Annual Report 2021
Issuer: Exprivia
Website: www.exprivia.it
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Annual Report at 31 December 2021
Contents
Letter to Shareholders 4
Corporate Bodies 6
Directors' Report at 31 December 2021 7
Significant Group Figures and Result Indicators 7
Summary of the Operations in 2021 9
Significant Exprivia Figures and Result Indicators 10
Profile of Exprivia Group 13
Performance Trend of the Exprivia Group 27
Risks and Uncertainties 34
Material Events in 2021 37
Events after 31 December 2021 39
Corporate Governance and Ownership Structures 39
Non-financial Data Report 39
Exprivia's Stock Market Performance 39
Business Outlook 40
Investments 41
Management Training and Development 44
Staff and Turnover 46
Integrated Management System 47
Organisation, Management and Control Model (pursuant to Italian Legislative Decree 231/2001) 48
Inter-Company Relations 48
Relations with Related Parties 49
Report on Management and Coordination Activities 49
Group Relations with the Parent Company 50
Consolidated Financial Statements of the Exprivia Group at 31 December 2021 52
Consolidated Financial Statements at 31 December 2021 53
Explanatory Notes to the Consolidated Financial Statements of the Exprivia Group at 31 December
2021 59
Related Parties 118
Certification of the Consolidated Financial Statements pursuant to art. 154-bis of Italian Legislative
Decree 58/98 124
Independent Auditors' Report on the Consolidated Financial Statements of the Exprivia Group at
31 December 2021 125
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Annual Report at 31 December 2021
Statutory Auditors’ Report to the General Shareholders’ Meeting pursuant to art. 153 of Italian
Legislative Decree 58/98 ("T.U.F.") and art. 2429 of the Italian Civil Code. 132
Financial statements of Exprivia SpA at 31 December 2021 146
Explanatory Notes to the Separate Financial Statements of Exprivia SpA at 31 December 2021 152
Report on Management and Coordination Activities 152
Exprivia Shares held directly by members of the Board of Directors 190
Certification of the Financial Statements pursuant to Art. 154-bis of Italian Legislative Decree 58/98
226
Independent Auditors' Report on the financial statements of Exprivia SpA at 31 December 2021
227
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Annual Report at 31 December 2021
Letter to Shareholders
Dear Shareholders,
2021 was an extraordinary year which will be remembered as one of unimaginable events, immediately
following the pandemic that plagued humanity and still continues to claim victims worldwide.
We witnessed the storming of the US parliament, the halting of world trade - due to an ordinary accident in
the Suez Canal - the withdrawal of the West from Afghanistan that set the Afghan people and democracy
back a hundred years, the great global vaccination campaign, the launch of the green pass era.
The year 2021 will leave its mark on history, as will the present time, which is opening up with glimpses of
world war in the heart of Europe no less.
Within the smaller scope of our being a company and an economic player, Exprivia has continued its mission
of innovating its customers' business models through digital transformation, interpreting the greatest
changes underway. These transformations are now as inevitable as they are urgent: ecological and energy
transitions, Europe's various national versions of the NRRP which have become central to the social and
economic policies of each country.
We can certainly say that the market in which we operate is experiencing a privileged situation: we were able
to continue operating during the pandemic, thus ensuring the continuity of our customers' processes. Indeed,
it was precisely technology that enabled new approaches to service with remote working, while today we find
ourselves at the centre of the largest industrial plan that our country has seen since the Second World War.
And yet it was not an easy year for Exprivia due to the fact that the industrial affair that began with the
acquisition of Italtel in December 2017 came to an end. During 2021, we focused on consolidating the
positions we acquired in the market, supporting our customers in that recovery phase during which our
country's GDP has grown by more than 6%.
We can say that we have latched on to the economic recovery following the acute phase of the pandemic,
that we have managed to grow in line with the trends in the Italian digital market and, above all, that we have
preserved, or rather increased, our margins and, finally, reduced our debt, which, to tell the truth, has always
been within the parameters of Exprivia's size. It is precisely with solid industrial and financial fundamentals
that we are now preparing to relaunch our group, through new strategic lines of development that will see us
increasingly and better oriented towards the challenges that lie ahead: the digitalisation of the country, the
environmental challenges that can only be met by a strong political will and a conscious use of technology.
In this context, which is no ordinary one, we can and want to say it: we are really satisfied with the way 2021
ended for Exprivia SpA. We grew more than market analysts had assumed, recording +8% in revenues and
an EBITDA of 13.5% of value of production, above the averages for companies in our sector. Net financial
debt improved by as much as Euro 14 million to just over Euro 26 million. All this results in a bottom line of
Euro 10 million.
We are satisfied and therefore I would like to use this opportunity to thank our customers who have
maintained their confidence in our ability to support them in their business decisions, the more than two
thousand employees of our Group and the management supporting me every day in the strategies and their
implementation.
As a group with sound foundations and cohesive management, we are steering the future. It has never been
easy to make predictions, and is more difficult than ever today: the war in Ukraine has surprised us and left
us incredulous. We quickly stopped reading about pandemics and the NRRP to make room for daily war
bulletins. But we do not want to give up the responsibility of developing the future, our future.
Once again, I can say that we started the new year 2022 with an awareness of our strengths and with a
financial structure that will allow us to continue investing in growth: innovation in services, in solutions,
continuous training of our employees. We are looking very closely at Artificial Intelligence, at how pervasive it
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Annual Report at 31 December 2021
is becoming in the service of human life, and we are counting on serving this unstoppable trend with
conviction. We pay attention to the centrality of systems and information security, which has become a
central asset in all exchanges between people and things. We are increasing our presence in the Space
economy with rising investments in skills and technologies. We continue to invest in the new Healthcare, with
Telemedicine at the forefront, and in the Utilities sector.
We want to become a reference point for Public Administrations, for the private sector, for young people
entering the world of work, a reliable and secure reference point for the changes taking place. We are
counting on working to ensure that technologies are the real bulwark for a new renaissance of humanity in
which women and men are always unquestionably at the centre. We are always convinced and proud to be
able to contribute in this way - with the strength of our ideas and expertise - to the growth of our people, of
our company size, of the value we create for our shareholders and of our country.
The Chairman,
Domenico Favuzzi
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Annual Report at 31 December 2021
Corporate
Bodies
Board of Directors
Chairman and
Chief Executive Officer
Domenico Favuzzi
Directors
Dante Altomare (Vice-Chairman)
Angela Stefania Bergantino (2)
Marina Lalli (2)
Alessandro Laterza (3)
Valeria Savelli (1)
Gianfranco Viesti (2)
Giovanni Castellaneta
Board of Statutory Auditors
Chairman
Dora Savino
Standing Auditors
Andrea Delfino
Mauro Ferrante
Independent Auditors
PricewaterhouseCoopers SpA
(1) Directors not vested with operating powers
(2) Independent directors pursuant to the Corporate Governance
Code of the Corporate Governance Committee
(3) Lead Independent Director
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Annual Report at 31 December 2021
Directors' Report
at 31 December 2021
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Annual Report at 31 December 2021
Significant Group Figures and Result Indicators
The following is a summary of the main consolidated economic, capital and financial data of Exprivia SpA
and its subsidiaries (hereinafter also referred to as the "Group" or the "Exprivia Group") at 31 December
2021 and 31 December 2020.
(1) - "Net working capital" is calculated as the sum of the total current assets, less liquidity and total current liabilities plus current bank
debt.
(2) - "Cash flow" represents the cash flow generated (absorbed) by the income management.
(3) - "Fixed capital" is equal to total non-current assets.
(4) - Investments are calculated as the sum of cash flows absorbed by increases in tangible and intangible assets and equity
investments, net of payments for sales.
(5) - Net Financial Debt = a+b+c
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Annual Report at 31 December 2021
The table below shows the main economic indicators of the Group at 31 December 2021, compared with the
same period of the previous year.
(6) Net invested capital: equal to net working capital plus non-current assets net of non-current liabilities (excluding bank debt and
bond issues)
(7) Financial charges: calculated net of interest cost IAS 19
The table below shows the main capital and financial indicators of the Group referring to 31 December 2021
and 31 December 2020.
Summary of the Operations in 2021
The table below also provides the results for the continuing operations of the Exprivia group at 31 December
2021 compared with the previous year:
To be noted is that revenues for 2021, amounting to Euro 181.7 million, increased significantly compared to
2020; margins grew even more strongly than revenues, resulting in Pre-tax result that increased by 31%
compared to the previous year. The net financial debt of Euro 26.5 million at 31 December 2021, improved
by Euro 13.8 million compared to the negative value of Euro 40.3 million at 31 December 2020.
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Annual Report at 31 December 2021
Significant Exprivia Figures and Result
Indicators
The table below outlines the main economic, capital and financial data taken from the Separate financial
statements of Exprivia SpA (hereinafter also referred to as "Exprivia") at 31 December 2021, compared with
the figures at 31 December 2020.
(1) - "Net working capital" is calculated as the sum of the total current assets, less liquidity and total current liabilities plus current bank
debt.
(2) - "Cash flow" represents the cash flow generated (absorbed) by income management.
(3) - "Fixed capital" is equal to total non-current assets.
(4) - Investments are calculated as the sum of cash flows absorbed by increases in tangible and intangible assets and equity
investments, net of payments for sales.
(5) - Net Financial Debt = a+b+c
The table below shows the main economic indicators of the company for 2021 compared to 2020:
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Annual Report at 31 December 2021
(6) Net invested capital: equal to net working capital plus non-current assets net of non-current liabilities (excluding bank debt and
bond issues)
(7) Financial charges: calculated net of interest cost IAS 19
The table below shows the main financial and capital indicators of the company for 2021 compared to 2020: