Tinexta — Interim / Quarterly Report 2021

Aug 3, 2021

Informazione Regolamentata n. 20053-68-2021		Data/Ora Ricezione 03 Agosto 2021 14:34:25	MTA - Star
Societa'	:	TINEXTA
Identificativo Informazione Regolamentata	:	150746
Nome utilizzatore	:	TINEXTANSS01 - POZZI
Tipologia	:	1.2
Data/Ora Ricezione	:	03 Agosto 2021 14:34:25
Data/Ora Inizio Diffusione presunta	:	03 Agosto 2021 14:34:26
Oggetto	:	the results as at 30 June 2021	The Board of Directors of Tinexta approved
Testo del comunicato

Vedi allegato.

PRESS RELEASE

TINEXTA: THE GROWTH CONTINUES IN THE FIRST HALF OF 2021

The Board of Directors of Tinexta approved the results as at 30 June 2021:

• Revenues: €177.8 million, +43.6%
• EBITDA: €40.3 million, +17.0%.
• Adjusted EBITDA: €42.3 million, +21.2%.
• Net profit: €20.6 million, +29.5%.
• Adjusted net profit: €20.4 million, +22.6%.
• Free Cash Flow: €29.7 million (€67.5 million in the last twelve months to 30 June 2021)
• Net Financial Position: €205.2 million
• Guidance for 2021 confirmed

* * * *

3 August 2021. The Board of Directors of Tinexta S.p.A., leading company in Digital Trust, Cyber Security, Credit Information & Management and Innovation & Marketing services, listed on the STAR segment of the Italian Stock Exchange, today approved the Half-Yearly Financial Report as at 30 June 2021. In the first half of 2021, Revenues amounted to Euro 177.8 million (+43.6%), EBITDA to Euro 40.3 million (+17.0%), Adjusted EBITDA to Euro 42.3 million (21.2%) and Net profit stood at Euro 20.6 million (+29.5%).

Chairman Enrico Salza commented: "The Group today presents the results of a positive half-year, with an uninterrupted growth trend that confirms the validity of the development strategies and the solidity of the project. The desire to grow, supporting businesses and accompanying the implementation and perfection of the digital pact, necessary for the Country and its economic recovery, remains Tinexta's main horizon".

Chief Executive Officer Pier Andrea Chevallard added: "The first half of 2021 confirms the distinctive characteristics of the Tinexta Group, which position it at the heart of the economy's new growth phase, focused on digital. The results just approved highlight the growth of all Business Units with significant cash generation, thus enabling us to confirm the guidance shared with the market.

The first half of the year has also confirmed the effectiveness of the Group's M&A strategy, which concluded acquisition transactions, in Italy and abroad, that strengthen its competitive position, allowing it to seize the opportunities of a recovering economy, with a new, significant, international projection".

CONSOLIDATED GROUP FINANCIAL RESULTS AS AT 30 JUNE 2021

Summary economic data (€'000s)	1st Half 2021	1st Half 20201	Change	Change
Revenues	177,813	123,817	53,996	43.6%
EBITDA	40,270	34,412	5,858	17.0%
Adjusted EBITDA	42,287	34,903	7,385	21.2%
Operating Profit	26,403	21,576	4,827	22.4%
Adjusted operating profit	31,071	25,053	6,018	24.0%
Net Profit	20,641	15,936	4,706	29.5%
Adjusted Net Profit	20,426	16,667	3,759	22.6%
Free cash flow	29,663	28,919	744	2.6%

The Group closed the first half of 2021 with Revenues of Euro 177.8 million. EBITDA amounted to Euro 40.3 million, equal to 22.6% of Revenues. Operating profit and Net profit amounted to Euro 26.4 million and Euro 20.6 million respectively, representing 14.8% and 11.6% of Revenues.

Revenues are up 43.6% compared to the first half of 2020, EBITDA is up 17.0%, EBIT up 22.4%, and Net Profit up 29.5%.

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

Consolidated Income Statement (€'000s)	1st half 2021	%	1st Half 2020	%	Change	Change %
Revenues	177,813	100.0%	123,817	100.0%	53,996	43.6%
Total Operating Costs*	136,640	76.8%	89,366	72.2%	47,274	52.9%
Costs of raw materials	5,970	3.4%	4,515	3.6%	1,456	32.2%
Service costs	56,111	31.6%	39,905	32.2%	16,207	40.6%
Personnel costs*	69,550	39.1%	40,201	32.5%	29,349	73.0%
Contract costs	4,050	2.3%	3,831	3.1%	219	5.7%
Other operating costs	958	0.5%	915	0.7%	44	4.8%
EBITDA before Stock Options	41,173	23.2%	34,451	27.8%	6,722	19.5%
Stock Option cost	903	0.5%	39	0.0%	864	2240,1%
EBITDA	40,270	22.6%	34,412	27.8%	5,858	17.0%
Adjusted EBITDA	42,287	23.8%	34,903	28.2%	7,385	21.2%
Amortisation and depreciation	12,754	7.2%	10,598	8.6%	2,155	20.3%
Provisions	444	0.2%	360	0.3%	84	23.2%
Impairment	670	0.4%	1,878	1.5%	-1,207	-64.3%
Operating Profit	26,403	14.8%	21,576	17.4%	4,827	22.4%
Financial income	83	0.0%	951	0.8%	-868	-91.3%
Financial charges	1,877	1.1%	1,370	1.1%	506	37.0%
Net Financial Charges	1,794	1.0%	419	0.3%	1,374	327.7%
Profit of equity-accounted investments	-180	-0.1%	91	0.1%	-271	-297.5%

Income statement for the first half of 2021, compared with the same period of the previous year.

¹The comparable figures for the first half of 2020 have been restated in relation to the conclusion in the fourth quarter of 2020 of the activities to identify the fair values of the assets and liabilities of PrivacyLab S.r.l., which is consolidated on a line-by-line basis from 1 January 2020.

Profit before tax	24,429	13.7%	21,248	17.2%	3,181	15.0%
Income taxes	3,787	2.1%	5,312	4.3%	-1,525	-28.7%
Net Profit	20,641	11.6%	15,936	12.9%	4,706	29.5%
of which minority interests	281	0.2%	201	0.2%	80	39.9%

* Personnel costs are recognised net of the Stock Option cost, shown below, in order to better understand the composition of EBITDA before the Stock Options.

Revenues increased from Euro 123.8 million in the first half of 2020 to Euro 177.8 million in the first half of 2021. The increase in Revenues attributable to the change in the scope of consolidation was 31.0% (Euro 38.4 million), organic growth was 12.6% (Euro 15.6 million).

Operating costs increased from Euro 89.4 million in the first half of 2020 to Euro 136.6 million in the first half of 2021. The increase is attributable to the change in the scope of consolidation for 37.3% (Euro 33.4 million), the remaining 15.6% is attributable to organic growth (Euro 13.9 million).

EBITDA before stock options increased from Euro 34.5 million in the first half of 2020 to Euro 41.2 million in the first half of 2021, an increase of Euro 6.7 million or 19.5%.

At 30 June 2021, costs of Euro 0.9 million relating to the 2020-2022 Stock Option Plan and costs of Euro 0.01 million relating to the 2021-2023 Stock Option Plan were accrued.

Adjusted EBITDA increased by Euro 7.4 million, or 21.2%, attributable to the change in the scope of consolidation for 15.0% (Euro 5.2 million) and organic growth for 6.1% (Euro 2.1 million).

The item Amortisation, depreciation, impairment and provisions includes Euro 2.7 million of amortisation of Other intangible assets arising from the allocation of the price paid in the Business Combinations (Euro 3.0 million in the first half of 2020), mainly of Warrant Hub, Visura and Innolva.

Net financial costs in the first half of 2021 amounted to Euro 1.8 million and compared with Net Financial Expenses in the same period of 2020 of Euro 0.4 million. The increase in Net financial costs was affected by the non-recurring income recognised in the first half of 2020 for the renegotiation of loans amounting to Euro 0.7 million. The further increase in Financial expenses is attributable to the increase in bank debt in support of the acquisitions carried out.

Taxes, calculated on the basis of the rates set out for the year by current legislation, amounted to Euro 3.8 million (compared to Euro 5.3 million in the first half of 2020). The tax rate is 15.5% (25.0% in the first half of 2020), due to non-recurring tax income of Euro 3.4 million resulting from the redemption ofstatutory/taxable value differentials, as well as income of Euro 0.8 million from the rebate of the first advance payment of IRAP 2020, recognised as a result of the extension of the ceiling to the benefit provided by Law Decree 41/2021, the so-called 'Support Decree'. The first half of 2020 had also benefited from non-recurring tax income of Euro 1.1 million.

Net profit in the first half of 2021 amounted to Euro 20.6 million (of which Euro 0.3 million attributable to minority interests), compared with Euro 15.9 million in the first half of 2020.

Free Cash Flow in the first half of 2021 amounted to Euro 29.7 million (Euro 28.9 million in the same period of 2020). The Free Cash Flow generated in the last twelve months as of 30 June 2021 amounted to Euro 67.5 million.

Adjusted Group Results

The adjusted income statement results are calculated gross of non-recurring items, of the cost related to stock option plans, of the amortisation of Other intangible assets arising from the allocation of the price paid in the Business Combinations and of the adjustment of contingent consideration liabilities related to acquisitions, net of related tax effects. These indicators reflect the Group's economic performance, adjusted for non-recurring factors that are not strictly related to the activity and management of the "core business".

Adjusted Income Statement (€'000s)	1st half 2021	%	1st half 2020	%	Change	Change %
Adjusted revenues	177,813	100.0%	123,743	100.0%	54,070	43.7%
Adjusted EBITDA	42,287	23.8%	34,903	28.2%	7,385	21.2%
Adjusted operating profit	31,071	17.5%	25,053	20.2%	6,018	24.0%
Adjusted net profit	20,426	11.5%	16,667	13.5%	3,759	22.6%

Adjusted results show an increase in revenue compared to the first half of 2020 of 43.7%, EBITDA of 21.2%, operating profit of 24.0% and net profit of 22.6%.

Non-recurring components

During the first half of 2021, non-recurring operating costs of Euro 1.1 million were recognised in connection with acquisitions of target companies.

Non-recurring taxes include non-recurring income totalling Euro 4.3 million, mainly related to the redeeming of statutory/fiscal value differentials and to IRAP benefits provided by the so-called "Support Decree". In the first half of 2020, non-recurring revenues of Euro 0.1 million, non-recurring operating expenses of Euro 0.5 million, non-recurring financial income of Euro 0.7 million and non-recurring tax income of Euro 1.0 million were recognised.

Stock Option costs

The costs, amounting to Euro 0.9 million, relate to the 2020-2022 Stock Option Plan and to a minor extent to the 2021-2023 Stock Option Plan.

Amortisation of Other intangible assets from Business Combinations

Amortisation of other intangible assets arising from the allocation of the price paid in the Business Combinations amounted to Euro 2.7 million (Euro 3.0 million in the same period previous year).

Adjustment of the contingent considerations connected to acquisitions

Adjustments of potential consideration related to acquisitions resulted in the recognition of net financial expenses of Euro 0.02 million (in the same period of the previous year financial income amounted to Euro 0.16 million).

RESULTS BY BUSINESS SEGMENT

Adjusted economic results by business segment.

		EBITDA		EBITDA				Change %
Adjusted condensed Income Statement by business segment	1st half 2021	% 1st half 2021	1st half 2020	% 1st half 2020	Change	Total	Organic	Scope of consolidation
Revenues
Digital Trust	63,618		55,359		8,259	14.9%	14.9%	0.0%
Cyber Security	34,623		0		34,623	n.a.	0.0%	n.a.
Credit Information & Management	38,706		35,273		3,433	9.7%	9.7%	0.0%
Innovation & Marketing Services	41,664		33,700		7,964	23.6%	11.7%	12.0%
Other Segments (Parent Company)	1,178		1,060		118	11.2%	11.2%	0.0%
Intra-segment	-1,975		-1,648		-327	19.8%	4.3%	15.5%
Total adjusted revenues	177,813		123,743		54,070	43.7%	12.7%	31.0%
EBITDA
Digital Trust	15,604	24.5%	13,962	25.2%	1,642	11.8%	11.8%	0.0%
Cyber Security	3,487	10.1%	0	n.a.	3,487	n.a.	0.0%	n.a.
Credit Information & Management	11,424	29.5%	10,155	28.8%	1,269	12.5%	12.5%	0.0%
Innovation & Marketing Services	17,133	41.1%	14,952	44.4%	2,181	14.6%	2.8%	11.8%
Other Segments (Parent Company)	-5,360	n.a.	-4,167	n.a.	-1,194	-28.6%	-28.6%	0.0%
Total adjusted EBITDA	42,287	23.8%	34,903	28.2%	7,385	21.2%	6.1%	15.0%

		EBITDA		EBITDA				Change %
Adjusted condensed Income Statement by business segment	2nd quarter 2021	% 2nd quarter 2021	2nd Quarter 2020	% 2nd quarter 2020	Change	Total	Organic	Scope of consolidation
Revenues
Digital Trust	32,438		29,248		3,190	10.9%	10.9%	0.0%
Cyber Security	17,837		0		17,837	n.a.	0.0%	n.a.
Credit Information & Management	19,837		18,221		1,616	8.9%	8.9%	0.0%
Innovation & Marketing Services	25,519		21,706		3,813	17.6%	5.2%	12.4%
Other Segments (Parent Company)	609		535		74	13.9%	13.9%	0.0%
Intra-segment	-1,093		-878		-215	24.5%	-2.8%	27.3%
Total adjusted revenues	95,147		68,832		26,315	38.2%	8.8%	29.5%
EBITDA
Digital Trust	8,439	26.0%	8,043	27.5%	396	4.9%	4.9%	0.0%
Cyber Security	1,553	8.7%	0	n.a.	1,553	n.a.	0.0%	n.a.
Credit Information & Management	6,144	31.0%	6,572	36.1%	-427	-6.5%	-6.5%	0.0%
Innovation & Marketing Services	12,139	47.6%	11,556	53.2%	583	5.0%	-6.9%	12.0%
Other Segments (Parent Company)	-2,982	n.a.	-2,267	n.a.	-715	-31.5%	-31.5%	0.0%
Total adjusted EBITDA	25,293	26.6%	23,904	34.7%	1,389	5.8%	-6.5%	12.3%

Digital Trust

Adjusted revenues of the Digital Trust segment amounted to Euro 63.6 million. The increase compared to the first half of 2020 is 14.9% (Euro 8.3 million). During the first half of 2021, the growth in demand for digital and dematerialisation services continued, supporting both growth in standard products such as Certified Electronic Mail (Legalmail) and ature (LegalCert), and an increase in Off the Shelf revenues (Telematic Trust Solutions). The growth of the product linked to SPID (Sistema Pubblico di Identità Digitale -

Public Digital Identity System) continued. Revenues from Enterprise Solutions also increased, due to both the consolidation of existing projects and new commercial initiatives. The Group continues to develop its digital onboarding offering, which allows it to guarantee its customers remote work continuity with high standards of security and functionality.

The adjusted EBITDA of the segment amounted to Euro 15.6 million. The increase compared to the first half of 2020 is 11.8% (Euro 1.6 million). The EBITDA margin is 24.5% compared to 25.2% in the first half of 2020.

Cyber Security

Adjusted revenues of the Cyber security segment amounted to Euro 34.6 million, while adjusted EBITDA was Euro 3.5 million. The EBITDA margin is 10.1%. The results achieved by the BU in the first half of 2021 are in line with expectations, both in terms of business volume developed and margins. The BU is developing both initiatives related to project activities and to the provision of dedicated services, starting to seize the market opportunities offered in a context of increasing integration among both BU and Group companies.

Credit Information & Management

In the Credit Information & Management segment, Adjusted Revenues amounted to Euro 38.7 million, an increase of 9.7% compared to the first half of 2020 (Euro 3.4 million), due to the recovery of Real Estate appraisal services and the increase in Business Information activities, which overcame the contraction in 2020 caused by the health emergency. The number of files handled in relation to access to the Central Guarantee Fund remained high during the first half of 2021, slightly down on 2020.

The adjusted EBITDA increased by 12.5% compared to the same period last year to Euro 11.4 million with an EBITDA margin of 29.5% compared to 28.8% in the first half of 2020.

Innovation & Marketing Services

Adjusted revenue for the Innovation & Marketing Services segment amounted to Euro 41.7 million, up 23.6% (Euro 8.0 million) compared to the first half of 2020, 11.7% of which was attributable to organic growth and the remainder to the change in the scope of consolidation (12.0%), due to the consolidation from 1 January 2021 of Euroquality SAS, Europroject OOD, Queryo Advance S.r.l. and Trix S.r.l. The BU companies developed innovative services and products, increasing the volume of business generated through an increase in the number of files managed and the acquisition of new clients, with a resumption of internationalisation services, an increase in innovation consulting services, as well as the launch of activities related to Digital Marketing consulting.

The adjusted EBITDA of the segment amounted to Euro 17.1 million. The increase compared to EBITDA in the first half of 2020 is 14.6%. Growth due to the change in the scope of consolidation was 11.8%, organic growth amounted to 2.8%. The EBITDA margin was 41.1% compared to 44.4% in the first half of 2020.

SUMMARY OF SECOND QUARTER 2021 RESULTS

The Group closed the second quarter of 2021 with revenues of Euro 95.2 million. EBITDA amounted to Euro 23.9 million, or 25.1% of revenues. Operating profit and net profit amounted to Euro 16.9 million and Euro 13.8 million respectively, equal to 17.7% and 14.5% of revenues.

Condensed Consolidated Income Statement (€'000s)	2nd quarter 2021	%	2nd Quarter 2 2020	%	Change	Change %
Revenues	95,147	100.0%	68,906	100.0%	26,241	38.1%
EBITDA	23,919	25.1%	23,496	34.1%	423	1.8%
Adjusted EBITDA	25,293	26.6%	23,904	34.7%	1,390	5.8%
Operating Profit	16,876	17.7%	16,934	24.6%	-58	-0.3%
Net Profit	13,819	14.5%	13,045	18.9%	774	5.9%

Revenues increased by Euro 26.2 million (38.1%) compared to the second quarter of 2020, EBITDA by Euro 0.4 million (1.8%), EBIT was essentially stable (down by Euro 0.06 million, -0.3%), and Net profit increased by Euro 0.8 million (5.9%).

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

Consolidated Income Statement (€'000s)	2nd quarter 2021	%	2nd Quarter 2020	%	Change	Change %
Revenues	95,147	100.0%	68,906	100.0%	26,241	38.1%
Total Operating Costs*	70,751	74.4%	45,371	65.8%	25,380	55.9%
Costs of raw materials	2,802	2.9%	2,639	3.8%	163	6.2%
Service costs	29,558	31.1%	20,350	29.5%	9,208	45.2%
Personnel costs*	35,690	37.5%	19,966	29.0%	15,724	78.7%
Contract costs	2,154	2.3%	1,945	2.8%	209	10.8%
Other operating costs	547	0.6%	471	0.7%	76	16.2%
EBITDA before Stock Options	24,396	25.6%	23,535	34.2%	861	3.7%
Stock Option cost	476	0.5%	39	0.1%	438	1135,3%
EBITDA	23,919	25.1%	23,496	34.1%	423	1.8%
Adjusted EBITDA	25,293	26.6%	23,904	34.7%	1,390	5.8%
Amortisation and depreciation	6,500	6.8%	5,436	7.9%	1,064	19.6%
Provisions	111	0.1%	122	0.2%	-11	-9.2%
Impairment	432	0.5%	1,005	1.5%	-572	-57.0%
Operating Profit	16,876	17.7%	16,934	24.6%	-58	-0.3%
Financial income	27	0.0%	747	1.1%	-720	-96.3%
Financial charges	959	1.0%	684	1.0%	275	40.2%
Net Financial Charges	931	1.0%	-64	-0.1%	995	-1565,2%
Profit of equity-accounted investments	-180	-0.2%	77	0.1%	-257	-333.3%
Profit before tax	15,765	16.6%	17,074	24.8%	-1,309	-7.7%
Income taxes	1,945	2.0%	4,029	5.8%	-2,083	-51.7%
Net Profit	13,819	14.5%	13,045	18.9%	774	5.9%
of which minority interests	154	0.1%	184	0.1%	-30	-16.3%

Income statement for the second quarter of 2021, compared with the same period last year:

* Personnel costs are recognised net of the Stock Option cost, shown below, in order to better understand the composition of EBITDA before the Stock Options.

²Comparative figures for the second quarter of 2020 have been restated in relation to the conclusion in the fourth quarter of 2020 of the activities to identify the fair values of the assets and liabilities of PrivacyLab S.r.l., which is consolidated on a line-by-line basis from 1 January 2020.

Adjusted Group Results

Adjusted Income Statement (€'000s)	2nd quarter 2021	%	2nd Quarter 2020	%	Change	Change %
Adjusted revenues	95,147	100.0%	68,832	100.0%	26,315	38.2%
Adjusted EBITDA	25,293	26.6%	23,904	34.7%	1,390	5.8%
Adjusted operating profit	19,575	20.6%	18,835	27.4%	741	3.9%
Adjusted net profit	13,047	13.7%	12,789	18.6%	257	2.0%

Adjusted results show an increase in revenue compared to Q2 2020 of 38.2%, EBITDA of 5.8%, EBIT of 3.9% and net profit of 2.0%.

GROUP NET FINANCIAL INDEBTEDNESS

Net financial debt at 30 June 2021 amounted to Euro 205.2 million, an increase of Euro 113.4 million compared to 31 December 2020. This increase was mainly due to the acquisitions made in the first half of the year, as well as the distribution of dividends, offset by the sustained generation of operating cash flow.

Change in financial debt in the first half of 2021 compared to the first half of 2020 and the last 12 months to 30 June 2021 is shown below:

€ '000s	1st half 2021	1st half 2020	Last 12 months to 30 June 2021
Total initial financial debt	91,882	129,138	114,597
Free Cash Flow	-29,663	-28,919	-67,452
Net Financial (Income) Charges	1,794	419	2,839
Dividends approved	12,573	2,195	12,573
New leasing contracts and contract adjustments	1,564	70	2,768
Acquisitions	110,926	1,821	133,263
Disposals	0	0	-12,000
Adjustment of put options	10,662	406	11,582
Purchase of treasury shares	5,994	9,022	6,973
OCI Derivatives	-252	392	176
Other residual	-245	52	-82
Total final financial debt	205,237	114,597	205,237

Free Cash Flow generated in the first half of the year amounted to Euro 29.7 million (Euro 28.9 million in the first half of 2020): Euro 36.4 million of Net Cash Flow generated by operating activities, net of Euro 6.7 million absorbed by investments in Property, Plant and Equipment and Intangible Assets.

Dividends declared amounted to Euro 12.6 million, of which Euro 12.0 million from Tinexta S.p.A. (Euro 0.2 million not distributed) and Euro 0.6 million from Group companies to minority shareholders.

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

Details of the Acquisitions and their impact on Total Financial Debt at the date of the respective closings:

Details of NFI impacts for Acquisitions in thousands of €
Corvallis S.r.l.	56,049
Yoroi S.r.l.	38,567
Queryo Advance S.r.l.	15,744
Investments accounted for using the equity method	566

Total 110,926

The Put option adjustment amounted to Euro 10.7 million due to the increase in the expected results of the companies concerned, as well as the revaluation due to the passage of time.

During the year, the parent company Tinexta S.p.A. purchased 254,133 treasury shares (equal to 0.538% of the share capital), for a purchase price of Euro 6.0 million.

FORESEEABLE OUTLOOK FOR OPERATIONS

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

* * * * *

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

* * * * *

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

CONFERENCE CALL

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

* * * * *

Attached: Statements as at 30 June 2021 of the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Group Total Debt and Consolidated Cash Flow Statement.

TINEXTA S.p.A.

Tinexta, listed on the STAR segment of the Milan Stock Exchange, reported the following consolidated results as of 31 December 2020: revenues of Euro 269.1 million, EBITDA of Euro 77.9 million and net profit of Euro 37.9 million. Tinexta Group is one of Italy's leading operators in itsfour business areas: Digital Trust, Cyber Security, Credit Information & Management, Innovation & Marketing Services. The Digital Trust Business Unit provides, through the companiesInfoCert S.p.A., Visura S.p.A., Sixtema S.p.A. and the Spanish company Camerfirma S.A., products and services for digitisation, electronic invoicing and certified e-mail (PEC) for large companies, banks, insurance and financial companies, SMEs, associations and professionals. The Cyber Security Business Unit operates through

the companies Yoroi, Swascan and Corvallis and constitutes one of the national poles in the research and provision of the most advanced solutions for data protection and security. In the Credit Information & Management Business Unit, Innolva S.p.A. and its subsidiaries offer services to support decision-making processes (Chamber of Commerce and real estate information, aggregated reports, synthetic ratings, decision-making models, credit assessment and recovery) while RE Valuta offers real estate services (appraisals and evaluations). In the Innovation & Marketing Services Business Unit, Warrant Hub S.p.A. is a leader in consultancy in grants, loans and tax relief as well asindustrial innovation, while Co.Mark S.p.A. provides Temporary Export Management consultancy to SMEs to support them in their commercial expansion. As of 31 December 2020, the Group had 1,403 employees.

Website: www.tinexta.com, Stock ticker: TNXT, ISIN Code IT0005037210

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

Consolidated Statement of Profit or Loss and Other Comprehensive Income

		Six months ended 30 June
€ '000s	2021	20203
Revenues	177,813	123,817
- of which vs related parties	100	78
- of which non-recurring	0	74
Costs of raw materials	5,970	4,515
Service costs	56,111	39,905
- of which vs related parties	1,032	802
- of which non-recurring	1,115	526
Personnel costs	70,453	40,239
Contract costs	4,050	3,831
Other operating costs	958	915
- of which vs related parties	1	1
Amortisation and depreciation	12,754	10,598
Provisions	444	360
Impairment	670	1,878
Total Costs	151,410	102,241
OPERATING PROFIT	26,403	21,576
Financial income	83	951
- of which non-recurring	0	710
Financial charges	1,877	1,370
- of which vs related parties	26	22
Net financial income (charges)	-1,794	-419
Share of profit of equity-accounted investments, net of tax	-180	91
PROFIT BEFORE TAX	24,429	21,248
Income taxes	3,787	5,312
- of which non-recurring	-4,317	-1,018
NET PROFIT FROM CONTINUING OPERATIONS	20,641	15,936
Profit (loss) from discontinued operations	0	0
NET PROFIT	20,641	15,936
Other components of the comprehensive income statement
Components that will never be reclassified to profit or loss
Total components that will never be reclassified to profit or loss	0	0
Components that are or may be later reclassified to profit or loss:
Exchange rate differences from the translation of foreign financial statements Profits (losses) from measurement at fair value of derivative financial	-17	-21
instruments	252	-392
Equity-accounted investments - share of Other components of the	-15	-5
comprehensive Income Statement
Tax effect	-60	94
Total components that may be later reclassified to net profit	160	-324
Total other components of comprehensive income for the period, net of tax	160	-324
Total comprehensive income for the period	20,801	15,612
Net profit attributable to:
Group	20,361	15,735
third	281	201
Total comprehensive income for the period attributable to:
Group	20,532	15,427
third	270	186
Earnings per share
Basic earnings per share (€)	0.44	0.33

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

Consolidated Statement of Financial Position

€ '000s	30/06/2021	31/12/2020
ASSETS
Property, plant and equipment	23,350	18,990
Intangible assets and goodwill	390,828	285,106
Investment property	711	724
Equity-accounted investments	6,252	5,880
Other investments	93	22
Other financial assets, excluding derivative financial instruments	909	1,246
Deferred tax assets	8,623	6,041
Trade and other receivables	3,758	2,517
Contract cost assets	5,679	5,275
NON-CURRENT ASSETS	440,202	325,799
Inventories	1,070	1,154
Other financial assets, excluding derivative financial instruments	2,850	7,320
Current tax assets	1,588	311
- of which vs related parties	0	6
Trade and other receivables	95,613	84,110
- of which vs related parties	438	48
Contract assets	19,691	9,231
Contract cost assets	1,164	1,206
Cash and cash equivalents	95,002	92,813
CURRENT ASSETS	216,978	196,146
TOTAL ASSETS	657,179	521,945
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital	47,207	47,207
Treasury shares	-15,995	-10,001
Share premium reserve	55,439	55,439
Other reserves	76,000	77,189
Shareholders' equity attributable to the Group	162,651	169,834
Minority interests	3,702	4,047
TOTAL SHAREHOLDERS' EQUITY	166,353	173,881
LIABILITIES
Provisions	3,721	3,471
Employee benefits	17,759	12,792
Financial liabilities, excluding derivative financial instruments	247,601	150,508
- of which vs related parties	1,334	2,269
Derivative financial instruments	890	1,142
Deferred tax liabilities	11,416	14,279
Contract liabilities	15,824	10,961
- of which vs related parties	40	0
Deferred income	6	4
NON-CURRENT LIABILITIES	297,217	193,156
Provisions	498	752
Employee benefits	0	131
Financial liabilities, excluding derivative financial instruments	54,598	40,365
- of which vs related parties	1,212	1,248
Trade and other payables	79,949	60,249
- of which vs related parties	368	280
Contract liabilities	54,776	46,411
- of which vs related parties	75	0
Deferred income	2,124	1,854
Current tax liabilities	1,665	5,147
CURRENT LIABILITIES	193,609	154,908
TOTAL LIABILITIES	490,826	348,064

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	657,179	521,945
Consolidated Statement of Cash Flows
Number of thousands in Euro	six-month period ended 30 June
	Notes 2021	2020
Cash flows from operations
Net Profit	20,641	15,936
Adjustments for:
- Amortisation and depreciation	12,754	10,598
- Impairment (Revaluations)	670	1,878
- Provisions	444	360
- Provisions for Stock Options	903	39
- Net financial charges	1,794	419
- of which vs. related parties	26	22
- Share of profit of equity-accounted investments	180	-91
- Income taxes	3,787	5,312
Changes in:
- Inventories	85	-53
- Contract cost assets	-362	352
- Trade and other receivables and Contract assets	5,925	1,843
- of which vs. related parties	-390	121
- Trade and other payables	-695	-3,778
- of which vs. related parties	88	88
- Provisions and employee benefits	-23	345
- Contract liabilities and deferred income. including public contributions	4,293	6,435
- of which vs. related parties	115	-9
Cash and cash equivalents generated by operations	50,396	39,594
Income taxes paid	-13,990	-5,223
Net cash and cash equivalents generated by operations	36,405	34,371
Cash flows from investments
Interest collected	7	22
Collections from sale or repayment of financial assets	4,868	210
Investments in shareholdings consolidated using the equity method	-566	0
Investments in property, plant and equipment	-662	-563
Investments in other financial assets	-72	-233
Investments in intangible assets	-6,081	-4,889
Increases in the scope of consolidation, net of liquidity acquired	-47,426	-452
Net cash and cash equivalents generated/(absorbed) by investing activities Cash flows from financing	-49,932	-5,905
Purchase of Minority interests in subsidiaries	-3	-2,400
Interest paid	-1,177	-1,082
- of which vs. related parties	-31	-22
MLT bank loans taken out	62,605	10,035
Repayment of MLT bank loans	-13,088	-6,718
Repayment of price deferment liabilities on acquisitions of equity investments	-2,602	-2,548
- of which vs. related parties	-665	0
Repayment of contingent consideration liabilities	-1,616	-7,581
Change in other current bank payables	-7,384	-2,673
Change in other financial payables	296	169
Repayment of lease liabilities	-2,813	-1,891
- of which vs. related parties	-293	-286
Purchase of treasury shares	-5,994	-9,022
Capital increases (decreases) in subsidiaries	-91	0
Dividends paid	-12,416	-2,195
Net cash and cash equivalents generated/(absorbed) by financing activities	15,716	-25,905
Net increase (decrease) in cash and cash equivalents	2,189	2,561
Cash and cash equivalents at 1 January	92,813	33,600
Cash and cash equivalents at 30 June	95,002	36,161

€ '000s	30/06 2021	31/12 2020	Change	%	30/06 2020	Change	%
A Cash and cash equivalents	95,002	92,813	2,189	2.4%	36,161	58,841	162.7%
B Cash and cash equivalents	0	0	0	n.a.	0	0	n.a.
C Other current financial assets	2,850	7,320	-4,469	-61.1%	6,622	-3,772	-57.0%
D Cash and cash equivalents (A+B+C)	97,852	100,132	-2,280	-2.3%	42,784	55,069	128.7%
E Current financial debt	13,595	8,106	5,489	67.7%	18,523	-4,928	-26.6%
F Current share of non-current financial debt	41,003	32,258	8,745	27.1%	24,585	16,419	66.8%
G Current financial debt (E+F)	54,598	40,365	14,234	35.3%	43,108	11,490	26.7%
H Net current financial debt (G-D)	-43,254	-59,768	16,514	-27.6%	324	-43,578	-13443,4%
I Non-current financial debt	248,491	151,650	96,842	63.9%	114,273	134,218	117.5%
J Debt instruments	0	0	0	n.a.	0	0	n.a.
K Trade payables and other non-current payables	0	0	0	n.a.	0	0	n.a.
L Non-current financial debt (I+J+K)	248,491	151,650	96,842	63.9%	114,273	134,218	117.5%
M Total financial debt (H+L) (*)	205,237	91,882	113,355	123.4%	114,597	90,640	79.1%
N Other non-current financial assets	909	1,246	-337	-27.1%	1,181	-272	-23.1%
O Total adjusted financial debt (M-N)	204,328	90,636	113,692	125.4%	113,416	90,912	80.2%

(*) Total financial indebtedness determined in accordance with Consob Communication no. 6064293 of 28 July 2006 and in compliance with the warning notice no. 5/21 issued by Consob on 29 April 2021 with reference to ESMA Guideline 32-382-1138 of 4 March 2021