LL Lucky Games

SUMMARY OF THE PERIOD

FOURTH QUARTER OF 2023 (2022)

• Revenues were MSEK 10.2 compared to 1.4 in Q4 2022, an increase by 629%.
• Operating loss was MSEK (9.3) compared to (10.8) in Q4 2022.
• EBITDA for the period was MSEK (5.6) compared to (8.9) in Q4 2022.
• Loss for the period was MSEK (12.6) compared to (12.0) in Q4 2022.
• Total assets were MSEK 73.1 compared to 20.9 in Q4 2022.
• Net assets were MSEK 36.9 compared to 0.1 in Q4 2022.
• Cash outflow from operating activities was MSEK (2.7) compared to (5.6) in Q4 2022.
• Loss per share was SEK (0.09) compared to (0.20) in Q4 2022.

FULL-YEAR 2023 (2022)

• Revenues were MSEK 28.9 compared to 5.0 in 2022, an increase by 478%.
• Operating loss was MSEK (59.0) compared to (37.6) in 2022.
• EBITDA was MSEK (41.1) compared to (31.8) in 2022.
• Operating loss and EBITDA in 2023 includes a special bonus for the previous CEO MSEK (13.0) and impairment charges of (6.0) both of which are non-cash items.
• Loss for the period was MSEK (64.9) compared to (41.6) in 2022.
• Total assets were MSEK 73.1 compared to 20.9 in 2022.
• Net assets were MSEK 36.9 compared to 0.1 in 2022.
• Cash outflow from operating activities was MSEK (26.0) compared to (33.7) in 2022.
• Loss per share was SEK (0.57) compared to (0.79) in 2022.

SIGNIFICANT EVENTS DURING THE FOURTH QUARTER OF 2023

• The Group acquired 20% in CYG Pte. Ltd for SEK 16.4 million and strengthens its presence in the Asian market.
• The Group reorganized for accelerated growth as Calvin Lim Eng Kiat became the new CEO.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• The Board of Directors of the Company resolved on a directed new issue of shares corresponding to a maximum of approximately SEK 20.5 million and a set-off issue of a maximum of approximately SEK 40.2 million, which will fully settle the principle of the outstanding NCTK Holdings International Limited (“NCTK”) loan.
• The subscription price in the Directed Issue is set at SEK 0.2454 per share. The proceeds will support ongoing operations, ensure process continuity, and cover team development and operational costs. The set-off issue will settle the NCTK convertible loan.
• Carina Beck resigned from the Board.

FIRST-TIME ADOPTION OF EU-IFRS

• This report for the fourth quarter of 2023 is the Group's first financial report prepared in accordance with International Financial Reporting Standards as endorsed by the European Union (“EU-IFRS” or “IFRS”).
• All comparative figures presented have been recalculated using EU-IFRS unless stated otherwise.
• Converting to EU-IFRS represents a significant milestone for the Group which should enhance investor’s ability to compare our results with other companies, provides a platform for further international expansion and removes a significant barrier to international capital markets.
• Although the main impact of the conversion is considered to be presentational the full details of the impact of this change on the previously reported K3 amounts for 2022 are presented at Appendix I.
• The Group's IFRS accounting policies are presented in Appendix II which will apply to the 2023 Annual report.

A WORD FROM THE CEO

Dear shareholders, in the fourth quarter of 2023 we have continued to capitalise on the opportunities that will position us for increased innovation and profitability. We have made significant progress during this quarter, such as continued expansion in the Asian market through strategic acquisitions, as well as strengthening our financial resources through a directed share issue.

In fiscal year 2023, we have also made significant progress, including increased growth through expansion into the Asian market, successful acquisition, multiple product launches and strategic partnerships. By providing high quality games with exceptional design and functional innovations to a wider player base, we have managed to increase our brand visibility globally.

We are well prepared to meet the challenges that lie ahead and to seize the opportunities that will position us for increased innovation and profitability. Our aim is to lead the company into the next phase of our growth strategy and maximise shareholder value through expansion in both existing and new markets.

In line with our said strategy, we have during the fourth quarter achieved:

Strategic acquisition of CYG Pte. Ltd opens new doors in Asia

We have completed the acquisition of 20% of the shares in CYG Pte. Ltd, including CY Labs. CYG Pte. Ltd is a prominent software development company specialising in fintech and back-end systems for the gaming industry, with headquarters in Singapore and an office in Manila, Philippines. Through this acquisition, we strengthened our presence and expand our distribution network in Asia, offering significant opportunities for synergies and skills transfer.

The company's robust and scalable back-end system enables high data capacity, giving us access to new IP technologies and the potential for new revenue streams. We are confident that this strategic move gives us the right conditions to continue our growth and create value for our shareholders. Together with CYG Pte. Ltd, we look forward to an exciting and successful future.

Directed new share issue and set-off issue strengthens the company's financial position

Based on the authorisation from the Annual General Meeting 2023, we have carried out a directed share issue of up to approximately SEK 20.5 million to existing shareholder Yi Ning Ko and external investor Bryan Fun Kha Choong. In addition, a set-off issue of up to approximately SEK 40.2 million has been carried out to our major shareholder NCTK Holdings International Limited. These issues entail a dilution for existing shareholders of a maximum of approximately 45 per cent of both the number of shares and votes.

Bryan Fun Kha Choong is an influential investor active in our Asian market. His entry as a shareholder is fully in line with our expansion plans, and his participation brings new resources to the company.

The directed issue provides capital that will be used to cover our ongoing operations, ensure an uninterrupted flow of processes, and to develop and manage our teams. The set-off issue is part of the conditions for the repayment of a loan from NCTK Holdings International Limited, as previously communicated.

Having considered various alternative financing options, including the possibility of raising capital through a rights issue, the Board of Directors believes that the directed share issue is the most favourable option for the company and our shareholders, given the current and challenging market conditions.

I look forward to leading our passionate team in the technology and gaming sector through the next phase of our growth strategy in 2024. Supported by our flexible infrastructure and our strong foundation in innovative development, we are ready to continue this amazing journey. Let's approach this year together with energy and commitment.

Stockholm, 8 March 2024
Calvin Lim Eng Kiat
CEO

FUTURE REPORTING DATES

Annual Report 2023: May 24, 2024

Q1 2024: May 24, 2024

Annual General Meeting: June 17, 2024 - Financial reports for the general meeting will be available three weeks before the meeting takes place.

Q2 2024: August 23, 2024

Q3 2024: November 22, 2024

Q4 2024: March 7, 2025

Financial reports will be published on the company's website, ladyluckgames.io.