Alkemy — Investor Presentation 2021

Nov 12, 2021

9M 2021 RESULTS

12.11.2021

Disclaimer

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

WE DESIGN BUSINESS EVOLUTION THROUGH DATA, TECHNOLOGY & CREATIVITY

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

The market in which Alkemy insists is the digital transformation market which today is worth over 6 billion euros in Italy and grows at a rate of between 7 and 10% per year.

In this market, Alkemy has developed a differentiated positioning that has allowed it to grow with a CAGR of 33% (>2x the market), to move from the 23 starting resources to a team of over 650 people and a turnover of 74.9M€.

In these 8 years, Alkemy has successfully used the M&A lever (8 acquisitions) using the IPO proceeds in less than nine months, and the EBITDA growth of the four acquisitions made in Italy from 2013 to 2018 was between 70 and 500%.

Alkemy has developed a new organization and a new Go-to-Market strategy that have laid the foundations for the industrialization and expansion of the business scale, resulting in strong organic growth and higher marginality.

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

9M 2021 – DOUBLE DIGIT ORGANIC GROWTH AND EBITDA MARGIN

• Double digit organic growth, up by +20% compared to 9M 2020

• Further improvement in EBITDA margin compared to 9M 2020 (+3.5 pps)

• New Business activity & growth of TOP clients' ARPC

• Positive cash generation over the period (€M 6.5 operative cash flow)

• Positive Group Result of €M 2.6

The industrialization of business model strengthens marginality and boosts organic growth

9M 2021

FINANCIAL HIGHLIGHTS

€M	9M 2021	9M 2020
Turnover	67.5	52.6	+28% vs. 9M 2020, thanks to a first recovery of new business > activities, the new Go-to-Market highly focused on main clients' projects, and the strong recovery of foreign subsidiaries
Adj. EBITDA	7.4	3.9	+90% vs. 9M 2020, thanks to the better mix and efficiencies > arising from the new organization. EBITDA margin up by +3.5 pps
EBIT	4.7	2.2	+118% vs. 9M 2020, thanks to the better operating result. > EBIT margin up by +2.9 pps
EBT	4.0	1.4	+189% vs. 9M 2020, thanks to the better performance over > the period, and lower financial charges (-56%)
Group Net Income	2.6	0.8	+220% vs. 9M 2020, thanks to the better operative result > and to the efficiencies arising from the new organization
Operating Cash Flow	6.5	7.5	Decrease of €M 1.0 compared to 9M 2020 mainly due to > other current assets&liabilities dynamics, related to R&D activities
NFP	-21.9	FY 2020 -12.4	€M -9.5 since 31 December 2020 mostly related to the > change in the Group's perimeter

9M REVENUES(€M) – IAS /IFRS

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

International Italy

› International revenues in 9M 2021 at €M 22.2, up by 57% vs. €M 14.1 in 9M 2020, mainly thanks to Spain and Mexico subsidiaries, which are recovering from COVID-19 related turnover decline in 2020.

FY REVENUES (€M) – IAS /IFRS (1)

73%

9M ALKEMY Adj. EBITDA(€M) – IAS/IFRS

Adj. EBITDA

(1)Ebitda margin is calculated relating the EBITDA to the revenues of the period (2()Ebitda margin net media is calculated relating the EBITDA to the revenues of the period net of Media related revenues from Spain and Mexico companies

MARGIN 20-21 +3.5 pps 9M EBITDA MARGIN – EBITDA MARGIN NET MEDIA (%)(1)(2) 2,8 3,5 3,9 6,2 5,0 6,2 FY ALKEMY Adj. EBITDA(€M) – IAS/IFRS 7,4% 10,9% 8,5% 13,0% 9M 2019 9M 2020 9M 2021

• › 9M 2021 Adj. EBITDA is €M 7.4, +90% compared to 9M 2020 of €M 3.9, thanks to the better mix of the new Go-to-Market strategy and the efficiency and rationalization of the new organization.
• › EBITDA Margin is 10.9% in 9M 2021 vs 7.4% in 9M 2020 with an increase of 3.5 pps, thanks to lower operative costs impact on revenues (-3.5 pps), achieved through to the industrialization process started in 2020.
• › EBITDA Margin net media is 13.0% in 9M 2021 vs. 8.5% in 9M 2020

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

NET FINANCIAL POSITION BRIDGE AND DETAILS

• › Net Financial Position NFP (2) at September 30th 2021 decreased by €M -9.5 compared to €M -12.4 at December 31st, 2020, mainly due to the change in the Group perimeter

• › Variation mainly due to: (i)decrease in cash and equivalents (€M 3.1) due to the two acquisitions, treasury shares buyback and dividends paid to minorities, (ii)increase in bank loans (€M -0.9), (iii) IFRS 16 impact due to change in Group perimeter (€M -2.7), (iv) increase in put options liabilities due to the two acquisitions in the period (€M -2.8).

• › Gross debt is composed by €M 17.4 of financial debt (of which €M 12.8 LT, €M4.2 ST), €M 14.8 put options liabilities deriving from M&A (of which €M 7.6 ST) and €M 5.9 IFRS16

• › 9M 2021 NFP (1) ex IFRS16 is €M 16.0
• › 9M 2021 cash and equivalents is €M 16.2

Net Financial Position Break Down 9M 2021 (€M)

17,4

10

NET TRADE WORKING CAPITAL DYNAMICS

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

• 9M 2021 Net Trade Working capital is €M 15.9, 39% higher than 9M 2020, due to revenues growth in 9M 2021, compared to revenues decrease in 9M 2020

• Cash release from Net Trade Working Capital is €M 3.7 +25% compared to €M 3.0 in 9M 2020, thanks to payables and receivables dynamics

• 9M 2021 DSO at 95 -2% vs. 9M 2020; 9M 2021 DPO -9% vs. 9M 2020

Net Trade Working Capital (€M)

Cash Conversion Cycle Details (days)

9M 2021 P&L – IAS/IFRS

› 9M 2021 Revenues at €M 67.5, up by 28% compared to €M 52.6 of 9M 2020. The increase is mostly organic, attributable to the recovery of New Business activities and the strong focus on main clients. Italian revenues up by 18% yoy, is also related to the acquisitions of the majority stake in DGI and XCC (€M 4.1), and to the new Go-to-Market strategy, the holding of current customers and the acquisition of new contracts and customers . Foreign turnover up by 57%, mainly thanks to Spain and Mexico subsidiaries, which recovered from Covid-19 related loss in turnover in 9M 2020.

› Operative costs decreased reduced the impact on revenues by 3.5 pps compared to 9M 2020. Services costs increased by 18% yoy, but reduced the impact on revenues by 4.1 pps. This efficiency is mostly achieved thanks to the actions taken to internalize tech activities. Personnel costs increased incidence on revenues by 1.0 pp compared to 9M 2020, attributable to the higher FTE for the period (from 524 in 9M 2020 to 613 in 9M 2021), as a confirmation of the positive expectations of management

• on future business performances.
• margin.

› 9M 2021 Adj. EBITDA at €M 7.4 +90% compared to €M 3.9 in 9M 2020, with a margin increase of 3.5 pps (EBITDA margin 10.9%). EBIT is equal to €M 4.7 +118% compared to €M 2.2 in 9M 2020, with an increase of 2.9 pps in EBIT

› EBT at €M 4.0 in 9M 2021, +189% compared to €M 1.4 in 9M 2020. Group Net Profit is €M 2.6 +220% vs €M 0.8 in 9M 2020.

Consolidated Profit & Loss

Profit and Loss (€000) - IAS/IFRS	9M 2020	9M 2021
Revenues	52.653	67.497
Service costs, consum. & goods	(27.837)	(32.944)
Personnel	(20.981)	(28.153)
EBITDA	3.835	6.400
% Revenues	7,3%	9,5%
Non recurrent costs	(46)	(958)
Adj. EBITDA	3.881	7.358
% Revenues	7,4%	10,9%
D&A	(1.292)	(1.636)
Bad debts/ claims/ provisions	(385)	(51)
EBIT	2.158	4.713
% Revenues	4,1%	7,0%
Financial charges	(754)	(660)
EBT	1.404	4.053
Taxes	(591)	(1.432)
% Tax rate	42,1%	35,3%
Net Profit (Loss)	813	2.621
o/w Minorities	(2)	15
o/w Group Net Profit (Loss)	815	2.606

9M 2021 BALANCE SHEET – IAS/ IFRS

› Net Invested Capital at €M 55.9 (€M 43.8 at FY 2020) and consisted of approx. € 15.9 million of Net Trade Working Capital (€M 16.4 FY 2020), €M 52.5 of fixed assets (€M 40.9 FY 2020) of which €M 41.2 of Goodwill (31.7 in FY 2020) and €M 5.8 of IFRS 16 rights of use (3.1 in FY

› Shareholders' equity increased in the period by €M 2.6 since 31 dec. 2020 (+8.5%), mainly thanks to the positive result of the period (€M +2.6), to the exercise of existing stock option plans (€M +0.9), the increase of LTIP reserve (€M +0.8), the dividends paid to minorities (€M -0.7), treasury shares buyback (€M –0.8), and reduction of the fair value of payables for put options exercised after the end of the

• 2020).
• period (€M -0.3).

› Net Financial Position at September 30th 2021 negative for €M -21.9 (ante-IFRS 16 at €M -16.0) with decreasing by €M -9.5 compared to FY 2020, mainly due to the change in the Group perimeter. More specifically the variation is mainly due to: (i)decrease in cash and equivalents (€M -3.1) due to the two acquisitions, treasury shares buyback and dividends paid to minorities, (ii)increase in bank loans (€M -0.9), (iii) IFRS 16 impact due to change in Group perimeter (€M -2.7), (iv) increase in put options liabilities mainly due to the two acquisitions in the period (€M -2.8). ¹²

Consolidated Balance Sheet

Balance Sheet (€000) - IAS/IFRS FY 2020 9M 2021

Total Funds	43.774	55.940
Net Debt (Cash)	12.378	21.880
Other Financial Debts (IFRS16)	3.191	5.921
Bank Debts Put Option Liabilities	16.071 12.038	17.361 14.796
Other non-current financial assets	0	(391)
Cash & current financial assets	(18.922)	(15.807)
o/w Minorities	254	330
o/w Group Equity	31.142	33.730
Total Equity	31.396	34.060
Total Capital Invested	43.774	55.940
Employees' leaving entitlement	(5.087)	(6.204)
Other Current Liabilities	(12.579)	(10.931)
Other Current Assets	4.207	4.692
Net Trade Working Capital	16.356	15.883
Trade Payables	(14.688)	(12.284)
Trade Receivables	31.044	28.167
Inventories	0	0
Fixed Assets	40.877	52.500
Financial assets	1.174	5
Goodwill	31.755	41.251
o/w rights of use (IFRS16)	3.122	5.794
Intagible assets	7.093	9.843
Tangible assets	855	1.401

9M 2021 CASH FLOW GENERATION – IAS/IFRS

› 9M 2021 Gross Cash Flow at €M 7.0, compared to €M 4.4 in 9M 2020. The increase yoy is mostly due to higher positive result of the period and

› 9M 2021 Operating cash flow at €M 6.5 compared to €M 7.5 of 9M 2020. The negative variation of €M 1.0 is mainly due to the greater absorption by the net working capital, and in particular lower collections deriving from tax credit and subsidized finance, relating to R&Ds carried out in previous years. On the other hand, Trade working capital improved over

• higher non-cash adjustments.
• the period, thanks to DSO decrease.
• €M 5.5, compared to €M 7.4 in 9M 2020.
• in XCC S.r.l. in the period (€M -2.1).

› Ordinary Capex of the period is 7.0x higher than 9M 2020, and it's mostly related to hardware&software equipment for the Group, and offices improvements. 9M 2021 Free Cash Flow before Acquisitions is equal to

› 9M 2021 Free Cash Flow is €M 3.4, compared to €M 7.2 in 9M 2020. The variation is related to the acquisition of the majority stake in DGI S.r.l, and

› Total change in cash for the period was €M -3.1 compared to €M 11.4 in 9M 2020. Cash decrease is mostly due to the two acquisitions, treasury shares buyback and dividends paid to minorities.

Consolidated Cash Flow

Cash Flow Statement (€000) - IAS/IFRS	9M 2020	9M 2021
Net Profit (Loss)	813	2.621
Adjustments (cash tax, interest and other)	1.345	2.092
Non cash items	2.202	2.280
Gross Cash Flow	4.360	6.993
Change in inventories	30	0
Change in trade receivables	8.616	6.295
Change in trade payables	(5.702)	(2.599)
Total change in NTWC	2.944	3.696
Total change in other asset/liabilities	210	(4.134)
Operating Cash Flow	7.514	6.555
Capex	(152)	(1.052)
Free Cash Flow before Acquisition	7.362	5.503
Acquisitions and other financial assets	(113)	(2.116)
Free Cash Flow	7.249	3.387
Change in treasury shares	0	(759)
Dividends to minorities	(667)	(1.023)
Change in bank & fin. Debts	5.625	277
IFRS 16 effect	(715)	(973)
Changes in equity	0	891
Change in put/option	(90)	(4.916)
Change in Cash	11.402	(3.116)
Initial Cash	9.581	18.840
Final Cash	20.983	15.724

OUTLOOK

• The evolution of management expected in the last quarter of 2021 will still depend, albeit to a limited extent, on exogenous factors related to the completion of the vaccination plan, third doses, and the country's economic recovery. The general expectation identifies in the government supports related to the NRRP the possibility of revitalizing the entire economy, the labor market and investments in the digitalization of companies, with positive prospects for the Group for the years to come.

• Taking into account the results achieved in 9M 2021, current business trading and contracts portfolio, barring the occurrence of further aggravating events related to the pandemic, the Group's expectation is to further pursue the path of organic revenues growth and FY 2021 Adj. EBITDA in line with that of the first nine months of 2021.

(2) Other Managers: Alkemy and founders of new acquired companies (3) Buy Back plan was in place until November 2020

A PUBLIC COMPANY LISTED ON MTA – STAR SEGMENT

A SOLID CORPORATE GOVERNANCE

BOARD OF DIRECTORS BOARD OF STATUTORY AUDITORS

Independent Audit Firm: KPMG S.p.A.

Chairman	Alessandro Mattiacci
Chief Executive Officer	Duccio Vitali
Deputy Chairman	Vittorio Massone
General Manager	Massimo Canturi
Director	Riccardo Lorenzini
Independent Director	Giorgia Albeltino
Independent Director	Giulia Bianchi Frangipane
Independent Director	Andrea Di Camillo
Independent Director	Serenella Sala

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

^• The Board of Directors, the Board of Statutory Auditors and the Independent Audit Firm were appointed by the Shareholders' Meeting on June 25, 2017.

^• Vittorio Massone was appointed by the Shareholders' Meeting on April 24, 2020.

^• Massimo Canturi was appointed by the Shareholders' Meeting on April 26, 2021.

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

INVESTOR RELATIONS ir@alkemy.com