The BoD of the Digital Bros Group approves the draft financial statements for the year ending 30 June 2015 DIGITAL BROS GROUP:

Transcription

1 PRESS RELEASE The BoD of the Digital Bros Group approves the draft financial statements for the year ending 30 June 2015 DIGITAL BROS GROUP: CONSOLIDATED GROSS REVENUES AT 121 MILLION (-14.4%) EBITDA AT 16 MILLION (+96.2%) NET PROFIT AT 9.1 MILLION QUADRUPLED COMPARED TO 1.9 MILLION REALIZED AT 30 th OF JUNE 2014 NET DEBT REDUCED BY 13.6 MILLION (-62%) PROPOSED A DIVIDEND OF 0.13 PER SHARE Consolidated Gross Revenues at 121 million, -14.4% from million realized at 30 th June 2014 EBITDA at 16.0 million from the 8.1 million realized at 30th June 2014 EBIT at 12.3 million increased 78% from the 6.9 million realized at 30th June 2014 Pre-tax profit at 14.2 million compared to 4.5 million at 30thJune 2014 Net profit at 9.1 million quadrupled compared 1.9 million at 30 th June 2014 Net Financial Debt of the Group at 8.3 million, decreased by 13.6 million compared (-63%) to 21.9 million at 30 th June 2013 Proposed a dividend of 0.13 per share RESULTS FY Amounts in EUR/ Change Change% Revenues 121, ,574 (20,330) -14.4% EBITDA 16,076 8,178 7, % EBIT 12,342 6,935 5, % Pre-tax profit 14,254 4,560 9,694 NEED %. Net profit 9,105 1,925 7,180 NEED %.

2 Milan, September 11th, 2015 The Board of Directors of the Digital Bros Group, a digital entertainment company listed in the Star segment of the Milan Stock Exchange, has approved today the Draft Financial Statement for fiscal year (1st July th June 2015). The main results of the Digital Bros Group for FY , with comparative figures for the previous year are reported in the table below: Gross consolidated revenues at million, -14.4% compared to million of the previous fiscal year. EBITDA at 16.0 million an increase from 8.1 million on fiscal year EBIT at 12.3 million compared to 6.9 million at 30 June Pre-tax Profit at 14.2 million from 4.5 million at 30 June Net profit equal to 9.1 million an increase compared to 1.9 million on fiscal year PERFORMANCE BY BUSINESS SEGMENT The breakdown of revenues on 30th June 2015 by business segment is stated below both for this and the last year: Figures in EUR/000 Gross revenues Net revenues Change Change Development 1, ,565 n.a. 1, ,565 n.a. Mobile 14,847 11,088 3, % 14,847 11,088 3, % Publishing 80,014 76,263 3, % 76,385 71,930 4, % Italian Distribution 24,529 53,885 (29,356) -54.5% 23,044 50,035 (26,991) -53.9% Other project (49) -14.4% % Total Revenues 121, ,574 (20,330) -14.4% 115, ,145 (17,155) -12.9% The decrease in consolidated revenues was due to the negative sales trend of the Italian Distribution segment, on the other hand revenues of the Publishing and Mobile segment increased by 5% and 34% respectively. Due to the lack of a new cartoon series the Italian Distribution segment showed a significant and expected decline in the sales of Yu-Gi-Oh! trading cards game. In addition there was a decline in the retail market of videogames in Italy. Publishing gross revenues increased by 3.7 million, with a rate of 5%. Sales have been focused on videogames published by the Group in previous years such as PAYDAY2 e Sniper Elite V3, but also for the sales reached by the new version of PAYDAY2 released on next gen console and launched near the end of fiscal year. Mobile revenues equal to 14.8 million, +33.9% with an increase of 3.7 million. The biggest contribution came from recurring sales generated by the videogame Terraria confirming its worldwide success, with 12 million revenues reached in the period. The table below shows the contribution to the Group's revenues and profit margins in the fiscal year by operating sector: EUR/000 Studios Mobile Publishing Italian Distribution Other Projects Holding Total Gross Revenues 1,565 14,847 80,014 24, ,244 EBITDA (1,105) 3,492 19,266 (127) (440) (5,009) 16,076 EBIT (1,546) 2,374 18,339 (761) (557) (5,507) 12,342 The reduction of 27.2% in cost of sales and 10.4% in operation costs lead to EBITDA to increase by 7.8 million to 16.0 million, despite non-recurring expenses of 181 thousand and incremental costs related to the consolidation of the two companies recently acquired, Dr Studio Ltd. and Pipeworks Inc.. EBIT increase is slightly lower than the growth of the other margins, mainly due to the amortization of intangible assets related to acquisitions made in the Group during the year.

3 Pre-tax profit increased by 9.6 million compared to 30 June 2014 thanks to a significant improvement in financial income, due to both favourable U.S. dollar and valutation gains of Starbreeze B shares in the portfolio, but also by lower interest expenses due to the significant debt reduction. THE NET FINANCIAL POSITION The net financial debts, at 30 June 2015 were at 8.3 million, reduced by 13.5 million, -62% compared to June 30th, Despite at 31 st March 2015 the Management was expecting an increase in the Net Financial Position, this has been reduced by 3.3 million in the last quarter of the fiscal year. This includes the effects of the acquisitions of DR Studios Ltd. and Pipeworks Inc. which amounted to 3.1 million. THE PARENT COMPANY DIGITAL BROS SPA On the 30 th of June the parent company Digital Bros S.p.A. realized gross revenues of 24.5 million, with a decrease of 48.2% compared to 47.4 million realized in the previous fiscal year. EBITDA is negative 3.8 million, decreasing from negative 1.2 million of the previous fiscal year. EBIT amounted to 4.2 million, increasing compared to 1.1 million of fiscal year having benefited from 6 million dividends received from subsidiary Game Entertainment S.r.l., 1.4 million received from subsidiary 505 Games France S.a.s. and the reversal of impairment losses in the subsidiary 505 Games S.r.l. equal to 5.4 million. Net profit at 30 June 2015 amounted to 6.9 million compared to 615 thousand loss at 30 June TREASURY SHARES According to Art comma 2 n. 3 of the Italian Civil Code, Digital Bros S.p.A. at 30 June 2015 owns 400,247 treasury shares. According to Art. 4 comma 2, in November 2014, the Company disposed of 125,000 shares at an average price of 3.28 per share, for a total of 410 thousand. DIVIDEND The Board of Directors has decided to propose the distribution of dividend of 0.13 per share. The dividend will be paid out on December 9th, 2015 (record date December 9th), subject to Shareholders' resolution, excluding treasury shares held by clipping coupon number 7 on the 7th December CALLING OF THE ANNUAL GENERAL MEETING The Board of Directors has resolved to convene the Annual Shareholders General Meeting on the 23th October 2014 at 9.00 a.m. (first call) and, if necessary, in second call on the 26th October 2014, at the same time. The Shareholders approval will be requested: to approve the financial statements for the fiscal year ; to propose the distribution of dividend and approve the remuneration report pursuant to article 123-ter of Legislative Decree no. 58/98. The Shareholders approval will also be requested: to authorize the Board of Directors, by the date of approval of the Financial Statements at June 30, 2016, to purchase and sale of own shares whose total cannot exceed 10% of share capital (equivalent to one million ordinary shares), in accordance with art.144 bis of the Issuers Regulation 11971/99. Any purchases, if authorized, shall be made at a price not higher than 20 per share and not lower than 0.40 per share, according with the laws and regulations of the Italian Stock Exchange and the Community provisions. The reasons of which Shareholders approval is requested are: business purposes such as, for example, exchange and / or barter to achieve strategic partnerships; investment purposes such as, for example, to be able to carry out operations for trading, hedging and arbitrage to intervene in the presence of abnormal fluctuations in the stock market or investment operations, liquidity in the service of any stock option plans that will be approved in the future. SIGNIFICANT EVENTS Significant events of the fiscal year : On September 4th, 2014 the Digital Bros Game Academy Srl was established. The new company is specialized in the organization of computer science, training and professional training courses, including multimedia and became operational in March 2015; On September 12 th, 2014, the Group acquired 100% of Pipeworks Inc., based in Eugene, Oregon (USA). The company has 50 employees and released products such as Devil May Cry, Godzilla and Zumba Fitness. Pipeworks Inc. has been acquired by the parent company Digital Bros SpA for USD 1.25 million, increased by the counter-value at August 1, 2015 equal to USD 62 thousand; On September 12 th, 2014, the Group acquired 100% of DR Studios Ltd. headquartered in Milton Keynes (UK). The company is a developer of mobile app games and has 25 employees. DR Studios has been acquired by the subsidiary 505 Mobile Srl for 1.5 milion. The purchase price has been increased by the equivalent of the net asset value as at 31st of August 2014, which was equal to GBP 426 thousand. The contract stipulated that two further instalments payment in relation to a percentage of the revenues generated by the Group developed by DR Studios during the period between September 2014 August 2015 and in the following 12 months.

4 On October 28, 2014, the Shareholders Meeting has approved the Financial Statement at 30 June 2014, the Remuneration Report according to article 123-ter of Legislative Decree no. 58/98. The Shareholders has approved the Board of Directors and the Board of Statutory appointing as chairman respectively Abramo Galante and Sergio Amendola. The Shareholders Meeting also approved the distribution of a dividend of 0.13 cents per share. The dividend has been paid from December 10 th, 2014 (record date December 9 th ), by clipping coupon number 8. On November 13, 2014, the Board of Directors: 1) appointed as Managing Directors Abramo Galante and Raffaele Galante entrusting them with adequate power; 2) appointed Guido Guetta, Elena Morini e Bruno Soresina as Committee for Remuneration and Internal Control Committee; 3) appointed Stefano Salbe as the Executive Director in charge of the supervision of the internal control system On February 12, 2015, the shareholders of Ebooks & Kids Srl, a subsidiary of which the parent company holds 20%, signed an agreement with Giunti Editori SpA providing a capital increase of 5 thousand nominal plus premium of 195 thousand reserved for Giunti Editori SpA. Upon completion the share of the parent company in Ebooks & Kids Srl It has become equal to 16% of the share capital; On 23 March 2015, the Digital Bros Group extended its cooperation agreement with Starbreeze to additional content for PAYDAY 2, through its subsidiary 505 Games S.r.l. The exclusive publishing rights that the Group holds to PAYDAY 2 have also been extended until 2032, for an additional ten years on top of the original contract. Starbreeze AB, a Swedish development studio, and 505 Games S.r.l. decided to extend their original cooperation agreement for the title PAYDAY 2 for an additional 24 months, with effect from 1 April The agreement includes development of all expansions of the video game PAYDAY 2 on PC and next-generation consoles. The Group s total investment is 13.4 million U.S. dollars over a period of 24 months. On 23 March 2015, as part of efforts to strengthen the long-term ties between the two companies, Digital Bros S.p.A. decided to purchase 3,872,722 shares of Starbreeze (listed on NASDAQ Stockholm First North Premier under the ticker STAR) for a total of 5 million U.S. dollars. The transaction will be completed in three instalments (1 April 2015, 1 July 2015 and 1 October 2015). On 29 April 2015, the Group signed an agreement with Starbreeze AB for the console version of the videogame OVERKILL S The Walking Dead. The investment for the lifetime console rights will be U.S. Dollars 10 million. OVERKILL s The Walking Dead, based on the hugely popular The Walking Dead-series created by Robert Kirkman, is currently under development by OVERKILL A Starbreeze Studio. The game will deliver a completely new co-op experience to The Walking Dead-universe, exploring new characters and storylines. On 21 May 2015, Digital Bros signed an agreement in order to buy a second portion of 1,167,278 ordinary shares of Starbreeze AB (listed on Nasdaq Stockholm First North Premier with the ticker STAR) for a total value of USD 3.2 million. The purchase will be made in 2 steps (1 January 2016, 1 April 2016). This agreement, added to the one already signed on the 23 March 2015, the Group will buy 2.5 million Starbreeze A ordinary shares and 5 million Starbreeze B ordinary shares (following the share split approved by Starbreeze s Shareholders Meeting on June 5, 2015) for a total investment of USD 8.2 million. On 26 June 2015, in the process of reorganization and rationalization of the Group s operative segment have been executed the following corporate transactions: a. Digital Bros S.p.A. sold to 505 Games srl the companies 505 Games France S.A.S. and 505 S.l.u. Spain for an amount respectively of 100 thousand and 511 thousand. These transfers were made at market value as determined by a specific appraisal prepared by an independent expert; b. Digital Bros S.p.A. sold to 505 Games S.r.l. the company 505 Mobile S.r.l. for 940 thousand; later, on the same date, Digital Bros S.p.A. sold to 505 Mobile S.r.l. the company Game Entertainment S.r.l. for an amount of 330 thousand. These transfers were made at market value as determined by specific appraisal prepared by an independent expert; On 26 June 2015, Digital Bros S.p.A. underwrote a capital of Game Network srl becoming the sole Shareholder (the company was 100% owned by 505 Mobile S.r.l.) SIGNIFICANT EVENTS AFTER YEAR-END Digital Bros has acquired 1,149,816 shares Starbreeze B for a value of 902,000 and sold 2,682,904 ordinary shares Starbreeze B for a total value of 3,285,000, at the same time the Company acquired n. 708,264 ordinary shares Starbreeze A for a total value of 621,000. During the months of August and September, Digital Bros SpA sold on the open market 270,000 treasury shares for a total value of 3.0 million Euros. At the date of approval of the report, the number of treasury shares held is equal to 130,247 ordinary shares.

5 On 11 September 2015 the Group signed a commitment to subscribe a capital increase of the Italian game developer Ovosonico Srl. The capital increase for a total amount of 720,000 will be fully subscribed by Digital Bros SpA bringing it to hold 49% of the shares at the end of the process, scheduled for July 31, No dedicated form of financing has been provided for the acquisition which will therefore be financed through the existing credit lines. The company is based in Varese, and has 25 employees. The company has developed games such as Murasaki Baby, a multi award-winning video game published by Sony Computer Entertainment. OUTLOOK Management expects that the next year for the Publishing operating segment,will be in line with the satisfactory level of revenues generated this year, supported by the PC version of PAYDAY2, released on Steam, and also a satisfactory level of revenues generated by the console versions, following the launch of PAYDAY2: Crimewave edition for the next-generation consoles in June The launch of new products will take place in the second half of the year with particular emphasis for Assetto Corsa, produced by an Italian developer and already released with huge success in the PC version on Steam. In the Mobile operative segment, it is expected that Terraria and Battle Islands will continue to generate revenues in the different versions for the whole year, benefiting also from launches of new versions dedicated to new consoles. Revenues of the Italian Distribution segment will remain stable compared to the previous year, but the operating segment will benefit from significant cost savings as a result of cost containment policy already implemented in the current fiscal year. In the Other Projects operative segment, growth expectations are coming from the launch of Fantasfida. The game has to be considered as a fantasy daily sport game which will be available under the AAMS which will be released on the Italian market by Game Network Srl during the month of September At consolidated level, it is expected the year ending 30 June 2016 will be in line with the actual fiscal year ended on both revenues and operative margins. A reduction in net debt it is expected, although at lower rates than in recent years, due to the level of investments that the Groupwill continue to prepare in order to sustain further period growth. ART. 154-BIS OF THE CONSOLIDATED FINANCE ACT As required by paragraph 2, Art, 154-bis of the Consolidated Finance Act, the financial reporting officer of the Digital Bros Group, Stefano Salbe, declares that the information contained in this press release corresponds to the Group's records, ledgers and accounting entries. Digital Bros - The Digital Bros Group is listed on the Milan Stock Exchange since October 2000 and active in the videogame field since A close watcher of market trends, Digital Bros operates in the following different business areas: Distribution of video games and trading cards in Italy: through the brands Halifax, Game Service and Game Entertainment; Publishing and international publishing of video games: through the brand 505 Games active in publishing and international distribution, physical as well as digital, through direct operations in Los Angeles, London, Munich, Lyon and Madrid and deals with the main digital market places; Social Gaming: through the brand 505 Mobile the group operates as international publisher of videogames for the platforms Facebook, Apple, Amazon, Android and Windows Phone. Studios: the Group operates in the development of video games through the studio Pipeworks Inc. Contacts: Digital Bros SpA Stefano Salbe CFO tel

6 FINANCIAL STATEMENTS DIGITAL BROS GROUP CONSOLIDATED BALANCE SHEET AT 30 JUNE 2015 Thousands of Euro 30 June June 2014 Change Non-current assets 1 Property, plant and equipment 4,841 3,232 1, % 2 Investment property (455) n.a. 3 Intangible assets 7,946 2,141 5,805 n.a. 4 Equity investments 1, % 5 Non-current receivables and other assets 1,058 1, % 6 Deferred tax assets 2,240 4,217 (1,977) -46.9% Total non-current assets 17,359 11,396 5, % Non-current liabilities 7 Employee benefits (486) (540) % 8 Non-current provisions (170) (205) % 9 Other non-current payables and liabilities (589) 0 (589) 0.0% Total non-current liabilities (1,245) (745) (500) 67.1% Net working capital 10 Inventories 12,881 14,779 (1,898) -12.8% 11 Trade receivables 36,350 42,318 (5,968) -14.1% 12 Tax credits 2,466 3,818 (1,352) -35.4% 13 Other current assets 6,148 3,366 2, % 14 Trade payables (26,929) (22,034) (4,895) 22.2% 15 Taxes payable (3,029) (4,028) % 16 Current provisions % 17 Other current liabilities (1,859) (1,580) (279) 17.7% Total net working capital 26,028 36,639 (10,611) -29.0% Capital and reserves 18 Share capital (5,644) (5,644) 0 0.0% 19 Reserves (19,417) (19,509) % 20 Treasury shares 1,199 1,574 (375) -23.8% 21 Profit (losses) carried forward (9,947) (1,802) (8,144) n.a. Total capital and reserves (33,809) (25,381) (8,428) 33.2% Total net assets 8,333 21,909 (13,576) -62.0% 22 Cash and cash equivalents 4,339 3, % 23 Short-term payables to banks (12,738) (22,355) 9, % 24 Other current financial assets and liabilities 1,685 (3,225) 4,910 n.a. Current net financial debts (6,714) (21,890) 15, % 25 Non-current financial assets % 26 Non-current payables to banks (1,619) 0 (1,619) n.a. 27 Other non-current financial liabilities 0 (19) 19 n.a. Non-current net financial debts (1,619) (19) (1,600) n.a. Total net financial debts (8,333) (21,909) 13, %

7 DIGITAL BROS GROUP CONSOLIDATED INCOME STATEMENT AT 30 June 2015 Thousands of Euro 30 June June 2014 Change 1 Gross revenues 121, % 141, % (20,330) -14.4% 2 Revenue adjustments (5,254) -4.5% (8,429) -6.3% 3, % 3 Total net revenues 115, % 133, % (17,155) -12.9% 4 Purchase of goods for resale (34,104) -29.4% (46,394) -34.8% 12, % 5 Purchase of services for resale (5,374) -4.6% (6,570) -4.9% 1, % 6 Royalties (28,328) -24.4% (36,909) -27.7% 8, % 7 Change in inventories of finished products (1,898) -1.6% (5,904) -4.4% 4, % 8 Total cost of goods sold (69,704) -60.1% (95,777) -71.9% 26, % 9 Gross profit (3+8) 46, % 37, % 8, % 10 Other income 2, % % 2,031 n.a. 11 Cost of services (11,733) -10.1% (14,357) -10.8% 2, % 12 Rent and leasing (1,548) -1.3% (1,338) -1.0% (210) 15.6% 13 Payroll costs (17,853) -15.4% (12,569) -9.4% (5,284) 42.0% 14 Other operating expenses (1,371) -1.2% (1,190) -0.9% (181) 15.3% 15 Total operating expenses (32,505) -28.0% (29,454) -22.1% (3,051) 10.4% 16 EBITDA ( ) 16, % 8, % 7, % 17 Depreciation and amortization (2,920) -2.5% (1,211) -0.9% (1,709) n.a. 18 Provisions 0 0.0% 0 0.0% 0 0.0% 19 Asset impairment charge (1,455) -1.3% (32) 0.0% (1,423) n.a. 20 Impairment reversal % 0 0.0% % Total depreciation, 21 amortization and impairment (3,734) -3.2% (1,243) -0.9% (2,491) n.a. 22 EBIT (16+21) 12, % 6, % 5, % 23 Financial income and interest income 3, % % 3,591 n.a. 24 Interest expense and financial expense (2,027) -1.7% (2,723) -2.0% % 25 Net financial result 1, % (2,375) -1.8% 4,287 n.a. 26 Profit before taxes (22+25) 14, % 4, % 9,694 n.a. 27 Current taxes (3,897) -3.4% (435) -0.3% (3,463) n.a. 28 Deferred taxes (1,252) -1.1% (2,200) -1.7% % 29 Total taxes (5,149) -4.4% (2,635) -2.0% (2,515) n.a. 30 Net profit (26+29) 9, % 1, % 7,180 n.a. Earnings per share:

8 33 Basic earnings per share (in EUR) n.a. 34 Diluted earnings per share (in EUR) n.a. DIGITAL BROS GROUP CONSOLIDATED CASH FLOW STATEMENT AT 30 JUNE 2014 Thousands of Euro 30 June June 2014 A. Opening net financial debts (21,909) (34,319) B. Cash flow from operating activities Group's share of net profit (loss) for the year 9,105 1,925 Depreciation, amortization and provisions: Provisions and impairment losses Amortization of intangible assets 2, Amortization of tangible assets Net change in other provisions (35) (125) Net change in employee benefit provisions (54) 10 SUBTOTAL B. 13,339 3,053 C. Change in net working capital Inventories 1,898 5,904 Trade receivables 5,154 (4,426) Tax credits 1,352 (1,747) Other current assets (2,782) 958 Trade payables 4,895 9,250 Taxes payable (999) 27 Current provisions 0 0 Other current liabilities 279 (867) SUBTOTAL C. 9,797 9,098 D. Cash flow from investing activities Investments in intangible assets (8,222) (1,709) Investments in property, plant and equipment (1,658) (145) Investments in financial fixed assets 997 1,796 SUBTOTAL D. (8,883) (58) E. Cash flow from financing activities Capital increases 0 0 SUBTOTAL E. 0 0 F. Movements in consolidated capital and reserves Dividends paid (960) 0 Change in treasury shares held Increases (decreases) in other components of capital and reserves (92) 317 SUBTOTAL F. (677) 317 G. Cash flow for the period (B+C+D+E+F) 13,576 12,410

9 H. Final net financial debts (A+G) (8,333) (21,909)

10 SEGMENT REPORTING CONSOLIDATED INCOME STATEMENT AT 30 June 2015 Thousands of Euro Studio Mobile Publishing Distribution Italy Other Projects Holding Total 1 Gross revenues 1,565 14,847 80,014 24, ,244 2 Revenue adjustments 0 0 (3,629) (1,485) (140) 0 (5,254) 3 Total net revenues 1,565 14,847 76,385 23, ,990 4 Purchase of goods for resale 0 (0) (16,373) (17,731) 0 0 (34,104) 5 Purchase of services for resale (189) (1,802) (3,366) 0 (17) 0 (5,374) 6 Royalties 0 (6,541) (21,774) 0 (13) 0 (28,328) 7 Change in inventories of finished products 0 0 (1,332) (566) 0 0 (1,898) 8 Total cost of goods sold (189) (8,343) (42,845) (18,297) (30) 0 (69,704) 9 Gross profit (3+8) 1,376 6,504 33,540 4, , Other income 1, , Cost of services (259) (755) (6,947) (2,230) (270) (1,272) (11,733) 12 Rent and leasing (91) (66) (552) (58) (22) (759) (1,548) 13 Payroll costs (3,604) (2,598) (6,296) (2,419) (379) (2,557) (17,853) 14 Other operating expenses (85) (38) (538) (248) (41) (421) (1,371) 15 Total operating expenses (4,039) (3,457) (14,333) (4,955) (712) (5,009) (32,505) 16 EBITDA ( ) (1,105) 3,492 19,266 (127) (440) (5,009) 16, Depreciation and amortization (441) (1,118) (898) (227) (117) (119) (2,920) 18 Provisions Asset impairment charge 0 (641) (28) (407) 0 (379) (1,455) 20 Impairment reversal Total depreciation, 21 amortization and impairment (441) (1,118) (926) (634) (117) (498) (3,734) 22 EBIT (16+21) (1,546) 2,374 18,339 (761) (557) (5,507) 12,342

11 Digital Bros S.p.A Balance Sheet at 30 June 2015 EUR/ June June 2014 Change Non-current assets 1 Property, plant and equipment 3,335 3, % 2 Investment property (455) % 3 Intangible assets % 4 Equity investments 13,931 14,635 (704) 0.0% 5 Non-current receivables and other assets % 6 Deferred tax assets 517 1,023 (506) -49.5% Total non-current assets 18,749 20,001 (1,252) -6.3% Non-current liabilities 7 Employee benefits (442) (501) % 8 Non-current provisions (171) (205) % 9 Other non-current payables and liabilities % Total non-current liabilities (613) (706) % Net working capital 10 Inventories 9,266 9,807 (541) -5.5% 11 Trade receivables 5,445 6,969 (1,524) -21.9% 12 Due from subsidiaries 14,131 25,393 (11,262) -44.4% 13 Tax credits 471 2,205 (1,734) -78.6% 14 Other current assets (112) n.a. 15 Trade payables (2,204) (2,011) (193) 9.6% 16 Due to subsidiaries (2,031) (8,000) 5, % 17 Taxes payable (286) (920) % 18 Current provisions (1,491) (8,519) 7, % 19 Other current liabilities (940) (1,158) % Total net working capital 22,860 24,377 (1,517) -6.2% Capital and reserves 20 Share capital (5,644) (5,644) 0 0.0% 21 Reserves (18,172) (17,876) (296) 1.7% 22 Treasury shares 1,199 1,574 (375) -23.8% 23 Profit (losses) carried forward (7,214) (1,228) (5,986) n.a. Total capital and reserves (29,831) (23,174) (6,657) 28.7% Total net assets 11,165 20,498 (9,333) -45.5% 24 Cash and cash equivalents 1, ,290 n.a. 25 Short-term payables to banks (12,727) (19,541) 6, % 26 Other current financial liabilities 1,401 (1,428) 2,829 n.a. Current net debt (9,546) (20,479) 10, % 27 Non-current financial assets % 28 Non-current payables to banks (1,619) 0 (1,619) n.a. 29 Other non-current financial liabilities 0 (19) 19 n.a. Non-current net debt (1,619) (19) (1,600) n.a. Total net debt (11,165) (20,498) 9, %

12 Digital Bros S.p.A. Income Statement at 30 June 2015 EUR/ June June 2014 Change 1 Gross revenues 24, % 47, % (22,847) -48.2% 2 Revenue adjustments (1,485) -6.4% (3,842) -8.8% 2, % 3 Total net revenues 23, % 43, % (20,490) -47.1% 4 Purchase of goods for resale (17,731) -76.9% (30,692) -70.5% 12, % 5 Purchase of services for resale 0 0.0% 0 0.0% 0 0.0% 6 Royalties 0 0.0% 0 0.0% 0 0.0% 7 Change in inventories of finished products (541) -2.3% (5,126) -11.8% 4, % 8 Total cost of goods sold (18,272) -79.3% (35,818) -82.3% 17, % 9 Gross profit (3+8) 4, % 7, % (2,944) -38.1% 10 Other income 1, % 2, % (976) -34.8% 11 Cost of services (3,484) -15.1% (3,950) -9.1% % 12 Rent and leasing (825) -3.6% (832) -1.9% 7-0.7% 13 Payroll costs (5,474) -23.7% (6,137) -14.1% % 14 Other operating expenses (667) -2.9% (764) -1.8% % 15 Total operating expenses (10,450) -45.3% (11,683) -26.8% 1, % 16 EBITDA ( ) (3,845) -16.7% (1,158) -2.7% (2,687) n.a. 17 Depreciation and amortization (359) -1.6% (420) -1.0% % 18 Provisions 0 0.0% 0 0.0% 0 0.0% 19 Asset impairment charge (3,825) -16.6% (1,470) -3.4% (2,355) 160.3% 20 Impairment reversal 12, % 4, % 8, % Total depreciation, amortization and 21 impairment 8, % 2, % 6,526 n.a. 22 EBIT (16+21) 4, % 1, % 3,839 n.a. 23 Interest income 2, % % 2,218 n.s. 24 Interest expense (1,035) -4.5% (2,243) -5.2% 1, % 25 Net interest income (expense) 1, % (2,108) -4.8% 3,426 n.a. 26 Profit before taxes (22+25) 6, % (1,056) -2.4% 7,265 n.a. 27 Current taxes 1, % 1, % (496) -30.3% 28 Deferred taxes (407) -1.8% (1,199) -2.8% % 29 Total taxes % % % 30 Net profit (26+29) 6, % (615) -1.4% 7,561 n.a.