Alkemy — Environmental & Social Information 2021

Mar 31, 2021

Consolidated Non-Financial Statement in accordance with Italian Legislative Decree no. 254/2016

Letter to stakeholders 3
Methodological note 5
Group profile…7
Mission and values 10
The business segments 11
Business areas 12
The supply chain 14
Governance and compliance 15
Corporate governance structure 15
Ethics and integrity 19
Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/01 19
Code of Ethics 20
Anti-corruption 20
Risk analysis and management 22
Customer centricity 28
Sustainability for Alkemy 30
Economic and technical responsibility 33
Economic-financial results 33
Tax transparency 34
Innovation and R&D 35
Cybersecurity and data protection 43
Environmental responsibility 45
Social responsibility 48
Diversity and inclusion 50
Attraction and gaining the loyalty of talent 52
Staff training and development 55
Occupational health and safety 58
Management of the COVID-19 emergency 60
GRI Content Index 62
Independent Auditors' Report 69	2

Letter to stakeholders

Stakeholders,

Once again, this year it gives us great pleasure to share the consolidated non-financial statement with you for 2020.

As we are all only too well aware, through direct experience, 2020 has been an intense year, marked by a severe pandemic that has brought with it continuous changes in the health, social and economic scenarios in a way and over time frames that were entirely unpredictable. And, in fact, 2020 has proven to us that Alkemy's strategy, focussed on our people and customers is the right way to go.

2020 has taught us that the digital transition is no longer merely necessary but is actually in progress, inevitable and sometimes dramatically urgent. Throughout the year, on the strength of our new operative model, we have stood alongside our customers, adapting our offer and services to fit with the difficulties of the moment. If on the one hand, the pandemic has speeded up the evolution of the business model of all companies, on the other it has confirmed and indeed strengthened the central role Alkemy assigns to our customers, showing us exactly how we want Alkemy to be in the future.

The Alkemy structure and values and the services offered, just as planned last year, have been confirmed and gained reinforced strength amidst the adversities of a pandemic that has upturned the world as we knew it. In order to stand alongside our customers and allow them to address the changes in the market, we have changed and evolved the offer supply structure yet further. We have never left our customers alone and in thus doing, the relationship has become yet stronger, leading to even closer collaboration.

And all this has only been possible thanks to our people. Alkemy is a context made up of multiple talents, characterised by completely different experiences and skills, but which complement each other. And it is in the alchemy of talents that we find our most valuable resource. Diversity is an integral part of our DNA. In addition to promoting it each and every day within our organisation throughout the entire process of our Alkemy Employee Experience (AEX), this year, while we were all locked into our homes, we chose to spread a strong message of love and inclusion, as official media partners of Milan Pride, with the campaign "Let love come out".

Our people are for us both the primary investment and asset on which our entire business model is hinged. This is why, particularly during the most difficult months of the pandemic, we have protected our people, guaranteeing them the chance to work from home, with all the tools necessary and in complete safety. No temporary lay-off funds were used, because here in Alkemy, we recognise the value of our people and have chosen to leave no one behind. We have provided them with psychological support and all the flexibility necessary to cope with such a difficult time as that we have experienced and are continuing to experience, also taking into account how young our people are.

The care and protection that we have dedicated to our people have strengthened the cohesion of our community and the sense of belonging to Alkemy. Each of us has worked with even more commitment and devotion. Driven by our key values of Excellence, Passion, Integrity and Concreteness, we have achieved greater efficiency in managing our business, increasing business profitability sharply, without forgoing the quality of our services and the continuous search for innovation.

For us, 2020 was a year of great transformation and consolidation, which took concrete form in the definition of a new organisation and the structuring of a new business plan: our people and our customers are two pillars on which we have built Alkemy's success and on which we rely to build the recovery and future growth.

Duccio Vitali,

Chief Executive Officer of Alkemy S.p.A.

Methodological note

Reporting standards

The Alkemy Group (hereinafter also the "Group") Consolidated Non-Financial Statement (hereinafter also referred to as the "Non-Financial Statement" or the "NFS"), prepared in accordance with Articles 3 and 4 of Italian Legislative Decree no. 254/2016 (hereinafter also the "Decree"), reports, to the extent necessary to ensuring the full understanding of the business activity, its performance, results and the impact it has on topics considered as relevant and envisaged by Art. 3 of Italian Legislative Decree no. 254/2016 with reference to FY 2020 (from 1 January to 31 December).

This Non-Financial Statement, which is published once a year, has been prepared with a selection of the "GRI Sustainability Reporting Standards" (hereinafter the "GRI Standards"), published in 2016 by the Global Reporting Initiative (GRI), according to the "GRI Referenced" approach. In regard to the specific standards GRI 403 (Occupational health and safety), the latest version of the GRI Standards has been adopted, published in 2018. Finally, in order to facilitate the reader in finding information in the NFS, a GRI Content Index is given on pages 58-64.

The contents of the document, which reflect the principle of materiality or relevance, an element envisaged by the reference legislation and characterising the GRI Standards, refers to the material topics for the Group and its stakeholders.

In order to allow for the comparison of data over time and assess the performance of the Group's business, a comparison with the previous year has been offered. The restatements of previously published comparative data, where present, are clearly indicated as such. Finally, in order to ensure a correct representation of performance and guarantee the reliability of the data, the use of estimates was avoided as far as possible and, where present, such estimates are duly reported.

With reference to the changes made in 2020 as compared with the previous year, we note that on 22 December 2020, the Board of Directors of Alkemy S.p.A. resolved, by notary deed, the merger by acquisition of the full subsidiary BizUp S.r.l. On that same date, the transaction was also approved by the shareholders' meeting of the acquired company.

The merger comes as part of the most extensive Group corporate reorganisation process, aimed at simplifying the structure and further optimising the current commercial, operative and equity synergies. The transaction was completed on 28 December 2020 with effect from 31 December 2020 and with accounting and tax effect backdated to 01 January 2020.

Reporting boundary

The reporting boundary relates to the parent Alkemy S.p.A. and the subsidiaries consolidated on a line-by-line basis as of 31 December 2020, as shown on page 8 of this Statement.

The following exceptions are noted to the reporting boundary:

Information on energy consumption (GRI 302-1) and CO2 emissions (GRI 305-1 and GRI 305-2) regard only the Group's Italian companies, insofar as the companies Alkemy Play S.r.l., Alkemy Play D.o.o., Alkemy SEE D.o.o., Alkemy Digital Hub D.o.o., Alkemy USA Inc., Alkemy Iberia S.L. and Ois Marketing Digital S.A. are not significant in terms of consumption. Moreover, the data collection and monitoring systems in place at the remaining foreign countries do not, to date, allow for the timely collection of the information necessary for reporting on the indicators.

Please note that with reference to the information envisaged by Art. 3, paragraph 3 of Italian Legislative Decree no. 254/2016, in view of the Group's business segment, the following topics were not considered relevant in offering a representation of the corporate business:

• other atmospheric polluting emissions apart from greenhouse gas emissions;
• water consumption;
• human rights.

As regards the topic of human rights, despite the fact that they are not material for the context in which the Group operates, is overseen by the Code of Ethics introduced together with the Model 231, and aimed at recognising and respecting personal dignity, the private sphere and the rights of all employees.

For more information, please refer to the document "Code of Ethics" published on the company website https://www.alkemy.com/governance/.

Approval and verification

The Statement was submitted for approval by the Alkemy S.p.A. Board of Directors on 22 March 2021 and, moreover, was subjected to a limited audit ("limited assurance engagement" according to the criteria laid down by the standard ISAE 3000 Revised) by Deloitte & Touche S.p.A., in accordance with the provisions of Art. 3, paragraph 10 of Italian Legislative Decree no. 254/2016. The audit report is attached to this document.

Group profile

Established in 2012, the Alkemy Group operates to improve the market position and competitiveness of its customers, stimulating the evolution of the business model consistently with technological innovation and consumer conduct. Thanks to the competences of its people, the Group contributes towards the evolution of its customers' business, staying one step ahead of the transformations of the post-digital scenario.

The Group comprises the Parent Alkemy S.p.A., with registered office at Via San Gregorio 34 in Milan, and 12 direct or indirect subsidiaries in Italy, Serbia, Spain and Mexico.

In accordance with Articles 2497 et seq. of the Italian Civil Code, Alkemy S.p.a. manages and coordinates the companies of the Group and its direct and indirect subsidiaries, exercising control over such in accordance with Art. 2359 of the Italian Civil Code and consolidating their financial statements.

At 31 December 2020, the scope of consolidation was as follows:

Company name	% held	Operating offices
Alkemy S.p.A.	-	Italy - Milan, Rome, Turin, Cagliari, Rende
		(CS)
Direct subsidiaries:
Alkemy Play S.r.l.	51%	Italy - Milan
Alkemy USA Inc.	100%	USA - New York
Alkemy SEE D.o.o.	70%	Serbia - Belgrade
Alkemy Iberia S.l.	65%	Spain - Madrid
Nunatac S.r.l.	70%	Italy - Milan
Ontwice Interactive Service S.l.	80%	Spain - Madrid

Indirect subsidiaries:
Alkemy Play D.o.o.	51%	Serbia - Belgrade
Alkemy Digital Hub D.o.o.	70%	Serbia - Belgrade
Kreativa New Formula D.o.o.	36%	Serbia - Belgrade
Ontwice Interactive Service S.l.	80%	Mexico - Mexico City
Mexico City
Ontwice Interactive Service Digital	80%	Mexico - Mexico City
S.l. Mexico City
Design Group Italia S.r.l.	20%	Italy - Milan
		Iceland - Reykjavik
		USA - New York, Palo Alto

Through a sought-after diversification of the competences of its resources and the synergic manner in which they work on the individual projects, the Group is able to propose an integrated range of multiple services offering customised solutions to suit the needs of the various types of customers (industrial, financial and commercial). More specifically, the extensive portfolio of customers allows for a major diversification of the sectors serviced, such as, for example, consumer services, media, telecommunications and technology, fast-moving consumer goods, banks and financial services, utilities and fashion.

Thanks to a team of 535 employees, the Alkemy Group can integrate competences into the areas of Strategy, Communication, Design, Performance, Technology and Insights & Analytics, with a range designed for the post-digital context, which covers the whole value chain from strategy to implementation.

ALKEMY GROUP HISTORY

Mission and values

The Group undertakes to assist companies through the post-digital scenario, with the aim of significantly contributing towards the evolution of their business. This context includes the values referred to using the acronym "EPIC":

The Group's mission has shifted from the original "Digital Enabler" to "Enabling Evolution", as explained in the manifesto below.

BOX - "Enabling Evolution" manifesto

In 2012, while digital was changing the world, Italian businesses found a partner to change the way they do business. A partner that previously did not exist: the very first digital enabler. Today, a great many people promise digital transformation. But, in the meantime, the world has changed. Digital, which originally looked to be a point of arrival is instead today a new point

of departure. It is time to make transformation the new normal. It is time for an evolution. Growing over the years, we have understood that evolution is the natural state of being Alkemy. The forma mentis that has driven us to improve, day after day. And with us, the modus operandi of our customers. We are incapable of standing still. We are now formalising our changes and evolving. We have enabled digital for 7 years, successfully integrating very different competences. But transformation knows no peace and transforming businesses has transformed us too. Thus, we have gone from 30 to 700 people, from 1 to 4 countries and extended the spectrum of our skills and competences. The acquisitions made from 2013 to date and the strong organic growth enjoyed, have led us to list on the AIM in 2017 and in the STAR segment of the MTA in 2019. But our name, our culture and our nature remain Alkemy, because alchemy is precisely our way of acting. The capacity to transform what is inert into what is noble, thanks to a union of competences that are worth more than the sum of the individual elements. We changed digital when digital was the great innovation. Now we are in and beyond digital. Thus, from Alkemy digital enabler, our mission has been transformed. Starting today, we now enable the evolution of our customers' business. Starting today, our mission is called "enabling evolution". A new offer for the post-digital scenario, designed to provoke real reactions within the businesses and through the market and stimulate the

efficiency of business, innovation, growth and profit through 5 different journeys: Business Model Transformation, Business Acceleration, Brand Experience, Customer Value Management and Transformation-as-a-Service. We need to be today what is required tomorrow. Adapting the market, anticipating the risks and transforming them into opportunities before needing to react when it is too late. Because evolution waits for no one. This is a certainty as strong as 3.6 billion years of life.

The business segments

The main market of the Alkemy Group is the Italian market, in addition to the foreign markets of the Balkans area (Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Albania, Macedonia), those of the Iberian peninsula (Argentina, Brazil, Colombia and Mexico). The main markets are served through 11 subsidiaries and 1 associate (in addition to the Parent Alkemy S.p.A.) present directly in 4 different countries.

In 2020, the Alkemy Group business was structured into 5 new lines of offer to respond to the changes in progress on the market:

• 1. Business Model Transformation (BMT): to increase the business and competitive advantage of its customers in a rapidly-changing world, Alkemy combines the experience in consulting with a capacity for brand planning, service and product design skills and state-of-the-art technology to offer concrete, omnichannel solutions;
• 1. Business Acceleration (BA): from media planning to marketing automation tools, from CRM platforms through to solutions based on artificial intelligence, Alkemy

exploits data analysis to assure an in-depth understanding of the various audience segments, increase business performance, reduce churn and explore new upselling opportunities for its customers.

• 1. Brand Experience (BX): from the brand strategy to campaign design, brand behaviour monitoring and brand intelligence, Alkemy flanks its customers to construct, evolve, track and maintain the consistence brand both on- and off-line, through various touchpoints and throughout the customer journey;
• 1. Customer Value Management (CVM): Alkemy flanks its customers to create measurable value from data. From the strategy to campaign delivery, Alkemy manages prospects and leads in a single stream to design a unique customer experience both on- and off-line, able to maximise the customer life cycle;
• 1. Transformation-as-a-service (Xaas): Alkemy allows its customers to use tools, skills and systems as services, making available state-of-the-art solutions from digital skills to R&I, data management and platform maintenance, with a view to offering the utmost flexibility in selecting solutions and expertise in trial and pilot mode.

The figure below offers a structured summary of the model adopted by the Group in developing and implementing the offer

Business areas

In February 2020, in response to the continuous evolutions of the market on which the Company operates and to anticipate the needs of its customers, having laid the basis, in 2019, Alkemy

modified its mission from "digital enabling" to "enabling evolution". In other words, the Company is now focussed in enabling the evolution of its customers' business, with a new offer for a post-digital scenario, designed to stimulate the relevant progress and update. This different positioning entailed, on an organisational level, a different breakdown of operating activities with the identification of five business units, as compared with the 6 previously identified, which are matched with an equal number of Strategic Business Units, in some cases corresponding to the relative companies:

Consulting and Performance Marketing: the business unit comprises professionals with solid experience in strategic consultancy. It analyses, designs and quantitatively assesses (business case and business plan) innovative solutions aiming to transfer the customer's business model thanks to the use of the digital and omnichannel leverages, liaising closely with the CEOs and Executive Managers to define innovative, alternative strategies by which to achieve significant results in the long-term. With the aim of speeding up on-line performance, the business unit also offers Alkemy customers the know-how and most innovative tools to promote its brands and products on-line. It thus manages all planning and procurement activities for its customers on the main digital media, search engines and social media, determining the investments needed to strengthen and improve consumer perception of the brands and products and speeding up sales on proprietary and third party e-commerce channels, thereby overcoming conventional marketing approaches;

Tech: this is Alkemy's technological soul and it is specialised in the design, development and operation of technologies for the digital evolution of the B2B and B2C channels, front-end solutions, CRM, CMS, Portals, Apps, etc. The business unit consolidates and strengthens Alkemy's mission, reinforcing technological competences and the capacity to oversee one of the areas enjoying greatest growth and development: that of Digital Transformation;

Data & Analytics: the business unit is focussed on offering concrete support to businesses in order to improve their business performance through the analysis of data available (both that of CRM or of other internal systems, and data coming from all actions on the digital world) and the implementation of analytics models. The techniques used for data analysis range from traditional statistical analysis through to Advanced Analytics & Machine Learning, Real Time Next Best Action, Digital Customer Intelligence, Campaign Plan Optimisation, Data Environment Design, Implementation and Management

Brand Experience: this business unit plans, designs and realises the enterprises' brand experience, in a fully integrated manner, putting the end consumer right at the heart through digital and physical touchpoints and more "traditional" forms of communication, with the ultimate aim of generating value both for our customer and the end consumer. Developing and transforming the touchpoints into a unique experience, which communicates consistently a strong, innovative, distinctive brand, Alkemy offers its services as an essential partner. The BU assists the customer in preparing and structuring brand strategies and creativity, advertising campaigns, products or services for commercial businesses and, in general, communication with consumers, including through the management of the corporate digitisation process using a BPO (Business Process Outsourcing) model for the digital processes.

Product & Space Design: this is Alkemy's design business unit based on Design Thinking, focussed on the creation of value through experiential innovation. The unit designs and develops physical and digital products that impact everyday life but also destinations and spaces in which people and brands can interact and share significant experiences in an omnichannel logic. Analysing our customers' businesses, including their processes, culture and resources, we help them release commercial opportunities and innovate the end customer experience.

The various business areas are involved in different ways according to the various projects and specific customer needs.

The supply chain

The Alkemy Group goes about its business through internet platforms and websites of subjects external to the Group, with which it stipulates, as applicable, suitable software licence and service contracts, according to texts including standard provisions for such contracts.

Below are the main categories of suppliers used by the Group:

• suppliers of digital and non-digital media spaces, used by the Group to procure advertising spaces;
• suppliers of technical assistance and digital IT services, such as cloud and software;
• suppliers of physical products, such as goods for e-commerce and consumable materials;
• suppliers of logistics services;
• suppliers of communication, creativity, editorial, graphic and managerial consultancy services.

With reference to the suppliers of media spaces, commercial contracts include "general conditions of supply" prepared by the supplier, to which reference is made when purchasing digital media directly from internet platforms.

With reference to suppliers of digital IT services, such as cloud and software, the procedure for establishing the commercial relationship starts with a "framework" offer that generally lasts for one year. This type of contract generally includes a faculty of withdrawal with 15 days' notice and, in some cases, a period of "flanking" involving outgoing technical consultants and new subjects that the Company will assign for carrying out the activities planned.

With reference to the other points, the Group does not generally prepare framework agreements with suppliers but rather, save where specific, continuous services are supplied, mainly stipulates contracts for individual orders/projects, negotiating the terms individually, each time.

Governance and compliance

Corporate governance structure

Alkemy S.p.A. has adopted a traditional type governance system. The Shareholders' Meeting, the body in charge of expressing the shareholders' desires, therefore appoints both the Board of Directors and the Board of Auditors.

The Board of Directors, appointed by the Shareholders' Meeting on 25 June 2019, numbers 9 directors, of whom 67% are men and 33% women.

THE MEMBERS OF THE ALKEMY S.P.A. BOARD OF DIRECTORS AT 31 December 2020

MEMBERS	OFFICE	EXECUTIVE (YES/NO)	INDEPENDENT (YES/NO)	OTHER POSITIONS HELD
Alessandro Mattiacci	Chairman	Yes	No
Vittorio Massone1	Deputy Chairman	Yes	No
Duccio Vitali	Chief Executive Officer	Yes	No
Massimo Canturi2	Director	Yes	No
Riccardo Lorenzini	Director	No	No
Giorgia Abeltino	Director	No	Yes	Control and Risks Committee
Giulia Bianchi Frangipane	Director	No	Yes	Control and Risks Committee Remuneration Committee
Andrea Di Camillo	Director	No	Yes	Control and Risks Committee Remuneration Committee
Serenella Sala	Director	No	Yes	Remuneration Committee

¹ The director was coopted by the Board of Directors on 13 February 2020, in lieu of Matteo de Brabant, who had stood down, and appointed Deputy

Chairman. The appointment was approved by the Shareholders' Meeting on 24 April 2020. ² The director was coopted by the Board of Directors on 23 July 2020, in lieu of Francesco Beraldi, who had stood down, and appointed General Manager on 11 September 2020.

	2019		2020
GENDER/AGE BRACKET	<30	30-50	>50	<30	30-50	>50
Man	0	4	2	0	1	5
Woman	0	2	1	0	2	1

BREAKDOWN BY AGE BRACKET AND GENDER OF DIRECTORS AS OF 31 DECEMBER 2020³

In compliance with the recommendations on corporate governance given in the Code of Corporate Governance, the Company's Board of Directors has also established, duly approving their internal operating procedures, the following committees:

• Remuneration Committee: is in charge of duties regarding remuneration, in compliance with the provisions of application criterion 6.C.5 of the Code of Corporate Governance;
• Control and Risks Committee: this performs the duty of competent committee in accordance with the Company's Related Party Transaction Procedure and assists the Board of Directors in assessing and making decisions relating to sustainability.

The Remuneration Committee numbers 3 members, of whom 33% are men and 67% women.

MEMBERS	OFFICE	EXECUTIVE (YES/NO)	INDEPENDENT (YES/NO)	OTHER POSITIONS HELD
Serenella Sala	Chairman	No	Yes	Board of Directors
Giulia Bianchi Frangipane	Member	No	Yes	Board of Directors
Andrea di Camillo	Member	No	Yes	Board of Directors

THE MEMBERS OF THE ALKEMY S.P.A. REMUNERATION COMMITTEE AT 31 December 2020

The Control and Risks Committee also numbers 3 members, of whom 33% are men and 67% are women.

³ As of 31 December 2020, the Remuneration Committee has the same members as the Remuneration Committee at 31 December 2019.

MEMBERS	OFFICE	EXECUTIVE (YES/NO)	INDEPENDENT (YES/NO)	OTHER POSITIONS HELD
Andrea di Camillo	Chairman	No	Yes	Board of Directors
Giorgia Abeltino	Member	No	Yes	Board of Directors
Giulia Bianchi Frangipane	Member	No	Yes	Board of Directors

THE MEMBERS OF THE ALKEMY S.P.A. CONTROL AND RISK COMMITTEE AT 31 DECEMBER 2020⁴

The Alkemy S.p.A. Board of Auditors, appointed by the Shareholders' Meeting on 25 June 2019, shall remain in office for three financial years, i.e. until the date of the meeting called to approve the financial statements for the year ending as of 31 December 2021 and comprises the Chairman, 2 regular auditors and 2 alternate members.

THE MEMBERS OF THE ALKEMY S.P.A. BOARD OF AUDITORS AT 31 DECEMBER 2020⁵

MEMBERS	OFFICE	YEAR OF BIRTH
Mauro Dario Bontempelli	Chairman	1954
Gabriele Gualeni	Regular Auditor	1974
Daniela Bruno	Regular Auditor	1969
Marco Garrone	Alternate Auditor	1963
Mara Sartori	Alternate Auditor	1971

BREAKDOWN BY AGE BRACKET AND GENDER OF THE MEMBERS OF THE BOARD OF AUDITORS AS OF 31 December 2020

	2019		2020
GENDER/AGE BRACKET	<30	30-50	>50	<30	30-50	>50
Man	0	1	2	0	1	2
Woman	0	2	0	0	2	0

⁴ As of 31 December 2020, the Control and Risks Committee has the same members as the Control and Risks Committee at 31 December 2019.

⁵ As of 31 December 2020, the Board of Auditors has the same members as the Board of Auditors at 31 December 2019.

More information about governance is given in the "Report on the Corporate Governance System" and in the "Alkemy S.p.A. Articles of Association", available from the "Corporate Governance" section of the company website www.alkemy.com.

Ethics and integrity

Alkemy S.p.A. has adopted the organisation and management model envisaged by Italian Legislative Decree no. 231/2001 (the "Model 231") with the aim of creating a system of rules to prevent the adoption of unlawful conduct held to be potentially relevant to the application of said legislation. To this end, Alkemy S.p.A. has also established a supervisory body in accordance with Article 6, paragraph 1, letter b) of Italian Legislative Decree no. 231/2001 (the "Supervisory Body").

Current rules on the prevention and fight against corruption, the National Anti-Corruption Plan and the issue of Italian Legislative Decree no. 231/2001 on "Regulations of the administrative liability of legal entities" ultimately meant that Alkemy needed to issue a Code of Ethics as an integral part of the organisation and control model. It comprises all the values and objectives aimed at assuring moralisation and economic efficiency in intra-corporate relations (senior management, management, employees and collaborators) and relations external to Alkemy S.p.A. (business and market). The Code of Ethics fosters unambiguous guidelines to conduct in compliance with rules governing the prevention of crimes, in respect of principles of transparency, impartiality, correctness and traceability relative to the decision-making process and cash flows.

Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/01

Inspired by its values (Excellence, Passion, Integrity and Concreteness), in 2016, Alkemy S.p.A. updated its Organisation, Management and Control Model pursuant to Italian Legislative Decree no. 231/01. The organisational model aims to offer an organised system of provisions, procedures and controls with the declared aim of implementing a system of prevention. The model's main aims are:

• to make those operating within Alkemy S.p.A. and those with whom the company collaborates in any way and on any level, aware of the risks of the perpetration of the crimes envisaged by Italian Legislative Decree no. 231/01 and of the fact that committing such crimes damages the company as a whole;
• to firmly stress that unlawful conduct of any nature is strictly prohibited and very much condemned by Alkemy S.p.A. insofar as it is in conflict not only with the law but also with the ethical principles the company upholds in pursuing its mission;
• to develop a suitable system of preventive controls so as to exclude the possibility of anyone working within the entity potentially justifying their unlawful conduct by claiming ignorance of corporate directives and avoiding the possibility that, in normal cases, the crime may be caused by human error (also due to negligence or lack of expertise) in assessing company directives;
• to make it possible for the company to intervene with suitable provisions, to prevent or fight any unlawful conduct.

Code of Ethics

With the update of the Organisational Model pursuant to Italian Legislative Decree no. 231/01, Alkemy also equipped itself with a Code of Ethics, which constitutes all values, principles and lines of conduct that must inspire employees and collaborators of the Group in going about their work.

In accordance with the Code of Ethics, all Alkemy staff is called to behave loyally, impartially, diligently and fairly. All company business must be carried out with the utmost diligence, honesty, collaboration, fairness, loyalty, moral integrity and professional rigour, in observance of the laws, procedures and corporate regulations and in compliance with the Code of Ethics.

Anti-corruption

The Alkemy Group is firmly committed to going about its business transparently, honestly and ethically, in all countries where it works and refuses all forms of corruption.

The application and respect for the rules on the prevention of and fight against corruption impacts all the intra-company departments, senior management, management, employees and collaborators. The rules apply to external relations with customers and suppliers and relations with stakeholders in general, particularly where the need is seen to monitor economic and financial relations, with particularly close attention paid to conflicts of interest, relations with the competition, related parties and relations with the public administration.

To this end, in 2020, Alkemy S.p.A. re-mapped the risks, crimes and controls, analysing the business processes and identifying the activities that are exposed to risks resulting from the combination of "Crime risk" - "Implementation". More specifically, the mapping of risks, offences and controls and procedures was repeated, to include the latest new legislation: - Italian Legislative Decree no. 75/2020 (fraud in public supplies) (Embezzlement and abuse of office) (Tax offences), Italian Decree Law of 21/09/2019, Art. 1, paragraph 11 (violation of rules governing the cybernetic national security scope), Italian Legislative Decree no. 21/2018 (Racism and xenophobia). After the mapping, specific procedures were implemented, circumscribed to 18 protocols.

As mentioned previously, a collegial Supervisory Body has been appointed, tasked with overseeing observance of the Model 231, compliance with the Code of Ethics, its effectiveness in terms of preventing crimes, the implementation of provisions and, finally, its update. If any changes should be noted to the company structure and organisation or changes to the reference regulatory framework, the Supervisory Body has its own Regulation and reports back to the Parent's Board of Directors.

The absence of any events that are misaligned with the principles and provisions of the Organisational Model in 2020 too, is evidence of the effectiveness of the approach taken by the management in terms of preventing crimes and corruption. The periodic review of the instruments and organisational manner for the prevention of corruption, assures the effectiveness of the actions defined for the topic under review.

BOX - Mapping of risks relating to crimes of corruption

Alkemy S.p.A. has implemented a Management System that, once a risk matrix has been identified and all aspects analysed in respect of compliance with the main rules (Italian Legislative Decree no. 231/01, Italian Decree Law no. 81/08, Italian Legislative Decree no. 163/03 - GDPR, ISO9001:2015), in consideration of specific procedures issued by the company, ensures the training of the parties concerned, the verification of the implementation and effectiveness of the Protocols, their spread within and, if necessary, outside the company and periodic updates as risks changes, of rules, the company structure and the external political and economic context.

The Management System has the following steps:

• •Periodic context analysis;
• •Risk assessment and periodic verification;
• •Risk treatment.

In relation to anti-corruption, the following Protocols are in force:

• •PT1 Management of relations with the PA
• •PT3 Cash flow management
• •PT4 Management of public procedures Tender Code
• •PT5 Professional consultancy and appraisals
• •PT6 Management of donations, gifts and free loans to third parties
• •PT7 Management of advances and expense reimbursements
• •PT18 Subsidised finance

The Internal Auditing function has also been launched.

In relation to the work carried out by the Alkemy Group, there are no limits in respect of organisational size and dynamics nor indeed in respect of commercial and accounting aspects or even in relation to operative processes. The active management system has a modular structure that is extended to include new processes when the risk associated with them is assessed as at least "medium". During the annual system review, crime risks are reassessed and, consequently, their management is regulated.

As regards the forthcoming actions, together with the Internal Auditing function, consideration will be given to including an International Assessment Body as part of the risk management system organisational structure, to implement ISO37001 certification on anti-corruption.

Risk analysis and management

For the Group, FY 2019 marked the start of the route towards the disclosure to its stakeholders of its performance, not only in economic terms, but also social and environmental.

It is on this premise that the need stems to supplement the sustainability principles within the risk assessment process, with the aim of examining them in non-financial terms and identifying the main impacts generated by the Group activities. At the same time, the Group is analysing the impact that the risks associated with climate change (physical/transition) may have on the Group's business and value chain, as well as the effects its business may have on the environment.

To this end, the Group has identified the following risks connected with the material topics listed in the section entitled "Sustainability for Alkemy" of this Declaration.

Risks associated with information security, cyber attacks and possible unlawful conduct and/or fraud committed on the e-commerce platform

The Alkemy Group is exposed to the risk of suffering cyber attacks against its systems, which may entail unauthorised access to customer data, the use of such data (deliberate or otherwise), the theft, loss or destruction by current or previous employees, consultants or suppliers or third parties who have gained access to such, resulting in possible claims for compensation for damages and losses made by customers or of part of the turnover generated by such customers and negative impacts on the Group's reputation with accordingly negative consequences on the Group's business, prospects and economic, equity and financial position.

The infrastructures, computer systems and software are constantly exposed to the risk of intrusion by unauthorised third parties. In the event of an attack, a potential unauthorised access to the computer systems, or even merely an attempted intrusion, customers' perception of the security of the Group's infrastructures, computer systems and software may change and this may entail a loss of customers (including important ones) and a negative impact on sales of services.

Any misappropriation or unlawful use of such information, loss of data or communication of confidential and/or proprietary information or the tampering with such information may also constitute a breach, traceable to Alkemy and/or the Alkemy Group, of regulation governing personal data protection.

The Alkemy Group could, therefore, incur liability, with possible negative impacts on the Issuer and Group's business, prospects, reputation and economic, equity and financial position. Additionally, the Group is particularly exposed to the risk deriving from the continuous evolution of technologies and hacking techniques that can be used to gain unlawful access to, or to sabotage, the computer systems. Consequently, considering the rapid, continuous evolution of hacking activities, the Group may not be able to prevent or avoid any such attacks, the danger level of which is increased by the fact that they may not be detected until launched against a given target.

Finally, the Group is exposed to the risk of any liability deriving from unlawful, fraudulent and/or in general incorrect conduct by its customers, such as, for example, financial fraud and/or online fraud, on the e-commerce platform "Zulu" that the Group has, up until the first quarter of 2020, made available to allow its customers to carry out on-line trade with consequent negative impacts for the Group, including for its reputation. Customers sell products directly or indirectly, through the Group, on this e-commerce platform. Both customers and Group companies can therefore be held liable for the sales and after-sales process and party to contractual relations stipulated with buyers. It is stressed that starting from the second quarter of 2020, Alkemy no longer carries out any e-commerce business in the management of physical products, instead focussing on strategic and operative consultancy in that area. It therefore follows that said risk was eliminated during the year.

If the Group should incur liability deriving from unlawful, fraudulent and/or in general incorrect conduct by its customers on the e-commerce platforms, this may have a negative impact on the Group's business, prospects and economic, equity and financial position.

The Company believes this risk factor to be unlikely to occur and in any case with a low negative potential effect.

For information on the activities of the Alkemy Group and for a description of the measures implemented, reference is made to the Section on "Cybersecurity and data protection" of this Statement.

Risks associated with the function of the computer systems

The Group's activities could be negatively impacted by interruptions in the infrastructures and computer systems or attempted unauthorised access or breaches of its data security system.

The activities carried out by the Group are closely linked to the use of the infrastructures and computer systems, which are exposed to multiple operational risks deriving from equipment failures, interruptions to work or connectivity, programming errors, unlawful conduct by third parties and/or exceptional events that, if such should occur, may prejudice the correct function of the systems and force the Group companies to suspend or interrupt their activities, with consequent negative effects on the Group's economic, equity and financial position.

A key component of the Group's activities and of the segment in which it works, as well as one of the key factors of success is the capacity to benefit from (and maintain) a suitable IT infrastructure or infrastructure of technology dedicated to the development of services offered, which is able to guarantee a complete, constant aid to the provision of services offered to customers.

In this regard, please note that the only application software used by the Group to manage the administrative systems is the SAP (System Application and Product in data processing), while the other systems, such as, for example, the Amazon Cloud, used to host the websites, consist of "as-a-service" software and does not, therefore, require the installation of any software.

Operational risks mainly regard IT equipment and tools (e.g. the Zulu software used by the Group in Channel Innovation activities) both owned by the Alkemy Group and by third parties used by the Group to provide certain services.

To this end, it is specified that the Group develops a specific disaster recovery plan and a security policy for each client, dedicated and calibrated to the project specifics.

The Company believes it unlikely that this risk factor will arise and expects any potential negative impact of such to be medium.

For information on the activities of the Alkemy Group and for a description of the measures implemented, reference is made to the Section on "Cybersecurity and data protection" of this Statement.

Risks associated with personal data processing

The Group is exposed to the risk that the personal data of employees or customers collected by the Group may be damaged, lost, removed, disclosed or processed for purposes other than those permitted.

The personal data of the employees and/or end users of the Group is stored in computer and physical archives at the offices of the individual Group companies under document management and archiving, equipped with functions necessary for preventing unauthorised external access or loss (total or partial) of the data, as well as for ensuring continuity of the service.

Any cyber attacks may entail the risk that certain confidential information relating to personal data could be unduly acquired, stolen or used, deliberately or otherwise, by current or previous employees, collaborators, third party consultants or anyone else who may have had access to such, with the possible consequent breach, traceable to the Group, of regulations on the protection of certain data and consequent negative effects on the Group's business and prospects, as well as on its economic, equity and financial position.

It is noted that the Group has taken all action necessary to comply with new legislation on personal data processing introduced in each European Union Member State with Regulation (EU) 2016/679, including the appointment of a Data Protection Officer. In 2020, the figure of the Chief Technology Officer was introduced. It cannot be excluded that the Issuer or other Group companies may breach applicable legislation in the future, with possible sanctions by the competent authority and consequent negative effects on the Issuer and Group's business, and reputation, as well their economic, equity and financial position.

The Company believes it unlikely that this risk factor will arise and expects any potential negative impact of such to be medium.

For information on the activities of the Alkemy Group and for a description of the measures implemented, reference is made to the Section on "Cybersecurity and data protection" of this Statement.

Risks associated with the protection of intellectual property

The Group may not manage to suitably protect its intellectual property, technological knowhow and trademarks and may, consequently, breach third party intellectual property rights with possible negative impacts on the business, results and economic position.

The Group's success also depends on the use and importance of its intellectual property and, consequently, the capacity to protect such from potential third party breach. To this end, the Group protects its intellectual property rights in the territories in which it operates, registering its trademarks and internet domains and constantly monitoring the status of the individual registrations.

There can be no certainty that the action taken by the Group to protect the topic shall suffice to adequately protect the intellectual property relative to the conduct of business, with the consequence that third parties, including partners for joint research and development activities and customers benefiting from the services offered by the Group, may make undue use of methods, know-how, trademarks, trade secrets and other information of commercial value pertaining to the Group, so as to harm its related rights.

The Group may, therefore, see itself forced to take legal action against subjects whose activities have been carried out in breach of its intellectual property rights, with the consequence of needing to deal with costs connected with the onset and pursuit of the related proceedings. Any onset of such events and their direct and indirect consequences may have negative impacts on the Group and Issuer's business, prospects and economic, equity and financial position.

The Group may also be subject to disputes raised by third parties for alleged breach of their intellectual property rights in connection with the services supplied by it. These disputes may lead to lawsuits, or the need to stipulate transactions that my worsen costs in a manner that has not been forecast by the Group, with consequent negative impacts on its business and economic-financial position.

The Company believes this risk factor to be unlikely to occur and in any case with a low negative potential effect.

For information about the Alkemy Group business, and a description of the measures implemented, please refer to the Section on "Innovation and R&D" of this Statement.

Risks associated with relationships with strategic suppliers

The Group is exposed to the risk of encountering difficulty in obtaining suppliers for internet platforms and websites to replace existing ones.

The Alkemy Group goes about its business through internet platforms and websites of subjects external to the Group, with which it stipulates, as applicable, suitable software licence and service contracts, according to texts including standard provisions for such contracts.

The Group may, therefore, not manage to find equivalent suppliers to existing ones, which guarantee the same quality of product and/or service, with consequent negative effects on the Group's business and operations or in any case to find such suppliers quickly, with the consequent risk of delays in the definition of projects and other activities in progress. Any potential initiatives to be taken may entail expenses or difficulties (also in terms of replacement times and/or new investments), with consequent possible negative impacts on the business and prospects as well as on the Group's economic, equity and financial position.

The Company believes this risk factor to be unlikely to occur and in any case with a low negative potential effect.

For information about the Alkemy Group business, and a description of the measures implemented, please refer to the Section on "The supply chain" of this Statement.

Risks associated with the evolution of services in the digital sector and customer demands

The Group is exposed to the risk of being unable to promptly identify technological and digital solutions that are adequate to the evolution of technology and the increasing needs of customers.

The Group manages digital and technological transformation projects for medium-large enterprises and seeks to make a significant contribution towards the growth and development of its customers through the provision of services that can offer the support necessary to identify innovative solutions and growth opportunities in digital and technological evolution.

Therefore, the segment in which the Group operates is characterised by constant research and innovation of the services supplied, also with a view to identifying and anticipating the needs of customers and users (as the end customers of some of the Group's services) as well as quick, major technological changes and the constant evolution of the breakdown of professionals and skills to be aggregated into the provision of the services.

The Group's success therefore depends on the one hand on its capacity to continue to offer services with added value that meet the needs of both customers and end users, and, on the other, the Group's ability to identify new products and/or services ahead of its competitors.

The Company believes it unlikely that this risk factor will arise and expects any potential negative impact of such to be medium.

For information about the Alkemy Group business, and a description of the measures implemented, please refer to the Section on "Customer centricity" of this Statement.

Risks associated with the dependency of the Alkemy Group's business on key management figures, the loss of qualified resources and difficulty in finding new ones

The Group is exposed to the risk of a potential interruption to professional collaboration with certain senior figures or key members of its staff, and to the risk of being unable to attract and withhold highly qualified staff.

The Group's results and success depend considerably on the Parent's management team. As regards the senior figures, a key role is played by Alessandro Mattiacci and Duccio Vitali, who respectively hold the offices of Executive Chairman and Chief Executive Officer of Alkemy S.p.A.

Although in operative and managerial terms, the Group believes that it is equipped with a management team and structure that can reasonably assure continuity of business management, the link between the management and the Group remains a critical factor of its success. Therefore, although the Group has a management incentive system aimed at attracting, motivating and retaining the Group's key resources, it cannot be excluded that if multiple key figures in the Group should cease the office held to date, or the Group should be unable to attract, train and retain qualified managers, also in lieu of any that have stood down, these situations may have a negative impact on the Group's capacity to compete and grow and may impact the envisaged objectives, with possible negative impacts on the Group's business and growth prospects as well as its economic, equity and financial position.

Additionally, considering that the sector in which the Group operates is characterised by the need for the company to use highly-specialised staff with high technical and professional skills, the Group's success also depends on the capacity to attract and train staff with the required technical and professional skills and specialisation.

However, if the Group should encounter difficulty in procuring specialised staff or a significant number of specialised professionals or entire working parties dedicated to specific project types should leave the Group - and it is not possible to replace them quickly with qualified staff - the capacity for innovation and its growth prospects may suffer, with possible negative effects on the Group's economic, equity and financial position.

The Company believes it unlikely that this risk factor will arise and expects any potential negative impact of such to be medium.

For information about the Alkemy Group business, and a description of the measures implemented, please refer to the Section on "Attracting and gaining the loyalty of talent" of this Statement.

Customer centricity

The topic of Customer centricity is extremely important for the Group insofar as it is the main tool used to market and promote Alkemy's business and helps contribute towards building a positive reputation amongst customers.

The Group operates by aggregating within itself multiple competence centres, so as to be able to focus the business on the customer rather than on the individual competence and extract a greater value as the integrated result of all competences. This is why the Group can have a major impact on the development of customer competences, flanking them in the evolution of the business model and giving the innovation of the entire country system a strong boost.

The greatest impact of operating in a customer centric manner can be seen in terms of:

• customer satisfaction;
• revenues by customer;
• the degree of engagement of the various competence centres in customer management;
• national coverage customer dimension.

Additionally, as it is industry agnostic, Alkemy can develop the business model of all its customers, regardless of segment, concentrating on the innovation of the whole of the country system.

The Alkemy Group has taken initiatives aimed at increasing consideration and knowledge in respect of customer centricity, encouraging the involvement of all Group employees towards customers. Moreover, for employees managing and developing customer relations, Alkemy encourages accountability and responsibility in their regard.

Additionally, in this area, the Group has implemented internal and external methods by which to measure customer satisfaction and performance remuneration/success fee models aiming to minimise the risk of the customer and ensure the accountability of its employees. Customer satisfaction is measured once a year through an NPS (Net Promoter Score) survey, which is sent to its customers. By using the NPS system, the Group can measure not only the degree of customer satisfaction but also if it is appreciated to the point where it is recommended by its customers.

As compared with 2019, in 2020, a more specific NPS survey was profiled in relation to current customers and those of higher potential for Alkemy. In addition, the contents of the survey administered were extended with questions aimed at assuring a greater understanding of the critical issues or appreciation expressed in regard to Alkemy's services. In 2020, the NPS survey was extended to all the main geographic areas in which the Group operates.

Alkemy has identified the strategic customers in line with the above objectives in terms of impact on the country system, international cover and involvement of the Alkemy competence centres. To this end, weekly pipeline meetings are held, with the aim of assigning each prospect customer a reference, to measure the cross-selling and up-selling of current customers and verify their performance status.

In order to make customer centricity even more relevant, the Group Academy has delivered training courses on the matter. Alkemy ACADEMY is an in-house training course intended for all Group employees, held by the management team and which aims to spread awareness of the culture, values and mission, and to ensure knowledge of all areas in which the Group's business develops.

The Academy promotes the knowledge and interaction with people of the various companies, insofar as it is open to employees of all Group companies and fosters a greater awareness of Alkemy's business and a more direct knowledge by all management.

In May 2020, a representative of the Group management team held a lesson that covered the following aspects:

• the definition and meaning of customer centricity;
• the six aspects of the customer centric approach;
• the ways in which employees can cultivate a customer centric approach within the Alkemy Group.

Finally, the relevance acquired in recent years by customer centricity within the Group is proven by the fact that for employees dealing with customer management, performance assessment methods have been prepared that are based on the results achieved in respect of the objectives set (MBO, Management By Objectives), directly linked to the results and customer satisfaction.

Even for employees not managing customers directly, part of the remuneration is linked to the business values, including the excellence of the work carried out on customers, and integrity.

The work carried out in 2020 on customer centricity, as described previously, has highlighted the opportunity of further strengthening both the organisation and process area, highlighting the need for a greater focus on sales and business generation, both on current and potential customers.

Sustainability for Alkemy

Starting from last reporting year, the Group has launched its sustainability route, publishing its first Non-Financial Statement, through which it intends to offer a disclosure on its performance in technical-economic, social and environmental liability.

As part of the activities preliminary to the definition of the material topics, Alkemy has identified the following stakeholders through an internal analysis, of the context and reference segment, which considered the best practices on a national and international level and the main sustainability frameworks (Global Reporting Initiative, UN Sustainable Development Goals):

The topics reported on in this NFS, identified through a materiality analysis, have been identified taking into account both the interests of the Alkemy Group and those of its stakeholders.

Below is a list of the material topics identified following the materiality analysis performed by the Group, with a comparison with respect to the requirements of Italian Legislative Decree no. 254/2016:

MATERIAL TOPICS	TOPICS Italian Legislative Decree no. 254/16
Governance and compliance
1) Business ethics	Respect for human rights Fight against corruption
2) Anti-corruption	Respect for human rights Fight against corruption
3) Customer centricity	Social
Technical and economic responsibility
4) Customer data security and privacy	Social
5) Capacity for innovation, research and development	Social

Consolidated

|--|

Social responsibility
6)	Diversity and inclusion	Staff-related
		Respect for human rights
7)	Staff training and development	Staff-related
8)	Attraction and gaining the loyalty of talent	Staff-related
9)		Staff-related
	Occupational health and safety	Respect for human rights
Environmental responsibility
	10) Energy consumption and energy	Environmental
efficiency
11) Environmental emissions		Environmental

For each of the topics shown in the table above, the scope of impact has been identified and their reconciliation with the GRI standards given on the last few pages of the document.

	SCOPE OF IMPACT	Reconciliation with
MATERIAL TOPICS	Where the impact occurs	Type of impact	GRI topic
Business ethics	Alkemy Group	Generated by the Group	Tax
Anti-corruption	Alkemy Group	Generated by the Group	Anti-corruption
Customer centricity	Alkemy Group	Generated by the Group	N/A
Customer data security and privacy	Alkemy Group, Suppliers	Generated by the Group and directly connected through a business relation	Customer privacy
Capacity for innovation, research and development	Alkemy Group, universities and research centres	Generated by the Group and to which the Group contributes	N/A
Diversity and inclusion	Alkemy Group	Generated by the Group	Diversity and equal opportunities
Staff training and development	Alkemy Group	Generated by the Group	Training and education

	SCOPE OF IMPACT
MATERIAL TOPICS	Where the impact occurs	Type of impact	Reconciliation with GRI topic
Attraction and gaining the loyalty of talent	Alkemy Group	Generated by the Group	Employment
Occupational health and safety	Alkemy Group	Generated by the Group	Occupational health and safety
Energy consumption and energy efficiency	Alkemy Group, Electricity suppliers	Generated by the Group and directly connected through a business relation	Energy
Environmental emissions	Alkemy Group	Generated by the Group	Emissions

Economic and technical responsibility

Economic-financial results

Listed on the "High-Requirement Securities Segment" (STAR) of the telematic stock market (MTA) of the Italian stock exchange starting 17 December 2019, the share capital of Alkemy S.p.A. (the Group holding company) is represented by 5,609,610 ordinary shares, with a unit value as of 31.12.2020 of €7.08 (for a capitalisation of €39,716,038.8).

The Alkemy Group closed FY 2020 with a net total value of revenues of € 74,932 thousand, as compared with € 84,520 thousand in FY 2019, thereby recording a decrease of 11%, mainly due to the Mexican subsidiary, which was more greatly exposed to travel & leisure customers, particularly impacted by the COVID-19 emergency.

Revenues realised in Italy came to € 53,257 thousand, accounting for 71% of the total (€ 57,112 in 2019, equal to approximately 68%), while that recorded abroad came to € 21,675 thousand, or 29% (€ 27,408 thousand in 2019, or 32%).

Despite the complexity and uncertainty of the context due to the COVID-19 pandemic emergency, FY 2020 saw Alkemy show good resilience in its business, in particular in terms of growth of operating profitability, thanks to the close monitoring of its customers, the greater business efficiency and the new go-to-market strategy focussed on the development of major projects with high added value and greater profitability, pursuing the industrialisation of its business model.

In respect of declining revenues, on export markets in respect of 2019 and, to a lesser extent, in Italy, in 2020, Alkemy recorded a considerable increase in margins, with EBITDA that exceeded the previous year by more than 23% and an EBITDA margin of 8%.

Thanks to the Group's operative structure capacity to adapt, the rationalisation deriving from the new organisation and the business consistency, these results were achieved without having to apply for temporary lay-off funds or other public tools in support of workers, making full use of the available workforce.

As an independent company that leads the digital transformation in the reference geographical areas, Alkemy has a range of services necessary to businesses that want to leave the crisis behind them in a winning position and be competitive on tomorrow's market. The recent evolutions linked to the COVID-19 emergency are forcing businesses to adapt and transform more and more quickly, drastically rethinking their business models taking a digital approach and reinventing the relationship with the new consumers.

For more information on the Group's economic-financial data, please refer to the "Report on Operations" published on the company website https://www.alkemy.com.

Tax transparency

In line with the principle of transparency that inspired the preparation of the new GRI standard 207 on tax management, Alkemy's approach is one of extreme diligence in dealing with tax matters, insofar as it acknowledges the importance of the contribution that the Group can make to the government of the countries in which it operates, in terms of making available resources for the supply of services to the community and sustainable development. Therefore, all assessments regarding direct and indirect tax take an accruals approach, both in terms of the sense of responsibility towards the shareholders and towards the Group's stakeholders.

The Group uses independent professionals of proven experience for its tax matters, so as to guarantee the correct calculation of tax payable, also benefiting from the presence of the control bodies envisaged by legislation, such as the Board of Statutory Auditors and Independent Auditors, assigned, amongst other tasks, to perform the necessary audits.

Please note that under the scope of the Model 231 adopted by the Group, in 2020, the Supervisory Body introduced a new protocol relative to the tax offences pursuant to Italian Law no. 157/2019, amended by Italian Legislative Decree no. 75/2020.

Country	Company	Assets	Number of employees	Property plant and equipment other than cash and cash equivalents	Income from sales to third parties	Income from infra-group transactions with other tax jurisdictions	Pre-tax profit (loss)	Tax	Tax paid
Italy	- Alkemy S.p.A. - Nunatac S.r.l. - Alkemy Play S.r.l.	- Technological and digital innovation - Data analysis, big data and predictive modelling services - Digital communication services for SMEs	353	52,924	52,348	295	147	93	59
Spain	- Ontwice S.L. Madrid - Alkemy Iberia S.L.	- Digital, communication and media services - Marketing services	100	18,772	12,335	305	2,044	547	408
Mexico	- Ontwice Interactive S. de Mexico S.A. - OIS Marketing Digital S.A.	- Digital, communication and media services	56	2,923	8,621	105	683	224	85
Serbia	- Alkemy SEE D.o.o. - Kreativa New Formula D.o.o. - Alkemy Digital Hub D.o.o. - Alkemy Play D.o.o.	- Strategic consultancy for digital advisory - Marketing services - Development of digital platforms for SMEs	25	1,556	621	384	(324)	13	2
USA	- Alkemy USA Inc. in liquidation	Inoperative	0	35	0	0	(6)	0	0
			534		76,210 73,925	1,089	2,544	877	554

Innovation and R&D

In the Alkemy ecosystem, Research and Development is a very important element in the company's value and structure. More specifically, the company uses the Alkemy Lab as a vehicle by which to promote the innovation and research and development on a Group level. Research, cutting-edge technology and technical and strategic competences are the ingredients used by the Lab to act as an innovation driver. From the blockchain to artificial intelligence, design thinking and rapid prototyping and from hackathons to smart objects, Alkemy Lab is the hub of a network of start-ups, businesses, universities, co-working, hubs and innovative agencies that allow it to enrich and renew the range of Alkemy products and services.

The topic of research and development is a transversal topic with various aspects. The main ones include:

Environmental aspects

Alkemy has built and monitors software engines and innovative instruments for smart cities and smart metering topics. The company develops machine learning algorithms applied to Ambient Intelligence: vertical structuring of the data analysis for the recording of public opinion based on social conversations on the topic of the environment. Research ranges from climate change to domestic comfort, pollution in cities, the function of mobility services and energy savings.

Alkemy designs installations that apply new Phygital interaction models tried out on sustainability, green deal and the circular economy.

Social and cultural aspects

The research and development team builds qualified, continuous relations with universities and research centres, with the innovative fabric made up of incubators, start-ups and the R&D sectors of large companies. These relations include: University of Cagliari, University of Calabria, Polytechnic University of Milan, University of Trento, IMT Lucca, Luiss Guido Carli, Talent Garden, Open Campus, CRS4 research centres, CNR and the FabLab network. The creation and development of new competences and professionalism is particularly important, on emerging technologies such as AI and Machine Learning, AR/VR, Blockchain, IOT and Voice.

Internal effects of network aspects

The innovation circuit in Alkemy is configured to all intents and purposes as an important network effect phenomenon, because it contributes towards the growth and expansion of value of the various areas of Alkemy, ranging from data driven strategy to service design and brand experience.

Economic aspects

R&D helps assure Alkemy's growth through grants and subsidised rate loans for the Group's research and innovation.

Alkemy's R&D also impacts a broad spectrum of corporate structures and areas, namely:

Human Resources

Thanks to the R&D programmes and projects, which enabled the creation and continuous input, the company relies on a group of talents and innovators, an essential corporate asset for growth and development, which works by interacting with all areas of the business.

Orders

The virtuous chain cycle sparked by R&D allows for the application and use on the field of models, engines, highly-innovative tools, involving customers and partners in all phases of the business life cycle.

Products

The direct fallout of R&D activities and the Alkemy innovation lines has led to the creation of new products, which have enriched the already competitive company offer. More specifically, we refer to Data and Geo Intelligence products, Smart Object in the Internet of Things, Blockchain applications such as Membership, Secure, decentralised identities, Smart contracts, Augmented and Virtual reality platforms and Vocal applications. Below are some examples of products developed in this area:

1. Scala

2. DReAm/r

3. Sas Alas A Bolare

4. Joule

1. Membership by Blockchain

6. Skill Voice

Services

Consultancy services also benefit from R&D results, thanks to which new designs have been shaped of management services, designs and strategies based on methodology frameworks like Agile, Scrum, Design Thinking and Growth Hacking.

Finance

In 2020, Alkemy spa incurred total costs for research and development in the amount of € 1,531 thousand, down 52% on the € 3,180 thousand booked in 2019, of which € 1,095 thousand for dedicated staff (€ 2,634 thousand in 2019) and € 436 thousand for external consultancy costs (€ 546 thousand in 2019).

R&D contributes towards the formulation and supply of the new line of Alkemy services and contents, which concentrates on the Academy training offer available to Group employees. In addition to mainly technological contents, the research and development lines have configured, as part of the Academy, methodological sessions of great interest on the market, such as Agile and Scrum, Design Thinking and Growth Hacking.

Additionally, governance uses the Agile/Scrum methodology applied to team management and research cases, pilots and trials. A great many different tools are used, which are efficient and distributed and help monitor and track the research lines and objectives to be achieved: messaging programs (Slack, Telegram, Whatsapp), tracking and ticketing tools (Trello, Redmine, Jira) and continuous deployment and delivery and test automation platforms. The adoption of data-driven models is important for the definition of new innovative lines offered by the company, including products, services and business strategies.

To this end, continuing on from 2019, 2020 saw the innovation of 3 strategic products for the collection and spread of awareness of the business culture and knowledge:

• MyLake for the controlled distribution of information about products and projects carried out for customers, continuing on from the 2019 project.
• MyLibrary for the structuring of the offer portfolio, developed in continuity of the 2019 project.
• MyEntertainment for the enhancement of the network of professionals in the creative area, a new project for 2020.

In 2020, the sharing of particularly innovative hard and soft skills in traditional market segments, was implemented mainly in Customer Relationship Management (CRM) and Data Science, allowing the company to prepare new, challenging offers, also in economic terms and go-tomarket.

The commitment and achievement of results in R&D activities is hinged on the capacity to engage the team, which takes place through performance review policies, management by objectives and the net promoter score. The adoption of the Open Innovation model by means of events, aggregating moments, co-design, sharing of experience, participation and testimonials at public events also successfully maximises the results and commitment of research, also in an open dialogue with stakeholders.

Finally, Alkemy's objectives set in terms of R&D are measured and managed using proactive, continuous monitoring and tracking tools. For each investment line or research project, right from the conception and design phase, the specific development objectives and results indicators are identified and potentially divided up by phase (i.e. interim, final). The type of

indicators, which ranges from qualitative and other quantitative indicators, adopts various international standards, such as, for example, the technology readiness level.

Cybersecurity and data protection

The growing level of digitisation has increased the risk connected with cyber threats. Indeed, today an increasing number of cyber threats derive from the evolution and growing complexity of computer systems and a greater vulnerability of the ICT infrastructure and applications forces businesses like Alkemy to adopt systems and procedures that are able to guarantee high levels of security in processing data and sensitive information, within and outside the organisation.

The Group does not pursue a business that envisages the processing and/or management of a large quantity of data within, because, in going about its activities, it is only responsible for processing data on behalf of its customers when providing services and does not instead operate as the proprietor of the data.

In order to safeguard and protect the data and information it finds itself handling as best possible, the Alkemy Group has carried out all the activities envisaged by European Regulation 679/2016 (the GDPR). In order to meet the requirements of this legislation, in 2018, the Alkemy Group appointed a Data Protection Officer tasked with overseeing and guaranteeing the correct processing of data and information, in line with current legislation.

In 2020, as announced in 2019, a CTO (Chief Technical Officer) was hired to implement to controls envisaged to obtain ISO 27001 certification relative to information security measures and implement internal data management systems.

As part of adjustment to comply with current legislation, Alkemy S.p.A. has also introduced multiple technical and organisational data protection policies, including the Data Regulation Policy, the Internal Regulation Policy and the Privacy Policy, able to guarantee security in the Group's processes and activities.

Finally, the principles of confidentiality and privacy are established in the Parent's Code of Ethics, which provides its employees and collaborators with a full list of information defined as confidentiality (exclusively the property of Alkemy) and, therefore, which is subject to confidentiality restrictions.

In addition, in 2020 training courses were delivered on the GDPR to all Group employees, in addition to specific training sessions dedicated to employees holding positions that involve processing data.

As proof of the Group's commitment to safeguarding data and information, in 2020, just like in 2019, no complaints were received in relation to privacy breaches from customers or data losses.

Number of substantiated complaints concerning breaches of customer privacy and losses of data of customers
	2019	2020
Number of complaints received from third parties in relation to cases of privacy breaches of customers	0	0
Number of complaints received from regulatory entities relative to cases of privacy breaches of customers	0	0

In 2020, there were no episodes of data breach, differently to 2019 when one episode took place, which, however, concluded with no liability attached to Alkemy.

Leaks, losses or thefts of identified customer data
	2019	2020
Total number recorded of customer data leaks, thefts or losses	1	0

Environmental responsibility

The Alkemy Group is aware of the need to make responsible use of its energy and environmental resources. The commitment towards these topics is based on the principles included in the Code of Ethics, which demands that its employees and collaborators take part in the risk prevention and environmental safeguarding process.

Use of energy is a material topic for the Group insofar as it can have significant impacts on the environment and possibly consequently impact climate change, a topic that gives rise to growing concern and which requires the collaboration of various stakeholders (public, private, local communities, etc.) if it is to be successfully broached.

The Group has identified and circumscribed for its business type, the businesses with an environmental impact, which mainly relate to the consumption of energy resources for heating⁶ and lighting offices, to run computers for work and for fuel to power company cars.

Alkemy's business in fact consists of the provision of services to customer businesses, which are supplied at the offices of the various Group companies and, to a limited extent, also at the offices of the customers, before COVID-19 and mainly at homes in smart working mode as a consequence of the pandemic. This is why use of energy is limited to the above-specified areas.

In 2020, energy consumption traced to the Group's Italian companies totalled 1,211 Gj from non renewable sources (-25% compared to the 1,612 Gj in 2019), of which 51.7% from consumptions of diesel and petrol used for company cars and the remaining 48.3% from the consumption of electricity.

Type of energy	Unit of measurement	2019	2020
	litres	21,079	14,755
Diesel	Gj	804	529
	litres	51	3,003
Petrol	Gj	2	97
	kWh	223,785	162,520
Electricity	Gj	806	585
Total	Gj	1,612	1,211

ENERGY CONSUMPTION BY TYPE⁷

In relation to fuel consumption, rules of conduct are outlined that can impact the everyday choices of Group employees. For example, use of public vehicles in the city is encouraged rather than private cars or taxis and, where possible, train travel is preferred over air travel.

⁶ With regards to energy consumption for heating offices, please note that to date, the data collection and monitoring systems do not enable a timely collection of the information necessary to report on the data.

⁷ The conversion into Joules was calculated using "Defra - UK Government GHG Conversion Factors for Company Reporting" 2020.

In 2020, the Group's Italian companies produced a total of 99 tonnes of CO2e (-27% compared

• to the 135 tonnes of CO2e produced in 2019). These emissions are divided up into: Direct emissions Scope 1: emissions deriving from the use of energy, as fuel used for the
  • car fleet; Indirect emissions Scope 2: emissions deriving from the generation of electricity purchased.

In 2020, direct Scope 1 emissions due to direct energy consumption (diesel and petrol) came to 44 tonnes CO2e (-20% compared to the 55 tonnes of CO2e in 2019).

Indirect Scope 2 emissions, calculated using the location based method8 instead came to 55 tonnes of CO2e9 (-31% compared to the 80 tonnes of CO2 produced in 2019), while those calculated taking a market based approach10 instead came to 76 tonnes of CO2e11 (-30% compared to the 109 tonnes of CO2 produced in 2019). 8 The location based method reflects the average intensity of emissions deriving from the total national production of electricity

and envisages the use of average emission factors relative to the specific national energy mixes for the production of electricity.

⁹ The data calculated using the location based method is expressed in non-equivalent carbon dioxide; however, the percentage of methane and nitrogen protoxide has a negligible effect on the total emissions of greenhouse gases (CO2equivalents), as can be seen from the reference technical literature.

¹⁰ The market based method envisages the use of emissions factors defined by contract with the electricity supplier. Emissions were therefore calculated using the emissions factors that represent the residual national mix.

¹¹ The data calculated using the market based method is expressed in carbon dioxide equivalent for 2019, whilst the 2020 data is in non-equivalent carbon dioxide; however, the percentage of methane and nitrogen protoxide has a negligible effect on the total emissions of greenhouse gases (CO2equivalents), as can be seen from the reference technical literature.

CO^{2 12} EMISSIONS

Type of energy	Unit of measurement	2019	2020
Direct emissions - Scope 1	tCO2e	55	44
Indirect emissions - Scope 2 - Location based	tCO2e	80	55
Indirect emissions - Scope 2 - Market based	tCO2e	109	76
Total emissions - Location based	tCO2e	135	99
Total emissions - Market based	tCO2e	164	120

Please note that the decline that in 2020 involved both energy consumptions and CO2e emissions was very much impacted by the COVID-19 emergency and the consequent lockdowns, which limited travel to and use of offices.

The Group is committed to increasing the use of Cloud-based services (over proprietary servers) in order to improve use of the hardware, in the case of Cloud-based services, which would reduce energy consumption with a corresponding positive impact on the environment.

¹² To calculate emissions, the following emission factors were used:

Scope1: Scope1: "Defra - UK Government GHG Conversion Factors for Company Reporting 2020";

Scope2 - Location-Based: "Confronti internazionali 2018" (2017 International Comparisons) published by Terna;

Scope2 - Market-Based: "The Association of Issuing Bodies - Residual Mixes and European Attribute Mix 2019 v 1.1".

Social responsibility

The Alkemy Group acknowledges the importance of the centrality of its people and considers them a primary factor in its business success.

The Group aggregates under a single roof resources from very different backgrounds and sources, ranging from strategic consultancy to data analytics, performance marketing and technology; contexts with very different logics and engagement and retention methods.

This diversity is a value and therefore needs to be preserved, maintaining the principles and key elements over time, which the common thread in the professional experience in Alkemy.

As of 31 December 2020, the Group had a total of 534 employees, up on the 526 recorded in 2019, almost all (97% in 2020, an increase on the 95% of 2019) hired on permanent contracts, working every day with commitment, competence and passion. In addition to this, there are 109 external collaborators (up on 2019, when there were 6213), of whom 13 are trainees, 1 temporary workers, 93 external consultants and 2 other types of collaborators, making for a total workforce of 641.

Employees are mainly used at the Group's Italian companies, which hire approximately 69% of the total Group employees, a percentage that reduces on 2019 (69%), followed by Spain, which uses around 19% (17% in 2019), Mexico with around 10% (in line with 2019) and, finally, Serbia, with the remaining 5% (3% in 2019).

¹³ Following an update of the data after publication, the 2019 figure was restated. For data published previously, see the 2019 Consolidated Non-Financial Statement published in the financial statements and reports section of the website www.alkemy.com

						Consolidated
					Non-Financial Statement 2020
GROUP EMPLOYEES BY TYPE OF CONTRACT, GENDER AND REGION AT 31 December 2020
Region	Permanent	Fixed-term	Total	Permanent	Fixed-term	Total
	contract	contract 2019		contract	contract 2020
Italy
Man	190	2	192	182	2	184
Woman	166	7	173	167	2	169
Total	356	9	365	349	4	353
Spain
Man	37	4	41	44	5	49
Woman	43	6	49	49	2	51
Total	80	10	90	93	7	100
Mexico
Man	21	2	23	25	0	25
Woman	28	3	31	31	0	31
Total	49	5	54	56	0	56
Serbia Man	8	1	9	14	1	15
Woman	7	1	8	8	2	10
Total	15	2	17	22	3	25
	Permanent	Fixed-term
GROUP	contract	contract	Total
Man	256	9	265	265	8	273
Woman	244 500	17 26	261	255	6	261
TOTAL			526	520	14	534

GROUP EMPLOYEES BY TYPE OF CONTRACT, GENDER AND REGION AT 31 December 2020

GROUP	Permanent contract	Fixed-term contract	Total
Finally, the Group pays close attention to the needs of its people, in particular with reference to those linked to the conciliation of personal and working life, where possible seeking to offer solutions that suit the individual and professional needs of its people. This is shown by the presence of 20 part-time employees (down on the 31 of 2019), equal to 4% (down on the 6% in 2019) of Group employees, of whom 75% (an increase on the 74% of 2019) are women. GROUP EMPLOYEES BY TYPE OF CONTRACT AND GENDER AS OF 31 December 2020
Gender	Full-time	Part-time 2019	Total	Full-time	Part-time 2020	Total
Man	257	8	265	268	5	273
Woman	238	23	261	246	15	261

Diversity and inclusion

The Alkemy Group is firmly convinced that an inclusive workplace that optimises all diversities (gender, background, sexual preferences, age), is not only an imperative in terms of values, but also a critical success factor for the business. Because diversity is innovation, creativity and the possibility of major impact.

Diversity is very important in a young, multicultural context as is that in which the Group operates. Indeed, as stressed by its Code of Ethics, the Group promises to offer trust and equal opportunities to all, drawing no distinction according to ethnic origin, religion, opinions, nationality, gender, physical conditions, age and social conditions, so as to guarantee a fair, non-discriminatory treatment based on criteria of merit and values of equality, tolerance and mutual respect.

In order to create a real business culture, it is essential to cultivate diversity and inclusion with the same conviction with which we support the other business priorities. Diversity in Alkemy is not only valued but forms the very basis for the organisational culture.

As proof of the Group's attention paid to the topic of diversity, female staff number 261, accounting for approximately 49% (vs 50% in 2019) of all Group employees, whilst men total 273, an increase on the 265 in 2019, constituting the remaining 51% of Group employees. Additionally, as of 31 December 2020, 5 employees working for the Group's Italian companies belong to protected categories, down on the 6 present in 2019.

In terms of a breakdown by professional category of employees, as of 31 December 2020, approximately 81% (a reduction on the 83% in 2019) come under the category of office workers. Instead, the categories of middle managers and managers respectively account for approximately 16% (up on the 13% of 2019) and 3% (down on the 4% of 2019) of total employees.

The Group sets itself the important object to increase the number of women in managerial positions, which as of 31 December 2020 equates to approximately 30% (down on the 2019 32%) of all management and middle management. 2020 then saw the introduction of quantitative KPIs, which envisage a minimum number of women on the management team (the Group's first and second lines). In favour of this objective, in 2020, continuing on from the work carried out in 2019, close attention was also paid during recruiting, resulting in the hiring of a considerable number of women during the year. More specifically, in 2020, with the definition of the new recruiting process, quantitative KPIs were introduced, with the aim of encouraging gender equality and the globalisation of candidates during the selection process. The short-list of candidates to permanent positions must include at least one woman and at least one must be of foreign nationality.

							Consolidated Non-Financial Statement 2020
GROUP EMPLOYEES BY PROFESSIONAL CATEGORY AND GENDER AS OF 31 December 2020
Professional category	Man		Woman	Total	Man	Woman	Total
			2019			2020
Managers	19		2	21	13	2	15
Middle managers	43		27	70	57	28	85
Office employees	203		232	435	203	231	434
			261	526	273	261	534
Total	265
Almost all (62%, up on the 59% booked in 2019) of the Group's employees fall within the 30 - 50 years old age bracket, with 32% (down on 2019, when it was 35%) in the under 30 years old bracket. The residual 6% are employees aged over 50. GROUP EMPLOYEES BY PROFESSIONAL CATEGORY AND AGE BRACKET AS OF 31 December 2020
Professional category	<30 years old	30-50 years old	>50 years old	Total	<30 years old	30-50 years old	>50 years old Total
Executives	0	2019 16	5	21	0	2020 10	15 5
Middle managers	5	52	13	70	10	62	13 85

GROUP EMPLOYEES BY PROFESSIONAL CATEGORY AND GENDER AS OF 31 December 2020

Professional category		<30 years old 30-50 years old >50 years old		Total Total		<30 years old 30-50 years old >50 years old		Total
		2019				2020
Executives		C						15
Middle managers		52	13	70		62	13	85
Employees	178	242	15	435	160	257	17	434
Total	183	310	33	526	170	329	રૂદ	534

Continuing on from 2019, again in 2020, the Group took some initiatives to raise awareness amongst its employees on the topic in question. More specifically, in this respect, we note that the delivery of a training session on "unconscious bias", dedicated to the management team, and a survey for all staff, the aim of which was to analyse the perception our resources have of the workplace in respect of matters of diversity and with a specific focus on the gender dimension.

The survey made it possible to gain a greater awareness of the internal working context, giving everyone their say. The ensuing results and comments were the starting point for the planning of targeted actions by which to improve, and allow everyone to express their best, in a positive environment that fosters the growth of everyone. The consequent actions included three voluntary focus groups, coordinated by an external consultant. Each focus group involved ten people, representing the Alkemy business units, the different levels of seniority and the different professional skills. The output of the focus groups will be various initiatives, still being decided, which will be implemented according to the time and resources necessary.

In view of the important result and contribution made by the survey, the Group has produced and made available to all Alkemy employees, its "Diversity & Inclusion Manifesto", which describes the corporate values in relation to the topic in question: diversity is, in fact, particularly important to Alkemy, insofar as it is precisely the diversity and complementary nature of the talents that makes up the Group's DNA.

In order to stress Alkemy's commitment to the topic of Diversity and the a view to playing an active part in sensitising public opinion and the company, in 2020, the Group became the official media partner of Milan Pride, producing the 2020 Pride campaign "Let Love Come Out".

Attraction and gaining the loyalty of talent

The Group has always paid particularly close attention to the search and selection of the very best talents, based on two key principles: that they are GOOD PEOPLE (professionally) for the specific competences and experiences and GOOD PEOPLE (ethically) in line with our business culture and values, which are the "extras" in our alchemy.

The Group has always put people right at the heart of its decisions, aiming to guarantee the best possible conditions to each and every one of them, in which to do their work to the best of their ability in an inclusive, stimulating workplace where everyone feels they are making a contribution first hand towards the achievement of the corporate objectives.

This occurs also thanks to the constant promotion of internal communication activities, led by the various members of the leadership team, and of various internal initiatives connected with the spread of awareness of our culture and values.

During the recruiting process, we not only measure the technical skills of candidates through specific interviews held by our first and second lines, but we also check for the cultural and behavioural fit of the candidate, with an initial interview with the People & Culture HR Department.

Once a year, in November and December, our people are asked to complete a selfassessment on the degree to which the objectives assigned for that year have been achieved, as well as giving an overall opinion on their own performance. This card is then sent up to the managers, who fill in the assessments, involving anyone able to make a contribution and who may have a different perspective to that of the employee.

In addition to the performance assessment carried out for the current year, the managers also indicate the employee's objectives for the following year. The assessments should also point out aspects for improvement and the growth path as a whole.

Individual assessment interviews with each of our people are planned for February the following year. During the assessment, in addition to the assignment of formal objectives by the managers (Chief Executive Officer, Managing Director and Director), and verifying their partial or complete achievement, in respect of the year that has passed, any individual changes to remuneration and level are also notified. The process is coordinated by the People & Culture Department.

Alkemy's People Strategy is based on a total reward system. This term is used to refer to the set of remuneration and incentive systems adopted with a view to attracting, motivating and retaining talent, guiding conduct according to the values and principles of the Group's organisational culture, towards the forecast corporate objectives.

All employees are entitled to the same types of benefits, with no distinction drawn between full- and part-timers. In general, on an Italian level, the following corporate welfare initiatives apply:

• two portals containing employee discounts;
• ATM convention to simplify transport for employees;
• basic medical insurance;
• Fondo est is also open to fixed-term employees;
• Smart working.

In 2020, additional welfare initiatives were introduced for our employees, along with new partnerships and additional benefits aimed at improving our all-round employee experience.

We are also firmly convinced that assuring our organisation greater flexibility, guaranteeing greater autonomy for our people and holding them accountable thanks to a definition of work by objectives, can help conciliate personal and working lives and, at the same time, foster individual growth and productivity.

This is why, even back in 2019, Alkemy had chosen to introduce smart working options for our employees, in open mode (with no limit to the number of days, as long as approved by the manager), taking a key step towards consolidating its organisational culture model based on principles of freedom and responsibility.

The flexibility achieved by the working model has meant that in 2020, the Group found itself ready to address the COVID-19 emergency and consequent lock-downs without actually suffering any decline in productivity, guaranteeing all employees the possibility of working from home, equipped with adequate tools and in complete safety.

In 2020, the Group's People & Culture function pooled all eight touchpoints characterising the people's route in Alkemy, from talent attraction through to exit, formalising the Alkemy Employee Experience (AEX).

The aim of the Alkemy Employee Experience is to put the people right at the heart of the organisation and create the very best conditions for a journey in which everyone can fully release their potential and achieve their professional goals, promoting an inclusive, stimulating workplace in which everyone feels authorised to make a concrete contribution towards Alkemy's success.

Consolidated Non-Financial Statement 2020

Finally, the Alkemy model is based on a strong investment by management, hence stock incentives are seen as key leverage. Since it was first established in 2012, two stock option plans have been launched, involving around seventy managers and employees. In view of the success of the initiative, we are currently examining the possibility of introducing a subsidised share purchase plan for Alkemy employees.

Staff training and development

The Group sees training as the main tool by which to value and develop its people. Our approach has always been one of continuous learning, which consists of promoting the continuous growth of the baggage of skills and knowledge held by our resources, adjusting it to the rapid evolution of the digital and technological context. Additionally, we stimulate our people to seek continuous training and consolidation of their soft skills through the delivery of dedicated training courses open to the whole company population.

Alkemy is lucky enough to aggregate people with very diverse professions and backgrounds under a single roof and has always promoted a culture of sharing and "contamination" to guide the growth of our people in acquiring competences that differ and complement their own vertical path.

In particular, all Training, People Development, Performance e Talent Management, Company Culture, Internal Communication and Diversity & Inclusion activities are managed by the Alkemy People & Culture department.

Together with the management and through liaising with the HR Operations Department, it is responsible for designing and planning a series of training % development initiatives and actions.

In 2020, the Group continued on with the activities started in 2019, increasing the investments in training staff, with the definition of an extensive training catalogue that can be accessed freely by all employees.

In addition, in 2020, each employee was equipped with a "training wallet", namely a personal voucher worth €500, which can be used to finance participation in any course or workshop, freely chosen, delivered outside the Group.

In 2020, all training continued uninterrupted with the use of e-learning platforms.

Multiple objectives are set by these initiatives, including:

• to assure the personal and professional growth of all resources, focussing on motivation, corporate climate and performance;
• to identify and manage talents within and outside the Group, thereby developing them;
• to promote employer branding;
• to ensure talent retention.

Training is coordinated and planned by the HR Operations and People & Culture Departments and involves the whole organisation on different levels, from top management to the more junior resources, staff and first line.

On the basis of this organisation, and as mentioned previously, for the last three years, the Group has been promoting the development of the Alkemy Academy, a internal training path open to all Group employees, held by the management team and setting the aim of spreading awareness of the internal culture, values and mission as well as assuring full knowledge of all areas in which the business develops.

Through Alkemy Academy, in 2020, continuing on from 2019, the Group delivered 15 specific training courses, involving 14 in-house teachers, 1 more than in 2019, with an average of between 40 and 50 participants per lesson, a clear increase on the 20 people average seen in 2019. Indeed, the fact that lessons were held entirely on-line meant that attendance was far higher.

More specifically, in 2020, continuing on from 2019, training hours were delivered dedicated to reinforcing the main soft skills and developing the vertical competences that characterise the various Group functions. Directors (second lines) were assigned a leadership and personal effectiveness development course, followed by individual coaching sessions. Recurring courses on public speaking, time management and team working were also run, and English and Spanish language courses were delivered constantly.

As further evidence of the Group's commitment to developing the skills of its employees, in 2020, more than 9,000 training hours were delivered to all professional levels, more than double

that of 2019 when there were 4,000 hours. Per capita training hours came to 19.9 in 2020 (7.7 in 2019), of which 18.2 hours for men (8.1 in 2019) and 15.4 hours for women (7.2 in 2019).

Consolidated Non-Financial Statement 2020 that of 2019 when there were 4,000 hours. Per capita training hours came to 19.9 in 2020 (7.7 in 2019), of which 18.2 hours for men (8.1 in 2019) and 15.4 hours for women (7.2 in 2019).

TRAINING HOURS BY PROFESSIONAL CATEGORY AND GENDER AS OF 31 December 2020

AVERAGE HOURS PER CAPITA OF TRAINING BY PROFESSIONAL CATEGORY AS OF 31 December 2020

Man	Professional category	2019 8.1	2020 18.2
Woman Total		7.2 7.7	15.4 16.9

AVERAGE HOURS PER CAPITA OF TRAINING BY GENDER AS OF 31 December 2020

Professional category	2019	20920
Man	8.1	18.2
Woman	7.2	15.4
Total	7.7	16.9

The Group is extremely attentive towards the matter of optimising its talents. In this Area, 2020 saw the continuation of the Alkemy Talent Management Programme, launched for the first time in 2019 with the aim of identifying the best talents and helping assure their growth and development within Alkemy. The programme seeks to be a unique experience for our talents, offering training and growth, in contact with the management and the entire pool of talents. It is a talent experience intended as an accelerator of development for all those wishing to release their full potential and strive towards ever more ambitious results, making a first-hand contribution towards the Group's success.

The Group's approach to talent management adheres to the principles of transparency and involvement, so that everyone is aware they can satisfy their ambitions and develop their

potential in a participatory professional environment that is stimulating and assures constant growth.

Talent in Alkemy is a resource that stands out from the others, which can make the difference, which emerges both through technical skills and communication and leadership qualities. Talent is also an enabler of other talent: it searches for it, optimises it and makes it available to the common objective. Talent is not only part of our alchemy, it is its hallmark.

The Group offers its talents:

• a mentoring system, launched in December 2019, whereby they are flanked by a member of the company's senior management team. The aim of the mentor is to guide the talent through the development of their own professional objectives, assisting them throughout the talent experience.
• technical and managerial training delivered starting 2020, which involves, for each talent chosen, the planning of dedicated individual and specific technical training courses.
• preferential access to cross initiatives, such as job rotation, special corporate projects and experiences abroad.

At the same time, talents are required to play an active role, becoming the real AMBASSADORS of Alkemy: the aim is to spread the Group's culture and be an example of our alchemy - for all our people and customers. The talent must be a leader of values and skills, an example of responsibility and concreteness, both for their team and all Alkemy people, but also an enabler of others' excellence, optimising individual talents and competences and leveraging on diversity to the service of the common objective. The talent must also help make Alkemy the "BEST PLACE TO WORK", making proactive suggestions for ideas and initiatives by which to improve the workplace and corporate climate more and more.

Occupational health and safety

Protection of health and safety at work is, for a company like Alkemy, extremely important, and indeed it is also sanctioned in the Code of Ethics. Improving conduct and increasing the corporate culture of preventing incidents and damages that can occur during work is a commitment that the Group pursues fervently and constantly with a view to offering ever safer workplaces for its people.

Health and safety are not only a workers' right, but also an interest for both companies, which apply 81/08 legislation in Italy and guarantee a comfortable and, therefore, more productive environment, and for society as a whole, which thus finds itself bearing lesser social costs for occupational diseases and injuries. What is so important is that through suitable information and training, safety at work is considered "normal" behaviour, naturally, without any real effort being required. In this sense, Alkemy does everything it can in respect of 81/08 legislation in terms of a service context and a population of video terminal operators.

In 2020, continuing on from 2019, the Group's Italian companies delivered several classroom courses on training for occupational health and safety, for a total of 112 hours of training devoted to this subject, as compared with 200 hours in 2019, as well as, as per the calendar established, having trained Safety Representatives and the Workers' Safety Representative (WSR). In 2020, no medical check-ups nor workplace inspections were carried out with the appointed physician, the Accident Prevention and Protection Service Manager and the WSR in the offices of Milan and elsewhere in Italy, differently to 2019, when 50 visits were organised.

As evidence of Alkemy's commitment to preventing and protecting the health and safety of its employees, in 2020, as in 2019, there were no injuries at work in any of the Group companies.

NUMBER OF INJURIES IN THE GROUP AS OF 31 December 2020¹⁴

Number of injuries	2019	2020
Total number of fatalities associated with injuries at work	0	0
Total number of serious injuries at work (excluding fatalities)	0	0
Total number of recordable work-related injuries	0	0

NUMBER OF HOURS WORKED BY GROUP EMPLOYEES AS OF 31 December 2020

Hours worked	2019	2020
Hours worked by employees	909,569	938,770

GROUP INJURY RATES AS OF 31 December 2020

Rates	2019	2020
Rate of fatalities as a result of work-related injuries	0	0
Rate of high-consequence work-related injuries (excluding fatalities)	0	0
Rate of recordable work-related injuries	0	0

In the future, Alkemy intends to invest further in accident prevention and health and safety at work in order to prevent material damages that can put the organisation at risk of survival and, ultimately, to establish an image of excellence and reliability.

¹⁴ The scope of information about health and safety and the related injury indicators only includes the staff of Group companies.

Management of the COVID-19 emergency

From March to September 2020, all employees in all Alkemy offices, started working efficiently from home, in full support of customers, continuing to work effectively as a team, thanks to the tools and equipment they had already been assigned. In fact the Group had already introduced smart working as an option back in 2019, and this meant that it was well prepared to react immediately to the emergency situation.

During this type, all offices were prepared for the subsequent return: constant cleaning and specific sanitisation, signalling of the stations that can be used at return, purchase and preparation of PPE, preparation of signs and information for employees, just as shown below.

COSA	COME
UFFICI	· Sanificare tutti gli spazi prima del rientro e prevedere pulizie due volte al giorno con disinfettante specifico. · Acquistare guanti e mascherine da distribuire all'ingresso. · Predisporre gel disinfettante per utilizzo continuativo in ogni sede/piano. · Acquistare misuratore di temperatura elettronico.
ACCESSI	· Organizzare allestimento uffici secondo le direttive. Vietare l'utilizzo delle aree comuni e degli ascensori. · Sviluppo APP di prenotazione della postazione di lavoro: rientro su base volontaria, prevista turnazione per orari di ingresso e giornate di presenza in ufficio. · Accesso consentito se autorizzati dal responsabile, muniti di DPI e autocertificazione
PERSONE	· Divulgare l'informativa sulla sicurezza aggiornata con le istruzioni di dettaglio per il rientro (comportamenti e precauzioni). · Mettere a disposizione un professionista per un supporto psicologico alle nostre persone da attivare in modo discreto e autonomo. · Distribuire lunch box in ufficio per i presenti in sostituzione del buono pasto fino alla riapertura di bar e ristoranti.

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Starting September 2020, the Health Protocol was introduced in all Group sites, for the return to work of Alkemy resources while limiting the risk of COVID-19, with the following objectives:

"In order to organise the gradual return of staff to the workplace, this document identifies the criteria and measures aimed at protecting worker health and safety in the workplace. These criteria and measures will be updated according to the indications that are progressively communicated by the Institutions and Health Authorities, as well as according to the results of the monitoring of the measures adopted and the health status of the workers that will be carried out by the competent figures, limited to the COVID-19 emergency period".

GRI Content Index

GRI Standard	Disclosure	Page number	Notes and omissions
GRI 102: General Disclosures
Organizational profile
GRI 102-1	Name of the organization.	8
GRI 102-2	Activities, brands, products and services.	12-15
GRI 102-3	Location of headquarters.	8
GRI 102-4	Location of operations (the number of countries in which the organization operates and the countries in which the organisation has activities or in which the activity carried out is particularly important with respect to the sustainability issues discussed in the document).	8-9
GRI 102-5	Ownership and legal form.	7
GRI 102-6	Markets served (including the geographical coverage, fields of activity and type of customers and recipients).	11-14
GRI 102-7	Scale of the organization.	7-8, 12-14, 33, 48
GRI 102-8	Information on employees and other workers (number of employees by contract and gender).	48-49
GRI 102-9	Supply chain.	14

|--|--|--|

GRI 102-10	Significant changes to the organization and its supply chain (in the reporting period).	5
GRI 102-11	Precautionary Principle or approach.	22-28
Strategy
GRI 102-14	Statement from senior decision-maker.	3-4
Ethics and integrity
GRI 102-16	Values, principles, standards, and norms of behaviour.	10-11, 20
Governance
GRI 102-18	Governance structure.	15-18
GRI 102-22	Composition of the highest governance body and its committees.	15-17
GRI 102-32	Highest governance body's role in sustainability reporting.	6
Stakeholder engagement
GRI 102-40	List of stakeholder groups.	30
GRI 102-42	Identifying and selecting stakeholders.	30
Reporting practice
GRI 102-45	Entities included in the consolidated financial statements.	6
GRI 102-47	List of material topics (identified in the analysis for establishing the reporting scope).	30-31

|--|

GRI 102-48	Restatements of information (and reasons for the changes).	5, 48
GRI 102-49	Changes in reporting (and limitations with respect to the previous reporting period).	30-31
GRI 102-50	Reporting period.	5
GRI 102-51	Date of most recent report.	-	The 2019 Non Financial Statement was published on March 30th 2020
GRI 102-52	Reporting cycle.	5
GRI 102-54	Claims of reporting in accordance with the GRI Standards.	5
GRI 102-55	GRI Content Index	62-68
	External assurance.	69-72
GRI 102-56
GRI Standard	Disclosure	Page number	Notes and omissions
GRI 200: ECONOMIC SERIES
Topic: Anti-corruption
GRI-103: Management Approach (2016)
103-1	Explanation of the material topic and its Boundary	31-32	-
103-2	The management approach and its components	20-21	-
103-3	Evaluation of the management approach	20-21	-
GRI-205: Anti-corruption (2016)

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Topic: Tax
103-1	Explanation of the material topic and its Boundary	31-32
103-2	The management approach and its components	34
103-3	Evaluation of the management approach	34
207-1	Approach to taxation	34
207-2	Tax governance, risk control and management	34
207-3	Stakeholder engagement and management of tax concerns	34
GRI-207: Tax (2019)
207-4	Country-by-country reporting	34
GRI 300: ENVIRONMENTAL SERIES
Topic: Energy
GRI-103: Management Approach (2016)
103-1	Explanation of the material topic and its Boundary	31-32	-
103-2	The management approach and its components	45-46	-
103-3	Evaluation of the management approach	45-46	-
GRI-302: Energy
302-1	Energy consumption within the organisation	45-46
GRI-305: Emissions
305-1	Direct/Scope 1 GHG emissions	46-47
305-2	Energy indirect/Scope 2 GHG emissions	46-47
GRI 400: SOCIAL SERIES

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Topic: Employment
GRI-103: Management Approach (2016)
103-1	Explanation of the material topic and its Boundary	32-34	-
103-2	The management approach and its components	51-53	-
103-3	Evaluation of the management approach	51-53	-
GRI-401: Employment (2016)
401-2	Benefits provided to full-time employees that are not provided to temporary or part-time employees	52	-
Topic: Occupational health and safety
GRI-103: Management Approach (2016)
103-1	Explanation of the material topic and its Boundary	32-34	-
103-2	The management approach and its components	56	-
103-3	Evaluation of the management approach	56	-
GRI-403: Occupational Health and Safety (2018)
403-1	Occupational health and safety management system	56	-
403-5	Worker training on occupational health and safety	56	-
403-9	Work-related injuries	57	-
Topic: Training and education
GRI-103: Management Approach (2016)
103-1	Explanation of the material topic and its Boundary	32-34	-

103-2	The management approach and its components	53-56	-
103-3	Evaluation of the management approach	53-56	-
GRI-404: Training and Education (2016)
404-1	Average hours of training per year per employee	54-55	-
Topic: Diversity and equal opportunities
GRI-103: Management Approach (2016)
103-1	Explanation of the material topic and its Boundary	32-34	-
103-2	The management approach and its components	49-51	-
103-3	Evaluation of the management approach	49-51	-
GRI-405: Diversity and Equal Opportunity (2016)
405-1	Diversity of governance bodies and employees	19-20, 49-50	-
Topic: Customer privacy
GRI-103: Management Approach (2016)
103-1	Explanation of the material topic and its Boundary	32-34	-
103-2	The management approach and its components	43	-
103-3	Evaluation of the management approach	43	-
GRI-418: Customer privacy (2016)
418-1	Substantiated complaints concerning breaches of customer privacy and losses of customer data	43-44	-
Topic: Customer centricity
GRI-103: Management Approach (2016)

103-1	Explanation of the material topic and its Boundary	32-34
103-2	The management approach and its components	29-31
103-3	Evaluation of the management approach	29-31
Topic: Capacity for innovation, research and development
GRI-103: Management Approach (2016)
103-1	Explanation of the material topic and its Boundary	32-34
103-2	The management approach and its components	35-42
103-3	Evaluation of the management approach	35-42

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