New CRM and mailing COCKPIT modules ready in the second half of the year

MUNICH, GERMANY - EQS - 16 August2019 - EQS Group AG (ISIN: DE0005494165) continues itspositive corporate development in the first half of 2019. The Group generatedrevenues of EUR 18.70 million in the first six months of the financial year, anincrease of 9% over the same period the previous year. EBITDA increased to EUR 150,000.Consolidated net profit amounted to EUR -2.45 million. Earnings per share areEUR-1.64.

Thefollowing picture emerges for the second quarter: revenue amounts to EUR 10.17million (+9%), EBITDA increased by 134% to EUR 594,000, and consolidated netincome amounts to EUR -561,000. Earnings per share are EUR -0.39 in the periodfrom April to June (previous year: EUR 0.41).

Salesgrowth in the first half of the year was slightly lower than expected. This isa consequence of a weakening economy and a corresponding lack of IPOs, revenue shiftsin XML filings, and delays in the completion of single CRM- and mailingfunctions in the new COCKPIT. On the cost side, total expenses in the secondquarter decreased disproportionately to revenue, as planned, as a result of thechronological sequence of the investment program. This trend will continue inthe coming quarters.

SegmentDevelopment

In theCompliance segment, revenue increased by 15% to EUR 9.61 million (EUR 8.35million) in the first half of the year. The number of Large Cap customers rosethis quarter by 36 to 1,206, LEI customers increased by 513 to 34,093, and XMLsubmissions customers rose by 105 to 4,249 on an annualized basis. Revenues inthe Investor Relations segment increased to EUR 9.09 million, up 4% from the previousyear (EUR 8.78 million), while the number of customers increased by 20 for atotal of 2,103.

EQS Group AG is achieving the goal it set inSeptember 2017 to expand its core business around the adjacent CorporateCompliance segment and to exclusively develop cloud-based solutions. In doingso, the Group has launched an investment offensive to expand itself into atechnology company. This undertaking has led to a temporary burden on earnings.EQS successfully launched the first version of its new COCKPIT in the fourthquarter of 2018. Since then, 65 customers have shifted to the new COCKPIT.

AchimWeick, Founder and CEO of EQS Group AG: "We have made real strides in thefirst half of the year and are confident that revenue growth will accelerate aswe begin migrating the majority of our customers to the new COCKPIT fromSeptember on. This will lead to a sustainable expansion of subscriptionrevenues."

Annualrecurring revenues at the Group level are at 78% in the second quarter. For thelarge caps in Germany, that number remains nearly unchanged at 82%. Thesefigures are based on a customer basis of 1,202 Large Cap customers.

Updatedoutlook following sale of stake in ARIVA.DE AG

EQSGroup AG has sold its entire stake in ARIVA.DE AG effective July 1, 2019. Thedecision to do so was based on the Group's strategic focus on CorporateCompliance and Investor Relations. The deal closed in mid-July (deconsolidationas of July 1, 2019) and the Executive Board now plans a 4%-9% increase inrevenues from between EUR 37.5 million and EUR 39.5 million. Due to lower otheroperating expenses of approximately EUR 1.8 million as a result of the effectsof IFRS 16 (Amendment to IFRS accounting guidelines for leases), we expect anEBITDA of between EUR 2.8 million and EUR 3.8 million. Adjusted for the effectsof IFRS 16, EBITDA is still expected to be between EUR 1.0 million and EUR 2.0million. We expect a volume of EUR 4.0 million for the newly introduced New ARRkey figure, which reflects newly contracted annual recurring sales volume. Inaddition, the number of new customers (Large Caps) is to increase by 400.

The Executive Board will discuss the results in today'stelephone conference from 11.00 a.m. (CEST). This will be broadcast live onlineon www.eqs.com.

*Limited comparability due to new IFRS Accounting for Leases (IFRS 16)as of Jan. 1, 2019

More information:

The figures for HY1 2019 are unaudited.

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About EQS Group

EQS Group is a leading international providerof regulatory technology (RegTech) in the fields of corporate compliance andinvestor relations. In working with EQS Group, thousands of companies worldwideinspire trust by fulfilling complex national and international disclosureobligations, minimizing risks and communicating transparently withstakeholders.

EQS Group's products are pooled in thecloud-based software EQS COCKPIT. They ensure the professional control ofcompliance workflows in the fields of whistleblower protection and casemanagement, policy management, insider list management and disclosureobligations. In addition, listed companies benefit from a global newswire,investor targeting and contact management, IR websites, digital reports andwebcasts for efficient and secure investor communications.

EQS Group was founded in 2000 in Munich,Germany. Today the group employs over 350 professionals and has offices in theworld's key financial markets.