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Neosperience

Earnings Release Mar 30, 2022

4396_bfr_2022-03-30_25282b64-bc9f-4776-8289-61e14e88997f.pdf

Earnings Release

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Informazione
Regolamentata n.
20149-6-2022
Data/Ora Ricezione
30 Marzo 2022
22:01:49
Euronext Growth Milan
Societa' : NEOSPERIENCE
Identificativo
Informazione
Regolamentata
: 159500
Nome utilizzatore : NEOSPERIENCEN01 - Scaravelli
Tipologia : 1.1
Data/Ora Ricezione : 30 Marzo 2022 22:01:49
Data/Ora Inizio
Diffusione presunta
: 30 Marzo 2022 22:01:50
Oggetto : PR_NSP BoD Financial figures 2021
Testo del comunicato

Vedi allegato.

PRESS RELEASE

THE BOARD OF DIRECTORS OF NEOSPERIENCE APPROVES THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 31/12/2021

DOUBLE-DIGIT GROWTH WITH STRONG PROFITABILITY IMPROVEMENT: EBITDA +23%, EBIT +82% COMPARED TO 2020-

CONSOLIDATED SALES OF EURO 18.2 MILLION, +11% COMPARED TO 2020

ANNUAL COMPOUND GROWTH RATE OF SALES EQUAL TO 37% IN 2017/2021

CONSOLIDATED EBITDA OF EURO 5.9 MILLION (32.7% OF SALES), +23% COMPARED TO 2020

CONSOLIDATED EBIT OF EURO 1.5 MILLION (8.2% OF SALES), STRONG GROWTH: +82% COMPARED TO 2020

  • Consolidated sales of Euro 18.2 million at 31 December 2021 compared to 16.4 million in 2020 (+10.9%)
  • Consolidated EBITDA of Euro 5.9 million at 31 December 2021 (32.7% of sales) compared to 4.8 million in 2020 (+23.1%)
  • Consolidated EBIT of Euro 1.48 million at 31 December 2021 compared to 0.81 million in 2020 (+82%)
  • Net profit of Euro 779 thousand at 31 December 2021, compared to Euro 409 thousand in 2020 (+90%)
  • Shareholders' equity of Euro 23.3 million at 31 December 2021, compared to Euro 16.7 million at the end of 2020 (+39%)
  • Net financial debt of Euro 7.0 million at 31 December 2021, compared to Euro 5.9 million at June 2021
  • Three strategic acquisitions completed in 2021: Rhei, Yonder and Looptribe, to strengthen competencies in the AI; further acquisitions in an advanced evaluation phase

  • Strong increase in profitability, also thanks to the improvement of cross-selling on the new customer base with over 750 customers

  • Decision to convene the Shareholders' Meeting in ordinary and extraordinary session

Milan, March 30, 2022 – The Board of Directors of Neosperience S.p.A. ("Neosperience" or the "Company"), an innovative SME and reference player in Artificial Intelligence, listed on Euronext Growth Milan since 20 February 2019, approved the financial statements and consolidated annual results as of 31 December 2021.

Dario Melpignano, Chairman of Neosperience, commented: "2021 was characterized by excellent results achieved in terms of both organic performance and acquisitions made to strengthen the Artificial Intelligence and Healthtech area; in a year that has still been affected by the pandemic, we are very satisfied with the results obtained that have rewarded our efforts and past investments. We increased both turnover and profitability, with an EBITDA margin of 32.7% and EBIT almost doubled. At the same time, we have continued to strengthen our team and entrepreneurial and technological skills.

2021 was an important year not only for our financial results: Neosperience continued on its growth path by completing three strategic acquisitions: Rhei, reference partner in Europe of HubSpot - one of the most successful CRM platforms in the world - Yonder, boutique of excellence in Artificial Intelligence and Looptribe, a company active in AI and Internet of Things. These acquisitions have enhanced the skills of Neosperience and expanded the range of solutions and services offered and the number of customers. We have also dedicated ourselves to the effective integration of the different companies that have joined our group; in the new headquarters in Milan we have created the ideal structure to facilitate the integration between our colleagues and partners, the investee companies and the entire team based in the offices of Turin, Milan, Bergamo, Brescia, Bologna, Bassano del Grappa, Vicenza, Rende. We are very confident to continue well this year and we aim to consolidate the development of our AI solutions applied to the Healthcare sector ".

Luigi Linotto, Executive Vice President of Neosperience, expressed a deep appreciation for having achieved an impressing profitability with an EBITDA at record levels, higher than the entire turnover of Neosperience in 2017: "2021 was a positive and fundamental year in which we organized the company, enhanced cross-selling and expanded the offer of solutions based on Neosperience Cloud to generate recurring revenues even at small and medium enterprises: a further premise for a 2022 of satisfaction for our shareholders, colleagues and partners. Our strategy to drive profit growth will continue to focus on high-margin customer segments and solutions.

2021 EBITDA growth, +23% compared to 2020, and especially of EBIT, +82% compared to 2020, encourage us to continue on the path of growth, both organic and with acquisitions, to consolidate the role of Neosperience as a European reference pole in the applications of Artificial Intelligence for the digital transformation of companies".

Comments on the consolidated results as of 31 December 2021

At the end of fiscal year 2021, Neosperience recorded consolidated sales of €18.2 million: +10.9% compared to €16.4 million at 31 December 2020, thanks to the acquisition of new significant customers, the contribution of new companies that have joined the group and the growing interest from clients for our Solutions, based on the Neosperience Cloud platform.

The positive trend of revenue growth continues, with an average compound growth rate (CAGR) of more than 36% per year in the 2017/2021 period.

The Value of Production increased, from Euro 19.6 million to Euro 20.7 (+6%), EBITDA increased significantly, from Euro 4.8 million at 31 December 2020 to Euro 5.9 million at 31 December 2021, with an incidence of 32.7% on sales (it was 29.5% in 2020) and with an increase of over 23% compared to 2020. This significant improvement is largely due to the better use of the group's internal resources and the consequent decrease in external costs thanks to the increase in efficiency.

EBIT at 31 December 2021 recorded a very consistent growth compared to the previous year, going from Euro 0.81 million to Euro 1.48 million (+82% compared to 31 December 2020) with an incidence of 8.2% on turnover, despite the significant depreciation of intangible assets, demonstrating the company's willingness to continue investing in proprietary solutions that generate high value for customers.

Net profit, equal to Euro 779 thousand, of which Euro 597 thousand pertaining to the group and Euro 182 thousand pertaining to third parties, recorded a similar increase (409 thousand euros at 31 December 2020, +90%).

Shareholders' equity at 31 December 2021 amounted to Euro 23.3 million (of which Euro 627 thousand is attributable to third parties), compared to 16.7 million at 31 December 2020 (+39%).

Net financial debt increased from Euro 5.4 million at the end of 2020 to Euro 5.9 million in June 2021 to Euro 7.0 million in December 2021, with liquidity of Euro 8.4 million available to finance further strategic acquisitions.

Proposed allocation of net profit for the year

The Board of Directors decided to propose to the Shareholders' Meeting to set aside the Group netprofit as a reserve and therefore not to distribute any dividend on the net result of Neosperience S.p.A.

Specifically, the financial statements of Neosperience S.p.A. show a profit for the year of Euro 778,316 after having set aside taxes for the year of Euro 150,415. The Board of Directors intends to propose to the Shareholders' Meeting the financial statements as illustrated, without distributing dividends; therefore, the profit is returned to the legal reserve for Euro 43,268 as provided for by

art. 2430 of the Civil Code and to the extraordinary reserve for Euro 735,048 as provided for by art. 40 of the Company Statute.

Relevant events after the end of the financial year 2021

In the first months of 2022, technological and commercial development initiatives in healthcare continued, in collaboration with leading pharmaceutical companies, universities, research centres and reference companies in the hospital world. In particular, a big effort has been spent in the evolution of pathology detection systems from the analysis of biometric data with Artificial Intelligence.

In these, as in other innovative projects under development, Neosperience employs sophisticated Machine Learning techniques that are gradually incorporated into the Neosperience Health Cloud platform. The latter, also thanks to the support of the PNRR plan, is intended to provide a key contribution to the world of public and private health, assisting remote diagnosis and telemedicine assisted by the AI, as well as improving the care of chronic patients and the elderly, reducing costs for the community.

Also at the beginning of 2022, the purchase of the remaining 49% of Workup S.r.l. was completed, as well as an agreement was reached with the shareholders of Myti S.r.l. to acquire the 49% still in their possession, an operation that will be completed during the first half of 2022.

In March 2022, the minority shareholding held by Neosperience in Neosurance S.r.l. was also reduced to facilitate the entry of a controlling industrial partner (see Press Release of 29 March 2022); this is a transaction whose details have not yet been made public but which has a strong strategic value for Neosurance; in addition, the deal has been completed at values higher than the historic cost for Neosperience.

Considerations relating to the Russia-Ukraine crisis and the Covid-19 emergency

In relation to the possible impacts of the ongoing war between Russia and Ukraine, the Company confirms that no significant impacts on current operations are expected.

The persistence of Covid-19 in 2021 and its subsequent manifestation in waves has inevitably influenced the activities of the group; on one hand, it has slowed down the initiatives aimed at developing foreign markets, both those in which it was planned to operate directly, such as the USA and China, with the NSP subsidiaries USA and Value China, and those in which explorations are still underway to develop commercial activity through partnerships or direct presence; on the other hand, the strong acceleration of digital transformation processes in Italy, increasingly necessary for most companies, has favored the opportunity to increase the dissemination of the group's solutions.

Convening of the Ordinary and Extraordinary Shareholders' Meeting

The Board of Directors decided to convene the Ordinary and Extraordinary Shareholders' Meeting at the registered office of the Company in Via Orzinuovi 20 in Brescia on 29 April 2022, at 17.00, on first call and on 16 May 2022, at 17.00, on second call, to discuss and resolve on the following items on the agenda:

Ordinary agenda

    1. Approval of the financial statements as of 31 December 2021 and of the consolidated financial statements as of 31 December 2021; related and consequent resolutions;
    1. Authorization for the purchase and disposal of treasury shares, in accordance with the laws and regulations in force; related and consequent resolutions.

Extraordinary agenda

  1. Attribution to the Board of Directors of a proxy, pursuant to art. 2443 of the Civil Code, to increase Neosperience share capital, in one or more times, for a maximum of Euro 150,000 (one hundred and fifty thousand), plus share premium, by issuing ordinary shares of the Company, also with the exclusion of the right of option pursuant to art. 2441, paragraphs 4, first part, 5, 6 and 8 of the Civil Code reserved for one or more strategic partners and/or acquisitions and/or incentive plans. Related and consequent resolutions.

***

Neosperience is an innovative SME listed on Euronext Growth Milan that operates as a software vendor. Recently named by Gartner as the only Italian company among the six most innovative software companies in the world, together with Adobe, Salesforce and SAS, Neosperience was 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: a proprietary software platform based on advanced digital solutions that allows companies to offer their customers an 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 client companies 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 | [email protected] | +39 335 7447604

IR Top Consulting

| [email protected] | + 39 02 4547 3883/4 |

EURONEXT GROWTH ADVISOR CFO SIM S.p.A. | [email protected] | +39 02 303431

MEDIA RELATIONS Close to Media

Adriana Liguori | [email protected] | +39 345 1778974 Lucia Nappa | [email protected] | +39 3371079749

SPECIALIST

MiT Sim S.p.A.

Gianni Eusebio | [email protected] | + 39 02 305 61 276 Andrea Scarsi | [email protected] | + 39 02 305 61 276

Group Income Statement

Group Income Statement
31.12.2021
Group Income
31.12.2020
Group Income
Delta
Statements Statements
Sales Revenues 18.153.423 16.367.101 1.786.322
Changes in inventories of work in progress 256.778 94.093 162.685
Work performed by entity and capitalised 1.903.131 2.081.933 (178.802)
Other income 395.266 1.009.321 (614.055)
VALUE OF PRODUCTION 20.708.598 19.552.448 1.156.150
Raw material and services used (7.420.879) (7.683.613) 262.734
VALUE ADDED 13.287.719 11.868.835 1.418.884
Employee benefit expense (7.010.380) (5.676.809) (1.333.571)
Other expenses (238.542) (887.911) 649.369
Changes in inventories of work in progress (94.093) (474.375) 380.282
EBITDA 5.944.704 4.829.740 1.114.964
Depreciation and amortisation expense (4.464.770) (4.016.347) (448.423)
EBIT 1.479.934 813.393 666.541
Finance costs (379.200) (104.493) (274.707)
Depreciation of Investements 0 214.490 (214.490)
Depreciation of Financial Assets 0 0 0
PROFIT/LOSS BEFORE TAX
Income tax expense
1.100.734
(321.378)
923.390
(514.266)
177.344
192.888
PROFIT/LOSS FOR THE PERIOD 779.356 409.124 370.232
Profit/Loss attributable to minority interests 182.130 148.825 33.305
PROFIT/LOSS OF THE GROUP 597.226 260.299 336.927
EBITDA % 32,7% 29,5% 3,2%
EBIT % 8,2% 5,0% 3,2%
Profit/Loss Before Tax % 6,1% 5,6% 0,4%
Profit/Loss For The Period % 4,3% 2,5% 1,8%

Consolidated Balance Sheet

Consolidated Balance Sheet
31.12.2021
Consolidated
Balance Sheet
inc. % 31.12.2020
Consolidated
Balance Sheet
inc. % Delta
NON-CURRENT ASSETS
Fixed Intangible Assets 21.270.681 44% 17.422.999 46% 3.847.682
Fixed Tangible Assets 3.022.309 6% 576.180 2% 2.446.129
Investements in associates 1.314.043 3% 982.858 3% 331.185
Other non-current credits 260.284 1% 200.114 1% 60.170
Other non-current Financial credits 9.028 0% 255 0% 8.773
Prepaid Taxes 155.966 0% 148.632 0% 7.334
TOTAL NON-CURRENT ASSETS 26.032.311 54% 19.331.038 51% 6.701.273
CURRENT ASSETS
Inventories 256.778 1% 94.093 0% 162.685
Trade recivables 8.102.340 17% 8.002.033 21% 100.307
Trade recivables from associates 3.375.515 7% 485.635 1% 2.889.880
Tax credits 590.064 1% 1.734.145 5% (1.144.081)
Other current credits 965.034 2% 1.402.231 4% (437.197)
Trading assets 152.450 0% 140.463 0% 11.987
Cash and Equivalents 8.461.078 18% 6.502.710 17% 1.958.368
TOTAL CURRENT ASSETS 21.903.259 46% 18.361.310 49% 3.541.949
TOTAL ASSETS 47.935.570 100% 37.692.348 100% 10.243.222
EQUITY
Shareholders Capital 872.216 2% 750.520 2% 121.696
Share Premium Reserve 18.439.318 38% 12.671.710 34% 5.767.608
Legal Reserve 131.165 0% 105.395 0% 25.770
Statutory Reserve 2.358.859 5% 1.869.223 5% 489.636
Negative reserve for treasury shares in portfolio (306.587) -1% (92.966) 0% (213.621)
Other Reserves 552.594 1% 529.515 1% 23.079
Consolidation Reserve (53.904) 0% (53.904) 0% -
Retained Earnings 56.813 0% 997 0% 55.816
Net income of the year 597.226 1% 260.299 1% 336.927
Minority interests 627.283 1% 697.295 2% (70.012)
TOTAL EQUITY 23.274.983 49% 16.738.084 44% 6.536.899
NON-CURRENT LIABILITES
Employees Benefits 1.292.219 3% 1.047.659 3% 244.560
Provisions for risks and charges 28.393 0% 58.418 0% (30.025)
Non-current Financial Debts 12.587.127 26% 10.763.689 29% 1.823.438
Non-current Tax Payables - 0% 333.047 1% (333.047)
Other non-current Payables - 0% 0% -
TOTAL NON-CURRENT LIABILITES 13.907.739 29% 12.202.813 32% 1.704.926
CURRENT LIABILITIES
Current Financial Debts 3.004.569 6% 1.266.472 3% 1.738.097
Deposits - 0% - 0% -
Accounts Payables 2.801.238 6% 3.958.374 11% (1.157.136)
Tax Payables 1.319.006 3% 1.375.885 4% (56.879)
Other Payables 3.107.589 6% 1.761.215 5% 1.346.374
Accruals and Deferred Income 520.446 1% 389.505 1% 130.941
10.752.848 22%
TOTAL CURRENT LIABILITIES 8.751.451 23% 2.001.397

Net Financial Position

Net Financial Position
31.12.2021 30.06.2021 31.12.2020
Consolidated
Balance Sheet
Consolidated
Balance Sheet
Consolidated
Balance Sheet
A.
Cash at the bank
(8.461.078) (7.112.972) (6.502.710)
B.
Cash equivalents
C.
Other current financial assets
(151.669) (139.669) (140.463)
D.
Liquid assets` (A) + (B) + (C)
(8.612.747) (7.252.641) (6.643.173)
E.
Current financial credit
F.
Current financial debt
2.080.874 1.495.290 1.018.467
G.
Current portion of non-current financial debt
H.
Other non-current financial debt
923.695 573.571 248.005
I.
Current financial debt (F) + (G) + (H)
3.004.569 2.068.861 1.266.472
J.
Net current financial debt (I) + (E) + (D)
(5.608.178) (5.183.780) (5.376.701)
K.
Non-current financial debt
8.409.567 8.333.005 7.657.284
L.
Debt instruments
2.182.638 2.515.284 2.840.826
M.
Trade payables and other non-current payables
1.994.922 221.756 265.579
N.
Non-current financial debt (K) + (L) + (M)
12.587.127 11.070.045 10.763.689
O.
Total financial debt (J) + (N)
6.978.949 5.886.265 5.386.988
A. Cash flows deriving from operating activities (indirect method) 31.12.2021 31.12.2020
Profit (loss) for the year 779.356 409.124
Income taxes
Interest expense/(assets)
321.378
379.200
514.266
104.493
(Dividends)
Capital gains / losses on disposed assets
1. ) Profit (loss) for the year before income taxes, interest, dividends and capital gains / losses on disposal 1.479.934 1.027.883
Adjustments for non-monetary items not included in net working capital
Provisions to funds
408.940 217.684
Depreciation of fixed assets
Non monetary adjustments of financial assets
4.420.435
23.071
4.005.717
(26.751)
Write-downs / (revaluations) of financial assets
Other adjustments for non-monetary items
227.723 (214.390)
(256.112)
2. Cash flow before change in net working capital 6.560.103 4.754.031
Change in net working capital
Decrease / (increase) in inventories
(162.685) 275.907
Decrease / (increase) in receivables from customers (2.990.187) (1.533.059)
Increase / (decrease) in trade payables from suppliers
Decrease / (increase) in accrued income and prepaid expenses
(1.157.136)
(245.820)
(1.408.438)
(275.595)
Increase / (decrease) in accrued liabilities and deferred income
Other changes in net working capital
130.941
2.624.953
360.891
2.035.659
3. Cash flow after change in net working capital 4.760.169 4.209.396
Other adjustments
Interest received / (paid)
(379.200) (104.493)
(Income taxes paid)
Dividends collected
(771.399) (141.799)
(Use of funds)
4.Cash flow after other adjustments
(120.045)
3.489.525
(103.801)
3.859.303
Operating Cash flow (A) 3.489.525 3.859.303
B. Cash flows deriving from the investment activity
Tangible fixed assets (2.160.303) (23.522)
(Investiments)
Sale price of divestments
(2.160.303) (23.522)
Intangible assets (7.982.291) (9.958.676)
(Investiments)
Sale price of divestments
(7.982.291) (9.958.676)
Financial assets (339.958) -
(Investiments)
Sale price of divestments
(339.958) -
-
Other financial assets (411.757) (445.771)
(Investiments) (11.206) (32.710)
(Increase) / Decrease in other assets / liabilities
Acquisition of subsidiaries net of cash and cash equivalents
(400.551)
(435.500)
(413.061)
2.559.171
Sale of subsidiaries net of cash and cash equivalents
Cash flows deriving from the investment activity (B)
(11.329.809) (7.868.798)
C. Cash flows deriving from the financing activity
Third party funds
Increase (decrease) in short-term bank position
New medium term financing
1.738.097
5.278.629
800.739
9.445.333
Reimbursement of loans (1.297.781) (1.122.544)
Equity
Paid-in capital increase
4.293.328 31.125
Sale (purchase) of own shares (213.621) (228.555)
Cash flows deriving from the financing activity (C) 9.798.652 8.926.098
1.958.368 4.916.603
Increase (decrease) in cash and cash equivalents (A ± B ± C)
Cash and cash equivalents (beginning of period) 6.502.710 1.586.107

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