Seco S p A : Nine-month financial report as of September 30, 2022

SECO S.p.A.

QUARTERLY FINANCIAL REPORT AT SEPTEMBER 30, 2022

SECO S.p.A.

Registered office in Arezzo, via A. Grandi 20

Share capital Euro 1,153,797.85

VAT No. 00325250512

Arezzo Companies' Registration No. 4196

CONTENTS
CORPORATE BOARDS...................................................................................................................................................	3
THE GROUP AND ITS OPERATIONS ...........................................................................................................................	4
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED INCOME STATEMENT AT SEPTEMBER 30, 2022
............................................................................................................................................................................................	9
Consolidated Balance Sheet ......................................................................................................................................	9
Consolidated Income Statement..............................................................................................................................	10
Consolidated Comprehensive Income Statement .................................................................................................	11
Consolidated Cash Flow Statement ........................................................................................................................	12
Consolidated Statement of Changes in Equity.......................................................................................................	13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ..............................................................................	14
OPERATING PERFORMANCE TO SEPTEMBER 30, 2022 ......................................................................................	17
Sales revenues by region..........................................................................................................................................	17
Alternative operating performance measures........................................................................................................	18
Alternative financial performance measures ..........................................................................................................	19
SUBSEQUENT EVENTS................................................................................................................................................	21
OUTLOOK .......................................................................................................................................................................	21

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CORPORATE BOARDS

Board of Directors

Office held until the approval of the 2023 annual accounts

Chairperson	Daniele Conti
Chief Executive Officer	Massimo Mauri
Directors	Claudio Catania
	Emanuela Sala
	Luca Tufarelli
	Luciano Lomarini
	Michele Secciani
	Elisa Crotti
	Giovanna Mariani
	Diva Tommei

Board of Statutory Auditors

Office held until the approval of the 2023 annual accounts

Statutory Auditors	Pierpaolo Guzzo (Chairperson)
	Gino Faralli
	Fabio Rossi
Alternate Auditors	Marco Badiali
	Maurizio Baldassarini
Executive Officer for Financial Reporting	Lorenzo Mazzini
Independent Audit Firm	Deloitte & Touche S.p.A.

Office held until the approval of the 2029 annual accounts

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THE GROUP AND ITS OPERATIONS

The SECO Group (hereinafter also referred to as the "Group" or "SECO") consists of the parent company SECO S.p.A., hereinafter also referred to as the "Company" or "Parent Company", and its subsidiaries, as presented below:

The Company's registered office is located in Arezzo (AR), via Achille Grandi 20.

SECO is a high-tech group engaged in computer miniaturization and the Internet of Things (IoT). In a rapidly evolving and growing marketplace, the Group is renowned for its innovative and customized solutions.

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MARKET OVERVIEW

As digital technologies become ubiquitous, we are entering an era of interconnected devices, analytics, and artificial intelligence. The increasing number of intelligent devices - which can process data at the source (edge computing) and are connected to the cloud - is opening the door to new business models, creating major development opportunities, and helping to improve people's overall safety and quality of life.

The evolution of technologies such as the Cloud, Big Data and Analytics, Artificial Intelligence and the Internet of Things has accelerated the digital transformation of business processes worldwide, and the way in which companies approach the creation, provision and use of ICT products and services.

In the current environment, speed of execution and time to market are key aspects not only for competitivity, but also for a business's survival. We are witnessing across the globe a strong drive towards digitalization.

The COVID-19 pandemic has certainly sped up this trend, bringing digitalization to many sectors and environments of daily life which historically were far removed from this world. This trend has also advanced significantly in the industrial environment, where businesses across all sectors increasingly require more innovation, digitalization and interconnection among their products.

Climate change and issues surrounding raw material and energy supply have combined to make accelerating the digital transition increasingly crucial. Against this backdrop, digitalization will play a key role. Through Artificial Intelligence, it will offer advanced tools to support renewable energy, energy efficiency, and reduced consumption of industrial and personal devices.

The many relaunch and investment incentives programs underway in numerous countries shall contribute to further speeding up these trends, ensuring growth of the connected devices and IoT market comfortably in the double-digits, as indicated by all of the most trusted sector studies.

OPERATING OVERVIEW

The third quarter of 2022 saw the Group continue the strong performance delivered in the first half of the year. Development continued of new Edge Computing products and CLEA software platform features in the first nine months of 2022. SECO further strengthened its presence and position in the IoT and AI market through a number of major agreements to add weight to its commercial offerings.

In March, Impresa Pizzarotti & C. S.p.A., a leading company in the design and construction of road, rail and airport infrastructure and health and residential construction, chose CLEA, SECO's IoT and AI software platform, to enable "smart" management of road and hospital infrastructure using a range of high added-value applications and functionalities.

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