“What affect us the most are the barriers imposed by Argentine government”

In your view, How has been the performance of the industry during 2010?
We noted a difficulty in the recovery of the industry, specially in US and Europe, where we believe the impact stronger. On the other hand, in Latin America the situation was much better; we closed important agreements with international groups and the market was much more active than in other territories.

Which are the main problems that affect your sector? Which would be the potential solutions?
In fact, we have seen a decrease in the customers’purchases in those territories where problems were stronger; even in products with low-added cost, as cards. However, Copag and TCS, our distributors for the casino sector in some territories, offer plans of payment and long-term negotiations. It means we offer options according to the customer needs. They can always count with our assistance.

In the markets in which you operate, Which is the one that has registered more growth and why?
Surely it was Latin America, which is our main market. People like our products and services very much, on top of the geographical and cultural proximity. We did not have better results in a country in particular, but we closed agreements with several very important international groups.

What product of the catalogue of the firm has generated more sales level during 2010?
Cardboard cards are always the massive consumption in most of the countries in which we participate, but we have had a very important increment in plastic cards due to the importance of poker in casinos and tournaments. Besides, many customers are convinced that it is worth investing in their country and in their business. That’s why they bet to the durability of Copag plastic cards.

Which is the country with more margin growth facing 2011 and why?
We are very optimistic with the recovery of the European market, although it does not happen in every country, therefore, many of them are starting to recover and they need to
Replace their stocks. We were demanded many valuations, and we had several negotiations in the last two months. In fact, we have signed many agreements.
 
For you, which is the main change, at a legislative and regulatory level, that has been registered in Latin America during 2010?
Surely, what affects us the most are the barriers imposed by the Argentine government to import of cards and other articles. At the beginning, we understood it was part of the bureaucracy, but then It has become a nightmare. Casinos do not obtain the government permission to import, and the papers, which should last 60 to 90 days maximum, have really been delayed more than a year for some of our customers. We are lucky to have alternatives. Any customer that wishes to buy cards has the tanquility to be able to receive them in their store without complications. Although it is inacceptable that a country like Argentina, with so many important casinos and economically participative with regards to the Mercosur and Latin America, adopts this type of attitude, because they do not count with qualified national providers and customers have no alternatives.

Besides, we are optimistic with regards to the inauguration of table games in Mexico, a country that is improving a lot and is allowing us to think in potential plans.

What opportunities or disadvantages do the mentioned changes generate to the company?
With regards to Argentina, there are disadvantages for casinos and providers due to the disqualification of the industry. Besides, we must not forget the risks that casinos suffer
For not having a new product and not being able to change it any time they consider it necessary. It makes them being more vulnerable to the cheats of players that mark cards, specially when casinos keep this product for a long time.
With regards to Mexico, we are ready to offer the market high-quality cards, in cardboard or 100% plastic, associated to a specialized service, certificate of origin and everything that enables having a good product, service and commercial condition to the customers.

What are your expectations for 2011?
We expect the industry to recover at a quicker rythmn, that businessmen keep on working strong with ethics and in the most professional way, for the market’s sake, and also that governments support an industry that generates employments, taxes, tourism and has an important participation in economy.