1Q 2021 RESULTS

14.05.2021

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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

1Q 2021 – BACK TO ORGANIC GROWTH AND MARGIN EXPANSION

Organic growth back to positive, up by +7% compared to 1Q 2020
Strong improvement in marginality compared to 1Q 2020 (+8pps)
New Business activity & growth of TOP 50 clients' revenues
Positive cash generation over the period (€M 1.9 operative cash flow)
Positive Group Result of €M 0.5

The industrialization of business model strengthens marginality and boosts organic growth

1Q 2021

FINANCIAL HIGHLIGHTS

€M	1Q 2021	1Q 2020
Turnover	20.7	19.3	+7% compared to 1Q 2020, thanks to a first recovery of new > business activities, and the new Go-to-Market highly focused on main clients' projects
Adj. EBITDA	2.0	0.3	+532% compared to 1Q 2020, thanks to the better mix and > efficiencies arising from the new organization. EBITDA margin up by + 8 pps
EBIT	1.1	(0.1)	Strong growth compared to 1Q 2020, thanks to the better > operating result. EBIT margin up by +5.6 pps
EBT	0.8	(0.5)	Positive result compared to 1Q 2020, thanks to the better > performance over the period and lower financial charges
Group Net Income	0.5	(0.5)	The positive result is achieved thanks to the better > operative result and to the efficiencies arising from the new organization
Operating Cash Flow	1.9	(0.4)	Increase of €M 2.3 compared to 1Q 2020 mainly thanks to > the better operating result
NFP	-12.4	FY 2020 -12.4	Variation since 31 December 2020 of €M -0.01 mostly due > to: €M +0.7 in cash liquidity, €M +0.7 decrease in financial debt, €M – 1.4 increase in leasing (IFRS 16)

+7% compared to 1Q 2020, thanks to a first recovery of new business activities, and the new Go-to-Market highly focused on main clients' projects
+532% compared to 1Q 2020, thanks to the better mix and efficiencies arising from the new organization. EBITDA margin up by + 8 pps
- operating result. EBIT margin up by +5.6 pps
- performance over the period and lower financial charges
The positive result is achieved thanks to the better operative result and to the efficiencies arising from the new
- the better operating result
Variation since 31 December 2020 of €M -0.01 mostly due to: €M +0.7 in cash liquidity, €M +0.7 decrease in financial debt, €M – 1.4 increase in leasing (IFRS 16)

1Q 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.

› 1Q 2021 revenues are €M20.7, +7% compared to 1Q 2020 which were €M19.3,

› 1Q 2021 Italian turnover is €M 14.0 up by 4% compared to €13.5 M in 1Q 2020. Top 50 clients overperformed over the period. Recovery of New Business

going back to organic growth.
activity
Spain.

› International revenues in 1Q 2021 are €M 6.7, up by 14% vs. €M 5.8 in 1Q 2020, partially recovering from COVID-19 related decline in 2020, especially in

FY REVENUES (€M) – IAS /IFRS (1)

BACK TO ORGANIC GROWTH

1Q 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

1Q EBITDA MARGIN – EBITDA MARGIN NET MEDIA (%)(1)(2)

› 1Q 2021 EBITDA is €M2.00, +532% compared to 1Q 2020 of €M 0.3, thanks to the better mix of the new Go-to-Market strategy and the efficiency and razionalizati0n of the new organization.

Adj. EBITDA CONSISTENT IMPROVEMENT IN MARGINALITY

› EBITDA Margin is 9.6% in 1Q 2021 vs 1.6% in 1Q 2020 with a positive growth of 8 pps, thanks to lower costs impact on revenues, thanks to the industrialization process started in 2020
› EBITDA Margin net media is 11.4% in 1Q 2021 vs. 2.0% in 1Q 2020

FY ALKEMY Adj. EBITDA(€M) – IAS/IFRS

NET FINANCIAL POSITION BRIDGE AND DETAILS

Net Financial Position Bridge 1Q 2021 (€M)

NET TRADE WORKING CAPITAL DYNAMICS

1Q 2021 Net Trade Working capital 6% higher than 1Q 2020
The cash generation from Net Trade Working Capital decrease (€M +1.8 million) was more than 2 times higher in comparison to 1Q 2020, thanks to payables and receivables dynamics
1Q 2021 DSO -11% vs. 1Q 2020; 1Q 2021 DPO -29% vs. 1Q 2020

FY 2018 1H 2019 FY 2019 1Q 2020 1H 2020 9M 2020 FY 2020 1Q 2021

Cash Conversion Cycle Details (days)

1Q 2021 P&L – IAS/IFRS

› 1Q 2020 Revenues at €M 20.7, up by 7% compared to €M 19.3 of 1Q 2020. The increase is mostly attributable to the recovery of New Business activities and the strong focus on main clients. Italian revenues up by 4% yoy, mainly thanks to the new Go-to-Market strategy. Foreign turnover up by 14%, mainly thanks to Spain's subsidiary, which overperformed over the period compensating Mexico's slower recovery.

› Operative costs decreased by -0.5% yoy, reducing the impact on revenues by 6% compared to 1Q 2020. Services costs decreased by 10% yoy. This efficiency is mostly achieved thanks to the actions taken to internalize tech activities. Personnel costs increased incidence on revenues by 4% compared to 1Q 2020, attributable to the higher FTE for the period.

› 1Q 2021 Adj. EBITDA at €M 2.0 +532% compared to €M 0.3 in 1Q 2020, with a margin increase of 8 pps (EBITDA margin 9.6%). EBIT is equal to €M 1.1 higher than €M 0.1 in 1Q 2020, with an increase of 7.7 pps in EBIT margin.

› Financial charges decreased from €M 0.4 in 1Q 2020 to €M 0.2. in 1Q 2021 EBT positive for €M 8.4. 1Q 2021 Group Net Result is €M 0.5 vs €M -0.5 in 1Q

-

2020.

Consolidated Profit & Loss

Profit and Loss (€000) - IAS/IFRS	16 2020 1 0 202
Revenues	19.326	20.655
Service costs, consum. & goods	(11.885)	(10.677)
Personnel	(7.128)	(8.423)
EBITDA	313	1.555
% Revenues	1,6%	7,5%
Non recurrent costs	O	(424)
Adj. EBITDA	313	1.979
% Revenues	1,6%	9,6%
D&A	(413)	(445)
Bad debts/ claims/ provisions	(3)	(રક)
EBIT	(103)	1.051
% Revenues	-0,5%	5,1%
Financial charges	(423)	(210)
EBT	(526)	841
Taxes	(62)	(356)
% Tax rate	-11,8%	42,3%
Net Profit (Loss)	(288)	485

o/w Minorifies	(101)	(3)
o/w Group Net Profit (Loss)	(487)	488

1Q 2021 BALANCE SHEET – IAS/ IFRS

› Net Invested Capital at €M 44.3 (€M 44.0 at FY 2020) and consisted of approx. € 14.5 million of Net Trade Working Capital (€M 16.4 FY 2020), €M 42.1 of fixed assets (€M 41.0 FY 2020) of which €M 31.7 of Goodwill and €M 4.6 of rights of use (IFRS 16), and €M 5.1 of final Employees' leaving entitlement.

› Shareholders' equity increased in the period by €M 0.5 since 31 dec. 2020 (+1.6%), thanks to the positive result of the

period

› Net Financial Position at March 30th 2021 negative for €M - 12.4 (ante-IFRS 16 at €M -7.4) mostly stable compared to the negative Net Financial Position at 31 December 2020.

Consolidated Balance Sheet

Balance Sheet (€000) - IAS/IFRS	2020 Ter 2021
Tangible assets	855	865

Intagible assets	7.093	8.406
o/w rights of use (IFRS16)	3.122	4.555
Goodwill	31.755	31.754
Financial assets	1.174	1.095
Fixed Assets	40.877	42.120
Inventories	O	O
Trade Receivables	31.044	28.411
Trade Payables	(14.688)	(13.926)
Net Trade Working Capital	16.356	14.485
Other Current Assets	4.207	3.991
Other Current Liabilities	(12.579)	(11.203)
Employees' leaving entitlement	(5.087)	(5.108)
Total Capital Invested	43.774	44.285

Total Equity	31.396	31.895
o/w Group Equity	31.142	31.645
o/w Minorities	254	250
Cash & current financial assets	(18.922)	(19.676)
Bank Debts	16.071	15.336
Put Option Liabilities	12.038	12.093
Other Financial Debts (IFRS16)	3.191	4.637
Net Debt (Cash)	12.378	12.390
Total Funds	43.774	44.285

1Q 2021 CASH FLOW GENERATION – IAS/IFRS

› 1Q 2021 Gross Cash Flow at €M 1.7, compared to €M 0.5 in 1Q 2020. The increase yoy is mostly due to the positive result of the

› 1Q 2021 Operating cash flow at €M 1.9 compared to €M -0.4 of 1Q 2020. The positive variation is mostly due to the better

period.
operating result.

› Ordinary Capex of the period are 24% lower than 1Q 2020. 1Q 2021 Free Cash Flow before Acquisitions is equal to €M 1.8, compared to €M -0.5 of 1Q 2020.

› 1Q 2020 Free Cash Flow is €M 1.8, showing a strong improvement compared to 1Q 2020 €M -0.5.

› Total change in cash for the period was €M 0.8 compared to €M 1.4, mostly due to the decrease in financial debts.

Consolidated Cash Flow

Cash Flow Statement (€000) - IAS/IFRS	1Q 2020 1Q 2021
Net Profit (Loss)	(288)	485
Adjustments (cash tax, interest and other)	485	566
Non cash items	594	640
Gross Cash Flow	491	1.691
Change in inventories	31	O
Change in trade receivables	1.951	2.581
Change in trade payables	(1.127)	(762)
Total change in NTWC	855	1.819
Total change in other asset/liabilities	(1.736)	(1.618)
Operating Cash Flow	(390)	1.892
Capex	(103)	(135)
Free Cash Flow before Acquisition	(493)	1.757
Other financial assets	37	રેર
Free Cash Flow	(456)	1.813
Change in treasury shares	O	0
Dividends to minorities	(162)	0
Change in bank & fin. Debts	2.386	(789)
IFRS 16 effect	(230)	(270)
Changes in equity	O
Change in put/option	(90)	0
Change in Cash	1.448	754

Initial Cash	9.581	18.840
Final Crich	11 029	10 50 4

LOOKING AHEAD

In light of the positive trend of results achieved in the last months of 2020 and confirmed in the first quarter of 2021, considering the current size of orders and contracts portfolio and the general favorable progress of the business, barring the occurrence of further unforeseeable negative events related to the pandemic, management's expectation of a resumption of organic growth is confirmed, both in terms of revenues and mostly of margins.
The management expected, indeed, the full recovery of the New Business activity in the following months, which effects will be registered already in 2Q 2021, and to further benefit both from the rationalization work carried out in the previous year, and from the effectiveness and efficiency resulting from the new organization in Italy which has now become operational.
The new organization was assessed as the most suitable, on the one hand, to best respond to the expected evolution of the domestic market, and on the other, to strengthen business integration with both the new companies included in the Group such as XCC S.r.l. and Design Group Italia S.r.l.

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 [email protected] Alkemy enabling evolution

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