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Hrvatska Lutrija d.o.o.
Annual report for
2010.
C ••
ontents
LETTER FROM THE MANAGEMENT BOARD
1
SHORT COMPANY HISTORY
3
•
4
GAMES OF CHANCE MARKET
LEGISLATION
SITUATION ON THE GAMING MARKET
•
8
HRVATSKA LUTRIJA TODAY
GOVERNANCE AND MANAGEMENT
ORGANISATION STRUCTURE
GAMES AND SALES POTENTIALS
TECHNOLOGY
MARKETING
AWARDS
•
CORPORATE SOCIAL RESPONSIBILITY
23
RESPONSIBLE GAMING
RESPONSIBILITY TOWARDS EMPLOYEES
SOCIAL RESPONSIBILITY
•
HRVATSKA LUTRIJA AND ITS STAKEHOLDERS
FINANCIAL INDICATORS
46
FINANCIAL RESULTS
FINANCIAL REPORTS
•
INDEPENDENT AUDITOR’S REPORT
60
V
ision
T
o be the games of
chance
market leader.
T
o conduct and organise
games entertaining for
players and of benefit to the
community in a responsible
and reliable manner.
Organisational
values
Professional Quality
We have the necessary know-how and skills.
We conduct our business efficiently, with dedication and responsibility.
Honesty and Ethics
Our high regard for social and ethical norms
is manifested through our fulfilment of the commitment towards players, our employees, the
owner and the social environment.
Social Responsibility
We operate with full social responsibility. We
want to meet the expectations of our players,
employees, the owner and the social environment thus contributing to the improvement of
the quality of life everybody aims at.
Growth
The Croatian Lottery wants to be an organisation that instructs, encourages and enables its
employees to make progress. It also wants to
enable the acquisition and the expansion of new
know-how, to encourage team work, open and
effective communication, as well as creativity, all
aimed at individual and organisational growth.
M
ission
T
o exceed the
expectations of its
players by providing them with
a vast range of its products,
innovativeness, the application of
new technological advances and
quality service.
T
o generate more funds for
socially relevant causes
and humanitarian activities by
organizing and conducting games of
chance in a controlled and socially
responsible manner.
T
o create motivating
working environment as the
groundwork for business success
by a continuous improvement of
working conditions, encouragement
of personal growth and
implementation of an adequate
compensation system.
1
HL 2010
Letter
from the
Management
Board
Dear Sir or Madam,
Our vision is to organize games of chance in a
responsible and reliable manner, fun for players
and beneficial to the community. We accomplish it by generating funds for socially useful
purposes such as financing the programmes of
organizations that promote the development of
sport, contribute to the fight against drugs and
all
other forms of addiction, engage in
social and humanitarian activiIn
ties, problems and fulfilling
the needs of people with
2010 we
disabilities, technical
paid to the
education, culture,
non-institutional edustate budget the
cation and upbringing
amount of HRK
of children and young
”
116 million
people and that contribute to the development of civil
society. .
In 2010 we paid to the state budget the amount of
HRK 116 million of which 50% or HRK 58 million was
used for financing these programs. These funds would be
even greater if the decline in economic activity and GDP
did not continue in 2010, combined with growing unemployment and a general concern for the economy. It is
quite certain that our players took these indicators into
account when adjusting their consumption patterns to
their current financial capacity, including the spending
on games of chance. The result is that the turnover and
revenues from games of chance, as well as the profit are
lower than in the previous year.
In accordance with the requirements of business and
strategic objectives, the main business objectives in
2010 were: introduction of Internet as a new sales
channel, implementation of the European Responsible Gaming Standards and optimization and rationalization of operations. We consider Internet gaming
to be especially important for our future operations. It
Letter from the
Management Board
Business performance and
achievements of Hrvatska
Lutrija in 2010 are
presented in this Report.
2
HL 2010
In 2010 we harmonised with the Responsible Gaming Standards and made preparations
for certification. We implemented a number of
measures to rationalize and optimize our operations of which the most significant are: reduction in the rental fee for office premises, closing
of unprofitable locations, reducing the rental
fee and number of slot machines, reassignment
and downsizing of personnel, reduction in salary costs, optimizing advertising costs, etc. The
implemented measures resulted in savings
of HRK 23.5 million compared to 2009.
”
But, owing to its
We
valuable employees
and their comconsider
mitment, Hrgames of chance
vatska Lutrija
via Internet to be
d.o.o. won numerous awards
especially imporamong which
tant for future
I would like
to point out the
operations
Employer Partner
Certificate for excellence in Human Resource Management, Superbrands which included Hrvatska Lutrija
among the leading brands in Croatia, Vidi Web Top 100
according to which the Hrvatska Lutrija website is listed
among the top 100 sites, i.e. among the top 10 in the category “Government organizations and state institutions”
and the recognition to the advertising campaign “For
all who love to play,” which was selected by marketing experts as a candidate to win the prestigious prize
awarded by the professionals at the advertising festival in
the category of the best advertising campaign in Croatia
in 2010.
I would like to express my sincere gratitude to all employees, business partners, members of the Supervisory
Board and the Assembly and the players for trust they
have put in us by playing the games of Hrvatska Lutrija. I
am convinced that we will continue to work hard together to develop and promote games of chance in order to
meet or even surpass the expectations of our stakeholders in the next year.
I invite you to read this Report and learn more about
us and our achievements in 2010.
Yours sincerely,
Mag. Vesna Bakran,
Chairwoman of the Board
Letter from the
Management Board
became possible by the new Games of Chance
Act, which came into force on 1 January 2010.
3
HL 2010
Short
company
history
Games of chance have long
tradition on the territory
of the Republic of Croatia.
Their conducting started
far back in 1951 by the
establishment of the
Croatian Directorate within
the Yugoslav Lottery.
Until 1973 the following games of chance
were conducted: lotteries, sports games parimutuel, and Lotto. In the same year, Hrvatska
Lutrija became a legal entity and started operating independently under the name Državno
SLIKA
Lottery
tickets
sales at
“Jelačić
Platz”
ent organisation, Hrvatska Lutrija expanded its range of
products. In the period from 1974 to 1992, in addition to
lotteries, sports games pari-mutuel and Lotto 7/39, the
following games were also introduced: Lotto 6/45, Instant and Express Lottery, Cash and merchandise awarded lottery, Tombola, Bingo as well as slot machine games
and casino games.
poduzeće Lutrija Hrvatske (State-owned
Company Croatian Lottery) within Poslovna
zajednica jugoslavenskih lutrijskih organizacija (Business Association of Yugoslav Lottery
Organizations). After becoming an independ-
The Republic of Croatia is the sole founder of Hrvatska
Lutrija, and the conducting of games of chance in the
Republic of Croatia is defined by the Act on Organisation of Games of Chance. Since 1993 Hrvatska Lutrija
has been a member of WLA (World Lottery Association)
and AESL (Association of European State Lotteries) and
it has been following models and standards of business
efficiency of similar companies in developed European
countries in technological, organisational and professional terms.
Short history of the Company
After the establishment of Croatia as an independent
state in 1991, all business relationships with the Business
Association of Yugoslav Lottery Organisations were terminated, and in 1993 Lutrija Hrvatske changed its name
to Hrvatska Lutrija d.o.o.
4
HL 2010
Games of
chance
market
-Legislation
The new Games of Chance Act
came into effect on 1 January
2010.
••
••
••
••
lottery games
casino games
betting games
slot machine games
The Act introduced a fee for organizing lottery games, and the VAT Act Amendments
changed the tax treatment of games of chance,
i.e. abolition of VAT on games of chance.
The tax on prizes from games of chances was
introduced, payable by natural persons who
won prizes from lottery games and betting
games. The prize tax is paid at the rate of 15%
on prizes ranging from HRK 30 to HRK 500
thousand, and at the rate of 20% on all prizes
exceeding half a million kuna.
The new Act regulated several issues relevant to the
further development of this sector in Croatia. One of
them was regulating the possibility of receiving payments for lottery games, betting and casino games via
Internet, telephone and other interactive communication devices, through which the player could play the
game independently, without a direct representative of
the organizer.
These changes also involve the fee system for conducting of games of chances, which are defined in a fixed and
a variable amount. A monthly fee was introduced for
condusting lottery games amounting to 10% of the basis,
i.e. the sum of all payments received, and this Act defined the monthly fees as follows:
••
••
••
betting fee amounting to 5% of the total payment
casino gaming fee amounting to 15% of the receipts
the slot machine gaming fee amounting to 25% of the receipts
Games of chance market
The new Games of Chance Act came into effect on 1 January 2010. Changes in law caused
changes in the allocation of funds from the
games of chance and influenced the manner of
presentation of revenue and expenses for 2010.
Pursuant to the mentioned Act as well, games
of chance are classified into four groups:
5
HL 2010
-Situation on the gaming
market
In 2010 there were 81 organisers
of games of chances operating
and legally acting on the gaming
market in the Republic of Croatia.
Hrvatska Lutrija d.o.o. was one
of these organisers, the only
company owned by the state and
with the broadest range of games
of chance.
••
••
••
casino games
slot machine games
betting
In 2010, a total of 14 companies, holding 20 casinos,
had the right to organise casino games, and 54 concessionaries with 218 slot machines clubs had the right to
organize slot machine games.
In 2010 nine concessionaries with 2,555 points of
sales organised betting games.
Based on the information from the Ministry of Finance
(Games of Chance, Amusement and Prize Games Department) and our own data, tables and graphs below
present market shares divided according to the categories of games of chance and their organisers.
Table 1 shows the total turnover and revenue on the
gaming market for betting shops, casinos and slot machine clubs and the share of Hrvatska Lutrija.
It can be seen that in the 2008 – 2010 period the total turnover and revenue in this business dropped
from HRK 6,011.09 million in 2008 to HRK
5,474.66 million in 2010.
In betting, total turnover in Croatia is going down,
while the turnover of betting shops of Hrvatska Lutrija is
constantly going up and increasing its market share. In
2008, the share was 8.28%, in 2009 10.41% and 10.94% in
2009, respectively. It reflected negative market selection
but also a continuing rise in the quality of our betting
shops’ offer.
HL share in total betting turnover (in mil. HRK)
5000,00
Hrvatska Lutrija d.o.o. offers all four categories of games of chances. The games of Hrvatska Lutrija d.o.o. hold almost 20 % of
the total gaming market in Croatia.
Monopoly is present only in one market segment. Only Hrvatska Lutrija d.o.o. has the right
to organise lottery games. Liberalisation and
strong competition are the basic characteristics
of the remaining portion of the gaming market
which consists of:
Betting shops HL
4500,00
Private
concessionaires
4000,00
3500,00
3000,00
2500,00
2000,00
1500,00
1000,00
500,00
0,00
2008
2009
2010
In addition to these monthly fees, new annual fixed amount fees were introduced. For
organizing betting games by payments at payments points and self-service terminals the
annual fee of one million kuna shall be paid,
while the organizers, who organize betting via
interactive retail channels, shall pay the annual
fee amounting to HRK 3 million. For organizing casino games, the annual fee is HRK 500
thousand per casino, and for organizing casino
games via interactive retail channels, the annual fee shall be HRK 3 million. For slot machine
games the fee shall amount to HRK 10 thousand per machine. If the organizer organizes a
game of chance at the slot machine club on an
electronic roulette with up to six gaming stations, the annual fee shall be HRK 40 thousand
and HRK 50 thousand for more than six stations, respectively.
6
HL 2010
The segment of casino games recorded the
greatest revenue drop in the past three years.
The income of our casinos also followed this
trend. Our share in this segment dropped from
16.72% in 2009 to 13.61 % in 2010, mainly due
to greater flexibility of private concessionaries
and illegal competitors, i.e. organisers investing
huge sums into advertising to attract as many
of out players as possible, although they are
in violation of several legal provisions through
their activities in Croatia. .
HL share in total casino revenues (in mil. HRK)
350,00
Casinos HL
300,00
Casinos - Private
concessionaires
250,00
200,00
150,00
100,00
50,00
Similar situation exists in the segment of slot
machine clubs. We closed 5 such unprofitable
clubs and the share of slot machine clubs in the
total revenue dropped from 7.34 % in 2008 to
5.92 % in 2010.
0,00
2008
2009
2010
HL share in total slot machine clubs revenues (in mil. HRK)
Slot machine
clubs HL
Slot machine clubs
- Private concess.
1000,00
In the 2008-2010 period the average share
of Hrvatska Lutrija d.o.o. in the whole gaming
market of the Republic of Croatia was 19.85%,
i.e. 18.12% in 2008, 21.83% in 2009 and 19.60%
in 2010.
900,00
800,00
700,00
600,00
500,00
400,00
300,00
Table 1 - Actual turnover and revenue
from games of chance for the 20082010 period
200,00
100,00
0,00
2008
2009
2010
TURNOVERS AND REVENUES in mil. HRK
turnover
revenue
revenue
Betting shops
- private
concess.
Betting shops
HL
Casinos
- private
concess.
Casinos HL
Slot machine
clubs private
concess.
Slot machine
clubs HL
TOTAL
1
2
3
4
5
6
7 (1+2+3+4+5+6)
2008.
4.296,41
388,10
283,03
59,41
910,13
74,01
6.011,09
2009.
3.993,24
464,10
237,34
47,64
757,24
59,95
5.559,51
2010.
4.017,59
493,48
185,76
29,26
704,29
44,28
5.474,66
Year
HL´s share in total realised betting turnover and in revenues of casinos and slot mach. clubs for the period 0810
revenue structure
revenue structure
Betting shops
- private
concess.
Betting shops
HL
Casinos
- private
concess.
Casinos HL
Slot machine
clubs private
concess.
Slot machine
clubs HL
1
2
3
4
5
6
2008.
91,72%
8,28%
82,65%
17,35%
92,48%
7,52%
2009.
89,59%
10,41%
83,28%
16,72%
92,66%
7,34%
2010.
89,06%
10,94%
86,39%
13,61%
94,08%
5,92%
Year
turnover structure
7
HL 2010
Table 2 shows the total turnover and revenue from games of chances in the Republic
of Croatia and in Hrvatska Lutrija d.o.o. (including lottery games).
Table 2 - turnover and revenue realized from games of chance for the 2008-2010
period.
HL TURNOVERS AND REVENUES in mil. HRK
Lottery games turnover
Betting turnover
Casinos revenue
Slot machine clubs
- revenue
HL TOTAL
2008.
692.965.445,00
388.100.626,10
59.411.368,07
74.007.080,60
1.214.484.519,77
2009.
821.220.410,00
464.100.450,42
47.636.685,18
59.951.379,44
1.392.908.925,04
2010.
629.637.699,00
493.483.894,84
29.257.247,32
44.281.684,80
1.196.660.525,96
2.143.823.554,00
1.345.684.971,36
136.305.300,56
178.240.144,84
3.804.053.970,76
Year
HL´s share in total turnover and revenue from games of chance for 2008-2010 period
Year
Private concessionaires
HL Total
TOTAL
2008.
5.489.569.141,16
1.214.484.519,77
6.704.053.660,93
2009.
4.987.822.420,85
1.392.908.925,04
6.380.731.345,89
2010.
4.907.640.943,30
1.196.660.525,96
6.104.301.469,26
15.385.032.505,32
3.804.053.970,76
19.189.086.476,08
HL share in total turnover and revenue from games of chance for 2008 – 2010 period (in mil. HRK)
HL Total
7000
Private
concessionaires
6000
5000
4000
3000
2000
1000
0
2008
2009
2010
Share in total turnover and revenue
Private
concessionaries
HL Total
TOTAL
2008.
81,88
18,12
100,00
2009.
78,17
21,83
100,00
2010.
80,40
19,60
100,00
Year
8000
8
HL 2010
Hrvatska
Lutrija
today
G
overnance and
Management
Pursuant to the provisions of the
Companies Act and Articles of
Association of Hrvatska Lutrija
d.o.o., Hrvatska Lutrija d.o.o. has a
Management Board, Supervisory
Board and Assembly which act as
separate bodies and an individual
cannot be a member of all the
bodies.
The Management of the Company consists
of the Chairwoman of the Board Mrs. Vesna
Bakran.
The Management has the rights and responsibilities stipulated by the Act, the Statement of
the limited liability company Hrvatska Lutrija
d.o.o. and other enactments, i.e. resolutions of
the Company’s bodies.
The Management is responsible and authorised to take all actions it deems needed for
managing the company´s operations. Business
has to be managed with due diligence. The
Supervisory Board
The main task of the Supervisory Board is to supervise
the conducting of business of the Company. The Board
and each of its members have to protect the interests of
the Company.
The Supervisory Board consists of five members elected and appointed by the Assembly for the period of four
years. The members of the Supervisory Board of Hrvatska Lutrija on 31 December 2010 were:
••
••
g. Branko Vukelić
g. Josip Gumzej
Chairman
Deputy Chairman
HL today
Management
Management reports to the Assembly and Supervisory
Board.
9
HL 2010
••
••
••
gđa Zdenka Matković
g. Hrvoje Španić
g. Ivica Vlašić
Member
Member
Member
Assembly
The Assembly is a person or persons determined by the Government of the Republic of
Croatia. The Assembly makes decisions on the
rights and responsibilities of the sole founder,
the Republic of Croatia, based on its membership in Hrvatska Lutrija. The Assembly decides
on all issues within the jurisdiction of the assembly of a limited liability company under the
Companies Act. In 2010, the members of the
Assembly were:
••
••
••
g. Ivan Šuker
g. Radovan Fuchs
g. Božo Biškupić
Chairman
Member
Member
At the meeting held on 30 December 2010,
the Government of the Republic of Croatia
made a decision to discharge the Assembly
Chairman Ivan Šuker and a Member M.Sc.
Božo Biskupić and to appoint M.Sc. Martina
Dalić to the position of the Assembly Chairwoman and Jasen Mesić as an Assembly Member.
On 31 December 2010, the members of the
Assembly were:
Mrs. Martina Dalić
Mr. Jasen Mesić
Mr. Radovan Fuchs
Chairwoman
Member
Member
HL today
••
••
••
10
O
rganisation
structure
Business-organisation
chart is shown in the
figure below:
HL today
HL 2010
11
G
ames and sales
potentials
On 31 December 2010, the accessibility
and offer of games of chances organised
by Hrvatska Lutrija were:
GAME TYPE AND ACCESSIBILITY
GAME (Games available on the Internet are marked green)
Lotto 7/39 and additional games Super 7 and Joker
Lotto 6/45 and additional game Joker
Lottery games:
- internet
- 1318 points of sale
(344 own, 974 authorised partners
TV Bingo 15/90 and additional game Bingo plus
Keno
Toto 13 and additional game Joker
Instant lottery
Break open tickets
Occasional lottery
Casino Bingo 24/75
Casino Bingo 15/90
Black Jack
Casino games
- 6 casinos
Texas Hold'em Poker
Omaha Poker
Caribbean Stud Poker
European Roulette
Betting games:
- internet
- 470 points of sale
Slot machine games
- 17 slot machine clubs
Sports betting
Betting on other events (Oscar, Eurosong)
Electronic roulette
Electronic poker
Slot machines
As the above table shows, our offer includes
all four categories of games of chance, and introduction of Internet on 8 September 2010, as
a new payment channel, is of particular importance in the segment of games, which will be
recorded as an extremely important event in the
development of Hrvatska Lutrija. It has enabled
playing a game, i.e. receiving payments for our
most popular games, betting and lottery games
Lotto 7/39, Lotto 6/45, TV Bingo 15 of 90 and
Keno, along with associated additional games
Super 7, Joker and Bingo plus.
By introducing of this payment channel, we increased
the quality of service provided to our players who, along
with payments at the existing traditional points of sale,
can now play games using a computer at the time and
place that suit them best. Owing to the rapid development of the Internet, games have become more dynamic,
attractive, and by introducing such new games, designed
specifically for that medium, we are going to attract new
target groups and thus gradually increase our player
base.
HL today
HL 2010
12
HL 2010
Overview of the activities of Internet players in the period from September to 31 December 2010:
Number of
players
Number of
transactions
Share in Internet
sales
Average payment
per ticket
Share of Internet
sales in total
sales
Betting
6.319
540.403
94,47%
45,67 kn
14,33%
Lotto 7/39
6.751
56.095
3,40%
15,81 kn
0,87%
Lotto 6/45
3.425
15.454
0,71%
12,04 kn
0,97%
TV Bingo 15of90
3.752
18.079
0,86%
12,49 kn
0,54%
Keno
2.663
48.512
0,56%
3,03 kn
3,71%
TOTAL
9.613
678.543
Payment can be made every day from 7 to 23
hours, i.e. this sales channel increases the accessibility and makes them more attractive to
younger and more educated generations with
access to Internet.
Betting was the game with the largest number of payments made through Internet, i.e. 18.3% of total betting
payments in December.
From the beginning of organizing games via Internet in September, to the end of 2010 the betting games
turnover realized through this channel amounted to
HRK 24.7 million, or 5% of the total annual betting game turnover.
On 31 December, there were 15,165 registered Internet players who paid HRK
8,223,077.03 into their HL accounts. Active
players account for 63.38% or 9,613 players
who played some of the games for the total sum
of HRK 26,124,449.19.
Introduction of this new sales channel and ever better
overall offer our Betting Shop are the main reasons for a
rise in turnover of betting game compared to the previous year, i.e. 6,33%.
Trends in payment amounts and the number of registered Internet players (lottery games and betting)
8000000 kn
7500000 kn
15165
11362
7000000 kn
7652
6500000 kn
Internet payments
6000000 kn
NUMBER OF REGISTERED
PLAYERS AT THE MONTH END
5500000 kn
5000000 kn
4500000 kn
4000000 kn
3500000 kn
3000000 kn
4401
IX
X
XI
XII
HL today
Game
13
HL 2010
Realised betting turnover
Description
Realised in 2009
Realised in 2010
Ratio 10/’09.
Betting
payments
441,994,459
469,975,207
106.3
Handling fee
22,105,992
23,508,687
106.3
464,100,450
493,483,895
106.3
Total
Realised betting turnover
Games
2009
2010
Ratio 10/’09.
Lotto 7/39
381,672,172
260,260,034
68.2
Super 7
100,437,242
69,974,458
69.7
Lott 6/45
41,880,084
44,819,708
107.0
Joker game
72,600,455
50,026,195
68.9
Totto 13
1,635,992
1,502,180
91.8
Break open tickets
20,666,790
18,141,105
87.8
Instant lottery
31,643,492
27,568,593
87.1
Occasional
lotteries
9,391,086
7,838,370
83.5
TV Bingo 15/90
107,486,500
101,894,280
94.8
Bingo plus
37,969,446
35,470,956
93.4
Keno
15,837,151
12,141,820
76.7
Total
821,220,410
629,637,699
76.7
Total sales of lottery games in
2010 dropped compared to 2009
by 23.30%, and in addition to economic crisis and recession, which
led to a drop in consumption (and
production) and thereby reduced
funds intended for fun and entertainment, the record jackpot in
June 2009 of 53.8 million also
influenced the decline in turnover compared to the previous
year.
Turnover of lottery games in 2010 (in mil. HRK.)
400,0
2010
360,0
2009
320,0
280,0
240,0
200,0
160,0
120,0
80,0
40,0
Lotto Super 7 Lotto
7/39
6/45
Joker Totto 13 Break Instant Occasi. TV Bingo Bingo
game
open lottery lotteries 15/90 plus
ticket
Keno
HL today
0,0
14
HL 2010
The negative trend is also present in the segment of casino games and slot machine clubs,
where the crisis began to be felt considerably in
April 2009 year, when the first serious drop in
revenue was recorded. As this trend continued
in 2010, the realized revenues were not sufficient to provide funds for development and
investment programs that would lead to their
increase.
The implementation of the Act on the Prohibition of Use of Tobacco Products and illegal competition (on-line organisers, “black”
slot machine market and illegal organization
of games and tournaments in Texas Hold’em
poker) also had an important and negative role.
Revenues from games of chance in Casinos and Slot machine clubs
Description
2009
2010
Ratio 10/’09.
Slot machine clubs
59.950.376
42.872.383
71,51
Casinos
43.394.565
28.522.048
65,73
GRAND TOTAL
103.344.941
71.394.432
69,08
Revenues from games of chance at Casinos and Slot machine clubs (in mil. HRK)
60,0
Casinos
50,0
Slot machine clubs
40,0
30,0
20,0
10,0
2009
2010
HL today
0,0
15
T
echnology
Nowadays, a modern
company can do business only
with the help of complex IT
solutions. As all around the world,
at Hrvatska Lutrija the role of
IT has gradually changed, i.e. IT
support does not only serve as
business support, but it makes
an active contribution to its
development.
In addition to contributing to the optimisation of business processes and cost cutting, IT’s
contribution to sales growth and thus business
success is becoming more and more evident.
This requires closer cooperation of IT and business processes.
In accordance with these trends and the
Management’s expectations , in 2010 the
key project – a subsystem for selling all
our products via the Internet (I-system) –
was implemented..
The integration of such a demanding system
into the existing information system of Hrvatska Lutrija significantly changes its properties
by increasing the required level of system availability (7 days/24 hours), with provided additional security due to an open system, suitable
throughput as well as better control and maintenance.
These requirements, as well as many others,
are realised with significant quality improvement of the whole infrastructure.
Applications and system-communication
solutions are oriented towards building a service-oriented architecture to achieve maximum
flexibility and expandability.
HL today
HL 2010
16
M
arketing
IMAGE
Hrvatska
Lutrija
web.
Introduction of the
Internet as a new sales
channel had a significant
impact on marketing
activities, because due to
new options for playing our
most popular games, they
have become much more
accessible to new target
groups of potential players –
young population.
The active role of marketing in this project,
from support to development of a system for
game payment via the Internet to putting into
operation/launching, was extremely important.
Because of the introduction of a completely
new way of playing, the structure of www.
lutrija.hr portal, had to be changed in visual,
conceptual and functional terms.
Special attention was paid to the concept and
design of the entire portal, and the guiding idea
of the project was “a player in focus.” Although
relatively new, the dimension of responsible
gaming is very well implemented, and pages
allow visitors easy navigation and visibility, as
well as easy control over spending, i.e. playing,
and the possibility of banning oneself.
Satisfied players, positive reactions, compliments and comments that followed shortly
after the opening of the new sales channel, are
a testimony to a job well done.
Comprehensive content, a lot of information and the up-to-date status of other pages
are also important. Statistics related to lottery
draws and sports events were the most inter-
esting topics for betting fans. In addition, a total of 249
articles: various news and announcements were published on the www.lutrija.hr portal in 2010.
The possibilities to pay for the games, a new design
structure, with updated and timely publication of information have given excellent results as expected. From 1
January to 31 December, we had 1,594,741 individual
visitors (about 300,000 more than in 2009) who visited
Visits per month:
Month
Number of
visits
Number of
individual
visitors
Number of
opened pages
January
728.995
238.821
1.713.026
February
677.310
205.726
1.497.164
March
668.324
190.833
1.449.295
April
625.347
186.295
1.384.048
May
617.925
180.712
1.323.440
June
500.886
156.424
1.090.551
July
452.275
144.323
1.017134
August
469.062
147.159
1.050.572
September
604.401
174.016
2.324.120
October
718.573
190.097
2.988.233
November
793.938
212.161
3.453.161
December
798.281
218.807
3.674.076
HL today
HL 2010
17
HL 2010
our portal exactly 7,655,317 times with a total of 22,965,801 opened pages.
A sudden, but expected, increase of individual visitors is obvious in September 2010 due
to the introduction of payments through the
Internet. The increase in visits to our site and
the number of registered users is partly influenced by good marketing support and synergy
of promotional activities and PR.
Promotional activities
Advertising campaign oriented toward online
advertising demonstrated multiple efficiency
in terms of the number of readers compared to
campaigns in classic media, and at a lower cost
if quantity and visibility of “advertisements”
are compared. By advertising on the most
visited portals in a very short period we have
increased the number of visitors of our website. Through targeted promotions, along with
enhanced web marketing, we have contributed
to the rapid growth in the number of users,
but also to the increase of the share of Internet
sales in total turnover.
IMAGE
Internet
games:
Lotto
Bingo
Keno
HL today
In addition to advertising through “traditional” media, online advertising is supported
by a number of promotional activities, among
which we emphasize institutional and internet
campaign “For all who love to play”. “. In
a series of five short TV spots a typical family
with a witty and vital grandfather as a dominant
character, presents in an excellent way the simplicity and beauty of games in the life of every
individual, regardless of age, and the game he/
she plays. In addition to advertising on TV, in
newspapers and on the Internet and PR, we
opened a Facebook page for younger population with a distinctive main character “Grandfather from Lutrija,” which made over 2000
friends in a short time. The quality of this advertising campaign is confirmed by the fact that
it qualified for the X award Best admaking
in the category of integrated marketing at the
national festival of IdejaX advertising.
“For all who love to play”
Competing for X award Best admaking in the
category of integrated marketing at the national
festival of IdejaX advertising.
18
Bubanj
watch (CRO)
Listić
watch (CRO)
Kolo
watch (CRO)
18+
watch (CRO)
Jackpot
watch (CRO)
HL today
HL 2010
19
HL today
HL 2010
20
HL 2010
Public relations
Extremely negative publicity has followed all
the companies controlled by the state throughout the whole year, the year that will surely be
remembered for numerous scandals. In this
context, Hrvatska Lutrija was also mentioned,
on occasion and usually only in listing the
state-owned enterprises, which were all, to a
greater or lesser extent, under the scrutiny of
the media.
Through strategically designed media relations, that represent an important role in positioning toward all audiences, during November
and December we succeeded in strengthening
the positive image of Hrvatska Lutrija. A communication plan was prepared under which
a series of communication activities have
been defined and implemented, from placing
positive articles, stories about specific events,
through public discussions on developing a
new visual identity, to the production of Q &
A document (Questions & Answers - a list of
potential questions and answers that media
representatives may ask and which can harm
the reputation of Hrvatska Lutrija).
To find out what the media are saying about
us, and then to analyze all the information
gathered, we have been cooperating with agencies providing these services. In the period
from 1 January to 31 December 2010, Hrvatska Lutrija featured 699 times in the whole
Croatian media space, with the total estimated
value of HRK 14,371,052.29.
The most frequent texts were of neutral orientation (76%), followed by texts of negative
orientation (21 %) and then articles with positive connotation (3 %).
Through the analysis of unpaid (free) publications in the media, comparing their number,
value and effect on yearly basis, agencies specialised in monitoring and analysis of the media estimate the actual value of the PR effect.
Pie chart representing articles of different orientation
Positive 3%
Neutral 76%
Negative 21%
There is a total of 25 articles which provided positive publicity to Hrvatska Lutrija (positive and neutral – positive) whose estimated value amounts to HRK
472,917.00 and there are 32 articles with negative connotations (negative and neutral – negative) whose estimated value is HRK 3,038,845.29. The largest number
of articles has entirely neutral connotations – as much as
642, of the estimated value of HRK 10,859.290.00.
Values of article of various orientations (in HRK)
12000000,00
10000000,00
8000000,00
6000000,00
4000000,00
2000000,00
0,00
NEGATIVE
NEUTRAL
POSITIVE
HL today
Results we achieved in the public relations
segment confirm that investment in marketing
communications will pay off many times over.
21
HL 2010
If we added up the amounts of
neutral, neutral-positive and positive
articles and deducted the amounts of
negative and neutral-negative articles, we would get a realistic estimate of PR effect amounting to HRK
8,293,361.71.
A
Analysis of unpaid (free) announcements in the media for all orientations
Number of
articles
Value
2
42.909,29 kn
Neutral
642
10.859.290,00 kn
Neutral-negative
30
2.995.936,00 kn
Neutral-positive
6
180.197,50 kn
Positive
19
292.719,50 kn
Total
699
14.371.052,29 kn
Subject orientation
Negative
wards
Superbrands
In 2010, Hrvatska Lutrija was listed among
the leading brands in Croatia based on votes
and monitoring of the international Superbrands organization whose votes were complemented by votes of more than 23,000 consumers.
Vidi Web Top 100
HL today
The website of Hrvatska Lutrija was listed
among the top 100 pages of the national Vidi
Web Top 100 competition and among the top
10 in the category “Government organizations and state institutions”.
22
HL 2010
We made happy those who had never even
dreamed of big prizes as well as those who
had hopes for a prize, but who were convinced
that luck always passed them by. We also made
happy those who realized their old dreams by
wining prizes, as well as numerous players who
did not won big prizes, but who recognized
entertainment and pleasure of the game in our
diversified offer.
Many players of our games of chance had the
opportunity to experience the stroke of luck.
IMAGE
Instant
lottery
Duplo
Many fans
of lotteries,
printed in 15
series, won
great cash
prizes, and 60
lucky winners
got new cars
in our games.
We witnessed many touching stories, tears of
joy and true happiness owing to prizes won,
and we managed to meet some of them.
In 2010, playing games of chance of Hrvatska Lutrija, players won 33 JACKPOTs and
shared a staggering HRK 131,529,332.62.
The highest JACKPOT was won in Lotto
7/39 (Super 7), i.e. HRK 38,425,957.05 by
a player from Zelina.
The luckiest game in 2010 was Joker game.
Throughout the year JACKPOT was hit as
much as 16 times, and the eighteen lucky
winners won a total of HRK 47,109,577.42.
The luckiest city was Zagreb, with as much
as eleven JACKPOTS, and the winners won
HRK 19,663,629.80.
5
7
15
22
23
24
25
35
IMAGE
Winning
ticket
Zelina
HL today
In addition to these awards, 2010 was characterized by other nice events. Many players
of our games of chance became millionaires,
and owing to all those who play our games of
chance, we were able to provide generous support when it was needed the most.
23
HL 2010
Corporate
social responsibility
We organise and conduct games
of chance in a socially responsible manner to meet the needs for
games of chance, taking care that
commercial activity is conducted in
parallel with the processes of corporate social responsibility.
The principles of corporate
social responsibility are in
line with the set objectives:
••
To grow in terms of increasing income and
to maintain or increase the market share by
increasing the number of players participating in games with moderate, affordable
amounts, who opt for Hrvatska Lutrija as
their trusted and reliable game organiser.
••
To be recognized primarily as a responsible
organizer which requires that any business
move of Hrvatska Lutrija is permeated with responsibility. Simply speaking, to be the best choice in the
market in terms of taking care of reducing the risk
of socially undesirable gambling, to spread knowledge about all aspects of games of chance and to
support efforts to ensure safe, healthy and secure
gambling to players.
••
The long-term task is to achieve stable revenue, control costs and manage them, while building a protected and responsible gaming environment.
••
To base its relationship with employees on the recognition that sustainable growth is possible only if
the company has professional and creative employees satisfied with their work and work environment.
SR business activity
Corporate social responsibility in everyday
practice is integrated into job descriptions of all
employees of Hrvatska Lutrija, and the Corporate social responsibility and international affairs
department, is responsible for developing, implementing and monitoring the implementation
of policies, strategies, processes, tools and application of corporate social responsibility tools,
with special emphasis on responsible gaming.
24
HL 2010
Hrvatska Lutrija shows
its corporate social
responsibility by:
••
Ensuring the work environment that enables respect towards workers (no discrimination, respecting human rights, enabling
professional development, etc.) and encourages the personal development of
employeess
••
Implementing the anti-corruption program,
adopting codes of conduct and promoting
high ethical standards
••
••
Receiving students for training to prepare
them to enter the world of business
Providing support in form of sponsorships and donations for good causes and
initiativesSponsoring sporting events in
the community, particularly by supporting
amateur sports
••
Maintaining or supporting the organization of educational programs in the community, especially
involvement in educational programs and research
in the field of problem gambling
••
Supporting institutions whose activities contribute
to preservation of public order and health, especially those dealing with prevention and remediation of
potential harmful effects of games of chance
••
Organizing responsible manner.
For more complete integration of all organizational
units with the principles of corporate responsibility and
supervision over the consistent implementation of the
objectives, the Commission for responsible gaming was
founded as support to the Corporate Social Responsibility Department.
••
Caring about the environment (collection
of hazardous waste, saving paper when
printing, reduction of energy consumption)
25
R
esponsible gaming
Responsible gaming of
chance is the key element of corporate social responsibility of Hrvatska Lutrija and one of its main
priorities. It is of particular importance for the community, because
inadequate organization has extremely harmful consequences
for the community: criminal activity and deterioration of users’
health.
Through preventive measures and implementation of Responsible Gaming Standards the
conditions are created for a good long-term relationship with the users of our services, players, all our stakeholders, and thus for long term
profitable business. In order to attract our players to responsible gambling, we enable them to
build their own ways to manage their gaming,
to have the feeling of control over it and that all
this is based on their free will.
Particular attention is paid to the education
of our employees in this area. Namely, employees, especially those who are in contact with
players, should be informed and aware of what
the program of responsible gaming means and
what is their role in its implementation. Hence,
we established active cooperation with
the leading Croatian experts in the field
of treatment of problem gambling in 2010.
They are involved in a series of lectures titled
“Responsible gaming” for management and
internal coaches. Thereafter, internal coaches
organized training on the same topic for all
other employees.
Responsible gamin, in short term, represents
a burden to the organizer who operates in a
liberal, overheated market, but in the long run,
the responsibility recognized by stakeholders, especially the users themselves, represents
a comparative competitive advantage and a
prerequisite for sustainable business. It is de-
manding because it requires consistency in terms of
real commitment to caring about public order, health
and protection of public interests. This orientation, defined in the vision and mission of Hrvatska Lutrija was
confirmed by signing the acceptance of “Principles of
responsible gaming”, enacted by „World Lottery Association“ and “Responsible Gaming Standards” of the European Lotteries association.
The implementation of responsible gaming standards
in accordance with the current trends in Europe, is the
basis for execution of one of the primary tasks of a responsible, controlled organizer – i.e. consumer protection and directing players toward a reliable organizer.
Implementation of the European Responsible
Gaming Standards and preparation for certification was one of the business goals in 2010.
In order to realize this goal, on 19 January 2010, the
Operating plan for responsible gaming was adopted. The
Plan is based on the EL’s Responsible Gaming Standards
and it has focused the activities of all employees on ten
basic areas of activity:
••
••
••
Research
Training for employees of Hrvatska Lutrija
Education programmes for sales agents – lotteries
HL 2010
26
HL 2010
••
••
••
••
••
••
••
Game design
Remote gaming channels
Advertising and marketing
Treatment referral
Player education
Stakeholder engagement
Reporting, measurement & certification
Research and preliminary
activities
Being aware of limitations imposed by the
economic situation in the country and our own
limited resources, we mitigated the effect of the
lack of local research projects by continuous
gathering and following the results of international research studies. By publishing of these
research studies on the company’s Intranet site
and through public statements of our employees, we forwarded information about them as
well as about the sources that can broaden the
information to interested stakeholders (to scientists cooperating with us, the relevant regulatory authority and the wide public through
appearances in the media).
IMAGE
Dr.
Neven
Ricijaš
Team
was established with the team of Dr. Neven Ricijaš,
from the Faculty of Education and Rehabilitation
in order to develop preventive methods to combat
addiction among minors, which includes the study
of the prevalence of addiction in this group.
A presentation of their pilot study was organised for
our employees, representatives of the Ministry of Finance, and experts in the field of addiction treatment.
Hrvatska Lutrija also participated in the First Croatian
Congress on the prevention and rehabilitation in psychiatry in Sv. Martin na Muri in June, and it presented
the concept of responsible gaming. The same was also
presented at the 2nd Business Education Days, held in
Zagreb in May.
Prevention and education
programmes
In 2010, all our employees were informed about the
program of responsible gaming, and training courses on
responsible gaming were organized for employees whose
job description required interaction and communication
with players.
We prepared manuals required for employee training
and promotional materials for the education of players:
••
••
••
Contacts have been constantly made and
maintained with all parties interested in starting research on the incidence of excessive gaming and its social consequences. Cooperation
Responsible gaming manual - for those who want
to know more,
Responsible gaming manual for slot machine
clubs and casino employees - Instructions for lotteries and betting salespersons, which has become
an integral part of the Work instructions for selling staff,
Leaflet “To keep the game fun ...” - a self-assessment test and instruction for responsible gaming.
A separate manual was prepared for internal coaches.
It presents in detail the topics that are an integral part
of salespersons’ training, and the presentation used in
education, and all materials are submitted for the insight
and opinion of our expert associates specialized in problem gaming.
and business associates
27
HL 2010
IMAGE
“To keep
the
game
fun ...”
poster
In February we prepared an education
programme for employees of Hrvatska
Lutrija - Module 1 - “Introduction to responsible gaming (DOP)”. Active cooperation with psychiatrists of KBC Sestara
milosrdnica Vinogradska, Zagreb - Doc. D.
Sc. Zoran Zoričić and Robert Torre, M.D.
commenced. These specialists held a series of
educational lectures to the employees of Hrvatska Lutrija on “responsible gaming- a psychiatric perspective and experiences in the Republic
of Croatia.” Seven trainings were held, attended by 156 participants, ranging from
the Management, employees, to representatives of the Games of Chance, Amusement and
Prize Games Department from the Ministry of
Finance. The
presentation
“Establishment
and development of the
support network in treatment” prepared by Doc.
D. Sc. Zoran
Zoričić was
used in education.
In the second
half of the year,
internal coaches conducted employee training
within the Sales Department, selling staff in the
sales network of lotteries and betting, as well as
employees of our slot machine clubs and casinos. In September and October we organised
training for the representatives of our authorized partners, such as Hrvatska pošta, Tisak,
iNovine, Slobodna Dalmacija, Smoking, etc.
who are obliged to educate their salespersons.
In addition to training for the sale of games of
chance, each new salesperson must be educated about the responsible gaming.
On Intranet sites informative materials on responsible
gaming were published. The same topic was presented
in the internal monthly newspaper of Hrvatska Lutrija
“Bubamara” and the objectives of education were: better understanding of the nature of games of chance and
players’ psychology, raising awareness of the excessive
playing of games of chance, understanding and promoting the concept of responsible gaming, and understanding the role and responsibility of organizers, as well as
individuals.
Game design
In 2010, we commenced with the independent development of tools and protocols for assessing the presence
and intensity of risk factors for the development of addictive behaviour in the structure of new games that will
be applied before the introduction of each new game, as
well as for reviewing the redesign of the existing ones.
Faced with the fact that a large part of our offer is offered at a highly competitive market, Hrvatska Lutrija,
as a responsible organizer, authorised by its owner, the
Government, to organize games of chance in a responsible manner, safe for all citizens of the Republic of
Croatia, it is imperative that, despite some risk elements
of our games, we persist with in organizing them in the
manner that will make them attractive enough to direct
players to us, and simultaneously, competitive enough to
make this attempt successful.
Our task is to reduce the drain of players toward illegal
organizers, especially Internet operators, and thus not
only to reduce the outflow of funds but also the danger
of abusing the players’ trust – by deception and fraud.
Notwithstanding this concession, the prepared tools
will serve us to locate the most risky elements, in order
to keep them under control. By correcting some elements, if any, points of sales and manner of sale and
promotion of game, we would reduce the overall risk in
the end.
Remote gaming channels
A platform for remote gaming has been developed
We are grateful to Dr. Elvira Kojić, who allowed us to use her work related to problem
gambling and dr. Zoričić who reviewed our
materials.
28
HL 2010
to include all elements of responsible gaming
standards: information about chances on winnings,, ability to register only the adult citizens
of the Republic of Croatia, control of data protection, strict control of the statutory age limit,
the possibility of setting up own limitation of
funds that a player stakes and the loss amount
that he/she is willing to accept, the history of
each player’s gaming, information about potential dangers of problem gambling, a section
on the website of Hrvatska Lutrija with expert
information about the problem of addiction
and tips, promotional material for responsible
gaming, self-assessment test, phone number
where professional help and treatment can be
requested and, finally, the possibility of temporary or permanent self-banning.
Advertising and marketing
We apply these basic principles in advertising:
intended to sensitize players to the problem that gaming can bring about, can be recognized in the message
“To keep the game fun (it is good to know whether you
should stop)!”.
Cooperation in prevention and
treatment of problem gambling
There is continuous Cooperation with specialists in the
field of combating addiction, specifically, with the team
led by Dr. Zoran Zoričić. We support their activities
and the attempt to solve the treatment through institutions at the national level. We supported the project
“Therapeutic groups of the gambling addicts,” club
with a donation.
During the year, forms for self-banning became available at our slot machine clubs and casinos, and since
September they have been available on the website, too.
So far 8 people requested banning, four permanently and four temporarily.
IMAGE
Dr.
Zoran
Zoričić
••
••
••
Not addressing young age groups and other
vulnerable groups,
We do not advertise in the media or programs intended for the youth,
We do not promote games of chance as a
solution to life problems or the means of
success that could replace work and other
socially accepted ways of personal fulfilment.
At www.lutrija.hr corporate socially
responsibility is especially emphasized in
order to promote a responsible approach.
Promotional material at our points of sale,
On our website and in leaflets and posters players can
get detailed information on the probability of winning in
any game, so they could assess the risks and chances on
winnings, information on age limits, information about
responsible gaming, as a well as on responsible organization of games and where they can get help in case of
excessive gaming.
In our public appearances, such as in the TV show Ekspertiza, in articles about corporate social responsibility
Moreover, advertising in 2010 was based on
the message “For all who like to play” which, in
a humorous way presents gaming primarily as
a fun and joy within a very successful and integrated campaign.
29
HL 2010
of various newspapers (Poslovni dnevnik and
Vjesnik), we also emphasize the importance of
responsibility of all stakeholders in the gaming
market, as well as the role of being informed in
making conscious decisions.
Another collaboration says about continuous
monitoring of the attitudes and needs of our
stakeholders. Following the article published
about disappointing results of the study of the
prevalence of drug use conducted by young
“psychologists” from Karlovac high school, we
have established the contact with the project
manager. It was agreed the testing the impact
of education on behaviour and attitudes of minors to be done in Karlovac. On the one hand,
this town is characterized by high incidence of
the phenomenon of addiction, but on the other
hand, obviously, by awareness of its existence
and harmful effects. As young researchers have
found that among gambling addicts there is
significant number of those who came in contact with slot machines in their early age, we
consider that timely action to educate young
people should be the primary obligation of the
organizer in preventive actions.
We are convinced that the efforts of the scientific research team, determination and commitment of Hrvatska Lutrija to support them in
their work, will produce results. Adoption and
implementation of the principles of responsible behaviour by new generations in terms of
gaming are the objectives are that we want to
achieve by all of these activities.
Continuous communication with the representatives
of the regulatory body is also focused on the prevention
and implementation of responsibility in all actions of all
participants in the gaming market in Croatia and adoption of the principles of a sustainable market. Only in
this way, it is possible to satisfy players in terms of fun
and prizes, but also the community as a whole, through
funds collected for socially beneficial activities with
minimized adverse effects..
Reporting
As already mentioned, continuous education and
information are available to the employees of Hrvatska
Lutrija on the Intranet - internal website, and through
internal bulletin “Bubamara”. Additional information
and clarification can be requested directly from internal
coaches and employees of the DOP Service.
Information on activities of responsible gaming, objectives and effects are available to players and to the public
on the website of Hrvatska Lutrija, in this Annual Report for 2010, and they are also contained in all types of
communication to the groups of interest and influential
groups, the regulator, professionals and the media.
In addition to information officer, as a part of implementation of the Anti-Corruption Plan, a person responsible for implementing standards for the protection
of players was appointed.
Therefore, we have paid special attention to
cultivate relationships with the professionals,
especially psychiatrists, who in their work, deal
with persons addicted to gambling and offer
them help on their way of healing.
30
R
esponsibility
towards employees
On 31 December 2010 Hrvatska
Lutrija had 1,373 employees, of
which 1% with permanent employment and most of the other employees with temporary employment.
The composition of the workforce in terms
of sex is still dominated by women, with 70%
of total employees. The majority of employees
(76%) have secondary school qualifications. In
2010, a total of 19 employees were hired, of
whom 15 with temporary and 4 permanent
employment, mainly for the needs of Sales
Department. In 2010, the number of employees
was reduced by 69 or 4.8%.
IMAGE
Internal
newsletter
“Bubamara”
There is awareness that it is of the highest
importance to
communicate,
systematically
and continuously, critical
information to
employees and
that the internal
communication
should be a twoway process
between employees and the
management.
The most common and most important channel of internal
communication in Hrvatska Lutrija is meetings
with managers and regular written notices and
instructions are distributed by e-mail, bulletin
boards and Intranet. Employees are encouraged to proaction and taking initiatives through
competitions for innovation/improvement of
operations. Due to the dislocation of many
employees, internal newsletter “Bubama-
ra”, a monthly magazine, is still a very popular
medium of internal communication, whose editorial
team strives to convey all relevant information, notices
and trivia.
In time we live in, we are aware that business performance of each organisation, i.e. Hrvatska Lutrija as well,
more and more depends on the knowledge, skills and
satisfaction of its employees. Therefore, taking care of
human resources is an inherent part of our operations. It
is implemented through occupational safety and health
care management system and through an entire strategy
of development of human resources: recruitment, compensation, motivation and ongoing education and development. In order to meet the expectations of our players,
we have been continuously working to improve business
and performance of the company. Only efficient, motivated and loyal employees are able to achieve it.
Safety at work
Within the scope of safety at work, a series of preventive measures were conducted in order to achieve a
higher level of safety, protection and preservation of the
employees’ health.
All activities are in compliance with the professional
requirements and recommendations of the competent
authorities, and they are based on the Occupational
Safety Act.
Number of injuries at work is one of the indicators of
success, which confirms the quality and the volume of
efforts made in implementing the training of employees
for work in a safe manner.
HL 2010
31
HL 2010
However, crisis events are, unfortunately, a
part of our job (robberies, holdups ...) Understanding the concept of crisis and crisis events
is very important for the success of “helpers” who provide assistance to people in crisis
events. It is therefore necessary that “helpers”
have a basic knowledge of crisis intervention
in order to provide better support to their
colleagues and themselves in order to deal
easier with crisis events. For this purpose training “Support after, stress, traumatic and crisis
events at work” for coordinators and directors
of branch offices was organised.
In 2010 implementation of education and development of employees in all aspects of business activities and at all organizational levels
continued, guided by the principle that the way
of managing human resources directly affects
and contributes to the competitiveness and
business excellence of the company.
Study of the organisational
climate
In February 2010, all employees were invited
to participate actively in the study of organizational climate and job satisfaction, which is one
of the most common channels of internal communication in business organizations.
Nearly half of employees, i.e. 672 or 47% responded. Answers of most employees indicate
extremely high proportion of loyal and committed employees. In other words, whenever
they have an opportunity, the employees of Hr-
vatska Lutrija speak positively about their company, they
are willing to invest even more effort into their jobs than
is expected from them, they would not easily decide to
leave the company, and they feel a strong affiliation and
loyalty to Hrvatska Lutrija etc.
As much as 60% of them have never thought
about changing jobs. Employees who would like to
change jobs in the future think about other jobs, but
within the present company. Only 2% of workers would
prefer to work in the future with another employer.
When analyzing certain aspects of the organizational
climate, employees evaluated “orientation to players and
quality of services” and “relationship with immediate
supervisors as the best ones.
Graph presenting grades (from 1 to 5) of individual aspects
of the organisational climate
Focusing on
player and
quality of service
Immediate
supervisors
Information and
communications
Learning and
development
Job performance
and remuneration
Employment
HL Management
and governance
0
1
2
3
4
5
Study of the organisational climate
HL, same job - 48%
HL, other job - 50%
Other employer - 2%
Most of occupational injuries were caused by
armed attacks on employees at points of sale
and it decreased compared to the previous year
owing to the installation of bullet proof partitions at points of sales, which created psychological safety and a physical protective barrier
against possible injury to employees. By further
installation of bullet-proof partitions at points
of sales further safety of our employees will be
increased so that the holdups, as a cause of occupational injury, will be minimized.
32
HL 2010
It is known that not all people have the same
motives and values in business. Most employees mentioned the following as the most
important at work: 1) relationships with colleagues/associates, 2) job security, without fear
of termination, 3) good salary, which allows
a “decent” life, 4) good relationships with immediate superiors and 5) clarity of tasks that
they have to do. Employees agreed that their
company enabled them, to a large extent, the
realization of these (for them the most important) aspects of the job. Aspects of the job that
were very satisfying for employees are: 1) relationships with colleagues/associates, 2) contribution of their job to the business objectives of
the company, 3) clarity of tasks to be done, 4)
quality of relationships with immediate superiors and 5) company’s care about the health and
safety of employees.
These results of the study of organizational
climate and job satisfaction result from continuing care about employees through various
aspects. In addition to regular payment of salaries, in 2010, Hrvatska Lutrija also met all other
obligations assumed by Collective Agreement.
As a result of social dialogue with trade unions
on 26 September amendments to the Collective
Agreement were signed stipulating that in 2010
wages will not be harmonized with the cost of
living, and that in 2010 Christmas bonuses will
not be paid out. In addition to remunerations
and support agreed by the Collective agreement in cases of severe illnesses, employees
received support through co-financing of treatment costs and medical rehabilitation costs, as
well as of the purchase of medicinal products
and aids.
Suggestions by employees
Rulebook on suggestions by the employees has been in
effect for a couple of years and its basic task is to provide
to employees who have ideas and initiatives to improve
operations the legal framework and the opportunity to
submit officially their proposals for consideration by a
relevant body. There is a wide range of areas open to
suggestions - from the organization of the company,
improving individual work processes, improving existing
games of chance and betting, development and introduction of new games, responsible gaming to promotional activities.
The Rulebook has justified its existence on several occasions, and last year it recorded the highest number of
suggestions sent so far to the competent committee for
consideration and review.
A total of 15 suggestions (individual and group) were
submitted for the contest on the occasion of the Environment Day published in the internal bulletin Bubamara in March last year. Proposals submitted were
of high quality, and some of them were applied in business activities. The proposal of one employee to publish
a special series of instant lottery with the image of the
Mediterranean monk seal, or “seaman” was implemented
in the same year.
The proposal is aimed at preserving the biodiversity
of the Adriatic Sea, i.e. the protection of endangered
animal species and, in this sense, it has achieved great
success. In addition, Hrvatska Lutrija awarded the three
most successful proposals with cash prizes. And one of
the main goals of making the contest - to raise environmental awareness in employees, players, suppliers and
other stakeholders - was fully realized.
Average job satisfaction of employees in
Hrvatska Lutrija was graded with 3.60 (on
the scale from 1 to 5)..
33
HL 2010
Acknowledgments
Managing and Motivating People
In late 2010, the attention of expert public
was attracted by the book Managing and Motivating People. According to many assessments
it is the excellent reference book for working
with people, but it also confirmed the achievements of Hrvatska Lutrija in the segment of
relationships with employees. The team of
authors brings together six proven experts
in management and human resources and 19
practicing managers, and the book contains
70 professional articles and 19 features from
the practice of Croatian companies. Hrvatska
Lutrija - Vision, Mission as motivators, internal
competitions, DOP ... “ is an article in a series
of stories about strong motivators implemented in business activities of Hrvatska Lutrija.
An example from our practice presents to
the general public the most effective method of
internal training - internal training, conducting a research of organizational climate and job
satisfaction and motivation competition titled
“Choosing the best branch office, slot machine
club and point of sale,” which we have been
organizing six years in a row.
Employer Partner Certificate
Successful HR management of Hrvatska Lutrija
was confirmed for the
third year in a row by the
awarded Employer Partner Certificate in spite of
harder business operation
conditions and more exacting standards set by the
certificate provider.
34
S
ocial
responsibility
Business ethics
Business ethics is defined as the application
of ethical principles in all business activities,
and taking into account preparations for the
membership of Croatia in the European Union, the issues relating to the application of
the principles of business ethics and corporate
social responsibility, are even more important.
Starting from the fundamental principles of
good management and good business practices
that are in line with ethical, moral and professional standards as well as general civilization
values, many business activities were successfully implemented in 2010.
First of all, the year began by adopting the
Code of Conduct, which includes the relevant
business areas: reputation and quality assurance, attitude to work and co-workers, responsibility, health protection, behaviour and
conflict of interest, receiving or giving gifts or
services, protection of property and confidential information and the manner of its application.
In order to develop and encourage excellence in work by raising the level of ethical
competence and promoting the zero tolerance
approach to corruption, a one-day course on
“Business Ethics in function of company success” was organized for all levels of the management as part of the action plan for implementing the Anti-corruption programme for
companies in majority state ownership for the
period 2010-2012. The attending employees
rated the training as highly useful and stimulating to thinking about mostly about their own
moral standards and behaviour.
In accordance with the planned schedule for implementation of action plan, competent and responsible
persons to monitor irregularities and ethics were appointed.
The system of “Notifications of irregularities” was
established to enable employees, players and business
partners to communicate or point to violations of the
Code of Conduct, as well as other irregularities in business, such as fraud or illegality.
Although protected by full confidentiality of the proceedings, both for transparent and for anonymous notifications, a single notification has not been received in
2010.
An Ordinance for the Prevention of Corruption was
prepared and adopted in the form of a guide that includes specific values and rules to prevent corruption.
These guidelines emphasize professional behaviour of
employees in relation to gifts and benefits received from
business partners, to ensure the impartiality of employees and regulate the possibility of performing extra work
outside office hours.
The website of Hrvatska Lutrija contains the Information catalogue that provides continuing insight into the
relevant business information to stakeholders (players,
business partners, employees ...) relating to:
••
••
Business – Management’s decisions, plans, financial
and auditors’ reports,
Procedures of public procurement – invitation for
tenders, tender documents, reports on opening of
bids, decisions of commissions and contracts,
••
Employment procedures – announcements, statuses
and decisions.
HL 2010
35
HL 2010
The manner in which Hrvatska Lutrija implemented the Anti-corruption Program has
been appreciated in the general public. At the
conference titled Internal audit and control, organized by the Association of Accountants and
Financial Experts, in Vodice, Croatia, in September 2010, the representative of the Ministry
of Finance, Ms. Stepić, pointed out Hrvatska
Lutrija as an example of a public company that
had successfully started with the development
of better financial management and implementation of the Anti-corruption Program.
As an entity liable to implement the Law on
anti-money laundering and terrorist financing measures and actions stipulated by the Law
have been introduced and constantly implemented. Here are some of them:
••
••
responsible persons and their deputies
have been appointed
risk assessments and implementation of indepth analysis have been introducedlist of
identifiers for identifying suspicious transactions is defined
••
a list of identifiers for identifying suspicious transactions has been defined
••
tools for their processing have been introduced, harmonised with specific activities
we perform
••
the Regulation on the measures and actions
to prevent money laundering has been definedd
••
reporting to the Prevention of Money
Laundering Office has been introduced
for each cash transaction in the amount of HRK
200,000.00 and more, as well as transactions of
amounts less than HRK 200,000.00, whether in one
or more related transactions, if under the list of
identifiers there is any suspicion of money laundering and/or financing of terrorism.
A total of 7 cash transactions resulting from realized
betting and lottery prizes were reported to the Prevention of Money Laundering Office in 2010.
Sponsorships and donations
In 2010, we witnessed many nice events, and Hrvatska
Lutrija, as the leading organiser of games of chance, once
again showed that it not only offers fun and enjoyment
in games, but that through its activities it also raises
funds for financing various cultural, humanitarian and
sports organizations and events.
The goal of Hrvatska Lutrija is not only a successful
business, but finding ways to contribute as much as it
can to the community, to enrich and develop the community and to improve the quality of life, and generosity
and solidarity are most clearly shown by helping everyone in need.
The action “Something has to be put under the
Christmas Tree” has been implemented and coordinated for the fourth year in a row and, in accordance
with the motto “More than a game” a part of income
from Christmas lottery sales was intended for gifts to
children and young people without adequate parental
care. In this way funds were provided for approximately 1,500 children in 23 homes, and each child
received HRK 150.00 to buy a gift according to his/her
choice. The drive was further enriched by the competition for the best art work titled “Christmas Motives”.
Children are encouraged to creative expression, fun
and playing in this drive. The most successful young
authors will be rewarded - not only with the appropriate
financial amount of HRK100.00 per month throughout
the next year, but their work, depending on the quality of
the 12 most successful works, may adorn the Christmas
lottery ticket in 2011. Children’s creative efforts using
various techniques to create these motives, deserve to be
presented in our Report as well.
Pursuant to the Law on the Right of Access to
Information, all employees, players and business partners are allowed to submit an application for and obtain additional information.
36
HL 2010
IMAGE
IMAGE
Leona,
7 y.
Lorena,
5 y.
IMAGE
In the
middle
Frane, 9
god
Ivan,
10 y.
IMAGE
Marica,
10 y.
IMAGE
Jasmina, 7
y.
IMAGE
Kristina,
11 y.
IMAGE
37
HL 2010
IMAGE
IMAGE
Franko,
9 y.
Matea,
11 y.
IMAGE
IMAGE
Domagoj, 9
god
Evica,
7 y.
IMAGE
Gabriela, 8 y.
38
HL 2010
Series of express lottery EKO ETHNO
promoted the drive of Hrvatska Lutrija and
Hrvatski farmer d.o.o., and a part of income
from the sale of lottery tickets was intended for
the development of rural tourism in Croatia.
As partners attended the Second Congress on
Rural Tourism with international participation
on the island of Mali Lošinj, and we were also
sponsors of the competition Rural Tourism
Sunflower wherein tourist farms are rated.
COC (Croatian Olympic Committee) and
Hrvatska Lutrija continued their cooperation in the development of sports at local level.
Cooperation under title “COC and HL for
sport schools” includes joint preparation and
IMAGE
COC
and
HL for
sport
schools
IMAGE
ECOETHNO
break
open
tickets
Festival of chamber music „Julian Rachlin &
Friends“, Youth Sports Games, Varaždin Baroque
Evenings, Zagreb PBZ Zagreb Indoors and many
other events, are only some of projects supported by
the donations of Hrvatska Lutrija with HRK
62,434,121.00 in 2010.
By the Ordinance on the Criteria for Determining
Beneficiaries and the Manner of Distribution of a Part
of the Income from Games of Chance from 2010 the
Government of the Republic of Croatia determined the
criteria for funding the programmes of organisations
that deal with activities stipulated by Article 8 of the Act
on Organisation of Games of Chance.
promotion of games of chance, instant lottery
“Jurilica”. A part of revenues earned by sales of
instant lottery tickets was directed to county
sport organisations. Nine programmes
from 9 counties were selected and HRK
40,000.00 was granted to each project.
IMAGE
Julian
Rachlin
and
Friends
Dubrovnik Summer Festival is, a representative international music, theatre and
dancing festival and the goal of this event is to
spread cultural activities and art and promote
Croatian cultural heritage. Hrvatska Lutrija
sponsored this role model of cultural events
with social significance.
39
HL 2010
For this purpose, a total amount
of HRK 116,201,570.00 was paid
to the state budget in 2010, and
50% or HRK 58,100,785.00 was
allocated for funding of programmes of the above mentioned
organisations.
IMAGE
Dubrovnik
Summer
Festival
The funds of Hrvatska Lutrija, being the
income of the state budget, and as such partly
allocated for the funding of programmes of the
above-mentioned organisations pursuant to
Art. 8 of the Act, include the following:
••
••
••
••
Annual and monthly casino gaming fee
Annual and monthly betting fee
••
Realized profit of Hrvatska Lutrija.
Annual and monthly slot-machine gaming
fee
Users of funds (Art. 8 of the Act) Allocation of a part of income
%
Amount
Organisations promoting sports development
33,31%
19.353.372
Organisations contributing to the prevention of drug addictions and
other addictions
7,60%
4.415.660
Organisations engaged in social and humanitarian activities
6,80%
3.950.853
Organisations engaged in problems and needs of disabled persons
27,60%
16.035.817
Organisations engaged in technical education
3,97%
2.306.601
Cultural organisations
4,60%
2.672.636
Organisations engaged in extra-institutional education and upbringing
of children and young people
2,02%
1.173.636
Organisations contributing to civil society development
14,10%
8.192.211
100,00%
58.100.785,14
TOTAL
Monthly fee from conducting lottery games
of chance
40
HL 2010
Environmental
responsibility
The main determinants of environmental policy of Hrvatska Lutrija, which have
become an integral part of our everyday
business, include pollution prevention,
avoidance and minimization of waste generation and compliance with applicable
laws and regulations.
Waste prevention, reduction of its development to a minimum, separate collection and
proper disposal of waste are daily activities in
the field of waste management of the company.
Waste in Hrvatska Lutrija is intrinsic to its operations.
Waste disposal includes: waste management,
temporary storage of waste until its delivery to
legal entities authorized for collection and further waste management, establishing and keeping proper records and documentation and in-
ternal control over the implementation of the measures
established by the Waste Management Plan.
In order to carry out separated waste collection in the
last year we adopted a system of collecting used toner
cartridges, electronic and electrical equipment, supplies
and paper.
Throughout Croatia there are boxes next to our points
of sale to collect paper and this will be followed by placing containers for used batteries.
We introduced measures of more rational and efficient
energy consumption, fuel consumption for vehicles was
reduced, as well the use of paper for printing and copying, we increased the use of recycled paper for printing
promotional materials.
The plan is to introduce a waste management process,
reduce the total volume of waste produced and to prepare instructions and implement environmental requirements in the procurement process. We are introducing
the communication of achievements and points of interest in the field of environmental protection on Intranet,
in order to raise the awareness of environmental issues
in all employees.
Hrvatska Lutrija has shared the concern of
the world community for the fate of our planet
threatened by human activities. The contribution of Hrvatska Lutrija to sustainable development is its systematic environmental protection
management.
41
H
rvatska Lutrija and
its Stakeholders
Our stakeholders are: players,
employees, social and business
partners, the Government of the
Republic of Croatia and its relevant ministries, suppliers, expert
associates- scientists dealing with
games of chance, as well as specialists and treatment providers in the
areas of problem gambling users of
the funds collected from gambling,
recipients of sponsorships and donations, environmental protection
organizations, the media and the
general public..
Hrvatska Lutrija has established interactive,
formal and informal communication with all of
them, which enables asking questions, expressing opinions and discussing issues relevant to
them. However, our relationship with stakeholders is attested in the best way by themselves:
…our players
„D
ear Sirs,
sports…
I have played games of chance
of HL for 56 years. I skipped only 5 draws (once
due to the death of a salesman, second time
because of bad weather and therefore I was not
able to reach the point of sale (which was over 5
km away), twice I miscalculated time because of
a public holiday, and I think once because of a
burnt train car departing from Slavonia!).
The prizes were, neither numerous nor large: LOTTO-4
“sixes” ... “fives and fours” I cannot recall (there were so
many of them). Sports games pari-mutuel - once-twelve
hits, and once nine hits. But I have been very close to a
huge prize several times.
I have never “gambled”; I was playing to have
fun and of course, to win. If I didn’t get anything
I believed (if I was right) that a portion of my
payments would benefit charitable organizations,
As I play Lotto on Wednesdays and Saturdays (“six and
seven”), I do not know what combination to play anymore
and only today (although I am often on the Internet and
At first I played only sports games pari-mutuel and for
the last 20-25 years I have played only LOTTO.
HL 2010
42
HL 2010
In the past, some 30 years ago, I used to write
a short program for “Commodore” (Computer
C-64) to generate random numbers, using the
so-called .RND function. Now HL will help me
to achieve better results! I’m joking now , but
it is not impossible; in my distraction which is
amusing me and which is helping the society
as a whole to fund the social needs of different
character.
Best regards and I wish you well, your passionate player from Orahovica!
Pavlović, re”Milantired
professor
„J
ust to give you a little praise - the
website is excellent. Playing is simple
and intuitive, the only thing is that you could
send confirmation slips/games played to e-mail!
“Dejan
Perikić, player
…our employees
„T
Thank you for offering me a new
employment contract for an indefinite period for the position of a cleaning maid
and for all you have done for me and my family
so far by providing us your assistance and support in the toughest moments of our lives. Thank
you and your colleagues, and all the nice people
of Hrvatska Lutrija, my second family. My wish
is to fulfil your trust with my dedicated and committed work on the new job. Appreciating your
valuable time, this letter is short but it conveys
all my feelings to you and gratitude that I feel.
Please accept my expressions of respect and cordial
greetings.“
”Jadranka Lučić, Hrvatska Lutrija
„I
kindly thank you for the human and financial
support by which you enabled me to get the
best treatment. I especially want to thank Ms. Nora Cecić
for her friendly support and involvement in the organization of help. I also thank many colleagues in Hrvatska
Lutrija for their support. “
”Adela Modrić, Hrvatska Lutrija
…users of funds allocated to
good causes
„S
ince 2005, I have been in a home for children
and young adults in Lipik. I currently attend
high school and I am happy to hear that this year we will
once again get a gift for Christmas holidays from Hrvatska Lutrija, namely the amount of €150.00, which I can
spend on what makes me happiest. As I am a high school
student it is normal that I have many wishes, but the fact
that I will be able to buy what I want is my great joy.
Each year on the Institution Day the director takes us
to Zagreb for a day trip and it’s a true occasion for us to
buy what we want. In addition to our pocket money that
we saved and your HRK 150.00 we manage to buy, for
example, an MP3, sports t-shirts or new sneakers, while
the youngest prefer toys.
So I want to thank you sincerely in my own name and
on behalf of other 30 inmates of our institution.
We do hope to receive the same happy news next year !“
”I. P., a ward at the Home for children
HL’s website) I found a section where I can click
to select random numbers for Lotto 6 / 45 and
7 / 39. And that was the reason for contacting
you and thanking you for this novelty you introduced (I do not know when, but I have noticed it
today for the first time).
43
HL 2010
„T
his Christmas, our children send
Christmas greetings of gratitude to
our most deserving associates - “ angels-“ (as we
affectionately call them).
Since Hrvatska Lutrija is at the very top of our
list of deserving “angels”, by this greeting card we
want to thank you for your efforts and love you
dedicate to our children.“
Igor Kajtaz, Zagreb, Children´s
”Home
Nova budućnost, Zagreb
(a subsidiary in Kastel Luksic)
„H
rvatska Lutrija is one of the
pillars of financing Croatian
sports, and nearly 60 percent of the COC budget
funds originate from gambling. Thus, Hrvatska
Lutrija as a socially responsible company also
supports the communities that need to develop
basic sports infrastructure as well as Croatian
sports from the youngest athletes to top sports.“
the Croatian
”Zlatko Mateša,
Olympic Committee
„C
ooperation with Hrvatska Lutrija
began at last year’s fair, Eco-Ethno Croatia when we preserved an indigenous
breed and bought several horses of Međimurje
breed owing to the support of Hrvatska Lutrija. This year, Hrvatska Lutrija issued a special
series of lottery tickets under the name Eco-ethno, providing generous financial support to the
development of rural tourism in Croatia, but
also increasing the awareness of the importance
of preserving cultural heritage. It is my honour
and great pleasure to have the opportunity to
cooperate with Hrvatska Lutrija and we hereby
appreciate your support very much.“
”Dijana Katica, Croatian Farmer
…our professional associates
in the prevention and treatment of problem gambling
„W
ith great pleasure we emphasize the initiative of Hrvatska Lutrija to encourage
the creation of specific prevention programs that would
be implemented in school environment, and which would be aimed at delaying the age of starting gambling
and betting activities, making proper decisions about
such activities and compliance with legislation. With the
encouragement and support of Hrvatska Lutrija we plan
to start designing and implementing prevention programs
in the new one-year project whose duration is envisaged
from September 2011 to September 2012.
The readiness of Hrvatska Lutrija to cooperate with
the scientific community to study this risky behaviour
and to encourage and support measures to reduce future
risks shows a clear intention for correct position on the
Croatian market. We can frankly conclude that we have
established a transparent dialogue with mutual initiative
and proactive approach to achieve all the project goals,
all in order to develop responsible gaming policy. We are
confident that our positive cooperation will continue and
that the results of our study of adolescent gambling will
set the platform for future activities.“
Doc. D. Sc. Neven Ricijaš, Faculty of
”
Education and Rehabilitation, Zagreb
„S
oon after the establishment of KLO (Gambling Addicts Club) and the establishment of
continuous work, we have established contacts with the
employees of Hrvatska Lutrija. The result of these meetings was an agreement we reached with the team of Hrvatska Lutrija on a series of six lectures for the staff of Hrvatska Lutrija on problems associated with pathological
gambling, its prevention and rehabilitation. Taking into
and young adults from Lipik
44
HL 2010
In the last two years we have been supported
financially by Hrvatska Lutrija to implement
the work programs of the KLOK rehabilitation
groups. We are now engaged in development of
a virtual treatment of pathological gamblers
through Internet network. With the help of the
HL Office we established contacts with the Ministry of Finance, the Office for games of chance,
which resulted in a meeting and decision on the
future support to KLOK by the Ministry.
We hope that our future collaboration will enable us to carry out the necessary work to determine the prevalence of problems associated with
gambling in Croatia, which is required for the
systematic planning of therapeutic and rehabilitative interventions. In order to achieve this
goal, we are open to collaboration with other
NGOs.
Together with Doc. D.Sc. Neven Ricijaš from
the Faculty of Education and Rehabilitation,
we have prepared a project for determining
the prevalence and prevention at a secondary
school in Karlovac. We hope to receive more
efficient financial support from ministries and
gambling industry in the future.“
D. Sc. Zoran Zoričić,
”Doc.Klinička
bolnica Sestara Milosrdnica
...professionals
„F
or the third year in a row, Hrvatska Lutrija, confirmed its status
as the Employer Partner with very high quality processes and practices across all segments observed and with
visible investments in the development and achievement
of better results every year. Hrvatska Lutrija is not only
at the top with some of the best Croatian companies, due
to its quality of employee management but also due to
some projects, such as the project of introducing corporate
social responsibility at all levels of operation., It raises the
quality of employee management, as well as of business
management, even higher. It should be noted that Hrvatska Lutrija is one of the few organizations owned by the
Republic of Croatia who has been awarded this Certificate making this award even more valuable.“
”Aleksandar Zemunić, Selectio d.o.o.
...social partners
“D
uring the activities of the Croatian Republican Union of Workers significant changes in employees’ rights have occurred. A social dialogue
was established that resulted in the signing of new collective agreements, wherein we have tried to make each new
agreement better than the previous one. At the level of the
Management - trade unions, social dialogue is still functioning well and there is no avoidance of talking about
the problems at Hrvatska Lutrija. In addition to the Workers’ Council existing since 1996 and regular meetings of
employees and of the Occupational Safety Commission,
Hrvatska Lutrija held a series of(lectures for its workers
on socially acceptable organizing of games. We hope that
such good social dialogue will continue and that we will
keep the high standing of this company by joint efforts of
all social partners.”
Milovan Večerina, Republički
”
sindikat radnika Hrvatske (Croatian
Republican Union of Workers)
„F
or many years Hrvatska Lutrija and Sindikat trgovine Hrvatske have been fostering
a partnership through daily cooperation and collective
bargaining. Joint activities aimed at improving the quali-
account the interests of Hrvatska Lutrija in the
organization of games, but also a responsible
attitude towards their organization, our lectures were designed in the direction of prevention
of problems and early diagnosis of pathological
gamblers.
45
HL 2010
Percan, Commer”cialBojana
Trade Union of Croatia
…our regulating
authority
“W
e have been continuously communicating with Hrvatska
Lutrija regarding the improvement of the gaming market in the Republic of Croatia. Thanks
to its active participation in the work of international lottery organizations, it has information
and knowledge about developments in the European and world markets of games of chance,
both relating to product development and sales
channels, as well as relating to regulations, and
makes the available to all interested parties if
requested. Its approach is proactive, especially dedicated
to raising the awareness of the need for socially responsible approach to organizing, conducting and consuming
games. It has been constantly working on establishing and
maintaining contacts and interconnecting stakeholders
in order to promote responsible gaming which implies
minimizing possible harmful effects to the society, while
raising the funds needed to finance good causes.“
”Anđela Toth Sesar, Ministry of Finance
…media representatives
„Thanks for detailed information. You’re really fast !“
”Ilko Ćimić, www.indeks.hr
„I
have been cooperating with Hrvatska Lutrija
almost after every jackpot drawn. Also, in case
of very high jackpots, we are writing stories for days about
earlier prizes, most frequently about the numbers drawn,
“lucky” points of sale ... Several people are available for
any questions I at all times. If Hrvatska Lutrija’s staff
needs time to collect the data I need, it will not take more
than a few hours. In other companies, there is often only
one person in charge of public relations and sometimes it
takes weeks to get the answers or we never get them. Therefore, Hrvatska Lutrija is commendable. I always get
exactly what I need and very quickly.“
”Marcela Bratović, 24sata
ty of working conditions and employee satisfaction simultaneously enhance the stability and
development of the company. Through successful
maintenance of a balance between their interests, the social partners provide long-term corporate social responsibility of Hrvatska Lutrija.“
46
HL 2010
Financial
indicators
Financial Results
Legislation
••The new Games of Chance Act came into effect on 1 January 2010 establishing the system, types and terms of organising
games of chance, is important for the financial statements that follow. Namely, the new Act introduced a fee for organizing lottery games and taxes on prizes from games of chance.
••Tax treatment of gaming also changed, i.e. VAT on lottery games was abolished pursuant to the Act on Amendments to
the Value Added Tax Act. Legal amendments have led to changes in the allocation of the funds from games of chances
and presentation of revenue and expenses for 2010.
Realized
in 2009.
Str. %
Plan
2010.
Str. %
Realized
in 2010.
Str. u %
% changes
´10./´09. ´10./´10
plan
1. TOTAL REVENUE
500.385
100,00
505.156
100,00
488.413
100,00
-2,39
-3,31
A. OPERATING REVENUE
494.862
98,90
500.002
98,98
484.089
99,11
-2,18
-3,18
Sales revenue
483.660
96,66
487.246
96,45
470.408
96,31
-2,74
-3,46
473.885
94,70
478.401
94,70
461.565
94,50
-2,60
-3,52
2. Revenue from sales of goods
6.181
1,24
5.688
1,13
5.538
1,13
-10,39
-2,63
3. Revenue from rent
3.594
0,72
3.157
0,63
3.306
0,68
-8,03
4,70
Other operating revenue
11.202
2,24
12.757
2,53
13.680
2,80
22,13
7,24
B. FINANCIAL REVENUE
5.523
1,10
5.154
1,02
4.324
0,89
-21,70
-16,10
2. EXPENSES
455.279
90,99
502.090
99,39
482.184
98,72
5,91
-3,96
3. EBIT
45.106
9,01
3.066
0,61
6.229
1,28
-86,19
103,17
9.620
1,92
613
0,12
1.686
0,35
-82,47
174,95
35.486
7,09
2.453
0,49
4.543
0,93
-87,20
85,23
Description
1. Revenue from games
4. Income tax
5. NET INCOME
Financial indicators
Total revenues, expenses and profit (in 000 kn)
47
HL 2010
TOTAL REVENUE
••Realised total revenue of Hrvatska Lutrija d.o.o. for 2010 amounts to HRK 488.413.111
which represents 97.61% of revenue realised in 2009.
BREAK-DOWN
OF REVENUES
FOR 2010.
Income
of from
rent 0,68%
Revenue
rent 0.68%
Financial
0,89%
Financialincome
revenue
0.89%
Sales
1,13%
Salesof
ofgood
goods
1.13%
Otheroper.
operating
Other
incomerevenue
2,80% 2.80%
Casinos5,84%
5.84%
Casinos
Slotmachine
machine
games
8.78%
Slot
games
8,78%
Betting
Betting13,64%
13.64%
Lotterygames
games
66.25%
Lottery
66,25%
2010.
Plan
2010.
Revenue from games
473,885
478,401
461,565
-2.60
-3.52
- Revenue from lottery games
310,861
340,570
323,556
4.08
-5.00
- Revenue from casino games
43,395
27,671
28,522
-34.27
3.08
- Revenue from slot machine games
59,950
44,356
42,872
-28.49
-3.34
- Revenue from betting
59,679
65,804
66,614
11.62
1.23
Revenue from sales of goods
6,181
5,688
5,538
-10.39
-2.63
Revenue from rents
3,594
3,157
3,306
-8.03
8.47
Other operating revenue
11,202
12,756
13,680
22.13
6.33
Financial revenue
5,523
5,154
4,324
-21.70
-16.10
- Interests
5,357
5,098
4,132
-22.87
-18.95
166
47
144
-12.76
207.15
-
9
48
-
424.07
500,385
505,156
488,413
-2.39
-3.31
- Foreign exchange gains
- Dividends
TOTAL REVENUE
% change
´10./´09. ´10./´10 plan
2009.
Description
48
HL 2010
TOTAL EXPENSES
••Total realised expenses of Hrvatska Lutrija d.o.o. for 2010. amount to HRK 482.183.685
which is 5,91 % higher compared to expenses realised in 2009.
BREAK-DOWN
OF EXPENSES
FOR 2010.
Financ. and other expense 0,74%
Depreciation 2,91%
Non-material costs 7,03%
Fees of game conduct. 23,20%
Gross salaries 30,45%
Material costs 35,66%
2010.
Plan
2010.
Fees of games conducting
52,471
115,412
111,870
113.20
-3.07
Material costs
171,083
173,308
171,968
0.52
-0.77
Depreciation
28,276
26,704
14,030
-50.38
-47.46
Non-material costs
34,364
33,771
33,920
-1.29
0.44
Gross salaries
162,044
147,728
146,811
-9.40
-0.62
7,041
5,167
3,585
-49.08
-30.63
455,279
502,090
482,184
5.91
-3.96
Financial and other expense
TOTAL EXPENSES
% change
´10./´09. ´10./´10 plan
2009.
Description
49
HL 2010
Significant accounting policies
••Accounting policies that are significant for understanding of the basic financial statements are shown
below.
Fixed tangible and intangible assets
••Fixed tangible assets include land, buildings, equipment, office inventory, furniture, transport means,
apartments and other tangible assets. Long term intangible assets comprise costs of formation for rights
to use telecommunications lines and rights to use software.
••Fixed tangible and intangible assets are stated at cost. Pursuant to IAS, 16, point 73, cost value consists of
the invoiced value of acquired assets plus any costs incurred up to putting them into use.
••Items and equipment are recorded as tangible non-current operating assets when their useful life at the
time of purchase is longer than one year, and the individual cost value is greater than HRK 2,000 and
HRK 3,500 as of 1 July 2010, respectively.
••Expenses for modernisation, redoing and rebuilding are considered to be integral part of gross book
value of tangible assets if such additional investment increases capacity, extend service life or enables
considerable improvement in quality.
Inventories
••Inventories include consumables and office materials, spare parts, small inventory and merchandise
goods, and they are measured at purchase cost or net value that can be realised, whichever is lower.
Inventory cost is determined by application of FIFO method (first in = first out). Complete (100 %) writeoff method is applied to expenditure of small inventories.
Receivables
••Trade receivables include all receivables for goods sold and services performed. Corrections for all trade
receivables, estimated to be risky due to uncertain collection, are chargeable to profit and loss statement
as at the end of accounting period.
••Depreciation of fixed tangible and intangible assets is calculated by application of linear method for
individual statement. Purchase or revaluated value of the assets is depreciated at equal annual amounts
during the anticipate service life which is not shorter that service life stipulated by the Income Tax Act
Depreciation
50
HL 2010
(Official Gazette, No.177/04, 90/05., 57/06.,146/08.,80/10.) and IAS 16, point 61.
••In the period January – December 2010 the write-off rates are reduced by 50 % pursuant to IAS 8, point
14b and drop in business activities.
Income
••Operating income consists of sales of services and goods, leasing of business premises and devices. Pursuant to regulations, operating and other income are stated at invoice value. Interests incurred from
receivables through business relationships are stated as financial income in the income statement.
Expenses
••Operating expenses consists of operating costs included in realised services and goods sold. Interests and
exchange difference incurred from liabilities, calculated to the date of balance sheet, are stated as financial expenses in the income statement.
Conversion of foreign means of payment and accounting treatment of exchange difference
••All assets and liabilities in foreign currencies are converted at the mean exchange rate of Croatian National Bank prevailing on the date of balance sheet.
••Exchange gains or losses, occurred due to conversion of all receivables and liabilities expressed in foreign
currency to kuna equivalent, are stated as financial expense or financial income in the income statement.
Provisions for costs and risks
••Pursuant to regulations, provisions for potential operating risks will be provided from time to time.
51
HL 2010
BALANCE SHEET 31.12.2010. (In HRK, w/o lipa)
Item
Name
AMOUNT
Past year
(net)
AMOUNT
Current year
(net)
ASSETS
A.
RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID
B.
FIXED ASSETS (B.I.+B.II.+B.III.+B.IV. +B.V.)
84.995.775
90.236.470
B.I.
Intangible assets (1 - 6)
10.407.344
13.619.177
Investment expenses
2.
Concessions, patents, licences, trade and service
marks, software and other rights
3.
Goodwill
4.
Prepayments for procurement of intangible assets
5.
Intangible assets in preparation
6.
Other intangible assets
3.408.018
10.407.344
10.211.159
Tangible assets (1 - 9)
72.532.951
74.634.288
1.
Land
6.037.002
15.336.000
2.
Buildings
29.952.378
27.256.879
3.
Plants and equipment
21.936.577
21.166.245
4.
Tools, plant equipment and transportation assets
8.926.406
8.210.247
5.
Biological assets
6.
Prepayments for tangible assets
332.867
422.969
7.
Tangible assets under construction
3.891.320
1.051.622
8.
Other tangible assets
1.456.401
1.190.326
9.
Investments in real estate
816.826
826.789
816.826
826.789
1.238.654
1.156.216
1.238.654
1.156.216
B.II.
B.III.
Long-term financial assets (1 to 8)
1.
Interests (shares) in associated enterprises
2.
Loans granted to associated enterprises
3.
Participating interests (shares)
4.
Loans granted to enterprises with participating
interests
5.
Investments in securities
6.
Loans granted, deposits and other
7.
Other long-term financial assets
8.
Investments accounted for using the equity method
B.IV.
Receivables (1 - 3)
1.
Receivables from associated enterprises
2.
Receivables from sales on instalments
3.
Other receivables
B.V.
DEFERRED TAX ASSETS
1.
52
HL 2010
Item
Name
AMOUNT
Past year
(net)
AMOUNT
Current year
(net)
135.733.189
103.622.290
C.
CURRENT ASSETS (C.I.+C.II.+C.III.+C.IV.)
C.I.
Inventories (1 - 7)
5.796.070
5.328.211
1.
Raw materials and materials
1.614.418
1.248.583
2.
Work in progress
3.
Finished products
4.
Merchandise
4.064.148
3.998.866
5.
Prepaiments for inventories
117.504
80.762
6.
Fixed assets intended for sale
7.
Biological assets
8.559.020
11.420.867
4.602.934
739.472
45.004
16.545
C.II.
Receivables (1 - 6)
1.
Receivables from associated enterprises
2.
Trade receivables
3.
Receivables from participating enterprises
4.
Receivables from employees and enterprise’s
members
5.
Receivables from government and other institutions
1.091.063
7.927.818
6.
Other Receivables
2.820.019
2.737.032
Short-term financial assets (1 do 7)
2.259.473
2.117.338
2.259.473
2.117.338
119.118.626
84.755.874
8.338.812
13.615.177
C.III.
1.
Interests (shares) in associated enterprises
2.
Loans granted to associated enterprises
3.
Participating interests (shares)
4.
Loans granted to enterprises with participating
interests
5.
Investments in securities
6.
Loans granted, deposits and other
7.
Other financial assets
C.IV.
CASH AT BANK AND IN HAND
D.
PREPAYMENTS AND ACCRUED INCOME
E.
TOTAL ASSETS (A+B+C+D)
229.067.776
207.473.937
F.
OFF BALANCE SHEET RECORDS
164.415.646
132.547.772
ASSETS
53
HL 2010
AMOUNT
Past year
(net)
AMOUNT
Current year
(net)
CAPITAL AND RESERVES (A.I.-A.VI.)
(consolid.A.I.-A.VII.)
110.265.329
84.322.889
A.I.
NOMINAL CAPITAL
50.000.000
50.000.000
A.II.
CAPITAL RESERVES
A.III.
RESERVES FROM PROFIT (1+2+4+5)-3
24.723.347
29.723.347
24.723.347
29.723.347
Item
Name
LIABILITIES
1.
Legal reserves
2.
Reserves for own (treasury) shares
3.
Own (treasury) shares and interests (debit item)
4.
Statutory reserves
5.
Other reserves
A.IV.
REVALUATION RESERVES
A.V.
RETAINED EARNINGS
56.125
56.125
1.
Retained earning
56.125
56.125
2.
Loss carried forward
PROFIT AND LOSS OF THE YEAR
35.485.857
4.543.417
1.
Profit for the current year
35.485.857
4.543.417
2.
Loss for the current year
-
14.765.316
A.VI.
A.VII.
B.
MINORITY INTERESTS (See Enclosure)
PROVISIONS (1 to 3)
1.
Provisions for pensions, severances and similar
liabilities
2.
Provisions for tax liabilities
3.
Other provisions
C.
LONG-TERM LIABILITIES (1 to 9)
1.
Liabilities to associated enterprises
2.
Liabilities for loans, deposits and similar
3.
Liabilities to banks and other financial institutions
4.
Liabilities for prepayments (long term)
5.
Trade payables
6.
Securities payable
7.
Liabilities to enterprises with participating interests
8.
Other long term liabilities
14.765.316
8.632.216
8.582.596
8.632.216
8.582.596
A.
54
HL 2010
Item
Name
AMOUNT
Past year
(net)
AMOUNT
Current year
(net)
110.129.163
99.754.453
54.184
55.814
D.
CURRENT LIABILITIES (1 to 12)
1.
Liabilities to associated enterprises
2.
Liabilities for loans, deposits and similar
3.
Liabilities to banks and other financial institutions
4.
Liabilities for prepayments (long term)
1.067.251
2.188.217
5.
Trade payables
18.872.438
14.837.309
6.
Securities payable
7.
Liabilities to enterprises with participating interests
8.
Liabilities to employees
8.226.302
8.038.900
9.
Taxes, contributions and similar payments
23.948.022
15.030.184
10.
Liabilities per participation in profit
7.183
7.183
11.
Liabilities for fixed assets intended for sale
12.
Other current liabilities
57.953.784
59.596.846
41.068
48.682
E.
ACCRUALS AND DEFERRED INCOME
F.
TOTAL LIABILITIES (A+B+C+D+E)
229.067.776
207.473.937
G.
OFF BALANCE SHEET RECORDS I
164.415.646
132.547.772
LIABILITIES
55
HL 2010
INCOME STATEMENT for 2010. (In HRK, w/o lipa)
AMOUNT
Past year
(net)
AMOUNT
Current year
(net)
OPERATING INCOME (1+2)
494.861.904
484.088.783
1.
Sales revenues
483.660.216
470.408.302
2.
Other operating incomei
11.201.688
13.680.481
455.050.483
482.054.146
Material costs (a+b+c)
171.083.273
171.968.192
a) Costs of raw materials and materials
17.191.204
17.850.599
b) Costs of goods sold
8.445.540
5.228.154
c) Other external costs
145.446.529
148.889.438
Stuff costs (a+b+c)
162.043.543
146.810.514
a) Net salaries and wages
94.401.080
87.067.195
b) Costs of taxes and contributions assessed on
salaries and wages
43.895.026
38.208.129
c) Contributions on salaries
23.747.437
21.535.189
4
Depreciation
28.275.727
14.030.366
5
Other expenses
86.835.857
145.789.906
6
Value adjustment (a+b)
297.751
12.572
297.751
12.572
Item
I.
II.
Name
OPERATING EXPENSES (1+2 do 8 ili 2 do 8-1)
1
Depreciation of inventories of work in progress and
finished products
Increase in inventories of work in progress and
finished products
2
3
a) Value adjustment of current assets (except financial
assets)
7
Provisions
8
Other operating expenses
6.514.332
3.442.597
FINANCIAL INCOME (1 do 5)
5.522.718
4.324.327
5.522.718
4.324.327
III.
1.
Interests, exchange differences, dividends and similar
revenues from relation with associated enterprises
2.
Interests, exchange differences, dividends and similar
revenues from relation with not-related enterprises
and other entities
3.
Part of revenue from affiliated companies and
participating interests
4.
Unrealised gains (income) on financial assets
5.
Other financial revenue
a)Value adjustment of fixed assets (except financial
assets)
56
HL 2010
Item
IV.
Name
FINANCIAL EXPENSES (1 - 4)
1.
Interests, exchange differences, dividends and other
expenses from relation with associated enterprises
2.
Interests, exchange differences, dividends and other
expenses from relation with not-related enterprises
and other entities
3.
Unrealised losses (expenses) on financial assets
4.
Other financial expenses
AMOUNT
Past year
(net)
AMOUNT
Current year
(net)
228.486
129.539
228.486
129.539
V.
PARTICIPATION IN PROFIT FROM AFFILIATED
COMPANIES
VI.
PARTICIPATION IN LOSS FROM AFFILIATED
COMPANIES
VII.
EXTRAORDINARY – OTHER REVENUE
VIII.
EXTRAORDINARY – OTHER EXPENSES I
IX.
TOTAL INCOME (I.+III.+V)
500.384.622
488.413.110
X.
TOTAL EXPENSES (II.+IV.+VI.)
455.278.969
482.183.685
XI.
PROFIT OR LOSS BEFORE TAX
45.105.653
6.229.425
1
Profit before tax
45.105.653
6.229.425
2
Loss before tax
9.619.797
1.686.009
XII.
INCOME TAX
XIII.
PROFIT OR LOSS FOR THE PERIOD
35.485.856
4.543.417
1
Profit for the period
35.485.856
4.543.417
2
Loss for the period
INCOME STATEMENT for 2010. (In HRK, w/o lipa)
57
HL 2010
CASH FLOW STATEMENT for 2010. (In HRK, w/o lipa)
AMOUNT
Past year
(net)
AMOUNT
Current year
(net)
1. Profit before tax
45.105.653
6.272.156
2. Depreciation
28.275.727
14.030.366
Name
CASH FLOW FROM OPERATING ACTIVITIES
3. Increase in current liabilities
4. Decrease of current receivables
6.679.617
5. Inventory decrease
3.509.609
467.859
83.570.606
20.770.381
6. Other increase in cash flow
I. Total increase in cash flow from operating activities
1. Decrease of current liabilities
10.374.710
2. Increase of current receivables
2.861.847
3. Inventory increase
4. Other decrease in cash flow
403.066
16.660.435
403.066
29.896.992
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES
83.167.540
0
A2) NET DECREASE IN CASH FLOW FROM OPERATING ACTIVITIES
0
9.126.611
1. Cash inflows from sales of fixed tangible and intangible assets
921.629
140.348
2. Cash inflows from sales of equity and debt instruments
93.532
82.438
2.058.928
42.070
III. Total cash inflows from investment activities
3.074.089
264.856
1. Cash outflows for purchase of fixed tangible and intangible
assets
14.431.752
15.015.140
14.431.752
15.015.140
B1) NET INCREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES
0
0
B2) NET DECREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES
11.357.663
14.750.284
II. Total decrease in cash flow from operating activities i
CASH FLOW FROM INVESTMENT ACTIVITIES
3. Interest receipts
4. Dividend receipts
5. Other cash inflows from investment activities
2. Cash outflows for acquisition of equity and debt instruments
IV. Total cash outflows from investment activities
3. Other cash outflows from investment activities
58
HL 2010
CASH FLOW STATEMENT for 2010. (In HRK, w/o lipa)
AMOUNT
Past year
(net)
AMOUNT
Current year
(net)
0
0
14.963.825
10.485.857
14.963.825
10.485.857
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES
0
0
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES
14.963.825
10.485.857
Total increase in cash flow
56.846.052
0
Total decrease in cash flow
0
34.362.752
Cash and cash equivalents at the beginning of the period
62.272.574
119.118.626
Increase in cash and cash equivalents
56.846.052
Name
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflows from issuance of equity and debt financial
instruments
2. Cash inflows from loan principals, debenture, borrowings and
similar
3. Other inflows from financial activities
V. Total cash inflows from financial activities
1. Cash outflows for repayment he loan principals and bonds
2. Cash outflows for dividend payment
3. Cash outflows for financial leasing
4. Cash outflows for purchase of own shares
5. Cash outflows from financial activities
VI. Total cash outflows from financial activities (031 do 035)
Decrease in cash and cash equivalents
34.362.752
Cash and cash equivalents at the end of the period
119.118.626
84.755.874
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY for 2010. (In HRK, w/o lipa)
Balance at the beginning of the period
Reserves
from
profit
Retained
earning
Result of
current
period
Total
50,000,000
24,723,347
56,125
35,485,857
110,265,329
Increase in reserves – donations and sponsorships
5,000,000
(5,000,000)
0
Increase in reserves – for coverage of litigations lost
20,000,000
(20,000,000)
0
Reduction in reserves for litigation provisions
(20,000,000)
(20,000,000)
Profit allocation 2009
0
Payment of participation in profit – State budget
(10,485,857)
Profit for 2010
Balance at the end of the period
50,000,000
29,723,347
56,125
(10,485,857)
4,543,417
4,543,417
4,543,417
84,322,889
Description
Subscribed
capital
59
HL 2010
Business efficiency indicators
Description
2009.
2010.
Current ratio
1,23
1,04
Financial stability ratio
0,71
0,84
Debt ratio
0,52
0,59
Turnover ratip of total assets
2,18
2,35
7,09%
0,93%
1,10
1,01
Return on equity - ROE
32,18%
5,39%
Return in total assets - ROA
15,49%
2,19%
Net working capital (in kn 000)
25.604
17,483
Productivity (in kn 000)
363,12
376,86
Profitability
Cost effectiveness
••Current liquidity ratio shows the coverage of current liabilities by current assets. Current liquidity ratio
is reduced compared to 2009 (from 1.23 to 1.04), because the current assets decreased at a faster rate (by
23.66 %) than current liabilities (9.42 %).
••Financial stability ratio shows that current assets are partially financed from long-term financing sources
(preferably < 1.0). This ratio rose from 0.7 in 2009 to 0.84 in 2010 showing that it is still at a satisfying
level.
••Debt ratio measures indebtedness of a Company, i.e. it shows how much assets are financed by own
funds (capital). In relation to 2010, debt ratio increased from 0.52 to 0.59.
••Turnover ratio measures efficiency of use of own resources. Turnover ratio of total assets indicates efficiency of equity use in making earnings. In 2010 it amounted to 2.35, while in 2009 it was 2.18.
••Profitability shows the level of operating performance, and the level of realised net earnings in relation to
the realised income. Hrvatska Lutrija d.o.o. achieved the profitability rate of 0.93 % in 2010.
••Cost effectiveness indicates the level of economic effects of operation and it is determined by the ratio
between income and expenses, i.e. how many income units are realised through an expense unit. In relation to 2009 (1.10) for the 2010 efficiency is slightly lower, i.e. 1.01.
••Return on equity (ROE) indicates earning per each kuna of invested capital. In 2010 rentability decreased
to 5,39%.
••Return on total assets (ROA) – An indicator of how profitable a company is relative to its total assets.
••Net working capital – Existence of working capital means that a part of current assets is financed from
long-term sources which is required to maintain liquidity. In 2010 it was HRK 17.5 mil.
••Productivity – shows the amount of total income per employee (per hours of work). In relation to 2009
productivity rose by 3.78%.
ROA gives an idea as to how efficient management is at using its assets to generate earnings from one assets unit. In 2010 it was 2.19%.
60
HL 2010
Independent Auditor’s
Report
Independent auditor’s report
To the members of Hrvatska lutrija d.o.o.
We have audited the accompanying financial statements of Hrvatska lutrija, limited liability company, Zagreb, which comprise the balance sheet as at 31 December 2010, income statement, cash flow statement
and statements of changes in equity and a summary of significant accounting policies and their explanatory
notes (enclosed on pages 5 to 23).
Management’s responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of 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 financial statements based on our audit.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair
presentation of the 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 entities’ internal
control. An audit also includes evaluating the appropriateness of accounting policies used in the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Independent Auditor’s Report
We conducted our audit in accordance with International Standards on Auditing. 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 misstatements.
61
HL 2010
Opinion
In our opinion the financial statements present fairly, in all material respects, the financial position of the
company Hrvatska lutrija as at 31 December 2010, and their financial performance for the year of 2010 in
accordance with International Financial Reporting Standards.
Emphasis of matter
We draw attention to the fact that in 2010 the Company made correction of the error of the previous period.
By this correction, reservations for potential liabilities for the litigations initiated at the court in the amount
of HRK 20,000.00 are shown. These reservations are charged to other reservations.
We draw attention to Note 1 in the Financial statements that describes the issue of legal status of the real
property shown in the balance sheet as possession of the Company.
We also draw attention to Note 11 in the Financial statements that describe presentation of long-term liabilities to Adria Beteiligungs GmbH, Vienna, Austria because of which a litigation against the Company was
initiated in 1994 wherein the plaintiff requires payment of lost profit. According to the Management, this
proceeding will be settled in favour of the Company and such forecast is based on the outcome of a litigation
relating to the same issue, which the Republic of Croatia won against Republic of Austria.
We have unqualified opinion concerning the above mentioned matters.
Report on other legal or regulatory requirements
On the basis of the Ordinance on the structure and contents of the annual financial statements dated 28
March 2008 (OG 38/08), the Company Management prepared the annual financial statements in the prescribed form which are presented on page 24 to 28 (for publication purposes these will be called Standard annual financial statements) and involve the balance sheet at 31 December 2010, income statement and cash flow
statement for 2010. The Management is responsible for these Standard financial statements. The financial
information in Standard financial statements are equivalent to the annual financial statements of the Company presented on pages 5 to 13 on which we expressed an unqualified opinion.
In Zagreb, 4 April 2011
IHS-Revizor d.o.o. za reviziju i poslovno savjetovanje
Domagovička 11
Zagreb, Hrvatska
Silvija Čičak, B.Sc.Econ.
certified auditor
Tomislav Zuzija, B.Sc.Econ.
certified auditor
Independent Auditor’s Report
On behalf of and for IHS-Revizor d.o.o.
62
HL 2010
Editorial Board:
Editor-in-Chief: Ana Jazić
Board of Editors: Areta Čuturaš, Nikolina Gabelica, Martina Gašljević, Nada Severec
Layout Editor: Dominik Španić
www.lutrija.hr

Here - Hrvatska Lutrija

Transcription

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