Alkemy

Investor Presentation • Mar 27, 2023

FY 2022 RESULTS

27.03.2023

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.

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 about 9% per year.

In this market, Alkemy has developed a differentiated positioning that has allowed it to grow with a CAGR of 30% (>3x the market), to move from the 23 starting resources to a team of over 900 people and a turnover of 107M€ in 2022.

Alkemy has successfully used the M&A lever (10 acquisitions) using the IPO proceeds in less than nine months, and the EBITDA growth of the four acquisitions made in Italy from 2013 to 2020 was up to +500%.

With a new organization and a dedicated Go-to-Market team Alkemy is now focusing on 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

FINANCIAL HIGHLIGHTS

€M	FY 2022	FY 2021
Turnover	106.6	95.2	+12% vs. FY 2021, mainly thanks to change in Group > perimeter.
Adj. EBITDA	11.8	10.5	+12% vs. FY 2021. EBITDA Adj. margin flat. >
EBIT	7.5	6.6	+13% vs. FY 2021. EBIT margin flat. >
EBT	7.1	5.8	+23% vs. FY 2021, thanks to the better performance over > the period and to the lower net financial charges.
Group Net Income	5.6	4.3	+31% vs. FY 2021, also thanks to lower tax rate mainly due > to one-offs (implementation of the fiscal consolidation in Italy and use of deferred tax assets)
Operating Cash Flow	5.3	7.4	-2.1 €M vs. FY 2021 mainly due to cash absorption by other > current assets/liabilities partially offset by the higher cash generation of the Net Working Capital and Net Profit.
NFP	-34.1	-21.2	€M -12.9 since 31 December 2021 mostly due to the M&A >

activities carried out in Q3 2022.

FY 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 & SPLIT BY INDUSTRY

› FY 2022 revenues at €M 106.6, +12% vs. FY 2021 (€M 95.2). The result is due mostly

› FY 2022 Italian turnover at €M 69.8, +9% vs. €64.0 M in FY 2021. The growth is mainly due to Group scope change and to the focus on existing clients.

› International revenues in FY 2022 at €M 36.7, up by 18% vs. €M 31.1 in FY 2021, mainly due to change in scope and significant growth in revenues generated by the Mexican subsidiaries, partly offset by the decline recorded by the Spanish

• to the Group perimeter change.
• subsidiaries' top line.
• 7% of group turnover respectively).

› Revenues generated by clients in the TMT and Consumer Goods & Retail are 46% of total turnover, followed by Financial Services and Energy & Utilities (13% and

ALKEMY GROWTH EVOLUTION (€000) – IAS /IFRS

Adj. EBITDA

• › FY 2022 Adj. EBITDA is €M 11.8, +12% compared to FY 2021 of €M 10.5.
• › EBITDA Adj. Margin¹ is 11.1% in FY 2022, in line with FY 2021.
• › Quarterly flattening trend of the Adj. EBITDA Margin successfully continues.

FY 2022 CASH FLOW

FY 2022 Cash Flow generation - (€000)

• › FY 2022 Gross Cash Flow at €M 11.6, +13% YoY thanks to higher positive result and non-cash adjustments.
• › FCFO at €M 5.3, equal to 45% of Adj. EBITDA, -29% compared to FY 2021.
• › Capex +31% compared to FY 2021 and equal to 2% of revenues.
• › Change in cash over 2022 is €M -1.3, mostly related to the change in the Group perimeter and to M&A put options payments occurred over the period.

Initial Cash	10.5 €M
Delta Cash	-1.3 €M
Final Cash	9.1 €M

Net Financial Position Bridge FY 2022 (€M)

NET FINANCIAL POSITION BRIDGE AND DETAILS

• › Net Financial Position NFP (2) at December 31st 2022 declined by €M 12.9 compared to €M -21.2 at December 31st , 2021.
• › Variation is mainly due to: (i) increase in put option liabilities (€M 7.2), (ii) increase in bank loans (€M 5.3), (iii) IFRS 16 impact (€M -0.7), (iv) decrease in liquidity on bank accounts (€M 1.3) due to the acquisitions.

› Gross debt is composed by €M 22.1 of financial debt (of which €M 13.1 LT, €M 9.0 ST), €M 16.7 put options liabilities deriving from M&A (of which €M 3.2 ST) and €M 4.8 IFRS16

› FY 2022 NFP (1) ex IFRS16 is €M 29.4.

› FY 2022 cash and equivalents is €M 9.1.

Net Financial Position Break Down FY 2022 (€M)

9

NET TRADE WORKING CAPITAL DYNAMICS

› FY 2022 Revenues at €M 106.6, up by 12% compared to €M 95.2 of FY 2021. The increase is mostly related to the change in the Group perimeter. Italian revenues up by 9% YoY, mainly related to the acquisition of the majority stake in DGI and XCC, and to the focus on the existing client base. Foreign turnover up by 18%, mainly thanks to the inclusion of InnoCV in the Group perimeter and to the Mexican subsidiaries, whose performance more than offset the Spanish subsidiaries' negative one.

› Adj. Operative costs increased (impact on revenues unchanged vs. FY 2021). Services costs increased by 5% yoy, but reduced the impact on revenues by 2.8 pps. Personnel costs increased incidence on revenues by 2.4 pps compared to FY 2021, due to the higher average FTE for the period (from 655 in 2021 to 809 in 2022), due also to the Group perimeter change.

› FY 2022 Adj. EBITDA at €M 11.8 +12% compared to €M 10.5 in FY 2021, with Adj. EBITDA margin in line with FY 2021(Adj. EBITDA margin at 11.1%).

› FY 2022 EBIT is equal to €M 7.5 +13% compared to €M 6.6 in FY 2021, with an

› FY 2022 EBT at €M 7.1, +23% compared to €M 5.8 in FY 2021, mainly due to lower financial charges linked to fair value adjustments (cap options and

• EBIT margin in line with FY 2021.
• earn-out).
• assets.

› Group Net Profit is €M 5.6 +31% vs €M 4.3 in FY 2021. Taxes for the period were flat despite increase in revenues as an effect of the fiscal consolidation of the Italian companies for 2022 and the use of deferred tax

FY 2022 P&L – IAS/IFRS

Consolidated Profit & Loss

Profit and Loss (€000) - IAS/IFRS	FY 2021	FY 2022
Revenues	95,185	106,574
Service costs, consum. & goods	(46,825)	(49,440)
Personnel	(38,845)	(46,065)
EBITDA	9,515	11,069
% Revenues	10.0%	10.4%
Non recurrent costs	(1,020)	(752)
Adj. EBITDA	10,535	11,821
% Revenues	11.1%	11.1%
D&A	(2,408)	(3,226)
Bad debts/ claims/ provisions	(487)	(337)
EBIT	6,620	7,506
% Revenues	7.0%	7.0%
Financial charges	(851)	(408)
EBT	5,769	7,098
Taxes	(1,498)	(1,498)
% Tax rate	26.0%	21.1%
Net Profit (Loss)	4,271	5,614
% Revenues	4.5%	5.3%
o/w Minorities	8	31
o/w Group Net Profit (Loss)	4,263	5,583

FY 2022 BALANCE SHEET – IAS/ IFRS

› Net Invested Capital at €M 77.5 (€M 57.9 in FY 2021) consisted of approx. € 25.3 million of Net Trade Working Capital (€M 21.9 FY 2021), €M 66.7 of fixed assets (€M 53.1 FY 2021) of which €M 54.9 of Goodwill (€M 41.2 in FY 2021) and €M 4.6 of IFRS 16 rights of use (€M

› Shareholders' equity increased in the period by €M 6.7 since 31 Dec. 2021 (+19%), mainly due to the positive result of the period (€M

• 5.3 in FY 2021).
• +5.6).
• -1.3).

› Net Financial Position at December 31 st , 2022, negative by €M -34.1 (ante-IFRS 16 at €M -29.4) declining by €M -12.9 compared to FY 2021. The variation is mainly due to: (i) increase in put options liabilities and earn-out linked to acquisitions (€M -7.2); (ii) increase in bank loans that financed acquisitions in the period (€M -5.3); (iii) IFRS 16 impact (€M 0.7); (iv) decrease in cash and cash equivalents (€M

Consolidated Balance Sheet

Balance Sheet (€000) - IAS/IFRS	FY 2021	FY 2022
Tangible assets	1,809	2,209
Intangible assets	6,195	6,567
o/w rights of use (IFRS16)	5,332	4,633
Goodwill	41,249	54,868
Financial assets	3,824	3,066
Fixed Assets	53,077	66,710
Inventories	-	-
Trade Receivables	36,040	41,541
Trade Payables	(14,184)	(16,217)
Net Trade Working Capital	21,856	25,324
Other Current Assets	4,159	4,076
Other Current Liabilities	(14,840)	(13,032)
Employees' leaving entitlement	(6,361)	(5,543)
Total Capital Invested	57,891	77,535
Total Equity	36,699	43,406
o/w Group Equity	36,376	43,007
o/w Minorities	323	399
Cash & current financial assets	(10,542)	(9,406)
Bank Debts	16,771	22,104
Put Option Liabilities	9,481	16,661
Other Financial Debts (IFRS16)	5,482	4,770
Net Debt (Cash)	21,192	34,129
Total Funds	57,891	77,535

FY 2022 CASH FLOW GENERATION – IAS/IFRS

› FY 2022 Gross Cash Flow at €M 11.6, compared to €M 10.3 in FY 2021. The increase YoY is mostly due to higher positive result of the period.

› FY 2022 Operating cash flow at €M 5.3 compared to €M 7.4 of FY 2021. The decrease of €M 2.1 is mainly related to total change in Net Working Capital, prepayment releases, paid taxes and severance payments, partially offset by the public contributions received.

› Ordinary Capex of the period is €M 2.5 compared to €M 1,9 of FY 2021. FY 2022 Free Cash Flow before Acquisitions is equal to €M 4.5, declining

› FY 2022 Free Cash Flow is €M 0.1, compared to €M 3.8 in FY 2021.

• vs. €M 5.8 in FY 2021.
• FY 2021.

› Total change in cash for the period was €M -1.3 compared to -€M 8.4 in

Consolidated Cash Flow

Cash Flow Statement (€000) - IAS/IFRS	FY 2021	FY 2022
Net Profit (Loss)	4,271	5,614
Adjustments (cash tax, interest and other)	2,349	1,892
Non-cash items	3,664	4,081
Gross Cash Flow	10,284	11,587
Change in inventories	-	-
Change in trade receivables	(2,008)	(3,642)
Change in trade payables	(678)	2,046
Total change in NTWC	(2,686)	(1,596)
Total change in other asset/liabilities	(182)	(4,723)
Operating Cash Flow	7,416	5,268
Capex	(1,940)	(2,542)
Other non-current assets	303	1,737
Free Cash Flow before Acquisition	5,779	4,463
Acquisitions	(1,949)	(4,361)
Free Cash Flow	3,830	102
Change in treasury shares	(759)	(435)
Dividends to minorities	(1,031)	(613)
Change in bank & fin. Debts	(259)	4,050
IFRS 16 effect	(1,347)	(1,714)
Changes in Equity	892	-
Changes on other financial assets	(55)	-
Change in put/options	(9,653)	(2,733)
Change in Cash	(8,382)	(1,343)
Initial Cash	18,840	10,458
Final Cash	10,458	9,115

OUTLOOK

• The war in Ukraine is causing a widespread increase in the price of energy products, that is generating and supporting a significant inflation that has a direct impact on many economic sectors and on the expectations of companies. Such expectations are affected by the uncertainty that is troubling the markets.

• At present, limited impact has been recorded on Alkemy Group clients, except that some may be more indirectly influenced by the difficulties generated by the war, with possible repercussions on the purchase of the services offered by the Group.

• Considering the results achieved in 2022, barring the occurrence of further aggravating events, currently not foreseeable, it is confirmed that the Group's expectation is to continue growing organically and increasing margins.

A PUBLIC COMPANY LISTED ON EURONEXT STAR MILAN

A SOLID CORPORATE GOVERNANCE

BOARD OF DIRECTORS BOARD OF STATUTORY AUDITORS

Chairman	Alessandro Mattiacci	Chairman	Gabriele Gualeni
Chief Executive Officer	Duccio Vitali	Standing Auditor	Mauro Dario Bontempelli
Director	Riccardo Lorenzini	Standing Auditor	Daniela Bruno
Director	Massimo Canturi	Alternate Auditor	Marco Garrone
Independent Director	Giulia Bianchi Frangipane	Alternate Auditor	Mara Sartori
Independent Director	Ada Villa
Independent Director	Serenella Sala

• The Board of Directors, the Board of Statutory Auditors and the Independent Audit Firm were appointed by the Shareholders' Meeting on April 26, 2022.

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