Circle S p A : 2021 03 29 Circle Financial Statement FY 2020

PRESS RELEASE

CIRCLE GROUP: RESULTS FOR THE YEAR 2020 APPROVED

VALUE OF PRODUCTION +23% (7.5 MILLION EURO), REVENUES FROM PROPRIETARY SOFTWARE +30%, NET PROFIT OF THE PARENT COMPANY 0.6 MILLION EURO (+10%), NET FINANCIAL POSITION (CASH POSITIVE) +85% (0.6 MILLION EURO), STRONG DEMAND FOR INNOVATIVE FEDERATIVE SERVICES OFFERED AS SAAS IN THE FIRST TWO MONTHS OF 2021 (+55%).

Main consolidated results at 31st December 2020:

• ● Value of production Euro 7.5 million Euro +23% (6.1 million Euro at 31st December 2019) with an increase of revenues from proprietary software (in particular, Milos® and MasterSPED) +30%

• ● Adjusted EBITDA 1.3 million Euro (1.5 million Euro at 31st December 2019) and Adjusted EBIT 0.65 million Euro (0.9 million Euro at 31st December 2019)

• ● Net profit 0.03 million Euro (0.5 million Euro at 31st December 2019)

• ● Strong improvement of Net Financial Position (cash) 0.61 million Euro (0.33 million Euro at 31st December 2019) despite cash flows from investment for M&A, investment for product evolution as well as non-recurrent activities for market development and internationalization for a total amount exceeding 1.3 million Euro

• ● Confirmation of growth targets of "2024 Strategic Road Map" thanks to the resilience of the business model of Circle Group oriented to the digitalization of ports, terminals and intermodal logistics

• ● Strong demand for innovative federative services offered as SaaS in the first two months of 2021 (with a further +55% compared to the first two months of 2020).

Milan, March 29th, 2021

The Board of Directors of Circle S.p.A., ("Circle" or the "Company"), company heading the homonymous Group specialized in the analysis and development of automation and digitalization solutions for port and intermodal logistics sectors, listed on the AIM Italia market organized and managed by Borsa Italiana, during the conference call meeting held today, approved the Consolidated Financial Statements and the Draft Separate Financial

Statements at December 31st 2020.

Luca Abatello, CEO at Circle S.p.A. commented as follows the results of year 2020 which, despite the critical issues related to the Pandemic, confirmed the trend of growth of Circle Group both in terms of economic and financial results, both with regard to projects

completed and new business developed: "2020 has been marked by a further double digit increase (+30%) of revenues resulting from proprietary software and by the reactivity that

Circle demonstrated by rapidly expanding its offer with new federative services, agile and flexible services conceived to answer to the strong demand for logistic digitalization even more urgent due to the Pandemic.

With reference to our strategy of growth for external lines, as announced last November 30th, we believe that the joint venture agreement with Magellan, Portuguese entity delivering advocacy services towards the European Institutions with which we are integrating Circle Connecting EU team, is of central importance in order to maximise our capability of exploiting any opportunity related to Next Generation EU fund and Italian "National Recovery and Resilience Plan" .

Major pilot projects of European projects related to innovative maritime, logistic and customs services are ongoing in the Med area with the participation of two of most important Italian ship-owners, Ignazio Messina & C and Tarros.

I also remember that in July we brought to 51% our participation to the network of enterprises Log@Sea with the objective of strengthening the offer of solutions for Gate automation and digitalisation of port and intermodal nodes through the most advanced VCA ("Video Content Analysis") modules based on Machine Learning and Deep Learning

("AI technology") techniques, Blockchain and IoT.

Lastly, I'd like to mention two important elements that are giving additional competitiveness to our organization: new EU Branding line of business, which aims at strenghtening the positioning at European level of companies and organizations of maritime, trasport and logistic sectors, and Optimization 4.0, which will develop optimization projects of major intermodal hubs".

In view of a further financial strenghtening of the Company and consistent with "Decreto Liquidità" it was also signed in February 2021 a new strategic and financial agreement with Banca Carige, through the injection of a loan at six years for 0.5 million Euro.

Consolidated highlights at 31st December 2020

CIRCLE Group recorded a Value of Production of 7.5 million Euro, + 23% compared to 6.1 million Euro at 31st December 2019. The growth of revenues from proprietary software, also offered as cloud-based SaaS (Software As A Service), confirmed the trend of progressive increase of 2019 with a +30% (+50% if only SaaS solutions are considered).

ADJUSTED EBITDA totalled 1.3 million Euro (1.5 million Euro at December 31st 2019) non including non-recurrent operating costs for market development and internationalization of new software modules (arising also from the Pandemic which requested an even smarter approach to the market, new cooperation modalities and a drastic acceleration of the cloud mode) equal to about 0.6 million Euro.

EBITDA amounted to 0.7 million Euro (1.2 million Euro at December 31st 2019) resulting in a 9% EBITDA Margin.

ADJUSTED EBIT totalled 0.65 million Euro (0.9 million Euro at December 31st 2019), as a result of adjustments on adjusted EBITDA, after amortisations and depreciation of about 0.7 million Euro.

EBIT amounted to 0.04 million Euro (0.6 million Euro at December 31st 2019).

Net Profit totalled 0.03 million Euro (0.5 million Euro at December 31st 2019).

Net Financial Position (cash) amounted to 0.61 million Euro (0.33 million Euro at December 31st 2019) despite cash flows from investment for M&A, investment for product evolution as well as non-recurrent activities for market development and internationalization for a total amount exceeding 1.3 million Euro.

Equity stood at 4.4 million Euro (4.4 million Euro at December 31st 2019).

Circle S.p.A. highlights at December 31st 2020

Circle recorded a Value of Production of 4.1 million Euro, + 30% compared to 3.1 million Euro at 31st December 2019.

ADJUSTED EBITDA totalled 1.2 million Euro, +35% compared to 0.9 million Euro at December 31st 2019, non including non-recurrent operating costs for market development and internationalization of new software modules equal to about 0.3 million Euro, with ADJUSTED EBITDA MARGIN of about 30%.

EBITDA amounted to 0.94 million Euro (about 0.6 million Euro at December 31st 2019) resulting in a +63% and a 23% EBITDA Margin.

ADJUSTED EBIT totalled 0.85 million Euro (0.6 million Euro at December 31st 2019), as a result of adjustments on adjusted EBITDA, after amortisations and depreciation of about 0.37 million Euro.

EBIT amounted to 0.6 million Euro, more than doubled compared to 0.25 million Euro at December 31st 2019.

Net Profit totalled 0.6 million Euro, +10% compared to 0.5 million Euro at December 31st 2019.

Net Financial Position (cash) amounted to 0.33 million Euro (0.1 million Euro at December 31st 2019) despite cash flows from investment for M&A, investment for product evolution as well as non-recurrent activities for market development and internationalization for a total amount exceeding 0.7 million Euro.

Equity stood at 4.6 million Euro (4.0 million Euro at December 31st 2019).

Allocation of Net Profit

The Board of Directors of Circle S.p.A. resolved to propose to the General Meeting to allocate the Net Profit for the year, totalling 577,976 Euro, to the retained earnings reserve.

Own shares

Own shares of the Company are equal to 17,160 at December 31st 2020 (0.4945% of total shareholders' equity).

Significant events during the reporting period