Opening of the
online gambling
market in France
Philippe Germond
Chairman & CEO
44th International Conference of Horseracing Authorities
October 4, 2010
PMU: a major actor facing the
opening of its online market

1st pari-mutuel company in Europe and 2nd in the world
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€ 9.3 billion turnover in 2009 (+0,4 %)
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27 % of the total betting and gambling market in France
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€ 731 million net profit paid to Horseracing Associations (2009)
, the first betting website in France

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€ 661 million turnover in 2009 (+22 % VS 2008)
Available on Mobile phone, iPhone, iPad (soon)
Other key figures :
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6.5 million customers
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more than 2 billion bets registered a year
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11,000 betting outlets
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Opening of the French
online market
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Main features of the law voted
the 13th of May

An opening of the online betting and gambling market (horse
racing betting, sports betting and poker) :
- Pari mutuel only for horse racing betting
- Levy on horse racing bets in order to fund the French
equine sector (7,5% to 9%)
- 7,5% tax on horse racing and sports betting, 2% on poker
- Licences required for any on-line gambling company operating in France

A strong regulation with a new independent authority, ARJEL:
- Regulate the online gambling market
- Fight against illegal operators

PMU activity
- Monopoly maintened in outlets
- Continuation of parimutuel betting on horseracing (offline and online)
- Ability given to PMU to diversify its business activity
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Overview of the new French market
 Mid September:
- 30 operators received 40 licences:
21 poker licences
12 sports betting licences
7 horseracing betting licences
- PMU is the only operator with Betclic and SPS which offers the
three legal offers on its website
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In 2010, PMU becomes
a global operator
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Offensive strategy

Keep customers loyal to PMU

Gain new customers troughout sports betting and poker

Cross-sell between all businesses and increase customer value

Defend horse racing betting

Secure horse racing funding
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Offensive strategy

Maintain the growth of horse racing betting
- More than 1000 meetings (+ 10%) in 2010
- Strong internet growth
- Intensive development of the offline network (11.000 outlets, + 3 %)

Become a major online sports betting operator in partnership with
Paddy Power

Enable customers to play online poker on pmu.fr and be
considered as a global online operator
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PMU preliminary results 2010 Q3

Horse racing betting: + 0,4 % YTD

Internet: + 32 % YTD (Q3: + 58 %), thanks to new businesses

Almost 500.000 customers online

Image: more than 8 of 10 people have seen and remember PMU TV
ads, with a very positive impact on brand values (innovation,
dynamism…)

Ability to face competition
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Future prospects
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PMU still has growth opportunities
in France

Increasing the number of races offered to french punters
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Developping PMU outlets and betting shops

Growing new online businesses : poker and sports betting
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Future prospects
PMU will also take advantage of its assets to develop new growth
opportunities

A highly rated racing offer at the international level :
Partnerships in more than 50 countries with more than €1,2 billion bet outside
France on French racing
- Strong developpement, improving local Horse Racing Association funding
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
The largest betting pool in the world open to international cooperation :
A wide range of 9 bets, with traditional bets and exotic ones as well
- Quinté +, a daily offer with a € 1 million minimum jackpot and a € 7.45 million
record winning, able to compete with Lotteries’ products
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Large pools ensuring steady dividends whatever the size of the bets
PMU’s international strategy
To seize development opportunities abroad, in line with historic partners
and for the benefit of local horse racing sectors

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Thank You
Click Here to watch the PMU ads
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