Zeal Network Se · XETR:TIMA
Zeal Network — H1 2024 Earnings Presentation
28 slides from Zeal Network's earnings presentation, Aug 7, 2024
Slide 1: Earnings Call Half-Year Report H1 2024
yA NE \ ~ EARNINGS CALL Half-Year Report H1 as of 30 June 2024 07 August 2024 @® Tpp24 ZEAL GED) Gases ZEAL Troumhaus
Slide 2: Content
CONTENT CONTENT CONTENT CONTENT © CONTENT ZEAL Tipp2a ZEAL Traumhaus
Slide 3: Summary
SUMMARY
Slide 4: Strong revenue growth of 40% yoy; new charity lottery launch
Strong revenue growth of 40% yoy Launch of new charity lottery in August 2024
Slide 5: Financial Update
FINANCIAL UPDATE
Slide 6: Very good jackpot environment - peaks in H1 2024
VERY GOOD JACKPOT ENVIRONMENT - 6 PEAKS IN H1 2024 VS. 3 PEAKS IN H1 2023 In€m LOTTO 6aus49 in€m Average Peak max. (new) a EEE (old) ; 40 H 20 10 H1 ‘23 4 1 135791 BH 7 9 2 2 2 7 29 3 33 35 37 39 A 43 45 47 49 51 Draw In€m Eurojackpot in€m Average Peak no otk. x toe. max. 100 80 & 6 60 4 40 AF 20 :
Slide 7: ZEAL income statement H1 '24 - condensed
ZEAL INCOME STATEMENT H1 ‘24 - CONDENSED @ REVENUE INCOME STATEMENT H1‘24 H1‘23 CHANGE Revenue increased by 40% due to a strong increase in MAU, ABPU and gross (in €k) (in €k) (in %) margin COST OF OPERATIONS — > REVENUE 76,765 54,829 +40.0 ~ Personnel expenses: - Lotteries 68,011 51,218 432.8 Perso
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 offline (TV, billboards) advertising campaign for LOTTO24 to increase brand awareness * Brand campaign is already leadin
Slide 9: Lottery billings with further jump driven by growth in user base
LOTTERY BILLINGS WITH FURTHER JUMP DRIVEN BY GROWTH IN USER BASE AND HIGHER BILLINGS PER USER MONTHLY ACTIVE AVERAGE BILLINGS PER BILLINGS USERS (MAU) USER, ABPU CLotteries) (Lotteries) (Lotteries) in thousands in€ Ca3x%)} so7a ) Cone), 14353 +2% — 61.21 62.48 4124 a a 4AN7 H1'23 H1'24 H1'23 H1'24 S
Slide 10: Gross margin increased substantially
GROSS MARGIN INCREASED SUBSTANTIALLY GROSS MARGIN NEW REGISTERED COST PER LEAD, CPL (lotteries) CUSTOMERS (lotteries) (Lotteries) in thousands +70% 592 +1.1 pp. 1 9 D 45.09 -26% m5 _ 86 —_ 349 33.20 H1'23 H1'24 H1'23 H1'24 H1'23 H1'24 eros Ss margin increased cuefo Marsan Strong jackpot situation co
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 Our Progress in H1 2024 Improve billings margin in lottery brokerage business Increase brand awareness, marketing efficiency, customer retention Grow Games business Launch new charity lottery Optimization of billings ma
Slide 13: Higher lottery billings margin driven by improved product mix
HIGHER LOTTERY BILLINGS MARGIN DRIVEN BY IMPROVED PRODUCT MIX AND ROLL-OUT OF PRICE OPTIMIZATION AS EXPECTED BILLINGS MARGIN: BILLINGS MARGIN: H1’23 VS. H1 ‘24 Q2 ’23 VS. Q2 ‘24 (Lotteries) (Lotteries) in % in % 08% 0.2% We ce OM a = =—6h ms 25% Om 13.6% 13.9% H1'23 Product Mix Price H1'24 (1) Big W
Slide 14: Traumhauslotterie chart
450,000 400,000 • 350,000 300,000 • Q2 ‘24 250,000 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: Check out: www.traumhausverlosung.de
• • • • • • 👉🏻Check out: www.traumhausverlosung.de
Slide 16: Games business continues to show revenue growth and attractive metrics
GAMES BUSINESS CONTINUES TO SHOW REVENUE GROWTH AND ATTRACTIVE METRICS BILLINGS ABPU in € millions 24.9 16.2 06 i g Continuous expansion of games portfolio We received regulatory approval to publish further 13 in€ 5355 64 games - currently 115 Games are online, and we - 29.9 : are waiting for regula
Slide 17: Guidance 2024 reiterated
GUIDANCE 2024 REITERATED 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 on an average jackpot environ
Slide 18: Key Take-aways
KEY TAKE-AWAYS
Slide 19: Strong revenue growth of 40% yoy; new charity lottery launch
Strong revenue growth of 40% yoy Launch of new charity lottery in August 2024
Slide 20: Question / Answer
Question Answer
Slide 21: 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 22: Appendix
APPENDIX
Slide 23: Consolidated income statement and balance sheet in €k
CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET IN €K INCOME STATEMENT a a a 3 CHANGE BALANCE SHEET ane oO. neo ene Revenue 76,765 54,829 +40.0 Current assets 90,986 92,637 18 socrations f “$7045 “41921 +304 Non-current assets 298,329 302,016 1.2 EBITDA 20095 18,765 +400 —> ASSETS 389,315 394,653 a
Slide 24: Business unit segment reporting as of 30/06/24
BUSINESS UNIT SEGMENT REPORTING AS OF 30/06/24 IN €K GERMANY OTHER TOTAL Revenue 73,997 2,768 76,765 Other operating income 373 (e) 373 —— > EBITDA 19,031 1,062 20,093 Depreciation/amortisation - - 3,944 —> EBIT - - 16,149 Financial result - - -1,208 Share of loss from associates -85 — > ~EBT - - 14
Slide 25: Quarterly KPIs: pay-in, billings, ABPU, ARPU, MAU, CPL
Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 2022 «2022, 2022. 2023'S 2023. 2023. 2023'S 2024 «= - 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 168.7 196.7 214 BIINGSGin 140.0 174.4 157.3 181.0 163.3 169.5 160.3 163.4 181.2 W771 1861 2141 201.2 2099 2221 2101
Slide 26: Games business KPIs
Pay-in (in €m) 01 Sas) 51 63 63 BILLINGS (in €m) 0.6 16.2 249 SL 299 ABPU Cin €) 58.74 306.14 44911 480.98 535.52 ARPU (in €) 5.49 22.02 32.89 33.57 41.21 MAU Cin k) 9 18 18 22 19 * Games business started in June 2023. @ Trp! ZEALGED) Gass ZEAL Traumhaus
Slide 27: 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 i i ; Report 2023 | o 20 March 2024 Publication of Q1 : Quarterly Statement @ sMay 2024 : Annual General Meeting ¢ 2B) a : Publication of Half-Year Report P
Slide 28: 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