Zeal Network Se · XETR:TIMA
Zeal Network — Q1 2023 Earnings Presentation
25 slides from Zeal Network's earnings presentation, May 11, 2023
Slide 1: Earnings Call Quarterly Statement Q1 2023
yA NE \ ~ EARNINGS CALL Quarterly Statement Q1 as of 31 March 2023 11 May 2023
Slide 2: Content
CONTENT - Summary - Financial Update - Guidance 2023 - Key Take-Aways ZE AL @ Tipp24 ZEAL) GT iis «ZEAL 108.2022
Slide 3: Summary
SUMMARY
Slide 4: Summary Q1 2023
SUMMARY Q1 2023 Games licence received 20 Good start with double-digit growth EBITDA continues to increase ZEAL is a member of the WLA Zz P F Dividend proposal of € 3.60 per share approved by the AGM @ Tipp24 ZEALGEZ) GMB aes = ZEAL 11.05.2023
Slide 5: Current Regulation - Licensing Procedure
CURRENT REGULATION - LICENSING PROCEDURE New GliStV 2021 No expiry date (can’t be terminated before 2028) 20 Opportunities: Games, Sports Betting Broker Licence Lotto24 broker permit valid until 30 June 2029 Games Licence @ Licence granted by the GGL on 05/04/2023 @> Licence valid until 31 March 202
Slide 6: Games Launch Expected in H1 2023
GAMES LAUNCH EXPECTED IN H1 2023 Rg Games license received Ramp-up now expected for H2 2023 - full business roll-out in 2024 ZEAL frontrunner in the lottery segment among peers with strong opportunity to capture early growth in new market segment x) Well-prepared launch and roll-out strategy Product
Slide 7: 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 Spain Portugal France UK 36% 4% w | 52% 47% 43% Source: La Fleur’s 2022 European Lottery Abstract, The European Lotteries, ONCE GAMES... Have great catch-u
Slide 8: Financial Update
FINANCIAL UPDATE
Slide 9: Jackpot Development - Peaks in 2023 vs. Peaks in 2022
JACKPOT DEVELOPMENT - 0 PEAKS IN 2023 VS. 2 PEAKS IN 2022 In€m LOTTO 6aus49 in€m Average Peak YTD 2022 21 2 1 3 5 7 9 nN B 15 7 19 2 2B 25 Draw In€m Eurojackpot in€m Average Peak 120 max. 100 “\ i 80 \ \ 42 0) é \ 7" 40 20 \ \ ae \ \ fl —S eV—7"y : YTD 2022-36 0) 1 3 5 7 9 uN B 5 7 19 21 2B 235 i Dr
Slide 10: ZEAL Income Statement Q1 2023 - Condensed
ZEAL INCOME STATEMENT Q11 2023 - CONDENSED INCOMESTATEMENT 212023 @12022 CHANGE ‘B REVENUE (in €k) (in €k) (in %) Revenue increased by 6% due to the higher activity/more volume. — > REVENUE 26,699 25,114 +63 20 TOTAL COSTS OF OPERATIONS “> ‘TOTAL COSTS OF OPERATIONS 17,579 16,452 +69 Total costs of
Slide 11: Other Performance Indicators I
OTHER PERFORMANCE INDICATORS | BILLINGS GROSS in € thousands 181.185 MARGIN (Germany Segment) in % Q12022 Q1 2023 Despite weaker jackpots compared to the previous year, billings increased 1 ZEALOENY GTi ZEAL -0.5% p.p. 290 12,4 Q12022 Q1 2023 Unfavourable product mix led to a decline in gross margin
Slide 12: Other Performance Indicators II
OTHER PERFORMANCE INDICATORS I 7% 0 NET CASH SS t003 NEW Be ag in € millions 779 REGISTERED CUSTOMERS (Germany Segment) in thousands 31/03/2022 31/03/2023 Q12022 Q12023 Despite a lack of jackpot peaks, we were able to significantly expand our customer base Net cash generation driven mainly by the VA
Slide 13: Other Performance Indicators III
OTHER PERFORMANCE INDICATORS III COST PER LEAD, CPL MONTHLY ACTIVE AVERAGE BILLINGS PER (Germany segment) USERS (MAU) USER, ABPU in€ ” (Germany segment) (Germany segment) in thousands in€ 5 +6% +5% -3% —-> —_— —, 1.036 1.100 58,31 60,99 ; ; a a Q12022 Q1 2023 Q12022 Q1 2023 Q12022 Q1 2023 Slight red
Slide 14: Guidance 2023
GUIDANCE 2023
Slide 15: Guidance 2023: Ramping Up for the Next Phase of Growth
GUIDANCE 2023: RAMPING UP FOR THE NEXT PHASE OF GROWTH 2023 In€m GUIDANCE 2022(e) ~_ ‘Gerneny segment)” 800 - 830 758.4 — > Revenue” 110 - 120 105.2 —> EBITDA” 30-35 31.7 ®. Guidance for FY 2023 based on a normalised jackpot situation 20 ZEAL will make the necessary investments for future growth & I
Slide 16: Key Take-Aways
KEY TAKE-AWAYS
Slide 17: Key Take-Aways
KEY TAKE-AWAYS ® ZEAL continues to grow 7 Games licence received @ Nosignificant business impact identified due to current changes in the geopolitical and economic environment & High cash return for shareholders DEINE LOTTERIE FUR MEHR LEBEN (34) Tipp24 fretheit* GTR SsEY ZEAL @ Tipp24 ZEALC@EZ) «GG
Slide 18: Question & Answer
Question Answer
Slide 19: 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 20: Appendix
APPENDIX
Slide 21: Consolidated Income Statement and Balance Sheet in €k
CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET IN €K Q12023 Q12022 CHANGE 31/03/23 31/12/22 CHANGE BALANCE SHEET ; ; in INCOMESTATEMENT in €k) (in €o (in %) cin€ Gin® in) Revenue 26,099 25114 +63 Current assets 144,042 139,538 432 Total costs of 7579 16,452 +69 operations Non-current assets 315,840
Slide 22: Business Unit Segment Reporting as of 31/03/23
BUSINESS UNIT SEGMENT REPORTING AS OF 31/03/23 IN €K GERMANY OTHER TOTAL Revenue 25,417 1,282 26,699 Other operating income 199 (e) 200 ——> EBITDA 9,069 252 9,320 Depreciation/amortisation - - 2/194 —> EBIT - - 7126 Financial result - - -293 Share of loss from associates 38 — > ~ ~EBT - - 6,795 Inco
Slide 23: Quarterly KPIs: Billings, ABPU, MAU, CPL
Q12022. §=Q22022 Q12021 Q22021 + Q32021 Q42021 Q3 2022 Q4 2022 Q12023 BILLINGS (in €m) 1861 2141 201.2 ABPU Cin €) 589 60.7 61.0 { MAU Cin k) 1,053 1175, 1,100 \ CPL Cin €) @ Tipp24 ZEALG@EZY GTB sey | ZEAL 34.76 34.86 36.77
Slide 24: Financial Calendar 2023
FINANCIAL CALENDAR 2023 2023 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. 2024 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Publication of Annual Report 2022 @ 23 March 2023 Annual General Meeting @ 9 May 2023 Publication of Q1 Quarterly Statement Publication of Half-Year Report Publication of Q3 Quar
Slide 25: 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 11.05.2023