Download - Raising Revenues for Good Causes
Mergers & Acquisitions
Project Silver
March, 2011
Raising Revenues for Good Causes
GTECH CorporationJaymin B. Patel
President & Chief Executive Officer
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1. Global Gaming Environment
2. Lottery Industry Growth Outlook
3. Illinois - Northstar Lottery Group
4. GTECH Customer First
Agenda
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
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• 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
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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
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GROWTH DRIVERS
Northstar Lottery Group
Department of RevenueIL Lottery
IL LotteryAdvisory Board Board of Managers
Advertising OperationsTechnology DistributionLogistics Printing
80% 20%
Northstar Lottery Group
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Northstar Lottery GroupLong Term Partner of the Illinois Lottery
Northstar Lottery Group
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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
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Northstar PlanBrand Transformation
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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
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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
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• 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
Mergers & Acquisitions
Project Silver
March, 2011
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Raising Revenues for Good Causes