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OFFON

BALLY'S CORPORATION

(BALY)
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Q3 2021 Investor Presentation (opens in new window)

11/04/2021 | 06:45am EST

Third Quarter 2021 Update November 2021

B A L L Y ' S C O R P

Disclaimer

Forward-Looking Statements

This presentation includes forward-looking statements within the meaning of the securities laws. Forward-looking statements are statements as to matters that are not historical facts, and include statements about Bally's Corporation ("Bally's") plans, objectives, expectations, and intentions. Forward-looking statements are not guarantees and are subject to risks and uncertainties. Forward-looking statements are based on Bally's current expectations and assumptions. Although Bally's believes that its expectations and assumptions are reasonable at this time, they should not be regarded as representations that its expectations will be achieved. Actual results may vary materially. Forward-looking statements speak only as of the date of this presentation and Bally's does not undertake to update or revise them as more information becomes available, except as required by law.

Important factors beyond those that apply to most businesses, some of which are beyond the control of Bally's and Gamesys Group plc ("Gamesys"), that could cause actual results to differ materially from their expectations and assumptions include, without limitation: (1) Bally's ability to meet expectations regarding the accounting and tax treatments of the Gamesys acquisition;

  1. the possibility that Bally's may be unable to achieve any expected synergies and operating efficiencies in connection with the Gamesys acquisition within the expected time-frames or at all and to successfully integrate the Gamesys' operations into those of Bally's; (3) uncertainties surrounding the COVID-19 pandemic, including limitations on Bally's operations, increased costs, changes in customer attitudes, impact on employees and the ongoing impact of COVID-19 on general economic conditions; (4) changes in the capital markets; (5) unexpected costs, difficulties integrating and other events impacting Bally's recently completed and proposed acquisitions and Bally's ability to realize anticipated benefits; (6) risks associated with Bally's rapid growth, including those affecting customer and employee retention, integration and controls; (7) risks associated with the impact of the digitalization of gaming on Bally's casino operations, Bally's expansion into iGaming and sports betting and the highly competitive and rapidly changing aspects of its new interactive businesses generally; (8) the very substantial regulatory restrictions applicable to Bally's, including costs of compliance; (9) restrictions and limitations in agreements to which Bally's is subject, including its debt, which could significantly affect Bally's liquidity and ability to operate; and (10) other risks identified in Part I. Item 1A. "Risk Factors" of Bally's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as filed with the Securities and Exchange Commission on March 10, 2021 and Bally's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2021 as filed with the Securities and Exchange Commission on May 10, 2021. The foregoing list of important factors is not exclusive and does not include matters like changes in general economic conditions that affect substantially all gaming businesses. You should not place undue reliance on Bally's forward-looking statements.

Non-GAAP Financial Measures

To supplement the financial information presented on a U.S. generally accepted accounting principles ("GAAP") basis, Bally's has included in this presentation certain non-GAAP financial measures, including Adjusted EBITDA and Total Further Adjusted EBITDA. The presentation of non-GAAP financial measures in this presentation is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in this presentation. Bally's believes that presenting non-GAAP financial measures aids in making period-to-period comparisons and is a meaningful indication of its actual and estimated operating performance. Because not all companies use identical calculations, the Bally's and combined non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

B A L L Y ' S C O R P

2

Third Quarter 2021 Review

  • Record revenue of $315MM. Continued momentum in North America Interactive with revenue of $11MM (up from $6MM in 2Q21)
  • Retail Casinos EBITDAR of $106.5MM, EBITDAR Margin 35.3%
    • $11.4MM triple net rent in 3Q21
  • Adjusted EBITDA of $78MM
    • Includes $6MM of losses at North America Interactive and $6MM of business interruption from Hurricanes and Nevada wildfires
  • Closed Gamesys acquisition on October 1, 2021
    • Gamesys 3Q21 revenue $279MM, +6% Y/Y on constant currency basis
      • UK +9%, Asia +10%, Europe -25% from geography exits
    • Gamesys Adjusted EBITDA of $84MM. EBITDA Margin 30.1%

B A L L Y ' S C O R P

3

Bally's business model going forward

Three Core Segments. Significant FCF to Invest in North America Interactive, Track record of accretive M&A, High ROIC Property Capex and Share Buybacks

US Retail Casinos

International Interactive

14 casinos in 10 states

Leading iCasino in UK and Asia

Unified around the Bally's brand

Full iGaming tech stacks

500k+ unique monthlies

700k+ unique monthlies

3Q21 annualized EBITDAR(1):

3Q21 annualized EBITDA:

~$415MM less $46 million rent

~$330 million

Corporate Expense: $40 million

Cash Interest Expense: $165 million

Maintenance Capex: $80 million

Pre-Tax Free Cash Flow for Investment: ~$410+ million per year

Shares Outstanding: ~68 million(2)

Free Cash Flow(3) Per Share: ~$5

North America Interactive

  • Online sports betting market access in 16 states
  • Launching Bally Casino iCasino in New Jersey in 2021
  • Significant media partnerships and content driving awareness of Bally's brand

Other Investment Opportunities

  • Track record of accretive M&A
  • High ROIC Property Capex
  • Share Buybacks

(1)

3Q21 Adjusted Retail Casinos Property EBITDAR of $106.5 million less $3.0 million for Bally's Atlantic City.

BALLY'S CORP

4

  1. Includes common shares outstanding and full dilution for warrants, options and other contingent consideration that may result in the issuance of common shares in future periods.
  2. After-taxcalculations should assume $250 million of deductible D&A and 25% tax rate.

North America Interactive

We are in the early days of the development of the

North America interactive gaming market

Drive awareness of the Bally brand at a local level using proprietary assets and partnerships building structural cost advantages relative to the competition

Launch iCasino and Online Sports Betting products that are loved by our customers

Work hand in glove with our Retail teams to leverage our footprint and deliver an omni- channel experience that is both relevant and value-adding to the customer

Developing content and consumer programming that creates unique opportunities for customer engagement with the Bally brand on a daily basis

Gamesys growth in the UK outperformed peers and we see similarities of the opportunity set in North

America to that Gamesys experienced in the UK market

UK iGaming - FY16-FY21 CAGR

15.6%

14.8%

14.5%

11.5%

11.1%

10.7%

7.8%

6.5%

1.0%

5

Gamesys

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Competitor 6

Competitor 7

Competitor 8

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Bally's Corporation published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 11:44:08 UTC.


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Number of Analysts 8
Last Close Price 27,11 $
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Managers and Directors
Lee Fenton Chief Executive Officer & Director
Stephen H. Capp Chief Financial Officer & Executive Vice President
Soohyung Kim Chairman
Rob Weir Chief Information Officer
Marc A. Crisafulli Executive Vice President-Strategy & Operations
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