CONTENT THE ESSENTIALS PMU CAFÉ EVERY SATURDAY FRENCH POKER CHAMPIONSHIP THURSDAY OCTOBER 27 PMU CITY SUNDAY JANUARY 31

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1 2016 S N A P - S H O T S

2 OUT OF 365 DAYS, WE HAVE PICKED THE MOMENTS THAT COUNTED FOR YOU. FOR YOU, SATURDAY MORNING PUNTERS, REGULAR RACEGOERS, PASSIONATE POKER PLAYERS, FANS OF LES BLEUS ; FOR YOU IN JAPAN, BRAZIL AND GREECE, WHO ARE DISCOVERING THE THRILL OF FRENCH HORSERACING; FOR YOU, PMU RETAILERS WHO MAKE YOUR CAFÉS A FRIENDLY PLACE TO BE; FOR YOU, ADVISORS WHO ARE ALWAYS ON HAND AT THE COURSE; FOR YOU, TRAINERS, OWNERS, JOCKEYS AND BREEDERS WHO EPITOMISE THE EXCELLENCE OF THE RACING SECTOR; FOR YOU, EMPLOYEES WHO DELIVER ON THE QUALITY DATA, THE QUALITY IMAGES AND THE QUALITY CLIENT EXPERIENCE THAT ARE THE ESSENCE OF PMU. A FAMILY SUNDAY JUMPING UP FROM THE SOFA WILLING YOUR HORSE TO WIN SHARING ONE PASSION FOR AN ENTIRE AFTERNOON CALCULATING OVER AND OVER THRILLING TO EVERY FEAT BETTING, DEBATING, FORECASTING JUMPING INTO EACH OTHER S ARMS THE FIRST BET 2016 Activity Report THESE ARE THE MOMENTS, THE SNAPSHOTS OF REAL LIFE THAT SHOW HOW WE ARE WORKING TO INVENT THE WAYS YOU LL PLAY TOMORROW. AND HOW PMU IS ALREADY CHANGING.

3 CONTENT 04 PMU CAFÉ EVERY SATURDAY 44 SPORTS PARTNERSHIPS THURSDAY JULY 7 12 PMU CITY SUNDAY JANUARY FRENCH POKER CHAMPIONSHIP THURSDAY OCTOBER BOOST ORDRE SUNDAY OCTOBER 9 50 MYPMU CARD WEDNESDAY SEPTEMBER 7 52 CLIENT SERVICE THURSDAY OCTOBER TEXT BETTING SERVICE MONDAY SEPTEMBER EQUIDIA TUESDAY OCTOBER NERVE CENTRE WEDNESDAY JANUARY 3 28 PASSION WORLDWIDE SUNDAY OCTOBER 2 68 THE FUTURE OF GAMING SATURDAY JULY 2 58 EPIQE SERIES SUNDAY OCTOBER 2 36 NEW PUNTERS TUESDAY APRIL 5 THE ESSENTIALS 72

4 Every Saturday, at the PMU bar on avenue Raspail in Gentilly 4 MY CUP OF COFFEE, MY MATES AND MY WINNING SLIP. PMU CAFÉ 5

5 6 EVERY SATURDAY MORNING IT S THE SAME. AT 9 O CLOCK, THE FIVE REGULARS WALK INTO THE PMU BAR WHERE JACQUES IS STANDING BEHIND HIS COUNTER. WELL, MAKE IT 10 PAST FOR JÉRÔME, WHO NEVER WAKES UP TILL HE S HAD HIS FIRST CUP OF COFFEE. WITH ONE EYE ON THE SCREEN AND THE OTHER ON THE NEWSPAPER, THEY WORK OUT HOW TO CHANGE THE WORLD AND WHO WILL WIN THE DAY S BIG RACES. THERE S BANTER ABOUT THE PREVIOUS WEEKEND S RESULTS AND PLENTY OF HEARTY LAUGHTER. HERE, OR ELSEWHERE, IT S A SCENE YOU CAN SEE IN ANY PMU: FRIENDS AND STRANGERS, THEIR ELBOWS ON THE BAR, ALL UNITED AROUND A SINGLE PASSION. PMU CAFÉ 7

6 " THEY DEBATE, THEY COUNT, THEY EXPLAIN, WITH ONE EYE ALWAYS ON EQUIDIA. PMU CAFÉ 8 9 Since 2014, PMU has implemented a plan to transform its 13,200 sales outlets. More colour, more information, digital terminals these new spaces are designed to appeal to all punters. In addition to traditional PMU venues for seasoned racing fans, Happy PMU and PMU Express are geared to the needs of a new clientele.

7 BEING OUT IN THE OPEN AIR, WHETHER YOU RE 20 OR 80 YEARS OLD, CALCULATING OVER A PUNTER S TALE AND OVER, RECALLING THE ENTIRE CAREER OF A PARTICULAR HORSE, HAPPY TO BE THERE, 10 WITH OTHER PEOPLE, SHARING THE SAME PASSION FOR A WHOLE AFTERNOON. THAT S WHY I LOVE GOING TO THE RACES! Philippe, age 52, a horseracing fan for 10 years 11

8 PMU CITY That day, you really had to be keen to turn out in the cold, pouring rain that had been falling on Paris for hours. But there was no way I was going to miss the Prix d Amérique, which was due to go off at precisely 4:20pm. With my neighbour Hubert, who s been my friend for 30 years, we d decided to watch the race in Cinemascope at the PMU City on rue du 4 Septembre. When we went in the door, we were impressed by its hi-tech style, yet at the same time, we immediately felt at home. There were already a dozen other people there with their eyes fixed on the huge flat screen, listening religiously to the pre-race commentary on Equidia. C I N E 13 M A S C Sunday January 31, 1:30pm at PMU City Opéra, 28 rue du 4 Septembre, Paris O P E 12 To complement its nationwide network, PMU has opened 22 locations exclusively devoted to horserace betting. Situated in town centres throughout France, they offer both expert and novice punters the full range of PMU services in a sleek, hi-tech environment.

9 We took a seat at a high table and began to chat about this and that, listening in to what they were saying at the tables next to ours. And then, we got down to work, filling in our slips and placing our bets, in a few clicks, at a green terminal. We were really focused. Then we waited for the start of the race, broadcast as it happened on Equidia Live. Suddenly, they were off. We held our breath. It was almost like being at the racecourse, minus the wind. The horses were flying, sweating; the people were shouting. It was the favourite, Bold Eagle, who crossed the line first. All of us there went over the race again and again with the help of the slow-motion replays. Before we knew it, it had gone 6 o clock, and so reluctantly we had to get back, what with work the next day. Outside, the rain had stopped. A few passers-by were hurrying on their way. As I left Hubert at the corner of the street, I looked back at the window of the PMU City all lit up in the night. It was the only one. PMU CITY 14 15

10 17 BOOST ORDRE A MILLION 16 Sunday October 9, PMU City Opéra, Paris TO SHARE! Every Sunday since October 6, 2016, the Boost Ordre has offered a 1 million bonus to be shared between winners of the Quinté+ in the right order, over and above the order return, the daily Jackpot and the Super Jackpot on Epiqe race days.

11 19 BOOST ORDRE 18 Pascal is on edge. Fifteen minutes before the start of the third race the Quinté+ he still can t make up his mind. Hawk the Talk will be in the first three, that s for sure, but where? All around him, there s feverish last-minute activity. As soon as a terminal is free, it s immediately taken by a new punter. He has a last glance at the odds, then decides to trust his instinct It s just that the stakes are so high this Sunday. That new thing, the Boost Ordre, it makes all the difference. You have to be spot on, and you have to be shrewd! He s trembling as he heads back in front on the TV screen, his betting slip in one hand. A few minutes later, it s all over: When Vapalo went ahead of Eaux Fortes, I said to myself, it s ok I won! he says with a smile on his face. Now, the question is with how many other victorious bettors he will share the million!

12 Monday September 12, text sent at 11:09am, Isigny M1R1 T O W I N 5 5 No, it s not a coded message. It s the text Olivia has just sent via her MyPMU card account to In other words, Olivia has placed a 5 single win bet in Meeting 1, Race 1, on horse number 5. History does not tell us if she got it right. Since September 12, 2016, thousands of punters have texted a bet from their smartphone. TEXT BETTING SERVICE 21 Last autumn, PMU launched its text betting service, which allows clients with a PMU account to place bets in a few clicks via their smartphone. In barely three months, this new service has really caught on, with customers delighted to be able to bet in full autonomy. 20

13 INNOVATION: PUTTING THE PUNTER FIRST INNOVATION New ways of betting, digitally upgraded outlets, new mobile uses The betting experience is invented and reinvented every day at PMU. Innovation is a mind-set that is key to our corporate strategy and our in-house culture: at PMU, not a day goes by without us thinking of new ways to benefit the punter. UPGRADING 10 SALES OUTLETS EVERY DAY The challenge in transforming our sales outlets a programme implemented from 2014 as part of the PMU 2020 strategy was to introduce digital technology without changing the friendly atmosphere. Better segmented, three new outlet concepts PMU, Happy PMU and PMU Express are an opportunity to attract new types of punters to horserace betting, while at the same time enriching the experience of seasoned racing followers. Offering new digital betting practices and bespoke information services, our terminals feature profile-specific interfaces designed both for experts, who can enjoy more autonomy and information, and for novices, who are guided and supported in their discovery of the betting experience. Of the total 13,200 outlets constituting our network at year-end 2016, 52% have already been segmented, including 3, outlets a day last year alone. These upgraded outlets are already registering improved performance, in the order of 1.5 points additional growth and almost 4% more growth with new terminals are added. A series of new, wholly owned outlets, called PMU City, exclusively devoted to horserace betting, are also opening in cities across France. Offering the full range of PMU services, these facilities boast an attractive approach and an immersive experience geared to the punter. Five new outlets opened in 2016 (four in Paris, one in Boulogne-Billancourt), adding to the 17 existing locations. The strategy is to build a solid network that will bring betting back into city centres. Last but not least, 2016 represented the last full year of the roll-out of our new client experience at racecourses, focused on the customer rather than the bet. This more modern concept offers punters an experience enriched by digital technology and information, yet retains all the emotion and passion of the live event. BUILDING LOYALTY, OFFERING SUPPORT: LOOKING AFTER THE PMU PUNTER Whether at a terminal, on a smartphone or watching a computer screen, a PMU punter is never alone. Client support is at the heart of our activity. In order to speak with one voice, in early 2016 PMU relaunched its offline loyalty programme under a single label, MyPMU, which now covers the MyPMU+ programme, the MyPMU.fr information website, the MyPMU application and AlloPari. Central to this initiative, the MyPMU loyalty card has witnessed a significant boost: at year-end 2016, it numbered 220,000 holders and benefitting from more targeted operations succeeded in doubling the value of bets placed to over 220 million. PMU customer service is constantly evolving, and was recently voted 2017 Client Service of the Year a reward for its effort and commitment over several years in putting in place a genuinely helpful, user-friendly and multi-channel service. Since the launch of the chat service in 2011, PMU client service has consistently enhanced its presence, extending its opening hours and increasing its number of platforms in response to new usage patterns. This has proved to be a win-win strategy because above and beyond the 805,000 contacts a year managed by client service a community has been formed to duplicate online the exchanges that contribute to the unique ambiance of our sales outlets. A PMU punter can thus obtain at any time advice and assistance adapted to his situation and experience, either from a fellow punter or from a client service operator. A MODERN, CREATING DYNAMIC OFFER Back in 1968, PMU launched the first telephone bet. Fifty years on, innovation in betting practices remains a key driver for PMU, which understands and embraces social and lifestyle changes. Developed in record time, our text betting service open since September 2016 represents a feat of technology which has quickly found a place in punters routines: more than 857,000 bets placed with total stakes of over 18.5 million in just three months. Far from cannibalizing other betting methods, text betting is an additional channel which widens accessibility previously limited by the restricted opening hours of sales outlets. The My PMU application is also moving forward, and now offers a receipt scan feature which enables punters to independently check their winnings anytime, anywhere. Both these innovations capitalize on the increasing popularity of smartphones to modernize betting and bring digital technology into the point-of-sale experience. Innovation also means regularly launching new products to keep punters interested. Launched on October 6, 2016, the Boost Ordre rewards the sagacity of the punters on PMU s iconic bet, the Quinté+. Supported by an extensive advertising campaign validating the passion of punters, the Boost Ordre offers a 1 million bonus to be shared between exact order winners of the Sunday Quinté+. This win-win operation has enabled us on average to triple in-the-order winnings, to stabilize penetration of the Quinté+ and to boost the total value of bets placed on the day via a knock-on effect of the entire range. The Report+, meanwhile, is an updated, more entertaining version of the Report, allowing winnings to be reinvested in a wider range of bets (Couplé Gagnant, Couplé Placé and 2sur4) and offering new functionalities. The relaunch was well received by punters, achieving immediate success with stakes up 34% over ENHANCING THE APPEAL OF RACING AND BETTING In 2016, the Racing Associations launched a brand new programme, the Epiqe Series, focused on 14 key race meetings, which are promoted as major sporting events. Designed to offer the wider public a clearer, more appealing presentation of horseracing, the initiative is supported by PMU, in particular with the introduction of a Super Jackpot of 10 million on the Quinté+ for each stage of the Epiqe Series. CHANGING TOOLS AND METHODS TO UNLEASH IN-HOUSE INNOVATION POTENTIAL EASY, the project to transform the PMU information system, involved three years of development, 80,000 man-days, 180 employees and the transfer of 22,000 IT components. The result is a modern, efficient and adaptable tool enabling the company to regain its full operational capacity and drive forward its strategy of innovation. As well as reducing by 50% the roll-out time of new products, EASY allows PMU to benefit from a much greater calculation frequency, and therefore to offer its clients increasingly precise real-time information to improve their betting. The fact that PMU successfully managed this technological challenge watched by the entire sector worldwide demonstrates once again that we have the means to achieve our ambitions, and that we will stop at nothing to deliver a modern, innovative betting experience in line with the expectations of punters. Whether it is a global initiative involving all employees, idbypmu, a coordination structure for open innovation, PMU Lab, or an organizational change to increase agility and address projects differently, at PMU innovation is a driving force mobilizing all our talents for the benefit of punters.

14 EQUIDIA BREATH-TAKING Tuesday October 25, Auteuil RENNSENAS IS THE STAR OF THE DAY ON EQUIDIA LIVE. IT S TUESDAY AND MARIE HAS BET A BIT MORE THAN USUAL. SHE COULDN T GO TO THE RACECOURSE, BUT SHE CAN FOLLOW THE RACE RIGHT UP CLOSE ON EQUIDIA LIVE. AND RIGHT UP CLOSE, IT S EVEN MORE REAL. In September 2016, Equidia Live revamped its live racing coverage. Races have been presented from a brand new multiplex studio featuring a vibrant, fast-paced, standing presentation, an image wall, a more sports-oriented design, live data and expert analysis all to enhance the racing experience for punters.

15 TWO YEARS AGO, I HAD TO MOVE TO A NEW AREA. I WAS A LITTLE BIT LOST FOR THE FIRST FEW WEEKS, THEN I STARTED TO GET USED TO IT. A PUNTER S TALE ABOVE ALL, I FOUND MY CAFÉ. THE THING ABOUT THIS CAFÉ IS THAT IT S ALSO A PMU, AND IT INTRIGUED ME TO SEE THE REGULARS GETTING 26 ALL EXCITED WATCHING THE SCREENS. ONE DAY, I DECIDED TO HAVE A GO. AT FIRST, I STAYED IN MY CORNER, I DIDN T WANT ANYONE TO SEE. THEN ANTOINE NOTICED WHAT I WAS DOING. I THOUGHT HE WOULDN T WELCOME A NEWCOMER. INSTEAD, HE GAVE ME A BIG SMILE AND TOLD ME WHO TO BET ON. SINCE THEN, I VE WON A FEW BETS, BUT MOST OF ALL I VE MADE A LOT OF FRIENDS. Christophe, age 28, a horseracing fan for 2 years 27

16 Sunday October 2, Kyoto 28 A RUSH OF EMOTION PASSION WORLDWIDE わーっ 29 Like Chikayo, two million Japanese had eyes only for Makahiki, the country s star racehorse, in the Qatar Prix de l Arc de Triomphe at Chantilly. For the first time in 2016, Japan opened betting on a foreign horserace, the world s greatest flat race The Arc. More than 37 million in bets were placed in Japan a record!

17 Sunday March 13, Gavea Racecourse, Rio de Janeiro PASSION WORLDWIDE ARAVILHOSO! Luis watches in amazement as Vagner Borges, one of Brazil s top jockeys, rides the star of the day Genial Storm to victory! Since late 2015, PMU has been working to revive the Brazilian market via its subsidiary, PMU Brasil, and a close partnership with Rio s Jockey Club Brasileiro. In December 2016, Brazilian punters joined the PMU s common pool, and now have the opportunity to bet on French horseraces.

18 Saturday November 19, Markopoulo Racecourse, Athens 32 PASSION WORLDWIDE E λ A 33 Maria s mad about horseracing, but she s worried sick for her favourite. Standing on her seat, her eyes glued to the track, she squeezes the hand of her little sister Antonia, who s come with her for the first time today. In November 2016, PMU returned to the Greek market via a partnership with local operator OPAP. Greek punters can thus once again take advantage of most common pool bets on French races.

19 PMU, EXPORTING EXPERTISE PASSION WORLDWIDE 34 PMU s international activity broke records in 2016, further confirming our role as a growth driver for the business. PMU now has 67 partner operators importing French horseraces, images or bets in 48 countries, as well as three wholly owned overseas subsidiaries. A quality product, unique savoir-faire à la française PMU is exporting much more than just entertainment. A WINNING STRATEGY FOR PMU, FOR PUNTERS AND FOR THE ENTIRE HORSERACING SECTOR At year-end 2016, PMU broke the symbolic 1 billion barrier of common pool bets placed internationally (an increase of 29%). Alongside luxury goods companies and carmakers, PMU has entered the very select club of French businesses that are successful exporters. This success validates the strategy of PMU 2020, which placed international development at the heart of the company s ambitions. It is therefore natural that the acceleration of this plan, PMU , should make international business a key focus of growth via the consolidation of B2C and the development of B2B activity. Behind these figures, what the international success of PMU highlights above all is the unrivalled quality of French horseracing and its betting offer. Put simply, success would not be possible without a distinctive, quality product. The expertise of PMU and the excellence of the French horseracing industry thus represents substantial competitive advantages in export markets. Offering a larger number of starters than their foreign equivalents, as well as unparalleled organization and broadcast quality, French horseraces are popular with punters throughout the world. It is the work of the entire sector and in particular its integrity that makes the difference. The constant growth of PMU common pools is another international advantage. With the addition of Brazil and Greece, 23 countries now contribute to a single pool, which is the largest in Europe. More interesting returns, stable odds and attractive winnings make the PMU common pool a favoured playground for punters around the world. The growth of this international pool benefits all punters, including those in France, who can see returns and winnings evolving positively through an effect of scale. PMU s international business also includes the import of foreign races. In 2016, more than 3,700 races from 23 countries were offered to French punters. With a significant increase in the value of bets per race and a total of 800 million for the year, the coordination with racing associations and Equidia on the structure of the schedule has clearly borne fruit. ONE PMU, SEVERAL PERSPECTIVES In order to develop its international business, PMU has adopted two strategies according to the specificities of the relevant market. Firstly, B2B, where PMU joins forces with a local partner (racing association, betting operator, lottery etc.) to market its offer. Secondly, B2C, where PMU acquires or establishes a wholly owned local subsidiary. At year-end 2016, PMU had B2B partnerships in 48 countries with 67 operators, thus ensuring a worldwide presence for French horseracing and its betting offer. PMU offers a package tailored to the needs and characteristics of each operator. These partnerships can involve a common pool offer, a separate pool offer, or both at once, depending on the races and the bets. Common pool enables punters from the country in question to play into a single pool, shared with punters from all other participating countries, and therefore to take advantage of particularly attractive returns and winnings. Separate pool creates a pool that is restricted to the partner country. In this case, PMU markets race images and information. PMU s B2B activity performed well in 2016, notably in the case of recent partnerships such as Norway. The Quinté+ proved hugely successful, including on flat races in countries traditionally more focused on trotting. Hungary joined the PMU common pool in early 2016 and is already achieving very promising results. Greece opened the PMU common pool to its punters at the end of the year, which should greatly contribute to relaunching its horseracing sector. In separate pool, Australia recorded another year of remarkable performance, while for the first time ever, Japan offered its punters a foreign race, the Qatar Prix de l Arc de Triomphe, taking 37 million in bets more than twice the value of bets placed on the same race in France. In B2C, the priority is to consolidate and develop the three PMU subsidiaries in Belgium, Germany and Brazil. These markets are at very different levels of maturity and have specific characteristics that necessitate a made-tomeasure approach. In Belgium, with Eurotiercé, growth has continued since its acquisition in Stakes have increased six-fold, notably as a result of the dynamism of the online horseracing offer. To capitalize on these positive results, in 2017 the subsidiary will enjoy the local exclusivity of the PMU common pool betting offer, which should enable it to further increase its market share. In Germany, PMU took a majority stake in the capital of the local operator, German Tote, in 2015 and has since focused its efforts on renewing the digital offer and consolidating its presence in physical channels at sales outlets and racecourses. Both are important vehicles for betting, which can also contribute to our thinking on market conditions in France. Finally, in Brazil, since the launch of PMU Brasil in late 2015, PMU has been working with its partner Jockey Club Brasileiro to boost the horseracing sector and the betting market. At year-end 2016, there were 90 sales outlets proposing a varied offer, also accessible by telephone and internet, generating 51.1 million worth of bets. To celebrate its first anniversary, PMU Brasil opened common pool betting on French races to Brazilians, thus contributing to the development of the offer and the attractiveness of horserace betting throughout the country. EXPLORING NEW TERRITORIES PMU is continuing its strategy of moving into new markets, mainly via B2B partnerships. Our international development teams analyse each market and identify the best partner to deliver an offer tailored to its specificities. In China, for example, horserace betting is prohibited. PMU and the French horseracing sector are working together to persuade the country s political and economic decision-makers to put in place a consistent, controlled model. The opening of a representative office in Shanghai in September 2016 signalled the determination of the entire sector to move ahead as one. A series of measures placing of French instructors in local riding clubs, certification of clubs according to a frame of reference inspired by the French model, guidance for the sector s professionals are being employed to promote an expertise covering all aspects of the equine sector in order to convince the authorities of the advantages of developing a Chinese horseracing industry. With more than one billion potential punters in Africa, PMU is also looking closely at this continent. In order to expand its business, in 2016 PMU established, with Pari Hippique et Services, a company named PMU Partenaires, based in Paris. Already present via 14 partnerships with separate pool betting, PMU is planning to agree new contracts with States and local lotteries, both to develop common pool horserace betting and to extend the offer and ways of betting. Having worked with African lotteries in French-speaking markets for more than 20 years, PMU is capitalizing on its brand awareness and reputation as a trustworthy partner to further develop its footprint in English and Portuguese-speaking countries. Thanks to the strength of its model and the quality of its races and betting offer, PMU has turned the export of its expertise into a major competitive advantage in order to secure its future and the development of the French horseracing sector. However, more than its international clout, it is PMU s ability to understand the needs of foreign markets and adapt our strategy that has enabled us to transform opportunities into successes and continue to extend PMU s ambitions overseas. 35

20 36 NEW PUNTERS I T S M NEW PUNTERS Y V E R Y F I R S T 37 T I M E At a TV or computer screen, on a smartphone, in the metro or at a sidewalk café, a new generation of punters is emerging. More connected, more immediate, their experience is giving rise to new ways of betting, mixing emotion with technology. Horserace betting. Toulouse. Tuesday April 5 8:12pm So that s it. Fred, age 23, has placed his first Quinté+. It was a bit of an impulse, really. He followed the forecasts, which is the best thing to do, particularly as he s not yet sure exactly how odds work. Anyhow, he s set a reminder on his mobile: tomorrow, 1:47pm, the Grand Prix d Angers Loire Métropole. That s convenient, it s during his lunch break, so he ll be able to follow it on his phone.

21 NEW PUNTERS Sports betting. Strasbourg. Thursday July 7 10:02pm Horserace betting. Levallois-Perret. Tuesday May 10 2:48pm Pauline is betting on the France v Germany match. Stealthily, she taps on her smartphone under the table, hidden by her napkin. She knew she shouldn t have accepted the invitation to dinner with her company s German delegation. Not when there was a football match What a nightmare! But it looks like the wind is turning. Perhaps now is a good time to place a bet! Not with them, that would be a slippery slope. The PMU app is more discreet! She ll be able to savour her victory all she likes when she gets back home. Alex is focused on Equidia Live, he is following the first race he s ever bet on 17 runners! Alex didn t fancy the Quinté+. He preferred to put all his money on one horse with a single win bet. He chose Allez Henri, because the name made him laugh. And apparently it was a good choice, because Allez Henri is in the front three right from the start. It all happens so quickly that Alex finds it hard to keep up! But, halfway down the home straight, his horse takes the lead. A few seconds later, Alex has won his first bet! Call it beginner s luck.

22 40 NEW PUNTERS 41 Sports betting. Nice. Thursday November 3 1:30am Poker. Lyon. Thursday September 15 9:13pm It s halftime. Fanny has gone into the kitchen for a glass of water to help calm herself down a bit. She s supported the Bulls for 10 years now. She s got all the kit the cap, the shirt, the posters but she d never thought of betting on her favourite team. For the moment, the Celtics are two points ahead, but it s not over yet. She s left Pompon with the PMU.fr stream, hoping he won t start attacking the mouse Loïc is attempting his first bluff. And he s pretty proud of his idea: for his profile on PMU Poker, Loïc has decided to confuse everyone with a photo of himself when he was little, dressed up as Spiderman. He s not yet chosen which table to join, but one thing is certain: his bluffing skills are already honed!

23 YOU HAVE TO ADMIT, IT S A LOT MORE EXCITING THAN THE AFTERNOON SOAP! I COME HERE EVERY WEDNESDAY AT 11 O CLOCK, A PUNTER S TALE AND AFTERWARDS I PICK MY GRANDSON UP FROM SCHOOL JUST ACROSS THE ROAD. BEFORE I GET HERE, I VE STUDIED THE ODDS 42 AND WRITTEN EVERYTHING DOWN IN MY LITTLE NOTEBOOK. YOU CAN T JUST TURN UP UNPRE PARED THERE S SOME STIFF COMPETITION! WE COMPARE NOTES, WE HAVE A DISCUSSION. NOTHING S DEFINITE UNTIL THE BET IS IN! BUT WITH ALL THAT, IT S LIKE BEING A TOP CHESS PLAYER, AND NOTHING GIVES ME MORE SATISFACTION THAN SEEING THE RACE UNFOLD EXACTLY AS I PREDICTED. IT S AN ART! Claudine, age 74, a horseracing fan for 24 years 43

24 SPORTS PARTNERSHIPS WORKING FOR ALL THE PMU S ACTIVITIES SPORTS PARTNERSHIPS 44 SPORTS PARTNERSHIPS: SHARING THE PASSION When the French sports betting market was opened in 2010, PMU chose to embrace the launch and development of this activity by stepping up its investment in sports partnerships. This strategy enabled the company to gain a foothold in the sports betting sector by highlighting the natural ties between sport and PMU. PMU now intends to go beyond its initial brand awareness strategy towards a more targeted positioning, focused on the passionate relationship between punters and their favourite clubs, in order to establish a real connection with its network of sales outlets. SPORTS PARTNERSHIPS, AN IMAGE CATALYST THAT BENEFITS ALL PMU ACTIVITIES A key player in the world of sport for more than 30 years, PMU shares its values and has always worked to nurture the enthusiasm of supporter communities. In 2010, the strategic priority was to spread the word that PMU was extending its activities beyond horserace betting, and to win a place in the hearts of sports bettors in order to accompany their passion. PMU therefore increased its national partnerships via an agreement with the French Football Federation. It also implemented a series of initiatives designed not only to promote the sports betting offer, but also to publicise horserace betting and build bridges between the two disciplines. PMU has now successfully established itself as a sporting brand, rather than merely a horseracing organisation, and has created a virtuous circle where every success generates a positive knock-on effect for all its activities. EURO 2016, A LIFE-SIZE TEST FOR PMU STRATEGY For PMU, success at EURO 2016 (a football championship playoffs) meant capturing a significant share of sports betting during the tournament in the face of fierce competition, while limiting a decline in horserace betting over the same period. To achieve this objective, PMU rolled out a comprehensive and innovative strategy, online and in sales outlets, focused on its partnership with the French national football team ( Les Bleus ). Supported before the tournament by a high-profile 360 advertising campaign entitled The Footballers, as well as a visit by the team to the Vincennes racecourse, where 20,000 supporters were able to experience horseracing, the PMU action plan combined non-stop operations in the betting network and cross-activity promotions for an entire month. To capitalise on the excitement generated by the tournament, some of PMU s 13,200 sales outlets were renamed Bars des Bleus, complete with a second-surface window graphic and a range of events organised around matches. Appearances by former players, sports quizzes with horseracing presenters, Quinté+ des Bleus no effort was spared to turn sales outlets into convivial places to follow the matches and to discover horserace betting. Alongside such initiatives, PMU launched a number of major commercial operations to attract new clients to horserace betting and build the loyalty of existing punters: 9 jours 100% gagnants, a 10 million Les Bleus Jackpot ( 15 million for the final) for every match involving the French team, betting vouchers for new players PMU thus capitalised on its image as a partner of Les Bleus to support its core activity. With stakes of over 22 million and a 19.7% increase in sports betting, PMU s excellent performance at EURO 2016 confirmed the essential role of sales outlets in uniting communities of supporters supporters who are not only attached to their team, but also to the places where they get together to share their passion. CLUB PARTNERSHIPS, BRINGING SPORT INTO THE COMMUNITY Buoyed by its outstanding EURO 2016 and the success of its Bars des Bleus concept, PMU redirected its partnership strategy towards new clubs with very strong regional ties and very active communities. PMU thus decided, for the 2016/2017 season, to support clubs with a clear identity and a captive audience. This strategic reorientation enabled PMU to reach out to communities of supporters and to establish a more affinity-based territorial network by supporting each club with specific operations. In domestic football, in addition to its existing partnership with Paris Saint-Germain, PMU linked up with Racing Club de Lens, Racing Club de Strasbourg, Stade Rennais and Stade Lavallois. In rugby, PMU joined forces with LOU Rugby, Racing 92, Stade Toulousain and Rugby Club Toulonnais. To promote these club partnerships, PMU identified sales outlets where local supporters congregate in order to turn them into branded venues, destined to be the focus of commercial operations and social events. By capitalising on this familiar territory, and by combining sport with horseracing, PMU brought passionate fans into its world, enabling them to discover our full range of activities. These partnerships will also offer punters unique experiences thanks to close collaboration between PMU and each of the clubs involved: meetings with players, tours of sporting facilities, operations in stadiums and at racecourses, online offers tailored to individual clubs In the future, supporters will feel at one with their team and with PMU. 45

25 47 W E L L M E E T AGAIN SPORTS PARTNERSHIPS Thursday July 7, 10:45pm, France v Germany, semi-final. Le Nouryad, Marseille 46 For Thomas, it s a relief after the trauma of Seville. He s been waiting for this moment for 34 years! Tonight, dozens of fans are gathered round Marcel Dib in the PMU Bar des Bleus, just a few miles from the Vélodrome stadium, playing the Quinté+ des Bleus and celebrating long into the night

26 49 Thursday October 27, 08:05pm, Paris FRENCH POKER CHAMPIONSHIP H O M E GAMES! 48 From October 27 to November 6, 2016, the French Poker Championship, PMU s online poker tournament, returned for its sixth edition with 90 tournaments organised over 11 days and 1 million in prize money. 3 rd floor, right Julien is sure Sarah will be back soon. 3 rd floor, left Paul has fallen asleep over his poetry. 2 nd floor, right The Benoît, the latest neighbourhood gossip. 1 st floor, right Valérie just can t get to sleep. 1 st floor left For Adam, nothing else exists. Focused family are trying to persuade Théophile to eat his pureed carrots. 2 nd floor, left Mireille is telling Jeanine, her friend of 30 years, on his screen, he is determined to win this last hand.

27 Wednesday September 7, 1:28pm, Lacanau 50 I KNOW IT S THERE SOMEWHERE! HANG ON, HOLD THAT! NO, THAT S MY GYM CARD, THAT S WHAT ON EARTH IS THAT? AH! IT MUST BELONG TO MY SON DON T MOVE, I KNOW IT S NOT FAR AWAY LIPSTICK, GLASSES CASE KEYS KEYS! GREAT, THERE IT IS! M Y P M U C A R D 51 In 2016, PMU relaunched its retail loyalty programme around the MyPMU card. With more than 220,000 holders at year-end 2016, the card doubled the value of bets placed using it and allowed for the development of more targeted offers.

28 CLIENT SERVICE On Thursday October 13, PMU was voted Client Service of the Year 2017 ÉLODIE, NICOLAS, MICKAEL, KITIPHONG, AURÉLIEN, ISSAM, MARGOT, ROMÉO, ADELINE, NAJAT, VALÉRIE, FABRICE, THOMAS, ANGÉLIQUE, DWAYNE, KEVIN, BODRICK, JÉROME, LINDSAY, FRANCK, FANNY, CORINNE, ANNABELLE, MANUELA, NAZHA, ARNAUD, CORINNE, CLÉMENT, VANESSA, BENJAMIN... PMU client service handles 805,000 contacts a year across multiple platforms: social media, chatrooms, telephone services, PMU punters community. This award recognises the efforts of our teams to enhance the consistency and commitment of their approach, to innovate in terms of usage, and to ensure the relevance of their response to punter s needs.

29 Wednesday January 3, Midnight, Somewhere in France NERVE CENTRE N E R V E 1,800 TRANSACTIONS A SECOND. 1 MILLION CONTACTS AN HOUR. 54 CENTRE 55 That s the quantity of data handled by the PMU Data Centre. As impressive as they are, these figures do not faze the teams who brilliantly supervised the transfer of all PMU s data to its new Data Centre. A switchover that took place in the wink of an eye (or almost), without any interruption in service, and which enables PMU to offer all punters the highest levels of reliability, accessibility and security.

30 56 A COMPANY AT THE CUTTING EDGE OF DATA PROCESSING NERVE CENTRE 57 Data management is a key element for the future of all companies and this is particularly true of PMU, where one million contacts are generated every hour on average. At PMU, one hour represents 200,000 horserace bets, 300,000 transactions, 30,000 account movements, 25,000 poker hands, 400,000 web tags, 700 information flows, 2,000 sports bets and 100 contacts with client service. What these head-spinning figures reveal is that PMU is a company for which data collection, storage and processing is not only an essential expertise, but also an opportunity to continuously improve its offer and its client knowledge. COLLECTING TO CREATE VALUE PMU is a formidable force for collecting, digesting and producing data. Its robust and recently enhanced information system and its new Data Centre enable PMU to aggregate an exponential volume of data derived from every point of contact with customers and within the company. At PMU, digital data is everything: the bet exchanged between the punter and the operator; the races that influence the odds; race day information; transactions; loyalty programmes; interactions with client service In fact, the heart of PMU s business is its capacity to transform data into information that can be used by its employees and its customers. It is this expertise which PMU has cultivated since the beginning and which, today, makes it a competitive digital enterprise that has utilised technological progress in order to advance its business model. Currently France s third largest e-commerce site by volume of transactions, PMU adds value by transforming these points of contact into opportunities to better know its clients. UNDERSTANDING TO ENHANCE SATISFACTION PMU is on permanent lookout for new opportunities for contacts and transactions. Like any commercial enterprise, its role is to understand the usage patterns and behaviours of its clients, both existing and potential, in order to improve the relevance of its offer. By taking advantage of the volume of data it collects, PMU seeks to understand and anticipate the demands of its customers in order to improve the service it offers and optimise all its betting platforms. It was such analysis, for example, that shaped the new sales outlet concepts (PMU City, PMU Express, Happy PMU), inspired the development of specific interfaces on terminals, and gave rise to new practices such as text betting. PMU s focus on data helps to identify gaming behaviours. The aim is not to collect personal data, but instead to understand what motivates a punter to place one bet rather than another, to use a particular channel at a particular time of day, to react to changing odds or information they receive all the while respecting their choice to remain anonymous or to identify themselves via an account or a loyalty programme. Thanks to such precise behavioural understanding, PMU is able to continuously improve its capacity to provide punters with personalised offers and adapt its information to their needs. Above and beyond marketing considerations, the knowledge PMU derives from this flow of data also enables us to detect risky behaviours at a very early stage. Responsible gaming is a PMU priority which does not stop at raising awareness among punters. It is a reality intrinsic to the information system, which analyses and compiles the data necessary to ensure the safety of punters. Anticipating risk is an ongoing project, be it individual behaviours or organised phenomena. The fact that PMU is capable of aggregating data to identify suspect cases and safeguard the entire betting network is a guarantee it offers to both its punters and its supervisory bodies. BIG DATA, THE ACCELERATION OF PMU STRATEGY To take full advantage of the opportunities offered by data processing, PMU initiated in 2015 a Big Data project, the first stage of which was implemented in The objective was to create a company-wide Data Lake pooling all commercial, product and client data derived from every point of contact, both physical and digital. The first concrete manifestation of this strategy was the internalisation of prospect recruitment initiatives and the handling of targeted marketing campaigns. Effective since summer 2016, this project has enabled PMU to improve the quality and relevance of our campaigns, to reduce costs and to accelerate the response times of our marketing teams. In September 2016, PMU launched a Big Data Lab, where data scientists a new specialisation within the company further interpret the data. Their role is to extract meaning from the huge mass of data, to spotlight actionable elements and project leads, and to make this information available to all employees in order to refine their thought processes. Interactive marketing in sales outlets, a proactive response to risky behaviours, optimisation of equipment availability the opportunities opened up by Big Data are not only endless, but also completely in line with the natural evolution of PMU and its relationship with punters: a trusting, personalised relationship, where the knowledge of one enriches the experience of the other.

31 EPIQE SERIES T H E CLASSICS: T R U L Y 59 EPIQE! In 2016, PMU and the racing associations revamped the horseracing schedule to create a Champions League of the 14 biggest French events. Backed by media support worthy of top sporting occasions, the Epiqe Series championship will rekindle the public s love affair with horse racing. Sunday October 2, 2016, Qatar Prix de l Arc de Triomphe 58 Kimiyo can hardly contain her excitement. She arrived just last night, on a direct flight from Tokyo, to see Makahiki, the only Japanese runner in the Qatar Prix de l Arc de Triomphe. Oh, and she ll fit in a little shopping, of course! Her father couldn t come, and with every text message she sends him, he complains that bit louder.

32 EPIQE SERIES Sunday January 30, 2017, Prix d Amérique Opodo Jackie has managed to work her way right to the side of the track. In between races, she loves watching the ballet of horses arriving and departing. She s sure that Bold Eagle will win again this year. And when she has her lucky flag, nothing bad can happen!

33 EPIQE SERIES Sunday February 12, 2017, Prix de France Flavie has been standing on tiptoe for the last two minutes, but she doesn t mind. She is determined to keep her eyes on horse number 4. Oh, and look, there s Miss France! A few rows further on, the appropriately named France is dodging her neighbour s flag as she checks her bets between races.

34 EPIQE SERIES Sunday June 19, 2016, Prix de Diane Longines It s Sunday, and it s the Prix de Diane Longines. The ladies have put on their finest hats. Sabine and her girlfriends, here for a bit of fun and fashion, don t know which way to look at the grandstand or at the racetrack?

35 66 FRANCE S LOVE OF HORSERACING EPIQE SERIES 67 REKINDLING FRANCE S LOVE OF HORSERACING Horseracing in France goes back more than 240 years that s a lot of passion and entertainment. It has transcended time and social class to write its own chapter in the history of sport and leisure. Today, horseracing is one of the finest examples of French savoir-faire, supporting more than 180,000 jobs, staging more than 18,000 races a year and exporting its image and influence beyond our borders with a success that rivals the luxury goods industry. And yet, in a context of fierce competition and economic downturns, French horseracing has suffered a decline in recent years as people look elsewhere for leisure and entertainment. Undeterred, the sector s key players are implementing an ambitious action plan to rekindle the French public s love affair with horseracing. AN AMBITIOUS COMMON STRATEGY TO WIN BACK HEARTS AND MINDS In 2015, the horseracing sector s five key players Le Trot, France Galop, Equidia, Fédération Nationale des Courses Hippiques and PMU established a working group with a clear road map: to equip horseracing with the means to win back the general public. At the time, the assessment was stark: only 7% of French people said they were interested in horseracing, compared with 44% for football. In order to secure the future of an entire sector of excellence, a major transformation was necessary to bring horseracing into a new dimension at once more modern and more in line with public expectations. To implement this road map, 11 separate steps were undertaken: segmentation of France s 236 racecourses; modernisation of the client racecourse experience; overhaul of horseracing s media strategy and modernisation of TV production; involvement of punters; adaptation of information to client profiles; identification of priority client segments; improved presentation of the racing schedule; digitalisation of the live experience; optimisation of marketing budgets and development of a common brand. Nothing was left to chance. While the scale of these initiatives reflects the size of the task, what emerged first and foremost was the coordinated effort of all the key players to help the horseracing sector to revitalise. The first concrete realisation of the strategy was in 2016 with the launch of the Epiqe brand and the Epiqe Series. EPIQE, BRINGING HORSERACING BACK INTO THE WORLD OF SPORT In May 2016, the sector s key players unveiled Epiqe, the first stage of their plan to enhance the clarity and appeal of horseracing. It is a strong identity, a promise of emotion, spectacle and sensation on an epic scale. The Epiqe brand was brought to life by a new horseracing championship the Epiqe Series. This distinctive signature expresses the entire sector s commitment to excellence and entertainment. Bringing together under one banner the 14 finest French flat, jump and trotting races, all with an international profile, this prestige championship is structured around iconic meetings in order to offer the public a clear, attractive and ordered proposition. The objective is for the Epiqe Series to become the horseracing equivalent of football s Champions League. Divided into two chapters one for flat and jump races up to the Qatar Prix de l Arc de Triomphe, one for trotting races culminating in the Prix d Amérique Opodo the Epiqe Series spotlights all the key figures through event features on TV and social media. Following the example of football, the horses and jockeys are profiled, their qualities and stats analysed, and the major competitions are dramatised to build excitement around the event, both on the racetrack and behind the scenes. A weekly series on TF1, the broadcast of Grand Prix on TF1 and LCI, behind-thescenes features on Instagram, challenges on Facebook and Twitter, specific racecourse graphics, a high standard of TV production these and other measures, put in place for each stage of the series, are worthy of major sporting events. The Epiqe Series races which are also supported by PMU s own commercial operations as it advertises the betting offer linked to the 14 key dates are reclaiming their identity so as to offer an exciting sporting spectacle while also spotlighting the people who make it possible. Adopting the codes of high-profile sporting events, the Epiqe Series is bringing horseracing into the 21 st century and utilising the potential of digital media to arouse the interest and secure the attention of an ever wider target. TAILORING THE OFFER TO THE EVENT PMU s role in promoting the Epiqe Series is to optimise its corresponding betting offer. For PMU, high-profile horseraces that generate emotion and enthusiasm are a guarantee of attracting more committed punters, being able to combine the excitement of the race with stimulating the betting experience, and also recruiting new or lapsed punters. By capitalising on the strength of the Epiqe brand, PMU creates a more attractive offer that arouses the interest of both experienced punters and new ones. PMU is promoting the 14 key dates with Super Jackpots of 10 million for the Quinté+. It has also launched the Défis Epiqe Series, which rewards the top 100 punters in terms of winnings ratio for each competition, and establishes an overall ranking for the entire championship. For the winner, there is a prize of 500,000 and a racecourse world tour. Completing the PMU package is the Duels Epiqe Series, based on a head-to-head competition between two star racehorses, with punters who backed the right horse entered into a prize draw. Last but not least, PMU s other activities are also contributing. Poker, for instance, has the Epiqe Series Freeroll, which hands out 2,500 worth of free horserace bets to the first 200 players on the Thursday before each of the 14 key race dates. In 2016, the Epiqe Series generated more than 600 million contacts via advertising campaigns, live broadcasts, short features and social media, representing a vast audience discovering or rediscovering horseracing in a new light. For PMU, the effects of this repositioning were evident immediately, with betting up by 7% on the trotting chapter of the Epiqe Series. Above and beyond the figures, however, the enthusiastic public response validates the excellence of the entire horseracing sector.

36 68 CAMILLE NEEDED SOME FRESH AIR! SHE JUST TESTED ROLLER BLASTER, THE VR ROLLER COASTER ON THE PMU STAND IT FELT MORE REAL THAN REAL LIFE! THE FINAL OF THE LEAGUE OF LEGENDS TOURNAMENT IS ABOUT TO BEGIN AND THERE S NO WAY SHE S MISSING THAT. NOT TO MENTION THE FACT THAT SHE JUST CAME ACROSS TWO COSPLAYERS HAVING FUN WITH THE PEPPER ROBOT THAT S NOT SOMETHING YOU SEE EVERY DAY! IF THERE S A BREAK IN THE ACTION, SHE LL HAVE ANOTHER GO ON THE HORSERACE SIMULATOR. LAST TIME, SHE WAS WITHIN A HAIR S BREADTH OF VICTORY, AND SHE S DETERMINED TO END WITH A WIN! THE FUTURE OF GAMING Saturday July 2, 04:32pm Parvis Paris-Expo 69 PMU was present at the first ever Viva Technology conference, held at the Porte de Versailles in Paris from June 30 to July 2, 2016, which welcomed more than 5,000 start-ups. An official partner of the event, PMU operated a 500m² space dedicated to Gaming, Sports and Entertainment around projects envisioning the future of gaming. The company launched six challenges to which a host of start-ups lined up to respond.

37 70 SHAPING THE FUTURE OF GAMING THE FUTURE OF GAMING 71 DRAWING ON A RANGE OF TALENTS What will we be betting on in five years time? Will we attend e-sport tournaments like we currently follow football s Ligue 1? Will we watch virtual reality horseraces from our living rooms? As a betting operator, PMU takes a keen interest in evolving gaming and lifestyle patterns, and extends its culture of innovation into the prospective field in order to make an active contribution to the gaming ecosystem of the future. Whether with PMU Lab, its own innovation hub, idbypmu, its in-house ideas catalyst, or Viva Technology, the European tech conference of which PMU is a partner, we are investing in the future in order to enrich the experience of punters starting today. IDBYPMU, OR INNOVATION AS THE FOUNDATION OF PMU CORPORATE CULTURE At PMU, the future is open to all: the idbypmu initiative was extended to the entire company in early It enables every employee, via the in-house social network NexusPMU, to suggest an idea ranging from something totally new to the improvement of an existing product or service, and to gather feedback from co-workers, who may enrich, support or challenge the idea. A transverse group of ten PMUppers supervises the initiative and screens the ideas depending upon their strategic interest, their innovative aspect or their ease of implementation. More than 200 ideas have been suggested, with approximately 20 being initiated. Some have already been launched: a PMU keyboard specially designed to take bets via text message; a winnings calculator; and a sound shower, which uses directional speakers to limit sound diffusion to a specific space, enabling someone standing at a PMU terminal, for instance, to hear the sound of Equidia without bothering anyone. TRY OUT, LINK UP: THE ROLE OF PMU LAB To set its culture of innovation in motion, PMU established in 2013 an in-house structure dedicated to experimentation and open innovation. With PMU Lab, the world of betting looks into the future to challenge emerging technologies and their integration into existing systems, or to question current practices and their potential for improvement. Client services were the first area addressed by PMU Lab, resulting in a wall of giant screens being installed at the Vincennes racecourse to multiply the information offered to punters, connected window displays in sales outlets to increase client interaction, and an application to link novice and experienced punters with the aim of pooling racing experiences. From the outset, PMU Lab served as an in-house innovation facilitator, in particular by connecting PMU teams with the relevant external suppliers. However, 2016 marked its entry and with it, the whole of PMU into the ecosystem of start-ups and open innovation. WITH VIVA TECHNOLOGY, A COLLABORATIVE APPROACH TO INNOVATION PMU partnered with Viva Technology, an event held for the first time in Paris in June Attracting more than 45,000 visitors, this conference devoted to technological innovation put some 6,000 international business leaders and investors in touch with 5,000 start-ups in attendance to present their vision of the future. The objective of PMU was to put forward its capacity for innovation and, especially to identify those startups and possible future partners with the potential to revolutionise the world of gaming. PMU s active involvement in Viva Technology resulted in sponsor a Lab focused on Gaming, Leisure and Entertainment. The company launched six themed challenges for which some 153 start-ups were shortlisted. Following an in-house selection process involving 70 employees, 50 start-ups were invited to present their ideas before a panel of judges at the conference. Six start-ups were chosen, one per theme, and were awarded 25,000 in financing to test their concepts alongside PMU teams. Trust Designer, responding to the challenge Payment solution and innovation, proposed a biometric identification solution via a fingerprint on a smartphone to guarantee secure transactions and access to special offers. Bear, addressing Let s play responsibly, developed augmented reality recognition technology in order to deliver prevention messages about gambling addiction. WeFan rose to the challenge Reinventing the game experience in the sports arena with its instant messaging system enabling fans to share their reactions in real time, while also placing bets and supporting their favourites. Glory 4 Gamers took part in the challenge Imagine tomorrow s games and scored a real hit with its e-sport platform automatically connecting online gamers via a sponsorship system involving players with an identical profile. Weblib had to Imagine tomorrow s point of sale and suggested a smart Wi-Fi solution offering clients in sales outlets and at racecourses a free connection while collecting data and delivering targeted offers. Finally, Intellicore won the challenge Sports, data for new services with its solution for transforming sports data in real time into actionable insights for fans and professionals. Since September 2016, these start-ups have been hard at work on their Proof of Concept (POC), in other words translating the original idea into a prototype. They are each supported by a PMU project carrier who puts his/ her expertise at their disposal. If the POCs are conclusive, the solutions will be tested in real-life conditions in 2017, then rolled-out more widely, or merged into other initiatives depending on the results of the experimentation phase. PMU s first foray into the ecosystem of start-ups has enabled the company to share and extend its culture of innovation beyond its internal culture. By opening up such playgrounds, PMU is encouraging new ideas, challenging its own assumptions and injecting into the thought processes a dynamism essential to imagine the future of gaming. It is this ambitious, open-minded ethos which makes PMU today an innovative, international business constantly reinventing the experience it offers to punters.

38 72 T H E E S S E N T I A L S 73

39 74 C H A I R M A N S M E S S A G E B O O S T E D BY S U C C E S S, P M U M U S T M O V E F A S T E R T O G U A R A N T E E GROWTH In 2016, PMU demonstrated its resilience. In a socio-economic climate that has been difficult for a number of years, we have fully exploited our growth drivers and reactivated our capacity to innovate. The PMU 2020 strategy has been a success in more ways than one: our international betting activity broke the 1 billion barrier this year; the digitalisation of our sales outlets has injected new momentum into the network; our entry into the ecosystem of innovation via the Viva Technology conference has borne fruit; and the smooth execution of Easy, the project to transform our information system, proved to the entire sector and beyond that we were capable of completing complex and ambitious programmes. However, to restore growth on a lasting basis, we need to go further and faster. It is to this end that PMU launched a strategic acceleration centred on our core business. With PMU , we are entering the advanced phase of our strategic plan, capitalising on our successes and concentrating our efforts on three key areas: horserace betting, international development and online sports betting. In line with the plans we have already implemented, this acceleration will focus on innovation in terms of products and services, and on the ongoing transformation of our network of sales outlets. We bet on a strategy that put the punter back at the heart of our business and we were right. The positive results of our 2016 launches, the Boost Ordre and Report+, have confirmed the dynamism of our offer and its ability to appeal to both seasoned racing followers and novice punters. We will continue in this direction by offering two new products and services every year. Clearly, the modernisation of our network and client experience remains a priority, and we have successfully risen to the challenge of introducing digital technology without losing our friendly ambiance. The new concepts are a key pillar of our growth strategy and appeal to outlet managers with their clearly differentiated approach. Internationally, we will prioritise the development of our B2B partnerships and the consolidation of our B2C positions. We have turned pari mutuel betting and horseracing into a quality product and the raison d être for our impressive export performance. This success represents recognition for the work of the entire French horseracing sector, which is acknowledged and admired far beyond our borders. PMU is proud of our place among the very select group of purely French products that contribute to enhancing the international image of our country and our savoir-faire. Naturally, the 1 billion in bets is a landmark achievement, but there are many other international successes to report, such as Norway s passion for flat races, the entry of our Brazilian subsidiary into a common pool with French punters, and the 37 million staked by punters in Japan on the Qatar Prix de l Arc de Triomphe. French horseracing is exciting and entertaining, and our offer speaks to punters the world over. Looking ahead, PMU will continue to explore new markets in Africa, Asia and Europe. EURO 2016 gave PMU the opportunity to demonstrate that, in order to succeed in sports betting, it is not enough to have the best odds. In a fiercely competitive market, we banked on emotion and proximity to punters. Our Bars des Bleus were the place to be all through EURO 2016, and our partnership with the French national team put us at the heart of the tournament s best moments. True to our strategy of bringing our activities closer together, we successfully avoided a decline in horserace betting by linking the two, thus ensuring that our EURO 2016 success benefitted the whole business. Well established in the world of sport through our partnerships and our advertising campaigns, PMU is now on a par with purely digital players. Indeed, we are the third largest e-commerce site in France. Going forward, we must continue our efforts and mobilise our capacity for innovation in order to offer our punters new products and services, and to accompany them in their passion. We have forged a unique relationship with our punters. This is not new: PMU is an element of social cohesion. More than an entertainment product, it is a marker that is part of the landscape and the culture of our country. Since 2010 and the extension of our activities, we have successfully reproduced this cohesion online by creating a community of enthusiastic players. The special relationship we have with our punters is of fundamental importance, which is why I am particularly proud that PMU have been voted the Client Service of the Year award for This honour recognises the day-to-day efforts of our teams and our capacity to look after punters via every communication channel. Understanding and assisting our clients is key to our business. Last but not least, I want to pay tribute to the work and commitment of the horse racing institutions, which this year culminated in the launch of Epiqe, a strong brand and a revamped schedule spotlighting the year s top 14 races and utilising innovative formats to put horseracing back among the most popular forms of sporting entertainment. If there is no racing, there is no PMU. At a time when attention spans are being reduced and competition from other sports is fierce, it is essential we give ourselves the means to market to a wide audience the truly exceptional spectacle of major horseraces. The ingenious idea of Epiqe is to highlight all the racing world s key figures all the people who make those few minutes of raw emotion possible. It is a reward for an entire sector, an important contributor to France s economy and agriculture, of which we can be proud. It is a vision of a singular and spirited industry, which starts in the fields and ends on our TV screens. It is an advertisement for a timeless expertise, which is now being exported with success. We have a role to play in this future and we should play it with pride and confidence. Xavier Hürstel Chairman and CEO CHAIRMAN S MESSAGE 75

40 H O R S E R A C E B E T T I N G S P O R T S B E T T I N G P O K E R DRIVEN BY I N N O V A T I O N AND INTERNATIONAL BUSINESS PMU PICKS UP POINTS P L A Y S I T S CARDS RIGHT ACTIVITIES In a tricky social and economic environment, horserace betting is proving remarkably resilient. Boosted by a buoyant international market and product innovation, it is offsetting the negative effects of the separation of betting pools imposed by the Competition Authority and benefitting from an action plan designed to restore growth. Boosted by a successful EURO 2016, the sports betting activity recorded an excellent performance in 2016, with an array of new offers for punters to maintaining PMU s market share in a highly competitive environment. With local partnerships in football and rugby, and an extension of the basketball offer, PMU is continuing to carve out its niche in the world of sport, while building multiple bridges with its horseracing activity. In a stabilised online poker market, PMU successfully maintained a high level of performance thanks to ongoing efforts to boost its offer. The development of new products and services, combined with the appeal of flagship events, enabled PMU to once again secure its third place in a very competitive sector A record year internationally 01 A good year boosted by success at EURO PMU doubles its efforts The total value of horserace betting was billion, down by 1.1% compared with A 4% decline in France was partially offset by excellent results internationally, with the value of bets exceeding 1 billion for the first time, an increase of 29%. Gross gaming revenue was up by 1.2%, ending the year at billion. For the first full year of separate betting pools, online horserace betting was badly hit, with the negative impact of this situation estimated at 120 million. PMU responded by stepping up its efforts to increase the attractiveness of both our online and offline offer. Internationally, new common pool partnerships with Hungary, Greece and Brazil, as well as the success of recent partnerships like Norway, are boosting PMU and consolidating its leadership position in Europe. 02 An offer energised by innovation PMU has used product innovation to enhance its capacity to withstand difficult conditions and recruit new clients. In 2016 two new product launches had a positive effect on business: the Quinté+ Boost Ordre energised PMU s flagship bet, while the Report+, thanks to its added entertainment value, generated a 34% increase in stakes following its introduction in October. Launched in September 2016, PMU s text betting service, which enables punters with an account to place their bets on the offline pool via mobile phone, has helped to compensate for the restricted opening hours of sales outlets and is already achieving very positive results ( 18.5 million in bets in its first quarter). Meanwhile, the new receipt scan feature has contributed to the growing popularity of the My PMU application, with the number of unique visitors tripling between January and December. Finally, the relaunch of the My PMU loyalty programme saw the value of loyalty card holder bets increase two-fold over the year to exceed 200 million, with average stakes per active client up by almost 30%. The number of card holders also recorded a strong increase, up by 50% to more than 220,000 clients at year-end In the network, the modernisation programme continues apace with 3,600 outlets transformed during the course of the year. At year-end 2016, more than half of PMU s 13,200 outlets had been renovated. Five new PMU City venues took the total of such wholly owned outlets up to sales outlets renovated every day in BN+ bets internationally in 2016 # 1 Pari mutuel operator in Europe M bets via the MyPMU card In the face of fierce competition during a year rich in sporting competitions, PMU succeeded in increasing total stakes by 19.7% to 283 million. These excellent results were boosted by the 22 million of bets placed during EURO 2016, and notably the record sum of 2.1 million for the final, which enabled PMU to add 1.5 points to its market share during the tournament. Rather than launching into a war of odds, PMU chose to maintain a stable offer throughout the year in order to ensure business held up before and after EURO Gross gaming revenue was up by 1.9%, ending the year at 44 million was the year when the desktop/mobile balance tipped in favour of the latter, with 55% of sports betting coming from mobile devices. To capitalise on this phenomenon, PMU overhauled its websites, mobile apps and ipad application to promote cross-platform usage. However, desktop was by no means neglected, benefitting from a complete redesign, a new range of bets, the addition of the new Bet Machine and multi-bonus grids. 02 Keeping a high profile While the year was dominated by promotional activity around EURO 2016 (The Footballers campaign, the visit of the French national team to the Vincennes racecourse, the Bars des Bleus amongst others), the sports betting offer was enriched above and beyond football. PMU now offers the American NCAA college basketball tournament, and has extended its handicap betting offer to all US competitions. Currently representing 7% of sports betting, basketball is on the rise, bringing together a dynamic and ever wider community of supporters. Prior to EURO 2016 and its high-profile The Footballers ad featuring French national team players as superheroes, PMU scored a hit in the first quarter of the year with its PMU is also sports betting campaign. Paris Saint-Germain players were featured publicising the fact that PMU offers bets not only on football, but also on tennis, rugby and basketball. In order to capitalise on the rise of basketball, PMU joined forces with two YouTubers, Thomas Dufant and Erwan Abautret, to create a short, twice-weekly video programme, The Big Ticket, which offers expert tips to PMU punters. The active involvement of sports punters is an essential element of PMU s success in this sector. With more than 200,000 followers on Facebook, as well as a very lively community, PMU is aiming to extend its client base via an offer that is dynamic, in line with new usage trends and regularly renewed % increase in bets for the year 22M+ bets during EURO 2016 # 3 operator in France 200,000+ Facebook followers on PMU Paris Sportifs At year end, PMU Poker could look back on a positive performance, with gross gaming revenue of 15.4 million, an increase of 4.9%, in a slightly declining market (-1%). To attract new players and sustain the active interest of its clients, PMU Poker launched Sit n Go Jackpot with prize money of up to 100,000 for a 20 stake. Meanwhile, the French Poker Championship tournaments exceeded 1 million in guaranteed prize money for the end-of-year VI edition, representing a doubling of the guaranteed amount over the previous 18 months. 02 Sustained success for PMU Poker events In terms of innovation, PMU Poker updated its ios and Android applications to integrate multi-tabling and stepped up its presence on social networks, notably with its new Twitch channel. The Team Pro also welcomed new faces with Sarah Herzali and Yoh_viral, as well as Pierre Merlin, the winner of the Pro Dream operation, which enabled a PMU.fr player to join the Team with a 50,000 contract. They linked up with the Team s star player, Erwann Pecheux, to promote the PMU.fr brand on the live circuit and to animate online tables in the room. Live was naturally a key focus of activity once again in 2016: PMU Poker renewed its sponsorship of three WPT events (Cannes, Marrakech and Deauville) for a further two years and announced the launch of its own circuit, the France Poker Open. This circuit, which will feature five stages in 2017, offers accessible buy-ins with a main event at 600, and the opportunity to qualify throughout the year on PMU.fr. Finally, the Hip Poker Tour once again proved a great success in 2016, in particular at Vincennes. This racecourse-based freeroll poker tournament attracted more than 150 players at every stage and combined two very different worlds into a unique and highly popular series of events % increase in gross gaming revenue for the year $ 5 5 5, total winnings of PMU Poker Team Pro # 3 online poker operator in France 1,222,194 total endowment on FPC VI (for 1m guaranteed) 76

41 C O M P A N Y T H E Y E A R S K E Y FIGURES In 2016, PMU s activity held up particularly well throughout a year characterised by very difficult conditions overall. In France, the network felt the effects of the precarious socio-economic climate, while online horserace betting suffered from the separation of pools in late PMU reacted by implementing measures to counteract the decline in horserace betting in France and to capitalise on its successes overseas. The company took decisive action to restore robust growth by investing massively in the transformation of its network of sales outlets, in innovation, digital technology and the development of client services M Total stakes in 2016, including horserace betting, sports betting and poker BN P M U GOVERNANCE PMU is an Economic Interest Group (EIG) comprising 60 French racing associations gathered together in a General Meeting. Its mission is to support and finance the development of the French horseracing sector. PMU is run by a Board of Directors and supervised by state authorities. EIG PMU is an EIG comprising 60 non-profit racing associations. Amongst these, two parent companies regulate and fund races, each in its own discipline: France Galop for flat and jump races, and LeTrot-SECF for trotting races. General Meeting Twice a year, the General Meeting brings together the representatives of the 60 racing associations which are members of the EIG. It approves the accounts and decides on the planning budget. Every four years, it appoints the Chairman and CEO of PMU and, on the latter s recommendation, the Deputy General Manager. Both appointments must then be approved by the two supervising ministries. Supervisory bodies PMU comes under the joint authority of two French government ministries: the Ministry of Agriculture, Food and Forests, and the State Secretariat for the Budget and Public Accounts. In addition, the opening of any new sales outlet must be approved by the Ministry of the Interior. A mission: to finance the French horseracing sector Since 1930, PMU has marketed bets on horseraces. In 2010, it extended its offer to sports betting and online poker tables. PMU also exports its horserace betting offer internationally, both in common pool (marketing of bets) and separate pool (sale of images and information). PMU net profit from all activities is paid in full to the 60 racing associations which are members of the EIG, thus providing 80% of the income of the French horseracing sector. The racing associations finance the upkeep and modernisation of the 236 French racecourses, the training and breeding centres, distribute prize money and organise the races, more than 18,000 of which are open to PMU betting every year. The racing associations also contribute to the continuation of over a hundred s p e c i a l i s e d t ra d e s, re p re s e nt i n g 180,000 jobs: jockeys, stable staff, grooms, farriers, riding instructors, veterinarians, and saddlers amongst others. Dynamic, resilient and well-structured, the French horseracing sector is healthy. Respected in all nations with a horseracing tradition, French racing represents a model and a savoir-faire which are now being exported around the world. KEY FIGURES AND GOVERNANCE 79 Gross gaming revenue on the rise 78 Record year for the International development Total PMU betting activity reached billion in 2016, down 0.6%. Total gross gaming revenue rose by 1.3% to billion. These results, combined with strict management and cost control, enabled PMU to deliver a net profit of 796 million to the French horseracing sector, close to its budget commitment. IN MILLION EUROS Change Stakes 9,738 9, % Return to punters -7,294-7, % Gross gaming revenue 2,444 2, % Gross margin before taxes 2,260 2, % Operating expenses % Operating profit 1,656 1, % Net profit before taxes 1,653 1, % Taxes % Net profit % BN Winnings paid out to punters by PMU in M Net profit in 2016, paid in full to the racing associations that are members of the EIG M Bets placed internationally, an increase of 29% BN Total bets on horseracing in 2016 Board of Directors The PMU Board of Directors comprises the Chairman and CEO, the Deputy General Manager, four representatives of the State and four representatives of the EIG member associations. Its role is to deliberate on all decisions relating to the company s key strategic, economic, financial, commercial and technological directions. Its 10 members are elected by the General Meeting. Xavier Hürstel Chairman and CEO of PMU Alain Resplandy-Bernard Deputy General Manager of PMU Édouard de Rothschild President of France Galop Dominique de Bellaigue President of LeTrot-SECF Hubert Tassin Member of the France Galop Committee Joël Séché Member of the Board of Directors of LeTrot-SECF Also in attendance: Florent Guhl Government Commissioner to PMU, Ministry of Agriculture, Food and Forests Véronique Borzeix Deputy Director of Woods- Forests, Equine Affairs and the Bioeconomy, Ministry of Agriculture, Food and Forests Christian Vanier Executive Director, Institut Français du Cheval et de l Équitation Sophie Mantel Department Head, Budget Directorate, Ministry of the Economy and Finance Henri Havard General Inspector of Finances Sylviane Miroux State Controller, Ministry of the Economy and Finance

42 MANAGEMENT COMMITTEE M A N A G E M E N T C O M M I T T E E 1. Jean-François Bertrand TV Centre Director 2. Benoît Cornu Director of Communication 3. Bruno Frankiel Director of Human Resources 4. Xavier Hürstel Chairman-CEO 5. Christophe Leray Director of Operations and Information Systems 6. Samuel Loiseau Director of Marketing and Clients 7. Florence de Noray Director of Finance 8. Michel Oddos Director of Commercial Networks 9. Pierre Pagès General Secretary 10. Alain Resplandy-Bernard Deputy General Manager 11. Aymeric Verlet International Director

43 H U M A N R E S O U R C E S C S R ACCOMPANYING THE T R A N S F O R M A T I O N OF PMU G E T T I N G E V E R Y O N E INVOLVED HR AND CSR 82 The challenge: to accompany the evolution of thebusiness. Within the context of the PMU 2020 strategic plan, specific programmes aim to transform PMU corporate culture and take the company forward towards greater cooperation, innovation and agility. Developing skills In 2016, Human Resources launched the Management Lab management development programme designed to accompany managers in the acquisition of new skills. By 2020, no less than eight skills identified as essential in terms of PMU s strategy will be the object of training modules and a certified programme: delegating; innovating; giving meaning; decision-making; creating the conditions for collective success; piloting operations; acknowledging the contributions of co-workers; and mobilising teams. These eight key skills will enable PMU s approximately 300 managers to develop their potential while playing a decisive role in the transformation of the company. Beyond the managerial community, all PMU employees are engaged in a drive for transformation through innovation. The Innov Action training programme is dedicated to the acquisition of the skills necessary to create a shared culture of innovation within PMU. Two half-day sessions were organised in autumn 2016 to familiarise employees with the attitudes and techniques that unleash creativity and individual initiative. Furthermore, innovation is an objective given to all employees, and as such features in annual performance reviews. More generally, PMU is continuously assessing skills and performance to ensure that the company s professional profiles match its business objectives. The survey recorded a very high level of commitment at 80%. PMU employees have a sense of responsibility and investment in the objectives of the business. The results gave rise to an overall report and a plan of action implemented by every department. Modernising tools To encourage cross-functional collaboration, simplify processes and promote innovation, PMU rolled out its in-house social network, NexusPMU, to all personnel in early There are more than 1,270 members among the 1,350 employees, and some 90 communities discussing projects, skills, business or other subjects. At the heart of the platform, idbypmu hosts the company s open innovation initiative, welcoming and challenging ideas suggested by employees. Human Resources has also initiated the modernisation and digitalisation of its suite of services (recruitment, mobility, performance, training) via an HRIS (Human Resource Information System) which helps to streamline processes, offers improved visibility and facilitates employees everyday experiences and the development of an e-learning offer. PMU is a committed business committed to helping punters avoid risky behaviours; committed, alongside its employees, to supporting associations working for good causes. Responsible gaming: everybody s business Since 2013, in the context of PMU s Let s play responsibly initiative, the company has maintained an ongoing advertising campaign focusing on a different theme each year. In 2013, the subject was the prohibition of credit betting, in 2014 the prohibition of underage betting, in 2015 the dangers of mixing alcohol and gaming, and in 2016 the risks of impulsive and excessive gambling. Each annual campaign is accompanied by a series of measures designed to raise awareness, including client brochures in sales outlets, banners on terminals and applications, and e-learning modules for outlet managers. Essential partners of PMU in encouraging responsible gaming, managers are contractually obliged to conform to stringent rules in order to provide a healthy gaming environment for punters. To further advance its strategy, PMU established a Let s play responsibly challenge for start-ups at the Viva Technology 2016 conference. BEAR, a start-up based in Montpellier, was chosen to develop an augmented reality concept designed to facilitate use of responsible gaming web tools in sales outlets. In 2017, this new content will enhance PMU s existing awareness-raising measures, making them even more accessible. Solidarity: so many ways to help! Throughout France, PMU employees have the opportunity to contribute to society in three different ways. Employees may donate their time and expertise to an association in order to help it bring a project to fruition. Pro Bono Lab, PMU s partner in this initiative, offers and organises two formats: a Pro Bono one-day marathon, or a Pro Bono consultancy session during the lunch break. PMU also offers employees who have already committed to an association the opportunity to present its project to an in-house panel chaired by Xavier Hürstel in order to obtain financial backing. In-2016, four projects benefitted from this initiative: Parentraide Cancer, which offers socio-aesthetic workshops to parents of children suffering from cancer; GIPS 95, which is developing parasailing for people with a disability; Les Amis de la Chouette Coop, a food cooperative for people in-difficulty; and OMSG, which organises an annual social and sporting festival in Gannat, Auvergne. Last but not least, PMU encourages its employees to support a young person through studying and job-seeking via two associations: Sport dans la Ville, which aims to promote the integration of young people from deprived areas via sport; and Frateli, which provides professional mentoring for high-potential scholarship students. Employee commitment under the microscope PMU & Vous, the company s first employee commitment survey, was offered to all teams in early Detailing 65 criteria under 12 themes, it produced nearly 1,300 personal statements and a clear appraisal of employees relationship with their company. Two awards for PMU client service In addition to being named Client Service of the Year, in 2016 PMU client service also obtained the AFNOR Social Responsibility Label. This certification, specific to call centres, evaluates socially responsible practices across the working environment of employees: human resources management, social dialogue, well-being in the workplace, commercial practices, and environmental responsibility. It represents both internal and external recognition for the efforts of PMU s client service department in continuously improving the working conditions of its operators. 83

44 C A R T E B L A N C H E C U L T U R A L PATRONAGE CARTE BLANCHE Building on its seven-year experience in cultural patronage, PMU is focusing more attention on supporting and encouraging contemporary photography. Carte Blanche PMU Uniquely, PMU does not reward existing work but, has given carte blanche to an art photographer to interpret the world of gaming in his or her own way. Every year since 2010, PMU thus supports an artist who, in return, produces a vision of gaming that is often unexpected and always highly contemporary. With 20,000 funding to execute the artist s original project, an exhibition at the Pompidou Centre s Photography Gallery and the publication of a book by Éditions Filigrane, Carte Blanche PMU brings the world of PMU into the artistic domain and reveals new perspectives. In 2016, the judges were won over by the project of Barcelona-based artist Anna Malagrida, whose creative process brought her into direct contact with punters. The Carte Blanche PMU 2016 judging panel: 85 Paula Aisemberg Director of La Maison Rouge Clément Chéroux Curator at the Musée National d Art Moderne Centre de Création Industrielle du Centre Pompidou Head of Photography Diane Dufour Director of Le BAL Nicolas Ferrand collector, founder of Le Quotidien de l Art Valérie Jouve photographer Kourtney Roy photographer, winner of Carte Blanche PMU 2013 Sam Stourdzé Director of Les Rencontres d Arles Karolina Ziebinska- Lewandowska Curator at the Centre Pompidou Photography Benoît Cornu Director of Communication of PMU, Chair of the judging panel Partner of the Pompidou Centre: Founding partner of Le BAL: 84 Not only does the support of PMU enable the Pompidou Centre to display its photography collection, which is one of the largest in Europe. But the partnership significantly raises the PMU s own profile, since three million people visit the museum every year. In this context, the benefits of the PMU s patronage of photography are clear: its support enables an up-and-coming photographer to execute a project in relation to gaming and subsequently to gain greater recognition for his or her work. Through its partnership with the Pompidou Centre, PMU offers its employees open access to art, and also brings its activities to the attention of a much wider audience (more than 8,000 people visited the Carte Blanche PMU 2016 exhibition). Le BAL is an independent platform for exhibition, publishing, reflection and education devoted to the contemporary image in all its forms: photography, video, film, new media. Established in 2010 by Raymond Depardon and Diane Dufour with the support of the City of Paris, Le BAL is a not-for-profit association. New angles on photography : More generally in 2016, photography initiatives were in greater evidence around the company. A partnership with Polka magazine was made to mark the 100th anniversary of the Coupe de France de Football in In addition to photo reports, travelling exhibitions relate in images the human adventure of the Petits Poucets PMU (amateur teams sponsored by PMU). Another way to bring the world of PMU to the attention of a new and diverse audience. Anna Malagrida Entre urbain et humain

45 86 O F F I C I A L P M U R E G U L A T O R Y FRAMEWORK Regulation is inherent in the activity of PMU. To ensure the business is well run, from the point of view of both the regulatory authorities and its clients, PMU like all gaming operators is subjected to a certain number of rules. For PMU, respect of this regulatory framework has always been fundamental, and the company has built a solid reputation as a trustworthy operator both in France and internationally. Supervision and control: PMU activity in the spotlight Within the PMU regulatory framework, there are two types of authority: supervision and control. Supervision is the most extensive form of regulation. For PMU, it is the joint responsibility of the Ministry of Agriculture, Food and Forests, and the State Secretariat for the Budget. Both these agencies are represented by four members with voting rights on the PMU Board of Directors. Control relates to specific aspects of PMU s activity and can therefore take different forms. The Ministry of the Interior, for example, is responsible for authorising sales outlets, via its central service of racing and gaming (SCCJ). The Ministry of the Economy and Finance, via the general inspection of finances and State control, oversees the financial management of PMU and the most important contracts. In matters of combating fraud and money laundering, both the Ministry of the Economy (TRACFIN) and the Ministry of the Interior (SCCJ) play a central role. PMU is also controlled by independent administrative authorities. ARJEL (Autorité de Régulation des Jeux En Ligne), established in 2010 with the opening of the online market, is responsible for regulating online gaming operators. It delivers accreditations to online operators for each of their activities (horserace betting, sports betting, poker). These accreditations must be renewed every five years and are the object of an annual audit for the purpose of operator certification. Before it delivers a certification, ARJEL undertakes stringent checks on legal, economic and technical aspects. It is also responsible for approving Combating fraud and money laundering The regulatory framework in this regard largely derives from European Union directives. The order of December 1, 2016 transposed the fourth directive on money laundering and financing of terrorism. For PMU, conformity with the implementation of these obligations has been monitored since 2005 by SCCJ for offline activity, and since 2010 by ARJEL for online activity. In order to fulfil its obligations, PMU has developed a system of surveillance enabling it to identify suspicious gaming software, which must follow a specific procedure before it can be integrated into PMU systems. Each activity has its own specificities: for sports bets, there is an approved list which the authority updates every month according to the competitions taking place and the requests of operators; for poker, the types of games permitted are subject to a decree from the Ministry of the Budget; for horserace betting, the racing associations decide on the schedule that will be open to betting, which is then published by ministerial decree. Other independent administrative authorities play a role in the regulation of PMU activities: the competition authority (ADLC), which scrutinises the business in the light of competition law and has the power to act in the event of a breach; CSA, which monitors advertising and Equidia broadcasts; CNIL, which verifies that rules regarding players personal data are respected; DGCCRF, which rules on deceptive or abusive commercial practices; and COJEX, which advises the supervising ministries on PMU s business plan and its measures to encourage responsible gaming and to combat fraud and money laundering. This robust regulatory framework ensures the security of customers and their transactions. Collaboration between the authorities and PMU is essential, because it enables practices to be taken forward in a concerted way, with PMU contributing its expertise of the gaming market and the authorities ensuring proper oversight of a potentially sensitive activity. Moreover, PMU s commitment to issues of responsible gaming and combating fraud and money laundering goes further than the requirements imposed upon it. behaviours and thus prevent gaming and betting from being used for purposes of money laundering. Whenever there is a suspicion of money laundering, PMU is obliged to pass on information to TRACFIN, which decides whether or not to continue the investigation. PMU makes all its employees and partners aware of the risks of money laundering inherent in the gaming sector, and all are actively involved in the system of vigilance it has implemented. R A C I N G A S S O C I A T I O N S EIG MEMBER A S S O C I A T I O N S A N D T H E I R PRESIDENTS The 60 non-profit racing associations which are members of the Economic Interest Group are responsible for organizing and supervising all the activities of the French horseracing sector. Together, they constitute the PMU General Meeting, which approves the company s accounts and financial strategy. France Galop Édouard de Rothschild Société LeTrot-SECF Dominique de Bellaigue Société des courses de la Côte d Azur François Forcioli-Conti Société des courses du Pays d Auge François Grandcollot Société des courses de Compiègne Antoine Gilibert Société des courses de Dieppe Laurent Beuvin Société des courses de Fontainebleau Frédéric Landon Société sportive des courses de l Agenais Jean-Philippe Semeillon Société des courses d Amiens Philippe Levasseur Société des courses d Angers François Saint-André Société des courses du Pays d Argentan Jacques Frappat Société des courses de Beaumont-de-Lomagne Gérard Cazeneuve Société d Encouragement de Bordeaux Jean-Michel Descamps Société des courses hippiques de Chartres Jean-Luc Thirouin Société des courses de Châteaubriant Alain Hunault Société des courses de chevaux de Cherbourg André Fouquet Société des courses de Cordemais Gérard Fréneau Société des courses de Craon-Mayenne Hugues Crosnier Société des courses de Graignes et du canton de Saint-Jean-de-Daye Jean Duprey Société hippique du Var Yvan Jonio Société des courses de La Capelle Jean-Luc Egret Société des courses de La Testede-Buch Jean-Marie Plassan Société des courses de Laval Mayenne Jacques Moreau Société des courses du Croisé-Laroche Bernard Delva Société des courses du Lion d Angers Alain Peltier Société des courses du Mont-Saint- Michel Pontorson Alphonse Ledédenté Société des courses des Sables-d Olonne Yannick Meunier Société des courses de Lisieux Jacques Hodiesne Société des courses lyonnaises Jean-Claude Ravier Société hippique de Marseille Patrice Camacho Société des courses de Maurede-Bretagne Jean-Jacques Barre Société des courses du Meslaydu-Maine Jean-Baptiste Bossuet Société des courses de Nancy-Brabois Jacques Montoya Société des courses de Nantes Jean-Pierre Vallée-Lambert Société des courses de Pont-Château Francis Gascoin Société des courses de Reims Gilles Jéziorski Société des courses hippiques de Mauquenchy-Pays de Bray Jean Fournier Société hippique de St-Galmier St-Étienne Claude Bayard Société des courses de Saint-Malo Gilles Caroff Société des courses de Strasbourg Lucien Matzinger Société sportive des courses de Toulouse Francis Montauban Société des courses de Vire Yannick Pierre Société des courses de Salonde-Provence Yves Jacquin Société des courses de Saint-Brieuc Gabriel Villesalmon Société des courses de Vichy Philippe Bouchara Société d Encouragement des Pyrénées- Atlantiques Jean-Louis Foursans-Bourdette Société des courses du Mans Christian Bazire Société hippique de Cavaillon Gérard Nougier Société hippique de la Loire-Feurs Gérard Vacher Société des courses de Moulins Roger Winkel Société des courses d Aix-les-Bains Jean-Louis Valérien-Perrin Société des courses hippiques de Cholet Patrice Percherel Société des courses de chevaux de Dax Jean-Louis Gayan-Sourgen Société des courses de Mont-de-Marsan Jean-Yves Bénard Société des courses de la Côte d Amour Jean-Paul Rolland Société des courses hippiques de Rambouillet Bernard Marie Société des courses de Tarbes Laloubère Patrick Lapique Société des courses de Divonne-les-Bains Gilles Bernard Société des courses de Châtelaillon La Rochelle Bertrand Rivière Société des courses de Langon Libourne Franck Marquette REGULATORY FRAMEWORK AND EIG MEMBER ASSOCIATIONS 87

46 PMU - COMMUNICATION DEPARTMENT 2, rue du Professeur Florian Delbarre Paris Cedex 15 - France com.presse@pmu.fr DESIGN - PRODUCTION CONTRIBUTORS Arnaud Pauchenne Antoine Blachez IN USING COCOON SILK AND COCOON OFFSET RATHER THAN NON RECYCLED PAPER, THE ENVIRONMENTAL IMPACT OF THIS ACTIVITY REPORT IS REDUCED BY: 1,668 KG of materials sent to landfills 244 KG of CO 2 PHOTO CREDITS Matthieu Alexandre / AFP Photo Blaise Arnold Alan Crowhurst / Getty Images Outside North America Images Frances Berry Giampaolo Gimercati Gail Albert Hallaban Franck Juery Jag Images / Cultura Creative Vuthéara Khan Yann Lacombe Daniel Leal-Olivas / AFP Photo Anna Malagrida Malik Nejmi Richard Pak Marion Péhée Eric Pickersgill Yener Torum 2,241 KM travelled in an average European car 63,076 L of water 3,544 KWH in power supply 2,711 KG of wood

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