artnet AG — Interim / Quarterly Report 2022

Aug 15, 2022

Artnet AG

Six Month Report 2022

Artnet The Art World Online

Since 1989, Artnet has revolutionized the way collectors, professionals, and art enthusiasts discover and collect fine art today. Artnet's founder, Hans Neuendorf, provided a clear vision from the outset: to create the leading online resource for the international art world – a trusted and transparent global marketplace to buy, sell, and research fine art.

As the art market continues its digital transformation, our purpose remains more relevant now than ever. The art market had been one of the last bastions resisting the adoption of online commerce. Today, we have witnessed a radical shift in mentality in the industry, and Artnet's long held vision of a transparent, digital art market is becoming a reality. With that in mind, the future is looking bright. Artnet continues to strive towards its vision, and is positioned to lead and guide the art world in its shift towards a digitally driven market, as it has done since its inception.

Introducing the renewed Price Database: A New Era of Art Market Insights

Table of Contents

• 1. Message from the Chief Executive Officer
• 1. Half Year Business Highlights
• 1. Business Model and Artnet Group Organization
• 1. Economic Development of the Artnet Group
• 1. Segments: Media, Marketplace, Data
• 1. Technology Update
• 1. Message from the Chief Marketing Officer
• 1. ESG Report
• 1. Risks and Opportunities
• 1. Result of Operations, Financial Status, and Net Assets
• 1. Subsequent Report
• 1. Outlook
• 1. Responsibility Statement
• 1. Consolidated Financial Statements as of June 30, 2022
• 1. Artnet AG Consolidated Balance Sheet
• 1. Artnet AG Consolidated Income Statement
• 1. Artnet AG Consolidated Statement of Cash Flows
• 1. Artnet AG Consolidated Statement of Changes in Shareholder Equity (USD and EURO)
• 1. Notes to the Consolidated Financial Statements 2022
• 1. Useful information for Shareholders

Supervisory Board

Dr. Pascal Decker Hans Neuendorf Prof. Dr. Michaela Diener

Executive Team

Jacob Pabst Chief Executive Officer

Alanna Lynch Chief Operating Officer

Officer

Quentin Rider Chief Technology

Brewster Fine President

Message from the Chief Executive Officer

Jacob Pabst, CEO

Dear Shareholders,

Artnet has undergone transformational changes in the last six months. Focussed on our vision for a transparent, efficient, and empowering global art market, we have built strong momentum in our technological development and initiated key operational projects. The company has welcomed talented new team members that are already proving to be instrumental, and I have never been more confident about Artnet's future.

Simultaneously, the first half of 2022 has unfortunately been mired by an increasingly uncertain economic outlook. Higher than expected inflation, partially caused by the Russian invasion of Ukraine and global supply shortages, have triggered a tightening of monetary policy, particularly in the major economies. As a result, global output contracted in the second quarter, following strong downward pressure in the US, China, and EU. This has led baseline forecasts for the rest of 2022 to be revised significantly downwards.

Artnet was able to record 8% revenue growth through the second quarter of the year. This follows a solid overall first quarter, and the continued strong upwards momentum of the Media segment. However, Artnet's subscription and transactional businesses have underperformed relative to expectations in the second quarter as the industry adjusts to the new macroeconomic realities.

The Media segment achieved a remarkable 72% revenue growth through June, led by forceful demand from Artnet's advertisers. High audience engagement and strong brand positioning allow Artnet to maintain deep client loyalty and yield high CPM rates. Artnet News achieved a 78% increase in pageviews YoY in the second quarter, showcasing the continued scalability of the platform's readership.

Artnet's Data segment has remained largely steady through the second quarter, recording a slight decline of 2%. That said, the rest of the year looks positive. Our technology team has completely rebuilt the price database, with a highly anticipated, fully modernized mobile-first user experience to be released in Q3. This includes a restructured data architecture, allowing Artnet to offer API services and bespoke functionalities for its art world and financial industry clients alike.

This marks the conclusion of project Falcon, with which Artnet tackled the establishment of the critical foundations needed for the modernization and re-creation of the platform's applications. These are the frontend- and backend architecture as well as the CI/CD (continuous integration / continuous deployment) pipeline to ensure rapid and robust new functionality production. From this point on all new applications will be based on these new technological cornerstones.

The Marketplace segment has suffered a 13% decline through June. While Prints & Multiples and Photography have remained strong growth drivers for Auctions in line with targets, Post-war and Contemporary sales have not been able to achieve their goals. Galleries have also pulled back on subscriptions following a decline in sales activity in the broader market. Key strategic and operational changes, as well as significant platform improvements are set to drive results for the second half of the year however.

While there may be a challenging economic environment ahead, Artnet benefits from a robust business model predicated upon a diverse, highly synergistic product range. The enormous potential held within each of Artnet's core business lines remains clear, and our leading position as the digital platform for the global art market has never been stronger. I am proud to say we have a world class team of talented leaders, and together with them I am excited to take Artnet to its promising future.

Finally, ahead of our Annual General Meeting at the end of August, I would like to take this opportunity to reiterate an important message to our valued shareholders. Artnet is respected globally as a business built on integrity and transparency. We are the trusted resource that our industry relies on for unbiased information. This strong belief permeates through every level of our internal culture. I would like to thank our shareholders for their continued support in allowing artnet to uphold its purpose and independence, as this is fundamental to its value and continued relevance in our industry.

Sincerely,

Jacob Pabst Chief Executive Officer Berlin, August 15, 2022

Half Year 2022 Business Highlights

114 Million

Pageviews within the first Half Year

425,000 USD

Auction record for a Lichtenstein print

42 Million Pageviews on Artnet News +78% YoY for Q2

+72% Revenue growth within the Media Segment

957 Articles published on Artnet News

1st

NFT drop on ArtNFT Sold out within hours

3 Charity Auctions Benefiting Ukraine and LGBTQ initiatives

Partnership

with China's Poly Auction

Revenue Breakdown per Segment

38% Marketplace 29% Data 33% Media

Marketplace Demographic

5

Business Model and Artnet Group Organization

Artnet AG is a holding company listed on the Prime Standard segment of the Frankfurt Stock Exchange. Artnet AG's principal holding is its wholly-owned subsidiary, Artnet Worldwide Corporation, formed in 1989 in New York. Artnet AG ("Artnet" or the "Company") and Artnet Worldwide Corporation ("Artnet Corp.," collectively the "Artnet Group", the "Group", or the "Company") operate under the trade name "Artnet." Artnet Worldwide Corp. has a wholly-owned subsidiary, Artnet UK Ltd., based in London.

Artnet's purpose is to provide art collectors, galleries, auction houses, publishers, and enthusiasts with a holistic global ecosystem to buy, sell, and research fine art. The provision of timely information about market movements, price developments, exhibitions, news, and reviews enables Artnet's users to navigate the art market in the most efficient way. Our vision is to be the leading online resource for the international art world, powered by three core, highly synergistic pillars:

Data

Artnet's market data is a mission-critical resource for the art industry, encompassing more than 15 million auction results and AI- and ML-driven analytics providing an unparalleled level of transparency and insight into the art market. Artnet's independence as an objective information provider is key to the trusted reputation it has built.

Marketplace

Artnet's marketplace connects leading galleries and auction houses with a global audience, offering a curated selection of over 250,000 artworks for sale worldwide. A core element of the Marketplace, Artnet Auctions, a pioneering online-only auction platform, offers unprecedented reach, liquidity, and efficiency for buyers and sellers.

Media

Artnet News covers the events, trends, and people shaping the global art market with up-to-the-minute analysis and expert commentary. With 60 million unique users annually, Artnet is the largest global platform in the fine art industry, with a rapidly growing, and dedicated audience.

David Yarrow, Desert Flight, 2014, sold on Artnet for 18,750 USD in the EARTH DAY charity auction

Economic Development

Global Economic Development

The global economy entered 2022 in a weaker position than previously expected and continues to suffer from a series of destabilizing shocks. Compounding the damage from the COVID-19 pandemic, the Russian invasion of Ukraine has magnified the slowdown in the global economy, which is entering what is forecasted to become a period of feeble growth and elevated inflation, according to the World Bank's latest Global Economic Prospects report. More specifically, continued lockdowns in China and the war in Ukraine are leading to supply disruptions and high commodity prices, exacerbating inflation and contributing to tighter financial conditions, magnifying financial vulnerability, and heightening policy uncertainty.

Global growth is expected to slump from 5.7 percent in 2021 to 2.9 percent in 2022— significantly lower than the 4.1 percent that was anticipated in January 2022. It is expected to hover around that pace over 2023-24, as the war in Ukraine disrupts activity, investment, and trade in the near term, pent-up demand fades, and fiscal and monetary policy accommodation is withdrawn. Global inflation is expected to moderate next year but it will likely remain above inflation targets in many economies.

The declining global growth, inflationary pressure, and financial markets instability is expected to have a moderate impact on performance.

Art Market Development

The art market, like several other industries, has gone through a challenging and transformative period since 2020. The broad adoption of online transactions catalyzed by the global pandemic has continued, signaling a long term shift towards a digitally driven art industry. Additionally, art has increasingly developed into a viable alternative asset class, seen by many as a hedge against inflation.

With the growth of online transactions, digital art purchases have enticed new buyer segments, with younger, tech-savvy collectors, often unknown to established galleries and fairs, entering the market and driving demand. The demographic within our Marketplace segment supports this assessment. This more diverse buyer base contributed to the industry's strong performance during 2021 and has enriched the sector as a whole.

However, the worsening global macroeconomic outlook is showing signs of a negative impact on art market activity. Compared to 2021, 2022 so far is painting a more subdued picture, with average transaction prices down 50% across the major auction houses (Source: Artnet Data Science), and the market for Contemporary Art showing a 30% decline in volumes sold at auction despite stability in some other subsectors of the market. Overall, the industry's continued demand for data, information, and online transactions is predicted to ensure the Company is only moderately impacted by the worsened economic outlook.

Media

Artnet's Media Segment includes Artnet News, Artnet News Pro, Sponsorships, and Advertising

Artnet informs, engages, and connects members of the art community to the events, trends, and people shaping the market and global art industry through timely articles, expert analyses, and insightful opinion pieces. With Artnet News Pro, a partial paywall, Artnet offers its most engaged subscribers critical, datadriven editorial. Artnet News' journalists are able to leverage Artnet's rich data to give our readers an unparalleled level of insight into the art market. Artnet News generated a record 42 million pageviews in the second quarter, a 72% YoY increase.

Artnet News' strategic focus on high quality art industry specific journalism attracts a vast, engaged audience that is a desirable target for advertisers from the art world, as well as the luxury goods market, and the financial community. Media revenue increased 72% YoY to 4,215k USD during the first six months of 2022 (2021: 2,450k USD). Artnet has been able to establish deep, stable relationships with its luxury advertising partners built on high performance and trust, with Chanel, Hermès, and Cartier among the Group's many returning clients.

NetJets Art Inspired Itinerary

La Prairie Frieze NY Carla Chan Collaboration

Piaget Art Collaboration

Artnet is also successfully leveraging its brand to build creative partnerships while maintaining its impartial and transparent journalistic standards. Published in April, the recent Artnet Intelligence Report, created in conjunction with the Artnet Data Science team, was sponsored by Morgan Stanley.

Central to its strategy of creating an efficient, community based global marketplace driven by contextual content and data, Artnet News Pro has continued to grow Artnet's core audience and drive engagement with the platform. Artnet News Pro now boasts 3,600 members and continues to grow.

The front cover of the spring 2022 edition of the Artnet 'Intelligence Report'

Marketplace

Artnet's Marketplace segment includes Artnet Galleries, Artnet Auctions, as well as the ArtNFT platform. Offering B2B as well as B2C transactions, the Marketplace is a global transactional platform for fine art and design. Several key milestones were achieved in the first half of the year despite a YoY decline in revenues.

The Spring Premier Prints & Multiples sale set a record for the highest revenue generating sale in the category's history. Eight auction records were set in the sale, with worldwide bidding resulting in over 220 individual bids and over 50% of the works exceeding their high estimate. The top lot of the sale was Roy Lichtenstein's 1994 Nude with Yellow Pillow, which realized USD 425,000 and set a new world auction record.

Roy Lichtenstein, Nude with Yellow Pillow (from the Nude series), 1994, sold on Artnet for 425,000 USD

A key milestone in the business's global expansion, the Company formally announced a landmark partnership with Poly Auction, Asia's largest auction house. Set to take place in summer 2022, this sale is the debut event in an ongoing collaboration and is aimed at expanding the scope and reach of consignment and buying opportunities for collectors across the globe.

Artnet's ArtNFT site hosted its second-ever NFT sale in March 2022. ArtNFT: Feels Rare Man closed with a sell-through by volume of 91%. The sale also offered the Company's first-ever NFT "drop", in which 90 editions of an NFT token were available for immediate purchase. The full edition sold out within 48 hours of the initial drop. Following YOY growth in Q1 2022, Auctions performance varied by category in Q2. Prints & Multiples as well as photography performed well, with 6% growth YoY.

Artnet Galleries have shown a decline, with gallery partners citing worsening economic conditions as a key reason for the need for cancellation. Key technology roadmap items to be released in the second half of the year following the launch of the renewed Price Database are focussed on ensuring the success of Artnet's gallery partners through the slower market conditions.

Revenue from the Marketplace segment overall decreased 13% YoY to USD 4,915k within the first half of the year (2021: USD 5,625). Following record breaking sales in May 2021, the Post-War & Contemporary team faced headwinds in Q2 2022 with fierce post-pandemic competition. Following a full strategic and operational review with a focus on revenue driving opportunities, the department is set for a stronger H2.

Carmen Herrera, Island, 2020, sold on Artnet for 15,000 USD in IFPDA x Artnet charity auction benefitting Ukraine

In line with Artnet's ESG initiatives, Artnet Auctions hosted 3 sales with philanthropic components during the first half of the year:

EARTHDAY: Land, Sea and Sky (May 2022):

Benefitting EARTHDAY.ORG's The Canopy Project, which has planted millions of trees in their efforts for a more sustainable future. Working worldwide to strengthen communities during these initiatives, they've nearly planted 7.8 billion trees.

IFPDA x Artnet: Editions for a Cause (June 2022):

In partnership with the International Fine Print Dealers Association (IFPDA), Artnet offered an auction of coveted editions to benefit Ukraine relief initiatives. All of IFPDA's proceeds from the auction, in addition to 50% of Artnet's buyer's premium, were allocated to initiatives by Global Empowerment Mission (GEM) and World Central Kitchen (WCK) focused on providing aid to the humanitarian crisis in Ukraine - in total, \$94,000 was raised for these organizations.

Embrace: Celebrating Pride (June 2022):

Benefitting GLSEN, an organization that exists to create safe and affirming schools for all K-12 students, regardless of sexual orientation, gender identity, or gender expression.

Data

The Data segment of the company includes the Price Database, Artnet Analytics, and Market Alerts

Artnet is the industry's critical data provider. With over 15 million auction results, the Price Database is an essential research tool for all market participants. Partnerships with Artfacts for primary market data as well as Berlin's Humboldt University for NFT data offer our clients comprehensive insight into additional aspects of the market.

We are excited to announce that a completely redesigned, UX/UI optimized, and intuitive Price Database will be rolled out during the third quarter of 2022. The overarching goal of the new Price Database is to provide an enhanced, mobile first experience that allows for optimized search and navigation. The release includes graphical analyses and indicators that enable users to build a deep understanding of artist and artwork value. A restructured data architecture unlocks the ability to create API connectivity with bespoke functionalities and experiences.

Please find an exclusive first look at the redesigned price database below:

Price Database Rebuild: a completely new user experience, with critical contextual analytics in a mobile first environment driven by elastic search.

During the first half of 2022, revenue from the Data segment declined 2% YoY to USD 3,785k (2021: USD 3,868k). Revenue is expected to increase during the third and fourth quarters due to the release of the redesigned Price Database. A focus on retail users, driven by the mobile first design, is set to drive usage and engagement.

Technology Update

The technology team completed several critical projects through the first half of 2022, with new management and a strengthened team making strong headway as Artnet focusses on front-end product development.

Artnet's website forms the foundation of its products and services. It is crucial to keep pace with the latest technological developments in order to enhance the user experience and ensure continued growth.

The completion of the Price Database in Q3 marks the conclusion of project Falcon, with which Artnet tackled the establishment of the critical foundations needed for the modernization and re-creation of the platform's applications. These are the frontend- and backend architecture as well as the CI/CD (continuous integration / continuous deployment) pipeline to ensure rapid and robust new functionality production. From this point on all new applications will be based on these new technological cornerstones.

In 2022 so far the focus has been on building core elements of the next generation platform. User account unification and security, key page viewability upgrades, and a new data architecture have all been critical releases. The first product to be released on the new platform is the Price Database. The release of a unified navigation, a modernized homepage, and renewed key pages are amongst the key impact items scheduled for the remainder of the year.

Unified Navigation: a single experience across Artnet's segments, combining into an enhanced user experience, and a crucial step towards realizing the synergies between Artnet's segments

Message from the Chief Marketing Officer Rob Baker

Artnet has driven innovation with its products, from delivering price transparency, news, and data, to creating a seamless fine art buying and selling experience online. As the world continues to rethink what it means to live and work virtually, Artnet is poised to move to the next stage of its growth as a company.

I love building strong, cultural brands and the communities that value them. In an increasingly competitive marketplace, it is more important for us to create more meaning and value in our brand in the minds of collectors and sellers alike and to elevate what distinguishes us; the quality of our information and data, our deep understanding of the marketplace, and our unique product offering.

Rob Baker, Chief Marketing Officer

'Artnet has driven innovation with its products, from delivering price transparency, news, and data, to creating a seamless fine art buying and selling experience online.'

Responsibility ESG Report

Artnet published its voluntary, audited ESG report in conjunction with the Annual Report 2021.

Artnet values its role in assisting clients in engaging with fine art and collectibles. Whether Artnet's clients are researching, evaluating, buying, or selling art, they count on the Company to understand both the cultural and commercial value of art — and to ensure the responsible sale of their fine and decorative art in a transparent, efficient, and sustainable way.

The report was prepared in accordance with globally accepted reporting standards and provides information on Artnet's objectives and measures relating to different stakeholders, which include our clients, employees, suppliers, shareholders, and society and the environment in general. Artnet is proud to be a member of the Deutsche Boerse ESG Hub, which counts Lufthansa AG and Siemens Energy AG as members. The Artnet ESG report can be found on Artnet's Investor Relations page.

Artnet's New London Offices at Cromwell Place

Risks and Opportunities

Artnet operates in a competitive unique niche market. To monitor and adapt to a changing landscape, Artnet continuously observes internal and external risks and opportunities. There have been material changes in the risk profile of the Company as compared to the 2021 reporting year.

Firstly, global socioeconomic unrest may put downward pressure on the art industry. Management is closely watching industry performance in order to rapidly adapt to changing conditions. Management is predicting the worsening global economic outlook to have a moderate impact on performance.

The 2021 Annual Report contains a detailed overview of all opportunities and risks as of the date of its release.

Subsequent Report

Between the end of the second quarter of 2022 and the date of this report, no significant events occurred that affected the Company's financial performance and fiscal situation that are in addition to the Risk and Opportunity Report and the Subsequent Report of the 2021 Annual Report.

Gross profit from sales in the first six months of 2022 increased by 317k USD to 7,282k USD due to higher revenue as compared to 2021. This is primarily due to excellent results from the Media segment.

Sales and marketing expenses in the first six months of 2021 increased by 967k USD to 4,226k USD as compared to 2021, mainly due to increased costs in Sales and investments in an expanded Marketing and Artnet News team.

General and administrative expenses totaled 2,668k USD, a slight increase from 2,186k USD last year.

Artnet offices/headquarters, Woolworth Building, New York, NY

Changes in Costs and Results

Product development expenses decreased by 232k USD to 1,574k USD as compared to last year (2021: 1,807k USD). The company has completed its Project FALCON, making it much more cost-efficient, agile, and faster. The project is the most significant undertaking in the Company's history. By investing in state-ofthe-art infrastructure, Artnet will quickly adapt to technological changes, build economies of scale, and launch new products much more efficiently.

As a result of higher sales and marketing as well as administrative costs, Operating Income fell to (-1,187k) USD as compared to 2021 (287k) USD. This is primarily due to increased network maintenance costs and sales and administrative expenses.

Consolidated earnings before income taxes in the first six months of 2022 and 2021 totaled -1,268k USD and -311k USD, respectively.

Result of Operations, Financial Status, and Net Assets

Artnet generates its revenue primarily in US dollars. The headquarters of Artnet's subsidiary, Artnet Worldwide Corp., is located in New York, the global center of the art market, and thus incurs its expenses mainly in US dollars. Therefore, the Group presents its results in US dollars. The impact of the USD/EUR currency exchange will be described in a separate section.

Result of Operations

The Group's revenue during the first half of the 2022 fiscal year increased 8% to USD 12,915k, showing slower growth than expected. This is primarily due to lower than expected performance in the Marketplace segment.

Income from operations decreased to USD -1,187k YoY (2021: USD -287k). This was primarily due to increases in Network Maintenance cost, Artnet News personnel cost, as well as investments in the expanded executive team.

Financial Position

The Group's cash flow from operating activities in the first six months of 2022 totaled USD 2,094k (2021: USD 378k).

The Group's cash flow from investing activities in the first six months of 2022 was USD -741k (2021: USD -380k), respectively. This is primarily due to product development associated with the Data segment and general improvements to the website.

The Group's cash flow from financing activities in the first six months of 2022 was USD -1001k (2021:USD -613k). The higher cash outflow from financing activities was due to adoption of IFRS 16 with office lease.

As of June 30, 2022, cash and cash equivalents amounted to USD 1,094k compared to USD 1,221k on June 30, 2021. The decrease is mainly due to increase in network maintenance and Artnet News personnel costs.

The cash investment policy for the Group is conservative and based on shortterm investments. This policy allows all cash to be liquid and available. As of June 30, 2022, the liquidity per share totaled 0.19 USD (0.19 EUR) based on an average of 5,627,986 shares in circulation compared to 0.22 USD (0.18 EUR) on

June 30, 2021.

Financial Status

Consolidated total assets on June 30, 2022, totaled USD 12,373k which is higher compared with the balance sheet total of USD 12,315k on December 31, 2021.

Trade accounts receivables amounted to 2,947k USD, as compared to December 31,2021 (2,986k USD). The increase was attributable to increased revenue from luxury Advertising revenue in the second quarter, which usually has a longer collections cycle.

Intangible assets increased by 539k USD to 5,138k USD, as compared to December 31, 2021. This increase was mainly due to the capitalization of investments into technological infrastructure (Falcon), partly offset by amortization of 167k USD.

Current liabilities have increased by 1,621k USD to 8,576k USD since December 31, 2021, mainly due to an increase in deferred revenue in the Media segment and Data subscription revenue.

As of June 30, 2022, the Group's consolidated equity decreased slightly by 1,212k USD to 3,797k USD, due to the decrease in the current net profit.

The Price Database constitutes an internally developed intangible asset that has been developed by gathering auction information, with results dating back to 1985. This valuable asset has not been attributed to full earnings recognition on the balance sheet due to accounting rules. The balance sheet assets and the Group's consolidated equity would substantially increase if the law allowed this recognition.

Currency Conversion

Currency conversion in the consolidated statement of comprehensive income is based on the average exchange rate for the period between January 1 to June 30, 2022.

For the period before June 30, 2022, the average exchange rate was 0.915 USD/ EUR, as compared to 0.830 USD/EUR in the same period in 2021. Currency conversion for the balance sheet is based on the exchange rate at the end of the period. As of June 30, 2022, the rate was 0.956 USD/EUR, compared to 0.879 USD/ EUR on December 31, 2021. Artnet is subject to exchange rate fluctuations because it invoices in euros, U.S. dollars, and British pounds but conducts most of its business in the United States. The Group works to reduce its exposure to differences in the exchange rates by billing European customers in euros and British customers in pounds and by paying vendors in the same currency with these cash funds. Currency translation adjustments arising from the valuation of intercompany loan receivables, which qualify as part of a net investment, are not reflected in the profit or loss of the Group but are recognized in the foreign currency adjustment item. The currency translation adjustment will be reclassified from equity to profit or loss when the net investment is returned fully or in part.

Ed Ruscha, Mocha Standard, sold on Artnet during Q1 for 150,000 USD

Outlook

In 2022 the global outlook appears mired by economic and geopolitical issues. The US economy recorded two consecutive quarters of negative GDP growth, and the turbulence seen in financial markets point to uncertainty and bearish sentiment. Following rising inflationary pressures driven by global supply disruptions, monetary policy responses have tightened significantly and inflation expectations remain high. There is concern that uncertainty and increasing interest rates will lower demand in the fine art and luxury collectibles market.

Despite this, management is forecasting continued growth for the remainder of the financial year. Artnet's diversified business model has proven robust through downturns, and important strategic, operational, and technology updates are expected to have a positive impact on revenues in the second half of 2022. The renewed Price Database,a Unified Navigation, and a modernized Homepage will significantly increase not only the usability of the Artnet platform, but also begin to realize the synergies between the Media, Marketplace, and Data segments.

The media segment is expected to continue on its forceful growth trajectory, with a robust pipeline of advertising contracts and healthy demand for Artnet News Pro expected to carry on through the rest of the year. Artnet's marketplace segment is expected to grow strongly in the second half of the year, with crucial strategic and operational changes, as well as key revenue driving hires set to have a positive impact. Data revenue is set to grow moderately through December following the release of the redesigned price database.

Management believes that Artnet has the foundational brand strength and broad product suite to lead the online art market for years to come and is making the necessary investments to obtain long term market share and profitability.

Hotdesking facilities at Artnet's New London Offices at Cromwell Place

Responsibility Statement

To the best of all knowledge, and in accordance with the applicable reporting principles, the following consolidated financial statements give a true and fair view of the assets, liabilities, financial position, and profit or loss of Artnet AG. Artnet AG's Management Report includes a fair review of the development and performance of the business, as well as the position of the Group, along with a description of the principal opportunities and risks attributed to the expected Group development.

Berlin, August 15, 2022

Jacob Pabst Chief Executive Officer, Artnet AG

Consolidated Financial Statements

artnet AG Consolidated Balance Sheet As of June 30, 2022

Current Assets Current Assets Current Assets	06/30/2022 USD	12/31/2021 USD	06/30/2022 EUR	12/31/2021 EUR
Cash and Cash Equivalents	1.094.451	674.591	1.045.748	592.965
Cash and Cash Equivalents	1.094.451	674.591	1.045.748	592.965
Accounts Receivable	2.947.128	2.986.013	2.815.981	2.624.705
Accounts Receivable	2.947.128	2.986.013	2.815.981	2.624.705
Other Current Assets	650.637	650.800	621.684	572.053
Other Current Assets	650.637	650.800	621.684	572.053
Total Current Assets	4.692.216	4.311.404	4.483.413	3.789.723
Total Current Assets	4.692.216	4.311.404	4.483.413	3.789.723
Non-Current Assets Non-Current Assets
Property, Plant and Equipment	922.853	1.497.425	881.786	1.316.237
Property, Plant and Equipment	922.853	1.497.425	881.786	1.316.237
Intangible Assets	5.137.598	4.598.457	4.908.975	4.042.044
Intangible Assets	5.137.598	4.598.457	4.908.975	4.042.044
Security Deposits	80.100	367.818	76.536	323.312
Security Deposits	80.100	367.818	76.536	323.312
Deferred Tax Assets	1.540.226	1.540.226	1.471.686	1.353.859
Deferred Tax Assets	1.540.226	1.540.226	1.471.686	1.353.859
Total Non-Current Assets	7.680.777	8.003.926	7.338.983	7.035.452
Total Non-Current Assets	7.680.777	8.003.926	7.338.983	7.035.452
TOTAL ASSETS	12.372.993	12.315.330	11.822.396	10.825.175
TOTAL ASSETS	12.372.993	12.315.330	11.822.396	10.825.175
EQUITY AND LIABILITIES EQUITY AND LIABILITIES
Current Liabilities Current Liabilities
Accounts Payable	1.620.021	927.626	1.547.930	815.383
Accounts Payable	1.620.021	927.626	1.547.930	815.383
Accrued Expenses and Other Accrued Expenses and Other Liabilities Liabilities	2.442.032 2.442.032	1.764.028 1.764.028	2.333.362 2.333.362	1.550.581 1.550.581
Provisions	- 0	- 0	- 0	- 0
Provisions	- 0	- 0	- 0
Liabilities from Finance Leases - Liabilities from Finance Leases - short term short term	1.133.973 1.133.973	1.764.279 1.764.279	1.083.511 1.083.511	1.550.801 1.550.801
Deferred Revenue	3.380.246	2.498.907	3.229.825	2.196.539
Deferred Revenue	3.380.246	2.498.907	3.229.825	2.196.539
Loans	- 0 - 0	- 0 - 0	- 0 - 0	- 0
Total Current Liabilities	8.576.272	6.954.840	8.194.628	6.113.304
Total Current Liabilities	8.576.272	6.954.840	8.194.628	6.113.304
Long-Term Liabilities Long-Term Liabilities
Liabilities from Finance Leases - Liabilities from Finance Leases - long term long term	- 0 - 0	351.585 351.585	- 0 - 0	309.043 309.043
Loans	- 0 - 0
Total Long-Term Liabilities	- 0	351.585	0	309.043
Total Long-Term Liabilities	- 0	351.585	0	309.043
Total Liabilities	8.576.272	7.306.425	8.194.628	6.422.347
Total Liabilities	8.576.272	7.306.425	8.194.628	6.422.347
Shareholders´ Equity Shareholders´ Equity
Common Stock	6.032.262	6.032.262	5.706.067	5.706.067
Common Stock	6.032.262	6.032.262	5.706.067	5.706.067
Treasury Stock	(269.241)	(269.241)	(264.425)	(264.425)
Treasury Stock	(269.241)	(269.241)	(264.425)	(264.425)
Additional Paid-In Capital	52.547.769	52.547.769	51.118.251	51.118.251
Additional Paid-In Capital	52.547.769	52.547.769	51.118.251	51.118.251
Accumulated Deficit	(53.893.052)	(52.952.049)	(52.608.840)	(51.812.939)
Accumulated Deficit	(53.893.052)	(52.952.049)	(52.608.840)	(51.812.939)
Current Net Profit	(1.279.639)	(941.003)	(1.171.322)	(795.901)
Current Net Profit	(1.279.639)	(941.003)	(1.171.322)	(795.901)
Foreign Currency Translation	658.621	591.167	848.037	451.775
Foreign Currency Translation	658.621	591.167	848.037	451.775
Total Shareholders´ Equity	3.796.721	5.008.905	3.627.768	4.402.828
Total Shareholders´ Equity	3.796.721	5.008.905	3.627.768	4.402.828
				10.825.175
Total Liabilities and Total Liabilities and Stockholder's Equity Stockholder's Equity	12.372.993 12.372.993	12.315.330 12.315.330	11.822.396 11.822.396	10.825.175

artnet AG Consolidated Income Statement For the Period from January 1 to June 30, 2022

	1/1/22	1/1/21	1/1/22	01/01/2021	1/1/22	01/01/2021	01/01/2022	01/01/2021
	1/1/22	1/1/21	1/1/22	01/01/2021	1/1/22	01/01/2021	01/01/2022	01/01/2021
	6/30/2022	6/30/2021	6/30/2022	6/30/2021	6/30/2022	6/30/2021	6/30/2022	6/30/2021
	1/1/22	1/1/21	1/1/22	01/01/2021	1/1/22	01/01/2021	01/01/2022	01/01/2021
	6/30/2022	6/30/2021	6/30/2022	6/30/2021	6/30/2022	6/30/2021	6/30/2022	6/30/2021
	1/1/22	1/1/21	1/1/22	01/01/2021	1/1/22	01/01/2021	01/01/2022	01/01/2021
30-Jun-22 30-Jun-22	6/30/2022 USD 6/30/2022 USD 6/30/2022	6/30/2021 USD 6/30/2021 USD 6/30/2021	6/30/2022 EURO 6/30/2022 EURO 6/30/2022	6/30/2021 EURO 6/30/2021 EURO 6/30/2021	6/30/2022 USD 6/30/2022 USD 6/30/2022	6/30/2021 USD 6/30/2021 USD 6/30/2021	6/30/2022 EURO 6/30/2022 EURO 6/30/2022	6/30/2021 EURO 6/30/2021 EURO 6/30/2021
30-Jun-22 Revenue 30-Jun-22 Revenue 30-Jun-22	USD USD USD	USD USD USD	EURO EURO EURO	EURO EURO EURO	USD USD USD	USD USD USD	EURO EURO EURO	EURO EURO EURO
Revenue artnet Marketplace Revenue artnet Marketplace Revenue	4.915.219 4.915.219	5.625.400 5.625.400	4.499.166 4.499.166	4.668.808 4.668.808	2.395.691 2.395.691	3.188.423 3.188.423	2.253.407 2.253.407	2.646.540 2.646.540
artnet Marketplace	4.915.219	5.625.400	4.499.166	4.668.808	2.395.691	3.188.423	2.253.407	2.646.540
artnet Galleries	2.402.956	2.633.223	2.199.556	2.185.447	1.182.302	1.351.449	1.111.537	1.121.797
artnet Marketplace	4.915.219	5.625.400	4.499.166	4.668.808	2.395.691	3.188.423	2.253.407	2.646.540
artnet Galleries	2.402.956	2.633.223	2.199.556	2.185.447	1.182.302	1.351.449	1.111.537	1.121.797
artnet Marketplace	4.915.219	5.625.400	4.499.166	4.668.808	2.395.691	3.188.423	2.253.407	2.646.540
artnet Galleries	2.402.956	2.633.223	2.199.556	2.185.447	1.182.302	1.351.449	1.111.537	1.121.797
artnet Auctions	2.512.263	2.992.177	2.299.610	2.483.361	1.213.389	1.836.974	1.141.870	1.524.743
artnet Galleries	2.402.956	2.633.223	2.199.556	2.185.447	1.182.302	1.351.449	1.111.537	1.121.797
artnet Auctions	2.512.263	2.992.177	2.299.610	2.483.361	1.213.389	1.836.974	1.141.870	1.524.743
artnet Galleries	2.402.956	2.633.223	2.199.556	2.185.447	1.182.302	1.351.449	1.111.537	1.121.797
artnet Auctions	2.512.263	2.992.177	2.299.610	2.483.361	1.213.389	1.836.974	1.141.870	1.524.743
artnet Data	3.785.348	3.868.426	3.464.934	3.210.606	1.885.051	1.921.519	1.771.121	1.595.011
artnet Auctions	2.512.263	2.992.177	2.299.610	2.483.361	1.213.389	1.836.974	1.141.870	1.524.743
artnet Data	3.785.348	3.868.426	3.464.934	3.210.606	1.885.051	1.921.519	1.771.121	1.595.011
artnet Auctions	2.512.263	2.992.177	2.299.610	2.483.361	1.213.389	1.836.974	1.141.870	1.524.743
artnet Data artnet Price Database artnet Data artnet Price Database artnet Data Data	3.785.348 3.785.348 3.785.348 3.785.348 3.785.348	3.868.426 3.868.426 3.868.426 3.868.426 3.868.426	3.464.934 3.464.934 3.464.934 3.464.934 3.464.934	3.210.606 3.210.606 3.210.606 3.210.606 3.210.606	1.885.051 1.885.051 1.885.051 1.885.051 1.885.051	1.921.519 1.921.519 1.921.519 1.921.519 1.921.519	1.771.121 1.771.121 1.771.121 1.771.121 1.771.121	1.595.011 1.595.011 1.595.011 1.595.011 1.595.011
artnet Price Database	3.785.348	3.868.426	3.464.934	3.210.606	1.885.051	1.921.519	1.771.121	1.595.011
artnet Media	4.214.983	2.450.279	3.858.202	2.033.613	2.423.017	1.601.330	2.260.949	1.329.132
artnet Price Database	3.785.348	3.868.426	3.464.934	3.210.606	1.885.051	1.921.519	1.771.121	1.595.011
artnet Media	4.214.983	2.450.279	3.858.202	2.033.613	2.423.017	1.601.330	2.260.949	1.329.132
artnet Price Database	3.785.348	3.868.426	3.464.934	3.210.606	1.885.051	1.921.519	1.771.121	1.595.011
artnet Media	4.214.983	2.450.279	3.858.202	2.033.613	2.423.017	1.601.330	2.260.949	1.329.132
artnet Advertising	3.740.214	2.404.943	3.423.620	1.995.986	2.132.187	1.555.994	1.990.319	1.291.505
artnet Media	4.214.983	2.450.279	3.858.202	2.033.613	2.423.017	1.601.330	2.260.949	1.329.132
artnet Advertising	3.740.214	2.404.943	3.423.620	1.995.986	2.132.187	1.555.994	1.990.319	1.291.505
artnet Media	4.214.983	2.450.279	3.858.202	2.033.613	2.423.017	1.601.330	2.260.949	1.329.132
artnet Advertising	3.740.214	2.404.943	3.423.620	1.995.986	2.132.187	1.555.994	1.990.319	1.291.505
arnet News Subscriptions	474.769	45.336	434.582	37.627	290.830	45.336	270.630	37.627
artnet Advertising	3.740.214	2.404.943	3.423.620	1.995.986	2.132.187	1.555.994	1.990.319	1.291.505
arnet News Subscriptions	474.769	45.336	434.582	37.627	290.830	45.336	270.630	37.627
artnet Advertising	3.740.214	2.404.943	3.423.620	1.995.986	2.132.187	1.555.994	1.990.319	1.291.505
arnet News Subscriptions	474.769	45.336	434.582	37.627	290.830	45.336	270.630	37.627
Total Revenue	12.915.550	11.944.105	11.822.302	9.913.027	6.703.759	6.711.272	6.285.477	5.570.683
arnet News Subscriptions	474.769	45.336	434.582	37.627	290.830	45.336	270.630	37.627
Total Revenue	12.915.550	11.944.105	11.822.302	9.913.027	6.703.759	6.711.272	6.285.477	5.570.683
arnet News Subscriptions	474.769	45.336	434.582	37.627	290.830	45.336	270.630	37.627
Total Revenue	12.915.550	11.944.105	11.822.302	9.913.027	6.703.759	6.711.272	6.285.477	5.570.683
Cost of Sales	5.632.588	4.978.417	5.155.813	4.131.844	2.848.662	2.688.868	2.674.385	2.231.915
Total Revenue	12.915.550	11.944.105	11.822.302	9.913.027	6.703.759	6.711.272	6.285.477	5.570.683
Cost of Sales	5.632.588	4.978.417	5.155.813	4.131.844	2.848.662	2.688.868	2.674.385	2.231.915
Total Revenue	12.915.550	11.944.105	11.822.302	9.913.027	6.703.759	6.711.272	6.285.477	5.570.683
Cost of Sales	5.632.588	4.978.417	5.155.813	4.131.844	2.848.662	2.688.868	2.674.385	2.231.915
Gross Profit	7.282.962	6.965.688	6.666.489	5.781.183	3.855.097	4.022.404	3.611.092	3.338.768
Cost of Sales	5.632.588	4.978.417	5.155.813	4.131.844	2.848.662	2.688.868	2.674.385	2.231.915
Gross Profit	7.282.962	6.965.688	6.666.489	5.781.183	3.855.097	4.022.404	3.611.092	3.338.768
Cost of Sales	5.632.588	4.978.417	5.155.813	4.131.844	2.848.662	2.688.868	2.674.385	2.231.915
Gross Profit Gross Profit Operating Expenses Gross Profit	7.282.962 7.282.962 7.282.962	6.965.688 6.965.688 6.965.688	6.666.489 6.666.489 6.666.489	5.781.183 5.781.183 5.781.183	3.855.097 3.855.097 3.855.097	4.022.404 4.022.404 4.022.404	3.611.092 3.611.092 3.611.092	3.338.768 3.338.768 3.338.768
Operating Expenses Operating Expenses Selling and Marketing Operating Expenses Selling and Marketing Operating Expenses	4.226.481 4.226.481	3.259.263 3.259.263	3.868.727 3.868.727	2.705.030 2.705.030	2.284.916 2.284.916	1.592.799 1.592.799	2.138.130 2.138.130	1.322.154 1.322.154
Selling and Marketing	4.226.481	3.259.263	3.868.727	2.705.030	2.284.916	1.592.799	2.138.130	1.322.154
General Administrative	2.668.256	2.186.073	2.442.399	1.814.334	1.280.862	1.033.819	1.205.758	858.163
Selling and Marketing	4.226.481	3.259.263	3.868.727	2.705.030	2.284.916	1.592.799	2.138.130	1.322.154
General Administrative	2.668.256	2.186.073	2.442.399	1.814.334	1.280.862	1.033.819	1.205.758	858.163
Selling and Marketing	4.226.481	3.259.263	3.868.727	2.705.030	2.284.916	1.592.799	2.138.130	1.322.154
General Administrative	2.668.256	2.186.073	2.442.399	1.814.334	1.280.862	1.033.819	1.205.758	858.163
Transfer Pricing - Expenses	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
General Administrative	2.668.256	2.186.073	2.442.399	1.814.334	1.280.862	1.033.819	1.205.758	858.163
Transfer Pricing - Expenses	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
General Administrative	2.668.256	2.186.073	2.442.399	1.814.334	1.280.862	1.033.819	1.205.758	858.163
Transfer Pricing - Expenses	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Product Development	1.574.923	1.807.359	1.441.612	1.500.020	689.834	911.834	652.696	756.889
Transfer Pricing - Expenses	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Product Development	1.574.923	1.807.359	1.441.612	1.500.020	689.834	911.834	652.696	756.889
Transfer Pricing - Expenses	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Product Development	1.574.923	1.807.359	1.441.612	1.500.020	689.834	911.834	652.696	756.889
Non-Cash Compensation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Product Development	1.574.923	1.807.359	1.441.612	1.500.020	689.834	911.834	652.696	756.889
Non-Cash Compensation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Product Development	1.574.923	1.807.359	1.441.612	1.500.020	689.834	911.834	652.696	756.889
Non-Cash Compensation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Total Operating Expenses	8.469.660	7.252.695	7.752.738	6.019.384	4.255.612	3.538.452	3.996.584	2.937.206
Non-Cash Compensation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Total Operating Expenses	8.469.660	7.252.695	7.752.738	6.019.384	4.255.612	3.538.452	3.996.584	2.937.206
Non-Cash Compensation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Total Operating Expenses	8.469.660	7.252.695	7.752.738	6.019.384	4.255.612	3.538.452	3.996.584	2.937.206
Total Operating Expenses	8.469.660	7.252.695	7.752.738	6.019.384	4.255.612	3.538.452	3.996.584	2.937.206
Operating Income	(1.186.698)	(287.007)	(1.086.249)	(238.201)	(400.515)	483.952	(385.492)	401.562
Total Operating Expenses	8.469.660	7.252.695	7.752.738	6.019.384	4.255.612	3.538.452	3.996.584	2.937.206
Operating Income	(1.186.698)	(287.007)	(1.086.249)	(238.201)	(400.515)	483.952	(385.492)	401.562
Operating Income	(1.186.698)	(287.007)	(1.086.249)	(238.201)	(400.515)	483.952	(385.492)	401.562
Operating Income	(1.186.698)	(287.007)	(1.086.249)	(238.201)	(400.515)	483.952	(385.492)	401.562
Interest Expenses	18.676	35.764	17.095	29.682	8.267	16.844	7.817	13.982
Operating Income	(1.186.698)	(287.007)	(1.086.249)	(238.201)	(400.515)	483.952	(385.492)	401.562
Interest Expenses	18.676	35.764	17.095	29.682	8.267	16.844	7.817	13.982
Interest Expenses	18.676	35.764	17.095	29.682	8.267	16.844	7.817	13.982
Interest Income	159	- 0	146	- 0	159	- 0	146	- 0
Interest Expenses	18.676	35.764	17.095	29.682	8.267	16.844	7.817	13.982
Interest Income	159	- 0	146	- 0	159	- 0	146	- 0
Interest Expenses	18.676	35.764	17.095	29.682	8.267	16.844	7.817	13.982
Interest Income	159	- 0	146	- 0	159	- 0	146	- 0
Extraordinary Depreciation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Interest Income	159	- 0	146	- 0	159	- 0	146	- 0
Extraordinary Depreciation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Interest Income	159	- 0	146	- 0	159	- 0	146	- 0
Extraordinary Depreciation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Other Income/(Expenses)	(62.673)	11.427	(57.368)	9.484	(27.271)	8.611	(25.813)	7.147
Extraordinary Depreciation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Other Income/(Expenses)	(62.673)	11.427	(57.368)	9.484	(27.271)	8.611	(25.813)	7.147
Extraordinary Depreciation	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Other Income/(Expenses)	(62.673)	11.427	(57.368)	9.484	(27.271)	8.611	(25.813)	7.147
Transfer Pricing - Income	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Other Income/(Expenses)	(62.673)	11.427	(57.368)	9.484	(27.271)	8.611	(25.813)	7.147
Transfer Pricing - Income	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Other Income/(Expenses)	(62.673)	11.427	(57.368)	9.484	(27.271)	8.611	(25.813)	7.147
Transfer Pricing - Income	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Transfer Pricing - Income	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Transfer Pricing - Income	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
Earnings Before Taxes	(1.267.888)	(311.344)	(1.160.566)	(258.399)	(435.894)	475.719	(418.976)	394.727
Earnings Before Taxes	(1.267.888)	(311.344)	(1.160.566)	(258.399)	(435.894)	475.719	(418.976)	394.727
Earnings Before Taxes	(1.267.888)	(311.344)	(1.160.566)	(258.399)	(435.894)	475.719	(418.976)	394.727
Earnings Before Taxes	(1.267.888)	(311.344)	(1.160.566)	(258.399)	(435.894)	475.719	(418.976)	394.727
Income Taxes	(1.267.888)	(311.344)	(1.160.566)	(258.399)	(435.894)	(10.795)	(418.976)	394.727
Earnings Before Taxes	(11.751)	(10.846)	(10.756)	(9.002)	(10.726)	475.719	(9.842)	(8.960)
Income Taxes Income Taxes Deferred Tax Benefit/	(11.751) (11.751)	(10.846) (10.846)	(10.756) (10.756)	(9.002) (9.002)	(10.726) (10.726)	(10.795) (10.795)	(9.842) (9.842)	(8.960) (8.960)
Income Taxes Deferred Tax Benefit/ (Expense) Deferred Tax Benefit/ Income Taxes (Expense) Deferred Tax Benefit/ (Expense)	(11.751) (11.751)	(10.846) (10.846)	(10.756) (10.756)	(9.002) (9.002)	(10.726) (10.726)	(10.795) (10.795)	(9.842) (9.842)	(8.960) (8.960)
Deferred Tax Benefit/ (Expense) Net Profit/(Loss) (Expense) Net Profit/(Loss)	(1.279.639) (1.279.639)	(322.190) (322.190)	(1.171.322) (1.171.322)	(267.401) (267.401)	(446.620) (446.620)	464.924 464.924	(428.818) (428.818)	385.767 385.767
Net Profit/(Loss)	(1.279.639)	(322.190)	(1.171.322)	(267.401)	(446.620)	464.924	(428.818)	385.767
Net Profit/(Loss)	(1.279.639)	(322.190)	(1.171.322)	(267.401)	(446.620)	464.924	(428.818)	385.767
Net Profit/(Loss)	(1.279.639)	(322.190)	(1.171.322)	(267.401)	(446.620)	464.924	(428.818)	385.767
Other comprehensive Other comprehensive income Other comprehensive income
Other comprehensive income OCI Recycled: income Other comprehensive OCI Recycled: income OCI Recycled: Exchange differences on
OCI Recycled: Exchange differences on translating foreign operations Exchange differences on translating foreign operations OCI Recycled: Exchange differences on translating foreign operations	67.455 67.455 67.455	39.772 39.772 39.772	396.262 396.262 396.262	182.403 182.403 182.403	50.957 50.957 50.957	(4.605) (4.605) (4.605)	277.991 277.991 277.991	(37.033) (37.033) (37.033)
Exchange differences on translating foreign operations translating foreign operations Total comprehensive income Total comprehensive income	67.455 67.455 (1.212.184) (1.212.184)	39.772 39.772 (282.418) (282.418)	396.262 396.262 (775.060) (775.060)	182.403 182.403 (84.998) (84.998)	50.957 50.957 (395.663) (395.663)	(4.605) (4.605) 460.319 460.319	277.991 277.991 (150.827) (150.827)	(37.033) (37.033) 348.734 348.734
Total comprehensive income Total comprehensive income Earnings per share Total comprehensive income	(1.212.184) (1.212.184) (1.212.184)	(282.418) (282.418) (282.418)	(775.060) (775.060) (775.060)	(84.998) (84.998) (84.998)	(395.663) (395.663) (395.663)	460.319 460.319 460.319	(150.827) (150.827) (150.827)	348.734 348.734 348.734
Earnings per share Earnings per share Net profit per basic share	(0,23)	(0,06)	(0,21)	(0,05)	(0,08)	0,08	(0,08)	0,07
Earnings per share Net profit per basic share Earnings per share Net profit per basic share Net profit per diluted share	(0,23) (0,23) (0,23)	(0,06) (0,06) (0,06)	(0,21) (0,21) (0,21)	(0,05) (0,05) (0,05)	(0,08) (0,08) (0,08)	0,08 0,08 0,08	(0,08) (0,08) (0,08)	0,07 0,07 0,07
Net profit per basic share Net profit per diluted share Net profit per basic share Net profit per diluted share diluted	(0,23) (0,23) (0,23) (0,23)	(0,06) (0,06) (0,06) (0,06)	(0,21) (0,21) (0,21) (0,21)	(0,05) (0,05) (0,05) (0,05)	(0,08) (0,08) (0,08) (0,08)	0,08 0,08 0,08 0,08	(0,08) (0,08) (0,08) (0,08)	0,07 0,07 0,07 0,07

artnet AG Consolidated Statement of Cash Flows For the Period from January 1 to June 30, 2022

6/30/2022 6/30/2022 6/30/2022	6/30/2021 6/30/2021 6/30/2021	6/30/2022 6/30/2022 6/30/2022	6/30/2021 6/30/2021 6/30/2021
USD USD USD	USD USD USD	EURO EURO EURO	EURO EURO EURO
(1.279.639) (1.279.639) (1.279.639)	(322.190) (322.190) (322.190)	(1.171.322) (1.171.322) (1.171.322)	(267.401) (267.401) (267.401)
Adjustments to Reconcile Net Profit to Net Cash provided
776.079	780.747	741.544	658.794
87.444	99.014	83.553	658.794 658.794 83.548
- 0	- 0	(0)	83.548 83.548 (0)
- 0	- 0	- 0	(0) (0) - 0
- 0	- 0	- 0	- 0 - 0 - 0
			- 0 - 0
(48.559)	(647.608)	(46.398)	(546.451)
163	58.973	155	(546.451) (546.451) 49.761
287.718	15.965	274.914	49.761 49.761 13.471
692.395	146.404	661.583	13.471 13.471 123.535
- 0	- 0	- 0	123.535 123.535 - 0
678.004	(305.324)	647.833	- 0 - 0 (257.632)
881.339	516.665	842.119	(257.632) (257.632) 435.962
18.676 18.676 18.676	35.764 35.764 35.764	17.095 17.095 17.095	435.962 435.962 29.682 29.682 29.682
3.373.260	700.601	3.222.399	590.671 590.671 590.671
	776.079 776.079 87.444 87.444 - 0 - 0 - 0 - 0 - 0 - 0 (48.559) (48.559) 163 163 287.718 287.718 692.395 692.395 - 0 - 0 678.004 678.004 881.339 881.339 3.373.260 3.373.260	780.747 780.747 99.014 99.014 - 0 - 0 - 0 - 0 - 0 - 0 (647.608) (647.608) 58.973 58.973 15.965 15.965 146.404 146.404 - 0 - 0 (305.324) (305.324) 516.665 516.665 700.601 700.601	741.544 741.544 83.553 83.553 (0) (0) - 0 - 0 - 0 - 0 (46.398) (46.398) 155 155 274.914 274.914 661.583 661.583 - 0 - 0 647.833 647.833 842.119 842.119 3.222.399 3.222.399

Artnet AG – Half Year Financial Statements 2022

Cash Flow Provided by/(used in) Operating Activities	2.093.621	378.411	2.051.077	323.270
Cash Flow from Investing Activities
Purchase of Property and Equipment	(34.422)	(3.789)	(32.890)	(3.197)
Purchase and Development of Intangible Assets	(706.226)	(376.068)	(674.799)	(317.326)
Cash Flow Provided by/(used in) Investing Activities	(740.648)	(379.857)	(707.690)	(320.523)
Cash Flow from Financing Activities
Repayment of financial lease	(981.891)	(577.620)	(938.197)	(487.396)
Loan	- 0	- 0	0	0
Interest for leases	(18.676)	(35.764)	(17.095)	(29.682)
Cash Flow Provided by/(used in) Financing Activities	(1.000.567)	(613.384)	(955.292)	(517.077)
Effects of Exchange Rate Changes on Cash	67.455	39.772	64.688	75.800
Changes in Cash and Cash Equivalents	419.860	(575.058)	452.783	(438.530)
Cash and Cash Equivalents - Start of Period	674.591	1.796.307	592.965	1.469.020
Cash and Cash Equivalents - End of Period	1.094.451	1.221.248	1.045.748	1.030.490
Suplemental Disclosures of Cash Flow
Income Tax Receipts/(Payments)		- 0
Interest Payments	(18.676)	(35.764)	(17.095)	(29.682)
Interest Receipts	159	- 0	146	- 0

artnet AG Consolidated Statement of Changes in Shareholder Equity (USD) For the Fiscal Year from January 1 to June 30 2022 Common stock

	issued Common stock Shares issued	Amount Amount	stock Treasury stock	capital Additional paid-in capital	deficit Accumulated deficit	translation Forreign currency translation	Total Total
BALANCE - December 31, 2020	5.706.067	6.032.262	(269.241)	52.547.76 9	(52.952.049)	537.65	5.896.392
Net Income/(Loss)					(322.190)	39.772	(282.418)
BALANCE - June 30, 2021	5.706.067	6.032.262	(269.241)	52.547.76 9	(53.274.239)	577.42	5.613.974
BALANCE - December 31, 2021	5.706.067	6.032.262	(269.241)	52.547.769	(53.893.052)	591.167	5.008.905
Net Income/(Loss)					(1.279.639)	67.455	(1.212.184)
BALANCE - June 30, 2022	5.706.067	6.032.262	(269.241)	52.547.769	(55.172.691)	658.622	3.796.721

artnet AG Consolidated Statement of Changes in Shareholder Equity (EUR) For the Fiscal Year from January 1 to June 30 2022 Common stock Common stock

	Common stock Shares issued	Amount	Treasury stock	Additional paid-in capital	Accumulated deficit	Forreign currency translation	Total
BALANCE - December 31, 2020 BALANCE - December 31, 2020	5.706.067 5.706.067	5.706.067 5.706.067	(264.425) (264.425)	51.118.25 51.118.25 1	(51.812.939) (51.812.939)	75.115 75.115	4.822.069 4.822.069
Net Income/(Loss) Net Income/(Loss)					(267.401) (267.401)	182.403 182.403	(84.998) (84.998)
BALANCE - June 30, 2021 BALANCE - June 30, 2021	5.706.067 5.706.067	5.706.067 5.706.067	(264.425) (264.425)	51.118.25 1 51.118.25	(52.080.340) (52.080.340)	257.518 257.518	4.737.071 4.737.071
BALANCE - December 31, 2021	5.706.067	5.706.067	(264.425)	51.118.25 1	(52.608.840)	451.775	4.402.828
BALANCE - December 31, 2021 Net Income/(Loss) Net Income/(Loss)	5.706.067	5.706.067	(264.425)	51.118.25	(52.608.840) (1.171.322) (1.171.322)	451.775 396.262 396.262	4.402.828 (775.060) (775.060)
BALANCE - June 30, 2022 BALANCE - June 30, 2022	5.706.067 5.706.067	5.706.067 5.706.067	(264.425) (264.425)	51.118.251 51.118.251	(53.780.162) (53.780.162)	848.037 848.037	3.627.768 3.627.768

Notes to the Consolidated Financial Statements

Corporate Information

Artnet AG (hereinafter referred to as "Artnet AG" or the "Company") is a publicly traded corporation headquartered in Berlin, Germany. The address of its registered office is Oranienstraße 164, 10696 Berlin, Germany. The company is registered under the number HRB 980060 B in the commercial register of the district court of Charlottenburg. Artnet AG holds 100% of the shares in Artnet Worldwide Corporation ("Artnet Corp."), which is located in New York, NY, USA. Artnet Corp. holds 100% of the shares in Artnet U.K. Ltd. Artnet AG and Artnet Corp., together with the latter's wholly owned subsidiaries, are referred to as the "Artnet Group" or the "Group". The Group's business is to provide art collectors, galleries, publishers, auction houses, and art enthusiasts with a site where individuals can research artists and art prices and find artworks that are currently available for sale in the Gallery Network or on Artnet Auctions, an online transaction platform. The interim consolidated financial statements were authorized for issuance by the CEO on August 15, 2022.

Basis of Reporting

These unaudited interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB) for interim financial information effective within the E.U. In particular, they correspond to the "Interim Financial Reporting" guidelines of IAS 34. They also comply with the German Accounting Standard (DRS) 16 on half-year reporting, as well as with §§ 115, 117 of the Securities Trading Act. These financial statements do not include all of the information and notes required by IFRS for complete financial statements for year-end reporting purposes. The accounting and valuation methods applied to this interim report were generally the same as to the most recent annual financial statements. A detailed description of the accounting policies is published in the notes to the 2021 annual consolidated financial statements. The Management of the Company is confident that the interim consolidated financial statements include all adjustments of a normal and recurring nature considered necessary for a fair presentation of results for the interim period. Results for the period ending on June 30, 2022, are not necessarily indicative of future results. The interim financial statements as of June 30, 2022, and the interim management report have not been audited in accordance with § 317 of the German Commercial Code or reviewed by an auditor. The consolidated financial statements have been prepared on a historical cost basis.

The balance sheet date is June 30, 2022.

Reporting Period

The consolidated financial statements were prepared for the reporting period from January 1, 2022, to June 30, 2022. The fiscal year for all Group companies coincides with the calendar year. Foreign Currency Translations and Transactions Amounts mentioned in the interim consolidated financial statements and notes to the interim consolidated financial statements are stated in euros (EUR) unless otherwise noted. The reporting currency is the euro. The currency of the primary economic environment in which the Group operates is U.S. dollars, which is the functional currency of the operating subsidiary Artnet Corp. Transactions in currencies other than U.S. dollars are recorded at the exchange rates prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Gains and losses from foreign currency transactions are recognized as other income or expenses. On consolidation, the assets and liabilities of the Group's operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average price for the period. The accumulated gains and losses resulting from translation are recorded as a separate component of the Group equity. In 2021, the longterm intercompany loan remained at 1.5 million EUR. A settlement for this loan is neither planned nor likely to occur in the foreseeable future. The intercompany loan qualifies as a net investment, according to IAS 21.15. Accordingly, exchange differences on the euro-validating loan will be recognized in other comprehensive income. They will thus be accumulated in a separate component of equity until full or partial disposal of Artnet AG's ownership interest in Artnet Corp. In the first six months of 2022, currency exchange effects in the amount of 125k EUR were recognized as net investment in other comprehensive income and decreased the equity. Currency exchange rates significant to the Group are the conversion of U.S. dollars to euros and of U.S. dollars to British pounds. The following exchange rates have been used for the currency translation in the years presented:

	USD to EUR		USD to EUR
	6/30/2022	12/31/2021	6/30/2021
Current Rate Period End	0.956	0.879	0.844
Average Rate for the Period	0.915	0.846	0.830
	USD to GBP		USD to GBP
	6/30/2022	12/31/2021	6/30/2021
Current Rate Period End	0.822	0.739	0.724
Average Rate for the Period	0.771	0.727	0.721

Basis of Consolidation and Consolidated Companies

The consolidated financial statements include the legal parent company, Artnet AG, its wholly-owned subsidiary, Artnet Worldwide Corporation, as well as the subsidiaries of the Company. According to IFRS 10, control is achieved where a company is exposed to fluctuating yields as a result of its engagement with the entity or owns rights and has the power to govern the financial and operating policies of an entity to obtain benefits from its activities. On February 23, 1999, Artnet AG entered into a transaction with Artnet Corp., which was treated as a recapitalization of Artnet Corp., with Artnet Corp. as the acquirer of Artnet AG.

As a result, the initial consolidation was implemented so that Artnet AG consolidated as a legal acquirer for the subsidiary company, Artnet Corp., because this was the economic acquirer. An office was opened in London in November 2007, with the formation of Artnet U.K. Ltd., the U.K. subsidiary of Artnet Worldwide Corporation. Artnet AG and its subsidiaries employ a total of 137 people as of June 30, 2022.

Treasury Shares

As of June 30, 2022, Artnet AG held 78,081 of its own shares, unchanged from the previous year, representing 1.4% of common stock.

Income Taxes

Current income tax is recognized in the interim period based on the estimate of weighted average annual income tax for the entire fiscal year. Due to its tax loss carryforwards, Artnet Corp. only has to pay the alternative minimum corporation tax.

The Group reviews the carrying amount of its deferred tax asset once per year and will review the deferred tax asset on the balance sheet date, December 31, 2022, based on the most recent corporate planning for the fiscal years 2022 through 2024. Currently, no material effects of the Corona pandemic on the recoverability of deferred taxes are expected.

Segment Reporting

The Group reports on the operating segments in the same way it reports operating segment information to the Management and Supervisory Boards. The Group's reporting is based on the following three segments:

• Marketplace segment, which includes Artnet Galleries and Artnet Auctions
• Data segment, which includes the Price Database as well as the products based thereupon, including Market Alerts and Analytics Reports
• Media segment, which includes Artnet News, Artnet News Pro, Advertising, and Partnerships.

Management decisions for segments are based on the Contribution Margin II (revenue minus direct and indirect variable costs), which is therefore presented below as the segment result. Indirectly attributable expenses are allocated to the segments, using the ratio of headcounts and revenue for each segment.

The segment reporting is presented, similar to internal communication, in U.S. dollars. Allocation of assets or liabilities for each segment is not provided to Management. Therefore, segment-related assets and liabilities are not presented in this report.

Period January 1, 2022 to June 30, 2022	Revenue k USD	Contribution Margin II k USD
Marketplace	4,915	975
Data	3,785	2,055
Media	4,215	824
Total	12,915	3,854
Period January 1, 2021 to June 30, 2021	Revenue k USD	Contribution Margin II k USD
Marketplace	5,625	1,672
Data	3,868	2,145
Media	2,450	107
Total	11,944	3,924

The reconciliation of the Contribution Margin II to the operating income of the Group is given in the following table:

Reconciliation of Segments Contribution Margin II to the Operating Income	6/30/2022 k USD	6/30/2021 k USD
Contribution Margin II	3,854	3,924
Fixed Costs of Sales Expenses Including Depreciation 238k USD (2021: 228k USD)	2,301	1,860
Fixed Costs of General and Administrative Expenses Including Depreciation 548k USD (2021: 553k USD)	2,397	2,058
Fixed Costs of Product Development Expenses	342	294
Operating Income	-1,187	-287

Earnings Per Share

Basic earnings per share are calculated by dividing net income by the weighted average number of outstanding common shares during the year. Diluted earnings per share are calculated in the same manner as basic earnings per share, with the exception that the average number of outstanding shares increases by adding the potential number of shares from stock option conversions. The calculation of earnings per share is based on the following data:

	6/30/2022 k USD	6/30/2021 k USD
Numerator (Earnings): Net income for the first six months	(322,190)	(267,401)
Denominator (Number of Shares): The weighted average number of ordinary shares used to calculate basic earnings per share (issued and fully paid ordinary shares)	5,627,986	5,627,986
Effect of potentially dilutive shares from stock options	0	0
The weighted average number of ordinary shares used to calculate dilutive earnings per share	(0.06)	(0.05)

In the first six months of the 2022 fiscal year, Diluted and Undiluted earnings per share amounted to (0.23) USD or (0.21) EUR, as compared to the previous year (2021: -0.06 USD or -0.05 EUR).

Employees

In the first six months of the 2022 fiscal year, there were 137 full-time employees in the Group compared to 119 in the same period of 2021. Additionally, the Group had two part-time employees, the same as last year. In Sales and other departments, the Group had five freelancers, as compared to four in the same period the previous year.

Significant transactions with related parties

In 2018, a consulting agreement with Galerie Neuendorf AG was extended until August 31, 2019. In August 2019, this agreement was extended for two years until August 31, 2021. Thereafter, the agreement was extended until December 31, 2022. Mr. Hans Neuendorf is the CEO of Galerie Neuendorf, and based on this agreement, Mr. Neuendorf shall provide ongoing strategic advice concerning further development and expansion of the Group.

Accounting Estimates and Judgments

The preparation of the consolidated financial statements in accordance with IFRS necessitates estimates and assumptions that influence assets and liabilities, income, and expenses, as well as information in the notes to the financial statements. Actual results and developments may differ from those estimates and assumptions. Estimates made by Management that have a significant effect on the consolidated financial statements include the recognition of deferred tax assets and development costs, the impairment of capitalized development costs, the valuation of provisions, the useful lives of non-current assets, and the assessment of bad debt provisions on accounts receivable. Furthermore, estimates of the borrowing rate for lease accounting have been necessary for the financial year 2022. Notification concerning transactions of persons with managerial responsibilities according to Section 19 of MMVO In accordance with Section 19 of MMVO, the Company has not been notified about transactions made by persons with managerial responsibilities.

Voting Rights Notifications According to § 21, WpHG

Shareholders are required to report when the level of their shareholdings exceeds or falls below certain thresholds. The thresholds are 3%, 5%, 10%, 15%, 20%, 25%, 30%, 50%, and 75%. The voting rights notifications received by the Company during the year under review are available on Artnet's website at artnet.com/ investorrelations/voting-rights-notifications.

Announcement Date	Person or entity subject to the notification obligation: (Complete chain of subsidiaries starting with the top ranking controlling person or the top ranking controlling company):	+ = exceeding – = reduction	Threshold %	Date on which threshold was crossed or reached	Voting rights in % (Absolut)	Comments
12/30/21	Rüdiger K. Weng	–	25	12/23/21	25,59%
01/14/22	Andrea S. Schaeffer	+	5	12/23/20	5,34%
10/12/16	Andreas Langenscheidt	+	3	10/06/16	3,36%
12/30/19	Dr. Kyra Heiss	–	5	12/17/19	5,24%
12/23/20	Andrew E. Wolf	–	3	12/23/20	4,66%
10/06/15	William B. Fine	+	3	10/01/15	3,24%

Useful Information for Shareholders

Artnet AG Supervisory Board

Dr. Pascal Decker, Chairman Prof. Dr. Michaela Diener, Deputy Chairwoman Hans Neuendorf

Management Board Jacob Pabst, CEO

Artnet Worldwide Corporation Jacob Pabst,

CEO Artnet UK Ltd. Jacob Pabst, CEO

Addresses

Artnet AG Artnet Worldwide Corporation Artnet UK Ltd. Oranienstraße 164 233 Broadway, 26th Floor 4 Cromwell Place 10969 Berlin New York, NY, 10279 South Kensington info@artnet.de Info@artnet.com London SW7 2JE T: +49 (0)30 209 178-0 T: +1-212-497-9700 T: +44 (0)2077290824 F: +49 (0)30 209 178-29 F: +1-212-497-9707 F: +44 (0)2070339077

German Securities Code Number

The common stock of Artnet AG is traded on the Prime Standard of the Frankfurt Stock Exchange under the symbol "ART." You can find notices of relevant company developments at artnet.com/ investor-relations.

Stock Market Information

WKN A1K037 ISIN DE000A1K0375 LEI 391200SHGPEDTRIC0X31

Investor and Shareholder Relations

The Artnet Group places great value on a positive and fruitful exchange with its stakeholders. We look forward to staying in touch with you.

Please find all relevant information for investors, the financial statements, and updates at artnet.com/ investor-relations.

If you have further queries, please don't hesitate to get in touch: Sophie Neuendorf, Vice President, Investor Relations sneuendorf@artnet.com

Newsletter

The Artnet Group sends regular newsletter updates to its shareholders. Please sign up by emailing ir@artnet.com with your name and email address.

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Artnet AG – Half Year Financial Statements 2022