Servizi Italia

Investor Presentation • Oct 23, 2018

www-si-servizitalia.com

STAR CONFERENCE 2018

London, 23 October

BUSINESS OVERVIEW

Washing and rental of flat linen (sheets, sleepers, blankets), uniforms (scrubs, uniforms, gowns, etc. for staff), mattresses and pillows.

TEXTILE STERILIZATION

Sterilization of cotton fabrics and Reusable Technical Fabric for beds and surgical gowns.

Procedural kits and surgical drapes. Accessory parts made of disposable material.

SURGICAL INSTRUMENTS STERILIZATION

Collection, conditioning, maintenance and sterilization of surgical instruments and kits.

CSSD Design, Installation, Renovation and Management.

Validation and control of sterilization processes.

2

2017 Consolidated Revenues 2017 Consolidated Revenues 2017 Consolidated Revenues

GLOBAL PRESENCE

GROUP EVOLUTION

THE EARLY DAYS 1986 – 2002

• 1986: Foundation of Servizi Italia, active in laundry sector.
• 2002: Coopservice acquires 100% of SI share capital. Transformation into a multiservice company.

NEW PROSPECTS 2006 – 2007

• Start of sterilization activities.
• 2007: IPO at Milan Stock Exchange. Presentation to the international financial community.

GROWTH IN ITALY 2008 – 2011

• Acquisitions in Italy in laundry industry.
• Development of sterilization business.
• Achievement of STAR qualification by Borsa Italiana.

INTERNATIONAL DEVELOPMENT 2012 – 2015

• 2012: Acquisition of the first laundry in Brazil (additional transactions in 2013 and 2015).
• 2014: Start of sterilization business in Turkey.
• 2014: Start of greenfield laundry business in India.
• 2015: Achievement of a sterilization tender in Albania.
• 2015: Expansion in Turkey in laundry industry, through the acquisition of Ankateks.

CONSOLIDATION AND DIVERSIFICATION 2016– 2018

• Consolidation of the existing markets: Acquisitions in laundry industry in Italy (2016) and in Albania (2018). Expansion plans in Brazil.
• Diversification in new business lines: Acquisition of Steritek (2017) and start of nonhealthcare laundry business (Bolognini branch acquisition on 2018).
• New Markets: Start of sterilization activity in Morocco (2017) and Joint Venture in Asia (constitution of idsMED Servizi Plus in 2018). 4

BUSINESS OVERVIEW

MIX PRODUCT/SERVICE

Multi-service approach by offering a mix of customized services.

High barriers on entry due to know-how and investments needed.

POSITIONED FOR CREATING VALUE

Costs optimization. Commercial synergies. High retention rate of contracts. Focus on high value-added services.

MEET CUSTOMER NEEDS

Social sustainability. Rationalization of healthcare costs. High control of Healthcare costs. Financial benefits for hospitals.

LONG TERM CONTRACTS

4-year average contracts volume based OR monthly fixed fee

6-year average contracts

volume based OR monthly fixed fee

BUSINESS GROWTH STRATEGY

ITALIAN MARKET

overview

• Italian Wash-hire Healthcare market turnover: Euro 765 mln.
• Highest International quality standards.
• SI's customers are the main Public hospitals and Healthcare Institutions.
• Outsourcing rate is high in laundry market but still low in sterilization area. Market
• Undisputed market leader in all the segments.
• Well positioned in the areas of the Country.
• Servizi Italia manages more than 60,000 beds and about 500,000 interventions/year.
• Full range of services and customizations.
• Cyprus Constant search and identification of growing and diversification strategies in order to keep and to improve margins.

BRAZILIAN MARKET

• Over 700,000 Kg/day of potential linen only in Sao Paulo. • ~1,000 healthcare facilities totaling over 92,500 beds. • New potential outsourcing: only 45% of wash-hire is currently outsourced and no sterilization service provider is present. Market overview

• Wash-hire potential market is estimated in Reais 840 mln.

• Primary player: 1 st player in Sao Paulo, 2 nd in Brazil.
• Recognized in the market as high quality provider.
• Well positioned in both Private and Public areas.
• Leader in identifying new solutions for the clients.
• Deep market knowledge of local team and partner.
• Rental model improved successfully.

M A R K E T C O N S O L I D AT I O N I N S A O PA U L O . N E W D E V E L O P M E N T A R E A S ( A M A Z O N A S ) . S TA R T O F S T E R I L I Z AT I O N B U S I N E S S . O R G A N I Z AT I O N A N D M A N A G E M E N T E F F I C I E N C I E S . G o a l s

TURKISH MARKET

*2017 Consolidated Revenues (6 months of only laundry business).

• About 6,000,000 surgical intervention/year.
• Construction of new PPP hospitals, increasing the nr of beds up to about 250,000 over the next few years.
• ~1,400 healthcare facilities totaling over 195,000 beds.
• Low outsourcing rate in both laundry and sterilization businesses. Market
• Main player of both laundry (Ankateks) and sterilization (SAS) market.
• Recognized by the market as high quality provider.
• Achieved multiple high-complexity PPP contracts, requiring International standards and with long term duration.
• Good margins and volumes market.

INDIAN MARKET

• The Indian market has recently started to outsource wash-hire activities.
• About 90,000 beds only in Delhi NCR, totaling about kg 200,000,000 of linen. • Low outsourcing rate. Market
• Over 195,000 healthcare facilities throughout India.
• Business developed greenfield and first volumes started in Oct-2015.
• Main player in Healthcare laundry business in India.
• Technologically advanced laundry plant (near Delhi).
• Recognized by the market as high quality provider.
• Volumes steadily increasing.
• High capacity plant (45 tons/day vs 26 tons/day currently under use).

ALBANIAN MARKET

*~7.1 mln Euro. 100% of 2017 SaniService revenues (not consolidated in SI consolidated revenues).

G o a l s

• Total value of contract awarded include all public and private hospitals of Albania.
• More than 80,000 surgical intervention/year.
• Servizi Wash-hire market is expected to have interesting growth prospects in terms of both revenues and profitability. Market
• Unique player in Healthcare sterilization business.
• Recognized by the market as high quality provider.
• Good margins and volumes market.
• Laundry market still fragmented: target is to consolidate it starting from 2019.

C O M P L E T E T H E D E V E L O P M E N T O F S T E R I L I Z AT I O N A C T I V I T I E S . B E C O M E T H E L A U N D R Y M A R K E T L E A D E R . I M P R O V E M E N T O F T H E S TA N D A R D S .

MOROCCAN MARKET

• Market with more than 315,000 surgical intervention/year. • Around 3,000 healthcare facilities totaling over 21,000 beds

• Primary Healthcare destination in Africa. • Sterilization industry still almost fully insourced. Market
• First and unique operator in offering sterilization services and CSSD management in the Country.
• Constitution of Centre Marocain de Sterilisation.
• Direct financial and quality benefits for the local Healthcare.
• Cooperation with local universities for starting sterilization courses.

SOUTHEAST ASIAN MARKET

• Access to over 10,000 healthcare institutions throughout the Asian-Pacific area.
• No main players in Laundry business. • Sterilization services fully insourced. Market
• Established IdsMED ServiziPlus in Singapore, which will operate for identifying and developing new business opportunities in the sterilization and washhire services.
• Joint venture targets firstly Asian-Pacific area and secondly whole Asian market.
• Local partner with large Healthcare network.

S TA R T F E A S I B I L I T Y S T U D I E S . S TA R T S T E R I L I Z AT I O N P I L O T P R O J E C T S . M & A L A U N D R Y TA R G E T S . B E C O M E T H E R E F E R E N C E A R E A L E A D E R . G o a l s 13

GROUP VALUES

Focus on customers

Investing in research of tailor solutions to propose and carry out together with customers.

Efficiency research

Services are based on a process of industrial production subjected to frequent analysis, in order to production efficiency goals.

Organizational solidity and reliability

Servizi Italia is a deep-rooted company, with a wide production network.

Product and process innovation

Backed by a strong cooperation with research centers and international university centers.

Values

The approach of Servizi Italia is to guarantee a high level of service to benefit of patients and citizens, as beneficiaries of assistance and health services.

Sharing Transparency Responsibility AwarenessConsistency Sustainability

Safety and transparency

Guaranteed by the traceability of products and the quality system certification process.

Integrity, business ethics and Professionalism

Promotion of business ethics, prevention of corruption and protection of reputation. Enhance skills and talents, attracting the best resources.

Internationalization Being a multinational company for organization, culture, modes of presence and respect in global markets.

CONSOLIDATED ECONOMICS RESULTS

Servizi Italia Consolidated ('000 euro) P&L	FY 2016	FY 2017	1H 2017	1H 2018
Revenues	237	252	125	126
	716	102	333	476
change %		6 1% ,		0 9% ,
EBITDA	64	69	34	33
	022	829	565	899
%	26	27	27	26
	9%	7%	6%	8%
	,	,	,	,
EBIT	745	16	7	8
	13	376	991	876
%	8%	6	6	0%
	5	5%	4%	7
	,	,	,	,
Net Result	10 515	14 365	453 7	453 7
%	4	5	5	5
	4%	7%	9%	9%
	,	,	,	,

ECONOMIC AND FINANCIAL HIGHLIGHTS IN 2018:

+

+

+

+

–

–

Double digit growth in 1H 2018 of both textile and surgical instruments sterilization, which supported sales and margins of Italian perimeter.

• Relevant organic growth of Brazilian perimeter in 1H 2018.
• New acquisitions accounted for +4.0% in 1H 2018 Revenues growth.
• Transaction done in 2018 put the basis for future results improvements both in terms of sales and margins.
• Laundry business in Italy registered a slow down (in line with communicated forecasts).
• In 1H 2018 significant FX effect connected with consolidation of Brazilian operations.

CONSOLIDATED ECONOMICS RESULTS

EBITDA % EBIT %

CONSOLIDATED ECONOMICS RESULTS

Servizi Italia aims at increasing market diversification in the future.

Consolidation of Brazilian and Turkish market is affected by FX changes.

Equity consololidated businesses are not included in these results.

Margins in Brazil are expected to grow in short term.

17

CONSOLIDATED FINANCIAL RESULTS

'000 Euro	30 6 2017	31 12 2017	30 6 2018
Operating working capital net	10 742	10 934	8 823
Other short-term assets/ liabilities	-6 260	-12 000	-9 792
Net working capital	4 482	-1 066	-969	Medium Term
Fixed assets – Medium/ Long term provisions	211 806	218 353	218 026
Invested capital	216 288	217 287	217 057
Shareholders' Equity (B)	138 894	141 639	136 247
Net financial debt (A)	77 394	75 648	80 810	Short term
Invested capital	216 288	217 287	217 057
Gearing (A/ A+B)	0 36x ,	0 35x ,	0 37x ,
Debt/ Equity (A/ B)	0 56x ,	0 53x ,	0 59x ,

CREDIT LINES (30.6.2018)

Operational investments and acquisitions of Servizi Italia are conducted with specific focus on keeping a balanced and healthy debt structure.

NET DEBT HISTORICAL TREND

CASHFLOW GENERATION -50

Even in presence of a capital intensive business, Servizi Italia is able to generate important positive cashlows from its operative activity. During the last few years, the management decided to invest its resources into structural investments, for consolidating its leadership position and for a constant growth and improvement of Group perfomance. -8 ,² -1,8 -15 ,5 -50 20 0 6 A 20 0 7A 20 0 8A 20 0 9 A 20 10 A 20 11A 20 12A 20 13A 20 14 A 20 15A 20 16 A 20 0 6 A 20 0 7A 20 0 8A 20 0 9 A 20 10 A 20 11A 20 12A 20 13A 20 14 A 20 15A 20 16 A Flussi d i funzio na m e nto c um ula ti +17,5 +18 ,⁸ +17,1 +18 ,⁷ +2 ⁴ ,⁵ +11,0 +11,4 +13 ,⁰ +2 ⁰ ,⁴ +9 ,2 +11,0 0 +9 ,2 +11,0 -8 ,² -1,8 -4 ,⁶ -8 ,⁵ -4 ,⁴ 0

Net of operating investments, Servizi Italia generated cash over Euro 210 million from 2006 to 2017. Flussi d i funzio na m e nto c um ula ti

STOCK EXCHANGE – MAIN DETAILS

Share Capital	31 809 451
Share Price	3 60 ,
Capitalization Market ('000)	117 695

Details shares at on as	(euro) 19 10 2018	Analyst coverage		Reccomend	(euro) TP	Date
Share Capital	31 809 451	SIM Intermonte		Outperform	50 7 ,	Aug 18 7 - -
Share Price	3 60 ,	MidCap Partners		Buy	6 70 ,	Sep 6 18 - -
Capitalization Market ('000)	117 695
		0 30 ,
SHAREHOLDING	STRUCTURE	0 25 ,		0 25 ,
Others; 558% 24 , Coopservice 59 383% ; , Steris Corp 5 903% , Kabouter Mgmt .; 156% 10	0 20 ,	0 18 , 0 16 0 16 , ,	0	0 16 0 15 0 , 14 ,	0 17 , 15 ,
	0 15 , 0 10 ,		0 13 , 0 11 ,	,
	0 05 , .;
	0 00 ,	2007 2008 2009	2010 2011 2012	2013 2014 2015	2016 2017
	,

Average payout ratio of last 5 years equal to 39.0%. Average dividend yield of last 5 years equal to 3.3%. 20

DISCLAIMER

This presentation has been prepared by Servizi Italia S.p.A. ("Servizi Italia" or the "Company") and must be read in conjunction with its oral presentation.

The information contained in this presentation does not purport to be comprehensive. Neither Servizi Italia S.p.A. nor any of its officers, employees, advisers or agents accepts any responsibility for/or makes any representation or warranty, express or implied, as to the truthfulness, accuracy or completeness of the information contained in this presentation or any other information relating to Servizi Italia S.p.A., its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, transmitted or otherwise made available.

The information contained in this presentation must be treated as highly confidential and cannot be distributed without the expressed written consent of Servizi Italia S.p.A.

This document is confidential and is being provided to you solely for your information and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. Neither this document nor any part or copy of it may be taken or transmitted into the United States (US) or distributed, directly or indirectly, in the US or to any "US person", as that term is defined in the US Securities Act of 1933, as amended (the "Securities Act"). Neither this document nor any part or copy of it may be taken or transmitted into Australia, Canada or Japan or to any resident thereof, or distributed directly or indirectly in Australia, Canada or Japan or to any resident thereof. Any failure to comply with this restriction may constitute a violation of US, Australian, Canadian or Japanese securities laws. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This document does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or any other material discussed at the presentation, or on its completeness, accuracy or fairness.

The information in this document and any other material discussed at the presentation are provided as at the date of this presentation and is subject to completion and change without notice.

By attending the presentation you agree to be bound by the foregoing terms and any provided personal details will be treated according to terms and conditions indicated in the Potential Investors Privacy Policy available on Company's website, Privacy section.

Servizi Italia S.p.A.

Via S. Pietro, 59/b 43019 Castellina di Soragna (PR) Italy Tel.+39 0524 598511 - Fax+39 0524 598232 Share capital: Euro 31,809,451 fully paid-up Founded: 1986 Tax ID Number and Parma Business Registry Code: 08531760158 Market: MTA – STAR segment

Sector: Industrial ISIN code for ordinary shares: IT 0003814537 Reuters: SRI.MI --- Bloomberg: SRI IM Specialist: Intermonte SIM Investor Relations Department: Giovanni Manti (IRM), Luigi Innocenti Email: investor@si-servizitalia.com web site: www.si-servizitalia.com