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Zest S.p.A. Investor Presentation 2015

Sep 25, 2015

4354_rns_2015-09-25_44a48cb1-bde0-4825-94ea-e45a98b843c5.pdf

Investor Presentation

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LVenture Group* CAPITAL FOR GROWTH

INVESTING IN STARTUPS THROUGH A LISTED COMPANY

Luigi Capello - CEO

Lugano Small & Mid Cap Investor Day

25.09.2015

DISCLAIMER

  • The manager responsible for the drafting of financial documents, Francesca Bartoli says, $\bullet$ based on the provisions of the second paragraph of Art. 154-bis of Legislative Decree No. 58 of February 24, 1998 (TUF), the accounting information contained in this presentation correspond to the documentary results, books and accounting entries.
  • Some of the information enclosed in this document are futuristic, subject to risks and $\bullet$ uncertainties that could lead to differences.
  • Each estimate contained in this document is referred to 16 September 2015 and, any $\bullet$ underlying assumptions and circumstances or any data quoted may be subject to future changes. LVenture Group S.p.A. expressly disclaims and assumes no responsibility for inaccuracies or estimates or forecasts with respect to any use that third parties may make of such estimates or forecasts.
  • This document does not constitute an offer or a recommendation to purchase or sell financial $\bullet$ products and/or represents any form of financial service. Finally, this document does not constitute a public offer of financial products in Italy, as defined under art. Letter t 1 of TUF, $^{\prime}$ and in any other States or Country.
  • In addition to standard formats and indicators required by IFRS, this document contains $\bullet$ numbers or reclassifications and alternative performance indicators. The goal is to help users assess the best possible economic and financial performance of the group. However, these reclassifications or indicators cannot be used as a substitute for required data by IFRS standards.

LVenture Group*

INTERNATIONAL RANKING

CBINSIGHTS «The 2014 European Tech Report»

Most Active Venture Capital Investors in EU Tech: 2014

Source: bit.ly/TECH EU2014

LVenture Group*

LVenture Group operates on an international level in Venture Capital investing in «fast-growth companies» of the digital world

OUR MODEL

We maximize value creation by transforming early-stage startups into successful companies

POSITIONING

Our investments, along with hands-on involvement, enable and accelerate startups to access and expand on the global markets

ARBITRAGE OPPORTUNITY

Investing in Italy with attractive valuations and rapidly bringing startups into international markets with higher valuations

CURRENT BUSINESS MODEL

Entering at early stage with attractive valuations Example 18 Subset Surces and professional processes Example 1: Full support with an entrepreneurial approach ........ Small investments and diversified portfolio

THE ACCELERATOR

Work space: 2000 sqm inside Termini Central Station in Rome Acceleration Program: our Extreme Project Management (XPM) brings startups to market and revenue-generation in 5 months

THE ECOSYSTEM

EVenture Group*

OUR ACHIEVEMENTS

PORTFOLIO VALUATION & GROWTH

LVenture Group*

Source: our elaboration based on internal data

* The value is calculated on the basis of the market valuations of the startups that are part of the portfolio of LVenture Group and not under IFRS standards ** The overall pro quota increase is equal to $\epsilon$ 2.7 million that is attributable for $\epsilon$ 1.0 million to the increase of value of the startups in the portfolio and for € 1.7 million to new investments in those.

INVESTMENT CRITERIA & PORTFOLIO

LVenture Group*

PORTFOLIO

LVenture Group*

PORTFOLIO EVOLUTION EXITS & CAPITAL GAINS

Exit: after 5 years 60% of all Seed Investments assuming 5.45x CoC

SUMMARY BUSINESS PLAN 2015 - 2018

Consolidated
$(\epsilon 000's)$
2015E 2016E 2017E 2018E
Revenues 1,551 2,145 2,609 3,197
Operating Costs (2,259) (2,751) (2,938) (3,157)
EBITDA (708) (606) (329) 40
Write-off (535) (725) (1,144) (1,779)
EBIT (1, 321) (1, 438) (1,588) (1,863)
Capital Gains 634 2,394 3,815 5,070
Net Result (704) 936 2,207 3,149

LVenture Group*

Increasing revenue streams from complementary •• business units like corporate innovation service, DoLab School, etc...

....... Operating margin break-even will be achieved by 2018

..................................... liquidity events

FUNDRAISING

Further capital increase of €4.99m in 2015/2016 to pursue strategic goals

STRATEGIC GOALS

INVEST IN US

EVenture Group*

SHAREHOLDERS

PERFORMANCE ABOVE MARKET STANDARD

LVenture Group* CAPITAL FOR GROWTH

START UP YOUR FUTURE 20

Luigi Capello - CEO