VEIKKAUS` YEAR 2008

Transcription

VEIKKAUS` YEAR 2008

VEIKKAUS’ YEAR 2008
Pirkanmaan elokuvakeskus ry, Turun Seudun SETA ry, Lapin Elämystuotanto Oy/Lapin elämysteollisuuden osaamiskeskus, Saamelaiskäräjät, Art Films Production AFP Oy, Suomen valokuvataiteen
& Anarkiaa/Love & Anarchy Ry, Nuoren Voiman Liitto ry, Sanataiteen yhdistys ry, Näkövammaisten Kulttuuripalvelu ry, Proto-Pohjois-Suomen Taideteolliset Suunnittelijat ry, Varsinais-Suomen
Finlands svenska litteraturföreningar rf, Suomen Kuvanveistäjäliitto ry, Tampereen taidemuseo, Joensuun Taiteilijaseura ry, Circus Maximus ry, Uuden taidekäsityön yhdistys ry, Improvisaatioteatteriyhdistys
ja nuorten arkkitehtuurikoulu Arkki ry, Taidemaalariliitto - Målarförbundet ry, Arkkitehtitoimistojen Liitto ATL ry, Suomen Tieteiskirjoittajat ry, Oulun Ooppera ry, Klockriketeatern rf, Suomen Solistiyhdistys ry Kanteleet ry, Pop & Jazz Konservatorion Tuki ry, Tapiolan Kamarikuoro ry - Tapiola Kammarkör rf, Virtuosi di Kuhmo ry, Suomen Käyrätorviklubi ry, Teollisuustaiteen Liitto Ornamo ry, Ålands Slöjd och
ry EBB, Tanssin Liikekieli ry, Suomen Pakolaisapu ry - Findlands Flyktinghjälp rf SPA, Helsingin Taiteilijaseura ry, AV-arkki ry, Turun Taiteilijaseura ry, Rämsöön kyläkerho ry, Maaseudun Sivistysliitto
Suomen Jääkiekkoliitto ry, Liikuntatieteellinen Seura ry, Nuori Suomi ry, Suomen Keilailuliitto - Finlands Bowlingförbund ry, Suomen Uimaopetus- ja Hengenpelastusliitto ry, Sukeltajaliitto ry,
Bandyförbund ry, Suomen Lentopalloliitto ry, Suomen Painiliitto ry, Suomen Palloliitto ry, Suomen Taitoluisteluliitto ry, Epilepsialiitto - Epilepsiförbundet ry, Suomen Latu ry, Suomen Reumaliitto ry, Suomen
Non Fighting Generation ry, Suomen Kansainvälisen Senioritanssin Liitto ry, Suomen Mielenterveysseura ry, Suomen Paralympiakomitea ry, Ahveniston Vesipedot ry, Koululiikuntaliitto KLL ry,
Finlands Svenska Idrott CIF rf, Judon Tuki ry, Suomen Käsipalloliitto ry, Suomen Olympiakomitea ry, Liikuntatieteellinen Seura ry, Urheiluopistojen yhdistys ry, Finlands Svenska Ungdomsförbund rf, Kansainvälinen
Opiskelevien Keskusliitto SAKKI ry, Suomen Lukiolaisten Liitto ry, Suomen Partiolaiset - Finlands Scouter ry, Eläinsuojeluliitto Animalia ry, Mannerheimin Lastensuojeluliitto ry, Suomen Punainen
Purjelaivasäätiö, Takaisin Elämään ry, Kesälukioseura ry, Suomen Katutanssiliitto ry, Nuorisotutkimusseura ry, Romano Missio ry, Suomen Lasten Parlamentti yhdistys ry, Svenska litteratursällskapet i Finland
Suomen kulttuuri- ja tiedeinstituutit ry, Helsingin yliopisto, Kansallisarkisto, Edistyksellinen tiedeliitto ry, Suomen Historiallinen Seura ry, Suomen Humanistiliitto ry, Työväenperinne - Arbetartradition ry,
museon säätiö, Åke Lindman Film-Production Oy, Joensuun
Aikuiskoulutussäätiö, Kirjailijayhdistys Paltta ry, Suomen
Stella Polaris ry, Runoviikko ry, Nukketeatteriyhdistys Akseli
Finlands Solistförening rf, Lieksan Vaskiviikon kannatusyhdistys ry,
Konsthantverk r.f., Kangasalan Kansantanssijat ry, Pohjoinen
ry, Ympäristötaiteen yhdistys YTY ry, Pargas Idrotts- och
Suomen Biljardiliitto ry, Suomen Ampumahiihtoliitto ry,
Valmentajat ry, Suomen Petanque-Liitto SP-L ry, Suomen
Tapanilan Erä ry, Työterveyslaitos, Suomen Ratsastajainliitto
Vapaaehtoistyö ry, Luonto-Liitto ry, Nuorten Kuoroliitto ry,
Risti, Linnanmäen sirkuskoulun kannatusyhdistys ry, Suomen
rf, Väestöliitto ry, Suomalaisen Kirjallisuuden Seura ry, Väestöliitto
Tulevaisuuden tutkimuksen seura ry, Tiedekeskus Heureka,
Popmuusikot ry, Helsinki International Film Festival - Rakkautta
kääntäjien ja tulkkien liitto ry, Galleristit - Galleristerna ry,
Klonk ry, Ilmaisuverstas ry, Valokuvataiteilijoiden liitto ry, Lasten
Imatra Big Band Festival ry, Teatteriyhdistys Takomo ry, Finnvalokuvakeskus ry - Nordliga fotocentret ry, Espoo Big Band
Ungdomsgård Ab, Stadion-säätiö, Suomen Koripalloliitto ry,
Suomen Curlingliitto ry, Suomen Jääpalloliitto - Finlands
Veteraaniurheiluliitto ry, Suomen Invalidien Urheiluliitto ry,
ry, Koululiikuntaliitto KLL ry, Näkövammaisten Keskusliitto ry,
Suomen Aistivammaiskoulujen Oppilasliitto ry, Suomen Ammattiin
Nuorisoyhteistyö - Allianssi ry, Föreningen Luckan rf, Suomen
ry, Svenska folkskolans vänner rf/Svenska studiecentralen,
Suomen kirjastoseura ry, Tietoasiantuntijat ry, Tutkijaliitto ry
A FINN TO WIN.
CORPORATE RESPONSIBILITY REPORT
ANNUAL REPORT
DEAR READER,
You are reading the corporate responsibility and annual report
of Veikkaus, the Finnish National Lottery.
Veikkaus is a Finnish lottery for Finnish players. We provide
high-quality gaming entertainment in a reliable and responsible way.
Veikkaus attained one of the best results of its history in
2008, measured against all the key indicators. Our financial
success benefits all Finns.
In 2008 Veikkaus generated a total of EUR 407.9 million of
funds for the Finnish arts, sports, science, and youth work.
Veikkaus funds were distributed to some 2 350 beneficiaries
operating in the field of the arts; 650 operators in the field of
sports; 70 operators in science; and 450 operators in youth
work in 2008.
The tens of thousands of sales agents selling Veikkaus
games are the most prominent part of Veikkaus’ operations
to our customers. Veikkaus’ year 2008 presents a couple of
our points of sales and sales agents from different parts of
the country. Every sales agent and point of sales have their
CONTACTS
own stories; yet all of them are united by Veikkaus and the
Finnish customers.
A FINN TO WIN!
Veikkaus Oy
Veikkaus’ annual and corporate responsibility report is published
TH E AN N UAL R E P O RT WAS E D ITE D BY:
L AY O UT A N D PICT UR E DESIGN :
in Finnish and English. The report can also be read in Swedish at
Veikkaus’ Communications in cooperation with Spokesman Oy
Spokesman Oy
our website www.veikkaus.fi /yritys.
and PricewaterhouseCoopers Oy.
Up-to-date information is also available in our newsletter
CO NTAC T IN FO R M ATIO N :
Veikkaus’ eNews. To order the newsletter and the annual
VEIKKAUS OY, THE FINNISH NATIONAL LOTTERY
report, please contact Veikkaus’ Communications:
Karhunkierros 4
PR INTED AT :
tiedotus@veikkaus.fi , or www.veikkaus.fi /yritys.
FI-01640
Libris Oy, 2009
PHOTO S:
Antti Viitala/Sunlight Studios Oy
Vantaa, Finland
Tel. +358 20 750 750
PA PER :
Cover: Arctic Gloss + Munken Polar 300 g
www.veikkaus.fi
Inside pages: Munken Polar 130 g
Pages of the Financial statements: Munken Print White 115 g
T R A N SL AT IO N INTO EN GL ISH:
Marja Heikkinen, TransEarly
The names on the cover are some of the numerous beneficiaries of Veikkaus funds.
CONTENTS AND OUTLINE OF THE REPORT
Veikkaus’ operations and existence are based on responsibility. We report on our corporate responsibility
annually - the previous report was published in spring 2008.
Veikkaus’ year 2008 contains a report of operations and a corporate responsibility report. It is destined for
our stakeholders and covers all our operations. The report on operations contains all the core financial
indicators and the financial statement. The corporate responsibility report focuses on social responsibility.
Veikkaus’ year 2008 contains five parts. They describe Veikkaus’ customer contacts, give a general overview
of our corporate responsibility, and shed light on our economic, social, and environmental responsibility.
At the end of the report, there is a special section on Veikkaus’ organization, corporate governance, and
different organs. The section on corporate governance adheres, where applicable, to the Corporate
Governance Recommendation for Finnish listed companies and the guidelines on State Ownership Steering
issued by the Ministry of Education. The financial statement complies with the IFRS standard.
The contents and financial reporting practices have not gone through significant changes since last year.
The key indicators of social responsibility are based on multiple sources.
The key indicators of the customer relations section have been obtained from Veikkaus’ customer database,
gaming transactions, and audited accounts.
The information in the section on economic responsibility is based on Veikkaus’ financial reports, gaming
transactions, audited accounts, and consolidated financial statement.
The key indicators of social responsibility have been obtained from Veikkaus’ human resource information
systems, payroll systems, gaming transactions, and service providers. The personnel indicators comply with
the general instructions issued by the Accounting Standards Board.
The environmental responsibility indicators have been obtained mainly from service providers.
Veikkaus complies with the international reporting recommendations of the Global Reporting Initiative (GRI 3)
for the fifth year in a row. This year, Veikkaus’ corporate responsibility report has been assured for the first
time by an external assurance provider, PricewaterhouseCoopers Oy. Veikkaus’ contact information can be
found at the end of the report.
Annual report 2008
1
KEY INDICATORS
DEVELOPMENT OF TURNOVER
EUR MILLION
1,600
1,261 1,316 1,3611,391 1,475
1,400
Turnover
2008
2007
EUR million
EUR million
Change in %
1,474.8
1,391.4
+ 6.0
Gross margin on sales
541.6
508.1
+ 6.6
Operating profit
440.7
421.1
+ 4.7
Profit before appropriations
449.1
427.4
+ 5.1
Financial result
449.1
427.4
+ 5.1
1,200
31 Dec 2008
1,000
Number of employees
Number of points of sales
800
Registered customers
31 Dec 2007
354
370
-4.3
3,166
3,114
+ 1.7
836,097
612,326
+ 36.5
600
400
Veikkaus holds the exclusive right to provide betting and pools games, and lotteries in Finland. The Council
of State has also granted the right to run games to two further gaming organizations, the Finnish Slot
200
Machine Association RAY and Fintoto. The current gaming licences will be effective until the end of the year
2011. Veikkaus is owned by the Finnish State and the distribution of Veikkaus’ profits is determined by the
0
2004 2005 2006 2007 2008
Ministry of Education. Veikkaus’ head office is located in Vantaa in the capital region. The company also has
a regional office in the city of Tampere and four sales offices in the cities of Kuopio in eastern Finland; Oulu
700
DEVELOPMENT OF
FINANCIAL RESULT
EUR
600 MILLION
500
398 401 408 427 449
400
300
200
100
0
2004 2005 2006 2007 2008
2
Annual report 2008
in northern Finland; Turku in south-western Finland; and Vaasa on the west coast.
CONTENTS
Key indicators ..................................................................................................... 2
CEO’s review ....................................................................................................... 4
Mission, vision and values .................................................................................... 5
Innovative Veikkaus is strong ............................................................................... 6
Operations guided and monitored at many levels .................................................... 7
Operating environment in transition ..................................................................... 8
Security cooperation across borders ................................................................... 10
BREAKDOWN OF VEIKK AUS EURO
2008
CORPORATE SOCIAL RESPONSIBILIT Y
Veikkaus’ operations are based on responsibility ..............................................
Veikkaus’ CSR Programme and key indicators ...................................................
Active interaction with stakeholders ...............................................................
Responsible profit .........................................................................................
Change from 2007
PRIZE PAYOUT
51.2 cents
0.0%
VOITOT PELAAJILLE 51,6 snt
LOTTERY TAX
4.6 cents
-2.1%
5.4 cents
-3.6%
TAIDE 13,5 snt
RETAIL COMMISSIONS
LIIKUNTA 6,9 snt
8.3 cents
7.8%
12.9 cents
-3.7%
OPERATING COSTS
TIEDE 5,5 snt
ARTS
NUORISOTYÖ 2,5 snt
SPORTS
7.1 cents
0.0%
5.2 cents
-5.5%
2.5 cents
-3.8%
KÄYTTÖRAHASTO 1,5 snt
SCIENCE
ARPAJAISVERO 4,6 snt
YOUTH WORK
ASIAMIESPALKKIOT 5,9 snt
UNDISTRIBUTED
TOIMINTAKULUT 8,0 snt
PRIZES
2.8 cents
27.3%
DISTRIBUTION OF VEIKK AUS FUNDS
2008
12
14
16
18
CUSTOMER REL ATIONS
Customer relations valued .............................................................................. 20
Popularity of Veikkaus’ website continues to increase ...................................... 24
Veikkaus’ sales network comprehensive and service-minded ............................. 25
ECONOMIC RESPONSIBILIT Y
Veikkaus’ economic success benefits Finns ..................................................... 28
Gaming generates significant benefit to society .............................................. 30
One of the most efficient lotteries in the world ............................................... 31
Veikkaus games ............................................................................................. 34
SOCIAL RESPONSIBILIT Y
Social responsibility as the cornerstone of operations ...................................... 36
Gaming organizations finance research into problem gambling........................... 40
Reliable communications and marketing .......................................................... 41
Veikkaus’ staff happy with their jobs ............................................................... 42
Key personnel indicators ................................................................................ 43
ENVIRONMENTAL RESPONSIBILIT Y
Environmental responsibility part of Veikkaus’ everyday work ........................... 46
Governance ...................................................................................................... 53
57
Board of Directors ............................................................................................. 58
Executive Teams ............................................................................................... 60
Comparison of the annual report with GRI’s recommendations ............................... 62
TAIDE 47,5 %, 190,6 milj. euroa
Organization .....................................................................................................
sisältäen KIRJASTOT 10,0 %, 40,0 milj. euroa
LIIKUNTA 24,4 %, 97,8 milj. euroa
TIEDE 19,4 %, 77,9 milj. euroa
NUORISOTYÖ 8,8 %, 35,2 milj. euroa
ARTS
46.4%
incl. LIBRARIES 13.1%
EUR 189.2 million
EUR 24.7 million
SPORTS
25.5%
EUR 104.1 million
SCIENCE
18.9%
EUR 77.1 million
9.2%
EUR 37.5 million
YOUTH WORK
Total
EUR 407.9 million
FINANCIAL STATEMENT 2008
Board of Directors’ report ............................................................................... 66
Income statement ......................................................................................... 72
Balance sheets .............................................................................................. 73
Cash-flow statement ..................................................................................... 74
Changes in shareholders’ equity...................................................................... 75
Accounting principles ..................................................................................... 76
Notes to the financial statement .................................................................... 79
Auditors’ report ............................................................................................. 88
Statement by the Supervisory Board ............................................................... 89
Independent assurance statement ...................................................................... 90
Glossary ........................................................................................................... 91
Veikkaus’ year 2008 ......................................................................................... 92
Contacts
Annual report 2008
3
Marketspaces were replaced by Motivational States
in the organization; the executive team assisting
the CEO was made a Strategic Executive Team;
in addition, an Operative Executive Team was established. According to a personnel survey, Veikkaus’
employees have adopted the change in an excellent
manner and are committed to the continuous development of the operations.
During the year under review, we finalized the
biggest total investment of Veikkaus’ history, as the
new central game system was introduced. We had
previously reformed the internet game system, the
online terminals, and the data communications network. The volume of the reform is illustrated by the
fact that it was one of the largest investments in
data systems in Finland and the new game system
is the greatest in the whole world in terms of different functions. The launch of the new system was
successful. For that, we want to thank Veikkaus’
personnel, retailers, and game sales staff.
CEO’S
REVIEW
YEAR OF CHANGE AND SUCCESS 2008
A recent British research (University of Salford,
Great Britain) shows that the players of Lotto and
instant games are some of the happiest people in
the world. Another research conducted by the Research Institute for the Languages of Finland (Liisa
Raevaara: Kiosk Language) indicates, in turn, that
Finns are at their most polite during kiosk service
encounters having to do with Veikkaus games. The
encounters are happy and positive. In fact, they act
as an accurate interface to the role of the national
gaming system, which is favourable in many ways!
For Veikkaus is indeed a special thing for Finns! It
brings joy and experiences to our everyday lives.
And Veikkaus did attain the best result of its history
in 2008. By managing to improve our performance
constantly, we can guarantee the financial operating conditions for the arts, sports, science, and
youth work.
In the year under review the Finnish government
made a bill to the Parliament on the amendment
of the Finnish Lotteries Act. The government bill
concerned, e.g., the marketing of the games, their
age limits, and the competence of the licensing
authorities. The deadline for the proposals for the
4
Annual report 2008
second phase of the amendment of the Lotteries
Act was the end of March 2009. The proposals
concerned the organization of gaming as regards
the different games and gaming operators. Veikkaus
will continue to act in an efficient, productive, and
responsible manner even within the framework of
the new Lotteries Act.
The preparation of the Lotteries Act has proved
how difficult it is to change patterns and structures
that have been in place for a long time. Of course,
Veikkaus will continue to support solutions that
serve the best interest of society as a whole,
making the structure of national gaming activities
clearer, more uniform, and more rational.
For Veikkaus’ internal operations, the year 2008
meant changes and development towards more
customer-focused activities. Since the beginning of
August 2008 we have been following an updated
Customer Relations Strategy which provides us with
better chances to understand our customers. It is
based on a strong increase that has taken place in
identified playing. We even delineated our organization and governance system more specifically to
support the implementation of the strategy and to
channel the resources in the right way. The former
Veikkaus exceeded its financial objectives in 2008.
We were in excellent shape even according to
the other parameters. Our core strategies were
implemented successfully. In our most important
sector, i.e. responsibility, we proved to perform well.
Veikkaus ranked second in the survey ”Companies
and CSR” carried out by TNS Radar in spring 2008
in questions on how seriously different companies
were thought to take the economic, environmental,
and social responsibility in their operations. The
respondents also rated Veikkaus’ way of communicating its social responsibility the second best of
all the companies involved. Especially the ratings of
our economic responsibility improved compared with
the year before to a gratifying degree.
The results of a survey conducted by the Finnish
market research house Taloustutkimus in summer
2008 confirmed that Veikkaus’ operations are indeed
valued. It showed that ninety-six percent of Finns regard it as important or very important that Veikkaus
funds are returned to Finnish society. Veikkaus is
considered a reliable and honest company.
Taloustutkimus also performed a survey concerning
corporate communications in spring 2008. In the
survey, Veikkaus communications were rated excellent: Veikkaus attained the best overall ratings in
the large companies’ series, being the only company
to achieve a grade of over eight (average of 8.08).
We also improved our performance in the surveys
measuring the brand image. A survey by Norstat
Tracking showed that Finns associated Veikkaus
and Lotto strongly with dreaming, which was exactly the image we had been wanting to convey.
The expertise and trust of the retailers and
sales staff are vital for Veikkaus. In a retailer
barometer survey carried out by another Finnish
market research house Tietoykkönen Oy in March
2008, one hundred percent of the respondents
considered they had at least reasonable knowledge
of Veikkaus’ products, whereas up to seventy
percent said their product knowledge was good.
For this result, we have to thank our active training
programmes.
In order to ensure a solid financial performance
even in the future, we need to develop constantly.
Veikkaus’ operations are influenced by the changes
in the economic environment that will probably
also have their effects on the consumers’ gaming
behaviour.
The debate over the regulation of gaming within
the EU has been going on in a more organized manner than previously. This is exactly what Finland has
been aiming at. The national gaming systems differ
as regards the details; yet, the basis of the gaming
systems in all the Member States is that society
ensures the reliability, responsibility, and high quality of the gaming business and guides people to
play in a moderate extent. The debate that has been
going on in the EU institutions over the grounds
for the gaming activities shows that the exclusive
right system will constitute a well-functioning and
sustainable model even in the future!
I wish to thank Veikkaus’ customers, retailers, sales
staff, partners in cooperation, and staff for the
excellent financial performance and operations in
2008. We are on the right path, and with our good
cooperation, even the years to come will be favourable. Veikkaus’ customers are happy. The Finnish
arts, sports, youth work, and science will continue to
flourish. A Finn to Win!
MISSION
A FINN TO WIN
Veikkaus generates versatile value to Finnish society by
operating games reliably and responsibly.
VISION
VEIKKAUS IS A PIONEER
Veikkaus will be the world’s leading state lottery in terms of customer-focus,
know-how, and efficiency in 2010.
Veikkaus is a pioneer in the midst of the changes taking place in the operating
environment and the entertainment market.
For its owner, Veikkaus provides the best option for a sustained promotion of the
necessary facilities for Finnish arts, sports, youth work, and science.
VALUES
VEIKKAUS WORKS FOR THE COMMON GOOD
Veikkaus generates versatile value to Finns. We offer Finns an opportunity to
participate in the promotion of the common good safely and reliably by playing
Veikkaus’ games.
Veikkaus offers Finns a chance to work for the common good. We employ indirectly
tens of thousands of Finns.
RESPONSIBLY
Social responsibility is a central part of Veikkaus’ strategy and operations in practice. Our customers must be able to rely on Veikkaus one hundred percent. We shall
report on our activities widely and openly, since we are responsible for our actions
to Finnish society.
RELIABLY
Veikkaus’ employees can rely on each other in all situations. Open interaction is an
essential part of reliability. Our customers can always trust in the game products
we offer.
CREATIVELY
Risto Nieminen
We want our games, services, and the way we operate reflect creativity and joy. We
also encourage our staff to be innovative.
Annual report 2008
5
INNOVATIVE VEIKKAUS IS STRONG
The year 2008 was excellent for Veikkaus’
beneficiaries. Ensuring the future financial success
requires constant evolving. In the year under review,
we started to implement an updated Customer
Relations Strategy to make sure that we will be able
to channel the demand for games to our products
even in the future. It was decided that the focus of
the strategic update should be on the effective use
of customer understanding. As the strategic focus
was delineated, even the key processes making
up the operative substance were updated. The
organization and governance system were specified
to support the implementation of the strategy and
to target the resources in an appropriate manner.
Veikkaus offered many theme events concerning
the reform at the different stages of the process.
Veikkaus’ employees are committed to the continuous development of the operations. The innovative
approach has enabled us to lay the foundations for
>> STRATEGIC FOCUSES IN 2008
The six objectives of the operational focuses set for the year 2008 were met as follows:
• Financialperformancecontinuedtoimprove
- Veikkaus’ operating profit increased by 4.7% during the year under review.
• Thenumberofcustomersplayingidentifiedcontinuedtogrow.
- Identified gaming showed positive development; during the best week in 2008, identified gaming
represented 34.7% of all gaming.
• Internationalgamingcooperationwasdeveloped
- During the year under review, Veikkaus was granted permission to run a joint European game.
Preparations to launch the game were made in the course of the year 2008.
• ThescopeofCSRwasextendedtocoveralloperations
- Veikkaus ranked second in the Companies and CSR 2008 survey carried out by TNS Radar. The
survey covered a total of thirty large Finnish companies.
• Gamesystemdevelopmentprogressedsmoothly
- Veikkaus’ new central game system was launched in November 2008.
• Thefunctioningoftheorganizationatthecompanylevelwasdeveloped
- Veikkaus’ organization and operating models were reformed and their functioning was improved;
the resources were targeted in a strategically appropriate manner.
solid success and will continue to do so even in the
>> FUTURE PROSPECTS
future.
In the years to come, the gaming industry will be influenced by certain essential features. From an
international perspective, there have been plans to reform the national gaming systems in different
countries. From the Finnish perspective, the new lottery legislation will delineate more clearly the
framework within which games are organized. The channels of distribution are in transition as regards
both the retail trade and the electronic channels. The economic recession, which has only begun, may
affect gaming in the next few years.
In order to be a strong and successful company in the midst of a changing operating environment,
Veikkaus will focus especially on the following objectives in 2009:
• Reinforcingthecompany’sstatuswithinthechangingoperatingenvironment
• Increasingthevaluetotheshareholder
• Implementingcorporatesocialresponsibilitythroughouttheoperations
• Improvingfinancialperformancetoamoderateextent
• Increasingthenumberandqualityofcustomerrelations
• Makingtheoperationsmoreeffective
6
Annual report 2008
OPERATIONS GUIDED AND
MONITORED AT MANY LEVELS
• TheServiceProcess
• TheProductDevelopmentProcess
• TheSteeringProcessof
the Planning of Operations
Veikkaus’ steering groups
specified by functions:
• BusinessDevelopment
• LegalAffairsandHumanResources
• BusinessOperations
• FinancialManagement
• Production
• Communicationsand
Corporate Responsibility
functions. The steering groups have got the mandates
of the directors of each function to make decisions.
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Composition of the Strategic and Operative Executive Teams
pp. 60-61.
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An a
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an
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Veikkaus’ incentive scheme is described on page
55. The incentive scheme covers the entire staff.
VEIKK AUS’ ANNUAL STRATEGIC SCHEDULE
Ta
nt
INTERNAL AUDIT
Veikkaus’ internal audit assesses the adequacy,
reliability, and effectiveness of the company’s
processes of risk management, control, and governance. The internal audit also aims at developing the
control systems related to management; assuring
the legality of the operations; and preventing possible cases of abuse. The internal audit is carried out
by Veikkaus’ internal Controller in cooperation with
an external partner. The internal audit of the retail
network is described on this report’s page 27.
me
CORE BUSINESS PROCESSES
Through four core processes, Veikkaus ensures that
the issues critical from the point of view of the
business operations are attended to in a controlled manner. The core processes guarantee that
Veikkaus keeps working in a customer-focused
manner and responds to the customers’ needs. The
operation of the core processes is reinforced by sup-
STEERING GROUPS OF THE FUNCTIONS
The function-specific steering groups’ responsibilities follow the roles of the functions. The steering
groups coordinate the functions as a whole to ensure
cooperation and communication within and between
the functions. One of the central tasks of the steering
groups is the planning, steering, and monitoring of the
• TheCustomerProcess
op
See also pp. 53-56
Cooperation across Veikkaus’ functions is enhanced
by setting objectives to processes that cross the
boundaries between the units. All the core processes are based on and aim principally at customer
satisfaction. Steering and managing this pattern is
crucial to the success of the strategy.
The core processes include:
l
ve
BOARD OF DIRECTORS,
EXECUTIVE TEAMS, STEERING GROUPS
Veikkaus’ supreme governing body is the General
Meeting which appoints the Board of Directors
and the Supervisory Board. The Board of Directors
has two internal committees, the Audit Committee
and the Personnel Committee. The Supervisory
Board has fourteen members, one of whom is a
representative of the personnel. The company’s
operations are managed by the CEO, who is assisted
in this task by the Strategic Executive Team. The
operative function is managed by the Operative
Executive Team led by the Senior Vice President,
Business Operations.
port processes, including the processes of financial
management and human resources. The operation
of Veikkaus’ core processes and their objectives are
monitored, just as all the other objectives that are
set annually.
tin
During the year under review Veikkaus adopted
a new model of operations, reinforcing customer
focus and corporate responsibility. At the same
time the organization and governance system were
delineated to support the strategic objectives. The
operations of the Executive Team were divided
between the new Strategic Executive Team and
Operative Executive Team *. The requirements of
the changing operating environment were met by
reinforcing the development function in connection with the reform. The principal mission of the
development function is to increase Veikkaus’ value
in the long term. In practice this means that we constantly need to explore and develop new forms of
business operations and solutions supporting them.
Annual report 2008
7
OPERATING ENVIRONMENT IN TRANSITION
Whilst providing games to Finnish citizens securely
and reliably, Veikkaus offers the players a chance
to win monetary prizes. The positive consequence
of Veikkaus’ exclusive right to run games is that
the proceeds are channelled to the Finnish arts,
>> OBJECTIVE FOR 2009
• TheimplementationoftheEuropeanLotteries’principlesofresponsiblegamingwillbeaudited.
• Veikkaus’self-evaluationontheimplementationofWLA’sprinciplesofresponsiblegamingwillbe
audited.
sports, science, and youth work. The euros spent on
Veikkaus games do not flow out of the country but
are used to support the wellbeing of Finns – over
one million euros every day. Veikkaus needs to be
able to offer products so interesting that Finns
EU MEMBER STATES HAVE
prepare a report on the integrity and reliability of
want to keep playing legal, controlled games.
DISCRETION IN GAMING MATTERS
gaming over the internet in 2008. Gaming was
The gaming systems differ between the EU
also discussed by the Council’s Working Group on
NEW LOTTERIES ACT BEING PLANNED
Member States; each State is entitled to choose a
Establishment and Provision of Services following
The current Finnish Lotteries Act entered into force in
systemthatsuitsitbest.However,allthesystems
an initiative by France, which held the Presidency of
2002. An amendment process was started at the be-
are based on the principle that society engages to
the European Union during the year under review.
ginning of 2008. The process consists of two phases;
make sure gaming business is organized in a reliable,
the proposals for the first phase were submitted to
responsible manner which ensures high quality and
The EU Commission sent Finland a Reasoned
the Finnish Parliament in the summer. The proposals
promotes moderate gaming. In 2008 there was
Opinion in March 2007 concerning sports betting
concerned the marketing of the games, age limits, and
debate in certain European countries whether the
and Football Pools. The Reasoned Opinion followed
the licensing authority’s competence. In the autumn
exclusive right system should be given up in part or
the Official Letter that had been sent to Finland in
of the year under review, the Ministry of the Interior
whether gaming should be organized according to
2006, which had been based on complaints to the
decided to notify* the EU Commission of the Finnish
some other system.
Commission on the national exclusive right applied
to sports betting and Football Pools in Finland.
government’s bill for a new lotteries act.
The overwhelming majority of the EU States are in
Finland responded to the Reasoned Opinion in May
The themes to be dealt with in the second phase
favour of the national gaming system. In 2006 the
2007. The Commission did not proceed with the
of the amendment of the Lotteries Act include
European Parliament decided to exclude gaming
infringement case in 2008.
the licensing system or the legal monopoly*; the
from the scope of the Services Directive. Prior to the
guidance of the gaming organizations; player
decision, the EU Member States had expressed their
ACTIVE INTERNATIONAL ENGAGEMENT
identification even in slot machine games; the pre-
wish that the directive should not be applied to
Veikkaus has an active role in the international
vention or restriction of cross-border gaming over
gaming. Gaming is not subject to special regulation
associations of the gaming sector in Europe (Euro-
the internet; the organization and resourcing of the
within the European Union, but the European Court
pean Lotteries, EL) and worldwide (World Lottery
licensing and supervisory bodies; and the resources
of Justice has issued several rulings on gaming.
Association, WLA). Veikkaus’ CEO Risto Nieminen
of the monitoring, prevention and treatment of and
None of the rulings of the European Court of Justice
was elected Senior Vice President of the Executive
research into problem gambling. The deadline for
have called the exclusive right system into question.
Committee of the WLA in October 2008. Veikkaus’
making the proposals concerning the second phase
The European Parliament’s Committee on Internal
Executive Vice President Jussi Isotalo acts as a
of the amendment was 31 March 2009.
Market and Consumer Protection started to
Member and Vice President of the EL’s Executive
*
8
see Glossary p. 91
Annual report 2008
“Finns are in favour of the present system of gaming. In a
recent survey, the majority of the respondents (82%) said
they considered Veikkaus’ exclusive right to run games in
Finland a good thing.”
CSR Survey commissioned by Veikkaus, carried out by
the Finnish market research house Taloustutkimus in June 2008
RULINGS BY THE EUROPEAN
COURT OF JUSTICE
Schindler
1994
Läärä
1999
Zenatti
1999
Anomar
2003
Gambelli
2003
Committee. In Veikkaus’ view, the most important
Both the WLA and the European Lotteries (EL) have
Lindman
2003
task of the organizations is to promote the general
special CSR working groups whose task it is to cre-
Placanica
2007
interests involved in the national principle of exclu-
ate uniform and comprehensive operational models
sive right of gaming.
for the promotion of responsible gaming in practice.
During the year under review, both associations
During the year under review, the members of the
were preparing a process of assurance in order to
World Lottery Association (WLA) adhering to the
audit the measures taken by the member lotter-
model of operations based on corporate responsi-
ies to promote responsible gaming. In 2009 the
bility carried out a self-evaluation of their level of
pioneering lotteries, including Veikkaus, will perform
responsibility at the scale from 1 to 4. Veikkaus, just
an audit on their level of responsibility, using an
as the other Nordic WLA members that were among
external auditor in the venture.
the first lotteries to sign the model of operations, is
at the highest level 4 according to its own evalua-
The Nordic lotteries continued their cooperation
tion. The WLA is planning to conduct audits on the
and active knowledge sharing for the promotion of
self-evaluations.
corporate social responsibility, initiated in the previous year. The members of the Nordic CSR Working
The Finnish national gaming organizations*
founded the Finnish Gaming Research
Foundation in spring 2008. The Foundation
engages to promote and support multidisciplinary and international research into
gaming, investigating gaming as a societal
and cultural phenomenon. The Foundation’s
activities draw on, e.g., legal, social, behavioural, technological, and natural research.
*
Veikkaus, the Finnish Slot Machine Association RAY,
and Fintoto
Group are the national lotteries of Denmark, Finland,
Iceland, Norway, and Sweden.
INTERNATIONAL RESPONSIBLE GAMING
AGREEMENTS SIGNED BY VEIKKAUS
• WLAResponsibleGamingPrinciples2006
• WLAResponsibleGamingFramework2006
• ELResponsibleGamingStandards2007
• ELCodeofConductonResponsibleSportsBetting2007
Annual report 2008
9
SECURITY COOPERATION ACROSS BORDERS
In spite of careful supervision, gaming always
In the year under review, Veikkaus exchanged in-
MONEY LAUNDERING ACT OBLIGES
involves risks. We do not have an infallible way to
formation with the other EL members regularly. We
VEIKKAUS AND ITS RETAILERS
prevent criminal ventures even in the gaming busi-
adhere to the respective practices as regards the
A player’s identity must be verified if the stake or
ness. Veikkaus takes into account both the risks
betting objects from the Finnish ball game series.
several interlinked stakes s/he places exceed a total
involved in its own operations and those involved
The EL’s betting operator members are planning to
of EUR 3 000. Further, although the euro limit is not
in its partnerships. We monitor the distribution of
establish a joint European new generation supervi-
exceeded, a report must always be filed in cases
stakes carefully, and follow the sports events to
sion system in 2009. The new system will enhance
of suspected misuse. Veikkaus and its retailers
which our betting objects are related in order to
cooperation both among the EL and its members
are under obligation to report suspected cases of
spot possible deviations. Veikkaus’ supervision and
and between the EL and UEFA in order to guarantee
money laundering to the authorities. The preven-
control systems will give the alarm if they detect
the independence of football.
tion of money laundering and the coordination of
clear deviations in, e.g., game sales. If we notice
the related preventive measures belong under the
that, e.g., one betting object attracts exceptionally
OPERATIONAL RISKS
Centre for Investigation of Money Laundering of the
big bets, we can close the object.
ANALYSED AND MONITORED
National Bureau of Investigation.
The CEO is in charge of Veikkaus’ risk management.
In practice, the gaming organizations notify each
The two Executive Teams make sure that the risk
APPLICATION OF THE RULES
other and the football organizations if they detect
management process is operated smoothly and
OF GAMES MONITORED
exceptional gaming behaviour in matches belonging
make decisions on the management of individual
The lottery, pools and betting operations are super-
under the supervision of UEFA and FIFA. Moreo-
risks according to their competence. In this task,
vised by the Ministry of the Interior. The Ministry
ver, the gaming companies of different countries
the Executive Teams are assisted by a specially
confirms the rules of the games. Player complaints
cooperate closely in security matters. Suspected
appointed Risk Management Group, which develops
related to prize payout are processed by the Minis-
cases of fraud in football matches inspired discus-
the risk management process and coordinates risk
try, which issues recommended decisions on them.
sion in Finland and in the rest of Europe in the year
evaluation and the operation of the management
In 2008 a total of 71 recommended decisions were
under review. In the years 2005 and 2006, the EL
measures. Veikkaus’ different support functions
issued, as compared with 38 in 2007.
and UEFA made an agreement with the WLA and
also draft descriptions on their risks and follow the
FIFA to exchange information in cases of suspected
risks as part of the planning of their operations.
fraud. The cooperation continues between both
supervisors appointed by the Ministry of the Inte-
the umbrella organizations and the national gaming
Veikkaus complies with the comprehensive risk
rior. The official supervisors also confirm the results
organizations, as agreed previously. In spring 2007
management system Enterprise Risk Management
of the games and the prizes on each round. Since
the European national gaming organizations signed
(ERM). The ERM framework describes the risk man-
Veikkaus’ games are monitored by external supervi-
the Sports Betting Standards of EL, defining the
agement process in use in the company, together
sors, even the staff can play them. As regards the
prevention of the risks related to gaming.
with the related responsibilities and procedures. It
staff’s participation in Veikkaus games, specific
is integrated in the planning processes of Veikkaus’
instructions are followed, which include general
activities in a way which ensures the regular and
guidelines and a ban on certain employees’ playing
comprehensive assessment of the risks related to
of fixed-odd betting games and instant lotteries.
the business objectives and the company’s preparedness for tackling them.
10
The gaming activities are supervised by the official
Annual report 2008
MEMBER LOTTERIES OF EL – THE EUROPEAN LOTTERIES
Austria: Österreichische Lotterien Azerbaijan: Azerlotereya SJSC Belgium: Loterie Nationale Belgium Bosnia And Herzegovina: Lutrija BIH Bulgaria: Bulgarian
Sports Totalizator, Eurofootball Ltd. Croatia: Hrvatska Lutrija d.o.o. Cyprus: Cyprus Government Lottery, OPAP (Cyprus) Ltd Czech Republic: Sazka a.s.
Denmark: Danske Spil A/S, Det Danske Klasselotteri a/s Estonia: AS Eesti Loto, AS Spordiennustus Finland: RAY, Veikkaus Oy Former Yugoslav Republic
of Macedonia: Lotarija na Makedonija AD Skopje France: La Française des Jeux Germany: Bremer Toto und Lotto GmbH, Deutsche Klassenlotterie Berlin, Land
Brandenburg Lotto GmbH, Lotterie-Treuhandgesellschaft mbH Hessen, Lotterie-Treuhandgesellschaft mbH Thüringen, LOTTO Hamburg GmbH, Lotto Rheinland-Pfalz
GmbH, Lotto-Toto GmbH Sachsen-Anhalt, Nordwestdeutsche Klassenlotterie, NordwestLotto Schleswig-Holstein GmbH & Co. KG, Saarland-Sporttoto GmbH, Staatliche Lotterieverwaltung Bayerischer Fussball-Toto, Staatliche Toto-Lotto GmbH, Süddeutsche Klassenlotterie, Sächsische Lotto-GmbH, Toto-Lotto Niedersachsen
GmbH, Verwaltungsgesellschaft Lotto und Toto in Mecklenburgvorpommern mbH, Westdeutsche Lotterie GmbH & Co. OHG Greece: Greek Organisation of Football
Prognostics, Greek State Lotteries Hungary: Szerencsejatek Zrt Iceland: Happdrætti Háskóla Íslands, Íslensk Getspá Ireland: An Post National Lottery Company Israel: Mifal Hapais Israel National Lottery, The Israel Sports Betting Board Italy: Lottomatica SpA, SISAL S.p.A Kosovo: Lotaria e Kosovës Latvia: Latvijas
Loto Lithuania: Olifeja Inc. Luxembourg: Loterie Nationale Luxembourg Malta: Maltco Lotteries Ltd. Moldova, Republic Of: Loteria Moldovei SA Netherlands: De Lotto, Nederlandse Staatsloterij Norway: Norsk Tipping AS Poland: Totalizator Sportowy Sp. z o.o. Portugal: SCML - Santa Casa da Misericordia
de Lisboa Romania: Compania Nationala ’Loteria Romana’ S.A. Russian Federation: Interlot Jsc. Serbia: State Lottery of Serbia Slovakia: TIPOS, National
Lottery Company, a.s. Slovenia: Loterija Slovenije d.d., Sportna Loterija d.d. Spain: Loteria de Catalunya - Entitat Autònoma de Jocs i Apostes, Loterias y Apuestas
del Estado, ORGANIZACIÓN NACIONAL DE CIEGOS Sweden: AB Svenska Spel Switzerland: Société de la Loterie de la Suisse Romande, SWISSLOS Interkantonale
Landeslotterie Turkey: Turkish National Lottery Administration Ukraine: MSL, Ukrainian National Lottery United Kingdom: The National Lottery Camelot
alankomaat
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Pikkuakka Store, Lepaa
VEIKKAUS’ OPERATIONS
BASED ON RESPONSIBILITY
Veikkaus’ mission is to generate versatile value to Finnish society by operating
games reliably and responsibly. We respond to the demand for games with an
ethically sustainable, closely regulated alternative.
Veikkaus generates funds to its owner the Finnish State in a moderate and sustainable manner. The favourable outcome of the exclusive right is that Veikkaus
”Veikkaus promises its owner,
the Finnish State, to return
all of its proceeds, which have
accumulated in a sustainable
and responsible manner, to
be used for the benefit of
Finnish culture: sports, arts,
science, and youth work.”
funds can be channelled in whole to the benefit of Finnish society. Thus, the
winners outnumber clearly those who actually win a prize in Veikkaus games.
Gaming generates joy to the players: through the beneficiaries’ activities, all
Finnish citizens benefit from the euros spent on our games. We aim at a moderate growth to secure our beneficiaries’ activities in the long term.
EXPENSES OF THE PROMOTION
OF RESPONSIBLE GAMING
The expenses incurred by the measures taken to promote responsible gaming amounted to EUR 3.3
million (+8.3%) in 2008. This includes all the measures by which Veikkaus promotes the responsibility and integrity of gaming either in its own business operations or in cooperation with its
stakeholders and works to increase general knowledge about the national gaming system and its
significance.
In 2008 Veikkaus’ measures included gaming age-limit controls introduced to the game system and
the promotion of identified gaming, as well as the staff training programme in responsibility issues.
The expenses also covered research projects on the detriments of gaming, which Veikkaus financed
bymakingpaymentstotheMinistryofSocialAffairsandHealth,aswellasthefundingoftheFinnish problem gambling helpline Peluuri. The joint costs of these two fields of activity amounted to
some EUR 652 000 in 2008.
Corporate social reponsibility
13
KEY INDICATORS OF SOCIAL RESPONSIBILITY
2008
2007
2006
2005
2004
1,474.8
1,391.4
1,361.2
1,315.8
1,260.8
440.7
421.1
403.3
397.2
394.5
30.9
34.8
38.6
22.5
6.7
754.6
713
701.8
678.7
631.2
Salaries and wages (EUR million)
19.7
17.8
17
16.5
15.6
Number of employees (end of the year)
354
370
373
372
377
3,166
3,114
3,569
3,692
3,748
80.8
INDICATORS OF ECONOMIC RESPONSIBILITY
Turnover (EUR million)
Operating profit (EUR million)
Investments (EUR million)
Prize payout to players (EUR million)
Number of points of sales (end of the year)
Retail commissions (EUR million)
80.3
78.4
80.3
80.6
Lottery tax (EUR million)
68.3
64.8
62.9
60.6
60
407.9
397.7
401.4
382.6
375.8
Return to Ministry of Education (EUR million)
INDICATORS OF SOCIAL RESPONSIBILITY
Work enjoyment (scale1-5)
3.9
3.8
3.9
3.9
3.8
Turnover of employees (%)
5.1
7.7
9
10.9
8.0
- newly hired
10
27
33
38
34
- left
10
11
22
24
19
- retired
Average age of employees
8
10
10
19
7
43.0
42.3
42.2
42.5
42.37
Average duration of employment contracts
13.0
12.1
12.7
13.1
13.5
Expenses of occupational health care (EUR)
390,542
373,143
340,032
398,508
388,059
70,870
73,000
70,309
67,149
81,555
3,507
3,327
3,157
3,092
2,951
Registered customers (end of the year) *
836,097
612,326
360,654
315,305
242,342
Veikkaus Card holders (end of the year) **
507,807
278,575
87,013
Expenses of staff’s recreational activities and hobbies (EUR)
Average salary (EUR)
INDICATORS OF ENVIRONMENTAL RESPONSIBILITY
Electricity consumption at head office (MWh)
Heatenergyconsumptionatheadoffice(MWh)
Water consumption at head office (m3)
*
**
14
4,540
4,350
4,090
3,750
3,500
2,541
2,559
2,689
2,785
2,791
4,230
4,300
5,500
4,000
4,100
For 2004 and 2005, the figures indicate the holders of gaming accounts; from 2006 onwards the number of customers
Veikkaus Card was launched in September 2006
VEIKKAUS’ SOCIAL RESPONSIBILITY PROGRAMME
Veikkaus aims at a wide customer basis playing
Veikkaus offers tools for self-control of gaming:
Veikkaus bears responsibility for problem
with reasonable stakes so that the amounts indi-
- optional self-ban on gaming for three months
gambling:
vidual customers spend on Veikkaus games would
– optional self-ban on gaming for the rest of the day
- Veikkaus offers information about problem
not overly burden their finances.
- optional gaming limit for days, weeks, or months
– game account balance can be ordered by email
Veikkaus aims at increasing the degree of identi-
to make it easier for the players to monitor their
fied gaming by promoting the use of Veikkaus Cards
own gaming behaviour.
at the points of sales and the number of registered
customers on the internet.
gambling at its points of sales and website.
- Veikkaus makes sure that its staff and sales
clerks know what problem gambling is all about
and where people suffering from it can seek help.
- Veikkaus assumes part of the expenses of the
Veikkaus makes use of a responsibility evaluator tool for the ethical evaluation of game ideas and
Veikkaus has imposed restrictions on gaming:
distribution channels, in order to be able to spot the
- Gaming is subject to age limits – 15 years at the
ProblemGamblingHelplinePeluuriandtakespart
in its development.
- Veikkaus finances part of the research into gam-
possible addictive features that may lead to prob-
ing detriments carried out by the Finnish Ministry
points of sales and 18 years in the electronic
lem gambling. The Responsibility Evaluator is part of
ofSocialAffairsandHealth.
channels.
Veikkaus’ product development process.
Veikkaus aims at fighting crime and working to
- Games are not sold on credit.
- Games cannot be played in the night time – not
even on the net.
Internet gaming is subject to daily limits of
expenditure on instant games
- regulated by the game rules
• dailyandbet-specificlimitsonLiveBetting
Veikkaus’ marketing communications
promote measures against money laundering.
adhere to strict ethical guidelines:
- Veikkaus’ marketing communications do not
Veikkaus bears environmental responsibility
give misleading information, nor do they offer
in its own activities and requires its partners in
unrealistic ideas about the chances to win.
cooperation do so, too.
- In marketing, Veikkaus avoids the idealization of
entries
gaming and advertisements encouraging people
Veikkaus aims at a moderate and sustained
- regulated by the game rules
to play; and respects the consumers’ individual
growth of its profit.
• dailymaximumlimitsongaming
• optionalmaximumbalancelimitongaming
accounts.
rights.
- Veikkaus’ marketing communications are not
Promoting Veikkaus’ corporate responsibility
directed towards consumer groups that are
belongs to every employee and is a natural part of
especially vulnerable in view of their age, social
all our activities and work in practice.
status, or other special characteristics.
15
ACTIVE INTERACTION WITH STAKEHOLDERS
STAKEHOLDER
STAKEHOLDER EXPECTATIONS
PLAYERS
Interesting, entertaining and reliable gaming offerings.
Fulfilling the promises of our products and services. Secure and reliable prize payout.
Correct and explicit information about games and gaming.
Good and reliable reputation as a game provider.
OWNER
The Finnish State; Ministry of Education
Moderate, sustainable and secure profit development. Efficient activities. Responsible
gaming.
PARLIAMENT, RELEVANT MINISTRIES
Regular proceeds, tax revenue. Responsible gaming, especially measures taken to
prevent the social problems of gaming. Nationwide employment impacts.
STAFF
Secure workplace. Equal opportunities. Career development opportunities.
Motivating workplace community and rewarding jobs. Responsible and equal
management.
RETAILERS AND GAME SALES STAFF
Source of livelihood. Explicit operating guidelines. Reliable and responsible partner.
Competitive offerings. Sales support functions. Up-to-date, comprehensive information and training.
NATIONAL GAMING ORGANIZATIONS OF OTHER COUNTRIES
Securing the continuity of the national gaming systems. Promotion of responsible
gaming. Active cooperation and information exchange, benchmarking.
and the umbrella organizations EL and WLA.
EUROPEAN COMMISSION
Responsible gaming policy. Prevention of social problems and crime. Channelling gaming to legally operated games.
BENEFICIARIES
Proceeds, return of funds. Ensuring the continuity of the system. Possible forms of
marketing cooperation.
in the fields of the arts, sports, science, and youth work
PARTNERS IN COOPERATION
and other partners
16
Open, fair and innovative activities. Dependable agreements. Long-lasting
cooperation relations.
THE MEDIA
Open cooperation. Social responsibility and reliability. Efficient, fast and transparent
activities. Accessibility.
IMMEDIATE COMMUNITIES
Interaction. Predictability. Constructive and active local operator and employer.
VEIKKAUS’ MEASURES
INDICATORS
Entertaining games; dreams, excitement, and entertainment. Versatile offerings
targeted at different customer segments. Comprehensive sales network. Reliable
prize payout. Accurate customer guidance and game instructions. Transparent
activities. Strong consumer protection. Responsible product development. Financing
ofresearchintoproblemgamblingandProblemGamblingHelplinePeluuri.
Sales development. Changes in consumer behaviour and customer profiles.
Surveys of corporate image and customer satisfaction.
Quality and quantity of feedback and recommended decision procedures.
Quality and quantity of calls to Peluuri helpline.
Regular proceeds. Regular contacts with the owner.
Information about the development of the result and the operations in general.
Achieving the return objective. International comparisons within the sector.
Strict compliance with the Lotteries Act and the national gaming policy. Efficient
and responsible activities. Active work for the prevention of the detriments of
gaming. Direct and indirect employment impacts.
Proceeds and taxes returned. Coverage of retailer network. Occurrence of social
detriments of gaming. Number of jobs; salaries paid.
Solid economy. Versatile training programme, job rotation opportunities within the
company, maintenance of working capacity, encouraging incentive scheme, investing
in internal communications. Equal opportunities programme. Active development of
leadership and planning of operations.
Surveys concerning the staff and their working capacity, performance and career
development discussions. Turnover of employees, absence from work, age of
retirement. Incentive scheme.
Versatile offerings, reliable prize payout. Responsibility for information systems,
terminals, sales equipment, guidance, marketing and communications. Comprehensive
retailer training programme.
Sales development and distribution by districts and outlet types. Changes of
points of sales, payment times of sales profits. Customer and retailer satisfaction
surveys.
Being an active player in the executive committees and working groups of the
umbrella organizations. Taking initiatives and being a groundbreaking partner in
cooperation. Encouraging others to information exchange and cooperation.
Reinforcing the system of national exclusive rights. Participating in seminars and
meetings. International comparisons, statistics, and research projects.
Promoting social responsibility, especially by taking measures to prevent social
problems and crime. Open and active information sharing. Active contacts with the
Finnish MEPs.
Development and nature of the social problems of gaming. Peluuri helpline statistics.
StudiesbytheMinistryofSocialAffairsandHealth.Internationalcomparisons,
statistics and research projects. Measures and statements supporting the national
gaming systems.
Regular proceeds. Efficient operations. Open, interactive cooperation.
Development of proceeds. Achieving the objectives of marketing and game event
cooperation. Corporate image surveys.
Strategic partnerships, partner agreements and strategies. Versatile cooperation
agreements. Bringing gaming expertise into the cooperation.
Number, contents and nature of partnerships. Number, contents and nature of
cooperation agreements. New offerings, product development.
Open, fast, reliable, and many-sided communications. Availability and active provision
of information. Extensive cooperation. Active contacts. Explaining the special features
of the gaming sector.
Nature of public debate; daily media follow-up. Number of contacts and
communications. Corporate image and communications surveys.
Contacts and cooperation.
Responsible, stable activities in the immediate community.
Environmental load. Number of jobs.
Corporate image surveys.
17
RESPONSIBLE PROFIT
In order that the Finnish State as Veikkaus’ owner
could secure the activities of the beneficiaries of
Veikkaus funds even in the future, Veikkaus aims at
attaining profit especially by increasing its gaming
margins and economic profitability. We aim at a
sustainable and moderate growth of our turnover.
In marketing and sales promotion, we pay special
attention to games that involve fewer risks to our
customers and where the gaming margins are high,
as in the lotto games. Veikkaus’ objective is to
attain as wide a customer base as possible, playing
with moderate stakes. To channel the demand for
games towards legal and controlled gaming, we
need to be able to market our services.
However,wedonotwantourmarketingmeasures
to encourage people to large-scale expenditure on
games or give a misleading picture about the players’ real chances of winning.
SOCIAL RESPONSIBILITY
AS THE CORNERSTONE
Gaming is about the redistribution of the monetary stakes invested in the game between the
participants. Gaming is organized in such a manner
that the game provider will always win in the end,
although around a half of the proceeds are distributed to the players as prizes. The redistribution
of the gaming proceeds takes place between the
players and the game provider.
Veikkaus’ proceeds, over one million euros a day,
are returned to Finnish society in total. The Ministry
of Education distributes Veikkaus funds to Finnish
culture – the arts, sports, science, and youth work
– in accordance with the Funds Distribution Act laid
down by the Finnish Parliament.
In addition to the direct employment impacts
Veikkaus employs a large number of people
indirectly. When we count in the multiplier effects
of production, services, and consumption, we are
talking about tens of thousands of person years of
employment.
DRAWBACKS OF GAMING
The Finnish national gaming system is based on
the ideology of responsibility. The exclusive right
is a means by which the Finnish authorities can
control gaming and competition, which would lead
into an aggressive tempting of the people to play if
they were left uncontrolled. Gaming will be fun and
entertaining, as long as it is proportionate to the
players’ own wallets.
In principle all gaming involves elements that may
cause addiction. The risks will increase when the
event frequency grows and the offerings are made
more extensive. The players may also overestimate
their chances of influencing the outcome of the
games. By definition, a problem gambler is a person
to whom gaming causes financial, social, or healthrelated problems.
A big-time player is not necessarily a problem gambler. The big-time players can often manage their
gaming without risking their financial situation.
However,gamingisalwaysassociatedwithstrong
financial interests – and therefore also a risk of
misuse, fraud, and organized crime.
VEIKKAUS BEARS ITS RESPONSIBILITY
The CSR survey commissioned by Veikkaus and
>> CORE OBJECTIVES OF SOCIAL RESPONSIBILITY FOR 2008
• Internetlearningmoduleforthestaffrealized(TheResponsibilityNet).
- The Responsibility Net was launched at the beginning of October; by the end of the year,
304 employees had taken the course with a passable grade.
• MaterialonVeikkaus’CSRpreparedforstakeholders.
- Beneficiary video made.
• CSRcommunicatedactively.
Veikkaus’ corporate social responsibility is based
especially on our great responsibility towards the
players, beneficiaries, and the staff. The social
responsibility materializes in, e.g., a secure gaming
environment for the players. Our objective is to
maintain a wide customer base playing with small
stakes in a way that does not burden the finances
of individual customers significantly.
SIGNIFICANT INVESTMENT
IN THE WELFARE OF SOCIETY
Veikkaus’ economic success has a wide impact on
Finnish society. The euros spent on our games
benefit the players, retailers, staff, and the Finnish
State in the form of gaming proceeds and taxes.
18
- Responsibility was taken into account in all communications to the customers, sales staff,
and personnel.
• DevelopmentofResponsibilityEvaluatorfinalized.
- Reformed Responsibility Evaluator part of the updated product development process.
• Numberofidentifiedcustomerswillbefurtherincreased.Identifiedgamingincludesplayingby
using Veikkaus Cards and internet gaming.
• Customerbasedevelopedinaresponsiblemanner.
• MeasuresrequiredbythenewLotteriesActwillbeplanned.
• CSRrealizedinallVeikkaus’operations.
• ResponsibilityEvaluatorusedsystematicallyaspartoftheproductdevelopmentprocess.
carried out by the Finnish market research house
Taloustutkimus in summer 2008 showed that
nearly all Finns (96%) regard it as important or
very important that Veikkaus funds are returned to
Finnish society. According to the survey, Finns are
in favour of the exclusive right: more than eight out
of ten Finns consider it a good thing that Veikkaus
has a monopoly in gaming and that Veikkaus funds
stay in Finland.
The majority of the respondents (69%) in the
survey were not in favour of the liberalization of the
provision of games by foreign operators in Finland.
Around 70% of the respondents regarded Veikkaus’
activities as more responsible than those of foreign
gameproviders.Halfoftherespondentsthought
we had done well or very well in the implementation
of responsible gaming. Veikkaus was also praised
for its reliability and integrity.
According to the Companies and CSR 2008 survey,
performed by TNS Radar in spring 2008, Veikkaus
was the second most responsible company in
Finland, all sectors of corporate responsibility considered. Further, over a third of the respondents said
that Veikkaus had managed to communicate its CSR
either well or very well. The survey covered a total
of thirty large companies.
RESPONSIBILITY PART OF ALL ACTIVITIES
Our objective for 2008 was that social responsibility should be implemented in all our activities. The
concrete measures to attain this objective were the
responsibility training of the staff; the preparation
of CSR material for the partners in cooperation and
other stakeholders in the sports sector; as well as
the activation of CSR communications. Moreover,
we continued to develop the Responsibility
Evaluator Tool for the ethical evaluation of game
ideas in cooperation with the Finnish Slot Machine
Association RAY.
We have made responsibility one of our core corporate objectives in 2009. Responsibility constitutes
one of the four focal areas in Veikkaus’ activities,
with concrete measurable objectives.
Customers like family members
Lepaa
VILLAGE STORE INVESTS
IN PERSONAL SERVICE
In the idyllic village of Lepaa in the southern
Finnish region of Häme, there is a store called
Pikkuakka. Pikkuakka takes pride in recognizing
its customers and their needs. ”Our customers are
mainly village people we know personally. There
are few passers-by, but in the summer time, people
who have summer cottages in the region come to
the store in large numbers”, says the store owner
Erja Vehkamäki.
Pikkuakka’s absolute drawing card is that the games
are sold personally. Every customer is unique, and
Erja is sure to remember the special needs of the
regular customers, attending to them each day.
”I make sure that the specific games and syndicate
games are ready for them before they come to
the store. The customers expect the sales staff
to know and understand the games and to give
advice, if need be.”
Keno is the unquestionable number one among the
games sold in Pikkuakka. As an innovative person,
Erja has made special Keno syndicates for all the
people of the village. ”We have, for example, Akka’s
BackKeno, Akka’s ForthKeno and Akka’s DozensKeno”, Erja tells us.
THE ONLY VEIKKAUS’ OUTLET IN THE VILLAGE
Erja decided to apply for rights to sell Veikkaus
games at Pikkuakka a year and a half ago, as the
game system was reformed. ”It was the right moment for us. Veikkaus games weren’t sold anywhere
in the village and some people had learnt how to
play on the internet. But you can clearly see that
many people prefer personal service; they can have
a chat about what’s going on the same time”.
The fact is that small village enterprises have
a great responsibility for preserving the local
services in small places. In Pikkuakka, you cannot
only do your grocery shopping and play Veikkaus
games, but there is also a post office, a café and a
barbershop in the same facilities.
Erja is pleased that the proceeds from Veikkaus
games are channelled to the good causes – for the
benefit of the arts, sports, science, and culture.
”They all boost the community-spirit. We could, in
fact, talk about the good causes even more.”
K-citymarket Keljonkeskus, Jyväskylä
CUSTOMER RELATIONS VALUED
Veikkaus’ activities are guided by customer focus and responsibility. Playing our
games is based on wide participation and reasonable stakes. Our customers play
identified by using their Veikkaus Cards or playing through our internet gaming
service or via their mobile phones. Identified playing guarantees a secure collection of winnings and gives the players a chance to follow their gaming history on
“Veikkaus’ sales staff, customers, just like the professional auditors, rate Veikkaus’
information service as one of
the best in Finland.”
TNS Gallup 2008
the web.
Veikkaus Card, which was launched in autumn 2006, has been strongly increasing
its popularity. At the end of 2008, there were over 500 000 Veikkaus Card holders (as compared with 280 000 at the end of 2007). We are aiming at 725 000
card holders by the end of 2009.
Customer relations
21
GOOD CUSTOMER RELATIONS
were divided into different segments. With the help
Veikkaus’ objective is to attain around one million
LEAD TO IMPROVED SERVICE
of the new segment model, we can acquire more
registered customers by the end of 2009.
Veikkaus has been building its customer strategy
accurate information on how Veikkaus’ customer
since 2004. The customer strategy was reformed
service and offerings should be developed in the
At the end of 2008, the share of identified gaming
in the year under review and renamed as the
future.
of the total sales was about 34%. Increasing the
degree of identified gaming is one of Veikkaus’ key
Customer Relations Strategy. Our customer base
keeps increasing, providing a central basis for the
CUSTOMER RELATIONS ON
management of the business operations and the
CONTINUOUS INCREASE
improvement of customer service.
Veikkaus’ customers have been happy to welcome
In addition to Veikkaus Cards and internet gaming,
the system of identified playing and the related
some of our customers are still using the Winnings
From Veikkaus’ perspective, good customers are
services. Veikkaus’ customers can play identified by
to Bank Account slips, which will be withdrawn
those who register as our players and play multiple
showing their Veikkaus Cards at our points of sales,
permanently in the summer of 2009.
games with reasonable stakes. We have been ana-
logging into our internet gaming service, or by using
lysing our customers and their purchasing behaviour
their mobile phones to play. By opting for identified
REGULAR CUSTOMER CONTACTS
for years in order to meet the players’ individual
gaming, our customers can make sure that they have
Veikkaus’ customers are interested in obtaining in-
needs better. Information has been obtained by
access to better services when it comes to, e.g., cus-
formation on topics related to our games. We reach
interviews, consulting Veikkaus’ customer manage-
tomer communications, following their own gaming
the customers by different means of customer
ment system, and conducting attitude surveys.
history, and secure payout of the possible prizes.
relations communications. In 2008, we sent direct
strategic goals for 2009.
emails to 275,000 customers on the average, i.e.
During the year under review, our customer research
focused on the analysis of Finns’ gaming behaviour
By analyzing the data obtained through identified
around 35% of our registered players. We also pub-
as seen against their life stage; and the customers
gaming we can develop our products and services
lish the customer magazine X, which covers topical
to meet our customers’ needs better. This way,
issues concerning Veikkaus and the games. Four
we can guarantee that the correct products are
issues of the customer magazine came out in 2008.
CUSTOMERS BY LEVELS
OF IDENTIFICATION
provided to the right people in the right place and at
the right time.
2008
VEIKKAUS CARDS IN 2008
600,000
500,000
400,000
share of sales *
VEIKKAUS’ INTERNET GAMING SERVICE
KIOSKIT 46,5 %
VEIKKAUS CARD
VERKKOMYYNTI 18,1 %
UNIDENTIFIED
19.2%
10.9%
64.9%
SUURET PÄIVITTÄISTAVARAMYYMÄLÄT 17,1 %
WINNINGS TO BANK ACCOUNT SLIPS
HUOLTOASEMAT 11,6 %
* The share of identified gaming is given per sales,
PÄIVITTÄISTAVARAMYYMÄLÄT 3,7 %
notPIENET
per turnover.
KAHVILAT, RAVINTOLAT 3,0 %
22
MUUT 2,5 %
Customer relations
5.1%
(average)
300,000
200,000
100,000
0
January
1975
February1980March
April1985 May
June
1990
July
August
1995 September October
2000
November December
2006
0,53 0,620,520,610,610,560,570,580,650,720,660,65 0,690,670,730,730,690,700,780,880,840,930,94 0,960,900,940,860,830,830,83
0,82 0,83
CUSTOMER BENEFITS EASILY ACCESSIBLE
PROTECTION OF CUSTOMER
still contact us by phone, but internet contacts are
Most Veikkaus’ customers have cited smooth prize
PRIVACY A MATTER OF HONOUR
on constant increase. The customer contacts to the
payout directly into their bank accounts and the
As the number of customers and the amount of
information service number some 12,000 a month
free subscription of Veikkaus’ customer magazine
customer information increase, data protection and
on the average, whereas the sales clerks contact
among the most tangible benefits of the customer
its reinforcement gain more focus in Veikkaus. We
the information service 5,000 times per month. The
relationship. Further, our customers can also profit
have a special Data Protection Team which works
customers’ toll-free helpline answers calls every 34
from their status as Veikkaus’ customers by par-
to develop and coordinate matters related to the
seconds on the average and the sales staff’s helpline
ticipating in special draws, and accessing discounts
protection of our customers’ privacy. The team
receives calls once in 25 seconds.
and free benefits. The customer benefits are often
has members from different functions and units.
associated with Veikkaus’ beneficiaries and partners
The models of operation are developed coopera-
Right at the beginning of the introduction of the
in cooperation both in Finland and abroad. During
tively according to the instructions issued by the
final stage of Veikkaus’ game system reform in
the year under review, the players had the chance to
Data Protection Ombudsman. The Privacy Policy
November, there were a couple of problematic
participate in the customer benefit draws by playing
Statement at Veikkaus’ website explains what the
situations. Our information service was contacted
identified or by giving their Veikkaus Card numbers
customer data are used for and how the customers’
by customers 3.5 times more often than usual; the
at Veikkaus’ website or over their mobile phones.
personal data are stored. The customer relations are
contacts from the sales staff grew nine times more
developed in our customers’ best interest.
frequent. The customers and sales staff had to
wait on the line up to two minutes on the average.
Veikkaus’ Customer Loyalty Programme includes difVeikkaus’ Privacy Policy Statement in Finnish:
www.veikkaus.fi /tietosuoja
However,thesituationwasnormalizedsoon,bythe
people about Veikkaus’ social importance. The
VEIKKAUS’ INFORMATION SERVICE
Veikkaus’ information service has received very
benefit categories in 2008 were the Golden Tickets,
HELPS CUSTOMERS AND SALES STAFF
good feedback on its service capacity and the short
Bonus Benefits, and Card Benefits.
Veikkaus games involve tens of thousands of gam-
waiting times in the past few years. In a Mystery
ing transactions each day. Thus, the players need
Shopping survey carried out by TNS Gallup in 2008,
The benefit events of the year gave Veikkaus’
constantly information about games and game
Veikkaus’ customer service was given the average
customers the chance to participate, e.g., in the
results. Veikkaus’ information service offers the cus-
grade of 3.6 on the scale from 1 to 4 (3.7 in 2007),
Savonlinna Opera Festival, football matches, and a
tomers help in games, game results, prizes, and other
and Veikkaus’ support service was given the grade
broadcast of a Lotto draw, and to see a new Finnish
questions related to Veikkaus. The information serv-
3.7 (3.6 in 2007). Veikkaus’ sales staff, customers,
movie. Golden Ticket events were offered to some
ice is open whenever the gaming system is open,
just like the professional auditors, rated Veikkaus’
200 Veikkaus’ customers in 2008 (75 customers
seven days a week. The majority of the customers
information service as one of the best in Finland.
ferent benefit categories with changing contents.
The primary objective of the programme is to make
end of November.
our customers committed to Veikkaus and to inform
in 2007). Bonus benefits were granted to 1 400
customers, and 58 000 Veikkaus’ customers used
their Card Benefits. The development of Veikkaus’
>> CORE OBJECTIVES OF CUSTOMER RELATIONS FOR 2008
Customer Loyalty Programme continues.
• Growthobjectivesofcustomerrelationsattained
– Registered customers number around 836,000 and holders of Veikkaus Cards around 510,000.
The objective for 2009 is to make Veikkaus’
customers more aware about the benefit concept
>> CORE OBJECTIVES OF CUSTOMER RELATIONS FOR 2009
and to offer more and more of our customers a posi-
• Identifiedgamingwillincreaseinpointsofsales.
tive, concrete experience of what it means to be a
• People’sconceptionofVeikkaus’brandwillimprove.
Veikkaus’ customer. We also want to communicate
• Structureofcustomerbasewillbedevelopedresponsibly.
our significance to Finnish society more effectively.
Customer relations
23
POPULARITY OF VEIKKAUS’ WEBSITE CONTINUES TO INCREASE
More and more Finns play Veikkaus games on the
In the year under review, we introduced web pages
web, although the majority of our customers still
related to our game products, including the Keno
go to a retail outlet to play. Veikkaus’ web service
School where people were taught to play Keno,
www.veikkaus.fi ranks among the largest web
and the Keno Number Show, which told about the
stores in Finland, with an annual turnover of
backgrounds and beliefs behind numbers. In 2009
EUR 299.4 million. The games can also be played via
the website contents will be supplemented with
wap, and some of them by sms.
more video clips from sports events, as well as live
INTERNET GAMING
TURNOVER
EUR MILLION
111
160 205 252 299
300
250
broadcasts.
200
web service increased by 18.9%, representing
Since 2007, a set of tools for the self-management
150
20.3% of the entire turnover (+6.0%). We had some
of gaming have been made available at Veikkaus’
468 000 customers on the net in 2008 (378 000
website. By using them, our players can control their
in 2007).
gaming independently and set stake restrictions
As compared with 2007, the sales over Veikkaus’
and self-bans of different duration on their playing.
In a survey carried out by the Finnish market
Veikkaus’ internet gaming service is not available in
research house Taloustutkimus in 2008, Veikkaus
the night time, but the games are offered from 7:00
belonged to the most highly valued fifth among
am to 10:00 pm on weekdays and Saturdays; and
the web brands; ranking 23rd of all of them (the
from 8:00 am to 10:00 pm on Sundays.
100
50
0
2004 2005 2006 2007 2008
rank was 26th in the years 2006 and 2007). Of the
respondents who were familiar with Veikkaus’ web
Since Veikkaus only provides internet games to
Keno and Lotto are also in favour. Lotto’s popularity
service, 60% graded it good or very good (on the
players living in Finland, we verify the identity of
as an internet game increased by 37% in 2008. In-
scale from 8 to 10), whereas 79% of the users of
everyone who wishes to register as our customer
ternet gaming has been showing constant growth.
the web service graded the service at least good.
with the Finnish Population Register Center. Our in-
In November 2008 (round 48/08) we attained a
Among the Finns to use the Internet every week
ternet games are only available to customers of 18
round-specific sales record of EUR 8.7 million, which
74% recognized Veikkaus as an internet brand.
years or older. Every month, around 300 000 Finns
was 21.7% of Veikkaus’ sales per round.
play through Veikkaus’ internet gaming service,
WEBSITE FOLLOWING ITS TIME
and their number is on steady increase. All in all, we
The design of Veikkaus’ website was developed
registered around 94 million gaming transactions
and its structure was made clearer in 2008.
on the net (around 88 million in 2007). The most
Especially sports events were given more focus
popular games on the net are sports games, but
on the website in the form of new contents and
video clips. Veikkaus has aimed at awakening sports
lovers’ interest in Finnish events by calling attention
Turnover of internet gaming per game group 2008
to domestic football matches, smaller events, and
interesting personalities from the world of sports
Betting games
through video clips.
Lotto games
Customer relations
Share in %
106.0
35.4
Change in %
4.9
75.5
25.2
31.9
Other sports games
31.7
10.6
30.7
Other games
86.2
28.8
24.4
299.4
100.0
18.9
Total
24
EUR million
VEIKKAUS’ SALES NETWORK COMPREHENSIVE AND SERVICE-MINDED
The majority of Veikkaus’ sales, 79.7%, come from
our points of sales, located all over in the country
and numbering over 3 150 at the end of 2008.
In 2008 we achieved the objective of creating a
uniform Veikkaus design that would cover at least
2 400 of our points of sales. We also continued to
invest in Veikkaus Card. Our aim was to increase
the number of subscriptions of the card and to
promote identified gaming, e.g., through marketing
campaigns; by discontinuing the deliveries of the
old Winnings to Bank Account slips to the points of
sales; by rewarding the sales staff and by arranging
competitions for them. As a result, there were over
220 000 new card subscriptions in 2008, 65% of
which were made through retailers.
The single most important change concerning the
points of sales was carried out in November when
Veikkaus new central game system was introduced.
This was the last stage of the biggest investment
of Veikkaus’ history, initiated in 2005 with the
objective of modernising the support systems of
the entire game system.
GAMES ALL OVER FINLAND
The current sales network covers the need for
Veikkaus’ services in the entire country. Each point
of sales has a minimum sales estimate which it has
to attain to ensure that it can continue as Veikkaus’
retailer. In addition, we guarantee that Veikkaus’
services are offered even in places where it would
not be justified from the perspective of business
operations to establish a point of sales, i.e. in
outlying areas, hospitals and various institutions.
Veikkaus has currently around 250 service retail
outlets. Veikkaus continued to work in cooperation
with different Finnish trade chains, e.g., Rautakirja,
the K-Group, and the S-Group in 2008.
Kiosks and convenience stores are still the most
popular outlet type. Following the general overall
trend towards centralisation in trade, grocery stores
and service stations have also increased their
shares of Veikkaus’ sales. In contrast, smaller points
of sales which are not part of trade chains continued to sell less as a result of the ongoing transition
of the retail trade.
NUMBER OF POINTS OF SALES AND
REGIONAL SHARES OF POINT-OF-SALES
SALES 31 DEC 2008
Veikkaus pays its retailers an average sales commission of 6.8%*. In 2008 the retail commissions
amounted to a total of EUR 80.3 million.
SALES STAFF’S SKILLS ARE CENTRAL
Veikkaus points of sales employ over 15 000 game
sales clerks, who have a central role in Veikkaus’
customer encounters. Veikkaus takes care of the
sales clerks’ professional skills by offering them
training in game sales.
In addition to knowledge on games and selling, the
training events also offer the sales staff information on responsible gaming, e.g., issues related
to age limits and problem gambling. Responsible
gaming is regularly dealt with in Veikkaus’ retailer
magazine. In 2008, Veikkaus published a special
Responsible Game Sales Clerks’ Guide, which was
distributed, e.g., to all our game sales clerks who
took part in the training for the first time. The
Guide covers various responsibility issues, such as
compliance with the age limits; knowledge about
problem gambling; and advice on how to dispose of
the point-of-sales materials in an environmentally
friendly way.
FINLAND
TOTAL:
3,166 (100%)
EASTERN AND
NORTHERN FINLAND:
878 (25.1%)
WESTERN
FINLAND:
1,156 (36%)
SOUTHERN FINLAND:
1,132 (38.9%)
Veikkaus’ sales training staff organized 340 training
events during the year under review, and a total of
some 4 500 game sales clerks took part in them. In
addition, nearly 60 different events were offered to
the game sales staff and the personnel in charge of
the coordination of Veikkaus’ activities in the points
of sales. The Veikkaus Cruise, organized every autumn, was the most important of the events. Nearly
one thousand sales clerks took part in it.
*
Percentage of compensations of the retail sales turnover.
Customer relations
25
SALES PER POINT-OF
SALES T YPE 2008
2008
In 2009 we will launch a renewed training programme with the objective of guaranteeing that
the sales staff know Veikkaus’ basic products well
and ensuring that each point of sales has at least
one sales clerk who has deeper knowledge of
gaming issues. We are also going to introduce an
internet training programme to serve as a basis for
independent studies in game sales.
KIOSKS
42.6%
KIOSKIT 46,5 %
INTERNET SALES
20.3%
VERKKOMYYNTI 18,1 %
LARGE GROCERY STORES
17.0%
SUURET PÄIVITTÄISTAVARAMYYMÄLÄT 17,1 %
SERVICE STATIONS
11.4%
HUOLTOASEMAT 11,6 %
SMALL GROCERY STORES
4.2%
PIENET PÄIVITTÄISTAVARAMYYMÄLÄT 3,7 %
CAFÉS, RESTAURANTS
KAHVILAT, RAVINTOLAT 3,0 %
OTHER
2.6%
1.9%
MUUT 2,5 %
RETAIL COMMISSIONS
SERVICE TO SUPPORT GAME SALES
Veikkaus is in charge of the maintenance of its
online terminals and data connections. When faced
with a problematic situation, the sales clerks can
call a special helpline, which offers them advice and
support every day during the opening hours of the
game system. In order to support the game sales,
Veikkaus also provides the retailers with materials
related to promotional campaigns, tools for sales
promotion, point-of-sales equipment, info leaflets,
and a professional retailer magazine.
EUR MILLION
90
81
81
80
78
80
In 2008 we made the campaign processes of the
points of sales more effective and uniform; and
the campaign deliveries were combined into clear
entities.
INDEPENDENT MYSTERY SHOPPING
In the year under review, Veikkaus adopted the Mystery Shopping survey method: the survey staff of
TNS Gallup Oy toured Veikkaus’ points of sales and
wrote down what they saw. The survey showed,
e.g., that the marketing materials which were supplemented with specific instructions were placed in
the right advertising locations in the points of sales
in 80% of the cases. Instead, the survey staff were
not asked whether they were holders of Veikkaus
Cards, although the sales clerks had been specifically encouraged to do so. Three different Mystery
Shopping tours covered a total of 300 points of
sales, i.e. the survey staff made a total of 900 calls
at the different points of sales.
The retailers’ views are important for Veikkaus. In
2008 we also performed three Retailer Barometer surveys, investigating the retailers’ views of,
e.g., the services, communications, training, and
80
>> CORE OBJECTIVES OF THE SALES NETWORK FOR 2008
70
• Retailsalesincreased
- Retail sales increased by 2.7% in the year under review.
60
• Identifiedgaminginpointsofsalesincreased.
- In 2008 the share of identified gaming increased; during the best week of identified gaming
50
(round 45/2008), 13.2% of the gaming transactions were based on gaming using Veikkaus Cards
(8.2% on the best round 49/2007).
40
• UniformVeikkausdesigntoatleast2400pointsofsalesbytheendoftheyear.
- The objective was attained.
30
>> CORE OBJECTIVES OF THE SALES NETWORK FOR 2009
20
• Retailsaleswillshowmoderategrowth.
• Activepointsofsaleswilltotal3200.
10
• Theshareofidentifiedgamingofretailsaleswillincrease.
• Toolsforthemotivationofthesalesstaffwillbedeveloped.
0
2004 2005 2006 2007 2008
26
Customer relations
marketing materials provided by Veikkaus. The last
barometer survey of the year showed that, as a
result of Veikkaus’ active training programmes to
the sales staff, 100% of the respondents said they
had fair knowledge of Veikkaus’ products, and as
many as 70% said their knowledge of the products
was good.
The Sales Clerks’ Council, which has 20 game sales
clerk members and was established in autumn
2007, continued its operations. The Sales Clerks’
Council provided Veikkaus with a group of highly
skilled sales clerks with whom we could test the
different activities in practice. The membership of
the Council is based on voluntary participation and
the sales clerk members’ interest in offering their
own input to the development of game sales. The
Sales Clerks’ Council convened twice during the year
under review on Veikkaus’ request. In addition, the
Council members participated actively in different
activities, e.g., by answering email queries. In 2008,
the Council members discussed, e.g., the following
issues: the display of instant games and syndicate
games; the competitions for the sales staff; the
usability of the terminals, and the reform of the
internet service for the sales staff titled Myynet.
The Council will continue its work in 2009.
AIMING AT SMOOTHER
POINT-OF-SALE OPERATIONS
The most important objectives of 2009 include
increasing the total retail sales to a moderate
extent, assuring the number of active points of
sales, increasing the share of identified gaming, and
supporting and motivating the game sales staff
through, e.g., a new training programme. We will
also continue to make sure that, e.g., the age limits
are being complied with and the money laundering
and supervisory reports are filed. We are planning
to launch the retailers’ internal audits and to make
auditing tours of the points of sales in 2009.
Red colour and good service attract customers
Jyväskylä
VEIKKAUS’ POINT OF SALES
ON THE BEST SPOT IN A SUPERMARKET
”K-citymarket Keljonkeskus in Jyväskylä in Central
Finland is swarming with people. The red furniture
of Veikkaus’ point of sales, the striking design and
the good service attract customers in the middle
of the busy shopping centre. The customers buy
games at Veikkaus’ outlet whilst doing their shopping in the supermarket.
”Most of the customers are regulars whom we
know already. When one of the regulars comes
to buy a game, I can usually remember what he
wants”, says Veikkaus’ sales clerk Päivi ”Birgitta”
Minkkinen.
Of course, there are also plenty of occasional customers in a large shopping centre; they, too, are offered
kind and professional service. ”The increased game
offerings have an effect on our customers’ service
demands. Our clerks need to have more and more
expertise and be more service-minded”, says Päivi.
Päivi is no novice in the game sales business. She
started her career as a game sales clerk as early as
some twenty years ago. ”During that period, a sales
clerk’s job has taken many more forms; the online terminal was an especially big step forward in its time.”
VEIKKAUS CARD A HIT PRODUCT
The customers of the point of sales at K-citymarket
Keljonkeskus have been happy to adopt Veikkaus
Card. They have been busy filling out order forms;
and the card’s idea has been considered good in
general. ”The card brings with it nice by-products,
such as the special draws, like the hybrid cars that
were drawn in the autumn.”
Large syndicate games are the drawing card of the
outlet Päivi works in. “They are so popular that we
even had to order a special stand for them. And if
there are service forms available in other outlets
that we don’t have here, we’ll get them, too.”
Päivi thinks the best part of her job is the interaction with the customers. ”It always feels great
when the customers come to tell me personally
about their wins.”
R-Kiosk Silta, Porvoo
VEIKKAUS’ ECONOMIC
SUCCESS BENEFITS FINNS
Veikkaus has been granted the exclusive right to operate betting, pools and lottery games in Finland. Our current gaming licence entered into force at the beginning of 2007 and will be effective until the end of 2011. Finns played Veikkaus
games for a record-high amount of EUR 1 474.8 million in 2008. Over a half of
this, i.e. EUR 754.6 million, was paid out to players as prizes. Veikkaus’ profit for
the financial year was EUR 449.1 million, of which the majority,
EUR 407.9 million, was distributed by the Finnish Ministry of Education to the
Finnish arts, sports, science, and youth work. The difference between Veikkaus’
profit and the amount returned to the Ministry of Education, EUR 41.2 million, will
be distributed to the beneficiaries of Veikkaus funds as specified at a later date.
Veikkaus paid a total of EUR 85.7 million of tax in the year under review.
EUR 68.3 million of it was lottery tax and EUR 17.4 million value added tax.
PRIZE PAYOUT
TO PL AYERS
EUR MILLION
The commissions we paid to our retailers amounted to EUR 80.3 million.
Veikkaus’ operating expenses totalled EUR 122.4 million, of which the personnel
expenses represented EUR 24.9 million.
The distribution of Veikkaus’ proceeds is laid down by law, and Veikkaus funds
are only allocated to the statutory beneficiaries: to the promotion of the arts,
sports, science, and youth work. Veikkaus does not distribute its proceeds by
631 679
702 713
755
700
600
500
400
300
itself, nor can it make donations to charity.
200
100
0
2004 2005 2006 2007 2008
Economic responsibility
29
GAMING GENERATES SIGNIFICANT BENEFIT TO SOCIETY
Veikkaus’ operations benefit all Finns. By taking
advantage of the different recreational sports
facilities, by going to the cinema or theatre, joining
the Scout organization, or taking part in some other
beneficiary activity, all Finns have a chance to enjoy
Veikkaus’ funds. Without an accurate and skilfully
planned distribution of the euros lost on Veikkaus
games, many pleasant things would be left undone
and many unforgettable experiences would not
come true. Thus, it is good for all of us Finns that
the proceeds accumulated by gaming are returned
to Finnish society, to benefit us all.
In 2008 Veikkaus returned a total of EUR 407.9 million
to the Ministry of Education, i.e. over EUR 1.1 million
a day. Veikkaus games represent a significant source
of income to society: the majority of the funds distributed by the Ministry of Education to sports (about
98%) and youth work (about 80%) were covered with
Veikkaus funds. Further, 44 percent of the Ministry’s
financial support to arts and 27 percent of the funds
to science came from Veikkaus funds.
ARTS, SPORTS, SCIENCE,
AND YOUTH WORK
The Finnish Ministry of Education distributes
Veikkaus funds to Finnish culture in accordance
with the Funds Distribution Act* laid down by the
Parliament of Finland. According to the act, 38.5
percent of the funds are allocated to arts, 25
percent to sports, 17.5 percent to science and 9
percent to youth work. Further, ten percent of the
funds are channelled each year to the abovementioned beneficiaries as separately specified in
the State Budget.
Act on the distribution of proceeds from lotteries, betting and
pools games.
*
The shares prescribed by the Funds Distribution Act,
which was laid down in 2001, will be introduced
gradually by the year 2010. In 2005, the original
schedule, according to which the budget funding
of libraries was to be excluded from the scope of
Veikkaus funds by 2012, was amended by cutting
two years from the transfer period of implementa-
Veikkaus funds distributed by the Ministry of Education per beneficiary sector
2004-2008
EUR million
2008
%
2007
2006
2005
2004
Arts *
189.2
46.4
184.8
190.4
185.3
187.5
Sports
104.1
25.5
100.2
97.8
89.9
84.2
Science
77.1
18.9
76.6
79.5
75.7
75.5
Youth work
Total
*
**
37.5
9.2
36.1
35.2
31.6
28.6
407.9
100
397.7 **
401.4
382.6
375.8
The funds to the arts include the financing of libraries by the Ministry of Education, amounting to EUR 24.7 million.
In 2007 the Ministry of Education distributed a further EUR 4.2 million from the Veikkaus funds saved.
Share of Veikkaus funds of all funds allocated by the Ministry of Education in 2008
Sector funds
Total EUR million
Share of Veikkaus funds %
Arts
426.4
44.4
Science
283.8
27.2
Sports
106.8
97.5
47.1
79.6
Youth work
30
tion of the act. In 2008 Veikkaus funds were used
to cover 22 percent of the whole state funding to
the libraries (EUR 24.7 million).
THOUSANDS OF BENEFICIARIES
ALL OVER THE COUNTRY
Veikkaus funds were allocated to a total of over
3 500 different communities in 2008. The beneficiaries in the field of arts included individual artists,
museums theatres, the Finnish National Opera, and
various musical events. The funds distributed to
sports were allocated to the building of recreational sports facilities, sports associations, sports
research, and recreational sports for children and
young people. Within science, the most significant
beneficiary was the Academy of Finland, which finances hundreds of scientific research projects each
year. Most of the funds earmarked for youth work
were channelled to the promotion of young people’s
involvement in various citizen organisations and to
leisure activities, e.g., young people’s associations.
GAMING PROVIDES LIVELIHOOD TO MANY
Veikkaus employs directly around 350 Finns.
However,ourrealemploymenteffectismuchbigger
than that. Our retailers employ over 15 000 game
sales clerks, and selling our games represents a significant part of their jobs. Moreover, the beneficiary
communities financed with Veikkaus funds employ
thousands of people. If we count in the multiplier
impacts of the production, services, and consumption related to Veikkaus’ and its beneficiaries’ activities, the employment effect is vast.
Thanks to the exclusive right system, Veikkaus’
social impact is great. The valuable work among, e.g.,
children and young people, sports associations, and
several arts organizations, would not be possible
to the current extent without Veikkaus funds. It is
estimated that the total employment effects of the
three Finnish gaming organizations Veikkaus, the
Slot Machine Association RAY, and Fintoto, amount
to 50 000 person years of employment.
ONE OF THE MOST EFFICIENT LOTTERIES IN THE WORLD
Veikkaus is one of the leading lotteries in the world
to plans, cooperation, as well as unambiguous
in terms of efficiency. Our operating expenses
decision-making and communications, in order that
represented a mere 8.3% of the turnover in 2008.
the objectives related to the acquisitions could be
Our small company of just a couple of hundred em-
attained. In 2009 we aim to make social responsibil-
ployees generated a profit of over EUR 440 million.
ity part of the acquisition process.
Our extraordinary efficiency is based, e.g., on
The profit expectation of Veikkaus funds for 2009
The winners did not cash their prizes within
our ability to apply the newest technologies to
is EUR 414.0 million. As the demand for games is
the one-year claim period. The claim period
gaming and on an efficient steering, planning, and
turning towards products of higher event frequency
of the prize of EUR 500 000, won at the
monitoring of the activities. The extensive game
and smaller margins and we are in the middle of
beginning of the year 2007 (round 9/07)
system reform was finalized in 2008, as the new
stagnation, we need to operate extremely cost-
with a ticket bought at a kiosk in Vantaa
central game system was adopted. This was the
efficiently in order to secure the growth of our
in southern Finland ended in March 2008.
last stage in the three-stage game system reform
profit.
Another jackpot, worth EUR 714 000,
TWO LOTTO JACKPOTS
UNCLAIMED
During the year under review, two Lotto
jackpots from 2007 were left unclaimed.
during which Veikkaus’ entire game system, includ-
which had been won by an entry put in at
ing the support systems, was modernized. At the
FINNS PLAY MODERATELY
a supermarket in Pietarsaari on the Finnish
first stage of the reform in 2006, we renewed
Gaming is not always just about money. Veikkaus
west coast (round 28/07) became invalid
our internet gaming system. In 2007 the online
wants to offer Finns comprehensive and pleasant
in mid-July 2008. The unclaimed prizes are
terminals of all the retail outlets and the company’s
gaming experiences, a bit of excitement, a chance
transferred to the prize fund in whole, to be
data communications were reformed. The game
to test their knowledge, and to dream. Finns are
paid out as special jackpots or in connection
system reform was the largest one-time investment
eager players. As many as 84 percent of Finns have
with raised prize distribution or additional
in Veikkaus’ history.
played Veikkaus games at least sometimes. 68
draws. The majority of the unclaimed prizes
percent of adult Finns play at least once a year and
are small prizes worth a couple of euros.
During the year under review, a new acquisition
around forty percent play once a week. (The Atlas
function was set up in Veikkaus, and the company’s
survey, 1-6/2008).
acquisition process was reformed thoroughly. A set
of uniform acquisition guidelines were established
There are plenty of players, but the stakes are
and the change was communicated within the
reasonable: in 2008, Finns played for an average of
company. In the implementation of the new acquisi-
EUR 278 per capita, i.e. around 5.30 euros a week.
tion process, we paid special attention to adherence
A total of around 370 million gaming transactions
Veikkaus’ return and taxes to the State 2008
Return to the Ministry of Education from the profit of 2008
Tax
Difference between profit and return
Total (36.3% of turnover)
407.9 EUR million
85.7 EUR million
41.2 EUR million
534.8 EUR million
Every Finn is a winner, whether they play our
games or not. Veikkaus’ economic success
benefits our customers, retailers, staff and
the State as our owner, all alike. We generate
versatile value to society, and our business
operations yielded a total of EUR 534.8 million
to the State in 2008.
31
700
VEIKK AUS’ OPERATING EXPENSES
2004-2008
(SHARE OF TURNOVER %)
600
10
7.2
7.2
8.0
7.8
8.3
”Veikkaus’ products are well-known: 91% of Finns recognize
Lotto; 84% recognize Ässä Instant; 81% Viking Lotto; 80%
Casino Instant ; 77% recognize Keno; 72% Football Pools; 62%
Fixed Odds Betting; and 50% Multibet.”
Atlas Survey 1-6/2008
8
6
4
2
were recorded in Veikkaus’ game system. In all, we
(round 17/2008), as a player in Järvenpää in south-
paid out a total of 66 million different prizes to play-
ern Finland landed a jackpot of EUR 5.3 million.
ers. We made a new weekly sales record, nearly EUR
The sizeable prize was the second biggest of all in
40 million, at the end of the year on round 48/2008.
Lotto’s history.
The number of big prizes of over EUR 168 188 was
0
2004 2005 2006 2007 2008
700
115 in 2008, and 40 of them amounted to over one
KENO CONTINUES TO ATTRACT –
million euros. By the end of 2008, as many as 368
INTERNET INSTANTS ENJOY
Finns had become millionaires by playing Veikkaus
PERMANENT POPULARITY
games over the years.
The games that increased their popularity the most
OPERATING PROFIT
2004-2008
600
500
395 397 403 421 441
400
300
in 2008 were Keno, Football Pools, and the Internet
LOTTO AT THE PEAK OF ITS POPULARITY
instants. The daily drawn game Keno continued as
Lotto’s price and prize distribution were reformed
a Finnish favourite. It was Veikkaus’ second most
at the beginning of February (round 6/08). The line
popular game with a turnover of EUR 316.9 million
price was raised from 70 to 80 cents. The entries
(+7.6%). Fixed Odds Betting is still the most popular
with seven matches are now allocated 13.6% of
sports game in Finland in terms of sales. Its turnover
the round-specific turnover, instead of the previ-
increased to EUR 140.0 million (+2.5%).
ous 10%. These changes raised the basic jackpot
200
100
in Lotto to around one million euros. The players
Veikkaus’ Internet instants posted record-high sales,
showed interest in the larger lotto jackpots: Lotto’s
a total of EUR 22.1 million (26.6%) in 2008. In the
turnover attained EUR 468.3 million (+11.6%).
course of the year, we launched two new eInstants:
The biggest Lotto prize of the year was hit in April
Kummeli eInstant, drawing its theme from a new
0
2004 2005 2006 2007 2008
>> CORE OBJECTIVES OF ECONOMIC RESPONSIBILITY FOR 2008
• Resultobjectivesexceeded
• Beneficiaries’proceedssecured
>> CORE OBJECTIVES OF ECONOMIC RESPONSIBILITY FOR 2009
• Moderategrowthoffinancialresultwillbecontinued;steadyproceedssecuredtobeneficiaries
• Numberofidentifiedplayersandtheirshareoftotalgamingwillbeincreased
32
Finnish movie, and Casino eInstant, based on the
traditional Casino Instant. Lucky Words eInstant
continued as Veikkaus’ most popular instant game
on the internet.
The movie instant Kummeli eInstant was also
launched as a traditional scratchcard in the autumn.
In our Christmas offerings we presented a new big
Christmas Instant that was sold in addition to the
traditional smaller Christmas Instant. In 2008 Finns
favoured the traditional Casino Instant most of all
the instant games.
Medals Game was withdrawn at the end of the year,
since its popularity had fallen. It had been launched
on round 5/2003 and was offered at Veikkaus’ points
of sales, as well as through Veikkaus web service.
Service with over forty years of experience
VEIKKAUS GAMES DRAW
CUSTOMERS TO R-KIOSKS
Porvoo
GAMING LICENCE AMENDED AND
PAYOUT PERCENTAGES RAISED
Veikkaus’ gaming licence was amended at the end
of September. The amendments had to do with
the payout percentages of parimutuel betting and
a planned multinational game. The changes in the
The R-kiosk by the bridge leading to the city cent-
KENO TODAY’S HIT
re of Porvoo could not be located more centrally.
In spite of the large customer base and the wide
Besides the regulars, plenty of passers-by pop in
range of games the customers’ purchasing habits
at the kiosk.
have not really varied over the years according to
Christina. ”People buy what they’re used to buying.
payout percentages concerned Result Odds Betting
Christina Lehtola attends to all the customers at
Of course, there are also new games. For example
and the winner odds betting games. They were intro-
the kiosk with the strong expertise that she has
Keno is being played really much and it is, in fact,
duced in order to maintain the demand for betting
developed over the years. Christina started to work
our most popular game at the moment”, says
games at an even level. The new payout percentages
at the self-same kiosk as early as 1966. Although
Christina.
were launched at the end of October. They meant an
the games, systems, and customers have changed
increase of the payout percentage of Result Odds
over time, Christina has preserved her strong sense
The regular customers remember the familiar
Betting from 70 to 80 percent and that of certain
of style in sales work and customer service.
sales clerk years back. ”One day, an elderly gentleman stepped in. He told me that when the kiosk
winner odds betting games from 70 percent to a
percentage varying between 80 and 85.
Veikkaus was granted permission to participate in
the planned multinational game. However, the game
was not launched during the year under review, since a number of the participant lotteries still lacked
VEIKKAUS GAMES BRING JOY
Long-time customer relations are fostered at the
was still an old-fashioned window kiosk
kiosk by the bridge. Christina says that many of
I had sold him an Ässä Instant winning the jackpot.
the customers pop in just because they want
He still remembered me, and I remembered him”,
to play a Veikkaus game. In fact, Veikkaus has
Christina recalls the pleasant encounter with the
provided the kiosk with visibility, customers, and
customer.
resounding ka-ching of the cash register.
national permissions.
Pyynikki outdoor recreation area, Tampere
Finnish movie, and Casino eInstant, based on the
traditional Casino Instant. Lucky Words eInstant
continued as Veikkaus’ most popular instant game
on the internet.
The movie instant Kummeli eInstant was also
launched as a traditional scratchcard in the autumn.
In our Christmas offerings we presented a new big
Christmas Instant that was sold in addition to the
traditional smaller Christmas Instant. In 2008 Finns
favoured the traditional Casino Instant most of all
the instant games.
Service with over forty years of experience
VEIKKAUS GAMES DRAW
CUSTOMERS TO R-KIOSKS
Porvoo
GAMING LICENCE AMENDED AND
PAYOUT PERCENTAGES RAISED
Veikkaus’ gaming licence was amended at the end
of September. The amendments had to do with
the payout percentages of parimutuel betting and
a planned multinational game. The changes in the
The R-kiosk by the bridge leading to the city cent-
KENO TODAY’S HIT
re of Porvoo could not be located more centrally.
In spite of the large customer base and the wide
Besides the regulars, plenty of passers-by pop in
range of games the customers’ purchasing habits
at the kiosk.
have not really varied over the years according to
Christina. ”People buy what they’re used to buying.
payout percentages concerned Result Odds Betting
Christina Lehtola attends to all the customers at
Of course, there are also new games. For example
and the winner odds betting games. They were intro-
the kiosk with the strong expertise that she has
Keno is being played really much and it is, in fact,
duced in order to maintain the demand for betting
developed over the years. Christina started to work
our most popular game at the moment”, says
games at an even level. The new payout percentages
at the self-same kiosk as early as 1966. Although
Christina.
were launched at the end of October. They meant an
the games, systems, and customers have changed
increase of the payout percentage of Result Odds
over time, Christina has preserved her strong sense
The regular customers remember the familiar
Betting from 70 to 80 percent and that of certain
of style in sales work and customer service.
sales clerk years back. ”One day, an elderly gentleman stepped in. He told me that when the kiosk
winner odds betting games from 70 percent to a
percentage varying between 80 and 85.
Veikkaus was granted permission to participate in
the planned multinational game. However, the game
was not launched during the year under review, since a number of the participant lotteries still lacked
VEIKKAUS GAMES BRING JOY
Long-time customer relations are fostered at the
was still an old-fashioned window kiosk
kiosk by the bridge. Christina says that many of
I had sold him an Ässä Instant winning the jackpot.
the customers pop in just because they want
He still remembered me, and I remembered him”,
to play a Veikkaus game. In fact, Veikkaus has
Christina recalls the pleasant encounter with the
provided the kiosk with visibility, customers, and
customer.
resounding ka-ching of the cash register.
national permissions.
Pyynikki outdoor recreation area, Tampere
700
LOTTO GAMES
LOT TO
Life could be different.
DEVELOPMENT OF
TURNOVER EUR MILLION
421
422 430
OTHER DRAW GAMES
420 468
Excitement for every day of the week.
500
Lotto – a game of big dreams, which has
retained its position as the Finnish favourite for
almost four decades.
Special events in 2008: Lotto’s price and prize distribution reform raised the basic jackpot to a million euros.
Launched in 1971
Game turnover in 2008: EUR 468.3 million (+11.6%)
Viking Lotto – people in the Nordic countries
Share of all gaming in 2008: 31.8%
and Estonia wait for a joint jackpot to be drawn
Average expenditure in 2008: EUR 89
every Wednesday. The Viking Lotto numbers
Largest prize in 2008: EUR 5.26 million (round 17/08)
have been drawn in Hamar, Norway since 1993.
Largest prize ever: EUR 5.7 million (round 45/04)
Keno came to Finland in 2002 and made it
400
300
Special events in 2008: The biggest jackpot in Keno’s
history was won, EUR 2 million.
daily game, Keno offers excitement to people
Launched in 2002
every day.
Largest prize ever: EUR 2 million (round 15/08)
Number of prizes in 2008: 40.3 million
72
74
78
85
85
Launched 1993
300
Game turnover in 2008: EUR 84.7 million (-0.4%)
TURNOVER OF LOTTO GAMES
EUR MILLION
494
496 508
200
100
Largest prize ever: EUR 6.1 million (round 33/05) Denmark,
EUR 2.0 million (round 41/2002) Finland
505 553
LOT TO
600
TURNOVER OF OTHER DRAW GAMES
0
2004 2005 2006 2007 2008
EUR MILLION
292
315 343
371 395
SATURDAY JOKER
600
WEDNESDAY JOKER
VIKING LOT TO
500
500
400
400
300
300
200
200
100
100
KENO
MEDALS GAME
VEIKK AUS BINGO
0
0
2004 2005 2006 2007 2008
300
100
0
2004 2005 2006 2007 2008
500
400
Denmark; Finland: EUR 1.9 million (round 30/08)
400
Largest prize in 2008: EUR 2 million (round 15/08)
100
Special events in 2008: A total of eighteen
jackpots to Finland.
295 317
200
2004 2005 2006 2007 2008
220 246 269
200
0
Nordic Wednesday night favourite.
500
quickly to our second most popular game. As a
VIKING LOT TO
DEVELOPMENT
OF
600
KENO
2004 2005 2006 2007 2008
SATURDAY JOKER
MEDALS GAME
WEDNESDAY JOKER
VEIKK AUS BINGO
700
LOTTO GAMES
LOT TO
Life could be different.
DEVELOPMENT OF
421
422 430
OTHER DRAW GAMES
420 468
Excitement for every day of the week.
500
Lotto – a game of big dreams, which has
retained its position as the Finnish favourite for
almost four decades.
Special events in 2008: Lotto’s price and prize distribution reform raised the basic jackpot to a million euros.
Launched in 1971
Viking Lotto – people in the Nordic countries
and Estonia wait for a joint jackpot to be drawn
every Wednesday. The Viking Lotto numbers
have been drawn in Hamar, Norway since 1993.
Largest prize ever: EUR 5.7 million (round 45/04)
Keno came to Finland in 2002 and made it
400
300
Special events in 2008: The biggest jackpot in Keno’s
history was won, EUR 2 million.
daily game, Keno offers excitement to people
Launched in 2002
every day.
Largest prize ever: EUR 2 million (round 15/08)
72
74
78
85
85
Launched 1993
300
TURNOVER OF LOTTO GAMES
EUR MILLION
494
496 508
200
100
Largest prize ever: EUR 6.1 million (round 33/05) Denmark,
EUR 2.0 million (round 41/2002) Finland
505 553
LOT TO
600
TURNOVER OF OTHER DRAW GAMES
0
2004 2005 2006 2007 2008
EUR MILLION
292
315 343
371 395
SATURDAY JOKER
600
WEDNESDAY JOKER
VIKING LOT TO
500
500
400
400
300
300
200
200
100
100
KENO
MEDALS GAME
VEIKK AUS BINGO
0
0
2004 2005 2006 2007 2008
300
100
0
2004 2005 2006 2007 2008
500
400
Denmark; Finland: EUR 1.9 million (round 30/08)
400
Largest prize in 2008: EUR 2 million (round 15/08)
100
Special events in 2008: A total of eighteen
jackpots to Finland.
295 317
200
2004 2005 2006 2007 2008
220 246 269
200
0
Nordic Wednesday night favourite.
500
quickly to our second most popular game. As a
VIKING LOT TO
DEVELOPMENT
OF
600
KENO
2004 2005 2006 2007 2008
SATURDAY JOKER
MEDALS GAME
WEDNESDAY JOKER
VEIKK AUS BINGO
700
SPORTS GAMES
FOOTBALL POOLS
DEVELOPMENT
OF
600
This is where it all began.
Veikkaus’ business originated from Football
Pools, which has been played ever since 1940.
The supply of sports games was extended in
1993, when betting games were introduced. Our
betting objects include primarily sports.
500
Special events in 2008: Football Pools continued
to flourish.
54
50
58
We have been selling instant tickets made of
paper in Finland for over 25 years. The first
400
instant game was Ässä Instant, launched in 1981
300
and still our best-selling instant game in terms of
200
the biggest in terms of turnover, has been on the
number of tickets sold. Casino Instant, which is
Largest prize in 2008: EUR 222 326 (2 prizes on round 10/08)
CHRISTMAS INSTANT
NATURE INSTANT
market for over twenty years.
100
Largest prize ever: EUR 539 220 (round 51/2003)
Number of prizes in 2008: 933 000
CASINO INSTANT
66
Launched in 1940
OFF-TRACK HORSE BETTING
54
INSTANT GAMES
EINSTANTS
7000
2004 2005 2006 2007 2008
MINI ÄSSÄ INSTANT
We launched the eInstants in 2005 and ever since,
their popularity has been on constant increase.
600
FIXED ODDS BET TING
Betting booster.
Special events in 2008: Payout percentage was raised
considerably.
Launched in 1993
500
In 2008, the turnover of eInstants increased by
97
134 139
137 140
27%. We have also made the eInstant portfolio
more versatile and interactive over the years.
400
ÄSSÄ INSTANT
300
200
TURNOVER OF SPORTS GAMES
EUR MILLION
Largest prize in 2008: EUR 143 490 (round 44/08)
329
366 369
100
TURNOVER OF INSTANT GAMES
0
700
EUR MILLION
2004 2005 2006 2007 2008
365 376
147
LIVE BET TING
600
138 142
150 151
CASINO
600
600
CHRISTMAS INSTANTS
MULTIBET
500
FIXED ODDS
MULTIBET
BET TING
Finnish betting hit.
RESULT ODDS
400
BET TING
FOOTBALL POOLS
300
200
Special events in 2008: Largest prize over
EUR 220 000.
WINNER ODDS
Launched in 1998
BET TING
V-GAMES
500
83
87
88
83
75
NATURE INSTANT
500
MINI ÄSSÄ INSTANT
LUCKY WORDS INSTANT
THEME INSTANTS
400
400
ÄSSÄ INSTANT
CHRISTMAS EINSTANT
300
NATURE EINSTANT
300
HOBBY EINSTANT
HOROSCOPE EINSTANT
200
200
SPORTS EINSTANT
100
LUCKY WORDS EINSTANT
100
THEME EINSTANT
100
ÄSSÄ EINSTANT
0
2004 2005 2006 2007 2008
LUCK Y WORDS INSTANT
CASINO EINSTANT
0
2004* 2005 2006 2007 2008
* Multibet included in the figures
of Result Odds Betting until 2003.
0
2004 2005 2006 2007 2008
700
SPORTS GAMES
FOOTBALL POOLS
DEVELOPMENT
OF
600
This is where it all began.
Veikkaus’ business originated from Football
Pools, which has been played ever since 1940.
The supply of sports games was extended in
1993, when betting games were introduced. Our
betting objects include primarily sports.
500
Special events in 2008: Football Pools continued
to flourish.
54
50
58
We have been selling instant tickets made of
paper in Finland for over 25 years. The first
400
instant game was Ässä Instant, launched in 1981
300
and still our best-selling instant game in terms of
200
the biggest in terms of turnover, has been on the
number of tickets sold. Casino Instant, which is
Largest prize in 2008: EUR 222 326 (2 prizes on round 10/08)
CHRISTMAS INSTANT
NATURE INSTANT
market for over twenty years.
100
CASINO INSTANT
66
Launched in 1940
OFF-TRACK HORSE BETTING
54
INSTANT GAMES
EINSTANTS
7000
2004 2005 2006 2007 2008
MINI ÄSSÄ INSTANT
We launched the eInstants in 2005 and ever since,
their popularity has been on constant increase.
600
FIXED ODDS BET TING
Betting booster.
Special events in 2008: Payout percentage was raised
considerably.
Launched in 1993
500
In 2008, the turnover of eInstants increased by
97
134 139
137 140
27%. We have also made the eInstant portfolio
more versatile and interactive over the years.
400
ÄSSÄ INSTANT
300
200
TURNOVER OF SPORTS GAMES
EUR MILLION
329
366 369
100
TURNOVER OF INSTANT GAMES
0
700
EUR MILLION
2004 2005 2006 2007 2008
365 376
147
LIVE BET TING
600
138 142
150 151
CASINO
600
600
CHRISTMAS INSTANTS
MULTIBET
500
FIXED ODDS
MULTIBET
BET TING
Finnish betting hit.
RESULT ODDS
400
BET TING
FOOTBALL POOLS
300
200
Special events in 2008: Largest prize over
EUR 220 000.
WINNER ODDS
Launched in 1998
BET TING
V-GAMES
500
83
87
88
83
75
NATURE INSTANT
500
MINI ÄSSÄ INSTANT
LUCKY WORDS INSTANT
THEME INSTANTS
400
400
ÄSSÄ INSTANT
CHRISTMAS EINSTANT
300
NATURE EINSTANT
300
HOBBY EINSTANT
HOROSCOPE EINSTANT
200
200
SPORTS EINSTANT
100
LUCKY WORDS EINSTANT
100
THEME EINSTANT
100
ÄSSÄ EINSTANT
0
2004 2005 2006 2007 2008
LUCK Y WORDS INSTANT
CASINO EINSTANT
0
2004* 2005 2006 2007 2008
* Multibet included in the figures
of Result Odds Betting until 2003.
0
2004 2005 2006 2007 2008
AND BENEFIT TO ALL FINNS
ABC Piihovi Service Station, Salo
AND BENEFIT TO ALL FINNS
ABC Piihovi Service Station, Salo
SOCIAL RESPONSIBILITY AS
THE CORNERSTONE OF OPERATIONS
Veikkaus’ social responsibility is based on a deep responsibility for our players,
beneficiaries, and staff. Veikkaus generates versatile value to Finnish society by
organizing games reliably and responsibly.
Social responsibility materializes in Veikkaus’ operations as compliance with the
principle of responsible gaming and in the fact that all our proceeds are used for
the benefit of Finns. Veikkaus’ players are the largest individual group to finance
the Finnish arts, sports, science, and youth work.
Veikkaus holds the exclusive right to operate pools, betting and lottery games
in Finland. This system has been laid down by Finnish decision-makers, and the
majority of Finns are in favour of it.
For its staff, Veikkaus offers a safe workplace with good opportunities of career
development. According to the latest personnel survey, the majority of Veikkaus’
employees are satisfied with their workplace and know the objectives of their
work.
Social reponsibility
37
”Identified playing promotes
responsible gaming.”
PLAYING WITH SMALL
IDENTIFIED GAMING
STAKES AS THE OBJECTIVE
PROMOTES RESPONSIBILITY
A lottery’s sphere of activities is unique in many
Veikkaus Card, introduced in the autumn of 2006,
ways. Games offer players a chance to dream and
is part of Veikkaus’ responsible gaming policy, al-
make their dreams come true if they happen to win.
lowing us to gather information we can use in the
Game providers shall not only offer gaming experi-
development of our products and services and in
ences but they shall also assume responsibility for
risk assessment. By using the card, our customers
the provision of safe and reliable games.
also become more conscious about their gaming:
the card comes with a player ID to be used on our
Veikkaus has the right to run pools and betting
internet gaming service where the players can
games and lotteries. We offer an extensive game
follow their gaming history. We do not reward our
supply, which covers nearly 30 products. By main-
players for playing much, nor do we offer bonuses.
taining a comprehensive supply, we aim to attract a
By the end of the year under review, a total of some
wide customer base playing with reasonable stakes.
510 000 customers had ordered Veikkaus Cards.
Our registered players, i.e. players having ordered
It is also essential that we can offer Finns an inter-
Veikkaus Cards or registered into Veikkaus’ internet
esting and secure gaming alternative in the middle
gaming service totalled some 836 000 at the end
of the constantly growing international game supply.
of 2008.
We want to make sure that our customers keep
choosing the Finnish option. This is important for the
We aim to prevent possible gaming problems and
entire society: even if you did not win, you benefit
abuse in many way. You cannot play Veikkaus
each and every Finn by playing Veikkaus games.
games on credit. Nor can you play our games in the
night time. Our game system is open from Monday
GAMING RESTRICTIONS
to Saturday from 7 am to 10 pm, and on Sundays
PART OF SOCIAL RESPONSIBILITY
from 8 am to 10 pm. The restrictions on gaming
A responsible game provider must consider the
hours also cover our internet games.
disadvantages of gaming, such as gaming by young
people and the possibility of problem gambling.
Players on Veikkaus’ internet gaming service can
Therefore, the secure provision of games neces-
choose to stop themselves from gaming for the
sarily also involves limitations and tools for the
rest of the day or for three months by imposing a
self-management of gaming.
self-ban. They can also impose stake restrictions
on their gaming for days, weeks, or months. During
Veikkaus decided to impose age limits on all of its
the year under review, the players used the self-ban
games in 2005. The age limit for playing at our
options for a total of around 5 000 times.
points of sales is fifteen and the limit for playing
through the electronic channels is eighteen. The
changes were made in anticipation of the future
development and to prevent gaming by children and
young people and its possible harmful effects.
38
HIGH-STANDARD
The responsibility evaluation
CONSUMER PROTECTION
tool consists of nine parts:
Consumer protection is an essential part of all
1) elements of gaming
well-administered gaming activities. Through proper
2) risk of financial loss
consumer protection, we can guarantee our play-
3) structure of prizes and stakes
ers’ legal rights in possible problematic situations.
4) role of skills, knowledge and rules
Veikkaus’ players can seek assistance in unclear
5) attractiveness of the game and its environment
situations concerning prize payout by filing a
6) additional tempting features
request for recommended decision with the Ministry
7) social features
of the Interior.
8) accessibility
EFFECTIVE GAMING
RESTRICTIONS
• Agelimits–fifteenyearsatthepointsof
sales and eighteen in the electronic channels.
• Youcannotplayinthenighttime–not
even on the net.
• Gamesarenotsoldoncredit
(Lotteries Act § 10)
9) marketing
In 2008, we recorded 370 million gaming transac-
Restrictions concerning all the players
tions at Veikkaus. There were 71 requests for
All the parts include specifying questions with
on the internet imposed by Veikkaus
recommended decision (35 in 2007). Most of the
which we can evaluate the possible addiction-pro-
• Dailylimitofplayinginternetinstants:
requests had to do with betting.
voking features related to the game ideas. On the
basis of the results, we can suggest either concrete
RESPONSIBILITY
changes or that special attention should be paid
EVALUATOR TOOL UPDATED
to the game idea which is being evaluated. At this
During the year under review, the Responsibility
stage, we can also recommend gaming restrictions
Evaluator Tool, created jointly by Veikkaus and the
to be imposed on the game. In 2008 a total of
Finnish Slot Machine Association RAY was updated
seven evaluations were made.
on the basis of the experiences obtained in the year
a hundred euros a day.
• Dailyandbet-specificlimitofLiveBetting
- a hundred euros a day; twenty euros a bet
• Maximumgamingaccountbalance
5 000 euros.
Optional tools for self-management
of gaming on the net
before. The Tool is used for the ethical evaluation of
The Responsibility Evaluator is well suited for
• Self-banongamingforthreemonths
new game ideas or reforms of existing games from
the evaluation of gaming products, but not for
• Self-banongamingfortherestoftheday
the point of view of possible gaming addiction.
the assessment of service concepts or distribu-
• Player-specificgamingrestrictionsforone,
tion channel solutions as such. To evaluate these
seven, or thirty days
changes, Veikkaus has developed a set of questions
- players can decide the euro amounts by
of ethical evaluation based on the different parts of
the Responsibility Evaluator. The set of questions
was tested and made use of six times in the year
themselves
• Gamingaccountbalanceemailedto
customers once a month
under review.
We are continuously developing our games to meet
our players’ wishes and expectations. The Responsibility Evaluator and the set of questions for ethical
evaluation enable us to develop gaming products
that fulfil the requirements of ethical planning and
responsibility. By using them, we can prevent social
problems that may arise from Veikkaus games.
39
GAMING ORGANIZATIONS FINANCE RESEARCH INTO PROBLEM GAMBLING
The Finnish national gaming organizations work in
In 2008 the Peluuri website piloted a new model
cooperation to prevent problem gambling. Veikkaus,
of treatment called Peli poikki (Time to Fold) for
Fintoto, and the Finnish Slot Machine Association
the treatment of problem gambling. It is a self-help
RAY finance research carried out by the Finnish
guide offered on the internet for the treatment of
MinistryofSocialAffairsandHealthtoinvestigate
gaming problems. The Time to Fold model consists
OLLI ALHO
the possible detriments of gaming.
of eight self-study sections each of which covers
Professor
a period of one week and a brief weekly consulting
MARIA KAISA AULA
THE FINNISH PROBLEM
session with a therapist. In 2008 fifty-two people
GAMBLING HELPLINE OFFERS
took the Time to Fold programme. So far, the experi-
ADVICE ON GAMBLING PROBLEMS
ences of the treatment programme have been very
SARI ESSAYAH
The national gaming organizations finance the
encouraging.
M.Sc.(Econ.)
FinnishProblemGamblingHelplinePeluuricollec-
Ombudsman for Children
JUKKA GUSTAFSSON
tively. Peluuri is operated by the Finnish Blue Ribbon
VEIKKAUS’ ETHICAL COUNCIL
and the A-Clinic Foundation, which also offer
– EXTERNAL EXPERT PERSPECTIVE
treatment to problem gamblers. Peluuri is a toll-free
Veikkaus’ Ethical Council is an advisory expert
helpline meant for problem gamblers and their
organ which was nominated by Veikkaus’ Board of
families and friends. In the course of its four years
Directors in 2003. The Council’s task is to provide
RINGA JUNNILA
of operations Peluuri has established its position as
Veikkaus’ Board of Directors and operative manage-
Entrepreneur (Vice chairman)
a central nation-wide service helping people with
ment with an external perspective to issues related
gambling problems.
to the ethics of gaming, especially games and their
KALEVI KIVISTÖ
marketing, as well as to topics such as addictive
In 2008 Peluuri answered a total of 4 500 calls
gambling. The Council also makes concrete sug-
concerning problem gambling. Of the callers, 19%
gestions and issues ethical statements on various
were players, whereas the rest were members of
practical issues and debate concerning gaming.
their families and friends. Just 7% of the callers said
Member of Parliament
TEEMU JAPISSON
Secretary General, Young Finland Association
Licentiate of Political Science (Chairman)
VESA-PEKKA KOLJONEN
Lehdistöneuvos (Finnish honorary title)
TIMO LAITINEN
Chairman, Finnish Sports Federation
they were having problems primarily with Veikkaus
During the year under review the Ethical Council
games.
was chaired by Mr. Kalevi Kivistö. The Council’s Vice
Chairman was Ms. Ringa Junnila. The Ethical Council
SANNA-MARI MYLLYNEN
ManagerofHumanRiskand
Work Welfare Services, Tapiola Group
There is comprehensive information on gaming
convened four times in 2008. The topics dealt with
problems and electronic guidance available on
during the meetings covered questions related to,
Peluuri’s website www.peluuri.fi, where people
e.g., the ethics of Veikkaus’ advertising activities.
Professor, University of Oulu
can ask about problem gambling anonymously and
The Council also presented a proposal it had pre-
HANNU SAHA
toll-free. In 2008 Peluuri’s website was visited over
pared on the ethical argumentation related to gam-
Doctor of Philosophy
43 000 times and the electronic guidance service
ing to Veikkaus’ Board of Directors. At the beginning
answered a total of 185 problem gambling-related
of 2009, Veikkaus’ Board of Directors will appoint a
questions. Peluuri also makes available a discussion
new Council for the next two-year period.
forum “Valtti”, where problem gamblers can seek
peer support. The discussion on the forum has been
lively.
40
MEMBERS OF ETHICAL
COUNCIL 2008
TUOMO PELTONEN
RELIABLE COMMUNICATIONS AND MARKETING
Gaming is always a random activity where you
RESPONSIBLE MARKETING
cannot know for sure what the outcome will be –
Veikkaus pays special attention to its marketing
regardless of whether we are talking about lotteries
communications, which are regulated by strict ethi-
or sports games. This is an issue we want to draw
cal guidelines. Responsibility is the guiding principle:
special attention to in all our communications and
we will not encourage people to play excessively.
ETHICAL GUIDELINES
OF VEIKKAUS’ MARKETING
COMMUNICATIONS IN
A NUTSHELL
our games, without creating illusions about gaming
Veikkaus spent EUR 10.6 million (9.9 million in
• Socialresponsibilityconstitutesacore
as an easy way to make money.
2007) on product advertising last year. This repre-
part of Veikkaus’ operations. It entails
sents 0.7% (0.7% in 2007) of our total turnover.
our responsibility as a game provider and
marketing. We distribute open information about
We want to offer our customers open information
business operations that are based on high
about Veikkaus as a company, our games, and the
The guiding principle of Veikkaus’ marketing com-
changes related to them. We communicate actively
munications is social responsibility: we respect the
to both the media and our customers. Veikkaus’
consumers’ individual rights, minimising the idealisa-
marketing communications shall be social
website is very popular, with over 140 000 users on
tion and encouragement of large-scale spending
responsibility. This means that we avoid
the liveliest days.
on gaming.
advertisements that idealise gaming and
In a survey on corporate communications carried out
We will not abuse our players’ trust in gaming and
by the Finnish market research house Taloustut-
game providers, nor exploit their inexperience or
kimus in spring 2008 Veikkaus’ communications
lack of knowledge. Our marketing communications
were given the overall grade of 8.08 (on the scale
shall not be directed to children or consumer groups
from 4 to 10). Veikkaus’ grade in 2007 was 7.97.
that are especially vulnerable in view of their social
Veikkaus’ grade was the highest in the group of
position, or other special features.
ethical standards.
• TheguidingprincipleofVeikkaus’
encourage people to play and that we
large companies which covered eighteen compa-
respect the consumers’ individual rights.
• Veikkaus’advertisementsshallnotoffer
incorrect information or give a misleading
picture about the real chances of winning.
• Veikkaus’marketingcommunications
shall not be targeted at consumer groups
that are especially vulnerable in view of
nies. We received our best grades on the reliability
The Finnish market research house Taloustutkimus
of our communications. The areas in which we did
and the magazine Markkinointi & Mainonta carried
especially well were the frequency and speed of the
out a brand survey in 2008 to investigate the popu-
communications.
larity of certain brands among Finns. Among the
game brands, Lotto ranked first when assessed in
their age, social position, or other special
features. Children are one such group.
• Veikkausguaranteesthatthecustomers
can trust the security of its web environment.
terms of general esteem and Veikkaus ranked first
• AllVeikkaus’marketingpartnershipagree-
when assessed in terms of customer satisfaction.
ments shall include regulations on fraud
and doping. The agreements will enable
Veikkaus to withdraw instantly from any
cooperation in which the other party has
been engaged in fraudulent activities.
The total Finnish-language guidelines can be found at
Veikkaus’ website www.veikkaus.fi
41
VEIKKAUS’ STAFF HAPPY WITH THEIR JOBS
In 2008 Veikkaus updated its customer strategy,
which had been effective since 2004. In connection
with the update, the strategy was renamed as the
Customer Relations Strategy. At the same time, our
organization was reformed and the governance
system was delineated more specifically. The daily
management of the business operations is taken
care of by the Strategic Executive Team together
with the Operative Executive Team. These changes
became effective from 1 August 2008. With the
reform, the job titles of forty employees were
changed.
At the end of 2008 Veikkaus had 323 salaried and
31 part-time employees. We conducted a staff
survey in the autumn of the year under review to
find out how happy Veikkaus’ staff was and how
the workplace climate in Veikkaus was experienced.
The survey, which was performed in August and
September 2008, was responded to by 84% of
the employees (79% in 2007). It showed that the
employees were somewhat happier with their work
than in the previous year. They were most satisfied
with their own tasks and the company’s objectives,
strategy, and values. According to the survey, the
staff were also mainly satisfied with the company
and its operations; the staff rated their satisfaction
with the average grade of 3.9 (3.8 in 2007) on the
scale of 1 to 5.
The highest grades were given in the questions
concerning the employees’ own tasks, as well as in
those concerning the company objectives, strategy,
and values. The highest grades were given to the
statement “I am familiar with the objectives of my
unit”. According to the staff survey, the organizational change implemented in 2008 was received
well among the employees.
On the basis of the 2007 survey, five themes had
been identified as needing special attention: openness, equality, workload, division of labour, and job
rotation. The themes of openness, equality, and job
rotation showed better results in the 2008 survey
than in the year before. It was decided that tackling
42
EQUAL OPPORTUNITIES
AT VEIKKAUS
”The staff’s work enjoyment
improved and the sick leave
days decreased during the
year under review.”
• Inrecruitments(externalandinternal),the
most qualified applicant shall be recruited.
Whilst recruiting from amongst equally
qualified and competent applicants, positive
discrimination shall be complied with, and the
applicant representing the minority gender
these issues should be divided between two years,
2008 and 2009; no new topics that require special
attention came up in the survey of 2008.
EMPLOYEE TRAINING SUPPORTS THE
IMPROVING OF PROFESSIONAL SKILLS
During the year under review, Veikkaus’ staff training and development focused on the reinforcement
and enhancement of the specialist employees’ professional skills. Three different training programmes
for individual employees or small employee groups
were realized in 2008. The participants’ skills in
operating in a matrix organization were enhanced,
and they received training in how to improve their
personal working methods and ways of acting in
their daily work and the management of their jobs.
The Game Academy, training programme for
Veikkaus’ personnel, offered 47 different training
events in 2008. The training programme, which
aims at supporting the employees in their work,
centred on the management of the staff’s professional and IT skills. The staff’s proficiency in the
core matters of the industry was reinforced by, e.g.,
inviting specialist speakers to talk about customer
loyalty, responsibility, and the company’s processes
of product development. At the end of the year, the
entire personnel took part in a huge training project
associated with the transition to the Office 2007
system.
In order to improve Veikkaus’ superiors’ work, special
“Superior Forums” were arranged on a regular basis.
The Superior Forums are workshops where issues
arising from the superiors’ work are handled; and
the superiors are offered the chance to exchange
views and experiences, as well as discuss best
practices.
shall be recruited.
• Jobswiththesamerequirementstandards
shall entitle to the same salary, irrespective
of the employee’s gender.
• Veikkaushasexplicitandcomprehensive
requirement standards for the evaluation
of the recruitment of male and female
employees to different positions and for the
follow-up of their salary development.
• Equalopportunitiesshallbefollowedcarefully, and they shall be communicated openly.
In connection with the update of the customer
strategy and the organizational change, Veikkaus’
superiors and management were offered extensive
training on the successful implementation of the
change processes. The work of the units that went
through bigger changes was supported right after
the summer holiday season by offering them special
training events themed Strong Veikkaus. The objective of the training days was to make sure that the
teams had a good startup to the change process
and to set common missions and objectives.
OBJECTIVE AND CAREER
DEVELOPMENT TALKS GUIDE THE WORK
Veikkaus’ entire staff takes part in regular objective
and career development talks*. In 2008 the talks
covered a total of 361 employees. The objective
and career development talk process of the year
Objective and career development talks cover all the permanent
and fixed-term employees who are entitled to the performancebased bonuses. The employees covered by the performancebased bonuses were at work on half of the workdays of the
incentive period.
*
KEY PERSONNEL INDICATORS
PERSONNEL
Change
2008
2007
2006
2005
2004

354
370
373
372
377
Women

196
207
211
214
221
Men

158
163
162
158
156
Employees under 30
8%
11%
10%
11%
26%
Employees between 30 and 49


68%
64%
62%
51%
40%
Employees over 50

25%
25%
26%
31%
34%
Average age of personnel (years)

43
42.3
42.2
42.5
42.4
Average duration of contracts (years)

13
12.1
12.7
13.1
13.5
Permanent

342
355
355
355
359
Fixed-term

12
15
18
17
18
Newly recruited permanent employees

8
12
19
25
16
Newly recruited fixed-term employees

2
15
14
13
Retired

8
10
10
19
Gave their notice

10
11
22
16
5
Terminated fixed-term contracts

8
9
7
8
14
Total turnover of personnel

5.1%
7.7%
9.0%
10.9%
8.0%
Number of employees 31 Dec 2008
Turnover of personnel
7
Personnel expenses, salaries and wages
Average salary *

3,507 €
3,324 €
3,157 €
3,092 €
2,951 €
Personnel expenses

24.9 M€
22.4 M€
21.6 M€
21.9 M€
19.5 M€
Share of salaries

19.7 M€
17.8 M€
18.0 M€
16.5 M€
15.6 M€
Share of indirect personnel expenses

5.2 M€
4.5 M€
3.6 M€
5.4 M€
3.9 M€
Recreational and employee club expenses

70,870 €
73,000 €
70,309 €
67,149 €
81,555 €
512
425
658
454
413
Training
Training days/entire personnel **

Objective and Career Development talks ***
361
OCCUPATIONAL HEALTH CARE
Physical examinations and follow-up examinations

188
158
174
100
187
Expenses of occupational health care

390,542 €
373,143 €
340,032 €
398,508 €
388,059 €
Expenses/person

1,103 €
1,009 €
911 €
1,071 €
1,029 €
Sick leaves total

3,809 days
4,456 days
5,159 days
5,423 days
5,158 days
Absence from work percentage

3.8%
4.4%
5.7%
6.2%
5.8%
Days of absence on average


4.7 days
6.4 days
6.3 days
5.6 days
6.2 days
6
5
15
9
6
Work-related injuries
*
**
***
Includes the salaries for the entire year including the performance-based incentives. Excludes the salaries of the Executive Team members. In connection with the organizational change on
1 August 2008, a Strategic Executive Team and an Operative Executive Team were established. At the end of the financial year, the two Executive Teams had a total of fourteen members,
whereas they had been a total of eight in 2007.
Includes only Gaming Academy training events.
Objective and career development talks serve as the basis for the objective cards, which cover 100% of the permanent and fixed-term employees
(361 = employees covered by the performance-based incentives in 2008).
Objective and career development talks did not cover temporary employees and summer trainees in 2008.
43
under review was launched with team-specific talks
in December 2007. The team talks acted as a link
between the planning of the operations, the objectives and requirements of the following year and
the personal objective and career development talks
that took place between January and February.
The superiors have personal objective and career
development talks with the members of their
teams in January or February. During the talks, the
objectives and performance during the past period
are reviewed; issues related to the prerequisites of
working and the development of professional skills
are handled; and the personal objectives for the
following year are defined. The superiors prepare
personal objective cards for each employee of their
teams. In 2008 the objective cards of all Veikkaus’
employees included two objectives of the company
level common to everyone. The majority of the employees also had a process indicator in their cards,
together with two or three personal objectives. Further, the objective cards were supplemented with
a new feature in 2008, as one to three personal
objectives supporting career development were
recorded in the cards of each employee.
In the period between June and August, the superiors had follow-up talks with the members of their
teams, making sure the objectives and development
plans were making progress.
OCCUPATIONAL HEALTHCARE
FOCUSED ON WORK ENJOYMENT
Besides the statutory occupational health care
services, Veikkaus’ employees are entitled to health
care of the GP standard, and to specialist consultations in connection with, e.g., spectacle prescription
renewals. The employees are compensated for
health care expenses after an initial four-month trial
period of employment.
Veikkaus’ occupational health care services focused
on mental well-being and preventive health care in
2008. The sick leaves were most frequently caused
by musculoskeletal disorders.
44
VeikkaushasanactiveHealthandSafetyCommittee elected for one year at a time, which takes care
of the workplace safety issues at Veikkaus.
The committee aims to ensure the health and working capacity of each employee. It also analyses the
health hazards caused by the working environment
and methods, and offers guidance on problems
related to workplace health and safety.
VeikkaushasaHealthandSafetyDelegate,electedfor
twoyearsatatime.TheHealthandSafetyCommittee
has at least four statutory meetings a year. The meetings are attended by the occupational health nurse
and, if necessary, the company physician.
LIVELY AND TRADITIONAL
EMPLOYEE CLUB ACTIVITIES
Veikkaus boasts a long tradition of promoting
activities that improve the staff’s working capacity, e.g., active employee clubs. In 2008 Veikkaus’
clubs spent a total of EUR 47 417 on their various
activities. The amount was used to support, e.g., the
sports, arts, travel and fishing clubs.
Besides the events and the club activities, Veikkaus’
staff received a recreational bonus, which totalled
EUR 23 453 (EUR 24 109 in 2007). The recreational bonus is paid as a one-time payment amounting
to EUR 70 per person at the maximum. Veikkaus’
leisure facilities in Porkkala, Kirkkonummi on the
south coast and Saariselkä in Lapland, which are
open to the staff, also contribute to work enjoyment.
COOPERATION BETWEEN
EMPLOYEES AND EMPLOYER
Of Veikkaus’ staff, 52 percent are members of
Veikkauksen Virkailijat ry (Veikkaus officials’ association), a trade association under the Trade Union
SUORA.
Veikkaus is a member of Employers’ Association
of the Special Branches, which belongs under the
umbrella organization Confederation of Finnish
Industries.OurHeadofPersonnelisamember
of the Board of the Employers’ Association of
the Special Branches. Veikkaus’ actual collective
bargaining agreements are negotiated centrally at
• Veikkaus’statusasapioneerreinforcedbyimprovingthestaff’sskills.
- Training events supporting the staff’s skills in gaming issues were organized.
• Staffmorewidelyengagedinthedevelopmentandinnovationsoftheoperations.
- Theme Teams supporting the development of the operations were attended by fifty-eight
employees. The topics dealt with in the teams were openness, equal opportunities, and workload.
• Investinginstaff’sworkenjoyment.
- Sick leaves fell by eleven percent.
• Customerbasewillbedevelopedinaresponsiblemanner,seepp.22-23.
• TheResponsibilityEvaluatorToolswillbeusedsystematicallyaspartofthedevelopmentprocess.
• Theworkonopenness,equalopportunities,andworkloadbytheStaff’sThemeTeamswillbe
continued on the basis of what has arisen during the previous years.
• TheyearwillbeaVeikkausStaffthemeyear.Theobjectiveisthateveryemployeewillacceptmore
responsibility for the successful accomplishment of the everyday work in the workplace community.
“Since October 2008 we have
only had Fair Trade Coffee at
Veikkaus’ head office.”
the union level. Further, we have the opportunity of
making local agreements. Veikkaus’ current collective bargaining agreement will be effective until 28
February 2010.
INTERNAL COMMUNICATIONS SUPPORT
THE ORGANIZATIONAL CHANGE
In 2008 Veikkaus’ internal communications focused
especially on the supporting of the organizational
change and cultural transition. The themes that
had arisen from the personnel survey of 2007
(workload, openness, equal opportunities) were also
communicated actively.
The most important means of internal communication were the intranet, the internal info events for
the staff, and the staff magazine 1x2, which comes
out four times a year.
We had six internal management info events in
2008. The Webcast system enables Veikkaus’ staff
to follow the info events organized at the main
office live on their own computer screens or as
recordings through the intranet.
In addition to the info events, we arranged special
forums to meet the needs of the internal communications. There were two types of forums: the
News Forums organized by the communications
function and the Market Forums organized by the
Gaming Business Operations at the end of the year.
The News Forums gave Veikkaus’ staff a chance to
learn about topical matters and company business
that were being handled in the mass media. As for
the Market Forum, it dealt with the recent news
concerning Veikkaus’ business operations. There
were eight News Forums and eight Market Forums
in 2008.
Service around the clock
COFFEE WITH LOTTO
AT A SERVICE STATION
Customers come and go at frequent intervals at
the ABC Piihovi service station by the highway
between Helsinki and Turku in the middle of the
fields of the region of Finland Proper. The service
station offers service to the occasional passers-by
and the local customers, all alike at all hours. The
locals like to pop in at the familiar station to have
coffee and put in a line of Lotto.
”Our customers favour the Finnish favourites
Lotto, Viking Lotto and Keno. Syndicate games also
sell quite nicely. People do not often play sports
games at our station”, says Johanna Lintula, who
is in charge of Veikkaus games at the ABC Piihovi
service station, where she has been working since
the station was founded in 2003.
Over the past few years Johanna has been in
charge of Veikkaus games. “Jackpots are absolutely
the best drawing cards; they attract both regulars
and passers-by to play. Sometimes when there’s a
bus full of people stopping at our station, some of
Salo
the passengers may rush in to put in a line of Lotto
at the last moment before the bus leaves.”
VEIKKAUS SALES CLERKS
FACE MANY CHALLENGES
Johanna thinks her job as a sales clerk specialised
in Veikkaus games is very interesting. ”You never
know everything about the games, but there’s
always a chance you get to learn something new.
In this work, you need to know a lot about the
games, but it’s through practice that you really
learn the most.”
”The biggest challenges lie in the way you need
to keep up with the reforms and to change the
marketing materials in time. My job as a Veikkaus
game sales clerk has absolutely fulfilled my expectations; it brings welcome change to the work!”
”By the way, I play the same games as our customers once in a while: Lotto, Viking Lotto, and Keno”,
says Johanna, smiling.
Veikkaus’ Web Team, Vantaa
ENVIRONMENTAL RESPONSIBILITY
PART OF VEIKKAUS’ EVERYDAY WORK
The environmental impacts of gaming have to do mainly with the electricity
consumption by the condensers and servers of the electronic game system. As
gaming increases, the need for electricity grows. We pay special attention to
energy consumption in the construction of our facilities, equipment acquisitions,
” Veikkaus undertakes to
operate more energy
efficiently in the next
eight years, aiming to save
590 MWh of energy by 2016.”
and office work. Veikkaus undertakes to operate more energy efficiently in the
next eight years, aiming to save 590 MWh of energy during the period.
The environmental perspective is taken into account even in our smallest
everyday activities: Veikkaus’ employees are encouraged to save electricity, sort
waste, and print on both sides of the paper. Thanks to an efficient sorting of
waste, the degree of utilization of the waste generated at Veikkaus’ head office
is currently up to ninety-five percent, i.e. just five percent of the waste at the
head office ends up in a landfill.
Gaming generates paper and cardboard waste which is recyclable. As a service
VEIKKAUS PART OF THE
GREEN OFFICE NETWORK
provider, Veikkaus does not really generate hazardous waste that would burden
the environment.
Veikkaus’ head office was awarded the
Green Office label by WWF Finland in 2007.
It shows that Veikkaus’ head office complies
with an environmental programme and that
the workplace community undertakes to
save energy, recycle, and communicate the
environmental responsibility. As a holder
of the label Veikkaus hosted a Green Office networking event in spring 2008 and
has offered advice on the environmental
concerns of office work to the specialists of
other companies.
Environmental responsibility
47
District heat, water, and electricity consumed at Veikkaus’ head office
In addition to the head office in Vantaa (3.3
Change
2008
2007
2006
2005
2004
ha) and the district centre in Tampere, we
District heat (MWh)

2,541
2,559
2,689
2,785
2,791
have small sales offices around the country.
Water (m )


4,230
4,300
5,500
4,000
4,100
They are located in Vaasa on the west coast,
4,540
4,350
4,090
3,750
3,500
Turku in the south, Kuopio in the east, and
3
Electricity (MWh)
Oulu in the north. We also have meeting
facilities in the city centre of Helsinki and in
Waste generated at Veikkaus’ head office
Vierumäki Sports Institute, as well as recrea-
TONS
tional facilities for the staff in Kirkkonummi
2008
2007
2006
2005
2004


21.5
26.0
23.0
20.1
-
0.6
0.6
0.6
0.9
0.6
31.2
31.5
31.6
26.2
31.2
Glass


3.2
1.3
1.5
1.7
2.0
of energy consumption from the premises
Metal

3.2
2.2
4.4
2.6
1.1
owned by Veikkaus, i.e. from Vantaa, Kirkko-
Timber

9.4
5.4
7.4
9.6
5.7
nummi and Saariselkä. The specified con-
Plastic

2.0
0.1
0.2
0.0
0.1
sumption details of the rented facilities are

11.2
11.6
10.8
7.5
11.6
not accessible. The offices sort waste as best
-
0.5
-
c.11
c. 26
they can but, being just one renter among
many others in larger facilities, they cannot
Energy waste
Recyclable carton
Recyclable paper
Cardboard
Building and renovation waste
*
1.1
0.9
1.1
1.7
41.8
Confidential paper

7.8
6.7
5.9
7.8
6.9
Instant tickets

62.8
65.7
56.2
45.4
-
Office paper


3.8
4.3
5.8
4.5
-
Biological waste
16.0
15.0
14.4
3.3
2.4
The largest part of Veikkaus’ energy con-
Waste electrical and electronic equipment, WEEE

4.9
1.5
3.3
2.3
1.6
sumption and waste is generated at the head
7.8
-
-
-
-
office, where a total of 306 people, i.e. 86%

0.230
0.257
0.330
-
-
of the staff were working in the year under
0.5
-
-
-
-
review.
**
***
PET bottles *****
***
****
*****
48
We only have access to the accurate figures

Hazardouswaste****
**
in Lapland (0.3 ha).
Mixed waste
Sand
*
on the south coast (13.3 ha) and in Saariselkä
Change
The disposal of building and renovation waste is at the contractor’s responsibility, and no figures are available for the years
2006 and 2008. In 2007, Veikkaus generated 0.5 tons of other construction waste in addition to the waste generated by
the contractor.
Office paper has been recorded as separate waste since 2005.
A new type of waste adopted by the service provider in 2008.
The amount of hazardous waste includes solvents, paints, and oil, as well as batteries and light tubes.
A new type of waste adopted by the service provider in 2008. Used to be recorded as energy waste.
sort, e.g., energy waste, unless it is organized
by the real estate’s management.
PAYING CONSTANT ATTENTION
TO ENERGY EFFICIENCY
The consumption of electricity arising from electronic game provision makes up a significant part of
Veikkaus’ environmental impacts. The game system
servers, together with the condensers their use
requires, consume energy. Thus, Veikkaus’ consumption of energy will probably increase in the future.
The saving of energy is taken into account whilst
making IT acquisitions and renewing the facilities and
equipment. It is also supported by informing the staff
regularly about how they can help to save energy.
In November 2008 Veikkaus signed the Energy Efficiency Agreement for Industries, thus undertaking
to decrease the consumption of energy resulting
from other activities than production at the head
office by nine percent from the level of 2005 by
the year 2016. That means a total of 590 MWh
of energy saved in the consumption of heat and
electricity. This objective requires a constant
improvement of energy efficiency; we will start the
project by making an energy analysis of the head
office in 2009.
In 2008 Veikkaus’ head office consumed a total of
4 540 MWh of electricity, which is 4.4 percent more
than in 2007. The increase was due to IT acquisitions, the preparations for the implementation of
the new game system and, finally, its implementation. In all, the CO2 emissions caused by the electricity consumption of the head office amounted to
787 tons.*
Veikkaus’ head office uses environment-friendly
district heat, 2 541 MWh in 2008. The CO2 emissions from the heat consumption totalled 718
tons.** The head office consumed 4 230 m3 of
water. The warm winter and rainy summer helped
us to maintain the consumption of district heat and
water at a moderate level. The head office’s heating
system was calibrated and the thermostats were
renewed in autumn 2008. The weatherstrippings
“The employees are
encouraged to switch off
their computer screens and
the lights of their workstation
at the end of the day.”
ONE SHEET OF PAPER
LESS ON EVERY WORKDAY
The consumption of paper is one of the
great environmental challenges of office
work. Veikkaus’ Ecological Team’s main
of the windows were also renewed as parts of the
head office were renovated. We believe that these
measures will contribute to the saving of energy in
the years to come.
objective for 2009 is to cut down the use
of printing and copy paper by 100 000
sheets. This means about one daily sheet
less per employee on each workday. We aim
We pay attention to the energy consumption of the
office environment whilst acquiring new equipment.
We also inform our staff how important it is to, e.g.,
switch off the computer screens and lights. The
head office uses energy saving mini light tubes and
light bulbs.
to attain this goal by informing the staff
and offering them guidance on, e.g., how to
print and copy on both sides of the paper.
The progress of each function towards the
goal is monitored closely. The objective
will also be supported by the renewal of
the company’s printers between 2009 and
In the course of 2008 the computers and computer
screens that had been used in office work were
replaced with models that consume less energy.
At the same time, the number of computers was
cut down by, e.g., offering the employees laptops
instead of two desktop computers at the office and
at home. In 2009 we will replace the current printers with more modern and environment-friendly
models. During the year under review, the suppliers
of the office computers, screens, and printers
involved in the bidding process were required to
follow an environmental programme.
EFFICIENT WASTE SORTING
Waste sorting is an established part of Veikkaus’
staff’s activities. All the employees have separate
bins for energy waste, office paper, and recyclable
paper at their workstations. The bins for confidential papers, mixed waste, and biological waste are located in the shared facilities. Thanks to an efficient
sorting of waste, the degree of utilization of the
waste generated at Veikkaus’ head office is currently up to ninety-five percent, i.e. just five percent
of the waste at the head office ends up in a landfill.
2011. We only use copy paper that has
been granted the environmental label.
*
**
CO2 coefficient indicated by the supplier 173.3 g/kWh.
CO2 coefficient indicated by the supplier 282.6 g/kWh.
49
“One percent of the sales of Nature Instant are distributed to
the WWF and the Finnish Association for Nature Conservation.
In 2008, the funds thus accumulated and distributed to the
two organizations amounted to nearly 60 000 euros.”
In spite of the efficient sorting practices, the total
amount of waste we generate increased in 2008.
The organizational change, implemented in the
autumn, brought with it new solutions for the
organization of the facilities and workstations. It led
to an increase of 16.4% in the amount of confidential paper compared with the previous year. The
226-percent increase in the amount of electrical and
electronic equipment over the previous year resulted
from the reform of the IT equipment carried out
during the year under review. The employees were
offered a chance to buy computers and furniture that
were no longer in use; that way, the recycling of the
IT appliances was made even more efficient.
SERVICE CALLS DECREASED AS
A RESULT OF GAME SYSTEM REFORM
The game terminals at Veikkaus’ points of sales
were renewed in 2007. The Mean Distance
between Failures (MDBF) for the new terminals is
708 days, whereas it was around 300 days for the
old terminals. The new terminals need servicing
considerably less frequently than before, so the
number of service calls to the points of sales has
decreased significantly. Veikkaus is responsible for
the servicing and replacing of the game terminals
together with the subcontractor.
environmental responsibility in practice and
to promote the staff’s understanding of
environmental matters. It was established in
2004 and has fifteen members representing
In 2008 the Ecological Team continued
to inform the staff about environmental
matters and arranged two events that were
related to recycling and energy saving. As
a new perspective, the team took up the
environmental impacts of food. In October
2008 Veikkaus took part in the Energy Saving Week administered by Motiva Oy for the
third time. During the Energy Saving Week,
Veikkaus’ Ecological Team reminded the
screens and cutting down on their consumption of water.
2008
2007
2006
2005
2004
Vantaa
752
910
1,553
1,536
1,584
Tampere
303
284
462
488
607
Kuopio
270
314
398
411
489
Oulu
165
206
409
369
444
Outsourced terminal renewal service
386
436
758
773
780
Other than service calls *
3,852
3,209
1,782
-
-
Total
5,728
5,359
5,362
3,577
3,904
The service function started to make special point-of-sales calls in addition to the maintenance service in 2006.
set up by the staff to implement Veikkaus’
staff, e.g., about switching off the lights and
In addition to making service calls, our maintenance service supports the implementation of
BY SERVICE DISTRICT
50
Veikkaus’ Ecological Team is a working group
the different units and offices.
The servicing of the gaming equipment requires
greases, paints, detergents, and solvents that are
classified as hazardous waste. The chemicals are
sorted carefully and delivered to a hazardous waste
disposal plant. Our four service offices generate less
than 20 kg of waste in all, of which the waste generated at the service unit of head office in Vantaa
represents 70—85%. The abandoned terminals that
cannot be repaired are delivered to Kuusakoski Oy
for secure disassembly and utilization of valuable
components. In 2008, we had no terminals that
could not be repaired.
Service calls at points of sales
*
ECOLOGICAL TEAM
INFORMS AND ACTS
FOR THE ENVIRONMENT
“Just five percent of the
waste generated at the head
office ends up in a landfill
unutilised.”
Veikkaus’ brand strategy in the sales network. The
maintenance service staff made a total of 3 852
calls at the points of sales to check that Veikkaus’
campaigns were on display at the right time, and
to update the sales equipment to be in harmony
with Veikkaus’ uniform design. The kilometres
accumulated on the service and other calls made
by Veikkaus’ own service staff numbered a total of
306 000. Besides the servicing kilometres, a nonspecified number of kilometres accumulated on, e.g.,
the work-related travel by the district managers and
the training personnel.
RECYCLABLE POINT-OF-SALES MATERIAL
Gaming generates waste mainly in the form of
playslips, instant tickets, and receipt rolls of online
and instant lottery terminals, and materials used
for promotional campaigns. The materials Veikkaus
delivers to its points of sales, such as playslips,
receipts, posters, and instruction leaflets, together
with their cardboard packaging, are all recyclable. We
offer our retail outlets regular guidance on how to
sort the materials correctly.
The suppliers of Veikkaus’ playslip, receipt roll,
point-of-sales poster papers, weekly sports game
fixture lists, and the paper used in the RR (Tick the
Box) info leaflets for the game sales personnel have
the right to use an environmental label – either one
that is awarded in the Nordic countries or one that
is granted at the level of the EU. All of the plastic
packaging materials are combustible, so they can
be sorted as plastic waste or energy waste. Instant
tickets have to be destroyed by shredding for
security reasons. Unsold and withdrawn tickets are
disposed of as energy waste.
140 000 users a day
VEIKKAUS’ WEBSITE
MORE AND MORE POPULAR
Vantaa
Veikkaus’ website www.veikkaus.fi is increasing its
VISITOR STATISTICS REVEAL A LOT
popularity all the time. We have some 140 000 in-
Joni says that the sports games, just as the new
dividual visitors to the website every day. “The real
game concepts, require that the team mem-
peak periods are right after Lotto’s jackpots are
bers’ expertise is being developed and followed
drawn, when people are busy checking the winning
constantly. “We also follow the visitor statistics of
numbers in the service”, says Joni Ruotsalainen
the different sections of the website; by looking
from Veikkaus’ Web Team.
at them, we get a feel of what the customers are
interested in.”
According to Joni Veikkaus’ website is above all an
internet store with average weekly sales of EUR
The Web Team receives customer feedback by
5.7 million and promising growth forecasts. The
email and tries to fulfil the customers’ wishes, if
website’s design follows the same concept as the
possible. “We also ask the customers to send us
rest of Veikkaus’ points of sales.
their own stories about how they have won even
smaller prizes. Then we publish the stories at the
The Web Team has currently eight members. “We
website”, says Joni.
provide content, whereas the game results come
directly from the game system. The website is
Joni thinks marketing over the Net is interesting.
being updated with new content all the time. We
“You need to change the marketing material on the
also use freelance writers as content providers”,
Net all the time. And the results of marketing can
says Joni.
often be seen very quickly. Traditional marketing
has a much longer time-span.”
Veikkaus Cards are made of PVC plastic, which is
non-recyclable. The manufacturing process of the
card adheres to strict environmental regulations. In
the year under review, a total of 230 000 Veikkaus
Cards were ordered. Veikkaus Card replaces the
Winnings to Bank Account slips made of paper.
The number of the Winnings to Bank Account slips
decreased from the earlier 3.5 million to one million
in 2008.
SAVING BY COMBINED
DELIVERY TRANSPORTS
Transportations to retailer outlets and sales offices
are managed from a central depot at our head office
in Vantaa. In 2008 the Logistics Unit transported
280 000 deliveries containing, e.g., receipt rolls,
playslips, instant tickets, and products used for
marketing and sales promotion.
We aim at well-planned routes and combining
several deliveries in larger one-time transports
in all our transportation. During the year under
review, we combined the deliveries more often than
before, which not only reduced the costs, but also
eased the burden on the environment, as there
were fewer delivery kilometres. The transportation
companies Veikkaus uses all comply with special
environmental programmes.
Waste sorting instructions for Veikkaus’ point-of-sales material
Posters, papers, magazines, paper bags, coupons, game receipts containing a win of less than five euros
Sorted as recyclable paper
Promo change mats, notebook ads, poster covers, crates, receipt rolls
Sorted as recyclable carton
Plastic packaging material, plastic ribbons, bubble wraps
Sorted as energy waste or plastic waste
Packaging bags padded with plastic
Sorted as energy waste
>> CORE OBJECTIVES OF ENVIRONMENTAL RESPONSIBILITY FOR 2008
• Practicesaimingatthesavingofenergydevelopedattheheadoffice
-Heatingsystemcalibratedandstructuressealed
- Energy Efficiency Agreement for Industries signed
• Oldcomputersreplacedwithnewones
- The computers and computer screens used in office work were replaced with new ones which were more energy efficient. The total number of
computers was cut down by one hundred.
• Staff’sprintingbehaviourandpaperconsumptionanalysed.
- Staff’s printing behaviour was analysed.
>> CORE OBJECTIVES OF ENVIRONMENTAL RESPONSIBILITY FOR 2009
• Thecompanyguidelinesforacquisitions,whichwillberenewedinthespring,willbesupplementedwithinstructionsonhowtheenvironmentalperspectives should be taken into account whilst making acquisitions.
• AnenergyanalysiswillbecarriedoutincompliancewiththeEnergyEfficiencyAgreement.
• Asthemainelectricitysystemisrenewed,thecoolingsystemisreformedandmademoreenergyefficient(2009-2010).
• Thedevelopmentoftheofficesystemsandacquisitionsshallbemadebearinginmindenergyefficiency.Inthecourseoftheyear2009,wewillbe
developing, e.g., solutions for negotiating at a distance and automatic switch-off options for workstations.
• Theprojectforthedevelopmentoftheprintingenvironment(2008-2011)willfocusonreplacingtheoldprinterswithmoreenvironmentfriendlyand
modern ones. Black-and-white printing and double-sided printing will be made the default.
• Theuseofprintingandcopypaperwillbecutdownby100000sheets.
52
GOVERNANCE
Veikkaus’ mission is to generate versatile value to
calendar years at a time. None of the members
The Personnel Committee
Finnish society by operating games reliably and
of the Board belong to the company’s operative
- determines the general principles of compensa-
responsibly. Veikkaus is a state-owned limited
management.
company which belongs under the management of
tions to the management and the staff;
- prepares the questions related to the CEO’s
the Finnish Ministry of the Education. The State’s
The tasks and responsibilities of Veikkaus’ Board are
salary and compensations and approves the
responsibilities for the company’s operations are
determined according to the Finnish Companies Act.
conditions related to the compensations to the
determined solely by its share capital.
The Board considers all issues that have far-reaching significance for the company. These include the
employees working directly under the CEO;
- assesses the CEO’s and the company’s supreme
Veikkaus’ governance is based on the Lotteries
company’s strategic guidelines and core invest-
Act (1047/2001) and the gaming licence granted
ments, the annual operation plan, and the budget,
- assesses the company’s staff policy;
to it by virtue of the Lotteries Act, as well as the
as well as the monitoring of all of them. The Board
- and assesses the functioning and structure of
Finnish Companies Act and the company’s Articles
also appoints the CEO and the Vice Presidents
of Association. The Council of State has granted
operating directly under the CEO, and determines
Veikkaus a licence to operate lotteries, betting, and
their salaries and other benefits.
pools games. The current gaming licence entered
management’s performance;
the organization.
The committees report to the Board on their regular
work. In 2008 the members of the Audit Commit-
into force on 1 January 2007 and will be effective
The Board of Directors convened eight times in
tee were: Ari Lahti (Chairman), Jouko Ahtola, Leena
until the end of 2011.
2008, and the participation percentage in the
Paananen and Riitta Kaivosoja. The members of the
meetings amounted to an average of 92. The Board
Personnel Committee were Juha Niemelä (Chairman),
GENERAL MEETING
drafts an annual operational agenda describing,
LeenaHarkimo,MikaelIngberg,andMaija-RiittaOl-
Veikkaus’ superior administrative organ is the Gen-
e.g., the core tasks of the Board of Directors and
lila. The Personnel Committee convened three times,
eral Meeting, which appoints the Board of Directors
the Chairman, the Board of Directors’ Committees,
with an average percentage of presence of 92 and
and the Supervisory Board in accordance with the
a schedule of meetings, and the themes handled
the Audit Committee five times in the course of the
Articles of the Association. During the period under
in them. At the end of the year under review, the
year under review, with an average percentage of
review, two General Meetings convened, which were
Board conducted a self-evaluation of its activities.
presence of 95.
the representative of the Finnish State; officials
The Board has two internal committees, the Audit
In accordance with the stock market practices, the
from the Ministry of Education, the chairmen of
Committee and the Personnel Committee.
members of the Board file annual insider reports,
attended by the Minister of Culture and Sports as
the company’s Board of Directors and Supervisory
for the evaluation of their independency. Of the
Board, members of the Board of Directors, as well as
The Audit Committee
members of the Board of Directors, Riitta Kaivosoja
company representatives.
- assesses the financial reporting system;
holds an office in the Ministry of Education. The rest
- works to develop the financial statement and
of the members of Veikkaus’ Board are independent
BOARD OF DIRECTORS
According to the Articles of Association of the
company, Veikkaus’ Board of Directors has five
members at the minimum and seven members at
annual report;
- monitors the adequacy and functioning of the
of the company and the shareholder on the basis of
the reports filed.
company’s control and risk management systems;
- supervises the compliance with the laws, regula-
the maximum in addition to the chairman. In 2008
tions, and guidelines; and monitors the risks
the Board of Directors had eight members including
that have emerged, as well as the internal and
the Chairman. The General Meeting appoints the
external audits.
Chairman and Vice Chairman of the Board for two
Annual report 2008
53
SUPERVISORY BOARD
Board of Directors’ monthly and meeting compensations in 2008 (euros)
Veikkaus’ Supervisory Board has 14 members, one
Monthly
Meeting
Compensations
compensations
compensations
total
1,400/1,600 *
240/350 *
Vice Chairman
1,200
240/350 *
Other Members
1,000
240/350 *
115,450
16,420
of whom is a representative of the personnel. The
General Meeting elects the Supervisory Board for a
Chairman
two-year term at a time. The Supervisory Board appoints two of its members to be the Chairman and
Vice Chairman for one year at a time. In 2008 the
Supervisory Board convened five times.
The Supervisory Board is responsible for supervising
the management of the company by the Board of
2008
131,870
2007
115,450
The Board of Directors’ compensations were altered from 1 August 2008. The Chairman’s monthly compensation was raised from
EUR 1,400 to EUR 1,600, and the meeting compensations to all the Members of the Board were raised from EUR 240 to EUR 350.
*
Directors and the CEO, and for issuing a statement
on the financial statement and Auditors’ report to
the General Meeting.
Supervisory Board’s monthly and meeting compensations in 2008 (euros)
COMPANY MANAGEMENT
Monthly
Meeting
Compensations
compensations
compensations
total
1,000
200
The CEO is in charge of the management and
Chairman
supervision of the company’s business operations
Vice Chairman
600
200
in accordance with the Finnish Companies Act and
Other Members
500
200
91,400
8,400
the strategy confirmed by the company’s Board of
Directors. The two Executive Teams assist the CEO
2008
in this task.
2007
Veikkaus’ organization was reformed and the
company’s governance system was specified in the
tive Team were divided between two new teams:
CEO
the Strategic Executive team and the Operative
Other Members of the Executive Team *
Executive Team. The previous Executive Team was
Total
1 August 2008. The tasks of the Strategic Executive Team include the preparation of the strategy,
the plan of operations, and the budget for the Board
of Directors, as well as the decisions and monitoring
of significant projects and investments. Veikkaus’
1,767,658
1,137,031
2,120,613
1,463,887
Compensations to the auditors included in the purchase of services 2008 (euros)
Audit compensations
Other services
Annual report 2008
2007
326,856
In relation to the organizational change on 1 August 2008, two Executive Teams were established: the Strategic Executive
Team and the Operative Executive Team. The Executive Teams had fourteen members at the end of the financial year 2008 and
eight members at the end of the financial year 2007. These amounts include the performance-based bonus in accordance with
the new compensation scheme.
Total
54
2008
352,955
*
operative function has been managed by the Operative Executive Team since 1 August 2008.
88,667
Salaries, wages and other benefits granted to company management in 2008 (euros)
summer of 2008. The operations of the Execu-
renamed as the Strategic Executive Team on
99,800
2008
2007
41,107.90
36,730.10
186,805.31
176,759.62
227,913.21
213,489.72
During the year under review, the Strategic Execu-
and standards of the various activities and units
In accordance with the company’s Articles of
tive Team had seven members in addition to the
are determined as the operations are planned. The
Association, the General Meeting appoints two
CEO. The former Exective Team convened a total
achievement of the objectives is assessed at the
regular auditors. One of them must be an auditor
of twenty times in the period between January and
end of the financial year, and the amount of the
or audit firm authorised by the Central Chamber of
July, and the Strategic Executive Team convened six
incentive is determined according to the annual
Commerce(KHT).Atthemoment,thistaskiscarried
times in the period between August and December.
salary of each employee. The maximum incentives
out by the audit firm KPMG Oy Ab. The auditors are
The Operative Executive Team convened a total of
vary between 7% and 37.5% of the salary according
chosen through a bidding process, and appointed to
eighteen times.
to the personnel group, and in order that the incen-
perform their task until further notice, in accord-
tive can be paid in whole, all the objectives must be
ance with the company’s Articles of Association.
attained.
The auditors report to the Board of Directors’ Audit
The Board of Directors appoints Veikkaus’ CEO and
Committee.
the Vice Presidents working directly under the CEO.
The members of the two Executive Committees
The Board of Directors determines the compensa-
file an annual stakeholder report in accordance
tions to the members of the Strategic Executive
Veikkaus’ internal audit evaluates the sufficiency,
with the stock market practices. On the basis of the
Team and the grounds for awarding performance in-
reliability and effectiveness of the process of risk
reports, all the members of the Executive Team are
centives to the entire staff. The special perquisites
management, supervision and management, in
independent of the company’s stakeholders.
and performance-based bonuses are determined by
accordance with the confirmed operating principles.
theHumanResourcesSteeringGroup.
Further, the objective of the internal audit is to
BENEFITS, INCENTIVES,
develop control systems related to management,
AND COMPENSATION
SUPERVISION AND RISK MANAGEMENT
ensuring legality and preventing abuse. The internal
The employees who joined Veikkaus before 1 Janu-
By virtue of the Lotteries Act (1047/2001),
audit is conducted by a person nominated by the
ary 1994 may retire at 63 years of age. The Board
Veikkaus’ lottery, pools and betting operations
company, together with an external partner in coop-
Members and company management do not enjoy
are supervised by the Ministry of the Interior. The
eration. In 2008, the external partner was Ernst &
special benefits, except for the CEO’s and Execu-
Ministry confirms the rules of the games. Player
Young Oy. The internal auditors work directly under
tive Vice President’s additional pension schemes
complaints related to prize payout are processed by
the CEO, reporting to the Audit Committee, and
(63 years/66%). Nor are the company executives
the Ministry, which issues recommended decisions
covering the entire organization.
entitled to options.
on them. In 2008 a total of 71 recommended decisions were issued, as compared with 38 in 2007.
Veikkaus’ Strategic Executive Team is in charge of
The period of notice of the CEO is six months and
The gaming activities are supervised by the official
the company’s risk management. It ensures that the
the compensation in a situation where the CEO’s
supervisors appointed by the Ministry of the Interior.
risk management process is operated smoothly and
employment contract is terminated by notice equals
The official supervisors also confirm the results of
makes decisions on the management of individual
a salary of twelve months.
the games and the prizes on each round.
risks. In this task, the Executive Team is assisted
Veikkaus has an incentive scheme that covers the
Since Veikkaus’ games are monitored by external
which develops the risk management process and
entire personnel. The scheme includes the discre-
supervisors, even the staff can play them. As
coordinates risk evaluation and the operation of the
tionary performance-based bonuses to the salaries,
regards the staff’s participation in Veikkaus games,
management measures.
special perquisites, and performance incentives.
specific instructions are followed, which include
The performance incentive is an annual one-time
general guidelines and a ban on certain employees’
Veikkaus complies with the comprehensive risk
payment based on the achievement of the strategic
playing of fixed-odd betting games and instant
management system Enterprise Risk Management
goals and success of the company. The objectives
lotteries.
(ERM). The ERM framework describes the risk man-
by a specially appointed Risk Management Group,
Annual report 2008
55
agement process in use in the company, together
GENERATION AND SUPERVISION OF
The European Union (EU) requires that all public
with the related responsibilities and procedures. It
FINANCIAL ADDITIONAL VALUE
companies within the EU should prepare their
is integrated in the planning processes of Veikkaus’
By operating games in a socially responsible way
financial statements in accordance with the IAS/
activities in a way which ensures the regular and
Veikkaus generates value to Finnish society.
IFRS standards for financial statements. This
comprehensive assessment of the risks related to
Veikkaus’ profits are returned to the customers – to
practice has been effective since the beginning of
the business objectives and the company’s prepar-
Finnish society – to be used for the benefit of arts,
2005. Although the requirement does not concern
edness for tackling them.
sports, science and youth work. At the same time,
Veikkaus, the company has decided to voluntar-
Veikkaus responds to the demand of games in Fin-
ily introduce the IFRS standard. Veikkaus started
land with ethically planned and regulated offerings.
the preparations for the introduction of the IFRS
In 2008, the most significant risks and factors of
insecurity reported to the Board of Directors had
standard in 2005, and the financial statement in
to do with the development of Veikkaus operating
Veikkaus aims at increasing its profit moderately
this report is the company’s third one to comply with
environment and the finalising and implementation
in spite of the competition which is becoming
the new standard.
of the new game system. It is estimated that the
tougher and involving more and more operators. The
greatest risks of 2009 will be associated with the
medium-term estimate of the company’s owner is
Further, Veikkaus complies, where applicable to its
overall unfavourable financial development and the
that Veikkaus’ return of proceeds recorded in the
activities, with the Recommendation for corporate
insecurity factors related to the entering into force
State Budget will increase by an average of 1.5%
governance of listed companies of 2008. The
and contents of the Lotteries Act.
a year.
deviations from the recommendation have to do
The external auditors of the standards are Det
The strategy approved by Veikkaus’ Board of Direc-
owner and it is not an exchange-traded enterprise.
Norske Veritas (DNV), which audits Veikkaus’ com-
tors serves as the basis for the preparation of an
In addition to the recommendation for corporate
pliance with the World Lottery Association Security
annual operations plan and budget, the realisation
governance of 2008, Veikkaus adheres to the
Standards WLA-SCS:2006, and Inspecta Oy, which
of which the Board supervises with the help of a set
ownership policy guidelines issued by the Ministry
audits the compliance with the Information security
of tools belonging to the management system. The
of Education on 10 December 2008.
standard ISO 27001:2005. In 2008 DNV conducted
return objectives are followed by monthly result
one follow-up audit related to the WLA certificate.
reports and prognoses. Comparable information on
The audit showed that Veikkaus’ security system
the development of the gaming industry, especially
fulfils the requirements of the WLA standard. In-
from the other Nordic countries, is also analysed
specta Certification carried out one ISO 27001audit
regularly by the Board of Directors and the two
during the year under review. In that connection,
Executive Teams.
with Veikkaus’ ownership structure: it has just one
Veikkaus’ operations were also compared with the
ISO 9001:2000 standard. Veikkaus was granted a
new ISO certificate at the beginning of 2009.
56
Annual report 2008
organiZation
CEO
Risto Nieminen
Executive Vice President
jussi isotalo
BUSINESS OPERATIONS
CORPORATE DEVELOPMENT
Senior Vice President, Business Operations
Senior Vice President, Corporate Development
Olli Sarekoski
Jari Vähänen
Customer relations and offerings
Brand and marketing communications
Product management
Sales network
Digital media
Product development
New business and international affairs
Business intelligence
PRODUCTION
Vice President, Production
Esa Valtonen
Service and logistics
Information management
Production services
Production tehcnology
Corporate security
FINANCIAL MANAGEMENT
Vice President, Finances
Marilene Mäkipää
COMMUNICATIONS AND
CORPORATE RESPONSIBILITY
Vice President, Communications
Ilkka Juva
LEGAL AFFAIRS AND HR
Vice President, Legal Affairs and Human Resources
Pekka Ilmivalta
Annual report 2008
57
BOARD OF DIRECTORS 2008-2009
Chairman
Vice Chairman
JUHA NIEMEL Ä
M A I J A - R I I T TA O L L I L A
J O U KO A H T O L A
LEENA HARKIMO
b. 1946
b. 1956
b. 1952
b. 1963
M.Sc. (Econ.), Vuorineuvos (Finnish
honorary title)
D.Soc.Sc
M.Sc. (Econ.)
Diploma in Business Studies
Ministerial Adviser, Ministry of Social
AffairsandHealth
Member of Parliament
Dr.Sc. (Econ.), h.c.; Dr.Sc. (Tech.), h.c.
Fixed-term Professor,
HelsinkiSchoolofEconomics
Member of the Board since
10 October 2000; Chairman of the
Personnel Committee
1 January 2006, Member of the
Personnel Committee
1 January 2006, Member of the Audit
Committee
MIK AEL INGBERG
R I I T TA K A I V O S O J A
ARI LAHTI
L E E N A PA A N A N E N
b. 1951
b. 1957
b. 1963
b. 1950
Ph.D (Econ.)
Master of Laws (trained on the bench)
Lic. Soc. Science
M.Sc. (Econ.)
1 January 2008, Member of the
Personnel Committee
Director General, Ministry of Education
Managing Director,
ICECAPITAL Securities Ltd.
Partner, Ovia Oy
Current memberships of other boards
of directors: M-real Oyj, Powerflute Oyj,
Green Resources A.S.
Current memberships of other boards
ofdirectors:OralHammaslääkäritOyj,
Andelslaget Varuboden
58
Annual report 2008
1 January 2008, Member of
the Audit Committee
1 January 2002, Chairman of
the Audit Committee
Current memberships of other boards of
directors: Beltton Group plc. (chairman),
Companies in the ICECAPITAL Group
Member of the Board since 1 January 2008,
Member of the Personnel Committee
directors: National Sports Council,
JokeritHCOy,TheSwedish-FinnishCultural
CentreHanasaari
1 January 2000, Member of
the Audit Committee
directors: A-Lehdet Oy, Kalevala Koru Oy,
Lapponia Jewellery Oy, Entre Marketing
Oy,HidasOy
SUPERVISORY BOARD 2008-2009
SUPERVISORS
Member of Parliament JARI KOSKINEN, Chairman
Chief Police Inspector REIJO HYYTIÄINEN
Member of Parliament MATTI SAARINEN, Vice Chairman
Administrative Officer HANNELE JUUSELA
Member of Parliament MERIKUKKA FORSIUS
Chief Police Inspector SEPPO JUVONEN
Member of Parliament JUKKA GUSTAFSSON
Senior Officer KIRSI KOIVUNIEMI
Member of Parliament TUOMO HÄNNINEN
Inspector General of the Police and Training Manager SEPPO KOLEHMAINEN
Member of Parliament HELI JÄRVINEN
Police Chief AAPO NUOTIO (until the end of 2008)
Member of Parliament JARI LEPPÄ
Chief Superintendent LEENA PIIPPONEN (until the end of 2008)
Member of Parliament HEIKKI A. OLLILA
Inspector General of the Police REIJO PÖYHÖNEN
Member of Parliament SIRPA PAATERO
Senior Officer KARI SANTALAHTI
Member of Parliament AILA PALONIEMI
HeadofPressandCommunicationServicesKAIJA UUSISILTA
Member of Parliament JUHA REHULA
Chief Superintendent MARKUS VÄLIMÄKI (until the end of 2008)
Member of Parliament KARI UOTILA
Deputy Police Chief RISTO ÄIJÄLÄ (until the end of 2008)
Member of Parliament ULLA-MAJ WIDEROOS
AUDITORS
PERSONNEL REPRESENTATIVES
Authorised Public Accountant LASSE HOLOPAINEN, KPMG Oy Ab
Operational Supervisor TEIJO LOIKKANEN
Certified Accountant OSMO VALTONEN
Business Development RIKU SOININEN, deputy personnel representative
Annual report 2008
59
STRATEGIC EXECUTIVE TEAM
CEO
Executive Vice President
VicePresident,LegalAffairsandHumanResources
RISTO NIEMINEN
J U S S I I S O TA L O
P E K K A I L M I VA LTA
b. 1951
b. 1947
b. 1970
Master of Arts
Diploma in Business and Administration
Master of Laws (trained on the bench)
Veikkaus career 1989-2000; and since 2001
Joined Veikkaus in 1988
Appointed CEO in 2001
Professional experience as a CEO,
Communications Director, and Museum Director
Professional experience in the shipping industry
and executive positions in various national
organisations
Professional experience as an advocate and positions
in sports organisations
Member of the Executive Team since 1991
Vice President, Finances
Senior Vice President, Business Operations
Vice President, Production
M A R I L E N E M Ä K I PÄ Ä
O L L I S A R E KO S K I
E S A VA LT O N E N
b. 1950
b. 1965
b. 1952
M.Sc. (Econ.), Authorised Public Accountant
M.Sc. (Econ.)
B.Sc.
Professional experience as a Financial Director in
various small and medium-sized enterprises and as an
Authorised Public Accountant
Professional experience includes various executive
positions
Professional experience includes positions within
information management and executive positions in
software production
60
Annual report 2008
OPERATIVE EXECUTIVE TEAM
Senior Vice President, Business Operations OLLI SAREKOSKI, Chairman
Senior Vice President, Business Development JARI VÄHÄNEN, Vice Chairman
Director, Customer Relations and Offerings, ARI AARNIHUHTA
VicePresident,LegalAffairsandHumanResourcesPEKKA ILMIVALTA
Vice President, Communications ILKKA JUVA
Director, Brand and Marketing Communications, AMI MIETTINEN
Vice President, Finances MARILENE MÄKIPÄÄ
Vice President, Communications
I L K K A J U VA
b. 1952
Professional experience as the Editor-in-chief of
Länsi-Savo newspaper, and as an Editor of, e.g.,
Uusi Suomi and Turun Sanomat newspapers
Director, Public Relations RIINA NEVAMÄKI (from 1 January 2009)
Director, Strategy and Development KARRI PAAVILAINEN
Director, Product Management ANTTI TIIHONEN
Director, Digital Channels KIMMO TOLONEN
Vice President, Production ESA VALTONEN
Director, Sales Network, NORA VÄHÄVIRTA
Senior Vice President, Business Development
J A R I VÄ H Ä N E N
b. 1965
M.Soc.Sc
Professional experience as Betting Director and
Acting CEO of the Finnish Trotting and Breeding
AssociationHippos
Annual report 2008
61
COMPARISON WITH THE GRI RECOMMENDATIONS
Global Reporting Initiative (GRI) is an international
organization which develops and publishes guidelines for sustainability reporting. GRI’s objective is
to promote the reporting of reliable and comparable
information for the needs of different stakeholders
and for social debate. The guidelines aim at openness, credibility, clarity and comparability. The use of
the GRI recommendations is completely voluntary,
but hundreds of companies in the world are already
using the guidelines to report the economic, envi-
INDICATOR GRI CONTENTS
1.
1.1
1.2
2.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
3.
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
4.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
62
Strategy and analysis
Statement from the CEO
Description of key impacts, risks, and opportunities
Organizational profile
Name of organization
Primary brands, products and/or services
Operational structure of the organization
Location of organization’s headquarters
Geographical location of operations
Nature of ownership and legal form
Markets served
Scale of the reporting organization
Significant changes during the reporting period regarding size,
structure, or ownership
Awards received in the reporting period
Report parameters
Reporting period
Date of most recent report
Reporting cycle
Contact point for questions regarding the report or its contents
Definition of report content
Boundary of the report
Specific limitations on the scope or boundary of the report
Basis for reporting on joint ventures, subsidiaries,
leased facilities, and outsourced operations.
Data measurement and calculations
Re-statements of information provided in earlier reports
Significant changes from previous reporting periods in the scope, boundary,
or measurement methods applied in the report
GRI content comparison
Policy and current practice with regard to seeking external assurance for the report
Governance, Commitments, and Engagement
Governance
Governance structure of the organization
Position of the Chairman of the Board of Directors
Independence of the Members of the Board of Directors
Mechanisms of shareholders and employees to provide recommendations
or direction to the Board of Directors
Linkage between compensation for members of the Board of Directors,
senior managers, and executives, and the organization’s performance
in the field of corporate responsibility
Processes in place for the Board of Directors to ensure conflicts
of interest are avoided
Qualifications and expertise of the Board of Directors in the fields
of strategic leadership and corporate responsibility
Mission, values, and codes of conduct
Procedures of the Board of Directors for overseeing the organization’s
management of corporate responsibility
Processes for evaluating the Board of Directors’ own performance
Commitments to external initiatives
Application of the precautionary principle
Annual report 2008
ronmental, and social facets of their activities according to the GRI reporting recommendations. The
contents and reporting principles used in Veikkaus’
annual report comply, where applicable, with the
recommendations of the GRI guidelines.
INCLUDED PAGE
COMMENTS
Yes
In part
4-5
6, 8, 10
From the perspective of the business operations strategy
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
34-35, 66
57
69
25, 69
13, 53
24-25
2, 14
No
Yes
Yes
Yes
Yes
No
1
1
1
92
1
Yes
No
No
1
1
In part
Yes
Yes
1
1
1
Yes
Yes
62-64
1, 90
Yes
Yes
Yes
Yes
7, 53
53
53
53
In part
54-55
Yes
53-55
Yes
58
Yes
No
5, 15
Yes
53
Yes
10
The definition of the report content is not presented
separately. The report focuses on Veikkaus’ social
responsibility and complies with GRI’s G3 reporting
guidelines.
INCLUDED PAGE
COMMENTS
4.12
Commitments to external initiatives of social responsibility
Yes
9, 49
International agreements on responsible gaming
signed by Veikkaus; the Energy Efficiency Agreement
4.13
Memberships in associations and advocacy organizations
Stakeholder engagement
Organization’s stakeholder groups
Identification and selection of stakeholders
Forms of stakeholder engagement
Key topics and concerns that have been raised through stakeholder engagement
Governance and key indicators
Approach to managing economic responsibility
Yes
9
Yes
Yes
Yes
No
16-17
Yes
7, 15, 53-56
INDICATORS OF ECONOMIC RESPONSIBILITY
Financial performance
Economic value generated and distributed
Financial implications and other risks and opportunities for
the organization’s activities due to climate change
Coverage of the organizational pension commitments
Yes
No
2-3, 14, 29
Yes
85
Notes to the financial statement 16.
Liabilities from employee benefits
Not relevant to Veikkaus’ activities
43
Average wage
4.14
4.15
4.16
4.17
5.
EC1 *
EC2 *
EC3
*
EC4 *
Significant financial assistance received from the government
Market presence
Smallest entry level wage within
the organization compared to national minimum wage
Purchases from locally-based suppliers
Procedures for local hiring of personnel
Indirect economic impacts
Investments in the infrastructure
Indirect economic impacts
Approach to managing environmental responsibility
EC5
EC6
EC7 *
*
EC8 *
EC9
INDICATORS OF ENVIRONMENTAL RESPONSIBILITY
Materials
Use of materials
Use of recycled materials
Energy
Direct energy consumption
Indirectenergyconsumption
EN1
EN2 *
*
EN3 *
EN4 *
EN5
EN8 *
EN11 *
EN12
*
EN16 *
EN17 *
EN19 *
EN20 *
EN21 *
EN22 *
EN23 *
EN26 *
EN27 *
EN28 *
EN29
Procedures to save energy and to improve energy efficiency,
and the energy saved due to them
Water
Total water withdrawal
Biodiversity
Location and size of land owned, leased, managed in, or adjacent to,
protected areas and areas of high biodiversity value outside protected areas
Description of significant impacts of organization’s activities, products,
and services on biodiversity in protected areas and areas of high biodiversity
value outside protected areas
Emissions and waste
Total direct and indirect greenhouse gas emissions
Other significant indirect greenhouse gas emissions
Emissions of ozone-depleting substances
NOx, SOx and other significant air emissions
Total water discharge
Total weight of waste by type and disposal method
Total number and volume of significant spills
Products and services
Initiatives to mitigate the environmental impacts of products and services
Reclaim, recycling, and reuse of products and packaging materials
Compliance
Fines and non-monetary sanctions for non-compliance
with environmental laws and regulations
Transport
Significant environmental impacts of transport
Approach to managing social responsibility
16-17, 19, 22-23, 45
No
In part
No
No
No
Yes
In part
In part
No
The governance system, Veikkaus’ CSR Programme,
Governance principles
18, 30
15, 47, 50
Veikkaus’ CSR Programme, Green Office,
Ecological Team
51
No
Inpart
14
In part
49
In part
48
Water consumption at the head office
In part
48
Land owned by Veikkaus
No
In part
No
No
No
No
In part
No
Heatandelectricityconsumptionat
the head office reported
49
48-51
CO2 emissions resulting from the electricity and
heat consumption of the head office
Waste generated at the head office
No
No
Yes
Non-compliance has not occurred
In part
Yes
50
15, 42
Service calls at retail outlets, kilometres
Veikkaus’ CSR Programme, social responsibility
Annual report 2008
63
LA1 *
LA2
LA3
*
LA4 *
LA5 *
LA6
LA7 *
LA8 *
LA10 *
LA11
LA12
LA13 *
LA14 *
HR1-2*,3,
4-7 *, 8-9
SO1
*
SO2 *
SO3
*
SO4
*
SO5
*
SO8
*
PR1 *
PR2
PR3 *
PR5
PR6 *
PR8
PR9 *
*
64
INDICATORS OF SOCIAL RESPONSIBILITY
Employees and working conditions
Workforce
Total workforce by employment type and employment contract
Employee turnover
Employee benefits
Labour/management relations
Percentage of employees covered by collective bargaining agreements
Minimum notice period(s) regarding significant operational changes
Occupational health and safety
Percentage of total workforce represented in formal joint
management-worker health and safety committees
Rates of injury, occupational diseases, lost days, and absenteeism,
and number of work-related fatalities
Education and counselling to assist workforce members regarding serious diseases
Training and education
Average hours of training per year per employee
Programmes for skills management and lifelong learning
Performance and career development reviews
Diversity and equal opportunities
Composition of governance bodies and composition and
diversity of employee groups
Ratio of basic salary of men to women.
HUMAN RIGHTS
Humanrights
SOCIETY
Community
Programmes and practices that assess and manage
the impacts of operations on communities
Corruption
Percentage and total number of business units analyzed
for risks related to corruption
Percentage of employees trained in organization’s
anti-corruption policies and procedures
Actions taken in response to incidents of corruption
Public policy
Public policy positions and participation in public policy development and lobbying
Compliance
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations
PRODUCT RESPONSIBILITY
Customer health and safety
Life cycle stages in which health and safety impacts
of products and services are assessed
Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services
Product and service labelling
Product and service information required
Practices related to customer satisfaction, including results
of surveys measuring customer satisfaction
Marketing communications
Programmes for adherence to laws, standards, and voluntary codes related
to marketing communications, including advertising, promotion, and sponsorship
Customer privacy
Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data
Compliance
Monetary value of significant fines for non-compliance with laws and
regulations concerning the provision and use of products and services
Key indicator recommended in the GRI standards
Annual report 2008
INCLUDED PAGE
COMMENTS
Yes
43, 69
Yes
Yes
14, 43
44
Number of employees, regular/fixed-term employees;
salaried/part-time employees
Staff changes; total turnover of employees
Occupational health care; recreational bonus
Yes
No
44-45
Collective bargaining agreements; trade union
Not reported separately. In compliance with the
Finnish legislation on cooperation within undertakings
Yes
44
Yes
43
Yes
44
Description of occupational health care
Yes
Yes
Yes
43
42
42-44
Training days/total workforce
Description of education and training programmes
In part
42
In part
42
Equal opportunities in Veikkaus; gender and age
distribution; average age of staff
Requirement level of the Equal Opportunities Plan;
basic salary ratio not reported
No
In part
30
In part
55-56
NotrelevanttoVeikkaus’activities.
Veikkaus complies with the laws of Finland
Monitoring system described
No
No
Yes
9
Yes
Yes
15, 39
Yes
10, 39
In part
Yes
15, 23, 38-40
23-24, 41
Description of the monitoring system
Yes
15, 18, 41
Veikkaus’ CSR Programme,
Veikkaus’ Ethical Guidelines for Marketing
Yes
23
Customer data protection and privacy protection
Yes
Ethical evaluator tool for the assessment of game
ideas; responsibility evaluator of games
Applications for recommended decisions
FINANCIAL STATEMENT 2008
Board of Director’s report ...............................................................................
Income statement ...........................................................................................
Balance sheets ...............................................................................................
Cash-flow statement ......................................................................................
Changes in shareholders’ equity .....................................................................
Accounting principles .....................................................................................
Notes to the financial statements
1. Turnover by games and game groups .....................................................
2. Development of financial result .............................................................
3. Other operating income .........................................................................
4. Depreciations ........................................................................................
5. Purchase of services ..............................................................................
6. Other operating expenses......................................................................
7. Financial income and expenses ..............................................................
8. Tangible assets and depreciations .........................................................
9. Intangible assets and depreciations .......................................................
10. Investments and long-term investments ................................................
11. Investments held for sale ......................................................................
12. Short-term receivables...........................................................................
13. Liquid assets .........................................................................................
14. Share capital, reserve fund, undistributed prizes’ fund ..........................
15. Short-term liabilities ..............................................................................
16. Liabilities from employee benefits .........................................................
17. Related party transactions ....................................................................
18. Contingent liabilities and amounts payable
on other leasing agreements .................................................................
19. Signatures .............................................................................................
20. List of accounting books and record formats ..........................................
66
72
73
74
75
76
79
80
80
80
81
81
81
82
83
83
84
84
84
84
85
85
86
87
87
87
Auditors’ report .............................................................................................. 88
Statement by the Supervisory Board .............................................................. 89
Financial report 2008
65
BOARD OF DIRECTORS’ REPORT 2008
TURNOVER
BY GAME GROUPS
EUR MILLION
1,600
1,261 1,316 1,361 1,391 1,475
OTHER DRAW GAMES
INSTANT GAMES
1,400
SPORTS GAMES
LOTTO GAMES
The year under review was the 68th year of opera-
Joker, Keno, Medals Game and Veikkaus Bingo; the
tions of Veikkaus Oy. The company’s economic
sports games Live Betting, Multibet, Fixed Odds
development during the period can be deemed
Betting, Result Odds Betting, and Winner Odds
excellent. Veikkaus Oy attained a turnover of
Betting; the other sports games Football Pools, V5
EUR 1 474.8 million, the highest in the company’s
andV75Off-trackHorseBettingandtheotherV-
history. This meant an increase of EUR 83.4 million
games; as well as the instant games Casino Instant,
(+6.0%) over the previous year.
Nature Instant, Mini Ässä Instant, Lucky Words
Instant, Ässä Instant, the eInstants, the theme
1,200
The result of the financial year amounted to EUR
instants, and the Christmas Instants.
449.1 million (+5.1%), of which the company
1,000
800
600
400
200
returns EUR 407.9 million (+2.6%) to the Ministry of
In addition to Lotto, the games to increase the most
Education, to be distributed to Finnish arts, sports,
in relative popularity were Keno, Football Pools,
science, and youth work. The Ministry of Educa-
and the internet instants, which had already been
tion distributes the difference between Veikkaus’
growing during the previous year. Lotto was played
financial result and the return to the Ministry of
with EUR 468.3 million (+11.6%) during the year
Education, amounting to EUR 41.2 million, to the
under review. Keno was played with EUR 316.9
beneficiaries as specified at a later date. In addition
million (+7.6%); Football Pools with EUR 65.7 million
to the return to the Ministry of Education, Veikkaus
(+12.8%); and the eInstants with EUR 22.1 million
paid EUR 68.3 million of lottery tax (+5.5%) to the
(+26.6%).
State. Veikkaus operations are not subject to value
0
2004 2005 2006 2007 2008
REL ATIVE SHARE OF THE
TURNOVER BY GAME GROUPS 2008
SHARE 2007 IN BR ACKETS
added tax, which is why the company cannot deduct
The turnover of the lotto games increased from
the VAT on its purchases of goods and services.
EUR 553.1 million, i.e. EUR 48.2 million (+9.5%) from
Veikkaus paid a total of EUR 17.4 million (-4.1%) of
the previous year. Lotto’s success was boosted
VAT to the State in 2008.
especially by the change of line price carried out
successfully at the beginning of the year and the
LOTTOPELIT
% (37,7 %)financial performance was due to
The37,3
excellent
raise of the jackpot to a minimum of one million
URHEILUPELIT
% (27,8 %) development of the turnover of
the27,1
favourable
euros. The number of jackpots, which was larger
games
with
MUUT ARVONTAPELIT
25,2 %
(24,0bigger
%)
PIKA-ARVAT
*
66
margins. Among the factors
than in the previous year, also drew players.
that
decreased
10,4
% (10,5 %) the financial profit of the period
was the collective bargaining agreement made in
The turnover of the other online draw games
autumn 2007, leading to an increase in the person-
amounted to EUR 395.1 million, with a growth of
nel expenses. The introduction of the new game
EUR 23.9 million (+6.4%). Sports games posted a
system also raised the salary costs, the purchase of
turnover of EUR 375.7 million, i.e. EUR 10.5 million
services, and depreciations.
(+2.9%) more than in the previous year. In the
sports games group, the turnover of Multibet was
LOTTO GAMES
37.5% (36.3%)
SPORTS GAMES
25.5% (26.2%)
GREATEST GROWTH IN LOTTO AND KENO
smaller than in 2007 (-9.6%), whereas the biggest
OTHER DRAW GAMES
26.8% (26.7%)
Veikkaus’ game selection included the following
growth was attained in Football Pools (+12.8%).
INSTANT GAMES
10.2% (10.8%)
games in the year under review: the lotto games
The instant games posted a turnover of
Lotto and Viking Lotto; the other online draw games
EUR 150.9 million, which is EUR 0.9 million larger
Specification by games on page 79 of the financial statement.
(+0.6%) than in the previous year. The increase re-
The price and prize categories of Lotto were
associated with the situations where people play.
sulted from the popularity of the internet instants,
reformed at the beginning of February (round 6/08),
Thinking in terms of the motivational states guides,
whereas the sales of the traditional paper instant
as the line price was raised from 70 to 80 cents.
e.g., Veikkaus’ marketing communications and the
tickets decreased.
The previous change of Lotto’s line price took place
development of products and sales channels. As
in February 2004, with a raise from 60 to 70 cents.
the strategy was updated, Veikkaus’ organization
The lotto games represented 37.5% of Veikkaus’
The entries with seven matching numbers are
was reformed and the governance system was de-
turnover (36.3% in 2007); the other draw games
now allocated 13.6 percent of the round-specific
lineated more specifically. The requirements of the
represented 26.8% (26.7%); the sports games
turnover instead of the previous 10 percent. The
changing operating environment were tackled by
represented 25.5% (26.2%); and the instant games
changes introduced raised Lotto’s basic jackpot to a
reinforcing Veikkaus’ business development func-
10.2% (10.8%).
million euros. Even the other prize tiers were slightly
tion. Following the specification of the governance
altered, but they did not have a significant effect
system, two Executive Teams were established on
PRIZE PAYOUT TOTALLED
on the euro amounts of the prizes. The reform was
1 August 2008: the Strategic Executive Team and
EUR 754.6 MILLION
based on our customers’ wishes: the majority of the
the Operative Executive Team currently work to
We paid out a total of EUR 754.6 million (+5.8%)
players of Lotto say they play Lotto because they
assist the CEO in the company management.
of prizes to players. The growth was due to the
are dreaming of winning a large jackpot.
In the course of the year 2008, player identification
increase in the total turnover. Veikkaus’ gaming
licence was amended on 25 September 2008. The
We paid a total of EUR 80.3 million of retail commis-
was clearly more frequent than before. Veikkaus
amendments concerned the payout percentages
sions (+2.4%), i.e. 5.4 percent of the turnover. The
Card holders and customers registered in Veikkaus’
of parimutuel betting games and the planned
costs incurred by the draws and result information
internet gaming service veikkaus.fi numbered a total
multinationalgame.However,themultinational
amounted to EUR 11.7 million (+16.3%). Game
of 836 097 (+36.5%) at the end of the year. Each
game has not been launched so far, since some of
event cooperation cost us EUR 10.7 million (+6.8%),
individual customer was counted only once in this
the key partner countries still lack the necessary
whereas the playslip and ticket expenses amounted
figure. Veikkaus games were played with EUR 299.4
national licences. For this reason, the expenses
to EUR 7.5 million (+7.7%). We spent EUR 10.6 mil-
million (+18.9%) through the internet in 2008. In-
involved in the acquisition are treated as annual
lion (+6.9%) on product advertising, i.e. 0.7 percent
ternet gaming thus represented 20.3% of the total
figures in this report. The changes in the payout
of the turnover.
turnover of the games.
and the winner odds betting games. They were
CUSTOMER RELATIONS STRATEGY
Veikkaus Card, introduced in autumn 2006, is the
introduced in order to maintain the demand for
UPDATED AND ORGANIZATION REFORMED
most conspicuous part of Veikkaus’ customer iden-
betting games at an even level. The new payout
Veikkaus adopted a customer strategy in 2004
tity. At the end of 2008, the holders of Veikkaus
percentages were launched on 28 October 2008.
which was updated into a customer relations
Cards numbered up to 507 807, whereas they were
They meant an increase of the payout percentage
strategy in 2008. The new operational model,
just 278 575 at the beginning of January 2008.
of Result Odds Betting from 70 to 80 percent and
drawing more strongly on customer information,
By using their Veikkaus Cards, the players can
that of certain winner odds betting games from
was adopted in June. It is based on multi-dimen-
make sure that the possible winnings are directed
70 percent to a percentage varying between 80
sional customer segment thinking, reinforcing
securely and easily straight to their accounts. The
and 85. In 2008 the turnover of the winner odds
the company’s customer-focused and responsible
players are not awarded or offered bonuses for
betting games was boosted by the European
way of operating. Veikkaus’ customer-focused
playing much.
Championships in Football for a short period in the
strategy makes use of the identification of the
summer.
customers’ motivational states that are naturally
percentages concerned Result Odds Betting
67
RESPONSIBILITY A KEY ISSUE
ing CSR to its partners in cooperation and other
IN VEIKKAUS’ OPERATIONS
stakeholders in the field of sports; as well as by
During the year under review Veikkaus continued to
activating its CSR related communications.
invest in the development of responsible business
operations. The prevention of social detriments
The e-learning programme in CSR matters for the
and crime constitutes one of the central justifying
staff, titled The Responsibility Net, was finalized
grounds for the exclusive right principle applied to
and introduced at the beginning of October 2008.
gaming. The expenses incurred by the measures
By the end of the year 80% of Veikkaus’ staff, i.e.
taken to promote responsible gaming amounted to
over 300 employees, had taken and completed
EUR 3.3 million (+8.3%) in 2008. By these measures
the Responsibility Net with a passing grade. In the
Veikkaus promoted the responsibility and integrity
future the programme will be made part of the
of gaming either in its own business operations or
orientation training of new employees. Veikkaus’
in cooperation with its stakeholders and worked
game sales staff’s knowledge about responsibil-
to increase general knowledge about the national
ity matters was reinforced in connection with the
gaming system and its significance. The measures
training events for the sales clerks. Further, all the
included gaming restrictions introduced to the
points of sales were sent special info leaflets titled
game system; age limit controls; and the promotion
The Responsible Game Sales Clerk’s ABC Guide, pro-
of identified gaming. The expenses also covered re-
viding answers to the frequently asked questions
search projects on the detriments of gaming, which
related to age limits, underage gaming, and problem
Veikkaus financed by making payments to the
gambling.
MinistryofSocialAffairsandHealth,aswellasthe
700
NUMBER
OF EMPLOYEES
600
500
45
38
37
33
31
332 334 336 337 323
400
300
Veikkaus continued to cooperate with the Finnish
Peluuri. The joint costs of these two fields of activ-
Slot Machine Association RAY on the project to
ity amounted to some EUR 652 000 in 2008.
develop a responsibility evaluator tool of games
(Responsibility Evaluator) which is part of Veikkaus’
Veikkaus provides a safe channel of gaming to its
product development process. The tool can be used
customers. This entails strong consumer protection
to analyse the accessibility of the games, as well
and the limitation of gaming as deemed neces-
as their attractive and social features. It enables
sary, including age and stake limits. The need for
Veikkaus to evaluate all the new game ideas, with
limitations varies from one game to another. The
the objective of identifying all of their potential risk
players can regulate their own gaming by making it
factors from an ethical perspective.
subject to gaming restrictions specified in euros at
200
100
daily, weekly, or monthly levels. The players can also
During the year under review, the members of World
choose self-exclusion for the rest of the day or the
Lottery Association (WLA) adhering to the model of
following three months.
operations based on corporate responsibility carried
out a self-evaluation of their level of responsibil-
0
2004 2005 2006 2007 2008
PART-TIME
SALARIED
68
funding of the Finnish problem gambling helpline
In 2008 Veikkaus strengthened its corporate social
ity at the scale from 1 to 4. According to its own
responsibility by providing its staff with training
evaluation, Veikkaus is at the highest level 4. WLA is
in CSR matters and by offering material concern-
planning to conduct audits on the self-evaluations.
Both WLA and the European Lotteries (EL) have
the sectors of CSR considered. Further, over one
game system, with the total investment amounting
special CSR working groups whose task it is to cre-
third of the respondents considered Veikkaus had
to EUR 50.4 million.
ate uniform and comprehensive operational models
communicated its corporate responsibility very
for the promotion of responsible gaming in practice.
well or fairly well. The survey covered thirty large
The change of the central game system carried
During the year under review, both associations
Finnish companies.
out in November 2008 was the last stage in the
three-stage game system reform. At the first
were preparing a process of assurance in order to
audit the measures taken by the member lotteries
PRODUCT DEVELOPMENT AND RESEARCH
stage of the reform in November 2006, Veikkaus
to promote responsible gaming.
Veikkaus spent a total of EUR 5.0 million (+8.5%)
renewed its internet gaming system. In July 2007
on product development and research in the year
the online terminals of all the retail outlets and the
under review.
company’s data communications were reformed. In
The Nordic lotteries continued their cooperation
the course of the game system reform, Veikkaus’
and active knowledge sharing for the promotion of
corporate social responsibility, initiated in the previ-
Special investments were made in the eInstants
entire game system, including the support systems,
ous year. The members of the Nordic CSR Working
offered at the web service veikkaus.fi. Their sales
was modernized.
Group are the national lotteries of Denmark, Finland,
increased EUR 4.6 million (+26.6%) over the previ-
Iceland, Norway, and Sweden.
ous year.
According to a CSR survey commissioned by
Veikkaus’ business intelligence and research func-
a significant part of which concerned the game
Veikkaus from the Finnish market research house
tions centred on the analysis of customer relations,
system reform. The demanding reform aims at
Taloustutkimus in the summer of 2008, almost
customer behaviour, and the changing gaming
ensuring Veikkaus’ ability to serve Finnish custom-
all Finns (96%) considered it important or very
sector. As the strategies were updated, information
ers and society in compliance with high standards
important that Veikkaus funds were returned to
was acquired especially to support planning, and
of quality and responsibility even in the future. The
Finnish society. The survey showed that Finns
the focus was on the construction of new models
implementation of the new game system was suc-
were in favour of the exclusive right system: more
of reporting, corresponding to the updated model
cessful. Veikkaus’ game system reform ranks among
than eight out of ten Finns thought the gaming
of operations. The most important sources of
the largest information system projects to have
monopoly and the fact that Veikkaus funds
information in this work included Veikkaus’ internal
ever been carried out in Finland.
stayed in Finland were a good thing. The majority
sources, as well as the Atlas consumer survey and
of the respondents (69%) were not in favour of
the follow-up study of product labels.
During the year under review, Veikkaus spent a
total of EUR 21.0 million (-34.1%) on investments,
EMPLOYEES KNOW THE OBJECTIVES
At the end of 2008 Veikkaus had 323 salaried and
increasing the game offerings of foreign operators
in Finland. Around 70% (67% in 2007) of Finns
31 part-time employees, most of whom (97%) had
considered Veikkaus’ operations more responsible
permanent employment contracts. In other words,
thanthoseofforeigngamingcompanies.Halfof
the total number of employees was 354, i.e. sixteen
the respondents thought Veikkaus had managed
employees fewer than in the previous year. Of the
staff, 196 were women and 158 were men.
its responsible operations well or very well. Finns
valued reliability and integrity most in Veikkaus’
NEW GAME SYSTEM INTRODUCED
operations.
The game system reform, initiated in 2005, has
In the year under review ten new employees were
been the largest one-time investment in Veikkaus’
hired, eight retired, ten gave their notice, and the
According to the survey “Companies and CSR
history. It was finalized in November 2008. At the
employment contracts of eight fixed-term employ-
2008” by TNS Radar, Veikkaus was regarded as
same time, changes relating to the development
ees were terminated. The average turnover of the
the second most responsible Finnish company, all
of Veikkaus’ business operations were made to the
personnel was 5.1% (7.7% in 2007).
69
Veikkaus’ new model of operations, updated to
of EUR 5.2 million. The personnel expenses were
processes. The gaming activities are supervised by
comply with the customer relations strategy, was
increased most by the collective bargaining agree-
official supervisors appointed by the Ministry, who
introduced in 2008. The staff’s work enjoyment
ment made in autumn 2007: the second pay rise
also confirm the game results and number of prizes
was supported with, e.g., measures related to the
included in the agreement entered into force on
on each round.
enhancement of working ability and workplace
1 March 2008.
safety. On the average, Veikkaus’ employees were
Veikkaus complies with a comprehensive risk
on sick leave for 4.7 days per person. There were six
In August and September 2008, a staff survey
management system (ERM). The ERM framework
work-related accidents, one of which led to a longer
was organized. It was responded to by 84% of the
describes the risk management process in the
period of absence from work. Veikkaus has an incen-
employees (79% in 2007). The survey showed that
company, together with the related responsibili-
tive scheme which covers the entire staff.
they were somewhat happier with their work than
ties and procedures. The ERM is integrated in
in the previous year. The employees were most
the planning processes of Veikkaus’ activities in
The staff policy also involves regular objective and
satisfied with their own tasks and the company’s
a way which ensures the regular and versatile
career development talks with all the employees.
objectives, strategy, and values. They were also
evaluation of the risks inherent in the business
During the year under review, the staff training
mainly satisfied with the company and its opera-
objectives and the company’s preparedness
and development focused on the reinforcement
tions; the staff rated their satisfaction with the av-
for tackling them. The company’s management
and enhancement of the specialist employees’
erage grade of 3.9 (3.8 in 2007) on the scale of 1 to
and different functions are supported by a Risk
professional skills. The Game Academy, the training
5. The highest grades were given in the questions
Management Team, which works to ensure the
programme for Veikkaus’ personnel, offered 47
concerning the employees’ own tasks, as well as in
functioning of the risk management system and
different training events in 2008. The training
those concerning the company objectives, strategy,
its continuous development.
programme, which aims at supporting the employ-
and values. The highest grades were given to the
ees in their work, centred on the management of
statement “I am familiar with the objectives of my
The external auditors of the standards are Det
the staff’s professional and IT skills. The staff’s
unit”. According to the staff survey, the organiza-
Norske Veritas (DNV), which audits Veikkaus’
proficiency in the core matters of the industry was
tional change implemented in 2008 was received
compliance with the World Lottery Association
reinforced by organizing training in customer loyalty,
well among the employees.
Security Standards WLA-SCS:2006, and Inspecta
responsibility, and the company’s processes of
product development.
Sertifiointi Oy, which audits the compliance
On the basis of the 2007 survey, five themes had
with the information security standard ISO
been identified as needing special attention: open-
27001:2005 (former BS 7799-2:2002 standard).
In addition to the head office in Vantaa, Veikkaus’
ness, equality, workload, division of labour, and job
staff works in the company’s five sales offices,
rotation. The themes of openness, equality, and job
GOVERNMENT BILL CONCERNING
located in five major Finnish cities: Turku, Vaasa,
rotation showed better results in the 2008 survey
THE LOTTERIES ACT AMENDMENT
Kuopio, Oulu, and Tampere, where there is also a dis-
than in the year before.
During the year under review, the government made
trict office carrying out activities such as customer
70
a bill concerning the amendment of the Lotteries
CONTROL AND RISK MANAGEMENT
Act. The government bill covers the marketing and
In accordance with the Finnish Lotteries Act
age limits of games, and the executive power of the
In 2008 the company’s personnel expenses were
(1047/2001), Veikkaus’ lottery, pools, and betting
licensing authority.
EUR 24.9 million (+11.5%). The salaries repre-
activities are supervised by the Ministry of the Inte-
sented EUR 19.7 million, whereas the statutory
rior. The Ministry approves the rules of the games.
It has been proposed that a general age limit of
staff insurances, voluntary pension expenses, and
Player complaints concerning prize payout are
gaming of 18 years should be laid down by the
indirect personnel expenses amounted to a total
processed in the Ministry as recommended decision
Lotteries Act. According to the government bill,
service supporting internet gaming.
marketing authorised games and gaming organiza-
the national exclusive right applied to betting, filed
Veikkaus’ activities will be guided by a customer-
tions should be basically allowed if it is done in a
with the Commission by private bookmakers. Finland
oriented and responsible model of operations even in
responsible manner and its objective is to channel
responded to the European Commission’s Reasoned
the future. The objective is that all adult Finns who
the demand to games that are authorised in Finland.
Opinion in May 2007. In its response, the Finnish
are interested in Veikkaus games can play, but in a
Further, the marketing measures should not be
government repeated its view which it had already
controlled manner. In the future, players should be
targeted at minors and they should not create im-
given in its response to an Official Letter from the
identified during all gaming transactions. Identified
ages favouring large-scale gaming. It has also been
Commission in 2006 that Finland does not neglect
gaming will give Veikkaus a chance to meet the
proposed that the marketing of games involving
to comply with the obligations pursuant to the EC
customers’ needs even better.
special risks of provoking gaming addiction should
Treaty whilst restricting the provision and marketing
be banned. The government bill specifies the exist-
of games by foreign gaming companies in Finland.
Veikkaus’ operations are affected by the changes in
ing games that provoke gaming addiction as inter-
The infringement proceedings concerning Finland
the overall economic environment that are reflected
net instants, betting games (Multibet, Result Odds
have not advanced after May 2007.
in consumer behaviour even as regards gaming.
and Live Betting), most slot machine games, casino
Although the gaming systems of different countries
The profit expectation for Veikkaus funds recorded
games, gaming casinos, and certain toto games.
differ from each other, they have a common basis:
in the State Budget for the year 2009 is EUR 414.0
Further, it has been planned that the Lotteries Act
society makes sure that the gaming business is
million. In the light of the present situation, the profit
should include a provision reinforcing the ban on
managed reliably, responsibly, and according to high
expectation is attainable.
illegal gaming operations and marketing by making
standards of quality. It is society’s task to channel
them subject to a conditional fine.
gaming in the right way, making sure that gaming
BOARD OF DIRECTORS’ PROPOSAL
stays enjoyable entertainment and is kept at a
FOR THE DISTRIBUTION OF PROFITS
The themes to be dealt with in the second phase
moderate level in proportion to the players’ available
The Board of Directors proposes that EUR 407 935
of the amendment of the Lotteries Act include
funds. Within the European Union, the regulation of
428.26 of the total profit of EUR 449 135 428.26
the licensing system; the guidance of the gaming
gaming at the national level has been recurrently
for the financial year of 2008 be returned to the
organizations; player identification even in slot
accepted as a common principle.
Ministry of Education, while EUR 41 200 000.00
Betting, Winner Odds Betting, Fixed Odds Betting
machine games; the prevention or restriction of
shall be transferred to the undistributed prizes’
cross-border gaming over the internet; the organiza-
Finns are in favour of the prevalent gaming system.
tion and resourcing of the licensing and supervisory
In a survey on social responsibility commissioned by
bodies; and the resources of the monitoring, preven-
Veikkaus in June 2008, the majority of the respond-
tion and treatment of and research into problem
ents (82%) considered Veikkaus’ exclusive right to
gambling. The deadline for making the proposals
run games in Finland a good thing.
fund.
concerning the second phase of the amendment
was 31 March 2009.
FUTURE PROSPECTS
Veikkaus offers Finns experiences having to do
At the end of March 2007, Finland was sent a
with dreaming, hobbies, excitement, and community
Reasoned Opinion by the European Commission. The
involvement. Veikkaus generates unique societal
Reasoned Opinion concerns Football Pools and sports
value and offers its customers a chance to win
betting games, provided by Veikkaus on the basis
monetary prizes as a significant additional value.
of its exclusive right. The procedure, which belongs
to EU practice, is based on complaints concerning
71
INCOME STATEMENT
Euro
NOTES
1 Jan 2008 – 31 Dec 2008 and 1 Jan 2007 – 31 Dec 2007
2008
TURNOVER
1
1,474,758,880.65
Other operating income
3
2,223,968.74
937,570.85
754,574,530.28
712,988,164.97
68,285,189.73
64,751,830.03
80,323,094.70
78,432,607.13
Prizes
Lottery Tax
2007
1,391,360,095.29
Raw materials and services
Retail commissions
Playslips and lottery tickets
7,531,227.51
6,995,546.98
Drawing expenses and result service
11,748,315.07
10,099,204.89
Game event cooperation
10,695,301.95
10,014,024.41
Product advertising
10,563,584.51
9,882,519.89
Data Communications
479,575.86
-47,182.30
121,341,099.60
115,376,721.00
Expenses from employee benefits
Salaries and compensations
19,671,246.22
17,809,119.30
Pensions
4,107,145.66
3,406,389.80
Other indirect personnel expenses
1,140,038.67
1,139,086.78
24,918,430.55
22,354,595.88
Purchased services
Depreciations and write-downs
Other operating expenses
5
17,175,389.30
14,721,375.86
4,8,9
23,318,675.95
17,324,124.30
6
26,624,076.34
23,662,186.77
440,745,457.64
421,118,667.33
6,267,546.68
OPERATING PROFIT
Financial income and expenses
Financial income
7
8,391,217.26
Financial expenses
7
1,246.64
757.85
8,389,970.62
6,266,788.83
449,135,428.26
427,385,456.16
NET PROFIT FOR THE FINANCIAL YEAR
Income/share (Income per share has been calculated by dividing the profit for the financial year by the number of shares)
72
Number of shares
498
498
Income per share (thousand euros)
902
858
BALANCE SHEETS
Euro
ASSETS
NOTE
31 Dec 2008 and 31 Dec 2007
2008
2007
NON-CURRENT ASSETS
Tangible assets
8
39,149,701.69
38,619,049.26
Intangible assets
9
33,015,424.53
37,414,590.53
11
20,416,754.58
13,514,100.42
332,438,085.59
314,222,773.60
Investments available for sale
OTHER RECEIVABLES
Advance payments
Receivables
12
13,414,795.44
28,066,633.56
Liquid funds
13
208,136,650.42
162,278,626.33
646,571,412.25
594,115,773.70
169,320.00
TOTAL ASSETS
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Subscribed capital
14
169,320.00
Reserve funds
14
276,378.01
276,378.01
Undistributed prizes’ fund
14
94,867,449.45
65,217,449.45
Profit for the financial year
449,135,428.26
427,385,456.16
Total shareholders’ equity
544,448,575.72
493,048,603.62
LIABILITIES
LONG-TERM LIABILITIES
Liabilities arising from employee benefits
16
2,587,000.00
2,827,000.00
Other long-term liabilities
16
354,625.90
290,275.00
Advances for multi-week subscriptions
15
13,292,838.42
11,456,375.08
Trade payable
15
6,200,919.45
4,179,906.97
Winnings payable
15
24,729,385.71
23,481,693.89
Settlement debts to the State
15
17,012,749.85
12,417,170.68
Accruals and deferred income
15
21,341,504.15
28,526,517.69
Other short-term liabilities
15
16,603,813.05
17,888,230.77
646,571,412.25
594,115,773.70
SHORT-TERM LIABILITIES
TOTAL SHAREHOLDERS’ EQUITY
AND LIABILITIES
73
CASH-FLOW STATEMENT
EUR thousand
2008
2007
Cash-flow from business operations
Operating profit
440,745
421,119
24,745
17,199
14,644
-3,456
1,056
-2,291
Adjustments
Operations with no related payment transaction
Change in working capital
Change in non-interest bearing receivables
Change in trade and other payables
Dividends received
Interest received
Interests paid
Net cash-flow from business operations
2
3
8,389
6,264
-1
-1
489,580
438,838
-30,854
-34,841
3,075
156
Cash-flow from investments
Investments in tangible and intangible
assets
Sales of tangible and intangible
assets and investments
Repayments on loan receivables
Net cash-flow from investments
8
22
-27,771
-34,663
Cash-flow from financing
Returned to the Ministry of Education
Net cash-flow from financing
-403,718
-403,718
Change in liquid funds
45,858
457
Liquid funds at the beginning of the financial year
162,279
161,822
208,137
162,279
Liquid funds at the end of the financial year
74
-415,951
-415,951
CHANGES IN SHAREHOLDERS’ EQUITY
EUR thousand
Shareholders’ equity 31 Dec 2006
Share
capital
Reserve
fund
169
276
Undistributed
prizes’ fund
Operating
fund
Other
shareholders’
equity
Retained
earnings
Total
shareholders’
equity
34,133
10,635
407,689
452,903
Net profit for the financial year
427,385
Return to the Ministry of Education
- 387,239
Transfer to the operating fund/
from the operating fund
31,085
Transfer to the undistributed prizes’ fund
65,217
169
276
65,217
Net profit for the financial year
- 20,450
427,385
493,049
449,135
Return to the Ministry of Education
- 397,735
Transfer to the undistributed prizes’ fund
- 10,635
- 65,217
169
276
29 650
- 29,650
94,867
449,135
544,449
75
ACCOUNTING PRINCIPLES 2008
CORPORATE INFORMATION
Whilst preparing a financial statement in accord-
FIXED ASSETS
Veikkaus Oy is a Finnish lottery domiciled in the
ance with international accounting standards, it is
Fixed assets have been measured at their original
City of Vantaa. Its operations are regulated in
necessary to make estimates for the future. The
acquisition cost, less the accumulated depreciations
accordance with the Lotteries Act and the gaming
estimates have an effect on the asset and liability
in the balance sheet. The share of the company’s
licence, effective until 31 December 2011. Veikkaus
figures in the balance sheet, as well as on the net
own work, entered into the intangible assets is acti-
is owned by the Finnish Ministry of Education and
profits and losses for the financial year. The most
vated as part of the acquisition cost. The expenses
supervised by the Ministry of the Interior.
important estimates in Veikkaus’ financial state-
concerning an asset at a later date are activated
ment have to do with the write-down periods of
when they correspond to the economic profit.
The Board of Directors of Oy Veikkaus approved this
fixed assets and the assumptions used as a basis
Other expenses, such as the normal measures of
financial statement for publication in its meeting
for counting the pension-based liabilities. The
maintenance and repair, are recorded as costs in the
of 24 February 2009. According to the Finnish
realized figures may deviate from the estimates.
income statement at their date of occurrence.
Companies Act, the owner has the right to approve
Further, applying the accounting principles always
or reject or decide to make changes to the financial
requires consideration.
Write-down periods
of fixed assets (years):
statement in a General Meeting following the
ITEMS IN FOREIGN CURRENCY
Buildings and constructions ..................................................25
Veikkaus’ operating currency is euro. Business
Renovations of apartments ...................................................... 5
BASIS OF PRESENTATION
transactions in foreign currency have been recorded
Machinery, equipment,
This financial statement was drafted in accordance
as euros using the prevailing exchange rate. Re-
and instalments in real estates .............................................. 5
with the IFRS standards effective on 31 December
ceivables and liabilities have been translated into
Other machinery and equipment .......................................... 4
2008. The IFRS standards refer to the international
the operating currency using the prevailing rate
IT software and appliances ..................................................4-8
accounting standards accepted for use within the EU.
at the date of the financial statement. Profits and
publication of the statement.
losses arising from business transactions in foreign
The profits and losses resulting from the sales or
The notes to the financial statement comply with
currency and the translation of the receivables
assignment of fixed assets are recorded as other
the requirements of the Finnish Accounting Act and
and liabilities have been recorded in the income
operating income and expenses in the income
Companies Act, supplementing the IFRS standards.
statement. The translation profits and losses of the
statement. The balance values of fixed assets are
Changes in the standards or their interpretation
business operations are included in the respective
followed in the financial statements to detect pos-
having been introduced during the financial year
items above the net profit.
sible depreciations.
have not affected Veikkaus’ financial statement.
Prevailing rate at
GENERAL REMARKS
RESEARCH AND DEVELOPMENT
the date of the
Research costs are recorded as expenses in the
financial statement
income statement for the financial year during
The accounting data are shown in thousand euros,
Currency
except for the income statement and the balance
USD .................................................................................................1.3917
which they have occurred. Expenses related to the
sheet, and they are based on the original acquisition
GBP .................................................................................................0.9525
development of new products, offerings, and proc-
costs, unless otherwise indicated in the accounting
CHF .................................................................................................1.4850
esses are activated if the intangible asset resulting
principles below.
SEK ..............................................................................................10.8700
from the development work generates economic
profit in the future. Further, the costs incurred by
the development shall be definable in a reliable
manner.
76
LEASES
the short term of maturity of the investments. The
concerning, e.g., the termination of employment
In accordance with the rental agreements made by
financial assets in the cash-flow statement corre-
of persons belonging to the pension settlement
Veikkaus, the risks and benefits of ownership are
spond to the financial assets in the balance sheet.
before the age of retirement; the future level of
salaries and the discount rate used in the calcula-
retained by the lessor, and payments made under operating leases are charged to the income statement
ADVANCE PAYMENTS
tions. The differences between the assumptions
on a straight-line basis over the period of the lease.
TO THE MINISTRY OF EDUCATION
and realizations or the changes in the realizations
Veikkaus makes quarterly advance payments on
generate actuarial gains and losses. To record them,
FINANCIAL ASSETS AND
its result for the financial year to its owner. The
Veikkaus uses a corridor method in accordance with
FINANCIAL LIABILITIES
result for the financial year is charged from the
the IFRS standard. At the date of transition to the
Financial assets are divided into different categories
shareholders’ equity following a decision by the
IFRS standards, all accumulated actuarial gains and
at the time of acquisition. The categorization de-
General Meeting.
losses are recorded in the shareholders’ equity.
acquired for. The purchases and sales of financial
POST-EMPLOYMENT BENEFITS
LONG-TERM EMPLOYEE BENEFITS
assets are recorded at the date of the transaction.
In accordance with the IFRS, the pension settle-
A one-time compensation equalling a month’s salary
ments are classified as either payment-based or
is paid as a bonus for years of service once the
Long-term investments held for sale include stocks,
benefit-based. The payment-based settlements
employee has served 30, 35, 40 and 45 years at
shares and marketable interest instruments. They
include settlements in which Veikkaus pays fixed
Veikkaus. The compensation liability has been count-
are measured at fair value. The untraded stocks
amounts to a pension corporation without an
ed on the basis of the personnel’s starting years at
are measured at acquisition cost because their fair
obligation to make additional payments even if
Veikkaus, by discounting the compensation liability
value cannot be defined reliably.
the fund lacked the sufficient assets to pay the
realized at the end of each year to the present.
pends on the purpose the financial asset has been
pensions. Payments made to the payment-based
Loans and other receivables include sales and other
pension settlements are recorded as pension
OTHER SHORT-TERM
receivables, as well as bank deposits. The difference
expenses in the income statement. The payments
LIABILITIES – THE PRIZE FUND
between the retailers’ sales and retail commissions
to the TyEL pension insurance system are regarded
The prize fund is not an actual fund, but the
and the prizes they pay out is recorded in the sales
as payment-based.
company’s liability to the players. The cents accumulated by the rounding of the prize sums and the
receivables.
The rest of the pension settlements are benefit-
share of prizes undistributed in the prize distribution
The financial liabilities include the short-term li-
based. Concerning them, a liability based on certain
of Veikkaus games in accordance with the gaming
abilities with no interest.
assumptions is recorded in the balance sheet, illus-
licence, are transferred immediately to the prize
trating the pensions to be paid in the future on the
fund in connection with the prize distribution. After
The maturity periods for the loans and other
basis of the settlement. The pension cost recorded
a claim period of one year, the unclaimed prizes in
receivables group, the short-term investments held
in the income statement illustrates, e.g., the in-
the prize distribution of the different games are
for sale and the financial liabilities are short and
crease in liabilities arising from the work performed
transferred to the prize fund. The assets in the
their fair values are thus considered to correspond
by the staff during the financial period.
prize fund are used for additional prize distributions
in the different games. The company is liable to
to the book values.
The items recorded from the benefit-based pension
distribute the entire prize amounts pursuant to the
The book value of the investments included in the
settlements are based on actuarial calculations. The
gaming licence to the players.
financial assets is measured at fair value due to
calculations are made on the basis of assumptions
77
TURNOVER
The printing expenses of the lottery tickets,
APPLICATION OF NEW
The sales of Veikkaus games are divided into
playslips, receipt rolls, and the expenses related to
OR REFORMED IFRS STANDARDS
turnover according to the draw date. The draws
Veikkaus Card are recorded as expenses at the date
Veikkaus will adopt the reformed IAS 1 Presenta-
take place either weekly or daily. The turnover of
of acquisition.
tion of financial statements standard in 2009. The
reformed standard will change the presentation of
Live Betting consists of gaming income less prizes
The drawing and result information expenses
the income statement and the changes in share-
include costs related to game supervision, TV coop-
holders’ equity. Other new or reformed standards
OTHER OPERATING INCOME
eration agreements and other expenses connected
and interpretations do not affect Veikkaus’ financial
AND EXPENSES
with the publishing of the results.
statements.
charged to the game in question.
The other operating income includes indemnifications, profit from sales of assets, and profits from
Game event cooperation covers the expenses
operations other than those related to the com-
arising from the usability of the object informa-
pany’s actual business operations, such as income
tion of the games. The expenses may be based
from messaging service and leasing.
on agreements, or they can be determined totally
according to the round-specific or annual turnover
The other operating expenses include the losses
of the games.
from sales of assets and expenses related to the
actual business operations.
TAXES
The lottery tax covers 9.5% of the amount of the
PRIZES
income from game and lottery ticket sales allocated
The income statement includes the prizes in accord-
to a calendar month in bookkeeping less the prizes
ance with the game rules charged to the turnover.
recorded as expenses on their basis. The amount
The prizes unclaimed during the previous year and
of funds charged to the prize fund/from the prize
the assets from the rounding of the prizes shall be
fund is added to/deduced from the difference thus
paid out according to the gaming licence on the
received.
later rounds of different games during the following
calendar year at the latest.
In accordance with section 59 of the Value Added
Tax Act, Veikkaus is not liable to pay VAT. The
RAW MATERIALS AND SERVICES
company’s expenses and investments include the
The retail commissions consist of compensations
effective VAT.
paid to the retailers on the basis of their game
sales. The commission percentages vary according
In accordance with section 21 of the Income Tax
to the games.
Act, Veikkaus is only liable to pay income tax on
income other than that which is determined in the
Lottery Tax Act.
78
NOTES TO THE FINANCIAL STATEMENTS
1.TURNOVER BY GAMES AND GAME GROUPS
Thousand euros
2008
2007
% share of
turnover
Lotto
% share of
turnover
468,341
31.8
419,823
84,729
5.7
85,084
6.1
553,070
37.5
504,907
36.3
Keno
316,860
21.5
294,457
21.2
Joker
76,906
5.2
75,413
5.4
1,321
0.1
1,357
0.1
395,087
26.8
371,228
26.7
Football Pools
65,692
4.5
58,262
4.2
V75Off-trackHorseBetting
29,754
2.0
27,760
2.0
V5Off-trackHorseBetting
26,147
1.8
24,318
1.7
22
0.0
10
0.0
Fixed Odds Betting
140,012
9.5
136,618
9.8
Result Odds Betting
29,315
2.0
27,243
2.0
Multibet
74,629
5.1
82,577
5.9
9,828
0.7
8,196
0.6
280
0.0
201
0.0
375,679
25.5
365,185
26.2
39,935
2.7
42,169
3.0
8,228
0.6
8,858
0.6
Casino Instant
45,211
3.1
46,938
3.4
Nature Instant
4,833
0.3
4,300
0.3
23,434
1.6
22,144
1.6
Theme Instants
2,558
0.2
3,462
0.2
Christmas Instants
4,625
0.3
4,718
0.3
eInstant Nature
1,129
0.1
1,211
0.1
eInstantHoroscope
1,896
0.1
2,073
0.1
eInstant Ässä
5,827
0.4
5,925
0.4
eInstant Casino
1,912
0.1
0
-
eInstant Sports
407
0.0
293
0.0
eInstant Lucky Words
8,765
0.6
5,972
0.4
eInstant Partner
1,275
0.1
1,120
0.1
eInstant Christmas
412
0.0
314
0.0
eInstantHobby
476
0.0
543
0.0
150,923
10.2
150,041
10.8
1,474,759
100.0
1,391,360
100.0
Viking Lotto
Lotto games
Other online games
Other online draw games
Other V games
Winner Odds Betting
Live Betting
Sports games
Ässä Instant
Mini Ässä Instant
Lucky Words Instant
Instant games
Total
30.2
TheturnoverofVikingLotto,WednesdayJoker,V5Off-trackHorseBettingandthedailydrawngamesKenoandVeikkausBingo,ofround1/09,togetherwith
the turnover of the betting games played between 26 and 31 December 2008 are included in the turnover of 2008 on the basis of the draw date.
79
2. FINANCIAL RESULT 2004-2008
Thousand euros
IFRS
2008
IFRS
2007
IFRS
2006
IFRS
2005
FAS
2004
Turnover
1,474,759
1,391,360
1,361,210
1,315,827
1,260,829
Net profit
440,745
421,119
403,288
397,229
394,517
29.9%
30.3%
29.6%
30.2%
31.3%
449,135
427,385
407,672
400,672
397,297
30.5%
30.7%
29.9%
30.5%
31.5%
449,135
427,385
407,689
400,397
397,735
30.5%
30.7%
30.0%
30.4%
31.5%
% of turnover
Result before appropriations
% of turnover
Result for the financial year
% of turnover
3. OTHER OPERATING INCOME
Thousand euros
2008
Rental income
Messaging service income
Indemnifications
Profit from stock sales
Returned prizes from fixed-match gaming
2007
8
8
78
91
676
547
56
0
4
6
Profit from investments in the retail
terminal network’s data communications
Other income
Total
4. DEPRECIATIONS
886
0
516
286
2,224
938
2008
2007
Thousand euros
Intangible assets
17,870
11,111
Buildings and constructions
1,645
3,623
Machinery and equipment
3,804
2,590
23,319
17,324
Total
Fixed assets are subject to straight-line depreciations according to their economic lifespan. Due to the transition into the new game system, depreciations for the
worth of EUR 11.4 million were recorded in 2005-2007 in an accelerated schedule. In 2008 EUR 8.4 million of depreciations were recorded in relation to acquisitions that are not expected to generate income in the following years. Lands, housing stocks, and works of arts are not subject to depreciations.
80
5. PURCHASE OF SERVICES
Thousand euros
Purchase of services
2008
2007
17,175
14,721
Auditors’ fees included in the purchase of services
Audit
Other services
Total
6. OTHER OPERATING EXPENSES
41
37
187
177
228
213
Thousand euros
2008
2007
Other advertising and marketing expenses
6,579
5,711
Other voluntary personnel expenses
1,329
1,419
Travel expenses
1,182
1,245
Representation and negotiation expenses
600
640
Car expenses
697
643
Equipment and freight charges
4,533
4,233
Machinery and equipment
2,360
1,878
Real estate expenses
2,958
2,204
Maintenance and servicing of software
2,806
2,533
Banking expenses
1,090
1,207
Phone expenses
Other office expenses
Total
7. FINANCIAL INCOME AND EXPENSES
665
783
1,825
1,167
26,624
23,662
Thousand euros
2008
2007
Dividend income from investments held for sale
2
3
Interest income from investments held for sale
710
413
7,678
5,849
Interest income from loans and receivables
Other financial income
1
2
Total financial income
8,391
6,268
Interest expenses
1
1
Financial expenses total
1
1
8,390
6,267
Total
81
8. TANGIBLE ASSETS AND DEPRECIATIONS
Thousand euros
Tangible assets
Land and
water
Buildings and
constructions
Machinery and
equipment
Other
Total
1,906
31,951
70,546
617
105,019
Increase
0
2,702
3,886
5
6,593
Decrease
0
0
614
0
614
1,906
34,653
73,818
622
110,999
66,400
Acquisition cost 1 Jan 2008
Acquisition cost 31 Dec 2008
Accumulated depreciations 1 Jan 2008
-
13,848
52,552
-
Depreciations for the financial year
-
1,645
3,804
-
Accumulated depreciations 31 Dec 2008
-
15,493
56,356
Book value 31 Dec 2008
1,906
19,160
17,462
622
39,150
Book value 1 Jan 2008
1,906
18,103
17,994
617
38,619
5,449
71,849
Tangible assets
Land and
water
Buildings and
constructions
Machinery and
equipment
Other
1,906
29,082
58,410
592
89,989
Increase
0
2,869
12,241
26
15,135
Decrease
0
0
105
0
105
1,906
31,951
70,546
617
105,019
60,261
82
Total
-
10,225
50,035
-
-
3,623
2,517
-
-
13,848
52,552
1,906
18,103
17,994
617
38,619
1,906
18,857
8,375
592
29,729
6,140
66,400
9. INTANGIBLE ASSETS AND DEPRECIATIONS
Thousand euros
Intangible assets
2008
2007
Computer software and
activated development costs
Computer software and
activated development costs
94,748
77,988
Increase
14,409
Increase
16,759
3,512
Decrease
Decrease
105,645
0
94,748
57,333
46,222
15,297
11,111
72,630
57,333
33,015
37,415
37,415
31,766
Veikkaus’ game system was reformed thoroughly between 2005 and 2008. The new game system was introduced in autumn 2008.
10. INVESTMENTS AND LONG-TERM INVESTMENTS
Thousand euros
2008
Software
IT appliances
Office equipment
Equipment, other installations
2007
20,353
18,508
2,561
16,075
251
28
1,384
122
Real estates
Basic improvements
Machinery, equipment, fittings
Company cars
Works of art
Investments in progress
Investments
Long-term investments
Total
6,290
138
64
6,429
360
320
383
180
5
26
-10,339
-3,428
21,003
31,895
9,851
2,946
30,854
34,841
83
11. INVESTMENTS HELD FOR SALE
Untraded shares
Other investments held for sale
Total
13. LIQUID ASSETS
Thousand euros
Thousand euros
2008
2007
566
3,514
Cash in hand and at bank
19,851
10,000
Investments held for sale
20,417
13,514
Loans and receivables
Total
2008
2007
10,251
3,405
10,735
13,824
187,150
145,050
208,137
162,279
The other investments held for sale include an untraded bond released on
1 February 2006, which will fall due on 1 Feb 2016. In the first year, the loan
Investments held for sale are certificates of deposit with short maturity.
has a fixed annual interest rate of 5%. In the following years, the annual inter-
Loans and receivables are deposits with short maturity.
est rate will be 5% for the days when the 3-month euribor stays within a separately specified fixed interest corridor. For the rest of the days, an 0.5% annual
Interest rate risk
interest is paid. The fair value of the loan is not considered to have changed
Short-term financial investments expose Veikkaus’ cash-flow to an interest
from the original acquisition cost when it is compared with the trading of a loan
rate risk, but their importance is low as a whole. The income and operative cash-
of respective term and conditions at the time of the financial statement. The
flows are mainly independent of the changes in market interest rates.
Nordea Senior bond is valued at its acquisition price. The acquisition price does
not differ essentially from the value at the date of the financial statement.
Investments are made in accordance with guidelines approved by the owner
and the Board of Directors. According to the guidelines, investments are made
12. SHORT-TERM RECEIVABLES
securing the capital, without currency risks and for five years at the maximum.
Thousand euros
Investing in stocks is not allowed.
2008
2007
Trade receivables
8,212
17,489
14. SHARE CAPITAL
Accrued income
5,065
10,449
The shares are 498 in number and their nominal value is EUR 340 per share.
138
129
13,415
28,067
Other receivables
Total
Reserve fund
The reserve fund remains unchanged.
The trade receivables consist of game fees uncharged from the retailers. The
charging period is from Monday to Sunday and the amount for the previous
Undistributed prizes’ fund
week is charged by direct debiting on Tuesdays. There are a total of 3 166
The difference between the net profit for the financial year and the return
retailers who game fees are charged from every week. Due to the nature of
to the Ministry of Education is entered into the undistributed prizes’ fund
the trade receivables, there is no traditional credit risk. The balance values of
in accordance with a decision by the General Meeting. The General Meeting
the trade receivables do not deviate from the fair values at the date of the
decides how the undistributed prize funds are used and the Ministry of
financial statement.
Education distributes them further to the beneficiaries.
Essential items of accrued income
Periodic interest income
Periodic game event cooperation
GTech receivables
Return from statutory insurances
Other accrued income
Total
84
Thousand euros
According to a decision by the Council of State, the undistributed prize funds
can amount to a maximum of EUR 100 million.
2008
2007
1,910
923
At the date of the financial statement, the undistributed prize funds
118
497
amounted to EUR 14.7 million of unused funds from the year 2004, EUR 19.4
2,873
8,682
million from the year 2005, and EUR 31.1 million from the year 2006; and
0
208
EUR 29.7 million from the year 2007; a total of 94.9 million. (IAS 1 Capital
164
140
5,065
10,449
Management)
15. SHORT-TERM LIABILITIES
16. LIABILITIES FROM EMPLOYEE BENEFITS
Thousand euros
Benefit-based pension schemes
Advance payments for multi-week subscriptions
2008
2007
13,293
11,456
6,201
4,180
The benefit-based pension schemes include the settlements made for part
of Veikkaus’ staff including the benefit pensions and additional pensions that
enable the employees to retire at an earlier age without losing part of their
Trade payable
pension. The special pension settlements have been awarded to persons having started their employment at Veikkaus before 1985, and additional pension
Accruals and deferred income
settlements have been awarded to persons having started before 1994.
Allocated personnel expenses
6,478
5,397
Accrued winnings payable
9,371
13,610
International lotto game, uninvoiced share
1,750
7,173
in the balance sheet as follows:
Other accruals
3,742
2,346
Thousand euros
21,342
28,527
Total
The benefit-based pension liabilities are determined
2008
2007
3,491
3,853
Fair value of funds
-1,539
-1,525
Balance underfund
1,952
2,328
635
499
2,587
2,827
Present value of liabilities
Winnings payable
24,729
23,482
Settlement debt to the State
Lottery tax
12,846
11,586
Withholding tax liability
509
420
Social security liability
42
39
Value-added tax
3,616
372
17,013
12,417
16,604
17,888
99,181
97,950
Actuarial gains (+) and
losses (-) not yet recorded
Net post-employment scheme liabilities
in the balance sheet
Benefit-based pension costs have been determined in the income
Other short-term liabilities
Total
statement as follows:
Thousand euros
2008
Winnings payable include uncashed prizes and return payments on bet-
Costs based on service during the financial period
ting games, as well as the funds deposited on the internet players’ game
Interest costs
accounts.
Other short-term liabilities include, e.g., the prize funds. In the balance sheet
2007
56
109
190
188
Expected gain from the funds in the settlement
-67
-77
Actuarial gains (-) and losses (+)
-19
0
Total
160
220
of 31 Dec 2007, they amounted to a total of EUR 17.8 million. In 2008 a total
of EUR 16.8 million of these funds accumulated and a total of EUR 18.2 million were used for prize payout. The funds totalled EUR 16.4 million in the
balance sheet of 31 Dec 2008. This balance includes EUR 4.2 million of funds
that can only be used for prize payout in Lotto according to the rules.
85
Change in present value of pension liabilities in the balance sheet
At the beginning of the financial year
Costs based on service during the financial period
Interest costs
2008
2007
Veikkaus grants its staff a bonus for years of service, classified as a long-
3,853
4,471
term employee benefit.
56
109
190
188
Actuarial gains (-) and losses (+)
-104
-872
Benefits paid
-504
-43
3,491
3,853
At the end of the financial year
Other long-term employee benefits: bonus for years of service
Liability recorded in the balance sheets
Thousand euros
At the beginning of the financial year
Increase
Change in the fair values of the funds in the settlement
2008
2007
1,525
1,880
67
77
Fair value of the funds at
the beginning of the financial year
Payments made to the settlement
400
115
-504
-43
51
-504
1,539
1,525
Benefits paid
Actuarial gains (+) and losses (-)
2008
2007
290
219
64
71
355
290
17. RELATED PARTY TRANSACTIONS
Thousand euros
Veikkaus’ related parties include the CEO, the Strategic Executive Team, the
Operative Executive Team, the Board of Directors, the Supervisory Board, and
the other state-owned companies.
Salaries paid;
Realized gain from the funds in the settlements was EUR 118,000 in 2008
compensations and employee benefits
and EUR -427,000 in 2007. The funds in the settlement consist of the
CEO
amount accumulated from the pension premiums, belonging to the responsi-
Veikkaus expects to pay EUR 400,000 to the settlement in 2009.
2007
353
327
1,768
1,137
Board of Directors
132
105
Supervisory Board
100
89
2,352
1,658
Other members of the Executive Team *
bility of the insurance company.
2008
Total
The amounts for the financial year and the previous financial year are as follows:
*
2008
Present value of the liability
Fair value of the funds in the settlement
2007
2006
3,491
3,853 4,471
-1,539
-1,525 -1,880
1,952
2,328 2,591
Balance underfund
Experience-based adjustments to
the funds in the settlements
51
-504
-531
151
-669
-618
Experience-based adjustments to
the liabilities involved in the settlements
Most important actuarial assumptions made in the settlement
86
2008
2007
Discount rate
6.00%
4.90%
5.30%
4.30%
Assumed future pay rise
3.50%
3.00%
In connection with the organizational reform on 1 August 2008, the
Strategic Executive Team and the Operative Executive Team were established. At the end of the financial year 2008 the two Executive Teams had a
total of fourteen members. In 2007 the Executive Team had eight members.
The salaries include the salaries for the entire year including performancebased bonuses.
The CEO has a six-month notice period. In case certain specific conditions are
fulfilled, he is entitled to a compensation corresponding to a twelve-month
salary if his contract of employment is terminated by notice. The period of
notice is two months for the members of the Executive Team. In case certain specific conditions are fulfilled the members of the Strategic Executive
Team are entitled to a compensation corresponding to the salary of nine
19. SIGNATURES OF THE FINANCIAL STATEMENTS
AND THE BOARD OF DIRECTORS’ REPORT
months and the members of the Operative Executive Team are entitled to a
compensation corresponding to the salary of six months if their employment
Vantaa, 24 February 2009
contracts are terminated by notice.
JUH A N IE M E L Ä
M AIJA -RIIT T A O L LI LA
Chaiman of the Board
Vice Chairman of the Board
JO UK O AH T O L A
LE E N A H ARK IM O
company management is not granted option rights.
MIK AE L I N GBE RG
R IIT T A K AIVO SO JA
Other related party transactions
ARI L AH T I
LE E N A P AAN AN E N
Neither the members of the Board of Directors nor the company management
are entitled to extraordinary benefits different from those determined in a
regular employment contract, with the exception of the additional pension
schemes of the CEO and the Executive Vice President 63 years/ 66%. The
Veikkaus may purchase goods or services from other state-owned companies.
The purchasing prices and delivery conditions for the goods and services are
the same as with any other group of customers and they are small in number.
CEO
A report on the audit has been issued today.
18.CONTINGENT LIABILITIES AND
AMOUNTS PAYABLE ON OTHER LEASING AGREEMENTS
Thousand euros
Lease payments due during the next financial year
RIST O N IE M IN E N
2008
2007
259
304
Lease payments due at a later date,
in five years at the maximum
301
296
Other lease liabilities total
561
601
O SM O V AL T O N E N
L ASSE H O L O P AIN EN
Certified Accountant
Most vehicle lease agreements are made for 3 years.
Veikkaus has committed to purchasing 32-50 person years of employment
every year for the purposes of maintenance and development of the gaming
20. LIST OF ACCOUNTING BOOKS AND RECORD FORMATS
system until the end of 2013.
General ledger
in electronic format
Veikkaus had a total of 37,000 euros of guarantor’s liabilities related to the
Journal
staff’s loans from the company’s financial services office on 31 Dec 2008.
Cash accounting and payment transaction records
printed documents
Travel expense claim records
printed documents
Memorandum records
printed documents
Accounts receivable ledger
printed documents
Onnet accounts receivable ledger
printed documents
Accounts payable ledger
printed documents
Payroll accounting records
printed documents
Depreciation records
printed documents
Prize records
87
AUDITORS’ REPORT
TO THE GENERAL MEETING OF VEIKKAUS OY
operations, the accounting principles, and the company management’s
We have audited the accounts, the accounting record and the administration
evaluation applied to the preparation of the financial statement.
of Veikkaus Oy for the financial year from 1 January to 31 December 2008.
The financial statement includes a balance sheet, income statement, cash-flow
The audit has been performed in accordance with the generally accepted audit-
statement, statement on the changes in shareholders’ equity, and notes to the
ing standards complied with in Finland. We believe that the audit evidence we
financial statements.
have obtained is sufficient and appropriate for our opinion of the audit.
BOARD OF DIRECTORS’ AND CEO’S RESPONSIBILITIES
OPINION ON THE COMPANY’S FINANCIAL STATEMENT AND
The Board of Directors and CEO are responsible for preparing the financial state-
BOARD OF DIRECTORS’ REPORT ON OPERATIONS
ment and report on operations, as well as ensuring that the financial statement
In our opinion, the financial statement gives a true and fair view of the com-
provides correct and sufficient information in accordance with the international
pany’s financial position, its financial performance, and cash-flows in accordance
auditing standards (IFRS) as adopted by the EU; and that the financial state-
with the international audit standards (IFRS) as adopted by the EU.
ment and the report on operations provide correct and sufficient information
in accordance with the laws and regulations governing the preparation of a
The report on operations provides correct and sufficient information on the
financial statement and report on operations effective in Finland. The Board of
company’s performance and financial position in accordance with the laws and
Directors is responsible for the appropriate arrangement of the supervision of
regulations governing the preparation of a report on operations effective in
the company’s accounts and finances and the CEO is responsible for ensuring
Finland. The information in the report on operations is in harmony with the infor-
that the accounting procedures are in compliance with the law and the com-
mation in the financial statement.
pany’s finances have been managed in a reliable manner.
The financial statements can be approved, and the members of the Board of
AUDITOR’S RESPONSIBILITIES
Directors and Supervisory Board, and the CEO can be discharged from liability for
The auditor’s responsibility is to perform an audit in accordance with the
the period audited by us. The proposal of the Board of Directors on the distribu-
generally accepted auditing standards complied with in Finland and to express
tion of profit for the year complies with the Finnish Companies Act.
an opinion on the financial statement and report on operations. The generally
accepted auditing standards entail compliance with the ethical principles of the
auditing profession and the planning and performing of the audit in a way which
ensures to a reasonable degree that neither the financial statement nor the report on operations include material misstatements and that the Members of the
OSMO VALTONEN
LASSE HOLOPAINEN
Supervisory Board, the Board of Directors, and the CEO have acted in compliance
Certified Public Accountant
with the Finnish Companies Act.
The audit procedures aim at obtaining evidence that the figures and disclosures
in the financial statement and report on operations are correct. The procedures
selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement in the financial statement, whether due to fraud
or error. Whilst planning the necessary procedures of risk assessment, the
auditor shall also consider the internal control relevant to the preparation and
presentation of the financial statement. In addition, the procedures involve assessing the overall presentation of the financial statement and report on
88
STATEMENT BY THE SUPERVISORY BOARD
The Supervisory Board of Veikkaus Oy has examined the financial statements for the financial year between 1 January 2008 and 31 December 2008 and the Auditors’ report. The
Supervisory Board has decided to propose in its statement to the regular General Meeting
that the income statement and balance sheets be approved and the profit in the financial
statement be used in accordance with the Board of Directors’ proposal. The Supervisory
Board considers it good that the funds in the company’s undistributed prizes’ fund are used
to improve the beneficiaries’ operating conditions in accordance with the Funds Distribution
Act under the present financial circumstances.
The Supervisory Board finds that its decisions and guidelines have been complied with and
that it has received the information it has deemed necessary from the company’s Board of
Directors and CEO.
Helsinki,27February2009
JARI KOSKINEN
Chairman
MATTI SAARINEN
MERIKUKKA FORSIUS
Vice Chairman
JUKKA GUSTAFSSON
TUOMO HÄNNINEN
HELI JÄRVINEN
JARI LEPPÄ
TEIJO LOIKKANEN
HEIKKI A. OLLILA
SIRPA PAATERO
AILA PALONIEMI
JUHA REHULA
KARI UOTILA
ULLA-MAJ WIDEROOS
89
INDEPENDENT ASSURANCE REPORT
(Translation from the Finnish original)
TO THE MANAGEMENT OF VEIKKAUS OY
We have performed the following evidence gathering procedures:
At the request of Veikkaus Oy’s Management we have performed a limited
• Interviewedfour(4)representativesoftopmanagementinordertoacertain
assurance engagement on the Report titled Veikkaus’s year 2008 (the Report)
consisting of the economic, social and environmental information (pp. 1-62)
within reporting period 1.1.-31.12.2008 (Subject Matter).
the current targets for Veikkaus Oy’s corporate responsibility as part of the
business strategy and operations;
• Interviewedpersonsresponsibleforcorporateresponsibilityreporting;
• Wefamiliarizedourselveswiththepolicies,managementandreporting
Management’s responsibility
Veikkaus Oy’s Management is responsible for preparing the Report and collecting and presenting the information within the Report in accordance with the
reporting criteria as set out in Reporting Initiative (GRI) Reporting Guidelines
G3-version together with the company’s own reporting guidelines.
systems and documents relating to information disclosed in the Report;
• Evaluatedthedatamanagementproceduresusedincompilingandreporting
the quantitative data;
• Interviewedthepersonsresponsibleforthepracticesandproceduresused
for data recording and compilation
• Testedtheexistencyofreportedinformationonasamplebasisfromoriginal
Practioner’s responsibility
Our responsibility is to express an independent conclusion on the Subject
Matter based on our limited assurance engagement. We have conducted the
documents;
• EvaluatedthecontentoftheReport,materialityandqualityofreported
information as well as its boundary setting.
engagement in accordance with the assurance engagement standard (ISAE
3000)‘AssuranceEngagamentsOtherthanAuditsorReviewsofHistorical
The assurance of information regarding economic responsibility is based on
Financial Information. ISAE 3000 standard requires that we comply with ethical
audited information obtained from the financial administration.
requirements and plan and perform the assurance engagement to obtain limited
assurance whether any matters come to our attention that causes us to believe
Our conclusion
that the Subject Matter does not, in all material respects, give a balanced and
Based on our work described in this report, nothing has come to our attention
appropriate view of Veikkaus Oy’s corporate responsibility performance based
that causes us to believe that the Subject Matter, in all material respects, based
on the reporting criteria. In a limited assurance engagement the evidence-gath-
on the aforementioned assurance criteria, is not giving a balanced and appropri-
ering procedures are more limited than for a reasonable assurance engagement,
ate view of Veikkaus Oy’s corporate responsibility performance. Our assurance
and therefore less assurance is obtained than in a reasonable assurance en-
report should be read in conjunction with the inherent limitations of accuracy
gagement. We have planned and performed our evidence gathering procedures
and completeness for corporate responsibility information.
to obtain sufficient appropriate evidence on which to base our conclusion.
This independent assurance report should not be used on its own as a basis for
interpreting Veikkaus Oy’s performance in relation to its principles of corporate
responsibility.
Vantaa, 3 March 2009
PricewaterhouseCoopers Oy
90
Annual report 2008
MARKO KORKIAKOSKI
SIRPA JUUTINEN
Partner
Director, Sustainable Business Solutions
GLOSSARY
Beneficiaries receive support for their activities
Identified gaming is accessible to customers using
Payout percentage refers to the amount of the
from Veikkaus funds, distributed by the Finnish Min-
Veikkaus Card or playing registered on the internet
game turnover that is returned to the players as
istry of Education. In practice, all Finns benefit from
at Veikkaus’ website. Also referred to as registered
prizes. The payout percentages vary from one game
Veikkaus funds. All of us win in Veikkaus games
gaming.
to another.
sports facilities, cinemas, theatres, and the Scout
Legal monopoly refers to statutory exclusive
Peluuri helpline is a toll free helpline for people
organization.
right.
worried about or suffering from problem gambling,
Ecological Team is a team consisting of staff
Lotteries Act lays down the rules concerning the
finances the helpline’s activities jointly with the
representatives and an external consultant. It
operation and supervision of lotteries, the account-
other national gaming organizations in Finland.
is in charge of the practical implementation of
ing and use of lottery funds, as well as the control
environmental responsibility and the motivation and
of the allocation of the funds.
when engaging in the activities of, e.g., recreational
as well as for their families and friends. Veikkaus
Request for recommended decision can be
filed by Veikkaus’ players to the Ministry of the Inte-
encouragement of the staff in environmental issues,
National exclusive right is based on the Finnish
rior in unclear situations concerning prize payout. In
lottery legislation, according to which each type of
2008 the Ministry of the Interior processed a total
Ethical Council is an advisory expert organ with
game shall be provided by just one operator. The
of 71 requests for recommended decision.
12 members from outside of the company, set by
exclusive right provides a means to the authorities
Veikkaus’ Board of Directors.
to control gaming and restrict competition. Veikkaus
Responsibility Evaluator Tool is a tool which
has been granted the exclusive right to provide
has been developed jointly by Veikkaus and the
pools and betting games, and lotteries.
Finnish Slot Machine Association RAY. It is used to
as well as the communication of them to the staff.
European Lotteries and Toto Association (EL)
detect and prevent the possible addiction-provoking
is an organization of the European gaming operaNotification The EU Member States’ obligation to
features of the games that might lead to problem
notify the European Commission of new legislation.
gambling.
distribution of funds from lotteries, betting, and
Offerings include Veikkaus’ products and ways
Veikkaus Card is Veikkaus’ customer card. It is free
pools games. The distribution of the funds, as it is
of offering and distributing them through multiple
of charge and personal, and is granted to customers
specified in the Funds Distribution Act, which was
channels to the different customer segments in
over 18 living permanently in Finland.
laid down in 2001, will be introduced gradually by
different situations.
tors in the gaming sector.
Funds Distribution Act is an act on the
Veikkaus funds are funds that Veikkaus returns
the year 2010. The act determines the distribution
of Veikkaus funds as follows: 38.5% of the funds
Official supervisors are persons nominated by
to the Ministry of Education, to be distributed
shall be allocated to arts, 25.0% to sports, 17.5% to
the Ministry of the Interior, who supervise gaming
further to the beneficiaries: arts, sports, science,
science, and 9.0% to youth work. Moreover, 10.0%
activities and confirm the game results and the
and youth work. In 2008 the Ministry of Education
of the funds shall be distributed between the said
number of prizes on each round.
distributed EUR 407.9 million of Veikkaus funds.
beneficiaries as separately specified.
Online point of sales is a retail outlet selling all
World Lottery Association (WLA) is a world-
Gaming licence has been granted to Veikkaus by
the coupon based games, and traditional instant
wide member organization of the national gaming
the Council of State. As the holder of the gaming
tickets. With the help of the online terminal of the
organizations with members in over 70 countries.
licence, Veikkaus has the exclusive right to operate
outlet, the gaming transactions are recorded in
Its mission is to promote safe and controlled gaming
lotteries and pools and betting games by virtue of
Veikkaus’ game system real time.
around the world.
the Lotteries Act. Veikkaus’ present gaming licence
will be effective until 2011.
Annual report 2008
91
JANUARY
Responsible Game Sales Clerk’s ABC guide was published.
FEBRUARY
Line price and prize categories changed in Lotto and jackpots of the minimum of one million euros introduced.
Veikkaus hosted a Green Office networking event.
MARCH
Viking Lotto turned fifteen.
APRIL
Casino eInstant was launched.
JUNE
Veikkaus published its new strategy, operating model, and organization.
JULY
A jackpot hit with a combination played in 2007 was left unclaimed. The unclaimed prize was transferred to the
prize fund in whole.
AUGUST
Sizeable prize amounts were drawn in an additional draw of Casino Instant to celebrate the Olympic Games.
SEPTEMBER
The e-learning programme Responsibility Net was introduced to the staff.
The theme instant associated with the Finnish film Kummeli was launched.
OCTOBER
Veikkaus’ betting games celebrated their 15th anniversary.
The payout percentages of Result Odds Betting and Winner Odds Betting were raised.
NOVEMBER
The last stage of the new game system was implemented.
A record-high Lotto jackpot of EUR 6.5 million was shared by two winners.
DECEMBER
Medals Game was withdrawn from Veikkaus’ game selection.
92
Annual report 2008
DEAR READER,
You are reading the corporate responsibility and annual report
of Veikkaus, the Finnish National Lottery.
Veikkaus is a Finnish lottery for Finnish players. We provide
high-quality gaming entertainment in a reliable and responsible way.
Veikkaus attained one of the best results of its history in
2008, measured against all the key indicators. Our financial
success benefits all Finns.
In 2008 Veikkaus generated a total of EUR 407.9 million of
funds for the Finnish arts, sports, science, and youth work.
Veikkaus funds were distributed to some 2 350 beneficiaries
operating in the field of the arts; 650 operators in the field of
sports; 70 operators in science; and 450 operators in youth
work in 2008.
The tens of thousands of sales agents selling Veikkaus
games are the most prominent part of Veikkaus’ operations
to our customers. Veikkaus’ year 2008 presents a couple of
our points of sales and sales agents from different parts of
the country. Every sales agent and point of sales have their
CONTACTS
own stories; yet all of them are united by Veikkaus and the
Finnish customers.
A FINN TO WIN!
Veikkaus Oy
Veikkaus’ annual and corporate responsibility report is published
TH E AN N UAL R E P O RT WAS E D ITE D BY:
L AY O UT A N D PICT UR E DESIGN :
in Finnish and English. The report can also be read in Swedish at
Veikkaus’ Communications in cooperation with Spokesman Oy
Spokesman Oy
our website www.veikkaus.fi /yritys.
and PricewaterhouseCoopers Oy.
Up-to-date information is also available in our newsletter
CO NTAC T IN FO R M ATIO N :
Veikkaus’ eNews. To order the newsletter and the annual
VEIKKAUS OY, THE FINNISH NATIONAL LOTTERY
report, please contact Veikkaus’ Communications:
Karhunkierros 4
PR INTED AT :
tiedotus@veikkaus.fi , or www.veikkaus.fi /yritys.
FI-01640
Libris Oy, 2009
PHOTO S:
Antti Viitala/Sunlight Studios Oy
Vantaa, Finland
Tel. +358 20 750 750
PA PER :
Cover: Arctic Gloss + Munken Polar 300 g
www.veikkaus.fi
Inside pages: Munken Polar 130 g
Pages of the Financial statements: Munken Print White 115 g
T R A N SL AT IO N INTO EN GL ISH:
Marja Heikkinen, TransEarly
The names on the cover are some of the numerous beneficiaries of Veikkaus funds.
Pirkanmaan elokuvakeskus ry, Turun Seudun SETA ry, Lapin Elämystuotanto Oy/Lapin elämysteollisuuden osaamiskeskus, Saamelaiskäräjät, Art Films Production AFP Oy, Suomen valokuvataiteen
& Anarkiaa/Love & Anarchy Ry, Nuoren Voiman Liitto ry, Sanataiteen yhdistys ry, Näkövammaisten Kulttuuripalvelu ry, Proto-Pohjois-Suomen Taideteolliset Suunnittelijat ry, Varsinais-Suomen
Finlands svenska litteraturföreningar rf, Suomen Kuvanveistäjäliitto ry, Tampereen taidemuseo, Joensuun Taiteilijaseura ry, Circus Maximus ry, Uuden taidekäsityön yhdistys ry, Improvisaatioteatteriyhdistys
ja nuorten arkkitehtuurikoulu Arkki ry, Taidemaalariliitto - Målarförbundet ry, Arkkitehtitoimistojen Liitto ATL ry, Suomen Tieteiskirjoittajat ry, Oulun Ooppera ry, Klockriketeatern rf, Suomen Solistiyhdistys ry Kanteleet ry, Pop & Jazz Konservatorion Tuki ry, Tapiolan Kamarikuoro ry - Tapiola Kammarkör rf, Virtuosi di Kuhmo ry, Suomen Käyrätorviklubi ry, Teollisuustaiteen Liitto Ornamo ry, Ålands Slöjd och
ry EBB, Tanssin Liikekieli ry, Suomen Pakolaisapu ry - Findlands Flyktinghjälp rf SPA, Helsingin Taiteilijaseura ry, AV-arkki ry, Turun Taiteilijaseura ry, Rämsöön kyläkerho ry, Maaseudun Sivistysliitto
Suomen Jääkiekkoliitto ry, Liikuntatieteellinen Seura ry, Nuori Suomi ry, Suomen Keilailuliitto - Finlands Bowlingförbund ry, Suomen Uimaopetus- ja Hengenpelastusliitto ry, Sukeltajaliitto ry,
Bandyförbund ry, Suomen Lentopalloliitto ry, Suomen Painiliitto ry, Suomen Palloliitto ry, Suomen Taitoluisteluliitto ry, Epilepsialiitto - Epilepsiförbundet ry, Suomen Latu ry, Suomen Reumaliitto ry, Suomen
Non Fighting Generation ry, Suomen Kansainvälisen Senioritanssin Liitto ry, Suomen Mielenterveysseura ry, Suomen Paralympiakomitea ry, Ahveniston Vesipedot ry, Koululiikuntaliitto KLL ry,
Finlands Svenska Idrott CIF rf, Judon Tuki ry, Suomen Käsipalloliitto ry, Suomen Olympiakomitea ry, Liikuntatieteellinen Seura ry, Urheiluopistojen yhdistys ry, Finlands Svenska Ungdomsförbund rf, Kansainvälinen
Opiskelevien Keskusliitto SAKKI ry, Suomen Lukiolaisten Liitto ry, Suomen Partiolaiset - Finlands Scouter ry, Eläinsuojeluliitto Animalia ry, Mannerheimin Lastensuojeluliitto ry, Suomen Punainen
Purjelaivasäätiö, Takaisin Elämään ry, Kesälukioseura ry, Suomen Katutanssiliitto ry, Nuorisotutkimusseura ry, Romano Missio ry, Suomen Lasten Parlamentti yhdistys ry, Svenska litteratursällskapet i Finland
Suomen kulttuuri- ja tiedeinstituutit ry, Helsingin yliopisto, Kansallisarkisto, Edistyksellinen tiedeliitto ry, Suomen Historiallinen Seura ry, Suomen Humanistiliitto ry, Työväenperinne - Arbetartradition ry,
museon säätiö, Åke Lindman Film-Production Oy, Joensuun
Aikuiskoulutussäätiö, Kirjailijayhdistys Paltta ry, Suomen
Stella Polaris ry, Runoviikko ry, Nukketeatteriyhdistys Akseli
Finlands Solistförening rf, Lieksan Vaskiviikon kannatusyhdistys ry,
Konsthantverk r.f., Kangasalan Kansantanssijat ry, Pohjoinen
ry, Ympäristötaiteen yhdistys YTY ry, Pargas Idrotts- och
Suomen Biljardiliitto ry, Suomen Ampumahiihtoliitto ry,
Valmentajat ry, Suomen Petanque-Liitto SP-L ry, Suomen
Tapanilan Erä ry, Työterveyslaitos, Suomen Ratsastajainliitto
Vapaaehtoistyö ry, Luonto-Liitto ry, Nuorten Kuoroliitto ry,
Risti, Linnanmäen sirkuskoulun kannatusyhdistys ry, Suomen
rf, Väestöliitto ry, Suomalaisen Kirjallisuuden Seura ry, Väestöliitto
Tulevaisuuden tutkimuksen seura ry, Tiedekeskus Heureka,
Popmuusikot ry, Helsinki International Film Festival - Rakkautta
kääntäjien ja tulkkien liitto ry, Galleristit - Galleristerna ry,
Klonk ry, Ilmaisuverstas ry, Valokuvataiteilijoiden liitto ry, Lasten
Imatra Big Band Festival ry, Teatteriyhdistys Takomo ry, Finnvalokuvakeskus ry - Nordliga fotocentret ry, Espoo Big Band
Ungdomsgård Ab, Stadion-säätiö, Suomen Koripalloliitto ry,
Suomen Curlingliitto ry, Suomen Jääpalloliitto - Finlands
Veteraaniurheiluliitto ry, Suomen Invalidien Urheiluliitto ry,
ry, Koululiikuntaliitto KLL ry, Näkövammaisten Keskusliitto ry,
Suomen Aistivammaiskoulujen Oppilasliitto ry, Suomen Ammattiin
Nuorisoyhteistyö - Allianssi ry, Föreningen Luckan rf, Suomen
ry, Svenska folkskolans vänner rf/Svenska studiecentralen,
Suomen kirjastoseura ry, Tietoasiantuntijat ry, Tutkijaliitto ry
A FINN TO WIN.
CORPORATE RESPONSIBILITY REPORT
ANNUAL REPORT

VEIKKAUS` YEAR 2008

Transcription

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