Lottomatica Grp Spa U/Adr

Good morning. This is the Chorus Call Conference Operator. Welcome and thank you for joining the Lotomatica Group's full year 2025 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Mirko Senesi, Head of Investor Relations of Lottomatica. Please go ahead, sir.

Thanks, operator, and good morning to everyone. Welcome to Lottomatica Fulia Results presentation. I'm here today with our CEO, Guglielmo Angelozzi, and our CFO, Lorenzo Vallanca. Now the floor directly to Guglielmo for the presentation. Guglielmo, please.

Thank you, Mirko. Good morning to everybody. We start from page three of the deck. Very happy to share with you that we had another very solid print for 2025. EBITDA grossed 21% year-on-year and adjusted net profit 45%. We have returned a significant amount of capital to our shareholders, underpinned by our solid cash flow generation in our balance sheet capacity, 375 million euros or 1.6 euros per share divided between dividends and buyback. The net leverage is at 2.4 times in line with 2024 because we use them well within our financial policy as we've used, as I said, our cash flow generation balance sheet capacity for the buyback. Without the buyback, this would have been two times or at the very low end of the financial policy. Page number four, what are the key milestones that we've achieved in 2025? The PWO integration... First of all, it's been successfully completed. We've implemented shy of 90 million Euro synergies, 34% more than what originally announced. The full rate will be in effect in 2026. And PwO has gone back to growth after reaching, as we said, the lowest peak at the end of the migration. Very good on the market shares also. We gained 1.2 points as a group, including historical brands and PwO, which you will see is more than 50% of the shares lost by the tails, and we reached 31.3% in Q4 2024, and we think there is more room to go in 2026. The process for the renewal of the new online concession has been completed. New concession are active since November 13. There's a few more. important steps, so the certification of the new systems and the go-live of the new regulation on compliance which is expected to happen in the summer of 26, but everything is on track. We optimized our cost of debt with a successful refinancing in April. More than 50% of our debt was refinanced at the time with 24 million euros per annum savings in interest costs. And now we stand at 5.3% total cost of debt, which is 240 bps lower than IPO. Also in terms of governance, since June we are 100% float. We've entered the FTSE meeting in September. Liquidity, including all sources, is now above 50 million euros per day, so 15 times more than the IPO level. And also the independence of the board has been strengthened, and today With new members that have joined after the exit of Apollo, we have 73% of independent directors and have appointed a lead independent director in July. So let's go up page number four of the presentation. This is focused on the market shares. On the left, you can find the legacy brands. The graph, legacy brands means basically everything except PwO, the Planet Twin brand. The graph starts in 2022 because that is the year when we acquired the last asset, which is the last asset before PwO, which is Betflag. So you can see there's been a constant growth of market share on the historical brands, on the legacy brands, and shy of two points also this year. As we had commented in the past on the right graph, you can see the trend line for PwO, so 7.1% at the acquisition, 7.1% at the start of the migration, lowest value at the end of the migration as it is usually, it's already up in the past, 6%, and then relaunch progressing well, 6.3% at the end of the migration. for Q4 2025. So overall, a very good performance, notwithstanding the factoring in the pressure on market share on PWA because of the migration. Let's go to look at some of the competitive dynamics closer. We are page number five of the deck here. So as you can see from the graph on the left, this is the market share of the so-called tail operators, the smaller operators. They were at 16.6% in 2023 and lost a bit of market share, less than a point in 2024. You know, that's a pretty natural trend. But then they lose 2.1 points in 2025 with an acceleration in the last quarter of the year. And as I commented before, we take one, two points, which means basically more than 50% of the loss of basically more than the fair share, which would have been 30%. We are on page 6 of the presentation. I've commented on EBITDA growth and this goes along with significant adjusted net profit growth through the years. You can see that on the graph on the left. We have more than doubled in the last four years the adjusted net profit, which has grown also in the last year 24 to 25 of 45%. But even more important, and these are the drivers behind this growth, that you can find on the right graph of the page. Three quarters of the growth has come from organic growth and optimization projects. So organic growth, meaning the baseline growth of the EBITDA, 86 million. Then you have EBITDA revenues. Then you have 20 million euros coming from the optimization of the financial structure and 48 coming from the projects that we've executed on extracting synergies from the M&A. Only 53 million, so one quart, comes from EBITDA that actually we've paid for. So the accretion is very not only relevant, but it's also very healthy in its composition. Page number seven of the deck. Let's get to the guidance for 2026. We guide towards revenues of 2 billion 390 million euros to 2 billion 460 million euros for 2026. EBITDA will be in the range of 940 to 980 million euros. And CAPEX are in line with basically the previous, pretty much in line with the previous year. So recurring CAPEX between 85 and 90 million euros. and concession capex coming from the mathematics of the concession schemes of 78 million euros per year. In terms of capital returns, the dividend proposal just basically follows, strictly follows our dividend policy, 30% of adjusted net profit, which is 0.44 euros per share or 111 million euros. And we are going to ask the board is requesting an authorization to the AGM to buy back an additional 12.5% of the share capital in the next 18 months, which are the current prices. correspond to circa $700 million in the period 2026-2027, including the shares that we will have bought by the date of the AGM with the share buyback, which is currently in progress. So with this, I leave the floor to Lawrence.