Aristocrat Acquisition of VGT Presentation
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES.
Specific risks
Changing economic conditions and other factors affecting the gaming industry
Demand for our products and services can be dependent upon favourable conditions in the gaming industry, which is highly sensitive to players' disposable
incomes and gaming activities. Discretionary spending on entertainment activities could decline for reasons beyond the Group's control; for example, due to
negative economic conditions or natural disasters.
A decline in the relative health of the gaming industry and the difficulty or inability of our customers to obtain adequate levels of capital to finance their ongoing
operations might reduce the resources available to purchase products and services, which could affect Group revenues.
To address this we are working to develop and deliver new and innovative technologies and products to meet customer needs and working to partner with our
customers to provide value adding solutions.
Increasing competition
Competition in the gaming industry (both land-based and online) has intensified from the consolidation of existing competitors as well as the entry of new
competitors. Increasingly, price, reliability and product innovation are among the factors affecting a provider's success in selling its products.
As traditional land-based markets continue to mature, the Group's success and profitability is dependent in part on our ability to successfully enter new segments in
existing markets, new markets as well as new distribution channels, such as mobile and online gaming.
To address this we continue to invest in key skills and talent and have also strengthened our insights function to enhance our ability to produce innovative new
product portfolios to drive entry into new markets and support share growth.
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Increased gearing levels
The increase in gearing to fund the transaction leaves the Group with a level of leverage which is higher than historical periods. Higher gearing levels leaves the
Group more exposed to movements in interest rates. This will be addressed by moving back towards more historic levels of leverage over time.
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