Zest S.p.A. — Investor Presentation 2016

Mar 1, 2016

Looking Forward

01.03.2016

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

Who We Are

• LVenture Group is one of the few listed Venture Capital operators in the world
• Based in Rome with an integrated acceleration and investment approach
• More than 1.5k investment proposals analyzed yearly

The Venture Capital Business

Other Revenues

MICRO SEED	SEED		ACCELERATION	SCHOOL
Investment of €80k in every startup through LUISS ENLABS Acceleration program	Up to €250k investment in startups exiting the acceleration program or other startups selected from the market		Offering LUISS ENLABS services to third parties	Courses for corporates and privates via DoLab School
			CO-WORKING	OPEN INNOVATION
			Events and desks or offices rented to startups	Fees from Open Innovation Programs for corporates

The Team

• Senior team with a cumulated experience in the financial capital markets of over 100 years
• Combined skills and a positive entrepreneurial track record
• High reputation, strong and extensive networks

Current Business Model

LVenture Group combines both financial and entrepreneurial expertise in the micro seed and seed segment thanks to its integrated model with a startup accelerator

Arbitrage Opportunity

Investing in Italy with competitive valuations and rapidly scaling startups to international markets with higher valuations

Competitive Advanteges

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

High Return Rates: early-stage investment

The Ecosystem

• Thanks to its activities and results, LVenture Group has managed to create a dynamic ecosystem
• Interactions and synergies within the ecosystem are essential for the growth and development of startups
• LVenture Group's unique ecosystem relies on the strength of a network of exceptional stakeholders:
• Investors (business angels and VCs)
• Corporates
• Universities
• Advisors
• Partners & Sponsors
• Institutional bodies
• …

Estensive Corporate Network

Our ecosystem is engaging an increasing number of corporates seeking to get involved in innovation

A Fast Growing System

Capital raised by startups after the Acceleration Program

In 36 months: 27 startups accelerated by LUISS ENLABS

23 startups raised over €9m (more than 60% from third party investors)

Startup Investment Criteria

Market: fast growth & international

LVenture Group is a seed investor in digital tech startups with global markets and with a replicable and scalable business model focused on B2B sectors

Investment Activity

Over the three years of activity the investment trend has shown an annual growth rate that exceeds 90% and the overall amount invested to date is of over €5 million

Startup Investments

• Micro-seed Investment: €80k in startups participating to the Acceleration Program and €30k for the most promising startups participating to third parties' programs
• Follow-on Investment: average amount of €63k
• Seed Investment: average amount of €144k

Portfolio

Accelerated by LUISS ENLABS (chronological order)

33 startups in the portfolio 23 of which are from LUISS ENLABS Acceleration Program: Portfolio @ cost: ~ €5m and an average lifetime of 2.5 years

Portfolio – Revenues

Total Revenues (# of startups)	2013 A	2014 A	2015 F	Performance
Vintage 2011 (4)	1,242	1,615	2,665	2.15x
Vintage 2012 (4)	85	110	229	2.69x
Vintage 2013 (10)	321	1,295	2,405	7.49x
Vintage 2014 (6)	-	106	830	7.83x
Vintage 2015 (9)	-	-	897	N.A.

Startups founded in 2011 and 2012 – entering LVG's portfolio in 2013 – have more than doubled the revenues performance rate in two years (2013-2015)

Startups which received an investment by LVG in 2013 have so far registered a revenues performance rate of 7.49, while those included in the «Vintage 2014» achieved the same result within a year

The quality of LVenture Group's investments has progressively improved over the years, allowing the registration of increasingly positive performance rates

Filo

Filo is a small device which helps to keep important things under control

Soundreef

Soundreef collects, tracks and pays royalties to copyright holders of music

Tutored

Tutored is an online hub where students can find a wide range of tools and resources

Strategic Goals

Exit Revenues Realize the first exit of a portfolio startup

Achieve the sustainability with a positive operating margin

Expansion Create the Startup Hub and

international connections

The core of the strategic business plan is the achievement of three goals which are essential to deliver positive results

LVenture Group is able to pursue the exit of its portfolio companies (at an expected cash multiple of 5.45) thanks to the support of the ecosystem and the network of qualified advisors with corporate experience

Revenues

Expected strong revenue increase from education programs and consulting services, especially acceleration programs for third parties

Expansion

Network Gathers the world's most respected organizations that support the startup industry all around the globe including 75 of the top accelerators and organizations in the startup sector, with offices in more than 100 cities around the world

Further national and international expansion to come Milan London New York City

Expanding the physical hub in order to create the Startup Hub to engage more corporates and building connections abroad to foster an international network

Fundraising

• Increase market liquidity: projected market cap of €20m
• New resources to support both investment activities and diversified projects: Startup Hub, internationalisation and Open Innovation process

LVenture Group stock is a way to invest in a high growth sector combining a diversified VC portfolio with the liquidity of a tradeable security

Via Giovanni Giollitti 34 Roma

lventuregroup.com

comunicazione@lventuregroup.com