Seco — Investor Presentation 2023

Sep 12, 2023

SECO: H1 2023 Results and Strategy update presentation

September 13, 2023

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

Key takeaways from 2023 YTD

Sustained organic growth path continuing

• H1 2023: Net sales at €111.9m, +19% organically vs. H1 2022
• CLEA business at €10.8m in H1 2023 (10% of sales), +12% vs. H1 2022
• Growth distributed across geographical areas and verticals

• Components' market back to normal, with margins progressively improving to pre-shortage levels
• CLEA's portion of recurring revenue increasing with many projects under deployment, reducing the weight of NRE
• GPM incidence at 49.6% in H1 2023, improving vs. H1 and FY 2022

Increased profitability

- Adj. EBITDA at €26.5m in H1 2023

• 23.7% of sales, +32% vs. H1 2022 % Adj. Net Income at €12.6m, +46% vs. H1 2022

• Despite the effects of a global economic slowdown, the organic growth trend, coupled with robust profitability, is expected to continue thanks to the visibility provided by order portfolio, design wins and ongoing negotiations

H1 2023 financial highlights

Q2 2023 vs. Q2 2022: focus on margins

• Edge computing business at +20% in H1 2023, largely thanks to a growth in the Industrial, Vending, Medical, PKE industries
• H1 2023 (10% of Net sales) • Proportion of CLEA recurring revenue increasing to 40% of total
• EMEA, APAC, USA markets all showing growth trends

H1 2022

Adjusted EBITDA

Note: percentages may not sum to 100% due to rounding; 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

Strategy update

Get ready for the unveiling of our new brand identity

September 27, 2023 – Launch of the new website

Our end-to-end approach

SECO technologies to fully enable AI at the edge

UX Redefining the Industrial world thanks to AI

13

Maintenance &

support

Industrial Automation

14

Real-Time quality inspection

Industrial and Manufacturing

Autonomous

robotics

Image processing & analysis

Medical

18

Automated checkout & real-time food recognition

A modular offering for a complete proposition

Combinable as building blocks: there's a solution for any customer need

Q&A

Annex

SECO in a snapshot

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

€201M 2022 FY revenue

Listed on Borsa Italiana's Euronext STAR Milan

1M devices manufactured every year

~ 900 people

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

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

10 R&D centers 5 production plants

8 countries

Financials overview

EMARKET SDIR
CERTIFIED

Income Statement
€mln	H1 2022	H1 2023
Net Sales	94,1	111,9
Consumption Costs	(50,1)	(56,4)
Gross Margin	44,0	55,5
% on Net Sales	46,8%	49,6%
Other revenues	2,2	2,1
Personnel costs	(16,8)	(19,8)
Other Opex	(11,1)	(12,7)
Exchange gains/losses	0,2	1,0
EBITDA	18,4	26,1
% on Net Sales	19,6%	23,4%
EBITDA ADJ	20,1	26,5
% on Net Sales	21,4%	23,7%
Depreciation	(6,5)	(9,5)
EBIT	11,8	15,6
% on Net Sales	12,5%	14,0%
Financial expenses	(2,2)	(2,7)
Tax	(3,0)	(3,8)
Net Income	6,8	10,1
% on Net Sales	7,2%	9,0%

€mln	FY 2022	H1 2023
Net Working Capital	80,5	94,6
Total Fixed Assets	311,1	309,2
Other non-current assets	3,9	5,2
Provisions and other non-current liabilities	(30,1)	(30,1)
Net Invested Capital	365,4	378,9
Net Financial Position	128,8	69,2
Net Financial Position ADJ.	118,8	60,2
Total Equity	236,6	309,7
Total Funds	365,4	378,9

Balance Sheet

Revenue and cost model

Note: all other costs (service, personnel, other) are mostly fixed costs

Adjusted Net Income

Business model

Thank you

www.seco.com