Zeal Network Se · XETR:TIMA
Zeal Network — Q1 2024 Earnings Presentation
27 slides from Zeal Network's earnings presentation, May 8, 2024
Slide 1: Earnings Call Quarterly Statement Q1 2024
yA NE \ ~ EARNINGS CALL Quarterly Statement Q1 as of 31 March 2024 08 May 2024
Slide 2: Content
CONTENT CONTENT CONTENT CONTENT © CONTENT ZEAL Tipp2a
Slide 3: Summary
SUMMARY
Slide 4: Strongly accelerated growth of billings and revenue
Strongly accelerated growth of billings and revenue
Slide 5: Financial Update
FINANCIAL UPDATE
Slide 6: Very good jackpot environment - peaks in Q1 2024 vs. Q1 2023
VERY GOOD JACKPOT ENVIRONMENT - 4 PEAKS IN Q1 2024 VS. 0 PEAKS IN Q1 2023 In€m LOTTO 6aus49 in€m Average Peak max. (new) 0 4 (old) F 40 ! 20 - 10 Q1‘23 18 10) 123 4 5 67 8 9 0 1 2 3 4 5 6 17 1 19 20 21 22 23 24 25 26 Draw In€m tok tok Eurojackpot in€m Average Peak 120 max. 100 : 80 i 44 4 60 : 40 :
Slide 7: ZEAL Income Statement Q1 '24 - Condensed
ZEAL INCOME STATEMENT Q1 ‘24 - CONDENSED ® REVENUE ‘ Revenue increased by 35% due to a strong increase in MAU and gross margin INCOME STATEMENT a 24 a 23 CHANGE (in €k) (in €k) (in %) 20 COST OF OPERATIONS Personnel expenses: - ° REVENUE 36,100 26,699 #352 Personnel expenses increased by 22% driven
Slide 8: Cost per lead below Q1'23 and Q4 '23
COST PER LEAD BELOW Q1’23 AND Q4 ‘23 In€ Q1 Q2 Q3 Q4 Full Year 2024 2023 45.52 Temporary increase in competitive pressure in online marketing during a high jackpot Launch of major advertising campaign for LOTTO24 to increase brand awareness * Brand campaign is already leading to positive contributio
Slide 9: Lottery billings grow faster than market driven by user base and billings per user
LOTTERY BILLINGS GROW FASTER THAN MARKET DRIVEN BY GROWTH IN USER BASE AND HIGHER BILLINGS PER USER MONTHLY ACTIVE AVERAGE BILLINGS PER-_ BILLINGS USERS (MAU) USER, ABPU (Lotteries) (Lotteries) (Lotteries) in € millions in thousands in€ +1% +22% 60.99 — 61.59 a 246.3 a ' Q1'23 Q1'24 Q1'23 Q1'24 Util
Slide 10: Stable lottery gross margin
STABLE LOTTERY GROSS MARGIN GROSS MARGIN NEW REGISTERED COST PER LEAD, CPL (lotteries) CUSTOMERS Crotteries) (Lotteries) in thousands +124% 320 +0.9 pp. -10% —— > 13,3” “a 12.4 36.77 —_—_—s 33.04 a : Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Gross margin increased due to a changed Strong jackpot situation
Slide 11: Progress and Guidance
PROGRESS AND GUIDANCE
Slide 12: Update on progress towards strategic goals for 2024
UPDATE ON PROGRESS TOWARDS STRATEGIC GOALS FOR 2024 Our Strategic Goals for 2024 Improve billings margin in lottery brokerage business Increase brand awareness, marke-ting efficiency, customer retention Grow Games business Launch new charity lottery ZEA Optimization of billings margin by increased s
Slide 13: Higher lottery billings margin in Q1 '24 driven by improved product mix and price optimization
HIGHER LOTTERY BILLINGS MARGIN IN Q1 ‘24 DRIVEN BY IMPROVED PRODUCT MIX AND ROLL-OUT OF PRICE OPTIMIZATION BILLINGS MARGIN (Lotteries) in % 13.3% — | Q1‘23 Product Mix Price Optimisation Q1’24? Big Win in Q1‘24 “Traumhauslotterie” ? Excluding €0.8m effect from big win at “Die Deutsche Traumhauslotte
Slide 14: 450,000 400,000 • 350,000 300,000 • 250,000 Q3 ‘20 Q4 ‘22 0,000 Q1 ‘22
450,000 400,000 • 350,000 300,000 • 250,000 Q3 ‘20 Q4 ‘22 200,000 Q1 ‘22 150,000 Q1 ‘21 • Q2 ‘21 100,000 Q1 ‘23 Q2 ‘22 Q4 ‘21 50,000 Q4 ‘23 0 0 10 20 30 40 50 60
Slide 15: Games business continues to show attractive metrics and growth
GAMES BUSINESS CONTINUES TO SHOW ATTRACTIVE METRICS AND GROWTH PAY-INS ABPU g Games business successfully started in Q2 ‘23 in € millions in€ . . 63 4810 New Games offer is well received — 51 449-1 . full business roll-out still in progress 33 306.2 <2 Continuous expansion of games portfolio We rece
Slide 16: Guidance 2024 confirmed
GUIDANCE 2024 CONFIRMED 2024 GUIDANCE 2023 Actuals 140-150 1161 (+21- 29%) Revenue” 38-42 EBITDA” 329 (+16 — 28%) ? Including income from jackpot insurance; Excluding transaction costs in relation to planned squeeze-out transaction at Lotto24 Guidance for FY 2024 based ona average jackpot environmen
Slide 17: Key Take-aways
KEY TAKE-AWAYS
Slide 18: Key Take-aways
KEY TAKE-AWAYS ® ZEAL with very strong start to the new year @ Customer acquisition performed very well é Further expansion of investment into brand building 20 Games on track DEINE LOTTERIE FUR MEHR LEBEN (34) Tipp24 fresheit* TIT NU ZEAL @® Tpp2t ZEAL GE) Gases ZEAL
Slide 19: Question / Answer
Question Answer
Slide 20: Disclaimer
DISCLAIMER The information contained herein must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other person | or used in whole or in part for any other purpose. | This document contains certain forward-looking statements relating to the b
Slide 21: Appendix
APPENDIX
Slide 22: Consolidated income statement and balance sheet in €k
CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET IN €K Q1‘24 Q1°23 CHANGE 31/03/24 31/12/23 CHANGE BALANCE SHEET . a in INCOMESTATEMENT | (ink) in€ Cin %) Gn© Gin) Gin %) Revenue 361100 26699 +552 Current assets 106,044 92,634 4145 Total costs of 27137 “17579 +544 operations Non-current assets 318,36
Slide 23: Business unit segment reporting as of 31/03/24 in €k
BUSINESS UNIT SEGMENT REPORTING AS OF 31/03/24 IN €K GERMANY OTHER TOTAL Revenue 34,703 1,397 36,100 Other operating income 442 (e) 442 ——> EBITDA 8,876 530 9,405 Depreciation/amortisation - - -1,869 —> EBIT - - 7,537 Financial result - - -563 Share of loss from associates 53 — > ~EBT - - 6,921 Inco
Slide 24: Quarterly KPIs: pay-in, billings, ABPU, ARPU, MAU, CPL
Q2 Q3 Q4 Qi Q2 Q3 Qs Qi 2022 «2022, 2022) «2023'S 2023S 2023S 2023S 2024 Pay-in (in €m) 1101 138.0 120.6 140.8 121.4 128.4 1259 128.0 142.5 140.2 1477 1.3 158.8 167.3 1770 168.7 196.7 a Ga 140.0 17h 157.3 181.0 163.3 169.5 160.3 163.4 181.2 W771 1861 2141 201.2 2099 2221 2101 246.3 ABPU (in €) A9A6
Slide 25: Games KPIs: pay-in, billings, ABPU, ARPU, MAU
Pay-in (in €m) 01 43 51 63 BILLINGS (in €m) 0.6 16.2 249 SL ABPU Cin €) 58.74 306.14 4491 480.98 ARPU (in €) 5.49 22.02 32.89 33.57 MAU Cin k) 9 18 18 22 * Games business started in June 2023. @ Top) zeae ean
Slide 26: Financial Calendar 2024
FINANCIAL CALENDAR 2024 2024 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct Nov. Dec Jan. Feb. 2025 Mar. Apr. May Jun. Publication of Annual Report 2023 @ 20 March 2024 Publication of Q1 Quarterly Statement Annual General : : Meeting © 28 May 2p2h | Publication of Half-Year i ! Report ° FMS aint Pu
Slide 27: Contact
Contact ™ Frank Hoffmann, CEFA Senior Investor Relations Manager T +49 (0)40 809 036 - 042 M +49 (0)175 267 3420 frank.hoffmann@zealnetwork.de www.zealnetwork.de ZEAL Strafenbahnring 11 20251 Hamburg