Light & Wonder (LNW) Investor presentation summary

Business and strategy overview

• Operates as a leading global cross-platform games company with a presence on six continents and ~6,500 employees, reporting $2.9B in FY 2023 revenue, up 16% YoY.

• Focuses on land-based gaming, social gaming, and iGaming, with robust R&D driving leading positions across all segments.

• Maintains a healthy balance sheet with a 3.0x leverage ratio and a new $1B share buyback program authorized in June 2024.

• Achieved record digital revenue and strong free cash flow conversion, with disciplined capital allocation toward debt reduction, shareholder returns, and growth investments.

• Outpaced industry growth, delivering 13% revenue and AEBITDA growth YoY for the six months ended March 2024, with eight consecutive quarters of YoY revenue growth.

Financial performance and targets

• Consolidated revenue reached $3.08B LTM (3Q23-2Q24), with consolidated AEBITDA at $1.2B and a margin of 39%.

• 1H24 revenue grew 13% YoY to $1.575B, and AEBITDA rose 15% YoY to $610M, with NPATA up 31% YoY.

• Targeting $1.4B consolidated AEBITDA by 2025, implying an 11% CAGR from current levels.

• Reduced annualized interest costs by ~$19M through debt repricing in 2024.

• Free cash flow for the LTM was $355M, with a 30% conversion rate.

Segment highlights

• Gaming: Global market leader with strong R&D, high-performing cabinets, and expanding presence in North America, ANZ, Asia, and LATAM.

• SciPlay: Social casino business with 21% CAGR since 2015, record ARPDAU and market share, and 12% DTC revenue in 2Q24.

• iGaming: #1 slots provider in the US, 6% YoY revenue growth, 570+ operator brands, and $22B in wagers processed through its platform.