Brightstar Lottery (BRSL) Investor presentation summary

Market leadership and business model

• Holds a premier position as a global lottery operator, serving ~90 customers across six continents with both B2C and B2B offerings.

• Maintains long-term, exclusive contracts, with ~97% renewal rate in key U.S. and Italy markets over 15 years.

• Generates high recurring revenue, with $2.5B in 2024 revenue and $1.2B in adjusted EBITDA.

• Typical customer relationships span ~30 years, supporting stable, predictable cash flows.

• Market share includes ~78% in U.S. lottery systems and ~90% in Italy.

Growth strategy and digital expansion

• Focuses on expanding share in rebid markets, product innovation, and new sales channels.

• Positioned to benefit from iLottery adoption, providing 5 of 14 live U.S. iLottery platforms and content in 12 jurisdictions globally.

• Italy B2C expansion leverages a large retail base and aims to match European digital penetration benchmarks by 2030.

• Organic growth expected to accelerate to over 5% CAGR from 2025-2028, driven by core business, iLottery, and international expansion.

Financial profile and capital allocation

• Strong cash flow conversion (59% in 2024) and high contractual recurring revenue.

• Peak CapEx cycle of ~$400M annually (2025-2028) to support technology upgrades and growth, moderating to $200-225M post-cycle.

• Balanced capital allocation: debt reduction, shareholder returns (dividends, buybacks), and growth investments.

• Targets net debt leverage of ~3.0x, temporarily rising to ~3.5x for Italy Lotto fee.