Digitouch — Investor Presentation 2021

Nov 29, 2021

CLOUD IS THE NEW DIGITAL

Company Overview

NEXT GEMs CONFERENCE MILAN, 30 NOVEMBER 2021

DISCLAIMER

This document has been prepared by Gruppo DigiTouch (the "Company") for use during meetings with investors and financial analysts and solely for information purposes.

The information set out herein has not been verified by an independent audit company, neither the Company nor any of its subsidiaries, affiliates, branches, representative offices as well as any of their directors, officers, employees, advisers or agents accepts any responsibility for/or makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information regarding the Company, whether written, oral or in visual or electronic form, transmitted or made available.

This document may contain forward looking statements about the Company based on current expectations and opinions developed by the Company. These forward looking statements are subject to significant risks and uncertainties (many of which are outside the control of the Company) which could cause a material difference between forward looking information and actual future results. The Company assumes no obligation to provide updates of any of the aforesaid forward looking statements.

Under no circumstances shall the Company and/or any of the its representatives be held liable (for negligence or otherwise) for any loss or damage arising from any use of this document or its contents or otherwise in connection with the document or the aforesaid forward looking statements. This document does not constitute an offer to sell or a solicitation to buy or subscribe to Company shares and neither this entire document or a portion of it may constitute a recommendation to effect any transaction or to conclude any legal act of any kind whatsoever.

This document may not be reproduced or distributed, in whole or in part, by any person other than the Company; by viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations.

1. WHO WE ARE

• 1. BUSINESS MODEL AND MARKET OPPORTUNITIES
• 1. 1 H 2021 FINANCIAL RESULTS
• 1. STRATEGIC ROADMAP 2021

CLOUD IS THE NEW DIGITAL

OUR

VISION DIGITAL TRANSFORMATION AND INNOVATION ARE THE KEYS FOR GROWTH AND NEW BUSINESS -CLOUD MARKETING IS THE DIGITOUCH VALUE OFFERING TO ADDRESS COMPANIES NEEDS FOR A FULL INTEGRATED AND SCALABLE SERVICE

MISSION TO SUPPORT OUR CLIENTS AND PA IN THE DIGITAL TRANSFORMATION PATH, THROUGH AN INTEGRATED OFFER OF DIGITAL MARKETING, TECHNOLOGY AND E-COMMERCE SERVICES, WITH A MARKET CENTRIC APPROACH

4

• ✓ ESTABLISHED IN 2007
• ✓ LISTED on EURONEXT GROWTH MILAN since 2015
• ✓ 300+ HIGHLY SKILLED PEOPLE
• ✓ OFFICES in ROME, MILAN,
  • LISSONE, PORDENONE
• ✓ FULLY GDPR COMPLIANT
• ✓ 300+ CLIENTS

Gruppo DigiTouch is an ISO-9001 Certified Company for:

• business management systems
• design and delivery of training interventions in Digital Transformation area

• ✓ Experience in M&A
• ✓ Capability in People & Process integration
• ✓ Focus on mid-term Business Innovation

• E-Commerce
• Technology
• Marketing Services

A FULLY INTEGRATED OFFER

7

7

CREATING VALUE BY LEVERAGING ON AN INTEGRATED APPROACH AND CROSS FERTILIZATION

TECHNOLOGY SERVICES

• Data analysis & insights
• Business analytics & predictive models
• Data science & machine learning
• Mar-Tech system integration
• Marketing Automation
• Business Process Automation

E-COMMERCE SERVICES

• E-commerce solutions
• •Interface development
• Experience Design
• Cloud Solutions

MARKETING SERVICES

• Omnichannel marketing
• Content & Creativity
• Tracking
• SEO & CRO
• Special projects
• Digital event platform

We are a Cloud Marketing Company with focus on integrating Technology, Marketing, Resources and Skills.

Confidential and proprietary information of Gruppo DigiTouch. All rights reserved.Flexibility, market centricity, consultancy and assets integration are our keys

VALUE FOR CLIENTS

CORE

OFFER

Plan, implement and manage clients' digital offers

Display and sell clients' goods and services digitally

Promote market and services and recruit clients online

SCALABILITY & PERFORMANCES

STRATEGY	DESIGN	COMMERCE	COMMUNICATION	INTEGRATION MAR-TECH SYSTEM
DATA ANALYSIS	CUSTOMER EXPERIENCE DESIGN	DIRECT TO CONSUMER	ADVERTISING & MEDIA PLANNING	MAR-TECH CONSULTING
CONTENT AND SOCIAL	PLATFORM & WEBSITE	OMNICHANNEL	EVENTS	MARKETING AUTOMATION
E- COMMERCE & TESTING	MOBILE AND APP APPLICATION	MARKET PLACES	MEDIA MANAGEMENT	HOSTING
SEO	PRODUCTION	VOICE COMMERCE	SEO & INFLUENCER MARKETING	SYSTEM INTEGRATION
	REPORTING
	CLOUD

TECH SKILLS WITHIN THREE CORE DIVISIONS

9

MACHINE LEARNING

Proprietary platform - Meware Cognitive Platform (MCP) - which offers evolved system of business analysis, based on a modular architecture able to analyse complex data, also using algorithms from machine learning and deep machine learning

CLOUD

Management of complex and heterogeneous infrastructures and capability to project, implement and manage cloud environments (private and public). It employs elastic infrastuctures and erogates tailor-made managed service

E-COMMERCE & WEB INTERFACES

Strong competences in infrastructure services, development of e-commerce apps and designing winning user interfaces. Capabilities to develope stand alone ecommerce portals as well as ecommerce market place solutions

DIGITAL MARKETING

Skilled team of professionals in the full set of digital marketing tools and products leveraging on internal assets and capabilities as well as external partnerships with main software vendors

WELL POSITIONED TO CAPTURE OPPORTUNITIES COMING FROM ITALIAN DIGITAL GAP

Digital enablers: innovative technologies (cloud computing, cyber security, artificial intelligence, IoT and big data) among the main growth drivers of the digital sector

• Organic trends: i) "New digital habits of Italians" ii) "Growing digital adoption by Italian SMEs" iii) "Digital enablers
• Main goals for NRRP: i) "Government service digitalisation" with investments to accelerate the digital transformation of PAs, also including (among others) the justice and healthcare systems; ii) "Transition 4.0 and direct investments"; and iii) "Infrastructure", i.e. investments in the UBB and 5G networks as well as datacenters and cloud infrastructure.

Confidential and proprietary information of Gruppo DigiTouch. All rights reserved.

DIVERSIFIED PORTFOLIO

EXPERTISE IN DIFFERENT SEGMENTS – CORE CUSTOMERS

Confidential and proprietary information of Gruppo DigiTouch. All rights reserved.

WELL BALANCED CLIENTS' PORTFOLIO

STRONG EXPERTISE IN TELCO, UTILITIES, FINANCE AND INSURANCE

• Strong presence in key areas (i.e. telco, utilities, finance and insurance)
• Solid presence also in Retail & commerce and in Luxury
• Increasing market shares in PA and Pharma
• Around #20 new clients acquired in the last 6-8 months only – including top tier such as TIM, Bip, and

NEW CUSTOMERS in 2021

COMPETITIVE ARENA

Overall market convergence in the area of "Integrated Offer", generating additional market consolidation

• Gruppo DigiTouch competes with big consultancy groups through a mix of consulting, marketing and tech
• Compared to them, DigiTouch can be more flexible in delivering some customized projects at more scalable

14

INSURTECH

Digitalization of Insurance Industry is just started. DigiTouch has skills, case histories, technology and a primary role in the Italian Insurtech Association (IIA).

Ecommerce customer experience will evolve and the e-commerce streaming will be not only a main trend, but will aggregate media, marketing, transaction and social skills.

E-COMMERCE STREAMING

CLOUD COMPUTING

Cloud is not only the practice of using a network of remote servers hosted on the internet but also leverage on marketing, e-commerce & data services remotely.

Data management and Forecasting models are always more central to manage mid & large companies processes. DigiTouch is a pioneer in this domain since the first wave of the fraud management services.

FRONT ENDS

Evolutions of customer journeys is moving fast and Voice, Mobile & web interfaces are always more integrated and performing. User experience is a key DigiTouch domain.

ROBUST SET OF RESULTS IN 1H 2021

ORGANIC GROWTH COMBINED WITH STRONG MARGINS

Recovery of major clients along with new customer acquisitions

• Strong organic growth by 15% compared to 1H 2020
• Solid contribution of the new segments: Technology and Ecommerce
• Operating profitability improved and overall profitability preserved
  • EBITDA Adj. up 12% with healthy margin on Revenues at 17%
  • EBIT growing by 17% with 5% of margin
• Net income as adjusted for goodwill amortization at €1,2m
• Positive Cash flow generation with FCF at €0,9m vs €0,6m at the end of FY 2020
• Net financial debt at €2,1m, in line with FY 2020 after paying dividends and purchase of own shares - Significantly low Net Debt/EBITDA LTM (0,3x in FY 2020), offering room for additional leverage and investments

1H 2021 FINANCIAL HIGHLIGHTS

1H'20 1H '21

REVENUES BY SEGMENT (€M) EBIT (€M)

17

Note: EBITDA as adj. for non recurring items of €36k - Net Income as adj. for goodwill amortization Data in euro million; data accounted in IT GAAP

0,7

1H '21

0,9

INCOME STATEMENT (€M)

(Euro M) Income Statement	1H'20	'21 1H	% YoY
Revenues	14 95 ,	17 16 ,	8% 14 ,
adj EBITDA	2 61 ,	2 91 ,	11 6% ,
EBITDA margin	17 5% ,	17 0% ,
EBIT	0 74 ,	0 87 ,	16 9% ,
EBIT margin	5 0% ,	5 0% ,
before Earnings tax	0 57 ,	0 73 ,	7% 26 ,
Net Income	0 39 ,	0 35 ,	7% -11 ,
adj for goodwill amortization Net Income	1 17 ,	1 19 ,	2 3% ,
adj Net Income . margin	7 8% ,	6 9% ,

• Top line organic growth of 14,8% thanks to: favorable market conditions for existing clients (despite the ongoing pandemic and uncertainties); entrance of new customers
• EBITDA adj. at €2,9m, up 11,6% vs 1H 2020; lower operating costs incidence on Revenues, and the new go-to-market approach (with focus on more profitable projects) as the positive drivers. All in all, Margins were stable YoY.
• Capitalized cost of €0,3m, down by 12% vs 1H 2020. Depreciations and amortizations increased due to change in perimeter, nevertheless EBIT was up 16,9% vs 1H 2020
• Significant growth in pre-tax earnings, while Net income was slightly impacted by higher taxation
• Adjusted Net Result: heavily impacted by the effect of goodwill amortization accounted in accordance with OIC rules

1H 2021 GROWTH AT BOTTOM LINE LEVEL

NET INCOME ADJ. (€M)

Analysis of adj Net Income	FY'17	FY'18	FY'19	'20 FY	'20 1H	'21 1H
Revenues	28 89 ,	30 60 ,	38 95 ,	33 52 ,	14 95 ,	17 16 ,
residual Goodwill	11 36 ,	10 01 ,	8 59 ,	8 35 ,	7 86 ,	7 52 ,
Net Equity	14 08 ,	14 07 ,	14 50 ,	14 77 ,	14 65 ,	14 66 ,
after goodwill Equity Net coverage	2 72 ,	4 05 ,	5 92 ,	6 42 ,	6 79 ,	7 14 ,
Goodwill amortization	1 25 ,	1 35 ,	1 49 ,	1 60 ,	0 78 ,	0 85 ,
Net Income	0 42 ,	0 27 ,	0 77 ,	0 07 ,	0 39 ,	0 35 ,
adj for goodwill Net Income amort	1 66 ,	1 62 ,	2 26 ,	1 67 ,	1 17 ,	1 19 ,
adj Income margin Net	7% 5 ,	3% 5 ,	8% 5 ,	0% 5 ,	8% 7 ,	6 9% ,

• Starting from FY 2022, DigiTouch will report its financials in IFRS GAAP
• DigiTouch still reports its Financials in IT GAAP
• Adjusted Net income: heavily impacted by the effect of goodwill amortization accounted in accordance with OIC rules. This metric better shows the profitability of the company
• Net Equity after goodwill coverage: highlights the ability to cover the residual value of goodwill

1H 2021 FCF GENERATION AND NFP DYNAMICS

CASH FLOW (€M)

FY'20	'21 1H
2	2
61	91
,	,
1	-1
10	33
,	,
-0	0
60	41
,	,
3	1
11	99
,	,
-3	-0
19	09
,	,
0	-1
68	05
,	,
0	0
60	85
,	,

NFP (€M)

• Positive cash generation with FCF up from €0,6 in FY 2020 to €0,9m at the end of semester. Positive change in Operating cash flow level due to a lower absorption of Working capital. NWC negatively impacted by approx. €1,4m in payables not cashed iin from a key customer

8,47

• Other Investments including shares in Ondeal that will be accounted for as intangible asset from 2H 2021 onwards. Significantly low Net Debt/EBITDA at 0,3x - still room for additional leverage and investments

Confidential and proprietary information of Gruppo DigiTouch. All rights reserved.

-2,14

Net Debt 1H 2021

instruments

21

1H 2021 BALANCE SHEET: STRONG REDUCTION IN GOODWILL

BALANCE SHEET (€M)

Balance Sheet (Euro M)	FY'20	'21 1H
Goodwill	8 35 ,	48 7 ,
Other Assets	67 7 ,	8 22 ,
Working Capital Net	2 40 ,	2 62 ,
Liabilities Long -term	1 14 - ,	1 51 - ,
Capital Employed Net	16 78 ,	16 81 ,
Net Equity	14 77 ,	14 67 ,
Financial Debt Net	2 01 ,	2 14 ,
Equity and Funds Net	16 78 ,	16 81 ,

• Stable Net capital employed, influenced by €1,1m investments in the controlled company Digital Market Solutions, and by €0,6m used to buy 7,1% shares of the innovative start-up Insurance Arena, active in the insurance market place field.
• NFP of €2,1m vs €2,0 in FY 2020, impacted by dividends distribution and ongoing share buy-back program for €0,4m.
• Net debt including €8,5m in cash and cash equivalents vs €7,8m in FY 2020

STRATEGIC ROADMAP 2021 – GUIDANCE 2021 CONFIRMED

Revenues >= €40m EBITDA adj. €6,2-6,5m

DigiTouch will continue to focus on the new integrated offer through the go-to-market approach while keeping attention on both top line growth – also through M&As – and profitability progress

The digital shift is one of the most profound change brought about by the pandemic and DigiTouch is taking all the available opportunities with a clear strategy aimed at:

• 1. Focusing on the sector of public tenders
• 2. Accelerating e-commerce / development of digital enabler e-commerce positioning
• 3. Speeding up innovation in the fast growing areas of insurtech, e-commerce streaming, cloud computing, machine learning and front ends
• 4. Offering integrated projects combining its platforms with customers' technologies

.O4

credibility

experience in the industry and trustable

THANKS FOR YOUR TIME

investor.relator@digitouch.it Viale Vittorio Veneto 22, side Via Zarotto 2/A, 20124 Milan - ITALY www.gruppodigitouch.it - P: +39 02 89295 100

Confidential and proprietary information of Gruppo DigiTouch. All rights reserved.24