CORPORATE RESPONSIBILITY REPORT 2018

CORPORATE RESPONSIBILITY REPORT 2018 INTRODUCTION 01 With more than 50 % market share, we are the number one in Germany. How did we get there? Which products and services do we offer? Discover how we increase “Spannung” and Who We Are. How do we live up to be a responsi- ble company? Find out about our standards and which topics we focus on in the Corporate Responsibility section. EMPLOYEES: OUR GREATEST ASSET 12 Our employees are a key factor for our success and show high engagement in cultural values. How do we live our values? What does diversity mean for us as One Tipico? How we foster Employee Engagement? In this section you further get to know how we let our employees shape our culture and maxi- mize their personal and professional skills. PRODUCT RESPONSIBILITY: IN SAFE HANDS 22 Around 80 % of German adults have used a gambling offer. How do we run our business to increase Customer Satisfaction? How are we fostering Clean Sports via sports integrity partnerships? How are we using technology to increase our Player Protection and make sure our offer attracts Adults only? In this section we offer all the answers concerning our Product Responsibility. RESPONSIBLE OPERATIONS: OUR APPROACH 31 Business integrity is required for sustainable success. How is our Governance structure set up? How do we dynamically adapt to a market in which change is the only constant? How do we prevent of Money Laundering? How do we keep our data safe? In our description of our approach you learn about Business Et- hics and how we protect our business and our customers from criminal activity. OUR COMMUNITIES: BEYOND BUSINESS OPERATIONS 38 In 2018, more than 260,000 € were donated in the field of healthcare, preven- tion research and social development as part of our community involvement. What do Our Communities look like and how do we support them? In Com- munity Involvement, you will find further information about the amounts do- nated to charitable causes and hours spent with community work. OUR ENVIRONMENTAL IMPACT: LESS IS MORE 42 Following the motto “less is more”, we are focussing on reducing Our En- vironmental Impact. How are we reducing negative impact? And how do we manage to save 70,000 plastic bottles per year? Information on CO2 emissi- ons resulting from our Business Travels are further described in this section. SUPPLY CHAIN: KNOW YOUR BUSINESS PARTNERS 49 97 % of our business partners come from EU member states. How do we the- reby positively support human rights matters? And how do we make sure to get a precise picture of all our business partners? Find out more in Our Supply. WE NEVER SETTLE FOR SECOND APPENDIX IMPRINT AND CONTACT 53 54 62 2

OUR COMPANY VALUES We TRUST that every member of our organization does the right thing to contribute to the overall success of the business. We take the trust placed in us by our customers or other stakeholders as an incentive to continuously maintain a safe environment, integrity and trusted relationships. PROGRESS describes our constant quest for improvement. We put this endeavour into action through trai- ning and further education of our employees as well as constant innovation and further development of our services. Due to our PASSION for sports, we enjoy our work. This also connects us closely to our customers, because we share another common dedication: We never settle for second. 4

OUR DIGITAL PRODUCT IN NUMBERS We have the #1 sports betting app in the German App Store We own more than 50 % of market share in the German sports betting market On average, we handle 5 million bets per day SPORTS COVERAGE OVERALL EVENTS 15% 4% 5% 6% Soccer Basketball Tennis Ice-Hockey Volleyball Handball Remaining 12% 13% SPORTS COVERAGE BY TURNOVER 2% 1% 2% 1% 45% 6% 7% Soccer Tennis Basketball Volleyball Ice-Hockey Handball Remaining 81% World Cup 2018 57 million bets (50/Sec) Number of Offered Sports - Overall 30+ Average of Offered Sport Events per Day in 2018 - Overall 760 Unique Active Online User up to 250,000 on a football match day TOP 3 FOOTBALL COMPETITIONS 2018 TOP 3 COMPETITIONS 2018 OTHER SPORTS BY TURNOVER BY TURNOVER 6

OUR PARTNERS We are valued as a reliable partner in the sports world: In Germany, as the official partner of the Bundesliga and 2nd Bundesliga, football club FC Bayern Munich as well as the basketball team FC Bayern Basketball. In Austria, we are the title sponsor of the Tipico Bundesliga. 8

In all our entities, local staff members have volunteered to act as CR ambassadors. They have better insight into their local communities and are therefore well-positioned to identify potential economic, environmen- tal and social Impact in their specific location. These ambassadors help our central CR to connect with local communities, raise awareness in their regions, as well as support approved employee-driven charitable ac- tivities and practical execution of local volunteering projects. Through this framework, we can assure that all environmental, social and governance (ESG) Impact of our Group entities are taken into consideration and coordinated clearly within the Tipico Group. DEFINING OUR MATERIAL ISSUES Internal stakeholders such as employees and external stakeholders such as customers, regulators, suppliers, partners, shareholders and society trust in our performance and sustainable business practices. Through strategic prioritisation of CR topics, we live up to these expectations. In accordance with the Global Repor- ting Standards (GRI), material topics are all those that lead to direct or indirect social economic or environ- mental Impact and are therefore relevant to stakeholders of a business or society. We drew up findings of stakeholder surveys conducted in all locations of operation involving internal and external views. Based on a stratified sample, 112 internal stakeholders were consulted to assess the relevance of different aspects of CRs. This consultation also included estimates for the current performances in these areas. The analysis was supplemented by external viewpoints gained through nine dialogue sessions with a wide range of stake- holders which ranked the topics concerning relevance for us. These external positions were used to balance internal opinions to reach a more holistic perspective. + L A N R E T X E - E C N A V E L E R -- RELEVANCE - INTERNAL + Compliance Consumer Protection Business Ethics Training and Development Diversity and Equal Opportunities Community Involvement Human Rights Supply Chain Environmental Impact 10

EMPLOYEES: OUR GREATEST ASSET WE ARE COMMITTED TO: • applying fair labour practices while respecting applicable labour laws • providing development opportunities, which are aligned with individual and organizational needs and focus on growing knowledge, skills, interper- sonal communication and leadership • encouraging the lifelong education of emp- loyees, through appropriate training budgets distributed across locations • supporting regular feedback sessions between IN 2018: • 82 % of our employees participated in the emp- loyee satisfaction survey; 81 % believe Tipico is a responsible and trustworthy operator • we started the alignment of core HR processes to support “One Tipico” • we started the migration of all employees to a single HR information system to allow improved data flows • we commenced culture workstreams • we launched and rolled out our Tipico Leader- employees, managers and peer groups ship Standards • providing the necessary tools and resources to enable employees to execute their accountabili- ties • supporting the health of employees by provi- ding benefits such as health days or supporting sports activities • we promoted diversity by becoming a member of the Diversity Charta 12

Our strategy leading to such diverse teams is a simple, uncompromising meritocracy without any pre- judice: always hire the best candidates. By focusing on qualifications, values and motivations, we have absolute clarity on the values that new employees add to the company. Through this, our Group natur- ally becomes even more diverse. Our international team consists of employees from around 40 different nations, and we benefit from the expertise and unique perspective of each and every one of them. On senior levels (executives, directors and head of departments) the blend of nationalities is also diversified, with approximately 40 % coming from the local communities in which we operate. In 2018, no incidents of discrimination were reported. In 2018, we signed the Diversity Charta, a corporate initiative to promote diversity in companies and in- stitutions under the auspice of the German Federal Chancellor Dr. Angela Merkel. The charter aims at promoting recognition, appreciation, inclusion and diversity in the work and everyday life in Germany. As one of the first companies in the gambling in- dustry, we became part of this initiative. Even though internationality is a strength, other dimensions of diversity are of equal importance to us. Therefore, we try to minimize barriers for employees with special needs and track gender and age relations of employees. Nevertheless, still more men than women show interest in our indus- try. This becomes apparent when considering data of our customer base, with is predominantly male (90 %). The ratio is similar in our Group. Around 78 % of employees are male, as well as 88 % of our leadership positions. However, we attempt to advertise vacant positions to attract a broad and diverse group of candidates – beyond those who know and love sports betting. #FLAGFORDIVERSITY “The Tipico Group employs more than 700 people from more than 40 countries. The diversity that results from differences offers us a tremendous opportunity. Each employee has his or her own talents and abilities to help Tipico succeed” #FlaggefürVielfalt – Joachim Baca, CEO 14

AVERAGE NUMBERS OF EMPLOYEES IN CORE BUSINESS AREAS1 700 600 500 400 300 200 100 687 656 591 606 H1, 2017 H2, 2017 H1, 2018 H2, 2018 job applications. Along with the steadily growing market presence and increased product offers, our team is continuously growing. The average number of employees in core business areas grew by more than 12 % between 2017 and 2018. Around 93 % are employed indefinitely. 95 % of all our employees in core locations are working full time. These numbers change, when including our retail businesses, with only around 60 % working full time. This can be explained by a high number of students and workers in the retail business. EXCITING CAREER OPPORTUNITIES WITHIN THE TIPICO GROUP The annual fluctuation rate of employees between 2017 and 2018 remained stable at around 18 %, with lower monthly rates towards the end of the year. Because our goal is to maintain the best talent, attractive career development opportunities for our employees are essential. For instance, in Malta 34 employees (12 %) got promoted or advanced internally to higher positions. This applies especially to the customer support team, which is often seen as a steppingstone to understand the company and progress from there on. Having the outside perspective as a starting point enables us to focus on our customers and their experience throughout a Tipico career. During 2018, 46 % of customer service agents moved to new roles. EMPLOYEE WELLBEING The health and safety of our employees is very im- portant to us. Even though our workplace is not considered a high-risk environment, we still offer our employees benefits such as gym members- hips, health- and sports days and subsidies for pri- vate health insurance. These offers together with flexible work times pay off. Across the Group, the average of sick days is below five days per year. All locations were public data is available are consi- derably below their respective national averages (Germany 2017; Croatia and Malta 2014 ), with Ger- many at an average of 7.7, Malta at an average of 2.2 days, Croatia at an average of 2.9, Colombia at an average of 2.5 and Gibraltar at an average of 2.75 sick days per year. ANNUAL SICK LEAVE OF TIPICO COMPARED TO NATIONAL AVERAGES2 IN PERCENTAGES 120 % 100 % 80 % 60 % 40 % 20 % 0 % 72 % 47 % 34 % Croatia Germany Malta 1Core business areas are calculated without on-site retail businesses. 2Statista (2019) Retrieved from: https://de.statista.com/statistik/daten/studie/13441/umfrage/entwicklung-der-jaehrlichen-anzahl-krankheitsbedingter-fehlta ge-je-arbeitnehmer/ 3World Health Organization (2018) Retrieved from: https://gateway.euro.who.int/en/indicators/hfa_411-2700-absenteeism-from-work-due-to-illness-days-per- employee-per-year/ 16

EMPLOYEE ENGAGEMENT: STAFF SHAPING CULTURE At Tipico, we believe that the best way to con- tinue success is by taking care of employees’ needs and giving them opportunities to grow by getting involved. Therefore, we regularly ask for feedback in the form of employee engagement surveys, offer developmental workstreams on various topics and proactively enlist employee perspectives to continue delivery of relevant and inspiring employee initiatives. 82 % of employees participated in the engage- ment survey, showing high engagement in cul- AREA My manager gives me enough autonomy to perform my job effectively I feel part of my team tural values. Areas with the best improvements were the following: 2017 2018 68 % 80 % 76 % 79 % In 2018, we continued to gather feedback from employees via our engagement survey, specifically focusing on our culture and interpersonal relationships. 82 % of employees participated, showing high engagement in cultural values. 81 % of these consider us a responsible and trustworthy operator. 74 % would recommend Tipico as a great place to work and 73 % are proud to work for the company. Inhouse workshops were orga- nised for each department to create a set of action plans, further improving engagement of our employees and guiding the progress. One of the focus areas identified was the improvement of collaboration across the organisation. As a result of this feedback, our leadership team now communicates more frequently about its organisational strategy and group-wide progress. In Malta, an elected employee representative further guarantees that viewpoints and opinions of employees are always taken into consideration. OUR CULTURE WORKGROUPS Our culture program was first launched in 2017 with the intention of creating a new culture within the company, mirroring the feedback received from our own employees. 24 focus groups and roughly 30 interviews, adding to a total of over 250 partici- pants, gave employees from all locations a chance to express their views. By now, 50 employees from all levels are actively driving working groups of our culture program on a voluntary basis to share and explore their ideas for further improvements. Besides the culture workgroups in 2018, we expan- ded the possibilities for employee driven initiatives, emphasizing social and environmental topics. We focus on sporting activities for good causes such as charity races. Global activities such as the breast cancer awareness day and a workstream for similar topics were implemented across Tipico locations. Furthermore, location-specific CR activities com- prised charitable auctions or the CR Day in Malta. The latter was implemented in cooperation with Non-Governmental Organizations (NGOs) in order to get involved in local communities. 18

UPSKILLING COURSES PERSONAL DEVELOPMENT TOOLS DEVELOPMENT OF BUSINESS EXPERTISE Tipico employees use learning opportunities to share know- ledge, overcome challenges, progress themselves and their teams, build trust and share passions. The majority of em- ployees further receive regular performance reviews, helping them identify focus areas. With the development of tech- nical, language, people and managerial skills, Tipico ensu- res efficiency when working on projects and initiatives in a collaborative manner. Trai- ning and development initia- tives vary from one entity to the next in order to address unique cultures. Nevertheless, Tipico is constantly working on aligning opportunities across the Group to provide more uni- fied learning experiences for all employees. One of the personal develop- ment tools is the Tipico Talent Program, which was launched with the intention of enabling high-potential employees to grow further and develop their interpersonal skills, as well as expanding their understanding of the business. It supports all managers within Tipico and helps build a strong understan- ding of methods and strategies to lead and manage teams and individuals successfully. Parti- cipants use their strengths, creativity and problem-solving skills in groups to complete tasks. Throughout the program, the participants organise regular peer coaching sessions to gat- her feedback and to support and guide each other. Building a strong and aligned leadership culture within Tipi- co and bringing the company’s leadership standards to life, are goals of the Leadership De- velopment Program. During the past four years, we offered the most ambitious and inquisitive employees the op- portunity to participate in the One Tipico Xchange Program. This allows employees to tra- vel to other entities in order to increase collaboration. Partici- pants have a chance to partake in on-the-job learning, or to at- tend informative meetings with colleagues from other teams. The program is well integrated within the culture. In 2018, 36 employees applied and 16 got the chance to participate. Tipico Talks is another initiati- ve for short get-togethers with the intention of listening to volunteers who choose to pre- sent a topic of their choice. This allows employees to practice their presentation-, and public speaking skills whilst teaching the audience about current or upcoming projects or innova- tive movements. The events are open for anyone to join and learn more about the industry and about Tipico departments. Professional skills and knowledge Computing skills Language courses Soft skills Feedback tools Talent Assesment Matrix Personal Development Plan xChange Program Cross-team Exchange Tipico Talks 20

PRODUCT RESPONSIBILITY: IN SAFE HANDS WE ARE COMMITTED TO: • creating the safest gambling environment – be it online or in the shops • protecting minors and vulnerable players effectively improving the player protection concept that go- • verns our approach beyond regulatory require- ments continuously • maintaining the best international practices for responsible advertising IN 2018: • 76 % of online and 81 % of our retail customers were greatly satisfied with our products and services • 97 % of our customers can be considered mode- rate gamblers, based on behavioural monitoring • we implemented a stringent document verifica- tion: more than 500,000 documents have been checked and approved • supporting research conducted by leading • more than 2,000 tests within our retail network researchers in the field of addiction prevention • supporting counselling providers in our core markets • following the highest standards for responsible gaming (RG) as directed in the Tipico RG Policy were carried out • more than 150 RG training sessions resulting in more than 12,300 person-hours were completed • we maintained six major partnerships with focus on sports integrity • revenue from problem gamblers and minors de- creased to less than 2 % 22

Overall, our customers are very happy with our of- fers and services.4 Among online customers, 76 % are greatly satisfied with Tipico, with that number even higher in retail at 81 %. Therefore, trustwort- hiness is one of the predominant attributes as- sociated with the company. 65 % of online custo- mers and 61 % of retail customers consider us an especially trustworthy gambling operator. In 2018, only 0.96 % of all internal customer service contacts were classified as cases related to gam- bling problems. These were forwarded to a team specifically qualified in matters of player protection 76 % of online customers and 81 % of retail customers are greatly satisfied with our products and services and responsible gaming (RG). Overall, customers were pleased with the service, with 64 % of custo- mer service contacts rated as satisfying. Externally, we received 14 complaints via the MGA. All could be resolved in mutual agreement with the customer without the help of further parties. INTERNAL RESOURCES Our endeavours to provide the safest betting environment are driven strategically by the Corporate Respon- sibility department (2 Full Time Equivalent (FTE)), which reports to the chief regulatory officer (CRO). Ope- rationally, they are supported by the RG team (5 FTE) and the respective RG managers in the Tipico Shop Agencies (2 FTE). Shop controls and mystery shopping exercises are conducted by the quality team (3 FTE). HEAD OF CORPORATE RESPONSIBILTY 1 RESPONSIBLE GAMING MANAGER (TSA) RESPONSIBLE GAMING MANAGER 2 1 CORPORATE RESPONSIBILITY MANAGER 1 TEAMLEAD QUALITY AND TRAINING 1 RESPONSIBLE GAMING TEAM 4 QUALITY TEAM 2 COLLABORATION AND EXTERNAL RESOURCES External resources help us reach our RG goals. They include the TU Dresden’s “Spielerambulanz” and “Spiel- suchthilfe”, a multi-lingual online counselling provider “Gambling Therapy” (e.g. to be able to support mig- rants), as well as the association “Glücksfall e.V.”. We are working together with leading German research institutions, the Chair of Addiction Research at the TU Dresden, and the University of Lucerne, with the goal of continually improving player protection. Our approach, however, does not end with our online offers and our own shops. All franchisees of Tipico are required to adhere to the same high standards. 4Tipico Brand Tracking Germany Wave 5 - November/December 2018 24

ADULTS ONLY: WE PROTECT MINORS Both online and in our retail stores, we prohibit minors from participating in any gambling activities. Our product targets adults who participate in sports betting as entertainment only. Responsibility is taken very seriously and identity and age checks (online as well as in our shops) are carried out. All online accounts, as well as Tipico customer cards for the retail business, rely on age and identity verification based on database checks (e.g. Schufa) and checks of ID documents. The focus on the protection of minors also applies to our marketing. As part of Tipico’s advertising policy, we avoid any advertising that could have a specific appeal to people under the age of 18. In 2018: ONLINE: RETAIL: • we conducted more than 130,000 ID verifi- cations due to our strict regulations, 2,220 minors were caught, trying to access the product offer, and expelled accordingly • we conducted more than 380,000 ID verifi- cations • 70,000 additional age checks were conduc- ted with customers entering the premises • 10,758 minors were caught, trying to access premises, and expelled accordingly 26

FINANCIAL IMPACT OF PROBLEM GAMBLERS AND MINORS A consistent approach towards the protection of minors and vulnerable players is only possible if we ma- nage to minimize any dependencies on revenues derived out of these problem areas. Therefore, we track turnover that had been generated by potential problem gamblers before they were detected and excluded from our offers. FINANCIAL IMPACT OF PROBLEM GAMBLERS IN PERCENTAGES 4,50 % 3,00 % 1,50 % 0,00 % 2017 2018 In 2018, we were able to reduce the contribution of problem gamblers to our turnover dramatically. This is due to improvements to the RG functiona- lities on our platform and the introduction of al- gorithms for early detection of potential problem gamblers. This allows us to identify risk behaviours early and assign adequate protective measures to those players. As a basis to help customers make responsible de- cisions, we provide comprehensive information on relevant topics such as game information, probabi- lity of winning and risk awareness on the compa- ny’s own RG website. More than 25,000 people vi- sited the page in 2018, 65 % from German speaking countries. Thereby simplicity is key in order to reach all customers. In 2018, 73 % of customers rated our player protection materials as easy to understand. Additionally, thanks to the transparent account overview, our customers can view all relevant information on their bets as well as incoming and outgoing payments at any time. LIMITS OFFERED As part of our prevention methods, we offer the possibility to set limits. Limits are an agreement between a customer and us to restrict their gambling involvement (time and money) to a certain budget. They are binding and all bets that would exceed these limits are rejected. The increase or revocation of limits is only possible after a mandatory waiting period of seven days, whereas a reduction of a limit to a more restrictive level is processed with immediate effect. In 2018 we offered possibilities to set the following limits: • payment limits • loss limit • time limit • • limits for the gaming offer 7 % OF ACTIVE limits for maximum betting amounts CUSTOMERS HAVE SET LIMITS 28

In case risk behaviours are noticed, RG messages are sent to give the customer feedback: • Level 1 - Increased RG information • Level 2 - Interrupting the flow of gambling with RG messages • Level 3 - Investigation by the RG team If risk behaviour persists, the customer is confronted and a dialogue is initiated. As part of this dialogue, mitigating measures (limits, breaks, exclusions,) are agreed upon with the customer. If no agreement is reached, we impose adequate mitigations for the protection of the customer (e.g. imposed limits or imposed exclusion). RG TRAINING In order to implement a stringent player protection strategy, knowled- ge and awareness among employees is crucial. Therefore, our emp- loyees are trained in RG topics. In 2018 we implemented: • 30 RG training sessions for around 350 back-office employees • 127 extensive RG workshops for shop employees (> 12,000 hours) • 95 % of customer-facing employees for the online services completed advanced RG trainings MONITORING AND QUALITY CONTROL Online, all player protection functionalities are largely scalable. Once evaluated for their effectiveness, we rely on them to remain effective at least in the short and medium term. This differs in the retail offer, where the protection of the customers hinges on the ability and compliance of each single employee. Therefore, constant supervision is necessary. Our internal quality team is constantly travelling from shop to shop to foster strict adherence to regulatory requirements and internal policies. In addition to that, we work with external contractors to conduct myste- ry shopping exercises. In 2018, we conducted in the Retail network: • 870 quality audits • 300 mystery shopping visits on minor protection conducted by Tipico quality team • 900 mystery shopping visits on minor protection, player protection and Anti Money Laundering (AML) conducted by external partners. TARGETS 2019 • further reduce the financial impact of problem gambling • apply innovations piloted in the online business to retail • further strengthen quality controls and mystery shopping 30

GOVERNANCE: VITAL TO ACCOUNTABILITY Long term success can only be generated by re- specting business integrity and focusing on compli- ance and business ethics. Therefore, these issues are the basis for all our undertakings and known and respected by all employees. We have flat hierarchies and consequently the ma- nagement should not and does not strive to micro- manage every single decision. Rather, our company builds on the competencies of all employees and therefore delegates authority for many business processes. That way, we achieve the greatest pos- sible operational ability to act and ensure that the management can focus on the most important decisions. By using the expertise on all levels, the company can progressively and quickly adapt to a market in which change is the only constant. The- refore, we established a Delegation of Authority, which governs responsibilities and allowances. THREE LINES OF DEFENCE At Tipico, the first line of defence is provided by staff and operational management. They have ownership, responsibility and accountability for directly evaluating, controlling and mitigating risks. Internal governance is further supported by departments with controlling functions such as Compliance. These departments have a risk minimizing role, in which they support the identification of risks and the implementation of ef- fective risk management tools. Our Group Internal Audit and Risk Management team takes responsibility for the third line of defence. BOARD SENIOR MANAGEMENT 1ST LINE OF DEFENCE 2ND LINE OF DEFENCE 3RD LINE OF DEFENCE MANAGEMENT CONTROLS INTERNAL CONTROL MEASURES GROUP INTERNAL AUDIT AND RISK MANAGEMENT FINANCIAL CONTROLS SECURITY QUALITY COMPLIANCE LEGAL E X T E R N A L A U D I T R E G U L A T O R GROUP INTERNAL AUDIT & RISK MANAGEMENT In order to provide recommendations and to en- hance internal controls, an Internal Audit & Risk Department has been established. Objectively independent and not involved in operational de- cisions are main principles of our internal audit and risk management team. These principles are fundamental to transparent processes. It therefo- re provides independent oversight on the efficien- cy and effectiveness of governance and internal controls. The team further supports the company on achieving the strategic objectives and sustai- nable long-term growth by assisting management in identifying and actively managing their existing and emerging key risks. 32

BUSINESS ETHICS: OUR ETHICS CODE SER- VES AS A FOUNDATION FOR OUR APPROACH A core principle is that all members of the Tipico Group act with integrity and thereby positively ref- lect our values. Our Tipico Ethics Code intends to provide guidance to all employees with respect to their responsibilities at the company, with the par- ticular target of creating awareness about anti-cor- ruption and anti-bribery laws in order to enable all employees to recognize potential issues and deal with them appropriately. We do not tolerate any form of corruption. Therefo- re, we actively work with stakeholders to avoid any situations that could be construed as such. Emp- loyees and consultants are not allowed to use their position at Tipico to request or accept anything of value or the promise thereof beyond the scope of moderate and appropriate gifts. Every employee receiving gifts and hospitality exceeding the value of cumulatively 150 € within a year is required to declare all these to the central register of the com- pliance department. Same applies to conflicts of interest. All potenti- al cases must be reported in order to allow for a transparent discussion of the involved risks and for GRI DESCRIPTION an appropriate solution for the employee and Tipi- co. To avoid conflicts of interest, any direct or indi- rect use of own gaming and betting offers - except on designated employee accounts - is forbidden for all our employees. Further, company facilities may only be used in a manner that suits our values. For the same reason we do not make any financial con- tributions to politicians, political organisations or political parties. To foster ethical business behaviour, we practi- se the approach that every employee should re- port any perceived concerns, risks, or misconduct without having to fear sanctions. As part of our Whistleblowing Policy, we have therefore instituted an external, independent ombudsman as a con- tact for whistle-blowers. In 2018, four reports were registered across the Tipico Group via the whistle- blower system of which one could be substantia- ted. However, our ethical business practices were not only visible internally. In 2018, we did not receive any significant fines or non-monetary sanctions for non-compliance as described in the following GRI requirements: GRI 206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices GRI 416-2 Incidents of non-compliance concerning the health & safety Impact of products & services GRI 419-1 Non-compliance with laws and regulations in the social and economic area GRI 417-2 Incidents of non-compliance concerning product and service information and labelling GRI 417-3 Incidents of non-compliance concerning marketing communications GRI 307-1 Non-compliance with environmental laws and regulations 34

PREVENTION OF MONEY LAUNDERING (AML) In recent years, the topic of money laundering has gained increasing attention. As a sportsbook provider, we are confronted daily with monetary transactions by customers. This is associated with a special respon- sibility. In 2018, our internal AML organisation was strengthened, and teams expanded in order to drive AML compliance. Thus, the following target model was designed with 22.85 Full-Time Equivalents (FTE) in total working to actively prevent money laundering. HEAD OF AML MLRO 1 MLRO* TSA B, E & S 3 SENIOR RETAIL SERVICE MANAGER 1 AML COMPLIANCE MANAGER DMLRO 1 AML AND KYC MANAGER 1 SENIOR ANALYST TSL 0.35 RETAIL RISK ANALYSTS & SPECIALIST 3 + 1 AML AND KYC TEAM 2 KYC VERIFICATIONS TEAM 5.5 CONTRACTORS 2+2 Relevant parts of the retail operations are further monitored on a daily basis by an external partner, the Kerberos Compliance-Managementsysteme GmbH, a regulatory compliance tech company with strong ex- pertise in the field of money laundering prevention. Our entire Group follows an AML policy, which creates awareness and explains what to do in case of suspici- on of criminal activities. Our Tipico Group Money Laundering Reporting Officer (MLRO) further designed an appropriate process for action, which must be followed by employees. In 2018, 748 AML trainings were carried out (covering 99 % of employees in core business entities), supplemented by further trainings for retail shops. Furthermore, the AML frame- work was constructed, implemented and au- dited successfully. An external auditor asses- sed the suitability of its relevant parts. AML TRAININGS IN CORE BUSINESS ENTITIES 800 700 600 500 400 300 200 100 0 2016 2017 2018 36

OUR COMMUNITIES: BEYOND BUSINESS OPERATIONS WE ARE COMMITTED TO: • expressing our values by charitable giving and corporate projects • supporting active involvement in the communi- ties through volunteering initiatives • supporting employee driven activities • focussing on close cooperation with selected partners to guarantee long term success IN 2018: • we extended our corporate social responsibility (CSR) activities across locations and carried out various events for a good cause • more than 1,000 hours of community work were carried out by employees in Malta • 15 options for participation in sportive activities for the good cause were offered across locations • more than 260,000 € were donated in the field of healthcare, prevention research and social de- velopment 38

As customer health and safety is of the highest priority to us, in 2018, more than 120,000 € was donated wit- hin main markets in Germany and Austria for player counselling programs, as well as around 100,000 € for research purposes to prevent gambling addiction. In addition, we donated more than 40,000 € in charitable projects within Malta. SPORTS FOR THE GOOD CAUSE AUCTIONS FOR THE GOOD CAUSE We are not only a partner of the German Foot- ball Bundesliga and FC Bayern Munich; our pas- sion shines through in the voluntary work and responsible actions within society. That is why, beyond its sponsoring commitments, Tipico also fosters sports events and charity cam- paigns of its partner associations, non-profit organisations, and sports foundations. In 2018 these included: Whether auctions of unique sports parapherna- lia such as jerseys or scarves, or balls signed by football stars – the proceeds from these events always benefit charitable projects in the area of sports and health. In 2018, Tipico collaborated with the following partners: Charity Walks & Runs -Germany Medellin Marathon, Colombia Sport auction Tipico MCCF Run, Malta Own Sportsday with donations for the good cause, Malta United Charity (start of collaboration) Sporthilfe Austria Internal auctions Schlossparklauf Karlsruhe, Germany For each Tipico employee participating in a charity race, 30 € were donated. “The feedback from colleagues was great! We are pleased that so many people took part in the auction. All in all, we were able to provide Inspire Malta with over 1,700 €.” Senior Manager Corporate IT, about the support of his colleagues. 40

OUR ENVIRONMENTAL IMPACT: LESS IS MORE WE ARE COMMITTED TO: • measuring our environmental performance by IN 2018: • we collected information on environmental use of Global Reporting Initiative standards Impact • evaluating environmental Impact of facilities and operations with a focus on implementing a continuous improvement process • using natural resources efficiently to minimize • we reduced our emissions by moving to more efficient data centres • we started and reached first milestones in the workstream focussing on environmental issues waste • using innovations and technologies to minimize atmospheric emissions • promoting awareness regarding environmental guidelines for employees and the public 42

For comparison reasons, the amount of CO2e is cal- culated with the standards of the Greenhouse Gas Protocol (GHG), which implies country specific ener- gy mixes. In order to minimize Impact, we are strong- ly committed towards using renewable sourced electricity to attain a more favourable energy mix. While the average of renewable sourced electricity in the gross electricity mix within the EU (2016) was around 30 %, the majority of Tipico business entities sources electricity from providers offering 100 % re- newable sources. Therefore, the CO2e based on our specific electricity mix is expected to be below cal- culated amounts. The same applies to our retail shops. Majority of shops operated by the Tipico Shop Agency North and East are sourcing electricity from 100 % renewable sources. Based on supplier information, this leads to the reduction of more than 1,000 tonnes CO2 emissi- ons compared to conventional electricity mixes. DATA CENTRES In 2018, the energy consumption by external data centres that could be traced back to our usage was tracked for the first time. We managed to receive information from around 75 % of data centres that are handling our operations. Yet, as the picture is not complete, we will work on improving data com- pleteness before publishing final results. Another big step was moving our data servers to the Amazon Cloud (AWS). This led to a high level of scalability. In a framework of dedicated servers for our digital services, the number of servers must be adjusted to the highest demand (e.g. around big sports events). During times of lower demand, unused servers become redundant, while still running. With the move towards AWS, capacity is dynamically scaled to the actual workload. Con- ELECTRICITYMIX OF TIPICO RETAIL SHOPS IN PERCENTAGES 100 80 60 40 20 0 Renewable Electricity Other sequently, energy consumption is expected to be much lower at times of reduced demand. As the amount of carbon emissions is not only af- fected by the sheer number of servers running, and the efficiency of theses servers, but also by the po- wer mix used, we chose a provider that follows own requirements on high percentages of renewable energies in the electricity mix. In accordance with AWS statements, the provider used on average 50 % of renewable energies. AWS states that “On average, AWS customers use 77 % fewer servers, 84 % less power, and utilize a 28 % cleaner power mix, for a total reduction in carbon emissions of 88 % from using the AWS Cloud instead of opera- ting their own data centers. WATER Our main focus does not lie on the manufacturing industry. Thus, the water consumption of the company is comparably low. As we are renting the office spaces, data availability depends on the landlords and the re- gulatory environments. Therefore, not all data for 2018 could be collected at this time. Nevertheless, tracking for consumption by all entities is set up and data is recorded in order to notify irregularities. Water is usually sourced by local municipalities and except for one entity, no reused or recycled water is used in our facilities. 6 Statista (2019) Retrieved from: https://de.statista.com/statistik/daten/studie/161266/umfrage/stromerzeugung-aus-erneuerbaren-energien-in-der-eu-27-seit-1998/ 7 AWS (2015) Retrieved from: https://aws.amazon.com/blogs/aws/cloud-computing-server-utilization-the-environment/ 44

BUSINESS TRAVEL: REDUCING OUR FOOT- PRINT As an international company, business travel is one of our biggest environmental Impact. Our business travel includes the car parks used by the teams consulting retail shops (GHG Protocol Sco- pe 1) and emissions as a result of individual travel of employees by publicly available sources such as taxis, trains and airplanes (GHG Protocol Scope 3). Information about all business-related trips of our Group were collected and resulted in 733.849 metric tonnes of CO2 equivalent and 65.097 metric tonnes emissions from biofuel. This equals an emis- sion intensity of 1.189 metric tonnes per employee in core business entities . GHG EMISSIONS - ROAD IN METRIC TONNES CO2E 200 150 100 50 0 169 102 83 Cab 16 Retail Services (Austria) Retail Services (Germany) Shop Agency North ROAD Travel by road makes up a large part of our overall business travel. This is especially due to the high number of Tipico shops within Germany and Aus- tria, which are inspected and consulted by internal quality and retail services teams on a regular basis. 8 Statista (2019) Retrieved from: https://de.statista.com/statistik/daten/studie/901192/umfrage/recyclingquote-von-kunststoffverpackungen-in-eu-laendern/ 9 Statista (2018) Retrieved from: https://de.statista.com/statistik/daten/studie/786353/umfrage/plastikverpackungsabfall-in-ausgewaehlten-eu-laendern-je-einwohner/ 46 Road45%Rail6%Aircraft49%RoadRailAircraft

RAIL In accordance with the GHG protocol, around 6 % of our emissions, equalling around 47 metric tonnes of CO2e, result from rail traffic. Yet, the majority of travel by train was carried out in Germany, with a high share of renewable energy in the power mix. Thus, emission factors are expected to be below calculated numbers. In accordance with the Ger- man Federal Environmental Agency “Umweltbun- desamt”, the emissions by rail based on our indivi- dual rail mix are expected to be only approximately 15 metric tonnes. Around 1,600 long distance travels by train With an average distance of around 262 kilometres REDUCING IMPACT Communication is key. Therefore, business travel is relevant in order to work together closely and get the best results possible. Nevertheless, wherever achievable, we are counting on alternative systems in order to minimize consumption of time and CO2e. Thus, we are offering our employees various chan- nels for communication. As shown in the table, vir- tual online meetings are used very frequently. More than 7,227 meetings were scheduled via virtual meeting rooms Up to 47 meetings per day With up to 59 dialled in computers/conference rooms On average 6.8 dialled in computers/conference rooms (higher number of individual participants) TARGETS 2019: • extend tracking of data about environmental Impact • • • produce a stable high share of renewable electricity in the electricity mix • extend benchmarking on environmental effects increase data accuracy concerning business travel by implementing a new tracking system increase awareness of environmental Impact with the company 11Umweltbundesamt (2018) Retrieved from: https://www.umweltbundesamt.de/themen/verkehr-laerm/emissionsdaten#verkehrsmittelvergleich_personenverkehr 48

OUR SUPPLY As an international company, we are interacting with people, companies and organizations outside the Ti- pico Group in all business areas. Our supply chain is less affected by direct procurements such as raw ma- terials and goods for production but rather shaped by indirect spendings on services, supporting the day to day business such as marketing, gaming, IT and affiliation services. Nevertheless, safe collaborations with suppliers following the same high standards as Tipico are important in order to guarantee the efficient flow of the business. We therefore expect suppliers to acknowledge our Supplier Code of Conduct, which is based on the standards of the UN Global values and thereby promotes ethical, social, environmental and economic progress. THE SELECTION PROCESS Whether it’s customers, partners, franchise part- ners, or suppliers - we are implementing guidelines and checks to guarantee safe relationships. These do not only include customer identity verification processes, but also due diligence on the franchise partners and vendors. Even charitable organizati- ons are asked for transparent information to gua- rantee that trust is never misused. “Know your busi- ness partners” processes and procedures reduce the risk in facilitating business with inappropriate business partners, especially from an anti-money laundering perspective. By verifying our partners and understanding their business, we increase our ability to pinpoint any potential risks. As a first ap- proach to supplier verification, a risk assessment is completed. This includes specific parameters such as jurisdiction, type of service, number of emp- loyees or monetary value of contracts, to name a few. Based on the risk assessment results, specific due diligence checks are carried out. As a part of these checks, we screen individuals and organiza- tions through an established compliance checking engine such as World Check by Thomson Reuters, which makes it possible to immediately identify suspicious results and take relevant actions. En- hanced due diligence (EDD) is subsequently trigge- red in case any suspicious result is met during the checks, always in accordance and agreed with the Money Laundering Officer (MLRO). We further implemented a contract signing process policy to ensure a structured, efficient and trans- parent process for contract signing requests. The target is to ensure that through a structured work- flow, every contract, order, commercial and service acquired, which passes through these stages, is appropriately reviewed, documented and correctly allocated to the applicable business unit. The poli- cy therefore describes the main rules and measu- res to fulfil the requirements for a contract to be signed. This includes legal, tax, finance, AML, data protection and compliance checks or requests of additional information. As for areas dealing with personal information, we follow a strict procurement data retention policy targeting all Group employees that are collecting and processing personal data of affiliates, vendors and suppliers. 50

PROTECTION OF HUMAN RIGHTS We have a zero-tolerance approach towards all forms of modern slavery and therefore expect all our sup- pliers to follow the same approach. Slavery, forced- and child labour and human trafficking are violations of fundamental human rights by exploiting persons for the benefit of others. Yet, in 2016, still around 300 mil- lion workers worldwide lived in extreme poverty while millions of children, men and women are still victims of modern slavery and insufficient working conditions, which lead to major work-related health issues. Even though migration policies have been tightened within Europe, rendering migrants and vulnerable groups to higher risks, central European countries have comparatively low risks of modern slavery. Governments in Europe show great determination to minimize human rights violations. Thus, focussing on suppliers from European countries is a first step towards reducing these risks. All employees are further encouraged to report suspicions on any form of crime. TARGETS 2019: • upgrade of procurement function • extend centralised process for supply management and contract signing • monitoring and control over expenses increase transparency of contract obligations and spending, which increases efficiency and 52

APPENDIX APPENDIX 1: BACKGROUND ON SUSTAINA- BILITY REPORTING Content and Scope We are proud to present the first nonfinancial re- port for the Tipico Group covering the reporting year 2018. The report is published as a stand-alone report and will be renewed on an annual base. The report focuses on topics impacting Tipico stake- holders to the greatest extent. The goal is to trans- parently address these topics and outline a path to continuous progress, assuring the trust of all stake- holders. The standards of the Global Reporting Initiative (GRI) were used as the framework for structuring the content of the report. Tipico systematically used the GRI standards to conduct a former mate- riality analysis, in order to define the key reporting aspects and guide further standard disclosures. The report additionally includes the GRI content index. As Tipico is committed to the ten principles of the UN Global Compact, communication on the four main areas, namely Human Rights, Labor, En- vironment and Corruption Prevention, will be in- cluded in this report. Any further progress will be disclosed in the future. The reporting of CO2-emissions is influenced by the Corporate Value Chain (Scope 3) Accounting and Reporting Standard by the World Resource Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) as well as by the Greenhouse Gas (GHG) Protocol. Emissions by electricity consumption are calculated with the use of the GHG Protocol tool for stationary combus- tion. Emissions resulting from business travel are calculated with the GHG Protocol tool for mobile combustion. Financial statements are published annually in a separate report. The consolidated financial state- ments include information about the Tipico Group Limited and its subsidiaries. The statements are prepared in accordance with International Finan- cial Reporting Standards as adopted by the EU. Financial statements are further independently au- dited and confirmed by the PWC. We strive for transparency. However, due to the he- terogeneity of different entities and the introduc- tion of new tracking systems, not all information could be collected in this first report. Therefore, chapters contain information about the scope and covered Group entities. 54

GRI 102-45 GRI 102-46 Entities included in the consolidated financial statements Defining report content and topic Boundaries GRI 102-47 List of material topics GRI 102-48 Restatements of information GRI 102-49 Changes in reporting GRI 102-50 Reporting period GRI 102-51 Date of most recent report GRI 102-52 Reporting cycle GRI 102-53 Contact point for questions regarding the report GRI 102-54 Claims of reporting in accordance with the GRI Standards GRI 102-55 GRI 102-56 GRI 103-1 GRI 103-2 GRI 103-3 GRI 202-1 GRI 202-2 GRI 203-1 GRI 203-2 GRI 204-1 GRI 205-1 GRI 205-2 GRI 205-3 GRI 206-1 GRI 301-2 GRI 302-1 GRI 302-2 GRI 302-3 GRI 302-4 GRI 302-5 GRI 303-1 GRI 303-2 GRI 303-3 GRI 305-1 GRI 305-2 GRI 305-3 GRI 305-4 GRI 305-5 GRI 307-1 GRI content index External assurance Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach Ratios of standard entry level wage by gender compared to local minimum wage Proportion of senior management hired from the local community Infrastructure investments and services supported Significant indirect economic Impact Proportion of spending on local suppliers Operations assessed for risks related to corruption Communication and training about anti-corruption policies and procedures Confirmed incidents of corruption and actions taken Legal actions for anti-competitive behavior, anti-trust, and monopoly practices Recycled input materials used Energy consumption within the organization Energy consumption outside of the organization Energy intensity Reduction of energy consumption Reductions in energy requirements of products and services. Water withdrawal by source Water sources significantly affected by withdrawal of water Water recycled and reused Direct (Scope 1) GHG emissions Energy indirect (Scope 2) GHG emissions (for example sourced energy) Other indirect (Scope 3) GHG emissions GHG emissions intensity Reduction of GHG emissions Non-compliance with environmental laws and regulations See financial report 10 10 Not Applicable due to first report Not Applicable due to first report 54 62 54 62 As it is the first report, not all information are available 55 10 Topic specific Topic specific 17 14 38 ff. 38 ff. 51 34 34 34 34 34 45 43; 44 43; 44 43 48 44 44 44 44 43 43 43 46 44; 48 34 56

GRI 417-3 GRI 418-1 Incidents of non-compliance concerning marketing communications Substantiated complaints concerning breaches of customer privacy and losses of customer data GRI 419-1 Further Mate- rial Topic: Non-compliance with laws and regulations in the social and economic area Consumer Protection was defined as a material topic. Therefore, it is covered in this report, even though no specific GRI requirement exists 34 35 34 22 ff. 58

ÖSTERREICHISCHER SPORTWETTENVERBAND (OSWV) (member since 2016; board Member since 2018) The Austrian Bookmakers Association (OSWV) aims to safeguard the professional interests of bookma- kers and totalizers in accordance with its statutes. Additionally, the association creates the basis for its members to be able to carry out their activities in a secure, legal and economic environment. The OBMV does not pursue its own economic inter- ests; it is politically and denominationally neutral. WIRTSCHAFTSRAT CDU (member since 2008) The economic council of the Christian Democra- tic Union (CDU) registered association is a country wide organized entrepreneurial professional as- sociation with approximately 12,000 members. It offers its members a platform to shape economic and social policy in the sense of Ludwig Erhard‘s so- cial market economy. The economic council repre- sents the interests of the entrepreneurial economy vis-à-vis politics, administration and the public. IGAMING EXECUTIVES NETWORK ASSOCIATION (IGEN) (board member since 2018) The iGaming Executives Network Association (iGEN) is an association of Malta’s leading iGaming companies operating in the European and inter- national markets, which was set up in 2018. The main issues addressed are specific to the iGaming industry, such as staff shortages with specific com- petences as well as problems in the banking sec- tor. General country specific challenges are further addressed. For instance, Malta’s rental prices have gone up dramatically in recent years. These topics will be addressed in further collaboration with the Maltese government and the public sector, as well as other stakeholders such as Gaming Malta, the Bankers’ Association, the Real Estate Association and other key organisations in this field. THE MALTA CHAMBER OF COMMERCE (member since 2017) The Malta Chamber of Commerce, Enterprise and In- dustry is the independent voice of the private sector in Malta. Its principal mission is to actively represent companies from all economic sectors and ensure that entrepreneurs enjoy the best competitive envi- ronment and regulatory conditions possible for the conduct of business. The Chamber constantly champions the need for competitiveness, enhancing measures with the per- tinent authorities in Malta as well as in Brussels. UN GLOBAL COMPACT (participant since 2018) The United Nations Global Compact is a non-binding initiative with the goal of encouraging businesses to work together towards reaching sustainable and responsible business practices. It thereby acts as the world’s largest corporate sustainabi- lity initiative. The UN Global Compact enables companies to align strategies and operations with universal principles of human rights, labour, envi- ronment and anti-corruption, and takes actions in these areas. Businesses are asked to report on their progress in these areas on a regular basis. 60

IMPRINT AND CONTACT OWNER AND PUBLISHER: Tipico Group Limited Portomaso Business Tower St. Julian’s STJ 4011 Malta Web: www.Tipico-Group.com Tipico Group Limited is a limited liability company under Maltese law Registration number: C75334 from the Malta Financial Services Authority (MFSA) All information in this report is prepared with the utmost care and help of various individuals from Tipico and its partners. Information is rechecked and presented to the best of our knowledge. Nevertheless, we cannot assume liability for the correctness and the completeness of all information. For better readability, numbers used in this report are rounded and might therefore differ slightly. This report includes forward-looking statements based on current information. These do not solely rely on historical facts but on expectations and plans for the future. Unexpected circumstances might there- fore lead to deviations from these expectations. For this reason, forward-looking statements speak only as of the date they are made. Even though expectations might change in the light of new information or altered circumstances, Tipico undertakes no obligation to update any of these statements publicly. The corporate responsibility team would be pleased to receive feedback or suggestions. Please contact: Luisa Schuemann corporate.responsibility@tipico.com Publication date: 22.10.2019 CONCEPTIONAL SUPPORT, DESIGN AND REALIZATION: Blao GmbH & Co. KG Vogelsanger Straße 348 50827 Cologne E-Mail: info@blao-content-studios.com Die Thronverfolger Marienstraße 10 49074 Osnabrück E-Mail: info@thronverfolger.de PHOTOS: Tipico Group Page 31: Image Copyright cunaplus, 2019. Used under license from Shutterstock.com Page 22: Image Copyright wavebreakmedia, 2019. Used under license from Shutterstock.com Page 52: Image Copyright imago images / ActionPictures This report is protected by copyright. All rights reserved. Reproduction of any kind, whether reprinting, photocopy, microfilm, or recording in data processing systems, only with the permission of Tipico Co. Ltd. 62