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SES-imagotag refutes in the strongest possible terms each of the allegations made against it in the report produced by Gotham City Research on Thursday, June 22, 2023, under the title “SES-imagotag: The Circular Dance with a Chinese Twirl.”

The present document provides factual, precise, and verifiable answers which shed light on the errors contained in the report. The fraud that is alluded to in the report does not exist; there is no double counting of circular revenues with BOE; the consolidation of the Group's subsidiaries and parent company's revenues is consistent with the consolidated revenue, which is generated exclusively by sales to external customers. The capitalization of SES-imagotag's R&D investments is compliant with IFRS accounting standards. Consequently, there is no over-statement of the company's revenue or profit.SES-imagotag faces this new chapter calmly, true to its approach which emphasizes transparency and respect for rules and standards. But the company is also conscious of the gravity of the consequences of such a maneuver for the entirety of its ecosystem: employees, customers, partners, and shareholders. That is why SES-imagotag reserves the possibility to exercise all rights for future legal action if need be.

SES-imagotag is a fast-growing, innovative company, and the world leader of a sector which is developing rapidly. 2023 represents a new year of growth and improving profitability.Hereunder, the Group presents the following clarifications and denials set out in this document which address in detail the topics listed below:

1. The consolidation of the revenues of the subsidiaries and the parent company (forgotten in the Gotham City report), which is an operating company, net of intercompany flows, is equal to the consolidated Group revenue.
2. Sales of components to BOE are neutralized in consolidation and do not enter into the revenues of the Group. Therefore, there is no round-trip double-counting between SES-imagotag and BOE. The Group revenue is only generated with external customers.
3. The consolidation of the subsidiary in China (the “JV”), which was majority-owned and controlled by the Group until September 2022, is compliant with IFRS accounting standards.
4. Capitalized expenses are consistent with R&D and IP investments and compliant with IFRS accounting standards.
5. Financial statements are not misstated. Revenue and EBITDA are not overstated.
6. The relationship with BOE is performed at arm's length basis and subject to strict governance and supervision rules.
7. SES-imagotag follows a strict multi-sourcing policy. Purchase prices from BOE have not evolved differently than from other EMS.
8. SES-imagotag does never present itself as a « SaaS company » but as the leading Retail IoT platform, with a large majority (85%) of its revenues coming from ESL hardware, and 15% of its revenues comes from “Software, services and non-ESL solutions (VAS)”.