FACT BOOK 20 20 SAZKA GROUP AT A GLANCE Our Operations SAZKA Group (the “Group”) Our businesses are supported is one of the largest pan- by iconic and long-established European lottery operators. brands, unrivalled POS Our businesses operate networks and a long history lotteries in all the major of operations. 100% of our continental European gaming activities are regulated. countries where lotteries are They operate under long-term privately operated, including and, in many cases, exclusive the Czech Republic, Greece, licenses and concessions, Austria and Italy, and in which have allowed them to Cyprus. Our businesses focus enjoy leading and, in many on the lottery segment, cases, exclusive positions in all including numerical lotteries the markets in which they are (draw-based games) and present. instant lotteries (scratch cards), and also provide complementary products, including sports betting and digital-only games. They sell their products both through extensive retail networks and digital platforms. For the year ended CASAG and its subsidiary December 31, 2019, we Austrian Lotteries had a 100% estimate that SAZKA a.s. market share of GGR in lotteries, had a 94% market share of casinos, online lotteries and In the Czech Republic, GGR in numerical lotteries regulated online casino in SAZKA a.s. is the market and a 100% market share Austria as a result of its exclusive leader for both numerical in jackpot lotteries in license for these products. lotteries and instant the Czech Republic as a lotteries. result of SAZKA a.s. being According to H2 Gambling the sole provider of this Capital, 2020, LOTTOITALIA product. had an 80% market share of In Italy, we have a minority GGR in numerical lotteries and interest in LOTTOITALIA, OPAP had a 100% market a 100% market share in fixed- a joint venture which is the share of GGR in lotteries odds numerical lotteries in Italy exclusive operator of fixed in Greece as a result of its as a result of its exclusive license odds numerical lotteries. exclusive license. for this product. million+ players* In Greece, OPAP has exclusive licenses to operate lotteries, land- 79based sports betting, and VLTs. OPAP also has a license to operate lotteries in Cyprus. In Austria, we have minority interests in Casinos Austria (“CASAG”) and its subsidiary Austrian Lotteries, which are the exclusive operators of lotteries, land-based casinos and onshore *Note: Total addressable market in Austria, Cyprus, Czech Republic, Greece and Italy. Adult population only. online gaming. Source H2 Gambling Capital. OUR GROUP 100.0% #1 Lottery operator in the Czech Republic Lottery licence since 1956 11,400 POS 38.3% #1 Lottery and casino operator in Austria Exclusive lottery licence and operator of casinos Other gaming operations include sports betting, VLT and online gaming 5,100 POS 32.5% #1 Numerical lottery operator in Italy Exclusive licence for Lotto 33,600 POS ΛΟΓΟΤΥΠΑ ΟΠΑΠ * 41.7% #1 Lottery operator in Greece and Cyprus Exclusive lottery, land-based sports betting and video lottery terminal licenses *Not adjusted for treasury shares. All figures are as of the date of this 13,000 POS document. ΤΕΤΡΑΧΡΩΜΙΑ OUR HISTORY 2011–2012 2013 2015 Sazka a.s.: OPAP: Privatisation of CASAG: Acquisition of 33% stake in OPAP Acquisition of indirect a 100% stake 11.3% stake 2019 CASAG: Agreement with Novomatic reached to acquire its 17.2% shareholding in CASAG* 2015 2016 2017–2018 2019 Austrian Lotteries: CASAG: KKCG: KKCG and EMMA Acquisition of indirect Acquisition of additional Capital agreed on the split 11.6% stake stakes in CASAG, bringing of the assets in SAZKA total economic interest Group, and KKCG became LOTTOITALIA: to 38.3% the sole owner of Acquisition of SAZKA Group 32.5% stake (JV with Lottomatica) *Closing of this transaction remains subject to various conditions precedent including, without limitation, applicable 2019 regulatory approvals and notifications. The completion of the transaction is also subject to applicable pre-emptive OPAP: Acquisition rights of other CASAG shareholders, of additional as a result of which SAZKA Group may directly or indirectly acquire a lower 7.3% stake shareholding amount. in via a Voluntary Tender Offer OUR MANAGEMENT Board of Directors Robert Chvátal Member of the Board of Directors and Chief Executive Officer Mr Chvátal is a member of the board of directors of SAZKA Group and the Chief Executive Officer of SAZKA Group. He is also a member of the board of directors of individual companies that belong to SAZKA Karel Komárek Group, including OPAP and SAZKA a.s., of Chairman of the Board which he is also the Chief Executive Officer. He previously worked at Procter & Gamble and Reckitt Benckiser before moving to Mr Komárek is the Chairman of the T-Mobile as Chief Marketing Director. He was board of directors of SAZKA Group. later appointed as Chief Executive Officer of He has been involved with SAZKA T-Mobile Slovakia and T-Mobile Austria. He is Group since 2011 when KKCG, the also the first Vice President of the Association private investment group that he of European Lotteries. founded, became a major shareholder. He is also the chairman of the board of directors of companies forming part of the KKCG Group (including, Pavel Šaroch among others, KKCG AG, KKCG a.s., and MND a.s.). He is also the founder Member of the Board of the Proměny Foundation and the current co-chair of the Kennedy Center Mr Šaroch is a member of the International Committee on the Arts in board of directors of SAZKA Group Washington DC. and current CIO of KKCG Group. He is a member of the board of directors of KKCG AG, and of individual companies that belong to SAZKA Group, including OPAP and SAZKA a.s. where since December 2012 he has been chairman of Katarina Kohlmayer the board of directors. He served Member of the Board in management positions with securities trading firms such as Ms Kohlmayer is a member of the board Ballmaier & Schultz CZ and Prague of directors of SAZKA Group and current Securities. From 1999 to 2001, CFO of KKCG Group. She is in charge of he was a member of the board of KKCG Groupʼs capital markets and other directors of I.F.B. In 2001, he was financing activities, M&A, and accounting, appointed Deputy Chairman of the control and audit operations within the KKCG Supervisory Board of ATLANTIK FT Group. Prior to joining KKCG, she served as and subsequently became a Member managing director at Morgan Stanley and of the companyʼs board of directors. VTB Capital. During her professional career, she has specialized in M&A transactions and their financing in Central and Eastern European countries, Russia and CIS. Senior Management Kenneth Morton Štěpán Dlouhý Chief Financial Officer Chief Investment Officer Ken was appointed Chief Financial Štěpán Dlouhý joined SAZKA Group Officer as of February 1, 2020. as Chief Investment Officer in March Previously, he was the Head of 2016. He is also the investment director Corporate Finance of KKCG. Before at KKCG a.s., a role he has held since joining SAZKA Group, Ken worked 2013. Mr Dlouhý is also a member of the as an investment banker at Morgan supervisory board of Austrian Lotteries Stanley and Deutsche Bank in and was previously a member of the London, Moscow and Hong Kong, management board of LOTTOITALIA. and in corporate finance at Thames Prior to joining SAZKA Group, Mr Dlouhý Water. worked for Chayton Capital LLP and Deloitte Advisory s.r.o. Tony Khatskevich Ján Matuška Chief Technology Officer Chief Operating Officer Tony leads SAZKA Groupʼs Ján Matuška is responsible for the technology and innovation strategy organic development of SAZKA Group for SAZKA Groupʼs digital platforms operating companies, monitoring their and architecture to maximize the performance and ensuring best practice oprational success of the Group. exchange within the Group. He oversees Tony has extensive experience in and supports the implementation of Israel, US and Estonia heading up the SAZKA Group and operating companiesʼ technology and delivery organizations major strategic initiatives. Before joining in range of industries, including SAZKA Group, Ján worked as Principal for gaming, telecom, and information the global management consulting firm security. For the last six years before Kearney. joining SAZKA Group Tony served as the Vice President at Playtech, the worldʼs largest online gaming solutions supplier. Board members and Senior Management as of the date of publication of this Annual Review. In 2014, SAZKA a.s. launched OUR Eurojackpot in the Czech Republic. In 2014, OPAP launched sales of STRATEGY scratch cards in Greece. In 2017 OPAP launched its VLT product offering in Greece, which generated GGR of €298 million in 2019. In 2018, LOTTOITALIA launched MillionDay, a daily numerical lottery game aimed at younger players. At the end of 2018, OPAP acquired a stake in the Stoiximan business and strengthened its online sports betting offering. We are also evaluating the introduction of games which we have successfully introduced in some markets (for example, 1 multinational pooled jackpot products like EuroMillions and Introduce new products in Eurojackpot) where they are not existing markets and optimize currently offered. our current offerings, with lottery as a core product We see particularly attractive opportunities to expand online sales at our operations in Greece and Cyprus, where the online and mobile market accounts for a relatively low proportion of the gaming market compared to the Czech Republic. SAZKA a.s. launched online products in the Czech Republic in 2017 and currently offers all its games through online distribution channels. In 2019, OPAP launched the online version of one of its most popular games in Greece, Joker. We believe that our online activities are well placed to benefit from increasing regulation of online gaming by national regulators, a trend which favors onshore operators at the expense 2 of competitors offering online products from other jurisdictions who have historically benefited from regulatory and tax advantages.