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Mergers & Acquisitions Project Silver March, 2011 Raising Revenues for Good Causes GTECH Corporation Jaymin B. Patel President & Chief Executive Officer

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Mergers & Acquisitions Project Silver March, 2011. Raising Revenues for Good Causes. GTECH Corporation Jaymin B. Patel President & Chief Executive Officer. Agenda. Global Gaming Environment 2. Lottery Industry Growth Outlook 3. Illinois - Northstar Lottery Group 4. GTECH Customer First. - PowerPoint PPT Presentation

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Page 1: Raising Revenues for Good Causes

Mergers & Acquisitions

Project Silver

March, 2011

Raising Revenues for Good Causes

GTECH CorporationJaymin B. Patel

President & Chief Executive Officer

Page 2: Raising Revenues for Good Causes

2

1. Global Gaming Environment

2. Lottery Industry Growth Outlook

3. Illinois - Northstar Lottery Group

4. GTECH Customer First

Agenda

Page 3: Raising Revenues for Good Causes

 Global Gaming Environment

Global GGY(1) – (US$bn)

Source: GBGC report dated September 2010

Betting -0.1% +5.7%Casinos -0.6% +6.1%US Indian Gaming +0.3% +3.2%Gaming Machines -1.0% +2.0%Lotteries +2.9% +4.5%Other (Bingo etc.) -0.8% +5.4%

CAGR ‘07-’10

Total +0.5% +4.5%

CAGR‘10-’12

222238

268305 317

333362

382366 368 382

401

3

Page 4: Raising Revenues for Good Causes

4

• Organic GrowthTremendous opportunity

• Innovation Game innovation….prize structures National and multi-jurisdictional brands Collaboration is imperative

• New Channels Retail environment Interactive

 Lottery Industry Growth Outlook

Page 5: Raising Revenues for Good Causes

5

Key Drivers of Success

Each single lever impacts growth differently during each stage

of the business evolution

• Brand Values• Distinctive

Positioning• Awareness

• Pay Out• Price Points• Concept/

Mechanics

• Coverage• Sales Model• Services to POS

• Technology• Production

Process

COMMUNICATION PRODUCT INNOVATION

DISTRIBUTION STRENGTHENING

1 2 3SAFETY

4

GROWTH DRIVERS

Page 6: Raising Revenues for Good Causes

Northstar Lottery Group

Department of RevenueIL Lottery

IL LotteryAdvisory Board Board of Managers

Advertising OperationsTechnology DistributionLogistics Printing

80% 20%

Northstar Lottery Group

6

Page 7: Raising Revenues for Good Causes

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Northstar Lottery GroupLong Term Partner of the Illinois Lottery

Northstar Lottery Group

Page 8: Raising Revenues for Good Causes

8

SOCIAL RESPONSIBILITY

OPERATIONAL EFFICIENCY

Northstar Plan

Grow Sales to Over $4.5 BN by 2016

2,350

2011Forecast

RetailerNetwork

Online andInternet Portfolio

2016Business Plan

Instant Portfolio

4,511

+$2.2BN

5

4

3

2

1

$B

0

SUPPORTED BY RE-BRANDING PROGRAM

1,176

770260

Page 9: Raising Revenues for Good Causes

9

Northstar PlanBrand Transformation

Page 10: Raising Revenues for Good Causes

10

Our plan is to increase retail penetration from current 1,755 people per retailer to ~1,000 (industry best practice) in 2 years

Northstar Plan – Retail Expansion

Retailer Expansion

Page 11: Raising Revenues for Good Causes

11

Illinois Lottery Best in Class Performer

Our Plan

Source: La Fleur 2010; IL Business Plan; Camelot 2008/2009 Annual Report and Financial Statements

FY2009 YEAR 5 (FY 2016)

# 17 in USA

0.0

1.0

2.0

3.0

4.0

$5.0

MA

2.51

I taly

2.39

NY

2.05

NJ

1.93

GA

1.72

PA

1.39

MI

1.37

OH

1.18

UK

0.98

IL

0.96

USAverage

1.00

Best in class in USA

Net Income per Capita Benchmark 2009 and Business Plan Y5

0.0

1.0

2.0

3.0

4.0

$5.0

MA

2.88

I taly

2.75

NY

2.35

NJ

2.22

GA

1.97

IL

1.69

PA

1.60

MI

1.57

OH

1.35

UK

1.13

USAverage

1.15

Page 12: Raising Revenues for Good Causes

12

• More than 100 customers on 6 continents• 400,000+ points of sale globally• Global experience … best practices• Comprehensive diagnostics of current

business situation• Local knowledge and execution plans• Commitment to Lottery Innovation

GTECH Customer First

Page 13: Raising Revenues for Good Causes

Mergers & Acquisitions

Project Silver

March, 2011

13

Raising Revenues for Good Causes