Digital360 S p A: the board of directors approves the consolidated accounts and the draft accounts as of December 31, 2021

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Press release

THE BOARD OF DIRECTORS OF DIGITAL360 SPA APPROVES THE CONSOLIDATED ACCOUNTS AND THE DRAFT

FINANCIAL STATEMENTS AT DECEMBER 31, 2021

STRONG GROWTH IN RESULTS: TURNOVER UP BY 31%. PRO FORMA REVENUES1 POST ACQUISITIONS AT 41.4 MILLION (+57%). EBITDA UP SIGNIFICANTLY AT 6.9 MILLION (+38%), PRO FORMA EBITDA AT 8 MILLION (+59%). NFP CREDIT FOR 3.1 MILLION.

  • Production value of €36m, up 30% compared to the same period in 2020, and pro forma production

    value reaching 43 million euros, up 56%;

  • Consolidated revenue of €34.4 million, up 31% compared to 2020, and pro forma revenue of €41.4 million, up 57%;

  • EBITDA2 of €6.9 million, up 38% from €5.0 million in 2020 and pro forma EBITDA of €8 million, up

    59% from 2020;

  • EBIT and adjusted EBIT3 pro forma equal to 3.6 and 5.8 million euros respectively, against 2.5 and

    3.3 as of December 31, 2020;

  • Pro forma net income and adjusted net income of 2.0 and 3.9 million euros respectively, compared to 1.6 and

    €2.3 million as of December 31, 2020;

  • Net creditor financial position of EUR 3.1 million, a clear improvement compared to the debt position of EUR -1.4

    million as of December 31, 2020.

Milan, March 28, 2022 DIGITAL360 SpA, a company listed on the Euronext Growth Milan market, announces that the Board of Directors, which met today, reviewed and approved the consolidated financial statements and the draft financial statements for the year 2021, prepared in accordance with Italian accounting standards (OIC).

The increase in revenues and margins in 2021 was particularly significant and results from both the significant organic growth and the acquisitions made during the year“, says Raffaello Balocco, CEO of DIGITAL360.”We

1 The pro forma figures consolidate the economic values ​​of the subsidiaries over the whole year and not pro rata temporis. They are reclassified by the management and are given for information only because they are not audited.

2 the EBITDA and EBIT the ratios are not identified as an accounting measure under national and international accounting standards and should not be considered as an alternative measure to assess the performance of the group’s operating results.

3 Adjusted values are reclassified to neutralize the effects of amortization related to consolidation differences as of December 31.

has achieved these excellent results, also thanks to the increase in annual recurring revenues by subscription, which at the end of the year reached 8.5 million euros with an increase of 33% compared to 2020.

The scalability of the business and the ability to contain costs in relation to the evolution of revenues has allowed us to grow margins in excess of revenues, thus repaying the investments in technological innovation made in recent years which have allowed us to develop an innovative approach, based on proprietary assets (online portals, know-how, technological platforms) that are revolutionizing reference markets says Gabriele Faggioli, CEO of DIGITAL360.

Andrea Rangone, President of DIGITAL360, says: “We believe that the excellent results and growth we have achieved can be replicated outside of our country: the company has embarked on an ambitious path of international expansion based primarily on mergers and acquisitions, which should materialize in several acquisitions as early as 2022. In the meantime, we have also strengthened the management structure with the entry of executives important, with a great experience in managing the complexity.”

Main consolidated results for the year

Seven acquisitions were made during the year, including two in addition to companies already 51% owned at the start of the year and whose shareholding increased to 100%. The acquisition of new holdings has significantly changed the scope of consolidation, making it difficult to read the economic and financial data compared to the previous year. The acquisitions which, from the point of view of the new scope, had the most impact were in particular carried out in the last quarter of 2021 and consolidated in the accounts on a pro rata temporis, with therefore still a very limited impact on the economic result of the consolidated financial statements. Due to this inconsistency, pro forma income statement figures have also been presented, simulating the effect of consolidation as if referring to the full year. Pro forma data is therefore useful to better represent the management effects of acquisitions on the Group’s business and the overall dimensional impact of costs and revenues, increasing their importance also in view of the year 2022.

Total revenues in the consolidated financial statements for the year ended December 31, 2021 amounted to €34.4 million, an increase of 31% compared to the same period in 2020, when they amounted to €34.4 million. amounted to 26.3 million euros. A little less than a third of the increase of €8.1 million is explained by the contribution of the new consolidated companies, which represents approximately €2.5 million, and the difference (€5.6 million) compared to organic revenue growth on a like-for-like basis. basis (+21% compared to 2020).

Pro forma revenues of €41.4 million are 57% higher than last year.

The value of production in the consolidated accounts amounts to 36 million, with an overall increase of 8.4 million (+30%): of which 2.7 million are linked to the expansion of the perimeter.

The pro forma production value is 43 million euros, up 56% compared to 2020.

The consolidated financial statements of EBITDA amount to 6.9 million euros, an increase of 38% compared to the figure recorded on December 31, 2020, when it was 5 million euros. The €1.9 million increase is 20% linked to the contribution of newly consolidated companies, which represents approximately €0.4 million, and to the difference with organic growth. EBITDA on a like-for-like basis, i.e. without taking into account the effect of new acquisitions, amounted to 6.5 million euros, up by 1.5 million euros compared to 2020 (+29%, more than proportional to revenue growth, +21%) .

The pro forma EBITDA amounted to 8.0 million euros and increased by a good 3 million (+59%) compared to the result of last year.

The consolidated financial statements of EBIT amount to 3.6 million euros at 31.12.21, an increase of 44% compared to the same period in 2020 (where it was worth 2.5 million euros) , while adjusted EBIT amounted to €5.0m, an increase of 51% compared to the reported value as of December 31, 2020 (it was €3.3m). The effect of the new scope of consolidation weighs on EBIT by 0.4 million euros.

With reference to pro-forma data, adjusted EBIT reached 5.8 million euros at the end of the financial year, 76% more than the 3.3 million euros of the previous year.

The consolidated net profit increased to 2.0 million euros (it was 1.6 million euros in 2020).

Adjusted net income, measured on a pro forma basis over 12 months, amounted to 3.9 million euros, up 67% compared to the previous year (when it was 2.3 million euros). euro).

During the year, the Group’s Net Financial Position (NFP) improved markedly, rising from 1.4 million (debt) at 31

December 2020 at -3.1 million (credit) as of December 31, 2021.

It should be noted that at the end of the year, there remained a residual part of the convertible bond (POC) issued by the company during the initial public offering, maturing on June 13, 2022, for an amount of 1.1 million euros. At the current share price (over 4.00 euros), the conversion option remains very attractive, i.e. “in the money”, which should significantly benefit the Group’s NFP on the financial year 2022.

Consolidated shareholders’ equity was strengthened, going from €9.8 million as of December 31, 2020 to €16.4 million as of December 31, 2021.

Here is a summary of the main economic, stock market and financial indicators.

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