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September 2016 | Public | Final | Page 1 of 18
1H 2016 Financial Results Presentation
September 5, 2016
September 2016 | Public | Final | Page 2 of 18
1H16 Results Overview
• Significant EBITDA growth of 17.1% in 2Q16 (+33.4% in constant currency); boosting 1H16
EBITDA increase to 10.9% (+26.0% in constant currency).
• EBITDA margin expanded by 50bps to 13.4% in 2Q16 and by 100bps to 14.0% in 1H16
compared to the corresponding periods of 2015.
• Group Revenues up 13.3% in 2Q16 (+26.2% in constant currency); bringing 1H16
revenues growth to 2.9% (+15.4% in constant currency).
• Adjusting for the effects from M&A transaction, net debt remained relatively stable for the
third consecutive quarter.
• The Company took the following important steps in implementing strategic initiatives, which
are in line with our strategy to create, in selected countries, strategic partnerships with
strong local partners that offer substantial synergies and local market know-how,
strengthening the development of the local business and to expand our gaming product
portfolio:
September 2016 | Public | Final | Page 3 of 18
1H16 Results Overview
In 2Q16 the merger of our Italian activities with Gamenet was completed.
In Peru we reached an agreement with Nexus Group to sell 80% of Intralot de Peru.
In July 2016 we completed the acquisition of a strategic stake in a leading gaming company in Bulgaria,
Eurobet.
In August INTRALOT announced that it has entered into discussions with Tatts for a potential sale of
INTRALOT’s Australian and New Zealand businesses.
• New products and services that have been recently developed and installed to various
clients include:
Canvas, a proprietary CMS solution for online Betting, Lottery and Interactive Games
Remote Gaming Server delivering e-Instants and Games on-Demand or on-Premise to clients
Interactive Gaming Platform, a CRM platform segmenting and managing customer behavior
Mobile applications (iOS, Android) with push notifications and real money gaming
Self Service Terminals (SST), the next generation of self-service terminals for autonomous play, following
the success of the first generation machines in the US
September 2016 | Public | Final | Page 4 of 18
Results – Graphs 1H16
+2.9% +10.9%
Continuing
operations
Continuing
operations
Continuing
operations
Continuing
operations -
Constant FX
Continuing
operations -
Constant FX
Continuing
operations -
Constant FX
+15.4% +26.0%
€17.8m €6.8m
Continuing
operations
(like-for-like)
618.9 636.9 618.9713.9
1H15 1H16 1H15 1H16
Revenues
80.288.9
80.2
101.0
1H15 1H16 1H15 1H16
EBITDA
-22.7
-15.9
-28.0
-10.2
1H15 1H16 1H15 1H16
NIATMI
494.3 484.2 486.8 497.2
Sept 15 Dec 15 Mar 16 Jun 16
Net Debt
September 2016 | Public | Final | Page 5 of 18
292.9331.9
292.9
369.7
2Q15 2Q16 2Q15 2Q16
Revenues
37.944.4
37.9
50.6
2Q15 2Q16 2Q15 2Q16
EBITDA
-15.9
-6.0
-12.9
-5.2
2Q15 2Q16 2Q15 2Q16
NIATMI
486.8 483.2
Mar 16 Jun 16
Results – Graphs 2Q16
+13.3% +17.1%
Continuing
operations
Continuing
operations
Continuing
operations
Continuing
operations -
Constant FX
Continuing
operations -
Constant FX
Continuing
operations -
Constant FX
+26.2% +33.4%
€7.7m €9.9m
Continuing
operations Div Outflow: 12.5
FX: 1.5
M&A: 13.6
Net Debt
September 2016 | Public | Final | Page 6 of 18
1H16 Results – Cash Flow
• Operating Cash-flow more than doubled in 1H16, at €86.2m vs. €41.8m in 1H15. The
growth is mainly attributed to the WC improvement (+1.4m in 1H16 from -30.7m in
1H15).
• Net Capex in 1H16 was €26.4m, compared to €34.4m in 1H15. Major Capex items in
1H16 include investments in our US business of €9.7m and R&D of €3.8m.
• Net Debt from continuing operations in June 2016 developed at €510.8m from €486.8m
in March 2016 on a like-for-like basis. Excluding the €13.6m capital contribution to the
Italian entity as a result of the M&A transaction Net Debt increased by €10.4m due to
dividend outflows to JV partners and FX valuation at the end of June 2016.
September 2016 | Public | Final | Page 7 of 18
1H16 Results
% %Change Change
Revenues (Turnover) 636.9 618.9 2.9% 331.9 292.9 13.3%
Gross Profit 119.2 116.1 2.7% 60.3 54.6 10.4%
EBITDA 88.9 80.2 10.9% 44.4 37.9 17.1%
EBITDA Margin (%) 14.0% 13.0% +1.0pps 13.4% 12.9% +0.4pps
EBT 19.6 25.7 -23.9% 9.4 5.4 73.0%
EBT Margin (%) 3.1% 4.2% -1.1pps 2.8% 1.9% +1.0pps
NIATMI from continuing operations -15.9 -22.7 - -6.0 -15.9 -
NIATMI from discontinuing operations 35.3 -8.3 - 37.4 -6.1 -
Consolidated Financial Statements For The 6 Months
Ended June 30th, 2016
(in € million) 1H16 1H15 2Q16 2Q15
September 2016 | Public | Final | Page 8 of 18
Segmental Analysis
September 2016 | Public | Final | Page 9 of 18
Contract type Sales Breakdown
1H 2016 Sales Breakdown 1H 2015 Sales Breakdown
Management
Contracts
9.4%
Technology
17.4%
Management
Contracts
8.2%
Technology
16.1%
Licensed Operations
73.2%
Licensed Operations
75.7%
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
September 2016 | Public | Final | Page 10 of 18
Revenue per Product Analysis
-0.5%
5.2%
75.7%
-34.2%
5.7%2.9%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Revenues Growth Analysis 1H16 vs 1H15
Sports Betting VLTs/ AWPsIT products &services, etc
Consolidatedrevenues
RacingNumerical
September 2016 | Public | Final | Page 11 of 18
Revenue per Product Contribution
Sports % of total 35.4%
Numerical % of total 47.1%
VLTs/AWPs % of total 3.1%
Racing % of total 2.5%
IT products & services, etc % of total 11.9%
Revenue Analysis 1H16
September 2016 | Public | Final | Page 12 of 18
Wagers – Regional Analysis 1H16
3.1%
-1.3%
0.6%
15.4%
-13.6%
-7.6%
21.1%
0.8%
-20%
-10%
0%
10%
20%
30%
40%
East Europe West Europe Total Europe North America South America Asia Africa Total
% chg in Euro
September 2016 | Public | Final | Page 13 of 18
Wagers – Contribution per region
Total Wagers €12.3bn (+0.8% y-o-y)
East Europe 2,026
West Europe 2,542
North America 3,271
South America 425
Asia 3,941
Africa 136
Wagers Analysis per region 1H16in Euro million
September 2016 | Public | Final | Page 14 of 18
Appendix Summary Financial Statements
September 2016 | Public | Final | Page 15 of 18
1H16 – Group Income Statement
(in € million) 1H16 1H15%
change
Revenues 636.9 618.9 2.9%
Gross Profit 119.2 116.1 2.7%
Other Operating Income 10.2 12.4 -17.6%
OPEX 73.9 80.8 -8.5%
EBITDA 88.9 80.2 10.9%
margin 14.0% 13.0%
EBIT 55.5 47.7 16.3%
Interest expense (net) -27.9 -26.9
Exchange differences -3.1 5.8
Other -4.9 -0.9
EBT 19.6 25.7 -23.9%
NIATMI continuing -15.9 -22.7 n.m.
NIATMI discontinuing 35.3 -8.3 n.m.
Consolidated Income Statement for the 6 Months
Ended June 30th
, 2016
September 2016 | Public | Final | Page 16 of 18
1H16 – Group Balance Sheet
(in € million) 30/6/2016 31/12/2015
Tangible Assets 135,5 172,3
Intangible Assets 321,9 328,8
Other Non-Current Assets 205,4 146,3
Inventories 38,7 42,6
Trade receivables 95,9 123,1
Other Current Assets 315,9 356,3
TOTAL ASSETS 1.113,3 1.169,3
Share Capital 47,7 47,7
Other Equity Elements 98,9 81,9
Non-Controlling Interests 61,7 77,8
Total Shareholders Equity 208,3 207,4
Long-term Debt 508,1 718,1
Provisions/ Other Long term Liabilities 45,9 48,8
Short-term Debt 215,8 36,2
Other Short-term Liabilities 135,3 158,9
Total Liabilities 905,1 961,9
TOTAL EQUITY AND LIABILITIES 1.113,3 1.169,3
September 2016 | Public | Final | Page 17 of 18
1H16 – Group Cash Flow (in € million) 1H16 1H15
EBT from continuing operations 19.6 25.7
EBT from discontinuing operations 36.3 -8.1
Plus/less Adjustments 44.0 71.3
Decrease/(increase) of Inventories -0.2 1.6
Decrease/(increase) of Receivable Accounts -0.3 -13.1
(Decrease)/increase of Payable Accounts 1.8 -19.2
Income Tax Paid 15.0 16.5
Net Cash from Operating Activities 86.2 41.8
CAPEX -28.7 -36.0
(Purchases) / Sales of subsidiaries & other investments -20.3 12.1
Interest received 4.7 7.4
Dividends received 1.0 1.9
Net Cash from Investing Activities -43.3 -14.6
Subsidiary share capital return -3.4 0.0
Repurchase of own shares -0.2 0.0
Cash inflows from loans 22.1 24.8
Repayment of loans -35.8 -24.5
Bond buy-backs -14.3 -39.7
Repayment of Leasing Obligations -5.7 -5.8
Interest and similar charges paid -31.5 -33.8
Dividends paid -28.0 -19.7
Net Cash from Financing Activities -96.8 -98.6
Net increase / (decrease) in cash for the period -53.9 -71.4
Exchange differences -3.2 -5.6
Cash at the beginning of the period 276.6 416.9
Cash at the end of the period from total operations 219.5 339.9
Less: Cash at the end of the period from discontinued operations -6.4 0.0
Cash at the end of the period from continuing operations 213.1 339.9
September 2016 | Public | Final | Page 18 of 18
.A GLOBAL LEADER . YOUR LOCAL PARTNER
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