Entersoft S A : SA Annual Financial Report for 2020 (19/05/2021)

ENTERSOFT S.A.

Annual Financial Report for the Year 2020

(prepared in accordance with article 4 of L. 3556/2007 and the executive decisions of

the Board of Directors of the Capital Market Commission)

ENTERSOFT S.A.

G.E.MI. No.: 122264001000

KALLITHEA ATTICA (362, SYNGROU AVE. & EVRIPIDOU STR.)

It is certified that this Annual Financial Report concerning the year 2020 (01.01.2020-31.12.2020), is that which was unanimously approved by the Board of Directors of the Public Limited Company under the name "ENTERSOFT S.A." at its meeting on 21/4/2021 and is posted on the Internet in the legally registered with GEMI email address www.entersoft.gr, where it will remain at the disposal of the investment public for a period of at least ten (10) years from the date of its preparation and publication.

Annual Financial Statements	1
(January 01, 2020 to December 31, 2020)

ANNUAL FINANCIAL STATEMENTS

FOR THE YEAR 2020

STATEMENTS OF THE MEMBERS OF THE BOARD OF DIRECTORS

(According to article 4 § 2 of L.3556/2007)

The members of the Board of Directors of ENTERSOFT S.A.:

• Pantelis Nikolopoulos, Chairman of the Board of Directors and non-executive member,
• Antonios Kotzamanidis, Managing Director and executive member of the Board of Directors,
• Charalampos Avratoglou, Executive member of the Board of Directors,

in our above-mentioned capacity, specially appointed for this by the Board of Directors of ENTERSOFT S.A., state and certify by the present that from what we know:

1. The annual financial statements of ENTERSOFT, Group and Company, for the year from January 01, 2020 to December 31, 2020, prepared in accordance with the applicable International Financial Reporting Standards (IFRS), give a true and fair view of the Assets and Liabilities items, the Equity and the Results of the Company for the year 2020 as well as the companies included in the consolidation taken as a whole, in accordance with paragraphs 3 to 5 of article 4 of L.3556/2007.
2. The annual Report of the Board of Directors gives a true and fair view of the evolution, performance, position of the Company, as well as of the companies included in the consolidated financial statements as a whole, together with a description of the main risks and uncertainties addressed.

.

Pantelis N. Nikolopoulos	Antonios N. Kotzamanidis	Charalampos F. Avratoglou
Chairman of the Board of Directors	Chief Executive Officer	Executive Member of the Board of Directors

Annual Financial Statements	2
(January 01, 2020 to December 31, 2020)

CONTENTS
	Page
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR 2020..................................................................	2
1. Report of the Board of Directors .......................................................................................................	6
Introduction ...............................................................................................................................................................	6
Overview of significant events that occurred during the current year.....................................................................	7
Review of the Financial Results.............................................................................................................................	13
Forecast for 2021....................................................................................................................................................	18
Information about the Group ..................................................................................................................................	18
Important Agreements............................................................................................................................................	19
Loan Agreements...................................................................................................................................................	19
Intercompany balances and transactions..............................................................................................................	20
Significant Risks......................................................................................................................................................	22
Dividend Policy .......................................................................................................................................................	23
Environmental Matters............................................................................................................................................	23
Labor Matters..........................................................................................................................................................	23
Society.....................................................................................................................................................................	25
Property assets of the Company............................................................................................................................	25
Corporate Governance Statement.........................................................................................................................	26
Explanatory Report of the BOD (according to par. 7 and 8 of article 4 of Law 3556/2007).................................	37
Report on the Audit of the Separate and Consolidated Financial Statements..................................	40
3. FINANCIAL STATEMENTS FOR THE YEAR 2020 ...........................................................................	48
3.1 Statement of Financial Position of Group and Company (amounts in EURO) ..............................................	48
3.2 Statement of Comprehensive Income of Group and Company (amounts in Euro).......................................	49
3.3 Statement of Changes in Equity (amounts in Euro)........................................................................................	50
3.4 Statement of Cash Flows (amounts in Euro) ..................................................................................................	51
4. Information about the Group ...........................................................................................................	52
4.1 The Parent Company.......................................................................................................................................	52
4.2 Subsidiaries ......................................................................................................................................................	53
5. Basis of preparation of the Financial Statements ..........................................................................	54
6. Significant accounting policies .......................................................................................................	55
6.1 Amendments to published standards..............................................................................................................	55
6.2 Significant accounting judgments and estimates ............................................................................................	56
6.2.1 Judgments.....................................................................................................................................................	57
6.2.2 Estimates and assumptions..........................................................................................................................	57
6.3 Going Concern .................................................................................................................................................	57
6.4 Segment information ........................................................................................................................................	58
6.5 Consolidation ....................................................................................................................................................	58
6.6 Foreign currency...............................................................................................................................................	59
6.7 Property, plant and equipment ......................................................................................................................	59
6.8 Intangible Assets and Goodwill........................................................................................................................	60
6.9 Impairment of non-financial assets..................................................................................................................	61
Annual Financial Statements	3
(January 01, 2020 to December 31, 2020)

6.10 Financial assets and liabilities........................................................................................................................	62
6.11 Impairment of financial assets........................................................................................................................	65
6.12 Investments in subsidiaries............................................................................................................................	65
6.13 Cash and cash equivalents............................................................................................................................	65
6.14 Equity..............................................................................................................................................................	65
6.15 Leases ............................................................................................................................................................	65
6.16 Income tax & deferred tax..............................................................................................................................	68
6.17 Employee benefits..........................................................................................................................................	69
6.18 Grants .............................................................................................................................................................	70
6.19 Loans and borrowings....................................................................................................................................	70
6.20 Trade and other payables..............................................................................................................................	70
6.21 Provisions .......................................................................................................................................................	70
6.22 Revenue from contract with customers.........................................................................................................	70
6.23 Dividend distribution .......................................................................................................................................	72
6.24 Expenses........................................................................................................................................................	72
6.25 Fair value measurement ................................................................................................................................	72
7. Risk Management.............................................................................................................................	73
8. Group Structure ...............................................................................................................................	79
9. Segment Information and Revenue analysis ..................................................................................	79
10. Notes to the Financial Statements ................................................................................................	84
10.1 Property, plant and equipment.......................................................................................................................	84
10.2 Intangible assets.............................................................................................................................................	86
10.3 Acquisition of a subsidiary..............................................................................................................................	88
10.4 Goodwill ..........................................................................................................................................................	90
10.5 Investment in subsidiaries..............................................................................................................................	91
10.6 Other non-current assets ...............................................................................................................................	92
10.7 Trade and other receivables ..........................................................................................................................	92
10.8 Other receivables ...........................................................................................................................................	94
10.9 Other current assets.......................................................................................................................................	94
10.10 Financial assets at fair value through profit or loss .....................................................................................	95
10.11 Cash and cash equivalents..........................................................................................................................	95
10.12 Equity............................................................................................................................................................	96
10.13 Exchange differences arising from translation of foreign subsidiaries........................................................	98
10.14 Employees benefits......................................................................................................................................	98
10.15 Other non-current liabilities ........................................................................................................................	102
10.16 Trade and other payables..........................................................................................................................	102
10.17 Income Tax payable...................................................................................................................................	102
10.18 Other current tax liabilities..........................................................................................................................	102
10.19 Short-term borrowings................................................................................................................................	102
10.20 Other current liabilities................................................................................................................................	103
10.21 EBITDA.......................................................................................................................................................	104
10.22 Analysis of expenses by function...............................................................................................................	104
10.23 Other income / expenses...........................................................................................................................	105
Annual Financial Statements	4
(January 01, 2020 to December 31, 2020)

10.24 Finance income and expenses..................................................................................................................	105
10.25 Income tax..................................................................................................................................................	106
10.26 Earning per Share ......................................................................................................................................	107
10.27 Dividends....................................................................................................................................................	108
10.28	Payroll cost .................................................................................................................................................	108
10.29 Number of Personnel .................................................................................................................................	108
10.30	Related party transactions .........................................................................................................................	109
10.31 Benefits to Management and Executives..................................................................................................	110
10.32	Contingent assets - liabilities.....................................................................................................................	111
10.33	Other Information........................................................................................................................................	112
10.34 Impact of COVID-19...................................................................................................................................	112
10.35 Subsequent events ....................................................................................................................................	114

Annual Financial Statements	5
(January 01, 2020 to December 31, 2020)