LL Lucky Games

FINANCIAL OVERVIEW OF FIRST QUARTER OF 2024 (2023)

SIGNIFICANT EVENTS DURING THE FIRST QUARTER OF 2024

• On 25 January 2024, the Board of Directors of the Company resolved on a directed new issue of shares corresponding to a maximum of approximately SEK 20.5m at subscription price SEK 0.2454 per share, and a set-off issue of a maximum of approximately SEK 40.2m, which will fully settle the principal of the outstanding loan from NCTK Holdings International Limited (“NCTK”).
• The company's CEO, Calvin Lim Eng Kiat, acquired and then sold shares in the Company, initially triggering and subsequently ceasing the obligation for a mandatory bid.
• The Company completed conversion of its accounting principles for financial reporting from K3 to International Financial Reporting Standards (IFRS).
• Carina Beck resigned from the Board.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• The company terminates liquidity guarantee agreement with Carnegie Investment Bank.
• The new shares for both the directed issue (83,847,317) and the set-off issue (44,510,532) as resolved on 25 January 2024, are fully issued in the second quarter of 2024. The directed share issue generated approximately SEK 20.5m in cash, which will be used to support ongoing operations, ensure process continuity, and cover team development and operational costs. The set-off issue will settle the NCTK convertible loan of approximately SEK 40.2m.
• Fully owned subsidiary in Latvia is fully dissolved with insignificant financial impact due to impairments made in 2023.

A WORD FROM THE CEO
Dear Shareholders,
In the first quarter of 2024, we continued to capitalize on the opportunities identified in 2023, a year during which we marked significant developments and established ourselves as a key player in the gaming industry. These opportunities have positioned us for increased innovation and profitability. This quarter, we successfully conducted both a directed share issue and a set-off issue, which have enhanced our financial position and enabled us to further exploit our strong potential for expansion.

The strategic acquisition completed in 2023 opens new doors in Asia for 2024
At the end of 2023, we concluded the acquisition of 20% of the shares in CYG Pte. Ltd, which includes CY Labs. CYG Pte. Ltd is a prominent software development company specializing in Fintech and backend systems for the gaming industry. Through this acquisition, we have strengthened our presence and expanded our distribution network in Asia. In 2024, we are maximizing the newly found synergies and connections, and this has resulted in new revenue stream from CYG Pte. Ltd., where the Company provides technology development, maintenance and consulting services.

Directed share issue and set-off issue bolster company's financial position
Based on the authorization from the 2023 AGM, we conducted a directed share issue totalling approximately SEK 20.5m to existing shareholder Yi Ning Ko and external investor Bryan Fun Kha Choong in the first quarter of 2024. Additionally, a set-off issue totalling approximately SEK 40.2m has been executed for our major shareholder, NCTK Holdings International Limited. These share issues are expected to result in a dilution of approximately 45 percent in both the number of shares and votes for existing shareholders.

Bryan Fun Kha Choong, an influential investor active in our Asian market, has joined as a shareholder. His entry aligns with our expansion plans, and his involvement brings new resources to the Company. The capital from the directed issue will be used to support ongoing operations, ensure an uninterrupted flow of processes, and aid in the development and management of our teams. The set-off issue forms part of the terms for repaying a loan from NCTK Holdings International Limited, as previously communicated.

Having concluded that a directed share issue is the optimal path forward under the current market conditions, we have successfully completed this capital-raising exercise. The full amount of approximately SEK 20.5m of share proceeds has now been received, reinforcing our stakeholders' confidence in this strategic direction.

Transition to international accounting principles enhances global accessibility and comparability
In early 2024, the Group successfully completed the transition from K3 to International Financial Reporting Standards (IFRS) for financial reporting. This transition marks a significant milestone for the Company, aligning its financial reporting with globally recognized standards. This shift will notably improve our financial statements' accessibility and comparability on a global scale.

Accelerating our growth strategy in 2024
Our strong position in the market, combined with a strengthened financial position, ensures continued robust growth this year as more and more operators around the globe incorporate our games into their platforms. In addition to our strong organic growth, we will continue to evaluate strategic acquisitions and new revenue streams that complement our offerings and strengths.

We are grateful for the support and trust that you, our shareholders, have shown, and we look forward to continuing to build on these successes together. Our goal is to launch the next phase of our growth strategy, where we see opportunities for sustained increases in revenue.

Stockholm, 31 May 2024
Calvin Lim Eng Kiat
CEO

FUTURE REPORTING DATES
Annual General Meeting*: June 28, 2024
Q2 2024: August 23, 2024
Q3 2024: November 22, 2024
Q4 2024: March 14, 2025

* Financial reports for the general meeting will be available three weeks before the meeting takes place. All financial reports are published on the company's website, ladyluckgames.io.