windeln.de SE — Interim / Quarterly Report 2014

May 5, 2015

windeln.de+GmbH,+München

Consolidated,statement,of,financial,position

Assets
in#kEUR	Notes	31,December,2014	31,December,2013	31,December,2012	1,January,2012
NON'CURRENT,ASSETS
Intangible#assets	8.1	4.043	3.547	749	241
Fixed#assets	8.2	480	430	112	29
Other#financial#assets	8.3	0	0	0	0
Other#nonDfinancial#assets	8.3	D	717	D	D
Total,non'current,assets		4.523	4.694	861	270
CURRENT,ASSETS
Inventories	8.4	10.754	7.260	3.242	1.539
Prepayments	8.5	285	17	6	D
Trade#receivables	8.6	1.725	1.171	1.005	190
Income#tax#receivables	8.16	D	6	10	3
Other#financial#assets	8.7	3.939	1.445	888	47
Other#nonDfinancial#assets	8.7	1.988	1.560	255	206
Cash#and#cash#equivalents	8.8	33.830	267	411	7.517
Total,current,assets		52.521	11.726	5.817	9.502
TOTAL,ASSETS		57.044	16.420	6.678	9.772
Equity,and,liabilities
in#kEUR	Notes	31,December,2014	31,December,2013	31,December,2012	1,January,2012
EQUITY
Issued#capital	8.9	163	124	101	100
Share#premium	8.9	68.911	27.587	13.559	13.431
Accumulated#loss		D34.488	D24.661	D12.386	D5.082
Cumulated#other#comprehensive#income		35	D9	D	D
Total,equity		34.621	3.041	1.274	8.449
NON'CURRENT,LIABILITIES
Defined#benefit#obligations#and#other#accrued#employee#benefits	8.10	6.406	2.993	1.271	314
Financial#liabilities	8.12	85	51	2	D
Deferred#tax#liabilities		322	273	D	D
Total,non'current,liabilities		6.813	3.317	1.273	314
CURRENT,LIABILITIES
Other#Provisions
	8.11	1.246	875	125	43
Financial#liabilities	8.12	1.532	1.920	1	D

Deferred#revenue 8.14 1.985 794 317 41 Income#tax#payables 8.16 5 5 D D Other#financial#liabilities 8.15 1.629 786 499 75 Other#nonDfinancial#liabilities 8.15 383 463 62 13 Total,current,liabilities 15.610 10.062 4.131 1.009 TOTAL,EQUITY,AND,LIABILITIES 57.044 16.420 6.678 9.772

Consolidated,statement,of,profit,and,loss,and,other,comprehensive,income,

in#kEUR	Notes	2014	2013	2012
Revenues	9.1	101.324	49.438	21.542
Cost#of#sales	9.2	D77.869	D39.106	D17.476
Gross,profit		23.455	10.332	4.066
Selling#and#distribution#expenses	9.3	D26.668	D17.138	D8.557
Administrative#expenses	9.4	D8.678	D5.402	D2.873
Other#operating#income	9.5	267	25	48
Other#operating#expenses	9.5	D99	D40	D
Earnings,before,interest,and,taxes,(EBIT)		'11.723	'12.223	'7.316
Financial#income	9.6	2.223	5	24
Financial#expenses	9.6	D85	D28	D1
Financial,result		2.138	'23	23
Earnings,before,taxes,(EBT)		'9.585	'12.246	'7.293
Income#taxes	8.16	D242	D28	D11
Profit,or,loss,for,the,period		'9.827	'12.274	'7.304
Other(comprehensive(income(that(will(not(be(reclassified(to(profit(or(loss(in(subsequent(periods:
Actuarial#gains/losses#from#remeasurement#of#defined#benefit#pension#plans	8.10	14	D1	D
Deferred#taxes#relating#to#items#that#will#not#be#reclassified	8.16	D3	D	D
Other(comprehensive(income(that(may(be(reclassified(to(profit(or(loss(in(subsequent(periods:
Exchange#differences#on#translation#of#foreign#operations	4.4	33	D8	D
Other,comprehensive,income,,net,of,tax		44	'9	'
TOTAL,COMPREHENSIVE,INCOME,,net,of,tax		'9.783	'12.283	'7.304

Consolidated,statement,of,cash,flows,

in#kEUR	2014	2013	2012
Profit#or#loss#for#the#period	D9.827	D12.274	D7.304
Amortisation#(+)/writeDup#(D)#of#intangible#assets	594	341	71
Depreciation#(+)/writeDup#(D)#of#fixed#assets	191	106	62
Increase#(+)/decrease#(D)#in#defined#benefit#obligations#and#other#accrued#employee#benefits	3.413	1.666	957
Increase#(+)/decrease#(D)#in#other#current#provisions	371	750	82
Other#nonDcash#expenses#(+)/income#(D)#items	26	D1	D6
Increase#(D)/decrease#(+)#in#inventories	D3.494	D3.555	D1.704
Increase#(D)/decrease#(+)#in#prepayments	D268	D11	D7
Increase#(D)/decrease#(+)#in#trade#receivables	D554	D25	D815
Increase#(D)/decrease#(+)#in#other#assets	D2.240	D1.070	D873
Increase#(+)/decrease#(D)#in#trade#payables	3.456	1.734	2.290
Increase#(+)/decrease#(D)#in#deferred#revenue	1.191	477	276
Increase#(+)/decrease#(D)#in#other#liabilities	763	619	473
Interest#expenses#(D)/#income#(+)	73	23	D23
Income#tax#expenses#(+)#/income#(D)	242	28	11
Income#tax#paid#(D)#/received#(+)	D1	D1	D
Net,cash,flows,from,/,used,in,operating,activities	'6.064	'11.193	'6.510
Purchase#(D)#of#intangible#assets	D1.090	D841	D579
Purchase#(D)#of#fixed#assets	D149	D207	D141
Payments#(D)#for#investment#in#financial#assets	D	D	D17
Interest#received#(+)	5	5	24
Net,cash,flows,from,/,used,in,investing,activities	'1.234	'1.043	'713
Proceeds#(+)#from#issue#of#shares	41.632	10.277	152
Transaction#cost#(D)#on#issue#of#shares	D272	D73	D34
Repayment#(D)#of#financeDlease#liabilities	D21	D8	D
Proceeds#(+)#from#financial#liabilities	1.520	1.920	D
Repayment#(D)#of#financial#liabilities	D1.920	D	D
Interest#paid#(D)	D78	D28	D1
Net,cash,flows,from,/,used,in,financing,activities	40.861	12.088	117
Cash#and#cash#equivalents#at#the#beginning#of#the#period	267	411	7.517
Net#increase/decrease#in#cash#and#cash#equivalents	33.563	D148	D7.106
Change#in#cash#and#cash#equivalents#due#to#changes#in#group#structure
	D	4	D

Consolidated,statement,of,changes,in,equity

	Issued,	Share,		Actuarial#gains/losses#from#	Exchange#differences#on#	Other,	Total
in,kEUR	capital	premium	Accumulated,loss	remeasurement#of#defined#	translation#of#foreign#	comprehensive,	Equity
				benefit#pension#plans	operations	income
As,at,1,January,2012	100	13.431	'5.082	'	'	'	8.449
Total#comprehensive#income#for#the#period	D	D	D7.304	D	D	D	D7.304
Issue#of#share#capital	1	150	D	D	D	D	151
Transaction#costs	D	D22	D	D	D	D	D22
Transfers	D	D	D	D	D	D	D
Dividends	D	D	D	D	D	D	D
As,at,31,January,2012	101	13.559	'12.386	'	'	'	1.274
As,at,1,January,2013	101	13.559	'12.386	'	'	'	1.274
Total#comprehensive#income#for#the#period	D	D	D12.274	D1	D8	D9	D12.283
Issue#of#share#capital	23	12.644	D	D	D	D	12.666
Transaction#costs	D	D50	D	D	D	D	D50
ShareDbased#payments	D	1.434	D	D	D	D	1.434
Transfers	D	D	D	D	D	D	D
Dividends	D	D	D	D	D	D	D
As,at,31,January,2013	124	27.587	'24.661	'1	'8	'9	3.041
As,at,1,January,2014	124	27.587	'24.661	'1	'8	'9	3.041
Total#comprehensive#income#for#the#period	D	D	D9.827	11	33	44	D9.783
Issue#of#share#capital	39	41.593	D	D	D	D	41.632
Transaction#costs	D	D269	D	D	D	D	D269
Transfers	D	D	D	D	D	D	D
Dividends	D	D	D	D	D	D	D
As,at,31,January,2014	163	68.911	'34.488	10	25	35	34.621

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 Notes&to&the&consolidated&financial&statements&

1. General)information)

windeln.de GmbH+ (hereinafter+ referred+ to+ as+ the+ 'Company')+ is+ a+ limited+ liability+ company+ established+in+accordance+with+German+law+and+was+ founded+under+ the+name+UrbanEBrand+GmbH+ with+effect+from+21+January+2010+and+entered+into+the+German+trade+register+(Handelsregister)+on+1+ February+2010.+The+Company+is+registered+at+Munich+District+Court,+Germany,+under+the+number+HRB+ 183852.+The+Company+is+headquartered+in+Grünwald,+Aurikelstrasse+1,+Germany.

On+the+basis+of+a+shareholders'+resolution+from+17+October+2013+and+a+trade+register+entry+from+21+ October+2013,+the+Company+was+renamed+from+UrbanEBrand+GmbH+to+windeln.de+GmbH. windeln.de+ GmbH+ and+ its+ subsidiaries+ are+ active+ in+ the+ eEcommerce of+ baby+ and+toddler items+ in+ Germany+and+other+European+countries.+Business+is+conducted+over+ the+Internet+as+well+as+via+ two+ retail+shops in+Germany+and+Switzerland.

2. General)principles)

windeln.de+GmbH+ is+ the+ parent+ company+ of+ the+ windeln.de+Group+ (hereinafter+ also+ referred+ to+ as+ 'windeln.de'+or+the+'Group').+As+of 31+December+2013,+the+windeln.de+Group+stayed+below the+size+ criteria+pursuant+to+§+293+para.+1+of+the+German+Commercial+Code+(HGB).+Therefore+the+Company+is+ also,+as+of 31+December+2014,+released+from+its+duty+defined+by+national+law+to+prepare consolidated+ financial+ statements+ and+ a+ group+ management+ report.+ On+ 31+ December+ 2014,+ the+ Company+ voluntarily+ prepared+ consolidated+ financial+ statements+ for+ the+ first+ time+ according+ to+ the+ International+Financial+Reporting+Standards+(IFRS)+as+adopted in+the+EU.+

The+ comparative figures+ for+ the+ consolidated+ financial+ statements+ as+ of 31+ December+ 2014+ were+ derived+ on+ the+ basis+ of+ an+ IFRS+ opening+ balance+ as+ of 1+ January+ 2012.+ The+ consolidated+ financial+ statements+ take+ into+ account+ all+ issued+ IFRS+ as+ of the+ balance+ sheet+ date+ and+ adopted in+ the+ European+Union.+By+adhering+to+the+Standards+and+Interpretations,+a+true+and+fair+representation+of+ the+net+asset,+financial+income position+of+windeln.de+GmbH is+obtained.

Management+has+prepared+and+approved+ the+consolidated+ financial+ statements+on 13+March+2015+ and+has+forwarded+the+financial+statements+to+the+shareholders+meeting according+to+IAS+10.

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 3. Explanation)of)transition)to)IFRS)

windeln.de GmbH+ prepares+ its+ separate+ financial+ statements+ in+ accordance+ with+ the+ national+ accounting+ principles+ as+ set+ out+ in+ the+ German+ Commercial+ Code+ (HGB).+ In+ previous+ reporting+ periods,+ the+Group+has+not+prepared+consolidated+ financial+statements+in+accordance with+national+ accounting+principles.

windeln.de+ GmbH+ has+ voluntarily+ prepared as+ of+ 31+ December+ 2014 consolidated+ financial+ statements in+accordance+with+ the+International+Financial+Reporting+Standards+ (IFRS) as+adopted+in+ the+EU+for+the+first+time.+The consolidated+financial+statements+are+in+accordance+with+all+IFRS+which+ must+be+applied as+of 31+December+2014.+The+use+of+individual+IFRS+standards is+described+in+more+ detail+under+the+bullet+point+"Summary+of+significant+balance+sheet+and+evaluation+methods".

IFRS+1+"FirstEtime+Adoption+of+International+Financial+Reporting+Standards"+allows+firstEtime+adopters+ certain+ exceptions from+ the+ principles+ according+ to+ which+ the+ IFRS+ which+ are+ in+ force+ as+ of 31+ December+2014+must+be+applied retrospectively.+The+Group+has+not+applied any+of+these+exceptions.

Since+the+Company+has+previously+not+prepared+any+consolidated+ financial+statements+according+to+ national+accounting+principles+and+therefore+no+comparable+information+is+available,+a+reconciliation+ is+not+necessary+pursuant+to+IFRS+1.

The+ material+ differences+ between+ the+ Group+ companies'+ individual+ financial+ statements+ required+ under+commercial+law+and+the+IFRS+consolidated+financial+statements+are+outlined+below:

• E In+the+local financial+statements+of+the+German+Company,+the+option+to+capitalise+internally+ developed intangible+assets+was+exercised+in+2013 for+ the+ first+ time.+This capitalisation+was+ already+included in+ the+IFRS+consolidated+ financial+statements+in+2012,+since+all+ recognition+ criteria+pursuant+to+IAS+38 were+met.
• E In+ the+ IFRS+ consolidated+ financial+ statements,+ contracts+ were+ classified+ as+ financial+ leases,+ whereas+ the+ contracts+ in+ the+ local consolidated+ financial+ statements+ were+ classified+ as+ operating+leases.
• E In+ the+ local financial+ statements+a+ provision+ for+ returns+was+recorded,+whereas+in+ the+IFRS+ consolidated+ financial+ statements+ a liability was+ presented as+ a+ gross+ figure,+ i.e.+ a+ claim+ against+ customers+ for+returns of+goods+was+ recognised,+along+with+an+ obligation+ to+ refund+ the+consideration to customers.
• E According+ to+IFRS,+ the+Swiss+companies'+pension+commitments are+an+obligation+ that+must+ be+ recognised+ since+ they+ are+ classified+ as+ defined+ benefit+ plans,+ whereas+ there+ is+ no+ obligation+ to+ recognise+ those in+ the+ local+ financial+ statements+ since+ these+ schemes+ are+ classified+locally+as+defined+contribution+plans.

4. Summary)of)significant)accounting)and)valuation)methods)

4.1 Basis)of)preparation)of)financial)statements)

The+ consolidated+ financial+ statements+ are+ prepared+ on+ the+ basis+ of+ the+ recognition+ of+ assets+ and+ liabilities+at+amortised+costs,+ reduced+ by+ the+measurement+of+ specific+ financial+assets+and+ financial+ liabilities+at+fair+value+through+profit+or+loss.+The+assets+and+liabilities are+recognised+according+to+the+ reporting+and+evaluation+principles+of+ the+ relevant+IAS+or+IFRS,+which+are+described+in+detail+in+ the+ following+section+of+this+chapter.

The+ Company+ presents+ its consolidated+ statement+ of+ profit+ and+ loss and+ other+ comprehensive+ income+in+a+single+statement+using+the+cost+of+sales+method.

The+ consolidated+ statement+ of+ financial+ position+ is+ classified+ based+ on+ the+ maturity+ of+ assets+ and+ liabilities.+ Assets+ which+ can+ be+ sold within+ twelve+ months+ or+ used+ or+ settled+ in+ normal+ business+ transactions+ are+ classified+ as+ current.+ Liabilities+ are+ classified+ as+ current+ provided+ they+ are+ settled+ within+twelve+months+following+the+balance+sheet+date.+Assets+and+liabilities+with+a+maturity+of+more+ than+one+year+are+classified+as+nonEcurrent.+Deferred+tax+assets+and+liabilities+are+classified+according+ to+IAS+1.56+as+nonEcurrent+assets+or+liabilities.

The+ consolidated+ financial+ statements+ have+ been+ prepared+ in+ Euros+ (EUR),+ which+ represents+ the+ functional+and+reporting+currency+of+windeln.de+GmbH.+Unless+otherwise+indicated,+all+figures+in+the+ notes+ to+ the+ consolidated+ financial+ statements+ are+ rounded+ up+ or+ down+to+ the+ nearest+ thousand+ (kEUR).+ In+ the+ tables+ in+ the+ notes+ to+ the+ consolidated+ financial+ statements,+ therefore,+ rounding+ differences+may+occur.

The+financial+year+comprises+one+calendar+year+for+all+Group+companies+except+of+stub financial+years+ in+the+year+of+founding.

Preparing consolidated+financial+statements+in+accordance+with+IFRS+requires+estimates+to+be+made.+ In+addition,+applying+ the+ CompanyEwide+accounting+and+evaluation+methods+ requires+estimates on+ the+part+of+management.+Areas+involving+a+broader+scope+of+assessment+or+increased+complexity+or+ areas+ in+ which+ assumptions+ and+ estimates+ are+ of+ crucial+ importance+ to+ the+ consolidated+ financial+ statements+ are+ mentioned+ under+ the+ section+ 'Significant+ accounting+ judgements,+ estimates+ and+ assumptions'.

4.2 New)IASB)accounting)principles)

Principles+ of+ accounting+ according+ to+ IFRS+ are,+ in+ accordance+ with+ EU+ Regulation+ No.+ 1606/2002,+ those+IASB+accounting+standards+adopted+by+the+Commission+of+the+European+Community+within+the+ framework+of+the+endorsement+process+for+the+European+Union.+The+IFRS+recently+published+by+the+ IASB+and+the+amendments+to+the+IFRS+are+to+become+mandatory+following+a+respective+resolution+by+ the+EU+Commission+as+part+of+the+endorsement+process.

The+following+Standards+and+Interpretations+which+were+issued by+the+IASB+have either not+yet+been+ adopted by+the+EU+or+are+not+yet+effective+and+therefore+have+not+been+applied+by+the+Group.

Standard	Effective+date	Predicted+ effect+ on+ consolidated+ financial+
		statements
Amendment+ to+ IAS+ 19,+	1+January+2015	No+significant+effects
Defined+ Benefits+ Plans:+
Employee+Contributions
Annual+ Improvements+ to+	1+July+2014	No+effects
IFRSs+2010–2012+Cycle
Annual+ Improvements+ to+	1+July+2014	No+effects
IFRSs+2011–2013+Cycle
Amendment+ to+ IFRS+ 11,+	1+January+2016	No+effects
Accounting+ for+ Acquisitions+
of+ Interests+ in+ Joint+
Operations
Amendment+ to+ IAS+ 16+ and+	1+January+2016	No+significant+effects
IAS+ 38,+ Clarification+ of+
Acceptable+ Methods+ of+
Depreciation+ and+
Amortisation
Amendment+ to+ IAS+ 16+ and+	1+January+2016	No+effects
IAS+ 41,+ Agriculture:+ Bearer+
Plants
IFRS+ 15+ Revenue+ from+	1+January+2017	No+ significant+ effects for+ the+ net+ asset+
Contracts+with+Customers+		financial+ and+ income+ position of+ the+
		Group.+ The+ new+ standard+ stipulates+
		comprehensive+additional+disclosures.
Amendment+ to+ IAS+ 27,+	1+January+2016	No+effects
Equity+ Method+ in+ Separate+
Financial+Statements+
Amendment+ to+ IFRS+ 10+ and+	1+January+2016	No+effects
IAS+ 28,+ Sale+ or+ Contribution+
of+ Assets+ between+ an+
Investor+and+its+Associate+or+
Joint+Venture
Annual+ Improvements+ to+	1+January+2016	No+effects
IFRSs+2012–2014+Cycle
IFRS+ 14+ Regulatory+ Deferral+	1+January+2016	No+effects
Accounts
IFRS 9+Financial+Instruments	1+January+2018	No+significant+effects
Amendment+to+IFRS+10,+IFRS+	1+January+2016	No+effects
12+ and+ IAS+ 28:+ Investment+
Entities:+ Applying+ the+
Consolidation+Exception
Amendment+ to+ IAS+ 1:+	1+January+2016	No+significant+effects
Disclosure+Initiative

No+ standards+ or+ Interpretations,+ as+ issued by+ the+ IASB,+ were+ applied voluntarily+ prior+ to+ the+ mandatory+first+effective+dates,+nor+does the+Company+intend+in the future+to+apply+standards+prior+ to+their+mandatory+effective+dates.

4.3 Consolidation)principles)

The+ financial+statements+of+the+consolidated+companies+ (the+parent+company+and+two+subsidiaries)+ have+ been+ prepared+ in+ accordance+ with+ the+ accounting+ and+ evaluation+ methods+ of+ the+ parent+ company.+No+joint+ventures+or+associated+companies+have+been+consolidated.+The+ultimate parent of+ the+ Group,+ windeln.de+ GmbH,+ has+ control+ over+ all+ the+ subsidiaries+ included+ in+ the+ consolidated+ financial+statements+by+holding+majorities+of+the+voting+rights+with+respect+to+those+companies.

All+intraEGroup+balances,+transactions,+and+unrealised+gains+and+losses+from+intraEGroup+transactions+ are+eliminated+in+ full+within+ the+consolidation process.+GroupEinternal+receivables+and+liabilities+are+ offset. Offsetting+ differences+ are+ recognised+ in+ profit+ or+ loss,+ provided+ they+ occurred+ during+ the+ reporting+ period.+ IntraEGroup+ income and+ expenses are+ eliminated+ in+ the+ income+ consolidation.+ Intercompany+profits+and+losses+are+eliminated.+In+accordance+with+IFRS+10+in+conjunction+with+IFRS+ 3,+ the+ capital+ consolidation+ is+ carried out+ by+ offsetting+ the+ investment+ book+ value+ against+ the+ revalued+equity+share+of+the+subsidiary+company+at+the+date+of+acquisition+(revaluation+method).

Business+ combinations+ are+ accounted+ for+ by+ applying+ the+ acquisition method.+ The+ consideration+ transferred+ (costs+ of+ acquisition+ of+ a+ company)+ corresponds+ to+ the+ sum+ of+ the+ assets+ acquired,+ as+ measured+at+fair+value,+equity+instruments+issued,+and+liabilities+taken+over+at+the+time+of+acquisition,+ as+ well+ as+ those+ assets+ and+ liabilities+ measured+ at+ fair+ value+ which+ are+ the+ result+ of+ a+ contingent+ consideration.+Assets,+liabilities+and+contingent+liabilities+identified+within+a+business+combination+are+ measured+ at+ fair+ value+ at+ the+ time+ of+ acquisition.+ Costs+ arising+ within+ a+ business+ combination+ are+ recorded as+ expenses.+ Goodwill+ is+ measured+ at+ cost+ at+ the+ acquisition+ date as+ excess of+ the+ consideration+transferred+ over+the+ identified+ assets+ and+ liabilities acquired.+ If+ this+ consideration+ is+ below+ the+ fair+ value+ of+ the+ acquired+ net+ assets,+ the+ difference (badwill) will+ be+recorded+ directly+ through+profit+or+loss.

Contingent+ purchase+ price+ components+ are+ included+ in+ the+ calculation+ of+ the+ purchase+ price+ with+ their+fair+value+at+the+time+of+acquisition.+Contingent+purchase+price+components+can+be+both+equity+ instruments+ and+ also+ financial+ liabilities+ or+ assets.+ Subsequent+ amendments+ to+ the+ fair+ value+ of+ a+ contingent+consideration+classified+as+an+asset+or+liability+are+measured pursuant+to IAS+39+or+IAS+37,+ and+a+profit+or+loss+resulting+from+this+is+recorded either+as+profit+or+loss,+or+as+other+comprehensive+ income.+A+contingent consideration+which+is+classified+as+equity+will+not+be+remeasured+subsequently and+its+settlement is+reported+in+equity.

A+profit+or+loss+from+the+disposal of+subsidiaries+is+recorded+through profit+or loss+in+the+statement+of+ profit+and+loss+and+other+comprehensive+income.

4.4 Currency)translation)

The+Group+companies+prepare their+ financial+statements+in+ the+currency+of their+primary+economic+ environment (functional+ currency).+ Foreign+ currency+ transactions+ are+ translated+ initially+ at+ the+ applicable+ spot+ rate+ into+ the+ functional currency+ at the+ transaction+ date.+ Monetary+ assets+ and+ liabilities+in+foreign+currency+are+translated+into+the+functional+currency+using+the+closing+rate at+the+ balance+sheet+date.+The+respective translation+differences+are+generally+recognised+in+profit+or+loss.+

Furthermore,+nonEmonetary+items+measured+at+ fair+value+are+ translated+using+ the+spot+ rate+on+ the+ day+of+measurement+at+fair+value.

For+the+purposes+of+preparing+consolidated+financial+statements,+assets+and+liabilities+of+subsidiaries+ not+using+the+Euro+as+a+functional+currency+are+translated+into+Euro at+the+closing+rate+at the+balance+ sheet+date.+Items+in+the+statement+of+profit+and+loss+and+other+comprehensive+income+are+translated+ into+Euro+at+the+average+rate+for+the+respective+financial+year.+The+equity+of+subsidiaries+is+translated+ at+the+corresponding+historical+rate.+The+currency+differences+resulting+from+currency+translations+are+ recognised+ in+ other+ comprehensive+ income as+ exchange+ differences+ on+ translation+ of+ foreign+ operations.

The+ exchange+ rates+ for+ significant+ currencies+ taken+ as+ the+ basis+ for+ the+ currency+ translation+ have+ developed+as+follows+(equivalent+value+for+EUR+1):

Country	Currency		Average rate				Closing rate
	1 Euro =	2014	2013	2012	31.12.2014	31.12.2013	31.12.2012	01.01.2012
Switzerland	CHF	1.2146	1.2311	1.2053	1.2024	1.2276	1.2072	1.2156
Denmark	DKK	7.4548	7.4579	7.4437	7.4453	7.4593	7.4610	7.4342
Great Britain	GBP	0.8061	0.8492	0.8109	0.7789	0.8337	0.8161	0.8353
Norway	NOK	8.3544	7.8066	7.4751	9.0420	8.3630	7.3483	7.7540
Sweden	SEK	9.0985	8.6508	8.7041	9.3930	8.8591	8.5820	8.9120
United States	USD	1.3285	1.3282	1.2848	1.2141	1.3791	1.3194	1.2939

4.5 Intangible)assets)

Software+licences

Acquired+software+licences+are+capitalized+on+the+basis+of+those+costs+which arise+during+acquisition+ as+well+as+for+preparing+the software+for+its+intended+use.+These+costs+are+amortised on+a+straightEline+ basis+over+an+estimated+useful+life of+three+years.+The+net+book+values,+useful lives+and+amortisation methods+are+verified at+each+balance+sheet+date+and+prospectively+adjusted+where+appropriate.+If+the+ recoverable+amount+of+an+asset+is+less+ than+its+carrying+amount,+ the+carrying+amount+is+reduced+ to+ the+recoverable+amount+in+accordance+with+IAS+36.+An+appreciation+in+value+up to+amortised+cost+is+ recorded if an+indication+that a+previously+recorded+impairment loss+may+no+longer+exist.

SelfEdeveloped software

Costs+for+internally+generated+intangible+assets+are+recognised+in+profit+or+loss,+with+the+exception+of+ development+ costs+ which+ can+ be+ capitalised.+ Development+ costs+ of+ a+ single+ project+ are+ only+ capitalised+as+an+intangible+asset+if+the+following+criteria+pursuant+to+IAS 38+have+been+met:

• Newly+developed+software+is+an+identifiable+asset.
• Completing+the+intangible+asset+is technically+feasible.
• The+management+intends+to+complete+and+use+the+software+product.

• It+is+probable that+the+software+product+will+generate+future+economic+benefits.

• Adequate+technical,+financial,+and+other+resources+are+available+so+that+the+development+can+ be+completed+and+the+software+product+can+be+used.

• The expenditure+during+development+can+be+reliably+measured.

Those+ costs+ directly+ attributable+ to+ the+ software+ product+ include+ personnel+ costs+ for+ members+ of+ staff+involved+in+the+development+process,+an+appropriate+part+of+the+corresponding+overhead costs+ and+costs+for+external+resources+used.

Subsequent+ acquisition or+ manufacturing+ costs+ are+ only+ capitalised as+ part+ of+ the+ acquisition or+ manufacturing+costs+of+the+asset+or+as+a+separate+asset+if+it+is+likely+that+this+will+result+in+economic+ benefits for+the+Group+in+the+future+and+the+costs+of+the+asset+can+be+measured reliably.

Development+costs+already+recorded+as+expenditure+are+not+capitalised+in+a+subsequent+period.

Capitalised+development+costs+for+software+are+amortised on+a+straightEline+basis+over+the+period+of+ expected+future+benefit (generally+three+years).+Amortisation+of+the+asset+begins+when+development+ is+ complete+ and+ the+ asset+ is+ available+ for+ use.+ The+ net+ book+ values,+ economic+ useful lives+ and+ amortisation+ methods+ are+ verified at+ each+ balance+ sheet+ date+ and+ prospectively+ adjusted+ where+ appropriate.+ If+ the+ recoverable+ amount+ of+ an+ asset+ is+ less+ than+ its+ carrying+ amount,+ the+ carrying+ amount+is+reduced+to+the+recoverable+amount+in+accordance+with+IAS+36.+An+appreciation+in+value+up+ to+amortised+cost+is+recorded if there+is+an+indication+that+a+previously+recorded+impairment+loss+may+ no+longer+exist.

During+the+period+of+development,+the+asset+is+tested+for+impairment+at+the+balance+sheet+date.

Research+costs+are+expensed+as+incurred.

Domains

Acquired domains are+ capitalised+ as+ intangible+ assets+ with+ indefinite useful lives+ and+ are+ not+ amortised.

The+ assessment+ of+ indefinite+ life+ is+ reviewed+ annually+ to+ determine+ whether+ the+ indefinite+ life+ continues+ to+ be+ supportable.+If+ not,+ the+ change in+ useful+life+ from+indefinite+to+ finite+is+made+on+a+ prospective+basis.

An+impairment+test+is+carried+out+at+least+once+a+year+for+each+individual+domain+or+at+the+level+of+the+ cashEgenerating+ unit.+ If+ the+ recoverable+ amount+ of+ an+ asset+ is+ less+ than+ its+ carrying+ amount,+ the+ carrying+amount+is+reduced+to+the+recoverable+amount+in+accordance+with+IAS+36.+An+appreciation+in+ value+up+to+amortised+cost+is+recorded+if there+is+an+indication+that+a+previously+recorded+impairment+ loss+may+no+longer+exist.

Intangible+assets+acquired+within a+business+combination

The+acquisition+costs+of+intangible+assets+acquired+within a+business+combination+correspond+to+the+ fair+value+at the+acquisition+date.

The+Group+ has+capitalised+an acquired+ customer+list.+This+will+ be+amortised on+a+ straightEline+ basis+ over+the+expected useful life+of+five+years.

Furthermore,+ the+ Group+ has+ acquired+ the+ domains+ toys.ch+ and+ kindertraum.ch+ as+ a+ result+ of+ the+ acquisition+of windeln.ch+AG+(formerly:+Kindertraum.ch+AG).+These+domains+have+been+recognised+at+

their+ fair+ value+ at+ the acquisition date as intangible+ assets+ with+ an indefinite+ useful life.+ For+ their+ subsequent+measurement,+see "Domains"+section+above.

Goodwill

Goodwill+ is+ not+ amortised but+ subject to+ an+ annual+ impairment+ test+ in+ accordance+ with+ IAS 36+ (impairment+only+approach).

Goodwill+is+allocated to+cashEgenerating+units+(CGU)+for+the+purpose+of+the+impairment+test.+Goodwill+ is allocated+ to those+ CGUs+ or+ groups+ of+ CGUs+ that+ can+ be+ expected+ to+ benefit from+ the+ goodwill acquired+in+a+business+combination.+Each+CGU or+group+of+CGUs to+which+the+goodwill+is+allocated+ represents+ the+ lowest+ level+ within+ the+ Company+ at+ which+ goodwill+ is+ monitored for+ internal+ management+purposes.

Goodwill+is+monitored at+the+level+of+the+business+segment.

An+assessment+of+whether+an+impairment+of+goodwill+has+occurred+is+undertaken+once+a+year+on+31+ December.+ In+ case there+ is+ any+ triggering+ event+ during+ the+ financial+ year+ that+ indicates+ that+ the+ acquired+goodwill+may+be+impaired,+the+goodwill+is+then+tested+for+impairment.+The+carrying+amount of+ the+ goodwill+ is+ compared+ to the+recoverable amount,+ i.e.+ the+ higher+ of+ fair+ value+ less+ costs+ of+ disposal+and+the+value in+use.+An impairment+loss is+recognised immediately+in+profit+or+loss and+will+ not be reversed in+subsequent+periods.

4.6 Fixed)assets)

All+ fixed+ assets+ are+stated+ at cost,+ net+ of+ accumulated+ depreciation+ and+ accumulated+ impairment+ losses,+if+any. The+costs+of+the+fixed+assets+contain+all+costs directly+attributable+to+the+acquisition+and+ costs+ directly+ attributable+ to+ bringing+ the+ asset+ to+ a+ condition+ necessary+ for+ it to+ be+ capable+ of+ operating.+Discounts,+incentives+and+rebates are+deducted+from+the+purchase+price.

All+ subsequent+ costs+ which+ cannot+ be+ capitalised+ as+ well+ as+ maintenance+ costs+ are+ recognised+ in+ profit+or+loss in+the+period+in+which+they+occur.

Borrowing costs have+ not+ been+ capitalised,+ since+ no+ borrowing costs+ that+ can+ be+ capitalised+ have+ been+incurred+pursuant+to+IAS 23.

Advance+ payments+ for+ undelivered+ fixed+ assets+ or+ incomplete assets+ are+ recognised+ under+ fixed+ assets.

They+are+depreciated+on+a+straightEline+basis+over+the+estimated+economic+useful life.+The+following+ useful lives are+expected:

• Operating+and+office+equipment 3–14+years

The+ assessment+ of+net+ book+ values,+economic+useful lives+and+depreciation methods+are+tested at+ each+balance+sheet+date+and+prospectively+adjusted+where+appropriate.+If+the+recoverable+amount+of+ an+asset+is+less+than+its+carrying+amount,+the+carrying+amount+is+reduced+to+the+recoverable+amount+ in+accordance+with+IAS+36.+The+reduction+is+recorded+as+an+impairment+loss+through+profit+or+loss.+An+

appreciation+ in+ value+ up+ to+ amortised+ cost+ is+ carried+ out+ provided+ there+ is+ an+ indication+ that+ a+ previously+recorded+impairment+loss+may+no+longer+exist+or+may+have+decreased.

A+fixed+asset+is+derecognised upon+disposal+or+when+no+future+economic+benefits+are+expected+from+ its+use+or+disposal.

Profit+ or+ loss resulting+ from+ the+ disposal+ of+ assets+ are+ recorded+ as+ the+ difference+ between+ net+ disposal+proceeds and+the+net+book+value+of+the+ fixed+assets+and+are+recognised+in other+operating+ income or+other+operating+expenses in+the+period+in+which+the+asset+is+derecognised.

4.7 Borrowing)costs)

Borrowing+costs+directly+attributable+ to+ the+acquisition,+construction+or+production+of+an+asset+ that+ necessarily+takes+a+substantial+period+of+time+to+get+ready+for+its+intended+use+or+sale+are+capitalised+ as+part+of+the+cost+of+the+asset.

When+calculating the+amount+of+the+borrowing+costs+that+can+be+capitalised+in+a+period,+all+income from+financial investments, that+have+been temporarily+invested+until+used for+the qualifying+asset, is+ deducted+from+the+borrowing+costs+arising. Borrowing+costs+consist+of+interest+and+other+costs+that+ an+entity+incurs+in+connection+with+the+borrowing of+capital. All+other+borrowing+costs+are+expensed+ in+the+period+in+which+they+occur.

So+far,+no+borrowing+costs+have+been capitalised+pursuant+to+IAS 23.

4.8 Financial)assets)including)trade)receivables)

Definition+of+'financial+instrument'

A+financial+instrument+is+any+contract+that+gives+rise+to+a+financial+asset+of+one+entity+and+a+financial+ liability+or+equity+instrument+of+another+entity.+

Initial+recognition+and+measurement

Financial+ assets+ as+ defined+ in+ IAS+ 39+ are+ classified into+ the+ following+ categories,+ with+ their+ classification+depending+on+the+purpose+for+which+the+financial+assets+have+been+acquired:

• Financial+assets+measured+at+fair+value+through+profit+or+loss

Financial+assets+measured+at+ fair+value+through+profit+or+loss+are+ financial+assets+which+are+held+ for+ trading+or+which+have+initially+been+designated by+the+management+as+'financial+assets+measured+at+ fair+value+ through+profit+or+loss'.+A+ financial+asset+is+assigned+ to+ this+category+if,+in+principle,+it+has+ been+ acquired+with+ the+ intention+ to+ sell+ in+ the+ short+ term+ or+ has+ been+ designated+ as+ such+ by+ the+ management.+ Derivatives+ also+ belong+ in+ this+ category+ unless+ they+ are+ designated+ as+ hedging+ instruments+ in+ effective+ hedging+ relationships.+ Financial+ assets+ from+ this+ category+ are+ shown+ as+ current+ assets+ if+ they+ are+ to+ be+ expected+ to+ be+settled within+ twelve+months.+ All+ other+ assets+ are+ classified+as+nonEcurrent.+

In+ the+ financial+ year 2012,+ there+were+ no+ financial+assets+ in+ this+ category+ (financial+assets+ held+ for+ trading)+and+Management+did+not+exercise+its+right+to+assign+financial+assets+to+this+category+on+initial+

recognition+(financial+assets+at+fair+value+through+profit+and+loss).+In+2013+and+2014+the+Group+held+a+ financial+ asset+ of+ this+ category+ in form+ of+ a+ contingent+ consideration arising+ from+ a+ business+ combination (financial+assets+held+for+trading).+Management+did+not+designate financial+assets+to+the category+financial+assets+at+fair+value+through+profit+or+loss+on+initial+recognition.

• Loans+and+receivables

Loans+and+receivables+are+nonEderivative+financial+assets+with+fixed+or+determinable+payments+which+ are+not+listed+in an+active+market.+They+are+classified as+current+assets+provided+that+their+maturities+ do+ not+ exceed+ twelve+ months+ following+ the+ balance+ sheet+ date.+ The+ latter+ are+ presented+ as+ nonE current assets.+ Loans+ and+ receivables+ of+ the+ Group+ are+ classified in+ the+ balance+ sheet+ as 'trade+ receivables'+and+'other+current+ financial+assets'.+Trade+ receivables+include+receivables+due resulting+ from+the sale+of+goods in+the+course+of+normal+business+activities.

- HeldEtoEmaturity+financial+assets+

HeldEtoEmaturity+ investments+ are+ nonEderivative+ financial+ assets+ with+ fixed+ or+ definable+ payments+ and+fixed+retention+periods+which+the+Group+management+is+able to+and+intends+to+hold+to+maturity.+ There+were+no+financial+assets+assigned+to this+category+for+the+financial+years+2014,+2013+and+2012.

• AvailableEforEsale+financial+assets

AvailableEforEsale+ financial+assets+are+nonEderivative+assets+which+were+assigned+ to+ this+category+or not+assigned+ to+any+ of+ the other+ categories.+They+are+assigned+ to+ nonEcurrent+assets+ provided+ the+ management+does+not+intend+to+sell+them within+twelve+months+from+the+balance+sheet+date+and+the+ asset+is+ not+ due+in+ this+ period.+The+availableEforEsale+ financial+assets+are+ recognised+in+ the+ balance+ sheet+under+'other+nonEcurrent+financial+assets'.

The+management+defines the+classification+of+the+financial+assets+at+initial+recognition.

Financial+assets+are+classified+initially at+ fair+value+including+ transaction+costs+with+ the+exception+of+ those+assets+which+are+classified+at+fair+value+through+profit+or+loss.+Financial+assets+which+are+initially+ classified+at+fair+value+through+profit+or+loss+are+measured at+fair+value+and+corresponding+transaction+ costs+are+recognised+in+profit+or+loss.

Purchases+or+sales+of+financial+assets+that+require+delivery+of+assets+within+a+time+frame+established+ by+regulation+ or+ convention+ in+ the+ market+ place+ (regular+ way+ trades)+ are+ recognised+ on+ the+ trade+ date,+i.e.,+the+date+that+the+Group+commits+to+purchase+or+sell+the+asset.

Subsequent+measurement

The+subsequent+measurement of+financial+assets+is+dependent+on+classification.

• Financial+assets+classified+at+fair+value+through+profit+or+loss

In+ the+ statement+ of+ financial+ position+ financial+ assets+ at+ fair+ value+ through+ profit+ or+ loss+ are+ recognised at+ fair+ value+ with+ net+ changes+ in+fair+ value+ presented+ as+ financial expenses or+ financial+ income.

- Loans+and+receivables

After+initial+measurement,+such+ financial assets+are+subsequently+measured+at+amortised+cost+using+ the+ effective+ interest+ rate+ (EIR)+ method,+ less+ impairment,+ if+ any. Amortised+ cost+ is+ calculated+ by+

taking+into+account+any+discount+or+premium+on+acquisition+and+fees+or+costs+that+are an+integral+part+ of+the+EIR.+The+EIR+amortisation+is+included+in+financial income+in+the+statement+of+profit+or+loss.+The+ losses+arising+from+impairment+are+recognised+in+profit+or+loss.

The+amortised+cost of+ trade+receivables,+due+ to+ their+short+ term+maturity, in+general matches their+ fair+values,+taking into+account+any+impairment+losses.

• HeldEtoEmaturity+financial+assets+

After+initial+measurement,+ held+ to+maturity+investments+are+measured+at+amortised+ cost+using+ the+ EIR method,+less+impairment,+if+any.+Amortised+cost+is+calculated+by+taking+into+account+any+discount+ or+premium+on+acquisition+and+fees+or+costs+that+are+an+integral+part+of+the+EIR.+The+EIR+amortisation+ is+included+as+financial income+in+the+statement+of+profit+or+loss.+The+losses+arising+from+impairment+ are+recognised+in+the+statement+of+profit+or+loss+as+financial+expenses.

• AvailableEforEsale+financial+assets+

After+initial+measurement,+availableEforEsale financial+assets+are+subsequently+measured+at+fair value+ with+unrealised+gains+or+losses+recognised+in+OCI+and+credited+in+the+availableEforEsale reserve.

Translation+differences+of+monetary+assets+which+are+registered+in+foreign+currency+and+are+classified+ as+available+for+sale+are+recorded+in profit+or+loss,+whereas+translation+differences+resulting+from+nonE monetary+assets+in+this+category+are+recorded+in other+comprehensive+income/loss+not+affecting+net+ income. If+such+an+asset+is+derecognised, the+cumulative+gain or+loss+is+recognised+in+financial result.+ If+an+asset+is+impaired, the+cumulative+loss+is+ reclassified+ from+ the+availableEforEsale reserve+ to+ the+ statement+of+profit+or+loss+in+financial+expenses.

The+Management evaluates+ whether+ the+ ability+ and+ intention+ to+ sell+ its+ availableEforEsale financial+ assets+in+the+near+term+is+still+appropriate.+When,+in+rare+circumstances,+the+Group+is+unable+to+trade+ these+financial+assets+due+to+inactive+markets and+the+management+has+no+intention+sell+these+assets+ in+ the+ near+ term,+ the+ Group+ may+ elect+ to+ reclassify+ these+ financial+ assets.+ Reclassifying+ to+ the+ category+ of+ loans+ and+ receivables+ is+ allowed+ if+ the+ financial+ asset+ meets the+ criteria of+ loans+ and+ receivables+and+the+management+has+the+ability+and+intention+to+hold+the+assets+for the foreseeable+ future+ or+ until+ maturity.+ Reclassification+ to+ the+ category+ heldEtoEmaturity+ is+ only+ allowed+ if+ the+ management+has+the+ability and+intention to+hold the+financial+asset+according+to+this+classification.

Impairment of+financial+assets

At+each+balance+sheet+date,+ the+carrying+amount of+ financial+assets+which+are+not+measured+at+ fair+ value+through+profit+or+loss,+the+Group+assesses whether+there+is+objective+evidence+that+a+financial+ asset+or+a+group+of+financial+assets+is+impaired. Objective+evidence+can+be,+for+example,+considerable+ financial+ difficulties+ on+ the+ part+ of+ the+ debtor,+ a+ breach+ of+ contract+ such+ as+ a+ default or+ delay+ in+ paying+ interest+ or+ repayments,+ increased+ likelihood+ that+ the+ borrower+ will+ declare+ insolvency+ or+ other restructuring+activities,+the+discontinuation+of+an+active+market,+and+significant+changes+to+the+ technological,+marketErelated,+economic,+ or+ legal+environment.+ For+equity+ instruments+which+were+ categorised+as+available+for+sale,+a+significant+or+longerElasting+decrease+of+the+fair+value+is+objective+ evidence+ of+ impairment.+ A+ loss+ of+at+ least+ 20% of+ the+ initial+ cost is+ seen+ as+ significant,+ and+ a+ time+ frame+will+be+defined+as+longer+lasting+if+it+lastsElonger+than+six+months.

- Financial+assets+carried at+amortised+cost

The+amount+of+an+impairment+loss for+a+financial+asset+carried at+amortised+cost+is+measured+as+the+ difference+ between+ the+ carrying+ amount and+ the+ present+ value+ of+ estimated+ future+ cash+ flows excluding+ future+ expected+ credit+ losses+ that+ have+ not+ yet+ been+ incurred.+ The+ present+ value+ of+ the+

estimated+future+cash+flows+is+discounted+at+the+financial+asset's+original+effective+interest+rate. The+ impairment+loss+is+recognised+in+profit+or+loss. If,+in+a+subsequent+year,+the+amount+of+the+estimated+ impairment+loss+decreases+because+of+an+event+occurring+after+the impairment+was+recognised,+the+ previously+ recognised+ impairment+ loss+ is+ reduced+ by+ adjusting+ the+ allowance+ account.+ An+ appreciation+in+value+cannot+be+higher+than+the+amortised+cost.

Trade receivables+are+included+in+a+group+of+financial+assets+with+similar+credit+risk+characteristics+and+ collectively+ assessed for+ impairment.+ Historic+ credit risk+ is+ calculated+ on+ the+ basis+ of+ the+ type+ of+ payment+method+used+and+days+overdue.+Impairment+losses are+recognised+in+profit+or+loss.

- AvailableEforEsale+financial+assets

If+ the+ impairment+ loss of+ an+ availableEforEsale+ financial+ asset+ has been so+ far+ recorded+ directly+ in+ other+ comprehensive+ income/loss+ (recognised+ as+ cumulative+ amount+ in+ equity),+ these+ impairment+ losses recognised+ in+ equity+ will+ be+ derecognised+ through+ profit+ or+ loss+ as+ soon+ as+ there+ exists+ objective+evidence+for+impairment.+

The+amount+of+the+impairment+loss is+measured+as+the+difference+between+the+acquisition+cost+(less+ repayments+ and+ amortisation)+ and+ the+ current+ fair+ value,+ less+ any+ impairment+ loss+ on+ that+ investment+previously+recognised+in+profit+or+loss.+Impairment+losses+on+equity+investments+are+not+ reversed+through+profit+or+loss;+increases+in+their+fair+value+after+impairment+are+recognised+in+OCI.

If,+ in+ a+ subsequent year,+ the+ fair+ value+ of+ a+ debt+ instrument+ increases+ and+ the+ increase+ can+ be+ objectively+related+to+an+event+occurring+after+the+impairment+loss+was+recognised+in+profit+or+loss,+ the+impairment+loss+is+reversed+through+profit+or+loss.

Derecognition of financial+assets

Financial+assets+are+derecognised if+the+ rights+ to+ receive+cash+ flows+ from+ the+asset+have+expired+or+ the+Group has+transferred+its+rights+to+receive+cash+flows+from+the+asset to a+third+party+and+has,+in+ effect,+transferred+all+risks+and+opportunities+associated+with+this+ownership.

In+ the+ case+ of+ a+ complete derecognition of+ a+ financial+ asset,+ the+ difference+ between+ the+ carrying+ amount and+the+sum+of+the+consideration obtained+or to+be+obtained+and+all+cumulated+profits+and+ losses+which+have+been+recorded+in+other+comprehensive+income/loss+and+accrued+in+equity+is+to+be+ recorded+through profit+or loss.

Receivables+ are+ derecognised including+ associated+ impairment+ losses if+ they+ are+ classified+ as+ uncollectable.+If+a+derecognised receivable+is+later+reclassified+as+collectable+on+the+basis+of+an+event+ that+has+occurred+after+it+was+derecognised,+ then+ the+corresponding+amount+is+recorded+directly+in+ other+operating+income.

The+Group+ sells+uncollectable trade+ receivables+and+trade+ receivables+with+ the+associated+payment+ method+"invoice" to+various+service+companies.+Financial+assets+sold+in+this+way+are+derecognised at+ the+selling+ date,+ provided+ all+ risks+ and+ opportunities+ are+ essentially+ transferred+ to+ the+ acquirer.+ If+ essentially+all+risks+and+opportunities+have+not+been+transferred nor+retained,+the+financial+assets+will+ be+ derecognised at+ the+selling+ date only,+ if+ it+ is+ certain+ that+ the+ acquirer+ obtains control+ over+ the+ financial+assets.+If+essentially+all+risks+and+opportunities+remain+with+ the+Group,+ the+ financial+assets+ will+continue+to+be+recognised as+collateral for+a+recorded liability.

4.9 Derivative)financial)instruments)

Derivative+financial+instruments+are+initially+recognised+at+fair+value+on+the+date+on+which+a+derivative+ contract+ is+ entered+ into+ and+ are+ subsequently+ remeasured+ at+ fair+ value.+ The+ method+ of+recording profits+ and+ losses+ depends+ on+ whether+ the+ derivative+ financial+ instrument+ was+ designated+ as+ a+ hedging+ instrument+ and,+ if+ so,+ what+ the+ nature+ of+ the+ hedged+ item+ is.+ The+ Group+ will+ designate+ certain+derivative+financial+instruments+either+as:

• hedging+of+fair+value+for+a+recognised+asset,+a+liability,+or+an+offEbalance,+fixed+obligation+(fair+ value+hedge);
• hedging+ against+ certain+ risks+ arising+ from+ volatile+ cash+ flows+ (cash+ flow+ hedge)+ connected+ with+a+recognised+asset+or+liability+or+an+expected transaction that+is+more+likely+to+occur+in+ the+future;+or
• hedging+of+a+net+investment+in+a+foreign+operation+(net+investment+hedge).

No+ derivative+ financial+ instruments+ or+ hedges+ were+ present+ in+ the+ financial+ years+ 2012.+ In+ the+ financial+ years+ 2013+ and+ 2014,+ the+ Group+ recognised+ a+ derivate,+ with+ regards to+ the+ contingent+ consideration from+ the+ acquisition+ of+ windeln.ch+ AG+ (formerly: Kindertraum.ch+ AG)+ within+ other+ financial+assets.+See+section+7+for+further+details.+

4.10 Inventories)and)prepayments)

Purchased+merchandise+recognised+as+inventories+is,+in+accordance+with+IAS+2,+reported+at+the+lower+ of+ cost and+net+ realisable+ value.+The+ costs+are+ calculated+ using+ the+average+ cost and+ comprise+ the+ acquisition+price+plus+directly+allocable incidental acquisition costs less+any+deductions.+They+do+not+ include+any+borrowing+costs.+Net+realisable+value+is+the+estimated+selling+price+in+the+ordinary+course+ of+business+less+the+estimated+unavoidable+variable+sales+costs.+Inventory+risks,+which+are+the+result+ of+ storage+ duration,+ reduced+ usability+ or+ similar+ circumstances,+are+ taken+into+ consideration+in+ the+ allowance.+ Provided+ the+ reasons+ for+ impairment+ losses recorded in+ earlier+ periods+ are+ no+ longer+ present,+appreciations+are+carried+out+up+to+the+amount+of+the+original+acquisition+costs.

4.11 Cash)and)cash)equivalents)

Cash+ and+ cash+ equivalents+ include+ cash+ on+ hand,+ demand+ deposits,+ other+ current,+ highly+ liquid+ financial+ assets+ with+ an+ original+ maturity+ of+ three+ months+ or+ less,+ and+ bank+ overdrafts.+ They+ are+ valued+according+to+their+nominal+value.+Utilised+bank+overdrafts+are+recognised+as+liabilities+to+banks+ under+the+balance+sheet+item+'current+financial+liabilities'.

4.12 Financial)liabilities)including)trade)payables)

Recognition and+measurement

Financial+liabilities+regularly+lead+to a+contractual+obligation+to+deliver cash or+another+financial+asset+ and+are+classified+pursuant+to+IAS+39+as+follows:

• Financial+liabilities+classified+at+fair+value+through+profit+or+loss

Financial+liabilities+classified+at+fair+value+through+profit+or+loss+are+financial+liabilities+held+for+trading+ purposes+and+other+financial+liabilities+classified+upon+initial+recognition+at+fair+value+through+profit+or+ loss.+ A+ financial+ liability+ is+ assigned+ to+ this+ category+ if,+ in+ principle,+ it+ has+ been+ acquired+ with+ the+ intention+ to+ settle in+ the+ short+ term.+ Derivatives+ also+ belong+ in+ this+ category+ unless+ they+ are+ designated+ as+ hedging+ instruments+ in+ hedging+ relationships+ pursuant+ to+ IAS 39.+ Financial+ liabilities+ from+this+category+are+presented+as+current+liabilities+if+it+is+expected+that+they+will+be+settled within+ twelve+months.+All+other+liabilities+are+classified+as+nonEcurrent.+The+Group+has+so+ far+not+classified+ any+ financial+ liabilities+ as+ heldEforEtrading+ purposes+ and+ has+ not exercised its right+ to+ designate financial+liabilities+upon+initial+recognition+in+this+category.

• Financial+liabilities+measured+at+amortised+cost

Financial+liabilities+measured+at+amortised+cost+include+trade+payables,+liabilities+to+banks+and+other+ financial+liabilities+not+held+ for+trading purposes.+Trade+payables+are+payment+obligations+ for+goods+ and+ services+ acquired+ in+ the+ course+ of+ normal+ business+ activities.+ Other+ financial+ liabilities+ are+ recognised+as+current+liabilities if+ the+payment+obligation+is+due+within+one+year+or+less.+Otherwise they+ will+ be+ classified as+ nonEcurrent+ liabilities.+ The+ Group's+ financial+ liabilities+ measured at+ amortised+cost+are+recognised+as 'trade+payables',+'financial+liabilities'+and+'other+financial+liabilities'.

The+management+will+define+the+classification+of+financial+liabilities+at+initial+recognition.

All+financial+liabilities+are+measured+at+fair+value upon+initial+recognition,+and+in+the+case+of+liabilities to+banks,+less+the+transaction+costs+directly+allocable to+the+acquisition.

According+to+IAS+32+the+Group+can+only+record+equity,+if+no+obligation+exists+to+repay+the+capital+or,+ alternatively,+to+deliver+other+ financial+assets.+An+obligation+to+repay company+assets+may+arise+if+a+ shareholder+ has+a+ right+ to+terminate and+if,+at+ the+ same+ time,+exercising+ this+ right+would+ form+ the+ basis for+compensation+claims+from+the+Group.

Subsequent+measurement

The+subsequent+evaluation+of+financial+liabilities+is+dependent+on+their+classification.

• Financial+liabilities+classified+at+fair+value+through+profit+or+loss

Financial+liabilities+in+this+category+are+measured+upon+their+ first+recognition+at+ fair+value+until+they+ are+derecognised.+The+profits+and+losses+from+a+change+in fair+value+are+recorded+in profit+or+loss+in+ the+period+in+which+they+occur.+Profits+and+losses+include+both+realised+gains+and+losses+which+arise+ when+disposing+of+the+financial+liabilities+and+also+unrealised+gains+and+losses+which+result+from+the+ subsequent+measurement of+financial+liabilities.

• Financial+liabilities+measured+at+amortised+cost

In+ order+ to+ simplify+ the+ subsequent+measurement,+ current+ trade+ payables+as+well+as+ other+ current+ financial+ liabilities+ are+measured using+ their+settlement amount.+ NonEcurrent+ financial+ liabilities+ as+ well+as+bank+liabilities+are+carried+at+amortised+cost+according+to+the+effective+interest+method.+Gains+ and+losses+are+recognised+in+profit+or+loss+when+the+liabilities+are+derecognised+as+well+as+through+the+ effective+interest+rate+(EIR)+amortisation+process.+Amortised+cost+is+calculated+by+taking+into+account+ any+discount+or+premium+on+acquisition+and+fees+or+costs+that+are+an+integral+part+of+the+EIR.+The+EIR+ amortisation+is+included+as+financial expenses in+the+statement+of+profit+or+loss.

Derecognition

A+ financial+ liability+ is+ derecognised if+ the+ Group's+ corresponding+ obligation+ is+ settled,+ revoked+ or+ expired.+ The+ difference+ between+ the+ carrying+ amount of+ the+ financial+ obligation+derecognised and+ the+consideration obtained+or+to+be+obtained+is+recognised+in profit+or+loss.

When+an+existing+financial+liability+is+replaced+through+the same+lender+by+another+financial+liability+ with substantially+ different+ contractual+ terms,+ or+ the+ terms+ of+ an+ existing+ liability+ are+ materially+ modified,+such+an+exchange+or+modification+is+treated+as+a+derecognition of+the+original+liability+and+ the+recognition+of+a+new+liability.

Offsetting+financial+instruments

Financial+assets+and+financial+liabilities+are+offset+and+the+net+amount+is+reported+in+the+consolidated+ statement+of+financial+position+if+there+is+a+currently+enforceable+legal+right+to+offset+the+recognised+ amounts+ and+ there+ is+ an+ intention+ to+ settle+ on+ a+ net+ basis,+ to+ realise+ the+ assets+ and+ settle+ the+ liabilities+simultaneously.

Financial+guarantees

Financial+guarantees are+those+contracts+that+require+a+payment+to+be+made+to+reimburse+the+holder+ for+a+loss+he incurs+because+ the+specified+debtor+ fails+ to+make+a+payment+when+due+in+accordance+ with+the+terms+of+a+debt+instrument.+

Obligations+from+financial+guarantees+are+determined+upon+acquisition+at+their+fair+value+and,+if+not+ measured+at+fair+value+through+profit+or+loss,+are+valued+subsequently+at the+higher+amount+resulting+ from+the+value+calculated+pursuant+to+IAS 37+'Provisions,+Contingent+Liabilities+and+Contingent+Assets'+ for+the+contractual+obligation+and+resulting+from+the+originally+calculated+amount+less+the+cumulated+ amortisation.

No+financial+guarantees+were+present+in+the+financial+years+2014,+2013+or+2012.

4.13 Provisions)

Provisions+ are+ recognised pursuant+ to+ IAS 37+ provided+ the+ following+ conditions+ have+ been+ cumulatively+met:

• The+Group+has+an+existent legal+or+factual+obligation.
• This+obligation+is+the+result+of+a+past+event.

• It+ is+ more+ likely+ than+ not+ that+ the+ settling+ of+ this+ obligation+ will+ lead+ to+ an+ outflow+ of+ resources.

• The+provision+amount+can+be+reliably+measured.

No+provisions+will+be+recognised for+future+operational+losses.

The+provision+amount+is+estimated+as+best+as+possible+to+take+into+consideration+all+recognisable+risks+ that+may+arise+from+the+obligation.+In+principle,+the+amount+repayable+with+the+highest+likelihood+of+ occurring+ will+ be+ assumed.+ NonEcurrent+ provisions+ with+ a+ maturity+ of+ more+ than+ one+ year+ are+ discounted+to the+balance+sheet date.+If+the+effect+of+the+time+value+of+money+is+material,+provisions+ are+discounted+using+a+current+preEtax+rate+that+reflects,+when+appropriate,+the+risks specific+to+the+ liability.+The+increase+in+the+provision+due+to+the+unwinding+of+the+discount+is+recognised+as+financial+ expenses+in+profit+or+loss.

If+a+number+of+identical+obligations+exist,+the+likelihood+of+an outflow+of+resources will+be+measured for the+group+of+these+obligations.+A+provision+will+also+be+recognised if+the+likelihood+of+an outflow+ of+resources in+relation+to+individual+obligations+within+this+group+is+remote.

Asset+retirement+obligation

Provisions+are+recognised for+asset+ retirement obligations for+ fixtures+built+into+ rented+ spaces.+The+ provision+ will+ be+ calculated+ as present value+ of+ the+ expected+ costs+ to+ settle+ the+ obligation.+ The+ obligations+will+be+capitalised+at+the corresponding+amount+as+part+of+the+cost of+the+particular+asset.+ The+estimated+cash+ flows+are+discounted+at+a+current+preEtax+ rate+ that+ reflects+ the+ risks+specific+ to+ the+ asset+ retirement+ obligation.+ The+ unwinding+ of+ the+ discount+ is+ expensed+ as+ incurred+ and+ recognised+as+financial+expenses+in+profit+or+loss.

There+were+no+asset retirement obligations+present+for+the+financial+years+2014,+2013+and+2012.

4.14 Employee)benefits)

Bonus+schemes

For+bonus+payments+after+the+end+of+the+respective+financial+year for+the+preceding financial+year,+an obligation is+recognised+and+the+corresponding+expenses+are recognised as personnel+expenses.+The+ amount of+the+obligation is+measured individually+for+each+employee+for+whom+either+a+contractual+ bonus+obligation+or+a+factual+obligation+due+to past+practice exists.

ShareEbased+payments

Selected+management+team+members receive+shareEbased+payments for+work+carried+out+in+form+of+ a+cash+settlement.+

Pursuant+ to+ IFRS+ 2,+ cashEsettled transactions are+ recognised+ at fair+ value+ at+ the+ time+ they+ are granted.+A Monte+Carlo+simulation+is+used+for+this+purpose+within+the+Group.+The+fair+value+is+spread+ and+recognised+in+profit+or+loss+over the+period+in+which+services+are+rendered+by+the+beneficiaries,+ the+ soEcalled+ vesting+ period,+ and+ recorded+ with+ a+ corresponding+ liability.+ Up+ until+ the+ liability is+ settled,+the+liability will+be+ recalculated+at+every+balance+sheet+date+and+at+ the+date+of+settlement.+ Changes+to+fair+value+are+recorded+through+profit+or+loss.

In+addition,+shares+were+issued+in+the+context+of+a+business+combination with+a+conditional obligation+ to+ return+ these+shares.+ This+ conditional+ obligation+ is+ accounted+ for+ in+ line+ with IFRS+ 2.+ For+ further+ details+see+section 7.

Defined+benefit+obligations

The+defined+benefit+obligation in+connection+with+the company's pension+plan was+calculated+based+ on+ actuarial+ values+ according+ to+ the+ projected+ unit+ credit+ method+ prescribed+ in+ IAS+ 19+ (Employee+ Benefits),+wherein+an+actuarial+valuation+is+carried+out+at+each+balance+sheet+date.+The+projected+unit+ credit+method takes+into+consideration+both+ the+retirements known+and+entitlements+earned as+of the+balance+sheet+date,+as+well+as+future+anticipated+salary+and+pension+increases.+These+assumptions+ may+ change+ and+ are+ subject+ to+ estimation,+ since+ their+ future+ development+ is+ not+ foreseeable.+ Actuarial+ gains+ or+ losses+ calculated+ at+ yearEend+ between+ the+ pension+ obligations+ and+ the+ pension+ plan+ assets,+ both+ calculated+ according+ to+ schedule, are+ recorded+ directly+ in+ other+ comprehensive+ income/loss+ not+ affecting+ profit+ or+ loss.+Recognising+ actuarial gains and+ losses+recognised+ in+ other+ comprehensive+income/loss+in+subsequent+periods+in+profit+or+loss is+not+permitted.+The+difference+ between+ the+ expected+ net+ interest+ results+ and+ the+ actual+ profit+ is+ also to+ be+recognised+ in other+ comprehensive+income/loss not+affecting+profit+ or+loss.+The+interest+portion of+the+increase of+ the+ provision recognised+ as pension expenses (actuarial+ interest+ rate+ is+ applied to+ the+ liability and+the+ plan+asset)+is+to+be+shown+as+a+net+figure (net+interest+result)+as financial+expenses+in+profit+or+loss.+ The+pension+provision+(net+pension+obligation)+in+the+statement+of+financial+position is+calculated+as+ the+fair+ value+ of+ the+defined+ benefit obligation+at+ the+ balance+ sheet+ date+less+ the+ fair+value+ of+ the+ plan+asset,+and+where+appropriate+taking+into+consideration+the+rules+regarding+the+upper+value+limit+ of+a+surplus of+the+plan+asset+over+the+obligation+(soEcalled+asset+ceiling).

Payments+resulting+from+the termination+of+employment relationships

Payments+ resulting+ from+ the termination+ of+ employment relationships are+made if+ employees+ are+ released+ from+ a+ Group+ company+ before+ standard+ retirement+ age+ under+ payment+ of+ a+ severance+ package+ or+ if+ employees+ voluntarily+ leave+ the+ employment relationship,+ waving+ their+ right+ to+ a+ severance+ package.+ The+ Group+ records+ severance+ package+ services+ when+ there+ is+ a+ demonstrable+ obligation+ to+ terminate+ the+employment relationship+ of+ current employees+according+ to+a+ detailed+ formal+ plan+ which+ cannot+ be+ retracted,+ or+ when+ the+ Group+ is+ demonstrably+ to+ provide+ severance+ packages+upon+voluntary+termination+of+the+employment relationship+on+the+part+of+the+employee.+ Payments due+more+than+twelve+months+after+the+balance+sheet+date+are+discounted+to+their+present value.

4.15 Income)taxes)and)deferred)taxes)

The+tax+expenditure+for+the+period+consists+of+current+and+deferred+taxes.+Taxes+are+recognised+in the+ statement+of+profit+or loss,+unless+they+relate+to+items+that+are+recognised+directly+in+equity+or+other+ comprehensive+ income/loss.+ In+ this+ case,+ the+ related+ taxes+ are+ also recorded+ in+ equity+ or+ other+ comprehensive+income/loss.

Current+tax+expense+is+calculated+on+the+basis+of+the+tax+regulations+applicable+on+the+balance+sheet+ date+ in+ those+ countries+ in+ which+ the+ subsidiaries+ are+ operating and+ generate+ taxable+ income.+ The+ management+regularly+checks+tax+declarations,+particularly+with+regards+to+matters+which+leave+room+

for interpretation,+and,+if+appropriate,+recognises+provisions+based+on+the+amounts+that+are+likely+to+ be+payable+to+the+tax+authorities.

Deferred+ taxes+ are+ measured+ using+ the+ tax+ rates+ (and+ tax+ regulations)+ that+ apply+ or+ have+ been+ substantively+enacted+on+the+balance+sheet+date+and+are+expected+to+apply+at+the+time+the+deferred+ tax+asset+is+realised+or+the+deferred+tax+liability+is+settled.

Deferred+taxes+are+recognised+for+all+temporary+differences+between+the+tax+base+of+the+assets+and+ liabilities+ and+ their+ carrying+ amount in+ the+ IFRS+ consolidated+ financial+ statements,+ as+ well+ as+ for+ losses+carried+forward+(liability+method).

If,+ however,+ in+ the+ context+ of+ a+ transaction+ which+ does+ not+represent a+ business+ combination,+ a+ deferred+ tax+ results+ from+ the+ initial+measurement of+an+asset+ or+ liability,+which+at+ the+ time+ of+ the+ transaction+has+no+effect+on+either+the+IFRS or+the+taxable+profit+or+loss,+then+no+deferred+taxes+will+ be+ recognised at+ the+ time+ of+ the+ initial+ measurement and+ thereafter.+ Moreover,+ no+ deferred+ tax+ liabilities+are+recognised upon+ the+initial+ recognition of+goodwill.+Deferred+ tax+liabilities+which+arise+ from temporary+ differences+ associated+ with+ investments+ in+ subsidiaries+ are+recognised,+ unless+ the+ Group+is+able+to+control+the+timing+of+the+reversal+of+the+temporary+differences+and+it+is+probable+that+ the+ temporary+ differences+ will+ not+ reverse+ in+ the+ foreseeable+ future+ based+ on+ this+ influence.+ Deferred+tax+assets+on+temporary+differences+and+losses+carried+forward+are+only+recognised if+their+ recoverability seems+adequately+assured+in+the+near+future.

The+ carrying+amount+ of+ deferred+ tax+assets+is+ reviewed+at each+ reporting+ date+and+ reduced+ to+ the+ extent+that+it+is+no+longer+probable+that+sufficient+taxable+profit+will+be+available+to+allow+all+or part+of+ the+ deferred+ tax+ asset+ to+ be+ utilised.+ Unrecognised+ deferred+ tax+ assets+ are+ reEassessed+ at+ each+ reporting date+ and+ are+ recognised+ to+ the+ extent+ that+ it+ has+ become+ probable+ that+ future+ taxable+ profits+will+allow+the+deferred+tax+asset+to+be+recovered.

Deferred+tax+assets+and+deferred+tax+liabilities+are+offset+if+a+legally+enforceable+right+exists+to+set+off+ current+ tax+ assets+ against+ current+ tax+ liabilities+ and+ the+ deferred+ taxes+ relate+ to+ the+ same+ taxable+ entity+and+the+same+tax authority.

Default+interest+or+interest+on+arrears+on+delayed payments of income+tax+or+supplementary+income+ tax+which+are+not+taxEdeductible+are+recognised+in+the income tax+result.

4.16 Recognition)of)income)and)expenses)

Revenue and+ other+ operating+ income+ is recognised pursuant+ to+IAS+ 18+ at+ the+ time+ the+ service+ has+ been+ rendered,+ provided+ the+ amount+ of+ revenue+ or+ income can+ be+ measured+ reliably+ and+ it+ is+ probable+that+the+economic+benefits+will+flow+to+the+Group.+Revenue is measured at+the+fair+value+of+ the+consideration+received+or+receivable, taking+into+account contractually+defined+terms+of+payment+ and+excluding+taxes+or+duty.+Sales+deductions+reduce+the+revenue+recognised.

Revenue+from+the+sale+of+goods+is+recognised+when+the+significant+risks+and+rewards+of+ownership+of+ the+goods+have+passed+to+the+buyer,+usually+on+delivery+of+the+goods.+Revenue+from+the+sale+of+goods+ is+recognised net,+e.g. of+VAT,+returns,+trade+discounts,+customer+bonuses+and+rebates.

When+ rendering+ services,+ revenues+ are+ recognised over+ the+ period+ during+ which+ the+ service+ is+ rendered.+ Services+mainly comprise+ of+flyers+ provided+ for+ a+ charge+ and+ online+ advertising+ (banner+ insertions).

Expected returns+of+goods

The+company+generally+grants+customers+a+14Eday+return+period+for+goods+delivered.

The+expected+volume+of returns+after+ the+balance+ sheet+date+is+recognised as+a+gross+ figure+in+ the+ statement+ of+ profit+ and+ loss and+ other+ comprehensive+ income. Revenues+ are+ reduced+ by+ the+ expected+amount+of+consideration to+be+repaid+on+the+basis+of+historic+return+figures.+The+expenses+ recognised+ in+ connection+ with+ delivered goods+ are+ corrected+ to+ reflect+ the+ estimated+ volume+ of+ returns.+ The+ Group's+ claim+ for+ the return+ of+ delivered+ goods+ is+ recognised+ as+ other+ current nonE financial+asset+and+an+obligation+to+refund+the+purchase+price+to+the+customer+is+recognised+as+other+ current+financial liability.

Loyalty points+programme

The+ Group+ operates a+ selfEcontained+ and+ selfEissued+ loyalty+ points+ programme+ ("family+ bonus+ programme") which+ allows+ customers+ to+ accumulate+ points+ when+ they+ purchase+ products+ in+ the+ Group's online+shops+as+well+as+when+they successfully recommend it to+a+friend.+

Collected+ bonus+ points+ can+ be+ used+ to+ get+ discounts+ on+ future+ purchases.+ The+ reward+ obtained+ is+ allocated between+ the+ products+ sold+ and+ the+ points+ issued, the+ reward+ is+ allocated+ to+ the+ points+ according+to+their+fair+value.+

The+points'+ fair+value+is+measured on+ the+basis+of+ the+rewards+granted when+redeeming the bonus+ points,+ taking+ into+ consideration+ historic+ redemption+ rates.+ The+ fair+ value+ of+ the+ issued+ points+ is+ recognised+as+other+provision+while+reducing+revenues,+and+is+only+recognised+as+revenue+once+ the+ points+have+actually+been+redeemed.

Savings+plan

The+ Group+ offers+ its+ customers+ the+ opportunity+ to+ obtain+ a+ "Pampers+ Savings+ Plan" for+ a+ fixed+ amount.+This+savings+plan+gives+the+customer an+allocable discount+(percentage+on+normal+sale+price)+ on future+ purchases+ of+ Pampers+ over+ a+ contractually+ determined+ period+ of+ time.+ The+ revenues+ generated+ from+ the+ sales+ of+ savings+ plans+ are+ accrued+ as+ deferred revenue in+ the+ statement+ of+ financial+position,+and recognised+in+revenues+over+the+validity+period+of+the+individual+savings+plan.

The+ Management+ has+ analysed+ its+ business+ relationships+ in+ order+ to+ assess whether+ the+ Group+ operates as+a+Principal+or+an Agent.+The+Management+ has+ come+ to+ the+ conclusion+ that+ the+Group+ operates as+a+Principal in+all+revenue+transactions.

Operating+ expenses+ are+ recognised at+ the+ point+ at+ which+ the+ service+ is+ rendered,+ the+ delivery+ received+or+at+the+date+they+are+incurred.

Interest+ income+ and+ expenses+E using+ the+effective+ interest+method+E are+recognised as+ income or+ expense in+the+period+in+which+they+are+incurred.

The+determination+of+whether+an+arrangement+is+(or+contains)+a+lease+is+based+on+the+substance+of+ the+arrangement+at+the+inception+of+the+lease. The+arrangement+is,+or+contains,+a+lease+if+fulfilment+of+ the arrangement+is+dependent+on+the+use+of+a+specific+asset+or+assets+and+the+arrangement+conveys+a+ right+to+use+the+asset+or assets,+even+if+that+right+is+not+explicitly+specified+in+an+arrangement.

A+lease+that+transfers+substantially+all+the+risks+and+rewards+incidental+to+ownership+to+the+Group+is+ classified+as+a+finance+lease. All+other+lease+arrangements+are+classified+as operating+lease.

Rented+assets+which can+be+considered+as+acquired+assets with longEterm+ financing+are+categorised+ as+financial+lease.+Finance+leases+are+capitalised+at+the+commencement+of+the+lease+at+the+inception+ date+ fair+ value+ of+ the+ leased+ property or,+ if+ lower,+ at+ the+ present+ value+ of+ the+ minimum+ lease+ payments.+ The+ corresponding+ liability+ is+ recognised in+ the+ consolidated+ statement+ of+ financial+ position+as+a+financial liability.

Currently the+Group has+finance+lease agreements+for+office+equipment such+as+printers+and+copiers.+ None+of+these+agreements+are+deemed+as+individually+material+for+the+Group.

The+leased+asset is+ not capitalised+in+a+ case+ of+an+operating+leasing.+Operating+lease+ payments+are+ recognised+as+an+operating+expense+in+the+statement+of+profit+or+loss+on+a+straightEline+basis+over+the+ lease+term. Significant+operating+leasing+relationships+within+the+Group+concern+the+renting+of+office spaces+and+logistics+properties.

4.18 Fair)value)measurement)

The+ Fair+ value+ is+ defined+as+ the+ price+ that+would+ be+ received+ to+ sell+an+ asset+ or+ paid+ to+ transfer+a+ liability+in an+orderly+transaction+between+market+participants+at+the+measurement+date.

The+ fair+ value+measurement+ is+ based+ on+ the+ presumption+ that+ the+ transaction+ to+ sell+ the+ asset+ or transfer+ the+ liability+ takes+ place+ either in+ the+ principal+ market+ for+ the+ asset+ or+ liability or,+ in+ the+ absence+ of+ a+ principal+ market,+ in+ the+ most+ advantageous+ market+ for+ the+ asset+ or+ liability. The+ principal+or+the+most+advantageous+market+must+be+accessible+by+the+Group.

The+ fair+value+of+an+asset+or+a+liability+is+measured+using+ the+assumptions+ that+market+participants+ would+use+when+pricing+the+asset+or+liability,+assuming+that+market+participants+act+in+their+economic+ best+interest.

The+ Group+ uses+ valuation+ techniques+ that+ are+ appropriate+ in+ the+ circumstances+ and+ for+ which+ sufficient+data+are+available+to+measure+fair+value,+maximising+the+use+of+relevant+observable+inputs+ and+minimising+the+use+of+unobservable+inputs.

All+assets+and+liabilities+for+which+fair+value+is+measured+or+disclosed+in+the+financial+statements+are+ categorised+within+the+fair+value+hierarchy,+described+as+follows:

• Level+1:+Quoted+unadjusted market+prices+in+active+markets+for+identical+assets+or+liabilities;
• Level+2:+directly+or+indirectly+observable input+factors,+which+are+not+categorised+in+level+1;
• Level+3:+Unobservable+input+factors.

For+ assets+ and+ liabilities+ that+ are+ recognised+ in+ the+ financial+ statements+ on+ a+ recurring+ basis,+ the+ Group determines+whether+ transfers+ have occurred+ between+levels+in+ the+ hierarchy+ by+ reassessing+ categorisation+(based+on+the+lowest+level+input+that+is+significant+to+the+fair+value+measurement as+a+ whole)+at+the+end+of+each+reporting+period.

The+fair+value+of+financial+assets+traded+on+an+active+market+is+based+on+the+quoted market+price+as+of+ the+balance+sheet+date.+A+market+is+considered+active+if+listed+prices+on+a+stock+exchange+are+easily+ and+regularly+obtainable+for+a+trader,+broker,+industry+group,+price+calculation+service,+or+supervisory+ authority+and+these+prices+reflect current+and+regularly+occurring+market+transactions+such+as+those+ between+independent+ third+ parties.+For+assets+ held+ by+ the+Group,+ the+ proper+quoted market+ price+ corresponds+to+the+bid+price+offered+by+the+acquirer.

The+ fair+ value+ of+ financial+ instruments+ not+ traded+ on+ an+ active+ market+ is+ determined+ by+ applying+ valuation+methods.+ The+ fair+ value+ is+ therefore+measured on+ the+ basis+ of+ the+ results+ of+ a+ valuation+ process+which+relies+as+much+as+possible+on+market+data+and+as+little+as+possible+on+companyEspecific+ data.+ If+ all+ data+ necessary+ for+ the+ fair+ value measurement can+ be+ observed,+ the+ instrument+ is+ assigned+to+Level+2.+Should+one+or+more+significant+input+factors+not+be+based+on+observable+market+ data,+the+instrument is+assigned+to+Level+3.

Specific+ valuation+ processes+ used+ for+the+ fair+ value+ measurement+ of financial+ instruments+ contain mainly present+value models+based+on+market+data+valid+as+of the+balance+sheet date.

4.19 Events)after)the)reporting)period)

Business+transactions+which+became+known+after+the+balance+sheet+date,+but+arose+economically+on+ or+before the+reporting+date,+are+included+in+the+consolidated+annual+financial+statements.+Essential+ business+transactions+which+arose+economically+after+the+balance+sheet+date+are+explained.

5. Significant)accounting)judgements,)estimates)and)assumptions)

The+preparation+of+the+Group's+consolidated+financial+statements+requires+the+Management+to+make+ accounting+judgements,+estimates+and+assumptions+ that+affect+ the+ reported+amounts+ of+ revenues,+ expenses,+assets+and+liabilities,+and+the+disclosure+of+contingent+liabilities,+at+the+balance+sheet+date.+ The+estimates+and+assumptions+each+ underlie+ respective+ parameters+ based+on+ current+information+ available.+ In+ particular,+ circumstances+ present+ at+ the+ time+ of+ preparing+ the+ consolidated+ financial+ statements+as+well+as+rationally assumed future+developments+in+ the+industry+were+used+as+a+basis+ with+regards+to+the+expected+future+development+of+the+business.

The+ uncertainty+ connected+ with+ these+ assumptions+ and+ estimates+ and+ the+ developments+ of+ the+ framework+conditions+that+are+outside+the+influence+of+the+Management+could+lead to+results+which+ will+in+ future+periods+require+considerable+adjustments+ to+ the+book+value+of+ the+assets+or+liabilities+ affected.

The+key+assumptions+affecting+future+periods+and+other+key+sources+of+estimation+uncertainty+at+the+ balance+sheet date+that+carry+significant+risk+of+causing+a+substantial+adjustment+to+the+book+values+ of+assets+and+liabilities+within+the+next+financial+year+are+discussed+below.

5.1 Business)combinations)

When+ an+ acquired+ company+ is+ consolidated+ for+ the+ first+ time,+ all+ identifiable+ assets,+ liabilities+ and+ contingent+liabilities+are+to+be+recognised+at+their+fair+value+at+the+acquisition+date.+One+of+the+main+ estimates+relates+to+the+determination+of+the+fair+value+of+these+assets+and+liabilities+acquisition+date+ as+well+as+contingent+consideration.

If+intangible+assets+are+identified,+ depending+ on+ the+ type+ of+intangible+asset+and+ the+ complexity+ of+ determining+the+fair+value,+either+the+independent+opinion+of+an+external+reviewer+is+used+or+the+fair+ value+is+determined+internally+by+using+an+appropriate+valuation+technique,+which+is+usually+based+on+ a+ forecast+of+the+total+expected+cash+ flows. These+valuations+are+closely+linked+to+assumptions+that+ the+Management+has+made+regarding+the+future+development+of+the+respective+assets+as+well+as+to+ the+development+of the applied+discount+rate.

5.2 Goodwill)

As+a+ result+of+an+acquisition,+goodwill will+be+recognised in+ the+consolidated+ statement+of+ financial+ positions.+The+Group+ reviews+at+least+once+a+year+whether+ the+goodwill+is+impaired.+Therefore,+ the+ recoverable amount+ of+ the+ Cash+ Generating+ Unit+ is+ calculated.+ This+ corresponds+ to+ the+ higher+ fair+ value+ less+ costs+ of+ disposal and+ value+ in+ use.+ The+ measurement+ of+ the+ value+ in+ use+ includes+ adjustments+and+estimates+regarding+the+forecasting+and+discounting+of+future+cash+flows.+The+cash+ flow+ forecast on+ the+ basis+ of+ these+ estimates+ is+ influenced+ by,+ for+ example,+ factors+ such+ as+ a+ successful+ integration+ of+ acquired+ companies,+ volatility+ of the+ capital+ markets,+ interest+ rate+ developments,+ fluctuations+ in+ the+ exchange+ rates+ as+ well+ as+ general+ economic+ developments.+ The+ discounted+cash+flows+are+based+on+fiveEyear+forecasts derived+from+financial+planning.+The+cash+flow+

forecasts take+into+account+past+experiences+and+are+based+on+the+management's+best+estimates+of+ future+ developments.+ Cash+ flows+ beyond+ the+ planning+ period+ are+ extrapolated+ using+ individual+ growth+ rates.+ The+ most+ important+ assumptions+ used+ for+ calculating+ the+ fair+ value,+ less+ costs+ of+ disposal and+value+in+use+comprise estimated+growth+rates,+weighted+average+cost+of+capital+and+tax+ rates.+These+estimates,+as+well+as+the+method+to+be+used+as+a+basis+for+these,+have+in+each+instance+a+ significant+influence+on+ the+respective+values+and+ultimately+on+ the+amount+by+which+goodwill+may be+ impaired.+ Although+ the+ Management+ beliefs+ that+ the+ assumptions+ used+ for+ calculating+ the+ recoverable amount+are+appropriate,+various+unforeseeable+changes+to+these+assumptions+could+lead+ to+an+impairment+loss+which+could+influence+the+net+asset,+financial+and income position+negatively.

The+Group+tested the+recognised goodwill+ resulting+ from+ the+acquisition+ of+windeln.ch+AG+and+ did+ not+identify any+need+for recording+an+impairment+loss.+For+more+information+see+section+8.1.

5.3 Assets)

Fixed+assets+and+intangible+assets

At+ each+ balance+ sheet+ date,+ the+ Group+ has+ to+ estimate+ whether+ there+ exists+ evidence+ that+ the+ carrying+ amount of fixed+ assets+ or+ intangible+ assets could+ be+ impaired.+ In+ this+ case,+ as+ well+ as+ annually+in+ the+case+of+an+indefinite useful+life of+an+asset,+ the+recoverable amount+of+ the+asset+in+ question+will+be+estimated.+This+corresponds+to+the+higher+of+fair+value+less+costs+of+disposal and+the value+in+use.+The+discounted+future+cash+flows+of+the+asset+affected+are+to+be+estimated in+order+to+ calculate+the+value+in+use. The+estimation+of+the+discounted future+cash+ flows is+based+on essential+ assumptions+such+as,+in+particular,+those+regarding+future+sales+prices+and+sales+volumes,+as+well+as+ costs+ and+ the+ interest+ rates+ used+ for+ discounting.+ Although+ the+ Management+ assumes+ that+ the+ estimates+ of+ the+ relevant+ expected+ useful+ life,+ the+ assumptions+ regarding+ the+ general+ state+ of+ the+ economy,+and+regarding+the+development+of+the+eEcommerce+business,+as+well+as+those+estimates+of+ the+ discounted+ future+ cash+ flows are+ appropriate,+ an+ adjustment+ of+ the+ analyses+ could+ become+ necessary+ if+ any+ changes+ to+ the+ underlying+ assumptions+ or+ circumstances+ would+ occur.+ This+ could+ result+ in+ future+ additional impairment+ losses or appreciation,+ should+ the+ trends+ identified+ by+ the+ Management+reverse+or+if+the+assumptions+and+estimates+turn+out+to+be+false.+

For+more+information+see+sections+8.1+and+8.2.

Inventories

At+each+balance+sheet+date,+the+Management+reviews+the recoverability+of+the+inventories+on stock.+ Here,+amongst+other+things,+assumptions+are+made+regarding+the+future+achievable+sales+prices+and+ the+necessary+costs+of+goods+sold.

At+31 December+2014,+the+total+allowance on+inventories+amounted+to+kEUR 601 and+kEUR+308 as+of 31 December+2013,+kEUR+136 as+of 31 December+2012+and+kEUR+0 as+of 1 January+2012.

Trade+receivables

The allowance+ for+ trade+ receivables+ is+ calculated+ as+ a+ collective allowance+ for each group+ of+ receivables+with+similar+credit+ risk.+This+credit+ risk+is+based+on+the payment+method+used+and+days+ overdue.

At+31 December+2014,+the+total+allowance on+trade+receivables+amounted+to+kEUR+325 or+kEUR+179 as+of 31 December+2013,+kEUR+96 as+of 31 December+2012+and+kEUR+21 as+of 1 January+2012.

5.4 Provisions)

Determining+ provisions+ is+ to+ a+ significant+ extent+ dependent+ on+ estimates.+ It+ may+ therefore+ be+ necessary+ to+ adjust+ the+ amount+ of+ provisions+ based+ on+ new+ developments+ and+ changes+ to+ the+ underlying+estimates.+Amendments+ to+estimates+and+assumptions+over time can+ have+a+ significant+ effect+ on+ the+future+income+ position. It+ cannot+ be+ ruled+ out+ that+ further+expenditure,+which+ has+a+ significant+ effect+ on+ the+ net+ asset,+ financial+ and+ income+ position+ of+ the+ Group,+ may+ arise+ for+ the+ company+in+addition+to+the+provisions already+recorded.+For+further+information+regarding+provisions+ see+section+8.11.

Loyalty points+programme

The+valuation+of+ the+liabilities+ from+ the+loyalty points+programme+is+based+on+various+assumptions.+ According+to+IFRIC+13+"Customer+Loyalty+Programmes",+issued+and+not+yet+redeemed+loyalty points+ are+deferred at+fair+value.+The fair+value+of+a+loyalty point+is+calculated+on+the+basis+of+the+sales+price+ of+ the+ awarded products.+ Loyalty points+ likely+ to+ expire+ are+ not+ deferred.+ Estimating+ the+ loyalty points+ likely+ to+ expire+ is+ done+ on+ the+ basis+ of+ previously+ observed+ redemption rates,+ taking+ into+ account the current+ terms+ and+ conditions+ for+ the+ loyalty points+ programme.+ The+ assumptions+ and+ processes+used+for+the+estimation+of+the+loyalty points programme+are+described+in+section+8.11.

At+31 December+2014+the+fair+value+of+the+deferred loyalty points+added+up+to+kEUR+1,246 or+kEUR+ 765 as+of 31 December+2013,+kEUR+125 as+of 31 December+2012+and+kEUR+43 as+of 1 January+2012.

5.5 Returns)

To+estimate+the+expected+returns+of+goods+after+the+balance+sheet+date,+the+revenue expected within+ the+14Eday+return period+was+estimated and+measured under+consideration+of+historic+return+rates.

At+31 December+2014+the+deferred+revenue+added+up+to+kEUR+402 or+kEUR+220 as+of 31 December+ 2013+and kEUR+84 as+of 31 December+2012.

5.6 Employee)benefits)

ShareEbased+payments

Costs+ resulting+ from+ cashEsettled+ shareEbased+ payments to+ the+ management+ team+ members+ are+ measured using+ the+ fair+ value+ of+ the+ liabilities+ at+ the+ grant+ date.+ For+ estimating+ the+ fair+ value+ of+ shareEbased+ payments,+ the+ appropriate valuation+ method must+ be+ determined.+ The+ choice+ of+ a+ valuation+method depends+ on+ the+ conditions+ under+ which+ the+shareEbased+ payments+ are granted.+ For+this+estimate,+one+also+needs+to+decide+on+an+input+parameter+suitable+to+be+incorporated+into+ this+valuation+method.+This+includes,+in+particular,+the+expected+option+term,+volatility+and+riskEfree+ interest+ rate,+ and+ the+ corresponding+ assumptions.+ The+ assumptions+ and+ processes+ used+ for+ this+ valuation+of+the+fair+value+of+shareEbased+payments are+described+in+section+8.10.

At+31 December+2014+the+provision+for+shareEbased+payments+added+up+to+kEUR+6,349 or+kEUR+2,930 as+of 31 December+2013,+kEUR+1,271 as+of 31 December+2012+and+kEUR+314 as+of 1 January+2012.

At+31+December+2014+the+most+significant+input+factor+used+with+regards+to+the+measurement+of+the+ shareEbased+ payment+ obligation is the+ current+ share price+ of+ windeln.de+ GmbH.+ An+ increase+ or+ decrease+of+this+share+price+by+10 %+would+result+in+a+kEUR+635+higher+or+lower+shareEbased+payment+ obligation as+of 31+December+2014 (31 December 2013:+kEUR+293,+31 December 2012:+kEUR+127,+1+ January 2012:+kEUR+31).

Pension+obligations

Pensions+ are+ accounted+ for+ in+ accordance+ with+ actuarial+ valuation+ methods.+ These+ valuation+ methods are+ based+ on+ statistical+ and+ other+ factors+ in+ order+ to+ anticipate+ future+ events.+ These+ actuarial+assumptions+may+deviate+significantly+from+actual+developments+due+to+altered+market+and+ economic+conditions+and+therefore+may+lead+to+a+significant+change+in pension+obligations+as+well+as+ the expenses.

At+31 December+2014+the+pension+provisions+amounted+to+kEUR+56 (31 December+2013+kEUR+62).+As+ of 31+December+2012+or+1+January+2012,+no+pension+obligations existed.

For+more+information+see+Section+8.10.

5.7 Deferred)taxes)

Deferred+tax+assets+on+taxable+losses+carried+forward+are+only+recognised up+to+an+expected+taxable+ income+and+only if+their+recoverability seems+adequately+assured+in+the+near+future. A+considerable+ degree+ of+ discretionary+judgement+ is+required+ from+ the+Management+ to+ determine+ the+amount+ of+ deferred+tax+assets+that+can+be+recognised,+based+on+the+expected+timing+and+level+of+income+to+be+ taxed+in+the+future+together+with+future+tax+planning+strategies.

The+Group+carries+forward+domestic corporate+tax+losses+of+kEUR+38,001 (31 December+2013:+kEUR+ 25,559,+31+December+2012:+kEUR 11,338,+1 January+2012:+kEUR+4,807),+domestic+trade tax+losses+of+ kEUR+ 37,374 (31 December+ 2013:+ kEUR 25,238,+ 31+ December+ 2012:+ kEUR+ 11,252,+ 1 January+ 2012:+ kEUR+4,803)+as+well+as+foreign+losses+of+kEUR 224 (31 December+2013:+kEUR+443).+Due+to+the+positive income development+ in+ accordance+ with+ business+ planning+ and+ the+ accumulated+ losses+ carried+ forward,+the+Management+assumes+that+these+losses+carried+forward+can+in fact+be+realised+in+their+ entirety.+The+ domestic+ losses+ carried+ forward+ have+ no+ temporal+ restriction+and+ do+ not+expire.+The+ foreign+losses+carried+ forward+can+only+be+used+within+a+limited+period+of+seven+years.+If+the+actual+ results+deviate+from+these+estimates+by+the+Management,+this+could+have+a+negative+impact+on+the+ net+asset,+financial+and+income position.+Due+to+the+history+of+losses+of+windeln.de+GmbH,+however,+ deferred+ tax assets on+losses+carried+ forward+are+only+ recognised+ to+ the+amount+at+which+deferred+ tax liabilities are+recorded. Further+details+on+deferred+taxes+are+given+under+section+8.16.

5.8 Fair)value)measurement)and)valuation)methods)

Some+of+the+Group's+assets+and+liabilities+are+measured for+the+purposes+of+financial+reporting+at fair+ value.+As+far+as+possible,+the+Group+uses+observable+market+data+to+determine+the+fair+value+of+assets+ and+liabilities.+If+ such+input+parameters+at+Level+1+are+not+available,+ the+ fair+value+is+determined+at+ Levels+2+and+3+using+generally+accepted valuation+methods.+

For+a+ description+ of+ the+ fundamental+input+ factors+and+valuation+methods+used+for+ the+ contingent+ consideration,+see+section+7.+For+the+related+sensitivity+analysis,+see+section+8.7.

For+more+information+with+regards+to+the+fair+value+hierarchy+see+section+10.4.

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 6. Segment)disclosure)

A+business+segment in+the+sense+of+IFRS+8+is+a unit+of+a+business+which+conducts+business+activities+ which produce+financial+income and+expenses,+the+operating results+of+which+are+regularly+reviewed+ by+the+company's+chief+operating+decision+maker+with+regards+to+decisions+on+allocating+resources+to+ this+ sector+ and+ the+ assessment+ of+ profitability and+ for+ which there+ exists+ corresponding+ financial+ information.

For+management+purposes,+the+group+is+organised+into+business+units+based+on+its+different+onlineE shops+since+financial+year+2013+and+has+three+reportable business segments,+as+follows:

• The business segment+"windeln.de"+operates+the+onlineEshop+windeln.de.
• The+business+segment+ "windelbar"+ operates+ the+onlineEshop windelbar.de,+which+ offers+ its+ services+as+part+of+a+free+subscription+to+an+online+shopping+club.
• The+ business+segment+ "windeln.ch"+ operates+ the+ onlineEshops windeln.ch,+ kindertraum.ch+ and+toys.ch.

No+operating+segments+have+been+aggregated+to+form+the+above+reportable+operating+segments.

The+ management+ monitors+ the+ revenues+ and+ adjusted+ operating+ results+ of+ its+ business+ units+ separately+ for+ the+ purpose+ of+ making+ decisions+ about+ resource+ allocation+ and+ performance+ assessment.+Segment+performance+is+evaluated+based+on+profit+or+loss+and+is+measured+consistently+ with+ profit+ or+ loss+ in+ the+ consolidated+ financial+ statements.+ Depreciation,+ amortisation,+ financial+ result,+ income+ taxes+ and+ rental+ expenses+ are+ managed+ on+ a+ Group+ basis+ and+ are+ not+ allocated+ to+ operating+segments.

The+ performance+ measure+ "EBIT+ contribution"+ per+ business+ segment+ consists+ of+ gross+ profit less+ allocated+selling,+distribution+and+administrative+expenses+as+well+as+the+proportional+other+operating+ income+and+expenses.

The+ business+ departments+Human+ Resources,+IT,+ Finance+ as+ well+ as+ the+management+ team+ render+ services+ to+ the+group+ (shared+ services).+These+expenses+are+ not+allocated+ to+ the+ different business segments+and+are+disclosed+in+the+position+"Corporate"+below. Of+the+total+amount+of+kEUR+8,249+(31+ December+ 2013:+ kEUR+ 4,981)+ allocated+ to+ the+ position+ "Corporate"+ an+ amount+ of+ kEUR+ 6,496+ (31+ December+2013:+kEUR+3,839)+respresents+personnel+expenses.

In+ financial+ year+ 2012+ the+ business+ unit+ "Corporate"+ was+ fully+ allocated+ to+ the+ business+ segment+ windeln.de.

Transfer+ prices+ between+ operating+ segments+ are+ on+ an+ arm's+ length+ basis+ in+ a+ manner+ similar+ to+ transactions with+third+parties.

		2014
	windeln.de	windelbar.de	windeln.ch	Other/Elim.	Total
Revenues	88,768	8,780	3,776	0	101,324
EBIT&contribution	1,793	E2,753	E1,850	E665	E3,475
Adjustment*VSOP	123	152	190	5	465
adjusted&EBIT&contribution	1,916	H2,601	H1,660	H665	H3,010
in%	2.2%	529.6%	543.9%		53.0%
Corporate					E8,248
Earnings&before&interest∧&taxes&(EBIT)					H11,723
Financial+result					2,138
Income+taxes					E242
Profit∨&loss&for&the.					H9,827

	windeln.de	windelbar.de	windeln.ch	Other/Elim.	Total
Revenues	45,029	4,090	319	H0	49,438
EBIT+contribution	E4,436	E2,209	E584	E13	H7,242
Adjustment*VSOP	98	5	64	5	162
adjusted&EBIT&contribution	H4,338	H2,209	H520	H13	H7,080
in%	59.6%	554.0%	5163.0%		514.3%
Corporate					E4,981
Earnings&before&interest∧&taxes&(EBIT)					H12,223
Financial+result					E23
Income+taxes					E28
Profit∨&loss&for&the.					H12,274

2013

	windeln.de	windelbar.de	windeln.ch	Other/Elim.	Total
Revenues	21,542	H	H	0	21,542
EBIT&contribution	H7,316	H	H	0	H7,316
Adjustment&VSOP	E	E	E	E	E
adjusted&EBIT&contribution	H7,316	H	H	0	H7,316
in%	534.0%				534.0%
Corporate					E
Earnings&before&interest∧&taxes&(EBIT)					H7,316
Financial+result					23
Income+taxes					E11
Profit∨&loss&for&the.					H7,304

No+individual+customer+accounts+for+more+than+10 % of+the+Group's+total+revenues.

The+revenues by geographic+region+and+type are+shown in+section+9.1.+The+Group's+significant nonE current assets+are+held+by business segment+windeln.de+and+windeln.ch.

7. Group)information)and)business)combinations)

Name	Share+in+equity	ShareEbased+ equity+ (IFRS)+in+kEUR+as+of 31+ December+2014	Purpose+of+the+Company:
UrbanEBrand+ Schweiz+ GmbH,+ Männedorf,+ Switzerland	100%	32	Service+ company of+ the+ Group.
			The+company+was+ founded+by+ means+ of+ a+ founding+ contract+ on+ 21+ December+ 2012+ and+ entered+ into+ the+ Trade+ Register+on+16+January+2013.
windeln.ch+ AG+ (until+ 23 January+ 2014)+ Kindertraum.ch+ AG),+ Uster,+Switzerland+	100%	267	Rendering+ of+ services+ in+ the+ area+ of+ international+ eE commerce. The+company+was+acquired+on+ 12+December+2013.

The+Group's+scope+of+full+consolidation+includes+windeln.de+GmbH+and+the+following+subsidiaries:

The+subsidiaries+are+incorporated+into+the+consolidated+financial+statements+from+the+point+in+time at+ which+ the+Group+assumed+ control+ of+ the+ subsidiary.+They+are+ deconsolidated+at+ the+ time+at+which+ this+control+ends.

The+wholly+ owned subsidiary+ UrbanEBrand+Management+ Ltd.,+Wakefield, Great+ Britain,+ founded+ in+ 2011 with+ an+ equity+ of+ EUR+ 1 is not+ incorporated+ into+ the+ consolidated+ financial+ statements.+ The+ company+ has+ so+ far+ not+ carried+ out+ any+ business+ activities+ and+ will+ not+ be+ incorporated+ into+ the+ consolidated+financial+statements+due+to+its+subordinate+significance.

Business+combinations

No+additional+subsidiaries+were+acquired+in+the+financial+year+2014.

In+the+financial+year+2013,+windeln.de+GmbH+acquired+100%+of+the+shares+in+windeln.ch+AG+(formerly:+ Kindertraum.ch+AG)+as+of+12+December+2013.+In+the+context+of+a+capital+increase+100% of+the+shares+ in+windeln.ch AG (formerly:+Kindertraum.ch+AG)+as+well+as receivables+in+the+form+of two+shareholder loans were+ incorporated+ into+ the+ capital+ reserves+ of+ windeln.de+ GmbH.+ The+ Kindertraum+ business+ consists+ of+ sale of,+ amongst+ others,+ baby+ items+ and+ toys+ under+ the+ internet+ domains+ toys.ch and kindertraum.ch.+ Access+ to+ the+ Swiss+ market+ should+ be+ strengthened+ with+ the+ acquisition+ of+ this+ company.

Kindertraum.ch+ AG+ was+ renamed+ in+ windeln.ch+ AG+ effective+ with+ the+ registration+ in+ the Trade Register+(Handelsregister)+on+23+January+2014+in+order+to+unify,+and+to+strengthen+the+brand.

At+acquisition+date, the+ fair+value+of+ the+identified+assets+and+liabilities+of windeln.ch+AG+ (formerly:+ Kindertraum.ch+AG)+is+as+follows:

kEUR	Fair value at acquisition date
Purchase price
Shares of windeln.de GmbH transferred	2,395
Receivables against existing shareholders transferred	-400
Cash received for transferred share (nominal value)	-5
Fair value of contingent consideration	0
Total consideration transferred	1,990

Fair value of assets and liabilities acquired

Intangible assets	1,827
Fixed assets	148
Contingent consideration	-
Inventories	465
Trade receivables	142
Deferred tax assets	106
Other assets	84
Cash and cash equivalents	4
Pension obligations	-56
Trade payables	-360
Other liabilities	-470
Deferred tax liabilities	-382
Identifiable net assets at fair value	1,508
Goodwill from business combination	482
	1,990
Prepayment for share-based payments	1,434

The+allocation+ of+ the+ purchase+ price+ described+above+ for+windeln.ch+ AG+ (formerly:+ Kindertraum.ch+ AG)+ results+ in+ a+ goodwill.+ Basis for+ this+ goodwill+ are+ the expected+ synergies resulting+ from+ the+ combined+ business+ activities,+ the+ strengthened+ access+ to+ the+ Swiss+ market,+ and+ other+ intangibles which+do+not+meet+the+recognition+criteria.

The+consideration transferred+for+the+acquisition+is+composed of+shares+in+windeln.de+GmbH+and of+a+ contingent+consideration.+Details+regarding+these+purchase+price+components+and+their+fair+value at+ acquisition date are+described+below:

Shares+in+windeln.de+GmbH:

The+ Group+ has+ issued+ 5,568+ new+ shares+ in+ the+ nominal+ value of+ EUR+ 1+ for+ 100% share+ in+ Kindertraum.ch+AG.+The+fair+value+of+these+shares+at+the+acquisition date+amounts to kEUR+3,829 and is+calculated+under+consideration+of+a+company+valuation+carried+out+at+the+end+of+the+financial+year+ 2013+which+resulted+in a+value+of+EUR+767.73+per+share.+Of this+fair+value+an+amount+of+kEUR+1,434+is+ deducted+and+allocated+to+the+shareEbased+payments+part (see+below).

Contingent+consideration

As+ part+ of+ the+ purchase+ agreement+ which was+ closed+ with+ the+ previous+ owners+ of+ windeln.ch+ AG+ (formerly:+Kindertraum.ch+AG)+in+the+financial+year+2013,+a+conditional+consideration component+was+ agreed+upon.+According+to+this,+a+return of+up+to+2,784+shares to+windeln.de+GmbH+(this+amounts+to+ 50% of+ the+ shares+ originally+ issued) by+ the+ former+ owners+ may+ become+ necessary+ under+ certain+ conditions.+The+conditions+of+this+conditional+reimbursement+are+described+in+detail+below:

If+the+cumulated+revenues+and+the+cumulated+EBITDA+of+the+combined+Swiss+business+activities+in+the+ financial+ years+ 2014+ and+ 2015+ do+ not+ reach+ the+ contractually+ defined+ target+ values,+ the+ former+ owners+are+obliged,+at+the+end+of+2015,+to+sell+and+return+a+variable+amount+of+shares+for+a+price+of+ EUR+ 1+ (nominal+ value).+ The+ number+ of+ shares+ to+ be+ returned+ depends+ on+ the+ actual+ deviation+ between+ the+ contractually+ defined+ target+ values+ (cumulated+ revenues+ and+ cumulated+EBITDA)+ and+ the+audited actual+figures.

At+the+time+of+acquisition,+the+fair+value+of the+contingent+consideration+was measured+at+kEUR+0,+as+ the+management+expected+the+achievement+of+the+targets+agreed+upon+and+no+shares+to+be+returned+ based+on+that+expectation.

Fair+ value+ is+ determined+ using+a+ twoEstep process.+This+ involves+ first+measuring+ the+ fair+ value+ of+a+ share+in+windeln.de+GmbH,+ then+ separately+calculating+ the+likely+number+of+ shares+ to+be+ returned,+ before+finally+multiplying+these+two+figures:

E First,+ the+ fair+ value+ of+ the+ individual+ share+ is+ calculated+ using+ a+ Monte+ Carlo+ Simulation+ involving+ the+ strike+price+1+and+ the+ remaining+ term+until+31+December+2015.+Alongside+ the+ strike+price+and+remaining+term,+the+key+input+factors+for+the+relevant+valuation+date+are+the+ current+value+of+the+shares,+their+anticipated+volatility+and+the+riskEfree+interest+rate.+

In+ the+ Monte+ Carlo+ Simulation,+ the+ stochastic+ process+ which+ describes+ the+ market+ price+ performance+is+simulated+with a+large+number+of+repetitions.+This+stochastic+process+is+given+ by+ a+ geometric+ Brownian+ motion+ for+ which+ the+ current+ share+ price+ is+ the+ starting+ price.+ Volatility+is+determined+on+the+basis+of+the+peer+group+average.+The+drift+corresponds+to+the+ riskEfree+ interest+ rate.+ The+ random+ component+ consists+ of+ a+Wiener process+ which+ can+ be+ simulated+ with+ the+ aid+ of+ random numbers.+ For+ a+ sufficiently+ large+ number+ of+ realisations+ (paths)+ of+ the+ corresponding+ geometric+ Brownian+ motion+ obtained+ by+ simulation,+ it+ is+ possible+ to+ make+ reliable+ probability+ statements+ regarding+ interesting+ target+ parameters.+ This+applies+in+particular+to+the+value+of the+option,+i.e.+max(share+price+at+time+of+exercise+E exercise+price,+0).+Provided+there+is+a+sufficiently+large+numbers+of+repetitions,+the+expected+ value+of+this+target+variable+under+the+distribution+simulated+by+Monte+Carlo+asymptotically+

approximates the+ value+ of+ the+ Black+ Scholes+ Mertin+ Formula.+ However,+ it+ is+ possible+ with+ Monte+Carlo+to+make+many+more+statements,+indeed+by+this+means+one+can+make+probability+ statements+about+any+possible+value+of+the+option.+This+means+in+particular+that+degrees+of+ uncertainty+in+relation+to+forecasts+can+be+better+estimated.

E Finally+the+estimated+number+of+shares+to+be+returned+can+be+calculated,+by+estimating+the+ cumulated+ revenue+ and+ EBITDA+ of+ the+ combined+ swiss+ business+ and+ by+ comparing+ these+ estimated+amounts+to+the+targets+agreed+upon.

The+ revenue and+ EBITDA+ forecasting+ method+ is+ based+ on+ an+ autoregressive+ integrated+ moving+average+time+series+model+(ARIMA).+Out+of+the+extensive+class+of+all+ARIMA+models,+ an+ARIMA(0,1,0)+model+ based+ on+ the+Akaike+Information+ Criterion+ (AIC)+ has+ been+ found+ to+ provide+the+best+revenue forecast.+This+corresponds+to+a+random+walk+with+drift.+For+EBITDA+ an+ ARIMA(0,0,0)+model+ was+ used.+ This+ involves+ a+temporally+ constant+ expected+ value+ plus+ random+ noise.+ After+ selecting+ these+ ARIMA+ models+ they+ were+ used+ to+ run+ a+ Monte+ Carlo+ simulation+ of+ the+ associated+ processes+ for+ the+ revenue and+ EBITDA+ in+ order+ to+ thereby+ determine+the+distributions+of+the+target variables.+These+constitute+the+cumulative+revenue and+cumulative+EBITDA.+Each+is+composed+of+both+the+known+and+simulated+figures.

ShareEbased+payments

In+addition,+ the+contingent+consideration+for+one+original+shareholder+employed+in+ the+Group+since+ the+acquisition date is+subject+to+a+reimbursement+obligation+if+this+person should+leave+the+company within+two+years.+This+results+in+a+separate+asset+"prepayment+for+shareEbased+payments" pursuant+ to+IFRS 2 which+is+recognised+as+other+nonEfinancial+asset+and is+allocated+to+administrative+expenses on+a+straight+line+basis+from+January+2014+to+December+2015.+

On+ the+ basis+ of+ the+ Monte+ Carlo+ Simulation+ described+ above,+ the+ fair+ value+ for+ the+ shareEbased+ payments+ was+ calculated+ stochastically+ at+ the+ acquisition date+ in+ the amount+ of kEUR+ 1,434. The+ calculated+amount+of+shareEbased+payments+reduces+the+consideration+transferred+in+the+course+of+ the+acquisition+of+windeln.ch+AG+(formerly:+Kindertraum.ch+AG).

The+ transaction+ costs+ related+ to+ the+acquisition+ of+windeln.ch+AG+ (formerly:+ Kindertraum.ch+AG)+in+ the+amount+of+kEUR+77 were+recorded+in administrative expenses in 2013.

From+ 12+ December+ 2013+ to+ 31+ December+ 2013+ windeln.ch+ AG+ (formerly:+ Kindertraum.ch+ AG)+ contributed+to+the+Group revenues an amount+of+kEUR+185+and+losses+in+the+amount+of+kEUR+57. The+company+was+founded+by+means+of+a+carve+out+shortly+before+the+acquisition+in+November+2013.+ For+the+stub financial+year,+revenues according+to+local+accounting+principles+amounted+to+kEUR+563+ (kCHF+693),+whilst+losses+totalled+kEUR+173+(kCHF+214).

Foundation+of+companies

No+companies+were+founded+in+the+financial+year+2014.

Disposal+of+companies

So+far,+no+companies+have+been+disposed+of.

8. Notes)to)the)consolidated)statement)of)financial)position)

8.1 Intangible)assets)

The+development+of+intangible+assets+is+as+follows:

kEUR

	Goodwill	Software, licences, patents and similar rights	Capitalised development costs	Domains	Customer base	Total
Cost
At 1 January 2014	482	38	1,291	1,806	223	3,841
Changes in group structure	-	-	-	-	-	-
Exchange differences	-	-	-	33	5	38
Additions	-	4	1,048	-	-	1,052
Disposals	-	-	128	-	-	128
At 31 December 2014	482	42	2,211	1,840	228	4,803
Depreciation and impairment
At 1 January 2014	-	22	272	-	-	294
Changes in group structure	-	-	-	-	-	-
Exchange differences	-	-	-	-	-	-
Additions	-	11	461	-	44	516
Additions (impairment)	-	-	79	-	-	79
Disposals	-	-	128	-	-	128
At 31 December 2014	-	33	683	-	44	760
Book value	-	-	-	-	-	-
At 31 December 2013	482	16	1,019	1,806	223	3,547
At 31 December 2014	482	9	1,528	1,840	184	4,043

kEUR	Goodwill	Software, licences, patents and similar rights	Capitalised development costs	Domains	Customer base	Total
Cost
At 1 January 2013	-	118	518	207	-	843
Changes in group structure	482	-	-	1,602	224	2,299
Exchange differences	-	-	-	-8	-1	-
Additions	-	5	831	6	-	841
Disposals	-	84	58	-	-	142
At 31 December 2013	482	38	1,291	1,806	223	3,841
Depreciation and impairment
At 1 January 2013	-	48	46	-	-	94
Changes in group structure	-	-	-	-	-	-
Exchange differences	-	-	-	-	-	-
Additions	-	12	259	-	-	271
Additions (impairment)	-	46	24	-	-	70
Disposals	-	84	58	-	-	142
At 31 December 2013	-	22	272	-	-	294
Book value	-	-	-	-	-	-
At 31 December 2012	-	70	472	207	-	749
At 31 December 2013	482	16	1,019	1,806	223	3,547

kEUR

		Software, licences,	Capitalised
		patents and	development		Customer
	Goodwill	similar rights	costs	Domains	base	Total
Cost
At 1 January 2012	-	103	-	160	-	264
Changes in group structure	-	-	-	-	-	-
Exchange differences	-	-	-	-	-	-
Additions	-	14	518	46	-	579
Disposals	-	-	-	-	-	-
At 31 December 2012	-	118	518	207	-	843
Depreciation and impairment
At 1 January 2012	-	23	-	-	-	23
Changes in group structure	-	-	-	-	-	-
Exchange differences	-	-	-	-	-	-
Additions	-	25	46	-	-	71
Additions (impairment)	-	-	-	-	-	-
Disposals	-	-	-	-	-	-
At 31 December 2012	-	48	46	-	-	94
Book value	-	-	-	-	-	-
At 1 January 2012	-	80	-	160	-	241
At 31 December 2012	-	70	472	207	-	749

The+ intangible+ assets+ include,+ along+ development+ costs+ for+ selfEdeveloped software,+ internet+ domains,+software,+licenses,+brand+rights,+a+customer+base,+and+goodwill.

The+ amortisation of development+ costs+ recorded+ in+ profit+ or loss+ during+ the+ financial year+ 2014+ amounts to+kEUR+461 (financial+year+2013:+kEUR+259,+financial+year+2012:+kEUR+46).+In+the+financial year+2014,+kEUR+1,048 of+development+costs+at+windeln.de+GmbH+were capitalised+(2013:+kEUR+831,+ 2012:+kEUR+518).+Research+costs+have+not been+capitalised.

Amortisation+of intangible+assets+for+the+financial year+2014+were+recorded+in+cost+of+sales at+a+total+ of+kEUR+1 (2013:+kEUR+0,+2012:+kEUR+0),+in+selling+and+distribution expenses+at+kEUR+592 (2013:+kEUR+ 341,+2012:+kEUR+71),+and+in+administrative expenses+at+kEUR+2 (2013:+kEUR+0,+2012:+kEUR+0).

Own+work capitalised+in+the+financial year+amounted to kEUR+1,528 (2013:+kEUR+1,019,+2012:+kEUR+ 472)+and+consists+only+of development+costs+for+2014 and+prior+years.

The+group+ holds intangible+assets+with+ indefinite+ useful+ lives+ in+ form+ of domains+ in+ the+amount+ of+ kEUR+1,840 (31 December+ 2013:+ kEUR+1,806,+ 31+December+ 2012:+ kEUR+207,+ 1 January+ 2012:+ kEUR+ 160)+ as+ well+ as in+ form+ of goodwill+ amounting+ to+ kEUR+ 482 (31 December+ 2013:+ kEUR+ 482,+ 31 December+2012:+kEUR+E,+1+January+2012:+kEUR E).

For+ intangible+ assets,+ there+ exist+ no+ restrictions+ on+ rights+ of+ disposal.+ No+ intangible+ assets+ were+ pledged+as+collateral+for+liabilities.

Indications+ of+ an+ impairment pursuant+ to+ IAS+ 36+ were+ not+ present+ at+ the+ date+ of+ these+ financial+ statements.

The+ impairment+ test+ performed+ for+ goodwill,+ for+ development+ projects+ not+ yet+ finished,+ and+ for domains+did+not+result+in a need+for+recording+an+impairment+loss,+since+the+values+in+use+were above+ the+respective+book+values.

Notes&concerning&the&annual&impairment&tests&

The+goodwill+of+kEUR+482+acquired+in+a+business+combination,+as+well+as+acquired+domains+with+an+ indefinite+useful+life+in+the+amount+of+kEUR+1,724,+were+allocated+for+impairment+testing+purposes+to+ the+cashEgenerating+unit+(CGU)+windeln.ch+which+is+also+a+reportable+segment.

The+Group+conducted+its+annual+impairment+test+as+of+31+December+2014.+The+recoverable+amount+ of+ CGU+ windeln.ch+ as+ of+ 31+ December+ 2014+ was+ calculated+ on+ the+ basis+ of+ the+ value+ in+ use,+ duly+ taking+into+account+the+cash+flow+forecasts+based+on+the+business+plan+approved+by+management+for+ a+ fiveEyear+period.+The+discount+rate+before+ taxes+applied+ to+ the+cash+ flow+ forecasts+is+26.1%.+Cash+ flows+ after+ the+ fiveEyear+ period+ have+ been+ extrapolated+ applying+ a+ growth+ rate+ of+ 1%.+ The+ test+ showed+ that+ the+value+in+use+exceeded+ the+book+value+of+ the+CGU+windeln.ch.+Accordingly,+on+ the+ basis+of+our+knowledge+and expectations+as+of+31+December+2014+no+impairment+potential+arises+for+ the+goodwill+acquired+in a business+combination+and+for+internet+domains+with+indefinite+useful+lives.

For+impairment+ testing+ purposes+ software+ development+ projects+in+ progress+were+allocated+ to+ the+ CGU+ windeln.de+ and+ windelbar.+ The+ recoverable+ amount+ of+ those+ software+ projects+ as+ of 31+ December+ 2014+was+ calculated+ on+ the+ basis+ of+ the+ value+ in+ use,+ duly+ taking+ into+account+ the+ cash+ flow+forecasts+based+on+the+business+plan+approved+by+management+for+a+fiveEyear+period.+The+preE

tax+ discount+ rates+ applied+ are+ 52.3%+ and+ 41.2%.+ The+ impairment+ test+ revealed+ no+ impairment+ potential+for+software+development+projects+in+progress+as+of+31+December+2014.

Internet+ domains+ allocated+ to+ the+ CGU+ windeln.de+ were+ also+ tested+ for+ impairment.+ As+ of+ 31+ December+2014+no+impairment+potential+was+identified.

Estimates+used+to+measure+recoverable+amounts

Applying+ the+ discounted+ cash+ flow+ approach,+ growth+ rates+ and+ discount+ rates+ are+ the+ major+ assumptions+to+determine+the+value+in+use.+Revenue+growth over+the+course+of+the+business+plan+was+ estimated+considering+experience from+previous+years.+Basis+ for+the+growth+rates+is+the+anticipated+ development+of+business+with+existing+and+new+customers. The+applied+discount+rates+reflect+market+ risks+of+the+CGUs.

The+calculation+of+the+appropriate+discount+rates+accounts+for+factors+specific to+the+company+and+its+ business+ units.+ It+ is+ based+ on+ industry+ specific+ weighted+ average+ costs+ of+ capital+ (WACC).+ This+ discount+rate+was+further+adjusted+in+order+to+account+for+market+expectations+concerning+and+risks+ associated+with+the+CGU+windeln.ch+and+which+are+not+reflected+in+the+cash+flows.

The+major+assumptions+for+the+calculation+of+value+in+use+for+the+software+development+projects+are+ discount+ rates+ and+ generated+ value.+ The+ latter+ comprises+ in+ one+ case+ an+ increase+ in+ efficiency+ in+ human+ resources;+ in+ a+ second+ case+ it+ comprises+ the+ revenue+ growth+ with+ customers+ using+mobile+ interfaces.+

Sensitivity+analysis+of+applied+estimates

Management+ growth+expectations,+ as+ applied+ in+ the+ business+ plan+ for+ the+ next+ five+ years,+ assume+ revenue+ growth+ rates+ ranging+ from+ 17.5%+ to+ 117.7%.+ Beyond+ the+ five+ year+ forecast+ period+ a+ long+ term+growth+rate+of+1%+was+assumed.

No+plausible+variation+in+ the+long+ term+growth+ rate+would+ result+in+an+impairment. A+ risk+premium+ incorporated+in+the+costs+of+capital+(WACC)+reflects+the+risk+of+not+achieving+the+forecast+revenues.

An+increase+of+the+pre+tax+discount+rate+above+30.5%+would+result+in+an+impairment+for+the+goodwill.

An+ increase+ of+ the+ pre+ tax+ discount+ rate+ above+ 66.0%+ and+ 57.3%+ respectively+ would+ result+ in+ impairments+of+the+software+development+projects.

8.2 Fixed)assets)

The+development+of+fixed+assets+is+as+follows:

kEUR

	Other equipment	thereof finance-leases
Cost
At 1 January 2014	622	74
Changes in group structure	-	-
Exchange differences	2	-
Additions	239	67
Disposals	-	-
At 31 December 2014	863	140
Depreciation and impairment
At 1 January 2014	192	8
Changes in group structure	-	-
Exchange differences	-	-
Additions	191	21
Additions (impairment)	-	-
Disposals	-	-
At 31 December 2014	383	30
Book value	-	-
At 31 December 2013	430	65
At 31 December 2014	480	111

kEUR

	Other equipment	thereof finance-leases
Cost
At 1 January 2013	199	3
Changes in group structure	147	-
Exchange differences	-	-
Additions	277	70
Disposals	1	-
At 31 December 2013	622	74
Depreciation and impairment
At 1 January 2013	87	0
Changes in group structure	-	-
Exchange differences	-	-
Additions	106	8
Additions (impairment)	-	-
Disposals	1	-
At 31 December 2013	192	8
Book value	-	-
At 31 December 2012	112	3
At 31 December 2013	430	65

kEUR

	Other equipment	thereof finance-leases
Cost
At 1 January 2012	55	-
Changes in group structure	-	-
Exchange differences	-	-
Additions	145	3
Disposals	-	-
At 31 December 2012	199	3
Depreciation and impairment
At 1 January 2012	26	-
Changes in group structure	-	-
Exchange differences	-	-
Additions	62	0
Additions (impairment)	-	-
Disposals	-	-
At 31 December 2012	87	0
Book value	-	-
At 1 January 2012	29	-

The+fixed+assets exclusively+comprise+operating+and+business+equipment.

The+fixed+assets contain+capitalised+finance+leases (fixtures+and+furnishings)+amounting+to+kEUR+111 (31 December+2013:+kEUR+65,+31+December+2012:+kEUR+3,+1+January+2012:+kEUR+E)+which+are+to+be+ allocated+to+the+Group+as+financial+owner+due+to+the+nature+of+the+leasing+contracts+present.+

Indications+ of+ an+ impairment+ pursuant+ to+ IAS+ 36+ were+ not+ present+ at+ the+ date+ of+ these+ financial+ statements.

The+depreciation+of+fixed+assets+with+a+total+value+of+kEUR+191 (2013:+kEUR+106,+2012:+kEUR+62)+are+ recorded+ in+ cost+ of+ sales+ in+ the+ amount+ of+ kEUR+ 8 (2013:+ kEUR+ 0,+ 2012:+ kEUR+ 3),+ in+ selling+ and+ distribution+ expenses+ in+ the+ amount+ of kEUR+ 150 (2013:+ kEUR+ 0,+ 2012:+ kEUR+ 42) and in+ administrative+expenses+in+the+amount+of+kEUR+33 (2013:+kEUR+106,+2012:+kEUR+18k).

8.3 Other)nonTcurrent)assets)

The+other+nonEcurrent+financial+assets+are+composed+of+the+following:

kEUR	31 Dec 2014	31 Dec 2013	31 Dec 2012	1 Jan 2012
Prepayment for share-based payments	-	717	-	-
Non-financial assets	-	717	-	-
Investments	0	0	0	0
Contingent consideration	-	0	-	-
Financial assets	0	0	0	0
Other non-current assets	0	717	0	0

The+ wholly+ owned subsidiary+ UrbanEBrand+Management+ Ltd,+Wakefield,+UK, was+ founded+ in+ 2011+ with+equity+of+EUR+1+and+has+so+far+not+carried+out+any+business+activities.+The+shares+are+categorised+ as+availableEforEsale+financial+assets+in+the+sense+of IAS+39+and+carried at+cost+(EUR+1),+since+no+active+ market+is+present+with+publicly+available+market+prices+and+ the+ fair+value+cannot+be+determined+in+ any+other+way.+There+is+no+intention+to+sell+the+shares.

For+ information+ on+ the+ development+ of+ the+ provisory reimbursement+ and+ prepayment+ of+ shareE based+payments,+see+section 8.7.

8.4 Inventories)

Inventories+consist+of+the+following:

kEUR	31 Dec 2014	31 Dec 2013	31 Dec 2012	1 Jan 2012
Merchandise	10,754	7,260	3,242	1,539
Inventories	10,754	7,260	3,242	1,539

The+increase+in+inventories+in+the+financial+year+2014+by+kEUR+3,494 was+the+result+of+the+increased+ volume+of+business+and+the+accompanying+need+for+a+more+comprehensive+inventory.

As+of 31+December+2014,+due+to+a+decreased+realisable value,+an+allowance+ for+merchandise in+the+ amount+of kEUR+601 (31+December+2013:+kEUR+308,+31 December+2012:+kEUR+136,+1 January+2012:+ kEUR+0) was+recorded.

Inventories in+the+amount+of+kEUR+6,190 (31+December+2013:+kEUR+6,587,+31+December+2012:+kEUR+ 1,546,+1 January+2012:+kEUR+E)+were+assigned+as collateral+for the+credit+line.

8.5 Prepayments)

Prepayments+comprise+only+of prepayments+for+future+deliveries+of+inventories.

8.6 Trade)receivables)

Trade+receivables are+primarily+receivables+from customers+of+windeln.de+GmbH.

All+trade+receivables are+due+within one+year,+and+are+not+interest+bearing.+The+accounts receivable+ are+in+general+due+immediately,+whilst+for+sales on+credit+a+payment+period+of+up+to+7+days is+granted.+ There+are+no+limitations+of+any+kind+on+rights+of+disposal.

An+analysis+of+the+maturity+structure+of+the+trade+accounts+receivable+is+as+follows:

			Past due but not impaired
kEUR	Acquisition cost	Neither past due nor impaired	< 30 days	30-90 days	> 90 days	Past due and impaired
31 Dec 2014	2,049	684	820	-	18	527
31 Dec 2013	1,350	350	743	26	-	231
31 Dec 2012	1,102	234	721	-	-	147
1 Jan 2012	211	42	135	9	-	25

As+of 31+December+2014,+due+to+credit+risks,+an+allowance was+recorded+in+the+amount of+kEUR+325 (31 December+ 2013:+ kEUR+ 179,+ 31 December+ 2012:+ kEUR+ 96,+ 1 January+ 2012:+ kEUR+ 21).+ When+ calculating+ the+ allowance for+ trade+ receivables,+ the+ company+ uses+ aging+ bands+ to+ which+ the+ receivables+ are+ allocated+ based+ on+ their+ age.+ Past+ due+ maturity+ bands+ are+ impaired+ using+ a+ percentage+based+on+historical+loss+rates+and+based+on+the+payment method+used.+For+neither+past+ due+nor+impaired+receivables+there+is+no indication+of+impairment.

The+development+of+the+allowance is+as+follows:

kEUR	2014	2013	2012
At 1 January	179	96	21
Additions	325	179	96
Utilised	179	96	21
At 31 December	325	179	96

The+losses recorded+for+uncollectable+accounts+receivable+in+the+financial+year+2014+amount+to+kEUR+ 432 (2013:+kEUR+324,+2012:+kEUR+340).

In+the+ financial+year+2014,+accounts+receivable+overdue+and+impaired+with+a+nominal+value+of+kEUR+ 440 (2013:+kEUR+404,+2012:+kEUR+387)+were+sold+and+derecognised.+From+this,+the+Group+achieved+a+ net+income of+kEUR+150 (2013:+kEUR+114,+2012:+kEUR+145). In+addition+neither+past+due+nor+impaired+ receivables+ with+ a+ nominal+ value+ of+ kEUR+ 7,099 (2013:+ kEUR+ E,+ 2012:+ kEUR+ E)+ were+ sold+ and+ derecognised.+From+this,+the+Group+achieved+a+net+income of+kEUR 6,918 (2013:+kEUR+E,+2012:+kEUR+E ).

In+the+context+of+these sales of+accounts+receivable,+the+Group+retains+no+material+obligations. These include,+above+all,+the+rendering+of+customer+services+with+regards+to+goods sold,+such+as+answering+ general+ customer+ queries+ and+ handling+ returns+ and+ refunds.+ Risks+ in+ connection+ with+ these+ obligations+ remaining+within+ the+Group+are+accounted+ for+ in+ the consolidated financial statements regardless+of+the+sale+of+accounts+receivable.

8.7 Other)current)assets)

The+other+current+assets+consist+of+the+following:

kEUR	31 Dec 2014	31 Dec 2013	31 Dec 2012	1 Jan 2012
VAT receivables	797	656	179	175
Prepayment for share-based payments	717	717	-	-
Claims for return of goods	300	176	73	20
Deferred expenses	168	11	3	11
Other	6	-	-	0
Non-financial assets	1,988	1,560	255	206
Contingent consideration	2,211	-	-	-
Accrued advertising subsidies	1,158	1,166	745	38
Creditors with debit balances	303	135	116	-
Other	267	144	27	9
Financial assets	3,939	1,445	888	47
Other current assets	5,927	3,005	1,143	253

The+claims+for+return+of+goods+relate+to+estimated+return+figures+after+the+balance+sheet+date.

The+items+contained+in+deferred+expenses+ relate+ to+payments+made for+services+not+ rendered+until+ after+the+balance+sheet+date.

The+ creditors+ with+ debit+ balances consist+ of reimbursement+ claims+ against+ suppliers+ and service+ providers,+e.g.+due+to+overpayment+or+underdelivery.

Accrued+ advertising+ subsidies+ relate+ to+ claims+ against+ suppliers+ due+ to+ advertising+ or+ marketing+ activities+carried+out+in+the+financial+year+as+well+as+bonuses+dependent+on+purchase+volume.

All+other+nonEcurrent assets+are+due+within one+year after+the+balance+sheet+date.

The+ other+ nonEfinancial+ asset+ "Prepayment+for shareEbased+payments"+ is+writtenEoff on+ a+ straightE line+basis+over+the+vesting+period+of+two+years.+The+depreciation+is+recorded+as personnel+expenses+in+ administrative+expenses.

kEUR	31 Dec 2014	31 Dec 2013
Non-current	-	717
Current	717	717
kEUR	2014	2013
Personnel expenses	717	-

The+ financial+ asset+ "Contingent+ consideration"+ is+measured+ at+ fair+ value.+ Changes+ to+ fair+ value+ are+ recorded+as financial+income+or+financial+expenses.

If+the+cumulated+revenues+and+the+cumulated+EBITDA+of+the+combined+Swiss+business+activities+in+the+ financial+ years+ 2014+ and+ 2015+ do+ not+ reach+ the+ contractually+ defined+ target+ values,+ the+ former+ owners+ are+ obliged,+ at+ the+ end+ of+ 2015,+ to+ sell+ and+ return+ a+ variable+ amount+ of+ shares.+ As+ of 31+ December+ 2014+ the+ company+ expects+ an+ amount+ of+ 929+ shares+ to+ be+ returned+ based+ on+ current+ revenue+ forecasts (31+ December+ 2013:+ 0).+ A variation of the+ forecast+ of+ 10%+ would+ lead+ to+ an+ increase+or+decrease+of+the+fair+value+of+the+contingent+consideration+in+the+amount+of+kEUR+442. As+ of 31+December+2013+an+increase+of+the+forecast+of+10%+would+not+lead+to+a+change+in+fair+value+of+ the+ contingent+ consideration.+ A+ decrease+ of+ the+ forecast+ of+ 10%+ would+ lead+ to+ an+ increase+ in+ fair+ value+of+the+contingent+consideration+in+the+amount+of+kEUR+178.+

The+calculation+of+the+fair+value+of+the+contingent+consideration+as+of 31+December+2014+is+based+on+ a+ share+ price+ of+ the+ shares+expected+ to+ be+ returned.+An+increase+ or+ decrease+ of+ 10%+ of+ this+ share+ price+ would+ lead+ to+ an+ increase+ or+ decrease+ of+ the+ fair+ value+ in+ the+ amount+ of+ kEUR+ 221 (31+ December+2013:+kEUR+0),+respectively.

kEUR	31 Dec 2014	31 Dec 2013
Non-current	-	-
Current	2,211	-

kEUR	2014	2013
Financial income	2,211	-

8.8 Cash)and)cash)equivalents)

kEUR	31 Dec 2014	31 Dec 2013	31 Dec 2012	1 Jan 2012

Cash on hand	17	4	-	-
Cash at banks and cash equivalents	33,813	263	411	7,517
Total	33,830	267	411	7,517

Interest+is+paid+on+cash+at+banks using variable+interest+rates+for+daily+rescindable+credit.

8.9 Equity)

The+issued+capital+of+the+parent+company+was+increased+in+the+financial+year+2014+by+a+total+of+kEUR+ 39 (2013:+kEUR+23,+2012:+kEUR+1)+and+has+been+paid+in+full.+In+total,+the+Company+has+issued+162,557+ shares+(31 December+2013:+123,742+,+31+December+2012:+100,900+,+1 January+2012:+100,408+)+with+a+ nominal+value+of+EUR+1.

The+share+premium contains+premium+payments+of+the+shareholders+(premiums+in+connection+with financing+rounds).+In+the+financial+year+2014,+a share+premium of+kEUR+41,593 (2013:+kEUR+12,644,+ 2012:+ kEUR+150) was+ paid.+Transaction+ costs+in+ connection+with equity+ transactions+are+accounted+ for+ as a+ deduction+ from+ equity,+ net+ of+ tax.+ In+ the+ financial+ year+ 2014+ these+ transaction+ costs+ amounted to kEUR+E269 (2013:+kEUR+E50,+2012:+kEUR+E22). In+addition,+shareEbased+payments+in+the+ amount+of+kEUR+1,434 increased+the+share+premium in+accordance+with+IFRS+2.+Also+see+section+7+for+ further+details.

The+ accumulated+ loss is+ the+ result+ of+ losses+ carried+ forward+ from+ the+ previous+ reporting+ period+as+ well+as+from+the+loss+for+the+period 2014.

For+information+on+the+development+of+equity,+we+refer+to+the+consolidated+statement+of+changes+in+ equity.

8.10 Defined)benefit)obligations)and)other)accrued)employee)benefits)

a) Defined)benefit)obligations)

The+Group+has defined+benefit+pension+plans for+its+employees+in+Switzerland.

These+ retirement+ plans+ are+ based+ on+ the+ two+ pillars+ of+ the+ state+ retirement+ plan+ and+ are+ performanceEoriented+(funded+insurance).

The+retirement+services+in+these+plans+for+windeln.ch+AG+and+UrbanEBrand+Schweiz+GmbH+are+based+ on+ a+ defined+ benefit+ plan+ with+ a+ guaranteed+ minimum+ interest+ rate+ and+ fixed+ conversion+ rates,+ benefits+in+cases+of+death+and+invalidity+are+defined+as+percentages+of+the+insured+salary.

The+retirement+plan+guarantees+benefits+which+exceed+the+legal+minimum+benefits+according+to+the+ Federal+ Old+ Age+ Insurance+ Law+ of+ Switzerland+ (BVG).+ This+ law+ stipulates,+ amongst+ others,+ the+ following+framework+conditions:+Annual+salary+up+to+CHF+84,240+(as+of 2013/2014)+must+be+insured.+ The+contributions+to+pension+benefits+are+ageEdependent+and+increase+with+age+ from+7% to+18% of+ the+ salary+ insured.+ The+ conversion+ rate+ for pension+ funds amounts+ to+ at+ least+ 6.8% at+ standard+ retirement+age+(65+for+men+and+64+for+women).

The+retirement+plan+must+be+completely+funded+on+the+basis+of+a+statistical+valuation+pursuant+to+the+ stipulations+of+the+BVG.+In+the+case+of+underfunding,+the+retirement+fund+must+take+remedial+action,+ such+as+making+additional+employee+and+employer+contributions+or+reducing+the+benefits.

The+ Group+ joined the+ collective+ fund+ "Vita" for+ the+ purpose+ of+ funding+ retirement+ benefits.+ The+ retirement+ fund+ has+ a+ separate legal+ entity.+ The+ retirement+ fund+ is+ responsible+ for+ managing+ the+ retirement+plan.+The+foundation+board ("Stiftungsrat")+consists+of+an+even+number of+representatives of+the+employer+and+employees, who+are+elected+by+the+associated+firms.

The+ retirement+ fund+ has+ passed+ regulations which+ define,+ in+ particular,+ the+ asset+ management+ policies.

The+plan+usually+exposes+the+Group+to+the+following+risks:

• Investment+risk

The+ present+ value+ of+ the+ defined+ benefit obligation+ from+ this+ plan+ is+ calculated+ using+ a+ discount+ rate+ which+ is defined+ on+ the+ basis+ of+ the+ returns+ of+ firstErank,+ fixedEinterest+ company+bonds.+Provided+the+returns+ from+this+plan+asset+are+lower+than+the+interest+rate,+ this+will+not+lead+to+the+plan+being+underfunded.

• Interest+rate+risk

A+decline+in+ the+interest+rate of+bonds will+lead+ to+increased+plan+obligations,+although+ this+ will+be+compensated+for+in+part+by+an+increased+return+on fixedEinterest+debt+instruments.+

• Longevity+risk

The+present+value+of+the+defined+benefit obligation+from+the+plan+is+calculated+on+the+basis+of+ the+best+possible+estimate+of+the+likelihood+that+the+covered+employee+will+die+both+during+ his/her+ working+ life+ as+ well+ as+ after+ the+ termination+ thereof.+ An+ increase+ in+ the+ covered+ employee's+life+expectancy+will+lead+to+an+increased+plan+obligation.

• Salary+risk

The+present+value+of+the+defined+benefit obligation+from+the+plan+is+calculated+on+the+basis+of+ future+salaries+of+the+covered+employees.+Hence,+raises+for+the+covered+employee+lead+to+a+ increased+plan+obligation.

The+Group+is+exposed+to+a+possible+concentration+risk+due+to+the+fact+that+the+plan+asset+is+invested+in+ various+classes+of+investment.

As+of 31+December+2014,+the+provision+for+pensions+recorded+by+windeln.ch+AG+amounted+to+kEUR+ 56 (31 December+2013:+kEUR+62).

The+employees+of+UrbanEBrand+Schweiz+GmbH+have,+as+of 31+December+2013,+been+transferred+into+ windeln.ch+AG+and+the+pension+obligations+have+been+transferred+accordingly.

No+pension+obligations+existed+as+of 31+December+2012 and+1+January+2012.

The+present+value+of+the+defined+benefit obligation+can+be+reconciled to+the+net+liability as+follows:

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 Net*liability*of*defined*benefit obligation

kEUR	31 Dec 2014	31 Dec 2013
Defined benefit obligation	514	306
Fair value of plan assets	458	244
Funded status / Net liability of defined benefit obligation	56	62

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 The+net+liability+of+the+defined+benefit obligation+has+developed+as+follows:+

kEUR	Defined benefit obligation	Fair value of plan assets	Total
At 1 January 2013	-	-	-
Current service cost	16	-	16
Interest expense /(income)	0	0	0
Transferred obligations	292	226	66
Remeasurements
Return on plan assets (excluding interest income)	-	1	-1
Effect of changes in financial assumptions	-7	-	-7
Effect of experience adjustments	-3	-	-3
Other	0	0	0
Contributions:	-	-	-
Employer	-	10	-10
Participants	10	10	-
Insurance premiums	-2	-2	-0
Administrative expenses	-	-1	1
At 31 December 2013	306	244	62

kEUR	Defined benefit obligation	Fair value of plan assets	Total
At 1 January 2014	306	244	62
Current service cost	38	-	38
Interest expense /(income)	7	6	1
Remeasurements
Return on plan assets (excluding interest income)	-	31	-31
Effect of changes in financial assumptions	31	-	31
Effect of experience adjustments	-14	-	-14
Other	8	7	1
Contributions:	-	-	-
Employer	-	36	-36
Participants	36	36	-
Other contributions	111	111	-
Insurance premiums	-9	-9	-
Administrative expenses	-	-4	4
At 31 December 2014	514	458	56

The+losses+from+the+changes+in+financial+assumptions+in+financial+year+2014+are+caused+by+a+decrease+ of+the+discount+rate+from+2.25%+to+1.00%

Defined+benefit+expenses are+expected+in+the+amount+of kEUR+47 for+the+financial+year+2015.

The+average+duration+of+the+defined+benefit obligation+as+of 31+December+2014+was+21.6+years.

Assumptions

The+fair+value+of+defined+benefit+and similar+obligations+is+assessed+annually+using+actuarial+methods.+ The+ following+ assumptions+ formed+ the+ basis+ for+ calculating+ actuarial+ obligations+ for+ the+ pension plans:

In %	31 Dec 2014	31 Dec 2013
Discount rate	1.00%	2.25%
Rate of salary increase	1.50%	1.50%
Rate for the projection of savings capital	1.00%	2.25%
Rate of pension increase	0.00%	0.00%

The+ likelihood+ of+ an+ employee+ retiring,+ dying+ or+ becoming+ disabled+ was+ calculated+ according+ to+ specific+age+and+gender+(pursuant+to+the+BVG+2010,+Generation+Life+Tables+E Generationentafeln).

Sensitivity*analysis

The+ sensitivity+ analysis+ presented+ below+ is+ based+ on+ the+ variation+ of+ one+ assumption+ at+ a+ time,+ whereas the+ other+ assumptions+ remain+ unaffected,+ i.e.+ possible+ correlation+ effects+ between+ the+ individual+assumptions+are+not+taken+into+account.

The+sensitivity+of+the+defined+benefit obligation+to+essential+actuarial+assumptions+is+as+follows:

Defined benefit obligation in kEUR	Change in actuarial assumptions	Effect on defined benefit obligation
		Defined benefit obligation	Change in %
Discount rate	Increase of 0,50%	489	-5.0%
	Decrease of 0,50%	547	6.3%
Rate of salary increase	Increase of 0,50%	518	0.7%
	Decrease of 0,50%	511	-0.6%
Rate of pension increase	Increase of 0,50%	527	2.5%
	Decrease of 0,50%	503	-2.2%
Mortality	Increase of 1 year	517	0.6%
	Decrease of 1 year	511	-0.6%

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 Composition*of*plan*asset

The+plan asset+is+composed+as+follows:

	kEUR	Share in %
Equity instruments	122	26.6%
Debt instruments	218	47.6%
Real estate	48	10.5%
Other	64	14.1%
Cash and cash-equivalents	6	1.2%
Total plan assets	458
thereof valued at quoted prices	410

b) ShareTbased)payments)

windeln.de+ GmbH+ has+ so+ far+ issued+ five+ virtual+ stock+ option+ programmes+ (VSOP)+ to+ motivate+ and+ retain important+employees+(fullEtime employees and+freelancers).+As+of+31+December+2014,+a+total+ of+nine+employees+have+been+assigned+virtual+options.+This+option+programme+gives+these+employees+ the+opportunity+to+take+part+in+future+increases+in+the+company+value+of+the+business.+The+company+ grants+those+entitled+to options+the+right+to+receive+cash+if+certain+vesting+conditions+are+satisfied.

The+virtual+stock+options are+granted in+48+tranches+over+a+period+of+four+years+from+a+date of+issue set+ by+ the+ Company.+ In+ the+ case+ one+ of+ the+ vesting+ conditions+ is+ satisfied,+ the+ options+ of+ four+ employees+are+immediately+deemed+as+fully+vested+(accelerated+vesting),+provided+the+beneficiary+is+ currently employed+by+the+company.

Options+ not+ yet+ fully+ vested+ expire+ if+ the+ service+ or+ working+ relationship+ ends+ before+ a+ vesting+ condition+is+met.+Fully+vested+options+expire+if+the+service+or+working+relationship+ends+before+such+ an+event+due+to+termination.+The+options+expire+at+latest+fifteen+years+after+the+date+of+issue.

Successful+execution+of+one+of+the+following+transactions+is+defined+as+a+vesting+condition:

• The+sale+or+transfer+of+all+shares+of+the+Company+("Share+Deal+exit").
• The+sale+or+transfer+of+all+assets+of the+Company+("Asset+Deal+exit").
• The+listing+of+the+company+on+a stock+exchange+("IPO+exit").

The+cashEsettlement+of+a+beneficiary is+calculated for+each+option+granted+as+the+difference+between+ the+proceeds+from+one+of+the+exit events per+share+and+the+strike+price+of+the+option.+In+total, 8,515+ options+were+issued+as+of+31+December+2014+(31+December+2013:+8,015,+31+December+2012:+5,515,+ 1 January+2012:+2,503)+as+part+of+five+option+programmes.+As+of 31+December+2014,+2013+or+2012,+no+ virtual+options+were+fully+vested.

The+virtual+stock+option+programmes issued+are+accounted+for+as+cash+settled+shareEbased+payment+ transactions+in+accordance+with+IFRS+2.

As+of 31+December+ 2014,+ the+fair+value+of+ the+liability+from+virtual+stock+options+amounts+ to+kEUR+ 6,349 (31 December+2013:+kEUR+2,930,+31+December+2012:+kEUR+1,271,+1 January+2012:+kEUR+314).+ The+obligation+is+recognised+as+a+nonEcurrent+liability.

The+expenses+recorded+for+shareEbased+payments in+ the+ financial+year+2014+amount+to+kEUR+3,419 (2013:+kEUR+1,659,+2012:+kEUR+957).

The+ obligation+ arising+ from+ the+ virtual+ stock+ option+ programme+ is+ calculated+ using+ a+ Monte+ Carlo+ Simulation.

In+the+Monte+Carlo+Simulation,+the+stochastic+process+which+describes+the+market+price+performance+ is+ simulated+ with+ a+ large+ number+ of+ repetitions.+ This+ stochastic+ process+ is+ given+ by+ a+ geometric+ Brownian+motion+ for+which+ the+current+share+price+is+ the+starting+price.+Volatility+is+determined+on+ the+basis+of+the+peer+group+average.+The+drift+corresponds+to+the+riskEfree+interest+rate.+The+random+ component+consists+of+a+Wiener process+which+can+be+simulated+with+ the+aid+of+ random numbers.+ For+ a+ sufficiently+ large+ number+ of+ realisations+ (paths)+ of+ the+ corresponding+ geometric+ Brownian+ motion+ obtained+ by+ simulation,+ it+ is+ possible+ to+ make+ reliable+ probability+ statements regarding+ interesting+ target+ parameters.+ This+ applies+ in+ particular+ to+ the+ value+ of+ the+ option,+ i.e.+max(share+ price+ at+ time+ of+ exercise+ E exercise+ price,+ 0).+ Provided+ there+ is+ a+ sufficiently+ large+ numbers+ of+ repetitions,+ the+ expected+ value+ of+ this+ target variable+ under+ the+ distribution+ simulated+ by Monte+ Carlo asymptotically+ approximates+the+ value+ of+ the+ Black+ Scholes+ Merton+ Formula.+ However,+ it+ is+ possible+ with+ Monte+ Carlo+ to+ make+ many+ more+ statements,+ indeed+ by+ this+ means+ one+ can+ make+ probability+statements+about+any+possible+value+of+the+option.+This+means+in+particular+that+degrees+ of+uncertainty+in+relation+to+forecasts+can+be+better+estimated.

	31&Dec&2014	31&Dec&2013	31&Dec&2012	1&Jan&2012
Expected volatility (%)	10.54%	10.80%	11.30%	13.30%
Risk-free rate (%)	0.00%	0.19%	0.04%	0.57%
Anticipated maturity of options (years)	1.25	2.25	3.25	4.25

The+following+input+parameters+were+used in+the+Monte+Carlo+Simulation:

In+addition,+a+shareEbased+compensation+agreement+was+entered+in+the+context+of the+acquisition+of windeln.ch+AG.+The+valuation+model+is+described+in+section 7.

Since+ the+ beneficiary+ has+ the obligation+ to+return+ a+ certain+ number+ of+ shares+ in+ case the+ person leaves the+Group+within+two+years,+an+other+nonEfinancial+asset+was+recognised.+As+of 31+December+ 2014,+the+book+value+of+the+asset+amounts+to+kEUR+717+and+at+31+December+2013+at+kEUR+1,434,+see+ sections 8.3+and+8.7.

8.11 Provisions)

	Current		Non-current
	Loyalty
kEUR	points	Other	Share-based payments	Pensions	Total
At 1 January 2012	43	-	314	-	357
Additions	125	-	957	-	1,082
Release	-	-	-	-	-
Utilisation	43	-	-	-	43
At 31 December 2012	125	-	1,271	-	1,396
At 1 January 2013	125	-	1,271	-	1,396
Additions	720	110	1,659	62	2,551
Release	-	-	-	-	-
Utilisation	80	-	-	-	80
At 31 December 2013	765	110	2,930	62	3,867
At 1 January 2014	765	110	2,930	62	3,867
Additions	696	-	3,419	-	4,115
Release	25	-	-	5	30
Utilisation	190	110	-	-	300
At 31 December 2014	1,246	-	6,349	57	7,652

The+provision+for+loyalty+points (not+yet+redeemed+and+still+redeemable+according+to+the+terms+and+ conditions) was+calculated+at+the+respective+balance+sheet+date+based+on+historic+redemption+rates+ and+the+fair+value+of+one loyalty+point. The+increase+is+mainly+caused+by the+growth+of+the+Company.

The+other+provisions+comprise+provisions+related+to+legal+disputes+with+employees.

For+all+current+provisions+a+cash+outflow+is+expected+within+the+subsequent+financial+year.

8.12 Financial)liabilities)

kEUR	31 Dec 2014	31 Dec 2013	31 Dec 2012	1 Jan 2012
Credit facility	1,475	1,906	-	-
Other financial liabilities	30	-	-	-
Finance-lease liabilities	27	14	1	-
Current financial liabilities	1,532	1,920	1	-
Finance-lease liabilities	85	51	2	-
Non-current financial liabilities	85	51	2	-
Financial liabilities	1,617	1,971	3	-

Financial+liabilites+consist+of+the+following:

Since+2012,+the+Group+has+had+access+to+a+credit+facility of+up+to+kEUR+5,000+with+a+maturity+pending+ further+notice+and+therefore+is+classified+as current financial+liability.+The+line+of+credit is+based+on+the+ value+of+inventories on+stock,+reduced+by+ownership+reservations and+a risk+deduction.+

As+of 31+December+2014+the+credit+ facility+was+drawn+in+ the+amount+of+kEUR+1,475 (31+December+ 2013:+kEUR+1,906,+31+December+2012:+kEUR+E,+1+January+2012:+kEUR+E).+In+addition+guarantees+were+ drawn under+the+credit+facility+in+the+amount+of kEUR+72+(31+December+2013:+kEUR 72,+31+December+ 2012:+kEUR+21,+1+January+2012:+kEUR+E). The interest+rate+has+been+fixed+upon+further+notice+and+a+ fixed+ commission+ rate+ for+ guarantees+ has+ also+ been+ agreed.+ As+ common,+ the+ credit+ facility is+ collateralised+by certain+defined warehouses as+well+as+by+current+and+future+cash deposits at+banks+ involved.+In+addition+an+equity+covenant was+agreed.

The+other+financial+liabilities+on+31+December+2014+totalling+kEUR+30 arise+from+bank+overdrafts.

Financial+liabilities+include+liabilities+from+financing+leases,+which+are+recognised+at+the+present value+ of+the+minimum+future+lease+payments.+Liabilities+with+a+remaining+term+of+more+than one+year+are+ recognised+under+nonEcurrent+liabilities.

8.13 Trade)payables)

Trade+payables+become+due+within+one+year+and+do+not+bear+interest.+The+item+also+includes+all+trade+ payables+not+invoiced+as+of the+balance+sheet+date.+They+generally+become+due+for+payment+within+0+ to+60+days.

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 8.14 Deferred)revenue)

Deferred+revenue contains+customer+credits+from+prepayments+as+well+as from+sold+vouchers.

8.15 Other)current)liabilities)

The+other+current+liabilities+as of 31+December+2014+are+composed+as+follows:

kEUR	31 Dec 2014	31 Dec 2013	31 Dec 2012	1 Jan 2012
Social security obligations	178	117	53	13
VAT payables	148	296	9	-
Deferred income	55	46	-	-
Other	2	4	-	-
Non-financial liabilities	383	463	62	13
Other personnel-related liabilities	454	185	82	18
Bonus	383	277	298	29
Refund obligations from returns	365	206	75	16
Customers with credit balances	250	74	25	4
Audit services and tax advice	77	43	19	8
Other	100	1	-	-
Financial liabilities	1,629	786	499	75
Other current liabilities	2,012	1,249	561	89

The+other+current liabilities+have+a+maturity+of+up+to+one+year+and+are+not+charged+interest.+

Credit+balances+of+customers are+related+to overpayments+or+returned+goods.+Pampers+savings+plans+ which+have+already+been+sold+to customers+but+are+not+yet+used+are+recorded+as+deferred+income.

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 8.16 Income)taxes)and)deferred)taxes)

The+significant+components+of+income+tax+expenses for+the+financial+years+2014,+2013+and+2012+are+ composed+as+follows:

kEUR	2014	2013	2012
Actual income taxes
Current income taxes	2	6	-
Subtotal	2	6	-
Deferred taxes
From temporary differences	85	203	-
From released deferred taxes on losses carried forward	201	24	11
From losses carried forward	-46	-205	-
Subtotal	240	22	11
Total	242	28	11

In+ calculating+ current+ taxes+ in+ Germany+ a+ uniform+ corporation+ tax+ rate+ based+ on+ distributed+ and+ retained+ profits+incl.+ the+ solidary+ surcharge+of+ 15.83 %is+applied+ (2013:+15.83 %,+ 2012:+ 15.83 %). In+ addition+to+corporation+tax,+trade+tax+is+levied+on+profits+generated+in+Germany.+Given+that+trade+tax+ is+ a+ nonEdeductible+ business+ expense,+ an+ average+ trade+ tax+ rate+ of+ 17.15 %+ (2013:+ 17.15 %,+ 2012:+ 17.15 %)+has+been+applied,+so+ that+ the+ total+domestic+ tax+ rate+amounts+ to+32.98 %+ (2013:+32.98 %,+ 2012:+ 32.98 %).+ In+ calculating+ deferred+ tax+ assets and+ liabilities+ the+ tax+ rates+ valid+ at+ the+ time+ of+ realising+ the+asset+or+ repaying+ the+liability are+applied.+windeln.de+GmbH's+deferred+ tax+assets and+ liabilities+were+measured+on+the+basis+of+the+total+tax+rate+of+32.98 % (31 December+2013:+32.98 %,+ 31+December+2012:+32.98 %,+1+January+2012:+32.98 %).

For+the+calculation+of+the+current+taxes+as+well+as+deferred+tax+assets+and+liabilities+ for+Switzerland,+ tax+rates+between+20.02 %+and+20.67 %+were+applied.

The+ reconciliation+ between+ income+ tax+ expenses and+ the+ product+ of+ the+ recognised+ profit+ of+ the+ period+and+the+applicable+Group+tax+rate+for+the+2014,+2013+and+2012+financial+years+is+as+follows:

kEUR	2014	2013	2012
Profit before taxes	-9,585	-12,246	-7,293
Expected income tax expense	-3,159	-4,035	-2,405
Unrecognised deferred tax assets on losses carried forward	3,985	4,029	2,151
Unrecognised deferred tax assets on temporary differences	-	-	261
Other non-deductable operating expenses	294	42	15
Non-taxable income	-729	-	-
Deferred taxes recorded through equity	-177	-13	-11
Other deviations	28	5	0
Effective income tax expense	242	28	11

Expected+income+tax+rate+(in+%)	32.96%	32.95%	32.98%
Effective+income+tax+rate+(in+%)	E2.53%	E0.23%	E0.15%

The+ nonEtaxable income+ in+ 2014+ relates+ to the+ contingent+ consideration.+ For+ details+ of+ this+ see+ section+8.7.

The+expected+Group+ tax+ rate+ for+a+ given+ year+ is+ determined+ by+averaging+ out+ of+ the+ individual+ tax+ rates+to+which+all+the+companies+included+in+the+consolidated+financial+statements+are+subject.

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 Deferred+income+tax+at+the+balance+sheet+dates is+as+follows:

kEUR	31 Dec 2014	31 Dec 2013	31 Dec 2012	1 Jan 2012
Deferred tax assets
Costs recognised in equity	201	24	11	-
Losses carried forward	12,470	8,467	3,724	1,584
Defined benefit obligations and other accrued employee benefits	9	13	419	104
Trade receivables	9	27	13	1
Other current provisions	-	42	41	0
Other current non-financial liabilities	-	15	-	-
Inventories	-	-	81	15
Other	0	9	6	-
Subtotal	12,689	8,597	4,295	1,704
Deferred tax liabilities
Intangible assets	882	716	156	-
Other	-	9	24	-
Subtotal	882	725	180	-
After netting:
Deferred tax assets (net)	12,129	8,144	4,115	1,704
Deferred tax liabilities (net)	322	273	-	-
Thereof recognised in statement of financial position (deferred tax assets)	-	-	-	-
Thereof recognised in statement of financial position (deferred tax liabilities)	322	273	-	-

In+ total,+ the+ Group+ has+ domestic+ corporation+ taxable+ losses+ carried+ forward amounting+ to+ kEUR+ 38,001 (31 December+ 2013:+ kEUR+ 25,559,+ 31 December+ 2012:+ kEUR+ 11,338,+ 1+ January+ 2012;+ kEUR+ 4,807),+domestic+ trade+ tax+loss+carryforwards+of+kEUR+37,374 (31 December+2013:+kEUR 25,238,+31+ December+2012:+kEUR+11,252,+1 January+2012:+kEUR+4,803)+as+well+as+ foreign+loss+carryforwards+of+ kEUR+224 (31 December+2013:+kEUR+443).

As+ the+Company+has+no+history+of+profits,+domestic+losses+carried+ forward were+only recognised+as+ deferred+tax+assets+up+to+the+amount+of+the+recognised+deferred+tax+liabilities.+On+31 December+2014+ deferred+ tax+ assets+ from+ losses+ carried+ forward+ totalling+ kEUR+ 12.129 (31 December+ 2013:+ kEUR 8,144,+31 December+2012:+kEUR 3,735,+1 January 2012:+kEUR 1,584) were+not+recognised.+The+ losses carried+forward are+available+for+use+indefinitely.

On+ 31+ December+ 2014,+ deferred+ tax+ assets+ of+ kEUR+ 47+ were+ recognised+ on+ foreign+ losses+ carried+ forward+(31+December+2013:+kEUR+94).+In+each+year+these+were+offset+against+deferred+tax+liabilities.

No+deferred+tax+liabilities+were+recognised+for+temporary+differences+related+to+shares+in+subsidiaries. In+ case+ of+ recognition+ there+ would+ be+ a+ deferred+ tax+ liability+ of+ kEUR+ 52 as+ of+ December+ 31+ 2014+ (31. December+2013:+kEUR+56).

9. Notes)to)the)consolidated)statement)of)profit)and)loss)

9.1 Revenues)

Revenues+by+type:

kEUR	2014	2013	2012
Revenues from sale of goods	100,375	49,357	21,494
Revenues from other services	949	81	48
Revenues	101,324	49,438	21,542

The+ Group's+ revenues+ stem mainly from+ the+ sale+ of+ items+ for+ babies+ and+ toddlers in+ Germany,+ Switzerland+and+China.+In+ the+past+ three+ financial+years+ the+Group+companies+were+able+to+achieve+ significant+ growth+ in+ revenues+ in+ all+ target+ countries. In+ particular exports+ to+ China+ contributed+ significantly to+the accelerated+growth+from+the+financial+year+2013+onwards.

The+Group+also+earns+other+revenues from+advertising+cost+subsidies+which+are+paid+as+consideration+ for+services+rendered.+This+is+mainly+related+to flyers+and+online+advertisements+(banners).

Revenues by+geographic+region:

kEUR	2014	2013	2012
DACH	44,040	23,981	14,397
China	55,666	24,734	7,079
Other / rest of Europe	1,618	723	66
Revenues	101,324	49,438	21,542

9.2 Cost)of)sales)

kEUR	2014	2013	2012
Cost of goods sold	77,203	38,772	17,337
Personnel expenses	590	281	124
Depreciation and amortisation	9	-	3
Other cost of sales	67	53	12
Cost of sales	77,869	39,106	17,476

Cost+ of+ sales mainly+ includes+ cost+ of goods sold,+ personnel expenses+ as+ well+ as+ depreciation+ and+ amortisation.+Cost+ of+ sales in+ the+ financial+ year+ 2014+ in+ comparison+ to+ those+ in+ the+ financial+ years+ 2013+ and+ 2012,+ in+ light+ of+ the+ significant+ growth+ of+ the+ company,+ have+ risen+ significantly+ and+ are+ developing+at+a+slightly+slower+rate+than+the+revenues+due+to+improved+delivery+conditions.

9.3 Selling)and)distribution)expenses)

kEUR	2014	2013	2012
Logistics	8,511	5,131	2,255
Personnel expenses	6,212	3,859	1,495
Marketing	5,208	4,117	3,003
Rental expenses	2,600	1,989	844
Payment processing	2,513	858	322
Depreciation and amortisation	744	308	113
Losses on trade receivables / allowances	587	397	415
Other selling and distribution expenses	293	479	110
Selling and distribution expenses	26,668	17,138	8,557

Selling+ and+ distribution+ expenses+ essentially+ contain+ the+ expenses+ for+ personnel,+ marketing+ and+ logistics+ as+ well+ as+ for+ depreciation+ and+ amortisation.+ The+ significant+ increase+ in+ selling+ and+ distribution+costs+compared+to+the+previous+years+is+due+to+the+significant+growth+of+the+Group.

Rental+expense+include+warehouse+rental+expenses+in+the+amount+of+kEUR+2,045+(2013:+kEUR+1,734,+ 2012:+kEUR+781)+and+rental+expenses+ for+office+space+in+the+amount+of+kEUR+555+ (2013:+kEUR+255,+ 2012:+kEUR+63).

9.4 Administrative)expenses)

kEUR	2014	2013	2012
Personnel expenses	6,101	3,492	1,650
Freelancer	1,293	979	726
Legal and consulting expenses	340	182	72
IT environment	221	66	43
Recruiting	176	0	-
Travel expenses	131	72	41
Rental expenses	90	63	19
Audit	64	42	20
Depreciation and amortisation	32	106	18
Other administrative expenses	230	400	284
Administrative expenses	8,678	5,402	2,873

The+administrative+expenses+mainly+consist+of+expenses+for+personnel,+legal+and+consulting+services,+ rent and+depreciation+and+amortisation.+The+significant+increase+in+administrative+costs+compared+to+ the+ previous+ years+ is+ connected+ with+ the+ further+ establishment+ of+ structures+ and+ resources+ in+ the+ course+of+increased+company+growth.

9.5 Other)operating)income)and)expenses)

kEUR	2014	2013	2012
Income from subletting contracts	175	16	-
Foreign exchange income	63	2	-
Other	29	7	48
Other operating income	267	25	48
Losses from disposal of non-current assets	-	34	-
Foreign exchange expenses	99	6	-
Other	0	0	-
Other operating expenses	99	40	-

Income+and+expenditure+ from+changes+in+ the+exchange+rate+contain,+in+essence,+profit+or+loss+ from+ changes+ to+ exchange+ rates+ between+ the+ time+ the+ foreign+ currency+ receivables+ and+ liabilities+ arose+ and+the+time+they+were+paid.

9.6 Financial)result)

kEUR	2014	2013	2012
Interest and other income	5	5	24
Income from change in fair value of derivatives	2,218	-	-
Financial income	2,223	5	24
Interest and other expenses	59	26	1
Financing costs from finance-leases	5	2	0
Other	21	-	-
Financial expenses	85	28	1
Financial result	2,138	-23	23

The income+ from+ change+in+fair+value+of+derivatives+in+ the+ financial+year+ 2014+ relates+ solely+ to+the+ contingent+consideration,+see+section+8.7.

Financial+expenses+mainly+ consist+ of interest+expenses+resulting+ from+ credit facilities+and+expenses+ related+to+finance+lease+contracts.

9.7 Personnel)expenses)

kEUR	2014	2013	2012
Wages and salaries	7,996	5,395	2,218
Share-based payments	3,650	1,410	714
Social security expenses	1,256	827	337
Personnel expenses	12,902	7,633	3,269

In+the+financial+year+2014,+the+Group+employed+an+average+of+234+employees+(2013:+148+,+2012:+41+)+ as+well+as+102+working+students+(2013:+96+,+2012:+58+)+and+by+that+continues its+growth+as+in+previous+ years.

Social security+expenses amount+to+kEUR+712 (2013:+kEUR+464,+2012:+kEUR+164).

In+ the+ past,+ the+ Company+ has+ issued+ virtual+ stock+ options+ shareEbased+ payment components+ to+ various+employees,+see+section 8.10.

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 10. Financial)risk)management)and)financial)instruments)

10.1 Financial)risk)factors)

Due+to+its+business+activities,+the+Group+is+exposed+to+various+financial+risks+(the+market+risk+resulting+ from+currency+risks+and+interest+risks,+the+credit+risk,+and+the+liquidity+risk).

The+Group's+risk+management+is+focused+on+the+unpredictability+of+the+development+on+the+financial+ markets+and+aims+to+minimise+potentially+negative+effects+on+the+financial+position+of+the+Group.

Risk+management+is+carried+out+by+the+central+finance+department+according+to+guidelines+set+out+by+ the Management.+The+Group's+finance+department+identifies+and+assesses+financial+risks+in+close+coE operation+with+the+Group's+operative+units.+The+Management+provides+both+the+principles+for+crossE divisional+ risk+ management+ and+ guidelines+ for+ specific+ risks,+such+ as+ exposure+ to+ foreign+ currency+ risks,+ interest+ and+ credit+ risks,+ the+ use+ of+ derivative+ and+ nonEderivative+ financial+ instruments,+ and+ investments+of+liquidity+surpluses.

The+significant+financial+liabilities+used+by+the+Group+incorporate+interestEbearing+financial+liabilities,+ trade+ accounts+ payable+ and+ other+ liabilities.+ The+ primary+ purpose+ of+ these+ financial+ liabilities+ is+ to+ finance+ the+ Group's+ business+ activities+ and+ retention+ of+ these+ activities.+ The+ Group+ has+ access+ to+ trade+accounts+receivable+and+other+receivables,+as+well+as+currency+and+currency+equivalents,+which+ result+directly+from+its+business+activities+as+well+as+from+payments+made+by+the+shareholders.

So+far+the+Group+has+refrained+from+using+derivative+financial+instruments+to+hedge+certain+risks.

a) Market)risk)

The+market+ risk+ is+ understood+ as+ the+ risk+ that+ the+ fair+ value+ or+ the+ future+ cash+ flow+ of+ a+ financial+ instrument+ fluctuates+ due+ to+ changes+ in+ the+ market+ prices.+ Market+ risks+ include+ interest+ risks,+ currency+risks+and+other+price+risks.

Currency*risk

The+currency+risk+can+be+split+into+two+types+E translation+risk+and+transaction+risk.

The+translation+risk+describes+the+risk+from+changes+to+the+balance sheet and+income+statement+items+ of+ a+ subsidiary+ due+ to+ changes+ to+ the+ exchange+ rates+ when+ converting+ local+ individual+ financial+ statements+into+Group's+presentation currency.+The+changes+caused+by+currency+ fluctuations+when+ translating+balance+sheet+items+are+recognised in+equity.+The+windeln.de+Group+is+currently+exposed+ to+such+a+risk+with+two+subsidiaries,+though+this+risk+is+minimal+due+to+the+size+of+these+companies.+ There+is+correspondingly+no+hedging+of+this+risk.

The+transaction+risk+is+the+risk+that+the+value+of+future+foreign+currency+payments+may+change+due+to+ exchange+ rate fluctuations.+ The+ Group+ trades+ internationally+ and+ is+ subsequently+ exposed+ to+ a+ foreign+currency+risk,+which+is+based+on+changes+to+the+exchange+rate+of+various+foreign+currencies,+ primarily+that+of+the+Swiss+Franc+(CHF).+The+Group+is+increasingly+attempting+to+limit+the+CHF+foreign+ currency+risk+through+soEcalled+natural+hedging,+i.e.+local+product+purchases+in+CHF+as+well+as+limiting+ the+ sale+ of+ goods+ to+ Swiss+ customers+ in+ CHF.+ Furthermore,+ the+ windeln.de+ Group+ is+ carrying+ out+ purchases+in+currently+minor+amounts+in+other+foreign+currencies+such+as+the+British+Pound+(GBP)+or+

the+ US+ Dollar+ (USD).+ The+ Group+ monitors+ the+ volume+ of+ these+ purchases+ through+ regular+ assessments.+Sales,+including+to+Chinese+customers,+take+place+only+in+EUR+and+CHF.

To+ reflect+ market+ risks,+ IFRS+ 7+ requires+ sensitivity+ analyses+ that+ demonstrate+ the+ effects+ of+ hypothetical+ changes+ of+ relevant+ risk+ variables+ on+ the+ profit+ for+ the+ period+ and+ the+ equity.+ The+ following+ observation+ is+ oneEdimensional+ and+ does+ not+ take+ into+ account+ the+ effect+ of+ taxes.+ The+ table+shows+the+positive+and+negative+effects,+if+the+Euro+had+depreciated+or+appreciated+by+10 %+in+ value+in+comparison+to+the+displayed+currencies,+provided+all+other+variables+had+remained+constant.+ Here,+ currency+ profits+ and+ losses+ from+ trade+ accounts+ payable+ based+ on+ foreign+ currency+exert+ an+ influence+on+the+Group's+profit,+which+has+an+equal+effect+on+equity.+Apart+from+the+Group's+profit,+ there+exist+no+other+effects+on+equity+resulting+from+changes+in+exchange+rates.

Currency	1 EUR = 1 CU FC Rate per 31 Dec 2014	Effect on group profit and loss 2014 at + 10 % kEUR	Effect on group profit and loss 2014 at - 10 % kEUR
CHF	1.2024	1	-2
GBP	0.7789	1	-2
USD	1.2141	5	-6

The+risk+for+the+Group+from+exchange+rate+fluctuations+for all+other+currencies+not presented here+is+ insignificant.

Since+ foreign+ exchange+ transactions+ for+ hedging+ cash+ flows+ and+ net+ investments+ in+ foreign+ subsidiaries+is+not+concluded,+there+exist+no+effects+on+equity+on+the+basis+of+the+sensitivity+analysis.

Interest*rate*risk

The+interest+rate+risk+includes+the+influence+of+positive+and+negative+changes+to+interest+rates+on+the+ profit,+ equity,+ or+ cash+ flow+ in+ the+ current+ or+ a+ future+ reporting+ period.+ Interest+ rate+ risks+ from+ financial+ instruments+ can+ arise+ within+ the+ windeln.de+ Group+ mainly+ in+ connection+ with+ financial+ liabilities.

The+ parent+ company+ has+ incurred+ an+ overdraft+ facility+ with+ a+ fixed interest+ rate+ and+ is+ therefore+ currently+ not+ subject+ to+ any+ risks+ from+ interest+ rate+ changes+ with+ regards+ to+ financial+ liabilities.+ A+ change+in+the+market+risk+at+reporting+date+by+100+BP,+would+have+no+effect on+the+Group+profit+or+ equity.

b) Credit)risk)

The+credit+risk,+also+known+as+risk+of+default,+is+the+risk+that+a+business+partner+will+not+fulfil+his/her+ obligations+in+the+framework+of+a+financial+instrument+or+customer+contract+and+that+this+will+lead+to+ a+ financial+ loss.+ The+extent+ of+ this+ credit+ risk+ for+ the+ windeln.de+Group+ corresponds+ to+ the+ sum+ of+ trade+receivables,+as+well+as+other+financial+assets+and+cash+or+cash+equivalents.+The+maximum+credit+ risk+ in+ case+ of+ a+ counterparty+ defaulting+ corresponds+ for+ all+ classes+ of+ financial+ asset+ to+ the+ book+

value+on+the+balance+sheet+date+in+each+case.+There+do+not+exist+any+significant+concentration+risks+ for+the+windeln.de+Group.

Risks+of+default+will+arise+ for+ the+windeln.de+Group+mainly+ from+ trade+ receivables+ from customers.+ Credit+ limits+ are+ set+ for+ all+ customers+ based+ on+ internal+ risk+ classification+ guidelines.+ Outstanding+ receivables+ from+ customers+ are+ monitored+ regularly+ and+ put+ through+ a+ threeEstep+ collection+ procedure.+ In+ order+ to+ reduce+ the+ credit+ risk,+ collective+ allowance+ is+ recorded,+ taking+ into+ consideration+the+age+structure+of+the+receivables.+Overdue+and+unsuccessfully+collected+receivables+ are+sold+at+a+fixed+rate+and+the+remaining+uncollectible+amount+is+recorded+through+profit+and+loss.

In+ addition,+ there+ exists+ a+ risk+ of+ default+ for+ cash+ and+ cash+ equivalents to+ the+ effect+ that+ financial+ institutions+can+no+longer+ fulfil+ their+obligations.+This+ risk+of+default+is+confined+by+carrying+out+ this+ investment+at+various+banking+institutions+with+good+ratings.

c) Liquidity)risk)

The+liquidity+risk+includes+the+risk+that+the+Group+is+not+in+the+position+to+settle+its+assumed+financial+ liabilities+upon+their+maturity.+This+is+why+a+significant+aim+of+the+liquidity+management+is+to+ensure+ that+payment+is+possible+at+all+times.+The+Group+constantly+monitors+the+risk+of+liquidity+shortfalls+by+ using+a+liquidity+planning+tool.+This+takes+account+of+payments+in+and+out+of+the+financial+assets+and+ financial+liabilities+as+well+as+expected+cash+flows+from+business+activities.+The+cash+flow+predictions+ are+prepared+at+Group+level.

The+Group's+aim+is+to+maintain+a+balance+between+the+continuous+covering+of+the+required+financial+ resources+and+to+ensure+flexibility+by+using+a credit facility.+The+Group+uses+cash+pooling+techniques+ for+effective+liquidity+management.+Possibly+remaining+shortEterm+liquidity+peaks+are+balanced+out+by+ using+credit facilities.+At+the+balance+sheet+date,+there+were+available+credit+limits+of+kEUR+2,580 (31+ December+ 2013:+ kEUR+ 2,414;+ 31+ December+ 2012:+ kEUR+ 1,010;+ 1+ January+ 2012:+ kEUR+ E)+ at+ two+ independent+banking+institutions.+The+Group+is+therefore+currently+not+subject+to+any+liquidity+risks.

The+following+table+shows+the+Group's+financial+liabilities+according+to+class+of+maturity,+based+on+the+ remaining+maturity+at+ the+balance+sheet+date+in+each+case+and+ related+ to+ the+contractually+agreed,+ nonEdiscounted+cash+flows.+Financial+liabilities+payable+at+any+time+are+always+to+be+allocated+to+the+ earliest+ possible+ time+ of+ payment.+Variable+interest+ payments+ from+ the+ financial+instruments+ have,+ where+applicable,+been+calculated+on+the+basis+of+the+last+interest+rate+fixed+before+the+balance+sheet+ date+in+each+case.

kEUR	Up to 3 Months	3 Months up to 1 year	Above 1 year
At 31 December 2014	12,356	27	106
Financial liabilities	1,514	27	106
Trade payables	8,830	-	-
Other liabilities	2,012	-	-
At 31 December 2013	8,380	13	58
Financial liabilities	1,911	13	58
Trade payables	5,219	-	-
Other liabilities	1,250	-	-
At 31 December 2012	3,689	1	3
Financial liabilities	1	1	3
Trade payables	3,127	-	-
Other liabilities	561	-	-
At 1 January 2012	925	-	-
Financial liabilities	-	-	-
Trade payables	837	-	-
Other liabilities	88	-	-

10.2 Capital)management)

The+aims+of+the+Group+with+regards+to+capital+management+lie+essentially+in+maintaining+and+ensuring+ an+optimum+capital+structure+to+continue+financing+the+growth+plan+and+the+longEterm+management+ of+the+company's+value.+Here,+particular+focus+is+put+on+the+reduction+of+capital+costs,+the+generation+ of+liquid+ funds+and+ the+active+management+ of+ the+ net+working+assets,+as+well+as+ on+ compliance+ to+ financial+covenants.

The+ Company+ is+ not+ subject+ to+ any+ statutory+ capital+ requirements.+ External+ minimum+ capital+ requirements+arise+from+the+financial+covenants+of+the+credit+facility,+see+section+8.12.

The+Group+manages+its+capital+structure+on+the+basis+of+various+figures,+such+as+the+equity+ratio,+and+ makes+ adjustments+ where+ appropriate,+ taking+ into+ account+ changes+ to+ the+ general+ state+ of+ the+ economy.+Just+as+in+previous+years,+the+Group's+strategy+for+the+year+2014+consisted+of+maintaining+ the+equity+ratio+at+a+minimum+of+25%.+At+the+end+of+the+financial+year+2014,+the+Group's+equity+ratio+ amounted+to+60.7% following+18.5% in+the+previous+year+(31 December+2012:+19.1%,+1+January+2012:+ 86.5%).

kEUR	31 Dec 2014	31 Dec 2013	31 Dec 2012	1 Jan 2012
Equity	34,621	3,041	1,274	8,449
Total Equity and Liabilities	57,044	16,420	6,678	9,772
Equity ratio in %	60.7%	18.5%	19.1%	86.5%

10.3 Additional)disclosures)on)financial)instruments)

The+ following+ table+ shows+ book+ values+ and+ fair+ values+ of+ all+ financial+ instruments+ recorded+ in+ the+ consolidated+ financial+ statements+ and+ how+ the+ assets+ and+ liabilities+ or+ parts+ of+ the+totals+ of+ each+ category are+classified into+the+valuation+categories+according+to+IAS+39+or+IAS+17:

Measurement acc. to IAS 39

kEUR	Category acc. to IAS 39	Book value 31 Dec 2014	At cost	Fair value (through equity)	Fair value (through p&l)	Measurement acc. to IAS 17	Fair Value 31 Dec 2014
Financial assets
Other non-current financial assets	afs	0	0	-	-	-	0
Trade receivables	LaR	1,725	1,725	-	-	-	1,725
Other current financial assets	LaR / afs / hft	3,939	1,728	-	2,211	-	3,939
Cash and cash equivalents	LaR	33,830	33,830	-	-	-	33,830
Financial liabilities
Non-current finance-lease liabilities	n.a.	85	-	-	-	85	85
Trade payables	FLAC	8,830	8,830	-	-	-	8,830
Current financial liabilities	FLAC	1,532	1,532	-	-	-	1,532
Current finance-lease liabilities	n.a.	26	-	-	-	26	26
Other current financial liabilities	FLAC	1,629	1,629	-	-	-	1,629
Totals per category acc. to IAS 39
Available for sale (afs)	afs	4	4	-	-	-	4
Financial asset held for trading (hft)	hft	2,211	-	-	2,211	-	2,211
Loans and receivables (LaR)	LaR	37,279	37,279	-	-	-	37,279
Financial liabilities measured at amortised cost (FLAC)	FLAC	11,991	11,991	-	-	-	11,991

Measurement acc. to IAS 39

kEUR	Category acc. to IAS 39	Book value 31 Dec 2013	At cost	Fair value (through equity)	Fair value (through p&l)	Measurement acc. to IAS 17	Fair Value 31 Dec 2013
Financial assets
Other non-current financial assets	afs	0	0	-	-	-	0
Trade receivables	LaR	1,171	1,171	-	-	-	1,171
Other current financial assets	LaR / afs / hft	1,445	1,445	-	-	-	1,445
Cash and cash equivalents	LaR	267	267	-	-	-	267
Financial liabilities
Non-current finance-lease liabilities	n.a.	51	-	-	-	51	51
Trade payables	FLAC	5,219	5,219	-	-	-	5,219
Current financial liabilities	FLAC	1,920	1,920	-	-	-	1,920
Current finance-lease liabilities	n.a.	14	-	-	-	14	14
Other current financial liabilities	FLAC	786	786	-	-	-	786
Totals per category acc. to IAS 39
Available for sale (afs)	afs	4	4	-	-	-	4
Financial asset held for trading (hft)	hft	-	-	-	-	-	-
Loans and receivables (LaR)	LaR	2,879	2,879	-	-	-	2,879
Financial liabilities measured at amortised cost (FLAC)	FLAC	7,926	7,926	-	-	-	7,926

Measurement acc. to IAS 39

kEUR	Category acc. to IAS 39	Book value 31 Dec 2012	At cost	Fair value (through equity)	Fair value (through p&l)	Measurement acc. to IAS 17	Fair Value 31 Dec 2012
Financial assets
Other non-current financial assets	afs	0	0	-	-	-	0
Trade receivables	LaR	1,005	1,005	-	-	-	1,005
Other current financial assets	LaR / afs	888	888	-	-	-	888
Cash and cash equivalents	LaR	411	411	-	-	-	411
Financial liabilities
Non-current finance-lease liabilities	n.a.	2	-	-	-	2	2
Trade payables	FLAC	3,127	3,127	-	-	-	3,127
Current financial liabilities	FLAC	1	1	-	-	-	1
Current finance-lease liabilities	n.a.	1	-	-	-	1	1
Other current financial liabilities	FLAC	499	499	-	-	-	499
Totals per category acc. to IAS 39
Available for sale (afs)	afs	1	1	-	-	-	1
Loans and receivables (LaR)	LaR	2,303	2,303	-	-	-	2,303
Financial liabilities measured at amortised cost (FLAC)	FLAC	3,627	3,627	-	-	-	3,627

Due+to+the+short+maturity+of+the+cash+and+cash+equivalents,+trade+receivables+and+payables+as+well+as+ other+current+financial+assets+and+other+current+financial+liabilities,+it+is+assumed+for+these+items,+that+ the+fair+values+correspond+with+the+book+values.

In+ other+ nonEcurrent+ financial+ assets,+ the+ investment+ in+ the+ UrbanEBrand+ Management+ Ltd.+ is+ included+with+a+value of+EUR+1+ (as+in+the+previous+years+with+EUR+1).+In+other+nonEcurrent+ financial+ assets,+members'+shares+in+a+cooperative+in+the+amount+of+kEUR+4+are+included+(31+December+2013:+

kEUR+ 4;+ 31+ December+ 2012:+ kEUR+ 2).+ Both+ financial+ assets+ are+ classified+ as+ "available+ for+ sale".+ Because+the+fair+value+cannot+be+reliably+measured+they+are+measured "at+cost".

The+ fair+ values+ of+ the+ current+ financial+ liabilities+ correspond+ with+ their+ book+ values,+ since+ the+ contractually+ agreed+ interest+ rates+ do+ not+ deviate+significantly+ from+ the+ marketEstandard+ interest+ rates.

The+following+tables+show+the+net+results+of+financial+assets+and+financial+liabilities+per+fiscal+year.

			From subsequent measurement	through profit and loss
kEUR	Interest income	Interest expense	At fair value	Foreign exchange	Impairment	through equity from subsequent measurement	through profit and loss from derecognition	Net result
Available for sale (afs)	-	-	-	-	-	-	-	-
Financial asset held for trading (hft)	-	-	2,211	-	-	-	-	2,211
Loans and receivables (LaR)	5	-	-	-34	-756	-	-471	- 1,256
Financial liabilities measured at amortised cost (FLAC)	-	-65	-	3	-	-	-	-61
Total for fiscal year 2014	5	-65	2,211	-31	-756	-	-471	894

From subsequent measurement through profit and loss

kEUR	Interest income	Interest expense	At fair value	Foreign exchange	Impairment	through equity from subsequent measurement	through profit and loss from derecognition	Net result
Available for sale (afs)	-	-	-	-	-	-	-	-
Financial asset held for trading (hft)	-	-	-	-	-	-	-	-
Loans and receivables (LaR)	5	-	-	-5	-503	-	-291	-794
Financial liabilities measured at amortised cost (FLAC)	-	-28	-	1	-	-	-	-27
Total for fiscal year 2013	5	-	-	-4	-503	-	-291	-821

From subsequent measurement through profit and loss

kEUR	Interest income	Interest expense	At fair value	Foreign exchange	Impairment	through equity from subsequent measurement	through profit and loss from derecognition	Net result
Available for sale (afs)	-	-	-	-	-	-	-	-
Financial Asset Held for Trading (hft)	-	-	-	-	-	-	-	-
Loans and receivables (LaR)	24	-	-	-	-436	-	-242	-654
Financial liabilities measured at amortised cost (FLAC)	-	-1	-	-	-	-	-	-1
Total for fiscal year 2012	24	-	-	-	-436	-	-242	-655

10.4 Fair)value)hierarchy)

Below,+ financial+instruments+measured+at+ fair+ value+are+analysed+and+ categorised+according+ to+ the+ levels+of+the+fair+value+hierarchy+described+under+section 4.18.

The+following+table+shows+the+assets+and+liabilities measured+at+fair+value+as+of+31+December+2014:

kEUR	Level 1	Level 2	Level 3
Assets measured at fair value
Contingent consideration	-	-	2,211
Liabilities for which fair values are disclosed
Obligation under finance lease	-	112	-

The+following+table+shows+the+assets+and+liabilities+measured+at+fair+value+as+of+31+December+2013:

kEUR	Level 1	Level 2	Level 3
Assets measured at fair value
Contingent consideration	-	-	0
Liabilities for which fair values are disclosed
Obligation under finance lease	-	65	-

The+following+table+shows+the+assets+and+liabilities+measured+at+fair+value+as+of+31+December+2012:

kEUR	Level 1	Level 2	Level 3
Liabilities for which fair values are disclosed
Obligation under finance lease	-	3	-

As+of 1+January+2012+no+assets+or+liabilities+were+recognised and+measured+at+fair+value.

The+ fair+ value+ of+ the+ contingent+ consideration+ is+ measured+ on+ a+ quarterly+ basis.+ The+ valuation+ approach+ used+ for+ this+ estimation+ is+ described+ in+ detail+ in+section+ 7+ and+ was+ applied+ consistently+ during+the+reporting+period.

This+financial+instrument+is+classified+as+Level+3,+since+future+estimated+revenues+and+EBITDA+values+ are+ used+ in+ the+ calculation+ of+ the+ fair+ value.+ As+ of+ 31+ December+ 2014+ cumulated+ revenues of+ kEUR 11,600+and+a cumulated+EBITDA+under+kEUR+E1,575 is+expected+for+the+relevant+business+sector+ and+the+relevant+time+span.

As+ of+ 31+ December+ 2013,+ the+ fair+ value+ of+ the+ contingent+ consideration+ amounted to+ kEUR+ 0 compared+to+kEUR+2,211 as+of 31+December+2014.

Changes+to the fair+value+are+recognised+in+financial+income+or+financial+expenses in+profit+or+loss.+In+ 2014,+due+to+changes+in+the+fair+value+of+the+financial+instrument,+financial+income+is+recorded+in+the+ amount+of+kEUR+2,211.

With+regards+to+future+revenues+and+EBITDA+for+the+business+sector,+statistical+models+were+used+for+ these+ calculations.+ The+ actual+ development+ of+ the+ revenues+ and+ EBITDA+ may+ deviate+ from+ the+ assumptions+ made.+ A+ deviation+ would+ lead+ to+ a+ lower+ (return+ of+ 0+ shares)+ or+ higher+ (return+ of+ maximum+2,784+shares)+reimbursement.

If+a+ financial+instrument+is+to+be+classified+as+Level+3,+the+Management+is+to+decide+which+valuation+ process+is+ to+ be+ used.+In+ order+ to+ help+with+ the+ decisionEmaking+ process,+ the+Management+will be+ presented+ with+ various+ alternatives+ by+ the+ inEhouse+ valuation+ department.+ After+ having+ selected+ a+ valuation+ process,+ this+will+ be+ used+ continuously+with+ regards+ to+ this+ financial+ instrument.+The+ fair+ value+will+be+measured+at+least+quarterly.

There+ were+ no+ reclassifications+ between+ the+ different+ levels+ during+ the+ reporting+ period.+ If+ circumstances+arise+which+require+a+change+in+classification,+the+affected+financial+instruments+will+be+ reclassified+quarterly.

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 11.Other)disclosures)

11.1 Notes)to)the)consolidated)statement)of)cash)flows)

The consolidated+ statement+ of+ cash+ flows+ was+ prepared in+ accordance+ with+ IAS+ 7+ Cash+ flow+ statements+and+shows+the+during+the+course+of+the+reporting+year+occuring+changes+to+the+Group's+ cash+and+cash+equivalents+position+due+to+cash+inE and+outflow.

According to+IAS+ 7,+ the+cash+ flows+are+recognised separately+based+on+origin+and+use+between+ the+ operative+sector+and+the+cash+flow+from+the+investment+and+financing+activities.+The+cash+inflow+and+ outflow+ from+ operating+ activities+ are+ indirectly+ inferred+ from+ the+ annual+ profit+ and+ losses+ by+ the+ Group.+Cash+inflow+and+outflow+from+investing+and+financing+activities+are+derived+directly.+The+funds+ in+the+consolidated+cash+flow+statement+correspond+to+the+value+of+cash+and+cash equivalents+in+the+ consolidated+statement+of+ financial+position.+Cash+and+cash+equivalents+include+ the+ freely+available+ cash+deposits+and+deposits+with+financial+institutions.

The+negative+cash+flow+from+operating+activities+results+from+the+correction+of the+annual+deficit+by+ nonEcash+effects.+The+growth+of+the+windeln.de+Group+is+equally+reflected+in+a+significantly+increased+ stock+of+goods+as+well+as+a+high+amount+trade+receivables+and+payables.

The+ negative+ cash+ flow+ from+ the+ investment+ activities+ derives+ predominantly+ from+ investments+ in+ intangible+ assets.+ Here,+ investments+ have+ been+ made+ in+ particular+ in+ developing+ the+ Group's+ own+ online+shop.+ In+ addition,+ investments+ have+ been+ made+ in+ other+ software+ as+ well+ as+ in+ plant+ and+ equipment.

The+cash+ flow+from+ financing+activities+consists+in+essence+of+payments+ from+ shareholders+into+ the+ equity+of+windeln.de+GmbH,+through+which+the+intended+growth+has+been+financed+upfront+and+with+ which+the+liquidity+of+the+Group+was+guaranteed+at+all+times.

In+total,+the cash+and+cash+equivalents+increased+compared+to+the+previous+year+by+kEUR+33,563 to+ kEUR+33,830.

11.2 Other)financial)obligations)and)contigent)liabilities)

a) Obligations)from)OperatingTLeases)–)group)as)lessee)

The+Group+has+closed+leasing+contracts+for+office+spaces+as+well+as+various+vehicles+and+operating+and+ business+equipment.+The+average+maturity+of+these+leasing+contracts+is+between+one+and+five+years,+ but+renew+automatically+for+a+period+of+one+to+five+years+if+not+terminated.+The+leasing+contracts+do+ not allow+ for+ the+ possibility+ of+ contract+extensions.+ As+a+ lessee,+ the+Group+ is+ not+ subjected+ to+any+ limitations+by+the+leasing+agreements.

In+ the+ reporting+ period+ expenses+ from+ operating+ leases+ amount+ to+ kEUR+ 1,066 (2013:+ kEUR+ 791,+ 2012:+kEUR+136).

At+31+December, following+future+minimum+leasing+obligations+from+nonEcancellable operating+leases+ exist:

kEUR	2014	2013	2012
Up to 1 year	1,042	768	240
Above 1 year and up to 5 years	3,103	833	499
Above 5 years	201	-	-
Total	4,346	1,601	739

At+31+December+2014,+the+Company+has+receivables+on+future+minimum+leasing+payments+from+nonE cancellable operating+leases+for+subElet+office+spaces+to+the+amount+of+kEUR+26 (31+December+2013:+ kEUR+32).+All+receivables+are+due+within+one+year.+Before+2013,+the+Group+had+no+subEletting+ commitments.

b) Obligations)from)financeTleases)and)hire)purchase)contracts)

The+Group+has+closed+various+finance+leases+and+hire+purchase+contracts+for+operating+and+business+ equipment.+The+contracts+do+not+allow+for+extensions+or+purchase+options,+and+do+not+contain+price+ adjustment+clauses,+but+renew+automatically+for+a+period+of+one+to+five+years+if+not+terminated.+The+ future+minimum+leasing+payments+from+finance+leases+and+hire+purchase+contracts+can+be+valued+in+ cash+as+follows:

		2014		2013		2012
kEUR	Minimum lease payments	Present value of minimum lease payments	Minimum lease payments	Present value of minimum lease payments	Minimum lease payments	Present value of minimum lease payments
Up to 1 year	36	29	18	14	1	1
Above 1 year and up to 5 years	105	94	57	50	3	2
Above 5 years	1	1	1	1	-	-
Total minimum lease payments	142	124	76	65	4	3
Less interest	-18	-	-11	-	-1	-
Present value of minimum lease payments	124	124	65	65	3	3

d) Other)financial)obligations)

Obligations

At+ 31+ December+ 2014,+ there exist+ future+ obligations+ from+ yet+ undelivered+ orders+ to+ the+ amount+ of+ kEUR+ 6,945 (31+December+ 2013:+kEUR+ 4,000,+ 31+December+ 2012:+kEUR+ 2,119,+ 1 January+2012:+kEUR+ 720).

Litigations

At+31+December+2014,+there+exist+no+significant,+unresolved+litigations.

Guarantees

At+31+December+2014,+no+guarantees+had+been+provided.

Contingent*liabilities

At+ 31+December+ 2014+and+ the+balance+ sheet+dates of+ 31+December+ 2013,+ 31+December+ 2012+and+ 1+ January+2012,+no+contingent+liabilities+existed.

11.3 Collateral)

At 31+December+2014+and+the+balance+sheet+dates of+31+December+2013,+31+December+2012+and+1+ January+2012,+the+Group+does+not+hold+any+collateral.

Regarding+the+inventory+assigned+as+collateral,+see+section 8.4.

11.4 Related)party)disclosures)

A+person+or entity is+considered+related+to+the+Group+when those+persons+and+entities have+control+ of+or+significant+influence+over+the+Group.

Information+on+Group+structure+and+subsidiaries+can+be+found+in section 7. windeln.de+GmbH+is+the+ ultimate+parent+company.

Terms*and*conditions*of*transactions*with*related*parties

Sales+to+and+purchases+by+related+parties are+made+on+terms+equivalent+to+those+that+prevail+in+arm's+ length+ transactions.+ Outstanding+ balances+ at+ yearEend+ are+ unsecured+ and+ interest+ free+ and+ settlement+occurs+in+cash.+There+have+been+no+guarantees+provided+or+received+for+any+related+party+ receivables+ or+ payables.+ For+ the+ year+ ended+ 31+ December+ 2014,+ the+ Group+ has+ not+ recorded+ any+ impairment+of+receivables+relating+to+amounts+owed+by+related parties+(2013:+kEUR+E,+2012:+kEUR+E).+ This+ assessment+ is+ undertaken+ each+ financial+ year+ through+ examining+ the+ financial+ position+ of+ the+ related+party+and+the+market+in+which+the+related+party+operates.

Voluntarily+prepared+consolidated+financial+statements+for+the+years+2012,+2013+and+2014 Transactions*with*key*management*personnel

The+members+of+the+management+team+of+windeln.de+GmbH+and+one+member+of+the+management+ of+ windeln.ch+ AG+ have+ been+ identified+ as+ related+ party+ to+ the+ Group+ according+ to+ IAS+ 24.+ The+ members+of+the+management+team+and+their+compensation+are+described+in+section+11.5.

windeln.ch+AG+has+closed+a+subletting+agreement+with+carry+n+cash+AG+for+office+spaces.+Under+this+ agreement+windeln.ch+ AG+ received+ rent+ in+ the+amount+ of+ kEUR+ 126+ for+ financial+ year+ 2014+ (2013:+ kEUR+11),+ there+were+no+open+ receivables+as+of+31+December+2014+ (31+December+2013:+kEUR+11).+ One+member+of+management+has+a+key+position+in+carry+n+cash+AG.

windeln.ch+AG+rents+office+spaces+from+Hesta+Services+AG.+In+financial+year+2014+windeln.ch+AG+paid+ rent+for+these+office+spaces+in+the+amount+of+kEUR+253+(2013:+kEUR+21).+Payables+in+the+amount+of+ kEUR+ 21+are+ outstanding+as+ of+ 31+December+ 2014+ (31+December+ 2013:+ kEUR+ 21).+One+member+ of+ management+has+a+key+position+in+Hesta+Services+AG.

windeln.de+GmbH+has+closed+a+ subletting+agreement+with+ shopstar+GmbH+ for office+ spaces.+Under+ this+agreement+windeln.de+GmbH+received+rent+in+the+amount+of+kEUR+2+in+financial+year+2014+(2013:+ kEUR+2).+There+were+no+receivables+outstanding+as+of+31+December+2014+(31+December+2013:+kEUR+E ).+In+addition+windeln.de+GmbH+has+purchased+office+equipment+from+shopstar+GmbH+in+the+amount+ of+ kEUR+ 2+ in+ financial+ year+ 2014.+ One+ member+ of+ the+ management+ team+ has+ a+ key+ position+ in+ shopstar+GmbH.

In+ financial+ year+ 2014+ the+ group+ sold+merchandise+ in+ the+amount+ of+ kEUR+ 3+ (2013:+ kEUR+E)+ to key+ management+ personnel+ in+ the+ course+ of+ the+ ordinary+ business+ activities.+ As+ of 31+ December+ 2014+ there+were+receivables+outstanding+in+the+amount+of+kEUR+0+ (31+December+2013:+kEUR+E)+from+key+ management+personnel.

One+ member+ of+ the+ management+ team+ has+ a key+ position+ in+ Yorxs+ AG+ and+ also+ a+ key+ position+ in+ mybet+AG.

A+contingent+consideration+of+kEUR+2,211+(31+December+2013:+kEUR+0)+was+granted+to+a+member+of+ the+ management+ team+ in+ connection+ with+ the+ acquisition+ of+ windeln.ch+ AG.+ In+ addition,+ a+ prepayment for+shareEbased+payments+in+the+amount+of+kEUR+717+(31+December+2013:+kEUR+1,434)+ was+granted+to+a+member+of+the+management+team.+For+details+refer+to+section+7+and+8.7.

Other*transactions

In+financial+year+2014+the+Group+sold+merchandise+to+family+members+of+key+management+personnel+ in+ the+ amount+ of+ kEUR+ 3+ (2013:+ kEUR+ 3,+ 2012:+ kEUR+ 2)+ in+ the+ course+ of+ the+ ordinary+ business+ activities.+As+of 31+December+2014+there+were+receivables+outstanding+in+the+amount+of+kEUR+0+(31+ December+ 2013:+ kEUR+ E,+ 31+ December+ 2012:+ kEUR+ E)+ from+ family+ members+ of+ key+ management+ personnel.

In+ financial+ year+ 2014,+ 2013+ and+ 2012+ no+ loans+ were+ granted+ to+ or+ received+ from+ shareholders+ or+ other+related+parties.

Members+of+the+Management:

Name	Residence	Occupation
Alexander Brand (since 1 February 2010)	Grünwald	Managing director
Konstantin Urban (since 1 December 2010)	Gräfelfing	Managing director

The+members+of+the+Management+are+only+compensated+due+to+their+function+as+a+person+in+a+key+ position.

Remuneration+of+persons+in+key+positions+in+the+Group

kEUR	2014	2013	2012
Fixed salary components	311	300	276
Variable salary components	119	130	90
Benefits in kind	0	-	-
Total remuneration	430	430	366

In+ the+ 2014+ financial+ year+ directors+ occupying+ key+ positions+ within+ the+ Group+ were+ granted+ total+ remuneration+amounting+to+kEUR+430 (2013:+kEUR+430,+2012:+kEUR+366).+This+does+not+include+any+ shareEbased+payment commitments.+The+Group+paid+the+premium+for+a+life+insurance+policy+for+Mr. Urban,+a+leased+vehicle+was+made+available+for+Mr.+Brand.+In+addition,+a+D&O+insurance+policy+with+ no+excess+was+taken+out+for+the+directors+of+windeln.de+GmbH.

During+the+past+year+the+entity's+advisory+board+consisted+of+the+following+members:

• E++++++++++Nenad+Marovac
• E++++++++++Christoph+Braun
• E++++++++++Fausto+Boni (since+29+January+2013)
• E++++++++++Jochen+Gutbrod+(resigned+on+5.+November+2014)
• E++++++++++Hans+Schreck+(since+21 February+2014,+resigned+5+November+2014)
• E++++++++++Tomasz Czechowicz+(since+29+January+2013,+resigned 5.+November+2014)
• E++++++++++David+Reis+(since+5.+November+2014)
• E++++++++++Francesco+Rigamonti+(since+5.+November+2014)

Members+of+the+Advisory+Board+are+reimbursed+the+travel+costs+and+other+expenses+incurred+during+ the+ course+ of+ their+ Advisory+ Board+ duties.+ Advisory+ Board+ members+ do+ not+ receive+ any+ other+ remuneration.

11.6 Events)after)the)reporting)period)

No+reportable+events+occurred+after+the+reporting+period.

Grünwald,+13+March+2015

Alexander+Brand Konstantin+Urban