Nexi — Investor Presentation 2019

May 10, 2019

Nexi

May 10th, 2019 Q1 2019 Results Presentation

• This Presentation may contain written and oral "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of Nexi Group (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
• The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
• Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Enrico Marchini, in his capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects Nexi Group's documented results, financial accounts and accounting records.
• This Presentation has been prepared on a voluntary basis since the financial disclosure additional to the half-year and annual ones is no longer compulsory pursuant to law 25/2016 in application of Directive 2013/50/EU. Nexi Group is therefore not bound to prepare similar presentations in the future, unless where provided by law. Neither the Company nor any of its representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it.

Executive Summary

Strong focus on financial delivery

• EBITDA +21.0% YoY growth, at 110.6 €M in Q1'2019
• Revenues +5.1% YoY reported growth at 226.5 €M in Q1'2019, +6.8% YoY underlying growth excluding run-off of zero-margin hardware reselling contracts from acquisitions

Continued progress on key business initiatives

• Merchant Services and Solutions (47% of Revenues): good progress on SME Smart POS proposition, large merchants omni-channel and E-commerce
• Cards and Digital Payments (41% of Revenues): continuous progress on international debit, acceleration on YAP millennials payments app and CVM up/cross selling activities
• Digital Banking Solutions (12% of Revenues): new propositions rollout (Digital Corporate Banking, ATM, Open Banking) supporting underlying growth from H2
• Cost initiatives and integration synergies contributing to -6.5% YoY reported costs reduction, -4.0% YoY excluding run-off of zero-margin hardware reselling contracts, despite continued investments
• Non-recurring costs below EBITDA ~-60% YoY
• IT strategy delivery progressing according to plan

Overall Q1 results well on track to deliver Financial Guidance

Q1 results

Nexi: The leading PayTech with full coverage of the payments ecosystem

Financial guidance

Net Revenues	 5-7% annual net revenue growth over medium term  2019 growth at lower end of range due to one-time effect of selected contracts run-offs1 ; growth after 2019 at higher end of the range
EBITDA	 13-16% annual EBITDA growth over medium term  2019 EBITDA of ~€490 million, implying YoY growth at the upper end of range  Continued strong operating leverage
Non-recurring Items	 >60% reduction in non-recurring items in 20192  Rapid further decrease of non-recurring items affecting reported EBITDA thereafter
Capex	 8-10% ordinary capex as % of net revenues over long term  Total capex in 2019 (including ordinary and transformation capex) at 16-17% of net revenues  Total capex to trend towards ordinary capex as % of net revenues over medium to long term
Capital Structure & Capital Allocation Source: Management information	 Organic de-leveraging with target net debt of ~2.0-2.5x EBITDA over medium to long term  Invest in organic growth; potentially consider accretive and strategically compelling M&A  Progressive moderate dividend policy, targeting pay-out ratio of 20-30% of distributable profits in medium to long term

Notes: (1) Run-off of zero margin HW reselling contracts of acquired businesses

(2) Non-recurring items affecting reported EBITDA in 2019, excluding extraordinary IPO/refinancing expenses

Healthy revenue growth and strong EBITDA performance

Merchant Services & Solutions: continued growth with key initiatives on track

Cards & Digital Payments: continued growth with key initiatives on track

Digital Banking Solutions: core business substantially flat, key initiatives on track

Costs: strong reduction supported by cost initiatives and integration synergies

Update on capital structure and leverage

Net Financial Debt (€M) Key Highlights

	YE 2018	Q1 2019	Q1 2019 – Post IPO/ Refinancing
Gross Financial Debt	2,605	2,656	1,847
Cash & Cash Equivalents1	(151)	(471)	(308)
Net Financial Debt	2,454	2,185	1,538

Rating update:

• i. S&P's upgraded to BB- with Positive outlook
• ii. Moody's upgraded to Ba3 with Positive outlook

Refinancing agreement includes:

• i. 1,000 €M senior secured Term Loan facility
• ii. New 350 €M multi-currency RCF
• 5 year tenor and weighted average cost of debt reduction of ca. 70 bps p.a. (from ~3.8% to ~ 3.1%)

Senior Secured Credit Facilities and proceeds from
the IPO to refinance:

• i. Outstanding Senior Secured FRNs (1,375€M)
• ii. Private Notes (400€M)

Net Financial Debt / EBITDA (€M)

Source: Company information

(in €M)	PF 2018	PF Q1 2018	Act. Q1 2019	Δ% PF Q1'18-'191	Δ% PF Q1'18- Act. Q1'19
Merchant Services & Solutions	448.2	100.1	106.1	8.1%	6.0%
Cards & Digital Payments	360.6	86.0	93.0	8.1%	8.1%
Digital Banking Solutions	121.7	29.3	27.4	-1.7%	-6.6%
Operating Revenue	930.6	215.4	226.5	6.8%	5.1%
Personnel Costs	-149.9	-38.7	-41.7	7.7%	7.7%
Operating Costs	-356.5	-85.3	-74.2	-9.5%	-13.0%
Total Costs	-506.4	-124.0	-115.9	-4.0%	-6.5%
EBITDA	424.1	91.4	110.6	21.0%	21.0%

Thank You for Your Attention

Investor Relations

investor.relations@nexi.it

Stefania Mantegazza

stefania.mantegazza@nexi.it