BMIT Technologies Plc

Quarterly Report • Aug 5, 2022

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by BMIT Technologies p.l.c ("the Company") pursuant to the Capital Markets Rules as issued by the Malta Financial Services Authority in accordance with the provisions of the Financial Markets Act (Chapter 345 of the Laws of Malta) as they may be amended from time to time.

Quote

In a meeting held earlier today, the Board of Directors of the Company approved the attached Group Interim Unaudited Financial Statements for the six-month period ended 30th June 2022.

The Interim Financial Statements are also available for viewing on the Company's website through the following link:

https://www.bmit.com.mt/wp-content/uploads/2022/08/BMITT-FS-June-2022.pdf

Unquote

Dr. Francis Galea Salomone LL.D. Company Secretary 5 th August 2022

Condensed Consolidated Interim Financial Statements

For the period 1 January 2022 to 30 June 2022

Company Registration Number: C 48299

Condensed Consolidated Interim Financial Statements For the period 1 January 2022 to 30 June 2022

Contents

	Pages
Directors' Report pursuant to Listing Rule 5.75.2	1 - 3
Condensed Consolidated Interim Financial Statements:
Condensed Consolidated Interim Statement of Financial Position	4
Condensed Consolidated Interim Statement of Comprehensive Income	5
Condensed Consolidated Interim Statement of Changes in Equity	6
Condensed Consolidated Interim Statement of Cash Flows	7
Notes to the Condensed Consolidated Interim Financial Statements	8 - 13
Statement pursuant to Listing Rule 5.75.3	14
Independent Auditor's Report on Review of Condensed Consolidated Interim Financial Information

BMIT Technologies p.l.c. Condensed Consolidated Interim Financial Statements Directors' Report pursuant to Listing Rule 5.75.2 As at 30 June 2022

This Half-Yearly Report is being published in terms of Chapter 5 of the Listing Rules of the Listing Authority – Malta Financial Services Authority and the Prevention of Financial Markets Abuse Act, 2005. The Half-Yearly Report comprises the reviewed (not audited) condensed consolidated interim financial statements for the six months ended 30 June 2022 prepared in accordance with International Financial Reporting Standards adopted by the EU for interim financial statements (International Accounting Standard 34, 'Interim Financial Reporting'). The condensed consolidated interim financial statements have been reviewed in accordance with the requirements of ISRE 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. The comparative statement of financial position has been extracted from the audited financial statements for the year ended 31 December 2021.

Principal activities

The Group offers its customers a range of data centre and hosting services, public, private and hybrid cloud services and managed IT services – which can be offered at customer premises, hosted at any of BMIT Technologies p.l.c. (BMIT Technologies) subsidiaries' data centres, or integrated with services offered by other services providers - thereby scaling the solutions from the desktop to the data centre and into the cloud.

The Group proudly delivers its services to over 500 corporate customers from various industries including online gaming, financial services, ICT, manufacturing, media, transportation, retail and hospitality. BMIT Technologies Group's scale and range of customers, partnerships with leading technology players and its employees' technology certifications enable it to obtain a proficient understanding of the business, technology and also regulatory requirements, as and where applicable.

Review of financial performance

During the six-month period ending 30 June 2022, the Group generated revenue amounting to €12.6 million compared to €12.8 million in the first half of 2021. This marginal decline of just over 1% was a result of a steady but challenging performance, characterized by increased technological and competitive pressures, customer and project delays, as well as by global issues with hardware lead times.

The Group has continued to secure new customers and revenues but technology evolution and the very nature of a cloud-driven business, is having an impact, as expected, on the contribution per customer. This lower contribution is being partially offset by our legacy data centre business, which business to-date is still relatively strong and profitable.

Notwithstanding these challenges, and despite the prevailing micro-economic environment, following a pandemic, with escalating costs, supply chain issues, as well as a global shortage in adequately skilled human capital, the Group has managed to register a relatively positive performance, driven by increased sales focus on cloud and managed services.

The marginal drop in revenue this year, resulted in a similar reduction in the cost of sales which decreased from €6.8 million to €6.6 million, preserving Gross Profit margins at 48%. The Group continued to benefit from savings in the cost of power, which resulted from eco-friendly measures implemented earlier, in late 2021.

Due to the lifting of Covid restrictions, certain activities such as travelling, participation in marketing events and staff welfare activities, resumed. This increased activity resulted in a marginal increase in Administrative expenses from €1.6 million to €1.7 million.

The slight drop in revenue and increase in costs resulted in a reported Earnings before interest, tax, depreciation and amortisation (EBITDA) for the first six months of 2022 of €5.4 million compared to €5.7 million last year. The next table shows the computation of EBITDA, after the elimination of depreciation and amortisation charges from costs.

Condensed Consolidated Interim Financial Statements Directors' Report pursuant to Listing Rule 5.75.2

As at 30 June 2022

	Six months ended 30 June 2022 €'000	Six months ended 30 June 2021 €'000
Revenue	12,647	12,815
Cost of sales	(6,619)	(6,756)
Administrative expenses	(1,685)	(1,579)
Add back depreciation and amortisation charges	1,038	1,178
EBITDA	5,381	5,658
EBITDA margins	42.54%	44.15%

The Group recorded a Profit Before Tax of €4.2 million compared to €4.4 million last year. Profit After Tax for the six-month period was €2.6 million compared to €2.7 million last year.

Review of financial position

As at 30 June 2022, the Group's total assets amounted to €23.9 million (31 Dec 2021: €25.5 million), of which €6.9 million (31 Dec 2021: €7.7 million) were current assets.

Total liabilities as at 30 June 2022 were €15.5 million (31 Dec 2021: €14.7 million), of which €8.9 million (31 Dec 2021: €8.0 million) were current liabilities. The Group kept the same level of borrowing.

Outlook

The impact of the pandemic and the war in Ukraine on the state of global, and especially European, economies is yet uncertain, and we still have to understand the short to medium term impact any downturn may have on the Maltese economy and our customers, as well as on existing and future investments.

At the same time, Malta's removal from the grey-listing is certainly positive and we remain optimistically cautious for a timely resolution to the full restoration of Malta's reputation internationally.

As had been forecasted in the business planning process for 2022, the market is rapidly evolving on the lines of challenging trends, driven by pervasive technological and economic market considerations. The continued and more aggressive migration to cloud at the detriment of our data centre business, together with continued competition from large scale international cloud providers, is a reality and anticipated.

The key trend therefore, to prevail in the short to medium term, will be the accelerated pace at which this migration will take place, and which reality will continue to drive the Group's increased focus on cloud and managed services.

Of course, the above focus is parallel to our continued investment in our infrastructure and in strengthening our position as one of Malta's leading technology platforms and solutions providers. We are exploring opportunities that will leverage our expertise in managing mission-critical technology and infrastructure and continue strengthening our diversification plans, both in terms of offering and customers. As stated in previous communications, our objective for market expansion within and beyond our Maltese shores remains a priority in support of our strategies. The Group remains committed to pursue a well-managed investment programme to help achieve sustainable business growth and long-term return to our shareholders.

BMIT Technologies p.l.c. Condensed Consolidated Interim Financial Statements Directors' Report pursuant to Listing Rule 5.75.2 As at 30 June 2022

With the right decisions and no further major disruptions, we remain cautiously optimistic that our current performance can continue to be sustained for the foreseeable future. We will continue to actively monitor local and international developments to overcome the challenges we face, whether economic, regulatory or technological.

Dividends

A dividend in respect of the year ended 31 December 2021 of €0.025 (2020: €0.0292) per share, amounting to €5,083,775, was declared and paid during the period ended 30 June 2022.

Approved by the Board of Directors on 5th August and signed on its behalf by:

Dr. Arthur Galea Salomone Reuben Attard Director Director

Building SCM 02, Level 2 SmartCity Malta, Ricasoli, Kalkara, SCM 1001, Malta

Condensed Consolidated Interim Financial Statements

Statement of financial position

For the period 1 January 2022 to 30 June 2022

	As at 30 June	As at 31 December
	2022	2021
ASSETS	Unaudited €'000	Audited €'000
Non-current assets
Property, plant and equipment	9,371	9,987
Right-of-use assets	2,612	2,797
Intangible assets	3,203	3,203
Investment in associates	1,573	1,573
Trade and other receivables	278	246
Total non-current assets	17,037	17,806
Current assets
Inventories	163	170
Trade and other receivables	2,956	1,734
Cash and cash equivalents	3,734	5,803
Total current assets	6,853	7,707
Total assets	23,890	25,513
EQUITY AND LIABILITIES
Equity
Share capital	20,360	20,360
Other reserves	(4,097)	(4,097)
Retained earnings	(7,919)	(5,476)
Total equity	8,344	10,787
Non-current liabilities
Borrowings	3,540	3,536
Lease liabilities	2,480	2,670
Trade and other payables	247	210
Deferred tax liabilities	337	331
Total non-current liabilities	6,604	6,747
Current liabilities
Lease liabilities	417	391
Trade and other payables	7,301	7,350
Current tax liabilities	1,224	238
Total current liabilities	8,942	7,979
Total liabilities	15,546	14,726
Total equity and liabilities	23,890	25,513

The notes on pages 8 to 13 are an integral part of these condensed consolidated interim financial statements.

The condensed consolidated interim financial statements set out on pages 4 to 13 were approved by the Board of Directors on 5 August and were signed on its behalf by:

Dr. Arthur Galea Salomone Reuben Attard Director Director

Condensed Consolidated Interim Financial Statements

Statement of comprehensive income

For the period 1 January 2022 to 30 June 2022

	Six months ended 30 June 2022 Unaudited €'000	Six months ended 30 June 2021 Unaudited €'000
Revenue	12,647	12,815
Cost of sales	(6,619)	(6,756)
Gross profit	6,028	6,059
Administrative expenses	(1,685)	(1,579)
Operating profit	4,343	4,480
Interest expense	(121)	(98)
Profit before tax	4,222	4,382
Tax expense	(1,581)	(1,633)
Profit for the period	2,641	2,749
Earnings per share (€)	0.013	0.014

The notes on pages 8 to 13 are an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated Interim Financial Statements

Statement of changes in equity

For the period 1 January 2022 to 30 June 2022

Unaudited	Attributable to the owners of the Company
		Other reserves - adjustment relating to non-
	Share capital €'000	controlling interest €'000	Retained earnings €'000	Total equity €'000
Balance at 1 January 2021	20,360	(4,097)	(4,590)	11,673
Comprehensive income Profit for the period	-	-	2,749	2,749
Transactions with owners Dividends	-	-	(5,949)	(5,949)
Balance at 30 June 2021	20,360	(4,097)	(7,790)	8,473
Balance at 1 January 2022	20,360	(4,097)	(5,476)	10,787
Comprehensive income Profit for the period	-	-	2,641	2,641
Transactions with owners Dividends	-	-	(5,084)	(5,084)
Balance at 30 June 2022	20,360	(4,097)	(7,919)	8,344

The notes on pages 8 to 13 are an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated Interim Financial Statements

Statement of cash flows

For the period 1 January 2022 to 30 June 2022

	Six months ended 30 June 2022 Unaudited €'000	Six months ended 30 June 2021 Unaudited €'000
Cash flows from operating activities Cash generated from operations Interest paid on lease liabilities Interest paid on borrowings Income tax paid Income tax refunded	4,273 (46) (60) (597) 9	7,704 (52) (60) (536) -
Net cash from operating activities	3,579	7,056
Cash flows from investing activities Purchases of property, plant and equipment, net of disposals Net cash used in investing activities	(326) (326)	(1,125) (1,125)
Cash flows from financing activities Dividends paid Principal elements of lease payments Net cash used in financing activities	(5,084) (238) (5,322)	(5,949) (225) (6,174)
Net movement in cash and cash equivalents Cash and cash equivalents at beginning of period	(2,069) 5,803	(243) 3,918
Cash and cash equivalents at end of period	3,734	3,675

The notes on pages 8 to 13 are an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated Interim Financial Statements Notes to the Condensed Consolidated Interim Financial Statements

For the period 1 January 2022 to 30 June 2022

1. General information

BMIT Technologies p.l.c. ("the Company") is a public listed company, with its equity traded on the Malta Stock Exchange. The Company is domiciled and incorporated in Malta. The condensed consolidated interim financial statements as at 30 June 2022 and for the six-month period then ended comprise the Company and its subsidiaries (together referred to as the "Group").

The consolidated financial statements of the Group as at and for the year ended 31 December 2021 are available upon request from the Company's registered office at Building SCM 02, Level 2 SmartCity Malta, Ricasoli, Kalkara, SCM 1001, Malta. They are also available for viewing on its website at www.bmit.com.mt.

These condensed consolidated interim financial statements were approved for issue by the Board of Directors on 5th August 2022.

The condensed consolidated interim financial statements have been reviewed in accordance with the requirements of ISRE 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'.

2. Basis of preparation

The condensed consolidated interim financial statements as at and for the six-month period ended 30 June 2022 have been prepared in accordance with International Financial Reporting Standards as adopted by the EU applicable to interim financial reporting (International Accounting Standard 34, 'Interim Financial Reporting'). The financial statements have been prepared under the historical cost convention. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2021, which have been prepared in accordance with IFRSs as adopted by the EU.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2021, as described in those annual financial statements

As at 30 June 2022, the Group's current liabilities exceeded its current assets by €2.1 million. However, the Group envisages that a significant level of earnings will be generated throughout the forthcoming financial year, which will enable the Group to manage effectively its forecasted cash flows and liquidity needs.

Impact of COVID-19 and the conflict in Ukraine

The pandemic continues to pose a risk to the health and safety of the Group's employees; with the threat of another outbreak potentially disrupting normal business operations. Such risks are additional to the economic impact on the Group's customers as a result of the pandemic, and the duration and extent of recovery from the same. Nonetheless, the Group continued to successfully manage the situation and no significant impact on its operations was registered.

However COVID-19 still continues to have a huge impact on global business. Shipping costs have soared and supplier delays have become routine, with a consequent impact on higher costs and increased inflation. This impact could be further exacerbated by the current geo-political situation in respect of the conflict in Ukraine. The Group is aware that these conditions may potentially affect projected revenues under specific scenarios, customers may delay planned projects to adjust to new pricing and hardware deals may be considerably delayed until they are fulfilled and effectively invoiced.

Condensed Consolidated Interim Financial Statements Notes to the Condensed Consolidated Interim Financial Statements

For the period 1 January 2022 to 30 June 2022

2. Basis of preparation – continued

Impact of COVID-19 and the conflict in Ukraine - continued

Despite the challenges, the Group has successfully managed to mitigate any significant impact on its operations and performance to date, taking cognisance of the Group's financial results for the six month period ended 30 June 2022. In this regard and as detailed further in Note 3, the directors are of the opinion that there are no impairment indicators in respect of the Group's principal non-current assets, including its intangible assets. Also, the creditworthiness of the Group's customers has not deteriorated and therefore it was not deemed necessary to revise the expected credit loss assessment for the Group's receivables. The directors continue to adopt the going concern assumption in the preparation of the Group's financial statements. The directors firmly believe that there is no material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern.

(a) New and amended standards adopted by the Group

A number of amended standards became applicable for the Group's current reporting period. In the opinion of the Directors, there are no material impacts upon the adoption of these revisions on the Group's accounting policies and on the Group's registered financial results, financial position and cash flows.

(b) Impact of standards issued but not yet applied by the Group

Certain amendments and interpretations to existing standards have been published by the date of authorisation for issue of these financial statements but are mandatory for the Group's accounting periods beginning after 1 January 2022. The Group has not early adopted these revisions to the requirements of IFRSs as adopted by the EU, and the Company's Directors are of the opinion that there are no requirements that will have a possible significant impact on the Group's financial statements in the period of initial application.

3. Fair values of financial and non-financial instruments

Financial instruments

The Group is required to disclose fair value measurements by level of a fair value measurement hierarchy for financial instruments (Level 1, 2 or 3). The different levels of the fair value hierarchy are defined as fair value measurements using:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
• Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly i.e. as prices, or indirectly i.e. derived from prices (Level 2).
• Inputs for the asset or liability that are not based on observable market data i.e. unobservable inputs (Level 3).

At 30 June 2022 and 31 December 2021, the carrying amounts of certain financial instruments not carried at fair value, principally comprising cash at bank, receivables, payables and accrued expenses, reflected in the financial statements are reasonable estimates of fair value in view of the nature of these instruments or the relatively short period of time between the origination of the instruments and their expected realisation.

Condensed Consolidated Interim Financial Statements Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2022 to 30 June 2022

3. Fair values of financial and non-financial instruments - continued

Financial instruments - continued

The fair value of non-current financial instruments, including borrowings and lease liabilities, is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. The estimated fair values, deemed to be Level 2 estimates, fairly approximate the carrying amounts of such financial instruments.

Non-financial instruments

Assessment of the carrying amount of intangible assets

The Group's intangible assets mainly consist of goodwill arising on acquisitions effected in previous years reflecting the excess of the purchase price over the fair value of net assets acquired allocated to the identifiable assets and liabilities of the acquired entity.

The recoverable amount of the cash-generating unit (CGU), to which the Group's intangible assets were allocated, as at 30 June 2022 was determined based on value in use (VIU) calculations consistent with the methods used as at 31 December 2021 (for further details refer to Note 7 of the 2021 annual report). Following the challenges referred to previously, market conditions have affected business confidence and spending patterns. In the circumstances, management determined the deterioration in performance or long-term growth rates which would need to occur, or the increase in discount rate which would need to be applied to the model, that may lead to impairment of goodwill. The VIU of the CGU, as a result of this assessment, remains in excess of the carrying amounts by a comfortable headroom.

Fair valuation of land and buildings

The Group's property comprises property currently being used by the Group to host one of its data centres acquired during the financial year ended 31 December 2020, for a consideration of €4,000,000.

The Group is required to analyse non-financial assets carried at fair value by level of the fair value hierarchy within which the recurring fair value measurements are categorised in their entirety (Level 1, 2 or 3), as described within this Note for financial instruments.

The recurring property fair value measurements at 31 December 2020 and 31 December 2021 use significant unobservable inputs and are accordingly categorised within Level 3 of the fair valuation hierarchy.

In the opinion of the directors, as at 30 June 2022, no significant changes or developments have been experienced since the acquisition that impacted the property's fair value by giving rise to a material shift in its estimated market value.

Condensed Consolidated Interim Financial Statements Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2022 to 30 June 2022

4. Segment Information

4.1 Operating segments

The Group's internal reporting organisation and structure is such that its services within the Data Centre Services business line are treated as one business segment taking cognisance of segment technology, market dynamics and consumer demand. The operations within the Data Centre Services comprise the Group's data centre facilities and provision of ICT solutions in Malta.

Cash flows generated and returns secured from the different services are significantly interdependent, also in the context of commonality of risks to which the Group is exposed as a result of the provision of these services and in the context of commonality of customer base. Management of these service lines has been adapted to reflect the factors mentioned above, with a view to achieving synergies and to approach the business market in a manner focusing on the evolution of customer demands.

The Group's internal reporting to the Board of Directors and Senior Management is analysed accordingly, and the Board of Directors reviews internal management reports at least on a monthly basis.

4.2 Information about geographical segments

The Group's revenues are derived predominantly from operations carried out in Malta. However, it also derives revenue from companies operating outside of Malta. Considering the nature of the Group's activities, its non-current assets are predominantly located in Malta.

5. Property, plant and equipment

a) Acquisitions and disposals

During the six months ended 30 June 2022, the Group acquired property, plant and equipment with a cost of €533k (six months ended 30 June 2021: €1.4million), which includes the cost of leased equipment and non-recurring capital expenditure.

b) Capital commitments

The following are capital commitments for the Group:

	As at	As at
	30 June	31 December
	2022	2021
	Unaudited	Audited
	€'000	€'000
Capital expenditure commitments
Authorised and contracted for	-	207

Condensed Consolidated Interim Financial Statements Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2022 to 30 June 2022

6. Dividends

A dividend in respect of the year ended 31 December 2021 of €0.025 (2020: €0.0292) per share, amounting to €5,083,775, was declared and paid during the period ended 30 June 2022.

7. Earnings per share

Earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

	Six months ended 30 June 2022 Unaudited	Six months ended 30 June 2021 Unaudited
Profit attributable to equity holders of the Company (€'000)	2,642	2,749
Weighted average number of shares in issue (thousands)	203,595	203,595
Earnings per share (€)	0.013	0.014

The Company has no instruments or arrangements which give rise to potential ordinary shares and accordingly diluted earnings per share is equivalent to basic earnings per share.

8. Contingencies

(a) At the end of the reporting period, the Group had a contingent liability arising from an overseas court judgement requiring that a Group company implements measures to prevent a specific client from providing certain services. The company was ordered to pay for the costs of the court proceedings and to pay a fine of €100,000 per day subsequent to service of the said judgement, unless and until the company complies with it. On the basis of legal advice obtained by the Group, the company has not yet been correctly served with the judgement and, additionally, the judgement can be enforced in Malta only in the event that it is declared enforceable by the Courts in Malta. This legal advice obtained by the Group highlights serious doubts on the enforceability of the overseas court judgement in Malta and accordingly no provision has been recognised as the Directors are of the opinion that a cash outflow is not probable.

Another overseas court proceeding has been instituted against the same Group company with respect to similar claims in relation to services provided to another client. Until the date of authorisation for issue of these financial statements, no judgement has been delivered by the court. No provision for expected losses was deemed necessary by the Directors as at the end of the reporting period taking cognisance of legal advice received.

Condensed Consolidated Interim Financial Statements Notes to the Condensed Consolidated Interim Financial Statements

For the period 1 January 2022 to 30 June 2022

9. Related party transactions

The Company and its subsidiaries have a related party relationship with Société Nationale des Télécommunications (Tunisie Telecom), the Company's ultimate parent, related entities ultimately controlled by Tunisie Telecom, together with the Company's Directors (key management personnel). The Company's immediate parent, GO p.l.c. (GO), is controlled by Tunisie Telecom. Dubai Holding LLC (GO's former ultimate parent) and all entities ultimately controlled by it are also considered to be related parties, in view of Dubai Holding LLC's interest in and significant influence on Tunisie Telecom. The following transactions were carried out with related parties:

	Six months	Six months
	ended	ended
	30 June	30 June
	2022	2021
	Unaudited	Unaudited
	€'000	€'000
Transactions with immediate parent
Dividends paid to immediate parent	2,593	3,034
Services provided to immediate parent	451	899
Services provided by immediate parent	717	1,195

The Group has not entered into material transactions with key management personnel which would warrant disclosure thereof for the purpose of understanding the Group's financial results or its financial position. Also, the Group has not entered into material transactions with entities in which the Group's key management personnel directly or indirectly have an interest or over which they have direct or indirect influence. Any such transactions would constitute normal operating transactions under normal market and commercial terms relating to provision of operational services by the Group, and would not comprise financing transactions.

Condensed Consolidated Interim Financial Statements Statement pursuant to Listing Rule 5.75.3

For the period 1 January 2022 to 30 June 2022

I hereby confirm that to the best of my knowledge:

the condensed consolidated interim financial statements give a true and fair view of the financial position of the Group as at 30 June 2022, and of its financial performance and cash flows for the six-month period then ended in accordance with International Financial Reporting Standards as adopted by the EU applicable to interim financial reporting (International Accounting Standard 34, 'Interim Financial Reporting');

the Interim Directors' report includes a fair review of the information required in terms of Listing Rules 5.81 to 5.84.

Dr. Arthur Galea Salomone

Director

5 August 2022

Independent auditor's report

To the Board of Directors of BMIT Technologies p.l.c. Report on Review of Condensed Consolidated Interim Financial Statements

Introduction

We have reviewed the accompanying condensed consolidated interim statement of financial position of BMIT Technologies p.l.c. and its subsidiaries (the Group) as at 30 June 2022, the related condensed consolidated statements of comprehensive income, changes in equity and cash flows for the six-month period then ended and other explanatory notes ('the condensed consolidated interim financial statements'). The directors are responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU applicable to interim financial reporting (International Accounting Standard 34 'Interim Financial Reporting'). Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 'Interim Financial Reporting'.

PricewaterhouseCoopers

78 Mill Street Zone 5, Central Business District Qormi Malta

Fabio Axisa Partner

5 August 2022

a) The maintenance and integrity of the BMIT Technologies p.l.c. website is the responsibility of the Directors of the Company; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the condensed consolidated interim financial information since this was initially presented on the website.

b) Legislation in Malta governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.