Slide 1: ZEAL Network SE Investor Call – Quarterly Statement 31 March 2020
ZEAL Network SE Investor Call Quarterly Statement as of 31 March 2020 14 May 2020 QUARTERLY STATEMENT 1 January – 31 March 2020 1
Slide 2: Content
Content 1. Summary 3M 2020 2. Financial Update 3. Guidance 2020 4. Key Take-Aways
Slide 3: We are on a good way to reach our goals
We are on a good way to reach our goals, even if some steps of the transition, such as the complete technical integration of Lotto24 AG, are still pending. Jonas Mattsson, CFO, ZEAL
Slide 4: Summary
Summary
Slide 5: Summary 3M 2020
Summary 3M ➢ Promising start into the business year 2020 - Significant increase in billings - Improved gross margin - High number of new registered customers 2020 - Launch of new social lottery - freiheit+ - Majority of cost savings realised ➢ Reporting segments reorganised ➢ Guidance and dividend p
Slide 6: Financial Update
Financial Update
Slide 7: Income Statement 3M 2020
ZEAL Income Statement 3M 2020 in € million 3M 2020 3M 2019 Change in % Comments ➢ Revenue: Revenue 19,024 36,462 (47.8) − As an effect of the Business Model Change and the corresponding revenue dis-synergies this is reduced Personnel expenses (4,954) (5,508) (10.1) ➢ Personnel expenses & other opera
Slide 8: Other performance indicators I
Other performance indicators I Gross Margin Billings in €k in % (Germany Segment) 140.049 +108% 12,1 1) +6% 11,4 67.369 1) 3M 2019 3M 2020 3M 2019 3M 2020 1) Just for comparison: Gross margin of Lotto24 AG for Q1 8
Slide 9: Other performance indicators II
Other performance indicators II New registered customers Net Cash (Germany segment) 206 in €m in k 100,4 (35%) 1) 65,1 2) 86 70,3 22,8 1) 31/3/2019 31/3/2020 3M 2019 3M 2020 Net Cash Contingent Liability for VAT 1) In January 2020, myLotto24 Limited made an interim VAT payment of €54 million to the
Slide 10: Other performance indicators III
Other performance indicators III Cost per Lead (CPL) Monthly Active Users (MAU)1) Average Billings per User (ABPU)2) in k 942 in € in € 57,47 49,46 3) 389 27,10 26,00 3M 2019 3M 2020 3M 2019 3M 2020 3M 2019 3M 2020 1) MAU (monthly average active users us the number of unique users who have either pu
Slide 11: Guidance 2020
Guidance 2020
Slide 12: Consolidated Guidance 2020 - reiterated
Consolidated Guidance 2020 - reiterated Comparative figures for 2019 are difficult to compare with those forecast for 2020 due to the Lotto24 takeover in May 2019 and the business model change from a secondary lottery to an online lottery broker in Germany in October 2019. 2019 1) in €m 2020 Guidanc
Slide 13: Dividend Policy reiterated
Dividend Policy reiterated • Based on the continuing positive liquidity situation of the ZEAL Group in 2019 and the expected increasing profitability • Proposal of a total amount of pay-out of €17.6 million (2018: €8.4 million) to the Annual General Meeting on 17 June 2020 • Corresponds to a dividen
Slide 14: Key Take-Aways
Key Take-Aways
Slide 15: ZEAL: Key take-aways
ZEAL: Key take-aways Great start to the year with no negative impact from Covid-19 Strong customer acquisition builds foundation for growth Clear focus on costs, cost synergies well on track Reporting segments reorganised 15
Slide 16: Questions Answers
Questions Answers
Slide 17: Disclaimer
Disclaimer This presentation has been jointly prepared by ZEAL Network SE and Lotto24 (together the "Companies") solely in connection with the analyst and investor call on 14 May 2020. The information contained herein must not be relied upon for any purpose and may not be redistributed, reproduced,
Slide 18: Appendix
Appendix
Slide 19: ZEAL: Consolidated Income Statement and Balance Sheet
ZEAL: Consolidated Income Statement and Balance Sheet in €k 31/03/20 31/03/19 Change in % Income Statement Revenue 19,024 36,462 (47.8) Total costs of operations (16,192) (24,261) (33.3) Adjusted EBITDA 2,8321) 10,4091) (73.8) EBIT 42 9,776 (99.6) Earnings before taxes (188) 9,837 (101.9) Profit 152
Slide 20: ZEAL: Business Unit Segment Reporting
ZEAL: Business Unit Segment Reporting as of 31/03/20 in €k Germany Other Total Revenue 16,969 2,055 19,024 Other operating income 414 – 414 Adjusted EBITDA 1,9011) 931 2,832 Depreciation/amortisation – – (2,682) EBIT – – 42 Financial result – – (169) EBT – – (188) Income tax – – 340 Net Profit/loss
Slide 21: ZEAL: KPIs
ZEAL: KPIs Secondary lottery business Broker Business Billings Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (in €m) 2018 2018 2018 2018 2019 2019 2019 2019 2020 68.3 65.5 67.8 77.7 67.4 112.0 153.3 134.0 140.0 ABPU Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (in €) 2018 2018 2018 2018 2019 2019 2019 2019 2020 58.0 53.3 58.0 60.4 57.5
Slide 22: Financial Calendar 2020
Financial Calendar 2020 Publication of Annual Report 2019 26 March 2020 Publication of Q1 Report 14 May 2020 Annual General Meeting 19 June 2020 Half-Yearly Financial Report 13 August 2020 Publication of Q3 Report 12 November 2020 22
Slide 23: Investor Relations contacts
Vanina Hoffmann, CEFA Frank Hoffmann, CEFA Manager Investor & Public Relations Investor Relations Manager Lotto24 ZEAL Straßenbahnring 11 Straßenbahnring 11 20251 Hamburg 20251 Hamburg T +49 (0)40 8222 39 - 501 T +49 (0)40 808 141 - 123 F +49 (0)40 8222 39 - 70 M +49 (0)175 267 3420 vanina.hoffmann@