Intralot - Missing EBITDA from the JVs

All,

We’ve been through the Intralot numbers this morning and continue to miss some E5m of EBITDA from the company’s JVs.

While last quarter we’ve had some excess EBITDA, this quarter we are missing some...

Quick thoughts:

- EBITDA in the company’s main JVs is E5m weaker than expected.

- Cash E4m more than expected - mostly due to inflows from WC.

- All else seems benign.

As regards the company’s purchases of bonds in the open market (disclosed on Friday), we see it as a step in the right direction as far as our thesis is concerned. However, the company will ave to do far more of it and be more quiet about it too / use “affiliates” / warehousing banks etc. Maybe it does, but announcing bond purchases spoils the discount.

Wolfgang