SeSa S p A : Group Presentation - ISMO 2020

Group Presentation

ITALIAN STOCK MARKET OPPORTUNITIES 2020

May 15, 2020

Alessandro Fabbroni - Chief Executive Officer

Conxi Palmero - Investor Relation Manager

Group Overview

IT Market Trend and COVID scenario

Group Results as of January 31, 2020 (9M)

2011-2020E Financial Results

Governance and Investors Information

Annexes Financial Statements

2

Group Structure and Market Position

	SeSa Group is a leading Italian IT services	Consolidated revenues of Eu 1.55 Bn1 and
	and solutions provider	2,645 employees2

Key player driving digital transformation to the Italian economy

Technology, digital services and business applications in the innovative areas of IT

Corporate

Group's Strategy, Governance, Human Resources, Planning & Control, Finance, Legal, ICT Operations, M&A through the parent company SeSa SpA. Revenues for Eu 17 Mn (FY 2019), 180 human resources

Value Added Distribution («VAD»)

Value-added distribution ("VAD") with a customer base of over 13,000 business partners through the fully owned company Computer Gross SpA ("CG"). Revenues for Eu 1,301 Mn (FY 2019), 375 human resources

Business Services («Base Digitale»)

Business Services and Business Process Outsourcing, focused on Financial Enterprise, through the controlled company Base Digitale SpA. Revenues for Eu 50 Mn, 290 human resources (Group consolidation since March 2020)

Software and System Integration («SSI»)

System integrator ("SSI") for Enterprise and SME with a customer base of over 10,000 final users through the fully owned company Var Group SpA.

Revenues for Eu 343 Mn (FY 2019), 1,800 human resources

1 Financial Statements as of April 30, 2019	2 Human Capital as of April 30, 2020E	3

Business Model and Investment Case

Continuous and Sustainable Growth since 1973

• New IT Vendors partnerships and major IT trends over-performing Italian market
• M&A: strategic acquisitions as driver of human capital development and internationalization
• Long-termCAGR over 10%

Italian gateway to the digital technology

• Italian SME & Enterprise reference player
• Skills and solutions on high growth areas of IT

Double Digit Annual Track Record

since 2011

Revenues	CAGR 2011-2019
Eu 1,551 Mn	+9.6%
EBITDA	CAGR 2011-2019
Eu 74.3 Mn	+10.1%
EAT	CAGR 2011-2019
Eu 33.4 Mn	+13.8%
Group's EAT	CAGR 2011-2019
Eu 29.3 Mn	+12.4%
Group's Adjusted EAT	CAGR 2011-2019
Eu 31.4 Mn	+13.2%

Long term partnerships

• Strategic partner of Global IT Vendors
  ("IT Titans"), in the most innovative areas of IT
• Focus on value-added segments of IT: Enterprise Software, Networking, Collaboration, Cloud, Security, Analytics

Human Capital Development

• About 2,650 highly qualified people specialized in the high-growthIT segments
• Recruitment and training programs from Italian Universities and High- schools (over 150 people in FY 2019)
• Welfare programs dedicated to Human Capital

Source: FY 2011-19 Group Financial Statements

4

External Growth as long-term growth driver: M&A timeline

		2015								2019		2020
			2016		2017		2018
REVENUES		Eu 36.0		Eu 23.0		Eu 56.0		Eu 22.5		Eu 39.0		Eu 58.0

EBITDA

Eu 2.5

Eu 2.4

Eu 2.5

Eu 3.0

Eu 3.2

Eu 5.5

At acquisition time

• Eu 235.0
• Eu 18.5

As of today

• Eu 260.0
• Eu 23.0

VAD

SSI

Revenues Eu 94

Revenues Eu 95

Revenues Eu 18

Ebitda Eu 3.4

Ebitda Eu 3.3

Revenues Eu 6.0

Revenues Eu 50

Revenues Eu 20

Ebitda Eu 0.5

Ebitda Eu 1.5

Ebitda Eu 0.7

Ebitda Eu 0.7

Ebitda % 3.7%

Ebitda % 3.5%

Revenues Eu 16

Revenues Eu 4

Revenues Eu 6

Revenues Eu 6.5

Revenues Eu 10

Revenues Eu 3.0

Ebitda Eu 1.0

Ebitda Eu 0.6

Ebitda Eu 1

Ebitda Eu 0.9

Ebitda Eu 1.5

Ebitda Eu 1.0

Revenues Eu 96

Revenues Eu 116

Ebitda Eu 12.9

Ebitda Eu 16.5

Revenues Eu 2.5

Revenues Eu 5

Revenues Eu 16

Revenues Eu 9.0

Revenues Eu 4.2

Ebitda Eu 1.0

Ebitda Eu 0.75

Ebitda Eu 2.1

Ebitda Eu 1.0

Ebitda Eu 1.0

Ebitda % 13.4%

Ebitda % 14.3%

Revenues Eu 14

Ebitda Eu 1.0

Business Services

New Business Line (since March 2020) Base Digitale

Revenues Eu 45

Ebitda Eu 2.8

• Over Eu 70 Mn investments, 18 M&As since 2015,2017Eu 260 Mn revenues2018 and Eu 23 Mn 2019Ebitda as of today (full2020year 2021)
• Long-termvalue generation, average EV/Ebitda multiple 4.75, long-term commitment of key people (average 10 Years)

Revenues Eu 45

Ebitda Eu 2.3

Ebitda % 5.1%

Revenues Eu 50

Ebitda Eu 3.0

Ebitda % 6.0%

5

Leadership in Italian VAD Market

Leadership in Italian VAD market, with 46.7%* market share. Total VAD Revenues and Other Income of Eu 1,301 Mn as of April 30, 2019 (CAGR 2011-2019 +8.7%)

Customer base of over 13,000 BPs (Software Houses, System Integrators, Managed Service Providers) and full coverage of the Italian territory (15 local branches)

Long-term partnerships with about 100 major IT Vendors (track record without termination of any relevant Vendor since the beginning)

About 375 highly skilled human resources with 500 technical certifications on IT major Vendors solutions (Storage, Enterprise Software, Networking, Digital Work Place, Security, Collaboration). Cloud platform (Solution Up) dedicated to enable and develop SaaS, IaaS and XaaS solutions

	Italian market share (1)		Revenues breakdown
				PCs &
	Others	Computer	Add-on	Enterprise
23.5%	Gross	24%
Software
		46.7%*
			30%
Ingram
Micro Italia			Networking
6.0%
		8%
Tech Data			IT Services	Server,
		Storage
9.1%			12%

26%

Esprinet

14.7%

* Including ICOS (CG subsidiary)

Italian VAD market share by segment

Servers, Systems, Storage

Enterprise Software

Networking

Packaged Services

50%

50%

64%

36%

27%

73%

40%

60%

Computer Gross* Others

(1) Source Sirmi (May 2020), market share on total Italian VAD market

6

Digital and Innovation Partner for Enterprises and SMEs (SSI)

Revenues breakdown

VAR Group is a leading	Innovation partner for
Italian Software and	Italian SME and Enterprises
System Integration	with over 1,750 employees
("SSI") player for	(over 2,000 qualified human
Enterprises and SME	resources including
SSI revenues reached Eu	integrated ecosystem). Full
342.8 Mn as of April 30,	offering of solutions under
2019 (CAGR 2011-2019	6 business units from BTS to
+11.7%).	Digital Cloud, Digital
	Security, Digital Process,
	Customer Experience, ERP
	& Vertical

Hybrid Cloud services to	Offering of Business
customers (SaaS, PaaS,	and Vertical
IaaS) integrating public	Applications for
cloud solutions with own	Italian districts.
datacenter services	Growing focus on
(datacenter based in	Digital
Empoli and in Milan).	Transformation
R&D focusing on most	Solutions: vertical
innovative areas: A.I.,	solutions, customer
IOT, Virtual & Augmented	experience, data
Reality, Cyber Security,	analytics, digital
Blockchain	process

About 30 M&A over the last 3 years

focused on the most innovative areas of IT Coverage of Italian territory (23 branches) and some European countries (3 branches in Germany, 1 in Spain)

Digital	Digital	Customer Experience
Cloud	3%
Security
5%
6%
Digital		Managed
	Services
Process
	49%
8%
ERP & Vertical
Software Sol.
29%

	MANAGED
	SERVICES AND IT			DIGITAL CLOUD			DIGITAL SECURITY			DIGITAL PROCESS
	INFRASTRUCTURE
•	Business Technology		• SaaS, DaaS, IaaS, PaaS		•	Security Assessment		•	Product Lifecycle
	Solutions		•	Network Operations		•	Cyber Intelligence and		•	Management (PLM)
•	Digital workplace			Center (NOC)			malware analysis		Industry Software
•	Collaboration		•	Serverless architecture		•	Digital Forensic			Solutions
•	Service desk					•	Security Operation		• 6 branches in Italy, 3
•	Application						Center (SOC)			in Germany, 1 in Spain
	management

CUSTOMER

EXPERIENCE

• Marketing & Digital Strategy
• Branding & Creativity
• Omnichannel commerce
• Easy Export (1 branch in China)

ERP & VERTICAL

SOLUTIONS

• ERP Solution on Internat. platforms (SAP, Microsoft )
• Own Proprietary ERPs (Sirio, Panthera, Apra, Sigla++) for Italian SMEs
• Vertical Solutions for Italian SMEs (Wine, Food, Furniture, Mechanics, Retail, Logistics)

7

Business Services

Base Digitale with about 300 Human resources and Revenues for approximately Eu 50 million operates in the

supply of IT, Business Services and Business Process Outsourcing for Financial Large Enterprise, enabling Sesa Group to operate in an additional market segment with primary customers including some of the main Italian banking groups, with high potential synergies and value generation.

Base Digitale entered in Sesa scope of consolidation since March 2020

Revenues breakdown

Digital Transformation

10%

Security	Business
Services
Services
50%
40%

Base Digitale established in February 2020 by Sesa SpA (50% share of capital) in partnership with Marco Bassilichi (25%) and Leonardo Bassilichi (25%), with multi-yearexperience in business services sector

Annual Revenues of	Business services, business	Digital design of processes
around Eu 50 million,	process outsourcing	through the skills (content
primary customers in	("BPO"), innovation in	and information
Financial Large Enterprise	support of customers.	management thanks to
sector. Multi-year	Focus on human capital	multi-year partnership with
partnership with	quality, organization and	OpenText)
Accenture Group, human	innovation in favour of
capital of about 300	clients.
resources

Security services and control room for the Finance and Retail sector through the fully owned subsidiary ABS Technology Srl

8

Human Capital and Social Responsibility

2300

2100

Human capital development as strategic driver of

Group sustainable long-term growth

2,645

Recruitment Programs

Human Capital of about 2,650 qualified people1 with professional skills in main innovative IT areas (cloud, security, digital solutions, analytics, IoT).

Recruiting programs with over 150 qualified new people in FY 2019

Training Programs	Welfare Programs	Social Responsibility
Training and	Corporate welfare	Commitment to
education	programs aiming	sustainable growth
programs in	at increasing HR	and value generation
partnership with	wellness and	towards all
Vendors to develop	work-life balance,	stakeholders (human
human capital skills	supported by	capital, environment
and habilitate	Fondazione Sesa	and social
innovation	(non-profit	communities where
technology	foundation	Sesa Group is
(18,000 hours in FY	providing welfare	operating)
2019) with a 64%	and charity)
increase compared
to about FY 2018

1900

1700

1500

1300

1100

900

700

																1,875
		HR CAGR 2011-19 +11.8%	1,642
		1,427
												1,215
								1,150
						912	974
		818	863
777											98%	of Human Capital under
															permanent employment1
Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30 Apr 30
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

1 Group Employees as of April 30, 2020E

9

Alessandro Fabbroni - Chief Executive Officer

Conxi Palmero - Investor Relation Manager

Group Overview

IT Market Trend and COVID scenario

Group Results as of January 31, 2020 (9M)

2011-2020E Financial Results

Governance and Investors Information

Annexes Financial Statements

10

Outlook and Covid scenario

Current scenario & Outlook

• Economic weakness and uncertainty
• Acceleration of digital transformation demand from companies and organizations (new platforms and process reengineering)
• Main drivers of IT demand: collaboration, security, digital commerce, cloud, in different waves:
• • Strategic/primary sectors (tlc, banking, insurance, utilities, public, pharma, food distribution and logistics) without interruption under lockdown period
  • Other sectors (fashion, furniture, mechanics, automotive) impacted by lockdown, with structural need of digital transformation from phase 2

Sesa Group actions

• To protect the health of our employees
• To guarantee continuity of Group operations and IT supply chain (essential and strategic for every economic sector)
• To mitigate the financial impact of Covid-19 focusing on customer services, costs savings and working capital management
• In such a scenario of strong discontinuity, Sesa Group intends to strengthen its role of reference player of IT in Italy, supporting digital transformation of Italian economy
• Acceleration of M&A pipeline since March (vendors, clients and human capital attracted by reliable and stronger market players)

11

IT Italian Market trend 2017-2023

IT Italian market (2017-23E) in Eu Mn

CAGR 2017-2023E +2.91%

IT Italian Market Trend (Eu Mn)	2017	2018	2019	2020E	2021E	2022E	2023E
Hardware	6,044.2	6,025.0	6,172.0	5,945.0	6,136.9	6,300.5	6,464.1
Software	3,832.7	3,845.0	3,861.3	3,762.1	3,792.6	3,830.1	3,867.6
Project Services	3,436.2	3,500.0	3,588.0	3,279.1	3,431.0	3,533.1	3,635.2
Managed Services	5,503.8	5,900.0	6,350.2	6,653.2	7,214.6	7,800.6	8,386.7
TOTAL	18,816.9	19,270.0	19,971.5	19,639.4	20,575.0	21,464.3	22,353.5
% Annual growth	17/16	18/17	19/18	20/19	21/20	22/21	23/22
Hardware	0.6%	-0.3%	2.4%	-3.7%	3.2%	2.7%	2.6%
Software	-0.4%	0.3%	0.4%	-2.6%	0.8%	1.0%	1.0%
Project Services	0.4%	1.9%	2.5%	-8.6%	4.6%	3.0%	2.9%
Managed Services	6.0%	7.2%	7.6%	4.8%	8.4%	8.1%	7.5%
TOTAL	1.9%	2.4%	3.6%	-1.7%	4.8%	4.3%	4.1%

• Positive Trend of IT Italian market since 2016 Year (in 2018-2019 Years highest growth annual rate over last 10 Year period)
• Outlook of Italian IT market for 2020 under review following the Covid 19 outbreak (2020 decrease rate of -1.7% compared to +2.8% previous estimate)*
• Improvement of growth rate expected in 2021 and 2022 resulting from the recovery of the economy and the boost of digitalization and digital transformation*
• 2020 IT European market expected to grow 1.3% (compared to 3.5% of pre-Covid estimates), with a 4% growth in 2021-22 driven by higher demand of digitalization and recovery of economy**

* Source Sirmi, May 2020	** Source IDC Europe, March 2020	Managed Services include Digital Cloud, Security, Digital Process Services
		12

Continuous and Sustainable Growth Since 90s in every phase of economic cycle

Continuous growth over-performing

1,780 - 1,820(E)

the reference IT Italian market

				522	546	570	579	604
				476			Financial
			366	402			Crisis
		339			2008/2009
		261					ITA GDP
	148	185					(-6.6%)
	24 42 75						Group
7						Growth
						(+4%)

1,551

1,363

1,271

1,230

1,060

948

812 832

747

665

Revenues CAGR 2011-19 +9.6% Credit Revenues Growth 9M 2020 +17.3%

Crunch

2011/2012

ITA GDP (-2.8%)

Group

Growth

(+9%)

Group Consolidated sales & other revenues in Eu Mn

Group Resilience to market crisis

over the last Years

Recent pipeline of new partnerships in enterprise software, cloud and security

M&A and human capital as crucial driver to support sustainable growth

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E

21

48

67

90

148

185

225

293

316

347

551

601

633

666

701

738

777

818

863

912

974

1.150

1.215

1.427

1.642

1.875

2.600

(E) Range of Analysts Consensus, FY 2020E

13

Alessandro Fabbroni - Chief Executive Officer

Conxi Palmero - Investor Relation Manager

Group Overview

IT Market Trend and COVID crisis

Group Results as of January 31, 2020 (9M)

2011-2020E Financial Results

Governance and Investors Information

Annexes Financial Statements

14

9M 2020: strong improvement of profitability and cash flow generation

Revenues

Ebitda1

Group EAT1

Group Adj2 EAT

Net Financial Position1

Eu 1,344.8 Mn

Eu 69.5 Mn

Eu 28.7 Mn

Eu 30.9 Mn

Eu 11.8 Mn (net debt)

9M 2020

(+17.3% Y/Y)

(+30.3% Y/Y)

(+29.5% Y/Y)

(+30.7% Y/Y)

Eu 1.3 Mn (net cash)

(May 19

Gross of IFRS 16 adoption

-Jan 20)

Ebitda Margin

Group EAT margin

Group Adj EAT margin

vs Eu 12.6 Mn (net debt) Y/Y

5.2% (vs 4.6% 9M 19)

2.1% (vs 1.9% 9M 19)

2.3% (vs 2.1% 9M 19)

Eu 1,550.6 Mn

Eu 74.3 Mn

Eu 29.3 Mn

Eu 31.4 Mn

Eu 41.9 Mn

Full Year

(+13.8% Y/Y)

(+17.8% Y/Y)

(+9.0% Y/Y)

(+9.8% Y/Y)

(cash & liquidity)

April 30, 2019

Ebitda Margin

Group EAT margin

Group Adj EAT margin

Average annual NFP eu 7.5 Mn

4.8% (vs 4.6% FY 18)

1.9% (vs 2.0% FY 18)

2.0% (vs 2.1% FY 18)

(Cash & liquidity)

+9.6%

+10.1%

+12.4%

+13.2%

From Eu 53.5 Mn debt to Eu 41.8 Mn cash (net of

CAGR 2011-19

eu 45.8 Mn of dividends & Eu 7.8 Mn buyback)

1IFRS 16 adoption effect on 9M 2020: Eu 13.1 Mn higher financial debt, Eu 3.8 Mn higher Ebitda, Eu 0.06 Mn (neutral effect) lower Net Profit after taxes (EAT)

2 Adjusted Net Profit (EAT) after minorities, gross of amortisation of intangible assets (client lists and know-how deriving from PPA)	15

Group Results by Segment

Economic results as of January 31 (9 months)

In Euro Mn	Jan 31,	Jan 31, 2018	Jan 31, 2019	Jan 31, 2020
2017 (9M)	(9M)	(9M)	(9M)
	VAD	VAD	VAD	VAD
Total Revenues*	826.5	833.3	965.4	1,097.4
Gross Margin	65.9	64.5	68.5	77.5
Opex	(33.7)	(35.4)	(35.1)	(37.5)
Ebitda	32.2	29.1	33.3	39.9
Ebitda Margin	3.89%	3.49%	3.45%	3.64%
D&A, Provisions	(4.5)	(5.1)	(7.3)	(5.4)
Ebit	27.7	24.0	26.1	34.5
Ebit Margin	3.35%	2.88%	2.70%	3.15%
Net Financial Charges	(2.2)	(1.5)	(1.9)	(2.2)
Income Taxes	(7.8)	(5.7)	(6.4)	(8.4)
Net Profit	17.7	16.8	17.7	23.9
Eat Margin	2.14%	2.02%	1.84%	2.18%
Group Net profit	17.6	16.8	17.6	23.7

Jan 31, 2017	Jan 31, 2018	Jan 31, 2019	Jan 31, 2020
(9M)	(9M)	(9M)	(9M)
SSI	SSI	SSI	SSI
173.2	220.2	253.7	308.5
93.0	125.2	157.0	185.1
(83.6)	(109.6)	(137.8)	(157.8)
9.4	15.6	19.2	27.3
5.44%	7.07%	7.57%	8.85%
(3.9)	(5.5)	(7.0)	(12.5)
5.5	10.1	12.2	14.8
3.19%	4.60%	4.83%	4.78%
(0.9)	(0.7)	(1.1)	(1.5)
(2.1)	(3.6)	(3.7)	(4.3)
2.5	5.8	7.5	9.0
1.46%	2.63%	2.97%	2.91%
1.3	3.3	4.7	5.3

Jan 31, 2017	Jan 31, 2018	Jan 31, 2019	Jan 31, 2020
(9M)	(9M)	(9M)	(9M)
Group	Group	Group	Group
945.0	992.6	1,146.3	1,344.8
157.2	181.7	215.1	255.2
(114.8)	(135.8)	(161.8)	(185.8)
42.4	45.9	53.3	69.5
4.48%	4.62%	4.65%	5.17%
(8.8)	(11.5)	(14.9)	(20.2)
33.6	34.3	38.4	49.2
3.55%	3.46%	3.35%	3.66%
(3.1)	(2.3)	(3.0)	(3.7)
(10.2)	(9.5)	(10.4)	(13.0)
20.3	22.6	25.0	32.5
2.15%	2.28%	2.18%	2.42%
19.0	20.1	22.1	28.7

Annual economic results as of April 30 (12 months)

In Euro Mn	April 30, 2017	April 30, 2018	April 30, 2019		April 30, 2017	April 30, 2018	April 30, 2019
(12M)	(12M)	(12M)		(12M)	(12M)	(12M)
	VAD	VAD	VAD		SSI	SSI	SSI
Total Revenues*	1,102.5	1,153.9	1,301.3		239.8	289.4	342.8
Gross Margin	86.5	87.6	95.0	132.0	171.7	208.5
Opex	(44.7)	(47.0)	(48.5)		(117.2)	(151.1)	(182.2)
Ebitda	41.8	40.6	46.6	14.8	20.7	26.2
Ebitda Margin	3.79%	3.52%	3.58%		6.16%	7.14%	7.66%
D&A, Provisions	(6.3)	(7.8)	(9.5)		(6.0)	(7.5)	(10.9)
Ebit	35.5	32.8	37.1	8.8	13.2	15.4
Ebit Margin	3.22%	2.84%	2.85%		3.68%	4.55%	4.49%
Net Financial Charges	(2.8)	(2.5)	(4.0)	(1.7)	(1.2)	(1.2)
Income Taxes	(9.8)	(7.8)	(9.2)	(3.1)	(4.4)	(4.6)
Net Profit	22.9	22.5	23.9	4.1	7.6	9.6
Eat Margin	2.08%	1.95%	1.83%		1.70%	2.64%	2.81%
Group Net profit	22.9	22.5	23.6		2.0	4.4	5.8

April 30, 2017	April 30, 2018	April 30, 2019	April 30, 2020 (E)
(12M)	(12M)	(12M)	(12M)
Group	Group	Group	Group
1,271.5	1,363.0	1,550.6	1,780 - 1,820
216.3	248.6	291.7
(158.4)	(185.5)	(217.3)
57.9	63.1	74.3	92.5 - 94.5
4.55%	4.63%	4.79%	5.22%
(13.1)	(16.8)	(21.6)
44.8	46.3	52.7	65 - 66
3.52%	3.40%	3.40%	3.64%
(4.6)	(3.6)	(5.2)
(13.1)	(12.5)	(14.1)
27.1	30.2	33.4
2.13%	2.21%	2.15%
25.0	26.9	29.3	37 - 40

(E) Range of Analysts Consensus for the FY 2020 - source: Banca IMI, Fidentiis, Intermonte, Mediobanca, before Covid 19 outbreak

16

Group Financial Results as of January 31, 2020

Higher Efficiency in NWC management

Group Net Financial Position1 (NFP) (Eu Mn)

Consolidated Shareholders Equity (Eu Mn)

		17.3%																		7.6% vs 9.4% 9M 20/9M 19				+0.8 Mn 9M 201/9M 19			+27.0 Mn 9M 20/9M 19
	15.7%					14.6%													8.0% vs 9.4% FY 19/FY 18					+13.9 Mn 9M 201/9M 19			+16.6 Mn FY 19/FY 18
																									28.7
	13.3%	13.3% 12.8%				12.0% 12.7%			12.6%																			251.6
							11.7%	11.6%					11.1%
								11.2%	10.5%	10.9%			10.7%
													10.0%
NWC/Revenues																10.2%	10.3%	9.4%	9.2%	9.4%					20.6													232.6
			7.4%																		8.0%		7.6%
FY2014 -								7.3%													8.1%										224.6
										6.3%			6.2%			5.5%			12.6
																		5.4%	6.7%6.4%
FY2020																														11.8					208.5				216.0
Quarterly *
																																			192.8				199.0
	1Q	2Q	3Q	4Q	Average	1Q	2Q	3Q	4Q	Average	1Q	2Q	3Q	4Q	Average	1Q	2Q	3Q 4Q	Average	1Q 2Q	3Q	4Q Average	1Q 2Q	3Q 4Q	Average	1Q	2Q	3Q												179.4
		(1.3)***
																												***Gross of IFRS 16 adoption
			2014				2015				2016				2017			2018		2019			2020
																	Average Annual NFP improvement
			64.9																			+0.8 Mn Y/Y
								45.3														+13.9 Mn Y/Y 1
	35.4				28.8					35.1			28.7														(41.8)		(41.8)
		27.8
		25.5				23.0																				(41.0) - (46.0) (E)
					22.2										20.6
Group NFP1										15.6	17.4				12.7						12.6			11.8
													8.4
FY2014 -																6.7			6.6 2.1												(52.0)
																-1.0		-6.3	1.1	-7.5
																										(54.7)
FY2020
				Average			3Q		Average				4Q	Average				Average			4Q Average	2Q		Average	1Q
Quarterly **	1Q	2Q	3Q	4Q	1Q	2Q	4Q	1Q	2Q	3Q	1Q	2Q	3Q 4Q	1Q 2Q	3Q	1Q -1.8	3Q 4Q	-1.4	2Q 3Q
			-26.2																						-1.9	Jan	Jan	Jan	Jan	Apr	Apr	Apr	Apr	Apr
			2014				2015				2016				2017			2018		2019		2020
																31	31	31	31	30	30	30	30	30
														-										-41.8
								-33.9																2017	2018	2019	2020	2016 2017 2018 2019 2020(E)
										41.8
																-52.0																	Jan	Jan	Jan	Jan	Apr	Apr	Apr	Apr
																			-54.7														31	31	31	31	30	30	30	30
																										Nine-Months Results		Annual Results
																													2017 2018 2019 2020	2016 2017 2018 2019

1. 1 IFRS 16 adoption since 2020: Eu 13.1 Mn higher financial debt, Eu 3.8 Mn higher Ebitda, Eu 0.06 Mn (neutral effect) on EAT

2. Quarterly Net Working Capital on annual rolling base Revenues; (**) Quarterly and Annual Average Net Financial Position in Euro Mn

(E) Range of Analysts Consensus for the FY 2020 - source: Banca IMI, Fidentiis, Intermonte, Mediobanca, before Covid 19 outbreak

17

Alessandro Fabbroni - Chief Executive Officer

Conxi Palmero - Investor Relation Manager

Group Overview

IT Market Trend and COVID crisis

Group Results as of January 31, 2020 (9M)

2011-2020E Financial Results

Governance and Investors Information

Annexes Financial Statements

18

Group Annual Economic and Financial Results 2011-2020E as reported

					1,780 - 1,820 (E)
					1,551
				1,363	+14.8%
			1,230	1,271	+17.4%
			948 1,060				Y/Y
Revenues **
(Eu Mn)	747	812	832

CAGR + 10.3%

			Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30 Apr 30
		2011	2012	2013	2014	2015	2016	2017	2018		2019	2020E
														37 - 40 (E)
													29.3
	Net profit								25.0	26.9
							24.0							+26-35%
	attributable						21.8
				19.9	20.7										Y/Y
	to the			16.8
	Group1 (Eu
	Mn, % on	11.5
	revenues)					CAGR + 14.0%
			Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30
		2011	2012	2013	2014	2015	2016	2017	2018	2019	2020E

			93 - 95 (E)
			74.3
		57.9 63.1	+25-28%
	49.5 51.6 54.0			Y/Y
EBITDA (Eu
Mn, % on	41.3 44.2

revenues) 34.4

CAGR + 11.8%

	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30
	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020E

53.5

4.2

Group NFP

(Eu Mn)	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30	Apr 30
2011	2012	2013	2014	2015	2016	2017	2018	2019	2020E
			(20.7)
		Feb 2013	(26.2)	(33.9)
			IPO		(41.8)			(41.8)
						(51.9)	(54.7)	(41.0 - 46.0) (E)

2020 Consensus disclosed before COVID 19 outbreak

(E) Range of Analysts Consensus for the FY 2020 - source: Banca IMI, Fidentiis, Intermonte, Mediobanca, before Covid 19 outbreak

(**) Sales and other revenues

19

Alessandro Fabbroni - Chief Executive Officer

Conxi Palmero - Investor Relation Manager

Group Overview

IT Market Trend and COVID crisis

Group Results as of January 31, 2020 (9M)

2011-2020E Financial Results

Governance and Investors Information

Annexes Financial Statements

20

Key Investor Information

Sesa (Euro)	2015	2016	2017	2018	2019	Current
Stock Market (1)	MTA -	MTA -	MTA -	MTA -	MTA -	MTA -
Star	Star	Star	Star	Star	Star
Stock market price	16.34	15.40	23.60	26.30	27.75	47.0
DPS - Dividend per share (*)	0.45	0.48	0.56	0.60	0.63	n.a.
Total Dividend (Eu Mn)	6.964	7.408	8.677	9.297	9.762	n.a.
Pay Out Ratio (2)	32.3%	31.4%	34.6%	34.6%	33.3%	n.a.
Outstanding Shares (Mn)	14.65	15.65	15.49	15.49	15.49	15.49
Market Capitaliz. (Mn)	255.7	241.0	365.7	407.5	430.0	728.0
Market to Book Value (**)	1.6	1.3	1.8	1.9	1.8	3.1
Dividend Yield (***)	2.8%	3.1%	2.4%	2.3%	2.3%	n.a.

	2015	2016	2017	2018	2019
EPS as of April 30 (****)	1.40	1.55	1.62	1.74	1.90
EPS diluted as of April 30 (*****)	1.39	1.54	1.62	1.73	1.89

Sesa Stock Total Return (3) based on current price

450%	416.2%
400%
350%		323.0%
300%
250%		221.2%
200%
150%
100%
50%
0%
TOTAL RETURN IPO	TOTAL RETURN 5 YEARS TOTAL RETURN 3 YEARS

1. Listing on AIM market following the merger with Made In Italy 1 SpA (SPAC under Italian law listed on AIM) completed on February 1, 2013. Listing on MTA Stock Exchange on October 23, 2013. Transition on MTA STAR segment on February 16 2015
2. Dividend/Consolidated Net Profit attributable to the Group as of April 30 of every Fiscal Year
3. Actual stock price (as of May 11, 2020) + Sesa annual dividends distributed over the period/initial stock price

*) Dividend paid in the following year counting on the current year **) Market Capitalization/Consolidated Group equity

***) Dividend per share/market value per share

****) Consolidated net profit as of April 30 of every year/average number of ordinary shares net of treasury shares in portfolio

*****) Consolidated net profit/average number of ordinary shares net of treasury shares in portfolio and inclusive of impact resulting from Stock Options/Grants Plans, warrants and/or convertible bonds. At the time of writing there are no warrants nor any kind of convertible bonds outstanding

21

Sesa Shareholders & Management Team

Anima SGR S.p.A.	Treasury Shares
4.998%	0.568%

ITH S.p.A.

Market52.814% 41.620%

Sesa shares are listed in the MTA Italian Stock Exchange since October 23, 2013 (transition on MTA STAR Segment on February 16, 2015). Total 15,494,590 outstanding ordinary shares

The share capital of the holding company ITH SpA includes the Group's Founders and Management Team, with industrial track record:

• Chairman Paolo Castellacci, 73 years old, Sesa Group Founder
• Chief Executive Officer Alessandro Fabbroni, 48 years old, joined Sesa Group in 2008
• Vice Chairman Giovanni Moriani, 63 years old. joined Sesa Group in 1980
• Vice Chairman Moreno Gaini, 58 years old, joined Sesa Group in 1982

Tamburi Investment Partners ("TIP"), an independent

investment/merchant bank listed on the STAR segment of the Italian Stock Exchange, holds 16% of ITH capital, controlling shareholder of Sesa Group. TIP, as medium-long term partner, will contribute to accelerate Group long term sustainable growth

Pursuant to Consob Regulations, no Shareholder exceeds the 5% threshold

22

MTA Star Italian Stock Exchange: Governance Requirements

Sesa is listed in the MTA STAR of Borsa Italiana (Italian Stock Exchange) dedicated to mid-size companies , compliant with the following requirements

High transparency and disclosure requirements;

Liquidity (free float of minimum 35%);

Corporate Governance compliant with best practices standard

SeSa BoD consists of 8 members of which 4 Executive Directors and 2 Independent Directors (among them 1 appointed by minorities)

1

2

3

4

5

6

7

Main STAR "status" requirements

Interim financial statements available to the public within 45 days from the Quarter end. Half interim financial report by 60 day from the end of the First Half

Favorable auditor's report on their latest separate and consolidated annual financial statements

Consolidated annual financial statements not challenged by Consob

Bi-lingual publication on the website (Italian and English) post interim financial statements, annual financial reports, half-year financial reports, consolidated annual financial statements (together with any other information specified by Borsa Italiana in the Instructions)

Mandatory presence of a qualified Investor Relations Manager and a "specialist" (eg. an intermediary charged (a) to display continuously bids and asks subject to certain limits,

1. produce researches on the issuer and (C) organize meetings between the management and professional investors)

Adoption of the organizational, operational and control models provided by art.6 of Legislative Decree 231/2011

Application of a Corporate Governance Code in relation to: (i) composition of the Board of Directors, (ii) the role and functions of non-executive and independent Directors, (iii) the creation and working of internal committees of the Board of Directors, (iv) remuneration of Directors, (v) appointment of a control and risk committee

23

Alessandro Fabbroni - Chief Executive Officer

Conxi Palmero - Investor Relation Manager

Group Overview

IT Market Trend and COVID crisis

Group Results as of January 31, 2020 (9M)

2011-2020E Financial Results

Governance and Investors Information

Annexes Financial Statements

24

Income Statement as of January 31, 2020 as reported

Reclassified Income Statement (Euro/thousand)	9M Jan 31 2018	%	9M Jan 31 2019	%	9M Jan 31 2020	%	Change
2020/19
Revenues	984,419		1,139,359		1,336,278		17.3%
Other income	8,150		6,914		8,494		22.9%
Total Revenues and Other Income	992,569	100.0%	1,146,273	100.0%	1,344,772	100.0%	17.3%
Purchase of goods	810,911	81.7%	931,203	81.2%	1,089,537	81.0%	17.0%
Costs for services and leased assets	77,250	7.8%	89,689	7.8%	99,046	7.4%	10.4%
Personnel costs	56,381	5.7%	69,597	6.1%	83,809	6.2%	20.4%
Other operating charges	2,145	0.2%	2,487	0.2%	2,914	0.2%	17.2%
Total Purchase of goods and Operating Costs	946,687	95.4%	1,092,976	95.4%	1,275,306	94.8%	16.7%
EBITDA	45,882	4.6%	53,297	4.6%	69,466	5.2%	30.3%
Amortisation tangible and intangible assets (software)	4,977		6,285		11,884		89.1%
Amortisation client lists and technological know-how	1,458		2,086		3,091		48.2%
Accruals to provision for bad debts and risks and other	5,100		6,556		5,268		-19.6%
non monetary costs
EBIT	34,347	3.5%	38,370	3.3%	49,223	3.7%	28.3%
Net financial income and charges	(1,736)		(2,354)		(2,447)		-3.9%
EBT	32,611	3.3%	36,016	3.1%	46,776	3.5%	29.9%
Income taxes	10,015		10,986		14,249		29.7%
Net profit	22,596	2.3%	25,030	2.2%	32,527	2.4%	30.0%
Net profit attributable to the Group	20,105		22,147		28,682		29.5%
Net profit attributable to non-controlling interests	2,491		2,883		3,845		33.4%

Interim Report approved by the Board of Directors, not audited

25

Balance Sheet as of January 31, 2020 as reported

Reclassified Balance Sheet (Euro/thousand)	9M Jan 31 2018	9M Jan 31 2019	9M Jan 31 2020	Change
2020/19
Intangible assets	37,276	44,630	66,579	21,949
Property, plant and equipment	54,104	56,223	73,697	17,474
Investments valued at equity	9,316	9,325	11,673	2,348
Other non-current receivables and deferred tax assets	16,802	21,703	25,595	3,892
Total non-current assets	117,498	131,881	177,544	45,663
Inventories	70,184	99,324	100,115	791
Current trade receivables	421,378	480,348	542,534	62,186
Other current assets	36,413	42,564	55,120	12,556
Current operating assets	527,975	622,236	697,769	75,533
Payables to suppliers	306,955	394,274	451,636	57,362
Other current payables	74,887	85,668	113,556	27,888
Short-term operating liabilities	381,842	479,942	565,192	85,250
Net working capital	146,133	142,294	132,577	(9,717)
Non-current provisions and other tax liabilities	13,782	15,721	17,937	2,216
Employee benefits	20,758	21,265	28,779	7,514
Non-current liabilities	34,540	36,986	46,716	9,730
Net Invested Capital	229,091	237,189	263,405	26,216
Equity	208,470	224,628	251,566	26,938
Medium-Term Net Financial Position	123,137	132,507	129,126	(3,381)
Short-Term Net Financial Position	(102,516)	(119,946)	(117,287)	2,659
Total Net Financial Position (Net Liquidity)	20,621	12,561	11,839	(722)
Equity and Net Financial Position	229,091	237,189	263,405	26,216

Interim Report approved by the Board of Directors, not audited

26

Income Statement as of April 30, 2019 as reported

Reclassified Income Statement (Euro/thousand)	April 30 2017	%	April 30 2018	%	April 30 2019	%	Change
2019/18
Revenues	1,260,275		1,350,900		1,539,854		14.0%
Other income	11,194		12,135		10,751		-11.4%
Total Revenues and Other Income	1,271,469	100.0%	1,363,035	100.0%	1,550,605	100.0%	13.8%
Purchase of goods	1,055,182	83.0%	1,114,393	81.8%	1,258,954	81.2%	13.0%
Costs for services and leased assets	85,106	6.7%	102,820	7.5%	117,293	7.6%	14.1%
Personnel costs	70,107	5.5%	79,053	5.8%	96,318	6.2%	21.8%
Other operating charges	3,189	0.3%	3,648	0.3%	3,694	0.2%	1.3%
Total Purchase of goods and Operating Costs	1,213,584	95.4%	1,299,914	95.4%	1,476,259	95.2%	13.6%
EBITDA	57,885	4.5%	63,121	4.6%	74,346	4.8%	17.8%
Amortisation tangible and intangible assets (software)	5,289		6,546		8,715		33.1%
Amortisation client lists and technological know-how	1,557		2,438		2,979		22.2%
Accruals to provision for bad debts and risks and other	6,253		7,847		9,934		26.6%
non monetary costs
EBIT	44,786	3.5%	46,290	3.4%	52,718	3.4%	13.9%
Net financial income and charges	(4,449)		(3,259)		(4,400)		35.0%
EBT	40,337	3.2%	43,031	3.2%	48,318	3.1%	12.3%
Income taxes	13,239		12,848		14,956		16.4%
Net profit	27,098	2.1%	30,183	2.2%	33,362	2.2%	10.5%
Net profit attributable to the Group	25,043		26,861		29,284		9.0%
Net profit attributable to non-controlling interests	2,055		3,322		4,078		22.8%

Annual Report approved by the Board of Directors and audited by Independent Auditor (PWC)

27

Balance Sheet as of April 30, 2019 as reported

Reclassified Balance Sheet (Euro/thousand)	April 30 2017	April 30 2018	April 30 2019	Change
2019/18
Intangible assets	21,848	39,083	54,001	14,918
Property, plant and equipment	49,736	55,221	57,771	2,550
Investments valued at equity	8,835	9,179	10,030	851
Other non-current receivables and deferred tax assets	13,998	17,264	27,354	10,090
Total non-current assets	94,417	120,747	149,156	28,409
Inventories	61,570	67,752	82,044	14,292
Current trade receivables	315,399	328,760	364,314	35,554
Other current assets	25,407	37,423	43,451	6,028
Current operating assets	402,376	433,935	489,809	55,874
Payables to suppliers	270,984	295,706	326,009	30,303
Other current payables	52,847	62,967	79,964	16,997
Short-term operating liabilities	323,831	358,673	405,973	47,300
Net working capital	78,545	75,262	83,836	8,574
Non-current provisions and other tax liabilities	8,457	14,175	17,792	3,617
Employee benefits	17,427	20,495	24,332	3,837
Non-current liabilities	25,884	34,670	42,124	7,454
Net Invested Capital	147,078	161,339	190,868	29,529
Equity	199,028	216,001	232,622	16,621
Medium-Term Net Financial Position	81,118	123,172	123,040	(132)
Short-Term Net Financial Position	(133,068)	(177,834)	(164,794)	13,040
Total Net Financial Position (Net Liquidity)	(51,950)	(54,662)	(41,754)	12,908
Equity and Net Financial Position	147,078	161,339	190,868	29,529

Annual Report approved by the Board of Directors and audited by Independent Auditor (PWC)

28

Disclaimer

This document has been prepared by Sesa SpA ("SeSa" or the "Company") or by its subsidiaries (hereinafter "SeSa Group") solely for this presentation and does not represent any investment research, recommendation, consulting or suggestion, concerning the Company or its shares or any other securities/financial instruments issued by the Company. This presentation can not be employed in a public offer or investment solicitation. As a result, the Company, its directors, employees, contractors, and consultants do not accept any liability in relation to any loss or damage, costs or expenses suffered by any person who relies on the information contained in this document or otherwise arising from the use of the same and any such liability is expressly disclaimed.

The Company does not assume any responsibility for the accuracy, sufficiency and completeness of the information contained in this document or in respect of any errors, omissions, inaccuracies contained in it. The presentation at any time is subject to updates and modifications by the Company. However, SeSa does not assume any obligation to communicate or otherwise make known any changes and updates. The document is not intended as, nor should it be regarded as a complete and comprehensive description of the Company and does not necessarily contain all the information that the recipients may consider relevant in relation to the Company. The provision of the Document does not give the recipient any right to access more information.

Sesa Manager in Charge and the officers preparing the Company financial reports hereby certify pursuant to paragraph 2 of art. 154-bis of Legislative Decree no. 58 of February 24, 1998, that the accounting disclosures of this document are consistent with the accounting documents, ledgers and entries.

This presentation contains forward-looking statements regarding future events and results of the Company that are based on the current expectations, projections and assumptions of the management of the Company. These declarations, being based on expectations, estimates, forecasts and projections, are subject to risks, uncertainties and other factors that depend on circumstances beyond the company's control and are not guarantees of future performance: the results or actual performance may therefore be different, even significantly, from historical and / or from those obtained and the Company does not assume any liability with respect thereto.

Reproduction, redistribution or transmission to third parties, or part, of this document are forbidden. Participation in the presentation or receipt of this document constitutes your acceptance of the terms and restrictions above.

29