Neosperience

Earnings Release • Sep 30, 2022

Informazione Regolamentata n. 20149-47-2022		Data/Ora Ricezione 30 Settembre 2022 20:00:37	Euronext Growth Milan
Societa'	:	NEOSPERIENCE
Identificativo Informazione Regolamentata	:	167739
Nome utilizzatore	:	NEOSPERIENCEN01 - Scaravelli
Tipologia	:	1.2
Data/Ora Ricezione	:	30 Settembre 2022 20:00:37
Data/Ora Inizio Diffusione presunta	:	30 Settembre 2022 20:00:41
Oggetto	:	NSP Results	CS_NEOSPERIENCE UK 1st half 2022
Testo del comunicato

Vedi allegato.

PRESS RELEASE

NEOSPERIENCE RECORDS STRONG GROWTH OF GROUP RESULTS IN THE FIRST HALF OF 2022

CONSOLIDATED SALES: € 11,7 MILLION, +34% vs 1H 2021 (€ 8,8 MILLION), +65% vs 1H 2020 (€ 7,1 MILLION)

CONSOLIDATED EBITDA: € 4,1 MILLION (35,1%OF SALES), +32% vs 1H 2021 (€ 3,1 MILLION), +71% vs 1H 2020 (€ 2,4 MILLION)

Most relevant consolidated financial figures 1H2022

• Value of the Group's production of € 13.7 million (+32% compared to 1H2021)
• Sales of € 11.7 million (+34% compared to 1H2021))
• EBITDA of € 4.1 million (35,1% of sales, +323% compared to 1H2021)
• EBIT of € 1.2 million (+4% compared to 1H2021)
• Net profit of € 642 thousand (+76% compared to 1H2021)
• Group net profit of € 529 thousand (-18% compared to 1H2021)
• Shareholders' equity of € 25.7 million (+10% compared to 31 December 2021 and +43% compared to 1H2021)
• Net financial debt of € 8.8 million, compared to € 7.0 million at the end of 2021
• Further increase in cross-selling; launch of vertical development projects based on Artificial Intelligence in the Fintech, Healthcare, Security&Safety sectors; strengthening of the capability to meet the digitization needs of small and medium-sized enterprises, expected to grow strongly in the next three years thanks to PNRR resources.

Milan, 30 September 2022 – The Board of Directors of Neosperience S.p.A. ("Neosperience" or the "Company"), innovative SME and reference player in artificial intelligence, listed on Euronext Growth Milan, today approved the consolidated half-year financial report as of 30 June 2022, prepared according to national accounting standards (OIC) and subject to limited audit.

Dario Melpignano, President of Neosperience, commented: " The first half of 2022 saw an excellent evolution of our activities which was reflected in a significant growth in financial results, a strong increase compared to the first half of 2021.

In 2022, Neosperience maintained its focus on market segments and technological solutions that generated results in continuous and constant growth, with attention to recurring revenues and advanced proprietary solutions based on AI that generated a positive impact on margins."

Among the most significant strategic guidelines:

• development of solutions to improve the commercial and marketing processes of client companies on one hand, enhancing their contact and automation skills of the business cycle to increase revenues and sales margins and, on the other hand, improve operational processes so as to digitally encode, collect and make applicable the knowledge and experience of the most experienced professionals in the company;
• development of new initiatives in the medical, pharmaceutical and healthcare sectors with companies, hospitals and research institutes with the launch of Neosperience Health S.r.l., currently 90% owned by Neosperience S.p.A., a company dedicated to promoting the digital transformation of hospital companies, clinics, diagnostic centres and nursing homes;
• acceleration of the growth strategy in Europe, leveraging on the partnership with the global HubSpot CRM platform, with the aim of strengthening the role of Neosperience as a pole of aggregation of the most experienced European realities in applied artificial intelligence to help client companies guide their strategic differentiation starting from the customer experience;
• development of fruitful contacts for international expansion, thanks to the growing interest that Neosperience Solutions are obtaining from various foreign counterparts;
• strengthening of the partnerships with Google, but also with Tencent/WeChat assisting European companies in the food, wine and design/furniture sectors to access Far East markets;
• from a technological point of view, the development of new analytics and data lake solutions specifically built to help clients become data-driven, simplify IT governance and adopt a serverless approach, with the aim of helping Neosperience clients focus on their end customers, putting them authentically at the center of their strategy, also thanks to innovative Voice Of Customer analysis techniques and insight extraction based on natural language processing.

Comments on the consolidated results as of 30 June 2022

As of 30 June 2022, Neosperience recorded net sales of € 11.7 million (+34% compared to € 8.8 million as of 30 June 2021), thanks to the acquisition of several new customers (today over 800, compared to 200 in 2019), and to the expansion of the range of products offered.

EBITDA amounted to € 4.11 million, with a significant increase of 32% compared to the similar value of 30 June 2021, with an incidence of 35.1% on revenues, thanks to the significant contribution of scalable activities.

These important results, achieved in a difficult period for the Italian and international economy, highlight the solidity of the Neosperience business model, based on an increasing plurality of skills and markets that diversifies the risk of dependence on a limited number of business lines. The attention and commitment of the entire team to maintaining high sales margins and the appreciation of Neosperience products and services by the market is also remarkable.

EBIT remained stable at € 1.24 million (+3.6% compared to 1H2021), after total depreciation charges of € 2.9 million (of which € 2.5 million for depreciation of intangible assets) compared to € 1.9 million in the first half of 2021, including goodwill depreciation on acquired investments.

The group net profit amounted to € 0.53 million (€ 0.64 million at 1H2021).

Shareholders' equity on 30 June 2022 rose to € 25.7 million, compared to € 23.3 million at 31 December 2021. Net financial debt amounted to € 8.8 million compared to € 7.0 million at 31 December 2021 and € 5.9 million at 30 June 2021, partly as a result of a temporary increase of trade receivables, mostly already reabsorbed.

Relevant events after 30 June 2022

In the second part of the year, the activity continued aimed at acquiring new prestigious customers in the sectors: tourism, health, pharma, energy&utility and financial services for the implementation of projects based on the Solutions in our portfolio.

Cross-selling activities have continued successfully, helping to enhance relationships with customers already active at each Group company: we expect a further boost in sales thanks to the intensification of this activity, that has already produced very positive results.

Explorations continue for new acquisitions; it should be noted that within the acquisitions completed so far, there has been an excellent level of integration and cooperation with the key people of the companies involved; this is mainly due to the positive attitude of all the entrepreneurs who have joined our Group, who have shared our values and goals, since the very beginning of the collaboration with Neosperience.

The Financial Report as of 30 June 2022 will be made available to the public in the terms provided for by the Euronext Growth Milan Issuers' Regulation, as well as on the Company's website, www.neosperience.com, in the "Investors/Financial Documents" section and on the BorsaItaliana.it website, shares/documents section.

Consolidated Balance Sheet

	30.06.2022		31.12.2021		30.06.2021
	Consolidated	inc. %	Consolidated	inc. %	Consolidated	Delta
	Balance Sheet		Balance Sheet		Balance Sheet
NON-CURRENT ASSETS
Fixed Intangible Assets	27.547.173	52%	21.270.681	44%	18.037.081	6.276.492
Fixed Tangible Assets	3.207.626	6%	3.022.309	6%	572.460	185.317
Investements in associates	1.027.267	2%	1.314.043	3%	1.016.653	(286.776)
Other non-current credits	264.608	0%	260.284	1%	189.491	4.324
Other non-current Financial credits	6.136	0%	9.028	0%	255	(2.892)
Prepaid Taxes	150.236	0%	155.966	0%	148.632	(5.730)
TOTAL NON-CURRENT ASSETS 32.203.046			60% 26.032.311		54% 19.964.572	6.170.735
CURRENT ASSETS
Inventories	324.599	1%	256.778	1%	344.738	67.821
Trade recivables	11.318.126	21%	8.102.340	17%	8.235.541	3.215.786
Trade recivables from associates	138.351	0%	3.375.515	7%	501.157	(3.237.164)
Tax credits	1.480.735	3%	590.064	1%	735.866	890.671
Other current credits	320.530	1%	965.034	2%	1.029.989	(644.504)
Trading assets	1.154.669	2%	152.450	0%	139.669	1.002.219
Cash and Equivalents	6.496.483	12%	8.461.078	18%	7.112.972	(1.964.595)
TOTAL CURRENT ASSETS 21.233.493			40% 21.903.259		46% 18.099.932	(669.766)
TOTAL ASSETS 53.436.539			100% 47.935.570		100% 38.064.504	5.500.969
EQUITY
Shareholders Capital	899.566	2%	872.216	2%	760.720	27.350
Share Premium Reserve	20.164.299	38%	18.439.318	38%	13.184.056	1.724.981
Legal Reserve	170.081	0%	131.165	0%	131.165	38.916
Statutory Reserve	3.098.260	6%	2.358.859	5%	2.357.980	739.401
Negative reserve for treasury shares in portfolio	(41.419)	0%	(306.587)	-1%	(306.587)	265.168
Other Reserves	539.860	1%	552.594	1%	540.721	(12.734)
Consolidation Reserve	(53.904)	0%	(53.904)	0%	(53.904)	-
Retained Earnings	(263.756)	0%	56.813	0%	(41.692)	(320.569)
Net income of the year	172.764	0%	597.226	1%	233.909	(424.462)
Minority interests	971.207	2%	627.283	1%	1.118.927	343.924
TOTAL EQUITY 25.656.958			48% 23.274.983		49% 17.925.295	2.381.975
NON-CURRENT LIABILITES
Employees Benefits	1.437.779	3%	1.292.219	3%	1.150.285	145.560
Provisions for risks and charges	129.895	0%	28.393	0%	51.863	101.502
Non-current Financial Debts	12.656.829	24%	12.587.127	26%	11.070.045	69.702
Non-current Tax Payables	75.239	0%	-	0%	232.963	75.239
Other non-current Payables		0%	-	0%	-	-
TOTAL NON-CURRENT LIABILITES 14.299.742			27% 13.907.739		29% 12.505.156	392.003
CURRENT LIABILITIES
Current Financial Debts	3.785.344	7%	3.004.569	6%	2.068.861	780.775
Deposits	-	0%	-	0%	-	-
Accounts Payables	3.438.849 1.763.281	6%	2.801.238 1.319.006	6%	1.958.623 1.579.034	637.611
Tax Payables	3.740.447	3%	3.107.589	3%	1.746.408	444.275
Other Payables Accruals and Deferred Income	751.918	7% 1%	520.446	6% 1%	281.127	632.858 231.472
TOTAL CURRENT LIABILITIES 13.479.839			25% 10.752.848	22%	7.634.053	2.726.991
TOTAL LABILITIES 53.436.539			100% 47.935.570		100% 38.064.504	5.500.969

Consolidated Income Statement

30.06.2022 31.12.2021 30.06.2021 Group Income Group Income Group Income Delta Statements Statements Statements 11.717.055 Sales Revenues 18.153.423 8.767.250 2.949.805 324.599 Changes in inventories of work in progress 256.778 344.738 (20.139) 1.499.266 Work performed by entity and capitalised 1.903.131 992.137 507.129 123.475 Other income 395.266 218.294 (94.819) VALUE OF PRODUCTION 13.664.395 20.708.598 10.322.419 3.341.976 (4.788.511) Raw material and services used (7.420.879) (3.575.375) (1.213.136) 8.875.884 VALUE ADDED 13.287.719 6.747.044 2.128.840 (4.361.422) Employee benefit expense (7.010.380) (3.456.440) (904.982) (148.410) Other expenses (238.542) (82.123) (66.287) (256.778) Changes in inventories of work in progress (94.093) (94.093) (162.685) 4.109.274 EBITDA 5.944.704 3.114.388 994.886
(2.870.748) Depreciation and amortisation expense (4.464.770) (1.918.257) (952.491)
1.238.526 EBIT 1.479.934 1.196.131 42.395
(182.491) Finance costs (379.200) (156.218) (26.273)
0 Depreciation of Investements 0 0
0 Depreciation of Financial Assets 0 0
1.056.035 PROFIT/LOSS BEFORE TAX 1.100.734 1.039.913 16.122
(526.923) Income tax expense (321.378) (397.977) (128.946)
529.112 PROFIT/LOSS FOR THE PERIOD 779.356 641.936 (112.824)
356.348 Profit/Loss attributable to minority interests 182.130 408.027 (51.679)
172.764 PROFIT/LOSS OF THE GROUP 597.226 233.909 (61.145)
32,7% 35,5% -0,5% EBITDA % 35,1%
8,2% 13,6% -3,1% EBIT % 10,6%
6,1% 11,9% -2,8% Profit/Loss Before Tax % 9,0%
4,3% 7,3% -2,8% Profit/Loss For The Period % 4,5%

Cash Flow Statement	30.06.2022	31.12.2021
A. Cash flows deriving from operating activities (indirect method)
Profit (loss) for the year	529.112	779.356
Income taxes	526.923	319.768
Interest expense/(assets)	182.491	379.200
(Dividends)
Capital gains / losses on disposed assets
1. ) Profit (loss) for the year before income taxes, interest, dividends and capital gains /
losses on disposal	1.238.526	1.478.324
Adjustments for non-monetary items not included in net working capital
Provisions to funds	196.554	408.940
Depreciation of fixed assets	2.862.598	4.420.435
Non monetary adjustments of financial assets	-	23.071
Write-downs / (revaluations) of financial assets
Other adjustments for non-monetary items
2. Cash flow before change in net working capital	4.297.678	6.330.770
Change in net working capital	(67.821)	(162.685)
Decrease / (increase) in inventories Decrease / (increase) in receivables from customers	(137.622)	(2.990.187)
Increase / (decrease) in trade payables from suppliers	637.611	(1.157.136)
Decrease / (increase) in accrued income and prepaid expenses	201.376	245.820
Increase / (decrease) in accrued liabilities and deferred income	231.472	130.941
Other changes in net working capital	1.425.674	2.624.953
3. Cash flow after change in net working capital	6.588.368	5.022.476
Other adjustments
Interest received / (paid)	(182.491)	(379.200)
(Income taxes paid)	(340.757)	(771.399)
Dividends collected	(50.994)
(Use of funds) 4.Cash flow after other adjustments	6.014.126	(120.045) 3.751.832
Operating Cash flow (A)	6.014.126	3.751.832
B. Cash flows deriving from the investment activity
Tangible fixed assets	(273.246)	(2.731.955)
(Investiments)	(273.246)	(2.731.955)
Sale price of divestments
Intangible assets	(8.765.553)	(5.821.536)
(Investiments)	(8.765.553)	(5.821.536)
Sale price of divestments
Financial assets	213.574	(339.958)
(Investiments)		(339.958)
Sale price of divestments	213.574
Other financial assets	(818.743)	(411.757)
(Investiments)	(1.003.000)	(11.206)
(Increase) / Decrease in other assets / liabilities	184.257	(400.551)
	-
Acquisition of subsidiaries net of cash and cash equivalents
Sale of subsidiaries net of cash and cash equivalents
Cash flows deriving from the investment activity (B) (9.643.968)
Increase (decrease) in short-term bank position
New medium term financing	897.473 1.847.029
Reimbursement of loans	(1.344.423)
Paid-in capital increase	-
Sale (purchase) of own shares	265.168
C. Cash flows deriving from the financing activity Third party funds Equity		(129.500) (9.434.706) 2.030.687 2.828.629 (1.297.781) 4.293.328 (213.621)
Cash flows deriving from the financing activity (C)	1.665.247	7.641.242
Increase (decrease) in cash and cash equivalents (A ± B ± C)	(1.964.595)	1.958.368
Cash and cash equivalents (beginning of period)	8.461.078	6.502.710

(1.964.595) 1.958.368

Net Financial Debt

	30.06.2022 Consolidated Balance Sheet	31.12.2021 Consolidated Balance Sheet	30.06.2021 Consolidated Balance Sheet
Cash at the bank A.	(6.496.483)	(8.461.078)	(7.112.972)
Cash equivalents B.
Other current financial assets C.	(1.154.669)	(151.669)	(139.669)
Liquid assets` (A) + (B) + (C) D.	(7.651.152)	(8.612.747)	(7.252.641)
Current financial credit E.
Current financial debt F.	2.931.925	2.080.874	1.495.290
Current portion of non-current financial debt G.
Other non-current financial debt H.	853.419	923.695	573.571
I. Current financial debt (F) + (G) + (H)	3.785.344	3.004.569	2.068.861
Net current financial debt (I) + (E) + (D) J.	(3.865.808)	(5.608.178)	(5.183.780)
Non-current financial debt K.	8.821.082	8.409.567	8.333.005
Debt instruments L.	1.840.674	2.182.638	2.515.284
Trade payables and other non-current payables M.	1.995.073	1.994.922	221.756
Non-current financial debt (K) + (L) + (M) N.	12.656.829	12.587.127	11.070.045
Total financial debt (J) + (N) O.	8.791.021	6.978.949	5.886.265

***

Neosperience S.p.A.

Neosperience is an innovative SME listed on Euronext Growth Milan that operates as a "software vendor". . It was recently named by Gartner as the only Italian company among the six most innovative software companies in the world, together with Salesforce and SAS. Founded in Brescia in 2006 by Dario Melpignano and Luigi Linotto, respectively President and Executive Vice President, the company is active in the field of Artificial Intelligence with Neosperience Cloud: the software platform behind advanced Digital Solutions that allow companies to offer their customers a personalized and empathetic digital experience, with which to attract new customers, increase the value of existing customers, improve revenues and margins and optimize business processes. Neosperience's clients include leading companies in the fashion, retail, healthcare, manufacturing and financial services sectors.

www.neosperience.com

Further information:

INVESTOR RELATIONS Neosperience S.p.A. Lorenzo Scaravelli | ir@neosperience.com | +39 335 7447604

NOMAD

CFO SIM S.p.A. | ecm@cfosim.com | +39 02 303431

MEDIA RELATIONS Close to Media Adriana Liguori | adriana.liguori@closetomedia.it | +39 345 1778974 Sofia Crosta | sofia.crosta@closetomedia.it| +39 337 1374252 Lucia Nappa | lucia.nappa@closetomedia.it | +39 3371079749

SPECIALIST MiT Sim S.p.A.

Cristian Frigerio | cristian.frigerio@mitsim.it | + 39 02 305 61 276