1. June 2018
Social Casino
Table Games
Premium EGMs
Orion
Core EGMs
ICON
Specialty EGMs
Big Red
Table Equipment
INVESTOR OVERVIEW
2. 1
This presentation contains and related discussions may contain “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking
statements include information concerning possible or assumed future results of operations of PlayAGS, Inc.’s (the “Company”), the Company’s business plans and
strategies, the Company’s ability to sell the Company’s products, and expand into new markets, including into overseas markets such as Brazil and the Philippines. You
can identify forward-looking statements by the use of words such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,”
“estimate,” “project,” “predict,” “intend,” “future,” “potential,” “suggest,” “target,” “forecast,” “continue,” and other similar expressions. Forward-looking statements
are not historical facts, and are based upon management’s current expectations, beliefs, estimates and projections, and various assumptions, many of which are
inherently uncertain and beyond the Company’s control. Such expectations, beliefs, estimates and projections are expressed in good faith and management believes
there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, estimates and projections will be achieved and
actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and
uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements, including: changing economic
conditions, changing regulations, new interpretations of existing laws, and difficulties and delays in obtaining or maintaining required gaming licenses or approvals; the
Company’s ability to develop, enhance and/or introduce successful gaming concepts and game content; the Company’s ability to retain customers for a long period of
time; the Company’s ability to comply with evolving laws and regulation and standards relating to privacy and data security; the Company’s ability to operate within
the restrictions set by, and services the obligations under, its substantial indebtedness; changing economic conditions and other factors that adversely affect the casino
and gaming industry, the play levels of the Company’s participation games, product sales and the Company’s ability to collect outstanding receivables from our
customers; changes in the legal and regulatory scheme governing Native American gaming markets, including the ability to enforce contractual rights on Native
American land; the Company’s ability to enter new markets, such as Brazil and the Philippines, and potential new markets; the Company’s ability of to achieve
revenues and margins in new markets, such as Brazil and the Philippines, that are consistent with the Company’s historical revenues and margins; and other risks,
uncertainties and factors detailed in the registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (the “SEC”) by the Company on
May 7, 2018. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking
statements to reflect actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by
applicable securities laws.
This presentation also contains references to earnings before interest, taxes, depreciation and amortization on an adjusted basis (“Total Adjusted EBITDA”) and other
measures that are not based on accounting principles generally accepted in the United States, or non-GAAP financial measures. These non-GAAP financial measures
are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures used by
the Company may differ from the non-GAAP financial measures used by other companies. Refer to the Appendix of this presentation for definitions of these terms and
reconciliations to the most comparable GAAP measures.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
3. 2
INVESTMENT HIGHLIGHTS
Attractive
Business Model
w/ High-
Performing
Products
Favorable
Market
Backdrop
▪ Consistent historical growth: U.S. gaming revenue has grown ~2% annually since 2014
▪ Strong future growth prospects: U.S. tax reform, U.S. unemployment at 18-year low, continued expansion of
the experience economy
▪ Potential acceleration of replacement cycle
• AGS not dependent on the replacement cycle, but acceleration could enhance Class III growth
▪ Leases drive 78% recurring revenue, which provides high revenue visibility
• Sales provide a tremendous opportunity to expand and diversify product and customer mix
▪ AGS generates industry-leading EGM Adjusted EBITDA margins, which fund high-ROI growth opportunities
▪ Strong recurring cash flow with 8-12 month payback periods on new leased EGMs
▪ Market-leading and high-performing products
• Casino-owned and premium leased EGMs generated win per day of ~1.74x and ~2.39x, respectively
Multiple Levers
for Growth
▪ Industry-leading game performance drives continued market share growth
▪ Recent ship share gains far in excess of current market share: ~6% Q1 U.S. ship share vs ~2% market share
▪ Material whitespace opportunity due to substantial increases in TAM: Grew TAM 100% and new licenses
105% since 2012
▪ Meaningful international expansion opportunities in Philippines, Canada and Brazil
Source: Eilers & Krejcik, The AGA Survey of the Casino Industry (2018)
U.S. Department of Commerce, Bureau of Economic Analysis
4. 3
EGM Installed Units 8,735 24,033 175%
EGM Sold Units 255 2,950 1,057%
Domestic RPD $21 $26 21%
Gaming Licenses 161 260 61%
Revenue ($ in mm) $72 $229 217%
Years
Experience
Years at
AGS
KPIs 2014 3/31/18 Δ
David Lopez
Kimo Akiona
Sigmund Lee
Matt Reback
Julia Boguslawski
John Hemberger
Andrew Burke
PERFORMANCE DRIVEN BY A CULTURE OF INNOVATION
Title
▪ +600 employees around the globe
▪ R&D employees represent ~30% of total AGS employees
▪ Unique culture sets us apart from other companies
▪ Our employee-centric culture will continue to attract high-caliber talent
AGS Drives Innovation Through its Unique Culture
Note: EGM sold units, domestic RPD and revenue as of respective LTM periods; 2014 figures are as reported and are not pro forma to include the acquisitions of
Cadillac Jack or RocketPlay
5. 4
Table Products: $5mm
+97% Y-o-Y
AGS COMPANY OVERVIEW
CORPORATE EVOLUTION
SEGMENT BREAKDOWN
$229mm LTM Revenue
+31% Y-o-Y
51% LTM Adj. EBITDA margin
$116mm LTM Adj. EBITDA
+31% Y-o-Y LTM
3/31/18
Revenue
78%
FINANCIAL SNAPSHOT SIGNIFICANT WHITESPACE
OPPORTUNITY
RECURRING REVENUE
EGM: $216mm
+32% Y-o-Y
Interactive: $8mm
-5% Y-o-Y
No Gaming
CanadaMexico Philippines Brazil
RampingEstablished Early Entry Prospective
Note: All figures as of LTM 3/31/18. Y-o-Y growth is from 3/31/17 to 3/31/18
(1) Denotes AGS acquired by funds managed by Apollo, not Apollo Global Management itself
LTM 3/31/18
(1)
6. 5
CONTINUED PROGRESS SINCE IPO
At IPO (9/30/17) Now (3/31/18)
LTM EBITDA
LTM Revenue
Installed Base
LTM Units Sold
Gaming Licenses
Domestic Leased
+ Sold Units
% Change
$229mm$197mm 16%
$116mm$102mm 14%
24,03322,015 9%
2,9502,128 39%
260253 3%
22,12318,662 19%
Since IPO, AGS Has Continued to Outperform Across Key Financial Metrics and KPIs
7. 6
EGMs
▪ 30+ unique offerings
▪ New single-deck card
shuffler
▪ Leverages land-based
EGMs
▪ Newly launched B2B
business
▪ Potential upside from
real money gaming
Interactive
New Table Equipment
Expanding Interactive
Channels
Table Products
DIVERSE PORTFOLIO PROVIDING COMPLETE SUITE OF PRODUCTS
Cabinets Titles
▪ New Orion family
significantly expands
premium offerings
▪ Demand continues for
ICON cabinet
Unique Cabinet Designs
Drive Performance
▪ 50+ titles set to
launch
▪ Some of the highest
performing games in
the industry
Content Drives
Performance
Ability to Cross-Sell Between Product Categories Provides for Meaningful Synergies
8. 7
8,708 8,735
13,139 13,953 16,078 16,553
6,112
6,898
7,727 7,480
2013 2014 2015 2016 2017 3/31/2018
Domestic International
123 255 203 465
2,565
2,950
2013 2014 2015 2016 2017 LTM 3/31/18
EGM SEGMENT
STRONG RECURRING REVENUE BASE WITH INDUSTRY-LEADING MARGINS
Class II
12,254
Intl
7,480
Class III
3,082
VLT
1,217
EGM Installed Base
24,033
leased
EGMs
EGM Revenue and Adj. EBITDA
($ in mm)
51%
Huge Growth in Sold EGMs
Achieved ~6% ship
share in most recent
quarter vs. <1% two
years ago
~50% gross profit margin(2)
31%
13%
5%
Brazil &
Philippines
upside
Steady Ramp in Number of Leased EGMs
~100% recurring business; ~80% gross profit margin(1)
+18%
+26%
+4%
Y-o-Y Growth
▪ High
recurring
revenue
▪ Strong
relationships
▪ Stable
business
5%
Note: All financial figures include contribution of Cadillac Jack following acquisition in May 2015
(1) Gross Profit Margin for leased units = EGM gaming operations revenue less EGM cost of gaming operations, divided by EGM gaming ops. rev. for LTM 3/31/18
(2) Gross Profit Margin for sold units defined as EGM equipment sales revenue less Cost of equipment sales, divided by EGM equipment sales revenue for LTM 3/31/18
$58 $72
$120
$156
$200 $216
$34 $41
$66
$92 $108 $117
2013 2014 2015 2016 2017 LTM
3/31/18
EGM Revenue EGM Adjusted EBITDA
9. 8
Premium Leased Domestic Game Performance(1)Casino-Owned Domestic Game Performance(1)
2.9x
2.4x
1.8x 1.8x
1.7x
1.5x
1.4x
1.3x
Performanceoverhouseaverage
1.7x
1.3x 1.2x
1.1x 1.0x
1.0x 1.0x 0.9x
0.9x 0.8x
Performanceoverhouseaverage
▪ Over 98% of customer trial units resulted in conversion to a lease or sale
▪ AGS casino-owned EGMs generated win per day that is 1.74x the house average(1)
▪ AGS premium leased games generate win per day that is 2.39x the house average(1)
▪ Two large R&D studios in premier locations that continually produce top-performing game titles
EGM SEGMENT
AGS HAS BEST-IN-CLASS GAME PERFORMANCE
(1) Q1 EILERS-FANTINI Quarterly Slot Survey
10. 9
815
1,500
2,400
2,631
2015 2016 2017 3/31/18
Since Inception, AGS has Grown Through Numerous Acquisitions and Through Dedicated, In-House R&D
Table Products Installed Base
Formation of table
products division
August 2017
Acquisition of key table game
assets from In Bet Gaming
Acquisition of table
game titles and licenses
September / October 2014
Acquisition of Buster
Blackjack and key IP
related to Dex card
shuffler
September 2015
TABLE PRODUCTS SEGMENT
SIGNIFICANT UPSIDE IN A HIGH-DEMAND SPACE
July 2014
▪ Over 30 different products, including premium table games
(poker and blackjack derivatives), side bets, progressive
systems, card shufflers and table signage
▪ Nearly 100% recurring revenue
▪ Table games and progressive bonusing are highly social and
interactive, attracting younger players
▪ Over quadrupled installed base since Buster Blackjack
acquisition in September 2015
▪ Recently became EBITDA positive
~70% Side Bets
~25% Progressives
~5% Premium
11. 10
Current Live Apps
INTERACTIVE SEGMENT
INDUSTRY-LEADING CONTENT DRIVES B2B & B2C CUSTOMER ENGAGEMENT
B2C
(Launched 2015)
▪ Full suite of top-performing AGS games
▪ Accessible to players worldwide on multiple mobile platforms
▪ Establishes brand recognition and cross-selling opportunities
▪ Large opportunity to distribute AGS content into legal real-money gaming markets
B2B
(Launched 2017)
▪ Casino-branded, turnkey social gaming products
▪ Core app is Lucky Play, with ~27,000 DAU
▪ Supports casinos’ player-engagement initiatives, with powerful brand
extension, communications, promotions, and monetization features
▪ Signed seven new agreements
Interactive Solutions Target Both Consumers and Operators
▪ Recently became EBITDA positive
12. 11
2012
AGS Licenses
AGS Total Addressable Market(2)
AGS Domestic Leased Units
AGS Domestic Leased + Sold Units
161
~650,000
8,735
9,403
127
~400,000
7,720
7,755
SUSTAINABLE GROWTH THROUGH MARKET EXPANSION AND
PRODUCT PERFORMANCE
AGS Market Share(1)
Total Domestic Market
AGS’s Total Addressable Market has Doubled and is Growing Faster than the Industry
105%
100%
114%
185%
3/31/18
260
~800,000
16,553
22,123
Growth
(2012 – 3/31/18)
2014
(1) AGS installed base as a % of total domestic EGM market, which was ~960,000, ~970,000 and ~980,000 as of 2012, 2014 and 3/31/18, respectively
(2) Total addressable markets in which AGS is licensed to place EGMs in U.S. & Canada
13. 12
69%
11%
11%
9%
AGS HAS SIGNIFICANTLY EXPANDED ITS FOOTPRINT, BUT STILL HAS
MANY NEW GAMING JURISDICTIONS WHERE IT IS NOT YET LICENSED
CA
72,850
NV
161,484
UT
AZ
16,832
TX
4.107
OR
19,129
WA
31.916
ID
3,739
MT
17,684
WY
1.723
CO
14,115
NM
20.545
OK
74.787
KS
8.316
NE
674
SD
15.064
ND
4.330
MN
22.002
WI
16,759
MI
31,486
IA
19.248
IL
38.214
MO
16.899
AR
2,849
LA
41.837
FL
21,160
GAAL
6,527
MS
30.347
SC
NC
4.667TN
KY
1.821
IN
18.924
OH
18.733
WV
13.265 VA
MD
11.531
NJ
14.052
PA
25,849
NY
35.132
ME
1.736
VT
NH MA
1.365
CT
8,977
RI
5,284
DE
6,708
MB
10,099
RampingEstablished Early Entry Prospective No Casino Gaming
AK
93
% of total
units
BC
13,909
NB
2,711
NL
1,896
SK
7,172
AB
20,495
ON
22,834
QC
17,400
NS
2,895
PE
520
14. 13
▪ Solid recurring revenue base and
market leadership in core markets of
TX, AL and OK
▪ AGS has aggressively secured licenses
in, and begun to penetrate, key
Class III markets (e.g., NV, Canada, MS)
▪ Substantial opportunity to further
penetrate Early Entry markets and
enter new markets
▪ Recent ship share gains far in excess of
current market share
▪ AGS is not dependent on the
replacement cycle to grow
▪ 1% market share when excluding
established markets
Market
Stage
Jurisdiction
Estimated Total
Units in State(1)
AGS Estimated
Current Market
Share
Established /
Class II
Texas 4,107 41.6%
Alabama 6,527 42.3%
Oklahoma 74,810 9.5%
Ramping
Florida 21,155 9.3%
Montana 17,741 3.3%
California 72,960 1.9%
Early Entry
Indiana 20,399 1.7%
Mississippi 29,788 0.9%
New York 37,000 0.8%
New Mexico 20,618 0.7%
Michigan 31,486 0.6%
Iowa 19,151 0.6%
Nevada 161,135 0.5%
Louisiana 41,821 0.5%
Ontario 22,954 0.2%
Alberta 20,577 0.0%
Ohio 18,593 0.0%
Quebec 17,275 0.0%
Other(2) 243,258 1.7%
Prospective Other(3) 104,983 0.0%
Total 986,338 2.2%
AGS IS TAKING MARKET SHARE IN CURRENTLY LICENSED
STATES, WITH LARGE Q1 SHIP SHARE IN EARLY-ENTRY MARKETS
20%
6%
7%
4%
AGS Q1 ship share
demonstrates path
to further market
share growth
(1) Per Eilers & Krejcik
(2) Other Early Entry jurisdictions include AZ, CT, DE, ID, IL, KS, MD, MN, ND, NE, NJ, NC, OR, SD, WA, WI, WY and the Canadian provinces of Manitoba and
Saskatchewan
(3) AGS is not currently licensed in U.S. states of AK, AR, CO, KY, ME, MA, MO, PA, RI, WV and Canadian provinces of British Columbia, New Brunswick,
Newfoundland & Labrador, Nova Scotia, and Prince Edward Island
15. 14
North American Expected FORWARD 12-Month Replacement Ship Share(2)
EMERGING SUPPLIERS WINNING SHIP SHARE FROM BIG-4
Non-Big-4 Ship Share Increasing as Customers Prefer More Diversification Given Industry Consolidation(1)
3%
5%
6% 7% 7%
11%
15%
16%
24% 23%
0%
10%
20%
12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 3/18
Industry consolidation triggered shift
towards Non-Big-4 suppliers
(1) Q1 EILERS-FANTINI Quarterly Slot Suvery
(2) Q1 EILERS-FANTINI Quarterly Slot Suvery; expected forward replacement ship share excludes route ops
25% 24%
17%
10%
6% 5% 4% 4% 3%
<1% 0% <1%
Other
Big-4 Non-Big-4
Operators expect to
allocate ~6% of their
2018 purchases to AGS
16. 15
INTERNATIONAL EXPANSION STRATEGY
Philippines
▪ ALORA units shipped to the Philippines will begin operating in 2018
▪ Target 3,000-5,000 unit leased footprint over 3-5 year period, representing
~4-7% of market
▪ ~70,000 unit market size
▪ AGS touched ground in Q1…
Other
International
Opportunities
Brazil
▪ When legislation is approved, AGS is poised to capitalize on what is
considered one of the most significant expansions in gaming
▪ Potential to be a 500,000 gaming machine market
▪ MOUs in place for ~8,700 leased units representing ~1.7% of market
Canada
▪ Canada is a large untapped market
▪ Official launch into three jurisdictions planned for 2018 (currently in Ontario)
▪ First installations of ICON cabinets have been successful
▪ OLG privatization has brought a positive change in the market
ImmediateUpside
Pending
Legislation
▪ Latin America, Asia, Australia and Europe all represent future opportunities
for growth
FurtherUpside
17. 16
MULTIPLE LEVERS AVAILABLE TO DRIVE FURTHER GROWTH
AGS Today EGMs Table Products Interactive Philippines AGS planned
near-term
Brazil M&A AGS further
upside
Entering in
2018
~70,000 unit
market size
Target 3,000
– 5,000 unit
footprint
over 3-5
years
Gaming
legalization
could support
a 500,000+
video bingo
market
MOUs in
place with 9
operators for
~8,700 EGMs
Opportunities
in B2B and
real money
gaming
Continuing
strong track
record of
accretive
EGM rollups
Additional
opportunities
in various
table games
offerings
Penetrate new
markets
Take share
based on
strong game
performance
Significant
yield
optimization
opportunity
New
progressive
technology
and premium
titles will
further boost
offerings
In Bet Gaming
assets will
also drive
growth
Ramp up of
B2B social
business and
social RGS
Future
opportunity
through real
money
gaming
18. 17
$72
$123
$167
$212
$229
$48 $65
2014 2015 2016 2017 LTM
3/31/18
YTD Q1 '17 YTD Q1 '18
▪ 78% of the $229 (1) million total revenue is recurring
• ~80% gross profit margin for leased units(2) and ~50% gross profit margin for sold units(3)
▪ 51% LTM Total Adjusted EBITDA Margin
▪ Payback period of only ~8-12 months on capital spent for new leased machines
Strong Revenue Growth with Robust Margins
($ in mm)
AGS’S STRONG FINANCIAL TRACK RECORD OF SUCCESS
Total Adjusted EBITDA(4)Total Revenue(4)
$107
$25 $34$40
$62
$85
$116
56% 51% 51% 50% 51% 52%
53%
2014 2015 2016 2017 LTM
3/31/18
YTD Q1 '17 YTD Q1 '18
Adj. EBITDA margin
LTM
Revenues by Segment 2014 2015 2016 2017 3/31/18
EGM $72.0 $119.6 $156.4 $199.9 $216.2
Table Products 0.1 1.7 2.7 4.1 5.1
Interactive – 2.0 7.7 8.0 7.8
LTM
Adjusted EBITDA by Segment 2014 2015 2016 2017 3/31/18
EGM $40.6 $66.3 $91.7 $107.8 $116.9
Table Products (0.3) (1.4) (1.7) (0.5) (0.2)
Interactive – (2.5) (4.7) (0.4) (0.3)
($ in mm)
(1) Total Revenue as of LTM 3/31/18
(2) Gross Profit Margin for leased units = EGM gaming operations revenue less EGM cost of gaming operations, divided by EGM gaming ops. rev. as of LTM 3/31/18
(3) Gross Profit Margin for sold units = EGM equipment sales revenue less EGM cost of equipment sales, divided by EGM equipment sales revenue as of LTM 3/31/18
(4) As reported figures
19. 18
▪ Total Adj. EBITDA – industry-leading 51%(1) Adj.
EBITDA margins (vs ~32% for peers)
▪ Cash taxes – significant NOLs of over $100
million and high D&A result in no cash taxes
▪ Working capital – change in net working capital
is only ~1% of revenue
▪ Maintenance capex – refurbishment obligations
on existing installed base are low and decreasing
Strong Cash Flow Conversion
Favorable Cash Flow Drivers
FAVORABLE CASH FLOW DYNAMICS PRODUCE HIGH DISCRETIONARY
CASH FLOW AND PERMIT ATTRACTIVE ROI INVESTMENTS
97.3%(1)
▪ Growth capex – builds recurring revenue base by
placing higher yielding leased cabinets with
highly compelling ROIs
• 12 month payback on core units and 8
months on premium units
▪ Intangibles – primarily capitalized R&D that
facilitates cutting edge hardware and content
development
Strong
cash flow
for high-ROI
investments,
growth and
deleveraging
>90% cash flow conversion(2)
▪ Reinvestment in high
ROI growth
▪ Significant potential
for future
deleveraging
(1) Adjusted EBITDA margin as of LTM 3/31/18
(2) Percentages equal (EGM Adjusted EBITDA – maintenance capex) / EGM Adjusted EBITDA
92%
99% 99%
2016 2017 LTM 3/31/18
20. 19
IPO AND CAPITAL STRUCTURE OVERVIEW
(1) As of 6/14/18
▪ AGS priced its IPO on January 25th (NYSE: AGS)
• 10,250,000 shares offered at $16.00 per share (100% primary)
• Day 1 trading performance ( 15.6%), +50% since IPO(1)
• Greenshoe option was exercised on February 27, 2018
▪ Repricing overview:
• On February 6, 2018, AGS repriced its existing $512.6 million term loan due February 2024
• Reprice from L + 550 bps to L + 425 bps, saving over $6 million in annual interest expense
▪ AGS secondary public offering (NYSE: AGS)
• 4,250,000 shares offered at $21.50 per share
Capitalization
($ in mm) 12/31/17 3/31/18 Rate Maturity
Capitalization
Cash $19 $26
$30 million existing revolver – – L + 4.25% 6/6/2022
First lien term loan 513 511 L + 4.25% 2/15/2024
Other 3 2 Various –
Total first lien debt $515 $514
HoldCo PIK notes $153 – 11.25% 5/28/2024
Total debt $668 $514
Total net debt 649 488
21. 20
SUMMARIZING THE AGS OPPORTUNITY
Attractive high-margin, recurring revenue model1
Pure-play casino gaming supplier with outsized growth potential2
Capitalizing on strong Class II position while continuing to penetrate Class III markets3
Growth from international expansion in Philippines, Brazil and other markets4
Strong free cash flow generation allows for reinvestment in business at attractive ROIs5
Industry-leading R&D platform in both hardware and content6
Diversified product suite7
Proven ability to successfully integrate acquisitions and scale the platform8
23. 22
Unless otherwise indicated or the context otherwise requires, the following terms in this presentation have the
meanings set forth below:
▪ Average Monthly Lease Price (ALP): Average monthly lease price is calculated by dividing (a) total revenues recognized
and directly attributable to Table Products by (b) the number of Table Products Installed Base and by (c) the number of
months in such period
▪ Average Revenue per Daily Active User (ARPDAU): ARPDAU is calculated by dividing (a) daily revenue by (b) the number
of Daily Active Users
▪ Average Sales Price (ASP): Average sales price is calculated by dividing (a) total revenues recognized and directly
attributable to EGM unit sales in a period by (b) the number of EGM units sold over that same period
▪ Daily Active Users (DAU): DAU is a count of daily unique visitors to a site
▪ EGM Installed Base: EGM Installed Base is the number of recurring revenue EGM units installed on a specified date
▪ Electronic Gaming Machine (EGM): EGMs include but are not limited to slot machines, Class II machines, video poker and
video lottery machines
▪ House Average (HA): Average casino win from slot machine or table product
▪ Monthly Active Users (MAU): MAU is a count of monthly unique visitors to a site
▪ Revenue Per Day (RPD): RPD is calculated by dividing (a) total revenues over a specified period recognized and directly
attributable to units on lease (whether on a participation or daily fee arrangement) by (b) the number of units installed
over that period and by (c) the number of days in such period
▪ Ship Share: Ship Share is the share of all slots sold in a specified period
▪ Table Products Installed Base: Table Products Installed Base is the number of table products installed on a specified date
▪ TAM: Total addressable markets are markets in which we are currently licensed, or could be licensed with minimal effort,
to place EGMs in the United States and Canada
▪ Win Per Day (WPD): WPD is the total revenue generated by an EGM per day
TERMS USED IN THIS PRESENTATION
24. 23
($ in mm)
MULTIPLE GROWTH DRIVERS HAVE INCREASED EBITDA
$116
$62
$85
$107
$25
$16
$1
$4
$9 $0.4 $0.1
($0)
($2 )
2015 EGMs Table
Products
Interactive 2016 EGMs Table
Products
Interactive 2017 EGMs Table
Products
Interactive LTM
3/31/18
Adj. EBITDA
Total table
products
installed
based
increased
to 2,400
Avg MAU of
192,835
ARPDAU
increased
to $0.57
Installed
base leased
units
increased
to 20,851
Sold 465
EGMs, a
129% y-o-y
increase
R&D
spend
expanded
product
offerings
Increased
table
products
installed
base 84%
to 1,500
R&D
spend
expanded
product
offerings
Avg. MAU
+50%
Avg. DAU
+54%
ARPDAU
+31%
Installed
base
leased
units
increased
to 23,805
Total table
products
installed
based
increased
to 2,631
Focus on
B2B and
optimizing
return
on B2C
marketing
spend
Avg MAU of
200,741
ARPDAU of
$0.55
Installed
base
leased
units
increased
to 24,033
Sold
2,950
units in
the 12ME
26. 25
TOTAL ADJUSTED EBITDA RECONCILIATION
▪ Write downs and other includes items related to
loss on disposal or impairment of long lived assets,
fair value adjustments to contingent consideration
and acquisition costs
▪ Loss on extinguishment and modification of debt
primarily relates to the refinancing of long-term
debt, in which deferred loan costs and discounts
related to old senior secured credit facilities were
written off
▪ Other adjustments are primarily composed of
professional fees incurred for projects, corporate
and public filing compliance, contract cancellation
fees and other transaction costs deemed to be
non-operating in nature
▪ Other non-cash charges are costs related to non-
cash charges and losses on the disposition of
assets, non-cash charges on capitalized installation
and delivery, which primarily includes the costs to
acquire contracts that are expensed over the
estimated life of each contract and non-cash
charges related to accretion of contract rights
under development agreements
▪ New jurisdiction and regulatory license costs
relates primarily to one-time non-operating costs
incurred to obtain new licenses and develop
products for new jurisdictions
▪ Legal & litigation expenses include of payments to
law firms and settlements for matters that are
outside the normal course of business
▪ Acquisition and integration costs include
restructuring and severance and are related to
costs incurred after the purchase of businesses,
such as the acquisitions of Cadillac Jack and
RocketPlay, to integrate operations
▪ Non-cash stock compensation are expenses
related to the value of stock options held by
employees of Cadillac Jack
1
2
3
4
5
6
7
8
2
3
4
5
6
7
1
($ in mm) LTM
Adj. EBITDA reconciliation Q1 Q2 Q3 Q4 2017 Q1
LTM
3/31/18
Net income ($12.4) ($20.1) ($4.1) ($8.5) ($45.1) ($9.5) ($42.3)
Income tax (benefit) expense 2.2 1.3 1.1 (6.5) (1.9) (12.4) (16.6)
Depreciation and amortization 18.5 18.2 16.9 18.1 71.6 19.3 72.5
Other expense (income) (2.8) (1.5) (0.5) 1.9 (2.9) 9.2 9.1
Interest income (0.0) (0.0) (0.0) (0.0) (0.1) (0.1) (0.1)
Interest expense 15.2 14.6 12.7 13.1 55.5 10.4 50.8
Write downs and other 0.2 1.9 0.5 1.8 4.5 1.6 5.9
Loss on extinguishment and modification of debt – 8.1 – 0.9 9.0 4.6 13.6
Other adjustments 0.6 0.9 0.5 0.8 2.9 0.4 2.6
Other non-cash charges 2.1 1.8 1.6 2.3 7.8 1.6 7.3
New jurisdiction and regulatory licensing costs 0.2 0.5 0.6 0.8 2.1 – 1.8
Legal & litigation expenses including settlement payments 0.4 0.2 0.2 (0.2) 0.5 – 0.1
Acquisition & integration related costs 0.6 0.2 0.1 2.0 2.9 1.2 3.5
Non-cash stock compensation – – – – – 8.2 8.2
Adjusted EBITDA $24.9 $26.1 $29.4 $26.4 $106.8 $34.5 $116.4
8
