Itway S p A : Interim Management Report of Itway Group as of September 30, 2021

Interim Management Report of the

Itway Group as of September 30, 2021

Interim management report as of September 30, 2021

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Board of Directors

(Until the approval of the December 31, 2022 Financial Statements)

Board of Statutory Auditors

(Until the approval of the December 31, 2022 Financial Statements)

Manager mandated to draft corporate accounting documents

The board of directors named Sonia Passatempi (Administrative Manager of the Group) as the Manager in charge of drafting corporate accounting documents for the Itway Group.

Auditing Company

Analisi S.p.A.

The General Meeting on July 2, 2018 gave the mandate for the auditing for a period of nine years until the approval of the financial statements for the year ending December 31, 2026 and, pursuant to the regulations in force, it cannot be renewed.

Interim management report as of September 30, 2021

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Interim Management Report as of September 30, 2021

In order to give continuity with the past, Itway drafted and published the consolidated interim management report as of September 30, 2021 on a voluntary basis despite it not being required by the Issuers' Regulation of the MTA market of Borsa Italiana.

The Board of Directors on November 12, 2021 approved the publication of the current interim management report, which has not been audited.

In the current interim management Report as of September 30, 2021, the analysis of the economic performance was carried out with reference to the nine months between January 1- September 30, 2021 and in the quarter from July to September 2021 compared with the equivalent periods of 2020. The net financial position is provided with reference to September 30, 2021, June 30, 2021 and compared with the one in consolidated financial statements as of December 31, 2020.

The accounting statements to September 30, 2021 were drafted before taxes and before the fiscal impact on the result for the period.

Performance of the Group and the reference market

The accounting principles, the evaluation principles and the consolidation principles referred to in preparing the interim management report as of September 30, 2021 are, as in the previous fiscal year, the international accounting principles defined as IFRS. In particular, these principles require forward-looking statements, as indicated in the continuation of the current report, in particular in the section "Foreseeable E volution of operations". In the context of the economic uncertainty illustrated below, please note that these forecasts have a component of risk and uncertainty. Therefore, it cannot be ruled out that in the near future the results achieved could be different from those forecast, therefore requiring revisions that today cannot be either estimated or forecasted.

Following is the consolidated condensed income statement at September 30, 2021 compared with that of the same period a year earlier:

Interim management report as of September 30, 2021

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Interim management report as of September 30, 2021

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In the nine months to September 30, 2021, total revenue of the Itway Group totalled Euro 25,736 thousand, with an increase of approximately 15% compared with the same period a year ago thanks to the positive performance of the Greek and Turkish subsidiaries and, in Italy, of 4Science. EBITDA was a positive Euro 1,513 thousand compared with Euro 774 thousand in the same period of 2020 (+95%). EBIT and the Result before taxes were respectively Euro 1,015 thousand and Euro 460 thousand compared with the same period of 2020 when EBIT was Euro 372 thousand and the Result before taxes Euro 566 thousand.

Financial charges in the first nine months of 2021 mainly relate to the interests due for the settlement agreement reached on financial debt and payments in Greece and Turkey towards suppliers in currencies other than the local one that had an adverse effect compared with a year ago. They also relate to the prudential booking of Euro 243 thousand after applying the net equity method to value the stake held in Be-Innova S.r.l. that in the period recorded a loss. The end-year simulated projection showed that Be-Innova would absorb the loss.

Non-recurring charges continued to improve from Euro 268 thousand in the 2020 fiscal year to Euro 166 thousand in the 2021 fiscal year, with the financial debt remodulation program now complete.

In the third quarter, the Group continued its positioning towards the Digital product-oriented model, focusing on business segments with a higher value-added, through three business units.

• Cybersecurity;
• Data Science;
• Safety.

The Itway Group during the first nine months of 2021 continued to invest through its subsidiaries in the markets of Cyber security, IoT and Artificial Intelligence (AI) and Big Data, which are all connected and correlated.

Business unit areas:

• Itway S.p.A specializes in consultancy, planning and system integration in the field of cyber security, in particular on the GDPR, Internet of Things (IoT and work safety in the EH&S (Environment, Health & Safety) sector.
• 4Science S.r.l. offers services and solutions for Data Science, Data Management, and Repository Data for the scientific research, cultural heritage.
• Be Innova S.r.l. carries out Managed Security Services (MSS) with cyber security and network monitoring services through its NOC-SOC located in Trento. To date there are approximately 50,000 protected digital devices. The main client of Be In nova is the Province of Trento for which it handles 24/365 days/year Cyber security. Also worthy of mention is the strong partnership established with IBM, for which it is a Service Center for Information Security

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