Nexi S p A : 1Q 2021 Presentazione Risultati

nexi

1Q 2021 Results Presentation

May 13th, 2021

Disclaimer

• This Presentation may contain written and oral "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of Nexi Group (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
• The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
• Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Enrico Marchini, in his capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects Nexi Group's documented results, financial accounts and accounting records.
• Neither the Company nor any of its representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it.

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Key messages

Clear recent

volume acceleration after COVID-19 3rd wave

• Continued strong performance in Basic consumption sector
• Fast recovery in Discretionary consumption sector
• Visible signals of initial recovery in travel/leisure sectors

Growth performance in Q1

ahead of expectations

• Revenues +4.1% vs 1Q20 (+5.3% vs 1Q19)
• EBITDA +2.0% vs 1Q20 (+9.2% vs 1Q19)

Continued progress in creating the European PayTech leader

 Strong Nets and SIA standalone

performances

 Nexi-Nets closing confirmed in

2Q21

 Nexi- SIA closing expected in

3Q21

 Strong progress on 'Go-Live' and

transformation initiatives

2021 Ambition raised to

high single digit /double digit Revenue growth

 Extended ISP Merchant Services

partnership to UBI book

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Executive Summary

Covid-19 update

• Transaction volumes (acquiring + issuing) at 99 €B in 1Q21, +1.1% vs 1Q20 and -7.0%vs January and February 2020 and non-expectedCovid-19 third wave from March 2021. mid-January until mid-March when additional restrictions went into force in Italy

1Q19, despite difficult comparison with strong Steady recovery in transaction volumes since

• Double digit growth in the Basic consumption category in 1Q21, +21% vs 1Q20 and +40% vs 1Q191 and fast recovery in Discretionary spending. Travel/tourism and International travelers contribution still suffering. Strong performance of Italian Cards after a slow-downin mid-Marchdue to Covid-19third wave related restrictions
• Strong E-commerce acceleration in 1Q21 net of high impact consumption sectors: +30% vs 1Q20 and +63% vs 1Q191. Confirmed Overall 1Q21 E-commerceperformance less impacted by Covid-19compared to physical sales (transaction value +4% vs 1Q19)
• From mid-April easing of restrictions with new progressive reopening plan announced by the Government, coupled with accelerated roll out of vaccination plan
• Rapid recovery of acquiring volumes from mid-April after easing of the restrictions, with total volumes in the last week rolling (4th -
  10th May) at +7% vs 20191 :
• • Positive growth vs 2019 for Italian Cards (+21% vs 2019)
  • Confirmed double digit growth in Basic consumption category
  • Continued strong recovery in Discretionary consumption category
  • Visible signals of High impact consumption category recovery, especially for Restaurants and Bars
• Continued signs of acceleration from cash to digital transactions, in particular in sectors and Regions less affected by Covid-19 related restrictions

Note: (1) Data include International schemes only for Nexi Payments, International and national schemes for MePS. Sales volumes only	4

Executive Summary

Results highlights

• Revenues at 258.6 €M, +4.1% y/y in 1Q21, better than expected, and +5.3% vs 1Q19
• EBITDA at 139.8 €M, +2.0% y/y in 1Q21, better than expected, and +9.2% vs 1Q19

Key business update

• Merchant Services & Solutions (50% of Revenues): confirmed strong demand of advanced solutions by merchants, acceleration on mPOS proposition and continued strong e-commerce sales performance
• Cards and Digital Payments (38% of Revenues): sustained growth of cards customer base, continued growth in C-less transactions and mobile payments transaction volumes and good traction on Government Cash-back program
• Digital Banking Solutions (12% of Revenues): good progress on new customers/VAS in Self-banking, innovative Digital Banking offer and on go-to-market for Open Banking proposition; important project activity for banks, including banks' M&A
• Costs +6.6% y/y in 1Q21 and +1.2% vs 1Q19. Yearly comparison mainly impacted by 2020 cash cost extraordinary containment plan.
  Total costs at -0.9% y/y on a like-for-like comparison
• 1Q21 Net financial Debt/EBITDA down at 3.2x. Refinancing for Nets and SIA mergers successfully executed: debt tenor extension and significant reduction in the weighted average cash cost of debt

2021 Ambition raised to high single digit/double digit Revenue growth

M&A update

• Nets results1: Revenues at 230 €M, -3% y/y in 1Q21, and EBITDA at 60 €M, -10% y/y in 1Q21, better than expected

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SIA results: Revenues at 182 €M, +9% y/y in 1Q21, and EBITDA at 63 €M, +9% y/y in 1Q21, better than expected Closing confirmed in 2Q21 for Nets and expected in 3Q21 for SIA

UBI Merchant acquiring book acquisition signed. Incremental 2021E EBITDA ~16 €M; implied multiple of 10.5x EV/EBITDA 2021E

Note: (1) Adjusted for commercial rebasing and non-recurring eIDrevenue related to Issuer & eSecurityServices. Illustrative underlying EBITDA estimates assuming one-off customer losses related to legacy issuing contracts and one-off eIDrelated revenue	5
at 2019 EBITDA margin, price rebasing with full pass-through EBITDA.