Solid 2018 results : Revenues up 1.8% to € 1.8 billion, EBITDA margin up 17.5%, net profit up to € 170 million

• Retailer remuneration up + 4% to € 785 million

Strong economic and social footprint : contribution of 
€ 5.4bn in GDP (+ 2.9% vs 2017)

• 52,500 jobs created or sustained

• Territorial impact: 20,350 jobs created or sustained in the local bar-tabac-presse trade

For Stéphane Pallez, CEO of the FDJ Group: "The Group's financial and non-financial results validate the relevance of our business model, which combines strong operational performance with redistribution to the community, including since 2018, the French heritage. Responsible Gaming policy and strong economic and social footprint. They allow the FDJ Group to continue its investments, both in terms of digital transformation and corporate social responsibility. With this in mind, FDJ is committed to allocate, as of 2019, 10% of its television advertising investments to Responsible Gaming . "

• Turnover of € 1.8 billion + 2.3% vs. 2017; EBITDA margin of 17.5%

In 2018, stakes were up + 4.4%, to € 15.8 billion and players' gains up + 5.7% to € 10.7 billion, with a return rate to players (TRJ ) up 66.8% to 67.6%, thanks in particular to the very good performance of sports betting.

FDJ records a gross gambling product (PBJ = stakes - gains) up 1.9% to 5.1 billion euros with a share of the economic gambling sector in France close to 50%.

FDJ's contribution to public finances rose 2.8% to € 3.5 billion, including € 3.3 billion in public levies on games.

FDJ's 2018 sales amounted to € 1,803 million, up + 2.3% vs. € 1,762 million in 2017.

Group operating expenses, excluding depreciation and amortization, amounted to € 1,488 million, up + 2.9%, after the first phase of retailers' compensation increase of + 4% to € 785 million.

Indeed, the agreement signed in 2018 to fully involve retailers in the sustainable development of the company has entered into force.

• In 2018, retailers benefited from the stop payment of the rental of furniture at the point of sale (more than € 13 million in 2017) and the remuneration of promotional activities, ie an equivalent of 0.1 commission point.
• In 2019, a 2 ^nd phase of increase in their remuneration, differentiated according to the games in order to support low lottery lottery games and the growth of sports betting in the network, applies, ie an equivalent of 0.2 point of commission.

Over two years, retailers' average total income will rise by +0.3 percentage points, or 5.5% of average commission per retailer, compared to 5.2% in 2017. Remember that 95% of the stakes are in the network of more than 30,000 points of sale.

FDJ posted a stable EBITDA of € 315 million, representing a margin on sales of 17.5% at a very satisfactory level. Excluding the impact of higher retailer compensation, the Group's EBITDA would have increased + 4.6% and the EBITDA margin on sales would have increased +0.3 points.

The stable operating result stands at € 257 million.

• Solid net income of € 170 million

FDJ Group's net profit for 2018 is solid at € 170 million, vs. € 181 million in 2017, including a financial result impacted by market developments end 2018.

With shareholders' equity up € 44m at € 564m and net cash surplus up € 33m at € 841m at the end of December 2018, the FDJ group continues to present a solid financial structure.

• CSR policy: reinforced priority on Responsible Gaming and strong commitment to the game of minors in 2019

Corporate Social Responsibility (CSR) is at the heart of the company's sustainable development model, with Responsible Gaming as a priority.

FDJ has reinforced its actions to train retailers to refuse sales to minors: more than 13,000 retailers trained in 2018.

The company broadcast during the World Cup an information campaign on the prohibition of gambling minors and integrated at the end of its Illiko TV campaigns a film recalling this ban. These actions mobilized in 2018 more than 2% of the television advertising budget. FDJ announces that as of 2019, 10% of the Group's television advertising investments will be dedicated to Responsible Gaming and in particular to the prevention of the game of minors *.

FDJ has maintained in 2018 at 100% its level of compliance for the Responsible Gaming certification of the European Lotteries, the highest level of commitment acquired in 2012. Its level 4 certification, corresponding to the highest level of global commitment, has also confirmed by the World Lotteries Association in 2018.

FDJ has also strengthened its actions in the following areas:

• Fight against fraud and money laundering : 4 billion gambling transactions and earnings payments were the subject of a risk analysis in 2018; in 2019, a "scoring" of money laundering risk will be developed and applied to all point-of-sale and online activity;
• Promoting diversity : FDJ obtained a score of 84/100 on the new index "equality women-men" established by the law Avenir Professionnel in 2018 and continues to strengthen its actions to improve its score in 2019;
• Fight against global warming : the group's greenhouse gas emissions fell by 8% in 10 years between 2007 and 2017, while the turnover increased by 62%. In 2019, FDJ will implement an ambitious action plan aimed at achieving carbon neutrality this year and reduce its carbon emissions by 20% by 2025.

 

• Contribution of € 5.4 billion to GDP, + 2.9% vs. 2017; 52,500 jobs created or sustained

For the third consecutive year, the BIPE evaluated the economic and social contribution of the FDJ Group in France **.

In 2018, the contribution to the national wealth of FDJ amounted to € 5.4 billion, + 2.9% vs. 2017, representing 0.2% of the Gross Domestic Product. The economic training effect induced by FDJ is close to that of the construction sector ***.

In terms of jobs, FDJ has created or maintained 52,500 jobs in France. Between 2016 and 2018, the average annual growth of jobs created or sustained was + 0.7%.

The contribution of FDJ is notable for two ecosystems:

• The State, with 3.6 billion euros of total contribution to the state budget, up + 3.3% vs. 2017, including € 3.5 billion in public finance and € 0.1 billion in dividends;
• Local commerce , with € 785 million contribution. FDJ created or maintained 20,350 jobs in this network in 2018. It contributes 20% of the jobs created or sustained in the bar-tabac-presse sector.With 1 point of sale accessible in less than 10 minutes, in urban foot or rural by car, FDJ has with its 30,000 points of sale the 1 ^st network of proximity present in more than 10 000 municipalities.

FDJ supports other ecosystems, resulting in the redistribution of € 160 million in 2018 and the creation or sustainability of 6,200 jobs (ie 12% of total employment attributable to FDJ):

• French sports , both professional and amateur, through the action of the National Center for the Development of Sport (CNDS) and the sports partnerships established by FDJ, for € 116 million;
• French heritage in danger , thanks to the funds donated to the Heritage Foundation during Operation 2018 Mission Heritage Games. Thanks to the € 22m raised in 2018, matched by the State, more than 230 sites have begun to benefit from financing;
• The social action and the memorial contribution of its founding shareholders in the world of fighters : the Union of the Wounded of the Face and the Head and the National Federation André Maginot, thanks to the 18 M € of dividends received in 2018 which contribute to more than 90% of their budgets;
• The action of its Foundation, which is committed to promoting equal opportunities by supporting more than 100 national and local associations with a 2018 budget of € 4 million.

________________________________________________________________________________________________________

* This commitment is taken in addition to the strict respect of the obligation of law to gambling operators and that any commercial communication in their favor must be accompanied by a warning message against excessive gambling or gambling. pathological, as well as a mention of the telephone number of information and assistance made available to the problematic players (article 7 of the law n ° 2010-476 of May 12, 2010)

** The methodology of the BIPE study incorporates the international standards for the evaluation of economic impacts used by major bodies (UN, European Commission ...). It evaluates the direct, indirect, induced and catalytic effects for calculating the contribution of FDJ to wealth (Gross Domestic Product) and employment in France.

*** The induced economic training effect corresponds to the multiplier effect between the added value directly generated by FDJ and that induced on the French territory via its various contributions.

About the FDJ group:

National Lottery and French leader in gambling, 2 ^nd lottery in Europe and 4 ^th in the world, FDJ offers in point of sale and on-line a public offer, fun, responsible and secure of more than 90 games: lottery games - Draw (Lotto, EuroMillions ...) and Scratching (Millionaire, Cash, Mission Heritage games, Astro, Végas, ...) - and sports betting (ParionsSport).

FDJ's performance is driven by a portfolio of iconic, historic and recent brands, the leading retail network in France, a growing market, recurring investments and an innovation strategy to increase the attractiveness of its offering and of its distribution with an enriched gaming experience.

In 2018, with 25 million players, with more than 30,000 points of sale and 2,200 employees, FDJ collected € 15.8 billion in bets, 15% digitized, distributed € 10.7 billion to its players, contributed € 3.6 billion in the state budget and remunerated its retail network for € 0.8 billion.

Annex: Summary Financial Data

In € million	2017	2018	Var.
updates	15,144	15,817	+ 4.4%
Player gains	10,122	10,697	+ 5.7%
Return rate to players	66.8%	67.6%	+0.8 pt
Gross product of games *	5,022	5,120	+ 1.9%
PBJ in% of bets	33.2%	32.4%	-0.8 pt
Net product of games **	1,727	1,774	+ 2.7%
NPC in% of bets	11.4%	11.2%	-0.2 pt
Turnover ***	1,762	1,803	+ 2.3%
EBITDA ****	316	315	-
Depreciation and amortization	54	64	+ 17%
current operating income Operating income	261	251	-3.9%
Operating income	258	257	-
Net profit	181	170	-5.8%
Net cash from operating activities	257	227
Intangible and tangible investments	89	93	+ 4.9%
Net cash *****	808	841
Equity	520	564

* Gross product of games: bets minus players' winnings

** Net gambling revenue: gross proceeds from games minus public levies

*** Turnover: net proceeds from games and proceeds from other activities

**** EBITDA: current operating income restated for depreciation and amortization.

***** Cash net of financial liabilities