Investors

The CLIQ Digital Group (“CLIQ”) uses alternative performance measures, which are or may be non-GAAP measures, in its regular and mandatory financial reporting. These measures are not defined under IFRS.

CLIQ uses non-GAAP measures as key performance indicators for internal Group management.

For the purpose of evaluating the asset, financial and earnings position of CLIQ, these alternative performance measures should not be used in isolation or as an alternative to the financial measures presented in the consolidated financial state- ments and determined in accordance with IFRS.

The alternative performance measures used are listed and explained below.

The marketing spend reflects the costs of the period for acquiring new members.

The marketing spend for member acquisition that can be directly allocated to new subscribers to our subscription services is accounted for and capitalised in the balance sheet as contract costs. The contract costs are released to the income statement over the member’s revenue lifecycle with a maximum amortisation period of 18 months.

EBIT is earnings before interest and income taxes and includes depreciation, amortisation and impairment charges applied to intangible, tangible and current assets.

EBIT is calculated by adding income taxes expenses and financial expenses and deducting income tax income and financial income to the net result for the period.

EBITDA is earnings before interest, taxes, depreciation and amortisation.

EBITDA is calculated from EBIT plus depreciation and amortisation recognised in profit or loss and less reversals of impairment losses on intangible assets, property, plant and equipment and other fixed assets recognised in profit or loss.

The EBITDA margin is calculated from the EBITDA in relation to the gross revenue.

Financial measure that represents the net balance of incoming and outgoing payments during a reporting period.

Operating free cash flow is defined as the sum of net cash generated by operating and investing activities, i.e. before cash flow from financing activities.

Cash flow from investing activities is a financial measure that compares outgoing payments for the acquisition of fixed assets and incoming payments from the disposal of fixed assets.

Cash flow from financing activities is a financial measure that shows how investments were financed during the reporting period.

It is calculated from additions to equity plus proceeds from the exercise of stock options less dividends paid plus proceeds from debt increase, less repayments of loans, bonds or similar debt instruments. In addition, the cash flow from financing activities takes into account changes in minority interests.

The Profitability Index (previously CLIQ Factor) is the ratio of the expected net revenue per user in the next six months to the cost of member acquisition. Net revenue is defined as revenue less the cost of third parties. The Profitability Index is used as a key performance indicator for measuring the profitability of newly acquired members and in the decision-making process as to whether to invest in certain products or markets.

The CBV is calculated by multiplying the number of members by their individual remaining net lifetime value. It therefore represents the total net revenue (i.e. gross revenue less the cost of third parties) that is expected to be generated by existing members.

A paid member is defined as a user subscribed to CLIQ’s services as at period-end and who pays for access to one of our content portals.