Alkemy

Investor Presentation • Mar 27, 2025

FY 2024 RESULTS

27.03.2025

Disclaimer

• This document has been prepared by Alkemy S.p.A. (the "Company") for information purpose only, it contains only summary information and, therefore, it is preliminary in nature. Furthermore it has been drafted without claiming to be exhaustive.
• This presentation ("Presentation") and the information set out herein ("Information") are strictly confidential and, as such, has not been prepared with a view to public disclosure and, except with the prior written consent of the Company, it cannot be used by the recipient for any purpose nor can it be disclosed, copied, recorded, transmitted, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose.
• This Presentation may contain financial information and/or operating data and/or market information regarding business and assets of the Company and its subsidiaries. Certain financial information may not have been audited, reviewed or verified by any independent accounting firm.
• Therefore, the recipient undertakes vis-à-vis the Company (i) to keep secret any information of whatever nature relating to the Company and its affiliates including, without limitation, the fact that the information has been provided, (ii) not to disclose any Information to anyone, (iii) not to make or allow any public announcements or communications concerning the Information and (iv) to use reasonable endeavours to ensure that Information are protected against unauthorized access.
• THIS PRESENTATION AND ANY RELATED ORAL DISCUSSION DO NOT CONSTITUTE AN OFFER TO THE PUBLIC OR AN INVITATION TO SUBSCRIBE FOR, PURCHASE OR OTHERWISE ACQUIRE ANY FINANCIAL PRODUCTS, AS DEFINED UNDER ARTICLE 1, PARAGRAPH 1, LETTER (T) OF LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998, AS AMENDED. Therefore, this document is not an advertisement and in no way constitutes a proposal to execute a contract, an offer or invitation to purchase, subscribe or sell for any securities and neither it or any part of it shall form the basis of or be relied upon in connection with any contract or commitment or investments decision whatsoever. The Company has not prepared and will not prepare any prospectus for the purpose of the initial public offering of securities. Any decision to purchase, subscribe or sell for securities will have to be made independently of this Presentation. Therefore, nothing in this Presentation shall create any binding obligation or liability on the Company and its affiliates and any of their advisors or representatives.
• Likewise, this Presentation is not for distribution in, nor does it constitute an offer of securities for sale in the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful, (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act"). Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person. Any failure to comply with this restriction may constitute a violation of United States securities laws.
• No representation or warranty, express or implied, is or will be given by the Company as to the accuracy, completeness or fairness of any Information provided and, so far as is permitted by law and except in the case of fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for errors, omissions or misstatements, negligent or otherwise, relating thereto. In particular, but without limitation, no representation or warranty, express or implied, is or will be given as to the achievement or reasonableness of, and no reliance may be placed for any purpose on the accuracy or completeness of, any estimates, targets, projections or forecasts and nothing in these materials should be relied upon as a promise or representation as to the future.
• The information and opinions contained in this document are provided as at the date hereof and are subject to change without notice. The recipient will be solely responsible for conducting its own assessment of the information set out in the Presentation. Neither the Company and its affiliates, nor any of their advisors or representatives shall be obliged to furnish or to update any information or to notify or to correct any inaccuracies in any information. Neither the Company and its affiliates, nor any of their advisors or representatives shall have any liability to the recipient or to any of its representatives as a result of the use of or reliance upon the information contained in this document.
• Certain Information may contain forward-looking statements which involve risks and uncertainties and are subject to change. In some cases, these forward-looking statements can be identified by the use of words such as "believe", "anticipate", "estimate", "target", "potential", "expect", "intend", "predict", "project", "could", "should", "may", "will", "plan", "aim", "seek" and similar expressions. The forecasts and forward-looking statements included in this document are necessarily based upon a number of assumptions and estimates that are inherently subject to significant business, operational, economic and competitive uncertainties and contingencies as well as assumptions with respect to future business decisions that are subject to change. By their nature, forward-looking statements involve known and unknown risks and uncertainties, because they relate to events, and depend on circumstances, that may or may not occur in the future. Furthermore, actual results may differ materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside of the Company's control and cannot be estimated in advance, such as the future economic environment and the actions of competitors and others involved on the market. These forward-looking statements speak only as at the date of this Presentation. The Company cautions you that forward looking-statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may differ materially from those made in or suggested by the forward-looking statements contained in this Presentation. In addition, even if the Company's financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements contained in this Presentation, those results or developments may not be indicative of results or developments in future periods. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
• By receiving this Presentation, you acknowledge and agree to be bound by the foregoing terms, conditions, limitations and restrictions.

Alkemy was founded in 2012 with the aim of supporting the top management of large companies in the process of digitizing their business model.

The market in which Alkemy insists is the digital transformation market which today is worth over 6 billion euros in Italy and grows at a rate of about 9% per year.

In this market, Alkemy has developed a differentiated positioning that has allowed it to grow with a CAGR of 40%, to move from the 23 starting resources to a team of over 900 people and a turnover of 115M€ in 2024.

Alkemy has successfully used the M&A lever (10 acquisitions) using the IPO proceeds in less than nine months, and the EBITDA growth of the four acquisitions made in Italy from 2013 to 2021 was up to +500%.

With a new organization and a dedicated Industries & Clients team Alkemy is now focusing on the industrialization and expansion of the business scale.

We help companies to evolve their business in the post-digital scenario

FINANCIAL HIGHLIGHTS

€M	FY 2024	FY 2023
Turnover	115.3	119.2	-3% vs. FY 2023, mostly due to the performance of some > foreign subsidiaries.
Adj. EBITDA	7.9	13.1	-40% vs. FY 2023. EBITDA Adj. margin at 6.9%, -4.1 pps vs. FY > 2023 mainly due to the different sales mix.
Non-recurring costs	(2.7)	(1.2)	+122% vs. FY 2023 due to one-off costs linked to the > voluntary totalitarian tender offer launched by Retex S.p.A. on the Alkemy shares.
EBIT	(12.9)	6.9	EBIT, mainly due to higher depreciation -288% vs. FY 2023 > costs due to the impairment of Goodwill for Euro 12.1 million following the performance of the impairment test.
EBT	(15.0)	4.8	-409% vs. FY 2023 >
Group Net Result	(14.7)	3.5	-517% vs. FY 2023 >
Net Operating Cash Flow	10.6	9.2	+1.4 €M vs. FY 2023 mainly due to NWC dynamics. >
NFP	-25.8	-31.8	€M +6.0 since 31 December 2023 mostly due to decrease in >

put option liabilities and bank loans.

FY REVENUES(€M) – IAS /IFRS

REVENUES

(1)Revenues 2013-14-15-16 are Management estimates and are not audited, following the introductions of IFRS in 2018.

ALKEMY INTERNATIONAL TURNOVER & SPLIT BY INDUSTRY

› FY 2024 revenues at €M 115.3, -3% vs. FY 2023 (€M 119.2). The result is due mostly

› FY 2024 Italian turnover at €M 71.2, -1% vs. €M 72.0 in FY 2023.

- to the performance of some foreign subsidiary.

- subsidiaries.

› International revenues in FY 2024 at €M 44.1, down by 6% vs. €M 47.1 in FY 2023, mainly due to the negative performance of Alkemy Iberia and the Mexican

› Revenues generated by clients in the Entertainment & Lifestyle and Energy & Utilities are 37% of total turnover, followed by Telco & Technology, FSI and Healthcare & Pharma (12%, 11% and 8% of Group turnover respectively).

ALKEMY GROWTH EVOLUTION (€000) – IAS /IFRS

FY ALKEMY Adj. EBITDA(€M) – IAS/IFRS(1) & MARGIN (%)

Adj. EBITDA

EBITDA MARGIN – Adj. EBITDA MARGIN (%) QUARTERLY TREND

› FY 2024 Adj. EBITDA is €M 7.9, -40% compared to FY 2023 of €M 13.1.

› EBITDA Adj. Margin¹ is 6.9% in FY 2024, -4.1 pps compared to FY 2023 (11.0%), mainly due to the different sales mix.

CASH FLOW

FY 2024 Cash Flow generation - (€000)

• › FY 2024 Gross Cash Flow at €M 7.2, -39% YoY mainly due to lower net result for the period.
• › FCFO at €M 12.4, equal to 157% Adj. EBITDA, +10% compared to FY 2023 due to higher cash adjustments and net working capital dynamics.
• › Capex +52% compared to FY 2023 and equal to 3% of Revenues.
• › Change in cash over 2024 is €M -1.3.

Net Financial Position Bridge (€M)

NET FINANCIAL POSITION BRIDGE AND DETAILS

9

NET TRADE WORKING CAPITAL DYNAMICS

Net Trade Working Capital over Last 12 Months' Revenues (%)

• Cash generation from Net Trade Working Capital compared to cash absorption of €M -4.9 million in FY 2023, due to payables and receivables dynamics.

• FY 2024 DSO at 107, declining vs. FY 2022 (119); FY 2024 DPO +7.6% vs. FY 2023.

Net Trade Working Capital (€M)

Cash Conversion Cycle Details (days)

› FY 2024 Revenues at €M 115.3, down by 3% compared to €M 119.2 of FY 2023. The decline is mostly related to the performance of some foreign subsidiaries. Italian revenues down by 1% YoY, while foreign turnover declined by 6%, mainly due to the performance recorded by Alkemy Iberia and the Mexican subsidiaries, that more than offset the performance recorded by all other foreign companies.

› Adj. Operative costs increased (89% of total revenues, flat compared to FY 2023). Adj. services costs increased by 2% YoY, and increased the impact on Revenues by 2.3 pps. Personnel costs increased incidence on revenues by 1.8 pps compared to FY 2023, with an average FTE for the period that slightly declines from 936 in 2023 to 920 in 2024.

› FY 2024 Adj. EBITDA at €M 7.9 -40% compared to €M 13.1 in FY 2023, with the Adj. EBITDA margin at 6.9% (down from the 11.0% of FY 2023).

› Non-recurrent operative costs increased by 122% due to one-off costs mostly related to the Voluntary Totalitarian Tender offer promoted by Retex S.p.A. – società Benefit on the Alkemy shares.

› FY 2024 EBIT is negative and equal to €M -12.9 compared to €M 6.9 in FY 2023, mostly due to higher D&A linked to the impairment of goodwill (€M -

› FY 2024 EBT at €M -15.0, -409% compared to €M 4.8 in FY 2023.

-

-

- 12.1).

• FY 2023.

› Group Net Loss for the period is €M -14.7, -517% vs a Net Profit of €M 3.5 in

FY 2024 P&L – IAS/IFRS

Consolidated Profit & Loss

Profit and Loss (€000) - IAS/IFRS	FY 2023	FY 2024
Revenues	119,158	115,336
Service costs, consum. & goods	(52,566)	(54,080)
- of which non-recurrent	(39)	(528)
Personnel	(54,674)	(56,060)
- of which non-recurrent	(1,187)	(2,198)
Adj. EBITDA	13,144	7,922
% Revenues	11.0%	6.9%
EBITDA	11,918	5,196
% Revenues	10.0%	4.5%
D&A	(4,189)	(4,484)
Bad debts/ claims/ provisions	(839)	(13,655)
EBIT	6,890	(12,943)
% Revenues	5.8%	-11.2%
Other financial items	-	-
Financial charges	(2,051)	(2,027)
EBT	4,839	(14,970)
Taxes	(1,304)	238
% Tax rate	26.9%	1.6%
Net Profit (Loss)	3,535	(14,732)
% Revenues	3.0%	-12.8%
o/w Minorities	72	27
o/w Group Net Profit (Loss)	3,463	(14,759)

FY 2024 BALANCE SHEET – IAS/ IFRS

› Total Capital Invested at €M 59.0 (€M 79.5 in FY 2023) consisted of approx. € 22.0 million of Net Trade Working Capital (€M 29.7 FY 2023), €M 56.4 of fixed assets (€M 67.5 FY 2023) of which €M 42.8 of Goodwill (€M 54.9 in FY 2023) and €M 5.4 of IFRS 16 rights of use (€M 6.3 in FY 2023).

› Shareholders' equity decreased in the period by €M 14.6 since 31 Dec. 2023 (-31%), mainly due to the net loss of the period (€M -14.7).

-

• › Net Financial Position at December 31 equivalents (€M -1.3).

st , 2024, negative by €M -25.8 (ante-IFRS 16 at €M -20.2) increasing by €M +6.0 compared to FY 2023. The variation is mainly due to: (i) decrease in put options liabilities and earnout linked to acquisitions (€M +3.9); (ii) IFRS 16 impact(€M +0.9); (iii) decrease in bank loans (€M +2.5); (iv) decrease in cash and cash

Consolidated Balance Sheet

Balance Sheet (€000) - IAS/IFRS	FY 2023	FY 2024
Tangible assets	8,213	7,270
o/w rights of use (IFRS16)	6,274	5,406
Intangible assets	2,079	2,984
Goodwill	54,871	42,766
Financial assets	2,363	3,398
Fixed Assets	67,526	56,418
Inventories	-	-
Trade Receivables	45,929	39,939
Trade Payables	(16,196)	(17,954)
Net Trade Working Capital	29,733	21,985
Other Current Assets	4,749	4,079
Other Current Liabilities	(16,042)	(16,359)
Employees' leaving entitlement	(6,477)	(7,125)
Total Capital Invested	79,489	58,998
Total Equity	47,716	33,157
o/w Group Equity	47,243	32,657
o/w Minorities	473	500
Cash & current financial assets	(12,115)	(10,684)
Bank Debts	23,627	21,080
Put Option Liabilities	13,755	9,821
Net Financial Position ex-IFRS 16	25,267	20,217
Other Financial Debts (IFRS16)	6,506	5,624
Net Debt (Cash)	31,773	25,841
Total Funds	79,489	58,998

FY 2024 CASH FLOW GENERATION – IAS/IFRS

› FY 2024 Gross Cash Flow at €M 7.2, compared to €M 11.9 in FY 2023. The increase is mostly due to the net loss for the period.

› FY 2024 Net Operating cash flow at €M 10.6 compared to €M 9.2 of FY 2023. The increase of €M 1.4 is mainly related to higher non-cash adjustments and Net Working Capital dynamics.

› Ordinary Capex of the period is €M 3.0 compared to €M 2.0 of FY 2023. FY 2024 Free Cash Flow is €M 7.6, compared to €M 7.4 in FY 2023.

› Total change in cash for the period was €M -1.3 compared to €M +2.9 in

-

• FY 2023.

Consolidated Cash Flow

Cash Flow Statement (€000) - IAS/IFRS	FY 2023	FY 2024
Net Profit (Loss)	3,535	(14,732)
Adjustments (cash tax, interest and other)	3,354	1,789
Non-cash items	4,994	20,188
Gross Cash Flow	11,883	7,245
Change in trade receivables	(5,001)	4,558
Change in trade payables	76	1,682
Total change in NTWC	(4,925)	6,240
Total change in other asset/liabilities	4,374	(1,065)
Operating Cash Flow	11,332	12,420
Net financial charges paid	(838)	(1,163)
Net tax paid	(1,289)	(686)
Net Operating Cash Flow	9,205	10,571
Capex	(1,977)	(3,013)
Other non-current assets	208	81
Free Cash Flow	7,436	7,639
Change in treasury shares	(120)	(43)
Dividends to minorities	(1,283)	-
Change in bank & fin. Debts	1,560	(2,395)
IFRS 16 effect	(1,993)	(2,331)
Changes in Equity	-	-
Changes on other financial assets	-	-
Change in put/options	(2,686)	(4,215)
Change in Cash	2,914	(1,345)
Initial Cash	9,115	12,029
Final Cash	12,029	10,684

OUTLOOK

• The outlook for 2025 will still be influenced by exogenous factors such as the war in Ukraine, the outbreak of the Israeli-Palestinian conflict, inflation and monetary policy and the foreign policy of the United States. This situation of widespread uncertainty has significant impacts on companies' expectations which are not always positive.

• At present, with the current visibility on the evolution of the business over the next few months, we expect a slight organic growth regarding both Revenues and Adj. EBITDA.

• The positive impacts from the new organizational structure strengthened by the hiring of new senior managers, and of the "One Alkemy" project will be shown starting from H2 2025.

A PUBLIC COMPANY LISTED ON EURONEXT STAR MILAN

A SOLID CORPORATE GOVERNANCE

BOARD OF DIRECTORS BOARD OF STATUTORY AUDITORS

Chairman	Barnaba Ravanne
Chief Executive Officer	Duccio Vitali
Director	Marco Valcamonica
Independent Director	Alessandra Piersimoni
Independent Director	Lisa Vascellari Dal Fiol
Independent Director	Maria Gimigliano
Independent Director	Elvina Finzi
Director	Gerardo Gabrielli
Independent Director	Vincenzo Pompa

Chairman	Gabriele Gualeni
Standing Auditor	Mauro Dario Bontempelli
Standing Auditor	Daniela Bruno
Alternate Auditor	Marco Garrone
Alternate Auditor	Mara Sartori

• The Board of Directors was appointed on December 3rd, 2024, whereas the Board of Statutory Auditors and the Independent Audit Firm were appointed by the Shareholders' Meeting on April 26, 2022.

Alkemy innovation_enabler Via San Gregorio 34 20124 Milano, Italy Tel: +39 02 92894 1 - Fax: +39 02 92894 500 info@alkemy.com Alkemy enabling evolution

INVESTOR RELATIONS ir@alkemy.com