12 April 2023 | 10:34PM AEST

Aristocrat Leisure (ALL.AX)

CL

Deep dive into Mobile gaming & iGaming uncovers upside to drive
Buy

re-rating; reiterate Buy, add to CL

ALL.AX 12m Price Target: A$45.70 Price: A$37.81 Upside: 20.9%

Darshana Nair Syama
+61(2)9320-1395 | [email protected]
Goldman Sachs Australia Pty Ltd

Recent investor debates on ALL have been concentrated on 2 key Lisa Deng
+61(2)9320-1084 | [email protected]
areas: 1/ How do we factor in game decay and new game pipeline Goldman Sachs Australia Pty Ltd

for Pixel United and 2/ What is realistically achievable in the iGaming James Leigh
+61(3)9679-1083 | [email protected]
venture. In this report we try to deep-dive into various aspects of Goldman Sachs Australia Pty Ltd

these questions.

For Pixel United, we believe that there is less concern on the

outlook for Social casino games vs. games like RAID where decline Key Data __________________________________
Market cap: A$25.3bn / $16.8bn
in game revenue is more likely. We update our outlook for RAID to Enterprise value: A$24.4bn / $16.2bn
3m ADTV: A$46.5mn / $31.7mn
factor in a natural game decline based on similar Squad RPG games, Australia
ANZ Consumer
although recent in-game activations offer further upside to this view. M&A Rank: 3
Leases incl. in net debt & EV?: Yes
Excluding these, it is notable that earnings from New Game pipeline Australia/NZ Conviction List

only contributes to c. 11% return on the cumulative D&D spend for GS Forecast ________________________________
9/22 9/23E 9/24E 9/25E
new game development. Revenue (A$ mn) New 5,573.7 6,007.6 5,946.6 6,036.2
Revenue (A$ mn) Old 5,573.7 5,990.8 5,862.0 5,817.2
For Anaxi, we believe that the market currently only factors in a very EBITDA (A$ mn) 1,835.9 2,048.1 2,105.2 2,161.4
EPS (A$) New 1.65 1.96 2.07 2.15
conservative expectation of market penetration in the iSlots EPS (A$) Old 1.65 1.95 2.01 1.98
P/E (X) 23.3 19.3 18.3 17.6
segment for ALL. More importantly, we believe that the market P/B (X) 4.3 4.0 3.6 3.2
assumption of c. 24% margins is extremely conservative when

8fa44ad88c4744549a6329bd22c7ba5e
Dividend yield (%) 1.4 2.1 2.2 2.3
CROCI (%) 26.0 23.5 23.1 22.9
compared to key B2B peers. In a bull case scenario, we believe that
9/22 3/23E 9/23E 3/24E
Anaxi’s contribution to group valuation can be as high as A$9.1 per
EPS (A$) 0.77 1.01 0.95 0.95
share and that ALL’s balance sheet capacity offers further upside
GS Factor Profile ____________________________
opportunities. Growth

Financial Returns
Overall, we update our earnings outlook on ALL by 3%/8% over
FY24/25e and our 12m Target Price by +6.8% to A$45.70. ALL Multiple

currently trades at 18.5x P/E, below longer-term averages of 21.3x. Integrated

At current valuation levels, the market only factors in Anaxi as more

Percentile 20th 40th 60th 80th 100th
of a free-optionality that comes along with the more established
gaming businesses in our view. We add ALL to our Conviction List ALL.AX relative to Australia & New Zealand Coverage
ALL.AX relative to ANZ Consumer
while maintaining the Buy rating.
Source: Company data, Goldman Sachs Research estimates.
See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result,
investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this
report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC
certification and other important disclosures, see the Disclosure Appendix, or go to
www.gs.com/research/hedge.html. Analysts employed by non-US affiliates are not registered/qualified as research
analysts with FINRA in the U.S.
Goldman Sachs Aristocrat Leisure (ALL.AX)

Aristocrat Leisure (ALL.AX) Income Statement (A$ mn) _________________________________

Buy CL Rating since Apr 27, 2022 Total revenue
9/22
5,573.7
9/23E
6,007.6
9/24E
5,946.6
9/25E
6,036.2
Cost of goods sold (2,953.8) (3,104.6) (3,001.6) (3,020.3)
SG&A -- -- -- --
Ratios & Valuation _______________________________________ R&D (666.5) (720.9) (701.7) (712.3)
9/22 9/23E 9/24E 9/25E Other operating inc./(exp.) (117.5) (134.1) (138.1) (142.2)
P/E (X) 23.3 19.3 18.3 17.6 EBITDA 1,835.9 2,048.1 2,105.2 2,161.4
P/B (X) 4.3 4.0 3.6 3.2 Depreciation & amortization (243.0) (270.3) (267.6) (271.6)
FCF yield (%) 3.6 5.1 5.5 5.7 EBIT 1,592.9 1,777.7 1,837.6 1,889.8
EV/EBITDAR (X) 13.6 11.6 10.8 10.1 Net interest inc./(exp.) (137.7) (83.6) (73.9) (66.7)
EV/EBITDA (excl. leases) (X) 13.5 11.5 10.7 10.0 Income/(loss) from associates -- -- -- --
CROCI (%) 26.0 23.5 23.1 22.9 Pre-tax profit 1,455.2 1,694.1 1,763.6 1,823.1
ROE (%) 22.2 20.9 20.5 19.3 Provision for taxes (355.9) (415.1) (432.1) (446.7)
Net debt/equity (%) (9.4) (14.5) (22.3) (31.3) Minority interest -- -- -- --
Net debt/equity (excl. leases) (%) (13.9) (18.9) (26.3) (34.9) Preferred dividends -- -- -- --
Interest cover (X) 6.3 12.1 16.6 17.1 Net inc. (pre-exceptionals) 1,099.3 1,279.0 1,331.5 1,376.4
Days inventory outst, sales 13.4 15.7 16.4 16.2 Post-tax exceptionals -- -- -- --
Receivable days 50.0 62.7 74.6 73.7 Net inc. (post-exceptionals) 1,099.3 1,279.0 1,331.5 1,376.4
Days payable outstanding 105.5 125.3 152.8 152.2 EPS (basic, pre-except) (A$) 1.65 1.96 2.07 2.15
DuPont ROE (%) 18.3 20.5 19.7 18.3 EPS (diluted, pre-except) (A$) 1.65 1.96 2.07 2.15
Turnover (X) 0.6 0.6 0.5 0.5 EPS (basic, post-except) (A$) 1.65 1.96 2.07 2.15
Leverage (X) 1.7 1.7 1.6 1.6 EPS (diluted, post-except) (A$) 1.65 1.96 2.07 2.15
Gross cash invested (ex cash) (A$) 6,608.8 7,017.1 7,286.4 7,537.2 DPS (A$) 0.52 0.78 0.82 0.86
Average capital employed (A$) 5,071.1 5,394.9 5,295.3 5,212.4 Div. payout ratio (%) 31.5 39.8 39.6 40.1
BVPS (A$) 9.04 9.54 10.52 11.72
Balance Sheet (A$ mn) ___________________________________
Growth & Margins (%) ____________________________________ 9/22 9/23E 9/24E 9/25E
9/22 9/23E 9/24E 9/25E Cash & cash equivalents 3,021.3 3,361.8 3,965.5 4,810.8
Total revenue growth 17.7 7.8 (1.0) 1.5 Accounts receivable 842.2 1,221.7 1,209.3 1,227.6
EBITDA growth 20.4 11.6 2.8 2.7 Inventory 249.7 268.0 265.3 269.3
EPS growth 21.7 18.7 5.8 3.6 Other current assets 67.4 67.4 67.4 67.4
DPS growth 26.8 50.0 5.1 4.9 Total current assets 4,180.6 4,918.9 5,507.5 6,375.1
EBIT margin 28.6 29.6 30.9 31.3 Net PP&E 357.8 368.6 376.1 362.6
EBITDA margin 32.9 34.1 35.4 35.8 Net intangibles 3,891.2 3,817.8 3,744.4 3,671.1
Net income margin 19.7 21.3 22.4 22.8 Total investments 27.3 27.3 27.3 27.3
Other long-term assets 1,663.5 1,471.4 1,471.4 1,471.4
Price Performance _______________________________________ Total assets 10,120.4 10,604.1 11,126.8 11,907.5
ALL.AX (A$) S&P/ASX 200 Accounts payable 868.3 1,262.8 1,250.0 1,268.8
Short-term debt 99.9 99.9 99.9 99.9
40 8,500
Short-term lease liabilities -- -- -- --
38 8,000 Other current liabilities 348.4 224.6 228.2 238.8
Total current liabilities 1,316.6 1,587.3 1,578.1 1,607.5
36 7,500
Long-term debt 2,357.4 2,357.4 2,357.4 2,357.4
34 7,000 Long-term lease liabilities 271.8 271.8 271.8 271.8
32 6,500 Other long-term liabilities 151.9 151.9 151.9 151.9
Total long-term liabilities 2,781.1 2,781.1 2,781.1 2,781.1
30 6,000 Total liabilities 4,097.7 4,368.4 4,359.2 4,388.6

8fa44ad88c4744549a6329bd22c7ba5e
Preferred shares -- -- -- --
Jul-22 Oct-22 Jan-23 Apr-23
Total common equity 6,022.7 6,235.7 6,767.7 7,518.9
3m 6m 12m Minority interest -- -- -- --
Absolute 18.3% 11.1% 15.2% Total liabilities & equity 10,120.4 10,604.1 11,126.8 11,907.5
Rel. to the S&P/ASX 200 17.3% 0.6% 17.0% Net debt, adjusted (564.0) (904.5) (1,508.2) (2,353.5)
Source: FactSet. Price as of 12 Apr 2023 close.
Cash Flow (A$ mn) _______________________________________
9/22 9/23E 9/24E 9/25E
Net income 1,099.3 1,279.0 1,331.5 1,376.4
D&A add-back 243.0 270.3 267.6 271.6
Minority interest add-back -- -- -- --
Net (inc)/dec working capital (216.6) (3.4) 2.3 (3.4)
Other operating cash flow 120.3 (13.0) -- --
Cash flow from operations 1,246.0 1,533.0 1,601.4 1,644.7

Capital expenditures (334.4) (281.2) (275.1) (258.1)

Acquisitions -- -- -- --
Divestitures 28.7 -- -- --
Others -- -- -- --
Cash flow from investing (334.4) (281.2) (275.1) (258.1)

Repayment of lease liabilities -- -- -- --

Dividends paid (common & pref) (347.8) (423.3) (522.6) (541.2)
Inc/(dec) in debt (1,125.1) 0.0 0.0 --
Other financing cash flows 848.8 (488.0) (200.0) 0.0
Cash flow from financing (624.1) (911.3) (722.6) (541.2)
Total cash flow 570.9 340.5 603.7 845.3
Free cash flow 911.6 1,251.8 1,326.3 1,386.6

Source: Company data, Goldman Sachs Research estimates.

12 April 2023 2
Goldman Sachs Aristocrat Leisure (ALL.AX)

We expect Social casinos and new games to offer resilience in growth for
Pixel United

Gaming (Console, PC and Mobile games) was amongst the key entertainment
categories which benefited from the stay-at-home entertainment trend growing by
+26% over CY20 post 17% CAGR over the prior 5 years and subsequently slowing
down to +11.3%/-6.4% over CY21/22e per IDC, Goldman Sachs Global Investment
Research. Mobile gaming as a channel was stronger through this period growing at
+29%/16% over CY20/21 after ~21% CAGR over FY16-19.

Our global gaming team expects the mobile channel to grow by ~10% over CY22-25e
driven by both growth in number of players and game ARPU. Importantly, 31% of this
growth is expected to come from North America which remains the key market for ALL
with ~70% of revenue exposure coming from US+Canada.

Exhibit 1: Global Gaming Market - By Platform (GSe) Exhibit 2: Global Gaming Market - By Region (GSe)
$bn $bn

300 300

250 250
93
Global game market ($ bn)

Global game market ($ bn)

86
78
200 200 62 71
183 9
169 51 63 8
155 15
141 10 8 15
150 143 128 150 9 16 8 14
124 39 8 14 47
28 17 13 45
7 43
96 24 7 46 38 40
80 14 14 40
100 100 21 6 46
68 5 12 33 42 44
54 46 48 12 32 38 40
38 39 42 44 30 36 37
35 25
50 34 34 50 26 29
31 33 20 22 68 73
48 50 51 53 52 57 54 59 63
31 33 46 47 46 38 40
23 25 27 31
- 0
2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E

Console game software PC Mobile / Tablet North America Western Europe China Japan Korea Others

Source: IDC, Newzoo, CNG, MSCT, App Annie, Company data, Goldman Sachs Global Investment Source: IDC, Newzoo, Kadokawa, MSCT, App Annie, Company data, Goldman Sachs Global

8fa44ad88c4744549a6329bd22c7ba5e
Research Investment Research

Exhibit 3: Share of Pixel United’s revenue by country (CY22) Exhibit 4: ALL’s genres of focus remain those with strong longevity
and monetisation potential

70 18.0

16.0
USA 60
14.0
Australia 50
12.0
Canada
Months

40 10.0
Germany
US$

UK 30 8.0
France 6.0
20
Russia 4.0
Japan 10
2.0
NZ
0 0.0
Others Casino Casual RPG Strategy Puzzle Action

Average peak downloads Average peak revenue Revenue per download (RHS)

Source: SensorTower Source: SensorTower

In order to assess the outlook for ALL, we believe it is important to split the earnings’
outlook into 3 key buckets: 1/ The more resilient Social Casino segment, 2/ Sustenance
of RAID: Shadow Legends revenue and 3/ Outlook from new games

12 April 2023 3
Goldman Sachs Aristocrat Leisure (ALL.AX)

50% of the Pixel United portfolio revenue continues to see strong growth

c. 50% of the divisional revenue comes from the Social casino game portfolio where
ALL holds c. 14% market share within the genre. The Casino category has not seen a
similar level of rebasing like other Mobile gaming businesses and ALL’s Social casino
businesses have continued to grow ahead of the market. We view this part of the
portfolio as resilient and likely to continue seeing single digit growth. Additionally, the
Social casino genre has a longer longevity opposed to the average mobile game and
higher monetization per download ratio.

Additionally, unlike key peers like Playtika, ALL has not pulled back on new game
development in design and development spend. In fact, ALL has seen a step up in D&D
spend from 2022 to 10.6% of revenue from 7.9% in the prior year for Pixel United.
Overall, we see less concern regarding the outlook of the Social casino portfolio and
ALL’s potential to replace this portfolio with a quality portfolio in the longer term.

Exhibit 5: ALL’s Social casino games make up 14% of the genre Exhibit 6: ALL’s Social casino portfolio continues to outperform vs.
(Data as of CY22) category growth

80%

Pixel United 60%

14% Playtika LTD

40%
Netmarble Games Corp.
Light and Wonder 20%

DoubleUCasino
0%
Take-Two Interactive
PlayStudios -20%

Huuuge Games Sp. z o.o.

-40%
AppLovin Corp
Others

Casino ALL (aggregate)

Source: SensorTower Source: SensorTower

8fa44ad88c4744549a6329bd22c7ba5e
We factor in a decline in RAID’s outlook in line with comparable games in the
Squad RPG genre

For the rest of the portfolio, RPG, Strategy, Puzzle, Shooting genres we believe the
question of a replacement pipeline remains warranted, especially given the shorter
lifespan of these games. We specifically focus on RAID whose revenue made up 25%
of divisional revenue in FY22 and has been the centre of investor debates. While RAID
revenue was down -11% in 1H22, 6 month revenue per SensorTower for the half year
ended March 2023 has shown improved momentum at -4.5% with a positive March
(+2.5% pcp). Additionally, for the half year ended March, revenue was c. 26% higher
than its historical average and largely flat HoH. We do not believe that the game is in
decline yet.

However, given the relatively shorter lifespan of Squad RPG games when compared to
Social Casino games and the importance of RAID (c. 25% of revenue), we believe it is
prudent to peg earnings in line with performance of similar successful games with a
longer-term history. Per our analysis on the historical performance of key games, RAID’s
trends of revenue vs. downloads to its own average history to date is most similar to

12 April 2023 4
Goldman Sachs Aristocrat Leisure (ALL.AX)

the performance of Star Wars Galaxy of Heroes and Summoner’s war. We update our
earnings outlook to be conservative, in line with the decline as seen in Exhibit 9, i.e.
seeing c. 5% decline in revenue on a CAGR basis in the longer term. We note that this
implies further upside to our current estimates if the ongoing events and activations,
which have notably increased since the beginning of 1H23, succeed in prolonging the
growth in RAID.

Exhibit 7: Comparable scatter of Squad RPG games revenue vs. downloads performance in 10 half years

200%

150%
Revenue in Half 10 since launch vs. historical average

100%

50%

0%

-50%

-100%

-150%
-150% -100% -50% 0% 50% 100% 150%
Downloads in Half 10 since launch vs. historical average

Source: SensorTower

Exhibit 8: History of revenue of key Squad RPG games aligned to Exhibit 9: We peg our forecast on RAID per past performance of
launch date peer games in same genre

8fa44ad88c4744549a6329bd22c7ba5e
35 140
Millions
Millions

30
120
25
100
20
15 80
10 60
5
40
0
12 months
16 months
20 months
24 months
28 months
32 months
36 months
40 months
44 months
48 months
52 months
56 months
60 months
64 months
68 months
72 months
76 months
80 months
84 months
88 months
92 months
96 months
0 months
4 months
8 months

100 months
104 months

20

0
1H 2H 3H 4H 5H 6H 7H 8H 9H 10H 11H 12H 13H 14H
Summoners War Revenue ($) Star Wars: Galaxy of Heroes Revenue ($)
RAID Avg of peer games
RAID: Shadow Legends Revenue ($)

Source: SensorTower Source: SensorTower, Goldman Sachs Global Investment Research

We believe the criticisms of ALL’s new game release and success is unwarranted

Pixel United is a relatively new venture vs. land-based games for ALL but the track
record of performance by the games that were launched by the acquired studios have
been strong. ALL’s #1 position in the Social casino genre and the performance of RAID
are key evidence of this. While the pipeline was soft (both in terms of soft launches and
successful games) post 2020 and specifically the Ukraine war, we note that this is not

12 April 2023 5
Goldman Sachs Aristocrat Leisure (ALL.AX)

unique to Pixel United. Our analysis of SensorTower data on app launches by 14 global
publishers and Pixel United indicate that industry launches were softer for multiple
players.

Exhibit 10: Number of new app releases p.a. amongst key Game Publishers
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Tencent 腾讯 22 44 57 47 47 63 37 36 33 21
NetEase 网易 12 20 67 54 49 40 31 107 77 36
Activision Blizzard 8 16 14 8 4 1 2 1 0 2
Playrix 9 2 3 5 3 0 2 1 1 4
Take-two Entertainment 34 41 30 19 26 21 21 27 29 48
Playtika 11 8 4 10 8 1 7 1 3 3
Netmarble Games Corp. 39 65 39 20 15 12 16 19 7 9
NCSOFT 4 4 2 3 6 2 3 1 4 0
Supercell 1 1 1 1 1 0 1 1 3 0
miHoYo 米哈游 0 0 0 1 0 0 0 2 0 0
BANDAI NAMCO Entertainment 43 227 40 25 33 17 17 10 12 3
FunPlus Games 0 1 2 9 1 3 5 3 3 7
37GAMES 三七互娱 2 17 15 22 30 38 41 47 26 23
Lilith 莉莉丝 0 1 1 2 3 7 0 5 7 0
Total for the 14 players 185 447 275 226 226 205 183 261 205 156

Pixel United 147 118 106 112 109 91 9 7 0 7

The above count related to app releases and includes soft launches as well

Source: SensorTower

We remain encouraged by the pipeline of new launches. While early days on Paradise
Fortune and Nova Legends given that they remain in soft launch, ALL continues to focus
on the product categories with the best monetization features. Merge Gardens have
earned an average rating of 3.8 since October 2022 with >50% 5 star ratings vs. 4.3 for
Merge Dragons! (the biggest game in its genre) and 4.1 for EverMerge (ALL’s key game
in the genre). Importantly, usage statistics for Merge Gardens are comparable or better
than Merge Dragons for the longer session duration and daily time spent categories.

Additionally, unlike key peers like Playtika, ALL has not pulled back on new game
development in design and development spend. In fact, ALL has seen a step up from

8fa44ad88c4744549a6329bd22c7ba5e
2022 to 10.6% of revenue from 7.9% in the prior year.

Exhibit 11: ALL has stepped up the D&D spend in Pixel United into Exhibit 12: While early days, performance of ALL’s latest game is
FY22 comparable to other successful games in the same category

12% 35%

30%
10%
25%
8%
20%

6% 15%

10%
4%
5%
2%
0%
1s - 3s 4s - 10s 11s - 30s 31s - 60s 1m - 3m 3m - 10m 10m - 30m 30m - 60m 1h+
0%
EverMerge: Match 3 Puzzle Game Merge Gardens Merge Dragons!
2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024e 2025e

Source: Company data, Goldman Sachs Global Investment Research Source: SensorTower

We expect the D&D to result in other successful games coming live over time, albeit
not factoring in any as big as RAID. Given that D&D spend for PixelUnited was at c. 8%

12 April 2023 6
Goldman Sachs Aristocrat Leisure (ALL.AX)

in FY20/21 when the development pipeline was largely at a standstill due to

COVID/Ukraine war, we assume that 8% of D&D spend is a sustainable level for
sustaining the existing portfolio. We estimate the level spent above that as dedicated to
the new game development pipeline. Overall, we have c. US$286mn of revenue from
new games in 2032, which translates to post tax return of ~11% on the cumulative
D&D investment from FY22 for the step up beyond the maintenance spend. While we
lack sufficient history to compare track record (given that earnings include a number of
acquisitions), we view this a reasonable expectation given the talent and capabilities of
the studios that ALL owns in the space.

Exhibit 13: We expect new game pipeline to contribute c. Exhibit 14: We estimate c.8% of revenue as sustainable D&D for
US$286mn in revenue in the longer term for Pixel United existing pipeline with excess contributed towards development
pipeline

2500 250

2000 200

1500 150
US$mn

US$mn
1000 100

500 50

0 0
2022 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e 2031e 2032e 2022 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e 2031e 2032e

Social Casino Other Games (current) Other Games (new portfolio) D&D towards existing games D&D towards new games

Source: Company data, Goldman Sachs Global Investment Research Source: Company data, Goldman Sachs Global Investment Research

However, if these games aren’t successful, we note that majority of the costs in the
division are highly variable in nature. While platform fees and Royalty are payable on
sales, User Acquisition costs are incurred to drive sales and can be flexed to be lower if
returns are not satisfactory. Other costs and D&A are the only key non-variable cost
items in our view. While in our base case, we assume that Pixel United is able to attain

8fa44ad88c4744549a6329bd22c7ba5e
ongoing growth post 2023 with reasonable return from investments into new games in
the casual and RPG space. If the new games fail to deliver to our expectations, we see
c. 13% downside to our longer-term segment profit. This translates to A$2.2 per share,
well below the upside opportunity from the Anaxi division.

12 April 2023 7
Goldman Sachs Aristocrat Leisure (ALL.AX)

Anaxi: What is the upside?

We view Anaxi as a key growth opportunity for ALL, the potential upside for which is
underestimated in our view. Visible Alpha Consensus Data for Segment revenue and
profit is at ~A$123mn and ~A$29mn respectively in FY25e. Market skepticism on the
venture remains two-fold: 1/ delayed market entry and 2/ likely to be loss making for a
few years.

ALL’s iGaming venture albeit delayed vs. peers has made significant progress quickly
ALL first discussed the entry into the RMG market with the proposed acquisition of
Playtech Plc in October 2021. The deal was subsequently terminated on lack of
shareholder support in Feb 2022.

Exhibit 15: Timeline of ALL’s progress in the iGaming venture

Source: Goldman Sachs Global Investment Research

ALL announced the acquisition of Roxor gaming in September 2022 and subsequently
launched the Anaxi brand. While the move is delayed vs. most of its B2B peers, ALL has
gained strong traction in progress with 2 significant deals announced in 1QCY23 for B2B
distribution, with BetMGM (the largest iGaming player with c. 30% market share) and

8fa44ad88c4744549a6329bd22c7ba5e
Ceasers (~11% market share in CY22) both strong market shareholders in the iGaming
space. Additionally, ALL also announced during the FY22 results that they had received
regulatory approval for the first 8 games and was on-track to launch in 3 jurisdictions
early in CY23 in the US.

We view iSlots as the definitely Addressable market for ALL with further upside based
on regulation, product growth and global expansion...
Given that iGaming has multiple aspects to it, it is important to size the real addressable
market and what ALL can achieve. ALL aims to achieve a significant share in the North
American iGaming market with plans to penetrate at least 70% of regulated jurisdictions
over the next 5 years. Longer term, the ambitions could be extended towards
SportsBetting, iLottery and beyond North America. However, where we see most
credibility in ALL being able to achieve good progress despite the late start is RMG slots
due to the strength in existing content.

H2 Gambling Capital estimates the Global Gambling market revenue to be c. US$464bn

in CY22 and is expected to grow at 10.4% CAGR to CY27e. Gaming (Casino, EGM,

12 April 2023 8
Goldman Sachs Aristocrat Leisure (ALL.AX)

Bingo etc) is c. 51% of this and expected to grow at c. 6.7% with interactive gaming to
grow at 18% CAGR at the same time. During this period, Gaming in North America is
expected to grow by +6.2% with iGaming expected to see c. 32% growth (only
including existing states and the states where legislation has already been proposed for
iGaming in USA), becoming c. 4x the size of CY22 5 years down the line. Including other
potential states, H2 Gambling Capital estimates iGaming revenue to be c. 6.3x larger
than that in CY22. In view of this outlook, we do not believe that ALL is too late to
launch - especially given their existing strength in content and the latest sign-ups with
key customers like BetMGM and Ceasers.

Exhibit 16: Interactive gaming is expected to see global growth of Exhibit 17: Interactive Gaming in North America is expected to
18% CAGR over CY22-27e grow 4x in size by CY27 vs. CY22

300000 160

US$bn
140
250000
120
200000
100

150000 80

60
100000
40
50000
20

0 0

2023e
2024e
2025e
2026e
2027e
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Interactive Landbased Interactive Landbased Interactive Landbased
Betting Betting Gaming Gaming Lottery Lottery

CY22 CY27e Land-based Gaming - North America iGaming - North America

Source: H2 Gambling Capital Source: H2 Gambling Capital

Exhibit 18: The largest Delta of iGaming growth is expected to Exhibit 19: New Jersey, Michigan and Pennsylvania share majority
come from states where legalization is currently proposed of the iGaming revenue amongst the regulated states

Source: H2 Gambling Capital Source: American Gaming Association 8fa44ad88c4744549a6329bd22c7ba5e

Amongst the iGaming business, we expect ALL to focus on the iSlots business where
they already have a content advantage as confirmed by the demonstrated superiority in
land-based product and ongoing growth seen in Pixel United’s Social casino business.
Slots is expected to be c. 64% of total iGaming in North America implying an easy
addressable market size of A$16.8bn in revenue of the iGaming industry or c. A$1.2bn
for B2B content providers applying c. 7% take rate. Industry take rates, per feedback,
vary from low single digits to as high as 20% of revenue depending on the product type
and quality of content with take rates for slots being sub 10% of GGR. If we assume
that Visible Alpha Consensus Data revenue of A$123mn or US$90mn is purely focused

12 April 2023 9
Goldman Sachs Aristocrat Leisure (ALL.AX)

on this sub-segment, this implies that Anaxi takes c. 7.5% of the North American iSlots
market by FY25e assuming a similar take rate.

Exhibit 20: We view the Slots as the key addressable market for Exhibit 21: Europe and North America are the key markets for iSlots
ALL (Data as of CY27e) globally (Data as of CY27e)

180 5000
US$bn

160 4000

3000
140 iGambling RoW (ex-
Slots) 2000
Africa
120
Asia and the Middle East 1000
100 Europe
North America
80 North America iGaming - ex Slots Latin America and the Caribbean
iBetting+iLottery (additional potential North America
60 markets)
North America Oceania
iGaming - ex Slots
40 iSlots RoW

20 iSlots North America

(additional potential 1600
iSlots North America
0 markets) 1400
1200

Source: H2 Gambling Capital Source: H2 Gambling Capital

However, ALL has called out their ambitions as being more global (as opposed to just
NA) and also could include the broader iGaming market as opposed to pure iSlots.
While, they don’t currently own capabilities like player account management, live casino
etc, we expect these to come through potential acquisitions as opposed to building
internally.

...with very strong margin potential, especially in iSlots

The margin potential of B2B businesses like iSlots is higher than that of social casino as
well as land-based gaming businesses, depending on the success of the game. Per our
global team estimates during Evolution gaming’s acquisition of RMG slot content
businesses like NetEnt, Big Time Gaming and Nolimit City, the EBITDA margins of these
businesses were >75%. Broader igaming businesses which expand beyond iSlots like

8fa44ad88c4744549a6329bd22c7ba5e
Light & Wonder (the iGaming segment) and Evolution gaming had 31% and 69%
EBITDA margins respectively in the latest FY.

Given the level of uncertainties, we believe it is important to examine the potential

opportunity and upside from the iGaming venture.

n In our bear case, we expect that ALL takes 15% of the iSlots market in NA at a 6%
take rate of GGR (assuming no additional clip of ticket from Player account
management etc) and 5% market share of iSlots in Rest of the world with a similar
take rate.
n As a base case, we expect that both take rate (driven by additional ticket clip on
additional offerings) and market share can be higher as discussed in Exhibit 22 and
that ALL also takes a minor share in the rest of the iGaming businesses (iBetting,
iLottery, Live Casino etc) in the US, albeit at lower margins given higher cost
requirement.
n Under a bull case scenario, we assume ALL takes a fair share of iSlots in line with
their Land-based position and Social Casino market share leadership at a higher take
rate in view of the quality of games and that they also start becoming a meaningful

12 April 2023 10
Goldman Sachs Aristocrat Leisure (ALL.AX)

market share of the rest of the iGaming business globally, again at a lower margin of
40% vs. peers.

Exhibit 22: Scenario analysis: We expect the Bull case upside to be 2.5x that of our Base case assumptions
Summary of assumptions for the Bear, Bull and Base case
CY27 - iGaming market
Bear case Base case Bull case
Revenue case size (US$mn)
15% market share 6% 20% market share, 7% 30% market share,
iSlots North America 16809 151.3 take rate 235 take rate 504 10% take rate
10% probability, 15% 15% probability, 20% 20% probability, 30%
market share, 6% take market share, 7% take market share, 10%
iSlots North America (additional potential markets) 9546 8.6 rate 20 rate 57 take rate
5% market share, 6% 8% market share, 7% 15% market share,
iSlots RoW 16105 48.3 take rate 90 take rate 242 10% take rate
1% market share, 10% 5% market share, 15%
North America iGaming - ex Slots 9472 9.5 take rate 71 take rate
1% market share, 10% 5% market share, 15%
North America iGaming - ex Slots (additional potential markets) 5438 5.4 take rate 41 take rate
0.5% market share, 2% market share, 10%
North America iBetting+iLottery 24547 12.3 10% take rate 49 take rate
1% market share, 10%
iGambling RoW (ex-Slots) 87723 88 take rate
Total iGaming GGR 169640 208 373 1052

Segment margin 104.1 50% 167.7 45% 420.7 40%

Source: H2 Gambling Capital 2023, Goldman Sachs Global Investment Research

Overall, this implies that the upside from the iGaming optionality remains significant at
2.5x our Base case assumption vs. the Bear case scenario (i.e., only islots) being 0.6x of
the base case scenario.

Valuation implications: We value Anaxi at 14x segment profit, the median of key
profitable B2B and B2C iGaming businesses. On this basis, our current valuation (which
is based on FY29 earnings discounted by 5 years at WACC, implies a value of A$3.7 per
share from this business. Using a similar methodology, the Bull case scenario offers a
total implied value of A$9.1 per share or a further 14% upside to current price.

Balance sheet capacity for acquisitions: We look at 2.5x ND/EBITDA as the upper end
of leverage that the group’s balance sheet can tolerate for strategic acquisitions (peak
historical leverage was at 2.8x in 2015 and proforma leverage during proposed Playtech

8fa44ad88c4744549a6329bd22c7ba5e
acquisition was 2.5x). In our estimates, we expect ND/EBITDA in FY24 to be at -0.7x
(post c. A$1bn in Buy-back). Based on our FY24e EBITDA of A$2.1bn, this implies a
head room of c. A$6.7bn that could be used towards any strategic acquisitions. Even if
you assume that the group makes a return in line with WACC, this implies c. 29%
accretion to estimated NOPLAT.

12 April 2023 11
Goldman Sachs Aristocrat Leisure (ALL.AX)

Exhibit 23: We expect the FCF generation for ALL to remain strong Exhibit 24: ...resulting in a strengthening balance sheet despite the
despite higher D&D investments... A$1bn Buy-back

2000 3000 2.0

1500 2000 1.5

1.0
1000 1000
0.5
500 0
0.0
0 -1000
-0.5

-500 -2000 -1.0

-1000 -3000 -1.5

FY19a FY20a FY21a FY22a FY23e FY24e FY25e A$mn
FY19a FY20a FY21a FY22a FY23e FY24e FY25e x

FCF FCF ex Div Net debt Net debt/EBITDA (RHS)

Source: Company data, Goldman Sachs Global Investment Research Source: Company data, Goldman Sachs Global Investment Research

Overall, we believe that the market currently only factors in a very conservative
expectation of market penetration for the growing iGaming industry for ALL. More
importantly, even for the revenue that is considered, we believe that the market
assumption of c. 24% margins is extremely conservative when compared to key B2B
peers and that Anaxi offers significant upside potential in a rapidly growing market.

8fa44ad88c4744549a6329bd22c7ba5e

12 April 2023 12
Goldman Sachs Aristocrat Leisure (ALL.AX)

ALL currently trades at a significant discount vs. historical levels on both a

PE and PEG basis
While ALL has recently re-rated back to
Exhibit 25: ALL currently trades at 18.5x P/E, below
the historical average if 21.3x while offering +9% pre-FY22 results share price, ALL continues
EPS CAGR to trade at 18.5x P/E, below the longer-term
35 average of 21.3x. While the market focuses
30
on near term PEG, we believe that this
25

20
does not reflect the full upside from Anaxi
15 given that this remains a longer-term
10

5
venture.
0
11/10/2006
If we remove our valuation for Anaxi of
03/26/2008

08/10/2009

12/23/2010

05/08/2012

09/20/2013

02/04/2015

06/20/2016

11/02/2017

03/19/2019

07/31/2020

12/15/2021
12/31/1999
09/07/2000
05/16/2001
01/22/2002
09/30/2002
06/06/2003
02/12/2004
10/20/2004
06/28/2005
03/06/2006

07/19/2007

12/02/2008

04/16/2010

08/31/2011

01/14/2013

05/29/2014

10/13/2015

02/24/2017

07/11/2018

11/25/2019

04/08/2021

08/23/2022
A$2.3bn in EV (adjusted for D&D), ALL’s
current market cap implies 15.7x P/E for
Source: FactSet, Goldman Sachs Global Investment Research
rest of ALL’s portfolio which translates to
1.8x PEG, compared to historical averages of 21.3x and 2x respectively, both at
unwarranted discounts in our view.

We believe that ALL could re-rate strongly as the market gains more confidence on 1/
the outlook for the mobile gaming business and 2/ the potential for growth in Anaxi. At
current valuation levels, the market only factors in Anaxi as more of a free-optionality
that comes along with the more established gaming businesses in our view.

We revise our earnings outlook on the back of stronger outlook for the
group ex. ANZ

We update our earnings changes to reflect the deep-dive analysis on both Anaxi and

8fa44ad88c4744549a6329bd22c7ba5e
Pixel United divisions and commentary from the recent round table meeting. By
division:

n ANZ: We update earnings to reflect the weaker industry trends ahead of the NSW
elections resulting in sales revisions of c. -1.8%, weighted largely to 1H23.
Separately, we also lower the pace of margin ramp-up in FY24/25 resulting in ~-7%
reduction in ANZ earnings.
n Pixel United: We now update our earnings in line with the discussion in the prior
section factoring in a declining revenue curve for RAID and a reasonable return on
D&D on new game development. We also mark to market 1H23 revenue in line with
YTD data from SensorTower. Overall, we revise divisional earnings by 2-5% over
FY23-25e.
n Americas: Gaming GGR and forward slot surveys in the industry have been stronger
than anticipated. Additionally, we also factor in the positive feedback from casino
players on ALL’s new game performance. Overall, we update our earnings outlook by
2/6% over FY24/25e on ALL’s ongoing strong performance in the region.

12 April 2023 13
Goldman Sachs Aristocrat Leisure (ALL.AX)

n Anaxi: We move our earnings outlook on Anaxi to be based on our base case
scenario discussed earlier, i.e. based on the igaming sub-segments as opposed to
broad market shares earlier. More importantly, we also factor in stronger margins
based on those attained by relevant B2B peers. We now expect segment
contribution from Anaxi to be at A$45mn in FY25e.

Overall, we revise our segment contribution outlook for ALL by +1.6%/+5.5% over
FY24/25e. Additionally, we also update the Buy-back to take into consideration the
extension to A$1bn vs. A$500mn prior. We summarize our earnings changes in Exhibit
26

Exhibit 26: Overall, we update our NPAT outlook for ALL by +3%/+8% over FY24/25e
2022a 2023e 2024e FY25e % Growth CAGR
New Old New % change Old New % change Old New % change FY23 FY24 FY25 FY22-25e
Digital 2591.1 2619.0 2648.5 1.1% 2527.7 2569.0 1.6% 2458.8 2558.0 4.0% 2.2% -3.0% -0.4% -0.4%
America 2415.1 2711.8 2712.9 0.0% 2611.2 2661.1 1.9% 2528.0 2666.2 5.5% 12.3% -1.9% 0.2% 3.4%
ANZ 460.7 491.3 482.7 -1.8% 506.0 497.1 -1.8% 515.7 506.6 -1.8% 4.8% 3.0% 1.9% 3.2%
RoW 106.8 153.8 153.8 0.0% 170.9 170.9 0.0% 176.0 176.0 0.0% 44.0% 11.1% 3.0% 18.1%
Anaxi 14.9 9.7 -34.9% 46.3 48.5 4.9% 138.6 129.4 -6.6%
Total Revenues 5573.7 5990.8 6007.6 0.3% 5862.0 5946.6 1.4% 5817.2 6036.2 3.8% 7.8% -1.0% 1.5% 2.7%

Digital 852.7 871.0 884.1 1.5% 873.5 891.2 2.0% 858.4 897.7 4.6% 3.7% 0.8% 0.7% 1.7%
America 1350.8 1542.9 1543.5 0.0% 1494.2 1526.6 2.2% 1447.6 1534.6 6.0% 14.3% -1.1% 0.5% 4.3%
ANZ 157.1 162.1 159.3 -1.8% 197.3 183.9 -6.8% 201.1 187.4 -6.8% 1.4% 15.5% 1.9% 6.1%
RoW 39.1 53.8 53.8 0.0% 68.3 68.3 0.0% 79.2 79.2 0.0% 37.7% 27.0% 15.9% 26.5%
Anaxi 0.0 -8.1 nm 2.3 7.3 214.6% 13.9 45.3 226.7%
Total segment contribution 2399.7 2629.8 2632.7 0.1% 2635.7 2677.4 1.6% 2600.2 2744.3 5.5% 9.7% 1.7% 2.5% 4.6%

EBITA 1592.9 1776.9 1777.7 0.0% 1805.9 1837.6 1.8% 1777.4 1889.8 6.3% 11.6% 3.4% 2.8% 5.9%

PBT 1455.2 1708.5 1694.1 -0.8% 1735.6 1763.6 1.6% 1714.4 1823.1 6.3% 16.4% 4.1% 3.4% 7.8%
Tax -355.9 -435.7 -415.1 -4.7% -442.6 -432.1 -2.4% -437.2 -446.7 2.2% 16.6% 4.1% 3.4% 7.9%
NPAT 1000.9 1200.5 1205.7 0.4% 1220.7 1258.2 3.1% 1204.8 1303.0 8.1% 20.5% 4.4% 3.6% 9.2%
NPATA 1099.3 1272.8 1279.0 0.5% 1293.0 1331.5 3.0% 1277.2 1376.4 7.8% 16.4% 4.1% 3.4% 7.8%

Source: Company data, Goldman Sachs Global Investment Research

8fa44ad88c4744549a6329bd22c7ba5e

12 April 2023 14
Goldman Sachs Aristocrat Leisure (ALL.AX)

Valuation and Risks

We value ALL on a blended EV/EBIT based SOTP and DCF based valuation.

We update our multiples for Americas to 15.2x (prior 16.2x, now at 1x premium to the
ANZ business), our multiples for the Pixel united business to 12x EBIT (prior 13.5x, in
line with the peer group), and Anaxi to 14x (vs. 13.5x prior, based on updated growth
outlook and peer group). For Anaxi, given that the division is a relatively nascent venture
into a strongly growing space, we continue to use the FY29 Segment profit forecast and
discount it using WACC by 5 years to arrive at a more sustainable EBIT. We also update
the multiples on Design and Development and corporate to be a blended multiple of the
rest of the group at 14.5x. Overall, our SOTP valuation for ALL is at A$45.50 (vs. A$47.50
prior). Our assumptions for the DCF valuation remain unchanged and our revised
valuation is at A$45.80 (prior A$38.10, based on longer term earnings changes).

Exhibit 27: Our revised 12m Target Price on ALL is at A$45.70

Aristocrat Leisure
Sum of the Parts Valuation

Division Forecast EBIT EBIT Multiple

Valuation
FY24 $A mn x
ANZ 184 14.2 2,612
Americas 1,527 15.2 23,204
RoW 68 13.0 888
Pixel United 891 12.0 10,694
Anaxi 170 14.0 2,374
Design & Development (702) 14.0 (9,828)
Corporate (138) 14.0 (1,934)
2,000

TOTAL (A$ mn) 28,011

Less: Minority interest
Less Net Debt at 30 June 2024 1,180

NET VALUE (A$ mn) 29,192

Shares on issue (m): 642

Implied Value per Share (A$) $45.50

8fa44ad88c4744549a6329bd22c7ba5e
DCF

Key Inputs RfR MRP Beta Ke Kd WACC Valuation

3.5% 6.0% 1.00 9.5% 4.5% 8.2% $45.80

Target Price | Equally weighted DCF & EV/EBITDA SOTP $45.70

Source: Goldman Sachs Global Investment Research

Overall, our 12m Target Price on ALL is revised to A$45.70 (from A$42.80), offering an
upside of 20.4% and total potential return of 22.6%. ALL’s long-term outlook remains
strong, and the group remains a key diversified growth investment option. Additionally,
ALL also offers the strongest outlook potential return on our large cap consumer
segment. We add ALL to our ANZ Conviction List.

Key downside risks are:

n Weaker performance in the digital segment: Admittedly, the success of mobile

games and the longer-term trends are harder to predict. While we do expect greater
stability in Pixel United’s performance given the focus on non-casual genres and
base earnings on past trends of similar games, a weakness in this trend or lack of

12 April 2023 15
Goldman Sachs Aristocrat Leisure (ALL.AX)

success in new games could offer downside risk to earnings.

n Worse than expected take-up in iGaming growth: 8% of our group EV comes
from the valuation for Anaxi, which is a new venture in a highly competitive space.
We see downside risks to our earnings outlook if the take up in Anaxi’s growth is
slower than expected.
n Macro risks on land-based gaming: The land-based businesses offer downside
risks based on the macro outlook. We note an 82% correlation in US GGR (a key
driver for the participation model revenue) and Nominal GDP on a pre-COVID basis.
Based on current GS macro outlook, if this correlation was to hold, 3 year CAGR
outlook for gaming is likely to be c. 5% (vs. GSe for participation revenue model at
+4.6%. Outright sales (c. 22% of divisional revenue) are more cyclical with GFC and
COVID period declines being in mid double digits. However, the current industry slot
surveys for replacements remain healthy at 7.5% of fleet per annum.

Near term catalysts for ALL’s stock price performance include monthly data updates on
iGaming and Pixel United division, 1H23 results in mid-May and other land-based travel
and gaming data.

8fa44ad88c4744549a6329bd22c7ba5e

12 April 2023 16
Goldman Sachs Aristocrat Leisure (ALL.AX)

Appendix: Peer valuation

Exhibit 28: Summary of peer valuation for ALL
Basic information Company performance Valuation Other Financial metrics
Company Name GS Rating Target Last Close Upside / Market Cap Daily Traded Perf 3 year CAGR - forward P/E PEG EV/EBITDA EV/EBIT FY1
Stock Code Price Downside A$bn Value 1m 3m 6m Revenue EBIT EPS 3 yr avg FY1 FY2 FY2 3 yr avg FY1 FY2 3 yr avg FY1 FY2 Divi Yld ROE ROIC Leverage

ANZ Gaming Peers

Aristocrat Leisure ALL.AX Buy* 45.70 37.96 20.4% 25.4 49.3 4.2% 18.4% 11.1% 2.7% 5.9% 9.1% 27.9 19.4 18.3 2.0 15.6 11.67 10.88 20.8 13.4 12.5 2.1% 20.5% 25.2% -0.4
Tabcorp Holdings TAH.AX Sell 0.84 1.07 -21.1% 2.4 9.6 7.6% -3.2% 9.8% 2.2% 41.3% -215.0% 29.0 44.6 29.9 -0.1 10.5 7.18 6.05 19.5 24.5 16.0 1.3% 2.0% 2.6% 0.4
Jumbo Interactive Ltd JIN.AX Buy 15.50 13.77 12.6% 0.9 1.6 5.0% -8.9% 17.1% 17.4% 16.4% 17.2% 29.4 21.8 19.7 1.1 16.5 12.35 11.01 19.5 14.4 12.8 3.2% 38.9% 78.1% -0.8
PointsBet Holdings PBH.AX Neutral 1.62 1.20 35.0% 0.5 2.5 -17.8% -23.6% -43.1% 24.1% -16.9% -24.8% -1.4 -1.7 0.1 0.0% -62.3% -152.9% 1.2
Star Entertainment SGR.AX Neutral 1.60 1.38 15.9% 2.2 15.2 -5.8% -17.0% -42.4% 11.2% 87.6% -236.9% 48.5 19.3 52.4 -0.2 11.0 6.57 10.31 24.8 15.6 23.8 0.0% 2.8% 2.8% 1.9
Sky City Entertainment SKC.NZ Buy 3.30 2.43 35.8% 1.7 0.7 6.6% 2.5% 0.8% 18.7% 77.8% 162.4% 225.1 13.8 13.4 0.1 12.0 7.41 7.24 23.6 10.7 10.6 5.8% 8.4% 7.5% 1.6
Lottery Corp. TLC.AX Sell 3.90 5.21 -25.1% 11.6 23.4 0.0% 10.4% 29.3% 2.6% 3.7% 0.9% 28.9 31.6 31.8 36.6 16.6 18.14 18.04 19.3 21.1 21.0 3.0% 87.1% 18.6% 2.8

Median 11.2% 16.4% 0.9% 29.2 19.4 19.7 0.1 13.8 9.5 10.6 20.2 15.0 14.4 2.1% 8.4% 7.5% 1.2

Land based gaming peers + Casinos

Wynn Resorts Ltd. WYNN CS 107.98 18.8 268.6 -0.3% 10.8% 68.4% 23.7% -329.2% -199.7% 285.2 96.1 23.2 -0.1 13.5 14.05 10.20 27.9 26.3 16.1 0.3% -9.0% 11.3% 5.2
MGM Resorts International MGM CS 43.36 27.4 168.0 1.6% 11.6% 38.0% 7.1% -220.5% -186.6% 72.8 71.4 38.7 -0.2 12.7 10.71 9.84 50.3 41.1 36.2 0.0% 4.1% 11.0% 1.5
Las Vegas Sands Corp. LVS CS 55.93 63.7 269.5 -0.5% 4.0% 42.4% 44.6% -272.4% -243.8% 659.1 33.2 18.6 -0.1 22.4 16.03 11.75 47.3 26.9 15.7 0.1% 27.5% 14.5% 2.4
CHURCHILL DOWNS INC CHDN NC 253.51 14.2 41.9 6.0% 15.5% 32.9% 20.9% 43.9% 25.0% 36.9 23.1 17.5 0.7 15.8 13.06 10.86 34.5 19.5 15.7 0.3% 46.5% 10.1% 4.1
Light & Wonder Inc. LNW NC 60.22 8.1 30.6 4.9% 0.8% 30.4% 6.7% 34.6% -51.7% 57.1 39.3 22.7 -0.4 12.0 8.61 7.77 26.8 16.3 13.8 0.0% 11.5% 9.8% 2.7
International Game Technology Plc IGT NC 26.85 7.9 28.8 12.7% 10.5% 58.3% 2.0% 5.8% 1.8% 19.3 15.4 14.0 7.7 7.2 6.67 6.36 14.0 11.9 11.1 3.0% 20.5% 8.9% 3.1
Everi Holdings EVRI NC 16.55 2.1 10.8 -3.4% 8.9% -4.4% 4.8% 4.4% 1.3% 21.1 16.0 14.0 11.1 7.6 5.47 5.23 14.0 10.3 9.6 0.0% 28.7% 16.8% 1.5
Ainsworth Game Technology Ltd. AGI.AX NC 1.00 0.3 0.0 -2.4% 2.0% 17.6% 6.7% 8.2% 40.7% 112.3 12.0 13.0 0.3 9.1 5.90 5.97 34.5 10.1 9.9 0.0% 8.3% 9.5% -1.3
PLAYAGS INC AGS NC 6.61 0.4 3.0 0.9% 30.9% 16.4% 4.4% 18.7% -208.4% 95.1 110.8 29.8 -0.1 5.1 5.37 5.14 16.0 16.2 14.6 0.0% 3.8% 29.4% 3.5

Median 6.7% 5.8% -51.7% 72.8 33.2 18.6 -0.1 12.0 8.6 7.8 27.9 16.3 14.6 0.0% 11.5% 11.0% 2.7

iGaming peers
Flutter Entertainment Plc FLTRF.L Buy 134.00 152.10 -11.9% 49.9 77.4 7.9% 23.1% 49.4% 12.8% 23.4% 33.3% 38.6 0.6 0.4 0.0 19.0 31.15 22.18 26.2 42.8 27.9 0.0% 4.2% 3.7% 3.2
DraftKings Inc. DKNG NC 18.75 12.4 231.4 1.1% 47.5% 31.3% 24.6% -46.7% -50.9% -8.9 -17.4 0.3 -20.88 100.91 -8.3 -16.5 0.0% -123.2% -95.8% -0.6
Penn National Gaming Inc. PENN NC 29.79 8.2 75.5 5.3% -4.9% 1.2% 3.3% 9.4% 23.2% 27.1 18.5 15.4 0.7 13.9 15.81 11.09 18.3 13.4 12.9 0.0% 7.0% 6.9% 8.3
Playtech PTEC.L NC 537.00 3.0 2.5 -5.6% -0.9% 15.2% 4.2% 8.3% 7.9% 21.8 11.1 9.8 1.2 6.8 5.28 4.99 12.5 7.6 7.0 0.0% 9.5% 11.0% 0.5
Evolution Gaming Group EVOG.ST Buy 1545.00 1359.00 13.7% 41.8 674.9 9.3% 20.3% 54.0% 19.8% 21.3% 17.7% 37.9 282.4 250.7 14.2 30.5 19.58 16.12 34.0 21.7 17.7 0.2% 25.3% 32.1% -0.7
Rush Street Interactive, Inc. Class A RSI NC 3.0 0.3 n.a. n.a. -26.6% -17.1% 12.8% -165.8% -174.6% -13.1 372.9 -2.1 -4.85 4.60 -2.1 -12.3 0.0% -77.4% 59.8% 6.8

Median 12.8% 8.8% 12.8% 32.5 5.9 12.6 0.5 16.5 10.5 13.6 22.2 10.5 9.9 0.0% 5.6% 8.9% 1.8
13.77
Mobile Gaming
Activision Blizzard Inc. ATVI NR 85.09 101.2 480.8 9.1% 9.5% 15.4% 7.1% 8.9% 6.7% 24.1 24.2 22.1 3.3 16.8 16.09 14.12 17.5 16.6 14.6 0.6% 13.0% 27.1% -3.1
Electronic Arts Inc. EA Neutral 118.00 125.68 -6.1% 52.5 258.8 15.1% 1.3% 4.1% 5.1% 17.7% 0.5% 21.1 20.9 19.2 38.5 14.5 15.72 14.46 15.9 24.8 21.4 0.6% 22.8% 10.4% 0.4
Playtika PLTK Neutral 12.00 11.61 3.4% 6.4 11.4 27.3% 23.4% 14.8% 4.0% 12.4% 19.8% 26.6 14.4 11.4 0.6 9.1 6.82 5.35 13.9 10.6 8.1 0.0% -191.6% 30.3% 1.7
DoubleUGames Co., Ltd. 192080.KS NC 44,950.0 -100.0% 1.0 2138.6 4.5% -4.6% -4.0% 1.8% 0.6% -198.5% 11.6 6.6 6.2 0.0 4.5 2.82 2.68 5.2 2.9 2.8 1.6% 18.1% 32.0% -1.7
NCSOFT Corp. 036570.KS Buy 550000.0 368500.0 49.3% 9.2 42319.7 -6.9% -18.8% 5.6% 7.4% 22.3% 12.7% 31.2 16.5 16.3 1.3 20.6 11.20 10.88 22.3 13.3 13.0 1.8% 13.0% 11.8% -0.1
Krafton 259960.KS Sell 140000.0 185600.0 -24.6% 9.9 36280.8 14.6% 8.2% -3.1% -4.0% -6.7% -9.9% 163.3 17.2 20.9 -2.1 7.7 6.78 7.48 66.1 7.1 8.9 0.0% 9.8% 32.1% -4.3
Nexon 3659.T Sell 2300.00 3155.00 -27.1% 30.6 4799.5 3.1% 5.0% 15.6% 6.8% 10.8% 1.2% 11.6 31.1 25.4 20.8 4.5 17.38 13.93 5.2 18.4 14.6 0.3% 9.7% 18.6% -3.3

8fa44ad88c4744549a6329bd22c7ba5e
Ubisoft Entertainment SA UBIP.PA Neutral 22.00 23.91 -8.0% 5.0 18.5 5.1% 0.4% -15.6% 1.5% 5.7% 30.9% 22.5 -6.0 20.8 0.7 13.6 4.26 4.25 15.2 15.2 0.0% -32.9% -21.9% 0.8
Sciplay Corp. SCPL Buy 22.00 16.98 29.6% 3.2 4.6 6.2% 7.7% 34.0% 5.5% 10.8% 12.5% 45.9 18.4 14.7 1.2 38.0 8.63 7.02 80.8 10.4 8.3 0.0% 2.7% 47.6% -2.3

Median 5.1% 10.8% 6.7% 24.1 17.2 19.2 1.2 13.6 8.6 7.5 15.9 12.0 11.9 0.3% 9.8% 27.1% -1.7

CS: Coverage Suspended, NR: Not Rated, NA: Not Covered. * denotes on Regional Conviction List. For Not Covered companies, data is from FactSet. Priced as of close on 11 April 2023

Source: Company data, Goldman Sachs Global Investment Research, FactSet

12 April 2023 <7

Goldman Sachs Aristocrat Leisure (ALL.AX)

Disclosure Appendix
Reg AC
We, Darshana Nair Syama, Lisa Deng and James Leigh, hereby certify that all of the views expressed in this report accurately reflect our personal
views about the subject company or companies and its or their securities. We also certify that no part of our compensation was, is or will be, directly or
indirectly, related to the specific recommendations or views expressed in this report.
Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Goldman Sachs’ Global Investment Research division.

GS Factor Profile
The Goldman Sachs Factor Profile provides investment context for a stock by comparing key attributes to the market (i.e. our coverage universe) and its
sector peers. The four key attributes depicted are: Growth, Financial Returns, Multiple (e.g. valuation) and Integrated (a composite of Growth, Financial
Returns and Multiple). Growth, Financial Returns and Multiple are calculated by using normalized ranks for specific metrics for each stock. The
normalized ranks for the metrics are then averaged and converted into percentiles for the relevant attribute. The precise calculation of each metric may
vary depending on the fiscal year, industry and region, but the standard approach is as follows:
Growth is based on a stock’s forward-looking sales growth, EBITDA growth and EPS growth (for financial stocks, only EPS and sales growth), with a
higher percentile indicating a higher growth company. Financial Returns is based on a stock’s forward-looking ROE, ROCE and CROCI (for financial
stocks, only ROE), with a higher percentile indicating a company with higher financial returns. Multiple is based on a stock’s forward-looking P/E, P/B,
price/dividend (P/D), EV/EBITDA, EV/FCF and EV/Debt Adjusted Cash Flow (DACF) (for financial stocks, only P/E, P/B and P/D), with a higher percentile
indicating a stock trading at a higher multiple. The Integrated percentile is calculated as the average of the Growth percentile, Financial Returns
percentile and (100% - Multiple percentile).
Financial Returns and Multiple use the Goldman Sachs analyst forecasts at the fiscal year-end at least three quarters in the future. Growth uses inputs
for the fiscal year at least seven quarters in the future compared with the year at least three quarters in the future (on a per-share basis for all metrics).
For a more detailed description of how we calculate the GS Factor Profile, please contact your GS representative.

M&A Rank
Across our global coverage, we examine stocks using an M&A framework, considering both qualitative factors and quantitative factors (which may vary
across sectors and regions) to incorporate the potential that certain companies could be acquired. We then assign a M&A rank as a means of scoring
companies under our rated coverage from 1 to 3, with 1 representing high (30%-50%) probability of the company becoming an acquisition target, 2
representing medium (15%-30%) probability and 3 representing low (0%-15%) probability. For companies ranked 1 or 2, in line with our standard
departmental guidelines we incorporate an M&A component into our target price. M&A rank of 3 is considered immaterial and therefore does not
factor into our price target, and may or may not be discussed in research.

Quantum
Quantum is Goldman Sachs’ proprietary database providing access to detailed financial statement histories, forecasts and ratios. It can be used for
in-depth analysis of a single company, or to make comparisons between companies in different sectors and markets.

Disclosures
The rating(s) for Aristocrat Leisure is/are relative to the other companies in its/their coverage universe: Aristocrat Leisure, Breville Group, Coles
Group, Corporate Travel Management Ltd., Domino’s Pizza Enterprises, Endeavour Group, Flight Centre Travel Group, Harvey Norman Holdings, JB Hi-Fi
Ltd., Jumbo Interactive Ltd., Lottery Corp., Metcash Ltd., PointsBet Holdings, Premier Investments Ltd., Sky City Entertainment, Star Entertainment,
Super Retail Group, Tabcorp Holdings, Treasury Wine Estates Ltd., Webjet Ltd., Wesfarmers Ltd., Woolworths Group

8fa44ad88c4744549a6329bd22c7ba5e
Company-specific regulatory disclosures
The following disclosures relate to relationships between The Goldman Sachs Group, Inc. (with its affiliates, “Goldman Sachs”) and companies covered
by the Global Investment Research Division of Goldman Sachs and referred to in this research.
Goldman Sachs has received compensation for investment banking services in the past 12 months: Aristocrat Leisure (A$37.81)
Goldman Sachs expects to receive or intends to seek compensation for investment banking services in the next 3 months: Aristocrat Leisure (A$37.81)
Goldman Sachs had an investment banking services client relationship during the past 12 months with: Aristocrat Leisure (A$37.81)
Goldman Sachs had a non-investment banking securities-related services client relationship during the past 12 months with: Aristocrat Leisure
(A$37.81)
Goldman Sachs had a non-securities services client relationship during the past 12 months with: Aristocrat Leisure (A$37.81)
Goldman Sachs makes a market in the securities or derivatives thereof: Aristocrat Leisure (A$37.81)

Distribution of ratings/investment banking relationships

Goldman Sachs Investment Research global Equity coverage universe

Rating Distribution Investment Banking Relationships

Buy Hold Sell Buy Hold Sell
Global 48% 36% 16% 63% 56% 47%

As of April 1, 2023, Goldman Sachs Global Investment Research had investment ratings on 3,026 equity securities. Goldman Sachs assigns stocks as
Buys and Sells on various regional Investment Lists; stocks not so assigned are deemed Neutral. Such assignments equate to Buy, Hold and Sell for
the purposes of the above disclosure required by the FINRA Rules. See ‘Ratings, Coverage universe and related definitions’ below. The Investment
Banking Relationships chart reflects the percentage of subject companies within each rating category for whom Goldman Sachs has provided
investment banking services within the previous twelve months.

12 April 2023 18
Goldman Sachs Aristocrat Leisure (ALL.AX)

Price target and rating history chart(s)

Regulatory disclosures
Disclosures required by United States laws and regulations
See company-specific regulatory disclosures above for any of the following disclosures required as to companies referred to in this report: manager or
co-manager in a pending transaction; 1% or other ownership; compensation for certain services; types of client relationships; managed/co-managed
public offerings in prior periods; directorships; for equity securities, market making and/or specialist role. Goldman Sachs trades or may trade as a
principal in debt securities (or in related derivatives) of issuers discussed in this report.
The following are additional required disclosures: Ownership and material conflicts of interest: Goldman Sachs policy prohibits its analysts,
professionals reporting to analysts and members of their households from owning securities of any company in the analyst’s area of coverage.
Analyst compensation: Analysts are paid in part based on the profitability of Goldman Sachs, which includes investment banking revenues. Analyst
as officer or director: Goldman Sachs policy generally prohibits its analysts, persons reporting to analysts or members of their households from
serving as an officer, director or advisor of any company in the analyst’s area of coverage. Non-U.S. Analysts: Non-U.S. analysts may not be
associated persons of Goldman Sachs & Co. LLC and therefore may not be subject to FINRA Rule 2241 or FINRA Rule 2242 restrictions on
communications with subject company, public appearances and trading securities held by the analysts.
Distribution of ratings: See the distribution of ratings disclosure above. Price chart: See the price chart, with changes of ratings and price targets in
prior periods, above, or, if electronic format or if with respect to multiple companies which are the subject of this report, on the Goldman Sachs
website at https://www.gs.com/research/hedge.html.

Additional disclosures required under the laws and regulations of jurisdictions other than the United States
The following disclosures are those required by the jurisdiction indicated, except to the extent already made above pursuant to United States laws and
regulations. Australia: Goldman Sachs Australia Pty Ltd and its affiliates are not authorised deposit-taking institutions (as that term is defined in the
Banking Act 1959 (Cth)) in Australia and do not provide banking services, nor carry on a banking business, in Australia. This research, and any access to
it, is intended only for “wholesale clients” within the meaning of the Australian Corporations Act, unless otherwise agreed by Goldman Sachs. In

8fa44ad88c4744549a6329bd22c7ba5e
producing research reports, members of the Global Investment Research Division of Goldman Sachs Australia may attend site visits and other
meetings hosted by the companies and other entities which are the subject of its research reports. In some instances the costs of such site visits or
meetings may be met in part or in whole by the issuers concerned if Goldman Sachs Australia considers it is appropriate and reasonable in the specific
circumstances relating to the site visit or meeting. To the extent that the contents of this document contains any financial product advice, it is general
advice only and has been prepared by Goldman Sachs without taking into account a client’s objectives, financial situation or needs. A client should,
before acting on any such advice, consider the appropriateness of the advice having regard to the client’s own objectives, financial situation and needs.
A copy of certain Goldman Sachs Australia and New Zealand disclosure of interests and a copy of Goldman Sachs’ Australian Sell-Side Research
Independence Policy Statement are available at: https://www.goldmansachs.com/disclosures/australia-new-zealand/index.html. Brazil: Disclosure
information in relation to CVM Resolution n. 20 is available at https://www.gs.com/worldwide/brazil/area/gir/index.html. Where applicable, the
Brazil-registered analyst primarily responsible for the content of this research report, as defined in Article 20 of CVM Resolution n. 20, is the first author
named at the beginning of this report, unless indicated otherwise at the end of the text. Canada: This information is being provided to you for
information purposes only and is not, and under no circumstances should be construed as, an advertisement, offering or solicitation by Goldman Sachs
& Co. LLC for purchasers of securities in Canada to trade in any Canadian security. Goldman Sachs & Co. LLC is not registered as a dealer in any
jurisdiction in Canada under applicable Canadian securities laws and generally is not permitted to trade in Canadian securities and may be prohibited
from selling certain securities and products in certain jurisdictions in Canada. If you wish to trade in any Canadian securities or other products in
Canada please contact Goldman Sachs Canada Inc., an affiliate of The Goldman Sachs Group Inc., or another registered Canadian dealer. Hong Kong:
Further information on the securities of covered companies referred to in this research may be obtained on request from Goldman Sachs (Asia) L.L.C.
India: Further information on the subject company or companies referred to in this research may be obtained from Goldman Sachs (India) Securities
Private Limited, Research Analyst - SEBI Registration Number INH000001493, 951-A, Rational House, Appasaheb Marathe Marg, Prabhadevi, Mumbai
400 025, India, Corporate Identity Number U74140MH2006FTC160634, Phone +91 22 6616 9000, Fax +91 22 6616 9001. Goldman Sachs may
beneficially own 1% or more of the securities (as such term is defined in clause 2 (h) the Indian Securities Contracts (Regulation) Act, 1956) of the
subject company or companies referred to in this research report. Japan: See below. Korea: This research, and any access to it, is intended only for
“professional investors” within the meaning of the Financial Services and Capital Markets Act, unless otherwise agreed by Goldman Sachs. Further
information on the subject company or companies referred to in this research may be obtained from Goldman Sachs (Asia) L.L.C., Seoul Branch. New
Zealand: Goldman Sachs New Zealand Limited and its affiliates are neither “registered banks” nor “deposit takers” (as defined in the Reserve Bank of
New Zealand Act 1989) in New Zealand. This research, and any access to it, is intended for “wholesale clients” (as defined in the Financial Advisers Act
2008) unless otherwise agreed by Goldman Sachs. A copy of certain Goldman Sachs Australia and New Zealand disclosure of interests is available at:
https://www.goldmansachs.com/disclosures/australia-new-zealand/index.html. Russia: Research reports distributed in the Russian Federation are not
advertising as defined in the Russian legislation, but are information and analysis not having product promotion as their main purpose and do not
provide appraisal within the meaning of the Russian legislation on appraisal activity. Research reports do not constitute a personalized investment

12 April 2023 19
Goldman Sachs Aristocrat Leisure (ALL.AX)

recommendation as defined in Russian laws and regulations, are not addressed to a specific client, and are prepared without analyzing the financial
circumstances, investment profiles or risk profiles of clients. Goldman Sachs assumes no responsibility for any investment decisions that may be taken
by a client or any other person based on this research report. Singapore: Goldman Sachs (Singapore) Pte. (Company Number: 198602165W), which is
regulated by the Monetary Authority of Singapore, accepts legal responsibility for this research, and should be contacted with respect to any matters
arising from, or in connection with, this research. Taiwan: This material is for reference only and must not be reprinted without permission. Investors
should carefully consider their own investment risk. Investment results are the responsibility of the individual investor. United Kingdom: Persons who
would be categorized as retail clients in the United Kingdom, as such term is defined in the rules of the Financial Conduct Authority, should read this
research in conjunction with prior Goldman Sachs research on the covered companies referred to herein and should refer to the risk warnings that have
been sent to them by Goldman Sachs International. A copy of these risks warnings, and a glossary of certain financial terms used in this report, are
available from Goldman Sachs International on request.
European Union and United Kingdom: Disclosure information in relation to Article 6 (2) of the European Commission Delegated Regulation (EU)
(2016/958) supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council (including as that Delegated Regulation is
implemented into United Kingdom domestic law and regulation following the United Kingdom’s departure from the European Union and the European
Economic Area) with regard to regulatory technical standards for the technical arrangements for objective presentation of investment
recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of
conflicts of interest is available at https://www.gs.com/disclosures/europeanpolicy.html which states the European Policy for Managing Conflicts of
Interest in Connection with Investment Research.
Japan: Goldman Sachs Japan Co., Ltd. is a Financial Instrument Dealer registered with the Kanto Financial Bureau under registration number Kinsho
69, and a member of Japan Securities Dealers Association, Financial Futures Association of Japan and Type II Financial Instruments Firms Association.
Sales and purchase of equities are subject to commission pre-determined with clients plus consumption tax. See company-specific disclosures as to
any applicable disclosures required by Japanese stock exchanges, the Japanese Securities Dealers Association or the Japanese Securities Finance
Company.

Ratings, coverage universe and related definitions

Buy (B), Neutral (N), Sell (S) Analysts recommend stocks as Buys or Sells for inclusion on various regional Investment Lists. Being assigned a Buy or
Sell on an Investment List is determined by a stock’s total return potential relative to its coverage universe. Any stock not assigned as a Buy or a Sell on
an Investment List with an active rating (i.e., a stock that is not Rating Suspended, Not Rated, Coverage Suspended or Not Covered), is deemed
Neutral. Each region manages Regional Conviction lists, which are selected from Buy rated stocks on the respective region’s Investment lists and
represent investment recommendations focused on the size of the total return potential and/or the likelihood of the realization of the return across their
respective areas of coverage. The addition or removal of stocks from such Conviction lists are managed by the Investment Review Committee or other
designated committee in each respective region and do not represent a change in the analysts’ investment rating for such stocks.
Total return potential represents the upside or downside differential between the current share price and the price target, including all paid or
anticipated dividends, expected during the time horizon associated with the price target. Price targets are required for all covered stocks. The total
return potential, price target and associated time horizon are stated in each report adding or reiterating an Investment List membership.
Coverage Universe: A list of all stocks in each coverage universe is available by primary analyst, stock and coverage universe at
https://www.gs.com/research/hedge.html.
Not Rated (NR). The investment rating, target price and earnings estimates (where relevant) have been suspended pursuant to Goldman Sachs policy
when Goldman Sachs is acting in an advisory capacity in a merger or in a strategic transaction involving this company, when there are legal, regulatory
or policy constraints due to Goldman Sachs’ involvement in a transaction, and in certain other circumstances. Rating Suspended (RS). Goldman
Sachs Research has suspended the investment rating and price target for this stock, because there is not a sufficient fundamental basis for
determining an investment rating or target price. The previous investment rating and target price, if any, are no longer in effect for this stock and should
not be relied upon. Coverage Suspended (CS). Goldman Sachs has suspended coverage of this company. Not Covered (NC). Goldman Sachs does
not cover this company. Not Available or Not Applicable (NA). The information is not available for display or is not applicable. Not Meaningful
(NM). The information is not meaningful and is therefore excluded.

Global product; distributing entities

8fa44ad88c4744549a6329bd22c7ba5e
The Global Investment Research Division of Goldman Sachs produces and distributes research products for clients of Goldman Sachs on a global basis.
Analysts based in Goldman Sachs offices around the world produce research on industries and companies, and research on macroeconomics,
currencies, commodities and portfolio strategy. This research is disseminated in Australia by Goldman Sachs Australia Pty Ltd (ABN 21 006 797 897); in
Brazil by Goldman Sachs do Brasil Corretora de Títulos e Valores Mobiliários S.A.; Public Communication Channel Goldman Sachs Brazil: 0800 727 5764
and / or [email protected]. Available Weekdays (except holidays), from 9am to 6pm. Canal de Comunicação com o Público Goldman Sachs
Brasil: 0800 727 5764 e/ou [email protected]. Horário de funcionamento: segunda-feira à sexta-feira (exceto feriados), das 9h às 18h; in
Canada by Goldman Sachs & Co. LLC; in Hong Kong by Goldman Sachs (Asia) L.L.C.; in India by Goldman Sachs (India) Securities Private Ltd.; in Japan
by Goldman Sachs Japan Co., Ltd.; in the Republic of Korea by Goldman Sachs (Asia) L.L.C., Seoul Branch; in New Zealand by Goldman Sachs New
Zealand Limited; in Russia by OOO Goldman Sachs; in Singapore by Goldman Sachs (Singapore) Pte. (Company Number: 198602165W); and in the
United States of America by Goldman Sachs & Co. LLC. Goldman Sachs International has approved this research in connection with its distribution in
the United Kingdom.
Effective from the date of the United Kingdom’s departure from the European Union and the European Economic Area (“Brexit Day”) the following
information with respect to distributing entities will apply:
Goldman Sachs International (“GSI”), authorised by the Prudential Regulation Authority (“PRA”) and regulated by the Financial Conduct Authority
(“FCA”) and the PRA, has approved this research in connection with its distribution in the United Kingdom.
European Economic Area: GSI, authorised by the PRA and regulated by the FCA and the PRA, disseminates research in the following jurisdictions
within the European Economic Area: the Grand Duchy of Luxembourg, Italy, the Kingdom of Belgium, the Kingdom of Denmark, the Kingdom of
Norway, the Republic of Finland, the Republic of Cyprus and the Republic of Ireland; GS -Succursale de Paris (Paris branch) which, from Brexit Day, will
be authorised by the French Autorité de contrôle prudentiel et de resolution (“ACPR”) and regulated by the Autorité de contrôle prudentiel et de
resolution and the Autorité des marches financiers (“AMF”) disseminates research in France; GSI - Sucursal en España (Madrid branch) authorized in
Spain by the Comisión Nacional del Mercado de Valores disseminates research in the Kingdom of Spain; GSI - Sweden Bankfilial (Stockholm branch) is
authorized by the SFSA as a “third country branch” in accordance with Chapter 4, Section 4 of the Swedish Securities and Market Act (Sw. lag
(2007:528) om värdepappersmarknaden) disseminates research in the Kingdom of Sweden; Goldman Sachs Bank Europe SE (“GSBE”) is a credit
institution incorporated in Germany and, within the Single Supervisory Mechanism, subject to direct prudential supervision by the European Central
Bank and in other respects supervised by German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and
Deutsche Bundesbank and disseminates research in the Federal Republic of Germany and those jurisdictions within the European Economic Area
where GSI is not authorised to disseminate research and additionally, GSBE, Copenhagen Branch filial af GSBE, Tyskland, supervised by the Danish
Financial Authority disseminates research in the Kingdom of Denmark; GSBE - Sucursal en España (Madrid branch) subject (to a limited extent) to local

12 April 2023 20
Goldman Sachs Aristocrat Leisure (ALL.AX)

supervision by the Bank of Spain disseminates research in the Kingdom of Spain; GSBE - Succursale Italia (Milan branch) to the relevant applicable
extent, subject to local supervision by the Bank of Italy (Banca d’Italia) and the Italian Companies and Exchange Commission (Commissione Nazionale
per le Società e la Borsa “Consob”) disseminates research in Italy; GSBE - Succursale de Paris (Paris branch), supervised by the AMF and by the ACPR
disseminates research in France; and GSBE - Sweden Bankfilial (Stockholm branch), to a limited extent, subject to local supervision by the Swedish
Financial Supervisory Authority (Finansinpektionen) disseminates research in the Kingdom of Sweden.

General disclosures
This research is for our clients only. Other than disclosures relating to Goldman Sachs, this research is based on current public information that we
consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates and
forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as
appropriate, but various regulations may prevent us from doing so. Other than certain industry reports published on a periodic basis, the large majority
of reports are published at irregular intervals as appropriate in the analyst’s judgment.
Goldman Sachs conducts a global full-service, integrated investment banking, investment management, and brokerage business. We have investment
banking and other business relationships with a substantial percentage of the companies covered by our Global Investment Research Division.
Goldman Sachs & Co. LLC, the United States broker dealer, is a member of SIPC (https://www.sipc.org).
Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and principal
trading desks that reflect opinions that are contrary to the opinions expressed in this research. Our asset management area, principal trading desks and
investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this research.
The analysts named in this report may have from time to time discussed with our clients, including Goldman Sachs salespersons and traders, or may
discuss in this report, trading strategies that reference catalysts or events that may have a near-term impact on the market price of the equity securities
discussed in this report, which impact may be directionally counter to the analyst’s published price target expectations for such stocks. Any such
trading strategies are distinct from and do not affect the analyst’s fundamental equity rating for such stocks, which rating reflects a stock’s return
potential relative to its coverage universe as described herein.
We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act
as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The views attributed to third party presenters at Goldman Sachs arranged conferences, including individuals from other parts of Goldman Sachs, do not
necessarily reflect those of Global Investment Research and are not an official view of Goldman Sachs.
Any third party referenced herein, including any salespeople, traders and other professionals or members of their household, may have positions in the
products mentioned that are inconsistent with the views expressed by analysts named in this report.
This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be
illegal. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of
individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if
appropriate, seek professional advice, including tax advice. The price and value of investments referred to in this research and the income from them
may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.
Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments.
Certain transactions, including those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for all investors.
Investors should review current options and futures disclosure documents which are available from Goldman Sachs sales representatives or at
https://www.theocc.com/about/publications/character-risks.jsp and
https://www.fiadocumentation.org/fia/regulatory-disclosures_1/fia-uniform-futures-and-options-on-futures-risk-disclosures-booklet-pdf-version-2018.
Transaction costs may be significant in option strategies calling for multiple purchase and sales of options such as spreads. Supporting documentation
will be supplied upon request.
Differing Levels of Service provided by Global Investment Research: The level and types of services provided to you by the Global Investment
Research division of GS may vary as compared to that provided to internal and other external clients of GS, depending on various factors including your

8fa44ad88c4744549a6329bd22c7ba5e
individual preferences as to the frequency and manner of receiving communication, your risk profile and investment focus and perspective (e.g.,
marketwide, sector specific, long term, short term), the size and scope of your overall client relationship with GS, and legal and regulatory constraints.
As an example, certain clients may request to receive notifications when research on specific securities is published, and certain clients may request
that specific data underlying analysts’ fundamental analysis available on our internal client websites be delivered to them electronically through data
feeds or otherwise. No change to an analyst’s fundamental research views (e.g., ratings, price targets, or material changes to earnings estimates for
equity securities), will be communicated to any client prior to inclusion of such information in a research report broadly disseminated through electronic
publication to our internal client websites or through other means, as necessary, to all clients who are entitled to receive such reports.
All research reports are disseminated and available to all clients simultaneously through electronic publication to our internal client websites. Not all
research content is redistributed to our clients or available to third-party aggregators, nor is Goldman Sachs responsible for the redistribution of our
research by third party aggregators. For research, models or other data related to one or more securities, markets or asset classes (including related
services) that may be available to you, please contact your GS representative or go to https://research.gs.com.
Disclosure information is also available at https://www.gs.com/research/hedge.html or from Research Compliance, 200 West Street, New York, NY
10282.
© 2023 Goldman Sachs.
No part of this material may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written
consent of The Goldman Sachs Group, Inc.

12 April 2023 21