Investor presentation - February 2017 - Intralot
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Investor presentation February 2017
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
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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
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February 2017 | Page 2Agenda 1. Company overview 2. Recent developments 3. Key credit highlights 4. Financial performance 5. Conclusion 6. Appendix
1. Company overview
February 2017 | Page 4Overview 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 state-
licensed 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
Operation and Day to day Provision of
INTRALOT has renewed 94% of contracts up for renewal / extension control over every operations hardware, software
since January 2013 (15 out of 16 contracts) aspect of the gaming management and telecom
Revenues of €1,915mm and EBITDA of €177mm (9.3% margin) in 2015A; offering Includes marketing, solutions to state or
€1,298mm and €167mm (12.9% margin) in September-16 LTM, respectively POS optimisation, state-licensed
risk management operators
9M16 Revenue breakdown Installation,
maintenance and
By geography1 By business activity support
Management Typical contract Typical contract Typical contract
RoW contracts
17.3% 8.6%
structure structure structure
Open-ended Multi-year with Multi-year with
Technology
16.7% Licensed market licence renewal options renewal options
Europe
operations Revenues Fixed percentage Fixed percentage
42.4%
America 74.7%
generated of wagers of wagers
40.2%
through wagers
1 Excluding eliminations
February 2017 | Page 5Global Presence - INTRALOT at a glance
Europe
U.S.A.
€24.4bn wagers
handled
Total of 51.000 Retailer terminals Oceania
>100bn transactions
71.500 Retailer terminals
26.000 VLT Systems 36.000 Horizon Monitors Asia
120 patents 8.200 Self-service terminals
34.000 Horizon Monitors
22.000 Retailer terminals
Africa 30.000 VLT Systems
South 11.500 Horizon Monitors
America
3.400 Retailer terminals
2.300 Horizon Monitors
6.900 Retailer terminals
160 VLT Systems
306.000
3.500 Horizon Monitors
INTRALOT Retail
Solutions WORLDWIDE
45 55 78 5,225 1.9 Bn
Countries Jurisdictions Contracts Employees 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 6Group structure
Intralot S.A.
€250mm 6.750% 2021 SN
Intralot Global Securities Intralot Capital
B.V. Luxembourg S.A.
€250mm 6.000% 2021 SN
Intralot Global Holdings
B.V.
Syndicated Guarantor Non Guarantor
Facilities Subsidiaries Subsidiaries
February 2017 | Page 72. Recent developments
February 2017 | Page 8Recent company developments
Key events over the last twelve months
2017
Jan
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
Dec
to extend for up to a maximum of two (2) additional 5-year terms
Peru – Completion of the Intralot de Peru transaction (Nexus Group)
Nov
Morocco – Signed a 1-year extension with both lotteries
Sep
Successful early Refinancing of a €250m bond with significantly better terms and increased RCF lines by
€40m
Aug
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
2016
Bulgaria – Completion of the acquisition of a 49% stake in Eurobet, a numerical and instants tickets
Jul
operator in Bulgaria
Jun
Italy – Completion of the Gamenet transaction
May
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
Apr
Brazil - Renewal of the contract in with Minas Gerais for a 6 year term
Mar
Launch of Canvas platform
Jan
Development of Competence centres in Argentina, Philippines and Greece
February 2017 | Page 99M16 performance
Key metrics (€mm) Key takeaways
Revenues (Turnover) Strong increase in revenues both in 3Q16 and 9M16 (+16.2%
+7.0% and +7.0% respectively, compared to the same prior year
period
+16.2%
895 958
276 321 Increased sales in Bulgaria, Turkey, North America and West
Europe (Malta and Cyprus) more than counterbalanced
9M15 9M16 3Q15 3Q16 decreased sales in Azerbaijan and South America (Jamaica,
EBITDA Argentina and Peru)
Margin: 13.5% 12.9% 14.8% 10.9%
+2.4% Strong EBITDA growth (+2.4% y-o-y in 9M16)
(14.3%)
121 124
Operating Cash-flow almost doubled in 9M16, mainly due to
41 35
WC improvements (€+2.9m in 9M16 vs €-46.8m in 9M15)
9M15 9M16 3Q15 3Q16
Net cash from operating activities “INTRALOT Q3 was marked by aggressive organic revenue
121
growth, as a result of the company strategy for launching new
products and services and reaping fruits of new projects.
65 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
9M15 9M16
savings in debt-servicing costs and extension of maturities to
Net capex2 2021 combined with the collection of USD 68.7m in cash from
54
the disposal of 80% of our operation in Peru have drastically
45 improved our financial position and capacity to meet our targets
of significantly reduced net debt and improved cash position by
the end of 2016.”
Antonios Kerastaris, Group CEO
9M15 9M16
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 10Regulatory and industry trends overview
Key sector trends INTRALOT’s strengths
Regulation Initiatives
Global regulation changes, driven by country and state budget deficits and
increased demands for social welfare spending fuel: Leading partner for organizations
that want to compete in a
Liberalizations of gaming markets, mainly Internet and mobile markets regulated interactive competitive
Privatizations of state owned lotteries environment
Crackdowns on illegal gaming
End-to-End player experience
New business models focus on growing consumer demand for entertainment
Offers a personalized player
Personalized game offering and content experience
Customer analytics
Technology convergence
Robust, efficient and versatile
An ‘All-in-one’ gaming platform delivering a unified customer experience gaming platform that converges
Convergence of land based and interactive channels land base and interactive channels
Distribution channels
Connects innovative gaming
Mobile is now the primary access point to online retail for most consumers verticals
Competition
Offers extensive business support
Major international competitors shift focus to VLT market and achieving
for optimal customer experience
synergies
February 2017 | Page 113. Key credit highlights
February 2017 | Page 12Credit highlights
7 1
Management experienced
Attractive industry with
at renewing contracts and
sustainable future growth
delivering revenue and
prospects
EBITDA growth
6 2
Leading position in the
Strategy supporting higher
sector with technological
margins and lower debt
innovations creating
loads
significant barriers to entry
5 3
Shift to asset-light model Diversification and scale
and stronger cash flow across geographies and
generation 4
business activities
Highly visible recurring
revenues secured by long-
term contracts
February 2017 | Page 131 Attractive industry with sustainable future growth prospects
Focus on lottery and betting
Global Gaming Market GGY Evolution per product ($bn)
CAGR
496 511
463 478 10-14 14-19
429 437 442 452 447
386 +2% +2% Others
0% 0% Gaming Machines
+6% +4% Casino
+3% +4% Betting
+6% +5% Lottery
2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E
Focus on emerging markets / Strengthen INTRALOT’s presence in Africa
Global Gaming Market GGY Evolution per region ($bn)
496 511
463 478 CAGR
429 437 442 452 447
386 10-14 14-19
+3% +8% RoW
+2% +2% Europe
+7% +4% Asia
+2% +3% Americas
2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E 2019E
Source: GBGC – January 2016
February 2017 | Page 14Leading position in the sector with technological innovations creating
2 significant barriers to entry
Licensed operations
Country % of 9M16 EBITDA
25.5%
#1 market position 11.4 years avg.
contract expiry1
Leading market
position 40.0%
Total 12 countries2 65.5%
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 15Leading position in the sector with technological innovations creating
2 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 SGI
INTRALOT
markets (high GDP growth) 20%
1st in wins 47%
in international
• Approximately 24% market share in the US (11 states + tenders
D.C.) and 50% in Argentina (9 states) in IT to lotteries
Tenders : 75
• Provider of IT to Lotteries in Taiwan, South Korea, New INTRALOT: 35
South Wales (Australia), etc. IGT: 25
SGI: 15
• Recurring revenues–contracts duration between 8-10 yrs IGT
33%
Source: INTRALOT
Well established player in the US
MN
WA MT ND
ID SD ME
OR WI
VE
WY
NE
MI
NY NH INTRALOT Inc. (US)
IA
CT
Established Dec 2001
NV UT IL PA
IN OH
CO NJ
MO RI
CA KS
KY WV VA MD DE
AR TN NC
● 60M population coverage
AZ NM OK
SC
MS AL GA
LA DC INTRALOT
● 24% market share (contracts in 11 states + D.C.)
TX
FL
INTRALOT IGT SGI NO LOTTERY
February 2017 | Page 163 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 Management contracts
30.9%
45 countries
Licensed
Well diversified portfolio with balanced presence operations
39.4%
in developed (through new sales channels) and
developing markets (high GDP growth) Tech and support services
29.7%
Majority of revenues, cash resources and debt 9M16 EBITDA: €124m
obligations outside Greece, thereby mitigating
individual sovereign risk EBITDA by geography1
Other
Russia USA
€24.4bn wagers handled annually with more than Netherlands 2%
8%
22%
3% Malta
100bn transactions processed 6%
Morocco
5%
5,225 people employed worldwide Azerbaidjan
7%
Turkey
Average sovereign rating of operations in the Argentina 19%
high BBB/Baa area (based on EBITDA split) 8%
Jamaica Bulgaria
7% 13%
9M16 EBITDA: €124m
1 Countries with negative EBITDA have been excluded from the chart
February 2017 | Page 174 Highly visible recurring revenues secured by long-term contracts
Major contract expiry (without renewal options)
86% of revenues secured through
Contract type % of 9M16 EBITDA1
multi-year contracts or renewable
licenses until 2020 Morocco 2018 5%
Average contract term of 8 Turkey
2018 14%
(Inteltek)
years
OPAP 2018 4%
Strong track record of contract
renewal (94%) New Zealand 2022 1%
16 operations in 13 countries with
leading market position in the Malta 2022 6%
majority of them Argentina - 13
2017-2023 8%
contracts
Contracts with long-term duration,
providing stability to revenue Azerbaijan 2025 7%
stream
US - 15 contracts 2018-2026 22%
Unique operational model in
Greece - Hellenic
countries allowing INTRALOT to Lotteries5 Shift to asset-light model and stronger cash flow generation
Two pillars to the shift to asset-light Less capex intensive business model
business model Capital expenditure1 (€m) Capital expenditure1/
Syndicate risk and reduce capex by Revenue net of payout
80 71 16%
entering into JVs with local partners 70 67
allowing for minimum equity check 60
58 55
12%
47
while maintaining and selling new 50
7,4% 7,3%
7,3%
contracts 40 6.2% 8%
30 4.9%
Optimize product development by
20 4%
minimizing customization 10
requirements 0 0%
2013A 2014A 2015A 9M15 9M16
Various criteria to select local partners
FY 2015A total cost breakdown
Local experience in industry and
ability to deliver Other fixed
13%
Other variable Game tax
Extensive distribution chain
costs 27%
Winnings HR costs
Well capitalized and long-term 31%
18%
payout
presence 55%
Other
E.g. large utilities or telephonic Fixed costs variable Agents
companies 14% 9% commissions
Direct COS 22%
11%
Highly flexible cost base with 85% of
costs variable
1 Purchases of tangible and intangible assets
February 2017 | Page 196 Strategy supporting higher margins and lower debt loads
EBITDA impact Cash Flow impact
New distribution channels (Self Service Terminals,
Products & Services Mobile)
focus Sport betting
VLT monitoring
Core system
Technology as
Global offering enabler Content management
CRM
Operational Referencing in 50+ jurisdictions
excellence Fertilization
(“know how”)
In existing Examples
business Local relations/ know how
Intralot Inc.
Regulatory constraints
Local partnerships Capital release (equity/ capex)
Intralot de Peru
Intralot Italia
In new Topline and cost synergies
Eurobet
ventures
Globalization
Operational Synergies
Operating leverage
Non core asset disposal
Efficiencies Asset WC optimization
De-leverage
Financing Debt re-pricing
Shift to “asset-light” business model generating positive EBITDA and Cash Flow impact
February 2017 | Page 20Management experienced at renewing contracts and delivering
7
revenue and EBITDA growth
Revenue1 evolution by region (€m)
Europe Americas RoW
Management has achieved Revenue (CAGR 1,915
1,853
12.3%) and EBITDA (CAGR 3.6%) growth despite 1,374
1,539
356
292
1,202
changes in gaming regulatory landscape 246
296 659
134 549
459
376 451
2015A Revenue and EBITDA +3.3% and +13.6%2
compared to 2014A 692 677 785 947 963
Experienced team has demonstrated in-depth FY11
2011A FY12
2012A FY13
2013A FY14
2014A FY15
2015A
knowledge of the gaming sector dynamics
Keys wins
Contract renewal rate of 94% since January EBITDA evolution (€m)
2013 (15 out of 16 contracts)
Europe Americas RoW
47% win rate in international tenders since
2005
195 177
178 175
Successfully entered and gained market share 154
56
on the US market 19 47
73 80
46 51
Successful implementation of internal 60
58 68
restructuring measures aimed at improving 88 70 88
44 30
efficiency
FY11
2011A FY12
2012A FY13
2013A FY14
2014A FY15
2015A
1 Revenue values include eliminations
2 LFL basis excluding FX impact
February 2017 | Page 214. Financial performance
February 2017 | Page 22Overview of key financial metrics
Revenues EBITDA and EBITDA margin
€m Revenues €m EBITDA EBITDA margin
1.800 250 13,5% 12,9% 15,0%
12,7%
1.500 200
9,5% 9,3%
1.200 10,0%
150
900 1.853 1.915
1.539 100 195
600 175 177 5,0%
895 958 121 124
300 50
0 0 0,0%
2013A 2014A 2015A 9M15 9M16 2013A 2014A 2015A 9M15 9M16
Net cash from operating activities and capex Net debt1 and Net debt / EBITDA2
€m Net cash from operating activities Capex €m Net debt Net debt / EBITDA
200 600 3,2x 3,5x
2,9x
153 2,7x 3,0x
500
150 139 2,2x
121 2,1x 2,5x
114 400
2,0x
100 300
67 71 65 534 1,5x
58 55 478 482,3
47 200 403 381
50 1,0x
100 0,5x
0 0 0,0x
2013A 2014A 2015A 9M15 9M16 2013A 2014A 2015A 9M16 9M16 Adj.
Note: 9M15 & 9M16 results do not include discontinued operations in Italy and Peru Adjusted for the proceeds of the Peruvian transaction: €62.3m &
1 Net debt calculated as Long-term debt plus Short-term debt and current portion of long-term debt plus Financial the redemption premium of the 2018 bond: €10.8m
Leases less Cash and cash equivalents
2 Calculated as Net debt divided by LTM EBITDA
February 2017 | Page 23Financial policy
Maintaining a net leverage below 2.0x (post M&As – steady state). INTRALOT can tolerate a peak leverage at
Leverage
up to 3.25x
Cash, liquidity and Maintain strong liquidity at all times. Most of the cash held in the UK, The Netherlands & Luxembourg whereas
debt management our reliance on the Greek banking system is limited to less than 3% of total deposits
INTRALOT’s new strategy is expected to result in a lower level of capex. INTRALOT maintains flexibility in its
CAPEX
capex plan to meet its financial policy guidelines.
Acquisition strategy Currently, 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
Dividend policy
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 Surplus cash is regularly converted from local currencies into EUR or USD (> 50% of deposits) whereas FX risk
management related to the payment of dividends is mitigated via Forwards .
IFRS standards, matching all international standards for corporate governance, reporting systems aligned to
Accounting
listed companies
February 2017 | Page 24Pro 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
218 15/08/2018 9.75%
(Fully repaid/cancelled as of Oct.14th 2016)
Senior Unsecured Notes 2021 249 15/05/2021 6.00%
Senior Unsecured Notes 2021 243 15/09/2021 6.75%
Syndicated Loan Facility 199 2017 E+550bps
Maltco Lotteries LTD Term Loan 4 4.80%
Intralot INC 6 3.25%
Other debt liabilities 8
Gross debt 927
Net debt 482
Net debt / EBITDA 2.9x
LTM Q3-16 EBITDA3 167
1 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 25Joint ventures overview
Rationale for entering into JVs List of Joint Ventures
Attractive point of entry in a given INTRALOT 9M16 EBITDA
Country stake Contract type contribution1
market, with limited capital expenditure Management contract
Turkey
requirements compared to full-scale (Inteltek)
45.00% Manage sports betting on behalf of 14%
national sports betting organization
M&A
Turkey Distribution channel for sports
50.10% 5%
(Bilyoner) betting
Opportunity to establish strategic
partnerships with local players which 49.00% +
Licensed operation
option for
offer substantial market knowledge, Bulgaria
additional
Sports betting and numerical 12%
games
well-established sales network and 2.00%
recognized brand names Licensed operation
Azerbaijan 22.95% 7%
Sports betting and horse racing
Ability to invest in companies in which Licensed operation
Jamaica 24.97% Numerical games and sports 7%
local partners see upside and are betting
therefore willing to retain a controlling 9 facilities management (IT)
stake in Argentina 50.01%
contracts with state lottery
8%
operators & 1 licensed operation
from state lottery organization
Total 53%
1 Excluding countries with negative EBITDA
February 2017 | Page 265. Conclusion
February 2017 | Page 27INTRALOT – a global gaming technology and service company
1 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
Global offering exposure to higher GDP growth
with local No country contributes more than 24% of 9M16 EBITDA1
partnerships Strong contract diversity
Portfolio of 78 contracts and licenses across 55 jurisdictions and 5 continents
Focus on profitable markets and contracts
2 Global leader with a total of 120 patents in gaming technology and gaming management contracts
Gaming In IT lotteries, 24% market share in the US (11 states) and 50% market share in Argentina (9 states)
technology Innovative end to end solutions in every business activity
leadership Focus on core areas of expertise primarily recurring long-term managed services and technology contracts which do not require
significant capital investments
3 Contracts with long-term duration provide stability to revenue streams
Revenue Until 2020, 86% of revenues are secured through multi-year contracts or renewable licenses
visibility and Average contract term of 8 years
improved Strong track record of contract renewal (94%)
margins 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
4 Sustainable Cash proceeds from business sales and asset-light shift used to reduce debt
capital Group to benefit from lower interest costs
structure Focus on more conservative financial policy
5 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
Financial
New asset-light shift is expected to result in lower and more flexible level of capex
policy
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 286. Appendix
February 2017 | Page 29Financial performance – P&L
in €mm 2013A 2014A 2015A LTM Sep-16A 9M15 9M16
Revenue 1,539.4 1,853.1 1,914.9 1298.0 895.0 957.5
Cost of sales (1,271.5) (1,582.9) (1,653.3) (1064.2) (726.8) (789.2)
Gross profit 267.9 270.2 261.6 233.8 168.2 168.3
Other operating income 17.4 18.6 24.9 20.5 17.0 14.3
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 103.3 88.1 79.0 98.3 72.2 72.7
% margin 6.7% 4.8% 4.1% 7.60% 8.1% 7.6%
EBITDA 194.8 175.4 177.2 167.4 121.0 123.9
% margin 12.7% 9.5% 9.3% 12.90% 13.8% 12.9%
Income/(expenses) from participations and investments 12.4 0.0 (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 10.4 12.5 18.0 14.6 11.3 8.0
Exchange differences (11.1) 10.6 3.6 0.8 1.3 (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 53.6 36.6 25.7 33.6 30.8 17.8
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 0.0 0.0 0.0 27.8 (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 30Financial performance – balance sheet
in €mm 2013A 2014A 2015A 9M16
Assets
Non-current assets
Tangible fixed assets 199.4 182.8 166.5 130.9
Investment property 0.0 0.0 5.8 5.1
Intangible assets 353.4 348.9 328.8 337.5
Investment in subsidiaries and associates 25.8 32.6 40.9 120.5
Other financial assets 43.5 36.9 26.1 24.1
Deferred tax assets 14.7 9.0 9.1 5.8
Other long term receivables 77.5 60.6 70.2 60.7
Current assets
Inventories 48.3 52.0 42.6 38.7
Trade and other short-term receivables 221.3 215.1 202.7 163.1
Other financial assets 3.6 0.3 0.0 0.0
Cash and cash equivalents 143.3 416.9 276.6 392.8
Assets held for sale 0.0 0.0 0.0 29.5
Total assets 1,130.8 1,355.1 1,169.3 1,308.7
Equity and liabilities
Share capital 47.7 47.7 47.7 47.7
Treasury shares 0.0 (0.5) (0.5) (1.0)
Other reserves 63.8 59.8 62.2 60.1
Foreign currency translation (61.0) (57.1) (59.4) (63.0)
Retained earnings 215.8 167.6 79.6 83.5
Reserves from profit / (loss) recognized directly in other comprehensive
0.0 0.0 0.0 (2.6)
income and are related to assets held for sale
Minority interest 77.4 100.0 77.8 64.5
Total equity 343.7 317.5 207.4 189.1
Non-current liabilities
Long-term debt 350.3 557.4 716.1 705.5
Staff retirement indemnities 6.9 7.1 6.9 5.1
Other long-term provisions 13.7 6.1 6.6 6.1
Deferred tax liabilities 8.1 14.7 16.1 15.8
Other long-term liabilities 12.1 14.2 19.1 16.6
Finance lease obligation 19.2 8.6 2.0 0.8
Current liabilities
Trade and other short-term liabilities 181.4 175.4 135.3 120.8
Short-term debt and current portion of long-term debt 176.9 232.3 36.2 220.3
Current income taxes payable 11.3 13.6 15.0 6.6
Short-term provision 7.2 8.2 8.6 9.3
Liabilities directly related to assets held for sale 0.0 0.0 0.0 12.6
Total liabilities 787.1 1,037.6 961.9 1,119.5
Total equity and liabilities 1,130.8 1,355.1 1,169.3 1,308.7
February 2017 | Page 31Financial performance – cash flow statement
in €mm 2013A 2014A 2015A 9M15 9M16
EBITDA 194.8 175.4 177.2 121.0 123.9
Interest and similar expenses (55.4) (70.8) (68.6) (51.3) (54.8)
Interest and related income 10.4 12.5 18.0 11.3 8.0
Exchange differences (11.1) 10.6 3.6 1.3 (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 12.4 0.0 (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 53.6 36.6 25.7 30.8 17.8
Net profit before taxation from discontinued operations – – – (12.8) 37.7
Net profit before taxation from total operations 53.6 36.6 25.7 18.0 55.5
Depreciation and amortization 91.5 87.3 98.2 71.9 68.7
Provisions 14.6 10.8 9.6 3.4 2.9
Results from investing activities (2.6) (10.5) (0.2) 0.6 (37.3)
Interest and similar expenses 55.4 70.8 68.6 51.9 55.9
Interest and related income (10.4) (12.5) (18.0) (11.3) (8.1)
Decrease/(increase) of Inventories (3.9) (5.2) 1.2 0.8 1.6
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 139.1 153.0 113.8 64.8 121.1
(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 0.4 0.3 2.1 1.8 2.5
Interest received 8.6 13.6 12.3 10.6 5.9
Dividends received 2.6 1.0 1.9 1.9 1.0
Net Cash from Investing Activities (69.5) (44.9) (59.8) (38.5) (70.4)
Subsidiary's capital return 0 0 0 0.0 (3.4)
Purchase of treasury shares 0.0 (0.4) 0.0 0.0 (0.5)
Cash inflows from loans 492.4 521.2 61.4 46.4 287.8
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) 157.0 (182.3) (152.0) 75.9
Net increase/(decrease) in cash and cash equivalents for the period 28.4 265.1 (128.3) (125.6) 126.6
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