German Values Property Group AG

Interim / Quarterly Report • Aug 31, 2015

Travel24.com AG

Semi-Annual Financial Report Q2 2015

Selected Key Group Data

		January 1 - June 30
In thousands of euro	2015	2014	%
Revenue	7,957	13,881	-43 %
EBIT	1,164	1,839	-37 %
Net profit	378	545	-31 %
Earnings per share in euro	0.19	0.27	-94 %
(basic and diluted)

	SELECTED KEY GROUP DATA 2
	CONTENTS 3
	MESSAGE TO THE SHAREHOLDERS 5
	GROUP MANAGEMENT REPORT 6
A.	GROUP STRUCTURE 6
B.	BUSINESS CONDITIONS 6
C.	BUSINESS STRATEGY 7
D.	TRAVEL AGENCY 7
E.	MARKETING AND KEY PERFORMANCE INDICATORS 7
F.	RESULTS OF OPERATIONS 8
G. H.	FINANCIAL POSITION AND NET ASSETS 8 EMPLOYEES 9
I.	EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE 9
J.	OPPORTUNITIES AND RISK REPORT 9
	OUTLOOK 10
	CONSOLIDATED BALANCE SHEET 11
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 13
	CONSOLIDATED STATEMENT OF CASH FLOWS14
	CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 15
	NOTES TO THE INTERIM FINANCIAL STATEMENTS 15
I.	GENERAL INFORMATION 15
II.	ACCOUNTING AND MEASUREMENT PRINCIPLES 16
II.1	ACCOUNTING BASIS 16
II.2	INITIAL APPLICATION OF NEW OR AMENDED STANDARDS IN FINANCIAL YEAR	2015 17
II.3	SCOPE OF CONSOLIDATION 17
IV.	NOTES TO THE CONSOLIDATED BALANCE SHEET 17
V.	NOTES TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 18
VI.	SEGMENT REPORTING 18
VII.	SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES 19
VIII.	EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE 19

INVESTOR RELATIONS 20
SHAREHOLDINGS OF MEMBERS OF THE MANAGEMENT AND SUPERVISORY BOARDS20
RESPONSIBILITY STATEMENT BY THE LEGAL REPRESENTATIVE 20
REPORTING CALENDAR 21
LEGAL NOTICES 22

Message to the shareholders

Dear Shareholders,

Travel24.com AG reports a lower operating result and revenue volume in the first half-year of 2015 compared to the corresponding period in the previous year. EBIT in the half-year amounted to approximately EUR 1,100 thousand, which must be seen as a positive result in view of a continued drive to optimize marketing expenses in order to increase efficiency. These measures, and the fact that a loan extended to Unister Holding GmbH of approximately EUR 2,000 thousand was repaid by the end of the half-year, again strengthen the financial resources of the Company needed for the continuing Hotel construction work.

Progress is being made with the construction of the hotel in Leipzig. Currently, however, we anticipate that a longer construction period will be needed and expect to open the hotel by the middle of 2016. This situation is due to substantial contract negotiations which have taken more time than anticipated, the result of which is that the winter construction phase will be longer than planned. We are optimistic that we will commence generating operating results in the Hotels segment in the coming year.

We remain absolutely convinced that the market entry in the budget hotel segment and, additionally, focusing the business on this segment is the right business strategy, offering a long-term prospect of success for the Company. In our view, our search for investors for the hotel chain confirms this view, and we are optimistic about the remaining negotiations and the development of the hotel brand.

Leipzig, August 2015

Yours sincerely,

Armin Schauer Management Board of Travel24.com AG

Group management report

Note:

We refer to Section I "General information" for details of an error corrected in the comparative figures for the first half-year of 2014.

A. Group structure

The Group was structured as follows at June 30:

B. Business conditions

The large number of providers and substitution products in the online travel sector remains a source of possible shifts in demand in all the markets in which Travel24 is active. As a result, the competitive intensity is very high, both in our core German market and internationally. This also affects the intensity of the central marketing channels for the online travel placement sector as a whole. Based on experience gained in the financial year 2014 and on the course of business to date in the financial year 2015, we expect, given the current competitive conditions and our business strategy, to generate EBIT at the level of around EUR 2,600 thousand in the financial year 2015.

We continue to see our Hotels segment, which is in the start-up phase, as a significant growth opportunity, and accordingly we view its prospects positively. In future the budget hotel business should drive growth in revenue and EBIT, and additionally shift to become a significant focus of our business strategy.

C. Business strategy

Travel24.com AG continues to plan for the development and future growth of the Hotels segment. For this purpose the first budget design hotel is to be established in Leipzig. The hotel is currently under construction and should be opened next year.

The travel placement business in the Germany-Austria-Switzerland region will be kept at a stable level in order to generate a continued good level of EBIT and cash flows, which in turn can be used to support the creation and development of the Hotels segment.

Based on our experience in various European markets, in which we were in part able to generate strong revenue growth but where we also generated negative results, we limit our internationalization strategy to France. The consequence of this is that we expect falls in revenues and booking volumes in the coming quarters compared to previous periods, some of which will be substantial. However, as this will result in an overall improvement and long-term stability in results, these falls should be seen as a strengthening rather than a weakening of the Company. The marketing optimization process continues and will be accompanied by improvements in the efficiency of the marketing channels. The optimized marketing intensity, both in the Germany-Austria-Switzerland region and internationally, should support the results contribution of the online travel placement sector as a whole.

D. Travel agency

The overall total of tourist bookings fell substantially compared to the comparable period in 2014, especially in the flight placement sector. The fall is primarily due to lower levels of bookings for international flights due to the need to make adjustments to product offerings, with the consequence that there are significant limitations on flight placements for certain flight products. In addition, the decline has been accelerated by the optimization of marketing expenditures in the Germany-Austria-Switzerland region and internationally. In the package travel agency the fall in booking numbers was moderate. The product portfolio remains largely unchanged, both nationally and internationally. Here we remain very broad-based and provide a wide range of travel services.

E. Marketing and key performance indicators

In Germany, our core market, we continue to concentrate our efforts on online marketing processes, which are significant drivers of sales. By efficient management of these processes and with a low marketing expense per booking we aim to maintain the booking volumes at a stable level.

The growth strategy in the French package tour market is also driven by the use of central online marketing channels. As a comparatively young market participant we continue to be confronted with a high marketing expense per booking. No further expansion of marketing efforts to additional international markets is planned at the current time.

Primary marketing performance indicators which are directly related to the marketing budget (visits and bookings) have behaved, and will continue to behave, in proportion to the changes to our marketing investment. There are no signs of a more than proportional fall. Key performance indicators which are not directly related to the marketing budget, such as conversion rate and page views, remain stable.

F. Results of operations

The Internet segment reports a fall in revenues for the first half-year compared to the first halfyear of the financial year 2014 (from EUR 13,881 thousand to EUR 7,957 thousand; or 42.7 %). This was accompanied by corresponding savings in marketing expenses, so that it was possible to generate a positive gross margin of EUR 2,400 thousand (first half-year 2014: EUR 2,568 thousand).

The Hotels business has not yet generated any revenues or made any significant contribution to results.

The operating result fell from EUR 1,839 thousand to EUR 1,164 thousand in the first halfyear, due to increased other operating expenses and personnel costs.

Interest expenses are primarily due to interest expenses incurred on the 7.5 % corporate bond.

As a result of the positive pre-tax result, tax expenses were recorded, consisting of EUR 384 thousand of current taxes, and a deferred tax expense from the reduction of deferred tax assets of EUR 288 thousand resulting from the use of tax losses carried forward.

These significant effects resulted in a result for the period of EUR 378 thousand. As a result, earnings per share fell from 0.27 EUR/share to 0.19 EUR/share.

G. Financial position and net assets

The balance sheet total increased from EUR 32,305 thousand at December 31, 2014 to EUR 33,367 thousand, although there has been a shift in the maturity structure of the balance sheet.

Non-current assets fell by EUR 2,597 thousand (17.7 %). This was primarily a result of an amendment made to the loan agreement with Unister Holding GmbH which requires an accelerated repayment of the loan to be repayable within one year. Consequently, open receivables are reported within current assets. On the other hand, further construction work on the Leipzig Ringmessehaus hotel project has taken place, resulting in increases to property, plant, and equipment of EUR 1,091 thousand.

Current assets increased compared to December 31, 2014. The increase primarily reflects the increase in receivables due from affiliated companies, which increased as a result of the amendment to the repayment due dates with Unister Holding GmbH. As the balance sheet total as a whole also increased in the same period, the share of current assets (including IFRS 5 assets) increased from 55 % to 64 %.

The EUR 158 thousand increase in cash and cash equivalents is primarily due to the receipt of loan repayment installments from Unister Holding GmbH (EUR 2,075 thousand) and to the positive operating cash flow. On the other hand, the cash flows include a payment of EUR 2,000 for a loan issued to LOET Trading AG for the purchase of a parcel of land (secured by mortgage), and payments for investments in property, plant, and machinery of EUR 835 thousand.

As a result of the positive net income for the period the negative revenue reserves fell further, so that total equity amounts to EUR 4,076 thousand and the equity ratio increased to 12.2 % (December 31, 2014: 11.4 %).

There has been a slight change in the capital structure on the liabilities side of the balance sheet. The share of long-term liabilities as a proportion of total capital amounted to 62 % (December 31, 2014: 71 %). This is primarily a result of the increase in short-term liabilities, and the increase in the balance sheet total.

H. Employees

Travel24.com AG employed fifteen employees at the June 30, 2015 balance sheet date (excluding the Management Board).

I. Events subsequent to the balance sheet date

The sale of the Cologne Perlengraben property is not yet complete at the date of publication. We expect to complete the transaction in the third quarter of 2015. A small profit on disposal is to be expected. From the Group's point of view, a successful sale will be reflected in the Hotels segment.

The request to call an extraordinary shareholders' meeting, made by Unister Holding GmbH in May to propose the removal and replacement of members of the Supervisory Board, was subsequently withdrawn by Unister Holding GmbH in early July 2015.

The Management Board, after considering legal advice, took all necessary measures to reject the call for an extraordinary shareholders' meeting and to inform the shareholders. The rejection of the call resulted in a small amount of expenses being incurred, which are reflected in the Travel24.com AG financial statements.

In August 2015 Travel24.com AG has severed the employment contracts of three Travel24.com France SAS employees working in the French online travel placement business. The employment contracts are terminated as of the end of August. The employee contracts were terminated in order to make further efficiency improvements in the international online travel placement business.

A member of the Supervisory Board has resigned from his position in August 2015, observing the appropriate legal notice period. The process of appointing a successor has been initiated without delay.

J. Opportunities and risk report

The importance of the internet as a booking medium continues to grow, enabling a general growth in online sales of travel and related travel services, although this primarily applies to companies which are market leaders. However, the competitive pressure remains very high because offerings are frequently homogeneous and readily comparable, as well as due to the pressure of relentless technical progress.

We do not expect to participate in this growth, which, if at all realizable, would only be possible with substantial additional funding, given the optimization of our marketing resources. We

continue to see opportunities in the budget hotel sector which is still registering strong growth. In comparison to the travel placement business the budget hotel sector is less vulnerable to changing technologies and less subject to short-term trends. Given the EBIT margins of up to 20 % which are achievable there, we see this as our growth and investment segment.

For the 2015 year as a whole, sales volumes are expected to be significantly lower than in the previous year. We are holding firm to our strategy of stabilizing results in the placement business, and as a result it is unavoidable that temporary falls in sales need to be taken into account. However, the falls in sales will only have a moderate effect on EBIT. For the year as a whole we expect an EBIT of EUR 2,400 thousand for both segments together.

For the planned budget hotel chain the time line and cost planning represent the biggest risk factor. Based on current planning, the first hotel in Leipzig will be opened in mid-2016. Delays have been due to contract negotiations taking longer than planned, and to complications concerning the construction site and the associated specialist civil engineering work. Currently, Travel24.com AG anticipates that the additional costs for the project as a whole will be low.

In addition, Travel24.com AG aims to ensure that developments and changing conditions are recognized early wherever possible. These include changes that affect customers, suppliers, and shareholders, and the impact of these on the Company's own risk profile and business planning. Where necessary the Management Board takes any necessary steps without delay to consider and initiate potential actions required.

Outlook

First and foremost, Travel24.com AG plans the speedy construction of the hotel in Leipzig with the completion of the project in 2016. We continue to expect that first revenues will be generated here in 2016.

In addition, we intend to drive forward our strategy of further optimizing and improving the efficiency of marketing investments made in our travel placement business, both in the Germany-Austria-Switzerland region and internationally. In the international online travel placement business, in future we will concentrate more on the French package travel business. The strategy for the remaining international activities in the online travel placement business will be reviewed and optimized in the coming months, looking in particular at revenue and EBIT developments in order to achieve an overall increased level of contribution stability.

Consolidated balance sheet

At June 30, 2015

	June 30, 2015	December 31, 2014
ASSETS	In euro	In euro
NON-CURRENT ASSETS
Intangible assets
Intangible assets purchased	4,231,184.60	4,231,184.60
TOTAL INTANGIBLE ASSETS	4,231,184.60	4,231,184.60
Property, plant, equipment
Land	1,086,323.62	1,086,323.62
Furniture, fixtures & office equipment	2,271.03	2,413.00
Construction in process	4,779,963.15	3,688,988.40
TOTAL PROPERTY, PLANT, & EQUIPMENT	5,868,557.80	4,777,725.02
Financial assets
Other Loans	2,000,000.00	0.00
Loans to related parties	0.00	5,600,000.00
TOTAL FINANCIAL ASSETS	2,000,000.00	5,600,000.00
Deferred tax assets	0.00	88,070.87
TOTAL NON-CURRENT ASSETS	12,099,742.40	14,696,980.49
CURRENT ASSETS
Receivables and other assets
Trade receivables	931,217.28	852,830.92
Receivables due from related companies	7,050,947.14	2,729,245.28
Other financial assets	146,621.16	2,438,217.27
Current tax assets	55,283.18	48,786.50
Other non-financial assets	1,955,475.70	570,161.42
TOTAL RECEIVABLES AND OTHER ASSETS	10,139,544.46	6,639,241.39
Cash and cash equivalents	1,160,249.22	1,001,863.27
TOTAL CURRENT ASSETS	11,299,793.68	7,641,104.66
Non-current assets held for sale	9,967,250.88	9,967,250.88
BALANCE SHEET TOTAL	33,366,786.96	32,305,336.03

	June 30,	December 31,
	2015	2014
EQUITY AND LIABILITIES	In euro	In euro
In euro
EQUITY
Subscribed capital	2,033,585.00	2,033,585.00
Capital reserve	2,913,974.00	2,913,974.00
Loss carried forw ard	-871,313.53	-1,248,951.18
Equity attributable to owners of the parent	4,076,245.47	3,698,607.82
TOTAL EQUITY	4,076,245.47	3,698,607.82
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities	20,527,617.94	22,846,856.05
Deferred tax liabilities	249,435.90	49,955.13
TOTAL NON-CURRENT LIABILITIES	20,777,053.84	22,896,811.18
CURRENT LIABILITIES
Tax liabilities	2,607,410.70	2,354,747.46
Provisions	929,146.62	819,762.36
Financial liabilities	1,311,450.50	620,143.00
Trade payables	562,045.74	699,495.88
Liabilities to related companies	1,317,694.12	181,029.19
Advance payments from customers	506,686.53	327,902.55
Other liabilities	1,279,053.44	706,836.59
TOTAL CURRENT LIABILITIES	8,513,487.65	5,709,917.03
TOTAL LIABILITIES	29,290,541.49	28,606,728.21
BALANCE SHEET TOTAL	33,366,786.96	32,305,336.03

Consolidated statement of comprehensive income

January 1, 2015 to June 30, 2015

	April 1 - June 30		January 1 - June 30
	2015 2014		2015	2014
	In euro	In euro	In euro	In euro
Revenue	3,462,615.70	6,071,052.09	7,956,857.79	13,880,979.52
Other operating income	19,989.92	24,153.87	43,240.72	33,221.33
Marketing expenses	-2,047,433.03	-4,201,555.85	-4,807,777.51	-9,749,460.63
Other revenue related expenses	-383,506.16	-912,611.38	-749,322.28	-1,563,937.58
Personnel expenses	-336,512.00	-195,520.10	-605,816.10	-411,952.14
Depreciation	-898.00	-8,011.62	-1,795.97	-8,011.62
Other operating expenses	-356,660.92	-169,418.79	-671,345.05	-341,485.54
Operational result	357,595.51	608,088.22	1,164,041.60	1,839,353.34
Interest income	126,522.84	48,210.25	268,864.00	119,874.48
Interest expenses	-374,973.40	-490,168.98	-911,950.71	-1,007,652.44
Financial result from reacquisition of financial instruments	527,741.74	0.00	527,741.74	0.00
Financial result	279,291.18	-441,958.73	-115,344.97	-887,777.96
Result before taxes	636,886.69	166,129.49	1,048,696.63	951,575.38
Tax expenses	-147,668.55	-73,884.35	-383,507.34	-73,884.35
Deferred taxes	-177,565.19	-65,014.62	-287,551.64	-332,912.18
Net income	311,652.95	27,230.52	377,637.65	544,778.85
Other comprehensive income	0.00	0.00	0.00	0.00
Comprehensive incom e	311,652.95	27,230.52	377,637.65	544,778.85
Attributable to ow ners of the parent	311,652.95	27,230.52	377,637.65	544,778.85
Attributable to non-controlling shareholders	0.00	0.00	0.00	0.00
Earnings per share in euro (basic and diluted)	0.15	0.01	0.19	0.27

Consolidated statement of cash flows

January 1, 2015 to June 30, 2015

		January 1 - June 30
		2015	2014
		In euro	In euro
	Cash flow from operating activities
Net income		377,637.65	544,778.85
			0
+	Income taxes	671,058.98	332,912.18
+ / -	Financial result	115,344.97	887,777.96
+ / -	Increase/decrease in provisions	109,384.26	-360,506.94
- / +	Increase/decrease in trade receivables and other assets w hich are not attributable to investing or financial activities	-5,317.50	-1,104,021.31
+ / -	Increase/decrease in trade payables and other liabilities w hich are not attributable to investing or financial activities	-329,480.76	1,325,023.74
-	Interest paid	-1,315.51	-404.51
+	Interest received	0.00	0.00
-	Taxes paid	-18,510.08	0.00
=	Cash flow from operating activities	918,802.01	1,625,559.97
-	Payments for investments in property, plant and equipment	-835,416.06	-335,883.07
-	Cash outflow s from loans issued	-2,000,000.00	0.00
+	Cash inflow s from loans repaid	2,075,000.00	0.00
=	Cash flow from investing activities	-760,416.06	-335,883.07
+	Receipts from the issue of bonds	0.00	955,000.00
=	Cash flow from financing activities	0.00	955,000.00
	Net changes in cash and cash equivalents	158,385.95	2,244,676.90
	Cash at the beginning of the period	1,001,863.27	1,325,517.41
	Cash at the end of the period	1,160,249.22	3,570,194.31

Consolidated statement of changes in equity

At June 30, 2015

	Outstanding shares	Subscribed capital	Capital reserve	Loss carried forw ard	Total equity
	Number	In euro	In euro	In euro	In euro
As of December 31, 2013	2,033,585	2,033,585.00	2,913,974.00	-1,669,957.51	3,277,601.49
Comprehensive income HY1 2014		0	0	544,778.85	544,778.85
As of June 30, 2014	2,033,585	2,033,585.00	2,913,974.00	-1,125,178.66	3,822,380.34
As of December 31, 2014	2,033,585	2,033,585.00	2,913,974.00	-1,248,951.18	3,698,607.82
Comprehensive income HY1 2015		0	0	377,637.65	377,637.65
As of June 30, 2015	2,033,585	2,033,585.00	2,913,974.00	-871,313.53	4,076,245.47

Notes to the interim financial statements

I. General information

These condensed interim consolidated financial statements of Travel24.com AG were prepared in accordance with International Financial Reporting Standards (IFRS) and the interpretations of the IFRS Interpretations Committee (IFRIC/SIC) as applicable and binding in the European Union. In particular they comply with requirements applicable to interim reporting in accordance with IAS 34.

The semi-annual financial statements as of June 30, 2015 have neither been audited in accordance with Section 317 of the German Commercial Code (HGB) nor reviewed by auditors.

The comparative figures for the balance sheet at December 31, 2014 are the opening balances at January 1, 2015, based on unaudited consolidated financial statements for 2014.

They are prepared in euros (EUR) since the majority of the group transactions are realized in this currency. All amounts are reported in thousand euros (EUR thousand) unless otherwise stated.

Amounts are rounded in accordance with general commercial practice. Rounding differences may occur.

Correction of error:

Our original assumptions in the first half-year of 2014 were that the agreement for the sale of entitlements to insurance commissions for new contracts entered into with the Geld.de Group would result in reportable revenues in accordance with IAS 18. However, we subsequently revised this view in the nine-month report for 2014. There is not a high probability that cash inflows can be generated from these receivables. Accordingly, our assessment of the contract in the first half-year of 2014 was incorrect, and it is necessary to make a correction to the comparative figures presented with the semi-annual financial report 2015.

As a result, revenues for the first half-year of the financial year 2014 are corrected to EUR 13,881 thousand (previously reported: EUR 14,983 thousand). The correction made to reported revenues also affects operating results (corrected first half-year 2014: EUR 1,839 thousand; previously reported first half-year 2014: EUR 3,073 thousand), the result before tax (corrected first half-year 2014: EUR 952 thousand; previously reported first halfyear 2014: EUR 2,053 thousand), and the associated tax charge (corrected first half-year 2014: EUR 407 thousand; previously reported first half-year 2014: EUR 667 thousand). The resulting corrected net income for the first half-year of 2014 is EUR 545 thousand (previously reported first half-year 2014: EUR 1,386 thousand). The revised earnings per share (basic and diluted) is EUR 0.27 (previously reported first half-year 2014: EUR 0.68).

The retained loss brought forward in the statement of changes in equity was amended to EUR 1,125 thousand as a result of the adjustments made to the comparative figures in the statement of comprehensive income (previously reported: EUR 284 thousand), and the reported total equity at June 30, 2014 was adjusted (corrected first half-year 2014: EUR 3,822 thousand; previously reported first half-year 2014: EUR 4,664 thousand). In addition, the profit for the period and income tax expense report in the cash flow statement were adjusted to reflect the changes described above. The amount of increase reported for the position "Trade receivables and other assets which are not attributable to investing or financial activities" was corrected.

II. Accounting and measurement principles

II.1 Accounting basis

These condensed interim consolidated financial statements of Travel24.com AG were, with the exception of the initial application of new or amended standards or interpretations, prepared under the same accounting and measurement principles that were applied in the preparation of the IFRS consolidated financial statements of Travel24.com AG as of December 31, 2014.

For the purposes of presenting the (condensed) interim consolidated statement of comprehensive income, a total figure is shown for the total of marketing and personnel expenses. Accordingly, these condensed consolidated financial statements do not include all of the disclosures that would be required in a set of annual consolidated financial statements prepared at year end, and therefore they should be read together with the consolidated financial statements for the year ended December 31, 2014. This particularly applies to the section entitled "Use of estimates".

In preparing interim financial statements, the Management Board must necessarily make the best possible estimates and assumptions, based on current information, which have an effect on assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet date, as well as on income and expenses reported in the period. The actual result of later events, when they subsequently occur, may differ from those estimates.

II.2 Initial application of new or amended standards in financial year 2015

We refer to the disclosures made in the consolidated financial statements as of December 31, 2014. The application of the new standards has no significant effect on the financial statements of Travel24 for the first half-year.

II.3 Scope of consolidation

All subsidiaries are included in these interim consolidated financial statements. There are no joint ventures or associated companies.

There have been no changes in the scope of the consolidation since December 31, 2014.

IV. Notes to the consolidated balance sheet

The balance sheet total increased in the reporting period. The carrying value of construction in progress and land included in non-current assets increased by EUR 1,091 thousand as a result of continuing construction activities. At the same time the non-current element of the loans to affiliated companies was transferred to current assets as a consequence of the amendment to the loan agreement. In addition, the deferred tax balance fell due to the positive pre-tax result and the associated reduction in the tax losses carried forward.

Current assets increased by EUR 3,659 thousand in total, primarily due to the increase in receivables due from affiliated companies as a consequence of the amendment to the loan agreement with Unister Holding GmbH. The loan receivables, which had previously been reported as non-current assets, are now reported as current assets. On the other hand, the receivables due from LOET Trading AG have been settled following the repurchase of bond liabilities.

Other non-financial assets largely represent receivables from the tax authorities, particularly for value added taxes, as was the case in the consolidated financial statements 2014.

Non-current liabilities fell by EUR 2,120 thousand compared to the consolidated financial statements 2014. The significant element of this was the repurchase (and transfer into the Travel24 portfolio) of bond liabilities issued under the bond sale agreement, with a nominal amount of EUR 4,161 thousand. As a result, only 20,839 bonds are regarded as issued as at June 30, 2015.

In current liabilities, the other liabilities increased from EUR 707 thousand to EUR 1,279 thousand, and current financial liabilities increased from EUR 620 thousand to EUR 1,311 thousand. As in previous periods, current financial liabilities exclusively comprise the interest payment obligations resulting from the bonds, which increase successively until they become due for payment in September 2015. Other liabilities primarily include value added tax and liabilities from the timing of customer payments to be forwarded. Liabilities to affiliated companies exclusively include liabilities payable to AERUNI GmbH.

V. Notes to the consolidated statement of comprehensive income

Revenues are exclusively revenues from commissions, of which EUR 3,631 thousand (first half-year 2014: EUR 5,027 thousand) are in respect of travel services, a total of EUR 3,163 thousand (first half-year 2014: EUR 8,086 thousand) are in respect of flight services, and EUR 1,162 thousand (first half-year 2014: EUR 768 thousand) relate to insurance services. Of the total reported revenues earned in the first half-year of the financial year 2015, EUR 6,498 thousand were earned in the Germany-Austria-Switzerland region and EUR 1,459 thousand internationally (thereof in French website portals: EUR 1,325 thousand).

Despite lower revenues compared to the first half-year of 2014, a positive operating result was generated (EUR 1,164 thousand; previous year: EUR 1,839 thousand) with a gross margin of EUR 2,400 thousand (previous year: EUR 2,568 thousand).

The position "Financial result from reacquisition of financial instruments" included within financial results represents the income generated from the reacquisition of own bonds that were reported as issued for accounting purposes as at December 31, 2014 and legally transferred to Travel24 in April under a bond repurchase agreement.

Due to partial use of losses brought forward, the tax expense only amounts to EUR 384 thousand in the first half-year of 2015 despite a positive pre-tax result. However, the reduction of the tax loss carried forward resulted in a deferred tax expense (EUR 288 thousand).

VI. Segment reporting

The following segment information is presented based on the Group's two segments, the Internet segment (the parent Company's only segment) and the Hotels segment (which is in the start-up phase).

Segment revenues

The revenues totaling EUR 7,957 thousand are wholly attributable to the Internet segment. There were no revenues between the two segments.

Segment result (earnings before interest and income taxes)

Of the Group's result before interest and income taxes (operating result) for the first half-year of 2015 totaling EUR 1,164 thousand (previous year: EUR 1,839 thousand), a total of EUR 1,363 thousand (previous year: EUR 1,863 thousand) is attributable to the Internet segment and EUR -199 thousand (previous year: EUR -24 thousand) is attributable to the Hotels segment.

The reconciliation of the sum of the segment results (EUR 1,164 thousand) to the consolidated result before taxes can be directly obtained by reference to the consolidated statement of comprehensive income.

VII. Significant transactions with related parties

We refer to the presentation in the 2014 annual report for a description of the nature of the respective transactions. Approximately 58 % of revenues and approximately 99 % of marketing expenses result from transactions with Unister Travel Betriebsgesellschaft mbH.

VIII. Events subsequent to the balance sheet date

The sale of the Cologne Perlengraben property is not yet complete at the date of publication. We expect to complete the transaction during the third quarter of 2015. A small profit is to be expected on disposal. From the Group's point of view, a successful sale will be reflected in the Hotels segment.

The request to call an extraordinary general shareholders' meeting made by Unister Holding GmbH in May to propose the removal and replacement of members of the Supervisory Board was subsequently withdrawn by Unister Holding GmbH in early July 2015.

After considering legal advice, the Management Board took all necessary measures to reject the call for an extraordinary general shareholders' meeting and to inform the shareholders. The rejection of the call resulted in a small amount of expenses being incurred, which are reflected in the Travel24.com AG financial statements.

In August 2015 Travel24.com AG has severed the employment contracts of three Travel24.com France SAS employees working in the French online travel placement business. The employment contracts were terminated as of the end of August. The employee contracts were terminated in order to make further efficiency improvements in the international online travel placement business.

Investor relations

Share capital of Travel24.com AG

The total number of the voting rights in Travel24.com AG remained unchanged at 2,033,585 at the end of the first half-year.

Shareholdings of members of the Management and Supervisory Boards

As at the balance sheet date of June 30, 2015, members of the Management and Supervisory Boards held shares in the Company as follows:

		Shares	Options
Managing Board	Armin Schauer	0	0
Supervisory Board
	Daniel Kirchhof	150	0
	Oliver Schilling	24,556	0
	Detel Kurt Schubert	0	0

Responsibility statement by the legal representative

I confirm that to the best of my knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the Group's assets, financial position, and results of operations. Also, I confirm that the Group's interim management report includes a true and fair description of business developments, including the results of the business and the position of the Group. The material opportunities and risks associated with the expected development of the Group for the remaining period of the financial year have been described.

Leipzig, August 2015

The Management Board of Travel24.com AG

Armin Schauer

Reporting calendar

August 31, 2015 Publication of the semi-annual report 2015

October 29, 2015 (preliminary date) Analyst conference

October 30, 2015 (preliminary date) Annual general meeting

November 30, 2015 Publication of the quarterly report Q3 2015

April 30, 2016 Publication of the Annual Report 2015

Legal notices

Published by

Travel24.com AG Katharinenstraße 1–3 04109 Leipzig

Security identification numbers of the shares

WKN: A0L 1NQ ISIN: DE000A0L 1NQ8

Security identification numbers of the bonds

WKN: A1PGRG DE 000 A1PGRG2

Telephone: +49 - (0) 341 - 35572 701 Fax: +49 - (0) 341 - 35572 799

www.travel24.com

Contact

Travel24.com AG Investor relations

Armin Schauer Katharinenstraße 1–3 04109 Leipzig Telephone: +49 - (0) 341 - 35572 701 E-Mail: ir@travel24.com Internet: www.travel24.com

Registration court: Leipzig HRB 25538