Nexi — Investor Presentation 2022

Feb 10, 2022

FY 2021 Preliminary Results Presentation

February 10th, 2022

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 growth, despite Omicron variant in 4Q21

• Double-digit volume growth in Italy compared to pre-Covid, driven by solid growth in basic consumptions and Italian Cards
• Continued positive volume growth in Nordics in 4Q21, DACH still recovering due to exposure to travel
• SMEs accelerating faster than LAKAs
• Continued acceleration from cash to digital payments visible across geographies

Strong financial performance in 4Q21 and FY21

• Revenues up +11% vs 4Q20, +10% vs FY20
• Strong revenue growth in Merchant Services & Solutions for both Nexi and Nets: +13% vs 4Q20 and +11% vs FY20
• E-commerce revenues growing at +29% vs FY20
• EBITDA +12% vs 4Q20, +12% vs FY20, with continued margin expansion

Continued progress in creating the European PayTech leader

• Nexi-SIA deal: closed at year-end 2021
• Strong SIA standalone performance
• Integration workstreams progressing according to plan with ˜100€M cash synergies to be delivered in 2022
• Strong progress in ESG with ratings in the top quartile of the industry: S&P Global at 68, +7 p.p. vs 2020, and CDP at "A-" vs "C" in 2020

2021 Ambition delivered despite Omicron variant in 4Q21

2022 Ambition¹

▪ Revenues +7% to +9% y/y

▪ EBITDA +13% to +16% y/y

Note: (1) 2020 and 2021 data include Nets underlying results at constant scope and FX since the beginning of the period. (2) 2020 and 2021 data include Nets underlying results at constant scope and FX and SIA results since the beginning of the period

Executive Summary

Volume update

• Continued volume growth in 4Q21 with only limited impact from Omicron variant and geographies developing at mixed pace:
• Double-digit volume growth in Italy compared to pre-Covid, with further acceleration in the second half of January, driven by solid growth in basic consumption (+44% vs 2019) and continued double-digit growth of Italian Cards (+26% vs 2019). Foreign Cards still behind
• Continued positive volume growth in Nordics in 4Q21, DACH still recovering due to exposure to travel. Sustained double-digit growth in basic consumption, accelerating in January both in Nordics and DACH
• Continued acceleration of cash to digital payments shift across sectors, visible across geographies

Results highlights¹

• Revenues FY21 at 2,268.8 €M, +10.0% y/y. Revenues 4Q21 at 618.1 €M, +11.1% y/y. Strong revenue performance across geographies, Italy and DACH & Poland growing double-digit in FY21
• EBITDA FY21 at 1,094.5 €M, +12.1% y/y. EBITDA 4Q21 at 319.7 €M, +11.6% y/y

M&A update

• Nexi-SIA deal: closed at year-end 2021
• SIA results: Revenues at 829.2 €M in FY21, +10.8% y/y, and 240.1 €M in 4Q21, +8.0% y/y. EBITDA at 336.5 €M in FY21, +18.3% y/y and 99.2 €M in 4Q21, +10.7% y/y
• Transformation plan well on track, ˜100 €M cash synergies to be delivered in 2022

FY21 Combined financials (Nexi + Nets + SIA)²

• Revenues at 3,041.5 €M in FY21 (+10.0% y/y) and EBITDA at 1,421.9 €M in FY21 (+13.6% y/y)
• Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets

2022 Nexi + Nets + SIA Combined Outlook

• Revenues between +7% and +9% y/y growth
• EBITDA between +13% and +16% y/y growth

Confirmed strong volume performance in Italy growing double-digit vs pre-Covid driven by Italian Cards; Foreign Cards still behind

1) LWR refers to 24-30 January vs 2019

Acceleration in the second half of January across categories, with basic consumption strongly growing compared to pre-Covid

Continued positive volume growth in Nordics in 4Q21, DACH still recovering due to exposure to travel. Basic consumption accelerating in January

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 24 – 30 Jan vs '19

7

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.

Focus on FY21 Preliminary Results

2020 and 2021 data include since the beginning of the period:

• Nets underlying results at constant scope and FX
• UBI merchant book

Achieved 2021 Ambition: double-digit Revenue and EBITDA performance with continued EBITDA margin expansion

Merchant Services & Solutions: key business update

• Strong acceleration of Smartpay digital proposition rollout in Germany
• Good customer success of new mPOS proposition in Italy, x2 sales vs previous proposition, 20% of overall frontbook
• Continued progress in vertical industry propositions (e.g. Ho.Re.Ca) go-to-market
• Increased focus on integrated software-payments propositions (e.g. Orderbird on hospitality in Germany)
• Continued extension of ISV partnerships agreements with both national market leaders and vertical specialists
• Growing contribution of direct distribution channels (x3 vs 2020 in Italy) with best practice sharing across the Group
• Launch of Easy collecting PSP proposition in Germany; continued success in the Nordics
• Sustained performance on Xpay gateway proposition in Italy (gateway activations at +50% in FY21 vs FY19)
• 1-click checkout capabilities extension to Italy progressing
• Progress in commercial roll-out of Pay-by-Account (PagoInConto) open banking based owned APM in Italy
• Continued strong performance of owned A2A APMs in Poland and in Finland, with launch of new A2A marketplace solution in Finland and BNPL in Poland
• Continued third-party APM enablement across markets (i.e. BancomatPay in Italy)
• Strong BNPL RatePay growth in Germany, extending partnerships with other BNPL providers in all markets
• Extension of eCommerce enablers partnerships across markets (e.g. BigCommerce preferred partner in Italy); 15+ partnerships/plugins covering >75% of relevant market
• Sustained performance in customer tenders in focus industries (e.g. food retail, household goods, mobility, public admin) with flagship wins against both digital native and traditional competitors on national and regional LAKA
• Acceleration in sales activities on cross-border merchants in core markets, both on existing Nexi and Nets merchants and new ones
• Good progress on new omnichannel gateway roll-out in Italy, starting to include also Sia corporate payments solutions
• Increase in ERP/backend software integrations (e.g. Salesforce cloud, Sap Hybris) for omni-channel management
• Continued focus on VAS range extension, such as Analytics Pro data-enabled proposition in the Nordics and Transaction Risk Analysis tools in Italy
• Volumes affected by Covid-19 effects on high impact sector and de-risking of Nets travel sector

LAKA

9%¹

SME

59%¹

23%¹

Ecomm

+7%

In 4Q21 vs 4Q19

Value of trx

Net of high impact sector

11 Note: SME and LAKA data referring to physical channel only. Value of trx: Sales volumes only. For Nexi Italy: Data include International schemes only, National schemes included only for ISP merchant book. For Nets data: Regular business, e.g. excl. Thomas Cook volumes. Data include transactions from international schemes. (1) Weight on total FY21 Merchant Services & Solutions revenues. Remaining 9% includes cash acquiring revenues not attributable

Value of trx

Value of trx

+20% In 4Q21 vs 4Q19

Merchant Services & Solutions: accelerated double-digit revenue and volume growth despite Omicron variant

▪ Strong double-digit revenue growth in FY21 for both Nexi and Nets

• ▪Accelerated value of transactions performance across the Group: Italy at +16% y/y in FY21 and +19% y/y in 4Q21, other geographies at +7% y/y in FY21 and +16% y/y in 4Q21
• SME value of transactions recovering faster than large merchants, positively contributing to revenue growth
• ▪Continued E-commerce revenue growth at +29% y/y driven by strong performances in APMs (A2A in Poland and Finland, BNPL in Germany) and Easy collecting PSP in Nordics

Cards & Digital Payments: key business update

• Good traction on Credit on licensing banks supported by continued growth of BNPL installment solutions (˜1.5M of activated plans to date, +67% y/y in FY21), and Credit Premium, with double-digit growth on card stock
• Continued growth on international debit, with increasing card stock (+1.5M cards y/y in FY21) and value of managed transactions (+29% y/y in FY21; +39% y/y in 4Q21); strong traction of Debit Premium proposition with distinctive proposal and VAS
• Continued growth of National Debit value of managed transactions (+12% y/y in FY21). Ongoing engagement with Bancomat to develop nextgen platform and solutions
• Growing interest on B2B virtual commercial cards for working capital optimization (+118% y/y in FY21 value of transactions)
• Further growth of c-less transactions (from 66% pre-Covid to 84% in December)¹ and continued growth in mobile payments transaction volumes (+102% y/y in FY21; +123% y/y in 4Q21)
• Nordics issuer business completely reshaped. 97% of Nordics legacy contracts now renegotiated
• Nordics & rest of Europe

Italy

• New customer wins also outside the Nordics, working on attractive pipeline
• Successful expansion of existing relationships in the Nordics with more valuable propositions (e.g. CMS / AMS solutions to one of the largest banks in the Nordics)
• Strong focus on up-selling Nexi value richer propositions (e.g. CVM) to customer base banks

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

• Revenue growth in 4Q21 and FY21 with different dynamics across the Group:
• Strong double-digit revenue growth in Italy both in FY21 and 4Q21, from both installed-base and volumes, despite very limited international travel recovery
• Revenue performance in other geographies still affected by previously disclosed single client contract renegotiation. Revenue recovery in 4Q21 thanks to volume growth

▪ Solid overall volume performance

• Italy: strong performance on number of transactions (+28% y/y in FY21, +30% y/y in 4Q21) and value of transaction (+15% y/y in FY21, +20% y/y in 4Q21 )
• Other regions: continued recovery on number of transactions (+5% y/y in FY21) with an acceleration in 4Q21 (+10% y/y), primarily thanks to International schemes

Digital Banking & Corporate Solutions: key business update

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

Strong revenue performance across geographies, Italy and DACH & Poland growing double-digit in 2021

4Q20 4Q21 FY20 FY21

4Q20 4Q21 FY20 FY21

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

• FY21 total costs increased primarily due to higher transaction volumes versus last year and unwinding of 2020 cost containment plan. On a like-for-like comparison1,2 total costs substantially flat y/y
• 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 slightly decreasing at -0.8%
• Operating costs increase mainly due to variable costs linked to higher transaction volumes. On a like-for-like comparison² operating costs at +1.8%

Continued investments to support quality, innovation and IT transformation

Group Capex evolution trending towards 8-10% ordinary level, with transformation and integration capex peaking in 2022 to support new Group integration

• Group Ordinary Capex intensity ratio structurally at ˜8-10%, including investments for ordinary innovation
• Additional ˜³⁰⁰ €M of Transformation and integration Capex by 2024-2025 including:
• former transformation Capex (Nexi, Nets and SIA standalone), net of one-off capex synergies
• New Group integration capex related to Nets and SIA integrations, to deliver the announced synergies (part of the previously announced 320 €M integration costs)

Transformation Costs and Non recurring items

Cash Flow conversion at 78%

profit

Net Financial Debt / EBITDA in line with plan, at ˜3x including SIA and run-rate synergies

Net Financial Debt (€M)
Nets closing SIA closing
	Dec 20	Mar 21	June 21	Sept 21	Dec 21
Financial Debt Gross	2 781 ,	3 648 ,	721 5 ,	6 376 ,	7 474 ,
Cash	499	1 591 ,	3 727 ,	2 168 ,	2 230 ,
1 Cash Equivalents	149	154	67	65 2	71
Financial Debt Net	2 133 ,	1 904 ,	1 928 ,	4 142 ,	5 174 ,
		˜3x incl. run-rate synergies
	3.5x	3.2x	3.0x	3.9x	3.6x
	FY20	LTM 1Q21	LTM 2Q21	LTM 3Q21	FY21
LTM EBITDA (€M)	601	604	638	1,0613	1,4223

Key Highlights

• SIA bank debt, refinanced in 1H21, fully reimbursed on January 3rd, 2022 for a notional amount of ˜873€M by using already available cash
• Following the completion of the SIA merger, one notch rating upgrade to "BB" from "BB-" by S&P, which also kept the "positive" outlook

2021 Ambition delivered despite Omicron variant

February 2021 (Nexi only)

Assuming gradual recovery from Covid-19 in 1H21 broadly in line with the current trajectory:

Net Revenues	Mid-high single digit y/y growth
EBITDA	Broadly stable EBITDA margin, +3 p.p. vs 2019
Capex	Broadly stable Capex intensity ratio, anticipating M&A synergies
Leverage	Continued strong organic cash flow generation and de-leveraging profile

July 2021 (Nexi+Nets)

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

~+10% y/y growth

+11% to +13% y/y +1p.p. EBITDA margin vs 2020, +3 p.p. vs 2019

Broadly stable Capex intensity ratio, anticipating M&A synergies

Continued strong organic cash flow generation and progressive deleverage in the medium term

Delivered

+10.0% y/y

+12.1% y/y +1p.p. EBITDA margin vs 2020, +3 p.p. vs 2019

Integration update

Integration workstreams and synergies progressing according to plan

	Nexi - Nets	Nexi - SIA
Tech platform optimisation	▪ Defined new ▪ CapEx deduplication already in execution ▪ Group digital delivery hub live, scale-up in progress ▪ Infrastructure and security operations optimization in progress	Group technology strategy ▪ Processing platform consolidation started ▪ 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 progress ▪	▪ Day-1 organization in place, fully integrating SIA Italian business Operational excellence initiatives definition proceeding according to plan
Procurement and other costs	▪ Procurement optimization initiatives ▪ 20 strategic renegotiations already	plan fully in progress closed
Revenue synergies	▪ Executing joint go-to-market on international LAKA, first wins achieved ▪ Ecomm capabilities extension to Italy progressing, 1-click Ecomm check-out under development ▪ Best practices sharing on SME digital distribution underway ▪ Engaging international banks on Issuing VAS (i.e. CVM)	▪ Commercial plan for cross/up-selling actions under execution

Targeting 100 €M cash synergies in 2022, ˜125 €M 2022 run-rate, in addition to >65 €M one-off capex savings already secured

Key Highlights

~320 €M total recurring cash synergies with possible 10%+ synergies' upside in the long term

• Cost synergies coming from:
• tech platforms and infrastructure optimization and consolidation

• 25 strategic renegotiations on procurement

• insourcing and organizational excellence
• Revenue synergies mainly focused on cross/up-selling to financial institution, corporates and PA for Nexi-Sia, on proposition cross-fertilization for Nexi-Nets (e.g. E-commerce)

27

Combined Nexi + Nets + SIA FY 2021 Preliminary Results

2020 and 2021 data include since the beginning of the period:

• Nets underlying results at constant scope and FX
• UBI merchant book
• SIA results at constant scope and FX

Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets

Double-digit revenue and EBITDA performance on the new larger perimeter

Positive performance in all business units with double-digit growth in Merchant Services & Solutions

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

2022 Nexi + Nets + SIA Combined Ambition

Nexi at IPO Guidance¹

Net	▪
Revenues	5-7% annual net revenue growth over medium term

EBITDA	▪ 13-16% annual EBITDA growth over medium term
	▪ Continued strong operating leverage

▪ 8-10% ordinary capex as % of net revenues over long
term

▪ Rapid further decrease of non-recurring items affecting reported EBITDA

▪Organic de-leveraging with target net debt of ~2.0-2.5x EBITDA over medium to long term

2022 Nexi + Nets + SIA Ambition

2021 Revenues 3,042€M

Assuming exit from Covid-19 from the beginning of 2Q22:

• 7-9% net revenue growth
• Double-digit growth in Merchant Services & Solutions
• 13-16% EBITDA growth, +2 p.p. EBITDA margin expansion
• Delivered synergies partially reinvested in E-commerce and Germany acceleration
• 8-10% ordinary capex as % of net revenues
• Transformation and integration costs rapidly decreasing. 2022 almost halved compared to 2021 combined Group level
• ˜300 €M Transformation and integration Capex by 2024-2025
• Continued organic de-leverage with target net debt of ~2.5x EBITDA including run-rate synergies

Leverage

Capex

Non recurring Items

Closing remarks

Key messages

Continued volume growth, despite Omicron variant in 4Q21

• Double-digit volume growth in Italy compared to pre-Covid, driven by solid growth in basic consumptions and Italian Cards
• Continued positive volume growth in Nordics in 4Q21, DACH still recovering due to exposure to travel
• SMEs accelerating faster than LAKAs
• Continued acceleration from cash to digital payments visible across geographies

Strong financial performance in 4Q21 and FY21

• Revenues up +11% vs 4Q20, +10% vs FY20
• Strong revenue growth in Merchant Services & Solutions for both Nexi and Nets: +13% vs 4Q20 and +11% vs FY20
• E-commerce revenues growing at +29% vs FY20
• EBITDA +12% vs 4Q20, +12% vs FY20, with continued margin expansion

Continued progress in creating the European PayTech leader

• Nexi-SIA deal: closed at year-end 2021
• Strong SIA standalone performance
• Integration workstreams progressing according to plan with ˜100€M cash synergies to be delivered in 2022
• Strong progress in ESG with ratings in the top quartile of the industry: S&P Global at 68, +7 p.p. vs 2020, and CDP at "A-" vs "C" in 2020

2021 Ambition delivered despite Omicron variant in 4Q21

2022 Ambition¹

▪ Revenues +7% to +9% y/y

▪ EBITDA +13% to +16% y/y

Nexi + Nets Combined P&L

Combined P&L – Nexi + Nets Underlying figures¹

€M	FY20	FY21	Δ% vs. FY20	4Q20	4Q21	Δ% vs. 4Q20
Merchant Services & Solutions	1,242.1	1,383.0	+11.3%	338.5	383.4	+13.3%
Cards & Digital Payments	613.5	658.6	+7.4%	163.2	176.5	+8.2%
Digital Banking & Corporate Solutions	206.8	227.2	+9.8%	54.7	58.1	+6.2%
Operating revenue	2,062.5	2,268.8	+10.0%	556.4	618.1	+11.1%
Personnel Costs	(468.9)	(488.4)	+4.2%	(122.9)	(119.3)	-2.9%
Operating Costs	(617.4)	(686.0)	+11.1%	(147.0)	(179.0)	+21.8%
Total Costs	(1,086.3)	(1,174.3)	+8.1%	(269.9)	(298.4)	+10.6%
EBITDA	976.2	1,094.5	+12.1%	286.5	319.7	+11.6%

SIA standalone performance

Key Highlights

• Resilient and diversified business model
• Continued growth of volumes during 4Q21, back to pre-Covid growth levels, despite Omicron variant
• FY21 Guidance² over-delivered: strong Revenue and EBITDA performance in FY21 mainly driven by a strong increase in number of transactions

Nexi + Nets + SIA Combined P&L

Combined P&L – Nexi + Nets Underlying figures¹+ SIA

€M	FY20	FY21	Δ% vs FY20	4Q20	4Q21	Δ% vs 4Q20
Merchant & Solutions Services	1 402 9 ,	1 567 9 ,	+11 8%	386 0	441 9	+14 5%
Digital Cards & Payments	899 6	976 6	6% +8	247 4	261 8	8% +5
Digital Banking Solutions & Corporate	462 1	497 0	6% +7	132 3	137 6	0% +4
Operating revenue	2 764 5 ,	3 041 5 ,	+10 0%	765 8	841 3	+9 9%
Personnel Costs	(678 1)	(710 3)	8% +4	(181 9)	(177 6)	2 3% -
Operating Costs	(835 0)	(909 3)	+8 9%	(213 6)	(250 3)	+17 2%
Total Costs	(1 1) 513 ,	(1 6) 619 ,	+7 0%	(395 5)	(427 9)	+8 2%
EBITDA	1 251 4 ,	1 421 9 ,	+13 6%	370 3	413 4	+11 7%

Investor Relations

investor.relations@nexigroup.com

Stefania Mantegazza

stefania.mantegazza@nexigroup.com