Three Months Report

EN
Trig Social Media AB (publ)
Corporate Identity Number: 556788-2807
Three Months Report
January 1 – March 31, 2015
First Quarter, January - March 2015
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Net sales amounted to 26 337 Euro
Operating loss amounted to -1 589 283 Euro
Losses after taxes amounted to -1 589 283 Euro
Losses per share amounted to -0,004 Euro
Cash flow for the period amounted to -147 054 Euro
First Quarter, January - March 2014
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Net sales amounted to 46 481 Euro
Operating loss amounted to -216 932 Euro
Losses after taxes amounted to -217 468 Euro
Loss per share amounted to -0,002 Euro
Cash flow for the period amounted to 65 000 Euro
Comments by Mr. Phillip Cook, Managing Director
Dear Reader,
As the company published its’ audited annual report just a few days ago, very few if any, events have
materialized in the time leading up to this report. I would however like to put additional emphasis on the fact
that Trig having gone through a trying period now feels confident of its capabilities in terms of further
expanding the distribution of its Trig Money product.
The management has chosen to apply very conservative views, such as writing down software development
costs entirely during the quarter, to the group’s numbers in this report, just as in the audited annual report for
2014, and in doing so ensuring that there is very little room for deviating results in the coming quarters.
Investments
Nor the company or any of its subsidiaries has entered into any new major investments during the period.
Organization
As previously announced the company has initiated a process of moving parts of its operations into its
Spanish subsidiary to achieve a closer relation to the market where Trig is making the most progress. The
Nacka office will function as a hub for management and from which administration of the group will be
handled. This involves a program to reduce the number of employees in Sweden which has been initiated
and negotiations are currently pending with the involved unions and other affected parties.
On the other hand has the development in Spain made further progress and the opening of the office in
Madrid has given Trig a stronger presence on the Spanish market. The number of employees and
consultants engaged in Spain have increased during the period and currently there are approx. 20 people
engaged in Spain.
The reorganization of the business involves also a cost reducing program which is continuing and the
savings will become clearer in the second half of the year.
2
Future Plans
As we are entering the summer months, Trig is racing to launch a number of marketing activities to gain
momentum. We are focusing heavily on distributed partnerships as well as whitelabel licensing in order to
further expand our reach, alongside existing content products.
Operations
Operations according to the strategy have started on all projects, although the work has reached different
levels. In the recently released audited annual report a comprehensive description of the Groups different
services has been provided.
Group sales amounts to 26 337 (46 481) Euro and the net result is -1 589 283 (-217 468) Euro. Cash assets
as of 31 March 2015 amounts to 40 691 (65 000) Euro.
The equity ratio is 6 % (82%).
For the day to day operations the company is dependent on loans from the parent company, Trig Media
Group AB and third parties in order to secure going concern principles. This situation is expected to continue
until the next coming months.
Financial Position - Parent Company
Sales in the parent company amounts to 1 509 Euro and net result for the period is -253 820 Euro.
Significant Risks and Uncertainty Factors
Through its business operations, Trig is exposed to various risks, both financial and operational. Operational
risks relate to Trigs' day-to-day business and the financials risks relate to the capital requirements of Trig's
different operations.
Operational and Development Risks
For a developer of IT related services in the field of Social media and income generating applications like
Trig Money there is always a risk that the services are not generating the expected market penetration and
that the implementation phase is being delayed or even stopped due to technical aspects. Trig always tries
to achieve risk-limitation during the process. The strategy of Trig is to adopt a selective approach to
tendering in order to reduce the risk to engage in unprofitable projects or projects that may not become a
success. When selecting suitable projects to involve itself in, Trig prefers projects whose risks, if possible,
are able to be identified and thus manageable and calculable.
To reduce these risks and subsequently costs, Trig is trying to developing applications primarily in large
growth user services. Trig has consciously decided to refrain from excessively niche-oriented projects
intended for narrow target groups.
Financial Risks
Through its business operations Trig is exposed to financial risks. The principal risks are interest-rate,
currency risks and financing risk. The company is, as stated in its recently released annual report, in
discussions with its banks in order to enter into various loan agreements as well as part in an ongoing
financing scheme involving private investors.
3
Interest-rate Risk
There is currently no interest-rate risk since the company does not have any loans or debt where changes in
interest rates will affect net interest items and cash flow.
Currency Risks
The currency risk is the risk that changes in exchange rates will affect the consolidated income statement,
balance sheet and cash flow statement. The functional currency of the Trig group is euro while the operating
currency in projects in Poland is both Swedish kronor and Euros.
Financing Risk
The financing risk is the risk that the Trig Group will not be able to raise enough funds to finance its
operations and the development of launched projects and finalization of future services under development.
Legal Risk
During the period the German Financial Supervisory authorities, BaFin, has announced it is investigating a
suspicion of so called “cold calls” and possible market manipulation. The company has engaged German
legal expertise to deal and co-operate with BaFin. Trig is of the opinion that no errors or wrongdoings have
been committed and that the company runs no legal exposure in relation to this.
The Swedish operating entity, Trig Entertainment AB, has recently been summoned to court by a former
employee for not respecting the Swedish labor law rules for priority order when laying people off. Trig is of
the opinion that the claim, which is unsubstantial in relation to trigs operation, is wrongful.
Trig Social Media AB has, as stated in the annual report, been summoned to court by a company that has
asked the court to put Trig Social Media AB into bankruptcy. Trig has rejected the claim since it lacks all
basis and legal grounds. It is the management’s absolute opinion that there is no legal risk connected to the
matter.
4
CONSOLIDATED INCOME STATEMENT
Amounts in Euro
Q1
Q1
JAN-MAR
JAN-MAR
JUL 2013DEC
2 015
2 014
2 014
Net sales
Net sales
Other income
Gross operating income
Other external costs
Personnel costs
Depreciation of tangible and intangible assets
26 337
46 481
412 970
1 357
0
0
27 695
46 481
412 970
-1 090 078
-149 201
-2 832 613
-469 858
-104 247
-878 243
-47 038
-9 965
-368 101
Operating income
-1 579 278
-216 932
-3 665 987
Financial items, net
-10 005
-536
-51 137
0
0
-7 356 076
-1 589 283
-217 468
-11 073 200
0
0
0
-1 589 283
-217 468
-11 073 200
Asset write-down
Income after financial items
Tax
Income for the period
Exchange differences on translation of foreign operations
Other comprehensive income
0
0
386 325
Total comprehensive income
-1 589 283
-217 468
-10 686 875
-1 589 283
-217 468
-11 073 200
0
0
386 325
363 749 998
108 334 000
193 120 907
-0,004
-0,002
-0,057
Attributable to the equity holders of the parent company
-Income for the period
-Other comprehensive income
Average number of shares, before and after dilution
Earnings per share
CONSOLIDATED BALANCE SHEET
Amounts in Euro
2015-03-31 2014-03-31 2014-12-31
Intangible assets
1 127 985
3 941 818
1 063 878
Tangible assets
37 659
0
37 659
Financial assets
0
0
0
1 165 645
3 941 818
1 101 537
889 140
441 515
889 982
3 146
0
2 303
Total fixed assets
Short term receivables
Tax receivables
Cash and bank balances
Total current assets
TOTAL ASSETS
40 691
65 000
55 231
932 977
506 515
947 516
2 098 623
4 448 333
2 049 054
Equity
Share capital
72 950
65 000
72 950
9 140 240
6 798 509
9 100 979
Retained earnings and other reserves
-7 496 385
-3 213 093
Profit/loss for the period
-1 589 283
0
1 850 678
-10 686
875
127 522
3 650 416
337 732
0
0
0
1 794 832
730 807
1 809 371
176 269
67 110
176 269
Total current liabilities
1 971 101
797 917
1 985 640
TOTAL EQUITY AND LIABILITIES
2 098 623
4 448 333
2 323 372
Additional paid in capital
Total equity
Long term liabilities
Current liabilities
Accrued expenses and deferred income
Change in Consolidated Equity
Amounts in Euro
Opening balance
Total comprehensive income for
the period
Total transactions with equity
holders
Closing balance
2015-03-31
2014-03-31
2014-12-31
79 532
31 655
31 655
-1 589 283
-217 468
-10 686
765
1 637 273
3 836 229
10 734 642
127 522
3 650 416
79 532
CONSOLIDATED CASH FLOW STATEMENT
Amounts in Euro
Operating profit/loss
Adjustment for non-cash items
Q1
Q1
JAN-MAR
JAN-MAR
JUL 2013DEC
2 015
2 014
2 014
-1 579 278
-216 932 -3 665 987
47 038
9 965
368 101
-10 005
-536
-55 631
Interest income
0
0
4 494
Income tax paid
0
0
0
Interest paid
Cash flow from operating activities before working
capital changes
-1 542 246
-207 503 -3 349 024
Changes in receivables
130 463
-420 936
-625 347
Changes in liabilities
227 816
245 800
1 671 442
Cash flow after working capital changes
Acquisition intangible assets
Acquisition tangible assets
Acquisition subsidiaries
-1 183 967
-382 639 -2 302 928
0
-6 404 870 -3 994 225
-4 120
-2 648 949
-38 704
0
0 -2 648 949
Cash flow from investment activities
-4 120
-6 404 870 -6 681 878
Shareholders contributions
39 261
6 798 509
6 870 603
0
54 000
1 664 978
992 236
0
573 360
1 031 497
6 852 509
9 108 941
-156 590
65 000
124 135
109 242
0
0
Translation differences
88 039
0
-14 893
Cash at the end of the year
40 691
65 000
109 242
New share issue
Equity instruments at fair value
Cash flow from financing activities
Cash flow of the year
Cash at the beginning of the year
CONSOLIDATED KEY FIGURES
Q1
Q1
(18 months)
2015, JanMar
2014, JanMar
2013-07-01 2014-12-31
(4 months)
2013-09-01 2013-12-31
(TE)
(12 months)
2012-09-01 2013-08-31
(TE)
(12 months)
2011-09-01 2012-08-31
(TE)
0
Amounts in Euro
Net sales
26 337
46 481
412 970
18 054
0
Operating profit/loss
-1 579 278
-216 932
-3 665 987
-213 602
-163 793
0
Operational margin
Neg.
Neg.
Neg.
Neg.
Neg.
Neg.
Balance total
2 098 623
4 448 334
2 308 831
572 850
389 768
237 227
Solidity
6%
82%
3%
5%
8%
100%
Investment non current assets
4 120
6 404 870
4 032 929
0
0
237 227
Number of shares at the end of the period
363 749 998
325 000 000
363 749 998
275 000
275 000
275 000
Earnings per share
-0,004
-0,002
-0,057
-0,777
-0,596
0,000
Dividends per share
N/A
N/A
N/A
N/A
N/A
N/A
Number of Employees
33
11
36
4
0
0
Accounting Principles, Group
This report has been compiled in accordance with IAS 34, Financial Reporting. The report is
compiled in accordance with International Financial Reporting Standards (IFRS) and with
International Financial Reporting Interpretations Committee (IFRIC), the interpretations of
financial standards approved by EU, as well as the Swedish Accounting Standards Council’s RFR
1 recommendation, Reporting for Groups, and accompanying references to Chapter 9 of the
Annual Accounts Act.
The report has been prepared in accordance with the same accounting principles and methods of
calculations as the 2014 Annual Report.
Note 1 Segment Reporting
Trig is conducting its operations in one business segment and one geographical area. The
business segment is social media services and related income generating activities. The
geographical area is global. Trig will start segment reporting when income generated from the
Trig Money operations have become more substantial.
Note 2 Long-term Liabilities
The group does not have any long-term liabilities.
Note 3 Cash Flow Statement
Payment of debts has been financed by new borrowings and investments.
The board and the Managing Director ensures that the Group accounts have been drawn
up in accordance w i t h IFRS international accounting standards as adopted by the EU
and give a fair picture of the Group’s position and profit/loss. The report has been drawn up
in accordance with good accounting practice and gives a fair picture of the parent
company’s position and profit/loss.
The company’s auditor has not audited this report.
Nacka, Sweden, 2
nd
of June 2015
The Board of Directors of Trig Social Media AB (publ)
Phillip Cook
Managing director
Juan Carlos Castro
Anthony Norman
Chairman of the board
Ruben Amaryan
Peter Kristoffersson
Contact'
'
Trig'Social'Media'AB'(publ)'
'
Visiting'address'Vikdalsgränd 10 B
Post address: P O Box 1268, 131 28 Nacka Strand,'Sweden
'
Phone: +46 406 06 02 84
E-mail: [email protected]
Web:'www.trig.com
Investor'Relations'
'
GFEI AG: Mr Lars Kuhnke
Address: Office Center Plaza, Mailänder Straße 2, 30539 Hannover, Germany
Phone: +49 511 474 023 10
E-mail: [email protected]
Web: www.gfei.de
Postal address: P O Box 1268, S- 131 28, Nacka Strand, Sweden
Visiting address: Vikdalsgränd 10B, Nacka Strand, Sweden
Phone: +46 (0) 40-60 60 284
Fax: +46 (0) 40-69 29 252
E-mail: [email protected]
www.trig.com

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