LNW NASDAQ • ASX L I S T E D I NVE ST OR DAY New York City • May 20, 2025 INVESTOR DAY 2025 3 LNW NASDAQ • ASX L I S T E D INVESTOR DAY 2025 2 Agenda LNW NASDAQ • ASX L I S T E D | Introduction | Business Overview and Strategy | | --- | --- | | Products, Business Verticals, | Our Unique Business Model and Leading | | & Cross-Platform | Positions | | Expert Panel | Differentiation Among Gaming Industry | | Financials | Robust Foundation and Opportunity for | | | Continued Growth | | Q&A | | INVESTOR DAY 2025 ...

Summary of Light & Wonder (LNW) 2025 Investor Day Company Overview - **Company Name**: Light & Wonder (LNW) - **Headquarters**: Las Vegas, Nevada - **Market Presence**: Dual listed on NASDAQ and ASX, with nearly 40% of market cap on ASX - **Employee Count**: Approximately 6,500 globally - **Revenue**: Consolidated revenue of just under GBP 3.2 billion, representing a 13% CAGR since 2022 [8][9][27] Financial Performance - **EBITDA**: Grew to $1.24 billion, a 17% CAGR [9][27] - **NPATA**: Increased to $480 million, a 24% CAGR [9][27] - **Debt Reduction**: Leverage reduced from 10.5 times in 2020 to 3 times currently [29] - **Shareholder Returns**: $1.2 billion returned to shareholders through share repurchase programs [29] Strategic Initiatives - **Acquisition of Grover Charitable Gaming**: Aimed at enhancing growth in the charitable gaming segment, which is a fast-growing adjacency with over 20% top-line growth [54][55][59] - **R&D Investment**: Increased internal rate of investment in R&D and CapEx by 28% since 2022 [22][28] - **Future Financial Targets**: Targeting $2 billion in EBITDA by 2028 and doubling NPATA per share from $5.27 to over $10.55 [33][34] Market Position and Growth Strategy - **Gaming Segments**: Focus on gaming, iGaming, social casino, and now charitable gaming [42] - **Game Performance**: Held 28% of the top new core performing games in North America as of the latest report [25][27] - **Expansion Plans**: Plans to enter new markets, including Indiana, which presents a $100 million revenue opportunity [79] Charitable Gaming Insights - **Market Size**: Charitable gaming market valued at $4.4 billion, with $1.1 billion allocated to electronic pull tabs [73] - **Customer Loyalty**: Strong customer base committed to supporting charities through gaming [74] - **Integration of Grover**: Grover's existing game mechanics will be enhanced with Light & Wonder's game catalog, improving quality and profitability [62][100] Corporate Culture and ESG Commitment - **High-Performance Culture**: Emphasis on attracting and retaining top talent, with a focus on collaboration and integrity [45][49] - **ESG Initiatives**: Investment in responsible gaming programs and alignment with UN Sustainable Development Goals [51][53] Conclusion - **Future Outlook**: Light & Wonder is positioned for significant growth through strategic acquisitions, enhanced R&D, and a focus on high-quality game development across multiple gaming segments, including the newly integrated charitable gaming sector [41][43][100]

Core Insights - Light & Wonder (NASDAQ: LNW) has experienced a significant stock price increase of 900% after divesting its lottery and sports betting units, which resulted in the elimination of over $1 billion in net debt [1] Company Overview - The company sold its lottery arm to Brookfield and its sports betting unit to Endeavor, focusing on its core business operations [1] Financial Impact - The divestitures led to a substantial reduction in net debt, enhancing the company's financial position and investor confidence [1]

Core Viewpoint - Light & Wonder, Inc. is transitioning from a gaming stock to a diversified, cross-platform content business characterized by high margins, strong recurring revenues, and an expanding digital presence [1] Group 1 - The company is evolving into a more valuable entity beyond its initial classification as a gaming stock [1] - It is focusing on building a diversified content business that leverages multiple platforms [1] - The business model is expected to yield high margins and strong recurring revenues [1]

Core Insights - Light & Wonder, Inc. reported modest first-quarter 2025 results with adjusted earnings surpassing Zacks Consensus Estimate while revenues missed expectations [1] Financial Performance - Net income for the quarter remained unchanged at $82 million or 94 cents per share compared to $82 million or 88 cents per share in the prior-year quarter, with quarterly earnings beating the Zacks Consensus Estimate by 18 cents [3] - Total revenues for Q1 2025 rose to $774 million from $756 million in the prior-year quarter, marking the 16th consecutive quarter of year-over-year revenue growth, although it missed the consensus estimate of $809 million [4] - Gaming revenues were $495 million, up 4% year over year, while SciPlay generated $202 million in revenues, down 2% year over year [5] - iGaming revenues increased 4% year over year to $77 million, driven by strong demand in North America and global market growth [6] Operational Efficiency - Non-GAAP consolidated AEBITDA improved to $311 million from $281 million in the year-ago quarter, with AEBITDA margin increasing to 40% from 37% [7] Cash Flow and Liquidity - The company generated a cash flow of $185 million from operating activities in Q1 2025, compared to $171 million in the prior-year quarter, with $134 million in cash and cash equivalents and $3.88 billion of long-term debt as of March 31, 2025 [8]

Core Insights - Light & Wonder reported revenue of $774 million for the quarter ended March 2025, reflecting a 2.4% increase year-over-year, but a revenue surprise of -4.28% compared to the Zacks Consensus Estimate of $808.58 million [1] - The company's EPS was $1.35, up from $0.93 in the same quarter last year, resulting in an EPS surprise of +15.38% against the consensus estimate of $1.17 [1] Revenue Performance - SciPlay revenue was $202 million, below the average estimate of $222.59 million, representing a year-over-year decline of -1.9% [4] - Gaming revenue reached $495 million, slightly below the average estimate of $511.28 million, with a year-over-year increase of +4% [4] - iGaming revenue was reported at $77 million, also below the average estimate of $81.40 million, showing a year-over-year growth of +4.1% [4] AEBITDA Metrics - AEBITDA for Gaming was $254 million, closely matching the average estimate of $254.30 million [4] - AEBITDA for Corporate was reported at -$34 million, better than the average estimate of -$38.93 million [4] - AEBITDA for iGaming was $27 million, slightly above the average estimate of $26.78 million [4] - AEBITDA for SciPlay was $64 million, below the average estimate of $69.06 million [4] Stock Performance - Light & Wonder shares have returned +20.7% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Light & Wonder reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, and showing an increase from $0.93 per share a year ago, resulting in an earnings surprise of 15.38% [1] - The company posted revenues of $774 million for the quarter ended March 2025, which was 4.28% below the Zacks Consensus Estimate, but an increase from $756 million year-over-year [2] - Light & Wonder has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has gained approximately 8.7% since the beginning of the year, contrasting with a decline of 4.7% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $863.51 million, and for the current fiscal year, it is $5.72 on revenues of $3.45 billion [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 44% of over 250 Zacks industries, suggesting potential underperformance compared to the top 50% [8]

Financial Data and Key Metrics Changes - The company reported consolidated revenue growth of 2% year over year to $774 million, marking the sixteenth consecutive quarter of revenue growth [21] - Net income increased to $82 million, with diluted net income per share rising to $0.94 from $0.88 in the prior year [22] - Consolidated EBITDA grew by 11% to $311 million, resulting in a consolidated EBITDA margin of 40%, a 300 basis point increase year over year [22][24] Business Line Data and Key Metrics Changes - Gaming revenue reached $495 million, a 4% increase, with EBITDA growing 9% to $254 million, reflecting a margin expansion of 200 basis points to 51% [24][26] - SciPlay revenue was $202 million, with EBITDA growing 3% to $64 million, representing a margin of 32% [27] - iGaming revenue increased by 4% to $77 million, with EBITDA growing 8% to a record $27 million [30] Market Data and Key Metrics Changes - The North American installed gaming base increased by approximately 500 units sequentially, with over 34,000 units now in operation [8][25] - Global gaming machine sales were $208 million, up 1% year over year, with a 26% increase in North American replacement market shipments [25][26] - The U.S. and Canada markets saw GGR increases of 3011% year over year, indicating strong market performance [14] Company Strategy and Development Direction - The company is focused on a comprehensive product roadmap and operational excellence, aiming for sustainable growth through R&D investments [5][6] - A strategic acquisition of Grover Gaming's charitable gaming asset is expected to enhance the company's role in the global gaming market [17][18] - The company plans to continue leveraging its diverse game franchises and first-party content to drive future growth [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gaming industry's resilience despite potential macroeconomic challenges [6][7] - The company is committed to achieving its 2025 consolidated EBITDA target of $1.4 billion, despite tariff headwinds [35] - Management noted that GGR remains a critical metric, with strong performance observed across U.S. markets [86] Other Important Information - The company has implemented measures to mitigate tariff impacts, including diversifying the supply chain and pulling forward inventory [41][91] - The direct-to-consumer (DTC) platform has seen significant growth, now accounting for over 13% of revenue, with plans for further expansion [13][56] - The company is preparing for an upcoming Investor Day to discuss its fundamentals and growth strategy [19][20] Q&A Session Summary Question: Impact of tariffs on the business - Management indicated that tariffs are currently manageable, with strategies in place to mitigate costs and maintain targets [41][42][44] Question: U.S. Gaming operations yield - Management noted that weather-related factors impacted yields, but overall trading has returned to normal [50][51] Question: SciPlay business and DTC strategy - Management expressed excitement about a recent favorable ruling regarding alternative payment methods, which will support DTC growth [56][57] Question: International gaming business performance - Management acknowledged a decline in the international installed base but attributed it to tough comparisons from the previous year [62][63] Question: Update on dual listing exploration - Management confirmed ongoing discussions about an Australian listing but indicated a cautious approach due to market uncertainties [72][74] Question: Pathways to achieve EBITDA guidance - Management highlighted the importance of maintaining momentum in gaming operations and optimizing costs to reach the $1.4 billion EBITDA target [78][84]

Financial Data and Key Metrics Changes - The company reported consolidated revenue growth for the sixteenth consecutive quarter, with a 2% increase to $774 million compared to the prior year, driven by gaming and iGaming businesses [20][21] - Net income was $82 million, resulting in diluted net income per share of $0.94, up from $0.88 in the prior year [21] - Consolidated EBITDA grew by 11% to $311 million, with a consolidated EBITDA margin of 40%, a 300 basis point increase year over year [21][30] - Adjusted NPATA increased by 11% year over year to $117 million, with adjusted NPATA per share rising 21% to $1.35 [21][22] Business Line Data and Key Metrics Changes - Gaming revenue reached $495 million, a 4% uplift, with EBITDA growing 9% to $254 million, reflecting a margin expansion of 200 basis points to 51% [22][23] - Gaming operations generated $173 million in revenue, a 5% increase year over year, with an average revenue per day of over $48 [23] - SciPlay revenue was $202 million, with Quick Hit Slots achieving record performance, contributing to a 3% EBITDA growth to $64 million [26][27] - iGaming revenue increased 4% year over year to $77 million, with EBITDA growing 8% to a record $27 million [29] Market Data and Key Metrics Changes - The North American installed base increased by approximately 500 units sequentially, totaling over 34,000 units, with 51% of the fleet classified as premium [6][23] - The company regained the number one position in Australia for ship share, supported by strong game franchises [7] - The U.S. and Canada markets saw GGR increases of 3011% year over year, indicating robust growth in iGaming [12] Company Strategy and Development Direction - The company is focused on operational excellence, a comprehensive product roadmap, and reinvesting in R&D for sustainable growth [4][5] - A strategic acquisition of Grover Gaming's charitable gaming asset is expected to enhance the company's role in the global games market [16][17] - The company aims to maintain a high return on investment while expanding its direct-to-consumer platform [11][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gaming industry's resilience despite potential macroeconomic challenges [5][34] - The company is committed to achieving its 2025 consolidated EBITDA target of $1.4 billion, despite tariff headwinds [34] - Management noted that GGR remains a critical metric, with strong performance observed across U.S. markets [84] Other Important Information - The company has implemented measures to mitigate tariff impacts, including diversifying the supply chain and pulling forward inventory [89][91] - The direct-to-consumer platform has seen significant growth, now accounting for over 13% of revenue [11][54] Q&A Session Summary Question: Impact of tariffs on business - Management indicated that tariffs are currently manageable, with strategies in place to mitigate costs and maintain revenue targets [40][41] Question: U.S. gaming operations yield - Management noted that weather-related factors impacted yields, but overall trading has returned to normal [48][49] Question: SciPlay business and DTC strategy - Management expressed excitement about a recent favorable ruling regarding alternative payment methods, which will enhance the DTC strategy [54][55] Question: International gaming business performance - Management acknowledged a decline in international installed base due to tough comparisons from the previous year but remains optimistic about future contributions [61][62] Question: Update on dual listing strategy - Management confirmed ongoing discussions regarding an Australian listing but indicated a cautious approach due to market uncertainties [70][72] Question: Pathways to achieving EBITDA guidance - Management reiterated the importance of maintaining momentum in gaming operations and optimizing costs to achieve the $1.4 billion EBITDA target [76][80]

Financial Performance - Consolidated Revenue increased by 2% year-over-year, from $756 million to $774 million[10, 50] - Consolidated AEBITDA grew by 11% year-over-year, from $281 million to $311 million[10, 50] - Adjusted NPATA increased by 11% compared to the prior year period[18] - Adjusted NPATA per Share increased over 20% to $135 compared to $112 in the prior year period[51] - Free Cash Flow was $111 million, up 19% compared to $93 million in the prior year period[60, 63] Segment Performance - Gaming revenue increased by 4% year-over-year, from $476 million to $495 million[22] - SciPlay AEBITDA increased by 3% year-over-year, from $62 million to $64 million[33] - iGaming revenue increased by 4% year-over-year, from $74 million to $77 million[41] Capital Allocation - Returned $166 million to shareholders in 1Q25 through share repurchases, completing approximately 45% of the total $1 billion program authorization[18] - Net debt leverage ratio was 30x, within the targeted range of 25x to 35x[18] - Interest expense decreased 9% year-over-year, from $75 million to $68 million[57]