Light & Wonder, Inc. · ASX:LNW
Light & Wonder — Scientific Games — Merger or Acquisition (August 2014)
16 slides from Light & Wonder's merger presentation, Aug 1, 2014
Slide 1: Scientific Games Corporation Acquisition of Bally Technologies
Scientific Games Corporation Acquisition of Bally Technologies August 1, 2014
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
Forward-Looking Statements; Non-GAAP Financial Measures Forward-Looking Statements: Throughout this presentation, Scientific Games makes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations
Slide 3: Forward-Looking Statements; Non-GAAP Financial Measures (Cont'd)
Forward-Looking Statements; Non-GAAP Financial Measures (Cont’d) Non-GAAP Financial Measures: This presentation includes certain financial measures that were not prepared in accordance with generally accepted accounting principles in the United States (GAAP). As used herein, Combined Revenue, Combin
Slide 4: Transformative Transaction Creates A Premier Gaming and Lottery Company
Transformative Transaction Creates A Premier Gaming and Lottery Company Diverse portfolio of products and services with broad global distribution and stable and recurring revenue streams Enables one-stop-shopping for our gaming and lottery customers Best in class product development teams, player re
Slide 5: Transformative Transaction Creates A Premier Gaming and Lottery Company (cont'd.)
Transformative Transaction Creates A Premier Gaming and Lottery Company (cont’d.) Common licensure in over 300 gaming jurisdictions expected to facilitate quick closing by early 2015 Cross-distribution of WMS, Bally, Scientific Games and SHFL content across multiple land-based and online platforms e
Slide 6: Combining Complementary Products, Services and Operations
Combining Complementary Products, Services and Operations Instant Lottery Products Design and printing of scratch-off instant lottery tickets and merchandising/marketing support and licensing/loyalty programs Lottery Systems Draw game based lottery systems, online keno and sports betting systems, an
Slide 7: Transaction Overview
Total transaction value of $5.1 billion, including net debt $83.30 in cash per Bally share 10.2x LTM 3/31/14 EBITDA, excluding anticipated synergies; 6.8x LTM 3/31/14 EBITDA, including $220 million of anticipated cost synergies and other adjustments (1) Fully committed debt financing in place Transa
Slide 8: Revenue Diversity = Visibility and Opportunity
Revenue Diversity = Visibility and Opportunity Note: U.S. Dollars in millions Pro Forma for WMS acquisition Pro Forma for SHFL and Dragonplay acquisitions Revenue: $1,649 Revenue: $1,363 Combined Revenue: $3,012 Scientific Games (1) Bally (2) Combined Lottery Systems 16% Gaming Services 24% Instant
Slide 9: Strategic and Operational Benefits
Strategic and Operational Benefits Combine innovation focus of R&D teams to drive value-added, customer-centric solutions and accelerate speed to market State-of-art operating system development and game tools utilization to improve development process and enhance game production efficiencies Furthe
Slide 10: Pro Forma Combined SGMS + BYI Revenue EBITDA
Pro Forma Combined SGMS + BYI Revenue EBITDA Note: U.S. Dollars in millions Pro Forma for WMS acquisition Pro Forma for SHFL and Dragonplay acquisitions. Includes $220 million of anticipated cost saving synergies plus other adjustments, which include the effect of anticipated accounting reclassifica
Slide 11: Anticipated Synergies
Anticipated Synergies COST SYNERGIES OF ~$220 MILLION EXPECTED BY END OF SECOND YEAR FOLLOWING CLOSING; ~80% ACHIEVED BY END OF FIRST YEAR Economies of scale and supply chain efficiencies Eliminate duplicate development processes Eliminate duplicative public company and regulatory expenses Consolida
Slide 12: Financing and Pro Forma Capitalization
Revenue Diversity = Visibility and Opportunity Combination of new term loan / secured notes Includes $220m of anticipated cost saving synergies plus other adjustments, which include the effect of anticipated accounting reclassifications to conform to Scientific Games’ accounting policies (i.e., recl
Slide 13: Transaction Highlights
Combines cultures of innovation in product development, renowned portfolios of proprietary and third-party brands and extensive systems technologies Transaction Highlights + Creates single source provider of gaming and lottery products, services and systems Expected to generate near and long-term va
Slide 14: Scientific Games Corporation and Bally Technologies, Inc.
Scientific Games Corporation and Bally Technologies, Inc. LEVERAGING INNOVATION, PEOPLE AND TECHNOLOGIES TO CREATE SOME OF THE WORLD’S MOST COMPELLING EXPERIENCES 15
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP Reconciliation SGMS Attributable EBITDA
Non-GAAP Reconciliation SGMS Attributable EBITDA LTM ended 31-Mar ($ in millions) 2014 Net loss from continuing operation (84.2) $ Add: Depreciation and amortization 366.2 Add: Interest Expense 185.0 Add: Income tax (benefit) expense (113.3) EBITDA from continuing operations 353.7 $ Other Credit Agr
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