PMU wrote its new rules of the game.

Transcription

1 J O U O N S! J U G U E M O S! π ά μ ε σ τ ο ί χ η μ α L A T E N W E S P E L E N! P E L A T A A N! L A O S S S P I L L E! J O G U E M O S! S P I E L E N W I R! ACTIVITY REPORT 2015

2 PMU wrote its new rules of the game. Discover how PMU has progressed and evolved in 2015 After reading about the rules of the game here Let s play and live the 2015 PMU experience here : rapportactivite2015.pmu.fr

3 2015 was a landmark year for the implementation of the PMU strategic plan. From the modernization of our sales outlets to the reinvention of our day-to-day relationship with punters, through the acceleration of our international development and the affirmation of our fast-thinking culture This year, we rewrote the rules of the game and put them into practice. We laid the foundation for a new PMU, a PMU that will surprise you, over and over again. You can read about it in the following pages. At the heart of our transformation, and our capacity for innovation, is digital media. Naturally, inevitably, this year, we want to tell you in detail about what we re doing digitally. Beyond that, to demonstrate the advances we made in 2015, PMU invites you to join us in an original and ambitious game experience on rapportactivite2015.pmu.fr After all, it is the experience that matters more than ever and it is our aim to make it more intense, more innovative and more unifying. Happy reading!

4 04 RULE #1 / GALLOP FURTHER AND FURTHER 10 RULE #2 / BE CAPABLE OF REINVENTION 16 RULE #3 / KEEP THE PASSION ALIVE 22 MAP 22 HORSERACE BETTING 29 SPORTS BETTING 30 POKER IN FIGURES 32 MANAGEMENT TEAM 34 GOVERNANCE 36 RESPONSIBLE GAMING 38 CARTE BLANCHE PMU 39 EIG COMPANIES

5

6 THE ESSENTIALS

7 PMU - ACTIVITY REPORT / 3 G A L L O P R U L E F U R T H E R N U M B E R A N D 0 1 F U R T H E R

8 THE ESSENTIALS Or how we are exporting our knowhow beyond our borders. In 2015, international sales represented 9% of PMU business, a share that is constantly growing. How do you explain this success? XAVIER HÜRSTEL (Chairman and CEO)_ A few years ago, nobody was expecting us to expand internationally. However, when we drew up the PMU 2020 strategic plan, we identified international markets as one of our key growth drivers and we were right. AYMERIC VERLET (Head of International Development) _There are two fundamental factors behind our successful expansion: our knowhow in betting and the structuring of the sector, and the quality of French horseracing. It is the combination of the two that enables us to be the number one pari-mutuel operator in Europe, the number three worldwide, and one of the fastest growing operators outside its home market.

9 PMU - ACTIVITY REPORT / 5 With +11% growth in bets placed last year, what factors give PMU a competitive edge in export markets? AV_ Our development encompasses both common pool and separate pool betting. For separate pool in other words, when winnings are calculated exclusively on the basis of the stakes collected in one country we sell live race images and data to 29 countries. In this context, it is primarily the quality of the events and our information that makes the difference. In common pool betting when winnings are calculated on the total stakes collected in all the different countries and merged into PMU pools in France we sell, in addition to images and data, the PMU betting offer. This enables us to enhance the appeal of our races with the quality of our complete betting package, and above all to offer betting opportunities that are generally much more attractive given the size of our pools in France. We also strive to reciprocate wherever possible, importing more than 3,600 races from partners in 26 different countries. XH_ On the global mutuel betting market, the quality of your races and the size of your pool are essential to export success. In this context, we have a key advantage in that our common pool is among the best in the world, in spite of fierce competition from other major racing nations. We are gaining an edge over our rivals thanks to the quality of our programmes and the attractiveness of our betting offer, which appeals to a wide customer demographic. Internationally, our races enjoy a very high reputation for quality. As with champagne, French excellence is a key export driver in our sector. How do you export the knowhow of PMU and its betting offer? AV_ We have two strategies. Firstly, for B2B, where we have partnerships in 45 countries with local operators. We help them to supplement their domestic offer with French races and our attractive pools. In 2015, we achieved excellent results in Scandinavia, in particular with our newest market in Norway, where a local punter actually won the Quinté+ in November.

10 THE ESSENTIALS We have just signed a partnership in Russia, for which we have high expectations this coming year. XH_ For a long time, B2B was the only expansion vehicle for PMU. However, in some countries, the competition is fierce, not only from rival operators, but from other types of gaming. To maintain a presence in markets with strong potential, we began to establish a B2C presence in 2013 by acquiring local operators or opening our own subsidiaries. We started in Belgium with the acquisition of Eurotiercé, then stepped up our activity in 2015 in Germany and Brazil. As a direct operator, PMU have more power to influence the market and its structure. Profit from our common pool enables us to develop local subsidiaries, and this in turn has positive consequences for the French horseracing industry. Each case is unique, and we take the time to observe closely the conditions in each market and decide how our business model could enable further growth and development. This year, PMU made a major statement by establishing a lasting presence in Germany and opening its first subsidiary in Brazil. How did these two initiatives comeabout? XH_ We were already present in Germany via a long-standing B2B partnership with the main local operator, German Tote. We therefore had excellent knowledge of the market, which though underdeveloped has strong potential. Germany, like France, is a country with a proud horseracing tradition, but the local racing associations can benefit from a more dynamic betting offer.

11 PMU - ACTIVITY REPORT / 7 d We therefore took a majority stake in German Tote, which will allow PMU to guide its development. Our objective is to relaunch operations by significantly expanding the betting offer, both on and offline, and above all by opening up the world of German horseracing to a wider audience. That will enable us to build a more robust European sector. AV_ In the case of Brazil, it all began three years ago, when we were contacted by the Rio-based Jockey Club Brasileiro (JCB). Given that PMU enjoys an excellent reputation internationally, the idea was to develop the market with JCB by adapting the French horseracing sector s structural model to Brazilian specificities. We implemented this strategy in 2015 with the launch of PMU Brasil, which has the mission of bringing the local horseracing sector and betting market into a new era. There is already a good deal to build on, notably in terms of infrastructure, but in order to revitalize the market it will be necessary to offer more racing and betting on foreign content, to open new sales outlets, to launch online betting, and to consolidate and develop local industry knowhow and expertise. Beyond an increase in turnover, what benefit does PMU derive from these experiences? AV_ Because each case is unique, every new initiative is a learning experience which enables us to constantly improve our offer and our model in France. Germany, for example, took us forward in terms of customer experience and betting possibilities at racecourses, which influenced our thinking around the launch of the new experience at Paris racecourses last September. Belgium allowed us to test our digital development model to offset regulatory restrictions on physical expansion. As a result, we fine-tuned our online strategy. Brazil, meanwhile, looks very promising in terms of questions surrounding the structure of the horseracing sector, and will no doubt provide us with new ideas to trial here in France.

12 THE ESSENTIALS XH_It is also important to remember that, with each new partnership or direct involvement, our common pool becomes more competitive, offering our punters, both in France and abroad, an enhanced choice of bets and races. Alongside this, the boost to the racing industry as a whole means that the sport of horseracing is becoming more international, and talented participants are going global, which is always a good thing. And tomorrow, China? XH_We have been nurturing this relationship in China for the past four years. It involves not only PMU, but the entire horseracing sector, and this year we opened a representative office in Shanghai with France Galop, Le Cheval Français and the Union Interprofessionnelle du Cheval. The effort is economic as well as diplomatic. During the last state visit with President François Hollande, PMU was the only business in the delegation proposing a new model for horseracing in China, and our contacts are particularly interested in what we have to offer: a proven model for creating a virtuous circle in order to develop a robust market for the horseracing sector. AV_ The Chinese market is highly unusual. Sports betting is allowed, but horserace betting is still prohibited. Nonetheless, there is an illegal parallel market around local races, which the Chinese authorities are attempting to clean up. Clearly, therefore, the punters exist, and there is a genuine appetite for horseracing. If the market were opened up, it would represent 50 billion. We are therefore engaged in a long-term effort to work with and lobby Chinese authorities, presenting the French model as an opportunity for the government to curtail illegal betting and develop a thriving local horseracing sector.

13 PMU - ACTIVITY REPORT / 9

14 THE ESSENTIALS

15 PMU - ACTIVITY REPORT / 11 B E R U L E C A P A B L E N U M B E R O F 0 2 R E I N V E N T I O N

16 THE ESSENTIALS Or how PMU is renovating its network of sales outlets in five adjectives. Innovative 1 To innovate, we must understand customer demand, satisfy it, and anticipate it. We must also be able to surprise. To do this, we are adapting our constantly growing network. Over 12,800 PMU sales outlets already provide efficient, nationwide coverage. However, it was essential to invest in updating them in order to continue to build the loyalty of existing punters and recruit new ones. This year, we specifically mobilized our resources to ensure that our core business horserace betting in sales outlets was the first to benefit from the PMU 2020 strategy. We are targeting both seasoned horserace punters and the wider public by segmenting our retail offer, while simultaneously bringing our outlets into the digital era by accelerating our upgrade programme.

17 PMU - ACTIVITY REPORT / 13 2 PMU took many by surprise with the launch of a complementary, wholly owned network in cities across France. These brand new spaces, called PMU City, are entirely devoted to horseracing and located in city centres Urban just where our traditional network was thin on the ground. Since 2011, we have opened 17 such spaces, with 30 planned by They are modern, connected outlets, which express the PMU spirit in a new way more intense, more concentrated, more passionate Bespoke We have long believed that the emotion of betting could speak to everyone providing we spoke to them in the right way. We have therefore reconfigured our sales outlets according to three distinct concepts: updated classic PMU for seasoned racing followers, happy PMU to discover the world of betting in a playful way, and PMU express to go straight to the point wherever you are. Focused on our hipigo terminals, the happy PMU and PMU express concepts adopt practices of gaming and casinos to show horserace betting in a new light, less restricted to insiders and more open to all. Particular attention has been devoted to the design, colours and location of these new spaces in everyday leisure and consumption destinations, in order to reach out to new punters without waiting for them to enter a PMU outlet. 3

18 THE ESSENTIALS 4 We are strongly committed to our network of sales outlets. Culturally, cafés are the last bastion of conviviality in an increasingly fast-moving world. convivial They are one of the rare places where people take the time to talk and to share. Their friendly, neighbourhood ambiance is at the heart of the PMU identity, and the renovation of our network remains fundamentally inspired by this spirit of conviviality. We like to think that we are contributing to a real-life social network and making the emotion of betting more accessible. tactile 5 This year, we invested in the creation of a new customer experience at our Paris racecourses. To bring these temples of horseracing into the digital era and attract a new clientele, we implemented a concept around personalization, accompaniment and new technology. These innovative spaces feature advice points and touch terminals enabling punters to place their bets at their own pace. More welcoming, more convenient, more exciting, these new-look racecourses facilities generated a positive response from customers.

19 PMU - ACTIVITY REPORT / 15

20 THE ESSENTIALS

21 PMU - ACTIVITY REPORT / 17 K E E P R U L E T H E N U M B E R P A S S I O N 0 3 A L I V E

22 THE ESSENTIALS Or how PMU is revitalizing its longstanding relationship with punters. Maximize We are unique and fortunate in that our client relationship is not limited to satisfaction with a one-off purchase. On the contrary, between us and our customers there is a long-standing transactional relationship, which is renewed every time a bet is placed. Such relationships are pretty rare except, perhaps, with your local baker! It is this day-to-day relationship that we aim to maintain and maximize. Because we see our customers every day, we need to offer them an experience on a par with their passion. This emotion must be present in the bet intelligence, in the offer, the promotions, the special events, as well as in the way we accompany our clients physically and digitally.

23 PMU - ACTIVITY REPORT / 19 Animate Our punters are much more than regular customers or subscribers they are people with a passion. That is why we aim to create smooth, seamless experiences, so that nothing gets in the way of their enjoyment. The harmony between online and offline is of vital importance, because it allows individual punters to bet exactly when, where and how they want. On this dedicated platform open to all punters, members can chat on forums and receive assistance from both our advisers and their peers. For us, this client-client relationship is very important, because it vastly increases our capacity to listen and to respond to needs. Such exchanges and feedback enable punters to enjoy a complete experience and to share their emotion with others. This year, we decided to extend the convivial ambiance of our sales outlets by creating and animating an online community on entraide.pmu.fr.

24 THE ESSENTIALS Inspire For our punters, the emotion of betting depends not only on the moving image, but also on our ability to inform them in real time. That is why, starting this year, Equidia Live now offers all its domestic broadcasts in HD, putting the punter right in the thick of the action thanks to unrivalled image quality. This development adds to the appeal of our sales outlets and enables everyone to enjoy racing to the full. Equidia Info and Equidia Live HD provide in real time all the information needed by those punters who love comparing data and forecasts. The quality of our horseracing information is another way for us to build customer loyalty and allow our punters to give free rein to their passion. Over the past few years, we have stepped up our sporting sponsorship activities and rolled out initiatives to make the experience even more memorable for our players. In 2015, the PSG Insider project transformed a punter into a reporter who went behind the scenes of the Paris Saint-Germain Football Club for four weeks. We also arranged for a number of lucky winners to watch the final of the Coupe de France from a platform 45 metres up above the Stade de France. Not to mention our many rugby initiatives and the Hip Poker Tour! Emotion is the essence of what we do, and we will continue to build bridges between disciplines because, for PMU, betting is a sport in itself. Last but not least, we have reworked our identity and our advertising to put the punter at the heart of our message, making him both the target and the star. Emotion is in our DNA, and it is up to us to express that passion ever more intensely. Our goal is less victory on the field than in the eyes of our punters.

25 PMU - ACTIVITY REPORT / 21

26 THE ESSENTIALS Where we are and what we do

27 PMU - ACTIVITY REPORT / 23 COMMON POOL Austria Denmark Estonia Finland Ireland Luxembourg Malta Monaco Netherlands New Caledonia Norway Russia South Africa Spain Switzerland United States COMMON AND SEPARATE POOL Belgium Germany Sweden SEPARATE POOL Australia Benin Burkina Faso Cameroon Chile Congo Democratic Republic of the Congo Gabon Greece Guinea Conakry Hong Kong Hungary Italy Ivory Coast Lebanon Madagascar Mali Morocco Niger New Zealand Poland Sri Lanka Senegal Singapore Togo United Kingdom

28 THE ESSENTIALS The essentials

29 PMU - ACTIVITY REPORT / 25 horserace betting champion hurdler WITH 8,992 MILLION PLACED IN BETS IN 2015, PMU TOOK EVERY FENCE IN STRIDE TO REMAIN EUROPE S UNDISPUTED NUMBER ONE HORSERACE OPERATOR. PMU STAYED THE COURSE THROUGHOUT A CHALLENGING YEAR MARKED BY ACCELERATED INTERNATIONAL DEVELOPMENT, NEW OBLIGATIONS REGARDING THE SEPARATION OF BETTING POOLS, AND GALLOPING DIGITAL TRANSFORMATION #1 operator in Europe , a landmark year PMU teams worked all year to prepare for the separation of online and offline betting pools, which came into effect in December. The change took place smoothly, with a limited impact on business and zero impact on punters. As forecast, bets declined by -2.6% online and by -3.1% in sales outlets. Consolidating the trend of recent years, and the strategy adopted by PMU, bets placed via mobile devices registered strong growth (+26%). The share of mobile bets in online activity increased by 32% to represent 29% of online business in Total horserace betting was down by -1.8%, a decline offset by dynamic international growth (+11%). The establishment of two new subsidiaries in Germany and Brazil confirmed the upward trend of recent years, as did new partnerships in Norway, Russia and Sri Lanka, as well as the steady growth of existing partnerships in Belgium, Germany and Switzerland. 02 Innovation in the retail network With online boosted by the introduction of a new dedicated offer, the retail network was by no means off the pace in terms of innovation. The launch of a customer experience focused on accompaniment, personalization and new technology at Parisian racecourses represents an exciting development for the future. Finally, 375 new sales outlets opened in 2015 more than one a day! bringing their total number to 12,800. Of these, 2,500 have already been converted to offer the new concepts of PMU, happy PMU and PMU express 92 % the share of horserace betting in total PMU business

30 THE ESSENTIALS sports betting successful conversion SINCE THE OPENING OF ONLINE BETTING IN 2010, PMU HAS SUCCESSFULLY GAINED A STRONGHOLD IN AN EXTREMELY COMPETITIVE MARKET. WHILE THE FIFA WORLD CUP WAS THE HIGHLIGHT OF 2014, IN 2015 THE RUGBY WORLD CUP DELIVERED ON ITS PROMISES WITH AN ARRAY OF OFFERS GEARED, IN PARTICULAR, TO BUILDING CUSTOMER LOYALTY 47 % of bets placed via mobile devices #2 sports betting operator in France 01 Loyalty pays Despite the absence of a major football tournament, the number of bets placed was up by 4.9% to more than 22 million. This positive result can be attributed in particular to an increase in bonus initiatives, which are very popular with punters. Added to a higher response rate than in 2014, gross gaming revenue declined by 4.8%, but bets placed increased by 8.2 million. The major trend of 2014 continued, with bets placed via mobile devices up by 26% in value to represent 47% of business. Both live and combination betting also registered increases, respectively of 2.3% and 21.4% in volume. And what of individual sports? With football losing 4 percentage points in value owing to the absence of a major event, both rugby and tennis were up by 3 points. 02 New ideas 2015 was the year of new ideas. In late December, PMU became the first French operator to offer betting on connected watches via an extension of its mobile applications. In mid-november, PMU launched Multibonus grids on its mobile platforms, allowing punters to place combination bets quickly and easily, and be rewarded with cash bonuses when they win. PMU stepped up its social media strategy throughout the year, increasing the number of Facebook fans by 52% and Twitter followers by a massive 158%. We are nurturing an ever closer relationship with fans via games offering free bets as prizes, promotions highlighting our FFF and PSG partnerships, and numerous live match tweets

31 PMU - ACTIVITY REPORT / 27 poker stable stakes #3 poker operator in France IN A DECLINING MARKET (-8%), PMU POKER IS SUCCESSFULLY MAINTAINING ITS NUMBER THREE POSITION, PLAYING ITS CARDS RIGHT AND BUILDING CUSTOMER LOYALTY 25 % of active players use the mobile application Over the year, stakes declined by 4% and gross gaming revenue by 4.7%, though market share was up to 10.4% The slight drop in activity can be attributed to the absence of a Jackpot Sit n Go offer and the postponed delivery of new mobile applications, now scheduled for Cash games still dominate the table with 88% of stakes, but the tournament segment is recording the fastest growth with +7.8% in gross gaming revenue. The share of gross gaming revenue represented by mobile business has been increasing ever since launch, and currently stands at more than 15%. 350 tournaments offered every day Innovate and rule Unlike sports and horserace betting, poker has to create its own events in order to attract players. Twice a year, the French Poker Championship draws thousands of players over a 10-day period around more than 60 online tournaments with a total prize pool averaging 700,000. Every year, more than a hundred different offers are rolled out to boost the three poker segments: cash games, Sit n Go and tournaments. Live is another key dimension of the poker business. PMU is working to enhance the profile and appeal of its brand by offering players the opportunity to qualify for the major WPT National Events it sponsors (Paris, Marrakech and Cannes). The impressive results of the Team Pro also raise our profile, with Erwann Pécheux finishing second in a World Series tournament in Las Vegas!

32 THE ESSENTIALS 2015 in figures DESPITE A SLUGGISH ECONOMIC ENVIRONMENT, PMU SUCCESSFULLY LIMITED THE DECLINE IN ITS ACTIVITY IN 2015 THANKS TO CONCERTED EFFORTS TO IMPLEMENT SIX KEY STRATEGIC INITIATIVES OF THE PMU 2020 PROGRAMME % Increase in sports betting (by volume) / 18% market share 12,800 Sales outlets + 25 % Increase in bets via mobile devices (horserace betting, sports betting and poker) 19 jackpots won (a record) 3 foreign subsidiaries

33 PMU - ACTIVITY REPORT / million Net profit in 2015, paid in full to the racing associations that are members of the EIG 2.4 billion Gross gaming revenue 7.4 billion Winnings paid out to punters by PMU in 2015, a 75% rate of return 9.8 billion Total bets placed in million bets placed internationally, an increase of +11% 8.99 billion Total bets on horseracing in 2015 In million euros Change Stakes ,8% Return to punters ,8% Gross gaming revenue ,0% Gross margin before taxes ,4% Operating expenses ,6% Operating profit ,0% Net profit before taxes ,8% Taxes ,6% Net profit ,1% The implementation of major projects such as the transformation of the network of sales outlets and the relocation of the Data Center triggered a decline in operating profit (-4%), which was offset by strict cost control (+2.6%), resulting in net profit of 807 million, in line with objectives.

34 THE ESSENTIALS Management team PMU is run by a management committee comprised of 11 members. Strategic decisions are submitted to the Board of Directors and the General Meeting, which is attended by the 60 racing associations which are members of the EIG.

35 PMU - ACTIVITY REPORT / 31 FROM LEFT TO RIGHT _ AYMERIC VERLET Head of International Development _ BENOÎT COSSÉ Chief Financial Officer _ SAMUEL LOISEAU Marketing and Clients Director _ ALAIN RESPLANDY-BERNARD Deputy General Manager _ XAVIER HÜRSTEL Chairman and CEO _ MYLÈNE COLLIN Human Resources Director _ PIERRE PAGÈS General Secretary _ ÉRIC BRION TV-Multimedia Division General Manager _ CHRISTOPHE LERAY Chief Operations and Information Officer _ MICHEL ODDOS Chief Retail Officer _ BENOÎT CORNU Chief Communication Officer

36 THE ESSENTIALS Governance THE LEADING BETTING OPERATOR IN EUROPE, AND THE THIRD LARGEST PARI-MUTUEL BETTING COMPANY WORLDWIDE, PMU IS AN EIG COMPRISING 60 RACING ASSOCIATIONS WHOSE MISSIONIS TO SUPPORT AND FINANCE THE DEVELOPMENT OF THE FRENCH HORSERACING SECTOR. Board of Directors The 10 members of the PMU Board of Directors are elected by the General Meeting. They deliberate on all decisions relating to the company s key strategic, economic, financial, commercial and technological initiatives. The Board of Directors comprises the Chairman and CEO, the Deputy General Manager, four representatives of the French government and four representatives of the EIG: Xavier HÜRSTEL Chairman and CEO of PMUl Alain RESPLANDY-BERNARD Deputy General Manager Édouard de ROTHSCHILD President of France Galop Dominique DE BELLAIGUE Chairman of the Société d Encouragement à l Élevage du Cheval Français Hubert TASSIN Member of the France Galop Committee Joël SÉCHÉ Member of the Board of Directors of the Société d Encouragement à l Élevage du Cheval Français Véronique BORZEIX Deputy Director of Rural Development and Equine Affairs, Ministry of Agriculture, Food and Forests Christian VANIER Executive Director of the Institut Français du Cheval et de l Équitation Sophie MANTEL Department Head, Budget Directorate, State Secretariat for the Budget Henri HAVARD General Inspector of Finances Also in attendance Florent GUHL Government Commissioner to PMU Sylviane MIROUX State Controller

37 PMU - ACTIVITY REPORT / 33 EIG statute PMU is an Economic Interest Group (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 Le Trot for trotting races. Two supervisory bodies PMU comes under the authority of two French government ministries: the Ministry of Agriculture, Food and Forests, and the State Secretariat for the Budget. In addition, the opening of any new sales outlet must be approved by the Ministry of the Interior. General Meeting The General Meeting brings together twice a year 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 and, on the latter s recommendation, the Deputy General Manager. Both appointments must then be approved by the two supervising government ministries. SECTOR A mission: to finance the French horseracing sector Historically, PMU has marketed bets on horseraces. Since 2010, it has also offered sports betting and poker. A wide range of betting options are offered 365 days a year, complete with associated services and all the information required by punters. PMU net profit 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 modernization of the 242 racecourses and training centres, breeding operations, distribution of prize money and the organization of races, more than 16,500 of which are open to PMU betting. The racing associations also contribute to the continuation of some hundred specialized trades, representing 180,000 jobs: jockeys, stable workers, grooms, farriers, riding instructors, veterinarians, saddlers etc. Dynamic, resilient and well-structured, the French horseracing sector is healthy. It is a model respected by all countries with a horseracing tradition, and which is now being exported around the world.

38 THE ESSENTIALS Responsible gaming Betting better AT PMU, BETTING HAS ALWAYS BEEN COMBINED WITH A SENSE OF RESPONSIBILITY. WE ARE WELL AWARE THAT A POSITIVE BETTING EXPERIENCE IS ONE THAT TAKES PLACE WITHIN A SECURE CONTEXT, WHERE ALL INVOLVED ARE IN FULL POSSESSION OF THEIR FACULTIES, AND RESPECT A SET OF COMMON-SENSE RULES. As early as 2008, we laid down our philosophy in a charter entitled Our responsibility, our commitments, which defines the framework for our permanent communication initiatives and our responsible gaming rules. These guidelines apply equally to all our employees, sales outlet managers and punters. Sales outlet managers, who are our front-line ambassadors, benefit from a dedicated programme comprising a specific brochure and an e-learning module to regularly update their knowledge of the fundamentals of responsible gaming. Supported by simple, accessible and nonjudgmental messages, our strategy is designed to promote positive behaviours. It is focused on four key themes which form the basis of our ongoing communication drive. Each year since 2013, we have chosen to highlight one theme in particular, deploying the majority of our initiatives around its message. After the prohibition of credit betting in 2013 and the prohibition of underage betting in 2014, this year we publicized the dangers of betting when under the influence of alcohol. To accompany the message alcohol and betting are not a good match, we distributed two million brochures to our customers and installed specific display units in our sales outlets. We also rolled out a specific e-learning module for outlet managers which featured a quiz game encouraging them to take ownership of the message. In addition to this themed communication, every PMU touch screen and payment terminal displays our responsible gaming campaigns for our punters to see. They also feature on the banners of our websites and mobile applications. THE FOUR THEMES OF RESPONSIBLE GAMING 1 Betting is only for over-18s: minors must not play for money. It is forbidden by law. The earlier betting starts, the greater the risk that it deviates from a recreational activity into a serious habit or even addiction. 2 Playing whatever the cost is not a good bet: it is important to be aware of extreme behaviours, such as impulsive gambling, the immediate urge to recover losses, and the impression of being able to control chance. 3 Betting on credit is not allowed sales outlets are prohibited from offering credit to punters. Credit betting is a risk both for the outlet manager, who might never be paid, and for the punter, who accrues debts in order to fund his betting. It is a process that can lead to financial, moral and family problems. 4 Alcohol and betting are not a good match: gaming requires clear thinking. The decision to place a bet must never be impulsive, but always deliberate. Alcohol can influence the way someone plays. Under the influence of alcohol, ideas become mixed up and excitement can lead to a loss of control.

39 PMU - ACTIVITY REPORT / 35 CSR at PMU, CSR is a way of life SINCE 2012 AND ITS FIRST EVER CARBON ASSESSMENT, PMU HAS BEEN RAISING AWARENESS AMONG ITS EMPLOYEES TO ENVIRONMENTALLY RESPONSIBLE ACTIONS IN THE CORPORATE SETTING. THE SAME POSITIVE APPROACH APPLIES TO SOLIDARITY-BASED PHILANTHROPIC INITIATIVES, ENABLING INDIVIDUALS TO USE THEIR SKILLS FOR THE BENEFIT OF OTHERS. IN JUST THREE YEARS, CORPORATE SOCIAL RESPONSABILITY (CSR) HAS BECOME A WAY OF LIFE SHARED BY ALL. Oscar tips The 2012 carbon assessment was clear: we had improvements to make in terms of energy saving, recycling, consumption, transport and we were going to need a helping hand! Enter, in 2014, Oscar Touvert, a cartoon jockey with a winning smile who gives our employees tips on waste sorting and reduction, energy savings and alternative means of transport, and links them to in-house initiatives, such as our partnership with the BlaBlaCar car-pooling service and the free mugs provided to replace disposable cups. Between them, Oscar and our employees have succeeded in reducing our paper consumption by half and our energy usage by -11%! Solidarity rules In 2014, after an inhouse consultation with employees, PMU restructured its corporate solidarity strategy in line with its core values. To encourage social involvement and support economic initiatives, three levels of commitment are open to employees. In partnership with the association Pro Bono Lab, employees can donate their time and expertise to advise an association on, for example, marketing, finance or communication, thus helping it bring a project to fruition. In 2015, such missions benefitted Talents Optimistes, which supports new university graduates seeking to enter the world of work, and UPTIH, which assists self-employed people with a handicap in attaining their goals. PMU also offers employees who have already committed to an association the opportunity to present their project to a panel chaired by Xavier Hürstel in order to obtain financial backing. In 2015, the panel chose the Association Française des Femmes Pilotes, which offers scholarships to women who want to train in an aspect of aviation. Last but not least, PMU encourages its employees to support a young person through studying and job-seeking. Two associations were selected for their affinity with the values of PMU: Sport dans la Ville, which aims to promote the social and professional integration of young people from deprived areas via sport, and which accompanies 600 young people via its job in the city programme; and Frateli, which provides professional mentoring for highpotential scholarship students.

40 THE ESSENTIALS C A R T E B L A N C H E P M U T H I E R R Y F O N T A I N E FOR THE PAST SIX YEARS, PMU HAS SPONSORED CONTEMPORARY PHOTOGRAPHIC CREATION. EACH YEAR HAS PRESENTED A UNIQUE VISION OF THE WORLD OF GAMING, AS SEEN BY AN ARTIST.

41 PMU - ACTIVITY REPORT / 37 THE CARTE BLANCHE PMU 2015 JUDGING PANEL: Carte blanche PMU opened a new chapter in its history with an exhibition in the Photography Gallery of the Pompidou Centre. Inaugurated in 2010 with the renowned LE BAL arts centre, the competition has expanded to such an extent that it can now address a wider audience visitors to France s leading centre for contemporary art with a vision that reveals PMU in an entirely new light. The 2015 winner, Thierry Fontaine, puts himself in the place of punters in order to bring to life the dreams associated with betting. He presents punters as alchemists, dreaming of transforming lead into gold. Nothing is impossible, he says. It is about switching roles, transforming the player into a dream, and the dream into a player. In addition to the exhibition at the Pompidou Centre, the artist s work was rewarded with a 20,000 prize and a book published by Editions Filigranes. Paula Aisemberg Director of La Maison Rouge Jacqueline d Amécourt President of the Honorary Committee of the IACCCA (International Association of Corporate Collections of Contemporary Art) Valérie Belin Artist Olivier Cablat Photographer, winner of Carte blanche PMU 2012 Clément Chéroux Curator at the Centre Pompidou Musée National d Art Moderne Centre de Création Industrielle Head of Photography Benoît Cornu Chief Communication Officer of PMU, Chair of the judging panel Diane Dufour Director of Le BAL Nicolas Ferrand Collector, founder of Le Quotidien de l Art Chantal Nedjib President of L Image par l Image

42 701 kg of materials sent to landfills 102 kg of CO 2 1,018 km travelled in an average European car In using Cocoon Silk and Cocoon Offset rather than non recycled paper, the environmental impact of this annual rapport is reduced by: 20,483 litres of water 1,278 kwh in power supply 1,139 kg of wood

43

44 PMU - INTERNATIONAL DEPARTMENT: 2, rue du Professeur Florian Delbarre Paris Cedex 15 - com.presse@pmu.fr Publishing Director Benoît Cornu Managing Editor Céline Gillet Editor-in-Chief Laurence Mercier Technical adviser Annie Gatesoupe Design And Conception: agence Aristophane Photography: Fréderic Stucin / Silo

45

46