The World of NOVOMATIC 2014

THE WORLD OF

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WINNING TECHNOLOGY. FROM AUSTRIA

foreword Approximately 1,200 people are currently employed in Gumpoldskirchen.

Dear Reader,

Over the past three decades, the NOVOMATIC Group has enjoyed a success ­ story that is unparalleled in Austria.

A company which in 1980 was founded with no more than a dozen employees and a thirst for technological innovation now presents itself as a leading European company with international reputation, employing more than 20,000 people and generating revenues of 3.5 billion euros. Currently, we are offering high-tech devices and customized services in the area of gaming in 80 countries.

Throughout its history, NOVOMATIC has never forgotten its roots, and remains firmly rooted at its home location in Lower Austria.

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Of course, we are always very aware of the fact that we do business within a highly sensitive industry. This is why social responsibility and player protection will always remain at the core of anything we do. We want to help shape society by means of our comprehensive sponsoring program in the areas of culture, science and sports.

The following pages will offer you insights into the world of NOVOMATIC – be prepared to be surprised by the many different facets our company has to offer. I hope you will enjoy the read.

Mag. Harald Neumann CEO novomatic ag

Corporate Profile

INNOVATION AND TRADITION

When Prof. Johann F. Graf founded the ­NOVOMATIC Group back in 1980, it is unlikely that even he could have foreseen how rapidly the company would develop over the coming decades. Today, 34 years later, NOVOMATIC is one of the largest integrated gaming companies in the world and the undisputed number one in Europe.

The foundation for our worldwide success can be found in our duality as a manufacturer of innovative gaming equipment on the one hand and a provider of first-class gaming services on the other.

Today, the company has more than 20,000 employees worldwide. With production sites and technology centers in Austria, Germany, Great Britain, Hungary, Russia, Poland, the Czech Republic, Iceland and Argentina, as well as business activities in 80 countries, the NOVOMATIC Group’s three holding companies generated cumulated total revenues of 3.5 billion euros in 2013.

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WINNING TECHNOLOGY. FROM AUSTRIA

Business Areas

DIVERSE COMPETENCIES

Production NOVOMATIC’s manufacturing subsidiary Austrian Gaming Industries GmbH (AGI) is the world’s leading manufacturer of gaming equipment NOVOMATIC is the technology leader in the area of server-based gaming and video lottery terminals (VLTs) The number of NOVOMATIC gaming devices (rented out and operated in own casinos and electronic casinos) exceeds 230,000 units worldwide.

Operations NOVOMATIC is the European market leader in the operation of electronic casinos NOVOMATIC operates 1,500 gaming facilities worldwide NOVOMATIC operates the casino with the highest revenues in Germany (Berlin), in the Czech Republic (Hate) and one of the casinos with the highest revenues in Switzerland (Mendrisio) With the ADMIRAL brand, NOVOMATIC is the market leader for sports betting facilities in Austria (205 locations)

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NOVOMATIC is the largest integrated gaming group in Europe. Its double role as a manufacturer and operator allows the company to offer all aspects of gaming from a single source.

On the one hand, NOVOMATIC stands for the development, manufacturing and distribution of innovative gaming equipment, such as slot machines, video poker devices and video lottery or multiplayer terminals. On the other hand, the Group operates approximately 1,500 electronic casinos, regular casinos and sports betting facilities worldwide.

As a third pillar, NOVOMATIC develops online games for licensed partners, for example in Great Britain. In order to expand this promising business area, the Group acquired the renowned Austrian games producer Greentube in 2010.

In order to further expand the competencies in the area of development and operations, both the Austrian technology company I-New and the Icelandic lottery technology provider Betware were integrated into the NOVOMATIC Group in 2013.

Worldwide Activities

125 SUCCESS STORIES – AND COUNTING

NOVOMATICActivities NOVOMATICProduction and R&D locations

Business activities in approximately

80 countries

Subsidiaries in

45 countries

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WINNING TECHNOLOGY. FROM AUSTRIA

NOVOMATIC worldwide in numbers Employees in 2013 more than

20,000 Re venues 2013 approximately

3.5 billion euros

ebitda 2013

597 million euros

EBIT 2013

250 million euros

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Corporate History

GROWING SUCCESS

1980

ESTABLISHMENT

1991

1996

Establishment

ESTABLISHMENT Austrian Gaming Industries GmbH, AT

of the sports betting company ADMIRAL Sportwetten GmbH, AT

Founded by Prof.

Johann F. Graf

MARKET ENTRY

Revolution

Central, Eastern and Southern Europe

First NOVOMATIC multi player devices revolutionize the market

1989

1995

2010

2008

BONDS

INAUGURATION

2 corporate bonds with a total volume of 350 million euros

Monticello Grand 足C asino & 足Entertainment World, Chile with Sun International and other partners

Acquisition

Crown Technologies GmbH (German producer of premium gaming devices), D

Acquisition

Crown Gaming S.A.C., Peru

2007

MARKET ENTRY Italy

INAUGURATION NOVOMATIC HQ in Gumpoldskirchen, AT

ENTRY ONLINE MARKET Through acquisition of the Greentube Group, AT

2009 8

WINNING TECHNOLOGY. FROM AUSTRIA

In its relatively short 34-year history, the NOVOMATIC Group has become one of the top players of the industry and the clear number one in Europe

2006

2004

Revolution

ACQUISITION

LÖWEN Entertainment ­revolutionizes the German gaming market with its new multi-game concept NOVOLINE

of the majority share in Astra Games Ltd., UK

ACQUISITION

INAUGURATION

LÖWEN Entertainment GmbH, D (German producer of gaming devices)

CASINO ADMIRAL PRATER, Vienna, AT

2005

2003

BONDS

2012 Akquisition

Substantial assets of the Danoptra Gaming Group (Bell-Fruit Group and Gamestec Leisure Ltd.), UK

ACQUISITION

G. Matica, Italy 80.94 %

2011 9

MARKET ENTRY

Netherlands, with VLTs in Romania

ACQUISITIONS

I-New Unified Mobile Solutions AG (Austria, 76.8 %) Eurocoin Gaming B.V., JVH (Netherlands, 100 %)

Spielbank Berlin, D 92.04 %

ACQUISITION

Corporate bond with a volume of Euro 250 million

MARKET ENTRY in the USA

Betware (Iceland, 90 %) Development and sale of state-of-the-art gaming platforms and electronic lottery solutions

2013

Owner, Board of Directors & Chairman of the Supervisory Board

PEOPLE with a Vision

Prof. Johann F. Graf

Senator Herbert Lugmayr

Founder and majority shareholder of the NOVOMATIC Group

Chairman of the Supervisory Board of NOVOMATIC AG

Mag. Thomas Graf

DI Ryszard Presch

Mag. Peter Stein

Mag. Harald Neumann

CTO

Deputy CEO

CFO

CEO

novomatic ag 10

WINNING TECHNOLOGY. FROM AUSTRIA

Organizational Chart

SUccessful Together NOVOMATIC Group ACE Casino Holding AG (Switzerland, 100 %) casino operator Casino Mendrisio (100 %) Casino Locarno (54.5 %) Casino Bad Ragaz (33.3 %)

NOVO Invest GmbH (Austria, 100 %)

NOVOMATIC AG Group NOVOMATIC AG (Austria, direct 92 % and indirect 8 % Gryphon Invest AG) Holding

Austrian Gaming Industries GmbH (Austria, 100 %) casino and gaming facility operator, R&D, production, rental, sales

Gryphon Invest AG (Switzerland, 100 %)

European Data Project s.r.o. (EDP) (Czech Republic, 100 %) production operations, casino and gaming machine operations

ADMIRAL Casinos & Entertainment AG (Austria, 100 %) gaming facility operator

ATSI S.A.

ADMIRAL Sportwetten GmbH

Advanced Technology Systems International S.A. (Poland, 82 %) technology center

(Austria, 100 %) sports betting provider

HTM Hotel und Tourismus Management GmbH (Austria, 100 %) casino operator, including Hotel Admiral am Kurpark and Hotel Sacher Baden in Baden

Greentube Internet Entertainment Solutions GmbH (Austria, 100 %) gaming solutions developer for the Internet, mobile devices, iTV

I-New Unified Mobile Solutions AG (Austria, 76.8 %) developer of gaming, payment, mobile marketing and messaging solutions and more, as well as all-in-one systems for mobile virtual network operators (MVNOs)

Spielbank Berlin Gustav Jaenecke GmbH & Co. KG (Germany, 92.04 %) casino operator

LĂ–WEN Entertainment GmbH (Germany, 100 %) gaming facility operator, R&D, production, rental, sales

Crown Technologies GmbH (Germany, 100 %) R&D, production, rental, sales

NOVOMATIC Italia S.p.a.

(Italy, 100 %) gaming facility operator, rental

Astra Games Ltd. (Great Britain, 100 %) R&D, production, sales

Gamestec Leisure Ltd. (Great Britain, 100 %) gaming facility operator

Bell-Fruit Games Ltd. (Great Britain, 100 %) producer

Alfor SIA (Latvia, 60 %) gaming facility operator

NOVOMATIC Group The NOVOMATIC Group includes Novo Invest, the NOVOMATIC AG Group, EDP and ATSI, as well as the two Swiss sister holding companies ACE Casino Holding and Gryphon Invest, which are owned

by Prof. Johann F. Graf.

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JVH (The Netherlands, 100 %) gaming facility operator, R&D, production, rental, sales

Eurocoin Gaming B.V. (The Netherlands, 100 %) sales

Betware Holding hf.

(Iceland, 90 %) developer of gaming platforms and electronic lottery solutions and lottery terminals, production, sales

NOVOMATIC AG Group The NOVOMATIC AG Group is a part of the NOVOMATIC Group and includes the main subsidiaries such as Austrian Gaming Industries (AGI), ADMIRAL Casinos & Entertainment (ACE), ADMIRAL Sportwetten, Greentube Internet Entertainment Solutions, HTM Hotel und Tourismus Management, Spielbank Berlin, LĂ–WEN Entertainment, Crown Technologies, NOVOMATIC Italia, Astra Games, Alfor, Gamestec Leisure, Bell-Fruit Games, Eurocoin, JVH and Betware.

Innovation

INVESTMENT IN THE FUTURE NOVOMATIC’s innovative drive has always been at the core of the company’s success.

This is why the area of Research & Development plays such an important role within the Group.

The manufacturing subsidiary Austrian Gaming Industries GmbH (AGI) is the world market and technology leader in the manufacturing of gaming devices. Year after year, the company’s investments in the area of research & development by far exceed the industry average.

14 technology centers in nine countries mainly focus on software development and programming. In addition to this, NOVOMATIC cooperates closely with some of the leading technical universities in these countries.

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WINNING TECHNOLOGY. FROM AUSTRIA

This strategy pays off for the entire Group: NOVOMATIC currently holds more than 2,600 intellectual property rights such as patents, trademarks and designs.

With this, the company is well-equipped for the future. There is no doubt that AGI will continue to have a strong influence on the rapidly advancing technological development within the industry. This is what our corporate motto stands for: „NOVOMATIC – Winning Technology“

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Player Protection & Responsible Gaming

We care to be fair

NOVOMATIC is active in a highly sensitive industry. As a regulated offering, gaming and betting provide exciting entertainment and fun leisure activities. However, they also entail the risk of developing into a problematic passion.

That is why player protection has utmost priority for NOVOMATIC. The company has collaborated closely with independent addiction experts in order to develop a comprehensive concept for the prevention of gaming addiction which is continuously improved and evaluated by external experts.

Our measures always focus strongly on information, prevention and counseling.

Demonstration Ablauf/Verwendung der ADMIRAL Karte

Safety functions Electronic Casino

Apart from ongoing employee training, we train our own prevention representatives in collaboration with Europe’s most modern addiction clinic, the Anton Proksch Institute in Vienna. These representatives offer our guests competent support on site.

ADMIRAL traffic light system

Registration

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WINNING TECHNOLOGY. FROM AUSTRIA

NOVOMATIC has developed an innovative access control system: the ADMIRAL Card.

This personalized access card is planned to be deployed in all of ADMIRAL’s Austrian facilities as soon as possible. It offers seamless protection of players and minors and excludes pathological players from participating in gaming activities by means of a traffic light system.

An important step in improving player protection was the establishment of a central and toll-free helpline (+43 800 205 242) which NOVOMATIC set up together with the Medical University of Vienna and the Vienna General Hospital.

i NOVOMATIC’s most recent development aimed at raising consciousness is the responsible gaming app – the RG Coach. The RG Coach provides information on important facts related to the subject of gaming, supports you in monitoring your gaming capital, provides feedback on your gaming behavior and shows where you can find help, if necessary.

(Available only in German)

iOS QR-Code

Detailed information is available at: www.novomatic.com/responsible-gaming/en www.responsible-gaming.info (in German) responsible.gaming@novomatic.com 15

Android QR-Code

Social Commitment

WE CONTRIBUTE IN SHAPING SOCIETY For us, social responsibility does not end with player protection. We apply a broader approach to this term and try to actively shape and strengthen our civil society. That is why NOVOMATIC promotes numerous social, artistic, cultural, scientific, economic and sportsrelated initiatives.

The list of sponsoring activities is as diverse as the company itself. It ranges from the scholarship program at the Vienna State Opera to Lebenshilfe Niederösterreich, from Ö1 (Austrian Radio Station) to the Art Brut museum in Gugging, from the Verein Wirtschaft für Integration (Association of Business for Integration) to the promotion of tennis as a mass sport.

brings culture into play

With the Novomatic Forum, located immediately across from the world-famous Vienna Secession, we have furthermore created a meeting place where culture, science, media and business can come together and enter into a dialog.

Further information on our activities and projects is available at: www.novomatic.com/csr/en www.novomaticforum.com/en csr@novomatic.com 16

Oswald Tschirtner „Stehende und gebeugte Menschen“ © Private foundation for artists from Gugging

WINNING TECHNOLOGY. FROM AUSTRIA

Since January 2014, the three-time Formula 1 champion Niki Lauda has been NOVOMATIC’s brand ambassador.

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Responsibility

THINKING ABOUT TOMORROW TODAY As one of Austria’s most successful companies, NOVOMATIC is a vital contributor to regional and national value creation. Taxes, wages and salaries, as well as payments to suppliers and business partners, strengthen the local economy. With the expansion of our headquarters in Gumpoldskirchen and the conscious decision against outsourcing, we secure highly qualified jobs in Austria, even in difficult economic times. We also assume ecological responsibility by continuously optimizing the environmentally sound manufacturing of our products, minimizing our energy usage and promoting awareness among our employees. Because for NOVOMATIC, sustainability is a clear strategic decision.

CASH FLOWS WORLD WIDE 2013

CASH FLOWS AUSTRIA 2013

in miLLion eur

in miLLion eur

39.3 Taxes

Payments to capital providers

Wages and salaries

Payments to suppliers

313.1

343.3

Total

1,483.3 552.1

235.5 Materials and purchased services

Payments to capital providers

Wages and salaries

Payments to suppliers

37.6

125.4

110.8

Taxes

Total

590.1 178.1

138.3 Materials and purchased services

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WINNING TECHNOLOGY. FROM AUSTRIA

Contact

WE ARE OPEN FOR DIALOG Group Communications Dr. Hannes Reichmann (Head of Department) +43-2252-606-680 hreichmann@novomatic.com info@novomatic.com Imprint Owner, editor and publisher: NOVOMATIC AG Wiener Straße 158 2352 Gumpoldskirchen Austria Commercial register number: FN69548b +43-2252-606-0 www.novomatic.com Editorial Department Dr. Hannes Reichmann Design CIDCOM Werbeagentur GmbH Photos Krischanz und Zeiller OG, Jürgen Knoth, Nenad Djedovic, museum gugging, NOVOMATIC Gender-specific terms in this publication shall refer equally to women and men.

Dated: 10/2014

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www.novomatic.com