Cy4Gate Le Eccellenze del Made in Italy 2024

September 25, 2024

AGENDA

➢ Cy4Gate at a Glance
➢ Addressable Markets
➢ Strategy & Outlook
➢ Financials
➢ Sustainability

EMANUELE GALTIERI MARCO LATINI

ALESSIA PISONI

CEO & General Manager

CFO & Investor Relations Manager

Head of Group FP&A & IR Coordinator

360° CYBER VENDOR

Robust technology engine with proprietary solutions

UNIQUE POSITIONING

Unique positioning in the cyber space with presence in all the 3 market segments

TAILORMADE SOLUTIONS

Tailormade proprietary solutions to suit customer needs

GLOBAL PRESENCE Extensive coverage of the domestic and foreign markets

HUGE TARGET ADDRESSABLE MARKET

Governments – Big Corporation & SME in the cyberintelligence and cybersecurity markets

TALENT AND PEOPLE "AT THE CORE" Investments in human capital and talent development

PARTNERSHIP & M&A GROWTH

Expand our business through excellent partnership and M&A activity

LISTED ON THE STAR MARKET

Listed since June 2023 on the STAR Market of the Italian Stock Exchange

Group & Shareholders

Domitilla Benigni CHAIRMAN

Emanuele Galtieri CEO & General Manager

Marco Latini CFO & Investor Relations Manager

Board of Directors

Strategic and M&A Committee

Portfolio overview

Cyber Intelligence

Source: Markets & Markets; industry reports and expert interviews

Double digit growth 10

Cyber Security

Includes Penetration testing, Vulnerability management and related services

Source: IDC, industry reports and expert interviews

Enduring growth 1. Includes Security Operations products such as SIEM, SOAR, UEBA, Threat Intelligence and related products 11

Our growth Strategy: Market

Cy4Gate Group portfolio – cyber intelligence & cyber security products - perfectly fits with the following 3 fast growing markets, both in Italy and abroad:

Defence

Security & Law Enforcement

Corporate

Increasing internal and external security threats and undergoing military network-centric modernization;
Market CAGR 8% predicted to grow to 1350B\$ in 2030 from 750B\$ (2022).
Digital crime via digital/electronic devices is LEAs biggest challenge; AI is a key enabler;
Market is globally growing at 9% CAGR up to 2028;
Need for cases management, track evidences, data gathering and correlation, creation of reports.
Double digit growth for digital transformation market (around 20% CAGR to 2027);
Cyber security market is underpenetrated in terms of for SMEs, targets of massive attacks.

Products involved

Decision Intelligence & AI (Quipo) for C2 platforms
▪Cyber security products and services bundle (RTA, Diateam, CTI, customization services)
Decision Intelligence & AI (Quipo & Mito) for data gathering and correlation ▪Forensic Intelligence suite
Decision Intelligence & AI (Quipo)

▪Cyber security products and services bundle (RTA, Diateam, CTI, Pronto Cyber, Services) for a 360° capabilities coverage

Our growth Strategy: Actions

2024 2025-2026

Defence

Security & Law Enforcement

Corporate

European Defence Contractors ▪ Penetrate new geographies through Cyber Academy and Cyber Labs

▪ Strengthen industrial partneships with Tier-1 Italian and

Increase direct domestic and international market penetration leveraging mother company network
Consolidate the Italian market, focusing on more relevant P.P.O. districts whilst decreasing exposure on less profitable Offices
Maintain commercial advantage while mitigating need for relevant investments through selected partnership with specialized boutique firms
Increase market penetration of newly developed tactical devices in Italy and abroad
Shift from products to capabilities offering to improve competitiveness (cyber security platform)
Complement sales force efforts through new effective channel partnerships (Attiva, Innovery)
Enlarge domestic market penetration in big/medium size corporation through a reinforced and well seasoned sales team
Pursue up-selling and cross-selling opportunities in new corporate segments (banking, automotive, luxury, travel) thanks to XTN acquisition
Capture EU funds (NATO, EDA, ESA) for R&D in the cyber also through industrial partnership
Take part to international consortia or JVs for pluriannual defence programs
Progressively gain relevant shares and presence in the more stable European region
Ensure consistent growth in the Spanish market leveraging on our pluriannual presence in the Country (Dars), to create Cy4 second domestic market for revenues after Italy.
Expand business to new geographies in E.U. partnering with foreign channels and fostering development of an international sales team
Push on inorganic growth via M&A

Opportunities

The strategy will be a key enabler to:
✓ intercept growing Defence market needs, characterized by global relevant investments, huge size and pluri-annual contracts, enabling quick creation of backlog, thus supporting Corporate sales in seasonality risks reduction
✓ further consolidate leadership position in Italy (notwithstanding sector justice reform) and boost growth primarily in E.U.
✓ expand Corporate market presence to support creation of recurring stream of regular revenues throughout the year, accelerating the process of seasonality mitigation

Expected Revenues 2024

	PIPELINE	CONVERSION RATE	TOTAL
TOTAL	~122 €M	~16%	~20-23 €M
	BACKLOG	RECURRING	TOTAL
TOTAL	~33 €M	~31-34 €M	~64-67 €M

1H 2024 Highlights

The results of the first half of 2024 confirm the solidity of the CY4Gate group in governmental sales; seasonality of turnover - historically concentrated in the second half of the year - is still relevant partially offset by XTN and RCS sales;

The Value of Production compared to 30 June 2023 slightly suffered the lack of revenues related to foreign orders in the Forensic Intelligence sector, affected by the uncertainty of the international geopolitical scenario. Sales growth in Italy in the defence and justice sector partially filled the revenues gap.

The acquisition of XTN early this January, in the frame of the Group's M&A operations strategy, confirms the objective of CY4Gate management to ensure the implementation of the path undertaken to create a European cyber intelligence and cyber security champion

1H 2024 Key Data

Negative result (loss for the period) includes D&A related to Purchase Price Allocation and extraordinary costs

1H 2024 Revenues Breakdown

By business line By geographical area

1H 2024 People Investment

Total personnel increased in the first half of 2024 by a total of 36 resources:

Increase of 25 resources related to the XTN acquisition that will strengthen the cybersecurity line
Increase of 40 resources in engineering and commercial & staff compared to 29 exits

1H 2024 Profit & Loss

€ mln	1 1H 2024	1H 2023
Operating Revenues	29.8	33.1
Other Operating Revenues	1.3	1.0
Total Revenues	31.1	34.1
Services, Procurement & other operating costs	12.8	13.2
Personnel Costs	15.9	15.4
Costs	28.8	28.6
EBITDA Adjusted	2.4	5.5
D&A [including leasing costs]	(7.6)	(6.4)
EBIT Adjusted	(5.2)	(0.9)
D&A [related to PPA]	(2.3)	(2.0)
EBIT	(7.4)	(2.9)
Financial Income (Expenses)	(1.5)	(0.9)
One off costs	(0.2)	(2.4)
Income Taxes	(0.06)	3.3
Net Result	(9.2)	(3.0)
Net Result Adjusted	(7.4)	1.1

1H 2024 Asset & Liabilities

€ mln	1H 2024	FY 2023
Fixed assets	97.5	87.9
Inventory	0.9	0.8
Contract assets (liabilities)	3.5	3.1
Trade receivables	50.8	53.7
Trade payables	(13.4)	(14.4)
Trade Working Capital	41.9	43.1
Other assets (liabilities)	(13.6)	(6.3)
Net Working Capital	28.2	36.8
Net Capital Invested	125.7	124.8
Cash and cash equivalents	22.6	17.6
Financial assets	1.4	1.4
Financial Liabilities	(45.3)	(28.8)
Lease liabilities	(4.1)	(3.8)
Net Financial Position	(25.4)	(13.6)
Put option liability	(6.3)	(5.7)
Book value of treasury shares in portfolio	(3.2)	(1.6)
Net Financial Position Adjusted	(15.9)	(6.3)
Shareholders' Equity	(100.3)	(111.1)
Sources	(125.7)	(124.8)

Sustainability

Our committment for a greater sustainability

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

cooperation, economic and social development.

Goal 4 Goal 8 Goal 9

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

26 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

Environment Business

Energy efficiency and emissions reduction
Use of water resource
Waste management

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

Governance Human rights Relationship and working conditions

People management and care
People empowerment
Occupational health and safety
Equal opportunities and gender equality

Responsability towards the community

Protection and safety of the community
IT security and critical infrastructure protection

management

Leadership in innovation
Customer relationship management
Responsible management of the supply chain

ESG – Environmental, Social, Governance

Climate positive goal

In 2022, 100 trees planted to reduce 17 tons of Co2
In 2023, 56% saving of energy consumed outside the organization resulting from smart working
We are always looking to improve energy efficiency and we joined the project «M'illumino di meno»

Employees and community

Health Plan Regulation to all permanent employees
Specific regulations to facilitate smart working
Support to non profit associations and partecipation in charity events
We completed the UNI /PdR 125:2022 Gender Certification Process

Robust governance and responsible business conduct

Voluntary ESG disclosure in accordance with GRI Standards
Anti corruption policy & Code of Ethics
GDPR compliance
ESG-ES Rating Ethifinance 82/100 above the average of the 264 companies assessed in IT sector

Headquarter Via Coponia, 8

00131 Rome - Italy

CFO & Investor Relations Manager Marco Latini

[email protected]

Investor Relations Advisor

CDR Communication [email protected] [email protected]