Retelit S p A : Press release

PRESS RELEASE

BOARD OF DIRECTORS APPROVES

2020 FIRST QUARTER REPORT

RETELIT CONSOLIDATED WITH PA GROUP: REVENUES AND PROFITS DOUBLE

DOUBLE-DIGIT REVENUES AND EBITDA GROWTH AT LIKE-FOR-LIKE CONSOLIDATION SCOPE

• Revenues and operating income of Euro 34.2 million, compared to Euro 17.0 million for Q1 2019
• EBITDA1 of Euro 10.1 million, compared to Euro 6.7 million in Q1 2019
• Revenues and EBITDA of Retelit alone at like-for-like consolidation scope of respectively Euro 19.3 million (up 13.2% YoY) and Euro 7.5 million (up 12.9%).
• EBIT of Euro 3.2 million (Euro 1.5 million in Q1 2019)
• Net profit of Euro 2.3 million (Euro 1.3 million in Q1 2019)
• Cash EBITDA2 of Euro 7.6 million, compared to Euro 5.1 million in Q1 2019
• Net Debt Position of Euro 67.8 million, compared to cash position of Euro 3.3 million at December 31, 2019
• Orders (TCV) up 7.8% to Euro 16.1 million, compared to Euro 15.0 million (including PA Group) for Q1 2019

Milan, May 13, 2020 - The Board of Directors of Retelit S.p.A. (MTA: LIT.MI), an Italian leader in fiber optic infrastructure and digital transformation projects, listed on the MTA - STAR segment, has reviewed and approved the Interim Report at March 31, 2020.

Retelit's Chairman Dario Pardi stated: "The first quarter of 2020 represents a strategic step for Retelit, with the initial consolidated figures with PA Group reported, which - after the closing of the transaction on January 14, 2020 - will allow us to significantly step up our business growth. In these initial three months in addition, we have started the process to integrate the two groups. The results achieved indicate that we are on the right path and that, once the integration has been completed and the M&A costs absorbed, we can deliver even higher margins and fully leverage the expected synergies. We have also started a key programme to purchase treasury shares through a partial voluntary public purchase offer, which testifies to a careful allocation of capital. Finally, despite an unfavourable economic environment, we expect that the company can deliver growth for 2020 against the previous year. In this general environment, this possibility indicates the great solidity and resilience and strong commercial and industrial capabilities of the Group."

"The quarterly results are undoubtedly strong - - underlined Federico Protto, Chief Executive Officer of Retelit - both for Retelit stand alone and consolidated, it is clear that we have been able to manage

1Alternative Performance Indicators: EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) is an alternative performance indicator not defined under IFRS but used by company management to monitor and assess the operating performance as not impacted by the effects of differing criteria in determining taxable income, the amount and types of capital employed, in addition to the relative amortisation and depreciation policies. Retelit defines this indicator as the profit/(loss) for the period before amortisation, depreciation and write-downs, financial charges and income and income taxes.

2Cash EBITDA, a metric used by Retelit expressing the effective capacity to generate operating cash net of working capital effects, calculated by subtracting from consolidated EBITDA items not producing currently or in the future cash flows and adding items which have produced or may produce additional cash flow over reported EBITDA

well both core operations and those to start the integration, without neglecting investment, which is fundamental for our business. I wish to underline also that since the beginning of the Covid-19 pandemic, we have structured the company in such a way as to ensure full operability and that our employees and associates can work in a safe manner remotely, while also providing our customers and partners the usual added value connectivity services and solutions, without any impact on quality and the service provided. On the contrary, we have fully satisfied the urgent requests for increased service, which have been necessary for our customers to cope with the emergency. The Retelit Group can now serve over 4,000 customers throughout Italy, thanks to the close collaboration of over 500 employees who remotely and through targeted interventions on-site ensure that services and infrastructure are kept at the highest possible levels. We continue to work to tap into the business opportunities that are emerging from increased demand for high-capacity and speed connectivity.

Q1 2020 CONSOLIDATED KEY FINANCIAL HIGHLIGHTS

(in Euro/000)	Q1 2020	Q1 2019	Change
Value of production	34,150	17,020	101%
Value added (1)	18,156	8,689	109%
EBITDA	10,074	6,684	51%
EBIT	3,249	1,516	114%
Result before taxes (EBT)	2,626	1,406	87%
Net Profit	2,320	1,324	75%
Net margin percentage (2)	6.8%	7.8%

	31.03.2020	31.12.2019	Change
Parent company shareholders net equity	170,196	162,783
	No.	No.
Average workforce	517	92	461%

(1) difference between value of production and purchases of raw materials, external services and other operating costs

(2) Net profit/(loss)/value of production

INCOME STATEMENT

The results of the PA Group are consolidated for the first time in the first quarter of 2020, entering the consolidation scope on January 1, 2020 as a result of its acquisition on January 14, 2020. The Q1 2020 results of the Retelit Group are therefore not comparable with Q1 2019 due to the change in the consolidation scope. For further details on the acquisition of PA Group, reference should be made to the paragraph 1.1.2 Business combinations during the reporting period of the Interim Report.

Q1 2020 Revenues and operating income were Euro 34.2 million, compared to Euro 17.0 million in Q1 2019; the increase is principally due to the acquisition of PA Group which contributed approx. Euro 14.9 million to revenues in the first quarter. At like-for-like consolidation scope with the previous year, Revenues and other income would amount to Euro 19.3 million, up 13.2%. Other income includes Revenues for infrastructure cessions in the quarter of Euro 2.3 million and income from the concession of fiber optic, cables duct and transmission system rights-of-use which qualify as finance leases as per IFRS 16.

Core revenue totalled Euro 33.7 million, compared to Euro 16.9 million in the first quarter of 2019 and, according to new reclassification adopted following the acquisition of PA Group, broke down as follows: Enterprise & Government revenues of Euro 18.4 million (55%) and Wholesale revenues of Euro 15.3 million (45%).

In the first quarter, commercial operations generated new orders (TCV - Total Contract Value) worth Euro

16.2 million, compared to Euro 15.0 million including the PA Group. New orders amounted to Euro 9.1 million (56%) for the Enterprise & Government segment and Euro 7.1 million for the Wholesale segment (44%).

EBITDA in the first three months of 2020 was Euro 10.1 million, compared to Euro 6.7 million in the first quarter of 2019. At like-for-like consolidation scope, EBITDA would amount to Euro 7.5 million, up 12.9% on Q1 2019. The EBITDA margin was 29.5% (39.3% in Q1 2019), following a different Revenues Mix, with differing margins from the integration between the Retelit Group and PA Group. At like-for-like consolidation scope in fact, the EBITDA Margin would be 39.2%, in line with Q1 2019. EBITDA was impacted by higher costs for external consulting for M&A activities related to the Brennercom transaction and integration costs between Retelit and the PA Group.

Cash EBITDA was Euro 7.6 million, compared to Euro 5.1 million in Q1 2019.

EBIT amounted to Euro 3.2 million, compared to Euro 1.5 million in the same period of the previous year, after amortisation, depreciation and provisions of Euro 6.8 million (Euro 5.2 million in Q1 2019).

Net financial charges amounted to Euro 622 thousand, increasing Euro 110 thousand compared to Q1 2019, following the recognition of financial charges maturing for Euro 720 thousand on the medium/long-term loan contract agreed by Retelit Digital Services S.p.A with a Bank Syndicate for a total maximum amount of Euro 156.2 million, in addition to financial charges for IFRS 16 accounting of approx. Euro 135 thousand.

Estimated income taxes for Q1 2020 were approx. Euro 306 thousand, compared to Euro 82 thousand in the same period of the previous year.

The net profit was Euro 2.3 million, increasing on Euro 1.3 million in Q1 2019.

BALANCE SHEET

The Group's net financial position was a debt position of Euro 67.8 million, compared to a cash position of Euro 3.3 million at December 31, 2019. The movement mainly relates to the loan contract, subscribed for a total maximum amount of Euro 156,200,000.00 and issued for Euro 87 million, between RDS SpA and a

banking syndicate, signed on October 21, 2019 and amended on March 18, 2020. The loan was obtained to support the acquisition of the PA Group and Brennercom and to refinance the existing debt.

Group financial assets amount to Euro 43.2 million, principally comprising cash and cash equivalents (Euro

43.1 million), which at December 31, 2019 amounted to Euro 24.5 million. The increase in cash and cash equivalents of Euro 18.7 million, in addition to the consolidation of the PA Group for the first time (positive change of Euro 5.5 million), was impacted by the above loan.

Group shareholders' equity increased from Euro 162.8 million at December 31, 2019 to Euro 170.2 million at March 31, 2020.

In Q1 2020, investments totalled Euro 4.8 million, of which Euro 3.3 million in infrastructure and Euro 1.5 million in the AAE-1 Strategic Area.

Investments mainly concern the construction of client connections, the acquisition of IT infrastructure and the development of the metropolitan network and the backbone. The number of sites reached by fiber increased from 4,544 at the end of 2019 to 6,043 at the end of March 2019, of which 45 other operator Data Centers, 3,605 client sites, 1,214 telecommunication towers and 451 cabinets with 16 owned Data Centers. Network infrastructure kilometres was therefore stable at approx. 13,600 KM (equivalent to approx. 355,000 KM of fiber optic cables, considering all primary and secondary optical cables of the MAN network and the cables installed on the Long Distance Network).

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OPERATING PERFORMANCE

The acquisition of PA Group led to the creation of a leading Italian ICT integrated services operator, highly diversified between added value infrastructure and services, leveraging the offer and expertise of two perfectly complementary enterprises. Specifically, a new business organisation was designed on the basis of the target customers, Enterprise & Government customers and Wholesale customers and the offer areas: "Platforms and Infrastructures" and "Solutions" or managed ICT services.

The "Platforms and Infrastructures" business (62% of total revenues) is focused on the capacity to support the customer through services ranging from fiber optic connectivity to the Multicloud, Cyber Security services and Application Performance Monitoring to SD-WAN technology based network services and co-location services, and finally the connectivity services on the AAE-1 cable.

The "Solutions" business (38% of total revenues) includes complete and integrated solutions, such as operating software (SAP, Microsoft Dynamics, software and proprietary products, etc.), CRM, Business Analytics, Networking, Cybersecurity and Cloud and Datacenter services.

Enterprise & Government

In the first quarter of 2020, revenues totalled Euro 18.4 million (55% of total revenues), of which Euro 5.8 million in the Platform and Infrastructure business and Euro 12.6 million in the Solutions business. Revenues stemmed from major enterprises and PMI's, belonging mainly to the Finance, Industry and Public Sector segments. Operations generated new orders (TCV) for Euro 9.1 million (56% of total orders), of which Euro 2.9 million concerning platforms and infrastructure and Euro 6.2 million concerning the Solutions business.

Wholesale

In the first quarter of 2020, revenues totalled Euro 15.3 million (45% of total revenues), of which Euro 7.9 million National and Euro 7.4 million International. Operations generated new orders (TCV) for Euro 7.1 million (44% of total orders), of which Euro 4.4 million National and Euro 2.7 million International.

SIGNIFICANT EVENTS IN THE PERIOD

On January 14, 2020, the entirely held subsidiary Retelit Digital Services, in execution of the contract signed on October 22, 2019, signed the definitive contract to wholly acquire the share capital of Partners Associates S.p.A. (PA Group). Retelit Digital Services financed the transaction in part through own funds and partly through a loan issued at market conditions by a banking syndicate comprising as Agent bank Banca IMI S.p.A, and as lending banks Unione di Banche Italiane S.p.A., Intesa Sanpaolo S.p.A., MPS Capital Services per le Imprese S.p.A and Banco BPM S.p.A.. The purchase price was paid partly through Retelit S.p.A. shares, already in Retelit Digital Services' portfolio for an amount of Euro 6 million, and partly in cash.

On February 17, 2020, the wholly-owned subsidiary Retelit Digital Services signed a contract for the full acquisition of 100% of the shares with voting rights of Brennercom S.p.A. ("Brennercom"), the ICT and TLC provider based in Bolzano and the Munich-Tyrol-Milan axis market leader. The transaction will be finalised in July 2020. The purchase price may be paid, for an amount of up to Euro 15 million, in Retelit S.p.A. shares.

On February 24, 2020, Retelit signed a joint venture agreement with Libyan Telecommunications & Information Technology Company ("LPTIC"), which indirectly holds 14.37% of the share capital of Retelit - through which a company was incorporated under Italian law called Retelit Med S.r.l. (the "JV"), 50% owned by Retelit and 50% by LPTIC. The JV will develop commercial opportunities and synergies between Retelit and LPTIC in the Information Communication Technology sector, particularly with regards to ICT international services in the Mediterranean basin between Europe, Asia and Africa.

On February 26, 2020, Retelit S.p.A. became a shareholder of MIX S.r.l, with a 1.12% stake through an inter- company transfer following the acquisition of PA Group last January. On May 6, 2020 this investment rose to 3.28% following the acquisition of a further holding of 2.16%, sold by Utility Line Italia.

On March 20, 2020, the wholly-owned subsidiary Retelit Digital Services signed a loan contract with a banking syndicate for the acquisition of Brennercom S.p.A.. The loan of Euro 53.2 million was signed at market conditions syndicate of banks formed by Unione di Banche Italiane S.p.A., Intesa Sanpaolo S.p.A., MPS Capital Services Banca per le Imprese S.p.A. and Banco BPM S.p.A (with Banca IMI S.p.A. as arranger and agent). Financial support for the acquisition of Brennercom S.p.A. will be provided, for Euro 53.2 million, through the two additional credit lines signed and for the remainder through a credit line made available by the same bank syndicate as the loan signed on October 21, 2019.

On March 23, 2020, Retelit announced that, in accordance with the latest Prime Ministerial Decree dated March 22, 2020, which introduced new measures to contain Covid-19 contagion in Italy, all Group companies will continue as usual their operations, as they are included among those permitted ("Annex 1", ATECO codes 61 and 62).

On March 23, 2020, the wholly-owned subsidiary Retelit Digital Services, in accordance with Article 102, paragraph 1 of the CFA and Article 37 of the Issuers' Regulation, announced the decision to promote a partial voluntary public purchase offer pursuant to Articles 102 and subsequent of the CFA on a maximum 11,875,000 ordinary Retelit shares, equal to 7.23% of Retelit share capital.

On March 23, 2020, the Board of Directors of Retelit approved, in accordance with Article 2.6.2., No. 1, letter

1. of the Regulation of markets organised and managed by Borsa Italiana S.p.A., a change to the calendar of key corporate events planned for 2020, announced on January 29, 2020. The amendment concerns the postponement from April 24, 2020 to June 24, 2020 of the Shareholders' Meeting that will be called, inter alia, for the review of the financial statements at December 31, 2019, in view of the health emergency relating to COVID-19 (Coronavirus) and the rules issued by Decree Law No. 18 of March 17, 2020 ("Cura Italia" Decree Law).

The Board of Directors also established the new payment dates for the ordinary dividend from the 2019 net profit, whose distribution shall be proposed to the above-stated Shareholders' Meeting, equalling - gross of legal withholdings - Euro 0.02 per share, for a total amount of Euro 3.28 million. The date of dividend coupon No. 4 was in fact scheduled for June 29, 2020, with payment date of July 1, 2020. Shareholders of the Issuer at the end of the accounting day of June 30, 2020 (record date) shall have the right to receive a dividend.

SUBSEQUENT EVENTS

As part of the integration between the two groups, Retelit and PA Group on May 4, 2020 launched the rebranding of the Retelit logo, bringing together all of the Group companies in order to increase the sense of belonging of its employees and to convey to the outside market the concept of a single provider of a range of expertise.

OUTLOOK FOR THE CURRENT YEAR

The new 2020-2024 Business Plan, approved by the Board of Directors on March 12, 2020, and presented in detail to the financial community on March 18, in addition to the continuity with the current strategy, brings as a further upside the external line growth due to the acquisition of PA Group and Brennercom and the related synergies that the Company intends to develop by proposing a joint and direct offer to the Infrastructure and Managed Services Business market. The plan also envisages organic growth for all three Groups through further development of the Business segments of both RDS and PA Group and Brennercom and acquisition of market share in the domestic and international wholesale segments, leveraging the AAE- 1 cable system and international partnerships.

The Plan sets out the achievement of the following targets by 2024:

• Forecast revenues of Euro 232-242 million
• EBITDA of Euro 87-92 million
• NFP (net cash) of between Euro 5-10 million

The guidance forecasts for 2020 revenues of between Euro 165 and 175 million and EBITDA of between Euro 51 and Euro 56 million. At balance sheet level, investments are confirmed in the range between Euro 28 and Euro 33 million, while the negative NFP is expected to be in the range between Euro 140 and Euro 145 million at year-end, considering the loan recently disbursed for the purchase of PA Group.

On the basis of the Q1 2020 results and the operating and financial data at period end, the Directors, also considering the challenging environment caused by the Covid-19 pandemic, expects that the guidance objectives announced to the market on March 12, 2020 are achievable both at operating and balance sheet level, although in the lower part of the range, both in terms of the operating and financial results, subject to the need to constantly monitor any impact which the current general economic crisis may have on Customer payment times and, therefore, on the capacity to generate Group operating cash, also in terms of upcoming measures to be issued by the Italian government.

In addition, the announced corporate transactions, the partial voluntary public purchase offer on Retelit shares by the subsidiary Retelit Digital Services and the acquisition of Brennercom - in addition to the proposed dividend payment - are still expected to be executed within the reported timeframe.

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This press release contains forward-looking statements concerning plans, opinions or current Group expectations in relation to results and other aspects of the activities and strategies of the Group. Readers of

this press release should not place an undue reliance on such forward-looking statements as results may differ significantly from such forecasts due to a number of factors, most of which are outside of the Group's control.

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The 2020 First Quarter Report is not audited and is available according to the applicable legal conditions at the registered office, on the "1Info" storage mechanism authorised by Consob at www.1info.it, and in the "Investors / Investor Relations / Financial Statements and periodic reports" section of the company website at www.retelit.it.

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Mr. Mirko Endrizzi, as Executive Officer for Financial Reporting, declares, in accordance with paragraph 2 of Article 154-bis of the CFA, that the accounting information contained in this press release corresponds to the underlying accounting documents, records and accounting entries.

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The 2020 first quarter results will be illustrated on May 13, 2020 at 5PM in a conference call involving the Chairman of the Company, Dario Pardi and the Chief Executive Officer, Federico Protto. The details for participation in the conference call are as follows:

• for Italy: [phone]
• for the United Kingdom: [phone]
• for the United States (local number): [phone]
• for the United States (green number): [phone]

The support documents will be made available on the website at the beginning of the conference call.

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It is also announced, following on from that announced on March 12, 2020, that the Board of Directors of Retelit today amended the terms and conditions of the proposal, to be submitted to the Shareholders' Meeting of June 24, 2020, of a request for the authorisation to purchase and dispose of treasury shares in accordance with Articles 2357 and 2357-ter of the Civil Code, in addition to Articles 132 of Legislative Decree No. 58/1998 ("CFA") and 144-bis and subsequent of the regulation adopted with Consob Motion No. 11971/1999 ("Issuers' Regulation"), following the revocation, for the part not yet executed, of the authorisation by the Shareholders' Meeting on April 24, 2019.

In particular, the amendment concerns (i) the addition, among the possible purposes of the transactions of purchase/disposal of treasury shares, of the purpose of investment, and (ii) the minimum and maximum consideration for purchases made through a public offer, which is proposed to alter from 20% (lower or higher) than the reference price that the security records in the trading session on the day prior to the completion of the transaction (i.e., the announcement of the offer), to 20% compared to the weighted average of the official prices of the security in the three months prior to the announcement of the offer, with the further limit that the consideration may not in any case deviate, lower or higher, by more than 50% against the reference price that the security records in the trading session on the day prior to the announcement of the offer.

For purchases made according to means other than public purchase or exchange offers, the consideration proposed and authorised to date by the Shareholders' Meeting remains applicable, i.e. it may not be more than 20% below or above the share price recorded during the trading session of the day before each transaction, subject to compliance with the terms, conditions and requirements established by applicable domestic and European regulations and applicable market practices.

All other terms and conditions of the proposal to authorise the purchase and disposal of treasury shares announced in the afore-mentioned press release of March 12 remain unchanged.

Retelit does not currently hold treasury shares, while the wholly-owned subsidiary Retelit Digital Services holds a total of 3,849,828 Retelit shares, corresponding to 2.34% of Retelit's share capital.

The illustrative report of the Board of Directors of Retelit shall be made available to the public according to the terms and means set out in the applicable regulation.

Retelit Group

Retelit is the Italian leader in constructing tailor-made digital transformation projects, executed on entirely Group-managed platforms. In our 20 years we have been the ideal partner for enterprises, the public sector and operators seeking to tackle head-on the challenges of innovation, thanks to a range which covers the entire value chain of ICT and digitalisation services. The combination of Retelit's proprietary assets (a comprehensive fiber optic network in Italy and across the world and a nationwide Data Center network) and the innovation and digital expertise of PA Group (becoming part of the Retelit Group in 2020) has created a unique player in Italy which can offer integrated digital solutions, from infrastructure to data management and from networks to applications. Retelit has been listed on the Italian Stock Exchange since 2000 and on the STAR segment since September 26, 2016.

Investor Relations	Retelit Communication
Dario Pardi	Letizia Cilente
Tel. [phone]	Mob. [phone]
[e-mail]	[e-mail]
CDR Communication	[e-mail]
Vincenza Colucci
Mob. [phone]
[e-mail]

Institutional Media Relations	Media Relations ICT
CDR Communication	Laura Poggi
Angelo Brunello	Tel. [phone]
Mob. [phone]	[e-mail]
[e-mail]	Francesca Negri
	Tel. [phone]
	[e-mail]

The Income Statement, Balance Sheet and Cash Flow Statement of the Retelit Group are attached.

Consolidated income statement

(Euro thousands)	Q1 2020	Q1 2019
Revenues	31,404	15,836
Other income	2,747	1,184
TOTAL REVENUES AND OPERATING INCOME	34,150	17,020
Purchase of raw materials and services	(15,616)	(7,828)
Personnel costs	(8,082)	(2,005)
Other operating costs	(379)	(503)
EBITDA	10,074	6,684
Amortisation, depreciation and write-downs of tangible
and intangible assets and right-of-use	(6,524)	(5,168)
Other provisions and write-downs	(301)	-
EBIT	3,249	1,516
Financial income	237	83
Financial charges	(860)	(193)
Investment Charge	-	-
PRE-TAX PROFIT	2,626	1,406
Income taxes	(282)	(82)
Deferred tax income/(charge)	(24)	-
NET PROFIT FOR THE PERIOD	2,320	1,324
Group net profit	2,313	-
Minority interest result	6	-
Profit/(loss) recognised to Net Equity to be recognised to
the Income Statement	(625)
Profit/(loss) recognised to Net Equity not to be recognised
to the Income Statement
Comprehensive profit for the year	1,695	-
Group net profit	1,688	-
Minority interest result	6	-

Consolidated balance sheet

(Euro thousands)	31/03/2020	31/12/2019
Network infrastructure	132,109	125,960
Property, plant and equipment	3,015	-
Other tangible assets	2,481	1,018
Concessions, licenses, trademarks & similar rights	3,004	2,817
Right-of-use	70,614	67,036
Goodwill	70,502	-
Investments measured using the equity method	90	83
Investments measured using the equity method Historical Cost	-	-
Investments measured at fair value	309	-
Deferred tax assets	14,241	12,373
Other non-current assets	506	593
Non-current financial assets	220	-
Other non-current financial assets from Group companies	-	-
Other intangible assets	1,638	0
TOTAL NON-CURRENT ASSETS	298,728	209,880
Trade receivables, other receivables and other current assets	57,736	35,473
Tax receivables, VAT receivables and current direct taxes	2,773	511
Cash and cash equivalents	43,135	24,454
Current financial assets	43	-
Other current financial assets from Group companies	0	(0)
Inventories	678	-
TOTAL CURRENT ASSETS	104,365	60,438
TOTAL ASSETS	403,092	270,318
Share capital issued	144,209	144,209
Net equity reserves and net result	23,674	7,698
Net profit for the period	2,313	10,877
TOTAL GROUP SHAREHOLDERS' EQUITY	170,196	162,783
Minority interest share capital, net equity reserves and net result	99	-
Minority interest net profit	6	-
TOTAL MINORITY INTERESTS SHAREHOLDERS' EQUITY	105	-
Non-current financial liabilities	87,201	236
Non-current leasing financial payables	10,952	14,567
Post-employment benefits and employee provisions	7,112	1,820
Provisions for risks and future charges	1,927	1,620
Deferred tax liabilities	5,773	5,743
Liabilities from non-current contracts	23,994	24,543
Non-current financial liabilities vs Group companies	-	-
Other non-current liabilities	8,686	-
TOTAL NON-CURRENT LIABILITIES	145,645	48,529
Current financial liabilities	562	633
Current leasing financial payables	12,241	5,714
Trade and other payables and other current liabilities	66,803	47,472
Current financial liabilities vs Group companies	-	-
Provisions for risks and future charges - short-term	-	-
Tax payables, VAT payables and current direct taxes	2,836	489
Liabilities from current contracts	4,704	4,698
TOTAL CURRENT LIABILITIES	87,145	59,006
TOTAL LIABILITIES	403,092	270,318

Consolidated cash flow statement

(Euro thousands)	31/03/2020	31/03/2019
Net Profit	2,320	1,324
Adjustments for:
Asset amortisation & depreciation	6,524	5,168
Other provisions and write-downs	301	0
Changes in post-employment benefit provisions	9	43
Change in Provisions for risks and charges	(188)	110
Interest and financial charges matured	(622)	(110)
Interest and financial charges received/(paid)	73	0
Taxes paid	192	82
LTI Plan Provision	60	0
Adjustment of investments valued at equity	0	(30)
CASH FLOW GENERATED (ABSORBED) FROM OPERATING ACTIVITIES	8,669	6,587
(Increase)/Decrease of inventories	(368)	0
(Increase)/Decrease trade receivables and other financial assets	2,523	(5,275)
(Increase)/Decrease tax receivables, VAT receivables and direct taxes	(990)	(1,024)
(Increase)/Decrease trade payables and deferred revenues	(5,941)	(2,579)
(Increase)/Decrease tax payables, VAT payables and current direct taxes	(2)	(85)
NET CHANGES IN CURRENT ASSETS AND LIABILITIES AND OTHER CHANGES	(4,778)	(8,963)
CASH FLOW GENERATED (ABSORBED) FROM OPERATING ACTIVITIES	3,891	(2,376)
CASH FLOW FROM INVESTING ACTIVITIES
(Investments) in network infrastructure and other property, plant and equipment	(3,426)
(5,099)
Divestments from network infrastructure and other property, plant and equipment	130	0
Change due to monetary effects of investments	0	631
(Investments) in Concessions, licences and similar rights & rights-of-use	(622)	(465)
Divestments from Concessions, licences and similar rights & rights-of-use	176	47
Cash flows from business combinations	(49,719)	0
Investments valued under the equity method	(6)	0
Investments measured at fair value	14	0
Change due to monetary effects of investments	(1,340)	0
Net investments in other non-current assets	165	(12)
CASH FLOW GENERATED (ABSORBED) FROM INVESTING ACTIVITIES	(54,629)	(4,898)
CASH FLOW FROM FINANCING ACTIVITIES
Net (increase)/decrease financial assets	0	(27)
Net increase/(decrease) financial liabilities	72,046	0
Increase/(Decrease) current lease payables	(2,627)	(1,381)
Drawdown (repayment) loans	0	(3,264)
Share capital and reserves changes	0	0
Purchase of treasury shares	0	0
Distribution dividends	0	0
CASH FLOW GENERATED (ABSORBED) FROM FINANCING ACTIVITIES	69,419	(4,672)
TOTAL CASH FLOWS	18,681	(11,946)
CASH & CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	24,454	47,355
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	43,135	35,410

Consolidated Net Financial Position

COMPOSITION (Euro/thousands)	Balance at	Balance at	Changes
31.03.2020	31.12.2019
A. Cash	43,135	24,454	18,681
D. Liquidity	43,135	24,454	18,681
E. Current financial receivables	43	0	43
G. Current portion of non-current debt	12,803	6,347	6,456
I. Current debt	12,803	6,347	6,456
J. Net current financial debt I-E-D	-30,375	-18,107	-12,268
K. Non-current bank payables	98,153	14,803	83,350
N. Non-current debt	98,153	14,803	83,350
O. Net debt J+N	67,779	-3,304	71,083