Franchetti S p A : Integrae videocall

Franchetti Spa

Integrae Videocall April 17th, 2024

Management Team

Paolo Franchetti

CEO & Partner

Civil engineer specialized in the dynamics of existing and monumental structures

He is a member of the Study Commission for the Port of Venice and of the Maritime Traffic Evaluation Commission of the Giudecca Canal and carries out a regular activity as an Associate

Professor at the University of Padua.

Director of the

International Road Federation (IRF) from 2023 to 2025, he was a visiting professor at UCI Irvine (University of California).

Michele Frizzarin

Partner & R&D Director

Structural engineer specialized in the field of analysis and verification of existing structures, he deals with inspection and structural analysis of concrete, steel and masonry infrastructures and historic and monumental buildings

He has deepened his training in the study of the dynamic and seismic behavior of structures

Gianluca Del Fabbro

General Manager

Management engineer, manager with 25 years of experience in globally active industrial realities, Del Fabbro is in charge of continuing and accelerating the process of continuous growth and managerialization of the company both in the national and international market, also through the startup and/or or the acquisition of new companies

Previously he held various managerial positions in Italy and abroad both in multinationals and in SMEs

Omar Emiliano Salustri

CFO Franchetti Italia

Master Degree in

Economics and Commerce, enrolled in the Register of Statutory Auditors at the MEF

He deals with the administrative, accounting and financial management and personnel management of SMEs, up to multinationals

He carries out auditing and control activities as a member of Boards of Statutory Auditors

Franchetti Spa |. FCH

Index

Company Overview

FY2023 Financial Results

Q&A

Annex

Franchetti Spa |. FCH

Company Overview

Franchetti Spa |. FCH

Who we are

Franchetti is a software house specialized in the development of mathematical models, which through the use of proprietary algorithms and

software sells products and services aimed atthe sustainable management and predictive maintenance of existing transportation networks.

Skills

Database

Assets

Services

Output

Engineering

Computer sciences

Data collected worldwide

Proprietary software suites and algorithms

Predictive maintenance scheduling

Diagnosis and treatment of infrastructure maintenance

Reduction of times and costs (extending the life cycle of existing infrastructures)

Franchetti Spa |. FCH

Franchetti at a glance

74

5

40k+

38k+

Employees

Countries of presence (on 3 continents)

Equivalent bridges subject to intervention to date

Bridges and viaducts in the world included in Argan

• Expert evaluators of the safety conditions of existing infrastructures and software specialists for engineering
• Franchetti has been operating for 20+ ys. in Italy (registered office in Arzignano, Vicenza), Brazil and
  Canada
• It has a corporate presence in the US and India
• Franchetti's main field of endeavor is in the area of structural capex, namely inspection, analysis and predictive maintenance scheduling of the high-value elements - primarily bridges - of complex transportation networks
• Argan© is the artificial intelligence software, in-house designed, to carry out the predictive maintenance of infrastructures
• Pathwork© is an original software designed and built by Franchetti Spa which aims to achieve optimal planning of the construction site of a stretch of road work

Estimated value of the global

• 20bn maintenance engineering services sector (per annum)

• The Group's clients are national and international public and private leadplayers in road and rail infrastructure management

Franchetti Spa |. FCH

Value chain

Franchetti operates in all areas of activity, being the most integrated player particularly in the areas of infrastructure design, facility and hospital design, structural instrumental monitoring, development of software and Artificial Intelligence tools for asset management, maintenance planning support to the contracting station. Additional success factors and elements of competitive advantage for Franchetti

are innovation, use of technology and software development.

Activities

Infrastructure	Facility and	Structural	SW and AI	Maintenance
development
hospital	instrumental	planning
design	for asset
design	monitoring	support
	management

Franchetti Spa |. FCH

Business model

Thanks to adeep know-howand specialized expertise in the engineering field the Group is able to access structural damage in a wide range ofexisting structures and define the best intervention strategies during their lifetime.

The Group's customers

National and international

public and private leaders in the management of road and

railway infrastructures

• Long-termconcessionaires (typically 20+ years) of entire
  portions of the infrastructural network
• Typically organized in several
  independent territorial compartments (however, the
  Group usually concludes contracts with the customer's "central administration»)

The Group's contracts

Mainly multi-year contracts

(estimated for approx. 2 subsequent years in addition to

the current one)

• Acquired both through private negotiations and through public
  and/or private tenders (taking part in an average of 200
  tenders each year, winning an average of 15% of them)

The Group's commercial structure

Tenders office (selects the public tenders to participate in and draws up the necessary documentation)

• Area managers (carry out commercial activities for direct assignments and manage the relationship with customers in the area)
• Branches (they ensure the presence of the markets of interest in the territories)

Franchetti Spa |. FCH

Reference market: components and trends

Franchetti's reference market is related to infrastructure maintenance services, a strategic sector for economic and environmental sustainability

1. Technological Advancements

2. Condition Monitoring

3. Predictive Maintenance

4. Data Analytics and AI

5. Remote Monitoring

6. Government Initiatives

• Infrastructure maintenance services: related engineering services is estimated at more than € 20.00 billion*, since most of the infrastructure in the world was built after the Second World War and received an insufficient level of maintenance.
• The infrastructure market includes railways, ports, highways, airports, water, sanitation and waste, with business opportunities in design and construction.
• Strategic and fast-growing sector with high potential for the predictive maintenance of infrastructure due insufficient level of maintenance through continuous monitoring and real time monitoring.

Franchetti Spa |. FCH *Source: Integrae SIM Equity Research, 2022

Strategies

Franchetti intends to pursue the development and growth strategy both internally and externally.

1. Strengthening of the presence in the markets where the Group already operates

1. Acquisitions of companies that carry out activities consistent with the Group's core business
2. Expansion of the offer of ICT services on predictive maintenance
3. Expansion into new sectors contiguous to that of infrastructures
4. Expansion into relevant international markets

Franchetti Spa |. FCH