International edition
September 22, 2020

One of the key initiatives of the company is to expand its presence in China

Scientific Games announced executive management changes

(US).- Scientific Games Corporation announced several changes to strengthen its executive management team. At the request of the Board of Directors, A. Lorne Weil, the company's Chairman, will also become CEO, a position he previously held from 1992 to 2008. During Weil's prior tenure, the company's revenue grew from less than us$ 50 million to over us$ 1 billion.

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esides, Michael R. Chambrello, the company's President and CEO, will become the Chief Executive Officer - Asia-Pacific Region. This newly created role will enable the company to substantially enhance its focus on realizing its growth potential in China and other jurisdictions in the Asia-Pacific region.

David L. Kennedy, Vice Chairman, will become Executive Vice Chairman. In this newly created staff role, he will focus on enhancing the operational performance of the company across all of its business units.

Messrs. Chambrello and Kennedy will report to Weil and will continue to serve on the Board of Directors of Scientific Games. The management changes are effective immediately.

"One of our key initiatives has been to expand our presence in China where we see meaningful opportunities for growth," Weil stated. "We've had significant success in China in a very short period of time. That said, we believe the growth potential is much greater than what we've realized to date. We've determined that we need to devote significantly more senior management time and personnel to further developing our China business. As the original architect of our China expansion initiatives, Mike is extremely well suited to spearhead our strategy and execution in this key jurisdiction."

Chambrello commented, "As I noted on our last earnings call, overall sales of instant and other lottery products are vibrant in China. I'm confident in our ability to expand Scientific Games' business in China, and I look forward to leading these efforts on behalf of the company."

Weil continued, "The Board and I are pleased that David Kennedy will be part of the expanded team that will lead Scientific Games in its next phase of growth. David brings proven operational and financial experience as a senior executive at Revlon and Coca-Cola, along with an in-depth knowledge of our company through his service on our board. I look forward to working closely with David, Mike, our CFO Jeff Lipkin, and the rest of our team to re-invigorate and restore growth to our business."

Some of the key growth initiatives the management team will focus on include: Continue to execute on our strategy to become the preeminent supplier of server-based gaming machines in wide area gaming markets, following the firm's successful award of a significant portion of Ladbrokes' estate in the U.K. The company will seek to expand this proven business model outside the U.K., and in North America in particular.

Further develop the international instant ticket market, where instant ticket sales as a percentage of total lottery revenues are much lower than in North America, with the notable exception of Italy. The Company will enhance its business development efforts to better address this significant opportunity in China and other international jurisdictions.

Increase product sales by tailoring the company's products, content and delivery mechanisms to new retail outlets, including grocery stores, "big box" retailers and drug store chains.

Aggressively target attractive new business models, including lottery private management which offers the opportunity to transform lottery vendors from commodity suppliers to value-added operators.

Another initiatives are: To leverage the company's leading global distribution platform by developing and delivering new content, such as the extensive portfolio of games and intellectual property recently acquired from GameLogic, and to expand utilization of the internet and other interactive technologies to grow lottery playership and pursue regulated gaming opportunities, including leveraging the company's Sciplay joint venture to become a leading participant in the business-to-government gaming industry as the regulatory environment evolves. Grow lottery sales of existing and new customers with the company's Properties Plus Internet offerings.

"With the expansion and redirection of our executive management team, combined with our increasing emphasis on driving innovation in our products and services, I believe Scientific Games is very well positioned for profitable growth. The company's investments over the years have provided the assets and platform to aggressively pursue these exciting opportunities, with incremental growth offering the potential to drive meaningful operating leverage. At the same time, we will continue to remain disciplined regarding capital deployment and are highly focused on enhancing free cash flow and return on investment," Weil concluded.

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