Market decline and capital injection - Mobylifemobylife.com/images/Interim_report_for_1_January_-_30...Mobylife Holding A/S, Sydmarken 32F, DK-2860 Søborg, CVR NO. 35254552 PAGE 1

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Mobylife Holding A/S, Sydmarken 32F, DK-2860 Søborg, CVR NO. 35254552 PAGE 1 OF 22

Interim Report for

1 January - 30 June 2015 COMPANY ANNOUNCEMENT NO. 03/2015 – 13 August 2015

Market decline and capital injection Mobylife has experienced a general market decline throughout 2015, deviating from historic seasonality. This has led to a decline in revenue, significantly impacting earnings due to delayed cost reduction. At the same time Mobylife is suffering from the significant accounting errors identified in two of the subsidiaries November 2014 impacting baseline negatively. As a consequence of this, Mobylife has completed a restructuring of the debt together with the Bond holders. This includes an equity injection by the existing shareholders of DKK 50 million, and a DKK 25 million bond buy-back program. The number of repairs in the period 1 January – 30 June amounted to 580k, compared to 342k in the same period last year. Revenue YTD amounted to DKK 270.5 million, which was an increase of DKK 148.1 million compared to the same period last year. EBITDA YTD amounted to DKK 9.0 million, an increase of DKK 8.8 million over same period last year. The cash flow from operating activities improved by DKK 15.1 million compared to last year.

The negative markets indications from Q1 have worsened and continued during Q2. Mobylife is now expecting the repair volumes realised YTD to continue as a run rate in the foreseeable future. The brand mix of devices has been stable, and Top3 brands are covering 77% of the total repairs. A customer in Denmark representing approximate 5% of the group revenue has decided to change vendor, impacting the results negatively from September 2015. Mobylife is addressing the challenges in the market by optimizing the existing business through capacity adjustments according to reduced volumes, as well as identifying and launching new services that can create value to our customers. Mobylife expects to continue gain new customers to the existing business in 2015, where also new services will be launched in Q1 2016.

The previously communicated EBITDA outlook is updated based upon the above mentioned market development. Mobylife expects to be within the amended covenant threshold at 31 December 2015

“We are pleased to announce that the shareholders stand behind the business with new capital, enabling us to look

forward. It has been a tough period realizing a market decline, and at the same time trading significantly below

expectations following the significant errors. The Q2 result stand alone is not satisfactory, which also has led to cost

reductions executed in June. The loss of a key customer in Denmark is also very disappointing. However, we

continue to see many opportunities for value creation based on our market position, new business development

initiatives and synergies being realised across the Nordics to the benefit of our customers”, says Martin Pedersen,

CEO.

HIGHLIGHTS YTD 2015 vs. same period 2014

Net revenue YTD increased by 121%

EBITDA YTD amounted to DKK 9.0 million, an increase of DKK 8.8 million.

EBIT YTD amounted to DKK 2.3 million, an increase of DKK 16.0 million.

Profit before tax YTD amounted to DKK 9.2 million, an improvement of DKK 24.8 million.

Free cash flow YTD amounted to DKK (18.6) million, compared to DKK 71.8 million last year.

Net interest-bearing debt YTD amounted to DKK 219.9 million, a reduction of DKK 29.7 million.

OUTLOOK - August Aug Outlook

2015 Mar Outlook

2015 Actual

2014

Net revenue (mDKK) 565-590 590-615 408

EBITDA (mDKK) 30-40 50-65 24

EBIT (mDKK) 15-25 40-55 6

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Mobylife Holding A/S, CVR NO. 35254552 COMPANY ANNOUNCEMENT NO. 3/2015 - PAGE 2 OF 22

INTERIM REPORT FOR 1 JANUARY - 30 JUNE 2015

For further information on this announcement: Martin Pedersen, CEO, tel. +45 2621 2121 Martin Nyberg, CFO, tel. +45 2929 8200

Mobylife will host a conference call on 17 August 10.00 CET. Dial in +45 81 11 12 13, pin: 35254552

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CONTENTS

Page

Highlights 1

Financial Highlights and Key Ratios 4

Management’s Review 5

Financial Review 6

Bond compliance 8

Business changes 10

Outlook 10

Statement by the Supervisory and Executive Boards on the Interim Report 11

Financial Statements

Income Statement 12

Statement of Comprehensive Income 13

Assets & Liabilities and Equity 14

Cash Flow Statement 16

Statement of Changes in Equity 17

Notes 18

Financial Highlights and Key Ratios for the Period 1 January – 31 March 2014 – 2015 21

Practical Information

Financial Calendar 22

Disclaimer 22

Mobylife Holding A/S repair mobile devices across Denmark, Sweden, Norway and Finland. The Group is authorised by all major

OEM brands and has repair agreements with a large number of Telco-operators, retailers and insurance companies. The Group has local

service sites in each country and has a combined annual turnover of DKK 595 million and a repair volume of 1.3 million devices, based

on 2014 pro forma figures from each company.

Mobylife Holding A/S was founded 6 June 2013 under the name Telecare Holding A/S, as owner of Telecare Service A/S. In

May 2014 the group was expanded through two acquisitions, PJJ Holding Oy in Finland and Deltaservice AS in Norway.

To read more, visit www.mobylife.com/corporate

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FINANCIAL HIGHLIGHTS AND KEY RATIOS

(Q1-Q2 2015 unaudited)

1/1 - 30/6

2015

1/1 - 30/6

2014

1/4 - 30/6

2015

1/4 - 30/6

2014

1/1 - 31/12

2014

Number of repairs (‘000) 580 342 309 189 1,006

Income Statement (mDKK)

Net revenue 270.5 122.4 141.0 76.9 408.4

EBITDA before special items 9.0 0.2 (0.3) 5.1 23.9

EBITDA after special items 4.6 (10.1) (3.2) (5.2) 9.5

Earnings before interest and tax (EBIT) 2.3 (13.7) (4.3) (8.1) 5.5

EBIT margin (%) 0.9 (11.2) (3.0) (10.5) 1.3

Other financials, net 6.8 (1.9) 18.8 (1.9) 16.2

Profit before tax 9.2 (15.6) 14.6 (10.0) 21.7

Profit for the period 11.0 (14.4) 16.6 (9.9) 15.7

Balance Sheet (mDKK)

Non-current assets 389.9 371.9 389.9 371.9 372.6

Total assets 514.7 507.1 514.7 507.1 493.3

Equity 125.1 91.2 125.1 91.2 112.9

Net interest-bearing debt 219.9 249.6 219.9 249.6 219.0

Net working capital (26.6) 15.4 (26.6) 15.4 (9.7)

Cash Flows (mDKK)

From operating activities (4.0) (19.1) (8.2) 5.0 (5.5)

From investing activities (14.4) (254.7) (5.5) (254.1) (276.7)

From financing activities (0.2) 345.5 (0.2) 323.5 345.9

Free cash flow (18.6) 71.8 (13.9) 64.3 63.7

Financial ratios (%)

Free cash flow as a percentage of net revenue (6.8) (223.7) (9.7) (337.1) (69.1)

Cash conversion (29.6) 29.8 (30.6) 17.8 48.1

Equity ratio 24.3 18.0 24.3 18.0 22.9

Ratios have been calculated according to the “Recommendations and Financial Ratios 2010” issued by the Danish Society of

Financial Analysts.

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MANAGEMENT’S REVIEW

STRATEGIC MAIN PRIORITIES FOR 2015

Mobylife will in 2015 continue its focus on maintaining a strong Nordic market presence. The main strategic priorities are: Strengthening relationships with customers

Securing customer service levels

Expanding working relationships with customers

Post-Merger Integration

Nordic finance & performance platform

Common IT platform

Operational efficiency:

Maintaining efficiency and achieving economies of scale

Optimisation of capital resources:

Continued focus on optimising working capital

BUSINESS DEVELOPMENT

The repair volume in Q2 has been lower than expected across all 4 countries. Mobylife has been over-delivering on repair time when compared to the agreed service levels with our customers, and throughout Q2 there has been a strong focus on strengthening customer relationships. Unfortunately, a Danish customer representing approximate 5% of the group revenue has decided to change vendor, impacting the results negatively from September 2015. Due to lower repair volume realized in both Q1 and Q2 Mobylife executed a staff reduction end of June across all countries and functions. Following the implementation of the staff reduction, Mobylife has continued to monitor operational performance closely, ensuring delivery of satisfactory customer service levels during the summer period. As a result, service levels have improved substantially compared to the same period last year, despite the staff reductions and use of temps during the vacation period. Mobylife has during Q2 succeeded in implementing the ETEL IT platform across two sites, Esbjerg (DK) and Ljungby (SE), thus securing a common operations IT platform across all Scandinavian sites. This is a key milestone in the post-merger integration enabling seamless service integration and development of new service features across the Scandinavian market as well as supporting higher productivity at the repair sites. The IT transformation will continue during Q3 and be completed in Q4. The decline in the volume of authorised repairs is partly driven by a growing number of small unauthorised repair shops offering relatively cheap repairs close to the customer. Following the end of the reporting period, one of the major OEMs has launched an initiative to counter the proliferation of unauthorised repairs. Whilst it is too early to conclude on the impact of this initiative, Mobylife is monitoring the development closely with a view to capitalise on any regained market shares for authorised repairs. As of now, Mobylife continues to operate exclusively as an authorised repair agent maintaining close ties with all major mobile device OEMs. As part of the strategy, Mobylife has actively been working on introducing new value-added services in order to strengthen the Company’s customer value proposition vis-à-vis competitors. These activities have led to the introduction of two new services in Q2, which is expected to contribute positively to revenue at a later stage. Going forward, Mobylife will continue to focus on bringing new services to the market that can add value to the customers. Mobylife has confirmed the claim towards the sellers of Telecare Service A/S, as the claim has now been delivered at Danish Institute of Arbitration, following the specification of the SPA. There has not yet been set a hearing- or court date.

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FINANCIAL REVIEW

INCOME STATEMENT

Developments in activities for the period 1 January – 30 June 2015

1/1 - 30/6 2015 1/1 - 30/6 2014

Sales (Repair orders ‘000) 580 342

Growth (%) 70% -

Net revenue (mDKK) 270.5 122.4

Growth (%) 121% -

Gross Profit 87.4 43.1

Personnel costs (mDKK) 78.4 42.9

EBITDA (mDKK) before special items 9.0 0.2

EBITDA (mDKK) after special items 4.6 (10.1)

EBIT (mDKK) 2.3 (13.7)

EBIT margin (%) 0.9 (11.2)

The volume in the period 1 January – 30 June 2015 was 580k orders, an increase of 70% compared to the 2014

figure. Net revenue was 121% higher in the period 1 January - 30 June 2015 than in the same period in 2014, amounting to DKK 270.5 million compared to DKK 122.4 million in 2014. Gross profit for the period 1 January – 30 June 2015 was DKK 87.4 million, an increase of DKK 44.3 million compared to the same period last year. Gross Profit margin (%) decreased by 2.9 percentage points, and amounted to 32.3% for the period 1 January – 30 June 2015. This development is due to changed brand mix in the Group following the acquisitions combined with sale of spare parts having a lower margin. Personnel costs for the period 1 January – 30 June amounted to DKK 78.4 million, which was DKK 35.5 million above the 2014 figure. In addition there has been increased activity in development projects where internal hours have being capitalised. The personnel costs-to-sales ratio in the period 1 January – 30 June 2015 amounted to 29%, compared to 35% in the same period last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period 1 January – 30 June 2015 was DKK 9.0 million, an improvement of DKK 8.8 million compared to the 2014 figure covering the same period. Mobylife has during Q1 and Q2 realized lower volumes than expected, but has due to the unpredictability in volumes and continued focus on customer satisfaction been hesitant to reduce costs at once. The cost reduction implemented end June as not yet impacted the results. Earnings before interest and tax (EBIT) amounted to DKK 2.3 million for the period 1 January – 30 June 2015, which was DKK 16.0 million above the 2014 figure. Throughout Q1 and Q2 2015, there have been non-recurring and special items as of DKK 4.4 million, primarily related to legal cost associated to bond terms and conditions renegotiation, IFRS conversion and Accounting one-time items, and re-organization.

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BALANCE SHEET

Mobylife is founded on the acquisition of Telecare Service A/S in 2013, and later in May 2015 the acquisitions of Deltaservice Holding AS and PJJ Holding Oy. The acquisitions 2013 was financed through equity, a shareholder loan and loan at credit institutions. The acquisitions made May 2014 was financed by issuing of a SEK 350 million bond and new equity of DKK 74.8 million, and at the same time elimination of previous debt to credit institutions. Mobylife’s balance sheet amounted to DKK 514.7 million as at 30 June 2015, which was an increase of DKK 15.4 million from 31 March 2015. The main driver has been the development of the IT platform project, and the development in trade receivables and payables, following a negative cash generation in total. The working capital has developed negatively in Q2, where the increase in payables has been higher than the increase in receivables, in addition to inventory being stable. The YTD equity ratio amounted to 24.3% compared to 21.7% as at 31 March 2015. Equity at 30 June 2015 amounted to DKK 125.1 million. According to IAS39 under IFRS, the bond debt has been obtained to fair market value, based upon market pricing. The bond debt at fair market value amounts to DKK 226.7 million as at 30 June 2015, which is a deduction compared to 31 March 2015. The bond market price has been reduced from index 89 as at 31 March 2015, to index 80 as at 30 June 2015. Net interest-bearing debt was in Q2 2015 reduced by DKK 10.0 million, primarily due to the development in the market price of the bond debt, An important notice: As part of the amended terms and conditions negotiated with, and approved by the bond holders, bond debt will be included in covenant calculations based upon nominal value. The amended terms and conditions will not lead to a change in applied accounting principle. Please also note, that the capital injection, which has taken place on 13 August, is not reflected in the reported numbers. This will be reported first time together with Q3 reporting. CASH FLOW STATEMENT

The Q2 result is reflecting the realised repair volume being below expectations leading to a negative EBITDA, in

addition to ongoing development projects. Free cash flow has therefor been negative. Cash flow from operating

activities for the period 1 January – 30 June 2015 amounted to DKK (4.0) million, compared to DKK 4.2 million

for Q1 2015.

The Cash flow from investing activities for the period 1 January – 30 June 2015 amounted to DKK (14.4) million,

where Q2 encountered for DKK (5.5) million. The relative reduction compared to Q1 is related to two post-

merger projects ended in Q1.

The Cash flow from financing activities for the period 1 January – 30 June 2015 amounted to DKK (0.2) million,

compared to last year when the level was at DKK 345.5 million. The cash flow from financing activities last year

was impacted by bond proceeds and capital increase related to the two acquisitions made May 2014.

Free cash flow for the period 1 January – 30 June 2015 amounted to DKK (18.6) million compared to DKK (13.9)

million in Q2 stand alone.

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BOND COMPLIANCE During Q2 Mobylife issued two written procedures, where the first was withdrawn. The second written procedure included an amended terms and conditions for approval by the bond holders. The written procedure was approved by the bond holders at 17 July 2015, where all votes received was in favour of the proposed changes, approving the amended terms and conditions. Mobylife are pleased to inform, that the requirements stated below in order for the amended terms and conditions to become effective, are now fulfilled, and latest by an equity injection that has taken place today, 13. August 2015. Mobylife therefor expects that the effective date will be set at 17 August. Post the the equity injection, the executive management has acquired 2.4% of the shares in the Company from CataCap as part of a management incentive programme. CataCap post the capital increase hold 83.4% of the shares. The main amendments to the terms and conditions are:

it is explicitly stated that the bond debt shall in any calculations relating to the Net Debt to EBITDA ratio be valued at its total aggregate nominal amount outstanding at the relevant time;

an obligation of the Issuer to offer to repurchase notes in an amount of at least 50% of the amount of the Equity Injection;

an obligation of the Issuer to pay 50 % of the net proceeds of certain litigation into the account being pledged under an account pledge agreement and to offer to repurchase Notes once the amounts standing to the credit of such account exceeds SEK 10,000,000;

a temporary ease in the leverage ratio requirement to 7.00:1 until but excluding 31 December 2016 in combination with a postponement of the first test date for the financial covenants to 31 December 2015; and

there will be no covenant test as at 30. June 2015. The next covenant test will take place 31. December 2015.

a postponement of the requirement to admit the Notes to trading on the Regulated Market of NASDAQ OMX (to occur on 23 November 2015 at latest).

The new covenant thresholds are:

from and including 31 December 2015 to but excluding 31 December 2016, that the Net Debt to EBITDA Ratio is lower than 7.00:1.00;

from and including 31 December 2016 to but excluding 31 December 2017, that the Net Debt to EBITDA Ratio is lower than 4.25:1.00; and

from and including 31 December 2017 to but excluding the Final Maturity Date, that the Net Debt to EBITDA Ratio is lower than 3.25:1.00,

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And the following definition has been agreed upon, where bond debt is included at nominal value, regardless of the development in the fair market value.

a market based exchange rate between the applicable currencies as published by the Swedish Central Bank (Riksbanken) on its website, including between DKK/SEK; and

the total aggregate nominal amount of Notes outstanding at the relevant test date, irrespective of any requirements in the Accounting Principles to the contrary.

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BUSINESS CHANGES

As of 13 August 2015 there has been an update to the ownership structure

Following the equity injection of DKK 50 million that took place 13 August 2015, the following ownership structure has been implemented:

83.4% CC Orange Invest Aps

14.2% Co-investors 2.4% Management As of 11 August 2015 there has been an update to the ownership structure

Catacap has through CC Orange Invest Aps bought all shares from Due Andersson Holding Aps. Catacap hereafter holds 74.7% of the nominal value of shares in Mobylife Holding A/S.

OUTLOOK - AUGUST Overall, the volume in Q2 has not been in line with expectations, due to market development impacted by both

competition and volume development. The market development experienced in Q1 and Q2 is therefor expected

to continue during the rest of the year, and thus impacting the ability to deliver significant growth within 2015.

In addition the outlook is negatively impacted by the announced churn in Denmark from a Top3 customer,

leading to loss of market share. The outlook for 2015 is based upon the following business and market assumptions:

Repair volumes at a significant reduced level compared to previous outlook

Maintain current market shares across the group, except for Denmark

No loss of significant customers, except for the announced loss in Denmark

Improved efficiency and reduced costs following integration projects and cost reductions

No change in legislation and/or regulation of the mobile device repair business

Aug Outlook

2015 Mar Outlook

2015 Actual

2014

Net revenue (mDKK) 565-590 590-615 408

EBITDA (mDKK) 30-40 50-65 24

EBIT (mDKK) 15-25 40-55 6

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STATEMENT BY THE SUPERVISORY AND EXECUTIVE BOARDS ON THE INTERIM REPORT

The Executive and Supervisory Boards have been presented the Interim Report of Mobylife Holding A/S. The Interim Report has today been considered and adopted. The Interim Report, which has not been audited or reviewed by the Company’s independent auditors, was prepared in accordance with IFRS. In our opinion, the Interim Financial Statements give a true and fair view of the financial position of the Group as at 30 June 2015 as well as of the results of the Group operations and cash flows for the period 1 January – 30 June 2015. In our Opinion, the Management Review gives a true and fair account of the development in the activities and financial circumstances of the Group, of the results of operations for the period and of the overall financial position of the Group, and a description of the key risks and uncertainties facing the Group. Søborg, 13 August 2015 Executive Board Martin Pedersen CEO Supervisory Board

Mads Middelboe Vilhelm Hahn-Petersen Chairman Deputy Chairman Jacob Thygesen Peter Ryttergaard

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INCOME STATEMENT (MDKK)

1/1 - 30/6

2015 1/1 - 30/6

2014 1/4 - 30/6

2015 1/4 - 30/6

2014 1/1 - 31/12

2014

Net revenue 270.5 122.4 141.0 76.9 408.4

Production costs (164.1) (70.6) (93.5) (43.1) (230.3)

Other external costs (19.0) (8.7) (9.4) (4.6) (29.1)

Gross profit 87.4 43.1 38.1 29.2 149.0

Personnel costs (78.4) (42.9) (38.4) (24.1) (120.7)

Other operating expenses 0.0 0.0 0.0 0.0 (4.4)

Depreciation and Amortisation of tangible and intangible fixed assets

(2.3) (3.6) (1.1) (2.9) (4.0)

Operating profit / (loss) before special items

6.7 (3.4) (1.4) (2.2) (19.9)

Special items, note 4 (4.4) (10.3) (2.9) (10.3) (14.4)

Operating Profit / (loss) after special items

2.3 (13.7) (4.3) (8.1) 5.5

Financial income /expenses, net 6.8 (1.9) 18.8 (1.9) 16.2

Profit before income tax 9.2 (15.6) 14.6 (10.0) 21.7

Income tax 1.9 1.2 2.1 0.1 (6.0)

Profit 11.0 (14.4) 16.6 (9.9) 15.7

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STATEMENT OF COMPREHENSIVE INCOME (MDKK)

1/1 - 30/6

2015 1/1 - 30/6

2014 1/4 - 30/6

2015 1/4 - 30/6

2014 1/1 - 31/12

2014

Net profit for the period 11.0 (14.4) 16.6 (9.9) 15.7

Other comprehensive income

Value and exchange adjustments of foreign group enterprises 1.1 (0.1) (0.6) (0.1) (0,4)

Other comprehensive income after tax 1.1 (0.1) (0.6) (0.1) (0.4)

Total comprehensive income 12.2 (14.5) 16.0 (10.0) 15.3

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ASSETS (MDKK)

30/6 2015 30/6 2014 31/3 2015 31/3 2014 31/12 2014

ASSETS

Goodwill 337.9 337.9 337.9 84.9 337.9

Development projects 0.0 11.2 17.8 0.0 11.2

Software 26.5 0.0 3.6 0.0 1.9

Land and buildings 3.6 3.6 3.6 0.0 3.6

Plant and machinery 5.7 11.5 6.0 6.1 6.2

Leasehold improvements 2.0 0.0 2.4 2.4 2.5

Other receivables 2.1 0.0 2.1 0.8 1.8

Deferred tax assets 12.1 7.7 10.6 10.3 7.5

Non-current assets 389.9 371.9 384.0 104.5 372.6

Inventories 12.5 8.6 12.4 3.4 11.7

Trade receivables 68.6 50.8 51.7 28.4 56.1

Tax receivables 1.4 0.3 0.7 0.3 0.3

Other receivables 7.8 22.3 7.8 0.0 4.5

Prepayments 12.5 4.5 6.7 1.1 7.6

Cash in bank and in hand 22.1 48.7 36.0 0.0 40.6

Current assets 124.8 135.2 115.3 33.2 120.7

Total assets 514.7 507.1 499.3 137.7 493.3

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LIABILITIES AND EQUITY (MDKK)

30/6 2015 30/6 2014 31/3 2015 31/3 2014 31/12 2014

LIABILITIES AND EQUITY

Share capital 10.6 10.6 10.6 3.7 10.6

Share premium account 67.4 67.4 67.4 0.0 67.4

Other reserves 0.7 (0.1) 0.6 0.0 (0.4)

Retained earnings 46.4 13.3 29.8 14.7 35.4

Equity 125.1 91.2 108.4 18.4 112.9

Bonds / Credit institutions 226.7 284.4 250.4 0.0 244.7

Vendor loan 14.8 13.6 14.4 13.3 14.1

Finance lease debt 0.5 0.3 0.7 0.4 0.8

Deferred tax liabilities 1.5 3.8 1.5 0.0 0.0

Non-current liabilities 243.4 302.1 267.0 13.7 259.6

Credit institutions 0.0 0.3 0.0 15.6 0.0

Bonds 2.0 0.0 2.7 0.0 2.1

Vendor loan 0.0 0.0 0.0 36.0 0.0

Trade payables 76.3 52.3 53.5 16.3 44.8

Current income tax liabilities 3.8 5.7 4.6 0.0 9.3

Finance lease debt 0.8 0.0 0.7 0.3 0.7

Other payables 63.3 55.5 62.4 37.5 63.8

Deferred revenue 0 0.0 0.0 0.0 0.2

Current liabilities 146.2 113.8 123.9 105.7 120.8

Total liabilities 389.6 415.9 390.9 119.4 380.4

Total liabilities and equity 514.7 507.1 499.3 137.8 493.3

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CASH FLOW STATEMENT (MDKK)

1/1 - 30/6

2015 1/1 - 30/6

2014 1/4 - 30/6

2015 1/4 - 30/6

2014 1/1 - 31/12

2014

Note

Profit / (loss) for the period 11.0 (14.4) 16.6 (9.9) 15.7

Adjustments for non-cash operating items 2 (4.6) (1.7) (19.1) (1.2) (3.5)

Change in working capital 3 9.0 (1.2) 0.9 7.9 (1.0)

Cash flow from operating activities before

financial items and expenses 15.4 (17.3) (1.7) (3.2) 11.1

Interest paid (11.3) (1.9) (5.6) (1.9) (17.3)

Interest recieved 0.0 0.1 0.0 0.1 (1.2)

Income tax paid (8.0) 0.0 (0.9) 0.0 (0.5)

Cash flow from operating activities (4.0) (19.1) (8.2) (5.0) (5.5)

Acquisition of subsidiary, net of cash

acquired 0.0 (253.1) 0.0 (253.1) (253.1)

Purchases of property, plant and equipment (0.7) (1.6) (0.3) (1.0) (9.4)

Purchases of intangible assets (13.7) 0.0 (5.2) 0.0 (13,2)

Raising of financial fixed assets 0.0 0.0 0.0 0.0 (0.9)

Cash flow from investing activities (14.4) (254.7) (5.5) (254.1) (276.7)

Proceeds from issuance of bonds 0.0 284.4 0.0 284.4 284.4

Proceeds from borrowings 0.0 0.0 0.0 (22.1) 0.0

Proceeds from leasing debt (0.2) 0.0 (0.2) (9.8) 0.7

Repayment of borrowings 0.0 (13.6) 0.0 (3.8) (14.0)

Capital increases 0.0 74.8 0.0 74.8 74.8

Cash flow from financing activities (0.2) 345.5 (0.2) 323.5 345.9

Net(decrease ) /increase in cash and cash

equivalents (18.6) 71.8 (13.9) 64.3 63.7

Cash and cash equivalents at beginning of

year 40.6 (23.1) 36.0 (15.6) (23.1)

Cash and cash equivalents at 30June 22.1 48.7 22.1 48.7 40.6

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STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD 1 JANUARY – 30 JUNE 2015 (TDKK)

Share Share Other Retained Total

Capital Premium Reserves earnings Equity

Balance as at 1 January 2015 10.6 67.4 (0.4) 35.4 112.9

Profit for the period - - - 11.0 11.0

Other comprehensive income for the period - - 1.1 - 1.1

Balance as at 30 June 2015 10.6 67.4 0.7 46.4 125.1

Balance as at 1 January 2014 3.7 - - 19.1 22.8

Profit for the Year - - - 15.7 15.7

Other comprehensive income for the year - - (0.4) - (0.4)

Total comprehensive income for the year 3.7 - (0.4) 34.8 38.1

Capital reduction for distribution to

shareholders (0.6) - - 0.6 -

Capital increase (7.5) 67.4 - - 74.8

Balance as at 31 December 2014 10.6 67.4 (0.4) 35.4 112.9

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NOTES ON THE INTERIM REPORT

Note 1 – Significant Accounting Policies; Accounting Estimates and Judgements

ACCOUNTING POLICIES

The present interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, as

adopted by the EU, and Danish regulations governing presentation of interim reports by listed companies.

The consolidated financial statements have been prepared using the same accounting policies as the

consolidated financial statements for 2014. The consolidated financial statements for 2014 contain a complete

description of the accounting policies to which reference is made.

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Note 2 – Cash Flow Statement (mDKK)

1/1 - 30/6

2015 1/1 - 30/6

2014 1/4 - 30/6

2015 1/4 - 30/6

2014 1/1 - 31/12

2014

Adjustments for non-cash operating items

Depreciations 2,3 3.6 1.2 2.9 4.0

Financial income / Expenses, net (6.8) 1.9 (18.8) 1.9 (16.2)

Accrued interests vendor loan 0.6 0.0 0.3 0.0 1.0

Income tax for the period (1.9) (1.2) (2.1) (0.1) 6.0

Other adjustments 1.1 (4.9) 0.1 -(4.9) 1.7

Total (4.6) 1.7 (19.1) (1.2) (3.5)

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Note 3 – Cash Flow Statement (mDKK)

1/1 - 30/6

2015 1/1 - 30/6

2014 1/4 - 30/6

2015 1/4 - 30/6

2014 1/1 - 31/12

2014

Change in working capital

Change in inventories (0.6) (19.5) (0.2) (13.1) (6.5)

Change in receivables (19.7) 3.4 (22.6) 1.7 (38.5)

Change in payables 29.3 14.9 23.7 19.3 44.0

Total 9.0 (1.2) 0.9 7.9 (1.0)

Note 4 – Income statement (mDKK)

1/1 - 30/6

2015 1/1 - 30/6

2014 1/4 - 30/6

2015 1/4 - 30/6

2014 1/1 - 31/12

2014

Operating items:

Transaction costs, Delta Group 0.0 (4.4) 0.0 (4.4) (4.4)

Transaction costs, Optima Group 0.0 (3.6) 0.0 (3.6) (3.6)

Non-recurring: Theft and inventory losses 0.0 0.0 0.0 0.0 (2.5)

Non-recurring: Legal dispute, Significant errors 0.0 0.0 0.0 0.0 (0.2)

Non-recurring: Bond prospect and waiver(s) (0.8) 0.0 (0.8) 0.0 0.0

Non-recurring: IFRS conversion and accounting

non-recurring costs (1.7) 0.0 (1.0) 0.0 0.0

Non-recurring: Re-organisation (1.9) (2.3) (1.1) (2.3) (3.7)

Total (4.4) (10.3) (2.9) (10.3) (14.4)

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FINANCIAL HIGHLIGHTS AND KEY RATIOS

1 January – 30 June

2015 2014

Number of repairs (‘000) 580 342 - - -

Income Statement (mDKK)

Net revenue 270.5 122.4 - - -

EBITDA before special items 9.0 0.2 - - -

EBITDA after special items 4.6 (10.1) - - -

Earnings before interest and tax (EBIT) 2.3 (13.7) - - -

EBIT margin (%) 0.9 (11.2) - - -

Other financials, net 6.8 (1.9) - - -

Profit before tax 9.2 (15.6) - - -

Profit for the period 11.0 (14.4) - - -

Balance Sheet (mDKK)

Non-current assets 389.9 371.9 - - -

Total assets 514.7 507.1 - - -

Equity 125.1 91.2 - - -

Net interest-bearing debt 221.8 249.8 - - -

Net working capital (21.4) 21.4 - - -

Cash Flows (mDKK)

From operating activities (4.0) (19.1) - - -

From investing activities (14.4) (254.7) - - -

From financing activities (18.4) 345.5 - - -

Financial ratios (%)

Cash conversion (29.6) 29.8 - - -

Equity ratio 24.3 18.0 - - -

Ratios have been calculated according to the “Recommendations and Financial Ratios 2010” issued by the Danish Society of Financial

Analysts.

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PRACTICAL INFORMATION

FINANCIAL CALENDAR

13 August 2015 Interim Report for the period 1 January – 30 June 2015 12 November 2015 Interim Report for the period 1 January - 30 September 2015

DISCLAIMER

This announcement contains “forward-looking statements”. Undue reliance should not be placed on forward-looking statements because they relate to and depend on circumstances that may or may not occur in the future and actual results may differ materially from those in forward-looking statements. Forward-looking statements include, without limitation, statements regarding our business, financial circumstances, strategy, results of operations, financing and other plans, objectives, assumptions, expectations, prospects, beliefs and other future events and prospects. We undertake no liability, and do not intend to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.

Documents

Market decline and capital injection - Mobylifemobylife.com/images/Interim_report_for_1_January_-_30...Mobylife Holding A/S, Sydmarken 32F, DK-2860 Søborg, CVR NO. 35254552 PAGE 1