Document

Transcription

Document

Information Document for
2008 WITSA Global ICT Excellence Awards
Table of Contents
Title
Pages
1. Company Overview
1.1 Company Profile
1.2 Company distinctions and awards
2 – 21
22 – 28
2. Products & Services Overview
2.1 Products & Services
29 – 35
2.2 Innovation and Research & Development
36 – 42
2.3 Marketing services
43 – 48
3. Financial Overview
Financial Overview
49 – 51
4. Corporate Social Responsibility
4.1 Social Contribution
52-54
4.2 Responsible Gaming
55-65
Page 1
1. Company Overview
1.1 Company Profile
INTRALOT, a public listed company, is the
leading supplier of integrated gaming and
transaction processing systems, innovative
game
content
management,
to
and
sports
betting
state-licensed
gaming
organizations worldwide. INTRALOT is a
“one-stop-shop”
which
offers
complete
solutions for every aspect of any gaming
and entertainment business.
Building efficient, socially responsible and
technologically advanced Lottery as well as
Betting operations has been INTRALOT’s
mission since the company’s foundation. Its
operational
experience
and
know-how
combined with its technological competency and self-containment has turned
INTRALOT into the world’s largest Fixed Odds Betting operator, handling the world’s
largest Sports Book covering bets in excess of $6 billion. INTRALOT is currently
operating Betting and / or other types of games under multiple licenses around the
world, through retail networks as well as via Internet and Mobile Telephony.
INTRALOT possesses a wide range of products
and services, extended know-how in betting
games, lotteries and video lottery, extensive
experience in sports betting games as well as
cutting edge technology, which give it the
competitive edge in contributing to the efficiency,
profitability and growth of its clients.
Committed to meeting customer requirements
and
performance
expectations
and
with
a
demonstrated ability to adapt to new markets and overcome technological and
cultural constraints, INTRALOT has acquired an excellent reputation in the global
Page 2
gaming sector. With presence in over than 40 countries, with more than 4,000
people and revenues of €791,4 m. for 2006, INTRALOT has established its presence
in all 5 continents.
INTRALOT was recently selected to be one of the 125 companies worldwide of the
newly founded Global Growth Companies Community of the World Economic Forum.
The top 125 new generation companies are expected to change the global competitive
landscape. The “New Champions” are businesses that were recognized as having
demonstrated a clear potential to become leaders in the global economy, based on
such factors as a company’s business model, growth record, leadership in their
industry and outstanding executive leadership, among others.
Today INTRALOT is a company with a presence in all 5 continents, ranking first in
Europe, holding a significant position on the market of South America, consolidating
its position in North America and rapidly expanding its business activity in Asia, Africa
and Oceania, where it has already secured significant contracts. The expansion in the
worldwide market is apparent considering the latest developments including projects
contracted to INTRALOT in Taiwan, Malaysia, South Africa, Italy, Australia, the award
of the exclusive license to operate the South Korea’s National Lottery, the new
contract with OPAP S.A., the contract for the operation of the All-Russia State Lottery,
the contract with New Mexico Lottery and the award for the operation of the Victoria
State Lottery (Australia), as well as the contract for the provision of an on-line gaming
system, including associated gaming products and support services for the South
Carolina Education Lottery.
As a provider or operator of games of chance, INTRALOT has signed contracts for a
wide range of products and applications (systems, terminals, alternative networks,
Video Lottery, television draw games, instant tickets, betting games etc.) in the U.S
(Nebraska, Montana, Idaho, New Mexico, South Carolina), Chile, Peru, Colombia,
Greece, Germany, Cyprus, Poland, Romania, Russia, Bulgaria, Turkey, Serbia &
Montenegro, FYROM, Moldova, Malta, the Philippines, Nigeria, New Zealand, Egypt,
Israel, Taiwan, Malaysia, S. Africa, Italy, Argentina, Australia (Western Australia and
Victoria).
Page 3
The company actively participates in the global gaming community and contributes
decisively in the future expansion of the sector.
A member of WLA (World Lottery Association), EL (European Lotteries), NASPL (North
American Association of State and Provincial Lotteries), CIBELAE (the Hispanic
association that covers S. America and the Iberian peninsula), GSA (Gaming
Standards
Association),
APLA
(Asia
Pacific
Lottery
Association)
and
actively
participates in the global gaming community and contributes decisively towards the
future development of the industry.
Page 4
Vision and Values
Our vision is to become the world leader in the gaming industry and consistently
offer increased value to our clients, shareholders and employees.
Our mission is to provide state-of-the-art integrated
transaction processing systems, promote innovative games
and offer value added services to gaming organizations
and non-lottery businesses worldwide, ensuring their
secure, reliable and profitable operation in a socially
responsible manner.
Our core values, the basis of our corporate culture that
has earned the trust and confidence of our customers,
our employees and the communities that we serve, include the following:
Passion for achieving challenging goals
Commitment to customer satisfaction, continuous improvement and growth
Flexibility in designing and developing innovative and effective solutions that
meet specific market requirements and customer needs
Excellence across the entire range of our business activities
Integrity
and
responsibility
towards
our
customers,
shareholders
and
employees, and support of the social role of state regulated lotteries.
Page 5
Organizational Structure
INTRALOT has adopted a modern structure and an effective management scheme, in
order to ensure the prompt decision-making, the fast realization of projects, the best
customers’ service and a guaranteed company growth.
Page 6
INTRALOT signs a contract with Lutrija Beograda for computerizing its gaming
operations.
INTRALOT installs an on-line system for the validation of scratch tickets for
Instant Lottery S.A.
1998
INTRALOT’s Totalizator System contracted by the Greek Organization of Horse
Racing (ODIE), begins operations with great success. The betting turnover of
ODIE increases by 62% within the first two years of operation of the new system,
reaching the amount of US $300 million.
INTRALOT introduces the compact, durable and ergonomically designed ATRIS
lottery terminals that aim to fulfill a lottery’s technical and low cost requirements.
Implementation and startup of operation for the on-line gaming system of Lutrija
Beograda implemented by INTRALOT.
1999
INTRALOT receives ISO 9001 certification, the most rigorous quality standard
available, for Design, Implementation, Installation, Maintenance, and Operation
of Information Technology Systems.
INTRALOT (as a member of a consortium which included INTRALOT
INTERNATIONAL. and BETTING COMPANY) signs a contract with OPAP for the
implementation and operation of Fixed Odds Betting in Greece. The games kick
off early 2000 and already in the first year, sales rocket close to US 1 billion.
INTRALOT starts trading its shares on the Athens Stock Exchange (ASE-shortcut
INLOT), with remarkable success.
INTRALOT signs contract for the provision and operation of an integrated Instant
Games management system in Greece.
INTRALOT, in Greece, deploys more than 5,000 terminals with inkjet printing
technology, one of the few cases worldwide where this technology was
successfully applied at this scale.
2000
INTRALOT is awarded a 5-year contract from the Greek Horse Racing
Organization (ODIE) for the technical support and maintenance of the Totalizator
System, which comprises 500 off- track and 250 on-track terminals.
INTRALOT, and its subsidiary Betting Company S.A., launch Fixed Odds Betting
operations in Greece. The fixed odds betting started with football and basketball
games from European and South American championships and becomes the
most successful betting operation worldwide.
Yugolot, INTRALOT’s subsidiary in Yugoslavia, is awarded a contract from its
strategic partner Telecom Serbia for the distribution of payphone cards in the
entire Serbian territory. The sales network of Yugolot and of its local partners
consists of 4,000 point of sales and Yugolot has undertaken with great success
the operation of all lottery games of the Belgrade Lottery.
The Romanian State Lottery (CNLR) awards INTRALOT a 13-year contract for the
development of a VSAT lottery retail network and for the introduction of new
games.
INTRALOT signs a 13-year contract with CNLR for the implementation and
operation of the largest Video lottery on-line network in Europe, consisting of up
to 10.000 VLTs with progressive jackpot capability.
Page 8
INTRALOT introduces VEGAS, a unique audiovisual display system for Lotteries.
This state-of-the-art Information Display System covers the needs of players
with real-time data and video information at the points of sale.
INTRALOT introduces CORONIS HE (High End), the first lottery terminal in the
industry with a 12.1” TFT touch screen display and fully modular design and
construction.
2001
INTRALOT’s subsidiary in Greece, Instant Lottery S.A, is awarded the
1st prize for its advertising campaign during the 11th Annual Festival of Greek
Advertisements in Athens.
INTRALOT becomes a platinum contributor of the World Lottery Association
(WLA).
INTRALOT develops LOTOS® WEB/WAP component, which is the external channel
interface that provides the ability to the players to place bets over the Internet
from a PC or using their mobile phones.
INTRALOT develops a Telephone Betting Application, providing the ability to play
lottery games over the phone.
Following an international tender, INTRALOT is awarded a 7-year contract for the
on-line gaming system of Polla Chilena (the state owned lottery organization of
Chile). The contract foresees also the launch of new generation games and Video
lottery, as well as the expansion of the system for games offered via the
Internet, mobile telephony and other alternative sales channels.
Instant Lottery S.A. (member of the INTRALOT Group and the exclusive operator
for the instant state lottery tickets in Greece) becomes a regular member in the
World Lottery Association (WLA).
INTRALOT’s Chairman Socrates Kokkalis is voted the most successful Greek
Business Leader and Manager, in the context of a global search for the world’s
most
respected
companies
and
businessmen
conducted
by
PriceWaterhouseCoopers.
INTRALOT introduces CORONIS CL (client), the first dedicated self-service
terminal in the industry.
2002
INTRALOT is awarded a 10-year contract from Sociedad Beneficencia Publica de
Jaen of Peru for the license of a lottery organization. The start up of the
operation commenced in 2003 and comprises games like Lotto, Instant Tickets,
Fixed Odds Betting games and TV games as well as the future development and
operation of Video Lotto. The games will be distributed to 1,000 points of sale.
INTRALOT signs an agreement with Eurofootbal, the Bulgarian operator of fixed
odds betting, for the acquisition of 49% of the company share capital. INTRALOT
holds also the option of acquiring another 2% of the company. Under this
agreement Eurofootball modernized its technological infrastructure by the
implementation of INTRALOT’s state of the art integrated on-line lottery system
and new generation CORONIS terminals and on-line operations commenced in
2003.
Page 9
The INTRACOM Group, to which INTRALOT Group is affiliated, founded the nonprofit Research and Education Society in Information Technologies (RESIT)
Corporation, dedicated to the promotion and the development of Science,
Technology, Research and Education and to the furthering of all forms of
specialized knowledge in the fields of Telecommunications and Information
Technology. In the framework of RESIT, Athens Information Technology (AIT)
Center is founded, offering programs of postgraduate studies in collaboration
with Carnegie Mellon University (CMU), Pittsburgh, USA.
Instant Lottery S.A., a subsidiary of INTRALOT, is certified by ISO 9001:2000
from ABS Quality Evaluations. The certification recognizes the company's long
experience and know-how in the quality operation of Instant lotteries and is an
additional asset for the strategic development of the company in the international
instant lottery market.
Instant Lottery S.A., a subsidiary of INTRALOT, becomes the eighth licensed
lottery in the world to receive the rigorous certification of the WLA Security
Control Standards.
As part of its plans for entering the US marketplace, INTRALOT S.A. establishes
“INTRALOT USA Inc.” based in Atlanta, Georgia and staffs it with lottery
executives and experts with excellent credentials and experience in the industry.
Fixed Odds sports betting games in Greece continue gaining in popularity since
their first introduction in January 2000. All games are operated on behalf of
OPAP, by the Betting Company, a member of the INTRALOT Group, which retains
for the 3rd consecutive year its position as the #1 sport betting operator
worldwide.
INTRALOT is ranked as the best performing stock of the Greek Stock Exchange
(between those included in the FTSE All Europe Index) as well as within the first
100 European stocks that demonstrated the best performance for the period
between March 2001- March 2002, according to a Financial Times survey. The
remarkable performance of INTRALOT’s shares reflects the market’s view of the
company, regarding the strong cash flow produced by its operations and the
company’s prospects in the international market.
Inteltek, a joint venture formed by INTRALOT Group and Cukorova Group, is
selected as the successful vendor, following an international tender, to supply
and operate an integrated on-line system and services to SPOR TOTO
Organization of Turkey. The 5 years agreement includes the launch of 8 sport
games, the installation of a network of up to 6,000 terminals throughout Turkey
and the use of alternative distribution channels such as mobile and fixed
telephony, Internet and digital T.V.
Yugolot, member of INTRALOT Group, is placed amongst the 300 most successful
enterprises in Serbia for the year 2001 and receives the “Certificate for
Profitability” by Globamark Business Research after a survey of more than
65,000 enterprises.
The Herald Tribune ranks INTRALOT among the listed firms that offer the highest
dividend yield together with Hyatt Regency, the Public Power Corporation, etc.
INTRALOT is awarded a 10-year contract with option for renewal from Narodna
Lutrijia, the State Lottery Organization in Serbia for the organization and
management of Fixed Odds Betting games.
Page 10
The new Fixed Odds Betting contracts of the INTRALOT Group in Moldova and
Serbia, along with the existing ones in Greece, Turkey and Bulgaria position
INTRALOT as the major provider of sports lotteries in Europe.
The Video lottery system of CNLR officially launches in April 2002. The
agreement provides for the installation of up to 10,000 on-line VLTs, connected
on-line real time with a central system, at CNLR retail outlets and additional
Points of Sale.
INTRALOT introduces CORONIS MP (Multi Purpose), the most versatile selfservice terminal in the lottery industry, able to run lottery, Video lottery, horse
race and sport betting applications. CORONIS MP is the only terminal in its
category that is equipped with stereo sound and an active subwoofer for the
reproduction of realistic sound effects during game play and the only terminal
having such a variety of embedded features like Smart Card functionality, Bar
Code reader, OMR, Thermal printer, Bill or Coin Validator, etc.
2003
Following the 10-year contract with “Sociedad Beneficencia Publica de Jaen” of
Peru for the license of a national lottery organization, INTRALOT establishes
INTRALOT de Peru, which undertakes the operation of all lottery games in the
entire country.
INTRALOT is awarded a 10-year contract from the Polish State Lottery “Polski
Monopol Loteryjny” for the operation of instant tickets. The remuneration of
INTRALOT is based on percentage of games’ turnover. Under the agreement
new type of instant tickets will be provided and the sales network will be
expanded and modernized.
INTRALOT is awarded a 6-year contract from the FYROM Lottery “Lotarija na
Makedonija” for the installation, support and operation of an integrated on-line
gaming system supporting Lotto, Instants, Bingo, Sports Betting and Video
lottery games.
The state lottery organization of Serbia “NARODNA LUTRIJA” awards a new 10year contract to INTRALOT for the operation of fixed odds betting via telephony.
The new agreement includes the installation of an integrated lottery phone
betting system, the development of the hardware and software and the
promotion and advertising of betting via new media.
INTRALOT is awarded ISO (International Organisation for Standardization)
9001:2000 certification, which is the latest standard of the ISO 9000 family. The
ISO certification provides a tested framework that guarantees a systematic
approach in the process management, as well as conforming to the customers’
expectations.
In Turkey the Inteltek consortium, in which INTRALOT and Turkcell participate,
successfully launches operations with two games and 1,000 terminals for
Sportoto, the National Football Prognostics Organisation of Turkey.
A new 6-year contract is awarded to INTRALOT from the state lottery
organization of Chile “Polla Chilena de Beneficencia” for the supply and
management of lottery games via alternative sale channels in the entire country.
The new agreement has a 2-year renewal option and includes the design, supply,
installation, operation and support of an integrated platform, which will provide
and manage the lottery games through Internet, call centres and mobile phones.
Page 11
INTRALOT announces the establishment of Bilyoner Interaktif Hizmetler A.S, a
new subsidiary in Turkey. Libero SA is a joint company of INTRALOT and Turkcell
group, the leading mobile operator of Turkey. The new company’s main activity
is to provide sports betting services via alternative channels: mobile phones, call
centres, digital TV and the Internet.
LOTERIA MOLDOVEI, a member of the INTRALOT Group, is granted a license
from the Ministry of Finance of Moldova for the organization and management of
Fixed Odds Betting games. The contract provided for upgrading of the system
with high-end technology from INTRALOT. All necessary services such as risk
management, odds compilation, marketing support and training to the lottery
were provided by the Betting Company, a subsidiary company of INTRALOT.
LOTERIA MOLDOVEI, member of the INTRALOT Group, signs an important
agreement with the mobile operator VOXTEL, subsidiary of France Telecom, for
the supply of Lotto games via SMS.
INTRALOT de Chile, subsidiary of INTRALOT SA, signs a 6-year contract with the
state lottery organization of Chile “Polla Chilena de Beneficencia” for the
organisation of Fixed Odds Betting games. The agreement includes operational
services, such as odds compiling, risk management and marketing, as well as
consulting services on the promotion of the games.
INTRALOT acquires a 100% stake of the Peruvian gaming operator Tektron SA
from IBM Peru (holder of a 50% stake) and Peruvian Media and Distribution
companies (holders of the remaining 50%). Tektron has been operating in Peru
for the previous 8 years and holds a leading position in the lottery and instant
ticket market, with annual sales of USD 30 million.
INTRALOT Inc. announces the successful execution of its On-Line Gaming System
Contract with the Nebraska Lottery. INTRALOT installed its LOTOS™ On-line
gaming computer system and provided approximately 1,000 of its CORONIS fullfunction terminals at retailer locations across the state.
INTRALOT Group signs a 10-year contract with the Romanian State Lottery CNLR
to introduce fixed odds betting in the country, increasing the range of successful
games already offered in Romania. The company will undertake the product
design, events selection, odds compilation and risk management. Moreover, it
will participate in developing the games’ marketing and promotional strategy in
cooperation with the State Lottery.
INTRALOT signs a Contract with the Greek Horse Racing Organization (ODIE) for
the implementation, installation, maintenance and technical support of new horse
betting games.
The contract between INTRALOT-ODIE for the operation extends for an additional
four years.
2004
Following an international tender, INTRALOT signs a 5-year contract with the
German State Lottery of Schleswig-Holstein for the supply of 200 (with an option
for additional 200 units) state-of-the-art CORONIS TC terminals plus
maintenance services.
INTRALOT, following an international tender is awarded the exclusive
8-year license to operate all State Lottery games in Malta. For this project
INTRALOT has established MALTCO LOTTERIES LIMITED, in which it owns a 73%
stake, while local partners own the remaining 27%. The license operation fee
reaches the amount of €18.5m.
Page 12
INTRALOT, following an international tender, signs a contract with ETESA for the
exclusive license regarding the operation of sports lotteries in Colombia for 5
years with a 2.5year extension option.
The scope of the project includes establishment of a sales network of up to 5,000
points-of-sale across the country. Operations to commence during the second
quarter 2005 using the LOTOS online lottery platform. Moreover, INTRALOT, via
an agreement with DIMAYOR (Football Federation of Colombia), will render a
percentage of the revenues from the operation of the Toto games.
INTRALOT enters into an agreement with the Cypriot company Royal Highgate
Ltd for the supply of a computerized integrated lottery system, consisting of the
Central Computers, one hundred (100) Coronis HE terminals, LOTOS®, the fixed
odds betting Game “1000” Software, Installation, Startup and Training Services,
as well as Software Maintenance and Technical Support Services.
INTRALOT enters into an agreement to undertake the operation of on-line lottery
games in Moscow in cooperation with the Malaysian group Tanjong (owner of
Pan-Malaysian Pools). The two companies will assume the management of the
project and will participate with 49% in Yuvenga, the company that has the
exclusive license for on-line lottery games of the "Moscow Olympic Lottery" in the
broader area of Moscow. The project plan provides for the gradual installation of
CORONIS terminals in 3,000 points of sale, as well as the installation of the
LOTOS software platform for the operation of numerical games, KENO, Bingo and
instant games.
2005
INTRALOT and the HILTON Group, through its betting and gaming subsidiary
Ladbrokes, establishes a global strategic alliance incorporating the lottery,
betting, casino and gaming markets. INTRALOT, which is a state-of-the-art
technology provider for lotteries, with acknowledged strengths in operating a
wide variety of games (numerical, instant, video lottery, betting, etc) for state
licensed lotteries will join forces with the HILTON Group, which has an extensive
global business network in the leisure industry. The alliance will offer extensive
synergies for both companies and plans to pursue further opportunities in the
global gaming market, cooperate on projects concerning State Lottery
privatizations, and participate in tenders issued by state and private lotteries.
INTRALOT supports the “Médicins du Monde” (Doctors of the World) on their
delegation
to
SE
Asia
aiding
the
victims
of
the
tsunami-hit.
The company has promptly responded to this tragedy with a contribution in
medical equipment and medicines for the cure of the injured people and the
prevention of epidemic outbreaks.
INTRALOT signs a six-year contract with the National Lottery Organization of
FYROM regarding the organization, operation and management of fixed-odds
betting games. The services that INTRALOT will provide include the selection of
athletic events to be included in the betting program offered to players, the
setting of odds, the monitoring of transactions on a real-time basis and the
management of risk in order for the game to operate effectively and profitably.
INTRALOT de Peru, a member of INTRALOT Group signs a 5-year contract with
the Football Federation of Peru (ADFP) regarding the operation of fixed odds
betting games.
The contract has a renewal option for 2 years. INTRALOT de Peru is the market
leader of the lottery games in Peru, having an on-line sales network of 1.700
points-of-sale in the country and offering a wide range of games (numerical and
instant).
Page 13
INTRALOT by signing its first contract in Oceania expands its operations to 5
continents. INTRALOT New Zealand Limited, a member of INTRALOT Group,
following an international procurement, signs a contract with the Department of
Internal Affairs (DIA) of New Zealand for the provision and operation of the
electronic monitoring system (EMS) for all gaming machines in pubs and clubs.
The contract’s duration is 7 years with an 18month extension option and a
minimum 5-year renewal option. INTRALOT will install and operate the On-line
central system based on V-LOTOS platform which will administrate more than
20.000 already installed terminals in approximately 1.800 POS throughout New
Zealand (one of the largest installations worldwide).
INTRALOT’s CEO Mr. Constantinos Antonopoulos, receives the “Manager of the
Year” award, at a ceremony held in London, during the Euromoney Conference:
“INVEST IN GREECE 2005”.
INTRALOT is honoured with the award of International Business Activity for 2004,
from the Athens Chamber of Commerce and Industry. This award is attributed to
companies with successful business activity in the global market.
INTRALOT System goes live in Nigeria. The whole network covers 600 terminals
of mobile technology, with LOTOS central system as a base platform, both
provided, implemented and supported by INTRALOT. The new system supports
the integration of new games and alternative distribution networks, including
fixed and mobile telephony, Internet and digital TV. This project marks the entry
of INTRALOT in Africa and sets the base for further expansion in the continent.
INTRALOT, through its subsidiaries POLLOT and INTRALOT INTERNATIONAL,
obtains the control of Totolotek, a company that manages and operates FixedOdds Sports Betting in Poland. Totolotek has a network of about 400 agencies.
INTRALOT signs an agreement with the Egyptian Post Offices for the
development of a modern National Network for the provision of services such as
bill payment, pension collection, ticket issuing, etc and organizing of games.
INTRALOT shall install and operate a Central System with its LOTOS platform, the
telecommunication network and the terminals, offering services to at least 3.400
points of sales (POS) of the Egyptian Territory and possible to new POSs further
to the expansion of the National Network.
INTRALOT signs a supply contract with Mifal Hapayis, the National Lottery of
Israel, for the design, development, procurement and maintenance of a new
interactive system called “E-Pais”. With this new system and the new gaming
channels, the national lottery foresees to the boost of the current sales and the
growth of its contribution to the Israeli community.
INTRALOT signs a 7-year contract, with three one-year extension options, with
the Montana Lottery for the implementation of a lottery system and terminal
network in the Territory of Montana. The Lottery of Montana enthusiastically
chose INTRALOT for the implementation of this project as it will contribute to
great savings for the State.
INTRALOT signs an agreement with ODIE for the modification of 150 on track
terminals to off-track terminals for the further network development.
INTRALOT and ODIE sign a 2-year contract with the 2-year extension options for
the maintenance and technical support of the Totalizator System.
Page 14
2006
INTRALOT, through a joint venture, is selected as the preferred bidder of
ChinaTrust Commercial Bank in Taiwan (CTCB), a member of Chinatrust Financial
Holding Company, which has received the license from the government to
operate the Public Welfare Lottery.
The project entails the supply, implementation and maintenance of the core
gaming system, software and equipment. INTRALOT will install and support its
LOTOS™ O/S On-line and Instant Gaming Computer System on the IBM AIX
platform, and will provide 8,000 CORONIS full-function terminals in retailer
locations across the region. The project duration is seven (7) years.
INTRALOT USA receives a Notice of Intent to Award a contract for the provision
of
an
on-line
lottery
system
from
the
Idaho
Lottery.
The conversion to the new system will commence February 19th, 2007.
The contract is for seven years with option for renewal.
INTRALOT USA successfully launches the operation of its second on-line gaming
system in the USA for the Montana State Lottery and is now fully operational.
INTRALOT is awarded a new contract with Pacific On-Line which operates games
in Southern Philippines on behalf of the state gaming organization Philippines
Charity Sweepstake Office (PCSO). The contract is for 7 years.
The project includes the procurement, installation and support of an advanced,
integrated network which will be comprised of up to 900 terminals, the core
operating system, LOTOS™ and the necessary satellite telecommunications
infrastructure. When complete, the system will provide retailers with a flawless
solution that will ultimately increase sales of all 6 PSCO’s games.
INTRALOT signs an 8-year contract with “Magnum Corporation Berhad”, the
leading lottery organization in Malaysia, for the procurement, installation and
support of an integrated lottery system including 2.200 CORONIS Terminals,
LOTOS™ O/S On-line Gaming Computer System on the IBM AIX platform and a
state-of-the-art leased line telecommunications infrastructure. In addition to its
standard games management features the system incorporates extended
functionality such as a customer promotion programme.
INTRALOT’s USA President and CEO, Tom Little, receives the prestigious “Lottery
Industry Hall of Fame Award” for his 30-plus years of significant contributions to
the lottery industry.
INTRALOT concludes an agreement with Hamburg’s State Lottery “NORDWEST
LOTTO UND TOTO HAMBURG”. The agreement involves the customization and
installation of LOTOS along with the POS terminal software. The conversion to
the new LOTOS system will commence within the first semester of 2007.
INTRALOT’S innovative B-On platform wins a “Lottery products of the Year”
award for 2006, from Public Gaming Research Institute. The awards were judged
by Lottery Directors and presented on July 12th during PGRI’s EXPO/ILAC
Conference in Las Vegas. INTRALOT’s fully integrated B-On platform expands
traditionally lottery sales channels by supporting alternative sales networks and
offering a variety of games with enhanced, user-friendly features.
Following an international tender and a competitive process, INTRALOT Australia
Pty Ltd., 100% owned by INTRALOT S.A., has been announced by Lotterywest,
the State Lottery of Western Australia, as the preferred bidder for the provision
of the new Lottery’s Gaming Operations Solution, along with the necessary
maintenance and support services. The project entails the supply and
implementation as well as the maintenance and support of the integrated lottery
system, based on INTRALOT’s open architecture LOTOS™ O/S and CORONIS
family of terminals.
Page 15
Following an international tender and through a joint venture INTRALOT, is
awarded a 7-year exclusive license with a 1 year extension option to be the new
operator of the national lottery in South Africa.
INTRALOT will provide the LOTOSTM O/S central system, including hardware and
software along with the Games application software, an Independent Verification
System and drawing machines. The sales network will be equipped with
INTRALOT’s state of the art CORONIS High End Compact terminals and the
supplementary terminals CORONIS IPT. Furthermore, INTRALOT will provide
maintenance services for the terminals and the data center, start-up services and
on-site support.
After 14 years of worldwide leadership in the Lottery industry, INTRALOT
changes its corporate logo to more accurately reflect the Company’s evolution
and its ongoing strategic goals. The new INTRALOT logo symbolizes the
company’s “21st century personality” as well as its broad international success. It
is a straightforward depiction that expresses not only the company it represents
but also INTRALOT’s core corporate values.
Morgan Stanley’s Strategy team includes INTRALOT in its top-50 picks amongst
European stocks. Companies were screened on EV/EBITDA multiples and ROCE
(return on capital employed) ratios, as a financial theory says that these two
criteria are guidelines for future stock out-performance. It is noteworthy to
mention that INTRALOT is the only company operating in the gaming sector to be
included on this list.
INTRALOT’s CEO Mr. Antonopoulos receives the “Best Innovative Manager” and
“Best Global Oriented Manager” awards, while INTRALOT receives the “Best
Company of 2006” award, during the Euromoney Conference held in Greece.
In addition, INTRALOT receives awards in the categories
Innovation”, “Internationalisation” and “Investor Relations”.
of
“Business
INTRALOT is one of the sponsors of the World Economic Forum (WEF) that took
place in Istanbul where more than 400 leaders from all over the world attended
the forum, entitled “Connecting regions – Creating New Opportunities”.
The World Economic Forum is an independent international organization
committed to improving the state of the world by engaging leaders in
partnerships to shape global, regional and industry agendas. The various World
Economic Forum meetings and venues provide the opportunity for leaders from
diverse areas of the world to address specific concerns and contribute to their
solutions.
INTRALOT is added to the Athens bourse’s FTSE/ASE blue chip stock index that
includes the best twenty (20) listed companies of ATHEX (Athens Stock
Exchange) in Greece.
INTRALOT ranks 1st at “Diamonds of the Greek Commence” Annual Survey,
which has been conducted by STAT BANK, a databank company focusing on the
Greek economy and business sector. The survey presents the fastest growing
companies with commercial activities, evaluating the financial results of several
companies. The evaluation was performed based on criteria such as 2005
Turnover, Percentage Growth of Turnover, Increase of Pre-Tax Income,
Shareholders’ Equity, Long-term Gearing as well as Return on Equity. INTRALOT,
with its exceptional growth and financial performance in 2005, ranked 1st among
local and multinational companies, across all sectors of Greek economy.
Page 16
Following an international tender, INTRALOT, through a subsidiary company, is
rendered as the most important international sports betting house in Italy and
the second most important overall amongst the companies that participated,
based on the characteristics of the tender, with the acquisition of 33% of the
1,278 licenses for the large exclusive sports betting points of sale (“POS”) that
result to a total of 416 licenses.
In addition, INTRALOT obtains the access to a new type of network for Italy, by
acquiring 164 licenses for non-exclusive POS (corners or shop-in-shops) and 9
licenses for exclusive horse race betting POS, a new product for the Company, as
well as licenses to distribute sports and horse racing through the Internet. All
licenses are of a 9-year duration and the total investment is estimated at 65
million euros.
2007
INTRALOT acquires a majority stake in the Argentinean technology company
Techno Accion, a firm with a significant presence in the local market (the 2nd
largest company in the sector amongst 4 Argentinean companies that hold
100$% of the local market) through 7,500 terminals in 10 states throughout
Argentina. With this acquisition, INTRALOT further strengthens its position in
Latin America, where it already has a presence in Chile, Peru and Colombia.
INTRALOT, via its subsidiary INTRALOT USA, becomes a contributor to the
Montana Council on Problem Gambling (MCPG) which is a non profit agency,
dedicated to alleviating gambling related social and personal distress through the
provision of a toll-free 24 hour help line and referral service to their outpatient
treatment program.
INTRALOT is the first Lottery Vendor in the history to score PERFECT on the
inspection of the Multi-State Lottery Association (MUSL), related to the provision
of multi-jurisdictional games, ensuring that each Lottery Party shall have
sufficient systems in place to mitigate and manage any and all risk associated to
the participation in a multi-jurisdictional game.
The inspection covers over 100 items including the computer gaming system
(CGS), internal control system (ICS), and various controls that protect these
systems from unauthorized access, tampering, power outages, and any event or
combination of events that may affect the security, integrity, or the availability of
the game.
INTRALOT is awarded the “Best Workplaces 2007” title in a contest held by the
international “Great Place to Work Institute” in collaboration with the ALBA
Graduate Business School. The contest was based on the evaluation of
five major working place principles: Reliability, Respect, Justice, Pride &
Companionship.
Employees’ answers accounted for 2/3 of the final evaluation of the companies,
while the remaining 1/3 resulted from the assessment of corporate policies and
benefits.
INTRALOT, Inc. and the Nebraska Lottery amend their contract to provide passthrough instant ticket processing for the Nebraska Lottery. Under the agreement,
Nebraska Lottery Scratch tickets will be validated through the on-line game
(Lotto) terminals currently provided by INTRALOT. Merging the functionality of
the Scratch and Lotto systems into a single piece of equipment will enable
Nebraska Lottery retailers to serve customers more efficiently by eliminating the
need to use a separate Scratch ticket validation terminal. Sales and validation
reports for Scratch and Lotto games will be available through the Lotto terminal’s
display and printer, which operate using touch-screen technology.
Page 17
INTRALOT NZ, successfully commissions in conjunction with the New Zealand
Department of Internal Affairs, 1613 licensed venues, 20.256-odd gaming
machines and 1000 jackpot controllers onto the new Electronic Monitoring
System in New Zealand. The connection of all venues was completed 10 days
ahead of the statutory deadline.
The completion of this project, one of the largest and most demanding in the
gambling sector worldwide, involving hundreds of operators and stakeholders,
signifies INTRALOT’s ability to successfully implement complex wide area
Monitoring Systems in widespread networks of video slot machines. Moreover,
with the commissioning of this project, INTRALOT literally embraces the globe as
it now has the most eastern installation (Chatham Islands, NZ) and the most
western one (Easter Island, Chile) in the world.
Following an international tender and a competitive process, INTRALOT Australia
Pty Ltd., 100% owned by INTRALOT S.A., signs a 5 years contract with extension
option to another 5 years, with the Lotteries Commission of Western Australia
(Lotterywest).
The project entails the supply and implementation as well as the support of the
integrated lottery system, based on INTRALOT’s open architecture solution
LOTOSTM O/S and CORONISTM family of terminals (including Ticket checkers and
Portable Terminals). Furthermore INTRALOT will be providing the hardware
equipment that will host the LOTOSTM O/S and its applications. The new system
will provide LotteryWest with all the necessary functionality to provide the
community of Western Australia with a reliable and modern lottery system.
INTRALOT’s microLOT terminal receives the SMART-IDEA of the year 2007 award
from the Public Gaming Research Institute (PGRI).
INTRALOT’s microLOT was chosen by a set of independent judges from among
ten SMART-IDEA presentations made by Lottery and company representatives at
SMART-TECH 2007 at the Wynn Las Vegas.
Τhe advanced microLOT terminal was fairly named SMART-IDEA of the year
2007, as it’s a next generation product, which is characterised not only by its
security but also by its volume and ergonomic design. Being the smallest fullfunction terminal in the market, microLOT can be used not only in traditional
lottery outlets, but also in other retail locations as bars and restaurants,
supermarkets and gas stations, kiosks and sport stadium facilities etc.
INTRALOT receives a Recognition Award for supporting the Foundation’s
Scholarship Program at the Annual Fulbright reception.
Recognizing the importance of education and as part of its CSR strategy,
INTRALOT and its president Mr. S. Kokkalis, are loyal and long-standing
contributors of the Fulbright Foundation, which offers opportunities to Greek and
American citizens – students, teachers, scholars and artists – to pursue a wide
variety of educational and cultural exchange projects.
INTRALOT receives the award for its Research and Technological growth
according to the European Innovation Scoreboard, during the conference “Week
of Science and Technology” organized by the General Secretariat for Research
and Technology of the Ministry of Development of Greece.
The European Innovation Scoreboard measures the innovation performance of a
country’s economy based on a wide range of indicators, from education to
expenditure in Information and Communication Technologies, investment in R&D
or number of patents.
INTRALOT successfully launches a new live lottery system, provided in a pilot
context, in the state Lottery of Hamburg in Germany. The new system includes
the customization and installation of LOTOS O/S (the base platform of
INTRALOT’s integrated gaming management system) along with new POS
terminal software. This is the first time that LOTOS is installed in the thriving
German market, facilitating also future activities in Germany and the E.U.
Page 18
Following an international tender “Nanum Lotto” consortium, in which INTRALOT
participates, wins an exclusive license to operate South Korea’s National Lottery’s
lotto games, which currently have a turnover of approximately $2.5 billion
annually. INTRALOT, apart from consortium shareholder, is also the provider of
9,000 CORONIS HEE & microLOT terminals, their peripherals and the
technologically advanced core operating system “LOTOS”.
INTRALOT becomes the fifth Greek company that concludes successfully the
procedure of ISO 27001:2005 Information Security Management System (ISMS)
Certification. The audit was carried out by the internationally acknowledged
German certification body DQS.
Following an international tender process, INTRALOT is selected as the successful
vendor by the New Mexico Lottery, the 4th Lottery in the US that entrusts
INTRALOT.
The project entails a technology upgrade including the installation of LOTOS O/S
On-line and Instant Gaming Computer System, more than 1,100 terminals
(Coronis HEE, microLOT and mobile Coronis IPT) as well as Instant Ticket
Vending Machines (iTVM) for online and instant scratch games. In addition,
INTRALOT will install a state-of-the-art satellite network to link retailer terminals
to the central system.
The contract’s duration is of seven (7) years with a three (3) year extension
option.
INTRALOT signs a 3-year agreement with OPAP S.A. for the upgrade of the IT
systems, the telecommunication equipment as well as the LOTOS software
platform for the development of new generation games and new value added
services applications. INTRALOT will also provide OPAP S.A. with 29.400
terminals (9.800 retailer terminals, 9.800 self service terminals and 9.800 ticket
checker terminals). Within the context of the agreement, INTRALOT and its
subsidiary Betting Company will undertake the expansion of the “Pame Stihima”
betting game so as to offer new options to the players as well as the provision of
support services concerning the operation of the game.
In addition, the agreement includes the terms for the provision of maintenance
services, technical support and operation for the entire IT infrastructure for 3
years with an option for a 1-year extension.
INTRALOT’s subsidiary in Russia, INTRALOT OOO, signs a contract with ORGLOT
OOO for the operation of the All-Russia State Lottery. ORGLOT OOO undertook
this project, following a tender, from the Federal Agency of Physical Training and
Sport of the Russian Federation (Rossport), which holds the license.
This project that will be implemented by INTRALOT and ORGLOT entails the
development of a sales network with more than 16,000 INTRALOT’s CORONIS
family terminals that will be installed in the entire Russian territory. INTRALOT
will also provide LOTOS software platform which will allow the dynamic expansion
of the sales network, which, according to the agreement, is expected to reach
40.000 POS.
This project is considered to be one of the most technologically advanced
projects ever implemented in the global gaming industry, as it involves the
implementation of an integrated lottery system covering all the regions of the
Russian Federation located in 11 time zones.
Page 19
INTRALOT is selected to be a member of the newly founded Global Growth
Companies Community of the World Economic Forum that comprises of the top
125 new generation companies that are expected to change the global
competitive landscape. The establishment of the new group took place at the
World Economic Forum’s “Inaugural Annual Meeting of the New Champions”
where more than 1.700 leaders from 90 countries participated.
The “New Champions” are businesses that were recognised as having
demonstrated a clear potential to become leaders in the global economy, based
on such factors as a company’s business model, growth record, leadership in
their industry and outstanding executive leadership, among others. 40% of the
members are from Asia, 26% hail from Europe, 20% are based in the Americas
and 14% come from Africa and the Middle East.
INTRALOT’s General Technical Division is awarded with the significant
“Committed to Excellence in Europe” distinction, after successfully completing its
participation in the Levels of Excellence program of the European Foundation for
Quality Management (EFQM). EFQM, founded in 2001, is a non-for-profit
organization the program of which is to compensate the efforts and the results of
the enterprises which adopt the EFQM model as well as to motivate them to keep
seeking the everlasting improvement of their entrepreneurship.
INTRALOT’s participation in the program resulted to the implementation of 3
projects, namely the design and setup of the company’s Intranet, the creation
and certification of its Information Security Management System (ISMS) against
the requirements of the international standard ISO27001 and the establishment
of a CRM scheme for better and more effective measurement of INTRALOT’s
clients’ satisfaction.
Breaking the 54-year monopoly of the public lottery licence and following an
international tender process, INTRALOT Australia Pty Ltd, a subsidiary of
INTRALOT S.A. is granted a 10-year licence to operate in the territory of Victoria
a variety of lottery and instant games. The company will establish an expanded
and modern distribution network, based on its state-of-the-art online system that
will exceed 1.000 points of sale.
The Chief Executive Officer of INTRALOT, Constantinos Antonopoulos,
is inducted into the "LOTTERY INDUSTRY HALL OF FAME" as one of the most
important personalities in the international gaming sector, following his election
by the HALL OF FAME members. The institution was founded upon initiative of
the internationally prestigious Public Gaming Research Institute (PGRI). The
specific distinction was established to recognize and honor the accomplishments
of persons active in the lottery industry who contributed in making it one of
the leading sectors in the global economy."
INTRALOT wins the “Highly Commended – Best Investor Relations by a Greek
company” award by IR Magazine’s 2007 Annual Awards for Εxcellence in Investor
Relations in Continental Europe. The award, judged by leading buy- and sell-side
analysts and portfolio managers across the industry, is a recognition of
INTRALOT’s strength of performance and its ongoing relationship management
strategy.
Following an international tender process, INTRALOT is selected as the successful
vendor by the South Carolina Education Lottery (SCEL), the 5th Lottery in the US
that entrusts INTRALOT.
In addition to the LOTOS online gaming system, SCEL choose to deploy
INTRALOT’s new microLOT compact, full function terminal to all of the lottery
retailers. INTRALOT will initially supply 3,800 CORONIS microLOT terminals and
1,800 ticket checkers plus related equipment such as LCD Player Transaction
Displays and Player Advertising Displays. A state-of-the-art fully redundant
satellite network will be utilized to link retailer terminals to the central system.
The operation of a primary data center in South Carolina and all other support
functions, such as marketing, training, maintenance and repair, retailer hotline,
field operations and ticket stock warehousing are also included in the contract.
The contract’s duration is of seven (7) years with a three (3) year extension
option.
Page 20
INTRALOT’s subsidiary in Poland, TOTOLOTEK, the exclusive betting distributor of
the Polish Horse Track and the biggest Fixed Odds Betting operator in the
country is granted a license by the Polish Government to operate on the
European Pool of the Swedish Horse Racing Totalisator Board, ATG, which offers
betting on Swedish horse races in a number of countries. By cooperating with
ATG, TOTOLOTEK’s operation participates in a worldwide network, thus
reinforcing the dynamic expansion of its POS network (the biggest in Poland) and
providing players the opportunity to take part in big international Jackpots.
INTRALOT receives prestigious awards honouring its Investor Relations and
Human Resources Departments. In particular, Mr. Elias Athanasiou, INTRALOT's
Investor Relations Director, receives the "Best IR Officer Sell Side Award” from
Capital Link, while the Human Resources Department receives the "Use of
Information Technology in People Management" human resources award by
KPMG in the framework of the 11th People Management Symposium.
Page 21
1.2 Company’s distinctions and awards
a Global Leader…
A. AWARDS
1. GLOBAL AWARDS
i. INTRALOT : ONE OF THE 125 NEW CHAMPIONS OF THE WORLD ECONOMIC
FORUM
As an active member of the global business community and a leader in its industry,
INTRALOT was selected to be a member of the newly founded Global Growth
Companies Community of the World Economic Forum. The Global Growth Companies
Community comprises of the top 125 new generation companies that are expected to
change the global competitive landscape. The “New Champions” are businesses that
have demonstrated a clear potential to become leaders in the global economy, based
on such factors as a company’s business model, growth record, leadership in their
industry and outstanding executive leadership, among others.
ii. “SMART-IDEA OF THE YEAR 2007” INNOVATION AWARD BY THE PUBLIC
GAMING RESEARCH INSTITUTE (PGRI)
INTRALOT’s microLOT terminal won the “SMART-IDEA of
the year 2007” award provided by the Public Gaming
Research Institute (PGRI). microLOT received the most
points between ten SMART-IDEA presentations made by
Lottery and company representatives at the SMARTTECH 2007 conference held in Las Vegas.
Page 22
iii. “LOTTERY PRODUCTS OF THE YEAR 2006” INNOVATION AWARD BY THE
PUBLIC GAMING RESEARCH INSTITUTE (PGRI)
INTRALOT’s “B-ON” Platform won the “Lottery products of the
Year 2006” award, provided by the Public Gaming Research
Institute (PGRI).
The 2006 “Lottery Products of the Year” awards were judged
by Lottery Directors and presented on July 12th during PGRI’s
EXPO/ILAC Conference in Las Vegas.
iv. “COMMITTED TO EXCELLENCE IN EUROPE” BY THE EUROPEAN FOUNDATION
FOR QUALITY MANAGEMENT (EFQM)
INTRALOT’s General Technical Division has been awarded with the significant
“Committed to Excellence in Europe” distinction, after having successfully completed
its participation in the Levels of Excellence program of the European Foundation for
Quality Management (EFQM); the focal point of organizations pursuing the best
business practices. INTRALOT’s participation begun in January 2007 with the
evaluation of its General Technical Division based on 9 criteria placed in the context
of the EFQM Excellence model. As a result, 3 projects have been implemented
concerning the design and setup of the company’s Intranet, the creation and
certification of its Information Security Management System (ISMS) against the
requirements of the international standard ISO27001 as well as the establishment of
a CRM scheme for better measuring our clients’ satisfaction.
v.
"BEST INVESTOR RELATIONS OFFICER SELL SIDE AWARD” BY CAPITAL
LINK
INTRALOT's Investor Relations Director, Mr. Elias Athanasiou received in February
2008 the “Best IR Officer Sell Side Award” from Capital Link, an organization that is
based in New York and has introduced the Annual Investor Relations Awards to the
Greek market since 2003. The award, judged by leading experts across the global
investment community, recognizes the Company's ongoing investor relationship
management strategy.
Page 23
vi. INTRALOT:
“HIGHLY
COMMENDED
–
BEST
INVESTOR
RELATIONS”
AWARD BY IR MAGAZINE
At the 2007 IR Magazine’s annual awards INTRALOT won the “Highly Commended –
Best Investor Relations” award for excellence in investor relations in Continental
Europe. The awards, judged by the industry’s leading buy/sell-side analysts and
portfolio managers, recognize the strong performance of participating companies and
pay tribute to the finalists’ on going investor relationship management strategy.
This distinction was to be expected as over the past years INTRALOT has experienced
the largest organic growth in its sector, undertaking projects of great significance.
vii. “LOTTERY INDUSTRY
HALL
OF
FAME”
AWARD
BY
PUBLIC
GAMING
RESEARCH INSTITUTE (PGRI)
In 2007 INTRALOT’s CEO, Constantions Antonopoulos, was recognised as one of the
most important personalities in the gaming sector. His distinction came in the form of
the “LOTTERY INDUSTRY HALL OF FAME” award sponsored by the Public Gaming
Research Institute (PGRI), an international foundation supporting for more than 30
years the companies of the gaming sector by sponsoring conferences, trade shows
and publishing research for the lottery industries around the world.
viii. INTERNATIONAL
RECOGNITION
OF
INTRALOT’S
RELIABLE
TECHNOLOGY BY THE MULTI-STATE LOTTERY ASSOCIATION (MUSL)
INTRALOT is the first Lottery vendor in history to have gained a perfect score after
the evaluation of the Multi-State Lottery Association (MUSL) which was required in
order to provide multi-jurisdictional games -in this case Powerball© and Wildcard©
On-line games- for the State of Idaho.
The evaluation would ensure that each Party Lottery would have sufficient systems in
place to effectively confront any possible risks associated with multi-jurisdictional
games. The inspection covered over 100 items, including the computer gaming
system (CGS), the internal control system (ICS), as well as various security features
that protect these systems from unauthorized access, tampering, power outages and
any event that could affect game integrity or availability.
Page 24
ix. 2ND AMONG BEST PERFORMED COMPANIES IN ROMANIA BY THE CHAMBER
OF COMMERCE AND INDUSTRY OF ROMANIA
In 2002, the Chamber of Commerce and Industry of Romania announced that Lotrom,
an INTRALOT subsidiary, was awarded the 2nd place at a business competition among
the best-performed companies of the year.
The “Top of the Firms” competition is organized annually by the Chamber in order to
promote competition and reward the companies that really contribute to the creation
of a functional and competitive market economy in Romania.
x.“EUROPE CORPORATE GAMES 2006 & 2007”
2006
-
Medal in the Basketball 3X3 venue
-
Silver Medal in the 10 km race
-
Best Team and Best Fans Participation Award
2007
-
“Medallist Award”
-
“Championship Divisions Award”
-
“Best Fans Participation Award”
After successfully participating in Europe’s largest corporate sporting competition in
2006, a year later INTRALOT was declared the champion of the “Europe Corporate
Games 2007”. The event took place in Athens for the 3rd consecutive year and hosted
more than 2,200 participants from 13 countries.
Page 25
…your Local Partner
2. LOCAL AWARDS
i.
“INTERNATIONAL BUSINESS ACTIVITY” AWARD BY THE ATHENS CHAMBER
OF COMMERCE
In 2004, INTRALOT was honoured with the “International Business Activity” award
provided by the Athens Chamber of Commerce and Industry. This award comes as
recognition of INTRALOT’s successful business activity in the global market.
ii.
“AWARD
FOR
RESEARCH
AND
TECHNOLOGICAL
GROWTH”
BY
THE
GENERAL SECRETARIAT FOR RESEARCH AND TECHNOLOGY OF THE MINISTRY OF
DEVELOPMENT OF GREECE
In 2007, during the “Week of Science and Technology” conference organized by the
General Secretariat for Research and Technology of the Ministry of Development of
Greece, INTRALOT was awarded for its Research and Technological growth according
to the European Innovation Scoreboard. The European Innovation Scoreboard
measures the performance of a country’s innovations based on a wide range of
indicators, from education to expenditure in Information and Communication
Technologies, investment in R&D, number of patents etc. The companies achieving
the highest performance in terms of technology growth receive a distinction that
acknowledges their contribution in worldwide innovation.
iii.
1st
AT “DIAMONDS OF THE GREEK COMMERCE” ANNUAL SURVEY FOR
2003 & 2005 BY STAT BANK
In 2003 & 2005 INTRALOT ranked 1st at the “Diamonds of the Greek Commerce”
annual survey conducted by STAT BANK, a databank company focusing on the Greek
economy and business sector. Evaluating the financial results of several commercial
companies this survey presents the fastest growing companies. The evaluation was
performed based on criteria such as previous year Turnover, Percentage Growth of
Turnover, Increase of Pre-Tax Income, Shareholders’ Equity, Long-term Gearing, as
well as Return on Equity. Thanks to an exceptional growth and financial performance
INTRALOT ranked 1st among local and multinational companies, across all sectors of
the Greek economy.
Page 26
iv.
“BUSINESS AWARDS” BY EUROMONEY CONFERENCE
2006
-
“Best Innovative Manager” award
-
“Best Global Oriented Manager” award
-
“Best Company of 2006” award
-
“Internationalisation” award
-
“Business Innovation” award
-
“Investor Relations” award
2005
-“Best Company of FTSE-MID/40”
- “Business Innovation” award
2004
-“Best Company of FTSE-MID/40”
-“Manager of the year” award
- “Internationalisation” award
2003
-“Best Company of the year” award
These awards are sponsored by the “MONEY” financial publication and result from a
voting procedure among sell-side analysts, institutional investors and fund managers,
as well as retail investors. The purpose of the competition is to promote and extol the
best of the Athens Stock Exchange listed companies for their contribution to the
development of the stock exchange and the Greek economy in general.
v.
“BUSINESS AWARDS” BY HRIMA MAGAZINE
2007
-“Best Company of FTSE-ASE/20”
-“Internationalisation” award
-“High Growth Rates” award
-“Investor Relations” award
Page 27
vi. RECOGNITION AWARD BY THE FULBRIGHT FOUNDATION
At the Annual Fulbright reception in 2007 INTRALOT received a Recognition Award for
supporting the Foundation’s Scholarship Program.
vii.
“BEST
WORKPLACE”
IN
GREECE
BY
THE
"GREAT
PLACE
TO
WORK”
INTERNATIONAL INSTITUTE
According to the “Best Workplaces Hellas 2007” competition organized by the "Great
Place to Work” international Institute, INTRALOT is among the 20 best companies to
work in Greece.
viii. "USE OF INFORMATION TECHNOLOGY IN PEOPLE MANAGEMENT" HUMAN
RESOURCES AWARD BY KPMG
In February 2008, INTRALOT has enriched its awards portfolio with the "Use of
Information Technology in People Management" human resources award by KPMG,
in the framework of the 11th People Management Symposium. A voting committee
consisting of University Professionals rewarded INTRALOT's HR department for their
commitment
to
excellence
in
human
resources
management
through
new
technological means.
B. CERTIFICATIONS
1. ISO 27001:2005 CERTIFICATION
INTRALOT
is
certified
for
its
Information
Security
Management System (ISMS) against the requirements of
the international standard ISO27001:2005. The ISMS is
the framework to design, implement, manage, maintain
and enforce information security processes and controls
throughout
the
organizations,
in
a
systematic
and
consistent manner.
2. ISO 9000:2000 CERTIFICATION
INTRALOT has been awarded the ISO (International Organisation for Standardization)
9000:2000 certification. This certification provides a tested framework guaranteeing
a systematic approach in the process management that conforms to customers’
expectations, while assuring the highest quality standards of INTRALOT’s products,
systems and services.
Page 28
2. Products & Services Overview
2.1 Products & Services
INTRALOT’s global success is a result of the
Building cutting-edge lottery
successful implementation of state-of-the-art
solutions has been INTRALOT’s
and technologically advanced Lottery Systems
mission right from the start.
in combination with its extensive experience in
establishing secure and profitable operations
around the globe.
The integrated Lottery Systems developed by INTRALOT are today the most
advanced systems available worldwide and are distinguished for their quality,
reliability, security, flexibility and expandability.
Our solutions achieve and maintain a business and technology growth continuum for
our customers who witness an exceptional level of quality and service.
Fast, efficient and secure transactions are imperative in the lottery industry.
Having
recognised this importance from the
very beginning INTRALOT has
continuously invested in equipment, processes, software and in the overall system in
general, in order to make its transaction processing platform the best available. And
our goal has indeed been achieved by offering a widely recognised solution.
INTRALOT has an added advantage of being both a systems vendor a lottery
operator. With over sixteen (16) years of unmatched worldwide experience in those
fields, INTRALOT guarantees the industry’s most advanced and innovative solutions.
INTRALOT’s system is currently deployed and operative in 19 countries around the
world, while the large client-base expansion in 2005-2007 has raised the
company’s revenues for 2006 to nearly €800 million.
Since the first installation of the LOTOS™ O/S system, INTRALOT has never
defaulted in terms of incorrect results, loss of integrity, or breach or infringement
of the legal regulations throughout the operation and supply of lottery games.
Page 29
At its headquarters in Athens INTRALOT maintains a software development
department with over one hundred fifty (150) dedicated, skilled and highly
experienced engineers, including top-notch research and development facilities, as
well as a team of lottery experts that manage customer support activities and
training operations. All development, research, testing and support facilities are
certified according to the ISO9001 and ISO27001 standards.
A key advantage of INTRALOT’s software is that it is being developed in-house.
Designing, developing and implementing our own product ensures total control over
the entire project lifecycle with the added flexibility and ability to tailor each and
every installation to the needs of each market and client.
All our software applications are based on high quality industry standards and have
repeatedly been at the forefront of international praise. In fact, the LOTOS™ O/S
transaction processing system is a fault tolerant, highly secure, diverse and
innovative solution that had a profound impact on the US Multi-State Lottery
Association (MUSL). After reviewing INTRALOT’s system, the Association recognised
the necessity for enhancement of their compliance standards and consequently
introduced stringent requirements.
Page 30
LOTOSTM O/S: The Integrated Platform
LOTOS™ O/S is INTRALOT’s integrated gaming
system platform, which performs the management,
control, administration and support of on-line
wagering operations. It has been designed and developed using open architecture
technologies and can be deployed on a variety of hardware and software platforms.
LOTOS
O/S
has
INTRALOT's
been
extended
the
result
experience
of
in
deploying and supporting integrated lottery
information
It
offers
systems
a
fully
around
the
integrated
globe.
gaming
environment that supports the broadest
Based on an open architecture
concept LOTOS O/S is not
restricted by hardware or software
platforms, while it can easily
interface with 3rd party
applications.
range of games and value added services,
accessible through lottery terminals, the internet, interactive TV, mobile phones etc.
LOTOS™ O/S is a superior gaming platform based on the n-Tier architecture (J2EE,
J2SE, HTTP, XML, and Application Server) that is fully compatible with third-party
systems and offers expandability, reliability and operational safety. Interconnectivity
is made possible thanks to the I-Gate, an in-house developed middleware that
facilitates the connection of the platform to any external system and networks.
I-Gate supports open connection technologies (Web Services, APIs etc.), open
communication protocols, (TCP/IP, HTTP etc.) as well as open data transfer
technologies (XML). The heart of LOTOS™ O/S is the transactions processor (xTAP),
which demonstrates a tremendous capability in processing transactions related to
lottery games and value added services. LOTOS™ O/S is comprised of five (5) main
modules as seen in the following figure:
Page 31
Te r m i na l s
INTRALOT offers the most versatile product line of on-line lottery terminals.
The CORONIS™ Family of Terminals are manufactured according to the highest
quality, operational, reliability and security standards.
Throughout the CORONIS product line INTRALOT offers a wide range of retailer, selfservice and portable lottery terminals that can support any type of games, such as
numerical, instant, sports betting and video lottery and, thus, practically address any
business need.
CORONIS terminals incorporate INTRALOT's extensive operational experience and
know-how and are subject to continuous improvement as part of our on-going effort
to provide players and retailers with the highest level of service. By deploying the
CORONIS terminals throughout their operations many lottery operators enjoy
unmatched benefits while being able to adapt to the ever-changing conditions of the
gaming market.
Page 32
CORONIS
terminals
can
support
the
Lottery’s
demand
for
transparency,
accountability, high standards of service and commitment to Responsible Gambling.
The CORONIS™ Family of Terminals comprises of:
CORONIS HEE (High-End Enhanced) and CORONIS SL (Slim-Line): at the
forefront of the CORONIS product line, these lottery terminals are based on the
established agent/user concept and offer the complete spectrum of capabilities
and functionalities.
microLOT: Small size, compact and low cost lottery terminal but powerful
enough to fulfil current and future gaming requirements.
CORONIS IPT (Integrated Portable Terminal): the ideal portable lottery
terminal enables Lotteries to broaden their customer base and provide a high
level of proactive sales service by really being where their clients are.
CORONIS MP (Multi-Purpose): innovative on-line self-service terminal which
supports the full range of lottery, Video Lottery and electronic instant games and
enables diverse payment methods such as cash, credit cards and prepaid cards.
CORONIS TC (Ticket-Checker): self-service terminal that allows players to
check if their tickets are winning.
WINSTATION: a self-service terminal for on-line games and instant tickets,
which can be installed in traditional Points of Sale (POS) as well as in any other
locations.
CORONIS eyeLOT: Based on the icon digital imaging technology that completely
replaces mechanical page scanners.
Page 33
B-On platform
B-On is INTRALOT’s response to the
increased market demand for an
innovative
solution
related
to
B-On creates a unique gaming environment
to play anywhere, anytime, anygame.
account based gaming, betting and
interactive services.
B-On creates a unique gaming environment for each end user segment, offering
players the freedom of choice to play any game anywhere, anytime. With a single
account registration and electronic wallet, B-On registered players can enjoy rich
content games at their own convenience through personal and portable devices such
as PCs, PDAs, mobile phones, Interactive TV, etc. B-On offers the following game
types:
Interactive lottery games (Numerical games, Instant ticket games, Draw ticket
games).
Interactive fixed odds betting (Sports Betting, Event Betting).
Casino games (Card games, Roulette games, Video lottery games).
Entertainment games (Peer to Peer Betting –where players bet against each
other- on skill games, Instant win tickets with bonus skill games).
The supported games are either single player games, like lottery numerical games, or
multiplayer community games like peer-to-peer games. Community multiplayer
games are organized on virtual game rooms where players join and play with friends
and game community members. Players can socialize by chatting with or competing
against other players to win cash or prizes.
From the game operator point of
view, B-On is a secure and open
system that supports business
needs
for
management
player
and
game
and
can
easily
expand to satisfy future business
requirements and new gaming
products.
Page 34
A comprehensive back-office application expands the operational capabilities for easy
management of player financials and accounting, player profiling and game history,
electronic payments and financial history, marketing and promotional activities, while
providing extensive support for security, auditing and policy control.
Essentially, B-On is a combination of powerful gaming servers, flexible back-office
applications and a variety of front-end interactive channels for game and information
content distribution, developed on a cutting edge N-tier architecture and providing a
state of the art game operations infrastructure.
Recognising its high impact in next-generation gaming services,
Lottery Directors voted B-On as the “Lottery product of the Year” for
2006
at
the
Public
Gaming
Research
Institute’s
EXPO/ILAC
Conference held in Las Vegas.
Page 35
2.2 Innovation in Research & Development
Introduction
Innovation has always been a pivotal
element of INTRALOT’s business strategy
and
the
company’s
driving
growth
force
and
behind
the
Innovation is the Driving Force
behind INTRALOT’s Growth and
Development.
development.
Capitalizing on the technology heritage of
its affiliated company INTRACOM (one of the largest IT and telecommunications
companies in South-East Europe) and on its fifteen years of R&D and operational
experience in lotteries, INTRALOT has gained a really deep knowledge of the
underlying
technologies
and
the
business
elements
of
Lottery
and
Gaming
Organizations in relation to products, services and systems. Our innovations make us
an undisputable technology leader and have resulted in enhancing the operating
efficiency of our clients around the world.
Recent developments in the area of gaming and e-services and the trend towards
customer-oriented systems have led to the research and development of new,
innovative solutions. The company’s R&D utilizes in-house development programs in
tandem with cooperative programs with other high-tech companies. In both cases
the objective is to test, evaluate and gradually incorporate cutting edge technologies
in existing and under development products, as well as to transfer the “know-how” to
INTRALOT’s divisions and group member companies.
In this aspect, INTRALOT continuously evaluates, applies and exploits the benefits of
the advanced incorporation and reliable technologies to its product lines. INTRALOT’s
software experts and its partners are continuously trained in modern technologies to
quickly react to market changes and provide innovative solutions for new challenges.
Page 36
Innovation and R&D Objectives
INTRALOT’s R&D focuses on the constant improvement and development of its
gaming systems, services and products, as well as on the introduction of innovative
technologies. INTRALOT consistently invests a substantial amount of dedicated and
non-dedicated resources in R&D programs, which foster emerging technologies and
promote innovation in the gaming market.
Innovation and R&D Strategy and Methodology
In
today’s
increasingly
competitive
and
complex business environment, characterized
by
new
business
market
entrants
activities,
the
and
major
overlapping
challenge
INTRALOT - A Leader and
Trendsetter in Gaming
Innovation
companies are facing is to find ways that
differentiate them, keeping them ahead of the competition. In this sense, innovation
can generate sustained competitive advantages, as long as research objectives are
clearly identified and R&D activities are organized in a focused and success-oriented
manner. The latest requires the formulation of an innovation strategy, which will set
out objectives and create a structured methodology to closely align research
activities with the objectives.
INTRALOT, a leading innovator in the gaming industry, has adopted a "trendsetter"
innovation strategy, which aims on establishing new technologies in the market. To
accomplish that, INTRALOT’s R&D initiatives and specific objectives are generated
from its strategic alertness to spot business opportunities, as well as from its
business-driven development approach to lottery systems, products and services.
Based on these qualities INTRALOT has formulated a systematic R&D strategy and
methodology, as depicted below:
Page 37
INTRALOT’s R&D Strategy and Methodology
As seen above, INTRALOT’s innovation strategy does not consider R&D efforts as a
back office activity of our research team but as a dynamic process that involves the
whole company. INTRALOT’s branches and subsidiaries consistently provide feedback
from local markets and lottery operations and it is then up to system experts to
identify operational challenges, marketing experts to assess market trends and
customer preferences, and senior management to provide the overall strategic
perspective. The importance of the employees’ contribution in the R&D value chain as
a source of new ideas and innovations is reflected in INTRALOT’s corporate culture
and in the processes implemented for constantly encouraging and rewarding our
employees.
The single most important element in this process is the clear and strategic visioning
of new technologies, customer requirements, emerging markets and ever-changing
regulatory environments. INTRALOT, having proceeded far beyond the concept of
“facilities management” of its competitors, has acquired this quality as a licensed
business operator in worldwide Lottery jurisdictions. This strategic visioning, based
on our broad operational experience across all fields of the gaming industry and
coupled with our strong technological position, creates R&D programs which aim at
the development of next-generation, revolutionary applications.
Page 38
Process Model for Software Development
The software development is driven by a process model that is especially designed
for our R&D strategy, while standardized procedures are implemented for the
realization of software development projects on time and within budget.
Practical experience has shown that existing software development models vary
greatly in their level of support and flexibility. For example, while the official
“Rational Unified Process” represents extremely complex process models that permit
a high degree of support with marginal flexibility, agile development methods such as
“Extreme Programming” offer much greater flexibility with less support. For this
reason, INTRALOT has chosen to develop its own process model to match the
increasing demands of today’s development projects, including:
Short-term to mid-term development period
High communication intensity
Delegated development using new technologies
Integration into existing systems or migration of existing systems
Open system architecture on a component basis
Assurance of evolution capability
Our process model is thus designed to enable great flexibility while offering a high
level of support.
Page 39
Quality Assurance
Quality assurance guarantees an ongoing high degree of software and service quality
as well as effective project management and is the basis for the successful
implementation of INTRALOT’s projects. Quality assurance applies to the product
creation process of both INTRALOT and its partners, as well as to the execution of
customer projects and services. The following guidelines govern the implementation
of our quality assurance methods:
Customer orientation and satisfaction: INTRALOT demonstrates great abilities in
understanding the needs of its customers, while focusing on reliable order
processing and on quality requirements, system specifications management and
quality controlled standards for products and service delivery requests.
High product and service quality: INTRALOT’s best practices and highly motivated
employees elevate our products and services to the highest quality level.
Reliable scheduling: Close collaboration with the customer, supervising planning
and risk management to ensure punctual delivery of products and services.
Great employee satisfaction: Employee-oriented measures achieve a high level of
employee satisfaction and commitment.
Transparency in internal procedures: Detailed documentation of all processes for
achieving quality through transparency.
Page 40
Innovation and R&D Achievements
INTRALOT’s rich history of technology advancement and innovation has brought
international recognition in the gaming market. Our R&D programs and the
harmonious collaboration with third party vendors and have considerably contributed
to the advancement of the gaming Industry.
During the past years the company’s R&D department has developed technologies
most of which have already been deployed in INTRALOT’s worldwide operations.
Indicatively, our research programs’ results include:
Further development and technological integration of new features on gaming
operations and support platforms.
The development of a multi-user gaming platform supporting lottery, betting,
recreational and skill-based interactive games.
The
development
and
support
of
new
terminal
equipment
and
new
telecommunication access networks.
The utilization of worldwide applicable technologies and architectures.
The optimization of security systems and applications according to international
standards.
The expansion of the advanced open integration interfaces utilized by INTRALOT’s
systems.
INTRALOT’s successful R&D activities are highlighted by outstanding achievements,
such as:
The innovative B-On platform which goes beyond the traditional lottery points of
sales by supporting a variety of games with enhanced features, over alternative
sales channels. In 2006, B-On won the “Lottery Product of the Year” award
provided by the Public Gaming Research Institute.
Page 41
The world’s smallest lottery terminal, the microLOT, which
won the “SMART-IDEA of the year” award at the SMART-TECH
2007 conference held in Las Vegas and sponsored by the
Public
Gaming
Research
Institute
(PGRI).
INTRALOT’s
microLOT was the terminal of choice among ten SMART-IDEA
presentations made by Lottery vendors.
The perfect score on the rigorous compliance audit contacted
in January 2007 by the Multi-State Lottery Association (MUSL) for joining the
association and providing multi-jurisdictional games. It shall be noted that
INTRALOT was the first Lottery vendor in history to achieve a perfect score. In
recognition of our ingenuity in the fault tolerant design of the central gaming
system, the robust network design and the utilized network security, the MUSL
recognised the necessity for enhancing its compliance standards and, thus,
introduced stringent requirements
During the “Week of Science and Technology” 2007 conference organized in Athens
by the General Secretariat for Research and Technology of the Ministry of
Development of Greece, INTRALOT was awarded in recognition of its innovation
strategy according to the European Innovation Scoreboard. The European Innovation
Scoreboard measures the performance of a country’s innovations based on a wide
range of indicators, from education to expenditure in Information and Communication
Technologies, investment in R&D, number of patents etc. The companies achieving
the highest performance in terms of technology growth receive a distinction that
acknowledges their contribution in worldwide innovation.
Page 42
2.3 Marketing Services
Introduction
The cornerstone of INTRALOT’s success in the international market is the provision of
tailor-made marketing services which aim at providing comprehensive support to
Lotteries. INTRALOT offers a wide spectrum of marketing services such as market
research, games design, marketing plans and sales network design and development.
Market Research and Analysis
Through
information
collected
about
the
players
via
market research INTRALOT assists the Lottery to identify
and define market opportunities and problems. In addition,
it generates, refines and evaluates marketing actions while
monitoring
marketing
and
sales
performance,
and
improving understanding of marketing elements in the process.
In this context INTRALOT can provide valuable assistance to the Lottery by:
setting survey objectives and identifying required data
Deciding on the sample and survey administration
Designing questionnaires
Processing data
Analysing and interpreting research findings.
Page 43
By exploiting the information derived by market research INTRALOT can, among
others, assist Lotteries to:
Select the best suitable games based on players’ preferences
Design and implement various marketing activities
Estimate and forecast sales.
Game Design and Development
INTRALOT has great experience in designing new
games and evolving existing ones, while its
extensive
gaming
library
offers
significant
benefits to the Lottery.
INTRALOT’s approach to evaluate and develop
new games is a holistic one that:
Determines how new games fit into corporate strategy and future trends.
Defines new game specifications to capitalize on market needs and corporate
strategy.
Evaluates strategic ramifications in developing and launching new games.
Organizes, develops, and launches new games targeted at evolving and growing
markets and diverse players target groups.
Implements new game strategies within the corporate framework.
The following figure presents the stages followed by INTRALOT for developing new
games:
Page 44
New Game Development Process
The development of new games is typically an interactive process that involves an in
depth understanding of the lottery market and the players’ needs. INTRALOT’s
approach is getting the right games to the right markets by:
selecting the most appropriate types of games for each segment of the public.
determining their exact form.
customizing each game’s rules.
Marketing Communication Plan
INTRALOT designs the appropriate marketing strategy and provides the appropriate
communication requirements for the Lottery. Concerning the marketing strategy,
INTRALOT can guide, elaborate and analyse, on the following:
Define and secure potential market shares.
Develop the sales strategy and give motives to the players.
Evaluate acceptance of games by the public.
Develop a different identity for each game, as well as a suitable games portfolio.
Constantly monitor and analyse the market and the public’s response.
Page 45
Advertising
INTRALOT’s advertising and promotional plan for every marketplace
aims at assisting in elaborating and evaluating the most appropriate
strategies for the undertaken promotion and advertising campaigns.
Within this context, INTRALOT offers valuable experience in:
successfully introducing new games and improving the existing
ones
establishing the positioning of games and their evolvement
developing a familiar and friendly brand image aimed at the
players’ specific target group.
Commercial Logo
In co-operation with local advertising companies INTRALOT provides
guidance in determining the characteristics of trademarks and logos and selecting the
most appropriate ones; that is, names and logos easy to memorise, in accordance
with the product’s style and able to upgrade the product’s image.
Media Buying Program
INTRALOT’s planning of a media-buying program of the selected advertising company
brings to the Lottery the best possible outcome for its advertising campaign.
INTRALOT can assist in:
the planning of a media buying program.
the selection of the most appropriate media for the implementation of the
advertising campaign.
the selection of the most effective time / place zones.
Promotional activities
INTRALOT’s sales promotion plays a decisive role in the introduction and growth of
the Lottery’s games. The promotional activities program, which focuses on both the
players and agents of the Lottery Operator, includes amongst others:
Indirect advertising
Bellow the line activities
Page 46
Initiatives towards the players
Direct Marketing
POS development related initiatives
Agents promotional programs
Merchandising
INTRALOT’s optimal exploitation of each POS for lottery games availability is vital for
the successful operations of the Lottery. Each POS is equipped with suitable
merchandising material and as with all retail oriented establishments the furnishing
and décor shall be selected in accordance to the product’s target group.
Our merchandising plan can successfully meet the following objectives:
Attract and entertain the public.
Clearly indicate the products available at a specific POS.
Display a modern, high-tech image of the lottery.
Demonstrate a professional and expert level of service.
Create a friendly image of the games on the player’s mind.
Public Relations
For the constant enforcement and promotion of the Lottery’s games, INTRALOT
assists in building an integrated program, including the design and creation of
informative material for the games, as well as the constant briefing regarding games,
events, winners and other relevant matters.
The Public Relations program can consist of the following:
Press relations
Press releases
Publicity campaigns
Media relations
On going communication
Through the public relations program, a promotional campaign for the games’ image
can also be based on the socio-economic gains.
Page 47
Sales Network Design and Development
INTRALOT offers valuable experience and “know-how” in
designing and implementing extensive and efficient sales
networks. More specifically, INTRALOT:
Defines the criteria for the selection of the most
appropriate points of sales.
Designs the points of sales in an attractive and
functional way, for complying with the players’ habits
and local conditions.
Provides the agents with extensive training seminars,
concerning the terminals’ use, game rules, Lottery
accounting and customer service.
Determines,
designs
and
provides
the
most
appropriate merchandising material and solutions that
can create a customer-friendly image of the products
and attract the attention of the public.
Designs local programs of sales network development,
according to the needs of various parts of a state.
Page 48
3. Financial Overview
Over the last years INTRALOT has experienced the largest organic growth in its
sector becoming the biggest lottery vendor in Europe and the second largest
worldwide in terms of revenues and profits.
Between 2003-2006 revenues increased from €320.4 mil. to €791.4 mil., with a
compound annual growth rate (CAGR) of 25.4%. In the same period Earnings before
taxes increased 2.5 times, to €223.6 mil. in 2006 from €88.7 mil. in 2003 (CAGR:
26.0%).
Sales Evolution 2003-2006
EBT Evolution 2003-2006
(in mil. €)
(in mil. €)
791.4
CAGR 25.4%
320.4
314.2
2003
2004
523.0
150.5
88.7
2005
223.6
CAGR 26.0%
2006
2003
99.2
2004
2005
2006
INTRALOT’s impressive growth is a result of its rapid international expansion. In
2002 total Revenues from International Operations contributed only 6.5% to
Consolidated Revenues, while for the first 9 months of 2007, this figure has
skyrocketed to 86,5%. In absolute amounts, International Revenues in the period
2002-2006 have increased 28.6 times.
Earnings before taxes (EBT) exhibited similar trends with revenues. International
Operations in 2002 contributed only 18.6% to Consolidated EBT, while in 9M07 went
up to 86.3%. In absolute amounts EBT from International operations has increased
31.8 times.
Page 49
International Operations –
International Operations –
Contribution to Consolidated
Contribution to Consolidated EBT
Revenues
86.3%
28.6x increase in 4-yrs
86.5%
74.7%
31.8x increase in 4-yrs
69.5%
75.2%
56.9%
62.7%
28.2%
23.8%
18.6%
6.5%
2002
5.5%
2003
2004
2005
2006
9M07
2002
2003
2004
2005
2006
9M07
2007 was a highly successful year for INTRALOT as the company managed to sign no
less than nine (9) international contracts with great significance for providing a total
of 65.000–90.000 lottery terminals to 360 million people.
INTRALOT contracts in 2007
Country/State
Page 50
Population (in mil.)
Italy
55
Argentina
40
West Australia
2
South Korea
50
New Mexico
2
Greece - OPAP
11
Russia
145
South Africa
45
Victoria - Australia
5
In the first 9 months of 2007 INTRALOT managed to grow net profits in a year-onyear basis, despite encountering increased set up costs from its numerous new
contracts (that are not yet fully contributing in the financial results) and not having
the benefits of the 2006 Football World Cup.
Consolidated Financial Statements For The 9 Months
Ended September 30th, 2007
%
(in € million)
9M07
9M06
Revenues (Turnover)
568,7
572,8
-0,7%
EBITDA
179,9
185,6
-3,0%
EBT
152,5
172,5
-11,6%
85,5
82,0
4,2%
EAT (after minorities)
Change
For 2007 INTRALOT’s management expects revenues to reach €880 million, an
increase of 11.2%, and Net Profit after tax & minorities to increase about 10% to 115
€mil.
INTRALOT GROUP
2007 E
% Change y-o-y
(in mil. €)
Revenues
880
+11,2%
Net Profit after tax
& Minorities
115
+10%
INTRALOT - Share Price Performance Last 1 year
€ 16
€ 15
€ 14
€ 13
€ 12
€ 11
€ 10
€9
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
May-07
Apr-07
Mar-07
Feb-07
Page 51
4. Corporate Social Responsibility
4.1 Social Contribution
Initiatives of 2007
The INTRALOT Group closely associates growth and development of its business
operations with the promotion of the Corporate Social Responsibility concept,
contributing to the enhancement of the quality of life and the cultural development of
the local communities in which it operates.
INTRALOT is a leading member of CSR Europe (Greece), a non-profit organization
whose mission is to help companies achieve a balance between profitability and
sustainable growth by placing corporate social responsibility in the mainstream of
their business practice.
Growth, development and the world of business
As part of its sponsorship strategy, INTRALOT supports scientific conferences and
forums that attract renowned experts and foster the exchange of views on
international relations, economic growth and prosperity, while cultivating a creative
environment for business contacts and commercial transactions.
The company’s most significant initiative in this area was sponsoring the “World
Economic Forums” that have taken place in China, Turkey, Latin America and other
countries, as well as the “Hour of the Greek Economy” conference organized by the
Greek-American Chamber of Commerce. Those events were attended by leading
politicians, diplomats and business professionals, fostering cooperation and the
exchange of ideas between diverse social and economic groups.
Responsible gaming
Recognizing the socially sensitive issues related to the gaming sector and promoting
the notion of responsible gaming, INTRALOT supported for the 3rd consecutive year
the Hohenheim University Research Center on Gambling, which conducts research on
the various economic and social aspects of betting games and their impact on player
behavior, habits and lifestyle.
Page 52
Moreover, through its subsidiary, INTRALOT USA, the company supported the
Montana Council on Problem Gambling. The Council is a non-profit agency dedicated
to alleviating gambling-related social and personal distress by providing support and
referral services, as well as educating compulsive gamblers and their families.
Corporate Citizenship and Public Welfare
In 2007, INTRALOT aided many sensitive and special interest groups through grants
and public welfare sponsorships, promoting the concept of social responsibility and
the notion that business enterprises can and should contribute towards safeguarding
and advancing the value of social cohesion.
Representative examples of the company’s many public welfare initiatives included a
donation to the “Doctors without Borders” in lieu of Christmas gifts to associates and
customers, and the participation in many concerts organized to support the summer
2007 fire victims in Pelopponisos, Greece. It shall also be noted that every 6 months
INTRALOT employees participate, among others, to the blood donation organized for
the Chrildren Hospital "Agia Sofia".
Distinction through Education
INTRALOT sponsors educational programs that offer young people an opportunity to
expand their knowledge base, improve their skills and, therefore, maximize their
prospects to succeed and distinguish themselves.
The company has received a Recognition Award by the Fulbright Foundation in
Greece, which offers opportunities to Greek and American students, teachers,
scholars, and artists to pursue a wide variety of educational and cultural exchange
projects.
Moreover, INTRALOT supported the initiative of the corporate basketball tournament
organized by the American Community of Schools (ACS) in Athens, by participating
with its basketball team. The company also donated to the students of the ACS a
number of interactive whiteboards that enable both students and staff to experience
the latest in educational technology.
Page 53
For a sustainable environment
INTRALOT’s respect for sensitive environmental issues is reflected in all its business
activities. The company’s employees have incorporated into their work culture
environmental protection and management principles, while its suppliers and
associates comply fully with specifications aimed at conserving natural resources. In
their daily activities, employees have adopted energy conservation practices and
adhere to the company’s recycling program, instituted at their own initiative.
Work environment
INTRALOT has been distinguished among large multinationals for its workplace
environment and in 2007 was ranked as one of the Best Workplaces in Greece by the
Great Place to Work International Institute. This distinction proves that we strive to
increase job satisfaction, which results in improved performance and ultimately leads
to enhancing the quality of life of our employees.
Page 54
4.2 Responsible Gaming
Responsible Gaming Commitment
INTRALOT strives to keep Lottery games profitable while ensuring that all necessary
steps are taken to eliminate excessive playing and gambling. We are especially
considerate of vulnerable groups, such as pathological gamblers, low-income groups
and under-age players.
For most people, Lottery games are a form of entertainment. For some, they can be
a problem. INTRALOT actively promotes responsible gaming by working with gaming
support groups and parenting organizations.
Recognising the socially sensitive issues related to the gaming sector, INTRALOT’s
strategy includes the following initiatives:
Provide Oversight
Appoint a high-rank INTRALOT executive to execute and provide ongoing oversight of
the corporate mission statement on problem and pathological gaming.
Strategically Pool resources and Networking Efforts
Draw on the lists of recommendations made by problem gaming support groups and
work together to solve the problems.
Page 55
Sponsor Conferences and Seminars
Cooperating with recognized gaming treatment professionals in order to train
management and staff to develop strategies for recognizing and addressing
customers whose gaming behavior may strongly suggest they may be experiencing
serious to severe difficulties.
Support Academic Research
Although some colleges offer training courses for counselors and treatment programs
for students with gaming-related disorders, we believe in research as that the most
important contribution at university level. Based on the performance and profitability
of each lottery INTRALOT donates funds to one of the leaders in the field, the
Harvard University Medical School Division on Addictions. The funds support ongoing
research and publication on addictive behavior, as well as the prevention and
intervention efforts that may prove useful in precluding problem and pathological
gaming. Prevention of problem and pathological gaming is especially important in
adolescents who often have the tedency to develop gaming problems.
Meanwhile, INTRALOT has developed a comprehensive responsible gaming strategy
to help reduce the harmful impacts of excessive gaming and encourage healthy
gaming choices.
Page 56
INTRALOT’s Responsible Gaming Strategy
Four main objectives are pursued through INTRALOT’s responsible gaming strategy:
1. Prevent the creation of excessive gaming by:
Promoting responsible gaming issues.
Informing players about the harmful impacts of problem gaming.
2. Reduce the incidence of problem gaming by:
Creating greater awareness of problem gaming issues, services, and risk
management strategies.
Encouraging players to know their limits, understand the associated risks and
play within reason.
3. Reduce harmful impacts of excessive gaming by:
Providing effective assistance to individuals experiencing gaming problems.
Reducing the consequences of problems related to gaming by providing
support to impacted families.
4. Ensure the delivery of gaming in a manner that encourages responsible gaming
and healthy choices by:
Informing stake holders and the industry on issues related to problem
gambling and responsible gaming.
Implementing new policies and practices to reduce the bad effects related to
excessive gaming (e.g., information material focused on the problem).
Improving the knowledge and ability of the gaming industry to deal with
gaming problems and provide responsible gaming opportunities through
training.
Promoting customer service and programs designed to encourage healthy
choices and responsible play.
Page 57
More specifically, INTRALOT has designed strategies for preventing excessive and
underage play, which involve the following key elements:
National Support Organizations
Game Research and Design
Marketing
Public Information and Education
Accessibility
Staff and Retailer Training
Monitoring for Effectiveness
Support for the Treatment of Players experiencing Problems
Responsible Gaming Initiatives
Being an active WLA Member as well as a member of the Social Responsibility forum
INTRALOT fully commits with the principles set out on the responsible gaming issue.
This commitment is demonstrated through the integration of the gaming market
standards and best practices in its core business values and practices.
INTRALOT promotes the concept of responsible gaming through participations in
relevant organizations and its support on research activities. The specific practices
followed in the context of its Lottery operations around the world are focused on
planning the business and marketing strategies to promote responsible and
recreational participation and on creating a safe environment for healthy and
enjoyable play. In cases where INTRALOT acts simply as the technology and service
provider instead of having the complete operational control, it fully complies with the
respective regulations and guidelines and provides its valuable experience for
consulting and promoting responsible gaming even to lottery jurisdictions which are
not very familiar with the issue.
Page 58
Memberships and Contributions
WLA & EL Member
INTRALOT promotes the concept of responsible gaming through participations in
relevant organizations and through its R&D activities on the issue. As an active WLA
and European Lotteries association (EL) member INTRALOT
commits to the principles set out for responsible gaming.
This commitment is demonstrated through the integration of
relevant gaming market standards in our core business values
and practices followed in the context of our Lottery operations
around the world.
INTRALOT fully commits with the responsible gaming principles,
regulations and guidelines associated with the WLA responsible
gaming framework, and provides its valuable experience for
consulting and promoting responsible gaming.
Moreover, being
an EL
member
INTRALOT
adheres
to
the
responsible gaming standards for Remote Gaming Channels which include the
following guidelines:
Proof of address
Age verification
Default limits on play, spend and/or losses that can be defined either by the
player or automatically by the system following default patterns
Players self-exclusion options
Visual information on the game screen, introducing session clocks, excess limit
warnings, cool offs/breaks between periods of play, etc.
Data protection controls
Display of value of wagers
Self-assessment and player evaluation on playing responsibly
Information on the lottery’s webpage containing:
Responsible gaming references and information links
Member’s responsible gaming policies
Sources
of
advice
and
support
(e.g.
helpline
numbers,
referral
treatment providers).
Page 59
to
Montana
the notion of responsible wagering INTRALOT USA, an INTRALOT subsidiary, recently
contributed to the Montana Council on Problem Gaming (MCPG).
The Montana Council on Problem Gaming is a non-profit agency dedicated to
alleviating gaming-related social and personal distress through the provision of
relevant support, referral services, and education to compulsive gamblers, their
families, and other concerned Montanans.
This program has trained therapists in 22 Montana communities, as the Council is
dedicated to fund treatment groups across Montana and provide training for mental
health professionals to treat these groups. The Council also provides education to
compulsive gamblers, their families and other concerned Montanans, has an active
website (www.mtcpgaming.com) and is an affiliate of the National Council on
Problem Gaming (www.ncpgaming.org).
Stuttgart Research Center on Gambling
the notion of responsible wagering, INTRALOT supports the recently established
Hohenheim University Research Center on Gaming in Stuttgart, which conducts
research on various economic and social aspects of betting games and their impact
on player behaviour, habits and lifestyle.
Established in December 2004 and being the only research centre of its kind in
Germany, the Gaming Research Centre covers, with the cooperation of several
institutes, diverse subjects on regulatory and consumer policy, consumer behaviour,
public and private law, finance and tax, applied mathematics, statistics and
econometrics, communication and marketing sciences, and theories of gaming.
Whereas other gaming research centres are focusing on either the psychological or
the legal aspects of gaming, the Gaming Research Centre at the University of
Hohenheim has a multidisciplinary approach having no less than 15 professors of
different disciplines as members.
Page 60
INTRALOT’s Responsible Gaming Technologies
Responsible gaming currently comprises a very significant challenge for Lotteries and
gaming organizations concerning the design and application of various technical
procedures and measures, oriented to provide player protection against excessive
betting (which may result in addiction) and at the same time exclude under-age
individuals from playing. INTRALOT’s framework for responsible gaming is depicted in
the following figure:
Responsible Gaming Framework
Based on the concepts derived from the above figure a Lottery organization targeting
to implement responsible gaming policies should follow practices encapsulating the
following guidelines:
Ensure that no illegal betting is conducted.
Prevent underage players from participating in gaming activities.
Protect under-age players from excessive participation or addiction to skill games.
Protect players from excessive betting resulting in addiction.
Page 61
INTRALOT has developed a series of technologies and methodologies to enable
strategies that contribute to limiting problem gaming issues. These technologies are
based on the analysis of game elements using Data Mining and Pattern Analysis
methodologies, the introduction of restriction mechanisms (applied on the amounts
wagered by registered players), as well as methods of communicating with the
players about how to play responsibly.
Responsible Gaming with LOTOSTM O/S
The central system’s software is based on the LOTOS™ O/S platform, the world’s
most advanced and expandable management platform for games and value added
services.
LOTOS™
O/S
provides
the
required
functionality for the business needs of Lottery
organizations. The system’s innovative open
architecture
provides
a
parametrical
potential
and
tremendous
LOTOS O/S offers features
designed to limit problem
gaming issues while
maintaining individual privacy.
unlimited
expandability.
The functions and parametric design of LOTOSTM O/S provide us with the capability to
implement our responsible gaming strategies in relation to the aforementioned
framework.
An overview of the responsible gaming strategies that may be implemented using
LOTOSTM O/S is presented below:
Subscription play using membership cards (both for participation through
traditional and alternative channels): This is probably one the most effective ways
for ensuring responsible gaming, as subscription play allows to record each
player’s transactions, while allowing spending limits to be applied. Players cannot
play if they exceed a pre-defined daily spending amount or if they have imposed
further self-limitations and self-exclusions through their account.
Controlling payment of winning tickets: Lotteries can decide to exclude
typical Points of Sale from paying out high-tier winnings and restrict them to
handling low- and middle-tier winnings. It can also offer guidance on responsibly
spending the winning amounts.
Page 62
Applying limits on each transaction or game: LOTOS O/S can be configured
to not allow a transaction to exceed a particular amount. For awareness purposes
any limits set can be displayed on the screen(s) of a POS.
Messaging in POS and on tickets: Continuous responsible gaming messages
can be displayed on POS screens (through LOTOS Horizon) as well as on receipts
(through LOTOS Messenger).
Performing research on registered player behavior: LOTOS Data Analyst
can assist in performing research on registered player behavior and send
individualized messages that greatly contribute to responsible gaming.
Registered Players
For registered player management LOTOSTM O/S features LOTOS Club. The player
registration and account activation process in LOTOS Club ensures the exclusion of
certain social groups, such as under-aged individuals, from participating in Lottery
games. In addition, LOTOS Club enables the Lottery
to analyze the behaviour exhibited by registered
players in terms of amounts spent, participation
frequency in Lottery games, preference to specific
games, etc.
LOTOS Data Analyst and its featured information
analysis applications, enable further analysis of data
pertaining to players, as well as the grouping of
players in low, medium and high-risk categories according to their predisposition for
excessive participation in Lottery games.
If a player’s participation in games is considered
excessive,
LOTOS
Messenger
can
send
fully
customized messages, which can be printed on the
receipts and can include advisory notes along with information on how to access
dedicated player support services. Furthermore, LOTOS Messenger is able to forward
relevant messages to a player’s mobile phone or e-mail.
Within our system, the highest monetary wagering limit allowed for a specific time
period (day, week, etc.) can be defined according to each Lottery’s policy or upon
players’ request.
Page 63
INTRALOT Terminals Responsible Play Features
INTRALOT retailer Point of Sales terminals are able to accept customer/player cards
(smart cards, magnetic cards and any type of customer cards with a printed
barcode). These cards enable the personalization of game orders, while applying
personalized responsible gaming practices and messages to the customer who can
have his/hers own profile on card and thus better keep track of gaming.
More specifically:
Via the data profile, each player can
restrict his weekly gaming budget to a
specific
customer
amount.
display
The
can
Terminal’s
display
a
responsible gaming message reminding
weekly gaming limits, while responsible
gaming messages can also be printed in
the receipts along with the remaining
amounts.
A player can self-exclude and block his
participation on specific gaming types for a specific number of days or up to a
specific date. Upon doing this, the terminal will not allow placing a game order
and will display the appropriate message or print a responsible gaming message.
While reading the profile data of the player’s card the terminal can identify the
name, address and age of the customer in order to ensure that minors do not
place any bets.
Page 64
Responsible Play Policies using LOTOSTM Horizon
One of the most effective and widely accepted
means
of
responsible
communicating
gaming
with
messaging
the
players
sent
is
through
Lottery Retail Outlets. LOTOS Horizon featured in LOTOS™ O/S allows defining and
sending messages to the terminals’ displays, SST and Ticket Checker displays, TVs,
and on printed receipts. The central management of these messages enables full
control on them, while their content can be easily and quickly customized according
to the needs of a group of retail outlets or even of a specific outlet.
LOTOSTM
Horizon
and
the
relevant
equipment deployed at retail outlets
Enabling full rich multimedia content
provide convenient management of TV
delivery, LOTOS Horizon offers the
spots
utilizing
streaming
video
and
animations that blend with rich-content
multimedia
messages
on
Lottery a unique tool for implementing
responsible gaming promotions.
responsible
gaming.
Thank you
Page 65

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