Wiit — Investor Presentation 2022

Nov 10, 2022

WIIT takes your business above the clouds

9M 2022 Results Presentation

9M 2022 Results Presentation November 10, 2022

Disclaimer

This document has been prepared by WIIT S.p.A. (the "Company") for information and discussion purposes only, it contains only summary information and, therefore, it is preliminary in nature. Furthermore it has been drafted without claiming to be exhaustive.

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9M 2022 RESULTS HIGHLIGHTS

Persistent growth in sales (+61.1%), due to organic growth, contracts extension, acquisition of new customers and to the contribution of German and Italian companies acquired during 2021and 2022

• Consolidated Adjusted Revenue of 85.3 M€ (53.0 M€ in 9M 2021) +61.1% compared to 9M 2021 thanks to the organic growth, contracts extension, the acquisition of new customers and Gecko, Boreus, Lansol and ERPtech contribution;
• Consolidated Adjusted EBITDA of 29.8 M€ (21.8 M€ in 9M 2021) +37.0% compared to 9M 2021, thanks to the concentration in Cloud services, the level of optimisation achieved in the organisation of processes and operational services, cost synergies and the continuous improvement of the margin of the acquired companies which partially mitigated the inflationary effect on costs and energy growth, especially in Germany; margin on revenues at 35.0% .
• Consolidated Adjusted EBIT of 15.4 M€ (11.8 M€ in 9M 2021) +30.2% compared to 9M 2021 with a margin on revenue at 18.0% and a significant increase of amortization of 4.2 M€, referred to the same period of the previous year (14.2 M€ in 9M 2022 compared to 10.0€ in 9M 2021);
• Adjusted Net profit of 9.6 M€ , +29.5% compared to 9M 2021 (7.4 M€ in 9M 2021);
• Adjusted Net Financial Position (including IFRS 16 impact for approx. 10.4 M€): debt of 180 M€ (140.6 M€ at December 31, 2021); the amount includes, in particular: ERPTech acquisition for 4 M€, Lansol acquisition for 18.1 M€, new investments in Capex for 21 M€, payment of dividends for 8.4 M€ and Treasury Shares Buy Back of 7.6 M€. The value doesn't include the valuation of treasury shares in portfolio quantified in approximately 22.2 M€ at market value as at September 30, 2022.
• The results as at 30 September 2022 take into account the merger by incorporation of Adelante S.r.l., Matika S.p.A. and Etaeria S.p.A. in WIIT, which had legal effect from 1 August 2022 and accounting and tax effects from 1 January 2022.
• During 9M 2022 the energy cost is 6.3 M€ (3.1 M€ in 9M 2021) mostly referred to the German companies;

Revenues +61.1% 85.3 M€ vs 53.0 M€ in 9M 2021

+37.0% Ebitda Adjusted 29.8 M€ vs 21.8 M€ in 9M 2021 EBITDA margin Adj. of 35.0%

+30.2% Ebit Adjusted

15.4 M€ vs 11.8 M€ in 9M 2021 Ebit margin Adj. of 18.0%

+29.5% Net Profit Adjusted 9.6 M€ vs 7.4 M€ in 9M 2021

180 M€ Net debt (including IFRS16) 140.6 M€ at December 31, 2021

Financial Highlights

vs 9M 2022 9M 2021

79.0% Wiit 77.0% Group Recurring

21.0% Wiit 23.0% Group One Off

Revenues breakdown 9M 2022

+61.1% Revenues Adjusted 85.3 M€ vs 53 M€ in 9M 2021

Financial

Highlights

vs

9M 2021

9M 2022

• Constantly growing market;
• Increase driven by organic growth, characterised by the development of higher value-added services, increasing cross-selling to customers of acquired companies and the entry of new customers;
• Orgnic growth:
• Italy +2% (double-digit progress of WIIT stand-alone by +17% and rationalisation of the turnover of the other Italian companies with focus on higher value-added revenues)
• Germany +20% (MyLoc and Mivitec merge)
• The contribution of the companies acquired in 2021 and 2022 was Euro 23.5 million related to Gecko and Boreus and their subsidiaries, Euro 0.7 million related to Lansol and Euro 4 million related to ERPTech.

(*) ERPTech is a company whose acquisition was completed on March 31, 2022. Lansol is a company whose acquistion was completed on September 9, 2022.

+37.0% Ebitda Adjusted* 29.8 M€ vs 21.8 M€ in 9M 2021 EBITDA margin Adj. of 35%

• Concentration on Cloud services, optimized processes and operating services organization;
• Adjusted Operating Costs of approximately Euro 33.6 million with an increase of Euro 13.8 million compared to 9M 2021. This change is attributable to the increase in electricity costs, particularly in Germany, more than doubled compared to 9M2021 to the marketing and communication costs to support growth, as well as to the integration of the companies acquired in the latter part of 2021 and early 2022;
• Personnel costs of approximately Euro 21.1 million with an increase of Euro 10.5 million compared to 9M 2021. This change is mainly attributable to the new scope of consolidation, particularly in Germany.
• The Group cost of electricity in the first nine months of 2022 was Euro 6.3 million, more than doubling compared to Euro 3.1 million in the same period of 2021, most of which was attributable to the German region.
• WIIT Group's margin impacted by higher electricity costs, margin improvement of the acquired companies continued thanks to the concentration in Cloud services, the level of optimisation achieved in the organisation of operational processes and services, and cost synergies. - Italy 36.8%
• Germany 33.2%

Pag. 6

*The Adjustment refers to 1.0 M€ of costs relating to stock option and stock grant plans and for 0.7 M€ to the M&A transactions.

Financial Highlights

9M 2022

vs

9M 2021

+30.2% Ebit Adjusted* 15.4 M€ vs 11.8 M€ in 9M 2021 Ebit margin Adj. of 18%

*The Adjustment refers to the Purchase Price Allocation of the acquisition for 3.7 M€ and it includes the variations for EBITDA Adjustment too.

+29.5% Net Profit Adjusted* 9.6 M€ vs 7.4 M€ in 9M 2021

*The Adjusted consolidated net profit excludes the effects from M&A's for 0.7 M€, costs for the stock options and stock grant plans of 0.6 M€, amortization and depreciation from the Purchase Price Allocation regarding the acquisitions for 3,7 M€, income from the difference between the estimated price to acquire the equity investments and the actual price paid for Mivitec GmbH of 0.4 M€ and net of the tax effects of the above. Financial charges in 9M 2022 principally concerned the effects of interest on the bond loan for 3 M€.

vs 9M 2022

Financial

Highlights

9M 2021

180 M€

Financial Highlights Net debt 140.6 M€ at December 31, 2021

• Acquisiton of ERPTech for 4.0 M€ and LANSOL for 18.1 M€;
• Strong operating cash flow generation;
• Treasury Shares Buy Back of 7.6 M€ ;
• Payment of Earnout and Minorities for 5.6 M€ ;
• The treasury shares value (approx. 22.2 M€ at mark to market value at September 30, 2022) is not included in the cash accounting;
• Release of investment activities for 21 M€ to support acquisitions without increasing debt;
• Payment of dividends for 8.4 M€ ;
• IFRS16 effect of -10.4 M€ in H1 2022 (-10.7 M€ at December 2021);
• WIIT Group is not exposed to the risk of rising interest rates debt almost entirely related to the Euro 150m fixed-rate bond at 2.375%.

9M 2022

vs

FY 2021

• . Pag. 8

Shareholders Structure

As at 10 November, 2022 No. Shares 28,020,660