HALF-YEAR FINANCIAL REPORT at 30/6/2018 at 30.06.2018

This English version of Tecnoinvestimenti's Half-Year Financial Report at 30.06.2018 is made available to provide non-Italian speakers a translation of the original document. Please note that in the event of any inconsistency or discrepancy between the English version and the Italian version, the original Italian version shall prevail.

COMPANY DATA and COMPOSITION OF THE CORPORATE GOVERNANCE BODIES 1
SUMMARY OF GROUP RESULTS 2
INTERIM REPORT ON OPERATIONS 3
GROUP ACTIVITIES 3
KEY EVENTS OF THE PERIOD 5
DEFINITION OF PERFORMANCE INDICATORS 6
GROUP ECONOMIC RESULTS 8
GROUP BALANCE SHEET AND FINANCIAL POSITION 13
KEY EVENTS SUBSEQUENT TO THE END OF THE FIRST HALF OF 2018 16
OUTLOOK 16
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 18
Consolidated Financial Statements 19
Notes to the Condensed Interim Consolidated Financial Statements at 30 June 2018 23
Information on the Statement of financial position 40
Information on the Comprehensive income statement 58
Certification of the Condensed Interim Consolidated Financial Statements pursuant to art. 81-ter of
Consob Regulation no. 11971 of 14 May 1999 and subsequent amendments and integrations 68
Report on review of Condensed Interim Consolidated Financial Statements 69

COMPANY DATA and COMPOSITION OF THE CORPORATE GOVERNANCE BODIES

Parent Company's Registered Office

Tecnoinvestimenti S.p.A. Piazza Sallustio 9 00187 Rome Italy

Statutory Information about the Parent Company

Share capital resolved € 47,207,120 - subscribed and paid-in € 46,573,120 Rome Company Register No. RM 1247386 Tax ID and VAT No. 10654631000 Website www.tecnoinvestimenti.it

Corporate governance bodies currently in office

Board of Directors Enrico Salza Chairman Pier Andrea Chevallard Managing Director Alessandro Potestà Director Riccardo Ranalli Director Laura Benedetto Director (independent) Elisa Corghi Director (independent) Gian Paolo Coscia Director (independent) Paola Generali Director (independent) Giada Grandi Director (independent) Lorena Pellissier Director (independent) Eugenio Rossetti Director (independent)

Control and Risks and Related Parties Committee

Giada Grandi Chairman Riccardo Ranalli Elisa Corghi Alessandro Potestà Eugenio Rossetti

Remuneration Committee

Riccardo Ranalli Paola Generali Lorena Pellissier

Board of Statutory Auditors

Luca Laurini Chairman Monica Mannino Standing Auditor Alberto Sodini Standing Auditor Domenica Serra Alternate Auditor Maria Cristina Ramenzoni Alternate Auditor

Independent Auditors KPMG S.p.A.

Manager responsible for the preparation of the Company's accounting documents Nicola Di Liello

Registered and Operating Office	Operating Office

Piazza Sallustio 9 - 00187 Rome Via Principi d'Acaia, 12 - 10143 Turin Via Meravigli, 7 - 20123 Milan

SUMMARY OF GROUP RESULTS

Summary economic data (In thousands of Euro)	1st Half 2018 IFRS 2018	1st Half 2018 IFRS 20171	1st Half 20172	Change IFRS 20173	Change % IFRS 2017
Revenues	114,510	114,347	85,404	28,943	33.9%
EBITDA	28,873	28,525	18,386	10,139	55.1%
Operating profit	21,808	21,459	12,389	9,070	73.2%
Net profit	14,603	14,434	8,617	5,818	67.5%
Adjusted net profit	16,269	16,100	10,296	5,804	56.4%

Summary equity-financial data (In thousands of Euro)	30/6/2018 IFRS 2018	31/12/2017	Change	Change %
Share capital	46,573	46,573	0	0.0%
Shareholders' equity	138,487	143,317	-4,830	-3.4%
Net financial indebtedness	96,345	104,563	-8,218	-7.9%

Since 1 January 2018, the Group has adopted IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments", which have led to changes in accounting policies and adjustments to the amounts entered in the accounts. Comparative 2017 data have not been restated, while the economic data for the subject period are also stated without applying IFRS 15 and IFRS 9. The comparative analyses of the Interim Report on Operations refer, unless otherwise indicated, to the 2018 data without application of IFRS 15 and IFRS 9.

¹ The 2018 figures do not apply IFRS 15 and IFRS 9, adopted from 1 January 2018, in order to allow comparability with the 2017 data, thereby adopting the same accounting standards in effect during First Half 2017.

² The comparative data of first half 2017 were re-stated in relation to the completion, in the second half of 2017, of identification of the fair values of the assets and liabilities of Sixtema S.p.A., consolidated on a line-by-line basis from 1 April 2017.

³ Note that, in order to allow effective comparability, changes in the economic results, unless otherwise indicated, refer to data for first half 2018, drawn up without application of IFRS 9 and IFRS 15 ("IFRS 2017"), compared to the data for first half 2017, also drawn up without the application of said principles.

INTERIM REPORT ON OPERATIONS

GROUP ACTIVITIES

The Tecnoinvestimenti Group operates in Italy and to a lesser extent abroad in three business units: Digital Trust, Credit Information & Management and Innovation & Marketing Services. The Group has developed rapidly in recent years, due to both organic growth and acquisitions, aimed at expanding the portfolio of products/services and extending the offering to market sectors considered strategic and synergistic.

The Group operates through three Business Units (BUs):

The Digital Trust Business Unit proposes IT solutions to the market for digital identity and dematerialisation of processes in line with applicable regulations (including the new European eIDAS regulation) and customer and sector compliance standards, through various products and services such as certified e-mail (CEM), electronic storage, ature, e-invoicing, Telematic Trust Solutions and Enterprise Content Management Solutions. Digital Trust activities are provided by the Group through the InfoCert group and the Visura group.

For the purpose of carrying out activities as a manager of certified e-mail, electronic storage and ature, InfoCert is qualified as Certification Authority and accredited by the AgID (Agenzia per l'identità digitale, the governmental Agency for Digital Identity). The ability to provide said IT solutions is reserved for entities that meet certain legal requirements, in terms of both assets and organic and technological infrastructure. InfoCert has also been accredited by AgID as Identity Trust Provider, i.e. Digital Identity manager, which can issue digital identities to citizens and businesses, managing in total security the authentication of clients.

Visura and its subsidiary Lextel are active in the Digital Trust market, mainly through the sale of Telematic Trust Solutions and resale services of products such as certified e-mail, ature and electronic invoicing like InfoCert; they also offer telematic services and manage approximately 450 thousand client lists including professionals, professional firms, public administrations, professional associations and companies; through its ISI subsidiary, the Visura group also offers products and services in the IT sector for professional associations such as electronic filing, CAF Facile (the filing of 730 tax return statements and related documents) and certified e-mail.

Sixtema, 80%-owned by InfoCert since April 2017, provides IT and management services to companies, entities, associations and institutions, with a particular focus on the world of CNAs - Confederazione Nazionale dell'Artigianato (National Confederation of Artisans). It has its own data centre through which it provides software services via ASP and/or SaaS. Moreover, as service provider, it provides an integrated technological infrastructure service. Its offer comprises software solutions to comply with all tax obligations, employment legislation and other regulations in general.

Camerfirma, 51% owned by InfoCert since May 2018, leader in Spain in the Digital Trust sector and present in the South American market as well (Camerfirma Perù), mainly distributes digital certification services. It has launched the marketing of high value-added InfoCert products to banks and large companies operating on the Spanish market.

The Credit Information & Management BU provides standard and value-added services mainly aimed at supporting processes for the granting, assessment and recovery of credit in both the banking and business sectors and operates through Innolva S.p.A.⁴ (created from the merger of the companies Assicom S.p.A. and Ribes S.p.A. in 2017) and RE Valuta S.p.A.

Innolva provides a complete range of IT services to support decision-making processes for the granting, assessment and recovery of credit, along with credit management and business information

⁴ As described in the note KEY EVENTS OF THE PERIOD, on 26 April 2018, Assicom Ribes changed its name to Innolva S.p.A.

services, through a business model characterised by the integration of services, with the aim of supporting SMEs at every stage of the credit management and recovery cycle. In May 2018, Innolva sold 70% of Creditreform Assicom Ticino, which belongs to the Creditreform network, an international organisation operating in the business information and credit recovery sector with which it operates on the Swiss market.

RE Valuta identifies and provides assessment services to define the effective value of real estate collateral during the granting of loans.

The Innovation & Marketing Services BU operates in the market through the Co.Mark and Warrant groups, the latter acquired in November 2017. Through a team of TES® (Temporary Export Specialists®), Co.Mark provides value-added services aimed at supporting small and medium-sized companies or networks of companies in their internationalisation, in the search for customers and in creating business opportunities in Italy as well as abroad. In July 2015, Co.Mark TES S.L. was established in Barcelona with the objective of developing the innovative export model, also in support of the Spanish SMEs, which operate in a market very similar to the Italian one.

Warrant Group and its subsidiaries predominantly offer consulting services to companies that invest in productivity and R&D innovation to obtain subsidised and integrated loans, also through tools provided by the European Union, the Ministry of Economic Development and the Regions, and tools provided by the National Industry Plan 4.0. Warrant offers specific support to companies in managing relations with banks and in analysing company ratings in order to identify the most critical variables on which to implement actions to improve the company in view of Basel 2. Warrant Innovation Lab focuses on promoting the sharing of knowledge, ideas, products, technologies and methodologies among companies, universities and research centres, in order to systematically generate and support industrial innovation.

The chart that follows outlines the structure of the Tecnoinvestimenti Group, solely including controlling interests held, at 30 June 2018.

KEY EVENTS OF THE PERIOD

An overview of the key events that occurred in the first half of the year is provided as follows:

1. On 8 February 2018, Cedacri, a Tecnoinvestimenti shareholder, completed the placement of 4.25% of the share capital at € 6.70 per share. Following the disposal, achieved through an accelerated book building procedure reserved for institutional investors, Cedacri's stake in Tecnoinvestimenti declined to 1.352%, with regard to which Cedacri undertook a 180-day lock-up commitment.
1. On 1 March 2018, the Board of Directors of Assicom Ribes S.p.A (now Innolva S.p.A.) resolved to dispose of the stake held in Swiss company Creditreform Assicom Ticino SA since, after the changes made to the corporate structure of Assicom Ribes S.p.A. in 2017, this investment is no longer considered strategic. Innolva S.p.A. completed the sale on 22 May 2018. The transaction involved the disposal as at closing date of 70% of the share capital for a total of CHF 370 thousand over 4 years, expiring in 2022, with an early payment option. A call option will be provided on the remaining 30% at a pre-established price of CHF 150 thousand, to be exercised by the purchaser between the date of full payment of the instalment and 2023. Creditreform Assicom Ticino S.A. was consolidated into the Tecnoinvestimenti Group on a line-by-line basis until 31 May 2018, and with the equity method starting from 1 June.
1. On 13 March 2018, InfoCert S.p.A. received a petition from Thron S.p.A. demanding the payment of € 200 thousand as a penalty due to the failure to comply with a confidentiality agreement, in addition to € 21,780 thousand due to greater damages suffered for alleged undue use of software. In acknowledging this judicial initiative, Tecnoinvestimenti S.p.A., for its part, having consulted with the management of InfoCert S.p.A., highlights the groundlessness of the arguments supporting the claims made. To that end, the appropriate judicial initiatives are underway.
1. The Ordinary Shareholders' Meeting of 24 April 2018 renewed and set the number of members of the Board of Directors at 11 for the years 2018-2019-2020, as well as the Board's remuneration, confirming Enrico Salza as the Chairman of the Board of Directors. The Ordinary Shareholders' Meeting also appointed the Board of Statutory Auditors for the period 2018-2020 and resolved the distribution of a dividend of € 0.14 per ordinary share, for a total amount of € 6,520,236.80.
1. On 26 April 2018, Assicom Ribes changed its name and became Innolva S.p.A. Innolva is the new name of the company fully owned by Tecnoinvestimenti S.p.A., which offers business information, risk monitoring and credit recovery services and is part of the Group's Credit Information & Management Business Unit. The company's change in name from Assicom Ribes S.p.A. to Innolva S.p.A. was approved by the company's Extraordinary Shareholders' Meeting on 28 March 2018 and became effective for all intents and purposes following registration with the Register of Companies of the Chamber of Commerce of Udine.
1. On 3 May 2018, the Tecnoinvestimenti Group, through its subsidiary Infocert S.p.A., successfully completed the acquisition of AC Camerfirma SA (Camerfirma), leader in Spain in the Digital Trust sector, present in the South American market as well (Camerfirma Perù). Infocert has a 51% stake in the new company. The transaction will allow Infocert S.p.A. to pursue its growth strategy through:
The creation of an international Trust Service Provider with solid roots and a clear focus on the European market;
Integration of the respective offers and capabilities for effective coverage of the market;
Optimisation of synergies in infrastructures, transactions, investments, innovation and development of new products/solutions.

The 51% acquisition of Camerfirma took place through the subscription of a share capital increase of € 3.1 million. InfoCert carried out the acquisition with internal resources.

On 13 June 2018, Tecnoinvestimenti S.p.A. stated that, based on the results of the annual financial statements of the Group companies, the condition set forth in art. 3 of the Regulation of the "Warrant Tecnoinvestimenti 2016-2019" was satisfied for the year ended 31 December 2017. Therefore, Cedacri S.p.A. - shareholder that, based on the information publicly available, holds a 1.352% stake in Tecnoinvestimenti S.p.A. - will be entitled, up until 30 September 2018, to exercise the second tranche of warrants held up to a maximum of 317,000, corresponding to 317,000 new ordinary shares of Tecnoinvestimenti S.p.A. (equal to 0.681% of the latter's current share capital), at a subscription price of € 3.40 per share, determined in accordance with the relevant Regulation.

DEFINITION OF PERFORMANCE INDICATORS

Tecnoinvestimenti management evaluates the performance of the Group and of the business segments also on the basis of a number of indicators not envisaged by the IFRS.

With regard to said indicators, on 3 December 2015, CONSOB issued Communication no. 0092543/15, authorising application of the Guidelines issued on 5 October 2015 by the European Securities and Markets Authority (ESMA/2015/1415), regarding their presentation in the regulated information disclosed or in the statements published starting from 3 July 2016. These guidelines are intended to promote the usefulness and transparency of the alternative performance indicators included in the regulated information or in the statements falling within the scope of application of Directive 2003/71/EC, in order to improve their comparability, reliability and comprehensibility, when such indicators are not defined or envisaged by the financial reporting framework.

The criteria used to calculate these indicators are provided below, in line with the aforementioned communications.

EBITDA: Calculated as "Net profit" before "Income taxes", "Net financial income (charges)", "Share of profit of equity-accounted investments", "Amortisation/depreciation", "Provisions" and "Impairment", or as "Revenues" before "Costs of raw materials", "Service costs", "Personnel costs", "Contract costs" and "Other operating costs".

Operating profit: Although the IFRS do not contain a definition of Operating profit, it is presented in the Statement of profit/(loss) and other components of the comprehensive statement of income and is calculated starting from EBITDA, net of "Amortisation/depreciation", "Provisions" and "Impairments".

Adjusted net profit: Calculated using "Net profit" net of non-recurring components and amortisation of intangible assets recognised upon allocation of the price paid for business combinations, net of tax effect. This indicator reflects the Group's economic performance, net of non-recurring factors that are not directly attributable to the activities and operation of its core business.

Adjusted EPS: Obtained from the ratio of Adjusted net income and the weighted average number of ordinary shares outstanding during the period.

Net financial position (indebtedness): Determined in accordance with Consob Communication no. 6064293 of 28 July 2006 and the ESMA/2013/319 Recommendation, subtracting "Other current financial liabilities", "Derivative financial instruments payable" and "Other non-current financial liabilities" from "Cash and cash equivalents", "Other current financial assets" and "Current derivative financial instruments receivable".

Total net financial position (indebtedness): Calculated by adding the Net financial position (indebtedness), "Non-current derivative financial instruments receivable" and "Other non-current financial assets".

Free Cash Flow: Represents the cash flow available for the Group and is equal to the difference between the cash flow from operating activities and the cash flow for investments in capital assets. It is equal to the difference between "Net cash and cash equivalents generated by operations" and the sum of "Investments in property, plant and equipment" and "Investments in intangible assets" included in the Statement of Cash Flows.

Net non-current assets: The difference between "Non-current assets" and "Non-current liabilities", with the exception of:

"Non-current derivative financial instruments payable"
"Other non-current financial liabilities"
"Non-current receivables from customers"
"Contract cost assets"

Net working capital: The difference between "Current assets" and "Current liabilities", including "Noncurrent receivables from customers" and "Contract cost assets" and excluding:

"Current derivative financial instruments receivable"
"Other current financial assets"
"Cash and cash equivalents"
"Current derivative financial instruments payable"
"Other current financial liabilities"

Net invested capital: The algebraic sum of Net non-current assets and Net working capital.

GROUP ECONOMIC RESULTS

The Group closed First Half 2018 with Revenues of € 114,510 thousand. EBITDA amounted to € 28,873 thousand, equal to 25.2% of revenues. Operating profit and Net profit amounted to € 21,808 thousand and € 14,603 thousand, respectively, equal to 19.0% and 12.8% of Revenues.

In order to ensure effective comparability with the economic results of First Half 2017, we have also presented the data for First Half 2018 without applying the international accounting standards IFRS 9 and 15 (stated in the column "1st Half 2018 IFRS 2017"). The comparative analyses, unless otherwise indicated, therefore refer to the data for First Half 2018, prepared without applying the accounting standards adopted from 1 January 2018.

Abbreviated Consolidated income statement (in thousands of Euro)	1st Half 2018 IFRS 2018	%	1st Half 2018 IFRS 2017	%	1st Half 2017	%	Change IFRS 2017	Change % IFRS 2017
Revenues	114,510	100.0%	114,347	100.0%	85,404	100.0%	28,943	33.9%
EBITDA	28,873	25.2%	28,525	24.9%	18,386	21.5%	10,139	55.1%
Operating profit	21,808	19.0%	21,459	18.8%	12,389	14.5%	9,070	73.2%
Net profit	14,603	12.8%	14,434	12.6%	8,617	10.1%	5,818	67.5%

Revenues rose by € 28,943 thousand or 33.9%, EBITDA by € 10,139 thousand or 55.1%, Operating profit by € 9,070 thousand or 73.2%, and Net profit by € 5,818 thousand or 67.5%. The results largely reflect the expansion of the Group's perimeter compared to First Half 2017, with the introduction of:

Sixtema S.p.A., consolidated line-by-line as of 1 April 2017;
Warrant Group, consolidated as of 1 December 2017;
Camerfirma Group, consolidated as of 1 May 2018.

It is worthwhile noting the deconsolidation, following the sale, of Creditreform Assicom Ticino SA as of 1 June 2018. Starting from this date, the participation is accounted for using the equity method of the associated stake of 30%.

The table below shows the economic results net of non-recurring items.

Income Statement net of non-recurring items (in thousands of Euro)	1st Half 2018 IFRS 2018	%	1st Half 2018 IFRS 2017	%	1st Half 2017	%	Change IFRS 2017	Change % IFRS 2017
Revenues	114,330	100.0%	114,168	100.0%	85,404	100.0%	28,764	33.7%
EBITDA	29,229	25.6%	28,881	25.3%	19,523	22.9%	9,358	47.9%
Operating profit	22,163	19.4%	21,815	19.1%	13,526	15.8%	8,289	61.3%
Net profit	14,855	13.0%	14,687	12.9%	8,713	10.2%	5,973	68.6%

Net of the non-recurring items, Revenues were up by 33.7%, EBITDA by 47.9%, Operating profit by 61.3% and Net profit by 68.6%.

Non-recurring items

During First Half 2018, non-recurring revenues of € 179 thousand were recorded due to a capital gain on the sale of a capital property. Non-recurring operating costs were also recorded for € 535 thousand, of which € 401 thousand for costs linked to acquisitions of target companies and € 134 thousand in personnel reorganisation costs.

***

The calculation method of Adjusted net profit for the period is shown below, used to present the Group's operating performance, net of non-recurring items and the amortisation of intangible assets which arose at the time of allocation of the price paid in the business combinations (net of the tax effect). This indicator reflects the Group's economic performance, net of non-recurring factors that are not directly attributable to the activities and operation of its core business, thus allowing a more homogeneous analysis of the Group's performance in the periods under comparison.

Abbreviated Consolidated income statement (in thousands of Euro)	1st Half 2018 IFRS 2018	1st Half 2018 IFRS 2017	1st Half 2017	Change IFRS 2017	Change % IFRS 2017
Net profit	14,603	14,434	8,617	5,818	67.5%
Non-recurring revenues	-179	-179		-179
Non-recurring service costs	401	401	757	-356
Non-recurring personnel costs	134	134	380	-246
Amortisation of intangible assets recognised upon cost allocation (PPA)	1,984	1,984	2,227	-242
Non-recurring financial income			-747	747
Tax effect	-674	-674	-937	263
Adjusted net profit	16,269	16,100	10,296	5,804	56.4%

The following table provides details of the Income statement for First Half 2018:

Consolidated Income Statement (in thousands of Euro)	1st Half 2018 IFRS 2018	%	1st Half 2018 IFRS 2017	%	1st Half 2017	%	Change IFRS 2017	Change % IFRS 2017
Revenues	114,510	100.0%	114,347	100.0%	85,404	100.0%	28,943	33.9%
Total Operating Costs	85,636	74.8%	85,823	75.1%	67,018	78.5%	18,804	28.1%
Costs of raw materials	2,875	2.5%	2,430	2.1%	2,843	3.3%	-413	-14.5%
Service costs	38,657	33.8%	43,214	37.8%	33,347	39.0%	9,867	29.6%
Personnel costs	38,447	33.6%	39,165	34.3%	29,801	34.9%	9,364	31.4%
Contract costs	4,644	4.1%	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Other operating costs	1,014	0.9%	1,014	0.9%	1,028	1.2%	-14	-1.4%
EBITDA	28,873	25.2%	28,525	24.9%	18,386	21.5%	10,139	55.1%
Depreciation, amortisation, provisions and impairment	7,066	6.2%	7,066	6.2%	5,996	7.0%	1,069	17.8%
Operating profit	21,808	19.0%	21,459	18.8%	12,389	14.5%	9,070	73.2%
Financial income	82	0.1%	82	0.1%	899	1.1%	-817	-90.9%
Financial charges	1,077	0.9%	967	0.8%	972	1.1%	-5	-0.5%
Result of equity-accounted investments	30	0.0%	30	0.0%	2	0.0%	28	1135.2%
Profit before taxes	20,843	18.2%	20,604	18.0%	12,318	14.4%	8,286	67.3%
Income taxes	6,240	5.4%	6,170	5.4%	3,701	4.3%	2,469	66.7%
Net profit	14,603	12.8%	14,434	12.6%	8,617	10.1%	5,818	67.5%

Revenues rose from € 85,404 thousand in First Half 2017 to € 114,347 thousand in First Half 2018, with an increase of € 28,943 thousand or 33.9%, mainly due to full consolidation of the Warrant group (from 1 December 2017) and of the Camerfirma group, consolidated on a line-by-line basis from 1 May 2018, and Sixtema S.p.A., consolidated on a line-by-line basis from 1 April 2017. The change in revenues attributable to the change in perimeter (including the deconsolidation of Creditreform as of 1 June 2018) was 30.3%, while the remaining 3.6% is due to organic change.

Operating costs rose from € 67,018 thousand in First Half 2017 to € 85,823 thousand in First Half 2018, for an increase of 28.1% or € 18,804 thousand. The variation is due largely, as reported in the revenues section, to the expansion in the scope of consolidation. The change in operating costs attributable to the change in perimeter was 23.9%, while the remaining 4.1% is due to organic change. The item Contract costs, introduced following application of IFRS 15, includes the periodic release of the period's share of the incremental cost assets capitalised for obtaining or fulfilling contracts with customers.

The item Depreciation, amortisation, provisions and impairment, for € 7,066 thousand (€ 5,996 thousand in First Half 2017) includes € 1,984 thousand in amortisation of intangible assets arising upon allocation of the excess cost paid in business combinations, mainly relating to Innolva and to the Visura and Co.Mark groups.

The balance of Financial income and charges during First Half 2018 is negative for € 885 thousand (€ 74 thousand in First Half 2017). Financial charges of € 967 thousand predominantly comprise interest expense on bank loans for € 490 thousand and interest to the majority shareholder, Tecno Holding S.p.A., for € 248 thousand. Particular mention goes to recognition in First Half 2017 of the income achieved in the acquisition of control of Sixtema for € 747 thousand, leading to the significant change between First Half 2018 and First Half 2017.

Estimated Income taxes, calculated based on the tax rates envisaged for the year by the current tax laws, amount to € 6,170 thousand. The tax rate is 29.9%, in line with the prior period (30.0%).

Results by business segment

The results of the business segments are measured through the analysis of performance of Revenues and EBITDA. In particular, management believes that EBITDA provides a good indication of performance as it is not influenced by tax regulations and amortisation policies.

The table that follows shows the growth dynamics by business segment, listing the respective revenues compared with the previous year:

		EBITDA %		EBITDA %					Change % IFRS 2017
Summary Income Statement by business segment (thousands of Euro)	1st Half 2018 IFRS 2018	1st Half 2018 IFRS 2018	1st Half 2018 IFRS 2017	1st Half 2018 IFRS 2017	1st Half 2017	EBITDA % 1st Half 2017	Change IFRS 2017	Total	Organic	Perimeter
Revenues
Digital Trust	45,682		45,520		39,184		6,336	16.2%	5.9%	10.2%
Credit Information & Management	37,170		37,170		36,813		358	1.0%	1.1%	-0.2%
Innovation & Marketing Services	31,656		31,656		9,407		22,250	236.5%	3.5%	233.1%
Other segments (Parent Company)	0		0		1		-1	-60.1%	-60.1%	0.0%
Total Revenues	114,510		114,347		85,404		28,943	33.9%	3.6%	30.3%
EBITDA
Digital Trust	11,642	25.5%	11,319	24.9%	10,039	25.6%	1,280	12.7%	7.9%	4.9%
Credit Information & Management	7,554	20.3%	7,554	20.3%	7,462	20.3%	92	1.1%	1.1%	0.1%
Innovation & Marketing Services	13,012	41.1%	12,986	41.0%	3,677	39.1%	9,309	253.2%	-0.4%	253.6%
Other segments (Parent Company)	-3,335	n.a.	-3,335	n.a.	-2,793	n.a.	-542	-19.4%	-19.4%	0.0%
Total EBITDA	28,873	25.2%	28,525	24.9%	18,386	21.5%	10,139	55.1%	1.7%	53.4%

Summary Income Statement	1st	EBITDA %	1st	EBITDA %		EBITDA %			Change % IFRS 2017
by business segment net of non-recurring items	Half 2018 IFRS 2018	1st Half 2018 IFRS 2018	Half 2018 IFRS 2017	1st Half 2018 IFRS 2017	1st Half 2017	1st Half 2017	Change IFRS 2017	Total	Organic	Perimeter
Revenues
Digital Trust	45,503		45,341		39,184		6,157	15.7%	5.5%	10.2%
Credit Information & Management	37,170		37,170		36,813		358	1.0%	1.1%	-0.2%
Innovation & Marketing Services	31,656		31,656		9,407		22,250	236.5%	3.5%	233.1%
Other segments (Parent Company)	0		0		1		-1	-60.1%	-60.1%	0.0%
Total Revenues	114,330		114,168		85,404		28,764	33.7%	3.4%	30.3%
EBITDA
Digital Trust	11,505	25.3%	11,183	24.7%	10,039	25.6%	1,144	11.4%	6.5%	4.9%
Credit Information & Management	7,814	21.0%	7,814	21.0%	7,992	21.7%	-178	-2.2%	-2.4%	0.1%
Innovation & Marketing Services	13,012	41.1%	12,986	41.0%	3,677	39.1%	9,309	253.2%	-0.4%	253.6%
Other segments (Parent Company)	-3,102	n.a.	-3,102	n.a.	-2,186	n.a.	-917	-41.9%	-41.9%	0.0%
Total EBITDA	29,229	25.6%	28,881	25.3%	19,523	22.9%	9,358	47.9%	-2.4%	50.3%

The following table shows the economic results by business segments, net of non-recurring items:

Comments on the results of the individual business segments, net of non-recurring items, are provided below. Moreover, in order to ensure effective comparability with the results of First Half 2017, the comments refer to the data for First Half 2018, prepared without applying the accounting standards adopted from 1 January 2018 (IFRS 2017).

Digital Trust

Revenues from the Digital Trust segment amounted to € 45,341 thousand in First Half 2018. The increase over First Half 2017 amounts to 15.7%, or € 6,157 thousand in absolute terms, consisting of 5.5% due to organic growth and 10.2% as a result of growth by acquisitions compared to First Half 2017, following full consolidation of Sixtema S.p.A. from 1 April 2017 and of the Camerfirma group from 1 May 2018.

EBITDA for the segment was € 11,183 thousand in First Half 2018. The increase over the EBITDA for First Half 2017 amounts to 11.4%. Organic growth amounted to 6.5%, while the contribution of Sixtema S.p.A. and of the Camerfirma group due to the aforementioned growth in perimeter was 4.9%. In percentage terms, the EBITDA margin (impact of EBITDA on Revenues) was 24.7%, down slightly compared to First Half 2017. The decrease is attributable to Sixtema (consolidated from April 2017), which has lower margins than other companies in the segment (Infocert and Visura group).

The InfoCert group recorded positive results. Growth in revenues amounts to € 6,270 thousand, a percent increase of 20.5% over the previous year. EBITDA is up by 15.2%, due to the higher turnover volumes arising from a general increase in sales recorded by almost all company products and services in the Mass market (web site) as well as in the Solutions market (Major Customers). Growth in the Solutions market is attributable to the growing capacity of InfoCert to not only act as Certification Authority on the market, but also as promoter of innovative solutions to support the business processes of business customers.

The results achieved, apart from what is described above, are also the result of industrial and commercial synergies developed between the two groups (InfoCert and Visura) and aimed at directing the Digital Trust offering also to the world of trade associations and professionals.

It is also worthwhile noting the contribution of the recently acquired Camerfirma group, consolidated on a line-by-line basis from May 2018, with revenues of € 925 thousand and EBITDA of € 343 thousand.

The Visura group is in line with the expected trend, with revenues essentially stable and EBITDA up by 3.1% compared to the same period of the prior year.

Credit Information & Management

Revenues in the Credit Information & Management segment amounted to € 37,170 thousand. Compared to First Half 2017, a slight growth of 1.0% was recorded, comprising organic growth of 1.1% and a decrease due to change in perimeter compared to First Half 2017 of -0.2% as a result of deconsolidation of Creditreform Assicom Ticino SA from June 2018.

In terms of margins, EBITDA is down slightly (-2.2%) compared to the same period of the prior year, amounting to € 7,814 thousand. The EBITDA margin equaled 21.0%, compared to 21.7% in First Half 2017.

In the Credit Information & Management sector, Assicom Ribes S.p.A. changed its name to become Innolva S.p.A. in early 2018, and the Chamber of Commerce database investment project was completed. After establishment of the initial structure, information in the proprietary data base is constantly updated through steady annual investments. The underlying reasons for the investment are: the possibility of developing an offering aligned with market demand, which calls for the launch of innovative products and the proposition of the associated additional services; independence in the procurement phases from the main competitors and the possibility of guaranteeing the highest quality standards with respect to the depth of the data underlying the analyses and the accuracy guaranteed by their continuous updating. Moreover, as indicated in the paragraph Key events subsequent to the end of First Half 2018, the company Innolva completed its acquisition of the companies Comas S.r.l. and Webber S.r.l., two companies active in the sale of business and real estate information through the internet. The strategy is aimed at strengthening the positioning on the web and increasing Innolva's market share. Comas S.r.l. and Webber S.r.l., respectively established in 1976 and 2013, are predominantly active in the resale, through the web, of business information such as filings with the Chambers of Commerce, cadastral property registries, the automobile registry and the Registry Office, court certificates, reports on natural and legal persons and other information services.

Overall, in the half-year just ended, Innolva S.p.A. recorded a decrease in revenues due to various reasons, such as: extraordinary merger transactions between banking institutes of the company's customer portfolio, leading to a rationalisation of information provided by Innolva S.p.A., aggressive pricing policies by the associated competitors, a general stagnancy of demand and a decline in sales volumes in the credit recovery segment. Operating costs also declined, due to the reduction in costs arising from the industrial synergies achieved following the merger of Assicom and Ribes.

The company Re Valuta S.p.A. recorded higher turnover in First Half 2018 compared to the same period of the prior year, with results up (+38.3%), thanks to a general increase in volumes of the major customers and acquisition of new ones. EBITDA rose from € 850 thousand in 2017 to € 1,407 thousand in 2018, for an absolute increase of € 557 thousand or 65.5% of revenues.

Innovation & Marketing Services

Revenues for the segment amounted to € 31,656 thousand in First Half 2018, an increase over the first half of the previous year of € 22,250 thousand (+236.5%). EBITDA amounted to € 12,986 thousand, up compared to First Half 2017 by € 9,309 thousand (+253.2%).

On a like-for-like basis with respect to First Half 2017 (only the Co.Mark group, which includes Co.Mark S.p.A. and Co.Mark Spagna), thereby excluding the contribution of Warrant group, consolidated on 1 December 2017, revenues rose 3.5%, while EBITDA was essentially stable. This trend is attributable to the investments in the organisational structure, made to support the growth in business of both Co.Mark S.p.A. as well as Co.Mark TES (Spain). The contracts arising from the "Voucher for Internationalisation" grants, launched late due to postponement of the publication of the relative call for tenders by the Ministry of Economic Development, are ready and began to generate revenues from Second Quarter 2018.

The Warrant group, acquired in December 2017, contributed to the results of the segment with revenues of € 21,923 thousand and EBITDA of € 9,330 thousand. The EBITDA margin for the period amounted to 42.6%. Performance of the Warrant group during the half-year confirms the positive trends already recorded in prior periods.

GROUP BALANCE SHEET AND FINANCIAL POSITION

The Group's balance sheet at 30 June 2018 compared with 31 December 2017, is reported as follows:

(in thousands of Euro)

	30/6/2018	% of Net invested capital/Total sources	31/12/2017	% of Net invested capital/Total sources	Change	Change %
Intangible assets and goodwill	254,102	108.2%	252,693	101.9%	1,409	0.6%
Property, plant and equipment	8,047	3.4%	8,287	3.3%	-239	-2.9%
Other net non-current assets and liabilities	-19,150	-8.2%	-16,758	-6.8%	-2,392	14.3%
Net non-current assets	242,999	103.5%	244,221	98.5%	-1,222	-0.5%
Inventories	963	0.4%	2,072	0.8%	-1,109	-53.5%
Contract cost assets	5,874	2.5%	n.a.	n.a.	5,874	n.a.
Trade and other receivables*	83,548	35.6%	80,543	32.5%	3,004	3.7%
Contract assets	5,365	2.3%	n.a.	n.a.	5,365	n.a.
Current tax assets	1,490	0.6%	1,990	0.8%	-500	-25.1%
Assets held for sale	199	0.1%	199	0.1%	0	0.0%
Trade and other payables	-52,434	-22.3%	-47,725	-19.3%	-4,709	9.9%
Contract liabilities and deferred income	-41,576	-17.7%	-26,593	-10.7%	-14,983	56.3%
Current employee benefits	-388	-0.2%	-360	-0.1%	-28	7.7%
Current tax liabilities	-11,078	-4.7%	-6,125	-2.5%	-4,953	80.9%
Current provisions for risks and charges	-130	-0.1%	-342	-0.1%	212	-62.0%
Net working capital	-8,167	-3.5%	3,659	1.5%	-11,826	-323.2%
Total loans - net invested capital	234,832	100.0%	247,880	100.0%	-13,048	-5.3%
Shareholders' equity	138,487	59.0%	143,317	57.8%	-4,830	-3.4%
Net financial indebtedness	96,345	41.0%	104,563	42.2%	-8,218	-7.9%
Total sources	234,832	100.0%	247,880	100.0%	-13,048	-5.3%

* The item Trade and other receivables includes non-current receivables from customers

The following is the breakdown of Other net non-current assets and liabilities:

Other net non-current assets and liabilities 30/6/2018 31/12/2017 Change Change % Equity-accounted investments 183 25 158 Other investments 29 49 -20 Other financial assets except for derivative fin. instruments 850 543 306 Derivative financial instruments 37 40 -3 Deferred tax assets 8,573 5,556 3,017 Other receivables 678 385 293 Non-current assets 10,350 6,598 3,752 Provisions -1,484 -1,598 113 Deferred tax liabilities -9,459 -9,345 -114 Employee benefits -11,599 -10,977 -622	in thousands of Euro

					644.0%
					-40.2%
					56.4%
					-7.9%
					54.3%
					76.3%
					56.9%
					-7.1%
					1.2%
					5.7%
	Contract liabilities and deferred income	-6,958	-1,437	-5,521	384.3%
Non-current liabilities -29,500 -23,356 -6,143					26.3%
Other net non-current assets and liabilities -19,150 -16,758 -2,392					14.3%

Shareholders' equity is down by € 4,830 thousand, mainly due to the application at 1 January 2018 of the international accounting standards IFRS 15 and IFRS 9. Adoption of IFRS 15 involved the recognition, at 1 January 2018, of lower equity reserves for € 8,353 thousand, net of taxes. Adoption of IFRS 9 involved the recognition, at 1 January 2018, of greater equity reserves for € 519 thousand, net of taxes. The further changes in Shareholders' equity during the period mainly regarded dividends resolved by the Group (€ 12,067 thousand) and adjustment of the Put options on minority interests (€ 2,550 thousand), net of the comprehensive statement of income for the period (€ 14,607 thousand) and the increase of minority interests due to full consolidation of the Camerfirma group (€ 3,000 thousand). Please consult the Statement of changes in equity for an overview of all changes.

Net working capital decreased from € 3,659 thousand at 31 December 2017 to € -8,167 thousand at 30 June 2018. The decrease is mainly due to the effect of adoption of IFRS 15, without therefore any impact on liquidity, which involved, at 1 January 2018, recognition of Current contract liabilities for € 9.3 million. Application of said standard required recognition of the following items in the financial statements:

Contract cost assets: these include capitalised incremental costs to obtain contracts with customers and capitalised costs incurred to carry out contracts with customers that do not fall under the scope of application of other principles;
Contract assets: these represent the Group's right to obtain consideration for goods or services transferred to the customer when the right is subject to something other than the passing of time. These assets are stated separately from Trade receivables, which solely include rights not impacted by the consideration;
Contract liabilities: these represent the Group's obligation to transfer to the customer goods or services for which the Group has received consideration from the customer or for which consideration is due.

Net non-current assets at 30 June 2018 amounted to € 242,999 thousand and are essentially in line (-0.5%) with respect to 31 December 2017 (€ 244,221 thousand). Of this balance, € 254,102 thousand refers to Intangible assets and goodwill. Note that the excess cost paid for the Warrant Group acquisition (equal to € 52,987 thousand) was provisionally allocated to goodwill, as all of the information needed for an accurate allocation of the price paid was still not available. This information will be collected and processed in time for drawing up of the 2018 Financial Statements. Application of the new IFRS 15 from 1 January 2018 involved a substantial reduction in Deferred tax assets (tax effect) and Contract liabilities.

Group Net Financial Position

The table below shows a breakdown of the Group's Net financial indebtedness at 30 June 2018 compared to the same position at 31 December 2017:

in thousands of Euro

	30/6/2018	31/12/2017	Change	%
A Cash	43,316	36,953	6,363	17.2%
B Cash equivalents	36	34	2	7.0%
D Liquid assets (A+B)	43,352	36,987	6,366	17.2%
E Current financial receivables	4,110	4,311	-200	-4.7%
F Current bank debt	-817	-1,297	480	-37.0%
G Current portion of non-current debt	-7,579	-7,355	-224	3.0%
H Other current financial debt	-77,453	-13,071	-64,382	492.6%
I Current financial debt (F+G+H)	-85,849	-21,723	-64,126	295.2%
J Net current financial indebtedness (D+E+I)	-38,387	19,574	-57,961	-296.1%
K Non-current bank debt	-38,399	-43,058	4,658	-10.8%
L Other non-current financial debt	-19,559	-81,079	61,520	-75.9%
M Non-current financial debt (K+L)	-57,958	-124,137	66,178	-53.3%
N Net financial position (indebtedness) (J+M)(*)	-96,345	-104,563	8,218	-7.9%
O Other non-current financial assets	887	584	303	51.9%
P Total net financial positon (indebtedness) (N+O)	-95,458	-103,979	8,521	-8.2%

(*) Net financial indebtedness computed in accordance with the provisions of Consob Communication no. 6064293 of 28 July 2006 and consistent with the ESMA/2013/319 Recommendation

Net financial indebtedness decreased from € 104,563 thousand at 31 December 2017 to € 96,345 thousand at 30 June 2018. Net financial indebtedness at 30 June 2018 includes: € 53,122 thousand in liabilities linked to the purchase of minority interests for Put options, € 3,697 thousand in liabilities for contingent consideration linked to the acquisitions and € 9,535 thousand in liabilities for price deferments granted by sellers.

The change in the item Other current financial debt almost entirely offset by a similar change of opposite sign of the item Other non-current financial debt is attributable to the reclassification from "non-current" to "current" of the PUT options expiring in the first half of 2019, in addition to the debt of € 25 million to parent company Tecno Holding S.p.A.

The main factors impacting the change in Net financial indebtedness are summarised below.

Net financial indebtedness at 31/12/2017	104,563
Free Cash Flow	-22,730
Dividends resolved	12,067
Adjustment for PUT options	2,550
IFRS 9 adjustment	-682
NFP Camerfirma group (30/4/2018)	-461
Net financial (income) charges	995
Other residual	44
Net financial indebtedness at 30/6/2018	96,345

• The Free Cash Flow generated during the period amounted to € 22,730 thousand, of which €29,875 thousand in Net cash and cash equivalents generated by operations net of € 7,144 thousand absorbed by investments in property, plant and equipment and intangible assets.

Dividends resolved for € 12,067 thousand, of which € 5,547 thousand from Group companies to minority interests and € 6,520 resolved by Tecnoinvestimenti S.p.A.
The IFRS 9 adjustment at 1 January 2018 resulted in a reduction in bank debt of € 682 thousand, to account for the change in cash flows following the refinancing that took place in 2017 (pursuant to Note 28 of the 2017 Consolidated Financial Statements), to be immediately recognised in profit/(loss) for the year in accordance with IFRS 9.

KEY EVENTS SUBSEQUENT TO THE END OF FIRST HALF 2018

On 5 July 2018, the company Innolva S.p.A. completed its acquisition of Comas S.r.l. and Webber S.r.l., two companies active in the sale of business and real estate information through the internet. The transaction is part of the broader strategy aimed at strengthening the positioning on the web and increasing Innolva's market share. Comas S.r.l. and Webber S.r.l., respectively established in 1976 and 2013, are predominantly active in the resale, through the internet, of business information such as filings with Chambers of Commerce, property cadastral registries, the automobile registry and the Registry Office, court certificates, reports on natural and legal persons and other information services. Through the Comas and Webber web sites, Innolva will commercialize its higher value-added products, such as business information, marketing lists, scoring and rating, and will invest in its positioning, starting from this platform that boasts approximately 2.5 million unique visitors per year. The total consideration for the two companies amounts to € 9.25 million, of which € 0.49 million paid, as a deferred price, over 5 years with regular payments. The transaction will be funded by internal resources.

On 9 July 2018, Tecnoinvestimenti S.p.A. signed two Capped Swap derivative contracts with UBI Banca. These derivative contracts were stipulated to hedge the risk connected to variability in the cash flows due to fluctuation in the Euribor 6-month interest rate (Cash Flow Hedge) on the Cariparma Line B and UBI loans, which expire on 30 June 2023 (as better defined in Note 30 to the Condensed Interim Consolidated Financial Statements). Both contracts envisage a maximum Euribor 6-month rate of 1.5%.

On 12 July 2018, Tecnoinvestimenti S.p.A. completed the purchase of an additional 10% of Co.Mark S.p.A., which operates in the Innovation & Marketing Services Business Unit, for a total amount of € 6,296 thousand, following exercising of the second put option by minority shareholders within the contractually envisaged times. The initial acquisition contract for 70% of the share capital indeed envisaged that the remaining 30%, held by the founding shareholders, be subject to Put&Call option rights, which may be exercised in three annual tranches of 10% each, at a price calculated through the application of a variable multiple on annual EBITDA, taking into account the net financial position and on the basis of the growth rates recorded. Tecnoinvestimenti's stake in Co.Mark S.p.A. has thus risen to 90%.

On 23 July 2018, following the resignation of Mr. Alessandro Barberis, director as well as Deputy Chairman, the Board of Directors co-opted Mr. Gian Paolo Coscia, as first non-elected candidate from the majority list in the Shareholders' Meeting of 24 April 2018 (the same list that included the outgoing director).

OUTLOOK

Tecnoinvestimenti will continue its policy to integrate Group companies, maximising growth opportunities and synergies, and developing externally as well, which remains a central element of its strategy.

The solid results achieved in the first six months of the year, the positive growth trend of our businesses and the consolidation of recently acquired companies permit the confirmation that the growth targets for the current year, as outlined in the 2018-2020 Business Plan, will be amply achieved.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

30 June 2018 Statements and Notes

Consolidated Financial Statements

Consolidated Statement of Financial Position

in thousands of Euro	Notes	30/6/2018	31/12/2017
ASSETS
Property, plant and equipment	14	8,047	8,287
Intangible assets and goodwill	15	254,102	252,693
Equity-accounted investments	16	183	25
Other investments	16	29	49
Other financial assets, excluding derivative financial instruments	17	850	543
- of which vs Related parties	44	8	0
Derivative financial instruments	25	37	40
Deferred tax assets	18	8,573	5,556
Trade and other receivables	21	1,014	643
Contract cost assets	19	4,413	n.a.
NON-CURRENT ASSETS		277,248	267,836
Inventories	22	963	2,072
Other financial assets, excluding derivative financial instruments	23	4,110	4,311
Current tax assets	24	1,490	1,990
- of which vs Related parties	44	1,133	1,167
Trade and other receivables	21	83,211	80,285
- of which vs Related parties	44	473	563
Contract assets	20	5,365	n.a.
Contract cost assets	19	1,461	n.a.
Cash and cash equivalents	26	43,352	36,987
Assets held for sale		199	199

CURRENT ASSETS		140,152	125,843
TOTAL ASSETS		417,400	393,679
EQUITY AND LIABILITIES
Share capital		46,573	46,573
Reserves		88,387	96,207
Shareholders' equity attributable to the Group		134,961	142,780
Minority interests		3,527	537
TOTAL SHAREHOLDERS' EQUITY	27	138,487	143,317
LIABILITIES
Provisions	28	1,484	1,598
Employee benefits	29	11,599	10,977
Financial liabilities, excluding derivative financial instruments	30	57,769	123,935
- of which vs Related parties	44	0	25,000
Derivative financial instruments	25	189	202
Deferred tax liabilities	18	9,459	9,345
Contract liabilities	32	6,958	n.a.
Deferred revenue and income	32	n.a.	1,437
NON-CURRENT LIABILITIES		87,458	147,493
Provisions	28	130	342
Employee benefits	29	388	360
Financial liabilities, excluding derivative financial instruments	30	85,845	21,723
- of which vs Related parties	44	25,248	252
Derivative financial instruments	25	3	0
Trade and other payables	31	52,434	47,725
- of which vs Related parties	44	227	242
Contract liabilities	32	41,025	n.a.
Deferred income	33	551	n.a.
Deferred revenue and income	32	n.a.	26,593
Current tax liabilities	24	11,078	6,125
- of which vs Related parties	44	1,998	2,395
CURRENT LIABILITIES		191,455	102,869
TOTAL LIABILITIES		278,913	250,362
TOTAL EQUITY AND LIABILITIES		417,400	393,679

Consolidated Statement of Profit or Loss and other comprehensive income

Six-month period closed at 30 June 20175 in thousands of Euro Notes 2018 Revenues 34 114,510 85,404 - of which vs Related parties 44 1,145 167 - of which non-recurring 34 179 0 Costs of raw materials 35 2,875 2,843 Service costs 36 38,657 33,347 - of which vs Related parties 44 635 736 - of which non-recurring 36 401 757 Personnel costs 37 38,447 29,801 - of which non-recurring 37 134 380 Contract costs 38 4,644 n.a. Other operating costs 39 1,014 1,028 - of which vs Related parties 44 3 13 Amortisation and depreciation 40 6,292 5,178 Provisions 40 -117 0 Impairment 40 890 818 Total costs 92,702 73,015 OPERATING PROFIT 21,808 12,389 Financial income 82 899 - of which non-recurring 0 747 Financial charges 1,077 972 - of which vs Related parties 248 248 Net financial income (charges) 41 -995 -74 Share of profit of equity-accounted investments, net of tax 16 30 2 PROFIT BEFORE TAX 20,843 12,318 Income taxes 42 6,240 3,701 - of which non-recurring -104 -294 NET PROFIT FROM CONTINUING OPERATIONS 14,603 8,617 Profit (loss) from discontinued operations, net of tax 0 0 NET PROFIT 14,603 8,617 Other components of the comprehensive income statement Components that will never be reclassified to profit or loss Actuarial gains (losses) of employee benefit provisions Equity-accounted investees - share of OCI Tax effect 0 0 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 0 -5 Profits (losses) from measurement at fair value of derivative financial 6 20 instruments Equity-accounted investees - share of OCI -1 0 Tax effect -1 -5 Total components that are or may be later reclassified to profit (loss) 4 10 Total other components of comprehensive income, net of tax 4 10 Total comprehensive income for the period 14,607 8,627 Net profit attributable to: Group net profit 14,206 8,584 Net profit of minority interests 397 33 Total comprehensive income for the period attributable to: Group 14,209 8,594 Minority interests 397 33 Earnings per share Basic earnings per share (Euro) 43 0.31 0.19 Diluted earnings per share (Euro) 43 0.30 0.18

⁵ The comparative data for First Half 2017 were re-stated in relation to the completion, in the second half of 2017, of identification of the fair values of the assets and liabilities of Sixtema S.p.A., consolidated on a line-by-line basis from 1 April 2017. For additional information, see the paragraph Information on the comprehensive income statement in the Notes.

Consolidated Statement of Changes in Equity

									Six-month period closed at 30 June 2018
in thousands of Euro	Share capital	Legal reserve	Share premium reserve	Hedging derivatives reserve	Defined benefits reserve	Other reserves	Shareholders' equity attributable to the Group	Minority interests	Consolidated Shareholders' Equity
Balance at 31 December 2017	46,573	1,433	53,917	-154	-395	41,405	142,780	537	143,317
Effect of adoption of IFRS 15						-8,357	-8,357	4	-8,353
Effect of adoption of IFRS 9						519	519		519
Balance at 1 January 2018	46,573	1,433	53,917	-154	-395	33,567	134,941	541	135,482
Comprehensive income for the period
Profit for the period						14,206	14,206	397	14,603
Other components of the comprehensive income				5		-1	4	0	4
Total comprehensive income for the period	0	0	0	5	0	14,205	14,209	397	14,607
Transactions with shareholders
Dividends						-11,629	-11,629	-437	-12,067
Allocation to legal reserve		598				-598	0		0
Adjustment of put option on minority interests						-2,550	-2,550		-2,550
Acquisitions						0	0	3,000	3,000
Other changes						-11	-11	26	14
Total transactions with shareholders	0	598	0	0	0	-14,789	-14,191	2,588	-11,602
Balance at 30 June 2018	46,573	2,031	53,917	-149	-395	32,982	134,961	3,527	138,487

									Six-month period closed at 30 June 2017
in thousands of Euro	Share capital	Legal reserve	Share premium reserve	Hedging derivatives reserve	Defined benefits reserve	Other reserves	Shareholders' equity attributable to the Group	Minority interests	Consolidated Shareholders' Equity
Balance at 1 January 2017	46,256	1,136	53,156	-173	-343	29,701	129,734	187	129,921
Comprehensive income for the period
Profit for the period						8,584	8,584	33	8,617
Other components of the comprehensive income				15		-5	10		10
Total comprehensive income for the period	0	0	0	15	0	8,579	8,594	33	8,627
Transactions with shareholders
Dividends						-6,949	-6,949	-28	-6,977
Allocation to legal reserve		297				-297	0		0
Adjustment of put option on minority interests						-3,604	-3,604		-3,604
Acquisitions of minority equity investments						-194	-194		-194
Other changes						-11	-11		-11
Total transactions with shareholders	0	297	0	0	0	-11,056	-10,759	-28	-10,787
Balance at 30 June 2017	46,256	1,433	53,156	-158	-343	27,225	127,569	192	127,762

Consolidated Statement of Cash Flows

	Six-month period closed at 30 June
	Notes	2018	2017
Cash flows from operations
Net profit		14,603	8,617
Adjustments for:
- Depreciation of property, plant and equipment	40	1,775	1,309
- Amortisation of intangible assets	40	4,517	3,869
- Write-downs (Revaluations)	40	890	818
- Provisions	40	-117	0
- Contract costs	38	4,644	n.a.
- Net financial charges	41	995	74
- of which vs Related parties	44	248	248
- Share of profit of equity-accounted investments	16	-30	-2
- Income taxes	42	6,240	3,701
Changes in:
- Inventories		101	170
- Contract cost assets		-6,749	n.a.
- Trade and other receivables and Contract assets		-8,107	-4,662
- of which vs Related parties		90	-151
- Trade and other payables		3,800	3,074
- of which vs Related parties		-15	-13
- Provisions and employee benefits		349	86
Contract liabilities and deferred income, including public contributions		7,076	3,249
Cash and cash equivalents generated by operations		29,987	20,303
Income taxes paid		-112	-2,869
Net cash and cash equivalents generated by operations		29,875	17,434
Cash flows from investments
Interest collected		39	26
Collections from sale of financial assets	16,23	450	3,423
Investments in property, plant and equipment	14	-1,414	-864
Investments in other financial assets		0	-85
Investments in intangible assets	15	-5,730	-1,213
Increases in the scope of consolidation, net of liquidity acquired	12	286	1,124
Decreases in the scope of consolidation, net of liquidity acquired	13	-23	0
Net cash and cash equivalents generated/(absorbed) by investing activities		-6,392	2,411
Cash flows from financing
Purchase of minority interests in subsidiaries		0	-35,057
Interest paid		-799	-1,016
- of which vs Related parties		-252	-156
MLT bank loans taken out		0	2,196
Repayment of MLT bank loans	30	-3,976	-2,145
Repayment of price deferment liabilities on acquisitions of equity investments	30	-1,522	-1,400
Repayment of contingent consideration liabilities	30	-372	-909
Change in other current bank payables	30	-486	1,831
Change in other current financial payables	30	767	519
Repayment of finance lease liabilities	30	-119	-59

Capital increases - subsidiaries		2	0
Dividends paid		-10,611	-6,977
Net cash and cash equivalents generated/(absorbed) by financing		-17,117	-43,017
Net increase (decrease) in cash and cash equivalents		6,366	-23,172
Cash and cash equivalents at 1 January		36,987	60,431
Cash and cash equivalents at 30 June		43,352	37,259

Notes to the Condensed Interim Consolidated Financial Statements at 30 June 2018

1. ENTITY THAT PREPARES THE FINANCIAL STATEMENTS

Tecnoinvestimenti S.p.A. (the "Parent Company") has its offices in Italy. The Condensed Interim Consolidated Financial Statements at 30 June 2018 include the financial statements of the Parent Company and its subsidiaries (jointly, the "Group"). The Group is mainly active in the Digital Trust, Credit Information & Management and Innovation & Marketing Services sectors. These Condensed Interim Consolidated Financial Statements at 30 June 2018 were approved and authorised for publication by the Board of Directors of Tecnoinvestimenti S.p.A. at its meeting on 2 August 2018.

The shares of the Parent Company are listed on the Electronic Equity Market (MTA) managed by Borsa Italiana S.p.A., STAR segment. At the date of preparation of these Condensed Interim Consolidated Financial Statements, Tecno Holding S.p.A. (the 'Majority shareholder") is the shareholder with an absolute majority of Tecnoinvestimenti S.p.A. shares. The Majority shareholder does not exercise management nor coordination activities for Tecnoinvestimenti.

2. PREPARATION CRITERIA AND COMPLIANCE WITH IFRS

These Condensed Interim Consolidated Financial Statements prepared in accordance with art. 154-ter of Legislative Decree no. 58/98 - CFA - and subsequent amendments and additions, have been prepared in accordance with the International Financial Reporting Standards (IFRS), the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC), approved by the European Commission and in force at the reporting date, as well as the previous International Accounting Standards (IAS). In particular, said Condensed Interim Consolidated Financial Statements prepared in accordance with IAS 34 "Interim Financial Statements" do not include all the information required by the annual financial statements and should be read together with the Consolidated Financial Statements for the year ended 31 December 2017 (the "last financial statements") filed at the head office of the Company and available on the website www.tecnoinvestimenti.it.

While not including all the information required for complete disclosure of the Financial Statements, they include specific notes to explain the events and transactions that are relevant for an understanding of the changes in the Statement of financial position and the performance of the Group since the last Financial Statements. These Financial Statements are consistent with those that make up the annual Consolidated Financial Statements, except for the items introduced as a result of IFRS 15, adopted from 1 January 2018.

3. PRESENTATION CRITERIA

The Condensed Interim Consolidated Financial Statements consist of the Statement of financial position, Statement of profit or loss and other comprehensive income, Statement of changes in equity, Statement of cash flows and these Notes that follow.

It is specified that:

the Statement of financial position has been prepared by classifying assets and liabilities according to the "current/non-current" criteria;
the Statement of profit/(loss) and other items of the comprehensive income statement is classified on the basis of the nature of costs;
the Statement of cash flows is presented using the indirect method.

In accordance with Consob Resolution no. 15519 of 28 July 2006, the Statement of Profit/(Loss) separately identifies, if any, income and charges arising from non-recurring transactions; similarly, shown separately in the Financial statements are the Balances of transactions with Related parties which are further described in Note 44. Transactions with Related parties.

The Condensed Interim Consolidated Financial Statements are presented in Euro, the functional currency of the Parent Company and its subsidiaries (except for Camerfirma Perù S.A.C., whose functional currency is the PEN) and all values are expressed in Euro thousands unless otherwise indicated.

The accounting standards adopted for the preparation of these Condensed Interim Consolidated Financial Statements are the same as those adopted for the drafting of the Group's annual Consolidated Financial Statements for the year ended 31 December 2017, with the exception of the new principles applied from 1 January 2018 (indicated in Note 7: New standards or amendments for 2018 and future requirements - a). Specifically, IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments" have led to changes in accounting policies and in some cases adjustments to the amounts entered in the accounts (the effects of the adoption of said standards are illustrated in detail in aforementioned Note 7).

4. SCOPE OF CONSOLIDATION AND CONSOLIDATION CRITERIA

The Condensed Interim Consolidated Financial Statements include the financial statements of the Parent Company Tecnoinvestimenti S.p.A. and the companies over which the Company has the right to exercise, directly or indirectly, control as defined by IFRS 10 "Consolidated Financial Statements".

For the purposes of the assessment of the existence of control, the three necessary elements are all present: • power to control the company;

• exposure to the risk or the rights deriving from the variable returns linked to its involvement;

• ability to influence the company, to the extent of conditioning the results (positive or negative) for the investor (correlation between power and exposure to risks and benefits).

Control can be exercised both on the basis of the direct or indirect possession of the majority of the stocks with voting rights, on the basis of contractual or legal agreements, independently from the possession of stocks. In assessing these rights, we take into account the power to exercise these rights independently from their effective exercise and all potential voting rights are considered.

With respect to 31 December 2017, the scope of consolidation at 30 June 2018 acknowledges the line-byline consolidation, from 1 May 2018, of the investment in AC Camerfirma SA and its subsidiary Camerfirma Perù S.A.C., as better specified in Note 12: Business combinations, as well as the deconsolidation of Creditreform Assicom Ticino SA from 1 June 2017, following the sale completed on 22 May 2018.

The list of companies consolidated on a line-by-line basis or with the equity method at 30 June 2018 is shown in the following table.

					at 30 June 2018
Company	Registered office	Share capital				%
		Amount	Currenc	% ownership	via	contributio n to the	Consolidation method
		(in thousands of Euro)	y			Group
Tecnoinvestimenti S.p.A. (Parent Company)	Rome	46,573	Euro	n.a.	n.a.	n.a.	n.a.
InfoCert S.p.A.	Rome	17,705	Euro	99.99%	-	99.99%	Line-by-line
Innolva6 S.p.A.	Buja (UD)	3,000	Euro	100.00%	-	100.00%	Line-by-line
Re Valuta S.p.A.	Milan	200	Euro	83.13%	-	95.00%	Line-by-line
Co.Mark S.p.A.	Bergamo	150	Euro	80.00%	-	100.00%	Line-by-line
Visura S.p.A.	Rome	1,000	Euro	60.00%	-	100.00%	Line-by-line
Warrant Group S.r.l.	Correggio (RE)	58	Euro	70.00%	-	100.00%	Line-by-line
Sixtema S.p.A.	Rome	6,180	Euro	80.00%	InfoCert S.p.A.	99.99%	Line-by-line
AC Camerfirma S.A.	Spain	3,421	Euro	51.00%	InfoCert S.p.A.	50.99%	Line-by-line
Camerfirma Perù S.A.C	Peru	1	PEN	99.80%	AC Camerfirma S.A.	50.89%	Line-by-line
Co.Mark TES S.L.	Spain	36	Euro	99.00%	CoMark S.p.A.	99.00%	Line-by-line
Lextel S.p.A.	Rome	2,500	Euro	100.00%	Visura S.p.A.	100.00%	Line-by-line
Isi Sviluppo Informatico S.r.l.	Parma	31	Euro	92.00%	Visura S.p.A.	92.00%	Line-by-line
Warrant Innovation Lab Scarl	Correggio (RE)	25	Euro	96.43%	Warrant Group S.r.l.	96.81%	Line-by-line
Warrant Service S.r.l.	Correggio (RE)	40	Euro	50.00%	Warrant Group S.r.l.	50.00%	Line-by-line
Bewarrant S.r.l.	Belgium	12	Euro	100.00%	Warrant Group S.r.l.	100.00%	Line-by-line
Etuitus S.r.l.	Salerno	50	Euro	24.00%	InfoCert S.p.A.	24.00%	Shareholders' equity
Creditreform Assicom Ticino S.A.	Switzerland	100	CHF	30.00%	Innolva S.p.A.	30.00%	Shareholders' equity
Innovazione 2 Sagl	Switzerland	20	CHF	30.00%	Warrant Group S.r.l.	30.00%	Shareholders' equity

The percentage of ownership indicated in the table refers to the portions actually owned by the Group at the reporting date. The percentage of contribution refers to the contribution to the equity of Group of the individual company as a result of the recognition of the additional equity investment in the consolidated company as a result of the recognition of the put options granted to the minority shareholders on the portions in their possession.

The accounting positions of subsidiaries are consolidated from the date on which control was acquired. In particular, for Camerfirma S.A. and for the subsidiary Camerfirma Perù S.A.C., the consolidation was carried out from 1 May 2018.

All accounting positions used for the preparation of the Condensed Interim Consolidated Financial Statements have been drafted at 30 June 2018 and adjusted, where necessary, to make them consistent with the accounting standards applied by the Parent Company.

The criteria adopted for line-by-line consolidation are the following:

assets and liabilities, expenses and revenue of the subsidiaries are consolidated line by line, attributing to the minority shareholders, if applicable, the portion of equity and net profit for the period that pertains to them; these portions are shown separately within equity and the income statement.
business combinations are recognised in accordance with the provisions of IFRS 3 Business Combinations according to the Acquisition method. The cost of acquisition is represented by the current value ("fair

⁶ On 26 April 2018, Assicom Ribes changed its name to Innolva S.p.A.

value") at the time of the acquisition of the assets sold, the liabilities taken on and the equity instruments issued. The identifiable assets, liabilities and potential liabilities acquired are recognised at their current value at the time of the acquisition, with the exception of deferred tax assets and liabilities, assets and liabilities for employee benefit obligations, and assets held for sale, which are recognised on the basis of the corresponding reference accounting standards. The difference between the cost of acquisition and the current value of the assets and liabilities acquired is recognised as goodwill in intangible assets, if positive; if negative, after checking the correct measurement of the current values of the assets and liabilities acquired and the acquisition cost, it is recognised directly in the income statement, as revenue.

The accessory charges related to the acquisition are recognised in the income statement at the time in which the services are provided.
In the case of purchase of controlling interests of less than 100% of share capital, goodwill is recognised only for the part attributable to the Parent Company. The value of non-controlling interests is calculated in proportion to the portions of equity investment held by third parties in the net identifiable assets of the acquired company.
If the business combination was carried out in multiple stages, at the time of the acquisition of control the equity investments previously held are re-measured at fair value and any difference (positive or negative) is recognised in the income statement.
In the case of the purchase of minority interests, after control has been obtained, the positive differential between acquisition cost and the carrying amount of the minority interests acquired is deducted from the equity of the Parent Company. In the case of sales of equity investments that do not involve a loss of control, instead, the difference between sale price and carrying amount of the equity investments sold is recognised directly to equity (as an increase), without passing through the income statement.
The items deriving from relations between the consolidated companies are cancelled, especially those deriving from outstanding receivables and payables at the end of the year, costs and revenue as well as financial charges and income recognised in the income statements of these companies. Realised profits and the losses between the consolidated companies with the related tax adjustments are also cancelled.

ASSOCIATED COMPANIES

Associated companies are those on which the Group exercises a significant influence, which is assumed to exist when the equity participation holds between 20% and 50% of voting rights. Equity investments in associated companies are valued with the equity method and are initially recognised at cost. The equity method is described below:

the carrying amount of the equity investments is aligned with the equity adjusted, if necessary, to reflect the application of IFRS and includes the recognition of the greater/lower values allocated to the assets and to the liabilities, and any goodwill identified at the time of the acquisition;
the profits or losses attributable to the Group are recognised from the date on which the significant influence starts and until the date the significant influence ceases. If, as a result of the losses, the Company measured with the method in question reports negative equity, the carrying value of the equity investment is cancelled and any excess attributable to the Group, where the latter is committed to fulfil legal or implicit obligations of the associated company, or in any case to cover its losses, is recognised in a specific reserve; the changes in the equity of the Company valued with the equity method are not represented in the income statement, but are recognised directly among the other components of comprehensive income;
unrealised profits and losses on transactions carried out between the Company/subsidiaries and the associated company measured with the equity method, including distributed dividends, are eliminated on the basis of the value of the equity investment of the Group in the associated company, excluding losses if these are representative of a decrease in value of the underlying assets.

5. TRANSLATION OF FINANCIAL STATEMENTS EXPRESSED IN CURRENCIES OTHER THAN THE PRESENTATION CURRENCY

The rules for the translation of the financial statements expressed in currencies different from the currency of presentation (excluding situations in which the currency belongs to a hyper-inflation country, which is not the case for the Group), are the following:

• assets and liabilities included in the statements presented are translated at the exchange rate at the end for the period;

• costs, revenue, expenses and proceeds included in the statements presented are translated at the average exchange rate of the period, or else at the exchange rate at the time of the transaction if this differs significantly from the average exchange rate;

• the "translation reserve" includes both the exchange rate differences generated from the conversion of income statement items at a rate different from that at the end of the period and those generated from the translation of net opening assets at an exchange rate different from that at the end of the reporting period. The translation reserve is transferred to the income statement at the time of the full or partial sale of the equity investment when this sale involves the loss of control.

Goodwill and the adjustments deriving from the measurement at fair value of the assets and liabilities resulting from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the end of period exchange rate.

6. SECTOR INFORMATION

Information regarding the business segments has been prepared in accordance with IFRS 8 "Operating Segments", which provides information consistently with the manner adopted by management to make operating decisions. Therefore, the identification of the operating segments and the information presented are defined on the basis of the internal reports used by the management to allocate resources to the different units and to analyse their performance.

An operating segment is defined by IFRS 8 as the component of an entity (i) that carries out business activities generating revenue and costs (including revenue and costs for transactions with other components of the same entity); (ii) the operating results of which are reviewed regularly at the highest decisional level of the entity to make decisions on the resources to be allocated to the sector and the measurement of the performance; (iii) for which separate financial statement information is available.

The operating units identified by management, which encompass all the services and products provided to the clients, are:

Digital Trust
Credit Information & Management
Innovation & Marketing Services

With respect to First Half 2017, the Group has adopted IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments", which have led to changes in accounting policies and adjustments to the amounts entered in the accounts; the comparative data for 2017 have not been restated. The economic data for First Half 2018 underwent changes due to:

the consolidation as of 1 April 2017 of the company Sixtema S.p.A. (fully allocated to the Digital Trust sector);
the consolidation as of 1 December 2017 of the Warrant group (fully allocated to the Innovation & Marketing Services sector);
the consolidation as of 1 May 2018 of the company AC Camerfirma S.A. and its subsidiary Camerfirma Perù S.A.C. (fully allocated to the Digital Trust sector);

• deconsolidation as of 1 June 2018 of Creditreform Assicom Ticino S.A. (previously fully allocated to the Credit Information & Management sector);

The results of the operating segments are measured and revised periodically by management by analysing trends in EBITDA, defined as "Net profit" before "Taxes", "Net financial income (charges)", "Portion of profits from equity-accounted investments", "Amortisation/depreciation", "Provisions" and "Impairment", i.e., as "Revenue" net of "Costs of raw materials", "Service costs", "Personnel costs", "Contract costs" and "Other operating costs".

Specifically, management believes that EBITDA provides a good indication of the performance since it is not influenced by tax laws and amortisation policies.

In thousands of Euro			Credit Information		Innovation &		Other units
Six-month period closed at 30 June	Digital Trust		& Management		Marketing Services		(Parent Company)		Total
	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
Segment revenue	45,799	39,215	37,296	36,921	31,656	9,407	330	251	115,082	85,794
Intra-unit revenue	117	32	125	109	0	0	330	250	572	390
Revenue from external customers	45,682	39,184	37,170	36,813	31,656	9,407	0	1	114,510	85,404

We provide below the representation of the Revenue and EBITDA for the individual operating units.

EBITDA	28,873	18,386
Am., prov. and impairment	7,066	5,996
Operating profit	21,808	12,389
Net financial income (charges)	-995	-74
Profit of equity-accounted investments	30	2
Profit before tax	20,843	12,318
Income taxes	6,240	3,701
Net profit	14,603	8,617

We provide below the breakdown of the assets and liabilities by business units.

In thousands of Euro		Digital Trust		Credit Information & Management		Innovation & Marketing Services		Other units (Parent Company)		Total
	30/6/2018	31/12/2017	30/6/2018	31/12/2017	30/6/2018	31/12/2017	30/6/2018	31/12/2017	30/6/2018	31/12/2017
Assets	122,871	90,683	160,008	159,634	146,812	138,134	-12,291	5,228	417,400	393,679
Liabilities	84,490	63,272	63,723	63,905	105,887	94,834	24,813	28,352	278,913	250,362

7. NEW STANDARDS OR AMENDMENTS FOR 2018 AND FUTURE REQUIREMENTS

ACCOUNTING STANDARDS AND AMENDMENTS TO THE STANDARDS ADOPTED BY THE COMPANY

a) From 1 January 2018, the Group adopted the following new accounting standards:
IFRS 15 "Revenue from Contracts with Customers", endorsed by the EU on 29 October 2016 with Regulation no. 1905, and "Clarifications to IFRS 15 Revenue from Contracts with Customers", endorsed by the EU on 9 November 2017 with Regulation no. 291. IFRS 15 defines the criteria for recognition and

measurement of revenues from contracts with customers. In brief, the standard requires the analysis of the following 5 steps for revenue recognition: (i) identification of the contract; (ii) identification of the performance obligations contained in the contract; (iii) determination of the transaction price; (iv) allocation of the price envisaged by the contract to the performance obligations; (v) recognition of revenues.

The Group opted for retrospective application of IFRS 15, accounting for the cumulative effect of the initial application at 1 January 2018 with reference only to contracts that had not been completed at the date of initial application.

In the Digital Trust Business Unit a total of € 8.6 million in lower equity reserves was recorded at 1 January 2018, due to:

recognition over time of services, measured at point in time in accordance with IAS 18, in relation to the model based on the transfer of risks and rewards and the correlation with costs incurred (€ 7.4 million in lower reserves);
recognition over time, throughout the expected term of the contract, of the initial consideration (and correlated costs) charged to the customer and which may not be reimbursed relating to some solutions that provide the possibility for customers to access an ad-hoc platform from which they can take advantage of a series of services within a period of time, previously recognised in correlation with the costs incurred to provide access to the platform (€ 1.5 million in lower reserves);
early recognition of unrecognised rights (breakage) in the presence of services that require advance payment (€ 0.3 million in greater reserves).

In the Innovation & Marketing Services Business Unit an increase of € 0.2 million in Shareholders' equity reserves was recognised at 1 January 2018, due to the different trend in the amortisation, pursuant to IFRS 15, of contractual costs linked to obtaining contracts.

In the Credit Information & Management Business Unit no significant effects were recorded on Shareholders' equity as at 1 January 2018.

• IFRS 9 - "Financial instruments", endorsed by the EU on 29 November 2016 with Regulation no. 2067. Starting from 1 January 2018, IFRS 9 "Financial instruments" replaced IAS 39 "Financial Instruments: Recognition and Measurement", identifying a new set of accounting rules applicable to the classification and measurement of Financial Instruments, to the impairment of loans and to hedge accounting. Moreover, among other things, IFRS 9 envisages that in the event that a change or exchange of financial liability does not involve an accounting elimination, any effects arising from recalculation of the value of the new liability using the modified cash flows and the original effective interest rate must be recognised immediately in the profit for the period, contrary to what was envisaged by IAS 39, according to which the new financial liability was accounted for in the future. On the other hand, the costs and commissions sustained for the change continue to be recognised as a direct adjustment to the book value of the amended financial liability and amortised at the effective interest rate throughout the life of the instrument.

Adjustment to IFRS 9 at 1 January 2018 involved recognition of greater reserves of Shareholders' equity for € 0.5 million, to account for the effects of changes in cash flows relative to refinancing during 2017, recognised prospectively in accordance with IAS 39, for which IFRS 9 requires immediate recognition in the income statement.

• IFRS 2 - "Share-based Payment", endorsed by the EU on 26 February 2018 with Regulation no. 289. The document "Classifications and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)" resolved some issues relating to the accounting of share-based payments. In particular, this amendment makes significant improvements to (i) the valuation of share-based payments settled in cash, (ii) the classification thereof and (iii) the method of accounting in case of modification from sharebased payments settled in cash to share-based payments settled with capital instruments.

IFRS 4 "Insurance Contracts", endorsed by the EU on 3 November 2017 with Regulation no. 1988. The document "Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts" aims to resolve the inconsistencies deriving from the deferment of the dates of entry into force of IFRS 9 and the new accounting standard on insurance contracts.
IFRIC 22 "Foreign Currency Transaction and Advance Consideration", endorsed by the EU on 28 March 2018 with Regulation no. 519. The document aims to provide clarification on the correct recognition of a transaction in foreign currency, in the case of payments made or received in advance with respect to the subject of the transaction to which the payments refer. The interpretation clarifies that the transaction date to be used for the conversion is the date on which the entity makes or receives the advance payment.
IAS 40 "Investment Property", endorsed by the EU on 14 March 2018. The document "Amendments to IAS 40: Transfers of Investment Property" aims to clarify the aspects relating to the treatment of transfers from and to property investments. In particular, the amendment clarifies that a transfer must be made if, and only if, there is an actual change in the use of the asset. A change in management's intention is not sufficient in itself for a transfer.
"Annual Improvements to IFRS Standards 2014-2016 Cycle", endorsed by the EU on 7 February 2018. The amendments introduced fall within the ordinary activity of rationalisation and clarification of international accounting standards.

With the exception of what is mentioned above with regard to IRFS 9 and IRFS 15, adoption of the new standards applicable from 1 January 2018 did not have any significant impacts.

b) Accounting standards and interpretations on standards effective for the financial years after 2018 and not adopted in advance by the Group:

On 12 October 2017, the IASB published some amendments to IFRS 9 Financial Instruments. The document "Prepayment features with Negative Compensation (Amendments to IFRS 9)" aims to amend the requirements of IFRS 9 with reference to the following two situations: (i) financial assets which contain prepayment options through negative compensation may now be valued at amortised cost or at fair value through other comprehensive income (FVOCI) if they meet the other relevant requirements of IFRS 9; (ii) new accounting criteria are introduced in the case of non-substantial amendments that do not entail a derecognition in the case of modifications or exchanges of fixed-rate financial liabilities. The amendments apply to financial statements relating to years beginning on 1 January 2019 or later; earlier application is permitted. Endorsement by the EU took place on 22 March 2018.
On 13 January 2016, the IASB published the new standard IFRS 16 "Leases", which replaces the current IAS 17. IFRS 16 is applicable from 1 January 2019. The new standard effectively eliminates the difference in the accounting of operating and financial leases despite the presence of elements that allow simplifying the application thereof and introduces the concept of control within the definition of leasing. In particular, in order to determine whether or not a contract represents a lease, IFRS 16 requires verifying whether or not the lessee has the right to control the use of a given asset for a certain period of time. Earlier application is permitted for entities that apply IFRS 15 - "Revenue from Contracts with Customers". Endorsement by the EU took place on 31 October 2017 with Regulation no. 1986.

As at the date of approval of these Condensed Interim Consolidated Financial Statements, the Group is conducting analyses in order to verify the existence of any impacts from application of these new accounting standards and interpretations.

c) Accounting standards and interpretations to be applied in the near future:

At the date of the approval of these Consolidated Financial Statements, a few accounting standards, interpretations and amendments had been issued by IASB, but not yet ratified by the European Union, some of which still in the consultation stage, among which we note:

On 18 May 2017, the IASB published the new standard IFRS 17 "Insurance Contracts", which replaces the current IFRS 4. The new standard on insurance contracts aims to enhance the transparency of sources of profit and quality of earnings realised and to guarantee greater comparability of results, introducing a single standard for the recognition of revenues which reflects the services provided. IFRS 17 applies to financial statements relating to years beginning on 1 January 2021, or later. EFRAG's Endorsement Process is still under way.
On 7 June 2017, the IASB published the interpretation IFRIC 23 "Uncertainty over Income Tax Treatments", which provides indications on how to reflect uncertainties on the tax treatment of a given transaction or circumstance in accounting for income taxes. IFRIC 23 applies to financial statements relating to years beginning on 1 January 2019, or later. The Endorsement Process took place on 6 November 2017, while ratification by the EU is expected in the third quarter of 2018.
On 12 October 2017, the IASB published some amendments to IAS 28 "Investments in associates and joint ventures". The document "Long-term interests in Associates and Joint Ventures (Amendments to IAS 28)" aims to clarify several aspects in cases in which companies finance associates and joint ventures with preference shares or through loans for which repayment is not required in the foreseeable future ("Long-Term Interests" or "LTI"). The amendments apply to financial statements relating to years beginning on 1 January 2019 or later; earlier application is permitted. The Endorsement Process took place on 24 April 2018, while ratification by the EU is expected by the end of 2018.
On 12 December 2017, the IASB published the document "Annual Improvements to IFRS Standards 2015-2017 Cycle". The amendments introduced, falling within the ordinary activity of rationalisation and clarification of international accounting standards, are related to the following standards: (i) IFRS 3 - Business Combinations and IFRS 11 - Joint Arrangements: the IASB clarified how to account for increases in interests in a business that is a joint operation; (ii) IAS 12 - Income Taxes: the IASB clarified that the tax effects correlated with the payment of dividends (including payments relating to financial instruments classified in shareholders' equity) are recognised consistently with the underlying transactions or events that generated the amounts subject to distribution (e.g., recognition in the statement of profit/(loss), in OCI or in shareholders' equity); (iii) IAS 23 - Borrowing Costs: the IASB clarified that general borrowings for the calculation of borrowing costs to be capitalised on qualifying assets do not include the borrowings that are specifically relative to qualifying assets in the construction or development phase. When such qualifying assets are available for use, the relative borrowings are considered general borrowings for the purposes of IAS 23. The amendments apply to financial statements relating to years beginning on 1 January 2019 or later; earlier application is permitted. The Endorsement Process took place on 21 March 2018, while ratification by the EU is expected by the end of 2018.
On 7 February 2018, the IASB published some amendments to IAS 19 "Employee Benefits". The document "Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)" clarifies several accounting aspects relating to amendments, reductions or settlements of defined benefit plans. The amendments apply for amendments, curtailments or settlements taking place as of 1 January 2019 or the date on which they are applied for the first time (early application is permitted). The EFRAG

Endorsement Process was completed on 28 May 2018, while ratification by the EU is expected in 2018.

• On 29 March 2018, the IASB published the revised version of the Conceptual Framework for Financial Reporting. The main amendments compared to the 2010 version include a new chapter on valuation, better definitions and guidance, with particular regard to the definition of liability, and clarifications of key concepts, such as stewardship, prudence and uncertainty in valuations. EFRAG's Endorsement Process is still under way.

The potential impact that the accounting standards, amendments and interpretations to be applied in the near future may have on the financial reporting of the Group are being examined and assessed.

8. USE OF ESTIMATES

In drafting these Condensed Interim Consolidated Financial Statements, in application of the reference accounting standards, the Directors had to formulate assessments, estimates and assumptions which influence the amounts of the assets, liabilities, and costs and revenues recognised in the financial statements, as well as the disclosure provided. Therefore, the final results of the items for which said estimates were used could differ from those reported in these financial statements, given the uncertainty that characterises the assumptions and the hypotheses on which the estimates are based.

The accounting standards and the financial statement items that involve a greater subjectivity by the Directors in the estimation process are the following:

Intangible assets with indefinite life: goodwill is assessed on an annual basis, to identify whether there is an impairment that should be recognised in the income statement. Specifically, the assessment in question requires the calculation of the recoverable amount of the CGU (Cash Generating Unit) to which goodwill is allocated. The recoverable amount is calculated by estimating the value in use or the fair value net of disposal costs; if the recoverable amount is less than the carrying amount of the CGU, goodwill is written down. The calculation of the recoverable amount of the CGU requires estimates based on factors that may change over time, with a potentially significant impact on the assessments carried out by Directors.
Allocation of the price paid for the acquisition of control over an entity (Purchase price allocation): In terms of business combinations, in exchange for the consideration transferred for the acquisition of control over a company, the identifiable assets acquired and the liabilities assumed are recognised in the consolidated financial statements at current values (fair value) at the acquisition date, through a purchase price allocation process. During the measurement period, the determination of such current values entails the assumption of an estimate by the directors relating to the information available on all facts and circumstances existing at the date of acquisition which may have effects on the value of the assets acquired and the liabilities assumed.
Impairment of fixed assets: tangible and intangible assets with finite useful life are assessed to establish whether there was a decrease in value, to be recognised with a write-down, if there are indications that it will be difficult to recover their net accounting value through use. To establish the presence of said indications, Directors must make subjective assessments on the basis of information available within the Company and the market, as well as historical experience. Moreover, if it is determined that a potential impairment loss may be generated, this loss is calculated using appropriate measurement techniques. The correct identification of the factors indicating the occurrence of a potential decrease in value, as well as the estimates for the calculation of these depend on factors that may vary over time, affecting the assessments and estimates carried out by the Directors.

• Measurement at fair value: in measuring the fair value of an asset or liability, the Company makes use of observable market data as far as possible. Fair values are allocated to different hierarchical levels on the basis of the input data used in the valuation techniques.

9. MANAGEMENT OF FINANCIAL RISK

The Group is exposed to financial risks connected with its operations, especially to the following:

interest rate risks, from the financial exposure of the Group;
exchange rate risks, from operations in currencies different from the functional currency;
liquidity risks, related to the availability of financial resources and access to credit markets;
credit risks, resulting from normal commercial transactions or financing activities.

The Tecnoinvestimenti Group monitors each financial risk closely, intervening with the objective of minimising them promptly also by making use of hedging derivatives.

Exchange rate risk

The exposure to the risk of changes in exchange rates derives from the execution of activities in currencies different from the Euro. The Group carries out most of its activity in Italy, and in any case most of the sales or purchases of services with foreign Countries are carried out with EU Countries; therefore, it is not significantly exposed to the risk of fluctuation of the exchange rates of foreign currencies against the Euro.

Interest rate risk

The Group uses external financial resources in the form of debt and uses the liquidity available in bank deposits. Changes in market interest rates influence the cost and return of the different types of borrowing and investment and therefore have an impact on the level of the financial charges and income.

Being exposed to interest rate fluctuations with regard to the extent of the financial charges incurred to borrow funds, the Group periodically reviews its exposure to the risk of changes in interest rates and manages it also by making use of interest rate derivatives, specifically Interest Rate Swaps (IRS) taken out only for hedging purposes. Details of Interest Rate Swaps and other derivative hedging instruments outstanding at 30 June 2018 are provided in Note 25. Derivative financial instruments. Cash mainly consists of variable-rate bank deposits, and therefore its fair value is close to the value recognised in the financial statements. The interest rate to which the Company is mostly exposed is the Euribor. Therefore, the risk of interest rate appears adequately monitored, given the current slope of the Euribor rate curve.

Credit risk

Financial credit risk results from the inability of a counterparty to fulfil its obligations. As at 30 June 2018, the liquidity of the Group was invested in bank deposits held at prime credit institutions.

Trade credit risk derives essentially from receivables from clients. To mitigate credit risk from trade counterparties, the Group has implemented internal procedures requiring a preliminary assessment of the solvency of the client before accepting a contract, through a rating analysis. Another procedure was adopted for the recovery and management of trade receivables, which provides for written reminders to be sent in the case of late payments and gradually more targeted actions (letters, phone reminders, legal actions). Lastly, trade receivables recognised in the Balance Sheet are analysed individually and if a position is believed to be objectively impossible to collect, in part or fully, it is written down. The amount of the write-down is based on an estimate of the flows that may be collected and their collection date. Against receivables that are not subject to individual impairment, provisions are made on a collective basis, based on historical experience and statistical and forecasted data.

The table provided in Note 21 - Trade and Other Receivables provides a breakdown of current trade receivables from customers as at 30 June 2018, grouped by maturity, gross and net of the related bad debts provision.

Liquidity risk

Liquidity risk consists of an inability to raise, on adequate terms, the financial resources needed for the Group to operate. The two main factors that influence the liquidity of the Group are:

(i) the financial resources generated or absorbed by operating and investing activities;
(ii) the maturity of financial debt.

Liquidity risk is managed through careful management and monitoring of operating cash flows and recourse to a cash pooling system between the Group companies. The liquidity requirements of the Group are monitored by the Group treasury function, with the objective of ensuring that financial resources can be effectively found and an adequate investment/return of liquidity.

The management believes that the cash and the credit lines currently available, in addition to those that will be generated by operating and financing activities, will allow the Group to meet its requirements, deriving from investing activities, management of working capital and repayment of loans at their contractual maturity.

In Note 30 - Financial liabilities, excluding derivative financial instruments, the financial liabilities recognised in the Financial statements as at 30 June 2018 are summarised and classified according to contractual maturity.

10. CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES

The following is a reconciliation of classes of financial assets and liabilities as identified in the Statement of financial position of the Company and types of financial assets and liabilities identified on the basis of the requirements of IFRS 7:

In thousands of Euro	Assets/Liabilities designated at fair value and recognised in the income statement	Fair value Hedging instruments	Assets/Liabilities measured at amortised cost	Total
NON-CURRENT ASSETS	0	37	1,864	1,901
Other financial assets, excluding derivative financial instruments	0	0	850	850
Derivative financial instruments	0	37	0	37
Trade and other receivables	0	0	1,014	1,014
CURRENT ASSETS	1,682	0	128,991	130,674
Other financial assets, excluding derivative financial instruments	1,682	0	2,428	4,110
Trade and other receivables	0	0	83,211	83,211
Cash and cash equivalents	0	0	43,352	43,352
NON-CURRENT LIABILITIES	11,619	189	46,150	57,958
Financial liabilities, excluding derivative financial instruments	11,619	0	46,150	57,769
Derivative financial instruments	0	189	0	189
CURRENT LIABILITIES	45,200	3	93,080	138,283
Financial liabilities, excluding derivative financial instruments	45,200	0	40,646	85,845
Derivative financial instruments	0	3	0	3
Trade and other payables	0	0	52,434	52,434

11. FAIR VALUE HIERARCHY

The table below shows the fair value hierarchy of the assets and liabilities of the Group:

In thousands of Euro			Fair Value
	Level 1	Level 2	Level 3	Total
NON-CURRENT ASSETS	0	37	0	37
Derivative financial instruments		37		37
Floor options		37
CURRENT ASSETS	1,682	0	0	1,682
Other financial assets, excluding derivative financial instruments	1,682	0	0	1,682
Financial assets at fair value recognised in the income statement	1,682
NON-CURRENT LIABILITIES	0	189	11,619	11,809
Other financial assets, excluding derivative financial instruments	0	0	11,619	11,619
Liabilities for PUT options			11,619
Derivative financial instruments	0	189	0	189
Interest rate swap		189
CURRENT LIABILITIES	0	3	45,200	45,203
Other financial liabilities, excluding derivative financial instruments	0	0	45,200	45,200
Liabilities for PUT options			41,503
Contingent consideration			3,697
Derivative financial instruments	0	3	0	3
Cap options		3

12. BUSINESS COMBINATIONS

BUSINESS COMBINATIONS FOR WHICH ACCOUNTING RECOGNITION HAS NOT BEEN COMPLETED

Acquisition of Warrant Group Srl.

On 30 November 2017, the acquisition of 70% of Warrant Group Srl was completed. As at 30 June 2018, Warrant Group Srl controls the following companies: Warrant Innovation Lab Scarl (96.4%), BeWarrant Sprl, incorporated under Belgian law (100%), Warrant Service Srl (50%); it also has significant influence over Innovazione 2 Sagl, incorporated under Swiss law (30%).

The Warrant Group offers integrated advisory services to obtain subsidized finance to businesses that invest in research and development innovation activities. The maximum consideration for the acquisition of 70% of the capital of Warrant Group was set at € 33,880 thousand, of which € 25,700 thousand paid at the closing date, up to € 2,830 thousand based on the results achieved and with a net financial position, determined in the contract, equal to 0, and with € 5,350 thousand to be paid in five yearly instalments starting on 15 January 2019. For the remaining 30% held by the selling shareholders, Put & Call option rights are provided, exercisable in two tranches after the respective approval of the 2018 and 2019 Financial statements, at a price calculated on the basis of a multiple on the consolidated 2018 EBITDA of Warrant Group, taking into account its net financial position.

The Euro 25.7 million paid at the closing date was financed by making recourse to an already existing line of credit with Crédit Agricole Cariparma S.p.A. for Euro 10 million (Cariparma Line B Loan), as well as by using Euro 10 million from a new line of credit granted by Unione di Banche Italiane S.p.A (UBI Loan). The conditions of the two lines of credit both lay out a maturity at 30 June 2023 and an interest rate calculated as the sum of the 6M Euribor plus a spread of 160 basis points (for more details on loans obtained, refer to Note 30 - Financial liabilities, excluding derivative financial instruments).

On the payment deferment granted by the selling shareholders, the Group defined an implicit interest rate equal to 1.49% taking into consideration the rate established on the unsecured UBI Loan obtained by Tecnoinvestimenti S.p.A. for the loan and fees on the guarantee to back the deferment obtained. The discounted value was equal to € 5,106 thousand at the acquisition date.

The company was consolidated line-by-line as of 1 December 2017.

In the first six months of 2018, the Warrant group generated revenue of € 21,923 thousand and a profit of € 6,557 thousand.

The following table summarises the fair value at the acquisition date of the main components of the compensation paid:

Amounts in thousands of Euro
Cash and cash equivalents for 70%	25,700
Price deferment on 70%	5,106
Contingent consideration (Earn out) on 70%	2,759
Fair value of Put & Call options on 30%	23,745
Total compensation paid	57,310

The following is a summary of the book values recognised with reference to the assets acquired and liabilities undertaken at the acquisition date:

Amounts in thousands of Euro	Book values
Property, plant and equipment	406
Intangible assets	1,019
Equity investments at cost or fair value	43
Other non-current financial assets	29
Deferred tax assets	2,009
Inventories	1,043
Other current financial assets	14
Trade and other receivables	11,874
Cash and cash equivalents	7,663
Total Assets Acquired	24,099
Provisions	26
Employee benefits	1,858
Non-current financial liabilities	1,285
Deferred tax liabilities	169
Current financial liabilities	1,955
Trade and other payables	6,212
Deferred revenue and income	6,210
Current tax liabilities	1,762
Total Liabilities Undertaken	19,477
Net Assets Acquired	4,623

Goodwill arising from the acquisition has been provisionally recognised as shown in the following table:

Amounts in thousands of Euro
Total compensation paid	57,310
Net Assets Acquired	4,623
Net Assets Acquired of minority shareholders	-299
Goodwill recognised on a provisional basis	52,987

Acquisition of Eurofidi business unit

On 31 October 2017, Ribes S.p.A. (now Innolva S.p.A.) entered into the contract for the acquisition of a business unit of the company Eurofidi Società Consortile di garanzia collettiva Fidi S.C. a r.l. - in liquidation. The contract established a purchase price of € 405 thousand, € 122 thousand of which disbursed in 2017, € 203 thousand to be paid in the course of 2018 and € 81 thousand to be disbursed in 2019. The Parties also agreed that, in addition to the purchase price, the transferee company will need to pay Eurofidi an additional price of up to € 150 thousand if the turnover recorded by the transferee in 2018, in relation to the transferred business unit, is no lower than € 1,100 thousand.

The following table summarises the fair value at the acquisition date of the main components of the compensation paid:

Amounts in thousands of Euro
Cash and cash equivalents	122
Price deferment	284
Contingent consideration (Earn out)	135
Total compensation paid	540

Goodwill arising from the acquisition has been provisionally recognised as shown in the following table:

Amounts in thousands of Euro
Total compensation paid	540
Net Assets Acquired (Software)	10
Goodwill recognised on a provisional basis	530

Acquisition of AC Camerfirma S.A.

On 3 May 2018, the Tecnoinvestimenti Group completed, through InfoCert S.p.A, acquisition of control (51%) of Spanish company AC Camerfirma S.A. (also "Camerfirma"). Camerfirma controls Peruvian company Camerfirma Peru S.A.C. (99.8%).

The Camerfirma group has a solid presence in the Spanish market, as well as a number of commercial initiatives underway in South America via the aforementioned Camerfirma Peru. Camerfirma was established in 2000 by the Spanish Chambers of Commerce, which today represent the minority shareholders. The customer base of Camerfirma includes private companies and the Spanish public administration. It was established as a provider of certification services based on Spanish Law no. 59/2003 of 19 December, with regard to electronic signatures and identity certificates, which allows companies and their employees to electronically sign documents having full technical security and legal validity.

InfoCert acquired 51% of Camerfirma through the subscription of a share capital increase of € 3,122 thousand. InfoCert financed the acquisition through internal resources.

The Camerfirma group was consolidated line-by-line as of 1 May 2018.

The Camerfirma group contributed to the Tecnoinvestimenti Group's revenues for the first half of the year for € 925 thousand and to profit for € 229 thousand.

The following table summarises the fair value at the acquisition date of the main components of the compensation paid:

Amounts in thousands of Euro
Cash and cash equivalents for 51%	3,122
Total compensation paid	3,122

The following is a summary of the book values recognised with reference to the assets acquired and liabilities assumed at the acquisition date:

Amounts in thousands of Euro	Book values
Property, plant and equipment	138
Intangible assets	447
Equity investments at cost or fair value	2
Other non-current financial assets	50
Current and deferred tax assets	480
Inventories	21
Other current financial assets	175
Trade receivables, other receivables and contract assets	2,568
Cash and cash equivalents	3,409
Total assets acquired	7,289
Trade and other payables	1,106
Contract liabilities	25
Deferred income	31
Current tax liabilities	4
Total liabilities assumed	1,166
Net assets acquired	6,123

As illustrated below, no goodwill arose from the provisional accounting of the acquisition:

Amounts in thousands of Euro

Total compensation paid	3,122
Net assets acquired	6,123
Net assets acquired of minority shareholders	-3,000
Goodwill recognised on a provisional basis	0

The net cash flow deriving from the consolidation of the Camerfirma group is shown below:

Net cash flow deriving from consolidation	286
Cash and cash equivalents acquired	3,409
Consideration paid	-3,122
In thousands of Euro

13. DIVESTITURES

On 22 May 2018, the Tecnoinvestimenti Group completed, through Innolva S.p.A., the sale of control (70%) of Swiss company Creditreform Assicom Ticino S.A.

On 1 March 2018, the Board of Directors of Innolva S.p.A. resolved to dispose of the stake held in Swiss company Creditreform Assicom Ticino SA since, after the changes made to the corporate structure of Assicom Ribes S.p.A. (now Innolva S.p.A.) in 2017, this investment was no longer considered strategic.

The transaction involved the disposal as at closing date of 70% of the share capital for a total of CHF 370 thousand over 4 years, expiring in 2022, with an early payment option. A call option will be provided on the remaining 30% at a pre-established price of CHF 150 thousand, to be exercised by the purchaser between the date of full payment of the instalment and 2023.

Creditreform Assicom Ticino S.A. was consolidated on a line-by-line basis until 31 May 2018. The company contributed to the Tecnoinvestimenti Group's revenues for the first half of the year for € 293 thousand and to loss for € 34 thousand. Starting from 1 June 2018, the company was accounted using the equity method.

The following table summarises the fair value at the sale date of the main components of the compensation paid:

In thousands of Euro

Fair value of consideration on the sale 70%	276
Fair value of the 30% stake maintained	128
Total	404

Book value Net Assets Creditreform	191
Goodwill allocated to the CGU Creditreform	222
Conversion reserve recognised in the income statement	-5
Total Net assets sold	409

Capital losses from the loss of control	5

The net cash flow deriving from deconsolidation of Camerfirma Assicom Ticino S.A. is shown below:

In thousands of Euro
Consideration received	30
Cash and cash equivalents sold	-53
Net cash flow deriving from deconsolidation	-23

Information on the Statement of financial position

It should be noted that the tables of changes in equity items show the effect on the consolidated data of the changes in the scope of consolidation (of the values estimated provisionally for the assets and liabilities acquired as part of the acquisition of Camerfirma, and the sale of control of Creditreform Assicom Ticino S.A.), as illustrated in Note 12 - Business Combinations and Note 13 - Divestitures.

14. PROPERTY, PLANT AND EQUIPMENT

Provided below are the changes in property, plant and equipment investments:

Amounts in thousands of Euro	31/12/2017	Investments	Divestments /Disposals	Depreciation	Reclassifications	Change in Scope of Acquisitions	Change in Scope of Disposals	30/6/2018
Land
Cost	161	0	-13	0	0	0	0	148
Net value	161	0	-13	0	0	0	0	148
Leased land
Cost	303	0	0	0	0	0	0	303
Net value	303	0	0	0	0	0	0	303
Buildings
Cost	1,499	0	-56	0	0	0	0	1,443
Accumulated Depreciation	-447	0	13	-22	0	0	0	-456
Net value	1,052	0	-43	-22	0	0	0	987
Leased buildings
Cost	2,953	0	0	0	0	0	0	2,953
Accumulated Depreciation	-1,170	0	0	-44	0	0	0	-1,214
Net value	1,783	0	0	-44	0	0	0	1,739
Plants and machinery
Cost	6,914	68	-22	0	0	809	-8	7,761
Accumulated Depreciation	-5,568	0	22	-470	9	-694	4	-6,697
Net value	1,346	68	0	-470	9	115	-4	1,064
Industrial and commercial equipment
Cost	189	18	0	0	0	0	0	207
Accumulated Depreciation	-106	0	0	-12	0	0	0	-118
Net value	83	18	0	-12	0	0	0	89
Leasehold improvements
Cost	1,812	11	-60	0	0	0	-7	1,757
Accumulated Depreciation	-1,137	0	60	-95	0	0	2	-1,170
Net value	676	11	0	-95	0	0	-5	586
Assets in progress and advances
Cost	0	28	0	0	0	0		28
Net value	0	28	0	0	0	0		28
Other assets
Cost	15,372	1,296	-87	0	0	87	-25	16,642
Accumulated Depreciation	-12,489	0	51	-1,129	0	-63	9	-13,622
Net value	2,883	1,296	-36	-1,129	0	23	-17	3,021
Other leased assets
Cost	65	86	-65	0	0	0	0	86
Accumulated Depreciation	-65	0	65	-3	0	0	0	-3
Net value	0	86	0	-3	0	0	0	83
Property, plant and equipment	8,287	1,507	-93	-1,775	9	138	-26	8,047

15. INTANGIBLE ASSETS AND GOODWILL

This item includes intangible assets with indefinite (goodwill) or definite (intangible assets) useful life.

Amounts in thousands of Euro	31/12/2017	Investments	Divestments/ Disposals	Amortisation	Reclassifications	Change in Scope of Acquisitions	Change in Scope of Disposals	Delta Exchange rates	30/6/2018
Goodwill
Original cost	213,298						-222		213,076
Net value	213,298	0	0	0	0	0	-222	0	213,076
Other intangible assets with indefinite useful life
Original cost	376	29							405
Bad debts provision	0								0
Net value	376	29	0	0	0	0	0	0	405
Industrial patent and intellectual property rights
Original cost	46,373	1,064	-9		289	1,425			49,141
Accumulated amortisation	-39,009		9	-1,749	-9	-1,118			-41,875
Net value	7,364	1,064	0	-1,749	280	307	0	0	7,266
Concessions, licences, trademarks and similar rights
Original cost	276	12	-44			30			274
Accumulated amortisation	-181		44	-6		-30			-173
Net value	95	12	0	-6	0	0	0	0	101
Other intangible assets from consolidation
Original cost	41,565								41,565
Accumulated amortisation	-12,612			-1,984					-14,597
Net value	28,952	0	0	-1,984	0	0	0	0	26,968
Assets in progress and advances
Original cost	1,701	522			-1,530	140			833
Net value	1,701	522	0	0	-1,530	140	0	0	833
Databases
Original cost	2,107	4,107			1,240				7,454
Accumulated amortisation	-1,905			-663					-2,568
Net value	202	4,107	0	-663	1,240	0	0	0	4,886
Other
Original cost	3,397		-2,070		1		-70		1,258
Accumulated amortisation	-2,693		2,066	-114	-1		50	-1	-693
Net value	704	0	-4	-114	0	0	-20	-1	565
Intangible assets with definite and indefinite useful life	252,693	5,734	-4	-4,517	-9	447	-243	-1	254,102

Goodwill

As at 30 June 2018, the item amounts to € 213,076 thousand and can be broken down as follows among CGU/Operating segments:

In thousands of Euro				Chang
CGU	Operating	30/6/2018	31/12/2017	e
segments
Goodwill Innolva	(Credit Information & Management)	83,630	83,630	0
Goodwill RE Valuta	(Credit Information & Management)	4,578	4,578	0
Goodwill Creditreform	(Credit Information & Management)	0	222	-222
Goodwill Warrant	(Innovation & Marketing Services)	52,987	52,987	0
Goodwill Co.Mark	(Innovation & Marketing Services)	46,663	46,663	0
Goodwill Visura	(Digital Trust)	25,191	25,191	0
Goodwill Ecomind	(Digital Trust)	27	27	0
	Goodwill	213,076	213,298	-222

Goodwill is periodically subject to testing to determine the existence of any impairment. For the purpose of preparing these Condensed Interim Consolidated Financial Statements, based on the information available and in view of the absence of "trigger events", the decision was taken not to carry out the impairment tests, which therefore will be performed at the time of the preparation of the Consolidated Financial Statements at year-end.

Elimination of the goodwill allocated to the Creditreform CGU is due to the 70% disposal and to the consequent loss of control of the CGU identified as the company Creditreform Assicom Ticino. For details, please refer to Note 13 - Divestitures.

Other intangible assets with indefinite useful life

The item Other intangible assets with indefinite useful life consists of the value of the press review database called AZ Press attributable to Innolva S.p.A. Considering the specific nature of this database, it is not possible to define criteria to link the value of individual data with the historical value and determine a useful life. Each verification of the value of the database as a whole, as well as that of the ability to express useful life, can therefore only be by means of periodic analysis of the recoverability of the investment. For the purpose of preparing these Condensed Interim Consolidated Financial Statements, based on the information available and in view of the absence of "trigger events", it was decided not to proceed with the preparation of impairment tests, which will therefore be performed at the time of the drafting of the Consolidated Financial Statements at year-end.

Intangible assets with definite useful life

The item Industrial patent and intellectual property rights includes both the expenses for maintenance and development of the platform related to the software application for the management of Credit Information & Management databases and the costs for the purchase of software licences used for the supply of Digital Trust services.

The Databases increased by € 4,107 thousand due to investments made during the period, in addition to € 1,240 thousand for beginning of production of investments made at the end of 2017. Investment in the business unit Credit Information & Management, specifically in the company Innolva S.p.A., envisaged establishment of the initial structure and constant updating of the positions in the proprietary archives through steady annual investments. The underlying reasons for the investment are: the possibility of developing an offering aligned with market demand, which calls for the launch of innovative products and proposition of associated additional services; independence in the procurement phases from the main competitors and the possibility of guaranteeing the highest quality standards with respect to the depth of the data underlying the analyses and the accuracy guaranteed by their continuous updating.

Other intangible assets from consolidation consist of the intangible assets recognised during the fair value measurement of the assets acquired as part of the following business combinations:

In thousands of Euro	30/6/2018	31/12/2017	Change
Customer list & backlog order Assicom	10,889	11,410	-521
Customer list Ribes	5,243	5,424	-181
Customer list Infonet	4,475	4,654	-179
Customer list Visura group	4,327	5,048	-721
Customer list Co.Mark	1,645	1,974	-329
Customer list Datafin	389	442	-53
Other intangible assets from consolidation	26,968	28,952	-1,984

The decrease recognised during the period can be attributed to amortisation.

16. EQUITY INVESTMENTS

Equity-accounted investments

During the period, there was an increase in the Creditreform Assicom Ticino S.A. investment, following full deconsolidation until 31 May 2018, due to the sale of control of said company, as previously commented on in Note 13 - Divestitures. Given the 30% stake, the company was consolidated through the equity method starting from 1 June 2018.

As at 30 June 2018, the item in question includes the following equity investments in associated companies:

eTuitus S.r.l., a university spin-off established in October 2014, of which InfoCert S.p.A. holds 24% of the share capital.
Innovazione2 Sagl, a Swiss company in which Warrant Group S.r.l. holds a 30% stake.
Creditreform Assicom Ticino S.A., a Swiss company in which Innolva S.p.A. holds a 30% stake.

The table below provides the valuation details of companies consolidated using the equity method.

In thousands of Euro	% ownership	31/12/2017	Increases/Decreases in the income statement	Changes in scope of consolidation	Exchange rate Delta	30/6/2018	% ownership
eTuitus S.r.l.	24%	14				14	24%
Innovazione 2 Sagl	30%	11	31		0	42	30%
Creditreform Assicom Ticino S.A.	0%	0	0	128	-1	127	30%
Shareholdings in Associated companies		25	30	128	0	183

Other investments

The item in question includes investments in other companies for € 29 thousand (€ 49 thousand as at 31 December 2017) and refers to minority interests in companies/consortia. The decrease during the period is due to the sale of the entire investment (16.33%) in Gestio S.r.l. by Warrant Group Srl for € 50 thousand; this sale generated a capital gain of € 29 thousand, recognised under Financial income.

17. OTHER NON-CURRENT FINANCIAL ASSETS, EXCLUDING DERIVATIVE FINANCIAL INSTRUMENTS

Amounts in thousands of Euro	30/6/2018	31/12/2017	Change
Other financial assets, excluding derivative financial instruments	850	543	306

The increase in the item is mainly due to recognition of the receivable, for the amount due over 12 months of € 163 thousand, relative to the price deferment granted to the purchasers of 70% of Creditreform (better described in Note 13 - Divestitures). The remaining amount mainly includes receivables for security deposits.

18. DEFERRED TAX ASSETS/LIABILITIES

Deferred tax assets/liabilities, due to temporary deductible and taxable differences generated also as a result of consolidation adjustments, can be broken down as follows:

Amounts in thousands of Euro	31/12/2017	Allocations (Releases) Income statement	Allocations (Releases) Shareholders' equity	Allocations (Releases) Comprehensive inc. statement	Change in Scope of Acquisitions	30/6/2018
Deferred tax assets	5,556	-1,448	3,987	-1	478	8,573
Deferred tax liabilities	-9,345	739	-853	0	0	-9,459
Net balance	-3,789	-708	3,134	-1	478	-886

The increase in Deferred tax assets first of all refers to application as at 1 January 2018 of IFRS 15, which required the allocation of € 3,987 thousand, with offsetting entry in Shareholders' equity, partly offset in First Half 2018 with entry in the income statement. A net allocation to the income statement for tax losses was recognised during the period as well (given the expected recoverability for the new tax consolidation option by the end of the year), equal to € 1,034 thousand. Full consolidation of Camerfirma resulted in recognition of Deferred tax assets for € 478 thousand for tax losses to be recovered.

Deferred tax liabilities refer primarily to the fair value of assets emerging on the allocation of the excess cost paid in business combinations (€ 7,636 thousand), issued during the period for € 565 thousand. The allocation of € 853 thousand was recorded during the half-year, with offsetting entry under Shareholders' equity, due to adoption from 1 January 2018 of IFRS 15 (€ 689 thousand) and IFRS 9 (€ 164 thousand).

19. CONTRACT COST ASSETS

The following are recognised under Contract cost assets, pursuant to IFRS 15 "Revenue from contracts with customers":

incremental costs for obtainment of the sales contract;
sales contract fulfilment costs.

Amounts in thousands of Euro	Adoption IFRS 15 1/1/2018	30/6/2018
Contract obtainment cost assets	2,559	2,768
Contract fulfilment cost assets	1,456	1,645

Non-current contract cost assets	4,015	4,413
Contract fulfilment cost assets	1,029	1,461
Current contract cost assets	1,029	1,461
Contract cost assets	5,044	5,874

The incremental costs to obtain a sales contract are recognised under Non-current assets; the Group recognises as expenses the incremental costs to obtain the contract when they are sustained, in the case in which the amortisation period of the assets that the Group would have otherwise recognised does not exceed one year.

Contract obtainment cost assets, equal to € 2,768 thousand as at 30 June 2018, include commissions paid to agents to obtain contracts predominantly in the Credit Information & Management and Innovation & Marketing Services sectors, specifically by the Co.Mark group. These costs are amortised on a straight-line basis and in line with the average duration of the contracts to which they refer. The periodic release of the amount relating to First Half 2018 amounts to € 3,683 thousand, and no impairment losses on the capitalised costs were recorded.

Contract fulfilment costs are recognised under Current assets if it is believed that the transfer to the customer of the goods or services to which the asset refers will take place within twelve months. Non-current assets include costs to fulfil the sales contract if the transfer to the customer of the goods and services to which the asset refers is carried out after twelve months.

Non-current contract fulfilment cost assets include costs sustained in Digital Trust to implement "ad hoc" customer platforms to provide a series of services within a time frame of over twelve months. Current contract fulfilment cost assets include costs sustained to provide consulting services in Innovation & Marketing Services, specifically by the Warrant Group, which do not generate inventories, with respect to which the relative income has still not been recognised (recognised under Inventories until 31 December 2017). The periodic release of Contract fulfilment cost assets for the amount relating to First Half 2018 equaled € 961 thousand, and no impairment losses on the capitalised costs were recorded.

20. CONTRACT ASSETS

Contract assets of € 5,365 thousand as at 30 June 2018 predominantly comprise the Group's right to receive consideration for work completed but not yet invoiced as at the end of the period. These assets are reclassified under Trade receivables when the right becomes unconditional.

Adoption of IFRS 15 as at 1 January 2018 involved a reclassification of € 4,710 thousand in Contract assets, recognised under Trade and other receivables as at 31 December 2017.

21. TRADE AND OTHER RECEIVABLES

The item Trade and other receivables totalled € 84,226 thousand (€ 80,928 thousand as at 31 December 2017) and can be detailed as follows:

in thousands of Euro	30/6/2018	31/12/2017	Change
Receivables from customers	336	258	78
Deferred assets	606	313	293
Receivables from others	72	72	0
Trade receivables and other non-current receivables	1,014	643	371

Receivables from customers	75,470	70,115	5,355
Receivables from associated companies	1	0	1
Receivables from others	2,830	1,779	1,051
VAT credit	44	1,619	-1,575
IRPEF credit	6	7	-1
Other tax receivables	738	577	161
Deferred assets	4,124	6,046	-1,922
Accrued assets	n.a.	3	-3
Contract work in progress	n.a.	140	-140
Trade and other current receivables	83,211	80,285	2,926
of which vs Related parties	473	563	-90
Trade and other receivables	84,226	80,928	3,297

Receivables from customers are shown net of the related bad debts provision.

The increase in current receivables from customers was impacted by the balances generated by the consolidation of the Camerfirma group which, at 30 June 2018, amounted to € 2,656 thousand net of the associated bad debt provision. Also note that due to adoption of IFRS 15 as of 1 January 2018, as anticipated in the previous note, the amount of € 4,710 thousand in Contract assets was reclassified into Receivables from customers, Accrued assets and Contract work in progress as at 31 December 2017.

The following table provides a breakdown of current trade receivables from customers as at 30 June 2018, grouped by maturity brackets, gross and net of the related bad debts provision:

Amounts in thousands of Euro	30/6/2018	due	past due within 90 days	past due between 91 and 180 days	past due between 181 days and 1 year	past due beyond 1 year
Trade receivables from current customers	79,624	47,706	15,326	5,828	4,815	5,949
Bad debts provision	4,154	141	100	204	638	3,071
% Bad debts provision	5.2%	0.3%	0.7%	3.5%	13.2%	51.6%
Net value	75,470	47,565	15,226	5,623	4,177	2,879

The following table shows changes in the period in the Bad debts provision:

Amounts in thousands of Euro
Bad debts provision as at 31 December 2017	3,614
Allocation 2018	900
Uses 2018	-489
Releases 2018	-9
Change in scope of consolidation (acquisitions)	165
Change in scope of consolidation (disposals)	-26
Bad debts provision as at 30 June 2018	4,154

Deferred assetsrepresent charges accrued after the cash flows and/or documentation have been exchanged; they do not depend on the time of payment of the corresponding charges, pertain to two or more fiscal years and proportionally allocated based on time. This item, in addition to the cost of insurance and rent, mainly relates to hardware and software maintenance services purchased by Infocert S.p.A., as well as the commissions due to agents and the unused portion of prepaid supply contracts of Innolva S.p.A. The decrease in the item is due to recognition under Contract obtainment cost assets (Note 19) of commissions to agents for obtaining contracts, mainly in the sectors of Credit Information & Management and Innovation & Marketing Services, previously recognised under deferred assets for the non-accrued portion.

A significant contribution to the increase in Receivables from others is payment of the signing deposit by Innolva S.p.A. of € 900 thousand, upon signing for acquisition of the companies Comas Srl and Webber Srl; the transaction closed on 5 July 2018. The balance of receivables from others as at 30 June 2018 includes the receivable for contributions on research and development projects presented to the Lazio Region regarding EU funds still to be received by InfoCert S.p.A. for € 724 thousand; the remaining balance is due primarily to advances to suppliers and agents.

22. INVENTORIES

Inventories as at 30 June 2018 amounted to € 963 thousand (€ 2,072 thousand as at 31 December 2017) and can be broken down as follows:

in thousands of Euro	30/6/2018	31/12/2017	Change
Raw and ancillary materials and consumables	713	860	-148
Finished products and goods	251	183	68
Pending costs	n.a.	1,029	-1,029
Inventories	963	2,072	-1,109

Due to adoption on 1 January 2018 of IFRS 15, the costs sustained for the provision of consulting services, with respect to which the relative revenue has not yet been measured, recognised under Pending costs as at 31 December 2017 and equal to € 1,029 thousand, were reclassified under Contract cost assets (as indicated in Note 19 - Contract cost assets).

Inventories of raw materials are mainly attributable to the Digital Trust sector and consist principally of chips for business keys, smart cards, CNS and other electronic components available for sale. Inventories of raw materials are shown net of the related bad debts provision equal to Euro 106 thousand; said provision did not change during the period. Inventories of finished products and goods are also attributable to the Digital Trust sector and relate to inventories of ature readers, smart cards and business keys.

23. OTHER CURRENT FINANCIAL ASSETS, EXCLUDING DERIVATIVE FINANCIAL INSTRUMENTS

Other current financial assets amounted to € 4,110 thousand at 30 June 2018 (€ 4,311 thousand at 31 December 2017).

Partial collection of a capitalisation insurance contract by the Visura group for € 400 thousand is recognised during the period; the existing receivable as at 30 June 2018 amounted to € 1,920 thousand (€ 2,306 thousand at 31 December 2017).

The remaining balance as at 30 June 2018 includes € 1,682 thousand related to specific financial assets classified as "Financial assets at fair value recognised in profit or loss".

24. CURRENT TAX ASSETS AND LIABILITIES

As at 30 June 2018, the Group showed an overall net debt position for current taxes equal to € 9,589 thousand (net debt position of € 4,135 thousand as at 31 December 2017) as detailed below:

in thousands of Euro	30/6/2018	31/12/2017	Change
Current tax assets	1,490	1,990	-500
of which vs Related parties	1,133	1,167	-34
Current tax liabilities	11,078	6,125	4,953
of which vs Related parties	1,998	2,395	-397
Net current tax assets	-9,589	-4,135	-5,453

Note that the deadline has expired for tax consolidation for the period 2015-2017 by the Majority Shareholder Tecno Holding S.p.A., in which the Parent Company Tecnoinvestimenti S.p.A. and InfoCert S.p.A. participated. Related party transactions at 30 June 2018 relate to assets and liabilities for current IRES taxes, of the Parent Company and InfoCert S.p.A. respectively, vis-a-vis the Majority Shareholder Tecno Holding S.p.A. for the 2017 taxation period.

25. DERIVATIVE FINANCIAL INSTRUMENTS

The financial assets and liabilities for derivative instruments may be broken down as follows:

In thousands of Euro	30/6/2018	31/12/2017	Change
Non-current financial assets for hedging derivatives	37	40	-3
Non-current financial liabilities for hedging derivatives	189	202	-12
Current financial liabilities for hedging derivatives	3	0	3
Liabilities for net hedging derivative financial instruments	156	162	-6

Non-current financial liabilities for hedging derivatives relate primarily to Interest Rate Swap (IRS) agreements entered into by the Group to cover the risk of variability in cash flows due to fluctuating interest rates on a portion of the Cariparma line A1 loan and on a portion of the Cariparma line A2 loan (referred to in Note 30 - Financial liabilities, excluding derivative financial instruments). Below is a table with the details of the IRSs outstanding as at 30 June 2018:

in thousands of Euro

	Company	Bank	Notiona l	Maturity	Rate received	Rate paid	Fair value as at 30/6/2018	Fair value as at 31/12/2017
IRS	Tecnoinvestimenti S.p.A.	Crédit Agricole Cariparma	3,157	31/12/2020	Euribor 6 months	0.576%	-43	-49
IRS	Tecnoinvestimenti S.p.A.	Banca Popolare dell'Emilia Romagna	2,882	31/12/2020	Euribor 6 months	0.576%	-39	-45
IRS	Tecnoinvestimenti S.p.A.	Iccrea Banca Impresa	824	31/12/2020	Euribor 6 months	0.576%	-11	-13
IRS	Tecnoinvestimenti S.p.A.	Crédit Agricole Cariparma	4,566	30/06/2023	Euribor 6 months	0.600%	-48	-38
IRS	Innolva S.p.A.	Crédit Agricole Cariparma	1,167	31/12/2020	Euribor 6 months	0.595%	-17	-19
IRS	Innolva S.p.A.	Banca Popolare dell'Emilia Romagna	1,066	31/12/2020	Euribor 6 months	0.595%	-15	-17
IRS	Innolva S.p.A.	Iccrea Banca Impresa	305	31/12/2020	Euribor 6 months	0.595%	-4	-5
IRS	Innolva S.p.A.	Crédit Agricole Cariparma	1,034	30/06/2023	Euribor 6 months	0.640%	-12	-9
instruments"	Total Interest Rate Swap "hedging		15,000				-189	-195

Provided below is a table with the details of the Interest Rate Floors outstanding as at 30 June 2018, stipulated during 2017 following renegotiation of the aforementioned loans, in order to make hedging of the IRS with maturity 31/12/2020 fully effective at the renegotiated conditions.

	in thousands of Euro
	Company	Counterparty bank	Notional	Maturity	Hedged rate	Strike	Fair value as at 30/6/2018	Fair value as at 31/12/2017
Floor	Tecnoinvestimenti S.p.A.	Crédit Agricole Cariparma	6,863	31/12/2020	Euribor 6 months	0.001%	27	29
Floor	Innolva S.p.A.	Crédit Agricole Cariparma	2,538	31/12/2020	Euribor 6 months	0.001%	10	11
	Total Floor Option "hedging		9,400				37	40

instruments"

The € 3 thousand in Current financial liabilities for hedging derivatives are to be attributed to an Interest Rate Cap purchased by Sixtema S.p.A. relating to a hedging strategy on a finance lease.

in thousands of Euro Company Counterparty bank Notional Maturity Hedged rate Strike Fair value as at 30/6/2018 Fair value as at 31/12/2017 Cap Sixtema S.p.A. Credem 555 01/04/2019 Euribor 3 months 2.000% -3 -7 Total Cap Option "hedging instruments" 555 -3 -7

Derivative financial instruments fall within Level 2 of the fair value hierarchy.

26. CASH AND CASH EQUIVALENTS

Cash and cash equivalents amounted to € 43,352 thousand as at 30 June 2018 (€ 36,987 thousand as at 31 December 2017) and the breakdown is as follows:

Amounts in thousands of Euro	30/6/2018	31/12/2017	Change
Bank and postal deposits	43,282	36,929	6,354
Cheques	36	34	2
Cash and cash equivalents	34	24	10
Cash and cash equivalents	43,352	36,987	6,366

The balance is mainly represented by the cash and cash equivalents held in bank accounts at leading national banks.

27. SHAREHOLDERS' EQUITY

Consolidated Shareholders' equity at 30 June 2018 amounted to € 138,847 thousand (€ 143,317 thousand at 31 December 2017) and can be analysed as follows:

Amounts in thousands of Euro	30/6/2018	31/12/2017	Change
Share capital	46,573	46,573	0
Legal reserve	2,031	1,433	598
Share premium reserve	53,917	53,917	0
Reserve from valuation of hedging derivatives	-149	-154	5
Defined-benefits plan reserve	-394	-394	0
Other reserves	18,777	21,173	-2,396
Profit (loss) for the Group	14,206	20,233	-6,027
Total Group equity	134,961	142,780	-7,820
Capital and reserves attributable to minority interests	3,130	459	2,670
Profit (loss) attributable to minority interests	397	78	319
Total minority interests	3,527	537	2,990
Total Shareholders' equity	138,487	143,317	-4,830

On 13 June 2018, Tecnoinvestimenti S.p.A. communicated that, based on the results of the annual accounts of the companies forming part of the Group, the condition pursuant to art. 3 of the Regulations on the "Tecnoinvestimenti 2016-2019 Warrant" became applicable for the year ended 31 December 2017. Therefore, Cedacri S.p.A. - shareholder that, based on the information publicly available, holds a 1.352% stake in Tecnoinvestimenti S.p.A. - will be entitled, up until 30 September 2018, to exercise the second tranche of warrants held up to a maximum of 317,000, corresponding to 317,000 new ordinary shares of Tecnoinvestimenti S.p.A. (equal to 0.681% of the latter's current share capital), at a subscription price of € 3.40 per share, determined in accordance with the relevant Regulations.

The Reserve from valuation of hedging derivatives refers to the fair value valuation of hedging derivatives (referred to in Note 25 - Derivative financial instruments).

The defined-benefits plan reserve refers to the actuarial component of the Employee Severance Indemnity according to the requirements of IAS 19.

28. PROVISIONS

Provisions, amounting to € 1,614 thousand at 30 June 2018 (€ 1,940 thousand at 31 December 2017) are detailed as follows:

In thousands of Euro	31/12/2017	Provisions	Uses	Releases	30/6/2018
Provision for pensions	802	179	-14	-65	902
Other non-current provisions	796	133	-100	-247	582
Non-current provisions	1,598	312	-114	-312	1,484
Other current provisions	342	4	-217	0	130
Current provisions	342	4	-217	0	130
Provisions	1,940	316	-331	-312	1,614

The provision for pensions relates to the provision of the supplementary indemnity of customers due, in the cases provided by law, to agents based on the actuarial valuation of the liability quantifying future payments, through the projection of indemnities accrued on the valuation date by agents until the estimated time of interruption of the contract. Provisions net of releases are recognised by nature in Service costs.

The items Other current and non-current provisions include disputes with current employees or employees who have stopped working as at 30 June 2018. Provisions for disputes with employees, net of provisions, are recognised by nature in Personnel costs for an overall effect during the period of € 46 thousand.

29. EMPLOYEE BENEFITS

Employee benefits, amounting to € 11,986 thousand at 30 June 2018 (€ 11,337 thousand at 31 December 2017) are detailed as follows:

Amounts in thousands of Euro	30/6/2018	31/12/2017	Change
Employee severance indemnity	10,640	10,322	318
Other non-current employee benefits	959	655	304
Non-current employee benefits	11,599	10,977	622
Other current employee benefits	388	360	28
Current employee benefits	388	360	28
Employee benefits	11,986	11,337	650

The item Other employee benefits includes the accrued liability associated with the Virtual Stock Option Plan approved by the Board of Directors of the Parent Company on 14 November 2016 for senior managers with strategic responsibilities, aimed at the payment of deferred sums corresponding to the growth in the value of the Company's shares. The current liability, relating to the first tranche of Stock Options that may be exercised starting from 31 January 2018, is equal to € 388 thousand, while the non-current liability, relating to the second tranche of Stock Options that may be exercised starting from 31 July 2019, amounts to € 486 thousand.

The item Other non-current employee benefits includes the provision equal to € 472 thousand relating to a long-term incentive program for the management of InfoCert S.p.A., the payment of which is expected in 2020.

30. FINANCIAL LIABILITIES, EXCLUDING FINANCIAL DERIVATIVE INSTRUMENTS

This item includes financial liabilities assumed by the Group for a variety of reasons, with the exception of those deriving from the underwriting of financial derivative instruments, and is broken down as follows:

Amounts in thousands of Euro	30/6/2018	31/12/2017	Change
Current portion of bank loans	7,591	7,360	230
Non-current portion of bank loans	38,399	43,058	-4,658
Other current bank payables	805	1,292	-486
Liabilities for the purchase of non-controlling interests, current	41,503	5,752	35,750
Liabilities for the purchase of non-controlling interests, non-current	11,619	44,820	-33,200
Liabilities for current contingent consideration	3,697	3,138	559
Liabilities for non-current contingent consideration	0	876	-876
Current price deferment liabilities	2,531	1,689	842
Non-current price deferment liabilities	7,004	9,394	-2,390
Liabilities to Majority shareholder for current loans	25,248	252	24,996
Liabilities to Majority shareholder for non-current loans	0	25,000	-25,000
Liabilities for the purchase of current leased assets	142	134	8
Liabilities for the purchase of non-current leased assets	744	785	-42
Current payables to other lenders	4,328	2,106	2,223
Non-current payables to other lenders	3	3	-1
Current financial liabilities	85,845	21,723	64,122
of which vs Related parties	25,248	252	24,996
Non-current financial liabilities	57,769	123,935	-66,166
of which vs Related parties	0	25,000	-25,000
Total	143,614	145,658	-2,044

Non-current financial liabilities expected to mature in more than 5 years from the date of the financial statements equal € 392 thousand and relate to finance leases. The following is a summary of the financial liabilities recognised in the Financial statements as at 30 June 2018, classified according to the contractual maturity:

Amounts in Euro	within one year	between 1 and 2 years	between 2 and 3 years	between 3 and 4 years	between 4 and 5 years	more than 5 years	Book value as at 30/6/2018
Bank loans	7,591	9,568	9,609	9,564	9,659	0	45,990
Other current bank payables	805						805
Liabilities for the purchase of minority interests	41,503	11,619					53,122
Liabilities for contingent consideration	3,697						3,697
Price deferment liabilities	2,531	2,489	2,423	1,038	1,054		9,535
Liabilities to Majority Shareholder for loans	25,248	0					25,248
Liabilities for the purchase of leased assets	142	148	132	37	35	392	886
Payables to other lenders	4,328	3					4,331
Total financial liabilities	85,845	23,827	12,163	10,639	10,748	392	143,614

Bank loans

Details of the Bank loans in place at 30 June 2018 are provided below, with evidence of the current and noncurrent portions. The current portion includes any accrued interest.

Bank loans	Counterparty	Rate	Expiry date	Current portion	Non-current portion	Residual value as at 30 June 2018
In thousands of Euro
Loan line of credit A1	Cariparma S.p.A.	Euribor 6 months + spread 1.30%	30/6/2023	3,477	13,166	16,642
Loan line of credit A2	Cariparma S.p.A.	Euribor 6 months + spread 1.30%	30/6/2023	1,084	4,098	5,182
Loan line of credit A3	Cariparma S.p.A.	Euribor 6 months + spread 1.60%	30/6/2023	450	1,721	2,172
Loan line of credit B	Cariparma S.p.A.	Euribor 6 months + spread 1.60%	30/6/2023	0	9,872	9,872
UBI loan	UBI Banca S.p.A.	Euribor 6 months + spread 1.60%	30/6/2023	1,111	8,787	9,898
MPS loan	MPS S.p.A.	0.81% p.a. / Euribor 6 months + 0.85% spread	31/03/2019	375	0	375
Warrant Group loans				1,077	729	1,806
Other minor loans				17	27	44
				7,591	38,399	45,990

The Cariparma line A1, Cariparma line A2 and Cariparma line A3 loans were taken out on 27 April 2017 in order to renegotiate the loan obtained on 16 December 2014 in the amount of Euro 36.5 million entered into with a pool of banks, of which Crédit Agricole Cariparma was lead bank. The main terms of the contract are as follows: maturity on 30 June 2023 and repayment of semi-annual instalments at 6-month Euribor plus a margin of 130 bps. The applicable margin shall be determined based on the Debt Cover Ratio (hereafter "DCR", namely the ratio of NFP to EBITDA, defined contractually) as follows: DCR ≥ 3 Margin 145 bps; DCR < 3 and ≥ 1 Margin 130 bps; DCR < 1 margin 115 bps.

The Capex facility line (Cariparma line B loan) available upon request for € 15 million at 6M Euribor plus 160 bps was used to the extent of € 10 million as at 30 June 2018 as a result of the disbursement on 29 November 2017 to cover part of the investment in Warrant Group S.r.l. (described in more detail in Note 12 - Business Combinations. The repayment of principal will take place in half-yearly instalments starting from 31 December 2019, maturing on 30 June 2023, and interest will be paid on a half-yearly basis starting from 31 December 2017. The applicable margin shall be determined based on the Debt Cover Ratio (DCR) as follows: DCR ≥ 3 Margin 175 bps; DCR < 3 and ≥ 1 Margin 160 bps; DCR < 1 margin 145 bps. On the unused portion (€ 5 million as at 31 December 2017) there is a non-use fee, starting from 1 January 2018, equal to 15 bps, which will rise to 25 bps from 1 July 2018 and 35 bps from 1 January 2019.

On the Cariparma loans, Tecnoinvestimenti S.p.A. is committed, for each reference half-year, to respect the following limits: maximum DCR threshold of 3.5 and NFP/Equity ratio of 2.0. At 30 June 2018, these parameters were respected.

UBI Loan for an original amount of € 10 million obtained on 30 November 2017 to support the investment in Warrant Group S.r.l. The loan was disbursed at 6M Euribor plus 160 bps and requires repayment of principal in half-yearly instalments starting from 30 June 2019 and maturing on 30 June 2023, with interest paid on a half-yearly basis starting from 31 December 2017. The applicable margin shall be determined based on the Leverage Ratio (LR), which is the contractually defined ratio of NFP to EBITDA, as follows: LR ≥ 3 Margin 175 bps; LR < 3 and ≥ 1 Margin 160 bps; LR < 1 margin 145 bps. Starting from 30 June 2017 and for each reference half-year period, the Parent Company will need to meet the following financial limits: LR less than 3.5 and Gearing Ratio (ratio of NFP and Shareholders' Equity) lower than 2.0. At 30 June 2018, these parameters were respected.

The MPS loan was obtained on 7 January 2016 by Assicom S.p.A. (now Innolva S.p.A.) for the original amount of € 1,500 thousand, in order to finance the acquisition of Datafin concluded in 2015. The loan is not secured by guarantees. The loan, with a duration of 3 years, is repayable in 12 quarterly instalments, including capital and interest, as of 30 June 2016. The rate applied is an annual nominal rate of 0.81%, notwithstanding the possibility for the bank, with no obligation of advance notice, to adjust the rate to 6-month Euribor plus a fixed spread of 0.85 points per annum.

The Warrant Loans refer to the minor loans outstanding as at 30 June 2018, with different banking institutions under the Warrant group.

The changes in Bank loans are shown below, to allow for a better understanding of cash flows recognised under Financing activities in the Statement of Cash Flows:

Amounts in Euro	31/12/2017	IFRS 9 adjustment at 1/1/2018	Principal payments	Interest paid	Accrued interest	30/6/2018
Bank loans	50,418	-682	-3,976	-359	590	45,990

IFRS 9 Adjustment at 1 January 2018 involved a decrease in bank debt to account for the effects of changes in cash flows relative to refinancing during 2017, recognised prospectively in accordance with IAS 39, for which IFRS 9 requires immediate recognition in the income statement. The above decrease was recognised as an offsetting entry to shareholders' equity as at 1 January 2018.

Other current bank payables

Other current bank payables as at 30 June 2018 amount to € 805 thousand and refer to bank overdrafts of € 784 thousand used by the Group to meet temporary liquidity needs.

Liabilities for the purchase of non-controlling interests

The item Liabilities for the purchase of minority interests includes the liabilities for put options granted by the Group to the minority shareholders of RE Valuta S.p.A. (11.875%), Co.Mark S.p.A. (20%), Visura S.p.A. (40%), Sixtema S.p.A. (20%) and Warrant Group Srl (30%). The value of these liabilities was calculated as the current value of the amount to be paid at the contractual maturities against the reversal of the interests of these minority shareholders. As at 30 June 2018, the discount rate used was equal to the WACC used for the purposes of the impairment test of the goodwill resulting from the purchase of the equity investments in question (8.0%).

In thousands of Euro		30/6/2018			31/12/2017
	30/6/2018	Current	Non-current	31/12/2017	Current	Non current	Change
Warrant Group Put Options	24,834	13,215	11,619	23,901		23,901	933
Co.Mark Put Options	13,032	13,032		11,990	5,752	6,238	1,042
Visura Put Options	12,968	12,968		12,480		12,480	487
Sixtema Put Options	1,224	1,224		1,176		1,176	47
RE Valuta Put Options	1,064	1,064		1,024		1,024	40
Total Liabilities for the purchase of minority interests	53,122	41,503	11,619	50,572	5,752	44,820	2,550

Liabilities for contingent consideration

Liabilities for contingent consideration connected to acquisitions were determined at the present value of the amounts to be paid at the contractual expiries. As at 30 June 2018, the discount rate used was equal to WACC used for the purposes of the impairment test of the goodwill resulting from the purchase of the equity investments in question (8.0%).

In thousands of Euro		30/6/2018			31/12/2017
	30/6/2018	Current	Non-current	31/12/2017	Current	Non current	Change
Warrant Group contingent consideration (Earn Out)	2,786	2,786		2,777	2,777		9
Sixtema contingent consideration (Earn Out)	769	769		739		739	30
Eurofidi contingent consideration (Earn Out)	142	142		137		137	5
Eco-Mind App Factory contingent consideration (Earn Out)	0			361	361		-361
Total liabilities for contingent consideration (Earn Out)	3,697	3,697	0	4,014	3,138	876	-317

Changes in contingent consideration (Earn Out) are recognised in the Income Statement under Financial charges.

Payment of the contingent consideration linked to the selling shareholders of Eco-Mind App Factory for € 372 thousand was recognised during the period.

Price deferment liabilities

Price deferment liabilities represent the payable at the reporting date referring to deferments obtained from the selling shareholders of Co.Mark S.p.A. (€ 4,223 thousand), Warrant Group S.r.l. (€ 5,150 thousand) and Eurofidi for the disposal of the business unit (€ 162 thousand).

The changes in Price deferment liabilities are shown below, to allow for a better understanding of cash flows recognised under Financing activities in the Statement of Cash Flows:

Amounts in Euro	31/12/2017	Principal payments	Interest paid	Accrued interest	30/6/2018
Price deferment liabilities	11,083	-1,522	-112	86	9,535

Liabilities to Majority Shareholder for loans

The item Liabilities to Majority Shareholder refers to the loan of € 25 million, maturing on 30 June 2019, granted by the Majority Shareholder Tecno Holding S.p.A. in two tranches in 2016. For this loan, the expected interest is calculated at Euribor 6m/365 plus two percentage points. It is noted that the rate applied may never be less than 2% on an annual basis.

The changes in Liabilities to Majority Shareholder for loans are shown below, to allow for a better understanding of cash flows recognised under Financing activities in the Statement of Cash Flows:

Amounts in Euro	31/12/2017	Interest paid	Accrued interest	30/6/2018
Liabilities to Majority Shareholder for loans	25,252	-252	248	25,248

Liabilities for the purchase of leased assets

Liabilities for the purchase of leased assets include the liability with regard to Sixtema S.p.A. for an amount at 30 June 2018 of € 553 thousand, relative to a finance lease agreement with a duration of 18 years, maturing in 2030, concerning a portion of the property in Modena where the company office is located. The remaining amount of the liability equal to € 284 thousand can be ascribed to the remaining financial liability on a finance lease agreement on a property located in Buja (UD), where the company Innolva S.p.A. is headquartered.

The changes in Liabilities for the purchase of leased assets are shown below, to allow for a better understanding of cash flows recognised under Financing activities in the Statement of Cash Flows:

Amounts in Euro	31/12/2017	Principal payments	Interest paid	Accrued interest	New no cash-flow liabilities	30/6/2018
Liabilities for the purchase of leased assets	919	-119	-15	15	86	886

Payables to other lenders

Payables to other lenders amount to € 4,331 thousand (€ 2,109 as at 31 December 2017) and increased mainly due to recognition of € 1,449 thousand in debt for dividends resolved and partly unpaid by Warrant Group Srl.

The item also includes € 2,432 thousand in prepaid amounts paid by customers to purchase stamps and fees not yet used at the date of 30 June 2018 (€ 1,751 thousand as at 31 December 2017) and € 440 thousand to payables to customers for amounts recovered to be restituted as part of credit recovery activities of the Credit Information & Management Business Unit (€ 354 thousand as at 31 December 2017).

31. TRADE AND OTHER CURRENT PAYABLES

The item Trade and other current payables totalled Euro 52,434 thousand (Euro 47,725 thousand as at 31 December 2017) and can be detailed as follows:

Amounts in thousands of Euro	30/6/2018	31/12/2017	Change
Payables to suppliers	28,888	26,865	2,023
Payables to Majority Shareholder	90	106	-16
Payables to Associated companies	117	88	29
Due to Social security	4,966	4,745	222
VAT liability	4,743	909	3,834
Payable for withholding taxes to be paid	2,442	2,685	-243
Payables to employees	10,256	10,842	-585
Due to others	778	1,022	-244
Accrued sales charges	153	464	-311
Trade and other current payables	52,434	47,725	4,709
of which vs Related parties	227	242	-15

The increase in Payables to suppliers was impacted by the balances generated by the consolidation of the Camerfirma group, which at 30 June 2018 amounted to € 849 thousand.

32. CONTRACT LIABILITIES

Deferred revenue and income, equal to € 28,030 thousand as at 31 December 2017, was reclassified as at 1 January 2018 as a result of adoption of IFRS 15, under the items Contract liabilities (for € 27,780 thousand) and Deferred income (€ 250 thousand).

Contract liabilities represent the Group's obligation to transfer to the customer goods or services for which the Group has received consideration from the customer or for which consideration is due. This item was equal to € 47,983 thousand as at 30 June 2018 and can be broken down as follows:

Amounts in thousands of Euro	31/12/2017	IFRS 15 Reclassification 1/1/2018	IFRS 15 Adjustment 1/1/2018	Decreases revenues 1st Half 2018	Increases	Reclassifications	Change in Scope of Acquisitions	Change in Scope of Disposals	30/6/2018
Non-current contract liabilities	n.a.	1,437	4,149	0	2,644	-1,272	0	0	6,958
Current contract liabilities	n.a.	26,343	9,278	-16,657	20,821	1,272	25	-56	41,025
Contract liabilities	n.a.	27,780	13,427	-16,657	23,464	0	25	-56	47,983

The increase in the item Contract liabilities, with respect to reclassification from the item Deferred revenue and income, is first of all due to the adoption of IFRS 15, which involved recognition of greater liabilities as at 1 January 2018 for € 13,427 thousand.

33. DEFERRED INCOME

The item Deferred income totalled € 551 thousand (€ 250 thousand as at 31 December 2017) and includes deferrals for operating grants.

Information on the comprehensive income statement

With respect to First Half 2017, the consolidated figures of First Half 2018 include the balances from the first half-year of the Warrant group (Innovation & Marketing Services sector) consolidated as of 1 December 2017, the First Quarter 2018 balances of Sixtema S.p.A. (Digital Trust sector) consolidated from 1 April 2017, and the months of May and June for the Camerfirma group (Digital Trust sector) consolidated as of 1 May 2018; they do not include the balances of June for Creditreform Ticino SA (Credit Information & Management sector); therefore, the change in the income statement items, unless otherwise indicated, is attributable to the change in scope of consolidation.

Note that, as already commented extensively in Note 13 - Business Combinations of the 2017 Consolidated Financial Statements, in relation to completion of the activities for identification of the fair value of assets and liabilities of Sixtema S.p.A. as at the acquisition date, with respect to the previous accounting statements published, the comparative balances of First Half 2017 were re-stated as follows.

in thousands of Euro	2017	Completion of Sixtema Business combination	2017 restated
Revenues	85,404	0	85,404
Costs of raw materials	2,843	0	2,843
Service costs	33,347	0	33,347
Personnel costs	29,801	0	29,801
Contract costs	0	0	0
Other operating costs	1,028	0	1,028
Amortisation and depreciation	5,163	15	5,178
Provisions	0	0	0
Impairment	818	0	818
Total costs	73,000	15	73,015
OPERATING PROFIT	12,404	-15	12,389
Financial income	259	639	899
Financial charges	981	-8	972
Net financial income (charges)	-722	648	-74
Share of profit of equity-accounted investments, net of tax	2	0	2
PROFIT BEFORE TAX	11,685	633	12,318
Income taxes	3,705	-4	3,701
NET PROFIT FROM CONTINUING OPERATIONS	7,980	637	8,617
Profit (loss) from discontinued operations, net of tax	0	0	0
NET PROFIT	7,980	637	8,617

Since 1 January 2018, the Group has adopted IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments", which have led to changes in accounting policies and adjustments to the amounts entered in the accounts. Comparative 2017 data have not been restated, while the economic data for First Half 2018 are also stated without applying IFRS 15 and IFRS 9.

34. REVENUES

In First Half 2018 Revenues totalled € 114,510 thousand (€ 85,404 thousand in the same period of the previous year). Revenues rose compared to the same period of the prior year 34.1%, of which 3.6% due to organic growth, 30.3% to the change in the scope of consolidation and 0.2% to the adoption of IFRS 15 from 1 January 2018. The amount would have been € 114,347 thousand if the Group had not adopted IFRS 15.

In thousands of Euro	six-month period closed at 30 June
	2018	2017	Change
Revenues from sales and services	113,377	84,312	29,065
Other revenues and income	1,133	1,092	41
Revenues	114,510	85,404	29,106
of which vs Related parties	1,145	167	978
of which non-recurring	179	0	179

The following table summarises details of revenues by operating segment:

In thousands of Euro Six-month period closed at 30 June	Digital Trust		Credit Information & Management		Innovation & Marketing Services		Other units (Holding costs)			Total
	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
Segment revenue	45,799	39,215	37,296	36,921	31,656	9,407	330	251	115,082	85,794
Intra-unit revenue	117	32	125	109	0	0	330	250	572	390
Revenue from external customers	45,682	39,184	37,170	36,813	31,656	9,407	0	1	114,510	85,404

Non-recurring revenues of € 179 thousand regard the capital gain, recognised under Other revenues and income, achieved on the sale of a capital property (for details, see Note 14 - Property, plant and equipment).

35. COSTS OF RAW MATERIALS

Costs of raw materialsin First Half 2018 amounting to € 2,875 thousand (€ 2,843 thousand in the same period of the previous year), refer almost entirely to the Digital Trust Business Unit, largely due to InfoCert S.p.A., and mainly include the amounts relating to the purchase of IT products intended for resale to customers. Costs of raw materials are up compared to the same period of the prior year, equal to 1.1%, of which -6.8% due to organic change, -7.7% to the change in the scope of consolidation and 15.7% to the adoption of IFRS 15 from 1 January 2018. The amount would have been € 2,430 thousand if the Group had not adopted IFRS 15.

In thousands of Euro			six-month period closed at 30 June
	2018	2017	Change
Hardware, software	2,648	2,280	368
Production consumption	115	253	-138
Change in inventory of raw and ancillary materials, consumables and goods	112	200	-87
Other general consumption	0	110	-110
Costs of raw materials	2,875	2,843	33

36. SERVICE COSTS

In First Half 2018, service costs totalled € 38,657 thousand (€ 33,347 thousand in the same period in the previous year). Service costs rose compared to the same period of the prior year 15.9%, of which 6.7% due to organic change, 22.9% to the change in the scope of consolidation and -13.7% to the adoption of IFRS 15 from 1 January 2018. The amount would have been € 43,214 thousand if the Group had not adopted IFRS 15, mainly due to the different treatment of the portion of costs of the agent network, capitalised based on the new standard under Contract obtainment cost assets (pursuant to Note 19 - Contract cost assets) and recognised for the relative portion under Contract obtainment costs (pursuant to Note 38 - Contract costs).

In thousands of Euro	six-month period closed at 30 June
	2018	2017	Change
Purchase of access to databases	12,208	10,778	1,430
Technical services	10,242	5,948	4,293
Costs for agent network	1,445	4,052	-2,607
Costs for use of third-party assets	3,278	2,285	993
Specialist professional services	1,582	1,721	-139
Travel, assignments, and lodging expenses	1,716	1,229	487
Maintenance costs	1,113	1,198	-85
IT structure costs	1,104	1,029	74
Advertising, marketing and communication	1,394	833	562
Help desk services	959	812	146
Consultancy	467	502	-34
Network and connectivity costs	761	464	298
Utilities and telephone costs	565	432	133
Banking costs	386	302	84
Insurance	274	190	84
Independent auditors' fees for audit and other services	199	188	10
Statutory auditors' fees	192	176	16
Other service costs	1,924	1,476	448
Capitalised service costs	-1,154	-268	-886
Service costs	38,657	33,347	5,309
of which vs Related parties	635	736	-101
of which non-recurring	401	757	-356

The increase in Capitalised service costs is due to the effect of Capitalised service costs in fulfilment of the contract (introduced by IRFS 15) for the costs sustained in Digital Trust to implement "ad hoc" customer platforms to provide a series of services within a time frame of over twelve months, as better described in Note 19 - Contract cost assets.

In First Half 2018, non-recurring service coststotalled € 401 thousand, due to costs connected to acquisitions of target companies.

37. PERSONNEL COSTS

In First Half 2018, Personnel costs totalled € 38,447 thousand (€ 29,801 thousand in the same period of the previous year). Personnel costs rose compared to the same period of the prior year 29.0%, of which 3.4% due to organic growth, 28.0% to the change in the scope of consolidation and -2.4% to the adoption of IFRS 15 from 1 January 2018. The amount would have been € 39,165 thousand if the Group had not adopted IFRS 15, mainly due to recognition under Capitalised personnel costs of the suspension in Contract obtainment cost assets (Note 19 - Contract cost assets) of the costs sustained in Digital Trust for implementation of "ad hoc" customer platforms from which to provide a series of services within a time frame of over twelve months.

In thousands of Euro	six-month period closed at 30 June
	2018	2017	Change
Wages and salaries	26,325	20,034	6,292
Social security contributions	7,443	5,483	1,960
Employee severance indemnity	1,725	1,338	387
Other personnel costs	1,838	1,233	605
Capitalised personnel costs	-1,144	-483	-661
Directors' fees	1,933	2,108	-175
Ongoing partnerships	327	88	239
Personnel costs	38,447	29,801	8,646
of which non-recurring	134	380	-246

The following table shows the number of employees as at 30 June 2018 and the average number of employees in First Half 2018 compared to First Half 2017.

Number of employees	30/6/2018	avg. no. six-month period closed at 30 June
		2018 2017
Senior managers	34	32	31
Middle managers	171	163	128
Employees	1,041	1,001	784
Total	1,246	1,196	943

The allocation for the half-year of € 182 thousand relating to the liability connected with the Virtual Stock Options Plan approved by the Board of Directors of the Parent Company on 14 November 2016 was included in the item Other personnel costs, aimed at key management personnel, targeted at disbursing deferred sums corresponding to the growth in value of Tecnoinvestimenti shares. Allocations and releases of employee benefit provisions were also recognised in the item.

Non-recurring personnel costs recognised in First Half 2018 mainly refer to the costs for reorganisation of the Credit Information & Management sector, already launched in 2017.

38. CONTRACT COSTS

The item Contract costs, introduced following application of IFRS 15, includes the periodic release of the period's share of the incremental cost assets capitalised for obtaining or fulfilling the contract (better described in Note 19 - Contract cost assets).

In thousands of Euro	six-month period closed at 30 June 2018
Contract obtainment costs	3,683
Contract fulfilment costs	961
Contract costs	4,644

39. OTHER OPERATING COSTS

In First Half 2018 Other operating costs totalled € 1,014 thousand (€ 1,028 thousand in the same period in the previous year), of which € 3 thousand with respect to Related parties. These costs refer to items of a residual nature such as membership fees, donations and gifts, sundry taxes and duties, sanctions and penalties and contingent liabilities.

40. AMORTISATION/DEPRECIATION, PROVISIONS AND IMPAIRMENTS

Details of the items depreciation/amortisation, provisions and impairment are summarised below:

In thousands of Euro	six-month period closed at 30 June
	2018	2017	Change
Depreciation of property, plant and equipment	1,775	1,309	466
Amortisation of intangible assets	4,517	3,869	648
Amortisation/Depreciation	6,292	5,178	1,114
Provisions	-117	0	-117
Impairment	890	818	72

Amortisation and depreciation in First Half 2018 amount to € 6,292 thousand (€ 5,178 thousand in the same period of the prior year), of which € 1,775 thousand referring to Property, plant and equipment and € 4,517 thousand to Intangible assets. With regard to their composition, we refer to the tables of changes in Property, plant and equipment and Intangible assets, respectively in Notes 14 and 15.

Provisions for the period, equal to a negative value of € 117 thousand, refer to the release of provisions made in prior years for -€ 199 thousand, due to elimination of the risks linked to customer and supplier disputes and to the provision of € 82 thousand for new risks.

The item Impairment in the period refers entirely to adjustment for the expected losses on trade receivables; in this regard, please refer to Note 21 - Trade and other receivables.

41. NET FINANCIAL CHARGES

In First Half 2018, Net financial charges totalled € 995 thousand (€ 74 thousand in the same period in the previous year). The amount would have been € 885 thousand if the Group had not adopted IFRS 9.

In thousands of Euro		six-month period closed at 30 June
	2018	2017	Change
Financial income	82	899	-817
of which non-recurring	0	747	-747
Financial charges	1,077	972	104
of which vs Related parties	248	248	0
Net financial income (charges)	-995	-74	-921

Financial income

Non-recurring financial income in First Half 2017 includes income from the consolidation of Sixtema S.p.A., equal to € 747 thousand. Financial income for First Half 2018 includes the capital gain of € 29 thousand recognised as a result of disposal of the stake in Gestio S.r.l. (for details, see Note 16 - Equity investments).

Financial charges

In thousands of Euro	six-month period closed at 30 June
	2018	2017	Change
Interest expenses	708	627	81
Amortised cost	244	94	149
Negative adjustment to the fair value of contingent consideration	55	149	-94
Negative adjustment to financial instruments at fair value	3	14	-11
Charges on hedging derivatives	58	53	5
Other financial charges	9	35	-26
Financial charges	1,077	972	104
of which vs Related parties	248	248	0

Interest expensesrecognised comprise € 356 thousand in bank loans pursuant to Note 30 - Financial liabilities; the total financial charges in the period related to bank loans also include € 244 thousand for expenses accrued by applying the effective interest criterion (it would have been € 134 thousand if IFRS 9 had not been adopted), and € 58 thousand for Charges on hedging derivatives.

Interest expenses also include € 248 thousand in costs (same amount as in first half of 2017) on the € 25 million loan obtained by Majority Shareholder Tecno Holding and € 87 thousand (€ 62 thousand in First Half 2017) on deferrals granted to the selling shareholders Co.Mark S.p.A. and Warrant Group Srl.

The negative adjustment to the fair value of contingent considerations was impacted by adjustment of the contingent considerations (Earn outs) to be paid to the selling shareholders of Sixtema, Warrant Group, Eco-Mind App Factory and Eurofidi with respect to the amount estimated at 31 December 2017. For details, please refer to the matters already discussed in Note 30 - Financial liabilities, excluding derivative financial instruments.

The Negative adjustment to financial instruments at fair value is related to financial assets classified as "Financial assets at fair value recognised in the income statement" referred to in Note 23 - Other current financial assets.

42. INCOME TAXES

In First Half 2018, the income tax expense totalled € 6,240 thousand, and can be detailed as follows:

In thousands of Euro	six-month period closed at 30 June
	2018	2017	Change
IRES	4,922	4,137	785
IRAP	940	876	64
Current foreign taxes	32	18	15
Deferred tax liabilities	-739	-575	-164
Deferred tax assets	1,448	-165	1,612
Income taxes related to previous years	34	-16	50
Proceeds from tax consolidation	-397	-574	177
Income taxes	6,240	3,701	2,539
of which non-recurring	-104	-294	190

The actual tax rate on the Profit before tax is 29.9%, essentially in line with the first half of the prior year (30.0%).

The item Deferred tax liabilities refers predominantly to the releases of deferred tax liabilities relating to the amortisation of intangible assets recorded at the time of the accounting of business combinations at fair value, as better detailed in Note 18.

The item Deferred tax assets includes releases of assets allocated as at 1 January 2018 following introduction of IFRS 15. This allocation, recognised under Shareholders' equity, was € 3,987 thousand.

The item Proceeds from tax consolidation includes income recognised by InfoCert S.p.A. for the GOP (Gross operating profit) transferred in 2017 to the tax consolidation. Note that following tax consolidation in 2017 under Majority Shareholder Tecno Holding S.p.A., the tax losses recognised in First Half 2018 were recognised under Deferred tax assets, given the expected recoverability for the new tax consolidation option by the end of the year.

43. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing Net profit for the period attributable to the Group by the weighted average number of ordinary shares outstanding during the period (net of any treasury shares):

In thousands of Euro		six-month period closed at 30 June
	2018	2017
Net profit (Euro thousands)	14,206	8,584
Weighted average number of outstanding ordinary shares	46,573,120	46,256,120
Basic earnings per share (Euro)	0.31	0.19

Diluted earnings, equal to € 0.30 per share, include the effects of the 2016-2019 Tecnoinvestimenti Warrants for a total of 634,000 shares, granted in favour of the shareholder Cedacri S.p.A., which envisage an issue price of shares in service of the Warrants of € 3.40 per share, compared to an average fair value of Tecnoinvestimenti shares in First Half 2018, weighted by volume, of € 6.70 per share:

In thousands of Euro		six-month period closed at 30 June
	2018	2017
Net profit (Euro thousands)	14,206	8,584
Diluted weighted average number of shares	46,885,492	46,578,803
Diluted earnings per share (Euro)	0.30	0.18

44. TRANSACTIONS WITH RELATED PARTIES

All transactions with Related parties are part of normal business operations and are regulated at normal market conditions.

Below is the summary table of all equity balances and the incidence on the related items of the financial statements as at 30 June 2018 and the relative comparative figures as at 31 December 2017:

	30/6/2018
In thousands of Euro	Non-current financial assets	Current tax assets	Trade and other current receivables	Non-current financial liabilities	Current financial liabilities	Trade and other current payables	Current tax liabilities
Majority Shareholder	8	1,133	20		25,248	90	1,998
Associated companies			1			117
Other Related parties			451			19
Total Related parties	8	1,133	473	0	25,248	227	1,998
Total financial statement item	850	1,490	83,211	57,769	85,845	52,434	11,078
% Incidence on Total	0.9%	76.0%	0.6%	0.0%	29.4%	0.4%	18.0%

			31/12/2017
In thousands of Euro	Non-current financial assets	Current tax assets	Trade and other current receivables	Non-current financial liabilities	Current financial liabilities	Trade and other current payables	Current tax liabilities
Majority Shareholder	0	1,167	20	25,000	252	106	2395
Associated companies						63
Other Related parties			543			72
Total Related parties	0	1,167	563	25,000	252	242	2,395
Total financial statement item	543	1,990	80,285	123,935	21,723	47,725	6,125
% Incidence on Total	0.0%	58.6%	0.7%	20.2%	1.2%	0.5%	39.1%

Assets and liabilities related to current taxes refer, respectively, to payables and receivables arising from the tax losses and taxable income transferred respectively by the Majority Shareholder and by InfoCert S.p.A., up to 2017, as part of the tax consolidation headed by the Majority Shareholder Tecno Holding S.p.A. Note that the terms of the tax consolidation for the period 2015-2017 have expired.

The item Financial liabilities due to the Majority Shareholder refers to the loan of € 25,000 thousand, expiring on 30 June 2019, disbursed by Tecno Holding S.p.A. in two tranches in 2016. For this loan, the expected interest is calculated at the Euribor 6m/365 plus two percentage points. It is noted that the rate applied may never be less than 2% on an annual basis.

The table below summarises all economic transactions and the incidence on the associated items of the income statement in First Half 2018 and the relative comparative balances in First Half 2017:

six-month period closed at 30 June 2018
In thousands of Euro	Revenues	Service costs	Other operating costs	Financial charges
Majority Shareholder		190		248
Associated companies	1	21
Other Related parties	1,144	423	3
Total Related parties	1,145	635	3	248
Total financial statement item	114,510	38,657	1,014	1,077
% Incidence on Total	1.0%	1.6%	0.3%	23.0%
		six-month period closed at 30 June 2017
In thousands of Euro	Revenues	Service costs	Other operating costs	Financial charges
Majority Shareholder		162	4	248
Associated companies	167	115
Other Related parties		459	9
Total Related parties	167	736	13	248
Total financial statement item	85,404	33,347	1,028	972
% Incidence on Total	0.2%	2.2%	1.3%	25.5%

Service costs to the Majority shareholder mainly relate to lease contracts in place for the offices used by the Parent Company (Rome and Milan) and InfoCert S.p.A. Financial charges to the Majority Shareholder refer to interest accrued on the loan mentioned above.

Transactions with associates in First Half 2017 referred to Sixtema S.p.A., associated up to 31 March 2017.

Service costs to other Related parties refer primarily to costs for lease fees of the offices of Co.Mark S.p.A. and the Visura group.

45. NET FINANCIAL INDEBTEDNESS

As required by Consob communication no. DEM/6064293 of 28 July 2006, the Group's Net financial indebtedness as at 30 June 2018 is provided below:

	30/6/2018	of which vs Related parties	31/12/2017	of which vs Related parties
A Cash	43,316		36,953
B Cash equivalents	36		34
C Securities held for trading	0		0
D Liquidity (A+B+C)	43,352		36,987
E Current financial receivables	4,110		4,311
F Current bank debt	-817		-1,297
G Current portion of non-current debt	-7,579		-7,355
H Other current financial debt	-77,453	-25,248	-13,071	-252
I Current financial debt (F+G+H)	-85,849		-21,723
J Net current financial indebtedness (D+E+I)	-38,387		19,574
K Non-current bank debt	-38,399		-43,058
L Bonds issued	0		0
M Other non-current financial payables	-19,559		-81,079	-25,000
N Non-current financial debt (K+L+M)	-57,958		-124,137
O Net financial position (indebtedness) (J+N)	-96,345		-104,563

46. SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE PERIOD

On 5 July 2018, the company Innolva S.p.A. completed its acquisition of Comas S.r.l. and Webber S.r.l., two companies active in the sale of business and real estate information through the internet. The transaction is part of the broader strategy aimed at strengthening the positioning on the web and increasing Innolva's market share. Comas S.r.l. and Webber S.r.l., respectively established in 1976 and 2013, are predominantly active in the resale, through the internet, of business information such as filings with the Chambers of Commerce, cadastral property registries, the automobile registry, and the Registry Office, and court certificates, reports on natural and legal persons and other information services. Through the Comas and Webber web sites, Innolva will commercialize its higher value-added products, such as business information, marketing lists, scoring and rating, and it will invest in its positioning, starting from this platform that boasts approximately 2.5 million unique visitors per year. The total consideration for the two companies amounts to € 9.25 million, of which € 0.49 million paid, as a deferred price, over 5 years with regular payments. The transaction will be funded by internal resources.

On 12 July 2018, Tecnoinvestimenti S.p.A. completed the purchase of an additional 10% of Co.Mark S.p.A., which operates in the Innovation & Marketing Services Business Unit, for a total amount of € 6,296 thousand, following the exercising of the second put option by minority shareholders within the contractually envisaged times. The initial acquisition contract for 70% of the share capital indeed envisaged that the remaining 30%, held by the founding shareholders, be subject to Put&Call option rights, which may be exercised in three annual tranches of 10% each, at a price calculated through the application of a variable multiple on annual EBITDA, taking into account the net financial position and on the basis of the growth rates recorded. Tecnoinvestimenti's stake in Co.Mark S.p.A. has thus risen to 90%.

Certification of the Condensed Interim Consolidated Financial Statements pursuant to art. 81-ter of Consob Regulation no. 11971 of 14 May 1999 as amended

1. The undersigned Pier Andrea Chevallard and Nicola Di Liello, as Chief Executive Officer and Designated Manager Responsible for the preparation of the Corporate Accounts of Tecnoinvestimenti S.p.A., respectively, certify, taking into account the provisions of art. 154-bis, paragraphs 3 and 4, of Italian Legislative Decree 24 February 1998 n. 58:
the adequacy in relation to the characteristics and
the effective application of the administrative and accounting procedures in drawing up the Condensed Consolidated Financial Statements of First Half 2018.
1. In this regard, it is stated that no significant aspects were identified.
1. It is also certified that:
3.1 The Condensed Interim Consolidated Financial Statements:
a. are drawn up in accordance with the applicable international accounting standards recognised in the European Community pursuant to (EC) Regulation no. 1606/2002 of the European Parliament and Council of 19 July 2002;
b. correspond to the results of the books and accounting records;
c. are suitable in providing a true and accurate representation of the balance sheet, income statement and financial position of the issuer and of the set of companies included within the consolidation.

3.2 The Interim Report on Operations provides a reliable analysis of information on the key events that took place during the first six months of the year and on their impact on the Condensed Interim Consolidated Financial Statements, along with a description of the main risks and uncertainties for the remaining six months of the year. The Interim Report on Operations also includes a reliable analysis of the information on significant transactions with Related parties.

Milan, 2 August 2018

Pier Andrea Chevallard Nicola Di Liello

Chief Executive Officer Manager Responsible for the preparation of Corporate Accounting Documents

AI assistant

Tinexta — Interim / Quarterly Report 2018

4493_ir_2018-08-28_5fda2c39-e871-49bc-9fed-170aeadcaaa8.pdf

HALF-YEAR FINANCIAL REPORT at 30/6/2018 at 30.06.2018

CONTENTS

COMPANY DATA and COMPOSITION OF THE CORPORATE GOVERNANCE BODIES

Parent Company's Registered Office

Statutory Information about the Parent Company

Corporate governance bodies currently in office

Control and Risks and Related Parties Committee

Remuneration Committee

Board of Statutory Auditors

Independent Auditors KPMG S.p.A.

SUMMARY OF GROUP RESULTS

INTERIM REPORT ON OPERATIONS

GROUP ACTIVITIES

KEY EVENTS OF THE PERIOD

DEFINITION OF PERFORMANCE INDICATORS

GROUP ECONOMIC RESULTS

Non-recurring items

Results by business segment

Digital Trust

Credit Information & Management

Innovation & Marketing Services

GROUP BALANCE SHEET AND FINANCIAL POSITION

Group Net Financial Position

in thousands of Euro

KEY EVENTS SUBSEQUENT TO THE END OF FIRST HALF 2018

OUTLOOK

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Financial Statements

Consolidated Statement of Financial Position

Consolidated Statement of Profit or Loss and other comprehensive income

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Condensed Interim Consolidated Financial Statements at 30 June 2018

1. ENTITY THAT PREPARES THE FINANCIAL STATEMENTS

2. PREPARATION CRITERIA AND COMPLIANCE WITH IFRS

3. PRESENTATION CRITERIA

4. SCOPE OF CONSOLIDATION AND CONSOLIDATION CRITERIA

ASSOCIATED COMPANIES

5. TRANSLATION OF FINANCIAL STATEMENTS EXPRESSED IN CURRENCIES OTHER THAN THE PRESENTATION CURRENCY

6. SECTOR INFORMATION

7. NEW STANDARDS OR AMENDMENTS FOR 2018 AND FUTURE REQUIREMENTS

ACCOUNTING STANDARDS AND AMENDMENTS TO THE STANDARDS ADOPTED BY THE COMPANY

c) Accounting standards and interpretations to be applied in the near future:

8. USE OF ESTIMATES

9. MANAGEMENT OF FINANCIAL RISK

Exchange rate risk

Interest rate risk

Credit risk

Liquidity risk

10. CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES

11. FAIR VALUE HIERARCHY

12. BUSINESS COMBINATIONS

BUSINESS COMBINATIONS FOR WHICH ACCOUNTING RECOGNITION HAS NOT BEEN COMPLETED

Acquisition of Warrant Group Srl.

Acquisition of Eurofidi business unit

Acquisition of AC Camerfirma S.A.

Amounts in thousands of Euro

13. DIVESTITURES

In thousands of Euro

Information on the Statement of financial position

14. PROPERTY, PLANT AND EQUIPMENT

15. INTANGIBLE ASSETS AND GOODWILL

Goodwill

Other intangible assets with indefinite useful life

Intangible assets with definite useful life

16. EQUITY INVESTMENTS

Equity-accounted investments

Other investments

17. OTHER NON-CURRENT FINANCIAL ASSETS, EXCLUDING DERIVATIVE FINANCIAL INSTRUMENTS

18. DEFERRED TAX ASSETS/LIABILITIES

19. CONTRACT COST ASSETS

20. CONTRACT ASSETS

21. TRADE AND OTHER RECEIVABLES

22. INVENTORIES

23. OTHER CURRENT FINANCIAL ASSETS, EXCLUDING DERIVATIVE FINANCIAL INSTRUMENTS

24. CURRENT TAX ASSETS AND LIABILITIES

25. DERIVATIVE FINANCIAL INSTRUMENTS

Tinexta Interim / Quarterly Report 2018