Seco — Investor Presentation 2023

Mar 21, 2023

SECONEY 2022 Results and Business update presentation

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

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• GPM incidence stable in FY 2022 vs. FY 2021, at 47%, despite negative effect of PPV

• Critical components stocking: €22m invested during the year, a strategic decision to secure customer deliveries • €7m cash generation in Q2-Q4 2022; +0.4x improvement in Adj. Net Debt / Adj. EBITDA ratio vs. FY 2021

• CLEA business at €18.5m in FY 2022 (9% of sales), +317% vs. FY 2021

• FY 2022: Net sales at €201m, +79% vs. FY 2021 (+43% organic growth) • Adj. EBITDA at €44.0m (22% of sales), +74% vs. FY 2021 • Growth distributed across geographical areas and verticals

• 2023-25 hardware weighted pipeline at >€500m as of February 2023

Key takeaways from 2022

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• Components' market is gradually back to normal: average lead times currently at around

FY 2022 financial highlights

• Edge computing business growing at 69% in FY 2022 vs. FY 2021

• Price increase actions adopted in previous quarters and positive impact from CLEA revenue have helped

• Financial expenses: +€3.9M higher vs. FY 2021, largely due to G&F acquisition financing

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• FY 2022 Net sales growing by +79% vs. FY 2021 (+43% organic, +37% on a likefor-like basis)
• Edge computing business at +69% in FY 2022, largely thanks to a growth in the Industrial, Fitness, Medical, Vending industries

Net sales breakdown (FY 2022)

Net sales

• CLEA business continuting its expansion trend, hitting €18.5m revenue in FY 2022 (+317% vs. FY 2021)
  • EMEA, APAC, USA markets all showing growth trends

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Adjusted EBITDA

Note: all numbers in €m are rounded to the closest first decimal place, so there may be deltas for 7 up to ±€0.1m when variation figures are displayed

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Adjusted Net financial position

Adjusted Net debt bridge (€m)

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Endless ways to the future

Business update

• Axelera and Google Cloud partnerships further enriching SECO ecosystem
• CLEA as an OS: leverage on partners and system integrators to seize pure platform business opportunities

→ Reduced customization efforts, higher platform scalability

• CLEA App Store to be launched in April 2023

Growth path set to continue Business model evolution

• +30% Net sales growth expected in Q1 2023 vs. Q1 2022
• Edge computing solutions facing robust demand with several design wins already secured (mass production expected to start in 2023-25)
• CLEA expected to increase contribution on SECO Net sales, with recurring portion gaining share on total CLEA revenue

Business update

Bringing intelligence into our customers' devices

Voting machines

On-board passenger information systems

11 11

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Digital billboards

Bowling scoring equipment

…and many more…

Industrial equipment

Axelera partnership

Low latency enabling real-time edge AI

Cost effectiveness, reduced consumption vs. architectures based on cloud processing

CLEA enabling deployment of AI-based models from the cloud to the edge

Google Cloud partnership

CLEA + Google cloud services: standardized framework for developers to accelerate time-tomarket of their products and services based on IoT-AI

Native integration between CLEA and Google Cloud AI services following

Business continuity ensured to Google Cloud IoT Core users following its dismissal announcement

Enabling end users to launch value added services by integrating information from all their data sources

Enhancing digital transformation in the Industrial world

Co-operation between SECO and Google Cloud's ecosystem of partners

SECO booth at Embedded World 2023

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How CLEA business model is transforming

CLEA is an Open Ecosystem that allows customers to build and sell their own apps

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From the CLEA SDKs… ...to value added apps

Enhancing platform's scalability and recurring revenue generation

CLEA App Store

Enabling the servitization of our customers' business models

Targeted advertising services

The power of AI

at your fingertips

10/07/2022			=
0.8%	0.5%	0.2%

Customers to develop their own AI models to launch new value-added services

Customers can monetize their apps and start offering them as digital services to their own customers

CLEA as the technical infrastructure to build customers' private App Store

Total Order backlog (€m) 2023-25 weighted pipeline

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February '23 backlog and pipeline

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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

Why invest in SECO?

Innovatively evolving our solutions to create a global leader in a new market

Leveraging experience by vertical to be the definers of the next end-to-end sector standards

Edge Computing

Enabling customers' business model servitization

Leading to strong value creation

Supported by a highly committed management team

22% 2018-22 Organic Revenue CAGR

52% 2018-22 Adj. EBITDA CAGR

Endless ways to the future

Endless ways to the future

SECO ANNEX

Commercial Presence Direct Presence

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

SECO at a glance

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Financials overview

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Income Statement

€mln	FY 2021	FY 2022
Net Sales	112,3	200,9
Consumption Costs	(59,2)	(106,6)
Gross Margin	53,1	94,3
% on Net Sales	47,3%	46,9%
Other revenues	4,0	4,4
Personnel costs	(23,5)	(34,9)
Other Opex	(15,0)	(23,5)
Exchange gains/losses	(0,6)	0,4
EBITDA	18,1	40,7
% on Net Sales	16,1%	20,2%
EBITDA ADJ	25,3	44,0
% on Net Sales	22,5%	21,9%
Depreciation	(9,2)	(18,7)
EBIT	9,5	21,6
% on Net Sales	8,5%	10,8%
Financial expenses	(1,3)	(5,0)
Tax	(1,1)	(2,5)
Net Income	6,5	14,6
% on Net Sales	5,8%	7,3%

Balance Sheet
€mln	FY 2021	FY 2022
Net Working Capital	52,5	80,5
Total Fixed Assets	233,3	311,1
Other non-current assets	3,1	3,9
Provisions and other non-current liabilities	(16,4)	(30,1)
Net Invested Capital	272,5	365,4
Net Financial Position	109,5	128,8
Net Financial Position ADJ.	97,5	118,8
Total Equity	163,0	236,6
Total Funds	272,5	365,4

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Revenue and cost model

Adjusted Net income (€m)

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Adjusted Net Income

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Business model

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The value of an end-to-end offering

All customers need to get the most out of their data

As Edge AI is taking over, processing data where it matters means saving energy, bandwidth and storage, while getting the most out of customers' physical infrastructure

CLEA can orchestrate Data Science workloads and apps in the cloud or at the edge

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 UPS App

UPS Management

CLEA AI EV Charging Station Apps

Plate Recognition And Fleet Management Digital Signage

Landing Page

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Vertical Applications of CLEA

How customers can generate higher margins, recurring revenues, better differentiation

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 RU 1234 5878 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	Address 61 Mulkern Rd Customer rating Last year 5/10 City Boston, MA +01 2345678910 Phone	Last week	Fatigue detected 4
Client A	12/02/1995 Birthday	Car accidents Last year Last week	Driving with phone 60
	Insurance status AA123BB Plate	Day Week	Month Year
	Insurance 090230239018AA 01/01/2021 - 01/01/2022 Period	Driving with phone · Fatigue detected	Today, 18th Sep 2021
	591,9€ 462,66 Current price Suggested price at

BLE Audience Analysis

Remote Setup and Management

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Vertical Applications of CLEA

CLEA for Agriculture

Harvest Forecasting

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

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

5+ years

Angelo Peloni COO

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

17+ years

Simona Agostinelli

Chief Marketing Officer

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

12+ years

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

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

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

Previously founder and CEO of Ispirata Srl

Dario Freddi CEO SECO Mind

Strong data orchestration background in primary worldwide leading companies

Previously co-Founder and CEO of AidiLab

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

Maurizio Caporali Chief Product Officer Marco Parisi Head of IR

Business Manager of SECO

from September 2019

Financial advisor of SECO from September 2016 to

September 2019

Motorola

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

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A highly committed management team

Thank you