Still Waiting For The Feature

Research evidence excerpt

Still Waiting For The Feature

n new cabinet going 360340

forward) which should fill any content gaps, although we expect 2H26 step-up in ANZ sales 320300

to occur largely from 4Q26. 1Q25 2Q25 3Q25 4Q25 1Q26 JEF2Q26 3Q26VA 4Q26 1Q27 2Q27 3Q27 4Q27

.

Source: Company reports, Visible Alpha, Jefferies estimates

High-end of MSD-HSD% AEBITDA growth in FY26 looks difficult to achieve in our view

unless a strong recovery in social or meaningful pick-up in ANZ ship share. We have limited Exhibit 2 - LNW AEBITDA Growth by Segment

confidence in SciPlay recovery, forecasting FY26 revenue -8% y-y. We do expect LNW could 30%25% 28%

achieve 25-30% ANZ share, although game release timing will see this as a 4Q26/1Q27 event 20%15% 13% 15% 16% 15%

6% 7% 5%in our view. We forecast 4.5% AEBITDA growth in FY26 (prev 5.6%). 10% 7% 8% 3%

0%

2%

-5% -6%

Capital management. LNW repurchased $188m of stock in 2Q26, up sharply from $22m -10% FY25 FY26 FY27 FY28

in 1Q26. We believe clearer guidance on future buybacks is needed to support investor . Gaming SciPlay iGaming

confidence. Our forecasts assume $200m of buybacks in 2H26, resulting in ND/AEBITDA Source: Company reports, Jefferies estimates

falling below 3x in 3Q27, later than management's 1H27 target. In our view, achieving this

target would require either stronger cash conversion than we forecast or a pause in buybacks.

Longer term, we expect LNW to adopt a lower leverage range of ~2–3x.

Reiterate BUY despite gearing and earnings risks. We reiterate BUY, largely on valuation.

LNW screens cheap on a PE basis. However, we acknowledge investors are unlikely to reward

buyback-driven EPS growth; we change from a PER to EV/EBITDA SOTP valuation to capture

SciPlay's lower multiple earnings and group net debt in valuation.