11 88 0 Solutions AG — Interim / Quarterly Report 2021

May 11, 2021

FOR THE 1ST QUARTER 2021

Financial Key Figures

Financial key figures of 1188 0 Solutions Group at a glance

in EUR million	3M 2021	3M 2020	Variance absolute	Variance in percent
Revenues and earnings 11880 Solutions Group
Revenues	14.4	12.1	2.3	19.0%
EBITDA1	0.9	0.4	0.5	>100%
Net loss	-0.7	-0.7	0.0	0.0%
Details segments
Revenues Digital	11.0	9.0	2.0	22.1%
EBITDA1 Digital	0.9	0.4	0.5	>100%
Revenues Directory Assistance	3.3	3.0	0.3	9.7%
EBITDA1 Directory Assistance	0.0	0.0
Statement of financial position2
Total assets	30.9	31.4	-0.5	-1.5%
Cash and cash equivalents3	3.2	3.7	-0.5	-13.1%
Equity	9.0	9.8	-0.7	-7.2%
Equity ratio	29.3%	31.1%
Cash flow
Cash flow from operating activities	1.1	-0.7	1.8	>100%
Cash flow from investing activities	-1.2	-1.1	-0.1	-10.1%
Cash flow from financing activities	-0.4	-0.3	-0.1	-18.6%
Net Cash flow4	-0.5	-2.1	1.6	77.2%
Key figures for the 11880 share
Earnings per share (in EUR)	-0.03	-0.04	0.01	25.0%
Share price (in EUR)5	1.49	1.18	0.31	26.3%
Market capitalisation	37.1	24.8	12.3	49.7%
Other KPIs
Number of employees6 group	586	598	-12	-2.0%

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 31 March

6 Headcounts as of 31 March (excluding the Managment 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	04
Financial situation	05
Segment report	06
Updated report on expected developments	06
Significant events after the end of the interim reporting period	07
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	17

3

Course of business, material events

11 88 0 Solutions AG made a positive start to the new 2021 financial year despite the ongoing restrictions prompted by the coronavirus pandemic. Including FAIRRANK GmbH, the company now has 45,523 contract customers.

At operating level, several important projects were implemented at the start of the year that will be vital for success in 2021. Firstly, product management developed a new site for business owners focusing on search engine marketing. The site provides practical tips on how business owners can promote their products and services efficiently with 11 88 0 campaigns on our major partner search engines Google and Bing. The product MEIN SEO, which was developed together with FAIRRANK GmbH and launched in the fourth quarter of 2020 and with which even smaller companies can conduct very efficient search engine marketing, is now supported by an additional information portal.

The Redlight Guide, the specialist portal for the erotic industry, was also completely redesigned. After a significant increase in traffic during the last few months of lockdown, a well-known industry expert is now providing content updates and personal tips to ensure that interest in the portal continues to rise.

In the Directory Assistance segment, the Company gained three new customers in the call centre third-party business from the e-sharing sector for whom 11 88 0 employees are now processing customer service calls.

The independent experts from the Top Employers Institute, the world's leading institute for certifying exceptional employment conditions, named 11 88 0 Solutions AG as a Top Employer for the second successive year in 2021. The Institute assesses and rates all areas of human resources management and corporate culture. This prestigious award will provide significant support for our recruitment efforts.

Financial situation

Results of operations

In the first three months of 2021, the 11 88 0 Group generated consolidated revenues of EUR 14.4 million (previous year: EUR 12.1 million), which represents an increase of EUR 2.3 million (19.0 percent) compared with the prior-year period. Further information on the segment breakdown and changes is provided in the section entitled "Segment report".

The cost of revenues increased by EUR 1.3 million year-on-year, amounting to EUR 8.3 million at the end of the first quarter. This was due to the EUR 0.9 million share attributable to FAIRRANK GmbH and Seitwert GmbH, which were consolidated for the first time at the end of September 2020, and to an increase in variable costs in line with the corresponding revenue generated in connection with the cooperation with FRED 11811-Auskunft, which has been in place since May 2020.

In the first quarter of 2021, the Group incurred selling and distribution costs of EUR 4.1 million (previous year: EUR 3.9 million). The increase is mainly attributable to the share of the two new Group companies mentioned above that were added in September 2020.

General administrative expenses for the first three months amounted to EUR 2.6 million (previous year: EUR 2.1 million). In addition to the share of FAIRRANK GmbH and Seitwert GmbH amounting to EUR 0.2 million, slightly higher consulting costs contributed to the increase in this item.

In the first three months of 2021, consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 0.9 million, which is a year-on-year improvement of EUR 0.5 million. This improvement results primarily from the significant increase in revenue.

Earnings after taxes remained unchanged year-on-year at EUR -0.7 million.

Net assets and financial position

Capital expenditures

The Group invested EUR 1.2 million in the first quarter of 2021 (previous year: EUR 1.1 million). Total capital expenditures mainly include capitalised sales commission of EUR 1.1 million (previous year: EUR 0.9 million).

Statement of financial position

As of 31 March 2021, total assets amounted to EUR 30.9 million, showing a decrease of EUR 0.5 million compared with 31 December 2020 (31 December 2020: EUR 31.4 million).

On the assets side, current assets fell marginally from EUR 14.1 million as of 31 December 2020 to EUR 14.0 million as of the reporting date. 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 0.3 million from EUR 17.3 million to EUR 16.9 million compared with 31 December 2020, mainly as a result of the depreciation of capitalised right-of-use assets.

On the liabilities side, current liabilities increased by EUR 0.4 million to EUR 14.6 million (31 December 2020: EUR 14.3 million). This increase is mainly due to a higher level of trade accounts payable as of the reporting date compared with 31 December 2020.

Non-current liabilities totalled EUR 7.2 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 as planned.

Equity decreased by EUR 0.7 million to EUR 9.0 million (31 December 2020: EUR 9.8 million) due to the net loss for the period.

Cash flow & financing

Cash flow from operations as of 31 March 2021 amounted to EUR 1.1 million, compared to EUR -0.7 million during the prior-year period.

The cash outflow from investing activities was EUR 1.2 million, up only slightly by EUR 0.1 million compared with the prior-year period. The increase is significantly influenced by higher payments for sales commissions compared with the previous year.

Cash flow from financing activities amounted to EUR -0.4 million in the first three months of the year (previous year: EUR -0.3 million).

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 3.2 million compared with 31 December 2020. The decrease in cash holdings by EUR 0.5 million (net cash flow) corresponds to the sum total of the cash flow from operations of EUR 1.1 million, the cash flow from investing activities of EUR -1.2 million and the cash flow from financing activities in the amount of EUR -0.4 million.

Segment report

At EUR 11.0 million, revenues in the Digital segment were up considerably year-on-year (previous year: EUR 9.0 million). This result is due to the excellent sales performance in the prior year and in the first quarter of 2021 and digital revenues of EUR 1.1 million gained as a result of the acquisition of FAIRRANK GmbH. The Digital business accounted for around 77 percent of total revenue in the first quarter of 2021 (previous year: 75 percent). Three-month earnings (EBITDA) were EUR 0.9 million (previous year: EUR 0.4 million).

The Directory Assistance segment accounted for EUR 3.3 million of total revenues (previous year: EUR 3.0 million). Three-month earnings (EBITDA) were EUR 0.0 million (previous year: EUR 0.0 million).

Updated report on expected developments

Consolidated revenues as well as EBITDA and cash holdings are developing in line with expectations.

Significant events after the end of the interim reporting period

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, although the ongoing Covid lockdown may have a more significant impact on the 11 88 0 Solutions Group's operations in the future. 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 increasing digitalisation trend.

Comparability of disclosures

The 3-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, 05 May 2021

The Management Board

First Quarter Report 2021 11 88 0 Solutions-Gruppe

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 1188 0 Solutions Group	16
Imprint	17

8

Consolidated income statement (IFRS)	3-Month-Report (unaudited)
in EUR thousand	01.01 – 31.03.2021	01.01. - 31.03.2020
Revenues	14,351	12,058
Cost of revenues	-8,280	-6,932
Gross profit	6,071	5,126
Selling and distribution costs	-4,108	-3,901
General administrative expenses	-2,598	-2,148
Operating income (loss)	-635	-923
Interest expense	-5	-2
Interest expenses from lease liabilities (IFRS 16)	-70	-81
Loss from marketable securities	-6	-27
Financial income (loss)	-81	-110
Income (loss) before income tax	-716	-1,033
Deferred income tax	12	286
Income tax	12	286
Net income (loss)	-704	-747
Attributable to:
Owners of the parent	-704	-747
Earnings per share for net income (loss) for the reporting period attributable to ordinary equity holders of the parent (in euro)	-0.03	-0.04

Consolidated statement of comprehensive income (IFRS)	3-Month-Report (unaudited)
in EUR thousand	01.01. - 31.03.2021	01.01. - 31.03.2020
Net income (loss)	-704	-747
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss
Actuarial gains (losses) from pensions and similar obligations, net	0	0
Deferred tax on acturial gain (losses) from pensions and similar obligations, net	0	0
Items that can be reclassified subsequently to profit or loss
Other comprehensive income (loss) after tax	0	0
Total comprehensive income (loss)	-704	-747
Attributable to:
Owners of the parent	-704	-747

Consolidated statement of financial position (IFRS)

in EUR thousand	31 March 2021	31 March 2020	31 December 2020
ASSETS	(unaudited)	(unaudited)
Current assets
Cash and cash equivalents	2,448	2,012	2,922
Restricted cash	134	67	134
Trade accounts receivable	9,633	9,109	9,614
Current tax assets	4	1	4
Financial assets at fair value through profi t or loss	604	555	610
Other fi nancial assets	228	103	180
Other current assets	918	857	663
Total current assets	13,969	12,704	14,126
Non-current assets
Goodwill	3,717	416	3,717
Intangible assets	6,681	6,088	6,666
Property and equipment	983	904	1,034
Capitalized right of use (IFRS 16)	5,064	5,553	5,360
Other non-current assets	489	245	483
Total non-current assets	16,934	13,206	17,259
Total assets	30,903	25,910	31,385

in EUR thousand	31 March 2021	31 March 2020	31 December 2020
LIABILITIES AND EQUITY	(unaudited) (unaudited)
Current liabilities
Trade accounts payable	1,432	1,068	713
Accrued liabilities	5,128	4,060	5,458
Provisions	0	35	0
Short-term lease liabilities (IFRS 16)	1,491	1,376	1,541
Other current liabilities	6,581	5,631	6,545
Total current liabilities	14,632	12,170	14,256
Non-current liabilities
Provisions	938	726	839
Provisions for retirement benefits	581	477	581
Other non-current liabilities	656	0	656
Long-term lease liabilities (IFRS 16)	4,412	4,962	4,653
Deferred tax liabilities	636	960	648
Total non-current liabilities	7,224	7,125	7,377
Total liabilities	21,856	19,295	21,633
Equity
Share capital	24,915	21,022	24,915
Additional paid in capital	34,473	33,598	34,473
Retained earnings	-49,944	-47,675	-49,240
Other components of equity	-397	-330	-397
Equity attributable to owners of the parent	9,047	6,615	9,752
Total equity	9,047	6,615	9,752
Total liabilities and equity	30,903	25,910	31,385

Consolidated statement of cash flows (IFRS)

in EUR thousand	01.01. – 31.03.2021	01.01.-31.03.2020
Cash flow from operating activities	(unaudited)	(unaudited)
Income (loss) before income tax	-716	-1,033
Adjustments for:
Amortisation and impairment of intangible assets	1,128	979
Amortisation and impairment of capitalized-right-of-use IFRS 16	340	284
Depreciation and impairment of property and equipment	82	68
Interest expense	75	84
Gain (loss) from marketable securities	6	27
Valuation allowance for trade accounts receivable	181	210
Impairment of other non-current assets	60	34
Changes in non-current provisions	99	74
Changes in non-current other and financial assets	-65	-62
Cash inflows before changes in operating assets and liabilities	1,190	665
Changes in operating assets and liabilities:
Trade accounts receivable	-404	-576
Miscellaneous current assets	-303	-307
Trade accounts payable	718	-194
Accrued expenses and other current liabilities	-91	-273
Income taxes received	0	18
Cash inflows / cash outflows from operating activities	1,110	-667

in TEUR	01.01.-31.03.2021	01.01.-31.03.2020
Cash flow from investing activities
Purchase of intangible assets excl. customer contracts	-71	-144
Purchase of customer contracts with contract period > 1 year	-1,071	-872
Purchase of property and equipment	-32	-51
Cash outflows from investing activities	-1,174	-1,067
Cash flow from financing activities
Interest paid	-4	-2
Interest expenses for leases in accordance with IFRS 16	-70	-81
Payments from the repayment of lease liabilities (IFRS 16)	-336	-262
Cash outflows in financing activities	-410	-345
Change in cash	-474	-2,079
Cash at the beginning of the reporting period	2,922	4,090
Cash at the end of the reporting period	2,448	2,011
Cash and cash equivalents with and without restricted cash as well as financial assets at fair value through profit or loss at the end of reporting period	3,186	2,634

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 compo nents of equity	Total equity
Balance at January 1, 2021	24,915	34,473	-49,240	-397	9,752
Net income (loss)	–	–	-704	–	-704
Actuarial gains (losses) from pensi ons and similar obligations	–	–	–	–	0
Deferred tax on acturial gains (losses) from pensions and similar obligations					0
Other comprehensive income (loss)	0	0	0	0	0
Total comprehensive income (loss)	0	0	-704	0	-704
Balance at March 31, 2021	24,915	34,473	-49,944	-397	9,047
Balance at January 1, 2020	21,022	33,598	-46,927	-330	7,363
Net income (loss)	–	–	-747	–	-747
Actuarial gains (losses) from pensi ons and similar obligations	–	–	–	–	0
Deferred tax on acturial gains (losses) from pensions and similar obligations				–	0
Other comprehensive income (loss)	0	0	0	0	0
Total comprehensive income (loss)	0	0	-747	0	-747
Balance at March 31, 2020	21,022	33,598	-47,675	-330	6,615

First Quarter Report 2021 11 88 0 Solutions-Group

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

Artwork

Fabian Schüller 11 88 0 Internet Services AG

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

www.11880.com