CY4GATE S.p.A. — Investor Presentation 2024

Nov 27, 2024

Cy4Gate European Midcap Conference - Virtual

November 27, 2024

AGENDA

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

MARCO LATINI

ALESSIA PISONI

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

2014-2024: 10 Years of Growth

Group & Shareholders

Domitilla Benigni CHAIRMAN

Emanuele Galtieri CEO & General Manager

Marco Latini CFO & Investor Relations Manager

Paolo Izzo Member

Strategic and M&A Committee

Alessandra Bucci Independent Member

Sangiovanni Vincentelli

Alberto Luigi

Member

Portfolio overview

Cyber Intelligence

Source: Markets & Markets; industry reports and expert interviews

Double digit growth 11

Cyber Security

12

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

1. Includes Penetration testing, Vulnerability management and related services

Source: IDC, industry reports and expert interviews

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

• Strengthen industrial partneships with Tier-1 Italian and European Defence Contractors
• Penetrate new geographies through Cyber Academy and Cyber Labs
• 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	~11%	~13-15 €M

	BACKLOG	RECURRING	TOTAL
TOTAL	~38 €M	~31-34 €M	~69-72 €M

The results of the first 9 months of 2024 confirm the soundness of the CY4Gate Group with the improvement of all economic indicators compared to 9M 2023; seasonality of turnover - historically concentrated in the last quarter of the year - is still relevant partially offset by XTN and DARS (RCS group Company) sales

The Value of Production compared to 30 September 2023 grows by around 6% thanks to the defence sector, the cyber intelligence sector to support law enforcement in Italy, and the excellent performance of the newly acquired XTN. This growth offset the lack of revenues related to foreign orders in the Forensic Intelligence sector, affected by the uncertainty of the international geopolitical scenario

The Group continues to pursue its strategy to deseasonalize the business, also thanks to the creation of an important backlog with the closing of significant contracts in terms of amount and profitability, with multi-year duration. Guidance 2024 confirmed.

9M 2024 Key Data

▪ Revenues +5.8% compared to the first nine months of 2023, thanks to Defence and national Forensic Intelligence sectors, as well as the excellent performance of the newly acquired XTN Cognitive Security

▪ R&D Costs +85% compared to the comparative period taking account of the exposure of RCS's R&D costs from end of 2023.

Revenues¹ (€ mln) R&D (€ mln) EBITDA Adj. (€ mln)

▪ EBITDA Adjusted at €3.6 million – margins increased by 12% but still affected by lower revenues in foreign Forensic Intelligence

9M 2024 Revenues Breakdown

By business line By geographical area

9M 2024 People Investment

Total personnel increased in the first nine months of 2024 by a total of 37 resources:

• Increase of 25 resources related to the XTN acquisition that will strengthen the cybersecurity line
• Increase of 88 resources in engineering and commercial & staff compared to 76 exits

9M 2024 Profit & Loss

€ mln	1 9M 2024	9M 2023
Operating Revenues	45.4	43.6
Other Operating Revenues	2.2	1.3
Total Revenues	47.5	44.9
Services, Procurement & other operating costs	20.1	19.3
Personnel Costs	23.8	22.4
Costs	43.9	41.7
EBITDA Adjusted	3.6	3.2
D&A [including leasing costs]	(11.4)	(9.6)
EBIT Adjusted	(7.8)	(6.3)
D&A [related to PPA]	(3.4)	(3.4)
EBIT	(11.1)	(9.7)
Financial Income (Expenses)	(1.8)	(1.0)
One off costs	(0.2)	(2.4)
EBT	(13.2)	(13.2)

9M 2024 Asset & Liabilities

€ mln	9M 2024	FY 2023
Fixed assets	96.8	87.9
Inventory	1.5	0.8
Contract assets (liabilities)	6.1	3.1
Trade receivables	49.4	53.7
Trade payables	(11.1)	(14.4)
Trade Working Capital	45.9	43.1
Other assets (liabilities)	(13.0)	(6.3)
Net Working Capital	32.9	36.8
Net Capital Invested	129.7	124.8
Cash and cash equivalents	8.3	17.6
Financial assets	3.4	1.4
Financial Liabilities	(43.1)	(28.8)
Lease liabilities	(3.8)	(3.8)
Net Financial Position	(35.2)	(13.6)
Put option liability	(4.4)	(5.7)
Book value of treasury shares in portfolio	(3.2)	(1.6)
Net Financial Position Adjusted	(27.5)	(6.3)
Shareholders' Equity	(94.5)	(111.1)
Sources	(129.7)	(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.

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.

26

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

• 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

investors@cy4gate.com

Investor Relations Advisor

CDR Communication silvia.dirosa@cdr-communication.it luca.gentili@cdr-communication.it