FDJ 2022 Investor Day

17 Nov 2022 08:19 CET

Continuation of the sustainable value creation trajectory

Medium term financial and non-financial goals

Regulatory News:

La Française des Jeux (FDJ) (Paris:FDJ) will hold its 2022 Investor Day this afternoon, during which the Group will present its strategic, ESG, operational and financial goals.

“Our excellent 2022 performance, which exceeded our expectations thanks to continued momentum in online sales and the rebound in the point-of-sale business, allows us to confirm our medium-term growth and profitability objectives despite a more uncertain macro-economic context. We will continue to invest in parallel in protecting players and amplifying our positive impact on society. The Group is well positioned in France and internationally to pursue its sustainable value creation trajectory, combining financial and non-financial performance for the benefit of all its stakeholders,” said Stéphane Pallez, Chairwoman and CEO of FDJ Group.

Continuation of FDJ Group’s sustainable value creation trajectory

FDJ Group aims to continue creating sustainable value for all its stakeholders, inspired by its “raison d’être” (purpose): “Gaming is our business, giving back to society is what drives us, and responsibility is our constant focus.”

The implementation of this aim is based on three key strategic priorities:

- Strengthening lottery growth drivers by pursuing digitalisation and developing omnichannel sales;

- Pursuing momentum in sports betting and supplementing the online gaming offering with poker and horse-race betting with the ongoing acquisition of the ZEturf group;

- Further developing diversification activities: Payment & Services in France and the promotion of the Group’s expertise internationally.

As a result:

- 2022 guidance is reiterated

For FY 2022, FDJ anticipates:

- Revenue growth of more than 8%;

- An EBITDA margin of around 24%.

- 2025 financial targets are confirmed

FDJ Group’s 2020-2022 performance has shown the relevance of the medium term strategy implemented since 2019 with, in particular, very strong momentum in the online business and a good performance in the point-of-sale business after the health crisis.

The Group will maintain a high level of investment to:

- Continue to develop the range of games and services;

- Implement its customer knowledge strategy, in particular to support players with regard to the risks associated with gambling;

- Continue to modernise and make the network more attractive by offering new payment services to generate additional footfall and revenue for points of sale.

Overall, by 2025, FDJ is aiming for:

- Average annual revenue growth at the upper end of the 4%-5% range from 2022 to 2025;

- Average annual online stakes growth of above 20% from 2022 to 2025;

- An EBITDA margin above 25% in 2025;

- Cumulative investments maintained at €600 million over the 2020-2025 period;

- A cash conversion ratio of over 80% from 2022 to 2025;

- A payout ratio between 80% and 90% of the FDJ Group’s net profit;

- A financial debt ratio (net financial debt to EBITDA) of 2, including acquisitions.

Based on a strong performance in 2022 and 2023 revenue in line with the medium-term trajectory, and in an uncertain economic environment, FDJ aims to achieve a stable EBITDA margin in 2023 compared to 2022.

- Increased non-financial objectives

FDJ intends to continue to strengthen its CSR initiatives and to maintain its non-financial performance at the highest level.

- FDJ promotes responsible gaming at various levels:

• 100% of its games are evaluated using an internal matrix to measure their attractiveness;
• 10% of its overall advertising budget is assigned to the prevention of underage and excessive gambling;
• 100% of its retailers are trained in responsible gaming.

To deepen its approach to preventing excessive gambling and support the development of its online activity, the Group is committed to reducing the share of gross revenue from online lottery games derived from high-risk players to below 2% by 2025.

- FDJ has been working for more than a decade to reduce its environmental impact by contributing to the fight against climate change and the preservation of biodiversity. Having already achieved its goal of reducing its direct carbon footprint set for 2025, FDJ is working to implement a new path to halve its carbon intensity across its entire emissions scope.

- FDJ aims to increase its societal impact through its commitments to sports and the renovation of regional heritage sites, and the initiatives it supports to advance equal opportunities. Its Foundation has a budget of €25 million for the next five years, up 28% compared to the previous five years.

- FDJ is making efforts to continuously improve its ESG ratings in line with its ambition to be one of the top ESG performers in Europe. FDJ aims, in particular, to renew its A1+ rating by Moody’s ESG, which has ranked it in the top 5% best performing companies worldwide for the past four years.

FDJ Group’s 2022 Investor Day will begin today at 4:00 p.m. All presentation materials and a recording of the presentations will be available on FDJ’s website at the following address:

https://www.groupefdj.com/fr/actionnaires/presentations-financieres.html

About La Française des Jeux (FDJ Group)

France’s national lottery and leading gaming operator, the #2 lottery in Europe and #4 worldwide, FDJ offers secure, enjoyable and responsible gaming to the general public in the form of lottery games (draws and instant games) and sports betting (ParionsSport), available from physical outlets and online. FDJ’s performance is driven by a portfolio of iconic and recent brands, the #1 local sales network in France, a growing market, recurring investment and a strategy of innovation to make its offering and distribution more attractive with an enhanced gaming experience.

FDJ Group is listed on the Euronext Paris regulated market (Compartment A – FDJ.PA) and is included in indices such as the SBF 120, Euronext 100, Euronext Vigeo 20, EN EZ ESG L 80, STOXX Europe 600, MSCI Europe and FTSE Euro.

Pour plus d’informations, www.groupefdj.com

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