Corporate News

NOT FOR DISTRIBUTION, PUBLICATION OR TRANSMISSION, DIRECTLY OR INDIRECTLY, INTO OR IN THE UNITED STATES OF AMERICA, AUSTRALIA, JAPAN, CANADA, OR ANY OTHER COUNTRY IN WHICH SUCH DISTRIBUTION OR PUBLICATION MAY BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.

DEAG: Subscription period for the Corporate Bond 2023/2026 starts today

• Subscription period expected to end on 27 June 2023 (12:00 CET)
• Fixed interest rate between 7.50% – 8.50% p.a. for a term of three years
• Minimum subscription EUR 1,000
• Subscriptions can be placed via “Direct Place” of Deutsche Börse AG
• Use of proceeds: refinancing of the DEAG Bond 2018/2023 and financing of further growth

Berlin, 19 June 2023 – As of today, investors can acquire “music for their account” and subscribe to the new Corporate Bond 2023/2026 (ISIN NO0012487596) issued by DEAG Deutsche Entertainment Aktiengesellschaft (“DEAG”) as part of a public offering in Germany and Luxembourg. The bond is subject to Norwegian law, has an issue volume of up to EUR 50 million and a maturity of three years, until 12 July 2026. The bond carries a fixed interest rate between 7.50% and 8.50% p.a. The final interest rate is expected to be determined by 27 June 2023 by way of a book building process. The subscription period is expected to run until 27 June 2023 (12:00 CET), subject to early closing. Repayment will be made at maturity in the nominal amount of EUR 1,000 per bond. The exchange and over-allotment offer to creditors of the DEAG 2018/2023 Bond, in which they will also receive a cash settlement of EUR 15 and accrued interest, is expected to run until 23 June 2023.

The DEAG Bond 2023/2026 can be subscribed to from a nominal amount of EUR 1,000 or a multiple thereof. Investors can place subscription orders via their custodian bank or broker using the “Direct Place” subscription functionality of Deutsche Börse AG. The issue amount is 100% of the nominal amount. In addition to the public offering, the bond will be offered in a private placement to institutional investors in Germany and Luxembourg as well as in selected European and other countries. The inclusion of the bond in stock exchange trading on the Open Market of Deutsche Börse AG is scheduled for 12 July 2023. However, DEAG reserves the right to enable trading in the bonds by appearance already prior to 12 July 2023. In addition, inclusion in the Nordic ABM, a self-regulated marketplace organised and operated by the Oslo Stock Exchange, must be applied for within six months after the issue of the bond.

DEAG intends to use the proceeds from the bond issue to refinance the 2018/2023 Bond and to continue its strategy of inorganic and organic growth, including by acquiring majority stakes in companies in the live entertainment industry. DEAG plans to further intensify its M&A activities in the second half of 2023. One focus will be on the ticketing sector and expansion into new European markets. Additional acquisitions are currently in the pipeline.

DEAG is on a dynamic growth path and was able to increase its revenue by more than half to EUR 48 million in the first quarter of 2023. EBITDA was EUR 3.1 million. This represents a near doubling of its operating earnings power, as the previous year’s figure of EUR 2.8 million still included significant funds from subsidy programmes. DEAG considers itself very well prepared for the further positive development of its business. In the months ahead, the company will be organising tours and concerts with Iron Maiden, Kiss and Rod Stewart, among other artists, as well as many open-air festivals of various genres. DEAG expects revenues of over EUR 300 million in 2023 with a further improvement in EBITDA. In 2023 as a whole, the company plans to sell more than 10 million tickets to around 6,000 events, the majority of which will be sold via the Group’s own ticketing platforms myticket.de, myticket.at, myticket.co.uk, gigantic.com and tickets.ie. As early as 2022, DEAG managed to massively increase the number of tickets sold to more than 9 million, after selling more than 5 million tickets per year before the corona pandemic.

The issuance of the Bond is arranged by IKB Deutsche Industriebank AG and Pareto Securities AS, Frankfurt Branch, as Joint Lead Managers.

The securities prospectus relevant for the public offering is available on DEAG’s Investor Relations website (Investor Relations – DEAG Entertainment) and on the website of the Luxembourg Stock Exchange (www.luxse.com).

About DEAG

DEAG Deutsche Entertainment Aktiengesellschaft (DEAG), a leading entertainment service company and live entertainment provider, produces and promotes live events of all genres and sizes in Europe. With its group companies, DEAG has been present at 20 locations in its core markets of Germany, Great Britain, Switzerland, Ireland and Denmark. As a live entertainment service provider with an integrated business model, DEAG has extensive expertise in the conception, organisation, promotion and production of events.

Founded in Berlin in 1978, DEAG's core business areas today include Rock/Pop, Classics & Jazz, Family Entertainment, Spoken Word & Literary Events, Arts+Exhibitions and Ticketing. Live Entertainment for all generations including Arts+Exhibitions are important building blocks for the further development of DEAG's own content.

For around 6,000 events, over 10 million tickets are sold annually for own and third-party content - a continuously growing share of these is sold via the group's own e-commerce platforms myticket.de, myticket.at, myticket.co.uk, gigantic.com and tickets.ie.

DEAG is thus excellently positioned for further growth.

Investor & Public Relations
Axel Mühlhaus, edicto GmbH
Eschersheimer Landstraße 42
60322 Frankfurt am Main
Germany
Phone: +49 69 905505-52
E-Mail: deag@edicto.de

Important Notice

This announcement may not be published, distributed or transmitted in the United States of America, Canada, Australia or Japan. This announcement is not an offer to sell or a solicitation of any offer to buy any securities (the “securities”) of DEAG Deutsche Entertainment Aktiengesellschaft in the United States of America, Australia, Canada, Japan or in any other jurisdiction where such offer or sale would be unlawful. The public offering of securities will be made exclusively on the basis of a securities prospectus ("Prospectus") approved by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) on June 6, 2023 and notified to the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin). The prospectus is available free of charge on the Company's website at http://www.deag.de.

In the Member States of the European Economic Area other than Germany and Luxembourg, this publication is only addressed to persons who are "qualified investors" as defined in Article 2(e) of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market ("Prospectus Regulation").

The securities of the Company may not be offered or sold in the United States of America absent registration or an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Company's securities have not been and will not be registered under the Securities Act. There will be no public offering of the securities referred to in this communication in the United States of America. The securities referred to in this release may not be offered or sold in Australia, Canada or Japan, or to, or for the account or benefit of, residents of Australia, Canada or Japan, subject to certain exceptions.

This publication may only be distributed in the United Kingdom to persons or is directed only at persons who are "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation as that Regulation forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 and who are also (i) professional investors within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended from time to time (the "Order") or (ii) are high net worth entities within the meaning of section 49(2)(a) to (d) of the Order or other persons to whom the information may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). The new securities are available only to relevant persons and any invitation, offer or agreement to subscribe, purchase or otherwise acquire securities will be made only to relevant persons. Any person who is not a relevant person must not act or rely on these documents or their contents.

This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the Company's management. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Due to various factors, actual future results, developments and events could differ materially from those described in such statements. Neither the Company nor any other person assumes any responsibility whatsoever for the accuracy of the opinions contained in this document or the underlying assumptions. The Company assumes no obligation to update the statements contained in this release.

ADVERTISEMENT – Prospectus available under http://www.deag.de. The approval of the Prospectus by the Commission de Surveillance du Secteur Financier (CSSF) should not be understood as an endorsement of the securities offered. An investment decision regarding the publicly offered securities should only be made on the basis of the Prospectus. Potential investors are advised to read the Prospectus before making an investment decision in order to fully understand the potential risks and rewards associated with the decision to invest in the Securities.