March 2017 | Public | Final | Page 1 of 13
FY 2016 Financial Results Presentation
March 30th, 2017
March 2017 | Public | Final | Page 2 of 13
Segmental Analysis
FY 2016 FY 2015
Management
Contracts
8.8%
Technology
16.1%
Management
Contracts
8.0%
Technology
15.9%
Licensed Operations
75.1%
Licensed Operations
76.1%
Sales Breakdown per Contract Type
FY 2016 Revenue per Product Type FY2016 Wagers Handled1 per Region
Racing % of
total 2.6%
Sports Betting
% of total
41.6%
Video lottery
Terminals %
of total 3.0% Lottery games
% of total
41.9%
IT products &
services % of
total 10.9% East Europe
3,453
West Europe
5,304
North America
6,184 South America
987
Asia
7,236
Africa
274
1 Wagers handled from continuing operations
€23.4bn wagers handled
March 2017 | Public | Final | Page 3 of 13
FY16 Results
% %Change Change
Revenues (Turnover) 1,323.6 1,235.5 7.1% 366.1 340.5 7.5%
Gross Profit 233.1 233.7 -0.3% 64.8 65.5 -1.1%
EBITDA 175.8 164.9 6.6% 51.6 43.5 18.6%
EBITDA Margin (%) 13.3% 13.3% 0.0pps 14.1% 12.8% +1.3pps
EBT 4.8 47.9 -90.1% -14.2 16.1 -
EBT Margin (%) 0.4% 3.9% -3.5pps -3.9% 4.7% -8.6pps
NIATMI 0.9 -65.1 - -0.9 -14.7 -
(in € million) FY16 4Q16
Consolidated Financial Statements For The 12 Months
Ended December 31st, 2016
FY15 4Q15
March 2017 | Public | Final | Page 4 of 13
Key takeaways
“The strongly positive results of 2016 in both growth and profitability
reflect important transformations that have taken place over the past
couple of years across operational capabilities, project
management, cost structure, and Products and Services portfolio
investments. A series of M&A transactions greatly enhanced our
business development potential through strong local partnerships
and diversified portfolio offering. The past year was also marked by
tremendous improvements in INTRALOT’s financial structure in a
way that secures future savings and a clear funding horizon until
2021 while affirming international investors’ confidence in future
value creation.”
Antonios Kerastaris, Group CEO
Healthy revenue growth both in FY16 and 4Q16 (+7.1% and
+7.5% respectively, compared to the same prior year period)
Increased sales in Bulgaria, Turkey and North America more
than counterbalanced decreased sales in Azerbaijan and South
America (Argentina, Jamaica and Brazil)
EBITDA in the twelve-month period grew by 6.6%, whereas
4Q16 EBITDA increased by 18.6%
On a yearly basis, EBITDA margin, from continuing operations,
remained steady at 13.3%, showcasing operating profitability
resilience as the Group fully absorbed a payout ratio increase of
3.5pps
Operating Cash-flow increased significantly in FY16 at €168.1m
vs. €113.8m in FY15. The growth is mainly attributed to WC
improvement (+€46.8m vs. FY2015) both due to efficient
management and WC normalization
Key metrics (€mm)
Note: FY and 4Q results do not include discontinued operations in Italy, Peru and Russia
1 Purchases of tangible and intangible assets less proceeds from sales of tangible and intangible assets
FY16 and Quarterly Performance
Revenues
EBITDA
Operating cash flow
Net capex1
1,235 1,324
341 366
12M15 12M16 4Q15 4Q16
165 176
44 52
12M15 12M16 4Q15 4Q16
13.3% 14.1% 13.3% 12.8%
114
168
12M15 12M16
69
63
12M15 12M16
+7.1%
+7.5%
Margin:
+18.6%
March 2017 | Public | Final | Page 5 of 13
Revenues
1,539
1,853 1,915
1,235 1,324
2013A 2014A 2015A 2015A 2016A
Operating cash flow and capex
139 153
114
168
58 67 71 65
2013A 2014A 2015A 2016A
Operating cash flow Capex
€m
EBITDA and EBITDA margin
195 175 177 165 176
12.7%
9.5% 9.3%
13.3% 13.3%
2013A 2014A 2015A 2015A 2016A
EBITDA EBITDA margin
Net debt2 and Net debt / EBITDA3
403 381 478 495
2.1x 2.2x
2.9x 2.8x
2013A 2014A 2015A 2016A
Net debt Net debt / EBITDA
€m
1 12M15 & 12M6 results do not include discontinued operations in Italy, Peru and Russia 2 Net debt calculated as Long-term debt plus Short-term debt and current portion of long-term debt plus Financial Leases less Cash and cash equivalents 3 Calculated as Net debt divided by LTM EBITDA
€m €m
1 1 1 1
Overview of Key Financial Metrics
+7.1%
+11.5%
March 2017 | Public | Final | Page 6 of 13
(in € million) FY16 FY15% or pp
change4Q16 4Q15
% or pp
change
Revenues 1,323.6 1,235.5 7.1% 366.1 340.5 7.5%
Technology, Management & Rest Contracts 408.4 369.9 10.4% 107.3 104.8 2.4%
Licensed Operations (Payout related) 915.2 865.6 5.7% 258.8 235.7 9.8%
Payout (%) 70.2% 66.7% 3.5pps 71.3% 68.5% 2.8pps
GGR 681.5 658.4 3.5% 181.7 179.0 1.5%
GGR (% Revenue) 51.5% 53.3% -1.8pps 49.6% 52.6% -3.0pps
nGGR 524.9 508.5 3.2% 138.7 139.3 -0.4%
nGGR (% GGR) 77.0% 77.2% -0.2pps 76.4% 77.8% -1.4pps
EBITDA 175.8 164.9 6.6% 51.6 43.5 18.6%
EBITDA (% GGR) 25.8% 25.0% 0.8pps 28.4% 24.3% 4.1pps
Consolidated Financial Statements For The 12 Months
Ended December 31st, 2016
FY16 Management Results
The Group demonstrated a healthy EBITDA growth and operating profitability resilience
as the Group fully absorbed a payout ratio increase of 3.5pps
March 2017 | Public | Final | Page 7 of 13
Net Debt Movement
Adjusting for all major extraordinary items, the Net Debt increase in 2016 is €10.0m
19
9
22
5
10
478
495
Net Debt, 2015 Net M&As Temporarily RestrictedCash
Refinancing Positive WC Normal Course ofBusiness
Net Debt, 2016
c.€15.5m in call premium and
double interest
c.€6.5m in fees paid in 2016 with
the remaining part to be settled
within 2017
c.€54m Peru net proceeds
c.€-33m Italian asset transaction (including
temporarily restricted cash)
c.€-11m Eurobet PP instalments
Overall M&A effect
March 2017 | Public | Final | Page 8 of 13
Partnerships’ Contribution Country INTRALOT stake Contract type
9M16 EBITDA
Contribution
FY16 EBITDA
Contribution
Turkey
(Inteltek) 45.00% Management contract 17% 16%
Turkey
(Bilyoner) 50.01% Management contract 6% 7%
Bulgaria
(Eurofootball
Group)
49.00% + option for
additional 2.00% Licensed operation 14% 13%
Bulgaria
(Eurobet
Group)
49.00% + option for
additional 2.00% Licensed operation 1% 1%
Azerbaijan 22.95% Licensed operation 8% 9%
Jamaica 24.97% Licensed operation 8% 8%
Argentina 50.01% 10 facilities management (IT) contracts with
state lottery operators & 1 licensed operation 9% 9%
Total 63% 63%
March 2017 | Public | Final | Page 9 of 13
Appendix Summary Financial Statements
March 2017 | Public | Final | Page 10 of 13
FY16 – Group Income Statement
(in € million) FY16 FY15%
change
Revenues 1,323.6 1,235.5 7.1%
Gross Profit 233.1 233.7 -0.3%
Other Operating Income 33.1 23.1 43.3%
OPEX -158.3 -157.5 0.5%
EBITDA 175.8 164.9 6.6%
margin 13.3% 13.3%
EBIT 107.9 99.3 8.7%
Interest expense (net) -75.7 -49.9 51.7%
Exchange differences 3.1 3.5 -11.4%
Other -30.5 -5.0 510.0%
EBT 4.8 47.9 -90.1%
NIATMI 0.9 -65.1 -
NIATMI continuing -71.7 -41.7 71.9%
NIATMI discontinuing 72.6 -23.4 -
Consolidated Financial Statements For The 12 Months
Ended December 31st, 2016
March 2017 | Public | Final | Page 11 of 13
FY16 – Group Statement of Financial Position
(in € million) 12/31/2016 12/31/2015
Tangible Assets 133.0 172.3
Intangible Assets 329.6 328.8
Other Non-Current Assets 231.9 146.3
Inventories 32.2 42.5
Trade receivables 84.8 123.1
Other Current Assets 249.6 356.3
TOTAL ASSETS 1,061.1 1,169.3
Share Capital 47.7 47.7
Other Equity Elements 79.9 81.9
Non-Controlling Interests 68.9 77.8
Total Shareholders Equity 196.5 207.4
Long-term Debt 644.6 718.1
Provisions/ Other Long term Liabilities 49.6 48.8
Short-term Debt 14.7 36.2
Other Short-term Liabilities 155.7 158.8
Total Liabilities 864.6 961.9
TOTAL EQUITY AND LIABILITIES 1,061.1 1,169.3
March 2017 | Public | Final | Page 12 of 13
FY16 – Group Cash Flow (in € million) FY16 FY15
EBT from continuing operations 4.8 47.9
EBT from discontinuing operations 84.5 -22.2
Plus/less Adjustments 100.2 158.3
Decrease/(increase) of Inventories 2.8 1.2
Decrease/(increase) of Receivable Accounts -9.2 -19.3
(Decrease)/increase of Payable Accounts 11.2 -23.9
Income Tax Paid -26.2 -28.2
Net Cash from Operating Activities 168.1 113.8
CAPEX -65.4 -70.8
(Purchases) / Sales of subsidiaries & other investments 7.1 -3.2
Interest received 7.7 12.3
Dividends received 1.0 1.9
Net Cash from Investing Activities -49.6 -59.8
Subsidiary share capital return -3.3 0.0
Repurchase of own shares -1.2 0.0
Cash inflows from loans 303.8 61.4
Repayment of loans -388.4 -58.7
Bond buy-backs -3.7 -40.9
Repayment of Leasing Obligations -6.8 -11.5
Interest and similar charges paid -83.5 -64.9
Dividends paid -42.2 -67.7
Net Cash from Financing Activities -225.3 -182.3
Net increase / (decrease) in cash for the period -106.8 -128.3
Exchange differences -5.4 -12.0
Cash at the beginning of the period 276.6 416.9
Cash at the end of the period from total operations 164.4 276.6
March 2017 | Public | Final | Page 13 of 13
.A GLOBAL LEADER . YOUR LOCAL PARTNER