Aristocrat Acquisition of VGT Presentation
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Specific risks
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Foreign exchange
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar and
Japanese yen.
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the entity's functional
currency. The risk is measured using sensitivity analysis and cash flow forecasting. The Group's foreign exchange hedging policy is to reduce the foreign exchange
risk associated with transactional exposures, primarily over a 12 month horizon. External foreign exchange contracts are designated at the Group level as hedges of
foreign exchange risk on specific foreign currency denominated transactions.
Ability to manage and frequently introduce innovative products on a timely basis
The Group's success is dependent on its ability to develop and sell new products that are attractive to casino operators and other gaming enterprises and their
customers, for both land-based and online gaming operations.
If the Group's land-based or online gaming content does not meet or sustain revenue and profitability expectations, it may be replaced or we may experience a
reduction in revenue generated and an increased exposure to obsolete inventory. Therefore, success depends upon the Group's ability to continue to produce
technologically sophisticated land-based and online products that meet its customers' needs and achieve high levels of player appeal and sustainability.
Further, newer products are generally more sophisticated than those produced in the past and the Group must continually refine design, production and approval
capabilities to meet the needs of its product innovation.
The Group has invested, and intends to continue to invest, significant resources into its insights function, research and development efforts and the acquisition of
key talent to mitigate this risk.
Systems and technology
Aristocrat relies on the continuing operation of its information technology platforms. Interruption, compromise or failure of these platforms could affect Aristocrat's
ability to service its customers effectively.
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