Bertolotti — Earnings Release 2020

Jul 31, 2020

Informazione Regolamentata n. 0469-46-2020		Data/Ora Ricezione 31 Luglio 2020 17:32:14	MTA - Star
Societa'	:	BE
Identificativo Informazione Regolamentata	:	135648
Nome utilizzatore	:	SERVICEN03 - Cornini
Tipologia	:	1.2
Data/Ora Ricezione	:	31 Luglio 2020 17:32:14
Data/Ora Inizio Diffusione presunta	:	31 Luglio 2020 17:32:15
Oggetto	:	Be_PR31072020_1H_Results_2020
Testo del comunicato

Vedi allegato.

Shaping the future

INVESTORS INFORMATION

INVESTORS INFORMATION

31th July 2020 // Milan

Be: Resilience and soundness of business model confirmed. Total Revenues at €83.4M (+12.5% vs 1H 2019). EBITDA +7.8% and EBIT + 2.6% vs. 1H 2019

• Total Revenues €83.4M (€74.2M as of 30.06.2019)
• EBITDA €13.0M (€12.0M as of 30.06.2019)
• EBIT €8.2M (€8.0M as of 30.06.2019)
• EBT €7.5M (€7.3M as of 30.06.2019)

The Board of Directors of Be Shaping the Future ("Be"), listed on the STAR Segment of Borsa Italiana, today met approved the Interim Financial Report as of June 30th 2020.

Be continues on its growth path with its 1H results. With the first half of 2020 going down in history as the biggest global crisis in generations, with Italy in the forefront as an early-stage affected country, Be further confirms the resilience of Company's business model - says Stefano Achermann, CEO of Be. 1H results effectively graduated our stock in this crisis as an anticyclical, defensive investment. The Crisis is confirmed as an accelerator of Financial Industry's need to go digital across the board. This especially in view of Banks' increased reliance on provision of remote services and on dispersed working environments.

STOCK DATA		GROUP DATA (as of 31.12.2019)		HEADQUARTER	MAIN OFFICES
Reuters code:	BEST.MI	Total Revenues(Eur mln):	152.3	Rome	Milan
Bloomberg code:	BEST.MI	EBITDA (Eur mln):	25.9		London
		EBIT (Eur mln):	12.2		Munich
SHAREHOLDERS DATA		EBT (Eur mln):	11.1		Frankfurt
No. of ordinary shares (mln):	134.9	Net Profit (Eur mln):	6.1		Madrid
Total no. of shares (mln):	134.9	Net Financial Position (Eur mln): (11.4)			Wien
Market cap. (Eur mln):	145.5				Varsaw
Floating (%):	39.37				Bucharest
Floating (Eur mln):	57.3				Kyiv
Main Shareholder:	T.I.P.				Zurich

Be S.p.A.

Investor Relations | Claudio Cornini | +39 06 54 24 86 24 | IR.be@be-tse.it

The Company has also strengthened its position on its first customer, a leading International Banking Group, establishing itself – in competition with the leading global players in the sector – as the first partner for potential jobs assignments in the period 2020-2022. 1H 2020 results show increase in Revenues of 12.5%, increase in EBITDA of 7.8% and in EBIT of 2.6%. The medium/long-term trend is further reinforced by agreements signed by the new companies Human Mobility and Doom Entertainment, with economic impact in the second half of the year. Net Financial Debt, amounted to €25.9M, slightly reduced year-on-year. All of this allows us at the present moment to confirm our Business Plan targets.

Main consolidated results as of June 30th 2020

Total Revenues stood at €83.4M compared to €74.2M as of June 30th 2019.

Consulting business confirms its significant share, with total revenues increased by 4.9% compared to 1H 2019; ICT Solutions business as a whole recorded a significant growth in total revenues (30.4% compared to 1H 2019); Digital business, partly made up of companies previously included in the ICT sector and partly by new companies, is reported independently, with total revenues of €3.1M.

Foreign subsidiaries' revenues stood at €29.7M (35.6% of Group's total revenues), compared to €29.8M as at June 30, 2019.

The Gross Operating Margin (EBITDA) was €13.0M, up 7.8% on June 30th 2019 (€12.0M), with an EBITDA margin of 15.1 % vs. 16.6% as of June 30th 2020 - reflecting an increase in lower margin ICT component in the business mix.

EBIT amounted to €8.2M, with a slender increase of 2.6% over June 30th 2019 (€8.0M).

The Group pre-tax result (EBT) amounted to €7.5M, up 2.5% on June 30th 2019 (€7.3M).

Net Financial Debt, amounted to €25.9M, slightly reduced compared to June 30th, 2019 (€27.8M) while it increased by €14.5M over December 31st 2019 (€11.4M) due to usual seasonal nature of Company's cash flow.

Significant events during the period

In March Be and ZDF of Federico Lucia, Italian artist and producer aka

Fedez, have decided to join forces to create the market leader in production and distribution of digital content. "Dream of Ordinary Madness (Doom) Entertainment" is the new vehicle incorporating the spin-off of the activities of ZDF, Fedez's operational company. The transaction is part of Be Group's strategy of developing a major digital engagement business area, with main focus on Europe's Financial Industry, dealing with talent research & development, image management & digital presence, production of content, creation & launch of brands, and personal coaching of artists.

The Extraordinary and Ordinary Shareholders Meeting of Be, held on April 22nd, 2020, in first call, took the following resolutions:

• amendment of article 1 of the Articles of Association, changing company name to "Be Shaping the Future Spa";
• approval of the financial statements at 31 December 2019, allocation of profit for the year and dividend distribution;
• approval of the report on remuneration pursuant to Article123 ter of Legislative Decree no.58 of 24 February 1998;
• appointment of the Board of Directors for fiscal years 2020- 2022, roles and powers attribution;
• purchase and disposal of treasury shares with revocation of the relevant authorization by the Ordinary Shareholders' Meeting on April 18th, 2019.

During the month of June, Be created a centre of excellence dedicated to solutions in support of human mobility. The goal - beyond providing a high-impact tool for the return to post-pandemic normality - is to design an entire ecosystem of services designed to facilitate life and movement of people in a corporate environment. Born from an idea of Stefano Quintarelli, Luca Mastrostefano and Marco Locatelli, the new Company, "Human Mobility Srl", is controlled by Be Group with a share of 51% of capital.

Significant events after the period

Be took part to a dedicated capital increase of YOLO, the on demand, instant and micro insurance platform founded by Simone Ranucci Brandimarte and Gianluca de Cobell. Be's investment in YOLO is made alongside those of Intesa San Paolo Vita, Banca di Piacenza and CRIF. Be's participation will amount to a 2.5% interest in YOLO. Be is also party to a newly signed Shareholders' Agreement amongst

founders and new investors.

Business outlook

In light of the period results and in spite of the macroeconomic uncertainties due to the impact of the Covid-19 pandemic, at the present time it is reasonable to confirm the Company's yearly and overall targets under the 2020-2022 Business Plan.

Attached

1. Restated consolidated income statement as of June 30th 2020

2. Restated consolidated statement of financial position as of June 30th 2020

3. Consolidated net financial position as of June 30th 2020

About Be

Be Group is listed in the STAR segment of Borsa Italiana and is one of the leading Italian players in the Consulting sector. The company provides Business Consulting and Information Technology services. A combination of specialist skills, advanced proprietary technologies and a wealth of experience enable the Group to work with leading international financial and insurance institutions to create value and boost business growth. With more than 1,300 employees and branches in Italy, United Kingdom, Germany, Austria, Switzerland, Spain, Romania, Poland and Ukraine, in 2019 the Group recorded revenues in the amount of Euro 152.3 million.

Be S.p.A. Investor Relations | Claudio Cornini | +39 06 54 24 86 24 | IR.be@be-tse.it

This press release is available on the Company's website www.be-tse.it and on the centralized storage mechanism "eMarket STORAGE" at

The Executive in charge of preparing the company's accounting documents, Manuela Mascarini, declares, in accordance with art. 154 bis, paragraph 2 of Italian Legislative Decree no. 58 dated 24 February 1998, that the accounting disclosures contained in this press release correspond to that recorded in company documents, ledgers and accounting entries.

1. RESTATED CONSOLIDATED INCOME STATEMENT

Amounts in EUR thousand	1H 2020	1H 2019		 (%)
Operating revenue	82,005	73,049	8,956	12.3%
Other operating revenue and income	1,436	1,102	334	30.3%
Total Revenues	83,441	74,151	9,290	12.5%
Cost of raw materials and consumables	(53)	(160)	107	(66.9%)
Cost of services and use of third-party assets	(33,565)	(27,217)	(6,348)	23.3%
Personnel costs	(39,564)	(36,182)	(3,382)	9.3%
Other costs	(760)	(811)	51	(6.3%)
Internal capitalisations	3,469	2,246	1,223	54.5%
Gross Operating Margin (EBITDA)	12,968	12,027	941	7.8%
Amortisation and depreciation	(4,775)	(4,053)	(722)	17.8%
Write-downs and provisions*	(8)	0	(8)	n.a.
Operating Profit (Loss) (EBIT)	8,185	7,974	211	2.6%
Net financial income and expense	(691)	(664)	(27)	4.1%
Share of profits (losses) of equity-accounted investees	7,494	7,310	184	2.5%
Profit (loss) before tax from continuing operations	(2,894)	(2,694)	(200)	7.4%
Taxes	4,600	4,616	(16)	(0.3%)
Net profit (loss) from continuing operations	0	0	0	n.a.
Net profit (loss) from discontinued operations	4,600	4,616	(16)	(0.3%)
Consolidated net profit (loss) including minority interests	416	356	60	16.9%
Net profit (loss) attributable to minority interests	82,005	73,049	8,956	12.3%
Group net profit (loss)	4,184	4,260	(76)	(1.8%)

*Provisions include accrued costs of € 4.2M which are uncertain in their realization and booked among "Personnel Costs" and "Service Costs" in the P&L of the Financial Statement

2. RESTATED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amounts in EUR thousand	30.06.2020	31.12.2019		 (%)
Non-current assets	105,500	101,816	3,684	3.6%
Current assets	49,507	33,135	16,372	49.4%
Non-current liabilities	(21,778)	(22,667)	889	(3.9%)
Current liabilities	(50,138)	(44,785)	(5,353)	12.0%
Net Invested Capital	83,091	67,499	15,592	23.1%
Shareholders' Equity	57,191	56,072	1,119	2.0%
Net Financial Indebtedness	25,900	11,427	14,473	n.a

Be S.p.A. Investor Relations | Claudio Cornini | +39 06 54 24 86 24 | IR.be@be-tse.it

3. CONSOLIDATED NET FINANCIAL POSITION

Amounts in EUR thousand	30.06.2020 31.12.2019	  (%)