DIGITAL360 Investor Presentation Milano, 02 Ottobre 2019 I. Company overview 2 II. Business Units 10 III. Strategy in Action 16 IV. Financials 18 1 Our history stems from the experience developed by Politecnico di Milano Professors in the area of Digital Transformation and Entrepreneurial Innovation. 22.5 M&A Growth Organic Growth 14.3 12.8 10.8 9.7 17.3 2.8 3.3 1.4 4.6 1.9 2000… 2011 2012 2013 2014 PF 2015 2016 2017 2018 Establishment of: DIGITAL360 is founded • ICT & Strategy Srl (holding) (Demand Generation) • Partners4Innovation Srl • Incorporation of ICT & (Advisory&Coaching) Strategy Srl and Partners4Innovation Srl 2 Our history stems from the experience developed by Politecnico di Milano Professors in the area of Digital Transformation and Entrepreneurial Innovation. 22.5 +13% M&A Growth organic growth Organic Growth 14.3 12.8 13.4 10.8 11.9 9.7 17.3 2.8 3.3 1.4 4.6 1.9 2000… 2011 2012 2013 2014 PF 2015 2016 2017 1H 20182018 1H 2019 Establishment of: DIGITAL360 is founded • ICT & Strategy Srl (holding) (Demand Generation) • Partners4Innovation Srl • Incorporation of ICT & (Advisory&Coaching) Strategy Srl and Partners4Innovation Srl 3 «Vision» and «Mission» VISION MISSION Digital Transformation and Entrepreneurial To help businesses and public bodies understand and Innovation - the engine for economic growth and for pursue their path of Digital Transformation and modernising businesses and public bodies Entrepreneurial Innovation 4 Business Model: The Matchmaking Platform Digital Innovation Digital solutions/ Digital Innovation Supply services market Demand TECH COMPANIES (over 30 bn euro in Italy) TECH BUYERS ICT Vendors Large Enterprises Telcos We are a multi-channel B2B platform Software Houses that aims to promote the convergence between SMEs System Integrators the Demand and Supply of Digital Solutions/Services (MATCHMAKING PLATFORM) Software and Hardware Resellers Micro Enterprises Demand Generation Cloud Providers We help the best suppliers of digital solutions/services Online Marketing build a reputation on the market and connect with new Independent Service Providers customers through innovative Marketing & Sales Services Professionals New Media Agencies Public Sector eCommerce Service Advisory & Coaching Authorities Providers Startups We help businesses and public bodies pursue their path of digital transformation and entrepreneurial innovation through the provision of […] […] innovative Advisory and Coaching services Over 90,000 Over 4 Million Tech Companies Tech Buyers 5 5 Our Business Units: Services, Assets and Core Competences Demand Generation Advisory&Coaching € € Business Unit 38% Business Unit 13.4 Customised Demand 62% Mln€ Customised Advisory Generation Services Services Demand Generation Advisory As-A-Service (Engine) 1H2019 As-A-Service Cultural Leadership & Core Competence in Digital Innovation Content Assets (Portals & Events) Technology Assets (Integrated Platform) 6 Our Business Units: our Community Demand Generation Advisory&Coaching Business Unit 38% Business Unit 13.4 Customised Demand 62% Mln€ Customised Advisory Generation Services Services Demand Generation Advisory As-A-Service 1H2019 As-A-Service The largest community in Italy of tech / digital users & buyers 53 online portals and newsletters 1.6 mln unique visitors per month 1st page on Google with more than 5,000 keywords in the Tech sector 1,900 published white papers until 2018, downloaded by 25,000 users in 2018 640 events and webinars with 75,000 registrations in 2018 >400k fans and followers on social media channels 124k profiled contacts in 2018 through events, webinars, white papers and contact center 7 Group Structure Demand Generation Advisory & Coaching Business Unit Business Unit SYNERGIES BETWEEN BUSINESS UNITS • Visibility and reputation for advisory and key people and lead generation • Professional content for Portals and quality speakers for Events 8 I. Company overview 2 II. Business Units: Demand Generation 10 III. Strategy in actions 16 IV. Financials 18 9 Demand Generation Customised services Our services Communication Events Lead Generation Storytelling Demand Roundtables & focus groups Profiling Content Marketing Generation Conventions, summits, webinars Business meetings Communication/Advertising plans Open Innovation Research Integrated Projects Surveys, focus groups Call4ideas Communication, events, lead Customer Insights, Market Hackathons generation, etc. Outlooks […] 10 Demand Generation 1H 2019 KPI Demand Generation As–A-Service: the Digital Marketing & Sales «Engine» ▪ Engine sold: 45 ▪ Average Price: 45k€ ▪ Annual (recurrent) value: 2.0M€ Digital360 Gated Content Marketing Network Contact Centre Automation Online portals and SEO optimised Content Gated content (white papers, webinars, Lead nurturing and marketing Qualifying leads with an internal Marketing and Social Media to intercept a events, etc.) to profile the audience and automation tools to identify, nurture contact centre to generate sales qualified audience of technology purchasing identify the most interested prospects and manage leads opportunities decision-makers The distinguishing factors ▪ End-to-end approach, facilitating the integrated management of communication, digital marketing and lead generation activities ▪ «As a service» approach, based on «shared» Specialist teams (Content, SEO, Social Media, Marketing Automation, and Communication Specialists), driving recurrent revenues ▪ Synergies between our unique technology and content assets (outbound) and those owned by the client (inbound) 11 I. Company overview 2 II. Business Units: Advisory&Coaching 13 III. Strategy in actions 16 IV. Financials 18 12 Advisory&Coaching Customised services Our practices Audit & Digital Government Agile IT Governance Cyber Security Digital Legal Compliance Demand Advisory Generation Services Smart Working Open Innovation Smart Operations Digital Marketing Healtcare Data Driven Sport Innovation Innovation Innovation […] 13 Advisory&Coaching 1H 2019 KPI Advisory&Coaching As-A-Service ▪ AAS Advisory subscriptions sold: 46 Original Methodologies and 1. Models (mainly DPO AAS) Engineering the ▪ Annual (recurrent) value: 2. know-how 1.3M€ Recurring 3. Revenues Go-to-market 4. Channel The strong links with the University and the customised projects enable the development […] of original methodologies (Smart Working, Digital DNA, By leveraging the engineering and Compliance Dimensions, systematisation of knowledge, An “As A Service” approach DigitalB2BTransformation, etc.) our original methodologies evolve designed to provide advisory into replicable “advisory services” services and support customers The Advisory team and its key on an ongoing basis, including people can enjoy a high level of through the provision of highly visibility on the portals and events specialised profiles and cloud offered by the Group, positioning platforms itself as an opinion leader and generating a steady stream of prospects 14 14 I. Company overview 2 II. Business Units 10 III. Strategy in Action 16 IV. Financials 18 15 Strategic Directions in 2019 1 Strategic focus on the development of “As-A-Service” packaged solutions, with recurrent revenues based on monthly fee: ▪ Digital Marketing & Sales Engine ▪ Advisory-As-A Service 2 M&A ▪ Integrating the acquired companies - ServicePro Srl and IQConsulting Srl (Effettodomino Srl is fully integrated and merged into ICT&Strategy, enabling a strong acceleration of the Digital Marketing and Sales Engine model) ▪ Scouting of innovative small companies and startups in DIGITAL360’s strategic areas (content marketing, marketing automation, AI, etc.), pursuing an “open innovation” strategy 3 Investments in technological platforms: business analytics, IA, CRM, marketing automation, apps, etc. 16 I. Company overview 2 II. Business Units 10 III. Strategy in Action 16 IV. Financials 18 17 Revenues and EBITDA Growth 22.5 Revenues (€Mln) CAGR revenues 2011-2018: +49% 14.3 +13% CAGR organic revenues 2011-2018: +22% 12.8 organic 17.3 10.8 growth 9.7 13.4 11.9 3.3 2.8 1.4 4.6 1.9 2011 2012 2013 2014 2015 2016 2017 1H 2018 2018 1H 2019 pro-forma EBITDA (€Mln) 2.6 1.6 1.3 1.4 1.1 1.5 1.5 0.3 0.4 0.2 2011 2012 2013 2014 2015 2016 2017 1H 2018 2018 1H 2019 pro-forma 18 18 Financials: Income statement Operating Results 30.6.18 30.6.19 D 19-18 Growth of both business areas in which the mln euro Group operates (+18% A&C, +10% DemGen) thanks to the new “Digital As-A-Service” offer Total Revenues 11,9 13,4 13% Due to a triple negative, temporary effect on margins: (i) a reduction in revenues deriving EBITDA 1,5 1,5 0% from more traditional services (ii) a partial % Ebitda / Revenues 12,6% 11,2% duplication of expenses on the two areas of services - innovative and traditional - with a EBIT 0,5 0,3 -40% temporary increase in the costs necessary for % Ebit / Revenues 4,2% 2,2% the adjustment of the structure (iii) one-off extraordinary costs incurred to carry out the EBIT Adjusted (*) 0,90 0,7 -23% reorganization and restructuring plan in the % Ebit Adjusted / Revenues 7,6% 5,2% ICT&Strategy subsidiary Net Profit 0,04 -0,06 n.s. (*) “Adjusted” values: obtained by adjusting % Net Profit / Revenues 0,4% -0,4% the results to take into account the Net Profit Adjusted 0,42 0,33 -21% amortisation/depreciation of consolidation % Net Profit Adjusted / Revenues 3,5% 2,5% differences 19 Financials: Financial statement Financial Statement 31.12.2018 30.06.2019 Variaz. The decrease is attributable to the amortisation of mln euro consolidation differences Fixed Assets The