OPAP S.A. Corporate Presentation November 2006 Nikos Polymenakos Investor Relations 1
Agenda!Company Overview!Recent Developments!Financials!Stock Info!Investment Perspectives 2
Company Overview 3
Company Snapshot! The leading Greek gaming company! Fixed-odds presence in Cyprus! Market cap on Athens Exchange c. 9.0 bn (November 2006)! 20-year exclusive Concession! 52% of the total Greek gaming market! Largest on-line retail network in Greece! 2005 revenues of 3,695m and adjusted EBITDA of 714m! High dividend pay-out policy! Current free-float: 66% 4
Industry Background m 6.000 5.500 5.000 4.500 The Greek gaming market: 1998-2004 18% CAGR 35.3% 4.000 3.500 38.9% 39.7% 33.2% 3.000 40.3% 2.500 2.000 1.500 1.000 500 0 44.5% 26.4% 11.2% 7.5% 10.4% 48.5% 22.0% 11.0% 6.3% 12.3% 37.9% 8.0% 4.5% 9.3% 41.3% 7.4% 4.2% 8.2% 42.0% 6.9% 4.0% 7.3% 49.0% 7.5% 2.7% 7.6% 52.6% 6.5% 5.6% 1998 1999 2000 2001 2002 2003 2004 Horse Racing Instant Lotteries State Lotteries OPAP Casinos Source: 1998-2003 OPAP; 2004 Greek National Statistics Services 5
Company Evolution Introduction of Games Introduction of Games 1959 1990 1992 1996 1997 2000 2002 2002 2003-1958 OPAP established Subsidies sports and cultural events 1999 Converted into a Société Anonyme 2000 OPAP obtains 20 year exclusive license for 323 m 2001 OPAP listed on the Athens Stock Exchange 2003 New agreement with Cyprus Republic Acquisition of fixed odds betting company in Cyprus 2004 Establishment of subsidiary OPAP Services SA 2005-2006 Additional forms of betting in STIHIMA Introduction of non sport events and Greek sport events 6
Evolution of Games 1995-2005 m 4.000 3.500 Revenues per game: 1995-2005 3.000 2.500 2.000 1.500 1.000 500 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 PROPO LOTTO PROTO PROPOGOAL JOKER STIHIMA SUPER 3 EXTRA 5 KINO 7
Overview of Existing Games Game Stihima Joker Lotto Propo Proto Super 3 Extra 5 Propo- Goal Kino Type of Game Sports Numerical Numerical Sports Numerical Numerical Numerical Sports Numerical Fixed / Mutual Fixed-odds Mutual Mutual Mutual Mutual Fixed-odds Fixed-odds Mutual Fixed-odds 2005 Revenues (1) 1,438.3m 268.4m 58.2m 79.3m 44.7m 70m 20m 1.3m 1,714.5m 2005 Gross Profit 247.1m 95.2m 26.2m 28.8m 14.2m 20.3m 4.8m 0.2m 369.6m OPAP Share of Revenues 18.3% 38.0% 48.4% 36.0% 35.2% 32.0% 32.0% 37.8% 22.0% Year of Introduction 2000 1997 1990 1959 1992 2002 2002 1996 2003 Agent Commission 8% 12% 12% 12% 12% 8% 12% 12% 7.5% (2) Frequency of play Daily Twice weekly Twice weekly Three times weekly Twice weekly Three draws daily One draw daily Once a week 108 draws daily / 132 draws weekend (1) Includes operations in Cyprus (2) 1% is kept to be spend for the upgrading of agencies 8
Games Characteristics KNOWLEDGE MUTUAL FIXED ODDS LUCK 9
Largest On-Line Retail Network in Greece 10
OPAP s s Strategy In house operation of Stihima as of February 2007 Launch New and Redesign Existing Games Enhance our Distribution Network Continue to Combat Illegal Gaming Upgrade our Technological Platform and Infrastructure Diversify Operations Outside of Our Core Concession Continue to Strengthen Our Brand Drive Value Through Sustainable Earnings Growth and Dividend Distributions Within Framework of Social Acceptance 11
Recent Developments 12
! Gaming Sector " 16/02/2006: European Union the European Parliament through a decision excludes gambling from the scope of the Services Directive " 30/09/2006: USA the Congress passed the legislation, making it unlawful for creditcard companies to collect payments for transactions with onlinegaming sites. " 04/10/2006: Greece OPAP s initiative to format committee to combat illegal gambling! Introduction of Greek soccer and basketball events in Stihima as of August 2006! Increase of KINO daily playing hours Recent Developments 13
Agreement with INTRALOT S.A regarding the risk management and operation of Stihima! Transfer of know-how! Technological Infrastructure " Equipment: IT system, databases, teletext " Software: main system, terminals, risk management etc! 3.500 Terminals! Maintenance and technical support Recent Developments 14
Financials 15
Track Record of Growth Revenue ( m) 2001-05 Adjusted EBITDA ( m) 2001-05 4.000 17% CAGR 800 16% CAGR 3.000 2.000 1.000 0 3.177 3.695 1.806 1.974 2.282 2001 2002 2003 2004 2005 600 400 200 0 714 659 401 406 473 2001 2002 2003 2004 2005 Adjusted EBIT ( m) 2001-05 Adjusted Net Profit ( m) 2001-05 800 600 400 200 16 0 377 381 449 17% CAGR 630 691 2001 2002 2003 2004 2005 800 600 400 200 0 18% CAGR 241 249 291 409 458 2001 2002 2003 2004 2005 Note: Financial figures for 2004 do not include the provision for Intralot arbitration and also financing liabilities of the insurance deficit.
H1 2005 2006 Results Η1 05-06 ( m) Operating Revenues Η1 05-06 ( m) EBITDA Η1 05-06 ( m) Net Profit 2.500 34% 500 500 2.000 400 4,5% 400 1.500 2.290 300 300 12,5% 1.000 500 1.709 H1 '05 H1 '06 200 100 315 329 H1 '05 H1 '06 200 100 203 228 H1 '05 H1 '06 17
Revenue Mix 3.500 3.000 47% 59% 2.500 2.000 1.500 20% 23% 1.000 80% 77% 53% 41% 500 18 0 2002 2003 2004 2005 Stihima Propo Propogoal Joker Lotto Proto Extra 5 Super 3 Kino (2)
Margins Adjusted EBITDA Margin 25,0% 25,0% 20,0% 20,0% 15,0% 15,0% 10,0% 5,0% 22,2% 20,6% 20,7% 20,7% 19,3% 10,0% 5,0% 18,4% 14,4% 0,0% 2001 2002 2003 2004 2005 0,0% H1 `05 H1 `06! The margin decline in H106 was caused by the higher payout of Stihima (68% approximately) as well as the increased distribution costs. Source: OPAP Note: 2002 / 2003 / 2004 financials stated pre provision for Intralot arbitration and pre expenses for unfunded pension liabilities is not included 19
Dividend Policy 1,50 1,48 1,42 1,25 1,00 0,75 0,60 0,67 0,73 0,93 0,94 0,50 0,25 0,00 0,40 0,43 0,43 0,55 0,48 0,17 0,27 0,30 2001 2002 2003 2004 2005 Interim Dividend Final Dividend! The ex-interim dividend date is 11/12/2006. Eligible to receive payment are the shareholders as of 8/12/2006 while payment commences on 19/12/2006. 20
Stock Data 21
Stock Info! Listing date in ATHEX: 25/4/2001! OASIS: OPAP! ISIN: GRS419003009! Bloomberg: OPAP GA! Reuters: OPAr.AT! Index Participation " FTSE/ATHEX International " FTSE/ATHEX Travel Leisure " FTSE/ATHEX 140 " FTSE/ATHEX 20 " ATHEX General Index " ATHEX Composite Index Total Return Index 22
Stock Chart 70.000.000 Public Offering Issue Price 24,14 31-Oct-06 7-Jul-06 8-Mar-06 10-Nov-05 18-Jul-05 18-Mar-05 23-Nov-04 29-Jul-04 2-Apr-04 3-Dec-03 8-Aug-03 9-Apr-03 9-Dec-02 14-Aug-02 16-Apr-02 12-Dec-01 21-Aug-01 25-Apr-01 23 700 600 500 400 300 200 100 0 60.000.000 50.000.000 40.000.000 30.000.000 20.000.000 10.000.000 0 Public Offering Issue Price 9,44 Public Offering Issue Price 8,44 ATHEX G.I. OPAP Transaction Volume Public Offering Issue Price 5,5
Shareholder Structure 34% 57% 9% Hellenic Republic Retail Investors Institutional Investors 24
Investment Highlights 25
Superiority Highlights Sole Concession for 20 years Permits OPAP S.A. to take advantage the growth margins in the Greek Gaming Market Sales Network Further exploitation of the potentials offered by the sales network Strong Cash Flows Secure stable Dividend efficiency and effective Investment Policy Strong Fundamentals Favourable Market Dynamics, Credibility and Growth Strong Management Team Possesses Experience and Knowledge, and successful introduction of new games 26
Thank you 27