Seco — Investor Presentation 2021

May 13, 2021

Endless ways to the future

May 13, 2021

Endless ways to the future

DISCLAIMER

This document has been prepared by SECO S.p.A. ("SECO" or the "Company"), for information purposes only, exclusively with the aim of assisting you to understand and assess the activities of SECO. The information contained in this presentation does not purport to be comprehensive and may not have been independently verified by any independent third party.

Statements contained in this presentation, particularly regarding any possible or assumed future performance of the SECO Group, are or may be forward-looking statements based on SECO's current expectations and projections about future events.

Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results, including the financial condition and profitability of SECO to differ materially from, or be more negative than, those expressed or implied by such forward-looking statements, due to any number of several factors, many of which are beyond the ability of SECO to control or estimate precisely. Consequently, SECO and its management can give no assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual occurrence of the predicted developments.

The data and information contained in this document are subject to variations and integrations. Although SECO reserves the right to make such variations and integrations when it deems necessary or appropriate, SECO assumes no affirmative disclosure obligation to make such variations and integration, except to the extent required by law.

SECO does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

Any reference to past performance of the SECO Group shall not be taken as an indication of future performance.

In addition, this presentation includes certain ''Adjusted'' financial and operating indicators and other measures, which have been adjusted to reflect extraordinary events, non-recurring transactions and activities which are not directly related to the Group's ordinary business.

Such "Adjusted" information has been included to allow a better comparison of financial information across the periods; however, it should be noted that such information is not recognized as measures of financial performance or liquidity under IFRS and/or do not constitute an indication of the historical performance of the Company or the Group. Therefore, investors should not place undue reliance on such data and information.

This presentation does not constitute a recommendation regarding the securities of the Company.

This document does not constitute or form part of any offer or invitation to purchase or subscribe any shares issued by the Company and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

By attending this presentation, you agree to be bound by the foregoing terms.

TODAY'S SPEAKERS

Massimo Mauri CEO

Lorenzo Mazzini CFO

Marco Parisi Head of Investor Relations

SECO AT A GLANCE A G L O B A L L E A D E R I N T H E I o T S P A C E

450+

3 production

Worldwide

Direct Presence in

Q1 2021 HIGHLIGHTS

+10%

Total Revenues¹ growth

€20.2m in Q1 2021 (vs. €18.4m in Q1 2020)

• CLEA already generating ~€0.5m software revenue
• EMEA, USA and APAC markets all growing in absolute terms

+10% Gross margin growth

+40% Adj. EBITDA growth

€9.8m in Q1 2021 (vs. €9.0m in Q1 2020)

• 50.6% in Q1 2021, vs. 49.1% in Q1 2020
• Benefits from CLEA deployment and related NRE² activities
• Custom edge systems increasing in absolute value terms vs. Q1 2020

€4.6m in Q1 2021 (vs. €3.3m in Q1 2020)

• 23.7% in Q1 2021, vs. 18.0% in Q1 2020
• Significant operating leverage effect driving profitability upwards
• Payroll cost increase mainly related to management team and R&D department new hires

KEY TAKEAWAYS FROM 2021 YTD

SECO best in class player reporting higher growth than industry peers

Growing and highly profitable business despite Covid pandemic, strongly driven by the digitalization macro-trend

CLEA launch well received by existing and new customers

Book/bill ratio and pipeline continuously increasing

Design wins + long-term relationships with Tier 1 clients ensuring strong revenue visibility

World-class companies trusting SECO to give life to win-win partnerships (e.g. Microsoft, Olivetti), thus further accelerating the top-line growth

Well defined M&A strategy supported by IPO ~€100m capital increase

TOTAL REVENUES

• Good performance in Covid-impacted Q1 2021, vs. Q1 2020 mainly unaffected by the pandemic
• Impact of CLEA roll-out visible in Q1 2021 (already ~€0.5m software revenue generated in the period)
• Growth strongly driven by anti-cyclical nature of the business: recovery in Industrial, Fitness, Transportation; good and stable performance in the Medical sector
• EMEA, USA and APAC markets all growing in absolute terms

GROSS MARGIN

• Highest-performing quarter in terms of incidence on revenue, substantially in line with last quarter of 2020 in euro terms
• CLEA's roll-out starting to show positive impact in terms of margin from recurring revenue, and NREs from platform customization
• Gross margin positively impacted by custom edge systems revenue increasing in absolute value terms vs. Q1 2020, with an average price per unit higher than standard edge platforms

ADJUSTED EBITDA

• Business growth significantly contributing to operating leverage, further enhanced by a tight cost control on OPEX
• Payroll cost increase mainly related to management team and R&D department strengthening in Q2-Q4 2020
• Adjustments mainly related to the present value of the stock option plan 2020 assigned to some managers, M&A transaction costs (€312k), compensated by foreign exchange gains (€237k)

NET DEBT POSITION

• Adj. NFP/Adj. EBITDA¹ ratio slightly increased from Q4 2020
• Cash absorption mainly related to increase in inventory and lower amount of trade receivables cashed in via non-recourse sale (pro-soluto)
• VAT receivables can be cashed in the days following the end of each quarter
• Net debt position not including ~€100m IPO proceeds

STRONG BACKLOG GROWTH

EMEA 22%

STRONG PIPELINE OF NEW DESIGN WINS AND PROJECTS

TIM GROUP's INTEREST IN SECO

Today

Next steps¹

Strong and solid organic growth (good revenue visibility, increasing backlog)

Continuous margin improvement thanks to progressive CLEA rollout

Olivetti-TIM Group partnership as enabler to further growth both on edge computing and CLEA

Quality M&A to accelerate growth and value creation for shareholders

We expect a solid growth path to further accelerate in 2021, both in revenue and profitability terms

Endless ways to the future

REVENUE AND COST MODEL

BUSINESS MODEL

High revenue visibility

Endless ways to the future

FINANCIALS OVERVIEW

€mln	Q1 2020	Q1 2021
Net Sales	18 3	19 4
Consumption Costs	(9 3)	(9 6)
Gross Margin	9 0	9 8
% on Net Sales	49 1%	50 6%
Other revenues	0 1	0 8
Personnel costs	(3 9)	(4 4)
Other Opex	(2 1)	(2 0)
Exchange gains/losses	-	0 2
EBITDA	3 1	4 5
% on Net Sales	16 9%	23 3%
Depreciation	(1 0)	(1 4)
EBIT	2 0	3 1
% on Net Sales	11 2%	14 7%
Financial expenses	(0 1)	(0 1)
Tax	(0 5)	(0 8)
Net Income	1 4	2 2
% Sales on Net	8% 7	4% 11
Non recurring items	0 2	0 1
EBITDA ADJ	3 3	4 4
% on Net Sales	18 0%	23 7%

Income Statement Balance Sheet Balance Sheet

€mln	Q4 2020	Q1 2021
Net	35	38
Working	9	9
Capital
Total	35	32
Fixed	5	8
Assets
Other	1	1
non-current	1	5
assets
Provisions and other non-current liabilities	(3 7)	(3 8)
Net	68	69
Invested	8	3
Capital
Net	17	18
Financial	8	9
Position
Total Equity	51 0	50 4
Total Funds	68 8	69 3

Endless ways to the future

Endless ways to the future

ABOUT US V I S I O N A N D M I S S I O N

Vision WHY HOW

We exist to open up the world to innovation

Promise WHAT

End-to-end technologies that transform possibilities into concrete innovation

Mission

We bring together technologies and skills to answer new needs and opportunities

Values

Passion Dynamism Respect

S E C O E v o l v e d f r o m a S u p p l i e r o f S t a n d a r d E m b e d d e d C o m p u t i n g C o m p o n e n t s i n t o a G l o b a l l y D i v e r s i f i e d I o T p l a y e r

ESTABLISHMENT

• Leader in embedded products
• First mover & cutting-edge technologies' adopter
• Scale-up of manufacturing capabilities

DEVELOPMENT

• Implementation of customized embedded systems
• Internationalization
• Further expansion in multiple verticals

SECO 3.0

• Leader in custom Edge Computing & IoT products & solutions
• Flexible and scalable business model
• Managerialization and M&A campaign

I N T E R N AT I O N A L P R E S E N C E Commercial presence ABOUT US Direct Presence

R&D Production

450+ People

Global Commercial Presence

Direct Presence in 9 countries

Worldwide Distribution

WHAT WE DO

W e r e m o v e t e c h n o l o g i c a l c o m p l e x i t y t o o u r c l i e n t s , a l l o w i n g t h e m t o f o c u s o n t h e i r o w n c o r e b u s i n e s s

R&D COMPETENCES HARDWARE / SOFTWARE / SYSTEM INTEGRATION

Integrated systems, boards, modules, HMIs for Edge Computing

Putting intelligence in things and enabling human-machine interaction

Enhanced edge computing capabilities into our customers' products

IOT / DATA SCIENCE / ARTIFICIAL INTELLIGENCE / DATA ORCHESTRATION

RESEARCH, EDUCATION & PARTNERSHIPS

Software services and platforms

Extracting data, bringing them to the cloud. Transforming them in highly-valuable, real-time information through data orchestration and data analytics

End-to-End suite enabling our customers' data-driven decision making

23

Advanced research

Innovative start-ups screening, collaborations with universities

A multi-disciplinary environment fostering new ideas for the next generation of innovation

WHAT WE DO R & D C O M P E T E N C E S

E x p e r i e n c e i n d e v e l o p i n g p r o d u c t s l e v e r a g i n g t h e m o s t i n n o v a t i v e p l a t f o r m s f r o m l e a d i n g Te c h n o l o g y P r o v i d e r s

SECO cooperates in a co-design approach with the most important technology players, adopting new technologies for edge computing

E A R L Y A C C E S S P R O G R A M ( " E A P " ) S e l e c t i o n P r o c e s s & T i m e t a b l e

Chip vendor uncovers new technology to selected Partners, calling for product proposals

Partners are selected for EAP based on capability to manage state of the art technology

Solutions from partners are the primary go to market strategy being available at mass market launch

WHAT WE DO E N D - T O - E N D I O T O F F E R I N G C R E A T I N G H I G H V A L U E F O R O U R C U S T O M E R S

WHAT WE DO E D G E C O M P U T I N G

Full offering of single boards, modules, boxes and gateways with design compliant to the most widely used standards

Custom carrier boards + modular solutions

Modular HMIs

Semi-custom products are based on a combination of standard embedded products and tailored accessories or electronics developed for the specific application

From the design (with intellectual property) to the engineering and manufacturing of the whole system based on customer's needs

WHAT WE DO O F F -T H E - S H E L F P R O D U C T S

PRODUCT LINES STANDARDS SBCs Modular Solutions Systems eNUC Pico-ITX Qseven COM Exp. SMARC COM HPC KEY FEATURES • Ready-to-use products with minimal time to market • Long-term availability • Design to be operated in harsh environments • Support popular industrial I/O interfaces not available in consumer PCs • Ready-to-use products with reduced time to market • Large room for system upgrade with no redesign efforts • High flexibility in terms of applications • Ready to use for age, industrial control and IoT applications • Wide wired and wireless connectivity options 3.5" ETX uQseven HMI Boxed Sol. Gateways

WHAT WE DO S E M I - C U S T O M E D G E S Y S T E M S

PRODUCT LINES

KEY FEATURES

Custom carrier boards + modular solutions

• SECO designs, or co-designs with end customers, application-specific carrier boards for standard module hosting

• Improved balance between time to market and cost effectiveness with respect to standard solutions
• Tight integration, both on hardware and software perspectives and certification support
• Reduced total cost of ownership with SECO taking care of prototyping, industrial engineering, production and post sales services

Modular HMIs

• Higher fit with the application
• Balance between full-custom cost optimization and standard product development

F U L L C U S T O M E D G E S Y S T E M S

PRODUCT LINES

KEY FEATURES

Integrated Systems

WHAT WE DO

• Display / HMI-based technologies + tailor made OS, application SW and IoT stack
• Customized TFT display and touch screen
• Integrated system including full custom electronics

Entirely custom design, providing the highest cost efficiency, integration level and fit with respect to the specific application

Co-design by SECO and client

• Close cooperation between SECO's R&D and client's Operations

Fully fledged product design

• Hardware/Software, BIOS, engineering & development

In-house manufacturing process

• In-house manufacturing to supervise every production step
• Client's software or specific components may be adapted and installed into the system

Top quality finished products

• Continuous feedback with the customer

WHAT WE DO F R O M E D G E T O A I C O M B I N I N G H A R D W A R E A N D A I S U I T E

Clea is a software platform combining software, AI, Edge and Cloud computing turning field data into actionable and measurable insights within a single, one-stop solution that comes with natively integrated hardware.

VENDING Market Applications

FITNESS Market Applications

COFFEE Market Applications

MEDICAL Market Applications

For OEM and professional developers who want to quickly deploy an IoT solution from PoC to Production. WHO

Both ready to use and easily customizable service for applications ranging from small projects to large Enterprise solutions. HOW

Development of Modular Solutions

Ensuring complete integration with existing infrastructures

Fleet Manager and Device Manager

IT managers can control the whole device fleet while SECO Team manages the devices' hardware

Secure FOTA (Firmware Over The Air)

Remotely update the devices' firmware and install new features

Device Status

Check the status of all the connected devices (online/offline, size of free storage memory, id info, connectivity info)

Data Visualization Front-end and Apps

SECO can develop mobile apps and front-end services specifically tailored for customers' own use

Data Flow

Manage the data flow to move them from the hardware to the cloud

Custom AI algorithms on the Edge & Cloud

Data Analytics allows to develop AI Algorithms that adding significant value for clients in terms of ROI

Data Analytics, Telemetry and Data Orchestration

All the data coming the fleet are always under control, and can be easily sorted, clustered, downloaded and visualized

All-in-One IoT Platform

Allowing customers to be IoT-ready through cloud connected hardware, software, devices manager, IoT apps

Geolocalization

Detect devices' geographic location in a map with great accuracy. Data can be sent via cell-ID + Wi-Fi or GPS

Logs Reading

A useful feature to debug and retrieve low-level analysis

Mobile, Wi-Fi and Bluetooth Connectivity Manager

A BLE Mobile App that allows clients to manage Wi-Fi and SIM/eSIM Connectivity

"All together we can look with confidence to the future: at SECO, we build it every day"

Daniele Conti and Massimo Mauri, SECO President and CEO

Startups & Professionals

We amplify the power of innovative solutions through commercial partnerships, equity investments, acquisitions

We find innovative solutions to innovation needs through Open Innovation contracts

Incubators / Accelerators / VC

We build relationships to support startups in finding business opportunities through the creation of partnerships

Universities, Research Centers, Scientific Foundations

We finance research and promote the application of academic research to business through scholarships and internships

HOW WE DO IT K E Y C O M P E T E N C E S I N M U LT I P L E A P P L I C AT I O N D O M A I N S

Complexity Reduction | Full customization and support at HW & SW level | Support for Product Certification, Validation & Verification

HOW WE DO IT R E L I A B L E P R O D U C T S A N D P R O C E S S E S

HOW WE DO IT E N A B L I N G O U R C U S T O M E R S T O C U T D E V E L O P M E N T C O S T S A N D T I M E T O M A R K E T

HOW WE DO IT F L E X I B L E P R O D U C T I O N P R O C E S S

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y | 2 0 2 0 M A I N A C T I V I T I E S HOW WE DO IT

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New certifications obtained in 2020 ISO:13485, ISO:14001, ISO:27001

New products for Biomedical & Wellness applications 20+ new products overall in 2020

Suppliers certified according to ESG criteria Certification process started in 2020

Share of electricity from renewable sources

New agreement signed with energy supplier for Arezzo and Tregozzano plants

Aluminum bottles distributed to employees to minimize the use of plastic

Endless ways to the future

Thank you www.seco.com

Endless ways to the future