Half Year Financial Report at December 31st,

2020

(1st half of the financial year 2020/2021)

Digital Bros S.p.A.

Via Tortona, 37 - 20144 Milan, Italy

VAT Number and Tax Number 09554160151

Share capital: Euro 6,024,334.80 of which Euro 5,704,334,80 subscribed

Milan Register of Companies 290680-Vol. 7394 Chamber of Commerce 1302132

This report is available in the Investors section of the Company's website at www.digitalbros.com

Please note that this is an Italian to English translation and that the Italian version shall always prevail

in case of any discrepancy or inconsistency.

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Digital Bros Group Half Year Financial Report for the period ended December 31st, 2020

2

Contents

Board of Directors and Governance Structure

4

Half Year Report

6

1.

Group organization

6

2.

Video games market

10

3.

Performance indicators and seasonality effects

13

4.

Significant events of the reporting period

14

5.

Consolidated income statement at December 31st, 2020

17

6.

Consolidated financial position at December 31st, 2020

21

7.

Segment reporting

23

8.

Intercompany and related party transactions and atypical/unusual transactions

32

9.

Treasury shares

34

10.

Management of operational risks, financial risks and financial instruments

34

11.

Contingent assets and liabilities

34

12.

Subsequent events

34

13.

Outlook

35

14.

Other information

36

Condensed consolidated financial statements at December 31st, 2020

37

Consolidated statement of financial position at December 31st, 2020

39

Consolidated income statement at December 31st, 2020

40

Consolidated statement of comprehensive income at December 31st, 2020

41

Consolidated cash flow statement at December 31st, 2020

42

Consolidated statement of changes in equity

43

Consolidated statements prepared in accordance with CONSOB Resolution no. 15519

44

Notes to the condensed consolidated financial statements at December 31st, 2020

47

1.

Introductory note

48

2.

Consolidation methods

52

3.

Investments in joint-ventures and associated companies

53

Reconciliation of results for the period and equity of the parent company to those of the

4.

Group

54

5.

Analysis of the statement of financial position

56

6.

Analysis of the consolidated income statement

73

7.

Non-recurring income and expenses

75

8.

Information by operating segment

75

9.

Related party transactions

80

10.

Atypical or unusual transactions

81

Statement pursuant to Art. 154- bis (5) of the Consolidated Finance Act

82

Digital Bros Group Half Year Financial Report for the period ended December 31st, 2020

3

Board of Directors

Sylvia Anna Bartyan

Independent Director

Lidia Florean

Non - Executive Director

Abramo Galante

Chairman and Chief Executive Officer

Davide Galante

Non - Executive Director

Raffaele Galante

Chief Executive Officer

Susanna Pedretti

Indipendent Director

Stefano Salbe

Executive Director(1)

Laura Soifer

Indipendent Director (2)

Dario Treves

Executive Director

  1. Financial reporting manager pursuant to Art. 154 bis of Legislative Decree 58/98
  2. Lead Independent Director

Control and Risk Committee

Sylvia Anna Bartyan

Susanna Pedretti

Laura Soifer (Chairman)

Remuneration Committee

Sylvia Anna Bartyan

Susanna Pedretti (Chairman)

Laura Soifer

Board of Statutory Auditors

Gianfranco Corrao

Statutory Auditor

Carlo Hassan

Chairman

Maria Pia Maspes

Statutory Auditor

Daniela Delfrate

Substitute Statutory Auditor

Stefano Spiniello

Substitute Statutory Auditor

The Shareholders' Meeting held on October 28th, 2020 appointed the Board of Directors and Board of Statutory Auditors. The terms of the Directors and the Statutory Auditors will end within the Shareholders'

Meeting which will approve the financial statements as at June 30th, 2023.

On October 28th, 2020, the Shareholders' Meeting appointed Abramo Galante as Chairman of the Board of

Directors. On the same date, the Board of Directors appointed Abramo Galante and Raffaele Galante as

Chief Executive Officers. The CEOs were given appropriate powers.

On August 7th, 2007, the Board of Directors appointed Executive Director Stefano Salbe to the position of

financial reporting manager pursuant to Art. 154 bis of Legislative Decree 58/98 and gave him appropriate

powers.

Digital Bros Group Half Year Financial Report for the period ended December 31st, 2020

4

Auditors

Deloitte & Touche S.p.A.

On October 26th, 2012, the Shareholders' Meeting appointed Deloitte & Touche S.p.A, Via Tortona 25, Milan, as corporate auditors until the approval of the financial statements as at June 30th, 2021.

Other information

The publication of the Half Year Financial Report of Digital Bros Group for the six months period ended December 31st, 2020 was authorised by a resolution of the Board of Directors on March 9th, 2021.

Digital Bros S.p.A. is incorporated and operating in Italy. It is listed on the STAR segment of the MTA market operated by Borsa Italiana S.p.A..

Digital Bros Group Half Year Financial Report for the period ended December 31st, 2020

5

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Digital Bros S.p.A. published this content on 07 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 April 2021 07:59:00 UTC.