Gaming Shall Be Enjoyed by All!

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Gaming Shall Be Enjoyed by All! Svenska Spel’s customer promise We are convinced that the best gaming experience is enter- Gaming shall taining, safe and secure. We are available on all modern plat- forms and our customer service is open and staffed 24-hours a day. We call this accessibility. With our broad range of unique games, we promise a SVENSKA SPEL be enjoyed moment of entertainment, dreams, thrills and the chance to win. Together with others, if you want. We call this gaming enjoyment. We will support you and give you the tools you need to ANNUAL REPORT 2015 by all! monitor your gaming behaviour. We put your questions and Svenska Spel’s vision your gaming security ahead of our own profits. We call this responsible gaming. SVENSKA SPEL ANNUAL REPORT 2015 Contents Svenska Spel on Instagram Business description and CSR report Svenska Spel, review of 2015 1 What? What? What does Svenska Spel do? About Svenska Spel 2 Read more on page 2. Why? Svenska Spel’s role in society 3 CEO’s commentary 4 Interview with the Chairman 7 The Swedish gaming market 8 How? Sustainable development 12 Stakeholder dialogue 12 Materiality analysis 14 Strategy – Gaming enjoyment based on responsibility 16 Why? The best and safest gaming experience 18 Why does Svenska Spel exist A customer-centric culture 28 and what is the Company’s mandate? Value for owners and society 32 Read more on pages 3–11. Comments on the CSR Report 38 GRI index 39 Governance of sustainability efforts 42 Key indicators for responsible gaming 43 Financial information and governance Directors’ report 44 Group’s financial position and results 47 Risks and risk management 50 Proposed distribution of profits 51 Report on the Company’s measures under the shareholder directive 53 How? Corporate Governance Report 57 Board of Directors 62 How does Svenska Spel work Management 64 to realise the vision “Gaming shall be enjoyed by all”? Group Consolidated statement of comprehensive income 66 Read more on pages 12–37. Balance sheet 67 Cash-flow statement 68 Statement of changes in equity 68 Parent Company Income statement 69 Balance sheet 70 Cash-flow statement 72 Statement of changes in equity 72 Svenska Spel-Telefonen gives insight into the lives of a few of Sweden’s greatest sports profiles and national teams. Notes 73 One week at a time, on Instagram. Follow us on Instagram.com/svenskaspel, #SvenskaSpelTelefonen. Board’s signatures 94 Auditor’s Report 95 Assurance Report 97 Five-year summary, the Group 98 Financial and other terms 99 Calendar and contacts 100 Solberg • Printing: Elanders Photo: Stefan Lundaahl, Videobrigade, Bildbyrån i Hässleholm, and others. REVIEW OF 2015 Svenska Spel, review of 2015 › Growth during the second half of the year, lower costs, improved › Sustainability a requirement in sponsorship agreements. performance and higher operating margin. Revenue from mobile New requirements for human rights, gender equality and diversity phones and tablet devices grew by 59%. have been identified together with sports. All of the associations that Svenska Spel collaborates with attended courses about human › Product and service launches. During the year, customers have rights in 2015. received access to Keno, Måltipset, Oddset Matchen and Poker via mobile phones. The online service for correcting the number › The subsidiary Playscan AB has merged with AB Svenska Spel. games, Eurojackpot, Lotto and Keno, has been developed to give customers a better gaming experience. › Strengthened responsible gaming with new features. During the year, our customers have been given access to the exclusion feature, Playscan, and complete gaming history. › Casino Cosmopol’s proactive responsible gaming dialogues resulted Percentage of Swedes between the in some 2,600 guests signing voluntary exclusion agreements. ages of 18 and 75 who have a positive view of Svenska Spel. › Continues to strengthen ties with sports. New sponsorship agree- ments have been signed with the Swedish Ice Hockey Association and HockeyAllsvenskan valued at SEK 171 million over a six-year period, and a three-year agreement with the Swedish Handball Federation valued at SEK 30 million. 62% Image SEK million 2015 2014 2013 Net profit for the year 4,803 4,763 5,268 Following the preceding year’s obligatory 22.6% Key indicators registration, the Company posted a recov- OPERATING MARGIN Customer satisfaction index (CSI) 69 72 62 ery in the autumn of 2015 and improved the operating margin. The customer satis- Image, % 62 61 62 faction index (CSI) was somewhat lower in Responsible gaming image, % 54 55 51 2015, while fluctuations in the other key Employee satisfaction index (ESI) 94 92 91 indicators were marginal. Operating margin, % 22.6 22.2 22.6 New site offers several new features Svenska Spel launched a new gaming site in 2015. The site is respon- sive, which means that it functions equally well on mobile phones and tablet devices, and has clearer navigation with easier menus and smart shortcuts. The biggest news for sports games involves real-time sport and gaming information – before, during and after the matches – as well as “live correction”. The biggest news for games of chance involves a completely new experience in regard to correcting Lotto, Keno and Eurojackpot. Customers can now correct their lines while watching number after number roll down. The new gaming site makes it easier for customers to monitor their gaming by, among other options, easily setting limits and a budget and getting a clearer overview of their gaming history. SVENSKASVENSKA SPEL SPEL ANNUAL ANNUAL REPORT REPORT 2015 2015 1 1 WHAT? VALUES, MISSION AND CUSTOMER PROMISE About Svenska Spel What does Svenska Spel do? Svenska Spel offers a broad range of games in several different channels, with the ambition of providing the customer with a good and responsible gaming experience. Svenska Spel’s history and the Company’s values are the foundation of its operations. The mission and customer promise summarises the customer offering. SVENSKA SPEL IN BRIEF MISSION Svenska Spel was founded in 1997 following the merger of Svenska Spel is to offer a competitive range of exciting and AB Tiptjänst and Penninglotteriet. The subsidiary Casino entertaining gaming experiences in a responsible and secure Cosmopol started operations in 2001. Today, the Group has manner. 1,655 employees, of whom 675 are employed in the Parent Company. The head office is located in Visby, but the Com- SVENSKA SPEL’S CUSTOMER PROMISE pany also has offices in newly built premises in Solna near We are convinced that the best gaming experience is enter- Friends Arena. taining, safe and secure. We are available on all modern plat- Svenska Spel has products in the categories games of forms and our customer service is open and staffed 24-hours chance, sports games and casino. Lotto, Triss, Stryktipset and a day. We call this accessibility. Oddset rank among the Company’s well-known brands. Via a With our broad range of unique games, we promise a new digital platform, customers are offered a broad range of moment of entertainment, dreams, thrills and the chance to games and services on mobile phones, computers and tablet win. Together with others, if you want. We call this gaming devices. You will find the Company’s Vegas Video Lottery enjoyment. Terminals (VLTs) at restaurants and bingo halls throughout the We support our customers and give them the tools to country. Svenska Spel has a widespread distribution network monitor their gaming behaviour. We prioritise customer ques- of retailers and partners in both cities and rural areas that sell tions and gaming security. We call this responsible gaming. Svenska Spel’s products. The Company has four international casinos that are located in Stockholm, Gothenburg, Malmö and Sundsvall that provide classic casino games such as Roulette, Black Jack and Poker. GAMES OF CHANCE SPORTS GAMES CASINO GAMES 54% 18% 28% OF NET GAMING OF NET GAMING OF NET GAMING REVENUES REVENUES REVENUES 2 SVENSKA SPEL ANNUAL REPORT 2015 WHY? SVENSKA SPEL’S ROLE IN SOCIETY Svenska Spel’s role in society Why does Svenska Spel exist and what is the Svenska Spel’s vision is that “Gaming shall be enjoyed Company’s mandate? by all”. Gaming should add a sense of excitement and cohesion in our daily lives and fun gaming should always be in moderation. Profits are given back to society. Svenska Spel’s mandate is both about safeguarding social it is a question of moving (channelling) the gaming that protection considerations and satisfying demand for attrac- already takes place to a healthier and more secure gaming tive gaming in controlled forms – in other words, promoting a environment and not increasing total gaming in society. healthy and safe gaming market. Consideration for customers In order to accomplish its channelling mandate, Svenska and minimising the negative effects of gaming always weigh Spel is to offer the games in demand by customers. While the more heavily than profits. Svenska Spel is tasked with con- customers put a premium on responsibility, it is the gaming ducting responsible, sustainable and efficient operations. The experience they want foremost. By offering a more advanced surplus from operations is delivered to the owner, the State. customer experience in a secure and safe gaming environ- A key component of Svenska Spel’s mandate relates to ment, and by offering the option of gaming enjoyment based channelling. This means that Svenska Spel is to offer forms on responsibility, Svenska Spel will realise its vision – “Gaming of gaming that can entail social risks if deemed to reduce shall be enjoyed by all!” gambling problems or stop illegal gambling. In other words, SVENSKA SPEL ANNUAL REPORT 2015 3 CEO’S COMMENTARY A healthy gaming market gains ground! For Svenska Spel, 2015 was confirmation that our overriding strategy of “Gaming enjoyment based on responsibility” is right and keeps us competitive.
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