SG S p A : Company Società Benefit S.p.A. – The BoD approves the consolidated half-yearly financial report

THE BOARD OF DIRECTORS OF SG COMPANY HAS APPROVED THE CONSOLIDATED HALF-YEAR FINANCIAL REPORT AS OF 30 JUNE 2021

THE GROUP RECEIVES CONFIRMATION FROM INVITALIA OF THE FINANCING OF

€ 2.5 MILLION

ORGANISATIONAL STRUCTURE AND GROUP GOVERNANCE MODIFIED

Main consolidated economic and financial results for the first half of 2021:

• Net revenues of € 3.2 million, compared to € 4.6 million at 30 June 2020
• Adjusted EBITDA of € -79 thousand, an improvement compared to € -2 million as of June 30, 2020
• Adjusted EBIT of Euro -417 thousand, an improvement on the Euro -2 million reported at 30 June 2020
• Net loss of €559 thousand, an improvement over the loss of €1.7 million at 30 June 2020
• Group net financial position of €2.2 million, an improvement over the €3.4 million at 31 December
  2020

Milan 29 September 2021 -SG Company Società Benefit S.p.A., one of Italy's top players in the Entertainment&Communication Industry, listed on the AIM market of Borsa Italiana (ticker: SGC), announces that the Company's Board of Directors, meeting in remote mode today, approved the consolidated half-yearly financial report as of 30 June 2021.

Consolidated results as of 30 June 2021

The first half of 2021 of SG Company SB S.p.A. closed with gross revenues of € 4 million (€ 5.6 million in the first half of the previous year) and the net result showed a loss of € 0.6 million, an improvement on a loss of € 1.7 million in the first half of 2020.

The Group shows a significant improvement in the business margin in relative terms, amounting to € 1.464 million (€ 1.290 million on 30 June 2020) and corresponding to 45% of net revenue (28% in the first half of 2020). The business margin, therefore, rose from 32.7% at 31.12.2021 (26.0% at 31.12.2019) to the current 36.6%, a change due mainly to the intense internal reorganization activity and a different product mix that sees the relative weight of M.I.C.E. decrease in favor of the implementation of the phigital service.

The gross operating margin adj. (EBITDA adj ) was negative and equal to €79 thousand, an improvement compared to € -2.040 million in the corresponding period of 2020.

The operating result adj. (EBIT adj) was negative and amounted to € 417 thousand, an improvement compared to € -2.070 million in the previous year.

The net financial position was positive (debt) and amounted to € 2.182 million, also an improvement compared to a positive net financial position (debt) of € 3.351 million on 31 December 2020.

Shareholders' equity amounted to € 1.039 million (€ -1.063 million in December 2020).

Significant events after the end of the period: Invitalia loan

SG Company Group is in the process of signing a loan from Invitalia for the subscription of Financial Instruments for the amount of € 2,500,000; the settlement of the transaction will be concluded within 10 days from today's date. Sinergie S.r.l., the beneficiary company of the financing in question, undertakes to allocate such resources to support the investments envisaged in the Industrial Plan. In addition, 15% of the value of the loan could be granted as a non-refundable amount if Sinergie S.r.l. and SG Company Group succeed in achieving certain objectives.

Changes in the organizational structure and corporate governance

We inform you that, having completed the design phase of the Business Plan and the capital increase, and following the actual establishment of the operating companies in the new business lines, in agreement with the Company, Dr. Elena Melchioni, as of today's date, leaves her powers and offices within SG Company SB S.p.A. and, as of 30 September 2021, also leaves her other offices within the Group to face new work challenges.

Stefano Ripamonti, Chief Sales Officer, also resigned with the termination of his employment on 15 October, as the new corporate structure no longer requires commercial centralization within the holding company.

SG Company SB S.p.A., thanking both the above-mentioned professionals for their professional contribution and the work carried out during the difficult period, wishes Mr. Ripamonti and Ms. Melchioni the achievement of new professional successes.

Taking note of the above events, the ordinary shareholders' meetings of Sinergie S.r.l. and + uno S.r.l. have been called for 30 September to vote Davide Ferruccio Verdesca as the new Sole Director of the two companies.

Foreseeable evolution of operations

In the first half of 2021, the Group is continuing to follow the guidelines set out in October 2020 in the 2021-2023 Business Plan, although it has become necessary to change the economic/financial targets and the choices in the area of organization and governance and to integrate business lines that are complementary to the SG Company world. Contrary to what had been hypothesized, the impact of Covid-19 on the events sector continued in a pervasive manner with severe pandemic containment measures imposed for a longer period than expected.

The business areas that we intend to integrate and strengthen are those aimed at the consumer world, an aspect already present in SG Company before Covid-19 through the label Centoeventi, which will be integrated. The company is also working to enter the sports events sector.

On the other hand, what has already been indicated in the Industrial Plan regarding the strengthening of partnerships linked to the world of live and digital events through ad hoc commercial agreements, or through direct investments, is confirmed.

Deposit of documents

This press release and the consolidated half-yearly financial report as of 30 June 2021 of SG Company SB S.p.A. are made available to the public at the Company's registered office in Piazza Guglielmo Oberdan 2/A, 20129 (MI) and on the website, in the Investor Relations - SG Company Società Benefit S.p.A.section.

The Group's reclassified income statement, balance sheet, and cash flow statement are shown below.

SG Company Società Benefit S.p.A. is a Digital Company, ISO 9001 certified and listed on the AIM market of Borsa Italiana (ticker: SGC), Technology segment, is an Innovative SME and, in keeping with its mission of "Sharing Growth", has also embarked on the ESG (Environmental, Social and Governance) path to ensure an increasingly future-oriented sustainable management of the Company, firmly believing in the value of business for the collective benefit. One of Italy's top players for over 20 years now in the Entertainment&Communication industry, it specializes in the areas of Digital & Live Communications, Hybrid Events, Video Production, Consumer Format, and Meetings & Events Industry. In its 2021-2023 Business Plan, it has embarked on a path of digital transformation, integrating a data valorization strategy on each business area thanks to the implementation of Marketing Technology solutions on every activity. Its distinctive positioning hinges on the synergy between data and content, as well as on the ability to offer a single direction over creativity, production and technology natively for each project, guaranteeing clients constant integration between physical and digital. The Company boasts a portfolio of high- standing clients at global level. It has planned, promoted and produced many successful national and international formats

such as Milano Food Week, Obecity, Sneakerness, Digital Design Days, Business Tech Forum and others.

For information
Francesco Merone (I.R.)	Roberta Sferrazza Papa (I.R. Junior)
[e-mail]	[e-mail]
	+ 39 3297194756
Nomad: Banca Profilo S.p.A.	Financial Media: IR Top Consulting
[e-mail]	Domenico Gentile - [e-mail]
[phone]	[phone]/4

RECLASSIFIED CONSOLIDATED INCOME STATEMENT OF THE GROUP

RECLASSIFIED CONSOLIDATED BALANCE SHEET OF THE GROUP