INTRALOT Group
ANNUAL FINANCIAL REPORT
(based on the Article 4 of L.3556/2007)
FOR THE PERIOD ENDED December 31, 2021
ACCORDING TO
INTERNATIONAL FINANCIAL REPORTING STANDARDS
(IFRS)
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
2
Contents
Representation of the Members of the Board of Directors ...................................................................................................................... 4
REPORT OF THE BOARD OF DIRECTORS-INTRALOT GROUP ............................................................................................................... 5
Explanatory Report on Article 4 par. 7 & 8 of L. 3556/2007 ............................................................................................................... 97
CORPORATE GOVERNANCE STATEMENT .................................................................................................................................................... 101
Independent Auditor’s Report ..................................................................................................................................................................................... 144
ANNUAL FINANCIAL STATEMENTS ................................................................................................................................................................ 151
INCOME STATEMENT OF THE GROUP / COMPANY FOR THE YEAR 2021 ....................................................................................... 151
STATEMENT OF COMPREHENSIVE INCOME OF THE GROUP / COMPANY FOR THE YEAR 2021 ........................................... 152
INCOME STATEMENT OF THE GROUP / COMPANY FOR THE 4
th
QUARTER OF 2021 ................................................................ 153
STATEMENT OF COMPREHENSIVE INCOME OF THE GROUP / COMPANY FOR THE 4th QUARTER OF 2021 ................... 154
STATEMENT OF FINANCIAL POSITION OF THE GROUP/COMPANY .................................................................................................. 155
STATEMENT OF CHANGES IN EQUITY OF THE GROUP ......................................................................................................................... 156
STATEMENT OF CHANGES IN EQUITY OF THE COMPANY ................................................................................................................... 157
CASH FLOW STATEMENT OF THE GROUP/COMPANY ............................................................................................................................ 158
1. GENERAL INFORMATION .............................................................................................................................................................................. 159
2. NOTES TO ANNUAL FINANCIAL STATEMENTS ................................................................................................................................. 159
2.1.1 Basis of preparation of the Financial Statements ............................................................................................................. 159
2.1.2 Statement of compliance ............................................................................................................................................................ 160
2.1.3 Financial Statements ..................................................................................................................................................................... 160
2.1.4 Changes in accounting policies ........................................................................................................................................... 161
2.1.5 Basis of Consolidation ............................................................................................................................................................................. 163
2.1.6 Business combination and goodwill .................................................................................................................................................. 164
2.1.7 Foreign Currency Translation .............................................................................................................................................................. 166
2.1.8 Tangible assets .......................................................................................................................................................................................... 167
2.1.9 Borrowing costs ......................................................................................................................................................................................... 168
2.1.10 Investment properties ......................................................................................................................................................................... 168
2.1.11 Intangible assets .................................................................................................................................................................................... 169
2.1.12 Financial instruments .............................................................................................................................................................. 170
2.1.13 Inventories ................................................................................................................................................................................................ 177
2.1.14 Trade and other short-term receivables ....................................................................................................................................... 177
2.1.15 Cash and Cash Equivalents ................................................................................................................................................................ 177
2.1.16 Long Term Liabilities ............................................................................................................................................................................. 177
2.1.17 Provisions and Contingent Liabilities ............................................................................................................................................. 177
2.1.18 Leases ......................................................................................................................................................................................................... 178
2.1.19 Share capital – Treasury shares ...................................................................................................................................................... 179
2.1.20 Share Based Payments ........................................................................................................................................................................ 179
2.1.21 Staff Retirement Indemnities ............................................................................................................................................................ 179
2.1.22 State Insurance Programs .................................................................................................................................................................. 180
2.1.23 Revenue recognition ............................................................................................................................................................................. 180
2.1.24 Taxes ........................................................................................................................................................................................................... 182
2.1.25 Government grants ............................................................................................................................................................................... 183
2.1.26 Earnings per share ................................................................................................................................................................................ 183
2.1.27 EBITDA & EBIT ........................................................................................................................................................................................ 183
2.1.28 Significant accounting judgments, estimates and assumptions ......................................................................................... 184
2.2 INFORMATION PER SEGMENT ........................................................................................................................................................ 188
2.3 OTHER OPERATING INCOME ........................................................................................................................................................... 191
2.4 STAFF COSTS ......................................................................................................................................................................................... 191
2.5 DEPRECIATION AND AMORTIZATION ......................................................................................................................................... 192
2.6 EXPENSES BY NATURE....................................................................................................................................................................... 192
2.7 INCOME / (EXPENSES) FROM PARTICIPATIONS AND INVESTMENTS ........................................................................... 193
2.8 GAIN/(LOSSES) FROM ASSETS DISPOSAL, IMPAIRMENT LOSS & WRITE-OFF OF ASSETS ................................ 193
2.9 OTHER OPERATING EXPENSES ...................................................................................................................................................... 193
2.10 INTEREST AND SIMILAR EXPENSES / INTEREST AND SIMILAR INCOME .............................................................. 194
2.11 EXCHANGE DIFFERENCES .......................................................................................................................................................... 194
2.12 INCOME TAXES ................................................................................................................................................................................ 194
2.13 EARNINGS / (LOSSES) PER SHARE ........................................................................................................................................ 196
2.14 TANGIBLE FIXED ASSETS ........................................................................................................................................................... 198
2.15 INVESTMENT PROPERTIES ......................................................................................................................................................... 202
2.16 INTANGIBLE ASSETS .................................................................................................................................................................... 203
2.17 INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES .................................................................. 208
2.18 OTHER FINANCIAL ASSETS ........................................................................................................................................................ 209
2.19 OTHER LONG-TERM RECEIVABLES ......................................................................................................................................... 210
2.20 TRADE AND OTHER SHORT-TERM RECEIVABLES ............................................................................................................. 210
2.21 INVENTORIES ................................................................................................................................................................................... 212
2.22 CASH AND CASH EQUIVALENTS .............................................................................................................................................. 212
2.23 SHARE CAPITAL, TREASURY SHARES AND RESERVES ................................................................................................... 213
2.24 DIVIDENDS ....................................................................................................................................................................................... 218
2.25 DEBT .................................................................................................................................................................................................... 218
2.26 STAFF RETIREMENT INDEMNITIES ......................................................................................................................................... 224
2.27 SHARED BASED BENEFITS ......................................................................................................................................................... 226
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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2.28 OTHER LONG-TERM LIABILITIES ............................................................................................................................................. 226
2.29 TRADE AND OTHER CURRENT LIABILITES .......................................................................................................................... 226
2.30 FINANCIAL ASSETS AND LIABILITIES ................................................................................................................................... 226
2.31 SUPPLEMENTARY INFORMATION ............................................................................................................................................. 233
A. BUSINESS COMBINATION AND METHOD OF CONSOLIDATION .................................................................................................. 233
III. Acquisitions ..................................................................................................................................................................................................... 236
IV. New Companies of the Group .................................................................................................................................................................. 236
V. Changes in ownership percentage / Consolidation method change .......................................................................................... 236
VI. Subsidiaries’ Share Capital Increase ..................................................................................................................................................... 236
VII. Strike off - Disposal of Group Companies ......................................................................................................................................... 237
VIII. Discontinued Operations ......................................................................................................................................................................... 237
IX. Companies merge ......................................................................................................................................................................................... 242
X. Material partly owned subsidiaries .......................................................................................................................................................... 242
XI. Investments in companies consolidated with the equity method ............................................................................................. 246
B. REAL LIENS ........................................................................................................................................................................................................ 248
C. PROVISIONS ..................................................................................................................................................................................................... 249
D. PERSONNEL EMPLOYED ............................................................................................................................................................................... 249
E. RELATED PARTY DISCLOSURES ................................................................................................................................................................ 250
2.32 CONTINGENT LIABILITIES, ASSETS AND COMMITMENTS ............................................................................................ 250
A. LITIGATION CASES ............................................................................................................................................................................. 250
B. FISCAL YEARS UNAUDITED BY THE TAX AUTHORITIES ................................................................................................................... 255
Ι) COMPANY AND SUBSIDIARIES .................................................................................................................................................................. 255
ΙΙ) ASSOCIATE COMPANIES & JOINT VENTURES ................................................................................................................................... 257
C. COMMITMENTS ...................................................................................................................................................................................... 257
I) Guarantees ................................................................................................................................................................................................... 257
II) Other commitments ....................................................................................................................................................................................... 258
2.33 FINANCIAL RISK MANAGEMENT ............................................................................................................................................... 258
2.34 APPLICATION OF IAS 29 “FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES” .......................... 264
2.35 COMPARABLES ................................................................................................................................................................................. 264
2.36 SIGNIFICANT FLUCTUATIONS, RECLASSIFICATIONS & REVERSALS ....................................................................... 265
2.37 MACROECONOMIC ENVIRONMENT ..................................................................................................................................................... 267
2.38 SUBSEQUENT EVENTS.................................................................................................................................................................. 267
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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Representation of the Members of the Board of Directors
(according to article 4 par. 2 of L.3556/2007)
The
1. Sokratis P. Kokkalis, Chairman of the Board of Directors and Group CEO
2. Chrysostomos D. Sfatos, Member of the Board of Directors and Deputy Group CEO
3. Ioannis K. Tsoumas, Member of the Board of Directors
CERTIFY THAT
As far as we know:
a. The enclosed financial statements of the company “INTRALOT S.A” for the year 1 January 2021 to 31
December 2021, drawn up in accordance with the applicable accounting standards, reflect in true
manner the assets and liabilities, equity and results of the Company and the companies included in the
consolidated financial statements taken as a total.
b. The attached Board of Directors’ annual report truly presents the course, the performance and the
position of the Company and the companies included in the consolidated financial statements taken as
a total, including the description of the most important risks and uncertainties they are facing.
c. The attached Financial Statements are those approved by the Board of Directors of “INTRALOT S.A.”
on April 8, 2022 and have been published to the electronic address www.intralot.com.
Peania, April 8,2022
The designees
Chrysostomos D. Sfatos
Member of the Board and
Deputy Group CEO
Ioannis K. Tsoumas
Member of the Board
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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REPORT OF THE BOARD OF DIRECTORS-INTRALOT GROUP
TO THE ANNUAL GENERAL ASSEMBLY OF THE SHAREHOLDERS FOR THE FISCAL YEAR
1/1/2021-31/12/2021
Dear Shareholders,
In the past year INTRALOT succeeded in one of its key priorities, the optimization of its Capital Structure
and the deleveraging of its balance sheet through negotiations with Noteholders of 2021 and 2024
Notes. The completion of this process in August of 2021 ended with two major achievements, the
refinancing of its Notes due September 2021 extending substantially the maturity, while at the same
time leading to a material relief of Group’s debt liabilities, which have been reduced by €163 million.
These targets were succeeded via two Exchange Offers, a debt-to-debt exchange in which US based
Intralot Inc. issued new Notes due September 2025 in exchange of the old ones due September 2021
issued by Intralot Capital Luxembοurg with a discount of 18% to the original issue’s nominal value and
a partial debt-to-equity of 2024 Notes with a minority participation of 2024 Noteholders in the share
capital of Intralot US Securities BV (indirect parent of Intralot Inc. US). This new capital structure
significantly improves the position of the Group, subsequently depicted also in the upgrade of
INTRALOT’s Corporate Family Rating (CFR) by rating agencies post transaction, allowing the Group to
take advantage of new opportunities, while continuing its strategy of placing emphasis on strategic
developed markets. Furthermore, the entry of significant institutional investors in the share capital of
the parent of our US subsidiary enhances this company’s capabilities in a very promising and competitive
market.
Previous year, 2021 was also marked by the rebound of INTRALOT’s business from COVID-19 pandemic,
which disrupted severely the majority of business activities including, sports, leisure and entertainment
in 2020. We saw our activities returning gradually back to normal in all areas of the world mainly in
Australia, Malta, Morocco and South America after strict and lengthy lockdowns and the absence of
sporting events during the pandemic period. What we also noticed, however was a shift towards more
traditional lottery products that supported the performance of our business especially in the US. The
strong results in the Lottery areas were further supported by the performance of our new Sports Betting
projects in that market based on INTRALOT’s novel Orion Sports Betting platform.
Operationally, we continued our cost optimization program across the Group, that also supported
substantially our financial results, depicted in a healthy operational performance for 2021.
Consistent with our commitment for focus and disengagement from non-core markets, we completed
the sale of our 20% stake in Intralot de Peru SAC, securing at the same time a three-year extension of
our current contract with Intralot de Peru SAC through 2024, to continue to provide our gaming
technology and support services. In addition to this, we completed the sale of the 80% of our voting
capital in Intralot do Brasil.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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Commercially, we extended key contracts such as OPAP S.A., the leading Greek gaming operator, for
one more year until July 2024.
As we look towards the future, we would like to thank all of our stakeholders for their trust in our Group
and to reassure them that our unwavering commitment to ethics, transparency, integrity, and
responsible gaming will continue to guide our efforts to achieve sustainable and responsible growth.
Regarding the financial results of INTRALOT Group for 2021, on a continuing-basis, revenue recorded
an increase of 20,0%, while operating performance as measured via our earnings before interest, tax,
depreciation and amortization (EBITDA), amounted to €110,4 million, exhibiting an increase of 66,9%.
The main drivers behind our top-line performance can be attributed to the strong organic growth that
our key markets experienced, along with the fainted impact of COVID-19. US operations remain the
dominant force behind our revenue growth, signaling that our Group is well positioned to capitalize on
its existing US contracts. Strong growth has been achieved also by our operations in Malta, Argentina,
Australia, Turkey and Morocco, regions that we believe are close to full recovery from the COVID-19
disruptions. From an EBITDA performance perspective, we managed to sustain our cost containment
initiatives and further boost our operating profitability margins. On top of the above, our earnings before
taxes (EBT) captured a one-off gain from the successful optimization of our capital structure amounted
to €88,5 million. As regards to the parent company results, turnover decreased by 8,1% to €43,8 million
in 2021, while earnings after tax amounted to €27,8 million, from €-40,5 million in 2020.
In 2021, group Operating Cash-flow from total operations posted a increase and stood at €107,6 million,
versus €44,5 million in 2020. Excluding the operating cash-flow contribution of our discontinued
operations (mainly Bulgaria and Brazil), the cash-flow from operating activities is higher by €64,8m vs.
2020 and is largely driven by the higher recorded EBITDA y-o-y from continuing operations (€+44,2
million) and the positive variance in Income Tax flows (€+18,3 million), attributed to Income Tax returns
during the current period vs. payments in 2020.
Net Debt, as of December 31st, 2021, stood at €497,2 million, decreased by €153,9 million compared
to December 31st, 2020 (€651,1 million). The Net Debt movement was impacted primarily by the
successful deleverage (€-162,5 million) following the completion of the agreement with our noteholders
for balance sheet optimization purposes, the normal course of business (€-33,3 million), the Net
Investments (€-10,3 million, referring mainly to Intralot de Peru SAC sale impact), as well as an income
tax return in the first quarter of 2021 related to the Parent Company tax audit payments of the previous
periods (€-5,2 million). The Net Debt decrease was only partially offset by the payments towards the
Capital Structure Optimization (€+33,5 million, incl. the redemption fees recorded in interest and similar
charges paid), other debt related movements (€+16,0 million), and the investments towards the growth
of our business, mainly for R&D and our projects in the US and Croatia (€+7,8 million).
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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WHO WE ARE
Company Profile
INTRALOT is a public listed company established in 1992, with €0,4 billion turnover and a global
workforce of approximately 1.800 employees in 2021. Being a technology-driven corporation uniquely
positioned to offer to lottery and gaming organizations across geographies market-proven flexible,
reliable and secure gaming products and services, the Company is a leading gaming solutions supplier
and operator, active in 41 regulated jurisdictions around the globe. Currently, INTRALOT operates
approximately 300.000 of its proprietary terminals worldwide.
Based on its strategic approach “i-shapes the future”, INTRALOT is committed to Modernize Lotteries
in a Digital World by delivering innovative lottery and sports betting solutions, shaping the future of
gaming. The company invests in developing next-generation products, focused on players’ experience,
the trends of the world-wide gaming ecosystem, and the efficiency of its operators to provide engaging
responsible entertainment for their players through all distribution channels and across all verticals
(Lottery, Betting, Interactive, VLTs), while driving its customers’ growth for higher contribution to good
causes in their communities.
As a member of the UN Global Compact, INTRALOT is a global corporate citizen committed to sustainable
development and is an active proponent of the principles of responsible gaming, being awarded with the
WLA Responsible Gaming Framework Certificate.
The Company maintains the highest industry certifications on quality and safety management systems.
It is the first vendor in the gaming sector certified in 2008 with the WLA SCS:2016 (Security Control
Standard) and it has been certified according to ISO 27001:2013 for its Information Security
Management Systems. Both certifications cover INTRALOT Headquarters and 23 additional subsidiaries’
operations around the world. Furthermore, INTRALOT has been certified according to ISO 9001:2015
(Quality Management Systems), ISO 14001:2015 (Environmental Management Systems), ISO
20000:2018 (IT Service Management Systems), ISO 29993:2017 (Learning Services Outside Formal
Education) and ISO 37001:2016 (Anti-Bribery Management Systems).
INTRALOT works with many external stakeholders among them the major international industry
associations. Each entity is a valued partner that supports the company’s efforts to contribute decisively
to the future developments of the gaming market. Specifically, INTRALOT is an Associate Member of
the World Lottery Association, an Associate Member of the European Lotteries, a Level I partner of the
North American Association of State & Provincial Lotteries (NASPL), a Member and Gold Sponsor of the
Asia Pacific Lottery Association (APLA), a Member and Silver Sponsor of the Gaming Standards
Association and an Associate Member of the Global Lottery Monitoring System (GLMS), the global lottery
alliance against sports competition manipulation.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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Recent Company Developments
Projects / Significant Events
On January 14, 2021 INTRALOT announced a binding lock-up agreement with key noteholders in support
of the proposed capital structure optimization transactions that will address its upcoming maturities and
materially deleverage its balance sheet.
Also, on January 14, 2021 the company announced that OPAP exercised its two-year extension option
of the contract with INTRALOT for the continuation of the collaboration of the two companies in the field
of numerical lotteries and services from August 2021 to July 2023.
On January 22, 2021 INTRALOT announced the extension of the deadline for accession to lock-up
agreement with the noteholders.
On February 2, 2021 INTRALOT with a new press release provided information regarding the lock-up
agreement, announcing the agreement with 82,62% of the noteholders, and stating that it will provide
new information regarding the implementation of the proposed transaction.
On March 23, 2021 INTRALOT announced the amendment of the contract of INTRALOT Maroc, a
subsidiary of the INTRALOT Group acting as games operator in Morocco, with La Marocaine Des Jeux et
des Sports (MDJS), a state lottery offering sports betting and other games of chance in Morocco, which
was signed in June 2019. According to this amendment, counterparties agree to reduce the duration of
the contract, which was initially effective for an 8-year term, ending 31.12.2022. This amendment was
designed to enhance resilience in the context of the COVID-19 pandemic repercussions on the overall
lottery market. INTRALOT Maroc, which has been a successful partner of MDJS since 2010, will continue
to support MDJS with the overall management and operation of its lottery, sports betting, and other
games activities.
On April 14, 2021 INTRALOT announced that it completed the sale of 500.000 own shares, or 0,32% of
its total share capital, with an average selling price of €0,17 per share and a total value of €85.000,00.
INTRALOT after this transaction holds 8.700.033 own shares, which represent 5,54% of its total share
capital.
On April 20, 2021 INTRALOT informed the investing community that after the completion of the tax
compliance audit of INTRALOT for the fiscal year 2018 carried out by the Independent Certified Auditors-
Accountants, pursuant to article 65A of the Law 4174/2013, a Tax Compliance Report has been issued
with unqualified opinion.
On May 26, 2021 INTRALOT announced that its subsidiary in The Netherlands INTRALOT BENELUX BV,
in co-operation with the Nederlandse Loterij, completed the transition of the operator’s full gaming
portfolio enabled by the innovative LotosX platform. Lottery Draw-Based games, Scratch Cards and
Passives, as well as the back-office operations are now live in The Netherlands through LotosX.
Additionally, INTRALOT has rolled out 4.300 Photon terminals along with its robust signage solution
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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empowering further the retail channel of Nederlandse Loterij’s Lottery games and Sports Betting
offering.
On June 1, 2021 INTRALOT announced that in the period from 12.05.2021 to 31.05.2021 it proceeded
with a sale of 275.097 own shares, or 0,18% of its total share capital, with an average selling price of
€0,1505 per share and a total value of €41.392,04. Therefore, INTRALOT holds 8.424.936 own shares,
which represent 5,37% of its total share capital.
On June 28, 2021 INTRALOT provided an update information regarding the lock-up agreement,
announcing the conclusion of a contract with the majority participating noteholders to amend specific
terms of the lock-up agreement, including confirmation for the issuance of new secured notes (SSNs).
On July 1, 2021 INTRALOT provided an update on the Lock-up agreement and exchange offer process.
On July 27, 2021 INTRALOT notified the approval from Athens Stock Exchange of the cancellation
4.700.000 own registered shares with the amendment of art 5 of the Company’s Articles of Association.
As a result of the cancellation, from August 2,2021 the Company’s share capital amounts to
€45.678.516,30 and its divided into 152.261.721 common registered shares, with a nominal value of
€0.30 each. Therefore, INTRALOT holds 3.724.936 own shares, which represent 2,45% of its total share
capital.
On July 30, 2021 INTRALOT announced the expiration of the Exchange Offers at 11:59 pm N.Y. time on
29 July2021.
In relation to the 2021 Exchange Offer, as 98,94% of the aggregate principal amount of 2021 Notes
outstanding (excluding any 2021 Notes held by Intralot Capital Luxembourg S.A. and its affiliates) are
validly tendered by holders for exchange in the 2021 Exchange Offer, the minimum acceptance condition
is met as at the expiration deadline.
In relation to the 2024 Exchange Offer, as €118.240.000 of the aggregate principal amount of 2024
Notes outstanding (excluding any 2024 Notes held by Intralot Global Holdings B.V. and its affiliates) are
validly tendered by holders in the 2024 Notes Exchange Offer, the minimum acceptance condition is
met as at the expiration deadline.
On August 3, 2021 INTRALOT announced that on 2 August 2021 the United States District Court for the
Southern District of New York denied the application filed on 29 July 2021 by certain funds that claim
to hold 3,5% to 4,0% of the 2024 Notes for a temporary restraining order in relation to the Exchange
Offers.
On August 5, 2021 INTRALOT announced the completion of the agreement with Noteholders, with the
issuance of new notes and total deleverage of €163 million. Specifically:
1. On August 3, 2021, New Notes with a nominal value of $242.111.911 due September 2025 were
issued by US based Intralot, Inc., in exchange for existing Notes maturing in September 2021 with
nominal value of €247.471.724,07 (corresponding to an 18% discount), which were then cancelled.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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2. Transfer of shares from Intralot Global Holdings B.V., amounting to 34,27% of the share capital of
Intralot US Securities B.V. (indirect parent of Intralot, Inc.), to the holders of existing 2024 Notes with
a nominal value of €118.240.000 who participated in the exchange. Following the above procedure,
these Notes came to the possession of Intralot Global Holdings B.V. Intralot retains control of 65,73%
of Intralot, Inc. and the management of the company.
On December 2, 2021 INTRALOT announced the extension of cooperation with OPAP S.A., the leading
Greek gaming operator, for one additional year, from 31st of July 2023 to 31st of July 2024 in the field
of numerical lottery products and services.
M&A Activity
On February 8, 2021 INTRALOT announced that it has reached a binding agreement with Nexus Group
in Peru to sell its entire stake of 20% in Intralot de Peru SAC, an associate of INTRALOT Group, which
is consolidated through the Equity method, for a cash consideration of US$21 million (twenty-one million
US$). In addition, the Company has signed a three-year extension of its current contract with Intralot
de Peru SAC through 2024, to continue to provide its gaming technology and support services.
On February 24, 2021 INTRALOT informed the investors community about the completion of the sale of
its entire stake of 20% in Intralot de Peru SAC to Nexus Group, with the net cash consideration, after
taxes and transaction expenses, amounting to USD 16,2 million.
On May 14, 2021 INTRALOT announced that it has reached a binding agreement with “SAGA
CONSULTORIA E REPRESENTAÇÕES COMERCIAIS E EMPRESARIAIS” (“SAGA”) in Brazil to sell its entire
stake in “Intralot do Brasil Comércio de Equipamentos e Programas de Computador LTDA” (“Intralot do
Brasil”), representing 80% of the company’s voting capital. SAGA is the only other shareholder of
Intralot do Brasil holding 20% of the company. INTRALOT will continue to provide its gaming technology
to Intralot do Brasil following closing of the transaction. The total cash consideration for the stake sale
amounts to €700 thousand (seven hundred thousand EUR). Intralot do Brasil contributed 0,5% of
Intralot Group EBITDA in 2020.
On June 18, 2021 INTRALOT informed the investors community about the completion of the sale of its
entire stake of 80% in Intralot do Brazil to SAGA, with the net cash consideration, amounting to
€700.000 (seven hundred thousand EUR).
Organizational Changes
On January 19, 2021 INTRALOT announced the recomposition of its Board of Directors into a Body as
follows:
1. Sokratis P. Kokkalis, Chairman and CEO, Executive member
2. Constantinos G. Antonopoulos, Vice- Chairman, Non-Executive member
3. Chrysostomos D. Sfatos, Deputy CEO, Executive member
4. Nikolaos I. Nikolakopoulos, Deputy CEO, Executive member
5. Fotis L. Konstantellos, Deputy CEO, Executive member
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
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6. Alexandros-Stergios N. Manos, Non-Executive member
7. Ioannis K. Tsoumas, Independent Non-Executive member
8. Anastasios M. Tsoufis, Independent Non-Executive member
9. Ioannis P. Tsoukaridis, Independent Non-Executive member
The above recomposition of the Board of Directors took place following the resignation of Mr. Christos
Dimitriadis from his duties as a non-executive member of the Board of Directors. The other members
of the Board of Directors continue the management and representation of the company without the
replacement of the resigned member according to par. 2 of article 82 of Law 4548/2018 and in
accordance with the relevant provision of the Company's Articles of Association. It is noted that the
provisions of article 3 of Law 3016/2002 regarding the number of non-executive and independent
members of the Board of Directors are still being met. The Board of Directors of INTRALOT has been
elected by the Extraordinary General Meeting of the Shareholders with a six-year term, as from
17.12.2020.
On June 30, 2021 INTRALOT announced the election of its new Board of Directors, according to the
decisions of the Ordinary General Meeting dated 29th of June 2021, and formed into a body as follows:
1. Sokratis P. Kokkalis, Chairman and CEO, Executive member
2. Constantinos G. Antonopoulos, Vice- Chairman, Non-Executive member
3. Chrysostomos D. Sfatos, Deputy CEO, Executive member
4. Nikolaos I. Nikolakopoulos, Deputy CEO, Executive member
5. Fotis L. Konstantellos, Deputy CEO, Executive member
6. Alexandros-Stergios N. Manos, Non-Executive member
7. Ioannis K. Tsoumas, Independent Non-Executive member
8. Adamantini K. Lazari, Independent Non-Executive member
9. Dionysia D. Xirokosta, Independent Non-Executive member.
Also, based on the decision of the Ordinary General Meeting dated 29.06.2021, it was appointed the
Audit Committee to be consist of three (3) Independent Non-Executive Members, Messrs. Ioannis
Tsoumas son of Konstantinos, Adamantini Lazari daughter of Konstantinos, and Dionysia Xirokosta
daughter of Dimitrios. The Audit Committee of the Company, during its meeting dated 29.06.2021 was
formed into a body as follows:
1. Ioannis Tsoumas son of Konstantinos, Chairman of the Audit Committee, Independent Non-Executive
Member of the Board,
2. Adamantini Lazari daughter of Konstantinos, Member of the Audit Committee, Independent Non-
Executive Member of the Board,
3. Dionysia Xirokosta daughter of Dimitrios, Member of the Audit Committee, Independent Non-
Executive member of the Board.
On July 12, 2021 INTRALOT notified that an out of stock market transfer of common registered shares
amounts to 20,26% of the total voting rights of the company was made, from Mr. Sokratis P. Kokkalis
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
12
to “ALPHACHOICE SERVICES LIMITED”, company 100% controlled by “K-GENERAL INVESTMENTS &
SYSTEMS SINGLE MEMBER HOLDINGS SOCIETE ANONYME”, company 100% controlled by Mr. Sokratis
P. Kokkalis. Therefore, the percentage of the direct voting rights of the company “ALPHACHOICE
SERVICES LIMITED” on INTRALOT’s shares, amounts to 20,26% of the total share capital and
respectively the percentage of the indirect voting rights of Mr. Sokratis P. Kokkalis amounts to 20,26%.
Significant Events after the end of the FY21 - until the date of the Financial Statements
release
On March 3, 2022, INTRALOT notified that on March 1, 2022 «ALPHACHOICE SERVICES LIMITED» which
is 100% controlled by the Société Anonyme company «Κ-GENERAL INVESTMENTS AND SYSTEMS
SINGLE MEMBER HOLDINGS SOCIÉTÉ ANONYME» (distinctive title “K-SYSTEMS”), sole shareholder of
which is Mr. Sokratis P. Kokkalis, acquired 7.323.920 common registered shares of INTRALOT, with
voting rights. Following that, the percentage of the direct voting rights of the company “ALPHACHOICE
SERVICES LIMITED” on INTRALOT’s shares amounts to 25,695% of the total voting rights of the
company (i.e. 39.123.920 voting rights) against a previous percentage 20,885% of the total voting
rights of the company (i.e. 31.800.000 voting rights), while the percentage of the indirect voting rights
of Mr. Sokratis P. Kokkalis on INTRALOT’s shares amounts to 25,695% of the total voting rights of the
company (i.e. 39.123.920 indirect voting rights) against a previous percentage 20,885% of the total
voting rights of the company (i.e. 31.800.000 indirect voting rights).
Also, on March 3, 2022 INTRALOT notified that the 7.323.920 Company’s common registered shares,
with voting rights, which were acquired by “ALPHACHOICE SERVICES LTD”, legal entity which is affiliated
with and controlled by Mr. Sokratis P. Kokkalis, Chairman of the Board of Directors and CEO of
INTRALOT, were acquired with a total value of 3.442.242,40 Euro.
On March 17, 2022 INTRALOT announced the extension of its current contract of INTRALOT Maroc, a
subsidiary of the INTRALOT Group acting as games operator in Morocco, with La Marocaine Des Jeux et
des Sports (MDJS), a state lottery offering sports betting and other games of chance in Morocco, for
one additional year; the contract is now due to expire on 31.12.2023.
On April 5, 2022 INTRALOT announced the extension of its current contract, with Magnum Corporation
Sdn BhD, a gaming operator pioneer in Malaysia, for another two (2) years; the contract is now due to
expire on 30.06.2024. The current agreement concerns the support of INTRALOT’s core operating
system LOTOS™ O/S including the games software, the On-line Gaming System, and its new generation
terminals Photon.
On April 6, 2022 INTRALOT announced that its U.S. subsidiary, INTRALOT, Inc., has signed a 5-year
extension of its contract with the Wyoming Lottery Corporation. INTRALOT, Inc. will continue to provide
its lottery operating system and services for the operation of the Wyoming Lottery through August of
2029.
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Coronavirus (COVID-19) Pandemic Impact
Despite the serious challenges and uncertainty surrounding COVID-19, 2021 ends on a generally positive
note, as most countries are starting to easing their restrictions signalling that a return to normalcy may
not be far away.
During this phenomenal crisis for a second consecutive year, our top priority was to secure the health
and safety of our team by utilizing all available state measures, and all available technological
advancements for enabling remote work. We are extremely proud of the way our employees responded
and handled all operational tasks without any discounts on the quality of the services delivered to our
customers.
Although gaming business faces challenges related to COVID-19, according to H2 Gambling Capital -
Global Summary Jan ’22, the total global GGR for 2021 had increased by 10,81% compared to a year
ago.
Based on the current performance of our operations and the actions undertaken by most of our
subsidiaries, the EBITDA impact from the pandemic in 2021 is estimated in the vicinity of €3 million.
The extent to which our business will be affected by COVID-19 in the coming quarters will largely depend
on future developments of the pandemic.
Economic Conditions
The energy crisis of 2021 fuelled by the war in Ukraine, shapes a new uncharted era for the global
economic outlook. In addition to the deep economic impact of the COVID-19 pandemic, supply chain
disruptions, inflationary pressures and geopolitical tension around the world are expected to play a
pivotal role on the global business landscape.
Our Group is engaged in the provision of gaming technology related services in Americas, Oceania,
Turkey, and Western Europe, and has no exposure to any direct risks in terms of operations or
dependency from suppliers in Ukraine and Russia. The nature of our worldwide operations, labour-
intensive driven, is not affected by the volatility of commodity prices including energy.
The Management of the Company monitors the geopolitical and economic developments on a constant
basis and is ready to take all the necessary measures for protecting its operations.
Business Activities
INTRALOT is a global leading supplier of integrated gaming systems and services, being well diversified
geographically and with a balanced presence in both developed and developing markets as well as a
leading market position in licensed gaming in most of the highly regulated markets in which we operate.
INTRALOT develops and delivers technology-based products and services for the worldwide gaming,
lottery, sports betting and digital gaming industries. We report our business activities in three business
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divisions – Technology and support services, management contracts and Licensed operations –
representing our different contractual activities.
Value chain of gaming market
The Group, under its contracts and licenses, functions both as a Business to Consumer (“B2C”) operator,
managing frontline customer facing activities, as well as a Business to Business (“B2B”)/Business to
Government (“B2G”) operator, managing the backoffice and support activities of the value chain for
other “B2C” operators, which may be public and/or state owned. In practice, INTRALOT, under its
“B2B/B2G” operator hat, provides hardware and software solutions as well as operational support
services to “B2C” operators. Spanning end to end the gaming value chain offers INTRALOT a distinctive
advantage as it has helped the Group to transfer knowledge and best practices from its “B2C” to
“B2B/B2G” operations and vice versa.
Contractual Arrangements
Typically, “B2B/B2G” and “B2C” engagements are carried out under three types of contractual
arrangements, namely technology contracts, management contracts and licensed operations.
Technology and Support Services Contracts
Our technology and support activities are primarily comprised of the supply of information technology
software, network capabilities and other types of technological support. While we provide the
technology, the operations are managed by another entity, commonly a state or state-licensed gaming
operator. Our contracts in this segment typically include the provision of equipment, software and
maintenance and support services to lottery and gaming organizations pursuant to long-term contracts,
which provide us with stable and recurring revenues. These contracts also include the design,
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development and implementation of custom-made software for the particular products and services
necessary in each jurisdiction and operation. We currently manage 50 individual technology and support
services contracts across 37 jurisdictions. We are a global market leader in gaming IT, and we believe
our technological expertise gives us a competitive advantage worldwide.
Under our technology and support services contracts, we typically earn a fee from the licensed operators,
which are state or state-licensed gaming organizations. This fee is typically based on either (i) a
pre-determined fixed percentage of customer sales (amounts wagered by players) or (ii) a fixed
payment over the duration of the contract in respect of multi-year contracts. In addition, we occasionally
sell technology equipment and relevant services to other lottery and gaming operators.
Revenue under our technology and support services contracts is not subject to payout costs for player
winnings.
Management Contracts
Our management contracts activities include primarily the management of all aspects of a gaming
organization. In addition to the provision of services included under our technology and support services
activity described above, we manage day-to-day operations, marketing services, sales network and risk
management/odds setting for sports betting on behalf of the relevant licensed operator. Under these
contracts, the customer (who is the license holder of the gaming/lottery operation) typically retains
responsibility for certain frontline tasks, as well as the management of retailers, cash management and
game approvals in addition to oversight and regulatory control. We currently operate two (2)
management contracts in two (2) jurisdictions through two (2) subsidiaries. For the case of the newly
established United States Sports Betting revenue stream, this is classified under the management
contracts category for the depiction of the revenue and revenue net of payout, but as there are not
separate contracts for the Sports Betting line (i.e. they are amendments of the existing Lottery
contracts), the contract count presented does not include them as separate contracts.
We typically earn a fee from the licensed operator under our management contracts based on a fixed
percentage of wagers. Revenue under our management contracts are not subject to payout costs for
player winnings.
Licensed Operations
In our licensed operations activities, we are responsible for all aspects of a gaming operation, including
the selection and provision of technology and its ongoing support, as well as the management of the
operations. In addition, because we are typically the direct license holder, we are also responsible for
our relationship with the local regulators. We currently operate under two (2) individual licenses through
a combination of wholly-and partially-owned subsidiaries and joint ventures, across two (2) jurisdictions.
We operate through retail locations and online channels.
The revenue we generate from our licensed operations is based on the total amount of money wagered
by players on various gaming products before payout for players’ winnings.
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The following table summarizes the principal products and services provided in each of our business
activities:
Technology and
Support
Services Contracts
Management Contracts
Licensed Operations
Description
Provision of:
• Central gaming system
• Lottery terminals
• Telecommunications
system/solutions
• Related peripheral
equipment and software
• Implementation
services and/or
• Maintenance and
support services
• Monitoring systems for
VLT operations
Management of all the
aspects of a gaming
operation:
• Provision of technology
solutions as described
under “Technology and
Support Services
Contracts”
• Day-to-day operations
• Marketing services
• Sales network
development and
management and/or
• Risk management/odds
setting for sports
betting games
Ownership of a license to
operate games including:
• Management of services
as described under
“Management
Contracts” and/or
• Provision of technology
solutions as described
under “Technology and
Support Services
Contracts”
Holder of
License
State or state-licensed
operator maintains the
license
State or state-licensed
operator maintains the
license
We or our associates
maintain the license,
which is acquired from a
competent local/state
government authority
Key
Geographies
United States, Greece,
Australia, New Zealand,
Canada, and Argentina
United States, Turkey
Malta and Argentina
Other
Geographies
Croatia, Chile,
Netherlands, Ireland,
Germany, Malaysia,
Taiwan, Philippines and
Peru
Morocco
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Our key geographies set forth in the table above represented 87,7% of our EBITDA in the twelve months
ended December 31, 2021.
The following group of diagrams sets forth our revenue by business activity and region for the twelve
months ended December 31, 2021:
The following view presents our percentage of revenue, revenue net of payout, and EBITDA for the
twelve months ended December 31, 2021:
Game Categories
Our services are offered across 5 distinct gaming market products, namely:
• Lottery Games, include the operation, supply of technology services for numerical and
traditional lottery games, instant tickets and fast draw games in over 50.000 POS with over
270 games across 34 jurisdictions on five continents in each of our three business activities.
• IT Products and Services, include technology and operational services to state and
state-licensed organizations. These services are done on a fixed payment basis rather than
as a percentage of wagers.
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• Sports Betting, includes the operation, supply of technology, bookmaking and risk
management services for 10 jurisdictions, with a capacity of more than 35.000 pre-game
events and 30.000 in play per month and more than 1.000 market types. We believe we
are one of the leading sports betting platform and managed trading services providers in
the state-sponsored gaming sector in the world. In the case of licensed operations, we
primarily operate through agents who bear the cost of operation, while we manage the
sports book.
• Video Lottery Terminals/Amusement with Prizes Machines, include solutions and
services for VLT monitoring, gaming venues and server-based gaming. We operate and/or
service over 80.000 gaming machines in five (5) jurisdictions.
• Racing, includes technology, content and integrated services for pari-mutuel and fixed
odds race betting on horse and dog racing events, as well as virtual games with contracts
in three (3) jurisdictions.
The following diagrams sets forth our revenue by type of game and activity for the twelve months ended
December 31, 2021:
INTRALOT Solutions, Products and Services
Product Strategy
INTRALOT develops and provides an integrated portfolio of innovative gaming technology products and
services including: lottery game engine and central transaction processing systems, point-of-sale
devices, sports betting game engine and risk management tools, digital gaming systems, instant game
management systems, retailer management systems, VLT/AWPs monitoring systems, racing solutions,
and interactive games, as well as operational services for our customers and operations.
In 2021, INTRALOT continued the enhancement of its platforms ecosystem architecture and its product
portfolio. INTRALOT’s approach in continuous improvement is separated in two distinct categories,
namely Product & Technology evolution.
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Product evolution includes developing new games and new game features, enhancement of existing
games and services and enriching tools and functionalities of the gaming platforms. On the other hand,
Technology evolution, part of which was the new microservices architecture initiative, enables us to
effectively compete with other technology providers and meet our customer needs for modularity,
openness and scalability, quick time to market, easy integration and low maintenance cost.
Product & Technology evolution is affected to a great degree from the company's R&D programs,
customer feedback, marketing and general market trends in the gaming industry. Hence, the company’s
ecosystem of holistic omni-channel solutions, that focus on the players’ needs and offer advanced
customer experience, has further evolved in 2021 across all the distribution channels (retail, online,
mobile) and verticals.
Responding to our customers’ challenges and needs, the Company’s product strategy is to accelerate
growth through INTRALOT’s technology and services. INTRALOT solutions play a fundamental role in
our customers’ ability to deliver products and services that boost revenues while protecting players’ and
abiding to regulatory requirements. So our product strategy allows INTRALOT and its customers’ to
achieve:
• Distribution channels’ expansion and easy access to play
• Games Portfolio enhancement and quick time to market
• Offering a variety of marketing activities and promotions
• Real time reporting for well informed decisions & actionable insight
• Agile delivery & technology/product evolution
• Operational excellence & business continuity (high availability, scalability, integrity & more)
Lottery Solution & Lotos X
INTRALOT’s Lottery Solutions, currently deployed in 35 Lottery operations worldwide, are tailored to
suit the needs of regulated Lotteries globally, catering to customers’ needs across all channels and are
an all-in-one solution that fully covers the needs of managing an online and retail Lottery operation.
INTRALOT has become the world leader in Lottery solutions and we can irrevocably state that we offer
one of the most powerful and proven lottery systems in the market today. More specifically, the LOTOS
ecosystem, has been the bedrock for all our customers, offering flexible, secure, mature, and worldwide-
proven solutions. INTRALOT was the first vendor to push well beyond the boundaries of legacy end-to-
end lottery platforms and to move toward a highly modular platform and data architecture. This
fundamental architectural shift enables the Lottery Solution components to be replaced as needed
without affecting other parts of the data architecture and, in this sense allows our solution to fit into
any modern technology and data architecture while guaranteeing its expandability and maintainability
for the long-run.
The strategic choice of the company was not to significantly change the proven functionalities and
features of our Lottery Solution but primarily the architectural, technological and design aspects and
principles which would position our revamped solution at the top of the lottery and gaming industry and
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which would truly be the “enabling technology” on which the next decade of our business expansion can
be based and from which, of course, all our customers would also stand to benefit.
In summary, the Lottery Solution consists of the Lotos X platform, our cutting-edge lottery game
platform for centralized end to end management of all lottery products (numerical, passive or instants)
including Lotos Promotions and Lotos Instant Game Management System. INTRALOT enabling platforms
and touchpoints described below provide for an end-to-end Lottery solution to our customers’ staying
aligned with our commitment for Operational Excellence, Technology Evolution, Integrity and Player
Engagement.
Lotos X
The LOTOS X platform, INTRALOT’s latest Lottery Solution and currently deployed in 4 major European
Lottery operators, provides efficient centralized end to end management of all lottery products across
multiple sales channels. It enables Lottery operators to configure, combine and expand games easily
and effortlessly based on predefined game range parameter configurations. Games management
introduces an evolutionary concept as to the games philosophy in order to minimize the time until the
introduction of the new bet type. Thus, the steps are minimized to guarantee that the games introduction
are as rapid and simple as possible. The operator uses a single interface to manage numerous back-
office functions and changes or functions are distributed in other components, as needed, in a seamless
manner. Fully compliant and certified, INTRALOT’s Lotos X Lottery Solution is ready to run in every
regulated operation with complete responsibility and safety, according to the industry’s highest
standards.
On January, 2021, OPAP exercised its two-year extension option that concerns the LotosX Lottery
Solution deployment for the operation of OPAP’s numerical games that was extended for one more year
on December 2021. Moreover, on May 2021, INTRALOT, in co-operation with the Nederlandse Loterij,
completed the transition of the operator’s full gaming portfolio enabled by the innovative LotosX
platform. Lottery Draw-Based games, Scratch Cards and Passives, as well as the back-office operations
are now live in The Netherlands through LotosX.
Sports Betting Solution & INTRALOT Orion
INTRALOT’s Sports Betting Solutions, currently deployed in 11 Lottery & Sports Betting operations
worldwide are also tailored to suit the needs of regulated Lotteries and pure Sports Betting operators
globally, catering to customers’ needs across all channels and are an all-in-one solution that fully covers
the needs of managing an online and retail sportsbook. The solution offers among others rich risk
management tools, highly automated and efficient management of events and high frequency markets,
derivatives engine that enhance efficiencies and reduce man effort. Our solution comes pre-integrated
with all major 3
rd
party data feed providers; therefore the coverage is exhaustive and meets the needs
of every forward looking operator.
INTRALOT’s strategy in terms of our sportsbook content offering is to provide the wider possible
portfolio, targeting maximization of sales and engagement of as many players as possible. Unlimited
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offering capacity is one of the main pillars of our latest Sports Betting platform, namely Orion, which
can essentially support all known sports and markets. Moreover, there is a constant upgrade of the
offering capabilities with more markets being added regularly, including many innovative ones that have
emerged in the industry within 2021.
INTRALOT Orion
INTRALOT Orion platform, INTRALOT’s latest Sports Betting Solution and currently deployed in 4 major
European and US Lottery operators is designed to cater for the complete management of fixed odds
sports betting games, both at the operations level, through its extended functionalities for setting
competitions, games, odds, handicaps etc., and at the risk management and decision-making level,
through the real-time monitoring of betting transactions and risk exposures. INTRALOT’s Orion helps
our customers’ overcome any obstacles and limitations imposed by out-of-date architectures and legacy
systems, by providing:
• Richer content for all channels: All known Sports, more events, all known markets including
instant markets
• Risk Management automation through business rules configuration
• Multiple Feed aggregation
• Automated event management complemented by the option of manual intervention
• Front end independence through an open API framework in order to facilitate our omnichannel
vision
INTRALOT Enablers – Available for both Lottery and Sports Betting Solutions
INTRALOT enablers include a set of applications for addressing additional operational aspects of our
customers, outside the two core gaming platforms.
1. The management of content: Canvas Content Management System (CMS) is a powerful
platform for managing the content and UI across multiple touchpoints (websites, mobile native
apps, self-service terminals, retailer terminals, etc.) with build-in personalization and content
optimization features.
2. The management of the retailers: RetailerX is an end-to-end solution designed to empower
and motivate retailers, while enabling operators to efficiently manage retail network information,
ordering, ticketing, and inventory.
3. The management of the players: PlayerX is is a platform managing identifiable players in both retail
and online domains, to maximize their lifetime value and reduce churn.
4. The management of the devices: Device Management System (DMS) manages centrally all
retail network peripherals, while monitoring their performance and identifying any update or
upgrade needs.
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Customer Touchpoints (Operator, Retailer and Player) – Available for both Lottery and Sports
Betting Solutions
INTRALOT continues enhancing its Retail and Digital Transformation proposition for its customers by
introducing retail concepts, digital workflows and player journeys that will also accommodate the new
post COVID-19 challenge. To provide a unique player experience and trust, INTRALOT continues looking
into new technologies and ways to connect with the players like AI, IoT, AR, VR, Big Data analysis etc.
and we continue the incorporation of such features in our product portfolio roadmap.
INTRALOT is a 'one-stop-shop' for any organization looking to expand in the Lottery or Sports Betting
business, either in the retail or online space.The most popular touchpoints INTRALOT provides solutions
for are:
• Retailer terminals: A wide range of terminals used by the retailer/clerk in any type of retail
store (e.g., shop-in-shop, in-lane, dedicated store).
• Self-Service Terminals and Vending Machines: A wide range of player terminals that deliver
a thrilling experience, either in-store or in semi-attended spaces.
• Portal websites and mobile applications: Digital channels for playslip preparation and real-
money gaming.
• Canvas Signage - Digital Signage: Advanced audio-visual content capabilities that enrich the
retail gaming experience and boost player entertainment and engagement.
Retailer terminals (used by the retailer/clerk, for any type of retail store)
INTRALOT’s terminals for the retailer, combine robust technology for serving the advanced needs of the
retail channel, with innovative industrial design, and enhanced ergonomics and usability.
• PhotonX: INTRALOT’S latest retail flagship terminal revolutionizes lottery and betting retail
operations. PhotonX inherits INTRALOT’s patented and field-proven camera technology for
flawless playslip reading and maintenance-free operation.
• Photon: a fully functional, high performance camera-based lottery terminal that incorporates a
digital camera in a modern and ergonomic unit with large operator display.
• Proton: a compact, all in one, camera-based lottery terminal that offers the benefits of the
digital reading technology in a minimum retail footprint.
• Microlot: INTRALOT’s smallest full function terminal, an all-in-one device that supports
validation and payments for all gaming ticket types, supporting mechanical scanner-based
technology.
• Genion: a multi-functional solution that can serve as, among other things, a game validation
and payment terminal and an online and scratch ticket checker.
• Canvas Retailer: INTRALOT’s advanced web-based terminal software solution that consists of
a frontend application and a content management system, designed for Lottery and Betting
operations.
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Vending Machines
INTRALOT offers different flavours of Vending Machines to cater for different Lottery operators needs.
Our vending machines offer different instant ticket capacity options, player touch screens for game
selection, ticket checking and validation mechanisms, video advertising screens, payment methods,
player participation methods, security features. Our latest family of vending machines includes:
• Dreamtouch is a next generation vending machine which features a 42’’ FHD touchscreen
display. It supports up to 25 different types of instant scratch tickets and at the same time it
can display unlimited draw-based games and terminal instants.
• Dreamtouch 40: with the largest instant ticket bin capacity, namely 40 bins, it offers unlimited
possibilities, sales alternatives, and convenience features, which are impossible to achieve with
a conventional vending machine.
• Dreamtouch Compact is a full-service vending machine in compact size. It has an embedded
a 32" full high definition touchscreen for purchasing up to 12 instant scratch tickets and
unlimited draw-based games and terminal instants.
• Dreamtouch Smart is the first instant ticket vending machine in the market, for purchasing
unlimited draw-based games, terminal instants and up to 25 instant scratch tickets at the height
of just 54” (137 cm).
• Winstation30 is the only vending machine in the lottery industry able to dispense up to 30
instant scratch tickets. It is designed specifically for the sales of scratch tickets through its large
front panel with a simple “push of a button”, draw-based games and terminal instants by
interacting with the 10,1’’ embedded touch screen.
Self-Service Terminals
The Self-Service terminals come in a wide range of options and can be combined with the right frontend
and backend platforms aswell as peripherals (play slip scanner, bar code reader, high speed thermal
printer, smart-card reader, bill validator, coin acceptor and cashless payment device) to best serve the
distinct needs of each player. INTRALOT Self-Service terminals include:
• MPNG is the most successful Multi-Purpose Self-Service Terminal with a compact and
ergonomically design and minimal footprint. Its autonomous functionality and multiple
integrated participation methods allow it to act as an advanced stand-alone play point that
minimizes counter queues, increasing customer satisfaction.
• Gamebase is an integrated tablet desktop solution serving as players’ first touch point with
digital playslip preparation. Featuring a 21,5’’ FHD touchscreen, embedded barcode and smart
card reader and the option of an external printer, consists an innovative end-to-end solution
in traditional retail stores.
• GameKiosk (single or dual screen) is an all-in-one SST solution for modern in-store
environments with limited space. It features a pair of impressive 21,5” FHD screens on a
single, elegantly designed stand and a slim profile that occupies far less floor space than
competing self-service products, making it easier to install.
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• GameStation is the full self-service lottery solution, ergonomically designed with two 23” FHD
displays with LED cabinet illumination, enhancing the gaming experience and improving the
performance of existing games.
• Dreamtouch Lite X is an innovative gaming kiosk, designed to create a compelling user
experience. Its 32’’ full high definition inclined touchscreen in portrait orientation redefines
players’ experience, resembling personalized gaming experience, that is usually provided via
handheld mobile devices. Dreamtouch Lite X is hosting Tapnbet innovative concept of prefilled
betslips that makes gaming easy and fun for any player.
Services
Our offered services cover the whole spectrum of the day-to-day operational activities of lottery
organizations and are categorized into the following areas:
IT Professional Services
In today’s complex, fast-changing world, where Information Technology (IT) is the backbone of the
world economy and an enabler of business innovation, the gaming sector is in need of IT Services that
enable the enterprise to effectively respond to new business needs while ensuring high performance,
customer trust and cost efficiencies. INTRALOT experience and certified professionals provide IT
professional services, targeted at the network, database, operating system and infrastructure layers of
IT. Such services are certified according to ISO 20000 on IT Service Management, follows the COBIT 5
principles and is also certified according to WLA SCS and ISO 27001 security standards and EL
Responsible Gaming Standard for Vendors.
Technical Support
Our purpose is to inspire trust and generate value to customers internationally through streamlined
Technical support services that increase efficiencies. By effectively taking care of your daily, system
back-end support activities and by facilitating your Depot and Field Support needs, we enable you to
focus on strategic customer-facing activities, such as player/ retailer acquisition and retention. An
experienced team with deep and holistic understanding of technical support operations are able to design
/ implement / deliver / handover knowledge on areas related to Call Centers, Field Support, Logistics
and DevOps operations.
Moreover, INTRALOT’s Global Service Desk plays a vital role in building a relationship with our customers
based on trust and on delivering on our promise. INTRALOT’s Global Service Desk is the single point of
contact (SPOC) of our customers with INTRALOT headquarters for exceptional 24x7 technical support
services. The primary functions of the Service Desk include effective lifecycle management of incident
and service requests, including respective communication with customers.
Game Operations
Round-the-clock gaming operations, ensuring efficient system performance in 24/7 environments
worldwide. A dedicated, highly-specialised Operations team, which adheres to quality, security and data
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management best practices, undertakes the execution of our customers’ daily operational tasks as these
relate to the central system and add-on applications, thus resulting in:
• Reduced requirements for localised personnel, training and integration with new tools
• An enhanced player / customer experience with on-time task execution and high levels of service
availability
• High level data integrity and quality of service rendered
Game operational activities undertaken range from daily administration of a single subsystem to that of
end-to-end, complex retail and online IT solutions for Lotteries, Gaming and Interactive Games.
Training - Intralot Academy
While currently offering more than 30 training courses, INTRALOT remains committed to continuously
extending and enhancing its knowledge offering to the Gaming industry. As part of this effort, we are
proud to announce the launch of the INTRALOT Academy in September 2020, a state-of-the-art training
program aimed at offering to our existing and new customers valuable, hands-on knowledge of our
products and services, and bringing them up to speed with the latest Industry advances and trends.
Focusing on Gaming market expertise and sector-specific skills, INTRALOT Academy offers top-quality,
tailor-made and targeted training courses—both remote and onsite—managed and ran by seasoned
gaming professionals and based on INTRALOT’s ISO 29993 and ISO 9001 certified training methodology.
Sports Betting – Managed Trading Services
INTRALOT offers a full spectrum of customized betting management services, the range of which covers
all aspects of managing a sports betting operation, from strategic business planning, product design,
betting product production (pre-game and live) and risk management, through to support services such
as sales channel design and management, marketing and training. INTRALOT’s sports betting services
are fully ISO 9001:2008 certified and cover the full range of sporting and non-sporting events provided
through Internet, Mobile and Retail channels.
INTRALOT’S Managed Trading Services is a proven and certified 24/7-365 operation. Our highly
experienced Pre-Game and In-Play trading teams provide services for numerous operators located in
different jurisdictions. We operate on four continents and service numerous sports betting projects that
proves our flexibility, gaming experience and the highest quality of our services.
Managed Trading Services’ key highlights, making the difference with the rest of the industry providers:
• Dedicated teams per jurisdiction rather than white label approach
• Separate Pre-Game & In Play trading teams
• Dedicated player profiling team
• In house special bets and novelty markets creation and odds compiling to satisfy all operator’s
regional requirements
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Sales & Marketing Services
Our local marketing teams provide consulting support and a full range of marketing services and are
supported by our global marketing resource center, which brings global insight and an overall strategic
perspective to each contract. Our services include:
• Product portfolio development: We define and manage the product mix and product strategy,
overlooking the localization/customization of the product offering, monitoring product and
availability performance. Main activities include: competition analysis, new features design, case
studies preparation and more.
• Market Research and Analysis: We seek to continuously enrich and deepen our player
understanding by analyzing the tens of millions of players-initiated transactions we enable
globally. We also stay in touch with our target players’ preferences and habits, by analyzing
consumer response to market research commissioned and conducted in various countries across
the world.
• Game Design and Analysis: We continually test new gaming concepts in order to maintain the
appeal of our games’ library across diverse markets. In addition, we tailor each game to satisfy
the particular needs of individual clients.
• Marketing Communication: We design appropriate marketing strategies based on the
communication requirements set by the gaming operators, focusing on the development of
tailored communication concepts such as advertising, branding, media buying programs,
promotions and merchandising.
• Sales Network Design and Development: We offer know-how and experience in the design and
implementation of extensive and efficient sales networks.
GDPR compliance
INTRALOT has established personal data protection as a strategic priority towards ensuring player,
customer, employee, partner and shareholder trust. INTRALOT's Data Protection Framework addresses
the requirements of the EU General Data Protection Regulation (GDPR). The Framework combines
organizational, procedural and technical controls for serving the rights of data subjects in a
multidimensional manner, considering internal and external stakeholders. In order to achieve that,
INTRALOT has combined Privacy Good Practices, its Enterprise Risk Management Framework for
managing related risk and for conducting Data Privacy Impact Assessments, as well as its Cyber and
Information Security Frameworks. The later focus on the identification of Information Security needs,
Data Protection as well as Incident detection, response and recovery, customized to the requirements
of GDPR. Privacy by design has traditionally been a core element of INTRALOT products and services,
while the data subject remains at the epicenter, being served with transparency and respect.
Demonstrating its commitment to systematically protect personal data within its Information Security
Management System, INTRALOT implements specific rules and controls in the following areas:
• Organizational controls (e.g. a Data Privacy Officer in all Group companies with over 250
employees).
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• Risk assessment and data identification (e.g. risk assessment of products and operations).
• Technical controls (e.g. maintain encrypted backup of personal data).
• Operational controls (e.g. strictly prohibit transfer of personal data outside a jurisdiction,
unless written authorized by the Group Legal Counsel and the Group Information Security
Officer).
• Contractual controls (e.g. data processing according to a contract or other legal act).
Research & Development
INTRALOT’s R&D general objective is the constant improvement and further development of its gaming
systems, services and products, and the introduction of innovation in company divisions, Group
members and customers. In this effort INTRALOT consistently invests a substantial amount of dedicated
and non-dedicated resources in R&D programs, which foster emerging technologies and promote
innovation in the gaming market.
INTRALOT’s rich history of technology advancement and innovation has brought international
recognition in the gaming market. Our R&D programs and the harmonious collaboration with third party
vendors as well as innovative products and solutions considerably contribute to the advancement of the
gaming industry, including, among others in 2021:
• Retailer terminals (PhotonX improvements, new platform for Proton, Camera improvements,
new Ticket Checker device),
• Self-service terminals (prototypes of Gamebase, Gamekiosk, MPNG v2 and DT-LiteX),
• Vending terminals (Dreamtouch40 prototype, ticket by ticket activation, new participation
methods),
• Digital Signage (new media players and extensions to our Canvas Signage platfrom), all with
unified CPU platforms and advanced Operating Systems,
• Retail digital transformation (Scann Play, proximity play points, digital playslips),
• VLT and monitoring solutions including our new generation Site Controller for VLTs and COAMs,
• Lottery applications (new lotto game types, product bundling, dynamic process management),
• Fixed Odds Betting applications (dynamic configurations, automated actions), instant games
management (machine learning techniques for sales forecasting, suggestive ordering),
• Interactive Peer-to-Peer Gaming (fraud management, responsible gaming, KYC, marketing) and
finally,
• Technology architecture (centralized monitoring, logging standardization, resource
management driven by AI algorithms).
Apart from in-house R&D, INTRALOT is cooperating with leading educational institutions and Technology
Vendors and has established Development Centers in the US and Greece.
As of December 2021, INTRALOT holds 261 granted patents, while there are 9 additional active patent
applications pending in various stages. Our most recent patents include methods and systems for
enabling personalized game betting and lottery playing, new game types as well as the design of various
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types of terminals (i.e. multi-purpose new generation terminal, full self-service terminal, vending
machine, retailer next generation terminal.
BUSINESS REVIEW
Industry Overview & Market Drivers
Global gaming market
Overview
The gaming industry comprises of lottery games, casinos, sports betting, bingo, horse racing, gaming
machines and online gaming. According to H2GC, revenue net of payout (“GGR”), which constitutes
gross turnover in respect of gaming activities less the amount paid out to players as winnings but
including bonuses, is estimated to have grown to €357,6 billion in 2021, from €368,7 billion in 2016,
representing a CAGR of -0,6%.
The gaming market is estimated to have grown significantly by +10,8% in 2021 due to the gradual
recovery of the industry after been hit by COVID-19. The regions that present the higher growth rates
when compared to the average global y-o-y growth are Latin America, North America and Oceania with
regional y-o-y growth at the levels of +34,2%, +13,7% and +11,1% respectively (based on 2021e
figures). Latin America and Oceania are the only regions that have managed to surpass the levels of
2019 GGR, that occurred prior to COVID-19 effect.
More specifically, North America, the region with the highest share in 2021e global GGR, that of 33%,
presented a y-o-y increase in all gaming sectors with overperforming the Betting category. Especially,
the y-o-y growth in Sports Betting was at +112,5% as has not been hit by COVID-19 pandemic due to
the continuous opening of more and more markets.
In Asia / ME, the gaming markets that contributed with the highest shares in 2021e regional GGR, China
and Japan, they present a y-o-y growth of +6,1% and +0,4%, mainly due to growth in Betting, though
without having yet reached the pre-COVID-19 levels of total GGR.
Europe, which represents 27,4% of the Global GGR (based on 2021e figures) presented significant y-
o-y increase in Betting and Lotteries, at the levels of +20,6% and +9,3% respectively, managing to
reach the pre-pandemic levels of performance in these gaming categories. On the top performing
markets, in terms of 2021e GGR, UK and Italy presented a y-o-y growth of +5,6% and +9,5%
respectively, reaching 2019 performance in most categories. Spain presented high y-o-y growth of
+18,3%, still without reaching the levels of 2019 performance in any gaming category. Lastly, France
with a y-o-y growth of +1,4% managed to reach 2019 performance only in Lotteries.
Latin American (incl. the Caribbean) markets present y-o-y growth in all game categories, with Betting
and Lotteries managing to reach 2019 levels of performance. More specifically, the top contributors of
the region, the Brazilian, the Colombian and the Puerto Rican markets, they have presented estimated
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y-o-y growth of +16,9%, +78,8% and +57,3% respectively, having reached 2019 levels of performance
across all game categories.
Oceania, with a share of 6% over the total estimated 2021GGR, presents a y-o-y growth in GGR of
+11,1% with all game categories having reached the pre-pandemic performance.
Finally, Africa, with only 1,3% of the Global estimated GGR in 2021, presented a +10% y-o-y increase,
mainly due to the significant increase of +62,7% in Betting, that has managed to regain the size of
2019.
Overall, 2021 was a year that was characterized by the gradual recovery of the gambling industry
globally. The game category that marked the highest y-o-y growth rate at +26,2% was Betting. Betting
is also the game category that, not only managed to reach 2019 performance, but also to surpass it.
The reasons behind this are beyond the re-occurrence of sports events, but also due to the opening of
the market in certain regions (U.S.) and the increasing trend of the category.
Gaming market trends by region
The Global gaming market GGR was estimated to have remained rather stable at -0,6% per year (CAGR)
between 2016 and 2021e. The top performing region, North America, presented a positive CAGR 2016-
2021e of +1,7% due to the continuously enriched portfolio offered in various U.S. markets that follows
the evolutions in regulatory framework. At the same time, the performance of the following two top
performers, Asia / ME and Europe has marked negative CAGR of -3,9% and -0,6% respectively.
Source: H2 Gambling Capital, Global Summary Jan ’22. Data for Fiscal Years 2021-2026 are estimated
by H2GC.
In terms of growth, according to H2GC, the Global gaming market is estimated to grow at a high rate
of +7,8% CAGR 2021e-2026e, as the industry recovers gradually from the effect of the pandemic
COVID-19 and follows its growing trend.
From a regional perspective, the gaming markets in Αfrica and Latin America (incl. Caribbean) are
developing ones and are expected to grow with the highest CAGRs 2021e-2026e of +15,1% and +9,5%
respectively. Apart from the growing economies and the recovery from COVID-19 effect in the industry,
mainly in Betting and Land-based offerings, the growth is due to expected upcoming changes in the
regulatory framework (esp. in the Online channel).
Total Global GGR
(€bn)
‘16 ‘17 ‘18 ‘19 ‘20 ‘21E ‘22E ‘23E ‘24E ‘25E ‘26E
CAGR
21E-
26E
Africa 3,5 3,9 4,4 4,7 4,1 4,5 5,6 6,8 7,7 8,4 9,2 15,1%
Asia/ME Europe 129,3 138,3 148,3 144,1 98,2 106,1 129,9 143,6 146,9 150,5 154,8 7,8%
Europe 101,3 103,9 107,0 110,9 90,3 98,1 121,5 126,4 131,4 136,3 141,5 7,6%
Lat Am & the
Caribbean
7,8 8,1 8,4 9,3 7,0 9,4 11,2 12,2 13,1 14,0 14,8
9,5%
N America 108,2 109,8 114,9 120,2 103,7 117,9 140,3 155,7 163,2 170,2 177,3 8,5%
Oceania 18,6 18,5 19,4 19,7 19,4 21,5 22,1 22,3 22,9 23,4 24,1 2,3%
Global Total 368,7 382,5 402,4 409,1 322,7 357,6 430,5 467,1 485,2 502,9 521,6 7,8%
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The top contributors to global GGR are estimated to keep-up with the global growing trend, as well.
North America with CAGR 2021e-2026e of +8,5% is expected to grow mainly due to the top contributor
country in regional GGR, the United States. The U.S. growing trend of +7,5% is due to the new offering
of Sports Betting in both channels with CAGR 2021e-2026e +14,7%, and the Online offering esp. in
Poker, Casino and Lottery products. Canada presents a high CAGR 2021e-2026e of +21,3% with Casino
leading the growth, while recovering from any lockdown measures that have taken place due to COVID-
19.
Following, Asia /ME with a contribution to Global GGR of 29,7% is estimated to grow with a CAGR 2021e-
2026e of +7,8%, with the regional GGR though lagging far lower than pre-COVID-19 performance in all
product verticals, excluding Betting. The highest growth is expected in Casino, at +19,3% CAGR 2021e-
2026e, with Macau trying to reach pre-pandemic performance in the following 5-year period. Amongst
the top two contributors to regional GGR, it is Betting and Online Casinos of both Chinese and Japanese
markets that drive growth.
With a share of 27,4% to the estimated 2021 global GGR, Europe is estimated to grow with CAGR
2021e-2026e of +7,6%. The European gambling markets still suffer from losses due to COVID-19
pandemic, especially in Land-based offerings. Betting and Lotteries are the verticals that have reached
2019 performance, though with the contribution of Online channel capitalizing on the drop in the
performance of the Land-based operations.
Oceania, with a share of 6% to estimated 2021 global GGR, is estimated to present a lower rate of
growth +2,3% CAGR 2021e-2026e mainly attributed to the +5,6% growth of Online Betting in the top
contributor, the Australian market.
Gaming market trends by product
Our addressable market includes lottery games, sports betting, horse racing, gaming machines,
interactive gaming, and other activities, such as bingo. Casinos (incl. Native American gaming) are
excluded.
Source: H2 Gambling Capital, Global Summary Jan ’22. Data for Fiscal Years 2021-2026 are estimated
by H2GC.
For the following 5 years, the game verticals that are estimated to bring the highest growth are Casino
and Sports Betting with +10,9% and +10,6% CAGR respectively. In the following years it is expected
for Casino to overcome the losses caused by COVID-19. As for Sports Betting, it is expected to follow
Total Global GGR
(€bn)
‘16 ‘17 ‘18 ‘19 ‘20 ‘21E ‘22E ‘23E ‘24E ‘25E ‘26E
CAGR
21E-
26E
Betting 52,4 56,6 64,6 66,3 59,7 75,3 87,7 95,0 102,2 108,2 114,4 8,7%
Casino 124,5 134,0 143,0 146,3 99,4 112,2 145,5 168,9 175,1 181,6 188,4 10,9%
Gaming Machines 81,7 81,2 80,4 79,3 53,8 52,9 72,6 73,3 73,3 73,5 73,8 6,9%
Bingo/Other Gaming 7,3 7,5 7,8 8,1 6,7 7,5 8,7 9,7 10,1 10,6 11,0 8,1%
Lotteries 102,9 103,3 106,6 109,1 103,0 109,7 116,0 120,2 124,4 129,0 134,0 4,1%
Global Total 368,7 382,5 402,4 409,1 322,7 357,6 430,5 467,1 485,2 502,9 521,6 7,8%
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the continuous growth of the past years. The following drivers are expected to shape the overall
outstanding performance for this growth:
• The expected growth in the Betting market in North America, with CAGR of +15,3%. This is
mostly driven by the U.S. markets, since the U.S. Land based Betting and Online Betting are
estimated to grow with CAGR of +7,2% and +18,9% respectively, due to the developing
environment that has followed the changes in the regulations.
• The Betting market in Africa, with the top highest growth at +17% CAGR 2021e-2026e. The top
contributors’ countries in Betting that are estimated to present the highest potential for growth
in the Betting sector are Kenya, Nigeria and South Africa with +30,4%, +19% and +15% CAGR
2021e-2026e respectively.
• The Betting market in Latin America, with +13,4% CAGR, mainly produced by Brazilian Betting
sector with +23% CAGR in total, whilst Land based and Online Betting are estimated to grow
with a +75,1% and +18,8% CAGR respectively.
• In Europe, the Betting sector is estimated to present lower increase rate at +7,9% CAGR. The
countries that are the drivers of growth are Spain, Germany, Italy and France, with +10,1%,
+9,9%, +9,1% and +8,5% CAGR respectively, mainly due to the continuous growth of Online
Betting.
• The Asian betting sector is expected to present a CAGR of +7,9% with the Chinese market
expected to grow at +9,9% CAGR.
Lottery games represent the most traditional segment and have historically attracted the largest number
of players. The lottery segment was projected to have contributed to 30,7% of the total estimated
gaming market in 2021 (€109,7 billion). For the past years, the growth in the segment has been
supported by a shift towards privatization, incorporating greater variety of products a shift to alternative
channels, the latest accelerated further by COVID-19 and the restrictions that were imposed in the Land
based channel across markets. For the following 5 years, according to H2GC, this segment is estimated
to grow at CAGR of +4,1%, with the most notable performer in terms of CAGR for the period 2021e-
2026e being the U.S. Lottery, with +6,0% CAGR, and more specifically with +31,2% in Online Lottery,
due to the changes of the offering by even more state Lotteries.
Online market trends
Online gambling, via desktop, mobile and iTV, has reached a penetration of approximately 24,9% of the
total estimated 2021 Global GGR (€89,1 billion) and is estimated to reach 28,3% by 2026 (€147,7
billion). Betting is the strongest product of the total online GGR and accounts for 53,8% (€48,0 billion);
followed by Casino (26,7%), State Lotteries (11,9%), Poker (3,8%), Bingo (2,5%) and Skill/other
gaming/Lotteries resales (1,3%). State Lotteries, Casino and Betting are the products with the expected
highest potential for growth with +13,6%, +12,9% and +9,4% CAGR in 2021e-2026e respectively.
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Source: H2 Gambling Capital, Global Summary Jan ’22. Data for Fiscal Years 2021-2026 are estimated
by H2GC.
The projection for 2021 shows that Europe holds the leading position in the global Online GGR, with a
share of 46,7%. Though the sharp growth rates of expansion are expected by North America, which is
the third top contributor to global GGR, as well as by evolving markets like Latin America (incl. the
Caribbean) and Africa for the Online channel. North America has the potential to drive the online market
due to expectations that various ongoing legal changes that are taking place in the current legal
framework across U.S. in both Betting and Lotteries.
Source: H2 Gambling Capital, Global Summary Jan ’22. Data for Fiscal Years 2021-2026 are estimated
by H2GC.
The contribution of mobile gaming to total Online GGR is estimated at 43,1% for 2021 and is estimated
to reach 52,1% of total estimated Online GGR for 2026, showing an increasing annual growth rate in
GGR of +14,9%. Apart from the high penetration of smartphones, COVID-19 pandemic has highly
affected players’ habits and preference towards participation in gaming via alternative channels. It is
expected that these shifts in habits are permanent and will drive growth in these channels’ performance
in the following years.
Betting that contributes the highest share of 62,1% in Total Mobile estimated GGR in 2021, is expected
to grow at a rate of +13,4% CAGR 2021e-2026e. On the other hand, Lotteries with a share of 10,5%
are expected to grow with a high pace, that of +18,6% CAGR 2021e-2026e.
Total Global GGR
(€bn)
‘16 ‘17 ‘18 ‘19 ‘20 ‘21E ‘22E ‘23E ‘24E ‘25E ‘26E
CAGR
21E-
26E
Betting 20,9 23,9 27,8 31,1 37,3 48,0 53,5 59,0 64,9 69,8 75,1 9,4%
Casino 10,5 12,0 13,2 14,9 19,3 23,8 27,0 34,3 37,5 40,5 43,6 12,9%
Poker 2,4 2,4 2,4 2,5 3,2 3,4 3,2 4,3 4,4 4,5 4,6 6,5%
Bingo 1,7 1,8 1,8 1,9 2,1 2,2 2,2 2,3 2,4 2,4 2,5 2,6%
Skill/Other
Gaming/Lotteries
Resales
0,6 0,7 0,8 0,9 1,0 1,1 1,2 1,3 1,4 1,6 1,7
8,2%
State Lotteries 4,5 5,0 5,7 6,9 8,9 10,6 12,2 14,5 16,2 18,1 20,1 13,6%
Global Total 40,6 45,9 51,8 58,2 71,8 89,1 99,3 115,7 126,9 137,0 147,7 10,6%
Total Global GGR
(€bn)
‘16 ‘17 ‘18 ‘19 ‘20 ‘21E ‘22E ‘23E ‘24E ‘25E ‘26E
CAGR
21E-
26E
Africa 0,4 0,5 0,7 0,9 0,9 1,4 1,8 2,3 2,8 3,2 3,7 21,6%
Asia/ME Europe 11,9 13,2 14,7 16,6 21,9 24,9 26,2 28,5 30,7 32,8 35,0 7,0%
Europe 20,0 23,2 26,4 29,7 34,8 41,6 45,6 49,4 53,3 57,0 61,1 8,0%
Lat Am & the
Caribbean
0,6 0,7 0,9 1,1 1,2 1,8 2,0 2,5 2,9 3,2 3,5
14,7%
N America 4,6 4,9 5,3 6,0 8,3 13,1 17,1 26,5 30,1 33,2 36,2 22,6%
Oceania 3,1 3,3 3,7 4,0 4,8 6,3 6,6 6,5 7,0 7,6 8,2 5,4%
Global Total 40,6 45,9 51,8 58,2 71,8 89,1 99,3 115,7 126,9 137,0 147,7 10,6%
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Competition
Competition in the gaming market is intense as the post-COVID-19 landscape has greatly emphasized
the importance of the online channel and the option of remote gaming, even withing the retail stores.
Competition for lottery contracts remains mainly amongst the two key international players that operate
across B2B/B2G and B2C segments and compete with INTRALOT for all types of contracts: International
Game Technology (“IGT”) and Scientific Games Corporation (“Scientific Games”). In addition to these
international competitors, in jurisdictions where we have B2C operations, we face competition from
numerous local companies, particularly for licensed operations.
Competition in the B2C segment is a function of the regulation in each jurisdiction. For example, an
operator owning an exclusive concession does not face competition from similar gaming offerings, while
in open markets B2C players face competition from the other local operators.
According to VIXIO Gambling Compliance (U.S. Sports Betting & iGaming Outlook 2022), the
competition evolves rapidly in the market with more and more states regulating sports betting and
assigning licenses. In 2021, 12 states began offering legal sports betting for the first time. In total, 10
states passed laws in 2021 to either authorize sports wagering or materially expand their markets (as
in New York), versus just 2 states in 2020. It is expected further 3-9 states to legalize sports betting in
2022.
The U.S. sports betting market is expected to be worth $12,1 billion to $17,7 billion in total annual gross
revenue by 2025, depending on whether legislative trends align with the expected scenarios. In addition
to that, the forecast for the total revenue from all U.S. online gambling (online sports betting plus
iGaming in certain states) to reach $17,3 bn to $22,6 bn by 2025.
The main international players that compete with INTRALOT in the sports betting arena are International
Game Technology (“IGT”), SG Digital (Openbet), SBTech, Playtech and Kambi. In addition to these
international competitors, in jurisdictions where we have B2C operations, we face competition from local
companies, particularly for licensed operations.
Our Strategies
Deliver best-in-class technology solutions and maintain leadership in technology innovation
The most important element of our sustainable growth strategy is to maintain our industry leadership
in technology and innovation. This core strategy of INTRALOT emanates from the fact that lottery and
gaming is a technology and supply driven industry and thus technology innovation drives growth.
In this sense, we strive to develop leading technology solutions for lottery, sports betting, interactive
and gaming machine monitoring, through continuously investing in R&D activities that foster innovation
and early adoption of industry shaping trends. Our R&D programs include partnerships and collaborative
initiatives in Greece and abroad, a recent example being our collaboration with Microsoft for utilizing
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Microsoft’s Azure cloud computing services, a significant landmark for INTRALOT as it builds upon the
main pillar of its strategy to introduce business innovation through digital technology.
In addition, our R&D efforts have resulted in numerous industry awards and distinctions,
most recently the Gold Award for Technology Excellence in the category of "New Technology
Trends in Cloud Applications and Services, received at Impact BITE Awards 2020".
In parallel, we strive to patent our proprietary technology inventions and we have been granted with
multiple technology patents certifying our innovation capability. As of December 31, 2021, INTRALOT
holds 261 granted patents, while there are 9 additional active patent applications pending in various
stages. For more details, refer to section “INTRALOT Solutions, Products and Services \ Research &
Development”.
Our R&D efforts have led to the development of the next-generation of our core gaming platforms and
products, specifically the LotosX platform ecosystem, the PlayerX interactive lottery platform, the
INTRALOT Orion, our new omni-channel sports betting platform, the PhotonX lottery terminal, delivering
the outmost performance and operational efficiencies, as well as Lotos Xi a natively omni-channel
iLottery solution offering a wide range of engaging interactive lottery games and features personalized
player experiences through powerful data analytics.
Our LotosX, the only legacy-free lottery platform in the industry, has been designed to become our
universal platform ecosystem to help us more efficiently tailor and continuously enhance the delivery of
our products and services. You may see more details in section “INTRALOT Solutions, Products and
Services \ Lottery Solution and LotosX \ LotosX”. LotosX gaming platform is a characteristic example of
our innovative approach to maintaining our contracts and expanding our footprint through the adoption
and implementation of recently developed technologies. As proof of that, during 2021 we saw the
successful migration to our LotosX platform coupled with new Photon lottery terminals for our long-time
customer Nederlandse Loterij in the Netherlands, and the continued operation of LotosX with outmost
resilience and performance for several European customers including OPAP, one of the top selling
lotteries in the world.
The service oriented philosophy and modular architecture of our solutions, in addition to their distinctive
third party integration and interoperability capacity, allows us to provide our lottery and gaming
customers with optimally tailored solutions coupled with external components that are relevant and add
value for the specific market. Additionally, their native support for online, mobile and retail channels
ensures greater revenue generation potential and wider business opportunities for INTRALOT. It is
noteworthy that amid the COVID-19 pandemic, the ease of integration and interoperability of our
solutions enabled us to support our customers and operations with complementary gaming offerings, as
for example of the launch of e-sports with our customers in Peru and Taiwan and the broad expansion
of our sports betting offering in Malta with e-soccer, virtual sports and AI-driven simulated betting
games. Moreover, the underlying technologies adopted, provide for flexibility in solution deployment
models, operating margin expansion and moderating capital needs for new system installations.
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Over the course of the last years, we carried out a technology portfolio overhaul, which yielded
innovative and best-in-class solutions, which deliver immersive player experiences and broad
operational efficiencies.
In early 2017, we developed and launched our Pulse family of products, a player – and retailer– centric
suite of solutions designed to effectively manage interactive gaming operations, increase frontline
performance, and reduce operating overheads. Pulse incorporates customer relationship management
(CRM) tools to drive player tracking, management and engagement while offering robust retailer
management functionality that can drive incremental same-store sales.
In 2018, we launched INTRALOT Orion, our latest omni-channel sports betting platform, a unique in the
industry sportsbook solution combining the strong qualities and retail functionalities built over the years
by INTRALOT with innovative online betting functionalities, already used by a range of top-tier online
operators. This natively omni-channel sports betting solution provides us the opportunity to expand our
sports betting offering in the interactive space, while providing a strong competitive advantage to win
new contracts in the fast-growing sports betting landscape. As proof of the early industry recognition,
within the year INTRALOT Orion has been shortlisted for the Global Gaming Awards 2020 in Las Vegas,
in the “Land-Based Product of the Year” category.
You may review more in section “INTRALOT Solutions, Products and Services \ Sports Betting Solution
and INTRALOT Orion \ INTRALOT Orion”.
In 2019 we launched PhotonX, the most powerful and best-performing retailer terminal, designed to
revolutionize lottery and betting retail operations. Utilizing INTRALOT’s patented camera technology,
PhotonX provides for maintenance free operation, while offering powerful performance and advanced
built-in multimedia capabilities. PhotonX provides a range of benefits for the Lottery Operator, the
Retailer, and the Player at the retail touchpoint and has already been recognized with the “Lottery
Product of the Year” award at the International Gaming Awards 2020.
In 2020 we launched, LotosXi, our latest, state-of-the-art digital Lottery solution, which provides a
unified player experience, and offers fast and engaging multi-channel gaming content. Designed to drive
efficiencies in digital channels, this innovative i-Lottery solution enables lottery operators to create and
offer subscriptions and online play across all lottery games. LotosXi, adopts a natively omni-channel
approach to provide a wide range of entertaining and engaging games and offer personalized player
experiences through powerful data analytics.
We are confident that our technology continues to lead the market as our next generation products and
solutions are already receiving significant market traction, with contract extensions and new contracts
in Europe, North America and beyond.
In addition, and as part of our overarching “asset-light” model, we have streamlined our technology
development and delivery model though efficiency-enhancing measures that promote agility and
performance. This model is intended to produce higher operating margins, while moderating capital
expenditures, and in turn to enhance our cash flow resilience.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
36
For more details, refer to section “INTRALOT Solutions, Products and Services \ Research &
Development”.
Maintain and expand our contract base in target markets with attractive growth potential
The second element of our strategy is to maintain and expand our contract base with our main focus
being the US market, the current epicenter of industry developments with sports betting regulation
evolving across States, while our business development efforts will underpin our strategic shift from
emerging markets to mature markets, like North America and Europe.
Since the overturning of PASPA, we have developed appropriate plans to increase our sports betting
footprint in the US, in partnership with our strategic State Lottery clients, and in this sense our legislative
priority is to promote lottery-run sports betting across States. Our current US Lottery footprint provides
us a path to 11 States and the District of Columbia, with a vast addressable population, and it is our
strategic intent to leverage this unique opportunity to create sustainable value. We believe that the
Sports Betting contracts concluded in recent years with State lotteries in the District of Columbia,
Montana, and New Hampshire, provide us with the perfect platform to deliver on this strategic objective.
Our Sports Betting operations in Washington DC and Montana, launched in 2020 continue to perform
consistently, which proves that our strategy is bearing fruit.
Moreover, and as part of our “asset-light” model, we will pursue other opportunities through establishing
local partnerships in certain target markets with local partners, that can instill our operations with added
value. Historically, when we entered new markets, we funded our expansion, deployed our products,
and provided operational services utilizing our own resources. During the recent years, we have shifted
our go-to-market approach with a focus in pursuing the establishment of new local partnerships. We
believe such partnerships provide the best means to grow and operate more efficiently in certain local
markets, as we can benefit from our local partners’ relationships and their knowledge and understanding
of the regulatory environment and local market dynamics. This approach also provides for sharing
financial and operational risks, reducing capital expenditures, and improving access to local funding. In
all such ventures we are deliberate and strategic in our selection of partners, and apply criteria in
selecting such partners that include being well-capitalized, having an established presence in their
respective domains and substantial experience in the local market, and having the ability to provide a
wide distribution for our lottery and gaming offering. Often these partners are experienced retail
operators, financial sponsors, or large utilities.
Herein under is a list of our local partnerships, the results of which are fully consolidated in our financial
statements, where their EBITDA contribution for FY21 is presented:
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
37
Local Partnerships
Country
INTRALOT
effective stake
Contract type
EBITDA contribution
in the twelve
months ended
December 31,
2021
1
Turkey (Bilyoner)
50,01%
Management contract
11,5%
Argentina
50,01%
12 facilities management (IT)
contracts with state lottery
operators and one licensed
operation
12,1%
Total
23,6%
1 For purposes of this table, EBITDA contribution is calculated as a percentage of the total INTRALOT
Group EBITDA, including countries with a negative EBITDA.
Value creation driven by increased cash flow generation, margin expansion and improving
longer-term revenue visibility
It is our strategy to improve our cash flow generation capability by creating cost savings and operational
efficiencies both internally at a Group level, as well as at the individual contract and project level.
At the Group level, we have recently undergone successfully a restructuring and organizational
realignment initiative in parallel with a broad-based review and optimization of our cost basis across
locations, including our strategic US subsidiary.
At the contract and local operation level, we plan to realize benefits through the effective management
of our long-term contracts and through forming strategic partnerships. We expect that operating
through local partnerships with well-established and experienced partners, will help us realize broad
operational and financial synergies at both the local and Headquarters levels. Furthermore, by partnering
with well-established and capitalized local partners, we will be able to minimize future capital
deployment needs, without hindering our ability to expand the scope of our existing contracts and to
compete for and win new contracts.
We also expect to improve our cash flow trajectory through the strategic and proactive management of
our long-term contracts. We selectively seek to maintain and enter long-term contracts, that match our
stringent profitability and cash generation targets. These contracts are often for higher margin business
activities, such as providing expanded facilities management or managed services.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
38
We continuously evaluate the profitability of our existing contracts and have selectively disengaged less
profitable contracts. We also aim to enhance revenue visibility and expected cash flow by entering
long-term contracts or renewable licenses, to provide recurring revenue stream stability.
For the year ended December 31, 2021, we estimate that approximately 35% (excluding extension
options) of the adjusted revenue for the period was generated through multi-year contracts or renewable
licenses that are available to us until 2026 (although actual revenue that may be generated in the future
from those contracts may increase or decrease). If we take into consideration the extension options of
our contracts, revenue visibility increases to approximately 49% until 2026. Adjusted revenue for the
revenue visibility estimation, refer to FY21 revenue adjusted for the contribution of contract
discontinuations and one-off revenue recognitions within 2021.
Disciplined capital allocation aimed to de-lever and optimize our capital structure
Our strategy is to steadily de-lever our business, through additional cash flow generated by expected
operational and financial synergies and efficiencies as well as the expected positive cash flow impact
from our shift to an “asset-light” model.
Over the previous years we successfully carried-out a program of non-core asset disposals as part of
our strategy. Further to previous divestments, we concluded this program with the sale of our entire
stake of 20% in Intralot de Peru SAC in early 2021 and our entire 80% stake in Intralot do Brasil in May
2021.
Moreover, by pursuing opportunities and entering new markets through local partnerships, we expect
to reduce our capital expenditures, increase our operational margins, and obtain access to local financing
with more favorable terms.
In addition, following the increased CAPEX requirements of recent years resulting from our market
refocus and from the implementation of new contracts, we seek to maintain a modest financial and
growth investment policy focused on strong liquidity, and thus we do not intend to undertake any
material acquisitions in the medium-term or to pay dividends to our shareholders until significant
deleverage is achieved. In addition, we intend to have a disciplined capital expenditure policy with
regards to undertaking projects that meet our investment-returns criteria. Maintenance capital
expenditure for continuing operations regarding the years ended December 31, 2019, and 2020, and
for the twelve months ended December 31, 2021 were €8,4 million, €7,3 million, and €10,9 million
respectively. We expect our maintenance capital expenditure to remain around or slightly lower than
the 2021 levels. Any additional capital expenditure is expected to depend on contract renewals or
growth.
Unwavering Commitment to Responsible Gaming, Social responsibility & Integrity
For us, responsible gaming, social responsibility, and integrity is not merely a strategy. These principles
are weaved into the company fabric and we promote them throughout our global operations in any type
of engagement. This unwavering commitment, which has been adopted since the company foundation,
we believe is essential for building trust with State Authorities and in turn for renewing our existing
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
39
contracts and winning new ones with lottery and gaming organizations in the State-sponsored gaming
sphere. In general, State Authorities and Regulators require us to conduct our business with all due
integrity and to provide well-designed games in a secure environment while preventing, to the maximum
extent possible, underage, illegal and problem gambling and minimizing any potential harm to society.
In this sense, we strive to adhere to the following key principles across the INTRALOT Group network:
• Comply with the applicable laws and regulations as set out by regulators in host countries;
ensure that the interests of players and vulnerable groups are protected.
• Continually develop appropriate practices and technologies on the basis of market research and
information gathered from our global operations.
• Promote the implementation of responsible gaming practices in our corporate activities and with
our customers’ activities.
• Educate and provide the public with accurate and balanced information to enable players to
make informed gaming choices.
• Maintain a standing commitment to be a good corporate citizen practicing corporate social
responsibility and observing high ethical and integrity standards in all our business dealings.
Our Strengths
Our presence in developed and high growth markets, our proprietary best-in-class technology and our
track record of innovation have led us to become a market leader in the gaming sector and create
significant barriers for new entrants.
Attractive Target Market Dynamics
We operate in a large and growing global market for gaming activities of all kinds. In 2022, global GGR,
is estimated to return to pre-COVID-19 levels and reach approximately €430,5 billion from
approximately €409,1 billion in 2019. Global GGR is presently estimated to reach approximately €521,6
billion by 2026, primarily due to the regaining of the significant losses caused by the COVID-19
pandemic, the continued liberalization of markets, the further privatizations of state owned lotteries and
the continued and accelerating convergence of physical and online gaming. Therefore, in terms of
growth, global GGR is presently estimated to grow at a CAGR of 7,8% from 2021 through 2026,
according to H2GC.
Although we participate in all gaming market verticals, we have a leading presence and we concentrate
our efforts on the most resilient segments of State-sponsored Lottery, Sports betting, and video
lottery/machine gaming monitoring.
The Lottery segment has high barriers to entry, as Lotteries are risk averse and their business is based
on credibility, while the incumbency advantage has always been strong. It is noteworthy that no
greenfield supplier has entered the business for many years and currently only two other companies
compete with us for State Lottery contracts. The global lottery market has experienced notable stability
and resilience, posting consistent growth in GGR since 2011 and up to 2019, as 2020 was a year
primarily characterized by the effects of the COVID-19 pandemic. Worldwide lottery GGR is estimated
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
40
to have returned to its growth trajectory and have reached around €109,7 billion in 2021, posting a
+1,3% CAGR since 2016 and up to 2021, and is estimated to further grow at a +4,1% CAGR between
2021 and 2026, reaching a level of approximately €134 billion by 2026, according to H2GC.
The Sports Betting market, although more competitive during the recent years, is by far the fastest
growing segment of our operations, posting a +10,5% CAGR since 2016 and up to 2021, and is expected
to maintain its strong growth trajectory in the coming years, showcasing a +10,6% CAGR between 2021
and 2026, and reaching a level of approximately €73,9 billion by 2026, according to H2GC.
Leading Proprietary Technology and Track Record of Innovation Provide a Secure and
Defensible Market Position
We believe that our significant and innovative technological and operational expertise has positioned us
as a global leader in the supply of integrated gaming systems and services, with a presence across
geographies, but focused on developing markets. We hold a leading market position in the majority of
the highly regulated markets in which we operate. We entered the United States in 2001 and have since
grown our U.S. operations to include contracts in 11 States and the District of Columbia, which we
believe demonstrates the value of our products and services. As of December 31, 2021, we enjoyed a
leading market position in the technology and support services market for lotteries in the United States
with an approximately 23% share of the market (by number of total state lotteries), a population
coverage of approximately 40 million people (or approximately 12%), and a market share in terms of
wagers handled
1
of approximately 11%. We believe our established presence, significant market share
and position as the single licensed operator in many of our markets, pose significant barriers to entry
for new entrants.
We currently hold 261 patents in gaming technology, and we test numerous gaming concepts across
our business activities annually to remain competitive in the latest games and concepts for the players.
Our leading development capabilities also allow us to provide innovative and technologically advanced
services across our three core business activities.
We also believe that our leading technology and R&D capabilities enable us to effectively compete with
other technology providers, decrease capital expenditures and upfront costs as well as reduce on-going
maintenance costs. We spent on a continuing operations basis €13,0 million, €12,5 million, and €2,7
million on R&D in 2019, 2020, and 2021 respectively.
The management and information systems we operate ensure compliance with industry standards and
allow us to succeed in a highly regulated and competitive market, a success also highlighted by the
important certifications we have received throughout our years in operation. We were the first
international vendor to be awarded the Security Control Standards certification by the World Lottery
Association, an award received by only a few vendors globally, which is an important distinction between
us and our competitors. Accordingly, we were the first vendor to reach an ISO 20000 certification, and
the World Lottery Association has also awarded us the Responsible Gaming Framework Certification.
1
Source: LaFleur’s data for lottery sales in Calendar Year 2020; refers only to numerical and instants’ contracts.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
41
Among others, we hold the ISO 20000-1 certification on service management, the ISO 9001 certification
on quality management and the ISO 14001 certification on environmental controls. We believe that our
focus on data protection, game integrity and service quality towards our players and other stakeholders,
will allow us to grow and retain our significant market position.
Broad-based Diversification across Contracts, Geographies and Business Activities
Our business is well-diversified across three core business activities of technology and support services,
management contracts and licensed operations which are carried out across the world with our current
focus on developed countries and mature markets. We currently have operations in 41 jurisdictions with
54 contracts.
EBITDA by Geography in the twelve months
ended December 31, 2021
(1)
(1) Chart figures are presented rounded and countries with negative EBITDA have been excluded from
the presentation.
In the twelve months ended December 31, 2021, our total positive EBITDA (excluding countries with
negative EBITDA) reached €148,6 million. Additionally, in the twelve months ended December 31, 2021,
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
42
Greek entities represented only 3,2% (1,7% from clients based in Greece) of our revenue. Furthermore,
we benefit from the growing share of contracts in developed markets in our portfolio, where we benefit
from stable recurring revenue through long-term contracts. We believe that our concentration on mature
and resilient markets allows us to mitigate risks that are specific to certain markets and regions as well
as the cyclical nature of the sports gaming industry. Moreover, we benefit from strong contract diversity
with a diversified portfolio of 54 contracts and licenses, including: 50 technology and support services
contracts, which comprised 74,1% of our revenue net of payout during the twelve months ended
December 31, 2021; two (2) management contracts, which comprised 11,8% of our revenue net of
payout during the same period; and two (2) licenses, which comprised 14,1% of our revenue net of
payout during the same period.
Highly Visible Recurring Revenues and Cashflows
We believe that the long-term nature of our contracts and our strong track record of contract renewals
provide us with significant revenue visibility. We estimate that approximately 35% (excluding extension
options) of the adjusted revenue
2
for the year ended December 31, 2021, were generated through
multi-year contracts or renewable licenses that are available to us until 2026 (although the actual
revenue that may be generated in the future from these contracts may increase or decrease). For
instance, our multi-year contracts in the Continental US have an average contract maturity of 6,6 years.
The terms of our 50 technology and support services contracts range from 3 months to 15,8 years, with
an average remaining contract length of 3,6 years (or 5,5 years considering certain of our customers’
renewal options), as of December 31, 2021. In terms of our management contracts, Morocco after the
recent amendment of the contract with La Marocaine Des Jeux et des Sports (MDJS) which was signed
in March 2021 ends on December 2023, while for Bilyoner its current contract ends in August 2029. Our
main license contracts in Malta and Argentina, have remaining tenors that range from 0,5 to 2,4 years.
We also have a strong track record of renewing or extending our contracts as they come up for renewal,
as demonstrated by our recent contract renewals and extensions in the United States and beyond. Since
2008, we have successfully renewed or extended approximately 90% of our US contracts. Based on this
experience, we expect to renew the substantial majority of our contracts upon their respective
expirations, which we believe reflects the strength of our market position. In 2021 we secured the
following renewals and contract extensions.
▪ contract extensions with the Ohio Lottery Commission, Vermont State Lottery and Wyoming
Lottery Corporation for the implementation, operation, and maintenance of a Lottery Gaming
System
▪ a one-year extension with Total Gaming Technologies Inc. concerning the lease of an online
gaming system for the operation of Keno games throughout in Philippines
▪ extensions of our contracts in Australia, with Lotterywest, the State Lottery in Western Australia
to continue to provide our lottery operating system and service
2
Adjusted revenue for the revenue visibility estimation, refer to FY21 revenue adjusted for the contribution of
contract discontinuations and one-off revenue recognitions within 2021.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
43
▪ a five-year extension with Caja Social de Santiago del Estero in Argentina in order to continue
to provide lottery operating system and services
▪ a three-year extension of our current contract with Intralot de Peru SAC through 2024, to
continue providing our gaming technology and support services
▪ a two-year contract extension with the Greek gaming operator OPAP for the provision of
numerical lottery products and services up to July 2024
In addition to our exceptional product technology and service offerings, our track record of renewal is
also supported by the fact that it is difficult for clients to switch technology or service providers due to
high startup expense in on boarding new technology and replacing equipment (central systems and
POS). Because the process to switch providers is lengthy and expensive, requiring advanced investment
from a competitor in time, technology and equipment, we believe that we are ordinarily able to identify
well in advance when a contract will not be renewed.
Highly Scalable Asset-Light Operating Model
Our latest technologies and delivery expertise, along with our flexible operational model, allow us to
create standardized products, which can be efficiently and swiftly adapted for individual deployments.
The underlying technologies utilized, and the features of our next generation solutions provide for
operating margin expansion and moderating capital needs for new system installations.
Additionally, our track record of successfully partnering with local partners has improved our ability to
expand our global reach, while minimizing required capital deployment and leveraging local expertise
and existing business relationships to drive synergies and operating efficiencies.
Our scalable business model is supported by our advanced IT platform, which allows us to optimize
product development by minimizing customization requirements during development while at the same
time providing for further product adaptation (“micro tailoring”) upon distribution, making our product
offering more adaptable. Moreover, our recent landmark collaboration with Microsoft to utilize MS
Azure’s cloud-computing services, aims to empower INTRALOT with a cloud operating model that
increases efficiencies and supports the rapid adaptation of our LotosX and Orion cloud-ready solutions
achieving reduced time-to-market, immediate scalability, availability, and interoperability.
Our adaptable model enables us to provide technology to third-party operators, manage operations on
behalf of licensees and hold and manage licenses directly as the IT platforms in various jurisdictions
permit. It also enables us to address broader gaming sector trends such as increased demand for a
personalized player experience, the development of a robust “all-in-one” gaming platform to ensure a
unified customer experience converging land based and interactive channels, while offering personalized
game offerings and content, and the shift towards mobile as the primary access point to online retail in
the gaming sector.
Our “asset-light” operating model is also focused on expanding the scope of our contracts in our target
markets. Due to the recent global trend towards regulation of previously restricted forms of gaming
driven by State budget deficits and increased demand for social welfare spending, we are able to expand
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
44
the scope of our contracts by leveraging our technologies, our cross-vertical expertise and delivery
capabilities. A key example of this business development approach is the US market, where we
succeeded to expand the scope of our lottery contracts and engage with lottery-run sports betting in
three States, already launching two sports betting under the State Lottery projects.
Moreover, and as part of our “asset-light” model, we pursue opportunities and enter new markets
through partnerships with local operators, which allow us to share financial and operational risk, reduce
capital investments and acquire new contracts and customers through our local partners’ relationships.
Historically, we sought to enter new markets on our own. However, in recent years we have established
a rigorous evaluation process for identifying potential partners in new target markets. We believe these
partnerships provide the best means to grow and operate efficiently in certain local markets, as we can
benefit from our partners’ local relationships, extensive know-how and access to capital.
Strong and Experienced Management Team
We have a seasoned and experienced management team, many of whom have been with the Company
since its establishment. Our management team involved in the strategic planning and management of
our day-to-day operations, has extensive experience in the industry while demonstrating a strong
technology background and a strategic perspective of the international gaming industry. Under our
Executive Management’s leadership, the company has been able to early identify the industry shaping
trends and pursue opportunities of long-term strategic value with significant revenue generation
potential before our competitors.
Our management team during the recent years has successfully refocused the operating model of the
Company on maintaining our leadership position in technology innovation and delivery. The
organizational changes implemented were aimed at supporting sustainable growth, through improving
operational efficiency and enhancing profitability across our operations. Moreover, the realignment of
resources has underpinned our efforts to successfully deliver our next generation technologies for the
projects recently contracted. In 2021, we continued to implement our Management’s strategic direction
for portfolio restructuring, in order to concentrate on developed and resilient markets.
Since 2011, Management has begun shifting our operations from the greater Balkan region to more
advanced economies, such as the United States, Oceania, and the European Union. Management has
also refocused the operating model of the Company on establishing strong partnerships with local
partners who can facilitate our growth in certain target markets, while also helping to operate more
efficiently and lowering capital expenditures. In addition, our contract management approach adopted
by our Management promotes the strategic consideration of potential as well as existing contracts to
optimize long-term cash generation.
Best-in-Class Risk Management and Corporate Controls
We are exposed to a variety of risks including game pay-out risk and compliance risk. Our overall risk
management strategy seeks to minimize potential adverse effects on both our financial performance,
as well as our credibility and reputation.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
45
Our primary game payout exposure comes from our global sports betting operations. We manage this
financial risk through best-in-class local odds setting, as well as a main betting center in Greece,
complemented by betting centers in Taiwan and Germany, that control our global fixed-odds betting
activity and payout policy on a real-time basis. Our sports betting portfolio represented approximately
17,2% of our total revenue for the twelve months ended December 31, 2021, and we have a long track
record of successfully managing payout risk. See “INTRALOT Solutions, Products and
Services/Services/Sports Betting Risk Management and Footprint”. We also enter into risk exchange
agreements with major international betting operators and early warning systems, as appropriate and
applicable, when possible to further reduce our potential exposure.
Furthermore, we have rigorous internal controls and compliance procedures that are in line with listing
standards and international best practices for cash management and legal and regulatory compliance.
These include procedures to monitor transactions, maintain key back-up procedures and regular
contingency planning, as well as internal audits and procedures to detect money laundering. All these
procedures are facilitated by our central system solutions, that control and track all our operations.
Strong and growing presence in the United States, driven by proactive client management
and leading product and technology offerings
Proactive client management leading to increased revenues
The United States, and more widely North America, has become the key jurisdiction for our Group and
a key part of our future growth strategy. Apart from our success in this region, the United States
represent a large and attractive market, with advanced and stable regulatory frameworks and a long
tradition in promoting and regulating profitable gaming operations. Most significantly it is a market with
large untapped potential for sports betting and i-Lottery gaming which is currently being regulated
across States. According to H2GC, GGR in North America is estimated at €117,9 billion in 2021, close
to 2019 level of GGR at €120,2 billion, before the COVID-19 pandemic impact. To capitalize on this
market, we have undergone rapid growth in the United States since 2015, whereby we have embarked
on an aggressive strategy that involves increasing revenue on contracts through procurement processes,
extending contracts where possible and profitable, and adding new contracts. This success has been
driven by our proactive portfolio management, whereby we examine and speak with our customers in
order to better understand their needs in today’s ever-changing, revenue-driven economy. This type of
engagement has typically led to contract extensions and increased revenue opportunities with current
customers. Recent examples of such successes within the year 2021 include the contract extension
through to 2023 with the Ohio Lottery Commission, as well as the extension of our contract with the
Vermont and Wyoming Lottery to provide lottery solutions and services.
In addition, we have repositioned as a technology-driven organization with solution delivery expertise
focused on the growth of our customers, which we believe has allowed us to obtain key new client
wins/extensions. We continue to add to our portfolio by positioning ourselves not as a commodity
product vendor, but rather as a valued business partner.
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
46
As one of three primary competitors in the US lottery industry, innovation is critical and INTRALOT
continues to be a leader. INTRALOT has led the industry in the three (out of four) state lottery start-ups,
establishing the Arkansas Lottery, Wyoming lottery, and Georgia Coin Operated Amusement Machines
(approximately 29.000 devices) and not only selling in record time, but also sustaining and increasing
sales since initiation.
Leading product and technology offerings
The lottery gaming landscape is changing, and we have positioned ourselves to not only assist our
customers through this change, but to lead the industry in adapting to this change. As a
marketing-driven organization, we believe that we lead the entire US lottery industry in re-examining
lottery gaming portfolios and conducting extensive portfolio analysis, each of which has enhanced our
product offering and our ability to earn new client wins.
We continue to set the pace for the industry as the recognized self—service leader. We have further
expanded our self-service portfolio and footprint, with Winstation30, the only vending terminal able to
dispense up to 30 instant tickets and Dreamtouch Smart, the first instant ticket vending terminal in the
market for purchasing unlimited draw-based games and up to 25 instant tickets while our multi-purpose
vending machines (which were previously deployed in four US States) have now been deployed in two
more States, bringing the total of self-service terminals deployed in the field to over 12.800. Years of
experience and constant feedback from the field of operations enabled INTRALOT to develop a modern
portfolio of high-end self-service terminals and software. INTRALOT’s self-service terminal solutions
represent a new, exciting sales channel for retail operators that bridge the gap between the online and
retail customers.
The most recent example of our ability to influence the mindset of our US Lottery customers is
undoubtedly the wide adoption of sports betting. We strongly pursue to convince our Lottery customers
to jointly implement and operate sports betting in the post-PASPA market landscape. For this
compelling, exponential growth opportunity we believe we are well positioned and equipped based on
our proven record of global deployment and operation expertise. Additionally, our latest INTRALOT Orion
solution, offers the needed adaptability to cover any US State regulation (retail only/mobile on
property/full mobile/omnichannel) and has been certified with the applicable US standard (GLI-33). It
is noteworthy that since 2020, we have an agreement with Major League Baseball to become an
Authorized Gaming Operator of MLB, which provides us with immediate access to MLB’s Official Data.
This agreement, coupled with our existing partnerships, will benefit our US State lottery customers and
their players by providing them with engaging sports betting experience on both retail and online
platforms. Moreover, in our effort to further tailor our sports betting offering for the US market and
player preferences, we have partnered with a specialized third party provider to offer new in-play, real
money betting micro-market betting opportunities for NFL, MLB, and NBA. Further to these initiatives,
within 1H21 we have established two important partnerships, the first with sports betting technology
supplier Algosport to provide us with its industry-best bet builder products for pre-match football and
in-play betting options across a variety of sports, and the second with game specialist Incentive Games,
to launch a collection of free-to-play games on INTRALOT’s betting products for the Montana and
Washington DC lotteries.
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
47
As proof of our sports betting capabilities, we are being recognized as the vendor of choice for lottery-
run ports betting in the United States, as we are engaged in the majority for such lottery ventures in
the country. Since the successful launch of Sports Betting in Washington DC and Montana in 2020, their
full year performance in 2021, proves our capability to successfully operate sports betting in the growing
US Sports betting market.
Financial Review
Financial Highlights
3
The strong revenue growth achieved from the provision of services (+26,1% y-o-y), contributing 97,6%,
has been offset by the lower value of merchandise sales (-59,8% y-o-y), contribution of 2,4%, thus
settling total revenue growth at +20,0% or +€69,1 million in 2021. US operations remain the dominant
force behind our revenue surge, signaling that our Group is well positioned to capitalize on its existing
US contracts, while our operations in Malta, Argentina, Australia, Turkey and Morocco have managed to
recover from the COVID-19 pandeminc implications. From an EBITDA performance perspective, we have
managed to sustain our cost containment initiatives and further boost our operating profitability margins
by generating an EBITDA growth of 66,9% or +€44,2 million compared to 2020.
Financial Data
4
(in € million)
FY 2021
FY 2020
%
Change
Revenue (Sale Proceeds)
414,0
344,9
20,0%
Licensed Operations
133,1
99,8
33,3%
Management Contracts
47,5
33,6
41,3%
Technology and Support Services
233,5
211,5
10,4%
GGR
335,3
285,4
17,5%
Gross Profit
119,4
73,2
63,2%
Gross Profit Margin (%)
28,9%
21,2%
+ 7,6pps
EBITDA
110,4
66,2
66,9%
EBITDA Margin on Sales (%)
26,7%
19,2%
+ 7,5pps
EBITDA Margin on GGR (%)
32,9%
23,2%
+ 9,7pps
Adjusted EBITDA
5
84,4
55,9
51,0%
EBT (Profit/(loss) before tax from continuing
operations)
37,1
(91,9)
n/a
EBT Margin (%)
9,0%
-26,6%
n/a
NIATMI (Profit/(loss) after tax attributable to the equity
holders of the parent company from continuing
operations)
26,6
(102,9)
n/a
3
For additional information on the Group’s performance, please also consult the Management Discussion and Analysis
Report published on our website.
4
The activities of Group subsidiaries in Poland (Totolotek S.A.), in Bulgaria (Bilot EOOD, Eurofootball Ltd, Bilot
Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd, ICS S.A.), in Brazil (Intralot do Brazil Ltda) and Peru (Intralot de
Peru SAC) are presented as discontinued operations pursuant to IFRS 5 (note 2.31.A.VIII).
5
Calculated as Proportionate EBITDA of fully consolidated entities including EBITDA from equity investments in
Taiwan.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
48
Revenue, GGR, EBITDA, EBT and NIATMI
Reported consolidated revenue posted an increase compared to FY20, leading to total revenue for the
twelve-month period ended December 31, 2021, of €414,0 million (+20,0%).
• Lottery Games was the largest contributor to our top line, comprising 61,2% of our revenue,
followed by Sports Betting, contributing 17,2%, to Group turnover. Technology Contracts
accounted for 12,0% and VLTs represented 9,1% of Group turnover, while Racing constituted
0,5% of total revenue for FY21.
Reported consolidated revenue for the twelve-month period is higher by €69,1 million year over year.
The main factors that drove top line performance per Business Activity are:
• €+33,2 million (+33,3%) from our Licensed Operations (B2C) activity line, with the increase
attributed to higher revenue in Malta (€+17,9 million or +23,1% y-o-y; mainly COVID-19
impact) and Argentina (€+15,4 million or +68,9% y-o-y; driven by local market growth and
COVID-19 impact).
• €+22,0 million (+10,4%) from our Technology and Support Services (B2B/ B2G) activity line,
with the increase attributed to US operations (€+16,6 million; revenue from services exhibited
+18,5% y-o-y), Australia (€+4,5 million; mainly COVID-19 impact), Croatia (€+2,7 million;
driven by the implementation of the lottery solution in Hrvatska Lutrija), and a negative impact
in other jurisdictions (€-1,8 million; due to merchandise sales).
• €+13,9 million (+41,3%) from our Management (B2B / B2G) contracts activity line, with the
increase driven by Bilyoner in Turkey (€+6,6 million; ongoing online market growth), Morocco
(€+3,9 million; market growth and COVID-19 impact), and US Sports Betting in Montana and
Washington D.C. (€+3,3 million).
Gross Gaming Revenue (GGR) from continuing operations posted an increase of 17,5% (€+49,9
million to €335,3 million) year over year, driven by:
• the increase in the non-payout related GGR (€+39,4 million vs. FY20), following mainly the
increased top line contribution of our Management contracts in US, Turkey and Morocco, and
• the increase in our payout related GGR (€+10,5 million vs. FY20), driven mainly by the COVID-
19 impact across our Licensed Operations
6
in Malta and Argentina. FY21 Average Payout Ratio
7
was higher by 0,9pps vs. LY (61,3% vs. 60,4%), primarily due to Malta’s weighted contribution.
Total Operating Expenses ended higher by €9,2 million (or +10,0%) in FY21 (€101,6 million vs. €92,4
million). Excluding the increased D&A expenses (€6,9 million) in Turkey, where Bilyoner renewed its
license until 2029, and Morocco, amended its license depreciation useful life to match the new contract
6
Licensed Operations Revenue also include a small portion of non-Payout related revenue, i.e. value-added services,
which totalled €4,7m and €1,2m for FY21 and FY20 respectively.
7
Payout ratio calculation excludes the IFRS 15 impact for payments to customers.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
49
termination date, Operating Expenses ended higher by €2,4 million as a result of the improved top-line
performance across all regions, offsetting the continued cost savings at HQ level.
Other Operating Income from continuing operations ended at €21,6 million, presenting an increase
of 23,8% y-o-y (or €+4,2 million), driven by higher equipment lease income in the USA.
EBITDA
8
from continuing operations amounted to €110,4 million in FY21, posting an increase of 66,9%
(or €+44,2 million) compared to FY20. The main drivers underpinning this performance are attributed
to the strong growth in our US operations (primarily due to increased players’ spending), the recovery
from COVID-19 related slowdown, the boosted performance in Turkey and Argentina, and the
continuation of our cost containment initiatives.
On a yearly basis, EBITDA margin on sales improved to 26,7% (+7,5pps from 19,2% in FY20)
following a strong top line performance accompanied with ongoing cost savings initiatives.
Adjusted EBITDA presented a year over year increase of 51,0%, concluding to €84,1 million, from
€55,9 million in FY20.
Earnings before Tax in FY21 totaled €37,1 million, compared to €-91,9 million in FY20, with the key
drivers of the improvement being:
• the improved results from participations and investments (€+49,0 million y-o-y), depicting the
gain from the balance sheet optimization transaction that concluded within 3Q21 (gain of €43,0
million from the exchange of 34,27% of the share capital of Intralot US Securities B.V., indirectly
parent company of Intralot Inc., with the bondholders of 2024 SUNs contolling €118,2 million
of its nominal value),
• the gain arising from the balance sheet optimization transaction recorded in interest income
(€+45,8 million y-o-y),
• the impact of the increased EBITDA (€+44,2 million vs. FY20),
• the better FX results (€+7,5 million vs. FY20), as a result of the valuation of cash balances in
foreign currency other than the functional currency of each entity, the valuation of commercial
and borrowing liabilities of various subsidiaries abroad in EUR, as well as the positive effect from
the reclassification of FX reserves to Income Statement applying IFRS 10,
• the benefit from lower losses due to asset impairments (€+4,7 million y-o-y),
• the improved share of net results from the equity method consolidation of associates (€+1,7
million vs. FY20), attributable to the non-consolidation of associates’ losses in Asia, following
their impairment in the previous year as a result of the COVID-19 pandemic.
With the increase at EBT level being partially offset by:
• the higher interest expenses in FY21 following the settlement of the balance sheet optimization
transaction (€-11,0 million vs. FY20),
• the higher capital structure optimization expenses in FY21 (€-10,4 million vs. FY20), and
8
Analysis in the EBITDA section excludes Depreciation & Amortization, and expenditures related to capital structure
optimization.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
50
• the higher D&A (€+3,1 million y-o-y), mainly due to Bilyoner and Morocco.
NIATMI (Net Income After Tax and Minority Interest) from continuing operations in FY21 concluded at
€26,6 million, compared to €-102,9 million in FY20. NIATMI from total operations in FY21 amounted to
€17,5 million (higher by €123,5 million vs. a year ago), including the performance of the discontinued
operations (Poland, Bulgaria, Peru and Brazil).
Cash Flow & Net Debt
Statement of Financial
Position/Cash Flows
(in € million)
FY21
FY20
Total Assets
605,5
648,9
Total Equity
-115,5
-216,8
Cash & Cash Equivalents
107,3
100,0
Partnerships
9
9,7
13,8
All other Operating Entities
(with revenue contracts) &
Headquarters
97,7
86,2
Net Debt
497,2
651,1
FY21
FY20
Operating Cash Flows
107,6
44,5
Net Capital Expenditure
-22,9
-35,9
Operating Cash-flow in FY21 amounted to €107,6 million, increased by €63,1 million, compared to
FY20. Excluding the operating cash-flow contribution of our discontinued operations (mainly Bulgaria
and Brazil), the cash-flow from operating activities is higher by €64,8 million vs. a year ago and is
largely driven by the higher recorded EBITDA y-o-y from continuing operations (€+44,2 million) and
the positive variance in Income Tax flows (€+18,3 million), attributed to Income Tax returns during the
current period vs. payments in FY20.
Adjusted Free Cash Flow
10
in FY21 increased by €64,7 million to €59,6 million, compared to €-5,1
million a year ago. The main contributors to this variance were the higher recorded EBITDA (€+44,2
million y-o-y) and the positive swing in the Income Tax flows (€+18,3 million), attributed to the Parent
company, following an income tax return in 1Q21 vs. payments in the prior period – tax audit driven.
On a quarterly basis, Adjusted Fee Cash Flow concluded at €26,9 million, higher by €9,9 million vs.
4Q20, mainly due to the higher recorded EBITDA (€+6,9 million y-o-y), the positive swing in the Income
Taxes Paid (€+1,4 million), and the lower dividends paid by €1,2 million.
9
Refers to stakes in Turkey (Bilyoner) and Argentina
10
Calculated as EBITDA – Maintenance CAPEX – Cash Taxes – Net Cash Finance Charges (excluding refinancing
charges) – Net Dividends Paid; all finance metrics exclude the impact of discontinued operations.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
51
Net Capex in FY21 was €22,9 million, lower by 36,2% compared to Net CAPEX of €35,9 million in FY20.
Headline CAPEX items in FY21 include €2,7 million towards R&D and project pipeline delivery, €12,7
million in the US, €1,9 million towards Bilyoner’s contract renewal and €1,2 million investment for
Croatia’s new contract. All other net additions amount to €4,4 million for FY21. Maintenance CAPEX
accounted for €10,9 million, or 47,6% of the overall capital expenditure in FY21, from €7,6 million or
21,2% in FY20.
Net Debt, as of December 31st, 2021, stood at €497,2 million, decreased by €153,9 million compared
to December 31st, 2020 (€651,1 million). The Net Debt movement was impacted primarily by the
successful deleverage (€-162,5 million) following the completion of the agreement with our noteholders
for balance sheet optimization purposes, the normal course of business (€-33,3 million), the Net
Investments (€-10,3 million, referring mainly to Intralot de Peru SAC sale impact), as well as an income
tax return in the first quarter of 2021 related to the Parent Company tax audit payments of the previous
periods (€-5,2 million). The Net Debt decrease was only partially offset by the payments towards the
Capital Structure Optimization (€+33,5 million, incl. the redemption fees recorded in interest and similar
charges paid), other debt related movements (€+16,0 million), and the investments towards the growth
of our business, mainly for R&D and our projects in the US and Croatia (€+7,8 million).
Cash and cash equivalents at the end of FY21 increased by €7,3 million vs. FY20.
The Group’s financial covenant with respect to Net Debt to EBITDA (Leverage ratio) is:
Financial Covenants
FY 2021
Leverage ratio
4,50
Our Key Gaming Markets Performance
11
United States and Canada
In the United States, we provide technology and support services to state lotteries through our wholly
owned subsidiary Intralot Inc., which was established in December 2001. We are one of the only three
vendors who hold contracts with the state lotteries for the supply of online gaming systems, retailer
communication networks, and point of sale equipment, such as terminals and vending machines. We
became the first non-U.S. company to win a tender for the supply of lottery systems, when we won a
contract to supply the Nebraska state lottery in 2003. Intralot Tech, a 100% subsidiary of Intralot Inc.,
was established in 2019 as USA’s development hub in Greece, and complements its existing central
functions in Atlanta and Mason, while diminishing the reliance of Intralot Inc. from the HQ functions,
11
Financial figures refer to the subsidiaries’ contribution to the Group and exclude non-operating entities in each of
the countries presented.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
52
therefore enhancing its delivery capabilities, targeting to retain and enhancing the quality of the existing
services offered in the US jurisdiction.
In the continental US, we currently operate 12 contracts in 12 states, holding contracts for the supply
and operation of online lottery gaming systems in Illinois, Ohio, Louisiana, Arkansas, New Hampshire,
Idaho, Vermont, Wyoming, Montana, New Mexico and Washington, D.C. We also hold a contract for the
provision of central monitoring services for more than 29.000 Coin Operated Amusement Machines in
Georgia. In Ohio, in addition to providing the central systems, terminals, equipment, vending machines
and retailer network communications, we also provide central monitoring services for seven racinos
operating video lottery terminals (VLTs). Furthermore, in May 2019 INTRALOT entered in the Canadian
market through a new contract with the British Columbia Lottery Corporation, which operates lottery on
behalf of the Government of British Columbia, for the provision of software, hardware and support
services.
2020 marked the year where INTRALOT broke ground in the newly regulated and prominent US Sports
Betting market. In early May, “Sports Bet Montana” in Montana of USA was launched. INTRALOT
deployed in Montana its new INTRALOT Orion sports betting platform to enable the Montana Lottery’s
sports wagering self-service terminals and mobile sports wagering offering. In addition, INTRALOT
provides to the Montana Lottery a complete suite of services, such as Managed Trading and Marketing
Services (MTMS) and Customer Support (CS). Then, in early June, the Digital Sports Betting solution in
Washington, DC, was also launched. INTRALOT, as part of its current contract with the DC Lottery,
deployed its new INTRALOT Orion sports betting platform to enable the GambetDC mobile and desktop
sports betting offering. A third Sport Betting launch, that of New Hampshire, is expected to go live within
2022. Towards strengthening its US Sports Betting offering, INTRALOT Inc. signed an agreement with
Major League Baseball (MLB) to become an Authorized Gaming Operator of MLB, just in time for the
start of 2020 60-game regular season. The new deal provides INTRALOT Inc. with immediate access to
MLB’s Official data, marks, and logos for its Sports Wagering platforms.
We have a strong track record in renewing and extending our contracts in the US, thus securing a long-
term presence in the country. More specifically, in July 2018, Intralot announced a five-year extension
to its current gaming systems contract with the New Hampshire Lottery Commission, through June
2025, while in late November 2019, a contract extension was signed for the provision of Sports Betting
solutions to the New Hampshire Lottery Commission. Furthermore, in November 2018, we renewed our
contract with the New Mexico Lottery for 2 more years, up to November 2025. In October 2020, a
contract extension was signed through 2029 to continue Intralot Inc.’s six-year partnership with the
Georgia Lottery Corporation, providing advanced services for the operation of its COAM (Coin Operated
Amusement Machines) project. One more development as per contracts extension was realized in June
2021, with the renewal of the existing contract with the Ohio Lottery Commission until June 2023.
Additionally, in late 2021, Intralot Inc. renewed the current contract with the Wyoming Lottery until
August 2029. Recently, Intralot Inc. has renewed its existing contract with the Washington D.C. Lottery
for 5 years, with a 5-year extension option. The new contract is effective since October 2019 and Intralot
will continue to supply the Washington D.C. Lottery with its Lotos gaming and instant ticket management
system, as well as support the Lottery’s opening to the regulated Sports Betting wagering market. Last
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
53
but not least, in October 2021, INTRALOT announced that its U.S. subsidiary, INTRALOT, Inc., signed a
contract extension with the Vermont Lottery, up to September 2022.
In 2021, our sales in the United States and Canada reached €152,3 million, posting a significant increase
of 14,6%, over the prior year, when our revenue amounted to €132,8 million. This over-performance is
mainly attributed to the strong growth of Lottery and VLT segments, as well as the higher revenue
contribution of our new sports betting contracts in Montana and Washington D.C., which fully absorbed
the lower merchanise sales and the effect from the adverse USD movement (3,5% Euro appreciation
versus a year ago – in YTD average terms). Revenue of the United States and Canada for the twelve
months ended December 31, 2021 stands for the 36,8% of the Group’s total revenue.
Key Consolidated Financial Figures
12
FY 2021
FY 2020
Δ%
(in € million)
Revenue
152,3
132,8
14,6%
GGR
152,3
132,8
14,6%
EBITDA
74,6
51,6
44,8%
CAPEX (Paid)
13,1
13,8
-4,7%
Key Standalone Balance Sheet Figures
FY 2021
FY 2020
Intralot Inc
(in € million)
Assets
265,9
236,1
Liabilities
263,1
98,4
Cash – Cash Equivalents
45,2
10,2
DC09 LLC
(in € million)
Assets
10,1
8,9
Liabilities
17,6
15,3
Cash – Cash Equivalents
2,8
2,0
Intralot Tech
(in € million)
Assets
0,6
1,0
Liabilities
0,2
0,9
Cash – Cash Equivalents
0,1
0,3
12
US Income Statement and CAPEX figures exclude the impact of the Philippines project that is consolidated under
Intralot Inc.; Standalone Balance Sheet figures on the other hand, include the impact of the Philippines business.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
54
Greece
In Greece, we provide technology support and support services for the operation of private gaming and
the lottery through INTRALOT S.A., our parent company. Originally incorporated in Athens in 1992, we
won our first domestic contract in 1993. We currently operate three contracts in Greece.
As the center of our Global operations, Greece is also home to our betting-trading center that controls
our global fixed odds betting activity, and significant research and development programs (Technology
Hub), as well as our corporate Headquarters which supports the wider INTRALOT ecosystem, employing
approx. 480 employees at the end of December 31st , 2021. As such, Headquarters expenses serve the
different projects of INTRALOT S.A, including among others the Greek projects, but the majority of the
effort is distributed towards servicing and supporting the pipeline of won and upcoming contracts, as
well as supporting INTRALOT’s subsidiaries and R&D efforts.
Our relationship with Greek Organization of Football Prognostics S.A. (OPAP) began in 1999. On July
31st, 2018, the old OPAP contract ended, and the two parties continue their cooperation under a new
contract, specifically in the field of numerical lotteries games, resulting in a smaller contract value due
to the limited scope. The new contract is a 3-year contract that also includes an option for OPAP to
renew for an additional two years. On January 14th, 2021, INTRALOT announced the extension of its
partnership with OPAP. More specifically, OPAP exercised its two-year extension option of the contract
with INTRALOT for the continuation of the collaboration of the two companies in the field of numerical
lotteries and services from August 2021 to July 2023. Furthermore, on December 2, 2021, we extended
our current contract with OPAP for an additional year, up to 31st of July 2024. These extensions allow
INTRALOT to continue providing its state-of-the-art Lottery Solution, that incorporates its novel core
platform “LotosX”, launched with great success in 2019, along with several other components and high-
quality services.
On July 26, 2013, in connection with our participation in a joint venture for a 12 year concession for the
management of the Hellenic State Lotteries in Greece, we also signed a set of contracts with the joint
venture (the company Hellenic Lotteries S.A. which was incorporated by the consortium members) to
provide the IT infrastructure, technical services and logistics to operate the Hellenic State Lottery Tickets
and also a contract to develop and manage a new sales network for selling the Hellenic State Lottery
Tickets. INTRALOT also signed an amendment to its existing services provision agreement with Hellenic
Lotteries S.A. under renegotiated terms and conditions, in the second half of 2019. In mid-September
2019, INTRALOT finalized the disposal of its shares in Hellenic Lotteries S.A. to “OPAP Investment
Limited”, for a price of €20,0 million.
In the first half of 2021, INTRALOT sold its 20% stake in Intralot de Peru SAC for a cash consideration
of USD21 million to Nexus Group, along with a three-year extension of its current contract with Intralot
de Peru SAC through 2024, related to the provision of gaming technology and support services. The net
cash consideration, after taxes and transaction expenses, amounted to USD16,2 million.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
55
Revenue from Greek operations in 2021 was €13,4 million, compared to €14,0 million in the prior year,
accounting for 3,2% of the Group’s total revenue in the twelve months ended December 31, 2021. The
top line deficit in 2021 is primarily impacted by lower rendering of services and merchandise sales.
Key Consolidated Financial Figures
FY 2021
FY 2020
Δ%
(in € million)
Revenue
13,4
14,0
-4,4%
GGR
13,4
14,0
-4,4%
EBITDA
-28,1
-29,4
-4,2%
CAPEX (Paid)
1,9
10,2
-81,0%
Key Standalone Balance Sheet Figures
FY 2021
FY 2020
INTRALOT SA
(in € million)
Assets
344,5
371,4
Liabilities
306,9
363,6
Cash – Cash Equivalents
8,3
8,0
Intralot Services SA
(in € million)
Assets
0,3
0,4
Liabilities
0,0
0,0
Cash – Cash Equivalents
0,0
0,1
Betting Company SA
(in € million)
Assets
6,3
6,5
Liabilities
2,4
3,1
Cash – Cash Equivalents
0,4
0,7
Intralot Interactive
(in € million)
Assets
0,1
0,8
Liabilities
0,1
0,7
Cash – Cash Equivalents
0,1
0,4
Argentina
In Argentina, we provide technology support and support services mainly for the operation of lottery
games and sports betting in 10 of the 23 jurisdictions in the country, and we are the lottery operator
for the Province of Salta. We entered the market when we acquired a majority stake (50,01%) in our
subsidiary Tecno Accion in 2007. We facilitate approximately 7.400 terminals throughout Argentina and
operate approximately 800 terminals in Salta.
Through Tecno Accion, we offer integrated technology solutions for lottery organizations, such as
portable terminals, provide gaming software and trade management systems and communication
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
56
consultancy. In Salta, we act as the sole lottery operator in the province, with 13 numerical games. Our
partners in Tecno Accion are HAPSA, the operator of horse racing (and CASINO HAPSA) in Buenos Aires,
and the Inverclub, which manages casinos.
Our revenue from the Argentina facility management business in 2021 reached €16,7 million, versus
€11,3 million in 2020. The lottery operator business generated sales of €37,7 million in 2021, compared
to €22,3 million in 2020, posting an increase of +68,9%, mainly impacted by local market growth as
well as the COVID-19 pandemic in the previous year. Our total revenue in Argentina for 2021 was €54,3
million compared to €33,6 million during the same period last year. Argentina' s revenue in the twelve
months ended December 31, 2021 represented 13,1% of INTRALOT Group’s total revenue.
Key Consolidated Financial Figures
13
FY 2021
FY 2020
Δ%
(in € million)
Revenue
54,3
33,6
61,6%
GGR
34,5
20,8
65,6%
EBITDA
13,3
7,9
69,5%
CAPEX (Paid)
1,0
0,4
126,9%
Key Standalone Balance Sheet Figures
FY 2021
FY 2020
Tecno Accion SA
(in € million)
Assets
12,2
9,4
Liabilities
4,3
3,3
Cash – Cash Equivalents
1,2
1,9
TecnoAccion Salta SA
(in € million)
Assets
4,7
2,3
Liabilities
2,2
1,0
Cash – Cash Equivalents
2,3
1,2
Oceania
We originally entered the Australian market in 2006, where we currently provide technology and support
services in two jurisdictions through our wholly owned subsidiaries Intralot Australia Pty Ltd and Intralot
Gaming Services Pty Ltd.
In Victoria, IGS supplies a remote monitoring system to control over 26.000 gaming machines under a
15 year contract signed in September 2011 with the State of Victoria. Our monitoring system is designed
to ensure the accurate and uninterrupted monitoring of gaming machine transactions, single and
multiple venue linked jackpot arrangements, and the capture of data and information with respect to
gaming machines for regulatory, taxation, research and related purposes. In addition, conformance with
13
Argentina figures have been restated based on IAS 29 (Financial Reporting in Hyperinflationary Economies) as to
reflect current purchasing power.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
57
the state wide pre commitment system (PCS) has been in place since December 2015 and has increased
the monitoring of revenue substantially. IGS will operate the pre commitment scheme up to the end of
the monitoring license referred above, which expires in August 2027.
In Western Australia, we provide the information technology and systems support for the Lotteries
Commission of Western Australia (Lotterywest), in order to enable Lotterywest’s retail and online gaming
sales, through our wholly owned subsidiary Intralot Australia Pty Ltd. Since 2014, we have provided
support services for Lotterywest in its Retail Transformation Program (RTP) and secured an extension
of our ongoing contract till 2026.
In New Zealand, we provide technology and support services through our wholly owned subsidiary
Intralot New Zealand Ltd Operations, which was first awarded the government contract in 2005. To the
government we provide an electronic monitoring system to link approximately 16.000 electronic gaming
machines (EGMs) in more than 1.100 locations. The electronic monitoring system is designed to
guarantee the integrity of games and limit opportunities for fraud. Our contract was extended in 2016
up to 2022, while in 2020 was further extended up to 2025 with a one-year extension option.
Additionally, in 2010 we were awarded the development and operation of an Integrated Gambling
Platform responsible for electronic licensing with the contact ended in February 2021.
Revenue for 2021 from our Oceania operations has increased by +24,0%, amounting to €18,9 million,
versus €15,3 million in 2020. The increase in Oceania’s revenue mainly depicts the lower COVID-19
related impact in current year results versus the prior year. Revenue recovery fully absorbed a one-off
merchadize sale in 1Q20 and the negative impact in New Zealand (-19,3%, on revenues) from the
contract end of Integrated Gambling Platform in February of the current year. Revenue from our Oceania
operations in the twelve months ended December 31, 2021, represented 4,6% of INTRALOT Group’s
total revenue.
Key Consolidated Financial Figures
FY 2021
FY 2020
Δ%
(in € million)
Revenue
18,9
15,3
24,0%
GGR
18,9
15,3
24,0%
EBITDA
12,6
8,9
41,2%
CAPEX (Paid)
1,0
2,2
-54,4%
Key Standalone Balance Sheet Figures
FY 2021
FY 2020
Intralot Gaming Services Pty Ltd (IGS)
(in € million)
Assets
12,3
14,6
Liabilities
7,3
8,0
Cash – Cash Equivalents
2,1
0,2
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58
Intralot Australia PTY Ltd
(in € million)
Assets
6,5
7,4
Liabilities
0,9
2,1
Cash – Cash Equivalents
0,7
2,4
Intralot New Zealand Ltd
(in € million)
Assets
2,0
2,2
Liabilities
0,9
1,1
Cash – Cash Equivalents
0,8
0,8
Turkey
In Turkey, we currently own approximately 50,01% of Bilyoner, one of the leading online distributors of
sports betting games in Turkey. Bilyoner, along with five other online providers, distributes the games
of Spor Toto. Bilyoner was established in 2003 and had approximately 4,2 million registered players as
of December 31, 2021. Bilyoner’s license agreement has been renewed and is valid till August 2029.
Bilyoner’s revenue increased to €27,8 million in 2021, from €20,7 million over the same period last
year, favored by the continued growth of the online market. In FY21, the Sports Betting market
expanded 1,7 times y-o-y, with the online segment representing close to 89,0% of the market.
Bilyoner’s operations were adversely affected by the local currency devaluation (30,5% Euro
appreciation versus a year ago – in average YTD terms). In Turkish Lira terms, Bilyoner’s revenue
showcased a +75,4% increase versus 2020 (in Euro terms Bilyoner’s revenue increase by +34,6%).
Bilyoner’s revenue represented 6,7% of INTRALOT Group’s total revenue for the twelve months ended
December 31, 2021.
Key Consolidated Financial Figures
FY 2021
FY 2020
Δ%
(in € million)
Revenue
27,8
20,7
34,6%
GGR
27,8
20,7
34,6%
EBITDA
12,7
7,8
63,6%
CAPEX (Paid)
1,9
0,5
301,0%
Key Standalone Balance Sheet Figures
FY 2021
FY 2020
Bilyoner AS
(in € million)
Assets
44,5
17,1
Liabilities
40,5
11,4
Cash – Cash Equivalents
6,2
10,6
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Morocco
We founded Intralot Maroc S.A. in 2010, with 100% of shares held by INTRALOT S.A. Intralot Maroc
supports the operation of all games of the Moroccan lottery Marocaine des Jeux et des Sports (MDJS).
The lottery operates a broad gaming portfolio that ranges from sports betting and numerical games, to
instants and fast draw entertainment games, with a distribution network of over 1.400 points of sale
throughout Morocco.
Intralot Maroc has been offering its products and services to MDJS since 2010 and had an effective
contract of an 8-year term, effective of January 1, 2020. Following the contract amendment in March
2021, the counterparties initially agreed to reduce the duration of the contract, ending 31/12/2022,
aiming to enhance resilience in the context of the COVID-19 pandemic repercussions on the overall
lottery market. Recently, Intralot Maroc extended the existing contract with MDJS for an additional year,
up to December 2023. INTRALOT Maroc will continue to support MDJS with the overall management
and operation of its lottery, sports betting, and other games activities.
In 2021, Intralot Maroc generated revenue of €14,3 million, while in 2020 the respective revenue
amounted to €10,4 million. The improved performance is attributed to the organic growth of local market
coupled with the adverse impact from COVID-19 in FY20. Our total revenue from Morocco for the twelve
months ended December 31, 2021, consisted 3,5% of our Group’s total revenue.
Key Consolidated Financial Figures
FY 2021
FY 2020
Δ%
(in € million)
Revenue
14,3
10,4
37,7%
GGR
14,3
10,4
37,7%
EBITDA
3,0
-1,7
n/a
CAPEX (Paid)
1,0
0,8
28,0%
Key Standalone Balance Sheet Figures
FY 2021
FY 2020
Intralot Maroc SA
(in € million)
Assets
10,5
31,6
Liabilities
33,6
52,5
Cash – Cash Equivalents
1,2
1,3
Malta
We entered the lottery market of Malta in 2004, when we were awarded an eight year exclusive license
to operate all state lottery games. For this project, we established the subsidiary Maltco Lotteries
Limited, in which we own a 73,0% stake. In 2012, upon the expiration of this license, Maltco was
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60
awarded a new ten year concession and a license to operate the national lottery of Malta through a
competitive tender process.
Currently we operate numerical games (the two national lottery games: Super 5 and Lotto), fixed odds
betting, both pre-game and live, a KENO game, a Bingo 75 and a Fast Bingo game, four horse racing
games and instant tickets, in a network of approximately 220 POS.
The revenue of Maltco Lotteries in 2021 reached €95,4 million, posting an increase of +23,1% versus
prior year’s revenues of €77,5 million, with the variance attributable mainly to the COVID-19 impact in
FY20. Revenue net of gaming payout follows the same trend, reaching €36,5 million in 2021, compared
to €30,8 million in 2020. Our total revenue from Malta for the twelve months ended December 31, 2021,
represented 23,0% of INTRALOT Group’s total revenue.
Key Consolidated Financial Figures
FY 2021
FY 2020
Δ%
(in € million)
Revenue
95,4
77,5
23,1%
GGR
36,5
30,8
18,7%
EBITDA
12,0
10,6
13,1%
CAPEX (Paid)
0,3
0,1
410,7%
Key Standalone Balance Sheet Figures
FY 2021
FY 2020
Maltco Lotteries Ltd
(in € million)
Assets
21,1
24,2
Liabilities
8,6
8,7
Cash – Cash Equivalents
16,8
14,7
Regarding the tender for the concession rights of the National Lottery of Malta, where our subsidiary
Maltco Lotteries Ltd operates, "National Lottery plc" was announced as the preferred concessionaire.
Looking Ahead
The lottery and sports betting industries, following the ease of the COVID-19 pandemic measures in
2021 have gradually returned to their pre-pandemic performance and growth trejectories. Both
industries are today presenting significant growth opportunities, mainly enabled by the value that has
been unlocked by new technologies and the wide adoption of online services, which have advanced
significantly in the course of the pandemic. Digital technology evolution, in combination with regulatory
initiatives towards market liberalization and regulation of previously restricted forms of gaming, as well
as the change of player demographics and their spending habits and digital adoption as influenced by
new technologies, all set the pace of accelerated change.
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In this environment, INTRALOT is well equipped and best positioned to succeed, targeting to reap the
fruits of its digital transformation strategy. Leveraging its well-earned position as a global leader in
Lottery and Sports Betting technology as well as end-to-end services, INTRALOT has sharpened its
strategic focus in order to capitalize on the unrealized value it has created over the years. Technology
will be the key enabler towards business innovation. This is, after all, a reality introduced by the 4th
industrial revolution that is nowadays blurring the line between the digital and physical worlds. Our
technology is not only highly innovative, but it is also easily scalable, interoperable and extensible,
welcoming all 4th industrial revolution enablers. Seamless omni-channel player experiences, cost
optimization, fast time-to-market, market reactiveness and all other drivers of increased sales and
profitability can be enhanced by using our technology as an enabler.
Having said that, INTRALOT’s realigned organization structure encompasses a technology division with
enhanced delivery capacity and a customer centric service provision organization, backed by a strong
finance division and a robust commercial arm.
In 2022 we are looking forward to further engagements for deploying our new Lotos X and INTRALOT
ORION platforms coupled with our industry-best terminal solutions , and to benefit from the industry
traction of our latest iLottery solutions fueled by our enhanced online capabilities. We expect further
industry recognition of our technologies, such as the Lottery Product of the Year Award for our Photon
X terminal and the shortlisting of our Orion Platform in Global Gaming Awards which were received the
previous years. We anticipate to achieve economies of scale in 2022 and beyond, as our products
become mature and are increasingly deployed over cloud infrastructures resulting in recurring savings
of our cost base.
In the US lottery market, which has become a key part of our future growth strategy, we look to
capitalize on our position and strengths of our strategic INTRALOT Inc subsidiary. To this end, we
strongly pursue to implement and operate sports betting for our Lottery customers and beyond, and our
performance in Washington DC and Montana, proves our capability to successfully operate sports betting
in the growing US Sports betting market, as Sportsbetting legislation advances in more States in which
we are currently present and the post COVID-19 Lottery market shows strong signs of positive structural
changes through new player behavior and preferences.
A primary enabler of sustainable growth is the further improvement of our capital structure in a way
that will be consistent with our strategy to create long-term value for all stakeholders of the company.
Our strong focus remains on our mission to best address the needs of our customers with state-of-the-
art products and services, especially in the promising times after the COVID-19 pandemic, and to
generate new free cash flows that will help us to drive a recovery from the effects of the COVID-19
pandemic, as well as set the tone for INTRALOT’s future journey.
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62
ENVIRONMENTAL, SΟCIAL AND GOVERNANCE MANAGEMENT
Scope
The following information related to the practices followed and results achieved on Environmental, Social
and Governance issues:
Refer to the period 1/1/2020-31/12/2021 (unless indicated otherwise in certain points).
Refer to all activities of INTRALOT S.A. (referred as ‘INTRALOT’ or ‘Company’), while further
references to selected activities of other companies within the INTRALOT Group (referred as
‘INTRALOT Group’ or ‘Group’) are presented (without being included in this scope).
Addresses all operations (hardware and software, game content, sports betting management,
online gaming and management, marketing services as well as licensed gaming operations in
its own right).
Committed to its corporate strategy of sustainable leadership in the gaming sector, INTRALOT strives
to create long-term shared value for all its Stakeholders. The Company continues to fulfill its promise
to customers and communities for sustainable growth by further deploying strategic and transparent
ESG principles, practices, and standards within its operations. The Company’s Sustainability strategy is
centered on five key Areas; Governance and Compliance, Employee Wellbeing, Responsible Gaming,
Environmental Impact and Societal Support.
For its operations, the Company utilizes inputs from its Suppliers (materials, equipment, services, and
know-how) as well as input from States and Regulatory Authorities (decisions and provisions for
regulation of local gaming market). INTRALOT is a licensed gaming operator in its own right in several
countries around the world and provides its products in the B2C market through its own sales networks,
which include internet-based channels and Points of Sale, following agreements with Retailers.
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Value Chain
Furthermore, as a leading partner and technology provider for licensed gaming operators worldwide in
the B2B market (e.g. hardware and software solutions, sports betting management, interactive gaming
services), INTRALOT cooperates with Business Partners to provide its products and services to licensed
gaming operators (Customers), in order for them to provide its games to Players. Throughout its value
chain, the Company remains committed to safeguard the interests of Shareholders, contribute to the
Local Communities, and reduce its impact on the Environment.
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Management Framework
INTRALOT’s management structure related to Corporate Responsibility is depicted below:
Corporate Responsibility Management
At Board level, the overall responsible is the Group Chief Executive Officer, who is the Chairman
of the BoD, without at the moment Corporate Responsibility issues being discussed with
Management during BoD meetings.
At C-Level, Group Deputy CEOs are responsible for the leadership and commitment on Corporate
Responsibility principles.
At Director level, the Group Corporate Affairs Director is responsible to organize the relevant
activities and review the Group’s Responsible Gaming program, as well as guide, plan,
implement and evaluate the Corporate Responsibility program and cooperate with other
departments. The Corporate Affairs Department manages the issue of Corporate Responsibility,
in order to streamline activities and facilitate the Company’s responsible operation, at a
strategic, organizational, and operational level.
The Corporate Affairs Director interacts with the Vice-President and Directors of Operations, as
well as other Divisions within the Company, at a local and global level, to facilitate respective
practices implemented.
BoD composition is shown in page 122, with Members being responsible overall to manage the
relationship with stakeholders, including taking their views into consideration in decision-
making. Note: Insert page number in Annual Report which shows BoD composition.
Following the results of an internal analysis and interaction with its Stakeholders, INTRALOT has
identified five strategic areas of Corporate Responsibility and has created the following Corporate
Responsibility Framework with the respective areas and related sub-areas, in order to systematically
organize and manage Corporate Responsibility issues.
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65
Corporate Responsibility Framework
INTRALOT has developed a Sustainable Development Policy to define its specific principles of responsible
operation towards its Stakeholders (e.g. employees, customers, society, environment) and outline its
commitments to:
Create economic value both for its shareholders as well as other Stakeholders.
Ensure business ethics.
Consider the environmental impacts of its products and services.
Promote innovation.
Monitor systematically its environmental footprint.
The Policy also describes actions implemented in relation to main areas of sustainable development,
and more specifically related to corporate governance, innovation and research, market and
customers, human resources, environment and society.
INTRALOT considers the recognition of its efforts related to responsible operation as an important
moral award, which also highlights the Company’s commitment to continue the relevant practices and
initiatives.
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Awards and Distinctions
Event/Authority
Type of
Award/Distinction
Category
Reason
2021
HR Awards 2021
(Boussias
Communications)
Silver Award
Excellence in
Performance
Management Strategy
/ Initiative
INTRALOT’s Continuous
Performance
Management
Bronze Award
Best Reskilling
Strategy
Company’s programs and
practices related to
continuous learning
Bronze Award
Excellence in
Leadership
Development
management
iLead Programme
Global Gaming Awards
London 2021
(Gambling Insider)
Shortlisted
Retail Supplier of the
Year
INTRALOT Orion sports
betting platform
2020
HR Awards 2020
(Boussias
Communications)
Gold Award
Best Team Building
Program
Strengthening employee
collaboration
Silver Award
Most Valued HR Team
Fast response to the
COVID-19 pandemic
Global Gaming Awards
London 2020
(Gambling Insider)
Shortlisted
Land-Based Product of
the Year
INTRALOT Orion sports
betting platform
Impact BITE Awards
2020
(Boussias
Communications)
Gold Award
New Technology
Trends in Cloud
Applications and
Services
Technology Excellence
International Gaming
Awards 2020
(Clever Duck Media)
Winner
Lottery Product of the
Year
PhotonX terminal
1. Stakeholder Engagement
INTRALOT has a large number of internal and external Stakeholders, who can be defined as all those
who are either affected by the Company’s operations or affect its operations. Since Stakeholders
increasingly require transparency and active involvement in issues, such as governance, societal
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67
support, and environmental protection, the Company is consistently committed to enhance its
Stakeholders’ engagement through a wide range of activities in order to ensure value creation. The
following table summarizes INTRALOT’s Stakeholders (who have been identified through the respective
departments), the methods of interaction with them as well as their main topics of interest.
Stakeholder Engagement
Governance
Responsible Internal Operation
The value of responsible operation is embedded in the way INTRALOT is managed, as the Company
adopts internal rules and regulations to govern its daily operations, such as the Internal Regulation
Charter, the Code of Corporate Governance and the Code of Conduct. At the same time, INTRALOT is
committed to comply with the respective legislation in all countries of operations.
Internal Regulation Charter: The Internal Regulation Charter regulates the structure of INTRALOT’s
Divisions, their responsibilities, and the relationship with each other and with INTRALOT’s
management as well as defines each statutory body’s responsibilities, duties, and obligations, under
the provision of the Company’s Articles of Association and the applicable legislation. It was equipped
in accordance with the Greek Legislation and the provisions of article 14 of Law 4706/2020 on
corporate governance. The Internal Regulation Charter is mandatory for the entire Company and all
partners who provide their services through an independent services contract. Its purpose is to outline
the framework of organization and operation of the Company in order to ensure the Company’s
compliance with the legislative and regulatory requirements, as well as the transparency and
efficiency in the decision-making of its administrative bodies.
The Internal Regulation Charter regulates:
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68
a) The organizational structure, the functions of the units, the committees of the Company, as well as
the duties of their directors and their direct reports.
b) The report of the main characteristics of the Internal Control System, meaning the operation of the
internal control, risk management and regulatory compliance units.
c) The process of hiring top management executives and evaluating their performance.
d) The process of compliance applying to people exercising managerial duties, as defined in number 25
of par. 1 of article 3 of Regulation (EU) 596/2014, and of people who have close ties with them, according
to the definition of par. 14 of article 2 of Law 4706/2020, which include the obligations deriving from
the provisions of article 19 of Regulation (EU) 596/2014.
e) The process of notifying the existence of dependent relations, according to article 9 of Law 4706/2020,
of the independent non-executive members of the Board of Directors and of the people who have close
ties with them.
f) The process of compliance with the obligations arising from articles 99 to 101 of law 4548/2018,
regarding transactions with related parties.
g) The policies and procedures that prevent and resolve cases of conflict of interest.
h) The policies and procedures for the compliance of the Company with the legislative and regulatory
provisions that govern its organization and operation, as well as its activities.
i) The procedure that the Company has for the management of privileged information and for the
disclosure of accurate information to the public, in accordance with the provisions of Regulation (EU)
596/2014.
j) The policy and procedure for conducting periodical evaluations of the Internal Audit System, in
particular, towards the adequacy and effectiveness of the financial information provided, on an individual
and consolidated basis. Also, ensures the risk management and regulatory compliance, according to the
recognized standards of evaluation and internal control, as well as the implementation of the provisions
on corporate governance of this law. This evaluation is carried out by people who have sufficient relevant
professional experience and who do not have dependency relationships according to par. 1 of article 9
of Law 4706/2020.
k) The training policy of the members of the board of directors, the top management team, as well as
the other executives of the Company, especially those involved in internal control, risk management,
regulatory compliance and information systems functions.
l) The sustainable development policy applied by the Company, where applicable.
Obliged to comply with the Internal Regulation Charter are:
• The members of the Board of Directors,
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• The Chief Executive Officer, the Deputy Chief Executive Officer, the Executive Vice President,
the Group Chiefs, the Vice-Presidents, the Group Directors, the Directors and the Heads of
Departments,
• All of the Company’s employees.
• The associates of the Company who provide their services with a service/consultancy contract
or paid on a project basis, provided that it is explicitly mentioned in their agreement that they
should comply with the Internal Regulation Charter.
Code of Corporate Governance: INTRALOT adopts the modern principles of Corporate Governance,
a system of laws, rules, procedures and good corporate governance and control practices, in accordance
with the current Greek legislation and the international best practices. Our Corporate Governance
policies aim to safeguard the rights of our shareholders and the interests of all stakeholders, with
transparency and a high sense of responsibility in the decision-making process, effective internal and
accounting controls, proper financial risk management, as well as the disclosure of timely and accurate
information to any interested party.
INTRALOT’s Code of Corporate Governance documents the Company’s corporate governance practices
and is aligned with the Principles of OECD Corporate Governance published in 2004, the Hellenic
Federation of Enterprises’ (SEV) Code of Corporate Governance for Listed Companies and the generally
accepted corporate governance principles applied by European Union countries, in order to ensure
transparency in its operations and compliance with the relevant legislation and regulatory framework.
The Corporate Governance policies in place, reflect our firm commitment to the ethics and responsibility
that govern the decisions of our executives, in order to ensure not only the sustainable development of
the Company, but also the interest of our shareholders and all stakeholders in the long-term. The
Company has voluntarily adopted the Greek Corporate Governance Code 2021. The Code has been
posted on the company's website (www.intralot.com).
Code of Conduct: The Company’s Code of Conduct defines the way its Managers and employees behave
and foster relationships of trust with Stakeholders, business partners and other third parties on the
following issues:
Purpose
International Business Conduct
Information Security Policy Compliance
Social Media
Confidential Information
Protection and Use of Company Assets and Resources
Competition and Fair Dealing
Conflict of Interest
Corporate Opportunities – Innovations
Giving or Accepting Business Courtesies
Integrity/Probity
Corporate Travel Policy
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70
Information and Technology Resources
Relationships with Suppliers
Relationships with Clients
Relationships with Competitors
Environment
Health and Safety
Equal Employment Opportunity and Harassment Policies
Alcohol and Drugs
Violence Prevention
Reporting a Breach of the Code of Conduct
It must be noted that the Code of Conduct:
Is available to all employees through the corporate intranet portal and all employees have access to
a relevant training course through INTRALOT’s e-learning platform.
Has been communicated to all employees via email, including all new employees within the first week
of employment, who are also trained through the Classroom Corporate Induction Training program.
Is the subject of related briefings to employees.
Has been incorporated in all employee contracts and all employees have signed to acknowledge and
accept the Code’s principles and provisions.
Is mandatory for all Managers and employees of INTRALOT Group, its subsidiaries, and controlled
affiliates, regardless of contract type (permanent and temporary) and hierarchical level.
Furthermore:
Employees can direct any related questions and all employees are obliged to report any breach of
the Code of Conduct (including a conflict of interest or violation of the law) to the Human Resources
Department, by name or anonymously, either by telephone or e-mail. In all cases, INTRALOT protects
the confidentiality of anyone who reported a violation and the Company examines all cases of
potential breaches and violations of its principles.
In case anyone suspects that there is an actual or potential conflict of interest or could be reasonably
perceived by others as a conflict of interest, employees must report it to their Supervisor or their
Director, who will discuss with them to determine whether he/she actually has a conflict of interest
and, if so, how to best address it.
Anti-corruption: Being committed to operate transparently and ethically, INTRALOT:
Has included issues related to anti-corruption in its Code of Conduct (which has been acknowledged
and signed by all employees).
Has been certified according to ISO 37001 Anti-Bribery Management System for its measures to
prevent, detect, and address bribery, as well as ensure transparency in transactions, being one of
the few externally certified companies in the gaming industry worldwide.
Has signed a Memorandum of Understanding and became a member of the Business Integrity Forum,
an initiative launched by Transparency International - Greece network.
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Has developed an Anti-Corruption Policy, which highlights its principles on various issues, such as
corruption, procurement and bidding, merger and acquisition transactions, gifts and entertainment,
political contributions.
Employees can contact the Legal Department or the Head of the Business Unit and they can report any
concern about a potential bribery or corruption case to the Human Resources Department and the
Internal Audit Unit, by name or anonymously.
Furthermore, INTRALOT:
Has developed Anti-Money Laundering Guidelines to ensure that services offered via its global
operations are not used for money laundering purposes, which are mandatory for all employees. The
Company identifies and assesses potential anti-money laundering risks by its customers through
various measures, which include KYC approach (Know-Your-Customer), due diligence checks and
monitoring of gambling activity. In cases of an attempt to launder criminal proceeds, the Group does
not establish or immediately terminates the business relationship, with no such cases identified
during 2020-2021.
Includes anti-corruption contractual clauses in all agreements with suppliers to ensure compliance
with relevant anti-corruption laws, while such provisions are not included in contracts with customers,
since they are either State Lotteries or private companies licensed by the State.
Undertakes due diligence on its business partners (e.g. agents, consultants, suppliers, other
intermediaries, consortium or joint venture partners, contractors or major sub-contractors,
distributors) to assess corruption risk prior engaging in any business relationship and refrains from
any business activity in case due diligence findings are not satisfactory, which was initiated for 169
existing suppliers in 2020, as well as 185 existing and 16 new suppliers (all of whom were approved)
in 2021.
Performs detailed anti-corruption due diligence throughout mergers and acquisitions and includes
appropriate anti-corruption provisions prior to closing the respective transactions.
Follows a standard internal auditing procedure with at least annual audits to analyze business units
for risks associated with corruption and monitors certain areas with high risk for financial fraud.
Permits contributions to political parties, members of political parties and candidates for a public
office only in accordance with applicable local laws, Group’s Code of Conduct rules, public disclosure
requirements and prior written approval of the local Legal Department, the head of the local business
unit and the Group Chief Legal and Compliance Officer.
Indicator
2020
2021
Governance
Non-executive BoD members (%)
55,6
55,6
Independent non-executive BoD members (%)
33,9
33,9
Awareness
Employees briefed on the Code of Conduct (%)
100
100
Employees trained on the Code of Conduct (number)
115
38
Employees trained on anti-corruption and anti-bribery issues (%)
23
28
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72
Employees attending the annual Information Security awareness
program (number)
474
498
Compliance
Corruption incidents (number)
0
0
Bribery incidents related to employees (number)
0
0
Value of contributions made to politicians and political parties (€)
0
0
Violation cases concerning the Code of Conduct (number)
0
0
2. Risk Management
INTRALOT follows a holistic approach to identify, assess, and manage risks related to achieve its
business objectives and implements risk assessment and treatment at least annually according to its
Enterprise Risk Management (ERM) Framework, which is designed according to the specifications of
COSO (Committee of Sponsorship Organizations of the Treadway Commission) and ISACA (COBIT for
RISK).
Significant Risks and Uncertainties
Source
Impact
Policies and Practices
Financial Risks
Credit risk
Not significant
Pursue wide dispersion of customers.
Set credit limits through signed contracts.
Set limits on credit exposure to any
financial institution.
Adopt an internal rating system on credit
rating evaluation.
Liquidity risk
Significant
Develop policies to manage and monitor liquidity
to meet obligations.
Set a system to monitor and constantly
optimize operating and investing costs.
Foreign Exchange risk
Significant
Achieve diversification of currency portfolio.
Interest rate risk
Not significant
Have a balanced portfolio of loans with fixed
and floating borrowing rates.
High leverage risk
Moderate /
Significant
Set specific consolidated fixed charge coverage
and senior leverage ratio.
Operating Risks
Winners’ payouts in
sports betting (Depends
on the outcome of the
events)
Moderate
Establish a betting center in Greece to control
global fixed odds betting activity and payout policy
in real-time.
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Gaming sector and
economic activity
Moderate
Diversify portfolio through international expansion.
Reduce dependency on the performance of
individual markets and economies.
Gaming Taxation
Moderate
Monitor and evaluate changes in taxation.
Regulatory risk
Significant
Rely on government licenses.
Monitor changes in the regulatory environment.
Technological changes
Significant
Properly respond to technological changes.
Timely develop or license innovative and
appealing cost-effective products.
Invest in R&D to develop innovative products.
Emerging markets risk
Significant
Monitor social, political, legal, and economic
conditions in countries of operations.
Competition and margin
squeeze
Significant
Aim to renew long-term contracts.
Environmental Risk
Moderate
Identify best practices and implement
environmentally friendlier initiatives.
Reduce waste and improve recycling rates.
Reduce use of physical resources (e.g. paper, ink).
Measure the environmental impact.
Risk of COVID-19
pandemic
(Depends on its
duration, government
restrictions in key
jurisdictions and the
current and subsequent
economic disruption)
Moderate
Monitor closely the developments regarding the
pandemic.
Follow the guidance from local health authorities.
Observe requirements and actions implemented
by local governments.
Implement emergency plans to reduce
potential adverse effects on employees and operations.
INTRALOT has established personal data protection as a priority to ensure its responsible operation
towards its Stakeholders (e.g. players, customers, employees). Therefore, the Company has developed
a Privacy Data Protection Policy, which defines and documents various principles and rules, as well as
procedural and technical controls, in order to create a framework to protect private data collected,
maintained and processed. The Policy is the core component of the Company’s Data Protection
Framework, which combines Privacy Good Practices, its Enterprise Risk Management Framework for
managing related risk and for conducting Data Privacy Impact Assessments, as well as its Cyber and
Information Security Frameworks to identify Information Security needs, uphold Data Protection and
define Incident detection, response and recovery processes, in order to respect and protect the rights
of data subjects in a multidimensional manner. INTRALOT’s Data Protection Framework fully addresses
the requirements of the EU General Data Protection Regulation (GDPR), which has been adopted as a
minimum Privacy Standard for the entire INTRALOT Group. INTRALOT products and project development
strictly follow the respective policy for embedding privacy controls and security controls from their
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design phase (privacy by design) and INTRALOT implements a specific process for all employees to
immediately report any personal information violation to the highest corporate level (C-level).
3. Responsible Procurement
Despite the globalization of procurement, the Company continues to purchase a considerable amount of
products and services from local suppliers and prioritizes local suppliers, where possible.
The Company conducts a supplier financial and technical assessment for all key suppliers, except certain
procurement categories, such as legal expenses, hospitality expenses, rental services, transportation
expenses (taxis) and seminars, which evaluates their performance on the following main criteria:
Financial cost.
Quality specifications.
Time to delivery.
Indicator
2020
2021
Suppliers (number)
169
185
Social
1. Responsible Gaming
It is important that anyone who participates in games of chance understands the possible risks of the
entertainment they are buying and how they vary from one type of games to another. Players must
make their choices based on game aspects of the gaming service, know, and accept the odds and never
overestimate the chances of winning or try to recover losses by persisting to game beyond their means.
Therefore, Responsible Gaming is a concept to which gaming operators, technology and software
suppliers and associated service providers need to ensure that their products and services provide a fair
and safe gaming experience that enables players to protect from the adverse consequences of gaming
as well as apply practices to eliminate excessive behavior and protect vulnerable groups, such as
individuals under legal age of play, persons with a gaming addiction and individuals not aware of risks
of problem gaming.
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Responsible Gaming Approach
Besides being an ethical and regulatory requirement, Responsible Gaming is a business imperative for
gaming companies, who are required to comply with applicable Responsible Gaming frameworks and
implement specific measures and procedures to protect society and Stakeholders. As an Associate
member of WLA, INTRALOT abides by the WLA Responsible Gaming Framework, whose purpose is to
integrate the Responsible Gaming Principles into the day-to-day operations of member lotteries. The
Framework consists of:
The 7 Responsible Gaming Principles, to which WLA members commit themselves to:
- Meet their objectives while, at the same time, protect customers’ and vulnerable groups’
interests and uphold their commitments within their own jurisdiction.
- Ensure their practices and procedures reflect a combination of government regulations, operator
self-regulation, and individual responsibility.
- Develop their practices concerning Responsible Gaming on the best possible understanding of
relevant information and analysis of documented research.
- Work with Stakeholders to share information, develop research and promote Responsible
Gaming as broadly as possible, and encourage a better understanding of the gaming’s social
impact.
- Promote Responsible Gaming in all activities, including development, sale and marketing of their
products and other activities and ensure the same on behalf of their agents.
- Provide information to public in an accurate and balanced manner, in order to enable informed
choices about gaming activities within their jurisdiction.
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- Monitor, test and revise as appropriate the activities and practices related to Responsible Gaming
and publicly report their findings.
The 10 Responsible Gaming Framework program elements, which are described below:
Responsible Gaming Framework Program Elements
Element
Description
Research
Support and/or conduct, integrate and disseminate Responsible
Gaming related research.
Employee Program
Ensure and support efficient and effective application of Responsible
Gaming principles by all relevant employees.
Retailer Program
Ensure and support efficient and effective application of Responsible
Gaming principles by retailers and their front-line employees.
Game Design
Apply evidence-based Responsible Gaming considerations to design,
selection and introduction of new lottery and gaming products.
Remote Gaming Channels
Ensure that interactive remote gaming platforms have safeguards in
place that protect players.
Advertising and Marketing
Communications
Ensure continuous improvement of responsible marketing and
communications practices and application of regulatory codes.
Player Education
Support, integrate and disseminate information related to good
practices in responsible play (‘informed player choice’) and treatment
referral.
Treatment Referral
Offer support, guidance and referral to specialized services to
customers with potential or actual gaming addiction problems, if
needed.
Stakeholder Engagement
Identify, understand, and integrate Stakeholder interests into key
business decisions and Responsible Gaming program development.
Reporting and
Measurement
Measure and report on commitments, actions, and progress on
Responsible Gaming to internal and external Stakeholders.
Within 2021, INTRALOT S.A. renewed its Certificate of Alignment with WLA Responsible Gaming
Framework for Associate members until 2024, following an in-depth independent assessment performed
on its products and services as well as its Responsible Gaming practices by a WLA approved assessor.
The assessment covers all corporate functions related to the integrity of its systems and games and
recognizes INTRALOT’s commitment and efforts to create a secure and supportive gaming environment
as well as prevent underage, illegal, and problem gambling or any other potential harm to society.
While at the moment, there is no dedicated customer satisfaction survey or customer grievance
mechanism, INTRALOT plans to create a contact form in its corporate website for its Stakeholders to
submit potential grievances.
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Indicator
2020
2021
Briefings and Trainings
Participation in Stakeholder engagement activities and events on
Responsible Gaming issues (number)
15
10
Employees trained on Responsible Gaming practices (%)
77,5
15,0
Duration of employee trainings on Responsible Gaming issues (hours)
426
92
Customer employees participating in Responsible Gaming training
programs (number)
152
45
Compliance
Product recalls (number)
0
0
Users whose information has been used for secondary purposes (i.e.
purposes besides the original one for which they were collected)
(number)
0
0
Unique requests for user information (including user content and non-
content data) from government or law enforcement agencies (number)
0
0
Unique users whose information was requested by government or law
enforcement agencies (number)
0
0
Government and law enforcement requests that resulted in disclosure
to the requesting party (%)
0
0
Complaints or grievances concerning breaches of customer privacy and
losses of customer data (number)
0
0
Fines imposed regarding breaches of customer privacy or losses of
customer data (number)
0
0
Non-monetary sanctions imposed regarding breaches of customer
privacy or losses of customer data (number)
0
0
Fines imposed regarding marketing, advertising and promotion
activities and product or service information (e.g. product labeling)
(number)
0
0
Non-monetary sanctions imposed regarding marketing, advertising and
promotion activities and product or service information (e.g. product
labeling) (number)
0
0
2. Employee Wellbeing
Achieving our strategic objectives and maintain operational effectiveness is closely related to our
workforce, which allows us to operate successfully within a constantly changing business environment
and face its challenges. Therefore, INTRALOT:
Strives to create direct job positions, in order to lessen unemployment, as well indirectly support
work positions all over the country through its business activity.
Utilizes a wide range of internal communication means to establish a systematic dialogue with its
employees.
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Acknowledges the importance to promote work-life balance and aims to create and maintain a work
environment which respects its employees’ work and personal responsibilities, in order to increase
job satisfaction.
Has established a Compensation and Benefits Policy for its employees, which covers all employees
(including part-time and temporary employees), depending on their level and job content.
Organizes various employee awareness and engagement initiatives.
Delivers a wide range of training programs for its employees.
Focuses to ensure suitable and safe work conditions and offer its employees a safe work environment.
Respects labor rights and does not restrict employees to exercise their right to freedom of
association.
INTRALOT is committed to support and fully respect human rights, as expressed by the United Nations,
the International Labor Organization (ILO) and the relevant legislation. The Company strictly follows the
internationally recognized human rights principles and strives to protect human rights. Based on these
principles, INTRALOT:
Has signed the United Nations Global Compact since 2009.
Has included its commitment to refrain from activities which violate human rights (e.g.
discrimination, harassment, violence) within its Code of Conduct, as well as to respect human rights
within its Official Employment Guide, Internal Regulation Charter and Recruitment and Selection
Policy.
Has established a grievance mechanism for employees to submit complaints and report concerns or
incidents regarding human rights.
INTRALOT implements a strict policy towards meritocracy in the workplace and does not tolerate any
unlawful discrimination and harassment. As stated in its Code of Conduct, the Company does not allow
or tolerate any kind of discrimination due to gender, race, color, nationality, ancestry, citizenship, sexual
orientation, religion, age, physical or mental disability, medical condition or marital status. Furthermore,
INTRALOT has established a grievance mechanism for employees to report any discrimination or
harassment incident and does not tolerate any retaliation against an employee who reported such
incident. Therefore, the proportion of salary for men employees, Managers and Directors is equal to
women employees, Managers and Directors, as there is no salary differentiation between employees’
gender.
Indicator
2020
2021
Job Positions
Employees (number)
645
477
Permanent employees (%)
99,7
99,8
Full-time employees (%)
98,0
97,5
New hires (number)
78
28
Female
19
5
Male
59
23
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Voluntary turnover rate (%)*
11,5
19,5
Involuntary turnover rate (%)*
3,5
12,8
Turnover (number)*
99
174
Female
22
52
Male
77
122
Women employees in overall workforce (%)
32,6
34,4
Women in Board of Directors (%)
0,0
22,2
Women employees in the top 10% of employees by total compensation
(%)
10
14
Employees covered by the National Collective Labor Agreement (%)
100
100
Training and Development
Training programs to employees (number)
986
704
Employees trained (%)
87,6
84,3
Monetary value of employee training programs (€)
95.571
58.069
Health and Safety
Accidents (number)
0
0
Employee injuries (number)
0
0
Employee fatalities due to work-related accidents (number)
0
0
Accident frequency rate (rate)**
0
0
Accident severity rate (rate)***
0
0
Equality
Difference between the average base salary of full-time men
employees compared to full-time women employees (%)
27,7
27,8
Average training duration per employee (hours)
26,5
22,6
Average training duration per employee in the top 10% of
employees by total compensation
12
17,1
Average training duration per employee in the bottom 90% of
employees by total compensation
29,3
24,7
*Turnover data do not include INTRALOT employees who left for other INTRALOT Group’s companies in
Greece and abroad.
**Accident frequency rate: Number of recordable injuries x 200.000 work hours / Number of hours
worked by all employees.
***Accident severity rate: Number of work days lost due to work-related accidents x 200.000 work
hours / Number of hours worked by all employees.
3. Society Support
INTRALOT is committed to support the communities where it operates, as they provide the resources,
infrastructure, and markets for its businesses operations. Therefore, the Company has launched the
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targeted social support program ‘INTRALOT – We Care a Lot’, with targeted activities in two main areas:
a) Education and human capital, b) Social welfare and human development.
Indicative societal support activities
Education and human capital
Support to the United States’ Educational Foundation Fulbright for its scholarship program (2020, 2021)
Donation to Basketball Sports Club of Pagrati (2020, 2021)
Donation to Sports Club Kalistos (2021)
Social welfare and human development
Donation to the NGO ‘Together with Children’, which supports children and families in need (2021)
INTRALOT seeks to leverage corporate skills and resources and cultivates volunteerism through various
activities, as the Company:
Implemented two blood donation programs in 2020 and 2021, in cooperation with the Athens
Children’s Hospital ‘Aghia Sophia’, where INTRALOT has established a blood bank. As a result, the
Company gathered over 80 blood units, to support needs of employees and their families as well as
needs of society in general. It must be noted that the Company’s blood bank has responded to over
700 direct requests for blood units in the last 12 years, including needs of many hospitalized children.
Joined EBEN Ambassadors Club with a team of volunteers during 2020 and participated in a clean-
up activity of Marathonas beach, organized by the Hellenic Marine Environment Protection Association
(HELMEPA), a Greek non-governmental organization committed to safeguard the seas and promote
environmental awareness
Launched the recycling campaign ‘Recycle now and contribute to the NGO Together with Children,
which supports children and families in need, in order to support the organization’s activities through
the Integrated Rewarding Recycling Program.
Sharing Value
INTRALOT seeks to create economic value not only for its shareholders, but also for other Stakeholders.
Therefore, the Group’s revenues ensure that significant financial resources are returned back to society,
towards its network (through sales fees), the State (through taxes paid), providers of funds (through
interest paid for loans), suppliers (through purchases), employees (through wages and benefits), as
well as corporate reinvestment.
Furthermore, INTRALOT continuously invests in Research and Development (R&D), in order to enhance
quality, performance, and flexibility, while decrease development, maintenance, and deployment costs.
Apart from in-house R&D, INTRALOT has Development Centers in the United States of America and
Greece cooperates with leading educational institutions and technology vendors. Through its patents,
the Company emphasizes to leverage trends in mobile technology, multiple gaming channels, the
internet of things (IoT), cloud computing and HTML5.
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Indicator
2020
2021
Society Support
Societal support activities (number)
9
9
Value of societal support activities (€)
12.070
13.700
Blood units collected (number)
40
40
Sharing Value
Shared value generated worldwide (million €)
326,6
373,9
Shared value generated in Greece (million €)
81,4
95,8
Innovation and Research
Group R&D investments (million €)
12,5
2,7
Approved patents and designs worldwide (number)
308
261
NR = Not reported
Environment
1. Environmental Management
While environmental protection is a particularly important aspect for most industries, the gaming
industry has relatively low environmental impact. However, INTRALOT is aware of the future
repercussions of environmental degradation and monitors its environmental performance. Being
committed to environmental management and protection program, INTRALOT:
Has included its commitment to minimize its environmental impact, conserve resources and reduce
waste and emissions in its Code of Conduct and all employees are obliged to report any actual or
potential violation of environmental laws or any event that may result in a discharge or emission of
hazardous materials.
Reviews environmental legislation and regulations to comply and apply their provisions.
Has established an ISO 14001:2015 compliant Environmental Management System (EMS) and an
Environmental Legislation Monitoring Procedure to ensure compliance with applicable national and
international laws and regulations.
Takes into consideration regular environmental impact assessments, through which the Company
systematically identifies and evaluates the environmental impact of its activities, based on the
environmental impact’s severity and likelihood of occurrence.
Has appointed an Environmental Risk Officer to monitor environmental risks, propose changes to the
EMS and ensure proper understanding and implementation.
2. Materials & Waste
Being aware of the responsible approach required towards consumption of materials and waste, the
Company:
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Has adopted the Restriction of Hazardous Substances (RoHS) Directive 2002/95/EC for all terminals,
which limits or bans specific substances in electronic and electric equipment (e.g. lead, cadmium,
PBB, mercury, hexavalent chromium, PBDE flame retardants) and requires from suppliers located in
Europe to comply also with the Waste Electrical and Electronic Equipment (WEEE) Directive
2002/96/EC.
Follows the relevant legislative framework concerning waste disposal and does not directly send any
waste to landfills. Instead, all waste is systematically collected and sent to a licensed recycling
partner, who transports waste and handles waste disposal in an appropriate and environmentally
friendlier manner.
Uses central printers to scan and electronically disseminate copies.
Monitors and controls printing volume through centralized printers, where employees use their access
cards to print any documents.
Has replaced plastic cups with glass cups in water coolers, which prevents approximately 360,000
plastic cups being disposed each year.
Has placed recycling bins in its premises, which include recycling bins for paper, aluminum cans,
plastic cans and bottles, batteries and light bulbs, as well as small domestic electrical and electronic
devices and peripherals (e.g. toasters, digital cameras, personal computers, printers, mobile phones,
cables).
Water supply is performed exclusively through the public water supply network and water utility
companies; therefore, no other water sources are affected.
All liquid waste is directed to the public waste network.
Does not use hazardous cleaning materials.
Mainly utilizes chlorofluorocarbons (CFCs) free refrigerants to cool its servers, use in air-conditioning
and fire suppression systems as well as for its coolers, in order not to harm the ozone layer.
Does not use any of the top 27 recognised critical materials listed by the European Commission in
its list of critical raw materials (CRMs) (e.g. antimony, beryllium, cobalt, HREEs, phosphorus,
tungsten).
Utilizes internal communication means (e.g. email, Corporate intranet portal, posters) to raise
employee awareness on environmental protection and efficient use of energy sources.
In 2021, INTRALOT implemented the internal awareness campaign ‘Going Green at the Office’ with
useful tips to reduce energy consumption and waste, reuse paper and other materials (e.g. food and
beverage containers), as well as recycle paper, metals, glass, plastic, domestic batteries, light bulbs,
and electronic devices.
3. Energy & Emissions
Despite the fact that there is no specific long-term and short-term emission strategy, INTRALOT
implements the following indicative activities, in order to reduce its energy consumption and air
emissions:
Monitors fuel consumption of corporate leased vehicles, through fuel cards issued to users.
Uses LED lamps in its premises and replaces conventional lamps with energy-efficient lamps, with
approximately 90% of lamps installed in Peania premises being energy-efficient lamps.
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Has installed photoelectric cells in garage areas to turn off lights when there are no employees in
those areas.
Has installed and operates a Building Management System (BMS) in its building in Peania, which
allows operations to automatically halt in case of malfunctions.
While operating in a non-energy intensive industry with limited greenhouse gas emissions compared to
other industries, the Company systematically measures and reports its greenhouse gas emissions due
to its extensive operations and the issue’s importance worldwide.
Indicator
2020
2021
Materials and Waste
Paper consumption (paper purchased for all purposes, including
office and commercial use) (kg)
1.876
3.639
Toners consumption (units)
NR
130
Wood consumption (kg)
3.150
3.200
Plastic consumption (kg)
180
200
Recycled or FSC certified paper used (kg)
1.876
3.639
Waste (including hazardous waste) transported abroad for
treatment (kg)
0
0
Paper recycled (kg)
5.540
9.180
Toners recycled (kg)
0
162
Plastic recycled (kg)
180
200
Batteries recycled (kg)
127
542
Electrical and electronic equipment (WEEE) recycled (kg)
350
4.901
Metals recycled (kg)
NR
766
Packaging pieces recycled (units)
19.000
18.000
Light bulbs recycled (kg)
NR
102
Significant spills (e.g. chemicals, fuels) (number)
0
0
Effluent discharge containing pollutant substances (e.g. hazardous
waste, nitrates) (m
3
)
0
0
Water consumption (m
3
)*
13.296
4.500
Operational sites owned, leased, managed in, or adjacent to,
protected and/or high biodiversity value areas (number)
0
0
Energy and Emissions
Diesel for vehicle fleet (lt)
58.067
45.779
Gasoline for vehicle fleet (lt)
54.500
34.433
Heating petrol (lt)
90.000
82.000
Electricity (KWh)
1.741.260
1.691.027
Total energy consumption (GJ)
14.238
12.544
Direct energy consumption
7.969
6.456
Indirect energy consumption
6.269
6.088
Electricity consumption to total energy consumption (%)
44,0
48,5
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Energy from renewable sources to total energy consumption (%)
0
0
Total energy produced (GJ)
0
0
Total energy produced from renewable sources (%)
0
0
Total Direct (Scope 1) and Indirect (Scope 2) Greenhouse gas
emissions (tn)
1.569,6
1.439,4
Direct (Scope 1) Greenhouse gas emissions (tn)**
520,1
420,2
Due to diesel consumption for vehicle fleet
155,4
122,5
Due to gasoline consumption for vehicle fleet
123,8
78,2
Due to petrol consumption for heating
240,9
219,5
Indirect (Scope 2) Greenhouse gas emissions (i.e. due to electricity
consumption (tn)**
1.049,5
1.019,2
CO
2
emissions due to air travel (other indirect emissions) (kg)***
22.382
2.139****
Direct (Scope 1) Greenhouse gas emissions intensity
(tons/employee)
0,8
0,9
Indirect (Scope 2) Greenhouse gas emissions intensity
(tons/employee)
1,6
2,1
* Water consumption for 2020 includes also the volume required to fill the cooling towers for the air
conditioning system in INTRALOT’s building in Maroussi, due to water leakages noticed.
**Sources of conversion factors: GHG Protocol GHG emissions from transport or mobile sources
Calculation Tool v2.6 May 2015 (Diesel, Gasoline), GHG Protocol GHG emissions from stationary
combustion Calculation Tool V 4.1 May 2015 (Heating Petrol), National Inventory Report 2021 for Greece
(Electricity)
***Estimated emissions.
****Figure refers to the period 01/01/2021—30/06/2021.
NR = Not reported
Notifications related to article 8 of the EU Taxonomy Regulation
The European taxonomy (EU Taxonomy Regulation, (EU) 2020/852) is a classification system that
compiles a list of environmentally sustainable economic activities. It aims to play an important role in
helping the EU increase sustainable investment under the Europe Green Deal. The EU classification will
provide companies, investors, and policymakers with appropriate definitions for which economic
activities can be considered environmentally sustainable. The scope of the Taxonomy Regulation
includes inter alia undertakings which are subject to the obligation to publish non‐financial statements
pursuant Art.19a or 29a of the Accounting Directive 2013/34/EU. These undertakings are to provide
investors with a basis for their investment decision by disclosing information on how and to what extent
the undertaking’s activities are associated with environmentally sustainable economic activities (Art.8
of the Taxonomy Regulation). The aim is to increase transparency and help prevent greenwashing and
enlarge the space for green finance.
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1. Identification of Key Performance Indicators (KPIs)
The European Commission identifies three Key Performance Indicators (KPIs) to be disclosed regarding
the proportion of the Taxonomy eligible activities of the Group to its total activities:
Turnover
The percentage of the Taxonomy eligible economic activities on the total turnover has been calculated
as part of the turnover associated with the Taxonomy eligible economic activities (numerator), to the
total consolidated turnover (denominator).
Operating Expenses
The percentage of the operating expenses related to the Taxonomy eligible economic activities
(numerator) to the total operating expenses (denominator) on a consolidated basis. Τhe total operating
expenses can be derived from the summation of the figures reported in Notes 2.4, 2.5, 2.6 and 2.9 of
the financial statements.
Capital Expenditure
The capital expenditure defined as Taxonomy eligible economic activities (numerator) to the total capital
expenditure (denominator). The total capital expenditure consists of the additions to intangible assets,
property, plant and equipment, right‐of‐use assets and investment property during the financial year,
before depreciation and amortization, impairment and any measurements, including any resulting
remeasurement and impairment. Τhe total capital expenditure can be derived from the summation of
the figures reported in Notes 2.5 και 2.8 (impairments) of the financial statements.
2. Application of Taxonomy Regulation
The following disclosures are provided for the purposes of the simplified reporting requirements in
accordance with the Art.10 (2) of the Art.8 Delegated Deed (Delegated Regulation (EU) 2021/2178).
We have examined all Taxonomy eligible economic activities listed in the Climate Delegated Act based
on our Group activities as a gaming solutions supplier and operator. The Climate Delegated Act focuses
on those economic activities and sectors that have the greatest potential to achieve the objective of
climate change mitigation, i.e. the need to avoid producing greenhouse gas emissions, to reduce such
emissions or to increase greenhouse gas removals and long-term carbon storage. After a thorough
review involving all relevant divisions and functions, we concluded that our core economic activities are
not covered by the Climate Delegated Act and consequently are Taxonomy non-eligible. As a result, the
share of the Taxonomy eligible economic activities according to the Art. 8 of the Regulation for Taxonomy
and the Art. 10 (2) of the Art. 8 of the Delegated Act in our turnover is 0% and consequently the related
operating and capital expenditures are also 0%.
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HUMAN RESOURCES
Our Best Asset
Acknowledging the importance of Human Resources as the most important asset and competitive
advantage of any Company, the policies pursued, and the initiatives undertaken by INTRALOT and its
subsidiaries abroad, aim at effectively attracting, enhancing, motivating, and retaining talent. The
continuous efforts and contribution of all INTRALOT employees, as well as their unceasing trust and
support of its shareholders, remain a key factor in the advancement of the Company’s competitiveness
and further growth. The Company undertakes to provide its employees with a working environment that
will constantly develop their capabilities and enhance their performance through reward and recognition
schemes, always in accordance with the principles that govern the Group.
From an HR perspective, 2021 has been another challenging year due to the COVID-19 pandemic
breakout. The health and safety of our people remained our top priority. Therefore, we had fully complied
with all measures imposed by local governments and employed all available technological resources in
order to effectively work remotely.
At Headquarters level, the total turnover rate was at the range of 19,4%, while the people who joined
reached 5,4% of the total personnel base. For the selection of human resources, high recruitment
standards and processes have been followed.
Performance Appraisal Management
The Performance Appraisal Management system operates in the parent company and in most
subsidiaries for 5 years. An integrated and detailed goal setting process is set at the beginning of the
year, followed by a review of these goals and a meeting between the employee and the supervisor in
the middle of the year (to make any necessary adjustments on plans and/or minor changes of goals)
and it is concluded at the beginning of next year with the performance appraisal of the year passed.
In 2021 the company made some important modifications, in order to make the process user friendly
and more efficient, by implementing the hybrid model of Continuous Performance Management (CPM).
With the CPM, the company's management team has the opportunity to update, where necessary, the
goals during the year, while providing specific details and validation. In parallel, the performance system
has been enhanced by a feature of continuous monitoring of the employee's contribution to achieving
these goals. The activities and the achievements, as well as the relevant feedback received from
colleagues, have now become part of the new performance management appraisal.
From an innovation point of view, INTRALOT is moving from a traditional performance appraisal scheme
to a more modern, dynamic and flexible model, thus improving productivity and offering opportunity for
regular meet ups and alignment between the employee and his/her supervisor.
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Training and Development
In 2021, our efforts were focused on internal promotions and training. 10% of our people were
promoted, while 4 rose to Top Management level.
In terms of Training, great emphasis was placed on specialized training mainly through e-learning
platforms, in partnership with Microsoft - a skills development program involving more than 400
employees. Also, trainings were implemented for the induction of the newcomers, the leadership skills
development and the development of technical skills through platforms, such as Pluralsight and Udemy,
by creating individualized training programs. Moreover, the security and compliance training program,
the responsible game, the anti-bribery policy and the new performance management system of our
people were redesigned and took place throughout the year via our corporate e-learning platform.
Specifically, at Headquarters level, approximately 3.500 participations in 34 instructor-led training
sessions and in nearly 650 e-learning (self-paced) training courses, totaling approximately 11.000
training hours.
Activities
The company, in the context of strengthening its Employer Branding, participated in the most important
events for attracting new talented people in the field of technology, such as: Open Conference, Project
Future, University Of Piraeus – Mock Interviews, Oπe\n conference, 2021 Career and Internships Day –
Hellenic American College, Digital Developers Day, Panorama (Virtual), Career Days by AUEB, Deree
Career Days 2021, ReGeneration Academy for Women in Data Engineering powered by EY and Youth
Empowered.
Furthermore, a series of healthcare benefits were carried out in the past year, such as the proactive
healthcare check-up, the annual flu vaccination and the blood donation initiative, to serve the needs of
INTRALOT’s blood bank. Additionally, further initiatives took place in order to inform our people about
wellness, the new integrated recycling program and the environmental practices in the office.
Last but not least, in 2021 our company had the following Distinctions at HR Awards 2021: 1) a Silver
Award for our Continuous Performance Management (CPM), 2) Bronze Awards for:
a)“iLead”-Innovative leadership development program focusing on excellence and
b)”Reskilling Strategy for employees via an online platform, aiming at their well-timed training in
technical skills”.
RISKS AND UNCERTAINTIES
Enterprise Risk Management
The Enterprise Risk Management (ERM) Framework documents the good practices adopted by the
INTRALOT Group in order to identify, assess and manage risks related to the achievement of its business
objectives.
INTRALOT ERM targets at the assurance of stakeholder and shareholder trust through the appropriate
and continuous balancing of risk and value.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
88
INTRALOT ERM follows a holistic approach for taking into account all parameters that drive the execution
of INTRALOT Group Strategy, including INTRALOT’s financial health, operations, people, technology,
compliance, products and reputation.
ERM provides the means to continuously monitor risk, align it with the changing internal and external
parameters and manage it according to the defined corporate risk appetite.
The Enterprise Risk Management (ERM) Framework is designed according to the specifications of COSO
(Committee of Sponsorship Organizations of the Treadway Commission) and ISACA (COBIT for RISK).
It is a holistic strategic framework taking into account risks related to the business objectives of
INTRALOT GROUP.
The framework incorporates the following components:
1. Objective setting: Objectives are clearly defined in order to be used as a reference point for the
identification of risks. A process is in place for setting objectives that align with INTRALOT’s mission and
are consistent with the corporate risk appetite.
2. Risk assessment: Risks are analyzed in relation to the objectives and by determining the likelihood
of and impact from the realization of an adverse event.
3. Risk response: Management selects risk responses – avoiding, accepting, reducing, or sharing risk –
developing a set of actions to align risks with the entity's risk tolerances and risk appetite.
4. Event identification: Internal and external events affecting the achievement of INTRALOT objectives
are identified.
5. Internal environment: The internal environment sets the basis for how risk is viewed and addressed
by people, including risk management philosophy and risk appetite, integrity and ethical values, and
the environment in which they operate.
6. Control activities: Policies, procedures, strategies and action plans in general are established and
implemented to help ensure the risk responses are effectively carried out.
7. Information and communication: Relevant information is identified, captured, and communicated in
a form and time frame that enable people to carry out their responsibilities.
8. Monitoring: Risk is monitored, and modifications made as necessary. Monitoring is accomplished
through ongoing management activities, separate evaluations, or both.
Description of significant risks and uncertainties
FINANCIAL RISKS
The Group's international activities create several financial risks in the Group's operation, due to
constant changes in the global financial environment. The Group beyond the traditional risks of liquidity
risk and credit risk also faces market risk. The most significant of these risks are currency risk and
interest rate risk. The risk management program is a dynamic process that is constantly evolving and
adapted according to market conditions and aims to minimize potential negative impact on financial
results. The basic risk management policies are set by the Group Management. The risk management
policy is implemented by the Treasury Department of the Group which operates under specific guidelines
approved by management.
Credit risk
The Group does not have significant credit risk concentration because of the wide dispersion of its
customers and the fact that credit limits are set through signed contracts. The maximum exposure of
credit risk amounts to the aggregate values presented in the financial position. In order to minimize the
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
89
potential credit risk exposure arising from cash and cash equivalents, the Group sets limits regarding
the amount of credit exposure to any financial institution. Moreover, in order to secure its transactions
even more, the Group adopted an internal rating system, regarding credit rating evaluation, using the
relevant financial indices.
Liquidity risk
Prudent liquidity management means maintaining adequate liquidity, funding ability through approved
credit limits, and ability to repay liabilities. The Group has established specific policies to manage and
monitor its liquidity in order to continuously have sufficient cash and liquid non-core assets that can
meet its obligations. In addition, the Group has set up a system of monitoring and constant optimization
of its operating and investing costs in the framework of its liquidity management policies.
Further analysis of the maturity of the financial liabilities of the Group is provided in note 2.33 of the
annual financial statements.
Market Risk
1) Foreign Exchange risk
Fluctuations in exchange rates can have significant effects on the Group’s currency positions. Group
transactions are carried out in more than one currency and therefore there is a high exposure in foreign
exchange rate fluctuations against the euro, which is the main underlying economic currency. On the
other hand, the Group’s activity abroad also helps to create an advantage in foreign exchange risk
management, due to the diversification in the currency portfolio. This kind of risk mainly results from
commercial transactions in foreign currency as well as investments in foreign entities. For managing
this type of risk, the Group enters into derivative financial instruments with various financial institutions,
such as foreign currency hedging for receipts of foreign currency dividends by abroad subsidiaries. The
Group’s policy regarding the foreign exchange risk concerns not only the parent company but also the
Group’s subsidiaries.
Further analysis of the sensitivity analysis on foreign exchange variations and currency hedging
derivatives is provided in note 2.33 of the annual financial statements.
2) Interest rate risk
Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Group's activities are closely linked to interest rates
because of investments and long and short-term borrowings. To manage this risk category, the Group
uses financial hedging instruments in order to reduce its exposure to interest rate risk. The Group's policy
on managing its exposure to interest rate risk affects not only the parent company but also its subsidiaries
for their loans concluded in euros or local currency. The Group's exposure to the risk of changes in market
interest rates relates primarily to long-term borrowings of the Group's floating rate. The Group also
manages interest rate risk by having a balanced portfolio of loans with fixed and floating rate borrowings.
On 31 December 2021, taking into account the impact of possible financial hedging products, almost all
of the Group's borrowings are at a fixed rate (31/12/2020: 98,5%) with an average life of approximately
3,2 years. As a result, the impact of interest rate fluctuations in operating results and cash flows of the
Group's operating activities is small.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
90
3) High leverage risk
INTRALOT’s ability to incur significant additional amounts of debt so as to finance its operations and
expansion depends on capital market conditions that influence the levels of new debt issues interest
rates and relevant costs. Furthermore, INTRALOT may be able to incur substantial additional debt in the
future, however, under the Senior Notes terms will be able to incur additional debt so long as on an
actual basis its consolidated fixed charge coverage ratio is at least 2,00 (31/12/2021: approximately
2,86), and will be able to incur additional senior debt as long as on a pro forma basis the ratio of total
net debt to EBITDA (senior leverage ratio) is not more than 3,75 (31/12/2021: approximately 4,36).
Furthermore, to the above, the Group can incur additional debt from specific baskets. In addition,
according to Senior Notes terms (SSN & Supplemental Indenture), the Group, through its subsidiary
Intralot Inc., will be able to obtain additional borrowing, provided that on an actual basis the ratio of
total net debt to EBITDA (senior leverage ratio) is not more than 3,75 (31/12/2021: in compliance).
Further analysis of the Group's leverage is provided in note 2.33 of the annual financial statements.
OPERATING RISKS
Winners’ payouts in sports betting
INTRALOT is one of the largest sports betting operator worldwide. The winners’ payout in sports betting
may fluctuate in the short-term since it depends on the outcome of the events. The fluctuation of the
payout may affect the financial results and cash flows of INTRALOT since it represents a significant cost
element for the Company.
Gaming sector and economic activity
The gaming market is affected by the economic cycles since lottery products are consumer products.
However, the gaming sector is more resilient than other sectors of the economy in periods of economic
crisis. Specifically, during an economic downturn, frequent draw games (like KENO or VLTs) are most
likely to present a reduction in revenues, while lotto type games are less affected. With its international
expansion, INTRALOT has achieved significant diversification and has reduced its dependency on the
performance of individual markets and economies.
Gaming Taxation
The financial crisis has increased the budget deficits of many countries. The increase of the taxation of
lottery games constitutes sometimes an easy, but not correct in Group’s opinion, solution for the
governments to finance these deficits. Nevertheless, such measures may affect INTRALOT’s financial
results.
Regulatory risk
The gaming industry is subject to extensive regulations and oversight and regulatory requirements vary
from jurisdiction to jurisdiction. Because of the broad geographical reach of INTRALOT’s operations, it
is subject to a wide range of complex gaming laws and regulations in the jurisdictions in which it is
licensed or operate. These regulations govern, for example, advertisement, payouts, taxation, cash and
anti-money laundering compliance procedures and other specific limitations, such as the number of
gaming machines in a given POS and their proximity to each other. Most jurisdictions require that
INTRALOT be licensed. If a license, approval or finding of suitability is required by a regulatory authority
and INTRALOT fails to seek or does not receive the necessary approval, license or finding of suitability,
then it may be prohibited from providing its products or services for use in the particular jurisdiction.
INTRALOT relies on government licenses in order to conduct its main business activities and termination
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
91
of these licenses would have a material adverse effect on Group revenue. Changes in regulatory
environment in any particular jurisdictions may have a material adverse impact on Group results, cash
flows, business operations or prospects.
Technological changes
The gaming industry is characterized by rapidly changing technology and evolving industry standards.
Many of INTRALOT’s software and hardware products are based on proprietary technologies. INTRALOT’s
competitiveness in the future will depend on its ability to respond to technological changes and satisfy
future technology demands by developing or licensing innovative and appealing products in a timely
and cost-effective manner. INTRALOT invests significant financial resources in R&D efforts to develop
innovative products so as to compete effectively in the gaming markets.
Emerging markets risk
INTRALOT operates and offers its products and services in many countries, actively operating in rapidly
growing and emerging markets. Potential social, political, legal and economic instability in these
markets, such as the political turmoil in Turkey in 2016, may pose significant risks to the Group ability
to conduct its business and expand its activities in these markets. Although management believes its
operations in Turkey have not been affected, there can be no assurances such events will not have an
impact in the future.
Competition risk and margin squeeze
Intralot operates in a highly competitive industry and its success depends on its ability to effectively
compete with numerous domestic and foreign companies. Also, Intralot is heavily dependent on its
ability to renew its long term contracts with its customers and could lose substantial revenue and profits
if is unable to renew such contracts or renew them with less favorable terms (profit margins, smaller
range of services, etc.) due to high competition during public tender process.
Environmental Sustainability
INTRALOT embodies environmental sustainability by identifying best practices and perform green
initiatives that align with its' values, in order to reduce its' environmental footprint. Paper and energy
consumption are the largest environmental impacts identified. INTRALOT is committed to reducing the
amount of waste and improve its' recycling rates. Additionally, it reduces the use of physical resources
such as paper and ink by reducing printing within the offices. INTRALOT is measuring its environmental
impact in order to operate in a more sustainable way in the future.
Other Operating Risks
• risks posed by illegal betting (loss of market share),
• changes in consumer preferences,
• increased competition in the gaming industry,
• non-renewal or termination of material contracts and licenses,
• seasonality of sports schedules,
• player fraud.
Risk of coronavirus pandemic (COVID-19)
The COVID-19 pandemic continues to affect economic and business activity around the world. The extent
of its impact will depend on its duration, government policy in key jurisdictions regarding restrictions
implemented and the current and subsequent economic disruption that the pandemic will cause.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
92
Regarding the activities of the Group, the Management closely monitors the developments from the
outbreak, follows the guidance of the local health authorities and observes the requirements and actions
implemented by all local governments. The Group has implemented emergency plans to reduce the
potential adverse effects on the Group's employees and businesses. Further details regarding the
restrictions on Group operations from both COVID-19 and local governments actions, as well as the
potential financial impacts on the performance of the year 2021, are presented in the section
“Coronavirus (COVID-19) pandemic impact” of the Board of the Directors Report, and in the note 2.37
“CORONOVIRUS PANDEMIC (COVID-19) IMPACT” of the Annual Financial Statements for the period
ended 31 December 2021.
MATERIAL TRANSACTIONS BETWEEN THE COMPANY AND RELATED PARTIES:
The most important transactions between the Company and its related parties as per IAS 24 are
presented on the table below:
Group
(total operations)
Income
Expense
1/1/2021-
31/12/2021
1/1/2020-
31/12/2020
1/1/2021-
31/12/2021
1/1/2020-
31/12/2020
Intracom Holdings Group
17
82
4.614
5.411
Hellenic Lotteries S.A.
0
0
0
0
Lotrich Information Co LTD
2.088
2.344
0
0
Intralot de Peru SAC
93
2.140
0
0
Firich Enterprises Co LTD
43
6
986
2.892
Other related parties
378
356
511
1.969
Executives and members of the board
0
0
7.605
8.643
Total
2.619
4.928
13.716
18.915
Company
Income
Expense
1/1/2021-
31/12/2021
1/1/2020-
31/12/2020
1/1/2021-
31/12/2021
1/1/2020-
31/12/2020
Intracom Holdings Group
0
0
2.835
4.380
Lotrich Information Co LTD
2.341
3.754
0
0
Firich Enterprises Co LTD
43
6
730
485
Intralot de Peru SAC
93
2.518
0
0
Intralot Maroc S.A.
1.208
1.783
1.174
0
Maltco Lotteries Ltd
1.576
1.708
0
0
Intralot Finance UK LTD
10.821
1.871
23.671
17.585
Betting Company S.A.
629
384
1.122
1.045
Inteltek Internet AS
0
2.091
3
0
Intralot Global Operations B.V.
4.800
2.924
3.014
0
Intralot Gaming Services Pty Ltd
3.729
2.268
0
5
Intralot Inc
8.206
6.800
0
0
Intralot Australia PTY Ltd
453
2.473
0
0
Bilyoner Interaktif Hizmelter A.S.
1.945
1.098
65
0
Intralot Ireland LTD
1.620
1.273
0
0
Intralot Iberia Holdings S.A.
3.218
516
116
0
Intralot Adriatic DOO
3.582
1.563
1.339
0
Intralot Benelux B.V.
3.868
1.082
0
0
Bit8 LTD
0
16
2
1.440
Intralot Global Holdings B.V.
11
5
1.430
3.433
Intralot International Ltd
3.434
10.915
417
160
Other related parties
2.101
2.564
4
2.768
Executives and members of the board
0
0
5.206
6.293
Total
53.677
47.612
41.128
37.596
Group
(total operations)
Receivable
Payable
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Intracom Holdings Group
1.348
1.978
7.697
5.555
Lotrich Information Co LTD
1.182
674
0
0
Turkcell Group
0
0
0
0
VSC
5.136
4.579
0
389
Other related parties
9.618
7.946
225
2.514
Executives and members of the board
32
0
360
343
Total
17.316
15.177
8.282
8.801
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
93
Company
Receivable
Payable
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Intracom Holdings Group
42
56
3.287
4.728
Intralot International Ltd
13.452
0
420
164
Betting Company S.A.
1.591
10.875
4.702
4.052
Intralot Global Holdings B.V.
11
1.817
4.142
3.433
Bilyoner AS
0
4
1.701
0
Maltco Lotteries LTD
1.464
1.287
0
0
Lotrom S.A.
1.663
1.523
12.734
12.940
Intralot Inc
439
1.663
0
264
Intralot Finance UK LTD
1.558
26.036
250.425
308.338
Intralot Beijing Co LTD
0
1.871
0
1.861
Intralot Gaming Services PTY LTD
811
0
36
36
Intralot Maroc S.A.
6.989
2.306
1.174
9
Intralot Global Operations B.V.
7.069
6.258
3.014
0
Intralot Australia PTY LTD
10
4.879
199
174
Intralot Adriatic DOO
8.119
1.331
1.350
4
Intralot Benelux B.V.
3.159
4.530
0
0
Other related parties
9.237
994
1.711
1.046
Executives and members of the board
0
10.685
263
240
Total
55.615
76.118
285.158
337.289
From the company income in 2021, €4.997 thousand (2020: €4.986 thousand) refer to dividends from
the subsidiaries Iberia Holdings Sa and Bilyoner AS (Inteltek Internet AS and associate company Intralot
de Peru SA for 2020)and associated company Lotrich Information Co LTD.
The BoD and Key Management Personnel transactions and fees for the Group and the Company for the
year 1/1/2021-31/12/2021 were €7,6 million and €5,2 million respectively (2020: €8,6 million and €6,3
million respectively).
ALTERNATIVE PERFORMANCE MEASURES (“APM”)
The Group uses Alternative Performance Measurements ("APM") in decision-making regarding its
financial, operational and strategic planning as well as for the evaluation and publication of its
performance. These APMs serve to better understand the financial and operating results of the Group,
its financial position and the cash flow statement. Alternative indicators ("APM") should always be taken
into account in conjunction with the financial results prepared in accordance with IFRS and under no
circumstances replace them.
Definitions and reconciliation of APM
In the description of the Group's performance, "Adjusted” indicators are used:
• Net sales after winners payout (GGR)
• Adjusted EBITDA,
• Adjusted Net Debt, and
• Adjusted free cash flow,
Net Sales after winners’ payout (GGR)
The “Net Sales after winners’ payout (GGR)” are calculated by subtracting the “Pay out” from “Sale
proceeds”. The relevant calculations are illustrated below:
GROUP
1/1-31/12/2021
1/1-31/12/2020
Sale proceeds
413.998
344.885
Winners Pay out
-78.695
-59.526
Net sales after winners payout (GGR)
335.303
285.359
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
94
Net Debt
Net debt is an APM used by the management to assess the capital structure of the Group. Net debt is
calculated by adding to "Long-term debt" the "Long-term lease liabilities" the "Short-term debt" and the
"Short-term lease liabilities" and deducting from total the “Cash and cash equivalents”.
Net Debt (adjusted)
The adjusted net debt is defined as the net debt except for the discontinued operations of the Group in
Polland (Totolotek S.A.), Bulgary (Bilot EOOD, Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd,
Eurobet Trading Ltd, ICS S.A.), Brazil (Intralot do Brazil Ltda, OLTP Ltda) and Peru (Intralot de Peru
SAC). The relative calculations are presented below:
GROUP
31/12/2021
31/12/2020
Long-term debt
578.805
468.695
Long-term lease liabilities
9.179
7.469
Short-term debt
13.678
272.032
Short-term lease liabilities
2.857
2.882
Total debt
604.519
751.078
Cash and cash equivalents
-107.339
-99.984
Net debt
497.180
651.095
Discontinued operations debt
0
-63
Discontinued operations cash and cash equivalents
0
601
Net debt (adjusted)
497.180
651.633
EBITDA from continuing operations
110.440
66.191
Leverage
4,50
9,84
*Restated due to change in accounting policy (note 2.1.4)
EBITDA
International Financial Reporting Standards (IFRS) do not define the content of the “EBITDA” & “EBIT”.
The Group taking into account the nature of its activities, defines “EBITDA” as “Operating Profit/(Loss)
before tax” adjusted for the figures “Profit/(loss) from equity method consolidations”, “Profit/(loss) on net
monetary position”, “Exchange Differences”, “Interest and similar income”, “Interest and similar
expenses”, “Income/(expenses) from participations and investments”, “Write-off and impairment loss of
assets”, “Gain/(loss) from assets disposal”, “Reorganization costs” and “Assets depreciation and
amortization”. Also, the Group defines “EBIT” as “Operating Profit/(Loss) before tax” adjusted for the
figures “Profit/(loss) from equity method consolidations”, “Profit/(loss) on net monetary position”,
“Exchange Differences”, “Interest and similar income”, “Interest and similar expenses”,
“Income/(expenses) from participations and investments” ,“Write-off and impairment loss of assets” and
“Gain/(loss) from assets disposal”.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
95
Reconciliation of operating profit before tax to EBIT and EBITDA
(continuing operations):
GROUP
1/1-31/12/2021
1/1-31/12/2020
Restated*
Operating profit/(loss) before tax
37.101
-91.870
Profit / (loss) to net monetary position
-595
-61
Profit / (loss) from equity method consolidations
-213
1.476
Exchange Differences
1.165
8.639
Interest and similar income
-47.381
-1.539
Interest and similar expenses
60.942
49.903
Income/(expenses) from participations and investments
-45.112
3.895
Gain/(loss) from assets disposal, impairment loss and write-off of assets
16.318
21.028
EBIT
22.225
-8.530
Depreciation and amortization
71.046
67.967
Reorganization costs
17.170
6.754
EBITDA
110.440
66.191
*Restated due to change in accounting policy (note 2.1.4)
Adjusted EBITDA
The adjusted EBITDA is presented in order to better analyze the Group's operating results in combination
with its respective structure. As “Adjusted EBITDA” is defined the “Proportionate” EBITDA of the Group by
adding the “Proportionate” EBITDA of the Group's most important associates and other companies. As
“Proportionate” EBITDA of the Group is defined, the sum of the product of EBITDA contributed by each
subsidiary (after the elimination of intra-group transactions) multiplied by the Group's participation
percentage in that subsidiary. As “Proportionate” EBITDA of the most important associates and other
companies of the Group is defined the sum of the product of EBITDA contributed by each company
multiplied by the Group's participation percentage in that company.
The most important associates and other companies are those in which the Group participates with more
than 15% and distribute dividends on a systematic basis. For 2021 and 2020 the most important associates
and other companies are identified as: Hellenic Lotteries S.A. (until the sale date of the investment), and
Lotrich Information Co LTD.
The EBITDA of the Totolotek S.A., Bilot EOOD, Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd,
Eurobet Trading Ltd, ICS S.A., Intralot do Brazil Ltda, OLTP Ltda and Intralot de Peru SAC Ltd has been
excluded from the calculation as it has been classified in the discontinued operations according to the IFRS
5. The relevant calculations are presented below:
Adjusted EBITDA
GROUP
1/1-31/12/2021
1/1-31/12/2020 Restated*
EBITDA
110.440
66.191
“Proportionate” EBITDA of the Group
84.086
55.506
“Proportionate” EBITDA of the most important associates
and other companies of the Group
283
374
Adjusted EBITDA
84.369
55.880
*Restated due to change in accounting policy (note 2.1.4)
Adjusted free cash flows
The “Adjusted free cash flows” are defined as the EBITDA of the Group, subtracting the “Maintenance
Capital Expenditure”, the “Income tax paid”, the “Interest and similar expenses paid” (except
“Refinancing costs paid” included in “Interest and similar expenses paid”), the “Interest received”, the
“Dividends received” and “Dividends paid”. The aforementioned amounts relate to Group's continuing
operations (excluding discontinued operations Azerinteltek AS, Totolotek SA, Bilot EOOD, Eurofootball Ltd,
Bilot Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd, ICS S.A. as well as the selling expenses of the
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
96
investment Gamenet Group S.p.A.). As “Maintenance Capital Expenditure” is defined the cash outflow to
acquire tangible and intangible fixed assets associated with existing Group projects in order to maintain,
replace or upgrade the Group's Gaming Technology Equipment as required to maintain gaming systems
in good operating mode during each contract. "Refinancing costs paid" are defined as the redemption
premium and the tender offer premium and the issue costs of bank loans. The relevant calculations are
presented below:
(continuing operation)
GROUP
1/1-31/12/2021
1/1-31/12/2020
EBITDA
110.440
66.191
Maintenance Capital Expenditure
-10.900
-7.300
Income tax paid
3.840
-14.516
Interest and similar expenses paid
-40.650
-45.840
Interest received
2.072
2.142
Dividends received
1.210
2.476
Dividends paid
-6.479
-8.226
Adjusted free cash flows
59.533
-5.073
Reconciliation with Group Cash Flow Statement:
GROUP 1/1-31/12/2021
Total
Operations
Discontinued
Operations
Continuing
Operations
Income tax paid
3.840
0
3.840
Interest and similar expenses paid
-40.672
-22
-40.650
Interest received
2.077
5
2.072
Dividends received
1.210
0
1.210
Dividends paid
-6.479
-0
-6.479
GROUP 1/1-31/12/2020
Total
Operations
Discontinued
Operations
Continuing
Operations
Income tax paid
-14.511
-5
-14.516
Interest and similar expenses paid
-45.941
-101
-45.840
Interest received
2.153
11
2.142
Dividends received
3.441
965
2.476
Dividends paid
-8.461
-235
-8.226
From the information stated above and from the Financial Statements you are able to have a complete
picture of the Group for the year 1/1/2021-31/12/2021.
Peania, 8/4/2022
Sincerely,
Chairman of the Board of Directors
and Group CEO
Sokratis P. Kokkalis
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
97
Explanatory Report on Article 4 par. 7 & 8 of L. 3556/2007
1. Share capital structure.
The share capital of the Company amounts today to forty five million six hundred and seventy eight
thousand five hundred sixteen euro and thirty cents (€45.678.516,30) divided by one hundred fifty two
million two hundred and sixty one thousand seven hundred twenty one (152.261.721) nominal shares
at thirty cents (€0.30) each. All Company shares are introduced to the Athens Stock Exchange for
negotiation, in the Surveillance category, under “Travel & Leisure / Casinos & Gambling” Sector.
Company shares are common registered shares with a voting right.
2. Restrictions on company share transfer.
Transfer of Company shares is made in accordance with the law, and the Company Statute contains no
restrictions on transfer.
3. Major direct or indirect participation pursuant to the Articles 9 to 11 of L. 3556/2007
Mr. Socratis Kokkalis owned indirect 20.885% of the corporate share capital as of 31/12/2021, through
ALPHACHOICE SERVICES LTD, a company 100% controlled by the company “K-SYSTEMS”, 100%
controlled by Mr. Socratis P. Kokkalis.
All other natural or legal person / entity own no more than 5% of the corporate share capital.
4. Shareholders with special control rights (all types of shares).
Corporate shares, which confer special control rights to their holders, have not been issued.
5. Restrictions on the voting right.
The Company Statute does not provide for restrictions on the voting right.
6. Agreements between Company Shareholders.
The Company has no notion of agreements between its shareholders that may result in restrictions both
on share transfer and on the exercise of the related voting rights.
7. BoD members’ appointment rules and replacement; Statute amendments.
The rules of the Company Statute concerning appointment and replacement of corporate BoD members,
as well as amendments in the Statute provisions, are conformed with Law 4548/2018.
8. BoD or BoD member responsibility for the issuance of new shares or the purchase of own
shares.
Intralot BoD is responsible for issuing new shares in the following cases:
a. According to article 5 § 2 and 3 of the corporate Statute:
″ 2.Without prejudice to the provisions of par. 3 of this article, it is decided herewith that the
Company's Board of Directors is entitled upon relevant authorization of the General Meeting of
the Company's Shareholders, to make a decision by the majority of two thirds (2/3) of all its
members and to increase the Company's share capital, wholly or partly, by issuing new shares
for an amount which cannot exceed three times the amount of the share capital which was paid
up on the date when such power and authority was granted to the Board of Directors. The above
decision of the General Meeting of the Company's Shareholders is subject to publication in
accordance with the provisions of article 13 of L. 4548/2018.
The above power and authority of the Board of Directors can be renewed by the General Meeting
of the Company's Shareholders for a period of time not exceeding a five-year period for each
renewal, while it becomes effective after the expiration of each five-year period.
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
98
3. Any decision on increase of the Company's share capital made in accordance with the provisions
of par. 2 of this article constitutes a modification of the Company's Articles of Association″.
The above right has not been conferred to the corporate BoD.
b. In the cases referred to in article 26 of the L. 4548/2018 and article 113 of L.4548/2018 in
accordance with the article 7 § 3 and 4 (grant stock option rights) last quotation of Articles of
Association.
″3. In any case of increase of the Company's capital, which is not made by way of contribution
in kind as well as in the case of issue of bonds convertible into shares, the shareholders of the
Company at the time of issue of the new shares have a pre-emption right as regards the
acquisition of all new shares or the participation in the bond loan, on a pro-rata basis, according
to the number of shares they already own.
The pre-emption right should be exercised within the deadline set by the Company's body which
decided on the increase. Such deadline can under no circumstances be less than fourteen (14)
days, without prejudice to the provisions regarding deadline for payment of the share capital,
as specified in article 20 of L.4548/2018. In case of paragraph 2 of article 25 of L.4548/2018,
the deadline set for the exercise of the pre-emption right starts as of the date when the relevant
decision of the Board of Directors was made regarding determination of the price of disposal of
the new shares. After the expiration of such deadlines, the shares which have not been paid
according to everything specified hereinabove, shall be disposed of by the Company's Board of
Directors at its discretion at a price which cannot be less than the price paid by the shareholders
at the time of increase. In the event that the Company's body which decided on the increase of
the capital fails to set the deadline for the exercise of the pre-emption right, then such deadline
or any extension thereof, is set upon decision of the Company's Board of Directors within the
period of time specified in article 20 of L. 4548/2018.
The invitation regarding the exercise of the pre-emption right should also specify the deadline
for the exercise of such right and is subject to publication by the Company in the Government
Gazette. Without prejudice to the provisions of paragraph 2 of article 25 of L. 4548/2018, the
invitation regarding the exercise of the pre-emption right and the notification regarding the
deadline set for the exercise of the pre-emption right, according to everything specified
hereinabove, may be omitted, provided that shareholders representing the entire share capital
were present in the meeting and provided that they were notified of the deadline set for the
exercise of the pre-emption right or declared that they have decided whether they shall exercise
or not the pre-emption right. The publication of the invitation may be replaced by a registered
letter, return receipt requested.
Upon decision of the General Meeting of the Company's Shareholders made in accordance with
the provisions of paragraphs 3 and 4 of article 130 and paragraph 2 of article 132 of L.
4548/2018, the pre-emption right specified in article 26 of L. 4548/1920, may be limited or
abolished. Such decision can only be made in the event that the Company's Board of Directors
has submitted to the General Meeting of the Company's Shareholders a written report specifying
the reasons why the pre-emption right should be curtailed or abolished and justifying the price
which is suggested for the issue of the new shares.The decision of the General Meeting is subject
to publication. There is no case of exclusion from the pre-emption right, according to everything
specified in the previous paragraph, when shares are taken by credit institutions or by
companies providing investment consulting services, which are entitled to accept title deeds for
safeguarding, according to everything specified in the previous paragraph, and in order to offer
them to the shareholders, in accordance with the provisions of paragraph 1 of article 26 of L.
4548/2018. In addition, there is no case of exclusion from the pre-emption right, when the
capital increase is intended to give employees a holding in the Company's share capital in
accordance with articles 113 and 114 of L. 4548/2018.
The Capital may be increased, in part, by contributions in cash and, in part, by contribution in
kind. In this case, the competent body which decides on the increase should declare that the
fact that shareholders who contribute in kind do not participate in the increase, which is made
by contribution in cash too, does not constitute an exclusion of theirs of the pre-emption right,
if the percentage of contributions in kind in comparison to the entire amount of increase is at
least equal to the percentage of share capital owned by those shareholders, who make the said
contributions. In case of increase of the capital partially by contribution in cash and partially by
contribution in kind, the value of contributions in kind should have been assessed, in accordance
with the provisions of articles 17 and 18 of L. 4548/2018, before any relevant decision is made.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
99
4. Upon decision of the General Meeting of the Company's Shareholders made, in accordance
with the provisions of paragraphs 3 and 4 of article 130 and paragraph 2 of article 132 of
L.4548/2018, a plan may be prepared for the disposal of shares to the members of the Board
of Directors and to the personnel of the Company and of other affiliated companies as defined
in article 32 of L.4308/2014, in the form of a pre-emption right (option), on the terms and
conditions of such decision, while a summary of such decision is subject to publication. Persons
who provide services to the Company on a regular basis can also be designated as beneficiaries
in the above plan. The nominal value of shares, which are disposed of according to the provisions
of this paragraph, can under no circumstances exceed one tenth (1/10) of the share capital,
which was paid up on the date when such decision was made by the General Meeting of the
Company's Shareholders. The decision of the General Meeting of the Company's Shareholders
specifies that, in order to satisfy the legal requirements with regard to the pre-emption right,
the Company will increase its share capital or will use shares, which are acquired or have been
acquired by the Company, in accordance with the provisions of article 49 of L. 4548/2018. In
any case, the decision of the General Meeting of the Company's Shareholders should specify the
highest number of shares which may be acquired or issued, in the event that the beneficiaries
shall exercise the above mentioned right of theirs, the price and the terms and conditions for
disposal of the shares to the beneficiaries, the beneficiaries or the categories of beneficiaries
and the method used for the determination of the price of acquisition thereof, without prejudice
to the provisions of paragraph 2 of article 35 of L. 4548/2018, the duration of the plan as well
as any other relevant term and condition. According to the same decision the beneficiaries or
the categories of beneficiaries, the way of exercise of the pre-emption right and any other term
and condition related to the plan for the disposal of shares. According to the terms and conditions
of the plan, the Company's Board of Directors issues for the beneficiaries who exercised their
right certificates proving that they have acquired shares and every three months maximum, it
delivers the shares which have already been issued or are issued and it delivers the shares to
the above named beneficiaries, by increasing the Company's share capital, while it confirms the
increase of the share capital.The decision of the Company's Board of Directors confirming the
payment of the amount of increase should be made every three months, in deviation of the
provisions of article 20 of L. 4548/2018.The provisions of article 26 of L. 4548/2018 do not apply
to those capital increases.
Upon decision made, in accordance with the provisions of paragraphs 3 and 4 of article 130, and
paragraph 2 of article 132 of L. 4548/2018, which is subject to publication, in accordance with
the provisions of article 12 of L.4548/2018, the General Meeting of the Company's Shareholders
is entitled to authorize the Company's Board of Directors to prepare a plan for the disposal of
shares, according to the provisions of the previous paragraph, by increasing the share capital,
if necessary, and by making all other relevant decisions. Such authorization is valid for five (5)
years, unless the General Meeting of the Company's Shareholders shall determine that it is valid
for a shorter period of time and that it is irrelevant to the powers and authorities of the
Company's Board of Directors, specified in paragraph 1 of article 24 of L. 4548/2018. The
resolution of the Company's Board of Directors shall be passed under the terms of article 113
of L. 4548/2018. The above do not apply where the plan for the disposal of shares has been
included in the approved remuneration policy.
With respect to the disposal of shares to members of the Board of Directors and/or employees
of the Company or its associated companies as defined in article 32 of L. 4308/2014 free of
charge, the provisions of article 114 of L. 4548/2018 shall apply. ″
c. Pursuant to the current Law 4548/2018 company may acquire own shares.
INTRALOT S.A., according to article 49, L. 4548/2018, and based on the resolution of the Shareholder’s
Annual General Meeting which took place on the 29.05.2020, has approved a buy-back program of up
to 10% of the paid share capital, for the time period of 24 months with effect from 29.05.2020 and until
29.05.2022, with a minimum price of €0.30 and maximum price of €12.00. It has also approved that
the own shares which will eventually be acquired may be held for future acquisition of shares of another
company or be distributed to the Company's employees or the staff of a company related with it.
During the FY of 2021, the Company sold 775.097 treasury shares (0,49% of the Company’s share
capital) at an average price of €0,163 per share, and a total value of €126,39 thousand.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
100
Until 31/12/2021 the Company holds 3.724.936 own shares (2,45% of the corporate share capital) with
average price €0,93 per share and a total amount of €3,464 thousand, subtracting 4.700.000 treasury
shares (2,99% of the share capital of the Company) that were cancelled from the Shareholder’s Annual
General Meeting dated 29.06.2021.
9. Key agreement by the Company, which becomes effective, is amended or
terminated in case the Company control changes hands following a public offer, and the
results of such agreement.
Some of the contracts of the INTRALOT Group include Change of Control clauses, which give the
counterparty state authority the right to check the persons acquiring a significant stake in the company
that manages the project and/or in the Parent Company, and/or the right to terminate the contract in
the event of significant findings as to the suitability of these persons.
In addition, the Group’s subsidiary, Intralot Capital Luxembourg S.A. (the Issuer) has issued a common
bond loan in the principal amount of €500,000,000 maturing in 2024 (hereafter in this paragraph
“Facility B”). Under the terms of the Facility B, in the event of a Change of Control, the holders of the
bond loan are given the right to request the Issuer to redeem the bonds held by them, or part thereof,
at 101% of their nominal value plus accrued interest up to the payment date. Within 30 days from the
date of the Change of Control, the Issuer (or the Parent Company) is obliged to inform the investing
public about the occurrence of the Change of Control. A Change of Control under Facility B is defined as
(1) the direct or indirect sale, transfer or other action having a similar effect of all or substantially all of
the assets of the Parent Company and its subsidiaries to any third party, (2) the dissolution and
liquidation of the Parent Company, (3) any transaction that would result in any third party (i.e., a Non-
Permitted Holder) acquiring more than 35% of the voting rights in the Parent Company without the
Permitted Holders having a larger percentage of voting rights at the same time; and (4) the replacement
of the majority of the members of the Board of Directors of INTRALOT S. A., within a period of two
years, with members not approved by the Board of Directors, as constituted on the date of issuance of
the above bond loan, or by one or more of the Permitted Holders.
In addition, the subsidiary of the INTRALOT Group, Intralot, Inc., (Issuer B) has issued a common bond
loan in the aggregate principal amount of USD254.042.911 maturing in 2025 (Facility SSN & Extra
Facility, jointly hereafter in this paragraph “Facility SSN”). Under the terms of the Facility SSN, in the
event of a Change of Control, the holders of the bond loan are given the right to request the Issuer B
to redeem the bonds held by them, or part thereof, at 101% of their nominal value plus accrued interest
up to the payment date. Within 30 days from the date of the Change of Control, the Issuer (or INTRALOT
S.A.) is required to inform the investing public of the occurrence of the Change of Control. A Change of
Control under the Facility SSN is defined (I) with respect to INTRALOT S.A. as (1) the direct or indirect
sale, transfer or other action having a similar effect of all or substantially all of the assets of the Company
and its subsidiaries; (2) the dissolution and liquidation of INTRALOT S.A, (3) any transaction that would
result in any third party (i.e. a Non-Permitted Holder) acquiring more than 33% of either the voting or
property rights in the shares of the Parent Company; and (II) with respect to the Parent Company of
the Issuer B, Intralot US Securities B.V. (1) the direct or indirect sale, transfer or other action having a
similar effect of all or substantially all of the assets of the Company and its subsidiaries to any third
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
101
party other than the Permitted Holders; (2) the dissolution and liquidation of the Company, (3) any
transaction that would result in any third party (i.e. a Non-Permitted Holder) acquiring more than 50%
of either the voting or property rights in the shares of the Parent Company; and (4) the merger of the
Parent Company, its subsidiary, Intralot US Holdings B.V., and the Issuer B with any other company of
the Intralot Group.
10. Any agreement between the Company and members of its BoD or its personnel providing
for indemnification in case of non-well founded resignation or dismissal or termination of
mandate/ employment due to a public offer.
There are no agreements between the Company and members of its BoD or its personnel providing for
indemnification in case of non-well founded resignation or dismissal or termination of mandate/
employment due to a public offer.
CORPORATE GOVERNANCE STATEMENT
Ι. Reference to the Corporate Governance Code the Company is subject to and the location
where this Code is available to the public.
This Corporate Governance Statement constitutes special part of the Annual Report of the Board of
Directors, according to the provisions of articles 152 and 153 of L 4548/2018.
The institutional framework governing the Company’s operation and obligations is L. 4548/2018 on the
reform of the law of sociétés anonymes and L. 4706/2020 on corporate governance. As a listed company
in the Athens Stock Exchange, the Company has additional obligations in respect of the individual
sections of governance, investors’ and supervisory authorities’ information, etc. The principal laws
describing and imposing the additional obligations are L. 4706/2020 and the Hellenic Capital Market
Commission decisions and circulars issued by delegated authority of the law (decisions no.
1Α/980/18.09.2020, 1/891/30.09.2020 as amended and in force,2/905/3.3.2021,circular
60/18.9.2020), 425/21.02.2022 document of the Hellenic Capital Market Commission with caveats,
clarifications and recommendations ,L. 3556/2007, L. 4374/2016, the ATHEX Exchange Rulebook, the
provisions of article 44 of L. 4449/2017 (Audit Committee), as amended by article 74 of L. 4706/2020
and in force, in conjunction with the caveats, clarifications and recommendations of document No.
1149/17.05.2021 of the Hellenic Capital Market Commission, as well as decision no. 5/204/14.11.2000
of the BoD of the Hellenic Capital Market Commission, as in force. The Company took care for the timely
adjustment of its corporate governance framework to the provisions of L. 4706/2020, as well as to the
decisions of the Hellenic Capital Market Commission, that were issued by delegated authority of said
law. The meeting of 30/06/2021 of the Board of Directors adopted the Hellenic Corporate Governance
Code (June 2021 edition) of the Hellenic Corporate Governance Council (HCGC) (hereinafter referred to
as the “Code”). The Code is available on the Company website http ://www.intralot.com along with its
English translation. During 2021, the Company complied with the provisions of the above Code, with
the deviations stated below., while it intends to adopt appropriate policies and proposals to minimize
existing deviations from the provisions of the Code.
ΙΙ Reference to corporate governance practices applied by the Company in addition to
provisions of the law, and reference to the location where they are published.
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The Company does not apply any other practices in additional to provisions of the applicable legal
framework related to corporate governance.
ΙΙI. Deviations from the Corporate Governance Code
Hellenic Corporate Governance Code
Explanation/Justification for the Deviation
from the Specific Practices of the Hellenic
Corporate Governance Code
2.2.15 The company ensures that the
diversity criteria concern, in addition to the
members of the Board of Directors, senior
and/or senior
management with specific representation
objectives by gender, as well as timetables
for achieving them.
The Company has not adopted a specific
diversity policy with regard to gender balance
for the senior and C-level executives.
However, the Company’s Code of Conduct
states that it operates under fair and lawful
human resource management procedures
without discrimination on the basis of age,
race, gender, color, national origin, religion,
health, political or ideological views, or other
characteristics of employees protected by
laws and regulations. The Company’s
objective is the fair and equitable treatment
of all employees, including their improvement
and development.
2.2.21 The Chair shall be elected by the
independent non-executive members.
In the event that the Chair is elected by the
non-executive members, one of the
independent non-executive members shall be
appointed, either as vice-chair or as a senior
independent member (Senior Independent
Director)
2.2.22. The independent non-executive Vice-
Chair or Senior Independent Director shall, as
appropriate, have the following
responsibilities:
To support the Chair, to act as a liaison
between the Chair and the members of the
Board of Directors, to coordinate the
independent non-executive members and
lead the evaluation of the Chair.
The Board of Directors has appointed a
Chairman, who is an Executive Member of the
Board, and a Non-Executive Vice Chairman,
who is not an Independent-Non-Executive
Member of the Board, but due to his long
experience and involvement in the
Company’s business activities as a former
CEO/General Manager of the Company for
more than twenty years, he contributes to the
adequate information of the Non-Executive
Members ensuring their effective
participation in the supervision and decision-
making process.
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2.3 Succession of the Board of Directors
2.3.1. The company has a framework for
filling positions and succession of the
members of the Board of Directors, in order
to identify the needs for filling positions or
replacements and to ensure each time the
smooth continuation of the management and
the achievement of the company's purpose
2.3.2. The company ensures the smooth
succession of the members of the Board of
Directors with their gradual replacement in
order to avoid the lack of management.
2.3.3. The succession framework shall in
particular take into account the findings of the
evaluation of the Board of Directors in order
to achieve the necessary changes in
composition or skills and to maximize the
effectiveness and collective suitability of the
Board of Directors.
2.3.4. The company also has a succession
plan for the Chief Executive. The preparation
of an integrated succession plan for the Chief
Executive shall be entrusted to the
nomination committee, which in this case
shall be responsible for:
• Identifying the required quality
characteristics that the Chief
Executive should have,
• The ongoing monitoring and
identification of potential internal
nominees,
• Where appropriate, the search for
potential external nominees,
• and a dialogue with the Chief
Executive on the evaluation of
nominees for his / her position and
other senior management positions.
The Suitability Policy describes the succession
plan for the members of the Board of
Directors involving the assistance of the
Remuneration and Nomination Committee for
the Election of Members of the Board of
Directors with consideration to individual and
collective suitability. The Company is in the
process of formulating and adopting a
succession plan for filling in the vacant
positions of the Members of the Board of
Directors and the Chief Executive Officer in
compliance with this specific practice. Until
then, in accordance with the Company’s
established practice, for the Executive
members of the Board of Directors and the
Chief Executive Officer (and/or his/her
deputies), who are employed under an
employment contract and are in charge of the
management and the achievement of the
Company’s purpose, the Company’s Human
Resources department ensures that there are
always candidates from the Company’s
existing employees to fill in the positions of
the Executive members of the Board of
Directors and/or the Chief Executive Officer
(and/or his/her deputies). With regard to the
succession, in particular, of Non-Executive
and Independent members of the Board of
Directors and the members of the Company’s
Committees (which are composed of
Independent Non-Executive members), the
Remuneration and Nomination Committee for
the Election of Members of the Board of
Directors ensures the identification, in
accordance with the principles of the
Company’s Suitability Policy, of the potential
suitable candidates for the Board of Directors,
whenever the issue of replacing existing
members of the Board of Directors arises in
accordance with the suitability and
independence requirements. To date, each
succession of members of the Board of
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
104
Directors and/or the Chief Executive Officer
has taken place smoothly ensuring the
seamless operation of the management, and
the efficiency and collective suitability of the
Board of Directors.
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105
2.4.7. The Chair of the Board of Directors may
be a member of the remuneration committee,
but may not chair it if he is not independent.
In the event that the Chair of the Board of
Directors is a member of the remuneration
committee, he cannot participate in the
determination of his remuneration. A
member of the committee to be appointed as
its Chair should have served on the
committee as a member for at least one year,
unless the committee has not been
established or operated in the previous
year.
The Chairman of the Board of Directors is not
a member of the Remuneration and
Nomination Committee for the Election of
Members of the Board of Directors. The
Chairman of the Remuneration and
Nomination Committee for the Election of
Members of the Board of Directors that was
formed by the Board of Directors of the
Company on 30.06.2021 is an Independent
Non-Executive member, elected for the first
time as a member of the Board of Directors
of the Company. Therefore, she has not
served as a member of the Remuneration and
Nomination Committee for the Election of
Members of the Board of Directors for at least
one year prior to her appointment as the
Chairman. The same applied to all the
Independent Non-Executive members of the
Board of Directors at the date of their election
(29.06.2021). As a result, based on the
current composition of the Board of Directors,
it is not feasible to comply with the above
Special Practice. However, based on her
resume, the Chairman of the Committee is
competent and has proven knowledge and
experience as well as organizational and
managerial skills for the position she has
been assigned to.
2.4.14 The contracts of the executive
members of the Board of Directors provide
that the Board of Directors may require the
refund of all or part
of the bonus awarded, due to breach of
contractual terms or incorrect financial
statements of previous years or generally
based on incorrect financial data, used for the
calculation of this bonus.
There is no such clause in the contracts of the
Executive members of the Board of Directors.
These contracts have been concluded on a
date prior to the entry into force of the
Hellenic Corporate Governance Code.
3.1.5 The chair shall work closely with the
Chief Executive and the Corporate Secretary
to prepare the Board of Directors and to fully
inform its members.
The positions of Chairman and CEO coincide
in the same person and there is no Company
Secretary.
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3.2. Corporate Secretary
3.2.1. The Board of Directors is supported by
a competent, qualified, and experienced
Corporate Secretary to comply with internal
procedures and policies, relevant laws, and
regulations and to operate effectively
and efficiently.
3.2.2. The Corporate Secretary shall be
responsible, in consultation with the Chair, for
ensuring immediate, clear and complete
information of the Board of Directors, the
inclusion of new members, the organization
of General Meetings, the facilitation of
communication of shareholders with the
Board of Directors and the facilitation of
communication of the Board of Directors with
senior management.
The Regulation for the Operation of the Board
of Directors provides for a Company
Secretary. The Board of Directors, however,
is not supported by a specifically appointed
Company Secretary, but follows an
alternative practice whereby these duties are
performed by the Company’s in-house
lawyers. This arrangement has served the
Company for many years. The need of
appointment of a specific person to this
position shall be considered in the future.
3.3.3 The Board of Directors annually
evaluates its effectiveness, the fulfillment of
its tasks and its committees.
3.3.4 The Board of Directors collectively, as
well as the Chair, the Chief Executive and the
other members of the Board of Directors are
evaluated annually for the effective
fulfillment of their duties. At least every three
years this evaluation shall be facilitated by an
external consultant.
3.3.5 The evaluation process shall be chaired
by the Chair in cooperation with the
nomination committee. The Board of
Directors also evaluates the performance of
its Chair, a process which is chaired by the
nomination committee.
3.3.8 The nomination committee shall
determine the evaluation parameters based
on best practices and shall propose the
following:
• evaluation of the Board of Directors,
• individual evaluations of the Chief
Executive and the Chair,
After the completion of the first year of
operation of the current Board of Directors,
considering that it was elected in June 2021,
the Company will review the effectiveness of
the members of the Board and its committees
in fulfilling their duties.
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107
• succession plan of the Chief Executive
and the members of the Board of
Directors,
• targeted composition of the Board of
Directors in relation to the company’s
strategy and suitability policy.
3.3.9. The overall evaluation shall take into
account the composition, diversity, and
effective cooperation of the members of the
Board of Directors for the fulfillment of their
duties
3.3.10. The individual evaluation shall take
into account the status of the member
(executive, non-executive, independent),
participation in committees, the undertaking
of specific responsibilities / projects, the time
devoted, the behavior and the use of
knowledge and experience.
3.3.12. The Board of Directors, under the
guidance of the nomination committee, shall
ensure the annual evaluation of the
performance of the Chief Executive. The
results of the evaluation should be
communicated to the Chief Executive and
taken into account in determining his or her
variable remuneration.
3.3.14 The chair of the committees of the
Board of Directors are responsible for the
organization of the evaluation of their
committees.
3.3.15 The results of the evaluation of the
Board of Directors shall be communicated and
discussed by the Board of Directors and shall
be taken into account in its work on the
composition, the plan for the inclusion of new
members, the development of programs and
other relevant issues of the Board of
Directors. Following the evaluation, the
Board of Directors shall take measures to
address the identified weaknesses.
3.3.16 The Board of Directors shall include in
the Corporate Governance Statement a brief
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
108
description of its individual and collective
evaluation process, of the committees, as
well as a summary of any findings and
corrective actions.
ΙV. Description of the main attributes of the Company’s and the companies included in the
consolidated financial statements taken as a total, internal audit and risk management
systems, in relation to the process of financial reports drafting.
• The BoD maintains an effective internal audit system whose purpose is to safeguard the
investments and assets of the Company and to identify and resolve major risks. The internal
audit system is defined as the set of procedures implemented by the Board of Directors, the
Management and the employees of the Company, and aims to ensure the effectiveness and
efficiency of corporate operations, the accuracy of financial reporting and the compliance with
applicable legislation and regulations.
• The Board of Directors monitor and regularly review the implementation of corporate strategy.
At the same time, it should regularly review the main risks faced by the company and the
effectiveness of the internal audit system regarding the management of said risks. The review
should comprise all vital audits, including financial and operational audits, compliance testing
and the monitoring of risk management systems. The Board of Directors, through the Audit
Committee, also develop direct and regular contact with external and internal auditors in order
to receive regular updates from the latter in relation to the proper operation of the control
system.
• The Board of Directors must certify in writing that the annual and interim financial statements
reflect objectively the financial position of the company and the companies included in the
consolidated financial statements taken as a total. This certification should follow the
corresponding certification by the Company auditors.
• The Board of Directors is responsible for the presentation of all significant business risks related
to the operation of the company and the companies included in the consolidated financial
statements taken as a total, providing explanations where it deems necessary, in the
preparation of annual and interim financial statements. All published interim and annual financial
statements include all necessary information and disclosures on the financial statements, in
accordance with International Financial Reporting Standards, as adopted by the European Union,
reviewed by the Audit Committee and approved in their entirety respectively by the Board of
Directors. The preparation of internal reports to the Management and the reports required by
L.4548/2018, the International Financial Reporting Standards and the supervisory authorities is
done by the Financial Management, which has the appropriate and experienced executives for
this purpose. The Management ensures that these executives are properly informed about the
changes in the accounting and tax issues concerning the Company and the Group.
• The Internal Audit Service has been appointed in accordance with the requirements of the Greek
legislation, has been sufficiently staffed and assesses the adequacy of internal controls. The
Internal Audit Service is independent from other business units, and in the fulfillment of its
duties, all documents, divisions and employees must be made available to it. The Internal Audit
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
109
Service reports to the Audit Committee of the Board of Directors. The Internal Audit Service
operates in accordance with a program established by it and approved by the Audit Committee
and the Board of Directors and submits reports on a three months basis before the publication
of financial information.
Responsibilities
The Head of Internal Audit has the responsibility to:
• Submit, at least annually, to the BoD Audit Committee a risk-based internal audit plan for review
and approval.
• Communicate to Senior Management and the BoD Audit Committee the impact of resource
limitations on the internal audit plan.
• Review and adjust the internal audit plan, as necessary, in response to changes in Intralot Group’s
business, risks, operations, systems and controls.
• Communicate to Senior Management and BoD Audit Committee any significant interim changes to
the internal audit plan.
• Ensure each engagement of the internal audit plan is executed, including the establishment of
objectives and scope, the assignment of appropriate and adequately supervised resources, the
documentation of work programs and testing results, and the communication of engagement results
with applicable conclusions and recommendations to appropriate parties.
• Draft Audit Reports embedding the findings, the risks and respective recommendations for
improvement, along with the auditees' Management response, i.e. the mutually agreed corrective
actions (Action Plan) with predetermined deadlines or equivalent measures and/or the
acknowledgment of particular risks (Risk Acceptance), and the finalized audit conclusions, which are
issued and distributed to the Senior Management. The approved remedial actions which address the
findings identified in the Audit Reports must be completed by the auditees, within agreed deadlines.
The Internal Audit Unit monitors and evaluates the proper implementation and completion of all the
restorative measures required to mitigate the corresponding risks, through follow up audit
procedures.
• Report periodically to Senior Management and the BoD Audit Committee any corrective actions
not effectively implemented.
• Ensure the Internal Audit Unit collectively possesses or obtains the knowledge, skills, and other
competencies needed to meet the requirements of the Internal Audit Unit Charter.
• Ensure trends and emerging issues that could impact Intralot Group are considered and
communicated to Senior Management and the Audit Committee as appropriate.
Furthermore, the Internal Audit Unit:
• Monitors and evaluates of the implementation of the Company’s Internal Regulation and the
system of internal controls, particularly concerning the adequacy and accuracy of the financial and
non-financial information, the risk management, the regulatory compliance and the Code of
Corporate Governance adopted by the Company.
• Monitors the compliance with the Articles of Association and, in general, the legislation governing
the Company, particularly the stock market and Société Anonyme companies’ legislation.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
110
• Provides assurance on the compliance with the commitments outlined in Company’s press releases
and business plans concerning the utilization of the funds raised from the regulated stock market.
Moreover, the Head of Internal Audit:
• Reports to the Board of Directors of cases of conflict of interest between the members of the Board
of Directors or the management executives and the Company, detected during the performance of
his/ her duties.
• Communicates to the BoD Audit Committee of the audit results at least quarterly.
• Discloses of any information requested in writing by the Supervisory Authorities, collaborates with
them and facilitates their monitoring, audit and supervising activities in every possible way.
• Is also present at the General Assembly Meetings of the Shareholders.
• The members of the Board of Directors, through the Audit Committee and the Internal Audit
Service, are ultimately responsible for ensuring the adequacy and effectiveness of the internal
control system and the monitoring and supervision of its effective implementation. The
Management of the Company is responsible for the development of a strategy for the Board of
Directors as regards a secure internal control system.
• The Internal Audit Service adopting a systematic and professional approach to the improvement
of the effectiveness of risk management procedures, internal audit systems and corporate
governance.
Specifically,
• Risks be identified and managed effectively.
• Resources (assets) of the Company be protected and used efficiently.
• Financial and management reporting be reliable, accurate and current.
• Employees comply with the policies, procedures and standards of the Company.
• Company conformance with the regulatory framework governing its operation.
• The Internal Audit Service, throughout the audit process, presents proposals aiming to
continuously improve internal control systems in order to achieve high productivity and
efficiency.
V. Information demanded by the article 10 par. 1 of Directive 2004/25/EK of the European
Parliament and Council.
The information demanded by article 10 par. 1 of Directive 2004/25/EK of the European Parliament and
Council is included, according to article 4 par. 7 of L. 3556/2007, in the Explanatory Report which
comprises part of the Annual Report of the Board of Directors.
VI. Information regarding the function of the General Meeting of shareholders and its main
authorities, description of shareholders’ rights and of the manner they are exercised.
The General Meeting of the Company's shareholders is the supreme body of the Company and it is
entitled to decide on every Company issue as per L. 4548/2018. The decisions of the General Meeting
shall also be binding on absent or dissenting shareholders.
The General Meeting of the Company's Shareholders is the sole competent body to decide on the
following issues:
a) Modifications of the Articles of Association; Modifications include increases, regular or
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
111
extraordinary, and decreases of the share capital;
b) Election of members of the Board of Directors, and auditors;
c) The approval of the overall management as per article 108 of L.4548/2018 and the discharge
of auditors;
d) Approval of the annual and any consolidated financial statements;
e) Distribution of annual profits;
f) The approval of the provision of remuneration or advance payments as per article 109 of
L. 4548/2018;
g) The approval of the overall remuneration policy as per article 110 of L. 4548/2018 and of the
remuneration report as per article 112 of L. 4548/2018;
h) The merger, splitting, transformation, revival, extension of the duration or the dissolution of the
Company; and
i) Appointment of liquidators.
The General Meeting shall meet at the registered head office of the company or in the district of another
municipality within the district of the Company's registered head office or of another municipality
adjacent to the Company's registered head office or in the district of the municipality where the
registered head office of the Athens Stock Exchange is located. The General Meeting can meet anywhere
when shareholders with voting rights representing the entire capital are present or represented in the
meeting and no shareholder objects to the convening of the meeting and to any decision-making.
With the exception of repetitive meetings, the invitation to the General Meeting must be published at
least twenty (20) full days before the day of the meeting.
The invitation to the General Meeting of the Company's Shareholders should clearly specify the date and
time of the meeting, the premises - exact address where the meeting shall take place as well as the
agenda items. It should also specify the shareholders being entitled to participate in the meeting and
any instructions as regards the way in which those shareholders shall participate in the meeting and
shall exercise their rights, in person or through a representative or from a distance. Furthermore, the
invitation to the General Meeting should specify everything provided for in paragraph 4 of article 121 of
L.4548/2018 and be published in accordance with the provisions of article 122 of L. 4548/2018. No
other invitation to the repetitive meeting is required, if the initial invitation specifies the place and date
of the repetitive meeting, provided that the repetitive meeting shall be convened at least five (5) full
days after the meeting which was adjourned.
Right to attend General Assemblies
Every shareholder is entitled to participate and vote in the General Meeting of the Company's
Shareholders either in person or through a representative, in accordance with the provisions of articles
124 and 128 of L. 4548/2018.
Shareholders who have not complied with the deadline of paragraph 4, article 128 of L. 4548/2018
participate in the General Meeting unless the General Meeting refuses their participation for serious
cause justifying such refusal.
Quorum Majority
A quorum is present and the General Meeting validly convenes on the items of the agenda, when
shareholders representing one fifth (1/5) of the paid up capital are present in person or by proxy. If
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
112
such quorum fails to be present in the first meeting, the General Meeting shall be held again within
twenty (20) days of the date of postponement, by invitation with notice of at least ten (10) days. The
repetitive General Meeting is considered to have reached a quorum and validly meets in order to discuss
the initial agenda items regardless of the part of the paid-up capital being represented therein. No other
invitation to the repetitive meeting is required, if the initial invitation specifies the place and date of the
repetitive meetings, provided that the repetitive meeting shall be convened at least five (5) full days
after the meeting which was adjourned.
The decisions of the General Meeting of the Company's Shareholders are made by absolute majority of
votes being represented in the meeting.
Exceptionally, the General Meeting is considered to have reached a quorum and validly meets in order
to discuss the agenda items when shareholders representing at least one half (1/2) of the paid-up capital
are present or represented therein, and in order to make decisions related to:
a) change of the Company's nationality;
b) alteration of the Company’s object of activities
c) increase of the shareholders' obligations;
d) regular capital increase, unless required by law or made through capitalization of
reserves;
e) the decrease of the capital unless it is made as per paragraph 5 of article 21 of L.
4548/2018 or paragraph 6 of article 49 of L. 4548/2018;
f) alteration of the manner of distribution of profits,
h) the merger, splitting, transformation, revival, extension of the duration or the
dissolution of the Company;
i) the provision or renewal of power to the Board of Directors for a capital increase in
accordance with paragraph 2 of article 5 hereof; and
j) any other case for which the law provides that the General Meeting decides with
increased quorum and majority.
In the case of the preceding paragraph, if the quorum required by the last subparagraph is not reached,
the General Meeting is invited and meets again in accordance with paragraph 2 of article 13 hereof and
is in quorum and meets validly on the issues of the original agenda when shareholders representing at
least one-fifth (1/5) of the paid up capital are present or represented therein. No other invitation to the
repetitive meeting is required, if the initial invitation specifies the place and date of the repetitive
meetings, provided that the repetitive meeting shall be convened at least five (5) full days after the
meeting which was adjourned.
Rights of the Shareholders
Shareholders have the right to attend General Meetings in person or by proxy, shareholder or not. Each
share entitles the owner to one vote.
Priority right
In case of increase of the Company’s share capital, when that increase is not happening by contribution
in kind or by issue of convertible bonds, priority rights for the entire new capital or the bond issue, are
granted to the shareholders at the date of issue, proportionate to their holding in the existing share
capital.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
113
According to article 27 of L. 4548/2018, priority right of article 26 of L. 4548/2018 may be limited or
abolished, by decision of the General Meeting of Shareholders made by an increased quorum and
majority, pursuant to the provisions of articles 130 par. 3 and 4 and par. 2 of article 132 of L. 4548/2018.
Minority rights
Upon request of shareholders representing one twentieth (1/20) of the paid up capital, the Company's
Board of Directors is obliged to convene an Extraordinary General Meeting of the Company's
Shareholders, by setting the date of such meeting not later than forty-five (45) days from the date when
the relevant request was served upon the President of the Board of Directors. The request should
specify accurately the agenda items. In the event that the General Meeting of the Company's
Shareholders shall not be convened within twenty (20) days from the service of the relevant request,
then it should be convened by the shareholders who submitted the above request at the expense of the
Company, by virtue of a judgment of the Single-Member First Instance Court in the district where the
Company's registered head office is located and such judgment should be issued according to the
proceedings of interim and precautionary measures and it should specify the place and time of the
General Meeting and the agenda items.
Upon request of shareholders representing one twentieth (1/20) of the paid up capital, the Company's
Board of Directors is obliged to add to the existing agenda items of the General Meeting of the Company's
Shareholders which has already been convened any other items, provided that the relevant request has
been submitted to the Company's Board of Directors at least fifteen (15) days prior to the General
Meeting. Those items which shall be added should be published or should be communicated by the
Company's Board of Directors, according to the provisions of article 122 of L. 4548/2018, at least seven
(7) days prior to the General Meeting. The request to add those additional items to the existing agenda
items should also specify the respective reasons or it should contain a draft decision which should be
approved by the General Meeting of the Company's Shareholders, while the revised agenda items should
be published according to everything provided for as regards the publication of the previous agenda
items, thirteen (13) days prior to the date of the General Meeting of the Company's Shareholders and
it should be available for the shareholders at the website of the Company together with the reasons or
the draft decision which has been submitted by the shareholders in accordance with the provisions of
article 123 of L.4548/2018. Should such issues be not published, the applicant shareholders are entitled
to request the adjournment of the General Meeting, under paragraph 5 of article 141 of L.4548/2018,
and to proceed themselves to the publication, as per the specifications of the second item of the present
paragraph, at the expenses of the company.
Shareholders representing one twentieth (1/20) of the paid-up capital are entitled to submit draft
decisions on items included in the initial or any revised agenda of the General Meeting. The relevant
request must be received by the Company's Board of Directors at least seven (7) days before the date
of the General Meeting and the draft decisions must be made available to the Company's shareholders
in accordance with the provisions of article 123, par. 3 of L. 4548/2018 at least six (6) days before the
date of the General Meeting.
The Board of Directors is under no obligation to record matters in the agenda, publish or notify them
along with justification and drafts of resolutions submitted by the shareholders, should their content
evidently opposes to the law or the public morality.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
114
Upon request of the shareholder(s) representing one twentieth (1/20) of the paid up capital, the
President of the General Meeting is obliged to postpone just once any decision-making by the Ordinary
or Extraordinary General Meeting, by setting as date for the continuation of the meeting as regards any
decision-making, the date designated in the Shareholders' request, and in any case, a date not later
than twenty (20) days from the date of postponement. The upon adjournment general meeting is a
continuation of the previous meeting and no reiteration of the shareholders’ invitation publication
formalities is required; moreover, to this meeting may participate even new shareholders, by abiding
by the provisions of paragraph 6 of article 124 of L. 4548/2018.
Upon request of any shareholder which should be submitted to the Company at least five (5) full days
prior to the General Meeting, the Company's Board of Directors is obliged to provide to the General
Meeting specific information requested with regard to the Company's affairs, to the extent that such
information is relevant to the agenda items. The Board of Directors is not obliged to provide the
information requested, when such information is already available at the Company's website, and
particularly in the form of questions - answers. Furthermore, upon request of shareholders representing
one twentieth (1/20) of the paid up capital, the Company's Board of Directors is obliged to notify the
Ordinary General Meeting of the Company's Shareholders of the amounts paid by the Company due to
any reason whatsoever during the last two years to the members of the Board of Directors or the
Company's managers as well as of any remuneration paid to those persons as a result of any contract
whatsoever concluded between them and the Company. In all the above-mentioned cases, the Board
of Directors may refuse to provide the information requested for good reasons, while those reasons
should be mentioned in the minutes of the meeting. In the cases set out in this paragraph, the Board
of Directors may provide a single answer to any shareholders’ requests relating to the same matter.
Upon request of shareholders representing one tenth (1/10) of the paid up capital, which should be
submitted to the Company within the deadline specified in the previous paragraph, the Company's Board
of Directors is obliged to provide to the General Meeting of the Company's Shareholders any information
on the Company's course of business operations and on the Company's assets. The Board of Directors
may refuse to provide the information requested for good reasons, while those reasons should be
mentioned in the minutes of the meeting.
Upon request by shareholders representing 1/20 of the paid-up capital, the voting on an item or items
on the agenda shall be made by an open vote.
Shareholders of the Company representing at least one twentieth (1/20) of the paid-up capital may
request the extraordinary audit of the Company by the court which shall hear the case under the ex
parte proceedings.
Shareholders of the Company representing one fifth (1/5) of the paid up capital are entitled to request
from the court the audit of the Company, where from the course of the Company's business operations
as a whole, and based on specific indications, it is believed that the management of the Company's
corporate affairs is not exercised according to the criteria of sound and prudent management.
Right to Dividends
According to the Articles of Association, the Company must distribute annually minimum dividend equal
to the minimum annual dividend projected by law (Article 161 of L. 4548/2018), which amounts to at
least 35% of the company’s net profit, following the deduction necessary for the establishment of
statutory reserves.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
115
The place and method of payment is announced in notices published in the press, the Daily Official List
and the website of the ATHEX and the Company website.
Dividends are paid within two (2) months of the date of the Annual General Meeting of Shareholders
which approves the Company’s Financial Statements.
Dividends which remain unclaimed for a period of five years of the date they became payable, are
forfeited to the State.
Rights in product of liquidation
On conclusion of the liquidation, the liquidators return the contributions of the Shareholders in
accordance with the Articles of Association and distribute the balance of the Company’s assets’
liquidation to the Shareholders in proportion to their share in the paid-up capital of the Company.
VΙI. Composition and manner of operation of the Board of Directors and other administrative,
management or supervisory bodies or committees of the Company.
The purpose of the Board is the continuous enhancement of the long-term economic value of the
Company and the safeguarding of general corporate interests. The Board of Directors is responsible for
deciding on all matters pertaining to the management of the Company, administering company assets
and the general pursuit of the company’s purposes without any limitation (apart from matters pertaining
exclusively to the General Meeting) and representing the Company both judicially and extra-judicially.
Composition
In accordance with Article 18 of its Articles of Association, the Company is governed by a Board of
Directors, consisting of seven (7) to eleven (11) members, whose responsibilities are described in the
Law and the Articles of Association of the Company. The Board of Directors, as a whole, has sufficient
knowledge and experience in the activities of the Company, so as to be able to exercise supervision
over all of the Company’s operations.
The members of the Board of Directors are elected by the General Meeting of the Company’s
Shareholders and can be executive, non-executive and independent non-executive members in
accordance with the provisions of Law 4706/2020.
The Board of Directors convenes following a meetings schedule, adopts an annual action plan, takes
decisions, exercises control over all of the Company’s activities and supervises the Company’s
executives who have been assigned with relevant executive responsibilities, either in accordance with
the organizational chart or directly by the Board of Directors itself on a continuous basis.
The members of the Board of Directors are always eligible for re-election and can be recalled at any
time by the General Meeting, regardless of the expiry of their term of office.
The Company's current Board of Directors consists of nine (9) members and was elected by the Ordinary
General Meeting of shareholders of 29 June 2021, for a six-year term, has the following composition.
and construction of the Board of Directors consisting of:
1. Socratis P. Kokkalis, Chairman and CEO, executive member,
2. Constantinos G. Antonopoulos, Vice Chairman, non-executive member,
3. Chrisostomos D. Sfatos, Deputy CEO, executive member,
4. Nikolaos I. Nikolakopoulos, Deputy CEO, executive member,
5. Fotios L. Konstantellos, Deputy CEO, executive member,
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
116
6. Alexandros- Stergios, N. Manos, Director, non-executive member,
7. Ioannis K. TsoumasDirector, independent-non-executive member,
8. Αdamantini K. Lazari, independent-non-executive member, and
9. Dionysia D. Xirokosta, independent-non-executive member,
It is noted that the criteria of independence of the article 9, of the Law 4706 are met by all the non-
executive members of the Board of Directors that have been appointed by the General Meeting of the
Shareholders of the Company
Information on the number of shares held by each member of the Board of Directors and each chief
executive of the Company dated 31.12.21
NAME
CAPACITY
NUMBER OF
SHARES
%
SOCRATIS KOKKALIS*
CHAIRMAN OF THE BOARD OF DIRECTORS
& CHIEF EXECUTIVE OFFICER - EXECUTIVE
MEMBER
31.800.000
20,89%
CONSTANTINOS ANTONOPOULOS
VICE PRESIDENT OF THE BOARD OF
DIRECTORS - NON-EXECUTIVE MEMBER
4.299.300
2,82%
NIKOLAOS NIKOLAKOPOULOS
DEPUTY CHIEF EXECUTIVE OFFICER -
EXECUTIVE MEMBER
5.000
0,00%
CHRYSOSTOMOS SFATOS
DEPUTY CHIEF EXECUTIVE OFFICER -
EXECUTIVE MEMBER
0
FOTIOS KONSTANTELLOS
DEPUTY CHIEF EXECUTIVE OFFICER -
EXECUTIVE MEMBER
0
ALEXANDROS STERGIOS MANOS
MEMBER OF THE BOARD – NON-EXECUTIVE
MEMBER
0
IOANNIS TSOUMAS
MEMBER OF THE BOARD – INDEPENDENT
NON-EXECUTIVE MEMBER
0
ADAMANTINI LAZARI
MEMBER OF THE BOARD – INDEPENDENT
NON-EXECUTIVE MEMBER
0
DIONISIA XIROKOSTA
MEMBER OF THE BOARD – INDEPENDENT
NON-EXECUTIVE MEMBER
0
ANASTASIOS TSOUFIS**
MEMBER OF THE BOARD – INDEPENDENT
NON-EXECUTIVE MEMBER
30.000
0,02%
IOANNIS TSOUKARIDIS***
MEMBER OF THE BOARD – INDEPENDENT
NON-EXECUTIVE MEMBER
0
*Mr. Socratis Kokkalis owned indirect 20.885% of the corporate share capital as of 31/12/2021, through
ALPHACHOICE SERVICES LTD, a company 100% controlled by the company “K-SYSTEMS”, 100%
controlled by Mr. Socratis P. Kokkalis.
** Mr Anastasios Tsoufis was member of the BoD until 28.06.21
***Mr Ioannis Tsoukaridis was member of the BoD until 28.06.21
TOP MANAGMENT
NAME
CAPACITY
NUMBER OF SHARES
%
ANDREAS CHRYSOS
GROUP CHIEF FINANCIAL OFFICER
0
DIMITRIOS KREMMYDAS
GROUP CHIEF LEGAL & COMPLIANCE OFFICER
40.000
0,026%
BoD members’ participations in other companies
Except where participating in companies that are parties related to the Company, per the meaning of
Annex A of L. 4308/2014, the Company’s BoD members, are not members of another legal entity’
governing, management or supervisory body, with the following exceptions:
NAME
CAPACITY
PARTICIPATION IN
ANOTHER COPMANY
SOCRATIS KOKKALIS
CHAIRMAN OF THE BOARD OF DIRECTORS & CHIEF
EXECUTIVE OFFICER - EXECUTIVE MEMBER
INTRACOM HOLDINGS
CHAIRMAN OF THE
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
117
BOARD, EXECUTIVE
MEMBER
INTRAKAT S.A
TECHNICAL AND ENERGY
PROJECTS CHAIRMAN OF
THE BOARD, NON-
EXECUTIVE MEMBER
K-SYSTEMS CHAIRMAN
OF THE BOARD & CEO
INTRACOM
TECHNOLOGIES S.a.r.l.
DIRECTOR
INTRACOM GROUP USA,
INC CHAIRMAN OF THE
BOARD
KOKKALIS FOUNDATION
CHAIRMAN OF THE
BOARD
CONSTANTINOS
ANTONOPOULOS
VICE PRESIDENT OF THE BOARD OF DIRECTORS - NON-
EXECUTIVE MEMBER
INSPIRING EARTH A.E
CHAIRMAN & CEO
NETLINK MAE
CEO
NETLINK
TECHNOLOGIES Μ.Α.Ε
PRESIDENT & CEO
CYBERFLIP S.A. CEO
DIGITAL PLANET A.E
MEMBER OF THE BOD
SITIA OLIVE OIL SA
MEMBER OF THE BOD
GREEK ASIA BUSINESS
COUNCIL CHAIRMAN OF
THE BOARD
GREEK-LATIN BUSINESS
COUNCIL CHAIRMAN OF
THE BOARD
CULTURAL
ASSOCIATION OLENI
CHAIRMAN OF THE
BOARD
CHRYSOSTOMOS SFATOS
DEPUTY CHIEF EXECUTIVE OFFICER - EXECUTIVE MEMBER
-
NIKOLAOS NIKOLAKOPOULOS
DEPUTY CHIEF EXECUTIVE OFFICER - EXECUTIVE MEMBER
-
FOTIOS KONSTANTELLOS
DEPUTY CHIEF EXECUTIVE OFFICER - EXECUTIVE MEMBER
-
ALEXANDROS STERGIOS
MANOS
MEMBER OF THE BOARD – NON EXECUTIVE MEMBER
NETCOMPANY -
INTRASOFT SA CEO
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
118
NETCOMPANY -
INTRASOFT USA INC.
PRESIDENT &
CEO
INTRASOFT JORDAN
limited liability company
MEMBER OF THE BOD
INTRASOFT MIDDLE
EAST FZC (UAE)
MEMBER OF THE BOD
NETCOMPANY -
INTRASOFT EAST
AFRICA LIMITED
MEMBER OF THE BOD
WEMETRIX S.A. MEMBER
OF THE BOD
INTRASOFT
INTERNATIONAL DOHA
LLC PRESIDENT
INTRASOFT
INTERNATIONAL ZAMBIA
LIMITED DIRECTOR
ECONAIS INC.
Information MEMBER OF
THE BOD
MYRMEX INC. MEMBER
OF THE BOD
ΙΝΤΡΑΣΟΦΤ ΑΝΩΝΥΜΗ
ΕΤΑΙΡΕΙΑ
ΠΛΗΡΟΦΟΡΙΚΗΣ –
ΙΝΤΡΑΣΟΦΤ Α.Ε. CEO
INTRASOFT
INFORMATION
TECHNOLOGY UK
LIMITED CEO
INCELLIGENT Co-
Manager
IOANNIS TSOUMAS
MEMBER OF THE BOARD – INDEPENDENT NON-EXECUTIVE
MEMBER
RETIRED ECONOMIST
INTRACOM HOLDINGS -
INDEPENDENT NON-
EXECUTIVE MEMBER
INTRAKAT S.A
TECHNICAL AND ENERGY
PROJECTS
INDEPENDENT NON-
EXECUTIVE MEMBER
ADAMANTINI LAZARI
MEMBER OF THE BOARD – INDEPENDENT NON-EXECUTIVE
MEMBER
Intracom Holdings:
Independent, non-
executive board member
Domius Capital Advisors
LLP: CONSULTANT TO
THE BOARD
Nea Georgia - Nea Genia
AMKE: Founding
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
119
CVs
SOKRATIS P. KOKKALIS
Visionary founder of INTRALOT and majority shareholder of the INTRACOM Group.
He launched the first advanced technology hub in Greece in 1977. A leading member of the Greek
business community, he is an active sponsor of leading educational, cultural and athletic initiatives in
SE Europe. With degrees in Physics and Electronics, he became a John Harvard Fellow in 1997 after
establishing the Kokkalis Program at Harvard University’s Kennedy School of Government. In 1998 he
founded the non-profit Kokkalis Foundation, a public benefit institution focusing on educational and
regional development. A fluent speaker of English, German and Russian, he also speaks Romanian,
Italian, Bulgarian and conversational Serbian and French. For many years he was the president and
major shareholder of Olympiacos FC, Greece’s leading football club.
CONSTANTINOS G. ANTONOPOULOS
Founding member and shareholder of INTRALOT, which he led as CEO for more than twenty years
(1992-2013). He received numerous distinctions, including Manager of the Year 2013 and was inducted
in the Lottery Industry Hall of Fame in 2007. With degrees in Electrical Engineering and Systems
Reliability, he has held senior positions in both the public and private sectors. He currently participates
in a number of bilateral chambers and associations and is a member of the General Council of the
Hellenic Federation of Enterprises (SEV) and the Hellenic Entrepreneurs Association.
CHRYSOSTOMOS D. SFATOS
Chrysostomos Sfatos main areas of expertise are in Strategy, Communication, International Relations,
and Corporate Affairs. He was appointed Deputy CEO of INTRALOT in January 2019. Prior to that, he
served as Group Director of Corporate Affairs at INTRALOT, Chief Communications Officer at INTRACOM
Holdings, Executive Director of the Kokkalis Foundation and Member of the BoD of Athens Information
Technology Center. He holds a Chemistry PhD from Harvard University and a Bachelor's degree from
the University of Athens.
NIKOLAOS Ι. NIKOLAKOPOULOS
As Group Deputy CEO, Nikos Nikolakopoulos is supervising the Commercial and Operations
divisions.Prior to his current appointment, he served as Group Chief Commercial Officer, Group Chief
member, Member of the
General Assembly, non-
executive member of the
Board
Chairman of the
Investment Committee
of ETAO (Professional
Fund of Economists)
DIONISIA XIROKOSTA
MEMBER OF THE BOARD – INDEPENDENT NON EXECUTIVE
MEMBER
LAWYER
HELLENIC
SUPERMARKETS
SKLAVENITIS SA
Corporate Affairs
Consultant
INTRAKAT S.A
TECHNICAL AND
ENERGY PROJECTS
INDEPENDENT NON-
EXECUTIVE MEMBER
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
120
Operating Officer, Group President Latin America, Western Europe & Africa, and Managing Director of
INTRALOT Latin America.
Before joining INTRALOT in 2007 as Group Strategy Director, he held leading positions in multinational
IT companies, including the INTRACOM Group, Microsoft, SingularLogic, and Bull. He holds a Bachelor’s
degree in Information Technology from the Athens University of Economics and Business and an MBA
from La Verne University.
FOTIS L. KONSTANTELLOS
As Group Deputy CEO, Fotis Konstantellos is supervising the Group strategy in Technology and delivery
of INTRALOT solutions and services to our jurisdictions worldwide. Prior to this role, he served as Group
Chief Technology Officer and he has led INTRALOT’s Lotteries, Product Transformation, Customer
Experience, and Digital Gaming divisions. Before joining INTRALOT during the 25 years of his
professional career he served as Chief Commercial Officer of Hellas Online, a telecom provider and in
various positions including technical, operations, project management and commercial development at
the telecoms operators Vodafone and Wind.He holds a Bachelor’s degree in Electrical Engineering from
the Swinburne University of Technology, Melbourne Australia.
ALEXANDROS STERGIOS MANOS
Mr. Alexandros Manos is a seasoned executive with over 18 years’ experience leading companies in
developing, marketing and selling internationally cutting edge technologies.
He holds a B.Sc. in Electrical Engineering and a BA in Business Economics from Brown University, and
an MSc in Electrical Engineering & Computer Science from the Massachusetts Institute of Technology.
Since January 2015, he is a member of the Board of Directors & holds the Chief Executive Officer position
of INTRASOFT International, a Luxembourg based leading European IT Solutions and Services Group of
Companies.
Previously held positions include:
• Board Member & CEO of Intracom Telecom, an international telecommunication systems vendor
• CEO of Conklin Corporation in Atlanta, Georgia, a company offering roadband solutions and IPTV to
the US market.
He is a member of a several scientific, engineering and economics societies and a young global leader
of WEF.
IOANNIS K. TSOUMAS
Mr. Ioannis Tsoumas holds a bachelor’s degree in Business Administration from the Athens University
of Economics and Business.He has over 35 years of experience in the field of finance, the full range of
accounting functions, and tax legislation. During his career, he has received several distinctions for his
competencies and achievements, and he attended numerous professional seminars on Accounting,
Auditing and Taxation acquiring in-depth knowledge and expertise.Prior to his role as a Non-Executive
Member of the company’s BOD, he held senior management positions in Accounting and Finance in
several companies, among them Grundig of the Hatzimichalis Group (1980 – 1987) and Intracom Group
(1987 – 2016), until his retirement in October 2016.
ADAMANTINI LAZARI
Mrs. Adamantini Lazari is an Independent Non-Executive Member of the Company’s BoD since 2021.Mrs.
Lazari holds a Bachelor in Economics from the Economic University of Athens, a Master of Science in
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121
Industrial Relations and Personnel Management from the LSE and a European Master in Multimedia and
Audiovisual Business Administration from a European interuniversity post-graduate program.
Currently, she is Senior Advisor to the Board of Domius Capital Advisors LLP (a London-based, FCA
regulated, Corporate Finance Advisory Boutique focusing on the provision of Strategic Advice, M&A
execution and Private Capital raising for Funds and corporates), as well as member of the Investment
Committee of Economists Professional Fund.She has long-term experience in both the private and public
sector. She also has knowledge of the international political and economic environment and proven
experience in multinational/multicultural negotiations.In the private sector she has served in senior
managerial positions mainly in the financial sector, among others, Deputy Governor/Executive Vice
Chairwoman of the Board of Directors, Agricultural Bank of Greece - Senior Advisor to the management,
Emporiki/Commercial Bank of Greece. She has also participated as a member of BoDs in numerous
companies and organizations i.a. Athex Exchange Group, Selonda group/ fisheries, Perseas/ fish feed,
Hellenic Sugar Industry SA.In the public sector she has served as senior advisor mainly on issues of
public policy preparation and implementation. She has also participated in inter-ministerial committees
on important economic and social issues.
DIONYSIA XIROKOSTA
Mrs. Dionysia Xirokosta is an Independent Non-Executive Member of the Company’s BoD since
2021. Dionysia Xirocosta is a lawyer who has worked as a scientific associate of the Hellenic
Competition Commission from 2001. She was appointed Head of the Legal Services Department in
2007. In 2009 she was appointed Director of the Legal Services Department. In 2010 she became
the Director General of the Hellenic Competition Commission and acted for two full terms.She then
moved to the retail sector and was the Human Resources Director at “HELLENIC HYPERMARKETS
SKLAVENITIS S.A.”. Currently she practices law and is a Consultant of Corporate Affairs at
“HELLENIC SUPERMARKETS SKLAVENITIS S.A.”.
She has graduated from Athens Law School and holds an LL.M. degree in European Law from
University of Essex Law School, specialized in European Competition Law.The aforementioned CVs
reflect the knowledge, skills and experience required by the BOD to exercise its responsibilities, in
accordance with the suitability policy and the business model strategy of the Company.
TOP MANAGEMENT
Andreas Chrysos
Group Chief Financial Officer
Andreas Chrysos is INTRALOT’s Chief Financial Officer since 2019 having served previously as Group’s
Budgeting and Controlling Director.
Prior to INTRALOT, in his 15 year professional experience he held senior management positions in major
telecom companies including Vodafone and Hellas Online. He holds a Bachelor's degree in Economics
from the National and Kapodistrian University of Athens as well as an MSc in International Business and
Finance from the University of Reading.
DIMITRIOS KREMMYDAS
Mr. Dimitrios Kremmydas holds a degree in Law of the Athens University. He is a lawyer since 1994,
member of the Athens Bar Association and he cooperates as in-house lawyer with Intralot’s group since
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2001; he holds the position of the Group Chief Legal & Compliance Counsel. He serves in many
subsidiaries’ board of directors. He has handled complex commercial arrangements, mergers,
acquisitions, financial restructurings, tender procedures, competition and compliance matters and
several corporate cases in Greece and abroad.
The CVs of all members of the Board of Directors and the Top Management are available on the
Company's website ( http://www.intralot.com ).
Board of Director Meetings
The Board of Directors may validly convene, in addition to the company headquarters, elsewhere in
Greece or abroad. The Board of Directors may also convene via teleconference; in such case, the
invitation to the Board members includes information relevant to the teleconference.
The Board of Directors shall convene with the frequency required to ensure the effective performance
of its duties and at least once per month.
The Chairman will preside over meetings of the Board of Directors and in the case of being absent, the
Vice-Chairman will take the chair.
The Board of Directors decides with a majority of the members either physically present and/or
represented by proxy except in case of Article 5 Paragraph 2 of the Company’s Articles of Association.
The discussions and the resolutions of the Board are recorded in minutes. The minutes of each session
must be distributed and approved at the subsequent Board meeting. Copies and extracts of the Minutes
are ratified by the President of the Board of Directors or the Managing Director or by any other councilor.
BOARD OF DIRECTORS MEETINGS DURING 1.1.21-31.12.21
NAME
CAPACITY
DURATION
NUMBER OF
MEETINGS
SOCRATIS KOKKALIS
CHAIRMAN OF THE BOARD OF DIRECTORS
& CHIEF EXECUTIVE OFFICER - EXECUTIVE
MEMBER
29.06.21 - 28.06.27
38
CONSTANTINOS ANTONOPOULOS
VICE PRESIDENT OF THE BOARD OF
DIRECTORS - NON-EXECUTIVE MEMBER
29.06.21 - 28.06.27
38
NIKOLAOS NIKOLAKOPOULOS
DEPUTY CHIEF EXECUTIVE OFFICER -
EXECUTIVE MEMBER
29.06.21 - 28.06.27
38
CHRYSOSTOMOS SFATOS
DEPUTY CHIEF EXECUTIVE OFFICER -
EXECUTIVE MEMBER
29.06.21 - 28.06.27
38
FOTIOS KONSTANTELLOS
DEPUTY CHIEF EXECUTIVE OFFICER -
EXECUTIVE MEMBER
29.06.21 - 28.06.27
37
ALEXANDROS STERGIOS MANOS
MEMBER OF THE BOARD – NON EXECUTIVE
MEMBER
29.06.21 - 28.06.27
38
IOANNIS TSOUMAS
MEMBER OF THE BOARD – INDEPENDENT
NON EXECUTIVE MEMBER
29.06.21 - 28.06.27
38
ADAMANTINI LAZARI
MEMBER OF THE BOARD – INDEPENDENT
NON EXECUTIVE MEMBER
29.06.21 - 28.06.27
13
DIONISIA XIROKOSTA
MEMBER OF THE BOARD – INDEPENDENT
NON EXECUTIVE MEMBER
29.06.21 - 28.06.27
13
IOANNIS TSOUKARIDIS
MEMBER OF THE BOARD – INDEPENDENT
NON EXECUTIVE MEMBER
10.04.14 - 28.06.21
25
ANASTASIOS TSOUFIS
MEMBER OF THE BOARD – INDEPENDENT
NON EXECUTIVE MEMBER
12.07.04 - 28.06.21
25
During 2021 the Non-Executive and Independent non - executive Members ( C. ANTONOPOYLOS, A-S
MANOS, I. TSOYMAS, A. LAZARI & D.XIROKOSTA) met one time without the presence of the Executive
-Members and discuss the performance of the latter.
Operation and Responsibilities of the Board of Directors
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The Board of Directors is the supreme executive body of the Company which, by exercising its powers,
protects the Company’s corporate interests and ensures the Company’s compliance with the provisions
of the applicable legislation and its Articles of Association.
The members of the Board of Directors and every third person to whom powers have been delegated
by it, in accordance with Article 87 of L.4548/2018, shall, in the exercise of their duties and
responsibilities, comply with the law, the Articles of Association and the lawful decisions of the General
Meeting. They must manage the corporate affairs in order to promote the corporate interest, supervise
the execution of the decisions of the Board of Directors and the General Meeting and inform the other
members of the Board of Directors of the corporate affairs.
Therefore, the Board of Directors of the Company is responsible for:
• The management, representation, as well as administration of the Company’s assets,
• Taking decisions, without any limitation, on all matters, in general, concerning the Company
within the scope of the corporate purpose, with the exception of those which, according to the
law or the Company’s Articles of Association, fall within the exclusive authority of the General
Meeting,
• Taking decisions on any matter relating to the promotion of the interests of the Company,
• The appointment and supervision of the implementation of the corporate governance system of
provisions 1 to 24 of Law 4706/2020, and the periodic monitoring and evaluation, at least every
three (3) financial years, of its implementation and effectiveness, taking appropriate actions to
address any deficiencies,
• The assignment of the Internal Audit of the Company to one or more persons, that are not
members of the Board of Directors,
• Ensuring the adequate and effective operation of the internal control system (which includes the
functions of Internal Audit, Regulatory Compliance and Risk Management),
• The management of corporate affairs in order to promote the corporate interest and the
supervision of the execution of the decisions of the Board and the General Meeting, while
informing at the same time the other Board members about the corporate affairs,
• Determining the values and the strategic orientation of the Company, as well as the continuous
monitoring of their compliance, ensuring that they are in line with the corporate culture,
• Ensuring that the corporate values and purpose influence all policies, practices, and behaviors
within the Company, setting the appropriate standards of behavior by example,
• The design and monitoring of the implementation of the corporate strategy, as well as the
approval and monitoring of the corporate business plan,
• Determining the extent of the exposure of the Company to the risks that it intends to assume
towards the achievement of its corporate purpose, and particularly, its long-term strategic
objectives,
• Determining and/or defining the responsibilities of the Chief Executive Officer and the Deputy
Chief Executive Officer(s),
• Establishing a policy to identify, avoid and deal with conflicts of interest between the interests
of the Company and those of the members of the Board of Directors or persons to whom the
Board of Directors has delegated some of its responsibilities,
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• Determining the appropriate structures, reporting lines and responsibilities towards the
achievement of the Company’s objectives,
• Ensuring the smooth succession of its members and the senior executives of the Company,
• The efficient operation and regular evaluation of the Board of Directors, its Committees, and
members, as well as their continuous improvement,
• Ensuring that the composition and operation of the Board of Directors and its Committees are
in agreement with the applicable legislation, as well as ensuring the compliance with any
obligation as required by the applicable legislation, the corporate documents, policies, and
procedures governing it; and
• All other responsibilities as provided for in the Company’s Articles of Association, its Internal
Regulation, and the applicable legislation.
The Board of Directors may, in general, delegate the powers of management and representation of the
Company (except those requiring collective action) to one or more persons, members of the Board or
not, while determining at the same time the extent of such delegation. In any case, the powers of the
Board of Directors are subject to the provisions of articles 19 and 99-100 of Law No. 4548/2018, as in
force.
Chairman of the Board of Directors
The Chairman of the Board of Directors is the main connection between the Management, the Board of
Directors and the shareholders of the Company and has the following responsibilities:
• Presides over the meetings of the Board of Directors and ensures that its work is in line with
its obligations towards shareholders, the Company, the supervisory authorities, the law, and
the Articles of Association of the Company.
• Determines the items on the agenda and ensures the effective organization of the meetings,
encouraging open debate and the effective contribution of the members of the Board.
Furthermore, at the request of a Board member, the Chairman shall be expected to provide an
accurate summary of his/her opinion in the minutes.
• Ensures that the Board members are accurately and timely informed and have the support of
the Management executives.
• Facilitates the effective participation of executive and non-executive Board members in the
work of the Board, and ensures the establishment of constructive relationships between the
executive and non-executive Board members.
• Ensures that the Board of Directors as a whole has a satisfactory understanding of the views
of the shareholders. Ensures the effective communication with all shareholders with a view to
the fair and equitable treatment of their interests.
• Promotes dialog with the rest of the stakeholders.
• Ensures the evaluation of the Board of Directors and its Committees.
Further, in addition to the above responsibilities related to the operation of the Board of Directors, and
to the extent that the Chairman retains his/her executive capacity, he/she shall exercise the executive
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125
powers delegated to him/her by the relevant authorizations of the Board of Directors, with a view to
participating in all decisions that materially affect the course of the Company.
Vice-Chairman of the Board of Directors
The Vice-Chairman of the Board of Directors, who is specifically appointed by the decision constituting
the Board of Directors into a body, is the person who replaces the Chairman in his/her duties, in cases
where the Chairman is unable to exercise them and, in general, where this is provided for by the
Company’s Articles of Association and the law.
Chief Executive Officer
The Chief Executive Officer is the executive member of the Board of Directors who is assigned by decision
of the Board with the management and representation of the Company, acting within the limits of the
powers and responsibilities provided for by the applicable legislation, the Articles of Association, the
specific decisions of the Board of Directors, the Regulations and the Policies governing the operation
and organization of the Company.
In particular, the CEO has the following responsibilities:
To perform any act of administration, management, and representation of the Company within the scope
of the powers and responsibilities delegated to him/her by the Board of Directors,
To decide on all matters, in general, relating to the Company within the scope of the corporate purpose,
To execute the decisions of the Board of Directors at all times,
To implement the Company’s corporate strategy as this is determined by the Board of Directors,
To delegate in general or for certain actions only, the exercise of the powers and responsibilities
entrusted to him/her to third persons, employees or not of the Company, members or not of the Board
of Directors, within the scope of the powers delegated to him/her, while determining at the same time
the extent of such delegation,
To ensure that the members of the BoD are provided promptly with all the necessary information for
the performance of their duties,
• To work with the Company Secretary for matters relating to the organization of the Board of
Directors and to keeping the BoD Members fully informed,
• To regularly consult with the non-executive members of the BoD on the appropriateness of the
corporate strategy during its implementation,
• To inform the BoD in writing without undue delay, either severally or jointly with the other
executive members of the BoD, by submitting a report with the relevant assessments and
recommendations, when a crisis or risk situation arises or when circumstances require measures
to be taken which are reasonably expected to have a significant impact on the Company, such
as when decisions are to be taken regarding the development of the Company’s activities and
the risks to be assumed, which are expected to affect its financial position.
Deputy Chief Executive Officer(s)
The Board of Directors may elect one or more Deputy Chief Executive Officers from its executive
members and at the same time determine their powers and responsibilities, who act jointly or separately
to replace the Chief Executive Officer in the entire scope of his responsibilities, unless the Board of
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Directors assigns them specific responsibilities only by defining at the same time their responsibilities
or limited powers.
In addition, in order to provide sufficient information when making decisions regarding transactions
between related parties, the Board of Directors has approved and applies a procedure of transactions.
The procedure of transactions with related parties provides in particular:
▪ The legislative and regulatory framework with which the Company must comply;
▪ The responsibilities of the Company as well as the roles and obligations of the departments and
directorates of the Company and involved in the management of transactions with related parties;
▪ Defining and identifying related parties;
▪ The procedure of managing and approving the conclusion of transactions with related parties;
▪ The legal notification procedures for concluding transactions with related parties.
In addition to the procedure concerning the transactions with related parties, the Company has adopted
a conflict of interest policy, which includes further procedures, in order to avoid conflict of interest of
members of the BoD as contracting parties in the relevant transaction.
Finally, the Company has established a policy of suitability of the members of the Board of Directors
(hereinafter referred to as the "Suitability Policy") which aims at ensuring quality staffing, efficient
operation and fulfillment of the role of the Board of Directors, based on the overall strategy and medium-
term business pursuits of the Company with a view to promoting the corporate interest. It includes the
principles concerning the selection or replacement of the members of the Board of Directors and the
renewal of the term of office of the existing members, the criteria for the assessment of the collective
and individual suitability of the members of the Board of Directors, the provision of diversity criteria.
The Suitability Policy is uploaded on the Company’s website http://www.intralot.com
Responsibilities & Conduct of the members of the Board of Directors
The members of the Board of Directors must in particular:
• Comply with the law, the Articles of Association, and the lawful decisions of the General
Meeting of Shareholders of the Company.
• Manage the corporate affairs with the sole purpose of promoting the corporate interest.
• Not pursue own interests that conflict with the interests of the Company.
• Disclose in a timely and adequate manner to the other members of the Board, own interests
that may arise in connection with transactions of the Company or its affiliated companies.
• Abstain from voting on matters where there is a conflict of interest between their own
interests and those of the Company.
• Disclose to the Board of Directors other professional commitments as soon as they arise.
• Not compete against the Company either by themselves or through any third party by
attempting acts that fall within the scope of the Company, unless they are authorized to do
so by the General Meeting or unless this is provided for in the Articles of Association of the
Company.
• Collectively ensure that the annual financial statements, as well as the rest of the Company
reports (management, corporate governance, remuneration reports) are prepared and
published in accordance with the law.
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• Maintain records, books, and information as required by law.
• Maintain strict confidentiality with respect to corporate affairs and secrets and refrain from
acts of abuse and unlawful disclosure of privileged information in accordance with the law.
• Not execute transactions involving the Company’s shares, debt instruments, derivative
instruments, or other related financial instruments in violation of the law.
• Disclose to the Company all transactions carried out on their behalf concerning shares, or
debt instruments, or derivative instruments, or other related financial instruments of the
Company, in case the total amount of these transactions exceeds the amount set as a limit
by the applicable provisions.
• Disclose any transaction with a key customer, domestic provider or supplier of the Company
that does not fall within the current and ordinary transactions of the Company with these
partners.
• Have sufficient time to perform their duties.
• Furthermore, specifically the executive members of the Board of Directors:
• Are responsible for the implementation of the strategy decided by the Board of Directors.
• Regularly consult with the non-executive members of the Board of Directors on the
appropriateness of the corporate strategy in force.
• In case of a crisis or risk and when important decisions are to be taken, such as decisions
affecting the Company’s financial situation, they shall inform the Board of Directors without
delay by submitting a report including their assessments and proposals.
• The non-executive members of the Board of Directors must in particular:
• Monitor and review the corporate strategy, its implementation, as well as the achievement
of the Company’s objectives.
• Effectively supervise the executive members, including monitor and review their
performance.
• Review the proposals of the executive members and express their views on them on the
basis of the available information.
• In addition to the above, the independent non-executive members must:
• Attend meetings concerning the preparation of the financial statements of the Company or
any other matter approved by the General Meeting with an increased quorum and majority.
• Submit, either jointly or separately, reports to the General Meeting in addition to those
submitted by the Board of Directors.
REMUNERATION POLICY
The Remuneration Policy for the members of the Board of Directors shall enter into force after being
approved by the Ordinary General Meeting of Shareholders of INTARLOT dated on 29.05.2020, as per
the provisions of L. 4548/2018 articles 110 par. 2) and the duration of which cannot exceed the duration
of four (4) years as from the date of its approval by the General Meeting and it can be renewed and/or
amended sooner with the respective decision of a next General Meeting.
It must be noted that the present Remuneration Policy is valid for all BoD members as per the specific
provisions of articles 110 and 111 of L. 4548/2018. The Remuneration Policy for BoD members is taking
into consideration the existing legal framework as well as the code of Corporate Governance and the
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Operation’s Regulation of the Company, in order to align the remuneration of the Board of Directors
with the interests of all Company’s stakeholders.
The Remuneration Policy contributes to the business strategy, the long-term interests and the
sustainability of the Company. This is achieved by giving the Company the flexibility to hire, for different
roles, people with the appropriate level and skills ensuring that their remuneration is closely connected
to the long-term goals of INTRALOT and, primarily, that such remuneration is aligned with the
Company’s shareholders interests, taking in account a wider group of stakeholders, such as the
employees.
The Remuneration Policy responds to the legal requirements and ensures he compliance with the
European and Greek legal framework. Purpose of this Remuneration Policy is to conform to the market
practices, serving the Company’s long-term and short-term business plan, its strategic vision and its
sustainability.
REMUNERATION COMPONENTS
REMUNERATION OF THE EXECUTIVE MEMBERS OF THE BOARD OF DIRECTORS
The remuneration of the Executive Members of the Board of Directors includes the annual fixed
remuneration, as well as benefits in kind, in accordance with the individual employment contracts as well
as remuneration for the time spent on their participation to the meetings of the Board of Directors for
the fulfillment of their duties.
Fixed Remuneration
The fixed remuneration reflects the level of the responsibility, experience and expertise of the Executive
Members of the Board of Directors. The remuneration must be competitive with respect to similar entities
in the industry, and appropriate, taking into consideration the performance and prospects of the
Company.
The annual fixed remuneration is determined in accordance with the terms of the respective individual
employment contract and is subject to all legal deductions and charges in accordance with the Greek
law.
INTRALOT provides to the Executive Members of the BoD also remuneration based on performance as
well as participation in pension schemes, as per the general remuneration policy for all the Company
employees which cannot exceed for all the above the 100% of the amount of their annual fixed
remuneration. Additionally, it also provides to the Executive Members of the Board of Directors the
legally required social security contributions.
Other Benefits in kind
The Company provides private-use vehicles and/or fuel subsidies to the Executive Members of the BoD.
However, it should be noted that such benefits in kind constitute additional voluntary benefits provided
by the Company, which are paid on a discretionary basis and are not counted in or added on to the fixed
salary. These benefits in kind may be modified or revoked in whole or in part by the Company at its sole
discretion.
Remuneration
The remuneration of the executive members of the BoD is proportional to the time they participate in
Board meetings, as well as to the fulfillment of the duties assigned to them , and this remuneration is
set for each executive member of the BOD at a maximum per year amount which cannot exceed the
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30% of the annual fixed remuneration. The final amount will be defined by the Bod at the end of each
year.
REMUNERATION OF THE NON-EXECUTIVE BOD MEMBERS
The Non-Executive Members of the BoD are elected by the General Meeting in accordance with the
provisions of the Law and the Articles of Association of the Company. They receive an annual basic
salary, which reflects their time of employment and duties and is independent of the performance of the
Company. For this very reason, the Non-Executive Members of the BoD are not entitled to a variable
remuneration related to the performance of the Company or any long-term incentives related to the
Company’s share.
Remuneration
The remuneration of the Non-Executive and Independent members of the BoD is proportional to the
time they participate in Board meetings, as well as to the fulfillment of the duties assigned to them in
accordance with Law 3016/2002, and is determined to a maximum € 35,000 for independent-non
Executive members of the BoD and € 50,000 for Non-Executive members per year and per person. The
calculation of the annual remuneration of the Non-Executive members of the BoD members is a function
of the amount of remuneration per meeting, as well as the maximum number of meetings per month,
for which the members are entitled to receive remuneration and the final amount shall be determined
by the BoD in the end of each year. The Non-Executive Members of the BoD participate in the
predetermined BoD meetings and the Committees thereof, in compliance with the Internal Rules &
Regulations of the Company. The remuneration of the Non-Executive and Independent Non-Executive
Members of the BoD is subject to all legal deductions and charges as provided by Greek law.
Business Expenses / Costs
The Non-Executive BoD members may be reimbursed by the Company for business expenses of a
reasonable amount incurred by them in the performance of their duties. These expenses include but are
not limited to: Travel and accommodation expenses for the purpose of attending the meetings of the
BoD. The travel and accommodation expenses of the Non-Executive Members of the BoD are subject to
the approval of the Chairman of the BoD.
Company Contracts with the Executive BoD Members
The duration of the contracts of the Executive Members of the BoD -in their capacity as Executive
Members- shall be determined each time following recommendation of the Committee prior to their
conclusion. The existing contracts of the Executive members of the BoD are of an indefinite duration.
Conditions of Termination of Contract - Deadline for the Notice of the Contract Termination &
Indemnity
In the event of termination of an Executive member contract on the initiative of the Company, the
deadline for the notice of the contract termination and the payment of indemnity shall be as set forth in
the relevant Labor Law. The BoD, following respective recommendation of the Committee, may also
negotiate additional incentives in cases of early termination.
Indemnity for Termination of Contract
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130
The Executive members of the BoD -in their capacity as Executive Members- are not entitled to lump
sum payments or other indemnities from the Company for the loss of their position or other reason,
howsoever arising, apart from the compensation provided by Law.
For the total remuneration and compensation, pursuant to the provisions of the law annually, the
remuneration report as provided for by L. 4548/2018 is prepared, approved by the Board of Directors
and submitted to the Ordinary General Meeting for voting, and which, in view of its approval by the
Ordinary General Meeting is checked for completeness by the external auditors of the Company. The
information on the remuneration report shall also be examined by the Remuneration & Nomination
Committee, before submitting the report to the General Meeting.
During the Ordinary General Meeting of shareholders that will take place within 2022 concerning the
approval of the financial results 2021, the Remuneration Report related to the paid remunerations to
the Board of Directors Members during 2021, will be submitted according to article 112 of Law
4548/2018 as well as the Company’s Remuneration Policy of the Board of Directors.
The Remuneration Policy is available on the Company’s website https://www.intralot.com
Other Managerial and Supervisory Bodies
The Board of Directors may decide to establish committees governing human resources, scheduling,
control or other responsibilities as it deems necessary to facilitate the purpose of the Company. The
detailed terms of mandate, composition, term, the directorship and reporting frequency to the Board of
Directors is determined at the time of establishment. The committees have consulting competence and
submit their recommendations to the Board of Directors for due examination and action. Exceptionally,
the Board of Directors may, at its discretion, delegate to these committee’s executive and/or decision
making authorities in cases allowed by law and the Company’s Articles of Association.
Α. Audit Committee
Τhe Audit Committee was elected by the Ordinary General Meeting dated on 29.06.2021 The current
line – up of the Audit a Committee is as follows:
Chairman:
Ioannis K. Tsoumas, Independent - non-executive member
Members:
Adamantini K. Lazari, independent - non-executive member and
Dionysia D. Xirokosta, independent - non-executive member
The Audit Committee is a committee of the Board of Directors, established with the aim of assisting
them with respect to the fulfilment of their supervisory responsibilities as regards the financial
reporting and information, of ensuring the compliance of the Company and its subsidiaries with the
legislative and regulatory framework of operation as well as of ensuring the audit system procedure
and the exercise of supervision over the operation of the auditing operation.
The Audit Committee is comprised of at three (3) non-executive members of the Board of Directors, of
which the one independent non-executive member who presides the meetings and has
experience/knowledge on financial and accounting matters and meets the other conditions set by the
applicable legislation
Responsibilities
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131
The main responsibilities of the Audit and Compliance Committee are:
• The monitoring and evaluation of the adequacy of the internal audit and risk management
system of the Company. The Committee is informed of the annual audit program of the Internal
Audit Unit prior to its implementation and holds regular meetings with the Head of the Internal
Audit Unit, so as to discuss issues of his/her competence, as well as problems that may arise
as a result of the internal audit procedure.
• The monitoring of the findings of the Supervisory and Tax Authorities including the responses
of the Management of the Company.
• The biannual examination of the adequacy of the Internal Regulation of the Company.
• The monitoring of the financial reporting processes.
• The monitoring of the procedure of statutory audit of the biannual and annual individual and
consolidated financial statements of the Company, which are prepared according to the
International Financial Reporting Standards (IFRS) and whose approval is at the discretion of
the Board of Directors of the Company. The Committee takes into account the supplementary
report submitted by the Certified Accountant/Auditor that contains the results of the statutory
audit carried out and meets at least the specific requirements in accordance with Article 11 of
Regulation (EU) No 537/2014 of the European Parliament and Council of the 16th of April of
2014. In addition, the Committee reviews the financial reports prior to their approval by the
Board of Directors, and evaluates their completeness and consistency in relation to the
information provided to it and the accounting principles applied by the Company.
• The Committee examines the most significant financial-accounting reporting matters and the
notes to the financial statements, focusing on the areas and the methods utilized to evaluate
assets and liabilities that are open to subjective interpretation.
• The examination of any taxation or legal matters that may have a significant impact on the
financial statements.
• In collaboration with the Management of the Company and the internal and external Auditors,
the Committee examines the adequacy of the information systems of the Company including
the significant risks and the established controls to minimize them.
• The Committee recommends the statutory external auditor or firm of auditors (the Auditor) to
the Board of Directors, so that the latter can submit their proposal for the appointment of a
statutory external auditor or firm of auditors to the General Meeting.
• The Committee ensures the independence and objectivity of the Auditor specifically through
the examination of the compliance of the firm as to the rotation of the auditors, the amount of
the remuneration paid by the Company and the provision of other services (e.g. consulting
services) by the statutory auditor or the firm of auditors.
• The Committee is informed by the Auditor or the firm of auditors at least once a year, on all
matters relating to the progress and the results of the statutory audit. In this framework, the
Committee receives a report on the weaknesses of the internal audit system, especially the
weaknesses of procedures relating to financial reporting and the preparation of financial
statements.
• The Committee ensures that the internal and external auditor can communicate freely with the
Board of Directors by acting as their main liaison.
• The Committee meets with the Auditor (either with or without the presence of the Management
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132
of the Company) to discuss the aforementioned matters, potential disputes which may arise
between the Auditor and Management of the Company, as well as any other significant changes
that may occur in the audit plan.
• The Committee proposes to the Board of Directors the appointment, replacement, and
termination of the Internal Auditor and is responsible for the periodic evaluation of his/her
performance.
• The Committee receives and examines the periodic internal audit reports and supervises the
progress of the implementation of the propositions of the Internal Auditor that are adopted by
the Management, as these are expressed in the corresponding reports.
• The Committee ensures transparency by examining issues of transparency pertaining to the
procedures of awarding and execution of public tenders in accordance with the applicable
legislation in force.
• The Committee monitors the transactions of the subsidiaries of the Company and its affiliated
companies in Greece and abroad as to the interests and the activities of the group.
• The Committee proposes the appointment of a person responsible for the policy relating to the
disclosure of wrongdoing, determines his/her responsibilities, as well as any remuneration
(whistleblowing policy).
During the year 2021, the Audit a Committee held 17 meetings and dealt with all matters within
its competence, as defined by the provisions in force. The relevant information material (internal
audit reports, auditors' reports and presentations, financial and non-financial information, etc.)
was distributed in time manner to the members of the Audit Committee for study and relevant
minutes were kept in which the issues discussed and approved by the Commission and notified to
the Management Board.
MEMBERS AND MEETINGS OF THE AUDIT COMMITTEE DATED 1.1.21-31.12.21
NAME
CAPACITY
DURATION
NUMBER OF
MEETINGS
IOANNIS TSOUMAS*
MEMBER OF THE BOARD –
INDEPENDENT NON-
EXECUTIVE MEMBER -
CHAIRMAN
29.06.21-28.06.27
17
ADAMANTINI LAZARI
MEMBER OF THE BOARD –
INDEPENDENT NON-
EXECUTIVE MEMBER
29.06.21- 28.06.27
6
DIONISIA XIROKOSTA
MEMBER OF THE BOARD –
INDEPENDENT NON-
EXECUTIVE MEMBER
29.06.21-28.06.27
6
ANASTASIOS TSOUFIS
MEMBER OF THE BOARD –
INDEPENDENT NON-
EXECUTIVE MEMBER
09.10.06 -28.06.21
11
IOANNIS TSOUKARIDIS
MEMBER OF THE BOARD –
INDEPENDENT NON-
EXECUTIVE MEMBER
10.04.14- 28.06.21
11
*In the previous composition of the Audit Committee until 28.06.21 participated Mr. Anastasios Tsoufis
and Mr. Ioannis Tsoukaridis and chairman of the Committee was the re-elected member of the Board of
Directors, Mr. Ioannis Tsoumas.
The Regulation for the operation of the Audit Committee is available on the Company’s website
www.intralot.com.
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133
ANNUAL REPORT ON AUDIT COMMITTEE 1.1.21-31.12.21
1.Introduction
The Audit Committee of INTRALOT is a Committee of the Board of Directors of the Company, operating
on the basis of the current institutional framework and the corporate governance principles concerning
companies whose securities have been admitted to trading in a regulated market. It operates within the
framework of the Internal Regulation that has been approved by the Board of Directors of the Company,
as in force from time to time.
2.Purpose - Responsibilities
The primary purpose of the Audit Committee (AC) is to support the Board of Directors in its duties
relating to the monitoring of the quality and integrity of financial reporting and financial statements, the
evaluation of the effectiveness of the internal control and the risk management system, as well as the
monitoring of the statutory audit of the annual and consolidated financial statements of the Company.
The responsibilities and operation of the Audit Committee with respect to fulfilling its purpose are further
detailed in the Internal Regulation of the Company that is available at the following hyperlink:
https://www.intralot.com/
In general, the Audit Committee had full and unimpeded access to all information that is considered
necessary and appropriate for the performance of its duties. The Audit Committee has been provided
by the Company’s Management with all the necessary infrastructure and human resources for the
performance of its duties.
3.Composition
In accordance with its Regulation of Operation, the Audit Committee is composed of three (3)
independent non-executive members of the Board of Directors, who are not involved in the operation
of the Company in any way, with a view to make objective and independent judgments that are free
from conflicts of interest. At least one member of the Audit Committee must meet the criteria of
paragraph 1 of article 44 of Law 4449/2017.
The current Audit Committee, which was elected on 29/6/2021, is composed of three (3) independent
non-executive Members of the Board of Directors. The term of office of the members of the Audit
Committee is equal to that of the Board of Directors.
All Members of the Audit Committee have sufficient knowledge of the field in which the Company
operates and at least one member has sufficient knowledge of accounting and auditing.
The Audit Committee is composed of the following Members:
Ioannis Tsoumas, Chairman of the Audit Committee, Independent Non-Executive Member of the Board
of Directors.
Adamantini Lazari, Independent Non-Executive Member of the Board of Directors.
Dionysia Xerocosta, Independent Non-Executive Member of the Board of Directors.
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4.Meetings
The Audit Committee convenes as necessary, but at least four times per annum at the invitation of its
Chairman and meets with the regular auditor of the Company without the presence of the members of
the Company’s Management at least twice a year. For the execution of its work, the Audit Committee
convenes within the first quarter of each year, in order to draw the annual plan and determine the
frequency and duration of the meetings that will take place throughout the year, so as to cover the
areas and systems that fall within its remit.
During the Financial Year (FY) 2021 (01/01/2021 - 31/12/2021), the Audit Committee has held a total
of seventeen (17) meetings with the participation of all its members and all its decisions were taken
unanimously. During each meeting all the required information material has been distributed and, in
cases where this was deemed necessary, in addition to its members, other Management executives
(without voting rights), and the certified auditors have participated.
5.Activities of the Audit Committee for FY2021
Due to the election of a new Audit Committee on 29/06/2021, the Annual Report on the Activities of the
Audit Committee for the FY 2021 is divided into two periods: 01/01/2021 - 28/06/2021 and 29/06/2021
- 31/12/2021.
During the above-mentioned meetings, the Audit Committee has dealt with issues within its
competence, namely:
1/1/2021 - 28/06/2021 (11 MEETINGS)
Α. Internal Control System Structure and Procedures
• The Audit Committee has monitored and evaluated the adequacy and effectiveness of the internal
control and risk management system with regard to financial reporting.
• It has examined and evaluated the findings and recommendations of both the internal auditors and
the Certified Auditors, as well as the actions taken in this regard.
• It has informed the Board of Directors on the above.
Β. Financial Statements - Statutory Audit
• The Audit Committee has held meetings with the Management and was informed of the financial
reporting process, as well as of any issues that could have had an impact on the financial statements.
• It has informed the Board of Directors of the result of the statutory audit, and has proposed to the
Board of Directors the approval of the annual Financial Statements on an individual and a
consolidated basis, prior to their publication, based on the accounting principles followed.
• It was informed of the Supplementary Audit Report of the Company’s Certified Auditors.
• It has reviewed the Annual Financial Report for FY 2020.
• It has reviewed the audit program and approach of the statutory audit of the Company’s Certified
Auditors, SOL CROWE and GRANT THORNTON for the FY 2020.
• The main topics of the audit was “Key Audit matters”:
A) Evaluation of impairment for goodwill and intangible assets (consolidated and corporate financial
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135
statements) B) Evaluation of impairment in investments in subsidiaries (corporate financial
statements).
• It has held meetings with the Company’s Certified Auditors at the stage of planning and conducting
the audit and at the stage of preparation of the audit reports.
• It has held meetings with the Certified Auditors, without the presence of the Company’s
Management, during which the Audit Committee was informed about the cooperation of the Certified
Auditors with the Management regarding the financial audit matters.
- In accordance with its approved procedure, the Audit Committee has reviewed all services provided
by the Certified Auditors and has confirmed that no services other than those required as part of the
accounting, tax and other audits have been provided.
- Based on the information provided by the services of the Company and the Group, no issues
regarding the independence of the Certified Auditors have arisen.
- It has monitored the services provided by the Certified Auditors as part of the statutory audit.
- It has submitted a recommendation for the reappointment by the General Meeting of the same
Certified Auditors, i.e. the audit firms SOL CROWE and GRANT THORNTON, and the approval of their
remuneration and employment terms.
It is noted that their remuneration was maintained at the same level as that of the previous financial
year. This recommendation was made without any third party influence and without there being any
contractual clause between the Company and any third party that would limit, for the General Meeting
of the Shareholders, the selection of a certified auditor or an audit firm to certain categories or lists
of certified auditors or audit firms, for the purpose of carrying out the statutory audit of the Company.
- It was informed by the Finance Division on the financial statements of Q1 2021 and has
recommended their approval to the Board of Directors.
C. Internal Audit
• It has monitored the effectiveness of the Internal Audit and the execution of the audit program by
the Internal Audit Unit without compromising its independence.
• It was updated and has approved the annual audit plan of the Internal Audit Unit for FY 2021, in
order to ensure its efficiency, taking into account the main areas of business and financial risk, as
well as the results of previous audits.
• It has reviewed and evaluated the Internal Audit reports for Q1 2021, as well as the relevant
comments of the Management and has informed the Board of Directors accordingly.
• It has monitored the development and progress of the findings of the Internal Audit during this
period.
• It was informed and has approved the annual report and the activities of the Internal Audit Unit for
the FY 2020 (01/01/2020 - 31/12/2020).
• It has approved the Regulation for the Operation of the Internal Audit Unit.
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D. Other matters
• It has approved the notification of the General Meeting of Shareholders regarding its activities
for the FY 2020 (01/01/2020 - 31/12/2020).
• It was informed about the conclusion of the Contracts for the implementation of the Proposed
Restructuring and has recommended that the conclusion of the Contracts will preserve the value
of the Company for the benefit of all stakeholders, allowing at the same time the Group to
restructure its 2021 Notes and, therefore, be able to repay or fully refinance the outstanding
2024 Notes at maturity (through Equity Swap).
• It was informed by the Group Chief Financial Officer on the actions concerning the Company’s
liquidity to ensure the smooth continuation of its operations.
• It was informed of the assignment, for the Group’s subsidiary Intralot Australia, of the local
Certified Auditors firm, GRANT THORNTON, a member of the same network as the audit firm that
is based in Greece, which is carrying out the audit for the INTRALOT Group. The Audit Committee,
on the basis of the information provided to it, has considered these services as an extension of
the statutory audit services already assigned to the firm that is based in Melbourne and not as
separate, either advisory or audit & assurance services. Therefore, the Audit Committee has
considered that this assignment does not put at risk the independence of this firm, its network
and office in Greece, and that the subsidiary can proceed with the relevant assignment.
29/6/2021 - 31/12/2021 (6 MEETINGS)
A. Organizational Structure - Operational Framework
- The Audit Committee was formed into a body and has elected a Secretary.
- It was informed in detail by the Head of the Internal Audit of the Regulation of Operation of the Internal
Audit Unit, the Regulation of Operation of the Audit Committee, the Internal Regulation of the Company,
the Internal Control System, and the Code of Corporate Governance.
Β. Financial Statements - Statutory Audit
• It was informed by the Certified Auditors of the interim Financial Statements for the first half of
2021, which has then reviewed and recommended their approval to the Board of Directors.
• It was informed by the Finance Division of the financial statements of Q3 2021 and has
recommended their approval to the Board of Directors.
C. Internal Audit
• It has reviewed and evaluated the Internal Audit reports for Q2, Q3, Q4 2021, and the comments
of the Management in this regard.
• It has monitored the development and progress of the Internal Audit findings, informed the
Board of Directors of the Company of these findings, and submitted proposals for the
implementation of corrective measures, where deemed appropriate.
• It has approved necessary changes to the Annual Audit Plan for 2021.
• It was informed of the Annual Audit Plan for 2022, which it has approved.
Sustainable Development Policy
The Sustainable Development Policy is determined by the Company’s Management, which is committed to:
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
137
• The continuous development of the Company and the creation of economic value for its
shareholders and stakeholders,
• Ensuring business ethics,
• Providing products and services, with due regard for environmental and/or social impact,
• Fostering innovation,
• Systematically monitoring its environmental footprint.
The relevant policy also includes a description of the actions linked to the thematic pillars of sustainable
development, in particular actions relating to corporate governance, innovation and research, the
industry and the customers, human resources, the environment and society in general.
THE CHAIRMAN OF THE COMMITTEE
IOANNIS TSOUMAS
Β. Remuneration and Nomination Committee
Τhe Remuneration and Nomination Committee was elected by the BoD dated on 30.06.21 and the line-
up of the Remuneration and Nomination Committee is as follows:
Chairman:
Adamantini K. Lazari, Independent - non-Executive member,
Members:
Ioannis K. Tsoumas, Independent - non-executive member,
Dionysia D. Xirokosta, Independent - non-executive member,
The Remuneration and Nomination Committee for the election of members of the Board of Directors is
a committee of the Board of Directors and is formed for the purpose of: (a) assisting the Board of
Directors in the performance of their duties relating to the remuneration provided by the Company, by
designing remuneration policies that are aimed at the long-term success of the Company and the group
and at maximizing the value of the shareholders, taking into account that the senior and upper
management executives of the Company and the companies of the group shall be adequately
remunerated, in a way that is in compliance with the strategic objectives of the Company, the practices
of the competition and any regulatory requirements, and (b) finding suitable persons to be elected as
members of the Board of Directors and proposing candidates to the Board of Directors that the latter
will nominate for election either by the General Meeting of the Company's shareholders or by the Board
of Directors itself, in cases where this is provided by law.
Members and Tenure:
The Committee is comprised of three (3) members, the majority of whom are independent non-
executive members. The Chairman of the Committee is appointed by the Board of Directors of the
Company and must be an independent- non-executive member. The tenure of the members of the
nomination committee shall coincide with the term of office of the Board of Directors with the possibility
of its renewal. In any case their term of office in the Committee shall not exceed nine (9) years in
total.
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138
Responsibilities:
• The Committee proposes the remuneration policy of the Company including performance-based
bonuses (incentive bonuses), stock options, as well as employee loyalty incentive programs.
• Specifically, with respect to the remuneration of executives and managers, the Committee
proposes the amount of their fixed salary, the performance-related remuneration schemes, the
pension schemes, as well as the severance packages.
• The Committee proposes the criteria and the general framework for the selection of the
members of the Board of Directors and reviews periodically and consistently the needs for
renewal of the Board of Directors in accordance with the Suitability Policy.
• It proposes procedures for determining the internal relations of the members of the Board of
Directors.
• It determines the criteria for the selection of the new directors, as well as the transfers.
• Formulates proposals to the Board of Directors regarding the remuneration policy submitted
for approval to the general meeting, in accordance with paragraph 2 of article 110 of Law
4548/2018.
• Formulates proposals to the Board of Directors regarding the remuneration of persons falling
within the scope of the remuneration policy in accordance with article 110 of Law 4548/2018,
and regarding the remuneration of the Company's executives, especially the head of the
internal unit audit where the relevant recommendation is made in consultation with the Audit
Committee
• Examines the information included in the final draft of the annual salary report, providing the
opinion to the Board of Directors, before submitting the report to the general meeting, in
accordance with article 112 of Law 4548/2018.
During the meetings of 2021, the Committee has dealt with issues within its competence,
namely:
• Amendments to employment contracts of Board members.
• Report according to article 101 of Law 4548/2018 on the fair and reasonable remuneration of the
Deputy CEO of INTRALOT.
• Election of a new Board of Directors (Curriculum Vitae of candidate members for participation in the
Board of Directors of the Company / Submission of Proposal and Suggestion for the election of a new
Audit Committee
• Remuneration Report of article 112 of Law 4548/2018 and the Company's Suitability Policy.
REMUNERATION & NOMINATION COMMITTEE FOR THE ELECTION OF MEMBERS OF THE BOD
1.1.21-31.12.21 *
NAME
CAPACITY
DURATION
NUMBER OF
MEETINGS
ADAMANTINI LAZARI**
MEMBER OF THE BOARD – INDEPENDENT NON-
EXECUTIVE MEMBER – CHAIRMAN
30.06.21-
28.06.27
-
IOANNIS TSOUMAS***
MEMBER OF THE BOARD – INDEPENDENT NON-
EXECUTIVE MEMBER
30.06.20-
28.06.27
4
DIONISIA XIROKOSTA
MEMBER OF THE BOARD – INDEPENDENT NON-
EXECUTIVE MEMBER
30.06.21-
28.06.27
-
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139
ALEXANDROS – STERGIOS MANOS
MEMBER OF THE BOARD – NON-EXECUTIVE MEMBER
09.03.20-
28.06.21
4
IOANNIS TSOUKARIDIS
MEMBER OF THE BOARD – INDEPENDENT NON-
EXECUTIVE MEMBER
18.06.14-
28.06.21
4
* The 4 meetings of the Remuneration and Nomination Committee of Members of the Board. took
place from 1.1.21 - 28.6.21 under the previous composition of the Commission.
** Μs A. Lazari was elected as Chairman of the Remuneration & Nomination Committee of the BOD
on 30.6.21
** Mr. I. Tsoumas was elected for the first time as a member of the Remuneration and Nomination
Committee of Members of the Board on 15.10.20
The Regulation for the Remuneration and Nomination Committee for the election of members of the
Board of Directors is available on the Company’s website www.intralot.com
C. EXECUTIVE COMMITTEE
The Executive Committee is a body of the Company that assists the Board of Directors and the
management of the Company both in matters relating to strategic decisions and in matters relating to
the planning of the day-to-day management of corporate affairs. The role of the Executive Committee
is essential for the achievement of the inter-company communication, the coordination of the
departments’ projects and the support of the Chief Executive Officer at both an informative and advisory
level.
The Executive Committee is comprised of the Chief Executive Officer, any possible Deputy Chief
Executive Officer and the senior Management Executives that are direct reports to the Chief Executive
Officer or any possible Deputy Chief Executive Officer based on the Organizational Chart.
The tenure of the Committee is indefinite.
Responsibilities:
The Executive Committee acts in accordance with the instructions and directions of the Board of
Directors. The Committee is responsible for the implementation of the strategy drawn up by the Board
of Directors. The Committee assists the Board of Directors in the adoption of resolutions relating to the
strategy of the Company and the Group and proposes alternative strategic options to the Board of
Directors, as well as the participation of the Company and/or the companies of the Group in tenders for
the awarding of new projects by processing, analyzing and approving the submitted offers. The
Committee deals with, resolves, and/or introduces to the Board of Directors of the Company matters
relating to the planning of the day-to-day management of the corporate and intra-group affairs.
In order to fulfill its purpose, the Executive Committee is entrusted with the following responsibilities:
the approval of the annual budget and the corporate business plan, the supervision and consultation of
the Company with respect to the compliance with the corporate strategy, the monitoring of the
investments, acquisitions and divestitures, as well as the development activities of the Company, the
adoption of decisions relating to the signing of contracts of the parent company and/or the subsidiaries
controlled by the parent company -for contracts implying a financial commitment exceeding the amount
of one million euros (€ 1.000.000), as well as the participation of the Company and/or the companies
of its Group in tenders. The operation of the Executive Committee aims to:
• Support the operation of the Board of Directors
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140
• Focus on responsibility
• Improve the speed and efficiency of decision-making,
• Ensuring the objectivity and reliability of decisions.
The principles of ethics and the rules of internal governance of the Executive Committee are:
• Compliance with the requirements of the legislation, the Articles of Association, and the
Internal Regulation of the Company, as well as with the decisions of its bodies
• Loyalty to the Company and prevention of damage to its interests
• Guarantee of the confidentiality of information
• Non-exploitation of confidential information
• Prohibition of the external activities that could impede an independent decision-making and
could lead to a conflict of interest
The Regulation for the Executive Committee is available on the Company’s website www.intralot.com
Evaluation of the Board of Directors
• The Board of Directors has established a procedure for the evaluation of the members in order
to ensure the effective functioning of the Board of Directors and the fulfillment of its role as
the highest governing body of the Company, responsible for the formulation of the strategy
and the supervision of the management and adequate control. The evaluation procedures and
the frequency with which they are applied aim at the timely identification of points that may
need improvement, the appropriate information and the initiation of actions, so as to ensure
the effective functioning of the Board of Directors and its Committees.
• The members of the Board of Directors are evaluated annually: (a) on a collective basis, taking
into account the composition, diversity and effective cooperation of the members of the Board
of Directors on the fulfillment of their duties Collective suitability means the suitability of all
members of the Board of Directors so that it effectively exercises its leading role in corporate
affairs, managing corporate affairs for the benefit of the company, shareholders and all
stakeholders and ensuring that management implements corporate strategy and (b) on an
individual basis concerning the assessment the contribution of each member to the successful
operation of the Board of Directors, taking into account the status of the member (executive,
non-executive, independent), participation in committees, the assumption of specific
responsibilities / projects, the time devoted, the behavior and the use of the member’s
knowledge and experience In addition, through the evaluation of the effectiveness of the
Committees of the Board of Directors, namely the Audit Committee and the Nomination and
Remuneration Committee, their contribution to the constructive fulfillment of the support of
the Board of Directors is assessed and evaluated.
VIII. Diversity Policy
The Company has and implements a diversity policy, aiming at promoting a suitable level of diversity
within the Board and achieving an inclusive set of directors. The collection of a wide range of
qualifications and skills when selecting directors ensures a variety of opinions and experiences, with a
view towards proper decision-making. This Policy includes the key diversity criteria applied by the
Company when selecting Directors and are key priorities (diversity objectives) of the Company, including
at least: a) adequate gender representation - at least twenty five percent (25%) of the total number of
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
141
directors must be of the other gender. (In case of fraction this percentage is rounded to the previous
whole number) b) ensuring equal treatment and equal opportunities for all potential Directors,
irrespective of gender, race, colour, national, ethnic or social origin, religion or belief, assets, birth,
marital status, disability, age or sexual orientation.
IX. SUSTAINABLE DEVELOPMENT POLICY
INTRODUCTION and OBJECTIVE
“INTRALOT S.A. INTEGRATED LOTTERY SYSTEMS AND SERVICES”
(hereinafter referred to as the “Company”) understands sustainable development as the development
that meets the needs of the present generation without compromising the ability of future generations
to meet their own needs. In this context, the Company has adopted Sustainable Development as this
is defined in the strategy of the European Union. This is described as a continuous process of change
and adaptation, rather than a static situation, aiming to meet the needs of the present generation
without jeopardizing the ability of future generations to meet their own needs. Sustainability is an
approach that is determined by the impact of a company’s activities on the environment and the
community, in general. It is measured on the basis of non-financial indicators relating to
environmental, social and governance issues (hereinafter “ESG”) which are economically important
(material) for the company and the collective interests of its stakeholders.
In view of the above, the Company has established and undertakes to comply with the present
Sustainable Development Policy (hereinafter the “Policy”) in which it sets out in a specific framework
the commitments and responsibilities it undertakes towards its employees, the industry, the
environment and the society, with the aim to keep playing a leading role in issues relating to
Sustainable Development, as it has demonstrated over time.
An effective sustainable development framework can enhance the Company’s performance, reputation,
and competitiveness.
In order to integrate sustainable development principles in all its business activities, it is important
that all human resources are involved and interested in the implementation of the Policy.
2. COMMITMENTS OF THE COMPANY
Sustainable development is a strategic orientation and priority of the Company, which is committed to
offering its services on the basis of its corporate principles and values and driven by its people. The
Sustainable Development Policy is formulated by the Company’s Management, which is committed to:
• The continuous development of the Company, the evolution of the business model, and the creation
of economic value for its shareholders and stakeholders,
• Ensuring business ethics,
• Providing products and services, with due regard for environmental and/or social impact,
• Fostering innovation,
• Monitoring the Company’s environmental footprint on a regular basis,
• Establishing and monitoring improvement targets relating to ESG and the overall positive footprint
of the Company.
For the achievement of these commitments, the Company focuses on the following sustainable
development pillars as described in the below sections
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
142
3. SUSTAINABLE DEVELOPMENT PILLARS
The Company’s approach to sustainable development is based on the following pillars:
Corporate Governance: The Company adopts the modern principles of Corporate Governance, that
is, a set of rules, procedures and good corporate management and control practices that are in
accordance with the current Greek legislation and the international best practices. Its Corporate
Governance policies aim to safeguard the rights of shareholders and the interests of all stakeholders,
with transparency and a high sense of responsibility. At the same time, in order to ensure a smooth
business operations flow, the Company has established specific procedures that regulate its operation
and define the framework of its daily activities. Particular attention is given to transparency issues
across its business activities through the creation of a strong framework for the prevention, detection,
and management of fraud, as well as the continuous training and information of its personnel.
Innovation - Research and Development: Innovation is a dynamic concept that is constantly evolving
and gives shape and form to corporate ideas for a better future.
In this context, the Company invests significant funds in research and development over time, in order
to enhance innovation and the continuous development of its products and services, while at the same
time supporting the development of new entrepreneurship by providing the appropriate resources and
know-how in this respect.
Part of the Company’s strategy is to pave a future focused on innovation, where all innovative ideas
can be freely expressed; For this reason the Company invests in the creation of innovative research
and education centers, while cultivating partnerships with educational institutions both in Greece and
abroad. In addition, it aims to establish partnerships with innovation pioneers globally and in different
areas of specialization, from electronic systems and information technology to innovative green
technologies.
Human Resources: The Company ensures a safe working environment, free of discrimination and
offers equal opportunities regardless of gender, age, or nationality. In addition, the trade union rights
of employees are always respected, health & safety rules are strictly followed and open door policies
are consistently applied.
One of the Company’s comparative advantages is the quality of its human resources.
For this reason, the Company focuses heavily on the selection, training, evaluation and rewarding of
its personnel.
In order to meet its needs in this respect, the Company focuses on attracting high quality personnel,
creating a safe and fair working environment, establishing objective evaluation criteria, while at the
same time supporting the development of employees. In addition to a satisfactory compensation and
benefits, the Company offers insurance, and inpatient and outpatient care benefits for all employees.
Further, it creates a pleasant working environment, encouraging employees to maintain a balance
between their professional and personal life. The Company ensures the establishment of a climate of
mutual trust and understanding through appropriate channels of communication between the
Management and employees, allowing the latter to share concerns or views relating to their work.
Market and Customers: The Company aims to provide advanced products and services, driven by
innovation, high quality standards and safety, which are offered at competitive prices. The products
and services offered by the Company meet the needs of customers throughout Greece and abroad in
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
143
a comprehensive way. The Company aims to develop an integrated supply chain in the light of the
values of sustainable development.
Environment: The Company complies with the applicable legislation regarding environmental
protection and takes the necessary measures to minimize environmental damage. The Company acts
with a view to demonstrating environmental responsibility and adapts its practices to the needs of
environmental protection. More specifically, it is committed to environmental responsibility and
sensitivity by implementing proactive measures to protect the environment and minimizing any
negative environmental impact. Also, it focuses on the reduction of its environmental footprint through
the adoption of regular recycling practices, the use of environmentally friendly raw materials, the
conservation of natural resources, the design of eco-friendly products, the reduction of the use of
plastic and the reduction of the pollution from transportation. In this context, the Company has
developed and implements an Environmental Management System (EMS), which provides an
assessment and a well-structured approach regarding all environmental issues arising from its
activities, ensuring the continuous monitoring and improvement of its environmental performance.
Society: The Company is committed towards society as a whole, aiming at improving the quality of
life and the well-being of the local communities in which it operates. It actively participates in initiatives
that contribute to the promotion of culture, education, and research. It supports actions aimed at
improving the quality of life of the society as a whole, through the improvement of the technological
skills of its members. It also contributes to the transition of the country to the digital era through
investments in innovative research and educational centers and by cultivating partnerships with leading
academic institutions in Greece, Europe, and the US. The Company also takes actions to combat
poverty, hunger, and social inequality. It collaborates with Non-Governmental Organizations and other
public benefit organizations to strengthen the livelihood opportunities of the least favored social groups.
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Independent Auditor’s Report
To the Shareholders of “INTRALOT S.A. INTEGRATED LOTTERY SYSTEMS AND SERVICES”
Report on the Audit of the separate and consolidated Financial Statements
Opinion
We have audited the accompanying separate and consolidated financial statements of INTRALOT S.A. INTEGRATED
LOTTERY SYSTEMS AND SERVICES (the Company), which comprise the separate and consolidated statement of financial
position as at December 31, 2021, the separate and consolidated income statement, statement of comprehensive income,
statement of changes in equity and cash flow statement for the year then ended, including a summary of significant accounting
policies and selected explanatory notes to the financial statements.
In our opinion, the accompanying separate and consolidated financial statements present fairly, in all material respects, the
financial position of the Company and its subsidiaries (the Group) as at December 31, 2021, the financial performance and cash
flows for the year then ended, in accordance with the International Financial Reporting Standards (IFRSs) as adopted by the
European Union.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs), as incorporated into the Greek Law.
Our responsibilities, under those standards are further described in the “Auditor’s Responsibilities for the Audit of the separate
and consolidated Financial Statements” section of our report. We are independent of the Company and its subsidiaries, during
the whole period of our audit, in accordance with the International Ethics Standards Board for Accountants “Code of Ethics for
Professional Accountants” as incorporated into the Greek Law and we have fulfilled our ethical responsibilities in accordance
with current legislation requirements and the aforementioned Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw your attention to Note 2.1.1 in the separate and consolidated financial statements, which describes that the Group, in
the context of capital management and in the light of the obligation to repay the Bonds due on September 2021, has completed
on August 3, 2021 the reorganization process of the aforementioned Bonds, through the issuance of new Bonds due on
September 2025 and the transfer of shares of the share capital of subsidiary in the USA to the holders of existing Bonds due
on September 2024. Through this process, a decrease in total debt liabilities of the Group has been achieved, however, from
the updated cash flow budget of the Group for the period until April 2023 considering also the operational risks described by
management, there is uncertainty as regards the ability of the Group to fully service the cash outflows required for its operations
during the aforementioned period.
As noted in Note 2.1.1, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on
the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the separate
and consolidated financial statements of the current year. These matters were addressed in the context of our audit of the
separate and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not express a
separate opinion on these matters. In addition to the matter described in the “Material Uncertainty Related to Going Concern”
section, we have determined the matters described below to be the key audit matters to be communicated in our report.
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Key audit matters
How our audit addressed the key audit matter
Evaluation of impairment for goodwill and intangible assets
(separate and consolidated financial statements)
As at December 31, 2021, the Group presented in the
consolidated Statement of Financial Position Goodwill
amounting to € 0.3 mil., Software amounting to € 16.5
mil., Development Costs amounting to € 72.8 mil.,
Licenses amounting to € 105.1 mil. and Other Intangibles
amounting to € 9.7 mil., as stated in note 2.16 of the
separate and consolidated financial statements.
According to the requirements of IAS 36, goodwill and
intangible assets with indefinite useful life are tested for
impairment at least annually, while intangible assets with
finite useful life are tested for impairment when there are
indications of impairment. For the determination of the
recoverable amount of the abovementioned assets,
management is required to exercise judgement and
significant estimates. During the year ended December
31, 2021, an impairment loss of € 15.2 mil. has been
recognized in the Income Statement of the Group.
Given the significance of the balances of the
abovementioned assets in the consolidated Statement of
Financial Position, the degree of subjectivity to the
assumptions underlying the impairment analysis and the
significant judgments and estimates required by
management, we consider the impairment of the
abovementioned assets as a key audit matter.
The Group’s disclosures regarding the accounting policy,
as well as the judgements and estimates that have been
used in the evaluation of impairment, are included in
notes 2.1.6, 2.1.11 and 2.1.28 of the separate and
consolidated financial statements.
Our audit procedures regarding the evaluation of impairment
of goodwill and intangible assets included, among others:
• Evaluation of the management's assessment of whether
there are indications of impairment of these assets.
• Evaluation of the policies, methodology and internal
control procedures adopted by the Group regarding the
assessment of impairment of these assets.
• Assessment of the suitability of either the fair value or the
value-in-use models.
• Assessment of the reliability of business plans of
management, including among others a comparison of
the budgeted figures against the actual financial figures.
• Assessment of the reasonableness of key assumptions
following comparison with external market information,
including analysts' reports as well as internal information.
Key assumptions that were evaluated, included revenue
and profit margins, capital investments in licenses and
equipment-related assets as well as discount rates.
• Use of a specialist with expertise in valuation and
business modeling, to evaluate the mathematical
precision of the models' calculations and to assess the
reasonableness of the discount rates used.
• Assessment of the sensitivity analysis on the underlying
assumptions and the potential impact on the relevant
assets' recoverable amount.
• Evaluation of the adequacy and appropriateness of the
disclosures in the accompanying financial statements
with respect to the above matter.
Evaluation of impairment in investments in subsidiaries
(separate financial statements)
As at December 31, 2021, the Company’s investments
in subsidiaries amounted to € 138.7 mil. Investments in
subsidiaries are initially measured at cost, which is
adjusted for any impairment losses. During the year
ended December 31, 2021, an impairment loss of € 6.8
mil. has been recognized.
For the determination of any impairment, management
compares the carrying amount of each subsidiary
For the evaluation of impairment in the Company's
investments in subsidiaries, we conducted the audit
procedures described in the key audit matter "Evaluation of
impairment for goodwill and intangible assets".
Following the completion of the procedures for the
Consolidated Financial Statements, we evaluated the
analysis prepared by management, according to which the
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(CGU) with its recoverable amount. The recoverable
amount is determined as the value in use, the
determination of which is supported by forecasts of
future operating flows, which are by nature subjective
and depend on various factors, such as future sales.
Given the significance of the balance of investments in
subsidiaries in the separate financial statements, the
degree of subjectivity to the assumptions underlying the
impairment analysis and the significant judgements and
estimates required by management, we consider the
assessment of impairment of investments in
subsidiaries as a key audit matter.
In addition, we focused on this area because the data
described in the key audit matter "Evaluation of
impairment for goodwill and intangible assets" has also
an impact on the investments in subsidiaries.
The Company’s disclosures regarding the accounting
policy, as well as the judgements and estimates that
have been used in the evaluation of impairment, are
included in note 2.1.6 (a) of the separate and
consolidated financial statements.
recoverable amounts of the CGUs were correlated with the
respective investments in subsidiaries.
In addition, we evaluated the adequacy and appropriateness
of the relevant disclosures in the accompanying financial
statements.
Debt restructuring
(consolidated financial statements)
As at December 31, 2021, the Group presented in the
consolidated Statement of Financial Position total debt
liabilities amounting to € 605 mil.
In August 3, 2021, Group completed the refinancing
process of the Notes due September 2021 through the
issuance of new Notes due September 2025 and the
transfer of shares of the share capital of Intralot, Inc to
the Noteholders of the existing Notes due September
2024.
Given that all the above transactions, from accounting
perspective, are quite complex, require in depth
assessment and interpretation of the Standards to
conclude on the appropriate accounting treatment and
result in significant adjustments in several financial
statement line items, we consider group debt
restructuring as a key audit matter.
The Group’s disclosures regarding the transactions and
their impact in the consolidated financial statements are
included in note 2.33 of the separate and consolidated
financial statements.
Our audit procedures regarding group debt restructuring
included, among others:
• Review of the minutes of General Meetings of the
Shareholders and Board of Directors meetings in order to
confirm that all the agreements have been appropriately
approved.
• Review of the legal documents and agreements related to
the transactions, as well as supporting documentation
related to restructuring, in order to confirm the substance of
the transactions.
• With the support of our IFRS experts, we have reviewed all
relevant to the transactions accounting memos prepared
either by management or by management’s advisors, we
have evaluated the appropriateness of the accounting
treatment in accordance with IFRS and how they are
depicted in the financial statements.
• Evaluation of the adequacy and appropriateness of the
disclosures in the accompanying financial statements with
respect to the above matter.
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Other Information
Management is responsible for the other information. The other information, included in the Annual Financial Report, is
comprised of the Management Report of the Board of Directors, for which reference is also made in section “Report on Other
Legal and Regulatory Requirements”, and the Representations of the Members of the Board of Directors, but does not include
the financial statements and the auditor’s report thereon.
Our opinion on the separate and consolidated financial statements do not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the separate and consolidated financial statements, our responsibility is to read the other
information, and in doing so, consider whether the other information is materially inconsistent with the separate and consolidated
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we conclude,
based on our procedures performed, that there is a material misstatement therein, we are required to communicate that matter.
We have nothing to report, regarding the aforementioned matter.
Responsibilities of Management and Those Charged with Governance for the separate and
consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the separate and consolidated financial statements in
accordance with the IFRSs as adopted by the European Union and for such internal control as management determines is
necessary to enable the preparation of separate and consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the separate and consolidated financial statements, management is responsible for assessing the Company’s and
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting, unless there is an intention to liquidate the Company or the Group or to cease operations, or there
is no realistic alternative but to do so.
The Audit Committee (art. 44 L. 4449/2017) of the Company is responsible for overseeing the Company’s and Group’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the separate and consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the separate and consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs, as incorporated into the Greek Law, will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users, taken on the basis of these separate and consolidated financial statements.
As part of an audit in accordance with ISAs, as incorporated into the Greek Law, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the separate and consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company's and Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
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doubt on the Company's or Group's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the separate and
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company of the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the separate and consolidated financial statements,
including the disclosures, and whether the separate and consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express audit opinion on the separate and consolidated financial statements. We are responsible
for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the separate and consolidated financial statements of the current period and are therefore the key
audit matters.
Report on Other Legal and Regulatory Requirements
1. Management Report of the Board of Directors
Taking into consideration that management is responsible for the preparation of the Management Report of the Board of
Directors and Corporate Governance Statement that is included therein, according to the provisions of paragraph 5 of Article 2
of Law 4336/2015 (part B), we note the following:
a. The Management Report of the Board of Directors includes a Corporate Governance Statement that provides the
information required by Article 152 of Law 4548/2018.
b. In our opinion, the Management Report of the Board of Directors has been prepared in accordance with the legal
requirements of articles 150-151 and 153-154 and paragraph 1 (c and d) of Article 152 of the Law 4548/2018 and the
content of the report is consistent with the accompanying financial statements for the year ended December 31, 2021.
c. Based on the knowledge we obtained during our audit of the Company "INTRALOT S.A. INTEGRATED LOTTERY
SYSTEMS AND SERVICES" and its environment, we have not identified any material misstatements in the
Management Report of the Board of Directors.
2. Complementary Report to the Audit Committee
Our audit opinion on the accompanying separate and consolidated financial statements is consistent with the Complementary
Report to the Company’s Audit Committee, in accordance with Article 11 of the European Union (EU) Regulation 537/2014.
3. Non-audit Services
We have not provided to the Company and its subsidiaries any prohibited non-audit services referred to in Article 5 of EU
Regulation 537/2014. The permitted non-audit services that we have provided to the Company and its subsidiaries during the
year ended December 31, 2021, are disclosed in Note 2.6 of the accompanying separate and consolidated financial statements.
4. Auditor’s Appointment
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We have been appointed as joint statutory auditors by the Shareholders’ Annual General Meeting of the Company on May 23,
2013. Since then, we have been appointed as joint statutory auditors for a total period of eight (8) years based on the decisions
of the Shareholders’ Annual General Meetings.
5. Internal Regulation Code
The Company has in effect Internal Regulation Code in conformance with the provisions of Article 14 of Law 4706/2020.
6. Assurance Report on European Single Electronic Format
We examined the digital records of the Company “INTRALOT S.A. INTEGRATED LOTTERY SYSTEMS AND SERVICES”
(hereinafter the “Company” or/and the “Group”), prepared in accordance with the European Single Electronic Format (ESEF)
as defined by the European Commission Delegated Regulation 2019/815, amended by the Regulation (EU) 2020/1989
(hereinafter “ESEF Regulation”), which comprise the separate and consolidated financial statements of the Company and the
Group for the year ended December 31, 2021, in XHTML format (213800XNTZ8P8L74HM35-2021-12-31-en.xhtml), as well as
the provided XBRL file (213800XNTZ8P8L74HM35-2021-12-31-en.zip) with the appropriate mark-up, on the aforementioned
consolidated financial statements.
Regulatory framework
The digital records of the European Single Electronic Format are prepared in accordance with ESEF Regulation and the
European Commission Interpretative Communication 2020/C 379/01 of November 10, 2020, in conformance with Law
3556/2007 and the relevant announcements of the Hellenic Capital Market Commission and the Athens Stock Exchange
(hereinafter “ESEF Regulatory Framework”). In summary, this Framework includes, among others, the following requirements:
• All annual financial reports shall be prepared in XHTML format.
• For the consolidated financial statements in accordance with IFRS, financial information included in the Income
Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity
and Cash Flow Statement, shall be marked-up with XBRL tags, in accordance with the effective ESEF Taxonomy.
ESEF technical specifications, including the relevant taxonomy, are set out in the ESEF Regulatory Technical
Standards.
The requirements set out in the effective ESEF Regulatory Framework constitute the appropriate criteria for expressing a
conclusion of reasonable assurance.
Responsibilities of Management and Those Charged with Governance
Management is responsible for the preparation and submission of the separate and consolidated financial statements of the
Company for the year ended December 31, 2021, in accordance with the requirements of the ESEF Regulatory Framework,
and for such internal control as management determines is necessary to enable the preparation of digital records that are free
from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities
Our responsibility is to design and conduct this assurance engagement, in accordance with No. 214/4/11-02-2022 Decision of
the Board of Directors of the Hellenic Accounting and Auditing Standards Oversight Board (HAASOB) and the “Guidelines on
the auditors’ engagement and assurance report on the European Single Electronic Format (ESEF) for issuers whose securities
are admitted to trading on a regulated market in Greece” as issued by the Institute of Certified Public Accountants of Greece on
February 14, 2022 (hereinafter “ESEF Guidelines”), in order to obtain reasonable assurance that the separate and consolidated
financial statements of the Company prepared by management in accordance with ESEF, are in compliance, in all material
respects, with the effective ESEF Regulatory Framework.
We conducted our work in accordance with the International Ethics Standards Board of Accountants “Code of Ethics for
Professional Accountants” (IESBA Code), as incorporated into the Greek Law, and we have complied with the ethical
requirements of independence, in accordance with Law 4449/2017 and EU Regulation 537/2014.
We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000 “Assurance
Engagements other than Audits or Reviews of Historical Financial Information” and our procedures are limited to the
© 2020 SOL SA
Chartered Accountants Management Consultants | 3 Fok. Negri str, 112 57 Athens
D: +30 210 8691100 F: +30 210 8617328 | www.solae.gr
© 2022 Grant Thornton S.A.
Chartered Accountants Management Consultants | 58, Katehaki Av., 115 25
Athens
D: +30 210 7280000 F: +30 210 7212222 | www.grant-thornton.gr
grant-thornton.gr
requirements of the ESEF Guidelines. Reasonable assurance is a high level of assurance, but is not a guarantee that this work
will always detect a material misstatement of non-compliance with the requirements of the ESEF Regulation.
Conclusion
Based on the procedures performed and the evidence obtained, the separate and consolidated financial statements of the
Company for the year ended December 31, 2021, in XHTML format (213800XNTZ8P8L74HM35-2021-12-31-en.xhtml), as well
as the provided XBRL file (213800XNTZ8P8L74HM35-2021-12-31-en.zip) with the appropriate mark-up on the aforementioned
consolidated financial statements, have been prepared, in all material respects, in accordance with the requirements of the
ESEF Regulatory Framework.
Athens, April 8, 2022
The Certified Public Accountants
Evangelos D. Kosmatos
Panagiotis Noulas
SOEL Reg. No. 13561
SOEL Reg. No 40711
SOL S.A.
Member of Crowe Global
3, Fok. Negri Street, 112 57 Athens, Greece
Institute of CPA (SOEL) Reg. No. 125
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
151
ANNUAL FINANCIAL STATEMENTS
INCOME STATEMENT OF THE GROUP / COMPANY FOR THE YEAR 2021
Amounts reported in thousand €
Notes
GROUP
COMPANY
1/1-31/12/2021
1/1-31/12/2020 Restated*
1/1-31/12/2021
1/1-31/12/2020 Restated*
Sale Proceeds
2.2
413.998
344.885
43.819
47.672
Less: Cost of Sales
2.4-2.6
-294.554
-271.702
-38.098
-32.122
Gross Profit /(loss)
119.444
73.183
5.721
15.550
Other Operating Income
2.3
21.600
17.445
11.630
249
Selling Expenses
2.4-2.6
-22.576
-23.343
-6.410
-9.300
Administrative Expenses
2.4-2.6
-73.591
-64.241
-13.084
-14.686
Research and Development Expenses
2.4-2.6
-1.542
-2.859
-1.542
-2.859
Reorganization expenses
-17.170
-6.754
-11.190
-2.188
Other Operating Expenses
2.9
-3.940
-1.960
-605
-593
EBIT
2.1.27
22.225
-8.529
-15.480
-13.827
EBITDA
2.1.27
110.440
66.191
-464
3.003
Income/(expenses) from participations and investments
2.7
45.112
-3.895
65.089
1.939
Gain/(loss) from assets disposal, impairment loss and write-off of assets
2.8
-16.318
-21.028
-8.097
-12.116
Interest and similar expenses
2.10
-60.942
-49.903
-23.913
-20.570
Interest and similar income
2.10
47.381
1.539
5.765
4.938
Exchange Differences
2.11
-1.165
-8.639
677
-859
Profit / (loss) from equity method consolidations
2.31
213
-1.476
0
0
Profit / (loss) to net monetary position
2.34
595
61
0
0
Profit/(loss) before tax from continuing operations
37.101
-91.870
24.041
-40.495
Tax
2.12
-4.385
-7.346
3.754
2
Profit / (loss) after tax from continuing operations (a)
32.716
-99.216
27.795
-40.493
Profit / (loss) after tax from discontinued operations (b) ¹
2.31
-9.225
-3.684
0
0
Profit / (loss) after tax (continuing and discontinued operations) (a)+(b)
23.491
-102.900
27.795
-40.493
Attributable to:
Equity holders of parent
-Profit/(loss) from continuing operations
26.554
-102.860
27.795
-40.493
-Profit/(loss) from discontinued operations ¹
2.31
-9.093
-3.182
0
0
17.461
-106.042
27.795
-40.493
Non-Controlling Interest
-Profit/(loss) from continuing operations
6.162
3.644
0
0
-Profit/(loss) from discontinued operations ¹
2.31
-131
-502
0
0
6.031
3.142
0
0
Earnings/(losses) after tax per share (in €) from total operations
-basic
2.13
0,1177
-0,7177
0,1874
-0,2740
-diluted
2.13
0,1177
-0,7177
0,1874
-0,2740
Weighted Average number of shares
148.288.968
147.761.688
148.288.968
147.761.688
¹ The activities of Group subsidiaries and associates in Poland (Totolotek S.A.), in Bulgaria (Bilot EOOD, Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd, ICS S.A.), in Brazil (Intralot do Brazil Ltda,
OLTP Ltda) and Peru (Intralot de Peru SAC) are presented as discontinued operations pursuant to IFRS5 (note 2.31.A.VIII).
*Restated due to change in accounting policy (note 2.1.4)
The primary financial statements should be read in conjunction with the accompanying notes.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
152
STATEMENT OF COMPREHENSIVE INCOME OF THE GROUP / COMPANY FOR THE YEAR 2021
Amounts reported in thousand €
Notes
GROUP
COMPANY
1/1-31/12/2021
1/1-31/12/2020 Restated*
1/1-31/12/2021
1/1-31/12/2020 Restated*
Profit / (loss) after tax (continuing and discontinued operations) (a)+(b)
23.491
-102.900
27.795
-40.493
Attributable to:
Equity holders of parent
-Profit/(loss) from continuing operations
26.554
-102.860
27.795
-40.493
-Profit/(loss) from discontinued operations ¹
2.31
-9.093
-3.182
0
0
17.461
-106.042
27.795
-40.493
Non-Controlling Interest
-Profit/(loss) from continuing operations
6.162
3.644
0
0
-Profit/(loss) from discontinued operations ¹
2.31
-131
-502
0
0
6.031
3.142
0
0
Other comprehensive income after tax
Amounts that may not be reclassified to profit or loss:
Defined benefit plans revaluation for subsidiaries and parent company
2.26
12
-143
20
-64
Defined benefit plans revaluation for associates and joint ventures
0
0
0
0
Valuation of assets measured at fair value through other comprehensive income of parent
and subsidiaries
2.18
-50
-112
41
1
Amounts that may be reclassified to profit or loss:
Exchange differences on subsidiaries consolidation
2.23
1.787
-15.171
0
0
Share of exchange differences on consolidation of associates and joint ventures
2.23
1.329
-735
0
0
Other comprehensive income/ (expenses) after tax
3.078
-16.161
61
-63
Total comprehensive income / (expenses) after tax
26.569
-119.061
27.856
-40.556
Attributable to:
Equity holders of parent
22.124
-119.925
27.856
-40.556
Non-Controlling Interest
4.446
865
0
0
¹ The activities of Group subsidiaries and associates in Poland (Totolotek S.A.), in Bulgaria (Bilot EOOD, Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd, ICS S.A.), in Brazil (Intralot
do Brazil Ltda, OLTP Ltda) and Peru (Intralot de Peru SAC) are presented as discontinued operations pursuant to IFRS5 (note 2.31.A.VIII).
*Restated due to change in accounting policy (note 2.1.4)
The primary financial statements should be read in conjunction with the accompanying notes.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
153
INCOME STATEMENT OF THE GROUP / COMPANY FOR THE 4
th
QUARTER OF 2021
Amounts reported in thousand €
Notes
GROUP
COMPANY
1/10-31/12/2021
1/10-31/12/2020 Restated*
1/10-31/12/2021
1/10-31/12/2020 Restated*
Sale Proceeds
2.2
111.211
101.528
23.632
16.157
Less: Cost of Sales
2.4-2.6
-78.224
-77.527
-15.454
-8.679
Gross Profit /(loss)
32.987
24.001
8.178
7.478
Other Operating Income
2.3
5.740
5.022
1.353
135
Selling Expenses
2.4-2.6
-6.448
-6.003
-1.775
-2.692
Administrative Expenses
2.4-2.6
-25.987
-17.106
-4.296
-4.161
Research and Development Expenses
2.4-2.6
-330
-797
-330
-797
Reorganization expenses
-296
-3.870
-80
-2.119
Other Operating Expenses
2.9
-900
-621
-3
-203
EBIT
2.1.27
4.766
626
3.047
-2.359
EBITDA
2.1.27
27.839
20.935
6.424
3.269
Income/(expenses) from participations and investments
2.7
845
-520
-1.546
481
Gain/(loss) from assets disposal, impairment loss and write-off of assets
2.8
-12.234
-20.990
-8.097
-12.126
Interest and similar expenses
2.10
-10.332
-12.374
-5.854
-5.290
Interest and similar income
2.10
479
163
5.062
2.648
Exchange Differences
2.11
-3.411
-4.888
210
-1.061
Profit / (loss) from equity method consolidations
2.31
34
72
0
0
Profit / (loss) to net monetary position
2.34
144
-181
0
0
Profit/(loss) before tax from continuing operations
-19.709
-38.092
-7.178
-17.707
Tax
2.12
3.244
-2.306
7.004
2.683
Profit / (loss) after tax from continuing operations (a)
-16.465
-40.398
-174
-15.024
Profit / (loss) after tax from discontinued operations (b) ¹
2.31
0
-487
0
0
Profit / (loss) after tax (continuing and discontinued operations) (a)+(b)
-16.465
-40.885
-174
-15.024
Attributable to:
Equity holders of parent
-Profit/(loss) from continuing operations
-17.952
-42.412
-174
-15.025
-Profit/(loss) from discontinued operations ¹
2.31
0
-147
0
0
-17.952
-42.559
-174
-15.025
Non-Controlling Interest
-Profit/(loss) from continuing operations
1.485
2.013
0
0
-Profit/(loss) from discontinued operations ¹
2.31
0
-341
0
0
1.485
1.672
0
0
Earnings/(losses) after tax per share (in €) from total operations
-basic
2.13
-0,1211
-0,2880
-0,0012
-0,1017
-diluted
2.13
-0,1211
-0,2880
-0,0012
-0,1017
Weighted Average number of shares
148.288.968
147.761.688
148.288.968
147.761.688
¹ The activities of Group subsidiaries and associates in Poland (Totolotek S.A.), in Bulgaria (Bilot EOOD, Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd, ICS S.A.), in Brazil (Intralot
do Brazil Ltda, OLTP Ltda) and Peru (Intralot de Peru SAC) are presented as discontinued operations pursuant to IFRS5 (note 2.31.A.VIII).
*Restated due to change in accounting policy (note 2.1.4)
The primary financial statements should be read in conjunction with the accompanying notes.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
154
STATEMENT OF COMPREHENSIVE INCOME OF THE GROUP / COMPANY FOR THE 4th QUARTER OF 2021
Amounts reported in thousand €
Notes
GROUP
COMPANY
1/10-31/12/2021
1/10-31/12/2020 Restated*
1/10-31/12/2021
1/10-31/12/2020 Restated*
Profit / (loss) after tax (continuing and discontinued operations) (a)+(b)
-16.465
-40.885
-174
-15.024
Attributable to:
Equity holders of parent
-Profit/(loss) from continuing operations
-17.952
-42.412
-174
-15.025
-Profit/(loss) from discontinued operations ¹
2.31
0
-147
0
0
-17.952
-42.559
-174
-15.025
Non-Controlling Interest
-Profit/(loss) from continuing operations
1.485
2.013
0
0
-Profit/(loss) from discontinued operations ¹
2.31
0
-341
0
0
1.485
1.672
0
0
Other comprehensive income after tax
0
0
0
0
Amounts that may not be reclassified to profit or loss:
0
0
0
0
Defined benefit plans revaluation for subsidiaries and parent company
2.26
6
-80
20
-64
Defined benefit plans revaluation for associates and joint ventures
0
0
0
0
Valuation of assets measured at fair value through other comprehensive income of parent and
subsidiaries
2.18
-32
76
-7
6
Amounts that may be reclassified to profit or loss:
0
0
0
0
Exchange differences on subsidiaries consolidation
2.23
3.923
-5.229
0
0
Share of exchange differences on consolidation of associates and joint ventures
2.23
202
-282
0
0
Other comprehensive income/ (expenses) after tax
4.099
-5.515
13
-58
Total comprehensive income / (expenses) after tax
-12.366
-46.400
-161
-15.082
Attributable to:
0
0
0
0
Equity holders of parent
-13.001
-48.187
-161
-15.084
Non-Controlling Interest
635
1.787
0
0
¹ The activities of Group subsidiaries and associates in Poland (Totolotek S.A.), in Bulgaria (Bilot EOOD, Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd, ICS S.A.), in Brazil (Intralot
do Brazil Ltda, OLTP Ltda) and Peru (Intralot de Peru SAC) are presented as discontinued operations pursuant to IFRS5 (note 2.31.A.VIII).
*Restated due to change in accounting policy (note 2.1.4)
The primary financial statements should be read in conjunction with the accompanying notes.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
155
STATEMENT OF FINANCIAL POSITION OF THE GROUP/COMPANY
Amounts reported in thousand €
Notes
GROUP
COMPANY
31/12/2021
31/12/2020
Restated*
31/12/2021
31/12/2020
Restated*
ASSETS
Tangible assets
2.14
123.210
134.332
22.820
25.332
Intangible assets
2.16
204.306
202.014
57.791
70.778
Investment in subsidiaries, associates and joint ventures
2.17
13.434
12.786
143.833
128.239
Other financial assets
2.18
97
262
80
39
Deferred Tax asset
2.12
5.021
773
2.998
0
Other long-term receivables
2.19
3.194
5.411
45
112
Total Non-Current Assets
349.261
355.578
227.568
224.500
Inventories
2.21
18.657
25.704
3.593
7.875
Trade and other short-term receivables
2.20
130.198
151.403
105.177
125.516
Other financial assets
2.18
13
14
0
0
Cash and cash equivalents
2.22
107.339
99.984
8.338
7.959
Total Current Assets
256.207
277.105
117.108
141.350
Assets held for sale ¹
2.31
0
16.167
0
5.528
TOTAL ASSETS
605.468
648.850
344.676
371.378
EQUITY AND LIABILITIES
Share capital
2.23
45.679
47.089
45.679
47.089
Treasury shares
2.23
-3.018
-8.528
-3.018
-8.528
Other reserves
2.23
68.989
65.760
54.518
55.222
Foreign currency translation
2.23
-96.854
-100.908
0
0
Retained earnings
-138.246
-223.232
-59.388
-83.974
Reserves from profit / (loss) recognized directly in other
comprehensive income and are related to assets held for sale ¹
0
-644
0
0
Total equity attributable to shareholders of the parent
-123.450
-220.463
37.791
9.809
Non-Controlling Interest
7.985
3.698
0
0
Total Equity
-115.465
-216.765
37.791
9.809
Long term debt
2.25
578.805
468.695
250.425
308.338
Staff retirement indemnities
2.26
1.354
1.389
1.176
1.168
Other long-term provisions
2.31
15.189
10.818
10.577
10.465
Deferred Tax liabilities
2.12
1.468
5.443
0
4.044
Other long-term liabilities
2.28
1.152
1.449
36
51
Long term lease liabilities
2.25
9.179
7.469
519
1.193
Total Non-Current Liabilities
607.147
495.263
262.733
325.260
Trade and other short-term liabilities
2.29
87.050
89.499
39.734
35.702
Short term debt and lease liabilities
2.25
16.535
274.914
2.522
450
Income tax payable
5.571
3.387
1.856
0
Short term provision
2.31
4.630
2.552
40
157
Total Current Liabilities
113.786
370.352
44.152
36.309
TOTAL LIABILITIES
720.933
865.615
306.885
361.569
TOTAL EQUITY AND LIABILITIES
605.468
648.850
344.676
371.378
¹ The activities of the associate company Intralot de Peru SAC are presented as assets held for sale pursuant to IFRS 5 (note
2.31.A.VIII).
*Restated due to change in accounting policy (note 2.1.4)
The primary financial statements should be read in conjunction with the accompanying notes.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
156
STATEMENT OF CHANGES IN EQUITY OF THE GROUP
STATEMENT OF CHANGES IN EQUITY INTRALOT
GROUP
Share
Capital
Treasury
Shares
Legal
Reserve
Other
Reserves
Foreign
exchange
differences
Retained
Earnings
Assets held for
sale reserves ¹
Total
Non-Controlling
Interest
Grand Total
(Amounts reported in thousands of €)
Opening Balance as of January 1, 2021
47.089
-8.528
23.638
42.122
-100.908
-223.232
-644
-220.463
3.698
-216.765
Effect on retained earnings from previous years
adjustments
0
0
0
0
0
42
0
42
-3
39
Period’s results
0
0
0
0
0
17.461
0
17.461
6.031
23.491
Other comprehensive income / (expenses) after tax
0
0
0
-33
4.698
-2
0
4.663
-1.585
3.078
Dividends to equity holders of parent / non-controlling
interest
0
0
0
0
0
0
0
0
-5.006
-5.006
Adjustment to net monetary position
0
0
70
0
0
197
0
267
267
534
Discontinued operations
0
0
0
0
-644
0
644
0
0
0
Cancelation of own shares
-1.410
4.618
0
0
0
-3.208
0
0
0
0
Sale of own shares
0
891
0
-765
0
0
0
126
0
126
Subsidiary disposal/liquidation
0
0
0
0
0
0
0
0
7.125
7.125
Effect due to change in participation
0
0
0
0
0
74.454
0
74.454
-2.542
71.912
Transfer between reserves
0
0
600
3.357
0
-3.957
0
0
0
0
Balances as December 31 2021
45.679
-3.018
24.308
44.681
-96.854
-138.246
0
-123.450
7.985
-115.465
STATEMENT OF CHANGES IN EQUITY INTRALOT
GROUP
Share
Capital
Treasury
Shares
Legal
Reserve
Other
Reserves
Restated*
Foreign
exchange
differences
Retained
Earnings
Restated*
Assets held for
sale reserves ¹
Total
Non-Controlling
Interest
Grand Total
(Amounts reported in thousands of €)
Opening Balance as of January 1, 2020
47.089
-8.528
25.040
42.252
-87.903
-111.321
0
-93.371
197
-93.174
Revaluation from reconsideration of IAS 19
0
0
0
10
0
1.976
0
1.986
0
1.986
Opening Balance as at 1 January 2020 after the
revaluation from reconsideration of IAS 19
47.089
-8.528
25.040
42.262
-87.903
-109.345
0
-91.385
197
-91.188
Effect on retained earnings from previous years
adjustments
0
0
0
0
0
137
0
137
-142
-5
Period’s results
0
0
0
0
0
-106.043
0
-106.043
3.143
-102.900
Other comprehensive income / (expenses) after tax
0
0
0
-198
-13.650
-35
0
-13.883
-2.278
-16.161
Dividends to equity holders of parent / non-controlling
interest
0
0
0
0
0
0
0
0
-8.875
-8.875
Subsidiary disposal/liquidation
0
0
0
0
0
0
0
0
5
5
Effect due to change in participation percentage
0
0
0
0
0
-9.364
0
-9.364
8.418
-946
Adjustment to net monetary position
0
0
41
0
0
35
0
76
76
152
Discontinued operations
0
0
0
0
644
0
-644
0
0
0
Intragroup debt assumption by non-controlling interest
shareholder
0
0
0
0
0
0
0
0
3.152
3.152
Transfer between reserves
0
0
-1.443
60
0
1.383
0
0
0
0
Balances as December 31 2020
47.089
-8.528
23.638
42.122
-100.908
-223.232
-644
-220.463
3.698
-216.765
1
Reserves from profit / (loss) recognized directly in other comprehensive income and are related to assets held for sale (note 2.31.A.VIII). ¹ The activities of Group subsidiaries and associates in
Poland (Totolotek S.A.), in Bulgaria (Bilot EOOD, Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd, ICS S.A.), in Brazil (Intralot do Brazil Ltda, OLTP Ltda) and Peru (Intralot de Peru
SAC) are presented as discontinued operations pursuant to IFRS5 (note 2.31.A.VIII).
*Restated due to change in accounting policy (note 2.1.4)
The primary financial statements should be read in conjunction with the accompanying notes.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
157
STATEMENT OF CHANGES IN EQUITY OF THE COMPANY
STATEMENT OF CHANGES IN EQUITY INTRALOT S.A.
Share
Capital
Treasury
Shares
Legal
Reserve
Other
Reserves
Retained
Earnings
Total
(Amounts reported in thousands of €)
Opening Balance as of January 1, 2021
47.089
-8.528
15.896
39.326
-83.974
9.809
Period’s results
0
0
0
0
27.795
27.795
Other comprehensive income /(expenses) after taxes
0
0
0
61
0
61
Cancelation of own shares
-1.410
4.618
0
0
-3.208
0
Sale of own shares
0
891
0
-765
0
126
Balances as December 31 2021
45.679
-3.018
15.896
38.622
-59.388
37.791
STATEMENT OF CHANGES IN EQUITY INTRALOT S.A.
Share
Capital
Treasury
Shares
Legal Reserve
Other Reserves
Restated*
Retained
Earnings
Restated*
Total
(Amounts reported in thousands of €)
Opening Balance as of January 1, 2020
47.089
-8.528
15.896
39.387
-45.261
48.583
Revaluation from reconsideration of IAS 19
0
0
0
4
1.779
1.783
Opening Balance as at 1 January 2020 after the revaluation
from reconsideration of IAS 19
47.089
-8.528
15.896
39.391
-43.482
50.366
Period’s results
0
0
0
0
-40.493
-40.493
Other comprehensive income /(expenses) after taxes
0
0
0
-63
0
-63
Balances as December 31 2020
47.089
-8.528
15.896
39.326
-83.974
9.809
*Restated due to change in accounting policy (note 2.1.4)
The primary financial statements should be read in conjunction with the accompanying notes.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
158
CASH FLOW STATEMENT OF THE GROUP/COMPANY
Amounts reported in thousands of € (total operations)
Notes
GROUP
COMPANY
1/1-31/12/2021
1/1-31/12/2020
Restated*
1/1-31/12/2021
1/1-31/12/2020
Restated*
Operating activities
Profit / (loss) before tax from continuing operations
37.101
-91.870
24.041
-40.495
Profit / (loss) before tax from discontinued operations
2.31
-7.892
-3.513
0
0
Profit / (loss) before Taxation
29.209
-95.383
24.041
-40.495
Plus / Less adjustments for:
Depreciation and amortization
2.5
71.231
68.686
13.850
14.643
Provisions
19.975
22.887
10.235
12.738
Results (income, expenses, gain and loss) from
investing activities
-34.502
15.754
-65.777
-1.094
Interest and similar expenses
2.10
60.964
50.008
23.913
20.570
Interest and similar income
2.10
-47.386
-1.550
-5.765
-4.938
(Gain) / loss to net monetary position
2.34
-595
-61
0
0
Reorganization expenses
2.1.27
17.170
6.754
11.190
2.188
Plus / less adjustments for changes in working capital:
Decrease / (increase) of inventories
-2.395
7.155
556
1.482
Decrease / (increase) of receivable accounts
23.168
-19.233
-7.342
-17.839
(Decrease) / increase of payable accounts (except
banks)
-33.116
3.951
-1.336
-6.365
Income tax (paid)/received
3.840
-14.511
5.241
-9.468
Total inflows / (outflows) from operating
activities (a)
2.31
107.563
44.457
8.806
-28.578
Investing Activities
(Purchases) / Sales of subsidiaries, associates, joint
ventures and other investments
2.31
10.295
-3.470
10.424
15.667
Purchases of tangible and intangible assets
2.14-
2.16
-23.184
-35.952
-2.578
-7.822
Proceeds from sales of tangible and intangible assets
2.14-
2.16
281
41
15
6
Interest received
2.077
2.153
4.131
1.688
Dividends received
1.210
3.441
5.511
3.203
Total inflows / (outflows) from investing
activities (b)
-9.322
-33.787
17.503
12.742
Financing Activities
Sale of own shares
126
0
126
0
Cash inflows from loans
2.25
10.109
59.009
6.003
12.000
Repayment of loans
2.25
-13.243
-67.442
-17.810
-1.789
Repayments of lease liabilities
2.25
-3.422
-6.901
-361
-797
Interest and similar expenses paid
2.25
-56.483
-45.941
-6.015
-1.535
Dividends paid
-6.479
-8.461
0
0
Reorganization expenses paid
-17.732
-6.754
-7.984
-68
Total inflows / (outflows) from financing
activities (c)
-87.125
-76.490
-26.040
7.811
Net increase / (decrease) in cash and cash
equivalents for the period (a) + (b) + (c)
11.117
-65.821
269
-8.025
Cash and cash equivalents at the beginning of
the period
2.22
99.984
171.114
7.959
16.172
1
Net foreign exchange difference
-3.761
-5.310
111
-187
Cash and cash equivalents at the end of
the period from total operations
2.22
1107.339
107.339
1107.339
99.984
1107.339
8.338
1107.339
7.959
Cash and cash equivalents at the beginning of the period
2.22
99.984
171.114
7.959
16.172
*Restated due to change in accounting policy (note 2.1.4)
The primary financial statements should be read in conjunction with the accompanying notes.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
159
1. GENERAL INFORMATION
INTRALOT S.A. – “Integrated Lottery Systems and Gaming Services”, with the distinct title «INTRALOT» is a
business entity that was established based on the Laws of Hellenic Republic, whose shares are traded in the
Athens Stock Exchange. Reference to «INTRALOT» or the «Company» includes INTRALOT S.A. whereas reference
to the «Group» includes INTRALOT S.A. and its fully consolidated subsidiaries, unless otherwise stated. The
Company was established in 1992 and has its registered office in 19 km, Markopoulou Ave., 19 002 Peania -
Attica, Greece.
INTRALOT, a public listed company, is the leading supplier of integrated gaming and transaction processing
systems, innovative game content, sports betting management and interactive gaming services to state-licensed
gaming organizations worldwide. Its broad portfolio of products & services, its know-how of Lottery, Betting,
Racing & Video Lottery operations and its leading-edge technology, give INTRALOT a competitive advantage,
which contributes directly to customers’ efficiency, profitability and growth. With presence in 41 countries and
states, with approximately 1.800 employees and revenues from continuing operations of €414 million for 2021,
INTRALOT has established its presence on all 5 major continents.
The financial statements of the Group and the Company for the period ended December 31, 2021 were approved
by the Board of Directors on April 8, 2022.
2. NOTES TO ANNUAL FINANCIAL STATEMENTS
2.1.1 Basis of preparation of the Financial Statements
The attached financial statements have been prepared on the historical cost basis, except for the financial assets
measured at fair value through other comprehensive income and the derivative financial instruments that are
measured at fair value, or at cost if the difference is not a significant amount, and on condition that the Company
and the Group would continue as a going concern, as described below. The attached financial statements are
presented in Euros and all values are rounded to the nearest thousand (€000) except if indicated otherwise.
Going concern
The Group maintains sufficient liquidity as to cover its cash needs in the near future. The recently completed
exchange offers in relation to Facility A (“Notes 2021”) and Facility B (“Notes 2024”) were implemented in a
consensual way, achieving extension of the Notes 2021 maturity until at least 2024 and without any changes in
the 2024 SUNs indenture (face value of the Notes preserved), while securing significant deleverage through the
debt-to-equity exchange. This deleverage will reduce the debt servicing cost substantially and will enhance the
liquidity profile of the Group. In addition to this, apart from the New Notes that will be served directly from the
US subsidiary, the indenture allows significant flexibility to the Group for cash upstreaming from the US to the
Parent to serve cash needs up to a substantial weight. Equivalently important, the successful execution of the
two transactions has triggered the upgrade of company’s CFR from rating agencies, which subsequently is
expected to strengthen relationships with financing institutions and regain access to funds to allow the Group to
implement its business plan and take advantage of new appealing opportunities both in the Lottery as well as in
the Sports Betting markets.
In this field, the Management is continuously monitoring the cash flow of the Group and enhancing its efforts for
further sales increase through operational improvements, while at the same time focusing on the cost reduction
through operational efficiencies and development of synergies.
It should be noted that unlike 2020, when the COVID-19 pandemic affected adversely Group’ s financial results
as was the case in many other sectors, in 2021, governments have put a lot of effort into the fight against COVID-
19 while the progress of vaccinations, especially in the developed world, allowed governments to loosen restriction
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
160
measures. Economic activity and consumer demand are picking up in most regions, but the uptake is uneven
across industries.
The return to normalcy does not seem to be too far away, a fact that creates optimism for our Group.
However, the first quarter of this year was marked by a new threat after the war in Ukraine, which fueled a global
energy crisis creating a significant uncertainty for the near future. The Group is not directly affected by this fact
as it has absolutely no activity or any kind of dependence in the wider war zone, while also the nature of its
activity is labor intensive and therefore is not directly affected by changes in energy prices. However, we can not
ignore the risk of indirect effects on our business from the apparent decrease of consumer’s household income
due to inflation and rising prices for essential goods, which may result in a reduction of consumption in non-
essential goods, such as entertainment including the gambling industry, but by the time the Financial Statements
are prepared we have no indication that this is the case. In addition, the operational risks associated with the
microenvironment and the gaming industry as described below, given the Group's current capital structure, could
potentially adversely affect the Group's future plans.
The potential magnitude of the effects of the global energy crisis as well as the operational risks described above
are constantly being assessed. Based on this evaluation and current cash position, substantial uncertainties
remain in relation to future flows and assessments of the possibility of a smooth continuation of the activity (going
concern).
Taking into consideration all the above, the Management has prepared a detailed business plan with expected
cash flows until April 2023, based on which, the above-mentioned magnitude is being considered and carefully
assessed. In any case, as described above, the Group maintains ability for cash upstreaming from the US to the
Parent to serve additional cash needs up to a substantial degree.
In conclusion, taking into consideration the Expected Cash Flows’ Plan and all available information of the
foreseeable future, the Management estimates that the Group has ensured its going concern.
In view of the above, the Financial Statements of the Group were prepared on the basis of the going concern
principle.
2.1.2 Statement of compliance
These financial statements for the period ended December 31, 2021 have been prepared in accordance with
International Financial Reporting Standards (I.F.R.S.), including the International Accounting Standards (IAS)
and Interpretations issued by International Financial Reporting Interpretations Committee (IFRIC), that have
been endorsed by the European Union as of December 31, 2021.
2.1.3 Financial Statements
INTRALOT keeps its accounting books and records and prepares its financial statements in accordance with the
International Financial Reporting Standards (IFRS), Law 4308/2014 chap. 2, 3 & 4 and current tax regulations
and issues its financial statements in accordance with the International Financial Reporting Standards (IFRS).
INTRALOT’s Greek subsidiaries keep their accounting books and records and prepare their financial statements
in accordance with GAS (L.4308/2014), the International Financial Reporting Standards (IFRS) and current tax
regulations. INTRALOT’s foreign subsidiaries keep their accounting books and records and prepare their financial
statements in accordance with the applicable laws and regulations in their respective countries. For the purpose
of the consolidated financial statements, Group entities’ financial statements are adjusted and prepared in relation
to the requirements of the International Financial Reporting Standards (IFRS).
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
161
Differences that may occur between the items in the Financial Statements and of the corresponding items in the
notes are due to rounding.
2.1.4 Changes in accounting policies
For the preparation of the financial statements of period ended December 31, 2021, the accounting policies
adopted are consistent with those followed in the preparation of the most recent annual financial statements
(December 31, 2020), except for the below mentioned adoption of new standards and interpretations applicable
for fiscal periods beginning at January 1, 2021.
Standards and Interpretations compulsory for the fiscal year 2021
New standards, amendments of published standards and interpretations mandatory for accounting periods
beginning on 1st January 2021. The Group’s assessment of the impact of these new and amended standards and
interpretations is set out below.
IFRS 16 (Amendment) ‘Covid-19-Related Rent Concessions’
The amendment provides lessees (but not lessors) with relief in the form of an optional exemption from assessing
whether a rent concession related to COVID-19 is a lease modification. Lessees can elect to account for rent
concessions in the same way as they would for changes which are not considered lease modifications.
The adoption of the above amendment did not have a significant impact on the Group's financial statements.
IFRS 4 (Amendment) ‘Extension of the Temporary Exemption from Applying IFRS 9’
The amendment changes the fixed expiry date for the temporary exemption in IFRS 4 ‘Insurance Contracts’ from
applying IFRS 9 ‘Financial Instruments’, so that entities would be required to apply IFRS 9 for annual periods
beginning on or after 1 January 2023. This amendment did not affect Group financial statements.
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments) ‘Interest rate benchmark reform – Phase
2’
The amendments complement those issued in 2019 and focus on the effects on financial statements when a
company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform.
More specifically, the amendments relate to how a company will account for changes in the contractual cash flows
of financial instruments, how it will account for the change in its hedging relationships and the information it
should disclose. These amendments do not affect Group financial statements significantly.
IAS 19 (Employee Benefits) – “Attributing Benefits to Periods of Service”
In May 2021, the International Financial Reporting Interpretations Committee ("the Committee") issued the final
agenda decision under the title "Attributing Benefits to Periods of Service" (IAS 19), which includes explanatory
material regarding the way of distribution of benefits in periods of service following a specific defined benefit plan
proportionate to that defined in Article 8 of Law 3198/1955 regarding provision of compensation due to retirement
(the "Labor Law Defined Benefit Plan"). The Group has applied this amendment as of 31/12/2021. The impact on
the annual financial statements of the Group and the Entity for the year ending December 31, 2021 is described
in the Note 2.26.
Standards and Interpretations compulsory after December 31, 2021
The following new standards, amendments and IFRICs have been published but are in effect for the annual fiscal
period beginning the 1st of January 2022, but their application has not started yet or they have not been adopted
by the European Union and have not been adopted from the Group earlier.
IFRS 17 ‘Insurance contracts’ and Amendments to IFRS 17
effective for annual periods beginning on or after 1 January 2023
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
162
IFRS 17 has been issued in May 2017 and, along with the Amendments to IFRS 17 issued in June 2020, supersedes
IFRS 4. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance
contracts within the scope of the Standard and its objective is to ensure that an entity provides relevant
information that faithfully represents those contracts. The new standard solves the comparison problems created
by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner. Insurance obligations
will be accounted for using current values instead of historical cost. This amendment does not affect Group
financial statements.
IAS 16 (Amendment) ‘Property, Plant and Equipment – Proceeds before Intended Use’
effective for annual periods beginning on or after 1 January 2022
The amendment prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from
selling items produced while the entity is preparing the asset for its intended use. It also requires entities to
separately disclose the amounts of proceeds and costs relating to such items produced that are not an output of
the entity’s ordinary activities. The adoption of the above amendment did not have a significant impact on the
Group's financial statements.
IAS 37 (Amendment) ‘Onerous Contracts – Cost of Fulfilling a Contract’
Effective for annual periods beginning on or after 1 January 2022
The amendment clarifies that ‘costs to fulfil a contract’ comprise the incremental costs of fulfilling that contract
and an allocation of other costs that relate directly to fulfilling contracts. The amendment also clarifies that, before
a separate provision for an onerous contract is established, an entity recognizes any impairment loss that has
occurred on assets used in fulfilling the contract, rather than on assets dedicated to that contract.
The Group will examine the potential impact of this amendment in its financial statements.
IFRS 3 (Amendment) ‘Reference to the Conceptual Framework’
effective for annual periods beginning on or after 1 January 2022
The amendment updated the standard to refer to the 2018 Conceptual Framework for Financial Reporting, in
order to determine what constitutes an asset or a liability in a business combination. In addition, an exception
was added for some types of liabilities and contingent liabilities acquired in a business combination. Finally, it is
clarified that the acquirer should not recognize contingent assets, as defined in IAS 37, at the acquisition date.
The Group will examine the potential impact of this amendment in its financial statements.
IAS 1 (Amendment) ‘Classification of liabilities as current or non-current’
effective for annual periods beginning on or after 1 January 2023
The amendment clarifies that liabilities are classified as either current or non-current depending on the rights
that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events
after the reporting date. The amendment also clarifies what IAS 1 means when it refers to the ‘settlement’ of a
liability. The Group will assess the impact of the amendment on its financial statements. These amendments have
not yet been endorsed by the European Union.
IAS 1 (Amendments) ‘Presentation of Financial Statements’ and IFRS Practice Statement 2
‘Disclosure of Accounting policies’
effective for annual periods beginning on or after 1 January 2023
The amendments require companies to disclose their material accounting policy information and provide guidance
on how to apply the concept of materiality to accounting policy disclosures. The Group will assess the impact of
the amendment on its financial statements.
IAS 8 (Amendments) ‘Accounting policies, Changes in Accounting Estimates and Errors: Definition of
Accounting Estimates’
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
163
effective for annual periods beginning on or after 1 January 2023
The amendments clarify how companies should distinguish changes in accounting policies from changes in
accounting estimates.
The Group will assess the impact of the amendment on its financial statements.
IΑS 12 (Amendments) ‘Deferred tax related to Assets and Liabilities arising from a Single Transaction’
effective for annual periods beginning on or after 1 January 2023
The amendments require companies to recognize deferred tax on transactions that, on initial recognition, give
rise to equal amounts of taxable and deductible temporary differences. This will typically apply to transactions
such as leases for the lessee and decommissioning obligations. The Group will assess the impact of the
amendment on its financial statements. These amendments have not yet been endorsed by the European Union.
IFRS 17 (Amendment) ‘Initial Application of IFRS 17 and IFRS 9 – Comparative Information’
effective for annual periods beginning on or after 1 January 2023
The amendment is a transition option relating to comparative information about financial assets presented on
initial application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting
mismatches between financial assets and insurance contract liabilities, and therefore improve the usefulness of
comparative information for users of financial statements. This amendment does not affect Group financial
statements. This amendment has not yet been endorsed by the European Union.
Annual Improvements to IFRS Standards 2018–2020
Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International
Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples
accompanying IFRS 16 Leases. The Group will examine the impact of the above on its financial statements.
2.1.5 Basis of Consolidation
The consolidated financial statements comprise the financial statements of INTRALOT S.A. and its subsidiaries as
at the end of each reporting period. The financial statements of the subsidiaries are prepared for the same
reporting period as the parent company, using consistent accounting policies.
Adjustments are made to bring in line any dissimilar accounting policies that may have existed. All intercompany
balances and transactions, including unrealized profits arising from intra-group transactions, have been
eliminated in full. Unrealized losses are eliminated unless costs cannot be recovered.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. Specifically, the Group
controls an investee if and only if the Group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities
of the investee)
• Exposure, or rights, to variable returns from its involvement with the investee, and
• The ability to use its power over the investee to affect the amount of its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all
relevant facts and circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement with the other vote holders of the investee
• Rights arising from other contractual arrangements
• The Group’s voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
164
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated
statements of comprehensive income and financial position from the date the Group gains control until the date
the Group ceases to control the subsidiary.
Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for
as equity transactions (i.e. transactions with owners in their capacity as owners).
Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if
this results in the non-controlling interests having a deficit balance.
If the Group loses control over a subsidiary, it:
• derecognizes the assets (including goodwill) and liabilities of the subsidiary,
• derecognizes the carrying amount of any non-controlling interests in the former subsidiary (including any
components of other comprehensive income attributable to them),
• derecognizes the cumulative translation differences that have been recorded in equity,
• recognizes the fair value of the consideration received from the transaction,
• recognizes any investment retained in the former subsidiary at its fair value at the date when control is
lost,
• reclassifies to profit or loss, (or transfers directly to retained earnings if required in accordance with other
IFRSs), the amounts that have been recorded in the parent’s share of other comprehensive income,
• recognizes any resulting difference as a gain or loss in profit or loss.
Where there is a loss of control of a subsidiary, the consolidated financial statements include the results for the
part of the reporting year during which the Group has control.
2.1.6 Business combination and goodwill
a) Subsidiaries
Subsidiaries are entities that are controlled by the Group. Subsidiaries are consolidated using the acquisition
method according to IFRS 3. The cost of an acquisition is measured as the aggregate of the consideration
transferred measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree.
For each subsidiary acquired, the Group elects whether to measure the non-controlling interests in the acquiree
at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are
expensed as incurred and included to income statement.
At the acquisition date, the Group classifies or designates the identifiable assets acquired and liabilities assumed
on the basis of the contractual terms, economic conditions, its operating or accounting policies and other pertinent
conditions as they exist at the acquisition date.
In a business combination achieved in stages, the Group remeasures its previously held equity interest in the
acquiree at its acquisition-date fair value and recognizes the resulting gain or loss in profit or loss. In prior
reporting periods, the Group may have recognized changes in the value of its equity interest in the acquiree in
other comprehensive income (i.e. due to the fact that the investment has been classified as available for sale). If
so, the amount that was recognized in other comprehensive income shall be recognized on the same basis as
would be required if the Group had disposed directly of the previously held equity interest.
The Group recognizes any contingent consideration at the fair value, at the acquisition date. Subsequent changes
to the fair value of the contingent consideration which is deemed to be an asset or a liability will be recognized in
accordance with IFRS 9 either in income statement or as a change in other comprehensive income. If the
contingent consideration is not within the scope of IFRS 9, it is measured in accordance with the appropriate
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
165
IFRS. If the contingent consideration is classified as equity, it shall not be remeasured until it is finally settled
within equity.
Goodwill in a business acquisition is initially measured at cost being the excess of the consideration transferred,
the amount recognized for non-controlling interests and any previous interest held, over the net fair value of the
identifiable assets acquired and liabilities assumed of the acquiree. If the fair value of the net assets acquired is
in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all
of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts
to be recognized at the acquisition date. If the re-assessment still results in an excess of the fair value of net
assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss. Any
goodwill arising on the acquisition of a foreign subsidiary and any fair value adjustments to the carrying amounts
of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and
translated at the closing rate accordingly.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Based on IFRS
3 “Business combinations”, Goodwill is not amortized. For the purpose of impairment testing, goodwill acquired
in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units
that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree
are assigned to those units. Goodwill is reviewed for impairment, annually or more frequently if events or changes
in circumstances indicate that the carrying value may be impaired.
Impairment is determined by assessing the recoverable amount of the cash-generating unit, to which the goodwill
relates. Where recoverable amount of the cash-generating unit is less than the carrying amount, an impairment
loss is recognized.
Where goodwill forms part of a cash generating unit and part of the operation within that unit is disposed of, the
goodwill associated with the operation disposed of is included in the carrying amount of the operation when
determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured
on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit
retained.
Any impairment losses that have been recognized for goodwill, will not be reversed in future periods.
Investments in subsidiaries are stated in the individual statement of financial position of the Company at their
cost less any impairment in value.
b) Investment in associates and joint ventures
Associates are entities over which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control over
those policies.
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the
parties sharing control.
The considerations made in determining significant influence or joint control are similar to those necessary to
determine control over subsidiaries.
The Group’s investments in associates and joint ventures are accounted for using the equity method.
Under this method, investments in associates or joint ventures are carried in the statement of financial position
at cost plus post acquisition changes in the Group’s share of net assets of the associate or joint venture. Goodwill
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
166
relating to the associate or joint venture is included in the carrying amount of the investment and is neither
amortized nor individually tested for impairment.
The income statement reflects the Group’s share of the post-acquisition associate’s or joint venture’s results after
taxes and non-controlling interests of the associate’s or joint venture’s subsidiaries. Any change in other
comprehensive income of those investees is presented as part of the Group’s other comprehensive income. Also,
the Group’s share of the changes in associates’ or joint ventures’ equity is directly recognized to the consolidated
statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and
the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
If an associate or joint venture uses accounting policies other than those of the Group for similar transactions
and events in similar circumstances, adjustments are made to the associate’s or joint venture’s financial
statements so as to apply the equity method.
The financial statements of associates or joint ventures are prepared for the same reporting period as the parent
company.
If the Group’s share of losses of an associate or joint venture equals or exceeds its interest in the associate or
joint venture, the Group discontinues recognizing its share of further losses, unless it has incurred legal or
constructive obligations or made payments on behalf of the associate or joint venture.
After application of the equity method, the Group applies the requirements of the relative IFRSs to determine
whether it is necessary to recognize any additional impairment loss with respect to its net investment in the
associate or joint venture. The Group incurs impairment test at the end of each reporting period comparing the
recoverable amount of the investment in associate or joint venture to its carrying value and recognizes the
difference in the income statement of the period.
The Group discontinues the use of the equity method from the date when it ceases to have significant influence
over an associate or joint control over a joint venture and accounts for the investment in accordance with IFRS 9
measuring the investment at fair value. Any difference between the carrying amount and the fair value of the
investment in associate or joint venture is recognized in the income statement of the period.
Investments in associates or joint venture are stated in the statement of financial position of the Company at
their cost less any impairment in value.
2.1.7 Foreign Currency Translation
The functional and presentation currency of INTRALOT S.A. and its subsidiaries which are located in Greece is the
euro (€). The Group’s consolidated financial statements are presented in euros. For each entity the Group
determines the functional currency and items included in the financial statements of each entity are measured
using that functional currency.
a) Transactions and balances
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional
currency spot rates at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot
rates of exchange at the reporting date.
All resulting differences are taken to the consolidated income statement with the exception of differences on
foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are taken
directly to Other Comprehensive Income until the disposal of the net investment, at which time they are
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recognized in the consolidated income statement. Tax charges and credits attributable to exchange differences
on those borrowings are also dealt with in Other Comprehensive Income.
Exchange differences resulting from financial assets and liabilities (intragroup loans and long term non trade
receivables/payables for which settlement is neither planned nor likely to occur in the foreseeable future) that
has been classified as part of an entity’s net investment in a subsidiary with foreign operations, are recognized
in income statement in the separate financial statements of the entity or/and subsidiary. In the consolidated
financial statements, the above exchange differences are recognized in other comprehensive income and included
in the exchange differences reserve. When the settlement of the above financial assets and liabilities is planned
or likely to occur in the foreseeable future, cumulative exchange differences in reserves are reclassified in
consolidated income statement since the financial assets and liabilities cease to be part of an entity’s net
investment in a subsidiary with foreign operations. The same accounting treatment of reclassification applied on
the subsidiary disposal.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of initial transaction. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was determined. The gain or
loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of
gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain or loss
is recognized in other comprehensive income or profit or loss are also recognized in other comprehensive income
or profit or loss, respectively).
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying
amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign
operation and translated at the spot rate of exchange at the reporting date.
b) Group companies
The functional currency of the overseas subsidiaries is the currency of the country in which these subsidiaries are
located and operate. As at the reporting date, the assets and liabilities of these overseas subsidiaries are
translated into the presentation currency of INTRALOT S.A. at the rate of exchange ruling at the reporting date
and, their statements of comprehensive income are translated at the weighted average exchange rates for the
year. The resulting exchange differences arising on the retranslation are taken directly to a separate component
of Other Comprehensive Income. On disposal of a foreign entity, the deferred cumulative amount recognized in
Other Comprehensive Income relating to that particular foreign operation shall be transferred to the income
statement.
2.1.8 Tangible assets
Tangible assets are stated at cost less accumulated depreciation and any impairment in value. Such cost includes
the cost of replacing the tangible assets and borrowing costs for long-term construction assets if the recognition
criteria are met.
Depreciation is calculated on a straight-line basis over the useful life of the asset as follows:
• Buildings (owned)
20 to 30 years
• Installations on third party property
Over the duration of the lease but not less
than 5% per annum
• Installations and Equipment
5 to 15 years
• Machinery and Equipment
4 to 10 years
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• Computer Hardware
20% to 30% per annum
• Transportation Equipment-Motor vehicles
7 years or 15% per annum
• Transportation Equipment-Trucks etc...
5 years or 20% per annum
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included
in the income statement in the year the item is derecognized. The assets’ residual values and useful lives are
reviewed at each financial year end, and adjusted prospectively, if appropriate.
As regards hardware and software leased under operating lease, these assets, in the group statement of financial
position are disclosed in acquisition cost values and are depreciated using the straight line method and according
to the lower period between the useful life and the contract life, taking also into account their residual value at
the end of the relative contract life as well as the collecting cost. In case of the respective contract’s renewal the
assets’ remaining net book value is depreciated according to the renewed contract life.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the
carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down
to their recoverable amount. The recoverable amount is the greater of fair value less costs of disposal and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value using an
after-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account.
If no such transactions can be identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples, quoted share prices for public traded companies or other available fair value
indicators. For an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the asset belongs. Impairment losses are recognized in the
income statement.
2.1.9 Borrowing costs
Since January 1, 2009, borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized
as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur.
Borrowing costs consist of interest and other costs that the Group incurs in connection with the borrowing of
funds.
2.1.10 Investment properties
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are stated at historical cost less provisions for depreciation and impairment. Investment
properties are derecognized either when they have been disposed of or when they are permanently withdrawn
from use and no future economic benefit is expected from their disposal. The difference between the net disposal
proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.
Transfers are made to (or from) investment property only when there is a change in use. For a transfer from
investment property to owner-occupied property, the deemed cost for subsequent accounting is the carrying
amount at the date of change in use. If owner-occupied property becomes an investment property, the Group
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accounts for such property in accordance with the policy stated under tangible assets up to the date of change in
use.
2.1.11 Intangible assets
Intangible assets acquired individually, are capitalized at cost and those acquired through a business combination
at fair values at the acquisition date. After initial recognition, intangibles are valued at cost less accumulated
amortization and any impairment in value. Useful lives of these intangibles are assessed to be either finite or
indefinite. Intangibles with finite useful lives are amortized as follows:
• Software platforms
• Central operating software
• Central Network software
• Licenses
• Rights
Over the duration of the
longest contract
• Other software
3 to 5 years
Central operating systems used for several projects are amortized over their expected useful life, up to 20 years.
The expected useful life is determined by reference to the longest duration of the relevant contracts and the
Intralot Group’s renewal track record in respect of such contract. Software that does not fall within the scope of
particular contracts, is amortized at the expected useful life.
Amortization of finite life intangibles is recognized as an expense in the income statement apportioned to the
related cost centers. Intangible assets with indefinite useful life are not amortized, but are tested for impairment
annually, either individually or at the cash generating unit level.
Intangibles, except development costs, internally generated are not capitalized and the costs are included in the
income statement in the year they are incurred.
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values
exceed the estimated recoverable amount, the intangible assets or cash-generating units are written down to
their recoverable amount. The recoverable amount is the greater of fair value less costs of disposal and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using an
after-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the intangible asset. In determining fair value less costs of disposal, recent market transactions are taken into
account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples, quoted share prices for public traded companies or other available fair value
indicators. For an intangible asset that does not generate largely independent cash inflows, the recoverable
amount is determined for the cash-generating unit to which the intangible asset belongs. Impairment losses are
recognized in the income statement.
Useful lives are also assessed annually and any revisions do not have retrospective application.
Gains or losses arising from derecognition of an intangible asset (that are measured as the difference between
the net disposal proceeds and the carrying amount of the asset) are recognized in the income statement when
the asset is derecognized.
Research and Development Costs
Research costs are expensed as incurred. Development expenditure incurred by individual project is capitalized
if, and only if, the Group can demonstrate all of the following:
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(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale
(b) its intention to complete the intangible asset and use or sell it
(c) its ability to use or sell the intangible asset
(d) how the intangible asset will generate probable future economic benefits
(e) the availability of adequate technical, financial and other resources to complete the development and to use
or sell the intangible asset
(f) its ability to measure reliably the expenditure attributable to the intangible asset during its development.
Following the initial recognition of the development expenditure, the cost model is applied requiring the asset to
be carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the
capitalized development expenditure begins when development is complete and the asset is available for use.
Any expenditure capitalized is amortized over the period of expected future sales from the related project.
The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use, or
more frequently when an indicator of impairment arises during the reporting year indicates that the carrying
value may not be recoverable.
2.1.12 Financial instruments
2.1.12.I Financial assets
(a) Recognition and measurement of financial assets
The Group recognizes a financial asset in its statement of financial position when, and only when, it becomes a
party to the contractual provisions of the instrument. The Group initially recognizes trade and other receivables
on the date of transaction. At initial recognition, under IFRS 9, all financial assets, except for certain trade
receivables, are recognized initially at their fair value plus transaction costs (except financial assets measured at
Fair Value through Profit or Loss, where transaction costs are expensed).
(b) Classification of non-derivative financial assets
i) Debt financial instruments
Debt financial instruments within the scope of IFRS 9 are classified according to: (i) the Group’s business model
for managing the assets, and (ii) whether the instruments’ contractual cash flows on specified dates represent
“solely payments of principal and interest” on the principal amount outstanding (the “SPPI criterion”), in the below
three categories:
• Debt instruments at amortized cost,
• Debt instruments at Fair Value through Other Comprehensive Income (“FVOCI”), and
• Debt instruments at Fair Value through Profit or Loss (“FVPL”).
The subsequent measurement of debt financial instruments depends on their classification as follows:
Debt instruments at amortized cost:
Include financial assets that are held within a business model with the objective to hold the financial assets in
order to collect contractual cash flows that meet the SPPI criterion. After initial measurement these debt
instruments are measured at amortized cost using the effective interest method. Gains or losses arising from
derecognition and impairment recognized in the income statement as finance costs or income, as well as the EIR
income through the amortization process. This category includes Group’s “Trade and other short-term
receivables”, “Other long-term receivables” and Bonds that meet the above criteria and included in “Other
financial assets”.
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Debt instruments at FVOCI:
Include financial assets that are held within a business model with the objective both to collect contractual cash
flows and to sell the financial assets, and meet the SPPI criterion. After initial measurement these debt
instruments are measured at fair value with unrealized gains or losses recognized as other comprehensive income
in revaluation reserve. When the assets are sold, derecognized or impaired the cumulative gains or losses are
transferred from the relative reserve to the income statement of the period. Interest income calculated using the
effective interest method, foreign exchange gains or losses and impairment are recognized in income statement.
Debt instruments at FVPL:
Include financial assets that are not classified to the two above categories because cash flow characteristics fail
the SPPI criterion or are not held within a business model whose objective is either to collect contractual cash
flows, or to both collect contractual cash flows and sell. After initial measurement these debt instruments are
measured at fair value with unrealized gains or losses, including any interest income, recognized in income
statement as financial income or expenses respectively.
ii) Equity financial instruments
Equity financial instruments within the scope of IFRS 9 are classified according to the Group’s intention to hold
or not for the foreseeable future and its election at initial recognition to classify at FVOCI or not, in the below two
categories:
• Equity instruments at FVOCI, and
• Equity instruments at FVPL.
The subsequent measurement of equity financial instruments depends on their classification as follows:
Equity instruments at FVOCI:
Include financial assets, which the Group intends to hold for the foreseeable future (“Not held for sale”) and which
the Group has irrevocably elected at initial recognition to classify at FVOCI. This election is made on an
investment-by-investment basis. After initial measurement these financial assets are measured at fair value with
unrealized gains or losses recognized as other comprehensive income in revaluation reserve. When the assets
are sold or derecognized the cumulative gains or losses are transferred from the relative reserve to retained
earnings (no recycling to income statement of the period). Equity instruments at FVOCI are not subject to an
impairment assessment under IFRS 9. Dividends are recognized as “finance income” in income statement, unless
the dividend clearly represents a recovery part of the cost of the investment.
Equity instruments at FVPL:
Include financial assets, which the Group has not irrevocably elected at initial recognition to classify at FVOCI.
After initial measurement these equity instruments are measured at fair value with unrealized gains or losses,
including any interest or dividend income, recognized in income statement as financial income or expenses
respectively.
(c) Derecognition of financial assets
The Group ceases recognizing a financial asset when and only when:
• the contractual rights to the cash flows from the financial asset expire or
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• the Group has transferred its contractual right to receive cash flows from an asset, or retains this right to
receive cash flows from an asset but has assumed a contractual obligation to pay the cash flows to a third
or more parties, or has transferred substantially all risks and rewards of the asset, or has neither transferred
nor retained substantially all the risks and rewards of the asset but has transferred the control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has assumed a contractual
obligation to pay the cash flows to a third or more parties, but in parallel has neither transferred nor retained
substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to
the extent of the Group’s continuing involvement in the asset.
When the Group’s continuing involvement takes the form of a guarantee over the transferred asset, the extent
of continuing involvement is measured at the lower of the carrying amount of the asset and the maximum amount
of consideration that the Group could be required to repay (“the guarantee amount”). When the entity’s continuing
involvement takes the form of a written or purchased option (or both) on the transferred asset (including cash-
settled options), the extent of the entity’s continuing involvement is the amount of the transferred asset that the
Group may repurchase. However, in case of a written put option on an asset that is measured at fair value, the
extent of the continuing involvement is limited to the lower of the fair value of the transferred asset and the
option exercise.
(d) Impairment of financial assets
IFRS 9 requires the Group to recognize loss allowance for Expected Credit Losses (“ECLs”) on:
• Debt instruments at amortized cost,
• Debt instruments at FVOCI, and
• Contract assets (as defined in IFRS 15).
ECLs are a probability-weighted estimate of credit losses and are based on the difference between the contractual
cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. The
shortfall is then discounted at an approximation to the asset’s original effective rate.
Under IFRS 9, loss allowances will be measured on either of the following bases:
- 12-month ECLs: these are ECLs that result from possible default events within the 12 months after the
reporting date; and
- Lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial
instrument.
Τhe Group applies the general model for recognizing expected credit losses rather than the simplified approach
based on the relevant exemption provided by IFRS 9 due to the wide dispersion of its activities both geographically
and due to the nature of the activities and the different characteristics of the counterparties (from small local
gambling agencies to large state lotteries and other gambling organizations).
This model follows a three-step approach to credit risk grading:
Stage 1: Performing financial assets without credit risk deterioration:
This stage includes financial assets whose credit risk has not deteriorated significantly since initial recognition or
which have a low credit risk at the reporting date. Expected credit losses are calculated and recognized for the
period of the next 12 months.
Stage 2: Performing financial assets with credit risk deterioration:
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This stage includes financial assets whose credit risk has deteriorated significantly since initial recognition (unless
they have a low credit risk at the reporting date) but there is no objective evidence of impairment. Expected
credit losses are calculated and recognized for the full life of the financial asset.
Stage 3: Non-performing financial assets:
This stage includes financial assets for which there is objective evidence of impairment at the reporting date.
Expected credit losses are calculated and recognized for the full life of the financial asset.
For “Trade and other short term receivables”, “Other long term receivables” and “Contract assets” (as defined in
IFRS 15), the Group calculates the ECLs according to the stage of each of them, examining them on a standalone
basis.
For other debt financial assets (i.e. debt instruments at FVOCI) that are determined to have low credit risk, ECL
is based on 12-months ECL approach. However, when there has been a significant increase in credit risk since
initial recognition, the allowance will be based on the lifetime ECL approach.
A key factor in recognizing expected credit losses over the life of a financial asset or over the next twelve months,
is the credit risk significant deterioration after initial recognition or not, compared to the corresponding credit risk
at the initial recognition of the financial asset.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition
and when estimating ECL, the Group considers reasonable and supportable information that is relevant and
available without undue cost or effort. This includes both quantitative and qualitative information and analysis,
based on the Group’s historical experience and informed credit assessment and including forward-looking
information. IFRS 9 makes a presumption that the credit risk on a financial asset has increased significantly since
initial recognition when contractual payments are more than 30 days past due. However, this presumption can
be rebut if there are reasonable and supportable information that is available without undue cost or effort, that
demonstrates that the credit risk has not increased significantly since initial recognition even though the
contractual payments are more than 30 days due.
The Group considers a financial asset to be in default when the borrower/debtor is unlikely to pay its credit
obligations to the Group in full, without recourse by the Group to actions such as realizing security, collateral,
mortgage, etc. Objective presumption for a credit-impaired financial asset, is the delay in collection over the days
set as a threshold for each of them (examining them on standalone basis). The range of days that have been set
as a threshold for the Group ranges between 30 and 210.
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group
is exposed to credit risk.
The three components of the calculation model of ECLs are as follows:
• Exposure at default ("EAD"): which represents the amount of the Group's exposure at the reporting date.
• Probability of default ("PD"): an estimate of the probability of default based on historical data,
assumptions and future estimates. The probability arises for each of the counterparties initially calculating
the DSOs (Days Sales Outstanding), which are then compared to the threshold set for that counterparty
to determine whether it is at default or not, and then weighted on the basis of its value weight and
exponential time factors.
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• Loss given default (“LGD”): which represents the estimate of the loss that will occur on the default date.
For the calculation of the loss due to default, any collaterals/securities held by the Group are taken into
account.
The Group's held collaterals/securities for trade receivables at the reporting date relate to cash, as well as to
mortgages on property.
At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities
at FVOCI are credit impaired. A financial asset is “credit impaired” when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a
financial asset is credit impaired includes the following observable data about the following events:
– significant financial difficulty of the borrower or issuer;
– a breach of contract, such as a default or past due event;
– the lender, for economic or contractual reasons relating to the borrower’s financial difficulty, having
granted to the borrower a concession that the lender would not otherwise consider;
– it is becoming probable that the borrower will enter bankruptcy or other financial reorganization;
– the disappearance of an active market for a financial asset because of financial difficulties; and
– the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of
the assets. For debt instrument at FVOCI, the loss allowance is charged to profit or loss and is recognized in Other
Comprehensive Income.
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is
no realistic prospect of recovery. This is generally the case when the Group determines that the debtor does not
have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the
write off. However, financial assets that are written off could still be subject to enforcement activities in order to
comply with the Group’s procedures for recovery of amounts due.
2.1.12.II Non-derivative financial liabilities
Financial liabilities include trade and other liabilities, bank overdrafts, loans and borrowings, as well as financial
guarantee contracts.
(a) Recognition and measurement of financial liabilities
The Group recognizes a financial liability in its statement of financial position when, and only when, it becomes a
party to the contractual provisions of the instrument. At initial recognition, financial liabilities are recognized at
fair value and in case of loans and borrowings, less directly attributable transaction costs.
(b) Classification of non-derivative financial liabilities
After the initial measurement, the financial liabilities are measured as follows:
Financial liabilities measured at amortized cost:
All interest-bearing loans and borrowings are initially measured at fair value less transaction cost directly
attributable to the issuance of the financial liability. Subsequently are measured at amortized cost using the
effective interest method. Amortized cost is calculated by taking into account any issue costs, and any discount
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or premium on settlement. Gains and losses are recognized in the income statement when the liabilities are
derecognized or impaired, as well as through the amortization process.
Financial liabilities at fair value through profit or loss:
Include financial liabilities held for trading, that are acquired or incurred principally for the purpose of selling or
repurchasing it in the near term, are part of a portfolio of identified financial instruments that are managed
together and for which there is evidence of a recent actual pattern of short-term profit-taking. Such liabilities are
measured at fair value and gains or losses from the measurement at fair value are recognized in the income
statement.
Financial guarantee contracts:
Include contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs
because a specified debtor fails to make payment when due in accordance with the original or modified terms of
a debt instrument. These contracts are recognized initially as a liability at fair value, adjusted for transaction
costs that are directly attributable to the issuance of the guarantee. Subsequently are measured at the higher of
the amount determined in accordance with IAS 37 and the amount initially recognized less, when appropriate,
cumulative amortization recognized in accordance with IFRS 15.
(c) Derecognition of financial liabilities
Financial liabilities are derecognized when the obligation is cancelled, extinguished or not exists anymore. In the
case that an existing liability is replaced by another from the same borrower but under substantially different
terms, or in case that there are substantial changes in terms of an existing liability, then the initial financial
liability is derecognized and a new liability recognized, and the resulting difference between balances is recognized
in the income statement.
2.1.12.III Offsetting of financial instruments
The financial instruments are offset when the Group, according to law, has this legal right and there is an intention
to settle them on a net basis (among them) or to realize the asset and settle the liability simultaneously.
2.1.12.IV Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments such as forward currency contracts, interest rate swaps, currency
swaps and other derivatives in order to hedge risks related to interest rates and foreign currency fluctuations.
Such derivative financial instruments are measured at fair value at each reporting date. Derivatives are carried
as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The
fair value of these derivatives is mainly measured by reference of the market value and is verified by the financial
institutions.
For the purpose of hedge accounting, derivative financial instruments are classified as:
• fair value hedge: hedging the exposure to changes in the fair value of a recognized asset or liability or
an unrecognized firm commitment
• cash flow hedge: hedging the exposure to variability in cash flows that is either attributable to particular
risk associated with a recognized asset or liability (such as all or some future interest payments on
variable rate debt) or a highly probable forecast transaction
• hedge of a net investment in a foreign operation.
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At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to
which the Group wishes to apply hedge accounting and the risk management objective and strategy for
undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or
transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in
the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash
flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting
changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have
been highly effective throughout the financial reporting periods for which they were designated.
Hedge accounting:
Fair value hedge:
Gains or losses from subsequent measurement of the hedging instrument at fair value are recognized in the
income statement as finance income/expenses (or other comprehensive income, if the hedging instrument hedges
an equity instrument for which the Group has elected to present changes in FVOCI).
Cash flow hedge:
The effective portion of the gain or loss on the hedging instrument is recognized directly as other comprehensive
income in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the income
statement as finance income/expenses.
Amounts recognized as other comprehensive income are transferred to the income statement in the same period
or periods during which the asset acquired or liability assumed affects profit or loss (such as in the periods when
the hedged financial income or financial expense is recognized or when a forecast sale occurs).
If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is
terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash
flow hedges is discontinued, the amount that has been accumulated in the hedging reserve and the cost of
hedging reserve remains in equity until, for a hedge of a transaction resulting in recognition of a non-financial
item, it is included in the non-financial item’s cost on its initial recognition or, for other cash flow hedges, it is
reclassified to income statement in the same period or periods as the hedged expected future cash flows affect
income statement.
If the forecast transaction or firm commitment is no longer expected to occur, the cumulative gain or loss
previously recognized in other comprehensive income are transferred to the income statement.
Hedge of a net investment in a foreign operation:
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for
as part of the net investment, are accounted for in a way similar to cash flow hedges. Gains or losses on the
hedging instrument relating to the effective portion of the hedge are recognized as other comprehensive income
while any gains or losses relating to the ineffective portion are recognized in the income statement. On disposal
of the foreign operation, the cumulative value of any such gains or losses recorded in other comprehensive
income is transferred to the income statement.
2.1.12.V Fair value of financial instruments
For investments that are actively traded in organized markets, fair values are determined in relation to the closing
traded values at the reporting date. For investments where there is no quoted market price, fair value is
determined by reference to the current market value of another item substantially similar, or is estimated based
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on the expected cash flows of the underlying net asset that consists the base of the investment or on acquisition
cost.
2.1.13 Inventories
Inventories are valued at the lower of cost and net realizable value. Cost is determined using the weighted
average method. Net realizable value is the estimated selling price in the ordinary course of business of the
Group, less the estimated costs necessary to make the sale. Provisions for impairment of the inventories value
are recorded when it is needed and recognized in the income statement.
2.1.14 Trade and other short-term receivables
Trade receivables are recognized and carried at original invoice amount less an allowance for doubtful provisions,
that are estimated according to IFRS 9.
When the inflow of cash or cash equivalents arising from goods sale or services rendering is deferred, the fair
value of the consideration may be less than the nominal amount of cash received or receivable. When the
arrangement effectively constitutes a finance transaction, the fair value of the consideration is determined by
discounting all future receipts using the prevailing interest rate for a similar instrument of an issuer with a similar
credit rating. The difference between the fair value and the nominal amount of the consideration is recognized as
interest revenue in the future periods, in accordance with IFRS 9.
2.1.15 Cash and Cash Equivalents
Cash and cash equivalents in the statement of financial position include cash at bank, short-term deposits and
cash in hand along with other high liquidity investments that are subject to an insignificant risk of changes in
value and have an original maturity of three months or less.
Bank overdrafts are included in the short-term bank loans in the statement of financial position. Also, cheques
payables that have not been paid at the reporting date are included in short-term liabilities.
For cash flow statement purposes, cash and cash equivalents include what is defined above, without the netting
of outstanding bank overdrafts.
2.1.16 Long Term Liabilities
All long-term liabilities are initially recognized at cost. Following initial recognition, liabilities that are denominated
in foreign currency are valued at the closing exchange rate of each reporting date. Any interest expenses are
recognized on an accruals basis.
2.1.17 Provisions and Contingent Liabilities
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some
or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized
as a separate asset but only when the reimbursement is virtually certain the expense relating to any provision is
presented in the income statement net of any reimbursement. Provisions are re-examined at the reporting date
and are adjusted so as to represent the present value of the expense that will be needed to settle the liability. If
the effect of the time value of money is material, provisions are determined by discounting the expected future
cash flows at an after-tax rate that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the
passage of time is recognized as a borrowing cost.
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Contingent liabilities are not recognized in the financial statements but are disclosed, except if the probability of
a potential outflow of funds embodying economic benefits is remote. Contingent assets are not recognized but
are disclosed when the probability of a cash inflow is probable.
Provisions are recognized on each financial statements date (and interim) based on the best and reliable estimate
for potential excess of cost (payments to winners) in games with predetermined odds, as this is provided by the
contracts between the company and the clients. The provision amount arising from this calculation is recognized
and booked as an expense.
2.1.18 Leases
Entity of the Group as lessee:
➢ Right-of-use assets
The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Unless the Group is reasonably certain to
obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are
depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use
assets are subject to impairment.
➢ Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include
the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties
for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease
payments that do not depend on an index or a rate are recognized as expense in the period on which the event
or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease
payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to
purchase the underlying asset.
➢ Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that
have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It
also applies the lease of low-value assets recognition exemption to leases that are considered of low value (i.e.,
below USD5.000). Lease payments on short-term leases and leases of low-value assets are recognized as expense
on a straight-line basis over the lease term.
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Entity of the Group as Lessor:
In cases of hardware and software leasing through operating lease, these assets are included in the Group’s
tangible assets. The lease income that occurs is recognized on a straight-line basis through the contract period.
When fixed assets are leased through financial leasing, the present value of the lease is recognized as a receivable.
The difference between the gross amount of the receivable and its present value is registered as a deferred
financial income. The income from the lease is recognized in the period’s income statement during the lease using
the net investment method, which represents a constant periodic return.
2.1.19 Share capital – Treasury shares
Share capital includes common and preference shares without voting right, which have been issued and being
traded. Share premium reserve includes the excess of the shares par value received consideration. Any costs directly
attributable to the issue of new shares are shown as a deduction in share premium reserve.
Treasury shares represent shares of the parent company held by the Group. Treasury shares are stated at cost and
are deducted from Equity. Upon acquisition, disposal, issuance or cancellation of treasury shares, no gain or loss is
recognized in the income statement. The consideration given or received and the related gains or losses from the
settlement are recognized directly in Equity.
2.1.20 Share Based Payments
IFRS 2 “Share-based Payment” requires an expense to be recognized where the Group buys goods and services
in exchange for shares (“equity-settled transactions”) or rights over shares (stock options), or in exchange for
other assets equivalent in value to a given number of shares or rights over shares (“cash-settled transactions”).
The Group provides stock options to executives and employees. The fair value of the executives and employees,
who receive these stock options, is recognized according to IFRS 2 as expenditure in the income statement, with
a respective increase of equity, during the period that these services are received and the options provided. The
estimation of the total amount of the stock options expenditure during the vesting period is based on the provided
stock options fair value at the grant date. The stock options fair value is measured using the proper valuation
model depending on the terms of each program, taking into account the proper data such as volatility, discounting
factor and dividend yield. Detailed information about the relative stock option programs of the Company included
in note 2.27.
Any outstanding stock options during the reporting period are taken into account for the calculation of the diluted
earnings per share.
2.1.21 Staff Retirement Indemnities
Staff retirement indemnities are measured at the present value of the defined benefit obligations at the reporting
date, through the recognition of the employees’ right to benefits based on years of service over their expected
working life. The above liabilities are calculated using financial and actuarial assumptions and are determined
based on an actuarial valuation method (Projected Unit Credit Method). The net pension costs for the period are
included in the accompanying statement of comprehensive income and consists of the present value of the
benefits earned during the year, interest cost on the benefit liability, past service cost and any other additional
pension costs that are recognized within staff costs in income statement, and the actuarial gains or losses that
are fully recognized when they occur, in other comprehensive income without future reclassification in income
statement. Total past service costs are recognized in income statement at the earlier of when the amendment
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occurs or when the Group recognizes the related restructuring or termination costs. The Company’s pension
benefit schemes are not funded.
During 2021, Group changed its accounting policy after International’s Financial Reporting Interpretations
Committee ("the Committee") issued the final agenda decision under the title "Attributing Benefits to Periods of
Service" (IAS 19), which includes explanatory material regarding the way of distribution of benefits in periods of
service following a specific defined benefit plan proportionate to that defined in Article 8 of Law 3198/1955
regarding provision of compensation due to retirement (the "Labor Law Defined Benefit Plan"). In particular, the
aforementioned final decision of the Committee's agenda provides explanatory information on the application of
the basic principles and regulations of IAS 19 in respect of the distribution of benefits in periods of service similar
to that of the Labor Law Defined Benefit Plan. This explanatory information differentiates the way in which the
basic principles and regulations of IAS 19 have been applied in Greece in the previous years. The implementation
of this final decision results in the distribution of benefits for the last 16 years until the date of retirement of
employees in accordance with the applicable legal framework. Based on the above, the Company applied the new
accounting policy with retroactive application in accordance with the provisions of IAS 8. In note 2.26 below
describes the impact of the change in accounting policy on the financial figures of the Company and the Group.
2.1.22 State Insurance Programs
The Company employees are covered by the main State Insurance Organization for the private sector (IKA) that
provides pension and medical benefits.
Each employee is obliged to contribute a percentage of the monthly salary to IKA while part of the total
contribution is covered by the Company. On retirement, IKA is responsible for the payment of pensions to
employees. Consequently, the Company does not have any legal or constructive obligation for the payment of
future benefits based on this scheme.
2.1.23 Revenue recognition
Revenues are recognized in the period they are realized and the related amounts can be reliably measured.
Revenues are measured at their fair value of the consideration received excluding discounts, consideration (bonus,
marketing incentives, etc.) payable to customers, sales tax and duties. The following specific recognition criteria
must also be met before revenue is recognized:
• Hardware and Software: This category includes the supply of hardware and software (gaming machines,
central computer systems, gaming software, communication systems etc.) to Lotteries so that they can
operate their on-line games. Revenue is recognized by the Company either (a) as a direct sale of hardware
and software, or (b) as operating lease, or (c) as finance lease for a predetermined time period according
to the contract with the customer.
In the first (a) case, the income from the sales of hardware and software (in a determined value) is
recognized when the significant risks and rewards arising from the ownership are transferred to the buyer.
In the second (b) case that consists income from operating lease, is defined per case either on straight-line
basis over the lease term or as a percentage on the Lottery Organization’s gross turnover received by the
player-customer (in this case income recognition occurs the moment that the player-customer places the
related consideration in order to participate in a game).
In the third (c) case that consists income from finance lease, it is defined using the net investment method
(the difference between the gross amount of the receivable and its present value is registered as a
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deferred financial income). This method represents a constant periodic return, recognizing the revenue
from the finance lease in the period’s income statement during the lease term.
• Installation, (technical) support and maintenance services: This category includes the rendering of
installation, technical support and maintenance services to Lotteries so that they can operate their on-line
games. These services are sold either bundled (multi-element arrangements) together with the sale of
technology products (hardware and software) to customers, or on their own in separate contracts with
the customers. The Group accounts for the sales technology products (hardware and software) and
installation, technical support and maintenance services as separate deliverables of bundled sales and
allocates consideration between these deliverables using the relative fair value approach. Revenue
recognition related to support services occurs by reference to the stage of completion of the transaction,
at the reporting date.
• Game management: The Group undertakes the provision of value-added services, such as the design,
organization and/ or management of games, advertising and sales promotion, establishment of sales
network, risk management (for fixed odds games) etc. to organizations internationally. Group revenues
mainly consist of a percentage of the turnover of the games to which the above services are provided, the
size of which is contractually determined based on the market size, the type of services rendered, the
duration of the contract and other parameters. Revenue recognition occurs the moment that the player-
customer pays the related consideration in order to participate in a game and equals to an amount calculated
as a percentage on the total amount received by the lottery games organization from the player-customer,
excluding consideration (bonus, marketing incentives, etc.) payable to customer or to customers of Group’s
customer, when the Group operates as an agent.
• Game operation: In this category, the Group has the full game operating license in a country. In the
case of operating the game each Group company undertakes the overall organization of the games
provided (installation of information systems, advertising and promotion, establishment of sales network,
receipt of the payments from players, payment of winnings to players, etc. Revenue recognition in this
category occurs the time that the relevant events or draws are taking place and is valued as the total
amount received from the player-customer in order to participate in a game, excluding consideration
(bonus, marketing incentives, etc.) payable to customer.
Especially in the case of VLT revenue measured as the “net drop” (total price minus winnings/payout)
received from the player-customer.
• Interest income: Interest income is recognized in the income statement using the effective interest rate
method.
• Dividends: Dividend income is recognized in the income statement when the Group’s right to receive the
payment is established.
• Rental income: Rental income arising from operating leases on is accounted for on a straight-line basis
during the lease term.
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2.1.24 Taxes
Income tax
Current and deferred income taxes are calculated based on the financial statements of each entity included in the
consolidated financial statements, based on the Greek tax laws or other tax frameworks within which the foreign
subsidiaries operate. Income tax is calculated based on the profit of each entity as adjusted on their tax returns,
for additional taxes arising from audits performed by the tax authorities and deferred taxes based on enacted or
substantially enacted tax rates. In some foreign countries, a tax is calculated according to a simplified framework,
sometimes referred to as a "simplified tax" which essentially replaces income tax to avoid the complex calculations
required. The Group classifies the charge for the simplified tax in the Income Statement on the "Taxes" line.
Deferred income tax is provided, using the liability method, on all temporary differences at the reporting date
between the tax base of assets and liabilities and their carrying amount.
Deferred income tax liabilities are recognized for all taxable temporary differences except:
• If the deferred income tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
• In respect of taxable temporary differences associated with investment in subsidiaries, associates and
interests in joint ventures, except where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not be reversed in the foreseeable future.
Deferred income tax assets are recognized for all deductible temporary differences and carry-forward unused tax
losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, or the unused tax losses can be utilized except if:
• the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and,
• in respect of deductible temporary differences associated with investment in subsidiaries, associates and
interests in joint ventures, deferred tax assets are only recognized to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilized.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that apply at the year when the asset is
expected to be realized or the liability is settled, based on tax rates that have been enacted or substantively
enacted at the reporting date.
Deferred income tax is not measured by the Group as regards the undistributed profits of subsidiaries, branches,
associates and joint ventures due to the elimination of intercompany profits, from relevant transactions, as they
are considered insignificant.
Income tax relating to items recognized directly in Other Comprehensive Income is recognized in Other
Comprehensive Income and not in the income statement.
Sales tax
Revenues, expenses and assets are recognized net of the amount of sales tax except:
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• Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority,
in which case the sales tax is recognized as part of the cost of acquisition of the asset or as part of the
expense item as applicable and
• Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, is included as part of receivables or payables in the
statement of financial position.
2.1.25 Government grants
Government grants are recognized where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with.
When the grant relates to an expense item, it is presented in the statement of financial position as deferred
income and is recognized as deduction in the relative expenses on a systematic basis over the periods that the
related costs, for which it is intended to compensate, are expensed.
When the grant relates to an asset, it is presented in the statement of financial position as deferred income and
is recognized as income in the profit or loss on a systematic basis over the expected useful life of the related
asset.
2.1.26 Earnings per share
The basic earnings per share (EPS) are calculated by dividing net profit by the weighted average number of ordinary
shares outstanding during each year, taking into account the average number of ordinary shares of the parent held
by the Group as treasury shares.
The diluted earnings per share are calculated by dividing the net profits attributable to the equity holders of the
parent company by the weighted average number of ordinary shares outstanding during the year (adjusted for the
effect of the average number of share option rights outstanding during the year).
2.1.27 EBITDA & EBIT
International Financial Reporting Standards (IFRS) do not define the content of the “EBITDA” & “EBIT”. The Group
taking into account the nature of its activities, defines “EBITDA” as “Operating Profit/(Loss) before tax” adjusted for
the figures “Profit/(loss) from equity method consolidations”, “Profit/(loss) on net monetary position”, “Exchange
Differences”, “Interest and similar income”, “Interest and similar expenses”, “Income/(expenses) from participations
and investments”, “Write-off and impairment loss of assets”, “Gain/(loss) from assets disposal”, “Reorganization
costs” and “Assets depreciation and amortization”. Also, the Group defines “EBIT” as “Operating Profit/(Loss) before
tax” adjusted for the figures “Profit/(loss) from equity method consolidations”, “Profit/(loss) on net monetary
position”, “Exchange Differences”, “Interest and similar income”, “Interest and similar expenses”,
“Income/(expenses) from participations and investments” ,“Write-off and impairment loss of assets” and
“Gain/(loss) from assets disposal”.
Reconciliation of operating profit before tax to EBIT and EBITDA
(continuing operations):
GROUP
1/1-31/12/2021
1/1-31/12/2020
Restated*
Operating profit/(loss) before tax
37.101
-91.870
Profit / (loss) to net monetary position
-595
-61
Profit / (loss) from equity method consolidations
-213
1.476
Exchange Differences
1.165
8.639
Interest and similar income
-47.381
-1.539
Interest and similar expenses
60.942
49.903
Income/(expenses) from participations and investments
-45.112
3.895
Gain/(loss) from assets disposal, impairment loss and write-off of assets
16.318
21.028
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EBIT
22.225
-8.529
Depreciation and amortization
71.046
67.967
Reorganization costs
17.170
6.754
EBITDA
110.440
66.191
Reconciliation of operating profit before tax to EBIT and EBITDA
(continuing operations):
COMPANY
1/1-31/12/2021
1/1-31/12/2020
Restated*
Operating profit/(loss) before tax
24.041
-40.495
Exchange Differences
-677
859
Interest and similar income
-5.765
-4.938
Interest and similar expenses
23.913
20.570
Income/(expenses) from participations and investments
-65.089
-1.939
Gain/(loss) from assets disposal, impairment loss and write-off of assets
8.097
12.116
EBIT
-15.480
-13.827
Depreciation and amortization
13.850
14.643
Reorganization costs
11.190
2.188
Income from recharging reorganization expenses to subsidiaries
-10.023
0
EBITDA
-464
3.003
*Restated due to change in accounting policy (note 2.1.4)
Project EBITDA of the Company
For the calculation of the project EBITDA of the Company, the direct costs of the projects are allocated directly to
the projects for which they are carried out. Payroll costs related to the Company's production segments are recorded
in "Cost of Sales" and are allocated to projects based on man effort at Company level. "Distribution Expenses" and
"Administration Expenses" are monitored per project and allocated to them based on man effort at Company level.
"Research and Development Expenses" are allocated to the projects in proportion to the revenues of each project
in the total revenue of the Company. Furthermore, for the calculation of the Company’s “Gross” results per project,
the relevant depreciation of tangible and intangible assets is accounted and the allocated operating “Distribution”,
“Administration” and "Research and Development” expenses are deducted. In cases where the hours of work are
redistributed from one project to another then the costs of disposal, administration and research and development
are calculated accordingly.
2.1.28 Significant accounting judgments, estimates and assumptions
The preparation of the consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the amounts of revenues, expenses, assets liabilities and disclosures of contingent liabilities
that included in the financial statements. On an ongoing basis, management evaluates its judgements, estimates
and assumptions that mainly refer to goodwill impairment, allowance for doubtful receivables – expected credit
losses, provision for staff retirement indemnities, provision for impairment of inventories value, impairment of
tangible and intangible assets as well as estimation of their useful lives, recognition of revenue and expenses,
pending legal cases, provision for income tax and recoverability of deferred tax assets. These judgements, estimates
and assumptions are based on historical experience and other factors including expectations of future events that
are considered reasonable under the circumstances.
The key judgements, estimates and assumptions concerning the future and other key sources of uncertainty at the
reporting date of the financial statements and have a significant risk of causing material adjustment to the carrying
amounts of assets and liabilities within the next financial year, are consistent with those applied and were valid at
the reporting date of the annual financial statements December 31, 2020.
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Goodwill, tangible and intangible assets impairment
Management tests goodwill for impairment annually (as at 31 December) or more frequently if events occur or
changes in circumstances indicate that the carrying value may be reduced in accordance with accounting policy
described in note 2.16. The recoverable amounts of cash generating units (CGU) have been determined based on
“value in use” calculations using appropriate estimates regarding future cash flows and discount rates. The
determination of value in use is obtained by the present value of estimated future cash flows, as expected to be
generated by each CGU (discounted cash flow method - DCF). The cash flows are derived from the most recent
approved by the administration budgets for the next three years and does not include any estimated future cash
inflows or outflows expected to arise from future restructurings or from improving or enhancing the asset's
performance, which is tested for impairment. The expected cash flow projections beyond the period covered by the
most recent budgets, estimated by extrapolating the projections based on the budgets using a steady or declining
growth rate for subsequent years, which does not exceed the long-term average growth rate for products, industries,
countries in which the Group operates, or for the market in which the asset is used. The Group makes estimates
and beyond the period of three years where has signed revenue contracts beyond three years as well as in cases
where management believes that based on market data and historical renewals track record of the Group, it is very
possible to renew relevant contracts beyond this period. Cash flow projections are based on reasonable and
supportable assumptions that represent management's best estimate of the range of economic conditions that will
exist over the remaining useful life of the asset, giving greater weight to external evidence. Management assesses
the reasonableness of the assumptions on which its current cash flow projections are based by examining the causes
of differences between past cash flow projections and actual cash flows. Management also ensures that the
assumptions on which its current cash flow projections are based are consistent with past actual outcomes, provided
that effects of subsequent events or circumstances, that did not exist when those actual cash flows were generated,
make this appropriate. Further details are provided in note 2.16.
The carrying values of tangible and intangible assets are reassessed for possible need for impairment whenever
events or circumstances indicate that the value reported on may not be recovered in accordance with the accounting
principle described in notes 2.1.8 and 2.1.11.
Income Tax Provision
The companies of the Group are subject to income taxes in numerous jurisdictions. The provision for income
taxes in accordance with IAS 12 "Income Taxes" refers to the amounts expected to be paid to the tax authorities
and includes provision for current income taxes and the provision for any additional taxes that may arise as a
result of the audit of the tax authorities. The provision for income tax of the Group for numerous transactions
require significant subjective judgment, making tax exact calculation uncertain during the ordinary course of
business of the Group. The estimate may differ from the final tax due to future changes in tax legislation or to
unforeseen effects of the final determination of the tax liability for each year from the tax authorities. Where the
final tax resulting from tax audits differ from the amounts that were initially assessed and recorded, such
differences will impact the income tax and deferred tax provisions in the period in which such determination of
tax differences occurred. Further details are provided in notes 2.12 and 2.32.B.
Deferred Tax Assets
Deferred tax assets and liabilities are recognized on temporary differences between the accounting basis and the
tax basis of assets and liabilities using the tax rates that have been enacted and are expected to apply in the
periods when the differences are expected to be eliminated. Deferred tax assets are recognized for the deductible
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temporary differences and tax losses carried forward to the extent that it is probable that there will be taxable
income available to be used against which the deductible temporary differences and the carry forward of unused
tax losses. The Group considers the existence of future taxable income and ongoing follow a conservative tax
planning strategies in assessing the recoverability of deferred tax assets. The determination of future taxable
income is made through the systematic process of budgeting, at the parent company level as well as at the level
of subsidiaries, which are mainly based on already signed long-term revenue contracts. Almost all of the Group's
revenue (parent and subsidiaries) derives from long-term contracts signed making the risk of discrepancies
between budgeted and actual revenue as low, something that applies to the costs that usually are in a proportion
relationship with the revenue of the related contracts. In any case there is a system of monitoring for the
verification of these budgets and conducting relevant adjustments, resulting in the safe keeping of any final
discrepancies at low levels. The accounting estimates related to deferred tax assets requires management to
make assumptions about the timing of future events, the probability of expected future taxable income and
available tax planning possibilities. Further details are provided in 2.12.
Allowance for doubtful receivables – expected credit losses
In determining the expected credit losses and the recognition of a relevant doubtful provision, the Group applies
the general model as described in paragraph 2.1.12.I.d of accounting policies. The information required to
determine whether there is a significant deterioration in credit risk after initial recognition and to determine the
stage to which each financial asset belongs and to calculate the provision for impairment is based on historical
and future data and includes significant estimates. Past experience and estimates for the future may not lead to
conclusions indicative of the actual amount of default when a relevant event will occur. Further details are
provided in notes 2.19 and 2.20.
Provision for staff retirement indemnities
Liabilities for retirement benefits are calculated using actuarial methods that require management to assess specific
parameters such as discount rates, future growth rates of employee wages, the future rate of employees’ retirement
and other factors such as the inflation rate. The Group's management estimates in the best possible way these
parameters on an annual basis, for the relevant actuarial study. Further details are provided in note 2.26.
Estimation of assets useful life
The Group reassesses at each year end and, when appropriate, prospectively adjusts useful lives of tangible and
intangible assets that were recognized either through acquisition or business combination. These estimates take
into account new data and current market conditions. Further details are provided in 2.1.8, 2.1.10, 2.1.11,
2.14,2.15 and 2.16.
Contingent liabilities
The Group reviews the status of each significant legal case on a periodic basis and assesses the potential risk,
based partly on the view of legal department. If the potential loss from any litigation and legal matters is
considered probable and the amount can be reliably estimated, the Group recognizes a liability for the estimated
loss. In order to determine the probability and whether the risk can be estimated reliably, a considerable degree
of judgment of management is required. When additional information becomes available, the Group reassesses
the potential liability related to pending litigation and legal proceedings, and estimates for the probability of an
unfavorable outcome and an assessment of potential loss may be revised. Such revisions in the estimates of the
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potential liability could have a material effect on the financial position and income statement of the Group. Further
details are provided in note 2.32. A.
Provision for impairment of inventories value
The Group recognizes inventory at the lower of cost and net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business, less estimated selling expenses. Provisions for impairment of
inventories are formed when necessary and recognized in the income statement. Further details are provided in
2.21.
Determination of lease term of contracts with renewal options
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered
by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option
to terminate the lease, if it is reasonably certain not to be exercised.
The Group has the option, under some of its leases to lease the assets for additional terms. The Group applies
judgement in evaluating whether it is reasonably certain to exercise the option to renew, considering all relevant
factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group
reassesses the lease term if there is a significant event or change in circumstances that is within its control and
affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in Group business strategy).
Consolidation of subsidiaries in which the Group holds less than a majority of voting right (de facto
control)
The Group estimates that on 31/12/2021 controls the subsidiary DC09 LLC, even though it holds less than 50%
of the voting rights, based on the conditions specified in IFRS 10. Specifically, the Group, based on its existing
rights and the fact that has signed agreements with other shareholders, estimates that has the ability to direct
the activities that significantly affect the returns of this entity, i.e. the “relevant activities”. Furthermore, holds
significant participations/investments, has rights to variable returns from its involvement with this entity and has
the ability to affect the level of these returns. The above conditions of IFRS 10 for the entity DC09 LLC, in which
the Group holds on 31/12/2021 32,21% of the voting rights, define the framework on the basis of which this
entity is consolidated.
Business combination
Group when acquiring a company performs the necessary estimates in determining the fair value and the useful life
of the acquired tangible and intangible assets. Future events could cause changes in the assumptions used in
determining fair value with a corresponding effect on the results and equity of the Group. Further details are provided
in 2.1.6.
Going Concern
The Management of the Group evaluates the going concern assumption based on the approved business plans that
cover a period of five years. Following this, it prepares Expected Cash Flows that cover a period of at least 12 months
since the financial statements reporting date.
In the present fiscal year, given what is mentioned in note 2.1.1, the Management of the Group has extended the
evaluation period of going concern in order to cover a period of 16 months since the financial statements reporting
date. The estimates and assumptions used to prepare the business plans and Expected Cash Flows are based on
historical data as well as on various factors that are considered reasonable given the circumstances, and are
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
188
reconsidered taking into account current and expected future market conditions. The preparation of business plans
also includes long-term assumptions for important economic factors that involve a significant use of Management
judgement.
2.2 INFORMATION PER SEGMENT
Intralot Group manages in 41 countries and states an expanded portfolio of contracts and gaming licenses. The
grouping of the Group companies is based on the geographical location in which they are established. The
financial results of the Group are presented in the following operating geographic segments based on the
geographic location of the Group companies:
European Union:
Greece, Malta, Cyprus, Poland, Luxembourg, Spain, Nederland, Romania, Bulgaria, Germany,
Croatia and Republic of Ireland.
Other Europe:
United Kingdom , Russia(until 2020) and Moldova.
America:
USA, Peru, Brazil, Argentina, Mexico, Jamaica, Chile, Colombia
Other Countries:
Australia, New Zealand, China, South Africa, Turkey, Taiwan and Morocco.
No operating segments have been added.
The following information is based on the internal financial reports provided to the manager responsible for taking
decisions who is the CEO. The performance of the segments is evaluated based on the sales and profit/(loss) before
tax. The Group applies the same accounting policies for the financial results of the above segments as those of the
consolidated financial statements. The transactions between segments are realized within the natural conditions
present in the Group with similar way to that with third parties. The intragroup transactions are eliminated in group
level and are included in the column “Eliminations”.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
189
1/1-31/12/2021
European Union
Other Europe
America
Other Countries
Eliminations
Total
(in million €)
Sales to third parties
137,80
0,00
215,09
61,11
0,00
414,00
Intragroup sales
43,29
0,00
0,41
0,07
-43,76
0,00
Total Sales
181,08
0,00
215,49
61,18
-43,76
414,00
Gross Profit/(loss)
12,83
0,00
58,52
51,23
-3,15
119,44
(Debit)/Credit interest & similar (expenses)/income
-33,56
0,00
-7,59
0,05
27,54
-13,56
Depreciation/Amortization
-26,34
0,00
-34,11
-11,33
0,74
-71,05
Profit/(loss) consolidated with equity method
-0,01
0,00
0,00
0,23
0,00
0,21
Write-off & impairment of assets
-11,70
0,00
-0,03
-4,28
-0,12
-16,13
Write-off & impairment of investments
-30,85
0,00
0,00
0,00
30,85
0,00
Doubtful provisions, write-off & impairment of receivables
-135,22
0,00
-0,55
-1,60
135,34
-2,02
Reversal of doubtful provisions & recovery of written off receivables
0,13
0,00
0,00
0,32
-0,13
0,32
Profit/(Loss) before tax and continuing operations
7,03
0,00
30,50
10,10
-10,54
37,10
Tax
2,96
0,00
-2,51
-4,26
-0,57
-4,38
Profit/(Loss) after tax from continuing operations
9,99
0,00
27,99
5,84
-11,11
32,72
Profit/(Loss) after tax from discontinued operations
-1,40
0,00
-7,83
0,00
0,00
-9,22
Profit/(Loss) after tax from total operations
8,59
0,00
20,16
5,84
-11,11
23,49
1/1-31/12/2020 Restated*
European Union
Other Europe
America
Other Countries
Eliminations
Total
(in million €)
Sales to third parties
125,20
0,00
172,81
46,88
0,00
344,88
Intragroup sales
59,69
0,00
0,38
0,14
-60,21
0,00
Total Sales
184,89
0,00
173,19
47,02
-60,21
344,88
Gross Profit/(loss)
30,47
0,00
26,96
34,73
-18,98
73,18
(Debit)/Credit interest & similar (expenses)/income
-42,45
0,00
-4,31
-1,48
-0,11
-48,36
Depreciation/Amortization
-35,58
0,00
-30,15
-4,12
1,88
-67,97
Profit/(loss) consolidated with equity method
-0,02
0,00
0,00
-1,46
0,00
-1,48
Write-off & impairment of assets
-21,15
0,00
-0,04
-0,06
0,00
-21,24
Write-off & impairment of investments
-32,66
0,00
0,00
0,00
28,51
-4,15
Doubtful provisions, write-off & impairment of receivables
-1,15
0,00
-0,34
-0,47
1,04
-0,92
Reversal of doubtful provisions & recovery of written off receivables
0,02
0,00
0,00
0,57
0,00
0,59
Profit/(Loss) before tax and continuing operations
-105,90
0,04
2,69
3,15
8,14
-91,87
Tax
0,77
0,03
-5,33
-2,81
0,00
-7,35
Profit/(Loss) after tax from continuing operations
-105,12
0,07
-2,64
0,34
8,14
-99,22
Profit/(Loss) after tax from discontinued operations
-48,25
0,00
-1,00
0,00
45,57
-3,68
Profit/(Loss) after tax from total operations
-153,38
0,07
-3,64
0,34
53,70
-102,90
*Restated due to change in accounting policy (note 2.1.4)
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
190
Sales per business activity
(continuing operations)
(in thousand €)
31/12/2021
31/12/2020
Change
Licensed operations
133.064
99.825
33,30%
Management contracts
47.454
33.580
41,32%
Technology and support services
233.480
211.479
10,40%
Total
413.998
344.885
20,04%
The sales of the above business activities are coming from all geographical segments
Sales per business activity
Sales per product type
(continuing operations)
31/12/2021
31/12/2020
Lottery games
61,18%
58,39%
Sports Betting
17,18%
15,60%
IT products & services
11,98%
17,23%
Racing
0,53%
0,61%
Video Lottery Terminals
9,24%
8,17%
Total
100%
100%
Revenue Net of Payout (GGR)
per business activity
(continuing operations)
(in thousand €)
31/12/2021
31/12/2020
Change
Licensed operations
54.370
40.300
34,91%
Management contracts
47.454
33.580
41,32%
Technology and support services
233.480
211.479
10,40%
Total
335.303
285.359
17,50%
Revenue Net Payout (GGR) per business activity
36,5%
15,9%
47,6%
31/12/2019
Licensed operations Management contracts Technology and support services
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
191
2.3 OTHER OPERATING INCOME
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Income from rents from third parties
17.565
14.650
27
Income from rents from subsidiaries
74
83
Proceeds from legal disputes
295
0
295
Income from uncollected winnings
0
0
Income from reversal of doubtful
provisions and proceeds for written off
receivables from third parties
324
593
Income from reversal of doubtful
provisions and proceeds for written off
receivables from subsidiaries
131
0
Income from recharging reorganization
expenses to subsidiaries
0
10.023
0
Other income
3.416
2.176
122
146
Other income from other related parties
0
26
0
0
Other income from subsidiaries
958
20
Total
21.600
17.445
11.630
249
2.4 STAFF COSTS
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
Restated *
31/12/2021
31/12/2020
Restated *
Salaries
69.138
73.944
17.445
20.875
Social security contributions
9.728
10.309
3.499
4.583
Staff retirement indemnities provision
(note 2.26)
1.596
607
1.417
466
Other staff costs
13.843
12.709
1.527
1.686
Total
94.306
97.569
23.887
27.610
Salaries & Social security contributions per cost center December 31, 2021
(continuing operations)
Group
Cost of
Sales
Selling
expenses
Administrative
costs
R&D costs
Total
Salaries
39.661
4.908
24.546
23
69.138
Social security contributions
5.975
877
2.872
4
9.728
Staff retir. & other costs
7.979
739
6.540
181
15.440
Total
53.615
6.524
33.958
208
94.306
Company
Cost of
Sales
Selling
expenses
Administrative
costs
R&D costs
Total
Salaries
8.934
2.741
5.747
23
17.445
Social security contributions
1.895
568
1.030
4
3.499
Staff retir. & other costs
1.681
402
679
181
2.944
Total
12.510
3.712
7.457
208
23.887
Salaries & Social security contributions per cost center December 31, 2020 Restated*
(continuing operations)
Group
Cost of
Sales
Selling
expenses
Administrative
costs
R&D costs
Total
Salaries
39.742
6.857
26.341
1.003
73.944
Social security contributions
5.565
1.319
3.210
215
10.309
Staff retir. & other costs
8.060
773
4.279
204
13.316
Total
53.368
8.949
33.830
1.422
97.569
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
192
Company
Cost of
Sales
Selling
expenses
Administrative
costs
R&D costs
Total
Salaries
7.843
4.462
7.567
1.003
20.875
Social security contributions
1.913
1.009
1.447
215
4.583
Staff retir. & other costs
1.207
296
445
204
2.151
Total
10.963
5.766
9.459
1.422
27.610
The number of employees of the Group at the end of 31/12/2021 amounted to 1.840 persons (Company/subsidiaries
1.803 and associates 37) and the Company's 427 persons. At the end of the 2020 period the number of employees
of the Group was 3.447 persons (Company/subsidiaries 2.046 and associates 1.401) and the Company's 595
persons.
2.5 DEPRECIATION AND AMORTIZATION
Depreciation and amortization recognized in the accompanying financial statements are analyzed as follows:
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Depreciation of tangible fixed assets (note 2.14)
35.120
36.798
5.358
4.935
Amortization of intangible assets (note 2.16)
35.925
31.169
8.492
9.708
Total
71.046
67.967
13.850
14.643
Depreciation and amortization per cost center 31/12/2021
(continuing operations)
Cost of Sales
Selling expenses
Administrative costs
R&D costs
Total
Group
53.188
2.010
14.740
1.108
71.046
Company
8.310
1.870
2.562
1.108
13.850
Depreciation and amortization per cost center 31/12/2020
(continuing operations)
Cost of Sales
Selling expenses
Administrative costs
R&D costs
Total
Group
57.001
2.132
7.663
1.171
67.967
Company
8.786
1.977
2.709
1.171
14.643
2.6 EXPENSES BY NATURE
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
Restated *
31/12/2021
31/12/2020
Restated *
Personnel Costs (note 2.4)
94.306
97.569
23.887
27.610
Depreciation & amortization (note 2.5)
71.046
67.967
13.850
14.643
Change in inventories
9.644
16.606
1.367
2.990
Winners payout, game taxes and agent
commissions
110.569
81.958
0
0
Consumables
4.768
3.743
0
0
Third party fees-benefits
34.905
28.780
10.273
4.517
Reorganization expenses
17.170
6.754
11.190
2.188
Other expenses
67.027
65.522
9.757
9.207
Total
409.433
368.899
70.324
61.155
*Restated due to change in accounting policy (note 2.1.4)
For the year ended December 31, 2021, operating expenses of the Group analysed above, include fees of statutory
auditors' networks other than statutory audit, amounted to €147 thous. for the issuance of Tax Compliance
Certificate in accordance with the provisions of art. 65A of L. 4174/2013 and fees for other services amounted to
€44 thous. including fees for other assurance services amounted to €8 thous.. The corresponding amounts for the
Company are €115 thous. and €8 thous..
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
193
2.7 INCOME / (EXPENSES) FROM PARTICIPATIONS AND INVESTMENTS
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Income from dividends
1.988
1.050
4.997
4.986
Gain from sale of participations and investments
2
43.754
101
66.935
0
Other income from participations and investments
886
0
0
0
Total income from participations and
investments
46.628
1.151
71.932
4.986
Loss from sale of participations and investments
-1.516
-892
-20
0
Loss from impairment / write-offs of participations
and investments
1
0
-4.153
-6.824
-3.047
Total expenses from participations and
investments
-1.516
-5.045
-6.843
-3.047
Net result from participations and
investments
45.112
-3.895
65.089
1.939
1
The Company as at 31/12/2021 includes a loss of €6.762 thousand from provision of impairment of the Company's investment in the
subsidiary Bilyoner Interactif Hizmelter As a result of the signing of a new fixed-term contract until 2029.
2
The Group 31/12/2021 includes a profit of €43.027 thousand relating to the exchange of 34,27% of the share capital of Intralot US
Securities B.V. (indirectly parent company of Intralot, Inc.) to holders of existing bonds maturing in 2024, with a nominal value of
€118.240 thousand. Respectively, the Company includes profit from subsidiary’s write off of debt amount to €55.000 thousand and profit
amount to €12 million for the sale of Group’s investment in Intralot de Peru SAC.
2.8 GAIN/(LOSSES) FROM ASSETS DISPOSAL, IMPAIRMENT LOSS & WRITE-OFF OF ASSETS
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Gain from disposal of tangible and intangible assets
37
185
12
14
Loss from disposal of tangible and intangible assets
-261
1
0
0
Loss from impairment and write-off of tangible and
intangible assets ¹
-16.131
-21.239
-8.129
-12.140
Gain from write-off lease liability
632
1.207
595
367
Loss from write-off property rights
-594
-1.182
-575
-357
Net result from tangible and intangible assets
-16.318
-21.028
-8.097
-12.116
¹ The Group on 31/12/2021 includes a loss of €4.097 thousand from the provision for impairment of recoverable amount of goodwill
from the acquisition of the subsidiary Bilyoner Interactif Hizmelter AS as a consequence of the Goodwill impairment test as a result of
the signing of a new fixed-term contract until 2029 and amount €11.110thous. from impairment of intangible assets of CGU “Sports
Betting” as analyzed in paragraph Intangible assets (except for Goodwill) impairment test.
2.9 OTHER OPERATING EXPENSES
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Impairment, write-off and provisions for doubtful
debt
2.025
918
578
143
Provisions for contractual fines-penalties
1.765
107
0
0
Other expenses
148
935
27
451
Total
3.939
1.960
605
594
Analysis of the account “Impairment, write-off and provisions for doubtful debt”:
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Provisions for doubtful receivables from
subsidiaries
0
0
0
132
Doubtful provisions from third party trade
receivables (3rd parties)
2.024
753
578
0
Write-off of trade receivables (3rd parties)
1
0
0
10
Write-off of receivables from associates
0
35
0
0
Write-off of receivables from other related parties
0
129
0
0
Total
2.025
918
578
143
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
194
2.10 INTEREST AND SIMILAR EXPENSES / INTEREST AND SIMILAR INCOME
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Interest Expense ¹
-44.155
-48.185
-20.704
-19.538
Financial Expense
2
-16.787
-1.685
-3.209
-1.032
Discounting
0
-33
0
0
Total Interest and similar expenses
-60.942
-49.903
-23.913
-20.570
Interest Income
1.793
1.428
5.765
4.933
Financial Income
3
45.533
0
0
0
Discounting
55
111
0
5
Total Interest and similar Income
47.381
1.539
5.765
4.938
Net Interest and similar Income / (Expenses)
-13.561
-48.364
-18.148
-15.632
¹ Including the amortized costs, expenses and fees of banking institutions in connection with the issue of bond and syndicated loans, as well as
repurchase of bond loans costs.
2
The financial expenses of the Group 31/12/2021 include expenses of €15,8 million related to the loan restructuring. The corresponding
amount of the Company amounts to €3,0 million.
3
The financial income of the Group 31/12/2021 includes a profit of €45,5 million related to the refinancing of bonds maturing in September
2021.
2.11 EXCHANGE DIFFERENCES
The Group reported in the Income Statement of 2021 loss from «Exchange differences» amount to €1.165
thousand (2020: profit €8.639 thousand) mainly from valuation of commercial and borrowing liabilities
(intercompany and non) in EUR that various subsidiaries abroad had as at 31/12/2021, with a different functional
currency than the Group, from valuation of cash balances in foreign currency other than the functional currency
of each entity, from valuation of trade receivables (from third parties and associates) mainly in USD that held by
the Company on 31/12/2021, as well as gain of €1.104 thousand from the restatement of revaluation reserve for
foreign exchange differences in the income statement pursuant to IFRS 10.
2.12 INCOME TAXES
GROUP (continuing operations)
31/12/2021
31/12/2020 Restated *
Current income tax
10.886
5.900
Deferred income tax
-4.888
-857
Tax audit differences and other taxes non-deductible
-1.613
2.303
Total income tax expense reported in income statement
4.385
7.346
The income tax expense for the Company and its Greek subsidiaries was calculated to 22% and 24% on the
taxable profit of the periods 1/1-31/12/2021 and 1/1-31/12/2020.
The deferred income tax for the Company and its Greek subsidiaries was calculated using the rate 22%, pursuant
to Law 4799/2021, for tax years since 2021.
COMPANY
31/12/2021
31/12/2020 Restated *
Current income tax
1.856
0
Deferred income tax
-7.038
-1.773
Tax audit differences and other taxes non-deductible
1.428
1.771
Total income tax expense reported in income statement
-3.754
-2
Income tax attributable to the Group's profit differs from the amount that would arise by applying the nominal tax
rate applicable at the domicile of the Parent Company, as follows:
(continuing operations)
GROUP
COMPANY
31/12/2021
31/12/2020
Restated *
31/12/2021
31/12/2020
Restated *
Profit before income taxes
37.101
-91.870
24.041
-40.659
Income taxes based on the statutory income tax rate of the
Parent 22% (2020: 24%)
8.162
-21.925
5.289
-9.758
Adjustments to income taxes related to:
Adjustments in previous periods provisions
-540
0
0
74
Tax effect of non-deductible tax expenses
1.661
8.974
-2.865
9.986
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
195
Tax effect of transferred losses, for which deferred tax asset
was not recognized
-21.093
23.502
0
0
Tax effect of non-taxable profits
-253
-4.822
-607
-228
Tax effect of foreign subsidiaries’ profits that are taxable at
different tax rates
21.715
-347
0
0
Other taxes non-deductible
460
510
1.669
0
Deferred tax effect due to tax rate change
-253
0
-337
0
Tax effect of losses for which net deferred tax asset was
recognized
-4.000
-338
-6.998
-1.847
Income tax of previous years after tax audit
-1.791
1.793
96
1.771
Provision for additional taxes from future tax audits
316
0
0
0
Income taxes reported in the income statement
4.385
7.346
-3.754
-2
GROUP
COMPANY
31/12/2021
31/12/2020
Restated *
31/12/2021
31/12/2020
Restated *
Net deferred tax asset at beginning of the year
-4.670
-5.596
-4.044
-5.883
(Debit)/Credit to income statement (continuing operations)
4.888
981
7.038
1.847
(Debit)/Credit to income statement (discontinued operations)
0
-23
0
0
Opening balance restructuring
-50
0
0
0
Exchange differences
3.522
195
0
0
Deferred tax on other comprehensive income
0
77
0
66
Transfer from income tax payable
0
0
0
0
Effect from impact from IAS 29
-140
-178
0
0
Non-consolidated subsidiary due to sale
0
-1
0
0
IAS 19 restatement
0
-124
0
-74
Net deferred tax asset at end of the fiscal year
3.553
-4.670
2.998
-4.044
The deferred tax asset and liability presented in the accompanying financial position are analyzed as
follows:
31/12/2021
GROUP
COMPANY
Assets
Liabilities
Assets
Liabilities
Tax losses carried forward
6.229
0
6.305
0
Inventories–intercompany profit
0
-159
0
0
Financial assets
1
-27
1
0
Long term receivables
23
0
0
0
Provisions
557
128
259
0
Tangible assets
-3.558
3.929
0
-203
Intangibles assets
0
-5.026
0
-4.520
Short term receivables
-600
39
-635
0
Accrued expenses
1.165
-4
1.144
0
Long term liabilities
173
-318
64
0
Short term liabilities
783
-27
549
0
Short term loans
247
-3
34
0
Total
5.021
-1.468
7.721
-4.723
1/1-31/12/2021
Income Statement
Deferred income tax (continuing operations)
GROUP
COMPANY
Prior years’ tax losses utilized
174
0
Subsidiaries’ tax losses carried forward
-4.567
-6.305
Accrued expenses
171
174
Tangible assets
-996
-670
Intangible assets
-719
-702
Financial assets
24
0
Short term receivables
-59
0
Long Term receivables
1
0
Inventories–impairment
145
0
Short term provisions
-11
0
Short term liabilities
34
275
Long term liabilities
914
190
Discontinued operations
-1
0
Deferred Tax (income) / expense
-4.890
-7.038
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
196
On 31/12/2021 the most significant Group’s subsidiaries (excluding Company) had accumulated tax losses
amounting to approximately €184,5 million and had recognized a deferred tax asset of €0,04 million (31/12/2020:
€0,1 million) attributable to tax losses amounting to €0,2 million. For the remaining tax losses amounting to
€184,3 million there was no deferred tax asset recognized on 31/12/2021 since the recognition criteria under IAS
12 as described in notes 2.1.24 and 2.1.28 were not met. Of the above total accumulated tax losses an amount
of €111,9 million can be transferred up to the periods 2022-2026, an amount of €6,7 million until the periods
2027-2046 and finally an amount of €65,9 million has no time limit. Also, on 31/12/2021 the Company recognized
a deferred tax asset on accumulated tax losses amounting to €34,2million.
31/12/2020 Restated *
GROUP
COMPANY
Assets
Liabilities
Assets
Liabilities
Tax losses carried forward
98
0
0
0
Inventories–intercompany profit
1
-17
0
0
Financial assets
8
-11
1
0
Long term receivables
27
0
0
0
Provisions
1.377
-640
918
-637
Tangible assets
-3.438
1.196
0
-872
Intangibles assets
1
-5.772
0
-5.222
Short term receivables
-584
0
-635
0
Accrued expenses
1.364
-29
1.317
0
Long term liabilities
607
99
228
0
Short term liabilities
1.040
-24
774
0
Short term loans
272
-246
85
0
Total
773
-5.443
2.688
-6.732
1/1-31/12/2020 Restated *
Income Statement
Deferred income tax (continuing operations)
GROUP
COMPANY
Prior years’ tax losses utilized
17
0
Subsidiaries’ tax losses carried forward
4.342
0
Accrued expenses
57
70
Tangible assets
-1.192
-649
Intangible assets
-4.741
-1.660
Financial assets
3
0
Short term receivables
416
12
Long Term receivables
-14
-7
Inventories–impairment
18
0
Short term provisions
-59
47
Short term liabilities
-21
202
Long term liabilities
340
214
Discontinued operations
-23
0
Deferred Tax (income) / expense
-857
-1.773
*Restated due to change in accounting policy (note 2.1.4)
2.13 EARNINGS / (LOSSES) PER SHARE
The calculation of basic and diluted earnings / (losses) per share is as follows:
Basic earnings / (losses) per share (EPS) are calculated by dividing net earnings / (losses) for the period
attributable to equity holders of the parent by the weighted average number of common shares outstanding
during the period, taking into account the average number of ordinary shares acquired by the Group as treasury
shares.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
197
(total operations)
GROUP
COMPANY
31/12/2021
31/12/2020
Restated*
31/12/2021
31/12/2020
Restated*
Net profit / (loss) attributable to equity holders of
the parent
17.461
-106.042
27.795
-40.493
Weighted average number of shares outstanding in the
beginning of the period
148.288.968
147.761.688
148.288.968
147.761.688
Less: Weighted average number of treasury shares from
period movements
Weighted average number of shares outstanding
during the period
148.288.968
147.761.688
148.288.968
147.761.688
Basic earnings / (losses) per share (EPS) (in euro)
0,1177 €
-0,7177 €
0,1874 €
-0,2740 €
Diluted earnings / (losses) per share are calculated by dividing net earnings / (losses) for the period
attributable to equity holders of the parent by the weighted average number of shares outstanding during the
period (adjusted for the effect of the average stock option plans outstanding during the period). During 2021
and 2020 the Group had no stock option plan in effect.
(total operations)
GROUP
COMPANY
31/12/2021
31/12/2020
Restated*
31/12/2021
31/12/2020
Restated*
Weighted average number of shares outstanding (for basic
EPS)
148.288.968
147.761.688
148.288.968
147.761.688
Effect of potential exercise of options (weighted average
number for the period)
0
0
0
0
Weighted average number of shares outstanding
(for diluted EPS)
148.288.968
147.761.688
148.288.968
147.761.688
Diluted earnings / (losses) per share (EPS) (in
euro)
0,1177 €
-0,7177 €
0,1874 €
-0,2740 €
*Restated due to change in accounting policy (note 2.1.4)
The difference between the weighted average number of shares outstanding and the number of shares
including those that would arise from a potential exercise of share options, is not significant.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
198
2.14 TANGIBLE FIXED ASSETS
GROUP
LAND
BUILDINGS AND
INSTALLATIONS
MACHINERY
AND
EQUIPMENT
TRANSPORT
EQUIPMENT
FURNITURE
AND
FIXTURES
ASSETS UNDER
CONSTRUCTION
OTHER
TANGIBLE
ASSETS
Total
January 1, 2021
Cost
3.030
35.166
321.599
4.273
86.253
12.934
1.597
464.852
Accumulated depreciation
-1.200
-16.067
-226.492
-2.944
-82.497
0
-1.320
-330.520
Net Book value January 1, 2021
1.830
19.100
95.107
1.328
3.756
12.934
277
134.332
COST
Additions of the period
0
4.401
3.832
723
195
7.014
57
16.222
Transfer of assets from (to) other category
0
68
8.764
0
41
-8.872
0
0
Transfer from (to) inventories and intangible assets
0
0
6.689
0
6
-3.807
0
2.888
Effect from the application of IAS 29
0
337
7.001
106
264
0
14
7.722
Disposal of subsidiaries/change in consolidation method
0
-255
-3.394
-139
-135
0
0
-3.923
Disposals
0
0
-520
-34
-4
0
0
-558
Impairment / write off
0
-20
-1.483
-61
-448
0
0
-2.012
Derecognition due to termination / expiration of lease contracts
0
-1.291
0
-683
0
0
0
-1.973
Exchange differences
0
1.237
18.352
-199
-196
528
13
19.735
ACCUMULATED DEPRECIATION
Depreciation of the period
0
-3.078
-30.249
-846
-959
0
-136
-35.269
Disposals
0
0
495
34
3
0
0
532
Impairment / write-off
0
0
801
7
443
0
0
1.251
Effect from the application of IAS 29
0
-158
-5.766
-81
-259
0
-6
-6.270
Exchange differences
0
-662
-13.841
119
187
0
-28
-14.224
Transfer from (to) other category
0
0
0
0
0
0
0
0
Transfer from (to) inventories and intangible assets
0
0
0
0
-6
0
0
-6
Derecognition due to termination / expiration of lease contracts
0
699
0
679
0
0
0
1.378
Disposal of subsidiaries/change in consolidation method
0
223
2.939
127
97
0
0
3.385
Net book value December 31 2021
1.830
20.600
88.727
1.081
2.984
7.796
192
123.210
Cost
3.030
39.644
360.841
3.986
85.975
7.796
1.681
502.952
Accumulated depreciation
-1.200
-19.044
-272.113
-2.905
-82.991
0
-1.489
-379.743
Net book value December 31 2021
1.830
20.600
88.727
1.081
2.984
7.796
192
123.210
The Group (continuing operations) recognized impairment losses/write-offs of tangible fixed assets amount to €761 thousand (discontinued operations €0 thousand) during the period 1/1-31/12/2021
that were recognized in the income statement (in “Gain / (Losses) from assets disposal, impairment losses & write-off of assets” - note 2.8). The largest portion, amounting to €526 thousand regards
impairment loss on machinery and equipment of Intralot SA which is no longer in use in US.
Tangible fixed assets depreciation amounts to €35.269 thousand includes related depreciation of discontinued operations amounts to €149 thousand.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
199
GROUP
LAND
BUILDINGS AND
INSTALLATIONS
MACHINERY
AND
EQUIPMENT
TRANSPORT
EQUIPMENT
FURNITURE
AND FIXTURES
ASSETS UNDER
CONSTRUCTION
OTHER
TANGIBLE
ASSETS
TOTAL
January 1, 2020
Cost
3.030
39.934
398.665
5.212
87.400
11.175
1.745
547.161
Accumulated depreciation
-1.200
-15.300
-274.687
-3.068
-82.793
0
-1.405
-378.453
Net Book value January 1, 2020
1.830
24.634
123.978
2.144
4.607
11.175
340
168.708
COST
Additions of the period
1.545
4.875
663
606
3.426
66
11.181
Transfer of assets from (to) other category
-57
2.149
98
-2.190
0
Transfer from (to) inventories and intangible assets
-5
5.791
-488
1.590
6.888
Effect from the application of IAS 29
128
4.754
93
166
10
5.151
Disposal of subsidiaries/change in consolidation
method
-46
-6.104
-263
-183
-40
-6.636
Disposals
-816
-166
-86
-1.068
Impairment / write off
-1.048
-56.752
-623
-146
-58.569
Derecognition due to termination / expiration of
lease contracts
-3.367
-865
-4.232
Exchange differences
-1.918
-30.963
-401
-637
-1.067
-38
-35.024
ACCUMULATED DEPRECIATION
Depreciation of the period
-4.370
-30.633
-1.138
-1.121
-112
-37.374
Disposals
274
103
84
461
Impairment / write-off
1.030
55.995
572
143
57.740
Effect from the application of IAS 29
-57
-3.515
-72
-159
-2
-3.805
Exchange differences
985
21.502
265
547
22
23.321
Transfer from (to) other category
51
-32
-19
0
Transfer from (to) inventories and intangible assets
-16
163
6
246
399
Derecognition due to termination / expiration of
lease contracts
1.590
756
2.346
Disposal of subsidiaries/change in consolidation
method
21
4.441
203
146
34
4.845
Net book value December 31, 2020
1.830
19.100
95.107
1.328
3.756
12.934
277
134.332
1.830
1.830
19.100
95.107
1.328
3.756
12.934
277
Cost
3.030
35.166
321.599
4.273
86.253
12.934
1.597
464.852
Accumulated depreciation
-1.200
-16.066
-226.492
-2.945
-82.497
0
-1.320
-330.520
Net Book value December 31, 2020
1.830
19.100
95.107
1.328
3.756
12.934
277
134.332
The Group (continuing operations) recognized impairment losses/write-offs of tangible fixed assets amount to €829 thousand (discontinued operations €602 thousand) during the period 1/1-31/12/2020
that were recognized in the income statement (in “Gain / (Losses) from assets disposal, impairment losses & write-off of assets” - note 2.8). The largest portion, amounting to €648 thousand regards
impairment loss on machinery and equipment due to COVID-19 pandemic in Brazil.
Tangible fixed assets depreciation amounts to €37.374 thousand includes related depreciation of discontinued operations amounts to €575 thousand.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
200
COMPANY
LAND
BUILDINGS AND
INSTALLATIONS
MACHINERY
AND
EQUIPMENT
TRANSPORT
EQUIPMENT
FURNITURE
AND
FIXTURES
ASSETS UNDER
CONSTRUCTION
OTHER
TANGIBLE
ASSETS
Total
January 1, 2021
Cost
3.030
14.921
16.840
1.597
78.355
0
0
114.742
Accumulated depreciation
-1.200
-5.194
-6.757
-941
-75.320
0
0
-89.410
Net Book value January 1, 2021
1.830
9.727
10.083
656
3.036
0
0
25.332
COST
Additions of the period
0
-20
16
165
137
0
0
298
Transfer from (to) inventories and intangible
assets
0
0
3.726
0
0
0
0
3.726
Disposals
0
0
-14
0
-4
0
0
-19
Impairment / write off
0
-20
-1.262
-54
-418
0
0
-1.754
Derecognition due to termination / expiration of
lease contracts
0
-941
0
-222
0
0
0
-1.163
ACCUMULATED DEPRECIATION
Depreciation of the period
0
-604
-3.837
-265
-652
0
0
-5.358
Disposals
0
0
12
0
3
0
0
15
Impairment / write-off
0
0
736
0
418
0
0
1.154
Derecognition due to termination / expiration of
lease contracts
0
368
0
220
0
0
0
588
Net book value December 31 2021
1.830
8.511
9.460
500
2.520
0
0
22.820
Cost
3.030
13.940
19.306
1.486
78.070
0
0
115.832
Accumulated depreciation
-1.200
-5.429
-9.846
-986
-75.550
0
0
-93.012
Net book value December 31 2021
1.830
8.511
9.460
500
2.520
0
0
22.820
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
201
COMPANY
LAND
BUILDINGS AND
INSTALLATIONS
MACHINERY
AND
EQUIPMENT
TRANSPORT
EQUIPMENT
FURNITURE
AND FIXTURES
TOTAL
January 1, 2020
Cost
3.030
15.400
15.402
1.340
78.318
113.490
Accumulated depreciation
-1.200
-4.698
-3.533
-816
-74.813
-85.060
Net Book value January 1, 2020
1.830
10.702
11.869
524
3.505
28.430
COST
Additions of the period
165
77
442
258
942
Transfer from (to) inventories and tangible assets
1.379
1.379
Disposals
-19
-13
-28
-60
Impairment / write-off
-192
-192
Derecognition due to termination / expiration of lease
contracts
-645
-172
-817
ACCUMULATED DEPRECIATION
Depreciation of the period
-835
-3.140
-256
-704
-4.935
Disposals
6
10
5
21
Impairment / write-off
-88
192
104
Derecognition due to termination / expiration of lease
contracts
339
121
460
Net Book value December 31, 2020
1.830
9.726
10.084
656
3.036
25.332
Cost
3.030
14.920
16.839
1.597
78.356
114.742
Accumulated depreciation
-1.200
-5.194
-6.755
-941
-75.320
-89.410
Net Book value December 31, 2020
1.830
9.726
10.084
656
3.036
25.332
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
202
Tangible Assets include Right-of-Use-Assets (RoU Assets) through Leases pursuant to IFRS 16:
GROUP
RIGHT OF USE ASSETS
BUILDINGS
AND
INSTALLATIONS
TRANSPORT
EQUIPMENT
MACHINERY
AND
EQUIPMENT
Total
Balance 01/01/2021
13.531
1.227
2.579
17.336
Additions
4.331
721
191
5.243
Termination/expiration of contracts
-592
-3
0
-595
Foreign Exchange differences
391
-72
112
430
Effect from IAS 29
178
0
9
188
Change of consolidation method / Sale of
subsidiary
-8
-13
0
-21
Depreciation
-2.620
-790
-895
-4.304
Write off of asset
-20
-54
0
-74
Transfers
0
0
0
0
Balance 31/12/2021
15.191
1.016
1.997
18.204
Below amounts recognized in Income Statement pursuant to IFRS 16:
GROUP
01/01 -
31/12/2021
(continuing operations)
Depreciation from right of use assets
4.304
Interest expenses from lease liabilities
567
Rental expenses from short-term contracts
2.976
Rental expenses from contracts of low value assets
75
Total amounts recognized in Income Statement
7.922
COMPANY
RIGHT OF USE ASSETS
BUILDINGS
AND
INSTALLATIONS
TRANSPORT
EQUIPMENT
MACHINERY
AND
EQUIPMENT
Total
Balance 1/1/2021
6.435
637
0
7.073
Additions
-20
165
32
177
Termination/expiration of contracts
-572
-2
0
-575
Write off of asset
-20
-54
0
-74
Depreciation
-392
-248
-5
-644
Balance 31/12/2021
5.431
498
27
5.956
2.15 INVESTMENT PROPERTIES
The Group did not hold investment properties as at 31/12/2021 and 31/12/2020.
The Company did not hold investment properties as at 31/12/2021 and 31/12/2020, apart from
some buildings leased to its subsidiaries and therefore are classified as tangible assets.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
203
2.16 INTANGIBLE ASSETS
GROUP
GOODWILL
SOFTWARE
DEVELOPMENT
COSTS (Internally
generated) ¹
OTHER
INDUSTRIAL
PROPERTY RIGHTS &
LICENSES
Total
January 1, 2021
Cost
4.981
76.897
217.360
23.633
213.043
535.913
Accumulated depreciation
0
-54.776
-128.002
-19.445
-131.676
-333.899
Net Book value January 1, 2021
4.981
22.121
89.358
4.188
81.367
202.014
COST
Additions of the period
0
811
3.870
5.588
50.474
60.744
Transfer of assets from (to) other category
0
-432
432
0
0
0
Transfer from (to) inventories and tangible assets
0
92
0
1.157
0
1.249
Effect from the application of IAS 29
0
1.437
0
12
0
1.450
Disposal of subsidiaries/change in consolidation method
0
-195
-918
0
0
-1.114
Disposals
0
-1
0
0
0
-1
Impairment / write off
-4.097
-18
-159
0
0
-4.274
Exchange differences
-582
420
-287
1.453
-9.121
-8.118
ACCUMULATED DEPRECIATION
Depreciation of the period
0
-4.989
-11.001
-1.414
-18.558
-35.962
Disposals
0
0
0
0
0
0
Impairment / write-off
0
-1.310
-9.601
0
-185
-11.096
Effect from the application of IAS 29
0
-1.369
0
0
0
-1.369
Exchange differences
0
-214
224
-1.332
1.086
-235
Transfer from (to) other category
0
0
0
0
0
0
Transfer from (to) inventories and tangible assets
0
0
0
0
0
0
Disposal of subsidiaries/change in consolidation method
0
161
856
0
0
1.018
Net book value December 31 2021
302
16.516
72.773
9.653
105.063
204.306
Cost
302
79.011
220.297
31.843
254.396
585.850
Accumulated depreciation
0
-62.496
-147.524
-22.190
-149.333
-381.543
Net book value December 31 2021
302
16.516
72.773
9.653
105.063
204.306
¹ The internally generated intangible assets of the Group include a material intangible asset with net book value of €70.6 thousand on 31/12/2021 (central operating system – LOTOS and relevant modules,
which supports the majority of the contracts of the Group). The remaining amortization period of the central operating system is up to 20 years whereas additions, upgrades and improvements to this asset
are constant.
The Group (continuing operations) recognized impairment losses/write-offs of intangible fixed assets amount to €15.370 thousand (discontinued operations €0 thousand) during the period 1/1-31/12/2021
which were recognized in the income statement (in “Gain / (Losses) from assets disposal, impairment losses & write-off of assets” - note 2.8). The largest portion amount to €11.110 thousand related to
the impairment loss on intangible assets of CGU “Sports Betting” as discussed below in the section Intangible Assets (except goodwill) impairment test.
The above amortization amount of the intangible assets of €35.962 thousand, includes €37 thousand related to amortization of discontinued operations.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
204
GROUP
GOODWILL
SOFTWARE
DEVELOPMENT
COSTS
(Internally
generated)
1
OTHER
INDUSTRIAL
PROPERTY
RIGHTS &
LICENSES
TOTAL
January 1, 2020
Cost
6.848
116.875
197.946
26.271
182.158
530.098
Accumulated amortization
0
-50.813
-101.353
-20.061
-115.005
-287.232
Net Book value January 1, 2020
6.848
66.062
96.593
6.210
67.153
242.866
COST
Additions of the period
4.436
8.592
957
3.337
17.322
Transfer of assets from (to) other category
-40.429
11.876
-2.294
30.847
0
Transfer from (to) inventories and tangible assets
-70
639
569
Effect from the application of IAS 29
179
10
189
Disposal of subsidiaries/change in consolidation method
-1.744
-300
-2.044
Disposals
-30
-3
-33
Impairment / write-off
-333
-274
-607
Exchange differences
-1.867
-1.987
-1.054
-1.648
-3.025
-9.581
ACCUMULATED DEPRECIATION
Amortization of the period
-5.626
-12.414
-850
-12.422
-31.312
Disposals
29
3
32
Impairment / write-off
-5.483
-13.070
-1.898
-20.451
Effect from the application of IAS 29
-122
-122
Exchange differences
1.404
872
1.526
35
3.837
Transfer of assets from (to) other category
4.415
-2.029
0
-2.386
0
Transfer from (to) inventories and/or tangible assets
-8
-121
-129
Disposal of subsidiaries/change in consolidation method
1.420
58
1.478
Net Book value December 31, 2020
4.981
22.121
89.358
4.187
81.367
202.014
Cost
4.981
76.897
217.360
23.632
213.043
535.913
Accumulated amortization
0
-54.776
-128.002
-19.445
-131.676
-333.899
Net Book value December 31, 2020
4.981
22.121
89.358
4.187
81.367
202.014
¹ The internally generated intangible assets of the Group include a material intangible asset with net book value of €85.792 thousand on 31/12/2020 (central operating system – LOTOS and relevant modules,
which supports the majority of the contracts of the Group). The remaining amortization period of the central operating system is up to 20 years whereas additions, upgrades and improvements to this asset
are constant.
The Group (continuing operations) recognized impairment losses/write-offs of intangible fixed assets amount to €21.058 thousand (discontinued operations €0 thousand) during the period 1/1-31/12/2020
which were recognized in the income statement (in “Gain / (Losses) from assets disposal, impairment losses & write-off of assets” - note 2.8). The largest portion amount to €21.022 thousand related to
the impairment loss on intangible assets of CGU “Sports Betting” as discussed below in the section Intangible Assets (except goodwill) impairment test.
The above amortization amount of the intangible assets of €31.312 thousand, includes €144 thousand related to amortization of discontinued operations.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
205
COMPANY
GOODWILL
SOFTWARE
DEVELOPMENT COSTS
(Internally generated) ¹
OTHER
INDUSTRIAL
PROPERTY RIGHTS
& LICENSES
Total
January 1, 2021
Cost
0
23.993
165.703
0
22.640
212.336
Accumulated depreciation
0
-23.199
-97.119
0
-21.240
-141.559
Net Book value January 1, 2021
0
793
68.584
0
1.400
70.778
COST
Additions of the period
0
112
1.493
0
1.430
3.035
ACCUMULATED DEPRECIATION
Depreciation of the period
0
-301
-7.150
0
-1.041
-8.492
Impairment / write-off
0
0
-7.415
0
-115
-7.530
Transfer from (to) other category
0
0
0
0
0
0
Net book value December 31 2021
0
605
55.512
0
1.674
57.791
Cost
0
24.105
167.196
0
24.070
215.371
Accumulated depreciation
0
-23.500
-111.684
0
-22.396
-157.580
Net book value December 31 2021
0
605
55.512
0
1.674
57.791
¹ The Company's internally generated intangible assets constitute a standalone asset (central operating system - LOTOS and related modules, which supports the majority of the Group's
contracts). The remaining depreciation period of the central operating system is 20 years given that additions, upgrades and improvements to this asset are constant.
COMPANY
SOFTWARE
DEVELOPMENT COSTS
(Internally generated)
1
INDUSTRIAL PROPERTY RIGHTS &
LICENSES
TOTAL
January 1, 2020
Cost
23.706
157.622
21.198
202.526
Accumulated amortization
-20.945
-79.143
-19.709
-119.797
Net Book value January 1, 2020
2.761
78.479
1.489
82.729
COST
Additions of the period
287
8.081
1.441
9.809
ACCUMULATED DEPRECIATION
Amortization of the period
-574
-7.946
-1.188
-9.708
Impairment/Write off
-10.030
-2.022
-12.052
Transfer of assets from (to) other category
-1.680
1.680
0
Net Book value December 31, 2020
794
68.584
1.400
70.778
Cost
23.993
165.703
22.639
212.335
Accumulated amortization
-23.199
-97.119
-21.239
-141.557
Net Book value December 31, 2020
794
68.584
1.400
70.778
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
206
Intangible assets (except for Goodwill) impairment test
Management tests Intangible assets (except for Goodwill) for impairment if events occur or changes in
conditions indicate that the carrying value may not be recoverable in accordance with accounting practice
described in note 2.1.11 “Intangible Assets”.
The Group, due to the recent changes in revenue contracts portfolio, as well as the spread of COVID-19
pandemic, made an impairment test on 31/12/2021 for all operating systems that are used to its operating
activities. The above intangible assets were classified for impairment testing purposes to the following cash
generating units (CGU): “Lottery”, “Sports Betting” and “VLT”. The recoverable amount of each CGU was
determined according to the calculations of Fair value less cost to sell since it was estimated that the value
in use is lower than fair value. The determination is obtained by applying of Income Approach –Relief from
Royalty method, in which the value of an intangible asset is determined by reference to the value of the
hypothetical royalty payments that would be saved through owning the asset, as compared with licensing the
intangible asset by a third party. The royalty rate that was applied was 13,5% and the discounting rate was
11,0%.
The test concluded that the carrying amount of the CGU “Sports Betting” exceeded the estimated recoverable
amount, and the Group recognized an impairment loss, due to insufficient future revenue, of €11.273
thousand in Income Statement (in “Gain / (Losses) from assets disposal, impairment losses & write-off of
assets” - note 2.8). The above impairment loss is presented in the operating segment “European Union” (note
2.2) The respective amount for Company amounted to €7.530 thousand.
Impairment loss per intangible assets category:
GROUP
COMPANY
Software
1.328
0
Development Costs (Internally generated)
9.760
7.415
Industrial Property Rights & Licenses
185
115
Total
11.273
7.530
Recoverable amount sensitivity analysis:
On 31/12/2021, the Group analyzed the sensitivity of the recoverable amounts in a reasonable and possible
change of some of the basic assumptions (such as the change of half (0,5) of a percentage point of royalty
rate and the change of the discount rates of half (0,5) percentage point). This analysis does not show a
situation in which the carrying amount of the Group's significant CGUs “Videolotto (VLT)” exceeds their
recoverable amount.
Regarding CGUs "Sports Betting" and "Lotteries", the above analysis show that a reduction of the royalty rate
by half (0,5) percentage point with a simultaneous increase of the discount rate by half (0,5) percentage
point would lead to an additional impairment loss of approximately €3.900 thousand. Conversely, an increase
in the percentage of royalty rate by half (0,5) percentage point with a simultaneous reduction of the discount
rate by half (0,5) percentage point would lead to a lower impairment loss of approximately €3.800 thousand.
Goodwill and Intangible assets with indefinite useful life impairment test
Management tests Goodwill for impairment annually (December 31) or more frequently if events occur or
changes in conditions indicate that the carrying value may not be recoverable in accordance with accounting
practice described in note 2.1.6 “Business Combination and Goodwill”.
The Group proceeded with a goodwill impairment test on 31/12/2021 and the basic assumptions used to
determine the recoverable amount are described below. The Group examined on 31/12/2021 the goodwill of
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
207
this subsidiary for impairment. The audit showed an impairment loss of €4.097 thousand, which was recorded
in the Income Statement (note 2.8).
The recoverable amounts of cash generating units have been determined based on value in use calculations
using appropriate estimates regarding future cash flows and discount rates.
Specifically, goodwill arising on consolidation of acquired subsidiaries and intangible assets with indefinite
useful life are allocated to the following cash generating units (CGU) by geographical area. Goodwill
impairment testing is performed on subsidiary level.
Carrying amount:
CGU
Goodwill
Intangible assets with indefinite useful life
31/12/2021
31/12/2020
31/12/2021
31/12/2020
European Union
0
0
0
0
America
302
344
34
25
Other countries
0
4.637
0
0
Total
302
4.981
34
25
Νet decrease in goodwill during the nine months of 2021 by €4.679 thousand due to provision impairment amount to €4.097 thousand
as mentioned above, as well as amount of €582 thousand due to foreign currency translation losses from goodwill valuations related to
foreign subsidiaries acquisitions, made by the Group in past periods, with functional currency other than Euro.
Key assumptions:
The recoverable amount of each CGU is determined according to the calculations of value in use. The
determination is obtained by the present value of estimated future cash flows expected to be generated by
each CGU (discounted cash flow method - DCF). The cash flows are derived from the most recent approved
by the management budgets for the next three years and do not include estimated future cash inflows or
outflows expected to arise from future restructurings or from improving or enhancing the asset's performance
which is tested for impairment. The expected cash flow projections beyond the period covered by the most
recent budgets is estimated by extrapolating the projections based on the budgets, using a steady or declining
growth rate for subsequent years, which does not exceed the long-term average growth rate for products,
industries, countries in which the Group operates, or for the market in which the asset is used. The Group
makes estimates beyond the period of three years where it has signed revenue contracts beyond three years
as well as in cases where management believes that based on market data and renewals track record of the
Group, the renewal of the relevant contracts beyond the three year period is very possible. Cash flow
projections are based on reasonable and supportable assumptions that represent management's best
estimate of the range of economic conditions that will exist over the remaining useful life of the asset, giving
greater weight to external evidence. Management assesses the reasonableness of the assumptions underlying
the current cash flow projections by examining the causes of differences between past cash flow projections
and actual cash flows. Management also ensures that the assumptions on which its current cash flow
projections are based are consistent with past actual outcomes, provided that subsequent events or
circumstances that did not exist when those actual cash flows were generated make this appropriate.
The value in use for CGUs affected (has sensitivity) of the following key factors (assumptions):
• Sales
• Growth rate in perpetuity (Perpetual Growth Rates), and
• Discount rates
Sales:
Sales projections are derived from estimates of local management of various subsidiaries. These projections
are based on careful assessments of various factors, such as past performance, estimates of growth of the
local market, competition - if exists, possible changes in the institutional framework governing the gambling
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
208
market, the economic situation of the gambling industry and the market in general, new opportunities such
as lotteries privatizations, etc.
Sales growth rate:
CGU
2021
2020
European Union
n/a
n/a
America
20%-63,3%
20%-68,1%
Other countries
n/a
11%-63,3%
Growth rate in perpetuity
The factors taken into account for the calculation of the growth rate in perpetuity derive from external sources
and include among others, the level of maturity of each market, the existence of barriers to entry for
competitors, the economic situation of the market, existing competition and technology trends.
Growth rate in perpetuity:
CGU
2021
2020
European Union
n/a
n/a
America
10%
10%
Other countries
n/a
11%
Discount rates:
The discount rates represent the current market assessments of the risks personalized for each CGU, having
made the necessary adjustments for the time value of money and possible risks specific to any assets that
have not been included in the cash flow projections. The calculation of discount rates based on specific
conditions under which the Group and its operating segments operate and calculated through the weighted
average cost of capital method (WACC). The WACC takes into account both debt and equity. The cost of
equity derives from the expected return that Group investors have for their investment. The Cost of debt is
based on the interest rate of the loans that the Group must facilitate. The specific risk of each country is
incorporated by implementing individualized sensitivity factors «beta» (beta factors). The sensitivity factors
«beta» are evaluated annually based on published market data.
Discount rates:
CGU
2021
2020
European Union
n/a
n/a
America
32%
38%
Other countries
n/a
21,6%
Recoverable amount sensitivity analysis:
On 31/12/2021, the Group analyzed the sensitivity of the recoverable amounts in a reasonable and possible
change of some of the basic assumptions (such as the change of one (1,0) percentage point to the growth
rate in perpetuity and the change of the discount rates of one (1,0) percentage point). This analysis does not
show a situation in which the carrying amount of the Group's significant CGUs exceeds their recoverable
amount.
2.17 INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
GROUP INVESTMENT IN
ASSOCIATES AND JOINT
VENTURES
%
Participation
Country
31/12/2021
31/12/2020
LOTRICH INFORMATION Co LTD
40%
Taiwan
6.733
6.074
KARENIA ENTERPRISES COMPANY LTD
50%
Cyprus
6.696
6.713
Other
5
0
Total
13.434
12.786
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
209
GROUP INVESTMENT IN ASSOCIATES AND JOINT VENTURES
31/12/2021
31/12/2020
Opening Balance
12.786
37.305
Participation in net profit / (loss) of
associates and joint ventures
214
-634
Exchange differences
685
-735
Impairment /Reverse of impairment
0
-4.153
Dividends
-252
-2.762
Transfer to Assets held for sale
-16.167
Additions in kind
5
Other
-2
-70
Closing Balance
13.434
12.786
COMPANY INVESTMENT IN
ASSOCIATES AND JOINT
VENTURES
%
Participation
Country
31/12/2021
31/12/2020
Lotrich Information Co LTD
40%
Ταιβάν
5.131
5.131
Total
5.131
5.131
COMPANY INVESTMENT IN
SUBSIDIARIES
%
Participation
Country
31/12/2021
31/12/2020
ΙΝTRALOT HOLDINGS INTERNATIONAL LTD
100%
Cyprus
464
464
BETTING COMPANY S.A.
95%
Greece
139
139
INTELTEK INTERNET AS
100%
Turkey
1.020
266
BILYONER INTERAKTIF HIZMELTER AS
GROUP
50,01%
Turkey
3.990
10.751
INTRALOT GLOBAL SECURITIES B.V.
100%
Netherlands
50.961
50.961
INTRALOT GLOBAL HOLDINGS B.V.
99,98%
Netherlands
76.374
54.772
INTRALOT IBERIA HOLDINGS S.A.
100%
Spain
5.638
5.638
Other
116
116
Total
138.702
123.107
Grand Total
143.833
128.239
COMPANY INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT
VENTURES
31/12/2021
31/12/2020
Opening Balance
128.239
154.101
Provisions/ reversals of provisions for impairment of subsidiaries
-6.824
-3.047
Capitalization of receivables from subsidiaries
21.602
684
Transfer to Assets held for sale
0
-5.528
Return of subsidiaries’ capital
0
-17.971
Acquisition of additional percentage in an existing subsidiary
816
0
Closing Balance
143.833
128.239
2.18 OTHER FINANCIAL ASSETS
The other financial assets that have been classified by the Group as “equity instruments at fair value
through other comprehensive income” and as “debt instruments at amortized cost" are analyzed below:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Opening Balance
276
431
39
39
Purchases
Return of capital
Disposals
-99
Receipts
-13
-30
Fair value revaluation
-50
-95
41
1
Foreign exchange differences
-5
-31
Closing balance
109
276
80
39
Quoted securities
109
276
80
39
Unquoted securities
0
0
0
0
Total
109
276
80
39
Long-term Financial Assets
97
262
80
39
Short-term Financial Assets
13
14
0
0
Total
109
276
80
39
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
210
During 2021, the Group losses arising from the valuation at fair value of the above financial assets amount to
€50 thousand (2020: losses €95 thousand) are analyzed in losses amount to €50 thousand (2020: losses €112
thousand) reported in particular equity reserves (revaluation reserve) and in gain amount to €0 thousand
(2020: gain €17 thousand) reported in the income statement. Respectively for the Company, gain amount to
€42 thousand (2020: gain €0 thousand) are analyzed in gain amount to €42 thousand (2020: gain €0
thousand) that were reported in particular equity reserves (revaluation reserve).
For investments that are actively traded in organized financial markets, the fair value is determined by
reference to the closing price at the reporting date. For investments where there is no corresponding market
price, fair value is determined by reference to the current market value of another instrument that is
substantially the same or estimated based on expected cash flows of the net assets underlying the investment
or acquisition value.
2.19 OTHER LONG-TERM RECEIVABLES
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Receivables from related parties (note 2.31.E)
695
1.408
15
28
Minus: Provisions for doubtful receivables
0
-445
0
0
Guarantees
1.258
3.994
31
84
Other receivables
1.240
453
0
0
Minus: Provisions for doubtful receivables
0
0
0
0
Total
3.194
5.411
45
112
Reconciliation of changes in provisions for
impairment of long-term receivables
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Opening Balance
-445
-3.453
0
-24.203
Provisions for the period for receivables from third parties
0
0
Transfer from/to short term receivables
0
160
Transfer to investments in subsidiaries
24.043
Sale of subsidiary
444
2.824
Exchange differences
1
183
Closing Balance
0
-445
0
0
2.20 TRADE AND OTHER SHORT-TERM RECEIVABLES
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Trade receivables (third parties) ²
76.861
91.306
35.186
34.586
Minus: Doubtful provisions
-10.730
-9.526
-7.312
-6.734
Trade receivables from related entities and
other related parties (note 2.31.E)
9.834
7.931
28.770
63.124
Minus: Doubtful provisions
-5.037
-5.037
-5.259
-5.390
Total trade receivables
70.928
84.674
51.385
85.586
Other receivables (third parties) ²
7.952
11.340
4.837
5.108
Minus: Doubtful provisions
-1.465
-1.305
-778
-778
Other receivables from related entities and
other related parties (note 2.31.E)
6.786
5.838
26.831
12.966
Minus: Doubtful provisions
-1.060
-1.060
-1.060
-1.060
Pledged bank deposits ¹
8.378
5.295
4.657
1.774
Tax receivables
29.871
37.246
18.012
20.120
Prepaid expenses and other receivables
8.809
9.376
1.291
1.800
Total other receivables
59.271
66.730
53.790
39.930
Total
130.198
151.403
105.177
125.516
1 The Group on 31/12/2021 includes collateralized bank deposits as security coverage for banking facilities amounting €8.253 thousand
(31/12/2020: €4.929 thousand) and other collateralized bank deposits amount to €125 thousand (31/12/2020: €366 thousand). The Company
includes on 31/12/2021 collateralized bank deposits as security coverage for banking facilities amounting €4.536 thousand (31/12/2020: €1.650
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
211
thousand.), as well as other collateralized bank deposits as security coverage for banking facilities amounting €122 thousand (31/12/2020:
€124 thousand).
2 The account «Trade receivables (third parties)» and «Other receivables (third parties)» of the Company and the Group as at 31/12/2021
include a receivable from the “Hellenic Organization of Horse Racing S.A.” (ODIE) amount to €28,8 million (31/12/2020: €29,1 million) that was
overdue until November 2015 and had not been impaired. In November 2015, an agreement was signed between the Company and ODIE which
set the repayment of all of the above receivables of the Company. With this agreement ODIE granted the Company 2/3 of the rent which it will
receive from the lease of property of ODIE (Markopoulos facilities) to the company "Ippodromies SA ". The payment of the assigned lease to
the Company has already started from January 2016. The whole of this receivable is covered by collateral as disclosed in note 2.32.A."Contingent
liabilities" - "Litigation cases". We also note that the Company assesses the risk of non-collectability as minimum, given both the public character
of ODIE, and the reception of physical collateral (first mortgage and note of mortgage) on the above-mentioned property of ODIE. The record
of the above physical collateral, was made for the amount of €20,9 million against the real estate and the facilities of ODIE in Markopoulos, that
have a multiple fair value, making the collection of the claim as fully secured.
Pursuant to IFRS 9, for the determination of the expected credit losses and the recognition of relevant doubtful
provisions, the Group followed the general model as described in paragraph 2.1.12.I.d of accounting policies.
Subsequent changes in market conditions and the business model of the Group may affect the below
estimations.
On December 31, 2021 and 2020, the trade receivables and the doubtful provisions are as follows:
31/12/2021
GROUP
COMPANY
Trade
receivables
Doubtful
provisions
Trade
receivables
Doubtful
provisions
Not past due
16.264
0
1.664
0
Past due less than 30 days
24.953
-1.022
1.112
0
Past due 30-60 days
711
0
-200
0
Past due 60-90 days
118
-6
87
0
Past due 90-120 days
6
0
9.371
0
Past due more than 120 days¹
44.643
-14.740
51.922
-12.571
Total
86.695
-15.768
63.956
-12.571
70.928
51.385
31/12/2020
GROUP
COMPANY
Trade
receivables
Doubtful
provisions
Trade
receivables
Doubtful
provisions
Not past due
26.831
0
11.793
0
Past due less than 30 days
7.989
-4
413
0
Past due 30-60 days
3.138
0
656
0
Past due 60-90 days
3.712
-195
432
0
Past due 90-120 days
1.880
-25
102
0
Past due more than 120 days¹
55.687
-14.340
84.314
-12.124
Total
99.237
-14.563
97.710
-12.124
84.674
85.586
¹ The Company and the Group are subject to a commercial claim of €24,9 million by the Hellenic Horse Racing Agency (ODIE), for
which the risk not to recover it is estimated to be minimal, as described above, and therefore the relevant provision hasn’t been formed.
Reconciliation of changes in provisions
for impairment of short-term receivables
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Opening Balance
-16.929
-19.952
-13.962
-17.411
Provisions for the period for receivables from
subsidiaries ¹
0
0
0
-132
Provisions for the period for receivables from
third parties ²
-2.024
-753
-578
0
Provisions utilized for receivables from
subsidiaries
0
0
0
1.029
Provisions utilized for receivables from third
parties
323
3.216
0
0
Reversed provisions for receivables from
subsidiaries
0
0
131
0
Reversed provisions for receivables from third
parties
80
593
0
0
Subsidiaries disposal/change in consolidation
method
213
-262
0
0
Transfer from/to long term receivables
0
0
0
-160
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
212
Exchange differences
45
201
0
0
IAS 19 application
0
28
0
0
Transfer to investments to subsidiaries
0
0
0
2.713
Closing Balance
-18.292
-16.928
-14.409
-13.962
1
Relating to impairment provision of receivables from subsidiary and other related party of the Group derived either from machinery and equipment
disposal and services rendered or from loan contracts.
2
Relating to impairment provision of receivables from debtors (third parties outside the Group) derived from commercial transactions in the
ordinary course of business.
The maturity information of short-term and long-term receivables is as follows:
RECEIVABLES
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Trade receivables
76.861
91.306
35.186
34.586
Provisions for doubtful receivables
-10.730
-9.526
-7.312
-6.734
Receivables from related parties (note 2.31.E)
17.316
15.177
55.615
76.118
Provisions for doubtful receivables
-6.097
-6.543
-6.318
-6.450
Pledged bank deposits
8.378
5.295
4.657
1.774
Tax receivables
29.871
37.246
18.012
20.120
Guarantees
1.258
3.994
31
84
Prepaid expenses, advances and other
receivables
18.000
21.169
6.128
6.909
Provisions for doubtful receivables
-1.465
-1.305
-778
-778
Total
133.392
156.813
105.221
125.629
MATURITY INFORMATION
0-3 months
33.450
36.578
1.330
14.973
3-12 months
96.749
114.824
103.847
110.543
More than 1 year
3.194
5.411
45
112
Total
133.392
156.813
105.221
125.629
2.21 INVENTORIES
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Merchandise – Equipment
16.325
22.064
3.593
7.875
Other
3.780
5.112
0
0
Total
20.106
27.176
3.593
7.875
Provisions for impairment
-1.449
-1.473
0
0
Total
18.657
25.704
3.593
7.875
The burden for 2021, from disposals/usage and provision of inventories for the Group amounts to €9.644
thousand (2020: €17.044 thousand) while for the Company amounts to €1.367 thousand (2020: €2.990
thousand) and is included in “Cost of Sales”.
Reconciliation of changes in
inventories provision for
impairment
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Opening balance for the period
-1.473
-1.499
0
0
Provisions of the period
-422
Foreign exchange differences
24
26
Sale of subsidiary
422
Closing balance for the period
-1.449
-1.473
0
0
There are no liens on inventories.
2.22 CASH AND CASH EQUIVALENTS
Bank current accounts are either non-interest bearing or interest bearing and yield income at the daily
bank interest rates.
The short-term deposits are made for periods from one day to three months depending on the Group’s
cash requirements and yield income at the applicable prevailing interest rates.
For the purposes of the statement of cash flows, cash and cash equivalents consist of:
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
213
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Cash and bank current accounts
104.823
97.505
8.338
7.959
Short term time deposits/investments
(cash equivalents)
2.516
2.479
0
0
Total
107.339
99.984
8.338
7.959
2.23 SHARE CAPITAL, TREASURY SHARES AND RESERVES
Share Capital
Total number of authorized shares
31/12/2021
31/12/2020
Ordinary shares of nominal value €0,30 each
152.261.721
156.961.721
Issued and fully paid shares
Ordinary Shares
€’000
Balance December 31, 2021
152.261.721
45.679
Treasury Shares
Share buyback program 11.6.2014 - 11.6.2018:
The Company, according to article 16, C.L. 2190/1920, article 4.1.4.2 of the regulation of ATHEX and based
on the resolution of the Shareholder’s Annual General Meeting on 11.6.2014, as amended by the resolution
of the Shareholder’s Annual General Meeting of 19.5.2015 and 18.5.2017, has approved a treasury shares
buy-back program from the Company, of up to 10% of the paid share capital, for the time period of 24
months with effect from 11.06.2014 and until 11.06.2018, with a minimum price of €1,00 and maximum
price of €12,00. It has also been approved that the treasury shares which will eventually be acquired may
be held for future acquisition of shares of another company or be distributed to the Company's employees
or the staff of a company related with it. The above programme was cancelled with a relevant decision of
the Shareholder’s Annual General Meeting on 16.5.2018.
Share buyback program 16.5.2018 - 16.5.2020:
The Company, according to article 16, C.L. 2190/1920, article 4.1.4.2 of the regulation of ATHEX and based
on the resolution of the Shareholder’s Annual General Meeting on 16.5.2018, has approved a treasury
shares buy-back program from the Company, of up to 10% of the paid share capital, including treasury
shares which might have been acquired and held by the Company (on 16/5/2018 amounted 748.661
treasury shares that is 0,48% of the share capital following the cancelation of 2.000.000 treasury shares
and a relevant decrease in the share capital of the Company as approved by the Shareholder’s Annual
General Meeting for a period of 24 months with effect from 16.5.2018 and until 16.5.2020, with a minimum
price of €0,30 and maximum price of €12,00 cancelling the previous programme that was about to end on
11.6.2018. It has also been approved that the treasury shares which will eventually be acquired may be
held for future acquisition of shares of another company or be distributed to the Company's employees or
the staff of a company related with it.
During 2018, the Company purchased 9.218.779 treasury shares (5,87% of the Company’s share capital)
at an average price of €0,93 per share, totalling €8.589 thousand. Until 31/12/2020 the Company had
9.200.033 treasury shares (5,86% of the company’s share capital) with average price €0,93 per share,
with total price of €8.528 thousand subtracting 2.000.000 treasury shares (1,27% of the share capital of
the Company) at an average purchase price of €1,10, that were cancelled from the Shareholder’s Annual
General Meeting of 16.05.2018.
Share buyback program 29.05.2020 - 29.05.2022:
According to article 49, Law 4548/2018, article 4.1.4.2 of the regulation of ATHEX and based on the
resolution of the Shareholder’s Ordinary General Meeting which took place on the 29.05.2020, that a
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
214
treasury shares buy – back program by the Company of up to 10% of its paid share capital, taking into
account the shares which had been acquired and held by the Company (in the amount of 9.200.033 treasury
shares as of 29.05.2020, that is 5,861% of its share capital), for a period of 24 months with effect from
29.05.2020 and until 29.05.2022, with a minimum price of €0,30 and maximum price of €12, is approved.
It was approved also that the treasury shares which will eventually be acquired may be distributed to its
personnel and/or to the personnel of Company’s affiliates and/or to be kept for future acquisition of shares
in another company.
Treasury shares
GROUP
COMPANY
Number of
ordinary shares
€ ‘000
Number of ordinary
shares
€ ‘000
Balance December 31, 2021
3.724.936
3.018
3.724.936
3.018
INTRALOT, in accordance with the current legislation and its relevant announcement dated 13/04/2021
and 11/05/2021, informed that, by May 31 2021, it completed the sale of 775.097 own shares, or 0,49%
of its total share capital, with an average selling price of €0,16 per share and a total value of €126.392,04.
The Annual General Meeting of the Company’s shareholders that took place on June 29, 2021 decided the
reduction of the Company’s share capital by the amount of one million four hundred ten thousand euro
(€1.410.000,00) through the reduction of the total number of shares from 156.961.721 to 152.261.721
common registered shares, due to the cancellation of four million seven hundred thousand (4.700.000)
own common registered shares, with the amendment of article 5 of the Company’s Articles of Association.
Therefore, INTRALOT holds 3.724.936 own shares, which represent 2,45% of its total share capital.
Reserves
Foreign exchange differences reserve
This reserve is used to report the exchange differences arising from the translation of foreign subsidiaries’
financial statements. The balance of this reserve in the Group on 31/12/2021 was €-96,9 million
(31/12/2020: €-100,9 million). The Group had a total net gain which was reported in the statement of
comprehensive income from the change in the fair value reserve during 2021 amounting to €3,1 million,
out of which gain of €4,7 million is attributable to the owners of the parent and a loss of €1,6 million to
non-controlling interest. The above total net loss for 2021 comes mainly from the negative fluctuation of
USD, TRY and ARS against the EUR.
Ιn 2021, an accumulated loss of €42 thousand was reclassified/recycled in the income statement (line
"Profit / (loss) after tax from discontinued operations") from the reserve of foreign exchange differences
due to sale of subsidiaries Intralot do Brazil Ltda & OLTP Ltda and of the associate Intralot de Peru SAC.
Moreover, in 2021, a cumulative gain of € 1.104 thousand was reclassified / recycled to the income
statement (line "Foreign Exchange differences") from the foreign exchange differences reserve due to
liquidation of subsidiaries and associates.
Also, in 2020, an accumulated loss of €153 thousand was reclassified/recycled in the income statement
(line "Foreign Exchange Differences") from the reserve of foreign exchange differences due to the
liquidation of subsidiaries companies.
The main exchange rates of abroad subsidiaries financial statements conversion were:
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
215
• Statement of Financial Position:
31/12/2021
31/12/2020
Change
EUR / USD
1,13
1,23
-7,7%
EUR / AUD
1,56
1,59
-1,8%
EUR / TRY
15,23
9,11
67,2%
EUR / ARS
116,94
102,85
13,7%
EUR / BRL
6,31
6,37
-1,0%
• Income Statement:
AVG 1/1-
31/12/2021
AVG 1/1-
31/12/2020
Change
EUR / USD
1,18
1,14
3,5%
EUR / AUD
1,57
1,65
-4,8%
EUR / TRY
10,51
8,05
30,5%
EUR / ARS ¹
116,94
102,85
13,7%
EUR / BRL
6,38
5,89
8,2%
1
The Income Statement of 2021 and 2020 of the Group's subsidiaries operating in Argentina was converted at the closing rate of
31/12/2021 and 31/12/2020 instead of the Avg. 1/1-31/12/2021 and 1/1-31/12/2020 pursuant to IAS 21, paragraph 42a, for
hyperinflationary economies.
Other Reserves
GROUP
COMPANY
31/12/2021
31/12/2020
Restated *
31/12/2021
31/12/2020
Restated *
Statutory Reserve
24.309
23.638
15.896
15.896
Extraordinary Reserves
4.190
1.740
1.456
1.456
Tax Free and Specially Taxed Reserves
40.655
40.658
38.091
38.091
Treasury shares reserve
-760
5
-760
5
Actuarial differences reserve
-56
-73
-46
-66
Revaluation reserve
651
-207
-119
-158
Total operations
68.989
65.760
54.518
55.222
*Restated due to change in accounting policy (note 2.1.4)
Statutory reserve
Some of the Group companies are obliged, according to commercial laws in force in the country based, to
form a percentage of their annual net profit as reflected in their statutory books to a legal reserve. Under
Greek corporate law, companies are required to form at least 5% of their annual net profit as reflected in
their statutory books to a legal reserve until the aggregate amount of legal reserve reaches at least 1/3 of
the share capital. This reserve cannot be distributed during the Company's operation. Statutory reserve as
of 31 December 2021 amounts to €24,3 million for the Group and €15,9 million for the Company
(31/12/2020: €23,6 million and €15,9 million respectively).
Extraordinary Reserves
They concern among other, reserves formed under development laws, from the Company and certain
subsidiaries of the Group. For these reserves the tax liability has run out or permanently exempted from
taxation and therefore their distribution does not create further tax burden on the Group and Company.
Extraordinary reserves on 31 December 2021 amount to €4,2 million for the Group and €1,5 million for the
Company (31/12/2020: €1,7 million and €1,5 million respectively).
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
216
Tax free and specially taxed reserves
Tax-free and specially taxed reserves represent investment or development laws, and special laws reserves
and interest income, which are either tax free or taxed at 15% at source.
These revenues are not taxable provided that there are sufficient profits from which can be formed relative
untaxed reserves. According to the Greek tax legislation, these reserves are exempt from income tax,
provided they are not distributed to shareholders. The distribution of the balance of these reserves can
only occur following the approval of shareholders in a regular meeting and if the applicable taxation is paid.
The Group does not intend to distribute the balance of these reserves and therefore has not calculated the
tax liability that would arise from the distribution. Also the dividends received or received from resident
companies which have their registered office in another member state of the European Union, in which the
resident company participates within the meaning of article 11 of L.2578/1998, and the articles 48 & 63 of
(L.4172/2013) are exempt from taxation. The exempt amount is shown in a special reserve account
(POL.1007 / 2014), irrespective of the profitability or not. If this or any part of the reserve is distributed or
capitalized, the amount of the reserve is not added to earnings aggregated with other earnings. The balance
of the tax free and specially taxed reserves on 31 December 2021 was €40,7 million for the Group
(31/12/2020: €40,7 million) and €38,1 million for the Company (31/12/2020: €38,1 million).
Treasury shares reserve
It relates to profits or losses arising from the sale, re-issue or cancellation of treasury shares and amounted
to €-760 thousand for the Group and the Company on 31/12/2021 (31/12/2020: €5 thousand).
Actuarial differences reserve
It concerns actuarial gains / losses arising from actuarial studies performed by the Group to its subsidiaries
for the various benefit plans to employees. The actuarial differences reserve on 31 December 2021 amount
to €-56 thousand for the Group and €-46 thousand for the Company (31/12/2020: €-73 thousand and €-
66 thousand respectively).
Revaluation Reserve
It concerns changes in the fair value of assets through other comprehensive income amount on 31
December 2021 to €651 thousand for the Group and €-119 thousand for the Company (31/12/2020: €-
207 thousand and €-158 thousand respectively).
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020
217
Analysis of changes in other comprehensive income by category of reserves
GROUP 1/1-31/12/2021
Actuarial
differences Reserve
Revaluation
Reserve
Foreign exchange
differences Reserve
Retained
Earnings
Total
Non-controlling
interest
Grand Total
Defined benefit plans revaluation for
subsidiaries and parent company
16
0
0
-2
14
-3
12
Valuation of assets measured at fair value
through other comprehensive income of
parent and subsidiaries
0
-50
0
0
-50
0
-50
Foreign exchange differences on consolidation
of subsidiaries
0
0
3.369
0
3.369
-1.582
1.787
Share of foreign exchange differences on
consolidation of associates and joint ventures
0
0
1.329
0
1.329
0
1.329
Total operations
16
-50
4.698
-2
4.662
-1.585
3.078
GROUP 1/1-31/12/2020 Restated *
Actuarial
differences Reserve
Revaluation
Reserve
Foreign exchange
differences Reserve
Retained
Earnings
Total
Non-controlling
interest
Grand Total
Defined benefit plans revaluation for
subsidiaries and parent company
-86
0
0
-35
-121
-21
-143
Revaluation of defined benefit plans of
associates and joint ventures
0
0
0
0
0
0
0
Valuation of assets measured at fair value
through other comprehensive income of
parent and subsidiaries
0
-112
0
0
-112
0
-112
Foreign exchange differences on
consolidation of subsidiaries
0
0
-12.914
0
-12.914
-2.257
-15.171
Share of foreign exchange differences on
consolidation of associates and joint ventures
0
0
-735
0
-735
0
-735
Total operations
-86
-112
-13.650
-35
-13.883
-2.278
-16.161
*Restated due to change in accounting policy (note 2.1.4)
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020
218
COMPANY 1/1-31/12/2021
Actuarial
differences
Reserve
Revaluation
Reserve
Total
Defined benefit plans revaluation
20
0
20
Valuation of assets measured at fair value
through other comprehensive income
0
41
41
Other comprehensive income /
(expenses) after tax
20
41
61
COMPANY 1/1-31/12/2020 Restated *
Actuarial
differences
Reserve
Revaluation
Reserve
Total
Defined benefit plans revaluation
-64
0
-64
Valuation of assets measured at fair value
through other comprehensive income
0
1
1
Other comprehensive income /
(expenses) after tax
-64
1
-63
*Restated due to change in accounting policy (note 2.1.4)
2.24 DIVIDENDS
Declared dividends of ordinary shares:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Final dividend of 2012
509
0
0
Final dividend of 2019
8.366
0
0
Final dividend of 2020
4.318
0
0
First dividend of 2021
688
0
0
Dividend per statement of changes in equity
5.006
8.875
0
0
Paid Dividends on ordinary shares:
During 2021 dividends paid on ordinary shares, aggregated € 6.479 thousand (2020: € 8.461 thousand).
2.25 DEBT
Long-term loans and lease liabilities:
GROUP
COMPANY
Currency
Interest
rate
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Facility A (€250,0 million)
EUR
6,75%
0
253.313
0
0
Facility B (€500,0 million)
EUR
5,25%
500.266
497.832
0
0
Facility SSN ($242,1 million)
EUR
7,09% -
8,87%
220.500
0
0
0
Extra Facility ($11,9 million)
EUR
7,09% -
8,87%
10.866
0
0
0
Supplemental Indenture
(€2,1 million)
EUR
0,001%
2.073
0
0
0
Intercompany Loans
0
0
252.678
308.338
Other
3.286
15.661
0
0
Total Loans (long-term and short-
term) before repurchasing
736.992
766.806
252.678
308.338
Less: Payable during the next year
-13.678
-272.032
-2.253
0
Repurchase of Facility B
-144.509
-26.078
0
0
Long-term loans after repurchasing
578.805
468.695
250.425
308.338
Long-term lease liabilities ¹
9.179
7.469
519
1.193
Total long-term debt (loans and lease liabilities)
587.984
476.165
250.945
309.531
1
In the Group and the Company on 31/12/2021 included Long-term lease liabilities from other related parties amount
to €4.610 thousand and €223 thousand respectively (note 2.31.Ε).
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020
219
Short-term loans and lease liabilities:
GROUP
COMPANY
Currency
Interest rate
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Facility A (€250,0 million)
0
253.313
0
0
Facility B (€500,0 million)
6.847
6.843
0
0
Facility SSN ($242,1 million)
EUR
7,09% - 8,87%
6.733
0
0
0
Extra Facility ($11,9 million)
EUR
7,09% - 8,87%
332
0
0
0
Supplemental Indenture (€2,1 million)
EUR
0,001%
0
0
0
0
Other
1.744
12.653
2.253
0
Short-term loans before repurchasing
15.656
272.808
2.253
0
Repurchasing Facility B
-1.978
-776
0
0
Short-term loans after repurchasing
13.678
272.032
2.253
0
Short-term lease liabilities ¹
2.857
2.882
269
450
Total short-term debt (loans and lease liabilities)
16.535
274.914
2.522
450
1
In the Group and the Company as at 31/12/2021 included Short-term lease liabilities from other related parties amount to €261
thousand and €70 thousand respectively (note 2.31.Ε).
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Total debt (loans and lease liabilities)
604.519
751.078
253.467
309.982
• Facility A: In September 2016, Intralot Capital Luxembourg, issued Senior Notes with a nominal
value of €250 million, guaranteed by the parent company and subsidiaries of the Group, due 15
September 2021. The Notes were offered at an issue price of 100,000%. Interest is payable semi-
annually at an annual fixed nominal coupon of 6,75%. The Notes are trading on the Luxembourg
Stock Exchanges Euro MTF Market. The Notes bear the Group financial covenants for incurring
additional debt with respect to total Net Debt (senior) to EBITDA (EBITDA/ “Consolidated Cash
Flow”) (Senior Leverage ratio <3,75), and financial expenses coverage ratio (Fixed Charge
Coverage ratio >2,00). On 15/9/2020 this Facility was reclassified from long-term to short-term
in accordance with IAS 1. The Group following the entrance into a Supplemental Indenture to
amend certain terms of Facility A on 28/6/2021 and its utilization on 30/6/2021, as described in
more detail below, on 3/8/2021 proceeded to the exchange of 98,99% of the nominal value of
Facility A with New Notes with a nominal value of $242.111.911 due September 2025 that were
issued by subsidiary Intralot, Inc.
• Facility B: In September 2017, Intralot Capital Luxembourg issued Senior Notes with a nominal
value of €500,0 million, guaranteed by the parent company and subsidiaries of the Group, due 15
September 2024. The Notes were offered at an issue price of 100,000%. Interest is payable semi-
annually at an annual fixed nominal coupon of 5,25%. The Notes are trading on the Luxembourg
Stock Exchanges Euro MTF Market. The Notes bear the Group financial covenants for incurring
additional debt with respect to total Net Debt (senior) to EBITDA (EBITDA/ “Consolidated Cash
Flow”) (Senior Leverage ratio <3,75), and financial expenses coverage ratio (Fixed Charge
Coverage ratio >2,00). The Group proceeded to the repurchase of bonds from the open market
with nominal value of €5,0 million during 2018, as well as €21,2 million during the second half of
2019, forming the total outstanding nominal amount at €473,8 million. The Group finalized on
3/8/2021 the transfer of shares from Intralot Global Holdings B.V., amounting to 34,27% of the
share capital of Intralot US Securities B.V. (indirect parent of Intralot, Inc.), to the holders of
existing Notes of the Facility B with a nominal value of €118.240.000 who participated in the
exchange. Following the above procedure, these Notes came to the possession of Intralot Global
Holdings B.V.. So, the total outstanding nominal value of Facility B on 3/8/2021 came up to €355,6
million.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020
220
• Facility SSN & Extra Facility: On August 3rd, 2021, New Notes (Facility SSN) with a nominal value
of $242.111.911 due September 2025 were issued by US based Intralot, Inc., in exchange for
existing Notes maturing in September 2021 with nominal value of €247.471.724,07
(corresponding to an 18% discount), which were then cancelled. At the same date, additional
notes (Extra Facility) with a nominal value of $11.931.000 due September 2025 were issued by
Intralot, Inc. in cash that were used for other corporate purposes. Interest is payable semi-
annually for both facilities at an annual fixed nominal coupon of 7.09% until 15/9/2023, 8.19%
from 15/9/2023 to 15/9/2024 and 8.87% from 15/9 / 2024 until 15/9/2025. The Notes bear the
US Sub-group financial covenants for incurring additional debt with respect to the total Net Debt
(senior) to EBITDA (EBITDA/ “Consolidated Cash Flow”) (Senior Leverage ratio <3,75).
• Supplemental Indenture: On August 3
rd
, 2021, New Notes (Supplemental Indenture) with a
nominal value of € 2.073.186 due in September 2050 were issued by Intralot Capital Luxembourg,
guaranteed by the parent company and subsidiaries of the Group.
The Group under the Senior Notes (Facility B) terms will be able to incur additional debt so long as
on an actual basis its consolidated fixed charge coverage ratio is at least 2,00 (31/12/2021: approx.
2,86), and will be able to incur additional senior debt as long as on an actual basis its total Net Debt
(senior) to EBITDA consolidated (Senior leverage ratio) is not more than 3,75 (31/12/2021: approx.
4,36). Furthermore, to the above, the Group can incur additional debt from specific baskets.
Additionally, under the New Senior Notes (Facility SSN & Extra Facility), the Group, through its
subsidiary Intralot Inc., will be able to incur additional debt as long as on an actual basis its total
Net Debt (senior) to EBITDA consolidated (Senior leverage ratio) is not more than 3,75
(31/12/2021: in compliance).
The Company, the subsidiaries of the Group or other related parties, or agents on its or their behalf,
may from time to time purchase and/or re-sell bonds of the Group in one or more series of open-
market transactions from time to time. The Group does not intend to disclose the extent of any such
purchase or re-sale otherwise than in accordance with any legal or regulatory obligation the Group
may have to do so.
• Other facilities:
Facility C: In February and March 2020 Intralot Global Holdings BV signed a loan agreement, with
relevant securities on financial assets, amounting up to €18 million as a revolving facility and
issuing bank letters of guarantee. Loan agreement bears a floating reference rate (relevant bank’s
cost of funding cost) plus a 1,65% margin. The above revolving facility has been fully paid as at
30/6/2021 and the in-force letters of guarantee amounted to €10,2 million.
Maturity analysis of lease liabilities
GROUP
Minimum of
the lease
payments
Present value
of the minimum
lease payments
Minimum of
the lease
payments
Present value of the
minimum lease
payments
31/12/2021
31/12/2021
31/12/2020
31/12/2020
Within 1 year
3.363
2.857
3.278
2.882
Between 2 and 5 years
7.241
6.421
6.261
5.647
Over 5 years
3.076
2.758
2.059
1.822
Minus: Interest
-1.644
0
-1.247
0
Total
12.036
12.036
10.351
10.351
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020
221
COMPANY
Minimum of
the lease
payments
Present value
of the minimum
lease payments
Minimum of
the lease
payments
Present value of
the minimum
lease payments
31/12/2021
31/12/2021
31/12/2020
31/12/2020
Within 1 year
308
269
535
450
Between 2 and 5 years
556
519
1.235
1.114
Over 5 years
0
0
87
79
Minus: Interest
-76
0
-214
0
Total
788
788
1.643
1.643
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
222
Reconciliation of liabilities arising from financing activities:
Non cash adjustments
Group
BALANCE
Cash
flows
Accrued
interest
Foreign exchange
differences & IAS
29 effect
Transfers
Impact from
debt
restructuring
Purchases of
fixed assets
under
leases/contract
cancellation
Change of
consolidation
method &
other transfers
BALANCE
31/12/2020
31/12/2021
Long term loans
468.695
-14.057
31.778
10.947
-7.252
88.694
0
0
578.805
Short term loans
272.032
-38.942
24.394
146
7.252
-251.204
0
0
13.678
Long term lease liabilities
7.469
-4.190
564
334
-223
0
5.226
0
9.179
Short term lease liabilities
2.882
-285
3
49
233
0
0
-25
2.857
Total liabilities from financing
activities
751.078
-57.474
56.739
11.476
10
-162.509
5.226
-25
604.520
Non cash adjustments
Group
BALANCE
Cash
flows
Accrued
interest
Foreign
exchange
differences &
IAS 29 effect
Transfers
Effect from
IFRS 16
application
1/1/2019
Purchases of
fixed assets
under
leases/contract
cancellation
Repurchase
results
Discontinued
operations/
change of
consolidation
method & other
transfers
BALANCE
31/12/2019
31/12/2020
Long term loans
716.674
-4.162
903
-326
-243.852
0
0
0
-542
468.695
Short term loans
31.851
-48.851
46.639
-681
243.852
0
0
0
-778
272.032
Long term lease liabilities
10.681
-5.572
624
-585
2.047
0
303
0
-29
7.469
Short term lease liabilities
6.019
-654
0
-297
-2.047
0
-123
0
-16
2.882
Total liabilities from financing
activities
765.225
-59.239
48.166
-1.889
0
0
180
0
-1.365
751.078
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
223
Maturity of long-term debt:
Long term loans after repurchases:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
From 1 to 5 years
590.410
468.695
250.425
308.338
More than 5 years
2.073
0
0
0
Total
592.483
468.695
250.425
308.338
Long term lease liabilities:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
From 1 to 5 years
6.421
5.647
519
1.114
More than 5 years
2.758
1.822
0
79
Total
9.179
7.469
519
1.193
Total debt is classified as below in relation to the issue currency:
Long term loans after repurchases:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Loans in EUR
352.961
465.687
250.425
308.338
Loans in USD
225.843
3.008
0
0
Loans in BGL
0
0
0
0
Total
578.805
468.695
250.425
308.338
Long term lease liabilities:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Leases in EUR
860
1.966
519
1.193
Leases in USD
7.507
4.310
0
0
Leases in BGL
0
0
0
0
Leases in NZD
249
302
0
0
Leases in AUD
27
328
0
0
Leases in MAD
48
0
0
0
Leases in ARS
20
246
0
0
Leases in TRY
402
317
0
0
Leases in BRL
65
0
0
0
Total
9.179
7.469
519
1.193
Short term loans after repurchases:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Loans in EUR
4.869
270.618
0
0
Loans in USD
8.782
1.385
0
0
Loans in TRY
27
28
0
0
Total
13.678
272.032
0
0
Short term lease liabilities:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Leases in EUR
713
1.036
269
450
Leases in USD
1.220
1.119
0
0
Leases in MAD
139
0
0
0
Leases in NZD
92
92
0
0
Leases in AUD
313
290
0
0
Leases in ARS
168
148
0
0
Leases in CLP
19
20
0
0
Leases in TRY
147
104
0
0
Leases in BRL
46
73
0
0
Total
2.857
2.882
269
450
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
224
2.26 STAFF RETIREMENT INDEMNITIES
(a) State Insurance Programs:
The Group’s contributions to the State insurance funds for the year ended 31 December 2021 that were
reported in the year’s expenses amount to € €9.728 thousand as stated in note 2.4.
(b) Insurance Programs in USA:
The US Subsidiaries have a defined contribution plan ("The Intralot USA 401 (k) Plan") under Section
401 (k) of the Internal Revenue Code, which covers virtually all their full-time employees. The program
requires matching contributions up to 6% of employees' salaries, and there is a provision for additional
contributions that are at the discretion of the Board of Directors. The Group's subsidiaries in the US
incurred expenses related to the above program, which in 2021 amounted to €1.492 thousand (2020:
€1.307 thousand) and are included under "Other staff costs" in note 2.4. On retirement, "The Intralot
USA 401 (k) Plan" is responsible for paying employees' retirement benefits. Consequently, the Group
has no legal or constructive obligation to pay future benefits under this plan.
(c) Staff Retirement Indemnities:
According to Greek Labor Law, employees are entitled to indemnity on dismissal or retirement, the
amount of which varies depending on the years of service, salary level and the way the employee leaves
employment (dismissal or retirement). Employees that resign or are dismissed for legally valid reasons
are not indemnified. The indemnity payable on retirement is 40% of the amount that would have been
payable to the same employee on dismissal on the same day (retirement date). In Greece, based on
customary practice these programs are not funded. The Group charges to the income statement the
expense attributable to the service provided by employees in the year, with a corresponding increase in
the provision for staff retirement indemnities. Any payments made to retiring employees, are set against
the related provision.
Independent actuaries calculated the Company’s and the Group’s liability for retirement indemnities.
The movement of the net liability as presented in the financial position, details and the basic assumptions
used in the actuarial study as of 31 December 2021 are as follows:
GROUP
COMPANY
31/12/2021
31/12/2020
Restated *
31/12/2021
31/12/2020
Restated *
Present Value of unfunded liability
1.354
4.519
1.176
3.823
Reconsideration of opening balance from IAS 19 effect
0
-3.130
0
-2.655
Unrecognized actuarial losses
0
0
0
0
Net liability on the financial position
1.354
1.389
1.176
1.168
Components of the net retirement cost in the year:
Current service cost
214
-23
168
124
Finance cost
21
52
7
39
Effect of cutting / settlement / termination benefits
1.361
567
1.253
310
Intragroup staff transfer
0
0
-11
-6
Debit to income statement (Note2.4)- (total operations)
1.596
596
1.417
467
Additional service cost
0
0
0
0
Total charge to income statement
1.596
596
1.417
467
Actuarial (gains) / losses recognized in other comprehensive income
(before deferred tax)
-10
205
-16
131
Deferred tax attributable to actuarial (gains)/losses
-2
-63
-4
-66
Total debit/(credit) / losses in other comprehensive income
-12
143
-20
64
Reconciliation of benefit liabilities:
Net liability at beginning of year
1.389
3.807
1.168
3.358
Revaluation from reconsideration of IAS 19
0
-2.614
0
-2.346
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
225
Service cost
214
-23
168
124
Finance cost
21
52
7
39
Effect of cutting / settlement / termination benefits
1.361
567
1.253
310
Benefits paid
-1.590
-556
-1.392
-440
Intragroup staff transfer
0
0
-11
-6
Disposal of subsidiary
0
-29
0
0
Actuarial (gains) / losses
-10
206
-16
131
Exchange differences
-32
-21
0
0
Present Value of the liability at end of year
1.354
1.389
1.176
1.168
*Restated due to change in accounting policy (note 2.1.4)
Basic assumptions:
GROUP
COMPANY
31/12/2021
31/12/2020
Restated *
31/12/2021
31/12/2020
Restated *
Discount rate
0,60%
0,60%
0,60%
0,60%
Percentage of annual salary increases
1,94%
2,01%
1,80%
1,75%
Increase in Consumer Price Index
1,86%
1,63%
1,80%
1,50%
Sensitivity analysis for the most important assumptions on 31/12/2021:
Effect on current service cost
GROUP
COMPANY
increase 0,5%
decrease 0,5%
increase 0,5%
decrease 0,5%
Discount rate
-30
40
-7
8
Percentage of annual salary increases
34
-33
7
-7
Effect on present value of liability
GROUP
COMPANY
increase 0,5%
decrease 0,5%
increase 0,5%
decrease 0,5%
Discount rate
-62
74
-36
38
Percentage of annual salary increases
60
-59
30
-30
Analysis of Actuarial (gains) / losses in other comprehensive income (before deferred tax):
GROUP
COMPANY
31/12/2021
31/12/2020
Restated *
31/12/2021
31/12/2020
Restated *
Change in economic assumptions
9
251
7
169
Change in demographic assumptions
0
0
0
0
Change due to experience and other assumptions
change
-19
-45
-23
-38
Actuarial (gains) / losses in other
comprehensive income (before deferred tax)
-10
205
-16
131
Impact due to revision of IAS 19:
(Amounts in thousand €)
GROUP
Financial Position Statement Quote
31/12/2019
IAS 19 adjustment
1/1/2020
Other Reserves
67.292
10
67.302
Retained Earnings
-111.321
2.603
-108.718
Deferred tax liabilities
10.597
627
11.224
Staff retirement indemnities
3.807
-2.614
1.193
(Amounts in thousand €)
COMPANY
Financial Position Statement Quote
31/12/2019
IAS 19 adjustment
1/1/2020
Other Reserves
55.283
4
55.287
Retained Earnings
-45.261
2.342
-42.919
Deferred tax liabilities
5.320
563
5.883
Staff retirement indemnities
3.358
-2.346
1.012
(Amounts in thousand €)
GROUP
Income Statement Quote
31/12/2020
31/12/2020 Restated
1
Deferred Tax income / (expense)
-296
-143
Cost of Sales
-289.548
-289.313
Selling Expenses
-23.677
-23.644
Administrative Expenses
-66.528
-66.439
Research and Development Expenses
-2.865
-2.859
Deferred Tax Current
-981
-1.105
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
226
1
The restated balance sheet as at 31/12/2020 of the items shown in the table above, includes only the effect from the revision of
IAS 19 and not the effect of the Group's subsidiaries in Poland (Totolotek SA), in Bulgaria (Bilot EOOD , Eurofootball Ltd, Bilot
Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd, ICS SA), in Brazil (Intralot do Brazil Ltda, OLTP Ltda) and in Peru (Intralot de Peru
SAC), presented as discontinued activities under IFRS 5 in the comparative table of the Income Statement.
2
Administrative expenses as at 31/12/2020 do not include Reorganization expenses amounting to €6.754 thousand.
(Amounts in thousand €)
COMPANY
Income Statement Quote
31/12/2020
31/12/2020 Restated
1
Deferred Tax income / (expense)
-210
-64
Cost of Sales
-32.191
-32.122
Selling Expenses
-9.333
-9.300
Administrative Expenses
-14.741
-14.686
Research and Development Expenses
-2.865
-2.859
Deferred Tax Current
-1.847
-1.921
1
Administrative expenses as at 31/12/2020 do not include Reorganization expenses amounting to €2.188 thousand.
2.27 SHARED BASED BENEFITS
The Group had no active option plan during 2021.
2.28 OTHER LONG-TERM LIABILITIES
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Deferred Income
650
879
0
51
Other liabilities
466
570
0
0
Guarantees
36
0
36
0
Total
1.152
1.449
36
51
2.29 TRADE AND OTHER CURRENT LIABILITES
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Creditors
55.557
40.790
4.279
2.590
Amounts due to related parties (Note
2.31.E)
3.410
7.452
32.186
27.980
Winnings payable
2.298
2.636
0
0
Other creditors
9.792
10.624
894
1.281
Deferred Income
6.569
13.701
2.547
3.221
Accrued expenses for the period
2.365
2.848
693
366
Taxes
7.059
11.445
-865
263
Dividends payable
0
2
0
0
Total
87.050
89.498
39.734
35.701
The maturity of short-term and long-term liabilities is as follows:
PAYABLES
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Creditors
55.557
40.790
4.279
2.590
Payable to related parties (note 2.31.E)
3.410
7.452
32.186
27.980
Other payables
29.235
42.706
3.305
5.183
Total
88.202
90.948
39.770
35.753
MATURITY INFORMATION
0-3 months
52.898
23.501
651
162
3-12 months
34.153
65.998
39.083
35.540
More than 1 year
1.152
1.449
36
51
Total
88.202
90.948
39.770
35.753
2.30 FINANCIAL ASSETS AND LIABILITIES
The financial assets and liabilities of the Group, excluding cash and cash equivalents are analyzed as
follows:
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
227
31/12/2021
GROUP
Financial assets:
Debt instruments
at amortized cost
Equity instruments at
fair value through
other comprehensive
income
Derivative financial
assets at fair value
through other
comprehensive income
Total
Trade receivables
76.861
0
0
76.861
Provisions for doubtful receivables
-10.730
0
0
-10.730
Receivables from related parties
17.316
0
0
17.316
Provisions for doubtful receivables
-6.097
0
0
-6.097
Pledged bank deposits
8.378
0
0
8.378
Tax receivables
29.871
0
0
29.871
Prepaid expenses and other receivable
19.258
0
0
19.258
Provisions for doubtful receivables
-1.465
0
0
-1.465
Other quoted financial assets
28
81
0
109
Total
133.420
81
0
133.501
Long-term
3.209
81
0
3.290
Short-term
130.211
0
0
130.211
Total
133.420
81
0
133.501
31/12/2020
GROUP
Financial assets:
Debt instruments
at amortized cost
Equity instruments at
fair value through other
comprehensive income
Derivative financial assets
at fair value through other
comprehensive income
Total
Trade receivables
91.306
0
0
91.306
Provisions for doubtful receivables
-9.526
0
0
-9.526
Receivables from related parties
15.177
0
0
15.177
Provisions for doubtful receivables
-6.543
0
0
-6.543
Pledged bank deposits
5.295
0
0
5.295
Tax receivables
37.246
0
0
37.246
Prepaid expenses and other receivable
25.164
0
0
25.164
Provisions for doubtful receivables
-1.305
0
0
-1.305
Other quoted financial assets
47
229
0
276
Total
156.860
229
0
157.090
Long-term
5.443
229
0
5.672
Short-term
151.417
0
0
151.417
Total
156.860
229
0
157.090
31/12/2021
GROUP
Financial liabilities:
Financial liabilities
measured at
amortized cost
Financial liabilities at
fair value through
profit and loss
Financial liabilities at fair
value through other
comprehensive income
Total
Creditors
55.557
0
0
55.557
Payables to related parties
3.410
0
0
3.410
Other liabilities
29.235
0
0
29.235
Borrowing and lease liabilities
604.519
0
0
604.519
Total
692.721
0
0
692.721
Long-term
589.136
0
0
589.136
Short-term
103.585
0
0
103.585
Total
692.721
0
0
692.721
31/12/2020
GROUP
Financial liabilities:
Financial liabilities
measured at
amortized cost
Financial liabilities
at fair value through
profit and loss
Financial liabilities at
fair value through other
comprehensive income
Total
Creditors
40.790
0
0
40.790
Payables to related parties
7.452
0
0
7.452
Other liabilities
42.706
0
0
42.706
Borrowing and lease liabilities
751.078
0
0
751.078
Total
842.026
0
0
842.026
Long-term
477.614
0
0
477.614
Short-term
364.412
0
0
364.412
Total
842.026
0
0
842.026
Below is the analysis of the financial assets and liabilities of the Company excluding cash and cash
equivalents:
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
228
31/12/2021
COMPANY
Financial assets:
Debt instruments at
amortized cost
Equity instruments at
fair value through other
comprehensive income
Derivative financial
assets at fair value
through other
comprehensive income
Total
Trade receivables
35.186
0
0
35.186
Provisions for doubtful receivables
-7.312
0
0
-7.312
Receivables from related parties
55.615
0
0
55.615
Provisions for doubtful receivables
-6.318
0
0
-6.318
Pledged bank deposits
4.657
0
0
4.657
Tax receivables
18.012
0
0
18.012
Prepaid expenses and other receivable
6.159
0
0
6.159
Provisions for doubtful receivables
-778
0
0
-778
Other quoted financial assets
0
80
80
Total
105.222
80
0
105.302
Long-term
45
80
0
125
Short-term
105.177
0
0
105.177
Total
105.222
80
0
105.302
31/12/2020
COMPANY
Financial assets:
Debt instruments
at amortized cost
Equity instruments at
fair value through other
comprehensive income
Derivative financial
assets at fair value
through other
comprehensive income
Total
Trade receivables
34.586
0
0
34.586
Provisions for doubtful receivables
-6.734
0
0
-6.734
Receivables from related parties
76.118
0
0
76.118
Provisions for doubtful receivables
-6.450
0
0
-6.450
Pledged bank deposits
1.774
0
0
1.774
Tax receivables
20.120
0
0
20.120
Prepaid expenses and other receivable
6.993
0
0
6.993
Provisions for doubtful receivables
-778
0
0
-778
Other quoted financial assets
0
39
39
Total
125.628
39
0
125.668
Long-term
112
39
0
151
Short-term
125.516
0
0
125.516
Total
125.628
39
0
125.668
31/12/2021
COMPANY
Financial liabilities:
Financial liabilities
measured at
amortized cost
Financial liabilities at
fair value through
profit and loss
Financial liabilities at
fair value through other
comprehensive income
Total
Creditors
4.279
0
0
4.279
Payables to related parties
32.186
0
0
32.186
Other liabilities
3.305
0
0
3.305
Borrowing and lease liabilities
253.467
0
0
253.467
Total
293.236
0
0
293.236
Long-term
250.981
0
0
250.981
Short-term
42.255
0
0
42.255
Total
293.236
0
0
293.236
31/12/2020
COMPANY
Financial liabilities:
Financial liabilities
measured at
amortized cost
Financial liabilities at
fair value through
profit and loss
Financial liabilities at fair
value through other
comprehensive income
Total
Creditors
2.590
0
0
2.590
Payables to related parties
27.980
0
0
27.980
Other liabilities
5.183
0
0
5.183
Borrowing and lease liabilities
309.982
0
0
309.982
Total
345.735
0
0
345.735
Long-term
309.583
0
0
309.583
Short-term
36.152
0
0
36.152
Total
345.735
0
0
345.735
Estimated fair value
Below is a comparison by category of carrying amounts and fair values of financial assets and
liabilities of the Group and the Company as of December 31, 2021 and December 31, 2020:
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
229
Financial Assets
GROUP
Carrying
Amount
Carrying
Amount
Fair Value
Fair Value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Other long-term financial assets - classified as "equity
instruments at fair value through other comprehensive
income "
81
229
81
229
Other long-term financial assets - classified as "debt
instruments at fair value at amortized cost"
16
32
16
32
Other long-term receivables
3.194
5.411
3.194
5.411
Trade and other short-term receivables
130.198
151.403
130.198
151.403
Other short-term financial assets - classified as “debt
instruments at amortized cost”
13
14
13
14
Cash and cash equivalents
107.339
99.984
107.339
99.984
Total
240.841
257.073
240.841
257.073
Financial Assets
COMPANY
Carrying
Amount
Carrying
Amount
Fair Value
Fair Value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Other long-term financial assets - classified as "equity
instruments at fair value through other comprehensive
income "
80
39
80
39
Other long-term receivables
45
112
45
112
Trade and other short-term receivables
105.177
125.516
105.177
125.516
Cash and cash equivalents
8.338
7.959
8.338
7.959
Total
113.641
133.626
113.641
133.626
Financial Liabilities
GROUP
Carrying Amount
Carrying Amount
Fair Value
Fair Value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Long-term loans
578.805
468.695
543.383
180.745
Other long-term liabilities
1.152
1.449
1.152
1.449
Long-term lease liabilities
9.179
7.469
9.179
7.469
Trade and other short-term payables
87.050
89.499
87.050
89.499
Short-term loans and lease liabilities
16.535
274.914
16.116
126.600
Total
692.721
842.026
656.880
405.761
Financial Liabilities
COMPANY
Carrying Amount
Carrying Amount
Fair Value
Fair Value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Long-term loans
250.425
308.338
250.425
308.338
Other long-term liabilities
36
51
36
51
Long-term lease liabilities
519
1.193
519
1.193
Trade and other short-term payables
39.734
35.702
39.734
35.702
Short-term loans and lease liabilities
2.522
450
2.522
450
Total
293.236
345.734
293.236
345.734
The management estimated that the carrying value of cash and cash equivalents, trade and other
receivables, trade and other payables approximates their fair value, primarily because of their
short-term maturities.
Fair value hierarchy
The Group classifies fair value measurements using a fair value hierarchy that reflects the significance
of the inputs used in making these measurements. The levels of the fair value hierarchy are as follows:
Level 1: official quoted prices (unadjusted) in markets with significant volume of transactions for similar
assets or liabilities
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
230
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
The Group and the Company held on 31/12/2021 the following assets and liabilities measured at fair
value:
GROUP
Fair Value
Fair value hierarchy
31/12/2021
Level 1
Level 2
Level 3
Financial assets measured at fair value
Other financial assets classified as “equity instruments at
fair value through other comprehensive income”
81
81
0
0
- Quoted securities
81
81
0
0
- Unquoted securities
0
0
0
0
Other financial assets classified as “debt instruments at
amortized cost”
28
0
0
28
- Quoted securities
28
0
0
28
- Unquoted securities
0
0
Derivative financial instruments
0
0
0
0
Financial liabilities measured at fair value
Derivative financial instruments
0
0
0
0
COMPANY
Fair Value
Fair value hierarchy
31/12/2021
Level 1
Level 2
Level 3
Financial assets measured at fair value
Other financial assets classified as “equity instruments at
fair value through other comprehensive income”
80
80
0
0
- Quoted securities
80
80
0
0
- Unquoted securities
0
0
0
0
Derivative financial instruments
0
0
0
0
Financial liabilities measured at fair value
Derivative financial instruments
0
0
0
0
During 2021 there were no transfers between Level 1 and Level 2 of the fair value hierarchy, no transfers
to and from Level 3.
The Group and the Company held on 31/12/2020 the following assets and liabilities measured at fair
value:
GROUP
Fair Value
Fair value hierarchy
31/12/2020
Level 1
Level 2
Level 3
Financial assets measured at fair value
Other financial assets classified as “equity instruments at
fair value through other comprehensive income”
229
229
0
0
- Quoted securities
229
229
0
0
- Unquoted securities
0
0
0
0
Other financial assets classified as “debt instruments at
amortized cost”
47
0
0
47
- Quoted securities
47
0
0
47
- Unquoted securities
0
0
0
0
Derivative financial instruments
0
0
0
0
Financial liabilities measured at fair value
Derivative financial instruments
0
0
0
0
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
231
COMPANY
Fair Value
Fair value hierarchy
31/12/2020
Level 1
Level 2
Level 3
Financial assets measured at fair value
Other financial assets classified as “equity instruments at
fair value through other comprehensive income”
39
39
0
0
- Quoted securities
39
39
0
0
- Unquoted securities
0
0
0
0
Derivative financial instruments
0
0
0
0
Financial liabilities measured at fair value
Derivative financial instruments
0
0
0
0
During 2020 there were no transfers between Level 1 and Level 2 of the fair value hierarchy, no
transfers to and from Level 3.
Reconciliation for recurring fair value measurements classified in the 3rd level of the fair
value hierarchy:
Quoted securities
GROUP
COMPANY
Balance 31/12/2019
90
0
Fair value adjustment
17
Receipts
-30
Foreign exchange differences
-31
Balance 31/12/2020
47
0
Fair value adjustment
0
Receipts
-13
Exchange differences
-5
Balance 31/12/2021
28
0
Valuation methods and assumptions
The fair value of the financial assets and liabilities is the amount at which the asset could be sold or the
liability transferred in a current transaction between market participants, other than in a forced or
liquidation sale.
The following methods and assumptions are used to estimate the fair values:
• Fair value of the quoted shares (classified as "equity instruments at fair value through other
comprehensive income") derives from quoted market closing prices in active markets at the
reporting date.
• Fair value of the unquoted shares (classified as "equity instruments at fair value through other
comprehensive income") is estimated by reference to the current market value of another item
substantially similar or using a DCF model. The valuation through the DCF model requires
management to make certain assumptions about the model inputs, including forecast cash flows,
the discount rate, credit risk and volatility. The probabilities of the various estimates within the
range can be reasonably assessed and are used in management’s estimate of fair value for these
unquoted equity investments.
• Fair value of the quoted bonds is based on price quotations at the reporting date. The fair value
of unquoted instruments, loans from banks and other financial liabilities, obligations under
leases, as well as other non-current financial liabilities is estimated by discounting future cash
flows using rates currently available for debt on similar terms, credit risk and remaining
maturities.
• The Group uses derivative financial instruments such as forward currency contracts, interest rate
swaps, currency swaps and other derivatives in order to hedge risks related to interest rates and
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
232
foreign currency fluctuations. Such derivative financial instruments are measured at fair value
at each reporting date. The fair value of these derivatives is measured mainly by reference of
the market value and is verified by the financial institutions.
Description of significant unobservable inputs to valuation:
The fair value of unquoted shares (classified as "equity instruments at fair value through other
comprehensive income") except that it is sensitive to a reasonably possible change in the forecast cash
flows and the discount rate, is also sensitive to a reasonably possible change in growth rates. The
valuation requires management to use unobservable inputs in the model, of which the most significant
are disclosed in the tables below. The management regularly assesses a range of reasonably possible
alternatives for those significant unobservable inputs and determines their impact on the total fair value.
Unquoted shares (classified as "equity instruments at fair value through other comprehensive
income")
On 31/12/2021 and 31/12/2020 the Group did not hold any unquoted shares (classified as “Equity
instruments valued at fair value through other comprehensive income”).
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
233
2.31 SUPPLEMENTARY INFORMATION
A. BUSINESS COMBINATION AND METHOD OF CONSOLIDATION
The companies included in the consolidation, with the relevant addresses and the relevant participation percentages are the following:
I. Full consolidation
Domicile
Nature of business
% Direct
Part’n
%
Indirect
Part’n
% Total
Part’n
INTRALOT S.A.
Peania, Greece
Holding company / Technology and
support services
Parent
Parent
-
3.
BETTING COMPANY S.A.
Peania, Greece
Technology and support services
95%
5%
100%
17.
BETTING CYPRUS LTD
Nicosia, Cyprus
Technology and support services
100%
100%
INTRALOT IBERIA HOLDINGS S.A.
Madrid, Spain
Holding company
100%
100%
10.
INTRALOT JAMAICA LTD
Kingston, Jamaica
Technology and support services
100%
100%
10.
INTRALOT TURKEY A.S.
Istanbul, Turkey
Technology and support services
50%
49,99%
99,99%
10.
INTRALOT DE MEXICO LTD
Mexico City, Mexico
Technology and support services
99,80%
99,80%
10.
INTRALOT CHILE SPA
Santiago, Chile
Technology and support services
100%
100%
10.
INTELTEK INTERNET AS
Istanbul, Turkey
Management contracts
100%
100%
INTRALOT SERVICES S.A.
Peania, Greece
Technology and support services
100%
100%
BILYONER INTERAKTIF HIZMELTER AS
GROUP
Istanbul, Turkey
Management contracts
50,01%
50,01%
INTRALOT MAROC S.A.
Casablanca, Morocco
Management contracts
99,83%
99,83%
INTRALOT INTERACTIVE S.A.
Peania, Greece
Technology and support services
100%
100%
INTRALOT GLOBAL SECURITIES B.V.
Amsterdam, Netherlands
Holding company
100%
100%
1.
INTRALOT CAPITAL LUXEMBOURG S.A.
Luxembourg, Luxembourg
Financial services
100%
100%
1,2,3,4.
INTRALOT GLOBAL HOLDINGS B.V.
Amsterdam, Netherlands
Holding company
99,98%
0,02%
100%
5.
INTRALOT US SECURITIES B.V.
Amsterdam, Netherlands
Holding company
65,73%
65,73%
11.
INTRALOT US HOLDINGS B.V.
Amsterdam, Netherlands
Holding company
65,73%
65,73%
12.
INTRALOT INC
Atlanta, USA
Technology and support services
65,73%
65,73%
13.
DC09 LLC
Wilmington, USA
Technology and support services
32,21%
32,21%
13.
INTRALOT TECH SINGLE MEMBER S.A.
Peania, Greece
Technology and support services
65,73%
65,73%
5.
INTRALOT AUSTRALIA PTY LTD
Melbourne, Australia
Technology and support services
100%
100%
9.
INTRALOT GAMING SERVICES PTY
Melbourne, Australia
Technology and support services
100%
100%
5.
ILOT CAPITAL UK LTD
Hertfordshire, United Kingdom
Financial services
0,02%
99,98%
100%
5.
ILOT INVESTMENT UK LTD
Hertfordshire, United Kingdom
Financial services
0,02%
99,98%
100%
5.
INTRALOT NEDERLAND B.V.
Amsterdam, Netherlands
Technology and support services
100%
100%
18.
INTRALOT BENELUX B.V.
Amsterdam, Netherlands
Technology and support services
100%
100%
5.
LOTROM S.A.
Bucharest, Romania
Management contracts
84%
84%
5.
INTRALOT BEIJING Co LTD
Beijing, China
Technology and support services
100%
100%
5.
TECNO ACCION S.A.
Buenos Aires, Argentina
Technology and support services
50,01%
50,01%
5.
TECNO ACCION SALTA S.A.
Buenos Aires, Argentina
Licensed operations
50,01%
50,01%
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
234
I. Full consolidation
Domicile
Nature of business
% Direct
Part’n
%
Indirect
Part’n
% Total
Part’n
5.
MALTCO LOTTERIES LTD
Valetta, Malta
Licensed operations
73%
73%
5.
INTRALOT NEW ZEALAND LTD
Wellington, New Zealand
Technology and support services
100%
100%
5.
INTRALOT DO BRAZIL LTDA
Sao Paulo, Brazil
Licensed operations
80%
80%
14.
OLTP LTDA
Rio de Janeiro, Brazil
Licensed operations
80%
80%
5.
INTRALOT GERMANY GMBH
Munich, Germany
Technology and support services
100%
100%
5.
INTRALOT FINANCE UK LTD
Hertfordshire, United Kingdom
Financial services
100%
100%
5.
INTRALOT CAPITAL UK LTD
Hertfordshire, United Kingdom
Financial services
100%
100%
5.
BETA RIAL Sp. Zoo
Warsaw, Poland
Holding company
100%
100%
5.
POLLOT Sp. Zoo
Warsaw, Poland
Holding company
100%
100%
5.
NIKANTRO HOLDINGS Co LTD
Nicosia, Cyprus
Holding company
100%
100%
7.
LOTERIA MOLDOVEI S.A.
Chisinau, Moldova
Licensed operations
47,90%
32,85%
80,75%
5.
INTRALOT BETTING OPERATIONS
(CYPRUS) LTD
Nicosia, Cyprus
Holding company
54,95%
54,95%
5,6.
ROYAL HIGHGATE LTD
Nicosia, Cyprus
Licensed operations
35,08%
35,08%
5.
INTRALOT LEASING NEDERLAND B.V.
Amsterdam, Netherland
Financial services
100%
100%
5.
INTRALOT IRELAND LTD
Dublin, Ireland
Technology and support services
100%
100%
5.
INTRALOT GLOBAL OPERATIONS B.V.
Amsterdam, Netherland
Technology and support services
100%
100%
5.
BIT8 LTD
Valletta, Malta
Technology and support services
100%
100%
5.
INTRALOT ADRIATIC DOO
Zagreb, Croatia
Technology and support services
100%
100%
5.
INTRALOT BETCO EOOD
Sofia, Bulgaria
Technology and support services
100%
100%
5.
INTRALOT CYPRUS GLOBAL ASSETS LTD
Nicosia, Cyprus
Holding company
100%
100%
ΙΝTRALOT HOLDINGS INTERNATIONAL LTD
Nicosia, Cyprus
Holding company
100%
100%
2.
INTRALOT INTERNATIONAL LTD
Nicosia, Cyprus
Technology and support services
100%
100%
3.
INTRALOT OPERATIONS LTD
Nicosia, Cyprus
Technology and support services
100%
100%
2,4.
NETMAN SRL
Bucharest, Romania
Management contracts
100%
100%
2.
INTRALOT BUSINESS DEVELOPMENT LTD
Nicosia, Cyprus
Technology and support services
100%
100%
2,4.
GAMING SOLUTIONS INTERNATIONAL SAC
Lima, Peru
Licensed operations
100%
100%
2.
INTRALOT BETTING OPERATIONS RUSSIA
LTD
Nicosia, Cyprus
Holding company
100%
100%
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
235
II. Equity method
Domicile
Nature of business
% Direct
Part’n
%
Indirect
Part’n
% Total
Part’n
LOTRICH INFORMATION Co LTD
Taipei, Taiwan
Technology and support services
40%
40%
INTRALOT SOUTH AFRICA LTD
Johannesburg, S. Africa
Technology and support services
45%
45%
2,3.
GOREWARD LTD
Taipei, Taiwan
Holding company
38,84%
38,84%
15.
GOREWARD INVESTMENTS LTD
Taipei, Taiwan
Holding company
38,84%
38,84%
15.
PRECIOUS SUCCESS LTD GROUP
Hong Kong, China
Licensed operations
19,03%
19,03%
15.
OASIS RICH INTERNATIONAL LTD
Taipei, Taiwan
Technology and support services
38,84%
38,84%
II. Equity method
Domicile
Nature of business
% Direct
Part’n
%
Indirect
Part’n
% Total
Part’n
16.
WUSHENG COMPUTER TECHNOLOGY
(SHANGHAI) CO LTD
Shanghai, China
Technology and support services
38,84%
38,84%
2.
UNICLIC LTD
Nicosia, Cyprus
Holding company
50%
50%
19.
DOWA LTD
Nicosia, Cyprus
Holding company
30%
30%
5.
KARENIA ENTERPRISES COMPANY LTD
Nicosia, Cyprus
Holding company
50%
50%
INTRALOT DE PERU SAC
Lima, Peru
Licensed operations
20%
20%
Subsidiary of the company:
1: Intralot Global Securities B.V.
6: Intralot Betting Operations (Cyprus) LTD
11: Intralot US Securities B.V.
16: Oasis Rich International LTD
2: Intralot Holdings International LTD
7: Nikantro Holdings Co LTD
12: Intralot US Holdings B.V.
17: Betting Company S.A.
3: Intralot International LTD
8: Intralot Cyprus Global Assets LTD
13: Intralot Inc
18: Intralot Nederland B.V.
4: Intralot Operations LTD
9: Intralot Australia PTY LTD
14: Intralot Do Brazil LTDA
19: Uniclic LTD
5: Intralot Global Holdings B.V.
10: Intralot Iberia Holdings S.A.
15: Goreward LTD
The standalone annual financial statements of the most important subsidiaries of the Group (not listed on a stock exchange) are posted on the INTRALOT
website (www.intralot.com) pursuant to article 1 of the Board of Directors' decision 8/754/14.04.2016 of the Hellenic Capital Market Commission.
The entities Intralot Services S.A., Intralot Jamaica Ltd, Intralot Interactive S.A και Gaming Solutions International SAC are under liquidation process.
On 31/12/2021, the Group or its subsidiaries did not have any significant contractual or statutory restrictions on their ability to access or use the assets
and settle the liabilities of the Group.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
236
The following United Kingdom subsidiaries were exempted until 31/12/2021 from Companies Act 2006
requirements relating the statutory audit of individual company accounts by virtue of Section 479A of
that Act:
Intralot Finance UK Ltd (company number 6451119)
Ilot Capital UK Ltd (company number 9614324)- liquidated on March 2021
Ilot Investments UK Ltd (company number 9614271) - liquidated in July 2021
However, Intralot Finance UK Ltd has been audited in 2018 for IFRS Group reporting purposes.
III. Acquisitions
The Group did not proceed to any acquisition of new entities for 2021.
IV. New Companies of the Group
In February 2021, the Group established Intralot US Securities B.V. (holding company), being a 100%
subsidiary of Intralot Global Holdings B.V., as well as Intralot US Holdings B.V. (holding company), being
a 100% subsidiary of Intralot US Securities B.V.. Also, in March 2021, the Group established Intralot
Capital UK Ltd (finance company), being a 100% subsidiary of Intralot Global Holdings B.V..
V. Changes in ownership percentage / Consolidation method change
Changes in ownership percentage
In August 2021, the transfer from Intralot Global Holdings B.V. of 34,27% of the share capital of Intralot
US Securities B.V. (indirectly parent company of Intralot, Inc.) to holders of existing bonds maturing in
2024 was completed, resulted to a new percentage of indirect participation of the Group amounts to
65,73%. In addition, it continues to maintain control of Intralot, Inc. and company’s management. The
consequence of the above restructuring is the change of the percentage of indirect participation in DC09
LLC to 32,21% and of Intralot US Holdings B.V. and Intralot Tech Single Member S.A. to 65,73%. Also,
during the third quarter of 2021, Intralot SA acquired an additional 80% of Inteltek Internet A.S. from
Iberia Holdings S.A..
Changes in consolidation method
Group Eurobet Ltd
Since the end of March 2020, the conditions under which Eurobet Ltd group was fully consolidated,
according to IFRS 10, in the financial statements of INTRALOT Group have ceased, and the company
since then is consolidated under the equity method. The remaining investment of the Group (49%) in
Eurobet Ltd group was estimated as of zero value. Net losses from Eurobet Ltd group net assets
derecognition, as well as the reclassification of non-controlling interests according to IFRS 10 par. 25,
came up to €563 thousand and are presented in Income Statement of the Group (line “Profit/(loss) after
tax from discontinued operations”), since in December 2020 the Group sold the investment in subsidiary
company Bilot Investment Ltd, parent company of the Group Eurobet Ltd (note 2.20.A.VIII).
VI. Subsidiaries’ Share Capital Increase
During 2021 the Group completed a share capital increase through payment in cash in Netman SRL
amounting €61 thousand, in Nikantro Holdings Co Ltd amounting €653 thousand and in Intralot Adriatic
d.o.o amounting €13 thousand.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
237
VII. Strike off - Disposal of Group Companies
The Group completed the liquidation and strike-off of its subsidiaries Gameway Ltd (January 2021),
Beta Rial Sp.Zoo (January 2021), Pollot Sp.Zoo (February 2021), Ilot Capital UK Ltd (March 2021),
Loteria Moldovei S.A. (June 2021) Ilot Investment UK Ltd (July 2021), Intralot Betting Operations Russia
Ltd (August 2021), Intralot Turkey A.S. (October 2021) , Intralot Beijing Co Ltd (October 2021), Dowa
Ltd (October 2021), Intralot Capital UK Ltd (November 2021) , Nikantro Holdings Co LTD (November
2021), Intralot Leasing Netherland BV (December 2021), Uniclic Ltd (January 2022) και Intralot De
Mexico Ltd (March 2022).
VIII. Discontinued Operations
A) Poland
On March 26, 2019 INTRALOT Group announced that it has reached an agreement with Merkur
Sportwetten GmbH, a subsidiary of the Gauselmann Group based in Espelkamp, Germany to take over
the renowned sports betting company Totolotek S.A. – an INTRALOT subsidiary in Poland. The
aforementioned subsidiary is presented in the geographic operating segment "European Union" (note
2.2). Since, 31/3/2019 the Group's above activities in Poland were classified as assets held for sale and
discontinued operations pursuant to IFRS 5. The transfer of Totolotek S.A. shares was completed at the
end of April 2019 and the Group consolidated it by 30/4/2019. The final consideration for the disposal
of Totolotek S.A. amounted to approximately €8,0 millions, including the contingent consideration, in
case of meeting certain terms and requirements within 2 years, amounting to approximately €1,8
millions on a discounted basis (€2,0 millions in future value). From the above consideration amount
approximately €5,5 millions was paid in the first six-months of 2019 and amount approximately €0,8
million in July 2019. On 31/12/2020 and 31/12/2021 the Group recognized a loss of €996 thousand and
€996 thousand respectively from the non-collection of contingent consideration of Totolotek S.A.
disposal, since the relevant terms and requirements were not met. The above loss is presented in the
Income Statement of the Group (line "Profit / (loss) after taxes from discontinued operations").
B) Peru
On February 2021 INTRALOT announced that it has reached a binding agreement with Nexus Group in
Peru to sell its entire stake of 20% in Intralot de Peru SAC, an associate of INTRALOT Group, which is
consolidated through the Equity method, for a cash consideration of $21millions (twenty-one millions
USD). In addition, the Company has signed a three-year extension of its current contract with Intralot
de Peru SAC through 2024, to continue to provide its gaming technology and support services. The
above associate company is presented under the geographical segment "America" (note 2.2). From
31/12/2020 the above activities of the Group in Peru were classified as discontinued operations pursuant
to IFRS 5 par.8.. Meanwhile, the Group’s investment to Intralot de Peru SAC was classified as at
31/12/2020 to “Assets held for sale”.
The above transaction was completed within February 2021 and the net price after taxes and transaction
costs amounted to $16,2 millions (€13,3 millions).
Below are presented the results of the Group's discontinued operations in Peru (Intralot de Peru SAC)
for the periods 1/1-31/12/2020 and 1/1-31/1/2021 (during 2021 consolidated under the equity method
until 31/1/2021):
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
238
Below are presented the results of the Group's discontinued operations in Peru (Intralot de Peru SAC)
for the period 1/10-31/12/2020 (during 2021 consolidated under the equity method until 31/1/2021):
Below are presented the net cash flows of the discontinued operations of the associate Intralot de Peru
SAC. on a consolidated level:
C) Bulgaria
On 17/12/2020 the Group disposed 100% of subsidiaries Bilot EOOD and Bilot Investment Ltd, that held
by 49% the associates Eurofootball Ltd and Eurobet Ltd group, respectively. The above subsidiaries and
associates are presented under the geographical operating area "European Union" (note 2.2). As of
17/12/2020 the above activities of the Group in Bulgaria have been classified as discontinued operations.
These transactions were completed within December 2020 following the necessary approvals by the
relevant local authorities.
Below are presented the results of the Group's discontinued operations in Bulgaria (Bilot EOOD,
Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd and ICS S.A.) for the period
1/1-17/12/2020 (subsidiaries Bilot EOOD and Bilot Investment Ltd in 2020 were consolidated through
full consolidation method until 17/12/2020, the entity Eurofootball Ltd until 5/12/2019 through full
1/1-31/1/2021
1/1-31/12/2020
Gains / (losses) from consolidations under the equity method
155
842
Profit / (loss) before taxes
155
842
Income Tax
0
0
155
842
Gain/(loss) from disposal of discontinued operations
1.129
0
Relevant taxes
-1.332
0
Expenses and exchange differences occurred from sale
-197
0
Reclassification of exchange differences reserve to Income
Statement
-637
0
Gain/(loss) after taxes from discontinued operations
-882
842
Attributable to:
Equity holders of the parent Company
-882
842
Non-controlling interest
0
0
1/10-31/12/2020
Gains / (losses) from consolidations under the equity method
602
Profit / (loss) before taxes
602
Income Tax
0
602
Gain/(loss) from disposal of discontinued operations
0
Relevant taxes
0
Gain/(loss) after taxes from discontinued operations
602
Attributable to:
Equity holders of the parent Company
602
Non-controlling interest
0
1/1-31/1/2021
1/1-31/12/2020
Operating activities
0
0
Investing activities
13.309
0
Financing activities
0
0
Effect from exchange differences
0
0
Net increase / (decrease) in cash and cash
equivalents for the period
13.309
0
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
239
method and for the period 6/12-31/12/2019 through equity method, and the entities Eurobet Ltd,
Eurobet Trading Ltd and ICS S.A. until end March 2020 through full method):
Below are presented the results of the Group's discontinued operations in Bulgaria (Bilot EOOD,
Eurofootball Ltd, Bilot Investment Ltd, Eurobet Ltd, Eurobet Trading Ltd and ICS S.A.) for the period
1/10-17/12/2020 (subsidiaries Bilot EOOD and Bilot Investment Ltd in 2020 were consolidated through
full consolidation method until 17/12/2020, the entity Eurofootball Ltd until 5/12/2019 through full
method and for the period 6/12-31/12/2019 through equity method, and the entities Eurobet Ltd,
Eurobet Trading Ltd and ICS S.A. until end March 2020 through full method):
1/1-17/12/2020
Sale proceeds
8.656
Expenses
-9.125
Other operating income
0
Other operating expenses
0
Profit / (loss) before taxes, financing and investing results
(EBIT)
-469
Profit / (loss) before taxes, financing, investing results
and depreciation (EBITDA)
-274
Income / (expense) from participations and investments
0
Gain/(loss) from assets disposal, impairment loss and write-off of
assets
48
Interest and similar expenses
-29
Interest and similar income
0
Exchange Differences
1
Gains / (losses) from consolidations under the equity method
0
Profit/(loss) before tax
-449
Income tax
-171
-620
Gain/(loss) from disposal of discontinued operations
-1.069
Relevant taxes
0
Gain/(loss) after taxes from discontinued operations
-1.689
Attributable to:
Equity holders of the parent Company
-1.993
Non-controlling interest
304
1/10-17/12/2020
Sale proceeds
0
Expenses
-35
Other operating income
0
Other operating expenses
0
Profit / (loss) before taxes, financing and investing results
(EBIT)
-35
Profit / (loss) before taxes, financing, investing results and
depreciation (EBITDA)
-30
Income / (expense) from participations and investments
0
Gain/(loss) from assets disposal, impairment loss and write-off of
assets
0
Interest and similar expenses
0
Interest and similar income
0
Exchange Differences
0
Gains / (losses) from consolidations under the equity method
0
Profit/(loss) before tax
-35
Income tax
0
-35
Gain/(loss) from disposal of discontinued operations
-506
Relevant taxes
0
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
240
Below are presented the net cash flows of the discontinued operations in Bulgaria on a consolidated
level:
D) Brazil
On May, 2021, INTRALOT announced that it has reached a binding agreement with “SAGA
CONSULTORIA E REPRESENTAÇÕES COMERCIAIS E EMPRESARIAIS” (“SAGA”) in Brazil to sell its entire
stake in “Intralot do Brasil Comércio de Equipamentos e Programas de Computador LTDA” (“Intralot do
Brasil”), representing 80% of the company’s voting capital. SAGA is the only other shareholder of
“Intralot do Brasil” holding 20% of the company. INTRALOT will continue to provide its gaming
technology to “Intralot do Brasil” following closing of the transaction. The total cash consideration for
the stake sale amounts to EUR 700 thousand (seven hundred thousand EUR). “Intralot do Brasil” owes
by 100% OLTP Ltda subsidiary. The aforementioned subsidiary is presented in the geographic operating
segment "America(note 2.2). Since 31/5/2021 the above activities of the Group in Brazil were classified
as discontinued operations.
The above consideration was paid by €500 thousand within the second half of 2021 and the remaining
amount was paid during the first quarter of 2022. The Group's net assets held for sale (including non-
controlling interest rights and foreign exchange reserve) in Brazil amounted to €8,0 millions as at
31/5/2021 forming a gross loss from disposal of discontinued operations to €7,3 millions. Subtracting
the exchange differences that were reclassified from foreign exchange differences reserve to Group’s
income statement, the net loss from disposal of discontinued operations amounted to €6,7 millions,
which are presented in Group’s Income Statement (line "Profit / (loss) after taxes from discontinued
operations").
The net cash outflow of the Group during the first half of 2021 from Sale of discontinued operations in
Brazil amounted to €0,5 million, consisting of the derecognition of Intralot do Brazil Ltda cash.
Below are presented the results of the Group's discontinued operations in Brazil (Intralot dο Brazil Ltda
and OLTP Ltda) for the period 1/1-31/12/2020 and 1/1- 31/5/2021 (in 2021 were consolidated through
full consolidation method until 31/5/2021):
Gain/(loss) after taxes from discontinued operations
-541
Attributable to:
Equity holders of the parent Company
-541
Non-controlling interest
0
1/1-17/12/2020
Operating activities
1.208
Investing activities
-122
Financing activities
-383
Net increase / (decrease) in cash and cash equivalents
for the period
703
1/1-31/5/2021
1/1-31/12/2020
Sale proceeds
7.225
19.958
Expenses
-7.321
-20.109
Other operating income
47
121
Other operating expenses
-567
-153
Profit / (loss) before taxes, financing and investing results
(EBIT)
-616
-182
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
241
Below are presented the results of the Group's discontinued operations in Brazil (Intralot dο Brazil Ltda
and OLTP Ltda) for the period 1/10-31/12/2020:
Below are presented the net cash flows of the discontinued operations in Brazil on a consolidated level:
Below are presented the earnings / (losses) after taxes per share of the Group's discontinued operations
from subsidiaries Totolotek S.A., Intralot do Brazil Ltda, OLTP Ltda, Bilot EOOD, Bilot Investment Ltd,
Profit / (loss) before taxes, financing, investing results
and depreciation (EBITDA)
-431
342
Income / (expense) from participations and investments
0
0
Gain/(loss) from assets disposal, impairment loss and
write-off of assets
0
-642
Interest and similar expenses
-22
-77
Interest and similar income
4
11
Exchange Differences
-1
-951
Gains / (losses) from consolidations under the equity
method
0
0
Profit/(loss) before tax
-635
-1.841
Income tax
0
0
-635
-1.841
Gain/(loss) from disposal of discontinued operations
-7.306
0
Relevant taxes
0
0
Reclassification of foreign exchange reserve to Income
Statement
595
0
Gain/(loss) after taxes from discontinued operations
-7.346
-1.841
Attributable to:
Equity holders of the parent Company
-7.215
-1.035
Non-controlling interest
-131
-805
1/10-31/12/2020
Sale proceeds
5.915
Expenses
-5.789
Other operating income
30
Other operating expenses
-127
Profit / (loss) before taxes, financing and investing results (EBIT)
29
Profit / (loss) before taxes, financing, investing results and depreciation (EBITDA)
145
Income / (expense) from participations and investments
0
Gain/(loss) from assets disposal, impairment loss and write-off of assets
-645
Interest and similar expenses
-12
Interest and similar income
2
Exchange Differences
78
Gains / (losses) from consolidations under the equity method
0
Profit/(loss) before tax
-548
Income tax
0
-548
Gain/(loss) from disposal of discontinued operations
0
Relevant taxes
0
Reclassification of foreign exchange reserve to Income Statement
0
Gain/(loss) after taxes from discontinued operations
-548
Attributable to:
Equity holders of the parent Company
-208
Non-controlling interest
-340
1/1-31/5/2021
1/1-31/12/2020
Operating activities
-25
402
Investing activities
-519
-46
Financing activities
-61
-107
Net foreign exchange difference
3
-170
Net increase / (decrease) in cash and
cash equivalents for the period
-602
79
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
242
the associate Intralot de Peru SAC, as well as the companies Eurofootball Ltd, Eurobet Ltd, Eurobet
Trading Ltd and ICS S.A., either as subsidiaries or associates:
IX. Companies merge
The Group didn’t absorb any company during 2021.
X. Material partly owned subsidiaries
Provided below is financial information regarding subsidiaries which have significant non-controlling
interests:
Proportion of equity interest held by non-controlling interests:
Subsidiary Name
Country of incorporation
and operation
Geographic
operating segment
31/12/2021
31/12/2020
BILYONER INTERAKTIF HIZMELTER AS GROUP
Turkey
Other Countries
49,99%
49,99%
MALTCO LOTTERIES LTD
Malta
European Union
27%
27%
INTRALOT INC
USA
America
34,27%
0%
TECNO ACCION S.A.
Argentina
America
49,99%
49,99%
TECNO ACCION SALTA S.A.
Argentina
America
49,99%
49,99%
Accumulated balances of material non-controlling interests per subsidiary:
Subsidiary Name
31/12/2021
31/12/2020
BILYONER INTERAKTIF HIZMELTER AS GROUP
2.002
2.866
MALTCO LOTTERIES LTD
3.362
4.183
INTRALOT INC
-234
0
TECNO ACCION S.A.
4.098
3.195
TECNO ACCION SALTA S.A.
1.127
487
Profit allocated to material non-controlling interests per subsidiary:
Subsidiary Name
1/1- 31/12/2021
1/1- 31/12/2020
BILYONER INTERAKTIF HIZMELTER AS GROUP
2.457
2.495
MALTCO LOTTERIES LTD
772
618
INTRALOT INC
561
0
TECNO ACCION S.A.
498
522
TECNO ACCION SALTA S.A.
1.040
517
Below are presented the standalone condensed financial statements per geographical operating area
pursuant to IFRS. This information is based in amounts before elimination entries:
Condensed statement of profit or loss for the period 1/1- 31/12/2021
European Union
MALTCO LOTTERIES LTD
Sales Proceeds
95.384
Gross Profit/ (loss)
8.599
EBITDA
9.527
Profit / (loss) before tax
4.408
Tax
-1.550
Profit / (loss) after tax
2.859
Other comprehensive income after tax
0
Total comprehensive income after tax
2.859
Attributable to non-controlling interest
772
Dividends paid to non-controlling interest
1.593
Earnings/(losses) after tax per share (in €) from
discontinued operations
1/1-31/12/2021
1/1-31/12/2020
-basic
-0,0613
-0,0145
-diluted
-0,0613
-0,0145
Weighted Average number of shares
148.288.968
147.761.688
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
243
Condensed statement of profit or loss for the period 1/1- 31/12/2021
America
TECNO ACCION S.A.
TECNO ACCION SALTA S.A.
INTRALOT INC
Sales Proceeds
16.723
37.680
146.063
Gross Profit/ (loss)
7.572
4.673
45.766
EBITDA
6.801
3.713
69.805
Profit / (loss) before tax
2.223
3.445
20.796
Tax
-1.226
-1.364
137
Profit / (loss) after tax
996
2.081
20.933
Other comprehensive income after tax
-692
-83
5.282
Total comprehensive income after tax
304
1.998
26.215
Attributable to non-controlling interest
152
999
561
Dividends paid to non-controlling interest
1.075
762
0
Condensed statement of profit or loss for the period 1/1- 31/12/2021
Other Countries
BILYONER INTERAKTIF
HIZMELTER AS GROUP
Sales Proceeds
27.835
Gross Profit/ (loss)
23.478
EBITDA
13.135
Profit / (loss) before tax
6.530
Tax
-1.616
Profit / (loss) after tax
4.914
Other comprehensive income after tax
-1.752
Total comprehensive income after tax
3.162
Attributable to non-controlling interest
1.581
Dividends paid to non-controlling interest
3.138
Condensed statement of profit or loss for the period 1/1- 31/12/2020
European Union
MALTCO LOTTERIES LTD
Sales Proceeds
77.514
Gross Profit/ (loss)
7.004
EBITDA
8.488
Profit / (loss) before tax
3.532
Tax
-1.245
Profit / (loss) after tax
2.287
Other comprehensive income after tax
0
Total comprehensive income after tax
2.287
Attributable to non-controlling interest
618
Dividends paid to non-controlling interest
1.350
Condensed statement of profit or loss for the period 1/1- 31/12/2020
America
TECNO ACCION S.A.
TECNO ACCION SALTA S.A.
INTRALOT INC
Sales Proceeds
11.360
22.312
128.062
Gross Profit/ (loss)
4.993
2.278
21.899
EBITDA
4.378
1.774
39.338
Profit / (loss) before tax
1.244
1.496
2.532
Tax
-200
-461
-4.426
Profit / (loss) after tax
1.044
1.035
-1.894
Other comprehensive income after tax
-1.994
-92
-11.371
Total comprehensive income after tax
-950
942
-13.266
Attributable to non-controlling interest
-475
471
-13.266
Dividends paid to non-controlling interest
1.136
754
0
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
244
Condensed statement of profit or loss for the period 1/1- 31/12/2020
Other Countries
BILYONER INTERAKTIF
HIZMELTER AS GROUP
Sales Proceeds
20.684
Gross Profit/ (loss)
15.867
EBITDA
7.756
Profit / (loss) before tax
6.344
Tax
-1.354
Profit / (loss) after tax
4.990
Other comprehensive income after tax
-1.441
Total comprehensive income after tax
3.549
Attributable to non-controlling interest
1.774
Dividends paid to non-controlling interest
0
Condensed statement of financial position as at 1/1- 31/12/2021
European Union
MALTCO LOTTERIES LTD
Non-current assets
2.816
Current assets
18.271
Non-current liabilities
-141
Current liabilities
-8.494
Total equity
12.452
Attributable to:
Equity holders of parent
9.090
Non-controlling interests
3.362
Condensed statement of financial position as at 1/1- 31/12/2021
America
TECNO ACCION S.A.
TECNO ACCION SALTA S.A.
INTRALOT INC
Non-current assets
4.144
235
175.633
Current assets
8.062
4.510
90.250
Non-current liabilities
-638
-37
-242.384
Current liabilities
-3.665
-2.157
-20.757
Total equity
7.903
2.550
2.741
Attributable to:
Equity holders of parent
3.952
1.275
1.802
Non-controlling interests
3.951
1.275
939
Condensed statement of financial position as at 1/1- 31/12/2021
Other Countries
BILYONER INTERAKTIF HIZMELTER AS
GROUP
Non-current assets
32.648
Current assets
11.827
Non-current liabilities
-446
Current liabilities
-40.025
Total equity
4.004
Attributable to:
Equity holders of parent
2.002
Non-controlling interests
2.002
Condensed statement of financial position as at 1/1- 31/12/2020
European Union
MALTCO LOTTERIES LTD
Non-current assets
7.781
Current assets
16.416
Non-current liabilities
-524
Current liabilities
-8.180
Total equity
15.493
Attributable to:
Equity holders of parent
11.310
Non-controlling interests
4.183
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
245
Condensed statement of financial position as at 1/1- 31/12/2020
America
TECNO ACCION S.A.
TECNO ACCION SALTA S.A.
INTRALOT INC
Non-current assets
3.756
259
176.512
Current assets
5.658
2.042
59.541
Non-current liabilities
-576
0
-30.293
Current liabilities
-2.741
-1.032
-68.153
Total equity
6.096
1.269
137.606
Attributable to:
Equity holders of parent
3.049
635
137.606
Non-controlling interests
3.048
634
0
Condensed statement of financial position as at 1/1- 31/12/2020
Other Countries
BILYONER INTERAKTIF HIZMELTER
AS GROUP
Non-current assets
2.561
Current assets
14.576
Non-current liabilities
-551
Current liabilities
-10.854
Total equity
5.732
Attributable to:
Equity holders of parent
2.866
Non-controlling interests
2.865
Condensed cash flow information for the year ending 1/1- 31/12/2021
European Union
MALTCO LOTTERIES LTD
Operating activities
8.673
Investing activities
-324
Financing activities
-6.238
Effect of exchange differences
0
Net increase / (decrease) in cash and cash equivalents
2.111
Condensed cash flow information for the year ending 1/1- 31/12/2021
America
TECNO ACCION S.A.
TECNO ACCION SALTA S.A.
INTRALOT INC
Operating activities
5.131
2.863
49.655
Investing activities
-1.069
259
-11.610
Financing activities
-3.071
-1.874
-5.370
Effect of exchange differences
-1.754
-120
2.299
Net increase / (decrease) in cash and
cash equivalents
-762
1.128
34.975
Condensed cash flow information for the year ending 1/1- 31/12/2021
Other Countries
BILYONER INTERAKTIF HIZMELTER
AS GROUP
Operating activities
6.745
Investing activities
-1.224
Financing activities
-5.775
Effect of exchange differences
-4.182
Net increase / (decrease) in cash and cash
equivalents
-4.436
Condensed cash flow information for the year ending 1/1- 31/12/2020
European Union
MALTCO LOTTERIES LTD
Operating activities
7.933
Investing activities
-98
Financing activities
-5.303
Effect of exchange differences
0
Net increase / (decrease) in cash and cash equivalents
2.532
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
246
Condensed cash flow information for the year ending 1/1- 31/12/2020
America
TECNO ACCION S.A.
TECNO ACCION SALTA S.A.
INTRALOT INC
Operating activities
2.390
578
39.030
Investing activities
-746
109
-12.053
Financing activities
-1.634
-1.216
-17.764
Effect of exchange differences
119
-857
-791
Net increase / (decrease) in cash
and cash equivalents
128
-1.387
8.423
Condensed cash flow information for the year ending 1/1- 31/12/2020
Other Countries
BILYONER INTERAKTIF
HIZMELTER AS GROUP
Operating activities
11.625
Investing activities
-128
Financing activities
-1.130
Effect of exchange differences
-1.759
Net increase / (decrease) in cash and cash equivalents
8.607
XI. Investments in companies consolidated with the equity method
i) Investment in associates
The Group has significant influence over the below associates. The Group consolidates these associate
companies with the equity consolidation method. The following table illustrates the summarized financial
information of the Group’s investment in associates:
GROUP INVESTMENT IN ASSOCIATES AND JOINT VENTURES
Country
31/12/2021
31/12/2020
LOTRICH INFORMATION Co LTD
Taiwan
40%
40%
INTRALOT SOUTH AFRICA LTD
S. Africa
45%
45%
Goreward LTD Group
Taiwan
38,84%
38,84%
KARENIA ENTERPRISES COMPANY LTD
Cyprus
50%
50%
Condensed statement of financial
position as at 31/12/2021
LOTRICH INFORMATION Co LTD
KARENIA ENTERPRISES
COMPANY LTD
Non-current assets
12
13.500
Current assets
19.686
6
Non-current liabilities
0
0
Current liabilities
-2.402
-111
Total equity
17.296
13.395
Group’s investment book value
6.733
6.696
Condensed statement of financial
position as at 31/12/2020
LOTRICH INFORMATION Co LTD
KARENIA ENTERPRISES
COMPANY LTD
Non-current assets
13
13.500
Current assets
17.332
2
Non-current liabilities
0
0
Current liabilities
-1.696
-75
Total equity
15.648
13.428
Group’s investment book value
6.074
6.713
Condensed statement of profit or loss
for the period 1/1- 31/12/2021
LOTRICH INFORMATION Co LTD
KARENIA
ENTERPRISES
COMPANY LTD
Sales Proceeds
6.562
0
Gross Profit/ (loss)
1.570
0
EBITDA
708
-26
Profit / (loss) before tax
708
-28
Tax
-142
0
Profit / (loss) after tax
567
-28
Other comprehensive income after tax
1.711
0
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
247
Total comprehensive income after tax
2.278
-28
Group's share of total comprehensive
income of the period after taxes
911
-14
Dividends received by the Group from the
associates
685
Condensed statement of profit or loss
for the period 1/1- 31/12/2020
LOTRICH INFORMATION Co LTD
KARENIA ENTERPRISES
COMPANY LTD
Sales Proceeds
7.327
0
Gross Profit/ (loss)
1.707
0
EBITDA
934
-32
Profit / (loss) before tax
868
-33
Tax
-179
0
Profit / (loss) after tax
690
-33
Other comprehensive income after tax
-427
0
Total comprehensive income after tax
263
-33
Group's share of total comprehensive
income of the period after taxes
105
-17
Dividends received by the Group from the
associates
-171
0
Reconciliation of the condensed
financial statements with the carrying
amount of the investment
LOTRICH INFORMATION Co LTD
KARENIA
ENTERPRISES
COMPANY LTD
Carrying amount of Investment as of
31/12/2019
7.379
6.731
Profit / (Loss) after taxes of the period
276
-17
Other Comprehensive Income after tax of the
period
-171
Dividends
-1.411
Transfer to Assets Held for Sale
Impairment provision
Other
-1
Carrying amount of Investment as of
31/12/2020
6.074
6.713
Profit / (Loss) after taxes of the period
227
-14
Other Comprehensive Income after tax of the
period
685
0
Dividends
-252
0
Transfer to Assets Held for Sale
Impairment provision
Other
-2
Carrying amount of Investment as of
31/12/2021
6.733
6.696
ii) Investment in Joint Ventures
In addition, the Group owns 50% of Karenia Enterprises Co Ltd, a Cyprus-based joint venture, and
consolidates it from January 2018 using the equity method applying IFRS 11 "Joint Arrangements”. This
company participates with 30% stake in “ATHENS RESORT CASINO SA HOLDINGS", which owns 51%
of the Greek Casino Parnitha SA."ATHENS RESORT CASINO SA HOLDINGS" is not consolidated by the
Intralot Group and Karenia Enterprises Co Ltd.’s investment is valued at cost pursuant to IFRS 9.
Condensed statement of financial position
as at 31/12/2021:
Karenia Enterprises
Co Ltd
Non-current assets
13.500
Current assets
6
Long-term liabilities
0
Short-term liabilities
-111
Total Equity
13.395
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
248
Condensed statement of profit or loss for the
period 1/1-31/12/2021:
Karenia
Enterprises Co Ltd
Sale Proceeds
0
Gross Profit / (loss)
0
Profit / (loss) before taxes, financing, investing results
and depreciation (EBITDA)
-26
Profit / (loss) before tax
-28
Tax
0
Profit/ (loss) after tax
-28
Other comprehensive income after tax
0
Total comprehensive income after tax
-28
Total comprehensive income after tax of the
Group
-14
Joint ventures’ dividends received from Group
0
Condensed statement of profit or loss for the
period 1/1-31/12/2020:
Karenia
Enterprises Co Ltd
Sale Proceeds
0
Gross Profit / (loss)
0
Profit / (loss) before taxes, financing, investing results
and depreciation (EBITDA)
-32
Profit / (loss) before tax
-33
Tax
0
Profit/ (loss) after tax
-33
Other comprehensive income after tax
0
Total comprehensive income after tax
-33
Total comprehensive income after tax of the
Group
-17
Joint ventures’ dividends received from Group
0
Reconciliation of condensed financial statements
presented in the book value of investments
Karenia
Enterprises Co Ltd
Investment’s book value as at 31/12/2019:
6.731
Profit / (loss) after tax of the period
-17
Other
-1
Investment’s book value as at 31/12/2020:
6.713
Profit / (loss) after tax of the period
-14
Other
-2
Investment’s book value as at 31/12/2021:
6.696
B. REAL LIENS
A Group subsidiary in Malta has banking facility amounting €4,3 millions, for issuing bank letters of
guarantee. This facility is secured by an initial general mortgage on all the subsidiary’s present and
future assets (on 31/12/2021 the letters of guarantee used amounted to €4,0 millions). Also, a
subsidiary of the Group in Netherlands has a banking facility amounting €18,0 millions for revolving
Group’s investment book value
6.696
Condensed statement of financial position
as at 31/12/2020:
Karenia Enterprises
Co Ltd
Non-current assets
13.500
Current assets
2
Long-term liabilities
0
Short-term liabilities
-75
Total Equity
13.427
Group’s investment book value
6.713
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
249
facility and issuing bank letters of guarantee, with relevant securities on financial assets (on 31/12/2021
the utilized letters of guarantee amounted to €10,2 millions).
There are no other restrictions than the above, in the ownership or transfer or other encumbrances on
the Group's property.
In the Group Statement of Financial Position (line “Trade and other short-term receivables”) of
31/12/2021 are included restricted bank deposits as security coverage for banking facilities amounting
€8.253 thousand (31/12/2020: €4.929 thousand) and other restricted bank deposits amount to €125
thousand (31/12/2020: €366 thousand). Respectively, for the Company on 31/12/2021 are included
restricted bank deposits as security coverage for banking facilities amounting €4.536 thousand
(31/12/2020: €1.650 thousand) and other restricted bank deposits amount to €122 thousand
(31/12/2020: €124 thousand).
C. PROVISIONS
GROUP
Litigation
cases ¹
Unaudited
fiscal years
and tax audit
expenses ²
Other
provisions ³
Total
provisions
Period opening balance
4.303
6.630
2.436
13.370
Period additions
113
27
6.927
7.067
Utilized provisions
-411
0
-80
-491
Change of consolidation method
15
0
-15
0
Foreign exchange differences
-3
0
-124
-127
Period closing balance
4.017
6.658
9.144
19.819
Long-term provisions
3.962
6.658
4.569
15.189
Short-term provisions
55
0
4.576
4.630
Total
4.017
6.658
9.144
19.819
¹ Relate to litigation cases as analyzed in note 2.21.A.
² Relate to provisions for the coverage of differences from future audits for income taxes and other taxes. It is expected
to be used in the next 1-3 years.
³ Relate to provisions for risks none of which are individually material to the Group except from provisions for additional
fees (bonus) and other employee benefits of the Group amounting to €1.429 thousand as well as provisions amounting
to €1.640 thousand for earned winnings which relate to sports betting prices and guaranteed future numerical games
jackpots. The Other provisions are expected to be used in the next 1-6 years.
COMPANY
Litigation
cases ¹
Unaudited
fiscal years
and tax audit
expenses ²
Other
provisions ³
Total
provisions
Period opening balance
3.991
6.630
0
10.622
Utilized provisions
-117
0
0
-117
Foreign exchange differences
0
0
0
Period closing balance
3.874
6.630
0
10.504
Long-term provisions
3.947
6.630
0
10.577
Short-term provisions
40
0
0
40
Total
3.987
6.630
0
10.617
¹ Relate to litigation cases as analyzed in note 2.21.A
² Relate to provisions for the coverage of differences from future audits for income taxes and other taxes. It is
expected to be used in the next 1-3 years.
D. PERSONNEL EMPLOYED
The number of employees of the Group on 31/12/2021 amounted to 1.840 persons
(Company/subsidiaries 1.803 and associates 37) and the Company's to 427 persons. At the end of 2020,
the number of employees of the Group amounted to 3.447 persons (Company/subsidiaries 2.046 and
associates 1.401) and the Company's to 595 persons.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
250
E. RELATED PARTY DISCLOSURES
Intralot SA purchases goods and services and/or provides goods and services to various related
companies, in the ordinary course of business. These related companies consisting of subsidiaries,
associates or other related companies which have common ownership and / or management with Intralot
SA.
Below is a condensed report of the transactions for 2021 and the balances on 31/12/2021 of other related
parties:
Amounts reported in thousands of €
GROUP
COMPANY
(total operations)
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Income
-from subsidiaries
0
0
51.201
41.334
-from associates and joint ventures
2.181
4.546
2.433
6.272
-from other related parties
437
382
43
6
0
0
0
0
Expenses
-to subsidiaries
0
0
32.356
26.173
-to associates and joint ventures
0
10
0
0
-to other related parties
6.112
10.263
3.566
5.130
0
0
0
0
Receivables
-from subsidiaries
0
0
48.866
69.294
-from associates and joint ventures
4.917
5.069
4.872
5.026
-from other related parties
12.366
10.107
1.877
1.798
0
0
0
0
Payables
-to subsidiaries
0
0
281.754
331.715
-to associates and joint ventures
0
466
0
466
-to other related parties
7.922
7.992
3.140
4.868
0
0
0
0
BoD and Key Management Personnel transactions and fees
7.605
8.643
5.206
6.293
BoD and Key Management Personnel receivables
32
0
0
0
BoD and Key Management Personnel payables
360
343
263
240
(Α) The respective amounts are analyzed as follows:
Total due from related parties
17.316
15.177
55.615
76.118
(less) long term portion (note 2.19)
695
1.408
15
28
Short term receivables from related parties (note 2.20)
16.621
13.769
55.600
76.090
(Β) The respective amounts are analyzed as follows:
Total due to related parties
8.282
8.801
285.157
337.289
(less) long term debt
4.611
1.070
250.648
309.088
(less) long term liabilities (note 2.28)
0
0
0
0
Short term payables to related parties (note 2.29 & 2.25)
3.671
7.731
34.509
28.201
Sales and services to related parties are made at normal market prices. Outstanding balances at year end
are unsecured and settlement occurs in cash. No guarantees have been provided or received for the above
receivables.
In 2021, the Company made provisions of €131 thousand concerning an estimate of reduction of the
recoverable value of receivables from subsidiaries. . The accumulated provisions of 31/12/2021 amounted
to €0,2 million (31/12/2020: €0,4 million).
2.32 CONTINGENT LIABILITIES, ASSETS AND COMMITMENTS
A. LITIGATION CASES
a. In Colombia, INTRALOT, on 22nd July 2004, entered into an agreement with an entity called Empresa
Territorial para la salud (“Etesa”), under which it was granted with the right to operate games of chance
in Colombia. In accordance with terms of the abovementioned agreement, INTRALOT has submitted an
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
251
application to initiate arbitration proceedings against Etesa requesting to be recognized that there has
been a disruption to the economic balance of abovementioned agreement to the detriment of INTRALOT
and for reasons not attributable to INTRALOT and that Etesa to be compelled to the modification of the
financial terms of the agreement in the manner specified by INTRALOT as well as to pay damages to
INTRALOT (including damages for loss of profit) or alternatively to terminate now the agreement with
no liability to INTRALOT. The arbitration court adjudicated in favor of Etesa the amount of 23,6 billion
Colombian pesos (approx. €5,1m). The application for annulment of the arbitration award filed by
INTRALOT before the High Administrative Court was rejected. The Company filed a lawsuit before the
Constitutional Court which was rejected. On 31 August 2016, an application was served to the Company
requesting to render the abovementioned arbitration decision as executable in Greece which was heard
before the Athens One-Member First Instance Court and the decision issued accepted it. The Company
filed an appeal against this decision which was rejected by the Athens Court of Appeals. The Company
filed, before the Supreme Court, a cassation appeal against the decision of the Athens Court of Appeals
which was rejected. The Company has created relative provision in its financial statements part of which
(€2,2m) has already been used for the payment to Etesa of a letter of guarantee amounting to
7.694.081.042 Colombian pesos.
b. Against the subsidiary Intralot Holdings International Ltd., a shareholder of LOTROM SA and against
LOTROM SA, another shareholders of LOTROM SA, Mr. Petre Ion filed a lawsuit before the competent
court of Bucharest requesting that Intralot Holdings International Ltd to be obliged to purchase his
shares in LOTROM SA for €2.500.000 and that LOTROM SA to be obliged to register in the shareholders
book such transfer. Following the hearing of 28th September 2010 a decision of the court was issued
accepting the lawsuit of the plaintiff. Intralot Holdings International Ltd and LOTROM SA filed an appeal
which was rejected. The abovementioned companies further filed a recourse before the Supreme Court
which was heard and rejected. Mr. Petre Ion initiated an enforcement procedure of the above decision
in Romania. The companies will exercise legal means against the enforcement procedure according to
the provisions of the Romanian laws.
c. Mr. Petre Ion filed in Romania a lawsuit against Intralot Holdings International Ltd and LOTROM
requesting to issue a decision to replace the share purchase contract of its shares in LOTROM SA for
€2.500.000 (for which he had filed the above lawsuit) in order to oblige Intralot Holdings International
Ltd a) to pay the amount of €400.000 as tax on the above price, b) to sign on the shareholders book
for the transfer of the shares, c) to pay the price of the transfer and the legal costs. The Court of First
Instance rejected Mr. Petre Ion’s lawsuit. Mr. Petre Ion filed an appeal which was heard on 4 November
2014 and was partially accepted. The Company filed an appeal against this decision which was rejected.
Following postponements, the case was heard on 10 June 2016 and the respective first instance decision
was issued on 19 July 2016; the lawsuit against LOTROM was rejected while it was accepted partially in
respect to its part filed against Intralot Holdings International Ltd., obligating the latter to pay the
amount of the purchase and the legal expenses. Both Intralot Holdings International Ltd. and Mr. Petre
Ion filed appeals against this decision which was heard and were rejected. The decision became final,
while the application for cassation filed by Intralot Holdings International Ltd was rejected. While since
2018 there has been no action by the plaintiff, recently it was notified to Intralot Holdings International
Ltd. that, following a unilateral petition of the plaintiff (ex parte procedure, i.e. without Intralot Holdings
International Ltd. to be summoned and represented), a decision was issued by the Cypriot court
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
252
appointing Bank of Cyprus as custodian of the amount of the account held by Intralot Holdings
International Ltd. in that bank, as precautionary measure to ensure the payment of the claim of the
plaintiff pursuant to the decision of the courts of Romania. This decision has been rendered enforceable
in Cyprus by the local court in October 2020 also without any knowledge of Intralot Holdings
International Ltd. since the same unilateral procedure ex parte had been followed by the plaintiff. After
being informed on the above, Intralot Holdings International Ltd. objected before the court of Cyprus
which, on 23 July 2021, didn’t accept its arguments. Intralot Holdings International Ltd. filed an appeal
against this decision before the competent courts of Cyprus which is pending. Intralot Holdings
International Ltd. considers that has valid grounds to deny the execution of the decision in Cyprus.
d. In August 2012, two British Virgin Island companies filed a Complaint in the United States Bankruptcy
Court Southern District of Florida, Miami Division, against numerous defendants, including Supreme
Ventures Limited (“SVL”), a publicly traded gaming company listed on the Jamaican Stock Exchange in
which INTRALOT was holding until 10.10.2017 an indirect shareholding interest. Notably, as per SVL,
the lawsuit is based on the same claims, towards third parties, initial shareholders and/or directors of
SVL, or not, which were brought in, and were rejected by the Jamaican courts, first by the Supreme
Court and then again by the Court of Appeals. INTRALOT is named as a «Relief Defendant» which means
that INTRALOT is not alleged to have been part - directly or indirectly - of any wrongdoing, since the
alleged by the plaintiffs acts are made before the acquisition of SVL’s shares by INTRALOT through the
Jamaican Stock Exchange. The lawsuit was rejected by the Court. The other party filed an appeal which
is pending. Recently the litigant parties submitted to the Court a joint stipulation of dismissal of the case
the Court’s decision is expected.
e. On 30 July 2012, Intralot filed before the Athens Multi-member Court of First Instance a lawsuit
against the company “Hellenic Organization of Horse Racing S.A.” (ODIE) requesting the payment of
the amount of €2.781.381,15 relating to system maintenance services provided but not paid. The case
was heard on 6th May 2015 and a decision was issued accepting Intralot’s lawsuit in full. ODIE filed an
appeal against this decision which has been heard on 1 November 2018 before the Athens Court of
Appeal which was rejected with the decision no. 3153/2019 of the Athens Court of Appeal. The decision
has not been further appealed and, therefore, has become final and irrevocable. Moreover, Intralot filed
a recourse to the arbitration panel on 13 August 2012 against the same company ODIE requesting the
payment of the amount of €9.551.527,34 relating to operational services of integrated system provided
but not paid. The arbitration was concluded on 1st March 2013 and the arbitration decision no 27/2013
was issued vindicating Intralot and compelling ODIE to pay to Intralot the total amount requested
(€9.551.527,34). In order to secure its claims, Intralot:
a) by virtue of the above arbitration decision, has already recorded on the mortgage books of the Land
Registry Office of Kropia a mortgage on a land property of ODIE and specifically on the property where
the Horse Racetrack of Athens in Markopoulo Attica is operating, and on the buildings thereupon, for an
amount of €11.440.655,35.
b) by virtue of the decision no 2209/2014 of the Athens Single Member Court of First Instance, has
already recorded on the mortgage books of the Land Registry Office of Kropia, a note of mortgage on
the same real estate of ODIE for an amount of €9.481.486,11, which, following the issue of the above
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ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
253
decision no. 3153/2019 of the Athens Court of Appeal, partially turned to a mortgage for the total
amount adjudicated, i.e. for the amount of €2.781.381,15.
c) advanced the procedure of compulsory execution against ODIE in order to execute its claims.
Furthermore, on 20 March 2014, Intralot filed before the Athens Multi-member Court of First Instance
a lawsuit against ODIE requesting the payment of the amount of €8.043.568,69 which is owed to it
pursuant to the “Agreement of Maintenance and Operation of the System of the Mutual Betting on Horse
Races of ODIE” dated 6 March 2012. The lawsuit was heard on 4 October 2017 and the decision issued
accepted the lawsuit. ODIE filed an appeal which was rejected by the Athens Court of Appeals in
December 2019. The decision is final. No petition for cassation has been notified to the Company.
The confiscation on the above land property of ODIE in Markopoulo Attica imposed in the frame of the
abovementioned procedure of compulsory execution against ODIE, was reversed with the consent of
Intralot on 15 December 2015 in execution of the terms of the agreement dated 24 November 2015
between Intralot and ODIE which settled the payment of all above claims of Intralot. Pursuant to this
agreement, ODIE assigned to Intralot 2/3 of the rent which it will receive from the lease agreement
relating to that real estate to the company “Ippodromies SA”. The payment of the assigned rent amounts
has already been started.
Intralot filed before the Athens Multi Member Court of First Instance a lawsuit dated 8.3.2021 against
ODIE (under liquidation), the company “Hellenic Republic Asset Development Fund SA” (HRADF) and
the Greek State, requesting to be recognized that the above agreement is binding, in addition to ODIE,
for HRADF and the Greek State, to oblige all defendants to pay to INTRALOT €487.079,32 and to be
recognized that all defendants are obliged to pay to INTRALOT the total amount of €4.747.489,91, while
HRADF and the Greek State the amount of €12.676.846,6. The case is pending. The hearing has been
scheduled for 22 September 2022.
f. A former officer of the Company filed a lawsuit before the Athens First Instance Court requesting to
be recognized that the Company had to pay him the amount of €121.869,81 as non-paid wages. The
decision issued partially accepted the lawsuit in relation to the amount of €80.685,42. Both parties have
filed appeals which are on 24 November 2020. The decision issued by the Athens Court of Appeals
accepts the appeal of the Company and totally rejects the appeal of the plaintiff. The decision is final.
On 4 March 2022 a petition for cassation has been served to the Company which is scheduled to be
heard before the Supreme Court on 25 October 2022.
g. In Cyprus, the National Betting Authority had suspended the Class A license of the company Royal
Highgate Pcl Ltd. in which the Company has an indirect participation of approx. 35,08%, initially for a
period of two months, alleging non-compliance of Royal Highgate Pcl Ltd. with specific terms of the
license. Royal Highgate Pcl Ltd. considering that those requested by the National Betting Authority are
beyond the provisions of the law, filed a recourse before the competent administrative court of Nicosia
which was heard on 30 March 2018. The decision issued rejects the recourse for typical reasons. Royal
Highgate Pcl Ltd. filed an appeal against this decision which has been heard, following postponement,
on 8 March 2021 and was rejected for the same typical reasons. In parallel, Royal Highgate Pcl Ltd. has
filed three more recourses against decisions of the National Betting Authority relating to the suspension
of the license of Royal Highgate Pcl Ltd. which are all scheduled for hearing, following postponements,
on 11 April 2022. National Betting Authority started the procedure for the revocation of the license of
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
254
Royal Highgate Pcl Ltd. and the latter submitted its arguments on 30 November 2018 without any further
actions from the National Betting Authority. On 31 December 2018, the contractual term of the license
of Royal Highgate Pcl Ltd. expired.
h. In USA, in South Carolina State, class actions were filed against the local lottery South Carolina
Education Lottery Commission and the subsidiary Intralot Inc. for breach of contract with the allegation
that because of malfunctioning of the system there were winning tickets which were not paid and
claiming a total compensation of approx. 35 million USD (€30,9 million). The local court accepted Intralot
Inc.’s motions to dismiss in two lawsuits, holding that the plaintiffs were required to exhaust
administrative remedies and failed to do so. The other side filed appeals against such decisions which
are pending. The third similar lawsuit was rejected finally by the court. The Group’s management, relying
on local expert legal counsels’ opinion, considers that the lawsuits have low probability of success. It is
noted that with regards to such cases, the Group has a respective insurance coverage.
i. A former employee of the Company filed two lawsuits before the Athens First Instance Court
requesting, with the first one, the payment of the amount of €133.179,47 for unpaid salaries and
€150.000 as compensation for moral damages and, with the second one, the amount of €259.050 for
overdue salaries calculated until 3 December 2019 and €150.000 as compensation for moral damages.
The first lawsuit was heard on 28 February 2018 and the decision issued partially accepted the lawsuit
in relation to the amount of €46.500,82. Both parties filed appeals against this decision which were
heard on 22 September 2020 and the decision issued orders the re-hearing of the case after the
submission of further evidences. A new hearing date was scheduled for 25 May 2022. The second lawsuit
has been scheduled for hearing, following postponements, on 3 November 2022. The Company had
made respective provisions to its financial statements.
j. On 1 April 2019, the Company filed a Request for Arbitration before the ICC International Court of
Arbitration requesting to be declared that the defendant Sisal SpA has breached a contract signed with
Intralot by using, in Morocco, terminals and the software embedded therein. A decision of the ICC was
issued declaring that Sisal SpA has breached the terms of the abovementioned contract and specifically
that it has breach the intellectual property rights of Intralot with regards to the software TAPIS
embedded in the terminals which Sisal SpA installed in Morocco, it ordered to cease supplying such
terminals in Morocco and also ordered their removal until 31 December 2021, it rejected the requests
for compensation against the respondent and ordered Sisal SpA to pay part of the costs and expenses
of the arbitration.
k. In Morocco, “La Société de Gestion de la Loterie Nationale” (“SGLN”) filed a lawsuit against the
Company and its subsidiary Intralot Maroc claiming that it exercised unilaterally its option to transfer to
it the equipment of Intralot which was used jointly by SGLN and the other local lottery “La Marocaine
des Jeux et des Sports” (“MDJS”) and, because of Intralot’s denial, it suffered damages in the amount
of MAD 18.000.000 (€1.713.290,37) which corresponds to the value of the equipment, while,
additionally, it requests MAD 34.000.000 (€3.236.215,15) as loss of profit. It is also requesting the call
of the letter of guarantee amounting to MAD 30.000.000 (€2.855.483,96). It is noted that according to
the terms of the Intralot’s contracts with the two lotteries SGLN & MDJS, the option for the transfer of
the equipment as well as any call of the letters of guarantee can only be exercised with a joint request
of both entities SGLN & MDJS. The case was scheduled to be heard, following postponements, on 7 June
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
255
2021 when a report of a judicial expert was submitted to the court and the court ordered, once more,
the submission of a third expert’s report which was submitted and a new hearing date has been
scheduled for 7 April 2022.
l. In Malta a lawsuit was filed against the subsidiary Maltco Lotteries Ltd. and the company ATG, having
its registered offices in Sweden, by a player of horse races betting games who is requesting the payment
of the amount of approx. €1,5m as non-paid winnings. The specific betting game is conducted by the
company ATG which refused the payment of the requested amount due to breach of the gaming rules
by the player. The case has been scheduled for hearing, following postponement, on 3 May 2022.
m. In U.S.A. the funds Northlight European Fundamental Credit Fund, HCN LP and Bardin Hill Investment
Partners LP, claiming holding notes due in 2024 amounting approximately to 3,5%-4%, filed a complaint
on 29 July 2021 before the US District Court for the Southern District of New York against Intralot and
companies of its group (Intralot Capital Luxembourg S.A., Intralot Global Holdings B.V., Intralot, Inc.
and Intralot US Securities, B.V.), requesting to be declared that the exchanges of notes due in 2021
and in 2024 breach certain provisions of the indenture agreement governing the notes maturing in 2024,
as well as the New York legislation. The plaintiffs amended their complaint by on January 31, 2022 by
adding new plaintiffs (Halcyon Eversource Credit LLC, Halcyon Vallee Blanche Master Fund LP, HDML
Fund II LLC, CQS Credit Opportunities Master Fund, CQS ACS Fund, CQS Directional Opportunities
Master Fund Ltd & BIWA Fund Ltd.) and new defendants (Intralot U.S. Holdings BV and The Law
Debenture Trust Corporation P.L.C.). On March 31, 2022, Intralot requested from the court to consider
a motion to dismiss. A Plaintiffs’ motion seeking a temporary restraining order to enjoin the notes
exchanges was denied by the court on 2 August 2021 and the exchanges of notes due in 2021 and in
2024 were completed.
Until April 4, 2022, apart from the legal issues for which a provision has been recognized, the Group
Management estimates that the rest of the litigations will be finalized without a material effect on the
Group’s and the Company’s financial position and results.
B. FISCAL YEARS UNAUDITED BY THE TAX AUTHORITIES
Ι) COMPANY AND SUBSIDIARIES
COMPANY
YEARS
COMPANY
YEARS
INTRALOT S.A.
2016-2021
INTRALOT BEIJING Co LTD
-
BETTING COMPANY SA
2016-2021
TECNO ACCION S.A.
2015-2021
BETTING CYPRUS LTD
2016-2021
TECNO ACCION SALTA S.A.
2015-2021
INTRALOT IBERIA HOLDINGS SA
2017-2021
MALTCO LOTTERIES LTD
2016-2021
INTRALOT JAMAICA LTD
2010-2021
INTRALOT NEW ZEALAND LTD
2013 & 2017-2021
INTRALOT TURKEY A.S.
2016-2021
INTRALOT GERMANY GMBH
2018-2021
INTRALOT DE MEXICO LTD
2015-2021
INTRALOT FINANCE UK LTD
2020-2021
INTRALOT CHILE SPA
2019-2021
INTRALOT CAPITAL UK LTD
-
INTELTEK INTERNET AS
2017-2021
NIKANTRO HOLDINGS Co LTD
2016-2021
INTRALOT SERVICES S.A.
2016-2021
INTRALOT BETTING OPERATIONS (CYPRUS) LTD
2016-2021
BILYONER INTERAKTIF HIZMELTER AS GROUP
2020-2021
ROYAL HIGHGATE LTD
2016-2021
INTRALOT MAROC S.A.
2018-2021
INTRALOT LEASING NEDERLAND B.V.
2013-2021
INTRALOT INTERACTIVE S.A.
2016-2021
INTRALOT IRELAND LTD
2016-2021
INTRALOT GLOBAL SECURITIES B.V.
2013-2021
INTRALOT GLOBAL OPERATIONS B.V.
2016-2021
INTRALOT CAPITAL LUXEMBOURG S.A.
2016-2021
BIT8 LTD
2016-2021
INTRALOT FINANCE LUXEMBOURG S.A. ¹
2018
INTRALOT ADRIATIC DOO
2015-2021
INTRALOT GLOBAL HOLDINGS B.V.
2013-2021
INTRALOT BETCO EOOD
2020-2021
INTRALOT US SECURITIES B.V.
2021
INTRALOT CYPRUS GLOBAL ASSETS LTD
2016-2021
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
256
INTRALOT US HOLDINGS B.V.
2021
ΙΝTRALOT HOLDINGS INTERNATIONAL LTD
2016-2021
INTRALOT INC
2018-2021
INTRALOT INTERNATIONAL LTD
2016-2021
DC09 LLC
2018-2021
INTRALOT OPERATIONS LTD
2016-2021
INTRALOT TECH SINGLE MEMBER S.A.
2019-2021
NETMAN SRL
2014-2021
INTRALOT AUSTRALIA PTY LTD
2017-2021
INTRALOT BUSINESS DEVELOPMENT LTD
2016-2021
INTRALOT GAMING SERVICES PTY
2017-2021
GAMING SOLUTIONS INTERNATIONAL SAC
2017-2021
INTRALOT NEDERLAND B.V.
2010-2021
INTRALOT BETTING OPERATIONS RUSSIA LTD
2012-2021
INTRALOT BENELUX B.V.
2018-2021
INTRALOT DE COLOMBIA (BRANCH)
2016-2021
LOTROM S.A.
2014-2021
1
The company INTRALOT FINANCE LUXEMBOURG S.A. have been merged with INTRALOT CAPITAL LUXEMBOURG S.A..
In Bilyoner İnteraktif Hizmetler AS the tax audit for the years 2018-2019 was completed, during which a
fine of €132 thousand and a tax audit for the year 2020 is in progress, while in Inteltek Internet AS has
been notified of a dividend tax audit for 2018. A tax audit for Intralot Germany GMBH is in progress for
years 2016-2018, while in Intralot Iberia Holdings SA a VAT audit is completed for 2016 and a limited
audit of double taxation for years 2016-2018 without imposing any penalties/fines. In Lotrom S.A. the
audit initiated by the local tax authorities with respect to financial activities for transactions subject to VAT
for the period 2004-2014 was completed in the fourth quarter of 2016. By order of the competent
Prosecutor of Romania, the case was filed. No appeal has been lodged against this provision.
In the context of Law 2238/94 Art. 82 par. 5 and POL.1159/2011, companies Betting Company SA and
Intralot Interactive SA have received a tax certificate for the years 2016-2020 and Intralot Services SA
for the years 2016-2018 and 1/1-22/7/2019 when the liquidation process started. Intralot Tech – Single
Member SA has received a tax certificate for the fiscal year 2019, while Intralot SA has received a tax
certificate for fiscal years 2016-2018 and the issuance of a tax certificate is pending for 2019 & 2020.
In Intralot SA during the tax audit for the year 2011, completed in 2013, were imposed taxes on accounting
differences plus surcharges amounting to €3,9 million. The Company lodged an administrative appeal
against the relevant control sheets resulting in a reduction of taxes to €3,34 million. The Company filed
new appeals to the Greek Administrative Courts which did not justify the Company, which filed an appeal
before the Council of State. The Company's management and its legal advisors estimate that there is a
significant probability that the appeal will thrive finally for the most part. The Company has formed
sufficient provisions and has paid the whole amount of taxes.
In Intralot SA, after the completion of tax audit for 2013, as well as partial re-audit of 2011 and 2012,
completed in 2019, taxes, VAT, fines, and surcharges of €15,7 million were imposed. The Company filed
appeals against the relevant control sheets resulting in a reduction of taxes to €5,4 million. On 11.11.2020,
the Company filed six appeals to the Athens Three-Member Administrative Court of Appeal against
decisions of the Dispute Resolution Directorate of A.A.D.E. to the extent that they rejected the company's
appeals, requesting their annulment. The total amount charged totals to €5,4 million. As of 7/4/2022 a
trial of the case is appointed of amount €4,6 million, while for the amount of €0,78 million, court decision
were issued according to which: a) the first appeal was partially accepted and the amount of €260
thousand was reduced by the court at €2,5 thousand, b) the second appeal (charged amount €146
thousand) was partially accepted and will be followed by a re-settlement of income tax, after deducting
accounting differences amounting to €306 thousand, and c) the third appeal ( charged amount €376
thousand) was rejected. Appeals will be brought against the last two decisions. It is noted that the amounts
charged have already been paid by the Company and therefore the final result of the appeals will not in
any case result in further financial burden for the Company. Also, during the tax audit of the years 2014
& 2015, completed in 2020, taxes were charged for accounting differences plus surcharges of €353
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
257
thousand. The Company filed appeals against the relevant control sheets resulting in a reduction of taxes
to €301 thousand. The Company will file appeals in the Administrative Courts against the decisions of the
Dispute Resolution Directorate of A.A.D.E. to the extent that they rejected the Company's appeals,
requesting their annulment. The total amount charged amounts to € 301 thousand. The Company's
management and its legal advisors estimate that the case has high success rates for the most part, either
at this stage or at the highest court level. The Company has already paid all the taxes and surcharges
charged. The Company has formed sufficient relevant tax provisions amounting to €3,5 million.
Finally, a partial VAT audit is in process for the Company following a mandate for the period 1/2/2010-
31/10/2012 upon request of assistance from Romanians to the Greek tax authorities on transactions with
a Romanian company, as well as a partial tax audit for the fiscal years 2016 & 2017 after an audit mandate
(November 2020).
ΙΙ) ASSOCIATE COMPANIES & JOINT VENTURES
COMPANY
YEARS
COMPANY
YEARS
LOTRICH INFORMATION Co LTD
2021
OASIS RICH INTERNATIONAL LTD
-
INTRALOT SOUTH AFRICA LTD
2021
WUSHENG COMPUTER TECHNOLOGY (SHANGHAI) CO LTD
2021
GOREWARD LTD
-
UNICLIC LTD
2015-2021
GOREWARD INVESTMENTS LTD
-
DOWA LTD
2015-2021
PRECIOUS SUCCESS LTD GROUP
2020-2021
KARENIA ENTERPRISES COMPANY LTD
2012-2021
C. COMMITMENTS
I) Guarantees
The Company and the Group on December 31, 2021 had the following contingent liabilities from
guarantees for:
GROUP
COMPANY
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Bid
318
0
286
0
Performance
108.795
106.270
4.512
22.723
Financing
1.948
4.978
200
200
Other
0
0
0
0
Total
111.061
111.248
4.997
22.923
GROUP
31/12/2021
31/12/2020
Guarantees issued by the parent and subsidiaries:
-to third party
111.061
111.248
-to third party on behalf of associates
0
0
Total
111.061
111.248
COMPANY
31/12/2021
31/12/2020
Guarantees issued by the parent:
- to third party on behalf of subsidiaries
3.141
21.066
- to third party on behalf of associates
0
0
- to third party on behalf of the parent
1.856
1.856
Total
4.997
22.923
Beneficiaries of Guarantees on 31/12/2021:
Bid: Department of Justice and Community Safety - State of Victoria Australia
Performance: Arkansas Lottery Commission, Camelot Illinois LLC, Centre Monetique Interbancaire (CMI), City
of Torrington, District of Columbia, Georgia Lottery Corporation, GPT Pty Ltd, Hrvatska Lutrija D.O.O., Icra
Dairesi Mudurlugu, Idaho State Lottery, La Marocaine Des Jeux et des Sports, Lotteries Commission of Western
Australia, Lotto Hamburg, Louisiana Lottery Commission, Malta Gaming Authority, Meditel Telecom SA, Milli
Piyango Idaresi Genel Mudurlugu, New Hampshire Lottery Commission, New Mexico Lottery Authority, Polla
Chilena de Beneficencia S.A., Spor Toto, State of Montana, State of Ohio - Lottery Gaming System, State of
Vermont - Vermont Lottery Commission, Town of Greybull, Town of Jackson, City of Gillette, Turk
Telekomunikasyon, Bogazici Kurumlar Vergi Dairesi Mudurlugu, Wyoming Lottery Corporation, OPAP SA..
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
258
Financing: Bogazici Kurumlar Vergi Dairesi Mudurlugu, Denizli 9. Icra Mudurlugu , Airport EL. Venizelos Customs.
Other: -
II) Other commitments
The Group has contractual obligations for the purchase of telecommunication services for the
interconnection of points of sale. The minimum future payments for the remaining contract duration on
December 31, 2021 were:
GROUP
31/12/2021
31/12/2020
Within 1 year
592
2.187
Between 2 and 5 years
5.524
5.613
Over 5 years
0
0
Total
6.116
7.800
As of December 31, 2021, the Group did not have material contractual commitments for acquisition of
tangible and intangible assets.
2.33 FINANCIAL RISK MANAGEMENT
Description of significant risks and uncertainties
The Group's international activities create several financial risks in the Group's operation, due to
constant changes in the global financial environment. The Group beyond the traditional risks of liquidity
risk and credit risk also faces market risk. The most significant of these risks are currency risk and
interest rate risk. The risk management program is a dynamic process that is constantly evolving and
adapted according to market conditions and aims to minimize potential negative impact on financial
results. The basic risk management policies are set by the Group Management. The risk management
policy is implemented by the Treasury Department of the Group which operates under specific guidelines
approved by management.
Credit risk
The Group does not have significant credit risk concentration because of the wide dispersion of its
customers and the fact that credit limits are set through signed contracts. The maximum exposure of
credit risk amounts to the aggregate values presented in the financial position. In order to minimize the
potential credit risk exposure arising from cash and cash equivalents, the Group sets limits regarding
the amount of credit exposure to any financial institution. Moreover, in order to secure its transactions
even more, the Group adopted an internal rating system, regarding credit rating evaluation, using the
relevant financial indices.
Liquidity risk
Prudent liquidity management means maintaining adequate liquidity, funding ability through approved
credit limits, and ability to repay liabilities. The Group has established specific policies to manage and
monitor its liquidity in order to continuously have sufficient cash and liquid non-core assets that can
meet its obligations. In addition, the Group has set up a system of monitoring and constant optimization
of its operating and investing costs in the framework of its liquidity management policies.
The following tables summarize the maturity of the financial liabilities of the Group based on 31/12/2021
and 31/12/2020:
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
259
GROUP
31/12/2021
Financial Liabilities:
0-1 years
2-5 years
> 5 years
Total
Creditors and other liabilities ¹ (note 2.29)
80.481
0
0
80.481
Other long-term liabilities ¹ (note 2.28)
0
502
0
502
Income tax payable
5.571
0
0
5.571
Bonds (Senior Notes) ²
36.538
670.050
0
706.588
Other Loans and lease liabilities³
4.601
7.963
2.758
15.322
Total
127.190
678.515
2.759
808.464
GROUP
31/12/2020
Financial Liabilities:
0-1 years
2-5 years
> 5 years
Total
Creditors and other liabilities ¹ (note 2.29)
75.798
75.798
Other long-term liabilities ¹ (note 2.28)
570
570
Income tax payable
3.387
3.387
Bonds (Senior Notes) ²
291.750
548.433
840.183
Other Loans and lease liabilities³
15.535
8.656
1.822
26.012
Total
386.470
557.658
1.822
945.950
¹ Excluding “Deferred Income” of notes 2.28 & 2.29 and refer to liabilities balances as of 31/12/2021 and 31/12/2020
as recognized in the relevant Statements of Financial Position, measured at amortized cost.
² Refer to Facilities “B”, “Supplemental Indenture” and “SSN” of note 2.25 and include bonds balances (outstanding
balance – after relevant repurchases) including future contractual interest up to maturity date, on undiscounted values,
that differ to the relevant carrying amounts on Statements of Financial Position, that are measured at amortized cost
according to IFRS 9.
³ Refer to the Debt mentioned to the note 2.25 (excluding the above Bonds) as of 31/12/2021 & 31/12/2020 and is
stated as has been recognized to the relevant Statements of Financial Positions, measured at amortized cost.
COMPANY ⁴
31/12/2021
Financial Liabilities:
0-1 years
2-5 years
> 5 years
Total
Creditors and other liabilities ¹ (note 2.29)
37.187
37.187
Other long-term liabilities ¹ (note 2.28)
36
36
Income tax payable
1.856
1.856
Loans and lease liabilities (note 2.25)
2.522
250.945
253.467
Total
41.565
250.981
0
292.546
COMPANY ⁴
31/12/2020
Financial Liabilities:
0-1 years
2-5 years
> 5 years
Total
Creditors and other liabilities ¹ (note 2.29)
32.481
32.481
Other long-term liabilities ¹ (note 2.28)
0
Income tax payable
0
Loans and lease liabilities (note 2.25)
450
309.453
79
309.982
Total
32.931
309.453
79
342.462
⁴ Excluding “Deferred Income” of notes 2.28 & 2.29 and refer to liabilities balances as of 31/12/2021 and 31/12/2020
as recognized in the relevant Statements of Financial Position, measured at amortized cost.
Market Risk
1) Foreign Exchange risk
Fluctuations in exchange rates can have significant effects on the Group’s currency positions. Group
transactions are carried out in more than one currency and therefore there is a high exposure in foreign
exchange rate fluctuations against the euro, which is the main underlying economic currency. On the
other hand, the Group’s activity abroad also helps to create an advantage in foreign exchange risk
management, due to the diversification in the currency portfolio. This kind of risk mainly results from
commercial transactions in foreign currency as well as investments in foreign entities. For managing
this type of risk, the Group enters into derivative financial instruments with various financial institutions,
such as foreign currency hedging for receipts of foreign currency dividends by abroad subsidiaries. The
Group’s policy regarding the foreign exchange risk concerns not only the parent company but also the
Group’s subsidiaries.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
260
Sensitivity Analysis in Currency movements amounts of the period
1/1 – 31/12/2021
(in thousand €)
Foreign Currency
Currency Movement
Effect in Earnings before taxes
Effect in Equity
USD:
5%
1.136
-1.393
-5%
-1.028
1.260
TRY:
5%
335
3
-5%
-303
-2
BRL:
5%
-35
64
-5%
31
-58
CNY:
5%
-100
100
-5%
90
-90
ARS:
5%
298
406
-5%
-270
-368
Sensitivity Analysis in Currency movements amounts of the period
1/1 – 31/12/2020
(in thousand €)
Foreign Currency
Currency Movement
Effect in Earnings before taxes
Effect in Equity
USD:
5%
-1
7.073
-5%
1
-6.400
TRY:
5%
346
349
-5%
-313
-315
BRL:
5%
-629
694
-5%
569
-628
CNY:
5%
0
95
-5%
0
-86
ARS:
5%
144
296
-5%
-130
-268
DERIVATIVE FINANCIAL INSTRUMENTS
For 2021 and 2020 the Group didn’t proceed with such contracts in order to cover currency risk.
2) Interest rate risk
Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Group's activities are closely linked to interest rates
because of investments and long and short-term borrowings. To manage this risk category, the Group
uses financial hedging instruments in order to reduce its exposure to interest rate risk. The Group's policy
on managing its exposure to interest rate risk affects not only the parent company but also its subsidiaries
for their loans concluded in euros or local currency. The Group's exposure to the risk of changes in market
interest rates relates primarily to long-term borrowings of the Group's floating rate. The Group also
manages interest rate risk by having a balanced portfolio of loans with fixed and floating rate borrowings.
On 31 December 2021, taking into account the impact of possible financial hedging products, almost all
of the Group's borrowings are at a fixed rate (31/12/2020: 98,5%) with an average life of approximately
3,2 years. As a result, the impact of interest rate fluctuations in operating results and cash flows of the
Group's operating activities is small.
3) High leverage risk
INTRALOT’s ability to incur significant additional amounts of debt so as to finance its operations and
expansion depends on capital market conditions that influence the levels of new debt issues interest
rates and relevant costs. Furthermore, INTRALOT may be able to incur substantial additional debt in the
future, however, under the Senior Notes terms will be able to incur additional debt so long as on an
actual basis its consolidated fixed charge coverage ratio is at least 2,00 (31/12/2021: approximately
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
261
2,86), and will be able to incur additional senior debt as long as on a pro forma basis the ratio of total
net debt to EBITDA (senior leverage ratio) is not more than 3,75 (31/12/2021: approximately 4,36).
Furthermore, to the above, the Group can incur additional debt from specific baskets. In addition,
according to Senior Notes terms (SSN & Supplemental Indenture), the Group, through its subsidiary
Intralot Inc., will be able to obtain additional borrowing, provided that on an actual basis the ratio of
total net debt to EBITDA (senior leverage ratio) is not more than 3,75 (31/12/2021: in compliance).
CAPITAL MANAGEMENT
The Group aims through the management of capital to ensure that the Group can operate smoothly in
the future, maximize the value of its shareholders, and maintain the appropriate capital structure in
terms of costs of capital.
The Group monitors its capital adequacy on a Net Debt to EBITDA ratio basis. Net borrowings include
borrowing and lease liabilities minus cash and cash equivalents.
GROUP
31/12/2021
31/12/2020
Long-term loans
578.805
468.695
Long-term lease liabilities
9.179
7.469
Short-term loans
13.678
272.032
Short-term lease liabilities
2.857
2.882
Total Debt
604.519
751.078
Cash and cash equivalents
-107.339
-99.984
Net Debt
497.180
651.095
Lending of discontinued operations
0
-63
Cash and cash equivalents
0
601
Net Debt (adjusted)
497.180
651.633
EBITDA from continuing operations
110.440
66.191
Leverage
4,50
9,84
Regarding capital structure, INTRALOT since January 2021 had already entered into a Lock-Up
Agreement (the Lock-Up Agreement) with an ad hoc group of noteholders, holding in excess of 75% of
outstanding principal amount of the €250m Senior Unsecured Notes due 2021 (2021 Notes). The Lock-
Up Agreement provided either for the consensual exchange of 2021 Notes with new notes of a total
principal amount of €205m, due 2025, to be issued by the Group subsidiary Intralot Inc., if noteholders
holding at least 90% in outstanding principal amount of the 2021 Notes would sign or accede to the
Lock-Up Agreement, or the recourse to an English law scheme of arrangement, with the consent of the
Ad Hoc Group. Following the Expiration Time (early February 2021) set in the Lock-Up Agreement,
Noteholders holding 82,76% of the outstanding principal amount of the 2021 Notes.
On June 28
th
, 2021, INTRALOT and the Majority Participating Noteholders (as defined in the Lock-Up
Agreement) entered into an agreement to amend and update certain terms of the Lock-Up Agreement,
including confirmation that the Company intends to implement the 2021 Notes Exchange by way of a
consensual debt exchange, changes to the representation and warranties provided by the Company,
and updates with respect to certain commercial arrangements between the Group and Intralot, Inc. and
its subsidiaries (the “Intralot, Inc. Group”). According to the above amendments, the New SSNs will be
issued in an aggregate principal amount of up to USD 244,6 million and will bear a cash interest rate of
7,09% in year one and two of issuance, 8,19% in year three of issuance, and 8,87% thereafter. The
Group will also be provided with the option to capitalize interest at a payment-in-kind interest rate, in
lieu of paying cash interest, of 9,98% for the first three years and 10,27% thereafter. The Lock-Up
Agreement contemplated that following the completion of the transaction, the Intralot, Inc. Group will
operate, to the extent possible, as standalone entities. The Group and the Intralot, Inc. Group are party
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
262
to an agreement that the business of supplying online gaming systems, retailer communication networks
and point of sale equipment such as terminals and vending machines, and other technology and support
services, to the lottery industry and in relation to sports betting activities will be carried out solely by
the Intralot, Inc. Group in the territories of United States of America and its territories and possessions,
Mexico, Canada and the Philippines. The Intralot, Inc. Group historically has engaged, and intends to
continue to engage, in significant transactions with the Group relating to, among other things, man
power support, administrative services, leasing, intellectual property and licensing costs. The Intralot,
Inc. Group and the Group have entered into certain long term intellectual property licensing, services,
technology, management and similar contracts or arrangements pursuant to which the Intralot, Inc.
Group will have key assets supporting its lottery and sports betting businesses, enabling the Intralot,
Inc. Group to achieve its strategic objectives. The pricing for certain of the intellectual property licensing
agreements is based on a percentage of revenue derived from the use of the relevant intellectual
property, subject in certain instances to agreed thresholds. In the period between the year ended
December 31, 2020 and the year ending December 31, 2024, the Group estimates that these contracts
could result in net cash payments of approximately €16,0 million from the Intralot, Inc. Group to the
Group with approximately €2,0 million and €8,0 million of payments for the year ended December 31,
2020 and the projected year ending December 31, 2021, respectively, on a pro forma basis after giving
effect to the transactions, excluding licenses costs and services from new projects not currently
contracted.
In parallel, on June 28
th
, 2021, with the consent of holders of 2021 SUNs representing at least a majority
of the 2021 SUNs outstanding, Intralot Capital Luxembourg S.A. (the “Lux Issuer”) entered into a
supplemental indenture to amend certain terms of the 2021 SUNs, including changing the minimum
denominations and integral multiple of the 2021 SUNs, amending the optional redemption notice period,
removing the covenant under “Payment for Consents” and making certain other amendments. In
parallel, on June 28
th
, 2021, the Lux Issuer and the Company, among others, entered into a loan facility
agreement (the “Redemption Facility”) with certain members of the Ad-Hoc Group (the “Redemption
Facility Providers”), under which an amount of €147,6 million is committed to be made available by the
Redemption Facility Providers to the Lux Issuer to redeem an equivalent amount (net of any fees, a
portion of which fees, subject to the completion of the transactions, will be used by the Redemption
Facility Providers to purchase New SSNs) of 2021 SUNs pursuant to the applicable optional redemption
provisions of the 2021 SUNs, i.e redemption pro rata at par. Pursuant to a private placement purchase
agreement, dated 28/6/2021 (the “Additional 2021 SUNs Purchase Agreement”), the Lux Issuer will
issue an equivalent amount of additional 2021 SUNs to the Redemption Facility Providers in exchange
for the cancellation of the Redemption Facility.
On June 30
th
, 2021, the Issuer utilized the Redemption Facility of €147.607.487 provided by certain
members of the Ad Hoc Group (the “Redemption Facility Providers”) and redeemed the same amount
of 2021 SUNs at 100% of the principal amount pro rata plus accrued interest. Following redemption,
the Issuer issued additional notes under the 2021 SUNs indenture of an amount of €147.607.487 to
repay and cancel the Redemption Facility. After the issuance of the additional notes to the Redemption
Facility Providers the outstanding 2021 SUNs are again €250.000.000. Following the redemption and
issuance of additional notes, holders of more than 90% of the 2021 SUNs outstanding as of the date
1/7/2021 had agreed to tender their 2021 Notes pursuant to the Lock-up Agreement.
On July 1
st
, 2021, the Group announced two interdependent exchange offers:
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
263
1. The commencement of an offer by US subsidiary Intralot Inc. to acquire any and all of the outstanding
€250.000.000 6,75% 2021 SUNs issued by Intralot Capital Luxembourg in exchange for up to USD
244.585.500 in aggregate principal amount of its New SSNs. In conjunction with the exchange offer
Intralot Capital Luxembourg is soliciting consents for holders of the 2021 SUNs to amend certain
provisions of the 2021 SUNs as set forth in the exchange offer and consent solicitation memorandum
dated July 1, 2021. Minimum acceptance condition was 90% of Notes outstanding and exchange ratio
set at 82%.
2. The commencement of an offer by Intralot Global Holdings B.V. to holders of the outstanding
€500.000.000 5,25% Senior Unsecured Notes due September 2024 (the 2024 SUNs) to exchange the
2024 SUNs for ordinary shares of Intralot US Securities B.V. (“TopCo”), with minimum acceptance
condition €68.176.000 and maximum acceptance amount €169.100.000.
On August 3
rd
, 2021, New Notes with a nominal value of $242.111.911 due September 2025 were issued
by US based Intralot, Inc., in exchange for existing Notes maturing in September 2021 with nominal
value of €247.471.724,07 (corresponding to an 18% discount), which were then cancelled. So, the final
participation in the exchange for existing Notes maturing in September 2021 came up to percentage of
98,99%. In parallel, the transfer of shares from Intralot Global Holdings B.V., amounting to 34,27% of
the share capital of Intralot US Securities B.V. (indirect parent of Intralot, Inc.), to the holders of existing
2024 Notes with a nominal value of €118.240.000 who participated in the exchange. Following the above
procedure, these Notes came to the possession of Intralot Global Holdings B.V. Intralot retains control
of 65,73% of Intralot, Inc. and the management of the company.
Following the finalization of the above two agreements, INTRALOT achieved its two goals related to its
capital structure, to refinance the Notes due September 2021 and to reduce by €163 millions its total
debt liabilities of nominal value. The new capital structure significantly improves the position of the
Group, and its capabilities to take advantage of new opportunities in the developed markets, based on
its strategic planning. The entry of significant institutional investors into the share capital of the parent
of Intralot, Inc., also expands the company's capabilities in a competitive and very promising market of
North America.
The effect of the above agreements on the results of the Group is presented in detail in notes 2.7 and
2.10, while the reorganization costs related to the above agreements are disclosed separately in the
Group's Statement of Comprehensive Income. The effect of the above agreements on the Group's Equity
is reflected separately in " Effect due to change in participation" of the Statement of Changes in Group’s
Equity.
Environmental Sustainability
INTRALOT embodies environmental sustainability by identifying best practices and perform green
initiatives that align with its' values, in order to reduce its' environmental footprint. Paper and energy
consumption are the largest environmental impacts identified. INTRALOT is committed to reducing the
amount of waste and improve its' recycling rates. Additionally, it reduces the use of physical resources
such as paper and ink by reducing printing within the offices. INTRALOT is measuring its environmental
impact in order to operate in a more sustainable way in the future.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
264
Risk of coronavirus pandemic (COVID-19)
The COVID-19 pandemic continues to affect economic and business activity around the world. The extent
of its impact will depend on its duration, government policy in key jurisdictions regarding restrictions
implemented and the current and subsequent economic disruption that the pandemic will cause.
Regarding the activities of the Group, the Management closely monitors the developments from the
outbreak, follows the guidance of the local health authorities and observes the requirements and actions
implemented by all local governments. The Group has implemented emergency plans to reduce the
potential adverse effects on the Group's employees and businesses. Further details regarding the
restrictions on Group operations from both COVID-19 and local governments actions, as well as the
potential financial impacts on the performance of the year 2021, are presented in the section
“Coronavirus (COVID-19) Pandemic Impact” of the Board of the Directors Report, and in the note 2.37
“CORONOVIRUS PANDEMIC (COVID-19) IMPACT”.
2.34 APPLICATION OF IAS 29 “FINANCIAL REPORTING IN HYPERINFLATIONARY
ECONOMIES”
The Group operates in Argentina through its two subsidiaries Tecno Accion SA and Tecno Accion Salta
SA. Since the third quarter of 2018, the cumulative 3-year inflation index in Argentina has exceeded
100% and the country is now considered as a hyperinflationary economy for accounting purposes under
IAS 29. The Group applied, for the first time in the nine months of 2018, IAS 29 and restated to current
purchasing power in the financial statements (transactions and non-cash balances) of the above
subsidiaries that use ARS as functional currency and present their financial statements at historical cost.
The restatement was made using the (IPIM) Internal Index Wholesale Prices and applied pursuant to
IAS 29, as if Argentina has always been a hyperinflationary economy.
The result (after the relevant consolidation eliminations) from the restatement of the non-cash assets,
liabilities and transactions of 2021 following the application of IAS 29 amounted to a profit of €595
thousand and was recorded in the Income Statement (line “Gain/(loss) on net monetary position”).
The conversion FX rates of the financial statements of the above subsidiaries were:
Statement of Financial Position:
31/12/2021
31/12/2020
Change
EUR / ARS
116,94
102,85
13,7%
Income statement:
AVG 1/1-31/12/2021
AVG 1/1-31/12/2020
Change
EUR / ARS ¹
116,94
102,85
13,7%
1
The Income Statement of the twelve month period of 2021 and 2020 of the Group's subsidiaries operating in Argentina was
converted at the closing rate of 31/12/2021 and 31/12/2020 instead of the Avg. 1/1-31/12/2021 and Avg.1/1-31/12/2020 pursuant
to IAS 21, paragraph 42a, for hyperinflationary economies.
2.35 COMPARABLES
In the presented data of the previous years except for those mentioned in note 2.26, there were limited
adjustments/reclassifications for comparability purposes, with no significant impact on “Equity”, “Sale
Proceeds” and “Profit / (loss) after tax” of the Group and the Company.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
265
2.36 SIGNIFICANT FLUCTUATIONS, RECLASSIFICATIONS & REVERSALS
Income Statement
Below are the most significant fluctuations in the Group's Income Statement for the period 1/1-
31/12/2021 compared to 1/1-31/12/2020:
Sale proceeds
Sale proceeds increased by €69,1 million, or by 20,0%, from €344,9 million in the period 1/1-
31/12/2020 to €414,0 million in the period 1/1-31/12/2021. This increase was mainly driven by the
increased revenue of all operating segments of the Group. Particularly, Sale proceeds increased by €19,9
million in USA (mainly due to the strong growth of Lottery activities, which were further boosted by a
significant jackpot in January 2021 and the higher merchandise sales in the current period, as well as
the launch of Sports Betting contracts in Montana and Washington, D.C. at the end of 2020, despite the
effect from the adverse USD movement), by €17,8 million in Malta (mainly due to the COVID-19 impact
in the 1H20), by €20,7 in Argentina (mainly due to COVID-19 impact in 1H20), by €6,6 million in Turkey
(due to Bilyoner’s improved performance that was supported by the continued growth of the online
market), by €3,9 million in Morocco (mainly due to COVID-19 impact in 1H20), and by €4,5 million in
Australia (mainly due to COVID-19 impact in 1H20).
Gross Profit
Gross profit increased by €46,2 million, or by 63,1%, from €73,2 million in the period 1/1-31/12/2020 to
€119,4 million in the period 1/1-31/12/2021. This increase is mainly driven from the increase in Sale
proceeds as analyzed above.
Other Operating Income
Other operating income increased by €4,1 million, or 23,4%, from €17,5 million in the period 1/1-
31/12/2020 to €21,6 million in the period 1/1-31/12/2021. This increase is mainly due to higher income
equipment lease income in USA.
Selling Expenses
Selling expenses decreased by €0,7 million, from €23,3 million in the period 1/1-31/12/2020 to €22,6
million in the period 1/1-31/12/2021, despite the increase of Sale proceeds by 69,1%.
Administrative Expenses
Administrative expenses increased by €9,4 million, or 14,6%, from €64,2 million in the period 1/1-
31/12/2020 to €73,6 million in the period 1/1-31/12/2021. This increase is mainly due to increased costs
in the US, Australia and Turkey, which are partially offset by cost reductions in Greece.
Reorganization Expenses
Reorganization expenses of €17,2 million in the period 1/1-31/12/2021 and €6,8 million in the period 1/1-
31/12/2020, refer to advisors’ fees regarding the 2021 and 2024 Bonds restructuring.
Other operating expenses
Other operating expenses increased by €1,9 million, from €2,0 million in the period 1/1-31/12/2020 to
€3,9 million in the period 1/1-31/12/2021. This increase was mainly due to the higher provisions for
contractual fines-penalties, and doubtful provisions of receivables in 2021.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
266
EBITDA
EBITDA increased by €44,2 million, or by 66,8%, from €66,2 million in the period 1/1-31/12/2020 to
€110,4 million in the period 1/1-31/12/2021. This increase is mainly driven by the increase in Gross Profit
and Other operating income as analyzed above.
EBITDA for the period 1/1-31/12/2021 on a constant currency basis, net of negative FX impact of €7,8
million, amounted to €120,4 million for the period 1/1-31/12/2021, meaning an increase by 82,8%
compared to the period 1/1-31/12/2020.
Income/(expenses) from participations and investments
Income/(expenses) from participations and investments came up to net income of €45,1 million in the
period 1/1-31/12/2021 from net expense of €3,9 million in the period 1/1-31/12/2020. This improvement
is mainly due to the exchange of 34,27% of the share capital of Intralot US Securities B.V. (indirectly
parent company of Intralot, Inc.) to holders of existing bonds maturing in 2024 and to increased dividend
income in 2021, as well as higher impairment losses on participations and investments in 2020.
Gain / (losses) from assets disposal, impairment loss and write-off of assets
Gain / (loss) from assets disposal, impairment loss & write off of assets came up to net loss of €16,3
million in the period 1/1-31/12/2021 from net loss of €21,0 million in the period 1/1-31/12/2020. This
improvement was primarily due to higher provisions for assets impairment losses in 2020, mainly due to
COVID-19 pandemic. Further analysis is provided in note 2.14 & 2.16.
Interest and Similar Expenses
Interest and similar expenses increased by €11,0 million, or 22,1%, from €49,9 million in the period 1/1-
31/12/2020 to €60,9 million in the period 1/1-31/12/2021. This increase is mainly due to the costs
associated with loan restructuring.
Interest and Related Income
Interest and related income increased by €45,9 million from €1,5 million in the period 1/1-31/12/2020 to
€47,4 million in the period 1/1-31/12/2021. This increase is mainly due to the costs associated with loan
restructuring ended September 2021.
Exchange Differences
The account “Exchange Differences” in the period 1/1-31/12/2021 refers to losses of €1,2 million,
comparing with losses of approximately €8,7 million in the period 1/1-31/12/2020. This improvement is
primarily due to the valuation of trade and debt liabilities (intercompany and non) in EUR that various
subsidiaries abroad had as at 31/12/2021, with a different functional currency than the Group’s.
Profit / (loss) from equity method consolidations
Consolidation of associates and joint ventures through the equity method contributed profit of €0,2 million
in the period 1/1-31/12/2021 compared to the losses of €1,5 million in the period 1/1-31/12/2020, mainly
deriving by the Group’s associates in Asia.
Taxes
Taxes in the period 1/1-31/12/2021 amounted to €4,4 million, versus €7,3 million in the period 1/1-
31/12/2020. This increase was primarily due to the positive effect of deferred taxation in 2021.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
267
Further analysis for the accounts Group Income Statement for the period 1/1-31/12/2021 compared to
1/1-31/12/2020 is provided in the ANNUAL Group Management report (“INTRALOT Group MANAGEMENT’S
DISCUSSION & ANALYSIS”) that has been posted in the website www.intralot.com.
Statement of Financial Position
No significant reclassifications were made to the Group's statement of financial position as of 31/12/2021
compared to the 31/12/2020.
2.37 MACROECONOMIC ENVIRONMENT
INFORMATION ON THE CORONOVIRUS PANDEMIC (COVID-19) IMPACT
Despite the serious challenges and uncertainty surrounding COVID-19, 2021 closed with a positive sign,
as most countries have begun to loosen restriction measures, signaling that a return to normalcy can recur
gradually.
During this apparent crisis for the second year in a row, our priority was to ensure the health and safety
of our team by using all available government measures and all available technological applications for
distance work. We are very proud of the way our employees responded and handled all business operations
without any discount on the quality of services provided to our customers.
Although gambling businesses face challenges related to COVID-19, according to the H2 Gambling Capital
- Global Summary January 22, the total global GGR for 2021 increased by 10,81% compared to a year
ago.
Based on the current performance of our operations and the actions taken by most of our subsidiaries, the
EBITDA impact of the 2021 pandemic is estimated at around €3 million. The extent to which our business
will be affected by COVID-19 in the coming quarters will largely depend on future pandemic developments.
ECONOMIC CONDITIONS
The energy crisis of 2021 fueled by the war in Ukraine, shapes a new uncharted era for the global economic
outlook. In addition to the deep economic impact of the COVID-19 pandemic, supply chain disruptions,
inflationary pressures and geopolitical tension around the world are expected to play a pivotal role on the
global business landscape.
Our Group is engaged in the provision of gaming technology related services in Americas, Oceania, Turkey,
and Western Europe and has no exposure to any direct risks in terms of operations or dependency from
suppliers in Ukraine and Russia. The nature of our worldwide operations, labor-intensive driven, is not
affected by the volatility of commodity prices including energy. The Management of the Company monitors
the geopolitical and economic developments on a constant basis and is ready to take all the necessary
measures for protecting its operations.
2.38 SUBSEQUENT EVENTS
On March 3,2022 «INTRALOT SA – INTEGRATED LOTTERY SYSTEMS AND SERVICES» (distinctive title
«INTRALOT») informs the investors, according to L.3556/2007 and article 19 of the Regulation (EU) No
596/2014, that the legal entity ALPHACHOICE SERVICES LTD which is affiliated with and controlled by Mr.
Sokratis P. Kokkalis, Chairman of the Board of Directors and CEO of INTRALOT, on March 1, 2022 acquired
7.323.920 Company’s common registered shares, with voting rights, for a total value of 3.442.242,40
Euro.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
268
The Société Anonyme company «INTRALOT SA – INTEGRATED LOTTERY SYSTEMS AND SERVICES»
(distinctive title «INTRALOT») in compliance with L. 3556/2007, as in force, and further to the notifications
of the company “ALPHACHOICE SERVICES LIMITED”, of Mr.Sokratis P. Kokkalis and of the company “K-
SYSTEMS” dated 03/03/2022 in relation to the voting rights of these entities on the shares of the Issuer
Company, notifies the following:
On March 1, 2022 «ALPHACHOICE SERVICES LIMITED» which is 100% controlled by the Société Anonyme
company «Κ-GENERAL INVESTMENTS AND SYSTEMS SINGLE MEMBER HOLDINGS SOCIÉTÉ ANONYME»
(distinctive title “K-SYSTEMS”), sole shareholder of which is Mr. Sokratis P. Kokkalis, acquired 7.323.920
common registered shares, with voting rights, issued by «INTRALOT SA – INTEGRATED LOTTERY SYSTEMS
AND SERVICES» (distinctive title «INTRALOT»).
Following that, on March 1, 2022:
- The percentage of the direct voting rights of the company “ALPHACHOICE SERVICES LIMITED” on
INTRALOT’s shares amounts to 25.695% of the total voting rights of the Issuer (i.e. 39,123,920 voting
rights) against a previous percentage 20,885% of the total voting rights of the Issuer (i.e. 31.800.000
voting rights), following the acquisition of 7,323,920 INTRALOT’s common registered shares with voting
rights
- The percentage of the indirect voting rights of Mr. Sokratis P. Kokkalis on INTRALOT’s shares amounts
to 25.695% of the total voting rights of the Issuer (i.e. 39,123,920 indirect voting rights) against a
previous percentage 20,885% of the total voting rights of the Issuer (i.e. 31,800,000 indirect voting
rights), through the following controlled companies:
o «Κ-GENERAL INVESTMENTS AND SYSTEMS SINGLE MEMBER HOLDINGS SOCIÉTÉ ANONYME»
(distinctive title “K-SYSTEMS”), a company 100% controlled by Mr. Sokratis P. Kokkalis
o «ALPHACHOICE SERVICES LIMITED», a company 100% controlled by «Κ-GENERAL INVESTMENTS AND
SYSTEMS SINGLE MEMBER HOLDINGS SOCIÉTÉ ANONYME» (distinctive title “K-SYSTEMS”)
As of March 17, 2022 INTRALOT announces the extension of its current contract of INTRALOT Maroc, a
subsidiary of the INTRALOT Group acting as games operator in Morocco, with La Marocaine Des Jeux et
des Sports (MDJS), a state lottery offering sports betting and other games of chance in Morocco, for one
additional year; the contract is now due to expire on 31.12.2023.
On April 5, 2022 INTRALOT announced the extension of its current contract, with Magnum Corporation
Sdn BhD, a gaming operator pioneer in Malaysia, for another two (2) years; the contract is now due to
expire on 30.06.2024. The current agreement concerns the support of INTRALOT’s core operating system
LOTOS™ O/S including the games software, the On-line Gaming System, and its new generation terminals
Photon.
On April 6, 2022 INTRALOT announced that its U.S. subsidiary, INTRALOT, Inc., has signed a 5-year
extension of its contract with the Wyoming Lottery Corporation. INTRALOT, Inc. will continue to provide
its lottery operating system and services for the operation of the Wyoming Lottery through August of
2029.
INTRALOT Group
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2021
269
Peania, Αpril 8, 2022
THE CHAIRMAN OF THE BOD AND
GROUP CEO
THE DEPUTY CHIEF EXECUTIVE OFFICER
AND MEMBER OF THE BOD
S.P. KOKKALIS
ID. No. AΙ 091040
C.D. SFATOS
ID. No. AH 641907
THE GROUP CFO
THE GROUP ACCOUNTING DIRECTOR
A. A. CHRYSOS
ID No. AK 544280
Ν. G.PAVLAKIS
ID.No. AZ 012557
H.E.C. License
No. 15230/ A' Class
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