COVID-19 had differing effects on Maps' business, driving acceleration in digital transformation and even more so in the Healthcare sector, which relied on Maps' healthcare offer that registered 21% growth in 1H20. On the other hand, the postponement of some projects slowed

down the Large Enterprise division. Looking at company structure, Maps acquired 20% of Maps Healthcare for €1.7mn, anticipating the deal closing (from 2022) and thus saving ca. €0.5mn.

1H20 Results. Maps reached €8.5mn of revenues (€9.0mn in 1H19), growing on subscription revenues – mainly thanks to the Healthcare division – reaching €2.3mn (+26% YoY) - 27% of total revenues (vs 20% of 1H19). Maps maintained a stable EBITDA margin of ca. 19% reaching €1.6mn. The high D&A, associated with strong investments and prudent accounting methods, drove EBIT to €0.1mn (€1.1mn in 1H19). The savings registered on Maps' healthcare deal contributed positively to both net income (at €0.4mn in 1H20) and NFP (€4.8mn at the end of 1H20 compared to €4.5mn at the end of 2019). NFP has been also affected by the IFRS 16 accounting effects (by €1.6mn).

A highly synergic M&A in the Healthcare sector. On September 16, the company signed an agreement for the acquisition of SCS Computers for €4.2mn. SCS, with 2019 revenues of €1.6mn, an EBITDA margin of 34% and net cash of €0.5mn, is a healthcare software house offering proprietary solutions.

Revised Estimates. On the back of the lower than expected 1H20 profitability and SCS acquisition, we update our forecast as follows: we reduced expected 2020 profitability (-8% on EBITDA and -36% on net income) while increasing our estimates on Revenues (+6%) and EBITDA (+9%) for the following years.

Valuation. In our valuation we factored in the recent updates and the M&A clos expected in 4Q20. We therefore obtained a fair value – coming from our DCF and Multiple Valuation - of €36.7mn or €3.99ps (against our previous fair value of €31.6mn or €3.46ps), resulting in an upside of 108% on the current market price of €1.91ps.