Epsilon Net: Drop in revenue and profits in 2021

Impressive increase in revenues and profits for 2021 announced Group Epsilon Net,who continued to consistently implement his investment plan, having, as he states in his relevant announcement as axes:

A) The achievement strong growth rates. In particular, in 2021 the Turnover increased by 133% and Net profit after taxes by 222%. This impressive performance in the financial figures of the Group, came both through the significant rate of organic growth (over 50%), and from the contribution of targeted acquisitions.

B) The significant increase of the active installed customer base with more than100,000 customers,to which it provides specialized solutions, suitably adapted to the size of each business and to the specific needs of each vertical market.

C) The expansion of the portfolio of solutions it offers with integrated systemsE–invoicing,Accounting,ERP,CRM,RETAIL,WMS,MOBILE,MIS,PAYROL,HRMS,PMSin combination with servicescertifiedElectronic invoicing provider andmyDATAproviding all in one solutions to end customers.

D) His even more active participation indigital transformation of the private sector in progress.The Group, which is the largest business software provider in the Greek market, further strengthens its leading position, with continuous development & evolution of innovative applications, technological solutions and specialized services, while along with targeted acquisitions accelerates its strategic goal for continuous expansion of its share. in the IT market while achieving high economic performance.

After the successful completion and operational integration of the strategic acquisitions of the companiesDATACOMMUNICATIONΑ.Ε.,SINGULARLOGICSAas well as its creationEpsilonSingularLogic,the Group, in the year ended, acquired a majority stake in the companiesTechnolife,iQomandPCSsignificantly expanding its overall customer base and portfolio of solutions in vertical markets. In January 2022, it also proceeded to acquire 100% of itCSA,specialized company with a leading position in the development of information systems for Pharmacies and Drugstores.

Basic Financial Figures

According to the Consolidated Financial Statements for the year 2021, prepared based on the International Financial Reporting Standards (IFRS), its main financial figuresGroupEpsilonNetare as follows:

Basic financial data for the period 1/1/2021 – 31/12/2021

It should be noted that the significant expansion of sizes, through the significant acquisitions of the previous periodis not reflected in its entiretyin the financial results of 2021, since the participation of Epsilon SingularLogic in the Group’s sizes concerns only 10 months of the year, Technolife 7 months (acquisition June 2021), iQom 4 months (acquisition September 2021), PCS 2 months (acquisition November 2021), while the recently acquired CSA Pharmakon does not participate at all in the results of 2021 (acquisition January 2022).

In more detail, oOperations’ Circle of Groupin 2021 amounted to € 50.51 million compared to € 21.70 million in 2020, recording an increase of 132.80%, Profits before taxes, interest and depreciation (EBITDA)of the Group amounted to € 15.09 million compared to € 5.23 million in 2020, recording an increase of 188.33%, whileProfits after taxesincreased by 221.86% amounting to € 10.78 million compared to € 3.35 million in 2020.

Regarding theParent Company,for 2021 oOperations’ Circleamounted to € 18.95 million compared to € 14.62 million in 2020, recording an increase of 29.67%, Profits before taxes, interest and depreciation(EBITDA)amounted to € 8.10 million compared to € 3.36 million in 2020, improved by 141.00%, while Profits after taxes increased by 192.76% amounting to € 5.64 million compared to € 1.93 million . € in 2020.

Summary of Financial Position

TheCash Availableof the Group in 2021 amounted to € 23.35 million, long-term borrowing amounts to € 8.91 million, short-term borrowing to € 6.80 million whilepositive net fund (NetCash) to € 5.48 milliondespite the implementation of the significant acquisitions of the previous year.

The Equityof the Group in 2021 amounted to41.45cm. €.

Key factors for the increase in size and the continuous expansion of the Group’s market share were:

• strategic investments in cutting-edge web and cloud systems technologies that ensure remote work,

• the dominant position of the company in the field of electronic invoicing and e-booksmyDATAof AADE as well

• and significant acquisitions that create large synergies and economies of scale.

The business model that the Group successfully follows, focuses on sectors with high growth prospects and high added value. Note in particular (something that is capturedconsistentlythroughout the Group’s course to date) that the development strategy is based on the business model of selling (to a large extent) standardized product as well asweb&cloudsolutions based on the modelSaaS. This strategy maximizes the benefits of increasing turnover, achieving continuous improvement of profit margin and net profitability.

Epsilon Net, consistent in its shareholder reward policy, will proceed this year as well.dividend distribution, the amount of which will arise based on the distributed profits and will be decided during the Ordinary General Meeting. of shareholders.

Goals and Prospects for 2022

The management estimates that the Group in 2022 will play a leading role indigital transformation of the private sectorof the Greek economy, the wide acceptance of all the products and services of the Group will be further expanded and the turnover will continue at a strong pace due toorganic development,but alsoyoung peopleacquisitions.

Thekey objectivesof business planning for 2022 include:

1. the continuation of the excellent course of the seriesWebapplications“EpsilonSMART “forelectronic invoicingand the adaptation of micro-enterprises & freelancers to myDATA

2. the utilization of the enhanced know-how of the Group in the business software formedium & large companies(ERP,CRM,WMS,MOBILE,MISin combination with the solutionsCertified Electronic Invoicing Provider andmyDATA) as well as specialized applications forvertical markets(Retail, Gas Stations, Hotel Software, Pharmacies & Drugstores)

3. further strengthen its existing leadership position inpayroll systems andHRMS

4. the mediator aidsubsidiary of the companyPCSsolutionsFINTECHin the areas of systems for investment firms, investment management and insurance companies

5. the execution of a new targeted programstrategic partnerships and acquisitionswith emphasis on the development of the group’s solutions in new vertical markets

6. the combined utilization of aid & financial tools for the digital transformation of companies initiallyDevelopment Fundand thenDevelopment Lawandof the NSRF 2021-2027,which are estimated to help accelerate the implementation of investments in new information systems.

For its use2022the management of the Group estimates thatconsolidated saleswill exceed75 cm.€while themarginEBITDAwill move onlevels above 30% of turnover.

Mr. Ioannis MichosFounder of the Group, Chairman of the Board & CEO of Epsilon Net, commenting on the results, made the following statement:

“2021 was for her big familyEpsilonNetmilestone yearnot only for what we have achieved, but also because it allows us to get starteda new creative cycle in Greece and abroad.

Guided by the anthropocentric approach, the corporate vision and the commitment to our customers, we consistently continue to create the next day together. We methodically build a Group based onallinonesolutioncreating a strong working relationship with our customers. We contribute decisively with innovative solutions to the digital transformation of the Greek economy and entrepreneurship. At the same time, the significant increase of our customer base, is the starting point for achieving a significant degree of annual recurring income, increasing positive operating cash flows, which are the basis for the continuous development of our Group.

Our strategy was, is and will bewe generate daily value for our people, our partners and our shareholders.The results of 2021 give us the strength and the responsibility to continue our development course as the largest software Group for businesses in Greece “.