Alkemy — Investor Presentation 2021

Oct 7, 2021

ENABLING EVOLUTION

October 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.
• This Presentation may contain financial information and/or operating data and/or market information regarding business and assets of the Company and its subsidiaries. Certain financial information may not have been audited, reviewed or verified by any independent accounting firm.
• Therefore, the recipient undertakes vis-à-vis the Company (i) to keep secret any information of whatever nature relating to the Company and its affiliates including, without limitation, the fact that the information has been provided, (ii) not to disclose any Information to anyone, (iii) not to make or allow any public announcements or communications concerning the Information and (iv) to use reasonable endeavours to ensure that Information are protected against unauthorized access.
• THIS PRESENTATION AND ANY RELATED ORAL DISCUSSION DO NOT CONSTITUTE AN OFFER TO THE PUBLIC OR AN INVITATION TO SUBSCRIBE FOR, PURCHASE OR OTHERWISE ACQUIRE ANY FINANCIAL PRODUCTS, AS DEFINED UNDER ARTICLE 1, PARAGRAPH 1, LETTER (T) OF LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998, AS AMENDED. Therefore, this document is not an advertisement and in no way constitutes a proposal to execute a contract, an offer or invitation to purchase, subscribe or sell for any securities and neither it or any part of it shall form the basis of or be relied upon in connection with any contract or commitment or investments decision whatsoever. The Company has not prepared and will not prepare any prospectus for the purpose of the initial public offering of securities. Any decision to purchase, subscribe or sell for securities will have to be made independently of this Presentation. Therefore, nothing in this Presentation shall create any binding obligation or liability on the Company and its affiliates and any of their advisors or representatives.
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• The information and opinions contained in this document are provided as at the date hereof and are subject to change without notice. The recipient will be solely responsible for conducting its own assessment of the information set out in the Presentation. Neither the Company and its affiliates, nor any of their advisors or representatives shall be obliged to furnish or to update any information or to notify or to correct any inaccuracies in any information. Neither the Company and its affiliates, nor any of their advisors or representatives shall have any liability to the recipient or to any of its representatives as a result of the use of or reliance upon the information contained in this document.
• Certain Information may contain forward-looking statements which involve risks and uncertainties and are subject to change. In some cases, these forward-looking statements can be identified by the use of words such as "believe", "anticipate", "estimate", "target", "potential", "expect", "intend", "predict", "project", "could", "should", "may", "will", "plan", "aim", "seek" and similar expressions. The forecasts and forward-looking statements included in this document are necessarily based upon a number of assumptions and estimates that are inherently subject to significant business, operational, economic and competitive uncertainties and contingencies as well as assumptions with respect to future business decisions that are subject to change. By their nature, forward-looking statements involve known and unknown risks and uncertainties, because they relate to events, and depend on circumstances, that may or may not occur in the future. Furthermore, actual results may differ materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside of the Company's control and cannot be estimated in advance, such as the future economic environment and the actions of competitors and others involved on the market. These forward-looking statements speak only as at the date of this Presentation. The Company cautions you that forward looking-statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may differ materially from those made in or suggested by the forward-looking statements contained in this Presentation. In addition, even if the Company's financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements contained in this Presentation, those results or developments may not be indicative of results or developments in future periods. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
• By receiving this Presentation, you acknowledge and agree to be bound by the foregoing terms, conditions, limitations and restrictions.

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

The market in which Alkemy insists is the digital transformation market which today is worth over 6 billion euros in Italy and grows at a rate of 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 2020.

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 150 and 440%.

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

650 650 › 8 acquisitions completed since our foundation, aggregating new skills and capabilities

› Over the course of just 8 years, we have reached the industrial scale to capture the opportunities of our evolving market

ALKEMY OVER THE YEARS – A STORY OF GROWTH A STORY OF PEOPLE, ACQUISTIONS, GEOGRAPHY EXPANSION AND GROWING REVENUES

› Alkemy is best positioned player in the Digital Transformation Market, expected to accelerate in the post-COVID-19 scenario.

Industrialization of Business Model

OUR OFFICES

DESIGN

Activities aimed at planning, designing and implementing the companies' brand experience, in a totally integrated way

Activities based on the Design Thinking approach and aimed at creating value through the design of: Physical and digital products, Destinations and spaces where people and brands can share meaningful experiences

WE OWN ALL THE COMPETENCIES TO DESIGN & IMPLEMENT BUSINESS TRANSFORMATION PROJECTS

DIGITAL TRANSFORMATION MEANS COMPLETELY REDESIGNING THE BUSINESS MODEL OF A COMPANY TO BE ABLE TO CAPTURE FULL VALUE OF DIGITAL

DEGREE OF DIGITAL MATURITY

Alkemy reference market size in Italy (2017-2023, €M)

8 (1) Digital & Innovation consulting only

THE REFERENCE MARKET IN ITALY IS WORTH 6B€ AND IT IS GROWING AT A ~10% RATE; COVID-19 EMERGENCY HAS GIVEN A FURTHER INPUT TO EVOLVE BUSINESS MODELS TOWARD DIGITAL CHANNELS AND PROCESSES

REFERENCE MARKET IN THE COVERED GEOGRAPHIES IS WORTH ~14B€, POSITIVE GROWTH RATES ARE EXPECTED IN ALL COUNTIRES

Source: Alkemy analysis on su industry reports; Note: (1) it does not include «Product & Space Design»; (2) it includes: Slovenia, Croatia, Bosnia H., Serbia, North Macedonia, Montenegro

Source: Alkemy analysis on official Annual Reports and press releases of the mentioned companies – 2017/2019

Traditional

• › Alkemy is already the local player of reference for the digital transformation.
• › Alkemy has developed a unique positioning by interlocutor (the CEO) and by breadth of offer (from strategy to execution).

Alkemy Positioning

Similar players in more mature markets

Player		Ownership	Turnover– M€
	US	Accenture	~8,700
	US	Deloitte	~2,500
	IT	Reply	~1,180
	UK	Publicis Groupe	~ 900
	AR	Public	~ 660
	US	Interpublic	~350
	UK	WPP	~300

IN THIS MARKET, ALKEMY HAS DEVELOPED A UNIQUE POSITIONING, BECOMING ALREADY THE LOCAL REFERENCE PLAYER FOR THE DIGITAL TRANSFORMATION

Digital

WORKING WITH THE LARGEST COMPANIES ACROSS INDUSTRIES

PROJECT	PHYSICAL & DIGITAL CUSTOMER EXPERIENCE (2019 – Ongoing)	INGREDIENTS
PROJECT & CONTEXT OBJECTIVES	A new library in the UAE designed by an award-winning architectural design and engineering firm was commissioned to be an innovative destination for current and future generations The architectural project needed to be integrated with a series of experiences, interiors, touchpoints and service design to achieve such ambitious goal
ALKEMY & APPROACH MAIN ACTIVITIES	Alkemy and DGI worked together to address this challenge by building a multidisciplinary team that would work on different aspects of the project: - Define a project plan together with the different international stakeholders involved - Execute design research activities on desk and on field including: • benchmarking of comparable places and experiences offered internationally • experience trends • contextual observations, interviews with locals, experts and stakeholders definition of personas and customer journey to-be • • definition of the general concept and vision of the new library, including the proposal of new services and experiences to implement - Design of the physical and digital solutions and touchpoints, including technical requirements and specifics - Design of the spatial experiences, flows and activities to offer - Recommendations on the service business models and preliminary
	guidelines for the governance of the proposed experiences, services and spaces

Design a unique interactive customer experience for a new library in Gcc

Digital and physical solutions concept and design

Experience journey mapping

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Contextual observation, interviews and synthesis

BUSINESS CASE: HOUSE OF WISDOM

TARGET COMPANY	ACTIVITY	M&A YEAR
	Digital Marketing	2013	5.0
	System Integration	2015	1.8
	Content Marketing	2016	2.6
	Data Analytics	2018	2.7
	Digital Marketing	2018	1.7
	Products & Spaces Design	2019	1.2
	Salesforce Gold Partner	2021	n. a.

ALKEMY SUCCESSFULLY USED THE M&A LEVER, AND THE EBITDA GROWTH OF THE ACQUISITIONS COMPLETED FROM 2013 TO 2020 WAS BETWEEN 70 AND 500%

EBITDA MULTIPLE *
5.0
1.8
2.6
2.7
1.2
n. a.

Ebitda multiple at 2020, or last reported Ebitda before merger into Alkemy

FINANCIAL HIGHLIGHTS

€M	1H 2021	1H 2020
Turnover	44.5	37.1	+20% vs.1H 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	5.0	2.9	+72% vs.1H 2020, thanks to the better mix and efficiencies > arising from the new organization. EBITDA margin up by +3pps
EBIT	3.2	1.7	+85% vs. 1H 2020, thanks to the better operating result. EBIT > margin up by +2.6 pps
EBT	2.6	1.2	+124% vs. 1H 2020, thanks to the better performance over > the period
Group Net Income	1.6	0.6	+145% vs. 1H 2020, thanks to the better operative result and > to the efficiencies arising from the new organization
Operating Cash Flow	3.9	3.4	Increase of €M 0.5 compared to 1H 2020 mainly thanks to > the better operating result and cash release from Net Trade Working Capital
NFP	-24.1	FY 2020 -12.4	€M -11.7 since 31 December 2020 of mostly related to the > change in the Group's perimeter

1H REVENUES(€M) – IAS /IFRS

REVENUES

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

ALKEMY INTERNATIONAL TURNOVER(%)

› 1H 2021 revenues at €M44.5, +20% compared to 1H 2020 which were €M37.1.

› 1H 2021 Italian turnover is €M 30.4 up by 10% compared to €27.6 M in 1H 2020. The growth is mainly organic, thanks to the new Go-to-Market strategy, the holding of current customers and the acquisition of new contracts and

• 16% of organic growth.
• customers.
• COVID-19 related turnover decline in 2020.

› International revenues in 1H 2021 at €M 14.1, up by 49% vs. €M 9.5 in 1H 2020, mainly thanks to Spain and Mexico subsidiaries, which are recovering from

FY REVENUES (€M) – IAS /IFRS (1)

DOUBLE DIGIT ORGANIC GROWTH

1H ALKEMY Adj. EBITDA(€M) – IAS/IFRS

(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

Adj. EBITDA CONSISTENT IMPROVEMENT IN MARGINALITY

• › 1H 2021 Adj. EBITDA is €M 5.0, +72% compared to 1H 2020 of €M 2.9, thanks to the better mix of the new Go-to-Market strategy and the efficiency and razionalization of the new organization.
• › EBITDA Margin is 11% in 1H 2021 vs 8% in 1H 2020 with an increase of 3 pps, thanks to lower operative costs impact on revenues (-3.4 pps), achieved through to the industrialization process started in 2020
• › EBITDA Margin net media is 13.6% in 1H 2021 vs. 9.1% in 1H 2020

GROWTH 20-21 +72% 1,6 2,2 2,7 2,9 5,0 1H 2017 1H 2018 1H 2019 1H 2020 1H 2021 6,6%

17

NET FINANCIAL POSITION BRIDGE AND DETAILS

• › Net Financial Position NFP (2) at June 30th 2021 decreased by €M 11.7 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 liquidity on bank accounts(€M -3.5) due to the two acquisitions, treasury shares buyback and dividends paid to minorities, (ii)decrease in bank loans (€M +1.8), (iii) IFRS 16 impact due to change in Group perimeter (€M -3.0), (iv) increase in put options liabilities due to the acquisition of the period (€M -7.3).

› Gross debt is composed by €M 14.5 of financial debt (of which €M 10.2 LT, €M4.3 ST), €M 19.31 put options lliabilities deriving from M&A (of which €M 7.4 ST) and €M 6.1 IFRS16

› 1H 2021 NFP (1) ex IFRS16 is €M 18.0

› 1H 2021 cash and equivalents is €M 15.9

Net Financial Position Break Down 1H 2021 (€M)

18

NET TRADE WORKING CAPITAL DYNAMICS

A GREAT OPPORTUNITY FOR ALKEMY

• Solid Market - Alkemy operates in a fast-growing market which only in Italy is worth over 6B€, and which generates half-billion of new business every year, and where the recent Covid-19 crisis has put further pressure for

• Leadership Positioning - Alkemy has developed a unique positioning with a fully integrated offering able to guide companies across all the phases of the Digital Transformation process.

• Margin Expansion – Since 2020, Alkemy started a process of industrialization aimed at increasing marginality, using

• companies to invest.
• three different levers:

• learning,…).

• Increased gross margin through higher efficiency (working on productivity, saturation and synergies); 2. G&A scalabilty thanks to business growth;

• New Go-to-Market, focused on bigger projects with higher marginality.

• Consolidation Opportunity - Over the years Alkemy has acted as aggregator in the market, which is still very fragmented and there are several local excellences that can be integrated in value (cybersecurity, machine

(1) Lappentrop Srl belongs to Alessandro Mattiacci (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	Mara 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.

1H 2021 P&L – IAS/IFRS

› 1H 2021 Revenues at €M 44.5, up by 20% compared to €M 37.1 of 1H 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 10% yoy, related just for a limited extent to the acquisitions of the majority stake in DGI (consolidated for one month) and XCC (consolidated for three months), and it is mainly the result of the new Go-to-Market strategy, the holding of current customers and the acquisition of new contracts and customers . Foreign turnover up by 49%, mainly thanks to Spain and Mexico subsidiaries, which recovered from Covid-19 related loss in turnover in 1H

› Operative costs decreased reduced the impact on revenues by 3.4 pps compared to 1H 2020. Services costs increased by 11% yoy, but reduced the impact on revenues by 4 pps. This efficiency is mostly achieved thanks to the actions taken to internalize tech activities. Personnel costs increased incidence on revenues by 1 pp compared to 1H 2020, attributable to the higher FTE for the period (from 518 in 1H 2020 to 590 in 1H 2021), as a confirmation of the positive expectations of management on future

• 2020.
• business performances.

› 1H 2021 Adj. EBITDA at €M 5.0 +72% compared to €M 2.9 in 1H 2020, with a margin increase of 3 pps (EBITDA margin 11%). EBIT is equal to €M 3.2 +85% compared to €M 1.7 in 1H 2020, with an increase of 2.6 pps in EBIT margin.

› EBT at €M 2.6. 1H 2021, +124% compared to €M 1.2 in 1H 2020. Group Net Profit is €M 1.6 +145% vs €M 0.6 in 1H 2020. 22

Consolidated Profit & Loss

Profit and Loss (€000) - IAS/IFRS	1H 2020	1H 2021
Revenues	37.115	44.549
Service costs, consum. & goods	(20.036)	(22.211)
Personnel	(14.154)	(18.152)
EBITDA	2.925	4.186
% Revenues	7,9%	9,4%
Non recurrent costs	0	(855)
Adj. EBITDA	2.925	5.041
% Revenues	7,9%	11,3%
D&A	(858)	(1.005)
Bad debts/ claims/ provisions	(348)	(3)
EBIT	1.719	3.178
% Revenues	4,6%	7,1%
Financial charges	(557)	(580)
EBT	1.162	2.598
Taxes	(518)	(1.022)
% Tax rate	44,6%	39,3%
Net Profit (Loss)	644	1.576
o/w Minorities	(11)	18
o/w Group Net Profit (Loss)	655	1.558

1H 2021 BALANCE SHEET – IAS/ IFRS

› Net Invested Capital at €M 57.1 (€M 44.0 at FY 2020) and consisted of approx. € 17.5 million of Net Trade Working Capital (€M 16.4 FY 2020), €M 53.0 of fixed assets (€M 41.0 FY 2020) of which €M 41.2 of Goodwill (32.0 in FY 2020) and €M 6.0 of IFRS 16 rights of use (3.1 in FY

• 2020).

› Shareholders' equity increased in the period by €M 1.2 since 31 dec. 2020 (+4%), mainly thanks to the positive result of the period (€M +1.6), the increase of LTIP reserve (€M +0.6), the dividends paid to minorities (€M -0.7), and treasury shares buyback (€M –0.5).

› Net Financial Position at June 30th 2021 negative for €M -24.1 (ante-IFRS 16 at €M -18.0) with decreasing by €M -11.7 compared to FY 2020, mainly due to the change in the Group perimeter. More specifically the variation is mainly due to: decrease in liquidity on bank accounts (€M -3.5), due to (i) the two acquisitions, (ii) treasury shares buyback, (iii) dividends paid to minorities; decrease in bank loans (€M +1.8); IFRS 16 impact due to change in Group perimeter (€M -3.0); increase in put options liabilities due to the two acquisitions of the period (€M -7.3).

Consolidated Balance Sheet

Balance Sheet (€000) - IAS/IFRS FY 2020 1H 2021

Total Funds	43.774	57.077
Net Debt (Cash)	12.378	24.497
Other Financial Debts (IFRS16)	3.191	6.108
Put Option Liabilities	12.038	19.316
Bank Debts	16.071	14.544
Cash & current financial assets	(18.922)	(15.471)
o/w Minorities	254	272
o/w Group Equity	31.142	32.308
Total Equity	31.396	32.580
Total Capital Invested	43.774	57.077
Employees' leaving entitlement	(5.087)	(6.248)
Other Current Liabilities	(12.579)	(11.677)
Other Current Assets	4.207	4.584
Net Trade Working Capital	16.356	17.500
Trade Payables	(14.688)	(13.437)
Trade Receivables	31.044	30.937
Inventories	0	0
Financial assets Fixed Assets	1.174 40.877	5 52.918
Goodwill	31.755	41.250
o/w rights of use (IFRS16)	3.122	6.007
Intagible assets	7.093	10.455

1H 2021 CASH FLOW GENERATION – IAS/IFRS

› 1H 2021 Gross Cash Flow at €M 4.6, compared to €M 3.3 in 1H 2020. The increase yoy is mostly due to higher positive result of the period.

› 1H 2021 Operating cash flow at €M 3.9 compared to €M 3.4 of 1H 2020. The positive variation is mostly due to the better operating result of the period and to cash release from Net trade working capital dynamics,

› Ordinary Capex of the period is 5.0x higher than 1H 2020, and it's mostly related to hardware equipment for the Group. 1H 2021 Free Cash Flow before Acquisitions is equal to €M 3.3, mostly stable compared to €M 3.3

› 1H 2021 Free Cash Flow is €M 1.1, compared to €M 3.1 in 1H 2020. The variation is related to the acquisition of the majority stake in DGI S.r.l, and

• thanks to DSO decrease.
• in 1H 2020.
• in XCC S.r.l. in the period (€M -2.2).
• 0.5).

› Total change in cash for the period was €M -3.5 compared to €M 4.3 in 1H 2020. Cash decrease is mostly due to the decrease in financial debts (€M -2.5), dividends to minorities (€M -1.0), treasury shares buyback (€M -

Consolidated Cash Flow

Cash Flow Statement (€000) - IAS/IFRS	1H 2020	1H 2021
Net Profit (Loss)	644	1.576
Adjustments (cash tax, interest and other)	1.075	1.602
Non cash items	1.566	1.398
Gross Cash Flow	3.285	4.576
Change in inventories	31	0
Change in trade receivables	3.868	3.565
Change in trade payables	(4.233)	(1.443)
Total change in NTWC	(334)	2.122
Total change in other asset/liabilities	435	(2.833)
Operating Cash Flow	3.386	3.865
Capex	(115)	(562)
Free Cash Flow before Acquisition	3.271	3.303
Acquisitions and other financial assets	(126)	(2.175)
Free Cash Flow	3.145	1.128
Change in treasury shares	0	(456)
Dividends to minorities	(334)	(1.023)
Change in bank & fin. Debts	2.051	(2.500)
IFRS 16 effect	(480)	(600)
Changes in equity	0	0
Change in put/option	(90)	0
Change in Cash	4.292	(3.451)
Initial Cash	9.581	18.840
Final Cash	13.873	15.389

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