ZEAL Network SE · XETR:TIMA
ZEAL Network — H1 2016 Earnings Presentation
17 slides from ZEAL Network's earnings presentation, Aug 12, 2016
Slide 1: ZEAL Network SE Investor Call
ZEAL Network SE Investor Call Half Year Report as of 30/06/16 London, 12 August 2016
Slide 2: Important Notice
Important Notice This Presentation has been produced by ZEAL Network SE (the "Company") and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the
Slide 3: Highlights H1 2016
Highlights H1 2016 €m Statutory H1 2016 H1 2015 Change % Total operating performance 61.4 65.5 (6) EBIT 10.3 18.5 (45) • Total operating performance of €61.4m only €4m down versus last year despite the high prize pay-out in May • EBIT of €10.3m also impacted by the high prize pay-out in addition to
Slide 4: Business Unit Update
Business Unit Update B2C: • Despite the distraction of EURO 2016 – normalised revenue grew year on year • Roll out of four new instant win games in 2016. In total 14 games are live on Tipp24.com • Increasing the high average levels of spend from our customer base • Starting a multimedia advertising
Slide 5: Other topics
Other topics Hedging as a Service • MyLotto24 has signed its first Hedging Service agreement for the provision of third- party Jackpot risk coverage German VAT: • No change in situation, no new information since Annual Report 2015 Brexit: • The future relationship between UK and EU remains unclear b
Slide 6: Total Operating Performance
Development of Revenue TOP in million € ‘Normalised’ Comments +109% +49% 68,0 69,5 • ‘Normalised’ Revenue increased by 2% thanks to the Revenue successful rollout of instant win games offset by: 35,9 36,5 36,7 37,1 35,6 37,6 33,9 38,3 – The distraction of the Euro 2016 Championship 1 26,2 25,7 – Low
Slide 7: Total costs of operations
Development of Expenses in million € Comments Personnel cost: • Broadly in line with previous year with minor increase due to increased headcount and inflation based salary increases Total costs of operations1 +7% +9% (47,0) (51,2) Other Operating Expenses: (26,9) • €2.5m increase in irrecoverable V
Slide 8: Net profit
Development of EBIT and Net Profit in million € ‘Normalised’ Comments (191%) (45%) 22,21 22,7 • EBIT impacted by several uncontrollable and non- 21,4 18,5 recurring cost items EBIT 14,2 11,2 12,5 11,9 12,2 9,1 10,3 2 4,4 2 2,2 ≠ (4,0) 2 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 H1 2015 H1 2016 1) Impa
Slide 9: Net cash
Development of net cash1 in million € Comments +29% Net Cash was impacted in the first 6 moths by: • €12m dividend payments in H1 2016 43,5 45,4 • €17m from high pay-out in the 2nd Quarter 40,0 33,2 31,0 • Refund of €10m from the Spanish Tax Authority in 1st Quarter Net cash 30/06/15 30/09/15 31/12/
Slide 10: Dividend Policy
Dividend Policy Total Dividend of € 2.80 per year Quarterly Interim Dividends End of End of €0.70 €0.70 Sep. Dec. 31/03/16 30/06/16 expected expected August 2016, Earnings Call Half Year Report as of 30/06/16 10
Slide 11: Guidance 2016
Guidance 2016 Guidance 2016 in € million Total Operating € 125 - 135m Performance EBIT € 25 - 35m Dividend € 2.80 per share • Guidance based on recent high prize pay-out • Solid underlying business performance August 2016, Earnings Call Half Year Report as of 30/06/16 11
Slide 12: Financial calendar
Financial calendar Publication of Q1 Report 13 May 2016 Annual General Meeting 22 June 2016 Publication of Q2 Report 12 August 2016 Publication of Q3 Report 11 November 2016 August 2016, Earnings Call Half Year Report as of 30/06/16 12
Slide 13: Appendix
Appendix
Slide 14: Consolidated Income Statement and Balance Sheet
Consolidated Income Statement and Balance Sheet in €k 30/06/16 30/06/15 Change in % Income Statement Revenue 38,330 25,698 +49.2 Total operating performance 61,444 65,542 (6.3) Other operating expenses (33,613) (31,710) +6.0 EBITDA 11,640 22,079 (47.3) EBIT 10,264 18,520 (44.6) Earnings before taxes
Slide 15: Business unit segment reporting as of 30/06/16
Business unit segment reporting as of 30/06/16 in €k Reconcili- - thereof Business - thereof B2C B2B/B2G ation to normalisation Statutory unit total adjustments other stats [A] [B] [A]+[B]=[C] [D]+[E]=[F] [D] [E] [C]+[F] Revenue 66,234 3,125 69,359 (31,029) (31,143) 114 38,330 Other operating income
Slide 16: Statutory / Normalised Revenue & EBIT
Statutory / Normalised Revenue & EBIT in €k H1 2016 H1 2015 Variance Revenue Statutory 38,330 25,698 12,632 Normalised 69,473 67,989 1,484 Variance (31,143) (42,291) H1 2016 H1 2015 Variance EBIT Statutory 10,264 18,520 (8,256) Normalised 21,377 22,712 (1,335) Variance (11,113) (4,192) August 2016,
Slide 17: Frank Hoffmann, Investor Relations Manager
Frank Hoffmann Investor Relations Manager ZEAL 5th Floor - One New Change London EC4M 9AF T +44 (0) 203 739 7123 M +49 (0) 175 2673420 F +44 (0) 203 739 7099 frank.hoffmann@zeal-network.co.uk www.zeal-network.co.uk