The World of NOVOMATIC 2015

THE WORLD OF

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FOREWORD 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 sense for technological innovation now presents itself as a leading European company with worldwide renown, employing over 23,000 people and generating revenues of more than 3.8 billion euros.

Currently, we are offering high-tech devices and customized services in the area of gaming across 80 countries.

Throughout its history, NOVOMATIC has never forgotten its origins, and the company remains firmly rooted at its home location in Lower Austria. Approximately 1,200 people are currently employed in Gumpoldskirchen.

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 that our company has to offer.

I hope you will enjoy the read.

Harald Neumann CEO NOVOMATIC AG

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Corporate profile

INNOVATION AND TRADITION When Prof. Johann F. Graf founded the NOVOMATIC Group back in 1980, it is unlikely that we could have foreseen how rapidly the company would develop over the coming decades. Today, 35 years later, NOVOMATIC is one of the largest gaming technology 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 one the one hand and a provider of firstclass gaming services on the other.

Today, the company has more than 23,000 employees around the globe. With production sites and technology centers in Austria, Germany, Great Britain, Spain, the Netherlands, 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 more than 3.8 billion euros in 2014.

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Business areas

DIVERSE COMPETENCIES NOVOMATIC is the largest gaming technology group in Europe. Its multiple roles as a producer and operator as well as a technology and service partner allow 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 world-wide.

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 online gaming developer 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.

Production

Operations

NOVOMATIC’s manufacturing subsidiary Austrian Gaming Industries GmbH (AGI) is the world’s leading manufacturer of gaming equipment

NOVOMATIC is the European market leader in the operation of electronic casinos NOVOMATIC operates 1,500 gaming facilities around the globe

NOVOMATIC is the technology leader in the area of server-based gaming and video lottery terminals (VLTs)

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)

The number of NOVOMATIC gaming terminals (rented out and operated in own casinos and electronic casinos) exceeds 230,000 units worldwide

With the ADMIRAL brand, NOVOMATIC is the market leader for sports betting facilities in Austria (200 locations)

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WORLDWIDE ACTIVITIES NOVOMATIC Group around the globe in numbers EMPLOYEES 2014 MORE THAN

23,000 RE VENUES 2014 MORE THAN

3.8 billion EUR

EBITDA 2014

760 million EUR

EBIT 2014

417 million EUR

NOVOMATIC activities

NOVOMATIC competence centers 8

BUSINESS ACTIVITIES IN

80 countries

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SUBSIDIARIES IN

50 countries

Corporate history

INAUGURATION

New NOVOMATIC HQ in Gumpoldskirchen, Austria

ESTABLISHMENT

of the sports betting company ADMIRAL SportwettenGmbH, Austria

MARKET ENTRY

Central, Eastern and Southern Europe

1996

by Professor Johann F. Graf

2011

1989

First NOVOMATIC dual screen terminals revolutionize the market

1991

INTERACTIVE REVOLUTION

FOUNDED

ESTABLISHMENT

Austrian Gaming Industries GmbH, Austria

ERWERB

Spielbank Berlin, Deutschland

AKQUISITION

G. Matica, Italien

DEVELOPMENT

BONDS

Two corporate bonds with a total volume of EUR 350 million

MARKET ENTRY Italy

ONLINE MARKET ENTRY

via acquisition of the Greentube Group, Austria

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2012

of the largest casino in South America

2010

2009

1980

1985

GROWING SUCCESS

ACQUISITION

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

INAUGURATION

2007

LÖWEN Entertainment GmbH, Germany gaming terminal manufacturer

2005

2003

ACQUISITION

CASINO ADMIRAL PRATER, Austria

AKQUISITION

Crown Technologies GmbH, Germany premium gaming terminal manufacturer

AKQUISITION

of the majority share in Astra Games Ltd., Great Britain

BONDS

Corporate bond with a volume of EUR 250 million

MARKET ENTRY

Netherlands, Romania (with VLTs)

2006

ACQUISITION

2014

2013

2004

Crown Gaming S.A.C.

REVOLUTION

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

NikiLauda becomes NOVOMATIC brand ambassador

BOND

Corporate bond with a volume of EUR 200 million

INAUGURATION

Hotel Casino FlaminGO, Macedonia

ESTABLISHMENT

Novo Gaming Netherlands B.V., Netherlands Novo Lottery Solutions GmbH, Austria Member of WLA, EL, CIBELAE and NASPL

Extreme Live Gaming Ltd., Great Britain

Eurocoin Gaming B.V., JVH exploitatie, Netherlands

ACQUISITIONS

Betware Holding hf., Iceland, development and sale of state-of-the-art gaming platforms and electronic lottery solutions

Luxury Leisure Ultd., Great Britain

Casino Tornado, , Lithuania, 4 casinos S.A.L. Leisure Ltd., Great Britain GiGames S.L., Spain SO.GE.M.A. S.p.A., Italy Elam Group Electronic Amusement B.V., Netherlands

MARKET ENTRY

Israel, Illinois, Costa Rica, Honduras, Guatemala

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Owner, Board of Directors and Chairman of the Supervisory Board

PEOPLE WITH VISIONS

Prof. Johann F. Graf

Senator Herbert Lugmayr

Founder and majority shareholder of the NOVOMATIC Group

Chairman of the Supervisory Board NOVOMATIC AG

Thomas Graf

Peter Stein

Harald Neumann

Ryszard Presch

CTO

CFO

CEO

Deputy CEO

NOVOMATIC AG

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Organigramm

GEMEINSAM ERFOLGREICH NOVOMATIC-Gruppe ACE Casino Holding AG (Switzerland, 100 %) casino operator Spielbank Mendrisio (100 %) Spielbank Locarno (91 %) Spielbank Bad Ragaz (33,3 %)

NOVO Invest GmbH (Austria, 100 %) NOVOMATIC AG-Konzern NOVOMATIC AG (Austria, 92 % direct and 8 % indirect Gryphon Invest AG) Holding Austrian Gaming Industries GmbH (Austria, 100 %) casino and gaming facility operator, R&D, production, rental, sales ADMIRAL Casinos & Entertainment AG (Austria, 100 %) gaming facility operator ADMIRAL Sportwetten GmbH (Austria, 100 %) sports betting provider

NOVOMATIC Group The NOVOMATIC Group includes NOVO Invest, the NOVOMATIC AG Group, EDP, ATSI, as well as the two Swiss sister holding companies ACE Casino Holding and Gryphon Invest, in which Prof. Johann F. Graf holds a majority stake.

HTM Hotel und Tourismus Management GmbH (Austria, 100 %) gaming facility operator, including Hotel ADMIRAL am Kurpark Greentube Internet Entertainment Solutions GmbH (Austria, 100 %) gaming solutions developer for the Internet, mobile devices and iTV I-New Unified Mobile Solutions AG (Austria, 76.8 %) developer of gaming, payment, mobile marketing and messaging solutions as well as all-in-one systems for mobile virtual network operators (MVNOs) LĂ–WEN Entertainment GmbH (Germany, 100 %) gaming facility operator, R&D, production, rental and sales Crown Technologies GmbH (Germany, 100 %) R&D, production, rental and sales Extra Games Entertainment GmbH (Germany, 95 %) gaming facility operator Spielbank Berlin Gustav Jaenecke GmbH & Co. KG (Germany, 92.04 %) casino operator NOVOMATIC Italia S.p.A. (Italy, 100 %) holding, rental Allstar S.r.I. (Italy, 100 %) gaming facility operator Astra Games Ltd. (Great Britain, 100 %) R&D, production, sales Bell-Fruit Group Ltd. (Great Britain, 100 %) producer Gamestec Leisure Ltd. (Great Britain, 100 %) rental Luxury Leisure Ultd.

(Great Britain, 100 %) gaming facility operator Alfor SIA (Latvia, 60 %) gaming facility operator Eurocoin Gaming B.V. (Netherlands, 100 %) sales JVH exploitatie B.V. (Netherlands, 100 %) production, rental and sales Elam Group Electronic Amusement B.V. (Netherlands, 100 %) production, sales NOVOMATIC Gaming Spain S.A. (Spain, 100 %) holding, sales GiGames S.L. (Spain, 80 %) production, sales Betware Holding hf.

(Iceland, 100 %) developer of gaming platforms and electronic lottery solutions and lottery terminals, production, sales NOVOMATIC Americas Holding Inc. (USA, 100 %) sales

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Gryphon Invest AG (Switzerland, 100 %) European Data Project s.r.o. (EDP) (Czech Republic, 100 %) production operations, casino and gaming terminal operations ATSI S.A. Advanced Technology Systems International (Poland, 82 %) technology center

NOVOMATIC AG Group The NOVOMATIC AG Group is a part of the NOVOMATIC Group and includes the main subsidiaries listed here. In addition to this, the NOVOMATIC AG Group is active in Macedonia, Romania, Croatia and other CEE and SEE countries through subsidiaries.

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Innovations

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. Year after year, the company’s investments in the area of research & development by far exceed the industry average.

19 technology centers in ten countries mainly focus on software development and programming. In addition to this, NOVOMATIC cooperates closely with several leading technical universities.

This strategy pays off for the entire Group: NOVOMATIC currently holds approximately 3,250 intellectual property rights such as patents, trademarks and designs.

NOVOMATIC is continuously expanding its competence regarding lottery services. In this domain, the Group leverages its own experience, as well as the comprehensive know-how of the Icelandic lottery technology provider Betware.

With this, the company is well-equipped for the future. There is no doubt that NOVOMATIC 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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Demonstration Ablauf/Verwendung der ADMIRAL Karte

Monitoring Electronic casino Access control

Registration

Detailed information is available at: www.novomatic.com/responsible-gaming www.responsible-gaming.info responsible.gaming@novomatic.com

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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.

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.

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 has been 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.

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 behaviorand shows where you can find help, if necessary.

iOS QR Code

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Android QR Code

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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 sports-related 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 LebenshilfeNiederösterreich, from the Art Brut museum in Gugging to the VereinWirtschaftfür Integration (Association of Business for Integration).

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 www.novomaticforum.com csr@novomatic.com

Three-time Formula 1 champion NikiLauda has been NOVOMATIC‘s brand ambassador since January 2014.

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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 FLOW WORLDWIDE 2014 IN MILLION EUR

38.3

Payments to investors

Tax payments

367.7

Salaries & wages

411.0

Total

1,629.8

Payments to suppliers

252.8

Material & paid services

560.0

CASH FLOWS AUSTRIA 2014 IN MILLION EUR

36.7

Payments to investors

Tax payments

122.5

Salaries & wages

147.5

Total

646.7

143.9

Material & paid services

This position also includes other, non-incomerelated taxes, fees and other duties (e.g. property taxes, vehicle taxes, rental contract fees, etc.).

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Payments to suppliers1

196.1

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Contact

WE ARE OPEN FOR DIALOG Group Communications Dr. Hannes Reichmann (head of department) +43 2252 606 680 hreichmann@novomatic.com Alexandra Lindlbauer +43 2252 606 842 alindlbauer@novomatic.com info@novomatic.com Imprint Owner, editor and publisher: NOVOMATIC AG Wiener StraĂ&#x;e 158 2352 Gumpoldskirchen Commercial register number: FN69548b +43 2252 606 0 www.novomatic.com Editorial department Dr. Hannes Reichmann, Alexandra Lindlbauer Design CIDCOM Werbeagentur GmbH Photos Krischanz und Zeiller OG, JĂźrgen Knoth, Nenad Djedovic, museum gugging, NOVOMATIC Gender-specific terms in this publication shall refer equally to women and men.

As of: 07/2015

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www.novomatic.com