Digitouch — Interim / Quarterly Report 2016

Oct 6, 2016

Last update: October 2016

• 1. Group profile
• 1. Financial & economic data H1 2016
• 1. Business progress up to date
• 1. Stock trend
• 1. Appendix

16 Marzo 2015

went public on AIM Market

IPO: 4,288 milion stocks at price of 2,3 Euro per share and 1.000 convertible bonds (total value about 13 milion Euros)

Floating capital: 31,6%

Market cap: 33,1 million Euros

Launch of DAPcenter May 2015 Acquisition of BackOffice Srl, owner of MutuiPerlaCasa.com and TassoAlert mobile app. Jul 2015 Acquisition of CRM Srl, company that controls E3. Sep 2015 Automotive DigiTouch Solutions Srl set up and launch Acquistion Optimized Group srl Jul 2016

www.autoandplus.com

7

Data show the weight in percentage of the first three verticals in 2015 DigiTouch Group's Clients portfolio.

WHO, in which ROLE	TYPE	BACK GROUND
SIMONE RANUCCI BRANDIMARTE	BoD	Entrepreneur & Co-founder of Multiple Ventures
DigiTouch Group Chairman		Goswiff CEO, President & Founder Glamoo Co-Founder of Buongiorno - CEO Buongiorno Mitsui Asia JV Started Career in Accenture, Strategic Services
PAOLO MARDEGAN CEO DigiTouch Group	BoD	Premium Services Director in NeoNetwork Director for New Product Development in Buongiorno S.p.A. Well known writer and Blogger IAB Italia Board Member 2014/2017
MARKO MARAS CTO DigiTouch Group and Partner of Audiens	Key People	Founder & CEO of OneBip (sold to Neomobile) Founder of Simple Ventures IT Manager at In3 Internet Ventures
MICHELA RIZZO Investor Relator and CFO DigiTouch Group	Key People	Controller in Vodafone Auditor In PwC
VERONICA MACCANI Investor Relator and Head of Marketing & Communication DigiTouch Group	Key People	Advertising & Brand Manager in Vodafone Event Specialist in Wireless
DANIELA ROBBA Head of DigiTouch Agency	Key People	Head of Milan Office, TheBlogTV Communities COO in DMC; Manager in DMC-Fullsix; Marketing Manager in Bibop Research; before in MTV and RAI.
ANNARITA OLIVIERI Managing Director of Performedia Srl	Key People	Key Account Coordinator in DigiTouch until October 2015 Mobile service and content Manager in Lycos, in Buongiorno and in DigitAlchemy; Community Manager in I-side.
FABIO RACCHINI, FEDERICO CECCARELLI, MAURIZIO MAZZANTI Management team of E3 Srl	Key People	CEO E3 Sales Director Creative Director
NIKLAS LINDAHL CEO of Optimized Group Head of International Development of DigiTouch Group	Key People	Country Manager in Just Search Key Account Manager Netbooster Sweden

		H1-2016	H1-2015
Key metrics	€ mln	% of Revenues	€	% of Revenues	Growth H1-16 on H1-15
Revenues	13.541.497		10.454.877		29,5%
EBITDA	1.847.187	13,6	1.509.615	14,4 %	22,4%
EBIT	525.173	3,9	1.026.357	9,8 %	(48,8)%
EBT	1.736.436	12,8	1.122.630	10,7 %	54,7%
NET RESULTS	1.035.491	7,6	816.864	7,8 %	26,8%
of the Group	1.037.679	7,7	595.123	5,7 %	74,4%

Net Results of the Group closed at 1,04 million Euro on 30th June 2016, with an increase of 74,4% in comparison with the same pro-forma data in H1-2015 and that was 0,60 million Euro), because of the performance of the core management and of the capital gain coming from the transfer of the 51% participation in MediaMob.

OVERALL

DigiTouch Group's Balance sheet consolidated & reclassified

	H1-2016	FY-2015
Key metrics	€	€	Growth H1-16 on FY-15
FIXED CAPITAL	14.095.473	13.987.687	0,8%
NET INVESTED CAPITAL	13.486.624	14.048.291	4,0%
NET ASSETS	13.691.274	12.655.783	8,2%
NET FINANCIAL POSITION	(204.650)	1.392.507	(114,7)%

The PFN closed positive on 30th June 2016 for Euro 205mila With an improvement of about Euro 1,6 million in comparison with the PFN at 31st December 2015.

Description of the main PFN components:

About 6 million Euro have been used to strenghten DigiTouch Group positioning on the Italian market through acquisitions and offer extension.

When	Event	Used proceeds
May-15	Acquisition of 80,96% of BackOffice Srl, owner of MutuiPerlaCasa.com	about
Jul-15	Acquisition of E3 Srl
Sep-15	Payment of Performedia (acquired in August 2014)	6
Apr-16	Acquisition of 10% of Open Gate Italia Srl
Jul-16	Acquisition of 100% of Optimized Group Srl	million Euro

To date the proceeds used for the international development process are few.

The international development process strenghtened in July 2016 thanks to the assignment of Niklas Lindahl as Head of International Development of DigiTouch Group. Lindahl is AD of Optimized Group (the last agency bought by DigiTouch), has a solid expertise in the performance marketing and worked also abroad in Just Search and in Netbooster Sweden.

Here after the revenues connected to the international development of the Group, since January to mid-Spetember 2016.

DigiTouch Group's International revenues managed in 2016

1,3 million Euro have been used to cover the human resources' costs. A team of engineers has developed the technological implementation of Audiens, the mobile data profiling platform.

The technological implementations impacted the following macrothemes:

• Integration with MNO, Adserver and DMP
• Dashboard improvement
• Product innovation

REVENUES FROM JANUARY TO MID-SEPTEMBER

About50thousand Euro

Main partnership signed in 2016

Agreement with DSP: Adform Agreement with DSP: Doubleclick Agreement with DSP: AppNexus Agreement with DSP: Widespace Agreement with DMP: Adobee Technical partnership with Gruppo Editoriale L'Espresso Technical partnership with Hearst

Technical partnership with Condè-Nast

On 9 June 2016 DigiTouch Board of Directors has authorized an aucap for Audiens dedicated to investors (Business Angels, Venture Capital). The objectives are: allow Audiens to continue its growth path, give an additional push to technological development, complete the organizational development and approach international Telcos.

• EBITDA improvement of the Group. Activities focused on the centralization of the Corporate functions, optimization of internal processes and controlling aimed at supervisioning the projects and internalize the productive chain.
• Clients portfolio Rationalization. Maintenance, development and strenghtening of those relationships with better related marginality in the medium and long period, through specifics KPIs, connected to Client's potential measurement and its impact on the marginality of the Group.
• Investments on Data Centric Technologies. Human and financials resources aimet at creating a competitive advantage in Big Data ambit, by creating assets within this sector, which is destinated to control the most of the digital advertising in the next years.
• Offer Innovation. Projecting and development of the offer, so that to enlarge DigiTouch selling proposition and strenghten the distinctive technological assets along all the value chain: creativity, media planning, measurement of the results.
• Organizational Reinforcement. Completion of the integration processes of the 5 partecipated companies that have been acquired in the last 24 months, both for rationalizing the commercial offer and for the internal processes. Development of a Group culture.
• Governance Improvement. Introduction of procedures and rules so that to improve the control process by the Board, in order to be transparent, efficient and qualitative.
• International Business Scouting. Analisys, study and planning of different development options on international markets so that to chase the growth on foreign countries during the 2017.

In countertrend in comparison with AIM Italy trend, our stock has been object of many exchanges in the last three weeks. Our stock value is decreased, but there is no link with our business trend that, as the previuos charts show, is tough and growing.

SUMMARY OF EXCHANGED IN THE LAST 3 WEEKS:

Week 12-16/09 117.500 pieces

Week 5-9/09 157.000 pieces

Week 29/08-02/09 165.000 pieces

UNIT COMPARISON

In H1-2016 DigiTouch Group has applied a Capex Optimization policy.

• In H1-2016 capitalizations focused on DashBoard project for about 200 thousands Euro.
• Audiens project completed its development phase (capitalizations decreased to 100 thousands Euro) and since the first months of the year have started to commercialize the service.