One Technologies:

Revenues in 2016 have grown by approximately 3.1% to approximately NIS 1.31 billion; the net profit attributed to the shareholders has amounted to approximately NIS 66.3 million

The revenues in the fourth quarter of 2016 have grown to approximately NIS 380.2 million; the net profit in the quarter has amounted to approximately NIS 19.2 million

The company's board of directors has approved the distribution of a dividend at a sum of approximately NIS 12.6 million

Shai Uzon, CEO of the company: "In the fourth quarter, we continued to show an increase in revenues. The digital revolution and the movement of organizations to cloud solutions create new opportunities for us to promote and execute complex computing projects. This year we have invested in the development of several solutions in the cloud, such as net suite, service now, and additional cloud solutions. We believe that these investments will continue to contribute to the company's growth in 2017 and in the years to come. The slight decline in the operating profits arises from the company's activity abroad. Also, in 2017 we will continue to act to locate purchase opportunities and new growth engines in Israel and abroad which are suitable for the company's expansion strategy and the increase of the solutions we offer to our clients".

The One Technologies company, which is one of the leading IT companies in Israel, concludes the fourth quarter and the whole year 2016.

Data summary for the whole year 2016:

The company's revenues in 2016 have increased by approximately 3.1% to approximately NIS 1.31 billion, compared to approximately NIS 1.26 billion in the parallel period of the previous year. The increase in revenues mostly arose from an increase in the revenues of the software solutions and services sector and of the computing solutions and infrastructure sector.

The operating profit in 2016 amounted to approximately NIS 90.1 million (approximately 6.9% of the revenues), compared to NIS 92.9 million (approximately 7.3% of the revenues) in the parallel period of the previous year. The reduction mostly arises from a decrease in the profitability of a subsidiary operating abroad.

The EBITDA in 2016 amounted to approximately NIS 105.4 million, compared to approximately NIS 108.3 million in the parallel period of 2015.

The net profit of the company in 2016 amounted to approximately NIS 67.2 million (approximately NIS 66.3 million is attributed to the shareholders), compared to approximately NIS 68.5 million (approximately NIS 66.2 million is attributed to the shareholders) in the parallel period of the previous year.

The distribution of revenues and operating profit according to the central activity sectors:

The revenues from the software solutions and services sector increased in 2016 to approximately NIS 551.1 million, compared to approximately NIS 543.4 million in the parallel period of the previous year. The increase partly stems from the first consolidation of the Dicomano company. The operating profit in this sector amounted to approximately NIS 59.2 million, compared to approximately NIS 62.4 million in the parallel period of the previous year. The reductions stems mostly from a decrease in the profitability of a subsidiary operating abroad.

The revenues from the computing and infrastructure solutions increased in 2016 by approximately 7.2% to approximately NIS 638.6 million, compared to approximately NIS 595.8 million in the parallel period of the previous year, this being as a result of organic growth in the operations of this sector. The operating profit in this sector increased by approximately 5.9% to approximately NIS 29.7 million, compared to approximately NIS 28.1 million in the parallel period of the previous year.

The revenues from the managed services sector increased in 2016 to approximately NIS 119.9 million, compared to approximately NIS 119.1 million in the parallel period of the previous year. The operating profit in this sector amounted to approximately NIS 5.3 million, compared to approximately NIS 6.9 million in the parallel period of the previous year. The reduction in profitability in this sector stems from a growth in operations vis-à-vis clients for whom the profitability rate is lower than the average.

Data summary for the fourth quarter of 2016:

The company's revenues in the quarter have increased by approximately 3.2% to approximately NIS 380.3 million, compared to approximately NIS 368.2 million in the parallel quarter of the previous year. The increase in revenues stemmed mostly from an increase in the revenues of the software solutions and services sector and of the computing solutions and infrastructure sector.

The operating profit in the quarter amounted to approximately NIS 28.3 million (approximately 7.5% of the revenues), compared to approximately NIS 29.3 million (approximately 7.9% of the revenues) in the parallel quarter of the previous year. The reduction partly stems from a decrease in the profitability of a subsidiary of the company, which operates abroad.

The EBITDA in the quarter amounted to approximately NIS 31.9 million, compared to approximately NIS 33.3 million in the parallel quarter of the previous year.

The net profit of the company in the quarter amounted to approximately NIS 19.2 million (approximately NIS 19.1 million is attributed to the shareholders), compared to approximately NIS 19.5 million (approximately NIS 19.2 million is attributed to the shareholders) in the parallel quarter of the previous year.

The company's balance sheet indicates that the scope of cash and short-term financial assets in the company's possession, as of December 31^st, 2016, amounted to approximately NIS 133.4 million.

The company's equity, as of December 31^st, 2016, increased by 9.5% to approximately NIS 260.4 million, this being after the distribution of a dividend at the sum of approximately NIS 44 million during 2016.

Concurrently with the publication of the reports, the company's board of directors approved the distribution of a dividend at a sum of approximately NIS 12.6 million.

Additional events during the quarter:

• In March of 2017, the company purchased the balance of the automation company's shares for a consideration of approximately NIS 18.8 million. After the purchase is completed, One Technologies will hold 100% of the automation company's foundation stock.
• In February of 2017, the company completed the purchase transaction of 50.5% of the issued and paid-up capital of the Shohar Solutions Ltd. company.
• In February of 2017, the company signed, together with the Niram Gitan Group (NGG), a strategic agreement for cooperation in the sale, consultation and implementation of success factors in the Israeli market.
• In January of 2017, the company completed the purchase transaction of 80% of the issued and paid-up capital of Nibit Communication & Computers Ltd. for a consideration of approximately NIS 15 million.

One Software Technologies is one of the market's leading IT companies. The company provides end-to-end computing solutions, One1 Home for IT, for over 1,500 clients in the various market sectors: telecom, industry, high-tech, banking and finances, insurance, retail, commerce, et cetera. The company employs over 3,000 professional employees in Israel and abroad. The company acts on the basis of a client-oriented strategy and provides a full basket of computing solutions, under one roof; from hardware infrastructures and advanced storage systems to complex software solutions and projects. The company also acts in the field of marketing hardware products and computer systems, as well as in the supply of an ensemble of managed services in the field of computing to organizations. The company's stock is included in the TA Yeter 50 index. The company's chairman is Mr. Adi Eyal, and the company's CEO is Mr. Shai Uzon.