Ad pepper media International N : Quarterly report Q2 2021

SECOND QUARTER

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS AS AT 30 JUNE 2021

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ad pepper Group - second quarter report

Group key figures at a glance

SELECTED GROUP KEY FIGURES

		Q2 2021		Q2 2020		Change		H1 2021		H1 2020		Change
		kEUR		kEUR		in percent		kEUR		kEUR		in percent
Gross sales	25,931	23,357	11.0	54,039	45,007	20.1
Revenue	6,516	6,116	6.5	13,400	11,957	12.1
Gross profit	6,334	5,866	8.0	12,972	11,569	12.1
EBIT	743	1,420	-47.7	1,752	2,259	-22.4
EBITDA	1,036	1,684	-62.5	2,342	2,804	-16.5
Net income/(loss) for period	512	1,300	-60.6	1,358	2,029	-33.1
Earnings per share in EUR (basic)	0.01	0.06	-83.3	0.05	0.09	-44.4

	30/6/2021	30/6/2020		Change
		kEUR		kEUR		in percent
Liquid funds*	25,002	22,139	12.9
Equity	20,341	19,570	3.9
Total assets	42,692	40,880	4.4
No. of employees	242	218	11.0

*including listed debt securities

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ad pepper Group - second quarter report

Contents

CONTENTS

	The ad pepper share	6
	Interim Management Report	8
	The structure of the ad pepper Group	8
	General information about this management report	13
	Macroeconomic framework	14
	Earnings, financial and net asset position	16
	Research and development activities	18
	Employees	19
	Risk and opportunity report	19
	Outlook	19
	Responsibility statement	20
	Interim Consolidated Financial Statements (IFRS)	22
	Consolidated income statement	22
	Consolidated statement of comprehensive income	24
	Consolidated statement of financial position	26
	Consolidated statement of cash flows	30
	Consolidated statement of changes in equity	34
	Selected explanatory notes	38
	Additional Information	52
	Financial Calendar	52
	Investor Contact	52
	Imprint	53

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ad pepper Group - second quarter report

Share

THE AD PEPPER SHARE

Key data on the ad pepper share

Security Identification Number (WKN)

ISIN

Type of share

Stock market segment (Frankfurt Stock Exchange)

Initial public offering

Designated Sponsor

Capital stock (EUR)

No. of shares

Sector

940883

NL0000238145

Ordinary bearer shares

Prime Standard

9 October 2000

Pareto Securities

1,075,000

21,500,000

Advertising

Share price performance over the past twelve months (Xetra)

7.00

6.50

6.00

5.50

5.00

4.50

4.00

3.50

3.00

J A S O N D J F M A M J

Key share figures		H1		H1
	2021	2020
XETRA closing price at end of period (EUR)	5.96	3.16
Highest price (EUR)	6.82	3.22
Lowest price (EUR)	4.92	2.30
Market capitalisation at end of period (EUR)		128.1m		67.9m
Average no. of shares
traded (XETRA) per day	14,309	8,854
Earnings per share (basic) (EUR)	0.05	0.09
Net cash per share* (EUR)	1.16	0.99

*(liquid funds - long-term debt) / number of shares outstanding

Shareholder structure as at		Number of shares		Shareholding
30/6/2021
				in percent
EMA B.V.	9,486,402	44.12
Treasury stock	762,128	3.54
Euro Serve Media GmbH	556,163	2.59
Subtotal	10,804,693	50.25
Free float	10,695,307	49.75
Total	21,500,000	100.0

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ad pepper Group - second quarter report

Interim Management Report

THE STRUCTURE OF THE AD PEPPER GROUP

ad pepper media International N.V. is the holding company of one of the leading international performance marketing groups. It was founded in 1999 and is thus one of the pioneers in the online marketing business. With ten offices in Germany, Italy, France, Spain, Switzerland, and the United Kingdom the ad pepper Group globally develops performance marketing solutions for our customers.

The Company operates within the dynamic environment of digital commerce, which is characterised by dynamic growth in both consumer and advertising expenditure. Channels such as social media, search, video and mobile - to name just a few - continue to expand their market share.

The ad pepper Group works for large corporations and major SMEs based in Europe and abroad. Our clients operate primarily in the "Trade & Consumer Goods", "Financial Services", "Telecommunication & Technology" and "Transport and Tourism" sectors. The ad pepper Group aims for long-term client relationships: for some of its clients, the Company has been working for more than ten years.

As part of our long-term value creation strategy, we are focusing on organic growth in the existing business segments, while evaluating opportunities for inorganic growth through value-accretive acquisitions. Today, the Group divides its business into three reporting segments that work in close cooperation with the holding company and operate independently on the market: ad pepper (lead generation and audience targeting), ad agents (digital marketing agency), and Webgains (affiliate network). Within the framework of the overall governance of the Group, the holding company (admin) takes responsibility for know-how transfer between the segments, the strategic focus, as well as financing and liquidity. Part of our overall strategy is to support and strengthen each segment individually, as each business has its own distinctive culture, clients, product range and regional focus. The common umbrella across the three business segments is that we offer our clients performance -based solutions. This means that the advertiser only pays if there are measurable results (completion of specific actions). The most common

models in performance-based marketing are: CPM (cost-per-mile), CPC (cost- per-click), CPL (cost-per-lead) and CPA (cost-per-acquisition).

ad pepper also offers a broad range of services such as consulting and the development of strategies for the use of digital technology, the conception, implementation and execution of digital marketing and communication measures as well as consulting on digital media strategies and digital media technologies and tools. It can therefore not be ignored that due to the growing importance of digital processes for businesses, the sheer volume of budgets allocated to these, the rising amount of data and the ever-growing importance of analysing it (preferably in real time), a successful company in the field of digital marketing has to develop competencies that go beyond the effective allocation of digital media spend across multiple channels and managing the respective campaigns. It is therefore not surprising that - in some areas of our business - ad pepper is competing more and more with well-known strategy and IT consultancies.

Digital performance

marketing

Lead generation					Digital marketing
Audience targeting						agency
							Germany / Switzerland
Germany / Spain
	Affiliate network
			UK/ Germany / France / Spain / Italy

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