Chairman's Statement

Dear Shareholders,

Over the last few years we have been taking a number of changes in the organizational structure and operating model of our Group with investment in key areas, so as to obtain a rationalization of operating and structure costs.

The year of 2018 therefore reflects the continued good operating performance of the Reditus Group, which shows a significant improvement over 2017.

The success of the strategy implemented by the Group, with its internal reorganization and focus on core activities, betting on innovative and higher value-added offers, together with the ongoing concern to rationalize operating and structure costs, allowed for greater business profitability, explaining the positive evolution of the results.

The operational indicators of the Reditus Group registered a remarkable evolution compared to the previous period, as evidenced by the positive variation in the EBITDA margin. In 2018, Reditus's EBITDA reached 4.5 million euros, corresponding to a margin of 13.9%, 2.3 percentage points higher than the value registered in 2017 and reflects a sustained growth in the profitability of the Group's operations, with growth more than 100% of this ratio in the last 2 years.

Notwithstanding the improvement in the profitability of operations, the net result was negative at 3.8 million euros. This result was influenced by non-recurring factors, such as provisions and impairment losses amounting to Euro 1,5 million and Net Present Value of amounts receivable from customers amounting to Euro 0.849 million.

Operating Income amounted to 32.4 million euros, 22.8% down on the same period last year. A contraction caused by the loss of important projects resulting from the international alignment of suppliers by our customers, which we have been replacing with smaller ones, but also by the strategic decision to develop new projects with higher profitability ratios which allowed us to reduce operating expenses by 8.2 million euros.

In addition to these organizational and operational measures, in July 2018, Reditus' share capital was unanimously approved at a shareholders' meeting. An operation that allowed us to improve the company's equity position, strengthen its positive net position and its balance sheet, reflecting this improvement in greater stability for operations.

The aim was to adjust the company's share capital in order to absorb past accumulated losses. The coverage of the share capital by equity now reaches about 200%, a situation that gives total comfort to the company.

These are important measures for a company that, like ours, intends to take advantage of all the opportunities offered by the market. Both the IT market and the Contact Center and BPO market, according to the various market analysts, show expected growth rates above 4.5%, even rising above 12% in some segments.

In fact, despite the stagnation of some business segments, namely those related to more traditional IT markets, technologies associated with the third platform (cloud, mobility, social business and big data) and the market for enterprise innovation accelerators (IoT - Internet of Things, Robotics, 3D Printing, among others) will present very interesting business opportunities by representing more than 50% of technology spending in Portugal by 2020.

We believe that this process of transformation of the organizations will open great opportunities for Reditus, so we are working hard in the restructuring of the company so that we can take advantage of all the opportunities that the market presents to us.

We would like to thank our shareholders and employees. We are sure that an important part of the success of our project is only possible thanks to the support we have had from our shareholders and the commitment of a team of professionals of excellence who daily give their best to the service of Reditus.

It has been hard work but equally motivating, not only for the challenges we have faced, but above all for the will to build a project with a future, innovative and ambitious.


Chairman of the Board of Directors