debt and current portion of long-term debt 176.9 232.3 36.2 14.7 Current income taxes payable 11.3 13.6 15.0 17.6 Short-term provision 7.2 8.2 8.6 10.0 Total liabilities 787.1 1037.6 961.9 864.6 Total equity and liabilities 1,130.8 1,355.1 1,169.3 1,061.1
June 2017 | Page 36 Financial Performance – Cash Flow Statement
in €m 2013A 2014A 2015A 2016A EBITDA 194.8 175.4 177.2 175.8 Interest and similar expenses -55.4 -70.8 -68.6 -87.5 Interest and related income 10.4 12.5 18.0 11.8 Exchange differences -11.1 10.6 3.6 3.1 Profit/(loss) equity method consolidation -3.0 -2.3 -4.1 -4.6 Gain/(loss) from assets disposal, impairment and write-off -3.0 -1.5 -2.0 -8.6 Income/(expenses) from participations and investments 12.4 0.0 -0.2 -17.5 Depreciation and amortization -91.5 -87.3 -98.2 -67.9 Net profit before taxation from continuing operations 53.6 36.6 25.7 4.8 Net profit before taxation from discontinued operations – – - 84.5 Net profit before taxation from total operations 53.6 36.6 25.7 89.3 Depreciation and amortization 91.5 87.3 98.2 86.9 Provisions 14.6 10.8 9.6 25.4 Results from investing activities -2.6 -10.5 -0.2 -88.9 Interest and similar expenses 55.4 70.8 68.6 88.8 Interest and related income -10.4 -12.5 -18.0 -12.0 Decrease/(increase) of Inventories -3.9 -5.2 1.2 2.8 Decrease/(increase) of Receivable Accounts -67.3 14.9 -19.2 -9.2 (Decrease)/increase of Payable Accounts (except Banks) 43.7 -10.2 -23.9 11.2 Income tax paid -35.5 -29.0 -28.2 -26.2 Net Cash from Operating Activities 139.1 153.0 113.8 168.1
(Purchases)/Sales of subsidiaries, associates, joint ventures and other investments -22.9 7.5 -5.3 4.5 Purchases of tangible and intangible assets -58.2 -67.3 -70.8 -65.4 Proceeds from sales of tangible and intangible assets 0.4 0.3 2.1 2.6 Interest received 8.6 13.6 12.3 7.7 Dividends received 2.6 1.0 1.9 1.0 Net Cash from Investing Activities -69.5 -44.9 -59.8 -49.6
Subsidiary's capital return 0.0 0.0 0.0 -3.3 Purchase of treasury shares 0.0 -0.4 0.0 -1.2 Cash inflows from loans 492.4 521.2 61.4 303.8 Repayment of loans -472.3 -255.5 -58.8 -388.4 Bond buy backs – -6.3 -40.9 -3.7 Repayment of leasing obligations -6.9 -12.2 -11.5 -6.8 Interest and similar expenses paid -37.8 -66.1 -64.8 -83.5 Dividends paid -16.6 -23.7 -67.7 -42.2 Net Cash from Financing Activities -41.2 157.0 -182.3 -225.3
Net increase/(decrease) in cash and cash equivalents for the period 28.4 265.1 -128.3 -106.8
June 2017 | Page 37 . A GLOBAL LEADER . YOUR LOCAL PARTNER
June 2017 | Page 38