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Ad hoc announcement pursuant to Art. 53 LR

Sales and profitability increased again
Datacolor AG continued to show sales and operating earnings growth in the first half of fiscal 2022/23 despite the challenging market environment driven by inflation as well as global political and financial uncertainty. Net sales increased by 7.4% (13.1% in local currency) to USD 45.4 million (previous year: USD 42.3 million). The gross margin was stable at 65.6% (65.5%) despite substantially higher material costs. Datacolor achieved an operating profit (EBIT) of USD 4.9 million (USD 3.8 million) in the period under review. Operating profitability was further improved with an EBITDA margin of 12.8% (11.0%) and an EBIT margin of 10.8% (9.0%). Due to the upward trend of the global stock markets, Datacolor posted a positive financial result of USD 2.6 million (USD -1.4 million) in the period under review. As a result, net profit increased to a total of USD 6.2 million (USD 1.9 million), while earnings per share amounted to USD 38.36 (USD 11.71). At the end of the reporting period, Datacolor had total assets of USD 85.7 million (September 30, 2022: USD 81.3 million) and substantial net cash including financial assets of USD 44.7 million (September 30, 2022: USD 43.7 million). Datacolor remains debt-free and has a solid equity ratio of 61.4% (September 30, 2022: 58.8%). The average number of employees increased to 408 (385) in the first half of 2022/23 due to sales growth.

Growth driven by sales in Asia and Europe
The solid results in the period under review were driven by a strong order book for hard and software products that allow digitalization of color workflows across a wide range of industries. Asia remained the largest market, accounting for 44% (41.7%) of total sales. Europe corresponded to 31.3% (31.2%) of sales, and North and South America represented 24.7% (27.1%) of sales.

New products propel business
Datacolor again invested heavily in the further development of its innovative product range for the industrial and consumer markets. During the period under review, the focus was on the latest generation of its Spectro 1000/700 product family, a high-end spectrophotometer designed for high efficiency and confidence in color formulation and quality control, mainly in the textiles, plastics, paints and coatings sectors, featuring Internet connectivity for remote services. Demand was also very pleasing for the ColorReader EZ, a portable measuring device that allows “Do It Yourselfers” to easily match a measured color to international color standards. Datacolor also launched Spyder Checkr Photo, a small and handy color reference tool for photographers that provides a fast and easy way to ensure accurate and consistent color of images on monitors and printers. During the coming months Datacolor plans to launch several new hardware and software products including innovative features reaching an even wider range of industrial customers and consumers.

Outlook
Datacolor's Board of Directors and Executive Committee expect sales in the second half of fiscal 2022/23 to increase moderately and the operating result to remain at around the same level as in the first half of the year under review, despite global economic and geopolitical uncertainty. With its successful color management solutions for customers in the industrial and consumer markets, as well as continued high investments in research and development and continued innovation of products, Datacolor continues to aim in fiscal 2022/23 to exceed the previous year's sales and to maintain or slightly increase operating profit, provided that no disruptive events for the global economy occur. With substantial net liquidity including financial assets and a solid shareholders' equity, Datacolor is well prepared to expand its market position with organic growth as well as acquisitions that complement its business activities.

Rotkreuz, May 5, 2023

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About Datacolor
Datacolor, a global leader in color management solutions, provides software, instruments and services to assure accurate color of materials, products and images. The world's leading brands, manufacturers and creative professionals have used Datacolor's innovative solutions to consistently achieve the right color for over 50 years. The company provides sales, service and support in over 100 countries throughout Europe, the Americas and Asia. Industries served include textile and apparel, paint and coatings, automotive, plastics, photography and videography. For more information visit www.datacolor.com.