Embracing Change SmartTech 2010 Presentation Slide 1 Focusing @ Innovation The “You” in the center • Interactivity • Social Engagement • New Net-Devices SmartTech 2010 Presentation Slide 2 Focusing @ Interactivity “Power to the People” > 20hrs video uploaded to YouTube per minute > 13m articles available on Wikipedia > 4bn images hosted at Flickr SmartTech 2010 Presentation Slide 3 Focusing @ Social Engagement -78% of people trust others recommendations -14% of people trust advertisements 78% > 14% Source: Nielsen “Trust in Advertising” report, Oct. 2007 SmartTech 2010 Presentation Slide 4 Focusing @ New Net-Devices Momentum favors Apple iPhone & iTouch Ecosystem “Fastest User Growth in Consumer Technology History” Source: Apple, Nintendo, Sony, RIM, Katy Huberty, Morgan Stanley Research, Dec. 2009 SmartTech 2010 Presentation Slide 5 Focusing @ Regulating Gaming Regulated Gaming presents Unique and Innovative Opportunities SmartTech 2010 Presentation Slide 6 Evolution Drivers @ The Retail Networks Convergence Customer Value Introduce eGaming Optimize the Retail Chain Extend into Internet Existing lottery content Address new audience from .com to .country p2p models Live betting Poker, Bingo, Skill, Scratch, Casino Single View over Channels Reduce Complexity CRM Cross Product Uniformity More Games Online system Robustness Scalability Availability Remote Access Retail Access Retail Internet E-Gaming Convergence Evolutionary Stages SmartTech 2010 Presentation Slide 7 Evolution Drivers @ the .com Operators User Experience & Convergence Customer Value Customer Life Cycle Value Acquire eCustomers Internet Access Increase Life Cycle Value Introduce Cross Verticals Single View over Channels CRM Cross Product Outsource Back office Operators become marketing organizations Uniformity On line Marketing emerges Address new audience Cross Verticals Remote Access Traditional Gaming Customer Registration Optimize Payout E-Customers Initial Internet Operations Singular Operations On Line Marketing Cross Game Convergence Evolutionary Stages SmartTech 2010 Presentation Slide 8 WLA Members I well positioned Strengths Brand power & local knowledge Commitment to social responsibility Close cooperation with government Security and reliability Customer Confidence & trust Weaknesses Limited Online experience Balance retail network and retailers Winning Strategy Enable Regulation B2B Partnerships Focus on Marketing & Sales SmartTech 2010 Presentation Slide 9 .com operators I challenged Unwelcome for many governments Illegal / Grey History Past competition with concessionaires No previous tax payments / social contribution Steep Adaptation Curve Local Presence & Knowledge required Separation of local operation from global one Creating and managing local player base (liquidity) Interfacing with National Regulatory Bodies Obliged to Devise new business models (and margins) - local taxes, local investment, decentralization of operations Acquire Integration expertise and references Understand the “Retail & Land Based” Gaming model & design interfaces to it SmartTech 2010 Presentation Slide 10 Consumer Trends SmartTech 2010 Presentation Slide 11 Advertising, is the King Dead? Internet overtakes TV in advertising SmartTech 2010 Presentation Slide 12 Media, A fragmented mosaic Source: OPA and Nielsen Online December 2008, E-marketer SmartTech 2010 Presentation Slide 13 Gaming Spectrum, New models rising Lotteries .com Social Gaming Traditional .com players New generation Money Play Money Play Virtual Goods SmartTech 2010 Presentation Slide 14 intralotinteractive SmartTech 2010 Presentation Slide 15 Intralot Interactive, in brief Founded 2009 Consolidates On Line Assets of Intralot Group Aims at the Government Regulated On Line Markets Provides B2B & B2G Technology and Services Provides B2C Services in Regulated Markets Integrates best Partnerships Our Vision “ Inspiring the Player ” Our Mission “Shape the future of Gaming ” SmartTech 2010 Presentation Slide 16 Customer Centric, the product architecture Retail Social Venue Anonymous Play Registered Play Mobile iTV Interactive Play Internet PORTAL & BRANDS ACQUISITION RETENTION CUSTOMER PRODUCT TRANSACTION MANAGEMENT ANALYTICS Player Management System SPORTS POker CONTENT LIQUIDITY BINGO SKILL COMMUNITY Tools INSTANT ELECTRONIC AGENT LOTTERY NETWORK SmartTech 2010 Presentation Slide 17 Migration Roadmap, a 3+3 strategy for lotteries Type Registered Transactional Gaming Description Mobility Mobility Streaming Video Bet Acceptance, e-paymets Registered Loyalty Gaming Mobile Gaming Web.TV Transactions over Internet Subscription Gaming Subscription Play Loyalty Programmes Loyalty Cards Social Network Sites Info Sites Anonymous Gaming Stage Automation at the Retail Betting in the Retail Game Social Network Game Info Portal Retail-Self Service Retail Network SmartTech 2010 Presentation Slide 18 Success Story, Bilyoner Turkey SmartTech 2010 Presentation Slide 19 Success Story, Intralot Italia SmartTech 2010 Presentation Slide 20 thankyou George Zenzefilis General Director, INTRALOT Interactive zenzefilis@intralot.com SmartTech 2010 Presentation Slide 21