11 88 0 Solutions AG — Investor Presentation 2012

May 3, 2012

telegate Group:

Financial Results Q1 2012

Munich, May 3, 2012

Agenda

• Business update
• Financials Q1 2012

Revenue & EBITDA Q1 in line with expectations

Group Revenues (m€)

Group EBITDA* (m€)

Usage / brand strategy Go-To-Market Operational excellence

• Assess synergy in brand equity

consolidation

• Increase digital awareness

S i t t e g m e n a o n 2 0
A l i f f t g n o e r o • l i e v o v n g d t c s o m e r n e e s u

Three key pillars across the company represent the focus of 2012

Develop

Customer

•

Improve Customerretention

•

• Reduce cost base

In a market with a structural 10x upside in traffic monetization, telegate has additional potential

telegate: Usage vs. Revenues1

1based on online revenues and total local search traffic

Traffic growth Q1 yoy*:

60% from 55m to 88m

ÖMobile growth **:

144% from 10.8m to 26.4m

ÖStationary growth:

44% from 39.2m to 56.4m

ÖNumber of App downloads:

55% from 0.9m to 1.4m

* Data on traffic does not include CD-Rom searches** Mobile traffic includes cooperation agreements

A set of key actions are about to be taken with regard to customer segmentation

• Run a market survey on telegate customers, dropout customers and customers buying competitors products;
• Develop a fact based assessment of the attractiveness and competition levels for customers business scope based on segmentation:
• Advertisers(customers with active relationship in last year);
• Dropouts (non-Advertisers with active relationship in last 2 years);
• Prospects (non-Advertisers with no relationship in last 3 years)
• Define a value proposition tailored to customers needs taking into account:
• business size/age
• geo-scope activity
• average sales ticket
• advertising needs
• Capability of spending.

In a nutshell, segmentation rules are designed to increase the sales "hit rate", moving from a "machine gun" to a "sniper" approach to sales

Visible improvement in operational excellence

Improve customer retention

Churn rate development* Structural Cost Base*

• Several measures that have been implemented in the past 6 -12 months start to pay off: Churn rate improvement fully in line with expectations
• Further measures that are currently being implemented will have a sizeable positive effect in the mid-term future:
• a) Offering 24-month-contracts since 10/2011 will have sizeable positive effect as of 10/2012: already more than 1/3 of our customers signed the 24- months-contract
• b) 3-months-farming on Sales channels providing early positive signals

Reduce cost-base

Structural cost base

• Improved Sales efficiency and effectiveness results in improved ratio Sales Cost/media revenues
• Continuous optimization of marketing expenditures: 2009 – 2012 CAGR of -12%
• Reduction of overhead personnel cost of about -10% p.a. 2011 and 2012
• DA costs fully under control: continuous adoption of voice capacity to market decline

Agenda

• Business update
• Financials Q1 2012

Revenue & EBITDA Q1 in line with expectations

€ m	Q 1 2 0 1 2	Q 1 2 0 1 1	%
Re ve nu e s	2 5, 2	2 8, 2	-1 1 %
Re D A lu ion t ve nu es so s	1 6, 3	1 9, 7	-1 8 %
Re Me d ia ve nu es	8, 9	8, 5	% 5
G f i % t ro s s p ro	9, 1 % 5	9, 0 % 5
S l l ing d d is i bu ion tr t ts e a n c os	1 1, 2	1 1, 5	-3 %
d fo ing ta te re s r n on -re cu rr ->	1 1, 0	1 1, 5	-4 %
G l a dm in is ive tra t en er a e xp en se s	3, 6	3, 7	-3 %
d fo ing ta te re s r n on -re cu rr ->	3, 1	3, 7	-1 6 %
E B I T D A b fo in f fe ts e re n o n- re cu rr g e c	2, 7	3, 7	-2 6 %

Company transformation progressing: Media business now accounts for 35% of total revenues

• Gross profit margin maintained
• Structural cost-base further optimized: 0.8 m€ non-recurring cost incurred

Ongoing company transformation in Germany, profitability Spain stabilized

• Growth of Media business is partly but not yet fully compensating decline of DA business

• Loss from Media business reduced but still significant room for improvement

• Lower call volume driven by slightly accelerated market decline

• Profitability stabilized: Increasing flexibility and cost efficiency of CC operations thanks to full outsourcing offshore

*before non recurring items

Net Cash Flow impacted by declining operating profitability & lower CAPEX

Operating Cash-flow (m€)

Q1 2011 Q1 2012 -1.4-1.5

• Q1 is usually the weakest quarter in terms of cash generation due to payments related to full year
• YoY operating cash flow follows profit development

• Last years cash flow includes extraordinary tax payments related to previous years

• Including interest income of 0.2 m€ in Q1/11 and 0.1 m€ in Q1/12

• Lower level of capital expenditures in 2012 (-0.5 m€ in Q1/12 vs. -1.3 m€ in Q1/11) results in a stable yoy Net Cash Flow

* Net Cash Flow: Operating CF + investing CF +/- interest income/expenses

Healthy Net Financial Position

Net Financial Position (m€)

• Net cash-flow last 12 months of ~0m€ Æreduced NFP due to dividend payment of 9.6 m€ in 06/2011
• Stop of forfaiting process in Q3 2011 resulted in 1.2m€ lower NFP (cash -1.2m€, receivables +1.2m€)
• No cash deposit at SEAT anymore since 07/2011, cash fully deposited in fix-term deposits with short-term maturity at banks
• Dividend proposal 0.35€/share at 28.06.2012

Profit- and Cash-Flow guidance for 2012 confirmed

P f i b i l i t t r o a y	E B I T D A * l f € 1 0 1 2 t t e e g a e g r o u p o m -
C h F l a s o w	C P i i N h F l ** i 2 0 1 2 l l i 2 0 1 3 d 2 0 1 4 t t o s e e a s o n a s e a s n a n v w w

* Before Non-recurring items

** Operating CF + investing CF +/- interest income/expenses

Decision by highest court on data claims expected very soon

Reclamation claim: 96m€* (incl. interest)

• All respective documents (reasoning of DTAG for their non-admission complaint, counter-reasoning by telegate) will be at the BGH/highest court within the next few days
• Judgment expected by mid 2012
• Net about 50 m€ cash expected

Damage claim: 100m€ * (incl. Interest)

Oral hearings in 1st instance are scheduled after the summer break

* Based on 30.04.2012

Contacts and financial calendar

Contact telegate AG

C O E	S E l i h i o c a o v
C F O	R l f G ß h b ü a r a e r
I R l i t t n v e s o r e a o n s	F P W b t r a n z e e r e e r
G l A t t e e g a e	f ß F h 1 2 t r a u n o e r s r a e a M i i d 8 2 1 5 2 t a r n s r e , G e r m a n y
P h o n e	( ) 4 9 0 8 9 8 9 5 4 1 7 5 0 + - -
F a x	( ) 4 9 0 8 9 8 9 5 4 1 7 1 0 + - -
E i l m a	@ I l i l t t t t n v e s o r. r e a o n s e e g a e c o m
H o m e p a g e	l t t w w w e e g a e c o m

Financial Calendar

M 3 2 0 1 2 a y ,	3 h l 2 0 1 2 t t -m o n s r e s u s
J 2 7 2 0 1 2 n e u ,	A G M
A 2 2 0 1 2 t g s u u ,	h l 6 2 0 1 2 t t -m o n s r e s s u
N b 8 2 0 1 2 o v e m e r ,	9 h l 2 0 1 2 t t -m o n s r e s u s

Disclaimer

05/2012

This presentation contains "forward looking statements" regarding telegate Group (telegate), including opinions, estimates and projections regarding telegate's financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of telegate to be materially different from future results, performance and achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct.

Whilst all reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions and expectations contained herein are fair and reasonable, no representation or warranty, express or implied, is made by telegate with respect to fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this presentation is subject to change without a prior notice, it may be incomplete or condensed, and it may not contain all material information concerning telegate. telegate undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise.

Backup

Key Data of the Share

ISIN DE0005118806

O d i h t t u s a n n g s a r e s	1 9, 1 1 1, 0 9 1
d D i i d d 2 0 1 1 ( i d i 2 0 1 2 ) p r o p o s e v e n p a n	/ 0. 3 5 E h u r o s a r e
5 W h i h 2 g	E 9. 4 3 r o u
5 W l 2 o w	E 4. 9 9 r o u
t o C ( ) M k i l i i 3 1 s f M h 2 0 1 2 t t t a r e a p a s a o n a r c	1 1 5 E m u r o
d 5 2 W t a v e r a g e u r n o v e r p e r a y	1 8 2 k E u r o
S T d d t r a n s p a r e n c a n a r y	i S P d d t r m e a n a r
I d i n c e s	C S S D A X P i A l l h T h l A l l h r m e a r e, e c n o o g y a r e ,
O f f i i l M k t c a a r e	F k f d X t t r a n u r a n e r a
L i i d i C l t q a s s u y	2
M k k t a r e m a e r s	B W I B k a n

Consolidated profit and loss statement

in k E U R	Q 1 2 0 1 2	Q 1 2 0 1 1
Re ve nu e s	2 5. 1 5 3	2 8. 2 1 6
Re D A lu ion t ve nu es so s	1 6. 2 6 6	1 9. 7 2 4
Re M d ia ve nu es e	8. 8 8 7	8. 4 9 2
C f r t o os ev en ue s	-1 0. 2 9 1	-1 1. 4 5 7
G f i t ro s s p ro	1 4. 8 6 2	1 6. 6 4 2
Gr f i in t % os s p ro	5 9, 1 %	5 9, 0 %
S l l ing d d is i bu io tr t ts e a n n co s	-1 1. 1 4 7	-1 1. 0 4 5
G l a dm in is ive tra t en er a e xp en se s	-3 5 9 7	-3 6 9 6
O he in in t t r o p er a g co m e	2	0
O he in t t r o p er a g ex p en se	-2 4	-4 3
E B I T D A / in f fe ts w o no n- re cu rr g e c	2. 7 3 6	3. 6 8 2
E B I T D A inc l. n in f fe ts on -re cu rr g e c	1. 9 1 5	3. 4 3 6
F ina ia l inc nc om e	1 2 1	1 3 5
In b fo ta c o m e e re x	1 9 0	1. 9 1 2
Inc ta om e x	-1 7	-5 6 8
in Ne t c o m e	1 7 3	1. 3 4 4
( ) Ea in ha in Eu rn g s p e r s re ro	0, 0 1	0, 0 7

Non-Recurring items first quarter

( i i € ) n o n -r e c r r n g n m u ,	Q 1 2 0 1 1	Q 1 2 0 1 2
C f t o s o r e v e n u e s	0 3	0 1
D i i b i t t t s r u o n c o s s		0 2
G l A d i e n e r a m n e p e n s e s x		0 5
	0 3	0 8

Consolidated balance sheet

i k E U R n	3 M 2 0 1 2	3 M 2 0 1 1	3 1. 1 2. 2 0 1 1
A t s s e s
C h & h i l t a s c a s e q u v a e n s	3 7. 5 7 2	3. 3 9 6	3 9. 0 4 8
f T i b l i i b l & i i l t t a n g e, n a n g e n a n c a a s s e s	2 7. 0 4 5	3 3. 4 8 5	2 8. 5 2 7
T d i b l t r a e a c c o u n s r e c e v a e	3 1. 8 1 7	3 3. 0 3 0	3 2. 9 8 8
F i i l & i l b l f l t t n a n c a a s s e s a s s e s a v a a e o r s a e	6. 8 1 9	5 1. 1 6 1	6. 0 2 5
T t a x a s s e s	8. 1 1 1	2 2 3 7.	9 1 9 7.
O h t t e r a s s e s	1. 0 5 5	3 5 5	9 9 5
T l A t t o a s s e s	1 1 2. 4 7 3	1 2 8. 6 5 0	1 1 5. 5 0 2
i i i i S i L b l & h h l d ' t t a e s a r e o e r s e q u y
C l i b i l i i t t u r r e n a e s	4 4. 6 0 4	5 1. 8 7 1	4 7. 4 8 7
N l i b i l i i t t o n- c r r e n a e s u	3 4 8 5.	6. 9 3 5	6 6 8 5.
S h h l d ' i t a r e o e r s e q u y	6 2. 5 2 1	6 9. 8 2 6	6 2. 3 4 7
T l l i b i l i i & h h l d ' i t t t o a a e s s a r e o e r s e q u y	1 1 2. 4 7 3	5 1 2 8. 6 0	5. 5 1 1 0 2

Consolidated cash flow statement

in k E U R	3 M 2 0 1 2	3 M 2 0 1 1
fo Inc be inc ta om e re om e x	1 9 0	1. 9 1 2
De ia ion & isa ion t t t p re c am or	1. 8 4 6	2. 0 3 7
C ha in ing & l ia b i l i ies t ts t ng es op er a a ss e	-2 5 5 1	-1 6 4 0
Inc i d tax om e es p a	-6 0 4	-2 1 5 5
O he i t te r ms	4 4	-4 4 4
Ca h u d in in iv i ie t t t s se op er a g ac s	-1 0 7 5	-2 9 0
Ca i l e d i ta tu p xp en re s	-5 3 5	-1 3 0 2
f ( ) Ne ha in ho ixe d de i inv 3 hs t c t- te t tm ts t ng e s r rm p os es en mo n >	0	-4 4. 0 0 0
Ca h u d in in in iv i ies t t t s se ve s g ac	-5 3 5	-4 5. 3 0 2
Pu ha f ha tre rc se o as ury s re s	0	-1 2
In ive d te ts re s re ce	1 4 0	2 4 3
In i d te ts re s p a	-4	-9
Ca fro f in in iv i ie h t t s m an c g ac s	1 3 6	2 2 2
C ha in h d h iv le ts ng e ca s an ca s eq u a n	-1 4 6 7	-4 5. 3 2 7
Ca h a d h iv le be in in f r in io d ts t t s n ca s eq u a n a g n g o ep or g p er	3 9. 0 4 8	4 8. 6 8 7
Ca h a d h iv le d f r in io d ts t e t s n ca s eq u a n a n o ep or g p er	3 5 2 7. 7	3. 3 9 6
Ca ( ), f h a d c h iva len 3 hs ho ixe d de i ts t t- te t s n as eq mo n s r rm p os u < ( ) fo f inv 3 hs l l a ho i la b le le ina ia l tm ts t t- te es en m on as e s s r rm av a r s a nc > w he d o f r ing io d ts t t t as se a e n ep or p er	3 7. 5 7 2	4 7. 3 9 6

Thank you for your attention!

telegate AG Fraunhoferstr. 12 a82152 Martinsried bei München

Telefon 089/8954-0Fax 089/8954-1010

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