Zeal Network SE — Earnings Release 2023

Aug 10, 2023

EARNINGS CALL

Half-Year Report H1 as of 30 June 2023 10 August 2023

(2) Tipp24 ZEAL BERIA (ZEAL WAY ZEAL

CONTENT CONTENT CONTENT CONTENT CONTENT

• Summary

• Business Update

• Financial Update
• Guidance 2023
• Key Take-Aways

SUMMARY

SUMMARY H1 2023

• × Further strong business volume growth
• � High jackpot situation initiated massive marketing measures
• & Customer acquisition accelerated
• Virtual slot games launched in June ત્વ
• & LOTTO24 customer has hit the next big jackpot this year.

10.08.2023

4

Tipp24 ZEAL BERA ZEAL ※料 ZEAL

BUSINESS UPDATE

GAMES BUSINESS LAUNCHED

ಕ್ಕಾ Games business launched

First games online – 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

Continuous expansion and refreshing of the games portfolio

Currently 12 games online - more games will follow in the next weeks

It is planned to expand the range to up to 200 titles within the first year

FINANCIAL UPDATE

JACKPOT DEVELOPMENT - 3 PEAKS IN 2023 VS. 4 PEAKS IN 2022

= 2022 == 2023

(24)

ZEAL INCOME STATEMENT H1 2023 - CONDENSED

INCOME STATEMENT	H12023 (in €k)	H12022 (in €k)	CHANGE (in %)
REVENUE	54,829	49,376	+11.0
TOTAL COSTS OF OPERATIONS	-41,921	-34,753	+20.6
Personnel expenses	-10,371	-10,280	+0.9
Other operating expenses	-31,609	-24,492	+29.1
Marketing expenses	-20,021	-13,941	+43.6
Direct operating expenses	-5.410	-4,981	+8.6
Indirect operating expenses	-6,178	-5,570	+10.9
EBITDA	13,763	16,447	-16.3
Amortisation and depreciation	-4,421	-4,302	+2.8
EBIT	9,342	12,145	-23.1
Net profit after taxes	5,586	9,432	-40.8

19 REVENUE

Revenue increased by 11% due to the strong growth of billings.

X TOTAL COSTS OF OPERATIONS

Total costs of operations increased by 20% compared to previous year.

Personnel expenses:

Personnel expenses remained stable. The average number of employees (FTEs) rose year on year from 158 to 168.

Marketing expenses:

Marketing expenses increased by 44% as marketing activities were significantly increased during periods of high jackpots such as June.

Direct operating expenses:

Direct operating expenses increased only by 9%, while billings increased by 15% due to savings in age verification and lottery clubs.

Indirect operating expenses:

Indirect operating expenses were up by 11%, mainly due to an increase in costs for consulting services for our Spanish ONCE business and additional provisions for litigation, as well as for travel, training and entertaining costs.

EBITDA 6

EBITDA fell by 16% mainly as a result of the strong increase in marketing expenses.

OTHER PERFORMANCE INDICATORS I

OTHER PERFORMANCE INDICATORS II

Net cash development was strongly influenced by the special dividend paid. High jackpot phase led to significant expansion of our customer base

OTHER PERFORMANCE INDICATORS II

10.08.2023

GUIDANCE 2023

GUIDANCE 2023: RAMPING UP FOR THE NEXT PHASE OF GROWTH

	In Em	2007年 GUIDANCE	2092	% Guidance for FY 2023 based on a normalised jackpot situation
	Billings (Germany segment)1)	800 - 830	758.4	× ZEAL will make the necessary investments for future growth
				✈ Increase of marketing expenses in FY 2023 in the range of €34-39m expected
	Revenue 2)	110 – 120	105.2	& The guidance includes a low single-digit million impact for "Games" business for both Revenue and EBITDA
	EBITDA 37	30 – 35	31.7	(X Expected mid-term revenue growth in low double-digit range (CAGR 2022-2027)

1 Based on an average jackpot development | 2 | nurance | * Marketing expenses of € 34m – € 34m – € 3 m are expected

KEY TAKE-AWAYS

KEY TAKE-AWAYS

• ત્ત્વ ZEAL continues to grow
• ഗ Games business launched successfully in June
• க Customer acquisition accelerated
• ും High jackpot situation initiated massive marketing measures

DISCLAIMER

The information contained herein must not be redistributed, reproduced published, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose.

This document contains certain forvard-looking to the businesses, financial performance and results of the industry in which the Companies operate. Such forward-looking assumptions, opinions and views of the Companies and statements from third parties, are uncertain and subject to risks. A multitude of factors to differ significantly from any anticipated development. The Companies do not guarantee that the assumptions underlying statements are free from errors, nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments.

No representation or warranty (express or ino no reliance should be placed upon, any information, including projections, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, ontained herein, and, accordingly, none of the Companies or any of their subsidiary undertakings or any of such personts any liability whatsever arising directly or indirectly from the use of this document.

By accepting this presentation, you acknowledge that your own assessment of the market and the market position of each of the Companies and that you will conduct your own analysis for forming your own view of the potential fullure performance of each of the Companies' businesses.

This presentation is for information only and shall not constitute in intended for solicitation purposes but only for use as general information..

This presentation is dated August 2023. Neither the discussions of any of the Companies with any of the recipients, shall, under any circumstances, create any implication that there has been no change in the Companies since such date.

APPENDIX

CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET IN €K

INCOME STATEMENT	H1 2023 (in €k)	H1 2022 (in €k)	CHANGE (in %)		BALANCE SHEET	30/06/23 (in €)	31/12/22 (in €)	CHANGE (in %)
Revenue	54,829	49,376	+11.0		Current assets	73,665	139,538	-47.2
Total costs of operations	-41,921	-34,753	+20.6		Non-current assets	314,084	320,197	-1.9
EBITDA	13.763	16,447	-16.3		ASSETS	387,749	459,736	-15.7
EBIT	9,342	12,145	-23.1		Current liabilities	50,539	44,562	+13.4
Profit before taxes	8,762	12,247	-28.5		Non-current liabilities	76,393	81,137	-5.8
					Equity	260,817	334,037	-21.9
Net Profit	5,586	9,432 - -	-40.8	)	EQUITY & LIABILITIES		459,736	-15.7

BUSINESS UNIT SEGMENT REPORTING AS OF 30/06/23 IN €K

	GERMANY	OTHER	TOTAL
Revenue	52,252	2,577	54,829
Other operating income	855	O	855
EBITDA	13,160	୧୦୬	13,763
Depreciation/amortisation	-		-4,421
EBIT			9,342
Financial result			-580
Share of loss from associates			-0
EBT			8,762
Income tax			-3,176
NET PROFIT/LOSS			5,586

FINANCIAL CALENDAR 2023

	20075									20924
						Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. 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							11 May 2023
Publication of Half- Year Report									10 August 2023)
Publication of Q3 Quarterly Statement													9 November 2023
Publication of Annual Report 2023																20 March 2024

ZEAL

10.08.2023

22

KPIS

	074 074		Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2022 Q4 2022 Q1 2023 Q2 2023
BILLINGS (in €m)					177.1		210.5
ABPU (in €)			58.40				61.42
MAU (in k)		968		938	1,175	1,100	1.142
CPL (in €)			32.12				50.83

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

Straßenbahnring 11 20251 Hamburg