RETAIL DISRUPTION A R T K I U T T U S V P , L A Z L O 3 2 6 - PowerPoint PPT Presentation

RETAIL DISRUPTION A R T K I U T T U S V P , L A Z L O 3 2 6 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 1

RETAIL DISRUPTION LaFleurs 14 May 2019 Proprietary & Confidential 28 Feb. 2018 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 2

RETAIL DISRUPTION • Am Amaz azon on wi will ope ll open 3,0 n 3,000 00 Am Amaz azon Go st on Go store. ore. • Am Amaz azon Go st on Go stores ores ar are e se sellin lling g sn snacks acks an and fre d fresh sh, , pa pack ckag aged ed fo food od. . • Dir Direc ectly tly co compe pete te ag again ainst st C- st stores ores an and gro d grocery. cery. Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 3 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu

AMAZON GO Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 4

RETAIL CHALLENGES • Br Brisk isk co comp mpet etition ition fro from m Amaz Am azon and on and Eu Euro rope pean an gr groc ocers. ers. • Li Lines nes, , lab labor or & & los loss. s. • De Delic licate ate ba balan lance ce be betw twee een n co compe peti titive tive pr pric icin ing g an and d se servic rvice. e. • Tr Tryi ying ng to to imp impro rove ve th the e custo cu stomer mer ex expe peri rien ence. ce. Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 5

WALMART SCAN & GO Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 6

KROGER SCAN, BAG, GO LaFleurs 14 May 2019 Proprietary & Confidential 28 Feb. 2018 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 7

MEIJER SHOP & SCAN LaFleurs 14 May 2019 Proprietary & Confidential 28 Feb. 2018 Proprietary & Confidential Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 8

ALBERTSONS CLERKLESS CHECKOUT Alb Alber ertsons tsons Te Team ams Up wit s Up with Mic h Microsof rosoft t to to Devel Develop op Che Check ckout out-Free Free St Stor ores es Partnering with this tech giant, the grocer positions itself to surpass Amazon with a fresh take on brick and mortar. Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 9

7-ELEVEN SCAN & PAY Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 10

ENMARKET SCAN & PAY Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 11

SKIP & SG900 MOBILE SELF CHECKOUT Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 12

AUTOMATED C-STORES - CHINA Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 13

CLERKLESS AUTOMATION Proprietary & Confidential 28 Feb. 2018 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 14

IMPACT ON BRICK & MORTAR LOTTERY SALES • Br Brick ick & M & Morta ortar r sa sales les ar are our e our Bre read ad & B & But utter. ter. • Cler lerks ks ar are bein e being repl g replac aced ed wi with th au auto tomat mation. ion. • Los ose e ex expo posure ure to to pape paper r lot lotte tery ry pr prod oduc ucts. ts. • Ret Retail ail tr transa ansactions ctions ar are bein e being g mov oved ed to to mo mobil bile. e. LaFleurs 14 May 2019 Proprietary & Confidential 28 Feb. 2018 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 15

WHY IS MOBILE IMPORTANT? • 97 97% of c % of con onsume sumers rs 18 18 – 54 54 ow own n smart artphon phones. es. • Mi Mille llenn nnial ial mo mobile bile us usage has age has surp urpassed assed TV TV con consump sumption tion. • 70 70% of g % of gam ambli bling ng tr tran ansacti sactions ons ar are e ma made w de wit ith h mo mobile bile. • 80 80% of s % of smart artphon phone e us users ers ha have ve mad ade a p e a pur urchase chase us using ing th their eir mob obile ile dev device ice. • Yo You ca u can pu n purch rchase ase jus ust t ab abou out t anything with mobile……. LaFleurs 14 May 2019 Proprietary & Confidential 28 Feb. 2018 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 16

LOTTERY PAPER TRANSACTION LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 17

LOTTERY MOBILE TRANSACTION No of Total Plays $2.0 1 0 3 12 1 7 27 41 8 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 18

WHAT IS LAZLO? • Co Conv nverts erts a pa a paper per ti tick cket et to to a dig a digit ital al mob obile ile ima image ge or or vide video. o. • Su Suppo pports rts all all lo lott ttery ery dr draw aw ga games es. • Rec Recor ords ds all all tr transa ansactions ctions se securel curely y on on th the e Tues esday ay May ay 14, 4, 2019 19 lottery’s gaming system. No of Plays 1 Total $2.00 • Integrates into the retailers’ POS 27 3 12 17 41 syste sy stems ms for for sin single gle-scan scan tr transa ansactions. ctions. 8 • In Integ tegrates rates in into to Sc Scan an & G & Go t o tec echno hnology logy. $2 No Multi tiply ply Fri, , May 17 • Pro rovid vides es va valu lue-adde added d of offe fers rs th that at pro promo mote te pla playe yer loya r loyalt lty. y. • No f No fee ees, no ca , no card rds, s, no no har hardware dware an and no d no min inim imum um co cons nsume umer r pu purc rchase. hase. LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 19

RETAIL BASE EXPANSION • Ad Addin ding g re reta tailers is cos ilers is costl tly. y. • Ne New ret retai ailers lers hav ave bee e been re relu lucta ctant nt to to se sell lot ll lotte tery ry pr prod oduct cts. s. • Lot ottery tery is is hig high h ris risk, k, la labo bor r inte in tensiv nsive e an and low d low pro profit fit. • Wh What at if y if you ou co could ad ld addr dres ess s th these ese is issues sues? • Zer ero o co cost, t, sec ecure ure, , mob obile ile pr prod oduct ct de deliv liver ery y ca can hel elp. p. • Imagine……. LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 20

PARLAY SPORTS BETTING • Th Three ree ev even ents ts min inim imum. um. • Ba Based sed on on La Las s Veg Vegas as odd odds. s. • Ha Half po lf poin int sp t sprea reads ds - pr prev even ent t ti ties es. • At Attra tracts cts a y a you ounger nger male ale, affl , afflue uent nt, , spo port rts s en enth thusiast. usiast. • Not Not ty typic pical al lot lotte tery ry pla playe yers. rs. • Purc urchase hase at at loc local c al c-sto store re – no not sp t sport orts s bars ba rs. • Exp Exper erien ienced ced do doub uble di le digit git sale ales s in incr creases eac eases each h ye year ar. • Pay ayou out appr t approx oxim imatel ately y 60 60%. %. LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 21

THANK YOU Art Kiuttu SVP Lottery & Gaming Solutions Lazlo 326 art@lazlo326.com 210.254.6725 LaFleurs 14 May 2019 Proprietary & Confidential | 6 Feb, 2018 | Art Kiuttu 22