AIM ITALIA FACTS Year End 2015

Italian small companies are turning to capital markets: AIM Italia proves steady growth to 74 listed companies with a combined market cap of €3bn at year-end 2015 • 20 new listings • Over €280m money raised in IPO (+35% vs FY2014) • Over €50m further capital raises and bond issues • Increasing liquidity with velocity turnover of nearly 40% (vs 36% FY2014)

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AIM Italia Facts

FY2015 Overview AIM ITALIA • AIM Italia is the Italian stock market of Borsa Italiana launched in 2009 dedicated to small and mediumsized companies with high growth potential. AIM Italia is a MTF (Multilateral Trading Facility) with a more flexible regulation in comparison to Borsa Italiana’s main market MTA (regulated market), offering a simplified procedure for the IPO.

• The Nominated Adviser – Nomad – is a corporate finance broker approved by the Italian Stock Exchange. The Nomad plays a key role in the listing process, being responsible for advising and guiding a company on its responsibilities in relation to its admission to AIM, as well as on its continuing obligations once on the market. The listing company will be working closely together with the Nomad at the admission and on an ongoing basis. In this choice, the company has to ensure that the Nomad: understands its business, has appropriate experience in the sector and shares the company’s vision for the future.

MARKET CAP OF €3.0BN AND FUNDS COLLECTED OF €720M

• At December 2015, AIM Italia companies were 74 (CAGR 2009-2015: 63%), with a market capitalization of €3.0bn (CAGR 2009-2015: 45%). • 20 new comers in 2015 (18 IPOs and 2 Admissions), vs 22 in 2014, 3 delistings and 2 SPACs completed their mission by the acquisition of 2 companies.

• Total funds collected in IPO since 2009 amounted to €783m: €720m by newly issued shares and €63m by sale of existing shares.

• 56% of companies placed in IPO a float between 10-25% of the share capital. Over 40% raised less than €5m in IPO. At the end of 2015, 70% of companies had a market capitalization below €50m. • Companies on AIM Italia collected additional funds through further capital raises and corporate bonds (mainly convertible bonds) for over €210m since 2009.

• 2015 FTSE AIM Italia performance was a 10% index decrease vs FY2014 and vs FTSE Small Cap and Star indexes, in strong growth, respectively by 20% and 40%. COMPARISON WITH AIM UK

• AIM UK of London Stock Exchange, with a 20-year history, is now well-established as the leading growth market for small and medium-sized companies. AIM UK includes companies from a wide range of industries and shows higher trading volumes in comparison to AIM Italia.

• AIM UK counted 1,044 listed companies at the end of 2015 with a total market cap of around GBP73bn.

• In 2015 AIM UK market index rose by 5%, while AIM Italia market index declined by 10%.

OUTLOOK

• Financial markets troubles and AIM Italia’s lack of substantial dedicated institutional investors may impact the number, size, timing and quality of listings on AIM Italia in 2016. • We expect that secondary fundraisings and bonds could further increase according to the historical trend.

• 2016 could be the year of the first transfers from AIM to the main market MTA of the largest and fastest growing AIM companies based on press releases.

• In the first half of 2016 AIM Italia is expected to continue suffering a structural high volatility. The lack of both dedicated closed funds and specialist brokers active as market makers (replicating the practice on AIM UK), together with the overall growing financial market uncertainty, are structural weakness factors for the stability of the market in 2016. 1

AIM Italia Facts

2015 AIM Italia Key Facts 74 AIM Italia companies, +30% vs yearend 2014

4.0

20 new comers in 2015 (vs 22 in 2014)

3.0

3 delistings

2.0

Total market cap €3.0bn, +43% vs yearend 2014 22% of the 2015 additional market cap attributable to acquisitions

Market Cap and number of companies listed on AIM Italia, 2009-2015

€bn

Unit

74 57

1.0

4 0.3

0.0

-2%

0.4

+13%

2009

2010

+73%

18

14

10

+39%

0.4 2011

0.5 2012

Total market cap (left)

+142%

60

+43%

36

80

40

3.0 2.1

20

1.2 2013

2014

2015

0

Listed companies (right)

Source: EnVent on public data, Borsa Italiana, Bloomberg

Funds collected in IPO on AIM Italia, 2009-2015 (€m) 300

€284m funds collected in IPO in 2015 (+35% vs FY2014) of which around 90% from newly issued shares (+35% vs FY2014) and 10% from vendor placing (+36% vs FY2014) Over €780m total proceeds from IPO since 2009

284 32

209 200

166

23

8 252 100

34

22 0

22

34

2009

2010

158

59

186

10

59 2011

Money raised

1 9 2012

2013

Vendor placing

2014

2015

Note: Money raised include funds collected by the companies from new issued shares. Vendor placing includes funds collected by existing shareholders from the sale of existing shares, including greenshoe option exercise. Both the figures include also funds collected in IPO by delisted entities. The comparability of above figures with previous publications may be impracticable due to a restatement in the representation of money raised and vendor placing. Source: EnVent on public data, Borsa Italiana, Bloomberg, companies ‘websites and Admission Documents

Further capital raises and Corporate bond issues on AIM Italia, 2009-2015 (€m)

Over €210m additional funds collected since 2009 through corporate bonds (55%) and further capital raises (45%)

80

71 62

60

53 27

Convertible bonds the most used alternative lending source (55% of subscribed amount) followed by mini bonds (29%) and traditional corporate bonds (16%)

40

57 34

27 20

35

27

14 0

2012

2013

Further capital raise

2014

19 2015

Corporate bond issue

Note: Further capital raises include rights issues, reserved rights issues and warrants exercise. Corporate bond issues include convertible, non-convertible bonds and mini-bonds. No further capital raises and corporate bond issues in 2009-2011. Source: EnVent on public data, Borsa Italiana, companies ‘websites and Admission Documents

1

AIM Italia Facts Market Statistics

2015 money raised by Financial and investment companies over doubled the money raised in 2009-2014 following to the listing of several SPACs For the first time since 2009, the Energy & Cleantech sector did not play a leadership role on the market Increase in money raised for Digital and Food & Beverage companies (respectively 17% and 8% of 2015 money raised in IPO)

Money raised in IPO of AIM Italia listed companies, 2009-2015: analysis by industry (€m) 300

242 200

138

154

132 4

34

128

120

100

104 0

Financial and Investment Companies

Energy & Cleantech

59

52

Digital

13

26

39

20 6 Food & Beverage

Media 2009-2014

7 52 Industrial

2015

32

23

16 16 Other

9 14 Consumer goods and services

Source: EnVent on public data, Borsa Italiana, Bloomberg, companies ‘websites and Admission Documents

Float in IPO of AIM Italia listed companies

Average float in IPO almost 22% (excluding SPACs)

Money Raised in IPO of AIM Italia listed companies 5-10 mln 29%

25-50%: 32%

10-25%: 56%

Under 5 mln 45%

Higher IPO float for Financials (excluding SPACs) equal to around 30%

Under 10%: 3%

10-15 mln 7%

Over 50%: 9%

Over 15 mln 19%

Source: EnVent on public data, Borsa Italiana, Bloomberg, companies ‘websites

Prevalence of small caps: 70% of companies with market cap below €50m at year-end 2015 Companies with market cap over €50m increasing from 23% in 2014 to 30% in 2015

Market Cap of AIM Italia listed companies at 31.12.2015 Under 10 mln 22%

Over 100 mln 8%

50-100 mln 22%

10-20 mln 24%

30-50 mln 13%

20-30 mln 11%

Market Cap of AIM Italia listed companies at 31.12.2015 by industry (€ m) Digital 24%

Food & Beverage 8%

Energy & Cleantech 17%

Financial and Investment Companies 14%

Source: EnVent on public data, Borsa Italiana, Bloomberg, companies ‘websites

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Media 8%

Industrials 12%

Other 11%

Consumer goods and services 6%

AIM Italia Facts Liquidity Analysis Value and volumes traded on AIM Italia, 2009-2015

€m

Significant growth of market liquidity, +117% and +122% in number and value of trades vs FY2014

400

AIM Italia velocity turnover of nearly 40% at year-end 2015, getting closer to reference stock indexes

200

Financials, Food & Beverage and Media the most traded stocks (velocity turnover at 50%)

0

Units

100,000

80,000

300

60,000

Higher turnover velocity for smaller caps ( €50m Mean

VELOCITY TURNOVER*

Tot. Volumes / Free Float

50,5% 37,2% 52,9% 22,4% 50,8% 24,0% 22,3% 48,8% 39,6%

95,5% 168,7% 241,8% 79,3% 180,3% 165,2% 208,1% 309,0% 167,5%

62,9% 48,6% 27,1% 19,0%

223,6% 219,8% 103,0% 108,0%

39,6%

167,5%

*Tot. Vol umes / Num. Ordi na ry Sha res , a vera ge FY2014-2015 Source: EnVent on publ i c da ta , Bors a Ita l i a na , Bl oomberg, webs i tes a nd Admi s s i on Documents

40,000 100

20,000

0

Value (left)

Trades number (right)

Source: EnVent on Borsa Italiana Monthly Update

Velocity turnover of companies listed on AIM Italia market vs companies listed on other Italian reference markets: 2015 80%

60%

40% 57.3% 20%

0%

39.6%

AIM ITALIA

SMALL CAP

48.7%

50.0%

MID CAP

STAR

Source: EnVent on public data, Borsa Italiana, Bloomberg, companies ‘websites and Admission Documents

AIM Italia index vs Italy and UK reference indexes, 1.07.2013-31.12.2015 180 160

AIM Italia index below Italy and UK reference indexes (-10% vs FY2014) Low liquidity, increasing volatility and the negative economic performance of some of the AIM Italia “blue chips” negatively affected the 2015 FTSE AIM Italia performance

Italia Small Cap

140 Italia All-Share 120

AIM UK All-Share

100

UK All-Share

80 60

AIM Italia

01/07/2013

01/01/2014

FTSE Italia All-Share

FTSE Italia Small Cap

Note: AIM Italia index launched on July the Source: EnVent on Bloomberg

3

01/07/2014

7th ,

2013

01/01/2015

FTSE AIM Italia

01/07/2015

FTSE UK All-Share

31/12/2015

FTSE AIM UK All-Share

AIM Italia Facts AIM Italia 2015 new listings

€m

Companies

Italian Wine Brands Mobyt DigiTouch Caleido Group Clabo Group Mondo TV Suisse Elettra Investimenti Cover 50 Bio Due Bomi Italia MASI Agricola Assiteca Piteco Capital For Progress 1 Giglio Group Glenalta Food H Farm Gambero Rosso

Blue Financial Communication Bridge Management

Business

Type

Date

Money Raised

Vendor Placing

Market Cap at listing

Float at listing

Wine production and distribution

Admission

29/01/2015

0.0

0.0

65.8

61.2%

Digital advertising

IPO

05/03/2015

4.5

0.0

30.6

14.7%

Digital advertising

IPO

16/03/2015

9.0

0.9

32.0

31.6%

Tour operators

IPO

24/03/2015

1.5

0.0

7.5

19.5%

Ice cream showcases

IPO

31/03/2015

7.4

0.0

20.9

33.1%

Admission

13/04/2015

0.0

0.0

26.0

11.3%

IPO

21/04/2015

4.3

0.8

22.3

22.5%

IPO

13/05/2015

7.4

13.9

81.8

26.1%

IPO

20/05/2015

4.0

0.0

39.6

10.1%

IPO

26/06/2015

11.0

1.5

41.9

34.1%

IPO

30/06/2015

20.0

10.3

147.9

20.5%

Insurance broking

IPO

27/07/2015

7.3

0.0

57.4

11.9%

Information technologies

IPO

31/07/2015

8.5

4.1

59.8

16.8%

IPO

04/08/2015

51.1

0.0

52.6

100.0%

IPO

07/08/2015

6.0

0.0

26.3

22.9%

IPO

10/11/2015

80.0

0.0

80.0

100.0%

IPO

13/11/2015

20.2

0.0

89.2

19.0%

IPO

23/11/2015

7.1

0.0

23.1

30.1%

IPO

11/12/2015

1.4

0.2

6.4

23.6%

IPO

16/12/2015

1.0

0.0

4.5

19.1%

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Production and distribution of TV series Production of electric energy and heat Fashion apparel Medical devices, cosmetics and nutritional supplements Logitics, warehousing and distribution of medical devices Wine Production and Distribution

SPAC - Special Purpose Acquisition Company TV Production & broadcasting SPAC - Special Purpose Acquisition Company Venture Incubator Food & Beverage publishing, events and education Publishing house of Blue Rating Group Financial consulting Refrigeration and air conditioning products Energy saving

Admission (Incorporation of 09/07/2015 Industrial Stars of Italy) Admission (Incorporation of GreenItaly1)

Source: EnVent on public data, Borsa Italiana, Bloomberg, websites and Admission Documents

Note: 2015 delistings: Microspore, Vrway Communication and HI Real

4

23/12/2015

AIM Italia Facts

2015 AIM UK Snapshot AIM UK listed companies, 1995-2015

1,800

1,044 listed companies as of December 2015, -5.4% vs FY2014 In 2015 the number of companies on AIM UK decreased: 61 new comers were offset by 121 delistings

1,694 1,550

1,399

1,400 1,200

800

524

600 400

0

1,293

1,195

1,143

1,021

1,000

200

Total AIM UK market capitalization at GBP73bn (vs GBP71bn in FY2014)

1,634

1,600

252

308

312

629

1,096 1,087 1,104 1,044

754

704

347

121 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: London Stock Exchange, AIM UK Market Statistics, Dec. 2015

IPOs/Admissions and Money raised on AIM UK, 1995-2015

GBPm

12,000

519

Since 1995 total money raised in IPO amounted to GBP41bn In 2015 there was a slowdown in the IPO market in sight of the UK General Election of May GBP1.2bn money raised in IPO in 2015, -55% vs FY2014

10,000

8,000

600

462

500

400

355 284

277

6,000

4,000

123

300

177

145 107

2,000

0

Units

75

160

162

200

114

102

102

90

71

99

118 61

36

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Money raised in IPO

Number of IPOs/Admissions

Source: London Stock Exchange, AIM UK Market Statistics, Dec. 2015

Further capital raises of AIM UK listed companies, 1995-2015

GBPm

12,000

9,603

10,000

Total further capital raises since 1995: GBP55bn 2015 further capital raises for GBP4.3bn (+32% vs 2014)

8,000

4,861

4,000

3,214

2,000

0

5,738

5,734

6,000

1,880

1,338 25

302

350

318

600

535

486

2,481

4,305

3,660 2,449

2,728

3,269

1,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: London Stock Exchange, AIM UK Market Statistics, Dec. 2015

5

100

0

AIM Italia Facts

Average daily value and shares traded on AIM UK, 1995-2015

GBPm

m

350

Average daily shares traded around 1,500m as of December 2015, +10% vs FY2014 Average daily value around GBP122m, -28% vs FY2014 42% value of shares traded on total market cap in 2015, vs 60% of FY2014

1,800

297

300 250

230

167

150

550 100

0

1,153

71

54 21

26 228

157

813 133 129

608

430

154 705

531

122

117

578

Average daily value (left)

800 600 400

383

19 14 10 8 8 26 27 84 22 98 111 4 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2

1,400

1,000

169

151 828

1,600

1,200

194

200

50

1,526 1,386

200 0

Average daily shares traded (right)

Source: London Stock Exchange, AIM UK Market Statistics, Dec. 2015

Financial industry remains the largest contributor with market cap of GBP17bn (23%)

Market Cap of AIM UK listed companies at 31.12.2015: analysis by industry Utilities 1%

Telecom 2%

Boom of Consumer Services and Health Care with market cap of respectively GBP12.3bn (+24% vs FY2014) and GBP10.8bn (+51% vs FY2014) Oil & Gas the worst performer in 2015, market cap dropped down by 39% vs FY2014 due to the share prices decline

Increase in the number of listed companies with market cap over GBP500m 45% of listed companies has a market cap between GBP100-500m (-5% vs FY2014) and approximately 30% over GBP500m (+5% vs FY2014) Changing of market cap distribution attributable to a substitution process where small companies are replaced by larger and well-established companies

Financials 23% Hi-Tech 9%

Consumer Services 17%

Health Care 15%

Oil & Gas 5% Basic Materials 5% Consumer Goods 8%

Industrials 15%

Source: London Stock Exchange, AIM UK Market Statistics, Dec. 2015

Number of AIM UK listed companies at 31.12.2015: analysis by industry Utilities Telecom 14 15 Consumer Services 117 Health Care 86

Market Cap of AIM UK listed companies at 31.12.2015: analysis by market value range (GBP m) 50-100 12%

Financials 189 Hi-Tech 113

100-250 22%

Oil & Gas 116

Consumer Goods 60

250-500 23%

Industrials 174

Basic Materials 160

Source: London Stock Exchange, AIM UK Market Statistics, Dec. 2015

6

25-50 8% 10-25 4% Under 10 2% Over 1.000 11% 500-1.000 18%

AIM Italia Facts

Glossary ADMISSION CAPITAL RAISE/INCREASE

CORPORATE BOND FLOAT

GREENSHOE OPTION

IPO

MARKET CAPITALIZATION/CAP

MONEY RAISED

SPAC (Special Purpose Acquisition Company)

VELOCITY TURNOVER VENDOR PLACING

VOLUMES WARRANT

Transfers and just listings from other markets

Money raised by a company through a right assigned to existing shareholders or reserved to new shareholders to underwrite additional new issued shares at a determined price Debt securities issued by a company

Ordinary shares available for trading on the market, owned by non-significant shareholders (stakes under 5% of share capital on AIM Italia) Also referred to as over-allotment option, it is granted by the Issuer to the Global Coordinator, giving the faculty to increase the size of the IPO by the sale of additional existing shares

Initial Public Offer: sale of ordinary shares of a private company on the equity capital market within the listing process on a stock exchange Total market value of 100% Equity of a company listed on a stock exchange

Funds collected in IPO by a private company from the underwriting of new issued shares

New company usually formed for the sole purpose of raising capital to identify and acquire a suitable business opportunity Ratio of total traded shares to total ordinary shares in a given period

Funds collected in IPO (or in other placement) by existing shareholders of a company from the sale of existing shares and from the Greenshoe option exercise Number of financial instruments traded in a certain period

Derivative financial instrument giving the holder the right to underwrite new issued shares of a company at a determined price within a certain time frame

7

AIM Italia Facts

DISCLAIMER

CONTACTS Franco Gaudenti Chief Executive Officer [email protected] [email protected]

This publication has been prepared by the Research & Analysis Division of EnVent Capital Markets Ltd (“EnVent Capital Markets”) with the purpose to convey selected information about the AIM Italia market, compared to the AIM UK market, to our clients, partners and our network of professional contacts. EnVent Capital Markets Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority (Reference no. 651385). EnVent Capital Markets does not intend to provide any recommendation about the capital market predictions and about the future results of analysed companies, but only a static description of AIM Italia trends observed in the reference period. It is not, under any circumstances, intended for distribution to the general public. Accordingly, this document is only being communicated to persons and residents in UK to whom it may lawfully be issued under The Financial Services and Markets Act 2000 and COBS 4.12 of the FCA’s New Conduct of Business Sourcebook. For residents in Italy, this document is intended for distribution only to professional clients and qualified counterparties as defined in Consob Regulation n. 16190 of the 29th October 2007, as subsequently amended and supplemented. No part of this document may be reproduced in any manner without the written permission of EnVent Capital Markets. This publication has been drawn up on the basis of public information provided by business information service companies (Bloomberg, S&P Capital IQ, Bureau van Dijk) and by other public sources (official websites, companies’ Admission Documents, Borsa Italiana website, London Stock Exchange website and press releases), on which EnVent Capital Markets has not performed an independent verification. Although EnVent Capital Markets makes every reasonable endeavour to obtain information from sources that it deems to be reliable, it accepts no responsibility or liability as to the completeness, accuracy or exactitude of information provided, nor regarding the data, analysis, comments and elaborations herein included. This publication does not represent to be, nor can it be construed as being, an offer or solicitation to buy, subscribe or sell financial products or instruments, or to execute any operation whatsoever concerning such products or instruments. This publication shall not in any case be used as basis of an investment decision by persons that, in case, will have to conduct independent research and analysis before taking any investment decision at their sole responsibility. The access to other information providers or a different analysis of available data may lead to observations even remarkably different from those contained in this publication. This document and its contents do not, and are not intended to, constitute, or form any part of, an offer for sale, invitation to subscribe for or purchase or otherwise acquire transferable securities within the meaning of sections 85 and 102B of the Financial Services and Markets Act 2000, as amended (“FSMA”) or according to Italian Legislative Decree no. 58/98 art. 1, clause 1, let. t), as subsequently amended and supplemented. The information does not represent any expression of negotiation willingness.

Paolo Verna Director – Head of Equity Capital Markets [email protected] [email protected] Luigi Tardella Partner – Co-Head of Research & Analysis [email protected] EnVent Capital Markets Limited 25 Savile Row – W1S 2ER London Via Barberini, 95 – 00187 Rome Phone +44 (0) 2035198451 +39 06 896841 [email protected]

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