MID SMALL IN MILAN - UBI BancaS_2019... · Company profile Established in 1982 by some professionals from the insurance sector, Assiteca is now the largest Italian independent insurance

MID & SMALL in Milan, 19 November 2019

1 Servizio Studi – Equity Research

MID & SMALL IN MILAN

19 November 2019 - Palazzo Mezzanotte





Summary

Company description and hot topics

Aeffe 4 Molmed 40 Assiteca 6 Mondadori 42 Capital for Prograss 8 Neodecortech 44 Carel Industries 10 Openjobmetis 46 Coima Res 12 Piteco 48 Comer Industries 14 Prima Industrie 50 Cyberoo 16 Sabaf 52 Equita 18 Salcef Group 54 Eurotech 20 Shedir Pharma Group 56 Expert System 22 Sirio 58 Fiera Milano 24 SIT Group 60 GPI 26 TAS Group 62 Grifal 28 Tinexta 64 IGD – SIIQ 30 Triboo 66 La Doria 32 TXT Group 68 LUVE Group 34 Unieuro 70 Lventure Group 36 WIIT 72 MailUp 38 Zignago Vetro 74

Disclaimer 76

Team 78



AEFFE MARKET PRICE: EUR1.63

Apparel/Accessories

Data

Shares outstanding (m): 107.4

Market Cap. (EURm): 175.2

Enterprise Value (EURm): 215.1

Av. Daily Trad. Vol. (m): 0.251

Reuters/Bloomberg: AEF.MI AEF.IM

52-Week Range (EUR): 1.3 3.0

Source: FactSet

Performance

1m 3m 12m

Absolute 17.1% 6.0% -30.1%

Rel. to FTSE IT 10.9% -10.9% -51.9%

Graph Area Absolute/Relative 12 M

Source: FactSet

Graph Shareholders’ Structure

Source: Company data

Hot Topics What king of growth rate and marginality should you expect going forward?

Which is the weight of e-commerce on total sales and what are future expectations?

What is a normalized level of CAPEX/Sales?

Buyback program: how’s going and what is its strategic goal?

Company profile

Aeffe Group operates worldwide in the fashion and luxury goods sector and is

active in the design, production and distribution of a wide range of products that

includes prêt-a-porter, footwear and leather goods. Its own-label brands include “Alberta Ferretti”, “Philosophy” “Moschino” and “Pollini”, while licensed brands include “Blugirl Folies”, “Cedric Charlier” and “Jeremy Scott”. Moschino

generates 72% of total sales, Alberta Ferretti 15% and Pollini 10%. In terms of distribution channels, wholesale represents 72% of revenues, mono-brands stores are 248. Italy is the main market (49% of revenues), followed by rest of Europe

(23%) and North America (5%).

5-year historical trend of revenues and EBITDA

Recent developments

In 9M19 growth of revenues was moderate (+1.4% YoY to EUR269 million, +1.7% ex forex) as a consequence of a weak 2Q19 recorded by wholesale channel (-14%

YoY in 2Q). Investments in R&D and personnel hurt marginality with EBITDA ex IFRS closing at EUR33.8 million (-8.9% YoY) and net profit at EUR13.2 million (-37% YoY). Net debt was EUR42.2 million. 2019 is expected to close with flattish

sales and EBITDA margin in line with 9M19. Recently, Mr Secchi was appointed as new general manager of Moschino.

SWOT Analysis

Strengths Weaknesses

Highly-diversified portfolio of owned brands

Positive trend in medium/high-end fashion market

Prime location of its network

High exposure to domestic market

High dependence to wholesale distribution

Disappointment in growth projections after weak F/W19 season

Opportunities Threats

Roll-out of new mono-brand shops

E-commerce growth

Brands extension

Risk of economic slowdown

Potential change in consumer’s attitudes

Deterioration of existing relationships with indirect distributors

1,000

2,000

3,000

Aeffe FTSE Italia All-Share

Fratelli Ferretti Holding; 37,0%

IM Fashion; 24,0%

Treasury; 5,0%

Free float; 34,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

0

50

100

150

200

250

300

350

400

2014 2015 2016 2017 2018

Sales EBITDA Adj. % margin



AEFFE

Income Statement Financial Ratios

(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 352.0 345.3 358.4 375.5 ROE 10.7% 6.8% 9.1% 9.4%

EBITDA 43.3 41.2 45.6 50.6 Net Fin. Debt / Equity (x) 0.2 0.2 0.1 0.1

EBITDA margin 12.3% 11.9% 12.7% 13.5% Net Fin. Debt / EBITDA (x) 0.7 1.0 0.6 0.4

EBIT 29.6 23.2 28.2 32.9 Capex / Sales 2.2% 6.1% 4.2% 4.0%

EBIT margin 8.4% 6.7% 7.9% 8.8% Pay Out Ratio 0.0% 11.8% 18.8% 19.0%

Profit before taxes 28.7 21.7 27.2 31.5

Taxes -12.0 -9.8 -10.8 -11.4

Net Income 16.7 11.9 16.4 20.1

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0.16 0.11 0.16 0.19

Growth Rates DPS 0.00 0.01 0.03 0.04

(EURm) 2018A 2019E 2020E 2021E BVPS 1.50 1.49 1.80 2.13

Growth Group Net Sales 37.8% -1.9% 3.8% 4.8%

Growth EBITDA -15.0% -4.8% 10.7% 11.0%

Growth EBIT -10.4% -21.8% 21.6% 16.6%

Growth Net Profit -1.4% -28.8% 37.5% 22.8% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 10.2 14.4 10.2 8.4

EV/CE 1.1 1.0 1.0 0.8

Balance Sheet P/BV 1.09 1.10 0.91 0.77

(EURm) 2018A 2019E 2020E 2021E Dividend Yield (%) 0.0% 0.8% 1.8% 2.2%

Capital Employed 195.9 215.3 206.5 232.0 EV/Sales 0.80 0.62 0.56 0.52

Shareholders’ Equity 164.6 175.4 180.0 213.0 EV/EBITDA 6.5 5.2 4.4 3.8

Net Financial Debt / (Cash) 31.3 39.9 26.5 19.0 EV/EBIT 9.6 9.3 7.2 5.9

Source: Company data, FactSet 2018 Stock Market Ratios based on average 2018 price



ASSITECA MARKET PRICE: EUR2.34

Financials

Data





Reuters/Bloomberg: ASSI.MI ASSI:IM


Source: FactSet

Performance

1m 3m 12m

Absolute -2.5% 10.4% -1.7%

Rel. to FTSE IT -8.7% -6.5% -23.4%


Source: FactSet



Hot Topics In August, Tikehau Capital entered into the share capital of Assiteca with a

minority but significant 23.43% stake for EUR25 million. What is the role of the new shareholder in the Group’s main decisions?

In the FY18/19 results press release, it is stated that the recent acquisitions and the newly-established Swiss company will provide additional EUR4 million to next financial year top line and will have a positive effect on

EBITDA. Could you give a hint about the expected EBITDA margin?

The company has already identified some potential M&A targets (in Italy

and Spain) and is carrying out the due diligence process. Could you anticipate if these acquisitions will be focused on the traditional brokerage business or they will concern innovative solutions?

Company profile

Established in 1982 by some professionals from the insurance sector, Assiteca is

now the largest Italian independent insurance broker and the fourth largest group

in Italy based on the amount of revenue and brokered premiums. The company was listed in the Milan Stock Exchange - AIM segment in July 2015.

From the end of 2017, Assiteca turned from a pure brokerage player into a

consultive broker, adopting an innovative approach to enterprise risk

management based on specific consulting services aimed to integrate the offer of insurance solutions with internal risk management tools.

From a geographical perspective, since its foundation the Group developed a

growth program based on regional penetration, through the acquisition or establishment of local companies, leading to the current 20 Italian branches.

Regarding abroad markets, the company can count on 2 offices in Spain (Madrid and Barcelona) and 1 office in Switzerland (Lugano), moreover the collaboration with EOS RISQ and the partnership with Lockton Global and Gallagher Global

Alliance grants Assiteca a worldwide presence.


Recent developments

Assiteca reported positive FY18/19 (June 18 - June 19) results, showing a

significant growth of top line, EBITDA and net profit. Gross Revenues increased

from EUR67.4 million in Jun-18 to EUR70.7 million in Jun-19 (+5.0% growth) thanks to the improvement of both clients’ portfolio and services offered, pushing up Net Revenues to EUR63.7 million. Moving to the operating results, EBITDA

rose to EUR11.0 million (from EUR9.9 million in FY17/18), implying a 15.6%

margin, while EBIT reached EUR9.6 million (from EUR8.7 million in FY17/18), corresponding to 13.5% a margin (on gross revenues). Going down to the bottom line, net result was EUR5.4 million, showing an impressive 18.1% growth. As for

the balance sheet, Net Debt kept broadly stable at EUR23.3 million (vs. EUR23.7 million in 17/18), that brought to a Net Debt/EBITDA ratio of 2.1x in Jun-19. In August, Tikehau Capital acquired a 23.43% minority stake in Assiteca for around

EUR25 million through a reserved capital increase, becoming the second largest shareholder (behind the founder Luciano Lucca at 60.38%). Given these resources and the moderate Net Debt/EBITDA ratio, the Company is currently carrying out

the due diligence process on some significant acquisitions (in Italy and Europe).

SWOT Analysis


Solid position in the Italian landscape (largest independent ins. broker)

Collaboration and partnership with international insurance brokers

High visibility of top line (+EUR4 million in 19/20 for recent acquisitions)

Extremely low liquidity of shares

Slow but steady margins decline in traditional brokerage market

High BoD compensation (EUR2.9 million in FY18/19)


Strong company commitment towards external growth opportunities (fostered by the consolidation process in insurance brokerage market)

MTA listing (planned by 2022 but anticipated if possible)

Rumors on potential offers to acquire Assiteca

Competition from large-size players (Aon, Marsh, Willis)

1,800

2,000

2,200

2,400

2,600

2,800

3,000

Assiteca FTSE Italia All-Share

Founder; 60,4%

Tikehau Capital ; 23,4%

Free float; 16,2%

12,5%

13,0%

13,5%

14,0%

14,5%

15,0%

0

20

40

60

80

2014 2015 2016 2017 2018

Sales EBITDA % margin



ASSITECA


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 67,4 71,1 73,4 ROE 18,6% 20,1% 19,5%

EBITDA 9,9 11,2 12,2 Net Fin. Debt / Equity (x) 1,0 0,7 0,4

EBITDA margin 14,7% 15,7% 16,6% Net Fin. Debt / EBITDA (x) 2,6 1,9 1,2

EBIT 8,7 9,8 10,6 Capex / Sales 1,6% 1,0% 0,9%

EBIT margin 12,9% 13,8% 14,5% Pay Out Ratio 50,0% 40,0% 40,0%

Profit before taxes 7,3 8,8 9,7

Taxes -2,7 -3,0 -3,3

Net Income 4,6 5,8 6,4

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,14 0,18 0,20

Growth Rates DPS 0,07 0,07 0,07

(EURm) 2018A 2019E 2020E 2021E BVPS 0,58 0,67 0,77

Growth Group Net Sales 4,0% 5,6% 3,3%

Growth EBITDA 11,2% 12,9% 8,9%

Growth EBIT 42,9% 12,6% 8,2%

Growth Net Profit 31,9% 25,1% 11,3% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 16,7 13,0 11,7

EV/CE 2,5 2,4 2,4

Balance Sheet P/BV NA 3,48 3,03

(EURm) 2018A 2019E 2020E 2021E Dividend Yield (%) 3,0% 3,0% 3,0%

Capital Employed 50,2 49,7 47,0 EV/Sales 1,9 1,7 1,6

Shareholders’ Equity 24,8 28,7 33,0 EV/EBITDA 12,7 10,8 9,4

Net Financial Debt / (Cash) 25,4 21,0 14,0 EV/EBIT 14,4 12,3 10,7




CAPITAL FOR PROGRESS Single investment MARKET PRICE: EUR7.4

SPAC

Data





Reuters/Bloomberg: CFP2.MI CFP2 IM


Source: FactSet

Performance

1m 3m 12m

Absolute 12.1% -15.9% -20.4%

Rel. to FTSE IT 5.9% -32.8% -42.2%


Source: FactSet



Hot Topics It will be interesting to understand how the growth plan will adapt to the

capital raised and which options are the most likely ones;

From a CFPSI shareholder point of view, it is interesting to understand

which kind of “protections” are envisaged in the business combination agreement (drag-along clauses? Anti-dilution, etc.);

It will be useful to discuss Copernico financials as envisaged in the company business plan;

It will be fair to discuss what will happen to CFPSI if the deal is not approved by its shareholders.

Company profile

CFPSI is a listed vehicle dedicated exclusively to an investment in the form of a

Club Deal in Copernico Holding S.p.A. with the aim to support the growth

envisaged by the target.

Founded in 2016 and headquartered in Milan, Copernico operates as a provider

of work spaces, office spaces and other business services. Copernico offers a wide range of membership options to access its network, as well as an array of

benefits and services specifically designed to meet clients’ needs and enhance their employees personal well-being. The company operates in 4 cities (Milan, Rome, Turin and Brussels) with 13 buildings. It plans to expand its operations

both in current cities served (Rome and Milan) and by adding new regional capitals with the aim of creating a territorial network. The plan will be tailored to the amount of capital raised.


Recent developments

On 8 July 2019, CFPSI invested EUR3.5 million in Copernico at a price of EUR21 at a pre-money valuation of around EUR34 million and in fact obtained a 8.7%

stake. Copernico expressed its commitment to listing on the AIM segment by the end of 2021. According to the agreement announced in July 2019, CFPSI has the option to invest up to EUR15 million by subscribing both special class shares (B

shares) up to EUR7.5 million and tranches of a convertible bond up to EUR7.5 million.

On March 2019 Copernico and StartupItalia signed a partnership to create a new

hub dedicated to innovation.

In June 2018 Copernico signed a partnership with BNL and BNP Paribas called

“Smarter Together” and launched their first co-branded space of coworking in Rome

SWOT Analysis


Strong brand, well recognized;

Experienced management team with high knowledge of the market;

Solid relationships with the main real-estate owners.

Business model is based on new funding;

Business model to be tested in small cities;

Cyclical investments needed to restyle buildings and facilities;


Increasing penetration of smart-working;

Legislation on smart-working is quite recent;

Increasing ancillary services sales.

The market is already quite competitive;

New and larger new entrants may arise;

Transfer to customers of real estate prices/rents increases is not a given.

6,0008,000

10,00012,000

Capital For Progress Single InvestmentSpAFTSE Italia All-Share

Gefira srl; 2%

Bolengo Gianluca; 1%

Free float; 95%

Fondanzione Lambriana; 1%

Pagani Pietro; 1%

20,0%

25,0%

30,0%

35,0%

40,0%

-5

0

5

10

15

20

25

2017 2018




CAPITAL FOR PROGRESS Single investment


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 20,8 24,5 32,0 41,5 ROE -633,3% -73,9% -37,5% -146,2%

EBITDA -2,1 0,1 1,0 0,1 Net Fin. Debt / Equity (x) 9,0 1,5 0,9 3,6

EBITDA margin -10,1% 0,4% 3,1% 0,2% Net Fin. Debt / EBITDA (x) -2,6 35,0 3,0 47,0

EBIT -3,6 -2,3 -1,3 -2,3 Capex / Sales 3,4% 4,1% 8,1% 5,1%

EBIT margin -17,3% -9,4% -4,1% -5,5% Pay Out Ratio 0,0% 0,0% 0,0% 0,0%

Profit before taxes -3,8 -2,4 -1,7 -2,7

Taxes 0,0 0,7 0,5 0,8

Net Income -3,8 -1,7 -1,2 -1,9

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS nm nm nm nm

Growth Rates DPS 0,00 0,00 0,00 0,00

(EURm) 2018A 2019E 2020E 2021E BVPS nm nm nm nm

Growth Group Net Sales 50,7% 17,8% 30,6% 29,7%

Growth EBITDA 16,7% -104,8% 900,0% -90,0%

Growth EBIT 16,1% -36,1% -43,5% 76,9%

Growth Net Profit 18,8% -55,3% -29,4% 58,3% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E nm nm nm nm

EV/CE nm nm nm nm

Balance Sheet P/BV nm nm nm nm

(EURm) 2018A 2019E 2020E 2021E Dividend Yield (%) nm nm nm nm

Capital Employed 6,0 5,8 6,2 6,0 EV/Sales

nm nm nm nm

Shareholders’ Equity 0,6 2,3 3,2 1,3 EV/EBITDA nm nm nm nm

Net Financial Debt / (Cash) 5,4 3,5 3,0 4,7 EV/EBIT nm nm nm nm




CAREL INDUSTRIES MARKET PRICE: EUR13.26

HVAC, Refrigeration

Data


Market Cap. (EURm): 1,326.0

Enterprise Value (EURm): 1,392.9


Reuters/Bloomberg: CRLI.MI CRL IM

52-Week Range (EUR): 8.76 15.16

Source: FactSet

Performance

1m 3m 12m

Absolute 6,1% 26,3% 45,2%

Rel. to FTSE IT 6,2% 16,9% 21,8%


Source: FactSet



Hot Topics Given the macroeconomic slowdown in Europe and in Italy, understanding

the impact on refrigeration and air conditioning applications could be a key item for addressing 2020-21 prospects.

The company grew significantly last year thanks to two main acquisitions. In our view, quantify potential cost and cross-selling synergies will investors.

Regulatory evolution, in particular on refrigerants, is key to HVAC development.

Company profile

Carel Industries is one of the leaders in the design, production and marketing of

technologically advanced components and solutions to achieve high energy

efficiency in the control and regulation of equipment and systems in the air conditioning ("HVAC") and of refrigeration. Carel Industries is focused on some vertical market niches characterized by extremely specific needs, to be satisfied

with dedicated solutions developed in depth on these needs, as opposed to mass markets. With >1,300 employees, the Group designs, produces and markets hardware, software and algorithmic solutions in its 7 production sites in Italy and

abroad (China, the US, Brazil and Croatia). HVAC is the Group's main market,

representing 65.9% of the Group's revenues in 9M19, while the refrigeration market represented 32.6% of sales. In Dec-18 Carel finalized two acquisitions for EUR78.3 million: Recuperator, which produces air-to-air heat exchangers, and

HygromatiK which produces humidifiers for industrial, commercial and wellness fields. The company was listed in June 2018 at EUR7.2 per share.


Recent developments

Consolidated revenues reached EUR247.7 million in 9M19, or +18.9% compared to 9M18 (+17.9% based on constant exchange rates) thanks to the organic

contribution of all the geographic areas (particularly the US which was up 20%) and the consolidation of Hygromatik and Recuperator. Excluding them, the growth reached +6.0%. HVAC division was up 29% (+7.7% organically) and Refrigeration

sector was up 4.4%. EBITDA reached EUR49.6 million, up 29.6%, thanks to the lower non-recurring costs for the listing and for M&A, which in the first nine

months of 2018 weighed in at about EUR5.4 million, the contribution of

Hygromatik and Recuperator (EUR5.7 million) and the positive effect deriving from the adoption of IFRS 16 (EUR2.9 million). Excluding the non-recurring costs, the margin was 20.3% (vs. 20.9%). During the year, Carel Industries appointed a

new Managing Director, completed its two-year plan to expand the Company's production footprint and acquired Enersol, a historic Canadian distributor of Carel products based in Quebec. The company guided for a mid-single digit organic

growth while profitability could be slightly lower than that recorded in the first nine months of the year as a result of operating leverage.

SWOT Analysis


Leading position in HVAC products

Strong focus on product innovation (R&D at 6% of sales in 2015-18)

Wide geographical diversification

Limited growth of HVAC and refrigeration markets

Limited room to increase margins

Competition from low-cost local players


Extraordinary capex plan to increase production capacity

Potential new acquisitions

Cost and cross-selling synergies stemming from the new acquisitions

Deterioration in macro-economic scenario , Western Europe and China

Forex fluctuations

Technological and regulatory risk

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16,000

Carel FTSE Italia All-Share

Luigi Rossi

Luciani; 36,2%

Luigi Nalini; 23,6%

CRMC; 8,0%

Free float; 32,2%

17,5%

18,0%

18,5%

19,0%

19,5%

20,0%

20,5%

0

50

100

150

200

250

300

2015 2016 2017 2018




CAREL INDUSTRIES


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 280,2 332,9 356,9 381,0 ROE 32,3% 31,6% 25,5% 23,5%

EBITDA 55,2 68,4 73,6 79,7 Net Fin. Debt / Equity (x) 0,5 0,4 0,1 0,0

EBITDA margin 19,7% 20,5% 20,6% 20,9% Net Fin. Debt / EBITDA (x) 1,1 0,7 0,3 -0,1

EBIT 46,1 54,4 59,3 64,5 Capex / Sales 6,6% 6,3% 4,2% 3,9%

EBIT margin 16,4% 16,3% 16,6% 16,9% Pay Out Ratio 25,9% 31,0% 32,6% 32,0%

Profit before taxes 41,5 53,7 58,8 64,2

Taxes -6,7 -11,7 -12,9 -14,1

Net Income 34,8 42,0 45,9 50,0

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,38 0,42 0,46 0,50

Growth Rates DPS 0,10 0,13 0,15 0,16

(EURm) 2018A 2019E 2020E 2021E BVPS 1,18 1,49 1,80 2,13


Growth EBITDA 8,5% 23,8% 7,6% 8,4%

Growth EBIT 18,1% 9,0% 8,8%


(x) 2018A 2019E 2020E 2021E

P/E 34,7 35,2 31,6 27,4

EV/CE 7,9 6,8 6,3 6,1

Balance Sheet P/BV 11,21 8,90 7,37 6,23

(EURm) 2018A 2019E 2020E 2021E Dividend Yield (%) 0,7% 1,0% 1,1% 1,3%


3,44 4,26 3,91 3,58

Shareholders’ Equity 118,3 133,1 180,0 213,0 EV/EBITDA 17,4 21,4 19,0 17,3

Net Financial Debt / (Cash) 59,1 49,5 23,5 -6,5 EV/EBIT 20,9 28,1 24,7 22,0




COIMA RES MARKET PRICE: EUR9.00

Financials

Data





Reuters/Bloomberg: CRES.MI CRES:IM


Source: FactSet

Performance

1m 3m 12m

Absolute 4.7% 13.4% 17.8%

Rel. to FTSE IT -1.5% -3.5% -4.0%


Source: FactSet



Hot Topics The 9M19 results press release confirms the company objective to

"consider further disposals of mature, non-strategic and non-core assets on an opportunistic basis”. Could we know if discussions are already in place on the topic?

In 2019 YTD new leases worth EUR10 million per annum were signed. Expectations for 2020?

Is the company planning to increase further the portfolio concentration in Milan and in the office segment in particular?

Dividend policy for 2020?

Company profile

Founded in 2015, Coima Res is a real estate company aiming to actively manage a

portfolio of high quality assets (mainly commercial properties) able to generate

growing and sustainable cash flows for investors. Managed by an in-house team of 5 professionals, the company currently owns a portfolio of 77 properties worth EUR665 million for a total commercial surface of more than 189,000 sqm.

Overall the company investment strategy is centered around: 1) Core and Core+ real estate (currently counting for 94% of total portfolio) with attractive risk-return profile; 2) Assets in Milan (now representing around 90% of the property

portfolio) which is the largest, most transparent and most liquid Italian market; 3)

Off market transactions leveraging the company network and presence on the market; 4) Prudent financial structure keeping an LTV < 40%; 5) Co-investments in value-add projects in joint ventures. The company was listed in 2016 as a

Società di Investimento Immobiliare Quotata (SIIQ) raising primary proceeds of EUR215 million.


Recent developments

Coima Res reported solid financial results in Sep-19: gross rents were up 1% YoY to EUR26.9 million, NOI margin rose to 89.5% (+30 bps vs. Sep-18), EBITDA

reached EUR16.9 million (+11.6% YoY) and EPRA NAV increased by 2.1% to EUR11.95. In terms of portfolio performance, rental growth was 1.8% on a like for like basis, while the EPRA occupancy rate grew by 270 bps to 98.1%. Guidance of

EUR0.35 EPRSA earnings per share confirmed for FY19. In September, the company secured, through an off market transaction, the acquisition of two office

properties in Milan, fully let, for a comprehensive value of EUR158 million, in line

with its stated strategy to focus on the office high-end segment in Milan: 1) The Microsoft headquarters in Milan Porta Nuova (9,400 sqm newly built property, LEED Gold certified) valued EUR97.5 million; 2) The Philips headquarters in Milan

Bicocca (17,500 sqm refurbished property, LEED Platinum certified) worth EUR60.5 million. In November, Coima Res signed a preliminary agreement for the sale of a portfolio of 11 bank branches located in the North of Italy for a

consideration of EUR23.5 million, a price substantially in line with the book value (2.0% discount). Such disposal is expected to close before June 2020.

SWOT Analysis


High quality portfolio, focused on office assets in Milan

Proven management team track record

Fiscal advantages granted by SIIQ status

Low liquidity of shares

Gross debt increase (EUR332.4m in 9M19 vs. EUR291.3m in FY18)

Weakening macro-economic scenario


Positive momentum for Italian real estate market (EUR11bn in 2019E)

Dynamic environment for Milan offices with EUR1.5 billion transactions

value occurred in the first nine month of 2019

Rise of interest rates

Bureaucracy and political environment

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8,500

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9,500

coima res FTSE Italia All-Share

Foreign institutional investrs; 19,0%

Italian retail investors; 3,0%

Italian institutional

investors; 37,0%

Quatar Holding;

40,0%

Management & BoD; 1,0%

58,0%

60,0%

62,0%

64,0%

66,0%

68,0%

70,0%

0

5

10

15

20

25

30

2016 2017 2018

EBITDA % margin



COIMA RES


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 36,3 34,7 37,6 36,5 ROE 10,9% 6,2% 5,1% 3,8%


EBITDA margin 68,9% 66,1% 70,1% 63,9% Net Fin. Debt / EBITDA (x) 8,8 10,8 9,0 7,2

EBIT 52,2 40,1 27,5 26,1 Capex / Sales 22,9% 46,1% 16,7% 23,9%



Taxes -2,0 -5,7 0,4 -5,2

Net Income 46,3 28,1 24,2 18,9

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,42 0,37 0,41 0,43

Growth Rates DPS 0,30 0,34 0,36 0,33

(EURm) 2018A 2019E 2020E 2021E BVPS 11,78 12,56 13,23 13,76

Growth Group Net Sales 11,2% -4,2% 8,3% -3,1%

Growth EBITDA 14,7% -8,2% 14,9% -11,7%

Growth EBIT 41,5% -23,2% -31,5% -5,1%

Growth Net Profit 59,8% -39,3% -13,8% -22,0% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 12,7 24,5 21,7 21,1

EV/CE 0,8 0,8 0,8 0,7



Capital Employed 644,5 701,8 714,8 665,1 EV/Sales 13,58 16,51 14,94 13,53


Net Financial Debt / (Cash) 219,0 248,2 237,0 168,4 EV/EBIT 11,5 14,3 20,5 18,9




COMER INDUSTRIES MARKET PRICE: EUR12.20

Engineering and mechatronics

Data





Reuters/Bloomberg: COME.MI COM IM

52-Week Range (EUR): 10.0 13.48

Source: FactSet

Performance

1m 3m 12m

Absolute 0,8% 5,5%

Rel. to FTSE IT -0,1% 9,4%


Source: FactSet



Hot Topics The outlook of the machinery market remains challenging and agricultural

division was flat in 1H19. What are the main strategies to face this difficult trend?

With EUR80 million of new financing, Comer Industries seems ready to further M&A deals and/or partnership with other players. What is your strategy in this respect?

What are the expected capex in the coming years, split between maintenance and additional production capacity?

Company profile

Comer Industries is a global player in the design and production of advanced

engineering systems and mechatronic solutions for power transmission supplied

to large agricultural and industrial machinery producers (CNH, John Deere, Caterpillar, Siemens, Gamesa etc.). It operates in the sectors of agricultural machinery (42% of sales in 1H19), construction equipment and forestry, energy

(wind turbines) and industry (58% of sales) selling gear boxes, driveshafts, planetary wheel drives and other products. The company has a wide international presence, nearly 1,400 employees, seven plants of which one in China and one in

India which adopt the WCM philosophy. Comer industries has been listed on the

AIM market in March 2019 through the business combination with the SPAC Gear 1 rising EUR30 million.


Recent developments

In the first six months of 2019 revenues amounted to EUR220.8 million, +8.4% (+8% at constant forex) on the same period of 2018, mostly thanks to the good

performance of the Industrial division (+22.7%) which was driven by construction equipment machinery and by wind turbines. The agricultural division was flat. EBITDA margin topped 12.2% (vs. 10.6% in 1H18) growing by 24.8% also thanks to

IFRS 16 impact (EUR1.9 million). On adjusted basis EBITDA margin was 11.5% (vs. 10.6% in 1H18). Both divisions contributed to this improvement: Industrial division

reached 10.6% margin (vs. 8.0%) and Agricultural division 13.3% (from12.1%).

Consequently EBIT grew by 17.7% and net profit by 12.9% despite the higher tax rate. Net debt decreased to EUR36.0 million thanks to the cash-in stemming from the business combination (EUR30 million) and positive cash generation. Comer

Industries also subscribed EUR80 million of new financing in order to reduce the cost of financing while increasing available resources.

SWOT Analysis


Stable shareholder and highly experienced management team

Wide range of products

Long-term contracts with large customers and high loyalty rate

Strong competition

Cyclical industry and challenging outlook for the machinery market

Low liquidity of the share


The new EUR80 million financing could open new opportunities

Growing margins thanks to scale economies

Potential acquisitions and partnerships

Worsening outlook for agricultural and construction equipment industries

Raw materials prices and forex fluctuations

Geopolitical risk in some areas and potential custom duties in the US

8

10

12

14

Comer Industries

FTSE Italia All-Share

Eagles OAK;

75,0%

Finregg; 8,3%

Free float; 16,7%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

0

100

200

300

400

2015 2016 2017 2018




COMER INDUSTRIES


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 379,0 401,3 423,8 441,2 ROE 17,7% 14,4% 15,1% 14,5%



EBIT 24,9 28,5 34,2 38,1 Capex / Sales 4,1% 4,0% 4,0% 4,0%



Taxes -7,1 -8,0 -9,9 -11,2

Net Income 15,7 17,8 22,0 24,8

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,92 0,87 1,08 1,21

Growth Rates DPS 0,21 0,60 0,00 0,00

(EURm) 2018A 2019E 2020E 2021E BVPS 4,36 6,06 7,14 8,36


Growth EBITDA 28,9% 17,7% 13,1% 8,2%

Growth EBIT 45,6% 14,5% 20,0% 11,4%

Growth Net Profit 37,7% 13,4% 23,6% 12,7% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 13,3 14,0 11,3 10,1

EV/CE 2,3 1,8 1,7 1,7




0,75 0,71 0,63 0,56


Net Financial Debt / (Cash) 36,7 34,6 18,4 -2,0 EV/EBIT 11,4 10,0 7,8 6,5




CYBEROO MARKET PRICE: EUR3.77

Cyber Security

Data





Reuters/Bloomberg: CYB.MI CYB:IM


Source: FactSet

Performance

1m 3m 12m

Absolute 5.6% NA NA

Rel. to FTSE IT -0.6% NA NA


Source: FactSet



Hot Topics The company plans to hire15 specialists per year for the next 4 years, Is

this hiring destined to meet overdemand or new, breakthrough solutions ahead?

Cyberoo is able to exploit pricing advantage compared to international, large-size competitors. Does the company plan to change this pricing strategy in the long run?

The company has not disclosed a business plan, but it is clearly planning to smoothly gain market shares in foreign markets. How many years does the

management believe it will take to make substantial non-domestic business?

We understand that the company is thinking about specific acquisitions in

the domestic market to increase its presence in key regions (Piedmont and Triveneto above all). Should we instead expect partnerships for international expansion?

Company profile

Founded in 2008 as a hardware components seller from a spin off of the Sedoc

Group, the company started to invest in IT security solutions in 2011. In Aug-19,

Cyberoo listed in the Milan Stock Exchange - AIM segment, representing the only Italian public company fully involved in the cyber security industry. The company operates through three business lines: 1) Cyber Security & Device Security

(18.9% of revenues in FY18); 2) Managed Services (62.8% of sales in FY18); 3) Digital Transformation (18.3% of revenues in FY18) and sells its products through three main channels: 1) Direct sales with a dedicated team; 2) Partnerships; 3) E-

commerce sales. Cyberoo is currently exploiting a significant competitive

advantage thanks to its innovative, always on (24/7), proprietary solutions, mostly conceived in the strategic R&D department opened in Kiev in 2016 (choice driven by the expertise and specialization of Ukraine IT graduates). Following the

rapid growth of cyber attacks on SME and the increasing regulation on the matter (General Data Protection Regulation in force from 2018), Cyberoo plans to increase its customers (>600 firms so far) and compete in international markets.


Recent developments

In 1H19 Cyberoo reported EUR3.0 million value of production (or 58% of FY18

VoP) and EUR1.0 million EBITDA (or 59% of FY18 EBITDA), implying a 34.0% margin, with a bottom line positive for EUR0.4 million. As for the balance sheet,

Net Debt rose from EUR0.5 million in Dec-18 to EUR1.1 million in Jun-19 (EUR2.4 million adjusted for expired tax debt). Goodwill (EUR2.1 million) represented 68% of total Equity. The company expects to close FY19 with EUR6.6

million value of production (vs. EUR5.2 million in Dec-18, +26% growth) and EUR2.4 million EBITDA (compared to EUR1.7 million in FY18, +39% increase), corresponding to a 36.4% margin on VoP (vs. 33% reached in Dec-18).

The company IPO has been one of the most successful of recent years in the AIM

segment, with an impressive 5.6x oversubscription (EUR40 million orders

compared to an EUR7 million target). The closing price of the first trading day was EUR4.33 (up 51.5% compared to the EUR2.86 IPO price), corresponding to an EUR41.4 million market cap.

SWOT Analysis


Unique Italian listed company 100% active in the cybersecurity business

High visibility of revenues (73% of overall turnover is recurring)

Flexible and pricing competitive offer that perfectly suits the SME firms

No dividend distribution expected in the short term

Small size compared to international competitors

Space to improve governance (independent directors, gender equality)


High growth of heavy cyber attacks (+38% in 2018 in Italian landscape)

R&D center in Kiev strategic in the long run for creating new solutions

Increasing cyber security regulation

Difficult penetration in foreign markets (higher competition) and delivery

still to be proved (lack of substantial track record)

Risk of new entrants in the domestic SME cyber security market

3

3,5

4

4,5

5

5,5

6

7-Oct 14-Oct 21-Oct 28-Oct 4-Nov 11-Nov

Cyberoo FTSE Italia All-Share

SDG Innovative Technologies; 38,0%

Sedoc; 33,5%

BoD; 2,2%

Free float; 26,3%



CYBEROO


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 5,2 5,9 8,2 11,9 ROE 15,4% 9,5% 14,7% 21,5%

EBITDA 1,7 2,3 3,5 5,7 Net Fin. Debt / Equity (x) 0,2 -0,7 -0,7 -0,7

EBITDA margin 32,7% 38,9% 42,7% 48,3% Net Fin. Debt / EBITDA (x) 0,3 -2,8 -2,3 -1,8

EBIT 0,9 1,3 2,4 4,4 Capex / Sales NA 17,0% 12,2% 11,0%



Taxes -0,3 -0,4 -0,7 -1,3

Net Income 0,4 0,9 1,7 3,1

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,04 0,10 0,18 0,33

Growth Rates DPS 0,00 0,00 0,00 0,00

(EURm) 2018A 2019E 2020E 2021E BVPS 0,27 1,03 1,21 1,54


Growth EBITDA 34,7% 53,4% 63,1%

Growth EBIT 44,9% 82,1% 86,1%


(x) 2018A 2019E 2020E 2021E

P/E 89,5 37,7 20,9 11,4

EV/CE 11,7 9,0 8,0 6,2





Net Financial Debt / (Cash) 0,5 -6,5 -8,0 -10,5 EV/EBIT 40,4 22,5 11,7 5,7




EQUITA GROUP MARKET PRICE: EUR2.57

Investment Banking

Data



Enterprise Value (EURm): NA

Av. Daily Trad. Vol. (m): 36.7%

Reuters/Bloomberg: EQUI.MI EQUI IM


Source: FactSet

Performance

1m 3m 12m

Absolute 3.2% -0.8% -24.1%

Rel. to FTSE IT -3.0% -17.6% -45.8%


Source: FactSet



Hot Topics At the time of the release of 3Q19 results (which showed Net Profit flat

YoY in 1H19) a guidance for FY19 was given: revenues @ -15% YoY and net income/revenues at 15%. A new mid/long-term guidance was given (Revenues of EUR75 million, net profit margin of 20%, AuM of EUER2

billion). 2019 and long-term guidance should be key discussion topics;

Any guidance (and any financial result up to 9M19) is before performance fees (usually calculated at year end and booked on 2019). At this point of

the year visibility should be high and this is a factor that could materially improve the FY2019;

Countervalues on MTA were down 17% YoY as of October YTD, derivatives and ETF were flat, fixed income was massively up (+17%). This

compares with a -28% YoY as of 1H19 in equities. How this translates into commissions at Equita should be a major topic of discussion;

An update on the deals pipeline would be a good driver of 1H20 results.

Company profile Equita is the leading boutique in Italy with distinctive features like the largest

trading floor in Italy, a top-ranked research team and clear positioning in the mid-

market segment. It operates three different business lines:

Global Markets (67% of 1H19 Net Revenues) that could be further split

into: Sales & Trading (44% of 1H19 Net Revenues) and Proprietary Trading

(22.7% of 2018 Net Revenues);

Investment Banking (23% of 1H19 Net Revenues);

Alternative Asset Management (11% of 1H19 Net Revenues), which

manages EUR1.2 billion.

The company has a solid balance sheet (25% TCR as of 1H19) and paid a dividend

of EUR0.22 in May 2019.

Management owns 54.3% of the company through a shareholder’s pact that

provides stability and reduces the overhang on the stock. In 2017 the company was listed on AIM Italia and, in 2018, moved to the STAR segment.

5-year historical trend of revenues

Recent developments

In October 2019 Equita launched the fundraising for its second private debt fund.

The target size is EUR200 million, with a maturity of 5 to 7 years and an expected gross return of 9.5%. While private debt funds pay performance fees only at the end of their lifecycle, they are useful instruments to supply recurring management

fees and have a synergetic effect with the rest of Equita’s business.

In September 2019 the company launched its own SGR (Equita Capital) aimed at position itself away from traditional wealth and asset management but rather offering tailored products to the institutional investors and retail bank’s needs.

Various asset classes could be targeted (ELTIF, venture capital, real estate, etc.). Equita group will co-invest in the SGR products, so to align its interests with investors’ ones.

SWOT Analysis


Leading position in the cash-equity Italian market;

Experienced management with an entrepreneurial attitude;

High employees’ retention rates.

Sales & Trading and Proprietary Trading businesses are volatile;

Revenues are Italy-centric;

A small size compared to International and to some Italian players.


Higher cross-selling;

Development of AAM, which could add visibility to revenues;

The company has enough resources to grow in-organically.

Reputational risk, in a business where brand is a key asset;

The departure of key people may impact Equita’s operations;

Adverse stock market performances-volumes.

2,000

2,500

3,000

3,500

4,000

4,500

5,000

No

v-18

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-19

May

-19

Jun

-19

Jul-

19

Au

g-19

Sep

-19

Oct

-19

Equita Group SpA FTSE Italia All-Share

Perilli Francesco;

11,4%

Vismara Andrea;

6,3%Treasury;

9,1%

Fenera Holding;

5,0%Free float;

68,2%

0

20

40

60

80

2014 2015 2016 2017 2018

Sales



EQUITA GROUP


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 59,8 54,9 58,3 61,4 ROE 13,8% 12,0% 14,5% 15,8%

EBITDA nm nm nm nm Net Fin. Debt / Equity (x) nm nm nm nm

EBITDA margin nm nm nm nm Net Fin. Debt / EBITDA (x) nm nm nm nm

EBIT nm nm nm nm Capex / Sales nm nm nm nm

EBIT margin nm nm nm nm Pay Out Ratio 91% 105% 89% 84%


Taxes 4,5 3,9 4,8 5,4

Net Income 12,0 9,6 11,8 13,3

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,24 0,21 0,26 0,29

Growth Rates DPS 0,22 0,22 0,23 0,245

(EURm) 2018A 2019E 2020E 2021E BVPS 1,76 1,75 1,79 1,85

Growth Group Net Sales 10,9% 18.0% 4.0% 3.5%

Growth EBITDA nm nm nm nm

Growth EBIT nm nm nm nm

Growth Net Profit 0,2% -13,3% 23,1% 13,2% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 10,6 12,2 9,9 8,8

EV/CE n.m. n.m. n.m. n.m.




nm nm nm nm

Shareholders’ Equity 80,1 79,6 81,4 84,3 EV/EBITDA nm nm nm nm

Net Financial Debt / (Cash) nm nm nm nm EV/EBIT nm nm nm nm




EUROTECH MARKET PRICE: EUR9.25

Technology

Data





Reuters/Bloomberg: E5T.MI ETH:IM


Source: FactSet

Performance

1m 3m 12m

Absolute 16.6% 91.3% 133.6%

Rel. to FTSE IT 10.5% 74.4% 111.8%


Source: FactSet



Hot Topics During the 3Q19 call, the CEO confirmed the growing interest fir

Eurotech’s IoT solutions and HPEC, whose business currently account for around 1/5 of overall turnover. What EBITDA margin should we expect in 2020 thanks to the positive contribution of such activities expected for

2H20?

After the entry of Emera, Eurotech could follow a mora aggressive M&A

approach

M&A focus: the ideal target would be a small, EUR5m – EUR15m revenues

company, operating in the embedded computer business. Has the company already identified potential candidate?

Company profile

Founded in 1992, Eurotech is an international company historically active in the

design of embedded computers (niche, mature market). In particular, the

company: 1) Engineers the products and outsources the production to qualified manufacturers; 2) Serves mainly the transportation, healthcare, defense and energy industries; 3) Stands at high end of the market thanks to the

miniaturization and low power consumption of its products (requiring a premium price compared to competitors); 4) Enables customers to focus on main competences (faster time to market, lower cost of ownership). Following a

period of weakness of the core business activity, the company entered the

Internet of Things (IoT) business in 2009, providing gateways for any industry vertical, an open edge framework and a modular cloud infrastructure. The company was listed on the STAR segment of the Italian Stock Exchange in

November 2005.


Recent developments

Following the good performance of the first and second quarter, Eurotech reported solid 3Q results. Revenues were up 35.7% to EUR26.6 million (vs.

EUR19.7 million in 3Q18) resulting in EUR79,7 million 9M19 top line (higher than the entire FY18 figure) thanks to the crucial contribution of US and Europe areas. After a strong improvement in Gross Profit (EUR13,7 million in 3Q19 vs. EUR9.5

million in 3Q18), EBITDA grew triple digit o EUR5.3 million (vs. EUR2.0 million in 3Q18), leading to a 20% EBITDA margin (doubled the 3Q18 profitability), while

EBIT was three times the 3Q18 value (EUR4.3 million vs EUR1.5 million). The

bottom line overcame EUR3 million in 3Q19 (+111.3% vs. 3Q18) and almost achieved EUR12 million in 9M19 (vs. 3.4 million in 9M18). Moreover, net cash improved to EUR5.2 million (EUR9 million without applying IFRS16) vs. EUR1.3

million in Jun-19 (and EUR0.9 million in Dec-18) with EUR24.9 million of cash and cash equivalents. For 4Q19, the company forecasts a top line comparable to the one attained in 4Q18 but higher margins. For FY19, a gross margin close to 50% is

expected. In August, Emera became the largest shareholder of Eurotech by acquiring the 11.08% stake held by Leonardo.

SWOT Analysis


Solid positioning in embedded computers high end market

Fabless production model (no constraints on production development)

Significant M&A firepower (high cash & equivalents, positive NFP)

Standardization of computer boards (higher price competition)

Limited number of customers

Intangibles represents 75.8% of total Equity at Sept-19


Positive expectations for overall FY19 results

Turnover growth expected in medium term following effort in addressing

larger customers in the IoT and Edge Computing fields (mainly US & EU)

Increasing competition in Internet of Things business

Fresh resources allocated to IoT business to the detriment of the historical

embedded computers core activity of the company

2,7003,2003,7004,2004,7005,2005,7006,200

Eurotech FTSE Italia All-Share

Siagri ; 1,2%

Paladin; 8,0%

Leonardo;

11,0%Free

Float; 79,8%

-3,0%

-1,0%

1,0%

3,0%

5,0%

7,0%

9,0%

11,0%

-20

0

20

40

60

80

100

2015 2016 2017 2018




EUROTECH


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 79,1 102,8 113,0 121,5 ROE 5,5% 11,9% 12,3% 11,7%


EBITDA margin 10,3% 19,5% 20,8% 21,9% Net Fin. Debt / EBITDA (x) -0,1 -0,3 -0,9 -1,3

EBIT 5,8 16,0 19,5 22,5 Capex / Sales 3,6% 3,1% 3,1% 3,0%



Taxes 0,0 -1,3 -2,3 -4,1

Net Income 5,6 13,7 16,2 17,4

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,16 0,39 0,46 0,49

Growth Rates DPS 0,00 0,00 0,00 0,00

(EURm) 2018A 2019E 2020E 2021E BVPS 2,87 3,26 3,72 4,21


Growth EBITDA 385,9% 146,9% 17,5% 13,1%

Growth EBIT NM 175,5% 21,9% 15,2%

Growth Net Profit NM 143,7% 18,0% 7,6% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 58,4 24,0 20,2 18,8

EV/CE 3,2 2,9 2,8 2,6





Net Financial Debt / (Cash) -0,9 -6,1 -20,3 -35,9 EV/EBIT 19,6 20,1 15,8 13,0




EXPERT SYSTEM MARKET PRICE: EUR2.96

IT Services

Data





Reuters/Bloomberg: EXSY.MI EXSY IM


Source: FactSet

Performance

1m 3m 12m

Absolute 2,1% 19,8% 142,6%

Rel. to FTSE IT -4,1% 3,0% 120,9%


Source: FactSet



Hot Topics Expert system’s proprietary platform “Cogito” ranks amongst the top

cognitive computing software worldwide (Gartner, Forrester) and the company is the largest European vendor of text analytics and cognitive computing. This position could be jeopardized by large IT developers that

have much higher financial resources.

The US are by far the largest market for cognitive computing and Expert

System has invested strongly in the country but revenues are still limited (23% of sales in 1H19 with an increase of +16%) and operating losses huge. Therefore, it is crucial to understand the development in the US which

should be accelerated by the right issue of last April.

Since its listing in February 2014 Expert System has always reported huge

operating losses and needed several right issues to finance its expansion. The big question is when the huge investments of the past five years would translate into profit.

Company profile

Expert system is a leading provider of cognitive computing and text analytics

software based on its proprietary, patented and multilingual platform “Cogito”,

(now at 14.4 version launched last April) which covers 14 languages including Chinese, Japanese and Korean. It operates worldwide with 58% of revenues outside Italy, through branches in France, UK, Germany, Spain and the US and

has >240 employees. Following the difficulties experienced in 2016 and the first part of 2017, the company began to react by reducing costs and improving its internal organization but also by adopting a new and more focused strategic

approach: more recurring fees (now at 91% of turnover vs. 79% in 2018) and

fewer perpetual licenses and professional services, higher product standardization and economies of scale, concentration on a selected number of large international clients, focus on specific markets (Italy, UK, US, Germany, France,

Spain) and sectors (insurance, banking, media, healthcare, financial services, security intelligence, public agencies), and partnerships with large IT vendors in order to supply its services through multinational and established vendors.


Recent developments

1H19 revenues were down 8.3%, and the EBITDA was negative for EUR0.4 million

(vs. a substantial breakeven in 1H18). After EUR3.8 million of D&A, the EBIT was negative for EUR4.2 million (EUR3.6 million in 1H18) leading to a net loss of

EUR4.0 million, or 34% of sales. Net debt declined to EUR5.7 million benefitting from the capital increase of EUR7 million held In April 2019 (at EUR1.80 per share) subscribed by a pool of private investors: entrepreneurs, managers and

professionals including Claudio Costamagna, Diego Piacentini and Francesco Caio.

These new resources should fuel development of business in the United States and Europe. Following the right issue the share number increased to 39.9 million with a dilution of 10.8%, and free float is now to 6.7.9%. Based on market scenarios and

the commercial pipeline, Expert System expects to close 2019 with revenues near to EUR33 million and EBITDA in a range between EUR5 and EUR6 million (from EUR7-8 million expected before). The company is working on a new business plan

for the next three years that will be presented in the coming months.

SWOT Analysis


Unique knowledge in cognitive computing

Fast growing addressable market

Wide customer base with leading companies

Cash burning in the past five years

Limited size and financial resources, compared with large IT developers

Huge net invested capital and low capital turnover


Attractive prey for large IT developer

Expansion outside Italy (the US, Germany, Spain)

New clients (insurance, banking, media)

Technology breakthrough in the cognitive computing industry

Possible write down of existing goodwill and immaterial assets

Potential capital increase to offset cash burning and new investments

1,0001,5002,0002,5003,0003,5004,000

Expert System FTSE Italia All-Share

Lombardi; 7,0% Spaggiari;

7,7%

Varone; 7,7%

Free float; 67,9%

Ergo; 9,7%

-20,0%

-10,0%

0,0%

10,0%

20,0%

30,0%

-5

0

5

10

15

20

25

30

35

2014 2015 2016 2017 2018




EXPERT SYSTEM


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 28,9 32,9 37,2 47,0 ROE -25,1% -13,5% 3,2% 7,0%



EBIT -3,2 1,3 3,8 5,6 Capex / Sales 20,2% 16,5% 15,3% 12,1%

EBIT margin -11,2% 4,0% 10,2% 11,9% Pay Out Ratio 0,0% 0,0% 0,0% 0,0%

Profit before taxes -3,0 -0,9 0,7 4,6

Taxes -0,8 -1,7 -0,1 -3,2

Net Income -3,8 -2,5 0,6 1,4

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS -0,10 -0,06 0,02 0,04

Growth Rates DPS 0,0 0,0 0,0 0,0

(EURm) 2018A 2019E 2020E 2021E BVPS 0,38 0,47 0,47 0,50


Growth EBITDA 341,8% 35,8% 31,7% 27,7%

Growth EBIT nm nm nm 47,5%

Growth Net Profit nm nm nm 133,3% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E nm nm 196,8 84,4

EV/CE 4,5 4,9 4,9 4,1




1,85 3,79 3,36 2,98

Shareholders’ Equity 15,1 18,8 18,6 20,0 EV/EBITDA 11,5 19,8 15,1 11.8

Net Financial Debt / (Cash) 12,4 6,8 6,9 10,7 EV/EBIT nm 95,0 33,0 15,2




FIERA MILANO MARKET PRICE: EUR4.55

Industrials

Data





Reuters/Bloomberg: FIMI.MI FM:IM


Source: FactSet

Performance

1m 3m 12m

Absolute 10.2% 17.1% 22.5%

Rel. to FTSE IT 4.0% 0.2% 0.7%


Source: FactSet



Hot Topics The development of top owned brands’ geo-clones represents one of the

key pillars of the Group strategy. It would be interesting to know whether the Company is currently in discussion for partnerships (focus on China)?

Net debt guidance for Dec-19

The positive implementation of the 2018-2022 strategic plan, EBITDA

guidance for 2020 has been raised in the range of EUR71-75 million. Could you give some hints on cash generation and top line expected?

Dividend policy for coming years (EUR0.13 2018 dividend per share)

Company profile

Founded in 1920, Fiera Milano is the market leader in Italy and one of the world’s

foremost operators across the entire value chain of the exhibition industry,

covering five businesses: 1) Organization and hospitality for exhibition events in Italy and abroad (respectively 52 and 27 in 2018 with >35,000 exhibitors); 2) Assembling services; 3) Media (online and offline publishing services and content

production); 4) Training events (127 in 2018); 5) Conference management. The company boasts a significant 399,000 sqm indoor exhibition space to be split between the 345,000 sqm Fieramilano site (fourth worldwide and third in

Europe) and the 54,000 sqm fieramilanocity site. The Group counts on 696

permanent employees (of which 97 abroad) and is present outside the domestic market in China, Brazil and South Africa, where organizes around 30 overall events per year. According to the 18-22 business plan, the Group strategy is

based on: improvement of hosted exhibitions & congress portfolio, expansion of international exhibitions, valorization of services and further growth of leading owned exhibition (Host, Tuttofood, HOMI). Listed on the STAR segment of MSE.


Recent developments

After EUR30.1 million revenues in 3Q19 (the third quarter includes a structurally

weak period for the exhibition business since activities stop in Italy during the summer months), Fiera Milano reported EUR183.9 million 9M19 revenues vs.

EUR193.3 million in 9M18. This change is primarily due to the different exhibition calendar, which in the previous year included the triennial event “The Innovation Alliance”, the biennial “Mostra Convegno Expocomfort” and the “Lineapelle”

exhibition, partly offset by the presence of the biennials “Tuttofood” and “MADE”

expo, the commercial growth of congresses and exhibitions and the stronger penetration of ancillary services. We stress that 9M19 exhibition calendar is comparable to 9M17, when top line totaled EUR177.4 million. Following a 3Q19

EBITDA of EUR2.0 million (o/w EUR11.8 million IFRS16 contribution) vs. EUR-5 million in 3Q18, the 9M19 EBITDA overcame EUR64 million (it was EUR41.1 million in 9M18, implying a 56.7% growth). Net cash, before IFRS effects, reached

EUR51.7 million in Sep-19 vs. EUR58.0 million in Jun-19 for operating cash flows deriving from the suspension of activities in the summer months. As for the guidance, 2019 EBITDA expected in upper part of announced EUR96-100m range.

SWOT Analysis


Unchallenged market leader and integrated operator

5% expected CAGR to 2022 for exhibition market (AMR Globex 2018)

High visibility on revenues due to long term contracts with organizers

EUR107m goodwill and intangible assets at Sep-19 (115% of Equity)

Exhibitions’ sites subject to rental contract from main shareholder

Business seasonality (biennial/multiannual frequency of exhibitions)


Italian market fragmentation

Most industry sectors concentrating on few leading exhibitions

Effort to increase share of directly organized exhibitions (higher margins)

Increasing competition from international players

Digital innovation is becoming crucial to attract high potential exhibitors

2,500

3,500

4,500

5,500

6,500

Fiera MI FTSE Italia All-Share

Ente Autonomo

Fiera Internazionale di …

Camera di Commercio Metropolitana; 6,5%

Treasury shares; 1,3%

Free float; 28,4%

0,0%

5,0%

10,0%

15,0%

0

100

200

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2014 2015 2016 2017 2018




FIERA MILANO


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 247,2 278,8 259,8 322,0 ROE 19,6% 30,9% 14,1% 42,7%

EBITDA 31,9 66,7 44,6 73,0 Net Fin. Debt / Equity (x) -0,2 -0,6 -0,5 -0,9


EBIT 25,1 48,0 25,5 67,0 Capex / Sales 1,1% 0,4% 0,4% 0,3%



Taxes -6,1 -9,2 -4,2 -10,3

Net Income 18,9 33,0 16,6 52,0

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,26 0,46 0,23 0,72

Growth Rates DPS 0,13 0,13 0,08 0,13

(EURm) 2018A 2019E 2020E 2021E BVPS 1,10 1,44 1,47 1,69

Growth Group Net Sales -8,9% 12,8% -6,8% 23,9%

Growth EBITDA 111,6% 109,3% -33,1% 63,7%

Growth EBIT 366,9% 91,3% -46,9% 163,1%

Growth Net Profit 1052,3% 74,9% -49,8% 213,5% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 17,6 10,0 19,7 6,3

EV/CE 4,2 6,3 4,3 16,9









GPI MARKET PRICE: EUR7.40

Healthcare services

Data





Reuters/Bloomberg: GPI.MI GPI IM


Source: FactSet

Performance

1m 3m 12m

Absolute -2,1% -9,8% -18,7%

Rel. to FTSE IT -8,3% -26,6% -40,5%


Source: FactSet



Hot Topics In our view, it is important to understand the reasons behind the margin

slowdown reported in the first half of 2019 and the strategic solutions undertaken for surpassing this phase.

M&A strategy and its financing remains a key topic in our view, particularly after the break of 2019.

In the recent past there was a significant management reshuffle with Mr. Santoro as the new General Director and Mrs. Allegri appointed as the new CFO. We believe it is important to learn if and how the company’s

strategy could change.

GPI has the target to grow its sales outside Italy now limited to 7% of

consolidated revenues. The strategy in this direction could be a crucial step to lower the risk linked to the Italian public health sector.

Company profile

GPI is a leading provider of services to the healthcare industry that range from

innovative IT solutions, logistics and robotics for pharmacies and hospitals,

monetics, professional IT services to the outsourcing of contact centers and front-end services. The company, founded in 1988, has grown rapidly over the past few years due to several acquisitions (>EUR60 million invested in the past

three years) and has now nearly 5,000 employees. GPI has two main divisions: Care (mostly business process outsourcing activity, where is the market leader, which grew significantly thanks to the contract to manage the Lazio region) which

represented 52% of sales in 1H19 and reported a modest EBITDA margin (2.6%)

and Software (37% of sales in 1H19 with an attractive 18% EBITDA margin in 1H19). Sales outside Italy represent 7% of group revenues. Its lean cost structure, healthy operating leverage and the quality of its products have allowed the

company to maintain its EBITDA margin >13% in the past few years. GPI was listed on the AIM market following the business combination with the SPAC Capital For Progress 1 in December 2016 and is now listed in the MTA market

segment.


Recent developments

GPI reported a bright organic growth in the first half of 2019 (revenues were up

18.4% sustained by the rump up of the contract in Lazio) but EBITDA margin (at

8.7% vs. 10.2% in 1H18) missed our expectations despite the positive impact of IFRS 16 first time adoption (EUR1.2 million). This was due to the additional revenues coming from the Lazio region contract (Care division) which has a lower

profitability compared with Software division. The bottom line remained positive

for EUR1.2 million only thanks to the release of fiscal provisions and net debt was up 31% (also due to IFRS 16). Net debt, including EUR7.7 million from IFRS 16, reached EUR80.8 million. GPI also recently won two contracts for its Automation

division for a total consideration of EUR1.3 million and 3 out of 5 lots in the Veneto Region tender for a total consideration of EUR27.5 million spread over 7 years. This news is positive as the new contracts should increase the average

profitability reinforcing the Software division while confirming the progressive increase of the size of the tenders, a condition that clearly favors the largest players like GPI. The company guided for sales above EUR230 million in 2019 with

an EBITDA margin around 14%.

SWOT Analysis


Leading position in a market with high barriers to entry

Wide and innovative product range

Excellent M&A track record

High exposure to the Italian market (86% of sales)

Modest growth in the healthcare IT market (around 3% p.a.)

Shortage of adequate public funds to upgrade public healthcare system


Cross-selling opportunities

Expansion outside Italy

Further acquisitions to gain international exposure and new products

Management under pressure following the recent reshuffle

Reduction of IT spend in public health

Increasing competition and potential entry of large international entities

Manzana family; 64,4%Treasur

y; 0,8%

Free float; 34,9%

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100

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2014 2015 2016 2017 2018




GPI


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 203,7 240,3 249,8 258,6 ROE 14,2% 14,3% 13,8% 14,6%



EBIT 13,2 16,6 18,2 19,9 Capex / Sales 7.7% 4.8% 4.3% 4.3%

EBIT margin 6,5% 6,9% 7,3% 7,7% Pay Out Ratio 56.9% 51.0% 54.8% 50.3%


Taxes -3,3 -3,4 -4,0 -4,8

Net Income 9,2 10,6 11,0 12,6

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0.58 0,67 0,69 0,79

Growth Rates DPS 0,33 0,34 0,38 0,4

(EURm) 2018A 2019E 2020E 2021E BVPS 4,23 4,57 4,92 5,34

Growth Group Net Sales 13.2% 18.0% 4.0% 3.5%

Growth EBITDA 3.2% 20.5% 7.2% 6.2%

Growth EBIT -16.7% 25.3% 10.2% 9.0%

Growth Net Profit 16.2% 14.9% 4.0% 14.6% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 16,8 11,0 10,7 9,4

EV/CE 13,8 6,4 4,1 4,0




8,5 6,5 5,6 5,0






GRIFAL MARKET PRICE: EUR3.68

Packaging

Data





Reuters/Bloomberg: GRALA.MI GRL IM


Source: FactSet

Performance

1m 3m 12m

Absolute 1,7% 19,5% -25,7%

Rel. to FTSE IT -4,5% 2,6% -47,4%


Source: FactSet



Hot Topics More details on the upcoming integrated logistics which should strongly cut

transportation costs and inventories as Grifal’s production should be supplied directly to distributors which will be delivered to customers adopting the “just in time” philosophy.

Understanding the evolution of the product mix is key in our view: we believe cArtù and cushionPaper have a higher margin than other products

(even if this data is not disclosed by Grifal).

Grifal’s business plan is based on the upgrade of the production lines of

cArtù with the target of tripling the production capacity while reducing the weight of the raw materials, adopting a new production process. n our view, it is important to understand the state of the art of the ongoing

projects and when the new production capacity will be at regime.

Company profile

Grifal is a leading industrial company specialized in the production of innovative

and patented packaging solutions and commodities based on EPE (polyethylene)

and corrugated cardboard.s supplied to >700 automotive, white goods, electronics, furniture and medical companies. With around 100 employees, Grifal has one production site (Cologno al Serio, close to Bergamo) and is currently

distributing in several countries (with Romania and Germany, where it has established a commercial branch, the most important) and revenues outside Italy are now 24% of total sales. Grifal is now at a turning point as it is moving from a

provider of tailored packaging solutions, mostly to local customers to a supplier

of commodities exploiting its innovative cArtù and cushionPaper products, therefore entering a colossal market. To reach this goal, the company will leverage on a disruptive corrugated cardboard product, called cArtù, which offers

lower weight, lower cost and is 100% recyclable. The company also produces packaging materials, mostly based on polyethylene foam.


Recent developments

Grifal reported an excellent 1H19 (sales up 9.7%, EBITDA up 55.5% net profit tripled) in line with the company business plan. All regions went up, in particular

foreign markets: Italy grew by 2.0%, while Europe and RoW rose respectively by 45.1% and 29.1%. The firm is clearly benefitting from the national and international success of cArtù brand, as confirmed by the license contract signed in the

semester for the outsourced production of cArtù packaging solutions. In details, the company profitability in 1H19 has been positively affected by: 1) The lower

cost of paper caused by the higher weight of cArtù on comprehensive turnover; 2)

the extraordinary IPO tax credit of EUR0.5 million. We highlight that stripping out this one-off tax credit, EBITDA would have reached EUR1.0 million, corresponding to a 10.4% margin, broadly in line with the historical performance

of Grifal. The company has recently obtained the authorizations for the construction of one facility (one to be used as warehouse and to hold future production lines for both cArtù and cushionPaper solutions) for an overall 5,700

sqm area besides the historical production site of Cologno al Serio. The building should start in 1Q20 and should be completed by Dec-2020.

SWOT Analysis


Innovative business model

Fully internal design and manufacturing of production machines

cArtù could be the new technological breakthrough in the industry

Strong concentration in the domestic market and limited size

Dependence on a limited number of key customers

Limited production capacity and production constraints


Entering in the commodity market through cArtù and cushionPaper

New distribution strategy based on integrated logistics approach

Increasing environmental awareness

Paper, cardboard and EPE price fluctuations

Increasing competition and potential entry of large international companies

Delays in building the new plant

G-Quattro

nove; 68,4%

Mediolanum SGR; 7,3%

Free float; 24,3%

9,5%

10,0%

10,5%

11,0%

11,5%

12,0%

12,5%

13,0%

-

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2015 2016 2017 2018




GRIFAL


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 19,6 22,4 27,2 33,1 ROE 5.1% 6.8% 8.5% 10.9%



EBIT 0,7 1,2 1,8 2,7 Capex / Sales 23.5% 13.4% 12.9% 7.4%



Taxes -0,1 -0,3 -0,5 -0,8

Net Income 0,4 0,7 1,1 1,8

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,04 0,07 0,09 0,12

Growth Rates DPS 0,03 0,03 0,04 0,05

(EURm) 2018A 2019E 2020E 2021E BVPS 0,78 0,99 1,06 1,14

Growth Group Net Sales 10.6% 14,3% 21,1% 21,9%

Growth EBITDA 19.0% 34,5% 27,7% 31,6%

Growth EBIT 8.5% 63,2% 46,2% 54,0%

Growth Net Profit 6.9% 84,6% 57,2% 61,3% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E nm 54,6 40,9 29,6

EV/CE 4,8 3,0 2,9 3,0




3,12 1,97 1,90 1,71


Net Financial Debt / (Cash) 5,4 4,3 4,8 2,2 EV/EBIT nm 36,4 31,4 20,8




IGD SIIQ MARKET PRICE: EUR5.94

Real Estate, SIIQ

Data




Reuters/Bloomberg: IGD.MI IGD IM


Source: FactSet

Performance

1m 3m 12m

Absolute 4,2% 13,1% -1,0%

Rel. to FTSE IT -2,0% -3,7% -22,8%


Source: FactSet



Hot Topics How are proceeding tenants’ sales in the past few weeks?

Your 2019-21 business plan was set up in November 2018. Since than macro-economic conditions have worsened. Do you this the business plan

targets are still valid or di they need to be revised?

How is proceeding the strategic agreement with Coop Alleanza 3.0?

The introduction of the government’s new rules on Sunday closures could

change the scenario? Do you fear any negative impact?

Company profile

IGD SIIQ Spa listed on the Star segment of Borsa Italiana, was the first to enter

the Siiq regime (listed real estate investment company) in Italy. IGD is one of the

leading players in the Italian retail real estate sector, focused on medium-sized shopping centers / large size consisting of hypermarket / superstore (surface area on average between 4,500 and 10,000 sqm and between 3,000 and 4,500 sqm)

and shopping arcade (normally 60/70 stores). The Group carries out a real estate rental management activity for shopping centers (Property Management), but also provides real estate services (Facility Management and Agency) both to the

property centers and to those of third parties. IGD's real estate portfolio, as at

Dec-18, consists of 27 commercial and retail park galleries, 25 hypermarkets and supermarkets, 1 land for direct development, 1 property for trading and 5 additional real estate properties. From 2008, 14 shopping centers and a building

used as offices in Romania are added to the portfolio. These assets have a market value of EUR2.39 billion at June-19. The company is listed at the Star market segment


Recent developments

Rental fees increased by 2.7% in the first nine months of 2019 with rental income

reaching EUR102.2 million or +10.2% (+2.5% stripping out the impact of IFRS 16 first time adoption). FFO (recurring net profit) was up 5.6% topping EUR62.9

million while the average cost of debt declined to 2.4% (vs. 2.7% in 2018). Loan to value is now at 47.8% and vacancy rate at 96.4%. The company’s 2019-21 business plan, presented in November 2018, aims to increase the shopping experience

supplying high-end services, entertainments and integrating with E-commerce

(Amazon lockers inside the shopping center). The targets are sales growing at 2% CAGR, FFO at 3% CAGR, EUR90 million investments (of which EUR35 million of refurbishment), loan to value below 45% Along with 1H19 results, IGD lowered

its FFO guidance from +6-7% to +4-5%.

SWOT Analysis


High occupancy rate (96.6% at June 2019)

High contract’s maturity

Solid and achievable investment plan

Strong domestic exposure

Weakening macro-economic scenario

Sector prospects are driven by GDP trends


Potential new acquisitions

Potential disposal of the portfolio in Romania

Strategic agreement with Alleanza 3.0

Interest rate fluctuations

Bureaucracy and political environment affect real estate market

Change of purchase habits

5,0005,5006,0006,5007,0007,5008,000

IGD FTSE Italia All-Share

Caoop Alleanze 3.0; 40,9%

Unicoop Tirreno; 12,0%

Free Float; 47,1%

10,0%

30,0%

50,0%

70,0%

90,0%

0

50

100

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200

2014 2015 2016 2017 2018

Sales Operating result % margin



IGD SIIQ


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 162,0 164,1 166,5 167,7 ROE 5,6% 6,1% 5,5% 7,7%



EBIT 95,6 70,5 128,0 152,0 Capex / Sales 139,0% 22,5% 19,2% 19,1%



Taxes 29,0 22,4 -23,9 -6,7

Net Income 78,0 76,1 68,5 100,6

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,71 0,71 0,67 0,87

Growth Rates DPS 0,50 0,50 0,50 0,53

(EURm) 2018A 2019E 2020E 2021E BVPS 11,64 11,54 11,89 12,48


Growth EBITDA 11,6% 10,1% 1,0% 0,5%

Growth EBIT -22,3% -26,3% 81,7% 18,8%

Growth Net Profit 24,5% -2,4% -10,1% 47,0% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 9,2 8,4 8,8 6,8

P/OpCFPS 0,7 0,7 0,8 0,8



Capital Employed 2.377,8 2.377,4 2.340,2 2.331,5 EV/Sales

10,28 10,83 10,45 10,02

Shareholders’ Equity 1.269,8 1.255,5 1.255,5 1.306,0 EV/EBITDA 15,1 14,4 14,0 13,4

Net Financial Debt / (Cash) 1.108,0 1.121,9 1.084,7 1.025,5 EV/EBIT 17,8 25,2 13,6 11,1




LA DORIA MARKET PRICE: EUR9.04

Consumer Goods

Data





Reuters/Bloomberg: LDO.MI LD:IM


Source: FactSet

Performance

1m 3m 12m

Absolute 4.6% 12.4% -9.1%

Rel. to FTSE IT -1.6% -4.4% -30.8%


Source: FactSet



Hot Topics The 2018-21 investment plan focuses on higher added value products with

stronger growth rates and better margins, while at the same time making the company more cost-competitive through leveraging economies of scale and production and logistical streamlining. What is the forecasted impact of

such plan in terms of EBITDA margin for 2020 and 2021?

What is the expected (and, eventually, worst-case scenario) impact of

Brexit on your financials? Are countermeasures already in place?

The company plans to grow by acquisitions. Are discussion already in place?

Eventually, will this M&A activity focused on the domestic market or foreign markets, and which product segment are you interested in?

Company profile

Founded in 1954, La Doria is a family firm leader (in Italy and abroad) in the

production of tomato-based products, pulses vegetables, ready-made sauces and

fruit juices. In detail, the company is: 1) Largest producer in Italy of peeled and chopped tomatoes; 2) First producer in Italy of preserved pulses; 3) First largest producer in Italy of pasta sauces in the private label segment; 4) Second largest

producer in Italy of fruit juices and beverages and first in the private label segment; 5) First on the UK market of private label canned tomatoes; 6) First on the tomato market in Japan and Australia. Overall, only 1/5 of overall sales comes

from Italy, with the vast majority of turnover generated in Noth Europe (60%),

while Asia & Oceania represent jointly less than 8% of total revenues. The company was listed in the Italian Stock Exchange in 1995. The company has outlined strategic future objectives: 1) Grow the higher added value and margin

product categories, also focusing on the premium and organic segments; 2) Continue international expansion to include new regions; 3) Pursue cost competitiveness through increasing volumes and improving efficiencies 4) Assess

opportunities for acquisition-led growth.


Recent developments

In Nov-19, La Doria reported 3Q19 and 9M19 results. In 3Q19 revenues were up

7.0% to EUR174.3 million, leading to an EUR532.9 million 9M19 top line (vs.

EUR512.2 million, +4.0% YoY) thanks to moderate increase in volume and slight increase of prices. In terms of geography, we highlights the strong growth of North Europe in absolute terms (+EUR24 million in 9M figures) and a weak

contraction of domestic market partly due to the loss of a number of discount

channel orders. In terms of profitability, EBITDA was up in 3Q (EUR17.0 million vs. EUR16.1 million) and flat in 9M at EUR40 million, however a tiny reduction of margin occurred for both reference periods for top line increase. After higher

D&A determined by the execution of the 2018-2021 investment plan, 9M19 EBIT reduced to EUR27.0 million (5.1% margin) from EUR29.0 million in 9M18 (5.7% profitability). Net Debt reached EUR135.0 million (vs. EUR107.2 million in Jun-19

and EUR11.3 million in Dec-18) due to higher investments and WC needs. Regarding 4Q, sales volumes are expected to increase and list prices to rise slightly, along with the continuation of the positive effects of the investments

launched in 2018, set to enter into full effect in 2021.

SWOT Analysis


Extremely competitive price / quality ratio

Production flexibility and breadth of production line

Consolidated partnership with players of large-scale retail distribution

Increasing negotiating power of supermarkets and growing price pressure,

particularly in the private labels segment

Slowing / declining consumption in Italian market


Rationalization of Group industrial sites with Accrea facility closing

Expected increase of industrial efficiency deriving from new automated warehouse at Parma facility and establishment of logistic platform in UK

Protectionism and trade tariffs

Brexit and sterling weakening (exchange risk)

Revenues are highly dependent on quality of harvests

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11,000

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13,000

La Doria FTSE Italia All-Share

Founders; 63,0%

Free float; 37,0%

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0

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2014 2015 2016 2017 2018




LA DORIA


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 687,9 691,9 722,7 739,1 ROE 11,3% 9,9% 10,6% 9,8%



EBIT 34,8 37,5 43,8 45,9 Capex / Sales 6,8% 8,1% 2,1% 1,1%



Taxes -9,0 -9,3 -10,9 -11,9

Net Income 27,3 26,0 30,8 32,0

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,88 0,84 0,99 1,03

Growth Rates DPS 0,18 0,19 0,24 0,22

(EURm) 2018A 2019E 2020E 2021E BVPS 7,79 8,50 9,37 10,58


Growth EBITDA -12,1% 0,4% 15,1% 6,3%

Growth EBIT -16,5% 7,8% 16,9% 4,8%

Growth Net Profit -10,2% -4,8% 18,4% 4,0% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 10,3 10,8 9,1 8,8

EV/CE 1,1 1,0 1,0 0,9









LU-VE MARKET PRICE: EUR10.65

Heat exchangers, refrigeration

Data





Reuters/Bloomberg: LUVE.MI LUVE IM


Source: FactSet

Performance

1m 3m 12m

Absolute 4,4% -4,5% 10,7%

Rel. to FTSE IT -1,8% -21,4% -11,1%


Source: FactSet



Hot Topics Given the macroeconomic slowdown in Europe and in Italy, understanding

the impact on refrigeration and air conditioning applications could be a key item for addressing 2020-21 prospects.

In our view the acquisition of Al Air represents a milestone for LU-VE: not only does the deal allow the entrance in new segments completing LU-VE products range and making the group a leader in ventilated products, but

we see also significant commercial synergies. Perceiving how the integration is proceeding is key for LU-VE evolution

LU-VE main raw materials, copper and aluminum are now on the downside. Investigating the impact on LU-VE’s P&L could help to define the company’s evolution.

Company profile

LU-VE is a leading producer of heat exchangers and ventilated products for non-

residential applications with revenues of EUR307 million in 2018, 16 plants (of

which 7 outside Italy), 12 commercial branches abroad, and a total of 2,655 employees at Dec-18. It is also present in the niche segments of close control and glass doors. The group, founded and still managed by Liberali family, has

reported average growth of about 10% in the past five years and strongly expanded abroad in the past few years thanks to the acquisition of Spirotech in India, Zyklus in the US and Al Air, a true game changing-acquisition finalized in

2019 which added >EUR100 million sales. Because of its lean cost structure,

healthy operating leverage and the quality recognized by its customers, the company has maintained EBITDA margins close to 12% in the past five years. LU-VE was listed on the AIM market following the business combination with the

SPAC Industrial Star for Italy 1 in Jul-15 and moved to MTA market segment in 2018.


Recent developments

LU-VE reported solid results in 1H19: organic growth topped 8.3% despite the macro economic slowdown in Europe, EBITDA adjusted grew by >40% with 180

bps improvement in margin, all the companies acquired performed well (Spirotech was up 25%, Zyklus sales were up 39% with EBITDA margin >15%, Al Air added EUR13.6 million of revenues in two months) and order backlog was up 80.4%

(+5.7% organically). In particular, we were impressed by the strong volume growth (+9.2% with sizeable market share gains) which continued also in July and August.

In addition, all the projects underway (new plant in Poland, plant relocation in

China, plant expansion in India, new plant in the US) are in line or ahead of schedule and this should pave the way for further margins improvements in future. Also 3Q19 was positive with sales up 34% (+6.1% organically) and baclog more

than doubled. On April 30, LU-VE closed the acquisition of Al Air, a division of Alfa Laval manufacturing air heat exchangers, with 2018 revenues of EUR108.1 million, 9.5% EBITDA margin (vs. 11.9% of LU-VE in 2018) and an attractive

growth rate (8.9% in the past three years). The total consideration was EUR67.1 million corresponding to 6.5x 2018 EBITDA including an earn-out based on 2019 EBITDA.

SWOT Analysis


Innovative products and low exposure to the Italian market

High entry barriers

Outstanding acquisition track record

Net debt, after the acquisition of Ail Air, needs to be reduced

High weight of goodwill (23% of the capital employed at Dec-18)

Limited liquidity and free float


Synergies and cross selling opportunities from Al Air

New plant in Poland should increase EBITDA margin

Expansion in the US market thanks to Zyklus

Raw material fluctuations (mostly copper and aluminum)

Currency fluctuations (in particular RUB and USD)

Integration costs of Al Air

Finami; 50,3%

G4 SrL; 17,6%

Free Float; 32,2%

10,0%

11,0%

12,0%

13,0%

14,0%

15,0%

0

50

100

150

200

250

300

350

2014 2015 2016 2017 2018




LU-VE


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 312,5 405,5 478,3 497,6 ROE 10.8% 11.8% 14.7% 13.8%



EBIT 19,7 27,0 37,1 39,9 Capex / Sales 9.0% 6.3% 3.2% 3.1%



Taxes -1,3 -4,8 -7,9 -9,3

Net Income 15,4 18,3 25,6 26,9

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,69 0,82 1,15 1,21

Growth Rates DPS 0,25 0,28 0,30 0,35

(EURm) 2018A 2019E 2020E 2021E BVPS 6,40 6,97 7,84 8,75

Growth Group Net Sales 13.6% 29,8% 18,0% 4,0%

Growth EBITDA 25,9% 30,7% 23,2% 6,7%

Growth EBIT 39,7% 37,1% 37,1% 7,7%


(x) 2018A 2019E 2020E 2021E

P/E 14,6 12,9 9,3 8,8

EV/CE 1,4 1,3 1,2 1,1




0,97 0,99 0,82 0,76






LVENTURE MARKET PRICE: EUR0.63

Venture Capital

Data





Reuters/Bloomberg: LVEN.MI LVEN IM


Source: FactSet

Performance

1m 3m 12m

Absolute 3.6% 6.1% 6.5%

Rel. to FTSE IT -2.6% -10.8% -15.3%


Source: FactSet



Hot Topics An update on the current market environment (both in terms of multiples

and new investments in startups) would be useful to have;

The 2019-22 Business Plan targets a EBITDA break even in 2019. It will be

useful to understand how the two major drivers (revenues and costs structure) are evolving in this respect;

An update on the current portfolio of startups both operationally and in terms of new rounds and growth opportunities;

A better understanding of management strategy on exits and what they put in place to smooth the process.

Company profile

LVenture Group SpA is a holding company, which engages in the venture capital

sector. It focuses on digital technology startups and manages the startup

accelerator LUISS EnLabs and The Startup Factory both of which born from a joint venture with LUISS Guido Carli University.

As of June 2019, the value of the portfolio was EUR18.2 million represented by

65 startups and Two accelerators (“ClubAcceleratori” and Startupbootcamp”).

More than 200 companies are part of the eco-system where LVenture operates

alone or in partnership with more than 100 investors (that brings the EUR13 million invested by LVenture to a total EUR49 million invested overall in

startups). The company is listed on the MTA segment and is headquartered in Rome.


Recent developments

In September 2019 the company disclosed its 1H19 results showing a 30% YoY growth in the investments (to the EUR1 million tune), Revenues of EUR2 million

and a positive EBIT of EUR0.1 million. The net income was substantially at break even.

In August 2019 the company closed a EUR6 million capital increase that, after

when the EUR2 million net debt at 1H19 is taken into account, would bring the

Net Financial Position to a positive Eur4 million.

The company announced a 2019-22 BP which targets to: a) grow revenues at a

36% CAGR from the 2018 level (EUR3.4 million); b) grow EBITDA at a 54% CAGR, c) grow net result to EUR2.4 million by 2022 (125% CAGR); d) invest

EUR3 million in 2019 and EUR4.5 million in 2022 (a compounded 40% CAGR from 2018); e) realize EUR2.2 million exits in 2019 and EUR9.7 million in 2022.

SWOT Analysis


One of the few VC player that has a set of profitable financials;

LVenture is an integral part of a wider eco-system to scale-up startups;

Experienced management team with a solid track record.

The top line stream seems not enough predictable;

The exit numbers need to increase;

The stock is not very liquid.


Expansion in Europe may provide surprises vs. the 2019-22 BP;

The launch of ELTIF funds may increase the investment in startups;

The new “Fondo Nazionale per l’Innovazione” may increase investments.

The overall size of the Italian VC market is small vs. other EU countries;

An established flow from exits is instrumental in reaching a financial balance;

Startup investments still need government support (fiscal benefits & others).

0,200

0,400

0,600

0,800

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

LVenture Group S.p.A.


Capello Luigi; 40,0%

Futura Invest; 6,0%

Free float; 54,0%

-140,0%

-120,0%

-100,0%

-80,0%

-60,0%

-40,0%

-20,0%

0,0%

-2,0

-1,0

0,0

1,0

2,0

3,0

4,0

2015 2016 2017 2018




LVENTURE


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 3,4 4,4 5,0 5,6 ROE 2,6% 1,5% 7,1% 7,3%

EBITDA -0,8 -0,4 0,3 0,3 Net Fin. Debt / Equity (x) -0,1 0,1 0,1 0,2

EBITDA margin -22,6% -8,2% 6,0% 5,0% Net Fin. Debt / EBITDA (x) 1,0 -8,6 8,8 14,6

EBIT 0,5 0,5 1,9 2,1 Capex / Sales n.m. n.m. n.m. n.m.



Taxes 0,0 0,0 -0,1 -0,2

Net Income 0,4 0,3 1,7 1,9

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,01 0,01 0,04 0,04

Growth Rates DPS 0,00 0,00 0,00 0,00

(EURm) 2018A 2019E 2020E 2021E BVPS 0,33 0,48 0,52 0,56


Growth EBITDA -16,6% -53,3% -182,4% -6,7%

Growth EBIT nm -4,8% 298,1% 13,2%

Growth Net Profit nm -14,3% 395,6% 11,8% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 72,6 84,7 17,1 15,3

EV/CE 2,03 1,02 0,99 0,82




8,68 7,26 6,31 5,97

Shareholders’ Equity 15,5 22,2 24,0 26,2 EV/EBITDA -38 -71 3170 118

Net Financial Debt / (Cash) -0,8 3,1 2,6 4,1 EV/EBIT 60 68 20.126 16.821




MAILUP MARKET PRICE: EUR4.46

IT services

Data





Reuters/Bloomberg: MAIL.MI MAIL IM


Source: FactSet

Performance

1m 3m 12m

Absolute 5,2% 18.9% 78.4%

Rel. to FTSE IT -1.0% 2.1% 56.6%


Source: FactSet



Hot Topics M&A: what are the main opportunities that you are analyzing? What

transaction multiples are you available to pay?

Dividend distribution: are you available to change your allocation of capital

and devote part of cash to dividend?

How’s going the integration of Datatrics compared to budget? When is it

scheduled the first earn-out and for which amount?

Which are the expected investments in hiring people and CAPEX for 2020

and where they will be concentrated?

Company profile

MailUp was founded in 2002 and it is currently one of the top ten companies in

Europe to provide SaaS-based marketing platforms that enable companies to

create, test and send data-driven automated campaigns via email and SMS. The Group is scaling up from service provider to consultancy advisor to current customers by also offering innovative marketing technology solutions and

professional consulting services. In addition, it developed sophisticated email editing tools offered by BEE (100%-controlled). Over the past 3 years, MailUp has carried out 5 acquisitions to reinforce its market share in email delivery in Spain

and Latam (Acumbamail) and in Northern Europe (Globase), to incorporate its

SMS wholesale provider (Agile Telecom) and to enter into the predictive

marketing based on AI (Datatrics). The Group serves over 22,000 clients in 115

countries. International revenues account for 44% of total.


Recent developments

In 9M19, MailUp recorded consolidated revenues at EUR42.5 million (+60% YoY), boosted mainly by SMS (+71% YoY to EUR30.7 million); email business was up

17% YoY to EUR9.7 million, inclusive of BEE (EUR1.9 million gross sales, +131% YoY). Datatrics sales were EUR1.5 million compared to around EUR1 million in FY18. 9M19 EBITDA was EUR3.3 million (+27.5% YoY) after EUR0.67 million

negative one-off recorded in 1H19 by Agile Telecom as an effect of unexpected increase in the cost of traffic applied since May 2018 by a telecom operator. They

are still in dispute with the telecom operator and there was no further impact in

3Q19.

SWOT Analysis


Highly talented and motivated people

Scalable business

Positive net cash position

Dependence on key talents

Small size compared to competitors on big clients

High goodwill (EUR16.7 million at June 2019, 25% market cap)


Expansion outside Italy

Significant cross-selling opportunities into existing customers base

Potential M&A to expand product offering

Scarcity of talented personnel

M&A risk

Increasing regulatory requirements and connected reputational risk

Founders ; 53,7%

Pronti Gianluca;

7,2%

BMC Holding ; 4,4%

Employees; 1,2%

Treasury; 0,2%

Free float; 33,3%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

0

10

20

30

40

50

2014 2015 2016 2017 2018




MAILUP


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 39.0 59.9 71.3 83.1 ROE 8.4% 8.1% 14.6% 18.4%

EBITDA 3.8 4.8 7.3 9.6 Net Fin. Debt / Equity (x) -0.4 -0.1 -0.2 -0.2

EBITDA margin 9.7% 8.0% 10.2% 11.6% Net Fin. Debt / EBITDA (x) -1.7 -0.4 -0.5 -0.6

EBIT 1.9 2.4 4.5 6.4 Capex / Sales 8.5% 6.4% 6.2% 6.0%



Taxes -0.7 -1.1 -1.8 -2.3

Net Income 1.3 2.7 4.1 4.9

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0.08 0.09 0.18 0.27

Growth Rates DPS 0 0 0 0

(EURm) 2018A 2019E 2020E 2021E BVPS 1.07 1.15 1.34 1.61


Growth EBITDA 30.9% 27.8% 50.7% 32.3%

Growth EBIT 48.2% 27.1% 85.6% 42.8%


(x) 2018A 2019E 2020E 2021E

P/E 27.8 50.3 24.8 16.6

EV/CE 6.3 4.2 3.8 3.4





Net Financial Debt / (Cash) -6.4 -1.9 -3.5 -5.9 EV/EBIT 15.6 27.7 14.5 9.8




MOLMED MARKET PRICE: EUR0.35

Biotech

Data



Enterprise Value (EURm): na


Reuters/Bloomberg: MLMD.MI MLM IM


Source: FactSet

Performance

1m 3m 12m

Absolute 2.8% -0.1% 18.4%

Rel. to FTSE IT -3.4% -17.0% -3.3%


Source: FactSet



Hot Topics 9M19 results showed a strong growth of the GMP business (+53% YoY). It

will be interesting to understand at which point the company is in the uptake curve of the production for GSK and if there are other talks the company is having for additional contracts;

With reference to the point above, the company still reported an operating loss (but a break even at EBITDA level). It will be useful to understand what

the breakeven point and the company’s cost structure to ultimately understand when a more sustainable P&L will be reached;

On a more strategic note, it will be useful to understand how management thinks to balance the GMP and pure research activities in a single company;

What is the expected cash flow profile of the current business.

Company profile MolMed is a clinical stage biotech company focused on research, development,

manufacturing and clinical validation of innovative therapies. MolMed obtained the GMP manufacturing authorization for cell & gene therapies ex vivo for its proprietary products as well as for third parties and/or in partnership (Strimvelis,

an Orchard gene therapy for the ADA-SCID). With reference to GMP development and manufacturing activities for third parties, MolMed signed numerous partnership agreements with leading European

and US companies. MolMed’s is also developing a new therapeutic platform based on Chimeric Antigen Receptor (CAR), both autologous and allogeneic where, the most

advanced product, CAR-T CD44v6 in March 2019 received the authorization to

start human clinical trials in onco-hematologic indications (AML and MM), following an extensive pre-clinical phase. MolMed is also developing a pipeline based on NK (Natural Killer) cells, following

a research agreement signed in 2018 with Glycostem. The company is listed on the MTA segment of Borsa Italiana.


Recent developments In October 2019 the company withdrew for commercial reasons the Conditional Marketing Authorization of Zalmoxis, which has been adopted by the European Commission on 9 October 2019. The company stated it will direct its investments

and resources, until now destined to Zalmoxis, to activities that better contribute to its business objectives. Always in October, the Council of the Lombardy Region approved the "agreement

for innovation" scheme involving the Region, the Ministry of Economic Development (MiSE) and MolMed, with the scope to co-finance, in the form of a grant funding, the research costs of MolMed in the CAR (Chimeric Antigen Receptor) field. The Region’s resolution is part of the broader approval process

for the project proposal, called "New CAR therapies for the treatment of cancer patients (NUCAR)" presented by MolMed to MiSE in order to access the "Fund for sustainable growth" (“Fondo per la crescita sostenibile”), currently under

discussion and whose outcome will follow the presentation of the final projects by MolMed and MiSE’s approval.

SWOT Analysis


Strong track record in GMP;

CAR-T are at the forefront in terms of innovation and attracts interests;

Experienced management team.

Poor track record in drug discovery;

Negative cash flow generation;

Operating losses.


Italy has a leadership position in GMP with a supportive eco-system;

Chances of splitting the GMP and drug discovery businesses;

M&A appeal.

Competition for capital in CAR-T is high;

Source of financing may include fresh capital from shareholders;

Governments are cutting on healthcare budgets.

0,000

0,100

0,200

0,300

0,400

0,500

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

MolMed S.p.A. FTSE Italia All-Share

Berlusconi Silvio; 24,8%

Compagnie

d'investissements Monac…Free

float; 68,0%

-200,0%

-150,0%

-100,0%

-50,0%

0,0%

-30,0

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

2014 2015 2016 2017 2018




MOLMED

No consensus available


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 28.5 ROE Nm

EBITDA -3.63 Net Fin. Debt / Equity (x) -0.7

EBITDA margin Nm Net Fin. Debt / EBITDA (x) 4.6

EBIT -5.2 Capex / Sales Na

EBIT margin Nm Pay Out Ratio 0

Profit before taxes -4.1

Taxes 0

Net Income -4.1

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS -0.01

Growth Rates DPS 0.0

(EURm) 2018A 2019E 2020E 2021E BVPS 0.05

Growth Group Net Sales 23.4%

Growth EBITDA Na

Growth EBIT Na

Growth Net Profit Na Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E -40.0

EV/CE 20.5

Balance Sheet P/BV 6.94

(EURm) 2018A 2019E 2020E 2021E Dividend Yield (%) 0

Capital Employed 7.2 EV/Sales

5.17

Shareholders’ Equity 23.6 EV/EBITDA Nm

Net Financial Debt / (Cash) (16.4) EV/EBIT Nm




MONDADORI MARKET PRICE: EUR2.04

Media

Data





Reuters/Bloomberg: MNDI.MI MN IM


Source: FactSet

Performance

1m 3m 12m

Absolute 11.0% 46.1% 32.3%

Rel. to FTSE IT 4.8% 29.3% 10.5%


Source: FactSet





Dividend distribution: any target of sustainable dividend policy?

Retail business: what king of strategy will be implemented to improve profitability and capital allocation?

Restructuring costs: which is the budget for 2020 and 2021?

Efficiency policy: which is the target of savings for the next 2 years?

What is the expectations for magazine and online advertising in 2020 and for book market?

Company profile

The Group is one of the top publishing companies in Europe and it is Italian

leader in book market (25% market share) and in magazine (29% market share).

Its portfolio of activity also includes retail (bookstore, megastore, franchising and e-Commerce). Book publishing is considered core business while magazine is under continuing rationalization: in 2018 Mondadori signed an agreement to sell

Mondadofi France to Reworld Media for EUR70 million+EUR5 million earn-out and in 2019 announced the disposal of five marginal magazine at EBITDA break-even in 2019. Book represents 77% of consolidated EBITDA as at end of June

2019.


Recent developments

In 9M19 revenues stabilized (EUR659 million like in 9M18) thanks to a recovery of the top line in 3Q19 (+4.2% to EUR279 million) driven by book division growth

(+7.5%) which more than offset high single-digit decline in magazine. EBITDA was up 21% YoY to EUR78 million and net profit closed at EUR23 million (vs EUR182 million net loss in 9M18). Net debt was EUR210 million. The BoD approved the

transfer of the magazine business unit to wholly-owned single company to create the conditions to be ready for strategic opportunities and partnerships.

SWOT Analysis


Leadership in the both Italian trade and educational book market

Best-in-class margins in book division

Low leverage (Net debt/EBITDA below 1x)

Structurally declining circulation in magazine

Very low ROI in retail business

Continuing restructuring costs


M&A opportunities abroad

Further rationalization in retail and magazine division

Return to dividend

Increasing competition in book by international players

M&A risk

Advertising downtrend

1,2001,4001,6001,8002,0002,200

Mondadori FTSE Italia All-Share

Fininvest S.p.A.; 53,3%

Silchester International; 12,6%

Free float; 34,1%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

0

500

1.000

1.500

2014 2015 2016 2017 2018




MONDADORI


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 891.1 873.2 853.4 840.6 ROE NM 16.9% 16.3% 13.8%



EBIT 51.2 67.0 69.4 70.6 Capex / Sales 2.2% 2.5% 2.5% 2.6%



Taxes -212.2 -22.6 -22.2 -23.3

Net Income -177.0 34.0 39.3 38.6

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0.12 3.12 3.60 3.54

Growth Rates DPS 0.00 0.04 0.05 0.07

(EURm) 2018A 2019E 2020E 2021E BVPS 0.62 0.76 0.87 0.94

Growth Group Net Sales 160.5% -2.0% -2.3% -1.5%

Growth EBITDA 161.7% 20.5% 2.9% 2.3%

Growth EBIT 199.4% 30.8% 3.7% 1.7%

Growth Net Profit NM NM 15.4% -1.7% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 17.4 14.2 13.0 13.0

EV/CE 2.2 2.4 2.1 1.9





Net Financial Debt / (Cash) 147.1 34.6 18.4 -1.0 EV/EBIT 10.9 9.3 8.5 8.1




NEODECORTECH MARKET PRICE: EUR3.42

Industrials

Data





Reuters/Bloomberg: NDT.MI NDT IM


Source: FactSet

Performance

1m 3m 12m

Absolute -14.1% -15.8% 17.9%

Rel. to FTSE IT -20.3% -32.6% -3.8%


Source: FactSet



Hot Topics The reference market is currently suffering from a decline in demand that

started at the end of 2018. An update on market conditions will be helpful to guide investors;

In the context just described Neodecortech seems to be gaining market share, outperforming peers. An update of the main competitive dynamics will be helpful in understanding the sustainability of this trend;

An update of the inventory levels in the entire chain (company, distributors) would be helpful to understand the short-term prospects.

Company profile

The company designs, produces and commercializes décor paper, finish foils,

melamine films and luxury vinyl tiles with the mission of enriching any surface

with a distinctive Italian flavor. The company therefore operates in the niche of decorative surfaces and its production cycle is entirely based in Italy. The company sells to third party the electric and thermal energy in surplus with its

own needs (this is also done to be reassured of the competitiveness of its processes).

The top management is composed by external management with long-standing

experience in the industry.


Recent developments

Preliminary 9M19 data showed revenues up 4.1% YoY, accelerating vs. the 1H19 trend, and a NFP at EUR43.5 million (a YoY improvement of EUR8.9 million and a

sequential improvement of EUR4.8 million).

The company plans to move to the MTA (ideally STAR segment) soon and, in the

context of this plan, through an accelerated book building it increase the floating to >the 35% threshold needed for the STAR segment.

1H19 showed a mildly growing top line (+2.2% YoY) and a declining EBITDA (-

13.6% YoY) due to listing costs and stock grant plans. Adj. EBITDA was flat (-2.7% YoY) and also the margin remained above the 11% mark. Cash generation was negative (around EUR4 million) due the seasonality which assumes the company to

burn cash in 1H on NWC absorption and dividend payment.

At the end of October the company closed the disposal of CDG International for

a total consideration of EUR2,5 million.

The company has a buyback program in place, with the latest purchase announced

in Mid-November 2019.

SWOT Analysis


High flexibility in production thanks to the vertical integration;

Active in a sector where the Italian pedigree is a plus;

Full control of the production facilities.

Limited size vs. competition;

Stock is not very liquid;

Customers/market exposure is limited to a restricted number.


Open approach to co-design and partnership may spur growth;

M&A appeal;

The move to MTA/STAR may increase the stock liquidity.

Duty tariffs may impact revenues or margins;

High leverage may limit investments;

Customer preferences may change overtime towards new materials.

2,0002,5003,0003,5004,0004,500

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

Neodecortech SpA


Famiglia Valentini;

63,9%AZ Fund; 5,2%

Free float; 30,9%

0,0%

20,0%

40,0%

60,0%

80,0%

100,0%

120,0%

140,0%

0

20

40

60

80

100

120

140

2014 2015 2016 2017 2018




NEODECORTECH


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 132,1 139,8 148,0 ROE 10,2% 8,7% 10,5%

EBITDA 18,0 17,9 19,8 Net Fin. Debt / Equity (x) 0,8 0,7 0,6

EBITDA margin 13,6% 12,8% 13,3% Net Fin. Debt / EBITDA (x) 2,5 2,4 2,0

EBIT 10,6 10,0 11,5 Capex / Sales 5,8% 5,4% 5,0%

EBIT margin 8,0% 7,1% 7,8% Pay Out Ratio 32,6% 30,0% 27,8%

Profit before taxes 7,6 7,0 9,1

Taxes -1,6 -1,6 -2,0

Net Income 6,0 5,4 7,1

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,46 0,47 0,56


(EURm) 2018A 2019E 2020E 2021E BVPS 4,50 4,70 5,20


Growth EBITDA 26,6% -0,4% 10,3%

Growth EBIT 77,3% -6,0% 15,5%

Growth Net Profit -209,1% -9,8% 31,0% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 7,4 7,3 6,1

P/OpCFPS 0,87 0,41 0,37

Balance Sheet P/BV 0,76 0,73 0,66

(EURm) 2018A 2019E 2020E 2021E Dividend Yield (%) 4,4% 4,1% 4,6%

Capital Employed 102,9 105,1 106,4 EV/Sales

0,66 0,63 0,57

Shareholders’ Equity 58,6 62,0 67,4 EV/EBITDA 4,8 4,9 4,2

Net Financial Debt / (Cash) 44,3 43,1 39,0 EV/EBIT 8,2 8,8 7,3




OPENJOBMETIS MARKET PRICE: EUR7.85

Industrials

Data





Reuters/Bloomberg: OJM.MI OJM:IM


Source: FactSet

Performance

1m 3m 12m

Absolute 16.3% 12.1% -0.3%

Rel. to FTSE IT 10.1% -4.7% -22.0%


Source: FactSet



Hot Topics

Are discussions for potential M&A deals already in place?

Do you expect M&A consolidation in the industry to continue?

Guidance for 2020 top line and EBITDA margin

An update on the current market environment (growth rates) would be

useful to have

Company profile

Openjobmetis is an employment agency established in 2011 as a result of the

merger of Openjob and Metis. Listed since December 2015, Openjobmetis is the

first and only employment agency on the STAR segment of the Italian Stock Exchange and is positioned among the leading Italian operators in its field, with revenues of approximately EUR594.3 million in Dec-18. The company relies on a

network of more than 130 branches distributed throughout Italy and it operates through a series of specialised areas: Healthcare, Industrial, Banking and Finance, Large-Scale Retail Trade, I&CT, Horeca, Family Care, Agro-Industrial, Diversity

Talent and Naval. The range of services is completed by the subsidiary Seltis,

specialised in the recruitment and selection of middle/top level employees, and Corium, leader in outplacement. In 2018, Openjobmetis acquired 100% of Coverclip, now Meritocracy, a platform specialised in personnel recruitment, in

particular for digital professions, which also uses components of artificial intelligence in recruitment and the matching of positions. In the same year, the firm acquired 70% of HC, an educational company which carries out initiatives

dedicated to personnel development and motivation.


Recent developments

In Nov-19, Openjobmetis reported 3Q19 and 9M19 results. As consequence of a

3.5% decline in 3Q19 revenues (better result compared to previous quarters),

9M19 turnover moved from EUR443.6 million to EUR415.9 million, reporting a 6.2% drop (mainly because of temporary work revenues). EBITDA rose from EUR16.9 million in 9M18 to EUR17.9 million in 9M19 (+5.5% growth), implying a

4.3% margin. We stress that the picture changes drastically stripping out the

positive effect of IFRS16: 9M19 EBITDA would be EUR15.0 million, corresponding to a 3.6% margin. As for 9M19, both EBIT and Net Income suffered a moderate decline in absolute term and in profitability: the former moved from EUR14.5

million (3.3% margin) to EUR12.0 million (2.9% margin), while the latter decreased from EUR9.4 million (2.1% margin) to EUR7.9 million (1.9% margin). 9M19 Net Debt was EUR19.9 million after IFRS16 (EUR7.9 million before IFRS16) vs.

EUR24.2 million in Dec-18. According to the 3Q results press, the economic scenario envisaged for the remaining part of 2019 should be slightly more favorable to the temporary work market than in the first months of the year.

SWOT Analysis


Relevant market share (5th largest employment agency in Italy)

Low customers concentration (top 10 customers represents <12% sales)

Significant M&A track record (5 acquisitions delivered since 2004)

High exposure towards micro and SME (2/3 of revenues)

Small size compared to international competitors

Intangible assets and goodwill represented ¾ of Equity in Sept-19


Signing of new temporary staffing collective contract (CCNL)

Launch of “Family Care”: reference market growing at 1.4% per annum

International expansion

Lasting correlation with Italian GDP

Increasing competition in SME segment

Regulation framework negative changes

6,500

7,000

7,500

8,000

8,500

9,000

9,500

10,000

Openjobmetis FTSE Italia All-Share

Omniafin; 17,8%

MTI Investimenti;

5,0%

Quaestio; 6,7%Treasury

shares; 66,8%

Free float; 3,7%

0,0%

1,0%

2,0%

3,0%

4,0%

0

100

200

300

400

500

600

700

2014 2015 2016 2017 2018




OPENJOBMETIS


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 594,3 562,3 569,2 578,8 ROE 13,5% 11,2% 10,6% 10,5%



EBIT 19,4 18,1 19,1 18,0 Capex / Sales 0,2% 0,2% 0,2% 0,2%



Taxes -5,6 -5,8 -5,9 -5,6

Net Income 12,4 11,6 12,3 11,6

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,96 0,87 0,91 0,93

Growth Rates DPS 0,23 0,22 0,23 0,22

(EURm) 2018A 2019E 2020E 2021E BVPS 7,04 7,80 8,60 8,89

Growth Group Net Sales 1,8% -5,4% 1,2% 1,7%

Growth EBITDA 0,0% 11,7% -11,9% 16,8%

Growth EBIT -0,6% -6,9% 5,5% -5,6%

Growth Net Profit 1,1% -5,9% 5,5% -5,6% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 8,3 9,0 8,6 8,4

EV/CE 1,1 1,0 0,9 0,9









PITECO MARKET PRICE: EUR6.35

IT services

Data





Reuters/Bloomberg: PITE.MI PITE.IM


Source: FactSet

Performance

1m 3m 12m

Absolute 11.4% 28.0% 41.7%

Rel. to FTSE IT 5.2% 11.2% 20.0%


Source: FactSet





Collaboration with Fintech: are you planning new initiatives after the

initiatives with AirPlus and Ebury?

Can you provide a guidance for 2020?

Timetable for potential move into STAR?

Company profile

The Group designs, develops and implements proprietary software and solutions

for corporate cash management and financial planning with a leading domestic

position in the niche of corporate treasury management and financial planning software. It works with 600 large/mid corporate clients with the exception of banks and public administrations. The Group controls also Myrios, an Italian

software house offering risk management, capital markets and compliance software to banks and large corporate, and Juniper Payments, a software house leader in USA with proprietary solutions for digital payment and clearing house

services to 3,300 American banks. Around 65% of sales are recurring fees. It was

listed on AIM in July 2015; in September 2018 it moved to MTA.


Recent developments

In 1H19 revenues jumped by 22.8% to EUR11.1 million (+7.8% YoY like-for-like). New clients were 30. EBITDA rose 30.7% to EUR4.3 million (+8.4% like-for-like),

equal to 39.1% margin. Myrios contributed by EUR1.4 million on revenues and EUR0.7 million on EBITDA. Net profit was EUR2 million and net debt stood at EUR14.8 million incorporating EUR4 million free cash flow generation.

SWOT Analysis


Domestic leadership in software for cash management

Good track record in M&A

High visibility (65% of revenues are recurring fees)

High goodwill (>95% of total equity)

Juniper Payments works with a limited number of clients

Shortage of talented people


Expansion into mid-market segment

M&A growth

New modules offer

Risk of domestic slowdown

Risk of change in regulatory environment

Risk of increasing competition

3,200

4,200

5,200

6,200

Piteco FTSE Italia All-Share

Lillo S.p.A.; 55,7%

Ennismore Fund; 7,8%

Podini Marco;

5,7%

Podini Maria Luisa; 5,7%

Free float; 25,2%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

0

5

10

15

20

25

2015 2016 2017 2018




PITECO


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 20.2 25.3 28.0 30.1 ROE 16.9% 17.6% 17.6% 18.3%



EBIT 7.1 7.9 9.2 10.4 Capex / Sales 3.1% 2.3% 2.2% 2.2%



Taxes -1.4 -1.4 -1.7 -1.9

Net Income 5.3 6.1 7.2 8.2

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0.34 0.36 0.41 0.47

Growth Rates DPS 0.16 0.19 0.23 0.26

(EURm) 2018A 2019E 2020E 2021E BVPS 1.71 1.89 2.24 2.47


Growth EBITDA 44.6% 29.6% 11.8% 9.8%

Growth EBIT 42.5% 11.3% 15.9% 13.3%


(x) 2018A 2019E 2020E 2021E

P/E 18.7 17.8 15.4 13.7

EV/CE 2.5 2.4 2.4 2.4



Capital Employed 57.9 56.1 53.7 51.3 EV/Sales

4.82 5.42 4.60 4.05






PRIMA INDUSTRIE MARKET PRICE: EUR14.84

Engineering and machinery

Data





Reuters/Bloomberg: PRII.MI PRI IM

52-Week Range (EUR): 11.50 22.25

Source: FactSet

Performance

1m 3m 12m

Absolute 23,1% 25,8% -25,1%

Rel. to FTSE IT 16,9% 8,9% -46,8%


Source: FactSet



Hot Topics A backlog down 18% at Sept-19 and the reduction of the order intake (-

11.7% in 9M19), mostly due to automotive customers, are worrying signals, even if there was a recovery in the third quarter (order intake +10.8%). The company is claiming a recovery in the second half of 2020 but further

indications in this respect will be helpful.

The company will present a new business plan at the end of the year.

Understanding the main strategic options in terms of capex and R&D is a priority in our view.

Prima Industrie is implementing a cost containment and efficiency recovery plan to face the current difficult market conditions. Understanding its impact on P&L is a key topic in our view.

Company profile

Prima Industrie heads a leading Group in developing, manufacturing and

marketing of laser systems for industrial applications, sheet metal processing

machinery, as well as industrial electronics and laser technologies. With over 40 years of experience the Group can count on >13,000 machines installed in more than 80 countries worldwide and is among the main worldwide manufacturers in

its own reference market. The Group has about 1,850 employees and manufacturing sites in Italy, Finland, USA and China. Ltd. The company has 3 Business Units: Laser and sheet metal processing machines (Prima Power),

Industrial electronics and laser technologies (Prima Electro) and Additive

Manufacturing (Prima Additive): dedicated to the design, production and marketing of turnkey solutions for the main technologies in the field of Additive Manufacturing. In 2018 Prima Industrie reached EUR467 million revenues of

which 82% outside Italy. Prima Industrie is listed on the Italian Stock Exchange since 1999 (STAR segment).


Recent developments

After a dramatic first half of the year, which saw flat revenues with a backlog dropped by 29% and the order intake down 21% %, there was some recovery in

the third quarter (order intake +10.8%). In 1H19 EBITDA margin adjusted declined to 7.9% vs. 9.2% in 1H18 and net result adjusted was down 39% but 3Q19 was somewhat better with a stable EBITDA margin. Still, we highlight the

weakness in Europe and APAC, with the exception of the Chinese market. Against a marked slowdown in the automotive market, there was a good trend in orders

from the aerospace segment and a positive trend in the after-sales market Net

debt increased significantly reaching EUR141.7 million, also due to EUR25.7 million impact from the IFRS 16 first time adoption and growing NWC which should be recovered in the coming months. In this challenging context, the Group is

implementing important cost containment and efficiency recovery measures aimed at giving results starting from the last quarter of the current year and above all in the medium term, without however affecting its own development plans and

investment. The company guided for sales at EUR420-440 million in 2019, with a slowdown of 5-10%, with an EBITDA margin around 9% (vs. 9.7% in 2018).

SWOT Analysis


Strong and consistent product innovation (R&D at 5.1% of sales)

Wide geographical diversification

Lean cost structure makes PI resilient even in a downturn cycle

The reference market of Prima Industrie is strongly cyclical

Group’s structure complexity due to past external growth

Strong competition in China with several new players in the market


Effective cost cutting actions to face the reference market slowdown

New plants in Germany, Finland and Italy could increase margins

Development of Additive Manufacturing (established in 2018)

Machine tools industry is turning down since mid-2018 worldwide

Dropping fiber laser prices due to the entry of new Chinese players

Raw material price fluctuations

10,000

15,000

20,000

25,000

30,000

Prima Industrie FTSE Italia All-Share

The Rahanima

Trust; 29,1%

Lee; 10,0%

Yunfeng Gao; 10,0%

Management; 7,4%

Credit Agricole;

5,2%

Free Float; 38,4%

8,0%

8,5%

9,0%

9,5%

10,0%

0

100

200

300

400

500

2014 2015 2016 2017 2018




PRIMA INDUSTRIE


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 466,9 433,1 436,0 446,5 ROE 14,3% 4,2% 5,9% 7,6%



EBIT 28,0 15,5 18,5 22,1 Capex / Sales 3,0% 3,5% 3,6% 3,6%



Taxes -2,6 -2,8 -3,6 -4,8

Net Income 24,1 6,7 9,8 13,1

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 2,19 0,66 0,92 1,24

Growth Rates DPS 0,44 0,30 0,34 0,27

(EURm) 2018A 2019E 2020E 2021E BVPS 16,19 15,36 15,99 16,46


Growth EBITDA 4,4% -13,6% 7,6% 9,0%

Growth EBIT 6,6% -44,7% 19,4% 19,5%

Growth Net Profit 28,9% -72,0% 45,6% 33,5% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 7,0 22,5 16,1 12,0

EV/CE 1,1 1,0 1,0 1,0




0,55 0,61 0,58 0,56






SABAF MARKET PRICE: EUR12.66

Industrials

Data





Reuters/Bloomberg: SABF.MI SABF IM


Source: FactSet

Performance

1m 3m 12m

Absolute -0.2% -6.2% -7.5%

Rel. to FTSE IT -6.4% -23.1% -29.2%


Source: FactSet



Hot Topics Cross selling seems to be a major factor that should drive SABAF sales. An

update on that front with some operational examples of how the strategy has been developing to date will be useful;

The FY2019 guidance assumes important action on costs (indirect, logistics, overtime/personnel) and on efficiencies which required a marked improvement vs. the trend showed in 1H19. An update on these efforts will

be useful;

With reference to the point above, how the integration of CMI is

progressing would be useful. Is it a factor that eases the already mentioned efficiencies and cost optimization actions or it is delaying them?

Company profile

Sabaf is one of the world’s leading manufacturers of components for household

cooking appliances with a market share of around 50% in Europe and a global

share of about 10%. Founded in 1950, today it has more than 1,071 employees and 10 manufacturing sites in Italy, Brazil, Turkey and China. The production includes taps, thermostats and burners for gas appliances, hinges and electronic

components for household appliances.

The company invests about 3% of its annual turnover in R&D. Characterized by a

strong vertical integration, the Company also manufactures the machinery necessary to produce and assemble its products, thus obtaining maximum

efficiencies in both processes.

Sabaf has been listed on the Milan Stock Exchange since 1998 and since 2001 is

part of (STAR).


Recent developments

In September 2019 the company closed the acquisition of CMI, which quadruples the size of the company in the hinges segment allowing SABAF to achieve a

leadership position on a global scale. The company now combines its consolidated leadership in gas burners and valves with the one just achieved in the hinges sector and is a reference partner for all manufacturers of household appliances.

3Q19 results showed revenues up 5.2% YoY and EBITDA flat YoY. EBIT was

down 23.6% YoY. In the 1H19 results SABAF showed flat revenues but declining

EBITDA and EBIT. The decline mostly related to Middle East & Africa (-38.4% YoY) and to product mix (Accessories declined 16.5%) which impacted also the

profitability.

The company has a buyback program in place, with the last purchase done in

August 2018.

In May 2019 the company was awarded the “Best Managed Companies Italia 2019”

by Deloitte.

SWOT Analysis


Strong leadership in Europe;

Deep skills in innovation and quality, high efficiency;

Direct manufacturing presence in Brazil, Turkey and China.

High concentration of revenues with large appliances manufacturers;

Large exposure to mature markets;

Reference market growth is limited.


Cross selling in terms of products;

Development of new markets/clients;

Further M&A.

Customers consolidation;

Volatility in commodity prices used for manufacturing;

Duty tariffs may limit the flexibility.

8,000

13,000

18,000

Sabaf S.p.A. FTSE Italia All-Share

Saleri Giusepp;

28,3%

Quaestio Capital; 28,8%

NN Group; 10,0%

Bulgarelli Claudio;

7,4%

Free float; 25,5%

17,5%

18,0%

18,5%

19,0%

19,5%

20,0%

20,5%

21,0%

-

50,0

100,0

150,0

200,0

2014 2015 2016 2017 2018




SABAF


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 150,6 158,3 185,1 192,3 ROE na na na na

EBITDA 30,0 28,0 32,0 33,7 Net Fin. Debt / Equity (x) na na na na


EBIT 16,2 13,2 15,7 17,3 Capex / Sales 7,6% 6,2% 7,1% 8,4%



Taxes -5,3 -2,9 -3,9 -4,3

Net Income 15,6 8,8 10,4 11,6

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 1,18 0,77 0,91 1,02

Growth Rates DPS 0,56 0,35 0,43 0,47

(EURm) 2018A 2019E 2020E 2021E BVPS 10,52 10,85 11,46 12,15


Growth EBITDA -3,3% -6,8% 14,5% 5,3%

Growth EBIT -18,8% 19,0% 10,5%

Growth Net Profit -43,6% 17,6% 12,1% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 10,7 16,4 13,9 12,4

EV/CE 1,15 1,13 1,09 1,06




1,50 1,37 1,14 1,07






SALCEF GROUP MARKET PRICE: EUR9.40

Industrials

Data





Reuters/Bloomberg: - -


Source: FactSet

Performance

1m 3m 12m

Absolute -1.0% -1.5% -1.6%

Rel. to FTSE IT -7.2% -18.4% -23,4%


Source: FactSet



Hot Topics M&A and capex are the two main uses of proceeds stated by the firm.

Regarding foreign M&A, is there a geographical preference (EU vs, RoW)? Are discussion/due diligence in place for some transactions?

Still on the acquisitions side, have you already identified an ideal target for entering into complementary infrastructure segments?

Which is the expected contribution of the renewal/expansion of the Aprilia plant?

Is the listing of the STAR segment expected for first half or second half 2020?

Company profile

Founded in 1949, Salcef is a leading global player in the fields of design,

construction and maintenance of railway and metro infrastructures, as well as the

supply of equipment and services. The company can boast an excellent acquisitions track record: over the decades, it acquired a series of companies already active in the railway infrastructure sector, broadening its field of action

and creating a structure able to carry out increasingly complex projects. Currently, Salcef operates with around 1,000 permanent employees in 6 complementary divisions: 1) Track works; 2) Railway Electrification & Signaling; 3)

Railway Materials; 4) Railway Machinery; 5) Multidisciplinary Railway Projects; 6)

Engineering & Design. Salcef was listed in November 2019 as result of its Business Combination with SPAC Industrial Stars of Italy 3. On its first day of listing, the leading firm in the railway sector reached a market cap of EUR384.4 million,

becoming the second largest listed company on the AIM Italia market. The proceeds will be used to finance M&A deals and stated capex in the coming years.


Recent developments

Salcef reported 1H19 results showing a stable top line but improved margins. Despite VoP kept unchanged at EUR155 million, EBITDA grew 4.8% to EUR34.3

million (vs. EUR32.6 million), benefitting from a different commission mix (minor sales on the low-margin Multidisciplinary Railway Projects business unit), which corresponded to a 22.2% margin (21.1% in 1H18). The operating profit rose to

EUR28.4 million (vs. EUR27.3 million in 1H18, +4.1% YoY) despite higher D&A (EUR5.8 million in 1H19 vs. EUR5.4 million in Jun-18). As for the bottom line, net

profit slightly increased from EUR18.1 million in 1H18 to EUR18.9 million in Jun-

19, leaving the net margin broadly stationary around the 12% figure. Net Debt reached EUR21.7 million (before EUR100 million capital increase and EUR30 million extraordinary dividend) from EUR2. million in Dec-18 mainly due to NWC

absorption. In July, Salcef acquired Coget, an Italian company specialized in construction and maintenance of high, medium and low voltage power distribution lines and electric contact lines (catenary) for electric traction, for a total

consideration of around EUR15 million (implicit 4x 2019 EV/EBITDA multiple) plus an earn-out capped at EUR4.5 million.

SWOT Analysis


Substantial barriers to entry (capital intensity, specialised workforce)

High visibility of earnings due to multi-year contracts

Internationally recognized capabilities in railway const. and maintenance

Lack of geographical diversification (81% of sales from Italy in 1H19)

Single customer concentration (RFI originated around 80% of turnover)

Low margin of commission in Multidisciplinary Railway Projects division


M&A opportunities (fragmented market) leveraging on track record

Strong growth expected in Western EU investments (EUR8.6bn in 21-23)

The company plans the listing on the STAR segment by 2020

Rising competition in the Italian landscape

Potential change in industry regulation

Execution risk

8,000

8,500

9,000

9,500

10,000

10,500

11,000

11,500

Salcef FTSE Italia All-Share

Salciccia family; 74,0%

Free float; 26,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

0

50

100

150

200

250

300

350

2015 2016 2017 2018




SALCEF GROUP


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 312,3 324,0 350,0 370,0 ROE 21,4% 15,1% 15,5% 13,9%


EBITDA margin 20,7% 21,0% 20,9% 19,7% Net Fin. Debt / EBITDA (x) 0,0 -0,8 -1,0 -1,3

EBIT 49,2 56,0 59,0 57,0 Capex / Sales 7,0% 8,6% 5,7% 4,1%



Taxes -15,6 -18,0 -16,0 -16,0

Net Income 29,4 37,0 42,0 41,0

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,78 0,94 1,07 1,04

Growth Rates DPS 0,40 0,40 0,40 0,40

(EURm) 2018A 2019E 2020E 2021E BVPS 3,67 6,19 6,87 7,51


Growth EBITDA 25,9% 5,1% 7,4% 0,0%

Growth EBIT NA 13,9% 5,4% -3,4%

Growth Net Profit NA 25,9% 13,5% -2,4% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 12,0 10,0 8,8 9,0

EV/CE 2,5 1,6 1,4





Net Financial Debt / (Cash) 2,0 -53,0 -71,0 -96,0 EV/EBIT 7,2 5,3 4,8 4,5




SHEDIR PHARMA MARKET PRICE: EUR7.14

Healthcare

Data





Reuters/Bloomberg: SHE.MI SHE IM


Source: FactSet

Performance

1m 3m 12m

Absolute 0.6% 3.2% Na

Rel. to FTSE IT -5.6% -13.7% na


Source: FactSet



Hot Topics An update on the recent product launches would be helpful also to model

future introduction;

the current end-market conditions and hints on price-pressure in particular

will be useful to discuss;

An update on the product pipeline short and long term;

M&A and business development options could be add-on to the organic growth useful to debate with the management.

Company profile Shedir Pharma Group, founded in 2008, is one of the main Italian nutraceutical

companies. Shedir focuses on: a) R&D, a team of 13 people which has developed 120+ brands in 15+ therapeutic areas; b) Marketing and Sales, leveraging on a capillary sales network of 800+ exclusive agents, which ranked 2nd in Italy for

number of contacts with doctors (Abacam data). In 2017, the company entered the pharmaceutical market, acquiring ca. 20 drugs. Lastly, the group has recently started an international process, initially relying on

local distributors with their own sales network. Shedir’s headquarters are in Piano di Sorrento (NA); it served over 6,000 customers in 2018 and currently employs more than 90 people.


Recent developments

During 1H19 Shedir strengthened its product portfolio by launching nutraceutical pet products, positioning itself in a fast-growing market. The main contributor to

1H19 sales growth is the pharma division, which registered +36% YoY, whereas the Shedir division grew by ca. 8%, outpacing its reference market by 5% and the combined effect result in €24.4mn (+9.0% YoY). Furthermore, during the last 3

months, Shedir obtained 6 new patents, launched new gastrointestinal references and renewed an agreement for product distribution in Vietnam. The 1H19

EBITDA adjusted (for €1.3mn extraordinary costs related to both tax assessment

and IPO) reached €5.2mn, up by 10.9% YoY. Adjusted net income equaled €3.2mn.

SWOT Analysis


Diversified product portfolio;

Wide and specialized distribution network;

Consolidated relationships with doctors.

Competition is fierce in the sector;

Pharmacists may impact sales despite doctors’ prescriptions;

Product’s technical content not always visible.


International expansion;

Wide pipeline of products;

Listing may ease talents hiring and investments.

Consolidation at distribution-channel level;

Regulatory changes;

Agents management can pose difficulties.

5,000

6,000

7,000

8,000

9,000

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

Shedir Pharma Group S.P.A. FTSE Italia All-Share

Umberto Di Maio; 87,5%

Free Float; 12,5%

0,1

0,15

0,2

0,25

0,3

0

10

20

30

40

50

2014 2015 2016 2017 2018




SHEDIR PHARMA


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 43,5 52,0 58,6 68,3 ROE 61,0% 30,2% 29,0% 23,0%

EBITDA 11,1 11,7 14,1 16,8 Net Fin. Debt / Equity (x) 1,4 0,3 -0,1 -0,4

EBITDA margin 25,5% 22,5% 24,1% 24,6% Net Fin. Debt / EBITDA (x) 1,4 0,6 -0,1 -1,1

EBIT 9,1 9,6 11,9 14,7 Capex / Sales na 1,0% 0,9% 0,7%

EBIT margin 20,9% 18,4% 20,4% 21,5% Pay Out Ratio na 0,0% 0,0% nm


Taxes -2,5 -2,4 -3,3 -4,2

Net Income 6,4 6,2 8,4 10,2

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,56 0,44 0,70 0,89

Growth Rates DPS na 0,00 0,00 0,00

(EURm) 2018A 2019E 2020E 2021E BVPS 0,92 1,36 2,05 3,88


Growth EBITDA 58,6% 5,3% 20,8% 19,0%

Growth EBIT na 4,9% 25,1% 23,1%

Growth Net Profit na -3,3% 35,3% 21,8% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E na 16,1 10,3 8,0

EV/CE na 3,2 3,0 2,5

Balance Sheet P/BV na 5,26 3,48 1,84

(EURm) 2018A 2019E 2020E 2021E Dividend Yield (%) na 0,0% 0,0%


na 1,70 1,36 0,92

Shareholders’ Equity 10,5 20,5 28,8 44,4 EV/EBITDA na 7,6 5,6 3,7

Net Financial Debt / (Cash) 15,0 7,0 -2,0 -18,8 EV/EBIT na 9,3 6,7 4,3




SIRIO MARKET PRICE: EUR11.0

Consumer

Data





Reuters/Bloomberg: SIOO.MI SIO IM


Source: FactSet

Performance

1m 3m 12m

Absolute -0.9% 18.9% Na

Rel. to FTSE IT -5.6% -13.7% na


Source: FactSet



Hot Topics The diversification toward franchising is becoming more and more

important for the equity story. It would be useful to have an update on the new openings and on the plans for 2020;

An update on the current trading, above all in the context of the recent macro-slowdown and the slow development of Italian consumptions;

It would be useful also to assess the chances of larger M&A, including eventually groups of retail shops to accelerate the growth.

Company profile

Sirio was established in the sixties in Ravenna to serve the commercial hospital

catering sector. In the following thirty years the Company became market leader

in Italy. In 2006, Sirio proposed its innovative concept of catering to the national motorway sector, laying the foundations for new growth and lasting success. The year 2012 marked the company’s entry into the Fast Food sector as a franchisee

of the Burger King brand in Italy with two points of sale in Venice and Lido di Jesolo. The year 2014 brought the company, through its La Ghiotta brand, to enter the airport sector. Finally, in 2018, Sirio opened its doors to commercial

catering management in city centres. Nowadays, Sirio is a business with over 80

points of sale in the country, over 65 million in turnover at the end of 2018, over 700 employees. The company was listed on the AIM segment in mid-2019.


Recent developments

Several new openings were announced in the last few months: BK in Ancona in May and at the Genova airport in July; Cioccolati Italiani in Brescia just took place

in October, the Curno (BG) one took place in November.

The Cioccolati Italiani opening in Brescia is part of a broader agreement with the

brand that envisages 5 store openings in 3 years (2 already opened, including Brescia and Curno).

By the same token also the agreement with Alice Pizza envisages 6 store openings

in the coming 18 months (of which 1 already opened).

SWOT Analysis


Leadership in the Italian hospital commercial catering;

High winning and renewal rates;

Experienced management.

Expansion is capex-driven;

Lower scale compared to large players;

Lack of M&A track record.


Expand in motorways and airports segments;

M&A growth;

Development of the city business through franchise.

Food security regulation is strict and ever changing;

End-market show low growth, competition is fierce;

Aggregation may favor even more larger players.

5,000

7,000

9,000

11,000

Sirio S.p.A. FTSE Italia All-Share

Sirio Holding srl

68%

Futura Invest10%

Free Float22%

4%

9%

14%

0

20

40

60

80

2016 2017 2018




SIRIO


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 63,6 78,6 96,3 106,8 ROE 15,5% 21,7% 25,4% 23,3%



EBIT 3,9 9,2 11,0 12,0 Capex / Sales nm 9,3% 8,7% 6,6%

EBIT margin 6,2% 11,7% 11,4% 11,2% Pay Out Ratio nm 0,0% 0,0% 0,0%


Taxes -2,0 -1,8 -2,2 -2,6

Net Income 1,3 2,3 3,6 4,3

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,68 1,03 1,25


(EURm) 2018A 2019E 2020E 2021E BVPS 5,51 6,54 7,79


Growth EBITDA 16,6% 234,4% 10,0% 5,9%

Growth EBIT na 134,1% 19,6% 9,1%

Growth Net Profit na 78,8% 56,5% 19,4% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 16,2 10,7 8,8

EV/CE 1,0 1,0 0,9

Balance Sheet P/BV 2,00 1,68 1,41

(EURm) 2018A 2019E 2020E 2021E Dividend Yield (%) 0,0% 0,0%


1,35 1,10 0,96

Shareholders’ Equity 8,3 10,6 14,2 18,5 EV/EBITDA 4,6 4,2 3,8

Net Financial Debt / (Cash) 14,5 68,2 68,0 65,0 EV/EBIT 11,5 9,6 8,6




SIT GROUP MARKET PRICE: EUR7.0

Heating, smart gas metering

Data





Reuters/Bloomberg: SIT.MI SIT IM


Source: FactSet

Performance

1m 3m 12m

Absolute 2,2% -6,0% -18,8%

Rel. to FTSE IT -4,0% -22,9% -40,6%


Source: FactSet



Hot Topics China and Turkey, two key markets for the Heating division, experienced a

sharp drop in the first half of the year (-31% and -46% respectively) but showed better conditions in 3Q19. Understanding the evolution of these markets could be a key topic.

SIT is strongly investing to expand its product range with innovative solutions to increase the share of wallet in the Heating division and to

develop new meter devices. An update on these developments is crucial to understand revenues and profitability trend.

The Smart Gas Metering division should complete the substitution of Italian gas meters in the residential market at the end of 2020 and therefore future growth would be driven by the expansion in foreign markets on

which we would like to have a higher visibility.

Company profile

SIT is a leading producer of components designed for the safety, efficiency and

performance of gas equipment with revenues of EUR360 million in 2018 (+11%),

eight plants (of which four outside Italy), 10 commercial branches abroad, and >2,000 employees. Since 2009, it has also been present in the fast-growing niche segment of Smart Gas Metering. The group, founded and still managed by the De’

Stefani family, has reported average organic growth of about 6.6% since 2012. Because of its lean cost structure, healthy operating leverage and the quality of its products that is recognized by its customers, the company has maintained

EBITDA margins close to 13% in the past ten years (14.1% in 9M19). Almost 65%

of SIT revenues are generated outside the domestic market, particularly in Europe (41% of sales) and in the US (15%) but it also has a solid presence in China and Turkey. SIT was listed on the AIM market following the business

combination with the SPAC Industrial Star for Italy 2 in July-17 and moved to MTA market segment in 2019.


Recent developments

3Q19 results were slightly above our expectations and gave some positive signals for the future: 1) contrary to the first half of the year when Heating division

revenues dropped by 12.8%, 3Q19 saw limited sales erosion (-2.2%). This was possible thanks to the recovery of China (+13.4%), a better trend in Turkey (-3.1% vs. -46.1% in 1H19) and further growth in the US (+20.6%) pushed up by market

share and forex gains, 2) EBITDA margin improved, even on adjusted basis, due to a better product mix and further reduction of services costs, 3) Smart Gas

Metering continued to grow (+12.7% in the quarter) and should easily reach

EUR90 million revenues in the full year; 4) The bottom line benefitted from

EUR3.7 million of non-recurring fiscal benefit related to the release of costs accounted in 2017-18 for the fair value of the outstanding warrants. Net debt was also below our estimates but this is due to SIT’s decision to postpone to 2020-21 the investments for the new laboratories and headquarter. Following 3Q19

results the company slightly improved its guidance anticipating EBITDA growing at a mid-single digit rate and a further net debt reduction,

SWOT Analysis


Market leader in the Heating market (50% market share worldwide)

Limited exposure to Italy (35% of sales in 2018)

High and stable profitability despite the economic crisis

Declining Heating market (-2.5% in 9M19) after many years of growth

Large component of goodwill (42% of capital employed)

Lengthy time to market for new products due to testing and homologation


Fast growth of smart gas metering business

New products and higher share of wallet for Heating

Potential acquisitions

Regulatory risk

Currency fluctuations (in particular GBP and USD)

Potential custom duties in the US and Brexit

SIT Technologies; 73,4%

Treasury; 0,5%

Free Float; 26,1%

10,0%

11,0%

12,0%

13,0%

14,0%

15,0%

16,0%

0

100

200

300

400

2014 2015 2016 2017 2018




SIT GROUP


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 359,7 350,6 358,0 366,0 ROE 19,5% 12,6% 10,3% 11,4%



EBIT 24,0 22,9 23,5 25,8 Capex / Sales 9,4% 8,7% 7,3% 5,1%



Taxes -7,8 -0,8 -5,2 -6,1

Net Income 24,4 17,1 14,8 17,4

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 1,02 0,69 0,59 0,70

Growth Rates DPS 0,28 0,28 0,30 0,32

(EURm) 2018A 2019E 2020E 2021E BVPS 5,22 5,42 5,73 6,13


Growth EBITDA -0,6% 4,8% 6,0% 6,0%

Growth EBIT -4,8% -4,3% 2,5% 9,8%

Growth Net Profit nm -29,8% -13,7% 17,6% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 10,0 10,2 11,8 10,1

EV/CE 1,6 1,2 1,2 1,1




0,89 0,70 0,66 0,59






TAS GROUP MARKET PRICE: EUR1.87

Technology

Data





Reuters/Bloomberg: TAS.MI TAS IM


Source: FactSet

Performance

1m 3m 12m

Absolute 0.0% 1.6% 21.3%

Rel. to FTSE IT -6.2% -15.2% -0.5%


Source: FactSet



Hot Topics When does the company expect to come back to break-even also at the

bottom line?

What is the expected normal cash flow generation?

Is the company planning M&A deals or further partnerships, mainly for the payment division?

Can you give a size of the latest agreements reached with BNP Paribas

Group and Anglo-Gulf Trade Bank?

Company profile

It was established in 1982 and has been listed on the MTA segment since May

2000. TAS Group is a leading fintech company active in five business lines: 1)

Global Payments; 2) Capital Markets & Treasury; 3) Extended Enterprises (ERP modules and projects); 4) Hosting and Housing (datacenter, ICT services and cloud computing); 5) Third Party Products. The Group serves major commercial

and central banks and numerous financial services centers in Italy and Europe. The main drivers of TAS Group business are represented by the market initiatives and bank regulations reshaping the payments landscape: PSD2, Target

Instant Payment Settlement (TIPS), consolidation of TARGET2 and T2S and

MiFID2/BASEL4. The Company exited from CONSOB’s black list in Aug-17.


Recent developments

The Group closed 1H19 with revenues up 6.4% to EUR25.15 million and EBITDA rising 90% to EUR3.68, equal to 14.6% EBITDA margin. The improvement of

profitability was due to a better mix (increase in the sale of licenses of software and maintenance fees). EBIT became positive to EUR0.57 million while net profit remained slightly negative (EUR0.16 million). Net debt was EUR7.7 million but

EUR9.4 million was due to IFRS16 impact. Cash flow generation in 1H19 was equal to EUR6.7 million. The management said to expect 2H19 trend to be positive as in

1H19. In July, the BoD approved the following reorganization: spin-off of the

payment business to a newco called “Global Payments”; transfer of the control of all foreign companies to TAS Helvetia.

SWOT Analysis


Market positioning (largest payment carrier in Europe)

Diversified clients across industries and countries

Positive trend in digital banking transformation

Goodwill represents 78% of equity value at June-19

Still negative bottom line


Increasing banking regulation

12.7% expected 2016-2021 CAGR of global non-cash transactions

(source: Capgemini World Payments Report 2018)

Increasing competition

Technological breakthrough in monetics

0,855

1,355

1,855

2,355

TAS FTSE Italia All-Share

OWL S.p.A.81%

Free Float19%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

0

10

20

30

40

50

60

70

2014 2015 2016 2017 2018




TAS GROUP


(EURm, %) 2015 2016 2017 2018 (%) 2015 2016 2017 2018

Net Revenues 47,6 47,9 61,4 50.5 ROE nm -13,1% -6,3% 0.8%

EBITDA 2,3 3,5 4,6 6.3 Net Fin. Debt / Equity (x) 36,4 0,2 -0,1 0.1

EBITDA margin 4,8% 7,3% 7,5% 12.5% Net Fin. Debt / EBITDA (x) 7,9 1,2 -0,5 0.5

EBIT -7,2 -2,5 -0,9 0.8 Capex / Sales 9,5% 11,7% 12,4% 9.9%

EBIT margin -15,1% -5,2% -1,5% 1.6% Pay Out Ratio 0,0% 0,0% 0,0% 0.0%

Profit before taxes -8,6 -3,5 -1,5 45.9

Taxes -0,1 0,0 0,0 -45.7

Net Income -8,7 -3,3 -1,5 0.2

Per Share Data

(EUR) 2015 2016 2017 2018

EPS -0,10 -0,04 -0,02 0.00

Growth Rates DPS 0,00 0,00 0,00 0.00

(EURm) 2015 2016 2017 2018 BVPS 0,01 0,30 0,28 0.30

Growth Group Net Sales 9,7% 0,6% 28,2% -17.7%

Growth EBITDA -19,6% 52,8% 31,4% 37.6%

Growth EBIT 148,3% -65,7% -62,3% NM

Growth Net Profit 40,3% -61,6% -55,4% NM Stock Market Ratios

(x) 2015 2016 2017 2018

P/E -14,8 -38,5 -86,3 781.1

EV/CE nm nm 75,9 5.7

Balance Sheet P/BV nm 5,06 5,40 3.62

(EURm) 2015 2016 2017 2018 Dividend Yield (%) 0,0% 0,0% 0,0% 0.0%

Capital Employed 18,7 29,5 21,5 27.8 EV/Sales

3,09 2,78 2,06 3.2

Shareholders’ Equity 0,5 25,4 23,8 24.7 EV/EBITDA nm 38,02 27,54 25.2

Net Financial Debt / (Cash) 18,2 4,1 -2,3 3.1 EV/EBIT nm nm nm 198.9




TINEXTA MARKET PRICE: EUR11.90

IT services

Data





Reuters/Bloomberg: TNXT.MI TNXT.IM


Source: FactSet

Performance

1m 3m 12m

Absolute -5.6% 0.0% 91.9%

Rel. to FTSE IT -11.7% -16.9% 70.2%


Source: FactSet





How’s going the restructuring of Co.Mark?

Re-organization process: what are the expected savings?

Which are the expected growth rate and margin for 2020?

Dividend policy: is 30% pay-out confirmed?

Company profile

Tinexta Group has the following three business divisions: Digital Trust (solutions

to improve digital security, 40% of revenues, 36% of EBITDA); Credit

Information&Management (IT services for credit management, 33% of revenues, 24% of EBITDA) and Innovation&Marketing Services (consulting, 28% of revenues, 40% of EBITDA) The Group is engaged in boosting organic growth by

exploiting revenues synergies and in continuing acquisitions strategy and internationalization (started in 2018 with Camerfirma in Spain).


Recent developments

9M19 closed with revenues up 6.7% YoY to EUR181.2 million and EBITDA at EUR46.2 million (+4.6% YoY); net of cost of the stock option plan EBITDA grew

by 11.6% to EUR49.7 million. Adjusted net profit rose by 4.5% YoY to EUR26 million. IFRS impact on net debt was EUR14.4 million. 2019 target are revenues at EUR250 million and EBITDA pre-IFRS16 at EUR68-70 million.

SWOT Analysis


Leadership in Digital Trust in Europe

Good track record in M&A

Outstanding profitability

High exposure to Italy

Weak market condition in Credit Information&Management

Turnaround of Co.Mark (export consultancy) still ongoing


Expansion into digital marketing, transformation and cyber security

Cost synergies opportunities in reorganization

International expansion

Increasing competition in Credit Information&Management division

Risk of economic slowdown

Potential regulatory change

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7,000

9,000

11,000

13,000

Tinexta FTSE Italia All-Share

Tecno Holding; 55,8%

Quaestio

Capital Mana…

Free Float; 34,5%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

0

50

100

150

200

250

300

2014 2015 2016 2017 2018




TINEXTA


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 239.2 258.5 273.9 291.8 ROE 22.3% 21.7% 21.6% 21.4%



EBIT 48.3 53.2 59.2 63.3 Capex / Sales 5.5% 4.9% 4.4% 4.2%



Taxes -13.0 -14.8 -16.2 -17.7

Net Income 32.8 34.7 40.3 42.7

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0.73 0.79 0.88 0.96

Growth Rates DPS 0.23 0.25 0.27 0.29

(EURm) 2018A 2019E 2020E 2021E BVPS 3.10 3.65 4.09 4.47


Growth EBITDA 60.9% 10.8% 9.5% 5.1%

Growth EBIT 78.2% 10.2% 11.2% 6.9%


(x) 2018A 2019E 2020E 2021E

P/E 16.2 15.0 13.5 12.4

P/OpCFPS 4.7 3.4 2.5 1.3




1.75 2.66 2.40 2.11






TRIBOO MARKET PRICE: EUR1.39

Digital Services

Data





Reuters/Bloomberg: TB.MI TB.MI


Source: FactSet

Performance

1m 3m 12m

Absolute -2.8% -2.5% -8.3%

Rel. to FTSE IT -9.0% -19.3% -30.0%


Source: FactSet



Hot Topics What is the trend in advertising collection and expectations for total

advertising market and online advertising in 2020?

How is the international expansion going on?

Which is the target of net stores acquisitions in 2020?

Is there room to cut costs in 2020?

Are there visible M&A opportunities?

Company profile

Triboo provides eCommerce services and digital advertising/editorial solutions to

Italian corporates. The Group is divided into two main units: Triboo Digitale

(60% of sales) dedicated to eCommerce and Triboo Media (40% of revenues) devoted to online publishing/advertising collection. In 2019 Triboo. Triboo Digitale manages around 110 third-party producers’ online stores. It acts as a

business support agent and has an exclusivity mandate. Triboo Media covers the whole advertising campaign lifecycle and leverages on 50 owned editorial platforms (vertical communities, online magazines, digital radio). Half of revenues

are generated in Italy; rest of Europe represents ca. 40% and North America 7%.

Triboo moved to MTA on 29 June 2018.


Recent developments

In 1H19 revenues grew by 10.7% to EUR37.6 million vs EUR33.9 million in 1H18; digital division was up 10.9% to EUR22.8 million while media rose by 11.3% to

EUR16.5 million. The Group increased the number of stores managed by 3 to 111 and grew in direct marketing. Adjusted EBITDA improved to EUR3.8 million compared to EUR3.4 million recorded in 1H18, while reported EBITDA was

lower (EUR3.5 million vs EUR4.9 million in 1H18) because last year was inflated by EUR2.5 million no recurring revenues related to capital gains from the disposal of

the stake in Friendz. Adjusted net profit was EUR0.7 million (vs breakeven in

1H18). Net debt jumped to EUR8.3 million from EUR6.1 million at end-2018. 1H19 trend was below FT19 target of EUR84.5 million revenues, EUR12.5 million EBITDA and EUR3.7 million net profit. A new managing director was recently

appointed and a new business plan will be presented on 22 January 2020.

SWOT Analysis


Gaining momentum of e-commerce

Hide and competitive editorial content

One-stop media solution

Smaller than international competitors in e-commerce

Increasing logistic costs

High exposure to domestic advertising market


Consolidation of position as unique digital factory for clients

Increasing presence in key international markets focusing on Far East and

Europe

Growth in key areas through strategic partnership and M&A

Tendency to internalize online store and trend of media centers to directly buy advertising spots.

High turnover of top management in recent years

Increasing regulatory requirements for privacy

1,000

1,500

2,000

2,500

Triboo FTSE Italia All-Share

Compagnia Digitale Italiana S.p.A.; …

Treasury; 1,2%

Free float; 31,9%

First Capital; 7,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

0

10

20

30

40

50

60

70

80

2014 2015 2016 2017 2018




TRIBOO


(EURm, %) 2018A 2019E 2020E (%) 2018A 2019E 2020E

Net Revenues 68.0 82.1 91.5 ROE 5.0% 3.7% 6.3%

EBITDA 9.9 10.2 12.4 Net Fin. Debt / Equity (x) 0.2 0.2 0.1

EBITDA margin 14.6% 12.4% 13.6% Net Fin. Debt / EBITDA (x) 0.6 0.6 0.3

EBIT 3.2 2.6 3.9 Capex / Sales 16.2% 7.9% 5.5%

EBIT margin 4.7% 3.2% 4.3% Pay Out Ratio 155.6% 75.0% 62.5%

Profit before taxes 2.8 2.5 3.8

Taxes -1.1 -1.2 -1.6

Net Income 1.7 1.3 2.3

Per Share Data

(EUR) 2018A 2019E 2020E

EPS 0.05 0.04 0.08

Growth Rates DPS 0.07 0.03 0.05

(EURm) 2018A 2019E 2020E BVPS 1.20 1.20 1.30

Growth Group Net Sales 4.0% 20.8% 11.5%

Growth EBITDA 28.6% 3.1% 21.6%

Growth EBIT 70.1% -18.8% 50.2%

Growth Net Profit n.a. -25.8% 77.3% Stock Market Ratios

(x) 2018A 2019E 2020E

P/E 30.8 34.6 17.3

EV/EBITDA 1.1 1.2 1.1

Balance Sheet P/BV 1.15 1.15 1.07

(EURm) 2018A 2019E 2020E Dividend Yield (%) 3.0% 5.1% 2.2%

Capital Employed 40.6 40.5 39.9 EV/Sales

0.75 0.57 0.48

Shareholders’ Equity 34.5 34.2 36.0 EV/EBITDA 5.2 4.6 3.6

Net Financial Debt / (Cash) 6.1 6.3 3.9 EV/EBIT 15.9 17.9 11.3




TXT GROUP MARKET PRICE: EUR9.8

IT services

Data





Reuters/Bloomberg: TXTS.MI TXT.IM


Source: FactSet

Performance

1m 3m 12m

Absolute 20.0% 19.7% 19.5%

Rel. to FTSE IT 13.8% 2.8% -2.3%


Source: FactSet





Dividend policy: any change in the historical policy?


Is there any room for cost savings?

Company profile

TXT is an international, specialized provider of engineering software solutions

(software products and engineering services) supporting customers in high-tech

markets. Domestic market represents 55% of revenues; other major markets are France (11%), North America (10%), UK (8%) and Germany (7%). In terms of sectors, revenues and EBITDA breakdown is the following: ca. 70%

aerospace&aviation and 30% Fintech. In March 2018 Mr Enrico Magni joined TXT as major shareholder (25.6%-stake) and was appointed new CEO with the mission to drive the international growth of the Group. In July 2018 TXT

announced the acquisition of Cheleo (design and development of products and

services for the life cycle management of financing) for EUR10 million (cash+shares).


Recent developments

In April 2019, TXT announced the acquisition of Assioma for a price tag of EUR6.9 million (cash+shares). The Group is specialist in the governance of application

software quality. In May, Mr Guida resigned as Director of aereospace division and was replaced by Mr Daniele Misani. In July Mr Forcinito was appointed new CFO. In 9M19 revenues jumped by 48.6% to EUR28.6 million (+30.6% on a like-for-like

base), of which EUR6 million generated by software (+80.3% YoY). The aereospace division was up 24.8% to EUR28.3 million. EBITDA was EUR4.8 million

(+69.6% YoY) equal to margin of 11.3%. EBIT was EUR2.2 million, net profit

closed at EUR3 million. Net debt was EUR43.2 million after EUR5.8 million dividend distribution, EUR1 million cash out for buy-back and EUR5.6 million cash out for the acquisition of Assioma.

SWOT Analysis


Solid balance sheet

Leading provider in all the phase of aircraft lifecycle

First mover and Italian leader in software quality service

Management transition risk

High goodwill: EUR20.2 million (24% of shareholders’equity)

Low margin in Fintech


M&A growth (EUR44 million net cash available as at end-June)

New orders, especially in aerospace&aviation

Management reshuffle

M&A execution risk

Economic slowdown

Change in regulation

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8,000

9,000

10,000

11,000

TXT e-solutions FTSE Italia All-Share

LaserLine S.p.A.

27%

Braga Illa

Alvise14%

Treasury9%

Free Float50%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

0

10

20

30

40

50

60

70

80

2014 2015 2016 2017 2018




TXT GROUP


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 40.0 56.0 63.0 68.0 ROE 0.7% 3.6% 4.7% 5.7%

EBITDA 3.9 5.3 6.8 8.4 Net Fin. Debt / Equity (x) -0.7 -0.6 -0.6 -0.6

EBITDA margin 9.8% 9.5% 10.8% 12.4% Net Fin. Debt / EBITDA (x) -15.5 -9.2 -7.2 -5.9

EBIT 1.8 3.5 5.2 6.1 Capex / Sales 1.3% 1.8% 1.6% 1.5%



Taxes -0.5 -1.0 -1.0 -1.0

Net Income 0.6 3.0 4.0 5.0

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0.08 0.25 0.34 0.39

Growth Rates DPS 0.50 0.20 0.27 0.32

(EURm) 2018A 2019E 2020E 2021E BVPS 7.33 7.17 7.31 7.43


Growth EBITDA 19.3% 36.4% 27.9% 23.9%

Growth EBIT -35.7% 93.6% 48.2% 15.7%

Growth Net Profit -66.8% 415.0% 33.3% 25.0% Stock Market Ratios

(x) 2018A 2019E 2020E 2021E

P/E 129.8 38.6 28.7 24.9

P/OpCFPS 2.6 2.3 2.2 2.1




1.7 1.4 1.2 1.1


Net Financial Debt / (Cash) -60.4 -49.0 -49.0 -50.0 EV/EBIT 36.8 22.2 15.0 12.8




UNIEURO MARKET PRICE: EUR13.2

Consumer goods

Data





Reuters/Bloomberg: UNIR.MI UNIR IM


Source: FactSet

Performance

1m 3m 12m

Absolute 9.7% 14.4% 25.1%

Rel. to FTSE IT 3.5% -2.4% 3.3%


Source: FactSet



Hot Topics An update on the current trading, with a focus on the B2B, on-line and

Indirect channels will be helpful to assess the health of a sector clearly showing some tensions;

An update on the integration of the most recent acquisition (Pistone) and an update on the conditions on the competitive arena for further M&A;

It will be interesting to understand how the company and the channels entered, in terms of inventory, the most important quarter of the year (black Friday and Christmas).

Company profile

Founded in the late ‘30s, Unieuro is currently the largest omnichannel

distributor of consumer electronics and household appliances by number of

outlets in Italy with a network of over 500 stores throughout Italy, including direct stores (approx 230) and affiliates (approx 270), in addition to its digital platform.

Unieuro operates as an integrated omnichannel distributor in four main

segments: Grey (Telecom, IT and photography), White (large and small electrical appliances), Brown (TV and media storage) and Other Products (consoles, video games, DVDs and BlueRay).

Based in Forlì and with a logistics centre located in Piacenza, Unieuro has a workforce of approx 4,600 employees and revenues that, for the year ended 28

February 2017, reached €1.87 billion.


Recent developments

On 22 October the company disclosed its 1H19 results that showed revenues up by 16.6% (also reflecting the consolidation of the former Pistone, DPS and

Galimberti stores) while organic growth stood at +4%. Adjusted EBITDA grew more than proportionally (+15.6%) reaching the 1.6% mark. Adjusted Net Income grew significantly and reached the EUR1.5 million level. Cash absorption was

EUR22.7 million and in line with the usual seasonality this business shows. The Retail and Online channels posted a nice growth (+18% and +15% respectively)

while B2B channel declined by 13.7% YoY. The Travel and the Indirect posted the

strongest growth rate (+45.8% and 25.1% respectively), in percentage terms, although being smaller channels in absolute terms.

At the end of November the company enrolled a primary Italian broker to

improve the stock liquidity.

SWOT Analysis


Experienced management with track record in M&A/store integration;

High customer proximity;

Brand recognition.

Supplier concentration;

Price competition;

Low-margin business.


Market and Omni-channel consolidation;

Big data;

Warranty business.

Retail channel disintermediation (from suppliers)

Fully exposed to Italy;

Size, relative to larger foreign players.

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Unieuro SpA FTSE Italia All-Share

Rhone Capital

34%

Dixons Carphone; 7%

Amundi; 5%

Free Float54%

10,0%

12,0%

14,0%

16,0%

18,0%

20,0%

0

500

1.000

1.500

2.000

2.500

2016 2017 2018




UNIEURO


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 2.104,5 2.359,8 2.424,6 2.516,2 ROE 32,0% 30,8% 29,3% 27,6%

EBITDA 57,2 66,7 70,0 79,0 Net Fin. Debt / Equity (x) -0,2 -0,3 -0,3 -0,3


EBIT 29,7 37,4 45,5 46,7 Capex / Sales 1,9% 1,5% 1,5% 1,5%



Taxes 1,9 -3,2 -7,0 -6,2

Net Income 28,9 30,8 35,7 37,8

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 1,80 1,90 2,08 1,84

Growth Rates DPS 1,00 1,05 1,09 1,10

(EURm) 2018A 2019E 2020E 2021E BVPS 4,55 4,95 5,60 6,46


Growth EBITDA 33,0% 16,6% 5,0% 12,9%

Growth EBIT 26,1% 21,5% 2,6%


(x) 2018A 2019E 2020E 2021E

P/E 7,3 6,9 6,3 7,2

EV/CE 3,45 3,40 2,63 2,34




0,08 0,10 0,09 0,09






WIIT MARKET PRICE: EUR78.2

IT service

Data





Reuters/Bloomberg: WIIT.MI WIIT IM


Source: FactSet

Performance

1m 3m 12m

Absolute 30.8% 33.9% 118.4%

Rel. to FTSE IT 24.6% 17.0% 96.7%


Source: FactSet





Which is the contribution to growth by upselling activity and new

customers?

Timetable to reach the expected EUR0.5 million synergies from the

integration of Matika?


Company profile

WIIT is leading domestic player in cloud computing. It is specialized in the

management of hybrid clouds and private hosted clouds. It works mainly for

fashion (34% of revenues), oli&gas (13%), industrial machinery (11%) and process manufacturing (11% of sales). It was established in 1996 and is focused on cloud since 2007. It accounts 70 top clients and over 200 midsize clients. 75% of

revenues are recurring. Wiit deploys two dedicated Enterprise Class Data-Center in Italy; the level of their use is only 35% of total capacity. Since 2007 made 4 successful acquisitions. It was listed on AIM in 2017 and moved into

STAR in 2019.


Recent developments

In June 2019, it announced the acquisition of Matika, Italian leader in information security, cloud management, system integration and CRM. Wiit recorded EUR14.8

million revenues (+38.3% YoY, +10% organic growth). Adjusted EBITDA (net of EUR1 million cost due to STAR listing and M&A transaction cost) was EUR5.9 million (39.8% margin). Adjusted net profit was EUR4 million (vs EUR1.5 million in

1H18). Net debt was EUR9 million, including EUR5.8 million due to IFRS16 effect.

SWOT Analysis


Good momentum of cloud market

Experienced management team

Good visibility (5 years average contract period)

Limited size

Dependence to key talents

High goodwill (EUR9.7 million, 43% shareholders equity)


M&A growth in Europe

Portfolio extension on Top Tech trend

Italian market consolidation

High competition by tech giants

Shortage of talented people

M&A execution risk

30,000

40,000

50,000

60,000

70,000

WIIT FTSE Italia All-Share

LaserLine S.p.A.27%

Braga Illa

Alvise14%

Treasury9%

Free Float50%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

0

5

10

15

20

25

30

2015 2016 2017 2018




WIIT


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 25.2 32.9 41.8 45.8 ROE 19.2% 24.0% 25.5% 27.7%



EBIT 4.9 6.8 9.1 11.6 Capex / Sales 25.4% 17.2% 15.5% 15.3%



Taxes -0.8 -0.6 -1.5 -1.9

Net Income 3.5 5.8 7.2 9.1

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 1.39 2.34 2.70 3.44

Growth Rates DPS 0.90 1.34 1.65 2.11

(EURm) 2018A 2019E 2020E 2021E BVPS 8.40 9.70 11.30 13.20


Growth EBITDA 31.7% 32.9% 17.7% 19.4%

Growth EBIT 16.8% 38.7% 33.9% 27.3%


(x) 2018A 2019E 2020E 2021E

P/E 56.3 33.4 29.0 22.7

P/OpCFPS 7.9 5.9 5.7 5.4




3.84 6.69 5.20 4.67






ZIGNAGO VETRO MARKET PRICE: EUR12.10

Glass production

Data


Market Cap. (EURm): 1,064.8

Enterprise Value (EURm): 1,305.6

Av. Daily Trad. Vol. (m):

Reuters/Bloomberg: ZV.MI ZV IM


Source: FactSet

Performance

1m 3m 12m

Absolute 22,3% 18,9% 36,0%

Rel. to FTSE IT 16,2% 2,0% 14,2%


Source: FactSet



Hot Topics The company already reached an outstanding EBITDA margin (27.8% in

9M19. What could be the driver for a further improvement in future?

Zigango Vetro has completed an extraordinary capex plan to increase its

production capacity and upgrade existing plants. What are the plans for future capex? When do you expect to come back to a maintenance level?

The industry is concentrating. Do you see any room for acquisitions and which could be your ideal target?

A sensitivity to raw materials and energy price should be useful to assess

2020-22 scenario.

Company profile

Zignago Vetro operates in the production and marketing of high quality hollow

glass containers prevalently for the Food and Beverage (44% of 2018 sales),

Cosmetics and Perfumery (30%) and “Specialty Glass” sectors (highly customised glass containers in small batches, typically used for wine, liquors and oils) with 22% of 2018 revenues. Its products are sold to leading brands such as Campari,

Chanel, Hermes, Antinori, Diageo, L’Oréal and many others. The company grew strongly (sales 7.7% CAGR in the past 30 years and EBITDA 8.0% CAGR) thanks to an outstanding organic growth and some acquisitions and currently has 7

plants including one plant in France and one in Poland. The lean cost structure,

the continuous product innovation and a high customer loyalty (>90%) resulted in a constant increase of the EBITDA margin which reached 27.7% in 2018. The company has always distributed dividends with a pay-out ratio around 70% and

has started a sustainability program improving the use of glass scraps from recycling, obtaining in this way a higher score compared with the sector average.


Recent developments

In the first nine months of 2019 revenues amounted to EUR 315.4 million, +13.4% on the same period of 2018 and +20% in the third quarter, of which 36% outside

Italy with EBITDA margin topping 27.8% and an operating free cash flow of nearly EUR58 million. Overall, markets on which the Group companies operate have generally experienced good demand levels. Specifically, glass Beverage and Food

container demand has been particularly buoyant and has seen growth on all segments, both in Italy and more widely across Europe. End-consumption growth,

particularly for more export-focused finished product sectors, appears to be the

main factor behind this movement, while the appreciation among consumers for glass packaging seems to have increased. The global Perfumery markets also generally performed well, thanks mainly to emerging country demand, with the

only exception of nail varnish containers which remains weak. Zignago Vetro did not supplied a specific guidance for 2020 but anticipated a positive trend also in the last quarter of the year.

SWOT Analysis


High content of product innovation and customization

Strong customer loyalty

Premium price position

Glass production is capital and energy intensive

Exposure to mature markets

Concentration in the domestic market still high and limited size


Additional production capacity coming from the extraordinary capex plan

The introduction of a plastic tax in Italy could push up glass packaging

Potential acquisitions

Raw material and energy price fluctuations

Substitution risk

Technology breakthrough in the packaging market

8,000

9,000

10,000

11,000

12,000

13,000

Zignago FTSE Italia All-Share

Marzotto family; 65,0%

Free Float; 35,0%

8,0%

8,5%

9,0%

9,5%

10,0%

0

100

200

300

400

500

2014 2015 2016 2017 2018




ZIGNAGO VETRO


(EURm, %) 2018A 2019E 2020E 2021E (%) 2018A 2019E 2020E 2021E

Net Revenues 376,5 407,2 437,6 471,0 ROE 22,5% 21,9% 22,7% 25,3%



EBIT 64,5 60,7 66,2 88,0 Capex / Sales 25,0% 17,2% 6,9% 7,4%



Taxes -13,4 -11,0 -10,9 -22,0

Net Income 45,0 46,7 52,3 63,0

Per Share Data

(EUR) 2018A 2019E 2020E 2021E

EPS 0,52 0,53 0,59 0,73

Growth Rates DPS 0,36 0,37 0,42 0,51

(EURm) 2018A 2019E 2020E 2021E BVPS 2,27 2,40 2,60 2,90


Growth EBITDA 13,4% 8,7% 7,3% 9,4%

Growth EBIT 21,7% -5,9% 9,1% 32,9%


(x) 2018A 2019E 2020E 2021E

P/E 23,2 20,9 18,8 16,6

P/OpCFPS 3,13 2,84 2,92 3,19




2,56 3,07 2,80 2,59






Disclaimer

Analysts Declaration

This research report (the “Report”) has been prepared by Marco Cristofori, Massimo Vecchio, Oriana Cardani and Dario Fasani on behalf of UBI Banca S.p.A. (“UBI Banca”) in the context of the ancillary service provided by UBI Banca named “Investment research and financial analysis or other forms of recommendation relating to transactions in financial instruments” under Paragraph 5), Section B, Annex I of the Directive 2014/65/EU (“MiFID II”). UBI Banca is an Italian bank under art. 4 (1)(27) of MiFID II and it is supervised by the European Central Bank and duly authorised to provide investment services pursuant to Article 1, Paragraph 5, letter a), b), c), c-bis), e) and f) of the Legislative Decree 24 February 1998, n° 58 under the supervision of the Italian Authority for the financial markets (Consob). UBI Banca has its head office at Piazza Vittorio Veneto 8, 24122 Bergamo.

The analysts who prepared the Report certify that:

a. The views expressed on the companies, mentioned herein (the “Companies”) accurately reflect their personal views, but do not represent the views or opinions of UBI Banca, its management or any other company which is part of or affiliated with UBI Banca group (the “UBI Banca Group”). It may be possible that some UBI Banca Group officers may disagree with the views expressed in this Report;

b. They have not received, and will not receive any direct or indirect compensation in exchange for any views expressed in this Report;

c. The analysts do not own any securities and/or any other financial instruments issued by the Companies or any financial instrument which the price depends on, or is linked to any securities and/or any financial instruments issued by the Companies.

d. Neither the analysts nor any member of the analysts’ household serve as officers, directors or advisory board members of the Companies.

e. The remuneration of the analysts is not directly tied to transactions for services for investment firms or other types of transactions it or any legal person, part of the same group performs, or to trading fees it or any legal person that is part of the same group receives.

f. Marco Cristofori is a member of AIAF; Massimo Vecchio is member of AIAF’s Directive Counsel; Oriana Cardani is a member of

AIAF, CFA charterholder.

General disclosure

This Report is for information purposes only. This Report (i) is not, nor may it be construed, to constitute, an offer for sale or subscription or of a solicitation of any offer to buy or subscribe for any securities issued or to be issued by the Companies, (ii) should not be regarded as a substitute for the exercise of the recipient’s own judgement. In addition, the information included in this Report may not be suitable for all recipients. Therefore the recipient should conduct their own investigations and analysis of the Companies and securities referred to in this document, and make their own investment decisions without undue reliance on its contents. Neither UBI Banca, nor any other company belonging to the UBI Banca Group, nor any of its directors, managers, officers or employees, accepts any direct or indirect liability whatsoever (in negligence or otherwise), and accordingly no direct or indirect liability whatsoever shall be assumed by, or shall be placed on, UBI Banca, or any other company belonging to the UBI Banca Group, or any of its directors, managers, officers or employees, for any loss, damage, cost, expense, lower earnings howsoever arising from any use of this Report or its contents or otherwise arising in connection with this Report.

The information provided and the opinions expressed in this Report are based upon information and data provided to the public by the Companies or news otherwise public, and refers to the date of publication of the Report. The sources (press publications, financial statements, current and periodic releases, as well as meetings and telephone conversations with the Companies’ representatives) are believed to be reliable and in good faith, but no representation or warranty, express or implied, is made by UBI Banca as to their accuracy, completeness or correctness. Past performance is not a guarantee of future results. Any opinions, forecasts or estimates contained herein constitute a judgement as of the date of this Report, and there can be no assurance that the future results of the Companies and/or any future events involving directly or indirectly the Companies will be consistent with any such opinions, forecasts or estimates. Any information herein is subject to change, update or amendment without notice by UBI Banca subsequent to the date of this Report, with no undertaking by UBI Banca to notify the recipient of this Report of such change, update or amendment.

Organizational and administrative arrangements to prevent conflicts of interests

UBI Banca maintains procedures and organizational mechanism (physical and non-physical barriers designed to restrict the flow of information between the unit which performs investment research activity, and other units of UBI Banca) to prevent and professionally manage conflicts of interest in relation to investment research in accordance with art. 23 of Directive 2014/65/EU and under art. 34 (3) and art. 37 of the Regulation 2017/565/EU.

More specifically, UBI Banca has established, implements and maintains an effective conflicts of interests policy aimed at preventing and managing the potential conflicts of interest that could occur during the performance of the investment research services.

Insofar as the above mentioned organizational and administrative arrangements established by UBI Banca to prevent or manage potential conflicts of interests are not sufficient to ensure, with reasonable confidence, that risks of damage to the interests of the client will be prevented, UBI Banca engages to provide a clear disclosure of the specific conflicts of interests arising from the performance of investment research services, including a description of the sources of those conflicts and the steps undertaken to mitigate them, taking into account the nature of the client to whom the disclosure is being made.

For further information please see UBI Banca’s website (www.ubibanca.com/equity-research - “Informativa sintetica sull’attività di ricerca”) and (www.ubibanca.com/Mifid - “Policy sintetica conflitti di interessi”). More details about the conflicts of interests’ policy will be provided by UBI Banca upon request.

Disclosure of interests and conflicts of interests pursuant to Delegated Regulation 2016/958/EU

In relation to the Companies the following interest/conflict of interest have been found:

UBI Banca act as Specialist for Equita and LU-VE;

UBI Banca acts as Corporate broker for Grifal and MailUp;

UBI Banca acts as Sponsor (or equivalent) for GPI and SIT;

UBI Banca has delivered corporate finance sevices to SIT in the last 12 months

UBI Banca may have long or short positions with the issuers.

On the basis of the checks carried out no other interest/conflict of interest arose.

http://www.ubibanca.com/equity-research



Frequency of updates

UBI Banca aims to provide continuous coverage of the companies in conjunction with the timing of periodical accounting reports and any exceptional event that occurs affecting the issuers’ sphere of operations and in any case at least twice per year. The companies for which UBI Banca acts as Sponsor or Specialist are covered in compliance with regulations of the market authorities.

For further information please refer to www.ubibanca.com/equity-research.

Valuation methodology

UBI Banca’s analysts value the Companies subject to their recommendations using several methods among which the most prevalent are: the Discounted Cash Flow method (DCF), the Economic Value Added method (EVA), the Multiple comparison method, the SOP method and the NAV method.

The analysts use the above valuation methods alternatively and/or jointly at their discretion. The assigned target price may differ from their fair value, as it also takes into account overall market/sector conditions, corporate/market events, and corporate specifics (i.e. holding discounts) reasonably considered to be possible drivers of the companies’ share price performance. These factors may also be assessed using the methodologies indicated above.

For further information please refer to www.ubibanca.com/equity-research.

Ranking system

UBI Banca’s analysts use an “absolute” rating system, not related to market performance. The explanation of the rating system is listed below:

Buy: if the target price is 15% higher than the market price, over the next 12 months.

Hold: if the target price is 15% below or 15% above the market price, over the next 12 months.

Sell: if the target price is 15% lower than the market price, over the next 12 months.

No Rating: the investment rating and target price have been suspended as there is not sufficient fundamental basis for determining an investment rating or target. The previous investment rating and target price, if any, are no longer in effect. Alternatively, No Rating is assigned in certain circumstances when UBI Banca is acting in any advisory capacity in a strategic transaction involving the Companies.

Target price: the market price that the analysts believe that the share may reach within a one-year time horizon.

Market price: closing price on the day before the issue date of the report, appearing on the first page.

Distribution

Italy: This document is intended for distribution in electronic form to “Professional Clients” and “Qualified Counterparties” as defined by Legislative Decree 24 February 1998, n. 58 and by Consob Regulation n. 16190 dated 29.10.2007, as further amended and supplemented.

IN THE UNITED KINGDOM, THIS DOCUMENT IS BEING DISTRIBUTED ONLY TO, AND IS DIRECTED ONLY AT PERSONS WHO (A) ARE (I) PERSONS FALLING WITHIN ARTICLE 19 OR ARTICLE 49 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (AND ONLY WHERE THE CONDITIONS CONTAINED IN THOSE ARTICLES HAVE BEEN, OR WILL AT THE RELEVANT TIME BE, SATISFIED) OR (II) ANY OTHER PERSONS TO WHOM IT MAY BE LAWFULLY COMMUNICATED; AND (B) ARE QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 2(1)(E) OF THE PROSPECTUS DIRECTIVE (DIRECTIVE 2003/71/EC), (ALL SUCH PERSONS BEING REFERRED TO AS "RELEVANT PERSONS"). THIS DOCUMENT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS.

THIS REPORT DOES NOT CONSTITUTE A PROSPECTUS WITHIN THE MEANING OF ARTICLE 652A OR ART. 1156 OF THE SWISS CODE OF OBLIGATIONS OR A LISTING PROSPECTUS WITHIN THE MEANING OF THE LISTING RULES OF THE SIX SWISS EXCHANGE OR ANY OTHER TRADING VENUE IN SWITZERLAND, OR A SIMILAR COMMUNICATION WITHIN THE MEANING OF ART. 752 THE SWISS CODE OF OBLIGATIONS, AND HAS BEEN PREPARED WITHOUT REGARD TO SWISS LAWS AND REGULATIONS, AND DOES NOT CONSTITUTE AN OFFER TO SUBSCRIBE FOR, BUY OR OTHERWISE ACQUIRE ANY SECURITIES OF THE COMPANY.

Copyright

This Report is being supplied solely for the recipients’ information and may not be reproduced, redistributed or passed on, directly or indirectly to any other person or published, in whole or in part, for any purpose without prior written consent of UBI Banca.

The copyright and intellectual property rights on the data are owned by UBI Banca Group, unless otherwise indicated. The data, information, opinions and valuations contained in this Report may not be subject to further distribution or reproduction, in any form or via any means, even in part, unless expressly consented by UBI Banca.

By accepting this Report the recipient agrees to be bound by all of the forgoing provisions.

Distribution of ratings

Equity rating dispersion in the past 12 months

Buy Hold Sell No Rating

91.2% 7.0% 1.8% 0.0%

Proportion on issuers to which UBI Banca has supplied investment banking services relating to the last 12 months

Buy Hold Sell No Rating

82.5% 100% 100% -

For further information regarding yearly and quarterly rating statistics and descriptions, please refer to www.ubibanca.com/equity-research.





RESEARCH DEPARTMENT Nomad - Key Executives Head of Research Department Marco Germano +39.02.7781 4651 Giovanni Barone [email protected] [email protected] Gisella Barisone +39.02.7781 4618 [email protected]

Industry Research Macroeconomic and Financial

Market Research

Equity Research

Enza De Vita Francesca Pascali Marco Cristofori Head of Global Markets Sales [email protected] [email protected] +39.02.6275 3015 [email protected] Alessandro Michele Ravogli Anna Cristina Visconti Vincenzo Petrignano [email protected] [email protected] [email protected] Massimo Vecchio +39.02.6275 3016 Sales ECM & DCM Paolo Manzoni [email protected] [email protected] Andrea Paolo Martini Oriana Cardani, CFA +39.02.7781.4341 Quantitative Analysis Paolo Leoni +39.02.6275 3017 [email protected] [email protected] [email protected] Francesco Martinelli Roberta Pupeschi [email protected] Lorenzo Biagioli Dario Fasani +39.02.7781 4682 [email protected] +39.02.6275 3014 [email protected] [email protected] Debora Palmieri Laura Katherine Milic [email protected] +39.02.7781 4616 [email protected]

mailto:[email protected]

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