Tradedoubler Year-end report January – December 2014

Tradedoubler launched new strategy to address a larger market
The Fourth quarter October-December 2014

  · A new strategy was launched, see page 2 for more information.
  · Net sales amounted to SEK 452 M (504). Excluding change related items, net
sales were SEK 462 M (504), a decrease of 8% or 13% adjusted for changes in FX
rates. More than half of the decline related to lower revenues from two pan
-European customers and reductions in non-core business. Change related items
referred to a SEK -10 M correction of the prepaid balance.
  · Gross profit, excluding change related items, was SEK 96 M (115), a decrease
of 16% or 20% adjusted for changes in FX rates. Gross margin was 20.8% (22.7).
  · Operating costs excluding depreciation and change related items, were SEK 85
M (99), a reduction of 14% or 19% adjusted for changes in FX rates — mainly an
effect of the headcount reduction at the end of 2013. FTEs at the end of Q4 2014
were 355 (449).
  · EBITDA, excluding change related items, was SEK 12 M (16).
  · A write-down of SEK -60 M in goodwill was incurred at year-end. Goodwill
after write-down amounted to SEK 324 M.
  · Earnings per share, before and after dilution, were SEK -1.79 (-0.48).
  · Cash flow from operating activities was SEK -22 M (74), of which SEK -22 M
was explained by changes in working capital.
  · Renegotiations with one major international client will have a negative
impact on revenue in 2015.

The full year 2014

  · Net sales amounted to SEK 1,753 (2,001) M. Net sales, excluding change
related items, were SEK 1,743M (2,001), a decrease of 13% or 18% adjusted for
changes in FX rates.
  · Excluding change related items, gross margin was 21.7 % (22.7) and gross
profit amounted to SEK 379 M (455), the latter was a decrease of 17% or 21%
adjusted for changes in FX rates.
  · Operating costs, excluding depreciation and change related items, were SEK
339 M (380). Change related items were SEK -18 M (-22) and EBITDA, excluding
these, was SEK 39 M (75).
  · A write-down of SEK -60 M in goodwill was incurred at year-end. Goodwill
after write-down amounted to SEK 324 M.
  · Cash flow from operating activities was SEK -110 M (126) and was affected by
a normalization of working capital.
  · Earnings per share, before and after dilution, amounted to SEK ‑1.95 (0.27).
  · The Board proposes that no dividend should be declared for 2014 (0.25 per
share).
  · Matthias Stadelmeyer was appointed permanent CEO. A new CFO, Tomas Ljunglöf,
was recruited externally.

Significant events after the period

  · Bertil Lundell was appointed as CTO. He has a strong track record in senior
product development roles and is a member of the executive management team.
  · Tradedoubler finalized its Nordic regional structure and closed its office
in Norway with limited costs.
  · The German technology company Adnologies was acquired to support the new
corporate strategy. Acquisition investments and expenditures as well as the
impact upon the Q1 results are expected to be limited.

FINANCIAL OVERVIEW, SEK M            Oct    Oct    Change  Full   Full   Change
                                     -Dec   -Dec   %2      year   year   %2
                                     2014   2013           2014   2013

Net sales excluding change related   462    504    -13%    1 743  2 001  -18%
items
Gross profit excluding change        96     115    -20%    379    455    -21%
related items
Gross margin (%)                     20,8%  22,7%          21,7%  22,7%
Operating costs excl. depr. and      -85    -99    -19%    -339   -380   -15%
change related costs
EBITDA excluding change related      12     16     -31%    39     75     -53%
items
EBITDA-margin (%)                    2,5%   3,2%           2,3%   3,8%
Change related items³                -13    -22            -20    -22
EBITDA                               -2     -6     -61%    20     53     -68%
Impairment goodwill                  -60    0              -60    0
Operating profit (EBIT)              -69    -22            -63    24

Net investments in non-financial     -7     -8             -17    -31
fixed assets
Cash-flow from operating activities  -22    74             -110   126
Liquid assets incl financial         372    506            372    506
investments, at period's end
Net cash1, at period's end           126    262            126    262

1 Current investment and liquid
assets less interest-bearing
liabilities
2 Per cent changes are adjusted for
changes in exchange rates
3 Change related items during Q4
2014 relates to a one-off cost of
SEK 3 M  referring to the strategy
launch and a one-time adjustment of
the prepayment balance of SEK -10 M,
reducing net sales. For further
information regarding change related
items see separate section in this
report.

CEO Matthias Stadelmeyer’s comments on the fourth quarter 2014
“Underlying Q4 gross profit in our core business developed in line with the
trend from recent quarters. Adjusted for FX-changes and change related items,
operating costs in 2014 were SEK 58 M lower than last year and compensated for
slightly more than half of the total gross profit decline. More than half of the
gross profit decline refers to non-core business and the two large pan-European
companies that left Tradedoubler during 2014.

We are continuously focusing on improving profitability and stabilising revenue
of our core business through increased operational efficiency. We have made good
progress on this during the quarter.

To ensure profitable revenue growth in the future, we launched a new business
strategy in November 2014. With this strategy we will improve our core offering
and build new functionalities to address a significantly larger market. As a
consequence, expenditures within product development will increase
significantly. The acquisition of the independent German technology company
Adnologies is another important step in the development of our strategy. Their
product portfolio perfectly complements our own.

We are making good progress on our journey to become the leader in generating
smarter performance marketing results for our clients through traffic,
technology and expertise."

Presentation

This Year-end report will be presented at a teleconference on the 6th of
February 2015 at 10.30 a.m. CET. To follow the presentation, please
dial (SE) +46 8 566 426 96, (UK) +44 203 428 14 09 or (US) +1 646 502 51 20.
The presentation may also be followed via webcast using the link:
http://financials.tradedoubler.com/en-gb/investorrelations

Other

Tradedoubler discloses the information provided herein pursuant to the Swedish
Securities Markets Act. The information was released for publication on the 6th
of February 2015 at 08.00 a.m. CET. Numerical data in brackets refers to the
corresponding periods in 2013 unless otherwise stated. Rounding off differences
may arise.