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Zeal Network — Q3 2023 Earnings Presentation
25 slides from Zeal Network's earnings presentation, Nov 9, 2023
Slide 1: Earnings Call Quarterly Statement Q3 2023
yA NE \ ~ EARNINGS CALL Quarterly Statement Q3 as of 30 September 2023 09 November 2023 @® Tpp24 ZEAL GED) Gawysse ZEAL
Slide 2: Content
CONTENT - Summary - Business Update - Financial Update CONTENT - Guidance 2023 CONTE NT - Key Take-Aways ZEAL @ Tipp24 ZEAL@E) Gab sig 9 ZEAL 90.2023
Slide 3: Summary
SUMMARY
Slide 4: Increased profitability despite expanded investment into customer acquisition and brand building
Increased profitability despite expanded investment into customer acquisition and brand building
Slide 5: Business Update
BUSINESS UPDATE
Slide 6: Games Business on Track
GAMES BUSINESS ON TRACK Rg Games business successfully launched New Games offer is very well received — full business roll-out in 2024 ZEAL still frontrunner in the lottery segment among peers with strong opportunity to capture early growth in new market segment <3 Continuous expansion and refreshin
Slide 7: Financial Update
FINANCIAL UPDATE
Slide 8: Jackpot Development - Peaks in 2023 vs. Peaks in 2022
JACKPOT DEVELOPMENT - 5 PEAKS IN 2023 VS. 5 PEAKS IN 2022 In€m LOTTO 6aus49 in€m Average Peak 15) 3 15 4 1 4 7 10 3 16 19 22 25 28 31 34 37 40 43 46 49 52 55 5B 61 64 67 70 73 76 Draw Iném Eurojackpot ra * in€m Average Peak 120 max. 2 "0 / Nf YA oH 3 SLM /\ 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43
Slide 9: ZEAL Income Statement 9M 2023 - Condensed
ZEAL INCOME STATEMENT 9M 2023 - CONDENSED INCOME STATEMENT Seo (| Gren ‘BR REVENUE Revenue increased by 16% due to the strong growth of billings. — > REVENUE 86,012 74,451 415.5 20 TOTAL COSTS OF OPERATIONS Total costs of operations increased by 17% compared to previous year. -Lotteries 79,418 69,42
Slide 10: New Financial KPIs and Other Indicators
NEW FINANCIAL KPI’S AND OTHER INDICATORS LOTTERIES GAMES COMMENTS 9M 2023 9M 2022 CHANGE 9M 2023 9M 2022 CHANGE Billings: Pay-in (€m.) 5031 4304 +16.9% - - Key figure Billings is not representative for the Games business. px ox NEW KPI's Billings €m.) 633.2 5444 416.3% 167 - - With the new Games bus
Slide 11: Other Performance Indicators (Lotteries)
OTHER PERFORMANCE INDICATORS | (LOTTERIES) BILLINGS MONTHLY ACTIVE AVERAGE BILLINGS PER (Lotteries) USERS (MAU) USER, ABPU in € millions (Lotteries) (Lotteries) in thousands in€ +16% ie ee nd 633.2 544.4 1,034 &- 58.47 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 = shul use of the high SLs cusese
Slide 12: Other Performance Indicators II (Lotteries)
OTHER PERFORMANCE INDICATORS II (LOTTERIES) GROSS MARGIN NEW REGISTERED COST PER LEAD, CPL (Lotteries) CUSTOMERS (Lotteries) in % in € (Lotteries) in thousands +3% —— > 518 +299 -0.3 pp. 501 _ 46.81 vs. ns a 7 36.42 &g 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 Due to the product mix gross Expa
Slide 13: Guidance 2023
GUIDANCE 2023
Slide 14: Guidance 2023 - Confirmed
GUIDANCE 2023 - CONFIRMED 2023 In €m GUIDANCE 2022 Billings _ (excl. Games)” 800 - 830 758.4 ~~» Revenue” N10 - 120 105.2 —> EBITDA” 30-35 31.7 Guidance for FY 2023 based on a normalised jackpot situation ZEAL will make the necessary investments for future growth Marketing expenses in the range of €
Slide 15: Key Take-Aways
KEY TAKE-AWAYS
Slide 16: Key Take-Aways
KEY TAKE-AWAYS ® ZEAL continues to grow »0 Games business launched successfully in June Customer acquisition accelerated, especially during high jackpots @ Expansion of investment into brand building DEINE LOTTERIE FUR MEHR LEBEN (34) Tipp24 fretheit* GTR SsEY ZEAL @® Trt ZEALGE) GBs ZEAL 9m2025
Slide 17: Question / Answer
Question Answer
Slide 18: 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 19: Appendix
APPENDIX
Slide 20: Consolidated Income Statement and Balance Sheet in €k
CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET IN €K 9M 2023 9M 2022 CHANGE 30/09/23 31/12/22 CHANGE BALANCE SHEET a a in INCOMESTATEMENT | (ine) (in€ Cin %) Gin© Gn Gin %) Revenue 80012 THAs\ +155 Current assets 81,430 139,538 416 Total costs of ~63926 54,573 “71 operations Non-current assets 309,
Slide 21: Business Unit Segment Reporting as of 30/09/23
BUSINESS UNIT SEGMENT REPORTING AS OF 30/09/23 IN €K GERMANY OTHER TOTAL Revenue 82,095 3,917 86,012 Other operating income 1,083 (e) 1,083 ——> EBITDA 22,029 1,140 23,169 Depreciation/amortisation - - -6,530 —> EBIT - - 16,639 Financial result - - -979 Share of loss from associates -27 — > ~EBT - -
Slide 22: Quarterly KPIs: Pay-in, Billings, ABPU, ARPU, MAU, CPL
Qi Q2 Q3 Q4 Qi Q2 Q3 2022 «2022S 2022, 2022S 2023. «2023'S 2023 Pay-in (in €m) 1101 138.0 120.6 140.8 121.4 128.4 1259 128.0 142.5 140.2 1477 713 158.8 167.3 1770 a Ga 140.0 174.4 157.3 181.0 163.3 169.5 160.3 163.4 181.2 V7 1861 2141 201.2 2099 2221 ABPU (in €) 49.46 54.48 5490 61.30 56.36 58.40 54
Slide 23: Games KPIs: Pay-in, Billings, ABPU, ARPU, MAU
Pay-in (in €m) 01 33 BILLINGS (in €m) 0.6 16.2 ABPU (in €) 58.74 30618 ARPU (in €) 549 22.02 MAU Cin k) 9 18 * Games business started in June 2023. GB Tp24 ZEALGED Geass ZEAL
Slide 24: Financial Calendar 2023
FINANCIAL CALENDAR 2023 Jan. Feb. Mar. Apr. May 2023 Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. 2024 Mar. Apr. May Jun. Publication of Annual Report 2022 Annual General Meeting Publication of Q1 Quarterly Statement Publication of Half- Year Report Publication of Q3 Quarterly Statement Publication
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 911.2023