VEIKKAUS` YEAR 2007

VEIKKAUS’ YEAR 2007
A FINN TO WIN.
VEIKKAUS’ YEAR 2007
ANNUAL REPORT
CORPORATE RESPONSIBILITY REPORT
DEAR READER,
Veikkaus games have offered dreams, entertainment and benefit to Finns for
nearly seventy years. Veikkaus is involved in the lives of almost all grown-up
Finns. There are few people in Finland who would not have sometimes staked a
couple of euros for their dreams or for a sports team they support.
Veikkaus’ activities and existence are based on responsibility. In this report, we
will tell you not only about the events and the financial development of Veikkaus’
year 2007, but also – and above all – about our social responsibility in Finnish
society. The report will also cover Veikkaus’ economic and environmental responsibility. We have drafted the report especially for our stakeholders, and it includes
a broad description of our business operations.
Veikkaus provides gaming entertainment to Finns, operated in a reliable and responsible manner. We had another successful year in 2007, which benefited every
Finn. Our proceeds are vital for Finnish arts, sports, science, and youth work.
Every Finn is a winner, whether they play our games or not. In 2007, Veikkaus
focused on developing its customer relations. You can read about people who
have won different prizes in Veikkaus games in this report.
The structure of this year’s report is very much like that of the report of 2006.
Structure-wise, Veikkaus follows the recommendations of the Global Reporting
Initiative for the third year. Thus, the contents and reporting principles of this
report comply with the recommendations of the international Global Reporting
Initiative (GRI 3). At the end of the report, there is a table of comparison on the
topics covered in this report and the GRI recommendations. The compliance with
the recommendations was verified by Proventia Solutions Oy.
You can also find our contact information at the end of the report.
Veikkaus Oy
Annual report 2007
1
CONTENTS
Key indicators ..................................................................................................... 3
Mission, vision and values .................................................................................... 4
CEO’s review ....................................................................................................... 6
CUSTOMERS
Responsible gaming at our customers’ terms ..................................................... 9
Veikkaus makes significant investments in its retail network ............................ 11
Veikkaus’ website growing more popular ......................................................... 13
CORPORATE RESPONSIBILIT Y
Gaming as part of society ............................................................................... 15
Veikkaus’ social responsibility programme and key indicators ............................ 16
Veikkaus’ core stakeholders ............................................................................ 18
Veikkaus’ activities recognized in different studies ......................................... 20
SOCIAL RESPONSIBILIT Y
Social responsibility provides the basis for Veikkaus’ operations........................ 23
Gaming organizations finance research into problem gambling........................... 26
Significant benefit to society from gaming ...................................................... 28
Reliable and open communications .................................................................. 29
Contented employees guarantee success, key personnel indicators ................... 30
ENVIRONMENTAL RESPONSIBILIT Y
Environmental responsibility natural part of operations .................................... 35
ECONOMIC RESPONSIBILIT Y
Economic responsibility obliges ...................................................................... 41
Secure gaming environment beneficial to all ................................................... 44
International operating environment .............................................................. 46
Veikkaus games ............................................................................................. 48
Governance ...................................................................................................... 50
Organisation ..................................................................................................... 53
Board of Directors ............................................................................................. 54
Executive Team ................................................................................................. 56
FINANCIAL STATEMENT 2007
Board of Directors’ report .............................................................................. 58
Income statement ......................................................................................... 62
Balance sheets .............................................................................................. 63
Cash-flow statement ..................................................................................... 64
Changes in shareholders’ equity...................................................................... 65
Accounting principles .................................................................................... 66
Notes to the financial statements ................................................................... 69
Auditors’ report ............................................................................................. 78
Statement by the Supervisory Board ............................................................... 78
Comparison with the GRI recommendations ......................................................... 79
Veikkaus year 2007 ........................................................................................... 82
Glossary ........................................................................................................... 83
Contacts .......................................................................................................... 84
2
Annual report 2007
KEY INDICATORS
DEVELOPMENT OF TURNOVER
EUR MILLION
1,159 1,261 1,316 1,361 1,391
1,400
1,200
2007
2006
EUR million
EUR million
Turnover
1,361.2
+2.2
Gross margin on sales
508.1
489.6
+3.8
Operating profit
421.1
403.3
+4.4
Profit before appropriations
427.4
407.7
+4.8
Financial result
427.4
407.7
+4.8
31 Dec 2007
1,000
Number of employees
Number of POS
800
Change in %
1,391.4
Registered customers
31 Dec 2006
370
373
-0.8
3,114
3,569
-12.2
612,326
440,850
+38.9
600
400
200
BREAKDOWN OF VEIKK AUS EURO
DISTRIBUTION OF VEIKK AUS FUNDS
2007
2007
0
2003 2004 2005 2006 2007
DEVELOPMENT OF
FINANCIAL RESULT
EUR MILLION
376 398 401 408 427
500
Change from 2006
PRIZE PAYOUT
400
300
51.2 cents
-0.7%
LOTTERY TAX
4.7 cents
2.2%
RETAIL COMMISSIONS
5.6 cents
-5.1%
OPERATING EXPENSES
7.8 cents
ARTS
46.5%
including LIBRARIES 9.2%
EUR 184.4 million
EUR 36.5 million
SPORTS
25.2%
EUR 100.2 million
SCIENCE
19.3%
EUR 76.6 million
9.1%
EUR 36.1 million
-2.5%
YOUTH WORK
ARTS
200
100
0
2003 2004 2005 2006 2007
13.3 cents
-1.5%
SPORTS
7.2 cents
4.3%
SCIENCE
5.5 cents
0%
YOUTH WORK
2.6 cents
4.0%
UNDISTRIBUTED
PRIZE FUNDS
2.1 cents
40.0%
Annual report 2007
3
MISSION
A FINN TO WIN
VISION
VEIKKAUS IS A PIONEER
Veikkaus generates versatile value to Finnish society
by operating games reliably and responsibly.
Veikkaus will be the world’s leading state lottery in terms of customerfocus, 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 must report 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
We want our games, services, and the way we operate reflect creativity
and joy. We also encourage our staff to be innovative.
4
Annual report 2007
VEIKKAUS’ BUSINESS
STRATEGY
THE CORNERSTONES OF VEIKKAUS’ BUSI-
Veikkaus returns the bulk of its operating profit
NESS STRATEGY ARE OPERATING ENVIRON-
to Finnish society, to be distributed to various or-
MENT STRATEGY AND CUSTOMER STRATEGY.
ganisations in the fields of arts, sports, science and
youth work in a way that benefits all Finns.
Social responsibility is a natural part of Veikkaus’
operations. It entails responsibility for the environ-
Veikkaus operates on the leisure and experience
ment, the customers, and the staff. It also means
market. We offer our customers a chance to win
good corporate governance, workplace equality, as
money as a significant additional value, as well as
well as ethically sustainable business operations.
very important social benefits.
Veikkaus develops its offerings in an ethically
Customers are at the core of Veikkaus’ busi-
sustainable way. Our games are based on wide
ness operations. Our objective is to diversify our
participation and small stakes.
offerings to meet our customers’ different needs.
Veikkaus operates its games reliably and
Our customer strategy is based on the ability
responsibly. This is ensured by strict supervision by
to offer our customers unique value which provides
authorities and our own measures to control and
the basis of long-term customer relations.
restrict gaming.
We want to be present in places and situations
where people dream, spend their free time, and
attend or take part in sports events.
Annual report 2007
5
CEO’S
REVIEW
Veikkaus operates for the common good,
responsibly, reliably, and creatively. The grounds
and substance of these values are steady. Veikkaus’
proceeds are, indeed, used to benefit all Finns. We
attained a financial result of over EUR 427 million
in 2007, which entails well over one million euros a
day to Finnish arts, sports, science, and youth work.
Every Finn benefits from Veikkaus funds in their
daily lives. Besides generating profit, Veikkaus pays
annually around EUR 80 million of lottery tax and
value added tax to the Finnish State.
However, these financial figures represent just a
fragment of Veikkaus’ real results. Another result,
at least as important as the financial success, is
the responsibility of Veikkaus’ operations, which
generates significant advantage to all Finns. Channelling the demand to controlled gaming – through
good and responsible marketing, and products
and distribution channels suited especially to us
6
Annual report 2007
Finns – together with the restrictions imposed by
Veikkaus itself, are an effective way to prevent the
detriments that may be involved in gaming. Games
need to be organized and supplied in a controlled
and regulated way, and managed by society.
Consumers trust Veikkaus to be responsible. A
survey conducted by the Finnish market research
house Taloustutkimus showed that the majority of
Finns (67%) regard Veikkaus as more responsible
than foreign gaming operators. Over eight out of
ten Finns considered the exclusive right system
applied to gaming good. Nearly all respondents
(97%) thought it was important or very important
that Veikkaus funds are channelled to the benefit
of society. Most respondents were also happy with
the age limits Veikkaus has introduced.
Corporate responsibility does, in fact, guide all
Veikkaus’ activities. It covers responsible gaming,
the financial profit we generate to society, environmental responsibility and, naturally, responsibility
for our own staff. Corporate responsibility can also
be seen in Veikkaus’ product development and
marketing. For example, we have recently updated
the tools for self-management of gaming at our
website. The new tools enable our players to
impose restrictions on their own gaming. Further,
we have drafted an environmental programme for
our head office. At the end of the year under review,
Veikkaus was awarded a diploma by WWF Finland
and the right to use the Green Office label.
The member lotteries of the World Lottery
Association (WLA) approved joint Responsible
Gaming Principles in February 2006. In 2007, the
members carried out an evaluation of their level of
responsibility. Veikkaus ranked in the top category.
The member lotteries of European Lotteries (EL)
signed the association’s Responsible Gaming
Standards in May. At the same time, they approved
the EL Sports Betting Code of Conduct. It had
been prepared jointly by Veikkaus and La Française
de Jeux. The Nordic lotteries also reinforced their
cooperation in the field of responsible gaming.
The state lotteries of Denmark, Finland, Iceland,
Norway, and Sweden established a special Nordic
CSR working group.
of the task of lottery corporations arises from the
Placanica decision made by the European Court of
Justice where the exclusive right system applied to
gaming was, once again, clearly justified and supported. This has been the case with each decision
made by the European Court of Justice concerning
the exclusive right applied to gaming in the past
ten years.
Our genuinely responsible way of operating will
be even more important in the future. The rapid
development in the field of information technology enables more and more entertaining forms of
gaming, and more and more private enterprisers are
showing interest towards gaming profits. At the
same time, there is a growing concern about the
problems arising from gaming. All over the world,
gaming is strongly regulated. Essentially, it is the
exclusive right system that has been proved to be
the most effective and just in the attempt to limit
gaming and channel the demand for games towards
responsible offerings.
For the European Union, defining sports betting in
accordance with court proceedings may not necessarily result in sensible development. Finland has
managed to create an active and positive connection to the European Commission’s Internal Market
Directorate-General, aiming at a rational solution
that would secure the member states’ interests in a
comprehensive manner. The discussions concerning
this issue are complex and demand patience, but
they are of utmost importance.
In Finland, gaming is organized in an exemplary
manner from the point of view of responsibility,
effectiveness, and productivity. Yet, it is necessary
to update our lottery legislation. Changes in the
operating environment and customer behaviour
require clear and timely amendments to the law,
in order that the important exclusive right system
could be reinforced. Thus, the Finnish government
policy stresses that measures must be taken to
restrict the detriments of gaming and to preserve
the exclusive right system.
The European Commission continued the
infringement procedure it had started on the basis
of the complaints filed by a number of international
private bookmakers in the previous year. Finland, together with certain other member states, was sent
a Reasoned Opinion by the Commission, concerning
sports betting, in March. The Finnish State sent its
response to the Commission in May. The next stage
in the process will be either that the Commission
ends the procedure or decides to submit it to the
European Court of Justice.
A lottery corporation that has been granted the
exclusive right to operate games needs to offer a
reliable, yet attractive alternative to the consumers. This can only be done by making a wide variety
of games based on modern technology available
to the customers, and advertising and marketing
them to an appropriate degree. This description
When it comes to the use of customer data,
Veikkaus ranks among the best companies in
Finland. The customer-oriented strategy, adopted
in 2004, now covers our entire organization. In
autumn 2007, we were granted the “Recognised for
Excellence in Europe” prize in the large companies’
series of the Finnish Excellence Awards competition. We were praised especially for our way of collecting, analysing, and using customer data. It was
stated in the justifications for the recognition that
Veikkaus recognizes and understands its customers
throughout its organization.
More and more Veikkaus’ customers have
adopted the habit of playing identified. These
Veikkaus’ customers have either obtained a
Veikkaus Card or registered as our players on the
net. Veikkaus Card was introduced in autumn 2006.
In the course of the year 2007, the number of the
card holders increased quickly, and they numbered
nearly 300 000 at the end of the year. We have currently over 600 000 customers who play identified.
At the end of 2007, identified playing represented
28 percent of our total sales. Identified playing
is especially significant from the point of view of
strong and loyal customer relations. Identified playing also helps us to prevent the problems that may
be related to gaming.
tion to the new game system will be completed in
autumn 2008.
During its 67th year of operations,
Veikkaus attained a turnover of EUR 1 391.4 million
(+2.2%). Our financial result amounted to EUR
427.4 million (+4.8%), out of which we returned
EUR 397.7 million to the Ministry of Education in
accordance with the State Budget, to be distributed further to Finnish arts, sports, science, and
youth work. Our financial result has been on steady
increase in the past five years.
We paid out a total of EUR 713.0 million of prizes
to the players. The expenses of product advertisement totalled EUR 9.9 million, i.e. around 0.7% of
the total turnover. Retail commissions represented
5.6% of our turnover, i.e. EUR 78.4 million. Further,
Veikkaus paid EUR 64.8 million of lottery tax and
EUR 18.1 million of VAT to the State in addition to
the budgeted return of its profits to the Ministry of
Education (EUR 397.7 million).
In accordance with its vision, Veikkaus will be the
leading lottery in the world in terms of customer
orientation, know-how, and effectiveness in 2010.
The comparative data available show already that
we rank in the top with regard to many essential
standards. Veikkaus is constantly improving its ways
of operating and is – as it would be said in sports –
in top form.
Ever since Veikkaus was founded, we have been
returning the bulk of our proceeds to society and
attained our results in a responsible manner. I know
that every member of Veikkaus’ staff is proud to be
involved in the generation of versatile value to Finnish society. Thank you for your outstanding attitude
and great job!
For the remarkable and successful year,
I would, of course, also like to thank all our customers and partners in cooperation!
Risto Nieminen
Veikkaus’ biggest investment ever, setting up the
new game system, was continued last year according
to the original schedule for the third year in a row,
as all of the online terminals at our 3 100 points of
sales were replaced with new ones. The transi-
Annual report 2007
7
RESPONSIBLE GAMING
AT OUR CUSTOMERS’ TERMS
Veikkaus’ activities are guided by customer-orientation 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. Identified playing guarantees a secure collection of winnings and
gives the players a chance to follow their gaming history on the web.
Veikkaus Card, which was launched in autumn 2006, has been strongly increasing its popularity. At the end of 2007, there were as many as 280 000 Veikkaus
Card holders. Veikkaus Card replaces the Winnings to Bank Account slip, which
has been in use since 1990 and which will be withdrawn in the course of 2008.
”You can enjoy a
Veikkaus Experience by
using a Veikkaus Card,
dropping by at one of
our points of sales, taking
a look at our website,
skimming through our
customer magazine, calling our customer service,
or taking part in one of
our campaigns.”
Customers
9
Veikkaus has been building its customer strategy
since 2004. The concrete work we have done to
materialize the strategy was praised in the autumn,
when we were granted a recognition award in the
Finnish Excellence Award competition. The recognition was justified by our strong results in terms
of customer relations and other core performance
indicators. We were also praised for the way we pay
attention to our customers and analyze the customer data we collect. It was stated in the competition
report that Veikkaus recognizes and understands its
customers throughout the organization.
IDENTIFIED PLAYING
BECOMING MORE POPULAR
Veikkaus’ customers can play identified by showing
their Veikkaus Cards at our points of sales, logging
into our internet gaming service, or by using their mobile phones to play. By opting for identified gaming,
our customers can make sure that they have access
to better services when it comes to, e.g., customer
communications, following their own gaming history,
and secure payout of the possible prizes.
By analyzing the data obtained through identified
gaming we can develop our products and services
to better meet our customers’ needs. That way, we
can guarantee that the right products are provided
to the right people in the right place and at the right
time.
Our customers have been happy to welcome
identified gaming and the related services. At the
end of 2007 we had a total of 612 326 (+38%) of
Veikkaus Card holders and registered internet players. Identified playing represented around 28% of
our total sales at the end of the year.
The protection of privacy and information security
have been some of Veikkaus’ traditional core concerns. In 2007, Veikkaus’ information security practices were updated to correspond to the reformed
models of operation. The practices are developed in
cooperation with the Office of the Data Protection
Ombudsman.
SHARE OF IDENTIFIED GAMING
OF TURNOVER
”By the end of 2007 we
had 75 winners of the
Golden Tickets.”
CUSTOMER BENEFITS AVAILABLE TO ALL
Veikkaus Card’s most apparent customer benefits
include smooth and secure prize payout directly
into the customers’ wallets and free subscription of
Veikkaus’ customer magazine. We also launched a
customer benefit programme in the spring, offering
both our customers and game sales clerks an opportunity to win invitations to different customer
events. To have access to the benefits, you do not
need to play. The different customer benefits we
have offered have ranged from winning Golden
Tickets to VIP occasions to free admission to
various events. The customer benefits have been
related to the various beneficiaries of Veikkaus
funds, especially to those in the fields of sports and
arts. The benefits programme is developed as we
gain more experience about the popularity of the
events, and it is primarily aimed at motivating our
customers to identified gaming.
2007
VEIKKAUS CARDS IN 2007
300,000
250,000
200,000
150,000
VEIKKAUS' INTERNET GAMING SERVICE
VEIKKAUS CARD
UNIDENTIFIED GAMING
WINNINGS TO BANK ACCOUNT SLIP
17.6%
5.4%
10.2%
(average)
10
Customers
100,000
66.8%
50,000
January
February
March
April
May
June
July
August
September October
November December
VEIKKAUS MAKES SIGNIFICANT INVESTMENTS IN ITS RETAIL NETWORK
The majority of Veikkaus’ sales, 82%, come from our
ments arising from different needs for services. For
retail outlets that totalled over 3 100 around the
example, the estimates for sparsely populated and
country at the end of 2007. In the course of the
outlying areas, hospitals and various institutions,
year, we invested in our retail sales by providing the
are significantly different from those of larger busi-
points of sales with new, modern online terminals
ness centres. Veikkaus currently has around 250
and data communication connections. We also paid
service retail outlets to make sure that our services
special attention to retail outlet design, retailer
are also accessible where it would not, in fact, be
training, and sales support material.
lucrative to have a point of sales.
The reform of the online terminals, which covers
Kiosks and convenience stores remain the most
Veikkaus’ entire sales network, has to do with the
popular outlet type. Following the general overall
game system reform started in 2005, during which
trend towards centralisation in trade, grocery stores
the whole game system together with its support
have also increased their popularity. Veikkaus works
systems will be brought up-to-date. The reform
in cooperation with different Finnish trade chains,
is the biggest one-time investment in Veikkaus’
e.g., Rautakirja, the K-Group, and the S-Group. The
history. The new game terminals introduced at the
cooperation enables effective and conceptualized
beginning of the year are the most clearly visible
operations along with nation-wide marketing.
part of the investment. The new game system
reform will be completed in the course of 2008.
Veikkaus pays its retailers an average sales commission of 6.8%. In 2007 the retail commissions
SALES NETWORK
POINTS OF SALES 31 DEC 2007
ENTIRE
FINLAND:
3,114
EASTERN AND
NORTHERN
FINLAND:
843
WESTERN
FINLAND:
1,137
amounted to a total of EUR 78.4 million.
COVERS ENTIRE FINLAND
Previously, Veikkaus had two types of points of
SALES STAFF’S KNOW-HOW IMPORTANT
sales: online retail outlets and retail outlets selling
Veikkaus’ points of sales employ over 15 000 game
nothing but instant lotteries. Along with the termi-
sales clerks, who have a central role in Veikkaus’
nal reform, the contracts of the c. 650 instant-ticket
customer encounters. Veikkaus takes care of the
selling retail outlets were terminated, since it was
sales clerks’ professional skills by offering them
neither economically nor service-wise reasonable
initiation and advanced courses in game sales.
SOUTHERN
FINLAND:
1,134
to maintain two parallel systems. The best former
instant ticket retailers, totalling around 150, were
Veikkaus’ sales training staff organized a total of
awarded the right to sell online games in the spring
621 training events during the year under review,
of 2007. At the same time, a further one hundred
and nearly 8 800 game sales clerks took part in
new points of sales were established.
them. The introduction of the new terminals added
considerably to the need for training: at the begin-
The current sales network covers the need for
ning of the year, we offered 315 training events
Veikkaus’ services in the entire country. Our retailer
on the use of the new terminals, each event lasting
policy is strongly business-oriented. Each point of
two hours. In all, 4 930 game sales clerks attended
sales has a specific sales estimate which it has to
the training. The Veikkaus Cruise, organized in the
• Promoting identified playing.
attain to ensure that it can continue as Veikkaus’
autumn, attracted nearly one thousand sales clerks.
• Uniform Veikkaus design to cover at least
retailer. The estimates are based on the location
CORE OBJECTIVES 2008
2 400 points of sales by the end of the year.
of the point of sales and the coverage require-
Customers
11
SALES PER
OUTLET T YPE
2007
In addition to knowledge on games and selling, the
RETAILERS HAPPY WITH VEIKKAUS
training events also offer the sales staff informa-
The retailers are happy with Veikkaus, our way of
tion on responsible gaming, e.g., issues related
operating, and our services. In a survey conducted
to age limits and problem gambling. Responsible
in the summer, the people in charge of game sales
gaming is regularly dealt with in Veikkaus’ retailer
gave Veikkaus a total grade of 3.63 (on a scale from
magazine. It is also in focus in 2008: we will distrib-
1 to 5), which means that we were considered good
ute a Responsible Game Sales Clerks Guide to all our
or very good. The survey was carried out by TNS
game sales clerks. We will also be investing in age
Gallup.
limit controls.
The retailers are happy with the services Veikkaus
KIOSKS AND CONVENIENCE STORES
43.9%
ENHANCED SERVICE
provides them at the points of sales. We were also
INTERNET SALES
18.1%
TO SUPPORT GAME SALES
praised for the maintenance service, online support,
LARGE GROCERY STORES
17.1%
Veikkaus is in charge of the maintenance of its
sales service, and free marketing tools we have
SERVICE STATIONS
11.7%
online terminals and data connections. When faced
been offering our retailers. Our other services that
SMALL GROCERY STORES
3.7%
with a problematic situation, the sales clerks can
were cited as especially satisfactory were retailer
CAFÉS, RESTAURANTS
3.0%
call a special helpline, which offers them advice and
training, Veikkaus Card, our service-minded sales
OTHER
2.5%
support every day. Veikkaus also provides its retail-
staff, and smooth monetary transactions.
ers with materials, tools for sales promotion, pointof-sales equipment, info leaflets, and a professional
The survey also showed that Veikkaus’ retailers
RETAIL COMMISSIONS
retailer magazine to support the game sales.
are in favour of the preservation of the exclusive
EUR MILLION
right of gaming. They think that the exclusive right
In the past few years, Veikkaus has turned its sales
should be preserved, since a system with multiple
network into one of its primary channels of market-
operators would be difficult to manage. Further,
ing. At the same time, we have paid special atten-
the exclusive right is justified by the fact that the
tion to the point-of-sales design and functionality
present system enables the money to be used
of the equipment. The point-of-sales reform, which
within our own jurisdiction and for the good causes.
was started in 2006 and aims at a uniform design
Veikkaus games generate significant additional
in line with Veikkaus’ brand, is still underway: in the
value to the points of sales: half of the respondents
year under review, we updated the design of nearly
said the games brought more customers, whereas
1 500 points of sales.
one fifth of them considered that the greatest
90
77
81
81
80
78
80
70
60
50
advantage arising from Veikkaus games was that
At the end of the year we tested a new type of
they boosted sales.
40
in the test will be used whilst developing the equip-
The retailers’ views are important for Veikkaus. In
30
ment in the next few years. Our objective is to make
addition to the surveys, we organized a twenty-
all of our points of sales part of the uniform design
member Sales Clerks’ Council in the autumn, set to
in the next few years.
collect feedback and opinions on, e.g., sales support
point-of sales equipment. The experiences gained
tools and marketing campaigns.
20
10
0
2003 2004 2005 2006 2007
12
Customers
VEIKKAUS’ WEBSITE GROWING MORE POPULAR
More and more Finns play Veikkaus games on the
Since Veikkaus only offers internet gaming to
web, although the majority of our customers still
Finnish residents, we verify the identities of people
go to a retail outlet to play. Veikkaus’ web service
registering as our players with the Finnish Popula-
www.veikkaus.fi ranks among the largest web
tion Register Center. Our internet games are only
stores in Finland, with an annual turnover of EUR
available to customers of 18 years or older.
251.8 million. The games can also be played via
Every month, around 225 000 Finns play through
wap, and some of them by sms.
Veikkaus’ internet gaming service, and their number
According to a survey made by the Finnish market
is on steady increase. All in all, we registered around
research house Taloustutkimus in the autumn
88 million gaming transactions on the net. The
of 2007, the users of Veikkaus’ internet gaming
most popular games on the net are sports games,
service www.veikkaus.fi regarded the service as
but Lotto and Keno are also in favour.
VEIKKAUS CLOSELY
INVOLVED IN DIFFERENT
HAPPENINGS
In the year under review, Veikkaus was present
in many happenings where Finns dreamt their
dreams and spent their free time, including the
Nordic Travel Fair Matka, the Finnish Housing
Fair, Ruisrock rock festival, and Pori Jazz. We
were also involved in many of the events associated with the Eurovision Song Contest.
very good. The web service increased its sales by
22.8% over the previous year, representing 18.1%
Internet gaming has been constantly increasing its
of Veikkaus’ total turnover (+3%). We had around
popularity; in December 2007, we attained a record
Veikkaus continued its cooperation projects in
378 000 customers on the web in 2007.
of weekly sales, EUR 6.1 million, which represented
the fields of television and entertainment, in-
around 20.4% of Veikkaus’ total sales for that week.
cluding the Deal or No Deal quiz; the Christmas
WEBSITE CONTENTS
Calendar show; as well as the Masters and their
REFORMED IN MANY WAYS
Heirs and the Offseason show. Our TV coop-
The contents of Veikkaus’ website were updated in
eration was strongly associated with either our
2007 to better meet our customers’ needs. A new
beneficiaries or the world of gaming.
section titled ”My Veikkaus” was introduced, where
the users can, e.g., order a Veikkaus Card, follow
their own gaming transactions and, if necessary,
make their gaming subject to daily, weekly and
monthly limits. We also allocated a special section
TURNOVER OF
INTERNET GAMING
to entertainment on our website.
EUR MILLION
73
111 160 205 252
250
200
Turnover of internet gaming per game groups 2007
150
EUR million
Share in %
Change in %
101.0
40.1
7.2
Lotto games
57.3
22.7
27.2
Other sports games
24.3
9.7
32.5
Betting games
Other games
Total
69.3
27.5
46.0
251.8
100.0
22.8
100
50
0
2003 2004 2005 2006 2007
Customers
13
GAMING AS PART OF SOCIETY
The Finnish gaming system is based on the ideology of responsibility. The
exclusive right provides a means by which the authorities can manage gaming
and competition which would lead to an aggressive manipulation of players, if it
was left uncontrolled. Veikkaus’ mission is to generate versatile value to Finnish
society by organizing games reliably and responsibly. We meet the demand for
games in accordance with our national gaming tradition in an ethically planned,
”According to a recent
survey, 97% of Finns say
it is important or very
important that Veikkaus
funds are returned to
Finnish society.”
rationally and naturally regulated manner. Gaming is fun and entertaining, as long
as it stays reasonable and proportionate with regard to the players’ own wallets.
The cornerstone of Veikkaus’ corporate social responsibility is, above all, our great
social responsibility towards the players, beneficiaries, and staff. For us responsibility means, e.g., that we want to ensure a safe gaming environment to our players. In 2007 Veikkaus’ CSR activities focused especially on the internet players’
chances to control their own gaming.
SOCIAL DETRIMENTS OF GAMING INVESTIGATED
A total of EUR 3.1 million was used to promote responsible gaming in 2007. The amount included
all the measures with which Veikkaus promoted responsibility and integrity in gaming either in its
own business or in cooperation with its stakeholders, and worked to improve general awareness
about the national gaming system and its significance. In the year under review, Veikkaus paid a
total of EUR 305 000 to the Ministry of Social Affairs and Health to be used for the monitoring and
investigation of the social detriments of gaming. We also financed the operations of the Finnish
Problem Gambling Helpline Peluuri with around EUR 91 000 in 2007.
Corporate responsibility
15
KEY INDICATORS OF SOCIAL RESPONSIBILITY
INDICATORS OF ECONOMIC RESPONSIBILITY
Turnover (EUR million)
Profit from business operations (EUR million)
2007
2006
2005
2004
1,391.4
1,361.2
1,315.8
1,260.8
394.5
421.1
403.3
397.2
Investments (EUR million)
34.8
38.6
22.5
6.7
Prize payout (EUR million)
713.0
701.8
678.7
631.2
15.6
Salaries and wages (EUR million)
17.8
18
16.5
Number of employees (end of the year)
370
373
372
377
3,114
3,569
3,692
3,748
Number of points of sales (end of the year)
Retail commissions (EUR million)
78.4
80.3
80.6
80.8
Lottery tax (EUR million)
64.8
62.9
60.6
60.0
397.7
387.2
381.4
375.8
Contribution to the Ministry of Education (EUR million)
INDICATORS OF SOCIAL RESPONSIBILITY
Work enjoyment (scale 1-5)
3.79
3.87
3.91
3.82
Turnover of personnel (%)
7.7
8.7
10.9
8.0
- newly recruited
27
33
38
34
- gave their notice
11
22
24
19
- retired
10
10
19
7
Average age of employees
42.3
42.2
42.5
42.4
Average length of employment contracts
12.1
12.7
13.1
13.5
Sick leaves (workdays/person)
12
11.4
14.5
12.8
Occupational health care costs
373,143
340,032
398,508
388,059
73,000
70,309
67,149
81,555
3,327
3,157
3,092
2,951
425
658
454 *
413 *
Electricity consumption/ head office (MWh)
4,350
4,090
3,750
3,500
Heat energy consumption/ head office (MWh)
2,559
2,689
2,785
2,791
Water consumption/ head office (m3)
4,300
5,500
4,000
4,100
Recreational and employee club activities (EUR)
Average salary (EUR)
Training days / all employees
INDICATORS OF ENVIRONMENTAL RESPONSIBILITY
*
16
figures include only training by the Game Academy
Corporate responsibility
VEIKKAUS’ SOCIAL RESPONSIBILITY PROGRAMME
Veikkaus aims at a wide customer basis playing
Veikkaus’ marketing communications follow
with reasonable stakes so that the amounts indi-
strict ethical guidelines:
vidual customers spend on Veikkaus games would
– Veikkaus’ marketing communications do not
not overly burden their finances. We also aim at
increasing the degree of identified gaming.
give misleading information, nor do they offer
unrealistic ideas about the chances to win.
– In marketing, Veikkaus avoids the idealization of
Veikkaus has imposed restrictions on gaming:
– Gaming is subject to age limits – 15 years at the
points of sales and 18 years in the electronic
channels.
gaming and advertisements encouraging people to
play; and respects the consumers’ individual rights.
– Veikkaus’ marketing communications are not
directed towards consumer groups that are
– Games are not sold on credit.
especially vulnerable in view of their age, social
– Games cannot be played in the night time – not
status, or other special characteristics.
even on the net.
Internet gaming is subject to
Veikkaus bears responsibility for problem
• daily limits of expenditure on instant games
gambling:
• daily and bet-specific limits on Live Betting
– Veikkaus offers information about problem
entries
• daily maximum limits on gaming
• optional maximum balance limit on gaming
accounts.
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 offers tools for self-control of gaming:
– Optional self-ban on gaming for three months
– Optional self-ban on gaming for the rest of the
day
– Optional gaming limit in euros on a daily, weekly,
Problem Gambling Helpline Peluuri and takes part
in its development.
– Veikkaus finances part of the research into gaming detriments carried out by the Finnish Ministry
of Social Affairs and Health.
or monthly level.
Veikkaus aims at fighting crime and working to
Veikkaus makes use of a responsibility assess-
promote measures against money laundering.
ment tool for the ethical evaluation of game ideas
and distribution channels, in order to be able to
Veikkaus bears environmental responsibil-
spot the possible addictive features that may lead
ity in its own activities and requires its partners in
to problem gambling. Ethical evaluation is part of
cooperation do so.
Veikkaus’ product development process.
Veikkaus aims at a moderate and sustained
growth of its profit.
Promoting Veikkaus’ corporate responsibility belongs to every employee and is a natural part
of all our activities and work in practice.
Corporate responsibility
17
WIDE GROUP OF STAKEHOLDERS
Veikkaus boasts an exceptionally wide and versatile
group of stakeholders. Nearly all adult Finns are
Veikkaus’ customers, at least at some stage of their
lives. Whether they play or not, every Finn benefits
from gaming in various everyday connections, in
VEIKKAUS’ CORE STAKEHOLDERS
STAKEHOLDER
STAKEHOLDER EXPECTATIONS
PLAYERS, CUSTOMERS
Interesting, entertaining and reliable gaming entertainment. Fulfilling the
promises of our products and services. Secure and reliable prize payout.
Correct and explicit information on games and gaming.
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 and 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 and the umbrella
organizations EL and WLA
Securing the continuity of the exclusive right system. Promoting
responsible gaming activities. Active cooperation and information exchange,
benchmarking.
EUROPEAN
COMMISSION
Responsible gaming policy. Prevention of social problems and crime.
Channelling gaming to legally accepted games.
BENEFICIARIES
in the fields of arts, sports,
science and youth work.
Proceeds, return of funds. Ensuring the continuity of the system.
Possible forms of marketing cooperation.
PARTNERS IN COOPERATION
and other cooperation organizations
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.
their hobbies and many other activities. Veikkaus
funds are vital to thousands of beneficiary organizations and their employment effects are important.
Veikkaus has a comprehensive network of over
3 100 retailers around the country. From a social
perspective, gaming is associated with enormous economic and social responsibility. In all its
operations, Veikkaus also pays attention to the
environmental issues.
BALANCING BETWEEN
DIFFERENT EXPECTATIONS
Veikkaus manages its stakeholder relations in different ways and on different levels. We comply with
several feedback and follow-up mechanisms, survey
methods and practices, with which we collect feedback from our customers systematically to develop
our game offerings.
When the results of Veikkaus’ corporate responsibility are evaluated, every stakeholder has their own
expectations, which may sometimes even be mutually conflicting. Successful stakeholder relations
require that the different expectations are in good
balance. To evaluate the balance, we carry out extensive research projects. As a responsible gaming
operator Veikkaus aims at an open and interactive
exchange of views with its stakeholders.
18
Corporate responsibility
VEIKKAUS’ MEASURES
STANDARDS
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.
Consumer protection and responsible product development. Financing of research into
problem gambling and Problem Gambling Helpline Peluuri.
Sales development. Changes in consumer behaviour and customer profiles.
Analyses 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. Open 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, 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 evaluation
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 advanced as a cooperative
partner. 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.
Studies by the Ministry of Social Affairs and Health. International comparisons,
statistics and research projects.
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.
Nature of public discussions, daily media follow-up. Number of contacts and
communications. Corporate image and communications surveys.
Contacts and cooperation. Responsible, stable activities.
Environmental load. Number of jobs. Corporate image surveys.
Corporate responsibility
19
VEIKKAUS’ ACTIVITIES RECOGNIZED IN DIFFERENT STUDIES
In the year under review Veikkaus operations were
A major Finnish newspaper Helsingin Sanomat com-
OUTSTANDING CUSTOMER GUIDANCE
measured from many perspectives. Several of the
missioned a survey titled ”Responsible Operator” in
The guidance our customer service offers to both
studies showed that Finns considered Veikkaus
the year under review, exploring Finns’ perceptions
the players and sales staff is followed regularly. In
funds socially significant.
about the way large companies assumed their cor-
autumn 2007 TNS Gallup made a survey to evalu-
porate responsibility. In this survey, Veikkaus came
ate the quality of the guidance. The quality of our
second. The survey was carried out by TNS Gallup.
phone guidance had improved to 79% (2006: 74%).
In terms of corporate responsibility Veikkaus
ranked among the best Finnish companies in many
different studies.
The guidance services we offered electronically
THE QUALITY OF VEIKKAUS
and on the phone were rated as the best of all the
ACTIVITIES PRAISED
services that were evaluated in the course of the
People think in general that Veikkaus manages its
Veikkaus participated in the Finnish Excellence
year.
corporate responsibility very well. This was one of
Awards competition for the first time in the year
the findings of a survey titled Companies and Corpo-
under review. As a first-timer, Veikkaus attained a
VEIKKAUS’ BRAND REINFORCED
rate Social Responsibility, carried out by Marketing
good result in the large companies’ series and was
Veikkaus’ customer loyalty has been evaluated since
Radar in the spring of the year under review. Of all
awarded the “Recognised for Excellence in Europe”
2005, when our customer relations strategy was
the companies involved, Veikkaus was rated as the
recognition prize.
introduced. Veikkaus’ services were recommended
second best company to manage both its corporate
responsibility and social responsibility.
by 32.1% of Finns in 2007 (2006: 29.9%; 2005:
The assessment team of the competition evaluated
28.1%). The qualities associated with Veikkaus’
Veikkaus’ strategy, values, and objectives. Veikkaus
brand – offering experiences, responsible, entertain-
Veikkaus commissioned a survey on corporate social
was praised, e.g., for its way of paying attention to
ing, high-quality, reliable, and socially valuable – im-
responsibility in the summer, set out to investi-
and analysing information associated with customer
proved over the previous years in the respondents’
gate how Finns perceived the ways in which large
relations. Veikkaus recognizes and understands its
minds. These results were based on the Hermelin
companies assumed their social responsibility. Once
customers throughout the organization. Further, we
consumer survey (12/2007).
again, Veikkaus ranked as the second best in terms
have managed to implement different reforms well.
of the degree of corporate social responsibility of
the different companies.
VEIKKAUS’ COMMUNICATIONS TRUSTED
In the Corporate Communications 2007 survey
The majority of Finns think that Veikkaus carries
carried out at the beginning of the year under
out its tasks more responsibly than foreign gaming
review, Veikkaus communications were rated as the
companies. More than eight out of ten Finns (82%)
best of all large companies with an overall grade of
considered Veikkaus’ exclusive right to provide
7.97 (7.68 in 2006). We were praised most for the
games in Finland a good thing. Nearly all of the
reliability of our communications. The survey was
respondents (97%) said it was important or very
conducted by the Finnish market research house
important that Veikkaus funds should be returned
Taloustutkimus.
to Finnish society. The survey was carried out by
the Finnish market research house Taloustutkimus.
20
Corporate responsibility
Meet a Finn to have won
WINNING A PLOT OF LAND IN
THE HOUSING FAIR AREA CAME
AS A COMPLETE SURPRISE
Marko Iso-Pietilä from Helsinki almost fell off his
one thousand square metres, which Marko won is
chair when he heard in August that he’d won a plot
worth around 20 000 euros. Marko and his girlfriend
of land in a draw organized by the City of Hämeen-
are still considering whether they should start
linna and the Finnish Housing Fair, where Veikkaus
building or not, but the plot was awarded to them
involved as a partner in cooperation. Marko struck it
without an obligation to build. In other words, Marko
lucky, since a total of 59 272 visitors to the Hous-
can assign the plot to someone else, if he wishes.
ing Fair had participated in the draw.
However, he says it is not altogether impossible
that they should move to Hämeenlinna.
Marko took part in the draw when he visited the Housing Fair with his girlfriend. Prior to the win, the happy
Marko says he plays Veikkaus games fairly frequent-
couple had not had any plans to move, and they had
ly. Sports games and Lotto are closest to his heart.
been to the Fair just to have a look around the area
– Fixed Odds Betting is my favourite game and I
and to get an idea about the winds that were blowing
play it actively. I have won small prizes every now
in the fields of building and interior decoration. The
and then. I also play Lotto regularly, says Marko.
U S IN
E HO
F TH
ER O
T IL Ä
W IN N
O -P IE
IS
O
K
MAR
G FA IR
P LOT
N
A F IN
IN .
TO W
City of Hämeenlinna was previously known to Marko,
who comes from a municipality nearby.
NEW HOME AT THE TOP
OF FINNS’ DREAMS LIST
BUILDING PROJECT
In 2007 Veikkaus was involved in the Finnish
UNDER CONSIDERATION
Housing Fair for the second year in a row. The
The plot, which was the main prize in the competi-
surveys have shown that things having to do with
tion, is located right next to the Housing Fair area, in
living, such as buying a new home or renovating or
a district to the east of Hämeenlinna and foreseen
decorating an old one, are at the top of the list of
as one of the growth areas of the city. The plot of
the things Finns dream about.
Corporate responsibility
21
SOCIAL RESPONSIBILITY PROVIDES
THE BASIS FOR VEIKKAUS’ OPERATIONS
Social responsibility has always been a central part of Veikkaus’ operations.
We generate versatile value to Finnish society by organizing games reliably and
responsibly.
Our social responsibility also materializes in the fact that the bulk of our proceeds
are used to benefit Finns. Veikkaus’ players are the biggest individual group to
finance Finnish sports, arts, 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.
The personnel survey showed that the majority of Veikkaus’ 370 employees
were happy with their jobs and employer. To maintain the employees’ professional skills, Veikkaus offers them versatile training opportunities. The occupational
health care services focused on mental wellbeing and preventive health care
in 2007. Further, the employees’ working capacity was supported with active
employee clubs, special staff events, recreational bonuses, and versatile leisure
facilities.
Social responsibility
23
”All Veikkaus games are
evaluated from an ethical
perspective. ”
OBJECTIVE: GAMING WITH SMALL STAKES
In June 2007 we made the tools for self-manage-
A lottery’s sphere of activities is unique in many
ment of gaming more versatile at our website. By
ways. Games offer players a chance to dream and
using the new tools, players can make their own
make their dreams come true if they happen to win.
gaming subject to euro limits for days, weeks, or
Game providers shall not only offer gaming experi-
months. They can also impose a self-ban on gaming
ences but they shall also assume responsibility for
for the rest of the day. In the year under review,
the provision of safe and reliable games.
Veikkaus’ customers made use of the self-ban option for a total of 3 341 times.
Veikkaus has the right to run pools and betting
games and lotteries. We offer an extensive game
PREVENTIVE MEASURES
supply, which covers nearly 30 products. By main-
TO FIGHT PROBLEM GAMBLING
taining a comprehensive supply, we aim to attract
Veikkaus Card, introduced in the autumn of 2006,
a wide range of customers playing with reasonable
is part of Veikkaus’ responsible gaming policy, al-
stakes.
lowing us to gather information we can use in the
development of our products and services and in
It is also essential that we can offer Finns an inter-
risk assessment. By using the card, our customers
esting and secure gaming alternative in the middle
also become more conscious about their gaming:
of the constantly growing international game
the card comes with a player ID to be used on our
supply. We want to make sure that our customers
internet gaming service where you can follow your
keep choosing the Finnish option. This is important
gaming history. We do not reward our players for
for the entire society: even if you did not win, you
playing much, nor do we offer bonuses.
benefit each and every Finn by playing Veikkaus
games.
There are several other measures we take to
prevent possible problem gambling and abuse. You
GAMING RESTRICTIONS
cannot play Veikkaus games on credit. Nor can you
PART OF SOCIAL RESPONSIBILITY
play our games in the night time. Our game system
A responsible game provider must consider the
is open from Monday to Saturday from 7 am to
disadvantages of gaming, such as gaming by young
10 pm, and on Sundays from 8 am to 10 pm. The
people and the possibility of problem gambling.
restrictions on gaming hours also cover our internet
Therefore, the secure provision of games necessar-
games. Further, people suffering from a gambling
ily also involves limitations.
problem can ask for a personal self-ban lasting
for three months at a time in our internet gaming
Veikkaus decided to impose age limits on all of its
games in 2005. The age limit for playing at our
points of sales is fifteen and the limit for playing
through the electronic channels is eighteen.
24
Social responsibility
service.
HIGH-STANDARD
CONSUMER PROTECTION
Consumer protection is part of all well-administered
gaming activities. Through proper consumer protection, we can guarantee our players’ legal rights in
possible problematic situations. Veikkaus’ players
”Number of problem gamblers has not increased
between the years 2003
and 2007.”
EFFECTIVE GAMING
RESTRICTIONS
• Age limits – fifteen years at the points of
sales and eighteen years in the electronic
can seek assistance in unclear situations concerning
channels.
prize payout by filing a request for recommended
All the parts involve clarifying questions with which
decision with the Ministry of the Interior.
we can evaluate the possible addiction-provoking
• Games not available in the night time– not
even on the net.
features related to the game ideas. On the basis of
In internet gaming
In 2007, we recorded 356 million gaming transac-
the results, we can suggest either concrete changes
• Daily limit on purchasing eInstants EUR 100.
tions at Veikkaus. There were 35 requests for
or that special attention should be paid to the game
• Live Betting subject to the following daily
recommended decision (78 in 2006). Most of the
idea which is being evaluated. At this stage, we can
and stake limits: EUR 100 per day, EUR 20
applications for recommended decision had to do
also recommend gaming restrictions on the game. In
with betting.
2007 we carried out a total of 25 evaluations.
ASSESSING GAME IDEAS WITH
The responsibility tool is well suited for the evalua-
A RESPONSIBILITY EVALUATION TOOL
tion of gaming products, but not for the assess-
In accordance with the objective set in 2006, we
ment of service concepts or distribution channel
made the responsibility tool, which we developed
solutions as such. To evaluate these changes,
cooperatively with the Finnish Slot Machine Associ-
Veikkaus has developed a set of questions of ethi-
ation RAY, part of our product development process.
cal evaluation based on the parts of the responsibil-
• Optional self-ban on gaming for three months
The tool is used for the ethical evaluation of new
ity tool. The set of questions was tested and made
• Optional self-ban on gaming for the rest of
game ideas or reforms of existing games from the
use of for seven times in the year under review.
per bet
• Maximum balance on game account
EUR 5 000.
point of view of possible gaming addiction.
TOOLS FOR SELF-CONTROL
OF GAMING PROVIDED BY
VEIKKAUS
the day
• Optional customer-specific self-ban for
We are continuously developing our games to
one, seven, or thirty days.
The responsibility evaluation
meet our players’ wishes and expectations. In
- The customers can decide the maximum
tool consists of eight parts:
this venture, the responsibility tool and the set of
amount of euros by themselves.
1) elements of gaming
questions for ethical evaluation are central. They
2) risk of financial loss
enable us to develop gaming products that fulfil the
3) structure of prizes and stakes
requirements of ethical planning and responsibility.
4) role of skills, knowledge and rules
By using them, we can prevent social problems that
5) attractiveness of the game and its environment
may arise from Veikkaus games.
6) additional tempting features
7) social features
8) accessibility
Social responsibility
25
GAMING ORGANIZATIONS FINANCE
RESEARCH INTO PROBLEM GAMBLING
The Finnish national gaming organizations work in
There is comprehensive information on gaming prob-
cooperation to prevent problem gambling. Veikkaus,
lems and electronic guidance available on Peluuri’s
Fintoto, and the Finnish Slot Machine Association
website www.peluuri.fi, where people can ask about
RAY finance research carried out by the Finnish
problem gambling anonymously and toll-free. In
Ministry of Social Affairs and Health to investigate
2007 there were 53 087 visitors to Peluuri’s website
OLLI ALHO
the possible detriments of gaming.
and the electronic guidance service answered a total
Professor
of 129 problem gambling-related questions. Peluuri
The Ministry of Social Affairs and Health commis-
also makes available a discussion forum “Valtti”,
sioned a gaming survey in September 2007 to find
where problem gamblers can seek peer support. The
out about, e.g., the number of problem gamblers.
discussion on the forum has been lively.
MARIA KAISA AULA
Ombudsman for Children
SARI ESSAYAH
M.Sc. (Econ.)
According to the survey, 38 000 Finns see their
gaming as problematic and an estimated 65 000
VEIKKAUS’ ETHICAL COUNCIL
JUKKA GUSTAFSSON
belong to the risk group of problem gamblers. Thus,
– EXTERNAL EXPERT PERSPECTIVE
Member of Parliament
the number of problem gamblers has not increased
Veikkaus’ Ethical Council is an advisory expert
from the previous survey, conducted in 2003. Two
organ which was nominated by Veikkaus’ Board of
thirds of the respondents regard the exclusive right
Directors in 2003. The Council’s task is to provide
as a good means to prevent problems related to
Veikkaus’ Board of Directors and operative manage-
RINGA JUNNILA
gaming.
ment with an external perspective to issues related
Entrepreneur (Vice chairman)
to the ethics of gaming, especially games and their
FINNISH PROBLEM GAMBLING
marketing, as well as to topics such as addictive
HELPLINE PELUURI
gambling.
TEEMU JAPISSON
Secretary General, Young Finland Association
KALEVI KIVISTÖ
Licentiate of Political Science (Chairman)
VESA-PEKKA KOLJONEN
The national gaming organizations finance collectively the Finnish Problem Gambling Helpline Peluuri.
In the year under review Veikkaus’ Board of Directors
Lehdistöneuvos (Finnish honorary title)
Peluuri is operated by the Finnish Blue Ribbon and
made the sphere of activities of the Ethical Council
TIMO LAITINEN
the A-Clinic Foundation, which also offer treatment
more precise. The Council also makes concrete sug-
Chairman, Finnish Sports Federation
to problem gamblers. Peluuri is a toll-free helpline
gestions and issues ethical statements on various
meant for problem gamblers and their families and
practical issues and debate concerning gaming.
friends. In 2007 Peluuri answered a total of 1 390
SANNA-MARI MYLLYNEN
Manager of Human Risk and
Work Welfare Services, Tapiola Group
calls concerning problem gambling. Of the callers,
At the beginning of the year under review, Veikkaus’
933 were players, whereas the rest were members
Board of Directors appointed new members to the
TUOMO PELTONEN
of their families and friends. Just 7% of the callers
Ethical Council for the years 2007 and 2008. Its
Professor, University of Oulu
said they were having problems primarily with
members appointed Mr. Kalevi Kivistö to be the
HANNU SAHA
Veikkaus games.
chairman and Ms. Ringa Junnila to be the vice chair-
Doctor of Philosophy
man. The Ethical Council convened three times in
2007. The topics dealt with during the meetings
covered questions related to, e.g., the ethics of marketing and guidelines on gaming by Veikkaus’ staff,
as well as ethical argumentation related to gaming.
26
MEMBERS OF VEIKKAUS’
ETHICAL COUNCIL 2007
Social responsibility
Meet a Finn to have won
FASCINATED BY SPEED IN
THE RALLY OF THOUSAND LAKES
Veikkaus’ Golden Tickets took a group of fourteen
BETTING NUMBER ONE FAVOURITE
winners right to the middle of action in the Rally of
Hannu Koivusipilä was thrilled to bits when he heard
Thousand Lakes in Central Finland. For all the win-
the first purrs of motors in the pit area. Sports have
ners, this was the first time they had the chance to
always been close to his heart, and he is a great fan
attend a round of FIA World Rally Championships, so
of Veikkaus’ sports games.
there was plenty to see on the spot. The group got
– I mostly go in for betting; Fixed Odds Betting,
to enjoy the rally atmosphere both at the pit and on
Multibet and Result Odds Betting are my greatest
the VIP premises of the Killeri Super Special Stage.
favourites. But I also play Lotto regularly, have been
The introduction to the world of rally began from
doing so with an entry with the same numbers for
the maintenance area, where Veikkaus’ guest group
ten years already.
was allowed to follow the maintenance procedures
at Ford team’s pit area close up and to exchange
After the visit to the pit area, the group’s day of rally
a few words with rally world champion Marcus
continued with a super special stage. The feeling
Grönholm.
during the Killeri Super Special Stage was exquisite
R
TO M E
’ CUS
K AU S
S
VE IK
IC KE T
EN T
G O LD
BENE
F IT S
N
A F IN
IN .
TO W
and the group enjoyed food and drinks whilst
Hannu ja Satu Koivusipilä from Central Finland
waiting for the race to start. The night climaxed in a
took the trip as a chance to gain new experiences.
pair start, with Marcus Grönholm competing against
– I read in the paper that our neighbours had been
Mikko Hirvonen. The audience cheered enthusiasti-
invited by Veikkaus to see the Eurovision Song
cally on the Finnish drivers, and finally Grönholm
Contest after they had won in the Golden Tickets
came out as the winner in the race between the
draw. That’s when I said to Hannu that I wished that
team mates. But the winners of the Golden Tickets
would happen to us, too. You can’t begin to guess
draw continued to have a good time together for a
what a pleasant surprise it was when we heard that
long time that night.
we’d struck it lucky, said Satu Koivusipilä at the pit.
Social responsibility
27
SIGNIFICANT BENEFIT TO SOCIETY FROM GAMING
Veikkaus’ operations benefit all Finns. Every one of us
can enjoy Veikkaus funds, e.g., whilst using the various sports facilities, going to the cinema, theatre, or
taking part in the activities of the Scout Organisation.
Without a carefully planned distribution of the euros
lost on Veikkaus games, many good things would
be left undone and many unforgettable experiences
would not be experienced. In other words, it benefits
us all that gaming proceeds are channelled back to
society to our joy and advantage.
In 2007 Veikkaus returned EUR 397.7 million of
funds to the Ministry of Education, i.e. over one
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 (99%) and youth work (88%) were covered
with Veikkaus funds. Further, 48 percent of the
Ministry’s financial support to arts and 29 percent
of the funds to science came from Veikkaus funds.
ARTS, SPORTS,
SCIENCE AND YOUTH WORK
The Finnish Ministry of Education distributes funds
from Veikkaus’ proceeds to the Finnish culture in
accordance with the Funds Distribution Act* laid
down by the Parliament of Finland. According to the
act, 38.5% of the funds are allocated to arts, 25%
to sports, 17.5% to science and 9% to youth work.
Further, ten percent of the funds are channelled
each year to the above-mentioned beneficiaries as
separately specified in the State Budget.
The Funds Distribution Act was laid down in 2001,
and its regulations on the distribution of funds 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
implementation of the act. By 2010, the statutory
state funds to libraries will be financed with tax
revenue again. In 2007 Veikkaus funds were used
to cover 33 percent of the whole state funding to
the libraries (EUR 36.5 million).
THOUSANDS OF COMMUNITIES
RECEIVE VEIKKAUS FUNDS EACH YEAR
In all, Veikkaus funds were allocated to over 2 000
different communities in 2007. These communities
can distribute funds further to various projects. The
beneficiaries in the field of arts include museums,
the opera, and various musical events. For example,
the funds distributed to sports are further allocated
to the building of recreational sports facilities,
sports associations, sports research, and recreational sports for children and young people.
In science, the greatest beneficiary is the Academy
of Finland, financing hundreds of scientific research
projects each year. Of the funds to youth work, the
majority are channelled to promote young people’s
involvement in citizen organisations and to leisure
activities, e.g., young people’s associations.
*
Act on the distribution of proceeds from lotteries, betting and
pools games
Shares of beneficiary sectors of Veikkaus funds allocated by the Ministry of Education
2003-2007
EUR million
2007
%
2006
2005
2004
2003
Arts
184.8
46.5
190.4
185.3
187.5
191.2
Sports
100.2
25.2
97.8
89.9
88.1
84.0
Science
76.6
19.3
79.5
75.7
75.7
75.7
Youth work
36.1
9.1
35.2
31.6
28.6
20.8
397.7 *
100
401.4
382.6
380.0
371.7
Total
*) In 2007 the Ministry of Education allocated a further EUR 4.2 million from the savings of Veikkaus funds.
Share of Veikkaus funds of all funds allocated by the Ministry of Education in 2007
Sector
Share of Veikkaus funds %
391.3
48.3
Science
270.5
28.6
Sports
101.6
98.7
40.8
88.4
Youth work
28
Funds total EUR million
Arts
Social responsibility
RELIABLE AND OPEN COMMUNICATIONS
Gaming is always a random activity where you
Veikkaus’ customer service answers the queries
cannot know for sure what the outcome will be –
of 3 000 customers a week on the average. Most
regardless of whether we are talking about lotteries
of our customers still prefer to pick up the phone,
or sports games. This is an issue we want to draw
but internet queries are on constant increase. The
special attention to in all our communications and
system of dealing with the contacts to Veikkaus’
marketing. We distribute open information about our
customer service was reformed in April 2007, with
games, without creating illusions about gaming as
the new system helping us to serve our customers
marketing communications shall be social
an easy way to make money.
better than before.
responsibility: we respect the consumers’
We want to offer our customers open information
RESPONSIBLE MARKETING
tion and encouragement of large-scale
about Veikkaus as a company, our games, and the
Veikkaus pays special attention to its marketing
consumption on gaming.
changes related to them. We communicate actively
communications, which are regulated by strict
to both the media and our customers. Veikkaus’
ethical guidelines. Responsibility is the guiding
website is very popular, with over 100 000 users on
principle: we will not encourage people to play
trust in gaming and game providers, nor
the liveliest days.
excessively. Our ethical guidelines for marketing
exploitation of their inexperience or lack of
communications were specified at the beginning of
knowledge.
ETHICAL GUIDELINES
FOR MARKETING IN
A NUTSHELL
• The guiding principle of Veikkaus’
individual rights, minimising the idealisa-
VEIKKAUS – HOW CAN WE HELP YOU?
2005. Veikkaus spent EUR 9.9 million (10.3 million
Every day, we record tens of thousands of gaming
in 2006) on product advertising last year. This
transactions. Therefore, our customers frequently
represents 0.7% of our total turnover.
• There shall be no abuse of the players’
• Marketing communications shall not be
directed to consumer groups that are
need advice on various topics related to our opera-
especially vulnerable in view of their age,
tions. Advice on the games, game results, prizes,
social position, or other special features.
and other issues related to Veikkaus is available
Children are one such group.
through Veikkaus’ customer service, which is open
during the opening hours of the game system,
seven days a week.
• Veikkaus will guarantee the security of its
web environment.
• All Veikkaus’ marketing partnership agreements shall include regulations on fraud
and doping (sports-related agreements).
The agreements thus drafted will enable
Veikkaus to withdraw instantly from any
cooperation in which the other party has
been engaged in fraudulent activities.
Social responsibility
29
CONTENTED EMPLOYEES GUARANTEE SUCCESS
EQUAL OPPORTUNITIES
AT VEIKKAUS
• In recruitments (external and internal), the
most qualified applicant shall be recruited.
We continued to develop and implement further the
processes of product development and customer
operational model based on our customer strategy
relations, IT skills and foreign languages. Veikkaus’
in 2007. The staff’s work enjoyment has been sup-
staff reinforced their knowledge of the field by
ported by, e.g., enhancing safety at work and invest-
participating in a series of lectures titled “Trends of
ing in working capacity, as well as and by organizing
the world of gaming and entertainment”.
different recreational happenings.
INTERNAL COMMUNICATIONS
Whilst recruiting from amongst equally
qualified and competent applicants, positive
A staff survey was carried out in autumn 2007 to
PRODUCE UP-TO-DATE INFORMATION
discrimination shall be complied with, and
analyze Veikkaus’ workplace atmosphere and the
The greatest reform within Veikkaus’ internal com-
the applicant representing the minority
staff’s satisfaction. At the same time, we asked the
munications during the year under review was the
gender shall be recruited.
staff about their opinion of measures of develop-
introduction of a new intranet system. The new In-
ment they considered necessary. On a scale from
net, launched in May 2007, facilitates the exchange
shall entitle to the same salary, irrespective
1 to 5, Veikkaus’ staff rated their satisfaction with
of up-to-date information in Veikkaus. Along with
of the employee’s gender.
their workplace with an average grade of 3.79.
the reform, we were able to increase the number
Most of our employees were happy with their work
of the updaters and main users of the intranet. The
part of the training of Veikkaus managers
and with Veikkaus as an employer. In the past few
new Innet also makes available more information
and leadership to enhance their ability to
years, we have been focusing on processes and
and is easier to access.
take into account the equal opportunities
steering systems. The development work has been
perspective in their work.
• Jobs with the same requirement standards
• Equal opportunity issues shall be made
successful, since the survey showed that our staff’s
One of the core features of the new Innet is the
• We shall establish explicit and comprehen-
appreciation of the link between their own work and
idea and innovation tool Ideasampo, where all of our
sive requirement standards for the evalua-
Veikkaus’ business strategy had improved the most.
employees can suggest new ideas for development.
tion of the recruitment of male and female
In 2007 it was 4.09 on the average (as compared
During 2007, we recorded a total of 135 new ideas
employees to different positions and for
with 3.93 in 2006).
in Ideasampo. We also had nine special idea theme
days in Veikkaus to develop new ideas.
the follow-up of their salary development.
• The development of equal opportunities
TRAINING FOCUSED ON
shall be followed carefully, and their status
IN-DEPTH EXPERTISE
In 2007, we had nine management info events and
shall be communicated openly to the
Veikkaus continued to offer versatile training to
six other internal info events in Veikkaus. The web-
employees.
its staff in 2007. The professional development
cast system, introduced in 2006, enables Veikkaus’
focused on the training of specialists. They were
staff to follow the info events organized at the
offered a multi-disciplinary training programme, pro-
main office live on their own computer screens or as
viding tools and preparedness for work requiring ex-
video clips through the intranet.
pertise and, e.g., for the reinforcement of their own
personal management skills. A total of 35 members
We introduced two new types of events to our
of Veikkaus’ staff took part in the programme.
agenda of internal communications in 2007: News
Forums and A-Forums concerning the sphere of
30
Social responsibility
The Game Academy, the training programme for
Gaming Business Operations, launched at the end
Veikkaus’ personnel, offered 61 different training
of the year. With the help of the News Forums,
events in 2007. The Game Academy’s training
Veikkaus’ employees had access to information
supporting employees in their work centred on
about topical themes and company matters that
KEY PERSONNEL INDICATORS
PERSONNEL
Change
2007
2006
2005
2004
Ð
370
373
372
377
207
211
214
221
Men
Ð
Ï
163
162
158
156
Employees under 30
Ï
11%
10%
11%
26%
Employees between 30 and 50
Ï
64%
62%
51%
40%
Employees over 50
Ð
Ï
25%
26%
31%
34%
42.3
42.2
42.5
42.4
12.1
12.7
13.1
13.5
Permanent
Ð
Î
355
355
355
359
Fixed-term
Ð
15
18
17
18
Ð
Ï
12
19
25
16
Newly recruited fixed-term
15
14
13
Retired
Î
10
10
19
Gave their notice
11
22
16
5
Terminated fixed-term contracts
Ð
Ï
9
7
8
14
Total turnover
Ð
7.7%
9.0%
10.9%
8%
Number of employees
Women
Average age of personnel
Average length of employment contracts
Changes in personnel
Newly recruited permanent
7
Personnel expenses, salaries and wages
Average salary *
Ï
3,324 €
3,157 €
3,092 €
2,951 €
Personnel expenses
Ï
22.4 M€
21.6 M€
21.9 M€
19.5 M€
Share of salaries
Ð
Ï
17.8 M€
18.0 M€
16.5 M€
15.6 M€
4.5 M€
3.6 M€
5.4 M€
3.9 M€
Ð
425 days
658 days
454 days **
413 days **
Ð
Ï
158
174
100
187
Expenses of occupational health care
373,143 €
340,032 €
398,508 €
388,059 €
Expenses / employee
Ï
1,009 €
911 €
1,071 €
1,029 €
Sick leaves total
Ð
4,456 days
5,159 days
5,423 days
5,158 days
Absence from work percentage
4.4% ***
4.8% ***
6.2%
5.8%
Days of absence on average
Ð
Ï
6.4 days
6.3 days
5.6 days
6.2 days
Work-related injuries ****
Ð
5
15
9
6
Share of indirect personnel expenses
Training days / all employees
OCCUPATIONAL HEALTH CARE
Physical examinations and follow-up examinations
*
**
***
****
Excludes the salaries of the members of the Executive Team
Figures include only training by the Game Academy
The figures for years 2007 and 2006 comply with the framework established by the Confederation of Finnish Industries
Includes work-related injuries, business travel accidents and occupational diseases
Social responsibility
31
were being dealt with in the media. The A-Forums,
Veikkaus has an active Health and Safety Commit-
Besides the events and the club activities, Veikkaus’
in turn, concerned news about Veikkaus business
tee elected for one year at a time, which takes care
staff received a recreational bonus, which totalled
operations. There were eleven News Forums and
of the workplace safety issues at Veikkaus. The
EUR 24 109 (EUR 24 249 in 2006). The recreational
one A-Forum in the year under review.
committee aims to ensure the health and working
bonus is paid as a one-time payment amounting
capacity of each employee. It also analyses the
to EUR 70 per person at the maximum. Veikkaus’
Three casual Friday events (“Hilperi” theme
health hazards caused by the working environment
leisure facilities in Kirkkonummi on the south coast
afternoons) were arranged for the staff at the
and methods, and offers guidance on problems
and Saariselkä in Lapland, which are open to the
head office. The objective of these events was to
related to workplace health and safety.
staff, also contribute to work enjoyment.
about topical issues and the different units in the
Veikkaus also has a Health and Safety Delegate,
COOPERATION BETWEEN
company in a casual way. The themes covered in
elected for two years at a time. The Health and
EMPLOYEES AND THE EMPLOYER
2007 included the Eurovision Song Contest and
Safety Committee has at least four statutory
Of Veikkaus’ staff, 51 percent are members of
entertainment.
meetings a year. The meetings are attended by the
Veikkauksen Virkailijat ry (Veikkaus officials’ asso-
occupational health nurse and, if necessary, the
ciation), a trade association under the Trade Union
company physician.
SUORA.
to the entire personnel four times a year. The
LIVELY EMPLOYEE CLUB
Veikkaus is a member of Employers’ Association
magazine provides background and specifies the
AND RECREATIONAL ACTIVITIES
of the Special Branches, which belongs under the
themes dealt with in the daily communications via
Veikkaus boasts a long tradition of promoting
umbrella organization Confederation of Finnish In-
the intranet.
activities that improve the staff’s working capac-
dustries. Our Head of Personnel is a member of the
ity, e.g., active employee clubs. In 2007 Veikkaus’
Board of the Employers’ Association of the Special
OCCUPATIONAL HEALTHCARE PROMOTES
clubs spent a total of EUR 48 000 on their various
Branches. Veikkaus’ actual collective bargaining
THE WELL-BEING OF EMPLOYEES
activities. The amount was used to support, e.g., the
agreements are negotiated centrally at the union
Besides the statutory occupational health care
sports, arts, travel and fishing clubs.
level. Further, we have the opportunity of making
reinforce the community spirit, offering information
In addition to the intranet, we publish a personnel
magazine YksiXKaksi (1 x 2), which is distributed
services, Veikkaus’ employees are entitled to health
local agreements. In autumn 2007 a new collective
care of the GP standard, and to specialist consulta-
The most important staff event of the year was
bargaining agreement was signed for the period
tions in connection with, e.g., spectacle prescription
Veikkaus Cup at the Sports Institute of Finland in
between 1 October 2007 and 28 February 2010.
renewals. The employees are compensated for
September. In the event, spiced up with a glint of
health care expenses after an initial four-month trial
humour, our entire staff were given the chance to
period of employment.
do various recreational sports. They also had the
opportunity to take a walking test.
Veikkaus’ occupational health care services focused
on mental well-being and preventive health care in
2007. The sick leaves were most frequently caused
by musculoskeletal disorders.
32
Social responsibility
Meet a Finn to have won
MOVIE FEVER WITH
VEIKKAUS CARD
As the customer reward of August 2007, Veikkaus
Blomgren plays Veikkaus games over the net, where
allotted VIP tickets to the gala premiere of the
it is easy to make an entry of Lotto or Joker. Viewing
movie Ganes, a story about a legendary Finnish rock
the Lotto draws, she has noticed that Veikkaus
band from the seventies. The eight winners of the
funds are also used to finance the Finnish movie
draw with their avecs had the chance to enjoy the
industry.
movie and to take a peek into the backroom and
see the principal actors. The unique occasion in the
The winners continued to have a good time at the
spirit of rock’n’roll offered the winners an experi-
gala after the movie. They also got the chance to
ence that exceeded all their expectations. They
meet the principal actors, Eero Milonoff, Olavi
even had a chance to meet the original band leader
Uusivirta and Jussi Nikkilä in the backroom of the
and vocalist Remu Aaltonen.
theatre. The actors were happy to answer their
questions and said they were pretty satisfied with
– This was a really great thing to happen. Winning
the movie themselves.
in the draw came as a total surprise, since I hadn’t
even noticed there was a draw going on. And it was
– This was a most wonderful day, said Cecilia Blom-
nice to see the boys, too, says Astrid Blomgren, a
gren, who had joined her mother for the evening as
winner from southern Finland, truly impressed by
her avec.
TO M E
’ CUS
K AU S
S
VE IK
IC KE T
EN T
G O LD
NE
R BE
F IT S
N
A F IN
IN .
TO W
the gala.
Social responsibility
33
ENVIRONMENTAL RESPONSIBILITY
NATURAL PART OF OPERATIONS
Veikkaus takes into account the environmental issues in its activities and wants
to do its share in the work for the environment. Gaming takes place mostly electronically and its environmental impacts are seen as energy consumption. Gaming
also generates paper and cardboard waste which can be recycled. As a service
“Veikkaus was granted
the right to use the
Green Office label by
WWF Finland in 2007.”
organization, Veikkaus does not really generate hazardous waste that would
overload the environment.
In 2007 Veikkaus signed the Green Office agreement, developed for the purposes of office work, with WWF Finland. At the same time, a special environmental programme covering our head office was drafted. In the autumn we passed a
control carried out by WWF and were granted the right to use the Green Office
label. The label shows that our workplace community takes into account the
GREEN OFFICE CRITERIA
environmental impacts by saving energy, recycling, and, e.g., keeping the staff
informed about environmental matters. In the year under review, Veikkaus ranked
among the top five companies in the “Saver of Natural Resources” competition
organized by YTV (The Helsinki Metropolitan Area Council).
• A person in charge of Green Office matters
appointed from amongst the staff.
• Environmental programme drafted.
• Staff being informed and updated about
environmental issues.
• Waste sorted and recycled according to the
local regulations concerning waste management.
• The CO2 emissions resulting from energy
consumption reduced.
• The objectives of the environmental
programme monitored and reported to WWF
every year.
• The environmental issues developed continuously.
Source: WWF Finland
Environmental responsibility
35
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 wrappings, are recyclable. All
of the plastic wrapping materials are combustible,
so they can be sorted as plastic waste or energy
waste. We offer our retail outlets regular guidance
on how to sort the materials correctly.
Veikkaus’ playslips are printed on environmentfriendly paper, with printing inks that are primarily
plant-based. In 2007 a total of 105 playslips were
submitted, which is 22% less than in the previous year. The thermal paper used in the receipts
is recyclable, and the paper spools of the receipt
rolls can be collected as energy waste. In 2007, ca.
220 000 receipt rolls were used. During the year,
we introduced rolls 33% longer than the ones that
had been in use before; thus, the consumption of
receipts in terms of roll metres remained roughly
at the level of the year before. Our playslip and
receipt roll suppliers are entitled to use the Nordic
Environmental Label.
Instant tickets are not recyclable, but they have
to be destroyed by shredding for security reasons.
In 2007, some 64.2 million instant tickets were
printed, i.e. 8.6% more than in 2006. Unsold and
withdrawn tickets are disposed of as energy waste.
One percent of the sales of Nature Instant are
distributed to WWF and the Finnish Association
for Nature Conservation. In 2007, these funds
amounted to around EUR 55 000.
Veikkaus Card, launched in the autumn of 2006 is
made of PVC plastic, which is non-recyclable. The
environmental regulations are taken into account in
the manufacturing process of the card. In the year
36
Environmental responsibility
under review, a total of 190 000 Veikkaus Cards
were ordered. Veikkaus Card replaces the Winnings
to Bank Account slips made of paper. Until now, 3.5
million of Winnings to Bank Account slips have been
used every year.
NEW GAME TERMINALS
REQUIRE LESS MAINTENANCE
In 2007 Veikkaus delivered new game terminals to
each of its points of sales. At the same time, a total
of 10 700 instant game terminals, online terminals,
customer screens and printers were removed. The
terminal components and circuit cards of the equipment count as hazardous waste, but the mechanical
parts can be collected as metal and plastic waste.
The abandoned terminals will be delivered to
Kuusakoski Oy for secure disassembly and collection
of valuable components. Further, around 1 150 of
the removed terminals were transported to another
gaming company abroad to be reused there.
Veikkaus takes care of the servicing and replacement of the equipment jointly with a subcontractor.
Our service network covers the entire country. In
2007 we made 2 150 service calls, 436 of which
were purchased from the subcontractor. After the
terminals were replaced, the need for maintenance
calls has decreased significantly: the Mean Distance
between Failures (MDBF) for the new terminals was
600 days, whereas it had been around 300 days for
the old terminals in the previous years.
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 30 kg of waste in all, of which the waste generated at the service unit of head office in Vantaa
represents 70—85%.
In addition to making service calls, our maintenance service supports the implementation of
Veikkaus’ brand strategy in the sales network. The
maintenance service staff made a total of 3 209
calls at the points of sales to check that Veikkaus’
campaigns were on display at the right time, and to
update the sales equipment in accordance with the
uniform Veikkaus design. The kilometres accumulated on the service and other calls made by Veikkaus’
own service staff amounted to a total of 310 000.
Besides the servicing kilometres, a non-specified
number of kilometres accumulated on, e.g., the
work-related travel by the regional managers and
the training personnel.
Service calls at points of sales
BY SERVICE DISTRICT
*
2007
2006
2005
2004
Vantaa
910
1,553
1,536
1,584
Tampere
284
462
488
607
Kuopio
314
398
411
489
Oulu
206
409
369
444
Outsourced terminal replacement service
436
758
773
780
Other than service calls *
3,209
1,782
-
-
Total
5,359
5,362
3,577
3,904
Since 2006, the maintenance service has been making separate point-of-sales calls in addition to the service calls.
Meet a Finn to have won
FOOTBALL POOLS CHAMPIONSHIPS
WON WITH STRONG EXPERIENCE
Janne Salonen, a carpenter from southern Finland,
between West Ham and Fulham in Britain. He was
was happy to accept the trophy awarded to him in
joined on the trip by nine other Football Pools
November for winning the Finnish Championships
players who had had success in the Championships.
in Football Pools 2007. This time the trophy did not
Salonen, who is a devoted fan of British football,
go to a beginner; Mr. Salonen won the competition
was thrilled about the trip, since he had already
with nearly thirty years of experience of playing
been planning to go and see a Premier League
Football Pools.
match for a long time. Then, in January 2008, his
dream came true.
Salonen decided to take part in the Championships
– The trip was simply great. The best thing about
with the expertise of an experienced long-term
it was that you got to experience the atmosphere
player. On the first round, he got eleven matches
of a real British football match. The fans were fully
and won a T-shirt. The two rounds that followed
absorbed in the match and you could hear them
were decisive, as he attained twelve matches twice
singing their cheer songs even afterwards. You
in a row. Salonen even had a bit of luck, when the
don’t get that kind of atmosphere in Finland, says
against-odds bets he’d made matched and the
Salonen, impressed.
T B ALL
E FOO
F TH
S
ER O
N S H IP
W IN N
A M P IO
H
C
P O O LS
NEN
E S ALO
N
N
JA
N
A F IN
IN .
TO W
crosses he’d marked as certain held. On the last
three rounds, Salonen reached ten matches twice,
The Champion is going to continue playing Football
which made him the Finnish Football Pools Cham-
Pools just as he’s done before. Salonen and his
pion of the year.
dad and brother are in the habit of making a joint
reduced system entry on every round, seeking to hit
PREMIER LEAGUE
the jackpot.
FOOTBALL ON THE SPOT
Besides the Championship trophy, Mr. Salonen was
awarded a trip to attend a Premier League match
Environmental responsibility
37
Water, electricity, and district heat consumed at Veikkaus’ head office
2007
2006
2005
2004
2003
District heat (MWh)
2,559
2,689
2,785
2,791
2,400
Water (m3)
4,300
5,500
4,000
4,100
4,100
Electricity (MWh)
4,350
4,090
3,750
3,500
3,300
2007
2006
2005
2004
26
23
20.1
-
Waste generated at Veikkaus’ head office
TONS
Energy waste
Recyclable carton
0.6
0.6
0.9
0.6
Recyclable paper
30.6
31.6
26.2
31.2
Glass
1.3
1.5
1.7
2.0
Metal
2.1
4.4
2.6
1.1
Treated timber
5.4
7.4
9.6
5.7
Plastic
0.1
0.2
-
0.1
11.6
10.8
7.5
11.6
-
-
c. 11
c. 26
Mixed waste
0.9
1.1
1.7
41.8
Confidential paper
6.7
5.9
7.8
6.9
65.7
56.2
45.4
-
4.3
5.8
4.5
-
15.0
14.4
3.3
2.4
1.5
3.3
2.3
1.6
Cardboard
Building and renovation waste
Instant tickets
Office paper
Biological waste
WEEE *
* Waste electrical and electronic equipment
Office paper has been recorded as separate waste since 2005.
The disposal of building and renovation waste is at the subcontractor’s responsibility,
which is why there are no figures available for 2007.
SAVING THE ENVIRONMENT
THROUGH COMBINED TRANSPORT
We aim at well-planned routes and combining several
deliveries in larger one-time transports in all our
transportation. Transportations to retailer outlets
and sales offices are managed from a central depot
at our head office in Vantaa. In 2007 the Logistics
Unit delivered 270 000 orders containing, e.g.,
receipt rolls, playslips, instant tickets, and products
used for marketing and sales promotion.
In the course of the year under review, we introduced an electronic system for combining several
transports, enabling us to combine around 20 000
deliveries. Combined transportation reduces not
only the expenses but also the environmental load,
cutting down the kilometres. In 2008 Veikkaus aims
at enhancing the combination of deliveries even
more in cooperation with its subcontractor.
IT ACQUISITIONS INCREASED
ELECTRICITY CONSUMPTION
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. To
save energy, we inform our staff about the necessity
of turning off the lights and electric equipment when
they are not used. Further, whilst making acquisitions,
we favour environment-friendly equipment.
In addition to the head office in Vantaa (3.3 ha) and
the district centre in Tampere, we have small sales
offices around the country. They are located in
Vaasa on the west coast, Turku in the south, Kuopio
in the east, and Oulu in the north. We also have
meeting facilities in the city centre of Helsinki and
in Vierumäki Sports Institute, as well as recreational
facilities for the staff in Kirkkonummi on the south
coast (13.3 ha) and in Saariselkä in Lapland (0.3 ha).
38
Environmental responsibility
We only have access to the accurate figures of
energy consumption from the premises owned
by Veikkaus, i.e. from Vantaa, Kirkkonummi and
Saariselkä. The specified consumption details of the
rented facilities are not accessible. The largest part
of Veikkaus’ energy consumption and waste is generated at the head office in Vantaa, where a total of
296 people were working in the year under review.
Preparing for the game system reform and the new
IT and server acquisitions increased the energy
consumption at the head office by 6.4% over the
previous year. In all, Veikkaus’ energy consumption
amounted to ca. 5 290 MWh in the year under
review.
Veikkaus’ head office uses environment-friendly
district heat. The consumption of district heat
decreased by 4.8% from the previous year, whereas
the consumption of water decreased by 21.8%. The
warm and humid year enabled us to cut down the
consumption of heat and water.
In accordance with the Environmental Programme,
we will be paying special attention to energy consumption at Veikkaus’ head office. We aim to save
energy by structural changes, balancing the heating
networks, finding solutions for the collection of
heat, and replacing the technological equipment
with more environment-friendly alternatives.
EFFECTIVE WASTE SORTING
CAN BE SEEN IN WASTE AMOUNTS
We have paid special attention to the effective
sorting of waste. Thanks to efficient campaigns
organized by Veikkaus’ Ecological Team, consisting of members of the staff, waste sorting has
become an established part of the activities at the
head office. The effects of sorting can be seen in
the small amount of mixed waste and an increase
in the amount of biological waste. Mixed waste
represented just 0.5% of the total amount of waste.
The degree of utilization of waste generated at the
head office, i.e. the share of recyclable waste of the
total amount of waste, was 99.5%.
The collection of biological waste has been made
more effective, e.g., in the staff’s break rooms. A
large part of the waste that was previously treated
as mixed waste is now sorted as energy waste,
which can be used as an additional fuel in, e.g.,
thermal power stations.
The district sales offices do not have the same
opportunities to sort waste as the offices on the
premises owned by Veikkaus. The offices sort the
waste they generate as best they can, but the ones
which are located in rented offices in large office
complexes, cannot collect, e.g., energy waste, if the
collection is not organized by the real estate.
Reducing the consumption of paper has been made
part of the Environmental Programme. Besides
informing the employees regularly about environmental issues, we are currently surveying the staff’s
printing behaviour.
ECOLOGICAL TEAM ACTS AND INFORMS
Veikkaus’ Ecological Team is a working group set up
by the staff to implement Veikkaus’ environmental
responsibility in practice and to promote the staff’s
understanding of environmental matters. The
Ecological Team works to reinforce waste sorting
and to reduce consumption at our own offices. It
has been actively involved in the drafting of the
Environmental Programme and initiating Veikkaus’
cooperation with WWF Finland.
In the year under review, the Ecological Team
promoted the staff’s awareness about the environment through the intranet, the staff magazine, and
various happenings related to nature and recycling.
In October Veikkaus took part in the campaign of
the Energy Saving Week, arranged by Motiva Oy.
In spring 2007 Veikkaus rewarded the members of
the Ecological Team for their active work for the
environment.
OBJECTIVES OF VEIKKAUS’ ENVIRONMENTAL PROGRAMME
FOR THE HEAD OFFICE IN 2008
• To save on the consumption of energy, we will study the possibilities of collecting heat, seal up the windows, and renew the heating network.
• As old computers are replaced with new ones, their total number is reduced. Whilst making acquisitions, we favour environment-friendly equipment.
• Paper consumption is drawn special attention to through communication and by surveying the staff’s printing behaviour.
• We will continue to offer guidance to the staff on waste sorting and recycling.
• When transportation to company events is needed, it will be organized as joint transport for larger numbers of employees, whenever possible.
Environmental responsibility
39
ECONOMIC RESPONSIBILITY OBLIGES
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 total of EUR 1 391.4 million in 2007. Over half of this, EUR 713.0 million,
was paid out to players as prizes. The majority of the other half, a total of EUR
397.7 million, was returned to the Ministry of Education to be further distributed
to the good causes.
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 480.6 million to the State in 2007.
Veikkaus paid a total of EUR 82.9 million of tax in the year under review,
EUR 64.8 million of which was lottery tax and EUR 18.1 million value added
tax. The commissions we paid to our retailers amounted to EUR 78.4 million.
PRIZE PAYOUT
Veikkaus’ operating expenses totalled EUR 107.8 million, out of which personnel
EUR MILLION
expenses represented EUR 22.4 million.
700
561 631
679 702
713
600
The distribution of Veikkaus’ proceeds is laid down by law, and Veikkaus funds
are only allocated to the statutory beneficiaries: to the promotion of arts, sports,
science, and youth work. Veikkaus does not distribute its proceeds by itself, nor
500
400
can it make donations to charity.
300
200
Veikkaus’ contribution and taxes paid to the State 2007
Return to the Ministry of Education from the profit of 2007
Taxes
Total (34.5% of the turnover)
397.7 EUR million
100
82.9 EUR million
480.6 EUR million
0
2003 2004 2005 2006 2007
Economic responsibility
41
VEIKKAUS GAMES
PROVIDE LIVELIHOOD TO MANY
Veikkaus employs directly around 370 Finns.
However, our real employment effect is much bigger
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
has wide societal significance. 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.
NEWEST TECHNOLOGIES
ENABLE EFFECTIVE OPERATION
Veikkaus is one of the most efficient gaming
companies in the world. Our operating expenses
represented a mere 7.75% of the turnover in 2007.
Our small company of just a couple of hundred employees generated a profit of over EUR 400 million.
Our extraordinary efficiency is based on, e.g., the
ability to apply the newest technologies to gaming. In 2007, the sales via our electronic channels
increased by 22.8%.
Veikkaus and the game system supplier GTech
signed a continued agreement in December 2007.
Thus, we used the option of continuing the agreement on the supply of game systems made in 2004.
Our current agreement will be effective at least
until 2013.
42
Economic responsibility
Veikkaus continued to invest in the uniformity and
improved effectiveness of its internal operations in
the year under review. The focus was on specialists,
who were offered training related to their own
tasks and work in a matrix organization through a
special training programme. Human resources were
allocated to areas essential from the point of view
of the corporate strategy in 2007.
The estimated profit of Veikkaus funds for the year
2008 is EUR 407.9 million. The demand for games
focuses more and more on products with high
event frequency and smaller margins, so securing
the growth of the proceeds requires that Veikkaus’
operations remain extremely cost-effective.
FINNS PLAY MODERATELY
Gaming is not always just about money. Veikkaus
wants to offer Finns comprehensive and pleasant
gaming experiences, a bit of excitement, a chance
to test their knowledge, to dream and have a good
time.
Finns are eager players. As many as 86% of Finns
have played Veikkaus games at least sometimes.
Seventy percent of Finns play at least once a year
and over forty percent play once a week. (The Atlas
survey, TNS Gallup 9/2007). There are plenty of
players, but the stakes are reasonable: in 2007,
Finns played for an average of EUR 264 per capita,
i.e. around five euros a week.
In the year under review, a total of 356 million
gaming transactions were recorded in Veikkaus’
game system. In all, we paid out a total of 64
million different prizes to players. We made a new
weekly sales record, nearly EUR 35 million, at the
end of the year on round 51/2007. The number of
big prizes of over EUR 168 188 was 108 in 2007,
and 21 of them amounted to over one million
euros. By the end of 2007, as many as 328 Finns
had become millionaires by playing Veikkaus games
over the years.
KENO’S SUCCESS CONTINUES
The daily drawn Keno retained its success in 2007.
With its turnover of EUR 294.5 million (+9.5%),
Keno is Veikkaus’ second most popular game. In the
category of sports games, Fixed Odds Betting is by
far the most popular in Finland. Its turnover curved
slightly downwards, to EUR 136.6 million (-2.1%).
Lotto was still the Finnish favourite game, selling
for a total of EUR 419.8 million (-2.3%) in 2007.
Its turnover was affected especially by a smaller
number of jackpots as compared with the previous
year. The largest jackpot of the year was won in
March (round 13), when a player from the City of
Vaasa on the Finnish west coast landed a jackpot of
EUR 4.5 million. It was the second biggest jackpot
in Lotto’s history. The games to increase their
popularity the most in relative terms were Keno, the
eInstants, Football Pools, and Viking Lotto.
EINSTANTS HAVE FOUND THEIR PLACE
Finns have been happy to welcome Veikkaus’
eInstants. They posted record-high sales in 2007,
a total of EUR 17.5 million (+107.0%). Our instant
portfolio on the net included many newcomers, such
as the Hobby eInstants in the summer, the Deal or
No Deal eInstant, and the Christmas eInstant. The
new Lucky Words eInstant, which is also available as
an ordinary scratchcard, soon made it to one of the
most popular eInstants.
In the year under review, many new ordinary
scratchcards were also introduced. To celebrate
the Eurovision Song Contest, which was hosted
by Finland, we launched the Eurovision Instant in
the spring, and the new Pop Songs Instant and the
Fabulous Land Instant offered games where the
players could reveal names of well-known pieces
of music by scratching. In the autumn, Veikkaus
took a leap to the world of TV entertainment, when
the scratchcard version of the Deal or No Deal
Instant was introduced. The Christmas game supply
was supplemented with a new Christmas Instant
containing an additional draw. The winners in the
additional draw were entitled to participate in the
Christmas Calendar TV game show, where each of
them won a sum between EUR 500 and 100 000.
Of all the traditional scratchcards, Finns favoured
Casino Instant.
GAMING LICENCE AMENDED AND
PAYOUT PERCENTAGES RAISED
The amended gaming licence became effective for
instant games and Football Pools in February 2007.
Along with it, the payout percentages were raised
from a fixed 45 to a varying percentage between
45 and 60. The new payout percentages were
introduced gradually, as new batches of instant
games were launched.
At the same time, the game terms of Football Pools
were reformed, and the payout percentage was
raised to 55. Football Pools was the first game in
Veikkaus game family and all our gaming is, in fact,
based on it. The improved game terms boosted the
popularity of Football Pools, too. In 2007, Finns
played Football Pools for a total of EUR 58.3 million
(+16.5%).
The rules of Veikkaus’ off-track horse betting
games were also updated in September. Their
payout percentage was raised from 60 to 65, and
the jackpots were made bigger.
SKILLED SPORTS GAMES PLAYERS
REWARDED FOR THEIR KNOWLEDGE
Besides providing games, Veikkaus organized two
Finnish Championships in sports games in 2007, in
V75 Off-track Horse Betting and Football Pools.
The competition for off-track horse betting fans was
arranged in April and May and over 8 000 players
took part in it. The Finnish Championships in Football
Pools, arranged in the autumn, attracted around
24 000 football fans. Both competitions offered
pleasant prizes to the fans: in the off-track horse
betting competition, ten of the best participants
won a trip to a major trotting event in Paris, whereas
in the Football Pools Championships, they were
awarded a trip to a Premier League match in Britain.
Economic responsibility
43
SECURE GAMING ENVIRONMENT BENEFICIAL TO ALL
Securing the players’ legal protection and prevent-
WLA-SCS:2006), and Inspecta Oy, which audits our
Finland and in the rest of Europe in the year under
ing abuse and crime justify the organization of
compliance with the Information security standard
review.
gaming in accordance with the exclusive right
ISO 27001:2005 (previously BS 7799-2:2002). In
system. Finns can play Veikkaus games safely, since
2007 DNV conducted one follow-up audit related
In the years 2005 and 2006, EL and UEFA made an
we comply with multiple monitoring and control sys-
to the WLA certificate, with the conclusion that
agreement with WLA and FIFA to exchange infor-
tems in our operations, and our information security
Veikkaus’ security system continues to fulfil the
mation in cases of suspected fraud. The cooperation
is certified. Further, our games are closely monitored
requirements of the WLA standard. Following the
continues between both the umbrella organizations
by the Finnish authorities.
ISO 27001 audit, carried out by Inspecta Oy in the
and the national gaming organizations, as agreed
year under review, Veikkaus turned into one of
previously. In spring 2007 the European national
EXTERNAL SUPERVISION
the first Finnish companies to merit the ISO/IEC
gaming organizations signed the Sports Betting
GUARANTEES RELIABILITY
27001:2005 certificate.
Standards of EL, defining the prevention of the risks
Veikkaus’ gaming activities are supervised by the
Lottery and Firearms Administration Unit of the
related to gaming.
*
For further information, see www.world-lotteries.org
Ministry of the Interior. The Ministry also approves
In the year under review, Veikkaus exchanged infor-
the rules of the games and appoints the supervisors
INTERNATIONAL SECURITY COOPERATION
mation with the other EL members regularly.
who control the draws and verify that the rules are
BETWEEN GAMING ORGANIZATIONS
We adhere to the respective practices as regards
complied with. Our entire drawing equipment, in-
In spite of careful supervision, gaming always
the betting objects from the Finnish ball game
cluding the legendary Lotto draw machine, is under
involves risks. We do not have an infallible way
series.
the custody of the supervisors, instead of being
to prevent criminal ventures even in the gaming
controlled by Veikkaus. The supervisors also control
business.
the results of the pools and betting games, as well
as the number of prizes.
VEIKKAUS AND ITS RETAILERS
Veikkaus takes into account both the risks involved
A player’s identity must be verified if the stake or
in its own operations and those involved in its
several interlinked stakes s/he places exceed a total
Veikkaus’ extensive security system also ensures
partnerships. We monitor the distribution of stakes
of EUR 3 000. Further, although the euro limit is not
the quality of our activities. We comply with a
carefully, and follow the sports events to which
exceeded, a report must always be filed in cases
comprehensive risk management system (ERM).
our betting objects are related in order to spot pos-
of suspected misuse. Veikkaus and its retailers
The ERM framework describes the risk manage-
sible deviations. Veikkaus’ supervision and control
are under obligation to report suspected cases of
ment processes in the company, together with the
systems will give the alarm if they detect clear
money laundering to the authorities. The preven-
related responsibilities and procedures. The ERM
deviations in, e.g., game sales. If we notice that, e.g.,
tion of money laundering and the coordination of
framework is integrated in the planning processes
one betting object attracts exceptionally big bets,
the related preventive measures belong under the
of the company’s activities in a way which ensures
we can close the object.
Centre for Investigation of Money Laundering of the
National Bureau of Investigation.
a regular and many-sided evaluation of the risks inherent in the business objectives and the company’s
In practice, the gaming organizations notify each
preparedness for tackling them.
other and the football organizations if they detect
exceptional gaming behaviour in matches belonging
44
MONEY LAUNDERING ACT OBLIGES
The external auditors of the standards are Det
under the supervision of UEFA and FIFA. Moreover,
Norske Veritas (DNV), which audits Veikkaus’
the gaming companies of different countries coop-
compliance with the World Lottery Association
erate closely in security matters. Suspected cases
Security Standards WLA-SCS 2003* (in continuation,
of fraud in football matches inspired discussion in
Economic responsibility
Meet a Finn to have won
MADAMA BUTTERFLY
MADE AN IMPRESSION
Pekka Särkkä from Helsinki had the chance to
TOUR OF THE OPERA HOUSE
enjoy Madama Butterfly at the Finnish National
EYE-OPENING
Opera in January 2008, after having won a free
There were fifteen lucky winners of the Golden
en
admission in the Golden Tickets lottery, arranged
Tickets draw at the Finnish National Opera to see
between the holders of Veikkaus Cards. Särkkä was
Madama Butterfly. The prize also included a tour
our of
totally taken by surprise when he heard that he had
the Opera House and an overnight stay at a hotel
otel
won the tickets.
in Helsinki.
– When they called me and told I had won, I thought
– This was the first time for me to have stayed
d
it was a prank call. But then we talked a little with
overnight at a hotel in Helsinki. It was a fun experixperi-
the caller and I understood that it’s for real, says the
ence, says the winner from Helsinki, smiling.
happy winner.
Pekka Särkkä says one of the highlights of the
e
Pekka plays Lotto and Viking Lotto randomly
evening was the tour of the Opera House.
through Veikkaus’ internet gaming service.
– The tour made me realize what a great organization
zation
– I only play randomly. And I didn’t even know that
the opera is. On the stage, we got to see how much
uch
there was such a thing as the Golden Tickets draw.
technology and electronic equipment a show requires.
quires.
TO M E
’ CUS
K AU S
S
VE IK
IC KE T
EN T
G O LD
NE
R BE
F IT S
N
A F IN
IN .
TO W
I’ve won small prizes in Lotto every now and then,
but never anything bigger, he describes his own
Once on the stage, the winners also got to tryy their
playing.
own singing skills.
– I hummed a nursery rhyme, says Pekka, laughing.
Before the opera, the Golden Tickets winners had
the chance to meet Tenor Jyrki Anttila, who told
them about how he prepared for the night’s show.
Economic responsibility
45
INTERNATIONAL OPERATING ENVIRONMENT
A gaming company operating on the basis of an
It has also favoured the member states’ right to
In May 2007 the Supreme Administrative Court of
exclusive right has a great responsibility. Veikkaus
limit cross-border game supply. In March 2007 the
Finland issued a decision on the complaint filed by
provides Finns with a safe and reliable gaming
European Court of Justice issued a preliminary ruling
Ladbrokes after its application for a gaming licence
environment, together with a chance to win money.
on betting activities in Italy. Essentially, the ruling
had been rejected in Finland. The Supreme Adminis-
A beneficial consequence of the exclusive right
meant clear support to national discretion in gaming
trative Court stated in its decision that the Finnish
system is that Veikkaus’ proceeds are channelled to
issues.
Council of State had rejected Ladbrokes’ application because Veikkaus had already been granted a
the benefit of arts, sports, science, and youth work.
respective licence as an exclusive right.
The euros spent on our games do not flow out of
The European Commission sent a Reasoned Opinion
the country, but are used to support the wellbeing
to Finland, together with two other EU Member
of Finns – over one million euros every day.
States. It concerned the organization of sports bet-
ACTIVE INTERNATIONAL ENGAGEMENT
ting and Football Pools. The Reasoned Opinion was
Gaming has a strong foothold in society, although
Veikkaus needs to be able to offer products inter-
a sequence to the Letter of Formal Notice which
the European system of the exclusive right is under
esting enough to make Finns want to keep playing
the Commission sent to Finland in 2006, based
systematic attacks. Extensive international coop-
legally operated and controlled games. At the same
on complaints concerning the national exclusive
eration has a central influence on the future of the
time, however, we must take into account all the
right applied to betting games in Finland. Finland
national exclusive right system.
possible security factors.
sent its response to the Commission in May. We are
NATIONAL SYSTEM PRAISED
awaiting a comment on Finland’s situation from the
Veikkaus is actively involved in the European Asso-
Commission in 2008.
ciation (European Lotteries, EL) and the worldwide
Although the gaming systems of different countries
umbrella organization (World Lottery Association,
are not identical, their basis is the same: the
NORDIC COUNTRIES IN FAVOUR
WLA). Veikkaus’ CEO Risto Nieminen is the Vice
exclusive right system is prevalent in Europe, as
OF THE EXCLUSIVE RIGHT
Chairman of WLA’s Executive Committee. In June
well as elsewhere in the world. The overwhelming
In Finland, just as in Sweden, Norway, and Denmark,
2007 Veikkaus’ Executive Vice President Jussi
majority of the EU Member States are in favour
the national courts of justice have been processing
Isotalo was appointed a member and Vice President
of the organization of gaming on the basis of the
lawsuits related to gaming activities in the past
of the EL Executive Committee.
national systems.
three years. In all cases the rulings have been incontestably in favour of the exclusive right principle,
In 2006 the European Parliament decided to
accepting the operations of the national gaming
exclude gaming from the scope of the Services
organizations.
Directive. Prior to that, the EU Member States had
expressed their view that the directive should
not be applied to gaming. Thus, there is a uniform
opinion that gaming-related decisions should be
made at the national level even in the future. Gaming is not subject to special regulation within the
European Union.
The European Court of Justice has issued several
rulings on gaming activities. Not once has it questioned the basis of the exclusive right system.
46
Economic responsibility
INTERNATIONAL AGREEMENTS ON
RESPONSIBLE GAMING SIGNED BY VEIKKAUS
• WLA Responsible Gaming Principles 2006
• WLA Responsible Gaming Framework 2006
• EL Responsible Gaming Standards 2007
• EL Code of Conduct on Responsible Sports Betting 2007
In Veikkaus’ view, the most important task of
The member lotteries of European Lotteries (EL)
the international organizations is to promote the
signed the association’s Responsible Gaming Stand-
interests of their members, defending the principle
ards in May 2007. Their objective is to promote
of the exclusive right at the national level. For this
responsible operations at the European level and
purpose, comprehensive exchange of information,
to set even higher objectives to gaming at the
Schindler
1994
open mutual communication and regular meetings
European level than in the world-wide extent. At
Läärä
1999
between specialists in the field are important.
the same time, the members signed the EL Code
Zenatti
1999
of Conduct on Responsible Sports Betting. This
Anomar
2003
In February 2006 WLA member organizations
agreement set the guidelines for several important
Gambelli
2003
signed a joint document containing the principles
principles and practices of responsibility.
Lindman
2003
Placanica
2007
of responsible gaming activities*. In the year
under review, the WLA members having signed
In 2007 the Nordic lotteries, too, took steps to
the responsible gaming framework conducted a
promote their cooperation on matters of social re-
self-evaluation of their operations on a scale of 1 to
sponsibility. The state lotteries of Denmark, Finland,
4. Veikkaus, just as the other Nordic WLA members,
Iceland, Norway, and Sweden set up a special Nordic
which had been among the first lotteries to sign
CSR working group.
RULINGS BY THE EUROPEAN
COURT OF JUSTICE
the framework, rated themselves in the highest
grade-four category. WLA is planning to implement
Whole version of the principles available on the internet at
www.european-lotteries.org
*
4 FIELDS OF GAMING
an audit of the self-evaluations in 2008.
Economic responsibility
47
In Veikkaus’ view, the most important task of
The member lotteries of European Lotteries (EL)
the international organizations is to promote the
signed the association’s Responsible Gaming Stand-
interests of their members, defending the principle
ards in May 2007. Their objective is to promote
of the exclusive right at the national level. For this
responsible operations at the European level and
purpose, comprehensive exchange of information,
to set even higher objectives to gaming at the
Schindler
1994
open mutual communication and regular meetings
European level than in the world-wide extent. At
Läärä
1999
between specialists in the field are important.
the same time, the members signed the EL Code
Zenatti
1999
of Conduct on Responsible Sports Betting. This
Anomar
2003
In February 2006 WLA member organizations
agreement set the guidelines for several important
Gambelli
2003
signed a joint document containing the principles
principles and practices of responsibility.
Lindman
2003
Placanica
2007
of responsible gaming activities*. In the year
under review, the WLA members having signed
In 2007 the Nordic lotteries, too, took steps to
the responsible gaming framework conducted a
promote their cooperation on matters of social re-
self-evaluation of their operations on a scale of 1 to
sponsibility. The state lotteries of Denmark, Finland,
4. Veikkaus, just as the other Nordic WLA members,
Iceland, Norway, and Sweden set up a special Nordic
which had been among the first lotteries to sign
CSR working group.
RULINGS BY THE EUROPEAN
COURT OF JUSTICE
the framework, rated themselves in the highest
grade-four category. WLA is planning to implement
Whole version of the principles available on the internet at
www.european-lotteries.org
*
4 FIELDS OF GAMING
an audit of the self-evaluations in 2008.
Economic responsibility
47
LOTTO GAMES
LOT TO
Life could be different.
Lotto – a game of big dreams, which has
retained its position as the Finnish favourite for
Special events in Lotto’s celebration week
in 2007 Jackpot amounted to at least EUR 2 million
Launched in 1971
almost four decades.
Game turnover EUR 419.8 million (-2.3%) in 2007
Viking Lotto – people in the Nordic countries
DEVELOPMENT OF
TURNOVER EUR MILLION
388
421 422
OTHER DRAW GAMES
Every day, some of us find the numbers of their lives.
430 420
500
Keno came to Finland in 2002 and made it
400
300
Average expenditure EUR 80 in 2007
every Wednesday. The Viking Lotto numbers
Largest prize EUR 4.5 million in 2007 (round 13/07)
have been drawn in Hamar, Norway since 1993.
Largest prize ever EUR 5.7 million (round 45/04)
Special events in 2007: Over 100,000 prizes
are distributed in Keno every day.
daily game, Keno offers excitement to people
Launched in 2002
every day.
Game turnover EUR 294.5 million (+9.6%) in 2007
200
Average expenditure EUR 56 in 2007
(rounds 30/07 and 50/07)
Number of prizes 38.5 million in 2007
67
72
74
80
85
500
300
200
Share of all gaming 6.1% in 2007
Average expenditure EUR 16 in 2007
Largest prize EUR 3.28 million in 2007 (round 31/07)
Norway; Finland: EUR 1.34 million (round 12/07)
TURNOVER OF LOTTO GAMES
EUR MILLION
Largest prize ever EUR 6.1 million (round 33/05) Denmark,
EUR 2.0 million (round 41/2002) Finland
100
0
2003 2004 2005 2006 2007
TURNOVER OF OTHER GAMES
EUR MILLION
Number of prizes 2.9 million in 2007
455
494 496
508 505
272
LOT TO
500
292 315
343 371
500
SATURDAY JOKER
VIKING LOT TO
400
WEDNESDAY JOKER
KENO
400
MEDALS GAME
VEIKK AUS BINGO
300
300
200
200
100
100
0
0
2003 2004 2005 2006 2007
200
100
0
2003 2004 2005 2006 2007
SATURDAY JOKER
MEDALS GAME
WEDNESDAY JOKER
VEIKK AUS BINGO
400
Launched in 1993
Game turnover EUR 85.1 million (+9.1%) in 2007
300
Largest prize ever EUR 1 million (round 41/05)
2003 2004 2005 2006 2007
Special events in 2007: two jackpots to both
Varsinais-Suomi in south-western Finland and
Päijät-Häme in southern Finland.
400
Largest prize EUR 400,000 in 2007
100
0
Nordic Wednesday night favourite.
269 295
Share of all gaming 21.2% in 2007
Number of prizes 6.5 million in 2007
VIKING LOT TO
198 220 246
500
quickly to our second most popular game. As a
Share of all gaming 30.2% in 2007
and Estonia wait for a joint jackpot to be drawn
DEVELOPMENT OF
TURNOVER EUR MILLION
KENO
2003 2004 2005 2006 2007
LOTTO GAMES
LOT TO
Life could be different.
Lotto – a game of big dreams, which has
retained its position as the Finnish favourite for
Special events in Lotto’s celebration week
in 2007 Jackpot amounted to at least EUR 2 million
Launched in 1971
almost four decades.
Game turnover EUR 419.8 million (-2.3%) in 2007
Viking Lotto – people in the Nordic countries
DEVELOPMENT OF
TURNOVER EUR MILLION
388
421 422
OTHER DRAW GAMES
Every day, some of us find the numbers of their lives.
430 420
500
Keno came to Finland in 2002 and made it
400
300
Average expenditure EUR 80 in 2007
every Wednesday. The Viking Lotto numbers
Largest prize EUR 4.5 million in 2007 (round 13/07)
have been drawn in Hamar, Norway since 1993.
Largest prize ever EUR 5.7 million (round 45/04)
Special events in 2007: Over 100,000 prizes
are distributed in Keno every day.
daily game, Keno offers excitement to people
Launched in 2002
every day.
Game turnover EUR 294.5 million (+9.6%) in 2007
200
Average expenditure EUR 56 in 2007
(rounds 30/07 and 50/07)
Number of prizes 38.5 million in 2007
67
72
74
80
85
500
300
200
Share of all gaming 6.1% in 2007
Average expenditure EUR 16 in 2007
Largest prize EUR 3.28 million in 2007 (round 31/07)
Norway; Finland: EUR 1.34 million (round 12/07)
TURNOVER OF LOTTO GAMES
EUR MILLION
Largest prize ever EUR 6.1 million (round 33/05) Denmark,
EUR 2.0 million (round 41/2002) Finland
100
0
2003 2004 2005 2006 2007
TURNOVER OF OTHER GAMES
EUR MILLION
Number of prizes 2.9 million in 2007
455
494 496
508 505
272
LOT TO
500
292 315
343 371
500
SATURDAY JOKER
VIKING LOT TO
400
WEDNESDAY JOKER
KENO
400
MEDALS GAME
VEIKK AUS BINGO
300
300
200
200
100
100
0
0
2003 2004 2005 2006 2007
200
100
0
2003 2004 2005 2006 2007
SATURDAY JOKER
MEDALS GAME
WEDNESDAY JOKER
VEIKK AUS BINGO
400
Launched in 1993
Game turnover EUR 85.1 million (+9.1%) in 2007
300
Largest prize ever EUR 1 million (round 41/05)
2003 2004 2005 2006 2007
Special events in 2007: two jackpots to both
Varsinais-Suomi in south-western Finland and
Päijät-Häme in southern Finland.
400
Largest prize EUR 400,000 in 2007
100
0
Nordic Wednesday night favourite.
269 295
Share of all gaming 21.2% in 2007
Number of prizes 6.5 million in 2007
VIKING LOT TO
198 220 246
500
quickly to our second most popular game. As a
Share of all gaming 30.2% in 2007
and Estonia wait for a joint jackpot to be drawn
DEVELOPMENT OF
TURNOVER EUR MILLION
KENO
2003 2004 2005 2006 2007
SPORTS GAMES
FOOTBALL POOLS
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.
Special events in 2007: Football Pools went through
a reform, making the gaming terms better and jackpots bigger.
DEVELOPMENT OF
TURNOVER EUR MILLION
58
54
54
50
Share of all gaming 2007 4.2%
We have been selling instant tickets made of
paper in Finland for over 25 years. The first
400
Largest prize EUR 281,802 in 2007(round 10/07)
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
NATURE INSTANT
market for over twenty years.
100
Largest prize ever EUR 539,220 (round 51/2003)
Number of prizes 928,000 in 2007
CHRISTMAS INSTANTS
instant game was Ässä Instant, launched in 1981
Average expenditure EUR 11 in 2007
OFF-TRACK HORSE BETTING
CASINO INSTANT
58
500
Launched in 1940
Game turnover EUR 58.3 million (+16.5%) in 2007
INSTANT GAMES
MINIÄSSÄ INSTANT
EINSTANTS
0
2003 2004 2005 2006 2007
EInstants have been offered since 2005 and
ever since, their popularity has been on constant
increase. In 2007, the turnover of eInstants
FIXED ODDS BET TING
Betting booster.
Special events in 2007: up to 300 weekly betting objects.
52
97
134 139 137
500
increased by 107%. We have also made the
game supply of the eInstants more versatile and
interactive.
400
ÄSSÄ INSTANT
Launched in 1993
Game turnover EUR 136.6 million (-2.1%) in 2007
300
Share of all gaming 9.8% in 2007
Average expenditure EUR 26 in 2007
200
Largest prize EUR 199,780 in 2007 (round 23/07)
Largest prize ever EUR 199,860 (round 35/06)
Number of prizes 2.0 million in 2007
100
0
2003 2004 2005 2006 2007
TURNOVER OF SPORTS GAMES
TURNOVER OF INSTANT GAMES
EUR MILLION
EUR MILLION
288
329 366
MULTIBET
369 365
500
LIVE BET TING
Finnish betting hit.
119
83
87
88
144
83
147 139
142 150
CASINO INSTANT
500
500
CHRISTMAS INSTANTS
MULTIBET
RESULT ODDS BET TING
Special events in 2007: largest prize ever won in 2007,
totalling EUR 642,000.
FOOTBALL POOLS
Launched in 1998
FIXED ODDS BET TING
400
300
WINNER ODDS BET TING
V-GAMES
200
NATURE INSTANT
400
400
300
300
MINIÄSSÄ INSTANT
LUCKY WORDS INSTANT
THEME INSTANTS
ÄSSÄ INSTANT
Game turnover EUR 82.6 million (-5.8%) in 2007
Share of all gaming 5.9% IN 2007
CHRISTMAS EINSTANT
200
NATURE EINSTANT
200
Average expenditure EUR 16 in 2007
Largest prize EUR 642,000 in 2007(round 42/07)
100
HOBBY EINSTANT
HOROSCOPE EINSTANT
100
100
FOOTBALL EINSTANT
Largest prize ever EUR 642,000 (round 42/07)
Number of prizes 388,000 in 2007
0
2003 2004 2005 2006 2007
LUCK Y WORDS INSTANT
LUCKY WORDS EINSTANT
0
2003 2004* 2005 2006 2007
* Multibet included in the figures of
Result Odds Betting until 2003.
DEAL OR NO DEAL EINSTANT
0
2003 2004 2005 2006 2007
ÄSSÄ EINSTANT
SPORTS GAMES
FOOTBALL POOLS
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.
Special events in 2007: Football Pools went through
a reform, making the gaming terms better and jackpots bigger.
DEVELOPMENT OF
TURNOVER EUR MILLION
58
54
54
50
Share of all gaming 2007 4.2%
We have been selling instant tickets made of
paper in Finland for over 25 years. The first
400
Largest prize EUR 281,802 in 2007(round 10/07)
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
NATURE INSTANT
market for over twenty years.
100
Largest prize ever EUR 539,220 (round 51/2003)
Number of prizes 928,000 in 2007
CHRISTMAS INSTANTS
instant game was Ässä Instant, launched in 1981
Average expenditure EUR 11 in 2007
OFF-TRACK HORSE BETTING
CASINO INSTANT
58
500
Launched in 1940
Game turnover EUR 58.3 million (+16.5%) in 2007
INSTANT GAMES
MINIÄSSÄ INSTANT
EINSTANTS
0
2003 2004 2005 2006 2007
EInstants have been offered since 2005 and
ever since, their popularity has been on constant
increase. In 2007, the turnover of eInstants
FIXED ODDS BET TING
Betting booster.
Special events in 2007: up to 300 weekly betting objects.
52
97
134 139 137
500
increased by 107%. We have also made the
game supply of the eInstants more versatile and
interactive.
400
ÄSSÄ INSTANT
Launched in 1993
Game turnover EUR 136.6 million (-2.1%) in 2007
300
Share of all gaming 9.8% in 2007
Average expenditure EUR 26 in 2007
200
Largest prize EUR 199,780 in 2007 (round 23/07)
Largest prize ever EUR 199,860 (round 35/06)
Number of prizes 2.0 million in 2007
100
0
2003 2004 2005 2006 2007
TURNOVER OF SPORTS GAMES
TURNOVER OF INSTANT GAMES
EUR MILLION
EUR MILLION
288
329 366
MULTIBET
369 365
500
LIVE BET TING
Finnish betting hit.
119
83
87
88
144
83
147 139
142 150
CASINO INSTANT
500
500
CHRISTMAS INSTANTS
MULTIBET
RESULT ODDS BET TING
Special events in 2007: largest prize ever won in 2007,
totalling EUR 642,000.
FOOTBALL POOLS
Launched in 1998
FIXED ODDS BET TING
400
300
WINNER ODDS BET TING
V-GAMES
200
NATURE INSTANT
400
400
300
300
MINIÄSSÄ INSTANT
LUCKY WORDS INSTANT
THEME INSTANTS
ÄSSÄ INSTANT
Game turnover EUR 82.6 million (-5.8%) in 2007
Share of all gaming 5.9% IN 2007
CHRISTMAS EINSTANT
200
NATURE EINSTANT
200
Average expenditure EUR 16 in 2007
Largest prize EUR 642,000 in 2007(round 42/07)
100
HOBBY EINSTANT
HOROSCOPE EINSTANT
100
100
FOOTBALL EINSTANT
Largest prize ever EUR 642,000 (round 42/07)
Number of prizes 388,000 in 2007
0
2003 2004 2005 2006 2007
LUCK Y WORDS INSTANT
LUCKY WORDS EINSTANT
0
2003 2004* 2005 2006 2007
* Multibet included in the figures of
Result Odds Betting until 2003.
DEAL OR NO DEAL EINSTANT
0
2003 2004 2005 2006 2007
ÄSSÄ EINSTANT
GOVERNANCE
Veikkaus’ mission is to generate versatile value to
Finnish society by operating games reliably and
responsibly. Veikkaus is a state-owned limited
company which belongs under the management
of the Finnish Ministry of the Interior. The State’s
responsibilities for the company’s operations are
determined solely by its share capital.
Veikkaus’ governance is based on the Lotteries
Act (1047/2001) and the gaming licence granted
to it by virtue of the Lotteries Act, as well as the
Finnish Companies Act and the company’s Articles
of Association. The Council of State has granted
Veikkaus a licence to operate lotteries, betting, and
pools games. The current gaming licence entered
into force on 1 January 2007 and will be effective
until the end of 2011.
GENERAL MEETING
Veikkaus’ superior administrative organ is the
General Meeting, which appoints the Board of Directors and the Supervisory Board in accordance with
the Articles of the Association. During the period
under review, two General Meetings convened,
which were attended by the Minister of Culture and
Sports as the representative of the Finnish State;
officials of the Ministry of Education, the chairmen
of the company’s Board of Directors and Supervisory
Board, as well as company representatives. Further,
two extraordinary General Meetings were held in
April and in May, where it was decided that Veikkaus
would make an additional return of funds to the
Ministry of Education from its contingency fund
and that a new member Mr. Jari Koskinen should be
the appointed to the Supervisory Board, Mr. Ilkka
Kanerva having given his notice.
NEARLY 30 GAMES
BOARD OF DIRECTORS
According to the Articles of Association of the company, the Board of Directors has five members at
the minimum and seven members at the maximum
in addition to the chairman. In 2007 the Board of
Directors had eight members including the chairman.
50
Annual report 2007
The General Meeting appoints the Chairman and
Vice Chairman of the Board for two calendar years
at a time. In accordance with a recommendation on
state companies issued by the Ministry of Trade and
Industry, none of the members of the Board belong
to the company’s executive management.
The tasks and responsibilities of Veikkaus’ Board are
determined according to the Finnish Companies Act.
The Board considers all issues that have far-reaching significance for the company. These include the
company’s strategic guidelines and core investments, the annual operation plan, and the budget,
as well as the monitoring of all of them. The Board
also appoints the CEO and the Vice Presidents, and
determines their salaries and other benefits.
The Board of Directors convened eight times in
2007, and the participation percentage averaged 92. The Board drafts an annual operations
timetable, with a schedule of the meetings and the
topics handled in them. At the end of the year under
review, the Board conducted a self-evaluation of its
activities.
The Board has two internal committees, the Audit
Committee and the Personnel Committee.
The Audit Committee
– assesses the financial reporting system and
– works to develop the financial statement and
annual report
– monitors the legality of the operations, the possible security risks, and the external auditing.
The Personnel Committee
– determines the general principles of compensations to the management and the staff,
– prepares the management’s employment contracts, and
– is in charge of the management’s development
plans.
The committees report to the Board on their regular
work. In 2007 the members of the Audit Committee were: Ari Lahti (Chairman), Jouko Ahtola, Leena
Paananen and Paula Tuomikoski. The members of
the Personnel Committee were Juha Niemelä (Chairman), Timo Kenakkala, Maija-Riitta Ollila and Matti
Saarinen. The Personnel Committee convened three
times and the Audit Committee seven times in the
course of the year under review.
In accordance with the stock market practices, the
members of the Board file annual insider reports, for
the evaluation of their independency. On the basis
of the reports, all the members of Veikkaus’ Board
are independent of the company.
SUPERVISORY BOARD
Veikkaus’ Supervisory Board has 14 members, one
of whom is a representative of the personnel. The
General Meeting elects the Supervisory Board for a
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 2007 the
Supervisory Board convened five times.
The Supervisory Board is responsible for supervising
the management of the company by the Board of
Directors and the CEO, and for issuing a statement
on the financial statement and Auditors’ report to
the General Meeting.
COMPANY MANAGEMENT
The CEO is in charge of the management and
supervision of the company’s business operations
in accordance with the Finnish Companies Act and
the strategy confirmed by the company’s Board of
Directors. The Executive Team assists the CEO in
this task. During the year under review, Veikkaus’
Executive Team consisted of seven members in
addition to the CEO. The Executive Team convened
34 times in 2007.
GOVERNANCE
Veikkaus’ mission is to generate versatile value to
Finnish society by operating games reliably and
responsibly. Veikkaus is a state-owned limited
company which belongs under the management
of the Finnish Ministry of the Interior. The State’s
responsibilities for the company’s operations are
determined solely by its share capital.
Veikkaus’ governance is based on the Lotteries
Act (1047/2001) and the gaming licence granted
to it by virtue of the Lotteries Act, as well as the
Finnish Companies Act and the company’s Articles
of Association. The Council of State has granted
Veikkaus a licence to operate lotteries, betting, and
pools games. The current gaming licence entered
into force on 1 January 2007 and will be effective
until the end of 2011.
GENERAL MEETING
Veikkaus’ superior administrative organ is the
General Meeting, which appoints the Board of Directors and the Supervisory Board in accordance with
the Articles of the Association. During the period
under review, two General Meetings convened,
which were attended by the Minister of Culture and
Sports as the representative of the Finnish State;
officials of the Ministry of Education, the chairmen
of the company’s Board of Directors and Supervisory
Board, as well as company representatives. Further,
two extraordinary General Meetings were held in
April and in May, where it was decided that Veikkaus
would make an additional return of funds to the
Ministry of Education from its contingency fund
and that a new member Mr. Jari Koskinen should be
the appointed to the Supervisory Board, Mr. Ilkka
Kanerva having given his notice.
NEARLY 30 GAMES
BOARD OF DIRECTORS
According to the Articles of Association of the company, the Board of Directors has five members at
the minimum and seven members at the maximum
in addition to the chairman. In 2007 the Board of
Directors had eight members including the chairman.
50
Annual report 2007
The General Meeting appoints the Chairman and
Vice Chairman of the Board for two calendar years
at a time. In accordance with a recommendation on
state companies issued by the Ministry of Trade and
Industry, none of the members of the Board belong
to the company’s executive management.
The tasks and responsibilities of Veikkaus’ Board are
determined according to the Finnish Companies Act.
The Board considers all issues that have far-reaching significance for the company. These include the
company’s strategic guidelines and core investments, the annual operation plan, and the budget,
as well as the monitoring of all of them. The Board
also appoints the CEO and the Vice Presidents, and
determines their salaries and other benefits.
The Board of Directors convened eight times in
2007, and the participation percentage averaged 92. The Board drafts an annual operations
timetable, with a schedule of the meetings and the
topics handled in them. At the end of the year under
review, the Board conducted a self-evaluation of its
activities.
The Board has two internal committees, the Audit
Committee and the Personnel Committee.
The Audit Committee
– assesses the financial reporting system and
– works to develop the financial statement and
annual report
– monitors the legality of the operations, the possible security risks, and the external auditing.
The Personnel Committee
– determines the general principles of compensations to the management and the staff,
– prepares the management’s employment contracts, and
– is in charge of the management’s development
plans.
The committees report to the Board on their regular
work. In 2007 the members of the Audit Committee were: Ari Lahti (Chairman), Jouko Ahtola, Leena
Paananen and Paula Tuomikoski. The members of
the Personnel Committee were Juha Niemelä (Chairman), Timo Kenakkala, Maija-Riitta Ollila and Matti
Saarinen. The Personnel Committee convened three
times and the Audit Committee seven times in the
course of the year under review.
In accordance with the stock market practices, the
members of the Board file annual insider reports, for
the evaluation of their independency. On the basis
of the reports, all the members of Veikkaus’ Board
are independent of the company.
SUPERVISORY BOARD
Veikkaus’ Supervisory Board has 14 members, one
of whom is a representative of the personnel. The
General Meeting elects the Supervisory Board for a
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 2007 the
Supervisory Board convened five times.
The Supervisory Board is responsible for supervising
the management of the company by the Board of
Directors and the CEO, and for issuing a statement
on the financial statement and Auditors’ report to
the General Meeting.
COMPANY MANAGEMENT
The CEO is in charge of the management and
supervision of the company’s business operations
in accordance with the Finnish Companies Act and
the strategy confirmed by the company’s Board of
Directors. The Executive Team assists the CEO in
this task. During the year under review, Veikkaus’
Executive Team consisted of seven members in
addition to the CEO. The Executive Team convened
34 times in 2007.
The Board of Directors appoints Veikkaus’ CEO and
the Vice Presidents. All members of the Executive Committee file an annual stakeholder report
in accordance with the stock market practices.
On the basis of the reports, all members of the
Executive Team are independent of the company’s
stakeholders.
BENEFITS, INCENTIVES AND
COMPENSATION
The employees who joined Veikkaus before 1 January 1994 may retire at 63 years of age. The Board
members and company management do not enjoy
special benefits, except for the CEO’s and Executive
Vice President’s additional pension schemes (63
years/66%). Nor have the company executives been
granted option rights.
Board of Directors’ monthly and meeting compensations in 2007 (euro)
Monthly
compensations
Meeting
compensations
Chairman
1,400
240
Vice Chairman
1,200
240
Other members
1,000
240
2007
115,450
2006
125,360
Supervisory Board’s monthly and meeting compensations in 2007 (euro)
Monthly
compensations
Meeting
compensations
1,000
200
Chairman
Veikkaus has an incentive scheme that covers the
entire personnel. The scheme includes the discretionary performance-based bonuses to the salaries,
special perquisites, and performance incentives.
The performance incentive is an annual one-time
payment based on the achievement of the strategic
goals and success of the company. The objectives
and standards of the various activities and units
are determined as the operations are planned. The
achievement of the objectives is assessed at the
end of the financial year, and the amount of the
incentive is determined according to the annual
salary of each employee. The maximum incentives
vary between 7% and 37.5% of the salary according
to the personnel group, and in order that the incentive can be paid in whole, all the objectives must be
attained.
The compensations to the Executive Team and the
performance-based bonuses to the entire staff are
determined by Veikkaus’ Board of Directors. The
special perquisites and performance rewards to the
staff are determined by the company’s salary team,
subject to an approval by the CEO.
Total
compensations
Vice Chairman
600
200
Other members
500
200
Total
compensations
2007
88,667
2006
97,606
Salaries, wages and other benefits granted to company management (euro)
CEO
Other members of the Executive Team
2007
2006
326,856*
304,303*
1,137,031*
1,054,734*
* Includes the performance incentive in accordance with the new compensation system
Compensations to the auditors (euro)
2007
2006
Audit compensations
40,383
66,542
Other services
52,881
51,309
Annual report 2007
51
SUPERVISION AND RISK MANAGEMENT
By virtue of the Lotteries Act (1047/2001), the
lottery, pools and betting operations conducted
by the company are supervised by the Ministry of
the Interior. The Ministry confirms the rules of the
games. Player complaints related to prize payout are
processed by the Ministry, which issues recommended decisions on them. In 2007 a total of 38 recommended decisions were issued, as compared with
78 in 2006. The gaming activities are supervised by
the official supervisors appointed by the Ministry.
The official supervisors also confirm the results of
the games and the prizes on each round.
Since the games are supervised from outside of
the company, even the company’s staff can play
Veikkaus games. As regards the staff’s participation in Veikkaus games, specific instructions are
followed, which include general guidelines and
forbid certain staff groups to play fixed-odd betting
games and instant lotteries.
In accordance with the company’s Articles of Association, the General Meeting appoints two regular
auditors. One of them must be an auditor or audit
firm authorised by the Central Chamber of Commerce (APA auditor or APA audit firm). At the moment, this task is carried out by the audit firm KPMG
Oy Ab. The auditors are chosen through a bidding
process, and appointed to perform their task until
further notice, in accordance with the company’s
Articles of Association. The auditors report to the
Board of Directors’ Audit Committee.
The company’s internal audit evaluates the sufficiency, reliability and effectiveness of the process
of risk management, supervision and management,
in accordance with the confirmed operating principles. Further, the objective of the internal audit is
to develop control systems related to management,
ensuring legality and preventing abuse. The internal
audit is conducted by a person nominated by the
company, together with an external partner in cooperation. In 2007, the external partner was Ernst &
52
Annual report 2007
Young Oy. The internal auditors work directly under
the CEO, reporting to the Audit Committee, and
covering the entire organization.
Veikkaus’ Executive Team is in charge of the
company’s risk management. It ensures that the risk
management process is operated smoothly and makes
decisions on the management of individual risks. In
this task, the Executive Team is assisted by a specially
appointed risk group, which develops the risk management process, and coordinates risk evaluation and the
operation of the management measures.
Veikkaus complies with the comprehensive risk
management system Enterprise Risk Management
(ERM). The ERM framework describes the risk management process in use in the company, together
with the related responsibilities and procedures. It
is integrated in the planning processes of the company’s activities in a way which ensures the regular
and comprehensive assessment of the risks related
to the business objectives and the company’s
preparedness for tackling them.
The external auditors of the standards are Det
Norske Veritas (DNV), which audits the company’s
compliance with the World Lottery Association
Security Standards WLA-SCS:2003 (in continuation
WLA-SCS:2006), and Inspecta Oy, which audits the
compliance with the Information security standard
ISO 27001:2005 (former BS 7799-2:2002
standard). In 2007 DNV conducted one follow-up
audit related to the WLA certificate. The audits
showed that Veikkaus’ security system fulfils the
requirements of the WLA standard. Following an ISO
27001 audit, conducted by Inspecta Certification in
the year under review, Veikkaus became one of the
first companies in Finland to be granted the ISO/IEC
27001:2005 certification.
GENERATION AND SUPERVISION OF
FINANCIAL ADDITIONAL VALUE
By operating games in a socially responsible way
Veikkaus generates value to Finnish society. The
company’s profits are returned to the customers –
to Finnish society – to be used for the benefit of
arts, sports, science and youth work. At the same
time, Veikkaus responds to the demand of games
in Finland with ethically planned and regulated
offerings.
Veikkaus aims at increasing its profit moderately
in spite of the competition which is becoming
tougher and involving more and more operators. The
medium-term estimate of the company’s owner is
that the company’s return of proceeds recorded in
the State Budget will increase by an average of 2%
a year.
The strategy approved by Veikkaus’ Board of Directors serves as the basis for an annual operations
plan and budget, the realisation of which the Board
supervises with the help of tools related to the
management system. The return objectives are
followed by monthly result reports and prognoses.
Comparable information on the development of the
gaming industry, especially from the other Nordic
countries, is also analysed regularly.
The European Union requires that all public
companies within the EU should draft their
financial statements in accordance with the IAS/
IFRS standards for financial statements from the
beginning of 2005. Although the requirement does
not concern Veikkaus, the company has decided to
voluntarily introduce the IFRS standard. Veikkaus
started the preparations for the introduction of the
IFRS standard in 2005, and the financial statement
in this report is the company’s second one to comply
with the new standard.
Further, the company complies, where applicable
to its activities, with the Recommendation for
corporate governance of listed companies issued by
Hex Oyj, the Central Chamber of Commerce, and the
Confederation of Finnish Industry and Employers (2
December 2003).
ORGANISATION
CEO
RISTO NIEMINEN
BUSINESS
DEVELOPMENT
Vice President,
Business Development
JARI VÄHÄNEN
LEGAL AND
INTERNATIONAL
AFFAIRS
PRODUCTION
Vice President,
Production
ESA VALTONEN
Depot and Logistics
Technology
Services
Security
GAMING BUSINESS
OPERATIONS
STRATEGY AND
PLANNING
Executive Vice President
Vice President,
Strategy and Planning
JUSSI ISOTALO
OLLI
SAREKOSKI
DREAM MARKET
Strategic Development
Internal Systems
Personnel Services
SPORTS MARKET
General Counsel
PEKKA ILMIVALTA
Legal Affairs
International Affairs
Internal Auditing
COMMUNICATIONS
AND SOCIAL
RESPONSIBILITY
Vice President,
Communications
ILKKA JUVA
Marketing Communications
and Sponsorship
Communications
TV Unit
Responsible Gaming
Graphic Design Unit
ENTERTAINMENT MARKET
Customer Relations
and Marketing
Product Management
Game System Development
Sales and Distribution
FINANCIAL
MANAGEMENT
Vice President,
Finances
MARILENE
MÄKIPÄÄ
Internal and External
Accounting
Accounts Ledger
Real Property
Services
Annual report 2007
53
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
b. 1946
b. 1956
M.Sc. (Econ.), Vuorineuvos (Finnish honorary title)
D.Soc.Sc
Dr.Sc.(Econ.), h.c.
Dr.Sc. (Tech.), h.c.
Fixed-term Professor, Helsinki School of Economics
Member of the Board since 10 October 2000;
Chairman of the Personnel Committee
Member of the Board since 1 January 2006,
Member of the Personnel Committee
Current memberships of other boards of
directors: M-real Oyj, Powerflute Oy
J O U KO A H T O L A
LEENA HARKIMO
b. 1952
b. 1963
M.Sc. (Econ.)
Diploma in Business Studies
Ministerial Adviser, Ministry of Social Affairs
and Health
Member of Parliament
Member of the Board since 1 January 2006,
Member of the Audit Committee
54
Annual report 2007
Member of the Board since 1 January 2008,
Member of the Personnel Committee
Current memberships of other boards of directors:
National Sports Council, Jokerit HC Oy,
The Swedish-Finnish Cultural Centre Hanasaari
MIK AEL INGBERG
R I I T TA K A I V O S O J A
b. 1951
Ph.D (Econ.)
Managing Director, Aktia Savings Bank plc
Member of the Board since 1 January 2008, Member of
the Personnel Committee
Current memberships of other boards of directors:
Aktia Kort & Finans Ab, (Chairman), Veritas Life
Insurance, (Chairman), Mercator Oy, Veritas Pension
Insurance, Luottokunta Oy, Oral Hammaslääkärit Oyj,
Esperi Care Oy, Samlink Oy, Transmitter Oy
b. 1957
ARI LAHTI
L E E N A PA A N A N E N
b. 1963
b. 1950
Lic. Soc. Science
M.Sc. (Econ.)
Managing Director, ICECAPITAL Securities Ltd.
Partner, Ovia Oy
Member of the Board since 1 January 2002,
Member of the Audit Committee
Member of the Board since 1 January 2000,
Member of the Audit Committee
Current memberships of other board of directors:
Beltton Group plc. (Chairman), Companies in the
ICECAPITAL Group
Current memberships of other board of directors:
A-Lehdet Oy, Kalevala Koru Oy, Lapponia
Jewellery Oy, Entre Marketing Oy, Hidas Oy
Master of Laws (trained on the bench)
Director General, Ministry of Education
Member of the Board since 1 January 2008,
Member of the Audit Committee
SUPERVISORY BOARD 2008-2009
BOARD OF DIRECTORS 2006-2007
Member of Parliament JARI KOSKINEN, Chairman
JUHA NIEMELÄ, Chairman, M.Sc. (Econ.), Dr.Sc. (Econ.), h.c., Dr.Sc. (Tech.), h.c.
Member of Parliament MERIKUKKA FORSIUS
MAIJA-RIITTA OLLILA, Vice Chairman, D.Soc.Sc
Member of Parliament JUKKA GUSTAFSSON
JOUKO AHTOLA, Ministerial Adviser
Member of Parliament TUOMO HÄNNINEN
TIMO KENAKKALA, Director
Member of Parliament HELI JÄRVINEN
ARI LAHTI, Managing Director
Member of Parliament JARI LEPPÄ
LEENA PAANANEN, M.Sc. (Econ.)
Member of Parliament HEIKKI A. OLLILA
MATTI SAARINEN, CEO
Member of Parliament SIRPA PAATERO
PAULA TUOMIKOSKI, Senior Adviser of Cultural Affairs
Member of Parliament AILA PALONIEMI
Member of Parliament JUHA REHULA
Member of Parliament MATTI SAARINEN
Sheer-metal worker KARI UOTILA
Member of Parliament ULLA-MAJ WIDEROOS
SUPERVISORY BOARD 2006-2007
Member of Parliament JARI KOSKINEN, Chairman
Member of Parliament MATTI SAARINEN, Vice Chairman
Member of Parliament EVA BIAUDET
Member of Parliament KAARINA DROMBERG
PERSONNEL REPRESENTATIVES
Member of Parliament JUKKA GUSTAFSSON
Operational Supervisor TEIJO LOIKKANEN
Member of Parliament KAUKO JUHANTALO
Business Development Manager RIKU SOININEN, deputy personnel representative
Member of Parliament JARI LEPPÄ
Member of Parliament MAIJA-LIISA LINDQVIST
SUPERVISORS
Member of Parliament MINNA LINTONEN
Chief Police Inspector REIJO HYYTIÄINEN
Member of Parliament AILA PALONIEMI
Administrative Officer HANNELE JUUSELA
Member of Parliament PIRKKO PELTOMO
Chief Police Inspector SEPPO JUVONEN
Member of Parliament IRJA TULONEN
Senior Officer KIRSI KOIVUNIEMI
Member of Parliament KARI UOTILA
Inspector General of the Police and Training Manager SEPPO KOLEHMAINEN
Police Chief AAPO NUOTIO
Chief Superintendent LEENA PIIPPONEN
Inspector General of the Police REIJO PÖYHÖNEN
Head of Press and Communication Services KAIJA UUSISILTA
Chief Inspector MARKUS VÄLIMÄKI
Deputy Police Chief RISTO ÄIJÄLÄ
AUDITORS
Authorised Public Accountant LASSE HOLOPAINEN, KPMG Oy Ab
Certified Accountant OSMO VALTONEN
Annual report 2007
55
EXECUTIVE TEAM
CEO
Executive Vice President
RISTO NIEMINEN
J U S S I I S O TA L O
b. 1951
b. 1947
Master of Arts
Diploma in Business and Administration
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
Member of the Executive Team since 1991
Member of the Executive Team since 1988
General Counsel
Vice President, Communications
P E K K A I L M I VA LTA
I L K K A J U VA
b. 1970
b. 1952
Master of Laws (trained on the bench)
Joined Veikkaus in 2000
Joined Veikkaus in 2003
Professional experience as an advocate and
positions in sports organisations
Professional experience as the Editor-in-chief of
Länsi-Savo newspaper, and as an Editor of, e.g.,
Uusi Suomi and Turun Sanomat newspapers
Member of the Executive Team since 2004
Member of the Excecutive Team since 2000
Vice President, Finances
Vice President, Strategy and Planning
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
b. 1950
b. 1965
M.Sc. (Econ.), Authorised Public Accountant
M.Sc. (Econ.)
Joined Veikkaus in 2002
Joined Veikkaus in 2003
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
Member of the Executive Team since 2003
Member of the Executive Team since 2002
56
Annual report 2007
Vice President, Production
Vice President, Business Development
E S A VA LT O N E N
J A R I VÄ H Ä N E N
b. 1952
b. 1965
B.Sc.
M.Soc.Sc
Joined Veikkaus in 1991
Joined Veikkaus in 1995
Professional experience includes positions
within Information Technology and
executive positions in software production
Professional experience as Betting Director and
Acting CEO of the Finnish Trotting and Breeding
Association Hippos
Member of the Executive Team since 1997
Member of the Executive Team since 2004
FINANCIAL STATEMENT 2007
Board of Directors’ report ...............................................................................
Income statement ...........................................................................................
Balance sheets ...............................................................................................
Cash-flow statement ......................................................................................
Changes in shareholders’ equity .....................................................................
Accounting principles .....................................................................................
58
62
63
64
65
66
Notes to the financial statements
1. Turnover by games and game groups ..................................................... 69
2. Financial result 2003–2007 ................................................................... 70
3. Other operating income ......................................................................... 70
4. Depreciations ........................................................................................ 70
5. Other operating expenses...................................................................... 71
6. Financial income and expenses .............................................................. 71
7. Tangible assets and depreciations ......................................................... 72
8. Intangible assets and depreciations ....................................................... 73
9. Investments .......................................................................................... 73
10. Investments held for sale ...................................................................... 74
11. Short-term receivables........................................................................... 74
12. Liquid assets ......................................................................................... 74
13. Share capital .......................................................................................... 74
14. Short-term liabilities .............................................................................. 75
15. Liabilities from employee benefits ......................................................... 75
16. Related party transactions .................................................................... 76
17. Contingent liabilities and amounts payable
on other leasing agreements .................................................................. 77
18. Signatures .............................................................................................. 77
19. List of accounting books and record formats ........................................... 77
Auditors’ report .............................................................................................. 78
Statement by the Supervisory Board .............................................................. 78
Annual report 2007
57
BOARD OF DIRECTORS’ REPORT 2007
TURNOVER
BY GAME GROUPS
EUR MILLION
1,159 1,261 1,316 1,361 1,391
1,400
OTHER DRAW GAMES
INSTANT GAMES
1,200
SPORTS GAMES
LOTTO GAMES
1,000
800
600
400
200
0
2003 2004 2005 2006 2007
GAME GROUPS’ REL ATIVE SHARE OF
TURNOVER IN 2007
SHARE FOR 2006 IN BR ACKETS
LOTTO GAMES
*
58
36.3% (37.3%)
SPORTS GAMES
26.2% (27.1%)
OTHER DRAW GAMES
26.7% (25.2%)
INSTANT GAMES
10.8% (10.4%)
Specified game by game on page 69
of the financial statement.
Financial report 2007
The year under review was the 67th year of
operations of Veikkaus Oy. The company’s economy
developed favourably during the period. Veikkaus
Oy attained a turnover of EUR 1 391.4 million,
the highest in the company’s history. This meant
an increase of EUR 30.2 million (+2.2%) over the
previous year.
The result of the financial year amounted to EUR
427.4 million (+4.8%), of which the company returns
EUR 397.7 million (+2.7%) to the Ministry of Education, to be distributed to Finnish arts, sports, science, and youth work. The result of the year under
review can be considered very good. In addition to
the return to the Ministry of Education the company
paid EUR 64.8 million of lottery tax (+3.0%) and a
total of EUR 18.1 million (+2.0%) of value added tax.
The game system reform, initiated in 2005, has
been the largest one-time investment in Veikkaus’
history. In 2007, new terminals were installed in
our points of sales, and the reform as a whole was
pursued according to plan. The reform will be complete at the beginning of October 2008. The total
investments in the reform will amount to
c. EUR 38.9 million.
KENO SHOWED GREATEST GROWTH
Veikkaus’ game selection included the following
games in the year under review: the lotto games
Lotto and Viking Lotto; the other online draw games
Joker, Keno, Medals Game and Veikkaus Bingo; the
sports games Live Betting, Multibet, Fixed Odds
Betting, Result Odds Betting, Winner Odds Betting;
the other sports games Football Pools, V5 and V75
Off-track Horse Betting and the other V-games; as
well as the instant games Casino Instant, Nature
Instant, Mini Ässä Instant, Lucky Words Instant,
Ässä Instant, the eInstants, the theme instants, and
Christmas Instant.
The games to increase the most in popularity were
Keno, the eInstants, Football Pools, and Viking Lotto.
Keno was played for EUR 294.5 million (+9.5%), the
eInstants for EUR 17.5 million (+107.0%), Football
Pools for EUR 58.3 million (+16.5%) and Viking
Lotto for EUR 85.1 million (+9.1%).
The turnover from lotto games totalled EUR 504.9
million, with a decrease of EUR 2.8 million (-0.6%)
over the previous year. The slight decrease in Lotto
followed especially from the number of jackpots
which were fewer than in the previous year. In all,
Lotto was played for EUR 419.8 million (-2.3%) during the year under review.
The turnover of the other online draw games
amounted to EUR 371.2 million, with an increase
of EUR 28.7 million (+8.4 %). Sports games posted
a turnover of EUR 365.2 million, i.e. EUR 3.9 million
(-1.1%) less than in the previous year. The turnover
of instant games, EUR 150.0 million was EUR 8.2
million (+5.7%) bigger than in 2006.
Lotto games represented 36.3% of the company’s
turnover (37.3% in 2006), whereas the share of
the other draw games was 26.7% (25.2%); that of
sports games 26.2% (27.1%); and that of instant
games 10.8% (10.4%).
OVER SEVEN HUNDRED
MILLION EUROS OF PRIZES
In 2007, Veikkaus paid out a total of EUR 713.0
million (+1.6 %) of prizes to players. The increase
resulted mainly from the growth of Veikkaus’
turnover.
Veikkaus’ new lottery licence entered into force
on 1 January 2007 and it will be effective until the
end of 2011. The lottery licence was amended as
of 15 February 2007. The amendment entailed a
change in the payout percentages of the instant
games from the fixed 45 percent to a variable
45-60 percent. The new payout percentages
were introduced step by step, as new batches of
tickets were released. As the gaming licence was
changed, the rules of Football Pools were also
altered by increasing the payout percentage from
45 percent to 55 percent in February 2007. At
the same time, the price per row in Football Pools
was raised by five cents to 25 cents. The objective
of the reform was to guarantee the status of the
game classic as a Finnish favourite even in the
future. In 2007 Football Pools was played for
EUR 58.3 million(+16.5%).
Veikkaus’ off-track horse betting games V75 and
V5 went through a reform in September 2007. Their
payout percentage was raised from 60 percent to
65 percent and the jackpots were made bigger. As
a result of the reform, the payout percentage of V5
was raised to EUR 370 000 and that of V75 to
EUR 150 000. The prices per row remained the
same; five cents for V75 and ten cents for V5.
Veikkaus V-games have boasted steady sales over
the past few years. In 2007 they were sold for EUR
52.1 million (+0.7%). The recent reforms have not increased the popularity of V5 and V75 to the degree
expected. In all, the turnover of the sports games
was smaller than in the previous year, and therefore
did not add to the prizes paid out to the players.
The commissions paid to retailers represented 5.6 percent of the turnover, totalling EUR 78.4 million (-2.4%).
The slight drop in the retail commissions resulted from
the increased popularity of internet gaming. The drawing and result information expenses were EUR 10.1
million (+4.4%). Game event cooperation cost a total
of EUR 10.0 million (+3.8%), whereas the expenses
arising from coupons and instant tickets amounted to
EUR 7.0 million (-4.2%). Veikkaus spent a total of EUR
9.9 million (-3.7%), i.e. 0.7 percent of the turnover on
product advertisement.
CUSTOMER IDENTIFICATION
BECOMING MORE GENERAL
In the year under review, Veikkaus continued to
invest strongly in the reinforcement of its model
of business operations, based on the company’s
customer focused strategy. Veikkaus’ offerings are
developed and differentiated to better meet the
needs of different customer groups. This entailed
considerable investments in, e.g., the reinforcement
of the customer data systems.
At the end of the year under review, customers
having registered as players in Veikkaus’ internet
service or holding a Veikkaus Card totalled
612 326 (+39%). Veikkaus games were played for
EUR 252 million (+22.8%) over the internet in the
year under review. This represented 18.1% of the
total turnover of the games.
Veikkaus Card, introduced in autumn 2006, is the most
prominent part of Veikkaus customer identity. At the
end of 2007, there were already a total of
280 000 card holders, whereas they had only
amounted to 90 000 at the beginning of January
2007. By showing their Veikkaus Cards whilst playing,
Veikkaus’ customers can be sure that the prizes are
paid securely and easily to their account. The players
are not rewarded for a large number of interactions,
nor are they granted bonuses. In March 2008 Veikkaus
Card replaces the printed Winnings to Bank Account
slips, which have been in use for a long time.
Veikkaus took part in the annual Finnish Excellence
Award competition for the first time in 2007. As
a newcomer Veikkaus attained a good result in
the large companies’ series and was granted the
“Recognised for Excellence in Europe” recognition.
Veikkaus was praised for, e.g., its way of paying
attention to and analysing customer-related data.
According to the evaluations Veikkaus recognizes
and understands its customers throughout the
organization. Further, the company has managed to
implement different changes well.
Veikkaus launched a Customer Benefit Programme
in spring 2007. The programme offers various
benefits to both retailers and customers. Taking
part in the customer benefit draws does not require
participation in the games. There is a new benefit
every month, and they have to do especially with
sports and arts. All the holders of Veikkaus Cards
are entitled to a free subscription of the Customer
Magazine X, if they wish.
The customers’ data protection and information
security are important for Veikkaus. A related
updating of Veikkaus data protection practices was
carried out in 2007, to make them correspond to
the reformed models of operating. The models have
been developed in cooperation with the Office of
the Data Protection Ombudsman.
RESPONSIBILITY COUNTS
IN VEIKKAUS’ OPERATIONS
In the year under review Veikkaus invested in the
promotion of responsible business activities. A core
justifying ground for the organization of gaming
according to the exclusive right principle is the
prevention of social detriments that may arise from
gaming. The measures taken to support responsible
gaming cost Veikkaus a total of EUR 3.1 million
in 2007. This includes all the concrete measures
Veikkaus has taken to promote responsible gaming
through its own business activities and in cooperation with its stakeholders. They cover the gaming
restrictions and age limit controls introduced as
part of the game system, and the reinforcement of
identified gaming. In addition to these measures,
Veikkaus made a payment to the Ministry for Social
Affairs and Health, and financed the helpline for
problem gamblers and their families and friends,
totalling EUR 400 000.
Veikkaus has developed a model for game analysis
in cooperation with the Finnish Slot Machine Association RAY. The model is used to analyse, e.g., the
availability and attractiveness of the games, and
their social features. All of Veikkaus’ current games
are analysed by using this model and it is applied in
all the company’s game development processes. The
classification model aims at the recognition of such
features in both the present products and the new
game ideas that may potentially lead to problem
gambling.
Veikkaus provides its customers with a safe channel
of gaming. This entails strong consumer protection
and the restriction of gaming as deemed necessary, including age and stake limits. The need for
restrictions varies from one game to another. As
part of Veikkaus’ responsible game offerings, more
tools for self-control of gaming were introduced at
the beginning of June 2007. With the new tools,
players can regulate gaming by themselves by
imposing daily, weekly, or monthly limits on their
gaming expenditure in euros. They can also impose
a self-ban on their gaming for the rest of the day. In
connection with the introduction of the new tools,
Veikkaus made playing via the internet gaming service subject to a daily gaming limit, with a maximum
of EUR 3 000 a day. In 2007 players made use of
the restriction options of one, seven, or thirty days
for a total of 3 341 times.
Veikkaus Card is part of the company’s responsible
gaming operations. It is granted to Finns of over 18
years of age, and it is personal and free of charge.
The data collected as people use their Veikkaus
Cards to play can be used for the purposes of
product and service development and sales support.
Veikkaus Card also enables the customers to follow
their gaming history at Veikkaus’ website.
In May 2007 Veikkaus signed the Responsible
Gaming Standards accepted by all of the member
companies of the European Lotteries and Toto
Association (EL). According to the framework, state
lotteries are committed to promote responsible
gaming, each on the basis of their specific national
conditions. For Veikkaus this entails, e.g., applying
ethical evaluation to product development and
marketing communications, as well as a more effective implementation and control of the gaming
restrictions. The standards also foreground the
importance of stakeholder cooperation and responsibility reports.
According to the survey “Companies and CSR”,
carried out by Marketing Radar in May 2007, Finns
think that Veikkaus manages its social responsibility
very well. Veikkaus was the third best company in
terms of economic responsibility out of the thirty
large companies rated in the survey, and the fifth
best in terms of environmental responsibility.
The CSR survey commissioned by Veikkaus in
June 2007 aimed at finding out how responsible
different companies were considered among Finns.
Veikkaus was rated the second best in the comparison of the companies’ management of social
responsibility. The survey showed that 67 percent
of Finns think Veikkaus operates more responsibly
Financial report 2007
59
than foreign gaming companies. The majority of
Finns were happy with the age limits imposed on
Veikkaus games.
sary. In addition, Veikkaus customer relations and
entertainment were allocated their own sections at
the website.
PRODUCT DEVELOPMENT AND RESEARCH
Veikkaus spent EUR 4.6 million on product development and research in the year under review. The
expenses did not show significant changes as
compared with the previous year, consisting of, e.g.,
research related to development of the offerings and the expenses of the internet games and
piloting in particular. The expenses did not include
investments.
Veikkaus’ research activities focused on the analysis
of customer behaviour, changing customer and
operating environment, use of products, corporate
image, and distribution channels of offerings in the
year under review. The research projects aimed at
forming a complete picture of the relations between
the customers, the market, and Veikkaus. Following
the syntheses made on the basis of the projects,
new packages of offerings meeting the customers’ needs were introduced. The largest research
projects conducted outside Veikkaus were the Atlas
consumer survey and Hermelin tracking, destined
to find out how Veikkaus is perceived among its
customers.
In the year under review new theme instants were
launched. Eurovision Instant, which was introduced
at the beginning of March, and Pop Songs Instant
and The Fabulous Land Instant, launched in June,
continued Veikkaus’ series of culture-focused
instants.
Veikkaus has invested strongly in the internet instants available at its website www.veikkaus.fi. The
new internet instants of the year were Lucky Words
Instant, Deal or No Deal Instant, Hobby Instant, and
Christmas Instant. The players have been happy
to welcome this new type of instant games: their
popularity increased by EUR 9.0 million (+107.0%)
over the previous year.
The contents at Veikkaus’ website were developed
to meet the players’ needs better in 2007. A special
“My Veikkaus” section was introduced, allowing the
players,
e.g., to follow their own gaming history and
700
make their gaming subject to restrictions, if necesPERSONNEL
FROM 2003 TO 2007
600
47
45
38
37
33
324 332 334 336 337
500
400
300
SECOND PHASE OF THE GAME
SYSTEM REFORM FINALIZED
During the ongoing game system reform, Veikkaus’
entire game system will be modernized. In the
second phase of the reform at the end of July 2007,
all points of sales were provided with modern online
terminals, and the data communications connections
of the retailer network were renewed. The nationwide network of terminals is the largest broadband
network built for one customer in Finland.
As the online terminals were changed, Veikkaus
made its service network more uniform and gave
up its separate system of instant game sales. This
simplified the sales network: from now on, Veikkaus’
customers have access to the same services at
every point of sales. At the end of 2007 Veikkaus’
products were sold at 3 114 points of sales.
During the year under review Veikkaus spent EUR
34.8 million (-9.7%) on investments, a significant
part of which were spent on the game system
reform. The demanding reform process aims at
ensuring Veikkaus’ ability to serve Finnish customers and society in compliance with high standards of
quality and responsibility even in the future.
Veikkaus and GTech signed a continued agreement
in December 2007, thus making use of the option
to continue the system supply agreement signed in
2004. According to the new agreement GTech will
be Veikkaus’ game system provider at least until the
end of 2013.
200
100
0
2003 2004 2005 2006 2007
PART-TIME
SALARIED
60
Financial report 2007
EMPLOYEES KNOW THE OBJECTIVES
AND ARE COMMITTED TO VEIKKAUS
At the end of 2007 Veikkaus had 337 salaried and
33 part-time employees, most of whom (94%) had
permanent employment contracts. In other words,
the total number of employees was 370, i.e. three
fewer employees as compared to the previous
year. Of the staff, 207 were women and 163 were
men.
In the year under review 27 new people were
recruited, whereas 10 retired. Further, 20 persons
gave their notice in 2007. The average turnover of
the personnel was thus 7.7% (8.7% in 2006).
The year 2007 meant further development and
implementation of Veikkaus’ model of operations,
which is based on the company’s customer relations
strategy. The staff’s work enjoyment was supported with, e.g., measures related to the enhancement
of working ability, by arranging various recreational
events and by improving internal communications.
On the average, Veikkaus’ employees were on sick
leaves for 6.4 days per person; there were five
work-related accidents.
A new collective bargaining agreement for the
period between 1 October 2007 and 28 February
2010 was signed in autumn 2007. The new agreement improves, e.g., the staff’s equal opportunities
by extending the maternity leave compensation
(the difference between the salary and the allowance paid by the Social Insurance Institution for the
first three months of the maternity leave) to cover
all the mothers who have been working at Veikkaus
for at least nine months before the maternity leave.
Previously, the benefit was only granted to mothers
who had joined Veikkaus before 1 January 1994.
Fathers are now also granted a six-day compensation equalling the difference between their salary
and the allowance paid by the Social Insurance
Institution.
Veikkaus has adopted an incentive scheme which
covers the entire staff. The staff policy also
involves regular objective and performance evaluation talks with all the employees. The professional
training focused on specialist skills in 2007. The
multidisciplinary training programme provided
Veikkaus’ specialists with facilities and tools to develop their managerial skills at an individual level.
The Game Academy, the training programme for
Veikkaus’ personnel, offered 61 different training
events in 2007. The Game Academy, which offers
training to support the employees in their various
tasks, focused on the processes of product development and customer relations management, as
well as IT skills in 2007. The staff’s know-how in
the lottery business was reinforced with a lecture
series titled “Trends of Gaming and the World of
Entertainment”.
In addition to the headquarters in Vantaa, Veikkaus
has sales offices in five other major cities in Finland:
Turku, Vaasa, Kuopio, Oulu, and Tampere, where there
is also a district office carrying out activities such as
customer service supporting internet gaming.
Security Standards WLA SCS 2003 (WLA-SCS:2006
in continuation), and Inspecta Sertifiointi Oy,
which audits the compliance with the information
security standard ISO 27001:2005 (former BS
7799-2:2002 standard).
In 2007 the company’s personnel expenses were
EUR 22.4 million, with an increase of 3.5% from
the previous year. The salaries represented EUR
17.8 million of this, whereas the indirect personnel
expenses were EUR 4.6 million.
THE PRESENT SYSTEM
ENJOYS WIDE SUPPORT
Although the gaming systems of different countries
differ from each other, they have a common basis:
society makes sure that the gaming business is
managed reliably, responsibly, and according to
high standards of quality. It is also society’s task to
channel gaming in the right way, to keep it good
entertainment and at a moderate level in proportion
to the players’ available funds.
A staff survey conducted in the autumn was
responded to by 79% of the personnel (279
employees). It showed that the employees were
mostly happy with the company and its activities.
They were given the average grade of 3.8 (the
respective figure was 3.9 in 2006) on a scale of
1 to 5. Veikkaus’ employees are committed to the
company and their own work. They feel that they
know the company’s objectives and their own, as
well as the company’s strategies and values. From
2007 to 2008, the development programme invests
especially in the following areas of development:
openness and equal opportunities, work stress and
division of labour, and internal mobility.
CONTROL AND RISK MANAGEMENT
In accordance with the Finnish Lotteries Act
(1047/2001), Veikkaus’ lottery, pools, and betting
activities are supervised by the Ministry of the Interior. The Ministry approves the rules of the games.
Player complaints concerning prize payout are
processed in the Ministry as recommended decision
processes. The gaming activities are supervised by
official supervisors appointed by the Ministry, who
also confirm the game results and number of prizes
on each round.
Veikkaus complies with a comprehensive risk
management system (ERM). The ERM framework
describes the risk management process in the company, together with the related responsibilities and
procedures. The ERM is integrated in the planning
processes of Veikkaus’ activities in a way which
ensures the regular and many-sided evaluation of
the risks inherent in the business objectives and the
company’s preparedness for tackling them. Within
the company, the Executive Team and the different
operations are supported by a Risk Management
Team, which works to ensure the functioning of
the risk management system and its continuous
development.
The external auditors of the standards are Det
Norske Veritas (DNV), which audits Veikkaus’
compliance with the World Lottery Association
At the beginning of March 2007, Finland, together
with Denmark and Hungary, was sent a Reasoned
Opinion by the European Commission. The Reasoned Opinion concerns Football Pools and sports
betting games, provided by Veikkaus on the basis
of its exclusive right to run games in Finland. This
was a follow-up of the letter of formal notice sent
to nine EU member countries by the Commission in
2006. The procedure, which belongs to EU practice,
is based on complaints concerning the national
exclusive right applied to betting, filed with the
Commission by private bookmakers.
Finland responded to the European Commission’s
Reasoned Opinion in May 2007. In its response,
the Finnish Government repeated its view which
it had already given in its previous response a year
before that Finland does not neglect to comply
with the obligations pursuant to the EC Treaty by
restricting the provision and marketing of games
by foreign gaming companies in Finland. In its
response, Finland appealed to the ruling of 8 May
2007 by the Supreme Administrative Court of
Finland and a judgement by the Supreme Court
from 2005. According to them, the exclusive right
system laid down in the Finnish Lotteries Act could
be considered to comply with the EC legislation as
a whole. It was also announced in the response
that parts of the Finnish lottery legislation will be
reconsidered in accordance with the Government
Policy Programme.
Finland’s new government, which was formed in
April 2007, aims to take action to preserve the
exclusive right system of gaming in the midst of the
changing international operating environment. It is
stated in the Government Policy Programme that
the government will take steps to restrict the social
detriments involved in gaming, to prevent crime, and
to preserve the exclusive right system.
Finns are in favour of the present system. According
to a social responsibility survey commissioned by
Veikkaus in June 2007, the majority of the respondents (82%) think that Veikkaus’ exclusive right to
operate lottery, betting and pools games in Finland
is a good thing.
FUTURE PROSPECTS
Veikkaus offers Finns experiences having to do with
dreaming, sports, and entertainment. It generates
unique societal value and offers its customers a
chance to win monetary prizes as a significant
additional value.
Veikkaus’ activities will be guided by a customeroriented and responsible model of operations even
in the future. The objective is that all adult Finns
who are interested in Veikkaus games can play, but
in a controlled manner. In the future, players should
be identified during all gaming transactions. Identified gaming will give Veikkaus a chance to meet the
customers’ needs even better.
The reform of the Lotteries Act was started in
November 2007 and it is scheduled to be complete
in December 2008. Veikkaus is following closely the
preparing of the new legislation, considering its influence on the company’s activities. The preparation
work also inspires public debate over gaming, which
may affect consumer attitudes.
Further, Veikkaus’ activities are affected by changes
in the economic environment, which may show in
consumer behaviour even as regards gaming.
The profit expectation for Veikkaus funds recorded
in the State Budget for the year 2008 is EUR 407.9
million.
BOARD OF DIRECTORS’ PROPOSAL
FOR THE DISTRIBUTION OF PROFITS
In the extraordinary General Meeting held in April it
was decided that the funds of the operating fund,
EUR 65.2 million, be transferred to the company’s
other equity to be distributed further in the years
to come. The undistributed prize funds can amount
to a maximum of EUR 100 million at the most in
accordance with the decision issued by the Council
of State in April 2007.
The Board of Directors proposes that EUR 397 735
456.16 of the total profit of EUR 427 385 456.16
for the financial year of 2007 be returned to the
Ministry of Education, while EUR 29 650 000.00
shall be transferred to the fund of undistributed
prizes.
Financial report 2007
61
INCOME STATEMENT
NOTES
Euro
1 Jan 2007– 31 Dec 2007 and 1 Jan 2006– 31 Dec 2006
2007
2006
1,361,209,561.82
TURNOVER
1
1,391,360,095.29
Other operating income
3
937,570.85
1,895,182.95
712,988,164.97
701,784,280.31
64,751,830.03
62,886,990.01
78,432,607.13
80,336,803.68
6,995,546.98
7,298,491.49
Prizes
Lottery Tax
Raw materials and services
Retail commissions
Playslips and lottery tickets
Drawing expenses and result service
10,099,204.89
9,669,372.97
Game event cooperation
10,014,024.41
9,651,491.11
9,882,519.89
10,260,790.98
Product advertising
Data Communications
-47,182.30
607,813.80
115,376,721.00
117,824,764.03
Expenses from employee benefits
Salaries and compensations
17,809,119.30
17,036,786.31
Pensions
3,406,389.80
3,441,045.27
Other indirect personnel expenses
1,139,086.78
1,130,235.91
22,354,595.88
21,608,067.49
14,721,375.86
15,565,495.15
Purchased services
Depreciations and write-downs
Other operating expenses
4,7,8
17,324,124.30
16,024,576.94
5
23,662,186.77
24,122,505.98
421,118,667.33
403,288,064.86
4,385,500.12
OPERATING PROFIT
Financial income and expenses
Financial income
6
6,267,546.68
Financial expenses
6
757.85
1,086.61
6,266,788.83
4,384,413.51
427,385,456.16
407,672,478.37
Taxes on profit from stock sales
NET PROFIT FOR THE FINANCIAL YEAR
0.00
-16,973.68
427,385,456.16
407,689,452.05
Income/share (Income per share has been calculated by dividing the profit for the financial year by the number of shares)
62
Number of shares
498
498
Income per share (EUR thousand)
858
819
Financial report 2007
BALANCE SHEETS
31 Dec 2007 and 31 Dec 2006
NOTES
Euro
ASSETS
2007
2006
NON-CURRENT ASSETS
Tangible assets
7
38,619,049.26
29,728,574.50
Intangible assets
8
37,414,590.53
31,766,138.73
10
13,514,100.42
10,567,700.42
314,222,773.60
297,743,895.30
Investments available for sale
OTHER RECEIVABLES
Advance payments
Receivables
11
28,066,633.56
24,632,458.22
Liquid funds
12
162,278,626.33
161,822,036.79
594,115,773.70
556,260,803.96
169,320.00
TOTAL ASSETS
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Subscribed capital
13
169,320.00
Reserve funds
13
276,378.01
276,378.01
0.00
34,132,653.01
0.00
10,634,796.44
Operating fund
Other shareholders’ equity
Undistributed prizes’ fund
13
65,217,449.45
0.00
Profit for the financial year
427,385,456.16
407,689,452.05
Total shareholders’ equity
493,048,603.62
452,902,599.51
LIABILITIES
LONG-TERM LIABILITIES
Liabilities arising from employee benefits
15
2,827,000.00
2,722,000.00
Other long-term liabilities
15
290,275.00
219,480.00
Advances for multi-week subscriptions
14
11,456,375.08
10,059,773.10
Trade payable
14
4,179,906.97
12,173,986.16
Winnings payable
14
23,481,693.89
25,208,782.98
Settlement debts to the State
14
12,417,170.68
14,742,908.42
Accruals and deferred income
14
28,526,517.69
23,247,599.80
Other short-term liabilities
14
SHORT-TERM LIABILITIES
TOTAL SHAREHOLDERS’ EQUITY
AND LIABILITIES
17,888,230.77
14,983,673.99
594,115,773.70
556,260,803.96
Financial report 2007
63
CASH-FLOW STATEMENT
EUR thousand
2007
2006
Cash-flow from business operations
Operating profit
421,119
403,288
17,199
15,948
Change in non-interest bearing receivables
-3,456
-5,930
Change in trade and other payables
-2,291
3,152
Adjustments
Operations with no related payment transaction
Change in working capital
Dividends received
Interest received
Interests paid
Tax paid
Net cash-flow from business operations
3
2
6,264
4,384
-1
-1
0
17
438,838
420,858
-34,841
-38,574
156
320
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
22
36
-34,663
-38,218
Cash-flow from financing
Returned to the Ministry of Education
-403,718
-387,476
Net cash-flow from financing
-403,718
-387,476
Change in liquid funds
Liquid funds at the beginning of the financial year
Liquid funds at the end of the financial year
64
Financial report 2007
457
-4,836
161,822
166,658
162,279
161,822
CHANGES IN SHAREHOLDERS’ EQUITY
EUR thousand
Shareholders’ equity 31 Dec 2005
Share
capital
Reserve
fund
169
276
Undistributed
prizes’ fund
Operating
fund
Other
shareholders’
equity
Retained
earnings
Total
shareholders’
equity
24,733
11,118
400,397
436,693
Net profit for the financial year
407,689
Adjustments
- 483
Return to the Ministry of Education
Transfer to/from the operating fund
Shareholders’ equity 31 Dec 2006
9,400
169
276
34,133
- 19,400
10,635
Net profit for the financial year
407,689
452,903
427,385
Return to the Ministry of Education
- 387,239
Transfer to the operating fund
31,085
Transfer to the undistributed prizes’ fund
Shareholders’ equity 31 Dec 2007
483
- 381,480
65,217
169
276
65,217
- 10,635
- 20,450
- 65,217
427,385
493,049
Financial report 2007
65
ACCOUNTING PRINCIPLES 2007
CORPORATE INFORMATION
GENERAL REMARKS
FIXED ASSETS
Veikkaus Oy is a Finnish lottery domiciled in the
The accounting data are shown in thousand euros,
Fixed assets have been measured at their original
City of Vantaa. Its operations are regulated in
except for the income statement and the balance
acquisition cost, less the accumulated depreciations
accordance with the Lotteries Act and the gaming
sheet, and they are based on the initial acquisition
in the balance sheet. The share of the company’s
licence, effective until 31 December 2011. Veikkaus
costs, unless otherwise indicated in the accounting
own work, entered into the intangible assets is acti-
is owned by the Finnish Ministry of Education and
principles below.
vated as part of the acquisition cost. The expenses
supervised by the Ministry of the Interior.
concerning an asset at a later date are activated
Whilst preparing a financial statement in accordance
when they correspond to the economic profit.
BASIS OF PRESENTATION
with international accounting standards, it is neces-
Other expenses, such as the normal measures of
This financial statement was drafted in accord-
sary to make estimates for the future. The estimates
maintenance and repair, are recorded as costs in the
ance with the IFRS standards effective on the 31
have an effect on the asset and liability figures in
income statement at their date of occurrence.
December 2007. The term ‘IFRS standards’ refers to
the balance sheet, as well as on the net profits and
the international accounting standards accepted for
losses for the financial year. The most important
Write-down periods of fixed assets
use within the EU.
estimates in Veikkaus’ financial statement have to
(years):
do with the write-down periods of fixed assets and
Buildings and constructions....................................................25
Since 1 January 2007, Veikkaus has applied the fol-
the assumptions used as a basis for counting the
Renovations of apartments ....................................................... 5
lowing new and reformed standards and interpreta-
pension-based liabilities. The realized values may
Machinery, equipment, and instalments
tions:
deviate from the estimates. Further, applying the
in real estates ....................................................................................... 5
accounting principles always requires discretion.
Other machinery and equipment............................................ 4
– IFRS 7 Financial instruments: disclosures. IFRS
IT software and appliances ...................................................1-6
7 requires disclosures about the significance of
ITEMS IN FOREIGN CURRENCY
financial instruments for the company’s financial
Veikkaus’ operating currency is euro. Business
The profits and losses resulting from the sales or
performance and balance sheet, as well as about
transactions in foreign currency have been recorded
assignment of fixed assets are recorded as other
the risks arising from financial instruments to
as euros using the prevailing exchange rate. Re-
operating income and expenses in the income
the company. Following the introduction of the
ceivables and liabilities have been translated into
statement.
standards, Veikkaus has made some of the notes
the operating currency using the prevailing rate
to the financial statement more specific.
at the date of the financial statement. Profits and
RESEARCH AND DEVELOPMENT
losses arising from business transactions in foreign
Research costs are recorded as expenses in the
financial statements – capital disclosures. The
currency and the translation of the receivables
income statement for the financial year during
management of Veikkaus’ capital is different
and liabilities have been recorded in the income
which they have occurred. Expenses related to the
from that of other companies and the application
statement. The translation profits and losses of the
development of new products, offerings, and
of the standard thus has a minimal effect on the
business operations are included in the respective
processes are activated if the intangible asset
notes to the financial statement.
items above the net profit.
resulting from the development work generates
– Change in the IAS 1 standard Presentation of
economic profit in the future. Further, the costs
– Other possible changes in the standards or the
Prevailing rate at
interpretation do not affect Veikkaus’ financial
the date of the
statement.
Currency
financial statement
USD ...........................................................................................1.47210
GBP ...........................................................................................0.73335
66
Financial report 2007
incurred by the development shall be such that they
can be determined reliably.
LEASES
financial assets in the cash-flow statement corre-
before the age of retirement; the future level of
In accordance with the rental agreements made
spond to the financial assets in the balance sheet.
salaries and the discount rate used in the calculations. The differences between the assumptions
by Veikkaus, the risks and benefits of ownership
are retained by the lessor, and payments made
ADVANCE PAYMENTS TO
and realizations or the changes in the realizations
under operating leases are charged to the income
THE MINISTRY OF EDUCATION
cause actuarial gains and losses. To record them,
statement on a straight-line basis over the period
Veikkaus makes quarterly advance payments on
Veikkaus uses a corridor method in accordance with
of the lease.
its result for the financial year to its owner. The
the IFRS standard. At the date of transition to the
result for the financial year is charged from the
IFRS standards, all accumulated actuarial gains and
FINANCIAL ASSETS AND
shareholders’ equity following a decision by the
losses are recorded in the shareholders’ equity.
FINANCIAL LIABILITIES
General Meeting.
LONG-TERM EMPLOYEE BENEFITS
Financial assets are divided into different categories
at the time of acquisition. The categorization de-
POST-EMPLOYMENT BENEFITS
A one-time compensation equalling a month’s salary
pends on the purpose the financial asset has been
In accordance with the IFRS, the pension settle-
is paid as a bonus for years of service once the
acquired for. The purchases and sales of financial
ments are classified as either payment-based or
employee has served 30, 35, 40 and 45 years at
assets are recorded at the date of the transaction.
benefit-based. The payment-based settlements
Veikkaus. The compensation liability has been count-
include settlements in which Veikkaus pays fixed
ed on the basis of the personnel’s starting years at
Long-term investments held for sale include stocks,
amounts to a pension corporation without an
Veikkaus, by discounting the compensation liability
shares and marketable interest instruments. They
obligation to make additional payments even if
realized at the end of each year to the present.
are measured at fair value. The untraded stocks
the fund lacked the sufficient assets to pay the
are measured at acquisition cost because their fair
pensions. Payments made to the payment-based
OTHER SHORT-TERM
value cannot be determined reliably.
pension settlements are recorded as pension
LIABILITIES – PRIZE FUND
expenses in the income statement. The payments
The prize fund is not an actual fund, but the
Loans and other receivables include sales and other
to the TEL pension insurance system are regarded
company’s liability to the players. The cents accu-
receivables. The difference between the retailers’
as payment-based.
mulated by the rounding of the prize sums and the
share of prizes undistributed in the prize distribution
sales and retail commissions and the prizes they pay
The rest of the pension settlements are benefit-
of Veikkaus games in accordance with the gaming
based. Concerning them, a liability based on certain
licence, are transferred immediately to the prize
The financial liabilities include the short-term
assumptions is recorded in the balance sheet,
fund in connection with the prize distribution. After
liabilities with no interest.
illustrating the pensions to be paid in the future
a claim period of one year, the unclaimed prizes in
on the basis of the settlement. The pension cost
the prize distribution of the different games are
The maturity periods for the loans and other
recorded in the income statement illustrates, e.g.,
transferred to the prize fund. The assets in the prize
receivables group, the short-term investments held
the increase in liabilities arising from the work
fund are used for additional prize distributions in
for sale and the financial liabilities are short and
performed by the staff during the financial period.
the different games. Thus, the company is liable to
out is recorded in the sales receivables.
distribute the entire prize amounts pursuant to the
their fair values are thus considered to correspond
to the book values.
The items recorded from the benefit-based pension
gaming licence to the players.
settlements are based on actuarial calculations. The
The book value of the investments included in the
calculations are made on the basis of assumptions
financial assets is measured at fair value due to
concerning, e.g., the termination of employment
the short term of maturity of the investments. The
of persons belonging to the pension settlement
Financial report 2007
67
TURNOVER
The drawing and result information expenses
The sales of Veikkaus games are divided into
include costs related to game supervision, TV coop-
turnover according to the draw date. The draws
eration agreements and other expenses connected
take place either weekly or daily. The turnover of
with the publishing of the results.
Live Betting consists of gaming income less prizes
charged to the game in question.
Game event cooperation covers the expenses arising from the usability of the object information of
OTHER OPERATING INCOME
the games. The expenses may be based on agree-
AND EXPENSES
ment, or they can be determined totally according to
The other operating income includes indemnifica-
the round-specific or annual turnover of the games.
tions, profit from sales of assets, and profits from
operations other than those related to the com-
TAXES
pany’s actual business operations, such as income
The lottery tax covers 9.5% of the amount of the
from messaging service and leasing.
income from game and lottery ticket sales allocated
to a calendar month in bookkeeping less the prizes
The other operating expenses include the losses
recorded as expenses on their basis. The amount
from sales of assets and expenses related to the
of funds charged to the prize fund/from the prize
actual business operations.
fund is added to/deduced from the difference thus
received.
PRIZES
The income statement includes the prizes in accord-
In accordance with section 59 of the Value Added
ance with the game rules charged to the turnover.
Tax Act, Veikkaus is not liable to pay VAT. The
The prizes unclaimed during the previous year and
company’s expenses and investments include the
the assets from the rounding of the prizes shall be
prevailing VAT.
paid out according to the gaming licence on the
later rounds of different games during the following
In accordance with section 21 of the Income Tax
calendar year at the latest.
Act, Veikkaus is only liable to pay income tax on
income other than that determined in the Lottery
RAW MATERIALS AND SERVICES
Tax Act.
The retail commissions consist of compensations
paid to the retailers on the basis of their game
APPLICATION OF NEW
sales. The commission percentages vary according
OR REFORMED IFRS STANDARDS
to the games.
Veikkaus will adopt the reformed IAS 1 Presentation
of financial statements standard in 2009 (not yet
The printing expenses of the lottery tickets, the
accepted in the EU, effective from 1 January 2009).
playslips, the receipt rolls, and the expenses related
The reformed standard will change the presentation
to the Veikkaus Card are recorded as expenses at
of the financial statements. Other new or reformed
the date of acquisition.
standards and interpretations do not affect
Veikkaus’ financial statements.
68
Financial report 2007
NOTES TO THE FINANCIAL STATEMENTS
1. TURNOVER BY GAMES AND GAME GROUPS
EUR thousand
2007
2006
% share of
turnover
Lotto
% share of
turnover
419,823
30.2
429,719
85,084
6.1
77,996
5.7
504,907
36.3
507,715
37.3
Keno
294,457
21.2
268,818
19.7
Joker
75,413
5.4
72,171
5.3
1,357
0.1
1,514
0.1
371,228
26.7
342,503
25.2
Football Pools
58,262
4.2
50,017
3.7
V75 Off-track Horse Betting
27,760
2.0
27,299
2.0
V5 Off-track Horse Betting
24,318
1.7
24,381
1.8
10
0.0
67
0.0
10.2
Viking Lotto
Lotto games
Other online games
Other online draw games
Other V-games
31.6
Fixed Odds Betting
136,618
9.8
139,435
Result Odds Betting
27,243
2.0
30,645
2.3
Multibet
82,577
5.9
87,674
6.4
8,196
0.6
9,418
0.7
201
0.0
166
0.0
365,185
26.2
369,102
27.1
42,169
3.0
46,754
3.4
8,858
0.6
3,630
0.3
Casino Instant
46,938
3.4
47,532
3.5
Nature Instant
4,300
0.3
6,126
0.5
22,144
1.6
22,362
1.6
3,462
0.2
3,152
0.2
Winner Odds Betting
Live Betting
Sports games
Ässä Instant
Mini-Ässä Instant
Lucky Words Instant
Theme Instants
Christmas Instants
4,718
0.3
3,966
0.3
Nature eInstant
1,211
0.1
1,455
0.1
Horoscope eInstant
2,073
0.1
3,134
0.2
Ässä eInstant
5,925
0.4
3,325
0.2
Football eInstant
293
0.0
516
0.0
Lucky Words eInstant
5,972
0.4
0
-
Deal Or No Deal eInstant
1,120
0.1
0
-
314
0.0
0
-
Christmas eInstant
Hobby eInstant
Instant games
Total
543
0.0
0
-
150,041
10.8
141,890
10.4
1,391,360
100.0
1,361,210
100.0
The turnover of daily drawn games and Keno, Medals Game, and Veikkaus Bingo, round 1/08, and betting games round 52/07, from 28 to 31 Dec 2007
are included in the 2007 turnover judging by their game dates.
Financial report 2007
69
2. FINANCIAL RESULT 2003–2007
EUR thousand
IFRS
2007
IFRS
2006
IFRS
2005
FAS
2004
FAS
2003
Turnover
1,391,360
1,361,210
1,315,827
1,260,829
1,159,290
Net profit
421,119
403,288
397,229
394,517
371,034
30.3%
29.6%
30.2%
31.3%
32.0%
427,385
407,672
400,672
397,297
374,206
30.7%
29.9%
30.5%
31.5%
32.3%
427,385
407,689
400,397
397,735
375,718
30.7%
30.0%
30.4%
31.5%
32.4%
% of turnover
Result before appropriations
% of turnover
Result for the financial year
% of turnover
3. OTHER OPERATING INCOME
EUR thousand
2007
Rental income
Messaging service income
Indemnifications
2006
8
10
91
105
547
451
Profit from stock sales
0
47
Returned prizes from fixed-match gaming
6
920
Other income
286
361
Total
938
1,895
2007
2006
4. DEPRECIATIONS
EUR thousand
Intangible assets
11,111
11,638
Buildings and constructions
3,623
1,158
Machinery and equipment
2,590
3,229
17,324
16,025
Total
Fixed assets are subject to straightline depreciations according to their economic lifespan. Due to the transition into the new game system, depreciations for the worth of EUR 9.7 million were recorded in 2005-2006
in an accelerated schedule. In 2007 EUR 1.7 million of depreciations following the transfer to the new game
system and EUR 2.5 million of depreciations resulting from the renovation work carried out at the facilities in
Vantaa were recorded in an accelerated schedule. In 2008, an estimated EUR 0.9 million of depreciations will
be recorded in an accelerated schedule. Lands, housing stocks and works of art are not subject to depreciations.
70
Financial report 2007
5. OTHER OPERATING EXPENSES
EUR thousand
Other advertising and marketing expenses
2007
2006
5,711
6,600
Other voluntary personnel expenses
1,419
1,157
Travel expenses
1,245
1,448
Representation and negotiation expenses
640
591
Car expenses
643
678
Equipment and freight charges
4,233
3,461
Machinery and equipment
1,878
2,427
Real estate expenses
2,204
2,066
Maintenance and servicing of software
2,533
2,101
Banking expenses
1,207
1,131
Phone expenses
Other office expenses
Total
6. FINANCIAL INCOME AND EXPENSES
783
739
1,167
1,722
23,662
24,123
EUR thousand
2007
2006
Dividend income from investments held for sale
3
2
Interest income from investments held for sale
413
221
5,849
4,138
Interest income from loans and receivables
Other financial income
2
24
Total financial income
6,268
4,386
Interest expenses
1
1
Financial expenses total
1
1
6,267
4,384
Total
Financial report 2007
71
7. TANGIBLE ASSETS AND DEPRECIATIONS
EUR thousand
Tangible assets
Land and
waters
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
Accumulated depreciations 1 Jan 2007
-
10,225
50,035
-
60,261
Depreciations for the financial year
-
3,623
2,517
-
6,140
Accumulated depreciations 31 Dec 2007
-
13,848
52,552
-
66,400
Book value 31 Dec 2007
1,906
18,103
17,994
617
38,619
Book value 1 Jan 2007
1,906
18,857
8,375
592
29,729
Buildings and
constructions
Machinery and
equipment
Other
1,899
26,351
50,944
579
79,774
Increase
6
2,974
7,502
13
10,495
Decrease
0
243
36
0
279
1,906
29,082
58,410
592
89,989
55,910
Acquisition cost 1 Jan 2007
Acquisition cost 31 Dec 2007
Total
Tangible assets
Land and
waters
Acquisition cost 1 Jan 2006
Acquisition cost 31 Dec 2006
72
Total
Accumulated depreciations 1 Jan 2006
-
9,068
46,842
-
Depreciations for the financial year
-
1,158
3,193
-
4,350
Accumulated depreciations 31 Dec 2006
-
10,225
50,035
-
60,261
Book value 31 Dec 2006
1,906
18,857
8,375
592
29,729
Book value 1 Jan 2006
1,899
17,283
4,102
579
23,864
Financial report 2007
8. INTANGIBLE ASSETS AND DEPRECIATIONS
Intangible assets
EUR thousand
2007
2006
Computer software and
activated development costs
Computer software and
activated development costs
Acquisition cost 1 Jan 2007
77,988
Acquisition cost 1 Jan 2006
59,909
Increase
16,759
Increase
18,079
Decrease
0
Acquisition cost 31 Dec 2007
Decrease
94,748
0
Acquisition cost 31 Dec 2006
77,988
Accumulated depreciations 1 Jan 2007
46,222
Accumulated depreciations 1 Jan 2006
34,584
Depreciations for the financial year
11,111
Depreciations for the financial year
11,638
Accumulated depreciations 31 Dec 2007
57,333
Accumulated depreciations 31 Dec 2006
46,222
Book value 31 Dec 2007
37,415
Book value 31 Dec 2006
31,766
Book value 1 Jan 2007
31,766
Book value 1 Jan 2006
25,325
The technology of Veikkaus’ game system is currently being reformed thoroughly. The first phase of the reform, Veikkaus’ internet gaming service was introduced in November 2006. It was followed by the replacement of the online terminals during the spring and summer of 2007. In autumn 2008, the transition to
an entirely new game system will be finalized.
9. INVESTMENTS
EUR thousand
2007
2006
Software
18,508
23,541
IT appliances
16,075
958
28
972
122
11
Office equipment
Equipment, other installations
Real estates
Basic improvements
Machinery, equipment, fittings
Company cars
64
320
494
383
180
293
787
339
Works of art
26
13
Investments
2,946
11,685
Investments in progress
-3,428
269
34,841
38,574
Financial report 2007
73
10. INVESTMENTS HELD FOR SALE
Untraded shares
Other investments held for sale
Total
EUR thousand
12. LIQUID ASSETS
EUR thousand
2007
2006
3,514
568
Cash in hand and at bank
10,000
10,000
Investments held for sale
13,514
10,568
Loans and receivables
Total
2007
2006
3,405
2,051
13,824
13,321
145,050
146,450
162,279
161,822
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, a 0.5%-inter-
Interest rate risk
est is paid. The fair value of the loan is not considered to have changed from
Short-term financial investments expose Veikkaus’ cash-flow to an interest
the original acquisition cost when it is compared with the trading of a loan of
rate risk, but their importance is low as a whole. The income and operative cash-
respective term and conditions at the time of the financial statement.
flows are mainly independent of the changes in market interest rates.
11. SHORT-TERM RECEIVABLES
Investments are made in accordance with guidelines approved by the owner
EUR thousand
and the Board of Directors. According to the guidelines, investments are made
2007
2006
Trade receivables
17,489
15,681
Accrued income
10,449
8,806
Other receivables
Total
129
146
28,067
24,632
securing the capital, without currency risks and for five years at the maximum.
Investing in stocks is not allowed.
13. SHARE CAPITAL
The shares are 498 in number and their nominal value is EUR 340 per share.
The trade receivables consist of game fees uncharged from the retailers. The
Reserve fund
charging period is from Monday to Sunday and the amount for the previous
The reserve fund remains unchanged.
week is charged by direct debiting on Tuesdays. There are a total of 3,114
retailers who game fees are charged from every week. Due to the nature of
Undistributed prizes’ fund
the trade receivables, there is no traditional credit risk. The balance values of
The difference between the net profit for the financial year and the return
the trade receivables do not deviate from the fair values at the date of the
to the Ministry of Education is entered into the undistributed prizes’ fund in
financial statement.
accordance with the General meeting’s decision. The General meeting decides
how the undistributed prize funds are used and the Ministry of Education
Essential items of accrued income
distributes them further to the beneficiaries. According to a decision by the
EUR thousand
Council of State, the undistributed prize funds can amount to a maximum of
2007
2006
EUR 100 million. At the date of the financial statement, the undistributed
Periodic interest income
923
1,158
prize funds amounted to EUR 14.7 million of unused funds from the year
Periodic game event cooperation
497
272
8,682
7,189
208
32
GTech receivables
Return from statutory insurances
Other accrued income
Total
74
Financial report 2007
140
155
10,449
8,806
2004, EUR 19.4 million from the year 2005, and EUR 31.1 million from the
year 2006; a total of EUR 65.2 million. (IAS 1 Capital Management).
14. SHORT-TERM LIABILITIES
EUR thousand
15. LIABILITIES FROM EMPLOYEE BENEFITS
Benefit-based pension schemes
Advance payments for multi-week subscriptions
2007
2006
11,456
10,060
4,180
12,174
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
Accruals and deferred income
Allocated personnel expenses
Accrued winnings payable
New game system, uninvoiced share
Other accruals
pension settlements have been awarded to persons having started before
5,397
5,045
13,610
16,013
7,173
0
2,346
2,190
Total
28,527
23,248
Winnings payable
23,482
25,209
1994. The comparative data have been adjusted by presenting the funds
previously offset in the pension liability as separate items.
The benefit-based pension liabilities are determined
in the balance sheet as follows:
EUR thousand
2007
2006
3,853
4,471
Fair value of funds
-1,525
-1,880
Balance underfund
2,328
2,591
499
131
2,827
2,722
Present value of liabilities
Settlement debt to the State
Lottery tax
Withholding tax liability
Social security liability
Value-added tax
11,586
11,669
420
430
39
40
372
2 604
12,417
14,743
17,888
14,984
97,950
100,417
Actuarial gains (+) and
losses (-) not yet recognized
Net post-employment scheme liabilities
in the balance sheet
Other short-term liabilities
Total
Benefit-based pension costs have been determined
in the income statement as follows:
Winnings payable include uncashed prizes and return payments on bet-
EUR thousand
ting games, as well as the funds deposited on the internet players’ game
2007
2006
Costs based on service during the financial period
109
104
Interest costs
188
219
Other short-term liabilities include, e.g., the prize funds. In the balance sheet
Expected gain from the funds in the settlement
-77
-85
of 31 Dec 2006, they amounted to a total of EUR 14.6 million. In 2007, a total
Total
220
238
accounts.
of EUR 17.8 million were accumulated in these funds and EUR 14.6 million of
them were used for prize payout. The funds totalled EUR 17.8 million in the
balance sheet of 31 Dec 2007. This balance value includes EUR 3.8 million of
funds that can only be used for prize payout in Lotto according to the rules.
Financial report 2007
75
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
2006
Veikkaus grants its staff a bonus for years of service, classified as a long-
4,754
term employee benefit.
109
104
188
219
-559
-43
-47
3,853
4,471
Payments made to the settlement
At the end of the financial year
2007
4,471
-872
Actuarial gains (+) and losses (-)
Other long-term employee benefits: bonus for years of service
Liability recorded in the balance sheet
EUR thousand
At the beginning of the financial year
Increase
Change in the fair values of the funds in the settlement
At the end of the financial year
2007
2006
1,880
1,886
77
85
Payments made to the settlement
115
487
Benefits paid
-43
-47
-504
-531
1,525
1,880
Fair value of the funds at
the beginning of the financial year
Expected gain from the funds in the settlement
Actuarial gains (+) and losses (-)
At the end of the financial year
2007
2006
219
166
71
53
290
219
16. RELATED PARTY TRANSACTIONS
EUR thousand
Veikkaus’ related parties include the CEO, the rest of the Executive Team,
the Board of Directors, the Supervisory Board, and the other state-owned
companies.
Salaries paid; compensations and
Realized gain from the funds in the settlements was EUR -427,000 in 2007
and EUR -446,000 in 2006. The funds in the settlement consist of the
amount accumulated from the pension premiums, belonging to the responsibility of the insurance company.
Veikkaus expects to pay EUR 600,000 to the settlement in 2008.
employee benefits
CEO
2007
2006
327
304
1,137
1,055
Board of Directors
105
125
Supervisory Board
89
98
1,658
1,583
Other members of the Executive Team
Total
The amounts for the financial year and the previous financial year are as follows:
2007
2006
3,853
4,471 4,754
-1,525
-1,880 -1,886
2,328
2,591 2,868
-504
-531 1,886
-669
-618 1,700
Present value of the liability
Fair value of the funds in the settlement
Balance underfund
2005
Experience-based adjustments to
the funds in the settlements
Experience-based adjustments to
the liabilities involved in the settlements
Most important actuarial assumptions made in the settlement
76
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 employment is terminated by notice.
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
company management is not granted option rights.
2007
2006
Discount rate
4.90%
4.10%
Veikkaus may purchase goods or services from other state-owned companies.
Expected gain from the funds in the settlement
4.30%
4.10%
The purchasing prices and delivery conditions for the goods and services are
Assumed future pay rise
3.00%
3.00%
the same as with any other group of customers and they are small in number.
Assumed inflation
2.00%
2.00%
Financial report 2007
Other related party transactions
17. CONTINGENT LIABILITIES AND
18. SIGNATURES OF THE FINANCIAL STATEMENTS
AMOUNTS PAYABLE ON OTHER LEASING AGREEMENTS
AND THE BOARD OF DIRECTORS’ REPORT
EUR thousand
Lease payments due during the next financial year
2007
2006
304
304
296
384
601
688
Lease payments due at a later date,
in five years at the maximum
Lease liabilities total
Vantaa,14 February 2008
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
L E E N A H ARK IM O
M IK AE L IN GBE RG
RIIT T A K AIVO SO JA
ARI L AH T I
L E E N A P AAN AN E N
Most vehicle lease agreements are made for 3 years.
Veikkaus has committed to purchase 32-50 person years of employment
every year for the purposes of maintenance and development of the gaming
system until the end of 2013.
RIST O N IE M IN E N
Veikkaus has committed to cover annually 60%, yet one million euros at the
CEO
maximum, of the expenses of a corporation in its partial ownership until
30 September 2010. Veikkaus owns 19% of the shares of the corporation.
A report on the audit has been issued today.
The financial statements and the report on operations have been drafted in
accordance with the generally accepted accounting principles.
Vantaa, 15 February 2008
O SM O VAL T O N E N
L ASSE H O L O P AIN EN
Certified Accountant
Authorised Public Accountant
19. LIST OF ACCOUNTING BOOKS AND RECORD FORMATS
General ledger
in electronic format
Journal
in electronic format
Cash accounting and payment transaction redords
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
in electronic format
Financial report 2007
77
AUDITORS’ REPORT
STATEMENT BY THE SUPERVISORY
BOARD
To the shareholders of Veikkaus Oy
The Supervisory Board of Veikkaus Oy examined the financial statements for
We have audited the accounts, the accounting record and the administration of
the financial year between 1 January 2006 and 31 December 2007 and the
Oy Veikkaus Ab for the financial year from 1 January to 31 December 2007. The
Auditors’ report. The Supervisory Board has decided to propose in its statement
Board of Directors and the CEO have prepared the financial statement in accord-
to the regular General Meeting that the income statement and balance sheets
ance with the international auditing standards (IFRS) approved for use in the EU,
be approved and the profit in the financial statement be used in accordance
including a balance sheet, income statement, cash-flow statement, statement on
with the Board of Directors’ proposal.
the changes in shareholders’ equity, and notes to the financial statements, as well
as a report on operations pursuant to the regulations effective in Finland. Based
The Supervisory Board finds that its decisions and guidelines have been
on our audit, we give our opinion on the financial statements and administration.
complied with and that it has received the information it has deemed necessary
from the company’s Board of Directors and CEO.
The financial statements have been prepared in accordance with the approved
standards of accounting. The accounts, the accounting principles, the contents
Helsinki, 13 February 2008
and the presentation have been examined to a sufficient degree to conclude
that the report on operations and financial statement do not include crucial mistakes or deficiencies. Whilst auditing the administration, we have examined the
JARI KOSKINEN
legality of the operations by the CEO and the Members of the Board of Directors
Chairman
in compliance with the provisions in the Finnish Companies Act.
MERIKUKKA FORSIUS
JUKKA GUSTAFSSON
TUOMO HÄNNINEN
ULLA KARVO
determined in these standards and the Accounting Act.
JARI LEPPÄ
HEIKKI A. OLLILA
The report on operations has been prepared in accordance with the provisions
SIRPA PAATERO
AILA PALONIEMI
JUHA REHULA
MATTI SAARINEN
operations and financial status as defined in the Accounting Act.
KARI UOTILA
ULLA-MAJ WIDEROOS
The financial statements can be approved, and the members of the Board of
TEIJO LOIKKANEN
In accordance with the international accounting standards (IFRS) approved for
use in the EU, the prepared financial statements give correct and sufficient
information on the result of the company’s operations and financial status as
of the Accounting Act and other regulations concerning the preparation of the
report on operations. The report on operations is in harmony with the financial
statements and provides sufficient information on the result of the company’s
Directors and Supervisory Board, and the CEO can be discharged from liability for
the period audited by us. The proposal of the Board of Directors on the distribution of profit for the year complies with the Companies Act.
Vantaa, 15 February 2008
78
OSMO VALTONEN
LASSE HOLOPAINEN
Certified Accountant
Authorised Public Accountant
Financial report 2007
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.
Strategy and analysis
INCLUDED
PAGE
1.1
Statement from the CEO
Yes
6-7
1.2
Description of key impacts, risks, and opportunities
In part
5, 15-17
2.
Organizational profile
2.1–2.9
Basic information about Veikkaus
Yes
3, 53
2.10
Awards and recognition received in the reporting period
Yes
20
3.
Reporting principles
3.1–3.4
Report profile
In part
1
3.5–3.11
Report scope and boundaries
In part
1
3.12
GRI content index
Yes
79-81
3.13
External assurance
No
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.
COMMENTS
From the perspective of business operations
The information in the social responsibility report has
not been assured by a third party, except for the audited
financial statements.
4.
Governance, commitment, and engagement
4.1–4.10
Governance
Yes
50-52
4.11–4.13
Commitments to initiatives concerning social responsibility
Yes
46
4.14–4.17
Stakeholder engagement
Yes
18-19
5.
Governance structure and key indicators
Yes
50-52
Governance
Economic value generated and distributed, including revenues, operating costs,
employee compensation, donations and other community investments,
development of internal operations and payments to shareholders and
capital providers, and to the State.
In part
16
Information is included in the report;
not presented in the table format recommended by GRI.
EC2 *
Financial implications and other risks and opportunities
for the organization’s activities due to climate change.
No
EC3 *
Coverage of the organizational pension commitments
Yes
EC4 *
Significant financial assistance received from government.
No
International agreements concerning responsible gaming
activities signed by Veikkaus
ECONOMIC RESPONSIBILIT Y
Governance structure
Governance structure
Indicators
EC1 *
Irrelevant to Veikkaus’ activities.
75
Notes to the financial statement 15.
Liabilities from employee benefits
Irrelevant to Veikkaus’ activities.
Market
EC5
Range of ratios of standard entry level wage compared to
local minimum wage at significant locations of operation.
In part
EC6 *
Policy, practices, and proportion of spending on locally-based suppliers
at significant locations of operation.
No
Irrelevant to Veikkaus’ activities.
EC7 *
Procedures for local hiring and proportion of senior management hired
from the local community at significant locations of operation.
No
Irrelevant to Veikkaus’ activities.
16, 31
Average wage in Finland
Indirect financial impacts
EC8 *
Development and impact of infrastructure investments and services provided
primarily for public benefit (through the organization’s own financial investments,
other donations, and pro bono engagement.)
Yes
3, 28
EC9
Understanding and describing significant indirect economic impacts,
including the extent of impacts.
Yes
42
Distribution of Veikkaus’ funds
Annual report 2007
79
INDICATOR
GRI CONTENTS
INCLUDED
PAGE
COMMENTS
Yes
17, 35, 39
Veikkaus’ social responsibility program,
Environmental responsibility
ENVIRONMENTAL RESPONSIBILIT Y
Governance structure
Indicators
Materials
EN1 *
Materials used (by weight or volume).
Yes
36
EN2 *
Percentage of materials used that are recycled input materials.
In part
36
Described in writing
Energy
EN3 *
Direct energy consumption by primary energy source.
No
EN4 *
Indirect energy consumption by primary source.
In part
38
Irrelevant to Veikkaus’ activities.
Heat and energy consumption at the head office reported.
In part
38
Water consumption at the head office
Water
EN8 *
Total water withdrawal by source.
Biodiversity
EN11–EN12 *
Biodiversity
No
Irrelevant to Veikkaus’ activities.
Not reported
Emissions and waste
EN16 *
Total direct and indirect greenhouse gas emissions by weight.
No
EN17 *
Other relevant indirect greenhouse gas emissions by weight.
No
Irrelevant to Veikkaus’ activities.
EN19 *
Emissions of ozone-depleting substances by weight.
No
Irrelevant to Veikkaus’ activities.
EN20 *
NOx, SOx, and other significant air emissions by type and weight.
No
Irrelevant to Veikkaus’ activities.
EN21 *
Total water discharge by quality and destination.
No
EN22 *
Total weight of waste by type and disposal method.
In part
EN23 *
Total number and volume of significant spills.
No
Irrelevant to Veikkaus’ activities.
39
Waste generated at the head office
Irrelevant to Veikkaus’ activities.
Products and services
EN26 *
Initiatives to mitigate environmental impacts of products and services,
and extent of impact mitigation.
Yes
EN27 *
Percentage of products sold and their packaging materials
that are reclaimed by category.
No
Irrelevant to Veikkaus’ activities.
No
Irrelevant to Veikkaus’ activities.
36
Compliance with regulations
EN28 *
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations.
Transportation
EN29
Significant environmental impacts of transporting products and
other goods and materials used for the organization’s operations,
and transporting members of the workforce.
Yes
36, 38
Distribution transports and service calls
Yes
17, 23, 30
Veikkaus’ social responsibility program,
Social responsibility
Workforce by employment type (full-time/part-time),
employment contract (permanent/fixed-term), and region.
Yes
16, 31
Number of personnel
permanent/fixed-term
Total number and rate of employee turnover by age group,
gender, and region.
Yes
16, 31
Changes in personnel
Total turnover
Yes
32
SOCIAL RESPONSIBILIT Y
Governance structure
Indicators
PRACTICES CONCERNING EMPLOYEES AND WORKING CONDITIONS
Workforce
LA1 *
LA2 *
Relationship between employees and employer
LA4 *
Percentage of employees covered by collective bargaining agreements.
LA5 *
Minimum notice period(s) regarding significant operational changes,
including whether it is specified in collective agreements.
No
Occupational health care and workplace safety
80
LA6
Percentage of total workforce represented in formal joint management-worker
health and safety committees (that help monitor and advise on occupational
health and safety programs).
Yes
32
LA7 *
Rates of injury, occupational diseases, lost days, and absenteeism,
and number of work-related fatalities by region.
Yes
31
Annual report 2007
Coverage of collective bargaining agreements
Not reported separately. In compliance with the Finnish
legislation on cooperation within undertakings.
INDICATOR
GRI CONTENTS
INCLUDED
PAGE
COMMENTS
LA8 *
Education, training, counseling, prevention, and risk-control programs in place
to assist workforce members, their families, or community members regarding
serious diseases.
Yes
32
Description of the occupational healthcare services
Training days/entire staff
Education
LA10 *
Average hours of training per year per employee by employee category.
Yes
16, 31
LA11
Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings.
Yes
30
LA12
Percentage of employees receiving regular performance and
career development reviews.
Yes
51, 60
Yes
31
Gender and age distribution, average age
30
Requirement level of the Equal Opportunities Plan;
basic salary ration not reported
Description of the compensation system
Diversity and opportunities
LA13
Composition of governance bodies and breakdown of employee diversity by gender,
age, minority, and other indicators related to diversity.
LA14 *
Ratio of basic salary of men to women
by employee category.
HR1–2, 4–7 *
HUMAN RIGHTS
HR3, 8–9
Human rights
In part
No
Irrelevant to Veikkaus’ activities.
SOCIETY
Local communities
SO1 *
Nature, scope, and effectiveness of any programs and practices
that assess and manage the impacts of operations on communities,
including entering, operating, and exiting.
Yes
18-19
Percentage and total number of business units analyzed.
for risks related to corruption
In part
44, 51-52
SO3 *
Percentage of employees trained in organization’s
anti-corruption policies and procedures.
No
Not reported
SO4 *
Actions taken in response to incidents of corruption.
No
Not reported
Corruption
SO2 *
Veikkaus’ Social responsibility program
Monitoring system described
Political involvement
SO5 *
Public policy positions and participation in public policy development and lobbying.
Yes
18-19, 46
Covered from the point of view of the exclusive right
Compliance with regulations
SO8 *
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws and regulations.
No
Not reported
PRODUCT RESPONSIBILITY
Customers’ health and safety
PR1 *
PR2
Life cycle stages in which health and safety impacts of products and services are
assessed for improvement, and percentage of significant products and services
categories subject to such procedures.
Yes
17, 24-25
Veikkaus’ social responsibility program
Ethical evaluation of game ideas
Total number of incidents of non-compliance with regulations and voluntary codes
concerning health and safety impacts of products and services during their life cycle,
by type of outcomes
Yes
25
Requests for recommended decisions
Product information
PR3 *
Type of product and service information required by procedures, and percentage
of significant products and services subject to such information requirements.
In part
24-25
Monitoring system described
PR5
Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction.
Yes
12, 20
Results of the customer service survey,
results of the retailer satisfaction survey
Yes
29
Veikkaus’ Social responsibility program
Veikkaus’ ethical guidelines for marketing
In part
44
Monitoring system described
Marketing communications
PR6 *
Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising, promotion,
and sponsorship.
Protection of customer privacy
PR8
Total number of substantiated complaints regarding breaches
of customer privacy and losses of customer data.
Compliance with regulations
PR9 *
Monetary value of significant fines for non-compliance with laws and regulations
concerning the provision and use of products and services.
No
Not reported
* Core indicator recommended in the GRI standards
Annual report 2007
81
VEIKKAUS YEAR 2007
JANUARY
The Ministry of Social Affairs and Health published a research on young people’s gaming.
The new Joker draw machine was introduced.
FEBRUARY
Football Pools’ game terms were reformed.
MARCH
Eurovision Instant was launched.
More customer benefits to Veikkaus Card holders introduced.
MAY
The Finnish State used Veikkaus funds to support the Eurovision Song Contest organized in Finland.
The Eurovision Song Contest was offered as one of Veikkaus’ betting objects.
JUNE
Lotto draws were postponed from Saturday to Sunday until the end of August.
The new music-related instant games Pop Songs Instant and The Fabulous Land Instant were introduced.
Players on the internet were offered new tools to control their gaming.
Veikkaus ranked as the second most responsible company in the Companies and Social Responsibility survey.
Veikkaus’ team won the Nordic State lotteries’ summer tournament in Denmark.
AUGUST
The Ministry of Social affairs and Health published a research titled “Finnish Gaming in 2007”.
SEPTEMBER
A new studio for Lotto’s TV draws introduced.
Game terms improved in V5 and V75.
Deal or No Deal Instant launched.
Veikkaus sales clerk of the year rewarded.
OCTOBER
During the Energy Saving Week, Veikkaus was awarded WWF’s Green Office Certificate,
and our staff replaced their traditional light bulbs with energy saving light bulbs.
NOVEMBER
Veikkaus was granted the “Recognised for Excellence in Europe” award in the Finnish Excellence Award
competition.
DECEMBER
Veikkaus Card holders totalled nearly 280 000 at the end of the year.
The Lottery Act reform was started in accordance with the policy laid down by the National Gaming Forum.
82
Annual report 2007
GLOSSARY
Beneficiaries receive support for their activities
from Veikkaus funds, distributed by the Ministry
of Education. In practice, all Finns benefit from
Veikkaus funds. All of us win in Veikkaus games
when engaging in the activities of, e.g., recreational
sports facilities, cinemas, theatres, and the Scout
organization.
Gaming restrictions can be imposed to ensure
secure gaming. The age limit for playing Veikkaus
games at the points of sales is 15 and the limit
for playing on the web is 18. Veikkaus games can
neither be played on credit, nor in the night time; the
system is closed at 22:00 hrs. Live Betting and the
eInstants are subject to stake limits.
Ecological Team is a team consisting of staff
representatives and an external consultant. It
is in charge of the practical implementation of
environmental responsibility and the motivation and
encouragement of the staff in environmental issues,
as well as the communication of them to the staff.
Identified gaming is accessible to customers using
Veikkaus Card or playing registered on the internet
at Veikkaus’ website.
Ethical Council is an advisory expert organ with
12 members from outside of the company, set up by
Veikkaus’ Board of Directors.
European Lotteries and Toto Association (EL)
is an organization of the European gaming operators in the gaming sector.
Funds Distribution Act is an act on the
distribution of funds from lotteries, betting, and
pools games. The distribution of the funds, as it is
specified in the Funds Distribution Act, which was
laid down in 2001, will be introduced gradually by
the year 2010. The act determines the distribution
of Veikkaus funds as follows: 38.5% of the funds
shall be allocated to arts, 25.0% to sports, 17.5% to
science, and 9.0% to youth work. Moreover, 10.0%
of the funds shall be distributed between the said
beneficiaries as separately specified.
Game event cooperation promotes the objectives of Veikkaus’ business operations by safeguarding the required conditions for the offerings. It also
makes Veikkaus games part of different sports
events, helps in achieving rightly-focused product
visibility, and reinforces customer relations.
Gaming licence has been granted to Veikkaus by
the Council of State. As the holder of the gaming
licence, Veikkaus has the exclusive right to operate
lotteries and pools and betting games by virtue of
the Lotteries Act. Veikkaus’ present gaming licence
will be effective until 2011.
Lotteries Act lays down the rules concerning the
operation and supervision of lotteries, the accounting and use of lottery funds, as well as the control
of the allocation of the funds.
National exclusive right is based on the Finnish
lottery legislation, according to which each type of
game shall be provided by just one operator. The
exclusive right provides a means to the authorities
to control gaming and restrict competition that
would lead to aggressive manipulation of players, if
it was left unregulated. Veikkaus has been granted
the exclusive right to provide pools and betting
games, and lotteries.
Offerings include Veikkaus’ products and ways
of offering and distributing them through multiple
channels to the different customer segments in
different situations.
Official supervisors are persons nominated by
the Ministry of the Interior, who supervise gaming
activities and confirm the game results and the
number of prizes on each round.
Online point of sales is a retail outlet selling all
the coupon based games, and instant tickets. With
the help of the online terminal of the outlet, the
gaming transactions are recorded in Veikkaus’ game
system real time.
Peluuri helpline is a toll free helpline for people
worried about or suffering from problem gambling,
as well as for their families and friends. Veikkaus
finances the helpline’s activities jointly with the
other national gaming organizations in Finland.
Request for recommended decision can be
filed by Veikkaus’ players to the Ministry of the Interior in unclear situations concerning prize payout. In
2007 the Ministry of the Interior processed a total
of 35 requests for recommended decision.
Responsibilty valuator is a tool which has been
developed jointly by Veikkaus and the Finnish Slot
Machine Association RAY. It is used to spot and
prevent the possible addiction-provoking features
of the games that might lead to problem gambling.
Retailers manage Veikkaus’ points of sales that
constitute a nation-wide network of retail outlets
selling Veikkaus games. One retailer may have several points of sales. The largest individual Veikkaus’
retailer is Rautakirja Oyj.
Veikkaus Card is Veikkaus’ customer card. It is free
of charge and personal, and is granted to customers
over 18 living permanently in Finland.
Veikkaus funds are funds that Veikkaus returns
to the Ministry of Education, to be distributed
further to the beneficiaries: arts, sports, science,
and youth work. In 2007 the Ministry of Education
distributed EUR 397.7 million of Veikkaus funds.
World Lottery Association (WLA) is a worldwide member organization of the national gaming
organizations with members in over 70 countries.
Its mission is to promote safe and controlled gaming
around the world.
Payout percentage refers to the amount of the
game turnover that is returned to the players as
prizes. The payout percentages vary from one game
to another.
Annual report 2007
83
CONTACTS
Veikkaus’ annual and corporate responsibility report is published
T HE ANN UAL RE PO RT WAS E D I TE D BY :
LAY O U T A ND PI C T U RE D E SI GN :
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 Proventia Solutions Oy.
Up-to-date information is also available in our monthly newslet-
CONTACT I NFO RM AT I O N :
Helsinki-Filmi Oy, p. 33
ter Veikkaus’ eNews. To order the newsletter and the annual
VEIKKAUS OY, THE FINNISH NATIONAL LOTTERY
The City of Hämeenlinna, p. 21
report, please contact Veikkaus’ Communications:
Karhunkierros 4
Miikka Kimari, p. 27
tiedotus@veikkaus.fi, or www.veikkaus.fi /yritys.
FI-01640
Kynämies Oy, p. 21and 37
Vantaa, Finland
Jukka Köresaar/Veikkaus Oy, p. 37
Tel. +358 20 750 750
Kimmo Lehtonen/Kuvasatama Oy, p. 54 and 56
PH OTO S:
Janne Mikkilä/Studio Blick, p. 8, 14, 22, 34 and 40
www.veikkaus.fi
Sakari Viika/The Finnish National Opera, p. 45
Satu Vuori/Kuvasatama Oy, p. 6
I LLU ST RAT I O NS:
Sakari Tiikkaja/Radiant Graphics Oy
PRI NTE D AT :
Libris Oy, 2008
PA PE R:
Cover: Galerie Art Matt 300 g
Inside pages: Galerie Art Silk 130 g
Pages of the Financial statements: Dito 120 g
T RA NSLAT I O N I NTO E N GLI SH :
Marja Heikkinen, TransEarly
84
Annual report 2007
VEIKKAUS’ YEAR 2007
A FINN TO WIN.
VEIKKAUS’ YEAR 2007
ANNUAL REPORT
CORPORATE RESPONSIBILITY REPORT