Ad pepper media International N : Quarterly report Q3 2021

THIRD QUARTER

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS AS AT 30 SEPTEMBER 2021

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ad pepper Group - third quarter report

Selected Group key figures

SELECTED GROUP KEY FIGURES

		Q3 2021		Q3 2020		Change		Q1-Q3 2021		Q1-Q3 2020		Change
		kEUR		kEUR		in percent		kEUR		kEUR		in percent
Gross sales	27,718	23,152	19.7	81,757	68,159	20.0
Revenue	7,004	6,011	16.5	20,404	17,968	13.6
Gross profit	6,728	5,795	16.1	19,700	17,364	13.5
EBIT	925	1,247	-25.9	2,677	3,506	-23.6
EBITDA	1,215	1,509	-19.5	3,558	4,313	-17.5
Net income for period	796	1,075	-26.0	2,154	3,105	-30.6
Earnings per share in EUR (basic)	0.03	0.04	-25.0	0.07	0.13	-46.2

	30/9/2021	30/9/2020		Change
		kEUR		kEUR		in percent
Liquid funds*	23,137	24,300	-4.8
Equity	20,954	20,588	1.8
Total assets	43,260	41,887	3.3
No. of employees	246	230	7.0

*including listed debt securities

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ad pepper Group - third 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	18
	Risk and opportunity report	18
	Outlook	19
	Interim Consolidated Financial Statements (IFRS)	20
	Consolidated income statement	20
	Consolidated statement of comprehensive income	22
	Consolidated statement of financial position	24
	Consolidated statement of cash flows	28
	Consolidated statement of changes in equity	32
	Selected explanatory notes	36
	Additional Information	50
	Investor Contact	50
	Imprint	51

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ad pepper Group - third 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

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

Key share figures		Q1 - Q3		Q1 - Q3
	2021	2020
XETRA closing price at end of period (EUR)	5.94	3.54
Highest price (EUR)	6.82	3.72
Lowest price (EUR)	4.92	2.30
Market capitalisation at end of period (EUR)		127.7 m		76.1 m
Average no. of shares
traded (XETRA) per day	12,082	8,300
Earnings per share (basic) (EUR)	0.07	0.13
Net cash per share* (EUR)	1.12	1.10

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

Shareholder structure as at		Number of shares		Shareholding
30/9/2021
				in percent
EMA B.V.	9,486,402	44.12
Treasury stock	808,557	3.76
Euro Serve Media GmbH	556,163	2.59
Subtotal	10,851,122	50.47
Free float	10,648,878	49.53
Total	21,500,000	100.0

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ad pepper Group - third 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 its 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).

The ad pepper Group also offers a broad range of services such as consulting and the development of strategies for the use of digital technology, the con- ception, 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 - the ad pepper Group is competing more and more with well-known strategy and IT consultancies.

Digital performance

marketing

Lead generation	Digital marketing
Audience targeting	agency

Germany / Spain			Germany / Switzerland
Affiliate network
	UK / Germany / France / Spain / Italy

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