DADA : Press Release Results 1H 2017

Press release pursuant to CONSOB Regulation 11971/1999, as subsequently amended

1H17 CONSOLIDATED RESULTS APPROVED: HIGHEST REVENUE IN PAST 4 YEARS AND BEST EBITDA IN PAST 7 YEARS ON 1H BASIS ALL KEY BUSINESS METRICS CONTINUE TO GROW STRONGLY ACROSS EUROPE

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REVENUE AT €35.0 MN, UP BY +7%1 YoY

(€32.8 MN IN 1H16)

EBITDA2 INCREASES TO €6.6 MN, UP BY 11% WITH MARGIN ON REVENUE REACHING 19%

(€5.9 MN AND 18% IN 1H16)

EBIT UP BY 29% TO €3.3 MN, ACCOUNTING FOR 10% (€2.6 MN AND 8% IN 1H16) NET PROFIT OF €1.3 MN

(€0.4 MN IN 1H16)

NET FINANCIAL POSITION IMPROVES TO -€26.1 MN

(FROM -€29.5 MN AT 31/12/2016)

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CUSTOMER BASE UP BY 8% VS 1H16 92 THOUSAND NEW CUSTOMERS ACQUIRED (+7%) GROWING CONTRIBUTION OF VOLUMES FROM RENEWAL MARKET SHARE CONSOLIDATES IN ALL MAIN GEOGRAPHIES

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1 On 06 July 2016, DADA S.p.A., through its subsidiary Register S.p.A., acquired Sfera Networks S.r.l.. The investment is fully consolidated as from 1 July 2016. In 1H17, Sfera contributed €1.4 million to consolidated revenue and €0.4 million to consolidated EBITDA. Revenue and EBITDA in 1H17, on a like-for-like basis and at constant exchange rates, grew by +6% and +5% respectively.

2 EBITDA is gross of impairment losses and non-recurring items.

NB: for the sake of clarity, changes in percentage and absolute terms appearing in this Press Release have been calculated using exact amounts.

RESIGNATION OF DIRECTORS AND APPOINTMENT BY CO-OPTATION OF NEW DIRECTORS Florence, 27 July 2017 - Today, the Board of Directors of DADA S.p.A., listed in the STAR segment of the Milan Stock Exchange, at the head of a group that is a European leader in digitization and online presence and business services tailored to SMEs, approved the consolidated Half-Year Report at 30 June 2017.

Claudio Corbetta, CEO of DADA: "The first 6 months of 2017 saw our customer base increase by 8% versus last year. Renewals, also led by our newly acquired customers, continue to generate a growing volume of business, while remarkable results are also being achieved thanks to the sales strategies and the first-class customer service that we are now able to offer throughout Europe. We aim to further consolidate our international position in offering digital services to SMEs, by further leveraging on the now fully integrated proprietary marketing and product platform."

Lorenzo Lepri, General Manager and CFO of DADA: "The first half of 2017 ended on a highly positive tone, with a strong growth in revenue, EBITDA and net profit, and a further improvement in NFP. Half-year revenue reached the highest levels in the past 4 years, while period EBITDA was the best seen in the past 7 years, proof of the significant strides on the business and operational front. The guidance for the full year in progress points, as a minimum, to a mid single-digit increase in revenue and a more than proportional improvement in operating profit."

CHANGES IN THE SCOPE OF CONSOLIDATION

To offer a clearer picture of period figures between the two years, mention should be made that on 6 July 2016, through its subsidiary Register.it S.p.A., DADA S.p.A. acquired 100% of Sfera Networks S.r.l., specialized in virtual hosting and network & private cloud services. The investment in Sfera is fully consolidated as from 1 July 2016; as a result, 1H16 had no financial benefit from this company.

All the following comments and analysis on income statement and cash flow figures in this press release stem from the abovementioned new Group scope.

GROUP RESULTS IN 1H17

The DADA Group ended 1H17 with consolidated revenue of €35.0 million, up by 7% versus

€32.8 million in 1H16.

The revenue performance in the period reflects, in addition to the organic growth of business, on the one hand, the appreciation trend of the Euro against the British Pound, which impacted

negatively in 1H17 for approximately €1.2 million versus 1H16 and, on the other, the consolidation of the results of Sfera as from 1 July 2016, which contributes €1.4 million to revenue in 1H17.

Net of these effects, revenue would have grown by 6% versus 1H16.

Foreign-based activities contributed 52% to consolidated revenue in 1H17, dropping slightly versus 55% reported in 1H16 (due mainly to the depreciation of the British Pound and to Sfera's contribution to domestic revenue), thus confirming the dominant role played by international business in the overall development of the Group.

Consolidated EBITDA in 1H17 came to €6.6 million, up by 11% versus 1H16 (€5.9 million), accounting for 19% of revenue (18% in the prior year).

The EBITDA performance, as for revenue, reflects the adverse trend of the appreciation of the Euro against the British Pound, which accounted for approximately -€0.2 million in 1H17 versus 1H16, as well as the consolidation of Sfera, as from 1 July 2016, which brings a positive contribution of €0.4 million.

Looking at the impact of the main items on each line of the income statement:

• Service costs in 1H17 amounted to €19.2 million, up by 5% versus €18.2 million in 1H16, steady at 55% of revenue. Specifically, the cost of goods sold increased, due partly to the consolidation of Sfera and partly to the continued promotional campaigns launched to support customer growth;
  • Payroll costs in 1H17 amounted to €10.3 million, up by 5% versus €9.8 million in 1H16, steady at 30% of revenue. The trend is mainly ascribable to the increase in staff (452 units at 30 June 2017 versus 442 at 30 June 2016), mainly due to the consolidation of Sfera;
  • Change in inventories and increase in own work capitalized, amounting in 1H17 to

€1.1 million, down by approximately 9% versus 1H16 (€1.2 million), accounting for 3% of revenue (4% in 1H16), consists of expenses incurred for the development of the proprietary platforms needed to launch and manage the services provided by the DADA Group.

Consolidated EBIT at 30 June 2017 amounted to €3.3 million, with a 10% margin on revenue, up by 29% versus 1H16 (€2.6 million, 8% margin).

In addition to the EBITDA trend, EBIT's performance reflects the following elements:

- depreciation and amortization, amounting to €2.9 million (8% margin on revenue), €1.7 million of which for tangible assets and €1.2 million for intangible assets; the overall figure dropped by 10% versus 1H16 (€3.2 million, 10% margin on revenue). The reduction affected almost equally tangible and intangible assets, mainly ascribable to the full implementation of investments made on proprietary platforms and for the Datacenter;

- impairment losses, provisions and other non-recurring income/charges amounted to

€0.4 million in 1H17 (€0.2 million in 1H16), and mainly included charges for the efficiency

of the organizational structure, and the rest for the impairment of trade receivables and non-recurring charges.

Financial activities in 1H17 (the difference between financial income and charges, including the income statement effects of forex movements) came to -€1.3 million versus -€1.6 million in 1H16. The trend of this item in the period was affected by the impact of forex fluctuations, especially those regarding the Euro/British Pound exchange rate for the amount of €0.1 million, which had brought a negative contribution of €0.2 million in 1H16. Total financial charges, net of exchange losses, improved in 1H17 versus 1H16 (-€1.2 million at 30 June 2017 versus -€1.4 million at 30 June 2016), due to both the trend in spreads and rates charged, which benefited from the renegotiation of the loans made in late 2016, and to the reduction in the total Net Financial Position.

The consolidated Tax burden in 1H17 amounted to -€0.7 million (-€0.6 million in 1H16) and reflects: (i) current taxes of -€0.5 million (in line with 1H16), thanks to the higher taxable income in countries where the Group makes use of tax losses, (ii) deferred tax assets of -€0.2 million (-€0.1 million in 1H16).

The consolidated Net Profit at 30 June 2017 came to a positive €1.3 million, improving significantly versus the positive €0.4 million in 1H16.

GROUP BALANCE SHEET AND FINANCIAL POSITION AT 30 JUNE 2017

The consolidated Net Financial Position at 30 June 2017 came to

-€26.1 million, improving by €3.4 million versus -€29.5 million at 31 December 2016. The figure mainly reflects the positive trend of cash flows from operating activities of €7.2 million generated by the Group in 1H17 (€6.5 million in 1H16). Mention should be made that the first two quarters of the year generally benefit from higher cash flow levels from operations than in the following quarters. Investments in the reporting period amounted to approximately €2.3 million (€2.7 million at 30 June 2016), €1.2 million of which for tangible investments in technology (€1.5 million in 1H16), and €1.1 million of which for intangible assets (€1.2 million in 1H16), consisting mainly of costs for the development of the processes and proprietary platforms.

The DADA Group's Net Working Capital came to -€13.2 million at 30 June 2017 versus -€12.2 million at 31 December 2016 and -€12.1 million at 30 June 2016. It should be noted that the trend of this item over the four quarters of the year is closely tied to business operations, which typically report higher cash-ins in the first quarter for service revenue than in subsequent quarters; part of this revenue is subsequently recognized over the full year as deferred income on a pro-rata basis. The abovementioned deferred income (€15.5 million at 30 June 2017 versus €14.1 million at 31 December 2016) is included in other payables, but will not entail future financial outlays, rather the recognition of revenue in the income statement.

The DADA Group's Equity amounted to €53.4 million at 31 March 2017 versus €52.9 million at 31 December 2016; the change is explained mainly by the positive contribution of net profit for the period of €1.3 million, and the rest by the negative effects of the translation reserve.