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Cloud Services for non stop business Company Presentation October, - - PowerPoint PPT Presentation

Premium Cloud Services for non stop business Company Presentation October, 2018 Disclaimer 2 This document has been prepared by Wiit S.p.A. (the Company) for information and discussion purposes only, it contains only summary information


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Premium Cloud Services for non stop business

Company Presentation October, 2018

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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
  • therwise, 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
  • f 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
  • f 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

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  • Wiit S.p.A. (ISIN: IT0004922826)
  • Borsa Italiana, AIM Italia / Alternative Investment Market (listing on the Italian main market to follow)

Listing Venue

  • Price: € 45 per share
  • Market Cap: € 115 m
  • No. Shares post IPO: 2,566,074
  • Offer Size: 709,760 shares
  • Free float: 27.7%
  • Offer 31.9 m ; Demand 90 m; Funds raised 31.9 m

IPO

  • Italian 53%, 47% abroad

Investors

  • Support the external growth through acquisitions

Use of Primary Proceeds

  • 18 months

Lock-Up Arrangements

  • Intermonte: Sole Global Coordinator and Sole Bookrunner

Syndicate Structure

  • 5 June 2017: Start of trading

Listing Issuer

  • Advance SIM

Nomad

WIIT IPO

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Free Float 24,8% Management & Others 7,8% Own Shares 2,5% Orizzonte SGR 2,3% Wiit Fin Srl 62,7%

Shareholding Structure at September, 30th 2018

Management & Other stake could raise up to 10% assuming the assignment

  • f

all performance shares (no. 57,327 shares to be assigned at the end of 2018 to managers)

  • No. Shares 2,594,739

4

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CONTENTS

1 Wiit at a glance 2 Investment Case 3 Financials 4 Strategy

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1

Wiit at a glance

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SERVICES LOCATIONS

Shared resources among a community of users Non critical apps Service controlled and exclusive to the user Departmental and critical apps Ability to move workloads between private and public platforms Outsource the elements of infrastructure like Virtualization, Storage, Networking, Load Balancers Core hosting operating system and optional building block services that allow you to turn your

  • wn applications

Consumed as a service

  • nly for the applications

needed

IaaS

Infrastructure as a Service

Public Cloud Hybrid Cloud

Introduction: What is Cloud Computing?

Private Cloud PaaS

Platform as a Service

SaaS Software as a Service

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SERVICES LOCATIONS

Shared resources among a community of users Non critical apps Service controlled and exclusive to the user Departmental and critical apps Ability to move workloads between private and public platforms Outsource the elements of infrastructure like Virtualization, Storage, Networking, Load Balancers Core hosting operating system and optional building block services that allow you to turn your

  • wn applications

Consumed as a service

  • nly for the applications

needed

IaaS

Infrastructure as a Service

Public Cloud Hybrid Cloud

Introduction: What is Cloud Computing?

Private Cloud PaaS

Platform as a Service

SaaS Software as a Service

8

WIIT FOCUS

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9 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

The new Market Trend for Critical Corporate Apps

Customer Private Cloud Hosted Private Cloud Public Cloud

Managed Services Business Continuity Wiit Delivery Platform

Business App

Non Critical

  • +

Critical

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10

  • 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 about 35% of total

capacity

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

Datacenter for business critical applications

TIER

Datacenter Class Site infrastructure Definition Components IT capacity to support load Distribution Path Maintenanc e w/o service downtime Fault tolerant = w/o manual intervention Compart mentation = all components are separated and duplicated Continuous Cooling Availability year average Fault probability in 5 yrs (2) Fault probability in 10 yrs (2)

4

Enterprise Corporations Fault tolerant 2N+1 Fully Redundant Double Active- Active

   

99,995% 4,9% 9,6%

3

Large Business Concurrently maintainable N+1 Fault Tolerant One Active One Standby

   

99,982% 28,0% 48,2%

2

Medium Size Business Redundant N+1 single

   

99,75% 90,6% 99,1%

1

Small Business Basic N single

   

99,67% 95,0% 99,8%

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Cloud Arena

PaaS IaaS

System management Backup & Data Storage Dedicated and shared servers Data Center Help Desk

SERVICES PUBLIC Cloud CLOUD TYPE System Integrator

Database Management SAP system mngmnt &

  • ther APP

SAP Application Support SOC & Cyber Security Software

SaaS

The perfect mix to guarantee critical SLAs

Datacenter Provider WIIT

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Wiit at a Glance: a pure Cloud player for global corporations

KEY FINANCIALS (€mn) *

Consolidated Consolidated 11,9 12,8 15,3 19,6 10,7 3,0 3,8 4,7 8,5 4,6

25,2% 29,6% 30,6% 43,3% 43,0%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0,0 5,0 10,0 15,0 20,0 25,0

2014 2015 2016 2017 H1-2018

Revenues Ebitda Adj. Ebitda Adj.%

GROWTH H12018 Vs H12017

+16% Total Revenues +36% EBITDA Reported +25% Core Revenues

+ 18% Total Revenues

+41% EBITDA Adjusted

CAGR

2014-2017

2 Data Centers (1 TIER IV)**** 4 branches in Italy ,1 in Switzerland 1 in Albania 5 SAP certifications** 5 Quality certifications*** Over 60 corporate clients “WIIT” Over 200 sme clients “Adelante” Over 70 connected countries About 100 dedicated staff “WIIT” About 50 dedicated staff “Adelante”

KEY OPERATIONAL DATA

(*) EBITDA adjusted excluding the Figurative cost of Performance Shares and IPO costs (**) Source: SAP website – September 2018 (***) ISO 27001; ISO 20000; ISO 22301; ISAE 3402; ISO 9001 (****) Source: Uptime Institute Website – Tier Certification
  • f
Constructed Facility – March 2017

The growth of Cloud with high visibility of cash-flow Top 10 clients have 76% abroad revenues

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Wiit market positioning

  • ICT spending 2 – 50 M€
  • Inefficient / ineffective sourcing model
  • Focus on quality, security, reliability,

response speed and costs

  • ICT Spending > 50 M€
  • Internal sourcing and/or big players
  • Outsourcing through divestment of

branches of the company 100 M€ Turnover 4.000 M€ Mid Large Enterprises Small Enterprises Large Enterp.

  • Low globalization
  • Market follower
  • High change resistance

Cloud journey Index

  • High globalization
  • Market innovator + fast

follower

  • Mid-Low change

resistance

  • High globalization
  • Market fast follower
  • High change resistance

Industry Segmentation Industry IT Drivers

Big Players

20 M€ Small/Mid Enterprises

Local IaaS

  • ICT spending 0,5 – 2 M€
  • Internal sourcing model
  • Cloud as efficiency enabler
  • ICT Spending below € 0,5 mn
  • No value-cloud culture
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2

Investment Case

reasons to invest

7

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Pure Cloud player

  • ne of the few Italian companies exclusively specialized in key services for clients’

business continuity in the Private and Hybrid Cloud

  • Oracle Gold Partner
  • Official Microsoft Partner
  • SAP Partner
(*) Source: Uptime Institute Website – Tier Certification of Constructed Facility – March 2017

ISO 27001 ISO 20000 ISO 22301 ISAE 3402

Information Security Process Compliance Business Continuity Audit & Governance

Data center with the TIER IV Certification, the highest world class attainable in reliability and security

In Italy there are only 6 Tier IV data centers, while in the world merely 45*

Top certifications for Process, Security, Continuity and Governance Partner of SAP – Wiit is one of the most certified SAP partner in the world in Outsourcing services

Wiit has 5 (out of 6) SAP certifications in Outsourcing and Cloud Operations

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A leading pure Player in critical Cloud Services for Enterprises…

Full direct control of the entire stack of services

Asset, Skills and Process completely owned and controlled by Wiit

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16 954 1.228 1.510 1.839 2.202 2.595

  • 500

1.000 1.500 2.000 2.500 3.000

2014 2015 2016 2017E 2018E 2019E

  • Cloud computing is one of the most solid and growing fast IT segment:

20+% of 2014-19E CAGR in Italy (*)

  • Cloud Computing SaaS and Cloud Computing IaaS, PaaS and XaaS

and CyberSecurity are 3 out of 6 higher potential ICT investments according to CIOs (Nextvalue, Survey “La trasformazione Digitale vista dai CIO”, 2017)

  • Cloud and BigData are still the fastest growing segments in “Digital

Enablers” Market and CyberSecurity increases its last 2y CAGR from 5% to 12% (* and **)

  • The investments on Cybersecurity is growing faster in the last 2 years

(CAGR 16-17E 12% vs CAGR 14-16 10%) most due to attention for new regulation data policy (GDPR) and higher disruptive impact of cyber attacks CLOUD MARKET IN ITALY “ATTRACTIVITY MATRIX” WILLINGNESS TO BUY AND INVESTMENT PRIORITY

Assinform Report, 2017 (based on analysis conducted by Netconsulting Cube) (*) Source: 2017 Assintel Report on NEXTVALUE 1000 CIOs and IT Managers surveys ("Ricerca sulla domanda IT in Italia", 2017) (**) Source: 2016 Assintel Report, 2016)

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…a 20+% growing Market

M€

Additive Manufacturing / 3D Printing Blockchain Robotics Artificial Intelligence Augmented Reality Cognitive Computing Open Data mPayment Internet of Things eCommerce Digital Marketing Cybersecurity Big Data & Analytics Mobile / Collaboration Cloud Computing (IaaS, PaaS, XaaS) Cloud Computing (SaaS) NICHE AENIGMA HIGH POTENTIAL WELL KNOWN Willingness to buy Investment Priority

Cloud 18,8% Big Data 22,5% Web Management Platforms 16,0% Internet of Things 15,8% Mobile Business 13,3% Security 12,0%

“DIGITAL ICT MARKET IN ITALY

CAGR 2016E-18E Total Market Value ≈11,5 €bn

Assinform Report, 2017 (based on analysis conducted by Netconsulting Cube)

19% 9% 4% 25% 35% 9%

Assinform Report, 2017 (based on analysis conducted by Netconsulting Cube)
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  • Top standing large and medium enterprises with high credit worthiness

and high IT budget spending

  • Many multinational groups, well diversified by economic sector, supported

by Wiit at a global level

  • Very high retention rate (high client satisfaction)
  • More than 60 clients* WIIT, with a stable growth over the last years
  • More than 200 clients Adelante
  • Direct sales force
  • Increasing avg. revenues per client thanks to:
  • Bigger new clients
  • Increasing share of clients’ needs satisfied by Wiit
  • Cross-selling of further services to existing clients

3

High standing Client Base…

Financial Services 3% Engineering & Construction 1% Public 3% Process 22% Industrial 22% Professional Services 13% CPG & Retail 36%
  • Fig. 2

% CLIENTS BY SECTOR (Revenues 2017)

(*) Core clients: clients generating more than 100k€ / year and relating to core business (cloud, SAP) and extended core (user support and document management)- excluding una tantum projects and non core activity (NDP, Hyperion) (**) Source Clients Financial Report 2017 and Management account – data not audited
  • Fig. 1

CLIENTS GLOBAL DISTRIBUTION 70 connected countries

The first 10 Top Clients have 76% overseas turnover (**)

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4

  • Multiannual contracts grants a high predictability of the business
  • 55.7 €mn (*) of Backlog as at 1st January 2018, equal to 2.8 times 2017A sales
  • Multiannual maturity: 4-5 years standard
  • High penalties for the client in case of early termination:

usually ~60-70% of residual contract value from the 2nd- 3rd year on

  • Quarterly or monthly invoicing
  • Wiit has the right to interrupt services if the client does not

pay TYPICAL WIIT’S CONTRACT SCHEME BACKLOG AS AT 1st JAN 2018 (€mn)

…granting a high Visibility of Business

19,6 55,7

0,0 10,0 20,0 30,0 40,0 50,0 60,0

SALES 2017A BACKLOG 2.8 x

(*) Management account – Data not audited
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  • Experienced management team which led the development of Wiit since its foundation
  • Commitment enhanced by a direct stake in the Company
  • Bonus mechanism based on EBITDA increase
  • Performance shares plan (total of no. 57,327 shares to be assigned in December 2018)

5

A committed Management Team…

Alessandro Cozzi

PRESIDENT & CEO

Classe 1972
  • Founder
and majority shareholder of Wiit - President and Chief Executive Officer since its inception
  • Expert
in business administration, finance and controlling, directly pilots the administration and financial activity, strategic alliances and M&A activity

Riccardo Mazzanti

GENERAL MANAGER

Classe 1970 Esperience:
  • 1994 – Consultant at Infogroup
  • 1997 – Manager of the data center
and opening of new Metro Cash & Carry shopping centres
  • 1999 – CIO of The Medusa Film
Group (Fininvest Group)
  • 2005 – CRM Director for the startup
  • f DTTV in Mediaset
  • 2008 – General Manager of Wiit

Enrico Rampin

SALES & MARKETING DIRECTOR

Classe 1968 Esperience:
  • 1998
– Sales Executive North-east and central region for a Systems Integrator company
  • 2002 – Sales Leader in CPG
market for Oracle
  • 2009 – Sales & Marketing
Director of Wiit

Francesco Baroncelli

CMA & Head of New Markets

Classe 1971 Esperience:
  • Founder of Adelante Group
– director of Adelante with 20 years of experience in the Information Technology.
  • 2018
– Chief Mergers & Acquisitions & Head of New Markets of Wiit
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  • Continued revenues growth in the last years, riding the Cloud market trend to expand the client base and the services offered
  • Big potential for a margin expansion thanks to a scalable platform with fixed costs mainly:
  • Personnel
  • Connectivity costs
  • Rent

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

* EBITDA adjusted excluding the Figurative cost of Performance Shares and IPO costs 12,7 15,5 19,6 9,2 10,7 0,0 5,0 10,0 15,0 20,0 25,0

2015A 2016A 2017A 2017H1 2018H1

3,8 4,7 8,5 3,9 4,6 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0

2015A 2016A 2017A 2017H1 2018H1 43,02% 25,2% 30,6% 43,3%

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…leading Wiit to achieve a Sharp Growth…

41,97%

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GROSS CASH FLOW HISTORY (M€)** Wiit boasts a big cash generation potential:

  • Facilities now used at 35% of their capacity
  • Limited

maintenance capex for technological update and for continued R&D (approx. €1.0mn per year on average in 2014-2017)

  • Development capex mainly for new clients (set-up

costs to be sustained in the first contract year)

  • Modest NWC needs

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…with high Cash Flow Growth + 39%

2,2 2,9 3,8 7,0 2,7 3,9 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0

2014A 2015A 2016A 2017A 2017H1 2018H1

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3

Financials

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Income Statement

High Growth, increasing margins

  • 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 process
  • Tax benefits active from year 2016 on:
  • “Super-ammortamento”: 140% overvaluation of

the 2017 investments in new assets purchased or

  • leased. Opportunity to benefit
  • f subsidy for

investments in intangible capital goods (software and IT systems)

* EBITDA adjusted excluding the Figurative cost of Performance Shares and IPO costs IFRS Form (€ 000) 2015 2016 2017 2018 H1 Intangible Assets 717 917 1.402 3.151 Intangible Assets - Goodwill 1.315 1.315 1.315 1.315 Property plant and equipment 6.579 8.920 12.912 14.192 Other Tangible Assets 1.864 Investments in associates 464 464 458 458 Total non-current assets 10.939 11.616 16.087 19.116 Inventories 50 12 Trade and other receivables 4.040 4.023 3.292 3.420 Intercompany receivables 594 875 1.122 644 Advance Tax 314 300 377 832 Other liquid assets 556 475 395 1.376 Total current assets 5.554 5.685 5.186 6.272 Tax current liabilities 92 292 366 672 Trade and other payables 2.602 1.729 2.058 1.865 Payables vs related companies 756 Other payables and current liabilities 704 708 807 3.917 Total current liabilities 4.154 2.729 3.231 6.453 Net Working Capital 1.400 2.956 1.955 (181) Other payables and non-current liabilities 300 320 220 120 Employee benefits liabilities 667 817 918 1.007 Provisions for deferred tax liabilities 32 29 29 41 Total non-current liabilities 999 1.166 1.167 1.168 NET INVESTED CAPITAL 11.340 13.406 16.875 17.767 Equity 2.960 4.512 24.755 20.497 Net Financial Debt (Cash) 8.380 8.895 (7.880) (2.731) Cash and cash equivalents at year-end 2.103 3.610 21.514 20.767
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Balance Sheet

Low NWC and indebtedness

  • Fixed assets mainly include the two Wiit’s datacenters

(today used at approx. 35% of their capacity) – amortization in 5 years

  • Goodwill refers to the merger of Senvenlab S.r.l. into Wiit in

2014 and acquisition of a division of Visiant Technologies in 2015

  • Convertible bonds: are all converted in IPO
  • 3,7mn capex impacted on 2018 H1 EBIT

Net Financial Debt (Cash) (M€)

8,4 8,9 (7,9) (2,7)

  • 10,0
  • 8,0
  • 6,0
  • 4,0
  • 2,0
0,0 2,0 4,0 6,0 8,0 10,0

2015A 2016A 2017A 2018H1

IFRS Form (€ 000) 2016 2017 2017 H1 2018 H1 Consolidat ed Consolidat ed Consolidat ed Consolidat ed NET SALES 15.341 19.556 9.225 10.683 Cost of products and service sold (excl. IPO costs) 7.586 7.255 3.362 3.936 Cost of employees (excl.Figurative cost Perf.Shares) 2.616 3.606 1.863 1.975 Other cost and charges 400 217 117 176 Variation of inventory 38 12 12 Total costs 10.640 11.089 5.353 6.087 EBITDA Adjusted 4.701 8.467 3.872 4.595 30,6% 43,3% 42,0% 43,0% Amortisation, depreciation 2.300 3.433 1.426 2.398 Figurative cost of Performance Share 2016-2018 585 394 197 141 IPO Costs 455 394 OPERATING PROFIT 1.817 4.186 1.855 2.056 Depreciation of investments in associates (6) Financial income 19 42 8 2 Financial costs (466) (452) (266) (315) Exchange rate differences (18) 92 10 11 RESULT BEFORE TAXES 1.352 3.862 1.606 1.754 Income taxes 441 725 310 370 NET RESULT 911 3.137 1.296 1.383
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Net Financial Debt (Cash) (M€)

Handling of the cash desk

Cash € 7,9 milion

Investment classified in other reserves for the counter- value at market price of 48,320 treasury shares that Wiit S.p.A. purchased during the period between January and June 2018, as part of the buy back program € 2.4 million Distribution of dividends € 2, 1 million Application of accounting principle IFRS16 which increased payables to other lenders for € 1,6 million

Cash € 2,7 milion

Cash flow from OA before changes in WC € 4,6 million Investments mainly due to the purchase of technological infrastructures that will be used to provide services to new customers acquired € 3.7 million No cash impact - only IFRS reclassification

effect € 4 million

Starting period 1 Jan 2018 End Period 30 Jun 2018

+

  • Cash € 6,7 million

before IFRS reclassification effect

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

(E) Average of Analysts Consensus for the year ending December 31, 2019 (source: Banca IMI, Intermonte SIM and Midcap LCM, October 2018) 12,7 15,5 19,6 24,9 30,5 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 2015A 2016A 2017A 2018E 2019E 3,8 4,7 8,5 10,4 13,5 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 2015A 2016A 2017A 2018E 2019E 42% CAGR FY15 - FY17 +50% 25,2% 30,6% 43,3%

Group Annual Economic Results 2015-2019E

(Y18-Y19 Estimate by Analysts Consensus)

44% 1,9 2,4 4,2 5,2 7,5 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 2015A 2016A 2017A 2018E 2019E 14,6%

EBIT (M€) and MARGIN %

0,2 0,9 3,1 3,8 5,6 0,0 1,0 2,0 3,0 4,0 5,0 6,0 2015A 2016A 2017A 2018E 2019E

NET PROFIT (M€) and MARGIN %

CAGR FY15 - FY17 +50% CAGR FY15 - FY17 +301% CAGR FY15 - FY17 +24% 11,6% 21,4%% 20,9% 24,6% 1,5% 5,9% 16% 15,5% 18,2% CAGR FY17 - FY19E +25% CAGR FY17 - FY19E +34% CAGR FY17 - FY19E +26% CAGR FY17 - FY19E +33%
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4

Strategy

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Be a Leader in Private & Hybrid Cloud

Organic Growth External Growth

FOCUS - Increase market share

  • 1. Increase salesforce and personnel
  • 2. Focus on top clients (high needs and

large IT budget)

  • 3. Sectorial focus:
  • fashion / luxury, made in Italy and

industrial & manufacturing - sectors in which Wiit already has deep expertise and credentials

  • insurance

and pharma –

  • ther

sectors with good potential FOCUS – Wiit European leader in Private Cloud

  • 1. Italy: M&A to consolidate Cloud Market
  • 2. Europe: M&A strategy (see next page)

28

GROWTH STRATEGY

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29

Focus on Acquisition Strategy

External Growth

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

29

M&A STRATEGY

Italy

1. Strategic acquisitions to enter more effectively in foreign markets 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 of

  • perations in Italy. Two examples:

Europe (DE, FR, UK)

Cloud players with a business model comparable to Wiit and multiannual contracts schemes lower (same business model) cost synergies IT players which can be considered part of the current Wiit Value Chain (for instance Datacenter, Cloud IaaS), have a client base suitable to an up-selling strategy and possibly multiannual contracts medium cost synergies + revenue synergies (up-selling) Profile Integration risks Synergies

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ADELANTE ACQUISITION EXPANDS MARKET SHARE

July 2018 - Wiit completed the Eur 6.4 Mn (plus earn-out) acquisition of Adelante Group.

  • 0.9x FY17 Sales (7 Mn€)
  • 7.1x FY17 EBITDA (0,9 Mn€)

(Wiit equivalent price multiples, 6.2x and 13.9x respectively) The outlook for Adelante is strong, with 30% EBITDA growth expected in 2018. Synergies of 0.5 Mn€ within the next 24 months

  • Increase Wiit Market Share in Italian Cloud

market

  • Expand Wiit presence in mid-size Enterprises

and in central Italy

  • Enforce Wiit M&A Team with a dedicated

Chief M&A Officer

Business Drivers Financial Drivers

M&A process

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SLIDE 31

www.wiit.cloud

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32

Glossary

Private Cloud Traditional delivery of IT services where the IT infrastructure is bought and put into a data center placed inside the company. Hosted Private Cloud Elaboration environment dedicated to the client, but placed in a specialized provider. This allows to empower a foreign supplier the management of the IT infrastructure through contracts which guarantee established service levels. Public Cloud It allows the access to IT infrastructures shared among more users connected to internet. This service is suitable for the use

  • f non-critical services and applications which do not deal with sensitive information of the company.

Hybrid Cloud It allows the access to IT infrastructures placed on different layers of cloud according to their nature (Private Cloud, Hosted Private Cloud and Public Cloud), whose operating principle is guaranteed by a specialized provider. IasS The "Infrastructure as a Service" provides only the servers and the storage: the user has to install the software, manage the hardware and check if everything works. PaaS "Platform as a Service". It is the distribution of elaboration platforms (Computing platforms). The elements of the PaaS allow to develop, implement and manage the company applications without the costs and complexity related to the purchase, the configuration, the optimization and the management of the basic hardware and software. SaaS It is a cloud computing service. "Software as a Service" is a model of distribution of the software where a developer develops, operates (directly or through third parties) and manages a web application which the developer makes available for his/her clients. IoT "Internet of Things" is the expression used to define the net of the devices connected to internet. It represents the set of technologies which bring the intelligence to the machines, allowing them to communicate with us or other machines. ERP Enterprise resource planning is a management system, called information system, which gathers all the business process of a company (sales, marketing, inventories management, accounting…). DR Disaster Recovery: in IT, it is the recovery of the data contained in the server. BC Business Continuity: describe the processes and procedures which a company has to put in place in order to guarantee the critical functions may keep working after a disaster. EPM Enterprise project management gather the instruments and the management approaches of the company. BI Business Intelligence is referred to: 1) set of business process concerning the collection of data and analyse strategical information; 2) technology used to build this processes; 3) information obtained as output of this process. CRM Customer relationship management is the management of the relationship with clients ICT Information and communication technology. IT Information technology. Cloud computing Series of technologies which allow to elaborate, archive and save data thank to the use of hardware and software sources distributed through the net. ASP Application Service Provide is the supply of an application by a lender, usable through the net. It is the outsourcing of the hosting of an application or online service.

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  • Appendix
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History

Second certification: SAP Application Management Services Certification ISO 20000 Acquisition of Enterprise Class Datacenter for Hosting & Cloud Third certification: SAP Cloud Solution Certification ISO 27001 3 new SAP certifications: SAP Hana SAP BPO SAP Infrastructure Services Startup of GOS BU (Global Outsourcing SAP) First certification SAP Hosting & Adaptive IT Provider Joined ELITE program by Borsa Italiana – London Stock Exchange Opening the capital to Private Equity Fund “Orizzonte SGR” Acquisition

  • f Visiant Technologies

Hosted Private Cloud B.U.

  • f Visiant Group

Acquisition second Datacenter for Disaster Recovery and Business Continuity Services Data Center TIER IV Design Data Center TIER IV Construction by Uptime Institute certification Certification ELITE

Business Evolution

Certifications ISO 22301 Business Continuity ISAE 3402

Corporate developments

Open Branch WIIT CH and WIIT Operation Florida (USA) IPO on Italian Stock Exchange M&A Process: Focus on Europe and USA

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The Hosted Private Cloud Offering of Wiit

SERVICE FAMILY

PaaS IaaS Saas

SERVICES WIIT OFFERING

Software Wiit provides services of Document Management and Dematerialization in SaaS mode leveraging on its high-end datacenter. In this way a model of pay-per-document has been enabled and added to the cloud offering. SAP Application Support Dedicated user support in SAP including when it is time for application updating. Wiit is always at the side of the client to assist them with their business processes. SAP system management and other APP The crew is equipped with specialized competencies at the highest levels in SAP (6 certifications in management and maintenance services) available 24/7. Database Management 24/7 access to specialized know-how in basic components of applications, operating systems and databases. SOC & Cyber Security Advanced Threat Intelligence Service available 24/7. Military grade technology available as a Service covering Network, Identity Access Management, Vulnerability Management, Endpoint Security and Messaging Security System Management Processes, procedures and tools are all certified according to international standards (ITIL, ISO20000). Wiit

  • ffers a 24/7 availability guarantee of always state-of-the-art infrastructures.

Help Desk Tech support to guests is available 24/7, in Italian or English, and is constantly controlled in terms of quality served and perceived. Dedicated and Shared Servers Market leader in technology performance and security, tailor made to the specific needs of the client. Wiit guarantees processing capacity according to demands requested. Backup and Datastorage Market leader in technology performance and shared security by all clients. Wiit is able to offer access to company data real time and always protected. Data Center Equipped with 2 Data Centers in Italy, one of which is Tier IV certified (the highest world class in reliability). Wiit’s data Centers offer a guarantee in service continuity. Networking Wide bandwith range of resilient and reliable connectivity available for connecting clients hq with Wiit Data Centers. RIPE Autonomous System for internet bandwith optimization and fault tolerancy.

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The main certifications of WIIT

Continuous Improvement in the DNA

Data Center Milano 1 Data Center Castelfranco Veneto ISO 27001 ISO 20000 ISO 22301 SAP Hosting SAP HANA SAP AMS SAP Cloud SAP BPO SAP Infrastructure Services ISAE 3402 ITIL / ISO 9001 Oracle Services High Availability of service Business Continuity Compliance Information Security Process Compliance with ITIL standards Business Continuity Services and hosting on SAP Performance and innovation Application capability Elasticity and pay per use Business Process on SAP Apps Tailored infrastructure solution Control Service Qualified professionals and business process Technology skills

FACILITY SECURITY COMPLIANCE

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SLIDE 37 Milano Castelfranco Veneto Roma

italian branches

Firenze

70 2 4

connected countries global branches

2

enterprise datacenter

70%

clients with DR/BC

90%

clients run ERP suites

80%

clients run SAP

92K

conc/dd users

65

active clients

2,5B

annual transactions

We support our clients on a global level

Geographical coverage of clients connected to our Datacenter

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(*) Source: SAP website – February 2017

GLOBAL PARTNERS: IBM, ACCENTURE, HP cater to larger corporations with a logic of a dedicated and multi-platform steward LOCAL PARTNERS: cater to medium-large clients with a logic

  • f specialization

Wiit is one of the most certified SAP partner in the world in Outsourcing services

Only 2 companies in the world (Wiit and Atum IT Services India) have 6 (out of 7) SAP certifications (*)

SAP service providers

SAP CERTIFIED PARTNERS IN ITALY (*)

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Wiit’s competitors in Italy

  • Wiit’s competitors in the Italian Cloud and IT Outsourcing market are:
  • The big players or the System Integrators are not structured to cover the middle size companies market

efficiently, economically and with a good quality and flexibility

  • Multinational companies of huge size (like IBM or HP) organized

in

  • rder

to service big-size customers, equipped by an extended and articulated organizational structure

  • National companies (or with limited European reach) of middle-large

size (like Engineering or telco companies which adopt internally developed solutions) offering a wide range of consulting services, system integration, sales of hardware and applications, where usually cloud services are not a core business

  • National companies that offer a niche service, tailored on

few clients or on a captive market (such as Dedagroup or Leonardo Group)