Servizi Italia

Investor Presentation • Oct 23, 2019

www.servizitaliagroup.com

STAR Conference, London

BUSINESS OVERVIEW – Today…

WASH-HIRE

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

Based on 2018 Consolidated Revenues.

STERILIZATION

sterilization processes.

TEXTILE STERILIZATION

drapes. Accessory parts made of

disposablematerial.

BUSINESS OVERVIEW – …and tomorrow WASH-HIRE Washing and rental of flat linen and uniforms as well as antidecubitus systems and management of guests' laundry. In addition to the presence consolidation in markets where it is currently active, Servizi Italia considers as strategically important to diversify its range of services, broadening its activities. Supply, hire, cleaning and traceability of workwear and personal protective equipment

WASH-HIRE

Homecare

TEXTILE STERILIZATION Workwear

(PPE). Hotel & Restaurants Washing and rental of flat linen for hotels, restaurants and catering service, as well as uniforms for personnel and staff.

STERILIZATION

Design, installation and renovation of sterilisation units. Solutions for the design and construction of Operating Clinical Engineering Services for the validation and systematic control of sterilisation processes, equipment calibration and validation of surgical equipment sanitising systems.

OTHER

Departments. O.T design & construction «DIVERSIFYING, IN ITSELF, IS NEITHER GOOD NOR BAD; WHAT MATTERS IS WHETHER A COMPANY CAN ADD VALUE.»

GLOBAL PRESENCE

GROUP EVOLUTION

1986: Foundation of Servizi Italia, active in laundry sector.

2002: Coopservice acquires 100%of SI share capital.

New perspectives

Start of sterilization activities.

2007: IPO at Milan Stock Exchange. Presentation to the

international financial

Transformation into a multiservice company. 2012: Acquisition of the first laundry in Brazil (other transactions in 2013 and 2015). 2014: Start of sterilization business in Turkey. 1986 - 2002 2006 - 2007 2008 - 2011 The early days

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. Growth in Italy

International development

community. Acquisitions in Italy in laundry industry. Development of sterilization business. STAR qualification at Borsa Italiana.

Consolidation of the existing markets: Acquisitions in laundry industry in Italy (2016) and Albania (2018).

Expansion plans in Brazil. Diversification in new business lines: Acquisition of Steritek (2017), start of non-healthcare laundry business (hotel and workwear) and acquisition of Wash Service for entering homecare & nursing homesmarket (2019). New Markets: Sterilization activity in Morocco (2017) and Joint Venture in Asia (constitution of idsMED Servizi Plus in 2018). 2012 - 2015 2016 - 2019 Consolidation and diversification

DEVELOPMENT PATH

mln

Euro

STRENGHTS

BUSINESS GROWTH STRATEGY

ITALY

• -
• Italian Wash-hire Healthcare market turnover: Euro 765 mln • Highest International quality standards • SI's customers are main Public hospitals and Healthcare Institutions
• Outsourcing rate is high in laundry market but still low in sterilization area
• Undisputed market leaderin 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
• 49.4% Full range of services and customizations Constant search and identification of growing and diversification strategies in order to keep and to improve margins

BRAZIL

• Wash-hire potential market is estimated in Reais 840 mln
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  -
• 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 Primary player: 1st player in Sao Paulo, 2nd 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 partners Rental model improved successfully
• FULLY
  -

TURKEY

• 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
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  -
• Main player of both laundry (Ankateks/Ergulteks) 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

INDIA

• 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 • Over 195,000 healthcare facilities throughout India • Low outsourcing rate Business developed greenfield and first volumes started in Oct-2015 Main playerin Healthcare laundry business in India Technologically advanced laundry plant (Delhi area) Recognized by the market as high quality provider Volumes steadily increasing High capacity plant(45 tons/day vs 28 tons/day currently under use)
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  -

Market overview

F U L L Y U S E E X I S T I N G P L A N T C A P A C I T Y I N C R E A S E L O C A L Q U A L I T Y S T A N D A R D S A N D A V E R A G E P R I C E S C O N T R A C T S W I T H F L A G S H I P H O S P I T A L S D E V E L O P M E N T I N N E W A R E A S

ALBANIA

• 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 Unique playerin 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

MOROCCO

• 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 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.

SOUTH-EAST ASIA

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

GROUP VALUES

Servizi Italia's approach is aimed at guaranteeing a high level of service to patients and citizens, as beneficiaries of assistance and health services.

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.

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

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. 15

16

CONSOLIDATED ECONOMICS RESULTS

	CONSOLIDATED ECONOMICS RESULTS
	Servizi Itali a	FY 2017	F Y 2018	1H 2018	1H 2019	1H 2019
	C onsolidate d P&L ( '000 euro)				(	e xcl IFRS S 16 )
	Revenue s % change	252.102	250.908 -0,5%	126.476	131.745 4,2%	131.745 4,2%
	EBITDA	69.829	64.422	33.899	34.068	31.691
	%	27,7%	25,7%	26,8%	25,9%	24,1%
	EBIT	16.376	14.354	8.876	6.217	5.637
	%	6,5%	5,7%	7,0%	4,7%	4,3%
	Net Re sul t	14.365	12.120	7.452	4.804	5.098
	%	5,7%	4,8%	5,9%	3,6%	3,9%
	ECONOMIC AND Surgical instruments sterilization and textile	FINANCIALHIGHLIGHTS sterilization registered	2018 IN a	1H 2019: AND
+	relevant growth in 2018 (+12.3% and +5.4%), supporting of Italian perimeter.	sales and	– margins	Laundry business in	Italy registered a	slow down
+	Relevant organic growth of Brazilian perimeter +6.9% in 1H 2019), due in particular to organic growth 2019 without considering FX effect).	(+7.0% in 2018 and (+12.1% in 1H	– After	a good 2018,	textile sterilization	registered a negative	1H 2019
+	Surgical instruments sterilization business registered margin of 18.6% and the growth of revenues is supporting	in 1H 2019 an group margins	EBIT In areas, – rate	2018 and 1H 2019 connected with of 2017	FX negative consolidation consolidated revenues	impact on both of abroad operations would have	Brazilian and Turkish (with same FX registered a +2.2%
+	New acquisitions accounted on revenues growth for +2.2% in 2018 and +4.1% in 1H 2019			growth)
+	In 1H 2019, despite macroeconomic situation, registering a very positive organic growth (+23.2%, compensated by negative FX effect) and positive margins 26%)	Turkey area is then more (EBIT % equal	still – than to	One-off costs impacted relevantly on 2018 and 1H 2019 in particular due to start-up period of acquisitions longer than expected
+	Transaction done in 2018 and 1H 2019 put the basis improvements both in terms of sales and margins	for future results					17

CONSOLIDATED ECONOMICS RESULTS

CONSOLIDATED ECONOMICS RESULTS

CONSOLIDATED FINANCIAL RESULTS

CONSOLIDATED FINANCIAL RESULTS
'000 Euro	31.12.2017	31.12.2018	1.1.2019*	30.6.2019*
Operating net working capital	10.934	7.957	7.957	10.219
Other short-term assets/liabilities	-12.000	-13.102	-13.102	-11.260
Net working capital	-1.066	-5.145	-5.145	-1.041
Fixed assets – Medium/Long term provis.	218.353	225.578	259.447	267.872
- of which IFRS16	0	0	33.869	36.098
Invested capital	217.287	220.433	254.302	266.831
Shareholders' Equity (B)	141.639	138.238	138.238	136.409
Net financial debt (A)	75.648	82.195	116.064	130.422
- of which IFRS16	0	0	33.869	35.638
Invested capital	217.287	220.433	254.302	266.831
Gearing (A/A+B)	0,35x	0,37x	0,46x	0,49x
Gearing (A/A+B) - Excl. IFRS16	0,35x	0,37x	0,37x	0,41x
Debt/Equity (A/B)	0,53x	0,59x	0,84x	0,96x
Debt/Equity (A/B) - Excl. IFRS16	0,53x	0,59x	0,59x	0,69x
*Starting from 1.1.2019, IFRS16 accounting principle was adopted.
NETDEBT	HISTORICAL	TREND

MLN

EURO

NETDEBT HISTORICAL TREND

Net debt D/E D/EBITDA

0,80x 1,00x 1,20x 1,40x 1,60x 1,80x

CASHFLOW GENERATION

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.

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.

Tel.+39 0524 598511 - Fax+39 0524 598232 Share capital: Euro 31,809,451 fully paid-up Tax ID Number and Parma Business Registry Code: 08531760158 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 Founded: 1986 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.servizitaliagroup.com