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NVIDIA Silicon Valley’s new headliner

PROFILE Bobst’s return to grace

FRANCE Trading through the presidential election

DOSSIER SPORT

: HOW COMPANIES ARE CASHING IN : HOW COMPANIES FEVER HOW COMPANIES ARE CASHING IN Ultra-competitive TV rights Online betting’s boom The rise of “athleisure”

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EDITORIAL SWISSQUOTE MAY 2017 Sport on every screen

Marc Bürki, CEO of Swissquote

elevision channels know many listed companies are gaining perfectly well the winning from that momentum. The popular- formula to achieve record au- ity of all things sport reverberates Tdience numbers. All they have to do is out to business sectors ranging air major sporting events, preferably from online betting, fashion, wear- those involving a round ball. Take any able technology and fitness. country on earth, and the best TV ratings by far go to sport competitions. What may come as a surprise is that This is true of Switzerland, where the major TV networks are now encoun- national football team, or “ Nati ”, is a tering turbulent times. The relentless household ubiquity when going head battle over broadcasting rights forces on in an important match, not to men- them to spend what can escalate tion the country’s superstar Roger into ridiculous sums. Up to now, their Federer. The Switzerland–Honduras business model worked. It was safe confrontation during the FIFA World and predictable. But high-tech giants Cup in Brazil, which propelled the are trampling all over their monopoly. Swiss national team into the last 16, They want in. For example, Facebook was watched in its entirety by more is negotiating an agreement with than 70% of the country’s TV viewers American Major League Baseball present in front of their screen. That’s to stream games live. Last year, almost 2 million people. An all-time Twitter signed a similar partnership record. And FIFA estimates that deal with the prestigious American more than 1 billion people world- National Football League (NFL). wide watched the World Cup final. Amazon just obtained livestream broadcasting rights for NFL Thurs- On another continent with other cus- day Night Football games this year. toms but the same passion for sport entertainment, in the United States, Understandably, sport federations one of the rare countries where and headline event organisers have soccer has only a modest impact, every interest to form these new American football crushes ratings alliances. They enable these or- across the board with every Super ganisations to reach a wider and Bowl. This year’s game in February often younger audience that doesn’t 2017 was viewed live by 111 million necessarily want to pay for ca- Americans, i.e. more than one-third ble television. And in some cases, of the population. That’s three times they don’t even have a TV! Sports more viewers than for the Oscars. mania is not about to subside, so just stick with the winning team. No doubt about it, people still go p. 32 crazy for sport. As our report shows, Enjoy !

3 DOSSIER SPORT FEVER 32 HOW COMPANIES ARE CASHING IN

NVIDIA

TABLE OF CONTENTS

3. EDITORIAL 18. PORTRAIT 32. DOSSIER : by Marc Bürki Bobst : mission SPORT FEVER accomplished HOW COMPANIES ARE CASHING IN 6. SCANS Economic 24. INVESTOR 34. Infographic : 48. Football : survey INTERVIEW growing sectors publicly traded clubs face tough equations Artificial 36. The ultra-competitive 14. TRENDS intelligence in the world of TV rights 52. Triumph Personalities, hands of web giants of the tracksuit nations, 42. eSports in innovations 26. TECHNOLOGY the big league 56. The fitness Nvidia, market flexes 16. THE MATCH Silicon Valley’s 44. Sports betting : its muscles UBS vs new headliner the game is on Credit Suisse

4 TABLE OF CONTENTS SWISSQUOTE MAY 2017

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Manager 62 Brigitta Cooper SPACE FRENCH ELECTION EDITORIAL

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Photography AFP, iStockphoto, Newscom, Reuters, Keystone

TRAVEL Editing (English version) Ose Ayewoh, Marco Simon

Translation Technicis Finance

62. SPACE 76. CARS PRINTING, BINDING AND DISTRIBUTION Shoot for the stars Large-scale Stämpfli Ltd. sportiness Wölflistrasse 1 - 3001 Bern 68. SWISSQUOTE www.staempfli.com Trading through the 80. PRIVATE ISSUES ADVERTISING presidential election Monika Rühl, Infoplus AG Director of Traubenweg 51, CH-8700 Küsnacht 72. TRAVEL economiesuisse [email protected] The two sides WEMF of Dublin REMP 2016 : 50,756 ex. Print run : 60,000 ex.

SUBSCRIPTIONABONNEMENT CHF 40.-40 FOR pour 6 6ISSUES numéros www.swissquote.ch/magazinewww.swissquote.ch/magazine/f/ NVIDIA / ISTOCK BOBST AFP EYEPRESS MANHHAI GIUSEPPE MILO

5 SWISSQUOTE MAY 2017 SCANS

fashion SEE NOW, BUY NOW : NEW TRENDS IN THE FASHION INDUSTRY

“ I didn’t think we were ready to come to Italy. I am so respectful of the Italian Big fashion brands, coffee heritage such as Burberry, now sell their and I think we products the same day they debut in had to earn fashion shows. BURBERRY that respect. ” Howard Schultz, Fast fashion brands such as Zara and rather than wait the traditional four CEO of Starbucks, H&M have forced major names in the months. This practice, dubbed “ see now, announcing the opening fashion world to reconsider their busi- buy now ”, has increased sales for Tom- of its first store ness models. Several luxury brands, my Hilfiger by 4% in the quarter that fol- in Milanin 2018. such as Burberry, Ralph Lauren, Tom lowed last autumn’s fashion weeks. The Ford and Tommy Hilfiger have begun to brand’s website saw a 900% increase in make collections available to the public traffic and several pieces were sold out at the same time as fashion shows, within 24 hours. BRBY RL

digital CLOVA, ASIA’S VIRTUAL ASSISTANT

South Korean company Naver, which owns the social network Line, has just unveiled a virtual assistant named Clova. 29% Unlike its rivals such as Alexa from The percentage of electric Amazon, Siri from Apple and Google As- or hybrid cars among sistant, Clova is programmed to respond new cars sold in effectively to questions from an Asian 2016 in Norway. The public. It can speak Korean and Japanese. Scandinavian country is Clova was initially suggested as an app expected to have 400,000 and will also be integrated into the Wave of these vehicles speaker. The assistant will be available on the roads by 2020. to buy this spring, first in South Korea Norway is now the world and Japan, and then in Thailand and Indonesia. 035420 leader in electric vehicles. DR

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pharma RANKING ACTELION FOUNDERS LAUNCH A START-UP THE TOP FIVE RENEWABLE Jean-Paul and Martine Clozel have sold ENERGIES THAT EMPLOY THE Actelion, the Basel-based biotech firm MOST WORKERS IN THE WORLD they founded 20 years ago, to Johnson 1. SOLAR ENERGY & Johnson for $30 million. But they’re 2,772,000 not going to retire. Instead, the two 2. BIOFUEL doctors are launching a new start-up that will continue the research they 1,678,000 1,000 began at Actelion for neurological dis- 3. WIND ENERGY eases, lupus and insomnia. The start-up 1,081,000 The number of women aims to develop new medications to 4. SOLAR HEATING (of those who treat these diseases. It will be listed on 939,000 temporarily left the the Swiss stock exchange and will have work market) that UK 5. BIOMASS $1 million in initial capital. Johnson & 822,000 company Vodafone Johnson will hold a 16% stake in the aims to recruit over start-up. the next three years. Source : Renewable Energy Globally, 96 million Policy Network REN21 women aged 30 to 54 have put their careers THE FIVE SECTORS THAT ARE on hold, which is a THE MOST THREATENED BY huge loss of expertise. AUTOMATION IN THE WORLD VOD (number of jobs due to disappear) 1. AGRICULTURE, FORESTRY, HUNTING, FISHING 328.9 MILLION construction 2. MANUFACTURING IMPLENIA ON THE RIGHT TRACK 237.4 MILLION 3. RETAIL TRADE 187.4 MILLION 4. CONSTRUCTION 82.2 MILLION 5. ADMINISTRATION 63.2 MILLION

Source : McKinsey

THE FIVE MOST UNPOPULAR STOCKS ON THE NYSE (based on the number of stocks sold in a short sale)

1. PFIZER 137.2 MILLION The Zurich-based group increased its 2. CHESAPEAKE ENERGY profitability last year. 119.47 MILLION

IMPLENIA 3. SPRINT Swiss construction giant Implenia is Swiss francs. The Zurich-based com- 119.3 MILLION making moves in Northern Europe. pany made 64.4 million Swiss francs in 4. WEATHERFORD It just signed a contract in Sweden profits in 2016, an increase of 24%. It 118.1 MILLION worth 80 million Swiss francs to build also purchased its German competitor, 5. ALIBABA GROUP a bypass road in Stockholm. It will Bilfinger Construction, at the begin- 113.7 MILLION also carry out work on a trunk road ning of March. This acquisition will give connecting Bergen and Trondheim on Implenia greater access to the con- Norway’s west coast for 38.2 million struction market in Germany. IMPN Source : 24/7 Wall St

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SCANS Business is booming for the UK brand of premium drink mixers, Fever-Tree.

-1% Twitter’s decline in advertising revenue last quarter, averaging at $638 million. The social network is struggling to host video advertisements, which are more profitable. Video advertising is more prevalent on competitor networks Facebook and

YouTube. TWTR YELP

raw materials MINING GIANTS ARE SMILING AGAIN After a catastrophic 2015 when the price Anglo American made $1.6 billion in 2016, of raw materials dropped significantly, big a vast improvement from the $5.6 billion mining groups saw income improvements deficit in 2015. Glencore is no longer in in 2016. BHP Billiton made $3.2 billion the red, making $1.4 billion in profit in in the second half of the year, compared 2016, compared to the $5 billion it lost to the $5.7 billion it lost the year before. a year before. BLT AAL GLEN “ I must fundamentally change as a leader and grow up ” Travis Kalanick, CEO of Uber, following a series of verbal and sexual BHP Billiton was harassment scandals chosen by the towards employees Mexican government. and drivers. The Australian company was awarded a significant deep-water oil field contract (3 March 2017). NEWSCOM / GDA / EL UNIVERSAL MÉXICO NEWSCOM / GDA

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food SODA FOR ADULTS KICKSTARTER The target demographic for soda is traditionally children and adolescents, which is reflected in the ingredients and marketing of the bubbly drinks. Now, several brands have decided to market soda to adults. The new sodas have less sugar and are more bitter. Thomas & Evans, a new brand marketed by UK-based Britvic, will have notes of elderflower, green fruits and oak. An- other soda brand, Fever-Tree, advertises ingredients such as lemons from Sicily and green ginger from the Ivory Coast. Fever-Tree’s stock price almost doubled in 2016. BVIC FEVR ROCKETBOOK WAVE

SELFLY The selfie stick of the future

Selfly is a smartphone case with a propeller and camera. When folded, it measures no more than 9 mm thick and can slide into a pocket. Once it detach-

digital es from your smartphone, the LOGITECH TARGETS GAMERS Selfly’s four mini propellers send it soaring into the air to film or In September, Logitech announced its desire to re-establish photograph the scene below. itself as a market leader in webcams. It has done just that Users control the engine via an with the Brio, a camera that can film in 4K Ultra HD. The Brio app downloaded beforehand. Im- is now the camera with the best resolution on the market. ages filmed by this pocket drone The $199 price tag is also quite competitive. The Vaud-based are sent to the smartphone company aims to target the gaming community with the new controlling it and can be shared camera. It also plans to build on the success of streaming instantly on social media. Selfly platform Twitch, which broadcasts videos of gamers playing will be on sale for $139 (only various games and e-sport competitions (see also p. 42). $99 for those who supported LOGN the campaign on Kickstarter). Currently it is compatible with iPhone 6 and 7 Plus, Samsung Galaxy S6 and S7 and Motorola Nexus 6. Your selfie stick will be a thing of the past.

FUNDS RAISED AVAILABILITY $1,048,262 JUNE 2017 LOGITECH

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SCANS healthcare FRENCH-SPEAKING SWITZERLAND’S HEALTH VALLEY IS ATTRACTING INVESTORS

French-speaking Switzerland, driven by the Swiss Federal Institute of Techno- logy in Lausanne (EPFL), is now home to more than 900 companies active in life sciences. That makes it one of the world’s most important regions in the “ We are industry. These companies brought in 550 prepared to million Swiss francs in financing last year, according to startupticker.ch. The past supply our few weeks in the region have been packed materials to with a solid series of IPOs and fund-raising rounds. The Geneva-based start-up all types of ObsEva announced in early March that it infrastructure had landed 97 million Swiss francs on the Nasdaq since January. The biopharmaceu- projects in the tical company AC Immune in the canton of United States ” Vaud said that it has drawn in 70 million Swiss francs since it began trading on the Eric Olsen, Nasdaq in September 2016. At the end of head of French-Swiss cement March, the heart valve specialist Symetis, manufacturer LafargeHolcim, which operates out of Lausanne, launched questioned by AFP about its IPO on the Paris stock exchange, in- the possible participation creasing its share capital by €50 million. of the group in the construction of the wall OBSV ACIU SYMS on the Mexican border.

aviation SWISS IS MAKING MOVES IN EUROPE

$35

The monthly cost of YouTube’s new

streaming service ANDREW&&ANNEMARIE in the United States. Swiss is expanding its offer in Europe. Starting this summer, Subscribers have the airline will offer five new European destinations : Bergen access to more than (Norway), Cork (Ireland), Sylt (Germany), Figari (Corsica) and 40 television channels. Niš (Serbia). It will also increase services to Berlin, Dublin, In comparison, cable Gothenburg, Naples and Vienna. It will use its new Bombardier TV costs an average C Series planes, including the CS300, which are more comfort- of $100 a month able and more environmentally friendly. Swiss will offer a total in the US. of 77 European destinations in 2017. LHA

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$49.4 bn

The amount British American Tobacco spent to acquire its rival Reynolds, which sells the brands Camel, Newport and Vuse. The transaction creates the largest cigarette company in the world and will enable the British company to expand its vaporiser offer. BATS “Health Valley” day at the EPFL (12 May 2015). KEYSTONE / JEAN-CHRISTOPHE BOTT

FLOP food The drone MARS DIVERSIFIES that couldn’t fly Faced with declining sales in the con- fectionary market, Mars has decided Drones have one job : to the device, and as a to enter the booming domestic animals to stay in the air. Un- result, some drones fell market. The US group just acquired fortunately, Karma, the from the sky. One of them the veterinary hospitals chain VCA newest GoPro model, crashed into a window of for $7.7 billion. It already owns rival didn’t fly so well. Dur- an apartment on the 27th companies Banfield and BluePearl. This ing its highly publicised floor of a skyscraper in acquisition extends Mars’ portfolio in launch last summer, the New York. The defective animal clinics, a market that is worth California-based company drones were recalled, $4 billion per year, with 1,700 loca- announced a drone that the manufacturing error tions. In 2014, Mars acquired the animal food division of Procter & Gamble. could fly silently and was was repaired, and a new It holds a market share of 25%, esti- easy to transport. But a version of the Karma was mated at $72 billion globally. problem with the battery available for sale in early latch disrupted the power 2017. GPRO

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SCANS

automobile PEUGEOT GAINS GROUND IN EUROPE

The SUV Peugeot 3008, the 2017 car of the year, is a symbol of Peugeot PSA’s revival. “ I have this vision that in the next five to 10 years the air fares on Ryanair will be free, in which case we will be making our money out of getting a share

AFP / ERIC PIERMONT of the shopping French group Peugeot PSA acquired where it has lost more than $15 billion and the retail the Opel and Vauxhall brands from since 2000 and was never profitable. US-based General Motors for €2 billion. GM’s French competitor Peugeot is gain- revenues at This transaction completely changing ground, becoming the second-larg- airports ” es the automobile market. General est auto group in Europe with a 16% Motors, based in Detroit, has effec- market share, behind BMW and ahead Michael O’Leary, tively given up its presence in Europe, of Renault-Nissan. UG CEO of Ryanair.

banking IPO GET CASH USING YOUR SMARTPHONE SNAP MAKES A NAME FOR ITSELF IN NEW YORK In the United States, several banks are rolling out ATMs that identify users via the RFID chip in their smartphone or a QR code Snap, parent company of social shares are overpriced. In 2016, they receive through an app. JP Morgan media network Snapchat in Snap lost $515 million. It began Chase tested this technology on a few which messages disappear sharing adverts on its “ Stories hundred ATMs in Miami and San Francisco right after they are read, had and Discover ” feed and offer- and is preparing to extend it to 6,000 other the most anticipated IPO after ing sponsored photo filters, but machines. Bank of America and Wells Twitter’s in 2013. It did not neither generated much money. Fargo have similar projects in the works. disappoint : the share price It does have a sizeable advan- Some banks are going even further. In began at $24 on the New York tage, though : Snapchat is the Brazil, Banco Bradesco customers can stock market, well above its of- preferred app among millenni- take out cash by tapping the palm of their fering price of $17. As a result, als, the most targeted demo- hand on a scanner. Citibank has developed the California company raised graphic. In the United States, an ATM that scans its customers’ irises as $3.4 billion. Most analysts, 41% of millennials aged 18–34 proof of identification. AMJ C however, believe that Snap use Snapchat daily. SNAP

12 Powerful, fluid contours and a characteristic waveform shoulder line make the new A5 Sportback a true design icon. Its standard Audi LED headlights provide daylight-like illumination of the road for your safety. For more information contact your Audi dealer. audi.ch SWISSQUOTE MAY 2017 TRENDS

the country AUSTRALIA A China-reliant economy

When the Australian economy shrank 0.5% in Population Q3 2016, the population the figure 24.4 million DARREN WOODS was stunned. In all its 7.7 million square kilo- GDP per capita metres, this gargantuan Exxon Mobil’s $54,708 country hasn’t seen a recession in 25 years. A few new kingpin fits the bill Growth in 2015 months later they heaved 2.4% a sigh of relief when the President Trump’s appointment of Rex Tillerson as US economy started to pick up Secretary of State left an opening for CEO of Exxon Main again, growing 2.4% overall Mobil. This position was filled by Darren Woods, who economic in 2016. Australia owes took the helm of the oil giant in early 2017. The Kan- sectors its resilience to its big- sas-born leader joined the Texas-based company in Mining, gest export market, China, 1992 as a planning analyst, and was made vice pre- agriculture, whose impressive growth sident of ExxonMobil Chemical Company in 2005. In services over the past 10 years has 2008, he moved to Brussels to work at ExxonMobil boosted the Australian Refining and Supply Company as the director of re- mining sector, particularly fining for Europe, Africa and the for iron and coal extraction. Australia Middle East. He returned stateside also exports beef and milk products to in 2010, quickly becoming vice the Chinese. In 2016, exports of these Position president and then president of commodities to the Asian industrial CEO of Exxon Mobil Corporation in 2016. giant were worth 86 billion Australian Exxon Mobil His arrival coincided with a critical dollars (65.5 billion Swiss francs), moment for Exxon Mobil : last year or 27.5% of total exports. But this Age the group’s profits plummeted and heavy reliance is a weak point for the 52 years old its share price is currently dragging Australian economy, as is the volatility its feet due to its overexposure to in commodities markets. Should iron Nationality natural gas and shale gas, which or steel prices drop or the Chinese American entail significant extraction costs. construction market experience a XOM slowdown, the blow would be fatal.

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Ultimate luxury or passport to hell ? The connected bracelet provided to Carnival Corporation cruise customers CORPORATION CARNIVAL will keep watch over them at all times.

the innovation A SMART CRUISE WEARABLE Company Carnival Corp

One wearable to predict your every need Launch November 2017 The American group Carnival throughout the ship – to make your might be offered Estimated Corporation has invented the first trip as pleasant as possible. For exa- a margarita. The cost truly smart cruise. When the 3,560 mple, as you approach your room, you purpose of the A few hundred passengers come aboard the Regal will find the door unlocked, the light Ocean Medallion, million ($) Princess, one of Carnival’s ships, on and the air-conditioning running. which was deve- they will each receive a smart brace- If you decide to take a stroll on deck, loped by those let called the Ocean Medallion. The the screens within your field of vision who invented innovative medallion analyses your will suggest activities you might the Magic Band used in Disney theme every move and slightest gesture enjoy. A passenger who played sports parks, is to predict the every whim of using 7,000 sensors connected to for three days might be invited to passengers while also selling them the Ocean Compass – a network of play basketball. Someone who spent more services and saving a buck or 4,000 high resolution screens located the majority of their time poolside two on the electricity bill. CCL

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THE MATCH

REVENUE BASEL III CET1 CHANGE IN NET EARNINGS (2016) SOLVENCY RATIO (2016)

CHF 28.3 CHF 20.3 13.8% 13.5% -48.3% +8% BILLION BILLION

NET EARNINGS GROSS DIVIDEND (2016) UBS YIELD VS

+CHF 3.2 -CHF 2.7 3.81% 4.83% BILLION BILLION CREDIT SUISSE

ASSETS MARKET NUMBER CAPITALISATION OF EMPLOYEES

CHF 935 CHF 819.8 CHF 60.8 CHF 32.3 59,387 47,170 BILLION BILLION BILLION BILLION

SALARIES (2016)

UBS CREDIT SUISSE SERGIO ERMOTTI, CEO TIDJANE THIAM, CEO CHF 13.7 MILLION CHF 11.9 MILLION

BY BENJAMIN KELLER

Credit Suisse remains in the red. But of more than $2 billion was put in place however, fell 4.5% when the company’s Switzerland’s second-largest bank in Q4 2016 for this purpose. The bank 2016 earnings were released on 27 is slowly picking up. The deficit was continues its restructuring, with 5,500 January. Profits dropped by nearly half, reduced to 2.7 billion Swiss francs in layoffs expected in 2017, following affected by litigation, regulation and 2016, compared with 2.9 billion the 7,250 layoffs the year before. Reducing other fees (693 million Swiss francs) as year before. The remaining amount is the workforce increased capital beyond well as restructuring costs (1.46 billion due in large part to the $5.3-billion fine expectations. When the yearly results Swiss francs). In 2016, however, UBS imposed by the US government to end were released on 14 February, Credit made a comeback in North American the subprime lending crisis. A provision Suisse’s stock went up 2.3%. UBS stock, wealth management. CS UBSN

Sources : financial reports, Bloomberg.

16 challenge everything

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HYT-Ad-SwissQuote2-200x260-H2Tradition-PosCH.indd 1 03.04.2017 15:08:15 PORTRAIT SWISSQUOTE MAY 2017

Bobst : mission accomplished Weighed down by the strong Swiss franc, the Vaud-based company has modernized beyond all expectations. Bobst is reaping the fruits of its labour and the packaging-machine manufacturer has become a leading force in the market.

BY MARIE MAURISSE

BY THE NUMBERS 53% 1.447 5,055 1.7 19.9% The percentage billion. Bobst’s The number of Swiss franc. The return on of packaging 2016 revenue in Bobst employees, The dividend capital employed (cardboard, plastic Swiss francs, up 1,800 of whom are paid out to Bobst (ROCE), nearly containers, etc.) 8.7% versus 2015. in Switzerland. shareholders. 4 points higher in the world than in 2015. manufactured by Bobst machines.

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t’s barely daybreak in Mex. In this small town in the Vaud countryside, the Bobst factory is a hum of activity Iin the middle of fields. The clock reads 6.30 am, but employees are already working hard. It’s Thursday 2 March 2017, and the world leader in packaging and labelling machine manufacturing must publish its annual report for 2016. In treasur- er Guiseppe Santoro’s office, the stress level is palpable but no one is worried. The company’s performance is once again miraculously good this year, despite the economic conditions. Revenue was up 8.7% versus 2015, and net profits rose 25.6% to 84.3 million Swiss francs.

There are more than 20,000 Bobst machines in use on the market, and their owners can pay for new services

But don’t let the numbers fool you ; the group has made a huge comeback. Founded in 1890 in Lausanne by Joseph Bobst, the family company

The state-of-the-art grew at a healthy rate and slowly assembly line at the Mex gained an excellent reputation for factory in the Gros-de-Vaud quality machinery and reliability. region of Switzerland, From the outset, the Swiss manu- where Bobst spent 50 million Swiss francs facturer always wanted to expand upgrading its equipment.

BOBST operations around the world and

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regularly opened subsidiaries across the globe, beginning in France. In 1978, Bobst went public. Its future followed the path of globalisation, and business was booming. The company always sold more machines that produce cardboard boxes, glass bottles, wood crates and plastic bags, particularly for the agri-food and textile sectors.

Difficulties arose as a result of the 2008 economic crisis and the sudden rise in the Swiss franc, which weighed on the company’s competitive position. In 2009, Bobst lost 161 million Swiss francs for the first time in its history. It was time for a transformation.

Paradoxically, that was also the moment shareholders decided to bring the family heir into the business. Jean-Pascal Bobst was named CEO in May 2009 and decided to roll up his sleeves and get to work, as the outlook was rather alarming. The first order of business was to reduce costs to free up cash and reduce debt. Bobst sold the Prilly location and all activity was moved to the new factory in Mex, inaugurated in 2013. Then, the number of stocks was reduced by half, which freed up ed in Bobst. He recently visited the “ Before, 70% of production took 250 million in cash. Since then, no company’s headquarters. “ Business place in Switzerland. Now it’s barely packaging or labelling machine is is less vertical than before. Only a 30%, ” says Seydoux. The group has manufactured in advance : produc- small amount of production is done factories in Europe, China, Brazil and tion begins only once the client has in Mex, ” he says. “ The production India. Last year, approximately half signed off on the purchase. chain is composed of three modules. (45.7%) of sales were in Europe, Each part of the machine is made and close to a third were on the independently and then assembled American continent (29.5%). Sales at the end. That means various parts increased in Asia (21.3%) and Africa No packaging or for different machines can be manu- (3.5%), two markets that are ave- labelling machine factured at the same time, reducing nues for growth for the company. is manufactured in the number of employees needed for advance : production this process. ” THE END OF THE FAMILY begins only once the DYNAMIC ? client has signed off In total, 50 million was spent on Cutting costs, however, meant that on the purchase modernising equipment at the Mex the company had to significantly facility. The new production chain reduce its workforce. More than will also be implemented at the 400 positions were cut since 2009, company’s German and French which was a huge shock in the canton This flexibility allows the company factories this year. of Vaud, where Bobst is an institution. to save money, while also remain- Employees went on strike for the ing extremely close to demand. To increase interest on the glob- first time in April 2015, protesting Robin Seydoux, analyst at Research al market, Bobst also decided to against declining working conditions, Partners in Zurich, is quite interest- delocalise most of its production. particularly the decrease in certain

20 PORTRAIT SWISSQUOTE MAY 2017

Bobst machinery used to manufacture were avoided. At the Mex location, new services. For Bobst, the digital packaging in Coburg, there are close to 200 apprentices after-sale service is the only way Germany. in training, and children of employ- to stand out from its competition. ” ees spend the day in the company Even though Bobst is the only com- nursery. But is the massive offshor- pany on the global market, it faces ing at odds with promoting Swiss increased competition in certain expertise ? The CEO, who cultivates key sectors. The German company discretion, declined an interview KBA is neck-and-neck with Bobst request from Swissquote Magazine. in the cardboard-packaging market, while another German company, Even though the financial results are Windmöller & Hölscher, is right on in, Bobst hasn’t yet completed its Bobst’s heels in the flexible-pack- transformation. To generate profits, aging market. the company now offers clients digital services via the platform With figures in the black and an mybobst.com. Clients can log on to excellent outlook, Bobst has every order spare parts and receive tech- reason to imagine a rosy future, nical expertise. The digital services even if 2017 will be “ unpredicta- are already available in Switzerland ble ”, according to a cautious state- and will be expanded to the interna- ment from the company. And more tional market in 2017, according to good news : Bobst will open its Seydoux. “ Each year, Bobst manu- third factory in China in early 2018. factures 1,300 new machines, but So it makes sense that Alain Gutt- that’s not enough to generate large mann is expected to be re-elected profits. However, there are more than as Chairman of the Board. Why 20,000 Bobst machines in use on the change a winning team ? market, and their owners can pay for BOBNN BOBST bonuses. Protesters missed the ANALYST’S OPINION “ family dynamic ” that used to be so present at Bobst. It disappeared in “ WITH A REASONABLE SHARE PRICE AND EXCELLENT RESULTS, favour of dividends for shareholders, as BOBST IS A SAFE INVESTMENT ” reported by the Vaud daily 24 heures. While Bobst is a legend in the pattern continues, EBIT It was a valid claim : from the very French-speaking Switzerland, could exceed 8%. ” And the beginning, the Bobst “ culture ” was it remains relatively unknown share price isn’t too high, since one in which the company paid in German-speaking Switzer- Bobst has long been ignored particularly close attention to the land. Remo Rosenau of Neue by analysts and investors. The Helvetische Bank is one of the price is around 90 Swiss francs well-being of its employees. Its code few analysts from the region and rising, as interest is clearly of conduct touts the importance of who follows Bobst closely. increasing. The good financial “ moral values ”. A passage reads : “ We’ve held Bobst shares in our results haven’t kept Bobst from “ Today’s society tends to forget portfolio for three years and investing. The company has that moral values exist and that have never removed them, ” says launched no fewer than 16 new they are universal. Our professional Rosenau. “ The management models over the past two years. has really done a great job and It’s also working on manu- behaviour must reflect those moral improved the company’s profit- facturing machines that are values and display our commitment ability, despite the crisis. Their completely digital. “ They’re in to them, in order to show that they progress is also a result of the the beta stage, ” says Rosenau, are alive and well and that they are new production chain at the Mex “ but if Bobst manages to sell vital to our company. ” These moral location, which is a modular them, they will be the first values are particularly important to system similar to what’s used company on the market to do Jean-Pascal Bobst, who is known for in the automotive industry. If so. It would be a revolution ! ” his religious faith. Several layoffs

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ANALYSIS SWISSQUOTE MAY 2017 ANALYSIS THE VIEWPOINT OF SPECIALISTS

INVESTOR INTERVIEW “ AI has the power to revolutionise almost all industries ”

Artificial intelligence is experiencing extraordinary growth and the internet giants Google and Facebook are at the forefront, according to Aditya Kaul, research director at Tractica. BY SOPHIE GAITZSCH

In 2016, a machine beat the world champion of the Who are the main players on the market ? Chinese game Go – a game renowned for its subtlety and Internet giants, such as Google, Facebook and complexity – for the first time. The victory by the AlphaGo Amazon, are at the forefront and are investing programme, developed by Google DeepMind, has put heavily in AI. They are followed by the automotive artificial intelligence (AI) back into the spotlight. These sector, with companies such as Google, Tesla, interfaces, which are able to solve complex problems, Toyota, Baidu and General Motors all competing are found increasingly in real-life situations. Driverless to produce the first driverless car. And upstream cars or voice-activated assistants are two of the most there are the processor manufacturers, such as striking examples. Tractica, a US research and consul- Nvidia, specialised in graphics processing units tancy firm specialising in technology, is closely following (GPU). The California-based company is taking off developments in AI. Swissquote Magazine asked Aditya and has clearly become the leading supplier for Kaul, research director at Tractica, to help us decipher the AI market (see company portrait on p. 26). this booming market. Are any of the major digital companies standing Can the artificial intelligence market be quantified ? out from the crowd ? We estimate very strong growth across the It’s hard to pick a clear winner, but Google is global market in the next decade. Estimated definitely at the head of the pack. The company to be worth $643.7 million in 2016, the market has made serious changes to its search engine : should increase to $38 billion by 2025, i.e. an last year, AI elements were used to reply to a increase of 50x the current figure. This growth third of all search queries. In addition, artificial should be mainly driven by the consumer intelligence has enabled Google to reduce energy goods, business services, advertising, finance, consumption at its data centres by 40%. Google media and defence sectors. We also think also acquired DeepMind in 2014, a company that that AI could be used by almost every industry works on developing a strong AI system (editor’s and that this technology will have similar note : a machine that can apply intelligence to effects on the market as the IT revolution of any problem). It was this program that beat the the 1980s and the mobile revolution of the Go world champion last year. Facebook is also 2000s did. We are currently seeing significant making significant progress. The social network development in the use of AI in the health has an enormous amount of data that it can use sector, for analysing medical imaging for to train its algorithms. It has created an algorithm example, and also in the legal, insurance and library for its engineers, in order to reduce the sales sectors. time required to develop new AI applications. With

ANALYSIS SWISSQUOTE MAY 2017

South Korean Lee Sedol (on screen), a Go world champion, lost to Google’s artificial intelligence (Seoul, 12 March 2016). NEWSCOM / LEE JAE-WON AFLO

1,000 specialists working on its voice-activated And what about start-ups ? assistant, Echo, Amazon finds itself in an inter- Our research has identified more than 2,000 start- esting position. And this is before even taking into ups which are working in the field of artificial account the use of robots in its warehouses intelligence. We estimate that between 500 and and drones for delivering its products. 600 of these are credible. The majority are active in highly specialised niche sectors. Let’s look at What about the other Silicon Valley giants ? Edited, for example. This London-based company Apple appears to be on the back foot. The com- works in the fashion sector and analyses data pany is not saying much about AI or the extent to help stores optimise their product ranges and of its AI research. We will have to wait for the prices, and even identify the best time to launch release of the next iPhone to get a better idea, a product. Another example is Captricity, a start- but the fact is that Siri, Apple’s voice-activat- up based in California that uses AI to digitise ed assistant, is not very impressive in com- companies’ paperwork. parison to similar products from Amazon or Google. Microsoft is constantly telling us how What advice would you give to anyone thinking dedicated it is to AI, but the company has yet of investing in AI ? to produce convincing results. IBM’s Watson When considering the different types of AI, we program, which helps businesses solve prob- should pay particular attention to deep learning, lems using AI, is not generating much income which has led to rapid progress in the field of at this stage. voice and image recognition. It is also important to understand that AI is only useful if you have data. In terms of research, where are the main Investors need to ask themselves if the company breakthroughs currently being made ? that they are thinking of investing in has data, or For roughly the last five years, we have seen the ability to obtain data. One final key point is a shift, with large companies now surpassing about algorithms. The be st-positioned companies university laboratories in research and devel- are those that are investing and innovating the opment. The academic world is fighting to keep most in this field. its researchers. The big question now revolves around knowing what kind of an impact this will have and whether the current model – where Aditya Kaul Research Director, Tractica the brightest and best minds are all working for Boulder, Colorado (US) Google and Facebook – is sustainable.

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Silicon Valley’s new headliner

Until 2016, Nvidia was an unfamiliar name to anyone outside the world of video games. But the California-based company now has Wall Street investors rubbing their hands together, just waiting to pounce on its promising position on the artificial intelligence market.

BY GENEVIÈVE RUIZ

he opening speech at the Since it was founded in 1993, Nvidia Consumer Electronics has specialised in designing graph- Show in Las Vegas, the ic processing units, or GPUs, for must-go-to event for computers, game consoles and more Tglobal high-techies, is typically given recently smartphones. What drove by superstars such as Bill Gates, or this company operating out of Santa by industry giants like Samsung or Clara, California, to explore artificial Intel. In January 2017, the slot was intelligence ? It came about through filled by a figure relatively unknown a simple turn of events, a lucky coin- to the masses, Jen-Hsun Huang, cidence. Everything changed in 2012 the 54-year old founder and CEO of when academic researchers realised Nvidia. “ What used to be the stuff of how the brand’s graphic processing science fiction will become reality in units could be used in developing the years to come, ” he stated, poised artificial intelligence, as they can and confident, dressed in his usual handle multiple tasks simultaneous- attire consisting of a leather jacket, ly. Nvidia’s technology, which up to polo shirt and black jeans. He used that point had mainly been used to The Nvidia Tegra K1 these words to refer to the recent enhance video games such as Call mobile processor, in a supersize boom in artificial intelligence (AI), an of Duty, became a valuable tool for depiction in a barley area where his company boasts ideal AI, and more specifically for accel- field near Salinas, positioning. And that’s precisely the erating deep learning. Deep learning California (2014). The company industry that is now attracting the in- is a subset of machine learning brought in the best terest of the high-tech companies in techniques that makes it possible crop circle experts attendance at the Consumer Electric for computers to learn on their own, to promote its new Show, even though some televisions without having to go through the technology in a uniquely creative and tablets are still around. cumbersome algorithms of program- way.

26 PORTRAIT SWISSQUOTE MAY 2017

THE NUMBERS x 3 How much Nvidia’s share rose in value in 2016. It is by far the best performance in 2016 in the S&P 500 on Wall Street. $6.9 billion The company’s revenue in 2016, up 38%.

55% Revenue growth in the fourth quarter of 2016 compared with the same period in 2015, representing more than $2 billion.

1993 Date the company was founded in Santa Clara, California. 10,299 NVIDIA Number of employees.

27 PORTRAIT SWISSQUOTE MAY 2017

mers. And this has led to amazing advances in areas such as face The new and very and voice recognition. compact Nintendo Switch is embedded with a Nvidia Tegra chip. Here, at a launch party for the console in Chicago in Tesla now fit all its February 2017. self-driving cars with Nvidia cards

The rest of the story is like a fast track to success. Operations that used to take several weeks or months can now be completed in a few hours or minutes. The company’s sales took off with requests from customers including Google, Facebook, IBM and Amazon. These tech giants need Nvidia’s technol-

ogy for managing their huge data NIXERKG centres, search engines and digital assistants (such as Amazon’s Alexa). One of the reasons Nvidia has dominated the market is that it doesn’t cater exclusively to this category of customers. It provides a turnkey development kit and a set of ANALYST’S OPINION deep learning algorithms. Partner- ships have developed in many areas. “ 2017 COULD BE ANOTHER RECORD YEAR ” Not only does the carmaker Tesla now fit all its self-driving cars with “ Nvidia’s fundamentals are Bosch, Amazon and Google. ” Nvidia cards, but universities and strong, ” says Sébastien Gatel, Alongside these growing sec- hospitals also use them to analyse a market analyst at Zonebourse. tors, Nvidia has maintained “ The company’s strategy is a strong performance in the medical imaging. coherent. A current consen- video game market, where sus agrees that its long-term it applies its prime area of WALL STREET NOW outlook is excellent. Everything expertise and which has been INVESTING IN AI points to go, for anyone who its core business since it was “ At no time in the history of our wants to invest. ” Nvidia’s founded. The Californian company have we been at the share tripled in value in 2016, brand remains the world’s centre of such large markets, ” and analysts predict a record leading supplier of graphics year in 2017. Forecasts for the processing units. In addition Jen-Hsun Huang told Forbes mag- company’s revenue growth to making its own hand-held azine at the end of 2016. More are optimistic, expected to game consoles, the Nvidia than 2,000 start-ups worldwide are rise from $6.9 billion in 2016 Shield, its devices also power currently active in AI. Whether spe- by $1 billion in 2017 and could the new Nintendo Switch. cialised in online retail, drones and exceed $8 billion in 2018. finance – they all use Nvidia graphics The only drawback with Nvidia The situation is not surpris- is in its meagre dividend cards. Some analysts believe that ing, says Sébastien Gatel. “ In payout strategy. Shareholders AI will revolutionise every industry. artificial intelligence, and were paid $0.40 per share That’s why Wall Street is now investing especially self-driving cars, in 2016 and are expected to in this technology and companies Nvidia has carved out a strong receive $0.09 more in 2017. with the best positioning on the mar- position for itself in relation “ Nvidia’s strategy remains ket. And that includes Nvidia, whose to its competitors such as cautious, ” Gatel says. “ Competi- Intel and AMD. The company tion is tough, and investment in recent share performance has been, has sealed partnerships with research and development will unsurprisingly, spectacular. big names, including Audi, be massive to stay at the top. ”

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Since the spring of 2016, the Cali- INTEL ON THE PROWL is fierce in the industry, but that’s fornia-based company has broken Unfortunately, this type of success nothing new, ” Hung says. “ But I think every record. Its share has tripled in story attracts the attention of Nvidia has a head start, at least in value, by far the best performance competitors. And they’re not ones to the artificial intelligence market, and in 2016 in the S&P 500 on Wall be trifled with. The main competitor, it will keep that strong position for Street. Its revenue rose 38% in 2016 Intel, is much bigger than Nvidia, with the year to come. After that, it’ll de- to $6.9 billion, even climbing 55% 2016 revenue of about $60 billion. pend on the quality of the products in the fourth quarter compared with Intel still dominates many markets, available from the competition. ” the same period in 2015. “ Nvidia’s but its higher-ups don’t want the ar- success is based on a healthy mix tificial intelligence pie to fall entirely Jen-Hsun Huang, now a billionaire, of businesses of the future, such as into the hands of Nvidia. The US tech can now simply sit on his success. artificial intelligence, and an older giant, headquartered near Nvidia in But that’s not the style of this but growing core market, with its Santa Clara, has recently bought Taiwan native who moved to the graphics chips and cards for video several start-ups active in AI, such as United States at the age of 10. He’s games, ” says Mark Hung, a top the software developer Nervana Sys- a fighter and still manages his com- analyst at Gartner in California. “ You tems. In March 2017, Intel bought the pany with the spirit of a start-upper, have to remember that the gaming Israeli autonomous driving specialist 24 years down the road. Huang sector still accounts for over 60% Mobileye for $15 billion. AMD, Nvidia’s recently said, “ I always think we’re of Nvidia’s revenue. Its technolo- main competitor in graphics cards de- 30 days from going out of business. gy also powers the new Nintendo signed for video games, managed to That’s never changed. It’s not a Switch console, which is enjoying fit its hardware into the latest Xbox fear of failure. It’s really a fear of comfortable retail orders. ” One and PlayStation 4. “ Competition feeling complacent. ” NVDA

Jen-Hsun Huang, who has long served as the company’s CEO, brandishing Nvidia’s GeForce Titan, the top-of-the- line graphics card for PC (GPU Technology

Conference, 2014). DR

29 LALA LÉGENDELÉGENDE AA GRANDIGRANDI

LA NAVITIMER 46 mm

CA108824_Navitimer 46_400x260_Swissquote_FR-Boutique GE.indd 1 21/03/2017 16:11 CA108824_Navitimer 46_400x260_Swissquote_FR-Boutique GE.indd 2 21/03/2017 16:11 LALA LÉGENDELÉGENDE AA GRANDIGRANDI

LA NAVITIMER 46 mm

CA108824_Navitimer 46_400x260_Swissquote_FR-Boutique GE.indd 1 21/03/2017 16:11 CA108824_Navitimer 46_400x260_Swissquote_FR-Boutique GE.indd 2 21/03/2017 16:11 SPORTDOSSIER FEVER SWISSQUOTESWISSQUOTE MARS MAY 20172016

Dossier réalisé parFeature Clément by Bürge, Ludovic ChappexChappex, RinnyBenjamin Gremaud, Keller, ArmelleJean-Christophe Vincent, Piot, Julie Zaugg Julie Zaugg ISTOCK

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DOSSIER

SPORT FEVER HOW COMPANIES ARE CASHING IN

The excitement buzzing around champions and major sport events is rich with opportunities for companies. Merchandising, broadcasting rights, online betting, clothing lines, fitness – the sport economy is all around us. BY LUDOVIC CHAPPEX

34. Infographic : growing sectors

36. The ultra-competitive he sport industry is boom- world of TV rights ing, and experts believe it will continue to thrive for 42. eSports in Tyears to come. Given the sluggish the big league growth weighing on many sectors, 44. Sports betting : this global, broad-spectrum market the game is on – ranging from sport entertainment to everyday physical exercise and 48. Football : urban streetwear – deserves atten- publicly traded clubs tion from investors. face tough equations On the front of major sport com- 52. Triumph petitions, the media revolution of the tracksuit has begun. The invasion of smartphones and wider accessibility of 56. The fitness market flexes high-speed internet are changing its muscles consumer habits. This new normal is

33 SWISSQUOTE MAY 2017

starting to attract high-tech heavyweights like Netflix, Facebook and Amazon, who want to get into the game. For all the upheaval, major GROWING sport television networks remain, for now, kings of their domain. But it takes massive investment to buy ever more costly exclusive broad- INDUSTRIES casting rights. Not everyone will come out of this battle unscathed. Even the US giant ESPN, owned by Disney, is beginning to feel the tremor in the firm ground under- neath it.

It may come as no surprise that MERCHANDISING Asia – especially China – is driving FANS ARE SPENDING MONEY industry growth. The recent rise in popularity of football in the country is reflected in the purchase of Annual growth prestigious European clubs, includ- + 6.4 % ing the legendary AC Milan, which was snatched up for €740 million, and of television rights to major championships such as the English Premier League. These competitions are fuelling another flourishing business : online betting. Users can $27.6 billion $48.2 billion place what are called “ proposition 2015 2024 bets ” directly on aspects of the game that are not related to the Global sports-related products final score. And it has revolutionised the practice. Several companies are shrewdly putting their money in this FITNESS offshoot business. LET’S GO TO THE GYM ! But the sport economy goes beyond headline entertainment. It also draws on the widespread popularity of all forms of physical exercise. Fitness clubs and equipment manufacturers are enjoying good times, as are the Annual growth brands that sell wearable technology + 3.5 % to monitor performance. More than one in three sport enthusiasts is reported to use this type of device. Dress codes have also been swept up in the momentum, and not just in the shoe department. People everywhere are wearing Nike, Under Armour and $10 billion $13.2 billion Puma sportswear, including at cafés 2014 2022 and at the office. The trend is most noticeable in China. These days, Global fitness machine market the sport industry certainly has the advantage on its side.

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WEARABLES SPORTSWEAR THE MONITORING CRAZE DRESSED FROM HEAD TO TOE 2016 Annual growth 2020 Annual growth 25% + + 4.3 %

$3.8 billion $6 billion $6.3 billion $11.4 billion Sport trackers Smartwatches

Global revenue

E-SPORT

THE MARKET IS TAKING OFF AN EVER-INCREASING AUDIENCE $149.6 billion $184.6 billion Annual growth Annual growth 2015 2020 40.7% 11.2% + + Global sportswear market

$194 million 90 million 2014 2014

Annual growth + 2 % $463 million 125 million 2016 2016

$1,072 million 165 million $80 billion $88.3 billion 2019 2019 2015 2020

Global cumulative value of media rights, Number of people who watch e-sports Global athletic merchandising and tickets, online publicity, at least once a month in the world footwear market brand partnerships, etc.

SPORTS BETTING Physical bets A COLOSSAL INDUSTRY 70 % Annual growth Legal bets Illegal bets Online bets 4.3 % + 20 % 80 % 30 %

$205.6 billion $253.3 billion 2015 2020 Global sports betting market

Sources : Allied Market Research, CCS, Grand View Research, International Centre for Sports Security, Nielsen, Research and Markets, Technavio, Transparency Market Research. 35 SPORT FEVER SWISSQUOTE MAY 2017

THE ULTRA- COMPETITIVE WORLD OF TV RIGHTS Sports broadcasting is becoming more and more expensive for TV networks, old and new alike. But is a bubble starting to form ?

BY JEAN-CHRISTOPHE PIOT

Football lovers gather en masse to watch the France/Albania game during Euro 2016 (15 June 2016). The cost of renegotiating he global sports broadcasting TV rights for major games is driving market just keeps getting broadcasting charges bigger. And growth has picked through the roof. up in recent months : it has Tincreased by 18% from 2014 to 2016, and is now worth €38 billion, according to the company TV Sports Markets. China’s enthusiasm for UK football is just one of the country’s sport-related Football dominates Such growth is due in large part investments. Wanda Group, a private the global market : to the renegotiation of rights for the conglomerate, purchased sports mar- it alone makes up 85% major European football leagues, keting company Infront Sports & Media especially the UK’s Premier League. for €1 billion in 2015. The company of sport television Last year, the most popular football has a partnership with FIFA and holds broadcasting rights league in the world signed a three-year broadcasting rights for the football $650-million contract with Chinese World Cup and the Olympics. The same platform PPTV, beginning with the year, Wanda Group also acquired a 20% But football enthusiasm in China and 2019–2020 season. It’s the big- share of Atletico Madrid, a finalist in Asia in general is just a (big) drop in gest contract ever signed between the most recent Champions League. the ocean. True, football dominates the Premier League and a foreign Chinese companies have also bought the global market – it alone makes broadcaster. That’s nothing, though, other major clubs, such as Aston Villa up 85% of sports television broad- compared with the $7.3 billion and AC Milan, which was sold by Silvio casting rights – but American sports spent by UK networks between 2016 Berlusconi for €740 million to the are also becoming incredibly popular. and 2019. consortium Sino-Europe Sports. David Dellea, strategy and opera-

36 SPORT FEVER SWISSQUOTE MAY 2017

COMPANIES TO WATCH

THE WALT DISNEY COMPANY A worrying colossus Twelve million subscribers lost in six years : a decline turned into a haemorrhage for ESPN, the jewel of the Media Networks division of Disney. This is due to increased competition, high subscription costs and the emergence of pirate streaming viewing. Is this cause for concern ? “ Yes, in the sense that ESPN has made up 26% to 29% of Disney’s revenue over the last 10 years, ” says Christopher Ma, director of investment fund Ro- land George at Stetson University. While ESPN’s revenue has fallen in Q1 (net profit down 14%, to $2.5 billion), Disney maintains a strong base with other activities (film, theme parks, etc.). Just not with sport. HEADQUARTERS : BURBANK (US) WORKFORCE : 195,000 REVENUE (2016) : $55.6 BN DIS

SUNING China’s enthusiasm Owned by electronics distributing giant Suning, the platform PPTV will broadcast Premier League matches for three years starting in 2019. The agreement is in addition AFP / BERTRAND GUAY / AFP AFP / BERTRAND GUAY to another sport contract, in place since 2015, between PPTV and the Spanish Liga. This is only one aspect of a long drawn-out strat- tions director at PwC Consulting in certain countries, such as skiing egy for Suning. In June 2016, it in Zurich (see interview, p. 41) says, in Austria, but it’s still an exception had already acquired 70% of Inter “ In North America, the National to the rule, ” says Dellea. Milan for €270 million. In time, Football League (NFL), Major League the conglomerate aims to build Baseball (MLB), National Basket- AUCTIONS a global sport empire, combining ball Association (NBA) and National The overall explosion in the cost club ownership, transfer and rights Hockey League (NHL) enjoy far more of TV rights is due notably to the management and online sport media coverage than other popular increasingly effective strategy broadcasts. Chinese President Xi sports. ” These four leagues account of right-holders. With the help of Jinping approves, as he is a huge for 90% of broadcasting rights in small armies of lawyers, leagues football fan. HEADQUARTERS : NIANJING (CN) North America. That’s much more and federations have set up broad- WORKFORCE : 24,900 than other popular sports, such as casting-rights auctions that are REVENUE (2016) : $21.6 BN NASCAR auto racing, and up-and- becoming increasingly convoluted. SZSE coming sports like soccer, which is For example, events are usually slowly becoming more popular on the split up into packages. “ The idea is East Coast. Elsewhere in the world, to divide up each event in order to “ other sports could be very popular raise the price. A championship

37 SPORT FEVER SWISSQUOTE MAY 2017

will be spread out over three days instead of just one, and broadcast during distinct time slots, from 2 pm to 9 pm, for example, ” says Jean-Pascal Gayant, economist at the Université du Maine and author of Économie du sport (2016). In- stead of having to choose between one or two sporting events, viewers can spend the entire weekend on the couch watching television.

The second tactic is to sell both national and international events extremely far in advance. In France, broadcasting rights to Ligue 1 matches for the 2016–2020 season were sold in 2014. Many countries have already granted the rights for the 2022 and 2024 Olympics.

Visitors to Madrid’s From the most highly anticipated Games Week try out events to the most low-key match- the famous FIFA game on a giant es, all primary sports broadcasts are screen (October becoming increasingly expensive. 2014). And for good reason, according to

NEWSCOM / TRISTAN REYNAUD / SIPA NEWSCOM / TRISTAN Gayant : “ Professional sport is one of the rare types of televised con- VIDEO GAMES : A LICENCE WAR tent that broadcasters get excited about, because watching sport is Do you prefer real or virtual than 37 championships and a highly emotional experience that sports ? Video game publishers use the name and likeness were among the first to bring of 16,000 players. And that can’t be easily reproduced. ” Net- virtual sports to life. It’s no doesn’t even include the works that hold the broadcasting accident that Pong and Tennis 14 national women’s teams. rights to big events therefore have for Two are two of the first vid- Making their debut in the a real competitive advantage. eo games in history. A few dec- 2015 edition, women’s teams ades later, Electronic Arts and will very likely attract a new its brand EA Sports dominate audience. Conversely, PES 2017 TV BEATS THE INTERNET the sport video game market, has only a few championships In terms of long-standing broad- with 320 million players all (including France’s Ligue 1 casters, TV networks still dominate over the world (see inset, p. 41) and Ligue 2) under full official the market : 78% of viewers still playing American football, licence and has to make do watch matches and other sporting basketball, golf, hockey and, with invented names for clubs events on their TV, according to of course, football. FIFA 17, and players. specialized consulting firm Nielsen the latest edition of the series, was the highest selling video Unsurprisingly, the divide is Sports. But in addition to traditional game in 2016 and is light-years digital, as the digital world private and public broadcasters, ahead of its Japanese com- determines the sales and new competitors such as telecoms petitor Pro Evolution Soccer reputation of the two gam- giants are entering the market. They (Konami). ing companies. FIFA 17 has are attracted by the prospect of 4.54 million followers on rounding out their web and mobile The licence war is fiercely Twitter, far beyond PES 2017’s offers with sport content for new negotiated with each league. 259,000 followers. Long re- Konami holds the rights to garded by virtual football fans subscribers. For some networks, the the prestigious Champions as subpar to its competitors, investment is expensive : France’s League, but EA paid a hefty FIFA has ended up virtually SFR Group, a subsidiary of Altice sum to various other leagues destroying its competition…on (see inset, p. 41) pays €100 million for the rights to show more the balance sheet, at least. a year for the rights to broadcast Pre- mier League matches on its channels.

38 SPORT FEVER SWISSQUOTE MAY 2017

Other rivals of traditional broad- negotiated with NBC for the rights casters are new cable or internet to use images of the Rio Olympic LIBERTY MEDIA television companies, such as the Games. In July, Amazon won the web The Olympics and Formula 1 Qatari BeIN Media Group. It already and mobile rights for the German Liberty Media has invested significantly in sport over the Bundesliga, right after Twitter spent has a presence on five continents last few years, both directly and and in 34 countries with 60 channels. $10 million to broadcast 10 American through its subsidiary Discovery, Another is the Russian network football matches from the very popu- which now owns Eurosport. Match TV, owned by giant Gazprom. lar Thursday Night Football series. On top of that, Liberty Media Many networks seek to obtain market And as this magazine was going to has also acquired European share by investing in premium con- press, it was Amazon’s turn to win broadcast rights for the 2022 tent and offering very low subscrip- the bidding war for the NFL 2017 and 2024 Olympic Games. The tion rates – just €13 per month for season, securing the rights to stream group, owned by billionaire BeIN Sports, the French subsidiary 10 games for an estimated total of John Malone, made big moves of BeIN Media Group, which already $50 million. at the end of 2016 with its has three million subscribers. This purchase of Formula 1 for inflicts serious damage on traditional So many promising trial balloons for $8 billion. Talk about “ capi- networks such as Canal+, which is digital heavyweights, but none has talising on new opportunities in advertising, digital rights far more expensive (€49.90 for the had a significant impact on their turn- and social media, ” says Jason sports package). over. “ For the time being, the money Bazinet, analyst at Citigroup. that digital companies have spent on The transaction boosted broadcasting rights pales in compari- Liberty Media stock by 50% in son to what large networks pay. Big Last summer, Snapchat three months. Bazinet even events will probably not be available revised his estimates upwards, negotiated with NBC for exclusively on the web for several increasing the target price from the rights to use images years, ” says Dellea. But the share of $22 to $32. of the Rio Olympic Games games acquired by these new plat- HEADQUARTERS : ENGLEWOOD (US) forms could very well increase, which WORKFORCE : 3,546 would make competition even fiercer REVENUE (2016) : $5.3 BN LSXMA BeIN Sports is a private company : among broadcasters. its only limits are determined by its owner. “ Nasser Ghanim Al-Khelaïfi MONEY-WASTING SKY PLC has close ties to the Qatari govern- INVESTMENTS The Murdoch unknown ment and sees sports as a tool of Will the sports broadcasting bubble Sky Sports is the UK’s primary soft power, ” says Gayant. “ For the burst ? Maybe, since many broad- sport network, with 25 million time being, he has accepted to off- casters are losing money. Twitter subscribers and 14 channels. set the group’s losses, estimated was reportedly unable to turn a profit It’s been in a tough spot since at €250 million per year. ” This only from its contract with the NFL, after December, however, when Rupert feeds the extreme overbidding that spending $1 million per match for Murdoch announced his desire is also rampant in the UK between games that CBS and NBC bought for to take complete control of the Sky Sports and BT Sport. around $22 million. More worrying is network via 21st Century Fox for $14.6 billion. The acquisition will the fact that this phenomenon also still encounter some unknowns, DIGITAL GIANTS WAITING affects the silver screen. France such as a share price of £10.75, TO STRIKE hosted the most recent European which many believe is underval- With the spread of high-speed football championship, but French ued. “ The correct price is closer internet, other influential companies channel M6 was unable to generate to £13.5, ” says Thomas Single- (notably digital giants) have come to enough revenue from adverts to hurst of Citigroup. Sky Sports disrupt the market a bit more. Video is make up the €30 million it spent on may also have to go before Of- at the heart of the battle between the broadcasting 11 of the 51 match- com, the UK’s independent regu- digital players who forever changed es. This is worrying to Gayant. “ It’s lator and competition authority. the dimensions of our screens. Their an outright bidding war, ” he says. It’s a sword of Damocles, which audience – 1.5 billion Facebook users, “ Broadcasters spend too much on explains why several analysts 1 billion YouTube subscribers, 320 events they buy too early. They aren’t recommend against purchasing million Twitter users – is such that able to judge what the popularity of shares right now. HEADQUARTERS : LONDON (UK) right-holders have begun negotiating, these events will be like when they WORKFORCE : 30,000 sometimes exclusively, with these actually occur. In France, Canal+ and REVENUE (2016) : £12 BN new players. Last summer, Snapchat BeIN Sports spent €726.5 million SKY

39 SPORT FEVER SWISSQUOTE MAY 2017

to broadcast Ligue 1 matches be- subscribers, it could suffer losses The democratisation of high-speed tween 2016 and 2020. Given what they in the next five years. internet guarantees a quality im- purchased, I’m not sure it’s worth the age, so some viewers are turning to investment. ” The same phenomenon PIRATE STREAMING pirate sites that are free and easy is occurring in the US. ESPN (see inset, Here’s the paradox : right-holders are to access. Just as concerning is the p. 37) is a victim of its own power : licking their chops and broadcast- fact that for younger generations, the network is losing subscribers to ers are on the decline, but demand free content has become a new offers that are less complete, but also from consumers is increasing. norm. The music and TV industries less expensive, such as PS Vue and Competition is only just beginning can bear witness to this large-scale Sling TV. This is occurring right when between traditional players and shift. True, sport is mostly viewed live ESPN is due to renegotiate the rights newcomers, which contributes to and is one of the only content left for all major sport events. In 2017, the broadcasting rights becoming even that persuades viewers to subscribe. cable channel is expected to spend more fragmented. Right-holders are still making far too $7.3 billion to continue broadcasting its much money with traditional broad- current programmes, close to $2 billion This problem could hide another, casters to propose the exclusive of which is for the NFL and $1.5 billion more generational problem. Modes rights to social media networks. But for the NBA. At the rate ESPN is losing of consumption have changed. how much longer will that last ?

A cameraman at Rogers Arena, home of the Vancouver Canucks. NHL games are some of the most popular sporting events in the United States and are a veritable Canadian

NEWSCOM / BOB FRID/ICON SMI 109 institution.

40 SPORT FEVER SWISSQUOTE MAY 2017

INTERVIEW ALTICE Mr Drahi’s risky bets Investing in media content to attract new telephony clients : that’s the strategy businessman “ SPORT IS Patrick Drahi had in mind when he acquired broadcasting rights for the 2016–2019 seasons of THE ONLY CONTENT the Premier League. Snatched from Canal+ for €120 million, the rights will show content THAT WE STILL on the thematic channels of Altice subsidiary SFR Group. It remains to be seen, however, WATCH LIVE ” whether this investment will be profitable. To make money, “ SFR must stop its subscribers from leaving, invest heavily in infra- Director of strategy and operations structure and reduce costs, ” at PwC Consulting in Zurich, David says Simon Weeden of Citi Re- Dellea is an expert in the sport search. Economist Jean-Pascal industry. He paints a picture of a market affected by big changes. Gayant is perplexed by this mad rush. Gayant believes that “ the economic logic of Altice could end up being a fiasco in the Around the world, the sport new media such as digital actors, long term. ” market is booming. Why ? who are also interested in sport HEADQUARTERS : WOERDEN (NL) It varies depending on the conti- due to the multiplying effect. While WORKFORCE : 38,000 REVENUE (2016) : €23.5 BN nent, but the industry is growing viewers watch a match, they also ATC at a rate that is much higher than interact and discuss on their social global growth. In Europe, it’s due media platforms and networks. to renegotiating football rights, ELECTRONIC ARTS particularly for the UK’s Premier Aren’t pirate streaming and the It’s in the game ! League. In North America, the cost access to free content a threat “ It’s in the game ! ” is the slogan of broadcasting rights is expected to this model ? that begins each sport match of US video game giant Elec- to increase at an annual rate of The threat is always there, but tronic Arts. It’s also symbolic of 5.5% for a market that will go from sport content plays by different the growing power that the EA $16.3 billion in 2015 to $21.3 billion rules than that of music or films, Sports division has in the com- in 2020. Asia is also investing heavily for example. For the most part, we pany’s profits. “ Its three main in sport, purchasing broadcasting don’t consume music or film live. products (FIFA Football, NBA rights to big leagues like the NBA The value of a match or a sporting Live and Madden NFL) now bring and European football. It’s also event is closely linked to the fact in $800 million per year, or more developing its own competitions that it is live, to the point where than a sixth of the company’s and acquiring clubs. a competition loses almost all of turnover, ” said Brian Nowak, its economic value the moment it analyst at Morgan Stanley. Why have broadcasting rights ends. Paying consumers continue to The Californian company is a skyrocketed ? increase, especially since the major recent example of a successful Broadcasting channels have been players are doing all they can to digitalisation strategy, as game springing up everywhere thanks to fight pirate streaming sites. Howev- downloads have increased 82%. “ Compared with physical high-speed internet. Specific rights er, a new trend is emerging, which CDs, the download purchasing can be sold for various devices, no could change the way we consume method can improve margins longer just for television. Addi- content. Many sport fans now only by 30%, ” says Nowak. Analysts tionally, regardless of the device, watch clips of a match without recommend buying stock in sport is the only content that we watching the entire thing. This way the company. still watch almost exclusively live. of watching sport is a new way to HEADQUARTERS : REDWOOD CITY (US) All networks hope to attract this consume content, and we will have WORKFORCE : 8,500 dedicated audience, including via to keep an eye on it over time. REVENUE (2015–2016) : $4.4 BN EA

41 SPORT FEVER SWISSQUOTE MAY 2017 ESPORTS IN THE BIG LEAGUE Video game competitions are drawing a fast-growing number of viewers, with big-name sponsors and traditional television networks falling in line.

BY LUDOVIC CHAPPEX

Full house at the Key Arena in Seattle for the international Championship of the game DOTA 2, on 8 August 2015. The prize money of this competition now exceeds $20 million. REUTERS / JASON REDMOND

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COMPANIES TO WATCH

ACTIVISION BLIZZARD Success of “ Overwatch ” Known for its legendary games such as Starcraft and Call of Duty, the US video game designer is raising its profile in eSports ideo game tournaments would although still modest compared with Overwatch. This multiplayer FPS game released in 2016 now never be considered actual with mainstream sports such as has more than 25 million players V sporting events. Or would football, are rising fast. Newzoo report- worldwide. Activision Blizzard they ? Going by the increasingly size- ed eSports revenues of $463 million posted record revenues last year, able audiences at eSports competi- for 2016, up from $194 million two which rose by more than 40%. tions, greater interest from sponsors years earlier. That annual growth Analysts recommend buying and skyrocketing prize money, they of over 40% is not set to stop, with its shares. sure look like the real deal. From global revenue expected to reach HEADQUARTERS : SANTA MONICA (US) there, whether the competitive use of $1.1 billion in 2019. NUMBER OF EMPLOYEES : 9,600 a keyboard and mouse involves phys- REVENUE (2016) : $6.6 BN ical exercise, you be the judge. As “ The entire eSports industry ATVI – perhaps – a comparison, air pistol generated prize money of about shooting became part of the Olympic $80 million in 2016, ” says David TENCENT HOLDINGS Games in 1988. Dellea, strategy and operations A weapon called director at PwC Switzerland. “ That “ League of Legends ” The phenomenon of eSports – a gives an idea about how big the Tencent Holdings owns Riot misleading term that refers to any business has become. Comparative- Games, developer of League video game played competitively, not ly, total bonuses awarded in cycling of Legends, by far the most just multiplayer games – is exploding. are no higher than €12 million. ” watched multiplayer game in eSports. At the final of the last The Dutch market intelligence firm League of Legends World Cham- Newzoo estimates that 125 million That plush environment is luring pionship, the audience reached people watched an eSports tourna- large video game designers looking a peak of 14.7 million viewers. ment at least once a month in 2016. to take their share of the market. The company’s revenues jumped In 2016, Activision Blizzard (see 48% in 2016. Analysts strongly Major competitions regularly sell opposite) paid $46 million for Major recommend buying its shares. out the stadiums and concert halls League Gaming, an organisation HEADQUARTERS : SHENZHEN (CN) where they are held, even in Europe. that hosts most of the contests NUMBER OF EMPLOYEES : 38,775 The League of Legends World in North America. Electronic Arts, REVENUE (2016) : $21.9 BN TCEHY Championship final in October 2015 developer of the FIFA video game brought in 17,000 viewers in a siz- series (see also p. 38 and 41), even zling atmosphere at the Mercedes- launched its own events through its TWITCH (AMAZON) Benz Arena in Berlin, with more EA Competitive Gaming Division to Web TV for gamers than 36 million people around the host competitions for its most pop- Bought by Amazon for globe watching online. The record ular games, including FIFA, Madden $970 million in 2014, Twitch was beaten in 2016, as 43 million NFL and Battlefield. is the leading online video game viewers were glued to their screen streaming site. Its audience now for the final in Los Angeles. The Although online streaming remains exceeds 100 million visitors per winning team from Korea took home the leading channel for watching month. That’s still not enough a cheque for $2.7 million. eSports (see inset opposite on to mark the earnings of a giant Twitch), a few major TV networks like Amazon, but the company’s growth is impressive. Illustrious sponsors did not miss are conducting trial runs. For ex- HEADQUARTERS : SEATTLE (US) the opportunity. Unsurprisingly, ample, the BBC experimented a live NUMBER OF EMPLOYEES : 341,400 leaders in gaming such as Microsoft broadcast of a season of League of REVENUE (2016) : $135.9 BN and Logitech were in attendance, Legends in 2015. In early January, AMZN along with other prominent but more ESPN.com set up a website dedi- general retail brands, including cated to covering eSports compe- Coca-Cola, Red Bull and Samsung. titions. Next round, eSports at the All that means that sector revenues, Olympic Games ?

43 SPORT FEVER SWISSQUOTE MAY 2017 BOBOSTUDIO

SPORTS BETTING : THE GAME IS ON Profoundly changed by the advent of the internet, the sports-betting industry is now worth billions. But it suffers from competition on the black market, and major players in the industry are under pressure.

BY BENJAMIN KELLER

44 SPORT FEVER SWISSQUOTE MAY 2017

COMPANIES TO WATCH

PLAYTECH Enabling online betting This is one of the companies that’s riding online betting’s wave of success. Playtech provides software for online gambling sites, including sports betting. The company made record profits ports betting is an exciting services to betters all over the world, in 2016, as their net earnings activity. Within the betting albeit with ever-decreasing margins increased 42%. Their sports- betting activity rose 82%. industry, this segment and in defiance of national laws. Analysts recommend buying has the strongest growth : Playtech stock. S+4.3% year over year from 2015 to Online betting is very difficult to HEADQUARTERS : DOUGLAS (ISLE OF MAN) 2020, according to the research firm control, whether it occurs in places WORKFORCE : 5,000 Technavio. Operators’ annual profits where betting is completely illegal, REVENUE (2016) : €708.6 M exceed $50 billion. like the United States, or in plac- PTEC es where betting is legal but not regulated, like the European Union. The legal As a result, 80% of betting around LADBROKES CORAL GROUP the world takes place under illegal The old-timer hangs on industry has circumstances, according to the In- UK bookmakers Ladbrokes and become sharply ternational Centre for Sport Security Gala Coral, founded in 1886 and (ICSS), an independent non-profit 1926 respectively, have merged concentrated based in Doha, Qatar. to remain competitive in the new environment. The new company, Legal operators must follow the which ousted William Hill to take Horse races are still a favourite rules that are in force in the Eu- the top spot in the UK’s physical among betters. This type of betting ropean Union. Online-only betting betting market, also controls 9% alone makes up 55% of bets in the operators can establish themselves of online betting in the country. world and is particularly popular in in lenient countries, such as Gibral- Analysts believe the group will outperform the market. Japan, Hong Kong and the United tar, to take advantage of the mostly HEADQUARTERS : LONDON (UK) States – where sports betting is le- tax-related advantages. But actors WORKFORCE : 29,000 gal only in Nevada and at racecours- on the physical market must comply REVENUE (2015) : £2.1 BN es. Soccer isn’t far behind, posting with the regulations in the countries LCL growth rates close to 60% in certain where they have set up shop. countries, according to H2 Gambling Capital, an expert in market studies. CONCENTRATION As a result of these changes, the PADDY POWER BETFAIR DISRUPTION legal industry has become sharply The British leader Growth in the sector currently comes concentrated. In the UK, the most Paddy Power Betfair is the top from online betting. More than 20% regulated market in the world, three company in the UK online betting of bets are already placed on mobile bookies now control 87% of the market, with a 27% market share. devices, and this percentage is physical market, which has taken a The company was founded as a expected to reach 45% by 2018, ac- sharp dive in the last few years as result of a 2016 merger between cording to H2 Gambling Capital. The in- it is overtaken by the web. The three Irish bookmaker Paddy Power ternet shook up the established order. are Ladbrokes Coral (41%), William and UK firm Betfair. The company posts strong growth, and analysts Traditional players, who focused on Hill (27%) and Betfred (19%). These believe it will outperform the physical networks in state-approved retail dinosaurs have all entered the market. betting offices, are up against new online segment, which has become HEADQUARTERS : DUBLIN (IE) competition that doesn’t play by the increasingly fragmented through ac- WORKFORCE : 7,200 same rules. Thousands of operators quisitions and partnerships. William REVENUE (2016) : £1.5 BN have established themselves in gam- Hill, for example, purchased online PPB ing paradises such as the Philippine operator Sportingbet and entered province of Cagayan, offering their into a joint venture with software

45 SPORT FEVER SWISSQUOTE MAY 2017

A betting office of the historic Ladbrokes Coral Group in London. The wave of online betting challenges the English giant’s business model. REUTERS / LUKE MACGREGOR

provider Playtech, before eventually LEGALISATION site : opaque, ignored and far from buying out the latter. William Hill, For a company like William Hill, well-regulated. ” Others, however, founded in 1934, now generates which is now well-equipped against believe that widespread legalisa- more than a third of its revenue from regulations, the ideal situation tion is not the answer, according to digital betting and controls 15% of would be if more countries legal- Christian Kalb, an expert in sports the online betting market in the UK. ised sports betting. That way, legal betting and sport-governance issues betting would spread and the black at the French Institute for Interna- But William Hill’s transformation is market would shrink. The ICSS is tional and Strategic Affairs (IRIS) in not yet complete. The group wants in favour of large-scale legalisa- Paris (see interview, p. 47). to distance itself from the UK market tion with controls, as it is aware and its ever-increasing regulations. that illicit betting is closely linked The case of William Hill shows “ Our strategy is to expand our diver- to organised crime and corrup- the difficulties that long-standing sification by increasing our revenue tion (approximately $140 billion is bookmakers face. At the same time, from online betting outside the UK, ” laundered each year through illegal new actors are finding success stated William Hill in its latest annual betting, according to the ICSS). in the current environment. These report. The UK operator, which had a include software providers such catastrophic 2016 (see inset, p. 47), “ A transparent, strictly monitored as Playtech, founded in 1999 and said that while there are opportuni- and well-regulated betting industry based in the Isle of Man, as well ties to be had in the current environ- poses little threat to the integrity as pure players such as Kindred ment, there are still many roadblocks : of sport, ” said Chris Eaton, director of (formerly Unibet), founded in 1997 “ Regulations will only become more the ICSS, in a recent opinion column and based in Malta. The game is on. strict. Costs are rising, owing to taxes on the organisation’s website. “ But Now’s the time to place your bets and compliance-related expenses. ” the current system is the oppo- on who will win.

46 SPORT FEVER SWISSQUOTE MAY 2017

INTERVIEW WILLIAM HILL Going downhill Without a CEO since July 2016 – when James Henderson was replaced by interim head Philip Bowcock – the second-larg- “ THERE ARE TWO CAMPS : est player in the UK physical market had a terrible 2016. The THE EUROPEAN UNION online division is struggling and tighter regulations in the UK are weighing on profits. Analysts AND THE REST OF THE recommend holding this stock. HEADQUARTERS : LONDON (UK) WORKFORCE : 16,000 WORLD ” REVENUE (2016) : £1.6 BN WMH

Faced with strong competition and decreasing margins, sports-betting companies are trying KINDRED to influence countries to open up the market. The Swede in full expansion Christian Kalb, an expert from the French Institute Kindred, a European leader for International and Strategic Affairs (IRIS) in online betting, had re- in Paris, explains the situation. cord-breaking results in 2016 : revenue increased 53% and profits were up 50%. More than two-thirds of the group’s Swiss Parliament just voted in The Trump administration revenue is generated via favour of blocking online gam- has entertained the possibility mobile. Last year, sports-bet- bling based in foreign countries, of opening up the betting ting activity was up 45%, to including sports betting. Users market in the United States, £245.5 million. Analysts believe will be notified with a warning where it is illegal except the company will outperform message when they access in Nevada. the market. an illegal site. What’s your take It’s hard to say at the moment. Out- HEADQUARTERS : VALETTA (MALTA) WORKFORCE : 1,162 on this ? side the EU, I don’t see any trends REVENUE (2016) : £544.1 M This is a very important development. of the market opening up for the KINDSDB It will allow Switzerland to relocalise time being. a number of players who currently bet on uncontrolled foreign sites. What impact do regulations Gambling has serious consequences. have on official operators ? GVC HOLDINGS There is a risk of fraud, money laun- Operators don’t like regulations, The ambitious newcomer dering, corruption and addiction. It’s because they must do business in In just over 10 years, GVC Hold- a good thing that the market is regu- a market that is very difficult and ings has come up as one of the lated and has licensed operators. extremely competitive, with decreas- major actors on the gambling ing margins. Their goal is to influence and sports-betting market, What is the current trend regulators and governments so that offering both B2B and B2C in terms of regulations ? they loosen restrictions. services. The group acquired UK operator Sportingbet (with There are two camps : the European William Hill) in 2013 and Aus- Union, which is not very regulated, Is it really possible for states trian company Bwin in 2016, and the rest of the world, which is to control online betting ? posting solid performance ever highly regulated. Not a single coun- Someone who wants to cheat will since. Analysts recommend try outside the EU has a licensing always find a way. But this is not buying this stock. system, besides Mexico. There are specific to gambling : for example, HEADQUARTERS : DOUGLAS (ISLE OF MAN) also small gaming paradises, such as one cannot ensure that everyone WORKFORCE : 576 the Philippine province of Cagayan, respects speed limits. By adopt- REVENUE (2015) : €247.7 M and advantageous locations such as ing a minimum number of meas- GVC Curaçao and Belize in Central America, ures, including those foreseen in the Kahnawake reserve in Quebec, Switzerland, 90% of the problems Gibraltar, Malta, and Jersey in Europe. are generally resolved.

47 SPORT FEVER SWISSQUOTE MAY 2017 PAULS IMAGING PHOTOGRAPHY PAULS

FOOTBALL : PUBLICLY TRADED CLUBS FACE TOUGH EQUATIONS Only a small number of football clubs are listed on the stock market. For the most part, their performance is dicey owing to underhanded competition between sponsors and unpredictable outcomes.

BY GENEVIÈVE RUIZ

Investors were never really 37 teams in the index, which goes now, it has not even reached its interested in the market perfor- to show that the market perfor- 2011 level, while most other sectors “ mance of football clubs, ” says mance of football clubs is very un- have moved well beyond their sit- Patrick Rejaunier, market analyst predictable. Disastrous results led uation six years ago. Football clubs at Zonebourse in Annecy, France. to several teams leaving the index haven’t really recovered from the That statement says it all – or almost. and being bought by sponsors. That’s 2008 financial crisis. ” Not surpris- Currently, there are 22 clubs in what happened with Chelsea, which ing, considering the majority of the the Stoxx Europe Football index, is now owned by Russian billionaire industry’s shareholders are fans including well-known teams such as Roman Abramovitch. and not big institutional players. Manchester United, Borussia Dort- Why is its market performance mund, Juventus, Benfica and Olym- “ The Stoxx Europe Football is not so disappointing, considering that pique Lyonnais. In 2002, there were reliable, ” says Rejaunier. “ As of football is the second fastest grow-

48 SPORT FEVER SWISSQUOTE MAY 2017

CLUBS TO FOLLOW

MANCHESTER UNITED The exception The UK club Manchester United has won the most football championships of all time. Since 2016, it’s also the wealthiest club in the world. The club has reached the top of the Football Money League (annual ranking from the consulting group Deloitte), replacing Real Madrid, who was ranked #1 for 11 years. Manchester United first went public from 1991 to 2005, and The legendary Old Trafford then again on Wall Street in stadium – the bastion of 2012. Shares were issued at a Manchester United since unit price of $14 and currently 1910. The British football club stand at $17. Analysts consider is listed on the stock market, ManU a solid club. Because of making it one of the only clubs managing a successful its brand and global reputation, business in an otherwise it generates a lot of revenue hard-hit industry. through TV rights, sponsors and merchandising, which allows it to compensate for unpredictable sport outcomes. ing industry in the world after the publicly listed, with the exception HEADQUARTERS : MANCHESTER (UK) e-economy ? According to the Football of Manchester United, which has WORKFORCE : 799 Money League ranking conducted been listed on Wall Street since REVENUE (2016) : £515.3 M by consulting firm Deloitte, revenue 2012. “ The financial results of a MANU from the top 20 teams grew 12% in club are strongly linked to its wins 2016, reaching €7.4 billion. Accord- and losses, ” says Rondeau. After ing to the same ranking, last year a win, teams receive an inflow of OLYMPIQUE LYONNAIS even hit a new record high, with the cash in sponsorships and TV rights. Betting on infrastructure revenue of the three richest clubs Participating in the Champions Even though Olympique Lyonnais (Manchester United, FC Barcelona, League, for example, is equivalent to doesn’t make Europe’s top Real Madrid) exceeding €600 million, an inflow of €20 million. Therefore, 10 teams in terms of budget, seven times more than in 1997. a loss has catastrophic financial financial analysts are never- consequences for teams. It’s even theless interested in its market performance. It now has its own worse when relegation is involved. stadium and shopping centre, “ In market terms, one lost “ Studies show that in market OL Land. OL went public in 2007 match equals a loss of 1.1% terms, one lost match equals a loss with shares at a unit price of of the share value ” of 1.1% of the share value, ” says €24. The club then had some Pierre Rondeau, professor at the Sport Rondeau. “ A win increases share difficulties, and the price fell Management School in Paris value by 0.88%. So one win doesn’t to €2 in 2013. It went public make up for one loss ! ” because the stadium was being built, with some delays. During “ The football economy is complex and Another problem with listed clubs that time, the team was also particular, ” says Pierre Rondeau, comes from underhanded competi- losing frequently. But things professor at the Sport Management tion from unlisted clubs. Most of the improved considerably with the School in Paris. “ It doesn’t follow clubs that win championships are opening of the stadium, good the same rules as traditional busi- either non-profit companies (Real team performance and proceeds nesses. ” Only 5% of the 700 teams Madrid, FC Barcelona) or financed from the sale of players. HEADQUARTERS : LYON (FR) that compete in the European by sponsors (Chelsea, Paris-Saint WORKFORCE : 320 championship are publicly listed. Germain, etc.). “ These clubs are REVENUE (2015–2016) : €218.1 M And the best teams are usually not financed by what we call ’sugar OLG

49 SPORT FEVER SWISSQUOTE MAY 2017

daddies’ and can buy the best clubs choose to invest in addi- confirms Andreff. “ More than half players regardless of price, ” says tional assets, such as a stadium, of them are in the red. And for these Wladimir Andreff, professor emeri- shopping centres or fitness clubs. clubs, the market doesn’t have the tus at Panthéon-Sorbonne University “ Some football clubs in Denmark same corrective effects in terms of in Paris and president of France’s and Turkey who are part of the good governance that it can have on Observatoire de l’économie du sport. Stoxx Europe Football index have traditional companies. ” Some studies “ They don’t need to turn a profit and opted for this strategy and it has show that the football industry suf- have less budgetary constraints. worked well, ” said Andreff. “ These fers from structural weaknesses : How can listed clubs, whose goal are shares that have not suffered insufficient professional manage- is to generate dividends for its losses. There have even been cases ment, no financial supervision, aber- shareholders, compete with that ? ” where dividends were redistributed rations in the labour market and an to shareholders. This makes them abundance of unregulated intermedi- They can’t. Their financial equilibrium viable investments even though aries. Clubs could even be infiltrated is extremely precarious. In order a club’s performance may not be by the mafia. to win matches, teams must invest extraordinary. For its part, Olym- massive sums of money to pay the pique Lyonnais has started reaping salaries of good players. If a team the fruits of its stadium. These Last year, European loses, it no longer has the means clubs have assets that help them clubs spent a record to offer the same salaries. “ The compensate for the uncertainty of €3.3 billion to purchase issue for listed clubs is that they sport results. ” do not have tangible assets, like a a dozen players factory for example, ” says Andreff. “ TOO BIG TO FAIL ” “ A football club makes lots of mon- The solution here is diversification. ey mainly as a result of its players The problem is that the majority of “ There’s a mentality in football that and its wins, but also from ticket club management staff uses market goes ’we’re in the red, but it’s no big sales, TV rights, merchandising and funds not to diversify, but to pur- deal,’ ” says Rondeau. “ Several clubs sponsoring. These are uncertain chase very expensive star players. take the ’too big to fail’ approach. assets that fluctuate over time. ” To “ Most clubs are poorly managed from Fortunately, there are still some good improve their bottom line, certain a market standpoint, ” examples. The Bundesliga – Germa- ny’s national league – requires all teams to undergo a financial audit. Teams that do not pass the audit could be rejected from participating in the league. The UEFA now advo- cates for “ financial fair play ” to limit club losses. It even sanctions teams in some cases. The goal is to limit bailouts by sponsors and have greater control of club finances, much like the German model. Manchester United bought Premier League player Paul All hope is not lost for those wish- Pogba for a stagger- ing to invest profitably in football. ing €105 million, and Experts agree that it is possible to is in good shape due make money in football, but the money to its global popularity, particularly is probably not in the stock market. in Asia. Rather, the annual players market – called the mercato – attracts increasingly absurd sums of money year after year. Last year, European clubs spent a record €3.3 billion to purchase a dozen players. Manchester United acquired French midfield- er Paul Pogba from Juventus for €105 million, making him the most

NEWSCOM / DANIEL CHESTERTON / CITYPRESS24 NEWSCOM / DANIEL expensive player of all time.

50 GSAMFUNDS.com

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1 IBM, https://www-01.ibm.com/software/data/bigdata/what-is-big-data.html. 2 Source: Bain. This marketing material has been issued by Goldman Sachs International authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This material is provided for informational purposes only and does not constitute a solicitation in any jurisdiction in which such a solicitation is unlawful or to any person to whom it is unlawful. CORE® is a registered service mark of Goldman, Sachs & Co. Financial Square FundsSM is a registered service mark of Goldman, Sachs & Co. For Qualifi ed Investor use only – Not for distribution to general public. This document is provided to you by Goldman Sachs Bank AG, Zürich. Any future contractual relationships will be entered into with affi liates of Goldman Sachs Bank AG, which are domiciled outside of Switzerland. We would like to remind you that foreign (Non-Swiss) legal and regulatory systems may not provide the same level of protection in relation to client confi dentiality and data protection as offered to you by Swiss law. The prospectus, KIID, the articles, the annual and semi-annual reports of the Fund may be obtained free of charge from the Swiss Representative. In respect of the Shares distributed in Switzerland to Qualifi ed Investors, the place of performance and the place of jurisdiction is at the registered offi ce of the Swiss Representative. Swiss Representative: FIRST INDEPENDENT FUND SERVICES LTD, Klausstrasse 33, CH – 8008 Zurich. Paying Agent: GOLDMAN SACHS BANK AG, Claridenstrasse 25, CH-8002 Zurich. No part of this material may, without GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, offi cer, director, or authorized agent of the recipient. © 2017 Goldman Sachs. All rights reserved. 87032-OTU-495374 SPORT FEVER SWISSQUOTE MAY 2017

TRIUMPH OF THE TRACKSUIT

Sportswear has become a full-blown fashion accessory. This phenomenon has been driven by a handful of leading brands, such as Nike, Adidas, Lululemon and Under Armour, who have seen their sales skyrocket over the last few years.

BY JULIE ZAUGG

52 SPORT FEVER SWISSQUOTE MAY 2017

COMPANIES TO WATCH

NIKE The giant With a 16% share of the global market and 21% in the US, according to the latest Euromon- itor figures, Nike dominates the sportswear industry. “ Revenues have more than doubled and profits have nearly tripled between 2006 and 2015, ” says John Guy, analyst at Mainfirst. He expects the group to grow portswear has come a just consigned to the gym. This 9% annually until 2020, pri- long way since the tennis trend, called “ athleisure ”, made it marily thanks to its supremacy jerseys and skirts in- acceptable to wear trainers, yoga on the US market, which is the vented by Lacoste in the pants and tracksuits in the street, most profitable, and the signif- S1930s. Today, it is a huge market, at a restaurant or even to work. icant push that it has made in which is worth 232 Swiss francs “ Sportswear, especially trainers, the European and Chinese mar- billion worldwide. And it is still are now fashion accessories that kets. The company’s profits are growing. Between 2015 and 2019, have become integral to daily life for also excellent (24–26%) and market value should grow by an their owners, ” says Andreas Inderst, are significantly higher than the average of 5% every year, reaching analyst at Macquarie Securities. rest of the industry (10–12%). HEADQUARTERS : BEAVERTON (US) €262 billion, ” estimates John Guy, WORKFORCE : 70,700 analyst at Mainfirst. In 2016, the The Canadian brand Lululemon, REVENUE (2015–2016) : $32.4 BN sportswear market grew by 7%, founded in 1998, has been the NKE versus 3.8% for the fashion sector. best at capitalising on this phenomenon, with its understated and comfortable yoga pants becoming UNDER ARMOUR This trend, called a fixture on the streets of major The ambitious new kid cities, says Matt Powell, an ana- on the block “ athleisure ”, made lyst at NPD Group who specializes This newcomer in sportswear it acceptable to wear in the sports industry. The brand has seen a dramatic increase in trainers, yoga pants has also just launched a capsule recent years. “ Between 2009 and and tracksuits in the collection inspired by New York and 2016, sales increased by 28% street, at a restaurant Vancouver and which is more like per year, ” noted John Guy, an haute couture than sportswear. analyst at Mainfirst. Under Armor or even to work even surpassed Adidas in the US market in 2014, to become And they are not the only company number 2. “ A success due in to do this. “ Adidas and Puma have particular to its decision to invest This remarkable performance is followed the trend by launching in the sneaker market with a primarily due to the fact that the activewear lines linked to celeb- line inspired by the basketball public – especially millennials and rities, such as Kanye West, Stella player Stephen Curry. While the women – are more preoccupied with McCartney, Rihanna and Cara Baltimore-based company still their health than previous gener- Delevingne, who are reputed for generates the vast majority of ations and are taking part in more their fashion sense, ” says analyst its sales in North America (83%), sporting activities. Running, biking, John Guy. Similarly, Nike recently it has major expansion projects, yoga and swimming are growing in expanded its Jordan line, normally particularly in Europe, underway. popularity. In the US, the number entirely composed of basketball HEADQUARTERS : BALTIMORE (US) WORKFORCE : 15,200 of teens regularly taking part in shoes, to include a collection of REVENUE (2016) : $4.8 BN a physical activity has risen from city clothes. The brand has also UA 25% to 35% since the 1980s. teamed up with Givenchy designer Riccardo Tisci. The decision taken by What’s more, sportswear has Adidas to relaunch certain models of become more mainstream and not trainers with a retro look – such as

53 SPORT FEVER SWISSQUOTE MAY 2017

the Gazelle or the Stan Smith – that their Flyknit trainers and the Adidas are popular with fashionistas falls Boost sole, which is made from foam under the same logic, highlights Jay pellets and created in collaboration Xxx Sole, analyst at Morgan Stanley. with German chemical group BASF. And these companies are be- But if sports clothing is selling so coming even more futuristic : Under well, this is also because manufac- Armour, Nike and Adidas have all turers have been innovative. “ Under launched clothes and trainers that Armour has developed a range are equipped with chips and enable of special fabrics which protect the wearer to measure their heart- against perspiration and the sun, beat or the number of calories burnt. are ultra-light and odour-resistant, ” This information is then automati- explains Matt Powell. And the giants cally uploaded to online platforms in the sector are not resting on their that have been developed by these laurels either. Other examples of same brands, where the informa- this innovative creativity are Nike’s tion is analysed and can be shared flexible and light material used in across various social networks.

Adidas on the catwalk at Fashion Week in Lisbon. According to analysts, the brand is a wise investment.

“ The advantage of products using this kind of technology is that they can be sold at a higher price, ” says Volker Bosse, analyst at the investment bank Baader. “ They can cost anywhere from 10% to 15% more. ”

This innovation also extends to the manufacturing processes

This innovation also extends to manufacturing processes. Adidas has created a factory in Ansbach (Germany) that is almost entirely Model Heidi Klum, automated. This enables them to in yoga pants, manufacture trainers in record time out on the town in New York with the form, material and colour (14 June 2016). all personalised to match customer NEWSCOM / CMG/ZOJ TNYF WENN

54 SPORT FEVER SWISSQUOTE MAY 2017

ADIDAS The king of football According to analysts, the world number two in sporting equipment is a safe bet in investment terms. “ Football is the most popular sport in the world, and Adidas dominates the sector, primarily through sponsorship contracts for teams such as Manchester United and Real Madrid, ” explains Volker Bosse, analyst at Baader. This gives the company a quasi-monopoly on shirts sporting the names of the most famous players and a certain credibility in the eyes of the fans. The German group has also started to win market share in the US, where it has always been weak, with growth of 22% in 2016. HEADQUARTERS : HERZOGENAURACH (DE) WORKFORCE : 60,617 REVENUE (2016) : €19.3 BN ADS

PUMA The comeback ? “ Puma has started to reinvent itself by going back to its roots and concentrating on producing AFP / BRUNO, PEREIRA BRAZIL PHOTO PRESS sports products centred around performance. And it’s starting tastes. The brand estimates that by state activism. China, which will to pay off, ” explains Volker Bosse, analyst at Baader. For the factory will produce one million host the 2022 Winter Olympics example, the German company pairs of shoes every year. A second and dreams of holding the football has initiated partnerships with production centre of this kind will World Cup, has invested heavily stars such as Rihanna and play- also be opened this year in Atlanta over the past few years in promot- ers from the Arsenal football (US). The German brand has set itself ing public participation in football, club. But the company’s profits an ambitious objective : by 2020, it skiing and running. “ In 2015, China are still unsatisfactory and a aims to reduce the timescale from organised 134 marathons, com- takeover by Kering Group, which design to sale of its products, for pared with just 13 in 2010, ” says already owns 86% of Puma, is half of its entire production, from Bosse. By 2020, the sports market looking like a strong possibility. 6–12 months to just 45 days. will have grown to $500 billion. HEADQUARTERS : HERZOGENAURACH (DE) WORKFORCE : 11,054 REVENUE (2016) : €3.6 BN ACTIVISM IN CHINA The sportswear and equipment PUM The boom that the sportswear indus- market is already worth 21 billion try is experiencing is a real global Swiss francs, i.e. 9% of the glob- phenomenon. The biggest growth al total. Sports shops are every- has been seen in emerging markets, where in China. In the majority of especially in China. “ Manufacturers medium-sized Chinese cities, the are profiting from the emergence of only Western brands you will see a middle class that has the finan- are Starbucks, Nike and Adidas. cial means to purchase Western These two sports brands dominate brands, ” explains Volker Bosse. sportswear sales in China, with a This phenomenon has been helped combined market share of 30.6%.

55 SPORT FEVER SWISSQUOTE MAY 2017 NEWSCOM / GROUP

56 SPORT FEVER SWISSQUOTE MAY 2017

COMPANIES TO WATCH

BRUNSWICK Health club supplier This US conglomerate specialises THE FITNESS in the sale of fitness equipment to health clubs, and grew 22.5% between 2010 and 2015. Its revenue MARKET FLEXES was up 10% for Q4 2016 – with an increase of 24% for the fitness segment. “ We’re expecting revenue ITS MUSCLES growth between 6% and 8% in 2017, ” says Nathan Yates, analyst at Forward View. He sees high Health clubs are springing up everywhere growth potential for Brunswick’s and are finding favour in urban areas, where Cybex brand and SciFit, a line of people are looking for ways to work out that rehabilitation equipment that could are both effective and original. Which is great prove to be a big hit with hospi- news for fitness-equipment manufacturers. tals. Given the company’s sound performance, “ Brunswick shares BY JULIE ZAUGG are trading at attractive prices, ” says Yates. HEADQUARTERS : LAKE FOREST, ILLINOIS (US) WORKFORCE : 14,415 REVENUE (2016) : $4.5 BN ordon Bergfor gave the grow 3.5% annually by 2022, says BC world its first-ever exercise the market research firm Grand View machine in 1932 : a station- Research, to reach $13.2 billion ary bicycle that Bergfor – an versus $10 billion in 2014. The United NAUTILUS Gengineer from New York – designed States will absorb about 40% market Home workout equipment for his wife, who was battling a share, but the strongest growth will Nautilus generates most of its rev- neuromuscular disorder. The “ Exercy- be seen in the Asia-Pacific region, enue selling fitness equipment to cle ” quickly became a hit, and even particularly in India and China. individuals. It owes its success to counted celebrities such as John Wayne a handful of innovative machines. and President Eisenhower among its “ Ten years ago this company invented the Bowflex TreadClimber, a users. In 1936, the entrepreneur “ Cardio equipment has stair-stepper machine that quickly Francois LaLanne launched the first become more popular became a hit, ” says Frank Camma, health club chain in California, and than strength-training analyst at Sidoti & Company. “ And before long other chains were cropping equipment in recent three years ago it came out with up all over the place. years, because people are the Bowflex Max Trainer, which is perfect for short, intense workouts Today the industry is worth $81 billion, focusing more on their and which already generates with 151.5 million members world- health ” 25% to 30% of the company’s reve- wide. More than a third of them are in Frank Camma, analyst at Sidoti & Company nue. ” Nautilus’ 2016 acquisition the United States, where 17% of the of the high-end equipment maker population belongs to a health club. The most popular machines are the Octane Fitness and the launch this But there are also many in Brazil, treadmills, stationary bikes and spring of a tower connected to an Germany and Scandinavia. “ These elliptical trainers. “ Cardio equipment iPad—allowing Crossfit users to clubs have a simple business model : has become more popular than plan their workouts—should help Nautilus continue to grow. 70% to 80% of their revenue comes strength-training equipment in recent HEADQUARTERS : VANCOUVER (US) from subscriptions, and the rest years, because people are focusing WORKFORCE : 469 comes from other services such as more on their health, ” says Frank REVENUE (2016) : $406 M personal trainers and nutritional Camma, analyst at Sidoti & Company. NLS programmes, ” says Jim Thomas, a US The market has two facets : some consultant and industry expert. equipment is sold to health clubs, The fitness-equipment industry is and some is sold to individuals for also flourishing. It is expected to home use.

57 SPORT FEVER SWISSQUOTE MAY 2017

De plus en plus d’hôtels, d’entreprises ou d’hôpitaux se dotent en outre de salles de fitness.

Spring is in full bloom, and so is the market for fitness trackers and other smart watches. These devices will set you back only half the amount they would have less than five years ago. FITBIT A SPORTS COACH ON YOUR WRIST

The new generation of brace- The shape of these devices growth. However, “ if the number lets and other smart wearables has also changed : now they of wearables increases over four goes beyond simply counting can be headphones, such as years, their value will therefore the number of steps you take in the Jabra Sport Pulse, or used decrease since prices will drop, ” a day or the number of hours inside bike helmets, such as says Bradley Erickson, analyst at you sleep at night. Now, these the LifeBeam devices. Oakley Pacific Crest Securities. In 2012, devices such as Samsung’s worked with Intel to produce the average price of a wearable Gear Fit2, the TomTom Spark 3 a pair of sunglasses equipped was $800. Today, they are only and the Fitbit Charge 2 meas- with sensors, microphones and around $350-$380, according to ure blood pressure, heart rate headphones that act as a sort of the research firm Technavio. and number of sit-ups com- sport coach within the glasses. pleted, among other things. Richard Valera, analyst at The wearables market was worth Needham & Co., believes that the Some models are equipped with $28.7 billion at the end of 2016, fitness wearables trend will slow personal coaches that give according to Gartner, and is down. “ They’ve reached their peak instructions to optimise your expected to grow 25% per year ’cool factor’, and more and more fitness routine or improve your between 2016 and 2020, according people are leaving them in a draw- posture. Others can automati- to economic intelligence group er to collect dust. However, smart cally detect the type of exercise Research and Markets. New watches offer more functionality, you’re doing to accurately count features associated with augment- including fitness features, so that the number of calories burned. ed reality will feed this strong market will continue to grow. ”

58 SPORT FEVER SWISSQUOTE MAY 2017

What’s the secret of the industry’s which offers group rowing workouts. AMER SPORTS success ? After really taking off in In the same vein, a membership Fitness sensation in Asia the ’80s with chains like Bally Total to Crossfit – a chain launched 15 Amer Sports produces fitness equipment under the brand Fitness and Gold’s Gym, health years ago by a personal trainer from name Precor – one of the most clubs have undergone something of California – costs over $150 per month. well-known brands in the world. a renaissance in recent years and Members have access to a sort of “ Between 70% and 80% of the market has been segmented industrial garage – called the “ box ” those machines are sold to into premium and low-cost catego- – where they do exercises using their clubs, hotels and companies, ” ries. “ We’ve seen the appearance own body weight or pieces of assorted says Jari Räisänen, analyst at of premium clubs promising fast hardware, such as tyres and metal Pohjola. The Finnish company results, ” says Jim Thomas. “ Their poles. Not very glam, but it does the has seen its sales grow 8% customers are willing to shell out trick. to 9% annually since 2010, $200 to $300 per month. ” achieving most of its growth in At the other end of the spectrum, the Asia-Pacific region, though The most posh clubs in the US some clubs have adopted a low- the United States is still its include : SoulCycle, which offers cost approach. “ Planet Fitness is a biggest market. “ APEC countries accounted for only 8% cycling in a nightclub-like atmos- pioneer of this philosophy, ” says of Precor’s sales in 2009, ver- phere ; OrangeTheory, which offers Jim Thomas. “ They offer member- sus 17% in the previous year, ” workouts that alternate between ships starting at $10 per month, in says Räisänen. high- and low-intensity phases no-frills facilities with fewer person- HEADQUARTERS : HELSINKI (FI) allowing members to burn up to nel. ” And they have no scruples WORKFORCE : 8,526 1,000 calories per hour ; Aquaphysi- selling too many memberships, as REVENUE (2016) : €2.6 BN cal, which offers a modern take on they assume many of their members AMEAS water aerobics ; and Row House, won’t show up anyway. It’s not rare

FITBIT Leader in wearables The California company’s multi- coloured bracelets continue to dominate the fitness wearables market. “ More than 20 million Fitbits were sold last year, ” says Bradley Erickson, analyst at Pacific Crest Securities. The company’s brand is also very strong. “ There are true Fitbit fans, who adore the brand and say they’ve lost weight and became healthier because of the device. ” But Fitbit sometimes struggles to attract new customers, especially among intense athletes looking for more sophisticated devices. It also competes with companies that offer cheaper products, such as China-based Xiaomi. HEADQUARTERS : SAN FRANCISCO (US) WORKFORCE : 1,753 REVENUE (2016) : $2.2 BN FIT

A SoulCycle class at a Union Square studio in New York. The stationary bikes are some of the most

REUTERS / SHANNON STAPLETON popular machines.

59 SPORT FEVER SWISSQUOTE MAY 2017

for a club to have 6,000 members and rowers. Population ageing also GARMIN and only enough space to welcome plays a role. “ A country like Japan, Elite athletes’ favourite 300 at a time. In the United States, which has a large elderly popula- Much like its competitor Polar 67% of health club members never tion with high purchasing power, is (which is not publicly listed), Garmin specialises in high- even make use of their membership ! a very attractive market for end fitness trackers. “ Garmin The UK chain Pure Gym and US chain fitness-equipment manufacturers, ” offers sophisticated smart Town Sports International, which says Nathan Yates, analyst at watches, equipped with GPS has three locations in Switzerland, Forward View. More and more and heart-rate monitors, ” operate according to the same hotels, companies and hospitals said Richard Valera, analyst principle. are also acquiring fitness rooms. at Needham & Co. The company produces high-quality Equipment makers have also been products : the battery used in very good at innovating. Italy’s the Vivofit has a lifespan of More and more Technogym (TGYM) teamed up with one year, compared with a few hotels, companies the famous designer Antonio days for most other trackers. and hospitals are Citterio to produce sleek, stylish Valera expects that Garmin machines that are as much works will post solid growth in the also acquiring fitness wearables segment, of art as they are workout devices. fitness rooms which has increased 30% Other brands have equipped their over the last two quarters. machines with internet-linked The company’s only weakness touchscreens that allow users to is that the Garmin brand is Growth in exercise-machine sales tweet, shop and follow virtual not as well-known as Fitbit has been driven by the rising number running paths on Google Maps. or Apple. of clubs and by anti-obesity cam- After nearly a century, it looks like HEADQUARTERS : SCHAFFHOUSE (CH) paigns, which encourage people to the fitness market is still running WORKFORCE : 11,600 buy equipment like stationary bikes at full tilt. REVENUE (2016) : $3 BN GRMN

The treadmill, as reimagined by Italian designer Antonio Citterio, is becoming a trend in home fitness

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FRANÇOIS PORTRAIT SWISSQUOTE MAYSWISSQUOTE 2017 PORTRAIT SWISSQUOTE MAY 2017

Shoot for the stars More and more private projects are taking place in the field of space exploration. For investors, the opportunities seem endless. Some advice.

BY JULIE ZAUGG

pace, the ultimate frontier was extremely costly, while today a for Man, is attracting more smartphone can perform the same and more private entre- task, ” explained Philip Metzger, a for- preneurs. Five years ago mer NASA employee who studies the Sthere were only a hundred or so firms space market. The cost of satellites in the market, whereas now there has also plummeted. are thousands. “ In the United States alone, there are 3,780, ” noted Micah Walter-Range, director of research Only 24% of the and analysis for the Space Foun- dation. The majority of these new money invested players are start-ups, but a handful in aerospace is of large groups also seem very active publicly funded in the sector. “ Companies such as Airbus (AIR) are constantly buying out start-ups, ” he added. This climate has opened up many opportunities for investors. “ Com- Currently, according to the Space panies in the space industry are ideal Foundation, only 24% of the money for those looking to make long-term invested in aerospace is publicly fund- investments, ” indicated Simon Drake, ed. The remaining 76% is from private managing director of Space Ventures sources. Lower equipment costs and Investors. “ This is because develo- technological advances have lowered ping, testing and selling a product entry barriers to the sector, thus often takes several years. ” Yet, for encouraging the birth of more start- a patient investor who is ready to take ups. “ A few years ago, developing a a risk on new business models, the computer to control a space shuttle returns are often very high.

63 PORTRAIT SWISSQUOTE MAY 2017

INTERSTELLAR market could invest in one of these Energia (RKKE) which wants to organise FREIGHT popular companies. Orbital ATK, a round-the-Moon tour starting in Aerojet Rocketdyne and Safran 2022. World View Enterprises is also all reported a strong increase in developing a tourism programme : In 2013, the Falcon turnover last year and, according a hot-air balloon capable of climbing 9 rocket by SpaceX to analysts, this trend should con- to 32,000 metres. (a company created tinue. Boeing, driven by its signifi- by Elon Musk, CEO of cant number of orders in aviation, SpaceX also wants to join the space Tesla) was the first is another safe bet. It is also possible tourism party. Its CEO, Elon Musk, commercial rocket to invest in SpaceX with mutual announced in late February that it launched into orbit. funds from Fidelity Investments, an had sold two tickets to the Moon. The This inexpensive, re- American group that owns 10% of passengers are set to take off in late usable model, which can not only the company along with Google. 2018 for a week-long flight on board take goods into space but also the Dragon 2 spacecraft. Experts are bring them back down to Earth, calling it a very optimistic mission. revolutionised the sector. Orbital ATK (OA) and the Sierra Nevada The majority of initiatives in the Corporation very quickly joined space tourism sector are the work the Californian group. Together SPACE of unlisted companies. According to they have been contracted by TOURISM Simon Drake, “ this sort of investment NASA to supply the International is more adapted to people prepared Space Station (ISS) with cargo to bet on a start-up, people who can until 2024. Many people afford to give away millions in venture dream of go- capital. ” A more reasonable solution The next step is flights to take ing to space. is to invest in Northrop Grumman (NOC), astronauts into space. SpaceX, A handful the parent company of Scaled Com- alongside Boeing (BA), is still of firms posites, which manufactures carrier calling the shots. “ Its Starliner have set aircraft for Virgin Galactic. shuttle will start taking people themselves the goal of turning this to the ISS in 2018, ” announced dream into reality. The best-known Howard McCurdy, professor of among them is Virgin Galactic, public affairs at American Univer- founded by the owner of Virgin, sity in Washington, DC. The NASA Richard Branson. It aims to be the contract entrusted to SpaceX and first company to offer suborbital AN ARMY OF Boeing is worth $6.8 billion. But space flights to tourists. “ It is MINI-SATELLITES that’s not all. “ These companies different in that it has developed a will be able to provide NASA with spaceship, SpaceShipTwo, which is Satellites make four or five sites, and $25 million launched into space from a giant up the most will go to a country that cannot plane in the sky as opposed to established afford its own space programme, ” being launched from the ground, ” sector of the added the space policy expert. explained Micah Walter-Range. space market This plane, called WhiteKnightTwo, (see Swissquote In addition, a myriad of firms is the work of the group Scaled Magazine No. are coming up in the wake of Composites. 6/2016). “ Their business model is rocket manufacturers. Aerojet tried and tested and there is great Rocketdyne (AJRD) and Safran Blue Origin, a company created by demand for the services they offer, (SAF) provide propulsion systems. Amazon founder Jeff Bezos, is anoth- from satellite television to geolo- United Launch Alliance, a joint er influential player. New Shepard, calisation and telephone services, venture between Lockheed Martin its vertical rocket, has also been etc., ” indicated Simon Drake. It’s a (LMT) and Boeing, as well as the built with the aim of taking tourists market worth $330 billion on an Japanese company Mitsubishi into space. An even more ambitious international scale. The dominating (7011), have specialised in boost- project is that of Bigelow Aerospace, players in this sector are European ers. Astrotech Corporation (ASTC), created by American hotelier Robert companies Eutelsat (ETL), Inmarsat an incubator for space start-ups Bigelow, who plans to put inflatable (ISAT), Thales Alenia Space, which based in Texas, also stands out. housing units into orbit. Another ven- belongs to Thales (HO) and Leonardo An investor looking to enter the ture is that of Russian company RSC (FNC), and Airbus (EAD). But American

64 PORTRAIT SWISSQUOTE MAY 2017

companies Iridium (IRDM), Intelsat (I) projects in this field. An alternative and Loral Space & Communications is the boosters’ markets by means S3, THROWN OFF COURSE (LORL) are not to be written off. of Lockheed Martin, who bought IN PAYERNE Astrotech Space Operations in 2014. The sector is enjoying a resurgence. “ Revolutionise the launch “ Companies have started to sell of small satellites into fleets of mini-satellites or na- orbit ” – such was the goal no-satellites, weighing between one of ambitious Swiss start- and 10 kilos, that are able to deliver up Swiss Space Systems VISIONARY (S3). In the spring of 2014, images practically non-stop thanks PROJECTS Swissquote Magazine to the sheer number of them, ” published a report on the explained Chad Anderson, CEO of innovative company based Space Angels Network. They are When all of in Payerne, in the Vaud also infinitely cheaper : sending one Earth’s resourc- canton of Switzerland, of these satellites into space costs es have run where it envisaged building a space shuttle. It was around $110,000, compared to out, why not all systems go. S3 was $670 million for a classic satellite. go in search of creating partnerships with American company Planet Labs is more in space ? big names in aeronautics currently dominating this market. This is the idea (Dassault, Meggitt, Thales, It has just launched 88 nano-sat- developed by start-ups Planetary Elecnor) and boasted ellites into orbit, making a total of Resources, Deep Space Industries prestigious sponsors (Breitling). Assembly of 149 such models sent into space. and TransAstra, which want to mine the shuttle was set to start Another start-up, OneWeb, wants asteroids to extract precious met- in 2016 and the first test to send up 648 in order to provide als, such as platinum, or even oil flights were planned for internet connection to the remotest for rockets. “ The project is actually 2017...but alas, Dassault areas of the planet. more realistic than it might seem, ” pulled out of the project said Philip Metzger. “ Luxembourg in 2015, which seemed to put an end to the Astrotech Space Operations and just announced it’s going to invest great venture. Between Rocket Lab are experts in launching €200 million in this field. ” indecisive communication satellites. “ It’s a hugely undersup- and broken promises, plied market, ” says Chad Anderson. Similarly, Texas-based Shackleton the saga continued to be Last year, 160 to 170 satellites were Energy Company has set itself long and painful for S3, ready for launch but only a hundred the goal of producing energy from which eventually declared bankruptcy in December or so were deployed due to a lack resources on the Moon, while the 2016. The CEO Pascal of boosters – another reason to be Californian company Made in Space Jaussi was taken to court sad about the bankruptcy of Swiss has developed a 3D printer that can after being accused of company S3 which offered precisely be used in space. “ This will make forging securities and these services in this niche (see it possible to manufacture – in this was suspected of having inset on this page). zero gravity universe – objects that staged his own attack in cannot be produced on Earth, such the summer of 2016. Analysis of data generated by this as antennas that are several hun- armada of mini-satellites is also dred metres long, ” explained offering promising prospects. Philip Metzger. Philip Metzger thinks that “ oil companies who want to know the status of their pipelines, or farmers wanting to keep a close watch on their crops, are naturally going to turn to this sort of service. ” In light of this, American company Digital- Globe (DGI), whose turnover rose by 3.3% to $725 million in 2016, is an attractive investment opportunity. Betting on the boom in mini-satellites is also an option by investing in Intelsat and Inmarsat, which have

65 Focus on excellence. Take the lead.

over t isc he D 360°

ex e perienc

Enter the 360° experience

Discover how the lifestyle and attitude of a trader can closely mirror players of the Manchester United First Team squad including Wayne Rooney, Sergio Romero, Anthony Martial and Marcus Rashford.

swissquote.com/360 FREE TIME SWISSQUOTE MAY 2017

V FOR WIKIPEDIA WIKIPEDIA EASE TO READ, As well as having a “ normal ” Wikipedia CHF 5.- search function, this app also has a Apple Store special feature which provides news TO DOWNLOAD and articles about your location. It has an excellent interface with a carefully thought-out typography and layout. It has also been designed to make research easier, largely thanks to the main TOOLS OF TITANS screen that saves all your searches and By Tim Ferriss bookmarks articles you’ve already read. (Houghton Mifflin Harcourt, 2016)

ADVICE FROM THE STARS With a preface by Arnold Schwarzenegger WIFI PRIORITY and written by a self-help guru, this WIFI SORTING book is based on the concept that we With this tool it is possible to efficiently should spend less time on activities CHF 1.- sort and select networks available in and more time on reflection. The author Apple Store a given area. Once you have selected a references the routines and habits of network, WiFi Priority suggests block- billionaires, icons and performers and ing the other available networks to recommends that readers follow their avoid automatically connecting to them From CHF 18.- example in order to prosper. The book is another time, thus shortening the list divided into three sections : “ Healthy ”, of networks on your iPhone. No more “ Wealthy ” and “ Wise ”, the three pillars of success. Each section is peppered going back and forth to your settings with interviews from a multitude of ce- to get rid of unwanted networks. lebrities giving advice. It seems to work ! GREENIFY SAVE BATTERY LIFE Greenify optimises your battery life by Free putting energy-consuming apps that Google Play you use the least in hibernation mode. THE UNDOING PROJECT Rather than working quietly as back- By Michael Lewis ground tasks, these apps stop using (W. W. Norton & Company, 2016) the processor and smartphone memory, using less power as a result. A “ Hiber- CHOOSING REASON The prolific author Michael Lewis, who nate all ” shortcut allows you to put all brought us The Big Short, Flash Boys, apps in hibernation mode automatically. and Moneyball, has struck again with this bestseller which tells the story of two friends, both psychologists, Amos FOLLOWUP From CHF 18.- Tversky and Daniel Kahneman. In 1969, SIMPLIFIED DIARY these renowned experts came together This app will be extremely useful and changed our understanding of human CHF 1.- for those who have trouble keeping behaviour forever. Their work became ex- Apple Store, track of administrative tasks, be they tremely influential in the social sciences Google Play meetings, phone calls or work commit- field. It is based on the major discovery ments. It sends reminders and creates that people have the bad habit of letting bookmarks to increase productivity themselves be led by their emotions rath- and avoid wasting time. By bringing er than reason. This book explains how contacts and conversations together, to be a game-changer. keeping track is easy and efficient.

67 SWISSQUOTE SWISSQUOTE MAY 2017

French Election

TRADING THROUGH THE PRESIDENTIAL ELECTION

Swissquote provides exclusive coverage of the French presidential election on its website, with a detailed breakdown of views expressed on social media, analyst insights and investment offers.

WWW.SWISSQUOTE.COM/FRENCH-ELECTION MANHHAI

What impact can the French presiden- able : charts, tips and analyst opin- tial election have on stock and curren- ions, along with exclusive coverage of cy markets ? The teams at Swissquote the views expressed in real time on answer this and many other questions social media. A closer look at what’s on a new website set up specifically on offer, with Yann Quelenn, analyst for the event. A number of analysis from the eForex – Trading & Market tools designed for investors are avail- Strategy department.

68 SWISSQUOTE SWISSQUOTE MAY 2017

How did you come up with the How will the platform change investors could bet on a surprise idea of creating a website dedi- after the first round ? win. For example with Brexit, in cated to the French election ? As soon as the two winners of the the days leading up to the vote, the The purpose was to provide inves- first round are determined, content opinion expressed online in the tors with useful tools while offering will be expanded. We’ll set out two United Kingdom was favourable to attractive media coverage of the investment scenarios, one for each withdrawing from the European campaign. The website is now live candidate, featuring tips on cur- Union. But the polls didn’t pick up and not only does it feature analyst rency trading, indices and shares on that movement. Similarly, as opinions and investment advice, but should that candidate go on to be supporters of the National Front it also monitors information posted elected. For example in the Themes aren’t typically open about it, offi- on social media about each can- Trading section, we’ll identify the cial polls have trouble predicting didate in real time. This exclusive industries and companies in the the vote, and that might be more reporting, called the Social Media best position to grow in value under accurately detected using the Opinion Index, has been made pos- each candidate in office. An ex- tool developed with EPFL. If, as sible through our partnership with clusive infographic will also break the election nears, more opinions the Social Media Lab at the Swiss down their economic programmes, in favour of Marine Le Pen are Federal Institute of Technology in background, support, etc. expressed online, we could sup- Lausanne (EPFL), which draws pose that something is going on at on the latest advances in artificial Can you explain the concept that end. intelligence (see p. 70). behind the Social Media Opinion Index ? Do you plan to re-apply What financial advice is offered Twice a week until the evening the concept to other political to investors ? of the first round, we’ll measure elections ? On top of articles from financial the opinion expressed on social Absolutely. We’re going to set up a analysts and a media watch, we media using computer graphics similar platform for the German elec- offer a basket of stocks related to to assess the reputation of the tions, planned in August. And again, themes involved in the presidential top five candidates : Emmanuel we’ll be providing exclusive content. campaign. This basket is the latest Macron, François Fillon, Marine Le addition to the regular Themes Pen, Benoît Hamon and Jean-Luc Trading section available on our Mélenchon. Starting on Sunday website, where we provide poten- 23 April, with only two candidates tial investment solutions related left in the running, we’ll chart their to targeted themes. For the French progress with a daily analysis. presidential election, we thought Every day, an index will show the it would be interesting to project percentage of positive and negative ourselves into the future – hypo- views expressed about each can- thetical, of course – scenario of a didate. The timeline will monitor return to protectionism. Several opinion almost in real time. candidates, especially Marine Le Pen and Jean-Luc Mélenchon, put That means faster than with forward a protectionist approach traditional polls… to stimulate the economy. We want What’s useful here is the potential to show how investors could take difference that could emerge be- YANN QUELENN advantage of that possibility, by tween the results of traditional polls ANALYST identifying the companies that and direct measures of opinion on eFOREX DEPARTMENT - TRADING & MARKET STRATEGY would potentially benefit from it. social media. If the polls are off, SWISSQUOTE BANK

69 SWISSQUOTE SWISSQUOTE MAY 2017

French Election

“ THE FRENCH ELECTIONS WILL BE VERY INTERESTING TO FOLLOW ”

Capturing and analysing public opinion through social media is the mission of the EPFL Social Media Lab. We interviewed Jean-Luc Jaquier, business development director, to learn more.

Created in 2013, the EPFL Social what is expressed on the internet. standing posts that are ambiguous, Media Lab is developing tools that We collect a huge amount of data ironic or sarcastic, which are very can pinpoint public opinion from on social networks to obtain an popular on social networks. A the internet, and social media in overview of opinions. To do so, we comment may seem positive taken particular. The Lausanne-based lab use what we call Natural Language at face value, but in reality it means generated a buzz at COP21 in Paris Processing (NLP), which is the exactly the opposite. We also have at the end of 2015. Tools developed understanding of human language, to identify the fake news that con- by the lab made it possible to as well as graph analysis, which taminates social media. analyse and dissect opinions on determines the positions of various climate change all over the world in people, the connections between How does graph analysis fit into real time. The goal was to provide them, their respective influence, etc. the process ? the media, experts, NGOs and These two technologies use artificial Not only do we have to decipher companies with a revolutionary intelligence (AI), and by bringing the text, but we also have to underway to measure public opinion on them together we can gain a very stand the context. Is this a credi- social media. For the 2017 French precise understanding of public ble source ? How was the content presidential elections, the Social opinion shared on social media. shared and in which communities Media Lab will provide its expertise and places ? What is the impact ? to Swissquote, regularly delivering What are the main challenges Our algorithm builds a social-me- “ snapshots ” of French public opin- when it comes to artificial dia graph based on the answers to ion on various candidates. Director intelligence ? these questions. Jean-Luc Jaquier takes us behind The challenge is reaching a high the scenes of the lab. level of clarity in understanding Let’s look at an example. The tool a text. The branch of NLP that does determines that person A posted in Can you explain what your tool this is called Natural Language support of a candidate in the presi- does and how it works ? Understanding (NLU), and it is a dential election. If person B shares We capture, analyse and publish, vast research topic in AI. There is so that post in a positive way, then AI in real time, evolutions in public much room for improvement. One can deduce that person B is likely to opinion on a given subject through of the main challenges is under- also support this candidate. Con-

70 SWISSQUOTE SWISSQUOTE MAY 2017 EPFL

A few hours of Twitter and web activity around the French elections. The social media graph represents about 250,000 users, tweets and articles and how they are connected. Blue shows the references to articles, purple refers to tweets, orange to retweets and green to user mentions. The graph offers a visual exploration of the communities around the different candidates and how the opinion propagates across the social media. versely, if someone posts a positive The machine will then adjust the ative panel. So I’d say that these comment about a candidate but uses entire graph – which could include two methods complement each a sarcastic tone, the algorithm will millions of opinions – based on our other. On the internet and social understand that this person proba- input. The machine is able to adapt media, we’re in rather uncharted bly supports a different candidate. and learn. territory. Some demographics, mainly young people, express By combining NLP and graph Just how much can artificial themselves far more on social analysis in our algorithms, our tool intelligence improve ? media. The advantage of our tool is three times more precise than There is enormous room for im- is that we can measure opinion in if we just used NLP. The results it provement. In the next five to real time, directly from the source produces are already very precise 10 years, we will make huge pro- with no intermediary. In that – and a quantum leap ahead of any gress in understanding informa- sense, the French elections will be other tool to date. tion expressed by humans. Tools a fascinating case to observe. are getting better every day and can Where does human intervention analyse millions of data almost come in ? instantaneously, in any language We believe that big data is a way all over the world. to connect humans and machines. The machine will analyse the Now that we can capture public spread of opinion using the graph, opinion almost immediately, and then we zoom in on parts of will traditional polling methods the graph and score the analysis become obsolete ? using human knowledge. If the We can now capture a change machine made a comprehension of opinion in just a few hours. A error, we will point it out. It will traditional poll takes much longer, JEAN-LUC JAQUIER then recalculate and learn from around two or three days. But BUSINESS DEVELOPMENT DIRECTOR its mistakes. This is called ma- polls are the result of in-depth in- EPFL chine learning and deep learning. terviews and based on a represent-

71 SWISSQUOTE MAY 2017

NORTHERN IRELAND

IRELAND DUBLIN

The ultra-futuristic Bord Gáis Energy Theatre opened in 2010. The auditorium can seat over 2,000 people.

72 TRAVEL SWISSQUOTE MAY 2017 MELFOODY

TRAVEL The two sides of Dublin The Irish capital is known for its pub culture, but it’s lesser known as a high-tech hub. Home to some large multinationals, Dublin has become one of Europe’s most modern capitals over the past few years. The economic boom is reshaping the city, but its charming folklore remains.

BY SALOMÉ KINER

t’s become a trend. Ireland Twitter, LinkedIn, Amazon, eBay colourful doors (legend has it that cheekily tops economic and PayPal. They are now office the bright colours helped drunken charts in Europe with record neighbours at Silicon Docks, where revellers find their way home after growth (+26.3% in 2015 !). high-tech buildings, cool cafete- a night at the pub). The path is IThe success story is the result of rias and luxury hotels have sprung kept rather untamed, maintaining advantageous tax policies luring up among an industrial wasteland, its wild charm. Swans crane their businesses to Dublin. It all started creating a unique, varied urban stately necks at passers-by. Seat- in 2003, when Google decided to landscape. ed at a nearby bench, employees make the Docklands its European with loosened ties eat salad for headquarters. The former port To get the full effect of Dublin’s lunch. A young retired couple runs neighbourhood was a commercial newest neighbourhood, stroll from with their dogs. As you continue hub in the 19th century and is Portobello to the south bank of walking, red-brick patios gradually conveniently close to the centre of the Liffey along the waters of give way to glass facades, engi- Dublin. Other internet giants soon the Grand Canal. The greenway is neers wearing trendy sneakers and followed suit, including Facebook, lined with Victorian houses with modern gyms.

73 TRAVEL SWISSQUOTE MAY 2017

Go up Barrow Street, Google’s neighbourhood, or the Grand Canal Quay, and you’ll arrive at Grand Canal Square. This 10,000 sq. m square is overflowing with green flower- beds and neon and red pathways, designed by American landscaper Martha Schwartz. It is the epicen- tre of Silicon Docks and Dublin’s newest urban-design gem. It is in this futuristic square, next to the sharp lines of the Bord Gáis Energy Theatre, where you’ll find the five- star Marker Hotel. Its draughtboard windows shine on the dark waters of the canal. Visitors are drawn to its sophisticated neo-industrial atmosphere, whether to spend a few nights or to drink one of their renowned cocktails on the rooftop bar and admire the view, dotted with factory chimneys and church towers.

Head up the Hanover Quay along displays Ireland’s consumption of Just a few minutes’ walk from the central pond and you’ll soon fossil fuels in real time, which aims 5Cube is the Samuel Beckett Bridge, come across 5Cube. This surprising, to make passers-by conscious of which connects the North bank of sparkling kaleidoscope structure the environment. the Liffey. Inaugurated in 2009, the 120-metre-long cable bridge is the impressive work of master Spanish architect Santiago Calatrava. Sus- pended above the water by cables resembling the fragile shape of a harp, the bridge is a symbol of the neighbourhood’s new breath of life. Heading along the river towards the city centre, architecture aficionados will take the time to stop and admire the facade of the CHQ Build- ing. This excellently restored former tobacco and wine warehouse is now home to EPIC Ireland, the Irish emigration museum.

Indeed, Dublin hasn’t always been so booming. Well before becoming Europe’s high-tech hub, revitalised by an international younger generation, Dublin suffered from the Great Famine in the 19th century. Much of its population emigrated as a result. This is the history told Right in the midst of Silicon Docks, Grand by the Jeanie Johnston Tall Ship, Canal Square is a a three-master moored across symbol of Dublin’s from EPIC. The contrast between urban renewal. the photovoltaic facades of the PAUL JEANNIN PAUL

74 TRAVEL SWISSQUOTE MAY 2017

Docklands and the city’s past is located in its very first brewery. even more shocking after crossing Seven floors surround a glass the Liffey once again, when you atrium shaped in the form of a pint arrive at the Temple Bar neighbour- of Guinness and the tour ends with hood, a labyrinth of cobblestone a tasting of… Guinness. However, streets filled with pubs. Unlike the some just can’t stand the beer. In LED lighting at the Market Hotel, that case, head to the Irish Whis- The Clarence maintains a tradition- key Museum. You don’t have to be al charm, with an octagonal bar and an alcohol aficionado to appreciate wood-panelled rooms. It’s also a the secrets of whiskey. Its origins haunt for U2 fans, as lead singer and recipes are an interesting way Bono has owned the building since to learn about Irish history, which 1992. That’s as good a reason as includes Viking conquests, economic any to wander through Temple Bar, obstacles and an industrial renais- a neighbourhood where Dublin- sance. Perhaps the best way to end ers, engineers and workers come your voyage in time is to visit the together after work for a Guinness library of Trinity College, founded in or…a beef and Guinness pie. 1592. It is said to have inspired the architecture of Harry Potter’s Hog- The ageless Temple Bar, in the heart of The dark beer even has its own warts and the corridors swish with the Temple Bar area. museum : the Guinness Storehouse, the ghosts of geniuses past. HEATHER R HEATHER

The majestic Old Library of Trinity GET THERE College. Direct flights from Basel, Geneva and Zurich. From CHF 59.- per person.

WHERE TO STAY THE CLARENCE : starting at CHF 150.- per night (for two people) WWW.THECLARENCE.IE THE MARKER : starting at CHF 340.- per night (for two people) THEMARKERHOTELDUBLIN.COM

WHERE TO EAT THE HAIRY LEMON : the true Irish pub experience RUSTIC STONE : healthy cuisine from Miche- lin-starred chef Dylan McGrath DELAHUNT : a more upscale version of local cuisine OSTERIA LUCIO : Italian elegance in the heart of the Docklands IRISH WELCOME TOURS

75 CARS SWISSQUOTE MAY 2017

CARS Large-scale sportiness THESE LUXURY SALOONS ARE BECOMING SUPERCARS BY PHILIPP MÜLLER PORSCHE PANAMERA, REIMAGINED

MOTOR : 4.0L TWIN-TURBO V8 but this five-door was completely bhp (Turbo), it’s hard to drive any- HORSEPOWER : 550 BHP reinvented over the past year. It thing else. True, we didn’t push the 0 TO 100 KM/H : 3.8 s now joins the group of family 911s, (virtual) speedometer to its adver- STARTING PRICE : CHF 186,700.- despite its length of 5.05 m (the tised 306 km/h, but the 4L V8 en- Executive version is 5.20 m). The gine, the smooth new double-clutch hatchback design was replaced 8-speed gearbox (standard on all porty roadsters began appear- with a split rear wing spoiler, which versions) and the efficient four S ing in the mid 1950s in both will definitely turn heads. Built wheel drive and steering are enough Europe and the US. Take the iconic using Volkswagen’s new MSB plat- to make you forget the almost two- Jaguar Mk2 (1959), Chrysler 300 form, the Panamera maintains the tonne chassis when zipping through (1955) or the Maserati Quattroporte front motor. But the engine power turns. In terms of comfort, all you (1963), for example. At the time, got a boost thanks to two V-shaped need to know is the base could be a Porsche was mainly focused on the variable-geometry turbochargers Bentley ! The Panamera is a pleas- minuscule 356. The brand has made shaped by 6- or 8-cylinder motors. ure, with sophisticated textures, up for lost time, as we can see in Porsche’s E-hybrid and the enor- massage seats, a captivating sound the second generation Panamera ! mous diesel V8 Audi SQ7 are indeed system and a touch screen – a wel- The car was the ambassador for tempting. But after a few days come change from a dashboard full hatchbacks everywhere since 2009, behind the wheel of the petrol 550 of buttons.

ASTON MARTIN RAPIDE S BMW M760LI XDRIVE Style, sound and pure sensations – this aluminium This vehicle has pretty much everything : laser lighting, carbon luxury sport saloon, powered by a 5.9L V12 gesture controls, four-wheel drive and steering and a fuel-injected engine producing 560 bhp, can go from 6.6L 12-cylinder twin-turbo engine producing 610 bhp. 0 to 100 km/h in just 4.2 seconds. A vehicle for driving 0 to 100 in 3.9 seconds. From CHF 216,410.- aficionados who like to take control. From CHF 203,900.-

76 GET THE NEXT ISSUE !

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BOUTIQUE

FUNKY COLOURS

This year, Audemars Piguet is launching the Royal Oak Offshore Diver Chronograph in a range of “ funky colours ”, from dark blue, fizzy lemon yellow and lime green, to bright orange. This diving model is waterproof to 300 m and has a rotating inner bezel with a diving scale and zone from 60 to 15 minutes and luminescent white gold applied hour-markers and hands for increased visibility both in the water and on the surface. www.audemarspiguet.com CHF 18,000.- CIGAR ARMCHAIR

360 SOUND The RA 1.15 is an armchair made specifically for cigar lovers by The new wireless compact BeoPlay M5 the architect Rodrigo Gonzalez from speaker from Bang & Olufsen evenly Chile and the German Alexander distributes 360 sound. There are three Sauer, the two men behind the El preset modes to maximise the sound Purista label. The chair is cus- quality based on the speaker’s position tom-made with a walnut and beech in the room. Designed by Cecilie Manz, wood base covered in leather, and an award-winning Danish designer, this features drawers built in to the arm- anodised aluminium speaker, covered rests to store the smoker’s equip- with a wool blend fabric, has a discreet, ment, such as an ashtray, lighter, elegant look. cigars and even... a whisky glass ! www.beoplay.com www.elpurista.de CHF 649.- From CHF 2,850.-

ELECTRIC AND MUSICAL

The Slovenian company Noordung has created the Angel Edition, a limited edition, entirely handmade electric bike of superior design with an aerodynamic carbon-fibre frame, leather saddle with the Brooks stamp, and light as a feather at 15.6 kg. Its distinctive features include a built-in sound system to listen to music on the move and a USB port to charge your smartphone at any time. www.noordung.com CHF 10,397.-

78 BOUTIQUE SWISSQUOTE MAY 2017

SOLAR-POWERED BARBECUING

Golden sausages in just 20 minutes without using coal, gas, electricity or even wood. That’s the Gosun Sport Solar Cooker guarantee. Designed to make a meal for two, this portable solar barbecue can reach a temper- ature of 290 °C to grill, heat, boil and steam food. It can even cook at night or through clouds thanks to its battery which absorbs and stores the sun’s energy throughout the day. www.gosunstove.com CHF 278.-

SMART BOXING

PIQ, the French start-up specialised in sport sensors, has got together with Everlast, the American kit supplier, and launched the first connected device for boxing. The device, which fits in to a wristband, analyses movements and gathers data to highlight your winning factors and guide you to victory. www.piq.com CHF 109.- THE SELFIE DRONE

The Chinese start-up Zero Robotics has just unveiled the Hover Camera, a compact, foldable selfie drone with a camera to capture moments in 13-megapixel photos and 4K video. Thanks to a sonar and digitally-stabilised cameras, with facial recognition and body tracking technology, the flying object adopts the ideal position to follow and cover its target from all angles. www.gethover.com CHF 603.-

WELL-ARMED

Official supplier to the American army, SOG takes its name from a special ops unit tasked with covert missions in the jungle during the Vietnam War. And that shows in their most recent creation, the Baton Q4, an essential tool for survival – both in the wild and at the office. This multi-tool, which slips easily into your pocket, is equipped with 10 tools, including two screwdrivers, pliers and a tin opener. www.sogknives.com CHF 120.-

79 PRIVATE ISSUES SWISSQUOTE MAY 2017

MONIKA RÜHL Monika Rühl has headed the Board of DIRECTOR AT ECONOMIESUISSE Management at economiesuisse, the BORN ON 12 DECEMBER 1963 IN UNTERSEEN, Swiss corporate union, since 1 September CANTON OF BERN 2014. She studied literature and the history of Italian and French language in Zurich before undertaking diplomatic training in Bern, Brussels and Geneva. From 1994 to 2002, Ms Rühl held a number of management positions at the Swiss Federal Department of Foreign Affairs (FDFA), the last of which was with the Mission of Switzerland to the United Nations in New York. She then acted as personal advisor to the Federal Councillor with the Christian Democratic People’s Party, Joseph Deiss, for four BALLET, years, first at the FDFA, then at the Federal Department of Economic Affairs (FDEA). Monika Rühl led the General ENGADIN Secretariat at the Federal Department of Economic Affairs, Education and AND THE Research (EAER) from 2011 to 2014, overseeing a team of 100 people.

EAGLES DR

A KEY EVENT FROM YOUR CHILDHOOD ? A SONG THAT SUMS YOU UP ? Forgetting my ballet slippers for the annual Hotel California by the Eagles. That song performance of the ballet school, and not is part of my youth. being able to dance. THE IDEAL WOMAN ? THE PROFESSION YOU WOULD HAVE LIKED TO DO ? She focuses on reaching her goals and ideals Ballet dancer or another artistic profession, and doesn’t get discouraged. for example a gallery owner. THE IDEAL MAN ? YOUR SECRET HOBBY ? The partner I’m with. Cleaning : it’s exercise and relaxation at the same time. And the result is THE IDEAL ANIMAL ? immediately visible ! Birds, because they have an overview from above but always come back to the ground. SOMETHING THAT INSPIRED YOU RECENTLY ? Engadin is a place that continuously SOMETHING CRAZY YOU DID RECENTLY ? inspires me, in any season. I bought a whole new spring wardrobe by a Swiss designer, even though my closet was already full. A PLACE THAT MADE AN IMPACT ON YOU – AND WHY ? I lived in New York City for four years YOU MAKE 5,000 SWISS FRANCS ON THE STOCK EXCHANGE. and was there on 11 September 2001. I love WHAT DO YOU DO WITH THE MONEY ? the city, but I was very scared that day. I go on holiday with friends to Engadin or to the seaside, to mix exercise and wellness. THE FILM THAT YOU WOULD HAVE LIKED TO EXPERIENCE ? Divine Order by Petra Volpe (2017). Out of A BOOK THAT YOU RECOMMEND ? admiration for all women (and men) who Stiller by Max Frisch. I always enjoy reading that fought for women’s suffrage. book, because it questions who we really are.

80 TO BREAK THE RULES, YOU MUST FIRST MASTER THEM.

THE VALLÉE DE JOUX. FOR MILLENNIA A HARSH, UNYIELDING ENVIRONMENT; AND SINCE 1875 THE HOME OF AUDEMARS PIGUET, IN THE VILLAGE OF LE BRASSUS. THE EARLY WATCHMAKERS WERE SHAPED HERE, IN AWE OF THE FORCE OF NATURE YET DRIVEN TO MASTER ITS MYSTERIES THROUGH THE COMPLEX MECHANICS OF THEIR CRAFT. STILL TODAY THIS PIONEERING SPIRIT INSPIRES US TO CONSTANTLY CHALLENGE THE CONVENTIONS OF FINE WATCHMAKING.

ROYAL OAK CHRONOGRAPH IN STAINLESS STEEL

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