Nexi — Investor Presentation 2021

Nov 11, 2021

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nexi

9M 2021 Results Presentation

November 11th, 2021

Disclaimer

• 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.
• 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.

Key messages

Continued volume recovery and acceleration across geographies

• Strong volume performance in Italy with Italian Cards ranging between +20% / +25% vs 2019
• Nordics back to positive volume growth. DACH still recovering driven by strong basic consumption growth
• SMEs accelerating faster than LAKAs
• Continued acceleration of cash to digital payments shift across sectors, visible in all geographies

Strong financial performance in 3Q21 and 9M21

• Revenues +10.1% vs 3Q20, +9.6% vs 9M20
• Strong revenue growth in Merchant Services & Solutions for both Nexi and Nets: +12.2% vs 3Q20 and +10.6% vs 9M20
• E-commerce revenues growing at +37% vs 3Q20 and +32% vs 9M20
• EBITDA +14.6% vs 3Q20, +12.3% vs 9M20, continued margin expansion

Continued progress in creating the European PayTech leader

• Strong SIA standalone performance
• Nexi-SIA: Antitrust approval received on Oct 14th. Closing expected by year-end
• Nexi-UBI merchant book: closing done on Oct 26th
• Nexi-Alphabank JV: signed on Nov 11th . Closing expected in 1H22
• Orderbird: strategic investment in DACH leading merchant SW solution for hospitality sector

Confirmed 2021 Nexi+Nets combined Ambition

• Revenues at ~+10% y/y
• EBITDA at +11% to +13% y/y

Executive Summary

Volume update

• Continued recovery on Acquiring volumes during 3Q, with geographies developing at mixed pace due to Covid-19 restrictions:
  • Strong volume performance in Italy, with solid growth performance in basic consumptions and continued growth across discretionary and high impact categories. Strong acceleration on domestic volumes in 3Q and fast recovery of Foreign Cards, almost reaching 2019 levels in August
  • Nordics back to positive vs 2019 in September, with basic consumption at +36%
  • DACH still recovering driven by strong basic consumption growth (+28% in October vs 2019). Discretionary consumption back to positive in October and high impact sectors still affected by restrictions
• Continued acceleration of cash to digital payments shift across sectors, not only in Italy but visible in all geographies

Results highlights¹

• Revenues 9M21 at 1,638.4 €M, +9.6% y/y. Revenues 3Q21 at 598.9 €M, +10.1% y/y
• EBITDA 9M21 at 762.9 €M, +12.3% y/y. EBITDA 3Q21 at 316.7 €M, +14.6% y/y
• Well diversified revenue base in terms of businesses and geographies with exposure to fast growing and attractive European markets like Italy (+10.5% y/y in 3Q21) and DACH & Poland (+18.9% y/y in 3Q21)

M&A update

• SIA results: Revenues at 207.5 €M in 3Q21 (+9.3% y/y) and 589.1 €M in 9M21 (+12.0% y/y). EBITDA at 91.6 €M in 3Q21 (+12.9% y/y) and 237.3 €M in 9M21 (+21.7% y/y)
• Nexi-SIA: Antitrust approval obtained on October 14th . Closing expected by year-end
• Transformation plan well on track, ˜100 €M cash synergies to be delivered in 2022

Confirmed 2021	▪ Revenues at ~+10% y/y growth
Nexi+Nets combined Ambition	▪ EBITDA between +11% and +13% y/y growth

New Nexi-Nets perimeter: 60% revenues from MSS (o/w 25% e-commerce), 71% revenues in fast growing markets. Significant operating leverage

Strong acceleration on domestic volumes in 3Q in Italy, continued in October. Fast recovery of Foreign Cards, almost reaching 2019 levels in August

Strong growth performance in basic consumptions and continued growth across discretionary and high impact categories

Note: Data include International schemes only. National schemes included only for ISP merchant book. Sales volumes only

Nordics back to positive volume growth. DACH still recovering driven by strong basic consumption growth

8 Note: (1) SME volumes incl. PeP. (2) Regular business, e.g. excl. Thomas Cook volumes. (3) IeS volumes reflecting number of transactions. IeS volumes excludes one off customer losses related to legacy issuing contracts in line with underlying revenue adjustment. (4) Data include transactions from international schemes, sales volumes only; national schemes Dankort and Girocard not included. Non-card based CNP transactions from e-commerce not included. (5) Last week rolling: week 25th -31st October

Continued acceleration of cash to digital payments shift across sectors, visible in all geographies

High Impact Consumption Basic Consumption Discretionary Consumption

Note: Acquiring volumes – Sales volumes only.

(1) Data include International schemes only. National schemes included only for ISP merchant book. Sales volumes only – Italian Cards only.

(2) Regular business, e.g. excl. Thomas Cook volumes. Data include transactions from international schemes, sales volumes only; national schemes Dankort and Girocard not included. Non-card based CNP transactions from e-commerce not included.

9M21 Key Business updates – focus Merchant Services

Note: SME and LAKA data referring to physical channel only.

9%¹

11

Focus on 9M21 Results

2020 and 2021 data include Nets underlying results at constant scope and FX since the beginning of the period

Strong Revenue performance leading to double-digit EBITDA growth and continued EBITDA margin expansion

Positive revenue performance across geographies, with double-digit growth in Italy and DACH & Poland

Merchant Services & Solutions: strong double-digit revenue growth across the Group driven by sustained volume performance and strong E-commerce

▪ Sustained double-digit revenue growth in 3Q21 for both Nexi and Nets

• Solid value of transactions performance driven by Italy at +15% y/y in 9M21, only partially offset by a slower growth in other geographies due to Covid-19 restrictions (+4% y/y in 9M21, +11% y/y in 3Q21)
• SME value of transactions recovering faster than large merchants, positively contributing to revenue growth
• ▪Continued E-commerce revenue growth at +32% y/y in 9M21, +37% y/y in 3Q21
• Italy: accelerating gateway activations in 9M21 +70% vs 9M19
• Other regions: strong performances in APMs (A2A in Poland and Finland, BNPL in Germany) and Easy collecting PSP in Nordics

Cards & Digital Payments: good revenue growth supported by sustained volume dynamics

• Revenue growth in 3Q21 and 9M21 with different dynamics across the Group:
• Strong double-digit revenue growth in Italy, with positive contribution from both installed-base and volume dynamics, despite subdued domestic travelers spending extra EU
• Revenue performance in other geographies still partially affected by restrictions and previously disclosed single client contract renegotiation

▪ Solid overall volume performance

• Italy: continued growth on International debit (value of transactions +25% vs 9M20) and faster than expected recovery on commercial cards (+11% y/y in 3Q21 and -8% vs 3Q19)
• Other regions: recovery on number of transactions (+3% y/y in 9M21) primarily thanks to International schemes

Digital Banking & Corporate Solutions: confirmed revenue growth supported by positive contribution from business initiatives

Continued focus on cost control. Costs comparison vs 2020 mainly affected by Covid-19 related cost containment plan

• 9M21 total costs increased primarily due to higher transaction volumes and cost containment plan in 2020
  • Personnel costs dynamic mostly related to variable compensation accruals and FTEs investments in high-growth areas, partially offset by capitalization of some Nexi ITrelated HR costs starting from 3Q21. On a like-for-like comparison¹ personnel costs substantially flat
  • Operating costs increase mainly due to variable costs linked to higher transaction volumes. On a like-for-like comparison²

Net Financial Debt / EBITDA in line with plan, at 3.0x including SIA and run-rate synergies

19

M&A update

Continued progress in creating the European PayTech leader

	SIA
3Q21 and 9M21 Standalone performance	▪ Revenues at 207.5 €M in 3Q21, +9.3% y/y and 589.1 €M in 9M21, +12.0% y/y ▪ EBITDA at 91.6 €M in 3Q21, +12.9% y/y and 237.3 €M in 9M21, +21.7% y/y
Closing Agenda	▪ 14th Antitrust approval obtained on October with remedies having no material impact ▪ Remaining approvals in progress (German regulatory authority, Danish investment authorities and Italian Stock Exchange regulator for prospectus approval) ▪ Closing expected by year-end
Transformation Plan	▪ Transformation program progressing across all 12 workstreams, with clear governance in place ▪ Day-1 go-live initiatives fully on track ▪ All value creation initiatives progressing according to plan, already securing first synergies

Clear progress in synergies achievement across all value creation levers

	Nexi - Nets	Nexi - SIA
Tech platform optimisation	▪ Defined new ▪ CapEx deduplication already in execution ▪ Group digital delivery hub live in 1Q22 ▪ Infrastructure and security operations optimization started	Group technology strategy ▪ Processing platform consolidation ready for execution ▪ Infrastructure and cloud strategy under finalization
Insourcing and operational excellence	▪ Group governance and central functions organization in place ▪ Turnover management and other HR optimization levers in place ▪	▪ Ready to execute on day 1 organization, fully integrating SIA Italian business Operational excellence initiatives definition progressing according to plan
Procurement and other costs	▪ Procurement optimization initiatives ▪ 12 strategic renegotiations already	plan fully defined closed or progressing
Revenue synergies	▪ Executing joint go-to-market on international LAKA, first wins achieved ▪ Ecomm capabilities extension to Italy progressing, 1-click Ecomm check-out live in 1Q22 ▪ Best practices sharing on SME digital distribution underway ▪ Engaging international banks on Issuing VAS (i.e. CVM)	▪ Detailed commercial plan for cross/up-selling actions already defined and ready for execution at closing*

˜100€M cash synergies to be delivered in 2022

22

Closing remarks

Confirmed 2021 combined Ambition

Combined Nexi+Nets 2021 Ambition

Assuming continued recovery from Covid-19 with no new material restrictions across geographies:

Net Revenues	~+10% y/y growth
EBITDA	+11% to +13% y/y growth +1p.p. EBITDA margin vs 2020, +3 p.p. vs 2019
Capex	Broadly stable Capex intensity ratio, anticipating M&A synergies
Leverage	Continued strong organic cash flow generation and progressive de-leverage in the medium term

Key messages

Continued volume recovery and acceleration across geographies

• Strong volume performance in Italy with Italian Cards ranging between +20% / +25% vs 2019
• Nordics back to positive volume growth. DACH still recovering driven by strong basic consumption growth
• SMEs accelerating faster than LAKAs
• Continued acceleration of cash to digital payments shift across sectors, visible in all geographies

Strong financial performance in 3Q21 and 9M21

• Revenues +10.1% vs 3Q20, +9.6% vs 9M20
• Strong revenue growth in Merchant Services & Solutions for both Nexi and Nets: +12.2% vs 3Q20 and +10.6% vs 9M20
• E-commerce revenues growing at +37% vs 3Q20 and +32% vs 9M20
• EBITDA +14.6% vs 3Q20, +12.3% vs 9M20, continued margin expansion

Continued progress in creating the European PayTech leader

• Strong SIA standalone performance
• Nexi-SIA: Antitrust approval received on Oct 14th. Closing expected by year-end
• Nexi-UBI merchant book: closing done on Oct 26th
• Nexi-Alphabank JV: signed on Nov 11th . Closing expected in 1H22
• Orderbird: strategic investment in DACH leading merchant SW solution for hospitality sector

Confirmed 2021 Nexi+Nets combined Ambition

• Revenues at ~+10% y/y
• EBITDA at +11% to +13% y/y

Nexi + Nets Combined P&L

Nexi + Nets Underlying figures1 Combined P&L –
€M	1Q20	2Q20	3Q20	9M20		1Q21	2Q21	3Q21	Δ% vs. 3Q20	9M21	Δ% vs. 9M20
Merchant & Solutions Services	288 0	269 9	334 5	892 3		285 1	326 7	375 4	+12 2%	987 2	+10 6%
Cards Digital & Payments	149 3	142 8	158 2	450 4		149 0	163 8	169 3	+7 0%	482 1	+7 0%
Digital Banking Solutions & Corporate	0 51	49 7	51 4	152 1		9 57	56 9	2 54	4% +5	169 1	2% +11
Operating revenue	488 3	462 4	544 2	1 494 8 ,		492 1	547 4	598 9	1% +10	1 638 4 ,	6% +9
Personnel & related expenses	(124 9)	(112 9)	(107 6)	(345 5)		(124 7)	(127 4)	(116 5)	+8 2%	(368 6)	+6 7%
Operating Costs	(159 7)	(150 3)	(160 2)	(470 2)		(167 2)	(174 0)	(165 7)	+3 5%	(506 9)	+7 8%
Total Costs	(284 6)	(263 3)	(267 8)	(815 7)		(291 9)	(301 4)	(282 2)	4% +5	(875 5)	3% +7
EBITDA	203 7	199 1	276 3	679 1		200 1	246 0	316 7	6% +14	762 9	3% +12

Combined P&L – Nexi + Nets Organic figures

€M	1Q20	2Q20	3Q20	9M20	1Q21	2Q21	3Q21	Δ% vs. 3Q20	9M21	Δ% vs. 9M20
Merchant Solutions Services &	288 0	269 9	334 5	892 3	285 1	326 7	375 4	+12 2%	987 2	+10 6%
Cards Digital & Payments	152 6	143 6	158 9	455 1	149 0	163 8	169 3	+6 6%	482 1	9% +5
Digital Banking & Solutions Corporate	64 2	64 8	62 9	191 8	68 7	65 9	62 0	4% -1	196 5	5% +2
Operating revenue	504 7	478 3	556 2	1 539 3 ,	502 8	556 3	606 7	+9 1%	1 665 8 ,	+8 2%
Personnel related & expenses	(130 8)	(118 7)	(112 2)	(361 6)	(129 1)	(131 2)	(119 9)	+6 9%	(380 1)	+5 1%
Operating Costs	(165 5)	(156 1)	(164 7)	(486 3)	(171 6)	(177 8)	(169 1)	+2 7%	(518 5)	+6 6%
Total Costs	(296 3)	(274 8)	(276 8)	(848 0)	(300 7)	(309 0)	(289 0)	4% +4	(898 6)	0% +6
EBITDA	208 4	203 5	279 4	691 3	202 1	247 4	317 7	+13 7%	767 2	+11 0%

Note: Nets Figures presented at constant scope (incl Polskie ePłatności, CCV Switzerland and Checkout Finland acquisitions) and FX. (1) Adjusted for commercial rebasing in 2020 and non-recurring eID revenue

% Change vs 2019 from week 15-21 Feb

ITALY

Nexi - Total Acquiring and Issuing volumes

% Change 2021 vs 2019

Nexi - Acquiring sales volumes trend by consumption category

									ITALY
Acquiring volumes by category1	Product category		% change Y/Y vs. 2019
44% for 41% for E-commerce E-commerce 31% 38% 31% 15% for E-commerce		FY20	1Q21	2Q21	Jul	Aug	Sep	3Q21	2 LWR
	Basic consumption	16%	40%	32%	30%	27%	32%	30%	36%	+37%
	of which Physical	14%	38%	31%	29%	27%	31%	29%	36%
	of which E-commerce	36%	67%	45%	42%	38%	46%	42%	46%
	Discretionary consumption	-21%	-16%	-4%	1%	6%	6%	4%	6%	+11%
	of which Physical	-23%	-19%	-5%	0%	6%	5%	3%	6%
	of which E-commerce	39%	54%	48%	28%	37%	33%	33%	28%
	High-impact consumption	-38%	-49%	-28%	3%	17%	7%	9%	11%	+16%
	of which Physical	-37%	-46%	-28%	3%	18%	9%	10%	13%
	of which E-commerce	-50%	-69%	-34%	-8%	-4%	-18%	-10%	-12%
Basic consumption Groceries, medical retail, utilities and services (e.g. insurance, bank services)	Total	-12%	-3%	2%	11%	18%	16%	15%	19%	+23%
	of which Physical	-13%	-4%	1%	11%	18%	16%	15%	19%
	of which E-commerce	-1%	5%	9%	17%	18%	17%	17%	18%
Discretionary consumption Clothing, household, other non-alimentary retail								% change	Y/Y on Italian	Cards
and other services (e.g. laundries, beauty)		Acquiring volumes: split between Physical and E-commerce
High-impact consumption		FY20	1Q21	2Q21	Jul	Aug	Sep	3Q21	2 LWR
Hotels and restaurants, travel and transports,	Physical	93%	93%	93%	94%	95%	94%	94%	94%
entertainment, etc.	E-commerce	7%	7%	7%	6%	5%	6%	6%	6%

Data include International schemes only. National schemes included only for ISP merchant book. Sales volumes only Note: (1) Category weight % (2019) calculated on Italian and Foreign cards Acquiring trx volumes. (2) Last week rolling: week 25th – 31st October

Nexi - Acquiring sales volumes – Italian Cards vs Foreign Cards ITALY % Change 2021 vs 2020

Nexi - Acquiring sales volumes trend by consumption category

ITALY

% Change 2021 vs 2020

Acquiring volumes by category1	Product category	% change Y/Y
		FY20	1Q21	2Q21	Jul	Aug	Sep	3Q21	2 LWR
44% for 41% for	Basic consumption	16%	21%	18%	16%	12%	15%	15%	+8% 9%
E-commerce E-commerce	of which Physical	14%	21%	19%	18%	13%	16%	16%	10%
31%	of which E-commerce	36%	29%	6%	-2%	4%	12%	5%	2%
38%	Discretionary consumption	-21%	4%	63%	16%	7%	11%	12%	+24% 31%
	of which Physical	-23%	2%	69%	17%	7%	11%	12%	33%
	of which E-commerce	39%	35%	-9%	-3%	1%	0%	-1%	-4%
	High-impact consumption	-38%	-37%	116%	44%	34%	37%	38%	+87% 112%
31% 15% for	of which Physical	-37%	-34%	116%	46%	34%	36%	38%	106%
E-commerce	of which E-commerce	-50%	-59%	114%	18%	41%	55%	35%	262%
Basic consumption	Total	-12%	2%	44%	24%	18%	20%	21%	+26% 33%
Groceries, medical retail, utilities and services	of which Physical	-13%	2%	46%	26%	19%	20%	21%	33%
(e.g. insurance, bank services)	of which E-commerce	-1%	1%	19%	5%	15%	19%	12%	30%
Discretionary consumption Clothing, household, other non-alimentary retail								% change	Y/Y on Italian Cards
and other services (e.g. laundries, beauty)	Acquiring volumes: split between Physical and E-commerce
High-impact consumption		FY20	1Q21	2Q21	Jul	Aug	Sep	3Q21	2 LWR
Hotels and restaurants, travel and transports,	Physical	93%	93%	93%	94%	95%	94%	94%	94%
entertainment, etc.	E-commerce	7%	7%	7%	6%	5%	6%	6%	6%

Data include International schemes only. National schemes included only for ISP merchant book. Sales volumes only Note: (1) Category weight % (2019) calculated on Italian and Foreign cards Acquiring trx volumes. (2) Last week rolling: week 25th – 31st October

-72%

-88%-90%-89%

-75%

-67%

-63%

-100

25-31

Key Highlights

▪ Resilient and diversified business

▪ Confirmed growth of volumes during

▪ Strong Revenue and EBITDA

▪ FY21 Guidance: expected revenue

growth at ˜+10% y/y and EBITDA

3Q21, back to pre-Covid growth levels

performance in 3Q21 mainly driven by a strong increase in number of

model

transactions

growth at ˜+15% y/y

SIA performance

For further details, please refer to https://www.sia.eu/en/media-events/news-press-releases

34

Investor Relations

investor.relations@nexi.it

Stefania Mantegazza

stefania.mantegazza@nexi.it