Civitanavi S p A : The Board Of Directors approves the draft of financial statements as of December 31st 2021

PRESS RELEASE

CIVITANAVI SYSTEMS S.P.A.:

THE BOARD OF DIRECTORS APPROVES THE DRAFT OF FINANCIAL

STATEMENTS AS OF DECEMBER 31st 2021

The 2021 results confirm expectations in terms of Total Revenues at EUR 25.1

million (+31%) and EBITDA at EUR 7.8 million (+55%)

Booking reached a record value of EUR 29.8 million

• Total revenues: EUR 25.1 million, +31% compared to EUR 19.1 million as of December 31st 2020
• EBITDA: EUR 7.8 million, +55% compared to EUR 5.0 million as of December 31st 2020
• EBIT: EUR 6.7 million compared to EUR 4.0 million as of December 31st 2020
• Comprehensive income for the year: EUR 4.9 million compared to EUR 5.9 million as of December 31st 2020
• Net financial debt: EUR 2.9 million compared to EUR 1.3 million as of December 31st 2020
• Booking (orders from customers acquired): EUR 29.8 million compared to EUR 18.1 million as of December 31st 2020, a record year in terms of purchase orders

Pedaso (FM), March 24th 2022 - The Board of Directors of Civitanavi Systems S.p.A. ("Civitanavi" or the "Company"), which met today, announces that it has approved the draft of Financial Statements for the year ended 31 December 2021.

"The results achieved confirm a solid and stable growth, strengthening our position in the inertial stabilization and navigation systems sector at a global level" - commented Andrea Pizzarulli, CEO of Civitanavi Systems - "The expectations fulfilled in terms of increase in Total Revenues and EBITDA compared to 2020 confirm what was communicated during the IPO. The positive trend is supported by the investments aiming at expanding production capacity and consolidating our relationships with international strategic players. All this reinforces our confidence for 2022, despite the current situation of general uncertainty, also by virtue of the solidity of our supply chain and the broad geographical diversification of our customer portfolio. We will continue to work at a fast pace to drive growth with a view to creating value for our customers and shareholders, through continuous innovation and the entrepreneurial spirit that has always characterised us".

Civitanavi has grown steadily since its inception, both in terms of turnover and profitability. Similarly, to the 2020 financial year, the financial statements for the year

Civitanavi Systems S.p.A.

Headquarter Via del Progresso 5, 63827 Pedaso (FM) - ITALY

Rome Office Via Pontina Vecchia km 34, 00040 Ardea (RM) - Naples Office Via G. Pascoli, 7, 80026 Casoria (NA) - ITALY VAT n. IT01795210432 | Phone [phone] - Fax [phone]

Email [e-mail] | Pec [e-mail] www.civitanavi.com

ended the 31st of December 2021 closed positively, with an increase in turnover and market share despite the impact of the pandemic and particularly restrictions on mobility that reduced the direct contact with potential customers affecting the development on new business.

Main results as of 31st December 2021

Civitanavi Systems confirms its strong growth trend, with total Revenues as of 31st December 2021 of EUR 25.1 million, compared to EUR 19.1 million as of 31st December 2020, an increase of 31%.

These results are in line with the trend of the order book in recent years. During the three- year period 2018-2020, the Company's Booking (orders from customers acquired within a financial year) amounted to EUR 13.9 million, EUR 13.5 million and EUR 18.1 million, respectively. As of December 31st 2021, the Booking amounted to a record EUR 29.8 million.

The table shows the growth trend of the booking and its % of total revenue in millions of euros.

EUR million	2018	2019	2020	2021
Booking	13.9	13.5	18.1	29.8
% Total Revenues	132%	78%	95%	119%

As of December 31st 2021, the value of the contracts and purchase orders for products already confirmed between the Company and its customers, net of the value of the revenues already recorded as of the same date (except in the event of reduction, suspension or termination) amounted to a total amount of EUR 18.6 million ("Hard Backlog"). This backlog mainly relates to the "Aerospace and Defence" division, while the "Industrial" division has a short-term lead time and is realised, on average, within three months from the signing of the order.

The Company recorded a solid performance in all business divisions, consolidating its position in the Aerospace and Defence sector (64% of total operating revenues 2021 net of change in inventories of finished and semi-finished products) and in the Industrial division (36% of total operating revenues 2021 net of change in inventories of finished and semi-finished products). Civitanavi confirms its growth path in all sectors of its

Civitanavi Systems S.p.A.

Headquarter Via del Progresso 5, 63827 Pedaso (FM)

Rome Office Via Pontina Vecchia km 34, 00040 Ardea (RM) - Naples Office Via G. Pascoli, 7, 80026 Casoria (NA) - ITALY VAT n. IT01795210432 | Phone [phone] - Fax [phone]

Email [e-mail] | Pec [e-mail] www.civitanavi.com

business, with total operating revenues of EUR 25.0 million as of December 31st 2021 compared to EUR 18.3 million as of December 31st 2020, an increase of 37%.

				As of			%			As of			% on
	Thousands of EUR			December			on			December
									2020
				31st 2021			2021			31st 2020
Aeronautics	6,781		28%		1,177		7%
Terrestrial	1,052		4%		2,028		11%
Space	3,411		14%		4,809		26%
Other (Naval, Submarine, Guidance)	4,048		17%		3,528		19%
Total Aerospace and Defence	15,292		64%		11,542		63%
Industrial	8,572		35%		6,696		37%
Other	147		1%		11		0%
Total operating revenues net of change	24,011		100%		18,249		100%
Finished and semi-finished goods inventories	987					39
Change in inventories of finished and semi-finished products	24,998					18,288

During the year, Civitanavi strengthened its presence in the main international markets, ensuring the geographical diversification of its customer portfolio. Furthermore, the Company has no commercial relations in Russia, Belarus and Ukraine.

In Italy, revenues amounted to EUR 5.7 million as of December 31st 2021, up 128% YoY from EUR 2.5 million in 2020, strengthening the presence in the country.

In the EMEA area (excluding Italy), revenues amounted to EUR 8.9 million as of December 31st 2021, compared to EUR 10.0 million last year, achieving the objective of territorial diversification.

With reference to the APAC area, revenues amounted to EUR 7.7 million as of December 31st 2021, compared to EUR 4.9 million as of December 31st 2020. The increase is mainly due to the Australian market, as reference customers are international groups with worldwide distribution.

The US market recorded results of EUR 1.8 million, +126% YoY compared to EUR 0.8 million in 2020.

Civitanavi Systems S.p.A.

Headquarter Via del Progresso 5, 63827 Pedaso (FM)

Rome Office Via Pontina Vecchia km 34, 00040 Ardea (RM) - Naples Office Via G. Pascoli, 7, 80026 Casoria (NA) - ITALY VAT n. IT01795210432 | Phone [phone] - Fax [phone]

Email [e-mail] | Pec [e-mail] www.civitanavi.com

			As of		% on		As of		% on
	Thousands of EUR		December			December
			2021			2020
			31st 2021				31st 2021
Italy	5,701	24%	2,499	14%
EMEA (Excluding Italy)	8,881	37%	10,036	55%
APAC	7,655	32%	4,882	27%
US	1,774	7%	786	4%
Rest of the World	0	0%	46	0%
Total operating revenue net of change	24,011	100%	18,249	100%
inventories
Change in inventories of finished and semi-finished goods	987			39
Operating Revenue	24,998			18,288

Other indicators

EBITDA as of December 31st 2021 amounted to EUR 7.7 million, up from EUR 5 million in 2020, representing a margin expansion from 26% of total revenue up to 31%. It should be noted that the Company capitalised development costs of €0.8 million in the 2021 financial statements.

The Adjusted EBITDA Margin for the year 2021 is 32%, down from the Adjusted EBITDA Margin for the year 2020 (of approximately 35.6%). Adjusted EBITDA for the year 2021 was EUR 0.8, milion up approximately EUR 0.2 milion (with an estimated percentage increase of approximately 17%) compared to Adjusted EBITDA for the year 2020 (equal to approximately EUR 0.7milion). The increase in absolute terms is substantially due to the estimated growth in Total Revenues, while the decrease in percentage terms is mainly due to the greater weight in 2021, compared to the previous year, of the sale of a significant amount of components and semi-finished products at cost price, by virtue of a broader commercial agreement signed during the 2017 financial year with a leading customer in the Aerospace and Defence business sector. The components and semi-finished products, once assembled by the customer, will then allow the Company to receive royalties associated with the sale of the finished product, starting from the financial year 2022, as provided for by the abovementioned commercial agreement, since they are subject to a know-how licence by the Company.

EBIT as of December 31st 2021 was EUR 6.7 million compared to EUR 4.0 million as of December 31st 2020. The increase is mainly attributable to the increase in EBITDA, while depreciation and amortisation tended to be in line with the same period last year.

Civitanavi Systems S.p.A.

Headquarter Via del Progresso 5, 63827 Pedaso (FM)

Rome Office Via Pontina Vecchia km 34, 00040 Ardea (RM) - Naples Office Via G. Pascoli, 7, 80026 Casoria (NA) - ITALY VAT n. IT01795210432 | Phone [phone] - Fax [phone]

Email [e-mail] | Pec [e-mail] www.civitanavi.com

Total profit for the year reached EUR 4.9 million, compared to EUR 5.9 million in the previous year. The reduction in comprehensive income for the year is attributable merely to the tax effect of the recognition of deferred tax assets in 2020, following the tax revaluation; as proof of this, the pre-tax result for 2021 is significantly higher than 2020. It should be noted that in 2020, "Income taxes" included the recognition of deferred tax assets arising from the tax benefit generated by the revaluation pursuant to the provisions of Article 110 of Decree-Law 104/2020 (converted with amendments into Law 126/2020) which occurred in the financial statements as of December 31st 2020 approved in accordance with national accounting standards and subject to "derecognition" upon the first adoption of EU-IFRS.

Net financial debt amounted to EUR 2.9 million, increasing from EUR 1.3 million as of December 31st 2020, mainly due to the cash absorbed by operating and investing activities during the year, and is mainly attributable to the following factors:

1. the increase in inventories related to semi-finished products and raw materials in order to be able to meet production needs, and to the payment of advances made in 2021 relating to sales finalised in 2022, as well as in relation to the growth in the company's business volume;
2. the increase in trade receivables caused by shipments/sales made in the fourth quarter of 2021 compared to the same quarter of 2020, as well as in relation to the growth in the company's business volume;
3. the increase in contract work in progress (Assets for contract work in progress net of Advances for contract work in progress), due to the progress of the contracts and the contractually agreed advances;
4. the increase recorded in other current assets net of current liabilities mainly due to the significant tax credit generated following the supplementary tax returns. It should also be noted that in 2021 the costs related to the stock exchange listing (in accordance with IAS 32) finalised on 17 February 2022 were suspended under other assets.

Capital expenditure related to property, plant and equipment for the year ended as of December 31st 2021, amounted to EUR 0.5 million and mainly related to the purchase of production machinery and equipment for the expansion of the production capacity. Overall, these investments were aimed at increasing the company's production capacity. Investments in intangible assets mainly related to development activities carried out in 2021, amounting to EUR 0.8 million.

Civitanavi Systems S.p.A.

Headquarter Via del Progresso 5, 63827 Pedaso (FM)

Rome Office Via Pontina Vecchia km 34, 00040 Ardea (RM) - Naples Office Via G. Pascoli, 7, 80026 Casoria (NA) - ITALY VAT n. IT01795210432 | Phone [phone] - Fax [phone]

Email [e-mail] | Pec [e-mail] www.civitanavi.com