Jubii Europe NV : 6 months 2015/2016

Jubii Europe Half year Report 2015_ 2016 FINAL

Jubii Europe N.V.

Interim report

for the six months ended March 31, 2016

Key Figures (unaudited)

Six months ended March 31, 2016 (unaudited)	Six months ended March 31, 2015 (unaudited)
EBITDA1	in KEUR	(680)	362
EBIT1	in KEUR	(680)	362
Net profit/(loss)	in KEUR	(663)	397
Shares (total outstanding)2	number	312,300,000	312,300,000
Earnings per share (diluted and undiluted)	in EUR	0.00	0.00

Six months ended March 31, 2016 (unaudited)	Year ended September 30, 2015 (audited)
Cash and Cash equivalents and Other investments	in mln EUR	14.8	16.4
Cash ratio (Cash and Cash equivalents and Other investments/total liabilities)	number	38.7	13.3
Shareholders' equity	in mln EUR	15.0	15.7
Equity ratio (Shareholders' equity/total assets)	in percent	97.5	92.7
Total assets	in mln EUR	15.4	16.9
Employees3	number	1,3	1,3

1 EBITDA is Earnings Before Interest, Taxes, Depreciation, Amortization and Impairment, EBIT is Earnings Before Interest and Taxes.

2 Including Treasury shares.

3 Employee figures are presented on full time equivalent basis.

Table of contents Report to the shareholders 4

1. Message from the CEO 4

2. Economic Development 5

3. Share Information 6

   Capital Stock 6

   Shareholder Structure 6

4. Employees 6

5. Risks and Uncertainties 6

6. Outlook 7

Unaudited Condensed Consolidated Interim Financial Statements 9

Jubii Europe N.V. Unaudited Condensed Consolidated Interim Statements of Financial Position 10

Jubii Europe N.V. Unaudited Condensed Consolidated Interim Statements of Comprehensive Income 11

Jubii Europe N.V. Unaudited Condensed Consolidated Interim Statements of Cash Flows 12

JUBII Europe N.V. Unaudited Condensed Consolidated Interim Statements of Shareholders' Equity 13

Notes to the Unaudited Condensed Consolidated Interim Financial Statements 14

Quarterly Financial Information 18 Report to the shareholders

This report to the shareholders should be read in conjunction with the (consolidated) financial statements and notes thereto. This report contains certain forward-looking statements and information relating to Jubii Europe based on the beliefs of Jubii Europe as well as assumptions made by and information currently available to Jubii Europe. When used in this document, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" and similar expressions, as they relate to Jubii Europe or its management, are intended to identify forward-looking statements. These statements, which reflect Jubii Europe's current views with respect to future events, are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Further, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Investors are cautioned that forward-looking statements contained in this section involve both risk and uncertainty. Several important factors cause actual results to differ materially from those anticipated by these statements.

The Annual General Meeting of Shareholders of Jubii Europe NV (ISIN NL0000233195) in 2014 amended the Company's Articles of Association to extend the financial year to the twenty-one months ended September 30, 2015; the financial year 2015/2016 thus runs from October 01, 2015 to September 30, 2016. Therefore the half-year 1 October 2015 up to 31 March 2016 relates to the first half of the financial year ended 30 September 2016.

1. Message from the CEO

   Dear Shareholders,

   In the first six months of the financial year 2015/2016 Jubii Europe N.V. continued to move forward with the winding up of the remaining companies which are Jubii Europe N.V., the German subsidiary Jubii Europe GmbH and the Swedish subsidiary Yarps Network Services AB.

   For those two remaining subsidiaries, Yarps Network Services AB and Jubii Europe GmbH, a formal application for liquidation has been filed.

   The liquidation of Yarps Network Services AB cannot be finalized until the legal dispute with TeliaSonera is concluded. In the first instance the Stockholm District Court found TeliaSonera AB guilty of abuse of its dominant position and ordered TeliaSonera to pay to Yarps Network Services AB damages of SEK 65 million plus interest until payment is made. The amount of damages and the amount of interest roughly and preliminary calculated as per day of judgement, March 7, 2016, (approximately SEK 62 million) therefore in total amounted to approximately SEK 127 million which on the basis of the exchange rate was at that time approximately EUR 13,6 million. The court further decided that both parties have to bear their own costs. However, the judgement of the first instance did not become final and binding, because TeliaSonera filed an appeal against this judgment. Therefore, Jubii's subsidiary also filed an appeal on March 29, 2016, to further pursue its claim against TeliaSonera.

   Jubii Europe N.V. will immediately be liquidated after these two remaining subsidiaries are closed down.

   In the six month the Company realized a net loss of KEUR 663 which is mainly attributable to the legal dispute with TeliaSonera.

   Dr. Fred Wilsdorf Chief Executive Officer

2. Economic Development Result analysis

   EBITDA

   During the first six months of the financial year 2015/2016, the EBITDA amounted to kEUR (680) compared to kEUR 362 in the same period of the financial year 2014/2015.

   In these six months general and administration expenses amounted to kEUR (1,341) compared to kEUR (590) for the same period in 2014/2015; other operating income amounted to kEUR 661 compared to kEUR 952 in the same period in 2014/2015. The Ordinary expenses for the winding up amounted to kEUR (311) compared to kEUR (279) for the same period in 2014/2015. The legal and consulting fees for the lawsuit against TeliaSonera amounted to kEUR (1,026) compared to kEUR

   (313) for the same period in 2014/2015. During the six months of the financial year 2015/2016 the net finance income amounted to kEUR 17 compared to kEUR 35 for the same period in 2014/2015.

   This resulted in a net loss before tax of kEUR 663 for the first six months of the financial year 2015/2016, compared to a net gain before tax of kEUR 397 for the same period in the 2014/2015.

   The earnings per share for the first half of the financial year 2015/216 was EUR 0.00 compared to EUR 0.00 in 2014/2015.

   Balance Sheet Analysis

   Total assets decreased from EUR 16.9 million as of September 30, 2015 to EUR 15.4 million as of March 31, 2016. Cash, cash equivalents and other investments decreased to EUR 14.8 million as of March 31, 2016 compared to EUR 16.4 million as of September 30, 2015. This decrease reflects mainly the cash used in operating activities, especially the payments for legal and consulting fees of the lawsuit against TeliaSonera. Total liabilities as of March 31, 2016 decreased to EUR 0.4 million compared to EUR 1.2 million as of September 30, 2015.

   The above yields a cash ratio of 38,7 (cash, cash equivalents and other investments divided by total liabilities).

   Cash Flow Analysis

   The consolidated cash flow statements comprise of movements in cash and cash equivalents with an original maturity below three months. Other investments are classified as short term (original maturity 3-12 months) in the balance sheet.

3. Share Information

   In the first six months of the financial year 2015/2016 the Jubii Europe Share price varied frequently. The top share price of EUR 0.078 was reached on March 7, 2016. The lowest quotation of EUR 0.050 was reached on several days in the period under review.

   Capital Stock

   The company's capital stock consists of AA, AB and B shares, each with a par value of EUR 0.01. The average and absolute number of issued and outstanding shares, including 723,656 treasury shares with a nominal value of EUR 7,236.56 totalled 312,300,000. The number of voting shares outstanding therefore amounts to 311,576,344 as of June 30, 2015. The treasury shares were the result of both issuance and acquisition in the context of an indemnification from Spray Ventures in 2002.

   Shareholder Structure

   Number of shares as of March 31, 2016	% of voting rights	% of shares	Number of shares as of September 30, 2015	% of voting rights	% of shares
   Telefónica SA				100,000,000	32.1%	32.0%	100,000,000	32.1%	32.0%
   Reinhard Mohn GmbH / G+J Digital Products GmbH/ Jahr VVG mbH& Co. KG				62,270,000	20.0%	19.9%	62,270,000	20.0%	19.9%
   Christoph GmbH	Mohn	Internet	Holding	37,730,000	12.1%	12.1%	37,730,000	12.1%	12.1%
   JUBII Europe N.V. (treasury shares)				723,656	0.0%	0.2%	723,656	0.0%	0.2%
   Free float				111,576,344	35.8%	35.8%	111,576,344	35.8%	35.8%
   Total				312,300,000	100.0%	100.0%	312,300,000	100.0%	100.0%

4. Employees

   During the six months period under review, the number of full time equivalents employees was 1.3 (1.3 employees as of September 30, 2015).

   The remaining employees are ensuring the proper liquidation process of Jubii Europe.

5. Risks and Uncertainties

   Certain risk categories and risk factors which could have a material adverse effect on our financial position and results have been extensively described in the annual report 2014/2015. Please also refer to this report. Those risk categories and risk factors are deemed incorporated and repeated in this report by reference.

   With regards to litigation, in particular the proceedings against TeliaSonera there can be no assurance that Jubii's subsidiary, Yarps, would prevail in the second instance at the Appeals Court and maintain a money verdict in its favour. Also, if Yarps lost the appeal against TeliaSonera, this could lead to additional costs impacting the financial situation of the Company.

   Additional risks are not known to us, or currently believed not to be material, could later turn out

   to have a material impact on our business objectives, income, assets, liquidity or capital resources.

6. Outlook

Jubii Europe will continue the liquidation process; however, a detailed time schedule for the completion of this process cannot be provided at present. This is mainly due to the proceedings against TeliaSonera AB. On March 24, 2016, TeliaSonera AB and on March 29, 2016, Yarps Network Services AB appealed against the judgement of the first instance. There can be no assurance that Jubii's subsidiary, Yarps Network Services AB, would prevail in the second instance at the Appeals Court and maintain a money verdict in its favour. Also, if Yarps lost the appeal against TeliaSonera, this could lead to additional costs impacting the financial situation of the Company.

Haarlem, the Netherlands May 27, 2016

The Management Board Jubii Europe N.V.

Responsibilities in respect of the financial statements and half-year report

The Management Board is responsible for preparing the financial statements and the half-year report in accordance with applicable Dutch law and the International Financial Reporting Standards (IFRS) as adopted by the European Union (EU).

The Management Board is required to prepare financial statements for each financial year as well as interim reports, which give a true and fair view of the state of affairs, of the profit or loss and of the respective companies included in the consolidation. It is further responsible for maintaining proper accounting records, for safeguarding assets, and for taking reasonable steps to prevent and detect fraud and other irregularities. The Management Board is also responsible for selecting suitable accounting policies and applying them on a consistent basis, making judgments and estimates that are prudent and reasonable. Applicable accounting standards have been followed and Jubii Europe N.V.'s financial statements are prepared using accounting policies which comply with IFRS.

As required by section 5:25c(2)(c) of the Dutch Financial Supervision Act (Wet op het Financieel Toezicht) and on the basis of the foregoing the Management Board has confirmed that to its knowledge:

• the financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of Jubii Europe N.V. and the undertakings included in the consolidation taken as a whole.

• the half-year report of the Management Board includes a true and fair view of the main events in the first half of the financial year and how these affect the half-year financials, as well as a description of the most important risks and uncertainties that Jubii Europe N.V. faces for the next six months and, if applicable, a description of the most important related party transactions.

Management Board Dr. Fred Wilsdorf, CEO Jubii Europe N.V.

Unaudited Condensed Consolidated Interim Financial Statements for the period ended March 31, 2016 Jubii Europe N.V. Unaudited Condensed Consolidated Interim Statements of Financial Position

In thousand Euro	Notes	March 31, 2016	September 30, 2015
ASSETS
Cash and cash equivalents*	2	494	2,132
Other investments*	2	14,300	14,300
Accounts receivable and other receivables	42	42
Prepaid expenses and other current assets	534	415
Total current assets	15,370	16,889
Total assets	15,370	16,889
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital	3,123	3,123
Share premium	1,482,092	1,482,092
Treasury shares	(2,052)	(2,052)
Translation reserve	13	10
Accumulated deficit	(1,467,525)	(1,466,010)
Unappropriated result	(663)	(1,512)
Total shareholders' equity attributable to owners of the Company	14,998	15,651
Accounts payable	234	404
Provision	3	0	634
Other short-term liabilities	148	200
Total current liabilities	382	1,238
Total liabilities	382	1,238
Total shareholders' equity and liabilities	15,370	16,889

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements

Jubii Europe N.V. Unaudited Condensed Consolidated Interim Statements of Comprehensive Income

In thousand Euro (except share data)	Not es	Six months ended March 31, 2016	Six months ended March 31, 2015
Gross profit/(loss)	0	0
General and administration	6	(1,341)	(590)
Other operating income/(expenses)	661	952
Total operating income/(expenses)	(680)	362
Profit/(loss) from operations	(680)	362
Finance income	17	35
Net finance income	17	35
Profit/(loss) before tax	(663)	397
Income tax benefit	0	0
Net profit/(loss) for the period attributable to owners of the Company	(663)	397
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Foreign currency translation differences from foreign operations	(0)	0
Other comprehensive income for the period, net of income tax	(0)	0
Total comprehensive income/(loss) for the period attributable to owners of the company	(663)	397
Basic/diluted profit/(loss) per share (Euro) - continued operation	0.00	0.00
Basic/diluted profit per share (Euro)	0.00	0.00
Weighted average number of shares outstanding	311,576,344	311,576,344

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements

Jubii Europe N.V. Unaudited Condensed Consolidated Interim Statements of Cash Flows

In thousand Euro	Note s	Six months ended March 31, 2016	Six months ended March 31,2015	Twenty one months ended September 30, 2015
Cash flows from operating activities
Profit/(loss) before tax	(663)	397	(1,512)
Adjustments for:
Net finance income and expense	(17)	(49)	(124)
Change in accounts receivable	0	0	39
Change in prepaid expenses and other current assets	(119)	(8)	(127)
Change in prepaid expenses and other non-current assets	0	0	(2,324)
Change in other investments	0	980	0
Change in accounts payable	(170)	(65)	0
Change in current liabilities	(686)	(892)	(1,125)
Interest received	17	49	124
Net cash used in operating activities	1,638	412	(5,049)
Cash flows from financing activities
Share Premium repayment	0	0	0
Net cash provided / (used) in financing activities	0	0	0
Effect of exchange rate changes on cash and cash equivalents	0	(12)	(8)
Change in cash and cash equivalents	(1,638)	400	(5,057)
Cash and cash equivalents, beginning of the period	2,132	734	7,189
Cash and cash equivalents, end of the period	494	1,134	2,132

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements