1. Presentation to Joint Committee on Finance, Public Expenditure & Reform Donal Connell, Chairman, An Post National Lottery Company December 2011

2. Donal Connell Appointed Chief Executive of An Post and Chairman of the An Post National Lottery Company in 2006 Bachelor of Engineering ( U.C.D.), Chartered Engineer, Fellow of the Institution of Engineers of Ireland Held senior management positions in major multinational companies 3COM Corporation, Maxtor Corporation, Unitrode Corporation December 2011Strictly Confidential - Limited Distribution

3. Donal Connell Vice President of 3COM Corporation, responsible for the company’s manufacturing, distribution and retail businesses in the Europe, Middle East and Africa region. Similar role with Maxtor Corporation Track record of consistent achievement at the An Post National Lottery Company and An Post itself December 2011Strictly Confidential - Limited Distribution3

4. General Overview

5. December 2011Strictly Confidential - Limited Distribution Company Structure An Post National Lottery Company (NLC) is a subsidiary of An Post. 80% of shares owned by An Post, 20% owned by Minister for Public Expenditure and Reform. NLC was established in 1986 under the terms of the National Lottery Act (1986). Commenced trading 23 rd March 1987.

6. December 2011Strictly Confidential - Limited Distribution6 National Lottery Licence Extension of 18 months up to 30 th June 2013 recently announced by DPER Key Licence Conditions: –All NLC games require approval by the Minister for PER –Operating Cost % and Prize %, number of Agents are controlled –Management fee paid to An Post –Minister owns the assets of the business including all intellectual property

7. December 2011Strictly Confidential - Limited Distribution The Board The Board consists of 7 Directors appointed by the Minister for Public Expenditure and Reform. 3 Directors and chair nominated by An Post. 3 Directors nominated by the Minister for Public Expenditure and Reform.

8. December 2011Strictly Confidential - Limited Distribution Company Overview 2.2 million adults (63%) are National Lottery players. 1.5 million adults (42%) participate each week. The National Lottery has 103 employees. 3,800 retail sales agents €420m (55%) prizes €244m (31%) good causes €48m (6%) Agent commission €60m (8%) other operating costs

9. Big numbers…. Good Causes Winners

10. Promoting Beneficiary Funding National Lottery funding is distributed by Government to the following areas: -Sport & Recreation -Health & Welfare -Arts & Culture -Irish Language Awareness of beneficiary funding is an important motivating factor for people to play our games. December 2011Strictly Confidential - Limited Distribution

11. December 2011Strictly Confidential - Limited Distribution Irish Kidney Association Irish Guide Dogs Irish Kidney Association Everton Football Club, Cork

12. December 2011Strictly Confidential - Limited Distribution Wexford Festival Opera Raidió Rí-Rá Limerick Youth Service Carlow Gymnastics Club

13. Financials

14. December 2011Strictly Confidential - Limited Distribution Games…percent of sales Lotto ‘Family’56% Scratchcards / Internet Instant Win20% EuroMillions Games17% Monday Million & Monday Million Plus3% Other Games4%

15. 2010….figures Sales €772m Prizes €420m Agent commission €48m Other operating costs €60m Contribution to Good Causes €244m Total Return to Community €718m As % of Sales 93.0% December 2011Strictly Confidential - Limited Distribution

16. International Comparisons

17. Per Capita Sales Our flagship Lotto is ranked 5 th, within Europe, ahead of the bigger European lotteries such as France and UK Lotto is also ranked 8 th in the world with per capita sales of €129 in 2010. Compared to Camelot in the UK, NLC sales per capita are consistently 47% and more ahead. December 2011Strictly Confidential - Limited Distribution

18. Funds for Good Causes NLC ranks highly when compared to our European counterparts with per capita contribution of €54 in 2010. NLC ranked 8 th of 41 European Lotteries, considerably higher than the EU average of €44 and the European average of €29. December 2011Strictly Confidential - Limited Distribution

19. Sales per employee One of the key indicators of efficiencies is sales per employee. For 2010, NLC generated sales of €7.5m per employee which compares favourably with our European counterparts. NLC ranked first on the sales per employee metric when compared to lotteries in European countries of similar population to Ireland (i.e. in the 3 to 6 million range) December 2011Strictly Confidential - Limited Distribution

20. Future Opportunities

21. NLC Product Roadmap 2003 - 2010 December 2011 20032004200520062007200820092010

22. National Lottery Play Online Lotto Online Playslip Currently offers Lotto, EuroMillions and a range of Instant Win Games

23. Limited Distribution – Company Confidential Homepage Number Checker Prizes & Results Number Generator National Lottery Mobile Over 120,000 downloads of iPhone App since launch in 2010

24. December 2011Strictly Confidential - Limited Distribution Key components for future growth. Built technology: Provide Lotto, EuroMillions via online/mobile phone. An appropriate selection of instant games. Focus on attracting new generation of adult players. Working closely with the Department in the development of this channel consistent with our Responsible Gaming Policy We plan to broaden the selection of games on offer as well as providing improved convenience for our customers Internet & Mobile Phone Games

25. December 2011Strictly Confidential - Limited Distribution As part of EuroMillions group we are currently working to develop a new worldwide lottery game concept World Game to launch in 2014 This exciting project will deliver a compelling game with a prize structure that no single lottery could deliver on their own or as part of existing Multi-jurisdictional communities. And it will generate incremental revenue for Good Causes Lotteries from Europe, North America, Australia are collaborating in planning this unifying concept World Game

26. 14th December 2011Strictly Confidential - Limited Distribution Facebook page to launch in January 2012. Social media strategy will strengthen our interaction with players using these new media channels. Social Media

27. 14th December 2011Strictly Confidential - Limited Distribution Utilising our existing nationwide broadband network to our 3,800 agents we have commenced a programme to install realtime Digital messaging. By January 2012 1,000 of our top agents will have Screens featuring jackpot amounts, latest game promotions, good cause information and responsible gaming messages. Digital Signage

28. Summary

29. Summary Money for Good Causes 1987-2010…€3.7bn More than a €1billion in the last 4 years Track record of innovation and efficiency Successful strategy formulation and implementation December 2011Strictly Confidential - Limited Distribution