Zest S.p.A. — Investor Presentation 2018

Nov 19, 2018

LVenture Group A Scaling Tech Hub

Investor Presentation November 2018

Safe Harbour Statement

This document may contain forward-looking statements, which reflect current views of the management of LVenture Group, (the "Group" or "LVG") with respect to future events and financial and operational performance of the Company and its subsidiaries (the "Group").

These statements may include terms such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "outlook", "prospects", "plan", or similar terms. Forward-looking statements are not guarantees of future performance, rather, they are based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties.

Any reference to past performance or trends or activities of the Group shall not be taken as a representation or indicate performance, trends or activities will continue in the future. Actual results may differ materially from those expressed in or implied by such statements as a result of a variety of factors, including: the Group's ability to preserve and enhance the value of its startups; changes in the general economic environment; the Group's ability to successfully carry out its growth strategy; potential conflicts of interest due to director and officer overlaps with the Group's largest shareholders and other factors discussed elsewhere in this document.

Any forward-looking statements contained in this document speak only as of the date of this document and LVG does not undertake any obligation to update or revise publicly forwardlooking statements to reflect events or circumstances occurring after the date hereof. Further information concerning the Group and its businesses, including factors that could materially affect the Company's financial results, is included in the reports and filings with Borsa Italiana and CONSOB.

Agenda

1. Who We Are 2. Market Trends and Growth Opportunities 3. Financial Highlights and Objectives 4. Investment Opportunity 5. Appendix

AGENDA

Agenda Who we are

Knowledge and community drive our success model

• LVenture Group is among the few listed Venture Capital firms in the world
• LVG selects visionary entrepreneurs to shape the world and seed their potential in its ecosystem
• LVG accelerates them with smart capital and grows start-ups into companies ready to change the society, the culture and the economy

LVG accelerates and invests in technology startup, transforming them into scale-up companies to obtaining high returns

Our numbers and our sectors

~€34m Invested by third parties

Invested by LVG

~€12m

Health & Personal Care

Apps & Services

Big Data

Design & Fashion

Community

Entertainement

Food Tech

Internet of Things

Sectors

Success rate Accelerated Startups 80%

The Venture Capital J-curve

VC investment profile

8

Acceleration Program

Applications per year

2-3%

Acceptance rate

5 months

Duration of each batch

Standard deal / 9% + convertible note

Revenues > 0

Minimum target required

80%

Success rate @ Seed

New international co-investor based in Singapore

*Additional resources for all the accelerated Startups from December 2018

Open Innovation

Management Team

Creating value investing in the best digital Startups

OUR VISION

We use a "hands on" approach to support the best Start-ups in the growing digital ecosystem. We create value by transforming early stage Start-ups into successful Scale up companies

To achieve an international leadership position in the Accelerator and VC ecosystems through high capital gains from exits, providing value creation to our shareholders

12

OUR GOAL

AGENDA

Agenda Market Trends and Growth Opportunities

VC investment landscape

Source: Annual European Venture Capital Report 2017 – Q2 2018 Dealroom

Record investments in Startups in Italy in 2018 – 2x the 2017 amount

Why invest in Italian startups?

Newcomers are exploiting the opportunity

• US venture capital Endeavor Catalyst looking to launch a new US\$5–10m fund in Italy
• Italian listed utility Iren launched a VC unit to invest €20m in the Cleantech Ideal conditions for early stage Start-ups
• Digital share of GDP continues to grow
• In Italy investors can rely on high qualified professionals with excellent knowhow in technology and creativity, while the cost of setting up a Start-up is still lower vs other European countries
• This scenario provides the opportunity to invest with competitive valuations and rapidly scaling Start-ups

New appetite for the Italian landscape

LVenture, a European leader

#1 in ITALY #2 in EUROPE

AGENDA

Agenda Financial highlights and objectives

Key highlights

LVG Portfolio growth* (€m)

€1.7m

Invested as of 30.09.2018 Net assets (€12.8m at 31.12.17)

€13.7m

Cumulated value of select Startups**

*NAV calculated following the Alternative Performance Indicator "IAP" based on startups post money value as of 30.06.2018; ** Select Startups as detailed in slide 20 - NAV calculated on IAP as at H1 2018

Note: Following to the new accounting principles IFRS/ IAS, starting from 2018 all the variations occurring at portfolio level (revaluations / devaluations) are accounted for in P&L below EBITDA ('Fair Value Revaluation / Devaluation')

• Continued investments in the most promising Startups – additional capital increase for

• Soundreef; new round of investments for Vikey
• New exit Baasbox
• Finalized a significant partnership with Facebook
• Strengthened the open innovation business and the corporate structure

Key operational highlights at Q3 2018

Key select portfolio

Manet is an innovative solution for hotels, b&bs and their guests designed to revolutionize hospitality and the whole travel experience. It combines smartphones with a web dashboard operations.

Codemotion is an event format and a digital platform that connects developers with corporates. It is the pioneer of Hackathons events in Italy and one of the European leaders.

Gamepix is an online platform that publishes and promotes HTML5 videogames. It has been one of the first companies in the world to specialize in HTML5 games.

Soundreef is a digital music copyright and royalties management platform. Soundreef came in as the disruptive alternative in the market by combining innovative technology with personal customer service.

Insoore is changing the way insurance companies operate their claims management. It's a platform that drastically reduces their costs by connecting the companies to users paid to provide realtime photo-documentation of a vehicle.

Cash	Last Portfolio	Cash
Invested	Value	Invested
€398k	€1.29M	€160k

Last Portfolio Value €563k

Cash Invested €310k

Last Portfolio Value €1.83M

Cash Invested €350k

Last Portfolio Value €0.75M

Cash invested €315k

Value €0.97M

• ~ 3k active smartphones

• ~ 3k hotels and b&B
• Partnerships with Samsung and Vodafone.

• 100k publishers. • 300+ games.

• 110M+ users

• 100+ corporate partnership

• +28k developers

• ~ 10 European conferences a year

• 25k songwriters & publishers worldwide -11k in Italy

• Operations in 20 countries

IAP ~€17-19M IAP ~€6.5M IAP ~€9M IAP ~€7.5M IAP ~€7.8M

NAV calculated following the Alternative Performance Indicator "IAP" as of H1 2018

2018 2019

Strong revaluations expected in the next 24 months driven by large investment rounds

Significant pipeline of exit expected, creating value for all the shareholders

AGENDA

Agenda Investment opportunity

• Capitalizing on digital sector growth and market dynamics

Investment Opportunity - The Scaling Tech Hub

• Stable core ownership and sound balance sheet supported by
• Strong management team, solid industry credentials with a clear vision

Agenda Appendix

Key figures at Q3 2018

Note: Following to the new accounting principles IFRS/ IAS, starting from 2018 all the variations occurring at portfolio level (revaluations / devaluations) are accounted for in P&L below EBITDA ('Fair Value Revaluation / Devaluation') – 2017 data as restated

KEY DATA FY 2017 30/09/2017 30/09/2018

Revenues		1.67	2.33
EBITDA		-0.74	-0.62
EBIT		-0.15	-0.07
Net Income / Loss		-0.14	-0.16
Total Investments	2.6	1.8	1.7
NFP	-0.4	-0.7	-0.8

BP 2018-2021

(*) Due to the new accounting principles IAS / IFRS, starting from 2018 all the variations occurring at portfolio level (revaluations / devaluations) will be reported in the P&L statement below the EBITDA

(**) data not yet available

€M	2016 A	2017 A	2018 E	2019 E	2020 E	2021 E
Investments	2.3	2.6	3.0	3.2	3.3	3.5
Revenues	1.7	2.4	3.5	4.3	4.9	5.5
EBITDA	(1.0)	(0.9)	(0.5)	(0.1)	0.1	0.3
Write-offs(*)	(0.7)	(0.4)	(0.6)	(0.7)	(0.8)	(1.0)
Revaluation(**)	-	-	1.2	NA	NA	NA
Exit Gains	0.1	-	0.4	1.6	5.1	8.6

Contact Us

PHONE

+39 06 4547 3124

EMAIL

investor.relations@lventuregroup.com

WEBSITE

lventuregroup.com