Annual Report 2014 - Österreichische Lotterien
Transcription
Annual Report 2014 - Österreichische Lotterien
Annual Report 2014 1 The Company‘s Key Figures 2012 2013 2014 2,955.32 3,049.11 3,150.98 609.59 572.91 586.38 8.47 10.02 9.06 340.19 322.51 339.98 Bingo 10.53 10.18 10.07 ToiToiToi 17.14 18.37 18.77 Zahlenlotto 1–90 4.03 4.00 4.06 Sales in million EUR Total thereof: Lotto “6 aus 45” Toto and Torwette EuroMillions Joker 187.45 181.62 182.93 Rubbellos 122.30 119.38 127.73 Brieflos 24.65 24.93 22.99 Klassenlotterie 30.26 32.38 31.35 1,137.68 1,197.62 1,179.38 4.84 3.97 3.33 458.20 551.21 634.96 454.51 433.83 447.02 Total 440.44 422.31 434.40 Share capital in million EUR 110.00 110.00 110.00 win2day (incl. Keno) win2day.at Poker WINWIN (Video Lottery Terminals) Tax payments in million EUR Total (Game-related taxes, income tax and other duties) thereof game-related taxes in million EUR Profit on ordinary activities in million EUR 62.66 50.10 50.86 Annual income in million EUR 48.87 38.97 35.88 Net earnings in million EUR 43.01 40.00 40.00 Funding of sports in million EUR 80.00 80.00 80.00 2,186.37 2,305.17 2,388.55 507 532 532 Total prizes paid out in million EUR Employees* * Equivalents of full-time employees, annual average Good luck – It’s Our Job Sustainable success in the gaming industry depends in large parts on the degree of commitment of a company’s employees. Austrian Lotteries is very lucky to have found people, who show great enthusiasm and commitment to their work. There are various different positions and jobs at the company. Only the entirety of these committed people makes it possible for our customers to buy scratch-off tickets and play Lotto at our retail outlets. The company also makes sure that its employees love working at Austrian Lotteries – be it by implementing measures to enhance the compatibility of job and family, or by offering an award-winning apprenticeship programme. In the present annual report, you will read all about the company’s successful business year 2014. Further, we will show you eight different job profiles. These profiles are wrapped in a puzzle in which the employees themselves present and explain their position. Solve the puzzle on the double pages and learn about the most important ingredient in our good luck and what matters most in a successful company. We wish you the best of luck! Board Member Bettina Glatz-Kremsner and Chairman of the Board Karl Stoss together with the apprentices of Austrian Lotteries areproud of the first place in the „Place to Perform“ ranking that surveyed the offer of apprenticeship programmes in Austria. 1 Mission Statement of the Company Responsible Innovative Based on Partnership 2 Österreichische Lotterien Ges.m.b.H. (hereinafter referred to as Austrian Lotteries) is an internationally recognised gaming enterprise that is aware of its responsibilities and acts in an innovative and partner-oriented manner. We offer a broad range of highest quality lottery games to adults interested in gaming. “Gaming with Responsibility” is the basis of all of our activities. This approach reflected in our demeanour towards all stakeholders is practised by the management as well as by our entire staff. Our business model is distinguished by our power of innovation. We develop and employ state-of-the-art technology in order to guarantee optimum security in gaming operations. We primarily owe our pioneering role to our highly motivated and performance-oriented staff, who form an important pillar of our sustained success. As a modern company, we stand for an attractive working environment that promotes open communication as well as an efficient work-family balance. Our efforts are focused on the confidence and trust placed in our enterprise by the customers and by the licensor. We combine regulatory responsibility with entrepreneurial commitment and embody these core principles credibly. Further, our work is continuously validated by our economic success. Our sound financial strength is the foundation of our company. We consider ourselves to be and act as good citizens and support institutions and projects that represent the interests of Austria and its population. Based on the license granted to us, we aim to offer the complete range of our products on a nationwide basis. We work closely and responsibly with our retail partners and strive to provide the best possible service to our customers. We place exceptional value on compliance with our “Responsible Gaming” principles. Table of Contents U2 The Company’s Key Figures 1 Good Luck - It’s Our Job 2 Mission Statement of the Company 4 Interview with the Managing Board regarding the Financial Year 2014 8 The Company 8 9 10 11 12 14 Organisational Chart of the Group Shareholders and Bodies Organisation of the Company Report of the Supervisory Board Framework Conditions Management Systems 20 New Games in 2014 30 30 31 31 31 32 36 37 39 40 Joker ToiToiToi Klassenlotterie (Austrian Class Lottery) Rubbellos (scratch-off tickets) Brieflos (break-open tickets) win2day WINWIN – Video Lottery Terminals Österreichische Sportwetten Gesellschaft m.b.H. Russisch Österreichische Lotterien Holding Gesellschaft m.b.H. Albanisch Österreichische Lotterien Holding Gesellschaft m.b.H. 44 The Financial Year 2014 44 45 47 52 53 54 60 62 64 66 67 Economic Framework Conditions Development of Sales and Earnings Responsible Gaming Corporate Social Responsibility EUR 1.2 billion for Sports Sponsorship Security and Safety Employees Sales & Distribution Developments Future Prospects 70 Financial Statements 2014 24 The Year of Millionaires 28 The Gaming Portfolio 29 Lotto “6 aus 45” (“6 out of 45”) 29 Toto and Torwette (football pool and correct score bet) 29 EuroMillions 29 Bingo 30 Zahlenlotto 1–90 (Digit Lotto 1-90) 70 72 74 76 Income Statement for the Business Year 2014 Balance Sheet as at 31 December 2014 Assets Analysis for the Business Year 2014 Notes to the Financial Statements 2014 84 Our Solution U3 Imprint 3 Interview with the Managing Board regarding the Financial Year 2014 The Managing Board of Austrian Lotteries on tentative forecasts, new records and the extra bit of luck for the hard worker in times of great challenges. cent as compared to 2013. This development can be traced back to the highly successful launch of new products in this area. Mr Chairman, 2014 has again significantly exceeded the sales record of the previous year. Has Austrian Lotteries lately gained its own private lucky star? Bettina Glatz-Kremsner Our employees realised various innovations and gaming trends during the past year and also promoted further product development. This is best shown using the examples of the introduction of the “TeamTipp” for Lotto, Toto and EuroMillions (where you can pick your numbers in a team, similar to a lottery syndicate) and the “Anteilsschein” for Lotto and EuroMillions (which allows customers to buy certain shares of complete lottery tickets). These new options have provided a positive impulse for the classic games and we were thus able to respond to customer expectations. With the “TeamTipp”, customers have the possibility to handle private lottery syndicates with family and friends in a comfortable and uncomplicated manner. The “Anteilsschein” is also a form of a lottery syndicate. However, it is directly provided by Austrian Lotteries and offers our customers the benefit of transparency and no minimum period of participation. Karl Stoss Even though the term “luck” is of great significance to our field of business and always plays a large part in the development of jackpots and Europots, it still requires a lot of effort to achieve sales as high as in 2014. The success of a company does not happen by accident, it is the consequence of efficient and constructive team work. How did we achieve this repeated sales record? Karl Stoss There are many factors that contributed to the great performance of 2014. Here, I have to point out the positive development of WINWIN, the Video Lottery Terminals. Their sales have increased by more than 15 per cent, seeing that all outlets showed a positive upwards trend. Moreover, nearly all of our draw-based games show a plus in sales as well. This also holds true for our scratchoff tickets and ToiToiToi. Friedrich Stickler In EuroMillions for example, we have a sales plus of 5.42 per cent. We were definitely blessed with the aforementioned amount of luck, as there were three more rounds following a Superpot than in 2013. During the six rounds following a Superpot in October, we even reached the maximum amount of EUR 190 million. The scratch-off ticket sales have increased by 6.99 per 4 Friedrich Stickler At win2day we have continued on the path of new developments in the mobile segment and were able to launch some exciting games. Also, we have introduced some great innovations and new games to our customers. However, especially with win2day we are constantly facing an overwhelming transnational online offer of illegal gambling. And while we are massively supporting and contributing to the protection of players and minors, there are no such efforts in the illegal sector. With Bashkortostan and Albania, Austrian Lotteries has taken the chance to enter two new markets. Unfortunately, there is no good news from Russia, although the most recent figures were actually very positive. What did cause this kind of development? Karl Stoss Yes, we have performed outstandingly and in this relatively small autonomous republic, we have achieved more than some of the other lotteries that are active throughout the entire Russian Federation. However, late in December 2013, a new federal lottery law was adopted in Russia on very short notice and unexpectedly, which outlaws any private, regional lottery offers. Therefore, after more than six years of successful work and a repeated sales record in the first half of 2014, we were forced to Annual Report Austrian Lotteries 2014 discontinue the draws for Lotto “6 out of 40 + Joker” and the sale of scratch-off tickets and break-open tickets as of 30 June 2014. Despite the licence valid until 2018. What are the business developments in Albania? Bettina Glatz-Kremsner With the scratch-off tickets, we have launched a product in Albania that is very attractive to the local population and thus performs excellently. For Lotto, we have implemented a second weekly draw and since September we have been offering a number lottery called Fito Fito with daily draws, based on the Austrian ToiToiToi. Bettina Glatz-Kremsner To achieve the first place in the “Place to Perform” ranking is a valuable acknowledgement of the measures and actions we have taken in terms of apprentice training. On the one hand, we consider it our duty to give young people a good start for their professional career. On the other hand, we also benefit from the possibility to raise the interest of highly qualified junior employees in our company and to offer them comprehensive training, passing all the individual divisions and domains of our company. Thereby, it becomes an investment in the future and our future success. Player protection – and above all the protection of minors – is a top priority of Austrian Lotteries who is a pioneer in this area. What were the company’s accomplishments in this respect in 2014? Friedrich Stickler It is a great achievement to maintain our already very high level. Proof of that is the once again successfully attained partial certification in Responsible Gaming according to the standards of the European Lotteries. However, we will not settle for the status quo and are therefore constantly looking to identify potentials for improvement. Therefore, we have intensively examined our advertising activities and enhanced our responsible- advertising guidelines in order to also comply with the stringent requirements of the licensor. For win2day, Austrian Lotteries has been re-awarded with the certificate for social responsibility by the British institution GamCare. However, all of this is only working so well because we have highly trained employees who are practising our philosophy and attitude towards Responsible Gaming in their daily work routine. Karl Stoss Especially in the past financial year, we have seen what is possible and what we as a company can achieve when we work together towards the same goal. More concretely, for the future this certainly also means to focus on the expenses and to work efficiently. The great potentials of our employees, whose numerous ideas, suggestions and innovative solutions are of course an important asset for the future in this respect. You have mentioned the future. What can we expect from Austrian Lotteries in 2015? Karl Stoss We are well positioned and prepared for the next years to come. We will continue to offer Austria responsible games of chance with a maximum of fun in playing. Thank you very much for the interview. Karl Stoss Austrian Lotteries also achieved the first place in the “Place to Perform” ranking in the “apprentice training” category. An accomplishment that is not expressed in sales results and profits. Friedrich Stickler Bettina Glatz-Kremsner 5 As ................ I combine various different IT systems. The secure handling of all games is one of the top priorities of Austrian Lotteries. My job is to ensure that our data centres work 24/7 without incident. The highly available IT infrastructure is regularly maintained in two data centres and adjusted to constantly increasing requirements. Analytic thinking and the willingness to continuously learn new things are essential for my job. Especially in the field of information technologies it is absolutely necessary to keep up in such a fast-paced environment. ? Am I S) a storage manager T) a system manager for networks & data centres U) a hardware engineer The Company Organisational Chart of the Group Lotto-Toto Holding Gesellschaft m.b.H. Casinos Austria AG Headquarters: Vienna Headquarters: Vienna Österreichische Lotterien Gesellschaft m.b.H. Headquarters: Vienna 68% 50% 32% Russisch Österreichische Lotterien Holding Gesellschaft m.b.H. Entertainment Glücks- und Unterhaltungsspiel Gesellschaft m.b.H. 50% 59% Headquarters: Vienna 56% 100% 100% 100% Headquarters: Vienna 000 Ural Loto Headquarters: Ufa, Russia Albanisch Österreichische Lotterien Holding Gesellschaft m.b.H. 100% 100% Headquarters: Vienna Glücks- und Unterhaltungs spiel Betriebs gesellschaft m.b.H. Headquarters: Vienna win2day Entwicklungsund Betriebs gesellschaft m.b.H. Österreichische Sportwetten Gesellschaft m.b.H. Headquarters: Vienna Headquarters: Vienna Lotaria Kombëtare Sh.p.k. Headquarters: Tirana, Albania as of 31 December 2014 8 Annual Report Austrian Lotteries 2014 Shareholders and Bodies Casinos Austria AG 68 per cent Lotto-Toto Holding GmbH* 32 per cent * The shares of Lotto-Toto Holding GmbH are held by: –CLS Beteiligungs GmbH (Bankhaus Schelhammer & Schattera Aktiengesellschaft, BAIH Beteiligungsverwaltungs GmbH), –RSV Beteiligungs GmbH (ERSTE Group Bank AG, Raiffeisen-Invest-Gesellschaft m.b.H., Österreichi sche Volksbanken-Aktiengesellschaft), –LTB Beteiligungs GmbH (BAIH Beteiligungsverwaltungs GmbH, BAWAG P.S.K. Bank für Arbeit und Wirtschaft and Österreichische P ostsparkasse Aktiengesellschaft, Hypo-Banken-Holding Gesell schaft m.b.H., Erste Bank der oesterreichischen Sparkassen AG, ERSTE Group Bank AG), –ORF (Austrian Broadcasting Corporation) The Executive Committee: • Walter Rothensteiner President of the Supervisory Board • Gerhard Starsich 1st Vice-President of the Supervisory Board • Erich Hampel 2nd Vice-President of the Supervisory Board Members delegated by the Works Council: • • • • • • • • Ernst Gyöngyösi Franz Baumgartner Norbert Eigl Gertrude Kopp Christopher Nemec (until 9 April 2014) Tassilo Kager (as of 10 April 2014) Gerald Schwarz (until 9 April 2014) Erika Pilz (as of 10 April 2014) Audit Committee: • • • • • • resident Walter Rothensteiner P 1st Vice-President Gerhard Starsich 2nd Vice-President Erich Hampel Gerhard Baumgartner A lfred Ludwig A lexander Wrabetz Members of the Audit Committee delegated by the Works Council: • • • • rnst Gyöngyösi E Gertrude Kopp Franz Baumgartner (until 9 April 2014) Erika Pilz (as of 10 April 2014) The State Commissioners: • • artin Atzmüller M (State Commissioner) Christoph Schlager (Deputy State Commissioner) The Members: • • • • • • • • Maria Theresia Bablik Gerhard Baumgartner Stephan Koren A lfred Ludwig Peter Mooslechner Gerald Neuber T homas Uher Alexander Wrabetz The Managing Board: • • • arl Stoss K Chairman of the Managing Board Friedrich Stickler Member of the Managing Board Bettina Glatz-Kremsner Member of the Managing Board as of 31 December 2014 9 The Company Organisation of the Company Close cooperation between the individual companies within the Group positively influences their position on the Austrian gaming market. The individual business segments of the Casinos Austria and Austrian Lotteries Group are organisationally represented by the respective business units. Each business unit is strategically assigned to one or several Board Members of Casinos Austria or Austrian Lotteries. Operational management resides with the respective executive management and heads of the divisions. Management Board Österreichische Lotterien Ges.m.b.H. Karl Stoss Bettina Glatz-Kremsner Friedrich Stickler Cross-company services are bundled in corporate functions available to the entire Group. These functions are also strategically assigned to one or several members of the Managing Board and are managed by one or several division heads. Business Unit Lotterien Distribution Extended Management: Peter Ulovec, Erwin Binder Reinhard Horvath Marketing & Product Development Elisabeth Römer-Russwurm International Business Legal/ Managing Board Office/ Draws Erwin Binder Barbara Hoffmann-Schöll Russian Federation Michael Grech Corporate Functions (CF) Corporate Communications Extended CF Management: Martin Himmelbauer Information Technologies Extended CF Management: Erich Schuster 10 Corporate Development Internal Audit Human Resources Extended CF Management: Peter Ulovec, Reinhard Summerer, Christian Schütz Extended CF Management: Erhard Peinthor Extended CF Management: Erich Valenta Finance & Group Controlling Public & European Affairs, CSR Extended CF Management: Wolfgang Sperl Extended CF Management: Peter Erlacher Services & Strategic Facility Management Extended CF Management: Oskar Berzsenyi, Nathan Bomze Legal Affairs Extended CF Management: Markus Eder Responsible Gaming, Advertising & Sponsoring Extended CF Management: Herbert Beck as of 31 December 2014 Annual Report Austrian Lotteries 2014 Report of the Supervisory Board During the business year, the Supervisory Board obtained regular reports about the business progress and the course of business from the Managing Board. Thereby, the Supervisory Board was able to monitor legal compliance, expedience, profitability and cost-effectiveness, as well as the appropriate fulfilment of the management’s social obligations. In the context of monitoring of the management activities of the Managing Board pursuant to Art. 30j, paragraph 1 GesmbHG (Act on Companies with Limited Liability), the Supervisory Board finds that the Managing Board has executed all business procedures of the company in compliance with the memorandum and articles of association, the decisions and resolutions of the General Meeting of Shareholders and of the Supervisory Board, as well as in compliance with all legal regulations. Further, the Managing Board has led and guided the company as a whole and in all segments in accordance with the purpose of the company and with the intended success. In the Supervisory Board meetings, aspects of business policy were addressed and important decisions, in particular regarding transactions reliant on the approval of the Supervisory Board, were made, aiming at pro-actively monitoring the planning of and involvement in future commercial operations. The report of BDO Austria GmbH, an auditing and tax consulting company in Vienna, on the audit of the company’s financial statements dated 31 December 2014 was submitted to the Supervisory Board. The audit executed by BDO Austria GmbH, auditing and tax consulting company in Vienna, of the financial statements and the management report compiled by the Managing Board did not give grounds for any kind of objection. An unqualified audit opinion was issued for the financial statements. Vienna, 25 March 2015 Walter Rothensteiner President of the Supervisory Board 11 The Company Framework Conditions The corporate purpose of Austrian Lotteries is defined in the Austrian Gaming Act, the explanatory notes hereto and the government notice on the licence by the legislator. The essential objective of the Austrian regulations regarding the gaming business is to protect customers against an excessive offer of gaming products, as well as against dubious providers. The Austrian Gaming Act (GSpG) is the basis for Austrian Lotteries to legally offer games of chance on the Austrian market. It contains the applicable legal provisions, which are the “game rules” for Austrian Lotteries. Their observance is monitored and examined by the licensor. Moreover, with the government notice dated 10 October 2011 concerning the licence according to Art. 14 GSpG permitting the operation of games as defined in Arts. 6 through 12b GSpG, BGBl. (Federal Law Gazette) No.620/1989 as amended in BGBl. I No. 76/2011 awarded to Austrian Lotteries for the period ending on 30 September 2027, the licensor has defined unambiguous obligations which must be consistently implemented by Austrian Lotteries. Therefore, the licensee is obligated to report to the licensor, and, among others, give an account of the following: • M easures regarding player protection and the prevention of gambling addiction, as well as the orientation of these measures to current international standards, including statistical data in terms of suspensions and gambling restrictions • Monitoring of age limits for participation in lottery games, as well as related measures • A pplicable responsible-marketing standards of the licensee to ensure the observance of responsible- advertising criteria • Advertising presence/appearance during the past twelve months plus advertising strategy for the following twelve months • Measures related to the combating and prevention of money laundering and criminal activities, as well as their orientation to applicable current international standards (including information on suspected cases of money laundering, as well as malversations by players or internal delinquents) • Structure and cost of the distribution network, as well as in particular the development of the number of retail partners 12 • A ll VLT locations, and the respective number of VLTs, including the applicable framework of gaming rules • Average annual prizes paid out in per cent of sales from VLTs, other electronic lotteries (per gaming category), as well as of the number lottery • Achieved, maintained and sought licence-relevant certifications. These measures provide for thorough monitoring by the licensor regarding the scope of the gaming portfolio and the way of operational management conducted by the licensee in terms of regulatory and socio-political objectives. On the one hand, the licensor guarantees the prevention of criminal elements entering the Austrian gaming market by monitoring the given shareholder structures, on the other hand, the licensor regulates and approves each new product through the gaming rules, which themselves must contain Responsible Gaming concepts. In Art. 14, paragraph 2 (7) of the Austrian Gaming Act (GSpG), the legislator clearly stipulates that a license may only be awarded to an applicant expected to best exercise the licence, especially due to the applicant’s experience, infrastructure, development measures and capital resources, as well as due to the applicant’s systems and institutions pertaining to the prevention of a gambling addiction, to player protection, to the prevention of money laundering and criminal activities, to operation reliability and security, to quality assurance, to internal monitoring and supervision, and to other applicable regulations of this Federal Law. Annual Report Austrian Lotteries 2014 Legal developments regarding games of chance within the European Union On the EU level, the EU Commission has issued so-called recommendations (Recommendations on Consumer Protection and Advertising) that shall be followed in terms of games of chance as so-called “Soft Law” in the interpretation of legal gaming regulations in the national states by the courts, including the European Court of Justice. These recommendations include consumer protection and advertising standards. However, these standards have been set relatively low so that Austrian Lotteries’ Responsible Gaming regulations exceed them by far. Further, the EU Commission and the Parliament have in particular focussed on a revised version of the Fourth Anti-Money Laundering Directive (AMLD), which now covers all types of gaming operators and not only casino operators. However, according to the present results, Member States may, in justified cases, exclude certain operators from enforcing this Directive, especially if the risk of addiction is low, which will usually be the case with terrestrially distributed games of chance like Lotto and Toto. Additionally, the European Union has thoroughly addressed the issue of betting fraud and the manipulation of sporting events and worked out the so-called EPAS Convention, which, after some fierce resistance by Malta, is expected to be signed by all Member States and the EU Commission in 2015. Another recommendation issued by the Council of the EU deals with preventing and combating illegal gambling and betting through law enforcement measures (Recommendations on Law Enforcement). These measures include in particular cross-national cooperation in law enforcement. 13 The Company Management Systems Austrian Lotteries uses management systems to systematically implement the company’s objectives and to ensure the quality of individual processes. The PDCA cycle (plan-do-check-act) is used for all relevant operational activities as well as for the management system itself. A joint framework process based on the new ISO 27001 standard has been defined for all existing management systems. This process does not only cover the common partial processes but also the specific details of the individual management systems. It builds the foundation to consolidate certification audits for several management systems in the medium term, thus reducing the certification expenditure and effort for the company. Supported by the Central Process Management Department, the company’s process managers ensure the improvement of business procedures to continuously increase the efficiency and the satisfaction of customers and employees. The quality improvement within the processes builds the foundation for certification according to various standards. Thereby, Austrian Lotteries ensures that its processes are efficient, fast and flexible and is thus able to promptly respond to expectations and requirements of customers, of the market and of the licensor. In the company’s Code of Conduct, Austrian Lotteries has defined rules of behaviour together with its employees in order to take measures and actions in an ethically and legally impeccable context and thus meet the high moral standards of the company. All of our employees are aware of their responsibility towards the public, the customers, all stakeholders and the people they work with. The Code of Conduct is not only a code of behaviour for our employees, but also reflects what we demand and expect from our business partners. The Code of Conduct is supplemented by a code of behaviour for our suppliers. 14 Data protection and privacy The individual observance of customers’ and stakeholders’ wishes, including their ideas of privacy and data protection, represents an essential principal of Austrian Lotteries’ handling of data. Special data protection requirements such as the fundamental permissibility of all data processing, the use of data collections for the intended purpose only and the requirements regarding transparency for the affected parties are paid respect to in their full extent. The Data Protection Officer of the Group facilitates the harmonisation of justified customer demands regarding the protection of their privacy with the operational requirements of customer-focused marketing. Of course the principles of data protection and privacy are also highly relevant for the handling of employee data. They are treated with the same amount of confidentiality as our customer data. Since February 2010, Austrian Lotteries has been certified according to the GoodPriv@cy Standard. This proves the secure handling of personal data and the compliance with the fundamental principles of data protection and privacy as well as contracts and agreements. The certification also constitutes an important achievement in the continuous improvement of data protection and information security. These data protection efforts are now visible to all customers and stakeholders by means of the GoodPriv@cy data protection seal of quality with which the organisation has been awarded. Annual mandatory maintenance audits and the most recent successful recertification according to GoodPriv@cy in July 2014 guarantee continuity in this respect. Annual Report Austrian Lotteries 2014 Anti-corruption compliance All actions Austrian Lotteries takes in order to combat corruption are based on the international IDW PS 980 standard. This standard defines the elements that must be contained in a compliance system, in order for this system to be regarded as appropriate. On this basis, compliance officers and agents may determine where there is room for action and how to justify these actions. The requirements of the stricter legal regulations regarding anti-corruption have been implemented by the entry into force of an internal guideline, applicable for the entire Casinos Austria and Austrian Lotteries Group. Three ÖNORM (national standard issued by the Austrian Standards Institute) certified compliance managers deal with the compliance with legal regulations and internal rules to which all employees are bound by contract. Further, we have appointed an anti-corruption officer. The design of the compliance management system (CMS) was successfully reviewed in April 2013 by external auditors and confirmed in spring of 2014 in the context of an effectiveness audit according to the standards of the independent Institute of Public Auditors in Germany (IDW). Fight against money laundering and the financing of terrorism Austrian Lotteries uses a certified management system according to the ISAE 3000 standard on money- laundering and crime prevention and is constantly analysing and assessing money-laundering risks. By means of a specific set of measures, the actions required by the Austrian Gaming Act and Banking Act to enforce the “know your customer” principle are practised verifiably and systematically. The established security organisation and the security measures at the central data centre according to the standards certified by ISO 27001 ensure compliance with the security regulations regarding the operation of storage systems. All articles of the Gaming Act and the Banking Act respectively that are relevant to our company have been categorised and are assigned to risk groups in regular intervals. During internal tests, these risk groups are allocated to a risk and maturity map. All business processes are documented and thereby made transparent for the management and the anti-money laundering officer. Our internal control system also makes sure that legal requirements are evaluated in regular intervals and included in all operational procedures. Based on this approach and the control and measurement criteria according to the international ISAE 3000 standard, the combating of money laundering is appreciated as a deliberate management task. An important detail in this context is the regular update of the company-wide process map and the related guidelines. This update is carried out at least once a year. 15 The Company Risk and opportunity management Since 2009, Austrian Lotteries has established a strategic risk and opportunity management throughout the entire Group. The permanent overview of significant strategic company risks and opportunities, as well as the timely initiation of control measures and actions support decisions to promote the continuance and growth of the company. By means of this standardised approach, new business opportunities can be seized on a greater scale and related risks can be controlled more consciously. Thereby, in addition to meeting the regulatory requirements according to the Austrian Business Law Amendment Act (URÄG 2008), additional value is achieved regarding the possible development of new opportunities. A standardised categorisation of risks and opportunities has been stipulated for all areas and domains of the Group. By being involved in the company-wide process, all managers are systematically dealing with the risks and opportunities of the company. By means of the risk and chance management (RCM) system, the risks in terms of product security and quality, player protection and the protection of minors and the reliability of gaming operations can be controlled and managed and the related chances and opportunities regarding the optimisation of product quality and customer satisfaction can thereby be seized more thoroughly. In 2014, RCM reporting was revised significantly. Through the improved use of software functions, the risk owners now have access to valuable additional information. The reports are streamlined and focus on the needs of the respective recipients. 16 Internal control system An internal control system (ICS) that is regularly reviewed by Internal Audit ensures the correctness and efficiency of process flows in terms of asset protection and compliance with business policies. As a component of the ICS, the controlling system ensures consistent planning and reporting and thereby also supports the PDCA cycle. Information security The security structure and the implemented security measures of Austrian Lotteries are certified according to the “Security Control Standard” issued by the World Lottery Association (WLA-SCS) and the information security standard ISO 27001 by BSI Management Systems. These internationally accepted standards apply for the operational security in the handling of games. Thereby it is ensured that all business procedures pertaining to Austrian Lotteries’ games are subject to a periodic improvement cycle. The focus of information security in 2014 was placed on operating and continuously improving the information security management system. In addition to personally training 47 persons to raise the awareness for information-security issues, the further development of crisis and emergency management was one of the main tasks of 2014. A continued review of the knowledge and awareness in the context of our internal information security audit, also using electronic questionnaires, has been conducted with about 220 employees. Compliance with the standards has been confirmed once again in June 2014 in an external certification audit that reviewed 19 employees within a period of four days. Annual Report Austrian Lotteries 2014 Process management The cooperation within our Group is promoted and supported by process management. By increasing the transparency of processes and the related responsibility, “frictional losses” are minimised. Today, we have 20 certified process managers. The process management tool process4.biz enables the continuous update of the Group’s models for organisational structure and process organisation and their availability to all employees via the Intranet. Process optimisations are used as a means of increasing the efficiency and effectiveness of processes. 17 As ................ I assess programmes and software. I work in a team that includes various different IT job descriptions and in which all members work together on one product. What is special in our team is that with the so-called scrum method we achieve a larger output than conventionally organised teams. I not only check whether everything in a software works properly; I also test if and how I can influence the software. Critical thinking and analysing – without any limitations – is extremely important. ? Am I E) a test manager F) a scrum master G) a security manager New Games in 2014 Keeping our games up-to-date and attractive for our customers is on the main agenda of Austrian Lotteries. With the “TeamTipp” and the “Anteilsschein”, the new designs of the game shows on TV and many exciting scratch-off tickets and break-open tickets with additional winning opportunities, 2014 saw a lot of innovation in our lottery games. 20 With the “TeamTipp” and the “Anteilsschein” (two forms of lottery syndicates), Austrian Lotteries turned over a new leaf in terms of participation in our games. Since 14 July 2014, up to ten people can play – and win – with the same picks, using the Lotto, EuroMillions or Toto TeamTipp. Each member of the team receives their own ticket and can thus claim his/her own prize independent of the other team members. Thereby, questions like “who gets to keep our ticket?”, “how will we share the prize?” are in the past. The times of being unsure whether the prize will actually be shared in case of winning are over. Each play slip has an extra “TeamTipp” box that has to be ticked. When submitting the play slip, the number of team members must be stated. Teams between two and up to ten people can play the TeamTipp. The ground rule is: The team has to play at least as many picks as there are members in the team. The “TeamTipp” can be played via standard play slip or quick pick and for Lotto and Toto additionally as system play slip. A separate ticket is printed out on the online terminal in the retail outlet for each team member. This is especially important, as the ticket works as a bearer paper in case of winning and the prize is paid out to the ticket holder. With the “TeamTipp”, every team member receives a ticket with which the ticket holders can claim their respective shares of the total prize the team has won. Annual Report Austrian Lotteries 2014 Peter Rapp has been the host of the Brieflos Show since the very beginning and presents the show in the new studio. In mid-June, the prices of Lotto were adjusted from EUR 1.10 to 1.20. At the same time, the prize pyramid was slightly adapted. Additionally, the Lotto game has become more attractive due to higher winning sums in the first prize tier. More chances of winning with the “Anteilsschein” Since 20 October 2014, Lotto and EuroMillions participants have the possibility to play a wide range of picks with only a small stake and may thereby increase their chances of winning significantly. The name of this solution: the “Anteilsschein”. The player acquires one or several share/s of a defined number of already played picks, a so-called “Chance”, and thus receives a share of the winnings. For Lotto “6 out of 45” as well as for EuroMillions, there are three forms of “Chances” that differ in the number of picks and the number of total shares – and thus also in the price per share. The picks of each Chance are created by a random number generator based on Lotto or EuroMillions systems. This new form of participation is available via special play slips or by requesting it directly at the retail outlet. It is also possible to play the “Anteilsschein” on win2day. For each Chance, the player can buy up to five shares. The numbers played and the number of shares bought are printed on the lottery ticket. The price per share depends on the Chance selected. It is calculated by multiplying the number of picks with the price per pick, divided by the number of shares plus the share fee of 10 cents. The share fee is charged to cover any shares of a Chance that are not actually sold, as these unsold shares are also participating in the draw. The prize money that is won by unsold shares is donated to charitable causes by Austrian Lotteries. 21 New Games in 2014 New studio and new design for the TV shows There are only a few programmes on ORF that can look back on a similarly long history as the three TV shows involving the successful games of Austrian Lotteries. Together, the Bingo Show, the Brieflos Show (including its predecessor “Millionenrad” (Wheel of Millions) and the live draw of Lotto “6 out of 45” with Joker are a proud 67 years old. In early September 2014, a new era began for these TV classics: The relocation to a new, modern studio at the ORF head office and in this context also a contemporary show design. The studio is equipped with state-of-the-art decoration and lighting elements, as well as with large LED screens. All three shows are produced in this studio and are thereby clearly associated with one “programme family”. By means of different image designs and the specific use of lighting and LED technology, they receive a certain amount of individuality and remain recognisable for the audience. “At the flick of a switch” it is thus possible to create an individual ambiance for each show. More than one year’s work was put into the new appearance. Additionally, a stand for 75 people including a new show staircase has been integrated in the studio. Important data like scores and winner information are displayed in an entertaining and informative way. It was a defined goal to pull the traditional shows into today’s world with a new look and sound, while at the same time meeting the expectations of our core audience. The shows’ contents have also been modernised: In the Brieflos Show, the 22 studio audience gets even more involved in the show’s action. A new panel game element, dealing with topical events in Austria among other things, gives an extra boost to the excitement and dynamics of the show. The French lottery changed TV stations in January 2014 and has since been broadcasting the EuroMillions draw on the new station “TF1”. For this, the studio as well as the presentation has been given a new design. ORF has integrated this new draw in the existing EuroMillions show. In this context, mainly the design of the Austrian show’s introduction and conclusion have been adjusted to the new draw. There were no changes in terms of technology and content. Bingo celebrity special for the 15 year anniversary For the 15th anniversary of Bingo, a celebrity special of the TV show was aired on 22 November 2014. Five Austrian celebrities – Barbara Karlich, Kristina Sprenger, Petra Frey, Gerald Pichowetz and Andreas Steppan – had to answer the Bingo Show questions. This was not only to entertain the studio audience, but also to support the charity “Licht ins Dunkel” (“light up the darkness” campaign). Each correct answer added EUR 1,000 to the donations account of “Licht ins Dunkel”. 19 questions were asked, 17 were answered correctly (Kristina Sprenger showed her talent as a true quiz expert) and Board member Friedrich Stickler was so delighted with the quiz team’s performance that he rounded up the donation for “Licht ins Dunkel” to EUR 20,000. Annual Report Austrian Lotteries 2014 Links: Marie Christine Giuliani and Dorian Steidl at the new Bingo Show studio Right: Thomas May and Evelyn Vysher present the draws for Lotto and Joker The jackpot subscription for Lotto and EuroMillions on win2day As a special service for the customers, the jackpot subscription was introduced on win2day for Lotto and EuroMillions. It is an extension of the already existing play slip subscription on win2day. With the jackpot sub scription, the player automatically participates in each jackpot round of Lotto and each round of EuroMillions that has a Europot of more than EUR 15 million. Update of Lotto and EuroMillions App: “Lotterien Shaker” The already existing App “Lotterien Shaker” for iPhones, Android smartphones, and iPads was also enhanced with additional functions in 2014. The players are now also able to submit standard picks. Additional new features include the personalised push subscription that acts as a reminder for Lotto and EuroMillions draws and also offers a jackpot and Europot reminder. The “Lotterien Shaker” also allows players to keep an eye on tier totals. Since this update, scratch-off tickets have been available on mobile devices as well. Anytime and anywhere customers can try their luck and win EUR 3,000 a month for life or up to EUR 50,000 with “Cash”. Submitting picks and buying tickets is only possible with a valid win2day account. a participant from Portugal to think about all the possibilities that open up when winning such a prize. Scratch-off tickets bring variation to the game Our scratch-off tickets raced into the year 2014 with the “Autorallye” (“Car Rallye”) ticket that additionally offered the possibility to win three Audis and 25 x EUR 5,000 . The tickets “Wild West”, “Super Gold”, “MoneyMaker”, “Summer Cash”, “Ein Leben lang PLUS” (“Win for Life PLUS”), “Black Pearls”, “Happy Halloween”, “Adventkalender” (“Advent Calendar”), “Merry Kissmas” and at the end of the year “Viel Glück” (“Good Luck”) followed. Since September 2014, the tickets “Cash” and “Ein Leben lang” are also available for mobile devices. They were also integrated in the Lotterien Shaker App. The new break-open tickets 2014 The break-open ticket year started in January with the ticket “Zusatzgeld” (“Plus Cash”) with additional prizes of 10 x EUR 10,000. The tickets “Geschenklos” (“Gift Ticket”) with 3 x EUR 50,000 additionally, “Ostern” (“Easter Ticket”) with 5 x EUR 25,000 additionally, “Mercedes” with five Mercedes A180 additionally, “Extra Bonus” with 10 x EUR 10,000 additionally and the Christmas Ticket followed. More quick picks for ToiToiToi and EuroMillions and a 100 million Superpot for the 10th anniversary Early in the year, ToiToiToi expanded its quick pick offer so that customers may now play one, two, three, four, five or even ten quick picks at once. On Friday, 3 October 2014, EuroMillions had a very special occasion to celebrate. For the 10 th anniversary, the Europot was filled with the guaranteed minimum prize of EUR 100 million. Customers had the chance to play for this sum via standard play slip and quick picks. Since midJuly one ticket may contain up to 20 quick picks. But the Europot was not won on 3 October and instead grew to EUR 190 million by 24 October. Since this day, it is up to 23 The Year of Millionaires The 2014 winner record of Austrian Lotteries is an impressive read: in total, 268 people were lucky enough to each win EUR 100,000 or more. This means that there were five top-cash prize winners every week on average. 55 of them even won prizes of one million or more. Therefore, in 2014 we had more millionaires than ever. The second-highest prize in history was won in summer 2014 by a EuroMillions player from Tyrol: He was the only one to hit the Europot on 19 August with “5 plus 2 correct numbers” and won more than EUR 54.3 million. For him, the days of financial worries are probably over. This is of course the highest lottery winning in 2014 and the second-highest in the Austrian history of gaming. 52 times “all six correct” with winnings in the millions and the number 13 as a special favourite With more than EUR 5 million, a player from Lower Austria scored the highest jackpot of the year. However, this is only the tip of the iceberg. In total, 61 Lotto players managed to predict the six numbers correctly. 52 times, the correct pick of numbers yielded a prize of EUR 1 million or more. Thus, the last year saw a record of Lotto millionaires (previous record: 50 in 2012). The highlights of the Lotto year were two quintuple jackpots. In July, four winners shared the prize of roughly EUR 9.5 million (this was the round with the most correct picks together with a triple jackpot round in May, in which there were also four jackpot winners). At the end of the year, two players won EUR 9.9 million together. The number most frequently drawn in 2014 was the number 13. A total of 21 times it came out of the funnel. The rarest drawn number was 33, only drawn four times. Winnings of more than EUR 100,000 constitute a top cash prize at Austrian Lotteries. In total, we had 268 such winners in 2014: 76 in Lotto (thereof 61 with 6 correct numbers, thereof 52 with prizes in the millions), 31 in EuroMillions (thereof two prizes in the millions), 92 in Joker, 23 in ToiToiToi, 18 in the Class Lottery (thereof one prize in the millions), nine in Brieflos (break-open tickets), six in Toto/Torwette (football pools and correct score bet), five in Bingo, three in Rubbellos (scratch-off tickets), two in Zahlenlotto (Digit Lotto), and three in win2day games. 24 Lotto winnings In the last year there were 44.1 million individual winnings with a total amount of prizes paid out of EUR 285.57 million. 61 times the six correct numbers were picked in 2014. Highlights of the past business year were the two quintuple jackpots. The first was won on 6 June by players from Vienna, Salzburg, Upper Austria and Lower Austria and yielded a prize of EUR 2.37 million for each of them. The second quintuple jackpot positioned itself as a EUR 9.9 million Christmas present under the tree on 24 December 2014. It was opened by two players from Lower Austria who each won EUR 4.95 million. The highest prize for six correct numbers was also won in Lower Austria on 10 September with exactly EUR 5,011,665.70. All in all, the past year saw 32 single jackpots, 16 double jackpots, seven triple jackpots, three quadruple jackpots, and two quintuple jackpots. Toto and Torwette winnings In 2014 there were roughly 259,000 individual prizes. The total amount of winnings was EUR 4.34 million. The thirteen correct bets in Toto (football pool) were placed 123 times in total in 2014. In late September a player from Vienna placed thirteen correct bets after a quadruple jackpot and thereby won the highest jackpot of the year with roughly EUR 424,000. EuroMillions winnings Last year, there were 13.3 million EuroMillions winnings in Austria alone. The total of prizes paid out amounted to EUR 169.46 million. The highest prize in Austria with more than EUR 54.3 million went to a player from Tyrol on 19 August 2014. This winning was the second highest in the Austrian history of gaming and was achieved via quick pick. After a long time, the Europot therefore went to Austria once again. All in all, it was the eleventh time that the “5 plus 2 correct numbers” were picked in Austria. Annual Report Austrian Lotteries 2014 Bingo winnings In the last year, there were more than 878,900 individual winnings. The total of prizes paid out amounted to EUR 4.12 million. Five players won the Bingo Multi Bonus in 2014. In late January, the highest Bingo prize of the year with more than EUR 245,000 went to Styria. Throughout the entire year, Bingo was won 67 times, Ring 68 times, and Box 89 times (all 1st chance). Zahlenlotto winnings More than 26,300 Zahlenlotto (Digit Lotto) picks won in 2014; that makes 507 winning picks on average per week. The total of prizes paid out amounted to EUR 1.53 million. ToiToiToi winnings In the last year, there were more than 1.9 million individual winnings. The total of prizes paid out amounted to EUR 11.09 million. 23 participants were lucky enough to win a top cash prize of EUR 200,000, 150,000, or 100,000 in 2014. Brieflos winnings In addition to a large number of instant prizes, there were all in all nine Brieflos (break-open tickets) top cash prize winners, who won more than EUR 100,000, EUR 150,000 or EUR 250,000 respectively in 2014. Six were successful with a break-open ticket, three won in the Brieflos TV Show. A total of roughly EUR 1.1 million was won in the 52 Brieflos Shows of 2014. Two strong appearances by candidates made the show on Sunday, 30 November, the most spectacular of the year: First Johann from Upper Austria entered the stage in the newly designed studio and won the first prize of EUR 100,000. Then Eveline from Styria tried her luck at the Brieflos wheel. She also hit the right way of spinning and saw the red rubber ball landing on the EUR 100,000 field. It was the show with the highest prize payout in 2014 and the first in which both candidates scored a winning in the six figures. Joker winnings In 2014, there were more than 14.1 million individual winnings. The total of prizes paid out amounted to EUR 80.07 million. The Joker was won 146 times. The highest Joker of the year with EUR 731,674.90 went to Upper Austria in early October. Overall, we had 21 jackpots, five double jackpots and one triple jackpot. Klassenlotterie winnings In one lottery, 29 million-strikes can be won. The odds of becoming a millionaire by means of the Klassenlotterie (Austrian Class Lottery) thus is 1 : 8,621 with one ticket number, and with a combination of ten ticket numbers the odds even increase to 1 : 862, if all six classes are played. 25 As ................ my job requires a high degree of sensitivity. I have a good overview of all games offered by the company and know which promotions and raffles are currently conducted. People contacting me usually want or need something from our company. The first impression counts if we want our customers to stay customers. Sometimes I take them by the „virtual“ hand and lead them to where they will find answers to their questions. ? Am I Z) a customer relationship manager A) a customer service centre employee B) a sales representative The Gaming Portfolio Austrian Lotteries offers its customers in Austria a gaming portfolio ranging from classic lottery games to instant lotteries. On 7 September 1986, the first draw of Lotto “6 out of 45” took place in Austria. Thus, the success story of Austrian Lotteries began. As early as in the next few years, the company was entrusted with conducting the games Toto, Brieflos, Zahlenlotto 1-90 and Klassenlotterie by the Österreichische Glücksspielmonopolverwaltung (Austrian gaming monopoly administration). These games were further developed and adjusted to market conditions. By introducing the add-on games Joker and Torwette, the first product innovations were launched. With the Rubbellos, another instant lottery was launched in February 1995; 28 in 1998 the Internet gaming portfolio went online. Bingo followed in 1999, and with win2day, the new online gaming platform was launched on 19 February 2003. ToiToiToi was introduced on 3 March 2003. The first WINWIN location with Video Lottery Terminals opened its doors in May 2004. Since 2 October 2004, Austrian players have had the possibility to participate in EuroMillions, the European lottery. In autumn 2013, the new Toto was introduced at the retail outlets. With a new game design, two rounds per week and the customisable Toto programme, the expectations and wishes of customers have been implemented. Annual Report Austrian Lotteries 2014 Lotto “6 aus 45” (“6 out of 45”) Lotto “6 out of 45” is the Austrians’ favourite lottery game. The “6 out of 45” formula is customised to the gaming behaviour of the Austrians and the population size of the country, which leads to a small number of top prizes, attractive medium-tier prizes, and many small cash prizes. The Lotto draws are conducted on Wednesday and Sunday evening. Toto and Torwette (football pool and correct score bet) 1, 2 or X? A certain amount of football know-how can be quite an advantage in Toto and for the correct score bet, since expertise and experience may enlarge the player’s chance of winning. Both games are based on the correct projection of football match results. The result of every match must be predicted in the form 1, 2, X: • Bet 1 stands for victory of the home team. • Bet 2 stands for victory of the visiting team. • Bet X stands for a tied match. The correct score bet can only be played in combination with at least one Toto bet. For the correct score bet, the player has to place a bet on the exact results of the first five Toto matches. The hat-trick presents an additional possibility to win. The hat-trick is won if the player has placed thirteen correct bets in Toto and five correct results in the correct score bet on one ticket. EuroMillions The numbers written in the stars is determined every Tuesday and every Friday at the EuroMillions draw. The five correct numbers in the numbers field and the two correct numbers in the lucky stars circle – that is what it takes to win the Europot. Nine countries, one European lottery, and unparalleled winning amounts – that is the short-version formula of EuroMillions. The key to the success of a game is its attractiveness. In the case of EuroMillions this attractiveness can be mainly attributed to the high winnings available, but also to the high number of winning possibilities. For that exact reason, the EuroMillions countries France, the UK, Spain, Belgium, Ireland, Luxembourg, Portugal, Switzerland, and Austria right from the beginning aimed to keep the game attractive and to continuously enhance the conditions for the participants. Bingo During the Bingo TV show, the tension rises with each number announced, since there is no jackpot for Bingo – numbers continue to be drawn until finally there is a winner. Bingo is a game that combines the pari-mutuel game principle with fixed-odds elements. A pari-mutuel game means that the amount of the individual winning sum depends on the number of picks played and the number of winners in the individual prize tiers. Bingo’s fixed-odds games are “Card” with a fixed winning sum of EUR 1.50 and the Bingo Multi Bonus. For Bingo, numbers are drawn from a numerical series reaching from 1 to 75. The goal is to achieve the grand prize: “Bingo”. As op posed to draw-based games, winnings in a higher prize tier do not preclude winnings in a lower tier. 29 The Gaming Portfolio Zahlenlotto 1–90 (Digit Lotto 1-90) Authorised by decree of Empress Maria Theresa more than 260 years ago, Zahlenlotto is the oldest licensed game of chance in Austria. One, two, three, four, or five numbers from 1 to 90 can be selected by marking them. Five numbers are drawn out of a series from 1 to 90. There are seven different versions of the game – Extrakt, Ruf, Ambo, Terno, Ambo-Terno 3, Ambo-Terno 4 and Ambo-Terno 5 – which yield different prize amounts. The player may choose from a range of defined stakes starting from EUR 1 up to EUR 500. The highest possible prize amounts to 5000 times the stake. Joker Joker was initially introduced in 1988 as an add-on-game for Lotto and Toto. Over the years, more games were added so that today, players can mark their “Yes” to Joker also on Zahlenlotto, Bingo and EuroMillions play slips. Joker is a pari-mutuel game (1st prize tier) combined with fixed odds (2nd through 6th prize tier). If the Joker number on the ticket (read from right to left) is identical to the Joker number drawn, the grand prize – the Joker – is won. 30 ToiToiToi Every day a lucky day! With ToiToiToi this might just come true, since the right lucky symbol in combination with the five correctly picked digits yields up to EUR 200,000. The six-digit ticket number consists of two parts: a fivedigit combination of numbers and one of seven possible lucky symbols. The lucky symbols are: ladybug, chimney sweep, four-leafed clover, moneybag, lucky mushroom, lucky horseshoe, and lucky pig. ToiToiToi is a fixed-odds lottery game. The prize amount depends on the stake amount, as well as on how many digits of the played combination of numbers correspond to the digits of the winning number drawn. Klassenlotterie (Austrian Class Lottery) In January 1913 introduced by Emperor Franz Joseph I of Austria via Imperial Law Gazette, this game still stands for wealth and the fulfilment of long held dreams. In 1990, Austrian Lotteries took over the administration and execution of the Class Lottery game from the former gaming monopoly administration and has since modified and improved the game several times in order to keep it attractive. However, in all changes it was paramount to maintain the original character of the game. Annual Report Austrian Lotteries 2014 The Austrian Class Lottery is a number lottery that is conducted over six game phases, the so-called “Classes”, for a period of approximately six months. 250,000 tickets per lottery are issued, from which all in all 248,196 winnings with a total value of EUR 126 million are drawn. Additionally in 2014, the gold class was offered as an add-on class in which 20 times gold in the value of EUR 100,000, as well as 90 times gold in the value of EUR 50,000 and 4,000 times gold in the value of EUR 1,500 were raffled off, as well as the super class that offered the chance of winning EUR 100,000 every day. In 2014, the 3rd to 6 th class of the 177th lottery, the 178 th lottery, and the 1st and 2nd class of the 179 th lottery were played. Tickets for the Austrian Class Lottery are sold in six branches, which for their part have a distribution network of 295 retail outlets. Rubbellos (scratch-off tickets) Scratch-off tickets belong to the category of instant lotteries. After having scratched-off the layer of the winning field, you can see immediately whether and how much you have won. Brieflos (break-open tickets) Breaking open the “Brieflos” is the ultimate thrill. After all, it is up to the individual player, how fast he/she unfolds the ticket. Brieflos is an instant lottery, in which immediately after breaking open the ticket the players know whether and how much they have won. With the break-open tickets, Austrian Lotteries has the possibility to allocate additional prize money or non-cash prizes to all or to individual prize tiers. The first prize of Brieflos is EUR 100,000. The Mega Brieflos is characterised by its larger format and the “mega grand prizes” of EUR 250,000. The Brieflos TV Show The second winning level for Brieflos is the Brieflos TV Show. In order to be able to participate in the Brieflos TV Show, the words “Die Brieflos Show” must be displayed in the winning field. If this part of the ticket – filled with name and address of the player – is handed in and subsequently drawn out of all participating tickets during the Brieflos TV Show, then the player will be invited to participate in the next Brieflos TV Show. Right from the start in 1995, Austrian Lotteries pursued a multi-game strategy for its scratch-off tickets. This means that many different scratch-off tickets – permanent and limited-duration games, as well as games with a seasonal focus – are offered on the market at the same time. The payout rate for scratch-off tickets may be designed flexibly; it must range between 55 and 67.5 per cent of the ticket price. The average annual payout rate is at 60 per cent. 31 The Gaming Portfolio win2day Be it via classic Internet connection on a desktop or laptop computer, tablet PCs, or a smartphone – win2day is the first choice for online games of chance. The gaming website covers the range of Austrian Lotteries’ classic lottery games, sports betting and electronic lotteries in the form of casino games, the Poker Room, the Bingo Room and the Games Room. From the very beginning, Austrian Lotteries and Casinos Austria have also assigned a high priority level to the protection of minors and to the protection against excessive gambling on win2day. Detailed information regarding the Responsible Gaming measures employed on win2day can be found on page 47. Game launches in 2014 Via a subsidiary, Austrian Lotteries and Casinos Austria together operate the gaming website win2day. The win2day Entwicklungs- und Betriebsgesellschaft m.b.H. is a subsidiary of the Entertainment Glücks-und Unterhaltungsspiel Gesellschaft m.b.H., in which Austrian Lotteries and Casinos Austria each hold 50 per cent of the shares. Its business object is the development and the operation of electronic lotteries offered on win2day. Since June 2010, win2day Entwicklungs- und Betriebsgesellschaft m.b.H. has held 80 per cent of the Viennese game manufacturer “Rabcat Computer Graphics GmbH”. The range of casino games was expanded in 2014 by the slot games “African Dream”, “Candy Pop”, “Robbie Rich Bonus”, “Fruit Stars”, “Lucky Dolphin”, the video poker game “Joker Lady” and the roulette version “Double Roulette”. Moreover, the “Frozen Diamonds” mini game was integrated into the Bingo Room. The mobile section was expanded with the games “Fruit Stars”, “Frozen Diamonds” and “Jacks or Better”. These games can be played on mobile devices directly via win2day and have been optimised for the two leading operating systems iOS and Android. The Poker Room on win2day The electronic lotteries The electronic lottery games on win2day are available on a multi-channel gaming platform with an integrated virtual wallet function for participation in gaming via the Internet. According to Art. 12a of the Austrian Gaming Act (GSpG), electronic lotteries are games of chance, for which the gaming contract is made via electronic media. The decision of winning or losing is induced by the central system. Pursuant to Art. 12a, the licence for “electronic lotteries” is held by Österreichische Lotterien Ges.m.b.H. (Austrian Lotteries). The range of games available in the Poker Room, the Bingo Room, and the Games Room, as well as the casino games are defined as electronic lotteries. Keno is conducted in accordance with Art. 12b of the Gaming Act, however, it is only offered via the Internet on win2day. 32 The all-Austrian Poker Room on win2day offers players to try their luck at the virtual poker table with popular games like “Texas Hold’em” and “Omaha”. There are only Austrian tables available. That means the only opponents are other participants from Austria. Games are played with 52 cards (= one deck) which are provided by the central system. The cards are also shuffled and dealt randomly by a central software programme. In the spring as well as in autumn 2014 poker players had the chance to win a Volkswagen Golf in the value of EUR 20,000 and an additional prize money of EUR 10,000. Additionally, win2day offered regular poker tournament weeks with attractive non-cash prizes. Annual Report Austrian Lotteries 2014 The shooting of the new win2day TV spot at the venerable Palais Liechtenstein The Bingo Room on win2day In the Bingo Room, draws are carried out in one- minute intervals, in which the players can participate with up to 30 tickets per game. The user may choose from two Bingo options with either 75 or 90 numbers. The price of a Bingo ticket varies between EUR 0.00 and 0.25, depending on the game variant. On various occasions like Easter, spring, the beginning of autumn, or Christmas, numerous special events like guaranteed games, prolonged happy hours (tickets at half price), free Bingo, pattern Bingo, and pleasurable chat games were offered in the Bingo Room. Sports betting on win2day In 2013, the win2day offer was expanded by the sports betting segment in cooperation with tipp3. Sports betting, like all other games on win2day, is handled via the existing win2day deposit and thus includes the full player protection programme of win2day. Three types of bets are offered on win2day: The classic sports bet addresses sports enthusiasts who like to devote themselves to future sporting events. For each betting event, the customer may choose from a defined number of possible predictions. As opposed to this, live betting is available for events that are already in progress. Additionally, win2day offers a quick pick with 25 per cent odds bonus. This quick pick provides an uncomplicated and easy access to the sports betting segment. For example, one can bet on the European league leader with only one click. Due to the odds bonus, the overall odds become very attractive. win2day – social media and integrated in product development. Moreover, news on games is posted on the site and users can participate in various raffles. At the end of 2014, win2day’s Facebook page counted approximately 21,000 friends. The Twitter account of win2day also becomes increasingly popular. By the end of 2014, win2day had approximately 1,200 Twitter followers, who – similar to Facebook – are provided with the latest news regarding win2day. win2day also responds to the questions and requests of its Twitter followers. New advertising campaign Since 8 September 2014, win2day has been presenting itself with a new commercial on TV and the Internet. Directed by Academy Award winner Stefan Ruzowitzky, the first new advertising spot was shot in Palais L iechtenstein. The communicational concept of the ad focusses on the core message “playing on win2day: experience laid-back excitement”. The ad charmingly combines traditional Austrian flair with the modern gaming experience. Empress Sissi as the lead character radiates vitality and joy of living and takes a little timeout on win2day. “Austria through and through” one could say – which is also one of the corner stones of win2day’s brand identity. On win2day’s Facebook page, win2day actively communicates and interacts with its users. win2day answers questions regarding win2day’s games and collects the opinions of users, which are then considered 33 As ................ I have to have good communicational skills and work with the utmost accuracy. I work together with many people who all have different jobs. My commu nicational skills are a great advantage in this context. One of my tasks is to make sure that the Lotto draw machine doesn‘t run out of air during the draw. I am very happy to have such a respon sible position. In our area of respon sibility, it is crucial that any kind of manipulation is made completely im possible. Each draw that has been com pleted without incident is a confirmation of my work and gives me motivation. ? Am I L) a draw manager M)an employee in the technical draw operations team N) a cameraman The Gaming Portfolio WINWIN – Video Lottery Terminals Café, bar & games: this is what Austrian Lotteries and Casinos Austria are offering through their joint subsidiary at various locations in Austria. WINWIN offers the highest levels in playing and entertainment. WINWIN outlets are venues for entertainment-oriented people who love to go out. At the locations, guests aged 18 and over are offered games at the most up-to-date of Video Lottery Terminals (VLTs), a stylish ambiance, culinary creations at affordable prices, well-trained employees, and regular events including live music and entertainment programmes. The detailed Responsible Gaming measures in place can be found on page 47 of this report. Pursuant to Art. 12a of the Austrian Gaming Act (GSpG), the licence for VLTs is held by Österreichische Lotterien Gesellschaft m.b.H. (Austrian Lotteries). Austrian Lotteries mainly provides the technological know-how. Casinos Austria has been responsible for the conception of the operational segment. The Glücks- und Unterhaltungsspiel Betriebsgesellschaft m.b.H. is a subsidiary of the Entertainment Glücks- und Unterhaltungsspiel Gesellschaft m.b.H., of which Austrian Lotteries and Casinos Austria each hold 50 per cent of the shares. Its business object is the operation of VLTs, which are offered in Austria under the brand name WINWIN. VLTs optically resemble classic gaming machines of casinos, but are different in their game mechanics. While every gaming machine by means of a random generator individually decides whether the player wins or loses, for VLTs this decision is made by the random generator of a computer within the central system – based on pre- defined prize pyramids. Games at the VLTs are electronic lotteries. According to Art. 12a GSpG, electronic lotteries are games of chance, for which the gaming contract is made via electronic media. The WINWIN outlets positively supplement the existing local and regional leisure time and tourism offers. With 36 each location, WINWIN creates skilled and qualified employment and offers a responsible and respectable alternative to the so-called “Kleine Glücksspiel” (an Austrian concept in which small-scale gambling (e.g. slot machines) is regulated by the respective Provincial Government), casinos across the border, and illegal gambling. Preparations for the introduction of the player card and the connection to the Bundesrechenzentrum (Austrian Federal Computing Centre) As of 1 January 2015, the allowed maximum will be 50 terminals per outlet. A separate access control system for the gaming area is prescribed by law. Additionally, each VLT has to be connected to the Austrian Federal Computing Centre. Starting with August 2014, this required comprehensive reconstruction and game infrastructure measures in all WINWIN outlets. In concrete terms, this meant the installation of a physical separation between the restaurant area and the gaming area, visitor registration and the introduction of a player card, the connection of each terminal to the Federal Computing Centre and adjustments of the game systems and the terminals. As early as in October 2014, all WINWIN guests were informed of the changes – especially regarding the legally prescribed player card. WINWIN locations in 2014 Mayrhofen Tyrol Lienz Tyrol Ebreichsdorf Lower Austria 4 September 2004 Schärding Upper Austria 21 April 2005 Zell am See Salzburg Bruck/Leitha Lower Austria Steyr Upper Austria 06 June 2007 Wels Upper Austria 27 September 2007 L andeck Tyrol Vöcklabruck Upper Austria Kufstein Tyrol K rems Lower Austria S alzburg Salzburg 21 May 2004 14 August 2004 23 March 2006 29 June 2006 23 April 2008 29 October 2008 14 May 2009 30 March 2011 24 May 2012 Annual Report Austrian Lotteries 2014 Österreichische Sportwetten Gesellschaft m.b.H. Österreichische Sportwetten Gesellschaft m.b.H. (Austrian Sports Betting Company), in short ÖSW, was formed in April 2000 and started its gaming operations on 24 August 2001. It is a subsidiary of Entertainment Glücks- und Unterhaltungsspiel Gesellschaft m.b.H. (56 per cent), Mediaprint Zeitungs- und Zeitschriftenverlag GmbH & Co. KG (newspaper and magazine publisher) (26 per cent), and Bundesländerverlage Beteiligungsgesellschaft m.b.H (investment company of the Austrian Provincial publishers) (18 per cent). Casinos Austria AG and Österreichische Lotterien Gesellschaft m.b.H. (Austrian Lotteries) each hold 50 per cent of the shares in Entertainment Glücks-und Unterhaltungsspiel Gesellschaft m.b.H. Football World Cup 2014 The World Cup 2014 in Brazil was again the strongest-selling event in the betting range of tipp3. The attractive kick-off times, as well as the strong interest in matches of the German national team and the well-balanced mix of frontrunner victories and surprises made the World Cup a very satisfactory event for many new customers and the bookmakers as well. In the next football mega event – the European Football Championship 2016 in France – Austria will hopefully be one of the participating teams. It was also one of the reasons to extend and expand the sponsorship agreement with the Austrian Football Association (ÖFB) as well as the advertising cooperation with the successful head coach Marcel Koller. In the printed media of the shareholders, the reader gains easy access to current information about betting events and developments. For the daily newspapers, this service poses a means of strengthening the readers’ loyalty. In Austria, up to ten cumulative sports bets based on odds are not subject to the gaming monopoly. Licences for this kind of sports betting are awarded on the basis of the regulations stipulated in the respective Provincial Law. These licences have been awarded to Österreichische Sportwetten Gesellschaft m.b.H. by all nine Provinces. Participation in sports betting under the label “tipp3”– in the retail outlet, as well as via the Internet – is only possible for customers aged 18 and over. The detailed Responsible Gaming measures in place can be found on page 47 of this report. Introduction of the mobile version Following the trend of ever increasing mobility and flexibility of customers, tipp3 introduced a mobile version of its betting range on tipp3.at prior to the Football World Cup 2014. This version scores points with its clear and well-arranged appearance and good usability. Usage figures (approx. 30 per cent of online customers are already using the mobile betting option) constitute a sustainable confirmation of this decision. 37 The Gaming Portfolio Placing bets digitally with the tipp3 tippBox With the digital tippBox, tipp3 offers a new generation of betting at the retail outlets. The tippBox is easy to use, secure and reliable in accounting and provides many additional benefits. The user selects bet and stake with a finger tap on the screen, gets a ticket print-out and takes it to the clerk. There, the user pays and receives the usual ticket. The first ten devices were installed in Vienna in late November. By March 2015, 300 of them are planned to be installed throughout Austria. Thanks to the new devices, retail outlets and their customers are able to save a lot of time. At the same time, they still benefit from the high quality and security regarding the settlement of accounts by tipp3. German sports betting licence The competitive tendering procedure regarding the German bookmaker licence has still not been completed in 2014. The Hesse Ministry of the Interior issued the following information in the context of a preliminary announcement: The request for a sports betting licence submitted by DSW, i.e. Deutsche Sportwetten GmbH (German Sports Betting Company), has been ranked eleventh of approx. 150 applicants after comprehensive review and evaluation by the authority. In a next step, 38 the authority plans to grant a licence to the top 20 in the ranking, which also includes DSW. Unfortunately, defeated competitors submitted legal complaints which will further delay the procedure. Better Game Solutions (BGS) BGS is the sports betting solution provider within the Casinos Austria and Austrian Lotteries Group. At the same time, BGS represents the brand with which ÖSW addresses institutional customers. BGS offers modern, fail-safe systems as well as comprehensive consultation services regarding concepts, marketing and operation of games and betting to gaming and betting providers as well as other enterprises that plan to enter the sports betting market. Annual Report Austrian Lotteries 2014 Russisch Österreichische Lotterien Holding Gesellschaft m.b.H. The Russisch Österreichische Lotterien Holding Gesellschaft m.b.H. (Russian-Austrian Lotteries Holding Company) was formed in November 2008. Austrian Lotteries, VPB Beteiligungs Gesellschaft m.b.H. and KEBA AG are the shareholders of this company. The company owns 100 per cent of OOO Ural Loto, which has its registered office in the autonomous Russian Republic of Bashkortostan and is responsible for the gaming operations in Bashkortostan. The foundation for the market entry in Bashkortostan was laid as early as April 2008, when a memorandum of understanding concerning the introduction of a local lottery game was signed between the government of the Republic of Bashkortostan and the Managing Board of Austrian Lotteries. Prior to that, the reformation of the gaming market in the Russian Federation – and thus in Bashkortostan – in 2007 caused the government’s decision to compensate for lost tax revenue by introducing their own lottery game. In their search for a competent and reliable partner, the Bashkirian government turned to Austrian Lotteries. The operating company Ural Loto launched the scratch-off ticket “Happy Hearts” in December 2008; the draw-based lottery game Lotto “6 out of 40” started on 14 September 2009. In November 2010, the launch of Joker expanded the existing gaming portfolio and the Lotto prize pyramid has been optimised. After the first edition of the scratchoff ticket “Happy Hearts” was sold out within only three years, the sale of the second edition was started in the summer of 2012. Two additional scratch-off ticket series have been available since November 2012 – “Double Chance” and “Wild West”. In the third quarter of 2013, a second weekly draw for Lotto “6 out of 40 + Joker” and the first break-open ticket named “Supersprint” were introduced. After only a few months, the effectiveness of Ural Loto was already demonstrably much higher than that of the All-Russian competition. Up until the end, the company maintained this outstanding high level. After six years of successful work and a further sales record in the first half of 2014, a new federal law on lotteries, which was adopted on extremely short notice in late December 2013, forced Ural Loto to prematurely discontinue the draws for Lotto “6 out of 40 and Joker” and the sale of scratch-off and break-open tickets as of 30 June 2014, despite having obtained a valid licence until 2018. The orderly winding-up of the company was already initiated in the fourth quarter of 2014 and is expected to continue until the first quarter of 2016 due to obligations prescribed by Russian legislation. With its comprehensive expertise, Austrian Lotteries has managed to establish a hugely successful lottery business in Bashkortostan. Ural Loto’s distribution network included 1,520 retail outlets and generated sales of RUB 3.3 billion, i.e. EUR 80.6 million, between September 2009 and June 2014. The social contribution payments of Ural Loto, more than EUR 8 million, were used for the financing of socially significant objects and measures as well as for good causes as prescribed by law. Countless letters of appreciation from partners and the population are a testimonial to this unique success. With this project, Austrian Lotteries was able to demonstrate that, when building on reliability, transparency, expertise and social responsibility, it is possible to establish successful lottery operations even in countries with difficult framework conditions, where there is a general lack of trust in lottery products among other things. 39 The Gaming Portfolio Albanisch Österreichische Lotterien Holding Gesellschaft m.b.H. The Albanisch Österreichische Lotterien Holding Gesellschaft m.b.H (Albanian-Austrian Lotteries Holding Company) was formed in September 2012 and is a 100% subsidiary of Österreichische Lotterien Holding Gesellschaft m.b.H. (Austrian Lotteries). It holds 100 per cent of Lotaria Kombëtare Sh.p.k. which has its registered office in Tirana and is in charge of the gaming operations in Albania. After a competitive tendering procedure in September 2012, Austria Lotteries was notified that it was being granted the licence for establishing, operating and managing the Albanian National Lottery. A comprehensive product and marketing concept for the gradual and responsible development of the Albanian lottery market was implemented. As a first product, Loto “6 nga 39” (Lotto “6 out of 39”) was launched on 8 April 2013. The first draw was conducted on Sunday, 21 April 2013, at 20.15h live on Albanian TV. As soon as in September 2013, Lotaria Kombëtare introduced the scratch-off tickets “Super Cash” and “Arka e Thesarit”. The seasonal scratch-off ticket “Surprizat e Festave” followed in November of the same year. With scratch-off tickets, we have launched a product that is very attractive to the local population and thus performs excellently. On 6 March 2014, the second draw for Loto “6 nga 39” was introduced. It is broadcast live on Thursdays at 20.15h. The successful range of scratch-off tickets was expanded by four new ticket series in 2014: In March, “Simbolet e Fatit” (“Lucky Symbols”) was launched. “Nje Det I Arte” (“Gold of the Sea”) followed in May and “Shesh-Besh” (“Backgammon”) in September. “Surprizat e Festave” (“Festive Surprise”) returned to the retail outlets in November. 40 Start of Fito Fito Based on the Austrian number lottery game ToiToiToi, Fito Fito was launched on 15 September 2014 in Albania. Fito Fito offers a daily draw and a fixed grand prize of ALL 700,000 (corresponds to approx. EUR 5,000). With a price of ALL 50 per pick, Fito Fito positions itself in the lower pricing segment and is thus more attractive for a wide public than Loto (ALL 100 per pick). 1st Responsible Gaming Conference Lotaria Kombëtare held the first Responsible Gaming Conference in Albania on 28 March 2014. The conference hall quickly filled with representatives of non-profit organisations and retail and cooperation partners, who followed the presentations and speeches of the renowned national and international experts. Journalists and camera teams of nine TV stations covered the event exclusively and comprehensively. The conference was opened by Board member Friedrich Stickler in his function as the President of the European Lotteries and Toto Association and the Austrian Ambassador in Tirana, Thomas Schnöll. Peter Simoner, CEO of Lotaria Kombëtare, explained in his speech the ethical and player protection-related principles that are practised by the entire Group every single day, and that are thus also in effect at Lotaria Kombëtare. Erion Veliaj, Minister for Social Welfare and Youth in A lbania emphasised in his speech that Lotaria Kombëtare is perceived as an exceptionally upright and reliable gaming operator in Albania with its player protection standards and is thus very welcome as a good example. In his keynote presentation, Professor Mark Griffiths (Nottingham Trent University, UK) gave an overview of the decisive parameters in the development of a gambling addiction. Renowned Austrian and Albanian speakers topped off the programme with their thematically diverse presentations. Annual Report Austrian Lotteries 2014 In the context of the well-attended conference, local media seized the opportunity to interview the keynote speakers, the Minister, as well as Board member Friedrich Stickler and CEO Peter Simoner. The high player protection standards of Austrian Lotteries are also binding for Lotaria Kombëtare in Albania and are consequently implemented by the people in charge of Responsible Gaming. Comprehensive training courses for all employees of the retail outlets are also part of the company’s player protection measures. Lotaria Kombëtare has about 70 employees; its headquarters is located in Tirana. The nation-wide distribution network already comprises more than 700 retail outlets. 41 As ................ I work out creative concepts for new products. The skills needed in my job include various different fields of activity. On the one hand, I need my creativity and my imagination and on the other hand, bald facts and figures are my constant companion at work. Our product planning and development is future-oriented and we leave nothing to chance. In this context, my ability to think strategically is needed. In contrast to that, I work closely with creative people. And when at the end of the day we have a product on the market that is still as popular as it was more than 20 years ago it makes me very proud. ? Am I W)a product manager X) an editor Y) an innovation manager The Financial Year 2014 Economic Framework Conditions Despite the projections for 2014, the Austrian economy was not able to pick up pace. While all signs were still pointing to an economic recovery at the beginning of the year, economic growth practically came to a halt in the second half of 2014. Overall, the gross domestic product only increased by 0.4 per cent year-on-year. Austria is thus one of Europe’s lower-growth countries. Comparative data: The aggregated economic output of the European Union increased by 1.3 per cent during the reporting year. A critical factor for the below-average dynamism of Austria was, among others, the reduced final demand in European buyer countries, like Italy or Germany in particular. However, the conflict between Russia and Ukraine also left its marks on Austria’s foreign business record. Even the significant increase of exports to China and the USA only partially compensated for the reduced demand in Europe. Overall, real growth of exports of goods declined to 1.2 per cent in 2014. In light of the difficult economic environment, business confidence became increasingly cloudy throughout the reporting year. The limited number of incoming orders not only led to reduced estimated sales; it also caused businesses to be more cautious with their investments. The gross fixed asset investments in 2014 increased by 1.4 per cent, however, those were primarily replacement investments. Capacity expansions, on the other hand, were rarely part of business agendas. However, private consumption turned out to be a stabilising factor for the economy during the reporting year: Despite the moderate development of incomes, the level of 2013 was not only maintained, but even exceeded slightly – concretely by 0.2 per cent. Similar to the year before, however, the purchasing decisions for durables were increasingly put aside or at least postponed, which is illustrated by the decrease of passenger car registrations by nearly 5 per cent. Proportionally more was spent on the other hand for training and continued education, as well as for recreation and leisure time (travelling, entertainment, cultural activities). The saving rate with 6.3 per cent of the available income was once again very low, which is not least due to the historically low level of interest rates in the euro area. 44 The general rise of prices in Austria sank perceptibly in 2014: The average inflation rate decreased from 2 per cent to 1.7 per cent year-on-year. Noticeable in this context is the fact that this is still – despite the decrease – the highest rate of price increases in the euro area. The main reason for this is found in the excessive rise in prices for food and services. Rental payments for apartments are also among the price drivers for the reporting year, whereas the development of fuel prices put a brake on the general inflation. For 2015, experts estimate another slight decrease of the inflation rate to 1.5 per cent, among others due to the lower oil prices. In terms of the purchasing power of the Austrian population, the low inflation has a positive effect: For the next year, the average purchasing power per capita is expected to increase by 0.2 per cent to roughly EUR 20,780 p.a. The tax reform for income taxes expected in Austria for 2015 could have another positive effect and contribute to promote consumption. The negative trend on the job market that had already been observed throughout the previous years was continued in 2014. This is shown in a continuously increased unemployment rate. The share of employable persons looking for work reached the 5%-mark in the reporting year (according to Eurostat definition) and is expected to climb to 5.3 per cent in 2015. On the one hand, the continuously increasing number of workers, especially persons that are not Austrian citizens, and on the other hand the limited economic dynamism can be identified as causes for this development: In 2015 as well, the domestic economy is only expected to grow by 0.5 per cent. However, the general financing situation of the public budget should wind down a little in the next year, as the budget deficit had increased to 3 per cent of the GDP in 2014 due to the measures to liquidate Hypo Alpe Adria (projected deficit for 2015: 2.4 per cent). Additionally, slightly stronger growth stimuli are expected from the European environment. In concrete terms, the economic performance of the EU-28 is expected to expand by 1.5 per cent. Annual Report Austrian Lotteries 2014 Development of Sales and Earnings With EUR 3,150.98 million, total sales of Austrian Lotteries have increased by 3.34 per cent year-on-year. This high level of sales can be attributed to increases in nearly all draw-based games, as well as the scratch-off tickets, and the sales plus of WINWIN (VLTs). EuroMillions achieved a plus of 5.42 per cent, which is among others due to three more Superpot following rounds than in 2013. During the six rounds following a Superpot in October, we even reached the maximum amount of EUR 190 million. Further, the “Anteilsschein” provided a positive stimulus. Lotto “6 out of 45” performed with a plus of 2.35 per cent year-on-year due to the jackpot development at the end of the year, the price adjustment in July and the new product features “TeamTipp” and “Anteilsschein”. Joker and Zahlenlotto have slightly exceeded their sales of 2013. The quick-pick expansion for ToiToiToi also had a positive effect on sales and lead to a plus of 2.13 per cent for this game. Only Toto had to register a loss of 10.8 per cent year-on-year, which can be ascribed to a lack of jackpot series in 2014. The scratch-off ticket sales have increased by 6.99 per cent as compared to 2013. This is mainly due to some outstandingly successful new ticket launches – in particular Super Gold and “Ein Leben lang Plus” (Win for Life Plus). Brieflos, i.e. break-open tickets, performed below previous year sales and saw a decline of 7.78 per cent. The fact that less ticket series were offered for sale than when the product range was expanded in 2013 is one of the main reasons for this development. Electronic lotteries (including Poker rake) on win2day fell below their sales level of the year before by 1.6 per cent. Above all, the strong online-gaming competition, the consumer restraint in the first half of 2014 and the Europewide decline in the Poker segment are responsible for the negative result. The net stakes of Lotto, Toto, Torwette, Zahlenlotto 1-90, Joker, ToiToiToi and EuroMillions result from the respective prices less administrative cost. In Toto and Torwette (football pools and correct score bet), 48 per cent of sales are paid out as prizes, whereas for Lotto and Joker the percentage is 48.8 and for EuroMillions 50 per cent. Total sales of the company for 2010-2014 in EUR million: 2,642.45 2,899.60 +9.7% 2,955.32 +1.9% 3,049.11 +3.2% 3,150.98 +3.3% 2010 2011 2012 2013 2014 3,000 2,500 2,000 1,500 1,000 500 Company tax payments from 2010-2014 in EUR million: 398.43 459.21 +15.3% 454.51 -1.0% 433.83 -4.6% 447.02 +3.0% 2010 2011 2012 2013 2014 400 300 200 100 * Year-on-year change WINWIN (VLTs) has exceeded its performance of the previous year by 15.19 per cent. The increase in sales is based on the good development of all outlets. In 2014, the total of winnings amounted to EUR 2,388.55 million (calculation based on all games of Austrian Lotteries). 45 The Financial Year 2014 Total sales 2014 in EUR sorted by games and year-on-year change: Sales 2014 Year-on-year change 586,376,137.78 +2.35% 8,066,998.95 -10.80% 993,903.70 +2.13% 10,069,672.30 -1.13% 339,981,892.80 +5.42% 18,765,344.00 +2.13% 4,055,973.00 +1.28% Joker 182,932,051.69 +0.72% Rubbellos 127,730,969.00 +6.99% Brieflos 22,988,735.00 -7.78% Klassenlotterie 31,345,806.00 -3.19% 1,179,383,695.59 -1.52% 3,325,708.60 -16.32% 634,958,113.97 +15.19% 3,150,975,002.38 +3.34% Game Lotto “6 aus 45”* Toto Torwette Bingo EuroMillions* ToiToiToi Zahlenlotto 1–90 win2day und Keno win2day Poker** WINWIN Total * including share fee **only rake EUR 447.02 million - tax payments in 2014 The total tax payments of Austrian Lotteries in the past year amounted to EUR 447.02 million, with gaming-related duties as well as income taxes and other taxes and duties being taken into account. Since the foundation of the company in 1986, more than EUR 9.82 billion in taxes was paid to the Republic of Austria. The gaming-related duties in the amount of EUR 434.40 million consisted of the licence fee of EUR 252.20 million, the gaming tax of EUR 175.77 million and the value added tax on VLT sales of EUR 6.40 million. The net stakes of Lotto “6 aus 45”, Toto, Torwette, Joker, and EuroMillions are all taxed with a licence fee of 18.5 per cent for the first EUR 400 million and of 27.5 per cent for all additional amounts. The licence fee for the Class 46 Lottery amounts to 2 per cent of the stakes, for Brieflos, scratch-off tickets, and ToiToiToi to 17.5 per cent, and for Digit Lotto 1–90, Bingo, and Keno 27.5 per cent. For the electronic lotteries on win2day, a licence fee amounting to 40 per cent of the gross gaming revenue, i.e. the difference between stakes and payout, is paid to the state. The gaming tax for all games of Austrian Lotteries – except for the electronic lotteries – amounts to 16 per cent of the stakes. For the electronic lotteries at WINWIN (VLTs), the gross gaming revenue is subject to a gaming tax of 10 per cent as federal tax plus a Provincial extra charge on this tax which amounts to up to 150 per cent. Further, since 1 January 2011 a value added tax on gross gaming revenue from electronic lotteries at WINWIN is paid, pursuant to UStG (Value Added Tax Act). Annual Report Austrian Lotteries 2014 Responsible Gaming By consequently transferring and providing knowledge, offering training measures and applying monitoring programmes, Austrian Lotteries is able to guarantee “Gaming with R esponsibility”. In 2014, more than 240 guests attended the 11th Responsible Gaming Academy, which offers the exchange of information that is so essential to player protection. Scratching open a scratch-off ticket or marking one’s personal lucky numbers on a lottery slip is supposed to be fun and shall not become a problem for our customers and gaming participants. Therefore, Austrian Lotteries has been developing and implementing measures and actions to actively counteract any possible problems that may arise due to gaming. Austrian Lotteries ensures compliance with the conditions of participation and informs players comprehensively on winning probabilities and the potential risks of gaming. In the development of new games, we consider player protection-relevant aspects regarding the game design and place exceptional value on well-trained retail partners and employees. These principles are deeply rooted in the mission statement and also strongly influence the business activities of Austrian Lotteries’ subsidiaries and affiliated companies. Austrian Lotteries is also highly dedicated to the protection of minors. To a significant extent, the key to success – offering “Games with Responsibility”– is in the hands of our employees. Mandatory training for new employees, as well as specialised events in the context of continued education and themed workshops for managers and people that are in close contact with customers, are a given. Certification according to the Responsible Gaming standards of the European Lotteries and Toto Association (EL), last obtained by Austrian Lotteries in 2012, is valid for three years. In order for the main certification to remain valid, at least one part of the certification has to be verified within the three-year period before an overall recertification can be conducted. In October 2014, this partial certification was conducted by BDO Auxilia Treuhand GmbH. It focussed on the fulfilment of the requirements in all categories. However, the audit also ensured that the already existing status is maintained. Responsible Gaming at our retail outlets and POS Children and adolescents have never been and will not be the target group for Austrian Lotteries’ games. According to various international studies on the topic, the initial contact with gaming should not take place too early. The voluntary self-restraint of Austrian Lotteries regarding the sale of lottery products – they may only be sold to persons aged 16 and over – has already been in place for six years. In this regard, our retail partners take on a central role in the protection of minors. They are backing our voluntary self-restraint. Compliance with this Responsible Gaming measure is monitored and audited by means of regular mystery shopping. Repeated violations lead up to a termination of the contract with the respective partner. To date, 21 contracts had to be terminated for this reason. The retail partners are personally trained in player protection once a year by our sales representatives in the context of the annual focus of information. Since 2012, we have also been conducting an annual training course on the online terminal at the retail outlets, which allows our partners to brush up on their player protection knowledge. Naturally, all employees of the retail outlets also have the possibility to complete the Responsible Gaming basic training courses via the terminal. The annual specific training course for all retail partners – the focus of information 2014 – was characterised by feedback to Responsible Gaming. Based on this intensive brush-up and survey, we deduce future core themes for the training courses in order to support our retail partners in their daily interaction with customers as best we can. Additionally, the retail-outlet magazine “Lotterien aktuell” (loosely translated: “Lotteries today”) covers Responsible Gaming topics in each issue. 47 The Financial Year 2014 Responsible Gaming training courses for our retail partners With the slogan “games of chance are not a child’s play”, Austrian Lotteries again participated in the “Annual Holiday Campaign” 2014 of the National Council on Problem Gambling and the International Centre for Youth Gambling Problems and High-Risk Behaviors of McGill University, Canada. The core message of the annual campaign is that minors do not constitute a target group for lottery products and that adults should not purchase lottery products as presents for children and adolescents. Free hotline 0800 202 304 Especially when dealing with such a sensitive topic as player protection, it has to be self-evident for gaming operators to be easily reachable and to offer professional information, assistance and solutions. Therefore, the overall Responsible Gaming hotline is available for all questions regarding player protection and can be reached free of charge throughout Austria: 0800 202 304. Website spiele-mit-verantwortung.at offers comprehensive information regarding player protection The information on spiele-mit-verantwortung.at is delivered in a customer-friendly way and ensures transparent and easy access to the contents. The site places great value on the visual presentation of the ten recommendations for playing responsibly. On the cover page, visitors are already pointed to the free player protection hotline in addition to the recommendations and various direct links to an anonymous self-test and counselling institutions in Austria, where people affected by gambling 48 addiction and their relatives will receive qualified advice and treatment. Additionally, the page offers information on the potential dangers and risks, the legal situation, gambling addiction and important contacts and addresses. Information on winning probabilities and payout rates for the respective games are provided as well. Responsible Gaming with win2day, WINWIN and tipp3 From the very beginning, Austrian Lotteries and Casinos Austria have also assigned a high priority level to the protection of minors and to the protection against excessive gambling on the Internet gaming platform win2day and at WINWIN locations. For win2day, WINWIN, and tipp3, the minimum age for playing is 18 years. On win2day, as well as at WINWIN and on tipp3.at, we are employing special Responsible Gaming features, which provide additional support to our customers regarding their management of time and money and help to limit the maximum playing time. The protection of minors and an effective access control for online games pose an enormous challenge. On the win2day gaming platform, the corresponding measures are taken right from the start and improved continuously. Thus, in 2013 MENTOR was installed on win2day, allowing the users to keep an eye on their personal online gaming behaviour. MENTOR is a player protection tool based on the most recent findings from research on gambling addiction. It offers visually appealing graphics Annual Report Austrian Lotteries 2014 autumn 2014, the modular and interdisciplinary training programme for WINWIN employees was conducted in cooperation with the “Kompetenzzentrum für Verhaltensabhängigikeiten und Selbstwirksamkeit” (Competence Centre for Behavioural Dependencies and Self-Efficacy). The objective of the two-module training programme (each module takes two days) is to inform, relieve and support the employees in their interaction with at-risk players, to provide guidance for players with risky, problematic and/or pathological gambling behaviour as well as the basic psychological and legal knowledge required for this position. WINWIN thus has a sufficient number of these specially trained employees stationed in all outlets in Austria. They are qualified to provide counselling or interview their guests, if necessary. illustrating the user’s gaming behaviour. The user thus has the possibility to visualise his/her own gaming progress in terms of money and time. Moreover, the customers of win2day receive assistance in their time management with slot games and video-poker games by means of online messages. In 2014, Austrian Lotteries once again was awarded the certificate for social responsibility 2014/15 for win2day by GamCare, London, UK (gamcare.org.uk) – the national centre for information, counselling and practical assistance regarding the social impact of gambling in Great Britain. This institution conducts annual certifications for player protection and social responsibility. With this certificate, GamCare once more confirms the consequent implementation of the “GamCare Player Protection Code of Practice for Remote Gambling” throughout the range of games available on win2day. Due to Art. 25 para. 3, as amended, of the Austrian Gaming Act (GSpG) coming into effect as of 1 January 2015, specially trained employees have to be present at the WINWIN outlets. In order to fulfil the function of such a specially trained employee, they have to complete an intensive Responsible Gaming training programme. In In May, there were two additional specific training courses for WINWIN employees. Together with Doris Malischnig, Head of the Group’s Prevention Department, the trainer, Doctor Rudolf Morawetz from the psychological emergency service Austria (NDÖ), worked out a guide for correctly handling emotionally strained customers. As an additional player protection measure, the WINWIN outlets were reviewed by means of mystery shopping in 2014. As of October 2014, the first WINWIN player cards were issued in order to comply with the new requirements of the Gaming Act, coming into effect on 1 January 2015. tipp3 focused on the continued training of its tipp3 promoters in 2014. They received comprehensive information regarding how to act preventively in the sports betting segment. Moreover, counselling sessions were held with retail partners and customers. Responsible advertising In past years as well as today, Austrian Lotteries has been voluntarily striving for highest ethical standards in terms of the design of its advertising activities. The “Code of Conduct Responsible Advertising” comprises eleven principles and assures the compliance of advertising and sales activities with high ethical standards as well as that advertising and marketing communications do not address 49 The Financial Year 2014 All advertising activities are in line with the Code of Conduct Responsible Advertising persons who belong to at-risk groups in terms of problematic gambling behaviour. The consistent and all-over compliance with the Code of Conduct Responsible Advertising is assured by a process which has been implemented throughout the entire Group. All advertising activities are examined and subject to approval by the Corporate Function Responsible Gaming, Advertising & Sponsoring before they are commissioned and implemented. Top experts from all over the world at the 11th Responsible Gaming Academy On 22 May 2014, the Responsible Gaming Academy took place for the 11th time. The event initiated and hosted by Casinos Austria and Austrian Lotteries once more brought international player-protection experts to Studio 44 and marked a new visitor record with a total of 240 participants. Aside from employees of the Group, Herbert Beck, Head of Responsible Gaming, Advertising & Sponsoring, once again welcomed representatives of federal ministries and employees of renowned gambling addiction counselling and therapy institutions. To provide training for employees, but also and above all to further the exchange with national and international experts, the Group first initiated this educational event in 2004. By now, it may well be called the most important professional conference on this topic in Austria. For the 2014 event, we were once again able to gain some of world-renowned keynote speakers for the most current topics. 50 Professor Jeffrey L. Derevensky from the Canadian McGill University spoke about the often underestimated potential for addiction of social media games for adolescents. Professor Per Binde from the University of Goteborg in Sweden commented on the topic of advertising for games of chance. Doctor Tobias Hayer from the University of Bremen gave a summary of the potential dangers of sports betting, Professor Herwig Scholz from the “Kompetenzzentrum für Verhaltensabhängigkeit und Selbstwirksamkeit” (Competence Centre for Behavioural Dependencies and Self-Efficacy) in Treffen and Doris Malischnig, Head of the Prevention Department, introduced “innovative concepts for continued education and the assurance of competence” taught in the modular training courses for specially trained employees in autumn 2014. Professor Neven Ricijas from the University of Zagreb gave a report on gambling among youths in Croatia and Doctor Doris Kohl, long-time head of the staff unit for player protection at the Federal Ministry of Finance and currently judge at the Federal Administrative Court in Vienna, provided an overview of the regulatory framework of games of chance in Austria. In his opening address, Friedrich Stickler, Board member of Austrian Lotteries and President of the European Lottery Association, focussed on the lack of consistency in the regulation of games of chance: “There is a great imbalance between very strictly regulated, legal, licensed operators on the one hand, and a gigantic market of illegal providers, who, on the other hand, may conduct their business basically unhindered. There is an urgent need for action in this context.” Annual Report Austrian Lotteries 2014 With its so far more than 1,800 participants and more than 50 high-profile speakers, the Responsible Gaming Academy is an important pillar of the overall player protection concept at Casinos Austria and Austrian Lotteries. Left: Topclass speakers at the 11th Responsible Gaming Academy; from left to right: Professor Per Once again, the Group has set new benchmarks with this event. As the only Austrian gaming provider, the individual companies are also certified according to internationally recognised Responsible Gaming guidelines, for example by the European Lottery Association, the World Lottery Association and, as the first casino operator ever worldwide, also by the European Casino Association. Binde, Doctor Tobias Hayer, Professor Neven Ricijaš, Professor Herwig Scholz, Board Member Friedrich Stickler, Doris Malischnig, Professor Jeffrey L. D erevensky, Herbert Beck Top: Professor Neven Ricijaš gave an account on gambling among youth in Croatia 51 The Financial Year 2014 Corporate Social Responsibility For Austrian Lotteries, corporate social responsibility forms the basis for voluntarily integrating social, economic, and environmental concerns into the business activities of the company. It is a logical next step for Austrian Lotteries to expand its commitment and care in its corporate social responsibility (CSR). The company’s actions are based on social and environmental responsibility. Exceeding the legal regulations and obligations in this matter, we invest more in the relationship to our stakeholders. For the company, CSR reaches far beyond the gaming industry-specific essential subject of “Responsible Gaming”. In September 2014, the second joint CSR report of Casinos Austria and Austrian Lotteries was presented. The report has been created in line with the GRI (Global Reporting Initiative) guidelines, which define the indicators for the three pillars of sustainability – economy, ecology and social aspects. The preparation and creation of sustainability reports pursuant to this internationally accepted and standardised GRI guideline facilitates a comparison of the performance of companies regarding social, environmental and economic concerns. Moreover, this report served as a progress report of Austrian Lotteries in the context of the UN Global Compact. 52 By joining the UN Global Compact in February 2011 and committing to the ten principles of this compact, Austrian Lotteries has made another clear, unambiguous statement regarding its corporate social responsibility. As signatory to the UN Global Compact, Austrian Lotteries commits to absolute compliance with the ten principles pertaining to work standards and rights, human rights, environment, and anti-corruption. However, Austrian Lotteries does not only plan to merely adhere to the ten principles. Rather, the company wishes to make an active contribution to the further development of these principles. As it is essential to involve, or at least inform, as many employees as possible in and on a project in order to practice CSR with full commitment within a company, the focus is placed more and more on the involvement of employees in corresponding projects. In 2014, the internal CSR forum was founded. In this forum, employees from various Business Units and Corporate Functions meet on a monthly basis to exchange information and opinions on the topic of CSR and to initiate CSR projects. The minutes and documents of these meetings are available to all employees via the internal network and can also be commented by them. In 2014, the project of our Group’s employees cooking together for homeless people, which was started in 2010, has been repeated nearly every month at the homeless shelter “Gruft” and later also at the “s’Häferl”, both located in Vienna. Annual Report Austrian Lotteries 2014 EUR 1.2 billion for Sports Supporting sports is a socio-political mission that Austrian L otteries has been fulfilling since 1986. During the past 28 years, a total of EUR 1,229.22 million has been contributed to the “Besondere Bundes-Sportförderung” (special federal funding of sports). In the context of this sports funding as it is stipulated in the Austrian Gaming Act, Austrian Lotteries significantly contributes to the financing of sports in Austria. Especially the “grass-roots sport”, which has an important socio-political significance, benefits from this solidarity arrangement. By limiting or even omitting the financial means, numerous sports clubs would be deprived of the basis of their activities. As a consequence, the loss of variety and diversity in sports would be imminent – the existence of many activities serving the public good would be jeopardised. More than two decades ago, the close connection between Toto and football, in combination with the special commitment to youth sports, formed the basis for the youth projects “Internationaler Jugend Toto Cup” (an annual four-nations tournament for national under-17 teams) and “Toto Jugendliga” (Austria-wide junior championship), which have since then become major events in football. These projects were successfully continued in 2014. The “Internationale Jugend-Toto-Cup” took place for the 26th time and the “Toto Jugendliga” entered its 25th season. With the amendment of the Gaming Act dated 19 July 2010 (“GSpG-Novelle 2008”) the federal government annually – starting with the year 2011 – provides the amount of EUR 80 million from the taxes paid by the licensee pursuant to Art. 14 to the promotion and funding of sports. This amount shall be increased every year, for the first time in 2013, to the extent to which the federal gaming-related revenue obtained from the holder of the licence according to Art. 14 has increased in the last year as compared to the year before that. With the amendment of the Bundes-Sportförderungsgesetz (Federal Sport Promotion Act) in 2013, the new federal sport promotion fund was established, which is in charge of handling the funding of Austrian sports associations. Two professional advisory committees with independent experts on mass sports and topclass sports ensure that the funds are used in a target- oriented manner. The governing body of the fund is the “Bundes-Sportkonferenz” (Federal Conference on Sport) which includes representatives of the Federal Ministry of Defence and Sport and the Federal Sports Organisation. The legal base for the launch of Toto in Austria was the “Sporttoto-Gesetz” (Sport and Toto Act) which was adopted by the National Council in 1948. Toto was launched in the following year in order to generate the financial means required for the re-establishment of the Austrian sport after the war. Aiming to secure the financial basis of the promotion of sports after the introduction of Lotto and the takeover of Toto by Austrian Lotteries, a clause guaranteeing the annual funding of sports based on tax revenue from Lotto and Toto was included in the Austrian Gaming Act. 53 The Financial Year 2014 Sponsorship Since its foundation, Austrian Lotteries has been dedicating its activities to Austria – the state as well as its people. In this context, numerous d ifferent organisations and institutions received support and funding for the realisation of their projects. The company’s commitment to sponsorship programmes is as diversified as Austrian Lotteries’ product portfolio. Numerous projects with a high degree of benefit to the public are promoted and funded. In this context, it is of high importance to Austrian Lotteries that these projects pursue long-term socio-political objectives. Sollenau meets Grafenegg Among these long-standing projects are the support of “Lebenshilfe Niederösterreich” (Life Aid Lower Austria) – in particular the Karl Ryker Village in Sollenau – and the Grafenegg Music Festival. Following the sponsorship goal of making culture available to everybody, “Sollenau meets Grafenegg” has been the embodiment of inclusion in a particularly harmonic manner. Thus Austrian Lotteries once again invited the inhabitants of the Karl Ryker Village to a very special concert night. Every year, this event, set in the fantastic ambience of the castle grounds of Grafenegg, is a special experience Inclusion – all people living together as equals – is one of the main concerns of organisations like Lebenshilfe (Life Aid). By realising various different projects, Austrian Lotteries as well has continued to take steps in this direction. A very big step was made in 2013. By introducing the Austrian Inclusion Day, this important issue received its very own event that was successfully repeated in 2014. Under the slogan “Working Together Without Barriers” Austrian Lotteries organised and hosted the Board Member Bettina Glatz-Kremsner and Chairman The 2nd Austrian Inclusion Day was themed of the Board Karl Stoss with the inhabitants of the “Working Together Without Barriers” Karl Ryker Village in Sollenau 54 for all guests invited which not only included the visitors from the Karl Ryker Village, but also high-profile personalities like the governor of Lower Austria Erwin Pröll, the Austrian ambassador to Hungary Wolfgang Waldner and the curator of the Vienna Technical Museum. In 2014, the wonderful music of the Saint Petersburg Philharmonic Orchestra was the perfect way to unite these two – seemingly so different – worlds. Living together as equals Annual Report Austrian Lotteries 2014 Chairman Karl Stoss hands the “Athlete with a Heart” award to Mirna Jukic‘ 2nd Austrian Inclusion Day on 17 November 2014 at the Congress Centre of “Messe Wien” (Vienna exhibition centre). The event focused on the world of employment and work, as the facts in this regard are rather disillusioning: The number of unemployed people with disabilities has increased five times as much as the general unemployment rate during the past eight years. In 2014 as well, numerous disability organisations, led by the “ÖAR”– umbrella organisation of the Austrian disability associations, participated as partners of the event and were mainly responsible for the programme. Roughly 400 visitors participated in the four workshops, attended the speech of the Minister of Social Affairs Rudolf Hundstorfer and the psychologist Doctor Georg Fraberger and followed an expert panel discussion moderated by Barbara Stöckl. Simultania Art Award In the context of its social commitment, Austrian Lotteries supported the Simultania Austrian Art Award last year, which was themed “We! My friend and me!”. Participation was possible for people from all over Austria. Artists and their carers in 32 day-care centres and painting studios welcomed this opportunity enthusiastically. For the first time ever, paintings from all Austrian provinces were submitted. The jury consisting of art experts and renowned artists chose eleven finalists and three award winners out of 182 anonymously presented artworks for the Simultania Art Award 2014. The first place went to Davis Ndombasi of the Styrian painting studio “Randkunst”. The eleven ranked paintings and the twelfth one by Elfriede Höller from the “ARTelier Leiblachtal” in Vorarlberg, which was determined in an online-voting process, have been compiled in a calendar that can be ordered at www.simultania.at. Athlete with a Heart Mirna Jukic, two-time “Athlete of the Year” was honoured at the Sporthilfe Lotterien Gala “Night of Sports”: In late October, the former top-class swimmer won the trophy in the category “Athlete with a Heart” as her initiative “Mirno More” received the most votes in the public online voting. The social commitment and involvement of an athlete is the decisive factor in his or her nomination for the “Athlete with a Heart”. Therefore, goals, scores, metres or seconds will not count, instead the award aims to honour fair play, civil courage and the willingness to help in humanitarian and social spheres. Ms Jukic received a cheque over EUR 5,000 for her charity project by Austrian Lotteries. “Mirno More” is the largest sailing project for socially disadvantaged children in the world. Simultania stands for “fun, integration, growing together, learning from each other, loving care, tolerance, activity, never giving up, I am what I am, respectful interaction”. 55 The Financial Year 2014 From the zoo to the museum and to the theatre – in 2014 there were 13 Lotteries Days Going to the museum, the theatre or even to the zoo with a scratch-off ticket or a lottery ticket? Austrian Lotteries made this possible again in 2014, with its so-called Lotteries Days. These extraordinary action days have been established for our customers and have been growing increasingly popular since the initial launch in June 2010. On these special days, gaming participants gain free access to the respective participating location (museum, gallery, etc.) by presenting any product of Austrian Lotteries. It is thus sufficient to have a lottery ticket (Lotto, Toto, Bingo), a Brieflos, or a scratch-off ticket. These tickets do not need to be part of the current round or ticket series. In 2014 there were six Lotteries Days in museums, one at the Schönbrunn Zoo, four in theatres, as well as one at the Cultural Summer Laxenburg and one at the Theatre Summer Parndorf. About 12,700 visitors benefited from the Lotteries Days in 2014. Media support The media support represents a special form of sponsorship. Until 1986, various organisations like “Österreichische Kinderhilfe” (Austrian Children’s Aid), “Österreichische Sporthilfe” (Austrian Sports Aid), or “Österreichische Seniorenhilfe” (Austrian Senior Citizen Aid) had generated their financial means by way of donations as well as through carrying out a number lottery with non-cash prizes to win. With the introduction of Lotto “6 out of 45” in September 1986, a virtually unbeatable competitor entered the stage. Therefore, Austrian Lotteries concluded several agreements with the aforementioned organisations in order to cover their financial needs. Selected projects in 2014 Nature and the environment • H ohe Tauern National Park • Österreichischer Alpenschutzverband (Austrian association for the protection of the Alps) • Schönbrunner Tiergarten (Schönbrunn Zoo) with Lotteries Day • T ierQuartier Wien (new animal sanctuary in Vienna) • W WF Austria • S alzburg Zoo/adoption of ounce “Lotti” Health • “ Living with Cancer” campaign • Debra Austria / Research IMBA (Institute of Molecular Biotechnology) • Austrian Mountain Rescue Service • Paracelsus University Salzburg Humanitarian/Social • 2 nd Austrian Inclusion Day “Working Together W ithout Barriers” • “Licht ins Dunkel” (“light up the darkness”) campaign • “Ein Funken Wärme” Campaign (“a spark of warmth”) initiated by the Kronenzeitung (an Austrian news paper) and Caritas 56 Annual Report Austrian Lotteries 2014 • A uftakt – Assisted Living • Charity concert for the “Make a Wish Foundation” • Charity gala “Der andere Muttertag” (“a different mother’s day”) for the Graz women’s shelters • C aritas Vienna - Immanuel House for mothers and children in need • C aritas Graz – Homeless World Cup • Diakonie Austria / garden courtyard De La Tour • Die Presse – Austria14 / category “humanitarian commitment” • Hilfswerk Austria (Austrian relief organisation) • Hospice Austria – counselling and competence centre for hospice and palliative care • Integrative cultural festival “Sichtwechsel” (“change of view”) • Lebenshilfe Niederösterreich (Life Aid Lower Austria) – rolling warm buffet • Red Noses anniversary gala • Simultania Art Award of Simultania Liechtenstein – association to support people with disabilities and their environment • Special Olympics Austria / bronze sponsor and summer games “heartbeat” • MiA Association – Migrant Award for integration and female migrants in Austria • A ssociation “RollOn Austria” • Business for Integration society “Vienna Courage – our diverCITY” • W ien Work – integrative companies Sports • 6 6 th International Austrian Cycling Race • Golf Club Austria for people with disabilities – power golfer • K rone “Footballer of the year – Young star” • Österreichische Sporthilfe (Austrian Sports Aid) • Austrian Olympic Committee • Austrian Paralympic Committee • Österreichischer Betriebssport Verband (Austrian association of company sports teams) • Athlete with a heart, awarding at the Lotteries gala “Night of Sports” Arts and Culture • A lbertina – exhibition “Joan Miró” with Lotteries Day • Donauinselfest (Danube Island Festival) • European Theatre Night • “Feuerseele – Sie kämpfte für den Frieden“ stage play about Berta von Suttner with Lotteries Day • Grafenegg Festival • Joanneum Graz – annual ticket • Kunsthistorisches Museum Wien (Vienna Art History Museum Vienna) – annual ticket with Lotteries Day • Laxenburg Cultural Summer – Lotteries Day “La belle Hélène” • MAK – Austrian Museum of Applied Arts / Contemporary Art with Lotteries Day • MuseumsQuartier Wien (Vienna museum district) with Lotteries Day • Naturhistorisches Museum Wien (Vienna Museum of Natural History) – annual ticket with Lotteries Day • Nestroy – the Vienna theatre award / audience award • Austrian National Library – long-term conservation of the books in the State Hall to prepare for “Austria Books online” • Vienna Technical Museum with Lotteries Day • Josefstadt Theatre “Kunst” (“Art”) with Lotteries Day • Parndorf Theatre Summer with Lotteries Day sneak preview of “Der böse Geist Lumpazivagabundus” by Johann Nestroy • Vienna Volksoper (People’s Opera) with Lotteries Day “Guys and Dolls” • Vienna Volkstheater (People’s Theatre) with Lotteries Day Economy, Science and Research • • • • lumni Club/University of Vienna A Education initiative “Teach for Austria” European Forum Alpbach Julius Raab Foundations – study project regarding the responsibility of Austrian businesses • Verein zur Förderung des Journalismus in NÖ (association to promote journalism in Lower Austria) 57 As ................ I know all our games down to the smallest detail. Every day, I deal with at least 20 different personalities and their needs and requests. At the same time, I also have to convey the specifications and requirements of my company, conduct training courses and make sure that rules and guidelines are adhered to. The insight into human nature and excellent communicational skills are the basic requirements for my work. How ever, administrative and organisational tasks are also part of the job. And one thing is for sure: I can explain every single product of Austrian Lotteries down to the smallest detail. ? Am I N) a sales & event coordinator O) a sales representative P) a retail outlet manager The Financial Year 2014 Security and Safety Austrian Lotteries has implemented a comprehensive and integrated security concept in order to ensure the availability, integrity and confidentiality of business processes and systems. By participating in the cyber-security simulation game 2014 organised by the Austrian Board of Trustees for Security and Safety (KSÖ), we were able to test the effectiveness of crisis plans in case of an actual emergency. The security pertaining to the handling of games is a central component of the company’s philosophy. In line with the principles of our security policy the range of gaming products is constantly enhanced and the most up-to-date technology is employed. A cross-divisional Security Committee ensures the adherence to all security guidelines and work instructions, and provides for the continuous improvement of security standards within the Casinos Austria and Austrian Lotteries Group. Valuable insights gained in the cyber-security simulation game European businesses and authorities are threatened and attacked by cyber-criminals from a fictional state. The media have started to cover the cyber-attack and in social media events start to overturn. That was the scenario for the cyber-security simulation game 2014 which was organised by the KSÖ in early December 2014. The Group’s security policy aims to: • conduct the games offered as well as the related business procedures in a proper and consistent way • make sure that every gaming participant and guest has the same chances of winning, and to prevent any kind of manipulations of games • provide all of the Group’s premises with the appropriate means of protecting the lives and health of gaming participants, guests, and other customers • ensure the observance of legal and Group-wide regulations and requirements • guarantee the availability, confidentiality, and integrity of tangible and intangible assets and that authorised persons are able to use these assets if necessary • avoid, and if avoidance is not possible, detect and remedy the loss or the forgery of information, information systems and data carriers • make sure that information cannot be accessed by unauthorised parties or used for unauthorised purposes • ensure the provision of training courses regarding the topics of security and safety to all employees and that all employees complete these trainings Security in the handling of or our games is a central part of the company’s philosophy. Two independent data centres take account of this security obejctive. 60 Annual Report Austrian Lotteries 2014 The cyber-security core group of the KSÖ hosted the event on the premises of WKO (Austrian Economic Chamber) in order to rehearse for an emergency and to jointly overcome a Europe-wide crisis that also affects Austrian businesses. The scenario involved attacks on businesses with so-called “critical infrastructures”. In the introductory training programme “safe & healthy – healthy & safe”, 69 people (including holiday workers and temporary employees) were trained. The topics included ergonomics at the workplace, non-smoker protection, first-aid organisation, “falling correctly”, “using ladders and climbing aids”, as well as “lifting and carrying correctly”. The objectives of the exercise were: • E xperiencing governmental and private cooperation when being affected by cyber-security incidents • Demonstrating and optimising the coordination capabilities of governmental and private emergency and crisis management • Jointly planning technical, legal, communicational and organisational measures in work groups • Creating an awareness for courses of action in case of cyber-security incidents The challenge was to coordinate the interests of one’s own business (implementation of the crisis scenario) with the interests of the community of all businesses affected under enormous pressure of time. The team of the Casinos Austria and Austrian Lotteries Group was on the one hand able to provide valuable input in all work groups and on the other hand gained valuable insights, especially regarding a joint approach to the crisis. Safe & healthy working environment The legal requirements regarding the subjects of industrial safety, fire protection, and waste management form the basis for all of Austrian Lotteries’ related actions and measures. Measures exceeding the legal scope are taken if it appears reasonable in the context of the employees’ safety and health. A total of 99 staff members (including holiday workers and temporary employees) received information about fire safety regulations at our company in 2014. 61 The Financial Year 2014 Employees Austrian Lotteries stands for an attractive working environment that promotes a company culture of open communication, variety, and diversity. In 2014, the company achieved the full certification for “berufundfamilie” (Job and Family) and reached the 1st place among Austria’s apprenticeship programmes in the “Place to Perform” ranking. The objective of our personnel policy is to quickly react to new industrial, economic, and social challenges and to contribute to the competitiveness of the company, to develop new products and to tap new markets by employing a highly productive workforce. Next to respecting the personality of each individual employee, our objectives also require the provision of the best possible working conditions, the individual promotion of abilities, as well as a harmonic work-life balance, health, and the compatibility of job and family. The professional and personal development is facilitated through targeted development plans and the corresponding offer of continued education and vocational training. Management positions are filled by internal staff members wherever and whenever possible. By using diverse working time schemes including flexible working time without core hours, part-time, teleworking, partial retirement, parental part-time, as well as educational leaves (sabbaticals), we support our employees’ flexibility as well as their willingness and readiness to work. The company pays attention to carefully selecting future employees and invests in their initial training and integration. A value-creation oriented HR management involves a professional and company-specific development of the staff and the organisation. By means of innovative performance, development and education tools for employees, Austrian Lotteries is well-prepared to face the challenges posed by the environment and the market. The Casinos & Lotteries Academy, standing for the qualification of employees and managers, information about company-specific topics and the exchange of experiences and knowledge by internal trainers and experts, is part of this development programme. The annual average of employees in 2014 was 532 (fulltime equivalents on an annual average). 62 Austrian Lotteries becomes fully certified according to “berufundfamilie” standards Doctor Sophie Karmasin, Austrian Minister for Family and Youth, awarded Austrian Lotteries with the quality label “berufundfamilie” (Job and Family) in mid-November 2014. In order to achieve this prestigious certification, the company has to undergo an audit under the same name, which has been initiated by the Family Ministry. Thereby, measures to make the individual workplace as family-friendly as possible are systematically worked out, implemented and reviewed. By means of an employee-friendly and family-oriented business philosophy, the company supports its employees in creating a harmonic balance between job and family and in combining these two important areas of life. After receiving the basic certificate in 2011, Austrian Lotteries has now been awarded with the full certificate for its commitment. The company offers its employees among others a flexible life-stage model (full-time and part-time), a so-called roadmap with information and assistance for parental leave, an annual family business breakfast for employees on parental leave and in-house childcare with Flying Nannies during school holidays and bridge days. All measures and actions in the context of the “berufundfamilie” audit are taken for the benefit of all employees of the Group. Corporate volunteering Under the slogan “Good for Austria”, in April 2013 the Group started a corporate volunteering programme for all employees throughout Austria. Corporate volunteering is an internationally accepted term and describes the promotion of employees’ social commitment for charitable purposes. As a result of the audit “berufundfamilie”, Austrian Lotteries offers each employee the opportunity to use one workday per year for social projects. The focus of this Annual Report Austrian Lotteries 2014 programme is on people. Whether one wants to spend the day with senior citizens, handicapped people, children or other people in need, or one wishes to contribute handicraft skills. In this programme, Austrian Lotteries has been cooperating with long-standing partners like Caritas, Lebenshilfe, the social supermarket, the “Wiener Tafel” (an association for the social transfer of food to the poor), or the Austrian Red Cross Organisation. These organisations are constantly in need for support for events, trips or help with maintenance and renovation works. All in all, 165 employees used one day of their worktime for good causes. It is also popular for teams to use this opportunity to help others together. Health should not be a gamble To evaluate psychological strains at the workplace, a company-wide task force was created in 2013 to work out a standardised approach together with external work psychologists. After a pilot phase in the first and second quarters of 2014, the evaluation was carried out in autumn 2014. The analysis of results and consulting on the next steps is planned for the first half of 2015. The health offer for employees is based on the three pillars of nutrition, exercise and mental health. In complementation of this, the company offers back and spine strengthening gymnastic courses, yoga and Pilates. Target agreement Place to Perform – 1st place for apprenticeship programme The apprenticeship programme of Austrian Lotteries was also honoured in 2014. In the context of the “Place to Perform” study, uniforce Consulting GmbH evaluated apprenticeships in Austria for the very first time. Roughly 550 apprentices from various Austrian companies participated in the survey and evaluated their vocational training company in five categories (work, social environment, working environment, aspects of learning, satisfaction & motivation). In the resulting ranking, Austrian Lotteries made it to the top of the list, followed by ÖBB Personenverkehr AG and Erste Bank der österreichischen Sparkassen AG. Participating in the study was a good opportunity for Austrian Lotteries to receive an external review about how the apprenticeship programme is perceived and where there might be potentials for improvement. Since September 1999, the company has been offering the opportunity to train as an apprentice office clerk. For young people, we have more recently, in September 2012, introduced a technology-based apprenticeship in the field of information technologies at Austrian Lotteries. The success of a business is the combined effort of each individual employee. The more these efforts follow a common direction, the more efficient the organisation. One instrument to achieve this is a structured one-onone talk between the employee and his/her direct superior with the purpose of defining targets and objectives for the next period together and to assess the individual performance. The performance management – the structured target agreement – is an important cornerstone of constructive, transparent and trusting cooperation. It is a useful tool for exchanging and taking stock of information regarding performance expectations, actual performance, strengths and fields of learning, priority tasks, targets, the work situation, training standards, general expectations and interests. Employees and supervisors have the opportunity to provide mutual feedback and to plan specific measures for the professional development. Thereby, performance management contributes to sustainably ensure the success of the company. In the context of Career’s Best Recruiters, more than 500 Austrian businesses are tested annually, based on the criteria of recruiting presence, online job ads & markets, the handling of applicants and the feedback from applicants. Austrian Lotteries is proud to have been awarded the silver quality label for 2014/15. 63 The Financial Year 2014 Sales & Distribution With its distribution organisation, Austrian Lotteries offers a wide range of services for all retail partners. In 2014, the introduction of the “TeamTipp” and the “Anteilsschein” called for in-depth product training. The distribution organisation forms the link between Austrian Lotteries’ headquarters and its retail partners. Our sales office employees administrate and process the data and thus create the basis for all further internal processes. All requests and actions regarding the establishment, transfer, and close-down of retail outlet locations are handled together with the sales representatives. In addition to the regular constant supporting of retail partners, the tasks of our sales representatives also include the implementation of all marketing and distributional measures like promotions, trainings, and product launches. All of Austrian Lotteries’ business activities are coordinated with its sales representatives. The resulting distributional operations are worked out together. A fresh breeze for 2014 Under the motto “A fresh breeze”, the competence cup of Austrian Lotteries started in the spring of 2014. The objective was to expand and reinforce the knowledge of retail outlet staff regarding the sale of lottery products. This knowledge programme offered several benefits to the participants: On the one hand, they were able to apply the knowledge gained in their daily business, and on the other hand, they had the chance to win the main prize – an educational trip to Tuscany. Roughly 16,000 people in about 5,200 retail outlets were invited to participate in the competence cup 2014. The programme consisted of three knowledge rounds. They were carried out in March, June and October and each focussed on a different topic. Special value was placed on the protection of minors and Responsible Gaming throughout the entire competition. By means of active contribution, attentively reading brochures and completing questionnaires, the participants were able to collect scores. The top 1000 of each round were rewarded with non-cash prizes. 64 After the third round, the 35 winners of the study trip to Tuscany were determined. All participants who completed all three rounds received a personal certificate as an award for their successful participation. New exterior signage for the retail outlets After rolling out the new Micro terminals in 2013, a basically homogeneous distribution network was achieved – all retail outlets offer draw-based games. This also called for a standardised exterior signage that is recognisable to our customers, even from a distance. The distinct exterior signage was realised by means of the long-term approved illuminated and unlit logo bars. Especially for infrequent players, this form of exterior labelling takes on a very important role for the recognition value. As the existing exterior signs became increasingly harder to maintain and the lamps used were no longer standard, a designer was commissioned to create a draft for a new, more modern exterior signage in 2013. One of the targets was to use the new, energy-saving LED technology for the illuminated signs and to reduce the maintenance requirement for these lamps, due to their prolonged lifespan. Production of the new signs was realised in 2014. At the same time, our sales representatives began taking orders for the new signs by the retail outlets. The roll-out began in autumn 2014 and will continue in 2015. The new retail outlets equipped with Micro terminals will take priority in the roll-out. However, already existing exterior signs will be replaced as well - one by one. Product training for the Football World Cup Together with tipp3, our sales representatives implemented training courses that focussed on the Football World Cup 2014. Aside from to the general World Cup core topic, additional information events for retail partners were organised in order to reinforce the respective product knowledge and to create an ideal basis for selling. Annual Report Austrian Lotteries 2014 Introduction of “TeamTipp” and “Anteilsschein” The comprehensive training courses for the “TeamTipp” in Lotto, EuroMillions and Toto, as well as for the “Anteilsschein” in Lotto and EuroMillions, were prepared by the sales office team. First our sales representatives were trained regarding the new products, who then conducted the training courses for our retail outlets. The complexity of the new possibilities to participate called for intensive training in theory and practice. partners assume a central role in the realisation and implementation of the Responsible Gaming principle. Based on several training courses as well as on their daily business routine, our retail partners are aware of the principles of Responsible Gaming and the responsible handling of customers is a natural aspect of their business. The Managing Board of Austrian Lotteries would like to thank all retail partners and their employees for the excellent cooperation and partnership. Distribution network Placing bets digitally with the tipp3 tippBox With the digital tippBox, tipp3 offers a new generation of betting at the retail outlets. As soon as in late November, the first ten devices were installed in Vienna. By March 2015, 300 of them are planned to be installed throughout all of Austria. Thanks to the new devices, retail outlets and their customers are able to save a lot of time. At the same time, they still benefit from the high quality and security regarding the settlement of accounts by tipp3. The launch of the tippBox was supervised and supported by the Distribution Department of Austrian Lotteries. Total 5,162 Retail outlets (full product range) 4,094 Quick retail outlets (full product range, draw-based games with play slips only via quick pick) 1,063 POS 5 Responsible Gaming training Our sales representatives conducted comprehensive face-to-face training courses and survey at the retail outlets regarding Responsible Gaming. In this context, the awareness of retail outlet personnel was again raised regarding Responsible Gaming-relevant topics and the current state of knowledge was surveyed. Since 2014, Austrian Lotteries’ sales representatives have been giving lectures to current topics at the “Trafikantenakademie” (tobacconists’ training academy). Responsible Gaming is one of the most important education issues at the academy. Through their dedication and commitment, the retail outlets and POS have significantly contributed to Austrian Lotteries’ success in the past business year. Our retail 65 The Financial Year 2014 Developments Most recent innovations and trends are integrated in the development of games and the product portfolio of Austrian Lotteries. Complex ventures are implemented through interdisciplinary projects. New games on win2day, the introduction of the “TeamTipp” and the “Anteilsschein”, as well as the new number lottery game in Albania were the core themes in development. With the “TeamTipp” and the “Anteilsschein” (two forms of lottery syndicates), Austrian Lotteries turned over a new leaf in terms of participation in our games. Since 14 July 2014, up to ten people can play – and win – with the same picks, using the Lotto, EuroMillions or Toto TeamTipp. Each member of the team receives their own ticket and can thus claim his/her own prize independent of the other team members. Since 20 October 2014, Lotto and EuroMillions parti cipants have the possibility to play a wide range of picks with only a small stake and thereby increase their chances of winning significantly. The solution: the “Anteilsschein”. The player acquires one or several share/s of a defined number of already played picks, a so-called “Chance”, and thus receives a share of the winnings. For Lotto “6 out of 45” as well as for EuroMillions, there are three forms of “Chances” that differ in the number of picks and the number of total shares – and thus also in the price per share. The picks of each Chance are created by a random number generator based on Lotto or EuroMillions systems. In mid-June, the prices per pick for Lotto were adjusted. At the same time, the prize pyramid was slightly adapted. Additionally, the Lotto game has become more attractive due to higher winning sums in the first prize tier. The IT Department was responsible for updating the gaming system, as well as adapting the online terminals and the game applications on win2day. Second draw for Loto and new number lottery Fito Fito in Albania For the introduction of the second draw for Loto “6 nga 39” and of the number lottery game “Fito Fito”, the gaming systems had to be adapted accordingly. For Fito Fito, there is a draw each day (4 digits, each between 66 0 and 9 plus one of four lucky symbols) and a fixed grand prize to be won. Fito Fito is positioned in the lower price segment and is thus more attractive for a wider target group than Loto. New products on win2day The range of casino games was expanded in 2014 by the slot games “African Dream”, “Candy Pop”, “Robbie Rich Bonus”, “Fruit Stars”, “Lucky Dolphin”, the video poker game “Joker Lady” and the roulette version “Double Roulette”. Moreover, the “Frozen Diamonds” mini game was integrated into the Bingo Room. The mobile section was expanded with the games “Fruit Stars”, “Frozen Diamonds” and “Jacks or Better”. These games can be played on mobile devices directly via win2day and have been optimised for the two leading operating systems iOS and Android. New web-design for lotterien.at Be it on a classic PC, a tablet or a smartphone – the new website of Austrian Lotteries is convincing on all devices since its relaunch on 16 December 2014. The focus in terms of content has also shifted. In addition to general information on the company, recent product innovations, promotions and videos are given priority. The newly designed site is not only visually appealing, well-structured and neatly arranged, but also offers a wide range of useful services. An integrated Google Maps search allows the user to find the nearest retail partner in his/her vicinity. Visitors to the site are not only provided valuable information on the respective games, they will also find a direct link to the gaming offer on win2day. What is also new is the integration of the company’s own social media channels (e.g. Facebook) in a sidebar and the possibility to share all pages on Facebook, Twitter and Google+. Annual Report Austrian Lotteries 2014 Future Prospects Innovation as the basic task Under the title of “The Digital Transformation”, the third Innovation Day took place in late October at our event location Studio 44. Organised and hosted by the Group’s Innovation Management Department, the event attracted roughly 260 employees of the Casinos Austria and Austrian Lotteries Group, who followed the various presentations by experts like the marketing guru Dietmar Dahmen. The speakers offered insights into how businesses manage to enhance and intensify the so-called customer experience in this era of digital transformation. The media tells us all about technological innovations and new inventions, but what do they look like and how do we use them? The summer academy, hosted by Innovation Management during the summer months, gave answers to those questions. People had the possibility to experience these new pieces of technology first-hand and to have a seat in the possible living room of tomorrow’s customers. With “Ideenreich” (realm of ideas; rich in ideas), an internal platform for employees to submit ideas and suggestions for improvement quickly and unbureaucratically was created five years ago. Further, a forum for improvement suggestions was launched for all employees via the internal enterprise 2.0 collaboration platform. It is specially designed for the optimisation of workflows and processes. Austrian Lotteries will additionally strengthen its future market position with the introduction of new games and innovative technologies. As a dynamic and future- oriented company, especially in the technological field, Austrian Lotteries belongs to the leading lottery operators in Europe. As of 1 January 2015, the allowed maximum will be 50 terminals per WINWIN outlet. A separate access control system for the gaming area is prescribed by law. Additionally, each VLT is connected to the Austrian Federal Computing Centre (BRZ). In 2014, extensive reconstruction and gaming-infrastructure measures were implemented. In concrete terms, this meant the installation of a physical separation between the restaurant area and the gaming area, visitor registration and the introduction of a player card, the connection of each terminal to the Federal Computing Centre and adjustments of the game systems and the terminals. The adjustments and connection to the BRZ have been implemented successfully. The successful event series of the Responsible Gaming Academy will be continued in 2015. On 7 May 2015, the Academy will be held for the 12th time at Studio 44. Austrian Lotteries is closely following the current discussions pertaining to the regulations of the gaming business within the European Union. The right to implement lotteries will remain with the individual national governments. 67 As ................ I have to be open to everything new. Especially in my line of work, open communication and actively approaching people is very important. The education and training programme is naturally focused on the company‘s objectives and at the same time has to be designed in a way that is attractive to the employees. This broad scope is what I like so much about my job. Aside from that, I have to keep up-to-date regarding the methods of knowledge sharing and transfer. When I moderate workshops and people come out of it full of enthusiasm and motivation for their job, I am very satisfied. ? Am I R) a personnel and organisational developer S) a CSR manager T) a product manager Financial Statements 2014 Income Statement for the Business Year 2014 2014 EUR 1. Sales 2013 EUR k 3,150,975,002.38 3,049,114 -2,388,545,941.25 -2,305,173 762,429,061.13 743,941 4. Taxes dependent on sales and game-related taxes -434,395,117.51 -422,315 5. Gross gaming revenue after sales-dependent taxes and game-related taxes 328,033,943.62 321,626 121,535.05 82 66,907.78 356 28,354,881.81 22,516 28,543,324.64 22,954 -4,318,240.08 -4,460 -35,020,309.10 -37,872 b) Expenses for severance payments and contributions to employee provision funds -908,774.15 -1,897 c) Expenses for pension plans and retirement funds -836,974.64 -1,243 -9,375,167.38 -8,825 2. Allocated prizes 3. Gross gaming revenue 6. Other operating income a) Income from the disposal of fixed assets excluding financial assets b) Income from the release of provisions c) Others 7. Expenses for material 8. Personnel expenses a) Salaries d) Expenses for statutory social security contributions as well as payroll-related taxes and compulsory contributions e) Other social contributions -1,018,171.30 -1,083 -47,159,396.57 -50,920 -7,764,085.12 -7,154 -211,391.57 -389 -239,430,522.72 -237,254 -239,641,914.29 -237,643 57,693,632.20 44,403 9. Amortisation of intangible assets and depreciation of fixed assets and property, plant and equipment 10.Other operating expenses a) Other taxes than income tax b) Others 11.O perating profit = Sub-total from items 5 through 10 70 Annual Report Austrian Lotteries 2014 2014 EUR 2013 EUR k 16,079,674.72 15,165,500.00 16,118 14,896 13.Income from other securities of financial assets 2,118,197.92 2,163 14.Other interest and similar income, thereof from affiliated companies 1,100,092.20 367,965.47 522 -188 454,676.44 9 -21,687,518.00 -21,687,518.00 -21,687,518.00 -10,965 -10,958 -10,599 -4,901,674.88 -2,152 12. Income from investments, thereof from affiliated companies 15.Income from the disposal of and addition to financial assets 16.Expenses resulting from financial assets, thereof amortisation thereof expenses resulting from affiliated companies 17. Interest and similar expenses 18.Sub-total from items 12 through 17 (financial profit) -6,836,551.60 5,694 19.Profit on ordinary activities 50,857,080.60 50,097 20.Extraordinary expenses -2,565,017.47 0 21. Extraordinary profit/loss -2,565,017.47 0 22.Taxes on income, thereof based on the distribution of the tax burden -12,413,015.43 -12,452,153.00 -11,125 -11,125 23. A nnual income 35,879,047.70 38,972 4,120,000.00 1,020 39,999,047.70 39,992 1,587.00 9 40,000,634.70 40,002 24.Reversal of reserves from retained earnings (other reserves) 25.Annual profit 26.Profit brought forward from the previous year 27. Net earnings 71 Financial Statements 2014 Balance Sheet as at 31 December 2014 31/12/2014 EUR 31/12/2013 EUR k 1,621,796.77 1,753 42,531.43 0 1,664,328.20 1,753 1. Land and buildings, thereof land value 46,338,276.25 3,752,183.09 47,974 3,752 2. Other tangible assets, plant and office equipment 12,957,472.21 16,026 212,932.83 0 59,508,681.29 64,000 1. Shares in affiliated companies 14,310,000.00 23,104 2. Loans to affiliated companies 3,537,450.00 4,583 3. Investments 1,913,988.14 1,914 184,145,485.57 36,111,112.00 191,751 42,130 203,906,923.71 221,352 265,079,933.20 287,105 2,033,273.89 2,284 106,152.85 320 19,763,443.79 18,393 Assets A. Fixed assets I. Intangible assets 1. Industrial property rights and similar rights 2. Advance payments made II. Property, plant and equipment 3. Advance payments made III. Financial assets 4. Securities in fixed assets, thereof affiliated companies B. Current assets I. Inventory Goods II. Receivables and other assets 1. Trade receivables 2. Receivables due from affiliated companies 3. Receivables due from companies in which equity shares are held 4. Receivables due from retail outlets 5. Miscellaneous receivables and assets 0.00 925 53,266,324.31 42,697 3,112,802.04 3,625 76,248,722.99 65,959 14,922,602.89 20,234 113,134,953.17 77,185 206,339,552.94 165,663 3,376,212.53 3,950 474,795,698.67 456,718 III. Securities and shares Other securities and shares IV. Cash in hand Deposits with credit institutions C. Prepayments and accrued income Total assets 72 Annual Report Austrian Lotteries 2014 31/12/2014 EUR 31/12/2013 EUR k 110,000,000.00 110,000 1. Statutory reserves 11,000,000.00 11,000 2. Other reserves (free reserves) 61,060,000.00 65,180 72,060,000.00 76,180 40,000,634.70 1,587.00 40,002 9 222,060,634.70 226,182 17,497,550.00 15,953 2,864,100.00 2,810 Equity and Liabilities A. Equity I. Share capital II. Reserves from retained earnings III. Net earnings, thereof profit brought forward B. Provisions 1. Provisions for severance payments 2. Pension provisions 3. Provisions for taxation 4. Other provisions 7,555,200.00 7,512 31,991,023.44 22,895 59,907,873.44 49,170 11,935,736.37 14,081 C. Liabilities 1. Trade payables 2. Payables owed to affiliated companies 3. Payables owed to players 4. Other payables, thereof resulting from taxes thereof relating to social security D. Deferred income Total equity and liabilities Guarantees and other commitments 2,615,122.49 2,174 118,585,225.70 113,694 43,309,329.57 42,326,977.58 855,548.54 36,087 34,631 838 176,445,414.13 166,037 16,381,776.40 15,329 474,795,698.67 456,718 140,000.00 2,143 73 Financial Statements 2014 Assets Analysis for the Business Year 2014 Development of capital assets as at as at Fixed assets 01/01/2014 Acquisition Transfer Disposal 31/12/2014 EUR EUR EUR EUR EUR 20,766,142.68 696,991.31 0.00 101,895.22 21,361,238.77 0.00 42,531.43 0.00 0.00 42,531.43 20,766,142.68 739,522.74 0.00 101,895.22 21,403,770.20 77,426,722.41 0.00 0.00 0.00 77,426,772.41 3,752,183.09 0.00 0.00 0.00 3,752,183.09 97,524,070.37 2,243,797.33 0.00 7,341,399.85 92,426,467.85 0.00 212,932.83 0.00 0.00 212,932.83 174,950,842.78 2,456,730.16 0.00 7,341,399.85 170,066,173.09 I. Intangible assets 1. Industrial property rights and similar rights 2. Advance payments made II. Property, plant and equipment 1.Land and buildings, thereof land value 2.Other tangible assets, plant and office equipment 3. Advance payments made III. Financial assets 1.Shares in affiliated companies 23,124,650.00 0.00 0.00 0.00 23,124,650.00 2.Loans to affiliated companies 11,032,500.00 0.00 0.00 1,452,000.00 9,580,500.00 3.Investments 1,913,988.14 0.00 0.00 0.00 1,913,988.14 4. Securities in fixed assets, 239,061,559.17 875,000.00 0.00 1,672,524.91 238,264,034.26 thereof affiliated companies 69,150,000.00 875,000.00 0.00 0.00 70,025,000.00 275,132,697.31 875,000.00 0.00 3,124,524.91 272,883,172.40 470,849,682.77 4,071,252.90 0.00 10,567,819.98 464,353,115.69 Total assets analysis 74 Annual Report Austrian Lotteries 2014 Development of amortisation and depreciation Carrying values as at as at as at 01/01/2014 Acquisition Disposal Addition 31/12/2014 31/12/2013 31/12/2014 EUR EUR EUR EUR EUR EUR EUR 19,012,657.48 828,679.74 101,895.22 0.00 19,739,442.00 1,753,485.20 1,621,796.77 0.00 0.00 0.00 0.00 0.00 0.00 42,531.43 19,012,657.48 828,679.74 101,895.22 0.00 19,739,442.00 1,753,485.20 1,664,328.20 29,453,250.86 1,635,245.30 0.00 0.00 31,088,496.16 47,973,521.55 46,338,276.25 0.00 0.00 0.00 0.00 0.00 3,752,183.09 3,752,183.09 81,497,714.79 5,300,160.08 7,328,879.23 0.00 79,468,995.64 16,026,355.58 12,957,472.21 0.00 0.00 0.00 0.00 0.00 0.00 212,932.83 110,950,965.65 6,935,405.38 7,328,879.23 0.00 110,557,491.80 63,999,877.13 59,508,681.29 20,650.00 8,794,000.00 0.00 0.00 8,814,650.00 23,104,000.00 14,310,000.00 6,450,000.00 0.00 0.00 406,950.00 6,043,050.00 4,582,500.00 3,537,450.00 0.00 0.00 0.00 0.00 0.00 1,913,988.14 1,913,988.14 47,310,204.05 6,893,518.00 85,173.36 0.00 54,118,548.69 191,751,355.12 184,145,485.57 27,020,370.00 6,893,518.00 0.00 0.00 33,913,888.00 42,129,630.00 36,111,112.00 53,780,854.05 15,687,518.00 85,173.36 406,950.00 68,976,248.69 221,351,843.26 203,906,923.71 183,744,477.18 23,451,603.12 7,515,947.81 406,950.00 199,273,182.49 287,105,205.59 265,079,933.20 as at 75 Financial Statements 2014 Notes to the Financial Statements 2014 I. Explanation of Accounting Policies and Valuation Methods 1. General principles The financial statements have been prepared by the Managing Board of the company according to the provisions of the Austrian Commercial Code (UGB). The company is to be classified as a large corporation pursuant to Art. 221 of the Austrian Commercial Code. These annual financial statements have been prepared in accordance with Austria’s principles of adequate and orderly accounting and the general requirement of presenting a true and fair view of the company’s assets, and its financial and earning position. In the preparation of the financial statements, the principles of completeness were adhered to. In terms of the valuation of individual assets and liabilities, the principle of separate valuation was observed and based on the assumption of going concern. To account for the principle of prudence, only profits realised on the balance sheet date are recognised and all recognisable risks and impending losses have been considered. The accounting policies and valuation methods used for the present annual financial statements are consistent with those applied hitherto. 2. Fixed assets Intangible assets are recognised at acquisition cost less scheduled amortisation. The scheduled amortisation is applied on a straight-line basis. Property, plant and equipment are valued at acquisition cost, less scheduled depreciation. Pursuant to Art. 7 EStG (Income Tax Act) scheduled amortisation and depreciation is applied on a straight- line basis. Low-value items for which the cost of acquisition is less than EUR 400.00 are fully depreciated and derecognised in the year of acquisition. Financial assets appear in the balance sheet at acquisition cost. Unscheduled depreciation/amortisation is effected, if the value to be applied on the balance sheet date is lower. 3. Current assets Goods were valued at average acquisition cost. In terms of receivables and other assets, identifiable risks are accounted for via valuation adjustments. 76 Annual Report Austrian Lotteries 2014 4. Provisions Provisions for pensions, severance pay and anniversary bonuses are determined according to IAS 19 (“projected unit credit method”) on the basis of a discount rate of 2.50% (previous year: 3.50%) under pensions, severance pay and anniversary bonuses. In the calculation of severance and long-service bonus provisions, the statutory age for early retirement with transitional regulations and a discount for employee turnover have been assumed. The other provisions have been made for all risks and contingent liabilities identifiable at the time of balance sheet preparation in line with the prudence principle and reasonable commercial judgement. 5. Payables The payables were reported at the amount of repayment. 6. Currency conversion Foreign currency liabilities are valued according to the ask price on the balance sheet date, provided the ask price is higher than the book rate. II. Notes to the Balance Sheet 1. Fixed assets The development of the individual items in fixed assets and the allocation of annual depreciation per item can be viewed in the attached assets analysis (see attachment to the annex). The assets analysis also contains the land value of landed property. 2. Receivables and other assets The receivables as of 31 December 2014 are broken down according to their remaining term as follows: 1. Trade receivables Maturity up to 1 year EUR Maturity more than 1 year EUR Book value 106,152.85 0.00 106,152.85 EUR 2. Receivables due from affiliated companies 19,763,443.79 0.00 19,763,443.79 3. Receivables due from retail outlets 53,266,324.31 0.00 53,266,324.31 2,546,139.20 566,662.84 3,112,802.04 75,682,060.15 566,662.84 76,248,722.99 4. Miscellaneous receivables and assets As in the previous year, receivables due from affiliated companies affected miscellaneous receivables. 77 Financial Statements 2014 The receivables as of 31 December 2013 are broken down according to their remaining term as follows: 1. Trade receivables 2. Receivables due from affiliated companies Maturity up to 1 year EUR k Maturity more than 1 year EUR k Book value 320 – 320 18,393 – 18,393 EUR k 3. R eceivables due from companies in which equity shares are held 4. Receivables due from retail outlets 5. Miscellaneous receivables and assets 925 – 925 42,697 – 42,697 2,944 680 3,624 65,279 680 65,959 3. Other securities and shares This item exclusively relates to the EuroMillions game and results from the international agreement on the handling of this game. The securities and shares are held in trust. 4. Equity Within the retained earnings, an amount of EUR 4,120,000.00 (previous year: EUR k 1,020) was written back from the free reserves in favour of the annual returns 2014. 5. Other provisions Composition: Profit and risk accruals/deferrals for various games Personnel expenses Miscellaneous 2014 EUR 2013 EUR k 4,600,000.00 5,387 18,495,903.44 16,237 8,895,120.00 1,271 31,991,023.44 22,895 6. Payables The liabilities in the amount of EUR 176,445,414.13 (previous year: EUR k 166,037) all show a remaining term to maturity of up to one year. In line with the financial statements of the previous year, payables owed to affiliated companies only include trade payables, just like in the previous year regarding the companies in which equity shares are held. Other payables are mainly related to the gaming tax and the licence fee in the amount of EUR 40,925,116.82 (previous year: EUR k 33,459), which will only become effective after the balance sheet date. 78 Annual Report Austrian Lotteries 2014 III. Notes to the Income Statement The income statement is prepared according to the total expenditure format. 1. Sales Sales are produced in Austria exclusively and are broken down according to activities as follows: 2014 2013 EUR EUR k 586,376,137.78 572,914 8,066,998.95 9,044 182,932,051.69 181,617 993,903.70 973 Klassenlotterie 31,345,806.00 32,380 Brieflotterie 22,988,735.00 24,927 Zahlenlotto 4,055,973.00 4,004 127,730,969.00 119,383 Electronic lotteries W2D 1,179,361,591.99 1,197,604 Electronic lotteries Poker 3,325,708.60 3,974 634,958,113.97 551,207 Bingo 10,069,672.30 10,185 Keno 22,103.60 20 18,765,344.00 18,375 339,981,892.80 322,507 3,150,975,002.38 3,049,114 Lotto Toto Joker Torwette Rubbellotterie Electronic lotteries VLT Number lottery Euro Millions 2. Extraordinary profit/loss This item contains the expenses for the company agreement concluded in the business year 2014 regarding the part-time work model with on-call duties. 3. Taxes on income Corporate income tax amounted to EUR 12,413,015.43 (previous year: EUR k 11,125). 79 Financial Statements 2014 IV. Other Information 1. Relations with affiliated companies The company is affiliated with Casinos Austria AG, Vienna, and is part of the Group of fully consolidated companies. The group accounts are disclosed in the Commercial Register of the Commercial Court of Vienna. Regular business relationships exist with the following affiliated companies: • • • • • • Casinos Austria AG Österreichische Sportwetten Gesellschaft m.b.H. Glücks- und Unterhaltungsspiel Betriebsgesellschaft m.b.H. win2day Entwicklungs- und Betriebsgesellschaft m.b.H. OOO Ural Loto Lotaria Kombëtare sh.p.k. (formerly: OLG Project sh.p.k) 2. Investments The following companies listed constitute an ownership of at least 20% of all shares in the respective company: media.at Gesellschaft m.b.H. Registered office of the company Share percentage 31/12/2014 31/12/2013 Vienna Vienna 26.97% 26.97% 31/12/2014 31/12/2013 Vienna Vienna 50% 50% 31/12/2014 31/12/2013 Vienna Vienna 59% 59% 31/12/2014 31/12/2013 Vienna Vienna 100% 100% Entertainment Glücks- und Unterhaltungsspiel Gesellschaft m.b.H. Registered office of the company Share percentage Russisch Österreichische Lotterien Holding Gesellschaft m.b.H. Registered office of the company Share percentage Albanisch Österreichische Lotterien Holding Gesellschaft m.b.H. Registered office of the company Share percentage 80 Annual Report Austrian Lotteries 2014 3. Income from investments This includes a share in the profit from the participation in Entertainment Glücks- und Unterhaltungs spiel Gesellschaft m.b.H, from the participation in media.at Gesellschaft m.b.H. and income from investments in Services aux Loteries en Europe SCRL. 4. Average number of employees Employees 2014 2013 532 532 The financial statements 2014 were certified with an unqualified audit opinion by BDO Auxilia Treuhand GmbH, an auditing and tax consulting company in Vienna. 81 As …………… I make sure that the retail outlets receive their goods in time. When the retail outlets open their doors early in the morning, they often submit their first orders of scratch-off tickets, play slips, etc. via their online terminals. Every hour, these orders arrive in our system. For me, this means making sure that our retail partners receive their ordered goods as soon as possible. Some days, when all orders are summed up, we prepare up to 1,000 packages. ? Am I J) a property management employee K) a logistics employee L) a facility management employee Our Solution: T E A M WOR K 84 Jürgen Bauer is Martina Gangl is T)a system manager for networks & data centres W) a product manager Lavinia Gheorghe is Heinz Schuh is E) a test manager O) a sales representative Michael Schneider is Isabell Brandenberger is A) a customer service centre employee R) a personnel and organisational developer Alois Wanderer is Markus Bozecski is M)an employee in the technical draw operations team K) a logistics employee Imprint Österreichische Lotterien Gesellschaft m.b.H. Rennweg 44, 1038 Vienna Telephone:+43 (0)1 79070-0 Fax: +43 (0)1 7993939 Internet: www.lotterien.at, www.win2day.at, www.spiele-mit-verantwortung.at FN 54472 g, Handelsgericht Wien DVR-Nr: 0476706 Client Österreichische Lotterien Gesellschaft m.b.H. Corporate Communications [email protected] Editors Martin Himmelbauer, Martina Landsmann, Richard Emele, Alexandra Gräf, Maria Schidl Graphics and production schoeller corporate communications 1070 Vienna, Austria Photos Philipp Tomsich/image pages, products, tipp3 Stephan Huger/Managing Board Günther Pichlkostner/ORF/TV studio GEPA Pictures/Walter Luger/Toto Heinz Tesarek/Responsible Gaming, CSR Peter Svec/Responsible Gaming Academy Andreas Hofer, Achim Biniek, Andreas Friess, Michael Maderecker/Sponsorship PKP/BBDO/win2day Picture library of Austrian Lotteries Picture library of tipp3 Druck Wograndl Druck GmbH 7210 Mattersburg Printed in accordance with the printing guidelines of the Austrian Eco-Label UW 924 Certifications and awards 4
Similar documents
file - Österreichische Lotterien
Total prizes paid out in millions EUR Employees* * Full-time equivalents (FTE), annual average
More information