Seco S p A : Presentazione risultati al 30 giugno 2023

SECO: H1 2023 Results and Strategy update presentation

September 13, 2023

Disclaimer

This document has been prepared by SECO S.p.A. ("SECO" or the "Company"), for information purposes only, exclusively with the aim of assisting you to understand and assess the activities of SECO. The information contained in this presentation does not purport to be comprehensive and may not have been independently verified by any independent third party.

Statements contained in this presentation, particularly regarding any possible or assumed future performance of the SECO Group, are or may be forward-looking statements based on SECO's current expectations and projections about future events.

Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results, including the financial condition and profitability of SECO to differ materially from, or be more negative than, those expressed or implied by such forward-looking statements, due to any number of several factors, many of which are beyond the ability of SECO to control or estimate precisely. Consequently, SECO and its management can give no assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual occurrence of the predicted developments.

The data and information contained in this document are subject to variations and integrations. Although SECO reserves the right to make such variations and integrations when it deems necessary or appropriate, SECO assumes no affirmative disclosure obligation to make such variations and integration, except to the extent required by law.

SECO does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

Any reference to past performance of the SECO Group shall not be taken as an indication of future performance.

In addition, this presentation includes or may include certain ''Adjusted'' financial and operating indicators and other measures, which have been adjusted to reflect extraordinary events, non-recurring transactions and activities which are not directly related to the Group's ordinary business.

Such "Adjusted" information has been included to allow a better comparison of financial information across the periods; however, it should be noted that such information is not recognized as measures of financial performance or liquidity under IFRS and/or do not constitute an indication of the historical performance of the Company or the Group. Therefore, investors should not place undue reliance on such data and information.

This presentation does not constitute a recommendation regarding the securities of the Company. This document does not constitute or form part of any offer or invitation to purchase or subscribe any shares issued by the Company and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

By reading this presentation, you agree to be bound by the terms set out.

2

Here today

Massimo Mauri	Lorenzo Mazzini	Lorenzo Tosi
CEO	CFO	Investor Relations

3

Key takeaways from 2023 YTD

Sustained organic growth path continuing

Gross margin improvement

profitabilityIncreased %

• H1 2023: Net sales at €111.9m, +19% organically vs. H1 2022
• CLEA business at €10.8m in H1 2023 (10% of sales), +12% vs. H1 2022
• Growth distributed across geographical areas and verticals
• Components' market back to normal, with margins progressively improving to pre-shortage levels
• CLEA's portion of recurring revenue increasing with many projects under deployment, reducing the weight of NRE
• GPM incidence at 49.6% in H1 2023, improving vs. H1 and FY 2022
• Adj. EBITDA at €26.5m in H1 2023
• 23.7% of sales, +32% vs. H1 2022
• Adj. Net Income at €12.6m, +46% vs. H1 2022

2023-24 outlook

• Despite the effects of a global economic slowdown, the organic growth trend, coupled with robust profitability, is expected to continue thanks to the visibility provided by order portfolio, design wins and ongoing negotiations

4

H1 2023 financial highlights

H1 22	H1 23
	Net sales	• Edge computing business growing at 20% in H1 2023 vs. H1 2022
€94.1m	€111.9m	• CLEA revenue at €10.8m in H1 2023 (vs. €9.6m in H1 2022)
	Gross margin	• +26% growth in H1 2023 vs. H1 2022
€44.0m	€55.5m	• Progressively improving components' market and positive CLEA revenue contribution
46.8%	49.6%	driven a significant margin expansion
	Adj. EBITDA
€20.1m	€26.5m	• +32% growth in H1 2023 vs. H1 2022
• More than proportional increase vs. revenue growth, thanks to OPEX control
21.4%	23.7%

Adj. Net Income

• +46% growth in H1 2023 vs. H1 2022

€8.6m	€12.6m	• D&A: +€3.0m higher vs. H1 2022
9.2%	11.3%	•	Financial expenses: +€0.6M higher vs. H1 2022, largely due to the increase in market interest rates
•	Taxes calculated with theoretical tax rate

…% = % of Net sales

5