1. Retail Executive Summit Nov. 5, 2013 May Scheve Reardon Executive Director, Missouri Lottery

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3. It Only Takes One!

4. PGRI Retail Executive Summit

5. Lotteries & Retailers Share the Same Goals, Challenges and Opportunities Mutual Goals 1.Build the brand 2.Attract new customers 3.Increase sales 4.Improve the bottom line

6. Mutual Challenges 1.Aging player base 2.Fewer cash customers 3.Lack of Lottery standardization 4.New distribution channels

7. Consumer Adoption of Technology Is Accelerating

8. Lottery Player Base Is Aging & Shrinking

9. Fewer Customers Carry Cash

10. There is a Lack of Standardization in the Lottery Business Model

11. There is a “Perceived Threat” of Alternative Sales Channels

12. Mutual Opportunities 1.Promote the Lottery brand and loyalty. 2.Introduce new technology and distribution channels. 3.Work to standardize Lottery operations.

13. Explore New Ways to Promote the Brand and Loyalty CY2012 contribution to education: $681,298 Mr. T’s – Cardwell, Mo. “We are so proud of our store’s sales and the support to education that we’ve generated. We hope to do even better next year.” -Nicole Poynor

14. Lottery Advertising Has a Positive Impact on “Brand Relevance”

15. Advertising Impacts Lottery Relevance www.smari.com Cell Phone100 Travel86 Google86 Cable TV85 Facebook 77 Coca-Cola 72 Missouri Lottery 71 McDonald’s 71 NFL 70 Casinos 61 Beer 57 Starbucks 54 40 30 20 10 Cell Phone100 Cable TV87 Google85 Travel85 Facebook76 Coca Cola71 McDonald's 70 NFL67 Missouri Lottery66 Casinos58 Beer56 Starbucks49 30 20 10 FY12 FY13 Philanthropic ads Play It Forward has had a significant positive impact on the perception of Lottery relevance.

16. Retailers Are Changing and Embracing Consumer Demands Self-checkout/self-select and other operational cost reduction initiatives Digital in-store display and endless aisles Multi channel initiatives o Use of mobile in store o Click and pick Bring the store to the shopper

17. Use New Technology and Distribution Channels to Capture New Customers, Sales & Commissions

18. Work Together To Improve Standardization Of Lottery Licensing, Distribution and Accounting

19. Lottery and Retailer Collaboration Has Led to Record Sales and Commissions

20. How Can We Step Up Collaboration? What’s In Our Future?

21. Brick-and-Mortar Retail Will Always Be #1 To Lotteries CY2012 contribution to education: $209,273 Hy-Vee #1552 – St. Joseph, Mo. “We are so proud to be able to help sponsor and contribute to education. We measure our success not just on sales and profit, but also on how we improve the communities we are part of.” - Brad McAnally, Store Director

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23. Thank You!