SosTravel.com (BIT:SOS) Research Update

• Arrowhead is updating its coverage on SosTravel.com S.p.A. (“SosTravel” or the “Company”) with a fair value bracket of EUR 1.76 – EUR 2.16 (Share Price on July 5, 2022: EUR 0.94) based on Discounted Cash Flow Valuation and Company Comparable Valuation
• SosTravel operates two digital platforms, SosTravel and FLIO, that act as marketplaces for travel bookings and peripheral travel services
• The Company recently added travel services such as bookings for transport, accommodation, and attractions to the SosTravel platform. These services include lost luggage concierge, flight tracking, travel insurance, flight compensation, and access to airport & airline information
• Since 2019, the Company has completed two significant acquisitions – FLIO and DDC. DDC provides travel booking services and the Company has merged DDC’s services into its platform. DDC is a landmark acquisition for SosTravel and the Company expects it to contribute 80% of its annual revenues going forward
• FLIO operates as an independent platform from SosTravel. The acquisition of FLIO has enabled the Company to expand its geographical presence and increase its user base
• The Company is working on several new features for its SosTravel platform, including developing a Travel Plan feature in its platform which will enable users to plan their itinerary within the platform, and add accommodations, attractions, and transport as and when needed
• SosTravel is likely to benefit from long-term tailwinds for the Travel & Tourism industry, including a growing middle-class in emerging markets, higher disposable income among young- and middle-aged people, growing preference for travel instead of excessive accumulation of hard assets, and the abundance of affordable travel and lodging options