Hybrid Software Group PLC

Q1 revenue up 12% over last year

PRESS RELEASE - REGULATED INFORMATION

HYBRID SOFTWARE GROUP Q1 REVENUE UP 12% OVER LAST YEAR

Cambridge (UK) 04 May 2023 (08.00 CEST) – Hybrid Software Group PLC (Euronext: HYSG) provides a trading update for the three months ended 31 March 2023.

CEO Mike Rottenborn comments, “The first quarter of 2023 saw recovering sales in the Printing Software segment with the first marquee sale of our new Digital Front End, SmartDFE, which drives digital inkjet presses with excellent print quality and maximum speed. Printhead Solutions revenues significantly recovered year-over-year as the chip shortages which heavily impacted Q1 2022 revenues have abated.

“Group EBITDA was up in Q1 mainly due to increased revenue. In the Printhead Solutions segment, higher input costs resulting from sourcing difficulties and higher component prices in 2022 did weigh on overall margin contribution, which will continue for some time throughout 2023. However, we anticipate higher revenues from the Enterprise Software segment to offset this.

Although business conditions remain challenging, we have a tight control on costs to insure profitable growth now and in the future.”

Financial highlights for the three months ended 31 March 2023

The following information is unaudited.

• Revenue for the period was €13.96 million (2022: €12.45 million)
• EBITDA for the period was €3.25 million, or 23% of revenue (2022: €2.74 million, 22% of revenue)

Segment analysis

The following tables provide unaudited information about revenue from external customers and EBITDA for the Group's operating segments for the current and previous financial years. EBITDA is calculated by adding back interest, tax, depreciation and amortisation to net profit.

For more information about the Group’s operating segments, refer to the annual report for the year ended 31 December 2022, which is available from https://www.hybridsoftware.group/investors/financial-reports.

For the three months ended 31 March 2023:

In millions of euros (unaudited)	Enterprise Software	Printhead Solutions	Printing Software	Group	Total
Revenue from external customers	5.44	2.85	5.67	-	13.96
Segment EBITDA	1.48	0.36	1.70	(0.30)	3.25
as a % of revenue	27%	13%	30%	-	23%

For the three months ended 31 March 2022: