Lottomatica Group S.P.A. · MIL:LTMC
Lottomatica — Q1 2004 Earnings Presentation
22 slides from Lottomatica's earnings presentation, May 13, 2004
Slide 1: 2004 First Quarter Results
2004 First Quarter Results Rome, May 13th, 2004 1
Slide 2: Disclaimer
Disclaimer THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE AT ANALYST PRESENTATION IN ROME. THE INFORMATION CONTAINED HEREIN HAS NOT BEEN INDEPENDENTLY VERIFIED. NONE OF THE COMPANY OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER IN NEGLIGENCE OR OTHERWISE FOR ANY LOSS HOWSO
Slide 3: Agenda
Agenda 1. First quarter 2004: highlights 2. First quarter 2004: Results 3. First quarter 2004: Main events after 1Q 2004 3
Slide 4: Agenda
Agenda 1. First quarter 2004: highlights 2. First quarter 2004: Results 3. First quarter 2004: Main events after 1Q 2004 4
Slide 5: Highlights 1Q 2004
Highlights 1Q 2004 REVENUES EBITDA +63.6% +14.7% €200Mln €100Mln 154.1 79.0 150 134.3 75 100 50 48.3 50 25 0 0 March ‘04 1stQ 2003 March ‘04 1stQ 2003* Actual Actual n.b.:2003 revenues and Ebitda restated to reflect 1/4 of car road tax pos annual subscriptions 5
Slide 6: Lotto Wagers – 1Q 2004 vs 1Q 2003
Lotto Wagers – 1Q 2004 vs 1Q 2003 +279 Delta 2004 vs 2003 €2000Mln 1,961 16.6% 368 1,682 52.1% 1.500 242 1.000 1,593 1,440 10.6% 500 0 March 2004 March 2003 Actual • +17% vs. 2003 as a result of: - High wagers on late numbers - Marketing and communication activities 6
Slide 7: Sports Games January – March 2004
Sports Games January – March 2004 Lottomatica TRIS TRIS TOTOCALCIO TOTOCALCIO Competitors K€ K€ 184.486 161.926 157.226 Wager/ Wager/ Market share 27,06% 11,80% 14,94% 2004 2003 2004 Actual REVENUES (K€) 317 391 1.687 n.b.: Tris data pro forma to include wagers and commission of Twin 7
Slide 8: Services highlights 1Q2004
Services highlights 1Q2004 ON- ON-LINE PHONE TOP – UP CARDS - 47,6 m recharges sold vs. 21.1 m in 1Q2003 - Decreasing average size of the recharging (€ 13.1 vs. € 17.6 in 1Q2003) and conseguent reduction of commission (€ 0.15 vs € 0.20 in 1Q2003) - revenues: € 6.3 m vs. € 4.0 m in 1Q2003 - Pos: 38,2
Slide 9: Agenda
Agenda 1. First Quarter 2004: Main events 2. First Quarter 2004: Results 3. First quarter 2004: Main events after 1Q 2004 9
Slide 10: Net revenues 31.03.04 vs. 31.03.03
Net revenues 31.03.04 vs. 31.03.03 31.03.04 31.03.04 31.03.03 31.03.03 Lotto Lotto 127.0 127.0 109.4 109.4 Sports Sports Games Games 2.9 2.9 0.7 0.7 13.0 13.0 8.6 8.6 **** * Services Services 9.9 10.7 ** Bingo Bingo 9.9 10.7 Other Other 1.2 1.2*** 4.9 4.9 Total Total revenues revenues 154.1 154.1 13
Slide 11: Revenues 1Q 2004 vs. 1Q 2003
Revenues 1Q 2004 vs. 1Q 2003 +16,1 2.1 0.5 154.1 € 150 Ml 17.6 (0.5) (3.6) 134.3 (*) 3.7 100 50 0 1Q 2003 Delta Lotto Lis GBC Sports Other 1Q 2004 Consolidation (recharges) recharges) Games (PCC, Area** (Tris) betting) betting) (*) Car road tax revenues restated (3/12) (**)of which € 2.7 m Sports Ga
Slide 12: Services – Revenues 1Q 2004 LIS + TOTOBIT
Services – Revenues 1Q 2004 LIS + TOTOBIT 20 Other services Ticketing Licence TV +34% Car road tax 16 Top up cards 13.0* 12 1.8 1.4 Totobit 0.4 LIS 0.9 0,6 9.8** 0.9 0.7 Totobit 0.2 LIS 8 3.5 0.6 0.7 3.6 4 6.3 4.0 0 Actual march 2004 Actual marzo 2003 POS LIS 22,329 22,481 POS TOTOBIT 15,879 6,505 *
Slide 13: Bridge opex 1Q2004 vs. 1Q2003
Bridge opex 1Q2004 vs. 1Q2003 - 8.9 € 100 Ml 86.0 83.9 (2.1) 75.0 75 (5.7) (1.9) (1.3) 50 25 0 March Delta March Network Paper Other 2004 ytd 2003 Consolidation 2003 (migration) migration) costs Area SDLC - IP 13
Slide 14: Ebitda 31.03.04 vs. 31.03.03
Ebitda 31.03.04 vs. 31.03.03 31.03.04 31.03.04 31.03.03 31.03.03 Lotto Lotto 69.3 69.3 44.5 44.5 Sports Sports Games Games (0.6) (0.6) (0.9) (0.9) Services Services 6.3 6.3 3.6 3.6 Bingo Bingo 3.0 3.0 (0.1) (0.1) Other Other 1.0 1.0 * 1.2 1.2 Total Total revenues revenues 79.0 79.0 48.3 48.3 All fig
Slide 15: Bridge Ebitda 1Q 2004 vs. 1Q 2003
Bridge Ebitda 1Q 2004 vs. 1Q 2003 +28.1 +17.6 revenues 100 ml -7.2 costs 0.4 2.2 0.7 24.8 79.0 2.6 50 48.3 0 Actual Delta Lotto GBC Lis Other Actual mar 2003 Consolidation (recharges) ) recharges (Tris, PCC, mar 2004 Area Betting) Betting) 15
Slide 16: Capex 1Q 2004 vs 1Q 2003
Capex 1Q 2004 vs 1Q 2003 31.03.04 31.03.04 31.03.03 31.03.03 Lotto Lotto 3.5 3.5 16.0 16.0 Instant Instant lotteries lotteries 3.3 3.3 0.0 0.0 GBC GBC 1.2 1.2 0.0 0.0 Services Services 0.6 0.6 0.2 0.2 Other Other 0.1 0.1 13.4 13.4 Total Total 8.8 8.8 29.6 29.6 16
Slide 17: Consolidated Income Statement at 31 March 2004
Consolidated Income Statement at 31 March 2004 31.03.2004 31.03.2004 31.12.2003 31.12.2003 Revenues Revenues 348.3 348.3 248.9 248.9 Net revenues(*) Net revenues (*) 154.1 154.1 134.3 134.3 Opex(*) Opex (*) (75.1) (75.1) (86.0) (86.0) EBITDA EBITDA 79.0 79.0 48.3 48.3 Ebitda Ebitda % % 51.3% 51.3% 3
Slide 18: Balance sheet structure at 31 March 2004
Balance sheet structure at 31 March 2004 31.03.2004 31.03.2004 31.12.2003 31.12.2003 Intangible assets 501.4 515.1 Tangible assets 145.7 152.0 Financial assets 4.2 14.4 Total fixed assets 651.3 681.6 Trade receivables 61.6 43.0 Other assets 125.3 130.0 Trade payables 123.9 120.9 Other current liabil
Slide 19: PFN e Cash Flow
PFN e Cash Flow 1Q 1Q 04 04 31.12.03 31.12.03 Initial Initial NFP NFP (164.8) (45.2) Cash Cash Flow Flow from from operations operations 35.7 188.9 Capex Capex (8.8) (16.3) Dividends Dividends - (292.2) Other Other 16.0 - End End of of period period NFP NFP (121.9) (164.8) All All figures figures in
Slide 20: Agenda
Agenda 1. First quarter 2004: highlights 2. First quarter 2004: Results 3. First quarter 2004: Main events after 1Q 2004 20
Slide 21: Main events after 1Q2004
Main events after 1Q2004 Videolotteries public tender published ¾ Deadline for bidding 7 June 2004 ¾ 5 + 1 year Concession Instant Lotteries about to start ¾ Start up of tickets distribution by end of May ¾ Launch in first decade of June ¾ Advertising campaign to start in 2nd/3rd decade of June 2 Eu
Slide 22: Lotto – April 2004
Lotto – April 2004 + 93.6 +138.3 Delta 2004 Delta 2004 750 mln su Bdgt su 2003 722.2 628.6 +23.7% +14.9% 583.9 279.8 177.7 137.5 +103.5% +57.5% 500 250 442.4 446.4 450.9 - 0.9% -1.9% 0 Aprile 2004 April 2004 April 2003 Bdgt April wagers: wagers +15% vs 2003 despite fewer draws (8 vs 9) 7 RM drawn at