Intred S p A : The Board of Directors approved the half-year report as at 30 june 2022.

Press Release

THE BOARD OF DIRECTORS APPROVED

THE HALF-YEAR REPORT AS AT 30 JUNE 2022

DOUBLE DIGIT GROWTH IN PROFITABILITY

• REVENUES at € 23.0 million, up 21.2% (vs € 19.0 million 1H2021)
• EBITDA1 at € 9.6 million, up 22.4% (vs € 7.8 million 1H2021); EBITDA margin at 41.1%.
• EBIT at € 6.0 million, up 14.5% (vs € 5.3 million 1H2021); EBIT margin at
  25.8%.
• Net profit at € 4.3 million, up 12.5% (vs € 3.8 million 1H2021)
• Net financial debt at € 9.6 million compared to a positive € 5.4 million as at 31 December 2021
• Capital expenditure of € 18.6 million, mainly on network development, reaching over 8,400 km at the end of June 2022

Brescia, 29 September 2022 - The Board of Directors of Intred S.p.A. ("Intred" or the "Company"), a telecommunications operator listed on the EGM market of Borsa Italiana (ITD.MI) since July 2018, examined and approved the Half-Year Report as at 30 June 2022, prepared in accordance with Italian GAAP and subject to a limited audit.

Daniele Peli, Co-Founder and Chief Executive Officer of Intred S.p.A., commented: "The positive figures of this half-yearconfirm the validity of our business model and strategy. The positive effects of the first Schools call for tenders are certainly visible in the results achieved and the extension of the proprietary network in the Lombardy Region. With the recent signing of the second call for tenders, we expect a further increase in the infrastructure in the area served by Intred as well as a more extensive presence thanks to the possible contracts that will be closed with local entities. We are confident in a further boost of our results also in the second half of the year, a growth supported by the sales of ultra-widebandservices and the investments underway".

1 EBITDA: Alternative Performance Indicator: EBITDA (Earning Before Interest Taxes Depreciations and Amortisations) is an alternative performance indicator not defined by Italian GAAP but used by the company's management to monitor and evaluate its operating performance, as it is not affected by volatility due to the effects of the different criteria for determining taxable income, the amount and characteristics of capital employed as well as the relative amortisation and depreciation policies. This indicator is defined for Intred as Profit/(Loss) for the period before depreciation, amortisation and impairment of tangible and intangible assets, financial income and expenses and income taxes.

MAIN ECONOMIC AND FINANCIAL RESULTS AS AT 30 JUNE 2022

RECLASSIFIED INCOME STATEMENT

			2022	%		2021	%			DELTA	%
	Revenues From Sales And Services			22,947,07					18,938,41					4,008,66
				7		(98.3%)			3		(97.9%)			4		(21.2%)
Other Revenues	398,974	(1.7%)	403,983	(2.1%)	(5,009)	(1.2%)
	TOTAL VALUE OF PRODUCTION					(100.0%			19,342,39		(100.0%					(20.7%
				23,346,051		)			6		)			4,003,655		)
	TOTAL PRODUCTION COSTS			9,747,735		(41.8%)			7,916,002		(40.9%)			1,831,733		(23.1%)
	VALUE ADDED								11,426,39
				13,598,316		(58.2%)			4		(59.1%)			2,171,922		(19.0%)
	GROSS OPERATING MARGIN															(22.4%
				9,587,003		(41.1%)			7,831,145		(40.5%)			1,755,858		)
	OPERATING INCOME			6,034,000		(25.8%)			5,268,864		(27.2%)			765,136		(14.5%)
	INCOME BEFORE TAXES			6,144,939		(26.3%)			5,353,658		(27.7%)			791,281		(14.8%)
Current/deferred/prepaid taxes	1,877,912	(8.0%)	1,559,923	(8.1%)	317,989	(20.4%)
	OPERATING PROFIT			4,267,027		(18.3%)			3,793,735		(19.6%)			473,292		(12.5%)

The value of production as at 30 June 2022 amounted to € 23.3 million, up by 20.7% compared to the same period of the previous year, while the value of sales revenue in the first six months of the year stood at € 23.0 million, up by 21.2% compared to the same period of the previous year (€ 19.0 million).

The increase in turnover was mainly driven by sales of ultra-wideband connections (FTTH), which amounted to € 13.2 million, up 47% on the same period last year.

Going into detail, the most significant growth was reported in services with recurring fees, the company's core business, which account for 86% of turnover, equal to € 19.4 million, an increase of 11%. Revenues from so-called"one-off" products and services increased by almost 194% to € 3.2 million, mainly as a result of the call for tenders for schools.

In terms of geography, the most significant increases, in absolute value, are recorded in the provinces of Milan (+98%), Monza (+91%), Lecco (+77%), Cremona (+76%), Como (+73%) and Bergamo (+24%).

The call for tenders for schools is strongly pushing the expansion of sales in provinces where the company had a limited presence.

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In terms of infrastructure, in the first half of 2022, the company's own fibre-optic network increased from over 7,300 km as of 31 December 2021 to over 8,300 km as of 30 June 2022, with a percentage increase of 15%.

In terms of infrastructure, in the first half of 2022, the company's own fibre-optic network increased from over 7,300 km as of 31 December 2021 to over 8,400 km as of 30 June 2022, with a percentage increase of 15%.

In terms of the type of customer, the greatest growth comes from sales to the Public Administration, with a rise of 384%, thanks to the effects of the call for tenders for schools, which alone is worth € 3.3 million and to which significant resources have been allocated, leading to the activation of over 1,700 schools as of 30 June 2022.

The expansion in the number of users with data lines continues, reaching more than 46,000 at 30 June 2022, up 5% compared to the same period last year.

The "churn rate" on turnover remains excellent at 4.7%.

The gross operating margin (EBITDA) realised in the first six months of the year was € 9.6 million, up 22.4% from € 7.8 million in the previous year and with an EBITDA margin of 41.1% (40.5% as at 30 June 2021).

Operating Income (EBIT) was € 6.0 million, up 14.5% from € 5.3 million as at 30 June 2021 and with an EBIT margin of 25.8%.

The Net income as at 30 June 2022 was € 4.3 million, up 12.5%. compared to € 3.8 million in the same period of the previous year.

BALANCE SHEET

The net financial position amounted to € 9.6 million, compared to a positive € 5.4 million as at 31 December 2021.

Cash and cash equivalents amounted to € 15.7 million, essentially unchanged from 31 December 2021. Short-term bank debts amounted to € 13.8 million against € 6.3 million at the end of 2021, while medium- and long-term debts amounted to € 11.5 million, up due to investments made in support of the Schools call for tenders, compared to € 3.6 million as at 31 December 2021.

Net equity as at 30 June 2022 amounted to € 43.6 million, up from € 40.3 million as at 31 December 2021.

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INVESTMENTS AND NETWORK DEVELOPMENT

Capital expenditure in the first half of 2022 amounted to € 18.6 million, mainly focused on the development of the backhauling and fibre access network in the FTTH mode in the Lombardy region. The strong acceleration of investments was necessary to meet the commitments related to the Schools call for tenders, which can subsequently be used to activate connections for other local PA users, for business and residential customers. The majority of investments in Intred's network infrastructure is made up of tangible fixed assets (78% of the total investments dedicated to the network and 79% of the overall total), consisting of civil works for laying, fibre optic cables, shelters, manholes and electronic equipment; the portion of investments in intangible fixed assets - equal to 21% of the network investments - is instead made up of acquisitions of multi-year rights of use for fibre optic cables and/or cable ducts, in IR (Indefeasible Right of Use) mode.

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MAIN EVENTS DURING THE PERIOD

On 27 May 2022 Intred announced its attendance in the public session for the bids evaluation 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 tender for the supply of ultra-wideband Internet connectivity at 1 Gbits for over 1,200 schools in the Lombardy region not included in the previous tender.

On 30 May 2022, Intred announced, pursuant to Article 84-bis of Consob Regulation No. 11971/1999, the allocation of rights relating to the "2021-2023 Stock Grant Plan" (the "Stock Grant Plan" or the "Plan") approved by the Shareholders' Meeting on 29 April 2021.

On 7 June 2022, Intred, following the announcement made on 27 May 2022, announced that it had received from Infratel Italia S.p.A. (an in-house company of the Ministry of Economic Development) the awarding of the tender for the provision of ultra-wideband Internet connectivity for over 1,200 school sites in the Lombardy region that were not included in the previous tender.

MAIN EVENTS AFTER THE END OF THE PERIOD

On 12 July 2022, following the announcements made on 27 May and 7 June 2022, Intred announced that a number of appeals had been filed with the Lazio Regional Administrative Court (TAR) by a number of operators for the annulment of the awarding of certain lots in the tender for ultra-wideband internet connectivity services for the remaining schools in Lombardy. In this context, one player in particular appealed against the awarding of lot no. 2 assigned to the Company by Infratel Italia S.p.A.

On 28 July 2022 Intred, following up on its previous press release of 12 July 2022, announced that, with an order published today, the Lazio Regional Administrative Court rejected the application for precautionary injunction attached to the appeal filed by one of the

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Company's competitors in order to obtain the suspension of the effectiveness of the measure taken by Infratel Italia S. p.A. on 8 June 2022, by which Intred was awarded lot no. 2 of the tender for ultra-wideband Internet connectivity services for the remaining schools in Lombardy. In particular, the Lazio Regional Administrative Court fully endorsed the defence arguments put forward by Intred and the other operators involved, concluding - following an assessment of the merits of the case - that "there is no fumus boni iuris". An appeal against the aforementioned precautionary measure may be brought before the Council of State.

On 20 September 2022, in the presence of the Minister for Technological Innovation and Digital Transition, Vittorio Colao, and the CEO of Infratel Italia S.p.A., Marco Bellezza, Intred signed the Framework Agreement for the commencement of works relating to the awarding of the tender called "Schools call for tenders 2", for the provision of 1Gbits ultra- wideband internet connectivity services for over 1,200 schools in the Lombardy region not included in the previous tender.

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BUSINESS OUTLOOK FOR THE CURRENT FINANCIAL YEAR

The growth forecast for the remainder of the financial year is largely positive. In the second half of 2022 too, revenue growth will be supported by sales of ultra-wideband services. The company's development will be driven by the ongoing investment programme aimed at extending the network to the entire Lombardy region. We are therefore confident that the acceleration of results can continue in the second half of the year, especially thanks to the positive effects of the Schools calls for tenders; the constant growth in the number of customers and the good visibility on recurring revenues make us confident in achieving even more flattering results.

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FILING OF DOCUMENTATION

The documentation relating to the Half-Year Report as at 30 June 2020, 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 through publication on the institutional website www.intred.it, section "Investors/Financial Statements and Reports" and on the Borsa Italiana website www.borsaitaliana.it.

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

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