SYZYGY : 9-Month Report 2023

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9-Month Report 09 30 2023 Interim Report Contents 3 Key financial figures as per 09/30/2023 5 Business development and Group Management Report Financial figures 12 Consolidated balance sheet 13 Consolidated statement of comprehensive income 14 Statement of changes in equity 15 Consolidated statement of cash flows 16 Selected explanatory notes 21 Financial calendar 2023 / contact diffferent Berlin Key financial figures Key financial figures as per 09/30/2023 2023 54,388 2022 52,712 2021 44,658 2020 40,685 2019 47,631 Development of sales (in kEUR) 7 % Poland 81 % 12 % United Kingdom Germany & US Sales by segments 2023 -748 4,752 2022 2021 4,616 2020 2,606 2019 4,163 Operating income (in kEUR) 2023 -1,954 2022 4,062 2021 4,051 2020 2,051 2019 4,042 Income before taxes (in kEUR) 2023 -0.20 2022 0.22 2021 0.23 2020 0.11 0.22 2019 Earnings per share undiluted (in EUR) 2023 -1,206 2022 -690 2021 -565 2020 -555 2019 -121 Financial income (in kEUR) 2023 -2,569 2022 3,039 2021 3,139 2020 1,458 2019 3,007 Net income (in kEUR) 2023 1,477 2022 3,689 2021 709 3,548 2020 2019 -6,284 Operating cash flow (in kEUR) Key financial figures 50.33 % 100 % Bank deposits and overnight A compelling digital experience makes all the difference, creating sustainable added value and boosting competitiveness. That is precisely what the SYZYGY GROUP's services focus on, enabling it to maintain its above-average growth rate in its German core market. 34.04 % 9.57 % 6.06 % WPP plc., St. Helier Private investors/others Institutional investors HANSAINVEST Shareholder structure deposits Portfolio structure of cash and marketable securities 46 % 54 % 76 % 24 % Equity Liabilities Non current assets Current assets Balance sheet structure 32% Services 21% Automotive 20 % Finance/insurances 16 % Consumer goods 5 % Telecommunication/IT 6 % Others Sales allocation by vertical markets 2023 110 2022 110 2021 109 2020 97 2019 105 Sales by employee annualised (in kEUR) 32 % 17 % 51 % Top 5 Top 6-10 Others Sales by clients' volume 19 % Technology 18 % Strategy/consulting 17 % Performance marketing 16 % Project management 16 % Design 14 % Administration Employees by function Group Management Report Business development and Group Management Report 3. Quarter January - September 2023 2022 Change 2023 2022 Change kEUR kEUR kEUR kEUR Sales 18,396 18,343 0% 54,388 52,712 3% Operating income (adjusted) 1,701 1,644 3% 3,931 4,752 -17% Operating margin (adjusted) 9.2% 9.0% 0.2 pp 7.2% 9.0% -1.8 pp Goodwill write-downs 0 0 n.a. -4,205 0 n.a. Restructuring and transformation costs -474 0 n.a. -474 0 n.a. EBIT 1,227 1,644 -25% -748 4,752 -116% EBIT Margin 6.7% 9.0% -2.3 pp -1.4% 9.0% -10.4 pp Financial income -287 -47 -511% -1,206 -690 -75% Net income before tax 940 1,597 -41% -1,954 4,062 -148% Net income 627 1,160 -46% -2,569 3,039 -185% Earnings per share (EUR) 0.04 0.08 -50% -0.20 0.22 -191% Liquid assets and marketable securities 2,163 3,338 -35% 2,163 3,338 -35% Operating cash flow 1,373 3,732 -63% 1,477 3,689 -60% Employees incl. freelancers 665 637 4% 665 637 4% 1. General The following Group Management Report provides information on the performance of the SYZYGY GROUP (hereinafter referred to as "SYZYGY", the "Group" or the "Company"). The consolidated financial statements on which the Group Management Report is based have been prepared in accordance with International Financial Reporting Standards (IFRS). The financial year corresponds to the calendar year. 2. Group profile For information on the SYZYGY GROUP's structure, strategy and management, please refer to the explanatory notes in the 2022 management report (2022 Annual Report, page 56 ff.). The Group consists of SYZYGY AG as the holding company and seven subsidiaries: Ars Thanea S.A. diffferent GmbH SYZYGY Deutschland GmbH SYZYGY Digital Marketing Inc. SYZYGY Performance Marketing GmbH SYZYGY UK Ltd. Unique Digital Marketing Ltd. Group Management Report 2.1. Employees The following table shows the distribution of permanent employees by region: Employees 09/30/2023 Technology 118 09/30/2022 112 The headcount at the SYZYGY GROUP increased in the period covered by the report. The SYZYGY GROUP had a total of 627 permanent employees as at September 30, 2023. This represents an increase of 23 employees compared with December 31, 2022, and a rise of 39 compared with September 30, 2022. The number of employees in the German companies rose by 57 people compared with the prior-year quarter, while there was a Employees 09/30/2023 Germany 499 Poland 72 United Kingdom 48 United States 8 Total 627 09/30/2022 442 83 55 8 588 Strategy/consulting 112 Performance marketing 108 Project management 103 Design 100 Administration 86 Total 627 111 104 96 90 75 588 decrease of 18 employees in the international companies. Germany 80 % Poland 11 % United Kingdom 8 % United States 1 % Employees by region The proportion of employees in each function/work area has not changed significantly and breaks down as follows: 19 % Technology 18 % Strategy/consulting 17 % Performance marketing 16 % Project management 16 % Design 14 % Administration Employees by function On average over the period, 619 employees plus around 43 freelancers worked for the SYZYGY GROUP. Annualised sales per head were therefore EUR 110,000 (previous year: EUR 110,000). 2.2. Net assets, financial position and results of operations of the SYZYGY GROUP 2.2.1. Results of operations Sales figures for the SYZYGY GROUP are arrived at by deducting media costs from billings. Media costs are incurred in the performance marketing companies as transitory items on the revenue and expenses side. SYZYGY GROUP sales increased by 3 per cent in the 2023 reporting period to reach EUR 54.4 million. The share of sales generated in Germany rose to 81 per cent, with sales growth of 6 per cent being recorded. The UK & US segment accounted for 12 per cent of sales, while the Poland segment contributed 7 per cent to total SYZYGY GROUP sales. Group Management Report Shifts in sales patterns gave rise to a number of changes compared to the previous year. Sales to clients in the services sector rose by 9 percentage points, while sales to companies in the automotive industry were down by 5 percentage points. There was a 1 percentage point decline in sales to telecom clients. Sales derived from companies that cannot be assigned to any of these five key areas were also down by 3 percentage points to 6 per cent. 32% Services 21% Automotive 20 % Finance/insurances 16 % Consumer goods 5 % Telecommunication/IT 6 % Others Sales allocation by vertical markets The Group generated 49 per cent of total sales with the ten largest clients. This corresponds to an increase of 4 percentage points compared with the same period in the previous year. 2.2.2. Operating expenses and depreciation The cost of sales increased ahead of sales by 7 per cent to reach EUR 41.9 million (previous year: EUR 39.2 million). Gross margin decreased by 3 percentage points to 23 per cent due to the cost of sales rising faster than sales. Sales and marketing costs and general administrative expenses fell by 4 and 2 per cent, respectively, to EUR 4.0 million (previous year: EUR 4.1 million) and EUR 6.6 million (previous year: EUR 6.8 million). Depreciation of fixed assets increased by EUR 4.3 million (EUR 8.3 million compared to EUR 4.0 million in the previous year) due to an impairment of goodwill in the amount of EUR 4.2 million. Excluding the impairment of goodwill, depreciation and amortisation of EUR 4.1 million was almost flat compared to the previous year's figure of EUR 4.0 million. 2.2.3. Operating income and EBIT margin The SYZYGY GROUP's operating profit after adjustment for goodwill write-downs and restructuring expenses fell to EUR 3.9 million compared with the prior-year period (previous year: EUR 4.8 million); the adjusted EBIT margin thus fell to 7.2 per cent (previous year: 9.0 per cent). In the first half of the year, impairment of goodwill amounting to EUR 4.2 million was recognised and restructuring expenses of EUR 0.5 million were incurred, resulting in negative EBIT (operating income) of EUR 0.7 million. 2023 -748 4,752 2022 2021 4,616 2020 2,606 2019 4,163 Operating income (in kEUR) Group Management Report 2.2.4. Financial income The SYZYGY GROUP reported negative financial income of EUR 1.2 million for the first nine months of 2023 (previous year: EUR 0.9 million). Financial expenses chiefly comprise borrowing costs, losses realised on the sale of securities, and pro rata interest expense from long-term contracts in accordance with IFRS 16 (primarily leases). 2023 -1,206 2022 -690 2021 -565 2020 -555 2019 -121 Financial income (in kEUR) 2.2.5. Income taxes, net income, earnings per share Business performance at the SYZYGY GROUP is reflected in pre-tax income of EUR -2.0 million. In the same period of the previous year, the figure was EUR 4.1 million, meaning that pre-tax income is down by EUR 6.0 million. After income taxes of EUR 0.6 million, net income was EUR -2.6 million. Undiluted earnings per share were EUR -0.20, based on the average available 13,500,000 shares qualifying for participation in the profits and after deducting minority shares of EUR 141,000. This figure is EUR 0.42 below the level achieved in the prior-year period. SYZYGY Performance Hamburg 2023 -1,954 2022 4,062 2021 4,051 2020 2,051 2019 4,042 Income before taxes (in kEUR) 2023 -2,569 2022 3,039 2021 3,139 2020 1,458 2019 3,007 Net income (in kEUR) 2023 -0.20 2022 0.22 2021 0.23 2020 0.11 2019 0.22 Earnings per share undiluted (in EUR) Group Management Report 2.2.6. Segment reporting In accordance with IFRS 8, which is based on the management approach, the SYZYGY GROUP is reporting segments differently from the previous year. The UK & US segment includes SYZYGY Digital Marketing in addition to the British companies, because it is managed from the UK. The original Other segment has been renamed Poland and comprises Ars Thanea. The Germany segment remains unchanged. In the first nine months of 2023, the individual segments contributed to earnings as follows, compared with the same period in the previous year: 7 % Poland 12 % United Kingdom & US Sales by segments 81 % Germany Germany 3. Quarter (in kEUR) 2023 2022 Sales (unconsolidated) 43,398 40,778 Operating income (adjusted) 3,807 4,494 Operating income (adjusted) in % 9% 11% EBIT -624 4,494 EBIT margin in % -1% 11% Share of Group sales 81% 80% (consolidated) in % United Kingdom & US 2023 2022 6,327 7,480 657 868 10% 12% 409 868 6% 12% 12% 12% Poland 2023 2022 4,718 4,718 800 828 17% 18% 800 828 17% 18% 7% 8% Group Management Report 2.2.7. Financial position The SYZYGY GROUP had liquidity reserves totalling EUR million as at the balance sheet date, corresponding to a decline of EUR 6.7 million compared with December 31, 2022. Liquid funds decreased by EUR 5.7 million to EUR million. The securities portfolio was liquidated, with no securities now being held. The change in liquid funds is largely due to the dividend paid to shareholders and the repayment of debt capital items. A total of 100 per cent of the funds was accounted for by bank deposits as at September 30, 2023. Cash flow from business operations was slightly positive in the period under review. This is largely due to depreciation and amortisation of EUR 8.3 million, while total net income (EUR -2.6 million) and payments of liabilities (EUR -3.1 million) adversely affected cash flow. Total cash flow of the SYZYGY GROUP was negative EUR 5.2 million as at the reporting date. 2023 1,477 2022 3,689 2021 709 3,548 2020 2019 -6,284 Operating cash flow (in kEUR) Negative cash flow from investment operations of EUR 0.3 million was recorded. Changes in non-current assets of EUR 0.5 million, interest payments for lease obligations according to IFRS 16 of EUR 0.4 million and investments in intangible assets and fixed assets of EUR 0.2 million adversely affected cash flow. The sale of securities was a positive factor, generating EUR 0.8 million. The main items in the cash flow from financing activities included payment of a dividend to SYZYGY AG shareholders amounting to EUR 3.0 million and the repayment of lease liabilities of EUR 2.8 million. Cash flow from financing activities thus amounted to EUR -6.4 million. 2.2.8. Asset situation Total assets of the SYZYGY GROUP decreased by EUR 11.8 million to EUR 87.4 million in the period under review compared to December 31, 2022, representing a fall of 12 per cent. Non-current assets declined by EUR 5.5 million to EUR 66.2 million compared to the balance sheet date of December 31, 2022 (EUR 71.6 million). The key factor in this respect was the EUR 3.9 million decline in goodwill and the decrease of EUR 1.9 million in fixed assets (due to depreciation). Ars Thanea Warsaw Current assets of EUR 21.2 million were below the level as at December 31, 2022 (EUR 27.6 million). This was primarily due to the fall in liquidity reserves, which were down EUR 6.8 million. In contrast, other current assets increased slightly to EUR 2.8 million (previous year EUR 2.5 million). At EUR 40.0 million, equity was down by EUR 5.1 million compared to December 31, 2022. In addition to total net income of EUR -2.6 million, the dividend distribution of EUR 3.0 million reduced retained earnings. This was partly offset by a positive change in other comprehensive income of EUR 0.6 million. The latter is due to currency translation adjustment from foreign business operations. The equity ratio increased by 1 percentage point to 46 per cent due to the relatively larger drop in total assets.

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