Seco — Investor Presentation 2022

Nov 10, 2022

S E C O : 9 M a n d Q 3 2 0 2 2 R e s u l t s a n d B u s i n e s s u p d a t e p r e s e n t a t i o n

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 or may include 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 reading this presentation, you agree to be bound by the terms set out.

Here today

Massimo Mauri CEO

Marco Parisi Head of Investor Relations

Lorenzo Mazzini CFO

• GPM incidence stable in 9M 2022 vs. FY 2021, at 47.1%;

• Critical components stocking: investments continued in Q3 2022, a strategic decision to secure future growth • €4.2m cash generation in the last two quarters thanks to strong business expansion

• CLEA business at €15m in 9M 2022 (10% of sales), +548% vs. 9M 2021

• FY 2022 Net sales guidance at €200m confirmed thanks to orders already in backlog

• Order backlog at €169m at 31.10.22, vs. €114M (October 2021), +48% on a like-for-like basis

• 9M 2022: Net sales at €144.8m, +116% vs. 9M 2021 (+53% organic growth, +43% on a like-for-like basis) • Adj. EBITDA at €32.1m (22.1% of sales), +128% vs. 9M 2021 • Q3 2022: strong acceleration of revenue (+102% vs. Q3 2021) • More than proportional Adj. EBITDA growth, +151% vs. Q3 2021 (23.6% of Net sales)

Key takeaways from 2022 YTD

Revenue growth driving operating leverage

Focus on Q3 2022

may be deltas for up to ±€0.1m when variation figures are displayed

Quarterly performance focus

9M 2022 financial highlights

• Edge computing business growing at 101% in 9M 2022 vs. 9M 2021

• 47.5% of net sales in Q3 2022, vs. 46.8% in H1 2022 • Price increase actions adopted in previous quarters have helped improve the gross margin incidence

• Financial expenses: +€2.7M higher vs. 9M 2021, largely due to G&F acquisition financing

• 9M 2022 Net sales growing by +116% vs. 9M 2021 (+53% organic, +43% on a like-for-like basis)
• Edge computing business at +101% in 9M 2022, largely thanks to a growth in the Industrial, Fitness, Medical, Vending industries

Net sales breakdown (9M 2022)

Net sales

• CLEA business continuting its expansion trend, hitting €15m revenue in 9M 2022 (+548% vs. 9M 2021) of which €5m in Q3 2022
• EMEA, APAC, USA markets all showing growth trends

Adjusted EBITDA

Adjusted EBITDA bridge (€m)

Note: all numbers in €m are rounded to the closest first decimal place, so there may be deltas for up to ±€0.1m when variation figures are displayed

Adjusted Net financial position

Business update

(cont'd)

Scaling up the value chain…

Digitalization: a just-started secular trend, creating a huge market for smart devices

Process automation & optimization Smart devices AI as an enabler of real-time data analysis AI

S E C O ® - S t r i c t l y p r i v a t e a n d c o n f i d e n t i a l

…From Hardware to Service company

Solving complexity for our customers, allowing them to just focus on their own core business

1.5x

increase

1.5x Order backlog increase without SECO N.E. contribution

Legend

(±…%) Change vs. Oct. 2021

October '22 backlog

Increased visibility on FY 2022 and 2023

Edge computing business

Diversified base of new projects, increasing pipeline, ensuring independence from any particular market

What's next? Adding new functionalities and use cases to our portfolio

Integrated sensors to offer a complete solution: from on-field data extraction to its real-time AI processing

Proprietary and on-edge AI algorithms helping in define on-time corrective actions

Neural networks for an AI-boosted data inference

Raise safety level of human-machine interactions in industrial space

Improved user experience with HMI, connectivity, secure payment system and AI integrated solutions

Edge computing business

CLEA business

CLEA business

Increasing stream of new adopters and testers, with pricing structure tailored to any customer's business model

CLEA App Store: a catalogue of apps for any need

In progress along with our customers, specific by vertical, to fully exploit the potential of data in each sector

Defining the new industry end-to-end standards

Leveraging our cross-vertical expertise

Lead times

Working capital improvement

Components' market update

Starting to observe encouraging signs of improvement, hinting at gradual return to a normal scenario

Market signals… …and potential post-normalisation impacts

Q & A

(cont'd)

A N N E X

Financials overview

Income Statement

€mln	9M 2021	9M 2022
Net Sales	66,9	144,8
Consumption Costs	(35,4)	(76,6)
Gross Margin	31,5	68,1
% on Net Sales	47,1%	47,1% 3,5 (25,9) (16,2) 0,5 29,9
Other revenues	1,8
Personnel costs	(14,1)
Other Opex	(7,6)
Exchange gains/losses	0,4
EBITDA	12,1
% on Net Sales	18,0%	20,7%
EBITDA ADJ	14,1	32,1
% on Net Sales	21,0%	22,1%
Depreciation	(4,5)	(9,9)
EBIT	7,1	19,6
% on Net Sales	10,6%	13,5%
Financial expenses	(0,4)	(3,1)
Tax	(1,8)	(4,9)
Net Income	5,3	12,0
% on Net Sales	8,0%	8,3%

Balance Sheet
FY 2021	9M 2022
52,5	79,6
233,3	297,0
3,1	2,9
(16,4)	(17,6)
272,5	361,9
109,5	130,9
97,5	121,6
163,0	230,9
272,5	361,9

Revenue and cost model

Business model

Adjusted Net Income

~ 300 R&D people of which ~180 in AI algorithms development

10 R&D centers 5 production plants

~ 8-10% of revenue invested in R&D every year

>900k devices manufactured every year

€200M 2022 FY expected revenue

SECO at a glance

A worldwide spread center of excellence, with top-tier capabilities…

A highly committed management team

20+ years experience as executive in several Tech companies

Carlos Valeiras CEO SECO USA

Former CFO of SECO USA from 2020

Michael Duhamel Vice President of Sales

SECO USA

20+ years of experience in sales and marketing for the largest industrial, embedded and automation solution providers

Previously in Eurotech USA

Founder and General Manager of Fannal Electronics (2011 – present)

Lesen Ding

CEO Fannal Electronics

Davide Catani CTO

Joined SECO in 2006 CTO since 2020, after serving as Hardware developer and ARM-based platforms R&D manager

Daniele Conti President & Co-Founder

Co-founder of SECO. He has been serving as president of the company for over 40 years

Under his leadership, the Group has grown in terms of technological expertise, human resources and financial performances

Vincenzo Difronzo CSO

15+ years sales experience in worldwide leading hardware and software companies

Joined SECO in 2015

Angelo Peloni COO

20+ years experience in Operations & Supply chain management Joined SECO in 2003

Simona Agostinelli

Chief Marketing Officer

20+ years experience in Marketing, Communication consulting and management In SECO since 2010

12+ years

Lorenzo Mazzini

CFO

Served as CFO in several public and private companies

Strong experience in IPO and M&A transactions

10+ years experience in business development, sales, innovation and internationalization for SECO Group

Gianluca Venere CIO

15+ years

multinational and

30+ years experience in running global business units in several Tech companies

CEO SECO Northern Europe Dirk Finstel

Former executive in Kontron, Adlink, Advantech

20+ years experience as executive in several Tech companies

Massimo Mauri CEO

Strong experience in IPO and M&A transactions

Dario Freddi

CEO SECO Mind

Previously founder and CEO

of Ispirata Srl

Strong data orchestration background in primary

worldwide leading

companies

Maurizio Caporali Chief Product Officer

Previously co-Founder and CEO of AidiLab

Joined SECO in 2018 as IoT BU Product Manager and R&D Project Manager

4 years

Business Manager of SECO

from September 2019

Financial advisor of SECO from September 2016 to

September 2019

Marco Parisi

Head of IR

30+ years experience in high-tech, IoT and AI

Former executive in Google, Cisco, Qualcomm, Motorola

Ajay Malik US

Alessandro Guido

Group Corporate and Legal Affairs Director

10+ years experience in legal advisory, with particular focus on Corporate law

In SECO since 2020

# years in SECO

SECO at a glance

SECO at a glance

Edge computing: integrated, plug-and-play solutions powered by SECO

SECO at a glance

Our customers' devices… …are transformed into smart objects…

…bringing intelligence into several industrial fields

SECO added value pillars

R&D and Design

Manufacturing

System integration

Miniaturized PC (board)

Native compatibility with:

Videoconferencing

systems Smart fitness machines Medical devices

Coffee & Vending machines

On-board infotainment systems

Parking machines

Digital billboards

Voting machines

Bowling scoring equipment

Industrial equipment

Passenger information systems

Vertical Applications of CLEA How customers can generate higher margins, recurring

revenues, better differentiation

Recipe Sales Trends Analysis App

CLEA Vending Machine Apps

Boiler Predictive Maintenance

Fault Detection & Machine Downtime Reduction AI Smart Refill Landing Page

CLEA Boiler App

CLEA UPS App

CLEA AI EV Charging Station Apps

	Appliances Client	:മ്മ: People
(CLEA	Appliance List Add Appliance
EV Charging_02 PR-80 0158477471	Details Status	Customer Analytics
	Status January 26 ,2022	Active >	10000 23-18-18-18	Current charg BMW i4 (11888)
	Current Power Energy Input	367V	Report	Day We
Online Siena Level2	Power Energy Output	125A	· Energy Input 50%	· Energy Output E
	Power Energy Supplied	46kW	09 Sat 21/0
(CLEA	Appliances Appliance List	을 Client 세: People Add Appliance
EV Charging_02 PR-60 0156477471	Details Status	Customer Analytics
	Status January 26 ,2022	Paused	Not working	Current charging status
Online ●	Issue Alert		A power surge has blocked the charging station. Assistance is required.
Siena Level2	Current Power Energy Input	OV	Report · Energy Input	W Day ● Energy Output
	Power Energy Output	OA	75%
	Power Energy Supplied	0kW	25%

AI Remote And Predictive Assistant CMS for age

Landing Page

on App
Account
27 ging status 68 %
ek Month Year inergy Supplied
& Account 27
0 % Request Assistance
Veek Month Year Energy Supplied
sistant
1 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Vertical Applications of CLEA How customers can generate higher margins, recurring

revenues, better differentiation

CLEA Refrigeration App

	Appliance List	Client Add Appliance	:음: People
Appliance Name RU 1234 5678 9000 PRO	Details	Analog Data	Commands Digital Data	Events	Set
	Regulation Parameters Probe Config Parameters	Parameter rSE	Regulation Set Point	Status	Setup
. Online	Visualization Defrost Config Parameters	SEt	Set Point	10.0	10.0 \$
· Normal Operation Design Tag	Evap. Fans and Condenser	LS	Minimum Set Point	3.0	3.0 *
	Alarms Digital Output	US HY	Maximum Set Point Differential Value	5.0 14.0	5.0 \$ 14.0 €
	Digital Input Analog Output	SHI	Humidity Set Point	40	40 +
	Counters	LSH	Minimum Humidity Set Point	100	100
	Serial Port Configuration User Interface	USH	Maximum Humidity Set Point	40	40 +
		HHA	Positive differential for humidity regulation	-10	-10 +
		ннв AC	Negative differential for humidity regulation Anti-short cycle delay	15 12	15 ÷ 12 4 b
		CHIt	Regulation type
		thu	Humidity regulation type		4 b

Remote Setup and Management

Smart Dumbell

CLEA Fitness App

Exercise Recognition & AI Personal Trainer

CLEA Healthcare App

AI Tooth Cavity Detection App

AI Driver concentration App

CLEA Automotive App

	Client Appliances ** People		Account
(CLEA Driving control BU 1234 5678 9000 PRO	Client List Add Client
	Car insurance Home insurance Life insurance		>>
O	Client profile	Events
	ID: 368279191AA	Dangerous driving events Last week	192
O Online Car Policy	61 Mulkern Rd Customer rating Address Last year 5/10 City Boston, MA +01 2345678910 Phone		Fatigue detected 4 Last week
Client A	12/02/1995 Birthday	Car accidents Last year	Driving with phone 00 Last week
	Insurance status AA123BB Plate	Day Week Month
	Insurance 090230239018AA 01/01/2021 - 01/01/2022 Period	· Fatigue detected Oriving with phone	Today, 18th Sep 2021
	591,9€ 462,66 Current price Suggested price at

BLE Audience Analysis

People Counter and Tracking

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