AdUX : 2020 Annual results

Press release

2020 ANNUAL RESULTS1

Levallois-Perret,April 1st, 2021, 6:00pm - AdUX group, a specialist in digital advertising and user experience (Code ISIN FR0012821890 - ADUX) released its results of the financial year 2020.

Activity severely affected by the Covid-19 health crisis

In M€		FY 2020	FY 2019	Var. %
	Revenue (1)	17,9	24,8	-28%
	Gross margin	8,1	11,9	-32%
Group	EBITDA (2)	0,4	0,1	-
	Operating profit		0,1	-
	(0,6)
	Net income	(0,9)	(0,4)	-

Revenue for the 2020 financial year amounts to 17.9 million of euros compared to 24.8 million of euros (-28%) in 2019.

The health crisis caused by the Covid-19 epidemic and the lockdown of the majority of the European population had an immediate impact on household consumption and on the marketing expenses of advertisers. As of March 2020, many advertising campaigns have been cancelled or postponed. With lags of a few weeks, the trend was the same in all countries where AdUX is located. The decline was confirmed and accentuated in April and May 2020. The activity trend in the second half of the year remains negative but has improved compared to the first half.

1. Vs. 19.3 million of euros of revenue published for the 4th quarter press release on February 25th, 2021.
2. Earnings before interests, depreciation and amortization.

Analysis of the income statement

The gross margin for the year amounts to 8.1 million of euros (-3.8 million of euros compared to the 2019 financial year).

Personal costs decrease by 3.2 million of euros to reach 4.5 million of euros, this decrease is mainly explained by the reduction in costs accompanied by government aid measures related to COVID-19.

External purchasing costs were also reduced with a decrease of 0.9 million of euros over the year. They amount to 3.2 million of euros as of December 31st, 2020.

EBITDA is positive at +0.4 million euros, increasing by 0.3 million of euros compared to 2019.

Depreciation and amortization are stable at -1.6 million euros and current operating profit reaches -1.2 million euros vs. -1.5 million euros in 2019.

The disposals of investments and in particular the participation in Admoove Sweden as well as the settlement of commercial litigation less restructuring charges have generated a non- current income of 0.6 million of euros. Operating profit therefore reaches -0.6 million of euros.

After including the financial result and tax charges, the net income including Group share amounts to -0.9 million euros, compared to -0.4 million euros in 2019.

In M€	2020	2019	Var.
Sales	17,9	24,8	-6,8
Charges invoiced by the media	-9,8	-12,8	3,0
Gross profit	8,1	11,9	-3,8
Purchases	-3,2	-4,1	0,9
Payroll charges	-4,5	-7,8	3,2
EBITDA	0,4	0,1	0,3
Depreciation and amortization	-1,6	-1,6	-0,1
Current operating profit	-1,2	-1,5	0,3
Stock based compensation	0,0	0,0	0,0
Other non-current income and charges	0,6	1,6	-1,0
Operating profit	-0,6	0,1	-0,7
Cost of indebtedness	-0,1	-0,1	0,0
Other financial income and charges	-0,1	-0,4	0,3
Earning of the consolidated companies	-0,8	-0,3	-0,4
Share in the earnings of the companies treated on an equity basis	0,0	0,0	0,0
Earnings before tax of the consolidated companies	-0,8	-0,3	-0,5
Income Tax	-0,1	-0,1	0,0
Net income	-0,9	-0,4	-0,5
Including minority interests	0,0	0,0	0,0
Including Group share	-0,9	-0,4	-0,5

Events & Perspectives

The activity trend improved over the second half of the year and gives hope that the 2021 financial year will show a rebound in activity, although the advertising market offers very limited visibility to date. This return to growth in 2021 should take place gradually throughout the year, with a sustainably reduced cost base (beyond the support measures for businesses put in place during the health crisis in 2020) allowing to generate a significant increase of the EBITDA.

2020 annual and consolidated financial statements, which were approved by the Board of directors of AdUX SA on March 30th, 2021. Audit procedures are in progress. The annual financial report of the accounts closed on December 31st, 2020 will be available within the legal deadlines on the Company's website www.adux.com on section "Investors".

Next financial announcements

Revenue of the 1st quarter 2021

Thursday 22th May 2021 after closing of the stock market

ABOUT ADUX

A pioneer of the sector, ADUX is a European specialist of digital advertising and user experience. With a presence in 6 European countries, it attained a turnover of 18 million of euros in 2020.

The company is listed in the Euronext Paris Compartment C and Amsterdam (Euronext) and holds the "Innovative Company" label.

This label offers, for a period of 3 years, the possibility for the FCPI to invest in the capital of ADUX, and for their subscribers to benefit from the corresponding tax benefits.

Code ISIN : FR 0012821890 / LEI : 969500IIE66C3CFB1K57 / Mnémo : ADUX

For more information, please visit www.adux.com

Follow us on Twitter: @AdUX_France

LinkedIn:http://www.linkedin.com/company/adux_fr

This statement may contain certain forward-looking statements. Although the AdUX Group believes that these statements are based on reasonable assumptions as on the date of publication of this statement, they are, by their very nature, subject to risk and uncertainty that can create a difference between the actual figures and those indicated in or inferred from these statements. The AdUX Group operates in a continually changing sector where new risk factors can emerge at any time.

Consolidated Financial statements for FY2020 and FY2019

in thousands of Euros	31 Dec.2020	31 Dec.2019
Sales	17 947	24 766
Charges invoiced by the media	- 9 830	- 12 848
Gross profit	8 116	11 918
Purchases	- 3 165	- 4 056
Payroll costs	- 4 530	- 7 754
EBITDA (1)	421	108
Depreciation and amortization	- 1 638	- 1 586
Stock based compensation	-	- 12
Current operating profit	- 1 218	- 1 491
Other non-current income and charges	618	1 636
Operating profit	- 600	145
Cost of indebtedness	- 66	- 52
Other financial income and charges	- 113	- 428
Earning of the consolidated companies	- 779	- 335
Share in the earnings of the companies treated on an equity basis	-	20
Earnings before tax of the consolidated companies	- 779	- 315
Income Tax	- 71	- 58
Net income	- 850	- 372
Including minority interests	- 0	- 27
Including Group share	- 851	- 400

1. Current operating income before allocations and reversals of depreciation, amortization and provisions

Consolidated balance sheet as of December 31st, 2020 and December 31st, 2019

ASSETS - in thousands of euros	31 dec.2020		31 dec.2019
Net Goodwill		2 468	2 468
Net intangible fixed assets		842	1 498
Net tangible fixed assets		168	240
Right of use assets related to leases		956	1 193
Deferred tax credits		0	-
Other financial assets		175	173
Assets held for sale		0	-
Non-current assets		4 608	5 572
Customers and other debtors		13 345	14 245
Other current assets		6 313	11 560
Current financial assets		0	-
Cash and cash equivalents		1 557	3 172
Current assets		21 216	28 977
TOTAL ASSETS		25 824	34 548

	31 dec.2020	31 dec.2019
LIABILITIES - in thousands of euros
Share capital	9 417	9 417
Premiums on issue and reserves	-14 068	-13 130
Treasury shares	-101	-84
Consolidated net income (Group share)	-851	-400

Shareholders' equity (Group share)	-5 603	-4 197
Minority interests	27	26
Shareholders' equity	-5 577	-4 171
Long-term borrowings and financial liabilities	1 000	1 510
Long-term lease liabilities	723	959
Non-current Provisions	580	480
Deferred tax liabilities	0	-
Liabilities held for sale	-	-
Non-current liabilities	2 303	2 949
Short-term financial liabilities and bank overdrafts	1 900	3 407
Short-term lease liabilities	310	293
Current provisions	200	2 052
Suppliers and other creditors	20 667	20 296
Other current debts and liabilities	6 021	9 723
Current liabilities	29 098	35 771
TOTAL LIABILITIES	25 824	34 548