ENABLING EVOLUTION

March, 2021 – STAR conference

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.
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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 about 74.8M€.

In these 8 years, Alkemy has successfully used the M&A lever (7 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

STRATEGY COMMUNICATION PERFORMANCE TECH DATA & ANALYTICS

Digital check-up
Digital_enabling strategy
Omnichannel strategy
eCommerce entry strategy & full potential
CRM Strategy
Advanced Business Analytics & Big data
Industry 4.0 diagnostic & accelerator
Industrial plan and Due Diligence in digital industry
Innovation Gateway
Digital Organization & Governance

DESIGN

Brand strategy & Creativity Brand planning Communication plans Off-online campaigns Video Strategy and Production Branded Magazines Native Advertising Corporate Content

Social Media

Social Media strategy & management Influencer marketing Digital Reputation strategy

User Experience (UX) & User Interface (UI)

Websites and Apps

Service innovation

Product

Experiential Spaces
Brand activations
Product engineering
Prototyping

Media Strategy & Planning Integrated channel planning Digital Marketing Mix Media Strategy Optimization Programmatic Buying Media Buying across channel

Performance Marketing

SEO

Link Acquisition

Paid Search

Retargeting

Content Distribution & Optimization

Social Ads

Conversion Rate Optimization (CRO)

Advanced Analytics & Predictive Modeling

Real-time next best action

Omnichannel solutions
Internet of Things
CRMs
CMSs Portals
eCommerce		optimization
Apps		Data Environment
AI		Management

Digital Customer Intelligence

Customer Experience

Data Environment design & implementation

Integrated Customer Value

Forecasting and Survival Data Mining

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

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

Alkemy's reference market1

Value of Alkemy reference market, 2019, data in €B

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

(1) Digital & Innovation consulting only

THE COVID-19 EMERGENCY IS FORCING ITALIAN COMPANIES TO EVOLVE BUSINESS MODELS TOWARD DIGITAL CHANNELS AND PROCESSES, INCREASING DEMAND

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

	Ownership	Turnover– M€
US	Accenture	~8,700
US	Deloitte	~2,500
IT	Reply	~1,180
UK	Publicis Groupe	~ 900
AR	Globant	~ 660
US	R/GA	~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

Digital and physical solutions concept and design

Design a unique interactive customer experience for a new library in Gcc BUSINESS CASE: HOUSE OF WISDOM

Experience journey mapping

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Contextual observation, interviews and synthesis

S C D P T A

ALKEMY SUCCESSFULLY USED THE M&A LEVER, AND THE EBITDA GROWTH OF THE 4 ACQUISITIONS COMPLETED IN ITALY FROM 2013 TO 2018 WAS BETWEEN 150 AND 440%

ACTIVITY	M&A YEAR	EBITDA AT M&A (€M)	LAST REPORTED EBITDA	MUTIPLE
Performance marketing	2013	0.22	2017 0,97	4.4x
System integration	2015	1.42	2017 2,13	1.5x
Content marketing & native adv	2016	0.63	2019 1,47	2.3x
Data Analysis/ Big data	2018	1.08 PF	2019 1,88	1.7x
Consulting / Performance	2018	1.57	2019 2018	1.4x

› Alkemy has a successful track record in integrating acquired companies thanks to revenues synergies
› The growth of target companies' EBITDA is driven by deploying their excellent capabilities on Alkemy's clients
› Including the other 3 acquisitions made abroad (GO Spain / Mexico, Kreativa Serbia) the total amount of capital invested was ~ 30M (between cash and equity), the multiple paid, up to the last acquisition in July 2019, it has always been counterdiluting.

FY 2020 – RESILIENCY OF BUSINESS MODEL

Adj. EBITDA up >23% compared to FY 2019
Improvement in marginality compared to FY 2019 (EBITDA margin 8.3% vs 6.0%)
Resiliency of TIER 1 and TIER 2 customers (+10% ARPC)
Positive group result of €M 1.8
Strong cash generation over the period (€M 9.6 operative cash flow)
Improvement of NFP of €M +6.7

Focus on the industrialization of its business model to strengthen marginality and business resiliency

FY 2020 MAIN ACHIEVEMENTS

FINANCIAL HIGHLIGHTS

€M	FY 2020	FY 2019
Turnover	74.9	84.5	-11% compared to FY 2019, mostly due to the Mexican > company, exposed to travel and leisure sector, highly effected by COVID-19
Adj. EBITDA	6.2	5.0	+ 23% compared to FY 2019, thanks to the better mix and > efficiencies arising from the new organization. Adj. EBITDA margin up by + 2.3 pps
EBIT	3.1	1.4	+123% compared to FY 2019, thanks to the better operating > result. EBIT margin up by +2.5 pps
EBT	2.5	0.2	More than 10x compared to FY 2019, thanks to the better > performance over the period. EBT margin up by +3 pps
Group Net Income	1.8	(0.1)	Thanks to better operating results, mostly of Italian > companies
Operating Cash Flow	9.6	1.6	Increase of €M 8 compared to FY 2019 mainly due to the > better operating result and the lower absorption of NWC
NFP	-12.5	-19.2	Positive variation since 31 December 2019 of €M 6.7 mostly > due to: €M +9.3 increase in cash liquidity, €M +1.3 decrease

16 > Positive variation since 31 December 2019 of €M 6.7 mostly due to: €M +9.3 increase in cash liquidity, €M +1.3 decrease in put options, €M –3.8 increase in financial debt

ALKEMY REVENUES(€M) – IAS /IFRS(1)

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

ALKEMY INTERNATIONAL TURNOVER(%)

› FY 2020 revenues are €M 74.9 -11.4% vs. €M 84.5 in FY 2019, mostly due to the Mexican subsidiary, exposed to travel & leisure sector, highly

effected by COVID-19 emergency

› FY 2020 Italian turnover is 71% of total vs. 68% in FY 2019, showing more resiliency compared to foreign subsidiaries, thanks to the new Go-to-Market strategy, strongly focused on main clients, which over performed over the period: Top 50 clients increased ARPC by 10%

ORGANIC VS. ACQUISITIONS REVENUES (€M) – IAS /IFRS (1)

REVENUES

ALKEMY ADJ. EBITDA(€M) – IAS/IFRS(1)

(1)Ebitda 2014-15-16 are Management estimates and are not audited because of introduction of 2017 IFRS. 2017 Ebitda is net of AIM listing costs

ADJ. EBITDA MARGIN ex Media (Spain & Latam)(2)

› Part of revenues coming from the integration of Ontwice Group (Spanish and Mexican markets, consolidated since H2 2018) is related to Media (i.e. purchase and sale of Digital media spaces) which is structurally a pass through business

› This effect had a negative impact on EBITDA margin of 1.4 pps. EBITDA margin ex Media is estimated to be 9.7%(2) in FY 2020 compared to 7.4%(2) in FY 2019

› FY 2020 Adj. EBITDA is €M 6.2 +23% compared to €M 5.0 in FY 2019. The strong increase is mainly achieved thanks to the efficiency arising from the new organization and the better mix, and the new Go-to-Market strategy focused on more profitable projects
› FY 2020 Adj. EBITDA is about 8.3% vs. 6.0% in FY 2019 with an increase of 2.3 pps, due to structural lower costs impact on revenues, thanks to the industrialization process started in 2020

8,7%

Adj. EBITDA

Net Financial Position Bridge FY2020 (€M)

NET FINANCIAL POSITION BRIDGE AND BREAK DOWN

› Net Financial Position NFP (2) at December 31st 2020 was €M -12.5 with an improvement of €M 6.7 compared to €M -19.2 at December 31st, 2019
› Variation mainly due to: increase in liquidity on bank accounts (€M +9.3), increase in non current bank loans (€M -2.5), increase in current bank loans (€M -2.1), redetermination of put options value (€M +1.3), decrease of leasing financial debt (IFRS 16) (€M +0.8).

› Gross debt is composed by €M 16.1 of financial debt (of which €M 11.4 non current, €M4.6 current), €M 12.0 put options deriving from M&A (of which €M 3.1 non current) and €M 3.2 IFRS16 financial leases

› FY 2020 NFP (1) ex IFRS16 is €M 9.3

› FY 2020 cash is €M 18.8

Net Financial Position Break Down FY 2020 (€M)

16,1

A GREAT OPPORTUNITY FOR ALKEMY

› Solid Market - Alkemy operates in a fast growing market which only in Italy is worth over 6 billion euros, and which generates half-billion of new business every year

› Leadership Positioning - Alkemy has developed a unique positioning with a fully integrated offering able to guide all companies through the Digital Transformation process

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

learning,…)

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.

FY 2020 P&L – IAS/IFRS

Consolidated Profit & Loss

› FY 2020 Revenues at €M 74.9, down by 11% compared to €M 85.2 of FY 2019. The decrease is mostly attributable to the foreign subsidiaries who underperformed in the period (-21%), especially in Mexico where the contraction of revenues is due to high exposure to travel & leisure customers, while in Spain turnover completely recovered by the end of 2020. Italian turnover is down by 7%, mostly due to lower tax credit and incentives for R&D projects over the period. Italian core business mostly stable, with an increase in top 50 clients' ARPC of 10%.

› Operative costs decreased by -13.5% yoy, reducing the impact on revenues by 2.3% compared to FY 2019. Services costs decreased by 20% yoy. This efficiency is mostly achieved thanks to the actions taken to internalize tech activities. Personnel costs is mostly stable, with a decrease of 2.2% compared to FY 2019, attributable to the rationalization of the new organization in the Italian companies, while there has not been use of any temporary layoffs nor other unemployment benefits.

› FY 2020 Adj. EBITDA at €M 6.2 +23% compared to €M 5.0 in FY 2019, with a margin increase of 2.3 pps (EBITDA margin 8.3%). EBIT is equal to €M 3.1 +123% higher than €M 1.4 in FY 2019, with an increase of 2.5 pps in EBIT

margin.
2019.

› Financial charges decreased from €M 1.2 in FY 2019 to €M 0.7 in FY 2020. EBT €M 2.5 vs. €M 0.2 in FY 2019. Group Net Profit is €M 1.8 vs €M -0.1 in FY

Profit and Loss (€000) - IAS/IFRS	FY 2019	FY 2020
Revenues	84.520	74.932
Service costs, consum. & goods	(51.404)	(40.100)
Personnel	(29.635)	(28.861)
EBITDA	3.481	5.971
% Revenues	4,1%	8,0%
Non recurrent costs	(1.549)	(224)
Adj. EBITDA	5.030	6.195
% Revenues	6,0%	8,3%
D&A	(1.738)	(1.749)
Bad debts/ claims/ provisions	(336)	(1.077)
EBIT	1.407	3.145
% Revenues	1,7%	4,2%
Financial charges	(1.161)	(601)
EBT	246	2.544
Taxes	(486)	(722)
% Tax rate	197,6%	28,4%
Net Profit (Loss)	(240)	1.822

o/w Minorities	(101)	30
o/w Group Net Profit (Loss)	(139)	1.792

FY 2020 BALANCE SHEET – IAS/ IFRS

Consolidated Balance Sheet

Balance Sheet (€000) - IAS/IFRS	FY 2019	FY 2020
Tangible assets	980	855
Intagible assets	7.801	7.093
o/w rights of use (IFRS16)	3.907	3.122
Goodwill	31.752	31.755
Financial assets	1.078	1.174
Fixed Assets	41.611	40.877
Inventories	61	0
Trade Receivables	31.791	31.044
Trade Payables	(17.142)	(14.688)
Net Trade Working Capital	14.710	16.356
Other Current Assets	8.931	4.289
Other Current Liabilities	(9.790)	(12.579)
Employees' leaving entitlement	(4.356)	(5.087)
Total Capital Invested	51.106	43.856

Total Equity	31.897	31.396
o/w Group Equity	31.723	31.142
o/w Minorities	174	254
Cash	(9.581)	(18.840)
Bank Debts	11.501	16.071
Put Option Liabilities	13.342	12.038
Other Financial Debts (IFRS16)	3.947	3.191
Net Debt (Cash)	19.209	12.460
Total Funds	51.106	43.856

› Net Invested Capital at €M 43.9 (€M 51.1 at FY 2019) and consisted of approx. € 8.1 million of Net Working Capital (€M 13.8 FY2019), €M 40.9 of fixed assets (€M 41.6 FY2019) of which €M 31.8 of Goodwill and €M 3.1 of rights of use (IFRS 16), and €M 5.1 of final Employees' leaving entitlement (€M 4.3

› Shareholders' equity decreased in the period by €M 0.5 since FY 2019 (-1.6%), mainly due to dividends to minorities and the buyback of treasury shares carried out over the course of 2020, partly compensated by the FY 2020 Net Profit

FY2019)
of put options.

› Net Financial Position at December 31st 2020 negative for €M -12.5 (ante-IFRS 16 at €M -9.3) compared to the negative Net Financial Position at 31 December 2019, which was €M -19.2. The variation is mainly due to positive cash generation over the year resulting in higher cash position and lower valuation

FY 2020 CASH FLOW GENERATION – IAS/IFRS

› FY 2020 Gross Cash Flow at €M 5.7, compared to €M 2.8 of FY 2019. The increase yoy is mostly due to the higher result of the period and higher non-cash items.

› FY 2020 Operating cash flow at €M 9.6 compared to €M 1.6 of FY 2019. The positive variation is mostly due to the better operating result and the lower absorption of the Working capital (other assets/liabilities referred to inflows from 2019 tax credit for R&D projects) compared to FY 2019.

› Ordinary Capex of the period are 44% lower than FY 2019. FY 2020 Free Cash Flow before Acquisitions is equal to €M 9.3, compared to €M 1.1 of FY 2019.

› FY 2020 Free Cash Flow is €M 9.2, showing a strong improvement

compared to FY 2019 €M -0.3.
0.5 in FY 2019.

› Total change in cash for the period was €M 9.3 compared to €M -

Consolidated Cash Flow

Cash Flow Statement (€000) - IAS/IFRS	FY 2019	FY 2020
Net Profit (Loss)	(240)	1.822
Adjustments (cash tax, interest and other)	573	462
Non cash items	2.457	3.390
Gross Cash Flow	2.790	5.674
Change in inventories	79	61
Change in trade receivables	592	244
Change in trade payables	(1.161)	(2.540)
Total change in NTWC	(490)	(2.235)
Total change in other asset/liabilities	(651)	6.145
Operating Cash Flow	1.649	9.584
Capex	(580)	(325)
Free Cash Flow before Acquisition	1.069	9.259
Other fixed assets	(1.328)	(91)
Free Cash Flow	(259)	9.168
Change in treasury shares	(581)	(181)
Dividends to minorities	(668)	(667)
Change in bank & fin. Debts	8.934	4.542
IFRS 16 effect	(1.119)	(950)
Changes in equity	969	0
Change in put/option	(7.794)	(2.652)
Change in Cash	(518)	9.260

Initial Cash	10.098	9.581
Final Cash	9.580	18.841

NET TRADE WORKING CAPITAL DYNAMICS

FY 2020 Trade working capital over revenues was higher compared to history
The cash outflow from Net Trade Working Capital increase (€ -2.2 million) was more than 4 times higher in comparison to FY 2019, due to payables dynamics
Strong improvement in other current assets contributes to NWC inflow in FY 2020. The driver of this improvement was inflow from 2019 public financing and 2019 tax credit

Cash Conversion Cycle Details (days)

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