DGAP-News

net mobile AG reports significant losses in the financial year 2013 - Seite 2

The financial results weakened compared to the previous year by EUR 1,392
thousand to EUR 2,239 thousand. This is mainly due to the increase in
exceptional depreciation on the book value of an at-equity-investment and
other long-term financial assets.

In order to keep up with new market conditions, net mobile AG has continued
to invest in its existing systems despite the difficult financial
situation. Investments - not counting investments in financial assets -
rose to EUR 17,723 thousand (previous year EUR 19,985 thousand). The
research and development activities of the net mobile Group remain at a
very high level. The cost of proprietary software development work amounted
to EUR 5.580 thousand (previous year: EUR 6,584 thousand) in the year 2013.
Due to this special business model of in-house software development the net
mobile Group achieved the highest added-value for the company and its
shareholders.

Following a decision of 30 November 2012, the Executive Board, with
approval of the Supervisory Board, resolved to make use of an authorisation
to increase the subscribed capital of the company by EUR 218,229.00 by the
issue of 218,229 bearer shares to EUR 12,448,207.00. Other corresponding
financial liabilities do not exist any more.

The net mobile Group ended the 2013 financial year with a positive
operating cash flow of EUR 89,981 thousand (previous year EUR 4,983
thousand). The investment cash flow, at EUR 33,817 thousand, (previous year
EUR 20,924 thousand) is negative, whereas the cash flow from financing
activities at EUR 43​,537 thousand, (previous year EUR 21,600 thousand) is
positive. All in all cash and cash equivalents of the Group increased by
EUR 99,751 thousand to EUR 130,579 thousand compared to the previous year
mainly due to an increase of the customer deposits to net-m privatbank 1891
AG. Other non-banking businesses of the net mobile Group recorded negative
cash flows, which was mainly covered by the strong financial support from
net-m's majority shareholder.

Personnel expenses have, as a result of restructuring in 2013, fallen by
EUR 313 thousand to EUR 18,617 thousand. Since these staff cuts were
carried out during the current financial year 2013, the actual impact of
this measure will only become apparent until the end of the 2014 financial
year.

The restructuring and realignment of the net mobile Group in 2013, as well
as the change of the new CEO on 20 March of this year, have resulted in the
first signs of positive momentum.