Lottomatica Group (LTMC) Investor presentation summary

Transaction overview and strategic rationale

• Announced acquisition of Cirsa, targeting leadership in Spain and select Latam gaming markets with stable regulation and significant online growth potential.

• Cirsa’s focus on Spain and Latam has delivered predictable, growing earnings and high EBITDA growth, outperforming international gaming peers.

• The combined entity expects to maintain a c.10% EBITDA CAGR from 2026-2029 and distribute approximately €12 per share over three years, based on €115m annual cash synergies.

• Online growth is the primary driver of value creation, with Cirsa positioned to replicate Lottomatica’s previous online expansion.

• The transaction is projected to be double-digit EPS accretive by 2028, excluding potential online revenue synergies.

Cirsa’s market leadership and business mix

• Cirsa is the #1 operator in Spain’s regulated gaming market, leading in online, betting, casino, and distributed gaming segments.

• Holds top positions in Panama, Colombia, Peru, and Paraguay, with strong EBITDA margins across geographies.

• Spain’s market is characterized by stable regulation, capped permits, and a fragmented operator landscape, favoring incumbents.

• Cirsa’s omnichannel model leverages a large retail network to drive online customer acquisition under strict advertising rules.

• Vertical integration through machine manufacturing and smart slot technology enhances competitive advantage in distributed gaming.

Latam growth and regulatory environment

• Cirsa’s Latam markets show attractive macroeconomic stability, with 3.1% GDP CAGR (2025-28E), low inflation, and stable currencies.

• Latam online GGR grew at 24.7% CAGR (2022-25), and retail at 6.6%, both outpacing European averages.

• Cirsa’s Latam EBITDA grew at a 9.7% CAGR (2018-25), supported by local-currency cost base and disciplined cash management.

• Regulatory frameworks in Latam are stable, with high barriers to entry and favorable tax regimes.

• Cirsa leads in key Latam markets, including Panama, Colombia, Peru, and Paraguay, with dominant positions in both online and retail.