MGI Digital Technology : First Half Results FY 2021

Paris, July 29th 2021

First Semester 2021

A turnover of 16.6 M € in a still penalizing public health context

• Solid profitability expected for the half-yearo An EBITDA margin greater than 26% o An operating margin greater than 17% o A net margin of around 16%
• Free cash flow of over € 48 million as of June 30
• A gradual recovery that will be confirmed over the coming months
• All the resources in place to take full advantage of the return to normalcy expected in the first quarter of 2022

As expected, the first part of the 2021 financial year was penalized by the persistence of the public health crisis with strong restrictions on international travel and deliveries. In this context, the Group has remained fully committed to innovation and implementing its new solutions to take full advantage of the return to normal operating conditions, still expected in the first quarter of 2022. In this context, MGI Digital Technology remains fully confident in the strength of a solid financial situation, controlled cash consumption, and high profitability, with margin rates still expected to be in the double digits for the half- year.

For the first half of 2021, sales amounted to € 16.6 million against € 17.4 million over the same period in 2020. France and the rest of the international community remain penalized by the still complex public health conditions. In France, sales amounted to € 0.9 million, up 6.2% compared to the first half of 2020. Internationally (94% of total activity), sales were at € 16.5 million.

An EBITDA margin of over 26% is expected over the half-year.

For the first half, and despite the contrasting development of the activity, the Group will continue to post significantly positive results with margin rates still in double digits. Thus, the EBITDA margin should stand at over 26% of sales for the half-year. The operating margin is expected to be above 17%. Finally, the net margin is expected to be around 16% of sales for the period.

Strong growth engine to take advantage of the subsequent return to normal.

For the second half of the year, the gradual improvement in activity should be confirmed despite the caution imposed by the development of the public health situation.

As soon as a normal situation returns, the Group will be able to count on a rapid resumption of orders and deliveries, supported by the strength of the partnership with Konica Minolta.

In recent months, the launch of the first equipment explicitly developed for the Japanese Group has been carried out with the first orders. The large-scale commercial deployment of this equipment, called Acurio, will strengthen the sales potential within the Japanese Group's worldwide Production Printing network.

Alphajet: Arrival on the American continent, ready for commercial deployment

Regarding the Alphajet, an Industrial Printing platform dedicated to Digital Packaging, a second demonstration center has been opened in the United States. After Europe's installation in 2020, this new facility will make it possible to prepare future orders for this strategic equipment in Europe and North America starting in the first half of the year.

Printed Electronics: a promising engine for future growth

Finally, and as announced, innovation efforts are being pursued to address the global Printed Electronics market (printing of printed circuits, conductive tracks, photovoltaic cells, etc.). The competitive edge acquired by the Group will constitute a new acceleration engine for future growth with major global manufacturers.

At the end of September, MGI Digital Technology will also be present at the Lux Pack trade fair in Monaco, an event bringing together the world's most prominent players in packaging. This meeting will be an opportunity to present the latest Printed Electronics solutions developed by the Group to capture the Intelligent Packaging market, whose potential is considerable.

Given these elements coupled with the strength of a solid financial situation with cash reserves of over €

48 million at the end of June, MGI Digital Technology is poised to return to its historic growth path quickly.

Contacts

ACTIFINMGI	MGI Digital Technology
Stéphane RUIZ	Edmond Abergel
Tel: [phone]	Chairman and Chief Executive Officer
E-mail :[e-mail]	Tel: [phone]
	E mail: [e-mail]