Itway S p A : Half Year Financial Statements as of June 30, 2021

Half-Year Management Report as of June

30, 2021

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Half-year Management Report as at June 30, 2021

Board of Directors

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

Name and last name	Position
Giovanni Andrea Farina	President and Chief Executive Officer
Cesare Valenti	Managing Director
Valentino Bravi	Independent Director
Piera Magnatti	Independent Director
Annunziata Magnotti	Independent Director

Board of Statutory Auditors

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

Name and last name	Position
Daniele Chiari	President
Silvia Caporali	Member
Rita Santolini	Member

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 firm 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.

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Half-year Management Report as at June 30, 2021

Activities and Structure of the Group

Following is the structure of the Itway Group at June 30, 2021:

ITWAY S.p.A.

Itway France S.A.S.		Business-e		4 Science S.r.l.		Itway RE S.r.l.
	Infrastrutture S.r.l.
100%			100%		100%
	30%
Itway Iberica S.L.		Itway MENA FZC		BE Innova S.r.l.		iNebula S.r.l. in
100%		17,1%		50%		liquidazione 75%
	Itway International					Idrolab S.r.l.
	S.r.l. 100%					10%
Itway Hellas S.A.		Itway Turkyie Ltd				Dexit S.r.l.
100%		100%				9%

The Company has its legal headquarters in Milan in Viale Achille Papa, 30 and its administrative headquarters in Ravenna in Via L. Braille, 15.

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Half-year Management Report as at June 30, 2021

Performance of the Group and the reference market

The accounting principles, the evaluation principles and the consolidation principles referred to in preparing the half-year financial statements as of June 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 Evolution of operations" and in detail in the Explanatory Notes. 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.

The Group continued also in the first half of 2021 its repositioning towards a digital product- oriented model focusing on higher value added business segments through three business units:

• Cybersecurity;
• Data Science;
• Safety.

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

Business unite areas:

• Itway S.p.A. is specialized 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)
• 4Science S.r.l. offers Data Science, Data Management and Repository data for the scientific research, cultural heritage and Big Data markets.
• 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 Innova is the Province of Trento for which it handles h24/365 Cybersecurity. Also worthy of mention is the strong partnership established with IBM, for which it is a Service Center for Information Security
• Be Innova also has in the pre-commissioning phase with some Veneto region healthcare boards, the Fire Department and the Trento Public Safety Answering Point a product called Smartys. Smartys is the industrial evolution of the ADAPT project co- financed with the Ministry of Education (MIUR). The focus of Smartys is to gather and manage biometric and environmental data to include in electronic health records of people with both public and private health insurance, in a fully secure mode and with the aid of wearable sensors and other IoT devices. In addition there is the Covid-19 App

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Half-year Management Report as at June 30, 2021

recently developed with the Bruno Kesler Foundation of Trento. The project was developed with a Security by design logic fully respecting privacy regulations and GDPR. SMARTYS are part of the emerging Health Data Security (HSD) segment of Cybersecurity.

General context and performance of the ICT Market: To the date of the writing of the current report, projections regarding the ICT market in 2021 that include the changed economic scenario following Covid-19 are available, and Assinform published them in May 2021. GDP in 2021 rebounded in the first two quarters of the year, by 4.8%, significantly higher than expected. For this reason, 5.9% growth is expected at the end of 2021 (source: Istat September 2021). The projections for the ICT sector show a solid rebound with 3.5% growth (Assinform 05/2021).

Following 19.5% growth in 2019 and 21% in 2020, double-digit growth is also expected in 2021 for Digital Enablers, the more innovative components of digital innovation, starting from Cloud, from Cybersecurity, IoT, AI, and collaborative and remote work platforms (including smart working)

There was a marked growth in the second quarter after a slight recovery in the first. There rebound was particularly strong in the services sector, which was most hit during the crisis, and a rise in industry, which in June recorded growth (+28.4%), while agriculture was stable (Source: Istat 09/2021).

Construction, which represented some 9% of Italian GDP in 2020, is another sector that saw solid growth in the first half of 2021. This sector is forecast to grow 8.9% this year (Source: ANCE February 2021). The over Euro 209 billion Recovery Plan will presumably support growth in this sector, along with infrastructure.

Market positioning: During the fiscal year, the Itway Group continued to invest in Cybersecurity, IoT, Artificial Intelligence (AI), and Big Data, all of which are connected. Furthermore, the repositioning in new product lines continued, aiming to replace lower-margin lines with higher value-added ones that also allow less use of working capital.

Group's industrial policy: The industrial policy of the Group continued to focus on higher value-added business lines represented by the new Business Unit described above.

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Half-year Management Report as at June 30, 2021