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YOC AG — Annual Report 2010
Apr 29, 2011
497_10-k_2011-04-29_a0180499-dfb0-431d-8014-77c1a169bd49.pdf
Annual Report
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MOBILE TECHNOLOGY and'MEDIA
The'YOC'Group'has'a'clear'focus'on'mobile'technology'and'media.'The'future'of'the'mobile'market' will'be'determined'by'innovative'media'solutions'and'scalable,'highHperformance'technologies'and' products.'YOC'will'continue'to'expand'and'play'a'significant'role'in'that'global'market'by'developing' cuttingHedge'products'and'platforms'for'the'mobile'Internet'and'advertising'industry.'A'keen perception'of'market'needs,'profound'mobile'knowHhow'and'a'highly'motivated'and'experienced' team'make'accomplishing'this'goal'that'much'easier.
Our'clients'rely'on'our'technology,'our'products'and'our'passion'for'mobile'technology.
2010\$ANNUAL\$REPORT yoc\$ group
YOC'Group'overview
| (in\$EUR\$thousand) | 2010 | 2009 | Change | Change\$in\$% | ||
|---|---|---|---|---|---|---|
| Revenue\$and\$earnings | ||||||
| Total'revenue | 30,453 | 26,123 | 4,330 | 17% | ||
| Germany | 21,544 | 21,095 | 449 | 2% | ||
| Other'countries | 8,909 | 5,028 | 3,881 | 77% | ||
| Mobile'Marketing'segment | 22,214 | 17,500 | 4,714 | 27% | ||
| Affiliate'Marketing'segment | 6,704 | 6,540 | 164 | 3% | ||
| Mobile'B2C'Services'segment | 1,535' | 2,083' | 548' | H26% | ||
| Total | 31,883 | 27,063 | 4,820 | 18% | ||
| EBITDA | 2,819 | 1,025 | 1,794 | 175% | ||
| EBITDA'margin'(in'%) | 9% | 4% | n/a | n/a | ||
| Adjusted'EBITDA | 2819 | 1,828 | 991 | 54% | ||
| Adjusted'EBITDA'margin'(in'%) | 9% | 7% | n/a | n/a | ||
| EBITA*1 | 2,062 | 645 | 1.417 | 220% | ||
| AfterHtax'earnings | 671 | H143 | 814 | 569% | ||
| Earnings'per'share'(diluted'in'EUR) | 0.36 | H0.08 | 0.44 | 550% | ||
| Earnings'per'share'(basic'in'EUR) | 0.39 | H0.08 | 0.47 | 588% | ||
| Balance\$sheet\$and\$cash\$flow\$statement | ||||||
| Balance'sheet'total | 33,288 | 28,968 | 4,320 | 15% | ||
| Equity'ratio'(in'%) | 52% | 41% | n/a | n/a | ||
| Cash'and'cash'equivalents | 5,175 | 2,825 | 2,350 | 83% | ||
| Operating'cash'flow | 1,593 | 2,502 | H909 | H36% | ||
| Employees | ||||||
| Average'number'of'employees*2 | 180 | 159 | 21 | 13% | ||
| Number'of'employees'at'year'end | 187 | 173 | 14 | 8% | ||
| Total'output'per'employee'(in'EUR | 177 | 170 | 7 | 4% | ||
| thousand) |
1 EBIT'before amortisation'due'to'purchase'price'allocations'(EBIT'adjusted'to'eliminate'amortisation'due'to'company' acquisitions)
2 On'the'basis'of'permanent'employees
Where'rounded'amounts'and'indicators'are'used,'differences'may'occur'due'to commercial'rounding.'
To\$Our\$Shareholders
| Letter'to'Shareholders | ||||
|---|---|---|---|---|
| The'Management'Board | ||||
| Dialogue'with'the'Management'Board | ||||
| Report'of'the'Supervisory'Board | ||||
| Corporate'Governance | ||||
| The'Share | 20 |
The\$YOC\$Group
| Company'structure | 25 |
|---|---|
| Operations | 26 |
| Presence'in'Europe | 31 |
| Strategy | 32 |
Technologies &\$Products
| Mobile'Marketing | 38 |
|---|---|
| Mobile'Internet | 42 |
| Mobile'Advertising | 45 |
| Affiliate'Marketing | 48 |
To'Our'Shareholders
| Letter'to'Shareholders | 7 |
|---|---|
| The'Management'Board | 9 |
| Dialogue'with'the'Management'Board | 8 |
| Report'of'the'Supervisory'Board | 10 |
| Corporate'Governance | 12 |
| The'Share | 20 |
OUR' TECHNOLOGY' PLATFORM' ENABLES' US' TO' DELIVER' BILLIONS'OF'MOBILE' PAGE' IMPRESSIONS' EVERY' MONTH
Letter'to'shareholders
Dear'Shareholders,
We'are'sure'about'two'things:'firstly,'that'the'future'lies'in'mobile'browsers,'and'secondly,'that'the'advertising'budgets' invested'in'mobile'channels'will'exceed'online'budgets'in'the'medium'rather'than'the'long'term.'This'was'our'hope'and' expectation when'we'launched'our'business ten'years'ago.'Now,'it'is'reality.
This'development'is'shaped'above'all'by'the'ever'greater'diversity'of'mobile Internet'devices'and'the'increasing' fragmentation'of'app'stores.'Publishers'and'advertisers, which'early'this'year'were'still'focussing'primarily'on'native' applications, can'no'longer'exploit'the'full'reach of'the'mobile'Internet'with'just'one'mobile'presence.'The'development'of' native'applications'for'each'individual'platform'and'each'individual'device'is'not'a'viable'alternative,'as'it'is'far'too'cost'and' timeHintensive.'BrowserHbased'products, on'the'other'hand, can'be'used'for'any'platform'or'device,'embody'the'founding' philosophy'of'the'Internet'and'offer'publishers'both'independence'and'flexibility.'This'is clearly'the'sector'of'the'future.
In'the'light'of'unique'targeting'options,'locationHbased'services,'new'devices'and'innovative,'interactive,'multimedia' advertising'formats'possible'with'mobile'marketing,'the'mobile'segment'is'set'to'increasingly'draw'the'major'budgets'once' invested'in'conventional'and'online'publicity.
Our'2010'financial'year'was'therefore'one'of'strategic'focussing.'Concentration on'mobile'technology'and'media'is'enabling us'to'harness'the'two'market'developments'outlined'above'and'make'optimal'use'of'the'resulting'requirements.'The'key' element'of'this'strategy'is'the'continuous'development'of'innovative'standardised'products'for'the'four'product'areas' mobile'marketing,'mobile'Internet,'mobile'advertising'and'affiliate'marketing.'We'were'able'to'continue'creating'the' required'technological'and'structural'basis'for'our'company's'product'focus'during'the'last'financial'year.
In'quantitative'terms,'the'company'met'the'growth'prognoses.'YOC'Group'revenue rose'17%'during'the'2010'financial'year' to EUR 30.5'million'(2009:'EUR 26.1'million).'EBITDA'was'EUR 2.8'million'(2009:'EUR 1.0'million)'– an'increase'of'around' 175%'compared'to'the'previous'year.
Extremely'positive'developments'were'also'to'be'seen'in'international'YOC Group'business'in'the'2010'financial'year.' Revenue'from'abroad'as'a'percentage'of'total'revenue'rose'from'19%'in'the previous'year'to'as'much'as'29%.
Among'the'most'important'product'developments'in'the'2010'financial'year'were'the'mobile'media'product'YOC'Ad'Plus' and'the'browserHbased'mobile'technology'product'YOC Smart'Web'App.'Both'are'innovative'developments'unique'on'the' international'market.'They'are'the'ideal'addition'to'our'product'portfolio.
We'also'extended'our'mobile'advertising'range'at'the'start'of'the'2010'financial'year,'adding'a'performance'and'reach' network'based'on'a'global selfHservice'technology'platform.'The'platform'brings'together'advertisers'and'publishers'on'the' mobile'Internet'with'a'variable'price'system'and'operates'on'a'global'basis.
We'also'continued'to'develop'our'basic'technologies'and'products,'delivering'new'versions'of'the'two'key'technologies'for' YOC'Group'operations,'FIT'and'AdServing,'with'even'better'performance.
More'customers'than'ever'before'used'our'products'and'platforms'in'the'2010'financial'year.'New'customers'included' brands'and'companies'such'as'Procter'&'Gamble,'Cosmos'Direkt,'VHV,'Ergo'Direkt,'Swiss'Airlines,'Campari,'Sony,' BlackBerry,'Haymarket,'Waitrose,'Audi,'Herold.at,'The'Sunday'Times'and'Grupo'Vocento.
We'also'strengthened ties'to'existing'customers'such'as'CocaHCola,'Opel,'HP,'Ford,'SAP,'MercedesHBenz,'Kraft'Foods'and' Deutsche'Post'thanks'to'our'products'and'platforms.
Outlook\$for\$the\$2011 financial\$year
Our'goal is'to'become'the'leading'global'provider'of'mobile'technology'and'media, and'we'have'laid'the'necessary'strategic' and'structural'groundwork'for'this'development'over'the'past'few'years. Our'technological'platforms'and'products'are' designed'precisely'for'the'two'market'developments'I'outlined'at'the'beginning'and'they'promise'great'scaling and'growth potential.
The'focus'for'the'2011'financial'year'will'be'targeted'investment'in'product'development'and'international'sales.'This' means'we'will'be'continually'reinvesting'profits'from'the'increasing'scaling'in'2011.'Investments'in'further'growth' segments'is'part'of'our'clear'strategy in'order to'realise'our'vision.
We'would'like'to'thank'all'shareholders'and'business'partners'for'working'with'us.'We'are'extremely'optimistic'about'the' future'and'look'forward'to'continuing'to'work'with'you.
Kind'regards,
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Dirk'Kraus,'CEO'of YOC'AG
The'Management'Board
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►The'YOC'AG Management'Board:'Jan'Webering,'Dirk'Kraus'and Alex'Sutter
Jan\$Webering,'COO'of YOC'AG
"The%key%element%of%our%growth%strategy%for%the%next%few%years%is%the%development%of%innovative%standardised%products%on% the%basis%of%our%leading%technology%platform.%We%laid%the%necessary%content%and%structural%foundation%for%this%in%the%2010% financial%year.%With%the%launch%of%the%mobile%performance%network%ubiyoo,%the%media%product%YOC%Ad%Plus%and%the% technology%product%YOC%Smart%Web%App,%we%have%added%strong%new%elements%to%our%product%portfolio%which%are%unique%on% the%international%market."
Dirk\$Kraus,'CEO'of YOC'AG
"We%set%a%clear%course%for%further%scaling%and%therefore%also%efficient%growth%with%our focus%on%mobile%technology%and%media% in%the%2010%financial%year.%This%will%enable%us%to%further%strengthen our%leading%position%in%Europe%this%year."
Alex\$Sutter,'CSO'of'YOC'AG
"The%2010%business%year%saw%more%customers%than%ever%before%opt%for%our%platforms,%impressed%with%our%new%technological products.%Demand%also%rose%sharply%in%the%media%segment%thanks%to%our%broad%range%with%the%three%calculation%models% premium,%reach and%performance.%This%further%consolidated%our%position%as%a%leading%mobile%technology%and%media%provider% and%enabled%us%to%benefit%even%more%from%market%growth."
Dialogue'with'the'Management'Board
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The\$ mobile\$ marketing\$ market\$ is\$ continuing\$ to\$ grow.\$ What\$do\$you\$see\$as\$ the\$key\$developments\$of\$ the\$past\$ year?
Two'major'developments'affected the'mobile'marketing' market' in' the' 2010' financial' year.' First' of' all,' mobile' marketing' gained' enormous' momentum.' A' defining' feature' of' mobile' media' has always' been' the unique' targeting' potential which' can'minimise' wastage like' no other' channel;' however,' the' advertising' industry' only' began'last'year'to'give'this'USP'the'attention'it'deserves:' its' benefits' became' fully' apparent in combination' with' other' factors.' Such' factors' include' new' devices' such'as' the' iPad,' the' increasing' number' of' mobile' advertising' formats and'the'growing'range'of'innovative'rich'media' advertising' formats. The' second' development' was' on' the' mobile' Internet.' Demand' for' native' applications' dominated' in' the' first' six'months' of' the' year,' but' then' slowly'fell'in'the face'of'app'store'fragmentation'and'the' great'diversity'of devices.'Publishers'and'advertisers'are' now'increasingly'turning'to'the'mobile'browser,'in'other' words' mobile' portals' or' web' applications' such' as' the' YOC'Smart'Web'App, to'be'able'to'exploit the'full'reach' of' the' mobile' Internet.' In' short,' the' best' app' is' the' browser.
How\$ has\$ the\$ YOC\$ Group\$ positioned\$ itself\$ in\$ this\$ context?
We'further'consolidated'our'strategic'focus'on'the'fields' of' mobile' technology' and' media' during' the' 2010' financial'year.'We'have'therefore'anticipated'the'market' developments' mentioned' before' and' can' now' make' optimal'use'of' the' requirements' they'create.'Our focus' has' also' sharpened' our' company' profile.' Business' segments'which'cannot'be'integrated'into' the strategy,' for' example' the' mobile' B2C' business,' are' no' longer' a' focus. That'is'why'we'have'been'reporting'to'the'capital' market'on'the'two'segments'mobile'technology'(mobile' marketing' and' mobile' Internet) and media (mobile advertising' and affiliate marketing)' since' 01' January' 2011. We' can' now' ensure' greater' reporting' transparency' and' present' a' clearer' business' model' to' the'capital'market.
Scaling\$ is\$ a\$ decisive\$ growth\$ factor\$ for\$ the\$ YOC\$ Group.\$ How\$are\$you\$fostering\$it?
Our' technologies' are' the' foundations' on' which' our' business' stands.' Technologies' are' the' basis' for' developing' the' products' and' platforms' for' our' company's' four' product' segments.' We' have' been' successfully' and' continuously' standardising' these' products' for' several' years.' We' now' no' longer' develop' any'individual'solutions, relying'instead'on'our'platforms' and'diverse'product'portfolio' for'dealing'with'customer' requests.' Licences' create permanent' customer' ties.' Continuous' development' of' our' basic' technologies' enables ever' better' platform' and' product' performance' and' therefore also' drives' forward' our' business' scaling.' Partner' marketing' through' our' software' subsidiary' Sevenval GmbH is' another' decisive' factor' in' continued' scaling.' Overall,' we' are' currently' in' a' better' technological'and'strategic'position'than'ever'before.
How\$did\$ the\$mobile\$advertising\$ segment\$ develop over\$ the\$past\$financial\$year?
The' mobile' advertising' product' segment' saw' the' strongest' growth' of' all' company' segments' in' 2010,' a' development' caused' by' two' factors:' our' extremely' broad' range' of' international' advertising' environments' and'the'regular launch'of'innovative'advertising'formats' such' as' YOC' Ad' Plus.' What' is' more,' not' only' is' the' number' of' new,' highHperformance' mobile' devices'H for' example' the' iPad' – growing' exponentially,' so' is' their' ability'to'display'multimedia'web'content.'Advertising'on' mobile' phone' displays' is' now' part' and' parcel' of' the' media'mix'used'by'advertisers'and'their'agencies.
YOC\$has\$sites\$in\$five\$different\$countries.\$How\$important\$ is\$that\$to\$your\$international\$business?
29%'of'total'revenue in'the'2010'financial'year'was'from' outside' Germany' – up' from' just' 19%' in' the' previous' year.'We' have' sites' in'Germany,' Austria,' the'UK,' Spain' and' France;' this' makes' us the' only' mobile' technology' and' media' provider' present' in all' relevant European' markets. Our' acquisition' of' the' French' company' MobilADdict in' March' of' this' year' complemented' our' panHEuropean'strategy.'We'will'continue' to'pursue'YOC' Group' internationalisation this' year' through' both' our' own' activities' and' partner' marketing.' Part' of' this' strategy' is' the' launch' of' business' on' the' US' market' which'got'underway'in'the'first'quarter'of'2011.
Have\$customers\$and\$their\$requirements\$changed?
What' is' most' important' to' our' customers' is' the' reliability' and' security' of' our' platforms' and' products.' Customers'expect'a'highHquality'technology product'and' its' smooth' implementation.' Mobile technology is' no' longer' simply' a' niche' product' for' a' small' customer' group.' The' advertising' industry,' service' providers,' publishers,' media' organisations' and' eHcommerce' providers' have' recognised' the' relevance' and' the' benefits'of'the'mobile'channel,'and'there'is'now'a'crossH sector'move'towards'communication'via'mobile'devices.'
Last'year,'we' recorded' the'largest' number' of' customer' acquisitions' in' our' history, including' many' companies' and'brands'whose'presence'in' the'mobile'device'sector' would' have' been' unthinkable' just' a' few' years' ago.' Examples' include' the' longHestablished' firm' Miele' and' insurer'VHV'Versicherung.
What\$market\$developments\$will\$determine the\$current year?
We' are' seeing' a' clear' move' from' informationHbased' towards' transactionHbased' services' on' the' mobile' Internet,' a' trend' set' to' continue' this year.' The' new,' highHperformance'devices,'faster'data'transmission'rates' and'flat'rates'for'mobile'Internet'offer'a'basis'for'the'use of'mHcommerce.' Many' transactions' are' already' carried' out'on'mobile'phones.'Mobile'banking'will'also'continue' to' grow.' Essential' to' transfers' or' payments' on' the' mobile' Internet' is' a' technology' which' meets' the' strict' security'requirements'for'such'applications. The'key USP' of' YOC' Mobile' Banking' technology' is' the' option' not' simply' to' use the' software' as' a' service,' but' rather' to' incorporate it' within' financial' institutions' IT systems. This' development' ought' to' bring' a' boom' in' mobile' affiliate' marketing' in' addition' to' the' strong' overall' growth' in' mobile' advertising.' Mapvertising' should' also' become' far' more' important' this' year' as' advertisers' exploit one'of'the'greatest'benefits'of'the'mobile'device.
What\$does\$the\$future\$hold\$for\$the\$YOC\$Group?
We'aim'to'become'the'leading'global'provider of'mobile' technology'and'media,'and'our' focus'on' the' two'highly' scalable' and' rapidly' growing' segments' of' mobile' technology' and' media' has' created' a' firm' basis' for' success.' We' shall' be' reinvesting' in' greater' internationalisation' and' product' development' throughout' the' year' to' lay' the' foundations' for' further' growth.' We' believe' we' can' achieve' our' target' in' the' medium' term' if' we' continuously' develop' our' strategic' position.
Report'from'the'Supervisory'Board
The Supervisory'Board carried'out'the'duties'incumbent' upon' it' under law,' the' articles' of' association' and' the' company' rules' of' procedure' during' the' period' under' review,' and' continuously' monitored' and' regularly' advised' the'Management'Board'on' the'management'of' the' company.' The' Supervisory' Board was' directly' involved' in' all' decisions' of' fundamental' importance' to' the' company.' In' keeping' with' its' obligations,' it' responded' to' the' position' of' the' company,' business' developments and' intended' corporate' policy' and' planning' in' regular' written' and' verbal' reports' to' the' Management' Board. The' chairman' of' the' Supervisory' Board and'his'deputies'were'also'in'regular'contact'with' the' Management' Board between' Supervisory' Board' meetings' and' kept' upHtoHdate' with' current' developments in' the' business' situations' and' significant' transactions'and'events.
After' scrutinising' the' documents' submitted' and' discussing' approval' in' detail,' the' Supervisory' Board decided' whether' to' approve' Management' Board decisions' and' measures' subject' to' Supervisory' Board approval'pursuant' to' the' law' or the' applicable' rules' of' procedure.
Alongside'a'wide'range'of'technical'issues'and'measures' subject'to'approval,'meetings also focussed'on'business' developments,' the' expansion' of' international' business' and' company' competitiveness.' Equal' attention' was' given to' shortHterm,' mediumHterm' and' longHterm' concerns.
Work\$of\$the\$Supervisory\$Board
The' Supervisory' Board held' six' ordinary' meetings' in' 2010' on' 22' February,' 15' April,' 26' April,' 15' June,' 11' August' and' 13' December' and' engaged' in' detailed' consultation with' the' Management' Board.' The' Supervisory' Board as' a' whole' was' moreover' in' close' communication'with'the'Management'Board throughout' the' year' and' was' kept' informed' by' the' latter' of' all' important' business' transactions. The' Supervisory' Board took' advantage' of' the' option' of' discussing issues' without' the' Management' Board.' All' Supervisory' Board meetings' in' 2010' were' plenary;' no' committees' were' established.
Major' focuses' of' the' Supervisory' Board in' the' 2010' financial'year'included the'launch'of' the' reach'network' ubiyoo, the' renaming' of' the' international' subsidiaries' and' the' capital' increase' implemented' in' December' 2010.' The' supervisory' body' also' advised' the' Management' Board on' these' matters' between' Supervisory'Board meetings.
At' its' meeting' of' 22' February' 2010,' the' Management' Board presented' the' preliminary' results' for' the' 2009' financial' year' and' current' developments' in' the' first' quarter'of'2010'to'the'Supervisory'Board
The' Supervisory' Board approved' the' proposed' agenda' for'the'2010'general'meeting'at'its'meeting'on'15'April,' at which'it'was'also'informed'that'Close'Brothers'Seydler' Bank' AG' would' be' replacing' Bankhaus' Sal. Oppenheim' as'the'YOC'AG'designated'sponsor'as'of'April'2010.
At' its' meeting' on' 26' April' 2010,' the' Supervisory' Board approved' the' annual' financial' statements for' the' 2009' financial' year' on' the' recommendation of' and' after' inH depth discussions with' the'auditor.'The'annual' financial' statements'were'thus'adopted.
Company'lawyers'and'the'Management'Board discussed' arrangements for' the 2010' general' meeting' with' the' Supervisory'Board at'the'meeting'of'15'June'2010.
Management'board'and'Supervisory'Board examined, at' the'meeting'on'11'August'2010, the'planned'changes'to' the' names' of' the' international' subsidiaries.' Bluestar Mobile Ltd. (UK) and MIAM S.L. (Spain)'were'renamed'in' the'third'quarter'of'2010'to YOC'Ltd.'and'YOC'Spain'S.L..' The' existing' YOC' Ltd.' was' renamed' YOC' Mobile' Advertising'Ltd.,'to'allow'the'mobile'advertising'business' to' be' offered' in' an' identical' structure' throughout' Europe. Business'for'the'reach'network'ubiyoo was'to'be' moved' from' Berlin to' London.' The' Supervisory' Board approved'the'planned'changes.
The' Supervisory' Board approved' the' planned' capital' increase' from' authorised' capital' (decision' of' the' 2010' general' meeting' pursuant' to' Section' 203' subsections' 1' and' 2' AktG [German' Stock' Corporation' Act]' in' conjunction' with' Section' 186' subsection' 3' sentence' 4' and'subsection'4'sentence'2'AktG)'at'its'meeting'on'13' December' 2010.' 137,000' shares' were' subsequently' placed' with' institutional' investors' in' Europe' at EUR 33.25'per'share.
The' capital' increase' raised the' number' of' company' shares'issued' from'1,750,000' to'1,887,000;'this'is'equal' to'an'increase'in'share'capital'from'1,750,000.00'EUR to 1,887,000.00'EUR.'Approval'of'the'YOC'Group'corporate' financial plan for' 2011' was' similarly' granted' by' the' Supervisory'Board at'its'meeting'on'13'December'2010.
Audit\$ of\$ the\$ annual\$ and\$ consolidated\$ financial\$ statements
The' annual' and' consolidated' financial' statements' and' the corresponding management' reports for' the' period' from'1' January' to'31'December'2010'were'audited'and' given' an' unqualified' audit' opinion' by' Ernst' &' Young' GmbH' Wirtschaftsprüfungsgesellschaft,' Berlin,' the' auditor' appointed' by' the' general' meeting' on' 16' June' 2010.' The' aforementioned' documents' were' submitted' to'all'members'of'the'Supervisory'Board as'soon'as'they' were'completed.
The' annual' and' consolidated' financial' statements' and' management' reports' were' discussed' in' depth' at' the' Supervisory' Board meeting' of 5' April' 2011' in' the' presence' of' the' auditor,' who'reported' in' detail' on' the' scope,' focuses' and' findings' of' his' audits.' There' was' no' reason' to' believe' that' the' auditor' had' any' conflict' of' interests.' The' Management' Board also' explained' the' annual' and' consolidated' financial' statement' at' this' meeting.
The'Supervisory'Board acknowledged'and'approved' the' findings' of' the' audits.' The' Supervisory' Board raised' no' objections' on' the' basis' of' its' own' observations' and' approved' the' annual' and' consolidated' financial' statements'of'YOC'AG'as'at'31'December'2010'on'5'April' 2011.' The' annual' financial' statement' was' therefore adopted'pursuant to'Section'172'AktG.
Corporate\$Governance
The'Supervisory'Board studied'the'details'of'the'German' Corporate' Governance' Code [Deutscher% Corporate% Governance% Kodex].' Information' on' corporate' governance'in'the'company'and'a'report'on'the'amount and'structure'of'remuneration'for'the'Supervisory'Board and'Management'Board can' be' found' on' pages' 15'and' 16' of' the' Annual' Report.' In' December' 2010,' the' Management'Board and'the'Supervisory'Board delivered' their'joint'declaration'of'conformity pursuant to Section' 161' AktG% and' made' this' declaration' permanently' accessible' on' the' company's' website. YOC' AG' largely' complies' with' the' recommendations' of' the' German' Corporate' Governance' Code.' The' declaration' of' conformity together' with' explanations' of deviations' from'the'recommendations'can'be'found'on'pages 17'to' 19'of'the'Annual'Report.
Changes\$ in\$ the\$ Supervisory\$ Board and\$ Management\$ Board
Supervisory' Board' member' Dr' Jürgen' Wolff left' the' company' on' 31' March' 2010.' Dr Arnold' Bahlmann' stepped' down' from' the' Supervisory' Board on' 30' June' 2010'and'Mr'Michael'Schwetje was'appointed'to'replace' him.
Thanks\$to\$the\$members\$of\$the\$Management\$Board and\$ all\$YOC\$AG\$staff
The' Supervisory' Board would' like' to' thank' the' Management' Board and' all' staff' of' YOC' AG' and' other' companies'in'the'group'for'their'great'commitment'over the'past' financial'year.'They'have'once'more'helped' to' make' it' a' successful' year' for' YOC' AG' and' continue' to' generate' positive' and' sustainable' development' prospects'for'YOC'AG'business.
Berlin,'April'2011
The'Supervisory'Board
Gerd'SchmitzHMorkramer Chairman
Corporate'Governance
YOC AG attaches great importance to corporate' governance:' corporate' governance' stands' for' the' responsible' and' longHterm' valueHdriven' management' and' control'of'our'company.'Efficient'cooperation'between'the' Management'Board and'Supervisory'Board,'respect'for'the' interests' of' the' shareholders' and' open' and' transparent' corporate' communications' are' key' aspects' of' good' and' responsible' company' management' and' corporate' governance.
The' Management' Board and' Supervisory' Board report' as' follows on'corporate'governance'at'YOC'AG:
YOC AG complies'with'the'Corporate'Governance'Principles' [Corporate Governance% –Grundsätze]' as' amended' on' 18' June'2009'/'26'May'2010'with'the'exception'of'Points 2.3.2, 3.8 subsections 2' and 3, 4.1.5, 4.2.3 subsection 5, 5.1.2 subsection 1 and 5.4.1 subsections' 2 and 3, 5.1.' 2 subsection' 2 sentence 3, 5.' 3.1, 5.' 3.' 2 and 5.' 3.' 3,' 5.4.1 subsection' 2 sentence 1, 5.4.3 sentence 3, 5.4.4, 5.4.6 subsection 1 sentence 3, 5.4.6' subsection' 2 and 7.1.' 2 sentence 4. The' Management' Board and the Supervisory' Board of YOC AG' have' adopted' the' declaration' of' conformity'to'the'Code'attached'to'the'end'of'this'report.'It' has' been' published' on' the' website of YOC AG at www.yoc.com (Investor Relations'section).
1.\$Shareholders\$and\$general\$meeting
YOC' AG' reports' to' its' shareholders' four' times' in' the' financial' year' on' business' developments' and' the' asset,' financial' position' and' results' of' operations' of' the' companies' in' the' Group.' Matters' upon' which' the' general' meeting' decides' include' the' allocation' of' earnings,' approval' of the' actions' of' the' Management' Board and' Supervisory' Board,' and' the' selection of' the' auditor.' Amendments' to' the' articles' of' association' and' corporate' actions'are'resolved'upon'by'the'general'meeting'alone'and' are'implemented'by'the'Management'Board.'Shareholders' may' submit' counterHmotions' to' resolutions' proposed' by' the'Management'Board or'Supervisory'Board and'challenge' decisions'of'the'general'meeting.
The' Management' Board makes' use' of electronic' communication channels,' in' particular' the' Internet,' to' facilitate'shareholder'access' to'information'on' the'general' meeting' and' allow' shareholders' to' vote' in' absentia,' for' example'by'appointing'a'proxy.
2.\$Management\$and\$control\$structure
As' required'under'the'German'Stock'Corporation'Act,'YOC AG has' a' dual' management' and' control' structure' comprising'a'Management'Board and'a'Supervisory'Board.' There' is' a' strict' separation' of' management' (Management' Board)' and' corporate' control' (Supervisory' Board)' within' this' dual' system.' It' is' not' legally' possible' to' sit' simultaneously' on' both' the' Management' Board and' the' Supervisory' Board.' Each' of' these' two' bodies' has' its' own' duties'and'responsibilities'which'are'clearly'defined'by'law.
2.1\$The\$Management\$Board
There' were' three' members' of' the' Management' Board in' 2010:
- •'Dirk'Kraus,'CEO
- •'Alex'Sutter,'CSO
- •'Jan'Webering,'COO
The' Management' Board has' sole' responsibility' for' the' management' of' the' company' and' exercises' control' over' the' companies' in' the' Group.' It' has' a' duty' to' act' in' the' interests' of' the' company' and' increase' longHterm' shareholder' value.' It' is' responsible' for' defining' the' company's' strategic' direction' in' consultation' with' the' Supervisory'Board.
The' Management' Board works in' close' cooperation with' the' Supervisory' Board,' informing' the' latter' regularly,' promptly' and' in' detail' of' all' issues' relevant' to' overall' strategy,' strategy' implementation,' planning, business development,' financial' position' and' earnings,' compliance' and'corporate'risk.
The'Management' Board is' responsible' for'drawing' up' the' quarterly' reports' and halfHyearly and' annual' financial' statements of' YOC AG and' the' consolidated' financial' statements.'It'ensures compliance'with'statutory'provisions' and'appropriate'risk'management'within'the'company.
2.2\$The\$Supervisory\$Board
In'accordance'with'Section'96,'subsection'1,'sixth'case,'and' 101' subsection' 1' AktG% in' conjunction' with' Section' 10' subsection' 1' of' the'articles' of'association,' the'Supervisory' Board of'YOC AG comprises'three'shareholder'members.
The' Supervisory' Board monitors' and' advises' the' Management' Board on' the' management' of' the' business.' The'Supervisory'Board discusses'business'development'and' planning,' strategy' and' its' implementation' with' the' Management' Board at' regular' intervals.' It' approves' the' annual'financial'statement'and'takes'note'of'and'approves' the' consolidated' financial' statement.' Members' of' the' Management' Board are' furthermore appointed' by' the' Supervisory'Board.'Fundamental'decisions'affecting'YOC'AG' require' Supervisory' Board approval. These' include' decisions' on measures' that'would' significantly' change the' assets,' financial' position' or' results' of' the' company.' The' disclosure' and' reporting' obligations' of' the' Management' Board were'defined'by'the'Supervisory'Board.
The' members' of' the' Supervisory' Board make' their' decisions'independently'and'are'not'bound'by'the'demands' or' instructions' of' third' parties.' Consultancy,' service and' certain' other' agreements' between' YOC' AG' and/or' its' subsidiaries' and' members' of' the' Supervisory' Board must' furthermore'be'approved'by'the'Supervisory'Board.
3.\$Remuneration\$report
The'remuneration'report'is'based'on'the'recommendations' in' the' German' Corporate' Governance' Code.' It' sets' out' principles'which'are'applied'in'setting the'remuneration'of' the'Management'Board of'YOC'AG'and'explains'the'amount and' structure' of' these' payments.' It' also' details' the' principles'applied' to'and' the'amount of'Supervisory'Board remuneration.
The Remuneration Report also contains details which' German commercial law requires to be part of the notes'to' the' consolidated' financial'statements' pursuant' to' Section' 314' of' the' German' Commercial' Code{Handelsgesetzbuch,' HGB] or' of' the' Group' management' report' pursuant' to' Section'315'of'the'HGB.
3.1\$Management\$board\$remuneration
The' Supervisory' Board is' responsible' for' setting' Management' Board remuneration.' Its' decision' takes' account' of' the' sites' and' activities' of' the' enterprise,' the' enterprise's' economic' and' financial' position,' the' tasks' of' the' Management' Board member' in' question' and' the' amount'and'structure'of'management'board remuneration' at'other'companies'in'the'sector. Remuneration'is'adjusted so' that'it'remains'at'a'level'competitive'within' the'market' for' highly' qualified' management' personnel' and' offers' a' performance'incentive.
Management' board' remuneration' is' performanceHrelated.' In' the' 2010' financial' year,' it' consisted' of' a' fixed' component,'a'variable'component'and'participation'in' the YOC'Management'Incentive'Programme.
•'The'fixed'remuneration'is'paid'as'a'monthly'salary.
•'The'variable'component is'a'share'of'the'profits based'on' results'of'operations'under'IFRS.
• Participation in the "YOC Management Incentive Programme"'gives'the'members'of'the'Management'Board' subscription'rights'to'shares'in'YOC'AG.
Participation of the Management Board in the' "YOC' Management'Incentive'Programme"'is'intended' to'reward the contribution of the Management Board to' increasing shareholder value and to promote the longHterm'success'of' the'company.'This'element'of' remuneration'and' the'longH term' incentive' it' offers' creates' a' useful' link' between' the' interests'of'the'management'and'those'of'the'shareholder.
Management\$Board\$remuneration\$in\$2010
| Name | Fixed (in\$ EUR\$ thousand) |
Variable (in\$ EUR\$ thousand) |
Subscription\$ rights (no.) |
|
|---|---|---|---|---|
| Dirk'Kraus' | 170 | 36 | 32,655 | |
| Alex'Sutter' | 160 | 36 | 32,655 | |
| Jan'Webering' | 150 | 36 | 32,655 | |
| Total | 480 | 108 | 97,965 |
Remuneration'received'by'the'Management'Board in'2010' totalled'EUR 588'thousand.'This'total'comprises'the'sum'of' fixed' remuneration' of' EUR 480' thousand' and' a' variable' component,'which'amounted' to'EUR 108' thousand' for' the' Management' Board as'a'whole'in' 2010.'The'Management' Board held'a'total'of'97,965'subscription'rights'in'the'2010' financial' year.' These' options' had' been' issued' in' the' 2009' financial' year.' The' fair' value' of' the' subscription' rights' amounted' to' around' EUR 403' thousand as' at' the' balance' sheet'date.
As' a' contractual' fringe' benefit,' Mr' Jan Webering' has' the' right'to'a'company'car'for'both'business'and'private'use.
3.2\$Supervisory\$board\$remuneration
Supervisory' board' remuneration' was' set' by' the' general' meeting' on' the' basis' of' a' proposal' by' the' Management' Board and'Supervisory'Board.
Supervisory' board' remuneration' is' fixed.' The fixed' remuneration' amounts' to' EUR 7.5' thousand' for' one' financial' year.' The' chairman' of' the' Supervisory' Board receives'2.5'times'and'the'deputy'chair'1.5 times'this'fixed' amount.
All' components of remuneration for the completed financial year' are' due' for' payment' following' the' ordinary' general' meeting' at' which' the' approved' consolidated' financial' statements' for the last financial year' are' presented.
Supervisory'board'remuneration'for'the'2010'financial'year' totalled'EUR 37.5'thousand.
| Name | Fixed\$ remuneration\$ (in\$ EUR\$ |
|---|---|
| thousand) | |
| Gerd'SchmitzHMorkramer' | 18.75 |
| Peter'Zühlsdorff' | 11.25 |
| Michael'Schwetje' | 3.75 |
| Dr'Arnold'Bahlmann' | 3.75 |
| Total | 37.50 |
4.\$Accounting\$and\$auditing
The' consolidated' financial' statements' and' interim' reports' are drawn' up in accordance with IFRS. The consolidated' financial statements are' drawn' up by the Management' Board and reviewed by the auditor and the Supervisory' Board. The consolidated financial statements for' the' 2010' financial' year' were' not' completed' by' the' deadline' for' public disclosure of 90 days after the end of the financial year, as' defined' in Point 7.1 .2 sentence 4 of the'German Corporate Governance Code;'nor'were' the'interim' reports' published' by' the' deadline' of 45 days after the end of' the reporting period set out in Point 7.1.2, sentence 4 of' the German Corporate Governance Code.' The' company' shall' make' every' effort' to' comply' with' the' recommendations pursuant' to' Point 7.1.2' sentence 4 of the German
Corporate Governance Code,' but' cannot' guarantee' compliance'for'2011.
It' was' agreed' with' the' auditor,' Ernst & Young GmbH,' Wirtschaftsprüfungsgesellschaft, Stuttgart, Berlin branch, that the chairman of the Supervisory' Board would' immediately' be' informed' of' any' reasons' precluding' the' employment' of' the' auditor' and' any conflicts of interest arising during the audit' and' that' the' auditor' would' immediately' report' on all issues' and'events' significant for' the' tasks' of' the' Supervisory' Board' revealed' during' the' conduct'of'the'audit.
5.\$Transparency
YOC' AG informs' all capital' market' participants equally,' promptly,' simultaneously' and' in' detail.' Reporting on the business situation and' YOC AG and YOC Group results' is through the annual report, the halfHyearly report and the' interim reports.' Information' is' also provided' in' adHhoc' communications'where'this'is'a'statutory'requirement, and' on'the'company'website.
Changes'in'the'shareholder'structure'subject'to'mandatory disclosure' under' Section 26' WpHG [German' Securities' Trading'Act]'and'the'acquisition'and'disposal'of'the'shares' held' by persons' in' management' positions' at' YOC' AG' (directors' dealings' pursuant' to' Section' 15 a WpHG)' are' also'published'by'the'Management'Board.
The'tables'below'list'all'holdings'of'the'Management'Board and' Supervisory' Board in' YOC' AG which' directly' or' indirectly'exceed'1%'shares'issued'by'the'company:
Management\$Board\$holdings\$as\$at\$31\$December\$2010
| Name | Number\$of\$shares |
|---|---|
| Dirk'Kraus | 447,450 |
| Alex'Sutter' | 54,925 |
Supervisory\$Board\$holdings\$as\$at\$31\$December\$2010
| Name | Number\$of\$shares |
|---|---|
| Peter'Zühlsdorff' | 265,271 |
| Michael'Schwetje | 293,560 |
6.\$ Further\$ information\$ about\$ the\$ YOC\$ AG\$ share option\$ programme
2009' saw' the' launch' of' the "YOC Management Incentive Programme" with' a' total' of' 175,000' share' options.' One' share'option'entitles'the'holder'to'acquire'one'share'in'YOC AG. The'purchase'options'for YOC'shares'can'be'granted'to' members'of'the'Management'Board (up'to'115,000)'and'to' employees'(up'to'59,500).'The'"YOC'Management'Incentive' Programme"' runs until 31 December 2012.' As' at' 31 December' 2010,' options' to' purchase' 97,965' shares' had' been' granted' to'members' of' the'Management' Board and' options'for'59,500'shares'granted'to'employees.
The' subscription' rights' or' share' options' may' only' be' acquired' during specified' acquisition' periods. The' acquisition' period' in' the' year' is' based' on' the timing' of' company's annual'press'conference on'financial'results and' lasts' 10' trading' days.'The' second'acquisition'period'in' the' year' is' based' on' the' publication' of' the' first' halfHyearly' report'for'the'financial'year'and'also'lasts'ten'trading'days.' The'final'acquisition'period'for'subscription'rights'will'be'in' the'year'2012.
The'share options' or' subscription' rights'may' be' exercised' by the' holder no' earlier' than' three' years' from the' respective'issue'date.'The exercise price of the subscription rights is based on the average Xetra closing price of the YOC share for'the last eight trading days before the start of'the' acquisition'period. However, the exercise price must be at least equal'to'the'closing'price'of'the'YOC'share'on'the'day' on' which' the' subscription' rights' were' issued.' The' prerequisites' for'the'exercise'of'subscription'rights'include' the' holder's' ongoing' employment' with' the' company' and' the' fulfilment' of' certain' performance' targets.' The performance targets include an increase in the' YOC' share' price. The subscription rights may only be exercised during a'specified exercise period.'Exercise periods are'also based on the timing of the annual company'press conference'and' of'the publication of the first'halfHyearly'report on the'first half of the year. Each exercise period comprises 17'trading' days. All' holders' of' share' options' must comply' with' the' provisions'of'insider trading'laws.
7.\$ 2010\$ declaration\$ of\$ conformity with\$ the\$ German\$ Corporate\$Governance\$Code
In' accordance' with' Section 161' AktG,' the' Management' Board and'Supervisory'Board hereby'declare'that,'since'the' last'declaration' of' conformity in'December' 2009 and' with' the' following' and' in' some' cases' companyHspecific' exceptions,' YOC AG has' complied' with' the' recommendations' of' the' Commission' of' the' German' Corporate' Government' Code' [Regierungskommission Deutscher%Corporate Governance Kodex]'as'amended'on'18' June' 2009' /' 26' May' 2010' and' shall' in' future' continue' to' comply' with' the' recommendations' of' the' Commission' of' the' German' Corporate' Government' Code as' amended' on' 26' May' 2010. This' declaration' for' the' period' from' the' submission'of' the'last'declaration'of'conformity to'01 July' 2010 is'based'on' the'German'Corporate Governance'Code (hereafter' the' "Code"' or' "GCGC") as'amended' on' 18' June' 2009. The'declaration'on'corporate'governance'in'practice' at YOC AG as' of' 2' July 2010' is' based' on' the' recommendations' of' the' German' Corporate Governance Code' as' amended' on' 26' May' 2010,' published' in' the' German' Electronic' Federal' Gazette [Elektronischer% Bundesanzeiger]'on'02'July'2010.
•' Point' 2.3.2' of' the' Code:' The Company' deems' the' announcement of the invitation to the General'Meeting'in' the'Electronic'Federal'Gazette'to'be'sufficient.
• Item'3.8.'subsections 2 and 3 of'the'Code: The Company does' not' believe' that' an' excess' would' strengthen' the' motivation' or' sense' of' responsibility' with' which' the' members of the Management Board and Supervisory Board' carry'out' their'duties. The purpose'of'D&O'insurance'is' to' hedge'material'company'risks; the'protection'of the'assets' of' the' board' members is' at' most' a' secondary' consideration.
•' D&O' liability' insurance' for' the' Management' Board complied' with' Section 23 of the EGAktG [Introductory Act to' the Stock Corporation Act]'(transitional provision'of' the' Appropriateness'of'Management'Board'Compensation'Act'H Gesetz zur Angemessenheit der Vorstandsvergütung).' This' means' that' none' of' the' D&O' insurance' policies' in' the' period' between' submission' of' the' last declaration of' conformity in' December' 2009' and' the' end of' the' transitional' period,' i.e.' 30' June' 2010,' included' excesses. D&O'insurance'policies'for'Management'Board members'as' of' 1' July' 2010 include' the' excess' required' under' the' German'Stock'Corporation'Act.
•' Point 3.8'subsection 3' of' the' Code:' The'D&O insurance' policies'concluded'for'the'Supervisory'Board do'not'include' an'excess.
•' Point 4.1.5' of' the' Code:' The' Management' Board considers' both' companyHspecific' circumstances' and' reasonable'diversity'when' filling'management'posts'within' the' company.' However,' we' believe' the' guidelines' in the' GCGC' excessively' restrict' the' Management' Board in' its' choice of'suitable'candidates'for'the'management'positions' to'be'filled.
• Point' 4.2.3 subsection' 5 of' the' Code: In deviation from the'Corporate Governance Code, payments in the event of a' change' of' control' are' not' limited' to' 150%' of' the' severance' cap. A limit could jeopardise the company's' ability to attract highly'qualified'employees. In'line'with'the' Management' Board remuneration' structure, a change of control, particularly when board'members participate in the share option programme, moreover' increases' the YOC share price.'Not' only' the'beneficiaries of the share'option' programme but also'the'shareholders'profit'from'the'rise'in' the' share' price;' in' this' respect' the' interests of the Management Board and the' shareholders are' therefore' guaranteed'to'coincide.
• Point'5.1.2 subsection 1 and'Point 5.4.1 subsections 2 and 3 of'the'Code: Specifications'governing'the'members'of'the' Management'Board as'required'by'Point'5.1.'2 subsection 1 of' the' Code place unreasonable' restrictions' on' the' Supervisory' Board in'its' selection' of' suitable'Management' Board members.' The' same' is' true' for' the' target' member' profile' for' appointments' to' the' Supervisory' Board as' required' by' Point' 5.4.1'subsections 2' and 3.' We' take' the' firm' view' that' such' requirements' pose too' great' a' restriction' in' the' selection' of'a' suitable' Supervisory' Board candidate' in' each' individual' case.' Such' a' target'moreover' infringes' upon' the' right' of' our' shareholders' to' elect' the' members'of'the'Supervisory'Board.
• Point 5.1.2 subsection 2 sentence 3 of' the' Code: The' Supervisory'Board has not set an age limit for members of the Management Board.' The members of the Supervisory Board' believe that suitability for a' company management position' depends first' and' foremost on individual' ability' and'performance.
• Points 5.3.1, 5.3.2 and 5.3.3. of' the' Code: As the Supervisory' Board of YOC AG has only three members, it' would'not'be'practical'to'set up'committees,'and'especially' not' an' audit' committee' or' a' nomination' committee.' The' purpose of'the'audit'committee'as'proposed'by'the'Code'is' to'increase'the'efficiency'of'auditing.'This'aim'would'not'be' achieved' at' YOC' AG' as' nearly' all' members' of' the' plenum' would'have'to'sit'on'the'audit'committee.'Similarly,'nearly' all'plenum'members'would'sit'on'a'nomination'committee,' which' would' not' therefore' bring' any' improvement' in' preparations' for' Supervisory' Board recommendations regarding' candidates' proposed' by' the' shareholders'' election'proposals.
• Point 5.4.1 subsection 2 sentence 1 of' the'Code: No'age' limit' has' been' set' for' Supervisory' Board members.' A' candidate's'ability'to'monitor'and'act'as'a'fit'contact'for'the' Management' Board depends' first' and' foremost' on' his' or' her'individual'capabilities.
• Point 5.4.3 sentence'3 of'the'Code: The'recommendation' that' proposed' candidates' for' the' chairmanship' of' the' Supervisory' Board be' announced' to'shareholders' has' not' been' adopted.' Pursuant' to' Section 11' subsection' 1' of' the' company's' articles' of' association,' the' Supervisory' Board elects' its' chair' from' amongst' its' members.' Section 2 subsection' 1 of' the' rules' of' procedure' of' the' Supervisory' Board moreover' require that' the' chair' be' elected' in' the' first' meeting,' which is' convened automatically' after' the' appointment' of' the Supervisory' Board.' It' would' not therefore'be'possible'to'announce'the'proposed'candidates' in'advance.
•' Point 5.4.4' of' the' Code:' In the opinion of the Management' Board' and' Supervisory' Board,' it' may' in' certain' cases' be' useful' to' allow' former members of the Management' Board' to' move' straight' to' the' Supervisory' Board' and' there' also' to' take' on the' chairmanship' of' the' Supervisory' Board' or' of' certain committees.' Former members of the Management Board's'inside'knowledge'of' the' enterprise' improve'the' efficiency' of' control' exercised' by'the'Supervisory'Board.
•'Point 5.4.6'subsection 1'sentence 3'of' the' Code:' The' company' meets' the' recommendations' of' the' Code' regarding'remuneration'of'the'chair'and'deputy'chair'of' the' Supervisory' Board with' the' exception of' the' provisions' on' committees;' chairmanship' and' membership'of'committees'is'not'considered'separately' board' remuneration' is' fixed.'No' variable' remuneration' above'and'beyond' this' fixed'component'is'necessary'as' an' incentive' for' the' Supervisory' Board.' Such' remuneration' would' not' result' in' any' increase' in' motivation.
•'Point 7.1.2'sentence 4'of'the'Code:'The'company'shall' make'every'effort' to' comply' with' the' recommendation' that' the' consolidated' financial' statement' be' published' within'90' days' of' the'end' of the' financial' year' and' the' interim' reports'within'45'days'of' the'end'of' the'period' under' review;' however' compliance' cannot , in' the' light' of'the'extensive'scope'of'consolidation , be'guaranteed.
Berlin,' D e cember'2010
YOC'AG The'Supervisory'Board The'Management'Board
The'Share
2010:\$the\$year\$of\$the\$YOC\$share
Interest' in' the' YOC share' rose' considerably' at' the' start' of' the' 2010' financial' year' as' the' capital'market' recognised' the' opportunities' on' our' market' in' general' and' the' potential' of' the' YOC' Group' in particular.' The' share' price' consequently' experienced'a' strong' rise'over' the' trading'year' from'just'EUR'13.00'at' the' start'of' the'year' (low'of'12.53'on'04' January' 2010)'to'an'annual'high'of EUR 46.37'on'22 February 2010. After'such'major'growth'in'such'a'short'period of'time,'the'YOC' share'price'subsequently'stabilised over'the'remainder'of'the'year.
Over'the'months'that'followed,'the'share'price'remained'relatively'constant'at'between'EUR'30.00'and'EUR'40.00.'It'closed' on'30'December'2010'at'EUR'34.00'(previous'year:'EUR'11.80).'An'overall'increase'of'188%'could'therefore'be'reported'for' the'2010'financial'year'together'with'performance'of'4%'for'the'same'period.
Concentrating'on' the'segments'mobile' technology'and'media'over' recent'years'has'set' the' right strategic' focuses'in' the' YOC'Group.'The'company's'platforms'and'products'exactly'reflect'current'demands'on'the'market'and'offer'a'firm'basis'for' further'growth'in'the'future.
| 23.32%'free'float | 20.49%'Management'Board |
|---|---|
| 0.79%'management'and'Supervisory'Board members | |
| 1.11%'YOC'AG'(treasury'stock) | 15.56%'Schwetje'Invest'GmbH |
| 6.88%'dkam'GmbH | |
| 9.18%'IP'Concept'Fund'Management'S.A. | |
| 9.49%'Fidelity'Funds'SICAV | 13.17%'DIH'Deutsche'Industrie'Holding'GmbH |
| ► Shareholder'structure'as'at'31'December'2010 |
YOC\$shares\$in\$the\$first\$quarter\$of\$2011
The'market'for'the'YOC'share'was'relatively'volatile'in'the'first'quarter'of'2011.'Over the'first'few'weeks,'the'share'price' fell'below'the'closing'price'for'the'2010'financial'year.'13'January'2011'saw'a quarterly'low'of EUR 29.66;'the'price' subsequently'stabilised.
Within'just'a'few'days'in'early'February'2011,'the'share'price'then'rose'to'a quarterly'high'of'EUR'41.90'(09 February 2011)' − performance'of 23%.
Unrest in'North'Africa'did'not'affect'performance'of'the YOC share.'In'midHMarch,'however,'the'situation'changed.'The' devastating'earthquake'in'Japan'and'the'resulting'tsunami'and'nuclear'problems'cause'the'YOC'share'and'other'technology' securities'to'fall'significantly.'At EUR 30.80','the'share'price'was'nevertheless'above'the'quarter's'low of 13 January'2011.
Following'publication'of'the'preliminary'results'for'the'2010'financial'year,'the'YOC'share'price'began'to'rise'again'on'17' March'2011'to'reach'nearly'EUR'35.00.
The'share'closed'on'31'March'at'the'end'of'the'first'quarter'of'2011'at'EUR'36.97'with'a'performance'of'8.7%.
| 350% | ||||||||
|---|---|---|---|---|---|---|---|---|
| 300% | YOC\$AG | TecDax\$ | ||||||
| 250% | +168.8% | Performance\$Index | ||||||
| 200% | 04'Jan'2010 | 12.76'euros* | 818.27'points | |||||
| 150% | 31'Mar'2011 | 34.30'euros* | 930.61'points | |||||
| 100% | +13.7% | Change | +168.8%' | +13.7% | ||||
| 4'Jan' | 31'Mar' | 30'Jun' | 30'Sep' | 31'Dec' | 31'Mar' | |||
| 2011 | 2010 | 2010 | 2010 | 2010 | 2011 | 1 XETRA'closing'price * |
►YOC'share'and'TecDAX'Performance'Index'developments
- YOC'AG'+168.8%
- TecDAX'+13.7%
Analysts show\$growing\$interest\$in\$YOC
YOC'shares'have'become'far'more'attractive,'particularly'for'international'investors,'since'the'successful'move'to'the'Prime' Standard'at'the'end'of'April,'2009.'Like'Deutsche'Bank'in 2009,'Close'Brothers'Seydler'Bank'also'took up'coverage'with'a' purchase'recommendation'in'2010.
Continuous\$and\$transparent\$investor\$relations
YOC AG constantly'strives'to'strengthen'and'extend'contact'with'investors'and'analysts.'The'company'sees'transparent' financial'market'communication'as'a'key factor'in'sustainably increasing'shareholder value. Management and'the'YOC'AG IR'officers'therefore'participated'in'a'number'of'investor'and'capital'market'events'again'last'year,'and'held'numerous' meetings with'investors'and'analysts. The'YOC'Group'presented'its'business'model'and'excellent'operating'results,'and' explained'its'planned'strategic'development.
In'2011,'the'company'will'as'usual'be'holding regular'telephone'conferences and'attending'investor conferences'and'road shows'to'talk'to'analysts'and'investors'about'the'company's'development'and'keep'them'upHtoHdate'with'the'key' indicators'and'strategic'objectives.
Further'financial'information'can'be'found'in'the'"Investors'Relations"'section'of'the'YOC'Group'homepage'at' www.yoc.com.
Group#Management#Report
| Market#environment53 | |
|---|---|
| Scope#of#service57 | |
| Business#development63 | |
| Development#of#profit69 | |
| Development#of#net#assets#and#financial#position73 | |
| Forecast#report76 | |
| Risk#report78 | |
| Inspection#and#risk#management#report#on#the#accounting#process82 | |
| Information#on#shares83 | |
| Management#Board explanatory#report86 | |
| Explanation#of corporate#governance87 | |
| Remuneration#report91 | |
| Important#events#after#the#balance#sheet#date92 | |
| Insurance#of#the#legal#representatives92 |
OUR# CENTRALLY# CONTROLLED## ADSERVER# PROCESSES# MORE# THAN# 100# MILLION# MOBILE# ADVERTISING# REQUESTS# VIA THE# YOC# MEDIA# AND# LONGW RANGE#NETWORKS#EVERY#DAY.
Market#environment
International\$mobile\$telephone\$market:
The\$ telecommunications\$ market\$ is\$ undergoing\$ a\$ significant\$ phase\$ of\$ transformation\$ < stationary\$ and\$ mobile\$ broadband\$ penetration\$ as the\$ basis\$ and\$ driving< force\$for economic\$growth
The# number# of# mobile# phone# connections# worldwide# has# doubled in#the#past#five#years. In#2011, it#is#set#to#increase# by# a# further 10%# to# equal# 5.6# billion.# At# the# end# of# 2010,# there# were# approximately# 650# million# mobile# phone connections in# the# EU.# This# represents# a# yearWonWyear# increase# of# nearly# 3%.# Almost# a# third# of# users# use# UMTS.# The# majority# of# mobile# phone# contracts# in the# EU# can# be# found# in# Germany# where# there# were approximately# 111# million# at# the# end# of# 2010# (source:# European# Information# Technology#Observatory, 2010).#
As# a# hub# of# information# and# communication technology# (ICT), Germany#is#in#sixth#position#for#stationary#broadband# penetration#in#the#population#with#30.4%#(Denmark#has the# best# global# performance# with# 38%).# According# to# the# Broadband# Monitoring# Report,# the# implementation# of# the# broadband# strategy# by the# German# Federal# Government# will#be#a#success:#by#the#end#of#2014,#75%#of#all#households# should have# internet connections# with# a# speed of# 50# megabits# per# second.# Internet# traffic# is# set# to# rapidly# increase# in# coming# years,# both# for# fixed# and# mobile# networks.#On# the#mediumWterm,#nextWgeneration#networks# (NGA)# will# be# introduced in# order# to# provide# connections# with# speeds# of# over 100# megabits# per# second# for# new# applications# (source:# Fifth# National# IT# Summit:# An# International# Comparison# of# the# ICT# Industry# in# 2010.# Federal# Ministry# of# Economics and# Technology / TNS# Infratest#Business#Intelligence:#Monitoring#Report#Germany# Digital,#2010).
Smartphones\$< the\$drivers\$of\$mobile\$internet
In# 2010,# every# fifth# mobile# phone#sold# in# Germany# was# a# smartphone#with#mobile#internet#access#(5.6#million#mobile# phones)#(source:#Fifth#National#IT#Summit:#An#International# Comparison#of#the#ICT#Industry#in#2010.#Federal#Ministry#of# Economics# and# Technology / TNS# Infratest# Business# Intelligence:#Monitoring#Report#Germany#Digital, 2010).#
According# to# comScore,# 23%# of# all# consumers# in# Germany# were#smartphone#users#in#November#2010#and#this#trend#is steadily# increasing.# In# 2010,# the# number# of# new# smartphone# users# increased# by# 5.1# million,# roughly# equating to#a#total#of#13#million#users.
2010#was#also#the#year#in#which#3G#standard#became#a#key# factor#in#the#success#of#mobile#internet#("inflection#point").# According#to#Morgan#Stanley,#the#global#penetration#rate#in# 2010# was# 21%.# In# the# US,# the# number# of# people# using smartphones,#apps#and# browsers# doubled# to# 38%# (source:# Morgan#Stanley,#Internet#Trends,#2010).#
Use\$of\$mobile\$internet\$and\$apps\$ reaches\$critical\$mass
62.4#million#people#within#the#GermanWspeaking#residential# population# have# a# mobile# phone# in# their# home# W this# corresponds#to#nine#out#of#ten#people#(88.5%).#According#to# the#current#AGOF#mobile# facts#2010,#9.13#million#Germans# aged#14#and#above#are#included#among# the#unique#mobile# internet# users.# This# means# that# 14.6%# of# mobile# phone# owners# in# Germany# have# accessed# a# mobileWenabled# website# within# the# last# 30# days# during the# survey# period# (source:#AGOF#e.V.#/#mobile#facts#2010).
Total#population# 70.51#million
Mobile#phone#users Total:#62.38#million
UniqueMobile#users Last#30#days:#9.13#million
► Key#data#for#mobile#use#in#Germany Source:#AGOF#e.V.#/#mobile#facts#2010
It#is#expected# that# the# number# of#mobile#internet# users#in# Germany# will# have# increased to# 35# million# by 2014.# By# 2019,# threeWquarters# of# German# mobile# phone# users# will# use#the# internet on# their# mobile on# a# daily# basis# (source:# Fifth# National# IT# Summit:# An# International# Comparison# of# the# ICT# Industry# in 2010).# Federal# Ministry# of# Economics# and# Technology# /# TNS# Infratest# Business# Intelligence:# Monitoring#Report#Germany#Digital,#2010).#
For# users# who# surf# the# internet# on# their# mobile,# mobile# internet#has#become#an#integral part#of#everyday#life.#They# use mobile# internet# much# more# frequently# than just# one# year#ago.#Today,#43%#of#those#surveyed#use#their#mobile#to# surf# the# internet# at# least# once# a# day# (2009:# 33%).# Trends# such#as#wikis,#social#networking#
sites,#Twitter#and#blogs#have#become#increasingly#popular,# primarily# amongst# young# mobile# internet# users:# 57%# of# those who#use# twitter#would# rather# tweet#on# their#mobile# than#on#a#stationary#computer#(source:#Mobile#Web#Watch.# Accenture, 2010).
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Telephone#calls SMS MMS Mobile#internet#access#(total) Internet#via#a#standard#connection Internet#via#a#broadband#connection Internet#via#WWLAN/hot#spots
►Mobile#Web#Watch DE A CH###All#figures#in#% Source:#Mobile#Web#Watch,#Accenture, 2010
The# YOC# "Mobile# Indicator"# study# series# reveals the# increasing# significance# of# mobile# internet:# 74%# of# mobile# internet#users#questioned#can#not#imagine#daily#life#without# their mobile# phone# and 83%# notice# mobile# advertising.# Mobile# commerce# and# locationWbased# services# are# on# the# up:#57%#of#users#have#already#shopped#on#their#mobile#and# 70%#use#the GPS for#navigation.#In#addition#to#this,#mobile# internet# users# represent# an# extremely important# target# group#for#advertising.#Within the#YOC#media#network,#93%# of# mobile# surfers# are# between# 14# and# 49# years# of# age# (source:#YOC#Mobile#Indicator,#August#2010).
The# digitalisation# trend has# been# further#enhanced# by# the# success#of#mobile#internet.#Whilst#100#million#people#surfed# the# internet# on# their# mobile# five# years# ago,# this# figure# increased# to# 500# million# in# 2009# with# people surfing# the internet# on# their# laptops,# iPhones# etc. In# 2014,# PricewaterhouseCoopers# expects# that# 1.4# billion# users# worldwide# will# have mobile# internet# access# (source:# PricewaterhouseCoopers,#Global#Entertainment#and#Media# Outlook#2010W2014).
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I# can# not# imagine# my# daily# life# without# the# internet# and# mobile#phones
I# have# become# reliant# on# the# internet# and# mobile# phones for#my#current#business#activities
In#the#near#future,#mobile#internet#will#become#essential#to# me#for#business#payments#and#banking#transactions
Without# the# internet# and# mobile# phones,# I# would# not# be# able#to#maintain#contact#with#my family#and#friends
►Mobile#and#digital#networking
Source:#YOC#Mobile#Indicator,#August#2010,#mobile#internet#survey# within#the#YOC#Media#Network,#N=876
The#internet#does#not#only#dominate#advertising#revenue,#it also#forms#an#increasing#part#of#consumer#spending,#which# is# primarily# due# to# the# use# of# the# mobile.# In# all,# a# good EUR 11.3# billion will# be# spent# on# internet# access# in# 2014# and# the# costs# for# both# fixed# network# connections# and# mobile# access# charges# are# set# to# rise# in# coming# years (source:# German# Entertainment# and#Media# Outlook# 2010W 2014).
In# 2009,# EUR 42# billion# was# spent# worldwide on mobile# internet# access# and this# figure# is# set# to# increase# to# EUR 79 billion# by# 2014.# With# a# penetration# rate# of# 21%,# Germany# is# in# third# position# by# international# comparison,# significantly# behind# South# Korea# (85%)# and# Japan# (77%).# Germany# was# the# international# forerunner# in# the# increase# of# "digital# dividends".# In# 2010,#turnover# from# mobile# data# services# increased# by# 8%# in# Germany# to# equal EUR 5.8 billion#(source:#Monitoring#Report#Germany#Digital# 2010,#Federal#Ministry#of#Economics#and#Technology#/#TNS# Infratest#Business#Intelligence).
Revenue\$ forecast\$ for\$ mobile\$ marketing\$ and\$ mobile\$ advertising
Mobile# advertising# (eMarketer definition:# display,# richW media/video,# search functions# and# text# messages)# has# achieved#a#breakthrough#in#digital#advertising.#In#2010,#USD# 743# million# was# spent# on# mobile# advertising# in# the# US# (representing#a#79%#increase).#According#to#a#forecast#
from#eMarketer,#approximately#USD 1.1#billion#is#expected# to#be#spent#in#the#US#in#2011#and#more#than#USD 2.5#billion# in 2012#(source:#eMarketer,#2010).
USD 416.0,# USD 743.1,# USD 1102.4,# USD 1501.3,# USD 2036.8,#USD 2549.5
► US#Mobile#Ad#Spending#2009W2014 Source:#eMarketer,#2010
Informa# predicted# that# the# global# market# for# mobile# advertising# would# reach# USD 3.5# billion# in# 2010,# if# the# market#continued# to#grow#rapidly.#Revenues amounting# to# 24 billion#are#already forecast#for#2015.#The#main#factor#for# the# growth# in# the# past# 12# months# is# attributable to# the# performance# of# the# two# most# important# global# players,# Google#and#Apple.#In#coming#years,#it#is#expected#that#the# mobile#ad#revenues#for mobile#operators#will#fall#from#26%# to# 20%# and# close# partnerships# with# specialised# mobile# companies# will# therefore# be# forged# (source:# Informa,# Mobile#Advertising#Study,#2010).#
Affiliate\$marketing:\$current\$developments
In# the# past# year,# digital# media# sales# figures# represented 24%#of#global#branch#sales.#In#2014,#it#is#expected#that#33%# of# advertising# costs# will# be# spent# on digital# media.# The# economic# crisis# has# accelerated# this# process in# every# market:#whilst#global#advertising#sales#decreased#by#12%#to# USD 405# billion# in# 2009,# online# advertising# increased# by# 4.3%# to# almost# USD 60.6# billion.# By# 2014,# PricewaterhouseCoopers# expects# an# average# increase# in# online#advertising#sales#of#11.4%#per#year.#
With# revenues# of# USD 103.8# billion,# the# internet# has# therefore# become# the# second# most# important# advertising# medium# in# the# world# after# the# television# (USD 195.7# billion).#The#advertising#revenue#share#from#this#lies#at#20%# (2009:# 15%)# (source:# PricewaterhouseCoopers,# Global# Entertainment#and#Media#Outlook#2010W2014).
In Germany,# it# is# expected# that# online# advertising will# be# amongst# the# largest# German# advertising# mediums that# is also# set# to# grow by# a# disproportionately# high# amount# in# 2011#and it#is#anticipated#that#its market#share#will increase# to# 32%# by# 2014# (source:# PricewaterhouseCoopers,# Global# Entertainment#and#Media#Outlook#2010W2014).#
In#relation#to#household#internet#access,#Germany#is#in#sixth# place#by TNS#standards and#has#improved#by#4.2%#to#79.1%# (source:# Fifth# National# IT# Summit:# An# International# Comparison#of#the#ICT#Industry in 2010.#Federal#Ministry#of# Economics# and# Technology# /# TNS# Infratest# Business# Intelligence:#Monitoring#Report#Germany Digital,#2010).#
The# predicted# sales# for# online# trade# are# positive:# 84%# of# online# traders# expect# increasing# sales# for# 2011.# By# European#comparison,#Germany#is#in#7th#place#with#regards# to#the#proportion of#online#shopping#(source:#Global#B2C#EW Commerce#Report,#yStats.com,#2010).
The#investment#climate#has#also#improved# for#2011,#which# was# recently# published# in# the# business# climate# study# EW Commerce# 2010/2011# by# the# ECC# commerce.# For# this# reason,# 27.6%# of# traders# want# to# invest# more# money# in# affiliate# marketing# in# the# coming# year# (source:# Business# Climate#in#EWCommerce#2010/2011,#Become#Europe#GmbH# in#cooperation#with#the#ECC#Commerce#Cologne,#2010).#
Due#to#the#vast#increase of#smartphones#and#cheap#mobile# phone#tariffs,#the#potential#for#mobile#affiliate#marketing#is# also#increasing.#Mobile#websites#and#free#apps#are#perfectly# suited# for# banner# advertising# and# the creation# of# longW range.# It# is# therefore# expected# that# the# first# significant revenue will# be# generated#from mobile# affiliate#marketing in# the#middle# of# 2011,# particularly# for# classic# online# items# such# as# books,# music,# DVDs/CDs,# travel# tickets,# event# tickets# and flights# (source:# Affiliate# Marketing# Trends,# Markus#Kellermann,#2011).
A# further# important# trend# in# affiliate# marketing# is social# media.# In# the# US,# there# are# already# microWaffiliates:# using# the# traditional# form# of# recommendation# marketing,# Facebook#users# recommend#products or#services# to# friends# and# receive# commission# for# the# completion# of# a# sale W a# lucrative# market# with# almost# 500# million# active# Facebook# users#worldwide#(source:#Affiliate#Marketing#Trends,#Markus# Kellermann,#2011).
Anticipated\$revenue for\$affiliate\$marketing
According#to#the#German#Online#Marketing#Group#OVK,#the# total#expenditure# for# traditional#online#advertising,#affiliate# networks# and searchWword# marketing# in# Germany# saw# a# yearWonWyear# increase# of# 19%# in# 2010.# Therefore,# the# total# volume# of# online# advertising# exceeded# the# EUR 5# billion# limit#in#2010#for#the#very#first#time.#In#the#past#three#years,# gross# capital# investments# in# online# advertising# have# increased# by# a# total# of# 74%.#Within# the# area# of# traditional# online# advertising,# investments# have# almost# doubled# with# an#overall#increase#of#90%.
As# the# third# pillar# to# online# communication,# advertising# expenditures# on# affiliate# networks# accounted# for# EUR 339 million# in# 2010,# corresponding to# a# 10% increase (source:#Advertising#Investments#by#Segments,#OVK,#2011).#
Scope#of#service
Range\$of\$products\$
in\$the\$mobile\$marketing\$segment
Within# the# mobile# marketing# segment,# the# YOC# Group# provides# software# and# platforms# and# implements# their# products#for#the#efficient#integration#of#mobile#end#devices# (e.g.# mobile# phones,# smartphones# and PC# tablets)# to a# combination# of# media# and# communication# providers# such# as# advertisers,# operators,# media# groups# and# online# companies# on# the# basis# of# scalable# technological# developments.#The#mobile#marketing#segment#is# therefore# subdivided#into#the#three#product#areas: mobile#marketing,# mobile# internet# and# mobile# advertising.# The# valueWadding# chain# within# the# segment# ranges# from# the# planning# and# implementation#of#individual#mobile#marketing#solutions#in# mobile#marketing# to# the# creation#and# operation# of#mobile# internet#and#transaction#portals#(e.g.#mobile#commerce)#as# well# as# applications# within# the# product# area# of# mobile# advertising.#YOC#is#positioned#within# the#mobile#marketing# segment# and# considers# itself# the# European#market# leader.# Due# to# the# flexibility# of# the# system# software,# all# available# technologies# can# be# individually# combined,# therefore# offering# the# customer# uniform,# efficient# solutions.# The# mobile# marketing# segment# is# a priority# to# YOC# AG# and# its# subsidiary# companies# Sevenval# GmbH,# YOC# Mobile# Advertising# GmbH,# YOC# Mobile# Advertising# Ltd.,# YOC# Ltd.,# YOC#CEE#GmbH,#YOC#Spain,#S.L.#and#ubiyoo#Ltd.#
The\$mobile\$marketing\$product\$area
Within# the# mobile# marketing# product# area,# YOC# implements# mobile# marketing# products# for# branded# companies# and# service# providers# from# different# industries# on# an# international# level.# The# services# offered# by# YOC# include# planning# and# technical# implementation# as# well# as# the# longWterm# operation# of# mobile# systems.# Furthermore,# YOC# offers# customer support# and# an evaluation# of# implemented#measures# such#as# reporting,# success#analysis# and# market# research# results.# The# services# offered# in# this product# area are# used# across# all# industries and# include# companies# from# the# consumer# goods,# retail,# services,# financial# and# car# manufacturing# industries. YOC# therefore# implements#its#mobile#marketing#products# for#brands#such# as# CocaWCola,#MercedesWBenz,# Kraft# Foods,# Deutsche# Post,# Unilever#and#Opel.#Their#product#portfolio#ranges#from#the# combination#of#
advertising# communication# from# the# areas# of# television,# print# media,# radio# and# outdoor# advertising# with# mobile# communication# devices# (mobile# response# marketing),# to# direct#communication#with#consumers#via#mobile#networks# and#the#internet#(mobile#or#eWmail#push#marketing)#and#the# development# of# technological# applications# such# as# mobile# websites,#applications#and#locationWbased#services.#
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►Mobile#response:#Uncle#Ben's#Austria
The# implementation# of# mobile# marketing# measures# is# carried# out on# the# basis# of# uniquely# developed# technological#solutions#and#applications.#
YOC# creates# the# necessary# SMS# and#MMS# contingents# for# the# execution# of# mobile# marketing through# their inWhouse# operated# mobile# messaging# gateway.# YOC# functions as# a# telecommunications# services specialist in# this# area# with# a# focus# on# sending# SMS# and# MMS# messages,# including# for# trade# with# SMS# and# MMS# contingents, and# operates# as# a technical#service#provider#for#customers#from#a#wide#range# of# different# industries.# The# mobile# messaging# business# which#was originally# run#by#Brutus#Media#GmbH,#was# fully# bought#over by#YOC#AG#in#2007#and#integrated#into#YOC#AG# in#the#business#year#2010.
There#are#a#wide#range#of#different#technologies#which#can# be#used#for#mobile#marketing#today.#These#can#be#used#to# achieve# highlyWinteractive and# multimedia# communication# concepts# on# mobile telephones.# YOC# has# a# unique# technological# platform# on# which# all# available# technologies# can#be#flexibly#combined.#Thus,
one# solution# is# developed# for# every# project,# which# is# precisely# aligned# with the# respective target# group# and# its# media#usage behaviour.#Mobile#internet#portals#today#play# a# key# role# in the# implementation# of# the# mobile# channel# within the#corporate#communication#strategy.#A transfer#of# the#existing#brand#identity#and#an optimised#delivery of#all# content#to#different#end#devices#are#decisive# factors#in#the# success# of# the# mobile# presence.# YOC# therefore# makes# it# possible#to#implement individual#mobile#internet#presence,# which# is# optimised# for# the# specific# use# on# the# end#mobile# device.#The# company# therefore#operates an#extensive#end# device# database# which# is# constantly# being# expanded# and# the#end#devices#are#analysed#on#the#basis#of#800#criteria.
these# locationWbased# services# including# navigational# services,# traffic# reports,# city# services# and# shop# finders,# which# automatically# provide# the# end# user# with# the# appropriate#information# depending# on# their# position,# time# and#personal#data#for#the#respective#area#of#use.#Using#the# voice#and#video#call#technology# from#YOC,#informative#and# interactive call and#video#messages#can#also#be#transmitted.# The# combination# of# sound,# imaging# and# telephony# increases# the# possibility# of direct# interaction# between# the# customer# and# the# brand# and# creates a# generation# of# awareness#with#high#viral#potential.
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► YOC#smartphone#applications
The# YOC# Smart# Web# App, developed# in# the# business# year# 2010,# offers# exceptional optimised# display features.# This# currently#unique innovative#product#combines#the#benefits# of# mobile# websites# and# mobile# applications# and# behaves# like#a#native#application#in#the#respective#operating#system# and# end# device.# Furthermore,# YOC# also# provides# native# applications#for#all#platforms#and#end#devices,#for#example,# iOS,#BlackBerry,#Android#and#the#Windows#Phone#7.
The#development#of#locationWbased#services#is#also#gaining# increasing#levels#of#attention.#YOC#implements#
► Mobile#SEM#for#the#generation#of#visits,#leads#and#sales
The# mobile# is# also# gaining# increasing# significance# as# a# transaction# medium.# YOC# uses# software# to# carry# out# different# transactions# using# mobile# payment# procedures,# mobile#coupons#or#mobile#tickets. Furthermore,#due#to#the# increased# demand# for# mobile# internet,# YOC# also# offers# its# customers#mobile#SEM#(search#engine#marketing)#as#well#as mobile#SEO#(search#engine#optimisation)#measures.#Mobile# SEM# defines# the# switching# of text# and# image# advertisements on the# results# pages and# the# content# network#of#search#machines#in#mobile#internet#by#booking certain#keywords.#The#aims#of#mobile#SEM#primarily#include# the# development# of# a# longWrange for# mobile# portals,# the# generation#of#leads,#sales#and#visits#as#well#as#the#increase of#brand#presence#and#visibility.
The#primary# task#of#SEO# (search#engine#optimization)#is# to# achieve#and#maintain#a#good# ranking#in# the#search# results. Search# machines# are# also# the# most# important# source# for# gaining# new#website#visitors in#mobile#internet.#A# position# within# the# top# search# results# is# a# necessary# requirement.# Mobile#SEO#extends#the#method#of#"normal"#online#SEO#to# include# several# specific# aspects# of# mobile# internet.# These#
include# the# technical# framework and# other# behavioural# modes# of# the# mobile# user.# The# development# and# optimisation#of#clean#source#codes,#which#hold semantically# correct#mobile#portal#content,#leads#to#a#mobile#site#which# is#easily#accessible and#therefore#attractive#with#regards#to the# search# machine.# By# using different# mobile# SEO# measures,# YOC# is# able# to# increase#the# number# of# website# visitors in#order#to#achieve#the#marketing#objectives#of#the# customer# and enhance# the# appeal# of# marketable# advertising# space,# which# therefore# means# higher# revenue# for#the#respective#portal#provider.#
Mobile\$internet\$product\$area
Within# the#mobile# internet# product# area,# YOC# implements# and# hosts# mobile# internet# portals# and# applications# on# the# basis#of#FIT#technology#and#licenses#the#necessary#software# to# its# customers.# Pure# internet# portals# which# are# not# optimised# for#calls#via#mobile# telephone#devices,#are#often# unsuitable# for# calls# on# mobile# phones due# to# the# volume,# processing# and# display# of# data.# However,# the# mobile# internet#portals#created#on#the#basis#of FIT#technology#from# YOC,# are# specifically# designed# to# be# used# on# mobile# telephone# devices.# In# this# way,# YOC# offers# to# create individual#mobile#websites,#with#content#that#may#partially# or# significantly# differ from# the# customer's# stationary# internet# website,# as# well# as the automated# conversion# of# stationary# websites# for#mobile# use.# In# both# cases,# YOC# inW house# developed# technology# is# used.# The# FIT# technology# developed#by#the#YOC#subsidiary#company#Sevenval#GmbH# allows# for#an#automatic#optimisation#of# stationary#content# for# mobile# end# devices# and# is# able to# react# quickly# and# innovatively# to# market# innovations,# for# example,# the# iPad# from#Apple#launched#in#2010.
The# multiWchannel# technology# can# optimise# stationary# content# for# any# end# device,# whether# a# mobile# telephone,# smartphone# or PC# tablet# and# therefore# optimally# support# the# respective# usability.# More# than# 800# renowned# mobile# portal# companies# including# the# publishing# group# Handelsblatt,# Postbank,# FAZ,# TWOnline,# Air# Berlin# and# WEB.DE# use# the#mobile#internet# technology# from# the#YOC# Group.# Whilst# just# a# few# years# ago, mobile# internet# exclusively#consisted#of#simple#informative services#such#as# stock# exchange# information,# weather# and# travel# information,#today#it#offers#complex#interactive#transaction# systems,# for# example,# mobile# banking,# mobile# social# community#networks#or#mobile#commerce#portals.#In#these# dataWsensitive# areas,# particularly# sophisticated# technology# is#essential#as#the#necessary#security#standards#for#account# access,# transfers# or# transactions# can# only# be# guaranteed# through#the#combination#of#different#technological building# blocks.#
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►Media#Markt#uses#YOC#products
The# installation# is# frequently# used# by# customers# for# securityWcritical# applications# within# the# area# of# mobile# banking.# This software# product# is# hereby# used# with# the existing#bank#IT#infrastructure#and#optimises#access#for#the# mobile# sales# channel.# High# internet# banking# security# standards are# also# guaranteed# on# mobile# internet# devices# using#this software.#
In#addition#to#mobile#portals,#YOC's#new#product#W the#"YOC# Smart# Web# App", also# offers# customers# a# browserWbased# application# which# combines# the# benefits# of# native# applications#with# those#of#mobile#internet.#The#YOC#Smart# Web#App#can#be#used#across#different#platforms,#however,# it# behaves like# a# native# application# in# its# design# and# operating# structure.# Using# the# YOC# Smart# Web# App,# publishers# can#run# all# operating# systems# and# end# devices# with# optimised# mobile# content# using# just# one# single# solution,#without#impairing the#usability#of#native#apps.#The# sales#channel#is#therefore#the#same#as#that#used#for#native# applications.#Using#soWcalled#app#store#connectors,#the#YOC# Smart#Web#App#can#be#used in#all#standard#app#stores.
Mobile\$advertising\$product\$area
In# the# mobile# advertising# product# area,# YOC markets# the# mobile# internet# portals# of# media# companies,# publishing# groups and independent# portal# operators# as# well# as# the# applications# for# internetWenabled# end# devices# and# generates# advertising# sales from these.# Throughout# the# course# of# targeted# mobile# marketing,# YOC# works particularly# closely both# with# media# and# advertising# agencies,#and#directly#with#advertising#companies#from#the# consumer#goods,#services#and#financial#industries.
YOC#mobile#advertising#is#therefore#used#for#brands#such#as# CocaWCola,#MercedesWBenz,#Intel,#Deutsche#Bahn,#Ford,#SAP,# Foot# Locker,# Fonic,# Lufthansa,# Manager# Magazin,# Citroёn,# Vodafone# and BlackBerry.# YOC# is# constantly# developing# innovative# advertising# concepts# in# order# to# remain# consistent with# technological# developments# and# steadily# increase#the#appeal of#advertising#material.
In#addition#to#the#MMA#standard#advertising#banners,#YOC# provides#its#customers#with#a#complete#range#of#richWmedia# advertising#formats#including#expandable#ads,#splash#screen# ads,# fullWsize#video#ads,#video# banners,# tandem#ads,# reveal# ads# and flip# ads.# Furthermore,# with# its# new product launched in# the# third# quarter# of# 2010# W the# YOC# Ad# Plus,# YOC#now#offers an#innovative#multimedia#inWapp#advertising# format#that#
was#specially#developed# for#use#in#applications#and#can#be# used#on#all#operating#systems.#By#contrast#to#other#mobile# advertising# formats,# the# YOC Ad# Plus# plays# all# richWmedia# content# within# the# advertisement.# During# use,# the# user# is# navigated#back# to# the#application#and#can#return# to# this#at# any#time.#This#offers#advantages#for#publishers,#advertisers# and# users# alike. No# other# mobile# advertising# format# incorporates the#target#group#into brand#communication#to# such#an#extent#and#this#therefore#gives#the#brand#enhanced appeal.
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►YOC#Ad#Plus#for#JACOBS#Krönung
A#technical#requirement#for#mobile#marketing#is#the#use#of# special# AdServing# technology# and# a# special# AdServer,# to# which# the#entire#YOC#marketing#network#is#connected#and# controlled on# a# central# basis.# The# AdServing# technology# developed# by# YOC# allows# for# an# optimum# display# of the# advertising# material# (for# e.g. banners)# which# is# perfectly adapted#to#suit#the#respective#screen#size#of#the#end#device.# Furthermore,# this# also# allows# for targeted# advertising according#to#certain features,# for#example,#the#end#device,# country# or# mobile# network# provider.# In# cooperation# with# the# mobile# network# operators,# the# YOC# AdServing# technology#also#allows#for#targeted#advertising#according#to# socioWdemographic#criteria#such#as#locationWbased#targeting# which#therefore#helps#to#significantly#reduce#scattering#loss.# Furthermore,# the# use# of# this# technology# also# allows# for# similar# functions# to# those# of# online# advertising# platforms# (for#example,#
campaign# administration,# monitoring,# optimisation,# multiW client#capability#and#comprehensive#reporting#functions) to# be# carried# out.# YOC# also# offers# this# technology# to# other# portal# operators,# independent# of# a# marketing# contract.# With# over# 250# mobile# websites# from# a# wide# range# of# different#industries in#their#portfolio,#YOC#has#access#to#the# largest#international#premium#marketing#network#in#mobile# internet# in# Europe.# This# network# also# includes# the#mobile# websites# and# applications# from# The# Independent,# the# Westdeutsche# Allgemeine# Zeitung,# wetter.com,# krone.at# and# the# mobile# websites from# Viacom and# the# Heise# magazine# publishing# company.# The# cost# of# the advertising# formats# used by# the# advertisers# is# carried# out# in# the# premium# segment on# a# flatWrate# and# costWperWthousand# basis.
One#thing#that#is#crucial#for#successful#marketing#is ensuring that# the# different# advertising# and# portal# operator# requirements# are# taken# into# consideration.# Only a# differentiated#approach# guarantees the# desired#effect.# For# this# reason,# in# addition# to# TKPWbased# premium# marketing, YOC#also#offers#its#customers#longWrange#and#performanceW based# marketing# solutions# on# the# basis# of# their# AdServing# technology.
The# longWrange# network# "ubiyoo"#founded# in# the# business# year# 2010, comprises# the# second# marketing# form# of# the# YOC#Group#and#closes#the#gap between#the#TKP#and#purely# successWbased# marketing.# ubiyoo# is# a# webWbased,# globally# aligned# selfWservice# technology# platform# which# brings advertisers# and# publishers# together# on# the# basis# of# a# variable# pricing# system# in# mobile# internet.# The# network# offers# advertisers# an# efficient# and# targetWorientated# switching# of# advertising# in#mobile# internet#on# the# basis# of# an#individuallyWaligned#CPC#or#low#TKP#pricing#model.#Using# ubiyoo,#publishers#can#determine# the#costs#of# their#mobile# website#quickly#and#easily.
The# centrallyWcontrolled# AdServer# ubiyoo# processes# more# than# 100# million# advertising# requests# every# day# via# the# premium#and#longWrange#networks.
PerformanceWbased# marketing# models# such# as# Cost# per# Click#(CPC),#Cost#per#Lead#(CPL)#or#Cost#per#Order#(CPO)#are# operated#via the#YOC#subsidiary#W belboon#adbutler#GmbH.# In#stationary#internet,#belboon#has#the#third#largest#affiliate# marketing#network#in#Germany#and#established#one#of#the# first#mobile#affiliate#networks#in#the#world#in#2009.
Product\$range
in\$the\$affiliate\$marketing\$segment
Within the# affiliate# marketing# segment,# the# YOC# Group# provides# an# affiliate# network# through# their# subsidiary# company# belboonWadbutler# GmbH# for# advertising# companies# and# providers# of# digital# media# networks# under# the# "belboon"# brand. This is# already# the# third# largest# affiliate#marketing#network#with#a#successWrelated#payment# system#within#the#GermanWspeaking#area.
An# affiliate# network# provides# an# internetWbased# marketplace# for# the# procurement,# registration# and# processing# of# successWbased# digital# advertising# and# sales# measures# for# advertisers# (publishers/merchants) and# sales# partners# (publishers/affiliates).# In# this# marketplace,# advertisers# provide their# offers# for# publishers# within# the# scope# of# a# partner# programme.# This# contains# for# e.g.# the# granted#success#commission rate for#defined#successes (for# example#sales#or#user#registrations)#as#well#as#the#available# advertising#material.# Publishers# can# apply# to# participate# in# these# partner# programmes# and# incorporate the# provided# advertising material into# their# digital# media# (websites,# newsletters,#etc.)#and#therefore#generate#profit.#In#addition# to# the# conflation# of# the# pool# of# registered#advertisers#and# publishers# on# the# marketplace,# YOC# also# uses# the# technological#platform# to#control# the#settlements between# parties,# the#provision#of# the#necessary# tracking# technology# for#the#acquisition#and#allocation#of#the#target#commissions as#well#as#the#provision#of#a#highlyWdeveloped#management# and#control#platform#for#the#affiliate#marketing#activities#of# the#marketplace#participants.
The#advertisers#primarily#include#providers#of#products#and# services#which# are# aligned# with# the# end# customer#for# e.g. online# shops,# banks,# insurance# or# telecommunication# providers.
The# publishers# include# the# operators# of# all# kinds# of# websites,# newsletter# distributors and# selfWemployed# persons# specialised# in# searchWmachine# marketing.# The services# carried# out# by# the# YOC# Group# are# usually# remunerated# on# a# successWrelated basis# according# to# the# actual# processed# commission payments.#In#addition# to# the# provision#of#these#services#within#stationary#internet,#YOC#is# one#of#the#first#networks#to#offer#its#partners#the#possibility# of#affiliate#marketing#in#mobile#internet via#belboon.#
Some# of# the# customers# within# the# affiliate# marketing# segment# include# XING# AG,# DailyDeal# GmbH,# Kabel# Deutschland# Vertrieb# und# Service# GmbH# &# Co.# KG.# Vodafone# D2# GmbH,# Fox# Mobile# Distribution# GmbH# (Jamba),# AXA# Versicherungen,# Deutsche Kreditbank# AG# (DKB),# Neckermann# Versand# Österreich# AG# and# Tchibo# direct#GmbH.
Product\$range\$
in\$the\$mobile\$B2C\$services\$segment
In# the# mobile# B2C# Services# segment# the# subsidiary# companies#Moustik S.p.r.l# and#Moustik#GmbH# offer valueW added# mobile# services# and# entertainment# services# for# mobile#customers#in#different#European#countries#with#the# support# of# YOC# AG.# Their# product# portfolio# includes# background# images,# games,# animations,# logos,# videos,# poems# and# ring# tones# which# are# sold# directly to# the# end# consumer# via# the# mobile# device# on# a# oneWoff# or# subscription#basis.
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► Comprehensive#mobile#content#portfolio
Furthermore,#content#is#created#and#licensed#to#be#sold#via# the#mobile#device#to third#parties, for#example#portals#and# network#operators.#In#this#way,#YOC#is#supported#by#its#own# technological# infrastructure# and# collective# knowledge# on# the# target# group# requirements# of# the# registered# users,# whereby# the# target# group# of# the# mobile# B2C# services# is primarily the 14W29#age#group.
Business#development
Business\$development\$
in\$the\$mobile\$marketing segment
The#YOC#Group#is#present#within#the#key#markets#in#Europe# with# offices# in# Germany,# Austria,# Great# Britain,# Spain# and# France.# The# Group# offers its#mobile# marketing#services# to# all# of# these# markets.# On# the# basis# of# this# dominant international# position,# the# YOC# Group# has# been# able# to# reinforce# and# internationally# expand# its# position# as# Europe's# leading# provider# of#mobile# technology,#especially in#2010.
In#the#business#year#2010,#the#YOC#Group#experienced the# highest# new# customer# profits# since# the# founding# of# the# company.#Sustainable investment#was#also poured#into#the# existing# customer# base in# the# business# year# 2010.# As# a# result,# the# YOC# Group# increased# their# turnover# in# the# key# mobile# marketing# segment by# 27%# to# around# EUR 22.2 million.# In# this# way,# the# company# once# again# enjoyed aboveWaverage# profit# due# to the# increasing# significance# of# mobile# communication# solutions# for# the# advertising#industry#
Some# of# the# new# customers# to# use# the# platforms# and products#from the#YOC#Group#include#attractive#companies# and# brands# such# as# Air# Berlin,# Unilever,# Milka,# Saturn,# MoneySupermarket.com,# Miele,# Waitrose,# the# City# of# Vienna,# Haymarket,# Swiss# Airlines,# Ergo# Direct,# VHV# Versicherungen,#Familia,#Central,#herold.at#and#OTTO.
Furthermore,#existing#national#and#international#customers# including CocaWCola,# MercedesWBenz,# Kraft# Foods,# Adam# Opel# and# Deutsche# Post also# use# the# mobile# marketing# products#offered#by#the YOC#Group.
The drivingWforces#behind#this#immense#increase#in#demand# in# the# business# year# 2010# include external# factors# such# as# the#increasing#popularity of#mobile#communication#devices,# faster transmission# speeds# through# the# enhanced# use# of# UMTS# and# the# rapidly# increasing# use# of# smartphones# and# therefore# greater use# of# mobile# internet.# Internal# factors# also played# a# decisive role, for# example, the# continued# development of# innovative# products# and# the#expansion# of# the#licensing#business.
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► Diverse#applications#during the#Handelsblatt#reWlaunch
In# total,# more# than# 250# new# mobile# portals# were# implemented on#an#international#level#by#the#YOC#Group#in# the#business#year#2010#including#portals# for Air#Berlin,#the# Heise#magazine# publishing# company,#VW# Bank,#the# City# of# Vienna,# MoneySupermarket,# Miele,# Guía# del# Ocio,# Haymarket# and# metro.uk# and# over# 90# mobile# applications# using#YOC#technology.
Publishers#and#brands#essentially#have#two#types#of#mobile# portals available# to# them.# These# include# browserWbased# mobile# portals# and# native# applications.# The# latter# are# primarily# distinguished# through outstanding# access# capabilities#to#specific#endWdevice#functions#such#as#GPS#for# navigation#and# therefore#locationWspecific#applications#and the#camera.#The#resulting#high#level#of#usability#makes#apps# particularly#attractive# for#many#publishers#and#advertisers.# However,# in# comparison# to# mobile# websites,# applications# have#one#disadvantage#which# should#not#be#overlooked:#a# low#range.#This#effect#is further#reinforced by#the#increasing# fragmentation# of end# devices# and# app# stores.# In# order# to# benefit# from# maximum# range# within the# area# of# smartphones,# more# and# more# publishers# and# advertisers# are#adapting#their#apps#to#several#or#even#all#app#stores.#As# native# apps#must# be# newly# developed# for# every# operating# system,# this# is# a# very# costWintensive# and# timeWconsuming# strategy.
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Group Management Report
-
Consolidated financial statement
To# create# a# solution# to# this# for# our# customers,# YOC# developed# the# YOC# Smart# Web# app# in# financial# year# 2010.#The#YOC#Smart#Web#app#is#an#innovative#product# which#uniquely#brings#together#the#advantages#of#native# applications# and# of# mobile# internet.# The# product# is# delivered# crossWplatform# but# it# behaves# in# design# and# operating# structure# like# a# native# application.# Therefore,# using# the# YOC# Smart# Web# app,# publishers# have# only# single# solution# for# operating# all# operating# systems# and# terminals#with#optimised#mobile#content#without#having# to#take#away#from#the#usability#of#native#apps.
In# financial# year# 2010# YOC# Group# widened# its# product# range#in#the#mobile#marketing#segment.#By#creating#the# global# coverage#market# place# ubiyoo,# the# company# has# closed# the# gap# between# TKP# and# purely# performanceW based# marketing# and# now# offers# its# customers# the# complete# spectrum# in# mobile# marketing# solutions# worldwide.
The# network# offers# advertisers# the# opportunity# to# operate#efficient#mobile#internet#advertising#on#the#basis# of# an# individually# definable# CPC# (cost# per# click)# or# CPM# (cost#per#mille)#price#model.#Above#all# these#advertisers# benefit# from# a# broad# range# and# various# targeting# options,# e.g.# according# to# country,# mobile# network# provider,# end# device,# time# of# day# or# channel# topic# (community,# sport,# new,# etc.).# On# the# other# hand,# ubiyoo#enables#publishers#the#carry#out#a#fast#and#simple# monetary# assessment# of# their#mobile# internet# websites# and# applications.# The# advanced# AdServer# technology# of# YOC# AG# therefore# ensures# the# optimised# delivery# of# advertising#media.# Furthermore,# the# system# guarantees# publishers# soWcalled# best% performing campaigns# which# have#particularly#high#click#rates#and#CPCs#and#thus#also# generate# a# high# level# of# sales.# The# mobile# coverage# business# began# very# successfully# and# is# operated# by# ubiyoo# Ltd# from# its# head# office# in# London.
YOC# Group# expanded# its# publisher# portfolio# internationally# in# the# premium# marketing# segment.# It# closed#exclusive#marketing#deals#with#titles#including#RP# Online,# Eurosport,# Wetter.com# iPhone# app,# Herold.at,# The# Sunday#Times,# onAir,#Grupo# Vocento,#Heise# iPhone# app,# Sony# Ericsson,# Textilwirtschaft,# Stuttgarter# Zeitung# and#Lebensmittelzeitung.net.
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►1.#Click#to#expand
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►2.#View#of#the#enlarged#banner
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- ►3.#Link#to#the#mobile#website#of#Austrian#Airlines
- ►Innovative#advertising# format.#Expandable#Ad#by#YOC
In# financial# year# 2010,# YOC# Group# also# recorded# continuous# growth# in# website# views# and# thus# the# available#ad#impressions#on#marketed#mobile#portals#and# applications.#To#this#end#the#past#financial#year#was#also# used# to# develop# innovative# advertising# formats# thus# further# strengthening# the# Group's# position# as# Europe's# leading#premium#marketer.
Alongside# the# Expandable# Ad# Interactive,# the# Splash# Screen#Ad,#Showroom#Ad,# the#Video# Banner,# Reveal#Ad# and# Flip# Ad,# YOC# Group# launched# an# innovative# advertising# format# with# the# YOC# Ad# Plus# in# September# 2010,# which# represented# a# new# dimension# in# mobile# advertising.# The# advertising# format# includes# videos,# photo#galleries#and#360°#views#to#name#a#few#and#can#be# run#with#all#operating#systems.#For#advertisers#this#form# of# mobile# advertising# represents# a# new# dimension# in# interactive#communication.#It#includes#detailed#targeting# options#which#ensure#that#the#desired#target#groups#are# reached.# Using# Ad# Plus# the# advertiser# can# combine# six# targeting# criteria# at# the# same# time# and# practically# eliminate# scattering# losses.# Targeting# options# based# on# operator,# location,# age# and# time,# as# well# as# frequency# capping# can# be# selected# so# that# the# advertiser# can# determine# precisely# which# mobile# application# the# advertising# media# is# superimposed# onto.# The# combination# of# such# a# highWquality# advertising# format# with#such#exact#targeting#criteria#is#a#world#first.
By# capturing# new# submarkets,# developing# innovative,# standardised# products# and# distributing# them# internationally,#in#financial#year#2010#YOC#Group#created# the#basis#for#further#dynamic#and#scalable#growth#in#the# mobile# marketing,# mobile# internet# and# mobile# advertising#segments.
The\$ Company's\$ Performance\$ in\$ the\$ Affiliate\$ Marketing\$Segment
The# entire# online# advertising# market# has# become# the# thirdWlargest# advertising# medium# after# television# and# print#media.#This#development#clearly#shows#how#much# potential# this# market# has.# Against# this# background# the# YOC# Group# operates# the# thirdWlargest#affiliate#marketing#network#in# the#GermanW speaking# world# through# belboonWadbutler# GmbH.# Various#advertisers#are#currently#operating#around#1#300# national# and# international# partner# programmes# in# the# affiliate# network.#Among# the#advertisers#are# companies# such#as#XING#AG,#Neckermann,#Axa#Insurance,#Vodafone,# Roche#Pharma#AG,#mydays#GmbH,#DKB#Bank#and#Holiday# Check# AG.# The# affiliate# network# of# belboonWadbutler# GmbH# include# around# 65# 000# publishers.# YOC# Group's# Affiliate#Marketing# reported# sales#of##EUR#6.7#million#in# 2010:# a# rise# of# 3%# against# the# figure# for# the# previous# year# (EUR# 6.5 million).# Financial# year# 2010# was# shaped# by#the#integration#of#the#Hiddenhausen#location#into#our# main#location#in#Berlin#and#the#subsequent#restructuring# of# personnel,# as# well# as# by# the# introduction# of# new# products,# namely# retargeting,# gift# voucher# marketing,# SmartFeeds# or# SmartLinks.# As# of# the# fourth# quarter# of# 2010#all#belboonWadbutler#business#is#carried#out#at#our# main# location# in# Berlin.# We# continued# to# pursue# our# strategic# goal# of# internationalising# affiliate# marketing# business# activities# in# financial# year# 2010# with# a# rollWout# into#France#and# the# formation# of#international# business# relations.#The#internationalisation#strategy#will#also#be#a# point#of# focus#in#the# future#thus#ensuring#the#growth#of# belboonWadbulter# in# the# future# by# meeting# market# demands# and# broadening# its# area# of# activity.# By# taking# this# step,# belboon# will# also# be# supporting# YOC# Group's# international#orientation.
The\$ Company's\$ Performance\$ in\$ the\$ Mobile\$ BC2\$ Services\$Segment
In# the#Mobile#BC2#Services#segment# the#optimisation#of# advertising#investments#was# the#main# focus# of# financial# year# 2010.# Taking# into# account# the# emerging# easing# of# the#advertising#situation#at#the#beginning#of#the#year,#the# goal# was# to# review# the# individual# channels# with# more# emphasis#on#their#efficiency#as#well#as#renegotiating#the# conditions# with# approved# advertising# partners.# The# Mobile#BC2#Services# segment# reported# sales#of#EUR#1.5# million# for# 2010# and# EBITDA# of# EUR# 0.3# million# W 88%# above# the# figure# for# the# previous# year.# Overall# the# performance# in# the# Mobile# BC2# Services# segment#was#as#expected.#
Further\$ Development\$ of\$ IT Infrastructure\$ and\$ Technological\$Integration
YOC# has# a# highWperformance# IT# system# landscape# and# YOCWdeveloped# software# products# that# can# be# used# for# mobile# and# internetWbased# services.# The# underlying# technology# platforms# were# developed# entirely# by# YOC# and are# very# flexible,# powerful,# reliable# and# scalable.# They# have# numerous# interfaces# that# enable# the# integration# of# networked#multiWmedia#applications.#YOC# has# its# own# IT# department# for# the# support# of# the# software#(e.g.#FIT#technology)#and#product#management and/or#product#development.#
Of# all# the# different# technology# used# by# YOC,# the# following#are#of#particular#importance:
YOC#developed#its#own#software#platform# that#links# the# varying# technologies# to# create# individual# solutions# for# every#mobile#marketing#campaign# that#is#specific# to# the# target#group#in# question#and#its#media# use.#In#line#with# the# rapid# technological# developments,# the# focus# of# its# activities# has# increasingly# shifted# in# recent# years# from# the# conception# and# creative# design# of# marketing# concepts# and# the# technological# implementation# and# support# of# mobile# marketing# measures,# to# providing# a# full# service.# Technologies# such# as# mobile# advertising,# SEM/SEO,#QR#codes#and#augmented#reality#have#made#a# particular#contribution#to#this#end.#
In# the# mobile# internet# segment# it# is# the# FIT# mobile# platform#which#is#mainly#used,#and#on#the#foundation#of# which# fixed# websites# can# be# automatically# transformed# into# mobile# websites.# YOC's# technology# platform# now# also# includes# a# content# management# system# (CMS)# for# the# operation# of#internet# portals,#which# can# be# used# to# quickly# and# easily# implement# portals,# microsites# and# landing# pages# as# part# of# mobile# marketing# and# mobile# internet# campaigns.# The# YOC# device# database# that# is# updated#on#a#daily#basis#ensures#the#best#representation# of#WAP#portals#possible#on#a#huge#number#of#commonlyW used# mobile# handsets.# This# database# is# also# used# for# MMSW and# text# messageWbased# mobile# marketing# projects.
The# YOCWdeveloped# mobile# AdServing# technology# was# launched# by# YOC# Group# in# early# 2007.# This# technology# platform# encompasses# all# functions# implemented# in# online# advertising# platforms# such# as# campaign# management,# content# management,# multiWclient# capabilities# and# extensive# reporting# features# and# possibilities.# This# mobile# advertising# technology also# makes#it#possible#to#directly#address#target#groups#taking# into# consideration# the# users'# different# mobile# handsets# and/or# mobile# phone# operators.# The# mobile# coverage# network# ubiyoo# was# launched# at# the# end# of# 2010.# It# functions# on# a# global# basis# and# is# also# based# on# the# AdServing# technology.# This# technological# platform# also# offers# specific# targeting# options# by# country,# channel,# weekday# or# time# of# day,# as# well# as# flexible# pricing# models.#
SoWcalled# Software# Developer# Kits# were# also# made# available# to# developers# of# mobile# applications,# through# which# the# ubiyoo# system# can# be# used# as# a# monetary# assessment# module.# This# highWperformance# technology# is# supplemented# with# a# SelfWService# Booking# platform# which#enables#the#client#to#manage#their#own#campaigns# and# also# guarantees# a# top# scalability# of# this# long# tail# business#field.
The# belboon# marketing# network# is# part# of# the# leading# affiliate#marketing#network#in#Europe.#The#latest#second# generation# network# technology# guarantees# successful# multiWchannel# online# and# mobile# performance# advertising.# Alongside# the# marketWleading# standard# of# the# network# platform,# belboon# has# the# latest# tracking# technology# in# order# to# reliably# measure# sales.# The# success# of# the# publisher# is# guaranteed# through# the# combination# of# fingerprint,# session,# cookie,# postWview# and#flash#tracking.
We# have#also# created#a# flexible#interface# structure# that# makes#it#easier#to#link#up#external#systems.#It#is#used#for# example# to# send# user# data# generated# via# contests# directly#to#the#CRM#systems#of#the#customers.
This#platform#can#also#be#used#to#sell#mobile#content#via# mobile#websites.#The#integrated#billing#interface#enables# billing#via#the#user's#mobile#phone#bill.
The# individual# software#modules# are# developed# by#YOC# Group# developers#with#modern,# dataWbased# systems# on# the# basis# of# objectWoriented# programming# language# using#the#serviceWorientated#architecture#(SOA).
The# database# and# application# servers# used# by# YOC# are# set# up# at# the# branches# in# Berlin# and# Cologne# and# are# managed#by#the#YOC#IT#department.#To#ensure#security,# there# are# also# other# servers,# which# are# located# in# electronic# data# processing# centres# certified# by# the# German#Technical#Inspection#Service# (TÜV)#managed#by# YOC#and# hosted# by#external# service# providers.#To#avoid# the#disruption#of#service#due#to hardware#failure,#system# and# network# reserve# capacity# is# available.# To# prevent# unauthorised#persons#from#accessing#the#systems#of#YOC# Group# or# third# party# data,# we# installed# firewall# system,# encrypted# protocols# and# access# rights# management# at# critical# points.# Critical# data# is# also# duplicated# in# backup# systems# and# backed# up# at# different# geographical# locations.#
Internationalisation
YOC#Group's#foreign#business#performed#well#in#financial# year# 2010.# Overall# 29%# of# our# sales# were# generated# through#foreign#business#against#19%#the#previous#year.#
This# growth# is# due# to# optimisation# of# YOC# Group's# international# setup# as# well# as# increasing# realisation# of# transnational#crossWselling#potential.#
ReWorganising# foreign# business# activities# ensured# an# internationally# uniform#market# image#and#an# optimised# management# setup.# The# business# acquired# in# financial# year# 2009,# Bluestar# Mobile# Ltd.# (UK)# and# MIAM# S.L# (Spain)# were# renamed# YOC# Ltd.# and# YOC# Spain# S.L# as# appropriate.#The#preWexisting#YOC#Ltd.#was#renamed#YOC# Mobile# Advertising# Ltd.# in# order# to# give# the# premium# mobile# advertising# company# an# identical# structure# EuropeWwide.# The# business# activities# of# ubiyoo# were# relocated#from#Berlin#to#London.
YOC#Ltd.#further#secured#its#position#in#the#UK#market#in# financial# year# 2010# by# expanding# its# mobile# marketing# activities.#At#the#beginning#of#the#financial#year,#the#main# drivers# of# increased# mobile# marketing# requests# were# native#applications.#At# the#end#of# the# financial#year# this# was# clearly# moving# in# the# direction# of# mobile# internet# portals.#
With# the# technological# platform# ubiyoo,# YOC# Group# launched# a# globally# active# mobile# coverage# network# in#
the#first#quarter#of#2010#that#ran#extremely#well.#Already# more#than#2#billion#ad#impressions#were#supplied#via#the# ubiyoo# platform# per# month.# In# order# to# fulfil# ubiyoo's# global# edge# to# a# greater# extent# and# to# extend# the# flexibility# of# the# network,# business# activities# were# relocated#to#the#UK#in#the#fourth#quarter#of#2010#and#the# worldwide#control#of#ubiyoo#now#takes#place#from#there.#
YOC# Spain# strengthened# its# leading# position# in# mobile# advertising.#The#company#is#also#the#largest#independent# mobile# marketer# in# the# country.# In# addition,# business# activities#in#mobile#marketing#were#also#expanded.
YOC#Central#Eastern#Europe# further# secured#its#position# in# the# Austrian# market.# The# company# operates# mobile# portals# and# applications# for# a# variety# of# publishing# houses,# internet# providers# and# brands# such# as# Krone,# News.at,# Styria# Media# Group# and# Austrian# Airlines.# Mobile#marketing#and#mobile#advertising#products#were# implemented# for# customers# including# Bacardi,# Mars,# Rewe# and# other# providers.# The# company# expanded# its# client# portfolio# in# financial# year# 2010# with# renowned# titles# and# brands# including# herold.at,# wien.at,# Ford# and# Sony.#
YOC# Central# Eastern# Europe# won# the# first# Austrian# Mobile# Marketing# Award# for# its# integrated# mobile# campaign# for# Sony,# which# was# awarded# by# the# Mobile# Marketing#Association#of#Austria.#
belboonWadbulter# expanded# its# business# activities# into# the#French#market#in#financial#year#2010.#Entrance#on#to# the# French# market# represented# the# first# step# of# the# planned# expansion# of# belboonWadbutler# international# business# activities.# On# entering# the# French# market# belboon#benefited#from#its#established#position#in#the#DW AWCH# market.# Therefore# the# affiliate# network# immediately# gained# renowned# clients# such# as# Conrad# Electronics,#Lafuma#and#SkyWtours.#With#the#expansion#of# its# European# business# activities# belboon# can# also# successfully# realise# international# campaigns# on# a# larger# scale#in#the#future.
Personnel
As# of# 31# December# 2010,# YOC# Group# had# 187# employees.#This#is#an#increase#of#almost#8%#against#last# year# (2009:# 173# employees),# which# is# partly# due# to# the# expansion# of# international# business# and# the# ever# increasing#volume#of#business.#In#the#last#quarter#YOC#reW positioned# itself# internationally# and# is# well# represented# in#all#areas# of# business#in# the#UK#with# ubiyoo# Ltd.,#YOC# Mobile#Advertising#Ltd.#and#YOC#Ltd,#to#name#a#few.
In# the#mobile# technology#and#media#market,# the#expert# knowledge#of#our employees#is#paramount.#In#this#highly# innovative# field# of# business,# continuous# further# training# of#our#employees#is#essential#in#order#to#meet#the#everW increasing# requirements# of# the# industry# and# of# our# clients.
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Personnel#development#of#YOC#Group Total# number# of# employees# # Permanent# employees# Freelance# employees#and#other
The# first# step# in# this# process# is#employing#exceptionally# talented#individuals.#Careful#selection#in#the#recruitment# process# is# therefore# indispensable.# The# struggle# for# suitable# employees# was# already# noticeably# impeded# by# the#strong#economic#growth#at#the#end#of#financial#year# 2010.# Thus# for# financial# year# 2011# one# of# the# most# important#challenges#will#be#counteracting#this#effect.#
YOC# Group# awards# the# performance,# commitment# and# desire# of# its# employees# to# achieve# innovative# solutions# by#trusting#them#and#granting#them#considerable#leeway# in#structuring#their#work#as#well#as#offering#internal#and# external# training# opportunities# and# holding# regular# events.
Management\$Outlook
Owing# to# the# leading# market# positioning# we# have# built# based# on# our# international# approach,# YOC# Group's# unique#product#portfolio,#the#focus#on#scalable#business# fields# and# the# generally# positive# development# of# the# market,#YOC#Group#assumes#that#business#development# in#the#current#financial#year#will#continue#to#be#positive.
Results#of#operations
Sales\$Trend\$and\$Overall\$Performance
YOC# Group# continued# steadily# along# its# growth# path# in# financial# year# 2010.# The# strategy# it# had# chosen# to# develop#the#company#into#a#driver#of#innovation#and#into# an# international# service# provider# for# mobile# technology# and# media.# has# proved# to# be# a# decisive# factor# in# its# success# and# has# also# secured# the#market# positioning# of# the#entire#company#on#a#lasting#basis.#
In# the# wake# of# the expansion# of# its# volume# of# business# the#sales#revenues#rose#to EUR 30.5#million#in#the#period# under# review.# This# represents# an# increase# of# 17%# compared#with#the#previous#year#(EUR#26.1#million).#Due# to# own# work# capitalised# in# the# form# of# software# developed# in# house# amounting# to# # approximately EUR 1.1 million,# changes# in# inventories# for# goods# in# progress# amounting# to# approximately EUR W0.1# million# and# other# operating# income# amounting# to# EUR# 0.3# million,# our# total# output# in# financial# year# 2010# came# to EUR 31.9#million#(EUR#27.1#million).
Sales\$by\$Segment
Almost# all# business# segments# have# contributed# to# this# successful# performance.# In# the# core# mobile# marketing# segment,# sales# revenues# rose# by# 27%# over# the# period# under#review#to EUR#22.2#million.#7 percentage#points#of# this#are#due#to#the#fact#that#the#companies#acquired#over# the# course# of# financial# year# 2009,# namely# YOC# Ltd# (formerly#BlueStar#Mobile# Ltd.),# London#and#YOC#Spain,# S.L.#(formerly#Mobile#Advertising#Interactive#Media,#S.L.),# Madrid,#were#included#in#the#whole#2010#review#period,# whereas#in#the#same#period#the#previous#year,#they#were# only#taken#into#account#in#proportion#to#the#period#that# they# belonged# to# the#Group.#The# share# of# this# segment# in#the#Group's#total#earnings#thus#increased#to#73%.#The# continuing#upward#trend#reflects#the#successful#strategy# of# customer# retention# and# the# equally# successful# acquisition# of# new# important# customers# with# whom# major# campaigns# in# the# product# segment# of# mobile# advertising#are#implemented.
Sales# in# the# affiliate#marketing# segment# increased# from EUR 6.5# million# last# year# to EUR 6.7# million# and# contributed# 22%# to# the# Group's# total# sales.# The# sales# volume#of# the#mobile#BC2#services#segment#dropped#as# expected# from EUR 2.1# million# to EUR# 1.5# million.
Thus# the# share# of#this# segment#in# total#earnings# fell# to# 5%.
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►Sales#by#segment#in EUR#million
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►Distribution#of#sales#by#segment#in#%
Sales\$by\$region
The# rise# in# sales# revenues# was# achieved# both# on# the# German# domestic# market# as# well# as# on# the# ever# more# important# international# markets.# Germany# therefore# remains#the#most#important#market#for#YOC.#In#financial# year# 2010# the# Group# built# up# its# domestic# sales# by# 2%# from# EUR# 21.1 million to EUR 21.5# million# and# so# reinforced#its#leading# competitive# position. The# positive# performance# in# the# product# fields# of#mobile#marketing,# mobile# internet# and# mobile# advertising# are# responsible# for#this#rise.#Thus#the#contribution#to#total#earnings#from# sales# in# Germany# fell# from# 81%# in# the# previous# year# to# 71%.
Earnings#generated#internationally# rose#year#on#year#by# 77%# with# sales# rising# from EUR 5.0# million# to EUR 8.9# million# in# financial# year# 2010.# 24 percentage# points# of# this# revenue#increase# can# be#attributed# to# the# fact# that# that#the#companies#acquired#over#the#course#of#financial# year# 2009,# namely# YOC# Ltd# (formerly# BlueStar# Mobile# Ltd.),# London# and# YOC# Spain,# S.L.# (formerly# Mobile# Advertising# Interactive# Media,# S.L.),# Madrid,# were# included# in# the# whole# 2010# review# period,# whereas# in# the#same#period#the#previous#year,#they#were#only#taken# into# account# in# proportion# to# the# period# that# they# belonged# to# the# Group.Thus# the# contribution# to# total# earnings# from# sales# generated# internationally# increased# from#19%#to#29%.
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>#Sales#by#region#(in#million#EUR) Germany UK Austria Spain Belgium USA France Misc. Total