JUMBO INTERACTIVE LIMITED RESULTS PRESENTATION For the half year - PowerPoint PPT Presentation

JUMBO INTERACTIVE LIMITED RESULTS PRESENTATION For the half year ended 31 December 2018 ABN 66 009 189 128 H1 FY19 Results Presentation | 1

CONTENTS RESULTS HIGHLIGHTS 2 JUMBO LONG TERM GROWTH PROFILE 6 DIVIDENDS OVERVIEW 8 VISION & STRATEGY 9 FINANCIAL PERFORMANCE 12 FINANCIAL POSITION & CASH FLOW 13 OUTLOOK & GUIDANCE 15 H1 FY19 Results Presentation | 1

RESULTS HIGHLIGHTS NEW SOFTWARE PLATFORM UNDERPINNING A NEW SOFTWARE PLATFORM WENT LIVE IN FY2017 SURGE IN CUSTOMER ENGAGEMENT § Gradual migration of customers to the new platform completed early FY 2018 § 199,410 new accounts (91.9% increase on pcp § OzLotto reached $70 million in July 2018 103,912) § Powerball reached $100 million in August 2018 § 576,144 active customers (47.9% increase on pcp § Increased capacity allowed more aggressive marketing, 389,510) especially during peak jackpot periods. § $12.87 cost per lead (down 31.6% on pcp $18.81) § Enhanced user experience driving customer § $419.78 average customer spend (13.8% increase on engagement pcp $368.91) NEW CUSTOMER ACCOUNTS: ACTIVE CUSTOMER ACCOUNTS: 600,000 200,000 450,000 150,000 300,000 100,000 350,300 361,701 389,510 576,144 108,650 103,912 199,410 150,000 50,000 77,803 0 0 H1 H1 H1 H1 H1 H1 H1 H1 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 H1 FY19 Results Presentation | 2

RESULTS HIGHLIGHTS (CONTINUED) NEW POWERBALL DELIVERING MORE LARGE JACKPOTS § New Powerball format a success § $100 million Powerball jackpot in August 2018 § 23 large jackpots (Oz Lotto/Powerball at or above $15 million) vs 18 in H1 FY18: – Aggregate value of large jackpots - $860 million vs. $480 million – Average value per large jackpot - $37.4 million vs. $26.7 million § 6 Jackpots at or above $50 million vs. 2 in H1 FY18: – One $100 million Powerball jackpot in the period – Game change to Powerball has delivered increased jackpots and higher TTV 24 $38m 24 22 $36m 22 Average value of jackpot pool at or above $15m 23 21 20 $34m Total number of large jackpots 18 $32m 18 18 16 $30m 16 16 14 $28m 15 14 14 12 $26m 10 $24m Average value of jackpots at or above $15 million 8 $22m Total number of jackpots 6 $20m 6 at or above $15 million 5 4 $18m 4 2 3 Total number of jackpots at 2 2 2 1 1 2 $16m or above $50 million H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 FY16 FY17 FY17 FY18 FY19 FY14 FY14 FY15 FY15 FY16 FY18 H1 FY19 Results Presentation | 3

RESULTS HIGHLIGHTS (CONTINUED) SIGNIFICANT GROWTH ACHIEVED IN THE HALF YEAR 1 § Customer Engagement and more Jackpots driving TTV up 66.0% to $147.9 million (pcp $89.1 million) – 21.5% of all lottery sales in Australia are now sold online 2 - Jumbo continues to participate in this signifj - cant growth § Revenue up 57.9% to $30.5 million (pcp $19.3 million) – Revenue margin achieved 20.6% (pcp 21.7%) – 110bps reduction mainly from a changein product mix mainly from large jackpot activity § Net Profit before Tax (NPBT) up 136.2% to $18.2 million (pcp $7.7 million): – NPBT margin achieved - 59.7% (pcp 39.9%) – EBITDA margin up to a record 62.6% (pcp 46.5%) – Increased margin due to effective cost control management – Highlights the signifjcant profjt leverage Jumbo can generate from increased TTV and Revenue § EPS - 21.42 cents per share up 105.8% from 10.41 cents per share in H1 FY18 § DPS - 15.0 cents per share up 100.0% from 7.5 cents per share in H1 FY18 § Impressive cash flow generated in the half year: – Operating cash fmow of $22.1 million – Free cash fmow of $13.1 million (operating cash fmow net of capex and dividends paid) 1 Results presented on a Continuing Operations basis H1 FY19 Results Presentation | 4 2 Source: Tabcorp Limited Investor Presentation dated 13 February 2019

RESULTS HIGHLIGHTS (CONTINUED) REVENUE DIVERSIFICATION ON TRACK § Charitable lottery TTV up 23% to $3.6 million – Complimentary segment to the National Lottery Game segment – Australian market size for charitable lotteries estimated at $1 billion per year – 9 products across 6 Charity Lotteries are currently sold on Jumbo online platforms – RSPCA added to the portfolio in January 2019 § Software as a Service (SaaS) - Powered by Jumbo – Charity lotteries are in need of a complete lottery solution - Powered by Jumbo offers this solution – State/Provincial based lotteries are also in need of specifjc software components - Powered by Jumbo offers this solution – Mater Lottery agreement signed on 13 November 2018 (5+5 year SaaS agreement) – New agreements are expected going forward H1 FY19 Results Presentation | 5

DEMONSTRATED LONG TERM GROWTH REVENUE TOTAL TRANSACTION VALUE (TTV) $32m $150m $30m $140m $28m 5 year CAGR - 10.9% 5 year CAGR - 9.6% $130m $26m $120m $24m $110m $22m $100m $20m $90m $18m $80m $16m $70m $14m $60m $12m $50m $10m $40m $8m $30m $6m $20m $4m $10m $2m $54.7m $52.2m $65.9m $62.6m $80.3m $73.0m $69.7m $75.6m $89.1m $94.1m $147.8m $12.3m $12.5m $14.7m $14.4m $17.7m $16.4m $16.0m $16.4m $19.3m $20.5m $30.5m H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 EBITDA MARGIN - CONTINUING OPERATIONS NET PROFIT AFTER TAX - CONTINUING OPERATIONS 70% $16m 62.6% $15m 60% $14m $13m 50% $12m 51.0% 5 year CAGR - 31.6% 45.5% 44.9% $11m 46.5% $10m 40% 41.3% $9m 36.1% 32.5% $8m 30% $7m 29.7% 28.6% 28.6% $6m 20% $5m $4m 10% $3m $2m $1m 0% $1.8m $2.5m $2.4m $1.9m $3.4m $4.0m $3.5m $4.1m $5.3m $6.4m $12.7m H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H1 FY19 Results Presentation | 6

DEMONSTRATED LONG TERM GROWTH (CONTINUED) ONLINE LOTTERIES - A GROWING MARKET 22% § 21.5% of Australian lottery tickets now sold online 1 – 4 year CAGR 17.7% 20% % of Australian lottery sales through the online channel 1 – 4 year CAGR 19.2% for Jumbo fmagship website % 2 1 . 5 ozlotteries.com (lottery and charity games) 18% 4 year CAGR - 17.9% 1 6 . 8 % § UK 2 is at 24% 16% § Finland 3 (global leader) is at 48% 1 3 . 7 % 14% § The only pure digital play listed lottery company in 1 2 . 7 % Australia. 12% 1 0 . 4 % 10% 8 7 % . 8% 6% 4% 2% H1 FY19 FY14 FY15 FY16 FY17 FY18 1 Source: Tabcorp Holdings Limited / Tatts Group Limited public fjlings 2 Source: UK Lotteries Ltd, Company Annual Report and fjnancial statements for the year ended 31 March 2018 3 Source: Public Gaming Research Institute 17 February 2017 H1 FY19 Results Presentation | 7

DIVIDEND OVERVIEW EXCEPTIONAL SHAREHOLDER RETURN FROM A GROWTH COMPANY § Strong cash generative nature of operations supports dividend policy § Interim fully franked dividend: – 15.0 cents per share – Record date 8 March 2019 – Payment date 22 March 2019 – Dividend Re-investment Plan (DRP) continues to be suspended § 71.6% payout ratio - Targeted dividend policy of 85% of NPAT for the full year is retained § $12.0 million franking credit balance 18 16 15.0c 15.0c 14 Dividends - Cents per share 12 11.0c 10 8.0c 8 7.5c 6 5.0c 5.0c 4 3.5c 2.0c 2 1.5c 1.5c 1.5c 1.5c 0 H2 FY17 H1 FY19 H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17 H1 FY18 H2 FY18 H1 FY19 Results Presentation | 8 Dividend per share - ordinary declaration Dividend per share - special declaration

VISION & STRATEGY 20/20 VISION § Developing and Operating the world’s best digital lottery experience § 25% Online lottery players by 2020 § Significant diversification by 2020 STRATEGY - SOFTWARE PLATFORM § Best of breed Software Platform: – Continuing ongoing development – Continue to provide momentum to Jumbo’s growth profile – Continue to improvement to Customer Engagement KPIs – Continue to maintain “Powered by Jumbo” product competitiveness H1 FY19 Results Presentation | 9

VISION & STRATEGY (CONTINUED) STRATEGY - FIRST TO MARKET ONLINE INNOVATIONS § Lotto Party - Online lottery syndication: – First online lottery operator to offer syndication in Australia – Group play as a percentage of total TTV has increased to 10% – Combats jackpot fatigue – Drives growth through “Refer a friend” – Attracts a younger demographic § Class leading mobile App: – Trend to mobile continues – Mobile accounts for about 75% of all customer interactions – Jumbo offers a 5-star App to the Australian market – Provides automatic results notifjcation ensuring continued customer interaction after a draw § Voice interaction: – Oz Lotteries voice app launched on Google Assistant – Product is still new in the market but early indications are good – Apple Siri to be launched in future periods H1 FY19 Results Presentation | 10 H1 FY19 Results Presentation | 10