Ecotel communication : Half-yearly financial report 2023 (08/31/2023)

QUARTERLY REPORT

2023

Q2

Key figures

Profit and Loss Statement		1st Half of 2022	1st Half of 2023	2nd Quarter 2022	2nd Quarter 2023
Sales from continued operations	in mil. euros	44.8	51.6	24.6	23.0
ecotel business customers	in mil. euros	22.7	22.7	11.4	11.3
ecotel Wholesale	in mil. euros	22.1	28.9	13.2	11.7
Gross profit from continued operations	in mil. euros	15.1	16.2	7.6	8.0
ecotel business customers	in mil. euros	14.5	15.3	7.4	7.6
ecotel Wholesale	in mil. euros	0.6	0.9	0.3	0.5
EBITDA 1	in mil. euros	19.5	9.3	17.3	2.0
Operating EBITDA 2	in mil. euros	4.6	5.3	2.4	2.0
ecotel business customers	in mil. euros	4.3	4.8	2.2	1.7
ecotel Wholesale	in mil. euros	0.3	0.5	0.2	0.3
Operating result (EBIT) from continued
operations	in mil. euros	16.6	6.7	15.9	0.7
Consolidated net income	in mil. euros	13.8	6.7	12.5	2.2
thereof from discontinued operations	in mil. euros	3.0	1.8	1.5	1.8
Earnings per share 3	in euros	3.94	1.91	3.57	0.62

Cash flow

Cash and cash equivalents as of 01/01

Cash flow from operating activities

Cash flow from investing activities

Cash flow from financing activities

Cash and cash equivalents as of 06/30.

Free Cash flow4

in mil. euros in mil. euros in mil. euros in mil. euros in mil. euros

in mil. euros

1st Half of 2022

12.6

21.4

-2.5

-5.7

25.8

18.9

1st Half of 2023

66.9

7.9

-1.2

-66.6

7.0

6.7

Balance sheet

Balance sheet total

Equity

in % of balance sheet total

Net financial assets 5

	1st Half of 2022
in mil. euros	75.3
in mil. euros	40.6
	53.9%
in mil. euros	23.9

1st Half of 2023

49.8

22.9

46.1%

7.0

Further key figures		1st Half of 2022	1st Half of 2023
Number of shares as of 06/30.	Quantity	3,510,000	3,510,000
(outstanding shares)
Employees as of 06/30.6	Quantity	199	207
Personnel expenses ⁷	in mil. euros	6.7	8.0

There may be differences in the totals due to commercial rounding

1. Earnings before scheduled and unscheduled impairments, financial result and income taxes
2. Definition - see the Consolidated Management Report in the 2022 annual report on page 52
3. Basic

4  Free Cash flow = Cash flow from operating activities + cash flow from investing activities

• Cash and cash equivalents

6 Without minority companies (mvneco) in 2022 without easybell and nacamar

⁷ 2022 without easybell and nacamar personnel expenditures / 2023 incl. special bonuses totaling 0.9 mil. euros

2

		Contents
	Key figures	2
	To our shareholders
	Letter to our shareholders	4
	Investor Relations	5
	Interim Management Report for the first half of 2023
	Earnings situation	6-7
	Financial situation	7
	Net asset situation	8
	Risk report	8
	Outlook	8
	Events after the end of the reporting period	8
	Consolidated Half-year Financial Statement as of June 30, 2023
	Consolidated statement of financial position as of June 30, 2023	9-10
	Consolidated statement of comprehensive income for the second quarter of 2023 and the first half of 2023	11
	Consolidated cash flow statement for the first half of 2023	12
	Consolidated statement of development of group equity as of June 30, 2023	13
	Consolidated statement of income as of June 30, 2023	14-15
	Other	16
	Statement by the legal representatives	17
	Financial calendar	18
	Contact	18
	Legal Notice	18
	Disclaimer	18

3

Letter to our shareholders

Dear Shareholders,

The first half of 2023 proceeded positively as planned. The integration of the nacamar segment into Uplink Digital GmbH and the dividend payment totaling 66.1 mil. euros approved at the Annual General Meeting on April 21, 2023 were successfully executed. The groundwork for the "cloud" and "fiber" growth strategies was effectively laid, and investments were carried out as scheduled. Especially noteworthy, expansion of sales activities and the establishment of sales resources were achieved in the first half of 2023. At the end of July 2023, a new digital order line was successfully added as a further distribution channel. These measures will contribute to further growth in the second half of the year. Additionally, during the first half of the year, further rights of use to internet resources totaling 5.4 mil. euros were transferred, including 4 mil. euros in unscheduled transfers.

The Group's revenue increased by 6.8 mil. euros to 51.6 mil. euros. The "ecotel Wholesale" segment contributed

28.9 mil. euros to this growth (previous year: 22.1 mil. euros) to this growth; revenue in the "ecotel Business Customers" segment in the first half year of 2023 was as planned at 22.7 mil. euros (previous year: 22.7 mil. euros). The growth initia- tives and gradual implementation of new major contracts acquired since the beginning of the year will lead to increased revenues in the "ecotel Business Customers" segment in the coming quarters. In the "fiber" segment, 250 high-revenue and high-margin leased lines, mainly fiber optic connections, were put into operation during the first half of the year. In the

"cloud" segment, the so-called seats doubled, and 2,400 voice channels were activated.

In both segments, the gross profit was further increased. with an overall growth of over 7% (1.1 mil. euros), amounting to

16.2 mil. euros (previous year: 15.1 mil. euros). Of this, the "ecotel Business Customers" segment generated 15.3 mil. euros (previous year: 14.5 mil. euros), and the "ecotel Wholesale" segment generated 0.9 mil. euros (previous year: 0.6 mil. euros).

Despite the growth investments, which are reflected in increased personnel and other operational expenses, the operating EBITDA for the first half of 2023 increased significantly to 5.3 mil. euros (previous year: 4.6 mil. euros). Both segments contributed to this growth: "ecotel Business Customers" with 4.8 mil. euros (previous year: 4.3 mil. euros) and "ecotel Wholesale" with 0.5 mil. euros (previous year: 0.3 mil. euros). Meanwhile, the unadjusted EBITDA even reached 9.3 mil. euros.

Taking into consideration the further reduced amortization and depreciation (2.5 mil. euros; previous year: 2.9 mil. euros),

the financial result (0.4 mil. euros; previous year: - 0.1 mil. euros), taxes (- 2.2 mil. euros; previous year: - 4.2 mil. euros), and the result from discontinued business segments due to the deconsolidation and Q1 results of the nacamar segment (1.8 mil. euros), the first half of 2023 concluded with a consolidated net income of 6.7 mil. euros (previous year: 13.8 mil. euros). This corresponds to per-share earnings of 1.91 euros (previous year: 3.94 euros).

Even after the substantial dividend payout this year, ecotel remains debt-free and reports a net financial assets of

7.0 mil. euros as of 06/30/2023 (previous year: 23.9 mil. euros). The equity ratio, after dividend distribution, slightly decreased to 46.1% (previous year: 53.9%). Management continues to uphold the forecast for the 2023 financial year, as outlined in the Forecast Report included in the 2022 Annual Report.

Düsseldorf, August 2023

Markus Hendrich	Achim Theis	4

Chairman of the Board

Board of Directors

Investor Relations

The ecotel share at a glance

Shareholder structure

The ecotel share started 2023 at 30.80 euros. In the first half of 2023, ecotel shares up to the Annual General Meeting had a mainly positive and clear development with the development of DAX and TecDAX. Following the Annual General Meeting and the distribution of dividends, there occurred an expected dividend reduction and, since then, slight lateral fluctuations. The share closed the first half year at 21.70 euros with 3.51 mil. euros shares outstan- ding, resulting in a market capitalization of 76.2 mil. euros (06/30/2022: 107.1 mil. euros). The average trading volume in the first three months was 8,463 shares (first half of 2022: 3.973 shares).

As of 06/30/2023, the share capital of ecotel communication ag remained unchanged at 3,510,000 shares. Mr. Peter Zils and Mr. Andrey Morozov each hold almost 30% of the shares. A further 11% is distributed among the shareholders who are known to us through corresponding notifications (Securities Trading Act notifications > 3%). The free float is therefore around 29%.

Shareholding ownership (06/30/2023) in percent

Key figures Ø 2023

29,91 %

Peter Zils

3,20 % Hans Schmier

7,83 %

CBOSS Orient FZ-LLC.

29,99 %

Andrey Morozov

WKN

ISIN

Symbol

Market segment since 08/08/2007

Index membership

585434

DE0005854343

E4C

Prime Standard

CDAX, Prime All Share Technology All Share

29,07 %

free float

Category	Shares
Date of initial listing	03/29/2006
Number of shares as of 06/30/2023	3,510,000
Average daily volume 2023	8,463
2023 historical high (euros)	53.00
2023 historical low (euros)	21.50
Market capitalization as of 06/30/2023	76.2
(mil. euros)*
Designated Sponsor	ICF BANK AG

• Based on the closing price on 6/30/2023 from 21.70 euros per share with 3,510,000 outstanding shares

Stock performance of ecotel shares in 2023 in percent

180
170					53,00 €
160
150
140
130
120
110
100
90
80
70					21,50 €
60
Jan. 23	Feb. 23	Mrz. 23	Apr. 23	Mai. 23	Jun. 23
		DAX	TEC-DAX	ecotel share	5