Welcome. April Bally Technologies, Inc.

Transcription

1 Welcome April 2008 Bally Technologies, Inc. 1

2 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 (NYSE: BYI) 2

3 Today s Presentation Overview Financial Momentum Gaming Products System Gaming Market Opportunities 3

4 Bally Overview Innovative Gaming Products Advances in Reel-Spinning Products Video and Specialty Games (Including Poker) Strong Gaming Operations Wide-Area Progressives Daily-Fee and Rental Games System Determined Games Leadership in Systems $134 Customer Choice and Flexibility Broad Functionality Across All Technology Platforms System Gaming Technologies Here TODAY! TODAY! Casino Operations in Vicksburg, Mississippi $324 FY 2007 Revenues $682 Million ($ Millions) $176 $48 4

5 Fastest Growing Major Supplier $900.0 $800.0 $700.0 $682.3 FY 2008 Estimated Revenue $875 Million + $600.0 $541.6 $500.0 $469.7 $474.8 Systems $400.0 $352.6 Game Sales $300.0 Game Operations $200.0 $100.0 $0.0 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY

6 Financial Momentum $ Millions, except per share amounts Q2 FY 2007 FY 2008 Q3 Q4 Q1 Q2 Revenues $150.9 $175.2 $202.4 $189.0 $230.7 Net income (loss) (2.5) Diluted EPS $ (0.05) $ 0.12 $ 0.33 $ 0.37 $ 0.42 SG&A as a percent of revenue 33% 29% 28% 28% 26% 6

7 Financial Results/Guidance $ Millions, except per share amounts Actual Guidance FY 2007 Full Year FY 2008 Full Year 8/21/2007 2/13/2008 Revenues $ 682 $ 830+ $ 875+ Diluted EPS $ 0.40 $1.25 to $1.55 $1.60 to $1.90 Q1 FY08 Actual - $189 Revenue, Diluted EPS $0.37 Q2 FY08 Actual - $231 Revenue, Diluted EPS $0.42 7

8 Research and Development Single Game Technology Platform Reorganized Development Teams & Processes 3 rd Party Developers Save $25M India Centers o Bally Employees o Bangalore & Chennai o Cost, Speed & Quality Annually R&D Personnel Up 180% in 30 Months Over 35% of Total Employees R&D Customer Focused Result = Market Share Gains! 6/05 12/07 8

9 Full Range of Products Modular Cabinets Video and Stepper Products Compete in All Product Categories Focus on Player Comfort and Time on Device Excellent Value Proposition for Buyers & Players 9

10 $108.4 Gaming Equipment $70.4 GM 44% 34% Q Q ALPHA OS Platform Innovation Leader Single Platform for Video & Stepper Supports System Driven Class II, Class III & Video Lottery Stepper 5 and 7 Reel CineVision CineReels GameMaker HD Increased Titles to Market 70 Titles released in FY

11 Gaming Operations Growth $40.4 $54.2 Last Twelve Months 34% Increase in Revenues 38% Increase in Install Base 62% Gross Margin Hot Shot - Most Successful Title in Bally History! Q Q Revenues 11

12 Increasing Market Share Existing North America Footprint ~11 to 13% One Year Ago ~ 17% Florida & Pennsylvania Openings Recent Openings ~ 25% LVS Palazzo MGM Detroit Mount Airy Penn National Raceway Expansions and Re-Orders 25%+ 2 nd nd Quarter Ship Share ~ 29% 12

13 Bally is the System Gaming Leader 19 of 27 Casinos With Over 3,000 Slots Use Bally Systems 4 Aristocrat, 2 Other, 1 MGAM, 1 IGT 27 New Customers & 73 New Sites in Last 18 Months 10 Customers & 31 Casinos Committed to Ethernet Over 35,000 Networked Games TODAY Washington State Since 1999 ~16,000 System Determined Games in 32 Sites Florida Since 2002 ~10,000 Class II & Class III Games Mexico Since 2005 ~4,000 System Determined Games in 40 Sites New York 50% of the Market with Over 5,000 System Determined Games Over 28 Customers Commit to >105,000 iviews 13

14 19 of 27 Casinos With Over 3,000 Slots Use Bally Systems Bally Systems Borgata Hotel Casino and Spa Bally s AC Wild Wild West Claridge Caesars Atlantic City Foxwoods Resort Casino Harrahs Atlantic City Harrahs Cherokee Casino Mohegan Sun Hotel & Casino Morongo Casino Resort Mystic Lake Casino Hotel The Orleans Pechanga Resort & Casino Sam s Town Hotel & Gambling Hall Seminole Hard Rock Casino Tampa Seneca Niagara Casino & Hotel Showboat Atlantic City Silver Star Hotel & Casino Tropicana Atlantic City Resort Trump Taj Mahal Casino Resort Twin River Aristocrat Other Vendors Ameristar Casino St. Charles Charles Town Races & Slots Mountaineer Racetrack & Gaming Soaring Eagle Casino & Resort Muscogee Creek Nation Tulsa VictoryLand & Quincy s 777 Casino Multimedia Games IGT Empire City at Yonkers Raceway MGM Grand Detroit Casino *Source: Casino City s Gaming Business Directory 2008 Edition 14

15 Over 28 Customers Commit to iview Communication Network Las Vegas Sands 10,810 Codere de Mexico 9,859 Chickasaw 8,135 Boyd Gaming 7,667 Seminoles 6,663 Foxwoods 6,514 Penn National 5,536 Twin Rivers 4,752 Pechanga 4,300 Borgata 4,068 Pinnacle Entertainment 3,600 Martinez Group 2,740 Viejas Casino 2,555 Mount Airy Casino 2,500 South Point 2,450 Philadelphia Park 2,239 Spotlight 29 2,000 Fantasy Springs 1,956 MGM Grand at Foxwoods 1,540 Codere Panama 1,416 U.S. Air Force 1,384 Gulfstream Park 1,213 French Lick Resort 1,202 Mohegan Sun at Pocono Downs 1,081 Harlow s Casino 905 Greektown Casino 800 London Clubs 718 Casino de Campione 610 Various 5,826 >105,000 15

16 Bally Systems Vision Bally, and our partners, will be the leaders in providing networked solutions for the gaming industry. 16

17 Data Analysis The Networked Floor Bally Business Intelligence Data Visualization TeraData Data Warehouse Microsoft Slot Management Casino Marketing Download & Configuration System Gaming Tableview Accounting TITO Reporting Monitoring S2S Marketing Cage Mgt. Player Tracking Configuration Scheduling Security Live Rewards Tournaments Media Manager Custom Apps. S2S S2S S2S Ratings Comps Credits Inventory Accounting Power Bonusing Ethernet Floor G2S Bally CPU iview iview DM iview DM G2S Bally CPU 17

18 Tangible Benefits from System Gaming The iview network and Bally Systems will provide: Improved Service Customized Marketing at the Point of Play 2 nd Ways to Win New Transactions & Experiences Inventory Polling & Interrogation Dynamic Game Configuration & Revenue Management Background or Foreground Downloading Support for Responsible Gaming On games from every manufacturer! 18

19 Today Game CPU System CPU Two CPU architecture in the game System The Game CPU is: a purpose built CPU the most highly regulated technology in gaming The System CPU is associated equipment held to a lower standard than gaming responsible for employee tracking responsible for player tracking and marketing at the game where innovation is occurring 19

20 One CPU Approach Game CPU System CPU System Eliminating the system CPU now Issues: Requires all manufacturers to disrupt existing roadmaps Requires a purpose built game CPU to become multi-tasking Requires redefinition of gaming and associated equipment Is not sensitive to the current installed base Requires all transactions and connections to go through the game This area is cluttered with IP issues 20

21 Bally Approach Game CPU System CPU System Add more functionality to the System CPU For most customers and installations this makes the most sense Allows for more and faster innovation Allows for backward and forward migration Does not force all applications to be reviewed as gaming devices Provides a place for interoperability to be created Connects to dual port devices for non-gaming functions Provides a logical and lower risk migration path to one CPU 21

22 Business Intelligence 22

23 Solutions Available Today Business Intelligence Analysis Visualization In-Game Revenue Management Peripheral Management iview Tournament Management iview Games iview Bonusing iview Marketing GSA Standards Implemented System-Ready Games GameMaker HD Open Technology Partnerships Proven ROI New in 2008 Command and Control iview Downloading Multi-Media iview Capabilities Game Content Download iview Content Publishing Suite Live Rewards and Media SDK iview DM (Picture in Picture) Field Trials 23

24 Domestic Market Opportunities Core Markets Midwest Florida Washington California Oklahoma Opportunities New Jurisdictions New Openings Replacement Cycle 24

25 International Market Opportunities International Revenues FY2006 FY2007 FY2008* 10% 12% 14% Core Markets Mexico Latin America South America Asia/Macau Western Europe Opportunities Australia South Africa Eastern Europe Singapore *Based on FY 08 Guidance 25

26 Why Invest in Bally? Increasing Market Share Games and Systems Leadership in System Gaming Growing Market Opportunities International and Domestic Operating Margin Improvements 26

27 THANK YOU Questions? 27