Wiit

Earnings Release • Aug 1, 2024

Informazione Regolamentata n. 20101-61-2024	Data/Ora Inizio Diffusione 1 Agosto 2024 14:24:56		Euronext Star Milan
Societa'	:	WIIT
Identificativo Informazione Regolamentata	:	194165
Utenza - Referente	:	WIITNSS01 - PASOTTO
Tipologia	:	1.2
Data/Ora Ricezione	:	1 Agosto 2024 14:24:56
Data/Ora Inizio Diffusione	:	1 Agosto 2024 14:24:56
Oggetto	:	WIIT_PR_H1 2024 Results
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PRESS RELEASE

The Board of Directors of WIIT S.p.A. approves the consolidated results as at 30 June 20241

Adjusted Revenues at Euro 72.7 million, +13.4% vs H1 2023 (Euro 64.2 million) driven in particular by organic growth in Germany and Italy and the contribution of the newly acquired companies Edge&Cloud and Econis

Group recurring revenues at 92.0% of the total, of which 82.5% in Italy, 98% in Germany and 86% in Switzerland2

Core revenue3 at Euro 63.0 million +15.2% vs H1 2023 (Euro 29.2 million in Italy, Euro 30.8 million in Germany and Euro 2.9 in Switzerland)

Adjusted EBITDA at Euro 26.7 million, +9.6% vs H1 2023 (Euro 24.3 million) Margin on Group revenues at 36.7% (37.9% in 1H 2023), impacted by recent acquisitions whose cost synergies will be realised over the next 18 months Like-for-like margin would have been 39.8% up 190 bps vs 1H 2023

Progressively improving Q/Q margin in Italy to 46.7% in Q2 vs 44,3% in Q1 2024

Adjusted EBIT at Euro 13.9 million, +3.74% vs H1 2023 (Euro 13.4 million), at 18.6% (20.9% in H1 2023) impacted by recent acquisitions Like for like margin would have been at 21.4%, up 50 bps vs 1H 2023

Adjusted Net Profit at Euro 7.3 million, +10.0% vs H1 2023 (Euro 6.7 million) Reported Net Profit at Euro 6.5 million, +70.3% vs 1H 2023 (Euro 3.8 million)

The development of the Commercial Pipeline in Italy and in Germany continues in the Manufacturing, Digital Media, ISV and CPG sectors where the Group is increasing its own market share to support future development

¹ For the definitions of the alternative performance indicators used (including EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT, Net Financial Position/Net Debt, Adjusted Net Financial Debt and Adjusted Net Profit), please refer to the section "Alternative Performance Indicators" at the end of this press release.

² Italy (WIIT S.p.A.), Germany (WIIT AG excluding Gecko), Switzerland (Econis AG)

³ Core revenue refers to companies operating in the Cloud and Cyber Security market, excluding the consulting company Gecko.

Milan, 1 August 2024 – The Board of Directors of WIIT S.p.A. ("WIIT" or the "Company"; ISIN IT0005440893; WIIT.MI), one of the leading European players in the market of Cloud Computing services for enterprises focused on the provision of continuous Hybrid Cloud and Hosted Private Cloud services for critical applications, met today and approved the consolidated results at 30 June 2024 - prepared in accordance with IFRS international accounting standards - of the group headed by WIIT (the "WIIT Group" or the "Group").

* * *

"The results for the first half of the year are in line with our expectations in both Italy and Germany. We have completed the merger of the German companies and identified cost synergies that will be consolidated in 2025 and those in Switzerland, that we expect to be realized in the next 18 months. The commercial pipeline, particularly in Germany, makes us optimistic for 2H 2024 and 2025. We also have an open discussion on the extension of a current contract with one of the world's leading gaming platforms for the Italian market, concerning the use of GPU technologies, applicable to both the gaming and AI markets". Commented Alessandro Cozzi, CEO of WIIT."Finally, given the expected strong growth of the AI and gaming market, we are planning to create a dedicated Datacenter to host GPU technologies to support this sector".

* * *

At 30 June 2024, the WIIT Group recorded:

Consolidated adjusted Revenues: Euro 72.7 million (Euro 64.2 million as at 30 June 2023, +13.4%);

Consolidated adjusted EBITDA: Euro 26.7 million (Euro 24.3 million as at 30 June 2023, +9.6%) margin on revenue at 36.7% (37.9% in H1 2023);

Consolidated adjusted EBIT: Euro 13.9million (Euro 13.4 million as at 30 june 2024, +3.74%) margin on revenue at 18.6% (20.9% in H1 2023);

Adjusted Net Profit: Euro 7.3 million (Euro 6.7 million as at 30 June 2023, +10.0%);

Adjusted Net Financial Position (debt): Euro -163.9 million4 (Euro -154.2 million as at 31 December 2023), including the earnout for Euro 4.0 million related to Edge&Cloud acquisition.

WIIT Group financial review as at 30 June 2024

Adjusted Revenues amounting to Euro 72.7 million (Euro 29.8 million in Italy, Euro 39.5 million in Germany and Euro 3.4 million in Switzerland), an increase of +13.4% compared to Euro 64.2 million in the same period last year. The increase is driven by organic growth of +5.2%, characterised by the development of higher value-added services, increasing cross-selling to customers of the acquired companies and the entry of new customers, of which in Italy approx. +5.3% (core revenue growth was +7.6%) compared to the same period of the previous year, and in

⁴ Excluding the IFRS16 effect of Euro 11.6 million (Euro 10.6 million in 2023) and including the valuation of treasury shares in portfolio quantified at approximately Euro 44.4 million at market value as of 30 June 2024 (market value as of 31 December 2023 Euro 37.5 million).

Germany approx. +5.2% (core revenue growth was +4.4%) and the contribution of the acquired companies of which: EDGE&Cloud in Germany, consolidated from 1 April 2024 for Euro 2.1 million (100% core revenue) and Econis in Switzerland, consolidated from 1 May 2024 for Euro 3.4 million (86% core revenue).

The adjustment carried out at the level of Revenues as at 30 June 2024 refers to the amount of Euro 1.8 million relating to the negative goodwill component (bargain purchase) obtained from the difference between the price paid for the acquisition of Econis, and the value of the acquiree's assets, which is lower than the price paid.

• Adjusted operating costs amounting to approximately Euro 24.2 million, show an increase of Euro 1.9 million compared to 1H 2023, mainly attributable to the consolidation of the companies acquired in Germany and Switzerland, only partially offset by the cost synergies achieved through the mergers in Italy and Germany. The effect of the cost synergies related to the new acquisitions will be reflected in the numbers over the coming 18 months.
• Adjusted personnel costs amounting to approximately Euro 21.6 million, showing an increase of Euro 5.0 million compared to the same period of the previous year. This change is mainly attributable to the development of the business, already starting in the second half of 2023, investments in the corporate and commercial structure, as well as the effect of the new acquisitions
• Consolidated Adjusted EBITDA amounting to Euro 26.7 million (Euro 24.3 million in 1H 2023), +9.6% compared to the same period of the previous year, thanks to the concentration in Cloud services, the level of optimisation achieved in the organisation of operational processes and services, cost synergies and the continued margin improvement of the acquired companies. Margin on Revenues at 36.7% (37.9% in 1H 2023) impacted by the dilutive effect of the consolidation of Edge&Cloud and Econis, whose expected synergies will be seen in the next 18 months. Like-for-like margin would have been 39.8% up 190 bps vs 1H 2023.

As of 30 June 2024, the WIIT Group's margin in Italy was 45.5% (43.0% in 1H 2023), continuously improving quarter on quarter and in Germany 33.4% (WIIT AG exc. Gecko 34.9%). The like for like margin (excluding Edge&Cloud) in Germany is 35.3% (33.8% in 1H 2023) and that of WIIT AG exc. Gecko is 37.2% (36.2% in 1H 2023).

The adjustment carried out at the level of Gross Operating Margin (EBITDA) as of 30 June 2024 refers to the effects deriving from the extraordinary M&A transactions in the amount of Euro 0.5 million, costs related to incentive plans based on financial instruments in the amount of Euro 0.36 million, and personnel reorganisation costs

in the amount of approximately Euro 0.15 million. Lastly, the amount of Euro 1.8 million relative to the negative goodwill component (bargain purchase) obtained from the difference between the price paid for the acquisition of Econis, and the value of the acquired company's assets, which is lower than the price paid, was excluded. The latter amount is recognised in the balance sheet under other operating revenues and income.

Consolidated Adjusted EBIT (Net Operating Margin)	amounting to Euro 13.9 million compared to Euro 13.4 million recorded in H1 2023 (+3.74%), representing 19.1% of revenues (20.9% in H1 2024). Like for like margin would have been at 21.4%, up 50 bps vs 1H 2023. The value of amortisation, depreciation and impairment stood at approximately Euro 12.8 million, up by Euro 1.8 million compared to the previous year, and reflects the investments made and the effect of the companies acquired in 2024.
	The adjustment carried out at the level of EBIT as of 30 June 2024 refers to the above-mentioned adjustments to EBITDA and the value of amortisation related to the PPA (so-called 'Purchase Price Allocation') concerning acquisitions in the amount of Euro 2.4 million.
Financial expenses	amounting to euro 4.1 million, mainly attributable to the effect of interest on bonds in the amount of Euro 2.6 million and financial expenses for bank loans and other lenders. The year-on-year increase was due to loans disbursed in the second half of 2023 and new loans taken out in 2024.

Adjusted Net Profit amounting to Euro 7.3 million compared to Euro 6.7 million as at 30 June 2023 (+10.0%), including the tax effect calculated on adjustments at the consolidated operating result level.

WIIT Group financial and equity review as at 30 June 2024

Net financial position (debt) amounting to Euro -219.9 million at 30 June 2024 (Euro -202.2 million at 31 December 2023), considering the IFRS16 impact of approximately Euro 11.6 million (Euro 10.6 million at 31 December 2023), including the earnout related to Edge&Cloud acquisition for Euro 4.0 million and excluding the valuation of treasury shares in portfolio quantified at approximately Euro 44.4 million at market value as of 30 June 2024 (market value as at 31 December 2023 of Euro 37.5 million).

This change includes in particular:

• M&A for a total of Euro 7.8 million of which: Euro 4.0 million earnout related to Edge&Coud (which will be recognised by WIIT upon achievement of targets defined during the acquisition) Euro 2.5 million paid for Edge&Cloud and Euro 1.3 million paid for Econis in Switzerland;
• the purchase of treasury shares for Euro 0.4 million

• CAPEX of about Euro 17.2 million related to the purchase of IT infrastructures for new contracts stipulated both in Italy and abroad (in particular for the renewal of a five-year contract for about €3.5 million) and investments for rights of use for about Euro 2.9 million (IFRS16 leases and cars).
• dividends paid in the amount of Euro 7.8 million;

During H1 2024, cash flows from operating activities of Euro 17.4 million were recorded. Cash and cash equivalents as at 30 June 2024 amounted to Euro 19.7 million, a difference of Euro +6.0 million compared to 31 December 2023.

The value does not include the valuation of treasury shares in the portfolio quantified at about Euro 44.4 million at the market value of 30 June 2024 (Euro 15.94 per share).

* * *

Significant events in H1 2024

On 18 January 2024, WIIT obtained a loan of Euro 10 million, backed by SACE's Green Guarantee. The intervention is part of Intesa Sanpaolo's more extensive plan to support corporate investments in environmental transition and NRRP-related objectives. The proceeds of the funding are intended to support the pursuit of the Environmental Goals (WIIT4Climate), specifically for the purchase of new servers, storage and software. The exponential increase in digital traffic volumes is in fact forcing ICT companies to adopt energy-efficient solutions and to move towards the production and procurement of energy from renewable sources. In line with this need, cloud providers and data centre companies are looking for innovative technology solutions to reduce business energy consumption.

On 19 January 2024, WIIT announced, pursuant to Article 2-ter, paragraph 2, of Consob Regulation No. 11971/1999, that it no longer qualifies as a "Small and Medium Enterprise" ("SME") pursuant to Article 1, paragraph 1, letter w-quater.1), of Legislative Decree No. 58/1998 as of 1 January 2024, having exceeded the market capitalisation threshold of Euro 500.0 million for three consecutive years (2021, 2022 and 2023).

On 24 January 2024, WIIT AG, a full subsidiary of WIIT, signed an agreement to acquire the business unit called 'Edge & Cloud' with the German company German Edge Cloud GmbH & Co. KG, belonging to the Fridhelm Loh Group. The acquisition agreement provides for the payment of a base amount of Euro 2.5 million, at the closing of the transaction, and earn-out components up to a maximum aggregate amount of Euro 4 million, payable upon the achievement of certain revenue-based targets.

On 26 March 2024, the Group announced that an agreement was signed by WIIT to acquire 100% of Econis AG.

Econis AG, a Zurich-based company, is a Managed Services Provider that provides design, implementation and management services of Private Cloud infrastructures for the worlds of Banking, Health Care and Manufacturing in the German-speaking part of Switzerland. The services offered can be summarised as follows: (i) Managed services: Recursive services for the management of private cloud infrastructures at the customer's own or on the customer's infrastructure; (ii) Consultancy: IT infrastructure consulting services, including Cyber Security, mainly provided to new customers as a key to Managed Services; (iii) HW/SW trading: Resale of cloud infrastructures during the activation phase of the relationship with new customers or for the renewal of existing customers' infrastructures.

On 2 April 2024, the acquisition was finalised of the business unit Edge & Cloud through the subsidiary WIIT AG. With this acquisition, the Group expanded its presence in the strategic Frankfurt area, with the acquisition of a portfolio of 40 loyal customers, as well as strengthening the team in Germany with the entry of new, highly qualified professionals.

On 12 April 2024, the deed of merger between the companies Lansol, Global Access, myloc Managed IT and Boreus (jointly, the "Merging Companies") into WIIT AG was registered at the competent offices, having statutory effect as of 15 April 2024, while the accounting and tax effects are effective as of 1 January 2024. The integration of the subsidiaries is an important step in our Cloud4Europe project, which aims to position the WIIT Group as the European leader in cloud for critical applications and infrastructure. This underlines our commitment to the German market and our ambition to offer our customers excellent WIIT-branded cloud services. The merger will make it possible to concentrate, in the Company WIIT AG, the activities previously carried out via the Merging Companies. More generally, the purpose of the merger transaction was to optimise the coordination, operation and synergies of the structures headed by the merging companies, as well as to reduce the fixed structural costs deriving from the existence of separate legal entities, with consequent advantages in terms of functionality and operational and economic efficiency, thus allowing the WIIT Group to strengthen its position as a leading European player in the sectors in which it operates.

On 30 April 2024, the acquisition was finalised of 100% of the company Econis AG. The price paid was CHF 0.77 million.

On 15 May 2024, WIIT announced the signing of a new 5-year contract for a total value of over Euro 7.0 million, with a major Italian company operating in the medical sector. The customer will rely on WIIT for the next 5 years, a partner chosen for the high reliability of its services, consolidated over time thanks to many years of experience in the Cloud and critical applications sector. The solutions offered by WIIT, characterised by specific and customisable functionalities, are decisive in guaranteeing a level of security in line with the strictest standards required in the medical sector. The Customer's critical applications, including the SAP platform, which are crucial in guaranteeing the management and confidentiality of sensitive data, will be managed and hosted in high reliability in the Premium Zone Italy North-West.

On 16 May 2024, the Shareholders' Meeting of WIIT S.p.A. appointed the Board of Directors for the three-year period 2024- 2026 and set the number of members at 9. The following were elected as members of the Board of Directors

• Enrico Giacomelli, as Chairman of the Board of Directors;
• Alessandro Cozzi;
• Francesco Baroncelli;
• Enrico Rampin;
• Chiara Grossi;
• Annamaria Di Ruscio;
• Emanuela Teresa Basso Petrino;
• Nathalie Brazzelli;
• Santino Saguto.

All directors, with the exception of the director Santino Saguto, were taken from the list presented by the shareholder WIIT Fin S.r.l., holder of no. 15,470,292 ordinary shares of the Company, equal to about 55.21% of WIIT's share capital ('WIIT Fin'), which received favourable votes equal to 70.1% of the total voting rights and 89.3% of the total voting rights present, while director Santino Saguto was drawn from the list submitted by shareholders' funds, holding, in total, no. 1,131,977 ordinary shares of the Company, equal to about 4.04% of WIIT's share capital (the 'Shareholder Funds'), which received

favourable votes equal to 8.4% of the total voting rights and 10.7% of the total voting rights present. The directors Enrico Giacomelli, Annamaria Di Ruscio, Emanuela Teresa Basso Petrino, Nathalie Brazzelli and Santino Saguto certified that they meet the independence requirements set forth in Article 148, paragraph 3, of the Consolidated Law on Finance and the Corporate Governance Code.

At the same time, the Shareholders' Meeting of WIIT S.p.A. appointed the Board of Statutory Auditors for the three-year period 2024-2026. The following were elected as members of the Board of Statutory Auditors

• Vieri Chimenti; as standing auditor and chairman of the Board of Statutory Auditors;

• Paolo Ripamonti; as standing auditor;

• Chiara Olliveri Siccardi, as standing auditor;
• Igor Parisi, as alternate auditor;
• Cristina Chiantia, as alternate auditor.

The auditors Paolo Ripamonti, Chiara Olliveri Siccardi and Igor Parisi were taken from the list presented by WIIT Fin, which received favourable votes equal to 70.1% of the total voting rights and 89.3% of the total voting rights present, while the auditors Vieri Chimenti and Cristina Chiantia were taken from the list presented by the Shareholders' Funds, which received favourable votes equal to 8.4% of the total voting rights and 10.7% of the total voting rights present.

The Shareholders' Meeting of WIIT S.p.A. also approved, pursuant to Article 114-bis of the Consolidated Law on Finance, a long-term monetary incentive plan called the "2024-2026 Monetary Incentive Plan", insofar as it is also based on the performance of WIIT shares (the "LTI Plan"). This plan - intended for WIIT's executive directors to be identified by WIIT's Board of Directors upon the proposal of the Appointments and Remuneration Committee - intends to pursue the following objectives (i) to link the remuneration of WIIT's key resources to the Group's actual economic performance and the creation of value for the same (ii) to orient the Company's key resources towards strategies for the pursuit of medium-long term results; (iii) to align the interests of the Company's key resources with those of the shareholders; (iv) to apply retention policies aimed at retaining key resources and providing incentives for them to remain with the Company.

The Shareholders' Meeting approved the amendment of the bylaws (Article 7) in order to allow for the enhancement of the Augmented Vote system pursuant to Article 127-quinquies of the Consolidated Law on Finance as replaced by Article 14, paragraph 2, of Law No. 21 of 5 March 2024. In particular, the amendment to the by-laws allows the so-called loyalty shareholders who have accrued the right to the 2-vote enhancement for each share held uninterruptedly for a period of 24 months to be granted 1 additional vote upon the expiry of each 12-month period of uninterrupted holding, up to a total maximum of 10 votes per share, on the assumption that the shareholder has maintained the relevant requirements during the period of accrual of the additional voting rights.

Significant events occurring after 30 June 2024

On 19 July 2024, WIIT announced, with reference to the approval by the Extraordinary Shareholders' Meeting of the proposal to amend the articles of association to introduce the enhanced enhanced voting right, that during the period for the exercise of the right of withdrawal, between 21 June 2024 and 6 July 2024 (inclusive), no shareholders exercised their right of withdrawal. As is well known, the effectiveness of the resolution on the proposal to amend the bylaws to introduce the increased voting rights would have been terminated if the cash amount that WIIT might have to pay to the withdrawing shareholders for the purchase of the Withdrawal Shares had exceeded a total of Euro 5.0 million. Since the aforementioned termination condition has not been fulfilled, the resolution of the shareholders'

meeting is definitively effective and the increased voting power approved by the shareholders' meeting can be considered fully implemented in the Articles of Association.

On 24 July 2024, the sale of 51% of the Polish subsidiary Codefit Sp.z.o.o. was finalised for Euro 0.25 million.

On 31 July 2024, WIIT announced the renewal of the four-year contract for Secure Cloud services, for a total value of approximately Euro 4.7 million, with a leading Italian company (the 'Customer') part of a major international group, a leading operator in the B2B distribution of electrical equipment, solutions and services. The Customer has chosen to continue its long-standing collaboration with WIIT, confirming the solidity of the relationship by extending services to the new multi-region Secure Cloud model that integrates managed services, processes, security and technologies. This model, included in WIIT's offer, will further enhance the flexibility, scalability and security of the services already available to the customer.

* * *

Business outlook

Thanks to the positive development of the commercial pipeline characterised by the acquisition of new customers and the renewal of multi-year contracts, the WIIT Group expects a year 2024 registering a growth and in line with market expectations. The focus remains on improving the EBITDA margin thanks to the growth in core revenues and value-added services, the level of optimisation achieved in the organisation of processes and operating services, cost synergies and the continuous improvement in the margin as a result of the mergers of the German subsidiaries into WIIT AG. The process of integrating the new Swiss subsidiary Econis with the Group's policies began immediately, the effects of which in terms of realised synergies will be seen in the next 18 months. Finally, M&A scouting in the 'D-A-CH zone' continues, in line with the growth strategy, and the German market continues to represent a significant opportunity for the Group's expansion in Europe.

As at 30 June 2024, the WIIT Group had marginal exposure to the Russian, Ukrainian and Israeli markets. The Directors do not believe that any risks could arise from these business relationships either directly or indirectly, despite the fact that the Russian-Ukrainian and Israeli conflicts have and are generally exacerbating the cost of raw materials.

* * *

Declaration pursuant to article 154-bis, paragraph 2 of Legislative Decree no. 58/1998.

The Manager in charge of drawing up the corporate accounting documents, Mr. Stefano Pasotto, hereby declares, pursuant to article 154-bis, paragraph two of Legislative Decree no. 58/1998, that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

* * *

Attached are the WIIT Group's consolidated financial statements as of 30 June 2024. With reference to the figures presented in this press release, it should be noted that these are figures for which the statutory auditing activities have not yet been completed, nor have they been verified by the Board of Statutory Auditors. The half-yearly report as of 30 June 2024 will be made available to the public at the Company's registered office and on the Company's website (http://www.wiit.cloud/), in the

"Investors - Reports and Presentations" section, as well as at the authorised storage mechanism "eMarket STORAGE" ().

* * *

This press release contains forecasts and estimates that reflect the current views of the Group's management regarding future and uncertain events. Forecasts and estimates are typically identified by expressions such as "it is possible," "it should be," "it is forecast," "it is expected," "it is estimated," "it is believed," "it is intended," "it is planned," "objective" or by the negative use of these expressions or other variations of these expressions or by the use of comparable terminology. These forecasts and estimates include, but are not limited to, all information other than factual information, including, without limitation, that relating to the Group's future financial position and operating results, strategy, plans, objectives and future developments in the markets in which the Group operates or intends to operate. As a result of such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking information as a prediction of actual results. The Group's ability to achieve its expected results depends on many factors beyond management's control. Actual results may differ significantly from (and be more negative than) those predicted or implied by the forecast data. These forecasts and estimates involve risks and uncertainties that could have a material impact on expected results and are based on basic assumptions. The forecasts and estimates made therein are based on information available to the Group as of today. The Group does not undertake any obligation to publicly update and revise forecasts and estimates as a result of the availability of new information, future events or otherwise, except in the cases envisaged by the law.

* * *

WIIT S.p.A.

WIIT S.p.A., a company listed on the Euronext Star Milan segment ('STAR'), is a leader in the Cloud Computing market. Through a pan-European footprint, it is present in key markets such as Italy, Germany and Switzerland, positioning itself among the leading players in the provision of innovative Hosted Private and Hybrid Cloud technology solutions. WIIT operates through managed processes, specialised resources and technological assets including its own datacentres distributed in 7 regions: 4 in Germany, 1 in Switzerland and 2 in Italy, 2 of which are Premium Zone enabled, i.e. with Tier IV certified datacentres by the Uptime Institute and the highest levels of security by design. WIIT has 6 SAP certifications at the highest level of specialisation. The end-to-end approach allows the provision to partner companies of customised services with high added value, with extremely high standards of security and quality, for the management of critical applications and business continuity, as well as guaranteeing maximum reliability in the management of the main international application platforms (SAP, Oracle and Microsoft). Since 2022, the WIIT Group has adhered to the UN Global Compact. (www.wiit.cloud).

For more information:

Investor Relations WIIT S.p.A.:

Stefano Pasotto – CFO & Investor Relations Director Francesca Cocco – Lerxi Consulting – Investor Relations T +39.02.3660.7500 Fax +39.02.3660.7505 ir@wiit.cloud www.wiit.cloud

Media Relations:

Image Building T +39 02 89011300 wiit@imagebuilding.it

It should be noted that the data in the tables shown hereunder were prepared in compliance with the international accounting standards (IAS/IFRS).

CONSOLIDATED BALANCE SHEET

	30.06.2024	31.12.2023
ASSETS
Intangible assets	58.682.504	58.224.012
Goodwill	121.103.831	121.077.831
Rights of use	12.942.869	11.870.441
Property, plant and equipment	9.049.459	8.737.760
Other tangible assets	60.298.077	46.250.182
Deferred tax assets	1.708.672	1.724.090
Equity investments	5	5
Non-current contract assets	24.356	24.356
Other non-current assets	505.309	686.944
NON-CURRENT ASSETS	264.315.082	248.595.622
Inventories	260.392	166.980
Trade receivables	38.672.685	25.842.136
Current financial assets	0	11.602.736
Current assets deriving from contracts	1.061.434	0
Other receivables and other current assets	16.561.166	9.195.557
Cash and cash equivalents	19.709.163	13.690.212
CURRENT ASSETS	76.264.841	60.497.621
TOTAL ASSETS	340.579.923	309.093.243

CONSOLIDATED BALANCE SHEET

	30.06.2024	31.12.2023
SHAREHOLDERS' EQUITY AND LIABILITIES
Share Capital	2.802.066	2.802.066
Share premium reserve	44.598.704	44.598.704
Legal reserve	560.413	560.413
Other reserves	4.829.555	5.576.744
Treasury shares	(30.726.592)	(30.566.915)
Reserves and retained earnings (accumulated losses)	2.996.239	1.074.273
Translation reserve	25.713	22.610
Net profit for the period	6.488.452	8.285.649
SHAREHOLDERS' EQUITY	31.574.549	32.353.545
	31.282	60.982
	226.319	195.037
SHAREHOLDERS' EQUITY	31.800.870	32.548.583
Payables to other lenders	19.232.246	13.289.335
Non-current financial indebtedness related to Bond facilities	155.978.861	157.442.669
Bank loans	28.064.140	27.805.467
Other non-current financial liabilities	4.926	331.938
Employee benefits	3.293.765	3.042.572
Provisions for risks and charges	570.287	567.886
Deferred tax liabilities	13.893.513	14.779.476
Non-current contract liabilities	108.356	109.882
Other payables and non-current liabilities	121.515	60.566
NON-CURRENT LIABILITIES	221.267.612	217.429.793
Payables to other lenders	10.589.403	7.695.550
Current financial indebtedness related to Bond facilities Current bank loans	8.760.607 13.686.307	7.897.960 12.120.143
Current income tax liabilities	4.472.079	2.857.006
Other current financial liabilities	4.326.965	948.035
Trade payables	33.381.112	18.294.275
Current contract liabilities	0	0
Other payables and current liabilities	6.138.496	3.492.306
Payables to other lenders	6.156.473	5.809.591
CURRENT LIABILITIES	87.511.442	59.114.866
TOTAL LIABILITIES	308.779.054	276.544.659
TOTAL LIABILITIES & SHARE. EQUITY
	340.579.923	309.093.243

CONSOLIDATED INCOME STATEMENT

			Adjusted	Adjusted
	30.06.2024	30.06.2023	30.06.2024	30.06.2023
REVENUES AND OPERATING INCOME
Revenues from sales and services	72.008.326	63.738.159	72.008.326	63.738.159
Other revenues and income	2.568.151	412.687	741.611	412.687
Total revenues and operating income	74.576.478	64.150.846	72.749.937	64.150.846
OPERATING COSTS
Purchases and services	(24.978.755)	(23.454.167)	(24.151.940)	(22.243.223)
Personnel costs	(21.849.553)	(17.477.421)	(21.645.682)	(16.630.918)
Amortisation, depreciation and write-downs	(15.190.879)	(13.260.664)	(12.804.132)	(10.959.665)
Provisions	0	0	0	0
Other costs and operating charges	(362.042)	(876.711)	(362.042)	(876.711)
Change in inventories	93.413	(61.764)	93.413	(61.764)
Total operating costs	(62.287.817)	(55.130.727)	(58.870.384)	(50.772.281)
EBIT	12.288.660	9.020.119	13.879.554	13.378.565
Profit (Losses) from equity-accounted investee	0	0	0	0
Financial income	163.007	6.374	163.007	6.374
Financial expenses	(4.124.708)	(3.598.305)	(4.124.708)	(3.598.305)
Exchange gains/(losses)	(8.490)	(1.102)	(8.490)	(1.102)
PROFIT BEFORE TAXES	8.318.469	5.427.086	9.909.363	9.785.532
Income taxes	(1.798.736)	(1.597.823)	(2.593.901)	(3.135.056)
NET PROFIT	6.519.734	3.829.263	7.315.462	6.650.476

CONSOLIDATED NET FINANCIAL POSITION

	30.06.2024	31.12.2023
A - Cash and cash equivalents	19.709.163	13.690.212
B - Securities held for trading	0	0
C - Current financial assets	1.061.434	11.602.736
D - Liquidity (A + B + C)	20.770.598	25.292.948
E - Current bank loans	(13.686.307)	(12.120.143)
F - Other current financial liabilities	(4.326.965)	(948.035)
G - Payables to other lenders	(10.589.403)	(7.695.550)
H - Current financial indebtedness related to Bond facilities	(8.760.607)	(7.897.960)
I - Current financial debt (E + F + G + H)	(37.363.282)	(28.661.688)
J - Current net financial debt (I - D)	(16.592.684)	(3.368.740)
K - Bank loans	(28.064.140)	(27.805.467)
L - Payables to other lenders	(19.232.246)	(13.289.335)
M - Non-current financial indebtedness related to Bond facilities	(155.978.861)	(157.442.669)
N - Other non-current financial liabilities	(4.926)	(331.938)
O - Trade payables and other non-current payables	0	0
P. Non-current financial debt (K + L + M + N + O)	(203.280.174)	(198.869.409)
Q - Group net financial debt (J + P)	(219.872.858)	(202.238.149)
- Payables for leases IFRS 16 (current)	3.349.644	2.585.627
- Payables for leases IFRS 16 (non-current)	8.216.347	7.998.155
R - Net financial debt excluding Group IFRS16 impact	(208.306.867)	(191.654.367)

CONSOLIDATED CASH FLOW STATEMENT

	30.06.2024	30.06.2023
Net profit from continuing operations	6.519.734	3.829.263
Adjustments for non-cash items:
Amortisation, depreciation, revaluations and write-downs	15.190.879	12.785.254
Change in employee benefits	251.192	(13.085)
Financial charges	3.970.191	3.593.033
Income taxes	1.798.736	1.597.823
Other non-cash changes	(1.256.842)	184.182
Cash flow generated from operating activities before working capital changes	26.473.890	21.976.470
Changes in current assets and liabilities:
Decrease (increase) in inventories	(93.413)	61.764
Decrease (increase) in trade receivables	(9.516.763)	(1.216.271)
Increase (decrease) in trade payables	5.825.665	4.916.093
Increase (decrease) in tax payables	1.397.579	(850.680)
Decrease (increase) other current assets	(7.582.385)	(919.477)
Increase (decrease) in current liabilities	967.478	612.132
Decrease (increase) in other non-current assets	232.724	(9.993)
Increase (decrease) in other non-current liabilities	35.406	94.966
Decrease (increase) in assets deriving from contracts	1.298.081	41.152
Increase (decrease) in liabilities deriving from contracts	2.644.663	(184.085)
Income taxes paid	(2.170.406)	(2.798.404)
Interest paid/received	(2.075.470)	(1.574.657)
Net cash flow generated from operating activities (a)	17.437.049	20.149.010
Net increase intangible assets	(2.978.313)	(4.228.398)
Net increase tangible assets	(2.964.579)	(5.916.362)
Decrease (increase) other financial current assets	10.919.278	0
Cash flows from business combinations net of cash and cash equivalents	(585.824)	(7.333.214)
Net cash flow used in investing activities (b)	4.390.562	(17.477.973)
New financing	8.000.000	12.000.000
Repayment of loans	(6.014.209)	(3.960.609)
Reimbursement of bond loan	(2.656.836)	0
Lease payables	(6.462.421)	(5.307.190)
Payment of deferred fees for business combinations	0	(650.000)
Increase / (decrease) other financial payables	(435.354)	(592.859)
Distribution of dividends	(7.827.667)	(7.818.114)
(Purchase) Use of treasury shares	(412.173)	(5.316.671)
Net cash flow from financing activities (c)	(15.808.660)	(11.645.443)
Net increase/(decrease) in cash and cash equivalents a+b+c	6.018.952	(8.974.406)
Cash and cash equivalents at end of the period	19.709.163	22.483.673
Cash and cash equivalents at beginning of the period	13.690.212	31.458.079
Net increase/(decrease) in cash and cash equivalents	6.018.951	(8.974.406)

ALTERNATIVE PERFORMANCE INDICATORS

In accordance with the provisions of the ESMA recommendation on alternative performance indicators (ESMA/2015/1415) as implemented by Consob Communication no. 0092543 of 03 December 2015, the Alternative Performance Indicators used to monitor the Group's economic and financial performance are described below.

Total revenue and operating income Adjusted - is a non-GAAP measure used by the Group to measure its performance. The Total revenue and operating income Adjusted measure is calculated as the Total revenue and operating income as reported in the income statement in accordance with IFRS from which the non-recurring item related to negative goodwill (bargain purchase) classified under "Other operating income" was subtracted in 2024. It should be noted that Total Adjusted Operating Revenues and Income is not identified as an accounting measure under the IAS/IFRS adopted by the European Union. As a result, the basis of determination applied by the Group may not be homogeneous with that adopted by other groups and, therefore, the balance obtained by the Group may not be comparable with that determined by them.

EBITDA – is a non-GAAP measure used by the Group to measure its performance. EBITDA is calculated as the algebraic sum of profit for the period before tax, financial income and expense (including foreign exchange gains and losses and those arising from the equity method valuation of investments), amortisation, depreciation, impairment and provisions. It should be noted that EBITDA is not identified as an accounting measure as part of the IAS/IFRS adopted by the European Union. Consequently, the calculation method applied by the Group may not be consistent with that adopted by other Groups and, therefore, the balance obtained by the Parent Company may not be comparable with the balances determined by the latter.

EBITDA Margin – is an indicator that measures the Group's operating profitability as a percentage of consolidated revenues achieved during the year, and is defined as the ratio of EBITDA to Total operating revenues and income.

Adjusted EBITDA – is a non-GAAP measure used by the Group to measure its performance. Adjusted EBITDA is calculated as the algebraic sum of profit for the period before tax, financial income and expenses (including foreign exchange gains and losses and those arising from the equity method valuation of investments), amortisation, depreciation, impairment and provisions, merger & acquisition (M&A) professional service costs, costs for internal staff reorganisation, Put&Call option adjustment costs and Stock Option/Stock Grant incentive plan costs.

With regard to Adjusted EBITDA, the Group believes that the adjustment (which defines Adjusted EBITDA) has been made in order to represent the Group's operating performance, net of the effects of certain events and transactions. This adjustment relating to certain charges was necessary in order to ensure better comparability of the historical data relating to the financial years in question, as these include cost items related to corporate phenomena that are not attributable to the normal operating management of the Group's business, as well as costs for professional services relating to the extraordinary merger & acquisition operations. In order to improve the comparability of operating performance, the Group excludes from the calculation of Adjusted EBITDA the costs of accounting for stock options and stock grants (IFRS2). It should be noted that Adjusted EBITDA is not identified as an accounting measure as part of the IAS/IFRS adopted by the European Union. Consequently, the calculation method applied by the Group may not be consistent with that adopted by other Groups and, therefore, the balance obtained by the Group may not be comparable with the balances determined by the latter.

Adjusted EBITDA Margin – is an indicator that measures the Group's operating profitability as a percentage of consolidated revenues achieved during the year, and is defined as the ratio of Adjusted EBITDA to Total Adjusted operating revenues and Income.

EBIT – is a non-GAAP measure used by the Group to measure its performance. EBIT is calculated as the algebraic sum of profit for the period before tax, financial income and expense (including foreign exchange gains and losses and those arising from the equity method valuation of investments). It should be noted that EBIT is not identified as an accounting measure as part of the IAS/IFRS adopted by the European Union. Consequently, the calculation method applied by the Group may not be consistent with that adopted by other Groups and, therefore, the balance obtained by the Group may not be comparable with the balances determined by the latter.

EBIT Margin – is an index measuring the profitability of the Group's sales. It is calculated as the ratio of EBIT to Total operating revenues and income.

Adjusted EBIT – is a non-GAAP measure used by the Group to measure its performance. Adjusted EBIT is calculated as the algebraic sum of profit for the period before tax, financial income and expenses (including foreign exchange gains and losses and those arising from the equity method valuation of investments), amortisation, depreciation and impairment, merger & acquisition (M&A) professional service costs, costs for internal staff reorganisation, Put&Call option adjustment costs and Stock Option/Stock Grant incentive plan costs, and the amortisation of fixed assets deriving from the Purchase Price Allocation relating to acquisitions.

With regard to Adjusted EBIT, the Group believes that the adjustment (which defines Adjusted EBIT) has been made in order to represent the Group's operating performance, net of the effects of certain events and transactions. This adjustment relating to certain charges was necessary in order to ensure better comparability of the historical data relating to the financial years in question, as these include cost items related to corporate phenomena that are not attributable to the normal operating management of the Group's business, as well as costs for professional services relating to the extraordinary merger & acquisition operations. In order to improve the comparability of operating performance, the Group excludes from the calculation of Adjusted EBIT the costs of accounting for Stock Options and Stock Grants (IFRS2) and the amortisation and depreciation of fixed assets deriving from the Purchase Price Allocation; amortisation of the customer list, exclusive contracts and platform and data centre, relating to acquisitions.

Adjusted EBIT Margin – is an index measuring the profitability of the Group's sales. It is calculated as the ratio of Adjusted EBIT to Total Adjusted operating revenues and income.

Adjusted Net Result – is a non-GAAP measure used by the Group to measure its performance. Adjusted net result is calculated as the profit for the period before costs relating to extraordinary merger and acquisition transactions, costs for internal staff reorganisation, Put&Call option adjustment costs, the costs of accounting for Stock Options and Stock Grants (IFRS2), financial expenses relating to the closure of loan agreements and the amortisation and depreciation of fixed assets deriving from the Purchase Price Allocation; amortisation of customer list, exclusive contracts, platform and data centre, relating to acquisitions and the related tax effects on excluded items.

Net Financial Indebtedness – represents a valid indicator of the Group's financial structure. It is determined in accordance with the provisions of Consob Communication no. 5/21 of 29 April 2021 and in compliance with ESMA Recommendations 323821138. It is presented in the notes to the accounts.

Adjusted Net Financial Position – represents a valid indicator of the Group's financial structure. It is determined in accordance with Consob Communication no. 5/21 of 29 April 2021 and in compliance with ESMA Recommendations 323821138, including, where applicable, other non-current assets relating to security deposits and excluding trade payables and other non-current payables. It is also presented in the net variant for the effects of IFRS 16. This measure is presented in the management report.

Fine Comunicato n.20101-61-2024	Numero di Pagine: 18
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