Bowlero : Q3 FY 2024 Results Presentation

Forward-looking statements

Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risk, assumptions and uncertainties, such as statements of our plans, objectives, expectations, intentions and forecasts. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "confident," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this release and are based on our management's current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to: our ability to design and execute our business strategy; changes in consumer preferences and buying patterns; our ability to compete in our markets; the occurrence of unfavorable publicity; risks associated with long-termnon-cancellable leases for our centers; our ability to retain key managers; risks associated with our substantial indebtedness and limitations on future sources of liquidity; our ability to carry out our expansion plans; our ability to successfully defend litigation brought against us; our ability to adequately obtain, maintain, protect and enforce our intellectual property and proprietary rights and claims of intellectual property and proprietary right infringement, misappropriation or other violation by competitors and third parties; failure to hire and retain qualified employees and personnel; the cost and availability of commodities and other products we need to operate our business; cybersecurity breaches, cyber-attacks and other interruptions to our and our third-party service providers' technological and physical infrastructures; catastrophic events, including war, terrorism and other conflicts; public health emergencies and pandemics, such as the COVID-19 pandemic, or natural catastrophes and accidents; changes in the regulatory atmosphere and related private sector initiatives; fluctuations in our operating results; economic conditions, including the impact of increasing interest rates, inflation and recession; and other factors described under the section titled "Risk Factors" in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") by the Company on September 11, 2023, as well as other filings that the Company will make, or has made, with the SEC, such as Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in other filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

To provide investors with information in addition to our results as determined under Generally Accepted Accounting Principles ("GAAP"), we disclose Revenue Excluding Service Fee Revenue, Total Bowling Center Revenue, Same Store Revenue and Adjusted EBITDA as "non- GAAP measures", which management believes provide useful information to investors because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income, or any other operating performance or liquidity measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Our third quarter and fiscal year 2024 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Such items include, but are not limited to, acquisition related expenses, stock-based compensation and other items not reflective of the company's ongoing operations.

Revenue Excluding Service Fee Revenue represents Total Revenue less Service Fee Revenue. Total Bowling Center Revenue represents Total Revenue less Non-Center Related Revenue, Revenue from Closed Centers (as defined below), and Service Fee Revenue, if applicable. Same Store Revenue represents Total Revenue less Non-Center Related Revenue, Revenue from Closed Centers, Service Fee Revenue, if applicable, and Acquired Revenue. Adjusted EBITDA represents Net Income (Loss) before Interest Expense, Income Taxes, Depreciation and Amortization, Share-based Compensation, EBITDA from Closed Centers, Foreign Currency Exchange Loss (Gain), Asset Disposition Loss (Gain), Transactional and other advisory costs, changes in the value of earnouts, and other.

The Company considers Revenue Excluding Service Fee Revenue as an important financial measure because provides a financial measure of revenue directly associated with consumer discretionary spending and Total Bowling Center Revenue as an important financial measure because it provides a financial measure of revenue directly associated with bowling center operations. The Company also considers Same Store Revenue as an important financial measure because it provides comparable revenue for centers open for the entire duration of both the current and comparable measurement periods.

The Company considers Adjusted EBITDA as an important financial measure because it provides a financial measure of the quality of the Company's earnings. Other companies may calculate Adjusted EBITDA differently than we do, which might limit its usefulness as a comparative measure. Adjusted EBITDA is used by management in addition to and in conjunction with the results presented in accordance with GAAP. We have presented Adjusted EBITDA solely as a supplemental disclosure because we believe it allows for a more complete analysis of results of operations and assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA:

• do not reflect every expenditure, future requirements for capital expenditures or contractual commitments;
• do not reflect changes in our working capital needs;
• do not reflect the interest expense, or the amounts necessary to service interest or principal payments, on our outstanding debt;
• do not reflect income tax (benefit) expense, and because the payment of taxes is part of our operations, tax expense is a necessary element of our costs and ability to operate;
• do not reflect non-cash equity compensation, which will remain a key element of our overall equity based compensation package; and
• do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations.

352 operating locations as of May 6, 2024

Well positioned in highly attractive markets across North America

Robust acquisition pipeline

supports unit growth

Three core brands

	Bowlero	Lucky Strike	AMF/Other

Acquisitions + New Builds provide avenue for continued location growth over the long-term

		Opportunity to roll up
		~500-1,000locations +
		~200 new build
		opportunities
FY22	FY23	May 6, 2024	Future Potential

2018-2023 Location Additions

1

Acquisitions

41

$299M ~$60M

4.9x

Chain	28	$134M ~$40M	3.4x
Acquisitions

New Builds	11	$80M ~$37M	2.2x

Bowlero	Lucky Strike	AMF/Other

Note: $ in millions

1. Excludes sale-leaseback proceeds.
2. Illustrative. Annualized EBITDA for acquisitions completed in FY23.

31%	31%
		19%	19%
	Theme Parks	FECs	Live
	Entertainment
	LTM 3Q24 EBITDA margin

		Maintenance
		capex is 3%-4%
86%		of revenue

67%	64%
46%
includes		25%
growth
capex
Theme Parks	FECs	Live
Entertainment

LTM 3Q24 (EBITDA -

total capital expenditures) / Adj. EBITDA

Note: Bars in chart represent average of peer set as of LTM period or closest aligned CY LTM period. Peer metrics based on publicly available information. Source: Company filings. Free Cash Flow conversion excluding growth capex. Theme Parks includes FUN, SEAS, and SIX. FECs includes MODG and PLAY. Live Entertainment includes LYV and VAIL

Purchase independent locations with land ownership

Sale-leaseback of that land at reasonable cap rates that imply 12-15x EBITDA

Overlay QMS and

Bowlero Optimization:

Day 1-90 EBITDAR Margin Lift

Acquire Location with Land at 4-7x EBITDAR

Bowlero Self

Funding Model

Sale-Leaseback 50% of

EBITDAR at 12-15x Multiple

	Location Acquired - Oct23(1)
	Purchase Price	$7.2
	Pro Forma EBITDAR	$1.5
	Multiple Paid	4.8x
	Potential SLB Proceeds	$10.3
	Operating Asset Value (10x EBITDA)	$7.5
	Pro Forma Value	$17.8
	Investment Return	2.5x

(1) Illustrative example for most recent acquisition.

($ in millions)
	$2.8	$3.2
$2.3
FY19	FY22	FY23
Average Unit Volumes have reset to a new base driven by
higher Average Revenue Per Customer

	Ordering Kiosk
Contribution Margin	Contribution Margin	Contribution Margin

Powerful and reinforcing growth flywheel

Significant value creation	Ownership of PBA creates strong
opportunity through acquisitions and
brand equity and prestige amongst
go-forward optionality
bowlers, which maximizes standalone
	profitability and drives traffic and
	spend. Potential media partnerships

One of the world's

premier operators of

location base entertainment

Proprietary Quantitative Management	Pioneering in-location gaming, apps
System drives continuous operational
and new technology to bring gaming
improvement, acts as an acquisition
into and beyond the entertainment
screening and integration tool
location