Player preferences are decisive!

(The CEO commentary is not a part of the audited Director's Report.)

2010 was another exciting year for Svenska Spel. The change programmes that commenced in 2009 have now been completed for the most part and a great deal of energy was devoted to internal operations. We now plan to focus more keenly on customers and how to make Svenska Spel their first choice.

It’s been an eventful year. 2010 started with Sweden’s record-high winnings – a full SEK 214 million, while the "Dream Winnings", which were not paid out at any time during the 2009, were disbursed no fewer than seven times over the course of the year.

Against the background of a tough competitive market, the completion of gaming responsibility programmes and no changes as regards licenses – we managed to achieve completely acceptable earnings. Without our committed and motivated workforce, this would have not been possible. I would like to take this opportunity to praise everyone for all of the efforts during the year.

Change programmes nearing completion

The organisation is now in place, with some minor adjustments and a clarification of roles and responsibility remaining. We have also been mandated by our owner and the Board to raise our efficiency and thus reduce costs. The overhaul is aimed at enabling us to attain our objectives at a lower cost, and includes everything from working methods to procurement procedures.

We remain the major actor in the Swedish market, although we have lost market shares in recent years. There is a strong inflow of foreign actors who are strongly marketing their offering. Moreover, consumers of today spend a smaller share of disposable income on gaming than in the past. Consequently, gearing our efforts to make sure that Svenska Spel is the players’ first choice is thus our point of focus moving ahead.

We have the best offering

Why should customers opt for Svenska Spel? Customers shall feel that we have the best overall offering and we intend to be better at communicating this fact. It’s not just a matter of the payback or who offers the best odds. Svenska Spel’s offering has several dimensions. We aim to continue developing fun games that offer our customers an exciting experience. This involves both the games themselves – namely, that they are dynamic and interesting – and the framework in which our retailers play a key role in the encounter with customers.

We also take responsibility. We are the actor who offers customers the best potential to personally control their gaming. This does not mean that we lecture people but that we inform them of the risks and offer tools that facilitate non-excessive gaming, both in terms of time and money. The fact that we are not compelled to maximise profits permits us to devote resources to taking social considerations into account.

Our customers already view us as a safe and secure alternative and we must continue to be top of the class and advance our customer value in this respect.

We need to be clear and transparent in order to make customers understand why they should turn to our games. This involves offering attractive games, but also entails a political challenge. We need licences to develop new gaming forms as demanded by our customers. To avoid falling behind in development, we must be given the opportunity to compete – and to do so on equal terms.

Innovation and communication

I have confidence in the changes and the initiatives that we have implemented and continue to implement. Focus, clarity of direction and communication, innovation and customer benefit are and will remain our success factors. Employee involvement, commitment and workplace satisfaction are decisive to our results today, and will remain pivotal moving ahead.

Visby, February 2011

Anders Hägg,

President and CEO