EUROPEAN STATE LOTTERIES AND TOTO ASSOCIATION

120 M
100 M
80 M
60 M
40 M
20 M
0 M
+ 73,1 M
+ 25,3%
+ 77,7 M
+ 30,5 M
+ 24,1%
Passage
l’
+ 9,4%
+ 79,5 M
+ 79,3 M
Focus of our marketing activity
1e 2e 3e 5e 10e
2007 Numero Sudoku: new 1,2,3 Adjugé: Tous derrière 7Extra:
Fétiche: product launch auction theme le XV de France: casino
relaunch St Valentin: game sport event game theme
calendar game (rugby) relaunch
Jan.- Millionnaire: St Valentin: Pékin 2008: 7Extra:
June relaunch calendar game sport event game 7 wonders of the
2008 Totemia : travel (Olympics) world theme
theme game relaunch
Enquête: police
investigation theme
game
Our range for the 2007-08 period:
1e 2e 3e 5e 10e
Jan. Goal Millionnaire Vegas Tous derrière 7Extra:
2007- Banco Astro Tac O Tac le XV de France: 7 wonders
June Morpion Black Jack 1,2,3 Adjugé Pékin 2008 of the world
2008 Numero Solitaire Totemia (Olympics)
range Fétiche Dédé
Super Bingo
XIII
Sudoku
Scrabble
St Valentin
Enquête
Number 4 11 4 2 1
of
products
+ 25,8%
12
+ 89,8 M
+ 87,6 M
P AN RAMA
+ 82,9 M
+ 74,1 M
1999 2000 2001 2002* 2003 2004 2005 2006 2007
Additional sales in Million uros
% of sales increase vs annual average week
Providing games at a high price point will
certainly not eliminate our offering of lower
cost instant tickets. French players are
still very much interested in cheap, accessible
tickets, which sometimes are their
exclusive purchase.
+ 25,2%
Scratch-off, another path to success
+ 28,7% + 28,4% + 28,5%
However, in 2007 and 2008, our marketing activity has been mainly focused on widening
and renovating our mid-price offer, and not the high price segment:
+ 25,1%
Besides, before launching a new game
format, we always consider any risk that
could create a discriminatory environment
against low-cost ticket consumers
who would no longer afford buying lottery
tickets. As a state-owned company, this is
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Instant Lotteries
not a risk we can take. Also, eliminating
low-price tier games would not be affordable:
There would be probably a risk of losing
consumers if we were to eliminate low
price tickets to exclusively concentrate on
a high price range.
The cheaper segment (1e tickets)
plays an important role in recruiting new
consumers.
The 2e segment is totally key since it
still accounts for the major part of our
business (58% of sales in 2006 and 55%
in 2007).
We are consolidating the 3 and 5e segments
by switching some of the products
from 2 to 3e (St Valentin for example)
and launching new 5e references.
With a high price ticket such as 7Extra, we
attract few consumers. Penetration is low:
6% versus 51% for total scratch-off game
range.
Consumers are regular players :
• who also buy 1, 2 and 3e tickets (70%
of them),
• who spend more than the average consumer:
6,7e per week versus 3,3e,
• who also buy more different tickets
than the average consumer: 10,7 versus
4,9 each year.
We do not consider that high price tickets
create a specific problem. However, it is
our duty to promote responsible behaviour
towards gaming whenever it is possible.
This is why we always mention our
“restez maîtres du jeu” (stay in charge)
claim on any print communication (tickets,
POS material, website...) and we always
make sure our commercials comply
with our advertising policy.
Always looking at launching higher
priced tickets is not our strategy. Overall,
we think we need to balance winning
odds and attractive jackpots to maximize
growth. While we are planning to launch
other high price tickets (some with much
higher top prize than current 7Extra), we
are also launching mid-price tickets with
very high winning odds (one ticket with
winning odds of 1 out 2 for example).
The objective is to answer different consumer
needs and profiles.