UniDevice : Q3 2023 – quarterly report

Q3 - Report

IFRS consolidation

September 30, 2023

Commercial register:Berlin-Charlottenburg

Commercial register number: HRB 190230 B

The share

Nominal capital	15.050.000,00 EUR
Classes of shares	Bearer shares
WKN / ISIN	A11QLU / DE000A11QLU3
Number of shares	15.050.000
Stock symbol	UDC
Listing	Munich stock exchange	Frankfurt stock exchange
Stock market segment	m:access	Open Market
First trading day	6th March 2018	7th March 2018
Designated Sponsor,
Listing Partner, Specialist	mwb fairtrade Wertpapierhandelsbank AG

The bond

Nominal amount	up to 20,000,000.00 EUR
Interest coupon	6.5%
Bond class	Owner bond
WKN / ISIN	A254PV / DE000A254PV7
Listing	Frankfurt stock exchange
First trading day	December 17, 2019
Specialist	Wolfgang Steubing AG Wertpapierhandelsbank

Content	Page
Letter to the Shareholders	1
Group Management Report	2
IFRS Consolidated Financial Statements	6
Notes to the Consolidated Financial Statements	10

Letter to the Shareholders

Dear Shareholders, dear Sirs and Madames,

more profit was achieved in the third quarter of 2023 than in the first two quarters of 2023 combined. The gross margin increased compared to the first half of 2023.

The ongoing real income losses for many consumers and the decline in economic output in Germany are depressing consumer sentiment and contributing to the fact that overall sales and profits remain below the previous year's level.

For the fourth quarter of 2023, we expect sales and profits to be above the level of the third quarter. A gradual reduction in the rate of inflation and thus in consumers' real income losses can make a positive contribution.

In October 2023, sales of EUR 47 million were even 15% higher than the previous year's October 2022 of EUR 41 million.

At this point I would like to once again thank the employees for their high level of commitment. I would like to thank the members of the Supervisory Board for the good cooperation.

Dr. Christian Pahl

(CEO) October 2023

1

Group Management Report

September 30, 2023

1. Basis of the group

1. Economic report

1. Outlook

IV. Chances- and Risk Report

2

1. Basis of the group

The UniDevice group is active with PPA International AG in international B2B brokerage and international wholesale of electronic devices in the areas of entertainment and communication, and with UniService GmbH it has a service company for logistics and administration. The focus of business activities is on the growth markets of electronic devices from the areas of entertainment and communication. Overall, the UniDevice Group is active in the sale of electronic devices in the areas of entertainment and communication.

1. Economic report

Business development

The UniDevice Group sells electronic devices. Sales in this business area amounted to EUR 285.97 million in the first nine months of 2023 (previous year period: EUR 316.62 million). The net income for the first nine months of 2023 was EUR 1.00 million (previous year period: EUR 2.23 million).

Earnings situation

The company's sales were mainly generated with electronic devices. The cost of materials in relation to sales was 98.23% (previous year period: 97.76%). The operating result (EBIT, earnings before taxes and interest) was EUR 1.90 million (0.67% of sales); previous year period: EUR 3.44 million (1.09% of sales).

Financial situation

The UniDevice Group's financial position can be described as very stable. Financial management is designed to always settle liabilities within the payment period and to collect receivables within the payment terms. The capital structure of the UniDevice group is stable.

The equity amounted to EUR 23.46 million as of September 30, 2023. The equity ratio was

46.81% as of September 30, 2023. We have a higher credit line than we use on average. The unused bank credit line amounted to EUR 0.41 million.

The bond liability amounted to EUR 3.39 million and 6.80% of the balance sheet total. All liabilities can always be settled within the payment terms.

All liabilities can always be settled within the payment terms. As in the previous year, no significant investments in property, plant and equipment had to be financed.

Assets situation

The UniDevice Group's financial position is good. Trade accounts receivable increased from EUR

6.51 million on December 31, 2022 to EUR 12.43 million as of September 30, 2023. Inventories fell to EUR 9.55 million (December 31, 2022: EUR 11.47 million). As of the reporting date, the UniDevice Group had liquid funds of EUR 2.50 million (December 31, 2022: EUR 0.27 million).

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Financial key performance indicator

We use the key figure EBIT (operating result, earnings before taxes and interest) for internal corporate management. EBIT is EUR 1.90 million; 0.67% of sales (previous year period: EUR 3.44 million; 1.09% of sales). The UniDevice Group works profitably.

The overall economic situation is characterized by inflation-related losses of purchasing power for many consumers and is depressing consumer sentiment.

1. Outlook

We assess the probable development of the UniDevice Group as positive. International B2B brokerage and international wholesale of electronic devices from the entertainment and communication sectors remains profitable; despite significant inflation-related losses in purchasing power for many consumers.

IV.	Chances- and Risk Report

Industry-specific risks

The market for electronic devices in the areas of entertainment and communication is constantly changing. The group of companies continuously monitors market changes and immediately adapts to changed market conditions. A high turnover rate reduces the risk of unexpected changes in the value of goods.

Profit-related risks

Competitive risks may increase due to new competitors entering the industry. Our services offer cost and competitive advantages, and we therefore assume that we will be able to continue expanding our market share in the communication device segment.

Sales and earnings are negatively affected by consumers' loss of purchasing power due to infla- tion.

Financial risks

The group's liquidity and equity situation is good. Liquidity risks are currently not discernible. There are no significant currency risks that could affect the company's net assets, financial position and results of operations, since foreign currency payments are carried out immediately according to the calculated parameters. Deliveries of goods from foreign currency countries are processed within very short periods of time.

Risk management system

The UniDevice Group uses a risk management system that systematically identifies significant and existence-threatening risks in order to evaluate their effects and to develop suitable mea- sures. The aim of the risk management system is to avoid financial losses, failures or disruptions or to implement suitable countermeasures immediately. The Management Board and Supervisory Board are informed of risks at an early stage as part of the risk management system. The monitoring of liquidity and the development of earnings are important aspects and parameters of the risk

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management system. Operational development is continuously monitored in order to identify deviations from plan in good time. The Executive Board decides on the appropriate strategy and measures for controlling risks.

General statement

The constant change in the market for electronic devices from the areas of entertainment and communication is a risk of future development. The market attractiveness and pricing of electronic entertainment and communication devices is subject to constant change.

The financial stability of the group of companies allows us to continue to manage the risks and seize the opportunities in the future. There are currently no discernible risks that could jeopardize the continued existence of the company.

Schönefeld, October 30, 2023

Dr. Christian Pahl

(CEO)

5

IFRS Consolidated Financial Statements

September 30, 2023

1. Consolidated balance sheet

1. Consolidated profit and loss summary account

1. Consolidated cash flow statement

6

7

UniDevice AG consolidated balance sheet

September 30, 2023

(Accounting under IFRS)
		Sep 30	Dec 31			Sep 30	Dec 31
		2023	2022			2023	2022
ASSETS	Notes	EUR	EUR	LIABILITIES AND EQUITY	Notes	EUR	EUR
Cash	5.1.	2,503,016.04	274,501.83	Accruals	5.7.	457,216.57	1,389,352.99
Trade receivables	5.2.	12,432,824.86	6,509,905.85	Bank loan	5.8.	8,986,702.38	3,349,990.31
Inventory	5.3.	9,548,294.76	11,473,159.19	Trade payables	5.9.	1,611,415.88	481,711.93
Other short-term assets	5.4.	10,549,798.09	6,824,727.07	Other short-term liabilities	5.10.	6,462,366.91	3,891,658.17
Short-term assets		35,033,933.75	25,082,293.94	Short-term liabilities		17,517,701.74	9,112,713.40
Intangible assets	5.5.	0.00	0.00	Bond	5.11.	3,398,000.00	3,398,000.00
Company value	5.5.	14,950,000.00	14,950,000.00	Management loan	5.12.	5,660,314.20	3,830,877.34
Tangible assets	5.5.	113,125.45	176,027.65	Lease liabilities	5.13.	83,590.66	136,840.59
Deferred assets	5.6.	22,153.67	13,971.63	Deferred liabilities	5.14.	0.00	0.00
Long-term assets		15,085,279.12	15,139,999.28	Long-term liabilities		9,141,904.86	7,365,717.93
				Share capital	5.15.	15,050,000.00	15,050,000.00
				Own shares	5.15.	0.00	-400,245.00
				Capital reserve	5.15.	1,162,806.86	646,101.99
				Legal reserve	5.15.	320,646.54	320,646.54
				Revenue reserves	5.15.	0.00	395,942.44
				Balance sheet profit	5.15.	6,926,152.87	7,731,415.92
				Equity	5.15.	23,459,606.27	23,743,861.89
						46.81%	59.03%
TOTAL ASSETS		50,119,212.87	40,222,293.22	TOTAL LIABILITIES AND EQUITY		50,119,212.87	40,222,293.22

	UniDevice AG consolidated profit and loss summary account
	September 30, 2023
(Accounting under IFRS)
			Sep 30	Sep 30	Dec 31
			2023	2022	2022
		Notes	EUR	EUR	EUR
1.	Sales	7.1.	285,968,660.46	316,618,658.30	460,522,257.18
2.	Other operating income	7.2.	1,212,082.30	28,417.74	1,795,083.57
3.	Cost of materials	7.3.
	Cost of purchased goods and services		-280,912,287.92	-309,514,797.44	-449,517,313.19
	Gross Margin		5,056,372.54	7,103,860.86	11,004,943.99
	in %		1.77%	2.24%	2.39%
4.	Labour cost	7.4.
	a) Salaries		-1,146,844.58	-1,053,472.89	-1,905,156.61
	b) Social insurance contribution		-196,519.24	-168,513.15	-236,887.38
			-1,343,363.82	-1,221,986.04	-2,142,043.99
5.	Depreciation / Amortisation of intangible and tangible assets	7.5.	-66,992.88	-411,285.55	-1,091,941.13
6.	Consolidation profit / loss	7.6.	0.00	0.00	-560,000.00
7.	Other operational expenses	7.7.	-2,953,352.59	-2,057,381.96	-4,856,760.60
8.	EBIT (earnings before interest and tax)		1,904,745.55	3,441,625.05	4,149,281.84
	in %		0.67%	1.09%	0.90%
9.	Interest and similar income	7.8.	65,186.76	137,828.00	179,356.69
10.	Intererest and similar expenses	7.9.	-648,486.37	-491,388.72	-779,406.93
11.	Financial result		-583,299.61	-353,560.72	-600,050.24
12.	EBT (earnings before tax)		1,321,445.94	3,088,064.33	3,549,231.60
	in %		0.46%	0.98%	0.77%
13.	Income tax	7.10.	-318,031.49	-857,211.68	-1,212,131.19
14.	Net profit		1,003,414.44	2,230,852.65	2,337,100.41
	in %		0.35%	0.70%	0.51%
	Undiluted earnings per share		0.07	0.15	0.11

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