Ad pepper media Intl : Quartalsbericht Q1 2021 (EN)

FIRST QUARTER

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS AS AT 31 MARCH 2021

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ad pepper Group - first quarter report

Group key figures at a glance

SELECTED GROUP KEY FIGURES

		Q1 2021		Q1 2020		Change
		kEUR		kEUR		in percent
Gross sales	28,108	21,649	29.8
Revenue	6,884	5,841	17.9
Gross profit	6,638	5,703	16.4
EBIT	1,010	839	20.4
EBITDA	1,306	1,120	16.6
Net income/(loss) for period	846	730	15.9
Earnings per share in EUR (basic)	0.03	0.03	-

	31/3/2021	31/3/2020		Change
		kEUR		kEUR		in percent
Liquid funds*	26,403	20,572	28.3
Equity	20,537	18,745	-1.4
Total assets	46,385	39,029	-5.0
No. of employees	235	225	4.4

*including securities

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ad pepper Group - first 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	17
	Research and development activities	18
	Employees	19
	Risk and opportunity report	20
	Outlook	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	50
	Financial Calendar	50
	Investor Contact	50
	Imprint	51

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ad pepper Group - first quarter report

Share

KEY FIGURES AT A GLANCE

Key data about 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

October 9, 2000

Pareto Securities

1,075,000

21,500,000

Advertising

Share price performance over the past twelve months (Xetra)

7.00

6.00

5.00

4.00

3.00

2.00

1.00

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

Key share figures		Q1		Q1
	2021	2020
XETRA closing price at end of period (EUR)	6.30	2.62
Highest price (EUR)	6.70	3.17
Lowest price (EUR)	4.92	2.30
Market capitalisation at end of period (EUR)		135.5m		56.3m
Average no. of shares
traded (XETRA) per day	20,543	8,118
Earnings per share (basic) (EUR)	0.03	0.03
Net cash per share* (EUR)	1.27	0.90

Shareholder structure as at		Number of shares		Shareholding
31/3/2021
				in percent
EMA B.V.	9,486,402	44.12
Treasury stock	767,915	3.57
Euro Serve Media GmbH	556,163	2.59
Subtotal	10,810,480	50.28
Free float	10,689,520	49.72
Total	21,500,000	100.0

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

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ad pepper Group - first 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, thus, is one of the pioneers in the online marketing industry. With nine offices in four European countries and the U.S., 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. These dynamics drive our business and open up a range of new opportunities for our clients and us.

The ad pepper Group works for large firms 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 relation-ships: some of its clients have worked with the Company 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 (full-service agency), and Webgains (affiliate network). Within the frame-work 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), CPA (cost-per-acquisition).

ad pepper also offers a broad range of services such as advice and development of strategies for the use of digital technology, the conception, implementation and execution of digital marketing and communication measures as well as advice 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 the companies, 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					Full service
Audience targeting						agency
							Germany / Switzerland
Germany / Spain
	Affiliate network
			UK/ Germany / France / Spain / Italy

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