Group strategy and forecasts

2006

Andrea De Marchi

Vice General Manager & CFO

Itway Group

London, September 2006

These slides have been prepared solely for the use at the current presentation and they cannot be shown or disclosed, totally or partially, to anybody without prior written consent by Itway Group.

•• Itway Group Itway Group

•• StrategyStrategy

•• FinancialsFinancials

•• AnnexesAnnexes

Agenda

Who we are

Itway is a group of leading companies in the supply and licensing of technologies for e-business solutions, able to offer concrete and highly affordablesolutions to its partners.

Itway bases its offer on a precise strategy:

ü To offer best of breed technologies to the market;

ü To train, to follow and to support its partners in a highly qualified way;

ü To utilize best knowledge and most advanced available instruments;

ü To build an integrated offer together with our partners on every bid.

The Group

100%

90%

ASA

100%

100%

VAD SBU ENTERPRISE SBU

100%

Our Main Vendors

Our major Customers

•• Itway Group Itway Group

•• StrategyStrategy

•• FinancialsFinancials

•• AnnexesAnnexes

Ø Continuous growth in Turnover (+ 40% in the first 9 month period of 2006 fiscal year, compared with the same period of previous fiscal year), against a growth of the Information & Communication Technology market in Europe of about 5%.

Strategy: Results achieved

ü January 2005: distribution agreement with Symantec for Iberian p eninsula;

ü May 2005: acquisition of distribution activity of Softway Group;

ü July 2005: acquisition of 100% of Tinetis Srl;

ü September 2005: acquisition of 100% of Interaxon S.A.;

ü January 2006: exclusive partnership and distribution agreement with Verdasys, a Boston based company, strictly related with the Massachusetts In stitute of Technology (MIT), specialized in Data Level Protection (DLP) data safety solution(i.e.: protection of the intellectual property, industrial espionage, telephone call monitoring, market abuse);

ü February 2006: exclusive distribution agreement regarding 10 European Countries with BroadWeb, American multinational company, leader in the development of Intrusion Prevention System (IPS) based on ASIC technology;

ü March 2006: distribution agreement with Zultys Technologies, American company that designs and produces solutions for integration of voice and data on the same company network. The Partnership is in force for all the countri es currently addressed by Itway Group and is aimed to widen the offer in the Wireless and VoIP field with solutions which allow the convergence between voice, data and fa x traffic.

Strategy: Strategic agreements

ü July 2006: distribution agreement with Tropos Networks, an American company market leader in the manufacturing of products and services based on an exclusively patented Wi-Fi technology, called “Mesh”. This agreement is in force in all the countries addressed by Itway.

Strategy: Strategic agreements

• Business Week ranking of hot growth companies

ØMay 2002: Itway Group guaranteed NATO-Russia summit from hacker attacks;

ØDecember 2002: Itway included in best 40 European companies ranking for growing rate;

ØOctober 2003: Itway Group provided IT security for meeting of European leaders in Rome;

Ø April 2004: Itway S.p.A. shares are admitted in TechStar segment ofNuovo Mercato of Italian Stock Exchange;

ØOctober 2004: Itway Group provided IT security for meeting of signature of European Constitution in Rome;

ØOctober 2004: Itway included in the best 100 European companies ranking for growth rate*;

ØOctober 2005: Itway included in the best 500 (221°) European companies ranking for growth rate*.

Strategy: Events

Short term 2006/08

Ø Start up of branches in Switzerland, East Europe and Balkan Area;

Ø Further acquisitions in distribution and in System Integration;

Ø +20 / 30% in turnover;

Ø Profitability increase from:ü strong internal rationalization and integration actions;ü increase in value added products and services.

ØContinuity in dividend distribution.

Strategy: Short term goals

Strategy: Short term goals

Increase Increase in turnover per in turnover per employeeemployee

Base Base +57%+57%

+22%+22%

2004

2004

2005

2005

2006

2006

Strategy: Short term goals

EE--commerce commerce (On board) (On board) as efficiency as efficiency engineengine

71%68%

85%82%

% Tur

nove

r

% Tur

nove

r

On boa

rd

On boa

rd

%

% O

rder

s

Orde

rs

from

from

On

On

boar

dbo

ard

100%100%

50%50%

53%

Client managed byClient managed by On boardOn board

56%70%

2004

2005

2006

88%

72%

Strategy: Short term goals

Produttività e performance: tempo medio di evasione Produttività e performance: tempo medio di evasione ordiniordini**

--

----

200X

200X

200X

200X

200X

200X

ProductivityProductivity and performance: and performance: AverageAverage time in time in orderorderprocessing*processing*

22

4433

2004

2004

2005

2005

2006

2006

* days

Ø To maintain the high growth rate of last year;

Ø To consolidate the distribution and e-business solution design market;

Ø To be a leading player in Mediterranean Area;

Ø Internal and external growth (self-financed);

Ø EBITDA>10%:Ø improvement of gross profit;

Ø cost cutting (O.H. and organizing).

Ø Improvement in net working capital management:Ø trend to quick in-flows from clients;

Ø high turnover of inventory.

ØContinuity in dividend distribution.

Strategy: Medium and long term goals

Ø To consolidate the market leadership in current offering:

üSecurity management;

üConvergence (VoIP, …);

üRDBMS;

üCentral Access Management;

üInternetworking;

üOther solutions.

Ø To enlarge offering to SME and SOHO;

Ø To improve organizational efficiency and effectiveness in internal processes;

Ø To enlarge customer base;

Ø To define a new catalogue of courses to enlarge the Itway Academy offering.

Strategy: Strategy for VAD SBU

Ø To consolidate organizational and functional synergies, to increase scale of operations and to maximize results of each segment of activity;

Ø To consolidate strategic partnerships and to define new ones;

Ø Involvement in complex and strategic and high value contracts (i.e. Italian Ministry of the Interior for personal identification system in Libya);

ØTerritorial diversification of opportunities (Mediterranean Area);

Ø Improvement in:

üOperating efficiency;

üSelling Process (reorganization of processes: from scouting to delivery);

üPersonnel management (detailed scheduling, ready to engage);

üFocus on services and consultancy sales;

üDiversification in industries.

Strategy: Strategy for SBU Enterprise

•• Itway Group Itway Group

•• StrategyStrategy

•• FinancialsFinancials

•• AnnexesAnnexes

*Financials: Preliminary statement

Ø In the following slides we will comment the financial data of the Itway Group relating to the period ended June 30, 2006 and the same period in 2005 (Ist half of the fiscal year from 1st October to 30 September).

Ø All presented financial data are prepared adopting the Internati onal accounting standards (IAS/IFRS). The main IAS adjustments to income statement relate to accounting for goodwilll, since its value is recoverable from future cash flows (the previous method of accounting was systematically depreciation).

Ø Therefore, in the following slides, it will be commented only th e data of the 9 month periods of each fiscal year 2005-2006, since they are the only comparable ones according to the mentioned IAS/IFRS.

Financials: Consolidated Profit & Loss

SALESSALES**

Var.

+39,7%

EBITDAEBITDA**

2.695

Var.

+53,4%

EBITEBIT** EBTEBT**

65.771

2005

2006

2005 2006

1.757

Var.

2005

1.2502.171

+73,6%

91.864

2006

Var.

2005

1.064

2006

1.772

+66,5%

* 9 months Amounts in thousands of Euro

Financials: Profit & Loss SBU VAD

SALESSALES**

50.88677.143

Var.

+51,6%

EBITDAEBITDA**

Var.

+124,0%

EBITEBIT** EBTEBT**

2005

2006

2005

2.556

2006

1.141

Var.

2005

9992.243

+124,5%

2006

Var.

2005 2006

1.0642.054

+93,0%

* 9 months Amounts in thousands of Euro

Financials: Profit & Loss SBU Enterprise

SALESSALES**

14.88514.721

Var.

-1,1%

EBITDAEBITDA**

EBITEBIT** EBTEBT**

20052005 2006

* 9 months Amounts in thousans of Euro

616

2006Var.

139

-77,4%

20062005

251

(72)

Var.

-128,7%

0

2005

2006

(282)

Var.

Financials: Consolidated Balance Sheet (Thousands of Euro)

3434

86.073(5.462)

93814.76520.227

8.52611.701

Sep.30, 2005

91.86463.142Turnover(9.988)(12.521)Net Financial Position

-313Long Term Loan16.659*15.765Net Worth26.64728.286Total invested capital14.13915.650Net working Capital12.50812.636Non current assets

Jun.30, 2006

Mar.31, 2006

Days Days NetNetWorkingWorkingCapitalCapitalOutstandingOutstanding

20042004 20052005 20062006

35353030

* Includes Pre-Tax results of the period

•• Itway Group Itway Group

•• StrategyStrategy

•• FinancialsFinancials

•• AnnexesAnnexes

Il Cliente

E-Business Solution

Solution ApplianceInternet working

e-commerceinfrastructure

Security

RDBMS - BI

SBC

Il Cliente

E-Business Solution

Solution ApplianceInternet working

e-commerceinfrastructure

Security

RDBMS - BI

SBC

Who we are: The integrated approach of the Group

Solution ApplianceInternet working

e-commerceinfrastructure

Security

RDBMS -BI

SBCE-Business Solution

Client

ØValue Added Distributor which provides complex software, supplying consultancy and training.

ØModel of Business recognized as one of the most innovative at European level by operators and by independent research firm.

ØFocus on distribution of software addressed to realization of e-business solutions.

Ø Irreplaceable junction ring between vendors and VARs, SI e Telcos, in the chain of value of distribution.

ØDynamic structure able to concentrate itself on markets with the higher growth rates.

Ø Infomediary, “Distrigator” and indispensable partner for VARs, SI and Telcos.

Who we are: SBU VAD, a model of value

ØConsultancy and production of solutions and software for e-business:

ØCreation of internet portals to manage activities b2b, CRM, Call Center and Wireless Application, Datawarehouse

ØSupply of outsourcing services, knowledge management and EDI)

ØSolutions with Sun, HP and IBM products;

ØSale and integration of products and services to centralize applications;

ØSale and integration of products and services of logic security of information systems;

ØServices of design, realization and maintenance of solutions based upon Internet, Intranet e Extranet

ØSecurity e served based computing consultancy

Who we are: SBU Enterprise

THANK YOU FOR ATTENTION

Andrea De MarchiVice General Manager & CFO

Itway Group