Press Release

INTRED S.P.A.: BOARD OF DIRECTORS APPROVES HALF-

YEARLY REPORT AS AT 30 JUNE 2021

SIGNIFICANT GROWTH IN REVENUES, DRIVEN BY RECURRING FEE

SERVICES, WHICH ACCOUNT FOR 92% OF REVENUES

SIGNIFICANTLY IMPROVED MARGINS AT 40.5%.

SOUND BALANCE SHEET AND FINANCIAL SITUATION THAT ALLOWS THE DEVELOPMENT OF THE BUSINESS TO CONTINUE WITH DETERMINATION

  • REVENUES at € 18.9 million
  • EBITDA1 at € 7.8 million (EBITDA margin 40.5%)
  • EBIT € 5.3 million (EBIT margin 27.2%)
  • Net profit € 3.8 million
  • Positive Net Financial Position (NFP) of € 1.2 million
  • Investments for € 6.5 million focused on developing the network, which has expanded to more than 4,200 km

Brescia, 29 September 2021 - The Board of Directors of Intred S.p.A. ("Intred" or the "Company"), a telecommunications operator listed on the AIM Italia market of Borsa Italiana (ITD.MI) since July 2018, examined and approved the Half-Year Report as at 30 June 2021, drafted in accordance with the AIM Italy Issuers' Regulation and in compliance with Italian accounting standards.

Daniele Peli, Co-Founder and CEO of Intred S.p.A., commented: "The very positive results of the first half of 2021, particularly satisfying to us, confirm Intred's growth path. The increase in margins was significant, up by more than 40%, combined with a further improvement in the already sound equity and financial situation. The company's development will be driven by the ongoing investment programme aimed at expanding the network throughout Lombardy. We are therefore confident that the

1 EBITDA: Alternative Performance Indicator: EBITDA (Earnings Before Interest Taxes Depreciations and Amortizations - Gross Operating Margin) represents an alternative performance indicator not defined by Italian accounting standards but used by the company's management to monitor and evaluate the operating performance of the itself, as it is not influenced by the volatility due to the effects of the various criteria for determining the taxable income, by the amount and characteristics of the capital employed as well as by the related amortization policies. This indicator is defined for Intred as Profit / (Loss) for the period gross of depreciation and write-downs of tangible and intangible assets, financial income and charges and income taxes.

acceleration in results will continue in the second half of the year, above all thanks to the positive effects of the Bando Scuole (Schools Call for Tenders), which were marginal in the first half of the year".

MAIN ECONOMIC AND FINANCIAL RESULTS AT 30 JUNE 2021

RECLASSIFIED INCOME STATEMENT

Preamble:

The company Qcom S.p.A. did not draft a half-yearly report at 30 June 2020; therefore, for the purposes of preparing these financial statements, comparative figures at 30/06/2020 were presented that are not immediately comparable with those at 30/06/2021, as they relate to two different realities (pre- and post-merger). For comparative purposes only, the change in the following is shown on a like-for-like basis, i.e. including Qcom S.p.A., only for revenue items in the first half of the year.

INCOME STATEMENT

30/06/2021

%

30/06/2020

%

Delta

%

Value of Production

19,342,396

100.0%

12,071,681

100.0%

7,270,715

60.2%

revenue from sales

18,938,413

97.9%

11,692,773

96.9%

7,245,640

62.0%

other revenue and income

403,983

2.1%

378,908

3.1%

25,075

6.6%

External costs

7,916,002

40.9%

5,029,174

41.7%

2,886,828

57.4%

GROSS MARGIN

11,426,394

59.1%

7,042,507

58.3%

4,383,887

62.2%

Personnel costs

3,595,249

18.6%

1,642,055

13.6%

1,953,194

118.9%

EBITDA

7,831,145

40.5%

5,400,452

44.7%

2,430,693

45.0%

Amortisation, depreciation

2,542,281

13.1%

1,570,560

13.0%

971,721

61.9%

Write-downs of current assets

20,000

0.1%

-

-

20,000

EBIT

5,268,864

27.2%

3,829,892

31.7%

1,438,972

37.6%

Net financial income / charges

84,794

0.4%

33,089

0.3%

51,705

156.3%

PRE-TAX PROFIT/LOSS

5,353,658

27.7%

3,862,981

32.0%

1,490,677

38.6%

Total taxes

-1,559,923

-995,216

-8.2%

-564,707

56.7%

REDDITO NETTO

3,793,735

19.6%

2,867,765

23.8%

925,970

32.3%

The value of production for the first half of 2021 amounted to € 19.3 million, while the value of sales revenue at 30 June 2021 was € 18.9 million, up 9% on a comparable basis including Qcom S.p.A. The best result was achieved on services with recurring fees, which account for 92% of sales, up 12.4%.

The growth in turnover was mainly due to sales of ultra-wideband connections (+19% to

  • 9.0 million) and voice & data services (+14% to € 3.7 million). As expected, broadband connections (-16%, in line with previous years) and FWA radio connections (-1%) decreased as the company is encouraging its customers to switch to fibre optic connections. There was a significant reduction in ancillary services (-10%), where many ex-QCOMone-off services that are no longer strategic for Intred are concentrated.

Pag. 2

In addition, there is a marked reduction in revenues from one-off products/services, -23%, as a result of the divestment of non-strategic,low-incomeex-QCOM activities (websites, web marketing, hardware sales, etc.), which, starting from the second half of 2020, were gradually no longer offered to the market. Sales of telephone traffic also fell by 12%, mainly due to users migrating to flat-rate and/or voice & data solutions).

€/million

1H2020

1H2021

YoY

Turnover

%

Turnover

%

Var.

21/20

Residential

3.6

20.8%

4.3

22.8%

19.7%

Professional

11.6

66.7%

12.1

63.8%

4.2%

P.A.

0.7

4.0%

0.8

4.4%

20.7%

Wholesale

1.5

8.5%

1.7

9.0%

14.6%

Total

17.4

100.0%

18.9

100.0%

8.9%

  • Revenue for the first half of 2020 including the results of Qcom S.p.A. for comparative purposes only

The greatest growth in the first half of the year came from sales in the residential sector, with the PER TE product line, up 19.7%. Sales in the Public Administration sector were also very positive, up 20.7%, also thanks to the indirect effects of the Schools call for tenders. Sales in the Wholesale sector also performed well, with an increase of 14.6%. The professional category registered the lowest percentage growth, + 4.2%.

The churn rate on sales was 4.5%.

In the first half of 2021, the number of users with data lines increased significantly, from approximately 34,300 at 30 June 2020 to approximately 43,700 at 30 June 2021, a rise of 13% compared to the same period last year.

The gross operating margin (EBITDA) achieved in the first six months of 2021 amounted to € 7.8 million and an EBITDA margin of 40.5%.

The operating result (EBIT) amounted to € 5.3 million with an EBIT margin of 27.2%.

The net result for the first six months of 2021 was € 3.8 million, compared with € 2.9 million in the first half of 2020.

Pag. 3

BALANCE SHEET

The net financial position was positive at € 1.2 million, compared to a positive € 0.4

million at 31 December 2020.

Cash and cash equivalents were largely unchanged at € 6.8 million compared to 31 December 2020. Medium- and long-term payables to banks amounted to € 3.6 million

compared to € 4.9 million at 31 December 2020; the short-term portion of payables to

banks amounted to € 2.0 million compared to € 1.5 million at 31 December 2020.

Shareholders' equity at 30 June 2021 amounted to € 35.5 million, up from € 32.3 million

at 31 December 2020.

INVESTMENTS AND NETWORK DEVELOPMENT

Capital expenditure in the first half of 2021 amounted to € 6.5 million, concentrated on

developing the FTTH and FTTC fibre-optic access network, mainly in the provinces of Brescia, Bergamo, Monza Brianza, Varese, Como, Lecco, Lodi and Milan.

In the first six months of 2021, the owned fibre optic network increased from 3,700 km at 31 December 2020, to over 4,200 km at 30 June 2021, with a percentage change of 28% compared to 30 June 2020 (3.300km).

***

MAIN SIGNIFICANT EVENTS OF THE PERIOD

On 12 February 2021, Intred announced that it participated in the public session of the opening of the envelopes by the Tender Commission appointed by Infratel Italia S.p.A. (an in-house company of the Ministry of Economic Development). The company obtained the best score in Lot 2 of the call for tenders for the provision of ultra-wideband Internet connectivity at 1 Gbits for 4,592 school sites in Lombardy.

On 1 March 2021 Intred, following the communication of 12 February 2021, informed that it has received a communication from Infratel Italia S.p.A. (in-house company of the Ministry of Economic Development) concerning the awarding of the tender for the provision of ultra-wideband Internet connectivity for 4,592 school sites in the Lombardy region.

On 25 May 2021 Intred and Etaeria - a subsidiary of Wiit S.p.A., one of the leading European players in the market of Cloud Computing services for enterprises, focused on the provision of continuous Hybrid Cloud and Hosted Private Cloud services for critical applications - announced that they had signed a three-year framework agreement for the provision of Cloud and Cyber Security services.

On 1 June 2021 Intred, following the signing with Infratel Italia S.p.A. (an in-house company of the Ministry of Economic Development) of the contract for the supply of ultra-wideband Internet connectivity to approximately 4,500 schools in Lombardy, announced that work to connect the schools to the fibre optic network began last May.

Pag. 4

On 21 June 2021, Intred announced that it had entered into a three-year agreement with Tim for the acquisition of the right of use (IRU) of dark fibre, which can be used throughout the country. The value of the transaction could reach EUR 12 million, depending on the activation costs and the types of lines purchased.

MAIN SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

There are no significant events to be reported after the end of the period.

***

FORESEEABLE BUSINESS OUTLOOK FOR THE CURRENT YEAR

The growth forecasts for the rest of the year are largely positive. In the second half of 2021 too, the increase in revenues will be supported by sales of ultra-wideband services and by the residential segment: the process of switching users from broadband connections to fibre optic connections continues, with greater customer satisfaction and growing profitability for the company. The company's development will be driven by the ongoing investment programme aimed at expanding the network to cover the whole of Lombardy. We are therefore confident that the acceleration of results will continue in the second half of the year, especially thanks to the positive effects of the Bando Scuole (Schools call for tenders), which were marginal in the first half of the year; the constant growth in the number of customers and the good visibility on recurring revenues allow us to be confident of achieving even better results.

***

FILING OF DOCUMENTATION

The documentation relating to the Half-Year Report as at 30 June 2021, required by current regulations, will be made available to the public at the Company's registered office (via Pietro Tamburini, 1, 25136 Brescia) as well as by publication on the institutional website www.intred.it, in the "Investors/Financial Statements and Reports" section.

***

This press release is online at www.1info.itand on the Issuer's website www.intred.it(Investors / Price Sensitive Press Releases section).

Intred Telecomunicazioni

Reference telecommunications operator in Lombardy founded in 1996 by Daniele Peli, the company's current Chairman and CEO, and listed on the Italian Stock Exchange AIM Italia market since 2018 (symbol: ITD.MI). With an optic fibre network of over 4,200 km, Intred provides ultra-broadband, broadband and wireless connectivity, landline telephone services, cloud services and related services for business and retail customers, the latter served with the EIR brand. Intred directly operates its own infrastructure to ensure efficiency, profitability, service quality and - thanks to a dedicated in-house call centre - excellent service levels for its users. Its high-value assets and consolidated, highly scalable business model, combined with a turnover of € 18.9 million as at 30 June 2021,

Pag. 5

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Intred S.p.A. published this content on 29 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2021 13:31:05 UTC.