Seco — Investor Presentation 2024

Mar 18, 2024

SECO: FY 2023 Results and Business update presentation

M arch 21, 2024

Disclaimer

This document has been prepared by SECO S.p.A. ("SECO" or the "Company"), for information purposes only, exclusiv ely with the aim of assisting you to understand and assess the activ ities of SECO. The information contained in this presentation does not purport to be comprehensiv e and may not hav e been independently v erified 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 ev ents.

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 negativ e than, those expressed or implied by such forward-looking statements, due to any number of sev eral factors, many of which are beyond the ability of SECO to control or estimate precisely. Consequently, SECO and its management can giv e no assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual occurrence of the predicted dev elopments.

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

SECO does not undertake any obligation to publicly release any updates or rev isions to any forward-looking statements to reflect ev ents 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 hav e been adjusted to reflect extraordinary ev ents, non-recurring transactions and activ ities 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; howev er, 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, inv estors 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 inv itation 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 whatsoev er.

By reading this presentation, you agree to be bound by the terms set out.

Here today

Key takeaways from 2023

Resilient business model

• FY 2023: Net sales at €209.8m, +4% organically vs. FY 2022
• Clea business at €22.5m in FY 2023 (11% of sales), +22% vs. FY 2022
• Clea's portion of recurring revenue consolidating

• GPM incidence at 53.0% in FY 2023, +601 bps vs. FY 2022
• Increased SaaS contribution to Net sales
• Improved components' market conditions

• Adj. EBITDA at €50.6m in FY 2023 (24.1% of sales), +219 bps vs. FY 2022 % Adj. Net Income at €22.9m in FY 2023 (10.9% of sales), +72 bps vs. FY 2022

• Pursue organic growth and expand SaaS revenue (Clea and StudioX)
• Strengthen the integration of acquired companies to maximize synergies
• Focus on profitability and Free Cash Flow generation

Industry benchmark

In 2023, SECO outperformed the leading players in the Edge computing space

All figur es in €m (aver age 2023 exchange r at e from Por tale Tassi di cam bio - Banca d'It alia) Financials fr om cor por ate docum ents

FY 2023 financial highlights

…% = % of Net sales

• Edge computing business growing at 3% in FY 2023 vs. FY 2022
• Clea revenue at €22.5m in FY 2023 vs. €18.5m in FY 2022 (+22%)
• +18% growth in FY 2023 vs. FY 2022
• Margin increase driven by an improved sales mix, with the higher contribution of Clea, coupled with more favorable conditions in the components market
• +15% growth in FY 2023 vs. FY 2022

• More than proportional increase vs. revenue growth, thanks to Gross margin effect

• +12% growth in FY 2023 vs. FY 2022

• D&A: +€1.8m higher vs. FY 2022
• Financial expenses: +€0.4m higher vs. FY 2022, largely due to the increase in market interest rates

• FY 2023 Net sales growing organically by +4% vs. FY 2022
• Growth distributed across geographical areas and verticals
• Clea business at €22.5m revenue in FY 2023 (+22% vs. FY 2022), of which €6.3m in Q4 2023
• Clea recurring revenue above €10m

FY 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

Business update

Amidst the eco-digital revolution…

Key takeaways from Capgemini's "The Eco-Digital Era"

CO² decrease

By 2028, emissions reduction via digital tech to surpass emissions from its usage

Cost efficiency

Boosted by Edge computing and data analysis, AI-services integration with connected and smart devices

Industry 5.0: accelerating a Digital and Green transition

NRRP incentives promote energy-efficient machines, aligning with EU Commission objectives

(ST	7

AI-powered, data-driven processes minimize waste and maximizes energy savings, promoting sustainability

Next-gen industrial automation: sensors, machine learning & AI enable human-machine interactions and safe collaboration, enhancing efficiency

Edge AI: computational capacity where it matters

AI at the Edge vs. Cloud processing

Real-time data analysis with ~0 latency

Cost reduction by 5-6x without cloud renting

Enhanced privacy through local data processing

Low power consumption for energy efficiency

Collect and manage data at the edge with our IoT platform

Expanding our product linecard, leveraging on partnerships

AI at the Edge New products for computer vision in H2 '24 Powered by Already announced new Qualcomm SoM to develop and deploy a low-cost, low-power module to deliver real-time and local AI models IIoT design center partner Clea's module Astarte now available on Orchestrate IoT field data and handle device-to-cloud communication Marketplace AI-industrial server boosting demand for on-device, high-performance machine learning applications Scan the QR

A customizable, easy to use platform for

SECO AI Services

Redefining our reference market paradigms

An unparalleled positioning

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

Our production plants

Arezzo Hamburg Hangzhou Tregozzano Wuppertal Commercial Presence Direct Presence

Financials overview

Income Statement

€mln	FY 2022	FY 2023
Net Sales	200,9	209,8
Consumption Costs	(106,6)	(98,7)
Gross Margin	94,3	111,1
% on Net Sales	46,9%	53,0%
Other rev enues	4,4	2,2
Personnel costs	(34,9)	(40,7)
Other Opex	(23,5)	(27,6)
Exchange gains/losses	0,4	0,0
EBITDA	40,7	45,0
% on Net Sales	20,2%	21,5%
EBITDA ADJ	44,0	50,6
% on Net Sales	21,9%	24,1%
Depreciation	(18,7)	(20,4)
EBIT	21,6	24,6
% on Net Sales	10,8%	11,7%
Financial expenses	(5,0)	(5,3)
Tax	(2,5)	(4,6)
Net Income	14,6	14,6
% on Net Sales	7,3%	7,0%

Balance Sheet

€mln	FY 2022	FY 2023
Net Working Capital	80,5	91,4
Total Fixed Assets	311,1	310,9
Other non-current assets	3,9	3,9
Prov isions and other non-current liabilities	(30,1)	(28,6)
Net Invested Capital	365,4	377,6
Net Financial Position	128,8	65,1
Net Financial Position ADJ.	118,8	52,0
Total Equity	236,6	312,5
Total Funds	365,4	377,6

Revenue and cost model

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

Business model

Adjusted Net Income

Thank you

www.seco.com