Tecnologia Avanzata dei Sistemi S p A : Data of Q3 2020 approved today (English version) -

Milan, November 13, 2020

PRESS RELEASE

TAS

THE BOARD OF DIRECTORS APPROVED THE INTERIM REPORT ON

OPERATIONS AT 30 SEPTEMBER 2020

ALL ECONOMIC-FINANCIAL INDICATORS SHOW

SUBSTANTIAL IMPROVEMENTS 18,1 % INCREASE IN EBITDA MARGIN

•  Gross Operating Margin (EBITDA): equal to € 7.3 million compared to € 5.6 million in the first nine months of 2019 (+ 28.8%), with an incidence on total revenues of 18.1% (15.2% the previous year)

•  Operating result (EBIT): positive for Euro 2.3 million, more than tripled compared to the value of Euro 0.7 million in the corresponding period of the previous year

•  Core revenues (39.6 million euros) up by 9.1% compared to 36.3 million euros in the nine months of 2019

•  Total revenues (40.3 million euros) up 8.4% compared to 37.2 million euros in the nine months of 2019

•  Net result for the period, after current and deferred taxes of 0.9 million euros, is clearly improving with a profit of 1.5 million euros, compared to a substantial break even in the nine months of 2019

•  Net financial position: negative for € 0.6 million (excluding the impact of IFRS 16) compared to a negative value of 0.4 million euros at 31 December 2019. Cash and cash equivalents doubled and totalized € 14.7 million, compared to € 7.3 million at 31 December 2019

The Board of Directors of TAS SpA (hereinafter the "Company" or "TAS"), a leading company in Italy in the supply of software and services for banking and financial applications, also present in Europe and America, met today under the presidency of Dario Pardi, and approved the interim management report as at 30 September 2020.

The President Dario Pardi commented: "We undoubtedly believe that the results of the first nine months of 2020 are satisfactory, not only for the growth of all the economic and financial indicators in a very particular period, but above all for the ability to create and distribute solutions and projects completely remotely. This ability has also been recognized by the international market which has rewarded us with the acquisition of new customers, both through our direct organization and through indirect channels. Strategically, TAS had the foresight to continue to invest in the development of the markets where TAS solutions are present and starting innovative paths towards the new emerging markets that the Open Banking framework have opened. The focus and expertise, combined with the partnerships concluded, are increasingly proving to be one of the success factors of the Company, increasingly a reference for banking services at national and international level.

"TAS Group - continues Valentino Bravi, Chief Executive Officer of the Group - confirmed the validity of its business model and the strategy on which it is based, closing the 9 months of 2020 with all the main economic and financial figures on the rise. Despite the situation of uncertainty linked to Covid19, which had repercussions on all production activities, TAS has never stopped its business, and the results at 30 September 2020 are in line with those of the first half and are improving compared to the same period. 2019, not impacted by the pandemic. Having achieved these objectives, we are now setting new and more ambitious ones: we will continue the projectsin progress, always keeping a focus on innovation, to further consolidate our position on the market for the supply of software and services for the financial and banking sector ".

RESULTS IN SUMMARY1

The following table summarizes the main economic-financial results of the Group as at 30 September 2020, which include for the third quarter the economic effects of the Infraxis Group acquired on 30 June 2020.

TAS GROUP (thousands of Euro)	30.09.2020	30.09.2019 *	Var.	Var%
Total revenue - of which characteristic - of which not characteristic Gross operating margin (Ebitda2) % of total revenues Operating result (Ebit) % of total revenues Result before taxes % of total revenues Net profit / (loss) for the period % of total revenues	40,276 39,561 715 7,275 18.1% 2,299 5.7% 2,445 6.1% 1,529 3.8%	37.157 36,261 896 5,648 15.2% 736 2.0% 233 0.6% (65) (0.2%)	3.119 3,300 (181) 1,627 2.9% 1,563 3.7% 2.212 5.4% 1,594 4.0%	8.4% 9.1% (20.2%) 28.8% 18.8% > 100% > 100% > 100% > 100% > 100% > 100%

* The data as at 30.09.2019 have been restated, compared to those approved by the board of directors on 14 May 2019, as they highlight the effects of the definitive accounting of the business combination of the subsidiary TAS EE carried out at the end of 2018.

TAS GROUP (thousands of Euro)	30.09.2020	31.12.2019	Var.	Var%
Total assets Total Net Equity Net equity attributable to the shareholders of the parent company Net financial position - of which liquidity - of which payables to banks and other lenders - of which leasing payables (IFRS 16) - of which towards shareholders	102.204 30,827 30.408 (8,823) 14,706 (10,369) (8,190) (4,969)	75,367 29,727 29,328 (9,544) 7,247 (2,743) (9,168) (4,879)	26,837 1.100 1,080 721 7,459 (7,626) 978 (90)	35.6% 3.7% 3.7% 7.6% > 100% > (100)% 10.7% (1.8%)

Employees at the end of the period (number)	549	477	72	15.1%
Employees (average over the period)	517	486	31	6.4%

1 La European Securities and Markets Authority (ESMA) ha pubblicato le linee guida sugli Indicatori Alternativi di Performance ("IAP") per gli emittenti quotati. Gli IAP si riferiscono a misure utilizzate dal management e dagli investitori per analizzare i trends e le performance del Gruppo, che non derivano direttamente dal bilancio. Queste misure sono rilevanti per assistere la direzione e gli investitori per analizzare l'andamento del Gruppo. Gli investitori non devono considerare questi IAP come sostituti, ma piuttosto come informazioni aggiuntive dei dati inclusi nel bilancio. Si precisa che gli IAP come definiti, potrebbero non essere paragonabili a misure con denominazione analoga utilizzate da altre società.

2 IAP: L'EBITDA (Earrning Before Interest Taxes Depreciations and Amortizations - Margine Operativo Lordo) rappresenta un indicatore alternativo di performance non definito dagli IFRS ma utilizzato dal management della Società per monitorare e valutare l'andamento operativo della stessa, in quanto non influenzato dalla volatilità dovuta agli effetti dei diversi criteri di determinazione degli imponibili fiscali, dall'ammontare e caratteristiche del capitale impiegato nonché dalle relative politiche di ammortamento. Tale indicatore è definito per il Gruppo come Utile/(Perdita) del periodo al lordo degli ammortamenti e svalutazioni di immobilizzazioni materiali e immateriali, degli oneri e proventi finanziari e delle imposte sul reddito.

Total Group revenues at 30 September 2020 amounted to 40.3 million euros compared to 37.2 million euros in the previous year, an increase of 8.4%.

Core revenues mainly consist of software licenses and related maintenance (34.6%), royalties, usage fees and SAAS services (Software As A Service, 13.5%), assistance and professional services fees (51.9%). Double-digit growth for revenues in Italy (+ 11.9%), revenues abroad substantially in line despite being more affected by the effects of the pandemic in progress, especially in North America and Spain. Sustained growth in revenues from the Eastern Europe area (+ 32.3%).

Ebitda for the period increased by 28.8% to 7.3 million euros compared to 5.6 million in the corresponding period of the previous year, with an incidence on total revenues of 18.1% compared to 15, 2% in 2019.

The operating result for the period more than tripled to 2.3 million euros compared to the value of 0.7 million euros in the corresponding period of the previous year.

The net result for the period, after current and deferred taxes of 0.9 million euros, is clearly improving with a profit of 1.5 million euros, compared to a substantial break even in the nine months of 2019, which included the negative impact deriving from the sale of Bassilichi CEE doo added to the negative result for the period of the former subsidiary equal to a total of 0.4 million euros.

The Net Financial Position, excluding the impact deriving from IFRS 16, is negative for € 0.6 million, compared to € 0.4 million at 31 December 2019. Including the impact of IFRS 16, the net financial position is negative for € 8.8 million compared to € 9.5 million at 31 December 2019. Cash and cash equivalents doubled and totaized € 14.7 million, compared to € 7.3 million at 31 December 2019. This improvement is due to the constant increase in the final margin, to careful management of working capital and includes the positive effect of € 2 million relating to the contribution of the newly acquired Infraxis Group.

Performance of operating activities

During the first nine months of 2020, the Group's investments continued in the various areas and the market action in European countries was strengthened as well as the definition of strategic partnerships for the development of the Group's business. In particular:

for the Financial Markets and Treasury area: the continuation of the development projects of the Aquarius platform, to manage liquidity, according to the principles of Basel 3, in an integrated way for securities, cash and collateral. Aquarius is specifically designed for the European market and integrated with Target2 and Target 2 Securities platforms as well as triparty collateral management systems. Thanks to the work of the interbank working group for the Eurosystem's T2 / T2S Consolidation project, created and coordinated by TAS with the support of Partners KPMG and Accenture, the Aquarius solution qualifies as the most flexible, complete and updated platform available for Banks engaged in challenging compliance impacts generated by the new settlement infrastructure of the European Central Bank which will replace the current systems in a big bang mode; for the Payments area, developments are being completed for the release of the new GPP platform (Global Payments Platform) which convergently includes solutions for:

Monetics: the continuation of the evolutionary developments on the Cashless 3.0® platform for the Italian market and the Card 3.0 IE (International Edition) suite for the foreign market and the strengthening of the ACS solution with the introduction of Risk Based Authentication for secure authentication of cardholders according to the EMVCo

3DSecure2.0 protocol; the Fraud Protect solution, equipped with predictive models regarding card-based payment transactions but also on credit transfers and instant payments, was also strengthened with particular attention to the implications of the PSD2 regulation in terms of Strong Customer Authentication exemption and Transaction Risk Analysis; the Payment Intelligence and Harmonizer Hub components were also finetuned, designed to simplify the behavioral analysis on Big data of customer transactions;

for the Payment Systems area: the continuation of the development and expansion activities of the TAS TPP Enabler solution following the interest shown by the Banks and Third Parties candidates to operate as PISP / AISP / CISP in response to the solicitations and opportunities introduced by the PSD2; the development of the Network Gateway3.0 platform also continues, adressing the evolution of the ESMIG access interface to the new Eurosystem Target Services (T2 / T2S / TIPS) and underpinning the functional coverage of the TAS Payment Hub offer which is also being continuously enhanced;

for the Financial Value Chain area: the strengthening of the PayTAS suite offer for eGovernment, in line with the pagoPA specification evolutions for PSPs (Payment Service Providers) and central and local Public Administration entities. The functional and technological review of the e-Banking and Corporate Banking solution for business customers also continues, particularly from a PSD2 and consumer perspective;

for the 2ESolutions area: the continuation of the project to reposition the TAS offer from a proprietary solution to a market proposition, with a focus on the Cloud, Customer eXperience and Social business collaboration, with an international perspective, built on Oracle Cloud Applications.

At a geographical level, the market action continues in North America where the offer of Card 3.0 IE combined with the Cloud proposition is enjoying success, as is the proposition of new vertical security solutions in the Latin American market and in Brazil.

Some final achievements to be remarked: the partnership agreement reached with Temenos, world leader in core banking solutions, for the inclusion of TAS Group's card solutions in its marketplace; NEXI's choice to rely on TAS TPP Enabler technology for the implementation of the solution object of the tender won at CBIGlobe; the choice of the CABEL Service Center to adopt TAS Payment Hub platform and the integrated Fraud Protect component; the affirmation of the Aquarius platform leader on the Italian market for the "T2/T2S Consolidation" project.

Significant events that occurred in the quarter

Among the activities and events worthy of note during the period, the following should be remarked:

• • On 1 July 2020, the Parent Company signed an Interest Rate Swap contract with BANCOBPM, detailed below:

  Type of financial transaction	Initial date	Deadline	Bank parameter rate	Customer parameter rate	Notional in Euros	Reference bank
  IRS	01/07/2020	06/30/2023	Euribor 3m	Euribor 3m + Spread 1.25%	4,000,000	BANCOBPM

  These are management hedging operations of the interest rate risk deriving from the loan taken out with BANCOBPMI