Bally Technologies, Inc.
Investor Presentation – July 2013
© 2013 Bally Technologies. NASCAR® is a registered trademark of the National Association for Stock Car Auto Racing, Inc. ©2013 Motorsports Licensing Company, LLC. All trademarks shown are used with the permission of their respective owners. HISTORY,
the H logo, and Pawn Stars are trademarks of A&E Television Networks, LLC. Gold & Silver Pawn is a trademark of Gold & Silver Coin Shop, Inc. © 2013 A&E Television Networks, LLC. All rights reserved. © 2013 The Beach Boys is a trademark of Brother
Records, Inc, and is under license by Bally Gaming, Inc.
Safe Harbor Statement
Certain statements that may be made today will be considered “forward
looking” as that term is defined under the rules of the Securities and
Exchange Commission (“SEC”), and are therefore subject to the safe harbor
created by such rules. Although the Company believes the expectations
reflected in any forward looking information and statements are reasonable,
such forward looking information and statements involve risks and
uncertainties that could lead actual results to differ from those contained in
today’s presentation materials and discussion. The general factors
impacting future results are discussed in detail in the Company’s SEC
filings. The forward looking information and statements in this presentation
speak only as of the date hereof and the Company undertakes no obligation
to update the information contained in this report unless required by law.
Bally Technologies, Inc. (NYSE: BYI)
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Leading Gaming Technology Provider
3
Diversified Business Model
Segment
Gaming Equipment
Gaming Operations
Casino Systems
LTM
Revenue(1)
Overview
YTD
Revenue
Growth(1)
Expected
Gross
Margin
• Sale of Slot Machines,
Conversion Kits, Parts, & Used
Games
• Licensed to Sell in 317
Jurisdictions Worldwide
$348M
36%
17%
~50%
• Lease of Slot Machines in Class
III, Lottery, and Class II Markets
• Fixed Daily Fee and Revenue
Share
$396M
40%
15%
68% - 73%
• Sale of Slot Monitoring, Player
Tracking, Marketing, and
Intelligence Technology
• Global Leader in Systems;
Installed in over 660 Casinos
$235M
24%
15%
70% - 75%
(1) LTM and YTD period ended March 31, 2013.
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Strong Industry Fundamentals
Slots Have the Highest ROI to Casinos

A New Slot’s Payback Can be as Little as Two Months

Slots Generate 70% - 90% of a Typical North American Casino’s Revenue

Spend on Slots is Low Compared to Casino Infrastructure Costs
Large Installed Base of Recurring Revenue Gaming Operations Units

9 – 12% of a Typical Casino Slot Floor
All Casinos Require a System for Slot Monitoring

High Switching Costs

Razor / Razor-Blade Business
Fragmented Customer Base

More than 900 Casinos in North America with ~ 975,000 Gaming Devices
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Disciplined Capital Deployment
Disciplined Allocation of Free Cash Flow
and Balance Sheet Optimization
~ 2.0x Leverage
Value Creating
Acquisitions
Invest in Recurring
Revenue
Game Ops CAGR of
12% since FY08
Share Repurchases
Over $1 Billion since
November 2007
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Focus on Tuck-Ins,
Product Diversification,
and Content Sources
Discussion Topics
Uniquely Positioned
Growth Platforms
Significant Potential
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Bally Is Uniquely Positioned…
Leading Innovator
•Industry Firsts:
•iVIEW DM
•Elite Bonusing Suite
•iDeck
•Pro Curve
•Leading Mobile &
Interactive Platforms
High Visibility and
Diversification
Disciplined Deployment
of Free Cash Flow
•Majority of Revenues are
Recurring in Nature (1)
•Investment in Core
Business & New Markets
•Long-term Contracts
•Lottery, Class II
•Multi-Year Systems
Deals
•Technology Tuck-In
Acquisitions
• Significant and Growing
Maintenance Revenue
•Investments in Brands
•Return Excess Capital to
Shareholders
• Growing Systems Services
(1) Revenues that are recurring in nature is defined as revenues from gaming operations, systems maintenance and systems services revenue.
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… For Further Growth
Organic
New Markets & Products
Future Prospects
N.A. Market vs. Ship Share Trends
~13%
Bally
16 - 22%
Bally
Market
Share
Ship
Share
WAP Market Share
Game Game
Sales Ops Systems
•Canada
•New Products
•South Africa
•Organic and 3rd-Party
Content
•Illinois VGT
~10% Bally
Bally Systems Share, by Casino Size
50%
16%
>2k slots
<1k slots
•New Jurisdictions
•Asia Pacific
•International
VLT
•Interactive
& Mobile
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•Additional Brands
•Operating Leverage
•Value-Creating
Acquisitions
Innovative R&D is Driving Results…
GAMES
ALPHA 2: Pro Series with iDeck
•
•
•
•
•
Customer-Centric
R&D
• 11% of LTM Revenues
Ship Share Improvement
VLT and VGT Penetration
ASP Up 20% Since FY09
Video >80% of Sales vs. 56% in FY09
WAP Base Up 160% Since March 2011
• ~800 R&D Professionals
SYSTEMS
• R&D Employees Up
43% Last 4 years
• Doubled Game Studios
Last 4 Years
iVIEW DM and Elite Bonusing Suite
• Measurable ROI for Customers
• Backward-Compatible Solution
SDS for Windows
•
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2/3 of 116 Competitive Replacements
Signed in FY10 – FY12
… and Outpacing Competitors
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Zinnov | 11
Discussion Topics
Uniquely Positioned
Growth Platforms
Significant Potential
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Gaming Equipment: Innovation Leader
Pro Curve
Growth Opportunities
Improve Ship Share
Expand Content
Penetrate Under-Represented Markets
Global VLT
International
Expand Gross Margins
New Property Openings
Replacement-Market Improvement
Conversion Kits
100 New Units Sold = $0.01 of EPS
100bp Increase in Margin = $0.05 of EPS
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iDeck
Gaming Operations: Premium Growth Potential
Growth Opportunities
New Premium
Daily-Fee Games
New WAPs
100 Premium Games
= $0.02 of EPS
100 WAPs
= $0.03 of EPS
WAP
Premium Daily Fee
Video Lottery
New Casinos / Markets
International
Grow Portfolio of Brands
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2,365
1,263
910
3Q11
2Q12
3Q13
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NASCAR, Hot Shot Progressive, and Future Titles
Significant WAP Growth
Bally is the Global Systems Leader
Total Slots Connected to Systems – Year-End
(1)
500,000
Bally
IGT
Aristocrat
Konami
Other
400,000
300,000
200,000
100,000
CY04
CY05
CY06
CY07
CY08
CY09
CY10
CY11
CY12
Each New 2,000-Unit System:
• Installation = $0.09 of EPS
• Maintenance = $0.01 of EPS
(1) Source – Eilers Research, LLC & Company Reports. IGT, Konami, and Other units are estimated. Aristocrat units are for N. America while
IGT, Bally, and Konami are worldwide.
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…With Multiple LT Growth Opportunities
FUTURE REVENUE DRIVERS
# OF GAMES
$ PER GAME
$ POTENTIAL
~450k+
~ $2,500
$1,100M
Market Share Gains (Competitive Replacements)
~120k
~ 3,500
420M
New Market Opportunities (50% Share)
~100k
~ 3,500
350M
OVER 5-7 YEARS
Current Customers to Sell New Products
RECURRING SEGMENTS – PER ANNUM
Increasing Maintenance
$8-12M
Increasing Services
$5-10M
LTM Maintenance Revenues of $86 Million; Growing at a 16% CAGR since FY08
Each New 2,000-Unit System Impact on EPS:
• Installation
$0.09
• Recurring Maintenance Revenue $0.01
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iVIEW DM and Elite Bonusing Suite
ROI-Generating, Floor-Wide Tools to Excite and Reward Players

Picture-in-Picture Technology

Automated and Personalized Promotions

Multiple Screens or Separate Screen

Real-Time and Customized Marketing at Point of Play

Backward Compatible

Floor-Wide Bonusing

Works on Most Manufacturers’ Games

Slot Tournaments
10,000 iView DMs
= $0.13 of EPS
Driving ROI!
Elite Bonusing Suite Customer Case Studies:
• SoCal: Rated Play Up 17%, Floor-Wide Coin-In Up 12%, Players Database Up 10%
• Reno: Coin-In Up 40% on DM-Enabled Machines
• Vegas: Coin-In Up 28% from Virtual Racing Event
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Discussion Topics
Uniquely Positioned
Growth Platforms
Significant Potential
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Global Gaming Expansion to Continue
Economic Uncertainty Has Led to New Markets Since 2008

Ohio: 20k-30k
Illinois VGT: 15k-30k

Massachusetts: 7k-10k
Maryland: 12k-15k

Italy: 57k
Philippines: 5k-10k
Several Additional Expansions / New Markets are Possible

Greece: 35k
Japan: 5k
Illinois Expansion: 20k

New Hampshire: 5k
Kentucky: 14k
Florida Expansion: 15k

Texas: 25k-50k
New York (non-track): 14k
Continued Replacement Cycle Improvement
New Property Openings and Expansions in Existing Markets
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Long-Term Global Growth Dynamics
Systems
Gaming Operations
• Multi-Year Contracts
• SDS for Windows
• iVIEW DM & EBS
• Top-Tier Brands
• WAP & Premium Growth
• Global Lottery
Gaming Equipment
• Content = Ship Share
• New Markets
• VLTs & VGTs
INNOVATION, VISIBILITY & DIVERSIFICATION, and
CAPITAL MANAGEMENT Position Bally Well for
Revenue and EPS Growth
Midpoint of FY13 Diluted EPS Guidance of $3.35 to $3.45(1)
Represents 2-Year Diluted EPS CAGR of 36%!
(1) Fiscal guidance as provided on April 24, 2013.
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