Seco — Investor Presentation 2025

Mar 17, 2025

FY 2024 Results Presentation & Business Update

March 17th, 2025

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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Presenting today

Massimo Mauri Chief Executive Officer

Lorenzo Mazzini Chief Financial Officer

Clarence Nahan Head of Corp. Dev. & IR

FY 2024 results overview

Guidance exceeded in what remained a complex market backdrop

Key takeaways from the past 12 months

Continued resilience in a complex market

• FY24: Net sales at €183.5m, down 12.5% vs. FY23
• Solid and diversified client base in the Edge computing business
• Clea revenues at €21.3m in FY24 (11.6% of sales), up 0.9% vs. FY23

Best in class Gross Profit Margins • Adj. GPM incidence at 52.7% in FY24

• Stable YoY and improving QoQ thanks to unique business model, offering & Clea contribution
• 4Q24 GPM favored by a slightly better client / product mix

Focus on Opex optimization

• Adj. EBITDA at €28.2m in FY24 (15.4% of sales), down 44.2% vs. FY23
• Profitability improving in 4Q24, Adj. EBITDA at 17.6% vs. 10.5% in 3Q24
• Adj. Net Income at €1.4m in FY24

Significant Net Working Capital improvement

• Positive Cash generation in 4Q24 (€15.6m), thanks to effective NWC management
• Net Debt reduction at €41.3m, with a financial leverage fully under control (1.5x)

Benchmarking our performance with the rest of the sector

A proven business model with a high operating leverage

Source: FactSet, financial data refers to historical or consensus figures depending on availability

*Adlink data as of 9M 2024

Adj. Gross Profit Margin Adj. EBITDA Margin

FY 2024 financial performance in details

	FY 23	FY 24
Net sales	€209.8m	€183.5m	• Continuing destocking trend through the year by key customers led to decreased sales volumes • Clea revenue at €21.3m in FY24 vs. €22.5m in FY23 (-5%)
Adj. Gross margin	€111.1m 53.0%	€96.8m 52.7%	• FY24 vs. FY23 margin broadly in line, thanks to Edge product mix, coupled with more favorable conditions in the components market • Extraordinary write-down on Biorespira components (€4.1m), a product developed during the COVID-19 crisis, still not fully absorbed by the market
Adj. EBITDA	€50.6m 24.1%	€28.2m 15.4%	• Negative operating leverage amplified the impact of the Sales contraction due to our primarily fixed-costs structure • -44% in FY24 vs. FY23
Adj. Net Income	€22.9m 10.9%	€1.4m 0.7%	• D&A: +€9.6m vs. FY23 • Net financial expenses in reduction of €3.2m vs. FY23 • Aside from the adjustments made to EBITDA, Net income has been primarily adjusted for a €5.8m goodwill impairment of SECO Mind USA CGU, that results from the completion of SW development (now integrated into the Clea platform) by the US team, which has been terminated

Net sales - €183.5m

• €162.2m in FY24, (-13%) vs. FY23
• Sales volume contraction distributed across geographical areas and verticals due to customers' final stages of destocking
• Positive trajectory from Vending, PKE, Defense & Aerospace and Fitness

Edge computing business

• €21.3m in FY24, (-5%) vs. FY23
• +0.9% vs. FY23 in terms of incidence on Net sales

Adjusted EBITDA

1 Gross margin effect and operating costs

• Adj. Gross margin at 52.7% of sales (substantially stable vs. FY23), mainly thanks to Edge product mix, as well as to a decrease in components' price following market stabilization
• Adverse operating leverage effect, with the impact of reduced sales volume amplified by our P&L structure, primarily characterized by fixed-costs

Adjusted Net financial position

Adj. Net debt evolution (€m)

1 4Q24 vs. 3Q24

• Cash generation for €15.6m in 4Q24, mainly thanks to net working capital management actions

3 Leverage

• Solid financial position

Leverage

(Net Debt Adj. / Adj. EBITDA)

1.5x FY 2024

* ∆ Inventory adjusted for the extraordinary write-down on Biorespira components (€4.1m)

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

Business update

KPIs show that the inflection point has been reached

Supportive signs that OEMs are mostly done with their inventory adjustment

Key pillars driving the growth of our business in 2025

Capitalizing on years of technological leadership and continuous innovation

• Record-high new product pipeline both from range & innovation perspective
• Pick-up in project leads and new design wins with new global clients
• Clea platform getting increasing traction with historical OEM clients driven by data-analysis & value-added services
• Ecosystem of industry-leading Partners enriching Clea offering with specialized & vertically-focused services
• Favorable product & country mix, exposed to the fastest growing segments (e.g. Defense, Medical, Industrial…)

Optimal products & services offering

• Improving macro backdrop with interest rates normalization
• Strong signals for the start of a new cycle of corporate capex
• Acceleration in the adoption of edge computing systems fueled by increasing demand for HMI
• Increasing geopolitical visibility in key geographies for SECO (e.g. Germany)

SECO is ideally positioned to capture this rebound in demand

We expect revenue growth trajectory to be back on track starting from 1Q25 and quarterly revenues to regain their historical levels by summer

An eventful past few months

Building up further momentum in our business

How is gaining traction with clients and partners

• 10 years agreement
• Energy Industry
• + 200.000 devices
• Platform adoption with retrofitting capabilities for Hitachi
• Platform as foundation for Joint go-to-market Strategy

€1M Yearly recurring revenue

• Tobacco Industry
• + 200.000 devices
• Recurrent revenue from cashless payments & telemetry usage
• AI & IoT applications enabled by Clea Vend

€8M Yearly recurring revenue

• Long-term parternship
• Initially focused on the vending Industry
• E2E portfolio coverage
• Shared transaction fees
• New revenues streams and cost reduction for OEMs

Multi-million annual revenue stream opportunity correlated to client adoption

Embedded world 2025, Nuremberg

23° edition SECO present since 2012

1.200+ exhibitors from 38 countries

32.000+ visitors from 40+ countries

112 MQL* collected *Marketing Qualified Leads

Key partners featured during the event

Industrial AI at its best: SECO's COM Express with Snapdragon X

Collaboration with

selected as

European IIoT design center partner

Multi-OS Support Runs Windows & Linux for industrial applications

Extreme Performance

Snapdragon X Elite delivers top-tier CPU, GPU & 45 TOPs NPU for AI at the edge

Versatile & Scalable Available across Snapdragon X, X Plus & X Elite SKUs

Efficiency & AI Acceleration

Low-power design, high-efficiency AI processing

Edge AI for Robotics: SECO COM Express with Metis AI Acceleration

Collaboration with

AI-Powered Vision

High-performance Axelera Metis AI chip for real-time object detection & tracking

Optimized for Robotics

COM Express module ensures seamless integration with autonomous warehouse systems

High Efficiency & Speed Accelerates logistics with advanced AI computer vision

Edge AI Processing

Low latency inference at the edge for real-time decisions

SECO Pi Vision 10.1 CM5: the Smart HMI for Industrial Innovation

Collaboration with

Powered by Raspberry Pi CM5

A cost-effective yet industrial-grade HMI designed for automation, retail, logistics, and transportation

Integrated IoT & AI with Clea

Enables real-time data insights, predictive analytics, and seamless remote management

Smart, Scalable & Ready for Deployment

Ideal for OEMs and startups, reducing time-to-market from prototyping to mass production

Enabling Digital Transformation

Drives efficiency, automation, and cost savings across industries with intelligent edge computing

Backed by a record-high Edge product pipeline

AI Studio

AI workflow automation for Industrial IoT

SECO Application Hub

The AI Marketplace for Industrial IoT

Coming in 2H25

Modular Vision: Game-changer AI-ready HMIs

Unique E2E offering

HMI + Clea IoT platform + AI: complete solutions to maximize our tech investments

Interest from Silicon vendors

Seen as the ideal go-to AI evaluation kit by our chipmaker partners

AI-based with an intuitive UX, to accelerate AI adoption in industrial application

Modular & scalable platform, to deliver custom HMI in just 3 months

Clear monetization strategy

Fully integrated IoT offering, from edge computing to software & services suite, allowing multiple recurring revenue opportunities

Recent design win improving sales mix across verticals & regions

New projects with new clients demonstrating the competitiveness of our product offering

Sector		Country		Solution	Business Size
	Global tech leader in Energy metering		Switzerland	• Smart device for High voltage sub-stations Modular, boxed solution with IoT connectivity •	€5M+
	South American leader in smart voting		Argentina	Complete custom project for electronic voting machines • • Complex system integration (fingerprint scanner, printer…)	€5M+
	Western world's largest machine tool builder		USA	• 18.5" touch panel assembly with integrated brackets • Enhanced user interface in CNC machines	€3-5M
	Leader in Passenger Information Systems		Germany	Displays (inside/outside) & audio systems for new suburban • trains in Munich Compliance with transportation certifications •	€1-2M
	Global group in Aerospace & Defense		Italy	Supply of HMI and modules to be integrated by customer • • Front & rear cabin operator panels into Airbus civil aircraft	€1-2M

Long-lasting relationships with Top-tier customers

Sustainable growth trajectory driven by strong client base

20 years+ relationship with Top3

~3% Churn rate

Top10 concentration <70% (2018) to ~45% (2024)

Why invest in SECO?

Top 5 player globally in one of the fastest growing end-market in technology Profitable business model focused on high margin custom solutions End-to-end technological partner with unrivalled R&D excellence Fully integrated IoT offering, from edge computing to software & services stack Highly diversified client base, consistently growing through new project wins Experienced management team with a clear roadmap to deliver long term growth Strong balance sheet allowing for pro-active M&A strategy Uniquely positioned product range to fully benefit from Edge AI tailwind

Q&A

Thank you

www.seco.com