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Annual Report and Social Report

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Annual Report and Social Report ENAR SRFR Annual Report and Social Report 2016 80 ans Société de la Loterie de la Suisse Romande 14, avenue de Provence Case postale 6744 • CH-1002 Lausanne Tél. + 41 21 348 13 13 • Fax + 41 21 348 13 14 [email protected] • www.loro.ch #AvecLoRo – follow us on: AR SR Contents Annual Report 2016 Social Report 2016 2 35 Mission and values Foreword 3 36 Snapshot Priorities 5 38 The Chairman’s message Community 6 40 Interview with the CEO Responsible Gaming on the 2016 business year 43 8 Human Resources Governance 46 12 Environment 2016 results 14 Results by type of game 16 Sales network 18 What’s new? 20 Interview with the CEO about the challenges ahead 22 Stakeholders 24 Certification 26 Working for the public good 29 Beneficiaries 1 Mission and values Company with a public-service mission Mission Values Since it was founded in 1937 with its objective to work for Loterie Romande is also committed to furthering and sharing the public good, Loterie Romande has been organising and its core fundamental values. These are formally laid down operating lottery games and sports betting in the six cantons in the company’s corporate charter compiled on several of French-speaking Switzerland. It distributes 100% of its support media. All employees are actively involved in putting profits to non-profit-making bodies and organisations active this charter into practice. in a broad spectrum of fields, such as social welfare, culture, Trust and credibility: sport, education and the environment. Management and members of staff act as guarantors of the With its business model that is unique worldwide, Loterie integrity, reliability and credibility of the games intended to Romande runs its business operations ethically and judi- inspire dreams and provide fun. ciously. Efforts to prevent and combat addictive gambling Responsibility and transparency: form a wholly integral part of its corporate strategy. The company’s business operations undertaken for the common good demand services of an exemplary standard and permanent commitment to serve the general public. Innovation and creativity: TRUST Inventiveness is the cornerstone of the creative process CREDIBILITY for games that are to be relevant, geared to the future and TRANSPARENCYRESPONSIBILITY socially responsible. Loyalty and respect: The principles of fairness, overall ethical conduct and an acute sense of responsibilities are driving forces for both the company and each member of staff. COOPERATIONSHARING Commitment and reciprocity: Members of staff work in a stimulating and enriching envi- ronment, enabling them to channel their enthusiasm and COMMITMENT dynamism towards fulfilling the company’s goals. RECIPROCITY Cooperation and sharing: Exchanges of views, dialogue and teamwork with all stake- holders are vital for the company in pursuit of its objectives. INNOVATION CREATIVITY LOYALTY RESPECT 2 Loterie Romande Annual Report 2016 Snapshot AR SR Key facts & figures Results Sales network Responsible Gaming Human resources and partners Gross gaming Number of points Contribution Staff revenues (GGR) of sale towards research and prevention CHF (0.5% of GGR) 282 2,600 including: TARGET: CHF 398 52 mobile sales vendors Adapt distribution channels million 10 undergoing training to evolve with consumers’ 5 being re-integrated habits and tastes. 1.99 + 5.7 % million into the workplace 2014 2015 2016 TARGET: 2,650 2,650 2,600 TARGET: TARGET: Be an exemplary and reliable Grow GGR within the framework Pursue the company’s influential of the company’s Responsible role as a driving force in the field employer providing staff with Gaming policy. of research and prevention. motivation and training. 2014 2015 2016 2014 2015 2016 2014 2015 2016 280 282 282 388 377 398 1.94 1.88 1.99 (in CHF million) Commission fees (in CHF million) paid to retailers CHF Net profit disbursed 74.5 Number of for the public good million withdrawals and official warnings CHF TARGET: Make a significant issued to retailers contribution to the turnover 216.8 of neighbourhood businesses. million 2014 2015 2016 16 Taking the population +3.4 % 71.9 70.5 74.5 TARGET: of French-speaking (in CHF million) Continue stringent supervision of Loterie électronique sales outlets Switzerland as a whole... TARGET: and visits by ‘Mystery Shoppers’. Pursue Loterie Romande’s mission to work for the common 2014 2015 2016 good by disbursing 100% of its 23 10 16 net profit for community associations and bodies in French-speaking Switzerland. 64% 2014 2015 2016 play Loterie Romande’s 209.9 209.5 216.8 games (in CHF million) Number of retailers/ employees who undertook annual compulsory training courses 75% regard Loterie Romande 385 as a friendly organisation TARGET: Enable all retailers and their employees to possess core knowledge and skills for preventing and combat ing addictive gambling. 2014 2015 2016 84% 372 367 385 deem it to be trustworthy Source : survey Baroloro 2016 3 4 Loterie Romande Annual Report 2016 The Chairman’s message AR SR 1937 – 2017 Loterie Romande is celebrating its 80th birthday! 1937-2017 – Apart from rejoicing that Loterie Romande has All this will also keep the 26 cantonal executives and assem- reached such a ripe, old age, we should also be celebrating blies very busy, as, in their turn, they will need to update and the success of a remarkable concept: operating a lottery amend their own laws on gambling. At an intercantonal level, company that is a guarantor of the probity and security of a new convention will have to adapt and bring into force the games it offers the public; disbursing its profits in their regulatory and supervisory bodies for lottery companies. entirety for the public good or benevolent causes, as they This new convention will, however, have to abide by the used to be known; bringing together as one in this project the Convention in force in French-speaking Switzerland since five French-speaking cantons of that time, joined by the 1937 that has regulated and protected Loterie Romande as newly formed Jura in 1979. The ingredients of this success an organisation which, over the decades, has become a have been unmistakably identified. figurehead institution and principal benefactor in the half- dozen cantons of Western Switzerland. That is not to say those eight decades of Loterie Romande’s existence have been all smooth sailing in untroubled waters. In this new institutional landscape, Loterie Romande’s long- Our Loterie Romande, faced with constant onslaught from term survival should be safeguarded even though the battles those wanting to run gambling businesses for their own that it has been waging since its inception are likely, in future, financial ends and battling against bureaucrats always to take on different and new forms. No longer able to launch seemingly looking to place obstacles to impede this impres- attacks on its very existence, its opponents and detractors sively successful enterprise in French-speaking Switzerland, are likely to turn towards seeking to apply curbs and brakes has been waging a never-ending fight against assailants – to its operations. sometimes openly hostile, sometimes more surreptitious – to To safeguard its future, Loterie Romande will need to draw safeguard both its future and its uniqueness. on all the talents, abilities and determination of its loyal Happily, as a result of the outcome of a popular referendum supporters, corporate bodies and the public in general. initiative inspired by its own promptings, the cornerstone principles underpinning Loterie Romande have now been Jean-Pierre Beuret em­­bedded in Article 106 of Switzerland’s Federal Consti- Loterie Romande’s Chairman tution. This Article forms the bedrock for the new Federal Gam­­bling Act currently going through the Federal Parliament. The Act itself will be followed by implementing ordinances for the new legislation. Without doubt, these will have a major impact on the business of lottery companies working for the good of the whole community. 5 Interview with the CEO on the 2016 business year Jean-Luc Moner-Banet gives his comments on the operating results Gross gaming revenues (GGR) posted an increase The “Millionnaires” scratch-card, launched at the end of the in 2016. What would you like to say about that? year in the form of an advent calendar, surprised us by how successful it turned out to be. There is no denying that The 5.7% rise in GGR has to be placed within the context of scratch-cards remain very popular, year in, year out, with the some quite extraordinary events during the course of 2016. playing public. They made a handsome contribution towards First, the new format of Euro Millions was launched. Second, making 2016 a vintage year. the special end-of-year “Millionnaires” scratch-card met with resounding success. But, topping both those, we saw in December 2016 the record jackpot on Swiss Loto totalling CHF 70 million up for grabs. All in all, our games right across In this “phygital” age, where the physical is being the board, including horse-race and sports betting, fared blended with the digital, are we heading for sales outlets well. It should also be remembered that, owing to the random becoming increasingly modern and connected? nature of the calendar, 2016 happened to have an extra After initially being seduced in the early 2000s by siren business week in it. All these factors combined helped Loterie chants predicting the imminent demise of the bricks-and- Romande to enjoy a record year, with GGR coming close to mortar network eclipsed by the Internet, operators in the hitting the heights of CHF 400 million. If, however, we step lottery industry have reverted to a rather more sensible back a little to take a longer, broader view of things, we see stance. Undoubtedly, interactive channels – the Internet, that, over the last decade or so, Loterie Romande has been smartphones and tablets – will continue to expand and, recording very slow growth or even flat revenues.
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