TradeDoubler

Quarterly Report • Feb 6, 2018

Tradedoubler year-end report January – December 2017

Steady progress

Steady progress

THE FOURTH QUARTER OCTOBER – DECEMBER 2017

• Net sales amounted to SEK 295 M (346). Net sales adjusted for change related items were SEK 295 M (343), which was a decrease of 14%.
• Gross profit adjusted for change related items was SEK 66 M (78), a decrease of 16% or 16% adjusted for changes in exchange rates. Gross margin adjusted for change related items was 22.2% (22.7).
• Operating costs excluding depreciation and change related items were SEK 61 M (65), a decrease of 7%.
• EBITDA amounted to SEK 6 M (-2). Adjusted for change related items, EBITDA was SEK 5 M (13).
• Capitalised expenses for product development were SEK 4 M (9).
• Cash flow from operating activities was SEK 10 M (20) and the sum of cash and interest-bearing financial assets was SEK 69 M (210) at the end of the fourth quarter. Net cash in the fourth quarter increased by SEK 8 M to SEK -64 M.
• Earnings per share, before and after dilution were SEK -0.22 (-0.38).
• In November François Pacot was appointed Chief Technology Officer.

THE FULL YEAR 2017

• Net sales amounted to SEK 1,173 M (1,344). Net sales excluding change related items were SEK 1,173 M (1,339), which was a decrease of 12%.
• Gross profit excluding change related items was SEK 260 M (297), a decrease of 12% or 13% adjusted for changes in exchange rates. Gross margin excluding change related items was 22.2% (22.2).
• Operating costs excluding depreciation and change related items were SEK 239 M (286), a decrease of 17%.
• EBITDA amounted to SEK 23 M (-6). Excluding change related items, EBITDA was SEK 22 M (11).
• Capitalised expenses for product development were SEK 18 M (36).
• Cash flow from operating activities was SEK -74 M (-64).
• Earnings per share, before and after dilution were SEK -0.23 (-1.18).
• In February and May Tradedoubler repurchased total SEK 62 M of the nominal value of its own bond.
• In July Tradedoubler acquired the Swedish technology company Metapic.
• The Board proposes that no dividend should be declared for 2017. No dividend was declared for 2016.

	Oct-Dec	Oct-Dec		Full year	Full year
FINANCIAL OVERVIEW, SEK M	2017	2016	Change %	2017	2016	Change %
Net sales adjusted for change related items	295	343	-13.9%	1,173	1,339	-12.4%
Gross profit adjusted for change related items	66	78	-16.0%	260	297	-12.3%
Gross margin (%)	22.2%	22.7%		22.2%	22.2%
Operating costs excl. depr. and change related costs	-61	-65	-6.8%	-239	-286	-16.6%
EBITDA adjusted for change related items	5	13		22	11
EBITDA-margin (%)	1.5%	3.7%		1.8%	0.8%
Change related items 1	2	-15		2	-17
EBITDA	6	-2		23	-6
Operating profit (EBIT)	-5	-33		-4	-51
Net profit	-10	-16		-10	-50
Net investments in non-financial fixed assets	-4	-9		-18	-36
Cash flow from operating activities	10	20		-74	-64
Liquid assets incl financial investments, at period's end	6 9	210		6 9	210
Net cash2 , at period's end	-64	16		-64	16

1 For more information regarding change related items see page 6

²Current investment and liquid assets less interest-bearing liabilities

CEO MATTHIAS STADELMEYER'S COMMENTS

"During 2017 Tradedoubler focused on profitability and financial independency on which we made progress. The work carried out includes a repositioning of the company, restructures of management and operations, investments into our technology platform and an improved cost and capital structure.

Tradedoubler offers performance marketing solutions for advertisers and publishers who want to grow their business. The main part of this offering is our unique network of connections and market leading technology platform. These are complemented by our programmatic functionalities and business intelligence technology. Instead of offering different products we create solutions that drive results tailored to our clients' needs. This adapted positioning ensures that Tradedoubler focuses on its core business building on almost two decades of know-how and experience.

In Q4 revenue and GP declined by 14% and 16% respectively which is a weaker year-on-year comparison than in Q3 and is mainly explained by the seasonality of formerly lost business. For the full year of 2017 the GP decline was 12%.

GP margin in Q4 was 22.2% which is lower than in Q3 due to seasonality as well. While the margin varies slightly based on the seasonality of our clients and the client mix it is overall stable.

Operational costs decreased by 7% which still reflects the improvements we made in the management and service structure of the company. The effect in the year-on-year comparison becomes smaller as we have finalized some of the larger improvement projects already in 2016.

EBITDA excluding change related items therefore was SEK 5 M compared to SEK 13 M last year. Including change related items it was SEK 6 M which is an improvement to the SEK -2 M in Q4 2016.

For the full year 2017 EBITDA was SEK 23 M. Excluding change related items it was SEK 22 M.

Capitalized expenses in Q4 were SEK 4 M which is in line with previous quarters and significantly lower than last year.

In the coming quarters we will focus on further improvements of our business to realise our plans for 2018."

Stockholm – 6 February 2018 Matthias Stadelmeyer

THE GROUP'S RESULTS

If not explicitly stated, the disclosed financial information refers to reported numbers that are not adjusted for change related items nor changes in exchange rates. For more information regarding change related items see page 6.

Consolidated net sales during 2017 amounted to SEK 1,173 M (1,344). Adjusted for change related items net sales were SEK 1,173 M (1,339), a decline of 12 per cent or 12 per cent adjusted for changes in exchange rates.

Consolidated net sales during the fourth quarter were SEK 295 M (346). Adjusted for change related items, net sales were SEK 295 M (343). This was a decline of 14 per cent or 14 per cent adjusted for changes in exchange rates.

Gross profit during 2017 was SEK 260 M (302). Gross profit adjusted for change related items was SEK 260 M (297), which was a decline of 12 per cent or 13 per cent adjusted for changes in exchange rates.

Gross profit during the fourth quarter was SEK 66 M (81). Gross profit adjusted for change related items was SEK 66 M (78), a decrease of 16 per cent or 16 per cent adjusted for changes in exchange rates. The decline is mainly related to the loss of some larger customers during 2016.

Gross margin, adjusted for change related items, during 2017 was 22.2 per cent (22.2) and 22.2 per cent (22.7) in the fourth quarter.

Operating costs, excluding depreciation, amounted to SEK 237 M (308) during 2017. Operating costs, excluding change related items and depreciation, were SEK 239 M (286), a decrease of 17 per cent or 16 per cent adjusted for changes in exchange rates. The reduced cost can mainly be explained by a reduction in the number of employees and various efficiency projects that has been put in place.

Operating costs, excluding depreciation, amounted to SEK 59 M (83) during the fourth quarter. Operating costs, excluding change related items and depreciation, were SEK 61 M (65). This was a decrease of 7 per cent or 6 per cent adjusted for changes in exchange rates.

Operating profit before depreciation and amortisation (EBITDA) during 2017 was SEK 23 M (-6). Adjusted for change related items EBITDA amounted to SEK 22 M (11). Depreciation and amortisation was SEK 28 M (45) and operating profit (EBIT) during 2017 hence amounted to SEK -4 M (-51).

Operating profit before depreciation and amortisation (EBITDA) in the fourth quarter was SEK 6 M (-2.2). Adjusted for change related items, EBITDA was SEK 5 M (13). This was the sixth consecutive quarter with positive EBITDA after adjustment for change related items. Depreciation and amortisation was SEK 11 M 31) and operating profit (EBIT) amounted to SEK -5 M (-33).

Net financial items during 2017 were SEK 1.2 M (9) where of exchange rate effects were SEK -2.4 M (-1.4). Financial income and expenses amounted to SEK 4 M (10) and were affected by interest income, revaluations of short term investments, interest expense relating to the bond issue and profit on repurchase of own bonds below nominal value.

Net financial items in the fourth quarter were SEK -3 M (22) where of exchange rates effects were SEK -0.5 M (0.4).

Financial income and expenses amounted to SEK -2.9 M (22), the decrease is mainly due to the one-time profit made in the fourth quarter 2016 in the repurchase of own bonds.

NET SALES (SEK M) / GROSS MARGIN (%), ADJUSTED FOR CHANGE RELATED ITEMS

EBITDA (SEK M) / EBITDA/GP (%),

Profit after tax during 2017 amounted to SEK -10 M (-50), corporate income tax affected the result with SEK -7 M (-7). In the fourth quarter corporate income tax was SEK -1.7 M (-5) and profit after tax was SEK -10 M (-16).

OPERATIONAL SEGMENTS

If not explicitly stated, the disclosed financial information refers to reported numbers that are not adjusted for change related items nor changes in exchange rates. For more information regarding change related items see page 6.

Tradedoubler's operational segments has previously been presented at a regional level for TD CONVERT and as a total for TD CONNECT. In conjunction with changes in the structure of the internal reporting the segments are from the first quarter 2017 presented at a regional level where Tradedoubler's segments consists of DACH (Germany, Switzerland and Austria), France & Benelux (France, Belgium and Netherlands), Nordics (Sweden, Norway, Denmark, Finland and Poland), South (Italy, Brazil and Spain) and UK & Ireland (UK). Comparative periods have been recalculated according to the new segment structure.

Net sales

Net sales during 2017 amounted to SEK 1,173 M (1,344), which was a decrease of 13 per cent or 13 per cent adjusted for changes in exchange rates.

Net sales during the fourth quarter amounted to SEK 295 M (346), which was a decrease of 15 per cent or 14 per cent adjusted for changes in exchange rates. The largest contributing factor to the decline in net sales is attributable to segment UK & Ireland. In this segment net sales have under

2017 decreased by 27 per cent adjusted for changes in exchange rates, mainly related to the loss of some larger clients and the active closure of unprofitable programs formerly managed in Telford during 2016. In segment France & Benelux the decrease was 2 per cent adjusted for changes in exchange rates, which was an improvement of 12 percentages compared to the same period last year.

EBITDA

All segments report similar EBITDA compared to last year except France & Benelux and UK & Ireland. France & Benelux EBITDA increased by 38 per cent adjusted for changes in exchange rates, mainly due to efficiency improvements in a number of different areas. In segment UK & Ireland EBITDA decreased by 53 per cent adjusted for changes in exchange rates, which is fully attributable to the decrease in net sales.

Costs for group management and support functions during 2017 amounted to SEK 55 (93), a decline of 40 per cent or 40 per cent adjusted for changes in exchange rates. Costs during the fourth quarter were SEK 13 M (20), a decrease of 37 per cent or 37 per cent adjusted for changes in exchange rates. The decrease is mainly due to the revaluation of the contingent additional purchase price regarding R-Advertising and cost savings and efficiency improvements that commenced in 2016 and has included a revised structure for group management and a reduction in administrative employees.

Segments and market units

SEK M	Oct-Dec	Oct-Dec	Full year	Full year
Net Sales	2017	2016	2017	2016
DACH	39	51	165	202
France & Benelux	79	79	301	301
Nordics	84	92	304	318
South	39	41	150	158
UK & Ireland	54	83	254	364
Total Net Sales	295	346	1,173	1,344
EBITDA
DACH	4	2	14	15
France & Benelux	5	4	16	11
Nordics	7	9	23	30
South	4	4	19	18
UK & Ireland	1	0	6	12
Total	19	18	79	87
Group mgmt & support functions	-13	-20	-55	-93
Total EBITDA	6	-2	23	-6
Depreciation and impairment	-11	-31	-28	-45
Operating profit as in consolidated income statement	-5	-33	-4	-51
EBITDA/Net sales, %
DACH	9.4	3.4	8.7	7.3
France & Benelux	5.9	5.4	5.2	3.8
Nordics	7.7	9.3	7.7	9.3
South	9.4	8.9	12.8	11.6
UK & Ireland	1.6	0.8	4.0	3.6
Total EBITDA Margin	2.2	-0.6	2.0	-0.5

Segments include change related items, see page 6 for more details about the segments affected.

CASH FLOW

Cash flow from operating activities, before changes in working capital, amounted to SEK -11 M (-19) during 2017 and related to EBITDA adjusted for paid taxes, paid interest and non-cash items. Changes in working capital were SEK -63 M (-45). The negative working capital was mainly explained by reduced prepayment amounts from customers when changing to other payment terms.

Net investments in tangible and intangible assets during 2017 amounted to SEK 18 M (36). These investments mainly related to product development.

Cash flow from short term investments was SEK 40 M (52). Cash flow amounted to SEK -100 M (-83) during 2017 and net cash decreased with SEK 80 M (84).

Cash flow from operating activities before changes in working capital was SEK -0.2 M (4) in the fourth quarter 2017 and related to EBITDA reduced with paid taxes, paid interest and non-cash items. Changes in working capital were SEK 10 M (16).

Net investments in tangible and intangible assets during the fourth quarter, mainly related to product development, amounted to SEK 4 M (9). Cash flow amounted to SEK 17 M (-13) and net cash increased by SEK 8 M (40).

During 2017 Tradedoubler repurchased SEK 62 M in nominal value of its own bond which impacted the cash flow with SEK -47 M.

Tradedoubler invested parts of the proceeds from the bond issue in December 2013 in interest bearing financial instruments. At the end of the fourth quarter 2017 a total of SEK 0 M (41) was placed in interest bearing financial instruments.

FINANCIAL POSITION

Cash and cash equivalents at the end of 2017 amounted to SEK 69 (169) M and were affected by translation differences of SEK -0.7 M (-0.5). In addition, SEK 0 M (41) was invested in interestbearing financial instruments. The sum of cash and cash equivalents and interest-bearing financial assets was therefore SEK 69 M (210). Interest-bearing liabilities amounted to SEK 133 M (194) and related to the five-year unsecured bond issue with maturity date in the fourth quarter 2018. Net cash hence amounted to SEK -64 M (16) at the end of 2017. The company is currently and on a continued basis evaluating options in the capital market to secure long-term financing.

Consolidated shareholders' equity amounted to SEK 206 M (207) at the end of 2017 and the equity/asset ratio was 28.7 per cent (23.7). The return on equity during the rolling 12 months ending December 2017 was negative.

CHANGE RELATED ITEMS

For comparability reasons and to indicate the underlying performance, Tradedoubler adjust for change related items. The following items affect the comparability in this report.

During 2017 change related items amounted to SEK 1.5 M which related to costs for the long-term incentive programme of SEK -0.7 M (Group management), cost for renovation of old office of SEK -0.5 (France & Benelux), severance payments of SEK -2 M (UK & Ireland), SEK -2.5 M (France & Benelux), SEK -1.5 (DACH) and SEK -0.5 M (Group management) and a revaluation of contingent additional purchase price regarding R-Advertising acquisition of SEK 9.2 M.

During 2016 change related items amounted to SEK -17 M and included change related revenue of SEK 5 M related to a reverse of the prepayment accrual made in year-end 2014.

Change related costs amounted to SEK -22 M and were related to severance payments of SEK -6 M, costs for the long-term incentive program of SEK -1 M (Group Management) and restructuring costs of SEK -15 M, which mainly is related to the closing of the office in Telford.

SEASONAL VARIATIONS

Tradedoubler's operations, particularly within Performance Marketing, fluctuate with the development of e-commerce and online advertising. There are seasonal variations particularly within e-commerce. The highest level of activity is before Christmas, which implies that the fourth quarter is normally the strongest for Tradedoubler.

THE PARENT COMPANY

The parent company's net sales amounted to SEK 68 M (70) during 2017 and to SEK 17 M (14) during the fourth quarter. Revenue primarily consisted of internal licensing revenue to subsidiaries.

Operating profit (EBIT) was SEK -29 M (-66) during 2017 and SEK -18 M (-42) during the fourth quarter.

Net financial items amounted to SEK 13 M (23) during 2017 and to SEK 2.7 M (26) during the fourth quarter. Dividends from group companies impacted 2017 with SEK 10 M (15). Changes in exchange rates impacted 2017 with SEK -0.9 M (-1.2).

Corporate taxes were SEK 0 M (-0.2) during 2017 and SEK 0 M (-0.2) during the fourth quarter. Profit after tax was SEK -16 M (-43) during 2017 and SEK -15 M (-17) during the fourth quarter.

The parent company's receivables from group companies amounted to SEK 78 M (71) at the end of the fourth quarter 2017, of which none (0) were non-current. The parent company's liabilities to group companies were SEK 58 M (109), of which none (0) were non-current. Cash and cash equivalents amounted to SEK 34 M (124) at the end of the fourth quarter 2017.

During the fourth quarter 2013 the parent company issued a bond loan with the nominal value of SEK 250 M, which matures during the fourth quarter 2018. Tradedoubler have repurchased parts of its own bond hence the remaining nominal value at the end of the fourth quarter 2017 amounted to SEK 134 M.

Deferred tax assets amounted to SEK 14 M (14) at the end of 2017 and related to previous Group loans. No capitalisation of deferred tax on loss has been made since the assessment of the possibility of using deferred tax on loss carry forwards is unchanged compared to previous period.

EMPLOYEES

At the end of the fourth quarter 2017, Tradedoubler's staff corresponded to 284 (344) full-time equivalents (FTE) and included permanent and temporary employees as well as consultants.

SIGNIFICANT EVENTS DURING 2017

In May Tradedoubler repurchased own bonds for SEK 47 M which nominal value amounted to a total of SEK 62 M.

In July Tradedoubler acquired the Swedish technology company Metapic Sweden AB, that provides a popular platform for product recommendations within premium lifestyle media.

In November François Pacot was appointed Chief Technology Officer. Pacot joined Tradedoubler in December 2016 when the group acquired R-Advertising.

RISKS AND UNCERTAINTY FACTORS

Tradedoubler divides risks into market-related risks, operational risks, financial risks and legal risks. These risks are described on page 7 in the 2016 Annual Report. In addition to the fact that Tradedoubler's outstanding bond loan matures in December 2018 no significant risks and uncertainty factors have arisen in addition to those described in the 2016 annual report. The board is currently evaluating alternatives to solve this refinancing matter.

CRITICAL ESTIMATES AND JUDGEMENTS

For information regarding critical estimates and judgements in the financial statements, see note C2 in the 2016 annual report. No critical estimates or judgements are considered to have arisen since the latest submitted annual report.

DIVIDEND

The Board proposes that no dividend should be declared for 2017 (SEK 0 per share). Tradedoubler has a policy of distributing at least 50 per cent of its profit after tax provided that a suitable capital structure is maintained. The distribution may occur through share dividends, share redemption and share buybacks.

TRANSACTIONS WITH RELATED PARTIES

Aside from transactions in the normal course of business, to board and senior executives the following third party transactions have occurred during 2017. Reworld Media has, as a publisher in France received remuneration of 14 KEUR. Since January 2016 Reworld Media is providing HR-support to the French subsidiary at a cost that currently amounts to 4 KEUR per month. Reworld Media has during 2017 been invoiced for purchased services from Tradedoubler France of 165 KEUR in total and from R-Advertising of 665 KEUR in total. Since mid-September 2017 the French Tradedoubler subsidiary is based in the Reworld Media office. The arm's length principle has been applied on all of these transactions.

ANNUAL GENERAL MEETING

The Annual General Meeting 2018 will be held on 3 May 2018 at Tradedoubler's premises on Birger Jarlsgatan 57 A, Stockholm.

In accordance with the resolution of the Annual General Meeting 2017, a Nomination Committee has been appointed consisting of the Chairman of the Board Pascal Chevalier, Cédric Vincent representing Reworld Media S.A. (Chairman of the Nomination Committee) and Yi Shi.

Shareholders wishing to present proposals to the Nomination Committee for the 2018 Annual General Meeting can submit them to Viktor Wågström by e-mail: viktor.wagstrom@tradedoubler.com.

Information about the work of the Nomination Committee may be found on Tradedoubler's home page www.tradedoubler.com.

FOREIGN EXCHANGE RISK

Foreign exchange risk refers to the risk that changes in exchange rates may affect the consolidated income statement, balance sheet and cash flow statement. Foreign exchange risk exists in the form of transaction risk and translation risk. Tradedoubler is exposed to foreign exchange risk in 17 countries involving nine different currencies, with Euro (EUR) and British pounds (GBP) representing the majority share. During the fourth quarter 2017 approximately 52 (49) per cent of group sales were made in EUR and approximately 18 (23) per cent in GBP. Approximately 42 (49) per cent of the group's operational costs were in EUR and approximately 15 (30) per cent in GBP. Net investments in foreign currency or transaction risks are not currently hedged. Exposure attributable to exchange rate fluctuation in client and supplier invoices is limited since

invoicing to customers and from suppliers largely occurs in local currency for all companies in the group.

ACQUISITION

During the second quarter the first contingent additional purchase price attributable to the acquisition of R-Advertising, amounting to SEK 4 M, was paid by use of shares in own custody. During the third quarter, a revaluation of the outstanding additional purchase price was made which resulted in a decrease of SEK 6 M, and in the fourth quarter additional decrease of SEK 3 M.

In July 2017 Tradedoubler acquired the Swedish company Metapic Sweden AB. Acquisition investments and expenditures were limited.

MISCELLANEOUS

Significant events after the balance sheet date

No significant events have occurred after the end of the reporting period.

Accounting policies

This interim report is prepared in accordance with IAS 34, interim financial reporting and the Swedish annual accounts act. In addition to changes in the outstanding bond loan, the extent and nature of financial assets and liabilities are of the same nature and level as reported on 31 December 2016. Short term investments are valued at fair value. Financial liabilities carrying values are the same as the fair values with the exception of the bond loan which fair value according to level 2 amounts to SEK 106 M (based on liquid trading price) compared to the carrying amount of SEK 133 M. No new or amended standards have been applied in 2017.

For information on the accounting policies applied, see the 2016 annual report. In conjunction with changes in the structure for internal reporting the segment reporting is from the first quarter 2017 presented at a regional level where Tradedoubler's segments consists of DACH (Germany, Switzerland and Austria), France & Benelux (France, Belgium and Netherlands), Nordics (Sweden, Norway, Denmark, Finland and Poland), South (Italy, Brazil and Spain) and UK & Ireland (UK).

IFRS 9 includes recognition of financial assets and liabilities and will replace IAS 39 Financial instruments. IFRS 9 will enter into force for fiscal years commencing on 1 January 2018, the Group has during 2017 analysed the effects of the transition to IFRS 9 and the assessment is that the implementation of IFRS 9 will have no significant impact on the financial statements.

IFRS 15 replaces all previously issued standards and interpretations which manages revenue with a comprehensive model for revenue recognition that will enter into force for fiscal years commencing on 1 January 2018. During 2017, the Group has analysed the effects of the transition to IFRS 15 and overall, the assessment is that IFRS will not entail any change in how the company reports revenue.

The share

The total number of shares at the end of 2017 was 45,927,449 (45,927,449), of which 2,010,473 (2,855,554) were in own custody after use of own shares in the acquisition of R-Advertising first at the time of acquisition in December and then in the second quarter 2017 for the outcome of the contingent additional purchase price. The average number of outstanding shares during 2017 was 43,564,859 (42,332,449).

Earnings per share, before and after dilution, amounted to SEK -0.23 (-1.18) during 2017 and to SEK -0.22 (-0.38) during the fourth quarter. Equity per share amounted to SEK 4.47 (4.50) at the end of 2017.

The share price closed at SEK 3.15 on the final trading day of the fourth quarter 2017, which was lower than at year-end 2016 when the share price closed at SEK 4.85.

Long term financial targets

The company's long term financial targets, adopted by the board of directors, are to grow net sales in excess of 5 per cent annually in local currency and deliver an EBITDA/Gross profitratio in excess of 20 per cent over a business cycle.

Annual report

The annual report 2017 will be available on Tradedoubler´s website from 12 April 2018. Shareholders who would like to receive the annual report by post are requested to contact Tradedoubler at ir@tradedoubler.com or by telephone +46 8 405 08 00.

Financial information

Interim report Jan–Mar 2018 3 May 2018 Interim report Jan-Jun 2018 30 August 2018 Interim report Jan-Sep 2018 8 November 2018 Year-end report 2018 7 February 2019

Contact information

Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00 Viktor Wågström, CFO, telephone +46 8 405 08 00 E-mail: ir@tradedoubler.com

English version

Both an English version and a Swedish version of this report have been prepared. In the event of a difference between the two reports, the Swedish version shall prevail.

Other

Tradedoubler discloses the information provided herein pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was released for publication on 6 February 2018 at 08.00 a.m. CET. Numerical data in brackets refers to the corresponding periods in 2016 unless otherwise stated. Rounding off differences may arise.

Review

This year-end report has not been reviewed by the company's auditor Ernst & Young AB.

The Board of Directors' declaration

The Board of Directors and the CEO declare that the year-end report for the period January to December 2017 provides a true and fair overview of the Parent Company's and the Group's operations, financial position and results of operations as well as describing the material risks and uncertainties facing the Parent Company and other companies in the Group.

Stockholm, 6 February 2018

Pascal Chevalier	Gautier Normand
Chairman	Board member
Jérémy Parola	Erik Siekmann
Board member	Board member
Nils Carlsson	Matthias Stadelmeyer
Board member	President and CEO

Consolidated income statement

	Oct-Dec	Oct-Dec	Full year	Full year
SEK 000s	2017	2016	2017	2016
Net Sales	295,341	346,128	1,173,025	1,343,994
Cost of goods sold	-229,758	-265,049	-912,738	-1,041,753
Gross profit	65,583	81,079	260,287	302,241
Selling expenses	-45,534	-57,996	-180,923	-210,397
Administrative expenses	-15,634	-22,573	-59,813	-86,379
Development expenses	-12,451	-33,830	-33,466	-56,736
Other income and expenses	3,277	-	9,481	-
Operating profit	-4,759	-33,320	-4,435	-51,271
Net financial items	-3,349	22,427	1,170	8,614
Profit before tax	-8,108	-10,893	-3,265	-42,657
Tax	-1,688	-5,208	-6,571	-7,434
Net Profit	-9,796	-16,101	-9,836	-50,091

All earnings accrue to the parent company's shareholders.

Consolidated statement of comprehensive income

	Oct-Dec	Oct-Dec	Full year	Full year
SEK 000s	2017	2016	2017	2016
Profit for the period, after tax	-9,796	-16,101	-9,836	-50,091
Other comprehensive income
Items that subsequently will be reversed in the income statement
Translation difference, net after tax	7,121	-1,911	4,117	3,965
Total comprehensive income for the period, after tax	-2,675	-18,012	-5,719	-46,126
Comprehensive income attributable to:
Parent company shareholders	-2,675	-18,012	-5,719	-46,126

Earnings per share

	Oct-Dec	Oct-Dec	Full year	Full year
SEK	2017	2016	2017	2016
Earnings per share	-0.22	-0.38	-0.23	-1.18
Number of Shares
Weighted average	43,916,976	42,496,770	43,564,859	42,373,529
The earnings per share above apply before and after dilution.

Key ratios - Group

	Oct-Dec	Oct-Dec	Full year	Full year
	2017	2016	2017	2016
Gross profit (GP) / revenue (%)	22.2	23.4	22.2	22.5
EBITDA / revenue (%)	2.2	-0.6	2.0	-0.5
EBITDA / gross profit (GP) (%)	9.9	-2.7	8.9	-2.0
Equity/assets ratio (%)	28.7	23.7	28.7	23.7
Return on equity (12 months) (%)	-4.8	-22.0	-4.8	-22.0
Average number of employees	289	346	304	372
Return on Capital Employed (12 months) (%)	2.8	-5.4	2.8	-5.4
Working Capital end of period (SEK M)	-93	-162	-93	-162
Cash flow from operating activities per share, SEK	0.2	0.5	-1.7	-1.5
Equity per share, SEK	4.5	4.5	4.5	4.5
Stock price at the end of the period, SEK	3.2	4.9	3.2	4.9

Consolidated statement of financial position

	31 Dec	31 Dec
SEK 000s	2017	2016
Assets
Non-current assets
Goodwill	280,388	273,073
Intangible fixed assets	45,805	52,226
Tangible fixed assets	3,184	6,185
Other non-current receivables	4,693	4,882
Shares and participation in other companies	11,128	11,128
Deferred tax assets	18,177	19,143
Total non-current assets	363,375	366,636
Accounts receivable	250,703	260,902
Tax assets	7,821	7,733
Other current receivables	27,510	25,215
Short term investments	-	40,622
Cash & cash equivalents	68,662	169,198
Total current assets	354,695	503,671
Total assets	718,070	870,306
Shareholders' equity and liabilities
Shareholders' equity	205,521	206,529
Deferred tax liabilities	1,383	711
Other provisions	1,290	930
Bond loan	-	193,856
Contingent additional purchase price long term	1,600	12,437
Total non-current liabilities	4,272	207,934
Accounts payable	12,696	22,638
Current liabilities to publishers	257,942	250,318
Bond loan	132,946	-
Tax liabilities	2,581	4,606
Contingent additional purchase price short term	2,033	2,914
Other current liabilities	100,079	175,368
Total current liabilities	508,277	455,843
Total shareholder´s equity and liabilities	718,070	870,306

Consolidated statement of changes in equity

	Oct-Dec	Oct-Dec	Full year	Full year
SEK 000s	2017	2016	2017	2016
Opening balance	207,987	220,420	206,529	247,931
Total comprehensive income for the period	-2,675	-18,012	-5,719	-46,126
Equity-settled share-based payments	209	43	564	645
Decrease of shares in own custody	-	4,078	4,147	4,078
Closing balance	205,521	206,529	205,521	206,529

All capital accrues to the parent company's shareholders.

Consolidated statement of cash flows

	Oct-Dec	Oct-Dec	Full year	Full year
SEK 000s	2017	2016	2017	2016
Operating activities
Profit before tax	-8,108	-10,908	-3,265	-42,657
Adjustments for items not included in cashflow	9,380	14,904	-1,097	22,060
Income taxes paid/received	-1,507	-366	-6,696	1,710
Cashflow from operating activities before changes in working capital	-235	3,630	-11,058	-18,887
Changes in working capital	10,196	16,194	-62,620	-44,855
Cashflow from operating activities	9,960	19,826	-73,678	-63,742
Investing activities
Investments in intangible assets	-3,536	-7,652	-17,632	-33,613
Investments in tangible assets	-83	-894	-729	-2,132
Investments in financial assets	836	525	248	-10,799
Aquisition and disposal of subsidiaries	-	3,750	-1,423	3,750
Sale of short term investments	10,038	180	40,468	51,935
Cashflow from investing activities	7,254	-4,091	20,932	9,141
Financing activities
Repurchase of own bond	-	-28,552	-47,098	-28,552
Cashflow from financing activities	0	-28,552	-47,098	-28,552
Cashflow for the period	17,215	-12,817	-99,844	-83,153
Cash and cash equivalents
On the opening date	50,656	182,904	169,198	252,886
Translation difference in cash and cash equivalents	792	-888	-692	-536
Cash and cash equivalents on the closing date	68,662	169,198	68,662	169,198
Adjustments for non-cash items
Depreciation and impairment	11,251	31,118	27,629	45,102
Other	-1,872	-16,214	-28,725	-23,042
Total non-cash items	9,380	14,904	-1,097	22,060

Income statement – Parent company

	Oct-Dec	Oct-Dec	Full year	Full year
SEK 000s	2017	2016	2017	2016
Net Sales	17,443	13,580	67,568	69,762
Cost of goods sold	-2,397	-2,466	-8,709	-7,144
Gross profit	15,047	11,114	58,859	62,618
Selling expenses	-126	-95	-283	-421
Administrative expenses	-22,102	-22,069	-60,170	-80,928
Development expenses	-10,797	-31,284	-27,322	-46,970
Operating profit	-17,978	-42,333	-28,918	-65,702
Net financial items	2,659	25,670	12,818	23,227
Profit before tax	-15,319	-16,664	-16,099	-42,475
Tax	-29	-190	-29	-190
Net profit	-15,349	-16,853	-16,129	-42,664

Balance sheet – Parent company

	31 Dec	31 Dec
SEK 000s	2017	2016
Assets
Intangible assets	45,283	52,327
Equipment, tools, fixtures and fittings	1,398	2,251
Participation in group companies	183,163	189,263
Deferred tax assets	14,004	14,033
Total non-current assets	243,848	257,874
Accounts receivable	498	3,230
Receivables from Group companies	78,342	71,476
Tax assets	1,014	1,014
Other current receivables	4,603	6,892
Short term investments	-	40,622
Cash & cash equivalents	34,381	123,676
Total current assets	118,838	246,910
Total assets	362,686	504,783
Shareholders' equity and liabilities
Shareholders equity	82,383	93,802
Bond loan	-	193,856
Contingent additional purchase price long term	1,600	12,437
Total non-current liabilities	1,600	206,293
Accounts payable	3,687	12,744
Liabilities to Group companies	57,620	108,546
Bond loan	132,946	-
Contingent additional purchase price short term	2,033	2,914
Other liabilities	82,416	80,485
Total current liabilities	278,702	204,688
Total shareholder´s equity and liabilities	362,686	504,783

Quarterly summary

Consolidated income statement

	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Jul-Sep	Jan-Mar
SEK 000s	2017	2017	2017	2017	2016	2016	2016	2016
Net Sales	295,341	257,631	284,487	335,566	346,128	303,811	321,732	372,323
Cost of goods sold	-229,758	-197,252	-222,296	-263,431	-265,049	-233,990	-251,042	-291,673
Gross profit	65,583	60,379	62,191	72,134	81,079	69,821	70,690	80,650
Total costs	-70,342	-56,472	-67,953	-69,954	-114,399	-70,795	-77,692	-90,626
Operating profit	-4,759	3,907	-5,763	2,180	-33,320	-974	-7,001	-9,976
Net financial items	-3,349	-2,866	10,199	-2,813	22,427	-4,271	-4,441	-5,101
Profit before tax	-8,108	1,041	4,436	-633	-10,893	-5,245	-11,442	-15,078
Tax	-1,688	-1,088	-2,871	-924	-5,208	-955	410	-1,680
Net profit	-9,796	-47	1,565	-1,557	-16,101	-6,199	-11,032	-16,758

Consolidated statement of financial position

	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
SEK 000s	2017	2017	2017	2017	2016	2016	2016	2016
Assets
Intangible fixed assets	326,193	326,120	328,966	326,484	325,298	326,671	317,975	312,103
Other fixed assets	37,182	38,992	39,387	40,208	41,337	42,800	41,919	31,277
Current receivables	286,033	264,950	262,443	266,262	293,851	295,296	284,780	296,718
Short term investments	-	10,399	10,399	15,412	40,622	40,783	68,688	91,817
Cash & cash equivalents	68,662	50,656	87,143	159,475	169,198	182,904	158,002	230,228
Total assets	718,070	691,117	728,337	807,841	870,306	888,453	871,364	962,143
Shareholders' equity and liabilities
Shareholders' equity	205,521	207,987	212,418	205,519	206,529	220,420	221,580	230,055
Long-term non-interest bearing debt	2,672	2,441	2,470	16,122	14,078	1,873	1,765	1,854
Long-term interest bearing debt	-	132,674	132,401	193,129	193,856	247,584	247,311	247,039
Current non-interest bearing debt	376,930	348,015	381,048	393,072	455,843	418,577	400,708	483,195
Current interest bearing debt	132,946	-	-	-	-	-	-	-
Total shareholder´s equity and liabilities	718,070	691,117	728,337	807,841	870,306	888,453	871,364	962,143

Consolidated statement of cash flows

	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Jul-Sep	Jan-Mar
SEK 000s	2017	2017	2017	2017	2016	2016	2016	2016
Operating activities
Profit before tax	-8,108	1,041	4,436	-633	-10,908	-5,230	-11,442	-15,078
Adjustments for items not included in cash flow	9,380	-3,917	-11,947	5,387	14,904	368	4,957	1,831
Tax paid	-1,507	-3,847	-2,117	776	-366	-1,000	2,006	1,070
Cash flow from changes in working capital	10,196	-22,129	-15,406	-35,281	16,195	10,971	-71,825	-195
Cash flow from operating activities	9,960	-28,852	-25,034	-29,752	19,825	5,108	-76,304	-12,372
Cash flow from investing activities	7,254	-6,332	-479	20,488	-4,092	18,939	3,731	-9,437
Cash flow from financing activities	0	0	-46,562	-536	-28,552	0	0	0
Cash flow for the period	17,215	-35,185	-72,075	-9,799	-12,818	24,048	-72,574	-21,809
Cash and cash equivalents
On the opening date	50,656	87,143	159,476	169,198	182,904	158,002	230,228	252,886
Translation difference	792	-1,303	-258	76	-887	854	347	-849
Cash and cash equivalents on the closing date	68,662	50,656	87,143	159,476	169,198	182,904	158,002	230,228

Key ratios - Group

	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Jul-Sep	Jan-Mar
	2017	2017	2017	2017	2016	2016	2016	2016
Gross profit (GP) / revenue (%)	22.2	23.4	21.9	21.5	23.4	23.0	22.0	21.7
EBITDA / revenue (%)	2.2	4.1	-0.4	2.2	-0.6	1.2	-0.7	-1.4
EBITDA / gross profit (GP) (%)	9.9	17.3	-1.7	10.1	-2.7	5.2	-3.2	-6.6
Equity/assets ratio (%)	28.7	30.2	29.2	25.4	23.7	24.9	25.5	23.9
Return on equity last 12 months (%)	-4.8	-7.5	-10.3	-16.0	-22.0	-56.5	-58.7	-59.2
Average number of employees	289	284	305	339	346	361	379	401
Return on Capital Employed last 12 months (%)	2.8	1.8	0.7	-2.8	-5.4	-22.2	-23.2	-24.8
Working capital at the end of the period (SEK M)	-93	-81	-109	-125	-162	-130	-122	-193
Cash flow from operating activities per share, SEK	0.2	-0.7	-0.6	0.1	1.5	0.1	-1.8	-0.3
Equity per share, SEK	4.5	4.5	4.6	4.5	4.5	4.8	4.8	5.0
Stock price at the end of the period, SEK	3.2	4.0	5.0	5.0	4.9	5.5	6.3	5.5

Segments

	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Jul-Sep	Jan-Mar
SEK M	2017	2017	2017	2017	2016	2016	2016	2016
DACH
Net sales	39.2	33.8	41.1	51.2	51.4	46.5	48.6	55.9
EBITDA	3.7	2.5	3.3	5.0	1.8	4.3	3.2	5.5
France & Benelux
Net sales	79.1	66.8	68.9	85.9	79.4	66.0	70.2	85.7
EBITDA	4.7	2.6	2.6	5.6	4.3	2.4	1.9	2.9
Nordics
Net sales	84.4	66.2	72.5	80.5	92.1	73.0	70.9	82.3
EBITDA	6.5	5.3	4.2	7.4	8.6	8.0	6.4	6.6
South
Net sales	38.9	36.1	36.1	38.8	40.7	39.5	37.2	40.9
EBITDA	3.7	5.0	5.4	5.1	3.6	5.1	4.1	5.7
UK & Ireland
Net sales	53.7	54.8	65.7	79.1	82.6	78.9	94.8	107.6
EBITDA	0.9	2.2	0.8	2.2	-0.1	3.5	2.6	6.4
Group management & support functions
Net sales	-	-	-	-	-	-	-	-
EBITDA	-12.9	-7.1	-17.4	-18.0	-20.4	-19.5	-20.4	-32.5
Total
Net sales	295.3	257.6	284.5	335.6	346.1	303.8	321.7	372.3
EBITDA	6.5	10.5	-1.0	7.3	-2.2	3.6	-2.3	-5.3

Key ratios

Tradedoubler uses the key ratios of capital employed and equity to enable the reader to assess the possibility of dividend, implementation of strategic investments and the group's ability to meet financial commitments. Further, Tradedoubler use the key ratio EBITDA excluding change related items for investors to be able to understand the underlying business performance.

DEFINITIONS

Average number of employees

Average FTE (full-time employees) for the period, which includes permanent, temporary and hired consultants.

Capital employed

Total assets less current and long-term noninterest-bearing liabilities, including deferred tax liabilities.

Cash flow from operating activities per share

Cash flow from operating activities divided by average number of outstanding shares.

Change related items

The purpose of disclosing change related items separately is to make it easier for the reader to understand the underlying yearon-year development.

EBITDA

EBITDA is revenue before tax, net financial items and depreciation/amortization and impairment.

EBITDA / Gross profit

EBITDA divided by gross profit.

EBITDA-margin EBITDA as a percentage of revenue.

EBITDA / Revenue EBITDA divided by net sales.

Equity/assets ratio Shareholders' equity as a percentage of total assets.

Equity per share

Shareholders' equity divided by the number of outstanding shares.

Gross profit (GP) /Revenue Gross profit divided by net sales.

Net margin Profit after tax as a percentage of sales.

Operating margin

Operating profit as a percentage of revenue.

Return on shareholders' equity

Revenue for the period as a percentage of the average shareholders' equity, calculated as open and closing shareholders' equity divided by two.

Return on capital employed

Operating profit plus interest income as a percentage of average capital employed, calculated- as opening and closing capital employed divided by two.

Revenue per share

Revenue of the year divided by the average number of shares.

Revenue per share before and after dilution Revenue of the year divided by the average number of shares after full dilution.

Share price / equity Share price divided by shareholder's equity per share.

Stock price at the end of the period Tradedoubler's share price last trading day for the period.

Working capital

Total current assets less cash and cash equivalents, short term investments and total current liabilities.

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