Alkemy

Investor Presentation • May 15, 2024

Q1 2024 RESULTS

15.05.2024

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 help companies to evolve their business in the post-digital scenario

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 28% (>3x the market), to move from the 23 starting resources to a team of over 900 people and a turnover of 119M€ in 2023.

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 2021 was up to +500%.

With a new organization and a dedicated Industries & Clients team Alkemy is now focusing on the industrialization and expansion of the business scale, resulting in strong organic growth and higher marginality.

FINANCIAL HIGHLIGHTS

€M	Q1 2024	Q1 2023
Turnover	28.4	28.0	+1% vs. Q1 2023, thanks to the contribution of the Italian > companies of the Group.
Adj. EBITDA	2.3	2.5	-8% vs. Q1 2023. EBITDA Adj. margin at 8.2%, -0,8 pps vs. Q1 > 2023 mainly due to higher operating costs.
EBIT	0.9	1.3	-33% vs. Q1 2023, due to higher amortization costs following > higher investments made starting from H2 '23. EBIT margin at 3.1%, down from 4.7% in Q1 2023.
EBT	0.4	0.8	-46% vs. Q1 2023, despite lower financial charges (-13% vs. > Q1 2023).
Group Net Income	0.2	0.7	-63% vs. Q1 2023, with higher tax rate (44% vs. 17% in Q1 > 2023), mostly due to accounting consolidation effects.
Net Operating Cash Flow	4.1	2.3	+1.8 €M vs. Q1 2023 mainly due to NWC dynamics. >
NFP	-28.7	FY 2023 -31.8	€M +3.1 since 31 December 2023 as a consequence of the > timely repayment of financial debt.

REVENUES

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

ALKEMY TURNOVER DEEP DIVE (€M)

› Q1 2024 revenues at €M 28.4, +1% vs. Q1 2023 (€M 28.0). The result is due to the positive performance of the Italian companies.

› Q1 2024 Italian turnover at €M 18.0, +4% vs. €M 17.3 in Q1 2023. The growth is mainly due to the focus on the expansion of the client base of the Go-to-Market department.

› International revenues in Q1 2024 at €M 10.4, down by 3% vs. €M 10.7 in Q1 2023, mainly due to the negative performance of Alkemy Iberia and the Mexican subsidiaries.

› Revenues generated by clients in the Entertainment & Lifestyle, Energy & Utilities and FSI generated 61% of Group revenues for the quarter.

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-

Q1 ALKEMY Adj. EBITDA(€M) – IAS/IFRS(1) & MARGIN (%)

Adj. EBITDA

EBITDA MARGIN – Adj. EBITDA MARGIN (%) QUARTERLY TREND

Q1 2024 CASH FLOW

Q1 2024 Cash Flow generation - (€000)

• › Q1 2024 Gross Cash Flow at €M 2.3, in line with Q1 2023, mainly due to higher non-cash adjustment.
• › FCFO at €M 4.1, equal to almost 2x Adj. EBITDA, +82% compared to Q1 2023 due to net working capital dynamics.
• › Capex in line with Q1 2023 and equal to 2% of revenues.
• › Cash over Q1 2024 is flat due to higher FCFE and an increase in the change in financial debt compared to Q1 2023.

Initial Cash	12.0 €M
Delta Cash	0.0 €M
Final Cash	12.0 €M

Net Financial Position Bridge Q1 2024 (€M)

NET FINANCIAL POSITION BRIDGE AND DETAILS

9

NET TRADE WORKING CAPITAL DYNAMICS

• Q1 2024 Net Trade Working capital is -8% compared to Q1 2023, and its incidence over last 12 months' revenues declined by 3.3 pps.

• Q1 2024 cash generation from Net Trade Working Capital increase (€M 6.7 million compared to €M 0.1 in Q1 2023), due to payables and receivables dynamics.

• Q1 2024 DSO at 103, -4% vs. Q1 2023; Q1 2024 DPO at 91 broadly in line with Q1 2023.

Net Trade Working Capital (€M)

Cash Conversion Cycle Details (days)

1Q 2022 H1 2022 9M 2022 FY 2022 Q1 2023 H1 2023 9M 2023 FY 2023 Q1 2024

1Q 2022 1H 2022 9M 2022 FY 2022 Q1 2023 H1 2023 9M 2023 FY 2023 Q1 2024

› Q1 2024 Revenues at €M 28.4, up by 1% compared to €M 28.0 of Q1 2023. The growth is fully organic. Italian revenues up by 4% YoY, mainly related to the activities of the Go-to-Market division. Foreign turnover down by 3%, due to the performance recorded by Alkemy Iberia and the Mexican subsidiaries, that more than offset the positive performance recorded by

› Adj. Operative costs increased in line with revenues (impact on revenues at 92% flat vs. Q1 2023). Services costs increased by 8% YoY, and increased the impact on revenues by 2.8 pps. Personnel costs decreased incidence on revenues by 2.7 pps compared to Q1 2023, with a flat FTE average count for the period (from 926 in Q1 2023 to 922 in Q1 2024).

- all other foreign companies.

-

• of the FY.

› Q1 2024 Adj. EBITDA at €M 2.3, -8% compared to €M 2.5 in Q1 2023, with Adj. EBITDA margin at 8.2%, -0.8 pps compared to Q1 2023 (9.0%).

› Q1 2024 EBIT is equal to €M 0.9, -33% compared to €M 1.3 in Q1 2023, mostly due to higher investments made starting from H2 2023.

› Q1 2024 EBT at €M 0.4, -46% compared to €M 0.8 in Q1 2023.

› Group Net Profit is €M 0.2 -63% vs €M 0.7 in Q1 2023. Taxes for the period increased due to consolidation effects that will be diluted over the course

Q1 2024 P&L – IAS/IFRS

Consolidated Profit & Loss

Profit and Loss (€000) - IAS/IFRS	Q1 2023	Q1 2024
Revenues	28,034	28,397
Service costs, consum. & goods	(11,792)	(12,728)
- of which non-recurrent	(4)	(37)
Personnel	(14,002)	(13,427)
- of which non-recurrent	(272)	(41)
Adj. EBITDA	2,516	2,320
% Revenues	9.0%	8.2%
EBITDA	2,240	2,242
% Revenues	8.0%	7.9%
D&A	(923)	(1,208)
Bad debts/ claims/ provisions	(13)	(156)
EBIT	1,304	878
% Revenues	4.7%	3.1%
Financial charges	(520)	(451)
EBT	784	427
Taxes	(134)	(189)
% Tax rate	17.1%	44.3%
Net Profit (Loss)	650	238
% Revenues	2.3%	0.8%
o/w Minorities	5	19
o/w Group Net Profit (Loss)	645	219

Q1 2024 BALANCE SHEET – IAS/ IFRS

› Net Invested Capital at €M 76.6 (€M 79.5 in FY 2023) consisted of approx. € 23.0 million of Net Trade Working Capital (€M 29.7 FY 2023), €M 67.2 of fixed assets (€M 67.5 FY 2023) of which €M 54.9 of Goodwill (in line with FY 2023) and €M 6.1 of IFRS 16 rights of use (€M

› Shareholders' equity increased in the period by €M 0.3 since 31 Dec. 2023 (+1%), mainly due to the positive result of the period (€M +0.2).

- 6.3 in FY 2023).

• › Net Financial Position at March 31

st , 2024, negative by €M -28.7 (ante-IFRS 16 at €M -22.4) improving by €M 3.1 compared to FY 2023. The variation is mainly due to the decrease in bank loans (€M -3.0).

Consolidated Balance Sheet

Balance Sheet (€000) - IAS/IFRS	FY 2023	Q1 2024
Tangible assets	1,939	1,875
Intangible assets	8,353	8,051
o/w rights of use (IFRS16)	6,274	6,056
Goodwill	54,871	54,869
Financial assets	2,363	2,384
Fixed Assets	67,526	67,179
Inventories	-	-
Trade Receivables	45,929	38,545
Trade Payables	(16,196)	(15,565)
Net Trade Working Capital	29,733	22,980
Other Current Assets	4,728	5,786
Other Current Liabilities	(16,042)	(12,825)
Employees' leaving entitlement	(6,477)	(6,397)
Total Capital Invested	79,468	76,723
Total Equity	47,716	48,058
o/w Group Equity	47,243	47,567
o/w Minorities	473	491
Cash & current financial assets	(12,136)	(12,157)
Bank Debts	23,627	20,600
Put Option Liabilities	13,755	13,939
Net Financial Position ex-IFRS 16	25,246	22,382
Other Financial Debts (IFRS16)	6,506	6,283
Net Debt (Cash)	31,752	28,665
Total Funds	79,468	76,723

Q1 2024 CASH FLOW GENERATION – IAS/IFRS

› Q1 2024 Gross Cash Flow at €M 2.3, bradly in line with €M 2.3 in Q1 2023.

› Q1 2024 Operating cash flow at €M 4.1 compared to €M 2.3 of Q1 2023. The increase of €M 1.8 is mainly related to Net Working Capital dynamics.

› Q1 2024 Ordinary Capex of the period is €M 0.5, flat compared to €M 0.5 of Q1 2023. Q1 2024 Free Cash Flow is equal to €M 3.6, increasing vs. €M 1.8 in Q1 2023, due to higher operating cash flow.

› Total change in cash for the period was null compared to €M -0.7 in Q1

-

• 2023.

Consolidated Cash Flow

Cash Flow Statement (€000) - IAS/IFRS	Q1 2023	Q1 2024
Net Profit (Loss)	650	238
Adjustments (cash tax, interest and other)	654	640
Non-cash items	976	1,374
Gross Cash Flow	2,280	2,252
Change in trade receivables	2,384	7,241
Change in trade payables	(2,235)	(569)
Total change in NTWC	149	6,672
Total change in other asset/liabilities	(170)	(4,818)
Operating Cash Flow	2,259	4,106
Capex	(492)	(495)
Other non-current assets	-	-
Free Cash Flow before Acquisition	1,767	3,611
Acquisitions	-	-
Free Cash Flow	1,767	3,611
Change in treasury shares	-	(43)
Dividends to minorities	(214)	-
Change in bank & fin. Debts	(1,773)	(2,998)
IFRS 16 effect	(476)	(570)
Changes in Equity	-	-
Changes on other financial assets	-	-
Change in put/options	(40)	-
Change in Cash	(736)	-
Initial Cash	9,115	12.029
Final Cash	8,379	12.029

OUTLOOK

• The outlook for 2024 is still influenced by exogenous factors such as the war in Ukraine, the outbreak of the Isreali-Palestinian conflict, inflation and monetary policy. This situation of widespread uncertainty has significant impacts on companies' expectations which are not always positive.

• At present, with the current visibility on the evolution of the business over the next few months we expect a further moderate growth in revenues for the Group, in particular in the second half of the year.

• With regards to Adj. EBITDA margins, we expect a further moderate contraction over the next quarter, due both to the different competence mix in the revenues and to the impact of the higher personnel cost following the renewal of the collective bargain agreement, impacting from last April. A first partial recovery in margins is expected in H2 2024, following the full deployment of the new commercial organization in Italy.

ALKEMY SHAREHOLDING STRUCTURE

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