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    Justin Barratt • CLSA

    Justin Barratt's questions to Light & Wonder Inc (LNW) leadership

    Justin Barratt's questions to Light & Wonder Inc (LNW) leadership • Q2 22025

    Question

    Justin Barratt from CLSA Limited noted another relatively weak quarter for free cash flow and asked if there were any near-term catalysts that would lead to a material improvement in the company's cash flow conversion.

    Answer

    CFO Oliver Chow explained that the quarter's free cash flow was significantly impacted by a one-time $73 million legacy legal settlement payment. He stated that when normalized for this payment, free cash flow saw a considerable year-over-year increase to over $100 million, representing a 77% conversion rate from adjusted NPATA. Chow expressed confidence that the highly cash-generative nature of the base business, now augmented by Grover, will provide healthy, sustainable cash flow going forward.

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    Justin Barratt's questions to Light & Wonder Inc (LNW) leadership • Q1 2025

    Question

    Justin Barratt of CLSA followed up on guidance, asking if the path to the $1.4 billion EBITDA target would be driven by even contributions from revenue growth and margin expansion for the rest of the year.

    Answer

    CEO Matt Wilson declined to give specific mix guidance but did state to expect a "tick up in terms of the revenue growth" in the coming quarters. He then highlighted the pending Grover Gaming acquisition as a key factor, noting it's a fast-growing, recurring revenue business that will provide a tailwind, especially with the unexpected legalization of e-gaming in Indiana.

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    Justin Barratt's questions to Light & Wonder Inc (LNW) leadership • Q4 2024

    Question

    Justin Barratt inquired about the company's considerations regarding a potential dual primary or sole listing on the ASX and the timeline for a decision.

    Answer

    CEO Matt Wilson explained the exploration was prompted by investor inquiries, particularly as U.S. peers are being taken private. The goal is to find ways to accelerate the adoption of its ASX listing. He clarified that no decision has been made and it is an exploratory process to optimize shareholder value. A decision is expected after engaging with investors over the 'next few months.'

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