11 88 0 Solutions AG — Interim / Quarterly Report 2021

Nov 9, 2021

FOR THE 3RD QUARTER 2021

Financial Key Figures

Key Figures of 1188 0 Solutions Group at a glance

9M 2021	9M 2020	Variance absolute	Variance in percent
42.9	36.5	6.4	17.6%
4.1	2.3	1.8	77.3%
-0.6	-1.3	0.6	51.3%
33.4	27.3	6.1	22.3%
4.0	2.4	1.6	66.2%
9.5	9.2	0.3	3.6%
0.1	-0.1	0.2	>100%
29.0	31.4	-2.4	-7.7%
2.2	3.7	-1.4	-39.5%
9.1	9.8	-0.6	-6.3%
31.6%	31.1%
2.9	2.5	0.4	17.8%
-3.1	-2.3	-0.8	-33.7%
-1.3	0.3	-1.6	> -100 %
-1.4	0.5	-1.9	>-100 %
-0.02	-0.07	0.05	71.4%
1.52	1.42	0.10	7.0%
37.9	35.4	2.5	7.0%
565	615	-50	-8.1%

1 Earnings before interest, tax, depreciation and amortisation

2 Comparison value as of 31 December 2020

3 Portfolio of cash and cash equivalents as well as financial assets at fair value through profit or loss

4 Operating cash flow plus cash flow from investing activities plus cash flow from financing activities

5 Xetra-closing prices as of 30 September

6 Headcounts as of 30 September (excluding the Management Board, trainees and dormant employment contracts)

For mathematical reasons, rounding differences amounting to +/- one unit (€, % etc.) may occur. In favour of a correct mathematical presentation, such differences are consciously accepted.

Content

Course of business, material events within the interim reporting period	04
Financial situation	05
Segment report	06
Updated report on expected developments	06
Significant events after the end of the interim reporting period	06
Comparability of disclosures	07
Consolidated income statement (IFRS)	09
Consolidated statement of comprehensive income (IFRS)	10
Consolidated statement of financial position (IFRS)	11
Consolidated statement of cash flows (IFRS)	13
Consolidated statement of changes in equity (IFRS)	15
Corporate structure 11880 Solutions Group	16
Imprint	16

Course of business, material events within the interim reporting period

The project to replace the entire IT system cleared another important hurdle at the start of the third quarter of the 2021 financial year as the new IT system was successfully launched after almost two years of development and intensive staff training. By completing this project, 11 88 0 Solutions AG has laid the foundations for faster growth.

We expanded our range of products for small and medium-sized corporate customers to include Facebook marketing campaigns, while a test phase ahead of the product's market launch is already showing very promising results. We also continued to optimise the performance of all portals in the 11880.com family in order to achieve the best possible figures in Google's Web Vitals. Google is establishing a standardised basis for evaluating the user experience of websites under the name Web Vitals. As these figures will become increasingly significant in the future, they are also key figures for the further growth of our company.

The FAIRRANK online agency acquired in September 2020 is currently being repositioned for a successful future. This involves redefining business processes in both the product and sales divisions in order to offer customers greater efficiency and transparency. The aim is to considerably enhance the potential of the agency going forward in order to achieve sustainable growth.

In the Directory Assistance segment, we gained a new customer in the call centre third-party business from the e-sharing sector in the third quarter of 2021. We are also expecting to sign a contract with another provider in this industry during the fourth quarter. Long-standing major customers enabled us to grow order volumes further in the housing sector.

Financial situation

Results of operations

The results of the Group companies FAIRRANK GmbH and Seitwert GmbH, which were first consolidated as of 30 September 2020, have been recognised since October 2020. The comparative figures for the previous year in the income statement therefore do not include the figures for these two companies. However, the prior-year figures for the two companies are included in the statement of financial position.

In the first nine months of 2021, the 11 88 0 Group generated consolidated revenues of EUR 42.9 million (previous year: EUR 36.5 million), which represents an increase of EUR 6.4 million (17.6 %) compared with the prior-year period. Adjusted for the share of revenues attributable to FAIRRANK GmbH and Seitwert GmbH, which were only acquired in September 2020, revenue increase was approximately 9 %. Further information on the segment breakdown and changes is provided in the section entitled "Segment report".

The cost of revenues increased by EUR 3.4 million year-on-year, amounting to EUR 24.1 million at the end of the third quarter. This was due to the EUR 2.4 million share attributable to FAIRRANK GmbH and Seitwert GmbH, which were only consolidated for the first time at the end of September 2020, and, more importantly, to an increase in variable costs for third-party services used in line with the higher revenue generated in both segments.

In the first nine months of 2021, the Group incurred selling and distribution costs of EUR 12.9 million (previous year: EUR 11.4 million). The increase is mainly attributable to the share of the two new Group companies mentioned above that were added in September 2020 and to higher amortisation of capitalised sales commissions.

General administrative expenses for the first nine months amounted to EUR 6.3 million (previous year: EUR 6.1 million). The increase is mainly due to the cost share of FAIRRANK GmbH and Seitwert GmbH included in this figure.

In the first nine months of 2021, consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 4.1 million, which is a year-on-year improvement of EUR 1.8 million.

Earnings after taxes improved considerably year-on-year at EUR -0.6 million (previous year: EUR -1.3 million). Significantly higher revenues compared to the same period of the previous year as well as a disproportionally low increase in costs, mainly in sales, were the reasons for the positive performance in earnings.

Net assets and financial position

Capital expenditures

The Group invested EUR 3.5 million in the first three quarters of 2021 (previous year: EUR 3.2 million). Total capital expenditures mainly include capitalised sales commission of EUR 2.8 million (previous year: EUR 2.8 million). The figures for both the current and previous financial year include the right-of-use assets capitalised in accordance with IFRS 16.

Statement of financial position

As of 30 September 2021, total assets amounted to EUR 29.0 million, showing a decrease of EUR 2.4 million compared with 31 December 2020 (31 December 2020: EUR 31.4 million).

On the assets side, current assets fell from EUR 14.1 million as of 31 December 2020 to EUR 12.8 million as of 30 September 2021. This decline is primarily attributable to a decrease in cash. Financial assets measured at fair value (investment funds) totalled EUR 0.6 million as of the reporting date (31 December 2020: EUR 0.6 million). Trade receivables amounting to EUR 9.6 million remain unchanged compared with 31 December 2020.

Non-current assets as of the reporting date decreased by EUR 1.1 million from EUR 17.3 million to EUR 16.2 million compared with 31 December 2020. This decrease resulted mainly from a reduction in capitalised right-of-use assets pursuant to IFRS 16. The volume of internally generated intangible assets also declined.

On the liabilities side, current liabilities fell by EUR 1.2 million to EUR 13.1 million (31 December 2020: EUR 14.3 million). This decrease resulted mainly from a reduction in other current liabilities.

Non-current liabilities totalled EUR 6.7 million as of the reporting date (31 December 2020: EUR 7.4 million). The decrease is mainly attributable to a reduction in non-current lease liabilities pursuant to IFRS 16 as planned.

Equity fell by EUR 0.6 million to EUR 9.1 million (31 December 2020: EUR 9.8 million) due to the net loss for the period.

Cash flow & financing

Cash flow from operating activities as of 30 September 2021 amounted to EUR 2.9 million, compared to EUR 2.5 million during the prior-year period.

The cash outflow from investing activities was EUR -3.1 million, up EUR 0.8 million compared with the prior-year period. In the previous year, the cash transfer from the first-time consolidation of FAIRRANK in the amount of EUR 0.9 million had a positive effect on cash flows from investing activities.

Cash flow from financing activities amounted to EUR -1.3 million in the first nine months of the year (previous year: EUR 0.3 million). The change mainly results from the cash capital increase implemented in the previous year.

Cash holdings

Cash holdings (cash and cash equivalents and current financial assets measured at fair value through profit or loss at the end of the period) declined from EUR 3.7 million to EUR 2.2 million compared with 31 December 2020. The decrease in cash holdings by EUR -1.4 million (net cash flow) corresponds to the sum total of the cash flow from operating activities of EUR 2.9 million, the cash flow from investing activities of EUR -3.1 million and the cash flow from financing activities in the amount of EUR -1.3 million.

Segment report

At EUR 33.4 million, revenues in the Digital segment were up considerably year-on-year (previous year: EUR 27.3 million). This result is due to the excellent sales performance in the prior year and in the first half of 2021 and to the additional digital revenue generated in the wake of the FAIRRANK acquisition. The Digital business accounted for around 78 % of total revenues in the third quarter of 2021 (previous year: 75 %). Nine-month earnings (EBITDA) as of the reporting date were EUR 4.0 million (previous year: EUR 2.4 million).

The Directory Assistance segment accounted for EUR 9.5 million of total revenues (previous year: EUR 9.2 million). Ninemonth earnings (EBITDA) were EUR 0.1 million (previous year: EUR -0.1 million).

Updated report on expected developments

Consolidated revenues as well as consolidated EBITDA and cash holdings at Group level are developing in line with expectations.

Significant events after the end of the interim reporting period

On 25 October 2021, 11 88 0 Solutions AG announced that it had been the victim of a criminal cyber attack. The targeted hack primarily impacted our internal IT infrastructure. It was still possible to access the 11880.com online directory, our specialist portals, the werkenntdenBESTEN.de search engine and the 11880 directory assistance service. Based on the latest information, customer data was also unaffected by the attack. 11 88 0 Solutions AG immediately began setting up new IT infrastructure with the support of internationally renowned specialists. Within a few days, large parts of our business were able to continue operating without significant restrictions for our customers. As a result, 11 88 0 Solutions AG does not currently believe that it will need to adjust the revenue and EBITDA forecasts issued at the start of the year.

The global spread of the coronavirus (COVID-19) continues to represent an additional element of uncertainty with regard to the economic impact on the 11 88 0 Solutions AG Group as well. At the time of preparing the financial statements, the Company's business model continues to prove resilient. Both risks and opportunities arise for the remainder of the 2021 financial year, but their occurrence will depend on how the pandemic develops. On the one hand, customer behaviour with regard to contract fulfilment still cannot be reliably predicted for the coming months; on the other hand, however, opportunities arise for the Company triggered by the ever increasing digitalisation trend.

Comparability of disclosures

The 9-month report for 2020 and the consolidated financial statements for the year ended 31 December 2020 are available on the 11 88 0 Solutions AG website at: https://ir.11880.com/ finanzberichte .

Essen, 03 November 2021

The Management Board

Third Quarter Report 2021 11 88 0 Solutions Group 8

Content

Consolidated income statement (IFRS)	09
Consolidated statement of comprehensive income (IFRS)	10
Consolidated statement of financial position (IFRS)	11
Consolidated statement of cash flows (IFRS)	13
Consolidated statement of changes in equity (IFRS)	15
Corporate structure 11880 Solutions Group	16
Imprint	16

Consolidated income statement (IFRS)	Quarterly Report		9-Months Report
	(unaudited)		(unaudited)
in EUR thousand	01.07 – 30.09.2021	01.07 – 30.09.2020	01.01 – 30.09.2021	01.01 – 30.09.2020
Revenues	14,161	12,526	42,919	36,487
Cost of revenues	-7,819	-7,270	-24,137	-20,766
Gross profit	6,342	5,256	18,783	15,721
Selling and distribution costs	-4,403	-3,869	-12,904	-11,381
General administrative expenses	-1,950	-1,858	-6,347	-6,143
Other operating expense	-10	0	-33	-5
Operating income (loss)	-20	-472	-501	-1,807
Interest income	1	0	6	6
Interest expense	-6	-2	-16	-5
Interest expenses for rights-of-use (IFRS 16)	-66	-75	-203	-234
Gain (loss) from marketable securities	2	17	-10	11
Gain (loss) from foreign currency translation	0	-1	0	-1
Financial income (loss)	-69	-60	-222	-222
Income (loss) before income tax	-89	-532	-723	-2,029
Deferred income tax	86	265	112	724
Income tax	86	265	112	724
Net income (loss)	-3	-266	-611	-1,305
Attributable to:
Owners of the parent	-3	-266	-611	-1,305
Earnings per share for net income (loss) for the reporting period attributable to ordinary equity holders of the parent (in euro)	0.00	-0.01	-0.02	-0.07

Consolidated statement of comprehensive income (IFRS)	Quarterly Report (unaudited)		9-Months Report (unaudited)
in EUR thousand	01.07 – 30.09.2021	01.07 – 30.09.2020	01.01 – 30.09.2021	01.01 – 30.09.2020
Net income (loss)	-3	-266	-611	-1,305
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss	0	0	0	0
Items that can be reclassified subsequently to profit or loss	0	0	0	0
Other comprehensive income (loss) after tax	0	0	0	0
Total comprehensive income (loss)	-3	-266	-611	-1,305
Attributable to:
Owners of the parent	-3	-266	-611	-1,305

Consolidated statement of financial position (IFRS)

in EUR thousand	30 September 2021	30 September 2020	31 December 2020
ASSETS	(unaudited)	(unaudited)
Current assets
Cash and cash equivalentes	1,484	4,602	2,922
Restricted cash	134	67	134
Trade accounts receivable	9,643	9,932	9,614
Current tax assets	5	4	4
Financial assets at fair value through profit or loss	600	594	610
Other financial assets	214	183	180
Other current assets	725	776	663
Total current assets	12,804	16,157	14,126
Non-current assets
Goodwill	3,717	3,959	3,717
Intangible assets	6,310	6,201	6,666
Property and equipment	864	1,065	1,034
Capitalized rights-of-use (IFRS 16)	4,780	5,012	5,360
Other non-current assets	483	370	483
Total non-current assets	16,153	16,607	17,259
Total assets	28,957	32,764	31,385

in EUR thousand	30 September 2021	30 September 2020	31 December 2020
LIABILITIES AND EQUITY	(unaudited)	(unaudited)
Current liabilities
Trade accounts payable	404	1,644	713
Accrued liabilities	5,667	5,329	5,458
Provisions	0	386	0
Short-term leasing liabilities (IFRS 16)	1,405	1,344	1,541
Other current liabilities	5,636	6,040	6,545
Total current liabilities	13,112	14,743	14,256
Non-current liabilities
Provisions	758	969	839
Provisions for retirement benefits	581	477	581
Other non-current liabilities	609	750	656
Long-term leasing liabilities (IFRS 16)	4,220	4,487	4,653
Deferred tax liabilities	536	488	648
Total non-current liabilities	6,704	7,170	7,377
Total liabilities	19,816	21,913	21,633
Equity
Share capital	24,915	24,915	24,915
Additional paid in capital	34,473	34,498	34,473
Retained earnings	-49,851	-48,233	-49,240
Other components of equity	-397	-330	-397
Equity attributable to owners of the parent	9,141	10,851	9,752
Total equity	9,141	10,851	9,752
Total liabilities and equity	28,957	32,764	31,385

Consolidated statement of cash flows (IFRS)

in EUR thousand	01.01. – 30.09.2021	01.01. – 30.09.2020
	(unaudited)	(unaudited)
Cash flow from operating activities
Income (loss) before income tax	-723	-2,029
Adjustments for:
Amortisation and impairment of intangible assets	3,365	3,081
Depreciation and impairment of right-of-use assets IFRS 16	1,035	840
Depreciation and impairment of property and equipment	243	206
Gain (loss) on disposal of property an equipment	1	5
Interest income	-6	0
Interest expense	219	235
Gain (loss) from marketable securities	10	-11
Gain (loss) from foreign currency translation	0	-1
Changes in valuation allowance for trade accounts receivable	430	151
Impairment of other non-current assets	192	114
Changes in non-current provisions	-81	323
Changes in non-current financial and other assets	-192	-267
Cash inflow before changes in operating assets and liabilities	4,493	2,647
Changes in operating assets and liabilities:
Trade accounts receivable	-460	-1,077
Other current asset	-95	-120
Trade accounts payable	-309	575
Accrued expenses and other liabilities	-712	450
Income taxes received / paid	-1	0
Cash inflows from operating activities	2,916	2,475

in EUR thousand	01.01. – 30.09.2021	01.01.–30.09.2020
Cash flow from investing activities	(unaudited)	(unaudited)
Purchase of intangible assets excl. customer contracts	-224	-333
Purchase of customer contracts with contract period > 1 year	-2,786	-2,767
Purchase of property and equipment	-75	-134
Interest received	5	-6
Cash transfer from initial consolidation FAIRRANK	0	937
Cash outflows from investing activities	-3,080	-2,303
Cash flow from financing activities
Interest paid	-13	-1
Payments from the repayment of liabilities to banks	-47	0
Interest expenses for leases in accordance with IFRS 16	-204	-234
Payments from the repayment of lease liabilities (IFRS 16)	-1,010	-800
Proceeds from issue of new shares	0	1,375
Cash outflows / cash inflows in financing activities	-1,274	340
Change in cash	-1,438	511
Cash at the beginning of the reporting period	2,922	4,090
Cash at the end of the reporting period	1,484	4,602
Cash and cash equivalentes as well as financial assets at fair value through profit or loss at the end of reporting period	2,218	5,263

Consolidated statement of changes in equity (IFRS)

		Equity attributable to owners of the parent
in EUR thousand	Share capital	Additional paid in capital	Retained earnings	Other components of equity	Total equity
Balance at January 1, 2021	24,915	34,473	-49,240	-397	9,752
Net income (loss)	–	–	-611	–	-611
Other comprehensive income (loss)	0	0	0	0	0
Total comprehensive income (loss)	0	0	-611	0	-611
Balance at September 30, 2021	24,915	34,473	-49,851	-397	9,141
Balance at January 1, 2020	21,022	33,598	-46,927	-330	7,363
Net income (loss)	–	–	-1,305	–	-1,305
Other comprehensive income (loss)	0	0	0	0	0
Total comprehensive income (loss)	0	0	-1,305	0	-1,305
Issue of new shares	3,893				3,893
Agio		973			973
Transaction costs		-107			-107
Tax effect thereon		34			34
Balance at September 30, 2020	24,915	34,498	-48,232	-330	10,851

Corporate Structure 11 88 0 Solutions Group

11 88 0 Solutions AG ESSEN, GERMANY

11 88 0 Internet Services AG ESSEN, GERMANY 100 %

WerWieWas GmbH ESSEN, GERMANY 100 %

FAIRRANK GmbH COLOGNE, GERMANY 100 %

Seitwert GmbH COLOGNE, GERMANY 100 %

Imprint

Contact

Investor Relations Phone: +49 (201) 8099-188, Mail: investor.relations@11880.com

Imprint

In charge of 11 88 0 Solutions AG, Hohenzollernstr. 24, 45128 Essen www.11880.com

11 88 0 Solutions AG · Hohenzollernstr. 24 · 45128 Essen