New Business Update - Ayima Group AB

Further to the previous update of Feb 11, 2022, Ayima is pleased to announce some significant new business wins and an update on the general business situation

After a difficult period in March and April, the new business situation has returned to normal in May. Since the begining of the month, Ayima has signed agreements with 9 new clients for an approximate total of 5.75 MSEK annually. While this welcome development will not have much impact on the 2nd quarter results, it bodes well for a return to growth and profitability in Q3.

Operationally, Ayima is performing well and all offices are well-staffed and productive. While we are used to seeing some short term volatility in our client's response to world events, Ayima's services are designed to be long-term and stable. Approx 70% of revenues are monthly retainers on long-term fixed contracts with equal monthly billings. The volatility usually occurs in Paid Media services, where budgets can be adjusted in real-time according to market developments.

The new business process is also affected by macro events - as most of our clients are larger, blue-chip companies, procurement decisions are usually made centrally and it is common to pause all new contracts when global economic uncertainties arise. Unfortunately this is unavoidable but the impacts will be reduced with increased size and so growth remains Ayima's primary goal at the present time.