Lottomatica Grp Spa U/Adr

Good morning, this is the Chorus Call Conference Operator. Welcome and thank you for joining the Lotomatica Group's 9-month 2026 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions by pressing star and 1 at any time. Should anyone need assistance during the conference call, they may signal an operator by pressing star and 0 on their telephone. At this time, I would like to turn the conference over to Mr. Mirko Senesi, Investor Relations Director of Lotomatica. Please go ahead, sir.

Thanks, operator, and good morning to everyone. Welcome to L'Automatica Q3 2026 result 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, and good morning. Let's start from page number two of the presentation, another strong quarter, revenues are up 12% on a normalized basis and EBITDA is up 17%. Of course, as you know, the quarter has seen unfavorable payout across Europe, so the reporting numbers are lower for the impact of the payout. But when we go and look at the dynamics by business, online is up a very strong 19% in terms of revenues. Post franchise is in the same range. Gaming franchise continues to be a very low single-digit decrease. And so this explains the total revenues dynamics. Please note that online is up 13% in any case despite the unfavorable payout. Next page in the deck, page number 3, you can see that when you open online in its components of iGaming, iSports and then you also have a look at Sports Franchise, The dynamics are the same for every sub-segment, so very healthy growth for each business line. And this goes together, goes along with page number 4 of the deck. Very good performance in terms of market share. We achieved record high market share in September on Total Online and also for sports where we also score the highest quarter ever. Page number five of the deck, we continue to see the same dynamics in the competitive environment with the tails that continue to shrink. This has been going on for a while. The dynamics are Unchanged. This tells you that the results of the quarter are backed by very strong underlying business dynamics. The market is there, the performance is there, and the competitive environment continues to go in the same directions that we've seen in the last several quarters. Now, going in page number six of the presentation and also the following, there's a few slides which talk about Lottomatica, but you can also see a reference to SIRSA as we presented the deal Page 6 is about our market share growth since we started really focusing on online. We started in 2016 with 1% market share. The growth of the market share since then has been for sure due to our capacity to roll up The market, and you see the M&A component, we've put together brands, we've integrated them, and that's the M&A component. But for every point of market share that we bought, we've achieved 1.3 points of market share in terms of organic improvements. So there's a lot that you can do in a fragmented market when you roll up but also when you work on the right tech and on the right product and on the right digital marketing activities with the right tools to improve your competitive position the other the following two or three pages are so page number seven 8 and 9 of the presentation, we are page number 7 now, we usually put pages on tech and product because this is at the core of what we do and it's one of the most important competitive levers that we have in online and sports. Again, this is talking about what we do today in L'Automatica, but this also gives you a hint of what we want to do potentially in Sirsa and what we are capable of doing. Page number 7 shows you what we do on sports betting and one of the most important assets that we have in sports betting, which is a deep betting intelligence platform, which is a 100% proprietary technology asset, through which we basically control the entire value chain. We make the pricing, we make the odds, from the event to the odds, it says on the slide. basically it's the internalization of all the data the models the capacity to do smart pricing and to tailor the odds and it's not working on a you know minor amount of our volumes in 2026 this has been on give or take half of our volumes and on the most important markets that we have so we have the capacity of fully controlling the betting value chain both for retail and online and basically making the price and managing the risk. You can see more detail on page number 8. What's the summary of that? There's a lot of information here. How does this compare with just buying the odds from a standard provider? You can find many good ones out there and we integrate very good ones in our platforms. But what's the difference of having this type of technology in-house? Well, the first point is that you can differentiate your offer and that you make the pricing on the basis of your data, which are a considerable part of the market, so the pricing that you make is very much tailored to the consumer base that you target. This gives you the proprietary data, gives you a great advantage in terms of competition. Anyone can come up with smart models, but not anyone can train them on the data that we need them to operate on. So differentiate work on the right data for our customers cost, because we paid zero fees on these. All the value is kept internally. and you are fast and strategically independent. This is not only a bottom line lever. It doesn't just operate on cost. It operates on the top line. Next, page number nine of the presentation, we've talked several times about the Lottomatica Core, this layer which is above. The concept is simplified here and you have a few data points which I think are also very interesting. The whole target, the whole objective of that is going from targeting everyone to targeting segments to customizing the offering and the way you propose the offer to the one, to the single player. And we've talked at length about this in the past, but just a couple of data, the improvement of the click-through rate, the more near to the economic drivers of the performance, you can see the impact that this has had in the last 2-3 years on the ARPU as a percentage, our ARPU as compared to the market. We've been able to work on the ARPU of the players much more effectively than the rest of the market. And why I'm referring to Searston, because as we discussed with many of you, This is going to be an important focus of our activities in the future down there. Coming to CIRSA, where do we stand? Integration. We want to be ready to start executing from day one, from the closing. as we've always done. The integration workstreams are already up and running with our colleagues in CIRSA. The chemistry is very good, the teams are working very well together. There are four workstreams. The synergies, the cost synergies that we have to achieve. The online boost, which is at the core of our investment thesis. of course, integration of the Italian component of the business, which is not the key of the deal. It's relatively small, but still it's something that we have to do. And then, of course, the corporate integration. The teams are working together. We are actively planning every single detail that is possible to plan at this stage in respect of applicable laws. The target again is to be ready to start execution the day we close. Also because everything is going according to plans. Financing has been secured, regulatory approvals are in progress. We have our EGM on the 23rd and CISAS called its EGM on November 30 and so we confirm that We expect to close in Q2 2027. Now, Lorenzo, the floor is yours.