Tipp 24 SE Smart Tech 2012 New York

Tipp 24 SE Smart Tech 2012 New York, March 2012

Tipp 24’s business model What we do NOT do: • We do not have a portfolio of hundreds of minigames • We are not an online scratch cards provider • We do not offer casino games or Bingo • We do not offer services offline lotto retailer • We do not have poker and we do not have a sports book strictly confidential 2

Tipp 24’s business model We only and exclusively do one single thing: • all our resources are focused exclusively on interactive lotteries and all our expertise is 100% dedicated to the success of National Lotteries and funding good causes strictly confidential 3

Tipp 24 is active in the interactive lottery market for more than a decade Credentials History Preliminary and unaudited figures 2011 Foundation 1999 Employees 120 Profitable since 2001 Revenues Start of Spain 2002 EBIT € 50 m Start of Italy 2004 Net profit € 32 m IPO (FSE prime standard) 2005 Cash equivalents Start of UK 2007 Start of skill-based games 2008 SDAX 2009 Revenues exceed € 100 m 2010 € 142 m € 130 m Since its foundation Tipp 24 has collected lottery tickets worth over $2 billion contributing more than $750 million for good causes and taxes. strictly confidential 4

Yesterdays discussion points “Internet represents a disruptive technology for retail and interactive lotteries will cannibalize retail business” strictly confidential 5

False myth: “Online Lotteries will cannibalize retail business” Limited cannibalization Effects of taking lotteries online: • Limited transfer from offline to online • Online advertisement has positive effect on offline business • The overall market increases Retail business • People play more, both online and offline • Additional players are attracted • Taking lotteries online helps to compete against other gambling products Additional retail revenues Interactive business 6

False myth: “internet represents a disruptive technology for retail business“ The Situation in gambling before 1990 was quite simple: The first time when people came into contact with gambling is in the offline world when they play the lottery. Age 7

False myth: “internet represents a disruptive technology for retail business“ The situation after 1990 is more complex: Within the interactive world people learn very early how to gamble, and it’s not about lotteries… Age 8

Yesterdays discussion points Conclusion: • Interactive will not cannibalize retail business • Internet is not a disruptive technology for retail business • The real threat is the disruptive social behavior and therefore lotteries need to go online as soon as possible strictly confidential 9

Yesterdays discussion points “National Lotteries have to make profits from the interactive business the first day” strictly confidential 10

Tipp 24 is recognized as very relevant and reliable partner in the lottery market Key Competitive Advantages Tipp 24 General Technology Marketing • Very reliable, long-term • In-house technology • Long online advertising oriented business partner • Focus on "green"* players and regulated markets • Strong financial position • A 100% dedication and focus on lotteries online • Lottery focused IT platform • Focus on customer intelligence • Particular experience with peak loads in mass transaction business • High degree of experience • Extensive CRM knowledge • Leading know how in predictive analytics • Highly sophisticated analytical and controlling tools and methodology redundancy / backup Recent invest of 23 M€! * 12 years experience! Non-addictive games strictly confidential 11

Lotto Rhineland – Palatinate initiated a very successful ASP cooperation with Tipp 24 in 2005 Case Study I – Lotto RLP Situation Solution • Cost of online operations high • Tipp 24 runs Lotto RLP website in full ASP model – Management of website – CRM (incl. call center) – Payment processing • Revenue per customer online rather poor • Tipp 24 already very reliable brokerage partner • Full variable commercial deal (% of billings) + 40% in billings in 15 days strictly confidential 12

Web. de asked Tipp 24 to replace existing lottery ASP in 2006 Case Study II – Web. de Situation Solution • Web. de runs Lotto-ASP offer with • Tipp 24 creates alternative full-ASP competitor of Tipp 24 offer in few weeks • Web. de is dissatisfied with service • Demanding migration from (reliability, pace / cost of innovation) • Time scale for possible switch is very short (< 8 weeks) competitor database is smoothly performed • Full product range available • Commercial terms are fully variable, unlike before + > 20% in billings in 3 weeks strictly confidential 13

In Italy all KPIs crashed after new law stopped Tipp 24's platform Case Study III – Super. Enalotto Situation Problem • Since 2004 Tipp 24 run a proprietary • Since October 2009 Tipp 24 is forced and very successful lottery (Super. Enalotto) application in Italy by law to use Sisal’s lottery applet • Full rage of Tipp 24 services available for Italian customers • Sisal's applet offers no services, no usability, no stickiness • Customer acquisition cost exploded • Very appealing applet with excellent • Customer satisfaction and loyalty usability close to zero • Very low customer acquisition costs • Very high customer satisfaction and loyalty • CPL almost doubled • Activity rate crashed • Revues per customer down • Very profitable business model by almost 90% strictly confidential 14

Lottery platforms have to serve different requirements than Gambling platforms GAMBLING • Entertainment • Single purchases • Specialized market • Fun • Relatively low prize pay outs • Pre-payment • Predictable traffic • Email serves to sell LOTTERIES D I F F E R E N C E strictly confidential • Dreams (Change your life) • Subscription • Mass market • Trust (comparable to a bank) • Pay outs up to € 180 m • Shopping basket • Extreme high jackpot peaks • Emails are essential for customers 15

Strong increase in registrations, stable active customer ratio and high level of billings per active customer lead to a stable and growing floor of billings BEFORE 2009 Cumulative Billing Contribution of Customer Generations per Quarter* € millions 130 125 120 115 110 105 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 Large Jackpots Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 00 00 01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 Q 1 2000 * Source: Q 2 2000 Actual billings generated from 2000 onwards Company information strictly confidential 16

Yesterdays discussion points “Draw based games and Jackpots are the killer app” strictly confidential 17

Tipp 24’s technology has proven to be best in class In 2007 we had to face a very critical situation because of the highest jackpot ever (43 m Euro) in Germany: Offline lotto shops run out of lottery tickets All online shops were down because of the extremely high traffic Offline and online clients came to the last shop available: tipp 24. de Tipp 24 was able to serve all its partners Tipp 24 handled over 6. 000 transaction per Minute Tipp 24 acquired more than 55. 000 new customers in just one day. strictly confidential 18

Tipp 24‘s key competitive advantages in a nutshell ++ 100% dedicated and exclusively focused on online lotteries ++ 12 years experience in serving business partners and end consumers of interactive lotteries ++ Proven ability to deliver highest customer loyalty and value ++ Best in class technology and marketing excellence for interactive lotteries ++ Very reliable and long-term oriented business partner strictly confidential 19

Thanks for your attention! Please contact: Marcus Geiss Executive Board Director marcus. geiss@tipp 24. de Tipp 24 SE +49 40 325533 -0 www. tipp 24 -se. de Whoever believes that the digital world is only a second priority might run into some real world problems. . . New York Times, January 18, 2012 Kodak, the 131 -year-old film pioneer that has been struggling for years to adapt to an increasingly digital world, filed for bankruptcy protection today. strictly confidential 20