Slide 1: Earnings Call Annual Report 2021
Earnings Call Annual Report 2021 24 March 2022 ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 1
Slide 2: Content
Content SUMMARY BUSINESS UPDATE ESG FINANCIAL UPDATE GUIDANCE KEY TAKE-AWAYS ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 2
Slide 3: Summary 12M 2021
Summary 12M 2021 ➢ Stable business despite a weak jackpot situation 12M • Strong improvement in profitability ➢ Successful stock market withdrawal of LOTTO24 AG ➢ The largest price ever paid out by ZEAL – €49m for a winner in Bavaria 2021 ➢ Investing in future growth • Launched second charity lotter
Slide 4: Ambition: Define the Future of Lottery
Ambition DEFINE THE FUTURE OF LOTTERY ZEAL is a lottery technology company. We combine user insights, lottery expertise and eCommerce excellence to define the future of lottery. ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 4
Slide 5: Purpose: We let people dream
Purpose WE LET PEOPLE DREAM. WE CONTRIBUTE TO SOCIETY. With our work we let people dream big. And with every lottery-ticket sold we contribute to society. Either directly by supporting social causes through social lotteries or indirectly through state lotteries. ZEAL NETWORK SE EARNINGS CALL | MARCH
Slide 6: Business Update
Business Update ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 6
Slide 7: Second charity lottery successfully launched
Second charity lottery successfully launched Deutsche Traumhauslotterie freiheit+ • Draw every week on Thursday at 6:00 p.m. • Draw every week on Monday at 6:00 p.m. • € 1 per ticket for a good cause • 30% per ticket for a good cause • Winning probability 1 : 4 million • Winning probability 1 : 7 mi
Slide 8: Partnership with Lotto Hessen
Partnership with Lotto Hessen • Lotto Hessen is selling games provided by ZEAL to their online customers • Lotto Hessen got the approval for these games by the hessian gambling authority to be operated as ‘instant lotteries’ (‘Sofortlotterien’) • Revenue Share based Games-as-a-Service Deal (tiered s
Slide 9: Market leadership
Market leadership1) 2013 2020 2021 16 federal 16 federal state lotteries state lotteries 12% 41% 39% 16 federal state lotteries €253 million = €1,587 million = €1,663 million = 4% online penetration 2) 20% online penetration 2) 21% online penetration 2) 1) According to information of the German Asso
Slide 10: Current regulation - Licensing procedure
Current regulation - Licensing procedure New GlüStV 2021 • No expiry date (can’t be terminated before 2028) • Opportunities: Games, Sports Betting Games License • All documents submitted • All requirements fulfilled • Licence expected in Q2/2022 Broker License • Lotto24 broker permit valid until Jun
Slide 11: ESG
ESG ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 11
Slide 12: Sustainability at ZEAL
Sustainability at ZEAL Corporate strategy at a glance Safe gaming experience Sustainable growth Even though our products are of limited Safe & We ensure our long-term growth by attractive risk, we have the highest demands with gaming investing in our people, innovative regards to preventing addictio
Slide 13: Our customers win
Our customers win High social acceptance: Number lotteries are by far the most popular form of gambling in Germany: more than ten million Germans play them every week. Low risk: According to the results of various studies, this type of gambling and other classic lotteries only pose a low risk of add
Slide 14: Our environment wins
Our environment wins We contribute to climate and environmental protection. Our main fields of action are: Energy consumption Waste IT hardware ZEAL more than halved its We reduced our packaging ZEAL focuses on durability electricity consumption over waste and energy efficiency when the past three y
Slide 15: Financial Update
Financial Update ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 15
Slide 16: Jackpot development - only 3 peaks in 2021 vs. 11 in 2020
Jackpot development - only 3 peaks in 2021 vs. 11 in 2020 in €m LOTTO 6aus49 50 in €m Average Peak 40 30 YTD 10.8 0 20 2021 10 YTD 13.4 5 Draw 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 2020 2021 2020 * Since 23 September 2020, the amount
Slide 17: Income Statement 12M 2021 - condensed
ZEAL Income Statement 12M 2021 - condensed in € thousand 12M 2021 12M 2020 Change in % Comments Revenue + ➢ Revenue: 86,784 87,023 -0.3 • Revenue and Income from jackpot insurance was at the previous Income from jackpot insurance year's level Personnel expenses -19,048 -21,870 -12.9 ➢ Total costs of
Slide 18: Other performance indicators I
Other performance indicators I Gross Margin Billings (Germany Segment) in € thousand in % 652.756 +1% 656.474 12,3 -0.1% p.p. 12,2 FY 2020 FY 2021 FY 2020 FY 2021 Despite weak jackpots, Gross margin maintained at last years level billings maintained at last year's level despite lower sales of premiu
Slide 19: Other performance indicators II
Other performance indicators II New registered customers Net Cash (Germany segment) in €m in thousand 918 +11% 544 72,0 64,8 22,3 23,3 31/12/2020 31/12/2021 FY 2020 FY 2021 Net Cash Contingent Liability for VAT Strong net cash generation mainly driven by More than 500k customers acquired operating p
Slide 20: Other performance indicators III
Other performance indicators III Cost per Lead, CPL Monthly Active Users (MAU) Average Billings per User, ABPU (Germany Segment) (Germany Segment) (Germany Segment) in € in thousand in € 986 964 27,79 27,94 55,07 56,77 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 Stable CPL development despite We
Slide 21: Dividend 2022
Dividend 2022 ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 21
Slide 22: Dividend Proposal
Dividend Proposal ZEAL will propose to the Annual General Meeting on 30 Total pay-out p.a. in € million 47 June 2022 the payment of a dividend of € 2.10 (2020: € 0.90 per share), which means a distribution to the shareholders of approximately € 47 million. This will consist of a basic dividend of €
Slide 23: Guidance 2022
Guidance 2022 ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 23
Slide 24: Consolidated Guidance 2022
Consolidated Guidance 2022 2022 2021 in €m Growth rates Guidance Actual Billings (Germany segment) at least 750 656.5 > +14% Revenue at least 105 86.5 > +21% > +8% EBITDA at least 30 27.7 > +60%1) 1) Adjusted for one-off effects and marketing savings in 2021 In our fiscal year 2022, we plan to maint
Slide 25: Key Take-Aways
Key Take-Aways ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 25
Slide 26: Key Take Aways
KEY TAKE AWAYS Profitability significantly increased Repayment of €47m to shareholders Successful stock market withdrawal of LOTTO24 AG We adapt our marketing measures to the respective market situation Investing in future growth ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 26
Slide 27: Questions Answers
Questions Answers ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 27
Slide 28: 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 busin
Slide 29: Appendix
Appendix ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 29
Slide 30: Consolidated Income Statement and Balance Sheet
Consolidated Income Statement and Balance Sheet in €k 12M 2021 12M 2020 Change in % Income Statement Revenue + 86,784 87,023 -0.3 Income from jackpot insurance Total costs of operations -60,210 -77,912 -22.7 Adjusted EBITDA1) 27,734 12,744 +117.6 EBIT 19,045 5,375 +254.3 Profit before taxes 16,654 7
Slide 31: Business Unit Segment Reporting as of 31/12/21
Business Unit Segment Reporting as of 31/12/21 in €k Germany Other Total Revenue 78,473 4,862 83,334 Other operating income 4,596 14 4,610 EBITDA 26,493 1,242 27,734 Depreciation/amortisation – – -8,689 EBIT – – 19,045 Financial result – – -2,091 Share of loss from associates -300 EBT – – 16,654 Inc
Slide 32: KPIs
KPIs Billings (in €m) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 134.5 140.0 174.4 157.3 181.0 163.3 169.5 160.4 163.3 ABPU (in €) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 48.4 49.5 54.5 54.9 61.3 56.3 58.3 54.4 58.0 MAU (in k) Q4 2019 Q1 2
Slide 33: Financial calendar 2022
Financial calendar 2022 Publication of Annual Report 2021 24 March 2022 Publication of Q1 Quarterly Statement 12 May 2022 Annual General Meeting 30 June 2022 Publication of Half-Year Report 11 August 2022 Publication of Q3 Quarterly Statement 10 November 2022 ZEAL NETWORK SE EARNINGS CALL | MARCH 20
Slide 34: Contact
Contact: Frank Hoffmann, CEFA Senior Investor Relations Manager ZEAL Straßenbahnring 11 20251 Hamburg T +49 (0)40 809 036 - 042 M +49 (0)175 267 3420 frank.hoffmann@zealnetwork.de www.zealnetwork.de ZEAL NETWORK SE EARNINGS CALL | MARCH 2022 34