Tinexta — Earnings Release 2021

Nov 10, 2021

Informazione Regolamentata n. 20053-88-2021		Data/Ora Ricezione 10 Novembre 2021 13:46:04	Euronext Star Milan
Societa'	:	TINEXTA
Identificativo Informazione Regolamentata	:	153937
Nome utilizzatore	:	TINEXTANSS01 - MASTRAGOSTINO
Tipologia	:	REGEM
Data/Ora Ricezione	:	10 Novembre 2021 13:46:04
Data/Ora Inizio Diffusione presunta	:	10 Novembre 2021 13:46:05
Oggetto	:	TINEXTA: growth in results at 30	September 2021, with an acceleration of digital transition and innovation activities
Testo del comunicato

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PRESS RELEASE

TINEXTA: growth in results at 30 September 2021, with an acceleration of digital transition and innovation activities

Tinexta's Board of Directors has approved the results at 30 September 2021:

• Revenues: €261.6 million, +38.5%
• Adjusted EBITDA: €63.3 million +11.2%
• EBITDA: €59,6 million, +7.3%
• Net profit: €28,1 million, +7.1%
• Free Cash Flow: €44.3 million (€58.4 million in the last twelve months at 30 September 2021)
• Operating Cash Flow: €70.1 million (€67.9 million at 30 September 2020)
• Net Financial Position: net debt of €191.6 million (€205.2 million at 30 June 2021)
• Guidance 2021 confirmed

* * * *

10 November 2021. The Board of Directors of Tinexta S.p.A., a leading provider of Digital Trust, Cyber Security, Credit Information & Management, and Innovation & Marketing Services, listed in the Euronext Star Milan segment, organized and managed by Borsa Italiana, today approved the Interim Report on Operations as at 30 September 2021. In the first nine months of 2021, Revenues amounted to Euro 261.6 million (+38.5%), adjusted EBITDA to Euro 63.3 million (+11.2%), EBITDA to Euro 59.6 million (+7.3%) and Net Profit to Euro 28.1 million (+7.1%).

The Chairman, Enrico Salza, commented: "We are satisfied with the excellent results achieved in the first nine months of the year, characterized by a significant growth in all the Group's divisions and by the signing of new agreements that increasingly consolidate Tinexta as a reference operator to support the digital transformation processes of the business system in Italy and gradually in Europe".

The Chief Executive Officer, Pier Andrea Chevallard, commented: "We have approved an extremely positive quarterly report, which confirms, among other things, the soundness of the strategic acquisitions made last year, in particular in the Cybersecurity segment, which proved, as we expected, to be synergistic with the activities and services of the Group's other divisions. We continue to look to the medium and long-term development of our Group. In recent weeks we have announced new extraordinary operations with the aim

of further strengthening Tinexta in the world of digital transition in Italy, also thanks to the ForValue network and to the partnership with Intesa. With InfoCert, we are aiming to become a leading Digital Trust operator in Europe. The results of the first nine months of the year allow us to confirm the growth objectives shared with the market and to face the coming months with new challenging objectives".

Summary income statement data (€ '000) 30/09/2021 30/09/20201 Change Change % Revenues 261,558 188,901 72,657 38.5% Adjusted EBITDA 63,332 56,939 6,393 11.2% EBITDA 59,616 55,572 4,043 7.3% Adjusted operating profit 45,724 42,827 2,897 6.8% Operating profit 38,392 36,980 1,411 3.8% Adjusted net profit 29,585 28,431 1,154 4.1% Net profit 28,124 26,251 1,873 7.1% Free cash flow 44,261 52,556 -8,295 -15.8%

CONSOLIDATED GROUP FINANCIAL RESULTS AS AT 30 SEPTEMBER 2021

The Group closed the first nine months of 2021 with Revenues of Euro 261.6 million. Adjusted EBITDA amounted to Euro 63.3 million, or 24.2% of revenues. EBITDA amounted to Euro 59.6 million. Operating profit and net profit amounted to Euro 38.4 million and Euro 28.1 million, representing 14.7% and 10.8% of Revenues.

Revenues are up by 38.5% compared to the first nine months of 2020, adjusted EBITDA is up by 11.2%, EBITDA is up by 7.3%, Operating profit is up by 3.8% and Net profit is also up by 7.1%.

The results for the period include contributions from the acquisitions: Corvallis S.r.l., Yoroi S.r.l., Queryo Advance S.r.l. (consolidated from 1 January 2021), Swascan S.r.l. (consolidated from 1 October 2020), Euroquality S.A.S. and Europroject O.O.D. (consolidated from 31 December 2020), Trix S.r.l. (established at the end of December 2020), Tinexta Cyber S.p.A. (established in January 2021) and ForValue S.p.A. (consolidated from 1 July 2021). The contributions from these companies are shown below as a change in the scope of consolidation.

¹The comparative data at 30 September 2020 have been restated in relation to the completion, in the fourth quarter of 2020, of the identification activities of the fair values of the assets and liabilities of PrivacyLab S.r.l., consolidated on a line-by-line basis from 1 January 2020.

Income Statement in the first nine months of 2021 compared with the same period of the previous year.

Consolidated Income Statement (€ '000)	30/09/2021	%	30/09/2020	%	Change	% change
Revenues*	261,558	100.0%	188,827	100.0%	72,731	38.5%
Total Operating Costs*	198,226	75.8%	131,888	69.8%	66,338	50.3%
Costs of raw materials	8,469	3.2%	6,602	3.5%	1,867	28.3%
Service costs	81,697	31.2%	58,116	30.8%	23,581	40.6%
Personnel costs	101,041	38.6%	60,473	32.0%	40,568	67.1%
Contract costs	5,506	2.1%	5,361	2.8%	145	2.7%
Other operating costs	1,512	0.6%	1,336	0.7%	176	13.2%
Adjusted EBITDA	63,332	24.2%	56,939	30.2%	6,393	11.2%
Stock Option cost**	1,954	0.7%	482	0.3%	1,472	305.2%
Non-recurring components	1,763	0.7%	885	0.5%	878	99.3%
EBITDA	59,616	22.8%	55,572	29.4%	4,043	7.3%
Amortisation and depreciation	19,219	7.3%	16,101	8.5%	3,118	19.4%
Provisions	1,050	0.4%	426	0.2%	624	146.2%
Impairment	955	0.4%	2,064	1.1%	-1,110	-53.8%
Operating Profit	38,392	14.7%	36,980	19.6%	1,411	3.8%
Financial income	124	0.0%	1,340	0.7%	-1,216	-90.7%
Financial charges	3,001	1.1%	2,101	1.1%	900	42.8%
Net financial charges	2,877	1.1%	761	0.4%	2,116	278.0%
Profit of equity-accounted investments	-240	-0.1%	88	0.0%	-329	-371.6%
Profit before tax	35,275	13.5%	36,307	19.2%	-1,033	-2.8%
Income taxes	7,151	2.7%	10,057	5.3%	-2,906	-28.9%
Net profit	28,124	10.8%	26,251	13.9%	1,873	7.1%
of which minority interests	643	0.2%	280	0.1%	363	129.6%

* Revenues and Operating Costs are stated net of non-recurring components and net of the cost relating to the Stock Option Plans and other longterm incentive plans reserved for the Group's key managers (both recognized under "Personnel costs").

** The Stock Option Cost includes the cost of other long-term incentive plans reserved for the Group's key managers.

Revenues increased from Euro 188.8 million in the first nine months of 2020 to Euro 261.6 million in the first nine months of 2021. The increase in revenue attributable to the change in the scope of consolidation was 30.9% (Euro 58.3 million), organic growth was 7.6% (Euro 14.4 million).

Operating costs increased from Euro 131.9 million in the first nine months of 2020 to Euro 198.2 million in the first nine months of 2021. The increase is attributable to the change in the scope of consolidation for 37.9% (Euro 50.0 million), the remaining 12.4% is attributable to organic growth (Euro 16.3 million).

Adjusted EBITDA increased from Euro 56.9 million in the first nine months of 2020 to Euro 63.3 million in the first nine months of 2021, with an increase of Euro 6.4 million or 11.2%. The increase in adjusted EBITDA attributable to the change in the scope of consolidation was 14.5% (Euro 8.3 million), the organic decrease was 3.3% (Euro 1.9 million).

EBITDA increased from Euro 55.6 million in the first nine months of 2020 to Euro 59.6 million in the first nine months of 2021, with an increase of Euro 4.0 million or 7.3%. The increase in EBITDA attributable to the change in the scope of consolidation was 13.2% (Euro 7.3 million), the organic contraction was 5.9% (Euro 3.3 million).

Amortisation, depreciation and provisionsinclude Euro 3.6 million of amortisation of other intangible assets arising from the allocation of the price paid in the Business Combinations (Euro 4.5 million in the first nine months of 2020), mainly of Warrant Hub, Visura and Innolva.

Net financial costs for the first nine months of 2021 amounted to Euro 2.9 million and compare themselves with Net financial costs in the same period of 2020 of Euro 0.8 million. The increase in Net financial charges is affected by the non-recurring income recognized in the first nine months of 2020 for the renegotiation of loans amounting to Euro 1.1 million. The further increase in financial charges is attributable to the increase in bank debt to support the acquisitions made and to higher costsfor adjustment of contingent consideration on acquisitions for Euro 0.4 million.

Taxes, calculated on the basis of the ratesset for the year by current legislation, amounted to Euro 7.2 million (compared to Euro 10.1 million in the first nine months of 2020). The tax rate was 20.3% (27.7% in the first nine months of 2020), due to a non-recurring tax income of Euro 3.6 million arising from the redemption of statutory/fiscal value differentials, as well as an income of Euro 0.8 million deriving from the rebate of the first advance payment on IRAP for 2020, recognized as a result of the extension of the cap to the benefit provided by Decree-Law 41/2021, the so-called "Support Decree". Also in the first nine months of 2020 the Group benefited from non-recurring tax income of Euro 1.1 million.

Net profit forthe first nine months of 2021 is equal to Euro 28.1 million (of which Euro 0.6 million attributable to minority interests), compared to Euro 26.3 million in the first nine months of 2020.

Free Cash Flow in the first nine months of 2021 amounted to Euro 44.3 million. Free Cash Flow decreased by 15.8% compared to the first nine months of 2020 (Euro 52.6 million) mainly due to higher taxes paid (Euro 15.2 million at 30 September 2021 compared to Euro 6.5 million at 30 September 2020).

The Free Cash Flow generated in the last twelve months at 30 September 2021 is equal to Euro 58.4 million.

Adjusted Group Results

The adjusted income statement results are calculated gross of non-recurring components, of the cost relating to Stock Option Plans and other long-term incentive plans reserved for the Group's key managers, of the amortisation of other intangible assets arised at the time of allocation of the price paid in the business combinations and of the adjustment of liabilities for contingent consideration linked to acquisitions, net of the related tax effects. These indicators reflect the Group's economic performance, net of non-recurring factors not strictly related to the activities and management of the "core business".

Adjusted Income Statement (€ '000)	30/09/2021	%	30/09/2020	%	Change	% change
Adjusted revenues	261,558	100.0%	188,827	100.0%	72,731	38.5%
Adjusted EBITDA	63,332	24.2%	56,939	30.2%	6,393	11.2%
Adjusted operating profit	45,724	17.5%	42,827	22.7%	2,897	6.8%
Adjusted net profit	29,585	11.3%	28,431	15.1%	1,154	4.1%

Adjusted results, compared to the first nine months of 2020, show an increase in revenues of 38.5%, in EBITDA of 11.2%, in Operating profit of 6.8% and in Net profit of 4.1%.

Non-recurring components

Over the course of the first nine months of 2021, Non-recurring operating costs of Euro 1.8 million were recognized for acquisitions of target companies.

Non-recurring taxes include non-recurring income totalling Euro 4.6 million, mainly related to the redeeming of statutory/fiscal value differentials and to IRAP benefits provided by the so-called "Support Decree".

In the first nine months of 2020, non-recurring revenues of Euro 0.1 million, non-recurring operating costs of Euro 1.0 million, non-recurring financial income of Euro 1.1 million and non-recurring tax income of Euro 1.0 million were recognized.

Stock Option cost

The costs, amounting to Euro 1.9 million, refer to the 2020-2022 Stock Option Plan, to the 2021-2023 Stock Option Plan and to other long-term incentive plans reserved for the Group's Key managers.

Amortisation of Other intangible assets from Business Combinations

The amortisation of Other intangible assets arised at the time of allocation of the price paid in Business Combinations is equal to Euro 3.6 million (Euro 4.5 million in the same period of the previous year).

Adjustment of the contingent considerations connected to acquisitions

Adjustments of potential consideration related to acquisitions resulted in the recognition of net financial expenses of Euro 0.2 million (in the same period of the previous year financial income amounted to Euro 0.2 million).

RESULTS BY BUSINESS SEGMENT

Adjusted income statement results by business segment.

Adjusted condensed Income Statement		% EBITDA		% EBITDA			% change
by business segment	30/09/2021	30/09/2021	30/09/2020	30/09/2020	Change	Total	Organic	Scope of consolidation
Revenues
Digital Trust	93,224		83,050		10,174	12.3%	12.3%	0.0%
Cybersecurity	51,473		0		51,473	n.a.	0.0%	n.a.
Credit Information & Management	56,954		55,848		1,106	2.0%	-0.6%	2.5%
Innovation & Marketing Services	61,262		50,758		10,503	20.7%	8.7%	12.0%
Other Segments (Parent Company)	1,836		1,599		237	14.8%	14.8%	0.0%
Intra-segment	-3,191		-2,429		-763	31.4%	3.3%	28.1%
Total adjusted revenues	261,558		188,827		72,731	38.5%	7.6%	30.9%
EBITDA
Digital Trust	24,223	26.0%	21,992	26.5%	2,230	10.1%	10.1%	0.0%
Cybersecurity	5,818	11.3%	0	n.a.	5,818	n.a.	0.0%	n.a.
Credit Information & Management	16,338	28.7%	17,585	31.5%	-1,247	-7.1%	-8.1%	1.0%
Innovation & Marketing Services	24,986	40.8%	23,592	46.5%	1,394	5.9%	-3.6%	9.6%
Other Segments (Parent Company)	-8,033	n.a.	-6,230	n.a.	-1,802	- 28.9%	-28.9%	0.0%
Total adjusted EBITDA	63,332	24.2%	56,939	30.2%	6,393	11.2%	-3.3%	14.5%

	3rd	% EBITDA	3rd	% EBITDA				% change
Adjusted condensed Income Statement by business segment	quarter 2021	3rd quarter 2021	quarter 2020	3rd quarter 2020	Change	Total	Organic	Scope of consolidation
Revenues
Digital Trust	29,606		27,691		1,916	6.9%	6.9%	0.0%
Cybersecurity	16,850		0		16,850	n.a.	0.0%	n.a.
Credit Information & Management	18,248		20,575		-2,327	-11.3%	-18.2%	6.9%
Innovation & Marketing Services	19,598		17,058		2,539	14.9%	2.9%	12.0%
Other Segments (Parent Company)	658		540		119	22.0%	22.0%	0.0%
Intra-segment	-1,216		-780		-436	55.9%	1.3%	54.6%
Total adjusted revenues	83,745		65,083		18,661	28.7%	-1.9%	30.6%
EBITDA
Digital Trust	8,619	29.1%	8,030	29.0%	589	7.3%	7.3%	0.0%
Cybersecurity	2,331	13.8%	0	n.a.	2,331	n.a.	0.0%	n.a.
Credit Information & Management	4,914	26.9%	7,430	36.1%	-2,516	-33.9%	-36.3%	2.4%
Innovation & Marketing Services	7,853	40.1%	8,640	50.7%	-787	-9.1%	-14.8%	5.7%
Other Segments (Parent Company)	-2,672	n.a.	-2,064	n.a.	-608	-29.5%	-29.5%	0.0%
Total adjusted EBITDA	21,045	25.1%	22,036	33.9%	-992	-4.5%	-18.1%	13.6%

Digital Trust

Adjusted revenues of the Digital Trust segment amounted to Euro 93.2 million. The increase compared to the first nine months of 2020 is equal to 12.3% (Euro 10.2 million). The increase in demand for digital and dematerialisation services continued in the first nine months of 2021,supporting both the growth ofstandard products - such as Certified Electronic Mail (Legalmail) and ature (LegalCert), - and an increase in Off the Shelf revenues (Telematic Trust Solutions). The growth of SPID product (Sistema Pubblico di Identità Digitale, Public Digital Identity System) continues. Revenues from Enterprise Solutions also increased, due to both the consolidation of existing projects and new commercial initiatives. The Group continues to develop its digital onboarding offering, which enables it to guarantee its customers remote work continuity with high standards of security and functionality.

The segment's adjusted EBITDA amounted to Euro 24.2 million. The increase compared to the first nine months of 2020 is 10.1% (Euro 2.2 million). EBITDA margin is 26.0% compared to 26.5% for the first nine months of 2020.

Cyber Security

Adjusted revenues of the Cybersecurity segment amounted to Euro 51.5 million and adjusted EBITDA to Euro 5.8 million. The EBITDA margin is 11,3%. The results achieved by the BU in the first nine months of 2021 are in line with expectations, both in terms of business volume developed and margins. The BU is developing both initiatives related to project activities and to the provision of dedicated services, starting to seize the market opportunities offered in a context of increasing integration among both BU and Group companies.

Credit Information & Management

In the Credit Information & Management segment, adjusted revenues amounted to Euro 57.0 million, with an increase of 2.0% compared to the first nine months of 2020 (Euro 1.1 million). The number of cases managed in relation to access to the Central Guarantee Fund remained high during the first nine months of 2021, recording a small contraction compared to the same figure of 2020. At the same time, there was a

recovery in estimated real estate services for the main national banking groups and an increase in Business Information activities, which overcame the contraction in 2020 caused by the health emergency.

Adjusted EBITDA decreased by 7.1% compared to the same period last year to Euro 16.3 million, with an EBITDA margin of 28.7% compared to 31.5% in the first nine months of 2020. The reduction in margins can be attributed to the higher volume of activity in the previous year due to companies' recourse to the Central Guarantee Fund.

Innovation & Marketing Services

Adjusted revenue for the Innovation & Marketing Services segment amounted to Euro 61.3 million, an increase of 20.7% (Euro 10.5 million) over the first nine months of 2020, of which 8.7% is attributable to organic growth and the remainder to external growth (12.0%), due to the consolidation from 1 January 2021 of Euroquality SAS, Europroject OOD, Queryo Advance S.r.l. and Trix S.r.l. The companiesin the BU developed innovative services and products, increasing the business volume generated through an increase in cases managed and the acquisition of new clients, with a resumption of internationalization services, an increase in innovation consultancy services, as well as the launch of activities related to Digital Marketing consulting.

The segment's adjusted EBITDA amounted to Euro 25,0 million. There was a 5.9% increase over the EBITDA for the first nine months of 2020. The growth due to the change in the scope of consolidation was 9.6%, while the organic contraction accounted for 3.6%. The EBITDA margin is 40.8% compared to 46.5% in the first nine months of 2020. The reduction in margins is attributable to the temporary reduction in tax rates and caps on tax credits.

SUMMARY OF RESULTS FOR THE THIRD QUARTER OF 2021

The Group closed the third quarter of 2021 with Revenues of Euro 83.7 million. EBITDA amounted to Euro 19.3 million, or 23.1% ofrevenues. Operating profit and net profit respectively amounted to Euro 12.0 million and Euro 7.5 million, equal to 14.3% and 8.9% of revenues.

Condensed Consolidated Income Statement (€ '000)	3rd quarter 2021	%	3rd quarter 20202	%	Change	% change
Revenues	83,745	100.0%	65,083	100.0%	18,661	28.7%
Adjusted EBITDA	21,045	25.1%	22,036	33.9%	-992	-4.5%
EBITDA	19,345	23.1%	21,160	32.5%	-1,815	-8.6%
Operating profit	11,989	14.3%	15,404	23.7%	-3,415	-22.2%
Net profit	7,482	8.9%	10,315	15.8%	-2,832	-27.5%

Revenuesincreased by Euro 18.7 million (or 28.7%) compared to the third quarter of 2020, EBITDA decreased by Euro 1.8 million (or 8.6%), Operating profit decreased by Euro 3.4 million (or 22.2%) and Net profit by Euro 2.8 million (or 27.5%).

The results for the period include contributions from the acquisitions: Corvallis S.r.l., Yoroi S.r.l., Queryo Advance S.r.l. (consolidated from 1 January 2021), Swascan S.r.l. (consolidated from 1 October 2020), Euroquality S.A.S. and Europroject O.O.D. (consolidated from 31 December 2020), Trix S.r.l. (established at the end of December 2020), Tinexta Cyber S.p.A. (incorporated in January 2021) and ForValue S.p.A. (consolidated from 1 July 2021). The contributions from these companies is reported below as a change in the scope of consolidation.

²The comparative data for the third quarter of 2020 were restated in relation to the completion, in the fourth quarter of 2020, of the identification activities of the fair values of the assets and liabilities of PrivacyLab S.r.l., consolidated on a line-by-line basis from 1 January 2020.

Income Statement for the third quarter of 2021 compared with the same period of the previous year.

Consolidated Income Statement (€ '000)	3rd quarter 2021	%	3rd quarter 2020	%	Change	% change
Revenues	83,745	100.0%	65,083	100.0%	18,661	28.7%
Total Operating Costs*	62,700	74.9%	43,047	66.1%	19,653	45.7%
Costs of raw materials	2,499	3.0%	2,088	3.2%	411	19.7%
Service costs	26,700	31.9%	18,737	28.8%	7,963	42.5%
Personnel costs	31,491	37.6%	20,272	31.1%	11,219	55.3%
Contract costs	1,456	1.7%	1,529	2.3%	-73	-4.8%
Other operating costs	554	0.7%	421	0.6%	133	31.6%
Adjusted EBITDA	21,045	25.1%	22,036	33.9%	-992	-4.5%
Stock Option cost**	1,051	1.3%	444	0.7%	608	137.0%
Non-recurring components	648	0.8%	433	0.7%	215	49.7%
EBITDA	19,345	23.1%	21,160	32.5%	-1,815	-8.6%
Amortisation and depreciation	6,466	7.7%	5,503	8.5%	963	17.5%
Provisions	606	0.7%	66	0.1%	540	815.5%
Impairment	284	0.3%	187	0.3%	98	52.3%
Operating profit	11,989	14.3%	15,404	23.7%	-3,415	-22.2%
Financial income	41	0.0%	389	0.6%	-348	-89.4%
Financial charges	1,125	1.3%	731	1.1%	394	53.8%
Net financial charges	1,083	1.3%	342	0.5%	742	217.0%
Profit of equity-accounted investments	-60	-0.1%	-3	0.0%	-57	2031.2%
Profit before tax	10,846	13.0%	15,060	23.1%	-4,214	-28.0%
Income taxes	3,363	4.0%	4,745	7.3%	-1,382	-29.1%
Net profit	7,482	8.9%	10,315	15.8%	-2,832	-27.5%
of which minority interests	362	0.4%	79	0.0%	283	356.4%

* Revenues and Operating Costs are stated net of non-recurring components and net of the cost relating to the Stock Option Plans and other longterm incentive plans reserved for the Group's key managers (both recognized under "Personnel costs").

** The Stock Option Cost includes the cost of other long-term incentive plans reserved for the Group's key managers.

Adjusted Group Results

Adjusted Income Statement (€ '000)	3rd quarter 2021	%	3rd quarter 2020	%	Change	% change
Adjusted revenues	83,745	100.0%	65,083	100.0%	18,661	28.7%
Adjusted EBITDA	21,045	25.1%	22,036	33.9%	-992	-4.5%
Adjusted operating profit	14,653	17.5%	17,774	27.3%	-3,121	-17.6%
Adjusted net profit	9,159	10.9%	11,764	18.1%	-2,605	-22.1%

Adjusted results, compared to the third quarter of 2020, show an increase in revenue of 28.7%, a decrease in EBITDA of 4.5%, in Operating profit of 17.6% and in Net profit of 22.1%.

GROUP NET FINANCIAL INDEBTEDNESS

Net Financial Indebtedness at 30 September 2021 amounted to Euro 191.6 million, with an increase of Euro 99.7 million compared to 31 December 2020. This increase was mainly due to the acquisitions made in the first nine months, as well asthe distribution of dividends, offset by sustained operating cash flow generation.

Change in financial indebtedness in the first nine months of 2021 compared to the first nine months of 2020 and to the last 12 months to 30 September 2021.

€ '000	30/09/2021	30/09/2020	Last 12 months at 30 September 2021
Net financial indebtedness - opening balance	91,882	129,138	93,409
Free cash flow	-44,261	-52,556	-58,413
Net financial (income) charges	2,877	761	3,581
Approved dividends	12,573	2,195	12,573
New leases and adjustments to existing contracts	1,564	711	2,127
Acquisitions	110,140	1,821	132,477
Disposals	0	0	-12,000
Adjustment of put options	11,760	444	12,642
Purchase of treasury shares	5,994	10,001	5,994
OCI derivatives	-454	717	-352
Other residual	-465	177	-427
Net financial indebtedness - closing balance	191,611	93,409	191,611

The Free Cash Flow generated in the first nine months amounted to Euro 44.3 million (Euro 52.6 million in the first nine months of 2020): Euro 54.9 million in Net cash from operating activities, net of Euro 10.6 million absorbed by investments in property, plant and equipment and intangible assets.

The dividends approved amounted to Euro 12.6 million, of which Euro 12.0 million from Tinexta S.p.A. (Euro 0.1 million not distributed) and Euro 0.6 million from Group companies to minority shareholders.

New leasing contracts and contract adjustments resulted in a total increase in financial debt of Euro 1.6 million.

Details of the Acquisitions with related impact on Net financial indebtedness at the date of the respective closing.

Details of NFI impacts for Acquisitions in thousands of €
Corvallis S.r.l.	56,049
Yoroi S.r.l.	38,567
Queryo Advance S.r.l.	15,744
Forvalue S.p.A.	-1,330
Investments in equity-accounted shareholdings	1,110
Total	110,140

The Put option adjustment amounts to Euro 11,8 million due to the increase in the expected results of the companies concerned, as well as the revaluation due to the passage of time.

During the year, the Parent Company Tinexta S.p.A. purchased 254.133 treasury shares (equal to 0.538% of the share capital), for a purchase price of Euro 6.0 million.

FORESEEABLE OUTLOOK FOR OPERATIONS

In light of the results for the first nine months, which are substantially in line with expectations at the beginning of the year, the Board of Directors confirms, on a like-for-like basis, consolidated revenues for around Euro 370 million and consolidated adjusted EBITDA of approximately Euro 96 million. NFP/ Adjusted EBITDA ratio (on a like-for-like basis in the first nine months) is expected to be around 2x at the end of 2021.

* * * * * The manager in charge of drafting the corporate accounting documents, Nicola Di Liello, declares, pursuant to Art. 154-bis, paragraph 2 of the Consolidated Finance Act, that the information contained in this press release corresponds to the documentary findings, books and accounting records.

* * * * *

The Interim Report on Operations at 30 September 2021 will be made available to the public within the legal terms, at the company's registered office (Piazza Sallustio, 9, 00187 Rome) on the authorized storage mechanism eMarket STORAGE (www.emarketstorage.com) and on the Company's website: http://tinexta.com/bilanci-relazioni-presentazioni.

CONFERENCE CALL

The Company will present its Consolidated Results as at 30 September 2021 in a Conference Call to be held at 3:00 pm (CET) today. Investors and analysts interested in participating are invited to call the following numbers: Italy: +39 02 805 8811; UK: +44 121 281 8003; USA: +1 718 705 8794; 1 855 2656959 (toll-free). For further information please contact the Investor Relations Office.

* * * * *

Attached: Consolidated Statements of Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Cash Flow Statement and Group Total financial indebtedness as at 30 September 2021.

TINEXTA S.p.A.

Tinexta, listed on the STAR segment of the Milan Stock Exchange, reported the following consolidated results as of 31 December 2020: revenues of Euro 269.1 million, EBITDA of Euro 77.9 million and net profit of Euro 37.9 million. Tinexta Group is one of Italy's leading operators in its four business areas: Digital Trust, Cyber Security, Credit Information & Management, Innovation & Marketing Services. The Digital Trust Business Unit provides, through the companiesInfoCert S.p.A., Visura S.p.A., Sixtema S.p.A. and the Spanish company Camerfirma S.A., products and services for digitisation, electronic invoicing and certified e-mail (PEC) for large companies, banks, insurance and financial companies, SMEs, associations and professionals. The Cyber Security Business Unit operates through the companies Yoroi, Swascan and Corvallis and constitutes one of the national poles in the research and provision of the most advanced solutions for data protection and security. In the Credit Information & Management Business Unit, Innolva S.p.A. and its subsidiaries offer services to support decision-making processes (Chamber of Commerce and real estate information, aggregated reports, synthetic ratings, decision-making models, credit assessment and recovery) while RE Valuta offers real estate services (appraisals and evaluations). In the Innovation & Marketing Services Business Unit, Warrant Hub S.p.A. is a leader in consultancy in grants, loans and tax relief as well asindustrial innovation, while Co.Mark S.p.A. provides Temporary Export Management consultancy to SMEs to support them in their commercial expansion. As of 31 December 2020, the Group had 1,403 employees.

CONTACTS

Chief Investor Relations Officer	Media Advisor	Specialist
Josef Mastragostino	Barabino & Partners S.p.A.	Intermonte SIM S.p.A.
investor@tinexta.com	Foro Buonaparte, 22 - 20121 Milano	Corso V. Emanuele II, 9 - 20122 Milan
Chief External Relations & Communication	Tel.: +39 02 7202 3535	Tel.: +39 02 771151
Officer	Stefania Bassi: +39 335 6282 667
Alessandra Ruzzu	s.bassi@barabino.it
alessandra.ruzzu@tinexta.com
Press Office
Carla Piro Mander
Tel. +39 06 42 01 26 31
carla.piro@tinexta.com

Consolidated Statement of Profit/Loss and Other Comprehensive Income

	Nine-month period closed at 30 September
€ '000	2021	20203
Revenues	261,558	188,901
- of which vs related parties	218	120
- of which non-recurring	0	74
Costs of raw materials	8,469	6,602
Service costs	83,460	59,075
- of which vs related parties	1,988	841
- of which non-recurring	1,763	959
Personnel costs	102,995	60,955
Contract costs	5,506	5,361
Other operating costs	1,512	1,336
- of which vs related parties	2	1
Amortisation and depreciation	19,219	16,101
Provisions Impairment	1,050 955	426 2,064
Total Costs	223,166	151,921
OPERATING PROFIT	38,392	36,980
Financial income	124	1,340
- of which non-recurring	0	1,075
Financial charges	3,001	2,101
- of which vs related parties	50	32
Net financial income (charges)	-2,877	-761
Share of profit of equity-accounted investments, net of tax	-240	88
PROFIT BEFORE TAX	35,275	36,307
Income taxes	7,151	10,057
- of which non-recurring	-4,629	-1,042
NET PROFIT FROM CONTINUING OPERATIONS	28,124	26,251
Profit (loss) from discontinued operations	0	0
NET PROFIT	28,124	26,251
Other components of the comprehensive income statement
Components that will never be reclassified to profit or loss
Total components that will never be reclassified to profit or loss	0	0
Components that are or may be later reclassified to profit or loss:
Exchange rate differences from the translation of foreign financial statements	-29	-42
Profits (losses) from measurement at fair value of derivative financial instruments	454	-717
Equity-accounted investments - share of Other comprehensive income	-6	-16
Tax effect	-109	172
Total components that may be later reclassified to profit or loss	310	-604
Total other components of comprehensive income, net of tax	310	-604
Total comprehensive income for the period	28,434	25,647
Net profit attributable to:
Group	27,480	25,970
Minority interests	643	280
Total comprehensive income for the period attributable to:
Group	27,806	25,395
Minority interests	628	252
Earnings per share
Basic earnings per share (€)	0.59	0.55
Diluted earnings per share (€)	0.58	0.55

³The comparative data at 30 September 2020 were re-stated in relation to the completion, in the fourth quarter of 2020, of the identification activities of the fair values of the assets and liabilities of PrivacyLab S.r.l., consolidated on a line-by-line basis from 1 January 2020.

Consolidated Statement of Financial Position

€ '000	30/09/2021	31/12/2020
ASSETS
Property, plant and equipment	21,470	18,990
Intangible assets and goodwill	444,350	285,106
Investment property	704	724
Equity-accounted investments	6,744	5,880
Other investments	93	22
Other financial assets, excluding derivative financial instruments	757	1,246
Deferred tax assets	9,059	6,041
Trade and other receivables	3,125	2,517
Contract cost assets	5,764	5,275
NON-CURRENT ASSETS	492,066	325,799
Inventories	1,236	1,154
Other financial assets, excluding derivative financial instruments	2,933	7,320
Current tax assets	311	311
- of which vs related parties	0	6
Trade and other receivables	84,941	84,110
- of which vs related parties	569	48
Contract assets	19,822	9,231
- of which vs related parties	1	0
Contract cost assets	1,008	1,206
Cash and cash equivalents	123,417	92,813
- of which vs related parties	4,158	0
CURRENT ASSETS	233,669	196,146
TOTAL ASSETS	725,735	521,945
EQUITY AND LIABILITIES
Share capital	47,207	47,207
Treasury shares	-15,995	-10,001
Share premium reserve	55,439	55,439
Other reserves	95,371	77,189
Shareholders' equity attributable to the Group	182,022	169,834
Minority interests	46,289	4,047
TOTAL EQUITY	228,311	173,881
LIABILITIES
Provisions	4,020	3,471
Employee benefits	18,453	12,792
Financial liabilities, excluding derivative financial instruments	263,377	150,508
- of which vs related parties	1,703	2,269
Derivative financial instruments	808	1,142
Deferred tax liabilities	10,990	14,279
Contract liabilities	15,254	10,961
- of which vs related parties	39	0
Deferred income	6	4
NON-CURRENT LIABILITIES	312,909	193,156
Provisions	511	752
Employee benefits	36	131
Financial liabilities, excluding derivative financial instruments	53,776	40,365
- of which vs related parties	1,252	1,248
Trade and other payables	73,521	60,249
- of which vs related parties	932	280
Contract liabilities	50,968	46,411
- of which vs related parties	76	0
Deferred income	2,117	1,854
Current tax liabilities	3,588	5,147
CURRENT LIABILITIES	184,516	154,908
TOTAL LIABILITIES	497,424	348,064
TOTAL EQUITY AND LIABILITIES	725,735	521,945

Consolidated Statement of Cash Flow

(€ '000)	Nine-month period closed at 30 September
	2021	2020
Cash flows from operations
Net profit	28,124	26,251
Adjustments for:
- Amortisation and depreciation	19,219	16,101
- Impairment (Revaluations)	955	2,064
- Provisions	1,050	426
- Provisions for Stock Options	1,521	482
- Net financial charges	2,877	761
- of which vs. related parties	50	32
- Share of profit of equity-accounted investments	240	-88
- Income taxes	7,151	10,057
Changes in:
- Inventories	-82	-17
- Contract cost assets	-290	272
- Trade and other receivables and Contract assets	17,182	14,249
- of which vs. related parties	-292	106
- Trade and other payables	-7,462	-4,735
- of which vs. related parties	641	2
- Provisions and employee benefits	380	-119
- Contract liabilities and deferred income, including public contributions	-790	2,207
- of which vs. related parties	116	-18
Cash and cash equivalents generated by operations	70,073	67,912
Income taxes paid	-15,172	-6,505
Net cash and cash equivalents generated by operations	54,901	61,406
Cash flows from investments
Interest collected	14	23
Collections from sale or repayment of financial assets	4,910	228
Investments in equity-accounted shareholdings	-1,110	-44
Investments in property, plant and equipment	-912	-1,461
Investments in other financial assets	-10	-778
Investments in intangible assets	-9,729	-7,390
Increases in the scope of consolidation, net of liquidity acquired	-47,884	-452
Net cash and cash equivalents generated/(absorbed) by investments	-54,721	-9,872
Cash flows from financing
Purchase of minority interests in subsidiaries	-3	-17,271
Interest paid	-1,277	-1,225
- of which vs. related parties	-54	-32
MLT bank loans taken out	80,719	24,827
Repayment of MLT bank loans	-13,488	-7,026
Repayment of price deferment liabilities on acquisitions of equity investments	-2,695	-2,638
- of which vs. related parties	-665	0
Repayment of contingent consideration liabilities	-1,731	-7,581
Change in other current bank payables	-7,850	-2,553
Change in other financial payables	-462	-35
Repayment of lease liabilities	-4,249	-2,881
- of which vs. related parties	-455	-435
Purchase of treasury shares	-5,994	-10,001
Capital increases (decreases) - subsidiaries	-91	0
Dividends paid	-12,455	-2,195
Net cash and cash equivalents generated/(absorbed) by financing	30,424	-28,578
Net increase (decrease) in cash and cash equivalents	30,605	22,956
Cash and cash equivalents at 1 January	92,813	33,600
Cash and cash equivalents at 30 September	123,417	56,556

Total consolidated financial indebtedness

€ '000	30/09/2021	31/12/2020	Change	%	30/09/2020	Change	%
A Cash	123,417	92,813	30,605	33.0%	56,556	66,861	118.2%
B Cash equivalents	0	0	0	n.a.	0	0	n.a.
C Other current financial assets	2,933	7,320	-4,387	-59.9%	7,124	-4,191	-58.8%
D Liquidity (A+B+C)	126,350	100,132	26,218	26.2%	63,680	62,670	98.4%
E Current financial debt	10,685	8,106	2,579	31.8%	3,614	7,071	195.6%
F Current portion of non-current financial debt	43,091	32,258	10,832	33.6%	21,610	21,481	99.4%
G Current financial indebtedness (E+F)	53,776	40,365	13,412	33.2%	25,224	28,552	113.2%
H Net current financial indebtedness (G+D)	-72,574	-59,768	-12,806	21.4%	-38,456	-34,119	88.7%
I Non-current financial debt	264,185	151,650	112,535	74.2%	131,865	132,320	100.3%
J Debt instruments	0	0	0	n.a.	0	0	n.a.
K Non-current trade and other payables	0	0	0	n.a.	0	0	n.a.
L Non-current financial indebtedness (I+J+K)	264,185	151,650	112,535	74.2%	131,865	132,320	100.3%
M Total financial indebtedness (H+L) (*)	191,611	91,882	99,729	108.5%	93,409	98,201	105.1%
N Other non-current financial assets	757	1,246	-488	-39.2%	1,199	-442	-36.8%
O Total adjusted financial indebtedness (M-N)	190,853	90,636	100,217	110.6%	92,210	98,643	107.0%

(*) Total financial indebtedness calculated in accordance with the provisions of CONSOB Communication no. 6064293 of 28 July 2006 and in compliance with the Warning Notice no. 5/21 issued by CONSOB on 29 April 2021 with reference to the Guideline ESMA32-382-1138 dated 4 March 2021.