Tinexta — Investor Presentation 2019

Jun 19, 2019

Mid-Cap Conference Paris 19 Juin 2019

Introduction to Tinexta

Disclaimer

• This document was prepared by Tinexta Spa (the "Company") for the sole purpose of presenting the performance and the activities of the Company. The information provided with this document does not contain nor constitute an offer of securities for sale, or the solicitation of an offer to purchase securities, in the United States, in Australia, in Canada or in Japan or in any other jurisdictions where this offer or solicitation would require the approval of local authorities or be otherwise unlawful (the Other countries). This document or any parts thereof, or its distribution, may not constitute the basis for, or be invoked in association with, any agreements or decisions about investments related thereto.
• The shares of Tinexta Spa (the "shares"), as referred to in this document, have not been registered and will not be registered pursuant to the USA Securities Act of 1933, as amended (the Securities Act) or pursuant to the corresponding regulations in force in the other countries, and they may not be offered or sold in the United States or to US citizens unless these securities are registered in compliance with the Securities Act, or if an exemption from the requirements of Registration by the Securities Act is set forth.
• The content of this document is of an informative nature and must not be interpreted as investment advice. This document does not constitute a prospectus, an offering circular, an offering memorandum or an offering for the purchase of shares and must not be considered as a recommendation to underwrite or purchase Tinexta shares. This presentation or any other documentation or information (or part of it) provided, shall not be considered as an offer or an invitation by or on behalf of the Company.
• The information herein does not intend to be comprehensive or to include all the information that a potential or existing investor may wish to have. In all cases, the interested parties must carry out their own investigations and analyses of the Company which may include an analysis of the data of this document, but they must also include an analysis of other documents, including the financial statements for the period.
• The statements herein have not been verified by any entity or independent auditor. No statement or guarantee, expressed or implicit, is made with respect to, and one must not rely on, the accuracy, completeness, correctness or reliability of the information contained in this document. Neither the Company nor any of its representatives shall bear any responsibility (for negligence or other reasons) that may arise in any way in relation with such information or in relation with any loss resulting from its use or deriving in any way in connection with this presentation.
• The information contained in this document, unless otherwise specified, is updated as at the date of this document only. Unless otherwise specified in this document, this information is based on the Company's financial reports, management reports and estimates. Please refer to the year-end financial statements or to the half-year reports, which are audited by an external auditor and published by the Company, prepared in Italian, and for transparency, translated also into English. The Italian version of these materials is considered, according to Italian Law, as the official and legal version of said reports.
• The information contained in this presentation is subject to changes without obligation of a prior notice, and past performance is not indicative of future results. The Company may modify, edit or in other ways amend the content of this document, without any obligation to render notification about any revisions or changes. This document may not be copied or disseminated in any way.
• The distribution of this document and any related presentation in jurisdictions other than Italy, may be limited by the Law and any person in possession of this document or any other related presentation must be properly informed and comply with the set forth restrictions. Any non-compliance with such restrictions may constitute a breach of Law in effect in these other jurisdictions.
• By accepting this presentation or accessing these materials, the reader accepts to be bound by the above mentioned limitations.
• This presentation includes some forecast statements, projections, objectives and estimates that reflect the current opinions of the Company's Management in relation to the changes occurring in the markets where the Company operates, as well as to future developments. Forecast statements, projections, objectives, estimates and outlooks are generally identifiable through the use of verbs/nouns such as "could", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", " intend", and "project "," objective" or "purpose" or the opposite of all these verbs/nouns or variations thereof or any comparable terminology. These statements include, but are not limited to, all statements other than those regarding historical events, including, inter alia, those concerning transaction results, financial position, strategy, plans, objectives, purposes and objectives of the Company and future developments in the markets in which the Company operates or it is trying to operate.
• Because of these uncertainties and risks, the readers are advised not to rely excessively on these statements as a prediction of the actual results. The ability of the Group to achieve its objectives or expected results depends on many factors outside of Management's control. The actual results may differ materially from (or be more negative than) those projected or implicit in the declarations contained herein. Therefore, any prospective information contained in this document involves risks and uncertainties, which may significantly affect the expected results, and is based on some key assumptions. All statements included in this document are based on information available to the Company as at the date of this document. The Company does not incur an obligation to provide a public update or revision of any statements, both as a result of new information, future events or other circumstances, unless required by the applicable laws. All the following statements, written, verbal or oral made by the Company or by parties acting on its behalf are expressly qualified in their entirety by these cautionary statements. Neither Tinexta S.p.A. nor any Tinexta Group company nor its respective representatives, directors or employees accept any responsibility in relation to this presentation or its contents in relation to any loss deriving from its use or from the reliance made on it.

Agenda

I.	Introduction to TINEXTA	3
II.	Our Businesses	10
III.	Strategic Plan & 1st Quarter 2019 Highlights	20

Introduction to Tinexta

Tinexta, founded in 2009, is the parent company of a highly profitable group that has grown organically and through M&A. Currently, Tinexta manages 18 operating companies that have leading positions in three businesses:

• Digital Trust
• Credit Information and Management
• Innovation and Marketing Services

We operate principally in Italy and are expanding rapidly in Europe. Our clientele is a mix of corporate (18,000 companies and banks) and retail (over 2.4 million accounts).

2009	Tecnoinvestimenti founded	Tecno Holding contributes its participation of 99.9% in InfoCert
2012	Start of reorganizational process
2013	New Strategic Plan: Tecnoinvestimenti to actively manage holdings.
2014	Reorganization completed: non-core holdings sold. AuCap €20m.	Shares listed on AIM/Milan Stock Exchange
2015	Expansion in existing sectors Add-on M&A deals
2016	Larger M&A	Share Capital increase of c.€50m Listing moved to STAR from AIM
2017	Group Consolidation, Further Acquisitions
2018	• Reorganization • International expansion	Tecnoinvestimenti becomes Tinexta

Tinexta: a private, listed company with a free float of 43.9%

Rapid Growth 2014 – 2018

Mid-Cap Conference, Paris 19 June 2019

Increasing Profitability, Diversifying Revenues

In the course of the last three years, the Group increased its presence in higher margin sectors

I. Introduction to Tinexta

8

External Growth Using Disciplined M&A Approach

M&A is a part of Tinexta's DNA

I. Introduction to Tinexta

Agenda

I.	Introduction to TINEXTA	3
II.	Our Businesses	10
III.	Strategic Plan & 1st Quarter 2019 Highlights	20

Tinexta Group today

The Group operates in Digital Trust, Credit Information & Management and Innovation & Marketing Services, all with leading or solid market positions.

Based on First Quarter 2019 Results

¹Net of non-recurring items. ²EBITDA is the sum of the EBITDA generated by the three Business Units and excludes the impact of Tinexta S.p.A., the parent company.

Digital Trust: Security+Compliance+Trust

Value Proposition:

Enable companies to innovate/digitize operational processes with customers, leveraging our portfolio of trust-based business solutions and services.

Our value added:

• We assume the legal liability of validating any business process;
• We reinvent digital workflows for our customers, designing, developing and delivering end-toend solutions.

Products:

• Off-the Shelf Products: the foundation
  • Products: registered/certified email, electronic invoicing, SSL certificates
  • Clients: mass market, individuals, lawyers, accountants, companies, governments
  • Channels: web distribution, professional association, direct marketing
• Enterprise Solutions: the future
  • Products: TOP, Go-Sign, Geo-localization
  • Clients: Banks, utility companies, finance companies, telcos, governments
  • Channels: marketing

eIDAS: electronic Identification And trust Services Regulation: adopted in 2014,

effective in July 2016.

Created a consistent legal framework and a single, unified market in Europe. Provided a predictable regulatory environment to develop and expand the use of electronic signatures and transactions in the EU. The regulation has standardized market access, allowed for interoperability and opened the European market.

• generator
• Moderate growth
• Cutting edge technological solutions • R&D • High growth
• eIDAS

International Expansion Strategy

5 Point Strategy

• 1. Unified legal base: EIDAS
• 2. Concentration process
• 3. Leverage our value proposition
• 4. Increase geographic footprint
• 5. EU coverage thru local champions

Trusted Onboarding Platform (TOP)

Patented solution for customer identification & digital contract signature

• At 31/3/19: 76 customers, 12 outside Italy
• Banks, Finance Cos, utilities
• Business model:
  • Initial: consultancy period to set up platform (w/system integrator)
  • Ongoing: maintenance fee plus a fee for each new client

Credit Information & Management

Innolva:

Third largest Business information services provider in Italy, supporting credit decision-making, using data/information from Chamber of Commerce owned data bank, real estate data bank (cadastral registry) and others. Credit recovery/collection services.

In 2018 Innolva acquired Comas & Webber, which distribute business information via the web, as well as Promozioni Servizi, which is a leader in aiding companies to obtain guarantees from Mediocredito Centrale/Italian government to lower long-term funding costs.

• Innolva's customer base: ~10,000 small/medium-sized banks, SMEs, large corporates, professionals (accountants, lawyers)

Credit Information & Management

RE Valuta

RE Valuta is the leader in Real estate appraisal in Italy, primarily focused on the retail housing market for banks, as well as commercial and office properties.

Real estate consultancy and due diligence services are also offered.

• RE Valuta's customers: Italy's largest banks
• Business model: multi-year framework contracts

Innovation & Marketing Services

Business: two types of consulting. Warrant Hub is a leader in consultancy to obtain Italian Government and EU subsidized financing for R&D and industrial innovation. It offers in addition strategic consulting to industrialize the innovation process, improve energy efficiency, how to generate patents and undertake production improvements.

Co.Mark furnishes Temporary Export Management consultancy to SMEs to assist their commercial expansion.

• Customer base: 5-6,000 small/medium enterprises, majority in the industrial heartland of Italy (Turin-Venice-Bologna triangle)
• Warrant Hub utilizes specialized 100+ consultants for submitting applications for obtaining tax credits
• Co.Mark utilizes its network of 100+ highly qualified Temporary Export Specialists ®, each speaks at least 2 foreign languages

Channels: salesforce, direct marketing, dedicated companies Chamber of Commerce

Co.Mark TES Sl

Innovation services: Warrant Hub

1. Automatic subsidized finance consultancy: assistance to companies to obtain contributions which are paid in the form of tax credits. Current legislation to expire at end of 2020 w/probability of extension to be considered by the Italian Government

2. Finance from regional, national and European programs: supporting businesses in participating in regional, national and European tenders, finance is available for both drafting and reporting.

3. Patent Box: support for companies in assessing access to the instrument, preparing documentation and approval process with the Revenue Agency for the determination of income from the use of works of art, industrial patents, drawings, processes, formulas, etc. Structural incentive which has no need of being renewed by legislation

4. Innovation & Corporate Consulting: Warrant Innovation Lab aids companies to industrialize the innovation and commercialization process. WH aids companies to obtain better financing terms thru management of financial parameters and obtaining guarantees from the Central Guarantee Fund.

Temporary Export Management: Co.Mark

• With offices throughout the country, Co.Mark's business is divided into three specialized areas in the field of export and marketing:
  • services for SMEs
  • advice and training for large corporations
  • partnerships with local business & trade associations and national confederations
• Circa 100 temporary export specialists work for c. 650 active clients
• Specialization for tech innovation and business networking
• 22 offices in Italy
• Co.Mark TES in Spain operates in Barcelona & Madrid
• Government voucher programs to promote exports
  • Sept 2017: €26 m
  • Prior 2015 program: 34% Co.Mark clients participated, accounting for 23% of total program
• New CEO selected in February 2019

Agenda

III.	Strategic Plan & 1st Quarter 2019 Highlights	20
II.	Our Businesses	10
I.	Introduction to TINEXTA	3

The Group: Strategic Guidelines

The full control of the Group creates the prerequisites for realizing a reorganization, simplifying internal processes, and pursuing development objectives, including via extension of the offer to clients and growth in new European markets.

Internationalization	Digital Trust: European market leadership via M&A beyond the Alps Innovation & Marketing Services: reinforcement of Spanish positioning and presence in the BENELUX area
New services/ products	Digital transformation support Digital marketing support Cyber security support
New organizational model	Reinforcement of central staff functions Centralized coordination of the commercial functions Corporate simplification

The Group: 2019-2021 Plan

In the course of the Plan:

• the main growth driver will be Digital Trust
• international revenues are expected to grow faster than Italian revenues

This plan was elaborated on pre-IFRS 16 introduction and assumes no M&A.

Mid-Cap Conference, Paris 19 June 2019

Tinexta: 2019 Q1 Highlights¹

Summary Income Statement (€ m)	Q1 2019	Q1 2018	∆	IFRS 16 Impact	∆%
Revenues	59.7	51.6	8.1	-	15.8%
EBITDA	14.4	10.2	4.2	0.82	41.4%
EBIT	9.3	6.4	3.0	0.02	46.5%
Net Income	6.0	3.9	2.0	-0.05	51.9%
Free Cash Flow	17.9	10.7	7.2	0.64	67.8%

¹The comparative figures for the first quarter of 2018 have been restated in relation to the completion in the last quarter of 2018 of the activities for identifying the fair values of the assets and liabilities of Warrant Hub S.p.A. and its subsidiaries, consolidated on a line-by-line basis starting December 1, 2017.

From 1 January 2019 the Group has adopted accounting standard IFRS 16 "Leasing" which has led to changes in accounting policies and in some cases adjustments to the amounts recognized in the Financial Statements. The comparative figures for 2018 have not been restated while the figures for the period in question are affected by the application of the aforementioned principle. In order to ensure effective comparability with the economic, equity and financial results of 2018, the effects on the comparative analyses deriving from the application of IFRS 16 adopted from 1 January 2019 are evidenced in the penultimate column.

Tinexta: Key take-aways

• 1. Solid Business: organic growth w/disciplined M&A:
  2. ‒ On track to become Pan-European Digital Trust Leader
  3. ‒ Italian leader in specialized consultancy businesses
• 1. Tinexta performance: virtuous growth path
  2. ‒ 2014-2018: Revenue +33% CAGR, EBITDA +56.3% CAGR
  3. ‒ Solid Q1 2019 Results: positive across the board
  4. ‒ Full year 2019 guidance confirmed
• 1. Conservative financial management:
  2. ‒ NFP <2X projected '19 EBITDA
  3. ‒ Free Cash Flow: strong growth in 2018: +18.1%, in Q1 2019: +67.8%

Appendix

Digital Trust: Global Cybersecurity Expenditures

Rising cyberattacks leading to increasing expenditures in cybersecurity

An increase of digitization and the lack of password reliability…

…and an ongoing necessary evolution of the regulatory framework in Europe and potentially in the US to better protect e-identities…

…resulting in a strong increase in global cybersecurity expenditures

Source: IDC, Market Research Future, EY-Parthenon Analysis

Source: Gartner – IAM Event 2019 – Keynote the future of identity and access

Mid-Cap Conference, Paris 19 June 2019

Digital Trust: Identity Protection

• qTSP: is the segment of "direct" competitors in Italy and the EU that offer qualified trust services, at local or even supranational level
• Identification/KYC: vertical solutions for the remote identification of individuals.
• Authentication: the process of authenticating the actor in a transaction, procedure or contract within a cybersecurity/internet/digital context
• Digital Transaction Mgmt: market solutions for digitization of transactions.

Digital Trust: Identity Protection

PKI is the most effective strong authentication technology, benefits from strong growth perspectives and addresses a wide range of needs

A Public Key Infrastructure (PKI) is a back-end cybersecurity measure defined as a set of hardware, software, policies, processes and procedures required to create, manage, distribute, use, store and revoke digital certificates and publickey encryption

• ➢ PKI ensures authentication, confidentiality, integrity and non-repudiation
• ➢ PKI efficiently addresses growing needs in identity protection for governments, corporates (large and SMEs) and IoT
• ➢ PKI can be used for a wide range of applications: e-signature, web pages, e-mails, files encryption, WiFi / VPN, online payments, etc Sources: IDC, Market Research Future, EY-Parthenon analysis

Digital Trust: Enterprise Solutions

Digital Transaction Solution to provide Remote Electronic Signature Capabilities

• Digitization of operational procedures needing legal signoff
• eIDAS is a fundamental factor:
• 62 Clients (o/w 5 non-Italian)
• 6,700 enabled users
• Business model:
  • Initial: consultancy to set up platform set with a system integrator
  • Ongoing: maintenance fee + fee for @new document generated/archived

Digital Trust: Investment in Proprietary R&D Driving Revenues

SecureDrive Encrypted cloud storage

WebID Remote video identification to issue a qualified certificate for electronic signature

GeoSign Geolocated Qualified Electronic Signature

SelfID Remote asynchronous identification to issue a certificate for electronic signature

Paperless reception Centralized system for access control

Voice Signature Advanced Electronic Signature based on voice recognition

STP

Platform independent authentication mgr

QR code signature

Digital transaction manager based on bidimensional codes

CertyChat Certified Instant Messaging system

Let Me In Access control system based on NFC devices

Cer Ring Digital remote door bell

Power of attorney book

Integrated system for the validation and management of the power of attorney

SecureStream

Video-recording encryption system

Circa 5% of Digital Trust Revenues are invested in R&D annually Driving Enterprise solution revenues since 2015

Digital Trust: Current Enterprise Solution Customers

Our solutions are sold in 17 countries We serve more than 2,000 Enterprise Customers

Mid-Cap Conference, Paris 19 June 2019