March 2, 2021

Fourth Quarter:
- $885 million in revenue and $96 million in operating income from continuing operations includes highest Global Lottery revenue and profit performance in two years
- Cash from operating activities of $255 million; combined free cash flow of $191 million in line with prior-year level
- Net loss of $220 million, includes $155 million non-cash foreign exchange loss; combined Adjusted EBITDA of $321 million driven by high profit flow-through of Global Lottery same-store sales growth and benefit from cost-saving actions

Full Year:
- 2020 revenue from continuing operations of $3.12 billion reflects resilience of Global Lottery, including double-digit same-store sales growth in North America in the second half of the year and growing contribution from Digital & Betting activities
- Cash from operating activities totaled $866 million and combined free cash flow was $576 million, among the highest levels in five years
- Reduced net debt by $71 million as reported, $433 million excluding unfavorable foreign currency impact

"The solid results we achieved for this pandemic-impacted year have given us momentum into 2021. They are a result of the vision, agility, and discipline of the IGT team as well as the distinct advantages of our diverse portfolio," said Marco Sala, CEO of IGT. "We also made important strategic progress. The Company undertook a comprehensive reorganization to sharpen our focus on our core competencies and drive structural operational efficiencies. This provides a clear path to increasing shareholder value as we build on our leadership positions with a stronger revenue and profit growth profile."

"We generated $866 million in cash from operating activities during the year, among the highest level in five years, primarily driven by resilient Global Lottery performance and rigorous cost and invested capital controls," said Max Chiara, CFO of IGT. "Liquidity improved more than $300 million to over $2.7 billion. As a leaner, stronger Company, we expect leverage to return to pre-pandemic levels in the next 12-18 months."

Fourth Quarter and Full Year 2020 Key Highlights:

Consolidated:
Generated $866 million in cash from operating activities and $576 million in combined free cash flow during 2020; cash flow performance especially strong in the back half of the year
Achieved $500 million in 2020 temporary cost savings/avoidance
Launched OPtiMa business efficiency program and accelerated timing with $200M+ in targeted savings to be achieved in 2021
Implemented a simplified global organizational structure focused primarily on two business segments: Global Lottery and Global Gaming
Announced agreement to sell Italian B2C gaming businesses for €950 million

Global Lottery:
Delivered highest quarterly segment-level revenue and Adjusted EBITDA in two years in the fourth quarter; full year same-store sales up 7% in North America including the strongest annual growth for instant tickets and draw games in seven years
Awarded long-term contracts with the Czech Republic, Poland and Nebraska lotteries following competitive bid processes in 2020
In 2020, signed two-year contract extensions with the New York, Tennessee, and Minnesota lotteries; seven-year contract extensions with Western Canada Lottery Corporation and, more recently, with the Jamaica lottery

Global Gaming:
Sequential stability in Global Gaming revenue and profit in the fourth quarter; KPIs stable to improving
2020 product highlights: growing acceptance of cashless solutions with Resort Wallet™ launched at Resorts World Catskills and, more recently, obtaining Nevada regulatory approval; entered Historical Horse Racing market; launched Peak family of cabinets
Strong double-digit growth in Digital & Betting for the year
Fourth Quarter 2020 Financial Highlights:

The Company's B2C gaming machine and sports betting activities in Italy have been classified as discontinued operations due to the pending sale of these businesses. Unless otherwise noted, results presented in this release are from continuing operations.

Fourth quarter results reflect the continued, global impact of the COVID-19 pandemic.

Total revenue of $885 million compared to $1.04 billion in the prior-year period

Global Lottery revenue totals $630 million, up 11% from the prior year
Double-digit same-store sales growth in North America with a return to growth in Italy
Reduced by $19 million catch-up adjustment for unspent advertising in Italy
Global Gaming revenue of $255 million, down 46% from the prior year
Impacted by pandemic-related casino closures and operating restrictions
Sequential stability with the third quarter supported by stable to improving KPIs
Digital & Betting service revenue rose nearly 55% compared to the prior year; overall increase of 4% includes impact of non-recurring software sale in the prior year
Operating income of $96 million, up from $40 million in the prior year

Goodwill impairment of $99 million in the prior-year period
High profit flow-through of Global Lottery same-store sales growth
Global Gaming impacted by pandemic-related decline in revenue
Benefit of disciplined cost-saving actions across segments
Net interest expense of $101 million, in line with prior-year period

Provision for income taxes of $73 million compared to $2 million

Higher valuation allowances on deferred tax assets in the current period
Income taxes paid of $51 million versus $77 million in the prior year
Net loss attributable to IGT was $242 million versus $168 million, driven by higher non-cash foreign exchange losses, primarily on Euro-denominated debt instruments

Net loss attributable to IGT per diluted share of $(1.18) compared to $(0.82)

Adjusted EBITDA of $295 million versus $365 million in the prior year

Net debt of $7.32 billion compared to $7.39 billion at December 31, 2019; reduced $71 million as reported, $433 million excluding unfavorable foreign currency impact

Full Year 2020 Financial Highlights:

Year-over-year comparisons reflect the global impact of the COVID-19 pandemic in 2020.

Total revenue was $3.12 billion versus $4.03 billion in the prior year

Global Lottery revenue of $2.16 billion, down 6%, demonstrating remarkable resilience
Global same-store sales stable
Steep recovery in second half driven by double-digit North America same-store sales growth
Global Gaming revenue was $951 million, down 45%, as the pandemic caused protracted casino closures and operating restrictions around the world
Operating loss of $107 million compared to operating income of $478 million in the prior-year period

Impact of lower revenue
Goodwill impairment of $296 million in the current year compared to $99 million in the prior year
Benefit of disciplined cost-saving actions across segments
Net interest expense of $398 million versus $411 million in the prior year, on lower average cost of debt

Provision for income taxes of $28 million versus $131 million in the prior year

Pre-tax loss in 2020 compared to income in 2019, in addition to higher valuation allowances on deferred tax assets in 2020
Income taxes paid of $89 million compared to $197 million in the prior year
Net loss attributable to IGT was $898 million compared to $19 million in the prior-year period, driven by higher non-cash foreign exchange losses, primarily on Euro-denominated debt instruments, and goodwill impairment

Net loss attributable to IGT per diluted share of $(4.39) versus $(0.09)

Adjusted EBITDA totaled $1.01 billion compared to $1.45 billion

Cash from operations was $595 million compared to $907 million in 2019, relatively resilient despite pandemic impact, on solid Global Lottery financial results and diligent invested capital management

Capital expenditures of $255 million versus $377 million in the prior year, reflecting focus on cash cost savings during the pandemic

Cash and cash equivalents of $907 million as of December 31, 2020, versus $655 million as of December 31, 2019

Cash and Liquidity Update

Total liquidity increased over $300 million compared to December 31, 2019, due to strong cash flow generation
At December 31, 2020, liquidity totaled $2.72 billion, comprised of $907 million in unrestricted cash and $1.82 billion available under revolving credit facilities

Conference Call Replay

A telephone replay of the call will be available for one week

• US/Canada replay number: +1 855 859 2056
• Outside the US/Canada replay number: +1 404 537 3406
• ID/Confirmation code: 4538018

Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2020 are calculated using the same foreign exchange rates as the corresponding 2019 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company's financial performance. Management believes these non-GAAP financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with U.S. GAAP.