Annual report
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1 Annual Report at December 31, 2024 DOXEE GROUP
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2 REPORT ON OPERATIONS ACCOMPANYING THE 2024 CONSOLIDATED FINANCIAL STATEMENTS OF THE DOXEE GROUP BACKGROUND Dear Shareholders, The consolidated financial statements of the Doxee Group at December 31, 2024 have been compiled clearly and in accordance with the IAS/AFRS international accounting standards and provide a truthful, accurate representation of the company’s equity and financial situation and the economic results for the financial year. The Report includes the consolidated data of the subsidiaries included within the consolidation perimeter and those of the parent company Doxee S.p.A. In order to provide a more complete picture of the performance and result for the financial year, the tables below contain a reclassification of the Income Statement on a value-added basis, a reclassification of the Balance Sheet by functional areas and on a financial basis, and the key financial statement indicators. The year ending 12/31/2024 submitted for your approval shows a loss of Euro 3,671 thousand, compared to a profit of Euro 5,104 thousand for FY 2023. 2024 was a year of major transformation for Doxee S.p.A., during which the company laid the foundations for a return to profitability through tough, systematic cost-cutting measures and the redefinition of the market positioning, with the consequent restructuring of sales and marketing operations. Moreover, the reinforcement of the management and the capital increase of Euro 5,874,824.40 (approved on May 24 and completed on June 26, 2024 with the subscription of the entire amount) created the conditions for the operating flexibility needed to support the far-reaching reorganization and support the development of the Doxee Group. 2024 should therefore be seen as the company’s turnaround year, during which its repositioning on the top enterprise market began to take effect. 2024 saw the realization of the ONE Platform project with the issue of the first release of the integration following on from the acquisition of Infinica. This adoption of the upgrades to the Doxee Platform®, together with the organizational synergies launched in 2023 and completed during 2024, enabled the attainment of targets which helped to improve financial results and achieve the company’s sustainability objectives. In terms of turnover and operating result, we report an increase in revenues from customer contracts of 2.4% to Euro 26,473 thousand compared to Euro 25,844 thousand at 12/31/2023, while consolidated EBITDA for 2024 returned to positive territory at Euro 2,941 thousand, an impressive increase compared to the value (Euro -200 thousand) of 12/31/2023. The growth compared to 2023 derived from the positive results achieved in the DACH area, where Doxee generated turnover of Euro 5,069 thousand compared to a 2023 turnover of Euro 3,874 thousand, a significant increase of Euro 1,195 thousand, or 30%.
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3 As already mentioned, group revenues were Euro 26,473 thousand, an increase of Euro 630 thousand compared to 2023. Revenues from recurring subscriptions in 2024 rose to Euro 19,238 thousand, while in 2023 group revenues from recurring subscriptions were Euro 18,690 thousand, meaning an increase in 2024 of Euro 548 thousand (a 3% rise); there was a slight growth in the remainder of group revenues from professional services of Euro 81 thousand, with a 2024 figure of Euro 7,235 thousand compared to Euro 7,154 thousand for 2023. To conclude, it should be underlined that revenues continue to be extremely seasonal, with a strong concentration towards the end of the year. Investments in Research and Development were Euro 4,617 thousand, a reduction from the 2023 peak of Euro 6,900 thousand. In terms of operating performance, the Contribution Margin for FY 2024 shows sharp growth compared to the previous year, from Euro 14,757 thousand in 2023 to Euro 15,988 thousand in 2024. The same applies to the Operating Result (Ebitda), which increased from a negative value of Euro -200 thousand in 2023 to the current Euro 2,941 thousand, as a consequence of all the efficiency-improving policies implemented by the company from the end of FY 2023, as well as an increase in profitability The net result for the period, although still in negative territory, shows a clear improvement, in spite of the adverse effects of tax prepayments of Euro 635 thousand. The 2024 financial year therefore ends with a loss of Euro 3,671 thousand, compared to a loss of Euro 5,104 thousand for the previous year. FINANCIAL STATEMENT DRAFTING CRITERIA The Company adopted the international accounting standards under a Board of Directors resolution dated March 1, 2023, with the transition to the IAS/IFRS Standards set for January 1, 2021. These Financial Statements were therefore drafted in accordance with the IAS/IFRS International Accounting Standards. The Notes which follow will provide all the complementary information deemed necessary to provide a true and fair view of the consolidated statement of financial position of the DOXEE Group and the consolidated income statement result for the period. The Balance Sheet, Income Statement, Cash Flow Statement and Notes have been drawn up in Euro units unless otherwise indicated. SHARE CAPITAL AND SHARES The subscribed and paid-up Share Capital of Doxee S.p.A. at the date of approval of these financial statements amounts to Euro 2,544,039.15, divided into 11,489,575 ordinary shares with no stated par value. It should be noted that during FY 2024 the company successfully concluded the capital increase for a total value of Euro 5,874,824.40, comprising a share capital increase of Euro
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4 630,468.96 and a share premium of Euro 5,244,355.44, through the subscription of all 2,865,768 new-issue Doxee ordinary shares. The new composition of the share capital (fully subscribed and paid in), following the filing with the Register of Companies of Modena of the certification pursuant to art. 2444, paragraph 1 of the Italian Civil Code, is therefore shown below. Subscribed and paid-up current share capital Subscribed and paid-up previous share capital Euro no. of shares Unit nominal amount Euro no. of shares Unit nominal amount 2,544,039.15 11,489,575 with no par value 1,913,570.19 8,623,807 with no par value STOCK PERFORMANCE The Italian Stock Market ended 2024 with a positive performance overall, with increases in the main indexes and in market capitalization. The FTSE MIB index recorded an increase of 12.6% as of December 27, 2024, with a peak for the year of 35,410 points on May 16 and a minimum of 30,077 points on January 23. The FTSE Italia All Share also rose by 12%, with a peak for the year of 37,632 points. However, the FTSE Italia Growth index, which reflects the trend of the Euronext Growth Milan market, ended the year down by 4.8%, reflecting the difficulties faced by small and mid-sized enterprises in the current economic context. The overall capitalization of the listed companies rose to Euro 811 billion compared to Euro 761 billion in 2023, although the capitalization/GDP ratio fell to 38%, a drop from the 39.4% of the previous year. There was a sharp increase in trading volumes, with a daily average of Euro 2.6 billion and more than 76 million contracts exchanged. From the start of the year the Doxee share in particular began a lengthy period of loss of value lasting throughout 2024, with an overall negative annual performance of -50.64 %. Stock market capitalization of the Doxee share at December 31, 2024 amounted to Euro 19,647,173.
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5 The trend in the value of the share during FY 2024 is shown below. GROUP ECONOMIC AND FINANCIAL PERFORMANCE The Group’s Income Statement and financial position are set out below. CONSOLIDATED INCOME STATEMENT (in thousands of Euros) 12/31/2024 12/31/2023 Change Revenues from contracts with clients 26,473 25,844 630 Other revenues and income 1,585 869 716 Internally generated fixed assets 1,790 2,820 -1,031 Raw materials and consumables -8 -9 1 Services costs -14,205 -14,904 699 Costs for employee benefits -12,381 -13,549 1,168 Other operating costs -313 -1,272 959 EBITDA 2,941 -200 3,142 Amortization of intangible assets -4,499 -3,700 -799 Depreciation of tangible assets -105 -250 144 Depreciation of rights-of-use -591 -391 -200 Financial income 144 286 -142 Financial expenses -1,205 -1,066 -139 Foreign exchange gains (losses) 235 -304 539 Profit (loss) before tax from continuing operations -3,080 -5,625 2,545 Income taxes -592 521 -1,112 - Current taxes -43 -2 -41 - Deferred tax assets -695 434 -1,129 - Deferred tax liabilities 146 89 57 Profit (loss) for the year -3,671 -5,104 1,433 of which: 0 0 0 - pertaining to the group -3,671 -5,104 1,433 attributable to minority interests 0 0 0 Apr. ’24 July ’24 Oct. ’24 Jan. ‘25
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6 ESMA NET FINANCIAL DEBT (in thousands of Euros) 12/31/2024 12/31/2023 Changes Financial debt 19,305 21,578 -2,273 Adjustments to exclude: 0 0 0 Receivables and other long-term financial assets 31 33 -2 Restated net financial debt 19,336 21,611 -2,275 PERFORMANCE OF OPERATIONS Sales revenues increased compared to the previous year. The value of production is in line with the previous year. FY2024 closed with positive indications regarding growth for FY2025, partly due to the revised market positioning focusing directly on the top enterprise customer segment. With regard to investments, 2024 bucked the trend as the first year with a reduction in Research and Development investments, which fell to Euro 4.6 million compared to the 6.9 million of FY2023, the year when the company’s allocation of funds to Research and Development activities reached its peak. The company considers maintenance of current levels of investment to be adequate. The investments in the DACH area yielded impressive results in terms of organic growth, with an increase of 30%; the company has good grounds for expecting this trend to continue during the current year. The Parent Company has strengthened its system for controlling cash flow trends and monitoring earnings forecasts and in 2024 the Company is expecting once again to generate the cash required to continue to meet its financial commitments. We are also witnessing a positive trend which began in 2023 in response to the projects for organizational integration (ONE Company) and reinforcement of the value proposition (ONE Value Proposition), which have led to significant improvements in the sales pipeline. Thanks to the efficacy of these measures, 2024 saw major achievements in terms of new customer acquisitions on both the Italian and DACH markets. Specifically, 21 new customers were acquired right across the markets of reference - Public Administration, Banking, Insurance and Utilities. The new corporate customers gained include Banca San Felice 1893, Banca Popolare, Banca Mediolanum S.p.A., Payone Gmbh, SOGEI, Roma Servizi per la Mobilità S.r.l., Città Metropolitana di Roma Capitale, ASP Trapani, ASL Roma 6, ASL NA 3 Sud, GSE - Gestore Servizi Energetici, Generali Portugal SA, Generali GOSP S.r.l., RhönEnergie Fulda Gmbh, VNR Verlag für di Deutsche Wirtschaft AG, Bayerische Landsbank Anstalt des öffentlichen Rechts, WVV – Würzburger Versorgungs und Verkehers Gmbh, A2A Ciclo Idrico S.p.A., Energie Walddeck-Frankenberg Gmbh, SWB AG and Daimler Buses Gmbh.
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7 These impressive results, together with the renewal of important multiannual contracts approaching expiration, which maintain ARR (Annual Recurrent Revenues) at 73% of SaaS revenues, enable the Group’s top management, constantly hard at work to improve the economic and capital targets for 2025 to aim close the year with a positive EBITDA capable of supporting a return to profitability, also in view of the continuity of the measures already in place to cut costs and support sustainable growth. The financial debt is considered sustainable by the Directors because, based on the expected performance in FY2025 and beyond, it is believed that the expected cash flows will be sufficient to meet the group's obligations on a regular basis over that timeframe, due to the improvement in expected operating performance compared to FY2024. CORPORATE STRUCTURE Doxee S.p.A. is an Italian high-tech company listed on Euronext Growth Milan, a multilateral trading system organized and run by Borsa Italia, with Customer Communications Management, Paperless and Digital Customer Experience as its target markets. The corporate structure of the Doxee Group is as follows P&S Babelee S.r.l.Doxee spa 100% Doxee USA IncDoxee spa 51%Simest 49% Doxee skDoxee spa 100% Doxee Czech SroDoxee spa 100% Doxee CEE GmbHDoxee spa 58%Simest 42% Doxee AT GmbhDoxee cee 95%Herbert Liebl 5% Infinica skDoxee At 100%Doxee DEDoxee At 100% Doxee SpAP&S spa –76.5%Ipoc 5 srl –5.2%Floating –18.3%
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8 Below are the companies of the group: Doxee S.p.A. - Parent Registered office: Modena, Italy Equity at 12/31/2024: Euro 10,778,848 Reporting currency: Euro Result for financial year ending 12/31/2024: Euro -3,457,724.02 Fully paid-up share capital: Euro 2,544,039.15 Status: Parent Company Doxee USA Inc. Registered office: Fort Lauderdale, Florida, United States of America Equity at 12/31/2024: Euro -4,196,534.47 Reporting currency: US dollar Result for financial year ending 12/31/2024: Euro 263,031.85 Fully paid-up share capital: Euro 37,188 Status: American subsidiary Direct ownership share: 51.02% Indirect ownership share: 0% Doxee Slovak s.r.o. Registered office: Bratislava, Slovak Republic Equity at 12/31/2024: Euro 478,597 Reporting currency: Euro Result for financial year ending 12/31/2024: Euro 98,754.64 Fully paid-up share capital: Euro 10,000.00 Status: Slovak subsidiary Direct ownership share: 100% Doxee Czech s.r.o. Registered office: Prague, Czech Republic Equity at 12/31/2024: Euro 339,668.51 Reporting currency: Czech koruna Result for financial year ending 12/31/2024: Euro -48,009.20 Fully paid-up share capital: Euro 9,252.00 Condition: subsidiary in the Czech Republic Direct ownership share: 100% The above percentages of ownership remained unchanged between the two periods. Babelee S.r.l. Registered office: Milan, Italy Equity at 12/31/2024: Euro -187,288.96 Reporting currency: Euro Result for financial year ending 12/31/2024: Euro -214,334.29 Fully paid-up share capital: Euro 12,193.00 Status: Italian subsidiary Direct ownership share at December 31, 2024: 100.00% Indirect ownership share: 0% Doxee CEE GmbH Registered office: Vienna, Austria Equity at 12/31/2024: Euro 4,324,748.31 Reporting currency: Euro Result for financial year ending 12/31/2024: Euro -221,587.81 Fully paid-up share capital: Euro 61,000.00 Status: Austrian subsidiary Direct ownership share: 58% Doxee AT GmbH (formerly Infinica AT GmbH) Registered office: Vienna, Austria Result for financial year ending 12/31/2024: Euro -306,766.54 Reporting currency: Euro Status: Austrian subsidiary Fully paid-up share capital: Euro 36,000.00 Direct ownership share at December 31, 2024: 0.0% Equity at 12/31/2024: Euro -207,822.55 Indirect ownership share: 55.1%
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9 DOXEE DE (formerly Infinica DE) Registered office: Germany Result for financial year ending 12/31/2024: Euro -120,445.59 Reporting currency: Euro Condition: German subsidiary Fully paid-up share capital: Euro 25,000.00 Direct ownership share at December 31, 2024: 100.00% by Doxee AT GmbH Equity at 12/31/2024: Euro -145,079.52 Indirect ownership share: 55.1% INFINICA SK Registered office: Slovak Republic Result for financial year ending 12/31/2024: Euro 4,960.80 Reporting currency: Euro Status: Slovak subsidiary Fully paid-up share capital: Euro 5,000.00 Direct ownership share at December 31, 2024: 100% by Infinica Doxee AT GmbH Equity at 12/31/2024: Euro 35,947.72 Indirect ownership share: 55.1% STRUCTURE OF THE CENTRAL FUNCTIONS The following is a representation of the corporate and functional organization of DOXEE at 03/24/2025 CONSOLIDATION CRITERIA In drawing up these Consolidated Financial Statements, the principle of full consolidation was adopted, preparing the line-by-line consolidation of all the subsidiaries for the entire year. Hereinafter, this report will provide all the complementary information deemed necessary to provide a true and fair view of the consolidated statement of financial position of the Doxee Group and the consolidated income statement result for the year. Note that the Consolidated Statement of Financial Position, Income Statement and Notes have been drawn up in units of Euro, where not otherwise indicated.
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10 PERFORMANCE INDICATORS This report on operations illustrates certain performance indicators in order to provide a more detailed picture of the Group’s operating performance and statement of financial position. These indicators are not identified as accounting measures under the IFRS Standards adopted by the European Union, and their quantitative calculation may not be unequivocal. These are measures used by the management to monitor and assess operating performance. The management deems that those indicators are important parameters for measuring operating performance, as they are not influenced by effects of the various criteria for determining the taxable amounts or the characteristics of capital employed. Based on these premises, those indicators are listed below, along with the criteria used to define them: EBITDA: this is the sum of net profit and the absolute value (i) of amortization and depreciation for the period and write-downs, (ii) of financial income and expenses, (iii) of extraordinary income and expenses and (iv) taxes. EBITDA is an indicator used as a financial target in internal and external presentations, and is a unit of measurement to measure the performance of the company and the group; EBIT: this is the sum of EBITDA, minus amortization and depreciation for the period and write-downs; Financial Debt: with “Warning Notice no. 5/21 of April 29, 2021”, CONSOB declared its intention to ensure compliance of its supervisory practices with the new ESMA (European Securities and Market Authority) Guidelines on disclosure obligations pursuant to Regulation EU 2017/1129. The guidelines update the previous CESR Recommendations (ESMA/2013/319, the version of March 20, 2013) on debt. Therefore, starting from the application date of May 5, 2021, the references made in previous CONSOB communications are considered replaced with the specific ESMA Guidelines, including the references in Communication no. DEM/6064293 dated July 28, 2006 concerning financial debt. The statement of financial position is reclassified in accordance with the financial method, i.e. classifying and grouping assets according to their level of liquidity, meaning based on their ability to be transformed into liquidity in a more or less short term, while grouping liabilities on their duration over time, i.e., based on the speed of their discharge. ANALYSIS OF THE CONSOLIDATED INCOME STATEMENT, STATEMENT OF FINANCIAL POSITION AND CASH FLOWS CONSOLIDATED STATEMENT OF FINANCIAL POSITION The Consolidated Statement of Financial Position and reclassified statement highlighting Net Financial Debt are shown below.
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11 Consolidated statement of financial position (in thousands of Euros) 12/31/2024 12/31/2023 Change Non-current assets Tangible assets 151 359 -208 Development costs 9,913 12,470 -2,557 Work in progress and payments on account 8,358 6,145 2,214 Other intangible assets 4,300 4,833 -533 Right-of-use assets 1,505 1,115 389 Goodwill 7,769 7,769 0 Non-current financial assets 31 34 -2 Deferred tax assets 597 1,294 -697 Other non-current assets 54 44 10 Total non-current assets 32,677 34,062 -1,385 Current assets Trade receivables 7,542 8,002 -460 Other receivables 2,379 3,885 -1,506 Cash and cash equivalents and short-term deposits 1,057 776 281 Total current assets 10,978 12,663 -1,685 Total assets 43,656 46,725 -3,069 Equity Share capital 2,544 1,914 630 Share premium reserve 13,799 8,554 5,244 Other reserves 2,049 7,950 -5,901 FTA reserve -1,588 -1,588 0 Employee benefits reserve -72 -95 22 Currency translation reserve -262 1 -263 Cash flow hedge reserve -88 -73 -15 Retained earnings/(Accumulated losses) -4,215 -5,013 797 Profit (loss) for the year -3,671 -5,104 1,433 Equity attributable to the Group 8,495 6,548 1,948 Minority interests in capital and reserves 0 0 0 Profit (loss) attributable to minority interests 0 0 0 Equity attributable to minority interests 0 0 0 Total equity 8,495 6,548 1,948 Non-current liabilities Non-current loans and financing 10,751 13,786 -3,034 Non-current lease liabilities 919 833 86 Net liabilities for employee benefits 1,913 2,018 -105 Deferred tax liabilities 972 1,119 -146 Other non-current liabilities 116 312 -197 Non-current public grants 2,682 2,131 551
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12 Total non-current liabilities 17,355 20,199 -2,844 Current liabilities Current loans and financing 7,312 6,519 792 Current lease liabilities 519 480 40 Other current financial receivables 777 673 103 Trade payables and other payables 8,123 10,691 -2,567 Tax payables 800 606 194 Public grants 274 1,009 -735 Total current liabilities 17,806 19,978 -2,173 Total equity and liabilities 43,656 46,725 -3,069 Reclassified Consolidated Statement of Financial Position Net Invested Capital, at Euro 27,831 thousand (Euro 28,159 thousand at December 31, 2023), is more or less in line with the previous financial year. Net Financial Debt shows an improvement of Euro 2,275 thousand, indicating that the company has regained the capacity to generate positive cash flows. The Group Shareholders’ Equity came to Euro 8,495 thousand (Euro 6,547 thousand at December 31, 2023) net of the loss incurred in the period, and has increased as a result of the recapitalization undertaken during FY 2024. Reclassified Consolidated Balance Sheet (in thousands of Euros) 12/31/2024 12/31/2023 Change Tangible assets 1,656 1,474 181 Intangible assets 30,340 31,217 -877 Financial assets 34 34 0 Total fixed assets 32,030 32,725 -695 Trade receivables 7,542 8,002 -460 Trade payables -8,123 -10,691 2,567 Working capital -581 -2,689 2,108 Other assets 3,029 5,223 -2,193 Other liabilities -4,734 -5,081 347 Other assets and liabilities -1,705 141 -1,846 Employee benefits liabilities -1,913 -2,018 105 Net Invested Capital (NIC) 27,831 28,159 -328 Capital and reserves 12,167 11,652 515 Profit (loss) for the year -3,671 -5,104 1,433 Equity 8,495 6,548 1,948 Net Financial Debt 19,336 21,611 -2,275 Total covering the NIC 27,831 28,159 -328
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13 The Group's Net Financial Debt at December 31, 2024 is shown in detail below: ESMA NET FINANCIAL DEBT (in thousands of Euros) 12/31/2024 12/31/2023 Change A. Cash and cash equivalents 1,057 776 281 B. Cash equivalents 0 0 0 C. Other current financial assets 0 0 0 D. Liquidity (A+B+C) 1,057 776 281 E. Current financial payables 3,346 4,678 -1,332 F. Current portion of non-current financial payables 5,262 2,995 2,267 G. Current Financial Debt (E+F) 8,608 7,673 935 H. Net Current Financial Debt (G-D) 7,551 6,896 654 I. Non-current financial payables 11,786 14,715 -2,929 J. Debt instruments 0 0 0 K. Trade payables and other non-current payables 0 0 0 L. Non-current financial debt (I+J+K) 11,786 14,715 -2,929 M. TOTAL NET FINANCIAL DEBT (H+L) 19,336 21,611 -2,275 The Doxee Group's Net Financial Debt amounted to Euro 19,336 thousand (Euro 21,611 thousand at December 31, 2023), including cash and cash equivalents of Euro 1,057 thousand, indicating the group’s gradual return to the generation of positive cash flows. INCOME STATEMENT The Income Statement is set out below. For the sake of clarity, it should be noted that in accordance with the IAS/IFRS international accounting standards, the Group sets out capitalized costs under “Internally generated fixed assets” exclusively with regard to internal personnel costs. External costs are not included in the income statement, but are directly posted under the respective items of the balance sheet. Reclassified consolidated income statement Revenues from sales and services amounted to Euro 26,473 thousand, up 2.43% on Euro 25,844 thousand in 2023. With regard to the breakdown of turnover, the Group’s most important product line derives from subscriptions, with revenues of Euro 19,238 thousand, compared with Euro 18,690 thousand in 2023, accounting for more than 72.67% of turnover.
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14 Due to a reclassification of sales and marketing costs in FY 2024, a uniform comparison with the same costs referring to FY 2023 is not possible, as the 2024 sales and marketing costs contain Euro 2,179 thousand of direct personnel costs. Reclassified consolidated income statement 12/31/2024 12/31/2023 Change (in thousands of Euros) Revenues from sales and services 26,473 25,844 629 Internally generated fixed assets 1,790 2,820 -1,030 Other revenues and income 1,578 869 709 Value of production 29,840 29,533 307 Services and outsourcing -4,477 -5,120 643 IaaS direct costs -1,637 -1,910 273 Direct personnel costs (excluding research and development) -3,885 -4,938 1,053 Professional services (excluding research and development) -3,853 -2,809 -1,044 Direct production costs -13,852 -14,776 924 Contribution margin 15,988 14,757 1,231 Sales and marketing costs -3,008 -1,274 -1,734 Administration and other general overhead costs -4,022 -4,274 252 Indirect personnel cost -3,519 -5,789 2,270 Research and development costs -2,498 -3,621 1,123 Indirect and research and development costs -13,048 -14,957 1,909 EBITDA 2,941 -200 3,141 Depreciation and Amortization -5,195 -4,341 -854 Provisions and write-downs 0 0 0 EBIT -2,255 -4,542 2,287 Financial income and expenses -824 -1,083 259 Profit/loss before tax -3,079 -5,625 2,546 Income taxes -592 521 -1,113 Profit/loss for the year -3,671 -5,104 1,433 Third party profit/loss 0 0 0 Group profit/loss -3,671 -5,104 1,433 Recurring revenues stood at around 72.67% of total revenues. The Value of Production amounted to Euro 29,840 thousand (Euro 29,533 thousand in 2023). The Contribution Margin stood at Euro 15,988 thousand, compared to Euro 14,757 thousand in 2023. EBITDA stood at Euro 2,941 thousand, compared to Euro -200 thousand in 2023. In particular, investments in R&D were approximately Euro 4.6 million, corresponding to around 15% of the value of production (23% in 2023). Compared to the total amount of investments, Euro 1,790 thousand is posted in the income statement, while the remaining amount, attributable to costs for external consulting, was capitalized in the balance sheet as a result of the application of the IAS/IFRSs. R&D's focus was on completing the new release of the Doxee Platform®, a cloud-native platform, integration with the Infinica Group and investments in innovative areas related to artificial intelligence and mass data analytics.
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15 After amortization, depreciation, write-downs, and provisions of Euro 5,195 thousand (Euro 4,341 thousand in 2023), which were largely related to investments in technological development, EBIT amounted to Euro -2,255 thousand (Euro -4.542 thousand in 2023). The pre-tax result (EBT) stood at Euro -3,079 thousand (Euro -5,625 thousand in 2023), while the Group Net Result recorded a loss of Euro -3,671 thousand (Euro -5,104 thousand in 2023). INDICATORS Several income statement and balance sheet indicators are shown below. Fixed asset financing ratios (in thousands of Euros) 12/31/2024 12/31/2023 Change Equity - Fixed Assets -23,531 -26,143 2,612 Equity / Fixed Assets 0.27 0.2 0.07 (Equity + Consolidated Liabilities) - Fixed Assets -6,177 -5,944 -233 (Equity + Consolidated Liabilities) / Fixed Assets 0.81 0.82 -0.01 The equity / fixed asset ratio shows the extent to which the financial needs generated by fixed assets are covered by equity; this ratio, which is greater than one when Equity - Fixed Assets is positive and less than one in the opposite case, should be greater than or around one over the long term. This ratio shows an improvement compared to the previous financial year. (Equity + consolidated liabilities) / fixed assets ratio shows the extent to which long-term financial needs, expressed by total fixed assets, are covered by sources of financing with the same maturity (equity + consolidated liabilities). The ratio is in line with the previous financial year, although it points to a slight reduction in the coverage of fixed assets from long-term sources. Ratios on the structure of sources of financing 12/31/2024 12/31/2023 Change Leverage ratio 4.14 6.14 (2.00) Financing liabilities / Equity 2.40 3.71 (1.31) The leverage ratio shows the ratio of debt to equity. It allows assessing the risk associated with a company's reliance on external sources of financing. A high level of debt relative to equity usually increases enterprise risk, as it limits the ability to cover potential business losses with equity and gives greater weight to borrowing costs arising from the use of debt.
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16 The financing liabilities / equity ratio should be less than or equal to 1, so that the Group's sources of financing are greater than half of the risk and less than half of the loan. The improvement in both ratios is an encouraging sign with regard to the company’s financial soundness. This improvement is due in part to the reduction in financial exposure to third parties. Profitability ratios 12/31/2024 12/31/2023 Change Net ROE -43.2% -78.0% 34.7% Gross ROE -36.3% -85.9% 49.7% ROI -7.6% -16.1% 8.5% ROS -8.5% -18.0% 9.5% R.O.E. (Return on Equity), i.e., the ratio of profit or loss for the period to equity, measures the return on the company's equity; the figure was negative due to the loss for the period. The Gross R.O.E., which measures the return on equity without accounting for the negative impact of taxes; as for the previous ratio, the value for the period was largely insignificant due to the loss recorded during the year. R.O.I, (Return on Investments), i.e., the ratio of operating profit or loss to net assets, measures the return on invested capital through the company's operations: this depends on the intensity of sales, operating costs, and invested capital. The R.O.I. for the period is negative but a sharp improvement over the previous financial year. The R.O.S. (Return on Sales), i.e., the ratio of operating profit or loss to revenues from sales, measures operating profit or loss as a percentage of sales, thus highlighting the relationship between selling prices and operating costs: here again, there was considerable improvement although the ratio continues to be negative. Solvency ratios 12/31/2024 12/31/2023 Change Current assets - Current liabilities (6,827,417) (7,315,822) 488,404 Current assets / Current liabilities 0.62 0.63 (0.02) (Trade and other receivables + Cash and cash equivalents) - Current liabilities (6,827,417) (7,315,822) 488,404 (Trade and other receivables + Cash and cash equivalents) / Current liabilities 0.62 0.63 (0.02)
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17 Current assets - Current liabilities (which in this case coincides with (Trade and other receivables + Cash and cash equivalents) - Current liabilities, as the Group does not hold inventories), is the difference between current assets and current liabilities. Both the Current assets - Current liabilities ratio and the (Trade and other receivables + Cash and cash equivalents) - Current liabilities margin are gradually improving. COMPANY’S BUSINESS Doxee S.p.A. is a leading company in the high-tech sector and in the provision of services in the Customer Communications Management (CCM), Paperless and Digital Customer Experience (DCX) markets. It offers businesses, and Enterprise sector businesses in particular, the opportunity to enable processes for the digital transformations of communications with their Customer Base, using a patented proprietary technology (Doxee Platform®). The Doxee Platform® is able to make communication interactive and personalized, as it permits interaction with the recipient. The company has radically innovated the CCM, Paperless, and DCX markets by means of a single technological product delivered through the Cloud or in on-premise mode, allowing customers to significantly improve the operational efficiency of communication processes. The offering based on the Doxee Platform® enables: • configuration, on-demand and scheduled production, storage and omnichannel distribution of documents in “paginated” form, guaranteeing the most modern accessibility and inclusion standards, such as PDF/UA • the documents produced can be used for Electronic Invoicing, Long-Term Digital Preservation, Electronic Ordering and other products for customers looking to dematerialize their business processes and intermediary relations. • In addition to standard-format “paginated” documents, the platform permits omnichannel distribution of “interactive” documents, i.e. documents able to interact with the recipient, moving beyond the one-way communication paradigm to a model enabling two-way communication with the end user. This enables the activation of Digital Customer Experience (DCX) which the Doxee Platform® supports through the production and distribution of interactive micro web sites (Doxee Pweb®) and personalized interactive videos (Doxee Pvideo®): • Last but not least, thanks to the recent integration with the Infinica (Doxee AT) technology, the system allows the real-time management of workflows in which documents are compiled and produced by mixed operating models, with documents also created through collaborative models involving the user. These use cases are generally in the area of CRM, a field in which Doxee Platform® is integrated with the main technologies (Salesforce, SAL, MS Dynamics). Doxee offers its technology over the Cloud under SaaS and PaaS service models. The Doxee Platform® product is also an efficient choice from a financial perspective, since its use does not require any capital investments, but only the payment of fees and variable costs to Doxee that include the technological and regulatory updates constantly provided by the company.
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18 GENERAL ECONOMIC TREND – THE IT AND ICT SECTOR IN ITALY The Euro area economy experienced moderate growth during 2024. According to Banca d’Italia projections, GDP rose by 0.6%, with growth forecast to accelerate in the next two years to 1.0% in 2025 and 1.2% in 2026 (source Bollettino Economico di Banca D’Italia). Retail inflation remained low at 1.1% in 2024, with 1.6% predicted in both 2025 and 2026. This trend is partly due to the fall in the prices of intermediate goods and energy. However, manufacturing showed signs of weakness, especially in Germany, because of rising energy costs and the fall in global demand. This has had negative repercussions for the whole Euro area. Overall, in 2024 Europe enjoyed moderate economic growth with low inflation and a stable labor market. However, challenges persist with regard to the weakness of manufacturing and the geopolitical uncertainties which could affect future economic trends. In 2024, the European economy experienced a contrast in trends between the industrial and service sectors. According to the Banca d’Italia’s “Indagine sulle imprese industriali e dei servizi” (Survey of Industrial and Service Firms), businesses employing at least 20 people performed as follows: 1. Industry Sector: according to the Rapporto sulla situazione economica dell'Eurozona della Banca d’Italia (Banca d’Italia Report on the economic situation of the Eurozone), growth in Europe’s Industry Sector has been poor, with a reduction in output in some countries, such as Germany, where manufacturing industry recorded a slowdown due to factors including high energy costs and the fall in global demand. Overall, this sector grew more slowly than services; 2. Services Sector: the services sector showed signs of growth, especially in the digital services and consulting segments. European businesses expanded their operations in the non-financial services sector, thanks in part to the recovery of domestic consumption and the growth in activities related to tourism and health. The prospects for growth in services are more optimistic than for industry. With regard to the Information and Communication Technologies (ICT) market in Europe, the forecasts point to: • total spending of 1.1 trillion dollars in 2024, with annual compound growth of 5.3% from 2022 to 2027. (source idc.com) • an increase in spending on software and IT services, driven by the growing adoption of generative AI tools and cloud solutions. The European Information and Communication Technologies (ICT) market continued to grow in 2024. There was a significant rise in spending on IT services and the adoption of cloud solutions. The European Commission reports strong demand for software and AI solutions, which have come a key driver for the digitalization of European businesses. The Italian market saw major investments in ICT, with an estimated annual growth rate of 5-6% for 2024-2026. (Source Anitec-Assinform) According to the Assintel 2024 Report, which surveys the ICT and digital market, the ICT sector grew by +4.1% in 2024 to 42.4 billion Euro, with a forecast of +4.6% for 2025.
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19 The new Assintel Report 2024, presented to the Lower House of the Italian Parliament, underlined that large organizations, including corporations and the Public Administration, are the main drivers of the market, with growth of +4.9% and a share of 53%. Investments are led by the Public Administration (+6%), Industry (+5.9%), Utilities (+5.7%) and the financial sector (+5.4%). When it comes to geographical areas, the North-West is leader in volume terms (+4.9%) while the North-East recorded the strongest growth (+5.4%). Amongst the various segments, IT services achieved the highest growth rate (+8.6%), followed by Software (+4.6%). In terms of user businesses, 27% of Italian companies are increasing their expenditure on innovation while 62.2% are maintaining the same level. The proportion of completely analogue businesses fell to 2.9% compared to 8.5% in 2023. The cloud and AI are the emerging technologies most widely adopted by ICT SMEs: 45% of them are planning to adopt AI by the end of 2025, a growth rate of +34.4%. However, on the Demand side only 4% of companies (mainly large corporations) have reached an advanced stage in these technologies’ use. The main challenges are a lack of economic resources, an innovation-shy corporate culture and the difficulty of recruiting digitally skilled staff. Digital market in Italy: % growth and values in mln Euro Source: Banca D’Italia, NetConsulting Cube, April 2024 Year-on-year % growth Values of Digital Market in mln Euro % Change in Digital Market GDP
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20 Trend in Digital Enablers 2023 - 2027 Source: NetConsulting Cube, April 2024 Annual growth in digital market and GDP, 2012 - 2027 Source: NetConsulting Cube, May 2024 The trends for the DACH area (Germany, Austria and Switzerland) reveal growth of the IT market in Germany: according to the Technavio report, the IT market will grow by 33.3 billion dollars from 2025 to 2092, driven by the increasing adoption of IT technologies amongst small and mid-sized enterprises (SMEs). (Source: prnewswire.com). At the same time, total spending on ICT in the DACH region during 2021-2026 is forecast to record a compound annual growth rate (CAGR) of 6.4%, higher than the European average of 5.4%. (Source: communicationstoday.co.in) Unpacking the growth for other parts of Europe and focusing on the EEC in particular, in 2024 Central Europe proved to be resilient with an increase of 8%, representing a total of 79 billion Euro, while Eastern Europe grew by 15%, with a total volume of 17 billion Euro (Source: Mordor Intelligence). Web management platforms Values in mln Euro GDP at market prices Digital Market GDP at constant prices
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21 Therefore, growth in the digital market is strengthening, even though monetary policies are still restrictive. Maintaining the trend of recent years, the ICT companies sector continues to out-perform the economy as a whole on a variety of indicators, from value added to job creation and the rise in the number of startups and companies trading. A comparison of the historic series of data for growth in the ICT market and GDP at market prices and constant prices points to an ongoing strong upward trend in digital investments even in the short term, in spite of restrictive monetary policies. At the European level, it is important to highlight the fact that technological convergences have led to an exponential increase in the speed of innovation, affecting individuals, economies and societies. The digital sector is having a huge impact on businesses’ ESG policy decisions, with regard to both reduction in environmental emissions and all aspects of inclusiveness, with a focus on wellbeing within organizations and the accessibility of digital contents. With regard to the evolution of the digital market in the various sectors, it is interesting to note that thanks to the investments generated in Italy by the National Recovery and Resilience Plan, digital technologies are no longer only being adopted by businesses in all sectors but are also expanding fast in central and local government and health care, in line with the trends observed the previous year. To conclude, it is important to underline that with regard to growth in the customer communication and customer experience segments, where Doxee competes directly, forecasts indicate a major global expansion, with specialist analysts estimating that the sector will be worth 4.13 billion dollars by 2030 with an annual CAGR of 11.8%. This upward trend derives from digital assets, where the need to strategically manage data and simplify and decommission legacy systems within companies’ applicational maps will be a strategic factor in the agenda-setting of CIOs and IT departments.
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22 Growth in customer communication and customer experience market 2023 MACROECONOMIC SCENARIO AND 2024 FORECAST In 2024, growth in Italian GDP was mainly supported by the gradual rise in consumer spending (0.7%) and the positive contribution of demand for exports (0.6% of increase in GDP). The trend in investments shows an overall decrease of 0.2%, in spite of significant growth of about 20% in public sector investments, supported by the Italian National Recovery and Resilience Plan (NRRP). It is estimated that private investments fell by 3.7%, due to high interest rates, the uncertainties in the geopolitical and economic context - which negatively affected business confidence, on a downward trend since the end of 2021 - and a reduction in support from public-sector incentive schemes. This unimpressive growth notwithstanding, the Italian M&A market proved to be resilient: it is estimated that the number of operations with target in Italy during 2024 was around 1,300, an increase of 7% over 2023. Total invested capital is expected to come out at €60-65 billion, a 5% rise compared to the previous year. Financial investors, especially Private Equity funds, continue to play a pivotal role. About 75% of operations were driven by consolidation within production sectors or supply chains. Moreover, the trend in Italian companies’ investments abroad showed no signs of wavering, with more than 270 operations and total investments of about €15 billion. Turning to a worldwide perspective, the picture regarding global economic prospects for 2025 is extremely complex and variegated. Oxford Economics has estimated that global GDP grew by 3.1% in 2024, with a slowdown to below 3% forecast towards the end of the decade due to structural factors such as the low birthrate, the fall-off in Chinese growth, the loss of enthusiasm for globalization and high private and public debt. Growing political uncertainty and increased geopolitical tensions pose a major threat to global growth. However, one positive factor for economic growth in the coming years comes from the high rate of increase in USA GDP, predicted at 2.7% for 2024-2027, thanks to the expansionist economic policies announced by incoming President Trump, although the recent introduction of customs duties
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23 with some countries in a number of product sectors and the ongoing uncertainty caused by the new President’s statements could seriously affect worldwide economic trends. In Europe, Eurozone growth in the third quarter of 2024 was positive (+0.4% on a quarterly basis), but forecasts are more optimistic, with predicted GDP growth of 1.5% for the European Union and 1.3% for the Eurozone. These are the main reasons: 1. Increase in consumer spending: Internal demand is expected to recover, driven by consumer confidence and more favorable fiscal policies in some countries. The improvement in the jobs market, with unemployment continuing to fall, could support retail consumption. 2. Ecological and digital transition: Investments in green technologies and digitalization are predicted to accelerate, with the strengthening of incentives supporting the energy transition and sustainability. High-tech sectors such as Artificial Intelligence (AI) and the Internet of Things (IoT) are destined to expand further, driving industrial innovation and services sector growth. 3. Recovery in manufacturing: If global demand for goods and geopolitical stability improve, the manufacturing sector could enjoy a recovery, especially in the economies of central and eastern Europe. Countries such as Poland and the Czech Republic could experience considerable growth in technological production and assembly sectors. 4. ECB monetary policies: The European Central Bank will continue to monitor inflation and intervene by means of monetary policies, but with the aim of not overly impeding economic growth. Inflation forecasts are encouraging, with stabilization at 2.1% predicted for 2025. In spite of these forecasts for growth, there are various unknowns: • Geopolitical tensions: Events such as the conflict in Ukraine and political uncertainties in the United States could continue to adversely affect the European economic, increasing the risks of inflation or recession. • Protectionist policies worldwide: The introduction of trade barriers could slow the growth of European exports, especially in external markets, on which the EU is strongly dependent for its trade. Overall, in 2024 the European economy was in a phase of moderate growth, with encouraging signs from consumer demand and the expansion of the digital and green sectors. The forecasts for 2025 point to a recovery of economic growth, supported by rising retail sales and technological innovation. However, the geological context and the challenges linked to global trade continue to be major risk factors. (Sources: European Commission, European Central Bank - ECB)
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24 EVENTS DURING THE FINANCIAL YEAR Merger by incorporation of wholly-owned subsidiary Babelee S.r.l. in Doxee S.p.A. The merger by incorporation of the subsidiary Babelee S.r.l. in Doxee S.p.A. is currently nearing completion. This operation was approved by the Boards of Directors of both companies on September 29, 2024, by the Board of Directors of Doxee S.p.A. meeting in extraordinary session with minutes taken by Notary Public Silvio Vezzi, and by the extraordinary shareholders’ meeting of Babelee S.r.l. held on January 29, 2025; the deed of merger is expected to be signed in April 2025. This merger will legally come into force, pursuant to Article 2504-bis par. 2 of the Italian Civil Code, from the last day of the month during which the last of the registrations envisaged by Article 2504 par. 2 of the Italian Civil Code was made and executed pursuant to Article 2504 par. 3 of the Italian Civil Code, i.e. from the date given in the deed of merger. The incorporating company will take over all creditor and debtor legal relationships of the incorporated company from the date when the merger actually comes into force. For accounting and tax purposes, pursuant to Article 2504-bis of the Italian Civil Code and Article 172, par. 9, of Italian Presidential Decree 917/86 (TUIR), the operations of the incorporated company will be registered in the financial statements of the incorporating company starting from the first day of the financial year during which the last registrations pursuant to Article 2504 of the Italian Civil Code are made. It should also be noted that: - with reference to the regulations governing the obligation to inform on corporate transactions contained in the Euronext Growth Milan Listing Rules, considering the relevance indicators provided in Article 12 of the Rules the planned merger does not constitute a “Significant Transaction” for the purposes of the Rules; - in accordance with the Procedure on Related Party Transactions adopted by Doxee S.p.A. in compliance with the provisions of the Rules governing related party transactions approved by Consob by resolution no. 17221 of March 12, 2010 and subsequently amended by resolution no. 17389 of June 23, 2010, since the planned merger is a transaction with a subsidiary with regard to which no other related parties have interests classified as significant, it falls within the category of exempt transactions for which, in accordance with the exemption cases and options envisaged by the Rules on related party transactions, the provisions of the aforesaid Procedure do not apply, subject to any obligations to inform. The merger derives from the need to concentrate within Doxee S.p.A. itself the business previously conducted independently by the subsidiary, through a corporate reorganization which will optimize the management of resources and the economic and financial flows currently split between the two companies. In fact, the merger will generate considerable economies of sale by eliminating duplications in the companies’ management and administration, leading to general cost savings as the business will be conducted by just one company instead of the current two. Finally, the organizational restructuring will unite and integrate decision-making processes and improve the flexibility and efficiency of the company’s organization.
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25 Additional significant events during the year No significant events occurred after the end of the financial year. OTHER INFORMATION REGARDING THE COMPANY Research and Development As mentioned in the introduction, the year saw the first release of ONE Platform, i.e. the integration of the Business Designer of Doxee AT (formerly Infinica G.m.B.H) in the Doxee technology. This platform will replace previously developed products and will find application in all the vertical markets in which Doxee operates (banking, insurance, finance, utilities, public administration). The main activities during 2024 focused on: • architectural design to guarantee the maximum scalability in response to growth in volumes, security by design and optimized delivery costs (elastic computing) for cloud and on-premise environments • support for the anyprem model, i.e. the Doxee Platform’s technological compatibility with the various cloud and on premise suppliers. • complete integration of the output generation engine in the unified platform, with the benefit of adoption of PDF/UA accessibility standards configurable to customers’ specific use cases • launch of a new set of UI components (ONE Platform) for implementation of interfaces for all configurations and customizations at the service of the different user personas involved in projects and service delivery • integration with the BPM workflow system for the management of interactive document composition processes typical of CRM procedures. • extension of integration with all the main CRM technologies (Salesforce, SAP, MS Dynamics) • implementation of new AI semantic support agents for the translation and composition of documents of different types based on third-party large language models (LLMs). During the year, the company continued developments relating to the funded projects. The unified organizational model includes integrated management of the development R&D teams with governance centralized in the parent company. 2024 saw the activation of systems for monitoring software development and release processes with monitoring of the relevant cost, efficacy and quality KPIs.
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26 Marketing and communications During 2024, Doxee’s Marketing Department’s main priorities were to support the Sales Department by generating leads and provide instruments to support the sales process, focusing more strongly on segmented actions to achieve more effective interaction with the potential markets of reference - i.e. medium-large utilities and the insurance and banking industries. In addition, 2024 saw actions intended to generate brand awareness and relationships at C-level in the markets with the greatest growth potential for Doxee: insurance and banking. To achieve this, in 2024 the company became a member of Cetif, the Research Center of Università Cattolica del Sacro Cuore in Milan, which for more than thirty years has been conducting Conferences, promoting Research, delivering Executive and Master's courses on the dynamics of strategic, organizational and technological change in the financial, banking and insurance sectors. The aim of this partnership is to establish connections with decision-makers in Doxee’s target industries. Moreover, to further reinforce its presence on the insurance market, the company launched a partnership with Insurtech Italy (IIA), Italy’s leading association for insurance value chain actors intending to innovate and develop products and offerings to deal with the new challenges posted by the digital consumer. At both Cetif and IIA meetings, Doxee gave specific speeches to present its vision of ONE Platform to support the digital transformation of customer communications and the improvement of the related company processes, particularly valuable for reducing the security and compliance risks arising from the decommissioning of legacy systems and upgrading operating processes in contexts where personalized, relevant communications play a strategic role in cutting costs and restoring efficacy. Furthermore, during 2024 special attention was paid to sustainability. In this area, as well as the communication drive on the sustainability-related functions of the Doxee Platform, such as the accessibility of the formats (PDF/UA and HTML) and the validation of CO2 emissions reductions, which were the subject of specific campaigns, especially on professional social media channels such as Linkedin, Doxee also played an active role as a member of the “Fondazione per la Sostenibilità Digitale” (Digital Transformation Institute), within which it is contributing to the writing of sustainability good practices for communications and the drafting of the Fondazione’s own Manifesto. After the conclusion of the rebranding involving the Infinica and Doxee brands, completed at the end of 2023, during 2024 the company drew up the guidelines for the repositioning of Doxee’s digital properties during 2025, especially the new website consistent with the ONE Company and ONE Platform approach. The last quarter of 2024 also saw planning of the activities for two major webinars to be organized with the support of leading insurance companies and the IIA: one webinar will be dedicated to the Italian market and the second to the DACH market, beginning the extension
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27 to the European level of the marketing strategy designed to enable growth in the insurance industry. Furthermore, during the second semester of 2024 the external, LinkediN and in-house Newsletters were redesigned, while the in-house information sharing area was reorganized as “I am Doxee”. This area enables employees to keep up to date with all the latest innovations and to access product and Value Proposition materials created by the Product Management and Strategic Account organizational units and the marketing structures. In addition, events were held in both the Italy and the DACH market area, to ensure continuous coverage of the reference markets. In Italy, apart from Cetif the company also attended the Insurtech Connect and Insurance Summit events. The attendance at the event of the partner RGI was also important with regard to coverage of the insurance market. Doxee also held a Bespoken event with CX Now and attended the Forum PA Utility Day. In the DACH area, the company was present in various ways at the Customer Experience Forum, Messekongress Kundenmanagement 2024, the POSY Output Forum, the Versicherungsforum, the Doo Gmbh AI & Data Summit and the event organized by the partner Cronos. A Bespoken event with a select group of decision-makers from the Banking, Utility and Telco markets was also held in the DACH area. Doxee days were organized on both markets (one in Frankfurt and the other in Milan) in order to strength the relationship with the customer base and present the latest developments in the roadmap of the Doxee ONE Platform. At these events, partners and customers were also able to present success cases of use of the Doxee Platform® in order to share and hybridize experiences across different markets on the possible options for improving customer communication operating processes. In 2024 the Marketing organization unit joined forces with the sales and operations structures to launch reporting, for some of Doxee’s biggest companies, of their ESG impact certification, achieved with Doxee’s support, for the digital transformation of customer communications. It is worth remembering that in 2023 Doxee obtained RIINA certification for its Hyperion tool for measurement of improving impacts on CO2 emissions levels. Information Security and Data Protection Doxee has always focused on Information Security and Data Protection, areas of fundamental importance for the Company and its Customers which have always been the target of major investments and constant updates. Specifically, 2024 saw the conclusion of the fourth cycle of Ethical Phishing, which achieved the planned KPI (Click-Rate) of <15%. This activity will continue in 2025 and will be extended to the group companies. The monthly steering meetings of the Data Protection Committee and the Information Security Committee were regularly held, as well as the periodic meetings with the Supervisory Body 231, sharing the monthly reports on Information Security Incidents and the relative KPIs with them both.
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28 As set out in the Integrated Management System, the reviews of the risk analyses, processes, policies and internal audit activities are ongoing in preparation for the recertification audit of the Information Security Management System (ISMS) in accordance with the ISO/IEC 27001 standard, expanded to include the controls of ISO/IEC 27017 and ISO/IEC 27018. Recertification, with updating of the 2022 scheme, is scheduled by the end of January 2025. The monitoring of Information Security and the Protection of Personal Data continued uninterrupted, in line with the current regulations, also through first, second and third party audits. During 2024 Doxee underwent 78 second-party assessments by 48 different legal entities. The activities necessary for compliance with Regulation (EU) 2022/2554 (DORA) and Directive (EU) 2022/2555 (NIS2) adopted in Italy by Legislative Decree 138/2024 are in place. With regard to NIS2 in particular, Doxee is classified in the “Trust Service Provider” category. At the same time, during 2024 analyses were begun in order to assess the adoption and adaptation of current Information Security and Data Protection practices to the specific operating and regulatory characteristics of the subsidiaries, in order to gradually harmonize the governance system at the Group scale, while respecting the local context in each country. Compliance and disclosure on certifications During 2024 the initial steps were taken towards standardization of compliance models within the Group, bearing in mind the national regulatory frameworks in force in the countries where the subsidiaries are registered, with the aim of guaranteeing uniform governance which still respects the specific characteristics of local law. The first tangible action was the extension of the new version of the Code of Ethics, applied to all subsidiaries further to approval by the Board of Directors of Doxee S.p.A. meeting on December 10, 2024. In February 2024 Doxee S.p.A. passed the ISO 9001/ISO 27001 surveillance audit for the certification of its Integrated Quality and Information Security Management System, in March 2024 it passed the audit for renewal of the ISO 14001 certification of its environmental management system, and in October 2024 it passed the surveillance audit for its Anti-Bribery and Corruption Management System, with ISO 37001 certification. Doxee AT and Doxee DE obtained their first 27001 certification in 2024. Doxee S.p.A. also continued its activities relating to the new Guidelines of the AgID (Agenzia per L’Italia Digitale) and its registration with the specific AgID Marketplace for suppliers of long-term digital preservation services and with the specific ACN (formerly AgID now Agenzia per la Cybersicurezza Nazionale) Marketplace as a qualified provider of cloud services to public sector bodies, as well as its qualification as an Access Point (AP) and Service Metatdata Publisher (SMP) provider with PEPPOL certification and AgID accreditation.
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29 Disclosure on certifications ISO 37001 Anti-Bribery Management System Doxee SpA ISO/ IEC 27001 Information Security Management System Doxee SpA Doxee AT Doxee DE ISO 9001 Quality management system Doxee SpA ISO 14001 Environmental Management System Doxee SpA AgID Qualification Procedure for qualification of suppliers of Software as a service (Saas) to the Public Administration Doxee SpA AP/SMP Qualification Certification as Access Point Provider on the PEPPOL network Doxee SpA EcoVadis Bronze ranking[1]. Overall score of: 63/100 Doxee SpA B Corp Certification Overall score: 81.1 Doxee SpA Open-es Open-es level 10/12 achieved, score of 84/100 Doxee SpA Synesgy ESG questionnaire compiled in August 2024 Doxee SpA All certifying entity audits conducted during the year were passed.
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30 Sustainability and environmental disclosure In 2024 Doxee S.p.A., a B CORP certified company, confirmed its commitment to complying with the highest social and environmental performance standards set for Benefit Corporations, oriented by their Articles of Association to promoting an inclusive, equitable and regenerative economic system and constantly improving their impact on the environment. In 2024, as in previous years, the Company issued its Sustainability Report on a voluntary basis, providing disclosure on a selection of the GRI Sustainability Reporting Standards published by the Global Reporting Initiative (GRI), under the "Referenced" reporting option. Doxee's focus on sustainability issues is confirmed through the adoption of internal measures aimed at pursuing business ethics goals, with a particular focus on legality. During 2024, the Anti-Bribery and Corruption Management System, certified in accordance with ISO 37001, was made fully operational, confirming the maximum score (three stars) of the legality rating by the Italian Competition and Market Authority (AGCM), and the procedure for the management of "whistleblowing" reports was made fully operational, in accordance with current legislation (Italian Legislative Decree No. 24/2023), making available a specific online course for all employees. ESG (Environment-Social-Governance) activities continued to combine the company’s economic and technological development with public benefit purposes, operating in a responsible, sustainable and transparent manner in relation to individuals, communities, territories and the environment, cultural and social assets, entities and associations and other stakeholders. In August 2024, Doxee S.p.A. completed the new assessment by Ecovadis, a platform for ESG assessment of companies, and at the end of 2024 it also completed ESG assessments on the Synesgy (Crif) and Open-es platforms. Moreover, during the year it issued its fourth Impact Report to provide disclosure on the results achieved in relation to the six public benefit purposes, as required by the regulations for Benefit Corporations. Thanks in part to significant research and development initiatives, Doxee has continued on its path of developing innovative IT solutions with a strong digital and customer experience orientation, generating benefits both in terms of environmental impact and in simplifying processes. Also in 2024, Doxee finalized its second Commuting Plan (PSCL), approved by the Board of Directors, with the goal of mapping and optimizing options for getting to workplaces and its employees' commutes. In terms of environmental policy, the Company continued to monitor environmental data as well as checking regulatory compliance, as required by the relevant Management System, to enable the evaluation and introduction of specific improvement actions. In particular, the gradual replacement of the company fleet with hybrid cars continues, while the contract for the supply to the Modena headquarters of electricity produced 100% from renewable sources was renewed. In addition, during 2024 initial steps were outlined for the evaluation of measures to extend to the other Group companies an approach to sustainability issues consistent with those in place at Doxee S.p.A..
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31 Human Resources At December 31, 2024, the Group had 153 employees, broken down as follows: Number of employees by category Average 2024 % Final 2024 % Average 2023 % Final 2023 % Senior managers 11.5 6.85% 11 7.19% 12 6.38% 12 6.56% Middle managers 23 13.69% 22 14.38% 22.5 11.97% 24 13.11% Clerical staff 133.5 79.46% 120 78.43% 153.5 81.65% 147 80.33% Total 168 100.00% 153 100.00% 188 100.00% 183 100.00% In line with the Group’s reorganization plan, 2024 saw an overall reduction in the number of employees, enabled first and foremost by the benefits derived from use of the new releases of the Doxee Platform, which provide more efficient processes than in the past and thus permit optimization of the use of the company’s personnel. The overall decrease in the workforce was also led by the process of organizational rationalization following on from the acquisition of Doxee AT (formerly Infinica) within the O3 strategic project - ONE Company project stream. This rationalization process has also opened out new opportunities, enabling the hiring of new recruits and facilitating the renewal of skills within the organization, especially in the AT Region. Remaining in the context of the O3 project, the reduction in the workforce is also in line with the One Value Proposition project stream, under which the company plans to reposition itself on the top enterprise clientele segment, involving a smaller number of projects which, although of longer duration, will require fewer employees working in parallel. Mandatory training Pursuant to Italian Leg. Decree 81/2008 on occupational health and safety, the general, specific, and refresher occupational safety training activities again continued in 2024. Periodic courses and refreshers on topics regarding the Management Systems and Company Certifications, as well as Information Security and Data Protection, were provided. Internal and external training Based on the analysis of training requirements, the following types of training activities were implemented: • Internal technical training provided by qualified Doxee staff, in order to reinforce technical and product skills to align competences across staff, both within a single operating unit and across different units, with a particular focus on the most junior personnel. • Internal technical training was provided both in the classroom and through e-learning courses via the Confluence platform, now available to all employees, which offers training courses focused on the company's product/service technology. The platform is also used for onboarding processes, which involve all new hires.
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32 • Internal courses on topics of compliance, processes and certifications, in addition to Information Security, Data Protection and Bribery Prevention • External courses included English language courses via the Fluentify platform in the first semester and courses of various kinds, to strengthen both technical skills and more general skills, such as behavioral and managerial skills, available to all employees in the Udemy and Study in Action platforms. • Leading summits, workshops and conventions on IT and Marketing topics • Training on Doxee technology provided to Partners, both in the classroom and through e-learning. RISK ANALYSIS 1. Market risk Market risk is the risk that changes in exchange rates, interest rates, and product prices will negatively affect the value of assets, liabilities, or expected cash flows. The Company is not subject to seasonality that could cause significant fluctuations in cash flows. 2. Foreign exchange risk Foreign exchange risk is the risk that the items in foreign currency change in a negative manner in the period from the time in which the target exchange rate is defined or commitments to collect and pay amounts in foreign currency at a future date, and the time when those commitments are transformed into orders and, lastly, into turnover. The Company’s exposure to this type of risk is not considered significant. 3. Interest rate risk Interest rate risk is the risk of an uncontrolled increase in charges deriving from the payment of interest inked to floating rates on medium/long-term loans. The goal of managing interest rate risk is to limit and stabilize outflows associated with the interest paid on the loans concerned. During FY 2024 the company did not take out any large loans with variable interest rate for which hedging was necessary. 4. Credit risk Credit risk represents the company's exposure to potential losses arising from the counterparty's failure to meet its financial obligations. It is measured in commercial terms, correlated with the type of customers, contractual terms, sales concentration, as well as financial terms, i.e. relating to the type of counterparties used in financial transactions. Credit risk is mitigated by the absence of major exposures due to the concentration of positions, as the company has a large number of customers and turnover is widely spread. 5. Liquidity risk Liquidity risk is the risk that, because of the inability to access new funding or sell assets on the market, the company will fail to meet its payment obligations, which could impact its financial performance in the event that it has to incur additional costs to meet its obligations
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33 or, in the worst-case scenario, face insolvency – which would jeopardize its ability to continue as a going concern. The company systematically pays its debts as they fall due, which allows them to operate in the market with the flexibility and reliability required to maintain the right balance between accessing and using financial resources. The company manages liquidity risk by carefully monitoring the cash and cash equivalents required in the ordinary course of business as well as the availability of credit lines that ensure an adequate of level of resources to meet potential financing needs. This consists largely in constantly monitoring the cash pool of receipts and payments of all entities, striving to maintain a balance in terms of maturity and composition of the liabilities. Specifically, this allows monitoring the flows of resources from or used in ordinary operating activities. As for the management of resources used in investing activities, the Group usually prefers securing specific long-term financing. 6. Country risk Country risk derives from the social-political instability of the countries where the various companies operate. The Group is not considered to be exposed to this problem, as it does not operate in countries with a high “country risk”, except to a marginal extent. TRANSACTIONS WITH RELATED PARTIES The transactions with related parties reported below essentially regarded the exchange of goods and the provision of services between Doxee S.p.A. and the Group companies (subsidiaries and associated), as well as transactions to optimize the management of the Group treasury. Those transactions are part of the company’s ordinary operations, and are concluded at normal market conditions, i.e. the conditions that would be established between independent parties. TRANSACTIONS WITH SUBSIDIARIES, PARENT COMPANIES AND ASSOCIATES For the definition of “Related Parties” reference is made to IAS 24, approved by Regulation EC no. 1725/2003. Intercompany transactions are carried out as part of ordinary operations and at normal market conditions. Transactions with related parties mainly refer to commercial and financial transactions, as well as the participation in tax consolidation. The relationships in force at 12/31/2024 and at 12/31/2023 between the parent and the other Doxee Group companies are shown below:
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34 Trade receivables Value at 12/31/2024 Value at 12/31/2023 Changes Receivables from group companies (in thousands of Euro) Doxee USA Inc 715 715 0 Doxee Slovak s.r.o. 41 4 37 Doxee Czech s.r.o. 55 37 19 Babelee S.r.l. 57 59 -2 Doxee CEE GmbH 256 627 -370 Infinica GmbH 118 0 118 Total 1,243 1,442 -199 Trade payables and other payables Value at 12/31/2024 Value at 12/31/2023 Changes Payables to subsidiaries (in thousands of Euro) Infinica Slovak s.r.o. 349 0 349 Doxee Czech s.r.o. 0 200 -200 Babelee S.r.l. 47 57 -9 Doxee DE 14 0 14 Infinica GmbH 32 267 -235 Total 442 523 -81 The following are the intergroup Revenues and Costs at 12/31/2024 and at 12/31/2023: Income Statement Value at 12/31/2024 Value at 12/31/2023 Change Revenues due to group companies (in thousands of Euro) Doxee Slovak s.r.o. 90 9 80 Doxee Czech s.r.o. 112 141 -30 Babelee S.r.l. 0 8 -8 Doxee AT Gmbh 205 0 205 Doxee CEE 0 120 -120 Total 406 279 128 Income Statement Value at 12/31/2024 Value at 12/31/2023 Change Costs for services from group companies (in thousands of Euro) Doxee USA Inc 156 161 -5 Babelee Srl 162 333 -171 Infinica AT 592 870 -279 Infinica SK 175 0 175 Doxee DE 14 0 14 Total 1,098 1,364 -267
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35 TREASURY SHARES At the reporting date of December 31, 2024, the Parent held 26,500 treasury shares, with a value of Euro 211,225. Treasury shares bought back are recognized at cost and applied as a decrease in equity. The purchase, sale or elimination of treasury shares does not give rise to any gains or losses in the income statement. The difference between the purchase value and the consideration, in the event of reissue, is recognized in the share premium reserve. None of the Group companies owns any interest in the holding company P&S S.p.A. SUBSEQUENT SIGNIFICANT EVENTS After the end of the financial year, the company acquired a number of customers in the utilities and insurance sector. FORESEEABLE EVOLUTION OF OPERATIONS The company has noted, and wishes to inform its stakeholders, that commercial opportunities on both its main markets are growing. Therefore, the Group’s main objectives are: - Organic growth on its main markets, also through investments expected to take place in the second semester of 2025 in order to activate a model involving sales through partners. - Confirmation of the investments for further integration of the Doxee Platform®, including a major release called ONE Portal, planned for the second semester of 2025 - The development of AI agents to reduce the costs of migration from previous technologies - the expansion of use of the Doxee Platform® to its customer base to increase efficiency, reduce operating costs and activate opportunities for upselling and cross selling made available by the integration (ONE Platform) completed during 2024. - pursuance of additional certification and compliance standards, especially with regard to the DORA legislation and the extension of existing certifications to the DACH subsidiaries - upskilling and reskilling of personnel in areas scheduled for automation due to processes where the company intends to introduce AI agents - investments to strengthen the Group’s brand awareness and participation at commercial and marketing events - the restyling of the website to focus on technology vendor and ONE Value Proposition positioning Last but not least, with regard to the financial sustainability of the measures described above and the financial sustainability in general, through the actions it has taken the Group intends to pursue the planned reduction of the Net Financial Position, which it does not believe it will have to renegotiate with the banks.
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36 USE OF DERIVATIVE FINANCIAL INSTRUMENTS On January 28, 2021, the company entered into an “interest rate swap” derivative contract with an initial notional amount of Euro 1,000,000 to hedge interest rate risk on a loan from Crédit Agricole. The fair value of said derivative at December 31, 2024 was positive Euro 521.45. Effective date 01/28/2021 Maturity date 01/28/2025 Type IRS – Interest Rate Swap Objective Hedging Initial notional value 1,000,000 Euro Underlying financial risk Interest rate risk Fair value (MTM) at 12/31/2024 521.45 Euro Hedged liability Loan On July 22, 2022 the company entered into an “interest rate swap” derivative contract with an initial notional amount of Euro 3,000,000 to hedge interest rate risk on a loan from BPER Banca. The fair value of said derivative at December 31, 2024 was negative by Euro 39,028.32 Effective date 07/22/2022 Maturity date 05/21/2028 Type IRS – Interest Rate Swap Objective Hedging Initial notional value 3,000,000 Euro Underlying financial risk Interest rate risk Fair value (MTM) at 12/31/2023 -39,028.32 Hedged liability BPER loan On July 28, 2022, the company entered into an “interest rate swap” derivative contract with an initial notional amount of Euro 500,000 to hedge interest rate risk on a loan from Banco BPM S.p.A. The fair value of said derivative at December 31, 2024 was positive by Euro 1,433.95 Effective date 07/28/2022 Maturity date 06/30/2027 Type IRS – Interest Rate Swap Objective Hedging Initial notional value 500,000 Euro Underlying financial risk Interest rate risk Fair value (MTM) at 12/31/2024 1,433.95 Hedged liability Banco BPM loan
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37 On October 28, 2022, the company entered into an “interest rate swap” derivative contract with an initial notional amount of Euro 3,000,000 to hedge interest rate risk on a loan from Unicredit S.p.A. The fair value of said derivative at December 31, 2024 was negative by Euro 74,839.98. Effective date 10/28/2022 Maturity date 09/30/2030 Type IRS – Interest Rate Swap Objective Hedging Initial notional value 3,000,000 Euro Underlying financial risk Interest rate risk Fair value (MTM) at 12/31/2024 -78,436.00 Hedged liability Banco BPM loan SECONDARY LOCATIONS As required by the provisions of art. 2428 of the Italian Civil Code, we report that the company also operates from the following secondary locations: - Via Ostiense, 92 in Rome - Vico I Catalano 19 in Catanzaro Modena (MO), March 24, 2025 The Chairman of the Board of Directors Paolo Cavicchioli
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38 CONSOLIDATED FINANCIAL STATEMENTS OF THE DOXEE GROUP AT DECEMBER 31, 2024 The tables below set out the consolidated income statement and balance sheet of the Doxee Group at December 31, 2024, in accordance with the international accounting standards. STATEMENT OF FINANCIAL POSITION (in Euro) N.B.: 12/31/2024 12/31/2023 Non-current assets Tangible assets 8 150,797 358,854 Development costs 9 9,912,738 12,469,981 Work in progress and payments on account 10 8,358,446 6,144,646 Other intangible assets 11 4,300,262 4,833,485 Right-of-use assets 12 1,504,762 1,115,267 Goodwill 13 7,768,504 7,768,504 Non-current financial assets 14 31,386 33,785 Deferred tax assets 15 596,631 1,293,927 Other non-current assets 16 53,904 43,865 Total non-current assets 32,677,430 34,062,314 Current assets Trade receivables 17 7,542,127 8,001,751 Other receivables 18 2,378,816 3,884,710 Cash and cash equivalents and short-term deposits 19 1,057,142 776,203 Total current assets 10,978,084 12,662,664 Total assets 43,655,513 46,724,978 Equity Share capital 2,544,039 1,913,570 Share premium reserve 13,798,815 8,554,460 Other reserves 2,048,793 7,950,171 FTA reserve -1,587,598 -1,587,598 Employee benefits reserve -72,411 -94,880 Currency translation reserve -261,788 1,348 Cash flow hedge reserve -87,787 -72,794 Retained earnings/(Accumulated losses) -4,215,174 -5,012,557 Profit (loss) for the year -3,671,433 -5,103,997 Equity attributable to the Group 8,495,457 6,547,723 Minority interests in capital and reserves 0 0 Profit (loss) attributable to minority interests 0 0 Equity attributable to minority interests 0 0 Total equity 20 8,495,457 6,547,723 Non-current liabilities Non-current loans and financing 21 10,751,117 13,785,539 Non-current lease liabilities 22 919,092 833,494 Provisions for risks and charges 2,000 0
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39 Net liabilities for employee benefits 23 1,912,756 2,018,060 Deferred tax liabilities 24 972,234 1,118,612 Other non-current liabilities 25 115,509 312,138 Non-current public grants 26 2,681,847 2,130,926 Total non-current liabilities 17,354,555 20,198,769 Current liabilities Current loans and financing 21 7,311,754 6,519,371 Current lease liabilities 22 519,412 479,733 Other current financial receivables 27 776,609 673,383 Trade payables and other payables 28 8,123,139 10,690,540 Tax payables 29 800,484 606,244 Public grants 26 274,103 1,009,214 Total current liabilities 17,805,501 19,978,485 Total equity and liabilities 43,655,513 46,724,977 INCOME STATEMENT (in Euro) N.B.: 12/31/2024 12/31/2023 Revenues from contracts with clients 30 26,473,265 25,843,640 Other revenues and income 31 1,585,262 868,916 Internally generated fixed assets 32 1,789,644 2,820,380 Raw materials and consumables 33 -7,958 -8,565 Services costs 33 -14,204,773 -14,903,795 Costs for employee benefits 34 -12,380,858 -13,548,946 Other operating costs 35 -313,095 -1,272,077 EBITDA 2,941,488 -200,447 Amortization of intangible assets 36 -4,498,846 -3,700,266 Depreciation of tangible assets 36 -105,335 -249,737 Depreciation of rights-of-use 36 -591,381 -391,185 Financial income 37 144,328 286,394 Financial expenses 37 -1,204,968 -1,065,848 Foreign exchange gains (losses) 37 235,000 -303,662 Profit (loss) before tax from continuing operations -3,079,714 -5,624,751 Income taxes 38 -591,719 520,754 - Current taxes -43,012 -2,229 - Deferred tax assets -695,084 434,061 - Deferred tax liabilities 146,378 88,922 Profit (loss) for the year -3,671,433 -5,103,997 of which: - pertaining to the group -3,671,433 -5,103,997 attributable to minority interests 0 0
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40 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in Euro) 12/31/2024 12/31/2023 Change A. Profit (loss) for the year -3,671,433 -5,103,997 1,432,564 Net actuarial gains/(losses) on defined benefit pension plans 22,469 894 21,575 B. Total items that cannot be reclassified to the income statement 22,469 894 21,575 Translation of foreign financial statements -263,136 -102,608 -160,528 Net gains/(losses) on cash flow hedges -14,993 137,873 -152,866 C. Total items reclassified/that cannot be reclassified to the income statement -278,128 35,265 -313,393 D. Total components of comprehensive income (B + C) -255,659 36,159 -291,818 E. Comprehensive income/(loss) (A + D) -3,927,093 -5,067,838 1,140,746 of which: - pertaining to the group -3,927,093 -5,067,838 1,140,746 - attributable to minority interests 0 0 0 CONSOLIDATED CASH FLOW STATEMENT The consolidated cash flow statement of the Doxee Group for 2024 and the comparison with the previous year are shown below: CONSOLIDATED CASH FLOW STATEMENT (in Euro) 12/31/2024 12/31/2023 Change Profit (loss) before tax -3,079,714 -5,624,751 2,545,037 Reversal of amort./depreciation and write-downs and write-backs of tangible and intangible assets 5,195,562 4,341,188 854,374 Reversal of financial (income)/charges 1,060,641 1,083,116 -22,475 Reversal of allocations to provisions and other 0 920,715 -920,715 Net tax paid 134,404 0 134,404 Change in trade receivables 493,364 -171,517 664,881 Change in trade payables -2,933,654 246,310 -3,179,964 Change in other receivables 462,102 -255,577 717,679 Change in other payables -68,257 799,080 -867,337 Change in tax receivables 816,840 -27,810 844,650 Change in tax payables 233,735 -27,005 260,740 Change in provisions for personnel -75,887 348,849 -424,736 Change in other funds 2,000 0 2,000 A. Net cash flow generated/(absorbed) by operating activities 2,241,135 1,632,598 608,537 Investments in tangible and intang. assets -3,672,680 -7,446,579 3,773,899 Equity investments 1,000 -14,803 15,803 B. Cash flow generated/(absorbed) by investing activities -3,671,680 -7,461,382 3,789,702 Change in current financial assets 0 -1,825 1,825 Interest income and other financial income 144,328 286,394 -142,066 Change in payables to banks for cash credit lines 2,239,748 -242,564 2,482,312 Change in payables to banks and other lenders due to repayment of loans and financing -5,535,941 -2,343,666 -3,192,275 Change in payables to banks and other lenders due to provision of loans and financing 1,068,719 7,584,000 -6,515,282 Change in other financial payables -52,379 562,022 -614,401 Interest expense and other financial charges -1,062,526 -1,369,510 306,984 Repayment of principal on lease liabilities -702,879 -434,597 -268,282
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41 720 189. Capital increase against payment 5,874,824 0 5,874,824 Sale/(purchase) of treasury shares 0 -164,630 164,630 C. Cash flow generated/(absorbed) by financing activities 1,973,892 3,875,624 -1,901,732 D. Exchange rate effect -262,409 137,873 -400,282 E. Total cash flow generated/(absorbed) during the period (A + B + C + D) 280,939 -1,815,287 2,096,225 F. Net cash and cash equivalents at the beginning of the period 776,203 2,591,489 G. Net cash and cash equivalents at the end of the period (E + F) 1,057,142 776,203 Statement of changes in consolidated equity Equity Share capital Share premium reserve Other reserves FTA reserve Employee benefits reserve Currency translation reserve Cash flow hedge reserve Retained earnings/(Accumulated losses) Profit (loss) for the year pertaining to the group Equity attributable to the Group Equity attributable to minority interests Total Amount at 12/31/2023 1,913,570 8,554,460 7,950,171 -1,587,598 -94,880 1,348 -72,794 -5,012,557 -5,103,997 6,547,723 0 6,547,723 Allocation of profit -5,901,378 797,380 5,103,998 0 0 Capital increase against payment 630,469 5,244,355 5,874,824 5874824 Other changes 2 2 2 Stock grant - - - Comprehensive income (loss) 22,469 -263,136 -14,993 -255,659 -255,659 Treasury shares - - - Profit (loss) for the year -3,671,433 -3,671,433 - -3,671,433 Amount at 12/31/2024 2,544,039 13,798,815 2,048,793 -1,587,598 -72,410 -261,788 -87,787 -4,215,174 -3,671,433 8,495,457 - 8,495,457 NOTES TO THE FINANCIAL STATEMENTS 1. FORM AND CONTENT OF THE CONSOLIDATED FINANCIAL STATEMENTS The Doxee Group has drawn up these consolidated financial statements in compliance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and endorsed by the European Union. “IFRS” shall also mean the International Accounting Standards (“IAS”) still in force, as well as all the interpretation documents issued by the Interpretation Committee, previously called the International Financial Reporting Interpretations Committee (“IFRIC”) and, before that, the Standing Interpretations Committee (“SIC”). The Doxee Group first adopted the international financial reporting standards for the year ending December 31, 2022, meaning that the date to which the IAS/IFRSs standards were first applied was January 1, 2021. The layout used for the consolidated statement of financial position involves distinguishing between current and non-current assets and liabilities, while the layout used for the consolidated income statement involves classifying costs based on their nature. In the consolidated cash flow statement, cash flows deriving from operating activities are presented using the indirect methods, in which the profit or loss for the year is adjusted by
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42 the effects of non-monetary transactions, any deferral or allocation of previous or future operating collections or payment, and elements of revenues or costs connected with the cash flows deriving from investing activities or financing activities. The layouts of the consolidated statement of financial position, consolidated income statement, consolidated statement of comprehensive income, statement of changes in consolidated equity and the consolidated cash flow statement are presented in Euro. The amounts shown in the notes are expressed in Euro. As specified in greater detail later in this document, the directors have drawn up the financial statements on the assumption that the requirements for the company to continue as a going concern are met. 3. SCOPE OF CONSOLIDATION These consolidated financial statements were drawn up based on the income statements and statements of financial position at December 31, 2024 of the consolidated companies, drawn up in accordance with the IAS/IFRS standards of the Group. The consolidated companies and the percentage of direct or indirect ownership by Doxee S.p.A. are listed below. Doxee S.p.A. - Parent Registered office: Modena, Italy Equity at 12/31/2024: Euro 10,778,848 Reporting currency: Euro Result for financial year ending 12/31/2024: Euro -3,457,724.02 Fully paid-up share capital: Euro 2,544,039.15 Status: Parent Company Doxee USA Inc. Registered office: Fort Lauderdale, Florida, United States of America Equity at 12/31/2024: Euro -4,196,534.47 Reporting currency: US dollar Result for financial year ending 12/31/2024: Euro 263,031.85 Fully paid-up share capital: Euro 37,188 Status: American subsidiary Direct ownership share: 51.02% Indirect ownership share: 0% Doxee Slovak s.r.o. Registered office: Bratislava, Slovak Republic Equity at 12/31/2024: Euro 478,597 Reporting currency: Euro Result for financial year ending 12/31/2024: Euro 98,754.64 Fully paid-up share capital: Euro 10,000.00 Status: Slovak subsidiary Direct ownership share: 100% Doxee Czech s.r.o. Registered office: Prague, Czech Republic Equity at 12/31/2024: Euro 339,668.51 Reporting currency: Czech koruna Result for financial year ending 12/31/2024: Euro -48,009.20 Fully paid-up share capital: Euro 9,252.00 Condition: subsidiary in the Czech Republic Direct ownership share: 100% The above percentages of ownership remained unchanged between the two periods.
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43 Babelee S.r.l. Registered office: Milan, Italy Equity at 12/31/2024: Euro -187,288.96 Reporting currency: Euro Result for financial year ending 12/31/2024: Euro -214,334.29 Fully paid-up share capital: Euro 12,193.00 Status: Italian subsidiary Direct ownership share at December 31, 2024: 100.00% Indirect ownership share: 0% It should be noted that the parent company’s investment in the share capital of the subsidiary Babelee S.r.l. increased from 91.07% to 100% in February 2023, following Doxee S.p.A.’s exercise of the call option to purchase the remaining 8.93%. Doxee CEE GmbH Registered office: Vienna, Austria Equity at 12/31/2024: Euro 4,324,748.31 Reporting currency: Euro Result for financial year ending 12/31/2024: Euro -221,587.81 Fully paid-up share capital: Euro 61,000.00 Status: Austrian subsidiary Direct ownership share: 58% Doxee AT GmbH (formerly Infinica AT GmbH) Registered office: Vienna, Austria Result for financial year ending 12/31/2024: Euro -306,766.54 Reporting currency: Euro Status: Austrian subsidiary Fully paid-up share capital: Euro 36,000.00 Direct ownership share at December 31, 2024: 0.0% Equity at 12/31/2024: Euro -207,822.55 Indirect ownership share: 55.1% In the initial months of 2023, the investment in Doxee AT Gmbh at 12/31/2022 was transferred by the parent Doxee S.p.A. to the subsidiary Doxee CEE GMBH as part of a strategic operation concluded with Simest S.p.A. Thus, that operation did not change the scope of consolidation. DOXEE DE (formerly Infinica DE) Registered office: Germany Result for financial year ending 12/31/2024: Euro -120,445.59 Reporting currency: Euro Condition: German subsidiary Fully paid-up share capital: Euro 25,000.00 Direct ownership share at December 31, 2024: 100.00% by Doxee AT GmbH Equity at 12/31/2024: Euro -145,079.52 Indirect ownership share: 55.1% INFINICA SK Registered office: Slovak Republic Result for financial year ending 12/31/2024: Euro 4,960.80 Reporting currency: Euro Status: Slovak subsidiary Fully paid-up share capital: Euro 5,000.00 Direct ownership share at December 31, 2024: 100% by Infinica Doxee AT GmbH Equity at 12/31/2024: Euro 35,947.72 Indirect ownership share: 55.1%
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44 4. SIGNIFICANT EVENTS DURING FY 2024 Merger by incorporation of wholly-owned subsidiary Babelee S.r.l. in Doxee S.p.A. It should be noted that the merger by incorporation of the subsidiary Babelee S.r.l. in Doxee S.p.A. is currently nearing completion. This operation was approved by the Boards of Directors of both companies on September 29, 2024, by the Board of Directors of Doxee S.p.A. meeting in extraordinary session with minutes taken by Notary Public Silvio Vezzi, and by the extraordinary shareholders’ meeting of Babelee S.r.l. held on January 29, 2025; the deed of merger is expected to be signed in April 2025. This merger will legally come into force, pursuant to Article 2504-bis par. 2 of the Italian Civil Code, from the last day of the month during which the last of the registrations envisaged by Article 2504 par. 2 of the Italian Civil Code was made and executed pursuant to Article 2504 par. 3 of the Italian Civil Code, i.e. from the date given in the deed of merger. The incorporating company will take over all creditor and debtor legal relationships of the incorporated company from the date when the merger actually comes into force. For accounting and tax purposes, pursuant to Article 2504-bis of the Italian Civil Code and Article 172, par. 9, of Italian Presidential Decree 917/86 (TUIR), the operations of the incorporated company will be registered in the financial statements of the incorporating company starting from the first day of the financial year during which the last registrations pursuant to Article 2504 of the Italian Civil Code are made. It should also be noted that: • with reference to the regulations governing the obligation to inform on corporate transactions contained in the Euronext Growth Milan Listing Rules, considering the relevance indicators provided in Article 12 of the Rules the planned merger does not constitute a “Significant Transaction” for the purposes of the Rules; • in accordance with the Procedure on Related Party Transactions adopted by Doxee S.p.A. in compliance with the provisions of the Rules governing related party transactions approved by Consob by resolution no. 17221 of March 12, 2010 and subsequently amended by resolution no. 17389 of June 23, 2010, since the planned merger is a transaction with a subsidiary with regard to which no other related parties have interests classified as significant, it falls within the category of exempt transactions for which, in accordance with the exemption cases and options envisaged by the Rules on related party transactions, the provisions of the aforesaid Procedure do not apply, subject to any obligations to inform. The merger derives from the need to concentrate within Doxee S.p.A. itself the business previously conducted independently by the subsidiary, through a corporate reorganization which will optimize the management of resources and the economic and financial flows currently split between the two companies. In fact, the merger will generate considerable economies of sale by eliminating duplications in the companies’ management and administration, leading to general cost savings as the business will be conducted by just one company instead of the current two. Finally, the organizational restructuring will unite and integrate decision-making processes and improve the flexibility and efficiency of the company’s organization.
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45 5. CONSOLIDATION AND CONVERSION PRINCIPLES The Consolidated Financial Statements of the Doxee Group were prepared using the financial statements of the individual companies included in the scope of consolidation prepared by the respective corporate bodies in accordance with the international accounting standards IFRS. All companies in the scope of consolidation were consolidated on a line-by-line basis. Under this method, the assets, liabilities, expenses, and income of the companies included in the scope of consolidation are fully consolidated, regardless of the percentage of ownership of the consolidating entity. The Consolidated Statement of Financial Position and Income Statement show all items of the Parent and of the other companies included in the scope of consolidation net of the following adjustments: • the carrying amount of interests in subsidiaries is eliminated against the corresponding fractions of equity; this consists in replacing the amount of the corresponding line item with the assets and liabilities of each of the consolidated companies. The difference between the purchase price of the interests and equity at the date that control of the company was obtained is attributed, where applicable, to each identifiable asset acquired, to the extent of the present value of such assets, and in any case not above their recoverable amount, as well as each identifiable liability assumed, including deferred tax assets and liabilities to be recognized as a result of the plus/minus amounts allocated to the items. Any excess resulting from such allocation: - if positive, shall be recognized in a line item within assets, named “goodwill”, as long as it meets the relevant recognition requirements, in accordance with the international accounting standard IFRS 3 “Business Combinations” (otherwise, if part or all of the excess does not correspond to a higher value of the investee, it is recognized in profit or loss); - if negative, shall be recognized in a line item within equity named “consolidation reserve”, unless part or all of it refers to expectations of unfavorable financial performance (in this case, the Group shall recognize a specific “Consolidation provision for future risks and charges” within consolidated liabilities). Specifically, the differences that arose at the date of the first consolidation between the carrying amount of interests in subsidiaries included in the scope of consolidation and the corresponding fractions of equity were allocated to the equity item “Retained earnings/(Accumulated losses)”, as these essentially refer to profits and/or losses reported by the subsidiaries after the date the relevant controlling interests were acquired; • the assets, liabilities, costs, expenses, revenues, and income of the companies included in the scope of consolidation are fully included in the Consolidated Financial Statements, regardless of the percentage of ownership of the parent company; • the dividends, revaluations, and write-downs of interests in the companies included the scope of consolidation, as well as the gains and losses resulting from intragroup sales of said interests, are eliminated; • all equity transactions between the Group and entities exercising their rights and duties as owners are recognized in consolidated equity. The share capital presented in the
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46 Consolidated Financial Statements coincides with that of the Parent. The portions of consolidated equity and profit or loss attributable to minority interests are recognized in separate line items within consolidated equity, named “Share capital and reserves attributable to minority interests” and “Profit/(Loss) for the period attributable to minority interests”, respectively. The portion of the profit or loss for the period attributable to minority interests is deducted from the overall consolidated profit or loss. If the losses attributable to minority interests of a subsidiary cause the relevant line item “Share capital and reserves attributable to minority interests” to turn negative, the deficit is attributed to controlling interests. If, subsequently, the company generates profits, the relevant portion attributable to minority interests is attributed to controlling interests to the extent necessary to recover the total amount of losses previously absorbed by the latter. If the minority interests have an explicit commitment to cover losses, and this is likely to occur, the deficit is attributed to “Share capital and reserves attributable to minority interests”; • the receivables, payables, costs, expenses, revenues, and income relating to companies included in the scope of consolidation are eliminated, and so are the guarantees, commitments, and risks relating to the companies concerned; • gains and losses arising from transactions between companies included in the scope of consolidation and not yet realized at the reporting date are eliminated. Gains and losses are not eliminated when their amount is immaterial: • to include companies that prepare their financial statements in currencies other than the Euro in the scope of consolidation, these are first translated into Euro. The financial statements expressed in a foreign currency are translated for the purposes of preparing the consolidated financial statements by using: a. the spot exchange rate at the reporting date to translate assets and liabilities; b. the average exchange rate for the period to translate line items in the income statement and the cash flows of the cash flow statement, used as an alternative to the exchange rate of each individual transaction, as allowed by IAS 21 c. the historical exchange rate at the time of their creation to translate equity reserves (other than the currency translation reserve). The Group used the following exchange rates relative to the Euro: For 12/31/2024 US dollar Annual average rate 1.0821 Spot rate at December 31, 2024 1.0389 Czech koruna Annual average rate 25.1189 Spot rate at December 31, 2024 25.185 For 12/31/2023 US dollar Annual average rate 1.0813 Spot rate at December 31, 2023 1.105 Czech koruna Annual average rate 24.0043 Spot rate at December 31, 2023 24.724
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47 The net effect of translating the financial statements of the investee into the reporting currency is recognized in the “Currency translation reserve” within consolidated equity that becomes available in the event all or part of the foreign entity is sold. 6. ACCOUNTING STANDARDS AND VALUATION CRITERIA APPLIED Background With regard to the changes in the accounting standards, changes in book values and correction of errors, reference should be made to section “5.2 - Changes in accounting standards, changes in book values, correction of errors” of section “5 - Significant events during FY 2023”. General principles of preparation The Consolidated Financial Statements have been prepared on a going concern basis, with the presentation currency of Euro, and the amounts shown rounded up/down to whole Euro, including, unless otherwise indicated, the amounts shown in the accompanying notes. The general principle adopted in preparing these consolidated financial statements is historical cost, with the exception of derivative financial instruments, measured at fair value. The most significant accounting standards adopted in preparing these consolidated financial statements are as follows: Business Combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the sum of the consideration transferred valued at fair value at the acquisition date and the amount of any minority interests in the acquiree. For each business combination, the acquirer must measure any minority interests in the acquired company at fair value or as a proportion of the minority interests in the net identifiable assets of the acquiree. The acquisition costs are charged to administrative expenses. At the acquisition date, the identifiable assets acquired and liabilities assumed are recognized at fair value, with the exception of deferred tax assets and liabilities, assets and liabilities for employee benefits, liabilities or equity instruments relating to share-based payments of the acquired company or share-based payments issued in substitution of contracts of the acquired company, and assets (or groups of assets and liabilities) held for sale, which, instead, are valued in accordance with their reference standard. Any contingent consideration must be recognized by the acquirer at fair value at the acquisition date and classified in accordance with the provisions of IFRS 3. Goodwill is initially measured at the cost that arises as the amount in excess of the sum of the considerations transferred in the business combination, the value of equity pertaining to minority interests and the fair value of any investment previously held in the acquired company, over the fair value of the net assets acquired and liabilities assumed at the acquisition date. If the value of the net assets acquired and liabilities assumed at the
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48 acquisition date exceeds the sum of the considerations transferred, the value of equity pertaining to minority interests and the fair value of any investment previously held in the acquired company, that excess is immediately recognized in the income statement as income deriving from the transaction concluded. The portion of equity pertaining to minority interests at the acquisition date may be measured at fair value or at the pro-rata amount of the value of the net assets recognized for the acquired company. The valuation method is chosen on a transaction-by-transaction basis. Any contingent considerations under the business combination agreement are measured at fair value at the acquisition date and included in the value of the considerations transferred in the business combination in order to determine goodwill. Any subsequent changes in that fair value, which can be classified as adjustments arising in the measurement period, are retrospectively included in goodwill. Changes in fair value that can be classified as adjustments arising in the measurement period are those resulting from more information on facts and circumstances that existed at the acquisition date, obtained during the measurement period (which cannot exceed the period of one year from the business combination). In business combinations achieved in stages, the investment previously held in the acquired company is revalued at fair value at the date of acquisition of control, and any resulting gains or losses are recognized in the income statement. Any values deriving from the previously held investment, recognized in Other comprehensive income (loss) are reclassified in the income statement as if the investment was sold. If the opening values of a business combination are incomplete at the reporting date for the year in which the business combination occurred, the provisional amounts of the elements for which recognition cannot be completed are recognized in the consolidated financial statements. Those provisional values are adjusted during the measurement period to take account of the new information obtained on the facts and circumstances existing at the acquisition date which, if known, would have affected the value of the assets and liabilities recognized at that date. Transactions in which the controlling company acquires or sells additional minority stakes without changing the control exercised are transactions with shareholders and, therefore, their effects must be recognized at equity: there will be no adjustments to the value of goodwill or gains or losses recognized in the income statement. Accessory charges to business combinations are recognized in the income statement in the period in which they are incurred. Tangible assets Tangible assets are composed of: • Cellphones • General plant • Equipment • Office furniture • Office machines • Hardware
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49 Tangible assets are recognized at purchase or production cost, including directly attributable accessory charges necessary to put into operation the asset to which they refer. The cost is decreased by depreciation and any impairment. Depreciation is calculated using percentages that reflect the economic and technical deterioration of the asset, and is calculated starting from the moment the asset is available for use. A large portion of tangible assets that have different useful lives are accounted for separately and depreciated based on their useful lives. The useful lives and residual values are revised annually on the closing of the separate financial statements. Charges incurred for ordinary maintenance and repairs are directly posted to the income statement for the year in which they are incurred. Gains and losses deriving from sales or disposals of tangible assets are determined as the difference between the sales revenue and the net book value of the asset, and are posted to the income statement for the year. The classes of useful lives of tangible assets are as follows: • Cellphones: 5 years • Equipment: 5 years • Office furniture: 8 years • Office machines: 5 years • Hardware: 5 years. Goodwill Goodwill is recognized as an asset with an indefinite useful life and is not amortized. Rather, each year, or more frequently if there is an indication that specific events or changed circumstances could have caused impairment, it is subject to impairment testing. Impairment is immediately recorded in the income statement and is not subsequently written back. After initial recognition, goodwill is measured net of any cumulative impairment losses. In impairment testing, the goodwill acquired in a business combination is allocated, from the acquisition date, to each single cash-generating unit or groups of cash-generating units that are expected to benefit from the synergies of the business combination, regardless of the fact that other assets or liabilities related to the acquired entity are allocated to those CGUs or groups of CGUs. Each CGU or Group of CGUs to which goodwill is allocated: • represents the lowest level at which goodwill is monitored for internal management purposes; • is no larger than the segments that can be identified for segment reporting. Any impairment is identified by comparing the book value of the cash-generating unit with its recoverable amount. If the recoverable amount of the CGU is lower than the carrying amount attributed, the related impairment will be recognized. That impairment loss is not written back if the reasons that generated it cease to exist. If the goodwill has been allocated to a cash-generating unit (CGU) and the entity disposes
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50 of part of this unit, the goodwill associated with the unit sold must be included in the book value of the asset when the gain or loss on disposal is determined. The goodwill associated with the disposed asset must be determined on the basis of the values relating to the disposed asset and the part of the CGU that was maintained. Intangible assets with a finite useful life Intangible assets with a finite useful life are valued at the purchase or production cost, net of amortization and accumulated impairment. Amortization is proportional to the period of the expected useful life of the fixed asset, and starts when the asset is available for use. Useful lives are reviewed annually and any changes are applied prospectively. Each time reasons arise that make it appropriate, intangible assets with a finite useful life are subject to impairment testing. Amortization rates Development costs: 5 years Patents: 10 years Concessions, licenses and similar rights: 3 years Impairment of assets At least once a year, it is tested whether assets and/or cash-generating units (“CGU”) to which the assets have suffered impairment. If there is evidence of such impairment, the recoverable amount of the asset/CGU is estimated. Goodwill and other intangible assets with an indefinite useful life are subject to impairment testing annually, or more frequently when there is evidence that the asset may have suffered impairment. The recoverable amount of an asset is defined as the higher of its fair value less costs to sell and its value in use. The value in use is determined by i) estimating “the income and outgoing future cash flows that will derive from the continuing use of an asset and its final disposal”, and ii) applying “the appropriate discount rate to those future cash flows”, specifically using the WACC (Weighted Average Cost of Capital) calculated according to normal practices. The projections of expected cash flows are based: i) on the most recent budgets/forecasts approved by the company’s management, and ii) on reasonable and sustainable assumptions. When it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is estimated. In the event that the recoverable amount of an asset (or of a cash-generating unit) is less than its book value, the book value is decreased to the recoverable amount and the loss is posted to the income statement. Subsequently, if the impairment of a fixed asset, other than goodwill, no longer applies or is reduced, the book value of the asset (or the cash-generating unit) is increased up to the new estimate of the recoverable amount (which, in any event, cannot exceed the net carrying amount that the asset would have if no write-downs due to impairment had been recognized). That write-back is immediately recorded in the income statement.
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51 Leases – Rights-of-use At the date when the assets covered by the lease contract are available for use by the Company, the lease contracts are recorded as rights-of-use in the assets, with a financial liability as an offsetting entry. The cost of the lease payment is broken down into its components of financial charge, which is recorded in the income statement over the term of the contract, and repayment of principal, recorded as a decrease in the financial liability. The right-of-use assets are amortized monthly on a straight-line basis, in the shorter period of the useful life of the asset and the term of the contract. Right-of-use assets and financial liabilities are initially measured at the present value of the future payments. The present value of lease liabilities includes the following payments: • fixed payments; • variable payments based on an index or interest rate; • exercise price of redemption option, if it is reasonably certain that the option will be exercised; • payment of penalties for terminating the contract, if it is reasonably certain that the option to terminate the contract will be exercised; • optional payments following the period in which cancellation is not permitted, if it is reasonably certain that the contract will be extended beyond the period in which cancellation is not permitted. The lease liability is initially recognized at the present value of future payments at the start date of the contract, discounted at the implicit interest rate of the lease. If that rate cannot be readily determined, the interest rate used will be the incremental rate of indebtedness of the lessee. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow through a contract with a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. Specifically, to estimate the incremental borrowing rate, the Company used as reference the interest rate of government securities with a similar duration as the duration of the leases, as well as the credit spread taken from the loans obtained. The right-of-use assets are valued at cost, which is composed of the following elements: • initial amount of the lease liability; • payments made before the start of the contract, net of lease incentives received; • directly attributable accessory charges; • estimated costs for dismantling or restoration. • The lease payments associated with the following types of lease contracts are recognized to the income statement on a straight-line basis over the terms of their contracts: • contracts with a term of less than 12 months for all asset classes; • contracts whose underlying asset is a low-value asset, i.e., the unit value of the underlying assets does not exceed Euro 5 thousand when new; • contracts for which the payment for the right-of-use of the underlying asset varies
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52 depending on changes in facts or circumstances (not linked to the performance of sales), which cannot be forecast at the initial date. Investments Investments in subsidiaries are valued at cost, including directly attributable charges, possibly written down due to impairment. The positive differences arising on the purchase of the investments between the price and the corresponding shares of equity are maintained in the carrying amount of the investments. Where there is evidence that the investments may have suffered impairment, they are subject to impairment testing and written down, if necessary. In order for the impairment to be charged to the income statement, there must be objective evidence that events have occurred that impact estimated future cash flows of the investments. The original value is restored in subsequent years, should the reasons for the write-downs no longer hold true. Control Subsidiaries are those companies over which Doxee S.p.A. exercises control, having the direct or indirect power to determine the financial and operating policies and to obtain the benefits of the operations of these companies. In general, companies in which Doxee holds over 50% of voting rights, also taking account of potential voting rights which cannot be currently exercised, are considered subsidiaries. Investments in associates An associate is an enterprise over which significant influence, but not control or joint control, is exercised, by participating in decisions on the financial and operational policies of the investee. Those investments are valued at cost, including directly attributable charges, possibly written down due to impairment. Investments in other companies Based on IFRS 9, investments in other companies are classified under non-current assets, initially valued at purchase cost, and subsequently measured at fair value. Considering the specific investments, as well as their low value, it was decided that any cost written down due to impairment, in any event, represent an acceptable approximation of the fair value, and any differences are insignificant for fair representation in the financial statements. Non-current financial assets Non-current financial assets other than investments, equivalent to financial liabilities, are recorded in accordance with IFRS 9. This valuation category includes equity instruments for which the Company – at the time of initial recognition or transition – exercised the irrevocable option to present the gains and losses from changes in fair value in equity (FVOCI). “Other financial assets at fair value through other comprehensive income” are classified under non-current assets. These are initially recognized at fair value, including the transaction costs directly attributable to the acquisition. They are subsequently measured at fair value, and the gains and losses from changes in fair value are recognized in a specific equity reserve. That reserve will not be reversed to the income statement. If the financial asset is sold, the deferred amount in equity is reclassified to retained earnings. Dividends deriving from those financial assets are recognized in the income statement when the right to receive them arises.
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53 Loans and receivables not held for trading and assets held to maturity are valued at amortized cost, using the effective interest rate method. When the financial assets have no fixed maturity, they are valued at purchase cost. Tests are regularly conducted to verify whether there is objective evidence of impairment of financial assets. If there is objective evidence, the impairment must be recognized as a cost in the income statement for the period. Financial instruments A financial instrument is any contract generating a financial asset for an entity and a financial liability or an equity instrument for another entity. Derivative financial instruments The company uses interest rates swaps to hedge the risk of fluctuations in interest rates. Those derivative financial instruments are initially recognized at fair value at the date on which the derivative contract is entered into, and subsequently are once again measured at fair value. Derivatives are recorded as financial assets when their fair value is positive and as financial liabilities when their fair value is negative. Receivables Receivables are initially recognized at fair value, normally represented by the consideration agreed or the present value of the amount to be collected. They are subsequently valued at amortized cost, decreased in the event of impairment. The amortized cost is calculated using the effective interest rate criterion, which is equal to the discount rate which, applied to future cash flows, renders the present book value of those flows equal to the initial fair value. Receivables in currencies different from the functional currently of the single entities are adjusted at the period-end exchange rates, with an offsetting entry in the income statement. Receivables are eliminated where the right to receive the cash flows is eliminated, when all the risks and benefits connected with holding the receivable have substantially been transferred, or when the receivable is considered definitively irrecoverable after all the necessary recovery procedures have been carried out. At the time the receivable is written off, the related provisions are also reversed, if the receivable had been previously written down. Payables Payables are initially recognized at fair value, normally represented by the consideration agreed or the present value of the amount to be paid. They are subsequently valued at amortized cost. The amortized cost is calculated using the effective interest rate criterion, which is equal to the discount rate which, applied to future cash flows, renders the present book value of those flows equal to the initial fair value. Payables in currencies different from the functional currently of the single entities are adjusted at the year-end exchange rates, with an offsetting entry in the income statement.
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54 Cash and cash equivalents Cash and cash equivalents include cash, bank current accounts, postal current accounts, demand deposits and other short-term, highly liquid financial investments which can be readily converted into cash and are subject to an insignificant risk of changes in value. Financial payables Financial liabilities include financial payables, including payables of the deferred portion of the price for assignment of receivables with recourse, as well as other financial liabilities. Financial liabilities different from derivative financial instruments are initially recognized at fair value less transaction costs. Subsequently, they are valued at amortized cost, i.e. the initial value, less repayments of principal already made, adjusted (upwards or downwards) based on the amortization (using the effective interest rate method) of any differences between the initial value and the value on maturity. Employee benefits The portion of premiums paid for defined contribution plans accrued during the year is recognized in the income statement. Up to December 31, 2006, employee severance indemnity was considered as a defined benefit plan. The rules for those provisions were changes by Italian Law no. 296 of December 27, 2006 (“2007 Budget Law”) and subsequent Decrees and Regulations issued in the early months of 2007. In light of these amendments, and in particular with reference to companies with at least 50 employees, employee severance indemnity is currently considered a defined benefit plan solely for the portions accrued prior to January 1, 2007 (and not yet liquidated as of the reporting date), whereas after said date it is deemed akin to a defined contribution plan. Defined benefit pension plans, which also include the employee severance indemnity due to employees pursuant to article 2120 of the Italian Civil Code, are based on the length of service of employees and on the remuneration received by the employees over a specific period of service. Specifically, the liability representing the benefit due to employees based on defined benefit plans is recognized in the financial statements at its actuarial value. Recognizing defined benefit plans in the financial statements requires estimating, using actuarial techniques, the benefits accrued by employees in exchange for their service provided in the current year and in previous years and discounting those benefits to determine the present value of the entity’s obligations. The present value of obligations is determined by an independent actuary using the Projected Unit Credit Method. That method considers each period of service provided by workers at the company as a unit of additional rights: thus, the actuarial liability must be quantified based only on the seniority accrued at the valuation date. Therefore, the total liability is usually reproportioned based on the ratio of the years of service accrued at the reference date of the valuations to the overall seniority achieved at the time the benefit is expected to be liquidated. Moreover, that method considers future salary increases, for any reason (inflation, promotion, renewal of contracts, etc.), up to the time the employment is terminated. The cost for defined benefit plans accrued during the year and recognized in the income statement as part of personnel costs equals the sum of the average present value of the rights accrued by employees present for their service provided during the year and the annual interest accrued on the present value of the entity’s obligations at the beginning of
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55 the year, calculated using the discount rate of the future outlays adopted to estimate the liability at the end of the previous year. The annual discount rate adopted for these calculations is assumed to be equal to the market rate at the period-end for zero coupon bonds with maturities equal to the average remaining life of the liability. The amount of actuarial gains and losses deriving from changes in the estimates made is posted to the income statement. Share capital and treasury shares If treasury shares are purchased, the portion of the price paid, inclusive of any directly attributable accessory costs, referring to the nominal value of the shares and the portion exceeding the amount of equity is deducted from the share capital. When treasury shares are resold or re-issued, the portion of the price collected referring to the nominal value of the shares and the portion exceeding the amount of equity relating to the proceeds, net of any directly attributable accessory costs and related tax effect, is posted as share capital. Equity-settled transactions. Some employees of the Group (including executives) receive a portion of their remuneration as share-based payments. Therefore, employees provide services in exchange for shares. The cost of equity-settled transactions is determined by the fair value at the date of assignment. That cost, together with the corresponding increase in equity, is recognized under personnel costs for the period in which terms and conditions related to the achievement of targets and/or the performance of the services are fulfilled. Cumulative expenses, recognized in relation to these transactions at the reporting date of each financial year, until the maturity term, are proportionate to the maturity date and the best estimate of the number of equity instruments that will be effectively accrued. Costs or revenues in the statement of profit/(loss) for the year represent the change in the cumulated cost recognized at the beginning and the end of the year. Service or performance conditions are not taken into account when the fair value of the plan is defined at the assignment date. The probability that these conditions will be satisfied is however taken into account while defining the best estimate of the number of equity instruments that will be held to maturity. Market conditions are reflected in the fair value at the assignment date. Any other term and condition related to the plan and that would not entail a performance obligation, shall not be considered as a vesting condition. Non-vesting conditions are reflected in the fair value of the plan and entail the prompt accounting of the expense related to the plan, unless there are also service or performance conditions. No expense will be recognized in relation to rights that have not been accrued by reason of the non-satisfaction of performance and/or service obligations. When the rights include a market condition, or a non-vesting condition, these rights are considered as if they have been accrued regardless of whether market conditions or other non-vesting conditions have been fulfilled, without prejudice to the fact that all other performance and/or service obligations must be satisfied. If the conditions of the plan are modified, the minimum expense to be recognized is measured at fair value at the assignment date, in the absence of a change to the plan itself, provided that the original conditions of the plan are fulfilled. Moreover, an expense for each change is recognized if it entails the increase in total fair value of the payment plan, or if this change is in any case favorable for employees. This expense is measured with reference to
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56 the change date. When a plan is cancelled by the entity or the counterpart, any remaining fair value element in the plan is immediately charged to income statement. Provisions for future risks and charges These are allocations deriving from current (legal or implicit) obligations relating to a past event, the fulfillment of which is likely to require the use of resources whose amount can be reliably estimated. Where the resources are expected to be used beyond the financial year, the obligation is recognized at the present value, determined by discounting the expected future cash flows at a rate that also takes account of the cost of money and the risk of the liability. Allocated provisions are reviewed at each reporting date and adjusted, if necessary, to reflect the best current estimate. Any changes in estimates are reflected in the income statement in the period in which they occur. Risks that may only possibly give rise to a liability are mentioned in the notes, without allocating any amounts. Revenues from contracts with clients Revenues deriving from contracts with clients are recognized based on the following steps: I. identifying the contract with the client II. identifying the performance obligations to be transferred to the client in exchange for the consideration; III. identifying the consideration for the contract; IV. allocating the consideration to the single performance obligations; V. recognizing the revenue when the specific performance obligation has been met. Revenues are recognized in an amount that reflects the consideration that the Company deems it is entitled to on fulfilling the performance obligation, by transferring the goods or services when the client acquires control thereof. Grants Grants from the government or other entities, recognized both as direct grants or as tax benefits, are recorded under other income in other liabilities at the moment that it is reasonably certain that they will be obtained, or it is certain that all the obligations to obtain them have been fulfilled. Grants are transferred to the income statement as income systematically, on an accruals basis, i.e. at the time the costs arise for which the grants were provided (capital grants). Operating grants are posted to the income statement at the time that all the conditions of recognition are fulfilled, or when it is certain that they will be recognized as an offsetting entry to the costs for which the grants were disbursed.
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57 Interest income Interest income is recorded in the income statement on an accruals basis, according to the effective rate of return method. This refers mainly to bank current accounts. Dividends Dividends received are recognized in the income statement when the right to receive them arises, which normally occurs at the time of the shareholders’ meeting to distribute dividends. Cost recognition All costs are recognized on an accruals basis, and are posted net of returns, discounts, rebates and premiums, as well as recoverable taxes directly associated with the purchase of products or the receipt of the services provided. Transactions in foreign currency Revenues and income, costs and charges relating to operations in foreign currency are determined at the exchange rate on the date on which the related transaction was executed. Interest expense Interest expense is recognized applying the accruals principle, based on the amount financed and the effective interest rate applicable. Income taxes Taxes for the year represent the sum of current taxes and deferred tax assets and liabilities. Current taxes are based on the taxable income for the year. Taxable income differs from the profit (loss) reported in the income statement, as it excludes positive and negative components that will be taxable or deductible in other years and also excludes items which will never be taxable or deductible. Liabilities for current taxes are calculated using the tax rates in force or effectively in force at the reporting date or, where known, those that will be in force at the time the asset it sold or the liability is extinguished. Deferred tax assets and liabilities are allocated according to the liability method, i.e., they are calculated on all the temporary differences arising between the value determined for tax purposes of the assets and liabilities and the related book value in the Company’s financial statements. Deferred tax liabilities are not recognized on assets that do not influence the taxable income. The recoverability of deferred tax assets is verified at each year end, and any portion which is no longer likely to be recovered is posted to the income statement. For the purpose of recognizing the deferred tax assets, an estimate of the probability that there will be future taxable income sufficient to recover these assets is carried out.
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58 Estimation of fair value The fair value of financial instruments listed on an active market is determined based on the market listings at the reporting date. The reference market price for financial assets held is the current sale price (purchase price for financial liabilities). The fair value of financial instruments that are not traded on an active market is determined using valuation techniques and the assumptions underlying the market conditions existing at the reporting date. For medium and long-term liabilities, comparison is made with the prices of similar listed financial instruments, while for other categories of financial instruments, the cash flows are discounted. The fair value of IRS is determined by discounting the estimated cash flows deriving from the IRS at the reporting date. For receivables, it is assumed that the par value, net of any adjustments made to take account of their recoverability, approximates the fair value. The fair value of financial liabilities for the purpose of disclosure is determined by discounting the cash flows from the contract at an interest rate that approximates the market rate at which the entity borrows. Fair value measurement The classification of financial instruments measured at fair value is shown below, based on the fair value hierarchy set out in IFRS 13, which reflects the significance of the inputs used to determine the fair value. The following levels of fair value are set out: Level 1 – quoted prices (unadjusted) recognized on active markets for the assets or liabilities measured; Level 2 – inputs other than quoted prices as per the previous point, that are observable on the market, either directly (as in the case of prices) or indirectly (as in deriving from prices); Level 3 – inputs that are not based on observable market data. Impairment of assets The Group’s tangible and intangible assets are subject to impairment testing on an annual basis, if they have an indefinite useful life, or more often in the event of events that give rise to the belief that the recognition value in the financial statements cannot be recovered. Write-downs are determined by comparing the recognition value with the related recoverable value, represented by the higher of the fair value, net of costs to sell, and the value in use, determined by discounting the expected cash flows deriving from the use of the asset, net of costs to sell. The expected cash flows are quantified in light of the information available at the time of the estimation, based on subjective judgments of the performance of future variables (prices, costs, growth rates in demand and production aspects) and are discounted using a rate that takes account of the risk inherent in the asset in question. Goodwill and other intangible assets with indefinite useful life are not amortized. The recoverability of their recognition value is tested at least annually, and, in any event, when events arise that may indicate impairment. With regard to goodwill, the test is conducted at the level of the smallest cash generating unit (“CGU”) based on which the company management directly or indirectly assesses the return on the investment that includes the goodwill. When the recognition value of the cash generating unit, including the goodwill attributed to it, exceeds the recoverable value, the difference is written down, granting priority to goodwill to the limit of its amount. Any excess of the write-down in relation to goodwill is posted pro-rata to the book value of the assets comprising the cash generating unit.
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59 Climate change With regard to climate change, it must be specified that Doxee does not fall within the scope of Directive 2003/87/EC (most recently amended by Directive EU 2018/410), which introduced and regulates the European Union Emissions Trading System (EU ETS). The ETS is the main instrument adopted by the European Union to achieve the targets for reducing CO2 in the main industrial sectors and the aviation segment. Although the IAS/IFRS standards do not explicitly refer to issues regarding the climate, those impacts are considered by the Company in applying the accounting standards where they are significant, assessing their effects, both in applying single accounting standards, and on the going concern assumption. In that context, it is noted that for the Doxee Group no significant risks were recognized by the application of the individual standards, and no doubts or uncertainties arose regarding events or conditions that could place in doubt the company’s ability to operate as a going concern. It is also important to note that the transition to emissions reduction of economies in response to climate change will create challenges and opportunities for global growth. 7. ENDORSED ACCOUNTING STANDARDS AND INTERPRETATIONS IN FORCE STARTING ON JANUARY 1,2024 The following are the main new international accounting standards and/or those which were amended during 2024 and came into effect during the current year or subsequently, and the interpretations which had already been issued but were not yet in force as of the date of drafting of the Group’s consolidated financial statements. The information provided below is updated to December 31, 2024, although this summary is not exhaustive and does not include all the IASB’s standard-setting activities. The Group intends to adopt these standards and interpretations, if applicable, when they come into force. Standards and amendments in force from January 1, 2024 IFRS and IAS 7 On May 25, 2023, the IASB issued its Supplier Finance Arrangements, amending IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures (the Amendments). These Amendments were issued further to a query from the IFRIC concerning the requirements for the statement of liabilities and the relative cash flows arising from supplier finance arrangements (or “reverse factoring”) and the relative supporting information. In December 2020 the IFRIC had published an Agenda decision - Supply Chain Financing Arrangements - Reverse Factoring, which replied to this query on the basis of the requirements of the IFRS in force at that time. During this process, the various stakeholders pointed out limitations due to the requirements then in force in responding to the important need to inform users and provide an understanding of the effects of reverse factoring on an entity’s financial statements, and enable comparison between entities. In response to this feedback, the IASB launched a project for limited amendment of the standards, which resulted in the Amendments. The Amendments require entities to provide specific qualitative and quantitative information about supplier finance arrangements. The Amendments also provide guidance on the characteristics of supplier finance arrangements. In June 2020 the IFRS Interpretations Committee published an agenda decision – Sale and Leaseback with Variable Payments. The matter was submitted to the IASB for the definition of a number of aspects. The IASB approved the final amendments in September 2022. The Amendments require the vendor-leaser to set “lease payments” or “revised lease payments”
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60 which do not include any profit or loss relating to the right of use retained by the vendor-leaser itself. In January 2020 the IASB published its amendments to IAS 1 – Classification of Liabilities as Current or Non-Current, which were further amended by the Amendments - Non-Current Liabilities with Covenants, published in October 2022. The Amendments require an entity’s right to defer settlement of a liability for at least twelve months after the end of the financial year to be substantial and present at the end of the reporting period. A liability’s classification is unaffected by the degree of probability that the entity will exercise its right to defer its settlement for at least twelve months after the financial year. Further to the COVID-19 pandemic, the Board postponed the implementation of the Amendments for one year to financial years starting on January 1, 2024 or later. IAS 1 Further to publication of the Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current, the IASB amended IAS 1 further in October 2022. If an entity’s right to defer is subject to its compliance with specific conditions, these conditions affect the existence of the right at the end of the year if the entity is obliged to comply with the condition at the closing date or prior to that date, but not if the entity is obliged to comply with the condition after the end of the year. The Amendments also clarify the meaning of “settlement” for the purposes of classification of a liability as current or non-current. New IFRS Accounting Standards and Amendments published in 2024 The following is the list of the new IFRS Accounting Standards and the amendments issued in 2024 to the IFRS Accounting Standards in force. The first part provides a description of each item, in order of the date when each IFRS and amendment will come into force. - Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7): mandatory adoption for financial years starting January 1, 2026 or later; - Contracts Referencing Nature-Dependent electricity (Amendments to IFRS 9 and IFRS 7): mandatory adoption for financial years starting January 1, 2026 or later; - IFRS 18 Presentation and Disclosure in Financial Statements: mandatory adoption for financial years starting January 1, 2027 or later; - IFRS 19 Subsidiaries without Public Accountability: Disclosure: mandatory adoption for financial years starting January 1, 2027 or later; Projects for new IFRS Accounting Standards or significant amendments The following is a list and short description of the standard-setting projects ongoing during 2024, which may conclude with the publication of new IFRS Accounting Standards or significant amendments to existing ones. The timings for the completion of these projects are uncertain. Business combinations - Disclosure, Goodwill and Impairment In March 2024 the IASB published an Exposure Draft containing “Proposed Amendments to IFRS 3 Business Combinations and IAS 36 Impairment of Assets”. During the post-implementation review of IFRS 3, stakeholders raised concerns regarding the difficulty of obtaining sufficient, timely information regarding acquisitions and post-acquisition performance. Concerns were also raised regarding the efficacy and complexity of the impairment test for assets to which goodwill had been allocated and the delay in the reporting of losses due to reduction in value of goodwill arising from the masking of its loss of value.
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61 The Exposure Draft remained open for comments until July 15, 2024 and was discussed by the IASB in January 2025. Dynamic Risk Management The IASB has developed and improved core areas central to the accounting model (core model) to enable investors to appreciate the effect of a company’s dynamic risk management. The model’s development reflects information gathered at meetings with banks that use dynamic risk management to reformulate interest rate risk. It is expected that an Exposure Draft will be published in the second quarter of 2025. Equity method On September 19, 2024 the International Accounting Standards Board published its “Equity Method” Exposure Draft – IAS 28 Investments in Associates and Joint Ventures (revised 202x). The Exposure Draft proposes: • Amendments to IAS 28 to deal with issues relating to the procedures for application of the equity method; and • Improvements to the disclosure obligations contained in IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements. The IASB also proposes the reorganization of the requirements of IAS 28 for a more logical, coherent approach, as part of its work to improve the clarity of the IFRS Accounting Standards. The Exposure Draft remained open for comments until January 20, 2025. Financial instruments with characteristics of equity The IASB published its Exposure Draft “Financial Instruments with Characteristics of Equity” in November 2023. The IASB proposed amendments to deal with the challenges businesses currently face in the presentation in financial statements of financial instruments with characteristics of equity. The proposals contained in the Exposure Draft will amend IAS 32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures and IAS 1 Presentation of Financial Statements. These proposals include: • clarification of the underlying classification criteria of IAS 32 to help companies to distinguish between financial liabilities and equity; • additional information to further explain the complexities of financial instruments with characteristics of both financial liabilities and equity; and • requirement to present amounts, including in profit and overall income statement, relating to ordinary shareholders separately from the amounts relating to other holders of capital instruments. The period granted for comments on the Exposure Draft has now ended and the IASB is considering the replies it has received. It is expected that the final amendments will be published in 2026. Management Commentary The Management Commentary is a narrative report which accompanies financial statements, required by the supervisory authorities in many jurisdictions. It is also known as management discussion and analysis (‘MD&A’), strategic report, annual report, etc. In May 2021, the IASB published its Exposure Draft “Management Commentary”, containing the Board’s proposals for a new overall framework for drafting of the management commentary. The proposed Framework establishes the disclosure objectives concerning information regarding the company’s business model, strategies, resources, relationships and risks, the external environment and its financial performance and position. The proposed Framework will replace IFRS Practice Statement 1 “Management Commentary”.
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62 The IASB has decided to finalize the project with some improvements to the proposals in the Exposure Draft. It is expected that the updated practice statement will be published in the second quarter of 2025. Second Comprehensive Review of the IFRS for SMEs Accounting Standard In September 2022 the IASB published the Exposure Draft - Third Edition of the IFRS for SMEs, as part of its second complete review of the Standard. The Exposure Draft proposes amendments to the IFRS for SMEs Accounting Standard to reflect the improvements made to the complete IFRS Accounting Standards (as part of the second complete review) without detriment to this Standard’s simplicity. The IASB continued its discussion of the feedback on the Exposure Draft during 2024. The revisions to the IFRS for SMEs are expected to be finalized in February 2025. Ongoing maintenance projects regarding the IFRS/IAS International Accounting Standards Climate-Related and Other Uncertainties in the Financial Statements In July 2024, the IASB published the Exposure Draft “Climate-Related and Other Uncertainties in the Financial Statements”. The Exposure Draft provides eight examples illustrating the procedures by which an entity may apply the requirements of the IFRS Accounting Standards for the presentation of climate-related and other uncertainties in its financial statements. The period granted for comments on the Exposure Draft ended on November 28, 2024. Provisions - Targeted Improvements On November 12, 2024 the IASB published Exposure Draft “Provisions - Targeted Improvements”. The Exposure Draft proposes three amendments to the requirements of IAS 37: • when an entity recognizes provisions for obligations which it could avoid through its future actions; • if the discount rates used for provisions reflect the risk of default; • which costs to include when calculating a provision. The amendments are expected to replace IFRIC 21 Levies with new application requirements demonstrating how the revised recognition requirements should be applied to levies. The Exposure Draft is open for comments until March 12, 2025. Using a hyperinflationary presentation currency (IAS 21) The IASB has added this Project to its maintenance plan to respond to an accounting problem - the use of a hyperinflationary presentation currency by a entity the functional currency of which is not hyperinflationary - submitted to the IFRS Interpretations Committee. On July 25, 2024 the IASB published its Exposure Draft “Translation to a Hyperinflationary Presentation Currency”. The Exposure Draft proposes an amendment to IAS 21 requiring the entity to translate all amounts (assets, liability, equity, revenues and costs, including comparative amounts) into a hyperinflationary presentation currency at the closing rate on the date of the most recent statement of financial position. Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures In July 2024, the IASB published the Exposure Draft “Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures”. The Exposure Draft:
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63 • Proposes a reduction in disclosure requirements to include only disclosure requirements which reflect its principles for reducing disclosure requirements. The Exposure Draft refers to disclosure requirements issued between February 28, 2021 and May 1, 2024 not discussed in the first version of IFRS 19, published in May 2024. • Asks stakeholders whether the IASB should reduce the disclosure requirements of the future IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8. TANGIBLE ASSETS Tangible assets of Euro 150,797 (Euro 717,738n in the previous year), of which other leased tangible assets of Euro 0 (Euro 152,721 in the previous year), showed the following changes: Non-current assets Other owned tangible assets Other leased tangible assets Total Other tangible assets (in Euro) Amount at 12/31/2023 206,133 152,721 358,854 Purchases 49,999 0 49,999 Sales -152,721 -152,721 Depreciation -105,335 0 -105,335 Exchange rate differences 0 Amount at 12/31/2024 150,797 0 150,797 Other tangible assets are mainly comprised of hardware, furniture and office machines, and maintenance of third-party assets. Other leased tangible assets are composed of hardware. 9. DEVELOPMENT COSTS Development costs of Euro 9,912,738 (Euro 12,469,981 in the previous year) refer to projects developed by the Company. The process of continuous investment in new technologies linked, inter alia, to the adoption of the new release of the Doxee Platform®, continued throughout 2024. 2024 also saw the continuation of the investments in areas of innovation linked to artificial intelligence and mass data analysis. The table below illustrates the breakdown and changes: Non-current assets Development costs (in Euro) Amount at 12/31/2023 12,469,981 Increases 0 Sales 0 Reclassifications 1,408,156
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64 Depreciation and Amortization -3,965,399 Exchange rate differences 0 Amount at 12/31/2024 9,912,738 10. WORK IN PROGRESS AND PAYMENTS ON ACCOUNT Work in progress and payments on account, amounting to Euro 8,358,446 (Euro 6,144,646 in the previous year) refer to costs incurred for projects not yet completed at the end of this year. The company will allocate the related amortization during the year in which those projects will be completed and enter into operation. The total increase in the item during the year, equal to Euro 3,621,957, comprises Euro 1,789,644 attributable to the deferral of the cost, through recognition in the income statement, of the employees engaged by the Group companies in developing projects, and the remainder, equal to Euro 1,832,313, relating to costs for consulting services obtained outside the Group. The company periodically estimates the expected return on the investments made in projects, both those completed and those in progress. The table below illustrates the breakdown and changes: Non-current assets Work in progress and payments on account Net Amount at 12/31/2023 6,144,646 Increases 3,621,957 Decreases 0 Reclassifications -1,408,156 Depreciation and Amortization 0 Write-downs 0 Exchange rate differences from translation 0 Net Amount at 12/31/2024 8,358,446 Details on the main projects in progress and the related deferred costs are provided below: • CDMH Customer Data Management Hub project - The project aims to develop a Customer Data Management Hub (CDMH) capable of archiving the data of clients and end users in a structured manner, to create a “customer-centric” profile, constantly updated with new information. The CDMH project forms part of the fundamental enabling technology of Artificial Intelligence, applicable to technologies for AI open platforms, and relates to the design of innovative software technologies and database management. Entered with a book value of Euro 2,121,673 • IX Studio - The ix Studio project aims to add to the Doxee offering an innovative cloud solution dedicated to creative agencies and content creators, to develop and distribute personalized, interactive video content in full self-service mode; the project is entered in the financial statements with a book value of Euro 680,012.
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65 “TETI Project - Design and creation of an innovative cloud-based digital storage system for documents based on homomorphic encryption and blockchain technology” (book value Euro 2,863,882). This regards the sector of secure digital cloud-based storage of documents, and aims to design a prototype of a next generation IT storage system; 11. OTHER INTANGIBLE ASSETS The other intangible assets heading, worth Euro 4,300,262 (Euro 4,833,485 in the previous financial year), mainly refers to the inclusion of assets from the financial statements of Infinica Gmbh for a total amount of Euro 5,300,000 and specifically a) Customer portfolio, amount Euro 2,700,000, amortization period 30 years and b) Technology, amount Euro 2,600,000, amortization period 7 years, further to the completion of the Purchase Price Allocation process carried out during the year. The remainder refers to patents, user licenses and software. At December 31, 2024 these assets were amortized for an amount of Euro 563,124. The table below illustrates the breakdown and changes: Non-current assets Other intangible assets (in Euro) Amount at 12/31/2023 4,833,485 Purchases 29,901 Sales Reclassifications Amortization -563,124 Exchange rate differences 0 Amount at 12/31/2024 4,300,262 12. RIGHT-OF-USE-ASSETS Right-of-use assets, equal to Euro 1,504,762 (Euro 1,115,267 in the previous year) refer to the application of IFRS 16, and regard the operating leases of vehicles and lease payments for properties. The table below illustrates the breakdown and changes: Non-current assets Immovable assets Movable assets Total Right-of-use (in Euro) Amount at 12/31/2023 570,204 545,063 1,115,267 Increases 976,350 4,526 980,876 Depreciation and Amortization -259,832 -331,549 -591,381 Amount at 12/31/2024 1,286,722 218,040 1,504,762
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66 The recognition of right-of-use assets entailed the recognition of a lease liability in the balance sheet, as an offsetting entry to assets, at the transition date for the same amount as the assets. The lease liability was calculated by discounting the future lease rentals, using the rate that is assumed could be used by independent third parties in granting a loan. In terms of the income statement, the application IFRS 16 resulted in the reversal of the costs for leasehold assets and the recognition of amortization (of the right-of-use assets), as well as interest expense. The increase of Euro 976,350, relating to the Immovable Assets category, refers to the renewal of the lease on the Parent Company’s headquarters building. 13. GOODWILL The goodwill, equal to Euro 7,768,504, was generated by the acquisition of the Austrian company Doxee AT GmbH and the subsequent allocation of a number of assets as part of a Purchase Price Allocation process. With reference to the value of the goodwill, it should be specified that this value has been the subject of an Impairment Test, which estimated the recoverable value on the basis of the multiannual plan drawn up by the Doxee Group, also in order to establish that the book value of the intangible and tangible assets and of the assets with undefined usable lifetime, including the goodwill, had been entered in the financial statements at December 31, 2024 at a value below the recoverable value. The Impairment Test therefore investigated the recoverability of the assets held by the Doxee Group and any related lasting reductions in value. The Test was conducted using the Discounted Cash Flow (DCF) method, which estimates the recoverable value by discounting the operating cash flows and the closing value, calculated from the 2025 - 2029 Business Plan underlying the impairment test approved by the BoD. For performance of the impairment test on the goodwill and the consolidated net invested capital at December 31, 2024 the directors considered the Doxee Group to constitute a single CGU. Specifically, the projected cash flows were based on the following key variables: · evolution of the macroeconomic variables; · estimated future sales volumes per business region / product family; · trends in prices and margins; · cost of products sold (including cost of materials) per product family; · production costs, operating expenses and investment plan. The expected growth in sales, and the forecast evolution in margins and operating costs, is based on the management’s forecasts derived from an analysis of the market context and development programs already running or to be implemented during the time-horizon of the plan. The value of investments and the working capital were estimated on the basis of various factors, including expected future levels of growth, the product development plan and programs already running. The resulting cash flows, calculated net of the tax burden, were then discounted at a rate representative of the WACC (Weighted Average Cost of Capital) of the cash-generating unit assessed, also calculated net of the tax burden.
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67 The findings of this impairment test showed that the recoverable value of the net invested capital, including the goodwill held by Doxee S.p.A., was higher than the corresponding book value at December 31, 2024, confirming that the goodwill has been booked correctly. A sensitivity analysis with regard to the growth rate, terminal ebitda margin and cash flows was then performed on the findings, and no need for write-downs emerged.
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68 The table below illustrates the breakdown and changes: Non-current assets Goodwill (in Euro) Amount at 12/31/2023 7,768,504 Purchases 0 Sales 0 Reclassifications 0 PPA 0 Amount at 12/31/2024 7,768,504 14. NON-CURRENT FINANCIAL ASSETS Non-current financial assets amounting to Euro 31,386 (Euro 32,784 in the previous year) consisted of receivables from others (security deposits) of Euro 31,386 (Euro 32,784 in the previous year). Investments in other companies present in the previous year referred to the cost of the 10% investment in the capital of DNA LAB S.r.l., based in Catanzaro (CZ), sold during 2024 Non-current financial assets Value at 12/31/2024 Value at 12/31/2023 Change List of investments (in Euro) DNA:LAB 0 1,000 -1,000 Total 0 1,000 -1,000 Non-current financial assets Other companies Total Receivables (in Euro) Amount at 12/31/2023 32,784 32,784 Increases 0 0 Decreases -1,398 -1,398 Write-downs 0 0 Amount at 12/31/2024 31,386 31,386
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69 15. DEFERRED TAX ASSETS Other non-current deferred tax assets amount to Euro 596,631 (Euro 1,293,927 in the previous year). The reduction is due mainly to invoices not yet issued recognized during the previous year but issued during the current year. The remainder relates to: - entries generated by the IFRS transition for the reversal of non-capitalized intangible assets and the adjustment to employee severance indemnity in accordance with IAS 19; - negative income components to be deducted in years other than the year of statutory accounting, such as drawing on the taxed receivables write-down fund and non-realized exchange rate losses, entirely released due to changes in fiscal legislation. Advance tax provisions were made for the fiscal loss which Babelee S.r.l. contributed to the CNM (Consolidato Nazionale Mondiale) amounting to Euro 33,964. The change for the year is set out below: Deferred tax assets Total (in Euro) Amount at 12/31/2023 1,293,928 Change -697,297 Amount at 12/31/2024 596,631 16. OTHER NON-CURRENT ASSETS Other non-current assets amounted to Euro 53,904 (Euro 43,865 in the previous year). They refer mainly to security deposits. The breakdown of and changes in the single items are shown below: Non-current assets Value at 12/31/2024 Value at 12/31/2023 Changes Other assets (in Euro) Deposits 53,904 43,865 10,039 Accrued income 0 0 0 Prepaid expenses 0 0 0 Derivative financial instruments – assets 0 0 0 Total 53,904 43,865 10,039 17. TRADE RECEIVABLES Trade receivables included in current assets amounted to Euro 7,542,127 (Euro 8,001,751 in the previous year). The table below illustrates the changes in receivables at 12/31/2024, net of provision for bad and doubtful debts compared to 12/31/2023:
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70 Current assets Trade receivables (in Euro) Amount at 12/31/2023 8,001,751 Change -459,624 Amount at 12/31/2024 7,542,127 Trade receivables due from customers expire within the next financial year, and the decrease on the previous year is due to the management’s implementation of systems to control and recover overdue payments. The breakdown of changes in the Provision for bad and doubtful debts is shown below: Trade receivables Total Provision for bad and doubtful debts (in Euro) Amount at 12/31/2023 1,563,310 Provisions -585,053 Amount at 12/31/2024 978,257 The provision for bad and doubtful debts was aligned with the best estimate of credit risk and the expected losses at the reporting date. 18. OTHER RECEIVABLES “Other receivables” amounted to Euro 2,378,816 (Euro 3,884,710 in the previous year). The breakdown of and changes in the single items are shown below: Tax credits mainly refer to IRES and IRAP credits of the Parent, while accrued income and prepaid expenses mainly include the portion of deferred revenues relating to the R&D tax credit and contributions accrued whose related costs have not yet been posted to the income statement. Current assets Value at 12/31/2024 Value at 12/31/2023 Changes Other receivables (in Euro) Deposits received 21,613 0 21,613 Accrued income and prepaid expenses 596,273 644,337 -48,064 Tax receivables 1,673,211 2,706,964 -1,033,753 Sundry receivables 87,718 533,409 -445,691 Total 2,378,816 3,884,710 -1,505,894
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71 19. CASH AND CASH EQUIVALENTS Cash and cash equivalents at December 31, 2024 amounted to Euro 1,057,142 (Euro 776,203 in the previous year) and are composed of cash at banks and on hand. The breakdown of and changes in the single items are shown below: Cash and cash equivalents Value at 12/31/2024 Value at 12/31/2023 Changes (Euro) Deposit accounts 1,054,764 773,828 280,936 Cash and cash equivalents on hand 2,377 2,375 2 Total 1,057,142 776,203 280,939 20. EQUITY The tables below set out the reconciliations between the Equity of the Parent and Consolidated Equity at December 31, 2024. The table below shows the changes in Equity in 2024: Reconciliation between the Equity of the Parent and the Consolidated Equity (in Euro) Share capital Own reserves Profit (loss) for the year Total Equity of Doxee S.p.a. 2,544,039 11,692,533 (3,457,724) 10,778,848 Profit (loss) for the year of consolidated companies (prior to consolidation adjustments) (544,396) (544,396) Capital and reserves of consolidated companies (prior to consolidation adjustments) 1,467,832 1,467,832 Consolidation adjustments: - - carrying amount of investments (15,935,933) (15,935,933) - put and call options on the Infinica Austria investment (1,576,126) (94,719) (1,670,845) - put and call options on the Doxee USA investment (1,105,009) - (1,105,009) - put and call options on the Doxee CEE investment (1,745,947) (41,762) (1,787,709) - intragroup amortization/depreciation 5,420,122 798,788 6,218,911 - recognition of goodwill for business combinations 7,768,504 7,768,504 - recognition of assets with a finite useful life for business combinations 4,617,086 (355,300) 4,261,786 - recognition of taxes on assets with a finite useful life for business combinations (980,211) 23,680 (956,531) - equity and profit/(loss) attributable to minority interests - - - Consolidated Equity of the Group 2,544,039 9,622,851 (3,671,433) 8,495,457 With regard to changes in equity and the breakdown of individual reserves, also see the statement of changes in equity.
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72 The cash flow hedge reserve refers to the valuation of the following derivatives net of deferred tax liabilities: - hedging derivative entered into by the Company in 2021 to hedge interest rate risk on the loan disbursed by Crédit Agricole of Euro 1,000,000, whose mark-to-market value at December 31, 2024 came to Euro 521.45; - hedging derivative entered into by the Company on October 28, 2022 to hedge interest rate risk on the loan disbursed by Unicredit of Euro 3,000,000, whose mark-to-market value at December 31, 2024 came to Euro -78,436.00; - hedging derivative entered into by the Company on October 28, 2022 to hedge interest rate risk on the loan disbursed by BPER Banca of Euro 3,000,000, whose mark-to-market value at December 31, 2024 came to Euro -39,028.32. - hedging derivative entered into by the Company on July 28, 2022 to hedge interest rate risk on the loan taken out with Banco BPM S.p.A., with mark-to-market value at December 31, 2024 of Euro 1,433.95 The reduction in Equity is due to the negative operating result. The composition of the Doxee S.p.A. share capital (fully subscribed and paid in), following the filing with the Register of Companies of Modena of the certification pursuant to art. 2444, paragraph 1 of the Italian Civil Code, is shown below: Subscribed and paid-up current share capital Subscribed and paid-up previous share capital Euro no. of shares Unit nominal amount Euro no. of shares Unit nominal amount 2,544,039 11,489,575 with no par value 1,913,570.19 8,623,807 with no par value Of which Ordinary Shares (regular dividend entitlement: January 1, 2023) current coupon no.: 1 The Company announces that, based on the latest records in its possession, its shareholding structure is composed as follows: Name No. of shares % P&S S.r.l. * 8,789,525 76.50% Ipoc 5 S.r.l. 597,458 5.20% Free float 2,102,592 18.30% Total 11,489,575 100.00% *Company held by Sergio Muratori Casali and Paolo Cavicchioli, 50% each Note that the subscribed and paid-up Share Capital at the date of approval of these financial statements amounts to Euro 2,544,039 and is composed of 11,489,575 ordinary shares with no par value. There were no shares issued that were not fully paid-up.
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73 Treasury Shares Treasury shares bought back are recognized at cost and applied as a decrease in equity. The purchase, sale or elimination of treasury shares does not give rise to any gains or losses in the income statement. The difference between the purchase value and the consideration, in the event of reissue, is recognized in the share premium reserve. Note that all the purchases of treasury shares in the last few financial years were carried out through Integrae SIM S.p.A., as the intermediary assigned to carry out operations, in compliance with the applicable provisions of law and regulations and according to the methods, terms and conditions contained in the authorization to buy and sell treasury shares granted by the Ordinary Shareholders' Meeting of Doxee S.p.A. 21. CURRENT AND NON-CURRENT LOANS AND FINANCING Non-current loans and financing amounted to Euro 10,751,117 (Euro 13,785,539 in the previous year). Based on the analyses of expected future cash flows and the stress tests conducted by the Company, the financial plan regarding future outlays necessary to repay debt is considered sustainable. A specific contribution to the generation of cash flows is expected to come from an increase in profitability, resulting from the streamlining of internal processes, and the decreased need to make investments in the software platform. The characteristics of the loan repayment plans also make it possible to stabilize the outlays and spread them out over time. The table below shows the change in non-current financial liabilities: Non-current liabilities Loans and financing (in Euro) Amount at 12/31/2023 13,785,539 Change -3,034,422 Amount at 12/31/2024 10,751,117 The tables below shows the breakdown in non-current financial liabilities: Detailed Non-current loans and financing 12/31/2023 12/31/2024 Changes (in Euro) Sanfelice Unsecured Loan No. 160943 129,137 0 -129,137 Mediocredito Centrale Loan 213,614 160,338 -53,276 UNICREDIT Loan F1000008768621 567,101 355,312 -211,789 UNICREDIT Loan F1000002199322 2,896,564 2,366,058 -530,506 Cariparma Loan 0138867400000 63,004 0 -63,004 Cariparma Loan 0 240705700000 1,199,177 398,837 -800,340 MPS Loan 0994139280 590,957 84,860 -506,097
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74 Simest Loan - Feasibility Study Tender 15,520 0 -15,520 Ecommerce Tender Loan 99,000 33,000 -66,000 ITALIAN MINISTRY FOR BUSINESS AND MADE IN ITALY SUBSIDIZED FINANCING - CDMH TENDER 0 318,719 318,719 Banco BPM Loan 05683270 278,308 168,869 -109,439 BPER Loan 421/005142373 2,304,748 1,842,419 -462,329 SIMEST (Option) doxee CEE 1,661,262 1,716,945 55,683 Infinica (option) 1,635,326 1,730,045 94,719 MPS Loan 0994147758 23,871 20,159 -3,712 ISP Loan No. 01C1046977128 5,288 0 -5,288 SIMEST loan DOXEE CEE 1,921,650 1,555,556 -366,094 Other financial payables 181,011 -181,011 Total long-term financial payables 13,785,539 10,751,117 -3,034,422 Current loans and financing amounted to Euro 7,311,754 (Euro 6,519,372 in the previous year). The table below shows the change in current financial liabilities: Current liabilities Loans and financing (in Euro) Amount at 12/31/2023 6,519,372 Change 792,382 Amount at 12/31/2024 7,311,754 The table below shows the breakdown in current financial liabilities: Current financial liabilities Value at 12/31/2023 Value at 12/31/2024 Changes BPER Unsecured Loan No. 3858169 70,456 - (70,456) Sanfelice Unsecured Loan No. 160943 252,001 128,605 (123,396) Mediocredito Centrale Loan 53,190 53,275 85 BPM Spa Unsecured Loan No. 3542648 211,340 - (211,340) UNICREDIT Loan F1000008768621 - 204,905 204,905 Cariparma Loan no. 138867400000 256,967 62,902 (194,065) MPS Loan no. 994139280 500,848 505,382 4,534 Simest Loan - Feasibility Study Tender 15,525 15,520 (5) Ecommerce Tender Loan 66,000 66,000 - BPM Loan no. 5683270 102,642 106,647 4,005 BPER Loan no. 421/005142373 596,003 589,812 (6,191) UNICREDIT Loan F1000002199322 131,050 495,417 364,367 Cariparma Loan no. 0270705700000 798,264 792,905 (5,359) BNL Loan 1,500,000 748,875 (751,125) SIMEST option 1,100,869 - (1,100,869) P&S loan - 246,221 246,221
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75 Use of current account credit facilities 455,155 2,826,792 2,371,637 MPS Loan no. 0994147758 3,686 3,715 29 ISP Loan no. 01C1046977128 32,072 5,281 (26,791) ISP Loan No. 01C1048320467 16,211 - (16,211) Simest Loan 78,350 459,594 381,244 Other short-term financial payables 278,741 - Intercompany balancing difference - (95) (95) Total short-term financial payables 6,519,370 7,311,754 792,384 The table below shows the breakdown in payables and information on their expiries: Payables and liabilities Within 1 From 1 to 5 Over 5 Expiry and guarantees year years years Guarantees Total Amount at 12/31/2023 19,978,846 15,838,328 911,631 0 36,728,805 Loans and financing 7,311,754 10,751,117 0 0 18,062,871 Lease liabilities 519,412 919,092 0 0 1,438,504 Other current financial receivables 776,609 0 0 0 776,609 Trade payables and other payables 8,123,139 0 0 0 8,123,139 Tax payables 800,484 0 0 0 800,484 Public grants 274,103 2,681,847 0 0 2,955,950 Amount at 12/31/2024 17,805,501 14,352,056 0 0 32,157,557 Current and non-current financial liabilities refer to payables to banks. Those payables were recognized at amortized cost, considering the time value of money. With reference to payables to credit institutions, it is specified that these loan agreements do not contain financial covenants, and/or performance obligations and obligations to refrain from an act, including negative pledges, and cross-default scenarios. Based on the analyses of expected future cash flows and the stress tests conducted by the Company, the financial plan regarding future outlays necessary to repay debt is considered sustainable. At December 31, 2024, the Group had the following bank credit lines outstanding, for which the credit line granted and the portion used are shown. Lines of credit Ordinary current account overdraft Utilization of overdraft Lines of credit Ordinary current account overdraft Utilization of overdraft BPER BANCA 15,000 0 UNICREDIT 25,000 0 MONTE DEI PASCHI DI SIENA 35,000 0 CREDIT AGRICOLE 35,000 0 BANCO BPM 20,000 0 INTESA SAN PAOLO 25,000 0 BANCA MPS BABELEE 10,000 4,970
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76 BANCA INTESA BABELEE 25,000 24,815 BANK AUSTRIA INFINICA 150,000 0 Total 340,000 29,785 Issuing bank Type Overdraft facility Drawing at 12.31.2024 BPER BANCA Advances on invoices 600,000 26,673 BPER ADVANCE FOR CONTRIBUTIONS Advance for contributions 575,000 575,000 UNICREDIT Advances on invoices 1,200,000 472,330 UNICREDIT international Advances on invoices 230,000 175,221 BNL Advances on invoices 750,000 749,226 MONTE DEI PASCHI DI SIENA Advances on invoices 400,000 233,073 CREDIT AGRICOLE Advances on invoices 500,000 463,177 SANFELICE 1893 BANCA POPOLARE Advances on invoices 400,000 0 BANCO BPM Advances on invoices 200,000 0 CREDIT CARDS AND QUARTERLY INTEREST EXPENSE 84,516 Total 2,779,216 At December 31, 2024, the Group had the following bank factoring agreements outstanding: UNICREDIT FACTORING S.p.A. Maximum amount that can be assigned Euro 1.2 million At December 31, 2024 the amount used came to Euro 951,502 (Euro 851,551 in the previous year). 22. CURRENT AND NON-CURRENT LEASE LIABILITIES Non-current lease liabilities amounted to Euro 919,092 (Euro 833,494 in the previous year). The table below shows the breakdown of the changes during the year: Non-current liabilities Non-current lease liabilities Value at Value at Changes 12/31/2024 12/31/2023 (in Euro) Operating leases and rentals 903,746 426,666 477,080 Real estate leases payable 15,346 406,828 -391,482 Total 919,092 833,494 85,598 Current lease liabilities amounted to Euro 519,412 (Euro 479,733 in the previous year).
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77 The table below shows the breakdown of the changes during the year: Current liabilities Current lease liabilities Value at Value at Changes 12/31/2024 12/31/2023 (in Euro) Operating leases and rentals 446,309 310,902 135,407 Real estate leases payable 73,103 168,831 -95,728 Total 519,412 479,733 39,679 Those amounts represent the effects of the application of IFRS 16 since January 1, 2022. 23. NET LIABILITIES FOR EMPLOYEE BENEFITS Plans for employees, which can be classified as defined benefit plans, are represented by employee severance indemnity. Provisions for personnel at December 31, 2024 amounted to Euro 1,912,756 (Euro 2,018,060 in the previous year). The actuarial gains recorded at December 31, 2024, equal to Euro -639,01, are essentially connected to the change in benchmark economic parameters (discount and inflation rates). According to national regulations, the amount due to each employee accrues based on their service, and is disbursed when the employee leaves the company. The indemnity due for termination of employment is calculated based on its duration and the taxable remuneration of each employee. The liability, revalued annually based on the official index of the cost of living and the interest pursuant to law, is not associated with any conditions or vesting period, or any obligation of financial funding. Therefore, there are no fund assets. Actuarial measurement of employee severance indemnity was performed assuming a closed group population, on the basis of “accrued benefit” methodology, using the Projected Unit Credit criterion, as established in paragraphs 67-69 of IAS 19. Following the introduction of the Pension Reform, that methodology differs based on whether it was applied to a company with at least 50 employees in 2006 or with fewer than 50 employees in 2006. In 2006, all companies of the Doxee Group had fewer than 50 employees, and therefore, they apply the methodology set out for companies with fewer than 50 employees. That methodology is characterized by valuations that express the present average value of the obligations of employee severance indemnity accrued based on the worker’s service up to the time that the valuation is conducted.
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78 The calculation methodology used can be summarized in the following steps: • projection for each employee in service at the valuation date of the employee severance indemnity already allocated and the future amounts of employee severance indemnity that will accrue up to the uncertain time of payment, projecting the worker’s remuneration; • calculation for each employee of the probability of payments of employee severance indemnity which will have to be made by the Company in the event that the employee leaves due to dismissal, resignation, disability, death or retirement, also for requests for advances; • discounting, at the valuation date, of each payment whose probability has been calculated; • reproportioning, for each employee, of the benefits whose probability has been calculated and discounted based on the seniority accrued at the valuation date, out of the overall seniority at the uncertain date of liquidation. Non-current liabilities Net liabilities for employee benefits (in Euro) Amount at 12/31/2023 2,018,060 Labor cost 256,090 Financial expenses 61,788 Benefits paid -422,542 Actuarial (gains)/losses posted to equity -639.01 Amount at 12/31/2024 1,912,756 The main actuarial assumptions used at December 31, 2024 are as follows: Amount at 12/31/2023 Annual discount rate 3.08% Annual inflation rate 2.00% Annual rate of increase in employee severance indemnity 3.00% Nominal rate of salary increase 0.50% Amount at 12/31/2024 Annual discount rate 3.18% Annual inflation rate 2.00% Annual rate of increase in employee severance indemnity 3.00% Nominal rate of salary increase 0.50% 24. DEFERRED TAX LIABILITIES The deferred tax funds are entered in the liabilities for a total of Euro 972,234 (Euro 1,118,612 in the previous financial year; Euro 1,086 thousand of this amount refers to application of the Purchase Price Allocation performed on the assets of Infinica Gmbh. The remainder derives from application of the IFRS. Deferred taxes were calculated with reference to the IRES tax for the individual Group companies.
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79 Non-current liabilities Deferred tax liabilities (in Euro) Amount at 12/31/2023 1,118,612 Change -146,378 Amount at 12/31/2024 972,234 25. OTHER NON-CURRENT LIABILITIES Other non-current liabilities amounted to Euro 115,509 (Euro 312,138 in the previous year). The table below shows the breakdown of the changes during the year: Non-current liabilities Value at 12/31/2024 Value at 12/31/2023 Changes Other non-current liabilities (in Euro) Deferred income and accrued expenses 0 216,357 -216,357 Derivative financial instruments – liabilities 115,509 95,781 19,728 Total 115,509 312,138 -196,629 26. CURRENT AND NON-CURRENT PUBLIC GRANTS Current and non-current public grants refer to deferred income relating to operating grants from the government for R&D projects and the R&D tax credit recognized based on the deferred revenue method, to match the level of the positive income component, based on a criterion of systematic, rational recognition in line with the process of amortizing the costs they refer to, capitalized under balance sheet assets. Details of the changes during the year and the breakdown between current and non-current items are shown below, specifying that the non-current portion refers to the portion that will be charged to the income statement beyond 12 months. Non-current liabilities Value at 12/31/2023 Changes Value at 12/31/2024 Public grants (in Euro) Tax credit and public R&D grants 2,130,926 550,921 2,681,847 Total 2,130,926 550,921 2,681,847
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80 Current liabilities Value at 12/31/2023 Changes Value at 12/31/2024 Public grants (in Euro) Tax credit and public R&D grants 1,009,014 -734,911 274,103 Total 1,009,014 -734,911 274,103 27. OTHER CURRENT FINANCIAL LIABILITIES Other Current financial liabilities amounted to Euro 776,609 (Euro 673,383 in the previous year). The table below shows the breakdown of the changes during the year: Current liabilities 31.12.2023 Changes 31.12.2024 Other current liabilities (in Euro) Derivative instruments – liabilities 0 0 0 Other 5,331 6,740 12,071 Liability to Simest 0 764,538 764,538 Factoring 668,052 -668,052 0 Total 673,383 103,226 776,609 The decrease of Euro 668,052 refers to liabilities advanced with recourse through factoring, a funding method which the Company was no longer using in FY 2024. The liability of Euro 764,538 to Simest refers to the holding in Doxee US, which will be redeemed during the first semester of 2025. Last year, this liability was reclassified in the non-current liabilities. 28. TRADE PAYABLES AND OTHER PAYABLES Trade payables and other payables are recognized under current liabilities for a total of Euro 8,124,539 (Euro 10,690,540 in the previous year). The table below shows the breakdown of the changes during the year: Current liabilities Suppliers Associates Other payables Total Trade payables and other payables (in Euro) Amount at 12/31/2023 7,502,947 0 3,187,593 10,690,540 Change -2,913,068 14,777 332,290 -2,566,001 Amount at 12/31/2024 4,589,879 14,777 3,519,883 8,124,539
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81 The breakdown of item “Other payables” and the changes during the year are shown below: Current liabilities Value at 12/31/2023 Changes Value at 12/31/2024 Other payables (in Euro) Payables to social security agencies 753,241 -166,530 586,711 Payables due to employees 1,647,928 -382,419 1,265,509 Security deposits 110,000 -101,351 8,649 Sundry receivables 65,060 1,443,113 1,508,173 Accrued liabilities 12,990 97,010 110,000 Deferred income 598,374 -557,533 40,841 Total 3,187,593 332,290 3,519,883 29. TAX PAYABLES Payables for current taxes are recognized under current liabilities for a total of Euro 800,484 (Euro 606,244 in the previous year). The table below shows the breakdown of the changes during the year: Current liabilities 12/31/2023 Changes 12/31/2024 Tax payables (in Euro) Tax authorities for VAT 93,731 222,772 316,503 Payables for withholdings 449,135 -64,986 384,149 Payables for current taxes 63,378 36,454 99,832 Total 606,244 194,240 800,484 INCOME STATEMENT 30. REVENUES FROM CONTRACTS WITH CLIENTS Revenues for the year amounted to Euro 26,472,776, higher than the figure achieved at 12/31/2023. This increase is mainly due to the increase in turnover in the DACH area. The Value Proposition transformation project has enabled the creation of a market positioning with an offer based on the Doxee Platform technology, with a typically tech vendor go-to-market. The technology is offered to the market in Software as a Service (SaaS), Platform as a Service (PaaS) and On-premise (Op) modes: • the SaaS model consists in delivering products in the form of the Cloud-based standard service;
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82 • the PaaS model consists in delivering products by having customers use the Doxee Platform as the basis for providing and delivering SaaS services; • the Op model consists in granting the rights to use the Issuer’s technology through licensing in subscription mode (opex). The breakdown of revenues by product line and delivery method is shown below: Total revenues from sales and services 12/31/2024 12/31/2023 Change in thousands of Euros Subscriptions 19,238 18,690 548 Professional Services 7,235 7,154 81 Total revenues from sales and services 26,473 25,844 629 Income Statement Value at 12/31/2024 Value at 12/31/2023 Change Revenues from contracts with clients by channel (in Euro) SAAS 26,286,528 25,719,215 567,313 PAAS 153,000 102,000 51,000 ON Premise 33,248 22,425 10,823 Total 26,472,776 25,843,640 629,136 The breakdown of revenues by geographical area is shown below: Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Revenues by geographical area (in Euro) Italy 18,573,096 19,744,255 -1,171,159 EU 5,881,927 4,792,535 1,089,392 Extra EU 2,017,753 1,306,850 710,903 Total 26,472,776 25,843,640 629,136 31. OTHER REVENUES AND INCOME Other revenues and income amounted to Euro 1,585,262 (Euro 868,916 in the previous year), and mainly refer to the reversal to the income statement of the revenues relating to R&D tax credits and R&D grants accrued in the previous years, with effects on the income statement relating to the current year and the amounts accrued during the current year.
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83 The table below shows the breakdown of the changes during the year: Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Other revenues and income (in Euro) Other revenues 1,043,188 267,820 775,368 Revenues from participation in finished tenders 540,858 601,096 -60,238 Capital gains 1,216 0 1,216 Total 1,585,262 868,916 716,346 32. INTERNALLY GENERATED FIXED ASSETS Internally generated fixed assets refer solely to the costs for personnel dedicated to development of the software platform, and the constant research into innovative solutions for Business Intelligence and innovation in artificial intelligence and mass data management. The Companies also make use of external consultancy arrangements for the development of its platform; the relative values are capitalized directly. Income Statement Value at Value at Changes 31.12.2024 31.12.2023 Internally generated fixed assets (in Euro) Internally generated fixed assets 1,789,644 2,820,380 -1,030,736 Total 1,789,644 2,820,380 -1,030,736 33. PRODUCTION COSTS Costs for the purchase of raw materials and consumables came to Euro 8 thousand (Euro 9 thousand in the previous year) and refer mainly to stationery and consumable materials. Costs for services amount to Euro 14,205 thousand (Euro 14,903 thousand in the previous year). The decrease compared to 2023 is due to the redefinition of the market positioning, with the consequent restructuring of sales and marketing operations. A breakdown of the item by category is shown below. Income Statement 31.12.2024 31.12.2023 Changes Costs for services (in thousands of Euros) Services and outsourcing 4,477 4,636 -159 IaaS direct costs 1,637 1,910 -273 Professional services 3,260 2,809 451 Sales and marketing costs 808 1,274 -466 Administration and other general overhead costs 4,022 4,274 -252 Total 14,205 14,903 -698
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84 34. COSTS FOR EMPLOYEE BENEFITS The item includes all employee personnel costs and amounted to Euro 12,380,858 (Euro 13,548,896 in the previous year). At 12/31/2024, the number of employees of the Doxee Group came to 153, down by 30 compared to 12/31/2023. This decrease was enabled by an improvement in the efficiency of internal processes and the consequent reduction in the need to replace staff leaving the organization. Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Employee benefits (in Euro) Gross remuneration 9,330,793 10,726,738 -1,395,945 Social security charges 2,541,965 2,203,619 338,346 IAS 19 0 -29,350 29,350 IFRS 2 0 144,453 -144,453 Employee severance indemnity 448,447 498,916 -50,469 Other charges 59,653 4,520 55,133 Total 12,380,858 13,548,896 -1,168,038 35. OTHER OPERATING COSTS Other operating costs amounted to Euro 313,095 (Euro 1,272,077 in the previous year). Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Other operating costs (in Euro) Membership dues 53,333 52,971 362 Taxes and duties 88,301 94,221 -5,920 Donations 0 0 0 Alloc. for risks 0 0 0 Annual licenses 0 6041 -6,041 Capital losses 0 0 0 Other charges 171,462 198,129 -26,667 Write-downs of receivables 0 920,715 -920,715 Total 313,095 1,272,077 -958,982
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85 36. AMORTIZATION, DEPRECIATION AND WRITE-DOWNS Amortization and depreciation was calculated based on the useful life of the asset and its use during the production phase. Amortization of intangible assets posted to the income statement amounted to Euro 4,498,846 (Euro 3,700,266 in the previous year). Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Amortization of intangible assets (in Euro) Amortization of development costs 3,935,722 3,108,188 827,534 Amortization of other intangible assets 563,124 592,078 -28,954 Total 4,498,846 3,700,266 798,580 Depreciation of tangible assets posted to the income statement amounted to Euro 105,335 (Euro 249,737 in the previous year). Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Depreciation of tangible assets (in Euro) Deprec. of plant and machinery 0 0 0 Depreciation of tangible assets 105,335 149,564 -44,229 Deprec. of other leased tangible assets 0 100,173 -100,173 Total 105,335 249,737 -144,402 Lastly, “Depreciation of other tangible assets” includes Euro 591,381 (Euro 391,185 in the previous year) of depreciation of leased assets pursuant to IFRS 16. Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Depreciation of rights-of-use (in Euro) Depreciation of rented tangible goods 331,549 265,942 65,607 Depreciation of leased properties 259,832 125,243 134,589 Total 591,381 391,185 200,196 37. FINANCIAL INCOME AND EXPENSES Financial income came to a total of Euro 144,328 in 2024 (Euro 286,394 in the previous year). This item comprised:
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86 Income Statement 31.12.2024 31.12.2023 Changes Financial income (in Euro) Interest income on current accounts 6,514 716 5,798 Interest receivable on intercompany loans 0 132,515 -132,515 Financial income 137,814 153,162 -15,348 Total 144,328 286,394 -142,066 Financial charges came to a total of Euro 1,204,968 in 2024 (Euro 1,065,848 in the previous year). That item included interest referring to the application of IFRS 16 and the discounting of employee severance indemnity. This item comprised: Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Financial expenses (in Euro) Interest expense on current accounts 119,608 33,678 85,930 Interest expense on bank loans 695,239 441,478 253,761 Fees on bank guarantees 40,603 17,784 22,819 Interest expense from payment extensions 0 4,900 -4,900 Supplier interest expense 55,715 104,063 -48,348 Interest expense from derivatives 0 -23,029 23,029 Financial expenses 293,804 190,063 103,741 Financial charges on USA option 0 34,495 -34495 Financial charges on DOXEE CEE option 0 168,487 -168,487 Financial charges IAS 19 0 67,482 -67,482 Financial charges IFRS 16 0 26,447 -26,447 Interest rate subsidies 0 0 0 Total 1,204,968 1,065,848 139,120 Foreign exchange gains (losses) included: Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Foreign exchange gains (losses) (in Euro) Realized foreign exchange gains 2,189 23,619 -21,430 Realized foreign exchange losses -31,851 -127,322 95,471 Foreign exchange gains from valuation 5,591 -39,136 44,727 Foreign exchange losses from valuation 259,071 -160,822 419,893 Total 235,000 -303,662 538,662
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87 The negative difference between foreign exchange gains and losses was mainly generated by the trade collections and payments, and includes the foreign exchange differences generated from the alignment of receivables and payables in foreign currency at the exchange rate in force at the end of the year. 38. INCOME TAXES The Company allocated income taxes for the year by applying the tax regulations in force. Current taxes are the taxes relating to the financial year, as stated in the tax returns. Lastly, deferred and prepaid taxes regard positive or negative income components respectively subject to taxation or deduction in years different from the year in which they are recorded as per statutory regulations. At 12/31/2024 prepaid taxes were the highest item in the Group’s tax heading. Income Statement Value at 12/31/2024 Value at 12/31/2023 Changes Taxes (in Euro) Current taxes -43,012 -2,229 -40,783 Deferred tax assets -695,084 434,061 -1,129,145 Deferred tax liabilities 146,378 88,922 57,456 Total -591,719 520,754 -1,112,473 The table below presents the representation of the effective tax rate with the theoretical tax rate of the Parent Company: Income taxes Reconciliation statement 12/31/2024 Rate 12/31/2023 Rate Profit/(loss) before tax - 3,079,714 -5,624,751 Theoretical tax burden -739,131 24.00% -1,349,940 24.00% Write-downs of assets 191,709 -6.22% 441,166 -7.84% FTA 19,307 -0.63% -7,950 0.14% Tax-free income 0.00% - 0.00% Non-deductible costs/(non-taxable income) and other -959,489 31.16% 75,523 -1.34% Net prepaid/deferred taxes -548,706 17.82% 522,983 -9.30% Current taxes from foreign subsidiaries -43,012 1.40% -2,229 0.04% Irap 0 0.00% - 0.00% Effective income taxes -591,718 19.21% 520,754 -9.26%
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88 Reconciliation statement 12/31/2024 Taxable amount Tax Rate Pre-tax result - 3,079,714 Temporary increases 74,883 - 739,131 24.00% Permanent increases 1,311,193 Total Italian increases 1,386,076 332,658 -10.80% Temporary decreases 2,303,804 Permanent decreases 629,533 Total Italian increases - 2,933,337 - 704,001 22.86% Net deferred taxation presented in financial statements from Italy - 632,609 20.54% Net deferred taxation presented in financial statements from foreign subsidiaries 83,903 -2.72% Current taxes from foreign subsidiaries - 43,012 1.40% Income taxes presented in Financial Statements (Current and Deferred) - 591,718 20.54% Reconciliation statement 12/31/2023 Taxable amount Tax Rate Pre-tax result - 5,624,751 - 1,349,940 24.00% Temporary increases 713,799 Permanent increases 1,816,297 Total increases 1,816,297 435,911 -7.75% Temporary decreases 911,072 Permanent decreases 3,091,900 Total increases 3,091,900 742,056 -13.19% Net deferred taxation presented in financial statements from Italy 434,169 -9.26% Net deferred taxation presented in financial statements from foreign subsidiaries 88,814 -1.58% Current taxes from foreign subsidiaries - 2,229 0.04% Income taxes presented in Financial Statements (Current and Deferred) - 520,754 -9.26% OTHER INFORMATION 39. NET FINANCIAL POSITION The Group’s Net Financial Position (or net financial debt) is calculated as the difference between current and non-current financial payables net of cash and cash equivalents and current financial assets, as well as non-current financial assets, excluding current and non-current lease liabilities. It also includes the financial liabilities for short and/or long-term lease contracts and the non-remunerated payables that have a significant component of implicit or explicit financing and any other non-interest bearing loans. The Group’s net financial position was as follows: ESMA NET FINANCIAL DEBT 31.12.2024 31.12.2023 Changes Financial debt 19,304,966 21,578,314 -2,273,348 Adjustments to exclude: Receivables and other long-term financial assets 31,386 32,785 -1,399 Restated net financial debt 19,336,352 21,611,099 2,274,747
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89 ESMA NET FINANCIAL DEBT 12/31/2024 12/31/2023 Difference Cash and cash equivalents 1,057,142 776,203 280,939 Cash equivalents 0 0 0 Other current financial assets 0 0 0 Liquidity (A+B+C) 1,057,142 776,203 280,939 Current financial payables 3,346,204 4,677,728 -1,331,524 Current portion of medium/long-term financial payables 5,261,571 2,994,760 2,266,811 Current Financial Debt (E+F) 8,607,775 7,672,488 935,287 Net Current Financial Debt (G-D) 7,550,633 6,896,285 654,348 Non-current financial payables 11,785,718 14,714,814 -2,929,096 of which debt instruments 115,509 95,781 20,008 Trade payables and other non-current payables 0 0 0 Non-current financial debt (I+J+K) 11,785,718 14.714814 -2,929,096 TOTAL NET FINANCIAL DEBT 19,336,352 21,611,099 -2,274,747 The Doxee Group's Net Financial Debt amounted to approximately Euro 19,336 thousand (Euro 21,611 thousand at December 31, 2023), of which cash and cash equivalents of Euro 1,057 thousand. FY 2024 saw an improvement in Net Financial Position of Euro 2,274,747, due almost entirely to the parent company, marking a return to generation of the cash flow needed to meet commitments both to the financial institutions and to Simest. 40. CASH FLOW STATEMENT The analysis of the cash flow statement reveals an improvement in the Group’s financial position, which generated a net positive operating cash flow of 2.41 million, in spite of a significant reduction in indebtedness to suppliers (trade payables decreased by 2.93 million). The positive contribution to operating cash flow generation is definitely due to the increase in margins, the gradual improvement of the efficiency of internal processes and strong cost-cutting measures, especially by the Parent Company. With regard to investments, the company proceeded with its technological development plans, capitalizing Research and Development costs of about 3.6 million Euro compared to the 7.4 million of the previous year. The repayment of Euro 5.5 million of loans to financial intermediaries, against fresh borrowing of Euro 1.68 million, reduced financial leverage. Interest payments to financial institutions amounted to Euro 1.062 million compared to Euro 1.369 million the previous year. With reference to payables to credit institutions, it is specified that these loan agreements do not contain financial covenants, and/or performance obligations and obligations to refrain from an act, including negative pledges, and cross-default scenarios.
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90 During the year, the Group benefited from a capital increase of Euro 5.8 million. 41. GUARANTEES AND COMMITMENTS AND CONTINGENT LIABILITIES The table below shows bank guarantees issued in the interest of the parent. In favor of Issuing bank Amount Valid until University of Modena and Reggio Emilia Unicredit 96,000 unlimited term Enel Servizi SpA Unicredit 127,921 unlimited term Schlinder Bper 50,000 On revocation Wind Telecomunicazioni spa MPS 3,000 31/12/2025 Doxee Spa (SIMEST) MPS 820,836 31/12/2025 Wind Telecomunicazioni spa MPS 50,000 31/12/2025 MISE - Italian Ministry for Business and Made in Italy San Felice 879,387 31/03/2028 Poste Italiane SpA Crédit Agricole 22,982 On revocation Postel SpA Crédit Agricole 150,000 On revocation Total 2,200,126.39 42. OTHER INFORMATION Employment data The table below indicates the number of employees of the Group, broken down by category and calculated considering the daily average. Number of employees by category Average 2024 % Final 2024 % Average 2023 % Final 2023 % Senior managers 11.5 6.85% 11 7.19% 12 6.38% 12 6.56% Middle managers 23 13.69% 22 14.38% 22.5 11.97% 24 13.11% Clerical staff 133.5 79.46% 120 78.43% 153.5 81.65% 147 80.33% Total 168 100.00% 153 100.00% 188 100.00% 183 100.00% During 2024 there was a decrease of 30 units, mainly due to the reduction in the workforce at the parent Doxee S.p.A. The amount of the remuneration due to the members of the corporate bodies for FY 2024 is Euro 35,000 for the board of statutory auditors and Euro 175,000 for the Board of Directors. The following is the remuneration paid to the independent auditors for the year ending December 31, 2024: (thousands of Euro) Party providing the service Readership group Remuneration FY 2024 Type of services Audit of the accounts BDO Italia S.p.A. Doxee S.p.A. 59 The audit services also include the audit of the statement of research and development expenses and services for the voluntary audit of the half-yearly consolidated financial statements.
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91 43. SUBSEQUENT SIGNIFICANT EVENTS AND FORESEEABLE EVOLUTION OF OPERATIONS It should be noted that the merger by incorporation of Babelee S.r.l. in Doxee S.p.A. is currently nearing completion. This operation was approved by the Boards of Directors of both companies on September 29, 2024, by the Board of Directors of Doxee S.p.A. meeting in extraordinary session with minutes taken by Notary Public Silvio Vezzi, and by the extraordinary shareholders’ meeting of Babelee S.r.l. held on January 29, 2025; the deed of merger is expected to be signed in April 2025. This merger will legally come into force, pursuant to Article 2504-bis par. 2 of the Italian Civil Code, from the last day of the month during which the last of the registrations envisaged by Article 2504 par. 2 of the Italian Civil Code was made and executed pursuant to Article 2504 par. 3 of the Italian Civil Code, i.e. from the date given in the deed of merger. For further information, please refer to the Report on Operations; These Financial Statements, composed of the Statement of Financial Position, Statement of profit/loss for the year, Statement of other comprehensive income, Statement of changes in Equity, Cash Flow Statement and Notes, provides a true and fair view of the equity and cash flow situation and the income statement results for the year, and agrees with the accounting records. Modena (MO), March 24, 2025 The Chairman of the Board of Directors Paolo Cavicchioli