Wiit S p A : Report 2020

ANNUAL ACCOUNTS

2020

Directors' Report

Company:	Wiit S.p.A.
Registered office:	20121 - Milan, Via dei Mercanti No.12
Tax and VAT No.	01615150214
Share capital:	Euro 2,652,066.00 fully paid-in
Milan Companies Registration Office	No. 01615150214
R.E.A. No.	1654427
Number of shares	2,652,066

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Letter to the shareholders

Dear Shareholders,

results in 2020 were again in line with our ambitious expectations and those of the financial community. We are particularly satisfied as they not only once again confirm the Group's reliability and the strength of our strategy, but also our organisation's resilience in the face of extraordinary events such as the ongoing global pandemic.

Revenues amounted to Euro 52 million (Euro 34 million in 2019, +54.9%), driven by both organic growth in a constantly expanding cloud services market and the execution of our acquisition-led growth strategy.

In this latter regard, I recall with particular satisfaction - further to the acquisition of Etaeria Srl and of the Aedera Srl business unit at the beginning of 2020 - our first major European transaction with the acquisition of the German myLoc Management IT AG in Q4.

Consolidated Adjusted EBITDA was Euro 18.3 million (Euro 13.2 million in 2019, +38.8%), a 34.8% revenue margin, with Adjusted net profit of Euro 6.1 million, up 8.7% on Euro 5.6 million in 2019 (net of the "Patent Box" effect for Euro 1 million in 2019 referring to the 2015-2019cumulative benefit).

The pro-forma figures highlight our ability to execute an acquisition-led growth strategy and our focus on delivering industrial synergies through the gradual integration of the acquired companies. The "pro-forma"margin was thus driven even higher - from 36.6% in 2019 to 37.7% in 2020.

Despite the major uncertainties and concerns surrounding the social and economic repercussions of the COVID-19pandemic, WIIT's business model, centred on long-termorders and recurring revenues, has delivered results in line with budget and a significant increase on the previous year.

It is important to underline that organic growth has contributed considerably to these results, particularly thanks to the Group's focus on targetted promotional campaigns, mainly for Smart-Workingand Cyber Security services.

We are also proud of the fact that the COVID-19pandemic did not hinder the interweaving of Sustainability into the Group's operations that began in 2019 with the drawing up of our first Sustainability Report.

We published the Group ESG Policy in 2020, setting out our sustainability values and commitments and an ESG Governance model with ad hoc roles and responsibilities, while receiving our first ESG Risk Rating - a key tool to underscore the commitment of the Group to the Sustainable Finance community.

2020 ANNUAL ACCOUNTS - Directors' Report

In February 2021, together with a Group of outside stakeholders, we set out the Group's sustainability objectives to 2030, which demonstrate our contribution to achieving the United Nations' 2030 Agenda and its 17 Sustainable Development Goals. We are focusing on 18 objectives, organised into the 5 pillars of our sustainability strategy: We are the Cloud, Wiit4Data, Wiit4Climate, Wiit4Innovation and Wiit 4 People, which are covered in the latest edition of our Sustainability Report and highlight our commitment to adopting a business model which increasingly integrates Sustainability.

In concluding my term of office, I wish to finally thank with all my heart the many people who have contributed to the success of our company. Firstly, I wish to thank our founder Alessandro Cozzi, to whom I am grateful for choosing me so many years ago to help bring to fruition this ambitious entrepreneurial project, for the trust shown in me over the years, for his vision and for setting extremely challenging objectives, which have always driven me to give my very best. I wish to thank all my colleagues, who are truly extraordinary people who over the years have demonstrated extremely high levels of professionalism, a sense of responsibility, teamwork and levels of humanity, while seeing them grow has indeed given me a sense of immense satisfaction. I wish to thank our Customers, who continue to renew their trust in us, with an appreciation for our Services, our commitment, our Values, building with us close and long-term working relationships. I wish to thank all of our consultants, whose professionalism and availability is an invaluable support and ensures the non-stop improvement of the organisation as a whole. Finally, I wish to thank our financial partners - and more in particular - you our shareholders, who have believed in our project and in the quality of governance. I wish to assure you that management always listens to your suggestions and always keeps close to heart the commitments made to you.

I have great respect and confidence in the management team and I am sure that they will successfully lead our international expansion, achieving even more extraordinary results in the coming years and offering further opportunities and satisfaction to all stakeholders.

Yours Faithfully

The Chairman

(Riccardo Mazzanti)

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