Servizi Italia S p A : Half-year Financial Report as at 30 June 2023

Half-year Financial Report

as at 30 June 2023

SERVIZI ITALIA S.P.A.

Via S. Pietro, 59/B

43019 Castellina di Soragna (PR) - ITALY

Tel. [phone] - [e-mail] www.servizitaliagroup.com

Table of Contents

GENERAL INFORMATION
Company officers and corporate information	3
Group structure	4

INTERIM REPORT

5

HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE GROUP AS AT 30 JUNE 2023

Accounting schedules	17
Explanatory Notes	21

CERTIFICATION OF THE HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
PURSUANT TO ART. 154 BIS OF ITALIAN LEGISLATIVE DECREE 59/98	49

INDEPENDENT AUDITORS' REPORT

50

Servizi Italia Group - Half-year Financial Report as at 30 June 2023

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COMPANY OFFICERS AND CORPORATE INFORMATION

Board of Directors (in office until approval of the Separate Financial Statements as at 31 December 2023)

Name and Surname	Position
Roberto Olivi (*)	Chairman
Ilaria Eugeniani (*)	Deputy Chairman
Michele Magagna (*)	Director
Umberto Zuliani	Director
Anna Maria Fellegara(1)	Independent Director
Benedetta Pinna(1)	Independent Director
Antonio Aristide Mastrangelo(1)(2)	Independent Director
(1) Member of the Governance and Related Parties Committee; (2) Lead Independent Director
(*) Members of the Executive Committee

Board of Statutory Auditors (in office until approval of the Separate Financial Statements as at 31 December 2025)

Name and Surname	Position
Antonino Girelli	Chairman
Gianfranco Milanesi	Standing auditor
Elena Iotti	Standing auditor
Lorenzo Keller	Alternate Auditor
Valeria Gasparini	Alternate Auditor
Supervisory Body (in office until 2 February 2025)
Name and Surname	Position
Veronica Camellini	Chairman
Antonio Ciriello	Member
Elena Martelli1	Member
1Substituted Francesco Magrini on 26 May 2023

Independent Auditors (in office until approval of the Separate Financial Statements as at 31 December 2023)

Deloitte & Touche S.p.A. - Via Tortona, 25 - 20144 Milan

Registered offices and company information

Servizi Italia S.p.A. Via S. Pietro, 59/b - 43019 Castellina di Soragna (Parma) - Italy Tel.[phone], Fax[phone], website: www.servizitaliagroup.com; Share Capital: Euro 31,809,451 fully paid-up

Tax code and Parma Register of Companies no. 08531760158; Certified email: [e-mail]

Founded: 1986

Listing segment: Euronext STAR Milan

Ordinary Share ISIN codes: IT0003814537, BLOOMBERG: SRI IM, REUTERS: SRI.MI

LEI Code: 815600C8F6D5ACBA9F86

Investor Relations

Pietro Giliotti (IRM)

e-mail:[e-mail]- Tel. [phone], Fax [phone]

Servizi Italia Group - Half-year Financial Report as at 30 June 2023

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GROUP STRUCTURE

Servizi Italia S.p.A., registered office in Castellina di Soragna (Parma, Italy), listed in the Borsa Italiana Euronext STAR Milan segment, is the leading Italian operator in the supply of integrated services for the wash-hire and sterilisation of textile materials and surgical instruments for hospital facilities. With a technologically advanced production platform broken down into laundering facilities, textile sterilisation centres, surgical instrument sterilisation centres and numerous wardrobes, the Company and its Italian and overseas subsidiaries forming the Servizi Italia Group, mainly provide their broad and diversified range of services for public and private healthcare facilities in central and northern Italy, in the state of São Paulo in Brazil, in Turkey, India, Albania and Morocco.

As at 30 June 2023, the Servizi Italia Group included the following companies:

	Company name		Registered office		Share capital		Interest
				of equity
	Parent Company and Subsidiaries
							investments
	Servizi Italia S.p.A.	Castellina di Soragna (Parma) - Italy	EUR	31,809,451	Parent Company
	Ekolav S.r.l.	Lastra a Signa (Florence) - Italy	EUR	100,000	100%
	Wash Service S.r.l.	Castellina di Soragna (Parma) - Italy	EUR	10,000	90%
	Steritek S.p.A.	Malagnino (Cremona) - Italy	EUR	134,500	95%
	San Martino 2000 S.c.r.l.	Genoa - Italy	EUR	10,000	60%
	SRI Empreendimentos e Participações L.t.d.a.	City of São Paulo, State of São Paulo -	BRL	217,757,982	100%
	Brazil
	Lavsim Higienização Têxtil S.A.	São Roque, State of São Paulo - Brazil	BRL	32,330,000	100%(*)
	Maxlav Lavanderia Especializada S.A.	Jaguariúna, State of São Paulo - Brazil	BRL	2,825,060	100%(*)
	Vida Lavanderias Especializada S.A.	São Roque, State of São Paulo - Brazil	BRL	3,600,000	100%(*)
	Aqualav Serviços De Higienização Ltda	Vila Idalina, Poá, State of São Paulo -	BRL	15,400,000	100%(*)
	Brazil
	Ankateks Turizm İnşaat Tekstil Temizleme	Ankara - Turkey	TRY	85,000,000	55%
	Sanayi ve Ticaret Ltd Şirketi
	Ergülteks Temizlik Tekstil Ltd. Sti.	Smyrna - Turkey	TRY	1,700,000	57.5%(**)
	Ankateks Tur. Teks. Tem.Sanve TIC. A.s. -
	Olimpos Laundry Teks.Tem. Hizm. Ve Tur. San.	Antalya -Turkey	TRY	10,000	51%(**)
	Tic. LTD.Sti IS Ortakligi

(*) held through SRI Empreendimentos e Participações Ltda

(**) held through Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi

Below are the associates and jointly-controlled companies, measured using the equity method in the consolidated financial statements:

	Company name							Interest of equity
	Associates and Jointly-Controlled		Registered office			Share capital
					investment
	Companies
	Shubhram Hospital Solutions Private Ltd.		New Delhi - India	INR	362,219,020	51%
Servizi Sanitari Integrati Marocco S.a.r.l.	Casablanca - Morocco	MAD	122,000	51%
SAS Sterilizasyon Servisleri A.Ş.	Istanbul - Turkey	TRY	36,553,000	51%
Arezzo Servizi S.c.r.l.	Arezzo - Italy	EUR	10,000	50%
PSIS S.r.l.	Padua - Italy	EUR	10,000,000	50%
Steril Piemonte S.r.l.	Turin - Italy	EUR	4,000,000	50%
AMG S.r.l.	Busca (Cuneo) - Italy	EUR	100,000	50%
Finanza & Progetti S.p.A.	Vicenza - Italy	EUR	550,000	50%
Sanitary cleaning Sh.p.k.	Tirana - Albania	LEK	2,798,800	40%
Iniziative Produttive Piemontesi S.r.l.	Turin - Italy	EUR	2,500,000	37.63%
Piemonte Servizi Sanitari S.c.r.l.	Turin - Italy	EUR	10,000	30%(*)
	Saniservice Sh.p.k.		Tirana - Albania	LEK	2,745,600	30%
	Brixia S.r.l.		Milan - Italy	EUR	10,000	23%

1. The 15.05% indirect shareholding held through Iniziative Produttive Piemontesi S.r.l. should be added to this.

Servizi Italia Group - Half-year Financial Report as at 30 June 2023

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INTERIM REPORT

This consolidated half-yearly financial report as at 30 June 2023 was prepared in compliance with the International Financial Reporting Standards (hereinafter "IFRS" or "International Accounting Standards") endorsed by the European Commission, in force as at 30 June 2023, and was drafted pursuant to art. 154-ter of Italian Legislative Decree no. 58 of 24 February 1998 and in compliance with CONSOB regulation no. 11971 of 14 May 1999 and subsequent amendments.

This half-year financial report includes the half-year condensed consolidated financial statements as at 30 June 2023 prepared in compliance with IAS 34 on interim financial reporting, as approved by Regulation (EC) No. 1606/2002. In order to also allow for a better evaluation of the economic and financial performance, the following summary tables show some "Alternative performance indicators", not provided by the IFRS International Accounting Standards. The footnotes of said tables indicate the calculation method used and the composition of these ratios, in line with the guidelines of the European Securities and Market Authority (ESMA).

Main consolidated income statement figures

The table below presents a comparison of the main consolidated income statement figures as at 30 June 2023 with the results as at 30 June 2022 (in thousands of Euros).

	(thousands of Euros)		30 June		30 June		Change		% change
		2023		2022
	Revenues	143,846	134,042	9,804	7.3%
	EBITDA(a)	36,115	29,475	6,640
	EBITDA %	25.1%	22.0%				3.1%
Operating profit (EBIT)	7,363	1,193	6,170
Operating profit (EBIT) %	5.1%	0.9%				4.2%
	Profit (loss)	2,882	1,945	937
Profit (loss) %	2.0%	1.5%				0.6%

1. Group management has defined EBITDA as the difference between the value of sales and services and operating costs before depreciation, amortisation, write-downs, impairment and provisions.

Main consolidated statement of financial position figures

The table below presents a comparison of the main consolidated statement of financial position figures as at 30 June 2023 with the figures as at 31 December 2022 (in thousands of Euros):

	(thousands of Euros)		30 June		31 December		Change		% change
		2023		2022
	Net operating working capital(a)	1,167	(9,005)	10,172	-113.0%
	Other current assets/liabilities(b)	(9,753)	(7,263)	(2,490)	34.3%
Net working capital	(8,586)	(16,268)	7,682	-47.2%
Non-current assets - medium/long-term provisions	270,071	268,740	1,331	0.5%
	of which Rights of use under IFRS 16	29,342	28,210	1,132	4.0%
Net invested capital	261,485	252,472	9,013	3.6%
Shareholders' equity (B)	136,433	133,473	2,960	2.2%
Net financial debt(d) (A)	125,052	118,999	6,053	5.1%
	of which Financial liabilities under IFRS 16	31,745	30,582	1,163	3.8%
Net invested capital(c)	261,485	252,472	9,013	3.6%
	Gearing [A/(A+B)]	47.8%	47.1%
Debt/Equity (A/B)	91.7%	89.2%

Servizi Italia Group - Half-year Financial Report as at 30 June 2023

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