Digital Value S p A : PRESENTAZIONE GRUPPO DIGITAL VALUE – 31 Marzo 2021

Digital Value Group

Italian leader in Digital Transformation

March, 2021

CONFIDENTIAL INFORMATION

Disclaimer

• This Presentation may contain written and oral "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of Digital Value S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
• The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.
• Massimo Rossi, in his position as responsible for the preparation of financial reports, certifies pursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and accounting information disclosures herewith set forth correspond to the company's evidence and accounting books and entries.
• As of today, the audit work by our independent auditors on the FY20 results have not yet been completed.

2

Key Highlights FY2020

M€	Revenues
	+77,5
(+21,2%)
364,8	442,3	440,4	+1,9
		(+0,4%)
2019	2020	Consensus
	Ebit
	+7,0
(+25,7%)
27,1	34,0	31,7	+2,3
		(+7,3%)
7,4%	7,7%	7,2%
2019	2020	Consensus

Ebitda

+13,5

(+42,1%)

	45,4	41,8	+3,6
31,9	10,3%		(+8,5%)
8,8%		9,5%
2019	2020	Consensus

Net Income

+5,0

(+26,1%)

19,1	24,1	21,7	+2,4
		(+11,2%)
2019	2020	Consensus

3

Stock Evolutions YtD

M€

~440M€ Mkt Cap

Digital Value

FTSE MidCAp

FTSE Mib

4

Macro & Micro Economics Environment

5

Structural Underpenetration of Italian IT Market

6

Italian IT Hardware Market

Not in Target

7

Italian IT Software Market

Not in Target

8

Italian IT Services Market

Not in Target

Not in Target

Not in Target

9

Italian IT Services Market

Legenda

Growth /

Defend

Address

10

Addressable Core Markets Size & Mkt Shares

					Market Size 2020 (as per pg 7-9)						Addressable Verticals 2020 (as per pg 10)
B€												15,4
11,6
											Implementation	5,0
PC & Tablets	3,3
Servers	0,6						5,5		HW Support	0,8
Ext contr-based Storage	0,2
0,9
Enterpr. Ntwk Equip.							Infra Managed Services	3,3
1,0
Unified Communication			Infra SW	2,8		IaaS
							0,4
Out oif Scope	5,6								BPaaS	0,4
							Out of Scope	5,5										Growth /
						Out oif Scope	2,7
																								Defend
		Infra HW					Infra SW	Services							Address
* Source: Gartner Market Forecast WW 2018 2024 - Q4 2020 Note Data - Product/Services not included in each Segment (2020E/2021E): (1) HARDWARE: Mobile Phones
(4,8/5,1), Printers (0,8/0,8);	(2) SOFTWARE: Enterprise Applications (2,7/2,8);	(3) SERVICES: Consulting (3,5/3,4), Application Managed Services (1,2/1,1), BPO (0,7/0,7)
										Estimate Core Addressable Markets Size & Mkt Shares
																		DV Revenues 2020	% Top Large Customers
	B€		18,7													442,3		35%		40%	45%	50%
						Other Verticals						ESTIMATE CORE ADDRESSABLE MARKET
	Services		9,9					22,0%			Vertical Prospect
								Vertical Addressed	4,1		4,7	5,3	5,9
						34,0%
	Infra SW		2,8													Vertical Prospect	2,6		3,0	3,4	3,7
														ESTIMATE DV MARKET SHARE (2020E)
										54,0%
	Infra HW		6,0					Vertical Addressed						Vertical Addressed	10,7%		9,4%	8,3%	7,5%
																		Vertical Addressed	6,6%		5,7%	5,1%	4,6%
			Mkt Size 2020										+ Prospect

11

ITA Piano Nazionale di Ripresa e Resilienza (Recovery Fund)

12

"Hyper-VAR" - Enhanced Vision & Mission to improve value and longevity

13

Vision

a platform approach to the VAR Role for enhancing the Value Creation of the ICT-Infra chain

EU

Recovery

Funds

&

ITA Bozza

Piano

Ripresa e

Resilienza

Customers

Hyper-VAR

• An integrated two sided platform approach bonds the relation

with both the Customer and the Vendor, increasing the value for	Boosted
all the players;	pandemic
 A trusted, very large and national player will foster the adoption	and post-
of the newest technologies in the Italian market, allowing the	pandemic
scouting of the «best-of-breeds» in the offering of the most	digitalization
innovative vendors worldwide

Vendors

14

Mission

to be a trusted go-between, able to read the customer needs and to contribute in designing / delivering the best state-of-the-art tech excellence

Markets	• Become the point of reference in the ICT market for the design and the implementation of
the most appropriate / fitted solution offered by the largest digital technologies' providers;
&
Sector	• Stay focus on Target

• To be a Hyper Value-Added Reseller, enhancing the customer's infrastructures and

	platforms towards the best of breed, thanks to:
Competences	•	Excellence in the competence of the «human last mile» (technical and commercial)
& capabilities	•	HUB of Capabilities: multi-Vendor /multi-Cloud /multi-Security

• One-stop-shoppingin the supply chain for the Top/Large Customer, leveraging on Public Sector experiences

15

Go To Market

Markets

&

Sector

Competences & capabilities

• Strengthen the Group's positioning in the Telco, Public Sector and Manufactoring markets (~15B€ Market size 2021*)
• Expansion in the Finance, Insurance, Utilities and Transportation sectors (~9,2B€ Market size 2021*)
• Foster in the Large Enterprise market towards indirect channel (Industrial districts)
• Improvement/widening of the Defense market presence
• Address System Integrators to get new market relevance in offering proposal which combine application and technological product / services on a multiyear basis
• Evolving to fifth generation secure device management services
• Evolution of the current NOC and Software Factory into a multi-tech,multi-cloud and multi-sec Hyper Competence Centre (HUB Cube)
• To be the logistical B.O.B. (best of breed) for the supply of managed infrastructure equipment for the Corporate market
• On going state of the art certfications and qualifications

* Source: Gartner Market Forecast WW 2018 2024 - Q4 2020 Note Data include only Enterprise spend, excluding Consumer spend

16

Comments from Key Vendors on VARs

"In addition to our direct business model, we rely on a network of channel partners to sell our products and services, enabling us to efficiently serve a great number of customers"

Dell, which ran a direct-only distribution model until a decade ago before switching back to using VARs

"Partners are critical to developing solutions that meet customers industry specific needs, and Microsoft is committed to supporting them" Microsoft

"We rely primarily on indirect sales channels for the distribution of our solutions" Nutanix

"Our failure to maintain good relationships with channel partners would likely lead to a loss of end users" VMWare

"I think Broadcom's focus does not appear to be building long-term relationships, certainly with your typical mid-market reseller type organization. And so what may have previously been loyalty between that channel and Symantec, I think is certainly open. And those partners are showing a greater interest in and willingness to introduce those account over the Mimecast that previously, they may not have"

Mimecast, about Symantec being bought by Broadcom, which does not go through resellers, and about how they can get market share from the situation

17

OrgChart & Core Tech Competences

18

Organization

Enhanced Organization:

Board of Directors• Chief Revenue Officer Top & Territory

• Sales Dept Senior Managers

• Business Dev. Officer

• Chief Technology & Innovation Officer

• Purchasing Officer

• Chief Financial Officer

Chief Operating Officer	Chairman &
Chief Executive Officer

Chief Financial Officer	Chief Technology &	Chief Revenue Officer	Chief Revenue Officer	Business Development	Bid & Public Tender
	Innovation Officer	Telco & PA	Top Private&Territory	Officer
Investor Relation	Services				Marketing

Human Resource	Information Tech	Commercial Planning
Purchasing Officer	Post Sales
Legal

19

Ecosystem & Strategic Alliances

Ecosystem

Strategic Alliances *

*By alphabetical order

107

20

Customer Relationships and Stickiness

• The average life of relationship with the top tier customers witnesses the high level of knowledge gained thanks to the capabilities of the tech staff to understand the evolution of clients needings.
• The customer intimacy is essential in the above process and its success is due to the seniority of our sales managers which reputation has been achieved and recognized in several years of market coverage.
• Here below are few examples of significant long lasting commercial relationships:

since 1987	since 2002
since 1997	since 2007
since 1999	since 2014
since 2000	since 2015

21

Financial Results FY2020

22

Revenues Evolutions and Seasonality

M€

	+77,5
	(+21,2%)
	442,3	440,4	+1,9	1H	2H
364,8			(+0,4%)
				46,5%	53,5%
2019	2020	Consensus			2020

23

Revenues Line of Business

The most intrinsic value component of our offering. Systems for digital business transformation based on specific technologies (Big Data, IoT, AI) accompanied by strong expertise in

application development and integration of vertical solutions from leading vendors both on premise and in the cloud.

The backbone of digital business, the enabling infrastructure for any IT project or solution prepared for new business needs. Systems for processing, storing, transferring information and data, with advanced technologies and full control of data security and business continuity. Everything is also needed to enable and support the path to the public cloud.

This LOB covers all needs in terms of digitalization of workstations, including all products, services and infrastructure to provide e2e solutions both in project mode and as an outsourced service. It is aimed at all public and private companies that need to organize their workforce, both at their offices and at remote locations or in smart/remote working..

Digital Business Transformation

Next Generation

Data Centers

Smart Workspace

Transformation

		Cloud platforms	Modern		Video
Edge Computing	Big Data - AI - IoT	and software	Integration
Applications	Communications
		(PAAS / SAAS)

Core IT &	Cloud - IAAS	Next Gen Networks	Cybersecurity
Governance	& Security

Personal	Printing	End Point
Computing	Security

24

Revenues Bridge by Line of Business

M€

					+77,5
					(+21,2%)
						40,5	442,3
			36,8	0,2
				71,8%	96,7
	364,8	37,4%					(21,9%)
Digital Business	56,2
Trasformation	(15,4%)
									210,4
Next Generation	210,2							(47,6%)
Data Center	(57,6%)

Smart Workplace	98,4				135,2
			(30,6%)
Trasformation	(27,0%)
		2019	Smart Workplace	Next Generation	Digital Business	2020
			Trasformation	Data Center	Trasformation

25

Revenues Bridge by Industry

M€

			364,8
Telco &	88,1
Media	(24,2%)
Industry &	128,4
Finance	(35,2%)
Consip	49,1
(i.e. PA Tender Office)	(13,5%)
Large Public	85,0
Admin
(23,3%)
System
Integrator				14,2
				(3,9%)
			2019

+77,5

(+21,2%)

					23,1	-6,1
				18,4		17,9%
		35,7		-6,9%
		37,5%
6,4	42,0%
45,1%

System	Large Public	Consip	Industry &	Telco &
Integrator	Admin	(i.e. PA Tender	Finance	Media
		Office)

442,3

82,0

(18,5%)

151,5

(34,3%)

67,5

(15,3%)

120,7

(27,3%)

20,6

(4,7%)

2020

26

Revenues Bridge by Activity

Activity

M€

Technical

Services *

Software

Infrastructure

			+77,5
			(+21,2%)
			46,2	2,6	442,3
					4,2%	64,5
		28,7	41,4%
			(14,6%)
364,8	14,9%

61,9

(17,0%)157,7

(35,7%)

111,5

(30,6%)

220,1

191,4(49,8%)

(52,5%)

* Not People intensive

2019	Infrastructure	Software	Technical	2020
			Services *

27

Ebitda Bridge

M€

442,3
	-342,7
		-31,7	-13,6		45,4
			-8,9	10,3%
REVENUES	COGS Products	COGS Services	Personnel	SG&A	EBITDA

28

Ebitda Bridge

M€

+13,5

(+42,1%)

6,7

31,96,8

8,8%

-45,4

10,3%

2019

∆ Volume

∆ Mix

∆ Personnel

2020

29

Net Financial Position & Net Cash Flow

M€

(28,0)	(4,9)	(32,9)

NFP	Net Cash	NFP
2019	Flow	2020
45,4

		-12,6
				-18,3
						-7,7	-0,4
						-1,0	-0,5
	Ebitda	Capex	Change	Cash Tax	Net	Funds	Others
				NOWC			Interest

30

Takeaways

31

Takeaways

Revs

Profitability

• Cash
  Conversion

Competences

&

Capabilities

• Hyper VAR Strategy: the clear and focused marketing and commercial discipline are the key success factors in the Digital Value market positioning;
• Growth-centricstrategy: Digital Value posted another >20% top line increase - despite the COVID-19 turbulence - significantly higher than the core reference market;
• Vast "top-tech" partner list and growing number of certifications: Digital Value is the reference trusted partner for CIOs in the digital transformation;
• Enhanced sales strategy:

• • Partnering with System Integrators in order to combine application and technological product / services on a multiyear basis;
  • Develop a new Indirect Sales channel
• Focus on high contribution-margin revenues without neglecting traditional core areas
• Lean organization and strict cost control: DV tapped the double-digit EBITDA margin one year before market expectations
• Well managed Working Capital dynamics: unnecessary cash absorption avoided
• Net cash position: Digital Value has the financial resources to participate to the in-market consolidation
• Total Shareholder Return: among the highest in the EU ICT market
• Strengthened commercial organization in order to defend/expand the group position in core markets and increase penetration in new sectors/industries
• Enhanced tech & innovation capabilities: hired new senior and middle management
• Delivery and customer caring: undisputed excellence area for customer bonding;
• Governance: improvement across all the corporate processes

32

Appendix

33

FY 2020 - Consolidated Income Statements

K€	Reclassified consolidated income statement	31/12/20	%	Var.	31/12/19	%
	Revenues from sales and services	440.583			363.204
	Other revenues and income	1.674			1.629
	Total Revenues and Other Income	442.257	100,0%	21,2%	364.833	100,0%
	Product acquisition costs	361.234	80,8%		299.974	82,2%
	Service costs and rents, leases and similar costs	40.217	9,9%		38.215	10,5%
	Change in inventories	-18.541	(4,2)%		-19.299	(5,3)%
	Personnel costs	13.642	3,1%		13.595	3,7%
	Other operating changes	334	0,2%		422	0,1%
	Total product acquisition costs and operating costs	396.885	89,7%	19,2%	332.908	91,2%
	EBITDA	45.371	10,3%	42,2%	31.925	8,8%
	Depreciation and amortisation	10.329	2,3%		4.286	1,2%
	Doubtful debt provision and risks provision	1.032	0,2%		578	0,2%
	EBIT	34.011	7,7%	25,8%	27.061	7,4%
	Financial income and charges	(454)	(0,1)%		(304)	(0,1)%
	Impairments on financial assets	0			0
	Earnings before taxes (Ebt)	33.557	7,6%	25,5%	26.757	7,3%
	Income taxes	9.432	2,1%		7.622	2,1%
	Net profit	24.125	5,5%	27,8%	19.135	5,2%
	Group net profit	24.099			18.976
	Minority interest Net Profit	26			159

34

FY 2020 - Consolidated Balance Sheet

K€	Reclassified Consolidated Balance Sheet	31/12/20	31/12/19	Var.
	Intangible assets	1.853	1.285	568
	Goodwill	13.561	13.561	0
	Property, plant & equipment	34.742	33.020	1.722
	Investments	421	13	408
	Other non-current assets and deferred tax assets	49	42	7
	Total non-current assets	50.626	47.921	2.705
	Inventories	50.103	31.562	18.541
	Trade receivables	96.165	84.291	11.874
	Other current assets	109.709	108.716	993
	Current assets	255.976	224.569	31.408
	Trade payables	222.216	222.344	(128)
	Other current payables	5.879	5.551	328
	Current liabilities	228.095	227.895	(200)
	Net working capital	78.507	44.595	33.912
	Provisions and other non-current tax liabilities	17.639	3.027	14.612
	Non-current net laibilities	17.639	3.027	14.612
	Net Capital Employed	60.868	41.568	19.300
	Group net equity	93.539	69.440
	Equity attributable to minority interests	186	160
	Medium-term Net Financial Position	24.977	1.584
	Short-term Net Financial Position	(57.835)	(29.616)
	Tot. Net Financial Position (Net Liquidity)	(32.858)	(28.032)
	Own funds & Net Financial Position	60.868	41.568

35

FY 2020 - Consolidated Cash and Cash Equivalents

	A. Flussi finanziari derivanti dalla gestione reddituale (metodo indiretto)	31/12/20	31/12/19
	Utile (perdita) dell'esercizio	24.125	19.134
K€	Imposte sul reddito	9.432	7.622
Interessi passivi/(interessi attivi)	454	304
	1. Profit / (loss) 1. Utile / (perdita) dell'esercizio prima delle imposte sul reddito, interessi,	34.011	27.061
	dividendi e plus/minusvalenze da cessione
	Accantonamento a fondi	1.117	787
	Ammortamenti delle immobilizzazioni	10.329	4.286
	Svalutazione dei crediti	628	398
	Svalutazioni per perdite durevoli di valore		0
	Altre rettifiche per elementi non monetari	12.073	5.472
	2. Flusso finanziario prima delle variazioni del ccn	46.085	32.532
	Decremento/(incremento) delle rimanenze	(18.541)	(18.328)
	Decremento/(incremento) dei crediti verso clienti	(10.844)	(1.343)
	Incremento/(decremento) dei debiti verso fornitori	11.153	49.199
	Decremento/(incremento) ratei e risconti attivi	(44)	(33.149)
	Incremento/(decremento) ratei e risconti passivi	15	(321)
	Altre variazioni del capitale circolante netto	(513)	12.649
	Totale variazioni del capitale circolante netto	(18.774)	8.706
	3. Flusso finanziario dopo le variazioni del ccn	27.311	41.238
	Interessi incassati/(pagati)	(454)	(304)
	(Imposte sul reddito pagate)	(7.666)	(9.018)
	Dividendi incassati		0
	Utilizzo dei fondi	(1.049)	(752)
	Totale altre rettifiche	(9.170)	(10.074)
	Flusso finanziario della gestione reddituale (A))	18.141	31.165
	B. Flussi finanziari derivanti dall'attività d'investimento
	(Investmenti) Immobilizzazioni materiali	(11.407)	(32.956)
	(Investmenti) Immobilizzazioni immateriali	(1.212)	(1.431)
	(Investmenti) Immobilizzazioni finanziarie	(408)	0
	(Investmenti) Attività finanziarie non immobilizzate		(11)
	Flusso finanziario dell'attività d'investimento (B))	(13.027)	(34.399)
	C. Flussi finanziari derivanti dall'attività di finanziamento
	Incremento/(decremento) debiti a breve verso banche	(8.284)	19.744
	Accensione / (rimborso) finanziamenti	22.144	(2.346)
	Aumento / (diminuzione) di capitale a pagamento / (rimborso)	0	65
	Flusso finanziario dell'attività di finanziamento (C))	13.259	17.463
	Incremento (decremento) delle disponibilità liquide (A +/(-)B+/(-)C)	18.373	14.229
	Disponibilità liquide alla fine dell'esercizio	73.262	54.889
	Disponibilità liquide all'inizio dell'esercizio	54.889	40.661

Cash & Cash Equivalents

M€

+18,4

	45,4
			-12,6
																			73,3
54,9																	18,4
			-18,5											-0,8
							14,1
							-0,5	-7,7				13,3
				-10,8	11,2
										-0,5
BoP		EBITDA	CAPEX	INVENTORY RECEIVABLES	PAYABLES OTHER&FUND OFCF	CASH TAX		NET	NET BANK	OTHER	Cash &		EoP
										INTEREST					Cash

equivalent

Change

37