DIGITAL360: the Board of Directors approved the consolidated half-year financial report at 30 June 2021

PRESS RELEASE

THE BOARD OF DIRECTORS OF DIGITAL360 S.P.A. APPROVES THE CONSOLIDATED HALF-YEARLY

FINANCIAL REPORT AT JUNE 30, 2021:

RESULTS STILL GROWING STRONGLY: TURNOVER +28%, EBITDA +33%,

PFN ESSENTIALLY ZEROED OUT.

Group results for the first half of 2021:

• Consolidated revenues of €16.2 million, an increase of 28%, compared to the same period in 2020;
• EBITDA1 of Euro 3.7 million, up 33%, compared to Euro 2.8 million in the same period of 2020;
• EBIT and Adjusted2 EBIT of €2.3 million and €2.8 million, respectively, both up almost 50% from 30 June 2020;
• Net income and Adjusted net income of €1.4 million and €1.9 million, respectively, compared to €1.1 million and €1.46 million at 30 June 2020;
• Net Financial Position substantially reduced to zero (€0.3 million), compared to €3.6 million at 30 June 2020 and €1.4 million at 31 December 2020.

Milan, 20 September 2021 - DIGITAL360 S.p.A., an innovative SME listed on the AIM Italia market of Borsa Italiana, ("D360" or the "Company"), announces that the Board of Directors, which met today, reviewed and approved the consolidated half-year financial report as of 30 June 2021, prepared in accordance with the AIM Italia Issuers' Regulations and in compliance with Italian accounting standards.

"The analysis of the half-yearly results of the last two years shows that we have more than doubled our EBITDA, and its ratio to revenues has gone from 11% to 23%", says Andrea Rangone, President of DIGITAL360. "In just one and a half years we have zeroed the Group's net financial position starting from a value of over 6 million at December 31, 2019, and this despite investments and acquisitions made for several million euros; since the listing, in June 2017, the company's capitalization has quadrupled. We are particularly satisfied with the results achieved, because they are rooted in the entrepreneurial vision that has always guided us and in the investments made in past years. We are confident for the new market scenario that we see in front of us, strongly

• The EBITDA and EBIT ratios are not identified as an accounting measure under national and international accounting standards and should not be considered as an alternative measure for evaluating the performance of the group's operating results.

• Adjusted amounts are reclassified to neutralise the effects of amortisation relating to consolidation differences at 30 June.

positively impacted by the shake-up of digitalization induced by the pandemic and the National Recovery and Resilience Plan, and satisfied because this year we became a Benefit Company, convinced that our growth can be achieved in an increasingly sustainable and inclusive manner, with positive impacts on the entire ecosystem that surrounds us."

"The scalability of the business and the ability to contain costs with respect to the evolution of revenues has allowed us to grow margins higher than revenues, thus repaying the investments in technological innovation made in recent years, and thanks to which we have been able to increasingly develop highly innovative and engineered service models, which have allowed us to extend the business model especially towards the market of small and medium-sized companies - says Gabriele Faggioli, CEO of DIGITAL360 -. We are increasingly focusing on an innovative approach, strongly based on proprietary assets (in addition to the DIGITAL360 Network, we also have knowhow based on technological platforms delivered in As-A-Service mode), which is revolutionizing the reference markets.

"Underlying this significant growth is also the significant increase in Annual Recurring Revenue by subscription, which at the end of the first half reached 7.7 million euros, an increase of around 50% compared to the first half of 2020," says Raffaello Balocco, CEO of DIGITAL360. "The growth we achieved in the half-year, which was entirely organic, takes on even greater significance for us if read in light of the fact that an important and historic line of business for the Group, that relating to the organization of events in presence, has not yet been able to count on resuming operations, due to the restrictions linked to the health emergency. And we are convinced that the recently finalized acquisitions will further boost the Group's revenue and margin growth".

Main consolidated results for the half-year

Revenues earned for the six months ended June 30, 2021 amounted to €16.2 million, an increase of 28% compared to €12.7 million in the corresponding period of 2020.

Value of production came close to 17 million euros, compared with 13.4 million euros in the previous half-year.

EBITDA amounted to 3.7 million euros, up 33% from 2.8 million on June 30, 2020.

EBIT was €2.3 million and consolidated net income was €1.4 million, compared to €1.5 million and €1.1 million, respectively, in the corresponding period of 2020.

Adjusted EBIT amounted to €2.8 million, an increase of 48% compared to the value at 30 June 2020.

Adjusted consolidated net income was €1.9 million, compared to €1.46 million in the first half of 2020.

Regarding the main balance sheet and financial data, it should be noted the Group's Net Financial Position (debt) went from € 1.4 million at 31 December 2020 to € 0.3 million at 30 June 2021.

With regards to the NFP, it is worth remembering that at the end of the half-year period, a residual portion of the convertible bond (POC) amounting to 1.56 million euros was still outstanding: considering the conversion ratio corresponding to 1.60 euros per share, at the current share price (well above 4.00 euros) the conversion option is highly convenient, i.e., "in the money", with a virtually positive NFP (credit) for more than one million euros in case of full exercise of the conversion option.

These are positive results, considering in the first half of the year (i) the Group sustained a cash out for investments totalling Euro 2.4 million (of which Euro 1.4 million for M&A), (ii) the Group settled, for a total of approximately 0.9 million euros, IRES (corporate income tax) and IRAP (regional tax on productive activities) balances and payments on negligible accounts from the previous year, and (iii) the growth in volumes, with the inevitable increase in trade receivables and payables, partly curtailed the positive contribution of net working capital to the generation of liquidity.

Consolidated Shareholders' Equity strengthened, rising from €9.8 million at December 31, 2020 to €12.7 million at June 30, 2021.

A summary of the main economic and financial indicators is provided below.

The reference scenario

The Italian context is still clearly characterized by a lower average level of digitalization compared to the most advanced European countries. But precisely in such an underdeveloped context, the pandemic has accelerated - in a sudden and unpredictable way - some dynamics that had occured for years. It has revealed the strategic importance of information and communication technologies (ICT), pushed digital transformation of businesses and public administrations, induced a change - on the part of individuals and organizations - of many habits and behaviors, making the importance and effectiveness of many tools, services and digital communication systems tangible. All of this has concretely accelerated the market's adoption of many services that DIGITAL360 has been offering for years and in which many resources have been invested - such as digital events, online communication, digital lead generation, remote advisory - and has made aware the importance of themes such as smart working, cybersecurity, industry 4.0, the development of digital skills, digital marketing, and remote selling - areas in which the Group has always operated.

The healthcare emergency has therefore not only had a contingent impact on the business, but has encouraged its evolution towards a model that had already been in development for some time, accelerating its effects thanks to the greater digital sensitivity of the market and the greater need for innovative services.

The results achieved by the Group in the first half of 2021 should be interpreted in this context: the significant increase in revenues from the most innovative, digital, remote and recursive services more than offset the decline in revenues from physical events.

If the increase in innovative services is firmly established in the business of the Group, establishing groundwork for further growth in the future, the resuming of missed activities and events as a result of the current vaccination campaign could favorably give, in the near future, further impetus to revenues.