Datalex Plc — Earnings Release 2018

Feb 14, 2019

2019 & 2020 GUIDANCE UPDATE

Dublin, Ireland – 14 February 2019: Datalex plc (Euronext Dublin: DLE), a leading provider of digital commerce solutions to global travel retailers, today issues the following statement regarding 2019 and 2020 guidance.

2019 and 2020 Guidance

Datalex announced on 15 January 2019 that it expects to report an adjusted EBITDA loss in the range of -\$4m to -\$1m for FY 2018. The Group's results for FY 2018 remain to be audited.

The Board has reviewed its FY 2019 guidance and now expects to report adjusted EBITDA in the range of \$3m to \$3.5m for FY 2019.

The Group's performance in 2018 was materially behind expectations. The Group encountered significant difficulties in a number of areas relating to its services business including incurring exceptional delivery costs that are unlikely to be recovered and operating inefficiencies that are currently being addressed.

As a result, 2019 will represent a year of transition for Datalex.

The Group anticipates a strong recovery in services revenue in 2019 notwithstanding a continued anticipated shortfall in services revenue compared to deployment costs incurred.

Given the Group's high relative cost base entering 2019, caused by the rapid growth of the business in recent years and significant investment in its digital commerce platform, the Group is undertaking a cost restructuring program which will impact outsourced contractors and employees. This process is underway and will be completed during H1 2019. It is expected that the program will deliver cost savings in the range of \$8m to \$8.5m in FY 2019. The Group expects to incur once-off program implementation costs in 2019 of less than \$2m. From 2020, the Group expects to generate annualised cost savings in the range of \$9.5m to \$10m.

The Group anticipates a significant reduction in capital expenditure in 2019 reflecting the maturity level of the Group's digital commerce platform.

The Board remains confident in the future of the business and expects to report adjusted EBITDA for FY 2020 in the range of \$12m to \$13.5m. This revised guidance assumes, amongst other matters:

• A full-year's impact of the cost restructuring program
• Completion, by early 2020, of significant customer deployments, partially offset by the nonrenewal of an existing Latin American airline customer contract with effect from February 2020
• Significant platform revenue growth arising from new customer deployments

The Board does not intend to propose a dividend payment in 2019.

The independent review referred to in the trading statement of 15 January is underway by PwC and a further statement will be made as appropriate.

Commenting today, Aidan Brogan, CEO of Datalex said: "2018 was a challenging year for our business following a period of rapid expansion and accelerated product investment. A thorough evaluation has highlighted the need for a strategic restructuring of the business which will reduce our cost base while also ensuring that there will be no delay in preparing new customers for deployment to our platform. Our customers have responded supportively to the current challenges and we are grateful for that support. We have a solid pipeline of customers that will transfer to our platform over the course of 2019 and will have a significant positive impact on our revenue and EBITDA from 2020. As a recognised travel industry leader in digital commerce with a large and growing market opportunity, we acknowledge that 2019 will be a year of transition but we remain confident in the future growth of the business."

-ENDS-

Investor Enquiries – Datalex Aidan Brogan, CEO, aidan.brogan@datalex.com Tel: +353 1 806 3500 Dónal Rooney, CFO, donal.rooney@datalex.com

Media Enquiries - Fleishman Hillard

James Dunny, james.dunny@fleishmaneurope.com Tel: +353 86 388 3903

This announcement contains inside information.

This announcement contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this announcement. Datalex undertakes no obligation to update any forward-looking statements. No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per share for the current or future financial years would necessarily match or exceed the historical published earnings per share.

Statements contained in this announcement are based on the knowledge and information available to the Board at the date it was prepared and therefore facts stated and views expressed may change after that date.

The financial information in this announcement is not audited and does not constitute statutory financial statements of Datalex plc. The statutory financial statements for FY 2018 will be prepared in accordance with International Financial Reporting Standard 15 "Revenue from contracts with customers" (IFRS 15) which came into effect on 1 January 2018. The main impact of the new standard relates to the timing of when revenue and costs are recognised during a customer contract (in particular on new deployments). The guidance outlined above for FY2018, FY 2019 and FY 2020 is before any impact from IFRS 15. The results to be reported for FY2018 will clearly identify any such impact and, at the same time, the IFRS 15 impact on FY 2019 and FY 2020 guidance will be identified.

Nothing in this announcement is intended to constitute an invitation or inducement to engage in investment activity. This announcement does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This announcement does not constitute a recommendation regarding any securities.