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Yolo Group

Earnings Release Mar 23, 2023

4450_10-k-afs_2023-03-23_de0a1c3d-a939-4534-b41b-d4f661025d1f.pdf

Earnings Release

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Informazione
Regolamentata n.
20264-4-2023
Data/Ora Ricezione
23 Marzo 2023
16:31:42
Euronext Growth Milan
Societa' : YOLO GROUP
Identificativo
Informazione
Regolamentata
: 173944
Nome utilizzatore : YOLOGROUPN02 - Francesco Greco
Tipologia : 1.1
Data/Ora Ricezione : 23 Marzo 2023 16:31:42
Data/Ora Inizio
Diffusione presunta
: 23 Marzo 2023 16:31:43
Oggetto : STATEMENTS AS AT 31 DECEMBER
2022
YOLO: APPROVED DRAFT FINANCIAL
Testo del comunicato

Vedi allegato.

YOLO:

APPROVED DRAFT FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022

REVENUES AND MARGINS IN LINE WITH BUSINESS PLAN TARGETS

Key results for the period and comparison with results as at 31 December 2021

Business and economic-financial indicators include Yolo Group S.p.A., Yolo S.r.l. and Bartolozzi Assicurazioni Broker S.r.l., (in which, in 2022, a majority stake was acquired) compared with 2021 on a like-for-like basis.

  • Total revenues: EUR 4.6 million in 2022, up from EUR 2.4 million in 2021 (+92%).
  • EBITDA: negative for EUR 0.77 million in 2022 (-17% of revenues), improving as a % of total revenues compared to the previous year.
  • Group Net Result: negative for EUR 1.6 million in 2022 (-35% of revenues), improving as a % of total revenues compared to the previous year.
  • Net Financial Position: positive (cash) of EUR 6.7 million as of 31 December 2022, an improvement from EUR 2.2 million as of 31 December 2021 (+204%).
  • 13 new partnership agreements were signed during the year with banks, insurance companies and retail operators.

Milan, 23 March 2023 - The Board of Directors of YOLO Group S.p.A. ("YOLO" or the "Company"), one of the leading players in the Italian insurtech market of digital insurance services, today approved the draft financial statements for the year ended 31 December 2022 and the consolidated financial statements prepared in accordance with the national accounting standards OIC.

In line with the Business Plan 2022-26, YOLO's main focus last year was on the following initiatives:

  • development of proprietary technology platforms;
  • expansion the number of distribution partners and the range of insurance products;
  • development of the new phygital distribution channel;
  • corporate strengthening through M&A transactions;
  • consolidation of the organizational structure.

Main operating results

Total revenues amounted to EUR 4.6 million, sharply increased (+92%) compared to EUR 2.4 million in 2021 on a like-for-like basis. The increase in revenue relates to both the development of the "technology enabler" business, which generated EUR 2.8 million (+87% vs. 2021), and the growth in commissions related to the insurance brokerage business, which generated EUR 1

million (+36% vs. 2021), and the increase in the value of tax credits, which amounted to EUR 0.8 million (vs. EUR 0.1 million in 2021).

Analysing the mix of core revenues, the share of revenues from services (72%) on total revenues is higher than expected (65%). On the other hand, commission revenues as a percentage (28%) of total revenues is lower than expected (35%) as a result of inflationary pressures that slowed down household and corporate consumption. Consequently, it has contributed to a weakening of the insurance underwriting propensity, with effects that were observed not only on the domestic market but also on the international market. For the same reasons, the gross value of premiums collected in 2022, at EUR 3.8 million, is also lower than forecast (EUR 4.2 million) but significantly better than in 2021 (+65%). Finally, tax credits of EUR 0.8 million were originated from the expenses incurred for the IPO process, which led to the listing of the shares and convertible bonds on Euronext Growth Milan, and from the investments made for the development of the technological platform.

EBITDA was negative for EUR 0.77 million, basically in line in absolute terms compared to 2021 and improving as a percentage of total revenue (-17% in 2022 vs. -32% in 2021).

EBIT was negative for EUR 2.2 million, improving as a percentage of total revenue (-47% in 2022 vs. -73% in 2021).

The Net Result was a loss of EUR 1.6 million compared to a loss of EUR 1.2 million in the previous year. Although worse in absolute terms than in 2021, it is in line with forecasts and its percentage of total revenue is improving (-35% in 2022 vs. -52% in 2021).

The Net Financial Position in 2022 shows net cash of EUR 6.7 million, up from EUR 2.2 million in 2021, mainly as a result of the capital increase realized with the IPO.

"2022 was a decisive year for our development path. The listing on the EGM gave new boost to YOLO's growth, enabling us to meet the guidelines set out in the Industrial Plan. New distribution partnerships and the integration of two insurance players into the Group perimeter have strengthened our competitiveness in a market, the insurtech one, which is highly dynamic and sees growing interest not only from traditional players but also from new ones." said Gianluca De Cobelli, Co-founder and CEO of YOLO Group."

Main events of the financial year 2022

In February 2022, YOLO finalized the acquisition of 51% of Bartolozzi Assicurazioni S.r.l, a traditional insurance broker through which it diversified its distribution model by integrating physical and digital ('phygital') channels.

On 21 March 2022, the Shareholders' Meeting approved the plan to list the Parent Company's shares on Euronext Growth Milan.

On 13 July 2022, the Extraordinary Shareholders' Meeting resolved to issue a bond convertible into shares of YOLO Group S.p.A., with the option to apply for listing of the bonds on Euronext Growth Milan, for a maximum total amount of EUR 3,000,000.

On 3 August 2022, the placement of the ordinary shares on the Euronext Growth Milan - Professional Segment market, at a price of EUR 3.77 per share, was concluded, with total inflows of EUR 10 million. YOLO also successfully concluded the placement on the Euronext Growth Milan market - Professional Segment, of convertible bonds for a total amount of approximately EUR 3 million with a maturity date of 5 August 2025.

On 5 August 2022, the placement of the ordinary shares and convertible bonds on Euronext Growth Milan - Professional Segment was successfully concluded.

On 2 September 2022, the Greenshoe Option was executed by the Joint Global Coordinators.

On 22 December 2022, a binding agreement was signed for the acquisition of 51% of AllianceInsay Broker S.p.A., which is active in the indirect distribution to car dealers of non-life insurance products and services for the automotive sector.

Main events after 31 December 2022

On 17 February 2023, the acquisition of 51% of the capital of AllianceInsay was finalized with the aim of developing important distribution, commercial and technological synergies. With this acquisition YOLO expands its offer towards the target group of car dealers with new product solutions and a vertical automotive platform. Including AllianceInsay in the scope of consolidation for 2022, the aggregate value of revenues would amount to EUR 6.7 million, showing strong growth compared to the previous year (+178% compared to 2021).

Finally, as provided for in the Convertible Bond Regulations ("YOLO GROUP CONVERTIBLE 5% 2022-2025"), the first conversion period of the POC into shares opened with a duration from 1st to 31st March. This allows the exercise of the right to request the conversion of the Convertible Bonds into Conversion Shares on the basis of the conversion ratio of 1,000 (one thousand) Yolo Group Shares for each Bond submitted for conversion and therefore at the implied unit price per share of EUR 4.15 (four/15).

Business Outlook

The ongoing conflict in Ukraine has generated negative effects on the domestic and international economy. The effects of this period of severe financial turbulence on business activity are, at the

moment, difficult to predict. Nevertheless, in a changing market environment, YOLO was able to increase the total value of production in 2022 compared to the previous year. Moreover, the trends fueling the shift to digital insurance and, more generally, the growth of the insurtech market remain unchanged. These factors, combined with the expected benefits from the diversification of distribution channels and the synergies generated by M&A transactions, lead YOLO to be confident about the pursuit of its growth path.

Finally, the Board of Directors resolved to call the Shareholders' Meeting for 27 April 2023.

The Shareholders' Meeting will be called to approve, in ordinary session, the Board of Directors' Management Report and the Financial Statements as at 31 December 2022, which closed with a loss of EUR 1.6 million. The Board of Directors proposes to carry forward the loss for the year.

***

The same Shareholders' Meeting will also be called upon to resolve on the appointment of a director pursuant to Article 2386 of the Italian Civil Code, following the co-option of a director at the Board of Directors' meeting held on last 19 December.

The notice of the Shareholders' Meeting will be published in accordance with the law on the Company's website.

The full text of the resolution proposals and the reports of the Board of Directors relating to the items on the agenda, together with all related documentation, will be made available, in accordance with the terms and procedures indicated by law, at the Company's registered office, as well as on the Company's website (www.yolo-insurance.com) and that of Borsa Italiana S.p.A.

The press release is available in the Investor/Press Release section of www.yolo-insurance.com.

The Annual Financial Report as at 31 December 2022 will be made available to the public, at the Company's registered office and at Borsa Italiana, as well as on the website www.yoloinsurance.com within the statutory time limits.

***

For the transmission and storage of Regulated Information, YOLO Group S.p.A. uses the eMarket and the eMarket STORAGE storage mechanism available at managed by Teleborsa S.r.l., with registered office at Piazza Priscilla, 4 - Rome.

YOLO Group, listed on the professional segment of Euronext Growth Milan, is one of the leading players in the Italian insurtech market of digital insurance services that allows on-demand and pay-per-use underwriting of products of major national and international insurance groups. In 2022, YOLO was included in The DIA Community Top 250 ranking, the global selection of the best insurtech startups and won the "Best IPO 2022" award sponsored by Assonext. In 2021, YOLO was awarded Best Insurtech at the Italy Insurance Forum, the initiative promoted by Insurance Club, and

was included in the list of 100 insurtech leaders by Forbes Italia. The company's shareholders include its two cofounders (Gianluca De Cobelli and Simone Ranucci Brandimarte), Generali Italia, Intesa Sanpaolo Vita, Neva SGR, Primo Ventures SGR, Be The Change, CRIF, Mansutti, Net Insurance, Miro Venture and Banca di Piacenza. Website: www.yolo-insurance.com

CONTATTI

Investor Relator YOLO Group S.p.A. Roberta Pazzini – Investor Relation Manager Blend Tower, Piazza Quattro Novembre 7, 20124 Milano (MI) [email protected]

Media Relations Euronext Growth Advisor Twister communications group EnVent Capital Markets Ltd Lucia Saluzzi + 39 347 5536979 Square – London W1J 5AW

Cinzia Delogu +39 348 3663594 Euronext Growth Advisor 42 Berkeley [email protected] [email protected]

CONTO ECONOMICO RICLASSIFICATO RECLASSIFIED PROFIT AND LOSS STATEMENT

(Values in thousand of euros) 2021 % 2022 % Delta %
TOTAL REVENUES 1.789 100% 4.604 100% 2.815 157%
Direct Cost 35 2% 251 5% 216 624%
Sales and marketing 391 22% 785 17% 394 101%
Personnel, directors and consultant 1.382 77% 2.941 64% 1.559 113%
Operations & IT services 337 19% 481 10% 144 43%
G&A 435 24% 915 20% 480 110%
TOTAL COSTS 2.545 142% 5.122 111% 2.577 101%
EBITDA (791) -44% (768) -17% 23 -3%
Depreciations 965 54% 1.414 31% 449 47%
EBIT (1.756) -98% (2.182) -47% (426) 24%
Interest & Tax and deferred tax (+ / - ) 537 30% 592 13% 55,2 10%
Total Earning or (Loss) (1.219) -68% (1.590) -35% (371) #DIV/0!
30%
Earning or (loss) third parties 0 0% (3) 0% (3,0) n.a.
Group Earning or (loss) (1.219) -68% (1.587) -34% (368) 30%

STATO PATRIMONIALE RICLASSIFICATO

RECLASSIFIED BALANCE SHEET

Balance Sheet Consolidated (€'000) Actual at
31.12.2021
Actual at
31.12.2022
Intangible fixed assets 3.880 6.779
Tangible fixed assets 31 46
Financial fixed assets 0 0
Total Fixed assets 3.910 6.825
Trade receivables 1.030 2.850
Trade payables (1.857) (3.349)
Operating working capital (827) (499)
Other current assets 2.245 4.394
Other current liabilities (244) (1.512)
Net working capital 1.174 2.383
TFM 0 (18)
TFR (21) (82)
Other long term assets and liabilities (21) (100)
NET CAPITAL EMPLOYED 5.063 9.108
Equity o/w Group (7.379) (15.774)
o/w non-controlling interest 0 (5)
Net Equity (7.379) (15.779)
Cash and cash equivalents 2.316 11.384
Convertible bond 0 (2.996)
Bank Debts 0 (1.717)
Net Financial Position 2.316 6.671
TOTAL SOURCES (5.063) (9.108)

RENDICONTO FINANZIARIO, METODO INDIRETTO

Bilancio Consolidato al 31 dicembre 2022 YOLO GROUP S.P.A.

CASH FLOW STATEMENT, INDIRECT METHOD

Consolidated Financial Statements as at 31 December 2022 YOLO GROUP S.P.A.

A. FLUSSI FINANZIARI DERIVANTI DALLA GESTIONE REDDITUALE (METODO INDIRETTO) 31/12/22 31/12/21
Utile (perdita) dell'esercizio -1.590.427 -1.219.231
Imposte sul reddito -678.651 -536.801
Interessi passivi/(interessi attivi) - proventi finanziari
(Dividendi)
86.590 0
(Plusvalenze)/minusvalenze derivanti dalla cessione di attività
1. Utile (perdita) dell'esercizio prima d'imposte, interessi e comp. straordinarie -2.182.488 -1.756.032
interessi, dividendi e plus/minusvalenze da cessione
Rettifiche per elementi non monetari che non hanno avuto
contropartita nel capitale circolante nettto
Accantonamento ai fondi
Ammortamenti delle immobilizzazioni
Svalutazioni per perdite durevoli di valore
1.440.862 965.370
(Rivalutazioni di attività)
Altre rettifiche per elementi non monetari 79.229 -30.439
2. Flusso finanziario prima delle variazioni del ccn -662.398 -821.101
Variazione del capitale circolante netto
Decremento/(incremento) delle rimanenze
Decremento/(incremento) dei crediti vs clienti -1.819.667 -534.450
Incremento/(decremento) dei debiti verso fornitori
Decremento/(incremento) ratei e risconti attivi
1.491.832
-108.393
1.160.834
-83.122
Incremento/(decremento) ratei e risconti passivi 469.860 1.326
Altre variazioni del capitale circolante netto -1.243.152 -587.749
3. Flusso finanziario dopo le variazioni del ccn -1.871.917 -864.262
Altre rettifiche
Interessi/proventi finanziari -86.590 0
(Imposte sul reddito)
Dividendi incassati
678.651 536.801
Utilizzo dei fondi
4. Flusso finanziario dopo le altre rettifiche -1.279.856 -327.461
Flusso finanziario della gestione reddituale (A) -1.279.856 -327.461
B. FLUSSI FINANZIARI DERIVANTI DALL'ATTIVITA' D'INVESTIMENTO
Immobilizzazioni materiali
(Investimenti) -13.883 -13.312
Prezzo di realizzo disinvestimenti
Immobilizzazioni immateriali
(Investimenti) -4.024.664 -1.957.157
Prezzo di realizzo disinvestimenti
Acquisizione o cessione di società controllate o di rami d'azienda al netto delle -71.010 0
disponibilità liquide
Flusso finanziario dell'attività di investimento (B) -4.109.557 -1.970.470
C. FLUSSI FINANZIARI DERIVANTI DALL'ATTIVITA' DI FINANZIAMENTO
Mezzi di terzi
Incremento/decremento debiti a breve verso le banche -27.506 0
Accensione finanziamenti 1.600.000 0
Emissione Prestito obbligazionario Convertibile
Rimborso finanziamenti
2.996.300
-67.293
0
0
Mezzi propri
Aumento di capitale a pagamento/conferimenti soci
Cessione (acquisto) di azioni proprie
10.008.555
0
2.500.000
0
Dividendi (e acconti su dividendi) pagati -51.983 0
Flusso finanziario dell'attività di finanziamento (C) 14.458.073 2.500.000
Incremento (decremento) delle disponibilità liquide (A+B+C) 9.068.660 202.069
Disponibilità liquide 01/01/2022
Disponibilità liquide 31/12/2022
2.315.508
11.384.168
2.113.439
2.315.508

RENDICONTO FINANZIARIO

Progetto di Bilancio al 31 dicembre 2022 YOLO GROUP S.P.A

A.
FLUSSI FINANZIARI DERIVANTI DALLA GESTIONE
31/12/22 31/12/21
REDDITUALE (METODO INDIRETTO)
Utile (perdita) dell'esercizio -1.551.702 -1.201.125
Imposte sul reddito -680.687 -530.344
Interessi passivi/(interessi attivi) - proventi finanziari 76.606 0
1. Utile (perdita) dell'esercizio prima d'imposte, interessi e comp. straordinarie -2.155.782 -1.731.469
interessi, dividendi e plus/minusvalenze da cessione 0 0
Rettifiche per elementi non monetari che non hanno avuto contropartita nel capitale
circolante netto
Ammortamenti delle immobilizzazioni 1.368.457 960.004
Altre rettifiche per elementi non monetari 50.997 -13.939
2. Flusso finanziario prima delle variazioni del CCN -736.329 -785.404
Variazione del capitale circolante netto
Decremento/(incremento) dei crediti vs clienti
Incremento/(decremento) dei debiti verso fornitori
Decremento/(incremento) ratei e risconti attivi
Incremento/(decremento) ratei e risconti passivi
Altre variazioni del capitale circolante netto
3. Flusso finanziario dopo le variazioni del CCN
-1.489.933
1.409.374
-101.764
460.252
-1.683.221
-2.141.621
-506.112
1.141.183
-84.663
0
-522.165
-757.160
Interessi/proventi finanziari
(Imposte sul reddito)
4. Flusso finanziario dopo le altre rettifiche
-76.606
680.687
-1.537.540
0
530.344
-226.816
Flusso finanziario della gestione reddituale (A) -1.537.540 -226.816
B.
FLUSSI FINANZIARI DERIVANTI DALL'ATTIVITA' D'INVESTIMENTO
Immobilizzazioni materiali
(Investimenti) -11.655 -13.312
Prezzo di realizzo disinvestimenti 0 0
Immobilizzazioni immateriali
(Investimenti) -4.009.152 -1.957.155
Prezzo di realizzo disinvestimenti 0 0
Immobilizzazioni finanziarie
(Investimenti) -305.000 0
Flusso finanziario dell'attività di investimento (B) -4.325.807 -1.970.468
C.
FLUSSI FINANZIARI DERIVANTI DALL'ATTIVITA' DI FINANZIAMENTO
Mezzi di terzi 4.496.300
Mezzi propri
Aumento di capitale a pagamento/conferimenti soci
10.008.555 2.500.000
Flusso finanziario dell'attività di finanziamento (C) 14.504.855 2.500.000
Incremento (decremento) delle disponibilità liquide (a+b+c) 8.641.508 302.716
Disponibilità liquide al 1 gennaio 2.057.373 1.754.657
Disponibilità liquide al 31 dicembre 10.698.881 2.057.373
VARIAZIONE DELLE DISPONIBILITA' LIQUIDE 8.641.508 302.716

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