iGaming Asia Macau 2015

March 17-19, 2015Christopher Rey M. Tio

Executive Vice President, DFNN

TECHNOLOGY AT PLAY

“The Philippines has come such a long way..”

Source: Daniel Wagner -CEO of Country Risk Solutions.

“Philippine Growth Rises for Best Three Years Since Mid-1950s..”

According to the Philippine Statistics Authority, the GDP

increased 6.9% in three months through December.

Beats all records with a median of 6%

Industrial production grew

9.2% in the 4th quarter of 2014

Government spending

increased 9.8%

The fastest pace in 6 quarters, according

to data by Bloomberg.

http://www.bloomberg.com/news/articles/2015-01-29/philippine-growth-rebounds-for-best-three-years-since-mid-1950s

“The Philippines is one of the fastest growing economies…”

The world is expected to grow

3.2% of global Gross Domestic Product (GDP) in 2015.

Source: Bloomberg 2015

China, Philippines, Kenya, India and Indonesia, together make up

about 16% of GDP, with a forecast to grow more than 5% in 2015

The Demographics Of Philippines Provides A Strong Platform For Gaming Market Expansion

• GNI per capita is $3,270 (2010 to 2014.)

• Information Handling Services (IHS) analyst forecasts a

long-term economic growth of 4.5%-5% a year from 2016-2030 and has projected

that the Philippine economy will hit $1.2 trillion dollars by 2030.

Confidential 5Sources: ¹The Republic of the Philippines National Statistics Office, 2010. CIA World Fact Book. ³Best Country Reports, 2013. ⁴World Bank, 2013. ⁵CLSA Asia Pacific, 2012. ⁶Credit Suisse, 2013. ⁷Nielson, 2013.

REGIONAL POOL OF PLAYERS

•37% of the population are ages of 25-54, which total 39,828,183.

Top Countries Spending Time on the Internet

• Users in the Philippines spend a record 6.3 hours on their desktops.

• 2.1 hours higher than the world average.

Four Key Trends for the Digital Gaming Boom in the Philippines

1. Rise in Internet Usage

The Philippines’ Digital Boom: 5 Key Trends for 2014http://www.tigermine.com/2014/02/16/philippines-digital-boom-trends-2014/

•The internet access in the Philippines was the fastest growing rate (500%) in SEA between 2008 and 2012.

2. Mobile Penetration

The Philippines’ Digital Boom: 5 Key Trends for 2014http://www.tigermine.com/2014/02/16/philippines-digital-boom-trends-2014/

•The Philippines has some of the largest growth sales of Smartphone in Southeast Asia.

•Mobile subscriptions in the Philippines topped 100% for the first time in 2012.

“Smartphones dominate Philippine Market 2014..”

http://www.businessmirror.com.ph/local-vendors-dominate-smartphone-market-idc/

3. Social Media Usage

The Philippines’ Digital Boom: 5 Key Trends for 2014http://www.tigermine.com/2014/02/16/philippines-digital-boom-trends-2014/

96% of Filipino citizens use social media

4. Online Brand Engagement

The Philippines’ Digital Boom: 5 Key Trends for 2014http://www.tigermine.com/2014/02/16/philippines-digital-boom-trends-2014/

•The mobile users in the Philippines are more likely to click on mobile ads than any other Southeast Asian country.

Average rate across all content channels, measured as per cent of total internet users Q4, 2013

ROCKET GROWTH FOR

“Rocket growth for DFNN..”

The Philippines has a strong potential growth in the EGM

Market

Enormous Market Capacity For Additional EGMs

Confidential 16¹Credit Suisse, 2013. ²Based on PHP Census, 2010, Population growth estimates NCSB Philippines, World Count Gaming Machines, 2013, and

Company Estimates.

The Philippines gaming market is predicted by PAGCOR to grow by 41% CAGR in the next 5 years to US$11.04 BN.

Projections For Strong GGR Growth

Top 2 Market Players

(as of 11.30.14)

EGM FOOTPRINT: The Top EGM Markets

Rank Country Number of EGMs¹

Population (Millions)

Number of people per

machine

1 Japan 4,592,036 127,270,000 28

2 USA 889,070 317,400,000 3573 Italy 412,252 59,901,141 1454 Germany 265,000 80,586,000 3045 Spain 249,820 46,704,314 1876 Australia 198,418 23,335,808 1187 UK 157,002 63,395,574 4048 Canada 97,289 35,295,770 3639 Mexico 90,000 118,395,054 1,316

10 Peru 76,278 30,475,144 400 - Philippines 11,477 98,915,000 8,619

Source: World Count Gaming Machines, 2014. Company Estimates. ¹EGM is defined as a device designed for The playing of a game of chance or a game that is partly chance and partly a game requiring skill, and The paying out of money or tokens or for registering

a right to an amount of money or money’s worth to be paid, and includes any subsidiary equipment.

There is a huge opportunity for growth In the

Philippines

Summary of EGMs around Asia/Euroasia

Source: World Count Gaming Machines, 2014. Company Estimates. ¹EGM is defined as a device designed for The playing of a game of chance or a game that is partly chance and partly a game requiring skill, and The paying out of money or tokens or for registering

a right to an amount of money or money’s worth to be paid, and includes any subsidiary equipment.

Overview• DFNN Inc., an information technology (IT) solutions

provider and systems integrator who launched its initial public offering at the Philippine Stock Exchange (PSE) in 2000.

• DFNN has four gaming opportunities from state-run agencies, three granted by the Philippine Amusement and Gaming Corporation (PAGCOR) and one by the Philippine Charity Sweepstakes Office (PCSO).

“DFNN is positioning for the gaming industry’s exponential growth through the nationwide expansion of its EGM

footprint..” –CFO Ksearch Asia Consultancy, Gamboa

TECHNOLOGY AT PLAY