SECO: Q1 2024 Results and Business update presentation

May 14, 2024

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.

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Here today

Massimo Mauri Chief Executive Officer

Lorenzo Mazzini

Chief Financial Officer

Clarence Nahan

Head of Corp. Dev. & IR

Key takeaways from 2024 YTD

Clea expansion partly mitigating Edge slowdown

Q1 2024: Net sales at €47.2m, -14% vs. Q1 2023
Clea business at €7.3m in Q1 2024 (15% of sales), +14% vs. Q1 2023

Gross margin improvement

GPM incidence at 56.0% in Q1 2024, +845 bps vs. Q1 2023
Increased Clea contribution to Net sales
Improved components' market conditions

Adj. EBITDA at €10.4m in Q1 2024 (22.0% of sales), -13% vs. Q1 2023 % Adj. Net Income at €2.4m in Q1 2024 (5.1% of sales), -47% vs. Q1 2023

Destocking nearing completion, Edge computing to run again in H2 '24.
Positive trend in acquiring new design wins and customers
Focus on profitability and Free Cash Flow generation

Q1 2024 financial highlights

…% = % of Net sales

Edge computing business contraction due to different market conditions: customers destocking in Q1 2024 vs. high demand against shortage in Q1 2023
Clea revenue at €7.3m in Q1 2024 vs. €6.4m in Q1 2023 (+14%)
Margin increase driven by an improved sales mix, with the higher contribution of Clea, coupled with more favorable conditions in the components market
+2% growth in Q1 2024 vs. Q1 2023
Consistency of profitability, with stable incidence on sales thanks to Gross margin effect
-13% in Q1 2024 vs. Q1 2023
D&A: +€0.7m higher vs. Q1 2023
Financial expenses stable vs. Q1 2023
-47% in Q1 2024 vs. Q1 2023

Net sales €47.2m Q1 2024 Net sales €7.3m Q1 2024 Clea revenue 15% of Net sales Net sales breakdown (Q1 2024) (-52)% by Area (-97)% (-40)% (-4)% (+40)% (-67)% (+6)% (-35)% (-21)% (-5)% (+84%) (-52)% • Q1 2024 Net sales decreasing by 14% vs. Q1 2023 • Clea business at €7.3m revenue in Q1 2024 Legend (±…)% Change vs. Q1 2023 by End Market EMEA 87% USA 9% APAC 4% RoW <1% Industrial 28% Fitness 12% Medical 5% Vending/ Distribution 41% Transport 2% Defence and aerospace 2% PKE 4% Others 6%

Sales volume contraction distributed across geographical areas and verticals due to customers' final stages of destocking
Positive signals from Vending, Fitness and Defence & Aerospace

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

+14% vs. Q1 2023
Recurrent revenue portion consolidating

Adjusted EBITDA

€10.4m Q1 2024 Adj. EBITDA

Adjusted EBITDA bridge (€m)

22,0%		1	0,0	(1,7)	(0,7)	2	22,0%
12,0	(7,4)	7,9				0,3	10,4
Adj. EBITDA Q1 2023	Δ Net sales	Δ Consumption costs	Δ Operating income	Δ Costs of services and other operating costs	Δ Payroll costs	Δ Adjustments	Adj. EBITDA Q1 2024

1 Gross margin effect

Gross margin at 56.0% of sales (up by +2% vs. Q1 2023), mainly thanks to Clea business expansion and improved Edge computing sales mix, as well as a decrease in components' price following market stabilization
Negative operating leverage effect offsetting GPM positive contribution due to reduced sales volume

2 Adjustments

Adjusted Net financial position

Adjusted Net debt last 6 months volution (€m)

Business update

Unique end-to-end technological solutions

Trusted partner across industries

AI Services

IoT Software suite

In-house manufacturing

Continuously expanding our Ecosystem

Smart Energy Grid

As global energy demands rise, digital management solutions become crucial

Why digitalize the energy grid?

Reduced Energy Costs

Lower consumption through optimized grid management

Decreased Maintenance

Automated diagnostics extend system lifespans, reducing service needs

Scalability Savings

Modular designs prevent overinvestment in infrastructure

Powered by AI accelerator

Road to 2026

Already working to double production capacity

Inaugurated on January 12, 2024

Increased touch display production capacity
In-house System Integration
Next step: PCBA floor

New 22.000 sqm plant in Arezzo

System Integration and PCBA
Automated lines for electronic boards upscaling: similar technology as in Germany, facilitating production interchange

Optimization and relocation

Hamburg: additional production line
Wuppertal: larger facility for increased capacity and cutting-edge technology

Q&A

Annex

SECO in a snapshot

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

€210M 2023 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

~ 7-10%

of revenue invested in R&D every year

10 R&D centers 5 production plants

11 countries

Financials overview

Income Statement

€mln	Q1 2023	Q1 2024
Net Sales	54,6	47,2
Consumption Costs	(28,6)	(20,8)
Gross Margin	26,0	26,4
% on Net Sales	47,5%	56,0%
Other revenues	1,1	1,2
Personnel costs	(9,2)	(9,9)
Other Opex	(6,6)	(8,6)
Exchange gains/losses	0,0	0,3
EBITDA	11,4	9,5
% on Net Sales	20,8%	20,1%
EBITDA ADJ	12,0	10,4
% on Net Sales	22,0%	22,0%
Depreciation	(4,7)	(5,4)
EBIT	6,7	3,8
% on Net Sales	12,2%	8,0%
Financial expenses	(2,0)	(2,0)
Tax	(1,4)	(1,7)
Net Income	3,3	0,4
% on Net Sales	6,0%	0,9%

Balance Sheet

€mln	FY 2023	Q1 2024
Net Working Capital	91,4	97,3
Total Fixed Assets	310,9	311,9
Other non-current assets	3,9	4,0
Provisions and other non-current liabilities	(28,6)	(28,7)
Net Invested Capital	377,6	384,5
Net Financial Position	65,1	70,1
Net Financial Position ADJ.	52,0	57,3

Total Equity	312,5	314,3
Total Funds	377,6	384,5