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Company Presentation May, 2010

Company Presentation May, 2010. Safe Harbour Statement . Disclaimer

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Company Presentation May, 2010

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  1. Company Presentation May, 2010

  2. Safe Harbour Statement Disclaimer This presentation contains forward-looking statements regarding future events and the future results of Lottomatica Group that are based on current expectations, estimates, forecasts, and projections about the industries in which Lottomatica operates, and the beliefs and assumptions of the management of Lottomatica. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management and competition are forward-looking in nature. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” and “estimates,” variations of such words, and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Therefore, Lottomatica’s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, the impact of competition, political and economic developments in the countries in which Lottomatica operates, and regulatory developments in Italy and internationally. Any forward-looking statements made by or on behalf of Lottomatica speak only as of the date they are made. Lottomatica does not undertake to update forward-looking statements to reflect any changes in Lottomatica’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

  3. Agenda Overview 2010 Guidance Financial Structure

  4. Overview

  5. Mission Lottomatica Group will be the leading commercial operator and provider of technology in the regulated worldwide gaming markets by delivering best-in-class products and services, with a commitment to highest levels of integrity, responsibility, and shareholder value creation.

  6. Group Structure M. Sala Group CEO S. Bortoli Group CFO GTECH Lottery J. Patel – CEO Gaming Solutions GTECH G2 Italian Operations R. Ascoli – Gen. Manager The only global gaming group in the world with in-house capabilities to deliver a full suite of products and services across the value chain

  7. Diversified Portfolio of Revenues A well-balanced and diversified revenue portfolio, by geography and by market segment Change in revenue mix driven by faster growing segments Stable, recurring business model – over 90% service revenues on long-term contracts Full Year 2007 - €1,661M Full Year 2009 - €2,177M +31%

  8. Overview of Q1 2010 • Solid performance by underlying business • Quarterly results as we expected • One-time events make comparisons challenging • Confident in delivering growth for full year • Scratch & Win success provides base and visibility into future

  9. Solid expansion opportunities USA Mega Millions and Powerball cross-selling unprecedented industry event Unlock potential of California Lottery through pay-out change Opportunities in Illinois following a business model change International Major 11-year contract with ONCE in Spain More than €500M revenues expected over the contract term Exploiting group synergies Italy 10,800 licenses for the new Video Lotteries in Italy New nine-year concession starting from November 2010 Leverage on Lottomatica’s number two position in the AWP market with above 16% market share Spielo will provide machines to be deployed in Italy, and is pursuing further opportunities

  10. Agenda 2010 Guidance

  11. Key Assumptions Italian Operations Gaming and Sports Betting: High single-digit revenue growth Lottery: S&W wagers comparable to prior year; lower Lotto wagers GTECH Lottery Low single-digit same store revenue growth with additional expected contribution from start-up Spanish business in second half Gaming Solutions and GTECH G2 Gaming Solutions: Targeting Italian Operations and related VLT opportunities and North America sales GTECH G2: Investing to develop WLA customer opportunities Cost Reduction Program Multi-year cost reduction program in place to generate €25-€30 million in savings for 2010, reducing our recurring operating costs Foreign Exchange: €1.00 = $1.40

  12. Capex • Licenses in Italy for S&W and VLT • Growth Capex for opportunities in Italy (VLT and Sports Betting) and Spain • Maintenance Capex consistent with prior year Figures in €M

  13. 2010 Guidance Foreign Exchange: €1.00 = $1.39 in ’09;€1.00 = $1.40 in ‘10

  14. Agenda Financial Structure

  15. Drivers of Net Financial Position • Continued healthy cash flow generation from operations of 143 million in 1Q’10 • NFP in-line with 2009, before impact of FX Figures in €M

  16. Gross Debt Maturity 5.375% Eurobond Hybrid • Gross Debt of 2.7 billion with average maturity of 4.5 years (1) • Committed to maintaining investment grade credit rating Figures in €M (1) Assuming the hybrid is called on March 31, 2016

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