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Company Presentation
June 2019
Agenda
History – Company Overview
Financial Overview
Strategy
Social Responsibility
Summary
© OPAP
3
The Story so far…
Establishment of
the Greek
Organization of
Football
Prognostics
20 years exclusive-license
contract with the Hellenic
State
Launch of PAME STIHIMA
(sports-betting)
2000
2001
Listed in the
Athens Stock
Exchange
Acquisition of
Hellenic lotteries
12-year
concession
© OPAP
Launch of
KINO
2003
1958
Launch of PROPO
(The Greek Football
Pools Game)
1959
1999
OPAP
incorporated as
a Societe
Anonyme
Extension of exclusive
license until 2030
Award of Video
Lottery Terminals (VLT)
license
2013
2011
Transfer of 33% stake
to Emma Delta
Hellenic Holding for
€652m.
Q4 2013 Launch of
Hellenic
Lotteries &
Online
Q2 2014
Horse Races operations
commencement & launch
of horse races mutual
betting
Q1 2016Operations
commencement of VLTs
Launch of Virtual Games &
SSBTs
2017
New online sports-betting
platform
Acquisition of 36.75% of
Stoiximan Group
2018Launch of
Tzoker
online
2019
Company Overview
4
The
leading
Greek
gaming company
100% privateunder new management
As of 11 October 2013,
OPAP is
Presence in
Cyprus
Market cap on Athens Exchange
c. €3.0 bn(June 2019)
Exclusive concessionextended up until 2030
c. 70%of the total Greek gaming
market of 2018 Gross Gaming
Revenue (GGR)
2018
Revenues (GGR) of
€1,547.0mand EBITDA of
€353.6m
Historic
high dividend
pay-out policy
As of 01.01.16 subject to
35% GGR contribution
Largest retail network in Greece
© OPAP
Date (%) Offering price (€)
25 April 2001 5,36% Initial Public Offering (IPO) 5,5
18 July 2002 18,90% Secondary offering 8,44
14 July 2003 24,45% Secondary offering 9,44
21 July 2005 16,44% Secondary offering 24,14
11 October 2013 33,00% Public tender 6,2
Public offerings -Shareholder Structure
5 © OPAP
Emma Delta Hellenic
Holdings Ltd33,00%
Free Float67,00%
Out of which 23,7% owned by Sazka Group
• Largest Pan-European lottery operator
• Presence in Czech Republic, Greece & Cyprus, Austria, Italy
and Croatia
• Active in countries representing more than 24% of EU lottery
GGR
• Entrepreneurial ownership: KKCG (75%) & EMMA Capital
(25%)
• Synergies with OPAP
• Greek Gross Gaming Revenue (GGR) as % of the GDP compares favorably vs. European peers
The Greek gaming market is a fundamentally attractive market :
• 2018 GGR at 1.14% of GDP (highest amongst the graph’s sample)
• 2018 GGR per adult of €219
Source: H2GC, Apr. 2019. Greek data: OPAP’s reported numbers (Greek operations only), H2GC & Hellenic Gaming Commission
Note: Charts include top-15 EU-28 countries for GGR and GGR/per adult respectively. Gross gaming revenue including offline and online (onshore and offshore) gaming.
(1) Current price GDP
(2) Inhabitants over 18 years old
(3) Excluding Malta
The Greek Gaming Market: A Comparative Review
6 © OPAP
2018
GGR (€bn and %
of GDP(1))
2018 GGR per
adult(2)(3)(€)
In €bn
In % of 2017
GDP
446
377 360311 295
272 268 257232 224 219 212 208 201 199 195
Finland Ireland Italy UK Denmark Sweden Cyprus SloveniaLuxembourg Spain Greece Austria Portugal Belgium Latvia France
18,7
17,2
14,2
10,6
8,8
2,7 2,2 2,1 2,1 1,8 1,8 1,7 1,7 1,6 1,40,2
1,06%
0,70%
0,42% 0,45%
0,72%
0,35%
0,49%
1,14%
0,88%
0,41%
0,90%0,84%
0,54%
0,40%0,30%
0,80%
Italy UK Germany France Spain Netherlands Sweden Greece Finland Belg ium Portugal Chech Rep Ireland Austria Ponland Cyprus
Average: 0.65%
Greek Retail & Online Gaming market
7 © OPAP
During the macro turbulence, the market declined by
c. 38% while OPAP gained significant market share
Source: OPAP’s reported numbers (Greek operations only); H2 Gambling Capital for online market, Hellenic Gaming Commission ReportsNote: since 2014 Instant and passive lotteries and since 2016 Horse racing are being operated by OPAP
0,87%0,93%
0,97% 0,94%0,99%
1,10%1,14% 1,12%
1,18%1,12%
1,07%1,00% 0,97% 0,96%
1,05% 1,06%1,10% 1,12% 1,14%
0
500
1.000
1.500
2.000
2.500
3.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
OPAP Instant & Passives Horse Racing Casinos Online GGR/GDP
GGR/GDP is gradually reaching pre crisis levels on the back of new
products’ introduction (Scratch in 2014 & VLTs in 2017) that have
attracted previously illegal spending & new leisure players.
Stihima & KINO introduction lead to growth>GDP Lack of innovation New games
OPAP market share
62,6%
OPAP market share
69,8%
Significant exclusive concessions secured
through heavy investments in the past yearsMore than 50 years of exclusive concessions backlog already paid for
Oct2000
May2014
Jan2016
Jan2017
Oct2020
May2026
Jan2027
Oct2030
Concession Agreement (20 years)
Concession Extension Agreement (10 years)
Right of first refusal for any other game to be licensed by the Hellenic Gaming Commission
2011 VLT License (18 years)
Jan 2036
+ Right to
renew
2013 State Lotteries Concession Agreement (12 years)
Exclusive Right for online offering of OPAP’s exclusive lottery games
Exclusive offering of onshore online sports betting
Jun2014
Total upfront cost of license(100% already paid by
OPAP)
€323mn
€375mn
License fee to be negotiated on a case by case basis
Lott
ery
&
Bet
tin
g
€560mn
VLT
s
€127mn(1)
Inst
ant
&
Pas
sive
s
€40.5mn
Ho
rse
Rac
ing
Included in upfront payments for legacy
licensesOn
line
(1): Total consideration of €190mn paid by consortium including OPAP, Scientific Games and Intralot, of which €127mn was paid by OPAP for its 67% stake © OPAP
Jan2035
2016 Horse Racing Concession Agreement (20 years)
8
The largest commercial network in Greece with its modernization well on track
Network
9
*as of 31.12.2018.
Hellenic Lotteries products are distributedthrough additional 8,503 POS & StreetVendors
© OPAP
New Opap Stores constructed since 2018
652
Average store size increase since 2015
+22%
4,462 POS*
in Greece
& Cyprus
OPAP
Stores
Gaming
Halls
FY’18
figures
Petrol
stations
PostBank
Bank Bank BankGas stations
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
€m
OPAP’s Greek Revenue (GGR) Breakdown
10 © OPAP
Lotteries
Sports betting
Instant & Passives
VLTs
GDP CAGR: -6.3%
OPAP CAGR: -9.2%
GDP CAGR: +0.6%
OPAP CAGR: +4.4%
PrivatizationBefore After
Games Product Matrix
11 © OPAP
Stihima Joker Lotto Propo Proto Super 3 Extra 5Propo-
GoalKino
Virtual
GamesScratch Laiko Ethniko VLTs
Agent
Commission8% 12% 12%
Frequency of
playDaily
Twice
weekly
Twice
weekly
Three
times
weekly
Twice
weekly
Ten
draws
daily
Two
draws
daily
Once a
week
Every 5
minutes
Every 5
minutesOn going
Once a
week
18 draws
annuallyOn going
2017: 39% of NGR*
2018: 37% of NGR*
2019-2021: 35%+1% of NGR* as bonus.
2019 adjustment is conditional upon achieving 6% average NGR* growth vs. 2016
* NGR: GGR - GGR contribution
of wagers
Mutual Fixed Odds
GH: 36% of
NGR
Agencies:
25% of NGR
Instant
& Passives
VLTs
BettingLottery
51%
26%
10%
13%
51%
26%
8%
14%
50%
24%
11%
16%
48%
26%
9%
17%
Q1’19
Q4’18
Q3’18
Q2’18
GGR breakdown
It’s all about numbers
12
Financials
© OPAP
1.2201.378 1.400 1.398 1.456 1.547
1.737
0
500
1.000
1.500
2.000
13 14 15 16 17 18 19consensus
222
347 377308 307
354410
18,2%
25,2%27,0%
22,0% 21,1%
22,9%
23,2%
0
200
400
13 14 15 16 17 18 19consensus
274 258 235 254 274 268
0
100
200
300
400
13 14 15 16 17 18
141
195 211170
126 143
0
100
200
13 14 15 16 17 18
Revenue (GGR) EBITDA & EBITDA margin on GGR
Total Opex (Gaming operations only) Net Profit
Financial Overview
13 © OPAPAmount in €m
Strong top-line performance & incremental growth driven by:
• Introduction of Scratch & passives in 2014
• Introduction of VLTs and Virtuals in 2017
• Revenue increase & cost optimization brought in material l-f-l
EBITDA growth post the privatization.
• GGR contribution increased in 2016 to 35% from 30% previously.
Adjusted 2018 Ebitda would stand at €408m
• Growth is expected to persist in 2019
• Total Opex (gaming operations) reduced despite the
commencement of several material projects (Hellenic Lotteries,
Horse Racing, VLTs & virtual games)
CAGR: +6.1% CAGR: +10.8%
Financial Results Q1 2019 (1/2)
14 © OPAP
Gross Gaming Revenue (€m)+5.0%
EBITDA (€m) Net Profit (€m)
Greek GDP Q1 2019
+0.90%
Retail Sales
(excl. fuels)
Q1 2019
-1,5%
Department Stores
-12,1%
Pharmaceuticals
-5,7%
Furniture & Household Equipment
+2,9%
Supermarkets
-
Positive momentum of 2018 continues in Q1’19
377 396
0
100
200
300
400
500
Q118 Q119
87
112
0
20
40
60
80
100
120
Q118 Q119
40
57
0
10
20
30
40
50
60
70
Q118 Q119
+28.0% +43.5%
Financial Results Q1 2019 (2/2)
15
Net Profit margin on GGR
* Restated figure on retroactive implementation of the new VLTs license amortization method
EBITDA margin on GGR
Q1 EBITDA (€m)
Q1 Net Profit (€m)
© OPAP
*Excl. one-off items of €10.7m
**Excl. one-off items of €7.4m
+15,7%
+28,0%
87112 101
23,1%
28,2%
25,5%
-3,0%
2,0%
7,0%
12,0%
17,0%
22,0%
27,0%
0
20
40
60
80
100
120
Q1 2018 Q1 2019 Q1 2019*
+25,0%
+43,5%
40
5750
10,6%
14,4%
12,6%
Q1 2018 Q1 2019 Q1 2019*
1651 32
119 169115
263
513
650 651
-242 -297 -302 -274 -246 -191 -240
-77-296
-155
108
436 459 410
2013 2014 2015 2016 2017 2018 Q1 2019
Short-term Debt Long-term Debt Cash Net Debt/(Cash)
Balance Sheet
16 © OPAP
Net Debt position (€m)
Prudent leverage & solid balance sheet structure
• Average cost of lending: Fixed 3,3%
• 1,1x Net Debt /LTM EBITDA
• 17,4x Interest Coverage
Dividend Policy
17 © OPAP
Dividend per share (€)
0,20 0,17 0,12 0,10 0,100,25
0,50
0,430,60
0,30
0,60
0,57
0,70
2013 2014 2015 2016 2017 2018
Dividend
per share0.25 0,70 0,40 1.29 1,10 0,70
Dividend
payout (%)59.6 112.4 60,5 241,4 277,0 155,2
Average dividend yield since the
IPO (‘01-’18) 10%
Average dividend payout since
listing 107%
Both longer & short term history demonstrate consistent & rewarding shareholders returns
Interim Dividend Remaining Dividend Special Dividend
Committed to distribute the bulk
of FCF post investments
2
1
3
• Embedding Customer Obsession
• Investing In Our Network
• Developing Our People
• Building a World-class Portfolio of Products & Services
• Leveraging the latest Digital & Technology Capabilities
• Committing to Our Communities
• Expanding the Power of Our Brand
• Rebuilding healthy relationships with the State, Regulator and other bodies
18
Commenting on the Q1 2019 financial
results, OPAP’s CEO, Mr. Damian
Cope, noted that:
After a strong finish to 2018 I am pleased to report a positive start to the new financial year with an encouraging performance driven by the continuing growth of the contribution from VLTs and better performances in both Lottery and sportsbetting. It is clear that the various investments made during the last few years are now delivering solid returns and demonstrating OPAP’s ability to generate profitable growth. We are also maintaining our close focus on operational excellence and continue to realise improvements and efficiencies in how we manage our business. At the end of Q1 we also launched our first lottery product online, Tzoker, the most popular game in our offline product portfolio, and we are pleased with the level of engagement so far.So far Q2 has shown similar trends, with additional progress thanks to several product enhancements, including the launch of the largest pooled VLT jackpot in Europe. We also look forward to the expected completion of our investment in Stoiximan, which is just waiting final regulatory approvals.Overall we remain positive about expectations for 2019 and confident in the ability of the OPAP Team to sustain the current positive momentum for the rest of the year.
“
”
OPAP Strategy
© OPAP
To establish OPAP as a world class gaming entertainment company
19 © OPAP
Video Lottery Terminals (VLTs) License Agreement
• Fully paid 18 years exclusive license of
€560m for the operation of 25,000 VLTs
• VLTs will add a “growth engine” to OPAP’s
performance potential and is expected to be
amongst the most significant contributors to
OPAP’s EBITDA in the long-term
• Max. allowed number of VLTs per venue: 50 in Gaming
Halls and 15 in existing OPAP agencies
• Deployment deadline: December 31, 2019
• HR to receive 30%-35% of GGR in the form of
royalties
20 © OPAP
Video Lottery Terminals (VLTs)
Steady rollout progress coupled with material contribution on the financials
c.20.1k VLTs operational on June 2019
One of the fastest store roll-out in Europe
Performance overview1Roll-out profile
1Takes into account machines fully operational at the first week of each quarter2Machines operated in Q1. Calculation based on weighted avg.
GGR / VLT / DAY (€)
GGR (€m)
2
21 © OPAP
Video Lottery Terminals (VLTs)
...and a growing active customer base
Performance metrics (Q4’18)Customers Overview
7,117,9
32,4
53,967,2 65,2 69,8
96,9107,2
19,4
48,4
88,6
148,5
192,1219,4
247,9
288,3
326,4
Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1'19
Active Players / monthly avg. ('000)
Registered customer base exceeding 300k
>100k monthly actives
Encouraging evidence from CRM actions coupled with high
opt-in levels
100% of customer play is with player card
Max bet per spin of €2.00 (all games)
100% of customers have set their self-imposed
limitations both on time & money
Mandatory cooling-off period for any change in
self-imposed limitations
Strict certification process for both machines
and venues
Minimum distance from schools
Operation under fully responsible manner
Avg. spending per visit
29€Communication
Opt-in rate
69%<15%
Players reaching
their time or spending limits
22 © OPAP
VLTs enhancement
From 39 to… 71
unique Play games
Xmas campaign
Ladies night
Match of the day Pizza
night
Partynight
Luckydraws
Communication tools & CRM initiatives
Low budget
store with up to
25 VLT’s
Standard store
with 30-50 VLT’s
Flagship store
with differentiated
design
Block with OPAP
store and Gaming
Hall
1 2
34
Different stores formats & more typologies
Introduce new play games Engage with promo events
“OPAP S.A. is a member of the World Lotteries Association (WLA) and the European Lotteries (EL) as well as the Global Lottery
Monitoring Systems (GLMS), independent unions composed of state or state-licensed lottery companies.23
Social Responsibility
© OPAP
Promoting trust strategic framework
MARKET
PLACE
Responsible
Gaming
WORK
PLACE
Employee
Engagement
ENVIRON-
MENT
Environmental
Footprint
COMMUNITY
TRUST
Health Sports EmploymentSensitive
Groups
Level 4 (highest) Certificate in Responsible Gaming by the
World Lottery Association
The largest social contributor in Greece measured in overall expenditure and variety of actions
OPAP in Summary
24
Sole Concessions
• A 50+year exclusive
concessions backlog with the
earliest expiration in 2026
Sales Network
• Largest retail network in
Greece
Significant Cash Flows
• Bulk of FCF (excl. any
investment) will continue to be
distributed as dividends
Strong Fundamentals
• Significant growth coming
from the ongoing VLTs roll-
out, online & rejuvenation of
current products
Ongoing cost control
• Ongoing focus on cost
efficiencies demonstrating
tangible results & delivering
additional savings
© OPAP
Solid Management Team
• Possesses significant
expertise, local know-how and
knowledge of the gaming
industry
Contacts
25
Nikos PolymenakosInvestor Relations Director
Tel : +30 210 5798929
George VitorakisBusiness Development &
Strategic Analysis Director
Tel : +30 210 5798976
© OPAP
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26
Notes
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27
Notes
