1 - Asia Pacific Lottery Association

LOTTERY INDUSTRY
UPDATES : PDJ
APLA - Annual Regional Conference
19-23rd October 2015
SAIL WITH KOREA WAVE !
APLA - Annual Regional Conference
19-23rd October 2015
SURF WITH POLYNESIA WAVE !
APLA - Annual Regional Conference
19-23rd October 2015
PRESENTATION
1. THE LOCAL CONTEXT
2. THE COMPANY
(POLYNESIA & POLYNESIANS)
(SALES, NETWORK & GAMING MODEL)
3. OUR CHALLENGES
(SPORTS BETTING & INTERNET)
Thierry GABARRET
Chief Executive Officer - La Pacifique des Jeux, French Polynesia
International Relations Director - La Française des Jeux, France
Executive Board Member of Internationale des Jeux, France
Vice-President of Beijing Zhongcai Printing, China
APLA - Annual Regional Conference
19-23rd October 2015
1. THE LOCAL CONTEXT
WHAT IS FRENCH POLYNESIA ?
Which history ?
What geography ?
Society Islands
1767 : descovered by Captain
Samuel Wallis
Marquesas Islands
Tuamotu Archipelago
Where is it ?
1959 : became a « French
Overseas Territory »
9,763 miles from Paris
6,606 miles from Seoul
Gambier Islands
1984 : Status of « Internal
Autonomy »
5,897 miles from Tokyo
4,104 miles from L.A.
3,808 miles from Sydney
Austral Islands
2014 : A long-lasting crisis
(since 2008)
WHO ARE THE POLYNESIANS ?
Ma’ohi : 66%
Split of
population
by cultural
make up
Mixed Tahitians : 17%
Europeans : 12%
Chinese : 5%
WHAT ARE THE RELIGIONS ?
Protestants : 54%
Split of
population
by religion
Roman Catholics : 30%
Others : 10%
No religion : 6%
DEMOGRAPHIC DISTRIBUTION
35%
30%
0 - 14 yo
65+ yo
25%
20%
15%
10%
5%
0%
Korea
Cambodia
Asia
F. Polynesia
World
France
Europe
42% of the population is under 20 yo
10% of the population is above 60 yo
SCOPE OF THE LOCAL MARKET
Illegal betting
Cock
Under question
Casino
Va’a
Horses
PDJ monopoly
Instant
games
Draw
games
Poker
Sport
betting
Kikiri
Amigo
SPECIFIC CULTURAL MAKE UP
Weight of religion
Weight of tradition
Role of superstition
Necessity to deal with these issues
2. THE COMPANY
KEY FIGURES
Total sales 2014 : €42 M
i.e. 0.3% of FDJ total sales (€12.99 bn)
5 draw based games
15 scratch games
140 POS over a territory as
wide as Europe (0,4% FDJ)
No sports betting
No digital lottery
165,000 players (88% of adult pop.)
20 direct employees (137 indirect)
100% subsidiary of FDJ (under specific
agreement with Polynesian government)
ORGANIZATION CHART
Thierry GABARRET
Chief Executive Officer




Valérie VEDEL
Didier PAUTRAT
Executive Assistant
Deputy General Manager
Patrick GASSION
Guillaume REYNAUD
Hinano FREDRIKSEN
IT & Security Manager
Commercial & Marketing Manager
Finance & Accounting Manager
Caroline PEREZ
Mereana VANAA
Hinano MANA
Thérèse AHINI
Sales Assistants
Nastasia LAW
Thomas SONNENTRUCKER
Product Manager
Logistics Manager
 Orama MONFOUGA
 Vanessa BISIAUX
 Manolios CHANG
 Chantal RERE
Sales Promoters
 Myrna LY
 Noémi TUAIRAU
Control
Vaiana CONAN
Magali TIHONI
Retail Accounting
General Accounting
PDJ SALES AND NETWORK
Average sales per period of time
42.7
In M€
Points of sale
43,7
TAHITI = 73%
37.7
ISLV + BORA = 13%
27.7
MOOREA = 7%
23.5
TUAMOTU = 4%
AUSTRALES = 2%
MARQUESAS = 1%
1991-1995
1991-1995
1996-2000
1996-2000
2001-2005
2001-2005
2006-2010
2006-2010
31/12/2012
2011-2014
POS
Sales 2014 : € 42 M compared to € 13 bn for FDJ (0.3%)
PDJ
140 POS compared to 32,700 retailers for FDJ (0.4%)
FDJ
PHYSICAL NETWORK
SPLIT BY GAMES
100%
10%
60%
sell scratch
games
90%
GEOGRAPHICAL DISTRIBUTION
3 POINT DE VENTE
5 POINTS DE VENTE
3 POINTS DE VENTE
7%
2 POINTS DE VENTE
1 POINT DE VENTE
9 POINTS DE VENTE
73%
13%
1%
4%
9 POINTS DE VENTE
97 POINTS DE VENTE
1 POINT DE VENTES
2%
2 POINTS DE VENTE
OUTDOOR SIGNAGE
Lottery signs
Signage material
Promotional posters
Jackpot display
INSIDE EQUIPMENT
Dedicated
counter
Dedicated
Gaming
Modulo
player’s space
Promotional
posters
Winners’
promotion
EVOLUTION OF SALES
46 914 K€
42 006 K€
39 846 K€
OXO
EURO MILLIONS
AMIGO
RAPIDO
KENO
JOKER+
LOTO + SUPER LOTO
SCRATCH GAMES
2000
2001
2002
2003
2004
Draw based games : 86%
2005
2006
2007
2008
2009
Scratch Games 14%
2010
2011
2012
2013
2014
STAKES PER TYPE OF GAME
5 draw based games (all FDJ’s games)
15 scratch games (5 launching a year)
TOTAL SALES
2015
REPARTITION
DU C.A.
TOTAL
auhalf-year
31/03/2015
DETAIL
GAMME
GRATTAGE
SCRATCH
GAMES
2015
14%
LOTO
16%
2%
27%
au
31/03/15
half-year
25%
16%
Out of scope 1
JOKER +
23%
30%
100 F
KENO
200 F
AMIGO
500 F
EURO MILLIONS
GRATTAGE
47%
Out of scope 2
SCRATCH GAMES FOCUS
Evolution by segment (15 games on 3 price segments)
100%
7%
6%
8%
90%
5%
13%
3%
4%
34%
80%
28%
37%
39%
40%
500 F
46%
200 F
13%
100 F
70%
1%
60%
60%
68%
75%
75%
50%
64%
54%
40%
54%
51%
12%
12%
10%
2010
2011
2012
50%
30%
20%
10%
34%
18%
16%
20%
24%
18%
0%
2005
2006
2007
2008
2009
2013
2014
REDISTRIBUTION OF STAKES
30,000
23.9 M€
Players
25,000
20,000
Total 2014 : € 40 million were redistributed
Since 1991 : € 0.8 bn to the local economy
15,000
Territory
8.5 M€
10,000
FDJ+PDJ
7.5 M€
5,000
Retailers
2.1 M€
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Players : 55% - Polynesian Territory : 22%
Retailers : 5% - PDJ + FDJ : 18%
2014
FDJ REDISTRIBUTION
95% of stakes redistributed
to the players, the distribution network and the community
Total 2014 : € 12.3 bn (+5,8% vs 2013)
Winners
65%
Equivalent jobs : 29,250 (current min wage)
Public Finance
24%
The players
Distribution network
6%
The community
The network (physical or not)
FDJ’s operations
5%
PDJ GAMING MODEL
INTEGRITY
DEVELOPMENT
RESPONSABILITY
SECURITY
PROXIMITY
More players who play less is better than
…
…
few players who play a lot !
PLAYER’S PROFILE
Opportunist
Ambitious
Interactive
Social
Solitary
SUPERSTITIOUS
Ordinary people
BY GENDER & AGE RANGE
Gender
Age
Players’ profile is similar to that of the population
BY SOCIO-DEMO & REVENUE
Socio-Professional category
Monthly Revenue
Players’ profile is similar to that of the population
SPENDING PER INHABITANT
In F.CFP per year
86,941
Moderate level of annual spending
74,002
High penetration rate : 88%
59,695
36,562
34,432
32,814
30,831
30,802
25,544
24,860
22,995
19,910
19,720
19,455
18,667
17,661
MAIN TASKS
“Ensure the integrity and the security of game operations …”
IMPLEMENT
CONTROL
ACCESS TO GAMES
Procedural
Regulatory
RULES
Ethical
Contractual
PRIZE PAIYMENTS
Legal
VALUES & COMMITMENTS
6 VALUES
THAT GIVE SENSE
Integrity
Fairness
Proximity
Optimism
Solidarity
Inventiveness
GAMES’ SUCCESS
Promote a safe and
regulated model
Give benefit to
the general interest
7 COMMITMENTS
IN KEY AREAS
1
• Corporate Governance
2
• Responsible Gaming
3
• Customer Satisfaction
4
• Community Involvement
5
• Environmental Impact
6
• Partner Relations
7
• Human Resources
CERTIFICATIONS
Certified ISO 27001 in June 2015
Certified WLA SCS in Sept 2015
PDJ has been a member of APLA since 2005
3. THE CHALLENGES
FDJ GLOBAL SALES EVOLUTION
€13 billion in sales revenue in 2014
Bets (Billions €)
15
+5.4%/year
+3.4%/year
10
8.9
0.3
2.1
5
3.0
9.5
0.4
9.3
0.4
9.2
0.6
2.2
2.2
1.8
11.4
10.0
0.8
1.7
10.6
1.1
3.3
3.5
3.5
4.3
2010
3.5
3.4
3.4
3.3
2005
2006
2007
2008
2009
1.4
1.6
1.4
13.0
Sports betting
1.4
1.4
Express games
3.9
3.7
3.8
Draw games
5.0
5.4
5.6
5.8
Scratch games
2011
2012
2013
2014
1.1
1.5
1.6
3.6
3.9
12.4
2.0
3.8
3.5
12.1
0
Strong growth over the last few years,
primarily attributed to successful, innovative products
FDJ SALES PER RANGE
+20%
15,2%
29,4%
10,6%
+1,7%
GLOBAL GROWTH
DUE TO :
-1%
- New option EUML
44,8%
- Soccer World Cup
- Instant tickets
+4,8%
FDJ SPORTS BETTING
Paris Mutuel since 1985 :Loto Foot
Oddset betting since 2003 : “ParionsSport”
Internet betting since 2009 : “ParionsSport”
23 different
sports
available
Mobile app launched in 2013 on iOS
(250,000 downloads)
15.2% of total sales for Sports betting
(+20% vs 2013)
N°1 IN EUROPE FOR
SPORTS BETTING
SPORTS BETTING PLAYERS
Mainly male and much more age cluster 25-44
Gender
90%
Age
Man
Women
Sports Betting
28%
30%
79%
80%
Population 18-65
33%
35%
26%
25%
25%
70%
20%
22%
20%
60%
50%
15%
49% 51%
13%
12%
10%
40%
8%
5%
30%
21%
20%
10%
0%
Population 18-65
Sports Betting
0%
18-24
25-34
35-44
45-59
60-65
SPORTS BETTING WORLDWIDE
9000
2014 ranking
Sales in M€
N°1
8000
7,540
7000
6,070
6000
5000
N°4
4000
3000
2,357
1,978
2000
1,511
868
1000
597
0
1
China
Sports
Chine
2
HKJC
Hong Kong
3
Sports Toto
Corée du Sud
4
FDJ
France
5
OPAP
Grèce
6
Lottomatica
Italie
7
Svenska Spel
Suède
FDJ remains n°1 in Europe. All the lotteries take benefit from the Soccer World
Cup : China Sports (+82%), HKJC (+24%), FDJ (+20%), OPAP (+20%)
FDJ DIGITAL OPERATIONS
118 million online bets a year
+ 45% for online sports betting (€ 109 M i.e. Rmb 782M)
+ 10.3% for online lottery games (€ 368 M i.e. Rmb 2.6 bn)
7.1 million visitors
per month
2014 digital sales up 16.7%
600
500
400
300
200
100
0
4.00%
3.00%
2.00%
1.00%
Online sales
0.00%
2007
2008
2009
2010
2011
2012
2013
2014
% of total sales
SOCIAL NETWORKS
2 434
5 432
143 620
TOTAL FDJ
3 782
133
874 217 fans
31 707
127 942
Groupe
EUML
131 247
45 401 followers
Fondation
Eté
FDJ
LOTO
571
CHALLENGES
Equipe
Illiko
62 746
FDJ
Parions
Parions
Web
Sport
33 638
3 538
Increase the audience and
the coverage of the brands
341 278
Participate in chats and
develop proximity
9 151
26 526
5 760
Listen, moderate and
watch the e-reputation
FACEBOOK PAGES
DRAW GAMES ARE CRUCIAL
To ensure a large base of players among population
To develop the base with the most regular players
To inspire dreams and hopes for everybody
To give the tempo & rhythm for the players’ life
INSTANTS ARE ESSENTIAL
To give access to gaming to the largest population
To grant a winning experience to players (pay outs)
To bring permanent novelties to the market
To enable to recruit new players (1st price segment)
OTHERS AS OPPORTUNITIES
ENRICH THE PORTFOLIO IN ORDER TO :
● satisfy much lower players base than the core range
● create a niche or a complement to attract new players
● enable new practices and recruit new players
● reach the motivations, needs & hopes of the players
● permanent entries and departures create a need to
recruit permanently to ensure a consistent development
● trust and confidence of people are fragile
STRENGHTEN THE MODEL
Coming challenges
Present moves
Products
1
Retail
Digital
2
International
3
CSR
4
Security
5
Integrity
6
• Recruit new players
• Enhance proximity
• Responsible Gaming
• Security and Integrity
• Higher performance
• Corporate image
… RUN THE BUSINESS SMARTER
SELL BETTER = SELL MORE !
« SELL WITH KOREA WAVE ! »
APLA - Annual Regional Conference
19-23rd October 2015
APLA - Annual Regional Conference
19-23rd October 2015