Smartphoto Group N.V. — Earnings Release 2020

Jan 29, 2021

PRESS RELEASE – Regulated information

Wetteren, January 29, 2021 – 5:40 p.m.

Smartphoto group again achieves very strong growth in turnover and profitability

• Revenue showed a double-digit growth of 19.2% from 51.5 million euro in 2019 to 61.4 million euro in 2020.
• Improved marketing efficiency leads to an EBITDA growth of 34.9% from 8.8 million euro in 2019 to 11.9 million euro in 2020.
• Increase in net cash of 5.0 million euro (+ 61.1%) from 8.2 million euro in 2019 to 13.2 million euro in 2020, despite the dividend payment, further purchase of treasury shares and the start-up of the new factory.

Smartphoto group, the innovative e-commerce group in Wetteren, continued its double-digit growth in revenue. With an increase of 9.9 million euro, revenue evolved from 51.5 million euro in 2019 to 61.4 million euro in 2020 (+ 19.2%).

EBITDA grew by 34.9% from 8.8 million euro in 2019 to 11.9 million euro in 2020, i.e. an increase of 3.1 million euro.

The continued focus on expanding our product range of personalized products and gifts, supported by more efficient marketing, leads to this growth in revenue and profitability. Also the launch in the first half year of a super-fast delivery service for a number of products, 'Ordered today, delivered tomorrow', has certainly contributed to this growth. This will be further expanded in 2021.

With the start-up of the new factory in the third quarter, we created more space for our growth. Moreover, this has already led to a number of efficiency improvements in production during the peak season.

Net cash evolved from a cash surplus of 8.2 million euro in 2019 to a cash surplus of 13.2 million euro in 2020, an increase of 5 million euro (+61.1%).

This increase in net cash is the result of, on the one hand, the realized substantial free cash flow from smartphoto's regular activities on an annual basis, and in particular in the second half of 2020, and, on the other hand, the investments in property, plant and equipment and intangible assets, the dividend payment (2.1 million euro) and the purchase of treasury shares (2.8 million euro).

The figures in this press release are based on the preliminary, unaudited figures prepared in accordance with IFRS. The final audited and full year 2020 results will be communicated in the press release of March 4, 2021.

Definitions

EBITDA= Profit/loss (-) from operating activities, adjusted for depreciation, write-offs, impairment, and provisions.

Cash surplus= Net cash= Total cash and cash equivalents less non-current and current interest-bearing financial liabilities and lease obligations.

About smartphoto group

Smartphoto group, the innovative e-commerce group, operates in 12 European countries and primarily targets consumers. The shares of smartphoto group are traded on Euronext Brussels (ISIN BE0974323553, ticker symbol SMAR).

Smartphoto group is active in B2C e-commerce with affordable, high-quality personalized products such as photo books, personalized gifts, cards, calendars, wall decoration and prints.

Financial calendar

March 4, 2021 (1)	before trading hours	Annual results 2020
May 12, 2021	at 2 p.m.	Annual General Meeting of Shareholders
August 25, 2021 (1)	after trading hours	Half-year results and half-yearly financial report for 2021

For additional information, please contact:

Stef De corte*, CEO

smartphoto group NV Kwatrechtsteenweg 160 B- 9230 Wetteren Tel. +32.9.365.99.10 E-mail: maggy.vandenstock@smartphoto.com - Internet: www.smartphotogroup.com

*Permanent representative of Acortis BV

(1) Indicative data

This press release is a free English translation of the official Dutch version.