Mr Veverka: Thank you, thank you for your time this morning. is the company behind ozlotteries.com, which is a app and a website that has been around since 2005 selling tickets in Australia, same lottery tickets you buy on the street, Oz Lotto, , but a whole lot more. We're completely 100% digital. All our tickets are sold via our various devices which include your computer, your phone, even your Apple watch and we've really undergone a lot of growth over the last 15 years. We started this in 2005 and we really represent what is going to look like in the future. One of our big strengths is that we've really done a good job in appealing to the younger demographic. The little graph you see there on the left, the light blue is the demographic of your typical lottery player, on the right-hand side you've got the 65-plus and on the left-hand side, you've got your 18 to 25s. While the dark blue is our demographic and as you can see, it's very heavily skewed towards the 25 to 35 and 35 to 45 on the left hand side, so being purely digital, people in that age group are more likely to go and buy a lottery ticket online than walk into a store.

A lot of benefits with buying tickets online, we have features like auto play, the convenience that it's there 24 hours a day. One of our customers - one of the perks of my job is I get to ring up winners and we had a winner who, on the Central Coast, won about $25 million. I called him up to tell him that he'd won $25 million and he thought it was a joke. I explained to him that no, it was all official, he still didn't believe me and I explained that five years earlier he had signed up on our auto play and every week we were faithfully buying his tickets for him and this particular week when his numbers came up and that's when the penny dropped, literally, that he really did win. So it was a great story that we really put out there to the market and it encourage a lot of our other of our players to join up onto our auto play.

We also have a thing called the lotto party. I'm sure you've all been part of a lotto syndicate at work where somebody has to get together and organise a group of people to play the lottery; a lot of problems doing it that way. We've gone completely digital, we're responsible for chasing people up for the money, we're responsible for divvying up the prize winnings at the end of the day, so as we say, we keep friends as friends. We also do special combos and also a new thing for the last few years, we do charity games. So we have people like the RSPCA, the Mater Hospital, the Endeavour Foundation and others on our website, so people can come to the website, buy Oz Lotto, buy Powerball, buy Set For Life as well as support these charity games. So that's a quick introduction as to who we are.

How did we go in the last six months? On the left-hand side, well let me start with the right-hand side, the financial results were great, they were record numbers. TTV, which is our ticket sales, up 25% and revenue up 23%, profits up, everything that you would expect to see of a good result. But the real question is why are the numbers so good and the reason for that is that our customers clearly love playing on Jumbo. We track our number of active customers, they're customers that actually play in the last 12 months and over the last 12 months we had 848,000 active customers, which grew over 100% over a two-year period, so that’s some pretty staggering growth on not just customers that sign up to the system, but actually play. For us it's all about engaging with our customers and using technology to make that happen.

Now lotteries is a fun game when the jackpots are big, but it can get boring when the jackpots aren't there. So typically or historically, lottery sales tend to go up and down with the jackpots, you get a large jackpot, sure, everybody will buy a ticket when it's $100 million, but what if it's only $10 million, doesn't seem like a lot of money anymore, so the sales go down. But when they're on our software platform, when they're on our app, we've got a lot more technical methods to keep engaged with our customers and keep them playing. Our customer dormancy rate, which is our measure of when people just stop playing for one reason or another, has plummeted from about 30% down to 16.9%. That's a good thing, because our customers are less dormant, they're more active on our system.

Again, our proprietary software platform is the main reason for that. We're employing artificial intelligence and machine learning, so it really personalises each one of our customers. They're not treated as a number, but they're treated as an individual. We know what they like, what they don't like and we give them the content that suits that. That's important because from a financial point of view, as I said before, sales tend to go up and down with jackpots, makes us a lot more resilient with the jackpots do go down. Because we've got all this technology at our disposal, that keeps people engaged and playing.

This is an interesting graph. This shows you the percentage of tickets that get sold online as opposed to the overall market and as you can see from the last seven or eight years, it's steadily grown up and up and up. So right now 26.7% of all the lottery tickets sold in Australia happen online. There are countries like in the UK, they're about 30%, Finland and Austria are about 40% and 50%, so this whole migration of customers from offline to online and the emergence of younger players into lotteries is really pushing along the growth of the online lottery industry.

It's one of those industries that's just resilient to so many things. It's there because it raises money for schools and hospitals, the state governments are major beneficiaries from lottery ticket sales, Tabcorp, our partner, is a major beneficiary. We are of course and the people that play the lotteries, obviously the winners, are major beneficiaries, but it's really all about raising money for schools and hospitals and even during the GFC, our lottery sales just kept going up and up and up, it's impervious to many of the things that happen around the world. That's just a little graph of the number of jackpots. As you can see, it does go up and down over the years, but the internet penetration continues to go up and our sales continue to go up regardless.

That's the ticket-selling business, that's been around for 15 years, but last year we started a new part of our business, software as a service, which we call Powered by Jumbo. Now we're quite a success in the world lottery stage and a lot of people come up to us and say how can their lottery around the world benefit from some of the technology that we've developed here in Australia for the last 15 years. So we've addressed that by releasing a software as a service business that basically sells our software platform to other lottery providers around the world. That represents a lot of growth for Jumbo over the next decade or two, because let's face it, a lot of tickets get sold around the world, about US$300 billion, that's billion with the B, around the world and only about 7% of that is online. So a lot of work to be done over the next couple of decades for companies that can help lotteries go online.

But our initial target are charity lotteries, simply because they're the lotteries most eager to sign up on our system. We've had three clients to date and just this morning we've announced our fourth client, the multiple sclerosis lottery in . They've joined the Endeavour Foundation, the Mater and The Deaf Society as clients of ours using our software. We've just, in the last six months, developed a point of sale solution, because they're not just - these customers don't want to just sell their tickets over the app that we give them or the website that we give them, but they have houses, they have over- the-phone sales and everything, so we've just released a point of sale device that works seamlessly with our website and our app so that people can buy their tickets from inside the prize home, wherever that may be. Some of the long term growth, as you can see there, despite the jackpot fluctuations, yes there are some short term ups and downs there, but over the long period, that's over about six or seven years, you can see it's quite a strong uptick, in fact our compound annual growth rate over five years is about 24.6%, which is not too bad. We have this

We have this like-for-like analysis, which for those that like to dig deep into the numbers, this shows our sales at a particular jackpot level. See when we get a big jackpot, $50 million, $100 million, it's the world's easiest product to sell, people literally queue up outside to buy a ticket. In fact in the early days, we had so many people trying to buy tickets in those $100 million draws, our system literally couldn't handle the volume. We had to upgrade our system about five years ago to handle that load. Now, with our new system, we're able to handle it quite easily. But they only happen once every few months, or once a year or something like that and there's no guarantee about when the next one is going to be. So what happens on the bread and butter draws, the $15 million, the $20 million, the $10 million, the small ones, the ones that happen most of the time? So we isolate those draws, we look at the sales and we look at that over a period of time. This is the graph that we see, quite a steady uptick, so what that says it that we're successfully managing to sell more tickets, even at the lower level draws and that's good news in case the jackpots don't appear over the next 12 months, we're a lot more resilient and we can keep our sales going.

Financial performance, as you can see, some strong growth across the board there. We've been profitable for quite a while now. Dividends, we've been paying dividends for quite a while now. Financial position, no debt, equity about the $80 million, cash at bank also about $80 million, strong on cash flow. Now our vision, where are we going from here? Last year we announced our billion-dollar vision. What we want to do by 2022 is put $1 billion worth of ticket sales in one year through our software platform. Where are we now in that? Well we just did $320 million in ticket sales and we've signed up clients which total about another $135 million. So in rough terms, where we are now is about just under $500 million. So how are we going to get another $500 million between now and 2022? This is where this graph, the dark blue at the bottom represents our ticket-selling business, the one that's been around for 15 years. Let's assume that grows at just the normal rate that we've managed to grow for the last five years, which is the 24.6% there. If that continues to grow for the next three years, that will reach $680 million and the red section at the top there represents our software as a service business, our new one, we're currently at $135 million, we need that to grow to about $320 million to bridge the gap to $1 billion.

We can do that just by signing up more charity lotteries in Australia, but we're also making some great headway in the UK. We just acquired a business called Gatherwell Limited, that sells tickets to UK charity lotteries and that's given a foothold in the UK market. The US market is also opening up, so we're quite confident that we can get to that $1 billion target. It's not going to be easy, but certainly with a concerted effort, we can get there. How are we going to get there? Obviously our platform is key, our platform needs to be one of the best in the world, which it is and we'll continue to build the success on what we have here in Oz Lotteries in Australia. Our strategy is first to market with online innovations. In the last year we've put out the Lotto Party, which is a fully digital online lottery syndicate manager, plus leading app and we're also working on voice integration so you can have your Google device or Amazon device there, you can talk to it and say, hey Google, what's the jackpot going to be this week or what were the winning numbers last week. We're still working on a feature what the winning numbers are going to be next week, but we'll see how we go with that one.

Okay, the outlook is strong for the business, a lot of it short term will depend on what happens with jackpots. We've had a pretty good jackpot run. Who knows what's going to happen, we may continue to have a jackpot run, it may go into a slow period, but we've been through it multiple times before, we're pretty confident of our resilience going forward and when jackpots do return, because we're purely digital, 100% digital, our marketing is very nimble, it can get switched on and off very quickly and we can acquire new customers when the conditions are right. Okay, that concludes my presentation. Any questions?

Mr Irvine: Lots of questions over this part, I'll go to this side first.

Question: As your business is really driven by major jackpots, how do you see competing with people like Lottoland who obviously run a very much higher jackpot level?

Mr Veverka: Lottoland have been knocked back a few paces in the last few years by legislation because a lot of what they were doing, the government weren't really keen on. So they came out with a big bang, they were made to look like it was the US Powerball when it wasn't exactly the same. So they did cause us a spike in our cost per acquisition of customers, because they were quite active in the marketplace, but that was two years ago and they've really quietened down since then because the Australian Government passed legislation to stop the synthetic lottery idea which they were perpetuating. They are still in the marketplace, but they're a lot smaller and they're not really much of a factor anymore.

Mr Irvine: Okay, I have one more here.

Question: I'm in the SAAS space myself and I find that quite interesting, that whole strategy around your software. If it's not commercial sensitive, is that a monthly subscription? Do you click the ticket along the way? What's the model that you guys use?

Mr Veverka: It's a pure percentage model, roughly around about 3% and 5% of the ticket sales, so somebody like the Mater or the Endeavour, they just continue selling tickets. They sell about $50 million a year in tickets, of which we get approximately $2 million of that for providing the software. There's no upfront fee, it's just a pure percentage, five year plus five-year contracts. It's one of those models where they take their business put on to our platform, while we do a good job and if we continue to do a good job, we've pretty much got their business for life and on it goes. So it's quite a lucrative business model if we can maintain our technological superiority.

Mr Irvine: I have one more from the lady in the second row here, but there's one at the back, we'll take that one first and come back to you, ma'am, if that's okay? Gentleman, if you can just raise your hand again, thank you and just wait for the mic.

Question: I can see that through these modern apps you seem to attract more and more young players to this gambling, the 20 and 30 groups, the question is, what strategies do you have to actually address problem gamblers, to help them overcome and kick the gambling habit?

Mr Veverka: The good thing about lotteries is that it hardly has any problem gambling at all. It's completely different from casino gambling, it's completely different from sports betting, wagering, that type of gambling. Why? Because lotteries is on a weekly cycle. See the problem with poker machines and casinos, the turnover is every few minutes, so people sit down, they play and it just goes around and around and around and it requires some discipline to break out of that cycle. With lotteries it's not like that at all. You buy a ticket and you wait and by waiting, we just don't have any problem gambling. In addition to that, being completely online, our computer systems monitor transactions and let's say somebody does go a little bit crazy and spends too much, then our systems highlight, we contact the customer and deal with it, but even that hardly ever happens. Our average customer spend is about $400 per year, so we're only talking about, in one ticket purchase, maybe $10, $20. You're not going to lose your house spending $10 or $20 on a lottery. The fun thing about lotteries is about participation.

Now look, let's face it, we all know that the chance of winning the lottery is not good, it's not about trying to beat the numbers or beat the odds, it's about participating and knowing that if you don't win, a big part of your ticket price is going towards schools and hospitals and that's why people play. Same with our charities, we make a big deal about the charity behind it because while people would love to win the house or the car, they know that even if they don't, their money is going to a good cause and that's the big driver behind lotteries.

Mr Irvine: The last one here.

Question: I'm actually a shareholder and I think it's a really good company. The only question I have is, one, can you do dividend reinvestment, because I like that and two, why are the directors leaving and the share price has gone down a bit in the last - because I've kept an eye - look I bought the shares when they were quite cheap, but they've gone from $20 down to, I think it's about $13 and I notice the directors have resigned. Why is that?

Mr Veverka: No, no directors have resigned, in fact we've added directors. We've gone from three to five directors. Look, as the major shareholder, I feel your pain more than anybody else. We did go on a heck of a run. Three years ago we were $2, Tabcorp put an investment into us of $15 million for $2.37 and we hit $27 just a few months ago. We have come off the highs, definitely. Look I put that down to we just really shot up super quickly. We went from the ASX 300 and we're now in the ASX 200 and I think it's just taking a lot of time for a lot of these major funds that play in the ASX 200 space to get their head around Jumbo. They saw our numbers, the numbers are great, but they're still to understand the impact of jackpot fluctuations. No business just continues to go up and up and up, there's always going to be bumps along the way. Over the longer period, we can demonstrate good growth, so we've doubled our efforts with investor relations just to get the message out there not to look so short term and look longer term and you'll see a great business there. Mr Irvine: We're right on time. Let's say thank you to Mike again for his presentation.

Mr Veverka: Thank you.