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Letter from the Chairman
Dear Shareholders,
2014 was a year highly influenced by the negotiation
process initiated in 2013 with our financial creditors.
On January 2nd, the Board of Directors filed for
the implementation of Article 5 bis of the Spanish
Insolvency Act to ensure the viability and continuity
of the business and to provide a legal framework to
facilitate the negotiations. As communicated to the
CNMV (the Spanish Securities Market Commission)
through a Significant Event on September 23rd, the
Company signed a Lock up Agreement with the
majority of bondholders and senior facility lenders
regarding the terms for its balance sheet restructuring
process.
Today, CODERE and its creditors are still working to
define the final documentation of this restructuring
operation and ensure that all the requirements
stipulated in the above mentioned agreement are duly
met.
Management during 2014 was focused on reinforcing the cost adjustment plans already implemented the previous year.
While revenues continued to fall to €1,385.6 million, representing a decrease of 8.9%, or €135.2 million less, the Company
reduced operating costs by €177 million, representing a decrease of 11.6% compared to 2013. This adjustment led to an
improvement in margins, and resulted in a positive €20.8 million in operating income for the year.
However, these improvements in operating results have been counterbalanced by extraordinary expenses. On the one
hand, financial restructuring related costs amounting to €25.2 million, and on the other hand, the settlement with the
Italian Corte dei Conti which resulted in an extraordinary expense of €24.5 million. Both items strongly impacted reported
EBITDA which fell by 17.6% over the previous year, to €163.5 million. Adjusted EBITDA, which excludes these exceptional
expenses, is by contrast practically flat compared to the previous year, amounting to €213.2 million – versus €211 million
in 2013-.
The other accounting items, financial expenses, including the differences in exchange rates and provision for corporate
income taxes, along with third party minority interests, contributed to a final result similar to the one obtained last year
with a loss of €173 million.
Looking to 2015, the Company expects to improve these results exploiting the increase in operating margins as a result
of the cost reduction efforts and to continue growing as the economic recovery in the various markets strengthens. The
Company is also planning to increase its level of investment, leveraging on the reduction of its financial costs agreed in
the restructuring.
As previously reported, the financial restructuring process includes a call for a General Shareholders Meeting to approve
the agreed terms, the exact date of which has not yet been scheduled.
Sincerely yours,
José Antonio Martinez Sampedro
1. THE COMPANY
14
ODERE Group
C
Our Values
CODERE worldwide
CODERE countries CODERE’s Milestones
Our Organization
Key Figures
16
18
20
22
26
30
32
2. MANAGEMENT REPORT
34
xecutive Analysis
E
Corporate Analysis
36
38
3. CLIENT CENTRICITY40
The client at the heart of the business strategy 42
4. BUSINESS AREAS
44
aming Machines
G
Gaming Halls
Betting Shops
Racetracks
46
50
56
62
5. CORPORATE GOVERNANCE
66
ODERE Shareholders
C
Governing Bodies
Standards of Good Governance
68
70
74
6. RESPONSIBLE GAMING
76
ODERE and its personnel
C
Compliance
CODERE Foundation
CODERE and the society
78
90
96
100
7. AUDITORS’ REPORT
106
uditors’ Report
A
CODERE S.A. and Subsidiaries
108
110
Long-term vision
Operational effectiveness
Innovation
Client centric
1
The Company
CODERE Group
CODERE turns 35 years of business expertise in 2015.
35 years of growth of a project that took its first steps
into the world of gaming machines in 1980, as a private
gaming operator in the Community of Madrid. Since
then, the Company, which currently employs more than
15,000 people, has become a benchmark within the
gaming industry and has an international presence in
eight countries in Europe and Latin America, developing
its business activity in these 5 areas: gaming machines,
gaming halls, sports betting, horse racing and online
activity.
CODERE holds a leading position within its
core business areas and countries where it
operates. The Company is the leading gaming
halls operator in the province of Buenos Aires
(Argentina), Mexico and Italy, and a leading
gaming operator in other markets, such as
Panama, Colombia, Brazil and Uruguay, and in
AWP machines in Spain and has continuously
adapted itself to market conditions, reinvesting
its benefits into new business opportunities.
in terms of profit margin, after deduction of
non-recurrent expenses related to the Group´s
financial restructuring process and Corte dei
Conti´s resolution.
At the year end, the Company manages 52,172
gaming machines, 176 gaming halls, 1,709
betting shops and 2 racetracks, in addition to
its online activity.
It is the first and only Spanish company in the
gaming industry listed on the stock exchange
since October, 19th, 2007 and operates its
business within this complex industry with
complete transparency and accountability.
CODERE Group closed 2014 with revenues
of €1,385.6 million, 70% of which resulted
from its business operations in Latin America,
and EBITDA of €213.2 million. These results,
despite reflecting a fall in incomes, mainly due
to the effect resulting from the application
of different exchange rates, they improved
16
CODERE | ANNUAL REPORT 2014
17
THE COMPANY | CODERE GROUP
Professionalism
The sound and stable growth of CODERE is due to the operational
quality of a highly specialized management team.
The Company has a differentiated business model, diversified by
geographic area and business units, and where the growth, results
orientation and efficiency of the workforce are the keys to success.
Accordingly, the selection, training and care of its personnel are essential in order to achieve CODERE’S business goals.
Transparency
CODERE stands out as an expert group, not only in strict compliance
with all regulatory requirements of the gaming business in each of
the countries in which it operates, but also as a specialist collaborator
with regulatory authorities.
CODERE is a transparent and reliable company, the only listed company in the gaming industry in Spain and operates in highly regulated
markets, subject to strict administrative control.
Our values
The CODERE Group's vision is based on the values of: Professionalism, Transparency, Innovation,
Excellence, and Responsibility, which represent firm commitments of the Company. These commitments,
far from being a mere declaration of principles, are extended to our daily practice and are fully integrated
into the daily management of the Group in all areas of activity.
The Company considers that professional performance under the values described is the best guarantee
of the Company's commitment to creating value for shareholders and main stakeholders.
Responsability
CODERE cooperates with the governments of all countries where it
operates, and its own Foundation works to improve the industry's
development.
Innovation
For CODERE, innovation is the foundation for growth, sustainable
development and differentiation in the market. The Company is
committed to the new technologies and performs research to obtain
the best products.
CODERE's relationships with leading suppliers in technological developments, combined with its experience in various markets and
activities, allows the Company to have the best technology platforms
in the industry.
Excellence
CODERE provides state-of-the art gaming devices to its customers
to improve the user experience. This is accompanied by a top level
customer service in excellent facilities completed with catering and
first class entertainment.
CODERE stands out for providing comprehensive, quality care based on flexible and personalized service.
CODERE
Worldwide
BRAZIL
Betting shops: 7
MEXICO
Gaming machines: 17,414
Gaming halls: 84
Betting shops: 73
Racetracks: 1
*
URUGUAY
Gaming machines: 395
Gaming halls: 1
PANAMA
Gaming halls: 12
Betting shops: 66
Racetracks: 1
ARGENTINA
Gaming halls: 14
COLOMBIA
Gaming halls: 53
(*)The implementation of the recent reform of the IFRS 11 standard has originated a change in the method of consolidation which affects the "Hípica Rioplatense Uruguay" (HRU)
and the Italian company "New Joker". The consolidation of both companies guides itself by the equity method instead of the proportionate method. For the data to be homogeneous and comparable, 2013 data have been changed on the basis of the same criteria : 2014 Uruguay data do not include : 5 gaming halls, 21 betting shops, two racetracks
and 1,868 gaming machines in Q4 2014 reflected in HRU part. Regarding 2013, (appearing in other graphics of the Annual Report), the following data are not included: 5 gaming
halls, 27 betting shop, two racetracks and 1,762 HRU gaming machines.
20
ITALY
Gaming machines: 8,271 (6,999 AWP & 1,272 VLTs)
Gaming halls: 11
Gaming machines network concessions: 1
STRATEGY
SPAIN
Gaming halls: 1
Betting shops: 1,563
21
Throughout 2014, CODERE conducted a policy of costs
containment to cope with the declining profitability of
previous years. Currently, it focuses itself on those business
development projects that could maximize its revenues in
the future. The Company also expects to keep growing
thanks to the existing opportunities in the different
markets where it operates. Moreover, CODERE promotes
the development by regulators of a legal channel for new
gaming modes, technological innovations and channels that
allow gambling operations remotely, but with guarantees
for the users. The Company will enter the new markets
ensuring the utmost professionalism to their clients.
THE COMPANY | CODERE WORDLWIDE
CODERE
countries
ARGENTINA
Maintenance of the main business market
Argentina represents CODERE´s main market, the Company being the largest gaming halls operator in the province of Buenos Aires, with 14 gaming halls and 6,562 gaming
machines, 4.5% more than in 2013. In 2014, one of the main
novelties is the opening of the new Smoking Clubs inside 5
gaming halls, which are designed as exclusive spaces with
state-of-the-art gaming machines, food & beverages facilities and first class customer care.
Moreover, the Company, which implemented the Responsible Gaming Program in 2008, has continued to develop
this project and it currently has 126 counselors inside the
gaming halls offering support to the customers requesting
this type of advice and assistance service.
Business areas
Gaming halls: 14
Start of business operations
1991
2014 Key figures
Income: €489 million
EBITDA: €93.4 million
BRAZIL
Market of opportunities
In 2014, CODERE Brazil undertook several initiatives to
boost the equestrian bets and international Turff. In August it signed an agreement with the Brazilian government
(MAPA) and the Uruguayan government (Department of
State Casinos Uruguay), in order to facilitate frontier traffic
as for racehorses and horse breeding. Both government
bodies share a common interest in developing a model of
betting systems interconnection (totalizers) and in promoting the technological exchange to strengthen the development of the activity in the respective racetracks.
Subsequently, CODERE signed an agreement with Jockey
Club do Rio Grande do Sul to improve the technological
infrastructure and the equestrian structure, in order to modernize and integrate JCRGS bets within the international
market. In November, a new agreement was signed between CODERE Brazil, Hípica Rioplatense of Uruguay (HRU)
and the Jockey Club do Rio Grande do Sul (JCRGS) with
Cristal Racetrack in Porto Alegre.
Business areas
Betting shops: 7
2014 Milestones
New Smoking Clubs inside 5 gaming halls. Thrust of the Responsible Gaming Program in the gaming halls.
2006
2014 Key figures
Income: €2.8 million
EBITDA: €(0.4) million
2014 Milestones
In 2014, CODERE Brazil undertook several initiatives to boost
the equestrian bets and international Turff highlighting the
simulcasting agreement signed between the Maroñas and
Las Piedras Racetracks, in Uruguay, and the Cristal Racetrack
in Porto Alegre, Brazil.
22
COLOMBIA
CODERE strengthens its position
as entertainment leader
CODERE keeps consolidating its leading position in the
Colombian market as one of the leading gaming machines and gaming halls operator in this country. In 2014, the
Company celebrated the 5th CrowN Casinos anniversary
and incorporated the cashless system. The brand oriented
its 2014 strategy on attracting new clients and opening of
the Concert Club spaces in the third quarter for Zona T
Casino in Bogota and CrowN Cali Casino, with an attractive
offer of entertainment and dining options.
The Company is going to implement the online system in
the popular segments of its gaming halls (Fantasía Royal,
Mundo Fortuna and unbranded gaming halls), adapting 45
gaming halls during 2014, following the rules of the regulator in Colombia. It also continues to strengthen the concept
Fantasía Royal Light, adapting to this format 6 gaming halls
and completing a total of 27 along the country. In the third
quarter, the Company also opened a new Fantasía Royal
gaming hall in the city of Bucaramanga.
Business areas
Gaming halls: 53
1984
SPAIN
Sports betting as an engine of business growth
In 2014 CODERE begins to operate sports betting shops
in Castilla La Mancha in the first quarter, in the third quarter in Ceuta and Cataluña and in the fourth in La Rioja,
being the only company present in all autonomous communities legally regulated at this purpose. Moreover, the
Company deploys its online activity in Madrid through its
web app mobile codere.es, in order to continue growing
in other regions when local legal regulation available.
Business areas
Gaming halls: 1
Betting shops: 1,563
2014 Key figures
1980
2014 Milestones
CrowN Brand strengthens its position as an entertainment
leader. Boost of Fantasía Royal Light (Low Cost) concept and
opening of the Fantasía Royal Cabecera gaming hall.
2014 Key figures
2014 Milestones
CODERE started its sports betting business in Castilla La
Mancha, Ceuta, Cataluña and La Rioja. Moreover, it launched the sports betting mobile app, codere.es
23
THE COMPANY | CODERE COUNTRIES
MEXICO
ITALY
Gaming legalty
In 2014, CODERE Italy increased its VLT gaming machines
(6.6%) and its average daily coin-in in AWPs and VLTs, 0.8%
and 6.6% respectively.
Throughout the year, and in line with the thrust to responsible gaming, the Company implemented a program offering
assistance to problem gamblers through a toll-free line and
the website www.giocaresponsabile.it.
Business areas
Gaming machines: 8,271 (6,999 AWP and 1,272 VLT)
Gaming halls: 11
Gaming machines network concessions: 1
Equestrian business boots
In 2014 Las Americas Racetrack celebrated its 71st anniversary and María Félix´s (“La Doña”) Centenary, one of
the most important Mexican movie actresses, and also the
LXIX Edition of the Longines Handicap of Las Américas, the
most important horse race of the year. Moreover, in March,
the racetrack inaugurated the veterinary clinic and the pool
as health care for the horses, thus becoming a premium
racetrack.
In 2014, it has been a year since the agreement signed
with Churchill Downs allowing simultaneous broadcasting
of races held at the Las Americas Racetrack in Mexico City
throughout the entire North America via TwinSpires.com.
Business areas
Gaming halls: 84
Betting shops: 73
Racetracks: 1
1998
2014 Key figures
2001
2014 Key figures
EBITDA (*): €29.4 million
2014 Milestones
Las Americas Racetrack celebrated its 71st Anniversary and
reinforced its facilities launching a state-of-the-art veterinary
clinic and a pool to attend to the equestrian health.
2014 Milestones
The Company is promoting a program of free assistance in
situations of problem gambling.
* Costs associated with the Corte dei Conti agreement in Q3 2014 not included.
24
URUGUAY
PANAMA
Significant business boost
In Panama, CODERE operates a broad range of business
lines: gaming machines, casinos, sports betting shops and
a racetrack. The results of these areas of activity are driven
by continuous improvements CODERE performs inside its
gaming halls in order to ensure excellence in service to its
customers. In 2014, the Company implemented around
200 state-of-the-art new gaming machines, thus boosting
the entertainment offer inside its gaming halls and casino
cash register systems. Presidente Remon Racetrack celebrated its 58th anniversary, the one and only racetrack in
Central America. The 5th generation of jockeys graduated
from the Laffit Pincay Jr. Jockeys Training Academy in 2014.
Business areas
Gaming halls: 12
Betting shops: 66
Racetracks: 1
During 2014, the Sofitel Montevideo Casino Carrasco &
Spa kept boosting its market brand position as Entertainment Flagship(Emblema de Entretenimiento), redefining
its gambling areas, VIP spaces and creating a smoking
gambling area, besides hardly promoting the wide range
of entertainment activities in the casino. The restoration of
the casino finalized in 2014.
* The company “Hípica Rioplatense de Uruguay” (HRU), under the recent reform of the IFRS 11 standard, it changes its method of consolidation using the
equity method instead of the proportionate one, therefore Uruguay reported
data only reflect the results of the Sofitel Montevideo Casino Carrasco & Spa.
Business areas
Gaming machines: 395
Gaming halls: 1
2005
2002
2014 Key figures
2014 Key figures
Income: 18.2 million
EBITDA: (2.5) million
2014 Milestones
Celebration of the 58th anniversary of Presidente Remon
Racetrack, the one and only racetrack in Central America.
The 5th generation of jockeys graduated from the Laffit Pincay Jr. Jockeys Training Academy.
25
Enhancing the wide range of business activities
CODERE concentrates its operations in Uruguay in Montevideo area and its surroundings, operating the National Racetrack of Maroñas along with its partner SLI, the
Racetrack Las Piedras and other related activities: horse
betting system, entertainment halls with gaming & sports
betting machines. The strong technological investment
in both racetracks makes them be the main ones in Latin America to offer simulcasting, a unique simultaneous
satellite TV betting system enabling the broadcasting of
the horseraces all over Europe, North America and Latin
America.
Moreover, Las Piedras Racetrack inaugurated the Jockeys
& Horse Grooms Academy, an important step forward for
the industry to become increasingly professionalized.
2014 Milestones
In 2014, HRU continued to consolidate itself as a major partner for the state in managing the horse racing industry and
opened a Jockeys Academy at Las Piedras Racetrack. Moreover, the Sofitel Montevideo Casino Carrasco and Spa finalized the restoration works committed to the Municipality
of Montevideo and promoted new services and activities for
its clients within its entertainment areas.
THE COMPANY | CODERE COUNTRIES
CODERE´s
Milestones
At the end of 2015, CODERE Group celebrates its 35
years of business expertise within the private gaming
industry. Throughout all these years there have been
several important milestones that marked CODERE´s
history and corporate development.
1980-1984
- CODERE began operations in
Madrid.
- Entered into the markets in
Catalonia and Valencia.
- CODERE begins its international
expansion in Colombia.
1990-1998
- Start of the management of
gaming halls in Argentina.
- Began operations in Mexico
with Grupo Caliente and CIE.
1999
- Syndicated loan of €45 million.
- First acquisition of a bingo hall
in Denia.
- Authorization of the installation
of gaming machines in bingo
halls in Argentina, boosting
profitability.
26
2000
- Expansion in Chile.
- Award of a syndicated loan of €72 million.
- Acquisition of Bingo CANOE in Madrid.
- Acquisition of Operibérica adding 3,500 new
machines to the business in Spain.
2001-2002
- CODERE awarded a contract to manage the
services in 16 bingo halls in Italy.
- Monitor Clipper Partners invests €40 million
in CODERE.
2003
- CODERE ESPAÑA S.L. contracted a
mezzanine credit facility for €135 million.
- Awarded the management and reopening
of Hipódromo Maroñas de Montevideo
(Uruguay).
- Segregation of the business: Spain and
International.
2004-2005
- Start of the management of gaming terminals
in Italy.
- Start of the management of EBT in Mexico.
- Acquisition of Royal Group in Argentina.
- Launch of €335 million bond issue.
- Acquisition of Operbingo in Italy.
2006
- Operations begin in Brazil.
- Launch of €160 million and €165 million bond
issues.
- Acquisition of Bingo Palace and CODERE
Network in Italy.
- Withdrawal from the market in Peru
- Acquisition of Recreativos MAE in Mallorca
(Spain).
- Acquisition of Promojuegos in Mexico.
- The Martinez Sampedro family buys the shares
of the Franco brothers and of the funds ICG
and MCP.
- Exchange of assets between Chile and Panama.
27
THE COMPANY | CODERE MILESTONES
2007
- CODERE IPO.
- Acquisition of 49 % of ICELA in Mexico.
- Acquisition of Maxibingo in Italy.
- Renewal of some bingo licenses in Argentina.
- CODERE and its partners are licensed for sports betting in
the Basque Country (Spain).
2008
Start of the introduction of coinless systems (TITO) in
Argentina.
VICTORIA awarded the license to operate sports betting in
the Community of Madrid and opens the first betting shop
in Spain.
Opening of a new casino in Panama.
Start of sports betting operations in the Basque Country
(Spain).
2009
- CODERE renews the license of the La Plata Bingo Hall
(Argentina).
- CODERE awarded the contract for the reconstruction of the
Carrasco Casino Hotel in Montevideo (Uruguay).
- CODERE inaugurates the Crown Casino Palatino in Bogota
(Colombia).
2010
- CODERE consolidates its position in Mexico and announces
an agreement with Grupo Caliente.
- Acquisition of six casinos in Panama.
- Start of sports betting operations in Navarre (Spain).
- Launch of the first online bingo operation in Italy through
www.codere.it and installation of VLT in the gaming halls.
28
2011
- The CODERE Group signs an Purchase Option on an
additional 35.8 % of ICELA.
- CODERE Italy closes the purchase of FG Slot Services,
Gap Games and Gaming Re over 2011.
- CODERE became the exclusive distributor of
international simulcasting following its agreement with
Jockey Club do Parana (Brazil).
- CODERE approved the group-wide Code of Ethics and
Professional Conduct
- Start of the rehabilitation of Hotel Casino Carrasco.
2012
- CODERE places U.S.$300 million bond issue.
- Acquisition of 60% of the operator Dalla Pria Service SRL
in Italy.
- The Company obtained the license for the ownership,
use and exploitation of the Hippodrome de las Piedras in
Uruguay for 30 years and continues with the restoration
work at the Hotel Casino Carrasco.
- Inauguration of CrowN Casino Zona T in Bogota,
Colombia.
- Renewal, until 2028 and 2029, of five of the licenses for
the gaming halls that CODERE operates in the province
of Buenos Aires (Argentina).
- Award of online gaming licenses for Madrid and Spain.
2013
-Casino Carrasco and Las Piedras Racetrack reopening in
Uruguay.
- The 70th anniversary celebration of the Americas
Racetrack in Mexico. Horse racing simultaneous
broadcasting in North America directly from the Las
Americas Racetrack.
- Renewal of the corresponding operating licenses for five
gaming halls in Argentina.
2014
- CODERE reached an agreement containing the key terms
of the debt and equity restructuring process.
- The simulcasting agreement between Maroñas and Las
Piedras Racetracks in Uruguay and Cristal Racetrack in
Porto Alegre, Brazil.
- CODERE owns the leadership of offline sports betting in
Spain and launches the sports betting mobile web App:
www.codere.es.
29
THE COMPANY | CODERE MILESTONES
Our organization
CODERE Group is structured by geographic regions
and business units. The Company operates in Latin
America and Europe.
CODERE Europe includes Spain - gaming machines, gaming halls and sports betting- and
Italy -gaming machines and gaming halls-. The
control of the operations of each of the business areas in CODERE America is also organized by country.
The Group headquarters and central services
are located in Madrid and are responsible for
the overall strategy and corporate policies,
institutional relations, management of joint
activities and coordination of all business units
operations.
30
Chairman
José Antonio Martínez Sampedro
Legal Advisory
David Jiménez
CIO
Felipe Ludeña
Human Resources
Rafael López Enríquez
Infrastructure
Rafael Ocejo
CODERE America
CEO
Javier Martínez Sampedro
CODERE Europe
COO
Alejandro Pascual
Finances
Ángel Corzo
Marketing
& Communication
Italo Durazzo
Business Development
Fernando Ors
ARG
Bernardo
Chena
URU
H. Casino
Carrasco
Ignacio García
BRA
André
Gelfi
COL
Diego
Felipe
Navarro
PAN
Miguel de
la Marta
MEX
ESP
Rodrigo
González
H Rio Platense
Organization chart at April 2015
31
THE COMPANY | OUR ORGANIZATION
ITA
Security
& Compliance
Serafín Gómez
Audit and Control
Adolfo Carpena
Key Figures
Racetracks
Gaming Machines
TOTAL
TOTAL
52,172
2
MEX
PAN
1
1
ESP
PAN
COL
URU
ARG
10,411
3,144
5,975
395
6,562
Online Gaming
TOTAL
2
MEX
ESP
1
1
ITA
MEX
8,271
17,414
Revenues
Units expressed in millions of euros
CAGR IFRS 2004-2014*
CAGR GAAP 1999-2006
29.2%
16.4%
1664
IFR: International Financial Reporting Standard
SPANISH GAAP: General Accepted Accounting Principles in Spain
CAGR: Compound Annual Growth Rate
1521
1386
1374
2004-2008: Excludes discontinued operations
2808-2009: Excludes the gains or losses on assets disposals
2013-2014: Due to the application of 11 IFRS standard, HRU and
New Joker are not included.
1127
1050
938
968
880
536
428
380
352
354
272
* According to 11 IFRS standard, figures have been adjusted for calculation purposes.
32
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
156
CODERE 2014
Gaming Halls
Betting Shops
TOTAL
TOTAL
1,709
176
COL
URU
53
1
PAN
ESP
ITA
12
1
11
ARG
MEX
14
84
ESP
PAN
1,563
66
BRA
MEX
7
73
EBITDA
Units expressed in millions of euros
CAGR GAAP 1999-2006
CAGR IFRS 2004-2014*
24.5%
11.5%
290
241
231
233
287
213
211
200
199
117
THE COMPANY | KEY FIGURES
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2003
2004
84
70
2002
2001
1999
33
2000
60
43
76
71
2
Management Report
Executive analysis
2014 financial results have been affected by the
international macroeconomic environment, especially
in Argentina, Italy and Spain, by the Group´s debt
restructuring process and several regulatory changes.
Moreover, the final resolution by the Corte dei Conti in Italy
and the sharp devaluation of the Argentine peso had also a
great impact on the Group´s results.
Revenues at year end amounted to €1,385.6
million, 8.9% less than in 2013 and gross operating profit reached €213.2 million, 1% more
than in 2013, despite the sharp devaluation of
the Argentine peso against the euro (about
47.4%).
Business operations in Argentina, Mexico, Italy
and Spain generated most of CODERE´s revenues in 2014, followed by those in Panama,
Colombia, Uruguay and Brazil.
in Mexico that had been previously acquired
under capital lease – and the remaining €17.8
million were reinvested in growth business opportunities.
At the end of 2014, CODERE Group available cash balance totaled €86.7 million, having
completely exhausted the SFA credit line.
In 2014, the total number of gaming machines
declined by 0.1% down to 52,172, mainly due
to a streamlining of the gaming machines fleet
in Spain (about 6%). However, the number of
gaming machines increased mainly in Argentina and Mexico by 4.5% and 2.6%, respectively. At the end of 2014, CODERE´s business
portfolio counted with 176 gaming halls, 1,709
betting shops, 2 racetracks, 1 network licensee
in Italy and online gaming in Spain and Mexico.
Throughout 2014, the Company´s investments
totaled €54.2 million, €36.4 million of which
went to maintenance - including the costs related to the purchase of 1,940 gaming machines
36
MARKETS EVOLUTION
In Argentina, revenues at the end of 2014 reached €489 million, 16.4% less than the previous
year, mainly due to the 47.4% depreciation of
the Argentine peso, highly compensating the
effects of inflation and increasing installed gaming machines number. At constant exchange
rates, revenues would have increased 23.3%.
EBITDA, at year end, amounted to €93.4 million. At constant exchange rates, this would
have reached €136.1 million, which would have
represented an increase of 22.8 % over 2013.
In Mexico, while revenues increased by 4.2%
yoy in Q4 2014 reversing the trend of previous quarters, 2014 revenues totaled €341.9
million, 10.6% less than in 2013. The annual
EBITDA declined by 4.5% down to €75.1 million while at constant exchange rates, it would
have fallen only by 1.1%. In the last quarter,
EBITDA increased by 83.7% over the previous
year up to €23.7 million, mainly as a result of
costs reduction strategies, increasing revenues
and less extraordinary expenses.
partially offset by the dollar recovery against
the euro during Q4 2014. Costs were reduced
by €4.5 million in Panama due to the positive
effect of the non-recurring expenses and, to a
lesser extent, of a constant reduction in costs.
In Colombia, business revenues decreased
€2.6 million mainly affected by the Colombian
peso depreciation against the euro. Expenses
were reduced by €6.7 million, due to several
cost reduction measures, less non-recurring
expenses and to local currency depreciation
against the euro.
Revenues in Uruguay increased by 11% over
2013, due to the opening of the Casino Hotel Carrasco on March 7th, 2013, partially offset by the local currency depreciation against
the euro. Costs were reduced by €12.7 million,
due to the absence of costs associated with
the opening of Casino Carrasco, a minor impairment of assets and the efficiency measures
implemented.
In Italy, 2014 revenues amounted to €263.8
million, 2.1% more than in 2013, mainly due to
a higher average daily coin-in as for the AWP
and VLT gaming machines and an increasing
number of installed VLTs. 2014 EBITDA increased by 36.1% over 2013, as a result of several
measures of cost savings and higher amounts
of coin-in, although without still reflecting the
side effects of the additional fee imposed by
the Stability Law of December 2014 for next
year.
In Spain, revenues at the end of 2014 totaled
€149.9 million, 1.1% less than in 2013. Falling
revenues resulting from the gaming machines
because of a minor fleet and from the bingo
were partially offset by the progressive growth
of the sports betting business. Within this business activity, both sports betting shops number (12% more than in 2013 up to 1,563) and
corresponding revenues increased. CODERE
is currently the only sports betting company
operating in all Spanish autonomous communities legally regulated at this purpose. 2014
EBITDA kept improving amounted up to €17.6
million, 3.5% more than in 2013.
Other business operations
In Panama, revenues fell by 1.9%, mainly because of a minor number of gaming machines,
37
MANAGEMENT REPORT | EXECUTIVE ANALYSIS
Corporate analysis
In 2014 CODERE´s listed instruments underwent a worse
performance compared to its financial markets, mainly
because of the uncertainty resulting from the Company´s
particular financial situation.
RESTRUCTURING PROCESS
On January 2nd, 2014, CODERE´s Board of Directors subscribed the stipulated by the article
5 bis of the Spanish Insolvency Act. The negotiations with the bondholders committee
lengthened several months until September
23rd, 2014 when the Company entered into a
Lock-Up agreement with the majority of bondholders containing the main terms as for CODERE´s debt and equity restructuring process
and which must be ratified by the General
Shareholders Meeting.
and given the Company´s complex situation,
CODERE´s Investor Relations department focused its activities on face-to-face meetings
and conference calls with the Company´s investors, financial analysts and other stake-
This restructuring process supposed extra
costs related to the process itself.
On the other hand, on October 17th, 2014, the
Company agreed with the SFA holders to increase the amount available in 35 million, in
order to meet the payment of the agreement
with Corte dei Conti. As per December 31st,
the Company had completely exhausted the
available credit line.
INVESTOR RELATIONS. CAPITAL MARKETS.
CODERE actively works to gain the trust of the
investors in its business projects. During 2014,
38
holders, providing them with clear and totally
transparent information.
5th, the liquidity agreement started to be managed by Interdin.
The Company´s share value reflected the uncertainty related to the restructuring process
previously mentioned, falling by 55% at the
end of the year.
CODERE´s other publicly-listed instruments,
the bonds maturing 2015 and 2019, had been
also affected by the restructuring process and
underwent a fall of 32% and 26%, respectively.
During 2014, the Company renewed the liquidity agreement to increase liquidity and
thus promote the regularity of the share price,
according to the criteria established by the
CNMV, until its last period of validity (August,
19th to October, 31st, 2014). From November,
39
MANAGEMENT REPORT | CORPORATE ANALYSIS
3
Client Centricity
The client at the heart of the
business experience
With its client-centric approach, CODERE works every day to identify the
clients´ preferences and adapt itself to their specific needs through more
personalized experiences. It seeks not only to meet the clients´ needs, but
also to ensure they enjoy a unique and memorable entertainment experience
in the gaming halls.
With more than 50 million visits registered in
its gaming halls during 2014, the Company
strives to offer a wide range of entertainment
activities of all kinds adapted to local tastes
and preferences to its nearly 5 million clients.
Closely following the business trends within
the gaming markets, both globally and locally,
CODERE focuses itself on all aspects related
to its clients: from its gambling behavior and
habits to the deepest knowledge of their experience inside the gaming halls in order to
get clients´ insights and identify their main motivations.
LOYALTY CLUBS
One of the Company´s main goals is to strengthen the relationship with its clients and ensure their long-term loyalty; therefore the core
activity is the development of loyalty clubs,
now active in all major markets. In 2014 the
Company is proud to have reached the figure
of 2.5 million loyalty members.
The Mexican business is to be highlighted in
this sense, as the 95% of its total gambling
revenues comes from the loyalty program. In
Argentina, significant efforts have been made
in this area, in 2014 reflecting an increase of
monthly active members in more than 30%.
The activities related to loyalty clubs are hog-
42
ging the most important part of Marketing
and commercial management investments,
with an increasing trend year after year, given
CODERE´s clear commitment to get its clients
satisfaction. Through these programs, loyalty
members are given part of the revenues the
Company gets due to their gambling expenditures.
The content of loyalty programs is focused on
providing the members with what they most
value, thus rewarding their loyalty to CODERE.
These are programs of varying content depending on the member type, market, business
line and always adapting to the legal restrictions of each country.
To manage this great business asset represented by the loyalty members themselves, CODERE continues to invest in the development
of its own powerful CRM information system,
called SPACE, which enables the complete integration of all clients management activities
through a single uniform tool, thus providing
significant benefits to the overall business.
MEASUREMENT OF CUSTOMER EXPERIENCE AND SERVICE
With the strong commitment to identify the
major motivations of its clients in order to
make their experience inside casinos and gaming halls a unique and fully satisfactory one,
CODERE has implemented a robust model of
client measurement and analysis to control aspects such as its level of recommendation, loyalty and satisfaction. Traditional models focused solely on measuring customer satisfaction,
an aspect that, given the greater complexity of
the environment and current client´s influence,
therefore it must be complemented by other
linking variables.
developed internationally enabling a better
targeting of strategies and action plans, as
well as more efficient resources management.
In order to track the different touch points
with the client encompassed in "Service", the
Company uses measurement tools such as
"Mystery shopper", thus complementing the
analysis of the aforementioned client experience and contributing to daily reinforce the
culture of providing CODERE´s clients with the
best service.
CODERE unique research models dig into the
most important drivers that determine the best
client experience. Through this identification,
a greater “client-centric” approach is achieved
in a continuous process of operational improvement as for the quality of service offered to
clients. Through a continuous measurement
routine of the exchange of best practices and
results of action plans between countries, a
"Client Intelligence" model is being currently
43
CLIENT CENTRICITY | THE CLIENT
4
Business Areas
Gaming machines
The Company operates its business in different areas
of activity. In 2014, CODERE manages: 52,172 gaming
machines, 176 gaming halls (bingo gaming halls with
gaming machines, casinos, gaming halls with gaming
machines inside the racetracks and third party gaming
halls), 1,709 betting shops and 2 racetracks, in addition to
its online activity.
We should mention the broad and diverse regulation to
which CODERE´s business activity is subject to, depending
on each country and therefore the management of its
business operations is adjusted to the idiosyncrasies of its
eight local business markets.
At the heart of CODERE´s business activity within the
gaming sector are the gaming machines which represents
the Company´s main business area.
The Company operates gaming machines in Mexico, Spain,
Italy, Argentina, Colombia, Panama and Uruguay, all being
very different markets and with different stages of maturity.
Year after year, the Group’s professionals
analyze clients´ tastes and preferences and the
needs of the establishments to meet these demands and provide clients and users with an
overall high quality service. Analysis, renewal
and rotation of models as for the gaming machines, commercial services, cash collection,
technical support and paperwork, are some of
the Company´s main activities.
•
AWP Machines (Amusement with
Prize): Machines that pay cash prizes as a
result of a percentage of total bets on a
GAMING MACHINES OPERATED
BY CODERE
The gaming machines, are located inside the
gaming halls, bars, casinos and racetracks, and
offer cash prizes according to the bets made
by the users.
The different types of gaming machines are
adapted to suit the characteristics of each
market:
46
predetermined cycle of games. In Spain,
CODERE operates Type B machines and in
Italy operates Comma 6A machines.
•
•
•
•
Casino Slots: Casino o gaming machines.
These machines, in exchange for a
particular bet, provide the user with
playing time and eventually, a prize that
will depend on chance. CODERE operates
this type of machines in Argentina,
Panama, Colombia, Mexico and Uruguay.
Electronic Bingo Terminals (EBT):
Machines incorporating games similar to
those using bingo cards within licensed
bingo halls. CODERE operates EBTs
mainly in Spain.
VLT (Video Lottery Terminal): Gaming
machines with cash prizes based on a
percentage of the total amount played
using a random statistical system; CODERE
currently operates these machines in Italy.
Electronic Bingo: A bingo game mode that
takes place through the use of electronic
and computer systems in establishments
interconnected and attached to a
distribution network (interconnected
rooms playing together at the same time).
Clients involved with virtual cards acquired
through gaming terminals and participate
in a lottery based on random number
generation through an electronic system.
It has an innovative structure of rewards
where clients can enjoy bingo games for
fun while chatting and having a drink. In
Spain, one can find Electronic bingo in
CANOE gaming hall.
CODERE Network, as well as AWP gaming machines and VLTs (Videolottery). This type of gaming machine entered the Italian market due
to regulatory changes in 2009.
In 2014, gaming machines business recorded
lower revenues due to a streamlining of
machines portfolio by 6%. At year end, the
Company totaled 10,411 Type B machines in
Spain.
ITALY
inside CANOE (Madrid)
The Group continues its development in the
Italian market and, at the end of the year, had a
fleet of 8,271 gaming machines, 1.2% less than
in 2013 (6,999 AWPs & 1,272 VLTs).
Systems and services for the gaming halls
managers
In 2013, five new management systems
connected to Codere Network were acquired
Growth in number of gaming machines
SPAIN
Gaming machines represent the origin of
CODERE Group´s business which maintains
a leading position as for the type B gaming
machines market despite stiff competition and
gaming market circumstances in Spain.
Above: Gaming machines
57.000 57.000
42.744
2006
49.581
2007
54.818
49.730
2008
2009
52.248
52.172
53.519
2010
2011
2012
2013
2014
NOTE: 2009 & 2010 adjusted data following several agreements and purchases in Mexico,
Italy and Panama. Since 2010, there are gaming machines. In 2014, due to the new method
CODERE operates a large network of interconnected gaming machines in this country called
of consolidation-the equity method-, 1,762 gaming machines in 4Q 2013 and 1,868 gaming
47
BUSINESS AREAS | GAMING MACHINES
machines in 4Q 2014 belonging to HRU are not included.
and
launched
with
Ge.Co.(Gestionale
CODERE). At the same time, the development
of SISMI has been pursued, the management
system supporting processes and typical
operations related to the life cycle of the AWPs
of the managing partners, both to adapt it to
the new provisions of the Italian Monopolios
and to enrich it with new features that bring
added value to managers as well as to increase
the integration with the SPES site.
MEXICO
CODERE started its business operations
in Mexico in 1998 through the business
partnership with CIE and Caliente Group. Since
it started its operations in Mexico, CODERE
has pioneered the field of betting games
and lotteries. CODERE is the main gaming
operator in Mexico with 84 gaming halls at the
end of 2014.
roulettes. The slots incorporate the payment
system Ticket In-Ticket Out providing a major
comfort to the player, and, inside all gaming
halls, the Company counts with interconnected
slots accumulating a common prize with each
playing input.
Among the different levels of progressive
gaming machines, the following ones are to
be highlighted: Beat The Field, Doggie Cash,
Party Time 2 or Quick Hit Platinum, among
others.
In addition, one of the main novelties in
2014 was the opening of the Smoking Clubs
inside the gaming halls Morón, Lanús, San
Justo, Mirador and Ramos Mejía, designed as
exclusive spaces with state-of-the-art gaming
machines, food & beverages facilities and first
class customer care.
COLOMBIA
CODERE operates in Mexico gaming machines
located inside the gaming halls and the
racetrack. During 2014, the number of gaming
machines increased by 2.6% over the previous
year, reaching to 17,414.
In 2014, five new gaming halls Fantasía Royal
& Mundo Fortuna incorporated the online
system & the cashless system, thus enhancing
processes and improving the clients´playing
experience.
ARGENTINA
CODERE concentrates its gaming machines
activity in the province of Buenos Aires as one
of the industry leaders. The Company operates
6,562 gaming machines in this country, 4.5%
more than in 2013.
Inside its gaming halls, CODERE counts
with the latest model of slots, progressive
machines, video poker slots and electronic
According to the standards of Coljuegos
regulator, stating that all casinos gaming
machines must be connected to the online
system in 2016, CODERE started the
installation of structured wiring inside 45
casinos in Bogota and conducted online
system suppliers’ evaluation.
In addition, CODERE initiated the technological
upgrading of 180 units of IGT Poker machines
Left: Gaming machines
inside Bingo La Plata (Argentina).
48
inside Royal Fantasy casinos and unbranded
ones belonging to its traditional business line.
On its side, CrowN brand, in four of its casinos
(Crown Zona T, Palatino, San Rafael and Cali)
incorporated new table games such as Punto
y Banca (additionally it created an offer of this
game especially for the Asian market, mainly in
Bogota). It also strengthened the offer of Texas
Hol’dem.
In CrowN San Rafael casino, in addition to
tournaments, they consolidated the cash
table,during the last quarter. Since September,
Texas tournaments were launched in CrowN
Zona T and Palatino to boost the participation
of this important game and the highs and
lows of the tables were configured to be more
competitive against competition.
In 2014 the 5 CrowN casinos in Colombia
incorporated the cashless system and the free
play system, to support through promotional
gaming the loyalty program and CRM
strategies. As for the Bingo, a reconfiguration
work of the bingo games was conducted, with
more frequent guaranteed and simultaneous
games, increasing the sale of bingo cards over
the previous year. The Company also carried
out training for table and gaming machines
staff in pursuit of excellence in service and
overall customer satisfaction.
PANAMA
Gaming machines represent the source of
CODERE Panama business activities in the
field of gaming. In 2014 the number of gaming
machines amounted to 3,144 nationwide.
Throughout the year, CODERE Panama
incorporated the System Win Systems in
CrowN casinos and Spielo Galaxis system
in Fiesta casinos. Win Systems offers solid
and reliable systems with the experience of
processing billions of transactions without
error, meeting the most stringent government
security requirements established in different
countries.
Moreover, CODERE Panama installed in
the casinos new products with the latest
technology in multi - game machines, bringing
together in a single machine the best games,
diversifying the entertainment offer for its
clients, compared to the traditional gaming
machines.
were installed, highlighting the EGT and
Alfastreet providers, the latter focused on
games of Roulette and Derby, very attractive
for the clients.
URUGUAY
In Uruguay CODERE operates five gaming halls
under the Entertainment Maroñas brand: 18
de Julio, Montevideo Shopping, Las Piedras,
Géant and Pando, with around 1,800 gaming
machines. In 2014, CODERE Uruguay kept
implementing loyalty activities Entertainment
Plus inside its gaming halls. It also launched
Play Bar inside Montevideo Shopping gaming
hall, as a unique and attractive entertainment
offer.
The Company, which also operates the Maroñas
National Racetrack, opened in 2013, through
Carrasco Nobile, the hotel Sofitel Montevideo
Casino Carrasco & Spa, a luxury hotel holding
a state-of-the-art casino of more than 3,000
square meters, with 20 casino tables and 395
slots machines, besides amazing progressive
machines connected to different slots groups
and other progressive machines stand alone.
Each month, different tournaments with
interesting prizes are held at Casino Carrasco.
Throughout the year, 197 gaming machines
49
Above: Texas tournaments
inside CrowN casinos (Colombia)
Gaming Halls
CODERE is a leading international operator managing 176
gaming halls in the countries where it operates its business
activity, including: Bingo halls with gaming machines,
casinos, gaming machines areas inside the racetracks and
third party gaming halls.
These last years, the Company has made significant
investments in this business segment, becoming the
leading gaming operator in Latin, especially in Mexico and
in Argentina, within the province of Buenos Aires.
SPAIN
CODERE operates in Spain the Bingo CANOE
gaming hall, an international point of reference
as for the entertainment offer in Madrid with
36 years of history. More than 380,000 people
yearly enjoy its wide range of entertainment
activities distributed over two floors, with
about 3,000 m2.
Besides bingo, which is one of its flagship
activities, CANOE has been adapted to suit
the forefront of gaming incorporating a full
entertainment offer, including: type B gaming
machines, black-jack, roulette in electronic
format, video bingo gaming machines type B3
and electronic bingo, and offline and online
sports betting all this combined with a varied
and excellent cuisine, thus being one of the
most attractive leisure offers in Madrid.
This space of approximately 150 m2, has 12
betting machines. In 2014, the Company
implemented a convergence strategy in sports
betting channels enabling simultaneous on-off
line betting, allowing clients to start his/her
entertainment experience, for example first
through their mobile phone and then continue
it offline in the gaming hall. Therefore, the
clients can bet through the web app codere.
es, being able to redeem their bets later in the
gaming hall.
Sports Betting, the new entertainment
engine in CANOE
This gaming hall, which was a pioneer in offering
sports betting in Spain in 2008, has turned this
activity into one of its main attractions in 2014,
especially for the young people who gather
themselves in the corner of CODERE Apuestas
to enjoy the live broadcasting of sports events
and feel the betting excitement.
50
Below: Panoramic photo of
the new corner CODERE Apuestas in CANOE
(Madrid).
More technology and “freshness” for one of
the most traditional entertainment places in
Madrid
CANOE also offers its clients state-of-the-art
technology. It counts with 2 HD film projectors
and 20 screens big size equipped with CODERE
TV technology to watch the major sports live
and offering streaming in HD, information,
statistics and quotas in real time, enabling
the clients to access all sports & betting
information on the same screen. The launching
of CODERE TV pilot took place in CANOE in
October 2014, and the great success of this
service allowed its further installation in more
than 100 betting shops in Spain.
In addition to the latest technology, CANOE
redesigned its facilities by incorporating a
large central bar of 28 m2 – currently being
one of its main attractions - next to the new
sports betting corner, on the first floor. The
bar manages to attract new clients in a friendly
way and serve the players, bringing a touch
of modernity and sophistication to their
experience inside the gaming hall.
experience and dynamic effort in the gaming
and gastronomy areas, enrich the offer of
CANOE day by day, consolidating it as one of
the most robust and attractive entertainment
proposal in Madrid.
MEXICO
At the end of 2014, CODERE owns 84
gaming halls located in the best urban sites.
All Company´s activities are held under the
trademarks: Royal Yak, Yak, Jackpot, Mio
Games, Bingo 777, Casino Bingo 777, Caliente
and Las Americas Racetrack.
Due to its business activities distribution and
the number of establishments, CODERE
Mexico is the most important Company within
the Mexican gaming industry.
CANOE también ha ido adaptando y
reconvirtiendo su restauración a las nuevas
tendencias y horarios que el cliente demanda
(encuentros
afterwork,
menús,
tapas,
cenas...), consiguiendo una mayor rotación y
permitiendo a los jugadores disfrutar de una
completa “experiencia en CANOE”.
CANOE has also adapted and reconverted its
gastronomy to the new trends and schedules
required by its clients (afterwork gatherings,
menus, tapas, dinner...), thus achieving higher
turnover and allowing players to enjoy a
complete "CANOE experience".
All this is driven by a "cool" image of the
gaming hall and thanks to different marketing
actions such as: promotions, campaigns and
raffles that not only consolidate the most
loyal clientele, but also attract and retain new
clients.
The prizes are also very attractive and in
2014, over €25 million were handed out. Only
through its traditional raffle "Rebingo, CANOE
distributed, -since 2012-, about 100,000 euros
as prizes.
CANOE´s privileged location, in the financial
center of the capital, along with his vast
51
BUSINESS AREAS | GAMING HALLS
Below: Gaming notice board
(Mexico).
Throughout the year, the Company organized
more than 1,200 events in different gaming
halls and informed its clients about the
promotions, anniversary parties, shows, special
contests in tables (classical games, spin roller,
etc.) or special bingo; all this information
communicated through media or advertising
outside and inside the gaming halls.
In the third quarter, Concert Club strategy was
launched; inaugurating special areas within
CrowN Zona T and Cali for shows performance
(stand up comedies, musicals or comedies).
The new clients, besides having fun in a show,
could enjoy an attractive gastronomy and
gaming experience (tables, gaming machines,
bingo and cocktails 2x1).
One of the 2014 campaigns aiming at
boosting the clients’ traffic towards Yak
gaming halls: “What you really need is genuine
entertainment”, it had a huge impact and
won the first prize Tótem 2014, an award
to the best Mexican advertising, endorsed
by AMPE (Mexican Association of Outdoor
Advertising), ANEPEM (National Association
of Mobile Advertising) and CEMMU (Council
of Mexican Street Furniture Companies) within
the category of entertainment ads.
Clients’ management boost also applied for
the other Company´s brands (Fantasía Royal
and Mundo Fortuna) through several strategies
related to the Loyalty Club, allowing analyzing
and channeling the strategies towards the
clients.
En 2014, CODERE also signed several
agreements with different sponsors to
promote the presence of Yak brand at Box
events, increasing the Company’s visibility in
key events associated with the sports world.
COLOMBIA
CODERE operates in Colombia 53 gaming
halls mainly located in Bogotá, Medellín and
Cali, becoming the first operator of gaming
halls in this country.
In August 2014 it celebrated the 5th anniversary
of the brand Premium Crown Casino, with
different music shows and special promotions
for clients.
Throughout
the
year,
the
Company
implemented the cashless system in 5 casinos
and strengthened clients management (CRM)
through its loyalty program El Club (The Club),
expanding the bases of a management type
"client by client" and reaching a wider scope
in terms of controlled coin in , in order to retain
existing clients.
Starting from September, a new brand building
strategy for Fantasía Royal and Mundo Fortuna
casinos was implemented, thus increasing their
competitive level. For example, through "Mega
Bingo", a simultaneously interconnected
bingo for Fantasía Royal, Mundo Fortuna and
several unbranded casinos (up to 25 casinos),
interesting prizes, including consolation prizes
among those casinos handing no prizes, were
created.
CODERE Colombia also enhanced 6 unbranded
gaming halls which were rebranded to Fantasía
Royal Light (Low Cost) throughout 2014.
The opening of a new casino Fantasía Royal in
November was one of the most outstanding
milestones in 2014 as it meant the beginning
of the Company´s business activities in the
eastern part of the country.
In 2014, as part of the strategy “Obsesión por el
Servicio”(Obsession with Service), the Advisors
Academy was founded, a sales training
program for employees including different
sections as for Operational Excellence (called
“Hábitos”), Service Protocol and Products and
They also promoted strategies focused on
attracting new clients, strengthening the
Company´s leadership position in amusement
and entertainment in Colombia. To celebrate
the World Cup in Brazil, they designed thematic
activities in CrowN Casinos, distributing gaming
experience packs or through sweepstakes of
experience packs valued in $130,000 to enjoy
with friends in CrowN Casinos.
52
Below: CrowN Zona T Interior (Colombia).
Services, through which one promoted the
know-how as for the gaming offer, gaming
machines, promotions, food & beverages
inside the casinos. The program includes also
specific training on sales, loyalty and customer
satisfaction (Cacería del Servicio), in order to
reach a level of excellence.
ARGENTINA
CODERE Argentina is the main bingo halls
operator in the province of Buenos Aires,
owning 14 gaming halls. At the end of 2012,
The Company finalized the installation of TITO
and other coinless systems for most of the
gaming machines, representing 29.3% of the
total number of existing gaming machines in
the province of Buenos Aires.
Throughout the year, the Company organized
a lot of events, anniversaries, gastronomic
events and loyalty promotions which granted
CODERE a leadership position in high quality
amusement and entertainment offer.
With its anniversary parties, CODERE offers
fine settings, exquisite cuisine and shows
designed to pleasantly surprise its clients.
In 2014, numerous events such as the 22th
anniversary of San Miguel gaming hall, the
16th anniversary of Morón gaming hall or the
22nd Anniversary of Lanús gaming hall were
celebrated, among others. The gaming halls
also organized special events on the occasion
of Women's Day, Father's Day or Valentine's
Day.
179 GAMING HALLS
84 Mexico
53 Colombia
14 Argentina
11 Italy
12 Panama
1 Uruguay
1 Spain
of consolidation-the equity
method-, 5 betting shops
from 4Q 2014 belonging to
HRU are not included.
largest in Italy and one of them, Bingo Re, is
among the largest gaming halls in continental
Europe. Besides its gambling offer, the Italian
gaming halls counts with food service and
entertainment activities.
Activities inside the gaming halls were
extremely intense throughout 2014. The
following ones are to be highlighted:
EL CLUB (THE CLUB), the exclusive Loyalty
Program that rewards all members with
special promotions, exclusive giveaways
and a personalized customer care service, it
continued providing benefits to its members
throughout the year.
During 2014 World Cup, the promotion Fan Kit
was a great success. Other outstanding actions
in 2014 were the promotions and unique
campaigns such as "Referred Members" or
“Exchanges for cash."
ITALY
CODERE is the leading gaming halls operator
in Italy with 11 gaming halls and 8,271 gaming
machines, including VLTs (Videolottery). Three
of these gaming halls are among the five
53
(*) Due to the new method
Thematic events: Based in specific dates such
as: Epiphany/ Befana Witch, Women´s Day,
Christmas Season, etc.
Shows: Performances of locally well-known
artists.
Contests: Raffles.
Events with partner operators: In 2014 a new
project was activated along with 70 partners
offering several discounts for CODERE´s
Loyalty Club members and its employees.
Several events were designed for the operator
to exhibit its products/services inside the
gaming halls.
PANAMA
In 2014, CODERE Panama operated 12
casinos, under the trademarks CrowN and
Fiesta, providing a wide gambling offer.
Throughout the year, the Company promoted
several initiatives to improve service and
performance inside the casinos, such as
staff training conducted by the Compliance
Department, in coordination with ASAJA, in
Crown Continental and Riande Airport on the
use of the System "Casino Seguro" (“Safe
Casino”), which organizes the management
and generation of RTE – RTM reports,
currently generated manually in all the gaming
halls. Once the new system is implemented,
it will enable the analysis of the operational
management.
On the other side, CODERE Panama
promoted new initiatives inside the casinos to
celebrate its anniversary parties: Fiesta Casino
Hotel Decameron (11th anniversary), CrowN
Racetrack (7th anniversary) or CrowN Panama,
54
celebrating its first year as a CrowN casino.
Among these activities one should highlight:
Retro night at CrowN El Panama; Ulpiano
Vergara & Dj Hansel show at Fiesta Hotel Soloy
or Pirates Party at Fiesta Washington, among
others.
Another outstanding activity at CrowN &
Fiesta Casinos was the “MultiEmotion” Raffle
with prizes of more than $1 million for loyalty
members registered in the loyalty club and
other Christmas packs for the first 100 Raffle
winners. The Raffle “Bet on the Sun and Win
a Luxury Bag” took place in December at
CrowN Casino Hotel Sheraton, along with the
provider Merkur Gaming.
Another important activities and promotions in
2014:
Emotion Black Jack: On January, 16th, the
Black Jack Tournament took place at Fiesta
Casino Hotel Nacional, with important prizes
of about $3,000.
Promotions: In February, the following
promotions were put into practice: "Live your
summer and Summer Party ", with two weekly
raffles rewarding loyalty clients at CrowN &
Cash Club. Promotions such as CrowN gol
& Fiesta gol, with numerous prizes and live
broadcasts of the finals of the NFL, Copa del
Rey and Champions League took place in
March. From April to June, promotions such
as "Lluvia de billetes" and "Invierno regalón"
and activities such as "Corona tu Suerte”,
“Spin Club” and "Acumula y Gana" had been
implemented (rewarding with cash the clients
who used their loyalty cards and were part of
the Loyalty Club). There were also activities
and promotions related to Brazil World Cup:
"Mundial de Premios" or "Raspa tu Gol",
designed along with Turff Bet & Sport Bar or
Above: 22nd Anniversary
Celebration of Bingo Lanus
(Argentina).
the "Black Jack World Tournament”, handing
over $3,000 in prizes.
URUGUAY
The 3,000 square meters Casino Carrasco is
located in the two lower levels of the building
and is aimed both at hotel guests and general
public.
Above: Slot Machines inside
In 2014, CODERE operates in Uruguay one
casino: the Sofitel Montevideo Casino Carrasco
& Spa. Carrasco Nobile, a consortium led by
CODERE, was granted the concession of this
gorgeous building, a genuine entertainment &
gaming symbol in Latin America in 2009, and
after an intensive process of reconstruction
and restoration, it reopened its doors in March
2013.
The gaming area contains 20 tables and 395
slot machines (32 in $ & 363 in $U) and 20
tables of Roulette, Black Jack, Baccarat, Mini
Baccarat and Midi (10 in $, 10 in $U).
This historic building from 1912, National
Heritage of Uruguay, was designed by the
architect Louis Mallet and is located in
Carrasco, an upscale neighborhood of the city
facing Rio de la Plata, just 5 minutes driving
from Carrasco International Airport and 25
minutes from the city center.
In addition, the clients enjoy a special loyalty
program: Unique Club, which allows clients to
collect crowns and then redeem them for prizes.
The client card offers exclusive privileges and
surprise gifts, in addition to a catalog through
which clients are given the possibility to
exchange the accumulated crowns for drinks
at Alfredo Bar, spa visits, dinners, hotel stays or
tickets to the best shows of Montevideo.
The hotel consists of 116 rooms with 23
different suites, in addition to: a luxury Spa (So
SPA) of 500 m2 and a varied gastronomic offer
in its restaurants: Restaurant 1921, Bar Thays,
Tea Gallery and Alfredo Bar.
55
Additionally, one can enjoy Arocena Premium
Room, a poker room designed to offer the best
experience with two inner courtyards, called
“Kings" and "Queens”, designed for smokers.
Clients can enjoy also a full range of shows with
national and international artists (tango, jazz,
electro pop, indie and rock) in Alfredo Bar.
Casino Carrasco (Uruguay)
Sports Betting
CODERE holds a state-of-the-art expertise as a sports
betting operator internationally, operating this activity in
five countries: Spain, Mexico, Panama, Uruguay and Brazil.
In 2014, the number of betting shops within the Group
amounted to 1,709; almost 11% more than in 2013.
The Company started its sports betting business in Mexico in 1998, with the help of local partners. Most of these betting points are
linked to gaming halls, which offers users a
wide variety of gambling options.
In the markets of Panama and Uruguay, gaming halls are linked to the management of
Presidente Remón Racetrack (Panama), Maroñas National Racetrack and Las Piedras Racetrack (both in Uruguay). Since 2006, CODERE
also operates betting shops in Brazil near the
leading jockey clubs of the country. The Company offers its clients the possibility to bet on
horseracing nationally and internationally.
In Spain, CODERE is the first company licensed to start sports betting operations in the
country and opened the first betting shop on
April, 16th, 2008 in the CANOE gaming hall in
Madrid. Spain represents the 91% of CODERE
Group´s betting shops.
These very different types of gaming halls offer
a state-of-the-art technology to ensure to their
clients the optimum transparency and reliability.
Among the types of bets CODERE operates,
we would highlight the following ones:
I.- Depending on timing:
Ante Post: Closed a few minutes before or at
the time the event starts.
Live betting: Remain open after the event has
already begun.
II. - Depending on the number of bets and
conditions:
Simple bets: A single bet on an event.
Accumulator: Two or more bets on multiple
events. The bettor must win all of them. It can
be double, triple or multiple.
Combined: Three or more bets on various
events. The bettor does not have to win all of
them.
Sports bets represent a gambling modality
that allows multiple options as for the type
of establishment itself that could be either a
specific betting shop or a shop associated with
other forms of gambling, such as casinos, bingo halls, sports venues, racetracks, bars, etc.
SPAIN
In Spain, the offline sports betting business
have experienced significant growth in the last
past years, among the other gambling activities being the one that developed the most
(over 40% in terms of coin-in). This business
activity boost benefited from the new regulations in different Spanish autonomous communities and the increasing popularity of sports
56
Types of Bets
bets which boosted the number of players in
the country.
CODERE had a leading role in the gaming
sector last year, thanks to its betting shops increase by 12% due to the boost of the betting
shops in new communities in 2014: Castilla
La Mancha, Ceuta and Cataluña. Moreover,
the Company also offers the most interesting
business proposition for its partners operators,
providing the highest profit margin per selling
point in the market (up to 5 points above its
competitors).
To this outstanding market positioning, one
should add CODERE Apuestas´s formula for
success: high-quality products, a wide range
of sport events contents constantly growing
and strengthening of its Bets Professional
Management Model, thanks to which CODERE is getting a solid and stable growth, relying on local business partners.
A high-quality product and a wide range of
sport events contents
The Company consolidates its sports betting
machine providing the most comprehensive
gaming offer, to which more USA sport events
are added: Basketball (NBA), baseball (MLB),
Soccer (NFL) and ice hockey (NHL) and double betting markets, in addition to more ante
post and live bets. The live horseraces and
greyhound ones are to be also highlighted
(over 100 daily races all year round) and the
American races, covering up to 18 hours uninterruptedly, doubling the competitors ‘offer,
and new betting options (Improve your prize
and Close your bet), all these making betting
more attractive.
and supporting services to LBOs (CODERE
TV), they offer a professional customer service
-24 hours, all year round-.
façade (Madrid).
Regarding its management model, CODERE
maintains a strong relationship with its partners, reinforcing it by analyzing thoroughly
their needs and providing them with solutions
tailored to each selling point: training, shop
design and support in the implementation of
marketing promotions and activities. The Company carries out this work of pampering its
business partners throughout the entire joint
collaboration, managing a successful growth
Evolution of betting shops
1709
1568
1379
CODERE Apuestas: a professional and highly
qualified team
The management of the sports betting business is made with the help of more than 50
professional employees forming the trading
team, which, from the Company´s headquarters, control and manage the risk. This team is
made up of specialists dedicated to the main
sports (such as football or Spanish leagues), representing a competitive advantage over the
competitors.
Above: LBO Pan y Toros
690
50
55
106
2006
2007
2008
798
285
2009
2010
2011
2012
2013
2014
NOTE: 2009 & 2010 data adjusted following several agreements and acquisitions in Mexico
with Caliente Group. In 2014, due to the new method of consolidation-the equity method-,
This team, while providing contents (live
events, statistics and results management ...),
27 betting shops belonging to HRU from Q4 2013 and 21 betting shops from Q4 2014 are
57
BUSINESS AREAS | SPORTS BETTING
not included.
plan for both sides as for the sports betting
business.
In addition, the Company draws even closer
to its business partners and, since December
2014, it launched CODERE Apuestas Newsletter, a digital publication for its business
partners, keeping them informed on a regular
basis of all the latest product evolution updates and other business developments that may
be of their interest. It also promotes the information of all the Company´s campaigns, promotions and outstanding events through these
channels (selling point, gaming machines, CODERE TV), implementing this type of communication especially in social networks, especially
Twitter (@CodereApuestas) and Facebook.
The Company has made a significant effort to
refresh its brand image inside the gaming halls
and CODERE Apuestas areas, thus managing
to attract a younger audience that integrates
seamlessly with the standard client profile of
the gaming halls and bars. All this coupled
with a more aggressive and fun-filled advertising, better connecting with its clients, gaming
areas full of colors that invite clients to watch
the live sport events with their friends and relatives, sharing the excitement of betting, all
these are just some of the Company´s business
cards, easily identifiable, those of CODERE
Apuestas.
“codere.es” boosting
In addition to these services, CODERE Apuestas brings to its business partners the recognition of a successful brand, backed by a business history of more than 7 years.
Meanwhile, CODERE Apuestas keeps boosting its online activity and at the end of 2014
launched successfully its web application for
Smartphones in Madrid (codere.es). As a consequence, in this autonomous community it
is already possible for the clients to combine
their gaming experience in the on/offline environments, thus optimizing the gaming man-
58
Brand image and marketing oriented at the
service of its business partners
Above: LBO in Boadilla
(Madrid).
agement. The goal is to increase its business in
the autonomous communities where the Company already operates offline, as they go regulating the online channel for sports betting.
In addition, soon it will also be available under
the national online license (DGOJ).
Moreover, in 2015, CODERE plans to continue providing its gaming/gambling platform
with new features and contents to complete
its entertainment offer in Spain, incorporating
online casino games, which will be added to its
sports betting offer.
The Company will also boost the development of offline sports betting in: La Rioja, Extremadura, Castilla y León, strategic markets
that will allow the Company to further develop its business operation model with partners
and lead the overall management of its betting
shops.
MEXICO
CODERE operates 73 betting shops in Mexico
for sporting events of all kinds. Most of these
betting shops are linked to gaming halls, which
offers users a wide variety of entertainment &
gambling options.
Through Sports Book, clients can bet on the
races held at major US racetracks, such as: Santa Anita, Hollywood Park, Lone Star Park, Los
Alamitos, Sam Houston, as well as on national
and international sports (greyhounds, soccer,
football, baseball and hockey).
In 2014, following the World Cup in Brazil,
sports betting increased by 30% in CODERE,
compared with the World Cup in South Africa.
The wide broadcasting of the event and the
increased use of new technologies contributed
positively to this increase. Apart from these
major sporting events, CODERE sports books
activity is driven by football bets, boosting especially during the Super Bowl.
PANAMA
where players can bet on local and international horse races, greyhound racing and other
sports.
In 2013 the new betting shop Turff Bet & Sport
Bar Fiesta Soloy was opened. In Panama, the
Company also operates under the brand CODERE Apuestas.
CODERE operates 66 betting shops in Panama under the brand Turff Bet & Sport Bar,
among which we would like to highlight the
following ones: Monte Carlos and Presidencial
within Presidente Remón Racetrack, the Turff
Bars at Radisson Casino, Sheraton Casino, Plaza Mirage Casino, El Panama Casino and inside
the gaming machines hall at CrowN Racetrack
In 2014, the trainer Joao Escobar started
a seminar for Turff & Hípica de Panamá
employees(betting area). The training was conducted weekly starting from October, with different classes based on promoting the culture
of the Company (Mission, Vision, Company´s
Values) and client-centric techniques.
59
URUGUAY
In Uruguay CODERE operates several betting
shops offering simulcasting. In Montevideo,
the betting shops are located inside the gaming halls 18 de Julio and Montevideo Shopping Center and at the Maroñas National Racetrack (whenever there is a horse race). In 2014,
CODERE continued to operate directly Maroñas National Racetrack and Las Piedras Racetrack, besides the active support given to three
other racetrack in Uruguay (Paysandú,Colomia
and Melo). All these racetracks form the so-called SINT (Turf National Integrated System), an
outstanding project of the Government to continue the revitalization process of the country´s
equestrian industry.
(JCRGS), through which the Company provides services of processing and aggregation of
bets on horse racing, being also responsible
for managing the call-center and the bets by
remote means ADW (Advanced Deposit Wagering), and for the management of the IT
equipment for local races and the international
simulcasting races.
The investment made jointly, totaled R$ 6million, and is intended to technological infrastructure and improvements in the racing structure, in order to modernize and integrate the
bets at Jockey Club do Rio Grande do Sul in
the international market.
In August 2014, CODERE signed an agreement with Jockey Club do Rio Grande do Sul
In November 2014, CODERE Brazil, Hípica Rioplatense Uruguay (HRU) and Jockey Club do
Rio Grande do Sul (JCRGS) signed an unprecedented agreement that allows the international integration of horseraces betting at Maroñas and Las Piedras Racetracks in Uruguay
with horseraces betting at Cristal Racetrack in
Porto Alegre (Brazil). Thus, it is possible that
Brazilian people could bet on horseraces at
Maroñas and Las Piedras (using the HRU system), and the concession company in Uruguay,
could also make available the horseraces at
Cristal Racetrack.
60
BRAZIL
In Brazil CODERE operates sports betting since
2006 along with the main country´s equestrian
clubs.
Important agreements are boosting
the business
Avobe:Façade of Turff Bet &
Sport Bar in Moinhos
At the end of 2014, CODERE operated seven
betting shops in Brazil under the trademark
Turff Bet & Sports Bar. These betting shops
offer clients the possibility to bet on national
and international horse races. These latter are
called international simulcasting and its arrival
in the Brazilian market has contributed to the
recovery of the turf across the country.
of CODERE Brazil, especially in turf media such
as the newspaper Jornal do Turfe.
During the World Cup in Brazil, the “Copa
de Prêmios Turff” promotion was carried out
raffling out tv sets and official football team
shirts. They also launched the “Turff na Palma da Mão” campaign, through which clients
could visualize the horseraces via JCB application.
Throughout 2014, in order to boost sales in its
betting shops, marketing actions intensified:
Through the campaign: “Por que jogo na CODERE?”, (inspired by a marketing action developed in CODERE Italy), surveys were conducted to assess the customer experience inside
the betting shops and also to boost the image
Left: CODERE Brazil “Copa
de Prêmios Turff” promotional campaign
61
Racetracks
CODERE operates 4 racetracks: Las Américas Racetrack
(Mexico), Presidente Remón Racetrack (Panama), and
Maroñas National Racetrack and Las Piedras Racetrack,
both in Uruguay (*).
The horse racing industry has evolved over
time. Today, along with horse racing and betting, it also operates under the racino model,
which allows the installation of gaming machines in the equestrian enclosures or halls belonging to the racetrack, in order to help funding
this activity.
The Company, due to its industry expertise
and excellent management procedures, provides successful formulae to enhance this activity, which in the late 1990s found itself in recession in Latin America.
Las Americas Racetrack (Mexico), Presidente
Remon Racetrack (Panama) and Maroñas National Racetrack (Uruguay) belong to the International Federation of Horseracing Authorities
(IFHA), a prestigious international body that
promotes good regulation and best practices
in international horseracing matters.
track in the northern part of Mexico City, in
an area of nearly 60 acres of federal property.
In 1997, the CIE Group obtained the concession to operate it and after a 3-year renovation
process, it reopened its doors to offer the live
show of horse racings.
In 1943, one planned to organize annually a
great race: the big Handicap of Las Americas, with the participation of horses coming
from all over the continent. Despite the many
difficulties such as the travel distances, time
acclimatization of horses or the height of the
city of Mexico (2,240 meters above sea level),
this race positioned itself as “the great race of
Mexico” (the one that everybody-owners, jockeys, trainers- want to win once in their life).
In March 1943, the Mexican president Manuel
Avila Camacho opened Las Americas Race-
On May, 31st, 2014, Las Américas Racetrack
celebrated the LXIX Edition of the Longines Handicap of Las Américas, the winners
being the horse Diamante Negro (Black Diamond) and its jockey Moisés González García.
At the Jockey Club, they also celebrated María Félix´s (“La Doña”) Centenary, one of the
most important Mexican movie actresses.
62
MEXICO
(*) NOTE: Due to the new
method of consolidation-the
equity method-, Uruguay
does not include HRU data
which would reflect the 2
racetracks.
Through the halls of Las Americas Racetrack an
exhibition dedicated to this actress was organized and the sixth race of the event was named after her, delivering “María Félix´s Cup”.
This event celebration was attended by various
authorities from CODERE and the Racetrack,
such as Juan Miguel Ponce, Vice-president of
CODERE; Sergio Alaman, Managing Director
of Las Americas Racetrack and Mariano Osorio, sponsor of the event, among other personalities from the world of racing and fashion.
In 2014 other important activities took place at
the Racetrack:
On February, 28th, inside Granja Las Américas
they inaugurated the Turibus route from Polanco up to Las Américas Racetrack. Miguel Torruco Marqués, DF Tourism Secretary; Rodrigo
González Calvillo, CEO of CIE Las Américas,
Sergio Alamán and Juan Miguel Ponce attended this inauguration event.
On March, 5th, the veterinary clinic of Las
Americas Racetrack opened its doors. The
center attends the horses running in the enclosure and also serves other equine disciplines. Alongside these facilities, it was put into
operation a pool for the recovery of horses.
At present, the racetrack has been recognized
worldwide as one of the best equipped racetrack and providing the latest technology.
On March, 29th, on the 71st anniversary of Las
Américas Racetrack, they organized along with
Notimex (Mexican News Agency) an exhibition
of 60 photos: “The eyes of Notimex photographers” in which the great moments of sports,
art, culture and entertainment took shape.
PANAMA
Currently CODERE Panama operates the only
active racetrack in Central America, Presidente Remón Racetrack, with capacity to accommodate over 20,000 people and counts with
about 1,000 horses and has about 300 employees. Near the racetrack, there are several betting agencies in which, through simulcasting,
one can live bet for the races conducted both
in the country and abroad, in a friendly atmosphere and with high quality service. In Panama
these agencies operate commercially under
the brand Turff Bet & Sports Bar.
63
Among the important events at Presidente Remón Racetrack in 2014, we would highlight the
following:
The 86th edition of the Classic race Presidente de la Républica: On Sunday June, 1st at the
Presidente Remón Racetrack , the 86th edition
of Presidente de la Republica horserace took
place and the American horse Smart Dna entered into the select group of horses winning this
prestigious award twice.
BUSINESS AREAS | RACETRACKS
Above: María Félix´s Centenary
Above: Turibus Route
presentation at Las Américas
Racetrack
Above: Recovery pool for
horses. Veterinary Clinic at
Las Américas Racetrack
The 58th Anniversary of Presidente Remón
Racetrack: On July 14th an event delivery of
baby layettes at the maternity ward of Hospital
Santo was carried out. A recreational journey
including lots of activities and “ancient games”
with the participation of jockeys and employees followed.
Jockeys Graduation Event at Laffit Pincay Jr.
Jockeys Training Academy
On December, 2nd, 13 trainees celebrated their
graduation from the Laffit Pincay Jr. Jockeys
Training Academy. This school, which opened
on March 17th, 2009, aims to discover great
jockeys and ensure complete education of its
graduates. During the 24 months of the training process, students are instructed in equestrian matters and receive academic training to
ensure complete education. The recognition
of this institution, internationally, promotes the
image of Panama as - “Home of the best jockeys in the world.”
Christmas for Children
These last three years the employees of the
racetrack and the Hipíca Panama SA, carried
out the delivery of presents to the children attending Presidente Remón Racetrack on De-
64
cember, 25th. The event was completed with
numerous surprises and with the presence of
Santa Claus.
Above: Jockey Felix Salgado
together with his horse
Smart Dna, as winners of the
Presidente de la Républica
URUGUAY
horserace.
Maroñas National Racetrack is one of the
most important tourist attractions in the region. In 2003, Hípica Rioplatense Uruguay
(HRU), a company born of a strategic partnership between Sociedad Latinoamericana de
Inversiones and CODERE, won the bid for the
management of the racetrack.
Above: Miguel de la Marta,
Following the racino model, the activity of the
HRU in Uruguay is currently concentrated in
CEO of CODERE Panamá
during the graduation event.
the capital of the country, where in addition to
operating the racetrack, the Company operates a horse betting system and several entertainment halls.
the job profiles that are part of the equestrian
activity.
In 2014 there were more than 100 equestrian
meetings and more than 1,000 horse races at
Maroñas. During 2014, the Company also expanded its betting and signal distribution network in the center of the country and made
progress in improving infrastructure and capacity of the racetrack in order to provide the
best service to its visitors.
Among the outstanding activities of the year:
On January 6th, 2014, the 116th edition of the
José Pedro Ramírez Gran Prix took place, a
locally and internationally acknowledged horserace for the participation of winning horses
and the presence of prominent personalities
from horse racing industry, politics and entertainment.
On its side, Las Piedras Racetrack, reopened
in 2013, continues to consolidate itself as the
second largest equestrian center in the country. In 2014 more than 51 meetings promoting
the passion for this activity were celebrated.
The racetrack launched a new School for Jockeys and Horse Grooms, a very important
initiative for the professionalization of one of
65
BUSINESS AREAS | RACETRACKS
5
Corporate Governance
CODERE Shareholders
CODERE meets the Standards of Good Corporate Governance
to protect the interests of the Company and its shareholders and
monitors value creation and the efficient use of resources.
The IPO in October 2007 allowed CODERE to
expand its shareholders base and access greater equity financing. At 31 December 2014,
68.5% of the share capital was owned by the
Martínez Sampedro family, both through their
direct participation and indirectly through
Masampe Holding B.V. and other companies.
Other directors hold 0.544% of the Company´s
equity and the free float stands at 30.964%.
Masampe Holding B.V. is the company through
which the Martínez Sampedro family participates indirectly in the equity of CODERE. The
chairman of CODERE, Mr. José Antonio Martínez Sampedro, directly and indirectly controls
63.771 % of the entire Group.
68
CODERE
SHAREHOLDERS
(As per December 31st 2014)
DIRECTORS
MASAMPLE HOLDING BV
FREE FLOAT
17.690%
51.346%
30.964%
2.537%
2.184%
MR. LUIS JAVIER
MARTÍNEZ SAMPEDRO*
MS. ENCARNACIÓN
MARTÍNEZ SAMPEDRO
0.544%
12.425%
OTHER DIRECTORS
MR. JOSÉ ANTONIO
MARTÍNEZ SAMPEDRO
51.346%
30.964%
MASAMPLE HOLDING BV
FREE FLOAT
(*) Indirect voting rights on shares directly held by M LUXEMBOURG SIF GLOBAL ASSETS BRISA (2.355%) and Recreativos Metropolitano SL (0.182%).
69
CORPORATE GOVERNANCE | CODERE SHAREHOLDERS
Governing bodies
The General Meeting of Shareholders and the Board of Directors,
with executive and external directors, represent the Group´s highest
governing bodies.
On June 25th, 2014, CODERE held its eight
Annual General Meeting of Shareholders following the flotation of the Company. A large
percentage of share capital was present or
represented, amounting to 42,259,731 shares
or 76.785% of share capital. The Board of Directors counted with the majority support of
the shareholders in the meeting and approved
CODERE´s Annual Accounts and Management
Report as per December 31st, 2013. Similarly,
the shareholders agreed to reelect “Masampe SL” as a Nominee External Director, upon
prior favourable report by the Corporate Governance Committee. Finally, the Remuneration Policy of the Board Directors for 2013 was
submitted to the vote of the shareholders and
received broad support with the approval of
99.4% of the capital present or represented at
the meeting.
Among the functions and duties of the Board
of Directors, without prejudice to the powers
of management and representation attributed
thereto, the Board has the core mission of approving the Company's strategy and organisation as required to put it into practice and
to monitor and ensure that executive management meets the established objectives and
respects the Company´s best interests.
The Board meets as often as the Company's
interests require so or as stipulated by the
Bylaws. During 2014, given the Company´s
particular situation, CODERE´s Board of Directors met twenty-three times, and additiona-
The Company´s Board of Directors consists
of 10 members: Mr. José Antonio Martínez
Sampedro, Mr. Luis Javier Martínez Sampedro
and Mrs. Encarnación Martínez Sampedro are
executive directors; the remaining seven are
external directors (two independent directors,
three nominee ones and the other two directors belong to the category of “other external
directors” under the Law 31/2014 amending
the Spanish Companies Act) and have been
appointed based on their high professional
qualifications.
70
Below: General Meeting of
Shareholders 2014.
BOARD OF DIRECTORS
NAME
POSITION
POSITION NATURE
DATE OF FIRST
APPOINTMENT
DATE OF LAST
APPOINTMENT
Mr. José Antonio Martínez Sampedro
Chairman and Managing Director CODERE Group
Executive
07/05/1999
25/06/2009
Ms. Encarnación Martínez Sampedro
Managing Director CODERE Group
Executive
17/06/1999
25/06/2009
Mr. Javier Martínez Sampedro
Managing Director CODERE América
Executive
07/05/1999
25/06/2009
Masampe S.L., represented by
Ms. Cristina Martínez Soria*
Vicepresident of the Board
Nominee
28/07/1998
25/06/2014
Mr. José Ignacio Cases Méndez*
Former Secretary of the National Gaming Commission.
Nominee
17/06/1999
25/06/2009
Mr. José Ramón Romero Rodríguez*
Managing partner of Loyra Abogados law offices. Specialists
in gambling legislation.
Nominee
17/06/1999
25/06/2009
Mr. Eugenio Vela Sastre
Chairman of Grupo Cosien S.A; Chairman of La Maquinista
Valenciana SA; Manager of La Maquinista Valenciana do
Brasil, Ltda.; Director of COSIEN, SA; Director of COSIENSA
Tecnologia em Estacinamentos, Ltda.; Chairman of COSIENSA
Mexico,Ltda.; Chairman of COSIENSA Portugal, Ltda; Director
of ULTRASEN Sistemas, SL; Director of Velfer Consultores
Dos, SL
Other External
17/06/1999
25/06/2009
Joseph Zappala
Former U.S. ambassador to Spain (1989-1992)
Independent
20/11/2002
25/06/2009
Juan José Zornoza Pérez
Professor of Tax Law at the University Carlos III of Madrid
Other External
17/06/1999
25/06/2009
Juan Junquera Temprano**
Former Secretary of State for Telecommunications and the
Information Society. Managing partner of Ineersum.
Independent
10/05/2012
10/05/2012
Luis Argüello Álvarez
Secretary: Non-member
*Being appointed by Mr. José Antonio Martínez Sampedro
**Mr.Juan Junquera Temprano has been appointed as a Coordinating Director
COMMITTEES
COMMITTEE
Audit Committee
MEMBERS
POSITION
Mr. Joseph Zappala
Chairman
Mr. Juan José Zornoza Pérez
Member
Member
Mr. José Ramón Romero Rodríguez
Member
Mr. Juan Junquera Temprano*
Corporate Governance Committee
Mr. Juan Junquera Temprano
Chairman
Mr. José Ignacio Cases Méndez
Member
Member
Masampe SL (Represented by Ms. Cristina Martínez Soria)
Member
Mr. Juan José Zornoza
Compliance Committee
Member
Mr. José Ignacio Cases Méndez
Chairman
Mr. José Ramón Romero Rodríguez
Member
Mr. Joseph Zappala
Member
Masampe SL (Represented por Cristina Martínez Soria)
Member
Mr. Juan Junquera Temprano
Member
*Mr.Juan Junquera Temprano has been appointed Coordinating Director.
71
Member
CORPORATE GOVERNANCE | GOVERNING BODIES
lly took written agreements without meeting
once, during the month of October.
Under current legislation, and in particular following the recommendations on good corporate governance contained in the Unified Code
of Corporate Governance approved by the National Securities Market Commission (CNMV),
the Board of Directors created three committees with specific functions: Audit Committee,
Corporate Governance Committee and Compliance Committee.
– The Audit Committee: its main task consists
in providing support to the Board of Directors
in its financial oversight and, inter alia, to oversee the functioning of the Audit Department
of the company, establishing standards for the
financial control processes of CODERE and reporting on the annual accounts and other financial statements of the Group.
During fiscal 2014, the Audit Committee has
been composed of four directors (three independent and one nominee). However,
following the amendments to the Spanish
Companies Act by the Law 31/2014, two of
the directors (Mr. Eugenio Vela Sastre and Mr.
Juan José Zornoza Pérez) lost their status of
independent directors, having spent more
than 12 years uninterreptudely in this position.
Given that the current wording of the Spanish
Companies Act requires that in the composition of the Audit Committee should appear
only external directors, two of whom, at least,
must be independent just as the Committee´s
President, in January 2015 the Board amended its Rules to this demand and proceeded
to incorporate an Independent Director to the
Audit Committee, Mr.Juan Junquera Temprano. On its side, the Committee proceeded to
replace the position of President represented
by Mr.Juan José Zornoza Pérez, appointing the
Independent Director Mr. Joseph Zappala as
the Committee´s President. Therefore, at present, the Committee consists of five directors
(two independent directors, one nominee and
two external directors who have lost their status of independent directors).
and experience of directors and reports on the
appointment and dismissal of directors and senior company executives. It also proposes and
oversees the Company's remuneration policy and monitors compliance with the Internal
Code of Conduct in relation to the Securities
Markets, making proposals for improvement
and monitoring compliance with corporate governance rules applicable in this regard.
In 2014, the composition of this Committee,
which has five members, included two nominee directors and three independent directors,
although, as previously mentioned, the entry
into force of the Law 31/ 2014 had as result
the loss of the independent directors status for
two of its members ( Mr. Eugenio Vela Sastre
and Mr.Juan José Zornoza Pérez ).
– The Compliance Committee is made up of
five directors (two independent directors and
three nominee ones). The main functions of
this Committee include the monitoring of the
Group's compliance with domestic and foreign
law relating to gaming, and the evaluation of
the internal control systems of the Company
in relation to the gambling and money laundering requirements.
– The Corporate Governance Committee
incorporates the character and functions that
the Unified Code of Corporate Governance
of Listed Companies recommends for the Appointments and Remuneration Committees.
This committee assesses the skills, knowledge
72
73
CORPORATE GOVERNANCE | GOVERNING BODIES
Standards
of Good Governance
The Standards of Good Corporate Governance are essential for the
growth and development of the Group. CODERE focuses its Good
Corporate Governance activities on two basic practices: A Control
System and Standards of Compliance.
CODERE believes that the establishment of
standards of Good Corporate Governance, undertaken by the Company, is essential for the
development and growth of the Group. CODERE focuses its Good Corporate Governance
activities on two basic practices:
– Control System and Procedures. The aim
is to provide the Group with a fixed organisational structure and corporate culture, applicable to all entities regardless of their area
of influence, establishing formal mechanisms
of action, not bureaucratisation but aimed at
establishing a pattern of controlled delegation
to strengthen a culture of effective management and achieve the strategic coherence of
the Group.
The Critical Operations Committee was the
first tool developed within the system to ensure the flow of information from the peripheral business centres to senior management for
coordinated and coherent decision making.
The Committee is formed by the executive
directors of the company and reviews and approves the operations considered as critical
and thus provides effective financial and legal
control over the management of company's
74
assets. Since its creation, the Committee has
audited and verified more than 1,600 relevant
operations.
The Procurement Office is the second tool
implemented in order to provide a concrete
structure for purchasing and contracting processes, establishing an action mechanism that
promotes transparency, ensures the concurrence of suppliers and results in a reduction
of acquisition costs for the company while promoting good corporate governance. Since its
creation in mid-2009, the Procurement Office
has managed over 605 significant procurement
transactions at the corporate level, with a reduction in purchasing costs over 14% of the
established budgets. In 2011 we completed
the deployment in the different geographical
areas where the Company operates and during
2015 we plan to create the International Procurement Office.
- Standards of Compliance. These Standards
are an essential piece that shows the special
commitment of the Group to good business
practices in the gaming sector, a highly regulated and sensitive industry. The Group's strategy is to go beyond what is required by re-
gulations and specific legislation and operate
with a true spirit of fair play and responsible
gaming.
Earlier this year, to mark the entry into force of
the Law 31/2014 to amend the Spanish Companies Act, there have been several milestones
with high impact on the corporate governance
of the Company , highlighting , inter alia, the
following ones:
In January 2015, the Board of Directors agreed
to amend its Rules to adapt it to the new requirements and approved its restated text .
During the same Board meeting, and in compliance with the stipulated by the above mentioned Act, the Board resolved to appoint the
Independent Director Mr. Juan Junquera Temprano, Coordinating Director, empowered to
call meetings of the Board or the inclusion of
new points on the agenda, echoing the concerns of external Directors and oversee the
evaluation of the Chairman.
In the above mentioned extraordinary meeting, the General Meeting of Shareholders
also agreed unanimously to set the maximum
amount to be paid to its Directors, in their capacity as such, in the amount of 743,000 euros,
starting from 2015 and until the General Meeting does not approve its modification. This
amount, proposed by the Board itself, corresponds to the remuneration Directors received
in 2014.
In addition, as imposed by the current text of
the Companies Act, and following the recommendations of the Unified Code of Good Corporate Governance for listed companies, at
the meeting held on January 2015, the Board
of Directors, after the evaluation of its performance and that of its Committees and of the
chief executive of the Company in 2014, they
approved the assessment report and the action plan to correct the deficiencies detected,
produced by the Corporate Governance Committee.
On March 24th, 2015, the Board decided to
convene an Extraordinary General Meeting of
Shareholders for April 27th, 2015, on first call,
and April 28th, 2015 on second call, in order
to, among others matters to be discussed,
approve the proposed amendments to the
Bylaws and the Regulations of the Company´s
General Meeting of Shareholders to adapt
them all to the new legal requirements. The
revised text of these regulations was approved
unanimously by the shareholders present or represented at the meeting, whose celebration
was held at first call.
Also, in compliance with the provisions of
the current text of the Companies Act, at its
meeting held in February 2015, the Corporate
Governance Committee, following a favorable
report issued by the Compliance Committee,
they agreed the incorporation to the Board of
Mrs. Cristina Martínez Soria, on behalf of MASAMPE SL, following the resignation for professional reasons of the former representative,
Mr. Jose Maria Bermúdez Lastras. The Board
of Directors agreed to take note of this replacement at its meeting held that month.
75
CORPORATE GOVERNANCE | STANDARS OF GOOD GOVERNANCE
6
Responsible Gaming
CODERE and its personnel
CODERE´s commitment to Responsible Gaming is based on strict
regulatory compliance and the development of the communities
wherever the Company operates. The Company´s commitment to
Corporate Social Responsibility has been integrated into the Group´s
business strategy and operational plan.
CODERE´s business activity takes into account its relationship with the Company´s main
stakeholder groups- regulators, customers,
shareholders and employees-who are the drivers of the Company´s growth and allow the
Company to be properly valued, all of whom
are the targets of our Corporate Social Responsibility policy.
CODERE develops strategies that go beyond
what is required by the competent business
management and provide intangible reputational gains that allow us to obtain a clearly
differentiating competitive advantage. Moreover, given that the company´s business activity
may a have a social impact, CODERE requires
its managers, employees and partners to fully
cooperate with regulators and users to professionally respond to their concerns.
In line with the management and processes
optimization plan started last year, CODERE
continued its progress in all HR areas to keep
building a personnel management model able
to generate efficiency and profitability within
the Group´s business units worldwide.
Targeting human resources as a hub, and always aligned with the corporate values, the
Corporate Human Resources Department
(CHRD) continued to develop an integrated
system that encompasses different aspects
such as the unification of management policies
and principles, clarification and standardization of processes and development tools, definition of skills, functional organization and all
aspects related to the homogeneous management of human resources, both in terms of the
employee seen as an individual and as a team.
During 2014, within the Company´s restructuring process, CODERE conducted several necessary adjustment measures such as expenditure restraints, headcount restructuring and
other measures of optimization and efficiency
in all areas, thus enabling the Group´s recovery.
In this scenario, the CHRD promotes the actions and / or tools necessary to boost these
processes locally, as well as the measurement
tools necessary to ensure its rigor and continuous improvement.
78
SISTEMA INTEGRADO DE
Tools implementation within
the Business Units
HR POLÍTICAS
POLICIES RH
MEASUREMENT, CONTROL AND
INTEGRATED SYSTEM
IMPROVEMENT TOOLS
Job Description/ Job Title
Presencia física en los países
Validation of Key Pre - Executive
Potential
Certificaciones acreditativas del
conocimiento
Skills Assessment
Implantación y acompañamiento
HR
Methodologies
and Tools
Development
Sharing of
knowledge and
best practices
PERSONS
START-UP DRIVING ACTIONS
HR WEBSITE
Corporate Library
Local library
Documentary support and group
discussions
HR KPIs monthly report
Annual HR budget
Follow-up and control
2014 – HEADCOUNT SIZE AND COSTS REDUCTION
(headcount net variation compared to 2013 : −2,662 employees)
4,248 New recruitments
2 Processes of Key Pre-Executive Potential Validation (for 55 employees)
139,440 Training Hours
1,223€ HR total investment per employee
7,251 Departures :
3,264 Voluntary Departures
3,987 Dismissals
HR Budget €19.3 Million :
13.45% less than the initial budget
27.7% less compared to 2013
79
RESPONSIBLE GAMING | CODERE AND ITS PERSONNEL
Consolidating methods and tools
In order to maintain the trend of personnel
investment optimization, we kept working on
the continuous improvement of the processes
and projects initiated in 2013. In this regard,
the HR´s KPIs Report, although maintaining
its main purpose of management and decision
making tool, it was being consolidated with the
improvement and enrichment as for the information it contains: we analyze the information
received monthly to broaden the analysis and
ratios and incorporate new graphics and conclusions and, starting this year, comparisons
can be made among all the available data. Due
to these improvements, the HR´s KPIs Report
is a source for other reports coming from other
departments and / or countries.
The 2014 HR Budget Report has been also
restarted on a quarterly basis with a further
breakdown of concepts, allowing a greater
and more comprehensive monitoring and control of how and where resources are invested
within the HR area globally.
Besides, the CHRD along with the other
Group´s corresponding HRD and Economic
and Financial Departments adjusted the current targets model for 2014, according to the
Company´s circumstances and its current situation. Exploiting the synergies and the Group´s
strategic plan, we proposed a new approach
in setting the targets for 2015 onwards, in ac-
cordance with the new key management lines
CODERE must follow to achieve sustainable
and profitable growth.
We also maintained in force the other processes previously implemented such as the structure of Corporate Perimeter (key personnel
within the Group undergoing a special followup), with its consequent monitoring and permanent updating process, and the tax optimization programs such as Suma+ Program and
the Flexible Remuneration plan.
Driving eficiencies
During 2014 we placed a special emphasis on
the implementation process of policies and homogeneous procedures for the human resources management plan started in 2013.
This process aims to ensure the use of a common methodology across all Group´s Business
Units as for the basic functions of Human Resources area, being aware that each country
may have its own specific peculiarities that one
should take into account, making the necessary local adjustments of the policies and processes already established.
In this regard, with the aim of disseminating
the policies and sharing the practices related
to them, we launched a common website on
the intranet creating a Community of HR along
with the different Group´s Human Resources
TAX OPTIMIZATION 2014
FLEXIBLE
•
•
•
82 employees joined it
€214,840.78 in ordered products
Products ranking:
1º Medical insurance.
2º Food allowance.
3º Computers/tech products.
•
•
•
18 employees
519 travel days applied
€209,932 total exempted amount
TAX OPTIMIZATION
PROGRAMA SUMA+
80
Departments. From this web one can access,
view and provide all the information regarding
the policies and procedures of the area and
share both corporate and local knowledge.
As per today, about 500 such documents are
being shared.
We also offered training to local HR teams.
Through a series of modules - which, once
completed, certify the trained personnel as HR
executives – it is ensured that those professionals are trained and qualified to perform their
roles within the human resources area as required and referred to in the policies and procedures established.
The Success Critical Factors (SCFs), defined in
2013, were used both for Profiling Posts within
the Group and for the selection of new candidates: the Interview on Professional Skills, plus
a basic communication process in order to get
information directly from the candidate, it is an
essential tool for recruitment decision making
process, since its goal is to find professionals
who, in addition to adequate training and experience, possess the necessary “skills” (success critical factors) for adequate performance
as for their job position.
In 2014 we conducted a Validation of Potential
session in some of the Group´s business units
(Spain and Italy). After identifying where there
might be Key Pre-Executive Potential - among
employees with intermediate executive and
expert positions-, we proved the existence of
potential through the methodology of “Situational Assessment Center” (SAC).
This methodology will be applied to the rest
of the Group´s business units within the next
few years.
Furthermore, we renovated and updated the
web application for the Performance Evaluation by launching the Online Tool for Skills Assessment. Through it, both the evaluator and
the evaluated employee will be enabled to
prepare, implement, validate and display their
assessments easily, in order to boost a system
able to assess the performance of the employee in his corresponding job position, maximizing his/her contribution to the company´s business and generating the pursuit of continuous
improvement, through his/her recognition, development and training. This web application
has already been implemented in Spain and
will be used progressively in all Group´s business units (Italy, Mexico and Panama in 2015),
streamlining the process and generating the
added value of being able to store and centralize in a powerful corporate ERP (SAP HR)
all the relevant information related to the more
than 15,000 Group´s employees.
These processes forming the HR Management
Plan aim mainly to provide CODERE with an
effective model as for the human resources
management process, focused on merit, able
to detect and develop their employees inside
and outside the organization and thus enabling
them to achieve the maximum performance level of their potential skills.
PERSONS MANAGEMENT AND DEVELOPMENT
POTENTIAL VALIDATION
REGULAR POTENTIAL IDENTIFICATION
POTENCIAL VALIDATION FOR
PROMOTION TO SPECIFIC POSITIONS
KEY PRE-EXECUTIVE POTENTIAL
VALIDATION
Design CODERE´s Potential Identification process to create a “bank”of
employees who could assume major
responsibilities and work contents
within the company in the future.
Design the potential validation process for promotion in Codere to establish a development strategy which
could help orient in
the future concrete employees development processes
Validate employees potential and
orient their generic potential to a key
business area where the employee
could follow a development process
related to his/her profile and to a strategy of medium targets clearly established.
81
Communication is the key
Internal Communication has played a strategic role in 2014, especially in the stages of
uncertainty that have befallen the process of
financial restructuring of the Company. Communicate with transparency and honesty is an
essential pillar in the company-employee relationship. With this aim, CODERE Actualidad
was born in 2014.
This biweekly newsletter is a direct communication channel between the Chairman´s Office
and the Company, with the desire to inform all
employees about the Group´s main projects
and milestones.
Through its 22 issues in 2014, employees were
informed with absolute transparency about
the relevant aspects of CODERE´s evolution.
Besides the Editorial “From the Chairman´s
Office”, one can find interviews with managers
and key personnel, articles reflecting relevant
projects and internal news enabling a better
knowledge of CODERE´s business areas worldwide, not to mention the interviews with personnel inside the gaming halls.
In addition, quarterly, the Corporate CFO,
Angel Corzo, presented the Company´s financial results, thus regularly updating the
personnel on the Company´s situation.
As part of this biweekly newsletter, we could
mention a press review, a training video and
a recommended reading as well as a survey,
through which the employee is given the opportunity to express his/her view on issues of
concern and it also allows the Editorial Board
to know the employees ‘opinions, in addition
to provide them with direct e-mail access to
the Chairman´s Office and the Internal Communication Department.
ARGENTINA
Training programs
Introduction to the processes and operating
methodologies, entailing different courses:
- ISO Standards: In relation to the audit conducted in September 2014, the employees
were training by means of the e-learning platform concerning the ISO Standards, the Quality Policy, the processes certified by the ISO
Standard 9001:2008. This course consisted of
three units, each one of which was mandatory
for certain job positions. The audit conducted
as a follow-up to certification ISO 9001 standards, under the 2008 version thereof, was
successfully passes. In 2013, CODERE Argentina was awarded ISO 9001 Certification for
the Customer Assistance Processes, backed
by international standards of quality, having
successfully passed the first IRAM 90600 Certification audit, in the 2010 version thereof,
having been awarded the certificate for three
years (Complaints Management Systems certification).
SAfety & Health program
The objective of this Program consists of training in prevention, health and risks which
could arise during work in accordance with
the Safety & Health-related regulations. The
training sessions were divided among the following topics:
- Fire & Evacuation: This training activity lasted one full day and was provided to the entire
personnel.
- Money Laundering: The objective was to
train the entire gaming halls personnel for the
purpose of complying with the regulations in
force concerning Money Laundering and the
Financing of Terrorism. This training was provided via e-learning.
- First Aid & CPR: For the purpose of instructing the brigade members as to basic first aid
and cardiorespiratory resuscitation techniques.
Provided for different job positions.
82
Above: CODERE Actualidad
newsletter screenshot.
- Prevention of “struck by” or “struck against” injuries: Activity provided for all personal
for the purpose of preventing unsafe conditions.
Left: Evacuation drill in Getafe (Madrid).
- Occupational Risk: Training aimed at preventing occupational accidents:
•
Kitchen: Prevention of heat burns, cuts
and puncture wounds and accidents and
handling of substances.
•
Maintenance / Electronics technicians:
Instruction on the correct use of handtools and tool ergonomics, jobs involving
welding, prevention of electrical hazards,
etc. This activity took one hour and was
provided for maintenance, cooling, receivers and collectors technicians.
- Ergonomics: Aimed at providing information
on the proper sitting/standing positions for
doing an injury-free job for correctly lifting and
moving loads manually. Provided for busboys
and waiters and all employees doing sewing
work.
- Food Handling: Training in the basic concepts for food preparation, conservation and
presentation, focusing on hygiene and correct
handling. Provided for different jobs profiles,
this activity was held in the San Martín gaming
hall.
MEXICO
Interested in fostering organizational health
and enhancing the human capital, innovative
strategies have been promoted via the Human
Resources department for attracting, developing and keeping talent, some of the most noteworthy being:
Organizational health programs
- BienStar: For the purpose of bolstering the
organizational climate, further strengthening
corporate identity and stimulating employee
participation and development based on for
pillars: Communication, Recognition, Integration and Development.
skills and attitudes by becoming creators of
“Moments of Truth”, having a positive impact
on the business results. This program includes
different units delving into emotional intelligence, managerial skills and customer service.
- BTP Your Challenge / Generation 2015: The
first leg of the BTP (Buscando Tu Permanencia) Tour was carried out under the theme of
the Formula 1 races. Visits were made to all
of the Univision Sports Networks, boosting the
feeling of belonging to and forming part of a
team-oriented view. More than 5,008 employees attended the event. The second stage
was focused on reducing the Company’s uncertainty resulting from the Group reorganization process.
- Avanza: This is a Performance Evaluation process.
- Talent Hotbed: Training plan carried out for
analyzing the needs of the employees in the
realms of: Communication, customer service,
Excel or Project Management.
- Entertainment University: Objective: promoting the professionalization of the Group’s
employees thanks to a program resulting from
CODERE’s agreement with the Commercial
Banking School (EBC). In June, ten students
graduated, having earned a Bachelor’s Degree
in Entertainment Business Administration and
a degree officially valid for the Office of the
Secretary of Public Education. A total of 33
new enrollees from two further generations
are currently in the process of completing their
studies.
- “Moments of Truth” Factory: Starting as
of November 3rd, a total of 63 managers and
689 middle-management employees had the
chance to further develop their know-how,
- Leaders in Development: Commercial Banking School diploma aimed at training leaders
of positive action by strengthening their organizational, teamwork and communications
skills. A total of 91 employees from three
graduating classes have completed their stu-
83
dies encompassing the fields of: talent management (Human Resources), strategic view
(Operations), sales and service (Marketing) and
finances for non-financiers (Finances).
- “Apply Yourself”: Commercial Banking
School program aimed at CODERE employees
completing their secondary / higher education
by means of the single Ceneval (National Center for the Evaluation for Higher Education)
examination. Up to 2014, a total of 5 graduating classes have taken part, having earned a
total of 49 secondary education certificated.
- National Adult Education Institute (INEA):.
Program offering the “Granja las Américas”
and “Hipódromo de las Américas” racetracks
personnel the possibility to complete their
primary and secondary schooling thanks to an
agreement with the National Adult Education
Institute (INEA). A total of 15 people earned
their official schooling completion certificate in
2014.
- Organizational Climate Actions: The actions
for further enhancing the working climate set
out in the survey conducted in 2013 were carried out. A total of 50 actions were detected
which will require the participation of 350 employees.
- “Aprendiendo Del Negocio” (ADN) [Learning from the Business]: Program enabling
the administrative personnel to get to know
the business units of the “Las Americas Racetrack” and the “Granja de las Americas”, as
well as the main processes on a hands-on basis. In 2014, a total of 57 employees took part
in this program.
- H.A.B.I.T.O.S.: Course aimed at providing
concepts and tools of excellence for generating a corporate culture making it possible to
provide the customers with the finest service.
In 2014, a total of 635 people took part in this
program.
customer entertainment skills.
- CODERE Informs: Publication about CODERE and the business in the in-house notices spaces and bulletin boards in the monthly
newsletter.
- Children’s Contest: On the occasion of
“Children’s Day”, a “Drawing a Day with My
Family” art contest was held, in which the children of employees from the “Las Americas”
complex drew pictures of what a regular day
with their elders is like.
- Other activities: Holding celebrations of Special Days, recognition of the work done (Week
of .. or Salesman of the Month), special sales
with discounts, etc.
CORPORATE RESPONSIBILITY PROGRAMS:
- Hurricane “Odile” Solidarity Campaign: In
September, following hurricane “Odile”, the
HR team promoted initiatives for providing
support for the “Los Cabos” and “La Paz” casino employees who were victims of the hurricane with savings fund loans and food. A food
drive was held at the “Las Americas” complex
to be distributed to the affected areas.
- Healthy Life Program: In-house program carried out at the “Las Americas” Complex focusing on health care.
PROCESS ENHANCEMENT PROGRAMS
- HR Certification: A total of 39 HR employees
have gone through a certification process for
enhancing their know-how and skills in the
areas of: Recruiting & Screening, Personnel
Management, Labor Relations and Situational
Assessment Center.
- Regulatory Plan: Training for dealing with
the inspections and fully complying with the
regulations of the Office of the Secretary of
Labor and Welfare.
- Code of Ethics and Conduct Training
ITALY
- 777 Induction Program: Training aimed at
the homologation of the process of the induction of newly-hired personnel.
CODERE Academy
- Food & Beverage Academy: Updating and
professionalization of the employees from these areas for promotion a service of excellence.
- Farm School: Implementation of the programs: Certification and Introductory Workshop for instilling the culture and promoting
October 22nd marked the end of the first cycle
of CODERE Italy Talent Program designed
and carried out by CODERE Academy, a program for developing leadership and professional efficiency with the objective of creating
tomorrow’s managers. The participants had a
team of mentors from the Group, including:
84
Germana Alviggi, Jacobo Lopez Zafra, Vincenzo Orofino, Alejandro Pascual, Marco Raccuini
and Massimo Ruta.
- “InCODERE”: A new in-house communications tool disseminating information on the
Company: “InCODERE - Il nostro mondo
tutto da vivere. This publication puts out 4
issues a year and includes: CODERE events,
news and initiatives. December issue is devoted to recapping the most outstanding and entertaining moments of the year.
- Gaming Cup: In 2014, the 3rd edition of the
Armellini Gaming Cup, a tournament organized in memory of Massimo Armellini, our colleague from Lottomatica, who made a major
contribution to developing the gaming sector
in Italy. Gaming companies including the following ones take part in this tournament:
Eurobet, Cogetech Iziplay, Paddy Power, CODERE, Italian Customs Offices Association,
Lottomatica, BetterSlot, Sisal Matchpoint,
Bwin, Intralot and Admiral Interactive.
BRAZIL
Training
In 2014, nearly 20 employees were awarded
college scholarships. In all, a total of 1,215
hours of Spanish classes were taught face-toface and via Office Communicator to the employees in other provinces. Agreements were
also signed with language institutes for English
classes at up to 25% discounts.
- “Conexão CODERE” [CODEDE Connection]
Newspaper: In 2014, a new in-house communications tools was implemented, being emailed to employees monthly. This newspaper
includes news and information connected to
the business, highlighting the best employees
of the month or information on other of the
Company’s business units and advices related
to language learning (Portuguese and Spanish).
- Achievement Rewards Program: In 2014,
a project was gotten under way with the aim
of evaluating the employees (cashiers) who
had surpassed their individual objectives and
achieved the top 2 classifications in each business unit. The number one-ranked employee
collects 1% of the objective surpassed, and the
runner-up, 0.5% for profits in foods. Besides,
85
it is required that the business unit have surpassed its monthly goal (EBITDA). In all, the
profit totaled the sum of R$ 14,022.26 for 13
employees.
- Integration Meeting: In February, an event
was held at a hotel located near São Paulo
(Mairiporã), which was attended by executives, managers and other co-workers from the
São Paulo office and from the Río de Janeiro
and Porto Alegre business units. In addition
to informing on the strategy guidelines for the
year, this event promoted integration and teamwork.
COLOMBIA
- 2014 Bogota International Half Marathon:
As in previous years, CODERE Colombia took
part in the Bogota Media Marathon, promoting the health, well-being and healthy living
habits of its employees. A total of 76 of the
Group’s athletes took part in the latest edition
of this race, held on July 27th. Their participation was through the United for Colombia
Foundation, through which the Company collects funds for the rehabilitation of victims of
the armed conflict.
Other activities
- New Bogota headquarters offices: In 2014,
CODERE Colombia completed the new more
comfortable and convenient Company facilities, located in a new building equipped with
modern spaces including: Fitness center, a
spacious dining hall seating 160 people and a
training room seating 50 people.
- School Scholarships: The HR Department
awarded 80 school scholarships for the elementary and secondary students who are the
children of employees and who had earned the
best grades for the 2013 school year.
PANAMA
Benefits for employees
-Multi-Benefits Card: The “I’m CODERE”
Card is being promoted through the Marketing Division and includes 5 categories of affiliated businesses: shopping, education, entertainment, restaurants and health. This card
offers discounts of 5%-50% at affiliated establishments throughout Panama.
In-house events:
- Ten-Years of Service Award: The employees
having completed 10 years of service were given gifts as a token of distinction and recognition.
- Mother’s Day: CODERE Panama paid a special tribute to mothers by holding a commemorative luncheon, in addition to contests,
gifts and surprises.
- Co-Worker of the Month: CODERE Panama
recognizes its employees who are most outstanding for their attendance, punctuality or the
performance of their duties. Each person selected is given a diploma, a gift and has lunch
with the manager of his/her casino along with
a companion.
- CODERE Values Cup: For the purpose of
promoting playing sports and peacefully getting along with others, an in-house tournament
was held with the participation of around 200
employees, having been of a nationwide scope
for the very first time.
- CODERE Emergency Brigade: For the purpose of fostering a preventive culture, the Surveillance and Security Department set up the
emergency-prevention brigades. The different
brigade members took part in the training
workshops including the topics of: Evacuation,
fire prevention, the use of fire extinguishers,
etc. These measures were carried out at different CrowN Plaza Mirage, Fiesta Nacional and
CrowN Hipódromo racetrack business units.
- Christmas Activities: The 2014 Christmas
celebration included the participation of the
employees’ children, who enjoyed visiting the
“El Charco” pond trail in addition to attending
a theater and recycled crafts workshop for the
purpose of learning the importance of taking
good care of the environment.
- Grand Christmas Tree Illumination Ceremony: Christmas carols sung by the San Andrés chorus, and the youngest children were
the center of the “2014 Grand Christmas Illumination Ceremony” held on December 5th.
CODERE Panama gave out Christmas baskets
to the employees.
86
Training
Left: Gaming Cup 2014
celebration
- Customer Service Induction Training: On
June 1, 2014, the Training Department prepared a workshop at the “Presidente Remón” Racetrack for the purpose of training the personnel who would be working at the “President of
the Republic’s Classic” serving our customers.
- Stress-Combatting Salsa Dancing Workshops: For the purpose of training, motivating
and lessening the effects of workday stress,
the first Salsa Workshop for Office Employees
was held, having met with success.
Left: CODERE Brazil Integration Meeting
- “Somos uno, Somos todos”[“We’re One,
We’re All”]: This initiative is aimed at contributing to the employees’ personal development
and improving the working climate.
- New Employee Academy: In 2014, different academies were held for the newly-hired
employees working in the areas of: Cashier’s
Desk, security, CCTV, SAT and table academy.
Left: CODERE Colombia
- Counterfeit bill-detecting workshop: This
is a continued education program offered for
the employees working at the tables, cashier’s
desk and at Turff.
team at the 2014 Bogota
International Half Marathon
- Reinforcing the turf: Seminar for the Turff
and “Hípica de Panamá” racetrack betting
area based on corporate topics and customer
service techniques.
Left: CODERE Colombia
offices
87
- Entertainment Workshop: For three days,
the employees had the chance to learn different social hosting techniques at the hand of
TVN TV actor, designer, and cartoonist Ludwik
Tapia.
- 2014 Job Promotions: CODERE Panama
closed 2014 with 130 job promotions, marking
a 195 rise over 2013. The area continuing to
show the greatest number of job promotions
was Operating Fund, totaling 29%.
URUGUAY
HRU employs over a thousand people in different tasks, trades and professions. Its HR
policy is based on respecting employee rights
and its constant concern with seeking integral
personal development on the basis of job performance.
In 2014, the Company made a leap forward in
quality by implementing the Performance Assessment for all of its employees for the pur-
88
pose of contributing the further enhancing the
skills and abilities of the people who are carrying out the different activities. In 2014, special
attention was focused on training, employing
more than 12,432 hours encompassing different areas and levels, including a Leadership
School, in which 100 people took part by way
of a two-year training program.
The Company has continued working on improving the working climate, by generating a
schedule of milestones and activities for integration, improving its communications channels and promoting the sustainable growth of
the communities surrounding it in synch with
an environmental awareness and the efficient
use of resources. In 2012, five priorities for action were set: Local development, education,
responsible, healthy gaming, youth employment and environment. All of these priorities,
integrated into the management model, Human Resources model and community outreach.
Above: CODERE Panama
“Somos uno, Somos todos”
Program
89
Compliance
CODERE´s Compliance Policy evidences our
special commitment to the laws against fraud
and money laundering, as well as to the values
of honesty and integrity in corporate business
practices and compliance with the internal code of
conduct.
CODERE´S COMPLIANCE POLICIES
CODERE always keeps in mind that it operates
in a particularly sensitive industry, such
as the gaming sector. This is a sector that
has undergone different degrees of public
perception throughout its history, shifting
from the absolute prohibition, with negative
consequences, to the highest standards
of regulation and management, through
intermediate periods of existence in a legal
vacuum.
assumed the full scope of the Compliance
Function as an independent function that
identifies, advises, warns, monitors and reports
on compliance risks in organizations, such as
the risk of receiving sanctions for legal or
regulatory violations, the risk of financial or
reputation loss due to the failure to comply with
applicable laws, regulations, codes of conduct
or standards of good practice (together “laws,
regulations and standards”).
As the industry leader, CODERE believes that
it should take on the challenge of establishing
guidelines for excellence with authorities,
suppliers and customers, including all of them
in its global strategies of corporate social
responsibility and corporate culture. These
guidelines take the form of a strict compliance
policy that integrates the highest international
standards on ethical requirements and the
prevention of money laundering.
CODERE requires itself and its partners
and suppliers complete adaptation to the
regulations of the gaming sector in each
country in which it operates, and scrupulous
respect for all financial, fiscal and labor laws,
regulations and standards in force in each area
where the Group operates.
CODERE’S COMPLIANCE POLICY
CODERE applies the 2004 Basel II Framework
as the basis for its Compliance policies as
well as all FATF Recommendations and the
international models of Best Practices and
Ethical Conduct. This way CODERE has entirely
90
The Compliance Policy evidences the special
commitment of CODERE to the laws against
fraud and money laundering, as well as to the
values of honesty and integrity in corporate
business practices and compliance with the
internal code of conduct, all of which takes
shape in the following strategic objectives:
Establish the activities and mechanisms
needed to implement a conscious culture of
compliance throughout the company as an
indispensable tool to help reach and maintain
the level of excellence that CODERE aspires
to.
Cooperate in identifying and establishing the
highest standards of ethical conduct and compliance with applicable laws in the development of CODERE’s business activities.
Achieve the proactive participation of all executives and employees in CODERE’s Compliance policies in the various activities and geographical areas in which the company operates,
setting minimum coordination mechanisms
and requirements among the various agents.
Identify, evaluate and control the main Compliance risks, defined as those which can result
in legal sanctions, material financial loss or loss
of reputation as a result of possible violations
of the laws, regulations and self-regulatory
standards of the company or of the codes of
conduct applicable to CODERE’s business activities.
SPECIFIC RISKS COVERED BY
THE CORPORATE COMPLIANCE DIVISION
Reputational Risk: Possibility of losses due to
negative publicity regarding the company and
its business practices, whether true or not, intentional or not, resulting in a potential loss of
customers or revenue or subjecting the company to prosecution.
Operational risk: The possibility of losses due
to the inappropriateness or failure of business
processes, personnel, internal systems (fraud
or internal actions), or because of external
events.
Compliance Committee
MECHANISATION
COMPLIANCE
AND REGISTRATION
DEPARTMENT
AML-RC*
ETHICAL CODE
KYC**
DIRECT MANAGEMENT
CORPORATE
DEPARTAMENTS &
BUSINESS UNITS
SPAIN
ITALY
ARGENTINA /
Compliance Oficial
URUGUAY / BRAZIL
PANAMA
MEXICO
COLOMBIA
Compliance Official
Compliance Official
Compliance Official
Compliance Official
*AML-RC: Anti-Money Laundering and Regulatory Compliance
**KYC: Know Your Customer and Third-Party Transactions
91
RESPONSIBLE GAMING | COMPLIANCE
Management
of the Compliance Policy:
COMPLIANCE
DEPARTMENT
FUNCTIONAL
ORGANIC
SENIOR
COMPLIANCE
DEPENDENCIES
COMMITTEE
MANAGEMENT
BOARD OF DIRECTOR
Compliance director
& Direct relations
COUNTRY DIRECTORS
Corporate Department
Managers
Legal Advisory
Supervisors/Country
Compliance Officials
Country Directors
COMPLIANCE DEPARTMENT AREAS OF RESPONSABILITY
- Compliance with gambling regulations in all geographic
areas in which the Group operates.
-Compliance with anti-money laundering policies.
- Internal control requirements of due diligences on
executive personnel and key managers.
92
-External control requirements of due diligence on natural
or legal persons related to CODERE.
- Institutional relations with anti-money laundering
regulators and agencies.
-Management of Ethical codes and complaints channel.
Legal risk: Possibility of losses due to sanctions, fines or being forced to pay damages
resulting from breach of rules or regulations.
Strategic risk: Possibility of losses due to the
company being disqualified by the controlling
authority to develop the relevant products or
services or the failure to adapt to changing
business conditions or requirements in the gaming sector.
IMPLEMENTATION OF CODERE’S
COMPLIANCE POLICY
In 2005, CODERE´s Board of Directors
approved the Company’s Compliance Plan,
which contains the Group´s practical rules of
conduct in this area and created a Compliance
Committee chaired by an independent director.
In 2006 the Board established the Corporate
Compliance Department and during 2014 we
continued to strengthen the processes in the
following areas of action, which coincide with
what the new Spanish law on the Prevention
of Money Laundering and the Financing of
Terrorism (Law 10/2010), the Royal Decree
304/2014 and the New Recommendations
issued in 2012 stipulate:
A. Implement and manage the International
Policies on the Prevention of Money
Laundering in CODERE, S.A.
1. Identification of recipients of awards
and monitoring of suspicious transactions
(STRs).
2. Reconciliation of reports to control
and/or gaming authorities. Contribution
on evidence on fraudulent payments or
transactions.
3. Execution of Mandatory Education and
Training Plans on the Prevention of Money
Laundering for CODERE Group employees.
4. Represent CODERE with the money
laundering prevention and gambling
authorities.
5. Update and implement the company
regulations on the Prevention of Money
Laundering in each country as well as any
as are required for the parent company of
the CODERE Group (Spanish, European and
FATF).
Ethics and Corporate Conduct, which led
in 2012 to removal of the specific local
policies.
2. Design of a complaint channel for use
by employees, customers and suppliers to
avoid reputation damage, internal fraud
or other damage to CODERE, beginning
in 2011, and implementing the corporate
standards across all geographic areas in
2012.
3. Verification of ethical conduct or conflicts
of interest arising or not from the previous
channel, elevating reports and/or proposals
to the Compliance Committee.
C. Implement and manage the Compliance
Information System required by the CODERE
Compliance Plan
1. Internal control policy and control
requirements of due diligence on executive
personnel and key managers.
2. External Third Parties Investigation (TPI)
Control Policy through prior due diligence
and control of natural and legal persons
related to CODERE, particularly providers
of gaming machines, and the movements
and operation thereof.
3. Provide management tools to other
departments or units and/or provide
specific support for monitoring and verifying
companies and individuals.
4. Prepare the required reports and accurate
information on reputational risks and/or
property damage to CODERE, reporting,
where appropriate, to the Compliance
Committee and/or Senior Management of
CODERE.
Moreover, the structures supervised by the
Compliance Committee have been enhanced
regarding the operation of local compliance
officers. This was the case in Mexico,
Colombia and Argentina, which have joined
the existing structures in Panama and Italy in
transcendentally enhancing the capabilities of
the Corporate Compliance Department in its
role of efficiently carrying out the Compliance
policies.
B. Implement and manage the Code of Ethics
and Conduct, evidencing the use of best
business and CSR practices in CODERE, S.A.
1. Entry into force in 2011 of the Code of
The implementation of the new Mexican
Law on Money Laundering Prevention´s
requirements in regard to the gaming sector
has been of great relevance for CODERE.
The Company´s dimension in the previously
mentioned country and the demanding legal
thresholds on the identification and reporting
93
of clients have required a huge technological
and human endeavor which has been
successfully accomplished since September
2013 as its starting date.
Below we have included a summary of the
activities in the Prevention of Money Laundering
(AML) and Third Parties Investigation (TPI) and
AML training of employees and executives
and control of customers and suspicious
transactions carried out in 2014, both on the
corporate level and in all business units and
subsidiaries:
Among the corporate and business units of the
various countries where the CODERE Group
operates, we have performed 4,618 Due
Diligence inquiries of various types on third
parties with whom the group has business
or contractual relations, both individuals and
legal entities.
The control and reporting of awards and
transactions to competent authorities, with
the identification and registration processes
required in each case, totalled 41,659
cases, in addition to 71 reports of suspicious
transactions. This process has been carried
out in full in all business units.
63 complaints/communications have been
addressed through the different Ethical
Channels managed by the local Compliance
Officers as well as through the Corporate
Complaints Channel, the corresponding
confidential
verifications
and
internal
investigations in the company´s business units
being performed.with the following tipology
and result:
We have performed 630 Due Diligence
inquiries on CODERE personnel. In parallel,
we have processed 1,076 direct express
acceptances of the Global Code of Ethics of
CODERE in different business units.
Mandatory AML training has been provided
to 3,466 employees. The courses were given
internally by various Compliance Officers in
Spain, Argentina, Italy, Panama, Colombia,
Uruguay and Mexico; and also online in
Argentina, Mexico and Colombia.
MANAGEMENT ACTIVITY INDICATORS 2014: ETHICAL AND CORPORATE COMPLAINTS CHANNELS
2014
SPAIN &
HEADQUARTERS
ARGENTINA
COLOMBIA
ITALY
MEXICO
PANAMA
URUGUAY
TOTAL
-
-
2
5
n/a (en curso de
definición)
9
Anonymous
-
2
Identified
8
5
-
-
36
5
n/a
49
Internal
4
3
-
-
9
10
n/a
26
External (third parties)
4
4
-
-
29
-
n/a
37
Resolved
5
7
-
-
38
10
n/a
60
In process
2
1
-
-
-
-
n/a
3
Unresolved
1
-
-
-
-
-
n/a
1
ANONYMOUS
NO SOLUTION-IN
PROCESS
EXTERNAL
44%
23%
IDENTIFIED
94
INTERNAL
56%
SOLVED
77%
95
CODERE Foundation
CODERE Foundation is a non-profit organization
that was founded in 2007, recognized and
registered in the Foundations Protectorate of the
Spanish Ministry of Education being a member of
the Spanish Association of Foundations.
The mission of the Foundation is the promotion
of and collaboration in initiatives, both national
and international, to enable the improvement
and development of public policy on gambling
and the structures upon which this industry is
based, and to promote the development of the
local communities in which CODERE operates.
CODERE Foundation has agreements with
public and private entities, encouraging
collaboration among them. It also acts as a
partner with all relevant institutions to convey
a faithful image of gaming to society and aims
to transmit the views, interests and needs of
the gaming industry with the general public,
the media and public authorities.
SEMINARS
Throughout 2014, CODERE Foundation has
organized several workshops aimed at creating
opportunities for reflection on the gaming
industry, introducing itself to the highest level
of the academic field.
In May, it took part in the First Latin
American Gaming Summit held by Casa de
America (Madrid), a meeting that brought
together gaming regulators, operators,
professionals and companies with the aim of
sharing experiences and creating an analysis
environment, from an economic, political and
social point of view, between Spain and Latin
America.
CODERE FOUNDATION BOARD
Mr. José Antonio Martínez Sampedro,
President
Mr. José Ignacio Cases Méndez, Vice President
Ms. Beatrice Rangel, Member
Mr. Juan José Zornoza Pérez, Member
Mr. Germán Gusano Serrano, Executive
Director and Secretary to the Board
Through the roundtable titled: “Responsible
Gaming & Advertising”, which addressed
various issues such as best practices in
corporate responsibility among gaming
companies or control and self-regulation
mechanisms, among others, Mr.José Ignacio
Cases, Professor Emeritus of Political Science
and Governance at the Carlos III University
96
Madrid and vice president of CODERE
Foundation, said there was still a long way to
ensure a real responsible gaming.
On December 11th, CODERE Foundation took
part in the Expo 2014 ANESAR Congress,
held at IFEMA (Madrid) on the official launch
of the 3rd edition of “Anuario del Juego en
España”2013/14 (Spanish Gaming Yearbook
2013/14), reflecting the main updates as for
the socio-economic data within the gaming
industry.
This publication is an important source of
information for the gaming sector, governments
and the general public, as it collects, sorts and
analyzes all available information on gaming,
tidying rigorously the existing information in
this area.
Insights of Gaming in Spain 2014”, setting out
details on how the economic crisis promoted
a more rational gaming expenditure among
Spanish citizens.
In December, CODERE Foundation launched
the 3rd edition of “Anuario del juego en España”
2013/14 (Spanish Gaming Yearbook 2013/14)
together with IPOLGOB. This publication
is an important benchmark for the Spanish
gaming industry, reflecting and analyzing all
information related to the gaming sector which
represents 2.5% GDP and provides around
200,000 direct and indirect jobs. It analyzes
the evolution of the Spanish gaming industry
from an economic and social perspective,
segmented by autonomous communities and
provinces since 2008.
In order to foster and promote research,
analysis, transparency and legal certainty
within the gaming sector, CODERE Foundation
collaborates with renowned specialists to
release leading publications for the gaming
industry. Among the new publications
released in 2014 the following ones are to be
highlighted:
In July, along with the Institute of Politics
and Governance (IPOLGOB) at the Carlos
III University Madrid, CODERE Foundation
presented the Fifth Report on the Social
In July 2012, CODERE Foundation sponsored
the workshop “Homo Ludens: The Public
Dimension of Gaming” within the Political
Science World Congress held at Complutense
University in Madrid. In 2014 a publication
with the same title gathered a collection of
the contributions made during that Congress.
This book analyzes, from an academic point of
view, the gaming sector and the importance
of its development in the western democratic
society. It also addresses the importance of
globalization in the gaming sector through
technology, its impact on this field and the
need to formulate new public policies to
control this new economic activity in the
97
RESPONSIBLE GAMING | CODERE FOUNDATION
PUBLICATIONS
Below: First Latin American
Gaming Summit (Madrid)
future. All this, it was made possible due to
the contributions of various international
conferences and experts from Mexico, USA,
Argentina, England or Spain who attended the
aforementioned event.
It also attended the 11th Spanish Congress
of Political Science and Administration titled
“Politics in uncertain times” held by the
Spanish Association of Political Science and
Public Administration (AECPA) at the Pablo
de Olavide University in Sevilla. CODERE
Foundation
sponsored
the
workshop
“Entertainment policies: gambling” debating
on issues related to the Gaming industry
thereafter compiled in a book titled “Six
issues on Gambling. Business, Ethics and
Corruption” published in 2014 by the
Thomson Reuters Aranzadi publishing house.
This book addresses several issues, such as the
moral and ethical behavior of society against
gambling, the assessment of potential damage
that it can cause or actions aimed at achieving
certain favorable regulations by the companies
through lobbies.
SOCIAL ACTIONS
In order to support and contribute to the
development of the society in the educational
field, CODERE Foundation has promoted
several initiatives in some of the countries
where it operates its business, among which
we would like to highlight the Laffit Pincay Jr.
Jockeys Training Academy.
It was launched in Panama City on March, 2009
as a training center for jockeys approved by
the Panamanian Ministry of Education, located
inside the Presidente Remon racetrack and
operated by CODERE Group. This center
aims to elevate the horse racing industry by
improving the standard of training and learning
process for its future graduates. On December
2nd, 2014 a new class of 13 jockeys graduated
from this academy upon successful completion
of their academic and sports subjects, thus
forming the 5th jockeys graduated group since
the opening of this academy.
The Foundation also maintains its collaboration
with the quarterly publication “Revista de
Derecho de Deporte y Entretenimiento”
(Journal of Sports and Entertainment Law),
edited by Aranzadi, by providing material on
aspects related to gambling legislation.
98
Above: Graduation Event
2014 (Panama).
Right: Launching of the
Fifth “Report on the Social
Insights of Gaming in Spain
2014” (Madrid).
99
RESPONSIBLE GAMING | CODERE FOUNDATION
CODERE and the society
CODERE Group expresses its firm commitment to the
Principles of Corporate Social Responsibility as an integrating
framework for its policies and actions with all the stakeholders
with whom it interacts. The Company also seeks to identify
local needs and areas where its contribution could be valuable
especially in those countries where it operates and implements
specific programs to help these communities.
ARGENTINA
Responsible gaming program
During 2014, CODERE Argentina further
developed its Responsible Gaming Program,
counting with 126 Responsible Gaming
Counselors in its gaming halls. Throughout the
year, 4,740 leaflets were distributed to inform
on this matter.
In addition, the Company further promoted
the Unified Self-Exclusion Procedure. An
instructive document that aims to promote
Responsible Gaming and to help complete
the self-exclusion procedure was developed.
Such documents were distributed in all
gaming halls and public telephone booths
exclusively connected with the toll-free line
(0800-444-4000) belonging to the Provincial
Institute of Lotteries and Casinos (IPLyC). The
training of Counselors for the unification of
this procedure and the installation of exclusive
phone lines are all voluntary initiatives being
implemented through CODERE Corporate
Social Responsibility Plan.
100
Community and CSR internal management
- “CODERE Green” Program: This program
includes all the initiatives designed for the
care and protection of the environment: Paper
recycling (during 2014, 29,770 kilos of paper
and cardboard were collected); Vegetal oil
recycling (16,567 liters of vegetal oil were
collected from all the gaming halls); Plastic
recycling (60 kilos of plastic lids were collected
and the resulting benefits were sent to San
Justo Children Hospital).
- Donations: CODERE Argentina supports
various social movements in the municipalities
where it operates its business:
•
•
1,250 school kits were donated to MTD
Frente Popular in Lanus; and 3 first-aid
kits, 250 school kits, cleaning products and
furniture to the Education and Community
Dining Area Panza Llena (San Justo).
600 school kits, 6 blood pressure monitors
and 6 scales were donated in order to equip
the following movements: Movimiento
Popular La Dignidad, Movimiento 29 de
•
•
•
mayo, MTR 12 de abril, MTD Aníbal Verón
de Lanús.
On Children´s Day, the Company donated
250 alfajores and 1,000 milk bricks for
Jóvenes en Progreso and Obreros de la
Libertad.
The Primary school nr.35 (Morón) was
equipped with 10 stoves.
On Christmas, food and Christmas
products were donated to several
charitable organizations in La Plata, Lanús,
and La Matanza.
The 4th Edition Hospital Narciso López de
Lanus Healthy Marathon: On September, 28th
Hospital Narciso López in Lanús, in order to
celebrate its new anniversary, held the fourth
edition of Healthy Marathon, encouraging
healthy living habits.
Economic cooperation with R21: In 2014,
the Company cooperated economically with
R21, foundation created by Charly Alberti in
2010 aiming at understanding the depth of the
climate crisis and challenges in Latin America.
- Solidary Event in San Martín: The prima
ballerina of the London Royal Ballet, Marianela
Núñez, returned to her hometown to offer a
solidary performance for the benefit of José
León Suárez’ brothers, Gabriel and Santiago
Zabala, who have spinal muscle atrophy for
the purpose of raising funds for travelling to
the Wu Steam Cels Medical Hospital in Beijing,
China and undergo the treatment needed for
their recovery. The event, with free admission
for all, was held on August 16th at Villa
Ballester’s German Choral Society and backed
by funding from CODERE.
- 2014 Municipality of San Miguel’s Patron
Saint’s Day Festival Celebration: On Saturday,
September 20th, the San Miguel Patron Saint’s
Day Festival was celebrated, including youth
olympic games and a video of the Olympic
torch-relay
ceremony.
The
celebration
continued with a 9 km and a1.2 km marathon,
musical performances and a ceremony at the
San Miguel cathedral.
MEXICO
CODERE AND THE SOCIETY
Corporate responsability activities
Local integration programs
- Altruistic Yak: On June 25th, at the Yak
Polanco Casino facilities, the volunteer group
from the Spanish Hospital held an Altruistic
Yak to raise funds for elderly people requiring
hospital care.
- 132nd Anniversary of “La Plata” City: On
November 19th, the City of La Plata celebrated
its 132nd anniversary, and the Municipality held
a number of events throughout the week-long
celebration supported by CODERE:
- International Children’s Day in “La
Matanza”: On August 17th, CODERE staged
a musical circus performance in celebration
of International Children’s Day along with the
children of “La Matanza” on the campus of the
National University of La Matanza, with free
admission for everybody.
-Children’s Play Center at the Childhood
Cultural Center: In July, CODERE made a
donation for the “Casa Reforma” in the city of
Guadalajara, Jalisco. This building, which is an
architectural treasure, is being rehabilitated for
the purpose of giving this building, which was
such a center of activity in the 19th century,
- Economic cooperation with the Banfield
Club Kindergarten, to further enhance
education.
- Anniversary of the Municipality of San
Martín: To celebrate the 158th anniversary of
this city, a grand free recital was organized in
Yrigoyen Park, at which the pop Singer Axel
performed. This event, in which thousands of
local residents took part, was also attended by
Mayor Gabriel Katopodis.
101
RESPONSIBLE GAMING | CODERE AND THE SOCIETY
Below: Altruistic Yak
back to the city. Thanks to the contribution
made by CODERE, a children’s play center will
be installed and will serve as an educational
space for small children and make it possible
to get them off the streets and keep them
away from drug addiction.
-Donations: As one of the activities of CODERE
Mexico, a Company committed to corporate
responsibility programs and in fulfillment of its
corporate values, donations were made in 2014
in the amount of $2,082,765.00 (Two million,
eighty-two thousand, seven hundred and sixtyfive Mexican pesos). These donations were
given to important social welfare institutions
such as the Mexican System for Integral Family
Development of Hermosillo, Boca del Río and
the City of Juárez, Rosarito Red Cross and the
Puppet Theater Arts Association, which used
the funds to create the Childhood Cultural
Center.
Above: Childhood Cultural
Center Children’s Play
ITALY
Responsible gaming programs
In June 2014, CODERE started up a project for
working with FeDerSerD (Italian Federation of
Operators of the Dependence Departments
and Services), in the dissemination of the
Responsible Gaming culture. This project is
for the purpose of improving the quality of
the services and the interventions in the field
of pathological gambling dependence and is
aimed at supporting the GiocaResponsabile
(Gamble Responsibly) service.
GiocaResponsabile is the first free hotline
in the country, which, respecting the caller’s
identity not being revealed provides assistance
and support for gamblers and their families: a
service providing information on the assisted
treatment and care services to which people
having problems can gain access thanks to
the help of expert therapists. This service can
be accessed by means of a toll-free number
800.92121, available Mondays to Saturdays
from 9:00 a.m. to 10 p.m. or by visiting the
website www.giocaresponsabile.it, which
provides information for dealing with the
excesses of gambling and a list of services
for assisting problem gamblers. Thanks to
this assisted online treatment service, free
support is being provided for the excesses of
gambling.
102
SPAIN
Solidarity programs
CODERE got a community help drive under
way at Christmas in favor of the Spanish Red
Cross called “Solidarios 2014”. An initiative
promoted through the corporate Human
Resources Department, which collected
food, clothing and toys at the workplaces in
Alcobendas and Getafe in Madrid to help with
the basic needs of those hit hardest by the
economic crisis.
In all, more than 200 kilos of staple food
items, 30 kilos of clothing and more than 150
toys – in perfect condition – for the youngest
children were collected for the purpose of
guaranteeing children’s right to play among
the most vulnerable within the 0-17 age range.
On December 12th, Red Cross volunteers
collected the donation at CODERE.
Left: CODERE
Brazil“BrinqueDOExemplo”
Project co-workers
BRAZIL
Solidarity programs
“Cavalo
Amigo”
Equine-Assisted
Therapy: As of 2009, CODERE Brazil has
been working together with the Center
“Cavalo Amigo”, an organization which has
a team of psychologists, speech and hearing
therapists, physical therapists, educationalists
and physical education specialists who help
children and adolescents in need of special
care as part of the Corporate Responsibility
Program. CODERE took part in the equineassisted therapy program for the development
of mentally challenged children by helping
two small children in the City of Porto Alegre
(Rio Grande do Sul). In 2014, the investment
totaled R$ 23,520.00.
- “Galope
Solidário”[Solidary
Ride”]:
CODERE Brazil assists the “Casa do Menino
Jesus de Praga” institution with the donation
of resources which come from the customers
who request Racing forms. Said institution has
a ream of 130 people among employees and
volunteers from different professions, and has
the objective of helping Young children and
adolescents who have severe brain injuries or
permanent physical disabilities. In 2014, the
donation amounted to R$ 13,339.15.
- “Turff Ação Social – Solidary Racing”:
Since 2010, CODERE Brazil has been helping
the ABBR (Associação Brasileira Beneficente
de Reabilitação) in Rio de Janeiro through
the donation of resources coming from the
customers who contribute with the project
on requesting racing forms. This donation is
devoted to purchasing wheelchairs donated
for people in the institution. In 2014, the
donations totaled R$ 19.672,83, with which 58
wheelchairs were purchased. Since the start of
this project, many people have been able to
have the benefit of the 270 wheelchairs from
this program.
to three institutions, these toys having been
handed out among 400 children. This campaign
served to promote corporate responsibility
and teamwork.
COLOMBIA
Committed to corporate responsibility
CODERE Colombia is continuing its Corporate
Responsibility program which first started
in 2009, aimed at promoting people with
disabilities and victims of violence being
included in the workforce. In 2014, CODERE
backed 22 people who are currently taking
active part in the selection processes for taking
on new positions in the Group. For example,
Mauricio Lancheros joined the organization in
2011 as a security assistant and took over the
chief of security position in February.
PANAMA
Solidarity and health programs
- “BrinqueDOExemplo”: Toward the end
of the year, CODERE Brazil delivered toys
collected by the employees and customers
- “Dona Sangre-Dona Feliz” [Donate Blood,
Donate it Happily]: 58 employees from
103
different business units (CrowN El Panamá,
Fiesta Soloy, Presidente Remón Racetrack and
Administration) donated blood for the Saint
Thomas Hospital blood bank.
Left: Program of donations
to the Nutre Hogar “Children First” fundraising effort
- CODERE Panama Health Fair: In February,
CODERE Panama held its traditional Health
Fair at the Racetrack facilities for its employees
(blood pressure checks, blood sugar checks,
gyn exams, etc.
- Solidarity and Teamwork: The CODERE
maintenance department improved the quality
of life of two employees by way of remodeling
their homes.
Montevideo Ombudsman Institution and the
local authorities, discussing the problems of
cleanliness, lighting and safety in that area.
- Donation to “Nutre Hogar” [“Nuture
Home”]: CODERE fulfilled its commitment to
Panamanian childhood by means of the annual
“Children First” fundraiser organized by the
“Nutre Hogar” Foundation. The Company
donated B/. 3,000,00. Different business units
also donated for the children of the country’s
indigenous communities.
Apart from the above, the Racetracks are
managed as “open-door” spaces and have a
major investment devoted to the development
of their social and services areas. For example,
the “Las Piedras” Racetrack has a Polyclinic, a
Childhood and Family Care Center (CAIF), a
Cultural Center and Training Programs (Labor
University of Uruguay).
- Relay race for the benefit of children with
leukemia or cancer: CODERE showed its
support for children with leukemia or cancer by
way of the “2014 Relay Race for Life”, by way
of which they took part in solidary marathons
along with another 140 companies in Panama.
Training and employment
- “Sharing Love at Christmas”: Thanks to
the social commitment of the employees and
the “CODERE lending you a hand” group
of volunteers, more than 500 children from
the Hato Juli communities in the Province of
Chiriquí and in Bonga de Capira had their
dreams come true on enjoying a Christmas
party. The children were visited by Santa Claus
and received many gifts, sweets, piñatas and a
Christmas lunch.
URUGUAY
Local integration
- Local community development: Through
HRU, CODERE is taking part, as a relevant
economic and social player, in the communities
where it operates and participates in different
community organizations, such as: local
resident forums, networks, local planning and
coordination spaces, contributing to improving
the population’s living conditions and their
local development. In 2014, it took part in the
local resident forum in conjunction with the
104
- Education: The Company is committed
to education and is working in Uruguay in
conjunction with elementary and secondary
schools, early childhood care centers and
institutions for the support of children with
different abilities located near its operation.
In 2014, it carried out a major art-education
project on the basis of an agreement with
School 186 and Kindergarten 233 for carrying
of art activities and training with 570 children.
- Youth Employment: Through the HRU,
CODERE in Uruguay is placing priority on
youth employment and is working actively in
the professionalization and formalization of
the horseracing activity.
- School for Jockeys and Grooms: In 2014, the
Company created the first School for Jockeys
and Grooms combined, the first generation
being comprised of 20 students with an
annual classroom-practical training plan and 8
live-in students residing at the “Las Piedras”
Racetrack facilities.
The Basic Vocational Horseracing Training
was also continued with 35 students, and the
Auxiliary Stable-Keeping Course, now in its
third edition with 30 students by way of an
agreement signed between HRU and UTU,
“Young People Online” and the Ministry
of Social Development’s Public Center for
Employment.
Responsible gambling
NGO, it recycles paper from the offices,
when it subsequently turns over to “Obra
Luis Morquio” School No. 205 to be used as
educational materials.
- Healthy, Responsible Gambling: HRU lays
out a healthy, responsible gambling promotion
strategy, generating the mechanisms possible
for reducing the addictive disorders that
gambling can cause.
Enviroment
The Company is carrying out energy efficiency,
efficient water use and waste management
plans. On the subject of energy, it generates
its own electric power for lighting the Maroñas
Racecourse track, is changing the Official
Maroñas Grandstand over to the LED system
(with an estimated 800% savings) and is
promoting intelligent switch-on. Regarding
water, it uses its own sources for cleaning,
watering, kitchens and showers. For waste
treatment, it responsibly manages solid waste.
Similarly, in collaboration with the “Repapel”
105
Above: “CODERE is lending
you a hand” volunteers at
Christmas activities
7
Auditor´s report
108
109
AUDITOR’S REPORT | CODERE S.A AND SUBSIDIARIES
CODERE, S.A.
and subsidiaries
CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2014 AND 2013
(THOUSANDS OF EUROS)
NON-CURRENT ASSETS
1,204,579
1,302,315
Intangible assets
7
471,098
511,178
Property, Plant and equipment
8
368,665
430,405
Investment properties
8
70,451
72,229
10
207,561
207,489
12,415
11,666
25,716
22,600
18,091
17,213
- Investments held to maturity
6,184
5,387
- Other financial assets
1,441
-
48,673
46,748
334,730
349,590
Goodwill
Investments equity method
Non-current financial assets
11
- Non-current loans
Deferred tax assets
12
CURRENT ASSETS
Inventories
14
10,441
11,800
Accounts receivable
15
181,526
178,303
30,585
24,394
- Trade and other receivables
- Current tax assets
4,964
9,824
- Sundry receivables
34,140
40,811
111,837
103,274
35,988
41,668
- Tax receivables accrued
Financial Assets
16
- Short-term investment securities
- Other loans and investments
Other current assets
Cash and cash equivalents
24
TOTAL ASSETS
The accompanying notes are an integral part of these consolidated financial statements
110
106
1,218
35,882
40,450
20,103
15,423
86,672
102,396
1,539,309
1,651,905
CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2014 AND 2013
SHAREHOLDERS’ EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
NOTE
31.12.14
31.12.13
17
(449,130)
(260,442)
Share capital
Share Premium
Legal reserve and Retained earnings (prior year losses)
Revaluation reserves
Translation differences
Profit/(Loss) for the year attributable to equity holders of the parent
Non- controlling interest
17
TOTAL EQUITY
Non-current liabilities
Deferred revenues
11,007
11,007
231,280
231,280
(350,750)
(173,316)
4,060
4,214
(171,722)
(160,011)
(173,005)
(173,616)
17,280
56,877
(431,850)
(203,565)
296,852
1,288,018
17
75
Non-current Provisions
18
33,465
48,342
Non-current payables
19
147,525
1,126,508
89,299
102,739
-
966,624
- Bank borrowings
- Bond issues
- Other payables
Deferred tax liabilities
12
Current liabilities
58,226
57,145
115,845
113,093
1,674,307
567,452
Provisions and others
18
10,575
11,016
Bank borrowings
19
160,976
119,138
Bonds and other marketable securities
Other non-trade payables
19
Trade payables
Liabilities for current-year corporate income tax
19
TOTAL EQUITY AND LIABILITIES
111
1,141,915
41,453
209,603
246,607
119,601
128,006
31,637
21,232
1,539,309
1,651,905
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 AND 2013
OPERATING REVENUES
NOTE
31.12.14
31.12.13
23
1,385,624
1,520,776
1,377,175
1,513,355
- Revenue
- Other income
OPERATING EXPENSES
8,449
7,421
23
(1,361,500)
(1,531,535)
(45,742)
(51,875)
23.d
(240,130)
(300,108)
(125,514)
(149,672)
- Consumables used and other external expense
- Empoloyee benefit expense
- Depreciation and amortization
- Change in trade provisions
(1,993)
(2,116)
- Other operating expenses
23.c
(936,255)
(970,428)
- Asset impairment charges
7,8,10,13
(11,866)
(57,336)
6
(3,347)
(6,489)
20,777
(17,248)
3,331
(148,174)
(45,899)
5,067
(141,312)
(8,755)
(190,742)
(145,000)
(169,965)
(162,248)
(40,885)
(45,359)
2,967
2,334
(207,883)
(205,273)
Gains/(loss) on derecognition/disposal of assets
CONSOLIDATED OPERATING PROFIT/(LOSS)
Finance income
Finance costs
Net foreign exchange gains/(losses)
CONSOLIDATED NET FINANCIAL INCOME/(EXPENSE)
23g
CONSOLIDATED INCOME/(LOSS) BEFORE TAXES
Income tax expense
21
RESULTS COMPANIES ACCOUNTED BY EQUITY METHOD
CONSOLIDAETED LOSS FOR THE YEAR
Attributable to non controlling interests
Attributable to owners of the parent
Basic and diluted earnings per share (in euro)
Basic and diluted earnings per share from continuing operations attributable to the owners of the parent company
(in euro)
112
23f
23f
(34,878)
(31,657)
(173,005)
(173,616)
(3,80)
(3,16)
(3,74)
(3,16)
CONSOLIDATE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARS 2014 AND 2013 (INCOME AND EXPENSED RECOGNISED IN
EQUITY (THOUSANDS OF EUROS)
NOTE
31.12.14
31.12.13
PROFIT/(LOSS) FOR THE YEAR
(207,883)
(205,273)
Currency translation differences
(9,441)
(73,608)
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX
(9,441)
(73,608)
(217,324)
(278,881)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
Attributable to owners of the parent company
Attributable to non-controlling interests
(32,608)
(34,400)
(184,716)
(244,481)
EQUITY ATTRIBUTABLE TO
OWNERS OF THE PARENT
COMPANY
EQUITY ATTRIBUTABLE TO NON
CONTROLLING INTERESTS
231,280
(176,308)
2,992
4,214
(160,011)
(173,616)
(260,442)
56,877
(203,565)
Profit/(loss) for the year
-
-
-
-
-
-
(173,005)
(173,005)
(34,878)
(207,883)
Other comprehensive income for the year
-
-
-
-
-
(11,711)
-
(11,711)
2,270
(9,441)
Total Consolidate Comprehensive income
-
-
-
-
-
(11,711)
(173,005)
(184,716)
(32,608)
(217,324)
Reversal of Revaluation Reserve
-
-
154
-
(154)
-
-
-
-
-
Changes in consolidation scope and business combinations
-
-
(3,833)
-
-
-
-
(3,833)
(1,841)
(5,674)
Reserves for treasury shares
-
-
86
-
-
-
-
86
-
86
Provision for options
-
-
(113)
-
-
-
-
(113)
-
(113)
Gain/(loss) on treasury shares
-
-
(112)
-
-
-
-
(112)
-
(112)
Dividends *
-
-
2,023
(2,023)
-
-
-
-
(5,148)
(5,148)
Transfer of results to retained earnings (prior-year losses)
-
-
(175,950)
2,334
-
-
173,616
-
-
-
Total changes in equity
-
-
(177,745)
311
(154)
-
173,616
(3,972)
(6,989)
(10,961)
Balance at 31.12.14
11,007
231,280
(354,053)
3,303
4,060
(171,722)
(173,005)
(449,130)
17,280
(431,850)
REVALUATION RESERVE
SHARE CAPITAL
(*) Correspond to dividends distributed to minority interests of spanish subsidiaries
113
TOTAL EQUITY
PROFIT/(LOSS) ATTRIBUTABLE
TO OWNERS OF THE PARENT
COMPANY
11,007
EQUITY METHOD RESERVE
Balance at December 31, 2013
SHARE PREMIUM
TRANSLATION DIFFERENCES
LEGAL RESERVE AND RETAINED
EARNINGS (PRIOR-YEAR LOSSES)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2014
TOTAL EQUITY
231,280
(25,368)
-
4,399
(89,146)
(146,941)
(14,769)
95,674
80,905
NIIF 11
-
-
(2,091)
2,091
-
-
-
-
-
-
Balance at January 1, 2013
11,007
231,280
(27,459)
2,091
4,399
(89,146)
(146,941)
(14,769)
95,674
80,905
Profit / (Loss) for the year
-
-
-
-
-
-
(173,616)
(173,616)
(31,657)
(205,273)
Other comprehensive income for the year
-
-
-
-
-
(70,865)
-
(70,865)
(2,743)
(73,608)
Total Comprehensive income
-
-
-
-
-
(70,865)
(173,616)
(244,481)
(34,400)
(278,881)
Reversal of Revaluation Reserve
-
-
185
-
(185)
-
-
-
-
-
- Scope changes
-
-
-
-
-
-
-
-
1,944
1,944
- Business combinations
EQUITY ATTRIBUTABLE TO
OWNERS OF THE PARENT
COMPANY
TRANSLATION DIFFERENCES
REVALUATION RESERVE
SHARE CAPITAL
PROFIT/(LOSS) ATTRIBUTABLE
TO OWNERS OF THE PARENT
COMPANY
11,007
EQUITY METHOD RESERVE
Balance at December 31, 2012
SHARE PREMIUM
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
LEGAL RESERVE AND RETAINED
EARNINGS (PRIOR-YEAR LOSSES)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2013
Changes in consolidation scope and business combinatios
-
-
-
-
-
-
-
-
-
-
Reserves for treasury shares
-
-
232
-
-
-
-
232
-
232
Provision for options
-
-
(1,236)
-
-
-
-
(1,236)
-
(1,236)
Gain/(loss) on treasury shares
-
-
(188)
-
-
-
-
(188)
-
(188)
Dividends *
-
-
1,630
(1,630)
-
-
-
-
(6,341)
(6,341)
Transfer to retained earnings (prior-year losses)
-
-
(149,472)
2,531
-
-
146,941
-
-
-
Total changes in equity
-
-
(148,849)
901
(185)
-
146,941
(1,192)
(4,397)
(5,589)
Balance at 31.12.13
11,007
231,280
(176,308)
2,992
4,214
(160,011)
(173,616)
(260,442)
56,877
(203.565)
(*) Correspond to dividends distributed to minority interests of spanish subsidiaries
114
CONSOLIDATED CASH FLOW STATEMENT
NOTE
Consolidated profit/(loss) before income tax
Net financial income/(expense)
Operating profit/(loss)
Expenses that do not represent cash outlays
- Depreciation and amortization
- Asset impairment
- Other operating expenses
Income that does not represent an inflow of cash
Changes in working capital
- Inventories
- Accounts receivable
- Payables
- Other
Income tax paid
NET CASH GENERATED FROM OPERATING ACTIVITIES
Purchases of property, plant and equipment and intangible assets
Proceeds from purchase of fixed assets
31.12.14
31.12.13
(169,965)
(162,247)
190,742
145,000
20,777
(17,247)
146,985
223,100
125,514
149,672
11,866
57,336
9,605
16,092
(2,392)
(1,121)
(39,669)
(6,257)
1,033
567
(2,010)
(8,020)
(39,591)
(9,014)
899
10,210
(32,278)
(39,009)
93,423
159,466
(83,641)
(112,614)
6,679
207
(21,155)
(23,057)
Repayments received on non-current loans
21,011
24,336
Amounts paid on investments
(2,252)
(2,822)
Payments on non-current loans
Disinvestment
(332)
-
Repayment of dividends
2,024
1,630
Payments of other financial assets
Proceeds from other financial assets
Collection of interest
CASH FLOW FROM INVESTING ACTIVITIES
(9,559)
-
-
24,634
1,441
1,930
(85,784)
(85,756)
Bonds issues
Drawings on Codere senior debt
35,000
76,561
Net change in borrowings
35,000
76,561
- Proceeds from bank borrowings
1,051
21,183
- Repayment of bank borrrowings
(11,989)
(41,644)
(10,938)
(20,461)
Net change in bank borrowings
Dividends paid
- Payments on other financial liabilities
- Repayments on other financial liabilities
Net change in other financial liabilities
Other cash flows due to impact of exchange rates on receipts payments
- Acquisition of own equity instruments
- Disposal of own equity instruments
(4,656)
(5.877)
-
(10,622)
2,626
8,509
2,626
(2,113)
(10,599)
(9,751)
(108)
(539)
102
413
(6)
(126)
Payment of interest
(31,197)
(83,640)
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
(19,770)
(45,407)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
(12,131)
28,303
102,396
82,430
Net investment in treasury shares
Reconciliation
Cash and cash equivalents at beginning of the year
Effect of exchange rate fluctuations on cash and cash equivalents
(3,593)
(8,337)
Cash and cash equivalents at the end of the year
86,672
102,396
(12,131)
28,303
NET VARIATION IN CASH POSITION
115
Dirección de Marketing
y Comunicación
Corporativa CODERE
Avda. de Bruselas,26
28108. Alcobendas. Madrid. España
Tfo.: +34 913 542 826
[email protected]
www.codere.com
www.codere.es
M-17928-2015

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