SAZKA_EN_NEW_krat.qxd:Sestava 1

Transcription

Annual Report 2009
Boats in Marsaxlok Harbour
We are a traditional Czech company operating in the field
of gambling, lotteries and non-lottery services. We have
been providing customers with fun, excitement and lucrative
prizes for more than fifty years. We are a company owned
solely by civic associations active in physical education
and sport. Living up to our motto of “Helping Others
Win!”, we use the proceeds from our gaming and lottery
operations to support good causes, primarily in sport and
physical education, but also in charity, culture, art,
education and health. We are a company that supports the
national and international principles of responsible gaming
and ethical principles in the gambling and lottery industry.
Helping others win!
Clouds over Monte Adone
Ivan Exner
Ivan Exner, born in 1960 in Pardubice,
studied at his local secondary technical
college of graphic art before graduating
from the Academy of Fine Arts in Prague
under the tutelage of Professor František
Jiroudek. Besides painting, he specializes
in freestyle graphics, typography and
design. He has taken part in numerous
solo and group exhibitions at home and
abroad, and his work features in many
collections worldwide. Ivan Exner is a
member of the Mánes Society of Artists.
Contents of
the SAZKA, a.s.
Annual Report 2009
SAZKA, a.s. Financial Summary 5
Statement by the Chairman of the Board of Directors and Chief Executive Officer
Corporate Profile 9
Brief Company History 11
Main Events of 2009 and the First Quarter of 2010 13
Accolades 16
Corporate Governance 17
Ownership Structure 23
Capital Interests 26
6
Board of Directors Report 31
Fulfilment of Strategic Goals in 2009 31
Remarks on the Financial Results 34
Good Causes 35
Support of Responsible Gaming 37
Market Position 38
Marketing Strategy in 2009 40
Company Lottery Products 41
Revenues in 2009 43
Winnings in 2009 44
Services for Winners 45
Sales Policy 46
Points of Sale 46
Work with Agents 48
Sales Support 49
Non-Lottery Activities 49
Publicity and Advertising Strategy 52
Public Relations 53
Human Resources 57
International Standing 60
Outlook for 2010 61
SAZKA, a.s. Supervisory Board Report for 2009
63
The Independent Auditor’s Report to the Shareholders of SAZKA, a.s.
Consolidated Financial Statements Prepared under IFRS 66
Consolidated Balance Sheet 66
Consolidated Statement of Comprehensive Income 67
Consolidated Statement of Changes in Equity 68
Consolidated Statement of Cash Flow 70
65
Financial Statements Prepared under IFRS 72
Separate Balance Sheet 72
Separate Statement of Comprehensive Income 73
Separate Statement of Changes in Equity 74
Separate Statement of Cash Flow 75
Information from the General Meeting 76
Important Post Balance Sheet Date Events 77
Definition of Terms 78
Contact Details of Central and Regional Centres 79
Identification Information 80
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S A Z K A , a.s.
Annual Report 2009
Contents of the SAZKA, a.s. Annual Report 2009
SAZKA, a.s.
Financial
Summary
(in CZK thousands)
Total revenues
o f w h i c h:
Betting and lottery revenues
since 2008, including
handling fees
Revenues from other activities
subject to tax
Total costs
2003
2004
9,280,919
8,464,143
8,045,966
6,587,814
2005
2006
2007
2008
2009
9,340,167 10,288,844 10,402,921 12,394,341 10,659,811
7,252,811
7,901,594
999,644
797,042
761,940
938,876
7,863,562
7,142,462
7,785,236
8,586,074
4,510,193
3,524,428
3,743,001
3,943,157
7,655,311
8,064,350
8,371,512
820,962
572,923
666,485
8,987,446 11,139,197
9,409,741
o f w h i c h:
Winnings
3,853,345
4,028,952
4,421,526
Profit before tax
1,423,105
1,382,991
1,625,012
1,762,660
1,453,583
1,267,920
1,264,833
Profit after tax
1,417,357
1,321,681
1,554,931
1,702,770
1,415,475
1,255,144
1,250,070
Equity
Total use of proceeds
for good causes
3,584,409
3,612,336
3,381,675
3,256,370
3,148,729
3,131,148
3,332,818
1,051,927
1,107,458
1,289,565
1,080,341
1,042,961
997,380
865,565
863,565
o f w h i c h:
Physical education and sport
1,010,000
1,101,500
1,284,449
1,074,275
1,036,895
991,214
Health care
13,000
1,000
1,000
1,000
1,000
1,000
Cultural projects
26,335
4,458
3,616
4,566
4,566
4,666
Charitable causes
Average number of
employees (FTE)
2,592
500
500
500
500
500
419
422
433
453
459
462
471
Earnings per employee
3,383
3,132
3,591
3,759
3,084
2,717
2,654
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S A Z K A , a.s.
Annual Report 2009
SAZKA, a.s. Financial Summary
2,000
Statement by the Chairman
of the Board of Directors
and Chief Executive Officer
Dear Shareholders, Ladies and Gentlemen,
As you read the SAZKA Annual Report for 2009, there is no way of overlooking the illustrations by the academically trained painter
Ivan Exner, which provide some pleasurable respite in an otherwise rather austere document full of facts and figures. I am confident
that the economic and non-economic results we have achieved will make for pleasant reading despite the fact that the period under
review was quite grim for society as a whole, including for SAZKA, a.s.
The frequently raised argument that, at times of growing financial crisis and stringent household budgets, there is an automatic rise
in the number of people trying their luck and investing their hope in a lottery prize is a myth. Those who gamble most are middleincome classes with a steady job, whose first priority is to cover their essential outgoings before they can dispose freely of any
remaining funds. As unemployment goes up and people and families see their finances dwindle, then inevitably they are more likely
to avoid the betting and lottery operations run by our company and our competitors on the market. The fact that in 2009 SAZKA, a.s.
generated its highest ever revenues from betting and lottery activities did not simply happen by itself. It is the result of toilsome and
purposeful efforts by the management and all those who work for the SAZKA holding, the successful sales activities of our terminal
operators, their resourceful and effective support, well-targeted advertising and, in particular, our portfolio of top-of-the-range
products and services that surpass anything our competitors can offer.
In 2009, SAZKA, a.s. reported revenues from betting and lottery activities amounting to almost CZK 8.4 billion, a year-on-year
increase by about 4%. Total payments for lottery and non-lottery products received at the SAZKA terminals amounted to
CZK 18.6 billion in 2009, with revenues from non-lottery products and services standing at CZK 10.2 billion. Record growth was
recorded primarily in odds betting, as revenues from stakes rocketed year on year by more than 93%. The share of online betting,
launched in January 2009, accounted for 81% of SAZKA’s total odds betting stakes, with a win rate verging on 90%. Of our other
products, the biggest hike in revenues was reported by the Euromillions number lottery, which enjoyed 17% year-on-year growth.
In November 2009, we successfully reached out to numerous betters and customers using the non-lottery services of SAZKA, a.s.
by starting up our comprehensive loyalty programme – Club SAZKA.
I hinted in the introduction that society felt the full force of the economic and financial crisis which has been negatively reflected in
the lives of legal entities and private individuals alike, affected standards of conduct, contractual and normal commercial relations,
and caused tension and fears for the future. The Czech economy reported its worst ever performance, the banks and financial
institutions were on edge and limited their lending while pushing up interest-rate margins, and the exchange rate of the Czech crown
was unpredictable and disadvantageous for SAZKA, a.s. It was in this uptight atmosphere that SAZKA, a.s. carried on its business
operations and prepared new development projects. For 2009, nearly 40 projects were planned which were geared towards
increasing revenues, improving work with agents and streamlining management activities.
Our work in the last months of 2009 was complicated by certain quarters of the media and some politicians whipping up hostility
towards SAZKA, a.s. Their statements, especially in connection with the repayment of the construction costs of the O2 Arena and
the generation of additional funds for the community activities carried out by the shareholders of SAZKA, a.s. were blatantly
intended to give the impression that there was discord among members of the Board of Directors, shareholders and management.
This was a campaign undoubtedly orchestrated by competitors and connected with legislative amendments to the operation of
lotteries and other similar games proposed by politicians and lobbyists. These efforts at adopting new legislation were designed to
hamper the work, damage the projects, and devalue the investments of SAZKA, a.s. It is important that SAZKA, a.s. defends itself
against all such attacks with honour, demonstrates that it is a powerful company operating in accordance with legal standards,
meeting its commitments to its business partners, and complying with obligations arising from the bonds it has issued, and ensures
that all major decisions are approved by the competent authorities and are taken with due professional care and in favour of the
owners of SAZKA, a.s.
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S A Z K A , a.s.
Annual Report 2009
SAZKA, a.s. ended 2009 optimistically and evaluated the year positively, even though it was not focused primarily on maximizing
profits and proceeds. Last year was mainly a time to pave the way for new products and projects that will bear fruit in the future.
It was with this mindset and with this knowledge that the governing bodies adopted the Business Plan and Budget for 2010, and it is
now up to us to take specific steps to comply with them.
I would like to thank everyone behind the achievements of 2009 for their conscientious work, and to express the conviction that
through our joint efforts we will be successful in 2010 too. We are well placed to achieve this and we enjoy the backing of our owners.
Thank you.
May 2010
Aleš Hušák
Chairman of the Board of Directors and Chief Executive Officer, SAZKA, a.s.
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Annual Report 2009
Winter
Corporate Profile
History
SAZKA, the largest lottery company in the Czech Republic, was formed on 3 August 1956. The Company started operating on
15 September 1956, when it launched betting on the results of sports matches and events. Sportka, the oldest and most popular
number lottery in the Czech Republic, has been played since 22 April 1957.
SAZKA became a public limited company on 15 February 1993. The Company’s shareholders are exclusively civic associations active
in the field of physical education and sport, whose members account for a quarter of the population of the Czech Republic (the Czech
Sports Association, the Czech Sokol Organization, the Czech Association Sport for All, the Autoklub of the Czech Republic, the
Association of Sports Federations of the Czech Republic, the Czech Olympic Committee, the Czech Shooting Federation, the
Association of Sports Unions and Clubs of the Czech Republic, and Orel).
Mission
The Company’s basic mission is to provide financial support to good causes, especially in the field of physical education and sport,
out of the proceeds from the games and lotteries it runs. SAZKA, a.s. is the largest private provider of funding for publicly beneficial
causes in the Czech Republic. Besides sport and physical education, the Company also supports projects related to the arts,
education, and medical care.
Since 1956, SAZKA, a.s. has channelled more than CZK 27 billion into good causes.
Motto
“Helping others win!”
Business Objects
The Company’s principal business is the operation of sports betting games and odds betting, number lotteries, and instant lotteries in
accordance with Act No 202/1990 on lotteries and other similar games, as amended.
SAZKA, a.s. has paid out more than CZK 93 billion in prizes to players since 1956.
Market Position
SAZKA, a.s. is the largest domestic operator of number and instant lotteries.
At the same time, it is one of the largest operators in the field of sports betting and odds betting and runs a central lottery system
with interactive lottery terminals. Its portfolio of non-lottery services is unparalleled at home and abroad, encompassing mobile
phone top-up services, sales of tickets for sports, cultural and other events, payments of bills, invoices and insurance premiums, and
payments for goods and services purchased online.
Status in International Organizations
SAZKA, a.s. is a full member of the largest and most significant international lottery organizations, European Lotteries (EL) and World
Lottery Association (WLA). The Company’s Chairman and Chief Executive Officer is a member of the Executive Committee of EL.
Responsible Gaming
SAZKA, a.s. promotes the principles of responsible gaming and ethical principles in the betting and lottery industry. It engages in
and supports these activities both nationally and internationally.
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S A Z K A , a.s.
Annual Report 2009
Corporate Profile
Empty Harbour
Brief Company
History
1956
formation of SAZKA, Sazka betting game
1957
special-purpose vehicle of the Czech Sport Association, Sportka number lottery
1965
second draw introduced in Sportka number lottery
1967
Mates (low-scale television betting)
1969
machine processing of bets
1981
4/40 Lotto (Sázka 5 ze 40)
1984
off-line system
1989
scratch cards
1991
cap on winnings removed
1992
Chance (Šance) add-on game
1993
formation of SAZKA as a public limited company,
on-line system, first jackpot
1994
Lucky 10 (Šťastných 10)
1995
Wednesday draw introduced in Sportka number lottery,
Million Chance (Šance milion) add-on game
1996
odds betting
2002
Keno instant game, mobile phone credit top-up service, foundation stone of multipurpose arena laid
2003
Euromillions (Euromilióny) number lottery
2004
central lottery system with interactive video-lottery terminals, STARPORT gaming system, ticket sales for sports, cultural
and other events, opening of the multipurpose arena
2005
launch of the conversion of the central on-line system and terminal equipment,
SAZKA, a.s. Ten Rules of Responsible Gaming
Royal Game (Královská hra) add-on for Lucky 10 number lottery, payments of bills, invoices and insurance premiums,
sales module
2006
2007
European Lotteries Code of Conduct on Sports Betting
completion of the conversion of the central on-line system and terminal equipment
2008
launch of the Club SAZKA loyalty programme for odds betting, payments for goods and services purchased over the
Internet, Lucky Lines and Dice (Kostky) instant games, preparation of online odds betting (e-Sazka)
2009
launch of fully-fledged SAZKA TIP online odds betting, launch of the Club SAZKA comprehensive loyalty programme
Whereas in 1994 – fifteen years beforehand – SAZKA, a.s. was operating seven games and lotteries, by 2009 this number had risen
to almost sixty. The portfolio includes new number and instant lotteries, a central lottery system with interactive video-lottery
terminals and online odds betting. Back in 1994, SAZKA, a.s. offered no non-lottery services via its terminals; by 2009, the volume of
non-lottery payments received via SAZKA terminals exceeded revenues from betting and lottery activities.
Between 1994 and 2009, SAZKA, a.s. saw a rise in revenues from betting games and lotteries by three and a half times and an
increase in net profit by 2.7 times, while contributions to good causes went up by 2.4 times. The market value of the Company, which
regularly figures among the most profitable corporations, rose by 4.5 times and, according to a study conducted by the European
Brand Institute, SAZKA, a.s. became the most valuable trademark in the Czech Republic.
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S A Z K A , a.s.
Annual Report 2009
Brief Company History
Summer
Main Events of 2009
and the First Quarter
of 2010
Launch of SAZKA TIP – full-scale online odds betting – on 5 January 2009
Registered customers can use the site at www.sazkatip.cz to prepare their sports odds betting wagers and then place and pay for
their bets online. For the first time in the history of Czech odds betting, it is possible for betters to place wagers legally from the
comfort of their own home.
Payment of an instalment of a bond issue on 12 January 2009
In accordance with the terms and conditions of the issue documentation and the repayment plan, on 12 January 2009 SAZKA, a.s.
paid another instalment on the bonds issued in connection with the construction of the multipurpose arena.
European Parliament Resolution of 10 March 2009 on the regulation of betting and lotteries
The European Parliament adopted a resolution, by an overwhelming majority, confirming the right of EU Member States to regulate
gambling and lotteries at national level.
Sportka Spring Premium 2008 as of 23 March 2009
The traditional Sportka Spring Premium 2009 offered players a bonus of CZK 70 million on top of the jackpot. The premium was up
for grabs between 25 March 2009 and 21 June 2009.
Launch of the new instant lottery MEGA on 17 April 2009
MEGA instant lottery tickets, costing CZK 10 each, offered a main prize of CZK 1 million. The lottery uses a simple “scratch three”
playing principle; two identical amounts in two playing sections indicate a win.
Launch of the new KITcash non-lottery service on 5 May 2009
The new KITcash non-lottery service offered a new method for the safe, reliable and discreet payment of goods or services ordered
over the Internet.
Annual General Meeting of SAZKA, a.s. held on 27 May 2009
The Annual General Meeting of SAZKA, a.s. discussed and approved the report on business activities, assets and financial results for
2008. SAZKA’s total revenues in 2008 amounted to CZK 12.39 billion; revenues from the core business (betting and lottery activities)
were CZK 8.06 billion and the profit after tax was CZK 1.25 billion.
Launch of the new instant lottery ELDORADO on 3 July 2009
This instant lottery ticket has three graphic designs linked to symbols of gold. The lottery mainly targets players with an inclination
for the “find a symbol” principle and builds on the successful Golden Way (Zlatá cesta) lottery.
Payment of an instalment of a bond issue on 13 July 2009
In accordance with the terms and conditions of the issue documentation and the repayment plan, on 13 July 2009 SAZKA, a.s. paid
another instalment on the bonds issued in connection with the construction of the multipurpose arena.
Launch of the Aztec It or Leave It videogame in the STARPORT system on 27 July 2009
This five-real symbol videogame uses classic fruit and Indian symbols of Central America. The lucrative basic prizes and bonus
game have placed it among the most popular games in the STARPORT system. Winnings can be multiplied by selecting the Risk
add-on game.
Launch of new Party Fruits videogame in the STARPORT system on 27 July 2009
Another five-reel symbol videogame from 2009, this game uses fruit symbols. The bonus game has made it among the most popular
games in the STARPORT system. Winnings can be multiplied by selecting the Risk add-on game.
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S A Z K A , a.s.
Annual Report 2009
Main Events of 2009 and the First Quarter of 2010
Compliance with the conditions of Section 123 of Act No 256/2004 on 28 August 2009
In accordance with Act No 203/2009 amending Act No 256/2004 on the capital market, SAZKA, a.s. reported that it had selected the
Czech Republic as the state in which it would meet its tax liability under this law.
Ruling of the European Court of Justice of 9 September 2009
The European Court of Justice, the court of highest instance in matters of Community law, delivered a groundbreaking ruling
confirming the right of Member States to regulate betting and lotteries on their own territory and to prohibit gambling offered over
the Internet by operators established in other Member States of the European Union.
New lottery draw programmes as of 12 September 2009
A new, more modern form of the lottery draw programmes for the most popular domestic lotteries, Sportka and Lucky 10 (broadcast
since 1973 and 1994 respectively), appeared on television screens. The last change in format took place 2001.
Sportka Winter Premium 2009 as of 5 October 2009
The traditional Sportka Winter Premium 2009 offered players a bonus of CZK 70 million on top of the jackpot. The premium was up
for grabs between 7 October 2009 and 30 December 2009.
Launch of new Flamin Fruits videogame in the STARPORT system on 19 October 2009
A three-reel symbol game that offers customers a simple system with bonus free games. Winnings can be multiplied by selecting the
Draw (Losování) add-on game.
Launch of new Double Bubble videogame in the STARPORT system on 19 October 2009
Another three-reel symbol game offering customers a simple system with a Joker doubling the winnings. Winnings can be multiplied
by selecting the Draw (Losování) add-on game.
Launch of new Fruits Galore videogame in the STARPORT system on 19 October 2009
A three-reel symbol game based on the principle of a simple system with a Joker and four symbols on the reel. Winnings can be
multiplied by selecting the Draw (Losování) add-on game.
Launch of the Club SAZKA comprehensive loyalty programme on 27 October 2009
SAZKA, a.s. launched a new, comprehensive loyalty programme called Club SAZKA for the customers of its lottery and non-lottery
products. Depending on their level of registration and membership, Club SAZKA members gain access to a number of advantages,
bonuses and benefits.
Launch of the new instant lottery Lucky Numbers IV (Šťastná čísla IV) on 27 November 2009
The Lucky Numbers IV instant lottery ticket has nine graphic forms with the numbers 1 to 9. The lottery applies the “find a number”
principle and is intended primarily for those customers who like numerology. This is the fourth series of successful lotteries on this
theme.
Launch of SAZKA TIP live betting on 16 December 2009
On the website at www.sazkatip.cz, registered players can bet on selected sports events while they are in progress. When placing a
bet, players pay no handling fee and the odds change as the game or competition progresses.
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S A Z K A , a.s.
Annual Report 2009
FIRST QUARTER OF 2010
Extension of cooperation between SAZKA, a.s. and GTECH Global Services Corporation on 13 January 2010
GTECH Global Services Corporation, a subsidiary of Lottomatica Group S. p. A., and SAZKA, a.s. agreed to extend their cooperation.
The contract, for the period up to the end of 2022, includes the provision of online products and services, the operation and
maintenance of online systems and terminals, and the transition of the communications infrastructure to the new satellite
IP network.
Signing of Addendum No 2 to the Unit Shares Purchase Agreement of 13 January 2010
On 13 January 2010, under Addendum No 2 to the Unit Shares Purchase Agreement between SAZKA, a.s. and GTECH
CORPORATION, 12,000 unit shares in GTECH Czech Republic LLC were sold by GTECH CORPORATION.
Payment of an instalment of a bond issue on 12 January 2010
In accordance with the terms and conditions of the issue documentation and the repayment plan, on 12 January 2010 SAZKA, a.s.
paid another instalment on the bonds issued in connection with the construction of the multipurpose arena.
Launch of the new instant lottery DIAMOND (DIAMANT) on 20 January 2010
The ticket has three graphic designs and offers players two playing sections with different symbols, among which the players look
for diamonds. A single diamond results in a win; two and three diamonds count as two and three wins respectively on a single card.
Innovation in the Sportka number lottery as of 17 February 2010
An innovation in the Sportka number lottery, the SUPERJACKPOT, introduced on 17 February 2010, comprises the higher of the
jackpots in the first or second draw plus a bonus based on the volume of revenues received. This is the most important new
development in our oldest and most popular number lottery number since 1995, when the Wednesday draw was added, and since
1998, when premiums were introduced.
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Annual Report 2009
Accolades
Placement in the CZECH TOP 100 survey “100 Most Significant Companies in the Czech Republic 2008”
In the 15th annual survey of the 100 Most Significant Companies in the Czech Republic in 2008, a chart compiled by the
CZECH TOP 100 association on the basis of revenues, SAZKA, a.s. came first in the category Other Public, Social and
Personal Services.
Placement in the survey “Top 100 – the Largest and Most Successful Companies in the Czech Republic”
In this survey, which rated economic operators according to selected economic criteria in 2008, the Company ranked sixth in the
category “Most Successful Corporations”, first in the Industry category, and twelfth in the category of “Highest Earnings per Employee”.
Placement in the survey “100 Admired Companies in the Czech Republic”
In the “100 Admired Companies in the Czech Republic” chart, put together by the CZECH TOP 100 association on the basis of votes
by managers, economic and financial analysts, representatives of labour associations, unions and professional associations,
SAZKA, a.s. ranked second in the category “Other Public, Social and Personal Services”.
SAZKA – the most valuable brand in the Czech Republic
According to a study by the European Brand Institute, which examined more than 3,000 companies in 24 European countries and
16 sectors of the economy, the Sazka brand is the most valuable brand in the Czech Republic.
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S A Z K A , a.s.
Annual Report 2009
Accolades
Corporate Governance
BOARD OF DIRECTORS
Chairman of the Board of Directors
Aleš Hušák
born: 1957
Chairman of the Board of Directors since 14 March 1995
Member of the Board of Directors since 19 April 1994
reappointed as a member, and subsequently as the Chairman, of the Board of Directors on 22 May 2003
reappointed as a member, and subsequently as the Chairman, of the Board of Directors on 28 May 2008
Vice-Chairman of the Board of Directors
Roman Ječmínek
President of the Autoklub of the Czech Republic
born: 1940
Vice-Chairman of the Board of Directors since 27 November 1995
Member of the Board of Directors since 17 May 1993
reappointed as a member, and subsequently as the Vice-Chairman, of the Board of Directors on 22 May 2003
reappointed as a member, and subsequently as the Vice-Chairman, of the Board of Directors on 28 May 2008
Members of the Board of Directors
Jaroslav Bernard
Chairman of the Czech Sokol Organization
born: 1938
reappointed as a member of the Board of Directors on 28 May 2008
Milan Jirásek
Chairman of the Czech Olympic Committee
born: 1936
Member of the Board of Directors since 26 September 1997
Jiří Laurenc
Chairman of the Czech Association Sport for All
born: 1946
Karel Malý
Chairman of the Prague Physical Education Union
born: 1960
Member of the Board of Directors since 27 June 1997
Vladimír Srb
Chairman of the Czech Sports Association
born: 1944
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S A Z K A , a.s.
Annual Report 2009
SUPERVISORY BOARD
Chairman of the Supervisory Board
Pavel Kořan
Vice-Chairman of the Czech Sports Association
born: 1950
Chairman of the Supervisory Board since 8 October 2008
Member of the Supervisory Board since 28 May 2008
Vice-Chairman of the Supervisory Board
Ladislav Šustr
Chairman of Orel
born: 1944
Vice-Chairman of the Supervisory Board from 28 May 1998 to 22 May 2002
Member of the Supervisory Board since 27 June 1997
reappointed as a member, and subsequently as the Vice-Chairman, of the Supervisory Board on 30 May 2007
removed as a member and the Vice-Chairman of the Supervisory Board on 19 November 2009
Jan Ulrych
Chairman of the Sport Department of the Czech Sokol Organization
born: 1963
appointed as the Vice-Chairman of the Supervisory Board on 19 November 2009
Members of the Supervisory Board
Václav Kobes
Association of Sports Federations of the Czech Republic
born: 1948
Member of the Supervisory Board since 20 August 2003
reappointed as a member of the Supervisory Board on 8 October 2008
Jaroslav Němec
President of the Association of Sports Unions and Clubs of the Czech Republic
born: 1951
reappointed as a member of the Supervisory Board on 24 May 2006
Jaroslav Pekař
President of the Czech Shooting Federation until 30 May 2009
born: 1944
Chairman of the Supervisory Board from 28 May 1998 to 8 October 2008
reappointed as a member, and subsequently as the Chairman, of the Supervisory Board on 25 May 2005
removed as a member of the Supervisory Board on 23 September 2009
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S A Z K A , a.s.
Annual Report 2009
Petr Baroch
President of the Czech Shooting Federation as of 30 May 2009
born: 1960
Member of the Supervisory Board since 23 September 2009
Ladislav Kotík
Secretary-General of Orel
born: 1977
Member of the Supervisory Board since 19 November 2009
Members of the Supervisory Board Elected by Employees
Jan Kašpárek
Head of the Monitoring Help Desk Unit
born: 1953
reappointed as a member of the Supervisory Board on 30 June 2004
reappointed as a member of the Supervisory Board on 23 September 2009
Jan Prádler
Director of the Financial Division
born: 1959
Karel Rozhoň
Head of the Debt Collection Section
born: 1945
MANAGEMENT
Aleš Hušák
Chief Executive Officer
born: 1957
employed at the Company since 4 January 1995
Roman Ječmínek
Statutory Deputy Chief Executive Officer
born: 1940
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S A Z K A , a.s.
Annual Report 2009
Josef Tupý
First Deputy Chief Executive Officer
Director of the Autonomous Project Management, Implementation and Conversion Department
born: 1947
employed at the Company from 31 March 1972 to 31 May 2009
Ivo Tajšl
First Deputy Chief Executive Officer (since 1 July 2009)
Director of the Games and Betting Division
born: 1962
employed at the Company since 1 September 1984
Jan Prádler
Second Deputy Chief Executive Officer (as of 1 February 1997)
Director of the Financial Division
born: 1959
employed at the Company since 1 March 1995
Jiří Barnat
charged with management of the Autonomous Equity Holdings Department
born: 1969
employed at the Company since 1 August 1996
Josef Hájek
charged with management of the Autonomous Department of the Secretariat of the Chief Executive Officer
born: 1942
employed at the Company since 1 December 1995
Jiří Hosnedl
Director of the Operations and Technology Division
born: 1963
Miloslava Klikarová
Director of the Distribution Network Division
born: 1957
employed at the Company since 18 October 1993
Petr Machovský
Director of the Sales Division
born: 1970
20
S A Z K A , a.s.
Annual Report 2009
Hana Mikulková
Principal Administrator of the Legislation and Legal Department
born: 1959
employed at the Company from 1 September 2002 to 30 May 2009
Richard Prorok
Secretary to the Chairman of the Board of Directors and Chief Executive Officer
born: 1954
employed at the Company since 1 April 1995
Josef Prouza
Director of the Autonomous Promotions and Public Relations Department
born: 1957
employed at the Company since 1 February 1995
Markéta Štěrbová
Director of the Administration Division
born: 1958
employed at the Company since 1 November 1988
Pavel Volf
Director of the Autonomous Dispatching Unit
born: 1974
Zdeněk Zikmund
Press Officer
born: 1964
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S A Z K A , a.s.
Annual Report 2009
The Harvest is Rich, the Workers are Few
Ownership
Structure
Czech Sports Association (Český svaz tělesné výchovy)
number of members
approximately 1,563,132
equity share in CZK
951,480,000
percentage share
67.983
chairman
Vladimír Srb
registered office
Zátopkova 100/2, 160 17 Praha 6 – Břevnov
registered number
469548
this shareholder owns:
– 951 shares in SAZKA, a.s. with a nominal value of CZK 1,000,000,
– 4 shares in SAZKA, a.s. with a nominal value of CZK 100,000,
– 8 shares in SAZKA, a.s. with a nominal value of CZK 10,000.
Czech Sokol Organization (Česká obec sokolská)
number of members
approximately 187,000
equity share in CZK
189,540,000
percentage share
13.542
chairman
Jaroslav Bernard
registered office
Tyršův dům – Újezd 450/40, 118 01 Praha 1 – Malá Strana
registered number
409537
Czech Association Sport for All (Česká asociace Sport pro všechny, občanské sdružení)
number of members
equity share in CZK
77,860,000
percentage share
5.563
chairman
Jiří Laurenc
registered office
Ohradské náměstí 1628/7, 155 00 Praha 5 – Stodůlky
registered number
551368
23
S A Z K A , a.s.
Annual Report 2009
Ownership Structure
Autoklub of the Czech Republic (Autoklub České republiky)
number of members
equity share in CZK
55,980,000
percentage share
4.000
president
Roman Ječmínek
registered office
Opletalova 29, 110 00 Praha 1 – Nové Město
registered number
550264
Association of Sports Federations of the Czech Republic (Sdružení sportovních svazů České republiky)
number of members
equity share in CZK
49,870,000
percentage share
3.563
chairman
Zdeněk Ertl
registered office
U Pergamenky 3, 170 00 Praha 7 – Holešovice
registered number
174262
Czech Olympic Committee (Český olympijský výbor)
equity share in CZK
27,990,000
percentage share
2.000
chairman
Milan Jirásek
registered office
Benešovská 6, 101 00 Praha 10 – Vinohrady
registered number
48546607
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S A Z K A , a.s.
Annual Report 2009
Ownership Structure
Czech Shooting Federation (Český střelecký svaz)
number of members
equity share in CZK
20,230,000
percentage share
1.445
president
Petr Baroch
registered office
U Pergamenky 3, 170 00 Praha 7 – Holešovice
registered number
539520
Association of Sports Unions and Clubs of the Czech Republic
(Asociace tělovýchovných jednot a sportovních klubů České republiky)
number of members
equity share in CZK
14,310,000
percentage share
1.022
president
Jaroslav Němec
registered office
Slezská 36, 120 00 Praha 2 – Vinohrady
registered number
536571
– 1 share in SAZKA, a.s. with a nominal value of CZK 10,000.
Orel o.s.
number of members
equity share in CZK
12,340,000
percentage share
0.882
chairman
Ladislav Šustr
registered office
Pellicova 2c, 602 00 Brno
registered number
544833
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S A Z K A , a.s.
Annual Report 2009
Ownership Structure
Capital Interests
Agro Tera,a.s.
this company was incorporated by entry in the Commercial Register kept by the Municipal Court in Prague, Section B, Entry 4796,
on 24 June 1997
registered number
VAT number
registered office
share capital
stake held by SAZKA, a.s.
25138481
CZ25138481
Sokolovská 140/325, 186 00 Praha 8
CZK 355,120,000
100%
Objects of business:
– manufacture, trade and services not specified in Annexes 1 to 3 to the Trade Licensing Act,
– catering services.
BUSINESS CENTRE SERVICE a.s.
on 14 February 1994
registered number
VAT number
company director
registered office
share capital
60194227
CZ60194227
Milan Koudelka
K Žižkovu 851, 190 93 Praha 9
CZK 51,580,000
100%
– security of property and persons and private detective services,
– catering services,
– construction of structures, changes thereto, and demolition thereof,
– road transport,
– construction design,
– operation of solariums,
– massage, reconditioning, and regeneration services,
– distribution of electricity,
– provision of telecommunication services.
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S A Z K A , a.s.
Annual Report 2009
Capital Interests
ARKADIA, a.s.
this company was incorporated by entry in the Commercial Register kept by the Regional Court in Hradec Králové, Section B,
Entry 1775, on 28 April 1998
registered number
VAT number
registered office
share capital
25287907
CZ25287907
Trutnov, Dolní Staré Město, Krkonošská 566, 541 01
CZK 431,500,000
100%
– accounting consulting, bookkeeping, tax accounting,
– construction of structures, changes thereto, and demolition thereof.
KPS MEDIA a. s.
on 26 January 1995
registered number
VAT number
company director
registered office
share capital
61860735
CZ61860735
Roman Ječmínek
CZK 110,000,000
100%
– manufacture, trade and services not specified in Annexes 1 to 3 to the Trade Licensing Act.
GTECH Czech Republic LLC.
this company was incorporated by entry in the Commercial Register kept by the Municipal Court in Prague, Section A, Entry 7551,
on 23 December 1992
registered number:
manager
legal form
registered office
main place of business
registered capital
stake held by GTECH
48135674
Peter Šimko
organizational unit
1209 Orange Street, Wilmington, Delaware, USA
branch registered at K Žižkovu 4, Praha 9
100,000 unit shares
75%
25%
– purchase and resale of goods,
– provision of software,
– automated data processing,
– provision of private data transmission telecommunication services under a Czech Telecommunications Office licence,
– installation and upkeep of office and reproduction electronics,
– telecommunication equipment repairs, with the exception of activities specified in Section 3(2)(h) of Act No 455/1991,
– installation and upkeep of electrical machinery and appliances.
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S A Z K A , a.s.
Annual Report 2009
Capital Interests
BESTSPORT akciová společnost
on 28 June 1991
registered number
19013825
VAT number
CZ19013825
company director
Michal Krejcar
registered office
share capital
CZK 1,700,000,000
(under an Order of the Municipal Court in Prague which entered into force on 23 November 2009, an increase in the share capital to
the current CZK 1.7 billion was entered in the Commercial Register)
0.07%
stake held by ZELENÝ OSTROV,
Civic Association
99.93%
– catering services.
SPORTLEASE a.s.
on 8 March 1995
registered number
VAT number
registered office
company director
share capital
62361546
CZ62361546
Ivan Ivančo
CZK 40,100,000
100%
KOLBY a.s.
this company was incorporated by entry in the Commercial Register kept by the Regional Court in Brno, Section B, Entry 2535, on
23 December 1997
registered number
VAT number
company director
registered office
share capital
25512919
CZ25512919
Martin Nesvadba
Česká 51, Pouzdřany
CZK 78,950,000
99.99%, (0.01% Lukáš Kuhajda)
– construction of structures, changes thereto, and demolition thereof,
– farming operations,
28
S A Z K A , a.s.
Annual Report 2009
Capital Interests
SAZKA FOUNDATION (NADACE SAZKA)
this foundation was incorporated by entry in the Foundations Register kept by the Municipal Court in Prague, Section N, Entry 456,
on 19 August 2002
registered number
26706989
chairman of the board of trustees
Milan Jirásek
registered office
founder
SAZKA, a.s.
Purpose of foundation:
– the purpose of the foundation is to support education in the Czech Republic, i.e. in particular to ensure that young talented people
have the opportunity of a decent education by offering financial support in the form of scholarships and grants for scientific,
technical, artistic, and cultural projects intended for children and young people. Besides education, the SAZKA Foundation is keen,
in the future, to set its sights on health care (support for programmes aimed at improving the lives of patients with leukaemia and
other blood diseases and tumours) and welfare (support for projects aimed at abused, disabled and abandoned children).
SAZKA INTERNATIONAL
this company was incorporated in the single state register of legal entities in Russia on 4 April 2006
state registration number
1067746448220
VAT number
7718580664
registered office
Russia, Moscow 107023, Malaya Semyonovskaya 9, Building 3, Second Floor
share capital
RUB 10,000
100%
– operation of lotteries and other similar games via an online lottery system and non-lottery activities, specifically the operation of a
system for the credit top-up of chip cards.
29
S A Z K A , a.s.
Annual Report 2009
Capital Interests
Tuscan Landscape
Board of Directors
Report
FULFILMENT OF STRAT EGIC GOALS IN 2009
Positive progress was made in lottery activities in 2009. Despite the ongoing economic and financial crisis, lottery sales increased.
Lottery revenues in 2009 rose by 3.8%, and thus continued their growth. The biggest factors underpinning this achievement were the
rises in sales revenue from sports bets, including SAZKA TIP online betting (an increase by 93.7%, excluding the handling fee) and
the Euromillions number lottery (16.9%). The slight decline in sales revenue from the Sportka number lottery, reflecting
developments in the jackpot, was fully offset by growth in sales of other add-on games and increased sales of Lucky 10 with the
Royal Game. Sales revenue from instant lotteries also increased (by 4.7%). Compared to 2008, the only drop in financial results was
recorded with the STARPORT gaming system (13.5%), which can be attributed to the impact of the economic crisis on this market
segment in general and the regulations recently imposed on video-lottery terminals by local authorities.
Income from lottery activities, reflecting in part the marketing programme, increased by 3.7% compared to 2008 and came to
CZK 8,463.8 million. However, overall revenues (including taxed operations) were down on 2008 by CZK 1,734.5 million, because
in 2009 capital operations unfolded at lower volumes.
Lottery costs increased, mainly in terms of winnings and depreciation, which is linked to higher sales volumes, but on the other hand
the cost of commissions and advertising decreased. Other overhead costs grew. Compared to 2008, the costs of taxed operations fell
by CZK 2,097.7 million due to the decline in the turnover of capital operations and the impact of revaluation differences.
Despite the ongoing economic and financial crisis, when the overall results for 2009 are placed alongside those of 2008, we can see
that the level of gross profit has been maintained. The profit from lottery activities decreased by CZK 62.4 million, mainly as a result
of the rising share of games offering better win rates. The loss on activities subject to income tax narrowed to CZK 3.2 million
(a reduction by CZK 59.4 million on 2008), because, compared to 2008, there were no accounting impacts due to the revaluation of
bond commitments. The profit after tax in 2009 amounted to CZK 1,250.1 million.
Profitability in 2009 was 11.9%, upon the 10.2% recorded in the previous year.
Proceeds in 2009 stood at CZK 1,175.8 million, i.e. approximately 7% lower than in 2008. This reflects the slight decrease in profits
from lottery activities. Further to a resolution of the SAZKA, a.s. General Meeting, the proceeds will be used as contributions to the
Zelený Ostrov (Green Island) civic association, the shareholders of SAZKA, a.s., and certain charities.
Major Development Projects Managed by SAZKA, a.s. in 2009
In 2009, SAZKA, a.s. concentrated its efforts on online betting and on the next phase of the comprehensive loyalty programme with a
view to consolidating the status enjoyed by SAZKA, a.s. in the competitive environment.
SAZKA, a.s. had already taken a number of steps related to Internet products in 2008. Following the Finance Ministry’s change of
heart regarding online betting in late 2008, SAZKA, a.s. found itself, in early 2009, in a position to launch the Internet applications
that it had already prepared. Through these investments, SAZKA, a.s. managed to extend its product and technological lead over key
domestic competitors.
Key projects in 2009 consisted of those linked to Internet use, especially the SAZKA TIP project and the comprehensive loyalty
programme; however, it is worth noting that there were also other projects, designed to fuel growth in non-lottery and lottery sales.
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S A Z K A , a.s.
Annual Report 2009
Board of Directors Report
– The SAZKA TIP project (full-scale online betting) was launched in early 2009 and was promoted by an accompanying publicity
campaign. Under its new SAZKA TIP brand, the Company currently offers all of the kinds of odds betting permitted by law –
wagers placed at brick-and-mortar branches, bets prepared online and then placed at brick-and-mortar branches or by telephone,
and fully-fledged online betting. With the introduction of the Internet application, the number of odds offered and betting
opportunities is now several times higher than in the past. There has been a significant improvement in the possibilities available
to our systems, including the “composite” systems, which has provided us with the opportunity to combine different types of
games. In 2009, sales revenue from odds betting came to CZK 726.6 million, excluding handling fees. This is a rise by 93.7% on
2008. Handling fees generated an additional CZK 12.3 million. Consequently, odds betting has become the third most important
segment of the SAZKA, a.s. gaming portfolio, reporting a share of 8.1% in 2009.
– Revenues from the whole portfolio of lottery and non-lottery products profit from the Club SAZKA Comprehensive Loyalty
Programme, offering extensive benefits to participants. Features that can be used for all products and customers of SAZKA, a.s.
(with the exception of the STARPORT gaming system) have been introduced, including the use of customer cards. The system was
rolled out in its entirety in late October 2009. Club SAZKA statutes, operating regulations and a terminal operator manual have
been drawn up, and training was provided to agents in all regions. Club cards were designed and the content of the Club SAZKA
e-shop was prepared with point-based valuations of individual items. Then, in the second half of 2009, Club SAZKA was put into
trial operation. In the future, the Comprehensive Loyalty Programme will cut the cost of marketing surveys and publicity. Activities
associated with the running of the club can also be used in the responsible gaming strategy and as part of efforts to reduce the risk
of gambling or gaming by minors.
Other SAZKA, a.s. Projects in 2009
Twenty projects were planned for 2009, including some launched in 2008. The prime objective of these projects was to generate more
sales for the Company, improve work with agents and make management more efficient.
– Following the expansion of the Internet applications, the design and structure of websites, including those of subsidiaries, was
altered, and the single content management system was expanded.
– The project for payments of goods and services purchased on the Internet – the e-Payments product – was extended to include
another partner: KIT DIGITAL CZECH. The KITcash service is mainly linked to multimedia portals. The inclusion of other partners
in the project and the expansion of this service are in the pipeline.
– New games were introduced in the STARPORT gaming system, although overall the portfolio was intentionally narrowed to games
which have proven most popular and most interesting for customers. In 2009, the number of IVT installations increased from 1,099
to 1,230 terminals.
– Customers were once again given the incentive to put more money into the Sportka number lottery in spring and autumn 2009 by
financial bonuses of CZK 70 million. Total sales revenue from the Sportka number lottery amounted to almost CZK 4.9 billion.
– A lottery product plan was implemented under the new umbrella brands SAZKA LOS (SAZKA TICKET), SAZKA EXPRES and
SAZKA TIP; this approach enables the Company to apply a new concept for the promotion of these products in order to make the
impact on target customer groups more effective.
– Within the framework of SAZKA LOS, the MEGA lottery was launched in April 2009 and the new ELDORADO lottery in July 2009;
at the end of the year, ELDORADO replaced the Lucky Numbers IV and the winding-down Lucky Numbers III lotteries. The MEGA
lottery is currently the Company’s bestseller in terms of the number of tickets sold.
– The project for the uniform furbishing of outlets continued. At the end of 2009, the uniform equipment had been installed at
774 outlets, which was well ahead of the annual installation plan. In order to fuel growth in sales of instant games and non-lottery
products, 556 LCD monitors were installed at selected POS.
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S A Z K A , a.s.
Annual Report 2009
– In 2009, further SAZKA POINT equipment was installed at selected outlets; by the end of the year, this project had been
implemented at approximately 400 POS. A compact computer and printer wired to the Internet is installed in these outlets. Here,
customers can obtain all the information they need online about the products of SAZKA, a.s., with the possibility of booking tickets
in the SAZKA TICKET system or taking out various types of insurance on the ČPP website. This service is free for customers.
– Adjustments were made to the Ticketing product; in particular, the Denax application was reconfigured and software modifications
were made to the GTECH system. This is part of a plan to create a platform for the expansion of services in the VIP areas of the
O2 Arena in order to increase the comfort of visitors.
– The objective pursued by SAZKA, a.s. in 2010 is a gradual transition to the use of the Internet (IP protocol). With this in mind, in
2009 tests were run on the IP network via ADSL, VSAT and O2 CDMA mobile network communication channels. The tests were
successful and installation was launched at SAZKA, a.s. outlets at the beginning of the second half of 2009.
– In connection with the introduction of SAZKA TIP live betting, a test system for online betting and other Internet applications
(e-casino, live betting and SAZKA TIP) was purchased.
– For terminals in the GTECH network, pin pads, chip and magnetic card readers, and OCR readers were acquired. Chip card readers
are initially being used in conjunction with the Comprehensive Loyalty Programme.
Corporate Financing
The year 2009 was characterized by the ongoing financial and economic crisis. Although the Czech banking sector remained stable,
banks decided to stem lending to the corporate sector because of concerns about their economic situation.
As the financial crisis continued, some banks opted to reduce their credit exposure to the corporate sector and to increase the
interest margins on the loans they granted. Nevertheless, for most facilities the Company managed to extend the credit maturity.
In 2009, SAZKA, a.s. entered into negotiations with major banking partners to explore “club funding” as a means of ensuring the
stability of credit relations and the liquidity of the Company. Discussions to hammer out the considerations progressed intensively in
late 2009 and have continued into 2010. The goal is to find a solution that allows the Company to continue making contributions of
its proceeds to shareholders at reasonable levels and to secure the credit claims of the banks in accordance with the issue
documentation for the bonds issued by the Company.
Despite the fallout from the financial and economic crisis, in 2009, SAZKA, a.s. maintained an appropriate level of liquidity, honoured
its obligations to winners, paid its bond commitments as they became due and settled its other trade payables.
SAZKA, a.s. Rating
In 2009, the SAZKA, a.s. rating was affected by the impact of the global financial crisis, the need to address the BESTSPORT
scheme of bills of exchange, and the intensity of negotiations seeking club funding.
– In 2009, Moody’s national rating for SAZKA, a.s. was gradually reduced to Ba1.cz with a negative outlook.
– In the first half of 2009, Standard & Poor’s left the SAZKA, a.s. corporate rating and bonds at B+, but downgraded the corporate
rating outlook to negative. At the end of 2009 and in early 2010, the rating was steadily reduced to CCC+ and the negative outlook
was changed to “developing”, which indicates the possibility of either improvement or deterioration depending on the outcome of
SAZKA’s negotiations on club funding.
SAZKA, a.s. acknowledged the developments in the rating, including comments emphasizing its sustainable business model with
stable operating characteristics, cash flow and significant position in the betting and lottery market in the Czech Republic; based on
the rating agency’s recommendations, the Company took action to resolve the BESTSPORT bill scheme and prepare for debt
restructuring.
33
S A Z K A , a.s.
Annual Report 2009
REMARKS ON THE FINANCIAL RESULTS
The fundamental economic objectives of the business strategy in 2009 were to ensure sufficient proceeds for good causes, to
increase the Company’s profit and to achieve a high degree of liquidity.
Proceeds from all betting games and number lotteries were distributed to physical education and sports, health care, the arts, and
charity projects.
A high degree of liquidity was required to ensure the fulfilment of the Company’s liabilities stemming from its business activities
(e.g. the payment of large winnings, the distribution of proceeds to beneficiaries, and operating liabilities). This task was performed
continuously throughout 2009.
Proceeds amounted to CZK 1,175.8 million; the Company’s profit after tax was CZK 1,250.1 million.
Revenue
In 2009, SAZKA, a.s. generated revenues totalling CZK 10,659.8 million. Of this, stakes from betting games, number lotteries, and
instant lotteries amounted to CZK 8,371.5 million. Revenues from other activities subject to income tax came to CZK 666.5 million
in 2009.
Compared to 2000, i.e. over a ten-year period, gambling revenues rose by CZK 1,423.5 million; compared to 2008, they were up by
CZK 307.2 million.
Compared to 2000, revenues from other operations subject to income tax were lower by CZK 7,773.7 million, but compared to 2008
they increased by CZK 93.6 million.
Profit
The most important indicator determining the amount of proceeds and the subsequent portion thereof used for good causes is the
profit from betting and lottery operations.
In 2009, SAZKA, a.s. posted net earnings of CZK 1,250.1 million. Compared with 2000, the profit was up by CZK 176.9 million;
compared with 2008, the profit was CZK 5.1 million lower.
Betting games, number lotteries, and instant lotteries generated earnings of CZK 1,268.1 million in 2009 and operations subject to
income tax made a loss of CZK 18.0 million after tax.
Proceeds from betting and lottery business
From the perspective of our shareholders, the most important indicator is proceeds and their use to support good causes. In 2009,
the distribution of proceeds totalled CZK 865.6 million, CZK 35.4 million lower than in 2000. SAZKA, a.s. contributed CZK 75.1 million
more to good causes than the amount required under Act No 202/90.
34
S A Z K A , a.s.
Annual Report 2009
Business subject to income tax
SAZKA’s business activities subject to income tax included GSM credit top-up services, ticketing, the sales module, financial
services, the lease of part of the Company’s office building, the lease of chattels, services connected with centralized bookkeeping, an
internal savings association, and services connected with the financing of the O2 Arena.
Cash flow
The Company maintained sufficient liquid funds throughout 2009. Some operating finances were saved for the distribution of
proceeds to good causes. Of this, in 2009 CZK 151.2 million was paid as an advance and a final payment of the distribution of part of
the proceeds for 2007 to shareholders, CZK 6.1 million was paid as an advance on the distribution of part of the proceeds to
non-shareholders for 2008, CZK 23.2 million was paid as an advance on the distribution of part of the proceeds for 2008 to
shareholders, and CZK 845.1 million was paid as an advance on the distribution of part of the proceeds for 2009 to the civic
association Zelený Ostrov.
GOOD CAUSES
In keeping with its motto of “Helping Others Win!”, SAZKA’s mission is to generate resources for good causes, especially sport and
physical education. SAZKA, a.s. has long term been the largest private provider of funding for publicly beneficial causes in the Czech
Republic.
The funds it generates are used to finance sport and physical education, leisure activities for children and young people, and the
construction, operation, maintenance and renovation of sports or multipurpose facilities such as the Strahov and Podolí complexes,
the Prague Sports Hall, and the multipurpose O2 Arena.
Besides sponsoring sport, SAZKA, a.s. also provides assistance in other areas of public interest. The Company provides assistance to
selected projects in the arts, education, and health care, and projects of a social and charitable nature.
Sport and physical education
SAZKA, a.s. has long been the largest private provider of funding for publicly beneficial causes in the Czech Republic. Between 1993
and 2009, SAZKA, a.s. channelled more than CZK 15.0 billion into good causes, mainly sport and physical education.
Shareholders (civic associations active in sports and physical education) are the recipients of the vast majority of the proceeds
distributed by SAZKA, a.s. from games and lotteries. In 2009, SAZKA, a.s. placed more than CZK 1,025.46 million in good causes.
Of this amount, CZK 1,019.39 million was paid to shareholders, i.e. civic sports and physical education associations. These
contributions are then used for these sports and physical education associations’ own activities and for repayments of the bonds
issued in connection with the construction of the multipurpose arena, which was constructed in 2004 based on a decision of the
owners and at the request of the State.
Of the proceeds from its games and lotteries in 2009, SAZKA, a.s. distributed CZK 865.57 million for publicly beneficial purposes
(this amount is CZK 75.13 million more than required by law).
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S A Z K A , a.s.
Annual Report 2009
Cultural projects
SAZKA Prizes
In 2001, SAZKA, a.s. introduced its SAZKA Prizes to promote Czech culture. The prizes are awarded annually in the fields of drama,
film, dance and music.
SAZKA and Společnost pro Divadelní noviny Prizes for Creative Performance
The prizes for creative performance awarded jointly by SAZKA and its partner Společnost pro Divadelní noviny were launched
in 2001 in the following categories: alternative drama, plays, musicals, dance and ballet.
In 2009, Kateřina Burianová received the top prize for her role as Violet Weston in the National Theatre’s production of “August:
Osage County”.
SAZKA Prize for Discovery of the Dance Talent of the Year
The SAZKA Prize for Discovery of the Dance Talent of the Year has been awarded since 2002. The project’s partner is Tanec Praha,
the international festival of contemporary dance and mime.
The winner of the SAZKA Prize for Discovery of the Dance Talent of the Year in 2009 was Kateřina Stupecká for her performance in
Da Capo.
SAZKA Prizes for Best Unproduced Screenplay
The SAZKA Prizes for Best Unproduced Feature Film Screenplay have been awarded since 2003. This project’s partner is Vachler Art
Company in the framework of the Czech Lions (the awards of the Czech Film and Television Academy).
In 2009, the prize was awarded to Petr Jarchovský for his Kawasaki’s Rose film script. A movie was soon filmed according to the
winning script and won over audiences in the Czech Republic and at international festivals (e.g. Berlinale).
Social projects
Our Child Foundation
The aim of the foundation is to help children in a crisis, to promote children’s rights, and to ensure observance of the Convention on
the Rights of the Child in the Czech Republic.
SAZKA, a.s. has been a supporter of the Our Child Foundation since 1997; the Company makes a regular annual donation to this
foundation, which has amounted to CZK 500,000 since 2002.
Health care
Bone Marrow Transplant Foundation
The Bone Marrow Transplant Foundation is a renowned charity which collects money for special equipment required at highly
specialized centres, such as facilities for the storage of live cells, blood derivative separators and devices for precision diagnostics,
and for the establishment of a Czech National Register of Bone Marrow Donors. SAZKA, a.s. has supported the Bone Marrow
Transplant Foundation since 1996.
Since 2002, SAZKA, a.s. has provided the foundation with a million crowns a year and is its general partner.
36
S A Z K A , a.s.
Annual Report 2009
Educational projects
SAZKA FOUNDATION
In 2002, SAZKA, a.s. set up the SAZKA FOUNDATION, the mission of which is to support education in the Czech Republic by
awarding scholarships and grants to projects focused on the quality education of children and young people, especially in the fields of
science, technology, art, and culture, and to support gifted young people and the development of talented children. Besides education,
the SAZKA Foundation is keen, in the future, to set its sights on health care (support for programmes aimed at improving the lives of
patients with leukaemia and other blood diseases and tumours) and welfare (support for projects aimed at abused, disabled and
abandoned children).
SUPPORT OF RESPONSIBLE GAMING
SAZKA, a.s. purposefully seeks to promote responsible gaming and ethical principles in the betting and lottery industry. Its activities
in this field are based on the recommendations of international lottery organizations, especially European Lotteries and the World
Lottery Association.
One of the priorities pursued by SAZKA, a.s. in the field of responsible gaming is to prevent underage gaming by supporting the
relevant legislation and implementing specific measures in relations with business partners and agents.
As a member of the Association of Odds Betting Operators (APKURS), in 2008 SAZKA, a.s. adopted the Declaration of Social
Responsibility, defining principles of social responsibility, rules on responsible betting, rules on community relations, specific projects
within the framework of social responsibility, rules for the location of establishments and terminals, as well as rules to prevent
access by minors and gambling addiction.
The Company is also a signatory to the Code of Ethics, summing up the APKURS goals, values and rules for responsible betting,
which includes a Code of Practice on the use of public information services for the dissemination of betting services.
In the context of APKURS, SAZKA, a.s. has reaffirmed its adherence to European Responsible Gaming Standards and supported the
Rubicon project for children and students, which draws attention to the ban on access to gambling for minors and raises legal
awareness of this ban.
The Advertising Standards Council, an association of advertisers, advertising agencies and media aimed at self-regulation in
advertising, adopted – on the joint initiative of SAZKA, a.s. and the Association of Odds Betting Operators – an amendment to the
Code of Advertising Practice, under which advertising to promote lotteries and other similar games by entities not licensed for such
activities under legislation in force in the Czech Republic will be a breach of the Code.
SAZKA, a.s. is a signatory to the Code of Conduct on Sports Betting approved by the EL General Assembly. More than thirty EL
members have undertaken to comply with the objectives of this Code. The Code’s primary objectives are to combat sport-related
corruption and money laundering, and to promote responsible gaming, sporting values, and sports ethics. These objectives should be
met by monitoring special and suspicious events and by an early-warning system in cooperation with UEFA.
In 2009, the activities carried out in this area by SAZKA, a.s. included:
– responsible gaming activities on the Internet and in relations with agents
– ensuring the availability of information concerning responsible gaming on the Company’s website and in other corporate materials
– the presentation of valid legislation, principles of responsible gaming and ethics in the betting and lottery industry on the
Company’s website and in other corporate materials
– responsible gaming activities carried out by the industry association APKURS
37
S A Z K A , a.s.
Annual Report 2009
– presentations of activities carried out in support of responsible gaming and ethical principles in the betting and lottery industry at
meetings of representatives of bookmakers with the media, and at a seminar held at the Chamber of Deputies of the Parliament of
the Czech Republic
– support for the APKURS proposal that the new lottery law should include a code of ethics, adopted against a background of
collaboration between various industry associations, which governs the obligations of operators of betting games and lotteries in
the field of self-regulation
– responsible gaming activities carried out internationally within the European Lotteries and the World Lottery Association
(conferences, seminars, ...)
– presentations of activities in support of responsible gaming and ethical principles in the betting and lottery industry during debates
accompanying the preparation of the new lottery law, including a proposal for the mandatory identification of customers and the
introduction of “player cards”
– involvement in issues related to the protection of the market from the loss of revenues intended for public causes and the
prevention of activities by illegal or fraudulent entities.
SAZKA, a.s. Ten Rules of Responsible Gaming
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Betting, lotteries and games are a legal branch of the entertainment industry operating in a regulated environment.
Betting is based on the free, qualified and informed decision of any individual over the age of eighteen.
Regard betting as entertainment, not as a means of instant enrichment.
Play to have fun. Never wager more than you can afford and never bet to recoup losses.
Be prepared to win, be prepared to lose.
Make sure you keep your level of entertainment and excitement under control – keep track of the time, the amounts in play, and
your wins and losses.
It all depends on chance and fortune – don’t believe tricks, fraudulent instructions and systems.
Study the pros and cons of each game. Choose the games that suit you best.
Adhere to the law, study the rules of the game and respect them. Keep to the rules of the betting company and gambling centre.
Bet and gamble only in places where gaming takes place legally in accordance with clear, specific rules.
MARKET POSITION
Betting and lottery industry in 2009
The betting and lottery market is part of the entertainment industry. In 2009, the general trend of an overall rise in the gaming and
betting market continued, although the market underwent gradual transformation as the year wore on. There was a major turning
point in the sports betting segment in January, when the first five Czech companies, including SAZKA, a.s., started operating online
odds betting. This was the trigger for the development of the whole segment and placed Czech companies on an equal footing with
foreign competitors.
In the field of number lotteries and instant lotteries, SAZKA, a.s. remains the market leader in the Czech Republic. It is one of the
largest bookmakers for sports betting, despite the keen competition. On the market of technical games, comprising video-lottery
terminals and central lottery systems with interactive video terminals, in 2009 there was a rise in interest in more modern
technological apparature as recently this area has reported the largest momentum of all the segments monitored. Authorization for
central lottery systems with interactive video-terminals is being granted to other entities who do not want to lose their privileged
position on the market in gaming machines – there are now 45,000 video-terminals on the market.
The economic crisis hit the slot machine and casino segments particularly hard. Thanks to the development of online gambling, the
crisis had no effect on odds betting. Other segments were not affected either.
38
S A Z K A , a.s.
Annual Report 2009
Economic market indicators in 2009
Foreign online operators, offering illegal betting to the Czech public, continued to make further inroads into the sports betting
segment; in response, the Ministry of Finance of the Czech Republic permitted the first five Czech companies to start operating odds
betting online in December 2008. The highest growth dynamics, however, were reported by technical games, thanks in the main to
the rapid development of video-lottery systems which, in certain respects, have replaced traditional gaming devices.
According to figures released by the Ministry of Finance of the Czech Republic, betting games and lotteries in the Czech Republic
reported revenues of CZK 32.46 billion in 2009; while this sum is higher than in 2008, the growth has slowed down dramatically.
In 2009, the market grew by 8.3%, as opposed to 23.1% in 2008.
CZK 3.74 billion – CZK 485 million less than in 2008 – was channelled into the national budget and municipal budgets in the form of
local taxes, administrative fees and state oversight charges from the whole of the gaming market in 2009.
CZK 3.31 billion was used for good causes; again, this is a year-on-year decline (by CZK 142 million). The highest amount was
contributed by the technical game segment (CZK 1.48 billion), followed by lotteries (CZK 0.72 billion), although in terms of gaming
revenue they reported only a third of the revenues generated by the gaming machine segment.
The highest gaming income in 2009 was reported by technical games, i.e. CZK 12.32 billion (50.3% growth). The second highest
gaming revenue, CZK 12.15 billion, was generated by gaming machines, although there was a 10% decline here caused by the crisis
and the growing competition in technical games. Odds betting also recorded modest growth in revenue (by 5%). Other segments
(lotteries, casinos and bingo) reported a decline in revenue in 2009.
Structure and size of the betting and lottery industry (gaming income)
in the Czech Republic, 2001–2009 (CZK billions)
35
30
25
20
Other
15
Odds betting
10
Lotteries
Casinos
39
S A Z K A , a.s.
Annual Report 2009
2009
2008
2007
2006
2005
2004
2003
2002
0
2001
5
Gaming
machines
Revenues in individual gambling market segments net of winnings (CZK billions)
Gaming machines
Casinos
Lotteries
Odds betting
Bingo
Technical games
Total
Year-on-year growth index
2001
2002
2003
2004
2005
2006
2007
2008
2009
8.82
2.24
3.11
0.96
0.07
0.34
15.53
1.052
10.30
2.26
3.31
1.20
0.06
0.58
17.71
1.140
11.04
2.11
3.48
1.09
0.06
1.12
18.89
1.067
11.94
2.16
3.08
1.48
0.06
1.71
20.43
1.081
12.52
1.97
3.56
1.34
0.06
2.15
21.61
1.058
11.61
1.93
3.93
1.48
0.05
2.88
21.88
1.013
12.53
1.91
3.68
1.87
0.05
4.32
24.36
1.113
13.60
1.82
3.85
2.46
0.05
8.19
29.98
1.231
12.15
1.71
3.67
2.60
0.01
12.32
32.46
1.083
MARKETING STRAT EGY IN 2009
Marketing Strategy in 2009 – lotteries
– Launch a fully-fledged loyalty programme for all players
– Continue implementing the project for the uniform furbishing of outlets
– Provide betting through a new sales channel – the Internet
– Provide marketing support for Sportka in the form of two premiums of CZK 70 million and a special draw to mark the 53rd
anniversary of the founding of SAZKA, a.s.
– Provide marketing support for the Euromillions betting game
– Provide marketing support for Lucky 10 and Royal Game
– Introduce the new instant lotteries MEGA, ELDORADO and Lucky Numbers IV
– Introduce five new games in the STARPORT video-lottery system
– Hold regular Sazka Specials
– Conduct marketing surveys of products and the market environment
– Expand the network of establishments where STARPORT IVT terminals are deployed
– Offer players fun versions of classic games in an online casino
40
S A Z K A , a.s.
Annual Report 2009
COMPANY LOTTERY PRODUCTS
Number lotteries
– Sportka (Lotto 6/49), draws held on Wednesdays and Sundays
– Euromilióny (Euromillions)
– Šance (Chance), draws held on Wednesdays and Sundays – a betting add-on game linked to Sportka and Sazka
– Štastných 10 (Lucky 10) and Královská hra (Royal Game)
– Šance milion (Million Chance) – a betting add-on game linked to Lucky 10
– Keno
– Kostky (Dice)
– Lucky Lines
Sports betting
– Sazka
– SAZKA TIP (odds betting)
– Sazka výběr (Sazka Select)
– Skóre Plus (Score Plus)
– Sázka na vítěze (Bet on the Winner)
– e-SAZKA (online odds betting)
Instant lotteries
– Šťastná čísla III (Lucky Numbers III)
– Šťastná čísla IV (Lucky Numbers IV)
– Zlatá cesta (Golden Way)
– Štěstí (Fortune)
– Štěstí 2 (Fortune 2)
– Horoskop (Horoscope)
– Karty (Cards)
– Úsměv (Smile)
– VEGAS!
– MEGA
– ELDORADO
STARPORT system
– Progresivní jackpot
(Progressive Jackpot) – STARPORT Jackpot
– Štastná linie (Lucky Line) with Jackpot
– Penalta (Penalty)
– Golden Track
– HI-LO
– Golden Scratch
– Golden Saddle
– Viva Keno
– King’s Crown Poker
– On the House
– Infinity
– Ruleta (Roulette)
– American Roulette
– Diamond Dice with Jackpot
– Diamond Poker with Jackpot
– MAXI
– Pentagram
– Passion Fruit
41
S A Z K A , a.s.
Annual Report 2009
– Wild Fire
– Ye Ha Hai
– Jackpot Party
– Guys & Dolls
– Chinese Roulette
– Solstice Gold
– Diablos Gold
– Dragon
– Hot Hot Hot
– Magic Spin
– Jacks or Better
– Risk
– Aztec It or Leave It
– Party Fruits
– Flamin Fruits
– Double Bubble
– Fruits Galore
New products
– Online odds betting as of 5 January 2009
– Sportka Spring Premium 2009 as of 23 March 2009
– MEGA instant lottery as of 17 April 2009
– ELDORADO instant lottery as of 3 July 2009
– Aztec It or Leave It video-lottery as of 27 July 2009
– Party Fruit video-lottery as of 27 July 2009
– Sportka Winter Premium 2009 as of 5 October 2009
– Flamin Fruits video-lottery as of 19 October 2009
– Double Bubble video-lottery as of 19 October 2009
– Fruits Galore video-lottery as of 19 October 2009
– Šťastná čísla IV (Lucky Numbers IV) instant lottery as of 27 November 2009
– DIAMANT (DIAMOND) instant lottery as of 20 January 2010
Terminated products
– Fortune instant lottery as of 31 May 2009
– Sportka Spring Premium 2009 as of 21 June 2009
– Golden Saddle video-lottery as of 27 July 2009
– Guys and Dolls video-lottery as of 27 July 2009
– Golden Way instant lottery as of 31 August 2009
– Golden Scratch video-lottery as of 19 October 2009
– Golden Track video-lottery as of 19 October 2009
– Hi-Lo video-lottery as of 19 October 2009
– Infinity video-lottery as of 19 October 2009
– King’s Crown Poker video-lottery as of 19 October 2009
– Lucky Line video-lottery as of 19 October 2009
– On the House video-lottery as of 19 October 2009
– Penalty video-lottery as of 19 October 2009
– Viva Keno video-lottery as of 19 October 2009
– Lucky Numbers III instant lottery as of 31 November 2009
– Sportka Winter Premium 2009 as of 30 December 2009
– Jackpot Party video-lottery as of 31 December 2009
42
S A Z K A , a.s.
Annual Report 2009
REVENUES IN 2009
Lotteries
Total revenues (CZK)
Revenues (including subscriptions and handling fees) were as follows in 2009:
Number lotteries
Euromillions
Keno
Sportka
Chance
Lucky 10
Million Chance
Lucky Line
Dice
Total
230,186,550.00
142,198,830.00
4,921,667,796.00
324,315,710.00
1,432,019,950.00
67,276,450.00
16,083,610.00
18,233,230.00
7,151,982,126.00
Sports betting
Sazka
Sazka Select
Score Plus
Bet on the Winner
IVR Betting
Online betting
Total
18,074,312.00
142,417,683.00
158,151.00
152,523.00
4,448,090.00
591,621,886.00
756,872,645.00
STARPORT
232,346,813.50
Instant lotteries
Golden Way
Lucky Numbers III
14,088,300.00
37,783,480.00
Mega
Vegas!
ELDORADO
Cards
Horoscope
Smile
Fortune
Fortune 2
Lucky Numbers IV
Total
25,289,790.00
36,060,040.00
17,938,800.00
19,257,380.00
49,859,600.00
5,309,870.00
162,220.00
9,272,040.00
2,644,560.00
217,666,080.00
Carried forward from 2008
Discontinued lotteries
12,644,890.00
230,310,970.00
Total volume of stakes, including carry-overs
43
S A Z K A , a.s.
Annual Report 2009
8,371,512,554.50
WINNINGS IN 2009
In 2009, SAZKA, a.s. paid out CZK 4,421.5 million in prize money. The total amount of winnings paid out since the Company’s
inception passed through the CZK 90 billion threshold in August 2009. The amount paid out in prizes is increasing monthly by
CZK 300–350 million.
The highest individual prize in the history of domestic betting games and lotteries amounted to CZK 112,931,592, which was paid out
in the Sportka number lottery in 2003. In 2002, two players shared the highest jackpot in the Sportka number lottery, which
exceeded CZK 148 million.
In betting games and lotteries operated by SAZKA, a.s. in 2009, in more than 70 cases the winnings came to more than a million
crowns; 28 players won prize money in excess of CZK 10,000,000. Therefore, on average, a new millionaire walked away from the
SAZKA, a.s. headquarters every five days and a new multimillionaire every two weeks. The high winnings in 2009 mainly came from
the number lotteries Sportka and Lucky 10 with the add-on Chance and Million Chance games.
The record prize last year, of CZK 80,920,289 was documented at the end of August 2009; the winning ticket was handed over in
South Bohemia. The winner picked his own numbers, including the Chance numbers, and filled in all ten columns on the ticket. This
win also featured in the chart of the Company’s all-time highest winnings. It ranked sixth among the highest ever prizes in the
history of domestic betting games and lotteries. The second highest win last year ranked tenth in the all-time chart. The average first
prize in Sportka in 2009 was nearly CZK 22.2 million.
The week from 7 to 13 September 2009 was extremely successful for players; in this period, the Sportka number lottery jackpot
came up five times – once in the first draw and twice in the second draw on Wednesday, in the special game on Friday, and in both
the first and second draw on Sunday. In two cases, the winning ticket was handed over in Central Bohemia; the other prizes made
their way to North, West and Eastern Bohemia.
In June 2009, the Lucky 10 game also reported its highest ever win, amounting to CZK 40 million. In this case, the winning ticket
was handed over in North Moravia.
One punter won CZK 2.799 million when, before the Formula 1 series began, he bet CZK 27,880 on a Jenson Button and Brawn GP
victory at the high odds of 1:100.00.
Top ten winnings in 2009
week
35.
14.
45.
5.
48.
53.
24.
43.
21.
5.
game
day
draw
date
prize
Sportka
Sportka
Sportka
Sportka
Sportka
Sportka
Lucky 10
Sportka
Sportka
Sportka
Sunday
Wednesday
Sunday
Sunday
Sunday
Wednesday
Friday
Sunday
Sunday
Sunday
2
2
2
1
1
2
–
1
1
2
30. 8. 2009
1. 4. 2009
8. 11. 2009
1. 2. 2009
29. 11. 2009
30. 12. 2009
12. 6. 2009
25. 10. 2009
24. 5. 2009
1. 2. 2009
CZK 80,920,289
CZK 72,384,867
CZK 59,173,023
CZK 50,975,504
CZK 47,613,925
CZK 41,580,181
CZK 40,000,000
CZK 37,091,892
CZK 35,504,121
CZK 32,966,495
Note: There were two prizes of CZK 32,966,495 in the second draw in Week 5.
44
S A Z K A , a.s.
Annual Report 2009
Top ten winnings 1956–2009
week
game
day
draw
date
prize
Wednesday
Sunday
Sunday
1
1
1
34.
35.
44.
14.
14.
Sportka
Sportka
Sportka
Christmas Comet
Sportka
Sportka
Sportka
Sportka
Sportka
Sunday
Sunday
Wednesday
Sunday
Sunday
2
2
2
2
2
2003
2005
2005
2001
2008
2009
2008
2002
2002
CZK 112,931,592
CZK 106,034,128
CZK 103,639,648
CZK 100,000,000
CZK 82,314,840
CZK 80,920,289
CZK 78,150,917
CZK 74,291,514
CZK 74,291,514
14.
Sportka
Wednesday
2
2009
CZK 72,384,867
34.
27.
44.
One of the findings in the survey “Perceptions of Wealth in the Czech Republic”, conducted in 2009 by GfK Czech, s.r.o., revealed that
most of the inhabitants of the Czech Republic consider betting and lotteries to be an acceptable and fair source of wealth. Betting and
lotteries are regarded as a possible way of becoming rich by almost two thirds of the adult population of the Czech Republic.
A win bringing the owner wealth is regarded as an amount up to CZK 5 million by half of the respondents, CZK 10 million by almost
three quarters, and at least CZK 50 million by a sixth of respondents.
Regarding the use of prizes, most people would invest in housing (55%), leisure – especially travel (35%), children or the family
(32%) and material goods, especially cars (32%). Women generally think more about the family and children, savings and charitable
purposes; men show more interest in material goods and investments. For younger people, significant items are housing, shopping
and leisure activities; older people refer more often to the family or charity. As the amount of winnings rises, so does the number of
people who would support their child and family, invest or make a donation to charity.
People in the Czech Republic most often associate the biggest prizes with the Sportka number lottery (55%) and roulette
in casinos (15%).
SERVICES FOR WINNERS
SAZKA, a.s. provides prizes to the winners of its betting games and lotteries swiftly and securely and guarantees that they may
remain anonymous if they so wish in accordance with Act No 202/1990 on lotteries and other similar games. The Company also
provides expert assistance in opening accounts, a service which is beyond the scope of the law.
Conditions for the payment of winnings
Winners must produce the slip confirming their bet or their correctly scratched card when they claim their prize. For prize amounts of
more than CZK 400,000, winners are obliged to produce their valid identity card for verification and confirm receipt of the winnings
by signing the ticket or bet confirmation slip.
Venues for the payment of winnings – points of sale
For winnings of up to CZK 1,000, the amount is paid out immediately at any sales location. Winnings of up to CZK 100,000 can be
paid out at any sales location, subject to agreement between the prize winner and the sales location management.
Venues for the payment of winnings – regional sales locations
Payments of winnings from CZK 1,000 to CZK 400,000 are made at designated regional sales locations or directly at SAZKA
headquarters.
45
S A Z K A , a.s.
Annual Report 2009
Venues for the payment of winnings – SAZKA, a.s. headquarters
Winnings of more than CZK 400,000 are paid out at the headquarters of SAZKA, a.s., located at K Žižkovu 851, Praha 9 – Vysočany.
At the Company’s headquarters, amounts of up to CZK 500,000 are generally paid out immediately, in cash should the winner so
wish. SAZKA, a.s. pays out winnings of up to CZK 2 million by bank transfer to the winner’s account within 30 days. Winnings of
more than CZK 2 million are transferred to the winner’s bank account no later than 60 days after being claimed as required by law.
In the event of a higher amount SAZKA, a.s. usually pays out an advance of CZK 400,000 immediately at the winner’s request.
Taxation of winnings
Winnings in the games operated by SAZKA, a.s. are not subject to income tax.
Guaranteed anonymity
SAZKA, a.s. rigorously adheres to the duty of protecting the confidentiality of the personal data of game and lottery winners in
accordance with Act No 202/1990 on lotteries and other similar games, as amended. Therefore the Company guarantees the
anonymity and safety of winners.
SALES POLICY
In 2009, the Company started modernizing the communications technology used by SAZKA terminals in order to ensure faster connections
and expand the functionality of the terminals. Parallel to the conversion of communications technology, processes were implemented in the
SAZKA sales network leading to the improvement and development of the sales network of SAZKA terminals. These processes were aimed
at promoting and presenting SAZKA, a.s. and increasing the level of convenience enjoyed by players. The greatest emphasis was placed on
points of sale in the networks of retail chains of hypermarkets, supermarkets, shopping centres and petrol stations.
In 2009, the STARPORT project focused, in addition to standard types of outlets (arcades and bars), on the development of the petrol
station segment, where there was an increase in the number of installations.
Another priority in establishing and improving business cooperation is to ensure a comprehensive range of SAZKA products and
services at points of sale.
Based on the long-term business relationships fostered with the head offices of retail chains and petrol station networks, we expect
further cooperation in these types of establishment in 2010.
Number of online terminals by region as at 31 December 2009
Region
Total
Central Bohemia
South Bohemia
West Bohemia
North Bohemia
East Bohemia
South Moravia
North Moravia
Sum total
1,484
464
566
860
751
1,206
1,197
6,528
POINTS OF SALE
The structure of SAZKA sales outlets comprises establishments of various types. Besides branches of the Czech Post Office and
newsagents, which account for the majority of points of sale, other outlets making up the sales network include petrol stations,
shopping and entertainment centres, hypermarket and supermarket chains, bookmakers, restaurants and grocery stores.
46
S A Z K A , a.s.
Annual Report 2009
This wide range of different types of points of sale guarantees maximum convenience and availability of SAZKA, a.s. services and
products for customers throughout the operating hours of the system.
Number of online terminals by type of outlet as at 31 December 2009
Type of outlet
Total
Bar, nightclub
Travel agency
Pastry shop
Petrol station
Drugstore
Electrical supplies
Photolab
GECO TABAK
GSM
HDS Retail
Gaming arcade
Toy shop
Bookshop
Florist’s
Refreshments
Greengrocer’s
Stationery shop
Post office
Grocery store
Industrial goods
Restaurant
Bookmaker’s
Services
Bureau de change
General store
Sport
Newsagent’s
Textile store
Late hours grocery store
Video rental store
Sum total
60
6
43
773
46
36
4
221
12
49
31
10
26
24
34
8
44
2,142
289
31
211
242
67
18
225
9
1,724
31
52
60
6,528
Cooperation with the Czech Post Office
The Czech Post Office is a long-term and strategically important business partner of SAZKA, a.s. As at 31 December 2009,
2,142 terminals were in service in the Czech Post Office’s sales network.
Czech Post Office branches where SAZKA terminals have been installed offer SAZKA’s lottery and non-lottery products, apart from
odds betting, the payment of money orders and e-Payments.
In 2009, negotiations were held on mutual cooperation and the further development of this collaboration. The promotion and
presentation of SAZKA products in the Czech Post Office’s sales network is of a sound standard.
47
S A Z K A , a.s.
Annual Report 2009
WORK WITH AGENTS
In 2009, efforts to streamline the sales network of terminals throughout the Czech Republic continued. Outlets are gradually being
fitted with uniform furbishing in order to enhance customer comfort and improve the presentation of SAZKA products.
Individual outlets are assessed in the Outlet Evaluation project. The inspections included checks on the labelling of the point of sale,
the advertising of the Jackpot, the adequate availability of game plans, the display of tickets, and ticket sales.
In 2009, a project for the electronic distribution of information to agents was launched. A My Documents folder was set up for each
agent on the extranet, where up-to-date information regarding terminal operations, information about the Company’s lottery and nonlottery products and the agent’s financial reports were located. This electronic channel facilitates the more flexible and more efficient
transfer of information to agents.
Uniform Furnishings and Equipment for Outlets
In 2009, work continued on the project for the uniform furbishing of outlets. During the year, there were over 360 new installations,
meaning that, by 31 December 2009, 775 outlets had uniform equipment installed.
In response to market needs and new technologies, new uniform equipment components were developed which were included in the
range on offer.
Labelling of points of sale
The project for the labelling of SAZKA points of sale continued, resulting in large yellow orbs (ESO) being fitted outside and small
yellow orbs (ISO) being fitted inside further outlets. By 31 December 2009, approximately 3,000 ESOs and 3,000 ISOs had been
installed in the network of SAZKA outlets.
During 2009, we continued to offer benefits to partners related to the STARPORT gaming system. The basic benefits for agents,
depending on their type of business, are broken down into:
1. STARPORT promotional materials
2. STARPORT standard equipment
a) STARPORT jackpot display
The principal benefit of STARPORT standard equipment is the installation of electronic jackpot displays. They are used to indicate
the current STARPORT jackpot.
b) STARPORT LCD television
The STARPORT LCD television is a major feature in the promotion and support of sales. It is an LCD monitor fitted with a digital
tuner, enabling guests to watch any channel they like (depending on the type of signal received).
c) STARPORT barstools
These are a standard sales support feature distributed to outlets.
STARPORT menus
Another part of the STARPORT marketing concept, specifically sales support via promotional materials and uniform STARPORT
equipment, comprises STARPORT “menus”.
LCD screens
In 2009, more than 440 LCD screens were installed in selected specialized KENO outlets for customers to watch the draws of instant
games.
Further LCD televisions were installed in support of STARPORT product sales.
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S A Z K A , a.s.
Annual Report 2009
SAZKA POINT
400 SAZKA POINT terminal facilities were in service as a means of supporting customer services in 2009. A SAZKA POINT consists
of a PC, monitor, wireless Internet connection, and printer. This service is provided to customers free of charge.
Benefits of SAZKA POINT terminal stations:
– presentation of the products and services offered by SAZKA, a.s.
– ticket bookings via www.sazkaticket.cz
– access to online odds betting
– registration with Club SAZKA, account administration
– free printing of promotional and information materials
Call Centre
SAZKA, a.s. has operated a round-the-clock Call Centre since 2005. The task of the Call Centre is to provide consulting to all agents.
A single telephone number can be used to place orders, request repairs, handle claims and seek information and advice. The Call
Centre also provides information to agents via terminal messages, and replies to enquiries sent by e-mail.
The Call Centre is also frequently used for telemarketing purposes. Dispatchers contact outlets to monitor information and ticket
sales and guide terminal operators on how to perform correctly, etc.
The Call Centre currently fields over half the calls made to the Company; in 2009, between 13,000 and 15,000 calls were handled
every month.
SALES SUPPORT
In 2009, the traditional Sportka jackpot competition for agents was held. This is a traditional project to boost Sportka sales which
aims to promote this core product at the time of the Sportka Spring Premium and Sportka Winter Premium. Agents who were singled
out in a draw and who had presented the Sportka jackpot in accordance with the competition rules won a financial reward. The
project was again in line with our expectations; an evaluation showed it to have 90% effectiveness.
Another project implemented at outlets was Mystery Shopping; the aim was to check how terminal operators use the sales support
marketing offers displayed on the terminal screen. Based on the data collected, further steps will be taken to promote sales.
NON-LOTTERY ACTIVITIES
A characteristic feature of SAZKA, a.s. is its high proportion of non-lottery products and services. The extent of payments made
through its terminals in connection with non-lottery services has exceeded the sales volume of betting and lottery activities, although
these continue to be crucial for the Company’s profit.
In 2009, payments for lottery and non-lottery products via SAZKA terminals amounted to CZK 18.6 billion. Of this, sales of betting
and lottery activities came to CZK 8.4 billion and payments for non-lottery products stood at CZK 10.2 billion.
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S A Z K A , a.s.
Annual Report 2009
Payments for lottery and non-lottery products in 2009
(chart for illustration only)
1
1
2
2
Betting and
lottery sales
Non-lottery
sales
CZK 8.4 billion
CZK 10.2 billion
GSM credit top-up
This service was launched in April 2002 in cooperation with T-Mobile Czech Republic. In October 2002, Eurotel (now Telefonica O2
Czech Republic, a.s.) joined the scheme, followed in October 2004 by another operator, Oskar Mobil (now Vodafone).
In 2009, operator revenues from GSM credit top-up services via SAZKA terminals amounted to CZK 9.6 billion.
SAZKA TICKET
Another part of the SAZKA, a.s. portfolio of services since 2003 has been the SAZKA TICKET ticketing system. In 2009, over a
million tickets worth almost CZK 420 million were sold.
The SAZKA TICKET ticketing system consists of a website at www.sazkaticket.cz, terminals located in all regions of the Czech
Republic, a telephone call centre, and a box office in the O2 Arena. Between 2004 and 2009, five million tickets worth almost
CZK 2.3 billion were sold through the SAZKA TICKET system.
Sales module
This module makes it possible to keep track in real time of all processes of product orders, distribution, receipt, storage and sale,
and incorporates filters which can be set by region or type of sales outlet. In 2009, it was used to sell the SAZKA TIP magazine,
intended for those interested in odds betting.
Cash payments
This service was launched in July 2006 in cooperation with the CEZ Group and Česká podnikatelská pojišťovna, a.s. In October 2008,
it was extended to include customers of Veolia Voda Česká republika, a group comprising Pražské vodovody a kanalizace, a.s.,
Severočeské vodovody a kanalizace, a.s., VODÁRNA PLZEŇ, a.s., MORAVSKÁ VODÁRENSKÁ, a.s., Středočeské vodárny, a.s.,
1. SčV, a.s., and Královéhradecká provozní, a.s. In December 2009, further companies from the portfolio of Veolia Voda Česká
republika joined the scheme: SLAVOS, s.r.o., Vodohospodářská společnost Sokolov, s.r.o., and VODOSPOL, s.r.o.
For customers, this is a very convenient way of paying their regular bills (e.g. electricity, water supply and wastewater services, and
insurance premiums).
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S A Z K A , a.s.
Annual Report 2009
During 2009, other operators from the ranks of utility, telecommunication and financial companies were approached, and
negotiations are under way to engage in similar collaboration with SAZKA, a.s.
e-Payments
In June 2008, SAZKA, a.s. started marketing e-Payments (e-Platby), its new non-lottery product. The basic business idea of this new
activity is to enable the customers of online retailers (e-shop operators, vendors of services via the Internet, etc.) to pay for goods
ordered on the Internet or to recharge the electronic wallet they have with individual traders – web application operators – through
the network of SAZKA terminals.
This service is accessible to several companies that mediate this type of payment between the online seller and the end customer.
The first such company was MANUM, s.r.o., which operates the MANUM SuperCASH service. In 2009, KIT digital Czech, a.s. joined
the scheme with its KITcash service.
Club SAZKA loyalty programme
In 2008, SAZKA, a.s. decided to support the sale of its products by introducing a loyalty programme called Club SAZKA. This loyalty
programme is established on a points-based principle, under which customers earn points for purchases of SAZKA products.
On 28 January 2008, Phase I of the loyalty programme, linked exclusively to odds betting in the e-Sazka product, was marketed.
On 27 October 2009, Phase II was launched which, compared to the previous version, was extended to other SAZKA products of both
a lottery and non-lottery nature.
The principal additional features included in Phase II of the loyalty programme are:
– the creation of a new website at www.klubsazka.cz
– the opportunity to register with the loyalty programme via “Anonymous Registration”
– the introduction of the Club SAZKA Card
– a greater range of rewards via the e-shop system and Club SAZKA e-auctions
The underlying goal of building up a loyalty programme at SAZKA, a.s. is to cement the loyalty of regular customers and win new
customers, and by extension to increase SAZKA’s revenues from the sale of lottery and non-lottery products.
SAZKA, a.s. Expert Institute
SAZKA, a.s., as the largest domestic lottery operator, has its own expert institute. This means the company has its own resources,
independent of other bodies, to conduct regular inspections and draw up reports on scratch cards of a particular issue prior to
distribution and on disputed or suspect winning tickets. Expert assessments of scratch cards prior to distribution are required by the
Ministry of Finance of the Czech Republic; these assessments are necessary to check the required lottery parameters, including the
printing technology used by the manufacturer, which must comply with requirements to protect tickets from alteration or to prevent
winning symbols from being visible before the scratch surface is removed. The laboratory is also capable of examining other
documents, such as a betting slip, especially if there is a suspicion that information has been altered illegally.
As the facilities used by the SAZKA, a.s. Expert Institution are of such a cutting-edge standard, the company has decided to offer its
services actively to other public and private entities. Based on a decision taken by the Ministry of Justice of the Czech Republic, the
SAZKA, a.s. laboratory was registered in the list of institutions qualified to carry out expert activities in “miscellaneous technical
fields” in 2005. The scope of this expert authorization covers the technical examination of documents and verification of the
authenticity of legal tender.
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S A Z K A , a.s.
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Activities of the SAZKA, a.s. Expert Institute:
– analysis of changes to photographs in identity cards or passports, replacement of the original and security marks in examined
documents,
– inspection of changes to handwriting, overwriting or erasure, application of ink eraser in an examined document,
– analysis of micro-interventions in the surface of examined documents and analysis of the quality of printing,
– examination of the authenticity of banknotes, inspections of illegible stamps, damaged confirmations,
– non-destructive ink tests directly in documents, without the need to take samples (via the Raman effect).
PUBLICITY AND ADVERTISING STRAT EGY
In its publicity activities, the Company’s main focus in 2009 was on promoting the launch of online odds betting in the Czech
Republic, marketing the new SAZKA TIP brand, preparing and launching a new concept for an advertising campaign to promote the
Sportka number lottery, with an emphasis on advertising the current jackpot at the time of the Spring and Winter Premiums,
preparing communications activities for the electronic money project associated with the accession of a new business partner, and
preparing a new format for the televised draw programmes.
In 2009, a new series of commercials was prepared to promote the current Sportka jackpot; as usual, when the seasonal Premiums
were being run the Company reinforced communications on television in particular, backed up by radio commercials and print
advertising incorporated into our editorial pages. The new spots, produced on a budget, largely took the form of montage formats; the
main theme was the stylized response of animals to the high jackpot. The creativity of the campaign was rated highly in the trade
press and by the betting public. The same concept was used to promote the Sportka Winter Premium.
The granting of a licence by the Ministry of Finance to operate online odds betting was accompanied in early 2009 by an advertising
campaign to promote this product, offering a bonus for newly registered players as its main enticement. This campaign also
introduced the new brand of SAZKA odds betting – SAZKA TIP. A balanced communication mix was prepared; television and the
Internet were singled out as key media, backed up by radio and print advertising. In the second half of 2009, communications
focused on highlighting the incentive of no handling fees for those placing bets via SAZKA TIP.
During the spring, news brand were prepared for instant lotteries and instant games. The new logos and the names SAZKA LOS
(“Sazka Ticket”) and SAZKA EXPRES, including the whole visual context, became part of the SAZKA, a.s. graphics guide.
An advertising campaign to maintain sales of the Lucky 10 number lottery was run in September and October 2009. A new
advertising spot was prepared which drew on materials created for the new televised draw programmes; this campaign was timed to
coincide with the launch of the new-format draw programmes.
In 2009, the format of the televised draw programmes for the Sportka and Lucky 10 lotteries was transformed. The programmes
were given new modern graphics and music, and the draw takes place against a new decorative setting. The way the winning
numbers and the jackpot expected for the next draw (Sportka) are presented is a revolutionary development.
Television complex
The television complex of cutting-edge technological specifications that has been constructed at SAZKA headquarters
celebrated 14 years of successful television production in 2009. The complex was created to provide a completely safe
environment, under financially advantageous conditions, for the production of televised draw programmes and their transmission
via a telecommunications link.
The television complex has three television studios.
Studio One, with the requisite audio and visual system and wide lighting range, is used exclusively for the production of the
company’s regular number lottery draw programmes Sportka, Chance, Lucky 10, Million Chance, and Euromillions. This studio is
fitted with 16 static television cameras and one camera on a remote-controlled robotic mobile tripod.
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S A Z K A , a.s.
Annual Report 2009
The modern television studio design with a large glass security partition allows fans of the draws and other members of the viewing
public to watch the technical preparations, the rehearsal, the filling of the draw machines and the entire course of the draw from a
neighbouring atrium.
In 2009, after eight years of the same format, new digital television techniques were used to change the graphics and presentation of
the televised Sportka and Lucky 10 draw programmes. We made these changes to keep up with the global trends in the presentation
of draw programmes.
Studio Two, with its layout, four cameras, modern television and sound engineering technology, and lights, can be used to produce a
wide range of different television programmes for the Company or for external clients.
Studio Three has four television cameras and is fitted out with a modern television and sound system. It was built as a universal
studio intended primarily for the production of televised draws by SAZKA, a.s. The lighting system and equipment include modern
electronics and essential lighting effects. This studio also has a large glass security partition so that viewers can watch the
production of television programmes from the atrium.
The national public-service television channel CT1 broadcasts the draw programmes Sportka Wednesday, Sportka Sunday, Chance,
Lucky 10, and Million Chance, and every Friday the televised Euromillions lottery.
The popular programme Recipe Book (Receptář) is produced here for PRIMA TV. The T-Music programme is recorded here for TV Óčko.
NOVA Sport broadcasts Sport-plus and advertising spots with the current Sportka Jackpot (and where appropriate Spring and Winter
Premium) and Eurojackpot from here.
The free capacity of the sound and video facilities, editing rooms and modern television technology is hired out to other TV entities at
reasonable rates.
The SAZKA television complex’s optoelectronic link with the modern O2 Arena television complex is also kept busy.
Competition for secondary schools (scratch card graphic design)
The tenth annual competition for the best scratch card graphic design in the 2008/2009 school year was extremely successful. The
competition attracted 684 entries from 237 students enrolled at 21 secondary schools. The best work was chosen on 20 March 2009
by a professional jury chaired by the sculptor Marian Karel.
First prize went to Lucie Bindíková, a student of the Secondary Technical and Art School in Opava, for her ticket design entitled
“Five-Six-Seven”. Her prize was CZK 20,000 in cash and a one-week stay in Montreal, Canada, including a study visit to
the state-of-the-art SGI printworks, which produces scratch cards. By winning the competition, she also won a financial gift of
CZK 100,000 for her school from SAZKA, a.s.
PUBLIC RELATIONS
Public Relations as a means of fostering a positive image in the eyes of the public is now an essential part of the corporate strategy
of any significant entity in the Czech Republic.
One of SAZKA’s main priorities in this field is to be viewed by the public as a Czech traditional, trustworthy company which can also
be described as modern and dynamic. A company that provides the fun and excitement of gambling in combination with great prizes.
And an organization that uses the proceeds from its lotteries to provide support to good causes in the fields of sport and physical
education, culture, art, education and health, thus abiding by its maxim “Helping Others Win!”
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S A Z K A , a.s.
Annual Report 2009
The Public Relations Department’s activities primarily involve communication and interaction with the professional and general
public in the Czech Republic and abroad. In this respect, it draws on conventional PR tools, such as press conferences, press
releases and declarations, corporate publications for punters, annual reports, and corporate profiles.
Separate communication projects were drawn up in 2009 for:
– the launch of SAZKA TIP online odds betting
– publicity for the SAZKA, a.s. General Meeting
– a discussion on the preparations for the new lottery law, including opinions on the various proposals
– projects refuting a hostile media campaign initiated by third parties
– the upcoming launch of the comprehensive Club SAZKA loyalty programme
– the presentation of the survey “Perceptions of Wealth in the Czech Republic”.
In its international communications, SAZKA, a.s. uses the platform offered by the official international lottery organizations
European Lotteries (EL) and the World Lottery Association (WLA), and lottery industry publications, such as International Gaming
& Wagering Business, International Gaming Business Expo, Public Gaming Research Institute, Public Gaming International and
Terri La Fleur, where it presents relevant information about the Company and its products.
As part of communications with the financial community and financial institutions, towards the end of 2009 a project was prepared
for an occasional electronic SAZKA, a.s. Newsletter.
Internal public relations are an equally important activity. This mainly entails communication with representatives of shareholders,
sports associations, sports organizations, and between Company employees and business partners. The main priority here is to
ensure that everyone is kept informed of the financial results, business plans and strategic intentions of SAZKA, a.s.
SAZKA, a.s. published 118 press releases, 78 of which were connected with the Company’s activities and 40 were linked to the
multipurpose O2 Arena. The most significant press information was also published in English in foreign lottery periodicals. The
Company held several briefings and press conferences.
Dispatching unit and communication with the public
In early 2009, the Dispatching Unit recorded its highest ever sustained traffic. This traffic was generated by the launch of SAZKA
TIP – online odds betting – and was reflected in an increase in the number of contacts handled by several hundred percent over the
normal levels of traffic.
A significant factor in communication with Club SAZKA members is the integration of the fully automatic routing of electronic
communications to the SAP CRM user interface of the operator assigned to this customer segment. After logging into their account,
Club SAZKA members are offered an enquiry form, which is submitted from www.klubsazka.cz and processed directly by the CRM
module of the SAP information system. There is also a complaint form that draws on similar procedure.
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S A Z K A , a.s.
Annual Report 2009
Internet
Communication over the web is one of the most important and most effective tools in public relations, and its significance and status
in the communication system continues to grow. SAZKA, a.s. has a wide range of Internet and Intranet pages at its disposal. The
website at www.sazka.cz includes a navigation guide linking to the holding’s other web presentations.
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Navigation guide at www.sazka.cz
The navigation guide at www.sazka.cz helps players work their way round the portfolio of games, lotteries and other services
offered by the SAZKA holding. The individual sites are managed by a single CMS. In January 2009, online odds betting was launched
on www.sazkatip.cz; at the beginning of the second half of the year, the SAZKA, a.s. loyalty programme site at www.klubsazka.cz
was launched.
www.sazka.cz
The official SAZKA, a.s. website has been in operation since 1997. This site is primarily used to present the results of draws and
games run by SAZKA, a.s., and to provide up-to-date information about the Company and its products. In the past sections were
complemented, for example, by recordings of televised draws, random-number generators, historical overviews of draw numbers,
various interactive elements, and an English language version.
The homepage is used to promote games, lotteries and other services offered by SAZKA, a.s. and to display the information most
frequently sought by visitors.
www.sazkatip.cz
The site for odds betting, initially at www.e-sazka.cz, now www.sazkatip.cz, was launched on 28 January 2008. Club SAZKA offers
players the chance to win trips and excursions. Competitions such as Ticket of the Week and Loser of the Week offer bonuses for
selected betting opportunities and for taking part in other marketing activities.
As of 5 January 2009, visitors to www.sazkatip.cz, after registering with Club SAZKA, can bet directly online – without having to go
to an outlet and without having to dial-confirm their wagers. At the end of 2009, live bets were launched for players.
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S A Z K A , a.s.
Annual Report 2009
www.tipovani.cz
The sport-oriented www.tipovani.cz website provides visitors with information geared in particular to the worlds of football and
ice-hockey, runs a betting-based competition, and offers a database of links, a discussion forum, messages for communication among
punters, and other services.
The nature of this server has placed it among the typical sports news portals, as the site is now viewed as a source of important,
up-to-date information. It also serves as a sports and odds betting guide.
www.sazkastarport.cz
The website www.sazkastarport.cz is designed to acquaint visitors with the STARPORT gaming system. Unlike other web
presentations of the SAZKA holding, this site is not primarily intended for the general public, but mainly for potential business
partners who would like to install STARPORT terminals in their gaming clubs and centres.
The www.sazkastarport.cz website offers basic information about individual games and the conditions of business cooperation; it
provides basic contact information for any potential customers.
www.sazkaticket.cz
The www.sazkaticket.cz website emerged as one of the products connected with the construction and operation of the multipurpose
O2 Arena. The site was put into operation at the end of 2003 and immediately attracted keen interest, especially in connection with
the World Ice-Hockey Championship.
The aim of the site is to generate online ticket bookings for events held at the O2 Arena and at other venues. The SAZKA TICKET
site provides information in English and Czech; there is a direct link from this site to the other websites run by the SAZKA holding.
www.o2arena.cz
The website at www.o2arena.cz is managed through the single CMS. Information is published in Czech and English and offers a
direct link to the ticketing portal www.sazkaticket.cz, where potential customers can book and buy tickets for specific events.
The www.o2arena.cz site is also used as a point of sale for sales of advertising space, the hire of skyboxes and club seats. The site
has a helpdesk which is frequently used by visitors. In August 2009, a VIP zone was set up as a customer service platform for
skybox and club seat lessors to book tickets and catering for shows held in the O2 Arena.
www.klubsazka.cz
On 27 October 2009, the website at www.klubsazka.cz was put into service. For customers, this site serves as a key information and
communications interface for the Club SAZKA loyalty programme. Clients can use the site’s broad portfolio of services – they can
register, access their Points and Cash Accounts, order products from the e-shop or put forward their rewards in an e-auction. All
information about Club SAZKA, including its fundamental document – the Club SAZKA Statutes – can be found here. Club SAZKA
membership is free, and Club members are rewarded with bonus points for purchasing SAZKA products SAZKA, or for taking part in
other marketing events that may be announced, in accordance with the Club SAZKA Price List.
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S A Z K A , a.s.
Annual Report 2009
www.kolby.cz
The website at www.kolby.cz contains basic information about this company, its history, wine-making areas and contact information.
The www.kolby.cz website includes an e-shop. Here, customers can order Kolby wine products, including gift packages and shipping,
with subsequent payment via the terminals of SAZKA, a.s. (or by conventional means).
In April 2009, the site was transferred to the single content management system and certain changes were made to the design.
www.kpsmedia.cz
The website at www.kpsmedia.cz contains basic information about KPS Media, a.s., its products, the technologies used, and services
rendered.
In April 2009, the site was transferred to the single content management system and certain changes were made to the design.
Intranet
The Intranet at SAZKA, a.s. is an important source of information for the employees of the holding. The Intranet is structured
alphabetically and thematically to facilitate fast, problem-free orientation. The site structure is determined by an alphabetical
catalogue and content distribution by department.
In particular, the Intranet contains internal documents (statistics, analyses, reports, directives, etc.), press releases, basic
information about the Company and its products, a form to book meeting rooms, electronic access to employees’ own accounts in the
company’s internal Savings Association, the menu in the canteen and the option of ordering a menu.
The structure of the corporate Intranet is being constantly developed to comply with the needs and requirements of intracompany
communications at SAZKA, a.s.
Extranet
The Extranet is the most important information channel created exclusively for business partners, i.e. agents. Here they can find
important contacts, news about events in the Company, and information on new products sold or services provided. The Extranet also
contains various regulations, terms and conditions, manuals, specimens of forms, as well as current and archive issues of the SAZKA
information bulletins. Agents traditionally show most interest in the discussion forum.
In December 2009, the Agent e-Communication appliance was launched on the Extranet. This has established a new distribution
channel that can be used to transmit information to agents electronically.
HUMAN RESOURCES
As in previous years, human resource management focused on supporting the accomplishment of the fundamental mission faced by
the Company and on consolidating its position in a competitive environment. A key task was to promote employee motivation, with
an emphasis on the Company’s major development projects.
The full-scale exploitation of the potential offered by employees, organizational units and project teams was supported by targeted
morale-boosting and material tools. The result is quite clearly successful cooperation with agents and the ability to cope with customers’
growing demands, which has paved the way for progressive developments in lottery activities and a rise in lottery revenues.
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S A Z K A , a.s.
Annual Report 2009
In keeping with generally binding legislation, a CEO Directive set out the procedure for situations where employees are temporarily
incapacitated and for checks on compliance by the Company.
Number of employees, qualification structure
The number of FTE employees at SAZKA, a.s. at 31 December 2009 increased by four employees compared to the same date of the
previous year. This increase was necessitated in order to have the capacity to deal with the newly launched online betting and the
comprehensive loyalty programme. This increase was also reflected in the physical headcount, including employees on maternity
leave and parental leave, of which there were 22 at the end of 2009. The numbers of employees at subsidiaries remained at more or
less the same level as in the previous year.
SAZKA, a.s.
Subsidiaries
Number of employees
31. 12. 2008
31. 12. 2009
FTE
Physical number
FTE
Physical number
466
487
196
204
470
492
195
206
A direct consequence of the economic crisis was a rise in the number of job-seekers on the labour market in 2009. Whereas, early on
in the year, the labour market was flooded with less skilled job-seekers, as of the mid-year point we noticed a growing number of
applicants with higher education and higher qualifications. The situation on the labour market meant that, when we needed to fill
vacancies, there was a large number of candidates with profiles meeting the qualification requirements. Nonetheless, in 2009 there
was low employee turnover again.
Compared with 2008, an evaluation of the staff structure by educational attainment reveals another decline in workers with lower
secondary education (by 0.23%) and an increase in degree-holders by 1.27%. The following chart provides an overview of the
composition of employees by educational attainment:
Employee structure by educational attainment
1
2
4
1
2
3
4
Lower secondary education
Upper secondary
vocational education
Upper secondary
comprehensive education
Higher education
2.04%
9.78%
61.50%
26.68%
3
Employee training
The Company continued to pay attention to the quality of the initial training of new employees within the scope of lectures by staff
from different departments and lectures addressing how to cope with special skills and how to integrate into specific workplaces. In
order to accelerate the integration of employees into specific positions, a lecture on the SAP information system, with practical
teaching about the system basics, was included in the initial training.
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S A Z K A , a.s.
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The intensification and development of skills concentrated on the further training and education of staff according to their specific
career focus (computer courses, seminars, and other mandatory professional training). Employees were able to draw on a system of
courses and training, with a particular focus on changes in laws and other regulations relating to the work they perform. In the field
of computer technology, employees were mainly trained in the use of individual SAP modules.
In the e-Learning section on the Extranet, an electronic course entitled Comprehensive Loyalty Programme for Terminal Operators
was posted, which was designed to repeat and highlight issues relating to new product control procedures.
The support of university distance learning for selected employees also continued. During the first half of 2009, 31 employees
attended university courses on the job. Of these, four completed their studies successfully. In the second half of 2009, nine
employees enrolled for full-time or part-time university courses. By the end of 2009, 35 employees were participating in university
studies.
Employee benefits and social programme
The Company’s employee benefits and social programme is a powerful employee motivation tool and also an important means of
stabilization. Following previous adjustments, which were mainly related to catering, cashless payments for services and the
reconstruction and modernization of the fitness centre, this form of reward was stable in the period under review.
The employee benefits were financed from Company costs and from social fund resources. These benefits help the Company to
maintain a favourable position among major employers. From the perspective of non-monetary remuneration, the long-term concept
of employee care development was based primarily on the following factors:
– a contribution to supplementary pension schemes and endowment insurance,
– a contribution to works catering,
– extended leave beyond the statutory scope,
– the arrangement of subsidized recreational stays at facilities for employees and their children,
– the provision of cheques to cover the cost of employees’ leisure activities,
– loans, social assistance, and help for those in crisis situations,
– bonuses to mark personal and professional anniversaries.
In 2009, SAZKA, a.s. contributed 3% of the basis of calculation to employees’ supplementary pension plans, and also made
contributions to their endowment insurance schemes.
These motivational tools were supplemented by other targeted activities in a bid to maintain a high-standard working environment
and solid performance by employees. In October 2009, a Company cr che with a capacity of twenty places was trialled; it is open to
all staff, including employees of subsidiaries. The main objective is to ease the return of employees to work during or after maternity
or parental leave.
The high quality of one of the employee benefits – catering – was confirmed in a poll held in March 2009 by the Human Resources
Section in collaboration with the meals supplier and catering facility operator – BESTSPORT, a.s.
Relations and cooperation with the trade union
Cooperation with the union in 2009 was traditionally non-conflictual and was based on the collective agreement. The trade union
actively contributed to the preparation of the Company nursery and to the deployment of other motivational tools, especially those
which negotiated under the collective agreement and financially secured by the social fund.
59
S A Z K A , a.s.
Annual Report 2009
In the spirit of the collective agreement, trade union representatives and members were kept informed of all conceptual issues and
the SAZKA, a.s. development programme; naturally, all obligations in relation to the trade union, as laid down in legislation of
general application, were fulfilled by the Company.
Consistency in achieving the objectives of the employee benefits programme was also reflected in cooperation in the preparation of
events for employees’ children, especially winter and summer camps, in the handling of the administration associated with loans
granted from the social fund, and in the accounting and distribution of vouchers for leisure activities. The participation of trade union
members in the organization of sports, cultural, and children’s events, including the management of employee issues and affairs
connected with the care of seniors, was indispensable.
INTERNATIONAL STANDING
Cooperation with foreign associations
In 2009, SAZKA, a.s. continued its international cooperation within European Lotteries (EL) and the World Lottery Association (WLA).
The Chairman of the Board of Directors and Chief Executive Officer of SAZKA, a.s., Aleš Hušák, maintained the active role of
SAZKA, a.s. within this organization in his capacity as a member of the EL Executive Committee.
In June 2009, the fifth EL Congress was held; at the general assembly in Istanbul Aleš Hušák was re-elected to the EL Executive
Committee. Friedrich Stickler, Deputy Chief Executive Officer of the Austrian lottery company Österreichische Lotterien, was elected
the EL’s new president for the next term of office.
Ales Hušák continued to hold the office of Chairman of the Public Policy Commission, responsible for themes related to the
prevention of money laundering, addiction and other criminal activities, inter alia, in terms of the role played by the state and lottery
regulators and the role played by lotteries and the EU. This commission’s work deepened cooperation with the EL office in Brussels.
At the meeting of the new EL Executive Committee in Brussels in September 2009, the new structure of the EL Association was
approved and Committees were set up to replace the current Commissions. Aleš Hušák was appointed Chairman of the Public Policy
Committee and was named the liaison officer for EL members from non-EU countries. The representative of the European Lotteries
at the World Lottery Association is Leon Losch; he assumed the role of defending our interests within the WLA Association.
The Czech Republic’s EU Council Presidency was used to support and deepen mutual relations between lottery companies within the
EL, EU institutions and members thereof. SAZKA, a.s. helped arrange a meeting between EL President Winfried Wortmann and
Finance Minister’s Secretary, Tomáš Zídek. SAZKA, a.s. also worked to ensure EL participation in the Conference “Gambling in the
Internal Market”, which took place in Prague on 16 and 17 June and was organized by the Ministry of Finance as part of the Czech
Presidency of the Council of the European Union.
The EL representation in Brussels, together with members of the EL Executive Committee, legal advisers and consultants
successfully liaised with representatives of the European Parliament and the European Commission.
International cooperation and delegation at SAZKA, a.s.
On 21 January 2009, SAZKA, a.s., in cooperation with the SAZKA Foundation, organized a lecture at the O2 Arena by Professor
Peter Collins, the Director of the Centre for the Study of Gambling at the University of Salford, UK, on responsible gaming. The
lecture met with great success. It was attended by employees and associates of SAZKA, a.s. and staff of the Ministry of Finance of
the Czech Republic.
60
S A Z K A , a.s.
Annual Report 2009
On 23 April 2009, the O2 Arena hosted a lecture for MBA students enrolled with the University of Utah. The students were
particularly interested in business management strategy. The group consisted of students representing the middle management of
companies predominantly from the US (as well as from China, Australia, Japan and India).
The series of foreign delegations at SAZKA, a.s. continued on 3 November with a visit by leaders of a Chinese lottery organization,
brokered through GTECH by the Ministry of Civil Affairs in Beijing. SAZKA headquarters hosted a presentation showcasing the
Company’s products. Delegation members were acquainted with the Company’s fundamental marketing tools and strategies.
On 4 December 2009, SAZKA, a.s. welcomed a delegation of students from the Thai lottery organization. They were particularly
interested in experience relating to the core business of SAZKA, a.s. and in the Company’s financial operations and strategy.
Other international activities
In 2009, employees of SAZKA, a.s. took part in a number of international events, seminars and training programmes on security,
accountability, innovation and development in various areas of our profession, organized by the EL and WLA, and programmes
organized by international associations which are important for obtaining experience and expertise and contribute to the profile of
SAZKA, a.s. on the international stage in the form of lectures and contributions.
In 2009, SAZKA, a.s. again worked with other international associations and publishers by sending contributions for their lottery
publications.
OUTLOOK FOR 2010
The macro-economic environment
Forecasts by most international institutions and analysts indicate that the world economy will follow a path of growth in 2010.
However, the high unemployment rate and inflation risks will remain a problem. High government deficits as a result of lower budget
revenue and high levels of social spending will be a major inflation stimulus.
The SAZKA, a.s. business plan for 2010 envisages GDP growth by between one and two per cent. Consumption in 2010 will remain
weak. Rising unemployment and low wage growth will hamper household spending. Another factor that will adversely affect
middle-class consumption is the increase in direct and indirect taxes approved in the austerity package. The approved central
government budget will therefore have a negative impact on GDP. Potential GDP growth in 2010 will depend on the replenishing of
stocks and increasing exports. Investments, which slumped in 2009, should begin to grow again in 2010. The ramifications of the
global financial and economic crisis and continuing bankruptcies among Czech businesses could lead to further restrictions on
lending by Czech banks and to a hike in interest rates.
Lottery law, tax laws
Fundamental issues for the further operations of SAZKA, a.s. and its shareholders in 2010 will be the debate on the new lottery law
and the implications of the new tax laws. The 1% VAT rate increase will have a negative impact on net profit and proceeds.
Therefore, it will be necessary for the shareholders of SAZKA, a.s. to explain the impact that some of the legislative proposals being
prepared will have on all areas of sport, and they will have to advocate a solution that will be efficient from the perspective of
effective gambling regulation yet will not have negative ramifications for the ownership rights of shareholders or for the funding of
sport in the Czech Republic.
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S A Z K A , a.s.
Annual Report 2009
Strategic investments and projects
Projects and investments have been prepared for 2010 that will ensure the Company’s further development:
– There will be a gradual transition to the use of the Internet (IP protocol).
– There will be a major innovation to Sportka, introducing a “SUPERJACKPOT”, which will form the basis for the further growth of
sales revenue generated by Sportka and add-on games.
– The dynamic phase of market penetration via the Comprehensive Loyalty Programme will continue in order to increase sales of all
gaming products. The system of benefits and customer accounts will attract customers and increase their motivation to gamble.
– There will be new entrants under the instant lottery brand.
– In 2010, the ticketing system will be improved and a Ticketing project will be prepared.
– The project for payments of goods and services purchased on the Internet will be extended to include other partners.
– The uniform furbishing of outlets will continue in order to react flexibly to new demands regarding the installation of new
technology (OCR readers, PIN Pads). Similarly, the installation of new LCD monitors in selected POS will continue.
Stabilization of the financial situation at SAZKA, a.s.
One of the Company’s most important objectives for 2010 is general mid-term stabilization of the financial situation at SAZKA, a.s. in
order to avoid the unpredictable behaviour of the banks, in order to fully ensure the Company’s liquidity, and in order to distribute
proceeds to shareholders at a level that will stabilize the financial position among shareholders.
A stabilizing element will be the agreement with the Club of Banks on committed credit facilities. In this light, we can assume that
obligations under bonds and other financial commitments of SAZKA, a.s. will continue to be duly met in 2010.
SAZKA, a.s. Business Plan for 2010
The SAZKA, a.s. Business Plan envisages the further development of the Company’s lottery and non-lottery operations.
The fundamental restructuring of measures will lead to savings in advertising and public relations, payroll and other overhead costs,
thus ensuring steady cash flow. These measures should also result in a further growth in profits from betting and lottery activities.
The development of non-lottery products and other taxed operations in 2010 will depend primarily on the exchange rate, which
affects the revaluation of the book value of bonds and hedging instruments. The increase in interest-rate margins will also be
reflected in the profit from taxed operations in 2010.
62
S A Z K A , a.s.
Annual Report 2009
SAZKA, a.s.
Supervisory Board
Report for 2009
In 2009, the following changes were made to the SAZKA, a.s. Supervisory Board: at the 25th Extraordinary General Meeting of
SAZKA, a.s. on 23 September 2009, Jaroslav Pekař was removed from his position as a member of the SAZKA, a.s. Supervisory
Board; at this General Meeting, Petr Baroch, President of the Czech Shooting Federation, was appointed as a member of the
SAZKA, a.s. Supervisory Board. As Jan Kašpárek’s five-year tenure in the SAZKA, a.s. Supervisory Board expired on 30 June 2009,
on 16 September 2009 the election of the member of the SAZKA, a.s. Supervisory Board representing SAZKA, a.s. employees was
held; Jan Kašpárek was re-elected. At the 26th Extraordinary General Meeting of SAZKA, a.s. on 19 November 2009, the
Vice-Chairman of the Supervisory Board, Ladislav Šustr, was removed from his position as a member of the SAZKA, a.s. Supervisory
Board; at this General Meeting, Ladislav Kotík was appointed as a member of the SAZKA, a.s. Supervisory Board. Subsequently, at
the 27th extraordinary meeting of the SAZKA, a.s. Supervisory Board, held on 19 November 2009, Jan Ulrych was elected as the new
Vice-Chairman of the SAZKA, a.s. Supervisory Board.
Meetings of the Supervisory Board were held regularly according to the work plan. In 2009, the Supervisory Board met at four
regular meetings and five extraordinary meetings. In 2010, the Supervisory Board has convened two regular meetings. At these
meetings, the members of the Supervisory Board acquainted themselves with the minutes of the meetings of the SAZKA, a.s. Board
of Directors and focused in particular on the company’s financial results in both its lottery and non-lottery operations, monitoring the
company’s receivables and investments. The Supervisory Board was kept informed of the business plans and activities of the parent
company and subsidiaries in the SAZKA holding. The Supervisory Board paid close attention to information about the financing of
SAZKA, a.s.
Meetings of the Supervisory Board were also attended, by invitation, by SAZKA, a.s. executives, who provided the Supervisory Board
with detailed background reports on the fulfilment of specific tasks within the business plan and budget. The Chairman of the
Supervisory Board regularly attended meetings of the SAZKA, a.s. Board of Directors.
The Supervisory Board of SAZKA, a.s. has reviewed the analysis of SAZKA’s financial performance in 2009 and its financial
statements (including the consolidated financial statements) for 2009 together with the corresponding auditor’s report and it hereby
states, based on its own inquiries, that the documents submitted to it present fairly the assets, liabilities, shareholders’ equity, and
financial situation of SAZKA, a.s. The Supervisory Board examined the proposed profit distribution.
The Supervisory Board of SAZKA, a.s. recommended that the 19th Annual General Meeting of SAZKA, a.s. approve the annual
financial statements of SAZKA, a.s. for 2009, prepared in accordance with IAS/IFRS international accounting standards and further
to the report by the auditor BDO Prima Audit s.r.o. of 21 April 2009 on its audit of the consolidated financial statements of the
SAZKA group prepared for the accounting period ended 31 December 2009 in accordance with IAS/IFRS international accounting
standards, the consolidated financial statements of the SAZKA group; it also recommended that the proposal of profit distribution be
approved and expressed its approval of the report on the activities of the Board of Directors of SAZKA, a.s. for 2009.
Pavel Kořan
Chairman of the Supervisory Board
63
S A Z K A , a.s.
Annual Report 2009
Supervisory Board Report for 2009
Contents of
Financial Section
Consolidated Financial Statements Prepared under IFRS 66
Consolidated Balance Sheet 66
Consolidated Statement of Comprehensive Income 67
Consolidated Statement of Changes in Equity 68
Consolidated Statement of Cash Flow 70
65
Financial Statements Prepared under IFRS 72
Separate Balance Sheet 72
Separate Statement of Comprehensive Income 73
Separate Statement of Changes in Equity 74
Separate Statement of Cash Flow 75
Information from the General Meeting 76
Important Post Balance Sheet Date Events 77
Definition of Terms 78
Contact Details of Central and Regional Centres 79
Identification Information 80
64
S A Z K A , a.s.
Annual Report 2009
Contents of Financial Section
The Independent Auditor’s Report
to the Shareholders of SAZKA, a.s.
On the basis of our audit, on 21 April 2010 we issued an auditor's report on the consolidated financial statements, which are
included in this annual report on pages 70 to 125, and our report was as follows:
“We have audited the accompanying consolidated financial statements of SAZKA, a.s., which comprise the consolidated balance
sheet as of 31 December 2009, the consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated cash flow statement for the year then ended, and a summary of significant accounting policies and other
explanatory notes.
Statutory Body’s Responsibility for the Financial Statements
The Statutory Body of SAZKA, a.s. is responsible for the preparation and fair presentation of these consolidated financial statements
in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and
maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in
accordance with the Act on Auditors and International Standards on Auditing and the related application guidelines issued by the
Chamber of Auditors of the Czech Republic. Those standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements give a true and fair view of the financial position of SAZKA, a.s. as of
31 December 2009, of its financial performance and its cash flows for the year then ended in accordance with International Financial
Reporting Standards.
Without qualifying our opinion, we would draw attention to Note 4 to the Financial Statements. Bank loans in the amount of
CZK 1,200 million were due during the first quarter of 2010 and CZK 450 million during the second quarter of 2010, whereas the
company does not have sufficient funding for settlement of all the bank loans in these terms. The company has ongoing negotiations
with its financial partners in order to arrange new model of “club financing”. Until the introduction of this finance model, the current
credit lines are being prolonged only for a period of one month, or week respectively. The ability of the company to continue its
activities depends to a considerable extent on these negotiations. As at the date of the issuing of this audit opinion the negotiations
with the banks had not been completed.”
We have audited also the consistency of the annual report with the above mentioned consolidated financial statements. The
management of the Company is responsible for the accuracy of this annual report. Our responsibility is to express a statement on the
consistency of annual report with consolidated financial statements. We conducted our procedures in accordance with the
International Standards on Auditing and related national application guidelines issued by Czech Republic’s Chamber of Auditors.
Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the information in annual
report, which describe matters which are subject of disclosure in financial statements are in all material aspects in compliance with
related consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion information in annual report is in all material aspects in compliance with the above mentioned consolidated financial
statements.
Prague, 20 May 2010
BDO Audit s. r. o., Certificate No. 018
Represented by partners:
Petr Slavíček
Certificate No. 2076
65
S A Z K A , a.s.
Ladislav Novák
Certificate No. 0165
Annual Report 2009
Consolidated Financial Statements
prepared under IFRS as at and for the year ended 31 December 2009
Consolidated Balance Sheet
As At 31 December 2009 (In thousands CZK)
Note
2009
2008
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.10
5.18
140,555
1,879,484
–
5,014
585,649
8,696,968
657,597
2,494
3,305
11,971,066
122,592
1,910,266
51,605
6,625
567,929
8,910,085
559,530
3,019
–
12,131,651
5.7
5.8
5.9
5.21
5.10
5.11
5.12
55,268
26,943
1,714,195
21,120
7,776
87,941
287,808
2,201,051
14,172,117
154,053
22,177
1,186,131
58,329
14,833
177,979
317,937
1,931,439
5.13
5.13
1,399,600
1,680,375
3,823
35
3,083,833
1,399,600
1,482,747
–
35
2,882,382
5.14
5.20
5.15
5.16
5.17
5.18
5,496,920
–
662,273
613,035
25,670
13,046
6,810,944
5,710,090
700,000
777,451
506,668
19,253
12,320
7,725,782
5.19
5.20
5.14
5.21
5.16
2,118,463
1,650,000
383,990
879
59,265
64,743
4,277,340
14,172,117
2,318,192
600,000
337,451
2,438
178,277
18,568
3,454,926
ASSETS
NON-CURRENT ASSETS
Intangible assets
Property, plant and equipment
Investment property
Biological assets
Financial investments
Loans and other receivables
Unfinished lotteries
Prepaid expenses and other accruals
Deferred tax asset
Total non-current assets
CURRENT ASSETS
Inventories
Trade and other receivables
Current tax asset
Financial assets
Cash and cash equivalents
Total current assets
T O TA L A S S E T S
14,063,090
EQUITY AND LIABILITIES
E Q U I T Y AT T R I B U TA B L E T O O W N E R S
Share capital
Retained earnings
Other components of equity
Non-controlling interest
Total equity
NON-CURRENT LIABILITIES
Bond issue
Bank borrowings
Trade and other payables
Deferred income related to lotteries
Provisions
Deferred tax liabilities
Total non-current liabilities
CURRENT LIABILITIES
Bank borrowings
Current portion of bond issue
Current tax payable
Other deferred income
Total current liabilities
T O TA L E Q U I T Y A N D L I A B I L I T I E S
The accompanying notes are an integral part of the consolidated financial statements.
66
S A Z K A , a.s.
Annual Report 2009
Consolidated Balance Sheet
14,063,090
Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2009 (In thousands CZK)
Revenue from lotteries and betting games
Revenue from non-lottery activities
Total revenue
Cost of sales – lotteries and betting games
Cost of sales – non-lottery activities
Total cost of sales
Gross profit
Other income
Marketing and selling expenses
Administrative expenses
Other expenses
Interest income
Interest expense
Financial gains (losses)
Profit before tax
Income tax expense
Profit for the year
Other comprehensive income
Available-for-sale financial assets
Income tax related to available-for-sale financial assets
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Profit for the year attributable to:
Owners of the parent
Total comprehensive income for the year attributable to:
Owners of the parent
Earnings per share (basic and diluted):
per share with a face value of CZK 1,000 thousand
per share with a face value of CZK 100 thousand
per share with a face value of CZK 10 thousand
Note
6.1
6.1
6.1
6.1
6.2
6.3
6.5
2009
8,460,570
464,730
8,925,300
7,192,496
492,772
7,685,268
1,240,032
386,133
228,912
50,125
243,154
759,941
668,602
67,812
1,263,125
14,187
1,248,938
2008
8,159,846
513,525
8,673,371
6,829,311
528,678
7,357,989
1,315,382
297,755
250,707
90,891
53,590
776,187
729,831
4,769
1,269,074
13,747
1,255,327
4,720
(897)
3,823
1,252,761
(601)
126
(475)
1,254,852
–
1,248,938
2
1,255,325
–
1,252,761
2
1,254,850
892
89
9
897
90
9
67
S A Z K A , a.s.
Annual Report 2009
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Balance at 1 January 2009
Changes in equity for 2009
Proceeds to shareholders
Proceeds to non-shareholders
Royalties to Board members
Social reserves and bonus reserves (payables to employees)
Allocation to legal reserve
Balance at 31 December 2009
Transfer to retained earnings
Share capital
Retained Earnings
Appropriated
1,399,600
181,182
13,142
1,399,600
1,399,600
18,718
1,399,600
68
S A Z K A , a.s.
Annual Report 2009
194,324
162,464
181,182
Retained Earnings
Unappropriated
1,301,565
(445,564)
(551,816)
(1,320)
(52,610)
(13,142)
1,248,938
1,486,051
1,338,762
(716,754)
(476,206)
(19,101)
(61,739)
(18,718)
1,255,325
(4)
1,301,565
69
S A Z K A , a.s.
Available-for-sale
financial
assets
–
Equity attributable
to equity holders
of the parent
2,882,347
3,823
3,823
475
(445,564)
(551,816)
(1,320)
(52,610)
–
1,252,761
3,083,798
2,901,301
(475)
–
Annual Report 2009
Non-controlling
interest
(716,754)
(476,206)
(19,101)
(61,739)
–
1,254,850
(4)
2,882,347
35
Total
shareholders’
equity
2,882,382
35
29
(445,564)
(551,816)
(1,320)
(52,610)
–
1,252,761
3,083,833
2,901,330
2
4
35
(716,754)
(476,206)
(19,101)
(61,739)
–
1,254,852
–
2,882,382
Consolidated Statement of Cash Flows
2009
2008
1,248,938
1,255,327
14,187
156,567
3,568
6,417
(769)
(91,339)
(55,504)
50,261
1,332,326
13,747
127,981
422
6,418
–
(46,356)
239
9,872
1,367,650
(154,780)
(4,766)
(235,846)
718
(12,645)
7,582
46,175
–
89,309
1,068,073
(130,940)
(32,101)
905,032
14,025
465
327,276
(24,605)
24,310
1,880
(25,637)
100,000
(62,630)
1,722,734
(120,370)
(66,062)
1,536,302
(13,000)
–
769
(363,513)
988
(384,818)
540,149
743,972
524,547
–
5
–
(254,916)
5,946
(375,000)
341,762
720,535
438,332
(111,600)
(630,919)
(13,303)
350,000
(36,046)
7,169
(1,025,459)
(1,460,158)
(30,579)
317,937
(55,800)
(626,924)
(7,359)
–
(63,393)
–
(1,154,597)
(1,908,073)
66,561
251,323
65
287,808
53
317,937
(761,859)
747,294
C A S H F L O W F R O M O P E R AT I N G A C T I V I T I E S
PROFIT FOR THE YEAR
Adjustments for:
Income tax expense recognized in profit or loss
Depreciation and amortization of non-current assets
Bad debt expense (reversal) recognized in profit or loss
Provision for onerous contract recognized in profit or loss
Dividends revenue
Interest expense less interest (revenue)
(Gain)/loss on revaluation
(Gain)/loss on sale of non-current assets
Operating cash flows before movements in working capital
Movements in working capital:
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Decrease (increase) in unfinished lotteries
Increase (decrease) in deferred income related to lotteries
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Increase (decrease) in short-term bank loans
Decrease (increase) in short-term financial assets
Cash generated from operations
Interest paid
Income taxes paid
N E T C A S H F R O M O P E R AT I N G A C T I V I T I E S
CASH FLOW FROM INVESTING ACTIVITIES
Payments to acquire financial investments
Proceeds form sale of financial investments
Dividends received
Payments to purchase PPE and intangible assets
Proceeds from sale of PPE and intangible assets
Loans provided
Proceeds from repayment of loans
Interest received
NET CASH FROM INVESTING ACTIVITIES
CASH FLOW FROM FINANCING ACTIVITIES
Repayments for bond issue
Interest related to bond issue paid
Payments for finance lease liabilities
Proceeds from bank and other borrowings
Payments for other non-current liabilities
Proceeds from other non-current liabilities
Proceeds paid
NET CASH USED IN FINANCING ACTIVITIES
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year (note 5.12)
Effects of exchange rate changes on the balance of cash
and cash equivalents held in foreign currencies
Cash and cash equivalents at end of the year (note 5.12)
Additional disclosures:
Total interest paid during the period
70
S A Z K A , a.s.
Annual Report 2009
Consolidated Statement of Cash Flows
This edition of the Annual Report does not contain Notes to the Financial Statements. The full Annual Report as required under
Act No 563/1991, the Commercial Code, is filled at the headquarters of SAZKA, a.s. and in the Collection of Instruments of the
Commercial Register.
71
S A Z K A , a.s.
Annual Report 2009
Financial Statements
prepared as at and for the year ended 31 December 2009
Separate Balance Sheet
As At 31 December 2009 (In thousands CZK)
Note
2009
2008
5.1
5.2
5.3
5.4
5.5
5.6
5.8
135,618
1,121,937
–
1,728,798
8,686,079
657,597
2,494
12,332,523
113,969
1,209,024
51,605
1,715,798
8,903,250
559,530
3,019
12,556,195
5.6
5.7
5.19
5.8
5.9
5.10
55,268
1,672,358
21,120
7,703
75,899
209,812
2,042,160
14,374,683
154,053
1,138,286
58,329
13,490
125,807
223,679
1,713,644
14,269,839
5.11
5.11
1,399,600
1,933,218
3,332,818
1,399,600
1,731,548
3,131,148
5.12
5.18
5.13
5.14
5.15
5.16
5,496,920
–
632,500
613,035
25,670
11,342
6,779,467
5,710,090
700,000
775,154
506,668
19,253
9,546
7,720,711
5.17
5.18
5.12
5.14
2,106,803
1,650,000
383,990
59,265
62,340
4,262,398
14,374,683
2,285,983
600,000
337,451
178,277
16,269
3,417,980
14,269,839
ASSETS
NON-CURENT ASSETS
Intangible assets
Property, plant and equipment
Investment property
Financial investments
Loans and other receivables
Total non-current assets
CURRENT ASSETS
Trade and other receivables
Current tax asset
Financial assets
Cash and cash equivalents
Total current assets
T O TA L A S S E T S
EQUITY AND LIABILITIES
E Q U I T Y AT T R I B U TA B L E T O O W N E R S
Share capital
Retained earnings
Total equity
NON-CURRENT LIABILITIES
Bond issue
Bank borrowings
Provisions
Deferred tax liabilities
Total non-current liabilities
CURRENT LIABILITIES
Bank borrowings
Current portion of bond issue
Other deferred income
Total current liabilities
T O TA L E Q U I T Y A N D L I A B I L I T I E S
The accompanying notes are an integral part of the financial statements.
72
S A Z K A , a.s.
Annual Report 2009
Separate Balance Sheet
Separate Statement of Comprehensive Income
Note
6.1
6.1
6.1
6.1
6.1
6.1
Revenue from lotteries and betting games
Revenue from non-lottery activities
Total revenue
Cost of sales – lotteries and betting games
Cost of sales – non-lottery activities
Total cost of sales
Gross profit
Other income
Marketing and selling expenses
Administrative expenses
Other expenses
Interest income
Interest expense
Financial gains (losses)
Profit before tax
Income tax expense
Profit for the year
Other comprehensive income
Available-for-sale financial assets
Income tax related to available-for-sale financial assets
Other comprehensive income for the period, net of tax
6.2
6.3
6.5
2009
8,460,570
464,730
8,925,300
7,192,496
492,772
7,685,268
1,240,032
187,287
12,896
140,904
166,276
759,332
667,999
66,257
1,264,833
14,763
1,250,070
2008
8,159,846
513,525
8,673,371
6,829,311
528,678
7,357,989
1,315,382
130,958
11,958
197,578
14,428
775,478
728,956
(978)
1,267,920
12,776
1,255,144
–
–
–
1,250,070
(601)
126
(475)
1,254,669
73
S A Z K A , a.s.
Annual Report 2009
Separate Statement of Comprehensive Income
Separate Statement of Changes in Equity
Share
capital
1,399,600
Retained Earnings
Appropriated
Unappropriated
174,329
12,888
1,399,600
187,217
Total
shareholders’
equity
1,557,219 3,131,148
(445,564)
(551,816)
(445,564)
(551,816)
(51,020)
(12,888)
1,250,070
1,746,001
(51,020)
–
1,250,070
3,332,818
Share
capital
Social reserves and bonus reserves
(payables to employees)
1,399,600
Retained Earnings
Appropriated Unappropriated Available-for- sale
Total
financial shareholders
assets
equity
155,703
1,592,951
475 3,148,729
18,626
1,399,600
174,329
(716,754)
(476,206)
(17,551)
(716,754)
(476,206)
(17,551)
(61,739)
(18,626)
1,255,144
1,557,219
(61,739)
–
1,254,669
3,131,148
74
S A Z K A , a.s.
Annual Report 2009
(475)
–
Separate Statement of Cash Flows
2009
2008
1,250,070
1,255,144
14,763
125,851
31
6,417
(91,333)
(57,115)
50,261
1,298,945
12,776
103,859
421
6,418
(46,522)
1,264
7,829
1,341,189
(156,747)
(292,944)
718
(12,645)
6,312
46,071
–
50,461
940,171
(127,703)
(29,152)
783,316
46,129
360,701
(24,605)
24,310
8,286
(26,986)
100,000
(13,510)
1,815,514
(119,818)
(61,753)
1,633,943
C A S H F L O W F R O M O P E R AT I N G A C T I V I T I E S
PROFIT FOR THE YEAR
Adjustments for:
Income tax expense recognized in profit or loss
Depreciation and amortization of non-current assets
Bad debt expense (reversal) recognized in profit or loss
Provision for onerous contract recognized in profit or loss
Interest expense less interest (revenue)
(Gain) / loss on revaluation
(Gain) on sale of non-current assets
Operating cash flows before movements in working capital
Movements in working capital:
Decrease (increase) in trade and other receivables
Increase (decrease) in trade and other payables
Decrease (increase) in unfinished lotteries
Increase (decrease) in deferred income related to lotteries
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Increase (decrease) in short-term bank loans
Decrease (increase) in short-term financial assets
Cash generated from operations
Interest paid
Income taxes paid
N E T C A S H F R O M O P E R AT I N G A C T I V I T I E S
CASH FLOW FROM INVESTING ACTIVITIES
Payments to acquire financial investments
Payments to purchase PPE and intangible assets
Proceeds from sale of PPE and intangible assets
Loans provided
Proceeds from repayment of loans
Interest received
NET CASH FROM INVESTING ACTIVITIES
(13,000)
(15,000)
(228,019)
819
(384,818)
544,203
742,859
662,044
(226,009)
2,601
(375,000)
321,786
719,643
428,021
(111,600)
(630,919)
(11,879)
350,000
(36,046)
6,611
(1,025,459)
(1,459,292)
(13,932)
223,679
(55,800)
(626,924)
(7,359)
–
(63,393)
–
(1,154,597)
(1,908,073)
153,891
69,735
65
209,812
53
223,679
758,622
746,742
CASH FLOW FROM FINANCING ACTIVITIES
Repayments for bond issue
Interest related to bond issue paid
Payments for finance lease liabilities
Proceeds from bank loans and other borrowings
Payments for other non-current liabilities
Proceeds from other non-current liabilities
Proceeds paid
NET CASH USED IN FINANCING ACTIVITIES
N E T, I N C R E A S E , I N , C A S H , A N D , C A S H , E Q U I VA L E N T S
Cash and cash equivalents at beginning of the year (note 5.10)
Effects of exchange rate changes on the balance of cash and cash equivalents held
in foreign currencies
Cash and cash equivalents at end of the year (note 5.10)
Additional disclosures:
Total interest paid during the period
75
S A Z K A , a.s.
Annual Report 2009
Separate Statement of Cash Flows
Information from the General Meeting
The nineteenth Annual General Meeting of SAZKA, a.s., held on 26 May 2010 at the headquarters of SAZKA, a.s., K Žižkovu 851,
190 93 Praha 9, discussed the Company’s economic, financial and operating results for 2009.
The SAZKA, a.s. General Meeting acknowledged the SAZKA, a.s. Board of Directors Report for 2009, which contained the report on
SAZKA’s business activities and assets for 2009.
The General Meeting also acknowledged the SAZKA, a.s. Supervisory Board Report for 2009.
The shareholders of SAZKA, a.s. approved the financial statements of SAZKA, a.s. for 2009 and the consolidated financial
statements of the SAZKA group for 2009, and took due note of the auditor’s report.
The General Meeting of SAZKA, a.s. approved the distribution of the profit posted by SAZKA, a.s. in 2009, the decision not to pay
a share of the profit to members of the Board of Directors and Supervisory Board of SAZKA, a.s. for 2009, the proposal for the
material involvement of members of the Board of Directors and Supervisory Board of SAZKA, a.s. for 2010, and the proposal for the
remuneration of members of the Board of Directors and Supervisory Board of SAZKA, a.s. for 2010.
The General Meeting decided to remove and appoint a member of the SAZKA, a.s. Board of Directors, and approved the associated
agreement on the holding of office of a member of the Board of Directors.
The General Meeting approved an amendment to the SAZKA, a.s. Articles of Association as proposed by the SAZKA, a.s. Board of
Directors.
The General Meeting also designated an auditor for SAZKA, a.s.
76
S A Z K A , a.s.
Annual Report 2009
Information from the General Meeting
Important Post Balance Sheet Date Events
April 2010 – Association of Odds Betting Operators, of which is SAZKA, a.s. is a member SAZKA
The Football Association of the Czech Republic and the Police Force of the Czech Republic agreed on a system that will effectively
prevent fraud and undue influences on football matches.
April 2010 – Annual General Meeting of the Czech Sports Association, the majority owner of SAZKA, a.s.
Pavel Kořan, previously the Association’s Vice-Chairman, was elected to chair the organization. The prime objective of the
Association’s new Executive Committee will be to modernize the biggest Czech sports organization and secure resources for the
activities of associated entities.
77
S A Z K A , a.s.
Annual Report 2009
Important Post Balance Sheet Date Events
Definition of Terms
Lotteries Act
Act No 202/1990 on lotteries and other similar games, as amended. A fundamental piece of legislation that defines the various types
of products and games and lays down the rules for their operation in the Czech Republic.
Proceeds
The term “Proceeds” is defined as the income of one gaming operator consisting of all stakes bet on all games operated by the
operator under the above-mentioned Act, which are carried in the accounts in the accounting period, less winnings, administrative
fee, local tax, government oversight costs, and the operator’s own costs directly relating to the operation of games (Section 4(3) of
Act No 202/1990). The operator cedes the portion of the proceeds stipulated by law for public causes.
Number lotteries
Number lotteries are games in which there is no preset number of participants or winnings base. The winnings are calculated
according to the number of winners and the aggregate amount of revenues (wagers) using a preset ratio, or else they are set as a
multiple of the amount of a stake (wager) based on how many of a limited quantity of numbers drawn in a game the participant
guesses in accordance with the game plan (Section 2(c) of Act No 202/1990).
Sports betting
Sports betting encompasses betting games in which winnings are contingent on guessing the results of sports events and races,
where the amount of the winnings depends on the ratio of the number of winners to the overall amount of the revenues (wagers) and
the preset winnings ratio (Section 2(f) of Act No 202/1990).
Odds betting
Odds betting encompasses betting games in which the winnings are contingent on guessing the results of sports events or the results
order in sports competitions or races, or on guessing other events of public interest, provided that wagering on these events does not
violate ethical principles. The amount of the winnings is directly proportional to the odds at which the wager was accepted and the
amount wagered (Section 2(h) of Act No 202/1990).
Instant lotteries
Instant lotteries are games in which the winner learns of the winnings immediately after buying the ticket by viewing special areas
on the ticket that remain hidden until purchase (Section 2(d) of Act No 202/1990).
STARPORT
STARPORT is the name of a central lottery system with interactive video-lottery terminals. The system applies a new gaming
platform based on a central server combined with interactive video-lottery terminals and terminals for retailers. The system operates
online; the central server solution facilitates the introduction of new gaming possibilities, including remote upgrades, random number
generation, transaction processing, authentication, registration, and control of game data in real time.
78
S A Z K A , a.s.
Annual Report 2009
Definition of Terms
Contact Details of Central and Regional Centres
Central
Centre
Call Centre
Address
K Žižkovu 851
190 93 Praha 9
Telephone
+ 420 266 121 155
Fax
+ 420 266 128 920
E-mail
[email protected]
Ticketing
K Žižkovu 851
190 93 Praha 9
+ 420 266 121 122
+ 420 266 129 389
[email protected]
Odds betting
K Žižkovu 851
190 93 Praha 9
+ 420 266 128 098
+ 420 266 122 160
[email protected]
Dispatching Unit
K Žižkovu 851
190 93 Praha 9
+ 420 266 121 212
+ 420 266 121 111
+ 420 266 313 110
[email protected]
Prague
K Žižkovu 851
+ 420 266 121 155
190 93 Praha 9
Prague Sales Inspector
+ 420 602 665 629
Central Bohemia Sales Inspector + 420 602 682 965
+ 420 266 127 166
[email protected]
České Budějovice
Pabláskova 260/7
370 01 České Budějovice
Sales Inspector
+ 420 266 121 155
+ 420 266 127 266
[email protected]
Plaská 2038/66a
323 25 Plzeň
Sales Inspector
+ 420 266 121 155
+ 420 266 127 366
[email protected]
Pod Holoměří 2
400 01 Ústí nad Labem
Sales Inspector
+ 420 266 121 155
+ 420 266 127 466
[email protected]
+ 420 266 127 566
[email protected]
+ 420 266 127 666
[email protected]
+ 420 266 127 766
[email protected]
Regional Centres
Plzeň
Ústí nad Labem
Hradec Králové
Brno
Ostrava
79
Za Škodovkou 537
500 04 Hradec Králové
Sales Inspector
+ 420 602 682 893
+ 420 602 682 971
+ 420 602 665 692
+ 420 266 121 155
+ 420 602 682 923
Lesnická 11
613 00 Brno – Černá Pole
Sales Inspector
+ 420 266 121 155
Za Potokem 1/1076
724 00 Ostrava – Stará Bělá
Sales Inspector
+ 420 266 121 155
S A Z K A , a.s.
Annual Report 2009
+ 420 602 682 954
+ 420 602 682 943
Contact Details of Central and Regional Centres
Identification Information
Company name
Registered office
Registered number
Legal form
SAZKA, a.s.
Praha 9, K Žižkovu 851, 190 93
471 16 307
public limited company
Objects of business
– operation of lotteries and other similar games in accordance with generally binding legal regulations,
– the company operates lotteries and other similar games by selling tickets and taking receipt of wagers in the outlets of authorized
dealers (legal entities and individuals) and in outlets established by the company, and via a public server facilitating remote access
to a group of persons not restricted in advance
– accounting consulting, bookkeeping, tax accounting
– data transfer services
– manufacture, trade and services not specified in Annexes 1 to 3 to the Trade Licensing Act
Incorporation
SAZKA, a.s. was incorporated on 15 February 1993 by entry in the Commercial Register at the Municipal Court in Prague under
Section B, Entry 1855.
80
S A Z K A , a.s.
Annual Report 2009
Identification Information
Consulting, design, and production:
© B.I.G. Prague, 2010
Still Life with Fruit – Pumpkin and Lemon from Valletta
Still Life with Rose >

SAZKA_EN_NEW_krat.qxd:Sestava 1

Transcription

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