EQS-Ad hoc: Goldbach AG

Annual result 2017
Goldbach posts record result in the financial year 2017

Küsnacht, 06.03.2018, revenue grows by 3.2% to CHF 512 million - increase of 22% in the operating result at EBITDA level - net profit amounts to CHF 11.8 million (+34%) - renewed growth in the Swiss domestic market - Germany moves to profitability - successful turnaround in Marketing Services - Goldbach well placed to meet future challenges in proposed partnership with Tamedia - changes to the Board of Directors.

Goldbach continued its successful development in 2017 with a record year. For the first time in the company's history, sales have grown above the 500 million mark, despite challenging advertising markets. Record levels were also achieved in net profit and the net result. In addition, Goldbach succeeded in 2017 in extending significant marketing contracts and entering into new partnerships. Particularly noteworthy in this connection is the strategic partnership with Tamedia, which was communicated on 22 December 2017 and proposed by the Board of Directors. On 2 February 2018, Tamedia published an offer to acquire all Goldbach shares, acceptance of which is recommended by Goldbach's Board of Directors to its shareholders.

Goldbach generated revenue of CHF 512 million (+3.2%) in the past financial year. Adjusted for foreign currency and divestment effects, growth stood at +3.7%. The broad support for this positive development is encouraging. Thus, all segments managed to further increase their revenue compared to the previous year. As a result of higher revenue, an improved gross profit margin and repeat lower operating costs, EBITDA increased significantly by +22% to CHF 39.7 million. The net result amounts to CHF 11.8 million compared to CHF 8.8 million in the previous year. It should be noted that the net result includes extraordinary costs of CHF 1.5 million related to the current takeover project. Adjusted for these special effects, the adjusted net profit amounts to CHF 13.3 million. Due to the fact that, in the context of the planned transaction with Tamedia, any dividend will be deducted from the takeover price, the Board of Directors will propose to the Annual General Meeting that no dividend be distributed for the financial year.

Ad Sales Switzerland
The business segment Ad Sales Switzerland encompasses business activities in ad marketing in Switzerland and had total revenue of CHF 458 million, which represents an increase of +2.3% over the prior year. EBITDA stands at CHF 43.6 million, an increase of 11% over the prior year.

Swiss TV marketing operated by Goldbach Media (Switzerland) AG saw positive growth again in the financial year 2017. Thanks to a strong sales performance and a steadily growing marketing portfolio, TV revenue increased by just under 3% year-on-year. In addition to the outstanding operating profit, the multi-year contract extensions with the partners Mediengruppe RTL Deutschland and SevenOne Media (Switzerland) as well as the 3 Plus Group, AZ Medien and the Web TV provider Wilmaa represent major milestones in the financial year 2017.

After a difficult start to the year, Swiss Radioworld AG, which operates in the radio business, posted significant growth and, in terms of revenue, closed in 2017 only just short of the prior year (-3%). Connecting several radio stations to the booking platform of Swiss Radioworld allowed a big step to be made towards automatic, event data-driven product delivery.

The online business in Switzerland was further strengthened in 2017. RTL Mediengruppe Deutschland and SevenOne Media (Switzerland) acquired a stake in Goldbach Audience, extending the successful partnership to the online business. Goldbach markets the online portfolio of these two partners exclusively in Switzerland. In addition, at the beginning of 2017, the partnership was successfully launched with the marketing of the Tamedia video portfolio. Due to the focus of Goldbach Audience on the ad sales business, only exclusive or high-quality network products are being sold. Although this departure from the purchasing + trading business had a negative effect on revenue (CHF -6.7 million), the margin increased. Adjusted for the discontinued purchasing + trading business, Goldbach Audience recorded growth of 25.7% for the portfolio. In addition to the classic online products, Crossfactory was also sustainably and successfully positioned.

Ad Sales Germany
Ad Sales Germany generated revenue of CHF 13.6 million in 2017, which corresponds to an increase of 67% over the previous year. With EBITDA of CHF 0.3 million, Goldbach - as announced - moved to profitability in the Germany business in 2017 (prior-year EBITDA: CHF
-1.2 million). The positive development of Goldbach Germany GmbH results from the growth in all four business areas: TV, online video, DOOH and Smart TV. Over the past year, the Munich-based company, which has existed for three years, was able to steadily expand its marketing portfolio and establish itself in the advertising market. Jaduda GmbH in Berlin, which specialises in advertising on mobile devices, also posted significant growth in 2017, contributing significantly to the Group's positive EBITDA in Germany. The Mobile DSP "Splicky" has been further developed into a DOOH platform and now enables the programmatic purchase of digital outdoor advertising space.

Ad Sales Austria
With its marketing activities in Austria, Goldbach posted revenue of CHF 14.4 million in 2017, representing an increase of 11%, and an EBITDA of CHF 0.7 million (+8% compared to the prior year). Goldbach Austria managed to solidify its position as a marketer in the Austrian market in 2017. In addition, sales and campaign support have been managed centrally since last year, which means that increased multichannel-oriented customer needs can be better met.

Marketing Services
In financial year 2017, Goldbach Interactive, Goldbach's digital agency specialising in performance marketing, was consistently restructured, repositioned and returned to profitability. The transnational management was able to successfully firm up the agency and thereby further increase the quality of service. As a result, prominent new customers were acquired and existing mandates in Germany, Switzerland and Austria were expanded. Despite last year's divestment of the Biel-based Digital Presences business unit, revenue in Marketing Services increased by 5% to CHF 31.3 million. EBITDA in 2017 amounted to CHF 0.1 million (previous year: CHF -2.0 million).

Extraordinary result, cash flow and balance sheet
In connection with the planned takeover by Tamedia, costs of CHF 1.5 million were incurred in the financial year 2017, in particular for transaction and legal advice services. These are shown separately as an extraordinary expense in the annual financial statements. In 2016, the extraordinary result amounted to CHF +1.3 million, traceable mainly to the sale of business activities in Poland and restructuring measures in Marketing Services. Adjusted for the extraordinary effects mentioned above, adjusted net profit rose by +78% from CHF 7.5 million to CHF 13.3 million in the past financial year.

The operating cash flow amounts to CHF 27.7 million (prior year CHF 28.5 million). Equity amounts to CHF 51.3 million, which corresponds to an equity ratio of 27.1%.

Partnership with Tamedia
Goldbach's current business model is largely based on linear TV, which faces significant challenges due to changes in consumer behaviour (time-shifted television, streaming), the increasing convergence of various media categories and the related increasing technological resilience of the business. Based on these considerations, Goldbach's Board of Directors and Executive Board initiated a strategic realignment project in early 2017 with the goal of expanding Goldbach's business base with the help of a strategic partner in order to offset the described long-term risks in its core business.

Goldbach has found its ideal partner in Tamedia. The proposed acquisition by Tamedia gives Goldbach a majority shareholder and strategic partner that pursues the same corporate goals while providing access to additional advertising portfolio and technological synergies. By joining forces, Goldbach and Tamedia are well positioned to navigate any changes in the advertising market and to support advertisers and media partners with technologically innovative offerings.

Goldbach will continue to operate within the Tamedia Group as an independent company with its existing management. Goldbach's Board of Directors and management are convinced that this partnership will ensure preservation of value for shareholders, added value for customers and partners as well as future prospects for employees.

Changes to the Board of Directors
All existing members of the Board of Directors of Goldbach Group AG have decided to resign from their offices upon the conclusion of a public takeover bid by Tamedia AG with effect from execution. Christoph Tonini (CEO Tamedia) is to be newly elected as Chairman of the Board of Directors as are Sandro Macciacchini (CFO Tamedia) and Marcel Kohler (Head of Advertising & Commuter Media) as members of the Board of Directors.

Note to analysts, investors and media representatives
Today, Goldbach Group AG will offer personal orientation on the annual result for 2017 at 9.30 am at its headquarters in Küsnacht (Seestrasse 39, 8700 Küsnacht).

The presentation and the 2017 annual report of Goldbach Group AG is available for download from our website http://www.goldbachgroup.com/en-us/investor-relations/financial-reports

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Further information:
Investor Relations Corporate Communication
Goldbach Group AG Goldbach Group AG
Lukas Leuenberger Jürg Bachmann
CFO Head of Communications & Marketing / Public Affairs
T +41 44 914 91 00 M +41 79 600 32 62
lukas.leuenberger@goldbachgroup.com juerg.bachmann@goldbachgroup.com
www.goldbachgroup.com www.goldbachgroup.com

The corporate profile of the Goldbach Group
The Goldbach Group companies market and represent advertising in private electronic media in the areas of television, radio, digital-out-of-home, online, search engine and mobile marketing. As an independent aggregator, Goldbach offers its clients advertising windows where selected target groups receive commercial information at the right time irrespective of their location. The Group's core business comprises planning, consulting, creation, concept development, purchasing and implementation through to assessment of the deployment of electronic offline and online media and cross-media campaigns based on data-driven technologies.

The Goldbach Group is listed on the SIX Swiss Exchange (Swiss Reporting Standard, security number 487094, ISIN CH0004870942, ticker symbol: GBMN), is based in Switzerland (Küsnacht ZH) and is active in German-speaking countries.

Further information:
http://www.goldbachgroup.com/en-us/investor-relations/financial-reports
http://www.goldbachgroup.com/en-us/investor-relations/ad-hoc-press-releases