Zeal Network Se · XETR:TIMA
Zeal Network — Q4 2022 Earnings Presentation
20 slides from Zeal Network's earnings presentation, Feb 28, 2023
Slide 1: Preliminary Annual Results 2022, Business Outlook, Guidance and Dividend 2023
ZEAL 28.02.2023 PRELIMINARY ANNUAL RESULTS 2022 + BUSINESS OUTLOOK 2023 + GUIDANCE 2023 + DIVIDEND 2023
Slide 2: Summary: ZEAL delivered on goals in FY 2022
SUMMARY: ZEAL DELIVERED ON GOALS IN FY 2022 * Ambitious growth objectives achieved . aw in a challenging environment * Online market share expanded to around 41% ¢ VAT case won, resulting in a high special dividend * Continued business growth expected ° Broker licence extended until 2029 ° Tight cos
Slide 3: Jackpot development - 7 peaks in 2022 vs. 3 peaks in 2021
JACKPOT DEVELOPMENT - 7 PEAKS IN 2022 VS. 3 PEAKS IN 2021 In€m LOTTO 6aus49 50 tok 202 2021 40 1 °5 9 13 7 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 101 105 Draw jinem | NEES | rea | In€m Eurojackpot * —2022 2021 1 5 9 3 7 2 2 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 Draw ®
Slide 4: Preliminary results FY 2022: ambitious guidance achieved
PRELIMINARY RESULTS FY 2022: AMBITIOUS GUIDANCE ACHIEVED BILLINGS REVENUE* EBITDA in € million in € million in € million 656.5 86.8 27.7 FY 2021 FY 2022(e) FY 2021 FY 2022(e) FY 2021 FY 2022(e) Increase in profitability despite 16% Increase, in part thanks to Stronger margin product mix leads to bet
Slide 5: Preliminary results FY 2022: continued customer growth
PRELIMINARY RESULTS FY 2022: CONTINUED CUSTOMER GROWTH GROSS MARGIN NEW REGISTERED (GERMANY SEGMENT) CUSTOMERS in % in thousand 07 00 ME 544 12.2 FY 2021 FY 2022(e) FY 2021 FY 2022(e) ® Tipp24 ZEAL GD) GawB ase ZEAL
Slide 6: Preliminary condensed income statement FY 2022
PRELIMINARY CONDENSED INCOME STATEMENT FY 2022 FY 2022(e) FY 2021 REVENUE + REVENUE: Income from jackpot insurance 105.2 86.8 +212 Revenue and Income from jackpot insurance increased by 21% due to favourable product mix in combination with increased transaction volume TOTAL COSTS OF OPERATIONS -759
Slide 7: Highly efficient marketing expanded market share significantly in 2022
DUE TO HIGHLY EFFICIENT MARKETING ACTIVITIES, MARKET SHARE EXPANDED SIGNIFICANTLY IN 2022 2013 2021 2022 @ 16 federal 12% 16 federal state lotteries AI state lotteries Son? 17 billion = €19 billion = 4% online penetration 21% online penetration? 23% online penetration” ? According to information of
Slide 8: Business Outlook 2023
BUSINESS OUTLOOK 2023
Slide 9: Sticky & robust business model unaffected by unfavourable macro outlook
STICKY & ROBUST BUSINESS MODEL UNAFFECTED BY UNFAVOURABLE MACRO OUTLOOK Macro Outlook for 2023 * Recession in Germany expected in 2023* ZEAL expects further profitable growth in the * Inflation- and interest-rates to remain ona coming years based on high level* = Low correlation with consumer confid
Slide 10: Scalable attractive business model with exciting opportunities for further growth
SCALABLE ATTRACTIVE BUSINESS MODEL WITH EXCITING OPPORTUNITIES FOR FURTHER GROWTH, BOTH IN CORE AND WITH NEW BUSINESSES Long-term broker permit extended (2029) Market leader among online lottery in Germany with superior economies of scale and with a national offer Unique, scalable, strong cash-gener
Slide 11: Increased marketing activities planned: accelerate growth and capture market share
INCREASED MARKETING ACTIVITIES PLANNED: ACCELERATE GROWTH AND CAPTURE FURTHER MARKET SHARE * ZEAL plans to maintain high growth rates and to gain further market share as lottery players continues to move online * Growth is highly marketing-driven, therefore developing and expanding additional market
Slide 12: New products as key growth accelerators
NEW PRODUCTS AS KEY GROWTH ACCELERATORS Games ¢ Proven business model between 2015- ° 2018 with high growth rates ¢ Instant win games already very popular ° outside of Germany Strong gross margin between 20-25% ° Tech is launch ready Profitable on day 1 Charity lotteries Charity lottery segment succ
Slide 13: Games launch expected in H1 2023
GAMES LAUNCH EXPECTED IN H1 2023 * Games license pending with positive signs of short-term approval — Originally expected for mid-2022 but delayed due to political discussions in ‘Glucksspielkollegium‘ — Major ramp-up now expected for H2 2023 - full business roll-out in 2024 — ZEAL frontrunner in th
Slide 14: Instant win games are already very popular in other markets
INSTANT WIN GAMES ARE ALREADY VERY POPULAR IN OTHER MARKETS Instant win Games: % of total lottery billings (2020/21) in different markets Europe 36% Spain 4% w | Portugal 52% France 47% UK 43% Source: La Fleur’s 2022 European Lottery Abstract , The European Lotteries, ONCE Games... * Have great catc
Slide 15: Guidance 2023
GUIDANCE 2023
Slide 16: Guidance 2023: ramping up for the next phase of growth
GUIDANCE 2023: RAMPING UP FOR THE NEXT PHASE OF GROWTH * Guidance for FY 2023 based ona normalised jackpot situation 2023 2022(e) GUIDANCE ¢ ZEAL will make the necessary investments Billi ; ang gegmenty? | 200-830 7584 for future growth ¢ Increase of marketing expenses in FY 2023 in the range of €34
Slide 17: Dividend Proposal 2023
DIVIDEND PROPOSAL 2023
Slide 18: Dividend
DIVIDEND Based on the continuing positive liquidity TOTAL PAY-OUT P.A. situation in 2022 and the expected increase in in € million future profitability, combined with the aim to Base Dividend Special Dividend further optimising the capital structure, we intend to return another large portion of cash
Slide 19: Five reasons to invest in ZEAL
FIVE REASONS TO INVEST IN ZEAL ° No. 1in online lotteries in Germany ° Unique, cash generating business model * Outstanding customer loyalty ¢ High growth opportunities in an underpenetrated market ° Attractive dividend proposal 27.02.2023
Slide 20: Answers
Answers ™]