FDJ United (FDJU) Earnings Call Transcript & Summary

Good afternoon. Just to let the people which are connected following this Capital Markets Day online that the slide deck will be uploaded in a very short moment. It's quite heavy documents. So very soon, do not hesitate to try in 2 or 3 minutes. Thank you. I hand over to Stephane Pallez.

So good afternoon to everybody in this room. Good afternoon or good morning maybe to people that might be online with us. So I'm very happy to be with you today. I'm Stephane Pallez, CEO and Chairwoman of FDJ United Board. And it's my pleasure to welcome you today to our FDJ United first Capital Markets Day. Because today is indeed a very exciting moment for us since it is our first Market Capital Day with the new group that was created recently. So I'm very proud to present to you the key members of our executive committee that will play a major role in executing our group strategy. It's a great team that also reflects the evolution of the group, with, of course, the arrival last year of 2 new business unit leaders: Nils Anden, who was previously CEO of Kindred; and Giovanna D'Esposito, with a strong experience of international gaming business. We also created a new role as Chief Data and AI Officer with Sebastien Rozanes in this role, coming from Carrefour, to accelerate our data and AI strategy. So today is about sharing with you what makes FDJ United unique and providing you with a clear view about on how we're going to execute our medium-term strategy and objectives. So I will begin by presenting our new group with our assets, how we'll strengthen them further and how we will continue to transform the group and the business and also, of course, share with you our strategic ambitions and our high-level financial outlook. Then my team will bring this to life for our key business units, sharing major strategic objectives and milestones and plans to create value. Patrick Buffard will come first to explain our strong and profitable lottery business in France will be further transformed to continue to generate profitable growth. Nils Anden will give you a precise view on OBG transformation to sustain growth with increased performance. For international lottery, Giovanna D'Esposito will talk you through the great assets of the group and how we intend after PLI to grasp further opportunities. Pascal Chaffard will demonstrate the power of our economic model to create sustainable value and through a disciplined capital allocation to translate it into robust financial objectives. Then Sebastien Rozanes will talk you through the data and AI strategy road map and will show you how it's going to be core for performance and further transformation. And of course, Charles Lantieri and Vincent Perrotin will reaffirm our strong belief and further ambitions and how we differentiate in sustainability policies, which are strong enablers of our economic model. Of course, there will be a Q&A session at the end, and there will be a comfort break between these sessions. So now let's turn to our strategic ambition. We have carefully designed this new phase of our transformation journey with a clear ambition, which is to assert our leadership in Europe as a unique, sustainable lottery gaming and betting operator. Ambition builds on our performance and our track record over the last years and of the strength of our new model. We will achieve it through our new strategic plan, Play Forward 2028, with solid growth, recurring EBITDA margin expansion and high cash flow generation. 2025 is a pivotal year for this journey. Our integration of Kindred in the group is well on track as planned, and we are building further a strong position to prolong our profitable growth for the future and to deliver attractive medium-term returns for our shareholders. So this journey, as it is started, as you know, in 2019 with the very successful IPO of FDJ. From the start, FDJ, now FDJ United, has grown through a compelling business model. Over the years, we fortified and continuously grew our cash generation lottery business in France, and we started to grow our other assets and of course, particularly our online assets. Over the years, our performance has demonstrated the success of this strategy. Between 2019 and 2024, group revenue increased by almost 2x, reaching EUR 3.8 billion, recurring EBITDA more than doubled to EUR 964 million. And year-on-year, we delivered our commitment with a recurring EBITDA margin expansion at almost 500 basis points to over 25%. So this very high level of profitability has been, of course, fueled by our high operating leverage and our performance culture. In addition for us, financial performance goes hand in hand with sustainability and ESG. We want to be a recognized industry leaders in terms of ESG. We are recognized as such by the main rating agencies such as Moody's, and of course, our ambition is to remain being so. So on the basis of this, we were able to realize a constant delivery of attractive dividends to shareholders. We've been able to deliver continuous dividend growth to our shareholders over the last years, including to 400,000 individual shareholders who chose to join the adventure from the beginning. We have guaranteed shareholder returns with high payout ratio, and we'll continue doing so because it is part of our fundamentals. So it has been a successful transformation journey. And I want to come back a little bit on it. Since -- from 2019, FDJ United has been transformed from being a leading lottery and sports betting operator in France to a European lottery betting and gaming champion in Europe. It has been achieved, first, of course, through successful organic growth and then complemented by selective M&A. So in the French lottery business, we have driven organic growth by providing safe and entertaining gaming experience, both off and online. And we are actually one of the few lottery that has been able to grow simultaneously online and offline distribution channels. We also have been able to grow our large player base with always a strict responsible gaming approach. In addition, we invested in our sports betting activities, both in retail and online in France, and they achieved major changes. Our retail sports betting app, for instance, was a game changer in the way wages are placed in stores. In the competitive market, the launch of our online poker has complemented and strengthened our sports betting activity and has been a big success. And therefore, building on these achievements, from 2022, we progressively started to enrich our growth through selective M&A. We started with international lottery business by the acquisition of PLI, the national lottery in Ireland, which marked a milestone as we became for the first time, a lottery operator outside the French market. We now hold the exclusive license to operate the national Lottery until 2034. For OBG activities, with the acquisition of ZEturf, a horse betting online operator, we extended further our product portfolio and became a full-fledged gaming operator in the French market present on the 3 authorized segments. And of course, after that, the decision to acquire Kindred in 2024 drove a step change in the scale of OBG in the group and created a strong new European footprint. In line with our vision, our business profile significantly changed since FDJ United is now a unique champion in Europe, covering the entire spectrum of attractive gaming verticals in a more balanced and diversified way. So as Kindred was a transformative acquisition, let me come back to the fundamental reasons for this move. We strongly believe that to be able to generate profitable growth in this market in the future, we need to continue to increase scale, diversification and online components of our business. It is on this basis that we selected Kindred, a native online operator, as a great opportunity. The strength of its leading brands such as Unibet or 32Red complement our strong brand portfolio. Its proprietary platforms are essential in terms of product differentiation and cost control, which are key in this competitive environment. Its strong positioning in key European markets create an attractive international footprint. All this being deployed by multicultural teams which share our culture of performance and our commitments for responsible gaming. Last but not least, this company has shown a consistent financial profile with our group with strong cash flow generation fueled by profitable growth. So at FDJ, we have historically developed our assets to be credible and relevant to this industry. And with Kindred, we think we have even acquired more levers to sustain our development, effectively leveraging group synergies and cross fertilization. So Kindred is a transformation accelerator for our group. Where are we today? After we completed this acquisition in October 2024, we initiated a structural integration process, which is well on track today. On this basis, as announced during 2024 annual results, we're going to deliver more synergies than estimated initially, as we are now committed to deliver more than EUR 60 million of synergies and cost optimization with a gradual effect until 2028, starting, of course, in 2025. In the first month of 2025, we have launched a number of worldwide projects, including, first of all, the progressive rollout of KSP, our proprietary platform, sports betting, across all our markets. We now operate in a new unified group bound together by common international culture and new shared values designed by all our employees' accountability, passion to succeed and collective spirits. So what are we now? We are now a European group with considerable scale that allows us to develop increased efficiency. Today, we are 1 of the top 3 lottery betting and gaming operators in Europe active in 10 European markets. We hold leading positions in most of these markets and are profitable in all of them. All are locally regulated, with Finland being on a clear path to becoming regulated by 2027. So we're now reaching globally around 33 million players, of which 9 million are online players who analyze the quality of our offers and gaming experience. This is true both off and online through our large retail networks, both in France and Ireland. And of course, 5,000 employees of more than 70 nationalities work together in the new group within this new culture. So we have transformed our business profile and built a unique, stronger position in the industry. First, we've added an intentional growth engine to the group, with international activity now approaching 30% of the group's revenue. Second, we have a more balanced and diversified business portfolio, with revenues from activities open to competition representing 1/3 of our revenues. Third, the group has increased its capacity to grasp the benefits from online growth, with 1/3 of its revenue generated by online activities both in lottery and betting. So on this basis, with 2025 as a transition year, we have opened a new chapter in our history. Building on our strengths, we aim to assert our leadership in Europe as a unique, sustainable lottery, gaming and betting operator. And we aspire to emerge as a leading benchmark for the industry in Europe across all verticals and markets we operate in. Our customer and asset base are robust, our brands are strong, our teams are talented. We, therefore, have the ability to leverage our business model, and this is the ambition under our motto, Play Forward. So why Europe as our playing field today? Because we believe Europe is an attractive market and is -- and that we are well positioned to succeed to capture those trends. To start, Europe has a solid underlying growth in the regulated markets, which are, of course, our only playing field. [ TGR ] CAGR between 2025 and 2028 is expected to be over 6%. Underlying growth opportunities are even higher when you look, of course, at online activities. We also believe in Europe in our sector as a resilient market with low cyclicality, particularly in downturns at the macroeconomic level. Additionally, European markets has a mature regulatory environment which provides a certain level of stability in terms of operating control. And Europe today is still a fragmented market, offering room for further consolidation. So we see our scalability to operate successfully around -- along -- on those markets and across those different markets as an opportunity to further strengthen our market positioning in core market and to extend our footprint beyond in the future. What do we see in terms of trends? We know that our markets will evolve further in the coming years. And despite intense competition and challenging operating conditions, there are many opportunities for us to grow, taking advantage of market openings and license renewals. We also know that customers' expectations are evolving. Customers look for more personalized games and for entertainment value, and we compete, of course, with all the entertainment industry. But although this digital universe is expanding rapidly, customers still value human interactions and proximity and trustful service providers that we are. So with our capabilities, assets and footprint, we are well placed to capture value from these trends. We have now reached a critical size to benefit from scale. Thanks to our proprietary platforms, we have the capacity to innovate and offer differentiated products across both new and existing brands and across markets. And finally, we can effectively leverage our assets, our portfolio of powerful brands, our large distribution networks and our state-of-the-art technology infrastructure. So we have a compelling business model, thanks to this scale and powerful assets. We have built it and will further enhance it, resulting in both solid growth and high cash flow. Pascal will come back later on how this model fuels future growth and profitability and allow us actually to both invest for future growth and to offer attractive returns to our shareholders. To fully unleash our ambition and this model, we have adapted our organization and created 4 business units which all contribute to group's growth ambition. 2 of them, LSF and OBG, are and will be powerful cash generation engines. The 2 others are smaller at this stage and more in investment mode while already serving group strategy. So let me briefly highlight our main objectives with each of them. So for the French lotteries and retail sports betting in France, we will grow the player base in a profitable and responsible way. We will increase digital penetration while starting to unlock the omnichannel potential. Patrick Buffard will walk you through our objectives and execution plan on this. For OBG activities, we will excel at profitable scaling and generate revenue growth and faster growing margin growth. The next few years will be focused on our market positioning by exceeding to top 3 position as a medium-term objective in the majority of our existing markets. So to achieve this, we will focus on our core customers from whom we'll provide a differentiated customer experience, thanks to our unique platform. Nils Anden will provide a deep dive on our plans to achieve it. Then for International Lottery, we will further develop the opportunity to become more and more, a multi-jurisdictional lottery leader, leveraging on our well-proven ability to manage and transform our core business activity. PLI was a first step in this direction in 2023. It demonstrates our ability to successfully operate lotteries outside France by leveraging group synergy -- group synergies and fostering cross-fertilization. So based on this first case and on the careful market assessment, we believe there are significant additional growth opportunities, and we are getting ready to set them, and Giovanna will provide you with additional colors to -- in our strategy and action plans on this. Then our Payment & Service business, which was launched in 2022, has been progressively developed to provide value for multiple use cases targeting both end customers and retailers in France. We believe in the potential of this activity, although small at the group level, and are working on creating a truly differentiating and scalable assets which will continue to serve the group strategy, particularly in France at this point. We won't go into more details during the presentation on this one, but open, of course, to questions if you have some. Then Data and AI. As I indicated at the beginning, we are convinced that our business activities are going to be strongly transformed and empowered by data and AI in the years to come. We are now deploying and have started to do so, a focused strategy, a focused road map to realize it with 2 priorities: elevate gaming experience and customer experience to drive responsible growth and improve efficiency to reach new standards for operational excellence all over our business. Sebastien will give you more insights on our trajectory to achieve this. So we have a unique balanced profile to generate sustainable and profitable growth today. We are active in all gaming activities and distribution channels with a strong footprint in most significant European markets. We are combining mature activities with online growth, and we have solid financial model to fund investment and returns for shareholders. So we can translate this into strong financial midterm commitments. Between 2025 and 2028, we want to achieve 5% organic revenue CAGR, with always a recurring EBITDA margin higher than 26% in 2028. And a recurring EBITDA to free cash flow conversion, of course, above 80%. So on this basis, the group will be able to maintain a very solid financial structure while allowing a year-on-year dividend increase with a minimum payout ratio of 75%. At the same time, we will remain committed to our sustainable and responsible growth strategy by both reducing the risk linked to activities with our responsible gaming policy and increase further, our positive impact on society. So to conclude, FDJ United has the ambition, the strategy, the plans and the teams to deliver an industry-leading performance. I will now let Patrick Buffard talk about our lottery in France, and we'll come back later for the conclusion and question and answer. Thank you very much.

Good afternoon, everyone. Thank you, Stephane, for the introduction, and thank you all for being here today. I am Patrick Buffard, and I have been working in the gaming sector for 18 years. In the next 20 minutes, I will walk you through the 2025-2028 strategy of the French lottery and retail sports betting business unit, which I have been running since June 2024. Please note that the French lottery and retail sports betting business unit will be referred to as the LSF BU in my presentation. What I will demonstrate today is how we plan to expand our player base and grow our business in a profitable and responsible way. While, as Stephane mentioned, starting to unlock the omnichannel potential. Between 2025 and 2028, our ambition is to sustain low to mid-single-digit revenue CAGR growth, supported by a dynamic stakes trajectory in line with our past trends, but with a lower revenue conversion in 2025 and 2026 due to the taxation increase. We aim to develop the iLottery revenue share to 20% in 2028, adapting to evolving player behaviors. And we are committed to bringing our EBITDA margin above 35% by 2028 at the latest, fully absorbing the impact of new taxation. To begin with, let me give you another view of our current position. The French lottery and retail sports betting business unit is the cornerstone of FDJ United's leadership, powered by its exclusive rights and a strong brand portfolio. It holds nearly 50% of the French gaming market. It contributes to 66% of the group's revenue, making it a key growth engine. And with an attractive EBITDA margin of 35%, it delivers strong profitability. It is important to keep in mind that our lottery model stands apart in Europe and is a key driver of our success. Let me highlight a few reasons why. First, our dual channel growth is unmatched with a 27% CAGR in iLottery and a 3% CAGR in retail, which is, in fact, exceptional by European standards. Second, our best-in-class mobile app, which is consistently receiving very high ratings, reflects our commitment to delivering a seamless and engaging online customer experience. And at the same time, our extensive retail network allows us to connect with 8.5 million players every week, reinforcing our reach and accessibility. Now looking ahead to 2028. Our ambition is clear: to expand our player base and responsibly grow our customer value. On one hand, we aim to increase our active player base by more than 1 million. This growth will be driven by both channels. 2/3 of these new players will be recruited through our retail network, while 1/3 will join us via the online channel. At the same time, we are targeting a 3% increase in the average revenue per user, driven by responsible upselling and the smart cross-selling, both between and across our game ranges. And to unlock even greater value, we will focus on converting single-channel players into omnichannel players, a segment that consistently shows high value and engagement. Let's now see what our ambition for 2028 looks like. The iLottery will be our primary growth engine, delivering a low to mid-teens CAGR. Meanwhile, our retail activity will continue to grow steadily with a low single-digit CAGR, supported by our strong physical network and a loyal player base. Together, these dynamics will drive a low to mid-single-digit CAGR for the entire LSF business unit, ensuring balanced sustainable growth across channels. To achieve this ambition, we are guided by a clear focused strategy built on 3 pillars. First, increasing digital penetration; second, transforming the point-of-sale network; and third, executing a bold omnichannel strategy. This strategic framework will be reinforced by enhanced performance, ensuring we deliver sustainable and profitable growth. Starting by digital. Digital penetration is key. Why? Because it's at the heart of our future growth strategy, and it's a major driver of profitability. We project a low to mid-teens CAGR for the iLottery, reflecting a strong shift towards online play, with a digital share reaching approximately 20% of total lottery in 2028. And with the iLottery margin being more than 1.5x higher than that of retail, this shift is essential for improving long-term profitability. Let us now turn to our iLottery strategy. In order to deliver our ambitions, we are focusing on 2 key growth drivers. The primary driver will be expanding the digital player base by 50%. 2/3 -- yes, this will fuel 2/3 of the online growth. How will we achieve this? We will recruit new players by relaunching our iconic draw-based game, EuroMillions, Loto and reinforcing their brand promise. We will also rely on new innovative draw-based games, such as Crescendo, a major launch planned for November this year designed to attract and engage new audiences. The second growth lever is enhancing the value of each player. We expect 1/3 of the iLottery growth to come from an increase in the average revenue per user. To achieve this, we are designing a more engaging and personalized player experience powered first by game innovation. We are enriching our portfolio with new, immersive formats, multiplayer experiences and innovative mechanics all designed to deepen engagement and encourage cross-sell. You'll get another view of those games in the video I will show you at the end of my presentation. Second, by personalization. We are leveraging AI technology, tailoring content and experiences to each player's preferences and behaviors. And third, by stronger player protection. AI and data are also enabling us to identify at-risk behaviors early, providing support and ensuring that our growth remains responsible and sustainable. And we have a proven track record to support this ambition. Since 2019, we have consistently demonstrated our ability to engage customers responsibly in the digital space. Our digital player base has steadily increased year after year, more than doubling versus 2019. We've achieved significant reduction in acquisition costs per player, improving efficiency and return on investment. And we've seen a clear decline in the share of GGR from high-risk iLottery players from 2.3% to 1%, a strong indicator of our commitment to responsible gaming. Let's now turn to the second pillar of our strategy, transforming our retail network. Our objective is clear: expanding the reach and accessibility of our distribution network to better recruit and serve players wherever they are. By 2028, we want branded banners to represent 20% of our PoS network, doubling their share versus 2019. This network diversification, mostly through hypermarkets and supermarkets, will enable us to reach players who do not visit our traditional network. It will contribute to the recruitment of 2/3 of our new active player target and it will generate more than 100% of value creation across the retail network. The transformation of our commercial organization and sales model is also key. By the end of 2025, we will have completed a major restructuring plan which has involved considerable efforts over the past few years. First, with the internalization of the sales force to gain full control of our commercial strategy with a complete overhaul of the field organization, reducing sectors from 140 to 21 with the outsourcing of PoS deliveries to make distribution more cost efficient. And starting in 2026, we will leverage this organization to implement a high-performance commercial model focused on value and driven by 2 main levers. First, launching a new segmented commercial approach to concentrate the sales force efforts on high potential PoS. In other words, high-value PoS with committed shop owners. Second, developing commercial skills and leveraging AI to increase operational efficiency across our network. Pursuing this transformation is therefore both a growth project to boost retail sales, but also a key project to meet our 2028 performance plan objectives. The third pillar of our strategy is the omnichannel strategy. Why is it so important? First, because today's players expect seamless personalized experiences, whether they are online, in-store or switching between both channels. Second, because it's a proven value driver. Omnichannel players have significantly higher average stakes than retail or digital-only players. And third, it will actively engage our partner retailers in our digital transformation. And for this, we've already taken a major step forward. We have already signed a new agreement with all our retailers. This contract gives them a real interest in developing omnichannel and digital activity together. Our omnichannel strategy focuses on 3 key priorities: first, identifying players at point of sales; second, reinforcing player protection across all channels; and third, converting single-channel users to omnichannel practices, responsibly increasing their engagement and value. Our ambition by 2028 is clear. More than 25% of our players will be identified. So how do we get there? 2026 will be a turning point in our journey, as it will mark the launch of player identification at retail point of sales, a cornerstone of our omnichannel approach. Players will be able to create an account in store accessible across all channels or use the existing digital account they have in store. And at the same time, players will benefit from FDJ & Moi, our first omnichannel loyalty program designed with responsible gaming at its core. This program will address evolving player expectations by recognizing their loyalty while rewarding their responsible gaming behaviors. That marks a major innovation in player engagement and protection in the lottery world. Building on these foundations, we are progressively crafting a best-in-class omnichannel experience powered by 3 key components. We will give our identified players access to a range of exclusive products and services such as second chance opportunities. We are unifying the player experience through the single player account that connects digital and physical worlds. The mobile app will be, of course, at the heart of this experience, making it easier for players to manage their activity. And finally, we will build deeper and more personalized relationship with our players, tailored to their preferences and grounded in responsible gaming. This will be enabled by leveraging data and AI capabilities, along with the launch of FDJ Protect, our new tool to monitor player behavior, which Vincent Perrotin will further cover in his presentation. Together, these levers will enhance player experience, accelerating the shift from single channel to omnichannel players. As we look ahead to 2028, I want to leave you with the key indicators that summarize our ambition. From 2025 to 2028, the French lottery and retail sports betting business unit is fully committed to delivering responsible and profitable growth. Our financial targets are clear: Delivering a low to mid-single-digit revenue CAGR while returning to an EBITDA margin level above 35% by 2028 at the latest. This will be supported by a strong performance plan, meeting 40% of the 2028 group performance objectives. This will be also achieved by an increased digital penetration reaching 20% of the lottery business in 2028 and a transformed retail network with banners representing 20% of the [ PoS ] network by 2028. At the heart of this transformation is the omnichannel strategy, which will play a pivotal role, aiming to identify at least 25% of players. With a clear strategy and a strong commitment to execution, I'm confident in our ability to deliver our 2028 ambition. Thank you all for your attention. I will now hand over to Nils Anden, who is going to explain how online betting and gaming will bring substantial growth in the years to come. But before that, let's take a moment to have a quick look at the innovations we are bringing to instant gaming in France. Thank you. [Presentation]

Thank you, Patrick, for that very exciting presentation about our lottery and retail sports betting unit. So good afternoon, everyone. My name is Nils Anden. I'm super excited to be here today to show you why FDJ United is uniquely positioned to take advantage of the dynamics in the online betting and gaming markets. I will over the next 20 minutes or so, show how we will outgrow the market through our proprietary technology advantages and continue to drive increasing operational leverage while delivering growth and expansion. Our ambition is very clear. We are going to excel at profitable scaling and generate revenue growth and faster margin growth. This relies on 2 key levers: outgrowing our markets using our proprietary [ ONE ] platform and in-house products to create great customer experiences, which translates into a high single-digit revenue CAGR through 2028. This is purely organic in our existing market footprint. We're also going to create high operating leverage through increased automation and standardization while maximizing the synergies within the larger group, resulting in an elevated EBITDA CAGR compared to our growth CAGR, leading to an EBITDA margin above 30% by 2028. If we look at the OBG business unit, our online betting and gaming business serves a 3.8 million strong active base and covers all key product verticals. Ten 100% regulated or regulating markets, 11 brands, with Unibet, our flagship brand being one of the truly pan-European multiproduct brands. And we also have a rapidly growing top 10 online casino B2B provider in Relax gaming. We are truly multiproduct, multi-brand and multi-market business, which gives us a unique position in the market. Sports and casino are key revenue drivers. These 2 product verticals accounting for just shy of 90% of our revenue. However, Relax gaming, poker and bingo are still key in driving incremental revenue and scalable EBITDA. From a market perspective, the big 3 markets we have, France, the U.K. and Netherlands drive a majority of our revenue, but the split is relatively even between the 3. And it's also important to remember that the remaining markets also have a strong contribution, making our portfolio more diversified than many of our peers. From this wide base of products and markets, we produced strong results in 2024, generating over EUR 1 billion in revenue and just shy of EUR 300 million in EBITDA at a 28.5% margin on a pro forma basis. We believe our business is in fundamentally attractive markets. The online gaming industry is resilient, with it significantly outperforming GDP and even growing during the last 2 recessions. Going forward, if we look at the next 3.5 years, it's forecast to have strong growth, with the markets we operate in specifically expected to grow above 6%. And critically, we have room to outgrow the market by taking market share, with many of our markets being fragmented and the industry in its early phases of consolidation. In 7 of our 10 markets, we see the top 3 operators having less than 70% market shares. One of those 3 being France, where we do have a top 3 position. So why is that important? It means we -- there is plenty of opportunity to consolidate and increase our market share. However, to unlock the full potential of these markets, operators today must take height for the evolving dynamics in the market and create not only the right strategies to adapt to them, but also build the right scalable assets and capabilities. We're not blind to the changes many of the markets have undergone in the last couple of years. And hence, our full focus is to excel at navigating these challenges to truly unlock the full potential of each market that we operate in. So how are we going to ensure that we can excel in this very dynamic environment? In essence, we see strong long-term value creation in 3 main areas: growth, operating leverage and being able to take our winning formula to new markets. In order to capture our existing markets' potential, we must do more than just maintain our market share. Therefore, we have put outgrowing the market as a core pillar in our strategy by delivering a differentiated customer experience to our core customer segment. More to come soon. Our second strategic pillar is operational effectiveness. We will continue to deliver significant efficiency savings, not only through automation and AI and synergies, but also through shifting to a more scalable fixed cost structure by further enhancing our product control. We will then deliver this winning formula of high operational effectiveness, core customer focus and differentiated CX on our industry-leading One platform. This sets the foundation for successful expansion, with us able to take this winning formula to new markets or acquired brands using our One platform. While that might not be in our base case, this is a clear additional upside that we can deliver on. Let's now go a little bit more deeper and look at how we are going to outgrow our existing markets. As mentioned, we're talking about these core customers. We need and want to focus on a sustainable, loyal customer who plays for fun. We call these core customers. These sustainable customers are far more resilient to regulatory change, often playing below affordability limits, but still have attractive lifetime values due to their loyalty and high margin play, making our overall unit economics very attractive. Building the experiences and tailoring our products to this segment ensures we can acquire and retain better and future-proof our business to any further regulatory changes. While these customers today represent, as you can see, roughly 20% -- 21% of our active base, they represent over 70% of our revenue. And this is up from 18% and 54%, respectively, in 2020, showing our proven ability to win in this segment. Going forward, as mentioned, we will continue to focus on this segment, with them expected to represent 24% of actives and roughly 80% of our revenue by 2028. And this will all build on our already loyal customer base. As you can see, 77% of our revenue in 2024 came from customers acquired in previous years. But not all growth is equal. We want to grow sustainably. And our goal is to continue to create a sustainable customer base where we use our strong capabilities to continue to reduce the percentage of revenue from high-risk players. We have successfully deployed cutting-edge responsible gaming tools across our markets that has supported and will continue to support the positive trajectory and our increased focus on preventive first approach. The strength and focus on our core customers will support this journey towards sustainable growth. As mentioned, the second leg of outgrowing the market is our enhanced product control. That is a key part of driving this great experience, and it allows us to create experience that are tailored to our customers' needs that are also differentiated versus our competition, giving us a true competitive advantage. Currently, we fully own our own poker and horse racing products, as well as a variety of exclusive casino games. However, going forward, we will fully own our sports betting as well with the full rollout of KSP and continue to develop our exclusive games library through Relax Gaming, our in-house casino provider. Let me now dive a little bit more deep into how our 2 main product verticals will contribute to our growth. We'll start with sportsbook. KSP is live in Estonia and 32Red in the U.K., 2 smaller markets for us, but is performing well, seeing strong margin and relative revenue performance. The KSP is already a strong functioning sportsbook, and we are improving it rapidly with more than 70 new features expected between now and the end of 2025. But what's more exciting is that we've had the opportunity, and we are doing it to build a true next-generation sportsbook without legacy that can really drive true differentiation. And that is exactly what we are on course to do. KSP will deliver a true data-driven and personalized player experience using the latest technology and AI to ensure that our customers get the exact events and rewards they want. It also has best-in-class and high-resolution trading and risk management tools to ensure that we can run highly efficient, real-time trading operations. It has a slick, modern and engaging UX that is truly differentiated and innovative. And coming back to the core customers, it also has a strong design and development emphasis on high-margin entertaining products, such as combos and bet builders, in parallel with the state-of-the-art reward center. In casino, the second main product vertical, we have a wide game library of over 4,500 games. And we are driving growth using NextGen personalization to ensure that we can recommend the best game for each individual customer. And we additionally have a very strong proprietary games library, thanks to Relax Gaming. Their network games comes with significant cost of sales synergies, and their collaboration with us is also in part what has driven Relax Gaming's rapid growth, and we'll continue to do in the future. We complement this strong library of games with innovative features that bring extra enjoyment to our customers, whether it be filters that allow players to more rapidly find the games they're looking for, free-to-play games that incentivize customers to regularly come back to our site or the new cross provider jackpot tool that we built in partnership with Relax that we will release later this year that will allow our customers to turn any game into a jackpot game, creating an even more entertaining experience. Going forward, we will continue to innovate in the casino space, whether it be new features, exclusive games or adding the best games to our library. This would be a driver for an even better experience for our customers and further improve our capability to drive growth. All of this that I've just gone through will build on what is already proven to be a great customer experience. 62% of our customers who play with other operators say that we offer the best gaming experience out of all the operators they play with. And 92% of all our players say that the experience exceeds their expectation. However, we never rest never satisfied. We want to continue to improve this further. We already have a track record of doing it by improving our Net Promoter Score by 10 points in 2024 alone. But our strategy is really key to supercharging these efforts. Come to the second key strategic circle is a continued strong focus on increasing our operational effectiveness. The efficiency gains you see here are part of the performance plan Pascal will touch upon a little bit later in today's presentation. But specifically for the OBG business unit, this entails using the larger scale we have as a group to streamline our supply cost. We will transform our commercial department to ensure it's ready to really take advantage of the latest technology. And we will build on the next-generation marketing technology we have already implemented. We will embrace automation across the business, including having augmented customer service operations and AI-led tech development. And we will evolve our operating model towards leaner ways of working and structures. In addition to this, as I said earlier, we are evolving our P&L structure towards a higher share of fixed costs due to the greater product control, with 60% of our revenue expected to come from in-sourced products by 2028. Showing a little video here, which is really a reflection of the work we're doing to further automate our marketing and rewards strategies to ensure consistency and facilitate optimization. We have created 2 things called AAMP, which is an automated advertising and marketing platform and create, which are proprietary AI-driven creative and campaign tools that allows us to rapidly build new marketing creatives, put them in production and A/B test them to ensure optimal output. We call this the FDJ's casino GPT. It's actually very unique in its ability to automate, localize and deploy marketing content efficiently by compiling data inputs like localized offers, terms and conditions and creative assets to create tailored campaigns. This can be used in a variety of outbounds comms, including acquisition campaigns and CRM campaigns. But the launch of this tool has taken our campaign creation time from averaging 2 weeks to averaging under 20 minutes. If we move on, all of what we've described will be done on our One platform with all our markets and brands fully migrated to our player account management platform during 2026 and KSP our sportsbook fully rolled out by the end of 2026. This really allows us to scale our winning formula of customer excellence and operational effectiveness across all our brands and markets, enabling us to drive high operational leverage and cross market growth. It is a large contributor to the efficiency savings, as highlighted earlier, as part of the performance plan and at the same time, drastically increasing our scalability. Our One platform also enables us to rapidly launch new brands, end markets, as well as integrate any potentially acquired companies, thereby ensuring we can scale our winning formula beyond our existing footprint. We circle back to the growth aspect. You can see we expect growth across our 3 main markets in the blue bar, but also from our smaller markets. We believe diversification is essential in ensuring we are resilient to regulatory changes in any individual market and that we can maximize our addressable market. Therefore, we will also continue to push for diversification going forward in 2 ways. Firstly, we will efficiently leverage improvements across markets and brands using our One platform to drive cross-market improvements. And secondly, as mentioned, while it's not incorporated in our financial projections, we will have the capacity to penetrate new markets organically and inorganically. Not only does this represent potential -- additional revenue upside, but it also creates an opportunity for further diversification. Another key growth driver that relies on our broad brand portfolio that really allows us to maximize our addressable market proposition. Having this also on One platform is a distinct advantage as it enables us to scale our winning formula across brands and rapidly deploy new brands. We will start by capitalizing this by turning 32Red into a pan-European brand. Starting right now by launching it in Romania imminently, offering a more internationally casino-focused brands to compete with the 2 brands we already operate in Romania, Unibet and [ Blood Casino ], a locally focused casino brand. This is a key benefit of having a strong, diversified brand portfolio on a single platform and will drive further growth for the group. We are ultimately building the foundations for expansion and going through a transformation of our business. This includes getting all brands and markets onto One platform, rolling out KSP, truly transforming our marketing capabilities and delivering an augmented customer operations. This means we are now in a position to start transitioning from focus on building and transform to growth and expansion. This is not just, though, about delivering new brands, markets and M&A, but also accelerating growth within our existing market footprint through delivering a fantastic customer experience. Summing up, we believe our strategy will enable us to outgrow the market with a high single-digit CAGR. This means building strong positions in our key markets. Today, we have podium positions in France, Netherlands, Finland and Denmark and top positions in Belgium and Sweden. Our midterm ambition is, thanks to our winning formula, ensure we have podium positions in all our markets, with U.K. being the obvious laggard due to the size of the market, still a fantastically attractive market. While doing this, we will achieve operational leverage, driving at least EUR 60 million in efficiency savings by 2028 and achieving a higher EBITDA CAGR than our growth CAGR. We are bringing all our brands and markets onto One platform during 2026, ensuring that all our markets can benefit from these improvements. And all of the above means that we are really well set up to engage in further accretive organic and inorganic expansion, taking our winning formula to new brands and new markets. Putting this all together, we believe that we offer a unique value proposition to fulfill our ambition to be a leading European regulated gaming company excelling at profitable scaling, generating fast revenue growth and faster margin growth. Thank you so much for listening. I'm now going to hand over to Giovanna D'Esposito for the International Lottery part, which will be very exciting. Thank you.

Good afternoon. Thanks, everybody, for being here. My name is Giovanna D'Esposito. I joined FDJ United a few months ago as Chief International Lottery Officer. In the next 15 minutes, I will take you through an outline of where we are currently with our International Lottery business, where we intend to get to and why we are confident that we have the right strategy and that it will be effectively supported by group assets and group capabilities. Our current international foothold includes lottery operations in Ireland following the acquisition of PLI in 2023, a joint venture called BZP, which is an instant ticket printing facility producing over 9 billion standard units. These are premium tickets that we also use in our Irish and French lotteries, among others. And iLottery solutions supported by our interactive factory, a platform that we successfully used with Nordics lotteries and other European lotteries, currently generating about EUR 90 million in GGR. Let's now zoom on PLI. Today, with the license secured through 2034, PLI enjoys 98% brand awareness. In 2024, it generated about EUR 370 million in GGR, of which 2/3 were transferred to good causes, and delivers a 26% EBITDA margin that we are going to improve visibly over the next few years. This is a robust, well-managed national asset where we are already generating clear improvements as a group. Looking ahead at the 2025-'28 period, PLI is expected to grow revenues by mid- to high single digit annually. Growth and scale will be accelerated through a disciplined plan and through group synergies that will start yielding results already in Q4 this year. This includes redesigning our game portfolio, thanks to learning from FDJ France, both in draw-based games and scratch cards. We will introduce new game formats already towards the latter part of this year. And next year, we are revamping certain products such as our Loto or Daily Millions. Then pressing on digital innovation, expecting to deliver about 20% of total sales in a lottery similarly to France, as Patrick explained. Investing in the optimization of our retail network. Looking not only at improving our footprint, but also introducing innovative distribution such as self-checkout systems. And operational leverage, which will be achieved thanks to a double-digit improve in EBITDA. These improvements in our margin are driven mostly by cooperation with the group. So shared services, platform integration and procurement gains, for example, the scratch card production that I mentioned initially and also in digital content. Now PLI is our first international lottery operation, but of course, the opportunity landscape is much broader, and we are actively looking beyond Ireland. Our vision is to become a multi-jurisdictional lottery leader. We approach this with what we call global focus, local fit. This means maintaining focus on our strengths and assets everywhere we go, and at the same time, adopting the operating model to the unique regulatory cultural consumer dynamics in each market. We bring 3 strategic advantages to this effort. Operational excellence, FDJ United is globally renowned for this. Innovative and proven digital stack and long-term relationships and credibility with institutional as well as commercial partners. We are globally recognized as a leading force in compliance in responsible gaming and in sustainability in relation to our players, in relation to society and also sustainability in our financial practices. We believe that this is a very effective combination to deliver our ambition. So how do we get there? Our strategy rests on 4 pillars. First, we want to leverage our European foundation, where we already understand the regulatory complexity and consumer behavior. So priority given to European markets, even though we will pursue opportunities elsewhere if we believe that we have the right to win. Second, we'll approach our growth through models that adjust to different markets. I will comment a bit more on this in a few moments. Third, we are looking to build strategic partnerships, both locally or in certain cases, across multiple jurisdictions. This will often be needed to strengthen our local credentials or complement our assets. And fourth, iLottery, which is the fastest-growing segment in our industry and where we have some clear advantages. These are the strategic principles, how we want to execute our strategy. Let me now tell you what we want to do. We have intention to pursue opportunities both organically and through M&A where relevant, in accordance with our capital allocation strategy. Worldwide, there are hundreds of lottery jurisdictions that currently generate about EUR 150 billion in GGR. We will not chase them all. We apply a double filter of attractiveness and accessibility, which means that we prioritize opportunities that are sizable, that are growing, that are profitable, but also we take a very good look at where we can realistically enter, meaning looking at the structure of the license and the competitive dynamics and our own right-to-win. This brings us to a focused set of opportunities that by 2030, will have an approximate total addressable market of EUR 10 billion in GGR. Lottery markets worldwide have diverse operating models. They can range from fully licensed direct operations to central system type of contract. We want to remain focused on what we do well. And we will only operate in those configurations that are a good fit with us, which means as a direct lottery operator, mostly in Europe, as what we call a delegated operator, for example, when some state-owned lotteries outsource part or most of their value chain. And across these 2 models, a third model, which is iLottery, which is a core part of our proposition. With iLottery, we will adopt a progressive approach. For example, starting as a pure content provider in certain markets and then expanding over time to a full turnkey solution. And we are planning not only to embed iLottery within the first 2 models, but also offer it as a stand-alone service. In pursuing all these, we are not starting from 0. As you've heard already from my colleagues, FDJ United has a strong base of 33 million customers. We understand players. We understand their needs and their behaviors. We have access to a large network of over 34,000 points of sale. We know how to work with retail partners. We know how to address their needs and pain points. We have in-house tech assets that are already deployed across 9 international lotteries, and a very rich catalog of games. And we enjoy a clear leading position in responsible gaming and deliver direct measurable impact on society. I would like now to share a bit more about some of these elements and why they make us confident in a successful lottery in the nationalization. Starting from our in-house iLottery asset. The stack that we deploy includes game content, game engines and platform modules that we can integrate with partners all scale directly. Ours is one of the top platforms available, does a lot of things. It offers access to all of FDJ United gaming engines that are among the most advanced in the market. We have multi-steps, multiplayer, progressive jackpots, digital and so on. It can aggregate third-party content with a wide range of mechanics and themes. And importantly, it enables lotteries not only to access our library content, but also to easily produce their own games on the platform. At the core of all of this, there's our distribution aggregation model interactive factory, which can be considered as an open innovation hub. It has been designed to be deployed in different jurisdictions and it can also enable liquidity sharing. We believe that this is a very solid base. And all of this has acquired further competitive edge through the integration of Relax and our online betting and gaming division. Today, we have -- we produce over 7,000 games through the Relax network. And whilst Relax is not currently producing lottery games, its platform and game creation capabilities are a clear potential asset within this segment. Our digital operations and digital marketing capabilities are now stronger than ever, thanks to Kindred. All of this means that we now have as a group content at scale, flexible platforms and proven innovation that supports both growth and margin. As you heard from Nils and Sebastien Rozanes will explain in more detail later today, all of these will be instrumental for a sustainable expansion. For a group like us, sustainable expansion and value generation also carries a strong societal meaning. We consider ourselves as the European champion in responsible gaming and positive societal impact. And on this note, I'd like to conclude with a word on PLI's contribution to this proposition through the Good Cause program. In 2024, PLI transferred EUR 239 million to the Irish Exchequer for good causes. Since the beginning of our license in 2014, we have transferred over EUR 2.5 billion to good causes. PLI is a stronger and more sustainable business today, thanks to FDJ United. FDJ United is stronger at the core of its proposition, thanks to PLI. Contribution to society is the right thing to do, but it also strengthens our operating model, thanks to public support and cooperation with regulators. These are levers that we intend to maintain and to nurture everywhere we go. I'd like to show you now a short video that embodies this spirit. [Presentation]

I believe that we now have a 10-minute break before welcoming to the stage Pascal Chaffard, our Group CFO and Strategy and Performance leader, who will talk to us about much awaited, I am certain, financials and better value creation model. Thank you. [Break]

Good afternoon to you all here with us and remotely. I am Pascal Chaffard, Group CFO, Strategy and Performance leader. Today, I'm going to outline the strong appeal of our financial model. I will highlight its highly cash-generative nature and showcase the value creation we will deliver over the next 3 years. It's a pillar resides in our ability to do all of these at the same time, few profitable growth organically, provide external growth optionality to accelerate further, offer attractive value to all stakeholders, including shareholders with attractive dividends. First, a quick comment to say that we are reiterating our guidance for 2025 with stable revenue compared to 2024 pro forma, an EBITDA margin of more than 24%. As indicated in March, we are mitigating gaming tax increases in France and the Netherlands as well as stricter regulation implementation in the Netherlands and the U.K. I will detail our cost efficiency measures later on. I'd like now to come back to the attractive medium-term objectives introduced by Stephane as part of our Plan Forward 2028 strategic plan. Our growth journey will resume with an average annual organic revenue growth of around 5% over the period 2025 to 2028. The EBITDA margin will stand above 26% in 2028 compared to 24% in 2025, thanks to powerful operating leverage and meaningful cost efficiencies. CapEx will remain at a moderate level of between 4% and 5% of revenue, perfectly tailored to our needs. Thanks to a negative working capital, the EBITDA to free cash flow conversion rate will continue to be above 80%, which we've consistently delivered since IPO. The group will maintain a very solid and disciplined financial structure, strong investment grade with a net financial debt-to-EBITDA ratio of no more than 2x. And finally, a strong commitment to increase the dividend year-on-year with a minimum payout of 75% of adjusted net income. We are very confident in achieving these objectives given our powerful financial model, coupled with a strong performance culture within the group. This slide illustrates the strong appeal of our financial model. It will structure the rest of my presentation. We can rely on a strong performance-led culture in both our business units and central functions, including finance. This underpins our ability to drive robust organic growth, which is compounded by our ability to generate cost efficiencies while benefiting from operating leverage. Leverage is higher online, which validates our growth strategy that strongly focuses on digital. We are asset-light with moderate CapEx requirements due to our third-party owned retail distribution. We have a structurally negative working capital, hence an additional resource as we continue to grow stakes. All this leads to a very high level of EBITDA conversion into free cash flow. We can, therefore, optimize our capital allocation with 2 key priorities on which we will both deliver. Firstly, invest to fuel sustainable and profitable growth; secondly, offer attractive value to our shareholders. Moving on to these points in more details. Starting with the top line growth. Since IPO, we have recorded an average annual organic revenue growth of 5.5%. This year is a transition year for the reason that I mentioned earlier. Looking beyond, we expect our historical circa plus 5% growth trajectory to resume, supported by 2 key drivers: our ability to reinvent activity under exclusive rights; and thanks to the integration of Kindred, our ability to capture a much larger share of the online momentum driving our sector. Note that we don't expect the growth trajectory to be totally linear over time. Indeed, the phasing of increased gaming taxes in France and the Netherlands implies an impact not only in 2025, but also in 2026, with around 1.5% of the group revenue growth softening. Without these lingering impacts in 2026, our new medium-term objectives would compare even more favorably versus historical growth. Note also that our projections take into account all tax and regulation impacts known to date. We have been able to deliver EBITDA growth in excess of revenue growth. With revenue growth resuming next year, we, therefore, expect the EBITDA margin will start expanding again, reaching more than 26% in 2028 from more than 24% this year. This means more than 200 basis points margin accretion in 3 years. As with revenue, margin expansion will be not be continuous -- will be continuous, but not linear. We need to bear in mind the phasing of both gaming tax increases and the cost efficiency measures that we are implementing. In detail, we anticipate an EBITDA margin of more than 35% for LSF and 30% for OBG in 2028. For both BUs, we expect their respective margins to reach at least 2024 pro forma levels as soon as 2027. In March, when we published our results for 2024, we announced a EUR 100 million annual cost efficiencies by 2027. Today, we extend this to EUR 120 million by 2028. As you can see on the chart to the left, this performance plan will have a progressive impact, reflecting its more transformative nature. We are strategically making our business model more efficient in the long term, extracting savings as we go along. This year, we expect the majority of the EUR 20 million to come from short-term savings such as rationalizing marketing expenses or other arbitrable costs like consulting fees. In 2026 and 2027, our business transformation initiatives as well as the synergies coming from the integration of Kindred will start to bear fruits in a very meaningful way. On the pie chart to the right, you can see this cover multiple areas. For example, you have heard from Patrick about retail transformation in France and also Nils about the consolidation of our online gaming platforms in Europe. In terms of BU, more than 50% of total efficiencies will be delivered within OBG, 40% within LSF and the rest within central costs. Our plan is being deployed over time to be the most fruitful it can be in a sensible way. We will continuously review it, assessing progress while potentially identifying new streams of efficiency improvement. In addition to our sharp focus on cost optimization, our cost base being 48% fixed allows meaningful operating leverage. A simulation using this cost splits indicate that EUR 1 of incremental revenue would have converted it to around EUR 0.60 of incremental EBITDA, hence, an incremental EBITDA margin of 60%. This represents a substantial accretion compared to the 25.5% EBITDA margin recorded last year on a pro forma basis. All other things equal, our retail activities in France, despite a larger share of variable costs, namely retailers' remuneration indicates an incremental EBITDA margin of around 50%. Leverage is even greater online, either within iLottery in France or OBG, as you can see on the chart to the left. Leverage then gets compounded below the EBITDA with fixed depreciation and amortization costs. We are asset light because our retail operations relying on third parties for distribution. This translates into moderate CapEx requirements of between 4% to 5% of revenue. In recent years, we were in the upper part of this range, supporting online growth. Going forward, we expect this ratio to trend down, reflecting the shift from CapEx to OpEx within some IT spending relating to cloudification or intelligent -- artificial intelligence, for example. In other words, we were not spending less to support growth, but we were spending differently. It is important to note that this will be neutral in terms of free cash flow generation. We estimate our CapEx needs for 2025 to 2028 to range from EUR 650 million to EUR 700 million. You can see on the pie chart that IT accounts for the vast majority, around 75%. And finally, we have a structurally negative working capital, generating excess cash as we continue to grow stakes. This comes from the time lag between when stakes are cashed in and when winnings and gaming levies are paid. We have levered up to finance the acquisition of Kindred. We have a more efficient balance sheet now versus almost 3 years ago when I was presenting during our previous Capital Markets Day. With financial cost, we have, in effect, added another layer of fixed costs, further compounding EBITDA growth into earnings growth. Yet, we have a very solid financial position. Our long-term credit rating assigned by Moody's is Baa1 with a stable outlook, reflecting its investment-grade status. In November 2024, we successfully placed a bond issue for EUR 1.5 billion with 3 tranches maturing in 2030, 2033 and 2036 with an annual coupon ranging from 3% to 3.625%. In parallel, we finalized a EUR 400 million syndicated loan with top-tier French and international banks, to be repaid over 5 years. We also achieved a good balance between the bond and the bank debt. And most of our debt -- or most of our debt is fixed. The average cost of debt is around 3.5%. So combining organic growth, operating leverage and cost efficiency from an income statement perspective with an asset-light model and a negative working capital from a balance sheet perspective makes us very highly cash generative. Since IPO, we have consistently delivered our target of converting at least 80% of EBITDA into free cash flow, and we are very confident this will continue. This means we have rapid deleveraging potential. Today, we confirm also our expectation to reduce net debt by at least EUR 150 million this year versus EUR 1.8 billion at the end of 2024. So with ongoing deleveraging potential beyond this year, we will also be able to consider external growth opportunities. We will have the flexibility to temporarily exceed our target leverage ceiling of 2x net debt to EBITDA, while remaining investment grade, which is paramount, considering now the 2 business units where we see external growth as a strategic tool. Regarding OBG. The transformative acquisition of Kindred gave us a highly scalable synergetic platform for future expansion through bolt-on acquisitions. Our aim is to either gain market share in existing markets or expand, primarily in Western and Eastern Europe, with a high level of synergies. Regarding International Lottery, we seek to leverage our asset and decades-long expertise. We will consider acquisition of B2C lottery operators like we did with PLI and also opportunities to bid for new licenses or renewals to operate national or regional lotteries. Being so highly cash-generative allows to optimize capital allocation. We can fuel organic growth with sustained CapEx while also being able to consider external growth opportunities without further permanent leverage. At the same time, we can offer attractive value to stakeholders by servicing our debt, making voluntary societal contributions and paying a generous dividend to shareholders. Indeed, over the 2020 to 2024 period, we paid EUR 1.1 billion in dividends, represented nearly 20% of today's market capitalization. Our dividend policy is to increase dividend year after year with a minimum payout ratio of 75% of adjusted net income. In the coming years, our capital allocation will be well balanced between dividends and investments in additional growth. This additional growth is a very interesting upside on top of the organic objectives we have presented today. So in conclusion, FDJ United represents a unique value proposition, extracting the best of 2 worlds, growth and dividend. We will continue to deliver solid, profitable and sustainable organic revenue growth. M&A can provide additional growth, creating more value while keeping a very sound balance sheet. And all this will be achieved while maintaining a high level of cash returns to shareholders. So now I'm pleased to hand over to Sebastien to show you our data and AI will be a catalyst for growth and efficiency.

Good afternoon, everyone. My name is Sebastien Rozanes. I am the Chief Digital Data and AI Officer of FDJ United Group. I'm pleased to be here with you today to share the exciting digital transformation journey we are embarking on at FDJ United, especially around the use of artificial intelligence. To start, let me take stock of where we are today in this journey. First, we've built robust digital assets serving 9 million customers in over 15 countries with a bench of more than 20 mobile apps and 100,000 terminals in our point of sales. These digital assets from today is a bedrock on which we've built strong data foundations from the ground up with more than 300 data experts organized in 5 data factories across the group and more than 300 million analytic events processed every single day. To say the least, FDJ United is a data-rich company, and we have built very solid data and digital foundations. So what's next? As you see, Gen AI and agentic AI are the new frontiers of our digital transformation journey, leveraging the strong digital and data assets that we've built steadily over the years. The purpose of the next 10 minutes together will be to share with you how we are going to build up towards this new frontier. Looking ahead of us, our vision is clear: Leverage AI to elevate gaming experiences and processes to drive responsible growth, reach new standards of operational excellence to improve efficiency and effectiveness and provide a compelling culture to attract and nurture top talents. To do that, as Stephane introduced to you earlier, we are committed to 2 main priorities: First, elevate gaming experiences and customer experience to drive responsible growth; second, improve efficiency to reach new standards of operational excellence. Let me detail this out for you. And to conclude my presentation, I will outline how we will operate this acceleration behind the scenes. So let's jump in. First, chase growth, done responsibly using AI and data as our secret weapon. First step, as we innovate, we are staying true to our responsible gaming roots. This is a big deal for us, as we want to protect our customers, as Patrick and Nils outlined. We begin with the basics, gathering data to better understand our clients. Using part of that data, we are developing cutting-edge cognitive science solutions to detect and desired behaviors, enable real-time risk prevention and reduce underage gambling. Second, marketing excellence. Across lottery and online betting and gaming, we will make the best of every euro invested into building close-knit customer relationship and relevant interactions. In lottery, leveraging our FDJ & Moi omnichannel program and with AI-driven segmentation, we can really get to know our customers. This allows us to tailor our messages and offers, making sure every interaction hits the mark. In OBG, we are developing our AAMP platform, as Nils mentioned, our next-generation marketing engine, a platform that combines local inputs, individual customer data to develop more targeted and more effective marketing campaigns. Besides, thanks to AI, we will accelerate the rollout of campaigns by up to 10x, automating all steps, from design and orchestration of [ campaigns ] and content creation, deployment of the content and feedback collection. And third pillar is our next frontier in client relationship management, the personalized gaming experiences. Imagine having a virtual coach that gives you real-time tips to make better gaming choices. It analyzes historical sports data to show you the winning probabilities and offers personalized advice. This isn't just about playing the game. It's about experiencing it to a whole new level. The assistant will also be available 24/7, enabling our customers to get the answers to the questions faster. On top of this, we will expand the depth and the richness of graphic design of our online casino games, thanks to the power of generative AI. Finally, we are enhancing personalization with a Netflix-style algorithm, creating smarter, more tailored online navigation and experiences and game recommendations that boost engagement and drive results. In short, our growth strategy is all about striking the right balance. We are not just expanding. We are doing it responsibly and with our customers in mind. Next, let's dive into how AI is taking our efficiency to the next level. First, our duty is to uphold the highest level of compliance to protect our players, partners and our group. It's at the heart of our DNA. AI will be an extraordinary enabler to tackle fraud and money laundering head-on. With AI-enhanced investigations, we will catch issues faster, detect more complex schemes and enhance communications with our regulators. Secondly, when it comes to customer-facing interactions, we are automating processes so our sales and customer service team can focus on what truly matters, building real human interactions. We want to make it about understanding our customers deeply and delivering exactly what they need. For example, our 3-year plan includes that up to half of digital customer interactions, the most common and higher volume will be handled fully by AI. And we are already on our way, accelerating fast. This also applies to our sales and retail lottery business. One of the standout features we are introducing this year in our augmented field sales force environment and that we demonstrated that VivaTech 2 weeks ago is a powerful AI-enabled voice assistant. After meeting with 1 of our 28,000 merchants, our salesperson jumps into his or her car and starts a conversation with the assistant to debrief from the meeting. It's like having a personal assistant in the pocket on the road, providing a wide range of assistance from writing a structural report up to taking targeted actions based on this report. And this is where the agentic AI comes into play. We call it Lucia. At the end of this presentation, you will have a short video, specifically on Lucia. Now you might ask me how are we going to do this? For this, let me briefly share how we will transform to perform this data and AI acceleration. We talked about the cutting-edge productivity tool that AI enables. This transformation starts, of course, with technology, but it goes way beyond that. It's about empowering every single FDJ United employee and building a powerful ecosystem. But first, on tech, we are tapping into OBG's pure-play assets and expertise to upgrade our tech foundations across the group. By leveraging this expertise, we are already building our next-generation tech platforms, anchored on cloud first analytics and open source to enable scalability. For this, we are also partnering with leading global tech firms as we progress on our journey. Second, on people, we are also committed to developing a common culture and shared expertise through global upskilling to data and AI. We will make it very concrete. We commit to train 100% of our staff to data and AI by end of 2026. And we are already on our way. For example, last month, we onboarded the top 100 leaders of the company into this AI journey. This leadership group showed a lot of drive and desire for transformation with AI. They committed in this session to take actions. Next step is, of course, equipping all our corporate functions with specialized AI agents, such as an HR agent, legal agent or finance agent. The goal is very, very clear: boost productivity and refocus on high-value tasks. For this, we are building the FDJ United Agent Store to enable all functions with task automations and Retrieval Augmented Generation, or RAG, for every area of expertise. On top of this, we have assembled a team of more than 300 data and AI professionals as we integrated key drive into the group. This is a really powerful strike force to build and transform. Finally, through FDJ United Ventures, our corporate venture capital fund, we've invested EUR 70 million so far in tech start-ups to infuse disruptive innovations into our business, including EUR 25 million in AI start-ups. And we have more than EUR 40 million more to deploy by end of 2028. With this, we support trailblazing startups, and we build an ecosystem that we can leverage internally to open new avenues in our business. This investment strategy ensures we are constantly pushing the boundaries and exploring new frontiers. In summary, transforming together with AI is about more than just technology. It's all about the people and about building a stronger, more agile organization where every employee is empowered and equipped with AI to contribute to our shared success. Our leadership is on board, this transformation journey and ready to act. This is setting us up for a future where we lead in the industry, not just follow it. Thank you for your attention. Let me give the floor to Charles and Vincent, who will share our ambitious trajectory towards sustainability. And before, as promised, let me give you a quick sneak peak into Lucia, our new AI assistant for our lottery sales force. Thank you. [Presentation]

Good afternoon, everyone. I'm Charles Lantieri, Deputy CEO of FDJ United, and I'm pleased to present our sustainability strategy. I will share this presentation with Vincent Perrotin, who is the Chief Sustainability Officer of FDJ United. I will outline our main objectives, and Vincent will explain how we are achieving them. Sustainability is strategic for FDJ United to create long-lasting value for all stakeholders. This strategic conviction is nurtured, of course, by our history since the creation of the National Lottery in 1933 and even more by the strong commitments we have taken in the past 30 years and that we are taking to the future. Furthermore, in FDJ United chase, our model of growth and profitability have always included awareness of non-financial impact of our activity. Because FDJ United has been created for solidarity with the veterans of the First World War, so called the broken faces. And nowadays, solidarity is a purpose at FDJ United Foundation, which helped 370,000 people since 2018. And because player protection has always been our concern. FDJ has been one of the first gaming operators to develop a comprehensive responsible gaming program. It has been having the best level of certification among lotteries for many years. And at the end of the day, this commitment towards players and more broadly society makes sustainability a fundamental part of the brand value. As an example, FDJ which sees a lottery and retail sports betting brand as 97% of awareness, as Patrick mentioned. This brand value significantly contributes to FDJ United's share value. Beyond this contribution to the value, sustainability is a fundamental asset of our activity. It strengthens our legitimacy to operate the monopolies, which will remain the main source of rentability for many years. And this legitimacy is a strong asset at the time when we have to candidate to renew our monopoly license first in Ireland, and then in France. Furthermore, it's a source of comparative advantage in competitive markets and online betting and gaming markets, considering the evolution of the regulations to be ready to comply with them. And finally, it gives us a framework, a strong know-how to address other markets, especially considering the international lottery strategy that Giovanna D'Esposito described earlier. This conviction have fueled our work to define FDJ United new purpose. Indeed, FDJ United is not only a new brand, but also a new company with new dimensions following the recent acquisitions. And so we decided to redefine its purpose to take this new reality into account, but also confirm our fundamentals. And this work on this new purpose has been an opportunity to highlight commonalities between the components of the new group, especially FDJ, Kindred and PLI. This purpose that you can read on the screen states that FDJ United intends to inspire the future of safe and entertaining lottery, gaming and betting with positive impact on society. It has been included in our status, and several commitments are associated to it to drive operational goals, in particular, in respect to our sustainability strategy. FDJ United's sustainability policy, of course, exhaustively covers the different topics of economic, environmental and social responsibility. And this was recognized by the score of 71% given by Moody's ESG solutions. But to respect the schedule, I will not give you an exhaustive view of this extended commitment, but I will focus on the heart of the strategy, which is based on 2 pillars: address risks and externalities; and beyond that, amplify positive impacts. The first pillar, address risks and externalities. Responsible gaming is core to our business and industry. Player protection is key for our customers and for the regulation authorities. That's why we want to go on setting industry standards. Second, decarbonization is core to every company. At this crucial point, we have committed to have a target of carbon emissions reduction, which is in line with Paris Agreement. The second pillar amplifies positive impacts. Redistribution to various stakeholders is, by nature, characteristic of our activity model, especially lottery. It includes the financing of good causes and more broadly, general interest. But beyond that, as a committed company, we aim to add a positive impact for society and for environment, which includes everything we will do proactively to amplify our positive impact on our social and environmental ecosystem. And these are not only words. We have clear commitments that I can illustrate to you with a few KPIs. On responsible gaming, we have decided to expand our ambition of dedicating 10% of media budget to preventive communication. This target, as you know, has been implemented since 2021 at FDJ's scope and is now extended to the group level. We also commit to reduce GGR from high-risk players. FDJ and Kindred were the first operators to have such a commitment, and we still are the only ones. We have continually reduced this ratio for the last years. And as we are currently working on the best way to provide a group-wide view on responsible gaming, we will publish the new associated KPI in 2026 once we have the consolidated view. On decarbonization. Now, our decarbonization strategy is compliant with the CSRD requirements. 2 key performance indicators are linked to carbon emissions across all scopes that is including our entire value chain. Minus 42% carbon emissions across Scope 1 and 2 and minus 25% carbon emissions across Scope 3 by 2030 compared to 2022. We have a clear action plan on 5 main areas to address this decarbonization for its trajectory: game material, IT, sales, mobility and real estate. And of course, to commit the whole company on this goal and all these goals, some of them are, of course, taken into account for short-term and long-term incentives for employees and the top management. I propose you to dive now into the positive impacts. Our business model is specific to the lottery, gaming and betting industry. It distributes values to all stakeholders. You can see on the screen a selection of figures that we track every year to measure the evolution of our positive impact towards our stakeholders beyond shareholders' remuneration. As Giovanna underlined, good causes are highly important in Ireland, and we have implemented a similar approach in France with Mission Patrimoine Mission Nature. These are games with a cause for which our activity financially contribute above the EUR 4.5 billion we pay to general interest through specific gaming taxes. Another example is the EUR 1 billion remuneration we pay to our retailers that are also a very important contribution to the vitality of our territories in France and in Ireland. And on top of the model of redistribution, we are building a unique approach by giving back to society and the environment to provide a positive impact. We have decided to progressively commit to allocate 5% of our net income to society and environment in 2030, knowing that today, we are at the level of 2.7%. But Vincent will come back to it. I would like to emphasize to you that this commitment is strong and is very important too. It's made because we are convinced that we must contribute to a more sustainable world. While reducing risks and externalities is important, it's not enough in a context where our planet and our societies are facing major threats. We believe that businesses must do more than offset their externalities. They must contribute to a better life. Taking into account who we are and what are the main threats of our environment, we have decided to concentrate this impact on social inclusion on one side and biodiversity preservation on the other side. And we have computed that without significantly impacting shareholder remuneration of the company's investment capacity, as Pascal told you, 5% of the total net profit of FDJ United could have a real impact. Vincent Perrotin is now going to give you more details on these important topics, and on the way we operationalize this strategy. Vincent, I'll give you the floor.

Thank you, Charles, and hello, everyone. I'm Vincent Perrotin, Chief Sustainability Officer for the group. As Charles just presented it, responsible gaming is at the heart of our sustainability strategy. Our player protection strategy is based on 3 pillars: prevention of underage gaming, prevention of excessive gaming and detection and support of vulnerable players. This group strategy is implemented in each of our entities, taking into account the specificities of our different activities and geographies. Our overarching ambition is to reduce the revenue coming from high-risk players, thanks to numerous actions and based on our 20 years of experience and commitment in the field of RG. Our expertise on RG has indeed been constantly rewarded by the European Lottery Certification for more than 15 years. With the acquisition of Kindred, FDJ United now unifies to 2 only actors in the gambling sector that have set an objective and taking actions to reduce the revenue coming from high-risk players, as Patrick and Nils showed earlier, respectively, for our iLottery and online betting and gaming activities. All of this to ensure the sustainable development of our business. Our RG actions are focused on 3 main areas that I will now quickly illustrate: prevention, detection and support to vulnerable players. First, prevention. As a gambling operator, we want to make sure that our clients are aware of the specificities of our gambling products. Gambling is recreative for 95% of the players, but they can be risk for 5% of them and important consequences for 1%. That is why we are the only operator to dedicate a minimum of 10% of our media budget at the group level to RG campaigns and communications both on TV and digital to inform the public and prevents both underage gaming and excessive gaming. We systematically measure the positive impact of these campaigns, and the results show clearly that they are efficient in raising awareness among our clients and also that they contribute to strengthen our brands and to build trust with our clients. Next, detection. At FDJ United, we are strongly committed to fighting against excessive gaming, and we constantly develop new tools to better detect risky behaviors. Our ambition, as outlined by Sebastien, is to capitalize on data and AI to further enhance player protection. We already use data in AI cutting-edge technologies to better detect risky behaviors. For instance, we have developed and launched in 2025, our own risk detection model for French iLottery called FDJ Protect. We also use data to develop personalized automated interventions, for example, towards our online betting and gaming clients, thanks to a tool called Crucial Compliance. But we want to go beyond that and to innovate further. First, we are developing predictive models to enable earlier detection of harmful behaviors and more preventive measures. Second, we are currently working on experimenting real-time detection and intervention measures to be able to act preemptively and first limit harm for our most at-risk players. This preventive approach to detection will help us focus marketing efforts on the good clients and hence, limit our externalities. I will now guide you through our third focus, support to vulnerable players. As I said, our priority is to strengthen our early and real-time detection and intervention capacities to prevent excessive gaming. The ones harmful behaviors are detected, we implement proactive and concrete actions to support vulnerable players. One of our key actions consist in proactive care calls to high-risk players. Here again, we measure our impact to make these calls as efficient as possible. Our goal is to have 80% of contacted players, with the reduction of their GGR observed after the call. As you can see, our ambition is to consolidate our leading positions on RG in our industry, thanks to full main strength, holistic approach to player protection from prevention to detection and support, proactive policy to detect as early as possible, risky behaviors and prevent harm, transparent and consistent KPI set at the group level and adapted to our different entities, and finally, continuous dialogue with our stakeholders, notably through partnerships and research projects to ensure we back our actions on science and improve our efficiency, thanks to feedback from the best experts. After responsible gaming, I will now make a focus on the second most distinctive asset of our sustainability strategy, positive impact. As Charles mentioned, our objective is to go beyond the redistribution of our value creation to our stakeholders and to gradually increase our voluntary contributions up to 5% of our net results in 2030, consistent with our financial trajectory presented by Pascal earlier. How are we going to implement this objective? First, we will dedicate our actions on the one hand to society with a focus on insertion, diversity and inclusion and social vulnerabilities, in continuity with the action of our foundation founded more than 30 years ago. And on the other hand, to the environment with a priority on biodiversity preservation, consistent with our existing partnerships with environmental organizations such as WWF. Second, we will extend our actions at the international level based on our long experience in the field of contribution to society in France. The goal is also to strengthen the footprint of the group in our different countries of operation, as well as to sustain our business development by enlarging the scope of our positive impact model. Now to achieve this contribution plan, we will rely on partnerships with experts, organizations and donations to charities, but also on investments in social impact and nature-based funds. As the first realization of this initiative, we are proud to announce an investment of EUR 5 million in Averrhoa Nature-Based Solutions, a fund led by Ardian in partnership with aDryada, aiming at restoring forests, wetlands and mangroves while contributing to carbon sequestration. To conclude, and as you understood, we are convinced that our strong and unique commitments on sustainability will consolidate our position of benchmark operator in our industry, and more importantly, strengthen our capacity to create value on the long term. Before passing on to Stephane for the conclusion, let's see a short video highlighting our ambition to develop AI-based innovative responsible gaming initiatives. Thank you very much. [Presentation]

So now, conclusion. It's going to be a short conclusion because I think we had a long day. I hope, an interesting day for all of you. I really want to -- actually to conclude by thanking the exceptional people that you've seen on stage for their ambition, their commitment, their energy because for me, it is a key factor to succeed in this ambition that we have been explaining to you today. This ambition, it's on the screen. It's to assert our leadership in Europe as a unique sustainable lottery, gaming and betting operator. We think we are uniquely positioned to do that, as you've seen. We think we have thought clearly about all the execution advantage that we have to achieve this. And of course, we will pursue fiercely, this ambition in the coming months and years. And so now I just want to ask the team to join me on stage, of course, to ask your questions, as we promised. And in the meantime, I think I have a short video while we come all on stage. Thank you very much. [Presentation]

So I distribute the questions, right? So please.

It's Jaafar Mestari from BNP Paribas Exane. I've got 3, if that's okay. The first one is on the mitigation benefits that you expect and you've detailed some of the phasing and some of the mix there. If you could just remind us what sort of implementation costs we should expect for those if they are all going to be exceptionals and if they're going to be front-end loaded in any way or more linear?

Next one? Yes.

Secondly, on the network, a big push towards the branded banners. You already have some, of course, 10%. But doubling that. So just curious if it's more of the same, if there's a new model of those that's being pushed more aggressively? And generally, anything you can say on how those work, if you run them, if the retailer runs them? And if all in all, you expect the number of point of sales to grow or if that's just going to be mitigating some decline at the traditional tobacconist? And lastly, on regulation. I appreciate you've run through a presentation based on what is known, and nobody has a crystal ball, but I would just be curious to know what the watch list is at the moment, if we go back to this map of your territories, what's flashing green. There's no public support. There's no talks. We should assume it's all good. What's flashing amber? Where are you aware that there could be second rounds or there are discussions at the moment?

Okay. So maybe Pascal can say a word on the mitigation costs.

Yes. I thought it was for me. Yes. So on mitigation costs, globally, you have in the P&L, in the EBITDA, the cost that will be in the EBITDA for those mitigation measures. Apart from that, you know that we have below the EBITDA, something like EUR 20 million a year of cost below EBITDA. Last year, it was nearly EUR 40 million due to the cost of the transaction with Kindred. And what would be a good assumption for the 3 coming years, 2025, '26 and '27 would be to have this kind of figure EUR 40 million below EBITDA, a cost that will relate to a number of things and including what is needed to do the mitigation plan.

Okay. Thank you, Pascal. On the network in France. Patrick, do you want to take it? Yes?

Yes, I can take this question. So it's true that our network is, for the moment, mainly. So main -- it's made of 90% of, of course, traditional PoS. In fact, these point of sales in the traditional network, there are some closures. And we are compensating, of course, the closures by implementing our distribution in the new branded banners. These banners, it's -- so it hasn't started recently. We have done some implementation before. I think the change in the strategy is that previously, we were concentrating on small, I would say, proxy outlets, not hypermarkets and supermarkets. Really, the change is we are targeting hypermarkets and supermarkets because the really value creation with those point of sales is much larger. And this is really the shift we are moving towards for. And why are we doing this? Because, in fact, we don't have real opportunities left in the traditional network. So really to compensate for the PoS closures, we have to target the best opportunities we can reach.

So it's just to summarize at the end to your question, which is -- does it increase the number -- the total number of point of sale? No, it's more to compensate the natural decrease that we have in traditional network. Of course, as Patrick stressed, the new point of sales should have in the medium term, a high-value potential because, of course, the level of traffic could be high. So we are just at the start of this, but we think it's a very potential interesting development. On regulation, I think, as you said, no crystal ball. So since we have -- we don't have a crystal ball, I think we've made a careful assessment of the risk that we know on the different markets and of course, included the risk that we know in our total medium-term business plan. So of course, the next increase in Netherlands tax is part of this. We also know that for reasons related to the level of compliance of Kindred before the acquisition, we have some risks that actually are embedded also in our guidance to have fines related to, again, previous actually way of managing this business. I think the best way to -- I would say, to reassure us and you about this is, as we stated, to drive for the best operational excellence and compliance, which actually goes together in our strategy, particularly at OBG, and this is with the best protection. So that's how I can answer this. So sorry, I cannot -- yes...

Ed Young from Morgan Stanley. I've got one for Patrick, one for Nils and one for Giovanna.

So you decide who want to have questions, right?

I'll ask them, and you can decide, obviously, Stephane whether. First of all, in the lottery section, there was a discussion about the relaunch of some of your iconic draw games. I'm presuming that means really marketing and brand push behind them to help your sort of draw-based digital recruitment. But I just wanted to check -- well, first of all, if you could elaborate a bit? And second, just to check if you're changing or plan to change any of the game structures or distribution as a way of supporting your ARPU goals as well within lottery. Second, with OBG markets, it's clearly been a difficult start for a couple of those top 3 markets, but you think that in '28, they'll be bigger than they were in '24. So I wonder if you could just speak a little bit about whether you think Netherlands will really recover well from the levels it's going to at the moment? Or do you expect a particularly strong recovery in the U.K.? Or do you expect outsized growth in France? How do you balance where you've got to with those forecasts? And perhaps you could touch -- I know you said it's not in the base case, but touch on the characteristics of new markets that you would like to enter. And then the final one was on international lottery. In the recent Italian concession, there was a sort of growing theme about cross-sell from lottery into online and into gaming, it's becoming perhaps a bigger theme. Is that an example that FDJ United might use given Kindred's capability? Is that an example of leveraging group capabilities you were speaking about? Or should we listen to your other message, which is about sticking to what you're good at and focusing on the core, so stick to more like French and Irish style lottery as a separate entity?

So Patrick you start with draw games and digital.

You know draw games are really one of the first lever to recruit new customers on the digital channel. So that's why it's very important to maintain a very attractive offer. We, of course, will have to make this offer more and more attractive. And for example, just to give you an example, on Euromillions, we are planning to relaunch next year. We have reached the maximum jackpot we can reach at EUR 250 million. So of course, we know that to attract more and more players, especially on the digital channel, we have to raise this cap. So this is really one of the change we will make on the game to keep really the growth momentum on that game. And we will, of course, consider to relaunch all our iconic games in draw games. Of course, we are targeting our evolution on the key insights that is relevant for each of the draw game. For example, for Euromillions, it's really high jackpot. For Loto, it's a bit different. So we will adapt, of course, the key insights. We want to stress -- we will, meanwhile, have some work on the PL -- sorry, payout ratio because it's key, of course, to try to maximize the stakes to revenue conversion, but we will always have to find a good balance between maintaining the attractiveness of the game for players and revenue -- stakes to revenue conversion. This is not so easy to make. So this is optimization. It's not huge change, I would say.

Okay. Nils?

Yes. Thank you, Ed. If we start with your first question was kind of the balance we see from sort of the U.K. and France in terms of growth rate in the next sort of 3 to 4 years or 3.5 years. I think it's clear that Netherlands is probably the most challenged out of those 3 markets. We saw some of the impact of the regulatory changes in '24, but majority of them in this year and also the fact that the taxation change came in this year and continues next year. I have a fairly positive outlook on Netherlands over sort of the midterm in the sense that the operating conditions in Netherlands are much harder now, and we've already seen a number of operators actually leaving that market, which should lend itself to kind of the top operators taking further market share. But it will be very interesting to see what the regulator can do around the kind of poor channelization rate that we see today with increased tools for the regulator, I hope we can see an improvement on that, which would be a good tailwind for us. For the other 2 markets, U.K. and France, I think U.K., we are -- have a very positive outlook, and I think we see that as a very strong growth driver for us over the next 3 years. And similarly, for France, there are some offsets in terms of taxation changes, but it's clear that the mutualization of our brands and our increased kind of firepower comes with the One platform that will be deployed in France and our new sportsbook, I think, gives us a really good opportunity to take further market shares in France without being too detailed. Your second question, which was in relation to kind of market expansion, right? I don't think I'm going to say here and -- say exactly which market we're going into. But I think the characteristics for us is, of course, that it kind of builds on our scalability. So do we have the right platform to enter this market? Can we kind of utilize the assets we already have? And then, of course, coupled with what does the competitive climate look like? And is there a stable regulatory framework in place. That, I would say, is the characteristics we're looking at.

And just to complement what Nils was saying and actually to what he said in his presentation, to actually be able to scale new markets, we need to have implemented our platform. And therefore, we need this transition year that we talked about, which has started already and which will finish in 2026. So you have to combine this with the criteria, if I may. Giovanna?

Yes. Thank you, Ed. Indeed, with the recent Loto tender, both participating consortiums had an investment thesis that was strongly based on this concept of cross-selling. And elsewhere in -- even outside Europe, in other jurisdictions, there's a lot of talk, as you know, about convergence of OBG with lotteries. We will look at that because we do consider that online betting and gaming is a strength that we have in jurisdictions where the regulations clearly allow that.

Yes, which is in France today, as you know, it would not be possible. So as we said for regulation or antitrust reasons, there are some markets where you can do it, some others where you cannot. And of course, which doesn't mean that you don't use the cross-fertilization and the synergies in your global assets, as Giovanna explained. But when you come to a relationship with the client, then rules differ market for market. And the Italian market is interesting in this regard, of course. Thank you. I think we took your 2, so we're going to continue. Can you pass the mic to...

Sabrina from Bernstein. I have 3 questions also. The first one is regarding the increase of active players, but in point of sales. I remember that we used to say that half of the French are playing already in your game. So to understand where it can come from. The second question is regarding the lotteries opportunities in Europe. You have mentioned potentially EUR 10 billion CAGR -- sorry, GGR, just to understand which type of countries could be interesting for you. And the latest one is regarding the risk regarding the merger of the IT platform. What is the biggest risk behind the merger?

So active player in point of sales, Patrick you want to comment that?

It's true that we have an objective I mentioned, it is to recruit more than 1 million players in the years to come until 2028. A big part of this recruitment will come from the retail network. How can we make it? In fact, we know that when we consider hypermarkets and supermarkets that those point of sales, they have a different type of audience than our traditional network. We have made some research that confirm that we have 5.6 million potential players who do not visit the traditional network and go regularly to a hypermarket or supermarkets. So really, we have a potential target really to be reached through this implementation of our offer in hypermarkets, supermarkets. So it's not really stealing the players that we already have in the traditional market. It's really targeting other customers.

And to your point about our penetration in France, Ireland, 75% of Irish people do play lottery. So the 50% penetration that we have in the French market is high, but it actually leaves some opportunity to get additional players, especially if you go to fight them in different networks.

And over the past few years, we have been increasing our penetration on the French market. So we are already doing this increase in penetration. And with the, of course, opportunity we have in hypermarkets, supermarkets, it's an additional way to grow our player base.

So Giovanna, lottery opportunities in Europe.

So let me just very briefly explain how did we get to the 10 billion starting from the 150. So what we've done, we've looked at jurisdictions where the next 5 years because it was referred to 2030. There are some opportunities that are consistent with the type of models that we want to operate in, so not looking at everything. And with that analysis, we have selected a small number of opportunities that are mostly in Europe, but not only in Europe, as I mentioned earlier on. And the idea is that we'd like to capture part of those EUR 10 billion that is the total value -- the total value in GGR generated by the lotteries. I will not right now single out the individual countries.

Okay. IT merger risk. Nils?

As a very experienced IT manager. But I think, generally speaking, right, in the sense that what we're looking at now is unifying all our client-facing platforms onto one. It's not like we have a majority of that business somewhere else. The majority of our business -- vast majority is on the K-PAM as we call it. And we are very experienced with these kind of migrations and unifications of platforms. We've done 2 very successful migrations this year, one in France for PSCL, not on the K-PAM, but within the French IT system. And we have -- just recently in March, migrated 32Red, our U.K. casino brand onto our in-house platform with great success. I think it took us 3.5 to 4 weeks to index better than prior to the migration. So with careful planning, I'm not concerned that there is a massive risk with this. It's just execution rather than anything else.

Estelle Weingrod from JPMorgan. I've got 2 questions. So to Ed's point, where do you see the highest potential in the online business unit? I mean high single-digit growth seems a little bit ambitious for mature markets, if I may say. So I wanted to know what geographies would drive this high single-digit growth? Or do you foresee high single-digit growth across the board within that unit? And the other question just on M&A. I guess right now, you're busy with the integration and migration and so on. Just wanted to check on potential timing for M&A. Could it be as early as next year?

So on Growth in...

Yes. No, I think it's -- that's a very good question. I don't think we're going to detail exactly how we see the growth trajectory between each and every of our markets. I think to -- as I answered to Ed's question, I think we see a very good opportunity in terms of growth in the U.K., but also actually across a range of our other markets within our portfolio. Some of those markets have higher growth rates. For example, Romania has a much higher growth rate than the rest of our portfolio. So I think we see it kind of spread across our markets, but not evenly spread. But I'm not going to give a detailed answer to that today.

And just to continue on the M&A opportunities and maybe give another view on what Nils just said, just to remind you what we have said in the Q1. Q1, we have said that we were already at high single-digit growth. If we take apart the situation in Netherlands and in the U.K. So when we will resume on those 2 markets by the end of the year, it's not new for us to be able to grow at a pace that is high single digit. So it's already there. Two, on the M&A, I will just continue. As Stephane has said and also Nils, what is important for us is to do synergistic M&A on OBG. So as far as we have not ended our journey to migrate on the one single platform that will allow to do this very synergic M&A, we will not do it. So it will be somewhere in 2026 that we will begin to look again at what is possible. But it's important to do it phase by phase. And on international lottery, it's a little bit different because we have not this kind of thing, and we will begin to look at different potential, but it will take some time to realize it. So beginning to look at the different potential doesn't mean that we will activate it in the coming months because clearly, we will not activate it in the coming months.

Thank you. I see a question here.

It's [indiscernible] from Bloomberg Intelligence. So the first one, when we talk about market share growth, you've mentioned about things like AI, customizing the customer journey, innovation of games. But these are things that all of the scale players are mentioning too. So can I press you a bit more on what is it specifically that you think can grow your sales ahead of the market? Or is it that you maybe expect some more shaking out of the smaller players? And then the second question is, given that you now have the sort of Kindred technology stack within online casino, how quickly and easy is it for you to pivot into new markets should the opportunities in new markets arise? Or are there other complexities that we should be thinking about, too?

Okay. So your first question on growth is on the OBG, right? Yes, Nils?

Yes. Of course, I'd like to give you our sort of playbook here, right? But I don't think that would be appropriate. I think we have a very solid go-to-market strategy for market share gains in every market we operate in. I mean we have a financial profile that would let us invest where we actually see outsized growth than we're kind of expecting. And then I also think that one of the key differentiators for us as a business is that we're actually ahead of a lot of our competitions in this area, particularly what I would say is it comes to being able to utilize One platform across all our geographies, which gives us a much greater scalability in terms of deploying smart tools and smart campaigns or reward mechanisms that work in one territory across all of our territories. So I think that is also one of the key kind of benefits that we have that makes our stand out. And then I think in terms of sort of NextGen marketing, how we work with that? I think we are pretty far in our industry, if I compare to what I've seen from some of our key competitors in this area. In terms of sort of what do we see more broadly, I think given where the regulatory environment is in Europe, I think there are markets where we will see shakeout of smaller players for sure. I think it's going to be harder and harder to maintain a profitable P&L in some of our core markets if you don't have scale in those markets.

And on online casino, your question was -- how do we -- can we and how do we use it for new markets, right?

Not ease in which you can now transition into new markets should the opportunities arise?

Yes. I think it's 2 questions there. Organically, how easy is it? I think from a platform perspective, we have all the tools required, then it's more about sort of the regulatory adaptations that would be required for each individual territory. And then would it be through an M&A? I think it depends again what does the regulatory environment look like, what kind of offering does any acquired target have today. But I think that is also one of the key kind of KPIs we're looking at is, okay, how do we optimize time to market once we decide to go for a market entry.

I don't see questions in the room. Do we have questions online?

We do not have any questions. [Operator Instructions]. I'll just hold one moment.

Okay. So if we don't have any more questions, I want to thank you all for attending this Capital Markets Day. I hope it's been inspiring and instructing. And of course, we are ready to continue to answer your questions, and we will see you a lot certainly during the next month for our next financial communication, including, of course, end of July, H1 results. So thank you very much and see you soon. Thank you.