Investor presentation. February 2017

Transcription

1 Investor presentation February 2017

2 Disclaimer By reading or attending the presentation that follows, you agree to be bound by the following limitations. This presentation has been prepared by INTRALOT S.A. and its subsidiaries (the Company or We ) solely for informational purposes and does not constitute, and should not be construed as, an offer to sell or issue securities or otherwise constitute an invitation or inducement to any person to purchase, underwrite, subscribe to or otherwise acquire securities in the Company. This presentation is intended to provide a general overview of the Company and its business and does not purport to deal with all aspects and details regarding the Company. For the purposes of this disclaimer, the presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on its behalf, any question-and-answer session that follows the oral presentation, hard copies of this document and any materials distributed in connection with the presentation. By attending the meeting at which the presentation is made, dialling into the teleconference during which the presentation is made or reading the presentation, you will be deemed to have agreed to all of the restrictions that apply with regard to the presentation and acknowledged that you understand the legal regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation. The Company has included non-ifrs financial measures in this presentation. These measurements may not be comparable to those of other companies. Reference to these non-ifrs financial measures should be considered in addition to IFRS financial measures, but should not be considered a substitute for results that are presented in accordance with IFRS. The information contained in this presentation has not been subject to any independent audit or review. A significant portion of the information contained in this presentation, including all market data and trend information, is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. Our internal estimates have not been verified by an external expert, and we cannot guarantee that a third party using different methods to assemble, analyse or compute market information and data would obtain or generate the same results. We have not verified the accuracy of such information, data or predictions contained in this presentation that were taken or derived from industry publications, public documents of our competitors or other external sources. Further, our competitors may define our and their markets differently than we do. In addition, past performance of the Company is not indicative of future performance. The future performance of the Company will depend on numerous factors, which are subject to uncertainty, including factors which may be unknown on the date hereof. Each attendee or recipient acknowledges that neither it nor the Company intends that the Company act or be responsible as a fiduciary to such attendee or recipient, its management, stockholders, creditors or any other person. By accepting and providing this document, each attendee or recipient and the Company, respectively, expressly disclaims any fiduciary relationship and agrees that each attendee or recipient is responsible for making its own independent judgment with respect to the Company and any other matters regarding this document. Certain statements contained in this presentation that are not statements of historical fact, including, without limitation, any statements preceded by, followed by or including the words targets, believes, expects, aims, intends, may, anticipates, would, could or similar expressions or the negative thereof, constitute forward-looking statements, notwithstanding that such statements are not specifically identified. Examples of forward-looking statements include, but are not limited to: (i) statements about future financial and operating results; (ii) statements of strategic objectives, business prospects, future financial condition, budgets, projected levels of production, projected costs and projected levels of revenues and profits of the Company or its management or boards of directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and outside of the control of the Company. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. We have based these assumptions on information currently available to us, if any one or more of these assumptions turn out to be incorrect, actual market results may differ from those predicted. While we do not know what impact any such differences may have on our business, if there are such differences, our future results of operations and financial condition, could be materially adversely affected. You should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. February 2017 Page 2

3 Agenda 1. Company overview 2. Recent developments 3. Key credit highlights 4. Financial performance 5. Conclusion 6. Appendix

4 1. Company overview February 2017 Page 4

5 Overview of INTRALOT a global gaming technology and service company Business description Our three pillars INTRALOT is a global leader in the supply of integrated gaming systems and services Designs, develops, operates and supports customized software and hardware for the gaming industry Provides innovative technology and services to state and statelicensed lottery and gaming organizations worldwide Licensed Operations Management Contracts Technology Holds licences for full games operation Founded in 1992 and listed on the Athens Stock Exchange since 1999 Operates a diversified and stable portfolio of 78 contracts and licenses across 55 jurisdictions and 5 continents INTRALOT has renewed 94% of contracts up for renewal / extension since January 2013 (15 out of 16 contracts) Revenues of 1,915mm and EBITDA of 177mm (9.3% margin) in 2015A; 1,298mm and 167mm (12.9% margin) in September-16 LTM, respectively By geography 1 9M16 Revenue breakdown By business activity Operation and control over every aspect of the gaming offering Day to day operations management Includes marketing, POS optimisation, risk management Provision of hardware, software and telecom solutions to state or state-licensed operators Installation, maintenance and support America 40.2% RoW 17.3% Europe 42.4% Technology 16.7% Management contracts 8.6% Licensed operations 74.7% Typical contract structure Open-ended market licence Revenues generated through wagers Typical contract structure Multi-year with renewal options Fixed percentage of wagers Typical contract structure Multi-year with renewal options Fixed percentage of wagers 1 Excluding eliminations February 2017 Page 5

6 Global Presence - INTRALOT at a glance Europe U.S.A. Total of 120 patents Retailer terminals VLT Systems Self-service terminals Horizon Monitors Retailer terminals Horizon Monitors Retailer terminals VLT Systems Horizon Monitors Africa South America Oceania Asia 24.4bn wagers handled >100bn transactions Retailer terminals Horizon Monitors Retailer terminals 160 VLT Systems Horizon Monitors INTRALOT Retail Solutions WORLDWIDE 45 Countries 55 Jurisdictions 78 Contracts 5,225 Employees 1.9 Bn Revenues in 2015 INTRALOT is the leading supplier of integrated gaming and transaction systems, innovative game content, sports betting and interactive gaming services to state Lotteries worldwide February 2017 Page 6

7 Group structure Intralot S.A. Intralot Global Securities B.V. Intralot Capital Luxembourg S.A. 250mm 6.750% 2021 SN 250mm 6.000% 2021 SN Intralot Global Holdings B.V. Syndicated Facilities Guarantor Subsidiaries Non Guarantor Subsidiaries February 2017 Page 7

8 2. Recent developments February 2017 Page 8

9 Jan Mar Apr May Jun Jul Aug Sep Nov Dec Jan Recent company developments Key events over the last twelve months Chile Successful Go Live of the 10 year term contract with the State Lottery organization USA (Idaho) Named apparent successful vendor by the Idaho Lottery for a 10-year term with an option to extend for up to a maximum of two (2) additional 5-year terms Peru Completion of the Intralot de Peru transaction (Nexus Group) Morocco Signed a 1-year extension with both lotteries Successful early Refinancing of a 250m bond with significantly better terms and increased RCF lines by 40m Australia and New Zealand INTRALOT entered into discussions on an exclusive basis with Tatts regarding a potential sale of INTRALOT s Australian and New Zealand businesses Bulgaria Completion of the acquisition of a 49% stake in Eurobet, a numerical and instants tickets operator in Bulgaria Italy Completion of the Gamenet transaction Philippines - Renewal of the contract with Pacific Online Systems Corporation (POSC) for a 3 year term Netherlands - Renewal of the contract with the Nederlandse Staatsloterij/De Lotto for a 3 year term Brazil - Renewal of the contract in with Minas Gerais for a 6 year term Launch of Canvas platform Development of Competence centres in Argentina, Philippines and Greece February 2017 Page 9

10 9M16 performance Margin: Key metrics ( mm) Revenues (Turnover) +7.0% % M15 9M16 3Q15 3Q16 EBITDA 13.5% 12.9% 14.8% 10.9% +2.4% (14.3%) M15 9M16 3Q15 3Q16 Key takeaways Strong increase in revenues both in 3Q16 and 9M16 (+16.2% and +7.0% respectively, compared to the same prior year period Increased sales in Bulgaria, Turkey, North America and West Europe (Malta and Cyprus) more than counterbalanced decreased sales in Azerbaijan and South America (Jamaica, Argentina and Peru) Strong EBITDA growth (+2.4% y-o-y in 9M16) Operating Cash-flow almost doubled in 9M16, mainly due to WC improvements ( +2.9m in 9M16 vs -46.8m in 9M15) 65 9M M15 Net cash from operating activities Net capex M M16 INTRALOT Q3 was marked by aggressive organic revenue growth, as a result of the company strategy for launching new products and services and reaping fruits of new projects. Recent milestone developments of a successful early refinancing of a 250m bond in September with significantly better terms that lead to cumulative savings of up to 65m savings in debt-servicing costs and extension of maturities to 2021 combined with the collection of USD 68.7m in cash from the disposal of 80% of our operation in Peru have drastically improved our financial position and capacity to meet our targets of significantly reduced net debt and improved cash position by the end of Antonios Kerastaris, Group CEO Note: 9M16 & 9M15 results do not include discontinued operations in Italy and Peru 1 EBITDA defined as EBIT before depreciation and amortization, where EBIT is defined as operating profit before tax plus profit/(loss) equity method consolidations, exchange differences, interest and related income and interest and similar charges, write-off and impairment losses of assets and investments, and gain/(loss) from asset disposal 2 Purchases of tangible and intangible assets less proceeds from sales of tangible and intangible assets February 2017 Page 10

11 Regulatory and industry trends overview Regulation Initiatives Global regulation changes, driven by country and state budget deficits and increased demands for social welfare spending fuel: Liberalizations of gaming markets, mainly Internet and mobile markets Privatizations of state owned lotteries Crackdowns on illegal gaming End-to-End player experience New business models focus on growing consumer demand for entertainment Personalized game offering and content Customer analytics Technology convergence An All-in-one gaming platform delivering a unified customer experience Convergence of land based and interactive channels Distribution channels Mobile is now the primary access point to online retail for most consumers Competition Key sector trends Major international competitors shift focus to VLT market and achieving synergies INTRALOT s strengths Leading partner for organizations that want to compete in a regulated interactive competitive environment Offers a personalized player experience Robust, efficient and versatile gaming platform that converges land base and interactive channels Connects innovative gaming verticals Offers extensive business support for optimal customer experience February 2017 Page 11

12 3. Key credit highlights February 2017 Page 12

13 Credit highlights 7 Management experienced at renewing contracts and delivering revenue and EBITDA growth 1 Attractive industry with sustainable future growth prospects 6 Strategy supporting higher margins and lower debt loads 2 Leading position in the sector with technological innovations creating significant barriers to entry 5 Shift to asset-light model and stronger cash flow generation 4 Highly visible recurring revenues secured by longterm contracts 3 Diversification and scale across geographies and business activities February 2017 Page 13

14 1 Attractive industry with sustainable future growth prospects Focus on lottery and betting Global Gaming Market GGY Evolution per product ($bn) CAGR % +2% 0% 0% +6% +4% +3% +4% +6% +5% Others Gaming Machines Casino Betting Lottery 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E Focus on emerging markets / Strengthen INTRALOT s presence in Africa Global Gaming Market GGY Evolution per region ($bn) CAGR % +8% RoW +2% +2% Europe +7% +4% +2% +3% Asia Americas 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E Source: GBGC January 2016 February 2017 Page 14

15 2 Leading position in the sector with technological innovations creating significant barriers to entry Licensed operations Country % of 9M16 EBITDA #1 market position 25.5% 11.4 years avg. contract expiry 1 Leading market position 40.0% Total 12 countries % INTRALOT enjoys leading positions in licensed gaming in many of its countries of operations 1 Weighted average based on 9M16 EBITDA contribution 2 INTRALOT also operates in Russia and Slovakia February 2017 Page 15

16 2 Leading position in the sector with technological innovations creating significant barriers to entry Management contracts and Technology Leading positions across the world Technology contracts won globally (since 2005) Well diversified portfolio with balanced presence in developed (through new sales channels) and developing markets (high GDP growth) Approximately 24% market share in the US (11 states + D.C.) and 50% in Argentina (9 states) in IT to lotteries 1st in wins in international tenders SGI 20% INTRALOT 47% Provider of IT to Lotteries in Taiwan, South Korea, New South Wales (Australia), etc. Recurring revenues contracts duration between 8-10 yrs Tenders : 75 INTRALOT: 35 IGT: 25 SGI: 15 IGT 33% Source: INTRALOT Well established player in the US WA MT ND MN OR CA NV ID UT WY CO SD NE KS IA MO WI IL MI IN KY OH WV NY PA NJ MD VA DE VE NH CT ME RI INTRALOT Inc. (US) Established Dec 2001 AZ NM OK TX AR LA MS TN AL GA NC SC DC INTRALOT 60M population coverage 24% market share (contracts in 11 states + D.C.) FL INTRALOT IGT SGI NO LOTTERY February 2017 Page 16

17 3 Diversification and scale across geographies and business activities EBITDA by business activity Diversified portfolio with 78 contracts and licenses, with presence across 55 jurisdictions in 45 countries Well diversified portfolio with balanced presence in developed (through new sales channels) and developing markets (high GDP growth) Majority of revenues, cash resources and debt obligations outside Greece, thereby mitigating individual sovereign risk 24.4bn wagers handled annually with more than 100bn transactions processed 5,225 people employed worldwide Average sovereign rating of operations in the high BBB/Baa area (based on EBITDA split) Management contracts 30.9% Tech and support services 29.7% Netherlands 3% Malta 6% Morocco 5% Azerbaidjan 7% 9M16 EBITDA: 124m EBITDA by geography 1 Russia 2% Argentina 8% Jamaica 7% Other 8% Bulgaria 13% USA 22% Licensed operations 39.4% Turkey 19% 9M16 EBITDA: 124m 1 Countries with negative EBITDA have been excluded from the chart February 2017 Page 17

18 4 Highly visible recurring revenues secured by long-term contracts 86% of revenues secured through multi-year contracts or renewable licenses until 2020 Average contract term of 8 years Strong track record of contract renewal (94%) 16 operations in 13 countries with leading market position in the majority of them Contracts with long-term duration, providing stability to revenue stream Unique operational model in countries allowing INTRALOT to micro tailor products for distribution Competition (where applicable) is local no global competitor in licensed operations markets Morocco Turkey (Inteltek) Major contract expiry (without renewal options) OPAP New Zealand Malta Argentina - 13 contracts Azerbaijan US - 15 contracts Greece - Hellenic Lotteries Bulgaria Jamaica Open Market Licenses Contract type % of 9M16 EBITDA 1 5% 14% 4% 1% 6% 8% 7% 22% <1% 12% 7% Licensed Operations Management Contracts Technology 1 Excluding countries with negative EBITDA February 2017 Page 18

19 5 Shift to asset-light model and stronger cash flow generation Two pillars to the shift to asset-light business model Syndicate risk and reduce capex by entering into JVs with local partners allowing for minimum equity check while maintaining and selling new contracts Optimize product development by minimizing customization requirements Various criteria to select local partners Local experience in industry and ability to deliver Extensive distribution chain Well capitalized and long-term presence E.g. large utilities or telephonic companies Highly flexible cost base with 85% of costs variable 1 Purchases of tangible and intangible assets Winnings payout 55% Less capex intensive business model Capital expenditure 1 ( m) Capital expenditure 1 / Revenue net of payout % % ,4% 7,3% 40 7,3% 6.2% 8% FY 2015A total cost breakdown Other variable costs 31% Fixed costs 14% HR costs 18% Other fixed 13% Other variable 9% Direct COS 11% 4.9% 2013A 2014A 2015A 9M15 9M16 Game tax 27% Agents commissions 22% 4% 0% February 2017 Page 19

20 6 Strategy supporting higher margins and lower debt loads EBITDA impact Cash Flow impact Products & Services focus New distribution channels (Self Service Terminals, Mobile) Sport betting VLT monitoring Global offering Technology as enabler Operational excellence ( know how ) Core system Content management CRM Referencing in 50+ jurisdictions Fertilization Local partnerships In existing business In new ventures Local relations/ know how Regulatory constraints Capital release (equity/ capex) Topline and cost synergies Examples Intralot Inc. Intralot de Peru Intralot Italia Eurobet Operational Globalization Synergies Operating leverage Efficiencies Asset Non core asset disposal WC optimization Financing De-leverage Debt re-pricing Shift to asset-light business model generating positive EBITDA and Cash Flow impact February 2017 Page 20

21 7 Management experienced at renewing contracts and delivering revenue and EBITDA growth Revenue 1 evolution by region ( m) Management has achieved Revenue (CAGR 12.3%) and EBITDA (CAGR 3.6%) growth despite changes in gaming regulatory landscape 2015A Revenue and EBITDA +3.3% and +13.6% 2 compared to 2014A Experienced team has demonstrated in-depth knowledge of the gaming sector dynamics Keys wins Contract renewal rate of 94% since January 2013 (15 out of 16 contracts) 47% win rate in international tenders since 2005 Successfully entered and gained market share on the US market Successful implementation of internal restructuring measures aimed at improving efficiency Europe Americas RoW 1,915 1,853 1, , , A FY A FY A FY A FY A FY15 EBITDA evolution ( m) Europe Americas RoW A FY A FY A FY A FY A FY15 1 Revenue values include eliminations 2 LFL basis excluding FX impact February 2017 Page 21

22 4. Financial performance February 2017 Page 22

23 Overview of key financial metrics Revenues EBITDA and EBITDA margin m Revenues m EBITDA EBITDA margin ,7% 195 9,5% 9,3% ,5% 12,9% ,0% 10,0% 5,0% A 2014A 2015A 9M15 9M A 2014A 2015A 9M15 9M16 0,0% Net cash from operating activities and capex Net debt 1 and Net debt / EBITDA 2 m Net cash from operating activities Capex m Net debt Net debt / EBITDA A 2014A 2015A 9M15 9M ,2x 2,7x 2,9x 2,1x 2,2x ,3 2013A 2014A 2015A 9M16 9M16 Adj. 3,5x 3,0x 2,5x 2,0x 1,5x 1,0x 0,5x 0,0x Note: 9M15 & 9M16 results do not include discontinued operations in Italy and Peru 1 Net debt calculated as Long-term debt plus Short-term debt and current portion of long-term debt plus Financial Leases less Cash and cash equivalents 2 Calculated as Net debt divided by LTM EBITDA Adjusted for the proceeds of the Peruvian transaction: 62.3m & the redemption premium of the 2018 bond: 10.8m February 2017 Page 23

24 Financial policy Leverage Maintaining a net leverage below 2.0x (post M&As steady state). INTRALOT can tolerate a peak leverage at up to 3.25x Cash, liquidity and debt management Maintain strong liquidity at all times. Most of the cash held in the UK, The Netherlands & Luxembourg whereas our reliance on the Greek banking system is limited to less than 3% of total deposits CAPEX INTRALOT s new strategy is expected to result in a lower level of capex. INTRALOT maintains flexibility in its capex plan to meet its financial policy guidelines. Acquisition strategy Currently, no material acquisitions contemplated in the medium term Dividend policy INTRALOT is currently not paying any dividends to its shareholders and does not intend to pay dividends in the future until target leverage is achieved Working capital Working capital is expected to improve in the next years following the spike in 2015 Currency and risk management Surplus cash is regularly converted from local currencies into EUR or USD (> 50% of deposits) whereas FX risk related to the payment of dividends is mitigated via Forwards. Accounting IFRS standards, matching all international standards for corporate governance, reporting systems aligned to listed companies February 2017 Page 24

25 Pro forma capital structure Pro forma capital structure as of 9M16 ( mm) Amount as of 9M16 Maturity Interest Cash (445) 1,2 Senior Unsecured Notes 2018 (Fully repaid/cancelled as of Oct.14th 2016) /08/ % Senior Unsecured Notes /05/ % Senior Unsecured Notes /09/ % Syndicated Loan Facility E+550bps Maltco Lotteries LTD Term Loan % Intralot INC % Other debt liabilities 8 Gross debt 927 Net debt 482 Net debt / EBITDA 2.9x LTM Q3-16 EBITDA An amount of EUR 234.9m was allocated for the repayment/cancellation of the Senior Unsecured Notes due 2018 (date : Oct. 14th 2016). 2 Adjusted for the proceeds of the Peruvian transaction: 62.3m & the redemption premium of the 2018 bond: 10.8m 3 LTM results do not include discontinued operations in Italy and Peru 25 February 2017 Page 25

26 Joint ventures overview Rationale for entering into JVs Attractive point of entry in a given market, with limited capital expenditure requirements compared to full-scale M&A Opportunity to establish strategic partnerships with local players which offer substantial market knowledge, well-established sales network and recognized brand names Ability to invest in companies in which local partners see upside and are therefore willing to retain a controlling stake in Country Turkey (Inteltek) Turkey (Bilyoner) Bulgaria INTRALOT stake 45.00% 50.10% 49.00% + option for additional 2.00% Azerbaijan 22.95% Jamaica 24.97% Argentina 50.01% List of Joint Ventures Contract type Management contract Manage sports betting on behalf of national sports betting organization Distribution channel for sports betting Licensed operation Sports betting and numerical games Licensed operation Sports betting and horse racing Licensed operation Numerical games and sports betting 9 facilities management (IT) contracts with state lottery operators & 1 licensed operation from state lottery organization 9M16 EBITDA contribution 1 14% 5% 12% Total 53% 7% 7% 8% 1 Excluding countries with negative EBITDA February 2017 Page 26

27 5. Conclusion February 2017 Page 27

28 INTRALOT a global gaming technology and service company Global offering with local partnerships Gaming technology leadership Revenue visibility and improved margins Sustainable capital structure Financial policy Presence in 45 countries on 5 continents balanced between developed markets and developing markets Developed markets offer access via long term contracts to stable recurring revenues while developing markets provide exposure to higher GDP growth No country contributes more than 24% of 9M16 EBITDA 1 Strong contract diversity Portfolio of 78 contracts and licenses across 55 jurisdictions and 5 continents Focus on profitable markets and contracts Global leader with a total of 120 patents in gaming technology and gaming management contracts In IT lotteries, 24% market share in the US (11 states) and 50% market share in Argentina (9 states) Innovative end to end solutions in every business activity Focus on core areas of expertise primarily recurring long-term managed services and technology contracts which do not require significant capital investments Contracts with long-term duration provide stability to revenue streams Until 2020, 86% of revenues are secured through multi-year contracts or renewable licenses Average contract term of 8 years Strong track record of contract renewal (94%) Shift to asset-light business model driving higher margin, lower capex performance and higher cash flow resiliency Highly flexible cost base with 85% of costs variable Cash proceeds from business sales and asset-light shift used to reduce debt Group to benefit from lower interest costs Focus on more conservative financial policy Maintain strong liquidity at all times Most of the cash is held in the UK, The Netherlands & Luxembourg whereas reliance on the Greek banking system is limited to less than 3% of total deposits New asset-light shift is expected to result in lower and more flexible level of capex No material acquisitions contemplated in the medium term INTRALOT is currently not paying any dividends to its shareholders and does not intend to pay dividends in the future until target leverage is achieved 1 Excluding countries with negative EBITDA February 2017 Page 28

29 6. Appendix February 2017 Page 29

30 Financial performance P&L in mm 2013A 2014A 2015A LTM Sep-16A 9M15 9M16 Revenue 1, , , Cost of sales (1,271.5) (1,582.9) (1,653.3) (1064.2) (726.8) (789.2) Gross profit Other operating income Selling expenses (40.2) (60.3) (66.4) (59.2) (37.3) (39.9) Administrative expenses (120.8) (119.9) (125.0) (88.8) (66.6) (64.2) Research and development expenses (7.0) (7.2) (6.1) (4.9) (5.3) (4.1) Other operating expenses (14.0) (13.3) (10.0) (3.1) (3.8) (1.7) EBIT % margin 6.7% 4.8% 4.1% 7.60% 8.1% 7.6% EBITDA % margin 12.7% 9.5% 9.3% 12.90% 13.8% 12.9% Income/(expenses) from participations and investments (0.2) (2.2) (0.1) (2.1) Gain/(loss) from assets disposal, impairment and write-off (3.0) (1.5) (2.0) (2.7) 0.2 (1.8) Interest and similar charges (55.4) (70.8) (68.6) (71.3) (51.3) (54.8) Interest and related income Exchange differences (11.1) (1.6) Profit/(loss) from equity method consolidation (3.0) (2.3) (4.1) (3.9) (2.8) (2.6) Operating profit/loss before tax from continuing operations Taxes (32.2) (44.2) (46.4) (33.1) (33.7) (21.7) Net profit/loss from continuing operations 21.4 (7.6) (20.7) 0.5 (2.9) (3.9) Net profit/loss from discontinued operations (13.7) 36.3 Net profit/loss (continuing & discontinued operations) 21.4 (7.6) (20.7) 28.3 (16.6) 32.4 Total comprehensive income/(expense) after tax (33.9) 5.6 (7.1) (5.6) (12.2) (10.7) Total income after tax (12.6) (2.0) (27.8) 22.9 (28.9) 21.8 February 2017 Page 30

31 Financial performance balance sheet in mm 2013A 2014A 2015A 9M16 Assets Non-current assets Tangible fixed assets Investment property Intangible assets Investment in subsidiaries and associates Other financial assets Deferred tax assets Other long term receivables Current assets Inventories Trade and other short-term receivables Other financial assets Cash and cash equivalents Assets held for sale Total assets 1, , , ,308.7 Equity and liabilities Share capital Treasury shares 0.0 (0.5) (0.5) (1.0) Other reserves Foreign currency translation (61.0) (57.1) (59.4) (63.0) Retained earnings Reserves from profit / (loss) recognized directly in other comprehensive income and are related to assets held for sale (2.6) Minority interest Total equity Non-current liabilities Long-term debt Staff retirement indemnities Other long-term provisions Deferred tax liabilities Other long-term liabilities Finance lease obligation Current liabilities Trade and other short-term liabilities Short-term debt and current portion of long-term debt Current income taxes payable Short-term provision Liabilities directly related to assets held for sale Total liabilities , ,119.5 Total equity and liabilities 1, , , ,308.7 February 2017 Page 31

32 Financial performance cash flow statement in mm 2013A 2014A 2015A 9M15 9M16 EBITDA Interest and similar expenses (55.4) (70.8) (68.6) (51.3) (54.8) Interest and related income Exchange differences (11.1) (1.6) Profit/(loss) equity method consolidation (3.0) (2.3) (4.1) (2.8) (2.6) Gain/(loss) from assets disposal, impairment and write-off (3.0) (1.5) (2.0) 0.2 (1.8) Income/(expenses) from participations and investments (0.2) (0.1) (2.1) Depreciation and amortization (91.5) (87.3) (98.2) (48.9) (51.2) Net profit before taxation from continuing operations Net profit before taxation from discontinued operations (12.8) 37.7 Net profit before taxation from total operations Depreciation and amortization Provisions Results from investing activities (2.6) (10.5) (0.2) 0.6 (37.3) Interest and similar expenses Interest and related income (10.4) (12.5) (18.0) (11.3) (8.1) Decrease/(increase) of Inventories (3.9) (5.2) Decrease/(increase) of Receivable Accounts (67.3) 14.9 (19.2) (23.0) (3.3) (Decrease)/increase of Payable Accounts (except Banks) 43.7 (10.2) (23.9) (24.7) 4.6 Income tax paid (35.5) (29.0) (28.2) (22.8) (19.4) Net Cash from Operating Activities (Purchases)/Sales of subsidiaries, associates, joint ventures and other investments (22.9) 7.5 (5.3) 2.8 (32.7) Purchases of tangible and intangible assets (58.2) (67.3) (70.8) (55.5) (47.2) Proceeds from sales of tangible and intangible assets Interest received Dividends received Net Cash from Investing Activities (69.5) (44.9) (59.8) (38.5) (70.4) Subsidiary's capital return (3.4) Purchase of treasury shares 0.0 (0.4) (0.5) Cash inflows from loans Repayment of loans (472.3) (255.5) (58.8) (38.5) (107.1) Bond buy backs (6.3) (40.9) (41.4) (3.7) Repayment of leasing obligations (6.9) (12.2) (11.5) (8.7) (6.3) Interest and similar expenses paid (1) (37.8) (66.1) (64.8) (53.9) (53.3) Dividends paid (16.6) (23.7) (67.7) (55.9) (37.5) Net Cash from Financing Activities (41.2) (182.3) (152.0) 75.9 Net increase/(decrease) in cash and cash equivalents for the period (128.3) (125.6) February 2017 Page 32

33 . A GLOBAL LEADER. YOUR LOCAL PARTNER February 2017 Page 33