Zest S.p.A. — Investor Presentation 2016

Sep 23, 2016

LVenture Group - A Scaling Tech Hub Luigi Capello - CEO

Lugano Small & Mid Cap Investor Day 23.09.2016

Disclaimer

• This presentation, its contents and any statement made in connection with it do not amount to - and cannot be construed as amounting to - any solicitation or other offer to sell or buy any security or financial instrument issued by LVenture Group, nor to a recommendation,

• Therefore, any investor contemplating purchasing securities or financial instruments issued by LVenture Group should make its own independent investigation and assessment with respect to the financial condition and affairs of the issuer, as well as its own appraisal of LVenture Group's creditworthiness, and it should carefully consider the risk involved in purchasing such securities or financial

• Any forward looking statement included in this presentation or provided in connection with it reflects management's current plans, views, estimates, projections and objectives. Actual results may differ materially from such expectations, as they relate to future events and circumstances which are beyond our control, including, amongst other things, internal, industry and external factors, such as general

• suggestion, advocacy or other marketing or similar effort of any investment in any securities.
• instruments.
• economic conditions. Any user of such information should not place undue reliance on such forward looking statements.
• reserved.
• By attending this presentation or otherwise accessing these materials, you agree to be bound by the foregoing limitations.

• This presentation, its contents and any statement made in connection with it have not been independently verified. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information provided. LVenture Group, its representatives, directors and employees are not (and cannot be held) liable, under any circumstance and for any reason, in relation to such information or any damage, loss or cost arising from its use or otherwise. LVenture Group is under no obligation to update or keep current the information contained in this presentation.

• This presentation, its content and any statement made in connection with it are strictly confidential to the recipient and may not be reproduced or redistributed, in whole or in part, or otherwise disseminated, directly or indirectly, to any other person. All copyrights are

The Italian Startup Opportunity

Low setting up costs

High quality human capital

Excellent know-how in design and creativity

Significant fiscal incentives

Our Corporate Structure

Listed on Italian Stock Exchange (MTA)

Minority stakes

Portfolio of 45+ digital startups

Joint Venture with LUISS University

The Startup Factory

PARTNER NETWORK OF BUSINESS ANGELS

Acceleration Program

Venture Capital J-Curve

Business Model

Professional Screening and Selection Process

Distinctive Competitive Advantages

Multiple deal sources and data-driven processes Entering at early stage with competitive valuations Small investments and diversified portfolio Full support with an entrepreneurial approach and a network of advisors

Investment Strategy

Arbitrage Opportunity

Series A (€mn)

International VC Funds

Competitive Advantage

Portfolio of 45+ Startup

Results

Startups in portfolio

30 months

Invested by third parties

Portfolio maturity

Strategic Goals

Exit Revenues

Maximization of startups' values at disposal

Increase portfolio activities and operating margin

Expansion

Create a leading international Startup Hub

Being part of an environment providing continuous interactions with major corporates Ecosystem

Ability to reach international investors

Startups as corporates' business partners Business Partnerships

International fundraising

Startup Business Partnerships

Provides SNAI the technological for-fun platform for sports betting

Partner for innovative telematics insurance services

Selected as reference platform for sentiment analysis and big data driven strategic solutions

RisparmioSuper has enabled with its technology the "click & collect'' strategy

Strategic partner for ENEL for safety at work related innovative solutions

The only Italian startup with a commercial and strategic partnership with Sky

International fundraising

US\$ 1,0 MN, Sept. 2016

BERLIN

LONDON

Expansion Strategy: Milan, Berlin

LVG Partnership with Rainmaking Loft: a base in Berlin

Rainmaking Loft is an international startup hub and co-working space based in Berlin

Over 3,500 square meters within Termini Station

The Startup Hub in Rome

MILAN

NEW

YORK

Further national and international expansion to come

ROME

Portfolio value

+54% Portfolio value vs. Capital invested

Total Revenues

Open Innovation Program

Aims at getting corporates involved in innovation thanks to specific and tailor made projects as Vertical Acceleration Programs and Open Startup Calls

The Accelerator provides the opportunity to rent working stations in its spaces, encouraging serendipity and business networking

Open Innovation Programs

Planning Android call with focus on Industry 4.0 and Digital Made in Italy

Selected to generate market validation for 2 projects selected by Enel

Working with Wind Startup Award

Active competition to select startups for the Acceleration Program

Organized networking events between top management and startups

Selected to expand the Open Innovation offer

Cyber Security call for talents, startups and research centers

Business Plan 2016-2019

€mn	2016E	2017E	2018E	2019E
Investments	2.4	3.0	3.3	3.3
Revenues	2.3	3.2	3.6	3.9
EBITDA	(0.7)	(0.6)	(0.3)	(0.2)
Net Income	(0.6)	(0.2)	1.7	4.2
Dividends	-	-	-	0.5
Exits Gains	0.7	1.5	3.2	6.0
Write-offs	(0.5)	(1.0)	(1.0)	(1.4)

Finalization of the first exit, several options under discussion

Continuous contamination with leading corporate partners

Partnerships with major hubs in EU (London) and USA (NY) to come

Exit Revenues Expansion

We Have Great Ambitions

77 Startups in Portfolio

(target 2019)

50%

Dividend pay-out

(target 2019)

5.45x Cash on Cash

(target in 6Y from investment for 36% of seed portfolio)

Fundraising

€4.0 mn Capital increase in July 2016

€13.9 mn Capital raised to date

€1.0 mn Fundraising

• Increase market liquidity: target €20 mn
• New resources to support both investment activities and diversified projects: Startup Hub, internationalization and Open Innovation process

Venture Capital

High Exp. Return

Diversified Portfolio

Listed Company

luigi.capello@lventuregroup.com