Relatech

Earnings Release • Feb 16, 2021

Informazione Regolamentata n. 20162-21-2021		Data/Ora Ricezione 16 Febbraio 2021 08:46:02	AIM -Italia/Mercato Alternativo del Capitale
Societa'	:	Relatech S.p.A.
Identificativo Informazione Regolamentata	:	142540
Nome utilizzatore	:	RELATECHN02 - -
Tipologia	:	REGEM; 2.2
Data/Ora Ricezione	:	16 Febbraio 2021 08:46:02
Data/Ora Inizio Diffusione presunta	:	16 Febbraio 2021 08:46:03
Oggetto	:	RELATECH APPROVES 2021 BUDGET: EXPECTED SALES REVENUE OF EURO 26.2 MILLION
Testo del comunicato

Vedi allegato.

PRESS RELEASE

RELATECH APPROVES 2021 BUDGET: EXPECTED SALES REVENUE OF EURO 26.2 MILLION

+ 28% COMPARED TO REVENUES IN 2020 (PRO-FORMA DATA) AND + 43% COMPARED TO CONSOLIDATED REVENUES.

EXPECTED RECURRING REVENUES OF EURO 7.9 MILLION (30% OF TOTAL REVENUES)

Milan, 16th February 2021

Relatech S.p.A., Digital Enabler Solution Knowledge (D.E.S.K.) Company and innovative SME listed on AIM Italia market (Ticker: RLT), announces that, today, the Board of Directors of the Company approved the sales revenue budget for 2021 expected of Euro 26.2 million compared to the consolidated sales revenues for 2020, given that it does not consider any M&A transactions.

The Company has defined its objectives according to its business model which is based on the offer of:

• Innovation Services for the customer's strategic value analysis aimed at defining a digital innovation path by leveraging technological innovation to improve the efficiency of their business models

• Digital Solutions created within the proprietary cloud-based platform RePlatform, a platform of skills, methodologies and technologies, and a tool for creating innovative solutions on all cutting hedge technologies such as: Artificial Intelligence, Cybersecurity, Cloud, Blockchain, AR/VR.

Innovation Services

The activity supports customers in analysing their digital innovation needs through a strategic value analysis. It is estimated that this area can reach revenues of Euro 7.9 million with a 30% incidence on total revenues. These results will be achievable thanks to the experience gained by Relatech in recent years, where there has been a growing need from customers (with a strong acceleration in 2020) in the definition of new business models based on cutting hedge technologies. The activity of this area leads to the definition of a process

innovation strategy which is engineered by the Digital Solutions area by proposing the implementation of software solutions adapted to the customer's needs and based on the 5 modules of RePlatform

Digital Solutions

The growing demand for Innovation Services has an impact on the Digital Solutions area, where Relatech estimates that it will be able to achieve revenues of Euro 18.3 million with a 70% incidence on total revenues. Through the 5 modules of RePlatform that cover all 5 strategic areas of digital innovation, the client finds the answer to the needs of its business, in particular:

• ReData, Cognitive Analytics: embraces the world of Big Data, A.I. and machine learning
• ReYou, Digital Customer Experience: focuses on improving the customer experience (CX).
• ReThing, Physical/Digital Interaction: enables interaction with the physical world to acquire data, prevent possible disruptions and optimize production processes (IoT, Digital Twins)
• ReSec, Protection of Value: provides protection and security features for managed data and systems against intrusions and cyber attacks. Using blockchain-based data certification, it guarantees the veracity, unchangeability and non-repudiation of information.
• ReHub, Cloud Readiness: guarantees reliability, scalability and interoperability and compatibility with all types of public, private and hybrid cloud infrastructure.

Through Replatform, Relatech is able to offer both vertical solutions on various sectors including industry 4.0 (ReFab4.0), retail (ReZone) with specific customizations on pharma & health (ReZone Health) as well as tailor made solutions created on customer specific needs basis.

Within the context described above, Relatech expects the growth of the digital solutions area to have a positive impact on recurring revenues (based on recurring fees), which are estimated to reach Euro 7.9 million, accounting for 30% of total revenues.

The M&A transactions carried out in 2020 (Mediatech and Xonne) have positively contributed to the achievement of the Group's objectives in terms of further solutions that have

strengthened RePlatform in the ReSec and ReHub modules for the cybersecurity and cloud, part and in the ReThing modules and ReYou for technologies associated with Augmented Reality/Virtual Reality (AR/VR) and IoT. The entry into the Group perimeter of Mediatech (June 2020) and Xonne (July 2020) made it possible to consolidate the companies' results o for 6 and 5 months respectively, bringing the Group's consolidated revenues for 2020 to Euro 18.3 million while pro-forma revenues amounted to Euro 20.4 million (considering the 12-month revenues of the acquired companies).

The acquisition of the two companies has also made it possible to expand the customer base to which the offer is addressed as a whole and by 2021 it is believed that cross-selling can be intensified.

Consolidated data for the year 2020 shown above have not been audited.

The Board of Directors also approved a number of amendments to the Related Party Transaction Procedure to incorporate the new provisions of Consob Related Party Regulation no. 17221/2010 (RPT Regulation) - published in December 2020 and which will come into force as of 1 July 2021, this document will be made available on the company's website in the Investor Relations section.

Pasquale Lambardi, Chairman of the Board of Directors of Relatech, said: "Relatech has chosen to engage further with its stakeholders with the decision to communicate its 2021 revenue budget. We are very confident about the objectives that the Group intends to achieve, also in consideration of the fact that the market in which we operate, that of Digital Enabler Technologies, has global growth estimates of around €2 trillion in 2024, with a compound annual growth rate of 18% for the period 2018 - 2024 (Source: Gartner). In addition, a further boost to the sector will be provided by the funds allocated by the EU for the Recovery Fund and the Horizon27 program which are aimed at the digitalization of the country system and EU member states. The skills we have built up in our 20-year history and which have also been strengthened by our recent acquisitions, encouraged us to take an increasingly resilient and proactive approach to the Group's objectives for the near future, aware that the companies we address can no longer wait and must promptly intervene in the digital innovation process, also with the help of partners such as Relatech."

This press release is online at www.relatech.com (Investor Relations/Press Release section) .

***

Relatech (ticker RLT ISINIT0005433740), Digital Enabler Solution Knowledge (D.E.S.K.) Company, listed on AIM Italia since June 2019, is present on the market with innovative solutions dedicated to the digital transformation of companies. Relatech is an innovative SME focused on customers looking for the most innovative solutions, becoming a strategic partner for digitization and ICT services. Relatech constantly invests in Open innovation with an extensive R&D activity carried out internally and numerous partnerships with the main Italian Universities and research centers. Thanks to its digital platform and cloud based RePlatform, it provides services and develops innovative digital solutions in frontier technologies of Digital Enabler, such as Cloud, Cybersecurity, Blockchain, Big Data, Machine Learning, Artificial Intelligence, Internet of Things.

Contacts

ISSUER

Relatech S.p.A. - Investor Relations Veronica Carullo | investor@relatech.com | T: +39 02 2404909 | Via Ercole Marelli, 165 - 20099 Sesto San Giovanni (MI)

NOMAD & SPECIALIST BPER Banca S.p.A. | relatech@bper.it | T: +39 02 7274 9229 | Via Gaetano Negri, 10 - 20123 Milan

INVESTOR & MEDIA RELATIONS ADVISOR IR Top Consulting | ir@irtop.com | T: + 39 02 4547 3883/4 | Via Bigli, 19 - 20121 Milano