Alkemy — Investor Presentation 2021

Sep 13, 2021

1H 2021 RESULTS

13.09.2021

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.
• 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

1H 2021 – DOUBLE DIGIT ORGANIC GROWTH AND EBITDA MARGIN

• Double digit organic growth, up by +16% compared to 1H 2020

• Further improvement in marginality compared to 1H 2020 (+3pps)

• New Business activity & growth of TOP 50 clients' revenues

• Positive cash generation over the period (€M 3.9 operative cash flow)

• Positive Group Result of €M 1.6

The industrialization of business model strengthens marginality and boosts organic growth

1H 2021

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

› 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

• customers.
• COVID-19 related turnover decline in 2020.

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

-0,1

1

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

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)

10

NET TRADE WORKING CAPITAL DYNAMICS

• 1H 2021 Net Trade Working capital is 19% higher than 1H 2020, due to higher revenues growth in the period.

• Cash release from Net Trade Working Capital decrease (€M +2.2 million) compared to €M -0.3 in 1H 2020, thanks to payables and receivables dynamics

• 1H 2021 DSO at 106 -6% vs. 1H 2020; 1H 2021 DPO -7% vs. 1H 2020

Net Trade Working Capital (€M)

Cash Conversion Cycle Details (days)

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. 11

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
Trade Payables Net Trade Working Capital	(14.688) 16.356	(13.437) 17.500
Trade Receivables	31.044	30.937
Inventories	0	0
Fixed Assets	40.877	52.918
Financial assets	1.174	5
Goodwill	31.755	41.250
o/w rights of use (IFRS16)	3.122	6.007
Intagible assets	7.093	10.455
Tangible assets	855	1.208

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

OUTLOOK

• The evolution of management expected during the second half of 2021 will depend mainly on exogenous factors related, as a priority, to the completion of the vaccination plan, as the only effective solution to overcome the difficulties generated by the pandemic and confirm the economic recovery of the country, and therefore the resilience of client companies, government support in support of the economy in general and investments in the digitalization of companies.

• Taking into account the results achieved in 1H 2021, the business current trading, except for the occurrence of further aggravating events that are not always foreseeable (ie resumption of infections with spread of further pandemic variants, with possible new lockdowns, delays in the vaccination plan), it is confirmed that the Group's expectation is to resume the path of organic growth, both in terms of revenues and above all margins, benefiting both from the rationalization and efficiency work carried out in the previous year, and from the new organization of the national companies.

(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.

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