telegate Group We make our customer visible on the Internet Munich, May 7 th 2015

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telegate Group

We make our customer

visible on the Internet

Munich,

May 7

th

₂₀₁₅

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2 Analyst presentation 1st_{quarter results 2015}

Market & Strategy

Financials

Outlook

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Our new market

positioning

…

… fulfills the expectations of our customers

● Local clients: Small &

mid-sized businesses

● 0 - 20 employees

Smart and

easy

to understand

online marketing solutions

A clear

„We-Do-It-For-You“

commitment

Solutions with

easily visible

positive results

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German SME increase their online

advertising spending…

15 42 19 11 13 13 35 26 12 14 0 5 10 15 20 25 30 35 40 45 keine Ausgaben <100€ p.m. 100-250€ p.m. 200-500€pm >500€

SME allocation of

online advertising spending in %

2013 2014

Source: GFK SME Advertising spending 2014

… especially in telegate’s core segment

No information provided

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Through customer segmentation …

… we can professionally cover the market

5

Target Group Advertising

behaviour Ø online advertising Spending p.m. Offer Beginners in online advertising No experience with online marketing or want to test several providers

<100€ Easy online presence & low entry product

SMEs attracted to online advertising (Focus target group) First positive experience 100-500€ p.m. Professional online presence & performance products Professional Long-standing positive experience >500€ p.m. Performance product & VIP treatment

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… meets exactly customers’ expectation

• Website

• Listing

• Google My Business

• Facebook Page

• Video clip

• Google Business View

• Google Adwords

• Landingpage

• Top-Listing

• Facebook Advertising

Presence

Advertising

Our product portfolio …

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New: online presence for business owners on

the biggest social network Facebook

from April on

• professional presence on

Facebook for business

owners

• we established a

dedicated production team

in the past months

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New: Google My Business - professional

appearance on Google

Maps

✔

from April on

Google+

✔

Google Suche

✔

● Prominent entries

with all relevant

information on all

important

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New: Google Business View

from Q2 2015 on

●

360º tour of the business

●

Panorama made by our

certified photographers

●

Potential customers can visit businesses online before entering them in real life

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… visible on the internet

We make our customer …

Websites

#8,600

Facebook

Launch April

Listings

#19,000

Google

Business View

Launch April

Video

#6,500

Google

My Business

Launch April

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… to advertise their presence on the internet

We help our customers …

Google AdWords

10.5m € revenues (20% mobile)

Best reseller DACH

Facebook Advertising

Launch Autumn 2015

Top-Listings

320 m searches on own and

partner platforms (30% mobile)

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Market & Strategy

Financials

Outlook

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Cost optimisation program in 2014 leads to:

●

Stable gross profit margin in Q1/’15

●

Significant reduction of general admin cost

●

EBITDA incl. non-recurring items increased *all figures in m€ and including non-recurring items

Revenue & EBITDA* in line with guidance

13 TG Group Q1 2015 Q1 2014 % D Revenues 14,0 16,4 -15% -2,5 Revenues DA solutions 5,6 7,5 -25% Revenues Media 8,4 8,9 -6% Cost of revenues 7,1 8,5 -17% -1,5 Gross profit 6,9 7,9 -1,0 Gross profit in % _49,2% _48,0%

Selling and distribution costs 6,4 6,8 -6% -0,4

General administrative expenses 2,7 4,0 -32% -1,3

Other operating income/expense 0,0 -0,1 0,2

EBITDA w/o non-recurring effects 1,7 2,9 -44% -1,3

non-recurring effects 1,0 2,7 -1,7

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Q1.14

***

Q1.15

-1.5 -2.0

Q1.14

Q1.15

-2.5 -1.7

Operating Cash Flow

*,***

_(m€)

_{Net Cash Flow}

* ,**

_(m€)

** Net Cash Flow: Operating CF + investing CF (w/o available for sale financial assets) +/- interest income/expenses + valuation of financial assets

*** amount adjusted according to IAS 8

●

improvement in operating cash flow* due to less non-recuring items in Q1.15 ……

●

Despite of high efforts in product

development in 2015, positive trend of Net Cash flow

* adjusted by effects related to data cost claims

Cash position of 24.4 m€ available to strengthen our digital business

Cash Flow in line with guidance

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2014

2011

-4.1 m€

EBITDA*

-0.6 m€

Customer Retention

- Website Penetration

- Churn

12% 4% 1,023€ 5% 15% 43% 61% 67% 1,523 € 29% 41% 32%

2014

1.8 m€ 53% 72% 1,608€ 34 % 30 % 30 %

Digital business with steady improvements

- Customer > 3 years

Customer Acquisition

- Website Penetration

- 24-Months-Penetration

- ARPA

15 * EBITDA before non-recurring items, incl. platform cost and incl. website capitalisation

Q1/15

0.6 m€ 54% 76% 1,563€ 34 % 32 % 30 %

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16

● The Higher Regional Court in Dusseldorf rejected telegate’s

appeal of the damage claim against Deutsche Telekom.

● In the legal dispute, the value of the damage claim amounts to 86

million Euro which telegate AG asks for as the company had to

pay higher than necessary costs for the provision of subscriber

data to Deutsche Telekom and hence, had less money available

to push the company’s development.

● Appeal of this ruling has not been granted

Damage claim against Deutsche Telekom AG

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Market & Strategy

Financials

Outlook

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With the full rollout of our social media

products …

… we address a new market segment and win new customer

● Dedicated social media telesales team

supported with preselected prospect

data starts in May

● Selected prospect data will accelerate

sales

● Field sales and remaining telesales

bundle social media products to

complete existing customer offerings

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● Too many addresser logos and

brands confuse customers

● In contrast to telegate, klicktel is

known as a digital brand

● Topmost target is a customer-focused

external and internal repositioning

The brand relaunch positions klicktel …

… as the online marketing partner of choice for SMEs in Germany

19

klicktel

new logo to be revealed in July…

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Because good things must be

visible!

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klicktel’s revamped brand personality …

… reflects the shift within our product portfolio

21

Brand Core

Because great things deserve to be seen

Value Proposition

More visibility and time for the essentials

Selling Proposition / Claim

Easily found

Brand / Company Values

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Our new online ads planner ...

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Brand relaunch is part of our strategy …

Brand Relaunch New Vision / Mission New Sales Approach Digital Communi-cation Plan Customer Journey Improved Offer Customer Segmen-tation

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Profitability

EBITDA** of 2-3 m€ in 2015

Revenues

Digital

Double digit growth 2016 Yoy

*without data cost items **before non-recurring items

… to boost growth in Digital Business

Investments in Digital Business …

Investments

Digital

Net cash flow* 2015: -6 to -7 due to

investments & business transformation

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Spokesman of the Management Board

| Franz Peter Weber

Management Board | Michael Geiger

Investor Relations | Thomas Kley

telegate AG Fraunhoferstraße 12a 82152 Martinsried Germany Phone | +49 (0) 89-8954-1755 Fax | +49 (0) 89-8954-1020 Email | Investor.relations@telegate.com Homepage | www.telegate.com

May 7, 2015 | 3-months results 2015

June 24, 2015 | AGM 2015

August 6, 2015 | 6-months results 2015

November 12, 2015 | 9-months results 2015

Financial Calendar

telegate AG

Contacts and financial calendar

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This presentation contains “forward looking statements” regarding telegate Group (telegate), including opinions, estimates and projections regarding telegate’s financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of telegate to be materially different from future results, performance and achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct.

Whilst all reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions and expectations contained herein are fair and reasonable, no representation or warranty, express or implied, is made by telegate with respect to fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this presentation is subject to change without a prior notice, it may be incomplete or condensed, and it may not contain all material information concerning telegate. telegate undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise.

Disclaimer

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Backup

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ISIN DE0005118806

51m Euro Market capitalisation (December 31, 2014)

2.62 Euro 52W low

6.40 Euro 52W high

CDAX, Prime All Share, Technology All Share Indices

Prime Standard Transparency standard

29k Euro Average turnover per day (12-months)

19.111.091 Outstanding shares

0.00 Euro/share Dividend proposal 2014

Frankfurt and Xetra Official market

2 Liquidity class

Oddo Seydler Bank AG Market makers

Key data of the share

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ISIN DE0005118806

Shareholder Structure

29 54,60% 18,54% 15,95% 10,91% Freefloat:

SEAT Pagine Gialle

Golden Tree asset management Lux. S.à.r.l (incl.Steven A. Tananbaum):

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Q1.2015

7.5

1_{before non-recurring items}

Q1.2014

2.4 5.6 1.1

Revenues

EBITDA

1

DA business remains very profitable due to revenue & cost optimization

KPIs Directory Assistance Q1.`14 vs. Q1.`15

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8.4

0.6

Q1.2015

8.9

1_{before non-recurring items}

Q1.2014

0.6

Revenues

EBITDA

1

Digital business displays steady improvement in profitability

KPIs Digital Business Q1.`14 vs. Q1`15

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Consolidated P&L

32 k€ Q1 2015 Q1 2014 % Continuing operations Revenues 13.959 16.424 -15% Revenues DA solutions 5.585 7.484 -25% Revenues Media 8.375 8.940 -6% Cost of revenues -7.095 -8.487 -16% Gross profit 6.864 7.937 Gross profit in % 49,2% 48,3%

Selling and distribution costs -6.361 -6.850 -30%

General administrative expenses -2.723 -3.880 -30%

Other operating income 2 149

Other operating expense -6 0

EBITDA incl. non-recurring effects 648 203

non-recurring effects 1.012 2.743

EBITDA w/o non-recurring effects 1.660 2.946 -44%

Financial income 104 285

Income before tax -2.120 -2.359

Income tax 277 710

Income from continuing operations -1.843 -1.649

Discontinued operations

Income from discontinued operations -5 -44

Net Income -1.848 -1.693

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Consolidated balance sheet

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in kEUR _{March 31, 2015} _{March 31, 2014} _{Dec 31, 2014}

Assets

Cash and cash equivalents 3.726 7.933 4.262

Trade accounts receivable 11.217 12.903 11.915

Current tax assets 165 389 145

Available for sale financial assets 20.669 27.990 22.606

Other financial assets 220 24.660 413

Other current assets 1.919 2.714 1.697

Total current assets 37.916 76.589 41.038

Tangible and intangible assets 19.640 24.879 20.921

Other non-current assets 18 18 15

Total non-current assets 19.658 24.897 20.936

Total Assets 57.574 101.486 61.974

Liabilities & Shareholders' equity

Current liabilities 9.571 37.706 11.888

Non-current liabilities 2.238 3.896 2.506

Shareholders' equity 45.765 59.884 47.580

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Consolidated Cash Flow statement

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in kEUR _{3M 2015} _{3M 2014}

Income from continuing operations -2.120 -2.359 Income from discontinued operations -5 -44

Income before income tax -2.125 -2.403

Depreciation & amortisation 2.875 2.848 Changes in operating assets & liabilities -2.125 -1.439 Interest income / expense -123 -276 Income taxes paid -15 -1.127 Other items -8 417

Cash provided by (used in) operating activities -1.521 -1.980

Purchase of assets -1.096 -2.276 disposal of subsidiaries -13 -19 Purchase of other current financial assets 0 0 Disposal of available for sale financial assets -6.986 -6 Purchase of available for sale financial assets 8.950 2.000 Interest received 130 279

Cash provided by (used in) investing activities 985 -22

Interest paid -4 -15

Cash provided by (used in) financing activities -4 -15 Effect of exchange rate changes on cash and cash equivalents 4 0 Change in cash and cash equivalents -536 -2.017

Cash and cash equivalents at the beginning of reporting period 4.262 9.950

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