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Recipes for Success

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Recipes for Success Recipes for Success Annual Report 2016 Facts and Figures Group Casinos Austria Casinos Austria Österreichische (consolidated) AG International Lotterien (consolidated) Ges.m.b.H. Gaming revenues and bets placed incl. ancillary revenues in millions euro 2016 3,885.95 – 126.37 – 2015 3,599.69 – 133.75 – Gaming revenues in millions euro 2016 – 326.83 – 3,351.98 2015 – 310.091 – 3,084.05 Taxes, duties and social security contributions in Austria in millions euro 2016 Total 609.25 127.45 – 466.12 Gaming-related taxes and duties 525.75 93.41 – 430.94 Other taxes, duties and social security contributions 83.5 34.04 – 35.18 2015 Total 589.35 118.93 – 461.28 Gaming-related taxes and duties 518.83 88.25 – 429.39 Other taxes, duties and social security contributions 70.52 30.68 – 31.89 Operating result/Operating profit in millions euro 2016 150.06 29.99 34.79 57.74 2015 100.47 9.701 8.08 61.921 Annual surplus in millions euro 2016 – 74.22 – 67.70 2015 – 20.35 – 60.32 Group result in millions euro 2016 91.20 – 9.14 – 2015 55.28 – -3.81 – Employees annual average full-time equivalent (FTE) 2016 4,2332 1,8083 1,717 486 2015 4,2562 1,6993 1,787 497 Casino guests in millions 2016 7.81 3.01 4.80 – 2015 7.57 2.72 4.85 – Gaming tables 2016 569 232 337 – 2015 545 211 334 – Slot machines 2016 6,402 2,062 4,340 – 2015 6,365 2,072 4,293 – Video lottery terminals (WINWIN, CAI) 2016 1,666 – 1,038 – 2015 1,393 – 750 – 1 Adjusted. 2 Incl. win2day, WINWIN, tipp3 and Rabcat. 3 Incl. Cuisino, CAST, CCB and CALL. Recipes for Success Annual Report 2016 Casinos Austria AG Mission Corporate Profile Casinos Austria AG and its affiliates and subsidiary Casinos Austria is a leading national and international companies provide gaming and entertainment of the gaming corporation that offers its guests fun gaming and highest order. Integrity, years of experience and absolute entertainment in stylish settings. Responsibility toward respect for the particular socio-political responsibility each and every one of these guests is an integral part of that goes hand-in-hand with gaming guarantee the trust our corporate culture. – and confidence of our guests, customers, investors and, above all, the licensing authorities. Shared visions and Our company is founded on the principle of absolute inte- innovativeness foster the development of the group and grity, and our commitment to this principle far exceeds the safeguard the workplaces of our employees, whose active statutory requirements. – participation and constructive input we both encourage and value. These ethical and socio-political objectives can only be realized if Austria’s casinos continue to be managed by one single company. – Casinos Austria places great importance on sponsoring and provides support and resources – both financial and otherwise – to a wide range of projects and initiatives in many different sectors, including the arts, sports, social causes and tourism. – Alongside loyalty, customer service excellence and social responsibility, our guiding principles also embrace a clear commitment to supporting and developing our employees. – At Casinos Austria, the way we do business is defined by the socio-political objectives enshrined in the Austrian Gaming Act (Glücksspielgesetz). This includes, above all, protecting the economic well-being of our guests and recognizing that increased competition contradicts such protection. – 2 Contents Facts and Figures 2016 C2 Mission 2 Corporate Profile 2 Foreword by the Management Board 5 The Management Board 8 The Company 10 The Group 10 The Organization 11 Supervisory Board Report 12 The Supervisory Board 12 Legal Foundations 13 Compliance and Management Systems 15 Casinos in Austria 30 Casinos Austria International 38 Austrian Lotteries 40 win2day – Online Gaming 43 WINWIN – Video Lottery Terminals 46 tipp3 – Sports Betting 47 Responsibility 60 Responsible Gaming 60 Corporate Social Responsibility 64 Security 66 Human Resources 68 Sponsoring 71 2016 Fiscal Year 84 Economic Update 84 The Cuisino Restaurants Gaming Revenues and Earnings 85 Innovation, Trends and Developments 87 Cuisino Baden 19 The Casino Gaming Experience 91 Cuisino Bregenz “Falstaff” 23 Casino Cuisine with Cuisino 94 Cuisino Bar & Lounge Innsbruck 27 Multifaceted Event Provider 96 Cuisino Kitzbühel 49 Outlook 99 Cuisino Kleinwalsertal 53 Cuisino Linz 57 2016 Financial Statements 100 Cuisino Salzburg 73 Cuisino Velden “Die Yacht” 77 Profit and Loss Statement 100 Cuisino Wien 81 Balance Sheet 102 Consolidated Profit and Loss Statement 104 Recipes for Success Consolidated Balance Sheet 105 to Whet the Appetite C3 Imprint 108 Annual Report Casinos Austria 2016 3 > (l. to r.): Dietmar Hoscher, Bettina Glatz-Kremsner, Karl Stoss. 4 Recipes for Success Foreword by the Management Board Dear Reader, The earnings situation in the Casinos Austria Inter- national casinos stabilized in 2016. Thanks to a tough The recipe for a perfect dish is always highly sought restructuring program, the group not only posted clearly after and is one of the best-kept secrets in a restaurant. positive earnings that exceeded those achieved in the The ingredients are crucial and have to be of the highest previous year, it also reported positive consolidated quality. But the right amount of dedication, concentration earnings for the first time since 2009. In 2016, the and focus on the target group should not be overlooked CAI group posted revenues of 126.4 million euros and in the preparation either. It’s all about getting the right increased its operating earnings by 26.7 million euros to mix. In this year’s annual report, we show you our perfect 34.8 million euros. mix – the recipe we used to make the 2016 business year at Casinos Austria one of the most successful in the The product launches in the Casino Games section on history of our company. win2day and the associated expansion of its mobile services demonstrated their effect in a 17.78 percent Ingredients like an international gaming mix, award- growth in sales for the electronic lotteries on the win2day winning cuisine and more than 1,900 functions and online gaming platform to 1.54 billion euros. Among events attracted over 3 million guests to Casinos the classic lottery games, the EuroMillions product Austria’s casinos in 2016 – an increase of 10.6 percent recorded a 2.61 percent rise in sales. The Joker product compared to 2015. This, in turn, led to a strong rise in our likewise profited from this positive trend with sales up gaming revenues to 326.83 million euros – 5.2 percent by 1.88 percent. WINWIN succeeded in reversing the up on 2015. Our gastronomy subsidiary also celebrated previous year’s trend, benefitting from the new outlets success: eight Gault&Millau toques make Cuisino the opened in 2015 and 2016 with a 10.76 percent growth in most-decorated gastronomy firm in Austria. And with sales to 499.53 million euros. Austrian Lotteries posted 17.07 million euros in sales, business was also clearly total gaming revenues in 2016 of 3.35 billion euros, booming – up by 12.67 percent compared to 2015. an increase of 8.69 percent compared to 2015. tipp3 enjoyed a successful year with the European Football Casinos Austria invested some 38 million euros last year Championship and further strengthened the position of in the continued development and equipping of our Österreichische Sportwetten GmbH and the tipp3 brand. casinos in Austria. More than 1,000 new slot machines from eleven different manufacturers with a total value of All these positive developments contributed to the 16 million euros were installed. These new slot machines Casinos Austria and Austrian Lotteries Group posting have been in operation since 1 January 2017. Phase two consolidated sales of 3.9 billion euros and a group result of the renovations at Casino Graz were completed with of 91.2 million euros in the 2016 reporting year. We also the relocation and redesign of the restaurant. In Casino paid some 610 million euros in taxes, duties and social Velden, the “Die Yacht” Cuisino Restaurant was opened security contributions in 2016. As an acknowledged and after a record renovation period of just one month. The certified leading company in Austria, our group places extensive extension and conversion measures at Casino great importance on regional value creation. We also Salzburg were likewise completed in 2016. The new provide jobs with good career opportunities for more Casino Lounge created in the course of the renovations than 4,200 people worldwide, including some 2,300 peo- opened for business, the restaurant area was extended ple in Austria. and the roof was completely restored. In July 2016, a further construction project was finalized at Casino By the time you read this annual report, Casinos Austria Bregenz, namely the summer terrace at the “Falstaff” will be in the middle of an anniversary year. In November Cuisino Restaurant with its new, illuminated Cloud Bar. 2017, the company will celebrate its 50th anniversary, an And last but not least, the main gaming room on the occasion we will be celebrating in style with the guests in ground floor at Casino Kitzbühel was modernized. our twelve casinos across Austria throughout the year. Annual Report Casinos Austria 2016 5 6 Over the last 50 years, Casinos Austria has developed into a key company in Austria that provides gaming with great Recipe for 2016 responsibility. Responsibility in our case is a broad term that extends from responsible gaming and adherence Ingredients to the strict regulatory and socio-political parameters through to sponsoring and support for important projects • Gaming and entertainment of the highest level that benefit society. It is also reflected in our CSR strategy • 50 years of experience and our pioneering role with regard to compliance.
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