Itesoft S A : 15 April – 2020 financial results

PRESS RELEASE

APRIL 15, 2021

2020 financial results

• Sales decline impacted by health crisis
• SaaS transition continues at a slower pace
• Rise in recurring revenue
• Lower expenses due to health context
• Publication of 2020 annual report on April 16, 2021

ITESOFT (ISIN Code: FR0004026151, Mnemo code: ITE), a European software developer specializing in solutions for automating and processing information flows, today announces the publication of its financial statements for the 2020 fiscal year, approved by the Board of Directors meeting held on April 14, 2021 and audited by the company's statutory auditors.

in M€, audited	2020	2019
Revenue	20.8	23.6
Gross operating income (EBITDA)	1.8	1.8
Depreciation and provisions	(1.6)	(1.2)
Current operating income	0.2	0.5
Operating income	0.2	0.5
Financial income	(0.4)	(0.1)
Taxes	(0.5)	(0.2)
Net results, Group share	(0.6)	0.4

Decline in sales impacted by health crisis

As announced previously, the COVID-19 crisis impacted professional contact and exchanges. Consequently, ITESOFT posted an 11.9% decline in sales revenue for 2020 with respect to 2019, reaching €20.8 million.

SaaS transition continues at a slower pace

The year was also marked by a somewhat slower transition towards the SaaS (Software as a Service) model. As of December 31, 2020, ITESOFT posted ARR of €2.9 million, compared to €2.2 million at the

ITESOFT SA - 368,030 euros share capital - RCS Nîmes B 330 265 323 NAF code: 5829C - www.itesoft.com

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PRESS RELEASE

APRIL 15, 2021

end of 2019. This progression of SaaS sales did not fully offset the decline in license business for the year, resulting in an overall decrease in software sales.

ARR corresponds to the annual value of a given contract for a full year after the implementation phase. ARR measured as of December 31 in a given year indicates a trend for predicting annual SaaS revenue the following year.

Rise in recurring revenue

2020 was nonetheless marked by growth in recurring revenue, comprising both SaaS sales and Maintenance revenue. These revenue sources rose by 3.5% to reach €14.7 million for the year, accounting for 71% of overall revenue in 2020, compared to 60% in 2019.

Lower expenses due to health context

In 2020, ITESOFT took measures to counter the negative effects of the health crisis on its business, notably:

• With unchanged staffing, a decrease in personnel expenses was derived partly from consolidating European Marketing within France, and partly from the departure of two directors for whom salaries had been provisioned as risks and expenses.
• A reduction in external expenses, in particular travel and marketing expenses, which were lower due to the health crisis.
• Decreased outsourcing expenses.

Thanks to the company's efforts in this area, gross operating surplus remained stable at €1.8 million.

After taking into account depreciation allowance and provisions of €1.6 million, operating income reached €0.2 million, down from 2019.

The Group share of net results shows a net loss of (€0.6) million compared to a gain of €0.3 million in 2019.

As of December 31, 2020, the Group continues to hold a solid financial situation, with the balance sheet showing:

• €8.7 million in equity
• €9.7 million in financial debt over one year (including lease debt of €3.9 million related to the application of the IFRS 16 standard and a State Guaranteed Loan (PGE) of €5 million.
• Cash holdings of €13.3 million.

Publication of 2020 annual report

The annual financial report for the 2020 fiscal year, included in the company's Registration Document, will be made available publicly and filed with the French Autorité des Marchés Financiers (Financial Markets Authority) no later than April 16, 2021. The report may be accessed on the ITESOFT web site (www.itesoft.fr).

ITESOFT SA - 368,030 euros share capital - RCS Nîmes B 330 265 323 NAF code: 5829C - www.itesoft.com

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About ITESOFT - www.itesoft.fr

ITESOFT develops software solutions for business process digitalization, with particular specialization in customer experience, operational excellence, and supplier relations.

Leveraging development on artificial intelligence and robotics technologies from the very beginning, ITESOFT process automation and digitalization solutions for business processes are designed to provide maximum efficiency, speed, and security for supplier invoice processing, online contracting, credit approval, claims management, service requests and more. The ITESOFT software offering is the only solution on the market that brings together the three key components for organizational performance: information capture, process automation, and risk detection.

Founded in 1984, ITESOFT is a member of TECH IN France, eFutura, DFCG, FNFE, OMG, and Valconum. The company has been listed on the Euronext Paris stock exchange (compartment C) since February 2001. ITESOFT generated €20.8 million in consolidated turnover in 2020, 17% of which was reinvested in R&D. Over 650 customers in 35 countries optimize their processes with ITESOFT solutions.

CONTACTS

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76-78 rue Saint Lazare, 75009 Paris, France Tel: [phone]

Alexandre Commerot, [e-mail] Press relations: Isabelle Dray, [e-mail]

ITESOFT SA - 368,030 euros share capital - RCS Nîmes B 330 265 323 NAF code: 5829C - www.itesoft.com

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