wiit takes your business above the clouds - wiit.cloud...this presentation is not for distribution...

WIIT TAKES YOUR BUSINESSABOVE THE CLOUDS

Corporate PresentationMilan, May 2020

Company Presentation | May 2020 2

This document has been prepared by Wiit S.p.A. (the “Company”) for information and discussion purposes only, it contains only summary information and, therefore, it is preliminary in nature. Furthermore it has

been drafted without claiming to be exhaustive.

This presentation (“Presentation”) is confidential and, as such, has not been prepared with a view to public disclosure and, except with the prior written consent of the Company, it cannot be used by the

recipient for any purpose nor can it be disclosed, copied, recorded, transmitted, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose.

Therefore, the recipient undertakes vis-à-vis the Company (i) to keep secret any information of whatever nature relating to the Company and its affiliates including, without limitation, the fact that the

information has been provided (“Information”), (ii) not to disclose any Information to anyone, (iii) not to make or allow any public announcements or communications concerning the Information and (iv) to use

reasonable endeavors to ensure that Information are protected against unauthorized access.

This document is not an advertisement and in no way constitutes a proposal to execute a contract, an offer or invitation to purchase, subscribe or sell for any securities and neither it or any part of it shall form

the basis of or be relied upon in connection with any contract or commitment or investments decision whatsoever. The Company has not prepared and will not prepare any prospectus for the purpose of the

initial public offering of securities. Any decision to purchase, subscribe or sell for securities will have to be made independently of this Presentation. Therefore, nothing in this Presentation shall create any

binding obligation or liability on the Company and its affiliates and any of their advisors or representatives.

This Presentation does not constitute an offer to the public in Italy of financial products, as defined under article 1, paragraph 1, letter (t) of legislative decree no. 58 of 24 February 1998, as amended.

This Presentation is not for distribution in, nor does it constitute an offer of securities for sale in the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful, (as

such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”). Neither this Presentation nor any copy of it may be taken or transmitted into the United

States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person. Any failure to comply with this restriction may

constitute a violation of United States securities laws.

No representation or warranty, express or implied, is or will be given by the Company as to the accuracy, completeness or fairness of any information contained in these materials and, so far as is permitted by

law and except in the case of fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for errors, omissions or misstatements, negligent or

otherwise, relating thereto. In particular, but without limitation, no representation or warranty, express or implied, is or will be given as to the achievement or reasonableness of, and no reliance may be placed

for any purpose on the accuracy or completeness of, any estimates, targets, projections or forecasts and nothing in these materials should be relied upon as a promise or representation as to the future.

The information and opinions contained in this document are provided as at the date hereof and are subject to change without notice. The recipient will be solely responsible for conducting its own

assessment of the information set out in the Presentation. Neither the Company and its affiliates, nor any of their advisors or representatives shall be obliged to furnish or to update any information or to notify or

to correct any inaccuracies in any information. Neither the Company and its affiliates, nor any of their advisors or representatives shall have any liability to the recipient or to any of its representatives as a result

of the use of or reliance upon the information contained in this document.

Certain information contained in this Presentation may contain forward-looking statements which involve risks and uncertainties and are subject to change. In some cases, these forward-looking statements

can be identified by the use of words such as “believe”, “anticipate”, “estimate”, “target”, “potential”, “expect”, “intend”, “predict”, “project”, “could”, “should”, “may”, “will”, “plan”, “aim”, “seek” and

similar expressions. The forecasts and forward-looking statements included in this document are necessarily based upon a number of assumptions and estimates that are inherently subject to significant

business, operational, economic and competitive uncertainties and contingencies as well as assumptions with respect to future business decisions that are subject to change. By their nature, forward-looking

statements involve known and unknown risks and uncertainties, because they relate to events, and depend on circumstances, that may or may not occur in the future. Furthermore, actual results may differ

materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside of the Company’s control and cannot be estimated in advance, such

as the future economic environment and the actions of competitors and others involved on the market. These forward-looking statements speak only as at the date of this Presentation. The Company

cautions you that forward looking-statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may

differ materially from those made in or suggested by the forward-looking statements contained in this Presentation. In addition, even if the Company’s financial position, business strategy, plans and objectives

of management for future operations are consistent with the forward-looking statements contained in this Presentation, those results or developments may not be indicative of results or developments in future

periods. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s

expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

By accepting this Presentation, you acknowledge and agree to be bound by the foregoing terms, conditions, limitations and restrictions.

Disclaimer

Overview


The Premium Cloud for

Business Critical

Applications


Highlights

+70 countries onlinein 4 regions

2 Datacenter1 DC Tier IV

1996 establishedsince 2007 focused on Cloud

70 top clients+390 midsize clients

11 branchesof which 2 abroad

100% Green Energysince 2016 for datacenter and Wiit offices

6 successful acquisitionssince 2007

2017 listed on the Stock Market since 2019 in the Star segment

TIERIV

1996


IaaS ProvidersTelco, Amazon, Msft Azure, Aruba, Claranet, Plus Server

Infrastructure as a ServiceDatacenter, infrastructure tech, network

Platform as a Service• Managed services, DR/BC,

Cybersecurity

• Application Platform availability

Software as a ServiceApplication software Customer

Or

System Integrators

WiitTechnology Layer (Tier IV +

Tech Assets)

WiitDigital Process Applications

WiitApplication platform

availability

WiitManaged Services, Cybersec, DR/BC

Wiit Cloud Platform Offering

Standard Public Cloud Infrastructure as a Service only

Premium Hybrid Cloud

for Critical AppsPaaS and Saas

WIIT Peers

VirtustreamSecure24AttendaTricore SolutionsSymmetryOxya


+28% Revenue

+21%Cloud Market

+49% EbitdaAdjusted

+41%Ebit

Adjusted

WIIT GROUP

CAGR 2016-2019Growth Comparison


Leading operational excellence

and Cloud trend to achieve a sharp Growth

EBITDA Adj.* (M€) and MARGIN %

* EBITDA adjusted excluding the Figurative cost of Performance Shares,non-recurring costs incurred for the STAR segment listing and M&A ofapprox. Euro 1.0mln IPO costs

3.84.7

8.5

10.4

13.2

-1,0

1,0

3,0

5,0

7,0

9,0

11,0

13,0

15,0

2015A 2016A 2017A 2018A 2019A

41.3%

25.2%

38.9%

30.6%

43.3%

12.715.5

19.6

25.2

33.9

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

2015A 2016A 2017A 2018A 2019A

SALES (€mn)


Revenues

breakdown

Q1-2020

87% Wiit

78% Group

Recurring

13% Wiit

22% Group

One Off


Stock price last 12 months

+126.9%

+44.2%

+28.2%

-3.0%

-16.7%

-3.3%

-16.2%

Coronavirus period

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

160%

mag-19 giu-19 lug-19 ago-19 set-19 ott-19 nov-19 dic-19 gen-20 feb-20 mar-20 apr-20 mag-20

WIIT

FTSE STAR

CAC 40

DAX 30

FTSE100

NASDAQ100

BVP EC

WIIT.MI


Share growth

driven by

undervalued

multiples and

strong

business

performance

WIIT Market CapMay 22, 2020 286 M€

BVP Cloud index

EV/ Rev 2020 multiple 8.6 x

5.16 xWIIT EV/Rev multipleBloomberg estimates 2020

WIIT 90 days averagedaily volumes

3,000 shares/dd


Corporate

Governance

BOARD OF DIRECTORS

Chairman & COO Riccardo Mazzanti

Chief Executive Officer Alessandro Cozzi

Executive Director Enrico Rampin

Executive Director Francesco Baroncelli

Director Amelia Bianchi

Independent Director Aldo Napoli 1

Independent Director Dario Albarello 1,2

Independent Director Riccardo Sciutto 1,2

Independent Director Annamaria di Ruscio 2

BOARD OF STATUTORY AUDITORS

Chairman of the Board of Statutory Auditors Luca Valdameri

Statutory Auditor Paolo Ripamonti

Statutory Auditor Nathalie Brazzelli

SUPERVISORY BODY

Chairman of the Supervisory Body Dario Albarello

INDEPENDENT AUDIT FIRM Deloitte & Touche S.p.A.(1)

(2)

Member of Related Parties and Risks Committee

Member of Remuneration Committee


ShareholdersStructure

May 2020

No. Shares 2,652,066

Free Float

33.18%

Own Shares

4.66%

Wiit Fin Srl

62.16%

WIIT at a glance


WHY WIITWe strongly believe in technology as a turning

point for a fast and sustainable growth of

worldwide economy.

The IV industrial revolution can only be achieved through the

overcoming of the outdated technological models that do not allow efficiency, safety, scalability, performance.


ENABLE THE DIGITAL SHIFTWe support clients in their transformation from a

traditional On-Premise IT to a Premium Cloud model for

Business Critical Applications.

We are focused and we are investing on the continuous development of the

premium Cloud provider foundations: people, technologies, processes to guarantee the highest SLAs in the Cloud market.


Worldwide Cloud Growth 2018-2022

7.47%

14.27%15.77%16.08%

19.49%

25.89%

0%

5%

10%

15%

20%

25%

30%

Cloud Business

Process Services

(BPaaS)

Cloud

Management and

Security Services

Cloud Application

Services (SaaS)

Total MarketCloud Application

Infrastructure

Services (PaaS)

Cloud System

Infrastructure

Services (IaaS)

CAGR by Cloud Service Category, 2018-2022

Worldwide Public Cloud Services Revenue Forecast (B$)

Source: Gartner (Apr 2019)

$54 $50 $47 $44 $42

$58 $48

$40 $32 $26

$151

$133

$116

$100 $86

$18

$16

$14

$12

$11

$74

$61

$50

$40

$32

$-

$50

$100

$150

$200

$250

$300

$350

$400

20222021202020192018

Cloud System

Infrastructure

Services (IaaS)

Cloud

Management and

Security Services

Cloud Application

Services (SaaS)

Cloud Application

Infrastructure

Services (PaaS)

Cloud Business

Process Services

(BPaaS)

Source: Gartner Worldwide Public Cloud Service Revenue Forecast

Growth TrendsIaaS and PaaS growth will continue with the

highest CAGR rate in the Cloud Arena

Revenue TrendsIaaS + PaaS still represents 40% of the overall

Cloud market


Source: Netconsulting Cube 2020

Italian Cloud between past and future

1.4151.116

877

1.348

1.094

872

697

621

553

0 €

500 €

1.000 €

1.500 €

2.000 €

2.500 €

3.000 €

3.500 €

4.000 €

4.500 €

202020192018

Public Cloud Hybrid Cloud Virtual Private Cloud

2,302

2,830

3,460

+12.2%

+25.5%

+27.3%+26.8%

+23.3%

+12.3%+23%

+22.3%Market trendCloud gr owth will stay strong due to the boost of new digital areas (i.e. Analytics, Iot, AI etc.) and due to the adoption of Cloud for Business Critical apps.

Virtual Private is growing 12.3%Hybrid is growing 24.4%


Traditional DC

Private Cloud

Public Cloud

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020 2021 2022 2023

Traditional DC Private Cloud Public Cloud

Worldwide Cloud IT infrastructure Market Forecast by

Deployment Type, 2017-2023 (shares base on Value)

Cloud shift still

ongoing


6%

4%

9%

12%

19%

16%

36%

34%

30%

34%

2018

2019

No Plans Watcher Beginner Intermediate Advanced

Cloud

maturity

Enterprise

Source: Rightscale 2019 State of the Cloud Report from Flexera – 786 respondents


3%

3%

10%

9%

17%

58%

84%

Enterprise Cloud Strategy% of enterprise respondents

Hybrid Cloud

Multiple public

Multi-cloudSingle public

Single private

No plans

Multiple private

Cloud

strategy

adoption

2019Source: Rightscale 2019 State of the Cloud Report from Flexera – 786 respondents


5%

3%

4%

3%

9%

10%

10%

9%

21%

17%

51%

58%

2018

2019

No Plans Single Private Single Public Multiple Private Multiple Public Hybrid

Enterprise

Multi-Cloud

Strategy

YoYSource: Rightscale 2019 State of the Cloud Report from Flexera – 786 respondents


3%69%

Hybrid22%

Public Cloud

Only

Private Cloud

Only

91%

use public cloud72%

use private cloud

94%

Cloud

AdoptionSource: Rightscale 2019 State of the Cloud Report from Flexera – 786 respondents


6%

9%

17%

28%

31%

Hosted Private Cloud

On-Premise private Cloud

Public and Private are equal priority

Hybrid Cloud

Public Cloud

Top Cloud

Priorities

for

EnterprisesSource: Rightscale 2019 State of the Cloud Report from Flexera – 786 respondents


Growth and Workloads

in Cloud

Source: Rightscale 2019 State of the Cloud Report from Flexera – 786 respondents

24%

8%

Public Cloud Private Cloud

Growth in Cloud use

38%

41%

21%

Workloads

in Cloud

Private Cloud

Public CloudNon Cloud


Why

complementary?

PRIVATE CLOUD PUBLIC CLOUD

Single or multiple clients Multiple clients

On-premises or off-premises Off-premises

Managed Services No Managed Services

Fully Customizable Limited Customizations

Guaranteed SLA Target SLA

Highest Security standards (up to Tier IV) Low Security standards (No Tier IV)

Fully customizable Tech Performances Standard Tech Performances

Shared or fully private network Shared network


Needs: multiple users, less confidential information, local data compliance, geographical localization

Non Critical Applications

Needs: high and guaranteed service levels, business continuity, information security, personalization, integration, scalability, flexibility

Critical Applications (SAP-ERP, CRM, EPM, etc.) core platforms and infrastructures

Managed Services

Business Continuity

Wiit Delivery Platform

Business

App

Non Critical

-

+Critical

Customer Private Cloud

Hosted Private Cloud Public Cloud

AWS

The new trend for Critical Corporate Apps


Being global and

digital is imperative.

Being global means

global processes

governance.

Governance and

digital mean tech

performance,

data security and

process reliability.

a. No more CAPEX in no core

investments

b. Scalability and flexibility

c. Competences and experience

Top 3 business fault causes

#1 Datacenter technology level

#2 Cyber security

#3 Human Error

BUSINESS

RISKS

BUSINESS

OPPORTUNITIES

Why companies move to Cloud


TOP 3Reasons to choose your Critical App

Cloud provider

#1 References

#2 Migration experiences

#3 Assets/Competences/Certifications

TOP 3Reasons to change your Critical

App Cloud provider

#1 Service quality

#2 Provider Financial health

#3 Price

Primary Cloud

entry barriers to

enter the Critical

App Cloud

Business-stop risk due

to migration

is the primary

Client exit barrier

Competition in Business Critical Cloud

Entry/Exit barriers


70%

Top clients

with DR/BC

90%

Top clients

run ERP suites

80%

Top clients

run SAP

70Top

clients

+390Mid

clients

70connected

countries

2global

branches

Milan HQ

Florence

Rome

Castelfranco Veneto

Vicenza

italian

branches92

enterprise

datacenter

Geographical coverage of clients connected to our datacenters

CarpiCuneo

Turin


WIIT Strategic Assets

Wiit deploys two dedicated Enterprise

Class Data-Centers in Italy

Milan: Primary Data Center, certified TIER

4 Constructed Facility, where the most

complex and critical ERP infrastructures

are hosted and managed

Castelfranco Veneto (TV): the data

center that enables Business Continuity

services for Milan Tier IV DC

The level of use of the 2 Data-Centers is

only 35% of total capacity

(*) Source: Uptime Institute Website – Tier Certification of Constructed Facility – March 2018

TIERDatacenter

Class

Site

infrastructure

Definition

Components

IT capacity

to support

load

Distribution

Path

Maintenance w/o service downtime

Fault tolerant

= w/o manual

intervention

Compart

mentation = all

components

are separated

and duplicated

Continuous

Cooling

Availability

year

average

4Enterprise

Corporations

Fault tolerant2N+1

Fully

Redundant

Double

Active-

Active

99,995%

3Large Business

Concurrently

maintainable

N+1

Fault

Tolerant

One Active

One

Standby

99,982%

2Medium Size

Business

Redundant N+1 single 99,75%

1Small Business

Basic N single 99,67%

Tier IV datacenter for business critical applications


Key Success Factors

Private Wiit Private Public

Hybrid Cloud Platform

A fully integrated Hybrid

Cloud supply chain for governance and workloads management in Clouds at worldwidelevel

100%Hybrid

SAP Outsourcing Services

The only provider in the world with all the 6 certification classes on SAP Outsourcing Operations

6/6Certs

Eco-Sustainability

Since 2016 datacenter and offices power completely comes from renewables sources

100%Green

Cyber Security Platform

Average increase of Wiit Security Index in our clients after CS platform adoption

+34%Coverage

Tier IV Availability

Resiliency level of

Datacenter still is the first cause of potentialbusiness fault risk

99.995%Availability

Data Resilience

All the critical production systems are hosted in EMC VMAX storage that guarantees the maximum resiliency currently available

99.9999%Resilience

SaaS

PaaS

IaaSIaaS

Help Desk

Dedicated and shared servers

Backup & Data Storage

Data Center

SAP Application Support

SAP system Mgmt& other APP

Database Management

SOC & Cyber Security

System Mgmt

Digital Process Platform

Wiit Cloud Positioning


Sustainability Beyond Cloud: WIIT presented its first Sustainability Report on 2019

WIIT4DATA

We guarantee the

very best levels of

security through

certified processes

and infrastructures:

Tier IV certified data

center; 99.995%

average availability

of storage in the

Milan data center,

zero raids and

security breaches;

over 80 products

and services for

cybersecurity

WIIT4CLIMATE

• 117gigawatts a

year saved by

customers thanks

to the Wiit cloud

• 100% clean

electricity to power

their data centers

• 720+ kg of CO2 not

released into the

atmosphere thanks

to the

consumption of

energy from

renewable sources

• 100 trees adopted

with the "Let's plant

it" program

WIIT4INNOVATION

Innovation at the

core of Wiit’s

business model, to

support the digital

transformation of

businesses by

supplying them with

the technologies

and qualified

personnel needed

to establish new

business models

WIIT4PEOPLE

Tailored career

paths via our in-

house University:

• 167 people,

100% hired on

permanent

contracts

• over 1110 hours

of training

provided

The focus of the Reportis to promote the

objectives and targets

achieved by the

Company over the

years, while

demonstrating that

sustainability already represents a significant

part of WIIT corporate

identity

The report is based on

4 main pillars:


High standing Client Base

(*) Source Clients Financial Report 2018 and Management account – data not audited

TOP 10 CLIENTS

76% OVERSEAS TURNOVER(*)

Fashion

34%

Oil & Gas

13%Industrial Machinery

11%

Process

Manufacturing

11%

Discrete

Manufacturing

8%

Professional

Services

7%

Aerospace &

Defence

6%

Public

5%

Retail

TOP 10’s CLIENT

REVENUE BY

SECTOR(Informative Prospect 2018)


• 5 years average contract period

• 75.4 €M Backlog. 2.2 times 2019A sales

• High penalties for early termination

BACKLOG AS AT 1st JAN 2019 (€mn)

25.2

48.7

0,0

10,0

20,0

30,0

40,0

50,0

60,0

SALES 2018 BACKLOG

1.9 x

Granting a high Visibility of Business

BACKLOG AS AT 1st JAN 2020 (€mn)

33.9

75.4

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

SALES 2019 BACKLOG

2.2 x


3.8

7.08.9

12.3

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

2016A 2017A 2018A 2019A

High Cash Flow Growth: +38.2% in FY 2019

GROSS CASH FLOW HISTORY (M€)Big cash generation potential

• Facilities usage at 40%

• CAPEX

• Maintenance capextech update + R&D (approx.

€1.5mn/yr avg in 2016-2019)

• Development capexnew clients (approx. 20% of TC in

contract Y1)

• Modest NWC needs

WHAT NEXT ?


Main drivers for

FUTURE GROWTH

1

4

3

2

Leadership in Italy on

Business Critical AppsContinue organic growth on SAP and

other business critical apps

Expansion in EuropePriority on France & Germany for market

potential and country cloud-readiness for

critical apps

Italian market consolidationContinue cloud market consolidation in

Italy achieving upselling of Wiit services in a

new customer set and industrial synergies

Service portfolio extension

on Top Tech trendsServices expansion to IoT, AI, CX


M&A Journey

VisiantAcquisition of Private Cloud datacenters (2) of Visiant with a long term partnership. Strong

synergies achieved (DC shutdown+migration in Wiit facilities)

AdelantePresence in Tuscany (Luxurydistrict). 70% potential synergies

achieved. Upselling Wiit Bizcritical services on existingcustomers in progress. Expansion of service portfolio

MatikaPresence in Veneto (Discrete/ProcessM. district). 500 k€ potential synergies. Very good upselling potential on

Matika customer base and expansionof service portfolio

20192015 2018

Etæria & ÆderaStrong presence in Piedmontand Emilia-Romagna. High quality client portfolio. Proprietary technologicalplatform that integrates the technological document asset already owned by Wiit

2020


External Growth

1. Acquisitions in Italy to increase Wiit’smarket share and gain synergies (example: data centres)

M&A STRATEGY

Italy

1. Strategic acquisitions to enter more effectively in foreignmarkets leveraging on:

• a local established brand

• a native salesforce with relationships with local clients, knowledge of local market and datacenter in the country

2. Cost savings mainly achievable thanks to the centralization ofoperations in Italy. Two examples:

Europe (FR, DE)

I. Cloud players with a business modelcomparable to Wiit and multiannualcontracts schemes

lower (same business model)

cost synergies

II. IT players which can be consideredpart of the current Wiit Value Chain(for instance Datacenter, Cloud IaaS),have a client base suitable to an up-selling strategy and possiblymultiannual contracts

mediumcost synergies + revenue synergies

(up-selling)

Profile Integration risksSynergies


IAAS CLOUD SERVICESFROM AN

AVG. CLIENT SIZE

50

7,5

15%

0%

20%

40%

60%

0

20

40

60

Revenue Ebitda Ebitda %

K€/yr

Leverage Wiit Cloud

model to scale up

financials of

acquired Co.

PAAS CLOUDTO AN

AVG. CLIENT SIZE

350

157,5

45%

0%

10%

20%

30%

40%

50%

60%

0

50

100

150

200

250

300

350

400

Revenue Ebitda Ebitda %

K€/yr

IaaS Provider

Data CenterData center, infrastructure

tech, network

Platform• Managed services,

DR/BC, Cybersecurity

• Application Platform

availability

ApplicationSoftware license as a

Service

WiitTechnology Layer

(Tier IV + Tech Assets)

WiitApplication platform

availability

WiitManaged Services, Cybersec, DR/BC

Financial boost in target companiesWiit average

top 20’s client size

900 K€/yr

WiitDigital ProcessApplications


Smart WorkingImplementation

Smart working implementation

since February 24th to ensure the

safety of all employees.

98% of employees in smart

working, minimum presidium only

at datacenter

98%Employees

Long TermContracts

Considering the recurring nature of WIIT

revenues, based on long term contracts, no

significant impacts related to COVID-19 are

expected on 2020 results at the moment, as

confirmed by the Q1 2020 performance.

Impact on new clients acquisition could

occur if the contingent situation continues

beyond the first half 2020;

> 3yrs

Strong interest from new and

existing clients in WIIT’s “Smart

Working” and “Cyber Security”

services in March and April 2020;

SMaaS + CSaaS HealthMonitoring

Constant monitoring of

clients creditworthiness.

COVID-19

Update:

EFFECTS ON

BUSINESS


Solutions to face COVID-19 emergency

Centralization of voice communication

Messaging and document sharing

Internal & External Security

Backup and management of company data

WIIT SMARTWORKING PLATFORM

@homeBYOD

w/ portabledevices

Mobility In office@homew/ company

devices

ENDPOINT SECURITY

Mobile VPNLandline/mobile Internet

Customer

Private Cloud

Hosted

Private CloudPublic Cloud

AWS

Departmental apps

Production Line apps

Edge apps

Business Critical apps

Critical Data

Centralized Corporate apps

Public Cloud Native apps

Collaboration SaaS

We enable the remote full access to

the most critical apps currently On

Premise

Show your W IIt!

Promo campaign to support companies in

their cloud migration

#andràtuttobene

The initiative to reduce migration costs to one of the cloud

platforms dedicated to critical applications during the

Coronovirus emergency period


Fund Raising “Un Sacco di grazie!”for COVID-19 emergency

WIIT started a fundraising

for the "Luigi Sacco“

Hospital donating 100K€

and the first month of

Cloud contracts signed

in April.

#ilcuoredelcloud Donate!

https://www.retedeldono.it/it/wiit/il-cuore-del-cloud

Financials


Financial

Highlights

vs2019

2018

+27% Ebit Adjusted6.8 M€ vs 5.3 M€ in 2018

+74% Net Profit6.7 M€ vs 3.8 M€ in 2018

25.5 M€ Net debt**4.4 M€ at Dec 31, 2018

Revenues33.9 M€ vs 25.2 M€ in 2018+34%

+27% Ebitda Adjusted*13.2 M€ vs 10.4 M€ in 2018

(*) EBITDA adjusted: concerns the non-recurring costs incurred for the STAR segment listing,the M&A costs and the PPA impact for a total amount of approx. 1.6 M€.

(**) Including IFRS16 effect of M€ 5.5 in 2019 and M€ 1.1 in 2018. The 2019 amount alsoincludes the earn out for a total amount of M€ 7,9 related to Adelante and Matika of which 6M€ payable with treasury shares.


Financial

Highlights

vsQ1-20

Q1-19

+46.7% Ebit Adjusted2.2 M€ vs 1.5 M€ in Q1 2019

1.6 M€ Net Profit Adjusted1.6 M€ vs 2.3 M€ in Q1 2019

35.5 M€ Net debt25.5 M€ at Dec 31, 2019

Adjusted Revenues11.2 M€ vs 7.5 M€ in Q1 2019+49.8%

+41.8% Ebitda Adjusted4.1 M€ vs 2.9 M€ in Q1 2019


Financial

Highlights

vsQ1-20

Q1-19

• Reported revenues +55,2% at 11.6 M€, including the

positive impact of tax credit (0.4 M€);

• Constantly growing market;

• Positive organic revenues growth and good

contribution from Matika and Etaeria;

• Upselling on existing clients.

Adjusted Revenues11.2 M€ vs 7.5 M€ in Q1 2019+49.8%


Financial

Highlights

vsQ1-20

Q1-19

Ebitda Adjusted4.1 M€ vs 2.9 M€ in Q1 2019+41.8%

• Concentration on Cloud services, reduced low value

added product revenue, optimised processes and

operating services organization.

• Improvement in margins:

– WIIT margin slightly decreased to 42.3% due to the

allocation on WIIT of some Etaeria clients in order to ease

the upselling. Excluding this strategic allocation, WIIT

margin was 46,4% higher than 2019 margin at 46%

– Adelante from 17.7% in 2019 to 21.9% Q1 2020

– Matika from 25.6% 2019 to 31.1% Q1 2020

– Etaeria margin at 18,1% in Q1 2020

• Adjustments concern the impact of tax credit and M€

0.1 of M&A costs.


Financial

Highlights

vsQ1-20

Q1-19

1.6 M€ Net Profit Adjusted1.6 M€ vs 2.3 M€ in Q1 2019

• Q1 2019 Net result benefited from the impact of Patent Box for approx. 1 M€;

• Reported Net profit of 1.7 M€ reflects the positive

impact of tax credit of 0.4 M€ and the impact of M&A

costs;

• Agreement on the "Patent Box" extended for 2020-

2025 tax years


35.4 M€Net debt25.5 M€ at Dec 31, 2019

• IFRS16 effect of 6 M€ at March 2020 (5.5 M€ at Dec

2019);

• Impact of the acquisition and related earn out value

of Etaeria and Aedera business of 13.0 M€;

• Strong operating cash flow generation of 3 M€;

• CAPEX expenditure approx. 2.8 M€ mainly related to

new orders;

• The treasury shares value (approx. 10.8 M€ at mark to

market value at March 31, 2020) is not included in the

cash accounting.

Financial

Highlights

vsQ12020

Q12019


Balance Sheet: Q1 2020 Results

• Fixed assets mainly include the two Wiit’s

datacenters (approx. 40% capacity) –

amortization in 5 years

• Goodwill refers to the merger of Sevenlab

S.r.l. into Wiit in 2014 and acquisition of a

division of Visiant Technologies in 2015,

Adelante Group, Foster in 2018, Matika in

2019 and Etaeria and Aedera in 2020.

Goodwill includes also the overall potential

future earn-outs as per achieved financial

target plan.

• Intangible Assets YTD Q1_20: 6.2 millions

IFRS16

IFRS Form (€ 000) 2018 2019 Q1_20

Intangible Assets 4.050 13.342 14.929

Intangible Assets - Goodwill 9.736 17.605 28.156

Property plant and equipment 13.823 19.063 19.088

Tax non current liabilities 685 727 666

Other Tangible Assets 0 0 0

Investments in associates 0 61 61

Total non-current assets 28.362 50.798 62.901

Inventories 0 83 271

Trade and other receivables 4.699 6.443 6.355

Intercompany receivables 461 36 116

Advance Tax 0 0 0

Other liquid assets 1.734 269 258

Total current assets 6.895 6.830 7.000

Tax current liabilities 669 715 734

Trade and other payables 3.802 4.479 5.323

Payables vs related companies 0 0 35

Other payables and current liabilities 2.056 3.291 3.195

Total current liabilities 6.528 8.528 9.286

Net Working Capital 367 (1.698) (2.286)

Other payables and non-current liabilities 1.340 860 750

Employee benefits liabilities 1.259 1.984 2.310

Provisions for deferred tax liabilities 214 2.872 2.844

Total non-current liabilities 2.813 5.716 5.904

NET INVESTED CAPITAL 25.917 43.384 54.711

Equity 22.243 20.661 22.838

Net Financial Debt (Cash) 8.230 25.489 25.489

Net Financial Debt (Cash) Excluding impact of IFRS16 20.019 20.019

Cash and cash equivalents at year-end 17.930 11.836 15.795


• Big potential for a margin expansion thanks

to a scalable platform with fixed costs

mainly

• Performance shares plan generates a

figurative cost ex IAS principles (tax

deductible)

• IPO cost: cost related to listing to MTA

process (Star Segment)

• M&A cost: cost related to due diligence for

Merger and Acquisition

• Tax benefits active from year 2016 on

• “Super-ammortamento”:140% overvaluation

of the 2017 investments in new assets

purchased or leased. Opportunity to benefit

of subsidy for investments in intangible

capital goods (software and IT systems)

• “Patent-Box”: benefit starting benefit

calculation from Y2015. Renewed the

benefits for the next 5 fiscal years

• “Tax Credit”: benefit for IPO costs

* EBITDA adjusted Q1_2020 - excluding non-recurring costs M&A of approx. 0,1mnl Euro and non-recurring

revenue for tax credit foe 0,4mln Euro

Income Statement: Q1 2020 Results

IFRS Form (€ 000) 2018 2019 Q1_19 Q1_20

NET SALES 25.237 33.911 7.474 11.195

Cost of products and service sold (excl. IPO costs) 10.121 14.175 3.278 4.722

Cost of employees (excl.Figurative cost Perf.Shares) 4.395 6.229 1.245 2.458

Other cost and charges 309 382 94 139

Variation of inventory 0 (66) 0 (175)

Total costs 14.826 20.719 4.616 7.143

EBITDA Adjusted 10.412 13.192 2.857 4.052

41,3% 38,9% 38,2% 36,2%

Amortisation, depreciation 5.108 6.903 1.376 2.022

Amortisation Purchase Price Allocation 511 (128)

Figurative cost of Performance Share 2016-2018 283 0 0 0

Other revenues (tax credit) (403)

IPO and M&A Costs 142 1.063 793 135

OPERATING PROFIT 4.878 5.226 689 2.299

OPERATING PROFIT Adjusted 5.303 6.800 1.482 2.158

21,0% 20,1% 19,8% 19,3%

Depreciation of investments in associates 0 (7) 0 0

Financial income 7 252 129 0

Financial costs (508) (439) (56) (148)

Exchange rate differences (90) (40) 0 (5)

RESULT BEFORE TAXES 4.287 4.992 761 2.146

Income taxes 791 (258) (848) 431

NET RESULT 3.496 5.250 1.610 1.715


4.7

8.510.4

13.2

16.218.5

00

02

04

06

08

10

12

14

16

18

20

2016A 2017A 2018A 2019A 2020E 2021E

42%

EBITDA Adj.* (M€) and MARGIN %SALES (M€)

(E) Average of Analysts Consensus for 2020-21 (source: Banca IMI, Intermonte SIM and Midcap LCM, May 2020)

30.6%

43.3%

1.8

4.2 4.9 5.2

8.4

10.6

00

02

04

06

08

10

12

2016A 2017A 2018A 2019A 2020E 2021E

EBIT (M€) and MARGIN %

0.9

3.1 3.5

5.36.6

8.5

00

01

02

03

04

05

06

07

08

09

2016A 2017A 2018A 2019A 2020E 2021E

NET PROFIT (M€) and MARGIN %

11.6%

21.4%19.3%

5.9%

16%

13.9%

CAGR

FY16 - FY19 +41%

CAGR

FY16 - FY19 +42%

CAGR

FY16 - FY19 +81%

15.3%

18.1%

20.9%

15.6%

14.3%

16.7%

38.9%

34.8%

36.3%

Group Annual Economic Results 2016-2021E(Y20 and Y21 Estimate by Analysts Consensus)

15.319.6

25.2

33.9

46.550.8

00

10

20

30

40

50

60

2016A 2017A 2018A 2019A 2020E 2021E

CAGR

FY16 - FY19 +30%

19.5%

28.1%

28.6%

34.5%

37.2%9.2%

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