Zeal Network SE — Earnings Release 2023

May 11, 2023

EARNINGS CALL

Quarterly Statement Q1 as of 31 March 2023 11 May 2023

(2) Tipp24 ZEAL BERIA (ZEAL WAY ZEAL

CONTENT

- Summary

• Financial Update
• Guidance 2023
• Key Take-Aways

SUMMARY

SUMMARY Q1 2023

• ದಿ Games licence received
• × Good start with double-digit growth
• ு EBITDA continues to increase
• ZEAL is a member of the WLA ರಿ
• ೦× Dividend proposal of € 3.60 per share approved by the AGM

11.05.2023

4

CURRENT REGULATION - LICENSING PROCEDURE

New GlüStV 2021

• 8 No expiry date (can't be terminated before 2028)
• x Opportunities: Games, Sports Betting

Broker Licence

Lotto24 broker permit valid until 30 June 2029

Games Licence

• � Licence granted by the GGL on 05/04/2023
• & Licence valid until 31 March 2028

GAMES LAUNCH EXPECTED IN H1 2023

Games license received

Ramp-up now expected for H2 2023 – 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

X Well-prepared launch and roll-out strategy

Product portfolio of numerous games to be launched in 2023 Launch through existing commercial platform with separate front-end to benefit from economies of scale

Continuous expansion and refreshing of the games portfolio

INSTANT WIN GAMES ARE ALREADY VERY POPULAR IN OTHER MARKETS

Instant win Games:

% of total lottery billings (2020/21) in different markets

Source: La Fleur's 2022 European Lottery Abstract, The European Lotteries, ONCE

GAMES ...

• 8 / Have great catch-up potential in Germany
• X As simple scratch cards are already well accepted in several federal states
• � Are strong growth drivers in other markets
• & With attractive high gross margin for ZEAL

However, there are limiting factors in the regulation that make it difficult to predict the speed of the ramp-up

FINANCIAL UPDATE

JACKPOT DEVELOPMENT - 0 PEAKS IN 2023 VS. 2 PEAKS IN 2022

Tipp24 ZEAL BERIA ZEAL WAND CEAL

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ZEAL INCOME STATEMENT Q1 2023 - CONDENSED

INCOME STATEMENT	01 2023 (in €k)	01 2022 (in €k)	CHANGE (in %)
REVENUE	26,699	25,114	+6.3
TOTAL COSTS OF OPERATIONS	-17,579	-16,452	+6.9
Personnel expenses	-5,078	-4,116	+23.4
Other operating expenses	-12,516	-12,354	+1.3
Marketing expenses	-7,001	-7,284	-3.9
Direct operating expenses	-2.730	-2,479	+10.1
Indirect operating expenses	-2,784	-2,592	+7.4
EBITDA	9,320	8,932	+4.3
Amortisation and depreciation	-2,194	-2,140	+25
EBIT	7,126	6,791	+49
Net profit after taxes	4,374	5,007	-12.6

2 REVENUE

Revenue increased by 6% due to the higher activity/more volume.

X TOTAL COSTS OF OPERATIONS

Total costs of operations increased by 7% compared to previous year.

Personnel expenses:

Personnel expenses increased (160 vs 156 average FTE's) mainly results from the stronger development of the LTI provisions, due to the increase of the ZEAL share price in the first months of 2023.

Marketing expenses:

Marketing expenses fell in the comparable first months of the year due to the less favourable jackpot situation.

Direct operating expenses:

Increase in direct operating expenses roughly in line with our billings development.

Indirect operating expenses:

Indirect operating expenses increased mainly due to the increase in costs for consulting and external staff (€164k) as well as for travel, training and representation costs (€95k). In contrast, we were able to save (€130k) on insurance premiums for charity lotteries.

EBITDA 6

EBITDA increased by 4% thanks to the higher revenues.

OTHER PERFORMANCE INDICATORS I

Despite weaker jackpots compared to the previous year, billings increased

11

OTHER PERFORMANCE INDICATORS II

Net cash generation driven mainly by the VAT reimbursement of €54m

OTHER PERFORMANCE INDICATORS III

GUIDANCE 2023

GUIDANCE 2023: RAMPING UP FOR THE NEXT PHASE OF GROWTH

In Em	2007 GUIDANCE	2072 (e)	8 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
Revenue 2)	110 – 120	105.2	� Increase of marketing expenses in FY 2023 in the range of €34-39m expected & The guidance includes a low single-digit million impact for "Games" business for both Revenue and EBITDA
EBITDA 37	30 - 35	31.7	് Expected mid-term revenue growth in low double-digit range (CAGR 2022-2027)

1 Based on an average jackpot development | 2 hcluding insurance | 3 Marketing expenses of €34m – €39m are expected

KEY TAKE-AWAYS

KEY TAKE-AWAYS

• ದ ZEAL continues to grow
• Games licence received X
• ✈ No significant business impact identified due to current changes in the geopolitical and economic environment
• & High cash return for shareholders

DISCLAIMER

The information contained herein must not be relistibuted, 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 implied) is nade as to and the 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 May 2023. Neither of this presentation nor any further discussions of the recipies with any of the recipients, shall, under any circumstances, create any implication that there in the affairs of any of the Companies since such date.

APPENDIX

CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET IN €K

INCOME STATEMENT	Q1 2023 (in €k)	Q1 2022 (in €k)	CHANGE (in %)	BALANCE SHEET Current assets		31/03/23 (in €)	31/12/22 (in €)	CHANGE (in %)
Revenue	26,699	25,114	+6.3			144,042	139,538	+3.2
Total costs of operations	-17,579	-16,452	+6.9		Non-current assets	315,840	320,197	-1.4
EBITDA	9,320	8,932	+4.3		ASSETS	459,882	459,736	+0.0
EBIT	7,126	6,791	+4.9		Current liabilities	43,754	44,562	-1.8
Profit before taxes	6,795	6,591	+3.1		Non-current liabilities	77,950	81,137	-3.9
					Equity	338,178	334,037	-1.2
Net Profit	4,374	5,007	-12.6		>> EQUITY & LIABILITIES		459,736	+0.0

BUSINESS UNIT SEGMENT REPORTING AS OF 31/03/23 IN €K

	GERMANY	OTHER	TOTAL
Revenue	25,417	1,282	26,699
Other operating income	199	O	200
EBITDA	9,069	252	9,320
Depreciation/amortisation	-		-2,194
EBIT	1		7,126
Financial result	1		-293
Share of loss from associates			-38
EBT	I	I	6,795
Income tax	-		-2,421
NET PROFIT/LOSS	I	I	4,374

22

KPIS

		Of 2074	07 2024 11		Q3 2021	01 2072 2017		Q2 2022		Of 20245
	BILLINGS (in Em)		163.3			181.2	177.1 -	186.1 -	214.1	201.2
	ABPU (in €)		56.3 58.3 --------------------------------------------------------------------------------------------------------------------------------------------------------------------	54.4 /			58.0	589	60.7	61.0
1	MAU (in k)		966		938	1,036 - - -	1,015 - - - -	1,053 - 1,053	1,175	1,100
	CPL (in €)		33.48 - 32.12 - 32.12	17.65			29.61			36.77

FINANCIAL CALENDAR 2023

(2) Tipp24 ZEAL (BERIA (ZEAL WWW ZEAL

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