SeSa S p A : Group grows in the Business Services sector

PRESS RELEASE

SESA GROUP GROWS IN THE BUSINESS SERVICES SECTOR

BASE DIGITALE ACQUIRES THE CONTROL OF THE COMPANIES IFM INFOMASTER,

DIGITAL STORM AND TECNIKE' AND STRENGTHENS THE OFFER OF DIGITAL PLATFORMS AND ENTERPRISE INFORMATION MANAGEMENT SOLUTIONS

THE ACQUISITIONS WILL GENERATE ANNUAL REVENUES OF EURO 15 MILLION

WITH 120 SPECIALIZED HUMAN RESOURCES AND AN EBITDA MARGIN OF OVER 20%

Empoli (FI), April 7, 2021

Sesa ("SESA" - SES.MI), reference operator in Italy in the sector of technological innovation and IT and digital services for the business segment, has subscribed through the subsidiary Base Digitale S.p.A. ("Base Digitale"), active in the Business Services sector, three binding agreements for the purchase of 63.1% of IFM Infomaster S.p.A. ("IFM"), 60% of Digital Storm S.r.l. ("Digital Storm") and 51% of Tecnikè S.r.l. ("Tecnikè").

The 3 companies will contribute with a team of 120 specialized resources to Base Digitale, annual revenues of approximately Euro 15 million, with an Ebitda margin of over 20% and an EAT Margin of over 10%. Thanks to these acquisitions, the Group's strategy in the Business Services sector is accelerated, developing the offer of digital platforms and Enterprise Information Management solutions. The transactions are part of a phase of acceleration in the demand for digital transformation, which is increasingly pervasive in all the economic sectors.

IFM, based in Genoa and with a team of 80 resources, generates annual revenues of approximately Euro 9 million, an Ebitda of approximately Euro 2.0 million and a net profit of approximately Euro 0.7 million. As of December 31, 2020 the Net Financial Position was active for approximately Euro 0.6 million. IFM is a reference operator in the field of digital technologies, with a proprietary Contact Management platform, offered to customers in cloud and pay per use and integrated with artificial intelligence solutions. The company has a strong specialization in the telecommunications, finance and outsourcing.

Digital Storm, based in Milan and with a team of approximately 25 resources, generates annual revenues of approximately Euro 4.2 million, an Ebitda of approximately Euro 1.3 million and a net profit of approximately Euro 0.9 million. As of December 31, 2020 the Net Financial Position was active for approximately Eu 0.2 million. Digital Storm specializes in digitalization solutions for document management, business information and electronic invoicing, including Document Process Management and Enterprise Information Management, integrating Abbyy OCR and CCM (Estream/StreamServe) OpenText technologies. The company is specialized in the finance and utilities segments.

Tecnikè, based in Arezzo and with a team of 15 resources, generates annual revenues of approximately Euro 1 million, an Ebitda of approximately Euro 0.2 million and a net profit of approximately Euro 0.1 million. As of December 31, 2020 the net financial position was essentially zero. The company is active in the development of digital platforms on the Cloud platform for the fintech and insurtech sector.

In support of this important step that involves the industrial development of the Business Services sector, Sesa has subscribed a capital increase of approximately Eu 6 million, increasing its shareholding in Base Digitale from approximately 60% to 71%.

The transactions were made on the basis of prices in line with the reference EV/Ebitda (5x) ratio generally applied by Sesa Group and with the long-term involvement of key figures, who will maintain minority stakes and top management roles; among these, in particular, the founder Emilio Barlocco and the management team led by CEO Marco Pezzini for IFM, the founding partners of Digital Storm Valerio Lusiani and Giovanni

SeSa S.p.A. headquarters in Empoli (Florence), Via della Piovola 138, Share Capital Euro 37,126,927.50 f.p.,

VAT number, Fiscal and number on the Florence Company Register 07116910964

Ph. Number: 00 39 0571 997444; website www.sesa.it

Politi and that of Tecnikè Giuliano Piergentili. The key people will have sustainable long-term growth mutual goals, which have always distinguished the industrial strategy of Sesa Group, as well as its M&A policy.

"In the pandemic year we invested a lot, channelling Base Digitale towards the creation of digital platforms that are increasingly functional for the technological evolution of the customers, sharing the skills with Sesa Group. Base Digitale targets annual revenues of approximately Eu 70 million on April 30, 2022, but especially human capital growth, with 450 human resources in the development of advanced digital platforms, including 120 new entries from the recent acquisitions. We are pleased to welcome, among others, the key people Emilio Barlocco, Marco Pezzini, Valerio Lusiani, Giovanni Politi and Giuliano Piergentili, who will contribute to our long-term sustainable growth and value creation goals", stated Leonardo Bassilichi, Chairman and CEO of Base Digitale SpA.

"Sesa Group continues its investment strategy in skills and technological innovation with the strengthening of our Business Services sector and the entry of new resources specialized in the development of digital platforms, exceeding the threshold of 3,500 employees. Thanks to the acceleration of the M&A concluded since February 2020, we further expand the Group's perimeter with additional annual revenues of approximately Eu 130 million, an Ebitda margin of over 10% and approximately 1,000 specialized human resources. We will continue to use the external growth leverage, through the identification of long-term business initiatives in order to accelerate our sustainable development path for the benefit of all Stakeholders and in support of the growing need for digitization of our customers", stated Alessandro Fabbroni, CEO of Sesa.

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Sesa S.p.A., based in Empoli (FI), is reference player in Italy in technological innovation solutions and IT and digital services for business segment. The Sesa Group operates on the whole national territory with presence over some European countries including Germany, Spain, Switzerland, with consolidated revenues of Euro 1,776 million, an Ebitda of Euro 94.5 million, a consolidated net profit after tax of Euro 42.2 million with over 2,500 employees (Financial Year data as of April 30, 2020).

The Group has the mission of offering technological innovation solutions and Digital Transformation services to companies and organizations. Thanks to the skills and specializations of its human resources and the solutions developed, Sesa Group operates in sectors such as Security, Collaboration, Cloud, Digital Process, ERP & Vertical Solutions, Customer Experience to support digital transformation of partners and customers.

The Sesa Group operates through three main business sectors:

• the VAD (Value Added Distribution) Sector with Revenues of Euro 1.45 billion and approximately 400 human resources;
• the SSI (Software and System Integration) Sector with revenues of approximately Euro 400 million and over 1,800 employees;
• the BS (Business Services) Sector with revenues of approximately Euro 50 million and approximately 300 employees, consolidated since March 2020.
  The Corporate Sector manages Group operating and financial platform as well as the Strategic Governance with revenues of approximately Euro 20 million and 180 human resources.
  The Sesa Group pursues a sustainable development policy for the benefit of its Stakeholders and over 2011-2020 period has achieved a track record of continuous growth in employment, revenues (CAGR revenues 2011-2020 +10.1%) and profitability (CAGR Ebitda 2011 -2020 + 11.9%, CAGR EAT Adjusted 2011-2020 +15.2%). Sesa S.p.A. is listed on the STAR segment of Borsa Italiana MTA Market (ISIN Code: IT0004729759).

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SeSa S.p.A. headquarters in Empoli (Florence), Via della Piovola 138, Share Capital Euro 37,126,927.50 f.p., VAT number, Fiscal and number on the Florence Company Register 07116910964

Ph. Number: 00 39 0571 997444; website www.sesa.it