Annual Report 2015 Overview of Key Figures
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Annual Report 2015 Overview of Key Figures Sales Revenues in Million Euro 2,086 1,978 1,684 2015 2014 2013 Employees Employees at year end 20,188 18,293 16,022 2015 2014 2013 Consolidated Profit & Loss Statement in Million Euro 2015 2014 2013 Revenues 2,086.3 1,977.6 1,684.1 EBITDA 616.7 647.4 480.0 EBITDA margin (EBITDA/sales) in percent 29.6 % 32,7 % 28,5 % Earnings before interest and taxes (EBIT) 325.4 363.3 174.8 EBIT margin (EBIT/sales) in percent 15.6 % 18.4 % 10.4 % Earnings before taxes 318.5 368.4 105.9 Consolidated annual profit after taxes 220.7 276.9 55.1 Consolidated Balance Sheet in Million Euro 2015 2014 2013 Balance Sheet Total 2,997.2 2,634.4 2,361.4 Equity 1,224.9 1,174.3 952.4 Equity ratio (equity capital/total assets) in percent 40.9 % 44.6 % 40.3 % Source: Consolidated Financial Statement as of 12/31/2014 and 12/31/2015 as per IFRS Organizational Chart NOVOMATIC Group ACE Casino Holding AG NOVO Invest GmbH Gryphon Invest AG (Switzerland, 100 %) casino operator (Austria, 100 %) (Switzerland, 100 %) Casino Mendrisio (100 %) NOVOMATIC AG Group European Data Project s.r.o. (EDP) Casino Locarno (91 %) (Czech Republic, 100 %) Casino Bad Ragaz (33,3 %) NOVOMATIC AG production operations, casino and (Austria, 92 % directly and gaming machine operations 8 % indirectly by Gryphon Invest AG) Holding Austrian Gaming Industries GmbH ATSI S.A. Advanced (Austria, 100 %) casino and gaming facility Technology Systems operator, R&D, production, rental and sales International ADMIRAL Casinos & Entertainment AG (Poland, 81 %) (Austria, 100 %) gaming facility operator technology center ADMIRAL Sportwetten GmbH (Austria, 100 %) sports betting provider Österreichische Lotterien GmbH (Austria, 23.1 %) lottery operator Greentube Internet Entertainment Solutions GmbH (Austria, 100 %) gaming solutions developer for the Internet, mobile devices and iTV LÖWEN Entertainment GmbH (Germany, 100 %) gaming facility operator, R&D, production, rental and sales Crown Technologies GmbH (Germany, 100 %) R&D, production, rental and sales Extra Games Entertainment GmbH (Germany, 100 %) gaming facility operator Spielbank Berlin Gustav Jaenecke GmbH & Co. KG (Germany, 92.04 %) casino operator NOVOMATIC Italia S.p.A. (Italy, 100 %) holding, rental Allstar S.r.I. (Italy, 100 %) gaming facility operator Astra Games Ltd. (Great Britain, 100 %) R&D, production, sales Bell-Fruit Group Ltd. (Great Britain, 100 %) producer Gamestec Leisure Ltd. (Great Britain, 100 %) rental Luxury Leisure Ultd. (Great Britain, 100 %) gaming facility operator Playnation Ltd. (Great Britain, 100 %) entertainment solutions operator Alfor SIA (Latvia, 60 %) gaming facility operator NOVO Gaming Netherlands B.V. (Netherlands, 100 %) production, rental and sales NOVOMATIC Gaming Spain S.A. NOVOMATIC AG Group (Spain, 100 %) holding, sales NOVOMATIC Group The NOVOMATIC AG Group is The NOVOMATIC Group includes GiGames S.L. a part of the NOVOMATIC Group NOVO Invest GmbH, the (Spain, 80%) production, sales and includes the main subsidiaries NOVOMATIC AG Group, as well listed here. In addition to this, the NOVOMATIC Lottery Solutions GmbH as the two Swiss sister holding NOVOMATIC AG Group is active in (Austria, 100 %) developer of gaming platforms and electronic lottery companies ACE Casino Holding AG England, Germany, Italy, Spain, solutions and lottery terminals, production, sales and Gryphon Invest AG, EDP s.r.o. Latin America and Africa, as well and ATSI S.A., which are owned NOVOMATIC Americas Holdings Inc. as other CEE and SEE countries by Prof. Johann F. Graf. (USA, 100 %) sales through subsidiaries. Contents INTRODUCTION Organizational chart of the NOVOMATIC Group 2 Overview of the NOVOMATIC Group 2015 4 NOVOMATIC Group – Highlights 2015 6 NOVOMATIC Global Operations 8 Growing Success Starts Here 10 Foreword by the Founder & Majority Shareholder 12 Foreword by the Board of Directors 14 THE WORLD 16 OF NOVOMATIC Regulatory Environment 20 Research & Development 22 Gaming Machines 24 Online, Mobile and Social Gaming 26 Operations 29 Sports Betting 32 Lottery 34 Corporate Responsibility 36 CONSOLIDATED 38 FINANCIAL STATEMENTS Management Report on the Individual and Consolidated Financial Statements 40 Consolidated Balance Sheet 72 Consolidated Profit and Loss Statement 73 Consolidated Statement of Comprehensive Income 73 Consolidated Cash Flow Statement 74 Consolidated Statement of Changes in Equity 75 Notes to the Consolidated Financial Statements 76 Statement by the Board of Directors 147 Auditor’s Report 148 INDIVIDUAL FINANCIAL 150 STATEMENT Balance Sheet 152 Profit and Loss Statement 154 Notes to the Individual Financial Statement 156 Auditor‘s Report 170 Report of the Supervisory Board 172 Imprint 176 In order to improve readability, some terminology is used only in its masculine form. Nevertheless, all passages refer equally to members of both genders. Overview of the NOVOMATIC Group 2015 In its relatively short 35-year history, the NOVOMATIC Group with its more than 24,000 employees worldwide has become one of the top players in the gaming industry and the clear number one in Europe. 120,000 m2 9,000 km Surface area of Cables produced Gumpoldskirchen HQ 23 million Register customers > 3,300 Employees in Austria 6.5 h Assembly time per gaming terminal > 300,000 Programming hours per year 3,660 Registered IP trademark rights > € 3.9 billion > 24,000 Revenues Employees worldwide 235,000 Gaming terminals in operation 250 13 Individual parts per Production locations gaming device in 10 countries 21 Technology centers in 13 countries 98 % Export Rate 55 m Cables per 4,300 m2 gaming terminal Surface area of joinery NOVOMATIC Group Highlights 2015 NOVOMATIC looks back at the best financial year in its 35-year history. As a globally operating full-service provider with operations in all important gaming markets, the Group covers all segments of the gaming industry. 10 February and 11 March NOVOMATIC‘s subsidiary Greentube acquires AbZorba Games as well as a majority stake in BlueBat Games AbZorba Games is a specialist of social casino gaming apps, perfectly complementing NOVOMATIC‘s interactive gaming portfolio. BlueBat Games had already previously contributed significantly to the development of the social marketing platform Greentube Pro. January NOVOMATIC UK: New identity and new headquarters In early 2015, NOVOMATIC‘s British subsidiary “Astra Gaming Group” changed its name to NOVOMATIC UK. The company also moved to new headquarters in London. 3 through 5 February The best ICE (International Casino Exhibition) Totally Gaming For NOVOMATIC, ICE Totally Gaming 2015 in London marked the company‘s most successful trade fair appearance, recording the most visitors ever at its 4,500 m² stand. 24 September NOVOMATIC UK acquires Playnation Playnation‘s portfolio perfectly complements the NOVOMATIC Group and plays a key role in its strategy within the British gaming entertainment industry. August New headquarters and new developments for NOVOMATIC AMERICAS The new headquarters in Mount Prospect close to Chicago are inaugurated in August. 12 September 40th anniversary of Spielbank Berlin The casino in Berlin celebrated its anniversary with a gala dinner. The celebrity guests included Olympic champion Robert Harting, musician Frank Zander and Niki Lauda. 3 September NOVOMATIC celebrates its 25th anniversary in Romania The NOVOMATIC Group operates approximately 1,900 gaming terminals through its subsidiaries and is the market leader in operations. NOVOMATIC Global Operations NOVOMATIC activities NOVOMATIC competence centers NOVOMATIC Headquarters Gumpoldskirchen CZ DE SK AT Gumpoldskirchen H IT SLO Growing Success Starts Here During the past ten years, the NOVOMATIC Group has increased the number of its employees on all continents almost sevenfold. ESTABLISHMENT Founded by Professor Johann F. Graf, Austria 1980 INTERACTIVE REVOLUTION First NOVOMATIC dual screen terminals 1985 revolutionize the market MARKET ENTRY Central, Eastern and Southern Europe 1989 ESTABLISHMENT of the sports betting company ADMIRAL 1991 Sportwetten GmbH, Austria ACQUISITION LÖWEN Entertainment GmbH, Germany gaming terminal manufacturer 2003 ACQUISITION of the majority share in Astra Games Ltd., 2004 Great Britain INAUGURATION CASINO ADMIRAL PRATER, Austria 2005 REVOLUTION LÖWEN Entertainment GmbH revolutionizes 2006 the German gaming market with its new multigame concept NOVOLINE ACQUISITIONS BlueBat Games Inc., Canada AbZorba LLC, USA Casino Tornado, Lithuania (5th casino) Electronic System S.p.A., Italy Österreichische Lotterien GmbH, Austria Playnation Ltd., United Kingdom MARKET ENTRY 2015 Madrid (operations), Catalonia (lottery) Niki Lauda becomes NOVOMATIC brand ambassador CORPORATE CREDIT RATING BOND S&P assigns NOVOMATIC AG an Corporate bond with investment grade rating of BBB a volume of EUR 200 million, Austria and a stable outlook INAUGURATION Hotel Casino FlaminGO, Macedonia PROMISSORY NOTE BONDS with a volume of EUR 275 million, ACQUISITIONS Austria Luxury Leisure Ultd., Great Britain, Scotland 2014 GiGames S.L., Spain BONDS Elam Group Electronic Amusement B.V., Corporate bond with a Netherlands volume of EUR 250 million, Austria MARKET ENTRY MARKET ENTRY Israel, Illinois, Costa Rica, Honduras, Guatemala Netherlands, Romania (with VLTs) 2013 Eurocoin Gaming B.V., JVH exploitatie, Netherlands ACQUISITION Betware Holding hf., Iceland Substantial assets of the Danoptra development and sale of state-of-the-art gaming Gaming Group (Bell-Fruit Group and platforms and electronic lottery solutions Gamestec