Strategic Guidelines and 2021-2023 Business Plan

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Strategic Guidelines and 2021-2023 Business Plan

MILAN, NOVEMBER 2020

This presentation contains forward-looking statements regarding the timing and financial impact of SG Company SpA's ability to implement its business plan, expected revenues, and future success. These statements involve a number of risks and uncertainties

and are based on assumptions involving judgments about future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to accurately predict and many of which are beyond SG Company SpA's control.

Some of the significant factors that could cause actual results to differ materially from those indicated in the forward-lookingstatements include general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses or

legal developments, competitive pressure, changes in market requirements and standards and risk factors detailed from time totime in SG Company SpA's legal documents, including SG Company SpA's annual financial statements. The forward-looking

statements contained in this document are based on Management's reasonable belief as of the date hereof.

DISCLAIMER

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MARKET AND COMPETITIVE CONTEXT

SG COMPANYDIGITAL TRANSFORMATION

AND NEW BUSINESS

2021 – 2023BUSINESS PLAN

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01

02

03

⊙ SG Company has been one of Italy’s top players in the

Entertainment&Communication industry for over 20 years now, boasting a portfolio

of high-standing clients (A2A, ABI Eventi, Allianz, BlackRock, Medtronic, Vodafone,

Eolo, Wind3, PWC, Bayer, Basf, Ferrari, Mediolanum, Sisley, LVMH, Daikin, BMW,

Dainese, Enel, Eolo, CheBanca! Youtube, Generali, Lavazza, Vorwerk, Google, L'Oréal,

Luxottica, Pandora and Sky, TIM, Siemens, DAZN). It has planned, promoted, and

produced successful formats of international relevance such as Milano Food Week,

Milano Wine Week, Obecity, Sneakerness, DigitaDesignDays, etc.

⊙ Specialized in Digital Communications, Video Production, Consumer Format,

Meetings&Events Industry, it has launched a digital transformation process across all

its business areas and a strategy to enhance the value of the data extracted from its

"core" activities through the implementation of "MarTech" (Marketing Technology)

solutions.

⊙ SG Company's unique and distinctive value creation hinges on the synergy between

data and content - native digital and for the first time also live – that stems from its

exclusive ability to offer a single direction over creativity, production, and technology

for each project, guaranteeing clients constant integration between physical and

digital.

HIGHLIGHTS: SG COMPANY

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INTERNATIONAL PRESENCE

CURRENT LOCATIONS

CURRENT PARTNERSHIPS AND LOCATIONS IN OPERATION

⊙ The 2021-2023 business plan envisages a rebalancing of the mix of core activities and

focus on digital and innovative solutions with investments in specialized skills and

M&A; in 2023 revenues (Exp) of Euro 31.5 million, EBITDA margin 10%. Through

implementation of the Business Plan, the Group will position itself in the Digital

Communication and Marketing Automation segment, which is recording a high growth

rate in Italy and worldwide, accelerated even further by the current context.

⊙ The digital transformation process is backed by a capital increase with pre-emptive

rights of Euro 4 million, dedicated to M&A, development of technological platforms,

acquisition of specialized resources, and development of foreign markets.

⊙ Listed on the AIM of Borsa Italiana since 26 July 2018, registered as an innovative

SME since 1 October 2020, and ISO 9001 certified, the Group currently counts about

100 employees; in 2020, it embarked on the Benefit Company path to assert the

values of social and environmental sustainability that distinguish its activities.

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MAJOR CUSTOMERSHIGHLIGHTS: SG COMPANY

⊙ M&A process

⊙ Ramp up of Video Production and creation of

proprietary content

⊙ Development/launch of Tech platforms:

o Data gathering and analysis

o Online events

⊙ Inclusion of new skills

⊙ Open Innovation: start-up ecosystems,

universities, and research centers

⊙ Preparation of a flexible cost structure

⊙ Remuneration policy and Work for Equity plan for

Top Management engagement

ACTION PLANSTRATEGIC GUIDELINES

⊙ Launch of new "Data valorization” business line

⊙ Integration of MarTech solutions into the core

activities

⊙ Internationalization and development of foreign

markets

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THE DIGITAL TRANSFORMATION PROCESS TOWARDS THE NEW SG COMPANY

DIGITAL & LIVE

COMMUNICATIONS

Design and implementation of

360° experiences, where Tech and

digital solutions permeate every

project. Creativity, content, and

production work alongside digital

and technology to create extra

value for the client.

SG COMPANY FROM 2021: BUSINESS AND OPERATING COMPANIES

CONSUMER

FORMAT

Design and creation of

proprietary and/or licensed

consumer formats.

Co-marketing activities with client

companies to develop projects

capable of generating shared

value. Opportunities to export

successful "made in Italy" formats

to foreign markets.

VIDEO

PRODUCTION

Video production carried out

through two production

companies Double: productions in

TV and virtual studios, video

posters, vertical videos,

streaming, digital adv.

MEETING & EVENTS

INDUSTRY

Consulting, planning, and sales of

corporate & business travel

projects for large companies and

multinationals.

DATA

VALORIZATION

Powered by data extracted through

MarTech solutions from the Group's

core activities. To be created and fed

thanks to investment in human

resources and start-ups with vertical

expertise in big data (data

visualization and data analysis). In

compliance with regulations, the

Group positions itself as a FAIR

(Findable, Accessible, Interoperable,

Reusable) data company.

Revenues %

2020 2023

0% 6%

|«CORE» BUSINESS LINES NEW BUSINESS LINE

The Group will continue to focus on areas of excellence by

making the following organizational changes:

1. Separation of the divisions into different companies

to offer each a unique and distinctive positioning

recognizable by customers

2. «Sales» division across all group companies to share

the system, the network of relationships and

customer portfolios to scale new activities on

3. Control and coordination guaranteed by the Issuer

and staff functions (AFC, marketing, sales)

4. Lowering of the break-even point

5. Streamlined organizational flows.

SG COMPANY BUSINESS MODEL INNOVATION

As early as 2020, the service/product offering had evolved and a

proprietary platform for digital events had been developed.

1. Talent management: inclusion of vertical skills in

work teams and launch of a program to retain

company talent

2. Network centricity: network of solid alliances built

with suppliers and partners to make the company’s

market offering increasingly efficient and innovative

3. Innovation: participation in Open Innovation systems

and start-ups to engender ideas and innovative

services

4. M&A program to acquire possible targets of interest

as in the past.

Launch of a new business line that extracts and «enhances» on

the market the data made available through «core» activities

1. Inclusion of dedicated roles and/or companies/start-

ups with expertise in innovation and digital

transformation

2. Creation of a dedicated company to design and

implement data gathering through the activities of

other group companies

3. Possibility to sell on the market the design of

dedicated platforms and apps

4. Integration of a portfolio of marketing automation

services on top of the products and services currently

sold.

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EXISTING BUSINESS LINESBUSINESS LINES IDENTIFIED AND IN

IMPLEMENTATIONBUSINESS LINES TO BE IMPLEMENTED

MARTECH ACTIVITY PORTFOLIO

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ON AND OFFLINECONTENT

TECHNOLOGY

PRODUCTION

SERVICES PROVIDED

FIRST PARTY DATA

Profilation, Location, Navigation, Lifestyle, Biometrics, Transportation,

Insurance, Banking Data.

WE INTEGRATE TECHNOLOGY INTO ALL OUR VIDEO, LIVE, AND DIGITAL

PRODUCTION ACTIVITIES BY CHOOSING THE MOST SUITABLE FROM OVER 8,000

POSSIBLE MARTECH SOLUTIONS AVAILABLE ON THE MARKET:

Expertise identified and to be acquiredExpertise already in place

1. advertising and promotion (display adv, mobile marketing, search & social adv,

content adv, video adv…)

2. user experience and content marketing (e-mail marketing automation, content

marketing, interactive content, chatbot, QR Code).

3. social media management and pr (social media automation, lead generation,

conversion, omnichannel marketing)

4. commerce and sales (mobile app, sales customization, e-commerce, IoT, retail

proximity, hyper-geolocation, app & website development)

5. data management (data gathering, governance, privacy, data marketing, analytics,

dashboard, data science, customer intelligence, platform, cookies, fingerprints, pixel,

data visualization, wearable and IoT for distribution during format and live

communication).

Data gathering and analysis process Value Extraction

Data gathering from live and digital activities, or from formatsOrganization of proprietary or third-party data

Powering machine learning

Data processingEasy to understand insights

KPI presentation

Consulting in analysis and value extractionfrom information processed

Consulting related tobusiness solutions and action plans

based on information gathered and processed

DATA VALORIZATION: FROM GATHERING TO VALUE

DATA GATHERINGFIRST & THIRD PARTY DATA

DATA VISUALIZATION

DATA ANALYSIS

DATAACTIONABILITY

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DEVELOPMENT OF PROPRIETARY TECHNOLOGY PLATFORMS

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live streaming

sessions

Direction flow management

for live streaming sessions

(speaker connection from

remote) outside the platform

scope, including on several

virtual rooms simultaneously

Section dedicated to live

streaming Q&A

Exhibition and interactive area

with map of stands in

isometric view and different

sizes depending on type of

sponsorship

Exhibition space dedicated to

the sponsor, divided into 4

available formats

"Networking" area with match

making and user search

function, one-to-one chat

between participating users

and exchange of digital

business cards

Personal user area with

personal profile editing,

archive of received digital

business cards, list of favorite

digital events, chat with

conversation history.

Interactive agenda of live

streaming sessions, with

identification by content

categories

DYHM is SG Company's proprietary digital event management platform,

fully responsive on all types of devices. The three main features of the

platform are:

exhibition area

with sponsor

stands

business

networking

opportunities

ROLE ORGANIZATION CHART: C-SUITE

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Chief Mark. & Operat. Officer

Chief Executive Officer

DavideVerdesca

Chief Digital & Innovation OfficerChief Sales Officer

Chief Financial Officer

HALLMARKS

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Reputation and twenty years of experience built on the quality

of services and professional expertise of human resources

Portfolio of high-standing clients, for the development of

new business areas

Diversification of core sectors (banking, pharma, insurance,

automotive, energy, ICT, food & beverage, luxury, beauty,

delivery)

High growth rate sector

International scalability thanks to the network of offices and

partnerships abroad

Open innovation project for technological integration

between core & digital activities and data valorization

Data Ethics Canvas: In data processing, data privacy and

data ethics are integral parts of the SG approach.

Track record of success in the M&A process

Innovative SME and Benefit Company with start of ESG

process

GROUP AND CURRENT SHAREHOLDERS

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SG S.r.l.

80%100%100%100%

CURRENT SHAREHOLDERS

82.7% | DL S.r.l17.3% | Market

The Board of Directors of SG Company is composed of the two founding partners assisted by the CFO and COO. The independent member is Prof. Carlo

Altomonte (Bocconi). The Management team boasts solid experience both in the historical business lines as well as in the innovative ones, such as

digital, hybrids, format design and development.

MARKET AND COMPETITIVE CONTEXT


AND NEW BUSINESS


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01

02

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⊙ Marketing Technology: a $121 billion market with a 22% growth rate:

⊙ US companies invest 26% of their budget in marketing technology. The spillover rate in

Italy is quite interesting: digital and technology are among the levers of growth that

companies from across every industry are betting on.

⊙ Marketing automation solutions: software designed to personalize content, speed up

response times, automate digital and marketing activities, produce and store

multimedia content, and create omnichannel experiences.

⊙ Goal: generate insights from data and build data-driven marketing strategies and

activities.

GLOBAL TREND: DIGITAL, THE PRIME CHANNEL

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Winners: A Losers: B

Short

Term: 1

○ Pharmaceuticals

○ Medication and protective

equipment (PPE) manufacturers

○ Home exercise equipment

○ Carry out food providers

○ Home office equipment makers

○ Alcoholic beverage makers

○ Casual and relaxed fashion

○ Restaurants

○ Sports stadiums, concert halls

○ Museums

○ Gyms

○ Parks, beaches, recreation areas

○ Physical schools and universities,

especially private

○ Real estate owner and services

○ Formalwear

Short &

Long

Term: 2

○ Online Retailers

○ Online grocers

○ Networking software service

and hardware providers

○ Streaming service providers

○ News and entertainment

services

○ Telecommunications

○ Cleanliness products

○ Online Education

○ Cruisers

○ Tourist service providers

○ Oil producers and distributors

○ Manufacturers of gasoline engine autos

and trucks

○ Mass transit service and equipment

providers

○ Brick and mortar retailers

○ Movie theatres

WINNING AND LOSING CATEGORIES IN THE COVID-19 RECESSION

WARC DATA Global Ad Trends, May 2020

GLOBAL TREND: ON DEMAND OR STREAMING, EVERYTHING, AS LONG AS IT'S VIDEO

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⊙ The trend of spending on Global Ad is recovering rapidly,

brands have decided how to manage their communications

in the new normal, and budgets are back on track.

⊙ Investments in digital channels are confirmed, with much

better average performance than other media. Video and

social media remain the two main channels, and forecasts

show further improvement.


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From 2021, the live events sector is also expected to reverse upwards

and enjoy a positive trend until 2024.

Accelerated transformation of E&M segments versus forecasts,

especially for the video segment. Cinema versus video on demand

(SVOD) subscriptions is now reversing historical trends.

The volume of data consumed by smartphones versus fixed

broadband shows how mobile is set to become the primary gateway

to the web for consumers worldwide.

PwC GlobalEntertainment &

Media Outlook2020-2024

MARKET ANDCOMPETITIVE CONTEXT


AND NEW BUSINESS


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02

03

BUSINESS PLAN DRIVERS

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AInternationalization through

Nexthing network and expansion

of business lines (production and

post-production of commercials)B

Launch of a new business line

Data Analytics CInvestment in proprietary

technology platforms and

development of Open Innovation

projects in association with

universities, research centers or

start-ups

DUpselling to customers by

directing them to new business

lines with higher margins

EConsolidation of the hybrid

events business line FEfficiency with over 50%

reduction of structural and

personnel costs to make them

consistent with the new

company size (BEP)

GBuilding of strong commitment

with staff to achieve business

plan targets (Work for Equity) HM&A and strategic partnerships

for the integration of skills in

Digital and Data Driven areas

A B C D

E F G H

3-year exclusive agreement with ACI Blue team, a 100% ACI Group company, to provide top clients with a unique offering. Under the agreement, ACI will offer operational services related to meetings & events, while SG will provide digital strategy & communication services.

Thanks to the agreement in place, SG Company will be able to continue to offer, through ACI, meetings & events services, incurring lower costs in line with the Business Plan target of lowering the break-even point.

ACI Blue team is positioned among the top 5 companies in the organization of meetings & events in Italy with high-standing clients.

NEW STRATEGIC PARTNERSHIPS:

BUSINESS PLAN TARGETS

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Net revenues Normalized EBITDA

NFP (cash) Operating cash generation (excluding capex)

PN

REVENUES DEVELOPMENT 2020-2023: BREAKDOWN

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FOCUS ON HISTORICAL AND SCOPE CUSTOMERS

⊙ Historical Business Area: focused on traditional business in the MICE and live event area, whose

contribution will remain firmly above 50% of total generated revenues, without exceeding 2019 levels

⊙ Areas for Improvement (i.e. Upselling and Cross + to be developed): driven by the introduction of the

Phygital and Video product, in addition to the traditional Digital business (contributing roughly 30% of

total)

⊙ New Business Area: to be developed with entry of 2 new executives into the company scope. The

percentage on turnover increases from 10% in 2021 to 15% in 2023

Data ‘000€

Revenue generation detail 2019A %

Top 3 7,699 20.6%

Top 10 16,330 43.6%

Top 20 22,494 60.1%

Totale 37,442 100.0%

Di cui confermabili 21,203 54.0%Of which confirmable

Total

Historical Cross + to be developed TotalNew Upselling

SG COMPANYa Sharing Growth Company

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Thankyou

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Strategic Guidelines and 2021-2023 Business Plan

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