SOCIETÀ EDITORIALE IL FATTO S.P.A.:

The Board of Directors approves the Half Year Financial Report at June 30, 2022

• Value of production of Euro 17,408 thousand (Euro 20.222 thousand at June 30, 2021)
• EBITDA of Euro 566 thousand (Euro 3,450 thousand at June 30, 2021)
• EBIT amounting to Euro 2,437 thousand (Euro 862 thousand at June 30, 2021)
• Net result of Euro 1,900 thousand (Euro 504 thousand at June 30, 2021)
• Negative net financial position (cash) equal to Euro 566 thousand (negative – cash – equal to Euro 1,672 thousand at December 31, 2021)
• Shareholders' equity of Euro 2,712 thousand (Euro 4,586 thousand at December 31, 2021)

Rome, 30 September 2022 - The Board of Directors of SEIF S.p.A. (the "Company" or "SEIF") media content provider and publisher of several editorial and multimedia products, a company whose shares are traded on Euronext Growth Milan, a multilateral trading facility organised and managed by Borsa Italiana S.p.A. and Euronext Growth Paris, announces that, today, the Board of Directors approved the half year financial report for the first half of 2022, ended June 30, 2022, drafted according to the Euronext Growth Milan Issuers' Regulations, in accordance with National Accounting Standards and subject to voluntary limited audit.

Cinzia Monteverdi, President e CEO of SEIF, stated: “The year we are currently experiencing has been marked by turbulent geopolitical tensions exacerbated by the outbreak of the conflict in Ukraine, elements that have contributed to generate a very complex macroeconomic scenario. The difficult economic situation, worsened by the general increase in inflation, has adversely affected demand in the sector in which we operate. Furthermore, rising energy and raw material costs have additionally affected our printing expenses and margins. The moment we are facing is among the most challenging since SEIF's establishment, and we remain focused on the careful management of the Company and committed to building its future. The new strategic lines chart the path for recovery as early as the three-year period of the new business plan 2023-2025 and are represented by new "School" project to be launched in the fall, digital transition and consequent optimization of the distribution plan at newsstands. These will be some of the cornerstones on which the new business plan that will be approved at the end of October will rest. We are confident of our potential, and the new business plan guidelines aim to convert this potential into tangible economic results as early as 2023”.

Financial highlights:

(Euro thousand)
	30.06.2022	% production value	30.06.2021	% production value
Production value	17,408	100.00%	20,222	100.00%
EBITDA(*)	566	3.25%	3,450	17.06%
EBIT(**)	(2,437)	(14.00%)	862	4.26%
EBT(***)	(2,459)	(14.12%)	843	4.17%
Net result	(1,900)	(10.92%)	504	2.49%

(*) EBITDA is defined as: net income for the year, adjusted for the following components: (i) income taxes for the year, (ii) financial components, and (iii) depreciation and amortization of tangible and intangible assets, write-downs, and other provisions.

(**) EBIT is defined as: result for the year, adjusted for the following components: (i) income taxes for the year, (ii) financial components.

(***) EBT is defined as: result for the year, adjusted for the following components: (i) income tax for the year.

In the first six months of 2022, the value of production stood at Euro 17,408 thousand compared to Euro 20,222 thousand in the same period of 2021; EBITDA stood at Euro 566 thousand compared to Euro 3,450 thousand, representing a margin of 3.2% of the value of production in the first half of 2022, compared to 17% in the same period of 2021; EBIT stood at Euro 2,437 thousand compared to Euro 862, or -14% and 4.2% of the value of production, respectively.

Income statement:

(Euro thousand)	Financial year
	30.06.2022	% revenues of production value	30.06.2021	% revenues of production value
Production value
1) revenues from sales and services	14,075	80.85%	16,980	83.97%
2) variations of inventory of raw and auxiliary materials, consumables and supplies	64	0.37%	-44	-0.22%
4) increases in fixed assets for internal works	3,111	17.87%	3,161	15.63%
5) other revenues	157	0.90%	124	0.61%
Total (A)	17,408	100%	20,222	100%

The table shows a decrease in revenues from sales and services of Euro 2,905 thousand, or about 17%, and in Value of Production of Euro 2,814 thousand, or 13.92%. The decrease in Value of Production is mainly influenced by the lower volume of sales and service revenues reported in the first half of the year. Increases in internal fixed assets mainly refer to internal costs for the creation of original video content for which the Company retains ownership of all economic exploitation rights and development costs inherent in investments intended for digital and technological transition as well as the new business unit development project in the training sector.

A.1 Revenues from sales and services	Value at 30.06.2022	% on revenues	Value at 30.06.2021	% on revenues	variat.	Var. %
Publishing sector	10,872	77.24%	12,744	75.05%	-1,872	-14.69%
Media content sector	1,375	9.77%	2,009	11.83%	-635	-31.59%
Advertising sector	1,828	12.99%	2,227	13.11%	-399	-17.90%
Total	14,075	100.00%	16,980	100.00%	-2,906	-17.11%

Overall, publishing revenues in the first half of the year under review decreased by more than 14% compared to those in the first half of 2021 as a result of a reduction in the average number of copies sold at newsstands both for the daily newspaper and, consequently, for the collateral products composed of the Paper First series and the monthly FQ Millennium; media content revenues showed an overall decrease of about 31% compared to the first half of 2021 mainly due to the postponement of exploitation requests from TV broadcasters as a result of reduced advertising investments; advertising revenues, amounting to Euro 1.828 thousand, decreased by nearly 18% as a result of the negative impact on advertising investments of the Russia-Ukraine conflict.

Net Financial Position	30.06.2022	31.12.2021
Current Financial Receivables
Liquidity - cash and cash equivalent	(2,453,440)	(3,863,126)
Short term financial debt
Short-term financial debt	616,397	610,109
Net current financial debt	(1,837,043)	(3,253,017)
Non current financial debt
Non current financial debt	1,271,367	1,581,146
Net financial position - NFP	(565,676)	(1,671,871)
Days Sales Outstanding (DSO)	35	45
Average payment days (DPO)	72	69

Current Net Financial Position, Euro (1,837) thousand, is composed of cash and cash equivalents net of the "within year" portion of the Unicredit loan. The Unicredit loan of original Euro 2,500,000 thousand, taken out in June 2020 and intended for investment, with repayment in 48 months plus 12 months of preamortization, is being regularly amortized and the total outstanding principal amount is Euro 1,888 thousand. The loan has a floating rate, and the Company has hedged the interest rate risk by entering into an interest rate cap derivative. Under no circumstances will the instrument generate any further price changes for the Company until the loan is repaid. 

The investment program is ongoing as per the Company's plans.

Below is an analysis of cash flows for the first half of 2022, compared with those for the same period in the previous year.

Cash flows:

Cash flows
(Euro thousand)
	30.06.2022	30.06.2021
Loss (profit) for the year before income taxes, interest, dividends	-2,437	862
Adjustments for non-monetary items	3,466	2,991
Changes in net working capital	1,532	1,833
Other changes	-299	-661
Cash flow from operations (A)	2,262	5,025
Cash flow from investing activities (B)	-3,366	-3,879
Cash flow from financing activities (C)	-305	23
Increase (decrease) of cash and cash equivalents (A ± B ± C)	-1,408	1,169
Cash and cash equivalent at the beginning of the financial year	3,112	3,264
Cash and cash equivalent at the end of the financial year	1,704	4,433
Changes on cash and cash equivalent	-1,408	1,169

Key consolidated balance sheet and financial results as of June 30, 2022:

The following is information regarding key balance sheet indicators as of June 30, 2022, compared with December 31, 2021.

Financial Balance Sheet
Uses			30.06.2022	31.12.2021	Sources		30.06.2022	31.12.2021
Intangibles fixed assets			9,363,665	8,923,166	Share capital		2,501,000	2,501,000
Tangible fixed assets			149,673	169,888	Reserves		3,097,944	3,072,684
Fixed financial assets			1,604,410	969,405	Profit (loss) carried forward		(987,264)	(1,156,051)
					Profit (loss) for the year		(1,900,155)	168,787
	Fixed asset		11,117,748	10,062,459	Shareholders' equity		2,711,525	4,586,420
Cash on hand and in banks			178,528	93,823	Consolidated liabilities		4,987,591	4,998,800
Deferred cash			5,103,421	6,552,775
Immediate cash			1,704,375	3,111,950	Current liabilities		10,404,956	10,235,787
	Current liabilities		6,986,324	9,758,548	Liabilities		15,392,547	15,234,587
	Invested Capital		18,104,072	19,821,007	Financing capital		18,104,072	19,821,007

 

	30.06.2022	31.12.2021
Intangibles fixed assets	9,364	8,923
Tangible fixed assets	150	170
Fixed financial assets	855	841
Fixed asset	10.369	9.934
Inventory	179	94
Trade receivables	2.917	4.251
Trade payables	-4.528	-3.942
Net operating working capital	-1,432	402
Other current assets	2,187	1,679
Other current liabilities	-5.261	-5.683
Net working capital	-4,507	-3,602
Provisions for risks	-664	-687
Employee severance indemnity	-3,052	-2,731
Net capital Invested	2,146	2,915
Shareholder's equity	2,712	4,586
Cash at bank and in hand	-1,704	-3,112
Securities and other financial receivables (adjusted)	- 749	- 751
Payables to banks	1,888	2,191
Other financial payables	-	-
Net financial position	-566	-1,672
Shareholders' equity-net financial position	2,146	2,915

Shareholders' Equity decreased by Euro 1,875 thousand, mainly due to the loss recorded in the first half of 2022. Shareholders' Equity Reserves amounted to Euro 3,098 thousand and consisted of the Extraordinary Reserve of Euro 3,695 thousand, the Legal Reserve of Euro 500 thousand, the Negative Reserve for treasury stock in portfolio of Euro 1,138 thousand, and the Reserve for expected cash flow hedging transactions of Euro 32 thousand.

Gross investments in intangible assets amounted to euro 3,370 thousand essentially due to the production of TV content and investments in technological innovation.

In addition, the Company made gross investments in tangible assets amounting to euro 17 thousand.

Amortization for the year pertaining to intangible assets amounted to euro 2,889 thousand while depreciation of tangible assets amounted to euro 37 thousand. 

With regard to financial fixed assets, the statement of Invested Capital shows an adjusted amount of the outstanding amounts of asset management with regard to the funds managed by Banca Fideuram (equal to Euro 750 thousand and free from encumbrances), which can be liquidated at the Company's request, and are therefore included in the item "Other Securities and Financial Receivables (adjusted).

Significant events in the six months ended June 30, 2022

All of SEIF's revenue lines, since the outbreak of the Russia-Ukraine conflict, have experienced a decrease due essentially to the multiple factors inherent in the impact on the economy of the conflict itself, which have affected almost all productive sectors as well as the propensity and, more realistically, the spending capacity of end consumers. In parallel, industrial costs increased related to higher paper prices. The combination of these factors negatively affected the result for the first half of 2022.

The crisis resulting from the war conflict, has surprisingly accelerated the general trends in the publishing market, registering a considerable increase in paper costs which, moreover, will have further growth in printing costs in anticipation as a result of the rising energy prices

The Company has kept the structure fully operational, continuing in the use of the smart working tool to an extent agreed with the workers, without using social shock absorbers, such as the redundancy fund.

Significant events occurred after June 30, 2022

The Company, in the months following June 30, 2022, recorded growth in some indicators such as the number of subscriptions, newsstand sales, and witnessed a slight recovery in the advertising market. Production and commercial activities continued smoothly, allowing the maintenance of market positioning and all technological infrastructure development activities as well as the strengthening of the organization and technical structure necessary to continue the development of new projects.

Business Outlook

The global macroeconomic scenario and industrial cost trends do not allow the Company to make predictions about the end of the complex national and international economic backgrounds. However, the Company is taking all possible actions to keep business volumes in line with its positioning and market share currently covered, while maintaining the resulting production programs. For this reason, the Board of Directors believes it is essential to aim quickly at the new business plan to protect the Company and the potential value to be expressed, with the hope that 2023 will see the expected recovery.

Additional information

In addition to the financial information referred to in the preceding points, the income statement, balance sheet and cash flow statement are hereby attached.

Altre informazioni

The Half-Year Financial Report as of June 30, 2022 is available to the public at the company's registered office and on the website www.seif-spa.it, in the investor relations/corporate documents section. The report of the independent auditors KPMG S.p.A. will be made available to the public as soon as it is released.

***

SOCIETA? EDITORIALE IL FATTO S.P.A. (SEIF) is an independent media company, founded in Rome in 2009 and led by Cinzia Monteverdi, President and CEO. The company publishes several editorial and multimedia products, including Il Fatto Quotidiano, founded by Antonio Padellaro and edited by Marco Travaglio, the news website ilfattoquotidiano.it and the monthly magazine FQ Millennium, edited by Peter Gomez, and the publishing house Paper First, edited by Marco Lillo. SEIF has recently embarked on a process of diversification to become more and more of an all-round media content provider, launching a strategy to develop its products in a digital and data-driven key and to produce TV with the LOFT business unit.

For further information: Press Office: Close To Media – Società fondata da Elisabetta Neuhoff Via Caradosso 8 – 20123 Milano Tel: +39 02 7000 6237  Enrico Bandini mail: enrico.bandini@closetomedia.it Tel: +39 335 8484706 Matilde Francesconi mail: matilde.francesconi@closetomedia.it Tel: +39 337 1524898

Euronext growth Advisor Alantra Capital Markets Via Borgonuovo, 16 – 20121 Milano tel. +39 02 63671613 Stefano Bellavita mail: stefano.bellavita@alantra.com SEIF - Investor relations 06 32818514 Cinzia Monteverdi (CEO) ir@seif-spa.it Luigi Calicchia (CFO) l.calicchia@seif-spa.it

The Ordinary Balance Sheet, Ordinary Income Statement and Cash Flow Statement of the Company are hereby attached.

1. Ordinary Balance Sheet

	30/06/2022	31/12/2021
Assets
B) Fixed assets
I – Intangible fixed assets	-	-
1) start-up and capital costs	474,353	563,425
4) concessions, licenses, trademarks and similar rights	35,778	61,607
6) assets under construction and payments on account	1,218,969	223,662
7) other	7,634,565	8,074,472
Total intangible fixed assets	9,363,665	8,923,166
II – Tangible fixed assets	-	-
4) other assets	149,673	169,888
Total tangible fixed assets	149,673	169,888
III – Financial fixed assets
2) receivables
d-bis) other receivables	1,562,291	961,902
due within the next year	1,346,155	751,266
due after the next year	216,136	210,636
Total receivables	1,562,291	961,902
4) active derivative financial instruments	42,119	7,503
Total financial fixed assets	1,604,410	969,405
Total fixed assets (B)	11,117,748	10,062,459
C) Current asset
I - Inventories
1) raw, subsidiary and consumable materials	22,094	1,797
4) finished products and goods	156,434	92,026
Total inventories	178,528	93,823
II - Receivables
1) trade receivables	2,916,699	4,250,922
due within the next year	2,916,699	4,250,922
5-bis) tax receivables	254,730	405,667
due within the next one year	254,730	405,667
5-ter) pre-paid taxes	1,208,232	649,803
5-quater) from third parties	372,262	416,813
due within the next one year	372,262	416,813
Total receivables	4,751,923	5,723,205
III – Financial assets not of a fixed nature
6) other assets	0	622,659
Total financial assets not of a fixed nature	0	622,659
IV – Cash and cash equivalents
1) bank and postal deposit	1,702,164	3,111,004
3) cash at bank and in hand	2,211	946
Total cash and cash equivalents	1,704,375	3,111,950
Total current assets (C)	6,634,826	9,551,637
D) Accrual and deferred income	351,498	206,911
Total assets	18,104,072	19,821,007
Liabilities
A) Shareholders' equity
I – Share capital	2,501,000	2,501,000
II – Share premium reserve	8,700	8,700
IV – Legal reserve	500,000	500,000
VI – Other reserves, indicated separately
Extraordinary reserve	3,694,856	3,694,856
Total other reserve	3,694,856	3,694,856
VII – Reserve for hedging operations of expected cash flows	32,011	5,702
VIII – Profit (loss) carried forward	(987,264)	(1,156,051)
IX - Profit (loss) of the year	(1,900,155)	168,787
X – Negative reserve for purchase of own shares	(1,137,623)	(1,136,574)
Total shareholders' equity	2,711,525	4,586,420
B) Provisions for risks and charges
2) tax provisions, including deferred tax liabilities	10,109	1,801
4) other	654,140	685,289
Total for risk and charges	664,249	687,090
C) Employee severance indemnity	3,051,975	2,730,564
D) Payables
4) bank financing	1,887,764	2,191,255
due within the next year	616,397	610,109
due after the next year	1,271,367	1,581,146
7) trade payables	4,527,605	3,942,364
due within the next year	4,527,605	3,942,364
12) tax payables	302,769	481,563
due after the next year	302,769	481,563
13) amounts payable to social security institutions	971,121	1,113,514
due within the next year	971,121	1,113,514
14) other receivables	2,300,702	2,571,708
due within the next year	2,300,702	2,571,708
Total receivables	9,989,961	10,300,404
E) Accrual and deferred income	1,686,362	1,516,529
Total liabilities	18,104,072	19,821,007

2. Ordinary Income Statement

	30/06/2022	30/06/2021
A) Production value
1) revenues from sales and services	14,074,876	16,980,396
2) variations of inventory of raw and auxiliary materials, consumables and supplies	64,408	(43,503)
4) increases in fixed assets for internal works	3,111,205	3,161,386
5) other revenues and income
other	157,138	123,662
Total revenue and income	157,138	123,662
Total production value	17,407,627	20,221,941
B) Cost of production
6) for raw and auxiliary materials, consumables and supplies	768,667	452,095
7) for services	8,557,113	9,137,932
8) for use of assets owned by others	941,919	849,383
9) for personnel
a) salaries and wages	4,597,085	4,351,912
b) social security	1,365,781	1,355,627
c) employee severance indemnity	349,842	254,122
e) other costs	117,845	85,062
Total personnel costs	6,430,553	6,046,723
10) ammortization, depreciation and impairment
a) depreciation of intangible fixed assets	2,888,570	2,423,288
b) depreciation of tangible fixed assets	37,407	45,420
d) depreciation of receivables included in current assets and cash and cash equivalents		40,000
Total amortization, depreciation and impairment	2,925,977	2,508,708
11) variations of inventory of raw and auxiliary materials, consumables and supplies	(20,297)	30,407
12) provisions for risks	77,447	79,319
14) other operating costs	163,649	254,926
Total of costs of the production	19,845,028	19,359,493
Difference between value and costs of production (A - B)	(2,437,401)	862,448
C) Financial income and expenses
16) other financial income		-
a) from receivables entered as fixed assets		-
From others	900	900
Total financial income from accounts receivable included in fixed assets from other financial income		-
c) from securities included in current assets other than equity investments	0	7,286
d) income other than the above		-
other	8
Total income other than the above	8	7,286
Total other financial income	908	8,186
17) interests and financial charges
other	21,534	27,125
Total interest and financial charges	21,534	27,125
17-bis) foreign exchange and gains and losses	557	218
Total financial income and expenses (15+16-17+-17-bis)	(21,183)	(19,157)
D) Value adjustment on financial assets
18) revaluations
c) of securities included under assets forming part of working capital which are not investments
Total revaluations
Total value adjustments to financial assets (18-19)
Result before taxes (A-B+-C+-D)	(2,458,584)	843,291
20) Current, deferred and prepaid taxes on the income of the year
current taxes		136,021
deferred and prepaid taxes	(558,429)	203,418
Total current, deferred and prepaid taxes on the income of the year	(558,429)	339,439
21) Profit (loss) for the year	(1,900,155)	503,852

1.Cash flow statement, indirect method

	Importo al 30/06/2022	Importo al 30/06/2021
A) Cash flows from operating activities (indirect method)
Profit (loss) for the period	(1,900,155)	503,852
Income taxes	(558,429)	339,439
Interest expense/(income)	21,183	19,157
1) Profit (loss) for the year before income taxes, interest, dividends and gains/losses on disposal	(2,437,401)	862,448
Adjustments for non-monetary items that did not have a counterpart in net working capital
Provisions to funds	540,163	522,438
Depreciation of fixed assets	2,925,977	2,468,708
Total adjustments for non-monetary items not recorded as part of net working capital	3,466,410	2,991,146
2) Cash flow before changes in net working capital	1,028,739	3,853,594
Changes in net working capital
Decrease/(Increase) in inventories	(84,705)	73,910
Decrease/(Increase) in receivables from customers	1,334,223	1,064,547
Increase/(Decrease) in trade payables	585,241	541,591
Decrease/(Increase) in accrued income and prepaid expenses	(144,587)	(88,852)
Increase/(Decrease) in accrued expenses and deferred income	169,833	40,096
Other decreases/(Other increases) in net working capital	(327,198)	202,193
Total changes in net working capital	1,532,807	1,833,485
3) Cash flow after changes in net working capital	2,561,546	5,687,079
Other adjustments
Interest receveid/(paid)	(21,183)	(19,157)
(Income taxes paid)	(27,857)	(338,642)
(Use of funds)	(249,901)	(304,254)
Total other adjustments	(298,941)	(662,053)
Cash flow from operating activities (A)	2,262,605	5,025,026
B) Cash flow from investing activities
Tangible fixed assets
(Investments)	(17,192)	(29,683)
Intangible assets
(Investments)	(3,370,718)	(3,353,157)
Financial assets
(Investments)	(600,389)	(496,900)
Financial assets not held as fixed assets
Divestments	622,659
Cash flow from investing activities (B)	(3,365,640)	(3,879,740)
C) Cash flow from financing activities
Third-party funds
Financing		1,980
Financial repayments	(303,491)
Equity
Sale/(purchase) of treasury shares	(1,049)	21,301
Cash flow from financing activities (C)	(304,540)	23,281
Increase (decrease) in cash and cash equivalents (A ± B ± C)	(1,407,575)	1,168,567
Cash and cash equivalents at the beginning of the period
Bank and post office deposits	3,111,004	3,260,371
Cash and cash equivalents	946	4,016
Total cash and cash equivalents at beginning of the period	3,111,950	3,264,387
Cash and cash equivalents at the end of the period
Bank and post office deposits	1,702,164	4,428,095
Cash and cash equivalents	2,211	4,859
Total cash and cash equivalents at end of period	1,704,375	4,432,954

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