Annual Report 2012
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ANNUAL REPORT 2012 GLOBAL OPEraTIONS NOVOMATIC activities NOVOMATIC core markets GLOBAL OPEraTIONS NOVOMATIC production and R&D locations Annual Report 2012 4 01 OVERVIEW ORGANIZATIONAL CHarT OF THE NOVOMATIC GROUP CONTENTS OF NOVOMATIC AG OVERVIEW OF KEY FIGURES CORPOraTE HISTORY Organizational Chart* of the NOVOMATIC Group NOVOMATIC AG ACE Casino Holding AG Gryphon Invest AG Holding (Austria, direct 92% and indirect (Switzerland, 100%) (Switzerland, 100%) 8% Gryphon Invest AG) Casino operator Casino Mendrisio (100%) Casino Locarno (54.5%) Austrian Gaming Industries GmbH Casino Bad Ragaz (33.3%) (Austria, 100%) casino and gaming facility operator, European Data Project s.r.o. R&D, production, rental, sale (Czech Republic, 100%) production, operations, casino and ADMIRAL Casinos & Entertainment AG gaming machine operation (Austria, 100%) gaming facility operator ADMIRAL Sportwetten GmbH (Austria, 100%) sports betting provider ATSI S.A. Greentube Internet (Advanced Technology Systems Entertainment Solutions GmbH International, Poland, 82%) technology center (Austria, 100%) gaming solutions developer for the Internet, mobile devices and iTV HTM Hotel und Tourismus Management GmbH (Austria, 100%) casino operator, including Hotel Admiral am Kurpark and Hotel Sacher Baden in Baden Spielbank Berlin Gustav Jaenecke GmbH & Co. KG (Germany, 92.04%) casino operator LÖWEN Entertainment GmbH (Germany, 100%) R&D, production, rental, sale, gaming facility operator Crown Technologies GmbH (Germany, 100%) R&D, production, rental, sale Adria Gaming International S.p.A. (Italy, 100%) gaming facility operator, rental Astra Games Holdings Ltd. (Great Britain, 100%) R&D, production and sale Alfor (Latvia 60%) gaming facility operator Gamestec Leisure Ltd. (Great Britain, 100%) gaming facility operator Bell-Fruit Games (Great Britain, 100%) producer Novo Sun (Chile, 50%) MonticelIo Grand Casino, casino joint venture *) major shareholdings 7 Annual Report 2012 Contents 01 Overview 03 CSR Report 2 NOVOMATIC Global Operations (Corporate Social Responsibilty) 6 Organizational Chart of 48 Foreword by the CEO the NOVOMATIC Group 49 NOVOMATIC Mission Statement 7 Contents 50 Corporate Citizenship 8 Overview of Key Figures 52 Stakeholder Dialog 10 Corporate History 54 Responsible Gaming 62 Employees* 02 NOVOmaTIC AG Group 66 Environment 14 Foreword by the Founder & 68 Sustainable Business Majority Shareholder 74 Code of Conduct 16 Foreword by the Board of Directors 76 The Novomatic Forum 18 The World of NOVOMATIC 80 The Making of CSR Portraits 22 Strategy 81 Report Parameters and Contact 24 Gaming Machines 82 GRI Index 26 Research & Development 83 Independent Limited Assurance Statement 28 Production 30 Sales 04 Consolidated Financial Statement 32 Casino Operations 86 Management Report 34 Electronic Casinos 104 Consolidated Balance Sheet 36 Sports Betting 106 Consolidated Profit and Loss Statement 38 Online Gaming 107 Consolidated Statement of 40 Employees* Comprehensive Income 42 Regulatory Environment 108 Consolidated Cash Flow Statement 110 Consolidated Statement of Changes in Equity 111 Notes to the Consolidated Financial Statements 155 Statement by the Board of Directorss 156 Auditor’s Report 05 Individual Financial Statement 160 Balance Sheet 162 Profit and Loss Statement 164 Notes 175 Auditor’s Report *) In order to improve readability, some terminology is used only in it’s masculine 177 Report of the Supervisory Board form. Nevertheless, all passages refer equally to members of both genders. 180 Imprint Annual Report 2012 8 Overview of Key Figures SaLES REVENUE (IN MILLION EUR) 1,537 2012 1,387 2 011 1,184 2010 EARNINGS BEFORE TAXES (IN MILLION EUR) 273 2012 215 2 011 198 2010 9 Annual Report 2012 COMPANY KEY FIGurES EMPLOYEES ANNuaL avEraGE 2012 2 011 13,352 2 010 11,818 10,544 CONSOLIDATED PROFIT & LOSS STATEMENT (IN MILLION EUR)* 2012 2011 2010 Sales revenue 1,536.7 1,386.8 1,183.7 EBITDA 531.0 490.9 449.4 EBITDA margin (EBITDA/sales) in % 34.6 35.4 38.0 Earnings before interest and taxes (EBIT) 288.9 254.5 223.1 EBIT margin (EBIT/sales) in % 18.8 18.4 18.8 Earnings before taxes 272.9 215.1 198.2 Consolidated annual profit after taxes 194.3 160.3 131.5 CONSOLIDATED BALANCE SHEET (IN MILLION EUR)* 2012 2011 2010 Balance sheet total 2,222.9 2,183.7 1,825.7 Equity 974.3 841.5 738.0 Equity ratio (equity capital/total assets) in % 43.8 38.5 40.4 Number of employees, annual average 13,352 11,818 10,544 * Source: Consolidated Financial Statements as of 12/31/2011 and 12/31/2012 as per IFRS Annual Report 2012 10 CORPOraTE HISTORY Growing Success In its relatively short 32-year history, the NOVOMATIC Group has become one of the top players in the industry and the clear number one in Europe. ESTABLISHMENT ESTABLISHMENT Founded by of the sports betting company Market Entry ADMIRAL Sportwetten GmbH Prof. Johann F. Graf in Central, Eastern and Southern Europe 80 89 91 05 06 07 08 Acquisition INAUGURATION Crown Technologies GmbH INAUGURATION CASINO ADMIRAL (German premium gaming Monticello Grand Prater, Wien machine manufacturer) Casino & Entertainment Acquisition World with Sun Crown Gaming S.A.C., Peru International und other partners Revolution LÖWEN Entertainment revolutionizes the German gaming market with its new multi-game concept NOVOLINE 11 Annual Report 2012 CORPOraTE HISTORY ESTABLISHMENT Austrian Gaming Acquisition Industries GmbH of the majority share in Astra Games Ltd, UK Acquisition Revolution LÖWEN Entertainment GmbH First NOVOMATIC (German gaming machine manufacturer) multi-player devices revolutionize the market 95 96 03 04 09 10 11 12 Bonds Acquisition INAUGURATION 2 corporate bonds with Spielbank Berlin NOVOMATIC HQ a total volume of 92.04% EUR 350 million in Gumpoldskirchen ACQUISITION Acquisition Substantial assets Market entry G. Matica, Italy of the Danoptra Italy 80.94% Gaming Group Entry of the online market (Bell-Fruit Games via acquisition and Gamestec of the Greentube Group Leisure Ltd.) Annual Report 2012 12 02 NOVOMATIC AG-GrOUP FOREWORD BY THE FOUNDER & MaJORITY SHarEHOLDER FOREWORD BY THE BOarD OF DIRECTORS THE WORLD OF NOVOMATIC STRATEGY GAMING MACHINES RESEarCH & DEVELOPMENT PRODUCTION SALES CASINOS ELECTRONIC CASINOS SPORTS BETTING ONLINE GAMING EMPLOYEES REGULATORY ENVIRONMENT FOREWOrd BY THE Founder & Majority Shareholder FOREWOrd I AM ParTICULarLY GLAD THAT, DURING THE FISCAL YEAR, NOVOMATIC AG WAS NOT ONLY ABLE TO ACHIEVE THE HIGHEST R EVENUES EVER RECORDED DURING ITS 32-YEAR HISTORY, BUT ALSO CAME TO EMPLOY 14.9 PERCENT MORE PROFESSIONALS THAN BEFORE. Dear Ladies and Gentlemen, During fiscal year 2012, it became apparent that the At the same time, it opens up much better opportunities for consequences of the global economic and financial crisis us to address the important markets in Latin America, where may still be haunting us for a while to come – which is why I we have been able to achieve considerable success during am particularly proud of and happy about the developments recent years. The same applies to Great Britain, where our during this past year. NOVOMATIC AG can now look back acquisition of substantial assets previously owned by the upon the most successful period of its 32-year corporate British integrated gaming entity Danoptra Gaming Group has history. created a true home market with more than 1,000 employees: the four companies include Gamestec, operator of more than A few years ago, I noted here that in economically difficult 15,000 gaming terminals, as well as Bell-Fruit Games, the times my main goal is not profit maximization, but rather the device manufacturer with the longest history, which will be safety and security of the jobs we are able to offer our employ- celebrating its 50th anniversary this year. ees. That is why I am particularly glad not only that fiscal year 2012 saw NOVOMATIC AG’s highest revenues ever, but Our prospects for the future remain focused on maintaining also that we managed to increase in the number of our our position as a trendsetter in the area of research and employees to 13,800, meaning an increase of 14.9 percent. development, as well as the production of highly innovative gaming devices, which are not only used by our own gaming In a persistently difficult economic environment, however, our operations but also exported to 80 countries worldwide. declared objective of preparing the NOVOMATIC Group for these challenging times by means of a continuous process Apart from technological development, however, our must continue to be our utmost priority. Our joint efforts to employees play a central role as the foundation of our long- significantly increase our cost efficiency and to continuously term success. I strongly believe that the most important optimize our positions in the markets must therefore be decisions in a company always involve people. That is why continued, in order to solidify our position as Europe’s leading our NOVOMATIC family – which last year grew to more than gaming group and one of the top players worldwide. 19,000 members – remains our most valuable capital. Apart from ensuring the long-term stability of our home Gumpoldskirchen, April 2013 market Austria, where 2012 saw important steps taken and Founder & first successes achieved, we were above all able to grow in various jurisdictions worldwide during the past year. Among other things, this included the establishment of NOVOMATIC Americas Holdings Inc. with its registered office in the US Majority state of Florida: with this, for the first time ever, we have created a North American base suitable for a cautious market entry. Professor Johann F. Graf Shareholder Founder and Majority Shareholder Annual Report 2012 16 FOREWOrd BY THE Board of Directors Mag. Thomas Graf DI Ryszard Presch Mag. Peter Stein Dr. Franz Wohlfahrt FOREWOrd OUR SUSTAINABILITY REPORT DOCUMENTS OUR OBJECTIVE OF DEMONSTRATING A STRONG SENSE OF RESPONSIBILITY IN A VERY SENSITIVE INDUSTRY. Dear Ladies and Gentlemen, In the financial year 2012, NOVOMATIC AG managed to Since November, we have been demonstrating that offe- increase its sales revenue by eleven percent to EUR 1,537 ring gaming services and effectively protecting players are million.