Abu Dhabi, United Arab Emirates: e7 Group PJSC (“e7” or the “Group”), a leading provider of identity solutions and brand presence enhancement services through its integrated products and solutions, today announced its audited financial results for the three-month and six-month periods ending June 30, 2025 (“Q2 2025” and “H1 2025”).

On this occasion, Eng. Ahmed Al Shamsi, Chairman of e7 Group, said: “We are pleased to announce another successful period in our journey, during which we have made significant progress across all our businesses, driven by our integrated solutions-based approach. Our decision to return AED 800 million of surplus cash to shareholders, along with our commitment to distribute an annual dividend of no less than 10 fils per share for the financial years 2025-2027, is a clear reflection of our long-term vision to create more value and focus on delivering attractive returns to our shareholders. We are pleased to confirm our commitment to our financial guidance set for 2025, driven by the progress achieved so far this year, in addition to completing the first half with a healthy growth rate. We remain focused on evolving the group’s business, strengthening our market share, and expanding our geographic reach, supported by securing new innovative and digital partnerships aimed at enhancing the customer experience and supporting our short- and long-term growth efforts.”

For his part, Esteban Gómez Nadal, CEO of e7 Group, said: “Our financial performance in the first half reflects the resilience and strength of our business model, as we have achieved steady growth and continued to advance our strategic priorities. While our financial results were impacted by interim revenue realization and non-recurring items, we have made significant progress in strengthening our growth pillars for 2025 and beyond. Positive momentum continues across our business, having secured several key contracts and partnerships, strengthened our leadership team with high-level executives, and launched several new and innovative initiatives to drive growth. We remain optimistic about the future of the group as we continue to seize value-adding opportunities in the identity solutions sector, where we currently have an active pipeline, in parallel with our focus on expanding our presence in the UAE and international markets through organic growth.”

The results for the first half of 2025 reflect the interim realization of revenues across the Group’s various business segments and non-recurring items.

Total group revenues for the first half of 2025 reached AED 291.6 million, a 3.1% year-on-year decrease, compared to AED 300.8 million in the first half of the previous year. This slight decrease is primarily attributable to the strong performance in the first half of the previous year, driven by the distribution of revenue across various segments during that period.

Gross profit for the first half of 2025 reached AED 88.0 million, with a profit margin increasing by 80 basis points to 30.2%, compared to 29.4% in the first half of 2024. Gross profit for the second quarter of the year reached AED 62.1 million, with a profit margin of 34.9%, broadly in line with the levels recorded in the second quarter of 2024, which amounted to 34.8%. This is attributed to the Group's efforts and improvements to enhance operational efficiency, despite stable revenues.

Earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 26.6% year-on-year to AED 52.0 million in the first half of 2025, with an EBITDA margin of 17.8% for the same period. The decrease in EBITDA was primarily due to the recording of one-off expenses of AED 8 million during the period, in addition to a year-on-year decline in revenue due to the phased realization of revenue across the Group's business segments, particularly in the Education Solutions segment. EBITDA decreased by 25.8% year-on-year to AED 38.6 million in the second quarter of 2025, compared to AED 51.9 million in the second quarter of 2024, while the EBITDA margin was 21.7% in the second quarter of 2025.

Net profit before tax also decreased by 66.5% to AED 33.6 million in the first half of 2025, compared to AED 100.2 million in the first half of 2024. Net profit before tax for the second quarter of 2025 amounted to AED 12.7 million, compared to AED 71.0 million in the same period of the previous year, mainly due to the revaluation of warranties based on market prices.

Net profit after tax reached AED 30.6 million in the first half of 2025, compared to AED 91.1 million in the first half of the previous year. Net profit after tax for the second quarter of 2025 reached AED 11.6 million, compared to AED 64.5 million in the same period the previous year.

e7 Group has a strong cash position, with cash balances of AED 1,244.4 million, with no outstanding debt as of the end of the first half of 2025.

Continuing to focus on delivering long-term shareholder value and expanding the solutions portfolio

e7 Group affirms its unwavering commitment to achieving sustainable shareholder value over the medium and long term through sustained profitability growth. To this end, the company intends to expand its range of innovative solutions, explore new opportunities in emerging markets, and strengthen its relationships with its customers, reaffirming its position as a trusted partner.

In the identity solutions sector, e7 is a trusted partner for government and private sector clients worldwide in providing secure identity solutions (national ID cards, passports, bank cards, etc.). The company serves federal authorities in the UAE, CIS countries, Africa, the Middle East, and Latin America. e7 is among a limited number of identity solution providers globally to hold industry certifications specialized in security printing applications. This is achieved through its state-of-the-art manufacturing facility in Abu Dhabi, which has an annual production capacity of up to 50 million national ID cards, 14 million passports (including production capacity as of Q1 2026), 25 million bank cards, and 6 billion tax stamps (as of the end of 2025).

Total revenue from the Identity Solutions segment reached AED 150.4 million in the first half of 2025, a 3.8% year-on-year increase, driven by a strong performance in the second quarter of 2025, when revenue increased by 16.6% year-on-year. This significant growth in second-quarter revenue is attributed to e7's continued focus on signing new contracts within this segment, including a passport production contract in the Middle East and a long-term tax stamp contract in East Africa. The group also secured major contracts to supply bank cards in East Africa and Central Asia, expanding its customer base in the banking sector. This follows the group's renewed certifications from Visa and Mastercard, confirming its continued compliance with the highest standards for manufacturing and processing payment cards.

Within the framework of identity solutions, the e7 Group remains committed to expanding into new markets across Africa, the Asia-Pacific region, the Middle East, and the CIS countries through strategic partnerships between governments.

Printing Solutions revenues reached AED 89.8 million in the first half of 2025, a 14.0% year-on-year decrease, primarily due to the previously mentioned interim revenue realization in the education sector, following the renewal of several significant contracts with key government and private sector clients during 2024.

Moving forward, within the printing solutions segment, e7 is also tapping into opportunities in high-growth sectors, such as events, religious books, and outdoor activities. In the education segment, e7 is expanding beyond schools in the UAE, supporting government institutions and private sector clients with digital educational and training materials. Furthermore, e7's interactive reading platform, "Kotobi," continues to gain significant momentum, now boasting a library of 400 stories in both English and Arabic, empowering students across the UAE.

In the packaging solutions sector, revenues reached AED 19.3 million in the first half of 2025, registering a strong 23.2% year-on-year growth. This growth was driven by new contracts, expanding collaboration with existing clients, and attracting new customers.

During the same period, the group also won the Silver Award for "Best Carton Packaging Converter" at the Prime Packaging Awards, one of the most prestigious awards celebrating innovation and excellence in the packaging sector in the Middle East and Africa region.

e7 continues to focus on driving growth in the packaging sector over the coming period, supported by increasing its market share by attracting new customers in key sectors such as food and beverages, consumer goods, luxury goods, and pharmaceuticals, in both the UAE and Saudi Arabia. The company will further this focus by expanding its partnerships with existing customers, which is expected to contribute to driving growth and increasing operational utilization levels of e7's assets.

The Logistics Solutions segment generated revenues of AED 32.9 million in the first half of 2025, a decrease of 8.5% year-on-year. This decline is primarily due to the indirect impact of the scheduling of revenue recording in the education segment, where Tawzea now handles the distribution of the company's educational products.

The group continues to focus on enhancing its value proposition in the logistics sector, by providing value-added services and adopting effective initiatives to reduce its environmental footprint.

Continued strategic progress in the first half of 2025, driven by innovation and digital initiatives.

The Group continues to make tangible progress on its strategic priorities, launching several key initiatives to simplify, digitize, and enhance its operational capabilities and innovative solutions, including:

• Supplying new passports in the Middle East under a contract that includes advanced security features, such as transparent window technology integrated with a contactless chip, enhancing document security and functionality.
• Exploring opportunities to diversify the product portfolio within identity solutions, through innovative offerings, including cards with LED lighting and cards made of wooden materials
• Renewal of Visa and Mastercard certifications for Identity Solutions for Recycled PVC Cards, Payment Card Industry Data Security Standards (PCI DSS), Mastercard Card Quality Management Program, and ISO 9001, ISO 14001, and ISO 45001 certifications, ensuring continued compliance in the manufacturing and processing of payment cards
• Launching "track and trace" technology in the packaging sector to provide customers with innovative anti-counterfeiting solutions, enhancing product security and traceability.
• Launching "Interactive Digital Books" in the education sector, providing an integrated model that combines print and digital content.
• Explore opportunities to provide digital and web-based printing solutions specifically designed for book publishers and support highly efficient print-on-demand services.
• A comprehensive revamp of the technology infrastructure of the Distribution Company, within the distribution sector, will enhance its technological capabilities, operational efficiency, and speed of customer service through AI-powered call centers, advanced Internet of Things (IoT) solutions for fleet management, and a next-generation integrated smart platform for logistics operations management.

e7 is making tangible progress in its organizational transformation, supporting its efforts to achieve sustainable growth.

In addition to the aforementioned initiatives launched in the first half of 2025, e7 continues its focus on enhancing its customer engagement, shifting from a traditional supplier role to providing integrated, high-impact solutions. Its new approach is focused on enhancing the brand value of its clients through innovative, design-led thinking that enhances the customer experience.

e7 continues to make management appointments to lead the group's future growth, recruiting highly experienced executives during the first half of 2025. In addition to the previously announced appointments of a Chief Technology and Digital Officer to lead the group's transformation into a data-driven organization, and a Chief Commercial Officer to drive revenue growth, the group continues to expand its management team, appointing heads of human resources, industries, and internal audit, each with over 20 years of experience in their respective fields.

A one-time special cash dividend of AED 800 million; and a commitment to regular dividend distributions within a clear multi-year framework covering the financial years 2025–2027

Following the period end, e7 announced a one-time special dividend of AED 800 million, reflecting the group's proactive and balanced approach to capital allocation. The group also committed to paying annual dividends of at least 10 fils per share during the fiscal years 2025–2027.

This exceptional distribution is part of e7's strategic capital restructuring plan, aimed at enhancing shareholder returns and creating long-term value. In conjunction, the group intends to launch an optional offer to buy back all outstanding warrants at a price of AED 2.40 per warrant.

This initiative follows a comprehensive review of the current market landscape in the packaging and identity solutions sectors, with the aim of identifying inorganic growth opportunities. It also reflects the group's disciplined approach to capital allocation. The restructuring plan is designed to strengthen e7's balance sheet and ensure sustainable financial flexibility, enabling the group to capitalize on future strategic acquisitions. In this context, the group continues to focus on expanding its identity solutions business, particularly through follow-on acquisitions targeting digital identity and systems integration capabilities.

No change to financial forecasts and guidance for 2025

In line with the momentum of operational performance, the progress made on strategic initiatives during the first half of the year, and the continuation of the ambitious growth vision, management is renewing its forecast for 2025.

• Fiscal Year 2025 Revenue: The Group is expected to achieve double-digit annual revenue growth.
• EBITDA for FY25: The Group is expected to achieve single-digit annual growth in EBITDA.

Highlights of the financial results

First half of 2025 = six months ending June 30, 2025

Second quarter of 2025 = three months ending June 30, 2025

About the e7 Group:

e7 Group (listed on the Abu Dhabi Securities Exchange under the ticker symbol: e7) is a leading provider of identity and education solutions. It delivers high-quality services to enhance the physical presence of brands through its integrated products and solutions, including identity, printing, packaging, logistics, and education. The Group's value proposition to clients is based on applying an integrated, customer-centric approach to account management and leveraging synergies across operations to deliver distinctive and innovative solutions. The Group seeks to strengthen its position as a comprehensive service provider to clients, including governments, corporations, and financial institutions, spread across the Middle East, Central and South Asia, Europe, and South America. For more information, please visit our website www.E7group.ae .

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