1q 2015 financial results - intralot1q15 results overview (3/3) net debt as at 31.03.2015 reached...

1Q 2015 Financial Results Presentation

May 28, 2015

1Q15 Results Overview (1/3) Revenues increased by 12.0% y-o-y in 1Q15 to €499.4m.

Constant currency basis: Revenues: €475.4m +6.7% y-o-y in 1Q15 (FX positive impact of €24.0m).

Ebitda decreased by 10.6% y-o-y to €46.2m.

After adjustment for one-off restructuring costs of €0.6m and provisions of €0.6m EBITDA in 1Q15 reached €47.4m. Excluding the impact of the OPAP and Romanian contracts the rest of the business grew by an estimated 11%.

Constant currency basis:

Ebitda: €42.8m -17.2% y-o-y in 1Q15 (FX positive impact of €3.4m).

EBT increased by 12.5% y-o-y to €18.7m.

After adjustment for one-off restructuring costs, provisions and impairments, EBT increased by 20.4%.

Constant currency basis:

EBT: €15.7m -5.5% y-o-y in 1Q 2015 (FX positive impact of €3.0m).

May 2015|Public|Final of 18

1Q15 Results Overview (2/3)

Net Profit for the period was shaped at a negative €8.9m.

After adjustment for one-off restructuring costs, provisions and impairments, NIATM developed at €-7.9m.

Winners’ payout: Payout for all games increased by 2.5 percentage points in 1Q15 compared to 1Q14.

Cash-Flow & Capex Operating Cash Flow in the 1Q15 increased by €2.1m to €6.4m, compared to the same period in

2014. Cash flow in 1Q15 includes the one-off impact of increased working capital needs in order to bring suppliers credit to normal levels.

Capex in 1Q15 was €13.6m, which includes €1.1m of one-off restructuring and relocation costs,

compared to €13.9m in 1Q14.

of 18 May 2015|Public|Final

1Q15 Results Overview (3/3) Net Debt as at 31.03.2015 reached €393.0m, increased by €11.6m compared to 31.12.2014

(€381.4m). The increase in net debt was mainly attributed to the higher working capital requirements in the period of 1Q15, which we believe is temporary and should unwind in the next quarters. Moreover, cash flow was impacted by the payment of the semiannual coupon of the 325m bond (€15.5m) and the interest expense for the €200m Syndicated Facility that was fully drawn for financial prudency reasons in the end of December 2014 (€2.8m) and continues to be largely unutilized. The drawdown of our syndicated facility did not have any further impact on Net Debt. Finally, Net Debt was impacted in 1Q15 by €1.6m outflows for one-off restructuring OPEX and CAPEX items.

R&D The Group continued to invest in R&D in order to remain at the forefront of technological

developments, mainly focusing on further enhancing its products relating to mobile gaming, content, player engagement platforms, CRM systems, and the LOTOS10 system. The total amount spent for R&D in 1Q15 was €2.4m vs. €5.2m in 1Q14.


1Q15 Consolidated Results

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(in millions €) 1Q15 1Q14 % chg

Revenues (Turnover) 499.4 445.7 +12.0%

EBITDA 46.2 51.6 -10.6%

EBITDA adjusted 46.8 51.8 -9.7%

EBT 18.7 16.6 +12.5%

EBT adjusted 19.3 16.9 +14.7%

Net profit -8.9 -8.5 -

Net Profit adjusted -8.3 -8.4 -

May 2015|Public|Final

1Q15 Results – Pro-forma*

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(in millions €) 1Q15 1Q14 % chg

Revenues 499.4 445.7 +12.0%

EBITDA 47.7 51.8 -8.6%

EBITDA margin 9.5% 11.6% -2.1pps

EBT 20.4 17.0 20.4%

Net profit -7.9 -8.4 -


* Adjusted on a pro-forma basis for non-recurring restructuring costs, impairments & provisions.

Revenues Bridge

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1Q 2014 East Europe West Europe Australasia N. America S. America Africa 1Q 2015

499.4

445.7 12.0 3.1

-3.8

6.1

35.5 0.8


Segmental Analysis

Contract type Sales Breakdown

1Q 2015 Sales Breakdown 1Q 2014 Sales Breakdown

Management

Contracts

7.6%

Technology

10.1%

Management

Contracts

7.2%

Technology

10.4%

Licensed Operations

82.3%

Licensed Operations

82.4%

Operation and control over every aspect of the lottery

Licensed Operations

Management Contracts

Technology

• Day-to-day operations

• Marketing

• POS optimization

• Risk management

• HW & SW

• Telecom solutions

• Maintenance

• Support


Revenue per Product Analysis

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8.7%

16.4%

17.5%19.0%

6.1%

12.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Revenues Growth Analysis 1Q15 vs 1Q14

Sports Betting VLTs/ AWPsIT products &services, etc

Consolidatedrevenues

RacingNumerical


Revenue per Product Contribution

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Sports % of total 48.6%

Numerical % of total 31.3%

VLTs/AWPs % of total 10.3%

Racing % of total 3.1%

IT products & services, etc % of total 6.8%

Revenue Analysis 1Q15


Wagers – Regional Analysis 1Q15

of 18

35.2%

0.7%

13.2%

26.0%

21.8%

25.0%

12.2%

20.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

East Europe West Europe Total Europe North America South America Australasia Africa Total

% chg in Euro


Wagers – Contribution per region

of 18

East Europe 1,091

West Europe 1,424

North America 1,364

South America 237

Australasia 2,200

Africa 142

Wagers Analysis per region 1Q15in Euro million


Appendix Summary Financial Statements

1Q15 – Group Income Statement


(in € million) 1Q15 1Q14%

change

Revenues 499.4 445.7 12.0%

Gross Profit 69.3 72.4 -4.2%

Other Operating Income 6.6 4.3 53.2%

OPEX 51.4 45.7 12.5%

EBITDA 46.2 51.6 -10.6%

margin 9.2% 11.6%

EBIT 23.9 31.1 -23.3%

Interest expense (net) -15.0 -13.7

Exchange differences 9.9 0.0

Other -0.8 -0.7

EBT 18.7 16.6 12.5%

Net Income after minorities -8.9 -8.5 n.m.

Consolidated Income Statement for the 3 Months

Ended March 31st

, 2015

1Q15 – Group Balance Sheet


(in € million) 1Q15 1Q14

Tangible Assets 187.5 182.8

Intangible Assets 355.5 348.9

Other Non-Current Assets 158.2 139.1

Inventories 52.7 52.0

Trade receivables 212.5 215.4

Other Current Assets 388.4 416.9

TOTAL ASSETS 1,354.8 1,355.1

Share Capital 47.7 47.7

Other Equity Elements 182.4 169.8

Non-Controlling Interests 104.7 100.1

Total Shareholders Equity 334.8 317.5

Long-term Debt 742.6 557.5

Provisions/ Other Long term Liabilities 50.7 50.6

Short-term Debt 33.2 232.3

Other Short-term Liabilities 193.6 197.2

Total Liabilities 1,020.0 1,037.6

TOTAL EQUITY AND LIABILITIES 1,354.8 1,355.1

1Q15 – Group Cash Flow


(in € million) 1Q15 1Q14

EBT 18.7 16.6

Plus/less Adjustments 5.4 2.3

Decrease/(increase) of Inventories 0.7 -0.1

Decrease/(increase) of Receivable Accounts -2.4 -7.8

(Decrease)/increase of Payable Accounts -16.0 -6.6

Net Cash from Operating Activities 6.4 4.3

CAPEX -13.6 -13.9

(Purchases) / Sales of subsidiaries & other investments 1.5 0.2

Interest received 1.3 2.1

Dividends received 0.1 0.1

Net Cash from Investing Activities -10.7 -11.6

Purchase of treasury shares 0.0 0.0

Cash inflows from loans 3.5 30.0

Repayment of loans -16.2 -11.5

Repayment of Leasing Obligations -2.9 -3.7

Dividends paid -8.6 -4.3

Net Cash from Financing Activities -24.2 10.5

Net increase / (decrease) in cash for the period -28.5 3.3

Cash at the beginning of the period 416.9 143.3

Cash at the end of the period 388.4 146.6

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1q 2015 financial results - intralot1q15 results overview (3/3) net debt as at 31.03.2015 reached...

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