Wiit — M&A Activity 2020

Sep 21, 2020

WIIT – Acquisition of myLoc in Germany

WIIT enters the largest European cloud market and increases EPS

Milan, September 2020

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myLoc managed IT AG at a glance

(1) Calculated as Net OpFCF/EBITDA (net is calculated subtracting Capex & Leasings). (2) Year-on-year growth of 2019 total revenues vs 2018 total revenues (3) Calculated as Gross OpFCF – Capex&Leasings

• Established in 1999, Düsseldorf-based myLoc managed IT AG develops Colocation, Private&Public Cloud and Managed hosting services

• Strong regional market position in mid-west Germany
• Focused on premium managed IT infrastructure solutions

• >70 employees

Milestone on WIIT's path for FUTURE GROWTH

Germany was/is the main priority!

WIIT's M&A STRATEGY

Acquisitions in Italy 1. to increase Wiit's market share and gain synergies (example: data centres)	Strategic acquisitions to enter more effectively in foreign 1. markets leveraging on: • a local established brand • a native salesforce with relationships with local clients, knowledge of local market and datacenter in the country Cost savings mainly achievable thanks to the centralization of 2. operations in Italy. Two examples:
	Profile Integration risks Synergies
	I. Cloud players with a business model cost synergies lower (same comparable to Wiit and multiannual business contracts schemes model)
	II. IT players which can be considered cost synergies + medium part of the current Wiit Value Chain revenuesynergies (for instance Datacenter, Cloud laaS), (up-selling) have a client base suitable to an up- selling strategy and possibly multiannual contracts
Italy	Europe (FR, DE)
External Growth

Excellent fit for WIIT's M&A STRATEGY

Acquisitions in Italy 1. to increase Wiit's market share and gain synergies (example: data centres)	Strategic acquisitions to enter more effectively in foreign 1. markets leveraging on: • a local established brand $\cdot$ a native salesforce with relationships with local clients, knowledge of local market and datacenter in the country Cost savings mainly achievable thanks to the centralization of 2. operations in Italy. Two examples:
	Profile Integration risks Synergies I. Cloud players with a business model cost synergies lower (same comparable to Wiit and multiannual business contracts schemes model)
	II. IT players which can be considered cost synergies + medium part of the current Wilt Value Chain revenuesynergies (for instance Datacenter, Cloud laaS), (up-sellina) have a client base suitable to an up- strateav selling and possibly multiannual contracts
Italy	Europe (FR, DE)
External Growth

1. myLoc is a highly strategic acquisition for WIIT entering the attractive and growing German market:

• ü Strategically located in Düsseldorf, providing access to Germany's core commercial regions as well as a bridgehead into the Benelux countries
• ü A native sales force with relationships with local clients + Experienced and committed young local management team
• ü Own data centre featuring cutting-edge technology + One-stop-shop solution provider for mission-critical cloud services
• ü A platform for further consolidation of German market
• ü Strong cash flow thanks to a high share of recurring revenues
• 2. Low integration risk profile with tangible revenue synergies opportunity through premium cloud services up-selling potential

Profile Similar cloud player with multiannual contracts	Synergies Tangible synergies opportunities	Integration risks Low

Transaction is expected to positively contribute to WIIT's financials and provide significant boost to its earnings generation

Source of WIIT Revenue and EBITDA forecasts: Average of Analysts Consensus for 2020-21 (source: Banca IMI, Intermonte SIM and Midcap LCM, May 2020) + myLoc Management's plan

Transaction to be completely financed by debt, expected to deleverage in the coming years thanks to strong cash flow profile of the combined business

Note: Assuming capital structure at June 2020 remains constant going forward. (1) Including value of treasury shares (temporary estimated140€ * 127.656 shares=17,9M)

WIIT TAKES YOUR BUSINESS ABOVE THE CLOUDS

ir@wiit.cloud wiit.cloud