International Game Technology

Recast Historical Financial Information and Operating Metrics under New Organizational Structure

November 11, 2020

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Cautionary Statement Regarding Forward-Looking Statements

This presentation may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall", "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2019 and other documents filed from time to time with the SEC, which are available on the SEC's website at www.sec.govand on the investor relations section of the Company's website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company's business. Nothing in this presentation is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance of International Game Technology PLC, as applicable. All forward-looking statements contained in this presentation are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

Comparability of Results: All figures presented in this presentation are prepared under U.S. GAAP, unless noted otherwise.

Non-GAAPFinancial Measures: Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Consolidated Adjusted EBITDArepresents net income (loss) (a GAAP measure) before income taxes, interest expense, foreign exchange gain (loss), other non-operating expenses, depreciation, impairment losses, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of on-going operational activities. For the business segments, Adjusted EBITDArepresents segment operating income (loss) before depreciation, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Other non-recurring items are discrete, infrequent in nature and are not reflective of on-going operational activities. Management believes that the non-GAAP measures just mentioned are useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance. A reconciliation of the Adjusted EBITDA measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Constant currency changes for 2020 are calculated using the same foreign exchange rates as the corresponding 2019 period. Additional non-GAAP financial measures used by IGT that are not referenced in this presentation, including net debt and free cash flow, remain unchanged. Reconciliations of these additional non-GAAP measures can be found in IGT's Second Quarter 2020 Results, which is included in the Investor Relations section of IGT's website at www.IGT.com.

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Recast Financial Information and KPIs in Accordance with New Org Structure

  • As previously announced, effective July 1, 2020, IGT adopted a new organizational structure focused on two operating segments, Global Lottery and Global Gaming, along with a streamlined corporate support function
  • Recast historical financial information and key performance indicators (KPIs) are being provided in accordance with the new structure
    • FY'19 results are used to illustrate changes in methodology on the following slides
    • Recast historical financial information and KPIs are included later in this presentation
  • There are no changes to previously reported consolidated financial results
  • IGT will begin reporting its financial results under the new structure starting with the third quarter of 2020

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Streamlined Business with Two Operating Segments

  • Enables greater responsiveness to customers and players

Global Lottery

  • Increases effectiveness and competitiveness in each segment

Led by Fabio Cairoli

• Harmonizes best practices in each product category

• Increases organizational efficiency by leveraging economies of scale

Global

• Improves market understanding of segment performance

Gaming

• Reduces complexity to support IGT's intrinsic value

Led by Renato Ascoli

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IGT - International Game Technology plc published this content on 11 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 21:42:01 UTC