Tradedoubler : Annual report 2022

ANNUAL

REPORT

20

22

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The information in the annual report Contents

Tradedoubler AB (publ), 556575-7423, is a Swedish public limited liability company with its registered office in Stockholm. The company is subject to Swedish laws and as a listed company is obliged to comply with NASDAQ Stockholm's rules and regulations which govern information disclosure to the market.

All values are stated in Swedish kronor. Kronor expressed in millions is abbreviated to SEK M and kronor expressed in thousands is abbreviated to SEK '000. Numerical data in brackets refers to 2021 unless otherwise stated. Information about markets and the competitive situation is Tradedoubler's own assessment, unless a specific source is provided.

You can subscribe to press releases and financial reports on Tradedoubler's website.

The Annual Report is prepared in Swedish and translated into English. Should differences occur between the Swedish Annual Report and the English translation, the Swedish version shall prevail.

BOARD OF DIRECTORS' REPORT	4
SUSTAINABILITY REPORT	6
RISKS AND UNCERTAINTY FACTORS	7
CORPORATE GOVERNANCE	8
FINANCIAL INFORMATION
CONSOLIDATED ACCOUNTS	14
NOTES TO THE CONSOLIDATED ACCOUNTS	18
PARENT COMPANY ACCOUNTS	36
NOTES TO THE PARENT COMPANY ACCOUNTS	40
BOARD AND CEO'S SIGNATURES	46
AUDITOR´S REPORT	47
BOARD OF DIRECTORS	52
COMPANY MANAGEMENT	53
ALTERNATIVE PERFORMANCE MEASUREMENTS	54

A print version of the annual report may be ordered from:

Tradedoubler AB

Regeringsgatan 29 SE-111 53 Stockholm Tel. [phone]

E-mail: [e-mail]

5 year summary

SEK M	2022	2021	2020	2019	2018
Total revenue	1,640	1,421	1,235	1,209	1,173
Gross profit	346	277	255	264	264
Gross margin, %	21.1	19.5	20.6	21.9	22.5
Operating costs, excl.	-263	-212	-191	-212	-222
depreciation1, 2
EBITDA adjusted for	83	67	64	52	42
change related items2
Change related items	-4	-6	-2	-7	-3
EBITDA2	79	61	62	45	39

1. Adjusted for change related items.
2. 2018 and earlier periods has not been adjusted for IFRS 16.

Financial calendar

Annual General Meeting	17	May 2023
Interim report January-March 2023	5	May 2023
Interim report January-June 2023	20 July 2023
Interim report January-September 2023	3 November 2023
Year-end report 2023	9 February 2024

Overall financial comments

The group's total revenue during 2022 amounted to

SEK 1,640 M (1,421). This was an increase of 15 per cent or a change of 11 per cent adjusted for changes in exchange rates compared to 2022.

Gross profit amounted to SEK 346 M (277), which was an increase of 25 per cent or an increase of 20 per cent adjusted for changes in exchange rates.

EBITDA amounted to SEK 79 M (61).

Investments, mainly related to activated development expenses, amounted to SEK 30 M (30).

Operating profit (EBIT) amounted to SEK 43 M (28).

The sum of cash and interest-bearing financial assets at the end of 2022 amounted to SEK 93 M (94). Net cash was SEK 5 M (1).

Earnings per share, before and after dilution, amounted to SEK 0.54 (0.53).

The Board proposes that no dividend should be declared for 2022. No dividend was paid for 2021.

BOARD OF DIRECTORS' REPORT

Board of directors' report

The board of directors and the chief executive officer of Tradedoubler AB (publ), corporate registration number 556575-7423, hereby submit the annual accounts for the operations in the parent company and the group for the financial year 2022.

TRADEDOUBLERS OPERATIONS

Tradedoubler is an international leader in performance-based digital marketing and technology powering a unique network of connections. The company works with over 2,000 advertisers through its network of 180,000 publishers in over 80 coun- tries. In 2022, Tradedoubler generated SEK 37 bn incremental revenue for its clients through e-commerce and m-commerce.

a mutual agreement on the double taxation procedure as described in the Annual Report 2021 on page 28. The result of the agreement led to a cash tax refund of SEK 13 million received in the fourth quarter. In the second quarter of 2022, Tradedoubler acquired approximately 30% of the shares in the Swedish start-up Onbaz, with a platform for online video shopping.

Tradedoubler's business strategy

Tradedoubler operates within the dynamic environment of digital and mobile commerce, which is characterised by positive trends in both consumer and advertising expenditure. The digital marketing sector in Europe and worldwide is very dynamic. Channels such as social media, video and mobile continue to expand their market share and advertising is increasingly traded on an automated basis. This dynamic is influencing our business and, together with advances in technology, opens a range of new opportunities for our clients and us.

For advertisers and publishers who want to grow their business Tradedoubler offers performance marketing and technology solutions powering a unique network of connections. Combining over 20 years of digital marketing innovation and expertise and global presence Tradedoubler offer tailored performance solutions based on our clients' needs. Our market-leading integrated technology platform tracks online customer journeys. It creates data-driven insight that helps us deliver targeted performance advertising across multiple, high-quality digital channels:

• Industry-leadingaffiliate marketing network: Affiliate market- ing is a risk-free solution for advertisers looking to increase sales or leads as they only pay for results.
• White-labelpartner management platform: Our award- winning technology platform allows advertisers, publishers or agencies to manage partnerships directly themselves or setup and run their own private affiliate network.
• Campaign management: We offer performance-based campaigns tailored to our client's needs and based on programmatic and non-programmatic inventory. From lead generation to display, native advertisement, video and app install.
• Market-leadingbusiness intelligence: Data-driven insights including user journey reporting and analysis to optimise digital ad spend for the best return across all channels.

Building and growing relations is our lifeblood and our key expertise for more than 20 years. 294 employees based in 15 offices connect advertisers and publishers in more than 80 countries around the globe to grow their business.

SIGNIFICANT EVENTS DURING THE YEAR

The tax authorities in Sweden and Spain met during the 2022

4 Tradedoubler Annual Report 2022

TRADEDOUBLER'S CURRENT POSITION

In 2022, Tradedoubler has made significant progress in its operations and has shown double-digit growth in both sales and gross profit, for the second year in a row. The travel segment, which was initially hit very hard during the pandemic, has during 2022 recovered to pre-pandemic levels.

GROUP RESULTS

If not explicitly stated, the disclosed financial information refers to reported numbers not adjusted for change related items nor changes in exchange rates. For comparability reasons and to indicate the underlying performance, Tradedoubler adjust for change related items. For more information, see page 6.

Consolidated total revenue during 2022 were SEK 1,640 M (1,421), which was an increase of 15 per cent or 11 per cent adjusted for changes in exchange rates.

Gross profit for the year amounted to SEK 346M (277). Gross profit adjusted for change related items during the year was SEK 279 M (255) an increase of 25% or 20% adjusted for changes in exchange rates. Gross margin amounted to 21.1% (19.5). The biggest reason for the higher gross margin is more short-term,high-margin campaigns. Operating costs excluding depreciation and change related items during the year was SEK 263 M (212), an increase of 24% or 21% adjusted for changes in exchange rates.

Operating profit before depreciation and amortisation (EBITDA) during the year amounted to SEK 79 M (61). Adjusted for change related items, EBITDA was SEK 83 M (67). Depreciation and amortisation were SEK 36 M (33).

Operating profit thus amounted to SEK 43 (28) M in 2022.

CASH FLOW AND FINANCIAL POSITION

Cash flow from operating activities before changes in working capital, referring to EBITDA reduced by paid taxes, paid interest and non-cash items amounted to SEK 79 M (40) during the year. The cash flow was positively affected by the tax refund of SEK 13 million. Changes in working capital were SEK -20 M (17).

Net investments in tangible and intangible fixed assets (CAPEX), mainly related to product development, were SEK -32(-30) million during the year. Investments in financial fixed assets

BOARD OF DIRECTORS' REPORT

amounted to SEK -9(-3) million during the year and were mainly affected by the investment in a convertible loan of SEK 5 million related to Kaha GmbH, a German influencer marketing company. The cash flow amounted to SEK -9 (2) million.

Cash and cash equivalents at the end of the year amounted to SEK 93 M (94). Interest-bearing liabilities amounted to SEK 88 M

1. and relates to the loan agreements with Reworld Media S.A..
   Net cash hence amounted to SEK 5 M (1) at the end of the year.

Consolidated shareholders' equity amounted to SEK 308 M (261) at the end of the year and the equity/asset ratio was 29.9 per cent (28.3). The return on equity during the rolling 12 months ending December 2022 was 8.5 per cent (9.8).

EMPLOYEES

On December 31, 2022, Tradedoubler's staff corresponded to 294 (264) full-time equivalents (FTE) and included permanent and temporary employees as well as consultants.

CHANGE RELATED ITEMS

For comparability reasons and to indicate the underlying perfor- mance, Tradedoubler adjusts for change related items. The following items affect the comparability in this report.

Change related items in 2022 amounted to SEK -3.8 M, where of -0.7 MSEK relates to costs linked to Reworld Media's share program to key management personnel which is described on page 8 in the Annual report 2021. SEK -1.9 M is related to severance payments. SEK -1.1 M that corresponds to an additional purchase price for the acquisition of the customer list that laid the foundation for the Appiness. Additional costs are because the revenue stream is higher than what could be assumed in connection with the agreement being concluded in 2020. The agreement has now been concluded.

Change related items in the year 2021 amounted to SEK -6.3 M, where SEK -3.3 M related to costs linked to Reworld Media's share program to key management personnel, SEK -2.2 M relates to a decrease in revenue due the Swedish Agency for Economic and Regional Growth, reclaimed the grants contributed in 2020 for the short working hour scheme. SEK -0.7 M

was costs related to not renewing an office lease and severance payment over multiple segments.

For more information, see Note C25.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

No significant events have occurred since the end of the reporting period.

THE PARENT COMPANY

The parent company's total revenue amounted to SEK 135 M

1. during 2022. Revenue primarily consisted of internal licens- ing revenue to subsidiaries.

Operating profit (EBIT) amounted to SEK 12 M (14) during 2022. Net financial items amounted to SEK -7M(-20). Dividends from group companies were SEK 3 M (4) and changes in exchange rates have impacted pre-tax profit in 2022 with SEK -7 M (-4). During the fourth quarter of 2021, a write-down of shares in subsidiaries was made, which affected earnings by SEK 25 M. Profit after tax amounted to SEK 5 M (-6) during 2022.

The parent company's receivables from group companies amounted to SEK 201 M (178) at end of 2022, of which none

1. were non-current. The parent company's liabilities to group companies were SEK 121 M (98), of which none (0) were non- current. Cash and cash equivalents amounted to SEK 55 M (45) at the end of 2022.

Deferred tax assets amounted to SEK 0 M (0,1) at the end of 2022. No capitalisation of deferred tax on loss has been made since the assessment of the possibility of using deferred tax on loss carry forwards is unchanged compared to previous periods.

THE SHARE AND OWNERSHIP

Tradedoubler's share is listed on NASDAQ Stockholm since 2005 and is traded on the list for Small Cap companies. The share is classified as Information Technology. The share capital on 31 December 2022 amounted to SEK 18.4 M (18.4) distributed among 45,927,449 (45,927,449) shares, each with a quota value of SEK 0.40. All shares carry equal rights to share in the

Total revenue (SEK M)

Gross margin (%)

SEK M
2000						25
					1,640
1500						23
	21.9%		1,421
	22.5%	1,209	1,235
	1,173			21
1000			20.6%		21.1%
				19.5%		19
500						17
0	2018	2019	2020	2021	2022	15

EBITDA (SEK M)

EBITDA/Gross profit (%)

Excluding change related items

SEK M
90					83	28
80						24
			24%	24%	24%
70
	20%	64	67		20
60
50	14%	52				16
40	42
					12
30
						8
20
10						4
0	2018	2019	2020	2021	2022	0

Tradedoubler Annual Report 2022

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