IEnergizer : Interim Results

Interim Statement September 2020

www.ienergizer.com

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12 November 2020

iEnergizer Limited

("iEnergizer", the "Company" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020

iEnergizer, the technology services and media solutions leader for the digital age, reports another record set of interim results for the six months ended September 30, 2020. Following the increase in both earnings and interim dividend the Board looks forward to the remainder of the year with confidence.

Financial Highlights: Enhanced profitability and margin improvements despite temporary revenue impact of the COVID- 19 pandemic.

• EBITDA1 up by $1.6m to $30.7m (H1 2020: $29.1m)
• Increased EBITDA margin at 34.1% (H1 2020: 30.2%)
• Group Revenue down 6.5% to $90.2m (H1 2020: $96.5m), reflecting reduced business from clients impacted by government lockdown measures
• Operating profit increased to $27.9m (H1 2020: $26.8m)
• Increased operating profit margin at 30.9% (H1 2020: 27.8%)
• Profit before tax increased to $26.9m (H1 2020: $25.0m)
• Higher profit before tax margin at 29.9% (H1 2020: 25.9%)
• Profit after tax increased to $23.5m (H1 2020: $21.6m)
• Net Cash of $5.6m (31 March 2020: $1.6m)
• Proposing interim dividend of 5.72p per ordinary share ($14.36m) (H1 2020: 5.2p)

Operational Highlights: Continued focus on higher margin work and success in business development with existing international customers.

• Business Process Outsource ("BPO"): Service Revenue reduced by 7.6% to $54.9m in H1 2021 (H1 2020: $59.4m), due to reduced business from some clients in India. EBITDA margin grew to 37.3% at $20.8m (H1 2020: 33.5% at $20.3m), as COVID-19 positively impacted iEnergizer's largest and higher margin generating international verticals, offsetting the negative impact on smaller verticals (low-margin India- based travel and e-commerce work). BPO's outsized exposure to fast-growing markets of video gaming, BFSI, telecom and healthcare is expected to result in revenue growth going forward after the temporary decline in the first half of the year.
• Content Division: Service Revenue reduced by 5.6% to $33.7m in H1 2021 (H1 2020: $35.7m), as some key clients postponed high value projects to H2 2021, due to COVID-19. EBITDA margins grew to 28.8% at $9.9m (H1 2020: 24.5% at $8.8m) due to cost-savings and productivity enhancements from 90% of employees transitioning to work from home.
  o Increase in revenue share from higher margin E-Learning contracts helped to reduce the larger negative revenue impact on traditional publishing segments during global lockdowns in H1 2021. o Focussed on increasing its revenue share from the SaaS product line of "Scipris", investing in sales
  to promote this product line.

1 EBITDA has been calculated under the IFRS 16 accounting standards, under which a company's operating lease liabilities are shown as liabilities on the balance sheet, together with the related assets that correspond to the right to use such assets over the remaining life of the related lease contracts. If these impacts had not been taken into consideration, the EBITDA would have been $29.8m.

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iEnergizer Limited and its subsidiaries

Unaudited Condensed Consolidated Interim Financial Statements 30 September 2020 and 2019

• 1. Continuing to identify further opportunities in Anti Money Laundering /Know Your Customer services.
• New business development:
• 1. US based sales team is acutely focussed on selling additional services, specifically in the online learning market, which is expected to grow significantly due to new opportunities presented by remote education and operating systems, while working on its strategic priorities: to enhance and grow key accounts; to identify and win new business through new customers; as well as target our

existing accounts; and to cross-sell and generate leads for new product launches.

1. Scalability, breadth of services and a highly trained workforce allows iEnergizer to take advantage of industry tailwinds in highly profitable verticals.

• 1. The Company has continued to acquire new customers, in H1 2021 across iEnergizer's business lines of Business Process Outsource and Content Services Division, with revenue expected to grow from H2 2021 onwards for these new customers.
• Cost management:
• 1. Transition to agent work-from-home ("WFH") model has increased efficiency, profitability, client loyalty, productivity, and decreased costs.

1. Increased proportion of division-specific higher margin international work, particularly in non- voice-based processes including: entertainment gaming support; BFSI; Content technology; and E-Learning.

• 1. Effective use of technology to handle greater volumes from key customers.
• COVID-19
• 1. The Company has taken important steps to ensure that it is well positioned to fully support the requirements of its customers and staff. Business is operating efficiently in servicing its customers,

with most employees successfully transitioned to remote working.

1. As the lockdown measures are being eased, employees catering to Indian customers are now returning to the Company's offices, following government and local authority best-practice

guidelines.

1. This provides the Directors with confidence that the Group's operational efficiency will increase

to normal levels as the Government of India continue to reduce the lockdown measures.

• 1. The Company's balance sheet, net cash position and its long-term customer relationships remain strong.
• Interim Dividend:
• 1. In line with the progressive dividend policy, the Company is pleased to announce an interim dividend of 5.72p with the dividend record date of 27 November, 2020. This interim dividend reflects the Board's confidence in the Group's business plan and growth prospects.

1. The Company's Ordinary Shares are expected to go ex-dividend on 26 November, 2020 and the interim dividend is expected to be paid on 18 December, 2020.

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iEnergizer Limited and its subsidiaries

Unaudited Condensed Consolidated Interim Financial Statements 30 September 2020 and 2019

Marc Vassanelli, Chairman of iEnergizer, commented:

"Despite challenges in some business areas due to the impact of COVID-19 on our customers, iEnergizer has demonstrated high resilience during this period. The continued growth in profit margins has been driven by our colleagues' continued efforts in deepening existing customer relationships and via iEnergizer's compelling and evolving proposition, combined with careful and focused cost management. Reflecting the Group's strong balance sheet and the cash generative nature of the business, we are pleased to announce an interim dividend of 5.72p, continuing the trend started in H1 2020.

"During this unprecedented time of COVID-19, we remain in close discussions with our customers to ensure that we meet their needs and requirements, while supporting our staff to work safely and remotely as per government guidelines, to serve customers at maximum capacity and efficiency on all our services.

"With iEnergizer's solid foundation, proven strength in operational execution, new sales initiatives, differentiated offerings, healthy balance sheet, and with substantial opportunities for further growth identified, we expect sustained business performance and the Board looks forward to the remainder of the year with confidence."

-Ends-
iEnergizer Ltd.	+44	(0)1481 242233
Chris de Putron
Mark De La Rue
FTI Consulting - Communications Adviser	+44	(0)20 3727 1000
Jonathon Brill / Eleanor Purdon
Arden Partners - Nominated adviser and Broker	[phone]
Ciaran Walsh / Benjamin Cryer/ Steve Douglas / Dan Gee-Summons

(Corporate Finance)

James Reed-Daunter (Equity Sales)

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