Datalex : 2021 Interim Report - 2 September 2021

Datalex plc

H1 2021 Financial Report

Improved EBITDA performance, marginal revenue decline

Dublin, Ireland - 2 September 2021: Datalex plc (the "Company" or the "Group") (Euronext Growth Dublin: DLE), a

market leader in digital retail technology focused on the airline market, today announces its results for the six months ended 30 June 2021 ("H1 2021").

Financial highlights:

• Total revenue for the six month period ending 30 June 2021 was $12.6 million, a 5% decline versus the same period in 2020 (H1 2020: $13.2 million).
• Platform revenue of $7.5 million declined by 3% in comparison to H1 2020 (H1 2020: $7.7 million).
• Total operating costs before exceptional items in the first half of 2021 decreased by 22% to $12.2 million (H1 2020: $15.6 million). This included a supplier discount in the sum of $1.5 million.
• Adjusted EBITDA of $1.8 million in H1 2021, an increase of $3.1 million versus the same period in 2020 (H1 2020: Loss of $ 1.3 million). Foreign Currency adjusted EBITDA of $1.1 million in H1 2021 - an increase of $2.4 million versus the same period in 2020 (H1 2020: Loss of $1.3 million).
• Post the period, on 8 July 2021 the Group completed a capital raise of $29.7 million (€25 million). A proforma Balance Sheet has been presented in the Interim Report, which demonstrates that the cash balance would have been US$11.4million, had the Capital Raise been completed before 30 June 2021.

Commenting on today's announcement, Sean Corkery, CEO of Datalex, said:

"In the first half of 2021, we delivered an improved Adjusted EBITDA performance versus the same period in 2020. This was primarily driven by controlled management of our operating costs which decreased 22% versus the first six months of 2020. Revenues declined marginally by 5% versus the same period in 2020. This was in line with our expectation due to the continuing impact of COVID-19 on the airline industry and the further impact of the Delta variant in 2021. Platform revenues remained relatively stable during the period, and our customers continued to prioritise and honour our commercial terms.

The recovery from the impact of COVID-19 on the airline industry will take time and airlines continue to operate in a COVID-centric backdrop which has caused them to delay and extend IT and digital investment decisions. However, we have experienced a considerable increase in sales pipeline activity in the second quarter of 2021, as airlines began to reconsider investment in their retailing technology as part of their recovery strategies.

Throughout the period we have invested in our SaaS portfolio of products and we have continued to support our customers. I am pleased that we have recently contracted with a current customer for the latest version of our NDC product and for them to participate in a Dynamic Pricing production trial. We also contracted with a Tier 1 airline to complete a Dynamic Pricing production trial which commenced during the first half of 2021.

We also used this time to strengthen our balance sheet by completing a capital raise of €25 million ($29.7 million) in July 2021. This allowed the Group to repay its existing debt facility and enables acceleration of investment in its product roadmap and provides sufficient working capital to implement new revenue opportunities.

I would like to thank all of the team at Datalex for their continued resilience and adaptability and look forward to the next stage of the recovery."

Notes

The financial information in this announcement is not audited and does not constitute statutory financial statements of Datalex plc. The statutory financial statements for FY 2021 will be prepared in accordance with International Financial Reporting Standard 15 "Revenue from contracts with customers" (IFRS 15) which came into effect on 1 January 2018.

IFRS 15 recognition rules specify that timing of revenue recognition may be affected by factors outside our control, for example, including the credit rating of our customers. This may impact on the timing of recognition of forecast revenues and costs, as included in this guidance statement.

Adjusted EBITDA (Note 4) is defined as earnings from operations before (i) interest income and interest expense, (ii) tax expense, (iii) depreciation and amortisation expense, (iv) share-based payments cost and (v) exceptional items (see Note 7).

Foreign currency adjusted EBITDA (Note 4) is a KPI introduced during 2020. Our functional currency is US$. The Group loan funding is denominated in Euro as a result the adjusted EBITDA (Note 4) results of the group are subject to movements beyond managements control arising from movements in foreign exchange rates. The foreign exchange input into the foreign currency adjusted EBITDA (Note 4) KPI is arrived at by combining the foreign exchange movements per Note 8 and the additional foreign exchange movements (Gain of: US$189k) on those Euro denominated Trade Debtor balances fully provided at the end of 30 June 2021 (31 December 2020: Loss of US$398k, 30 June 2020: Gain of US$22k) and reported as an exceptional item per Note 7.

This announcement contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results. Those forward-looking and other statements speak only as at the date of this announcement. Datalex undertakes no obligation to update any forward-looking statements. No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per share for the current or future financial years would necessarily match or exceed the historical published earnings per share.

Statements contained in this announcement are based on the knowledge and information available to the Board at the date it was prepared and therefore facts stated, and views expressed may change after that date. Nothing in this announcement is intended to constitute an invitation or inducement to engage in investment activity. This announcement does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This announcement does not constitute a recommendation regarding any securities.

About Datalex

Datalex is a market leader in digital commerce for travel retail. Datalex provides airlines with unique products to drive revenue and profit as digital retailers. Today the Datalex Digital Commerce Platform enables a travel marketplace of over one billion shoppers covering every corner of the globe, driven by some of the world's most innovative airline retail brands. Datalex's customers include JetBlue Airways, Air China, Tianjin Airlines, West Air, Guangxi Beibu Gulf Airlines, Urumqi Air, Air Changan, SAS, KLM, Turkish Airlines, Copa Airlines, Aer Lingus, Edelweiss, Air Transat and Trailfinders. The Group is headquartered in Dublin, Ireland,

and maintains offices across Europe,the USA and China. Datalex plc is a publicly listed company on Euronext Growth. Learn more at www.datalex.com or follow on twitter @Datalex.

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Datalex PLC

Half-Yearly Financial Report

For the six months ended 30 June 2021

Datalex plc

Chief Executive Officer's Review

For the six months ended 30 June 2021

During the first half of 2021, Datalex and its airline customers continued to be impacted by the ongoing effects of the COVID-19 pandemic. Whilst the pace of recovery at the macro level remains uncertain, Datalex remains resolutely committed to executing its growth strategy.

On 8 July 2021, the Group completed a Capital Raise of €25million (USD$29.7m) which will allow the Group to accelerate investment in its product roadmap and implement new revenue opportunities under a SaaS commercial model, which are both key components to this growth strategy. The Capital Raise also enabled the Group to strengthen its balance sheet by replacing the existing debt with equity. A proforma Balance Sheet has been presented in Note 24 that demonstrates how the Balance Sheet would have been presented has the Capital Raise and Tireragh Limited Loan repayment had of occurred on the 30 June 2021. In conjunction with the completion of the Capital Raise, Datalex also migrated to the Euronext Growth market on 8 July 2021, which is better suited to the Group's profile.

Financial review

• Total revenue for the six month period ending 30 June 2021 was $12.6 million, a 5% decline versus the same period in 2020 (H1 2020: $13.2 million).
• Platform revenue of $7.5 million declined by 3% in comparison to H1 2020 (H1 2020: $7.7 million).
• Services revenue of $4.3 million declined by 12% in comparison to H1 2020 (H1 2020: $4.9 million). The reduction in services revenue was attributable to certain airlines reducing IT spend in order to preserve cash reserves whilst their operations remained heavily impacted by COVID-19. Services revenue was also impacted by customer attrition (see strategy & operational review for further detail).
• Total operating costs before exceptional items in the first half of 2021 decreased by 22% to $12.2 million (H1 2020: $15.6 million). This included a supplier discount in the sum of $1.5 million.
• Adjusted EBITDAi of $1.8 million in H1 2021, an increase of $3.1 million versus the same period in 2020 (H1 2020: Loss of $ 1.3 million)
• Foreign Currency adjusted EBITDAii of $1.1 million in H1 2021 - an increase of $2.4 million versus the same period in 2020 (H1 2020: Loss of $1.3 million)
• Loss after tax for the period of $3.8 million (H1 2020: Loss of $4.8million). Net exceptional costs of $1.5million, primarily related to professional expenses associated with the Capital Raise initiated during the period and completed post period end (H1 2020: $1.2 million).
• Cash balance as at 30 June 2021 amounted to US $2.4 million, decreasing from $3.0 million on 31 December 2020 and $3.4 million at 30 June 2020. This does not reflect proceeds raised from the Capital Raise.

Strategy & operational review

1. • We are executing against the objectives we have set out in our strategy to return to accelerated and sustainable growth.
   • The Group has provided ongoing mission-critical support to customers during this challenging period and is closely involved in their future recovery strategies. There has been some customer attrition as previously disclosed, attributable to one customer who ceased trading and entered into administration in 2020 and to two customers who notified us in 2020 that they would be ceasing or reducing services with the Group. There has been interest in all of Datalex's products during the period and our modular approach has been well received by airlines.

   i Adjusted EBITDA (Note 4) is defined as earnings from operations before (i) interest income and interest expense, (ii) tax expense, (iii) depreciation and amortisation expense, (iv) share-based payments cost and (v) exceptional items (see Note 7).

2. Foreign currency adjusted EBITDA (Note 4) is a KPI introduced during 2020. Our functional currency is US$. The Group loan funding is denominated in Euro as a result the adjusted EBITDA (Note 4) results of the group are subject to movements beyond managements control arising from movements in foreign exchange rates. The foreign exchange input into the foreign currency adjusted EBITDA (Note 4) KPI is arrived at by combining the foreign exchange movements per Note 8 and the additional foreign exchange movements (Gain of: US$189k) on those Euro denominated Trade Debtor balances fully provided at the end of 30 June 2021 (31 December 2020: Loss of US$398k, 30 June 2020: Gain of US$22k) and reported as an exceptional item per Note 7.

Datalex plc

Chief Executive Officer's Review

For the six months ended 30 June 2021

• No new customers were added during the first half of 2021. In the second quarter of the period we experienced a considerable increase in activity with prospective customers and we exit the period with a healthy pipeline of opportunities to develop in the second half of 2021.
• The Group continued to invest during the period across all products. A key area of investment for the Group in 2021 was in Dynamic Pricing and Dynamic Offer. In the first half of 2021, we contracted with a Tier 1 airline to complete a dynamic pricing production trial. Similar trials are under review with a select number of airlines in H2 2021.
• The Group migrated all hosted customers to the cloud and decommissioned its on-premise data centre during the period. As a fully cloud based Company, this marks an important SaaS milestone for the Group. We continued to develop our strategic partnership with AWS and to capitalise on our Travel & Hospitality competency group status.
• Our people continued to work productively while working remotely and we provided ongoing support during this period of disruption. Following consultation with our team, we launched our plan to return to work under a hybrid working model and also assessed our future office space requirements.
• Without being able to frequently meet our customers in person, we held a virtual event during the period which was very well attended. We also held our first ever virtual event in China, in association with IATA, and we participated in a number of industry events.

Outlook

In light of continued market uncertainty, the Group believes it is prudent not to provide specific guidance at this time.

In the aviation industry, we anticipate that there will be a meaningful recovery in H2 2021 compared to the first half of the year, with pent-up demand for leisure travel in particular. The recovery will be dependent on easing of restrictions and widespread vaccination with positive momentum and progress evident in recent months. Notwithstanding this positive development, IATA estimate that it will be 2023 before the industry sees a full recovery and returns to 2019 passenger

volumes.iii

The recovery is not expected to be linear and equal across all markets. In light of this and recognising the nature of contracts with existing customers, it will take time for the Group to see the benefits of the recovery in air passenger volumes.

We do expect that as airlines have clearer sight of their own recovery trajectories, they will make investment decisions that have been since the start of COVID-19. Datalex's technology enables airlines to increase revenue, reduce costs and improve the retailing experience that airlines offer to their customers, all of which will be key areas of focus for airlines in the recovery.

As mentioned above, we have started to see momentum in this regard in the second quarter of 2021, we do not expect any material revenue growth from new opportunities to materialise until 2022 at the earliest.

iii https://www.iata.org/en/iata-repository/publications/economic-reports/an-almost-full-recovery-of-air-travel-in-prospect/