Cy4Gate European MidCap Event - Frankfurt

February 08, 2024

Our Growth
Strategic pillars
Focus on M&A
Governance and Shareholders
Portfolio and markets
Acquisition of XTN Cognitive Security
Key Financial performances
ESG

Fast growing and attractive national and european group in cyber security and cyber intelligence…

Delivery on track on all Strategic pillars

Focus on M&A to become an European Cyber Leader Company

RCS is a leading Italian player operating in the forensic intelligence & data analysis market, the best target for Cy4Gate's growth ambition - Cy4Gate acquired 100% of the Company. In 2020, RCS recorded revenues for over € 40 million.

DIATEAM is a French company operating in the cyber security sector for specialises for Government and corporate customers – Cy4Gate acquired 55% of the Company. In 2021, Diateam recorded revenues for over € 2 million.

XTN is an Italian company operating in the IT security sector, with solutions aimed at identifying risk behaviour typical of abuse or fraud – Cy4Gate acquired 97.8% of the Company in partnership with Alfa Group, 77.8% and 20% respectively. In 2022, XTN recorded revenues for over € 3 million.

GROUP & SHAREHOLDERS

TEAM

Domitilla Benigni CHAIRMAN

Emanuele Galtieri CEO & General Manager

Marco Latini CFO & Investor Relations Manager

Board of Directors

Strategic and M&A Committee

CY4Gate Portfolio in two main markets: Cyber Intelligence & Cyber Security

PORTFOLIO OVERVIEW

CYBER INTELLIGENCE

Source: Markets & Markets; industry reports and expert interviews

Double digit growth

CYBER SECURITY

Includes Security Operations products such as SIEM, SOAR, UEBA, Threat Intelligence and related products
Includes Penetration testing, Vulnerability management and related services

Source: IDC, industry reports and expert interviews

Enduring growth

Cy4Gate's Markets

GEOGRAPHICAL PRESENCE AND MARKETS SERVED

The company mainly operates in Italy, is also active in Spain and is increasing its presence in Germany and France. It also has a global presence, with clients in the Middle East, South East Asia, and Latin America.

						9M 2023 CY4GATE Group

10.7	86%	14.4	85%	41.2	63%	25.0	57%
1.8	14%	2.6	15%	24.2	37%	18.6	43%
12.5	100%	17.0	100%	65.4	100%	43.6	100%

Note: Calculated on operating revenues, Cy4Gate 2022 pro-forma full year

Cyber Security portfolio enrichment: Acquisition of

XTN is an Italian company operating in the IT security sector, with a very strong expertise on solutions aimed at identifying risk behavior

Key Highlights

Cy4Gate, in partnership with Alfa Group, a leading Italian company in anti-fraud and cyber security services for the banking sector - purchases a 97.8% IKS TN share capital stake; 77.8% purchased by Cy4Gate, 20% by Alfa Group
97.8% IKS TN share capital stake total price is €12.7 million
XTN's proprietary platform, is able to protect critical digital-based processes and avoid impacting the user experience through the use of AI algorithms, combined with profiling of observed activities
The strength of the Platform is to "authenticate" the user according to different points of view and validate its behavioral by applying multiple approaches.
XTN's products have been highlighted as emerging technologies globally by Gartner

1. Enrichment of Cy4Gate's portfolio offering in the cybersecurity sector

2. Reach more effectively the banking market in Italy and abroad where a trend of fusion among cybersecurity and anti-fraud is emerging globally; this by also exploiting the track record of Alfa Group.

Access to two further markets: automotive and gambling, in which XTN is already present. 3.

Increase the recurring business and corporate presence of Cy4Gate Group.

Key Financial Performances

FY 2023 Key Numbers¹

▪ Orders collected during 2023 amount to € 73 million, an increase of 22% compared to 2022.

▪ Total revenues as at 31 December 2023 amounted to more than € 65 million, an increase of 20% compared to the 2022 figure despite the postponement of the execution of an important foreign order awarded

2022 financial results refer to Cy4gate stand alone + 9 months of RCS; 2023 financial results include the entire consolidation of RCS and DIATEAM
Including other operating revenues

9M 2023 Key Data

Including other operating revenues; comparative 2023 does not include 1Q of RCS Group and DIATEAM
Negative result (loss for the period) Includes D&A related to Purchase Price Allocation and extraordinary costs

9M 2023 Revenues Breakdown

Note: Cy4gate Group results as of 30.09.2022 include 9 months of Cy4Gate + 6 months of RCS Note: Cy4gate Group results as of 30.09.2023 include the consolidation of DIATEAM for the entire period Note: Calculated on operating revenues

9M 2023 People Investment

Total personnel increased in 9M23 by a total of 59 resources:

Increase related to the DIATEAM acquisition, which allowed the Group to acquire specialized resources and technical skills to strengthen the cyber-security business line
Increase of 31 resources preparatory to the achievement of plan objectives (recruitment in the sales and engineering functions).

9M 2023 Profit & Loss

€ mln	1 9M 2023	9M 2022 2 Restated
Operating Revenues	43.6	26.0
Other Operating Revenues	1.3	0.9
Total Revenues	44.9	26.9
Services, Procurement & other operating costs	20.8	14.0
Personnel Costs	24.2	14.4
R&D Investments	(3.3)	(2.5)
Costs	41.7	25.9
EBITDA	3.2	1.0
EBITDA Margin	7%	4%
D&A [including leasing costs]	9.6	6.5
EBIT Adjusted	(6.3)	(5.5)
One off costs	2.4	2.9
D&A [related to PPA]	3.1	2.0
EBIT	(11.8)	(10.4)
Financial Income (Expenses)	(1.0)	(0.4)
Income Taxes	5.8	2.2
Net result	(7.0)	(8.6)

Executive summary:

Revenues +68% compared to 9M 2022, thanks to organic growth (+17%) and consolidation of subsidiaries. The seasonality of the business is still high, revenues concentrated in the last quarter of the year.

Costs are in line with the Group's growth objectives and distributed linearly over the year.

EBITDA increase compared to 9M 2022, with significant investments, especially in qualified personnel, but it always suffers from the combined effect of seasonality of revenues and linearity of costs.

Net result recorded a loss of € 7.0 million, mainly due to extraordinary costs (translisting and integration costs) and D&A costs (PPA and amortization), but a clear improvement compared to the same period of the last year (a loss of €8.6 million)

Including the consolidation of DIATEAM from 1st January 2023
Comparative 9M 2022 includes the redetermination of the effects of the purchase price allocation

9M 2023 Asset & Liabilities

€/000	9M 2023	FY 2022
Fixed assets	81.8	70.1
Inventory	0.7	0.8
Contract assets (liabilities)	2.6	(1.0)
Trade receivables	57.4	64.5
Trade payables	(10.7)	(10.6)
Trade Working Capital	50.0	53.7
Other assets (liabilities)	3.1	(4.4)
Net Working Capital	53.1	49.4
Net Capital Invested	134.9	119.5
Cash and cash equivalents	6.5	19.9
Financial assets	1.7	1.8
Financial Liabilities	(20.1)	(15.4)
Lease liabilities	(3.7)	(3.3)
Net Financial Position Adjusted	(15.6)	3.1
Adjustments for non rec. events		-
and/or extraordinary transactions	(5.4)
Shareholders' Equity	(113.8)	(122.5)
Sources	(134.9)	(119.5)

Executive Summary:

Fixed Asset increase mainly due to the effects of goodwill linked to DIATEAM acquisition

Net Working Capital increase mainly to contract assets and other assets compared to the same period of the last year. TWC decreased thanks to the decline in trade receivables mainly due to improvement in collection times.

Net Financial Position is negative because of DIATEAM acquisition IFRS impact

Shareholders' Equity stood at 113.8 million compared to 122.5 million at December 31, 2022

23 ESG SUSTAINABILITY REPORT Learn more

Our committment for a greater sustainability

EthiFinance issued the first ESG Rating with a score of 64/100 Cy4Gate is placed above the average of the 154 companies subject to the rating belonging to the IT Sector

UN Global Compact & SDGs

By joining the United Nations Global Compact, CY4GATE shares, supports and applies the fundamental Ten Principles of the Global Compact in its sphere of influence and actively contributes to the achievement of the United Nations Sustainable Development Goals.

CY4GATE has included in 2023- 2025 business plan investments to adopt its Social Report structured on the indications contained in the GRI (GRI 200, 300, 400) and GBS standards.

And, we will contribute to the achievement of the following 6 of the 17 goals of the 2030 Agenda for Sustainable Development.

To ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Goal 12 Goal 16 Goal 5

To ensure sustainable production and consumption patterns

To promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Relating to Peace, justice and strong institutions. Defence is a crucial component of security, and security constitutes the prerequisite for peace, prosperity, international

To build resilient infrastructure, and to promote inclusive and sustainable industrialization and foster innovation

To achieve gender equality and empower all women and girls, for operational efficiency and social inclusiveness, actively promoting the implementation of the Women Empowerment Principles.

Business ethic and human empowerment

Solid corporate governance
Sustainability-oriented strategies and policies
Responsible business conduct
Information security and privacy
Transparency of information towards investors
Prevention to corruption
Prevention on anticompetitive behaviour

Respect for human rights
- ‒ in the production and sale of products
- ‒ in People management
- ‒ in the gender equality and diversity empowerment
- ‒ in the supply chain management