Expert ai S p A : .ai Group Annual Report 2022 - IFRS

EXPERT.AI GROUP

FINANCIAL REPORT

PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS APPROVED BY THE EUROPEAN UNION

AS AT 31 December 2022

Table of contents

EXPERT.AI MANAGEMENT REPORT AS AT 31/12/2022	2
IFRS CONSOLIDATED FINANCIAL STATEMENTS AS AT 31/12/2022	35
AUDIT FIRM'S REPORT AS OF 31/12/2022	94

EXPERT.AI GROUP

FINANCIAL REPORT - 31 DECEMBER 2022

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EXPERT.AI MANAGEMENT REPORT AS AT 31/12/2022

EXPERT.AI GROUP

FINANCIAL REPORT - 31 DECEMBER 2022

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Table of contents

I. PROFILE OF EXPERT.AI	4
LETTER TO SHAREHOLDERS	4
CORPORATE BODIES	5
KEY SHAREHOLDERS OF PARENT COMPANY	7
APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS	8
GROUP STRUCTURE	8
BUSINESS	10
CUSTOMERS	10
II. RESEARCH AND DEVELOPMENT ACTIVITIES	11
III. OPERATING PERFORMANCE	13
EXAI.MI SHARE PRICE	13
MAIN CORPORATE EVENTS OCCURRED IN THE YEAR	14
General economic performance	18
The scenario of the national economy	19
REFERENCE MARKET	22
OPERATING PERFORMANCE OF THE GROUP	24
Main economic data	24
Main balance sheet data	26
FORESEEABLE EVOLUTION OF MANAGEMENT	29
TREASURY SHARES	29
IV. ENVIRONMENT, PERSONNEL AND RISKS	29

EXPERT.AI GROUP

FINANCIAL REPORT - 31 DECEMBER 2022

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I. PROFILE OF EXPERT.AI

Dear Shareholders,

This report supplements the consolidated financial statements so as to provide all additional information for a better and clearer understanding of the performance of the consolidated companies, which cannot result from the mere reading of the consolidated financial statements and the explanatory notes.

LETTER TO SHAREHOLDERS

Our deep commitment and significant investments since the beginning of our business transformation have enabled expert.ai to respond concretely to the great interest in language solutions based on artificial intelligence.

Most investments were made in 2022 to offer the best platform implementing the potential of artificial intelligence for language in any process or workflow, both on-premise and in the cloud.

During the year, we also met the demand for advanced language solutions for intelligent process automation and document processing within our key vertical markets, including insurance, financial services, healthcare and the pharmaceutical industry, gearing our go-to-market strategy towards these sectors.

We intend to pursue growth and profitability in a balanced way, while continuing to consolidate our leadership in the adoption of increasingly innovative artificial intelligence technologies that deliver real value to organisations.

Walter Lloyd Mayo III

(CEO expert.ai)

EXPERT.AI GROUP
FINANCIAL REPORT - 31 DECEMBER 2022	4