Equity Capital Markets Report
FY 2018 Despite market volatility, momentum for new listings remains: 38 new companies admitted to Borsa Italiana markets
Equity Primary Markets, Borsa Italiana London Stock Exchange Group 1. The Global IPO Market & The London Stock Exchange Group
Page 2 LSEG is one of the leading groups in the Global IPO Market
Number of IPOs by Exchange Nationality in FY 2018
• Across Europe, IPO proceeds totaled c. €38 billion in FY 2018, down -16% (yoy). The total number of IPOs is down -14% (yoy) in the same period.
• €12.8 billion raised across LSEG markets via 110 IPOs.
• In addition, c. €32.5 billion raised across LSEG markets via more than 550 FOs.
• FY 2018: FTSE MIB -16%; FTSE 100 -12%; Germany DAX -18%; France CAC 40 -12%; Euro STOXX 50 -15%.
Note: Number of IPOs by listing venue. All calculations based on deal pricing date. Index performances from FactSet. GBP/EUR = 1.13. Source: London Stock Exchange, Borsa Italiana, FactSet, and Dealogic, December 2018.
Page 3 LSEG is the leading stock exchange group in Europe
Top 10 Exchange Groups in Europe by IPO capital raised – FY 2018 • LSEG is the leading stock exchange group in Europe in terms of both capital raised and number of IPOs (79 14 120 IPOs in London and 31 in Milan).
IPO Capital Raised • As of end December 2018, the aggregate market cap of 12 No. of IPOs 100 companies that had their IPOs in London and in Milan in FY 2018 is equal to c. €33 billion.
10 • In November, Digital Value raised €22.5 million via the 80
ELITE SPAC in Cloud model, the first company to be billion)
successfully listed using the model. The company listed
€ 8 on AIM Italia in Milan.
60
Raised ( Raised • More international companies listed in London than on 6 No. of IPOs No. of all European exchanges combined in 2018, with 21 IPOs.
40 • In October, Smithson Investment Trust raised £823 million
IPO Capital IPO 4 through its listing on LSE’s Main Market, making it the largest investment trust IPO ever on London’s markets, 20 and the second largest IPO in London in 2018. 2
• Aston Martin Lagonda is the largest IPO in London in 0 - 2018, with an offer size of £1.1 billion. LSEG Frankfurt Euronext NASDAQ SIX Swiss Oslo Stock Istanbul Stock Madrid Stock Warsaw Stock Bulgarian Stock Nordic Exchange Exchange Exchange Exchange Exchange Stock Exchange Exchange - Sofia
Note: All calculations based on deal pricing date. GBP/EUR = 1.13. Source: London Stock Exchange, Borsa Italiana, and Dealogic, December 2018. Page 4 2. Italian Equity Markets, FY 2018
Page 5 2018 key figures 38 new companies admitted, of which 31 IPOs that raised c. €2 billion
31 IPOs Market Cap at admission breakdown by industry • 26 on AIM Italia (of which 7 SPACs) 3% 1% • 4 on MTA (of which 2 on STAR segment) 5% 38 • 1 on MIV (RAIF) 5% admissions Industrials, 42% 8% Financials, 36% 7 Other Admissions 42% Health Care, 8% • 5 Business Combinations Technology, 5% • 1 split from SPAC • 1 split from SIIQ Consumer Goods, 5% Consumer Services, 3% Telecom, Oil & Gas, 1% 6 Market Transfers 36% • 6 Transitions from AIM Italia to MTA (of which 2 to STAR Segment) Number of admissions since 2007
Raised by companies listed on AIM 45 € 1,325 Mn 39 Italia 40 38 • Average raised: € 51 Mn 35 33 33 € 2 Bn • Total market cap at IPO: € 1.8 Bn 30 28 Capital € 523 Mn Raised by companies listed on MTA Raised at 25 • Average raised: € 131 Mn 20 19 IPOs • Total market cap at IPO: € 1.5 Bn 20 15 9 10 10 € 150 Mn Raised by companies listed on MIV 10 8 7 • Average raised: € 150 Mn 5 • Total market cap at IPO: € 150 Mn - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Borsa Italiana, December 2018.
Page 6 MTA case studies, 2018
• International leader in production of non- • A leader in control technology and refillable and aluminium closures humidification for air conditioning and • Shares started trading on STAR segment refrigeration on 06/08/2018 after Business • Shares started trading on STAR segment Combination with Space4, which had on 11/06/2018 raised € 500 Mn in 2017 • Market cap at IPO: € 720 Mn 1 • Capital raised at IPO: € 290 Mn (of which € • Peninsula Capital II participated in the 252 Mn to existing shareholders) transaction and became the largest • Oversubscribed 4.5x institutional investor in Guala Closures
6 • Worldwide leader in supplying the plastics 1 3 • Leader in Italy in the field of private admissions industry with ancillary equipment, accredited healthcare that employs over engineered solutions and other services 1,800 people • Shares started trading on STAR segment • Shares started trading on 09/11/2018 on 19/10/18 • Market cap at IPO: € 267 Mn • Market cap at IPO: € 445 Mn • Capital raised at IPO: € 64.5 Mn (100% • Capital raised at IPO: € 156 Mn (100% for capital increase) 1 existing shareholders) Industrials, 3 Health Care, 1 Technology, 1 Financials, 1 • Italian SIIQ with the objective of creating • Provider of business solutions and services and maintaining a medium-long term through the use of technology that income real estate portfolio consisting of employs more than 1,500 people and has commercial property (mainly retail and a portfolio of more than 150 clients office) • Shares started trading on 19/12/2018 • Aedes (formerly named Sedea) is a result • Market cap at IPO: €108 Mn of a 1:1 spin-off from Restart (formerly • Capital raised at IPO: €12.56 Mn Aedes) • Shares started trading on 28/12/2018
Note: Companies admitted to trading on MTA in 2018. Source: Borsa Italiana and publically available information, December 2018. Page 7 AIM Italia case studies, 2018
• Industry: Financials • Industry: Financials • Industry: Financials • SPAC • SPAC • SPAC • Money Raised: € 100 Mn • Money Raised: € 600 Mn • Money Raised: € 100 Mn 1 • Start of trade: 01/02/18 • Start of trade: 01/02/18 • Start of trade: 27/02/18 1 1 1 8 2
• Industry: Financials • Industry: Health Care • Industry: Cons. Services • SPAC • Market Cap: € 9.2 Mn • Market Cap: € 30.5 Mn 31 4 • Money Raised: € 140 Mn • Money Raised: € 3.1 Mn • Money Raised: € 7.8 Mn admissions • Start of trade: 07/03/18 • Start of trade: 09/03/18 • Start of trade: 27/03/18
8 5
• Industry: Financials • Industry: Financials • Industry: Industrial • SPAC • SPAC • Market Cap: € 112.8 Mn Financials, 8 Industrials, 8 • Money Raised: € 110 Mn • Split from EPS Equita PEP • Money Raised: € 31.0 Mn Consumer Services, 5 Consumer Goods, 4 • Start of trade: 20/04/2018 • Start of trade: 10/05/2018 • Start of trade: 14/05/2018 Technology, 2 Health Care, 1
Basic Materials, 1 Telecommunications, 1
Oil & Gas, 1 • Industry: Industrial • Industry: Financials • Industry: Industrial • Business Combination • SPAC • Market Cap: € 42.8 Mn • Market Cap: € 45.7 Mn • Money Raised: € 47.0 Mn • Money Raised: € 4.9 Mn • Start of trade: 14/05/2018 • Start of trade: 21/05/2018 • Start of trade: 01/06/2018
Note: Companies admitted to trading on AIM Italia in 2018. Source: Borsa Italiana, December 2018. Page 8 AIM Italia case studies, 2018
• Industry: Cons. Goods • Industry: Cons. Services • Industry: Industrial • Industry: Cons. Goods • Business Combination • Mkt Cap: € 27.0 Mn • Market Cap: € 38.2 Mn • Market Cap: € 49.1 Mn • Market Cap: € 166.3 Mn • Money Raised: € 5.0 Mn • Money Raised: € 10.4 Mn • Money Raised: € 12.1 Mn • Start of trade: 04/06/18 • Start of trade: 04/07/18 • Start of trade: 06/07/18 • Start of trade: 11/07/18
• Industry: Cons. Goods • Industry: Cons. Services • Industry: Telecom. • Industry: Cons. Services • Market Cap: € 49.7 Mn • Market Cap: € 12.5 Mn • Market Cap: € 43.8 Mn • Market Cap: € 25.9 Mn • Money Raised: € 18.5 Mn • Money Raised: € 2.0 Mn • Money Raised: € 11.0 Mn • Money Raised: € 3.0 Mn • Start of trade: 12/07/18 • Start of trade: 13/07/18 • Start of trade: 18/07/2018 • Start of trade: 26/07/18
• Industry: Industrial • Industry: Cons. Services • Industry: Industrial • Industry: Financials • Business Combination • Market Cap: € 18.0 Mn • Market Cap: € 40.4 Mn • SPAC • Market Cap: € 85.1 Mn • Money Raised: € 5.2 Mn • Money Raised: € 12.0 Mn • Money Raised: € 60 Mn • Start of trade: 30/07/2018 • Start of trade: 01/08/18 • Start of trade: 02/08/2018 • Start of trade: 02/08/18
• Industry: Industrial • Industry: Oil & Gas • Industry: Consumer Goods • Industry: Technology • Market Cap: € 8.5 Mn • Market Cap: € 19.8 Mn • Business Combination • Market Cap: € 8.0 Mn • Money Raised: € 5.0 Mn • Money Raised: € 2.0 Mn • Market Cap: € 161.5 Mn • Money Raised: € 1.5 Mn • Start of trade: 03/08/2018 • Start of trade: 09/08/2018 • Start of trade: 01/10/2018 • Start of trade: 26/10/2018
• Industry: Technology • Industry: Industrials • Industry: Consumer Goods • Market Cap: € 70.4 Mn • Market Cap: € 21.5 Mn • Market Cap: € 39.2 Mn • Money Raised: € 22.5 Mn • Money Raised: € 5.7 Mn • Money Raised: € 5.1 Mn • Start of trade: 08/11/2018 • Start of trade: 19/11/2018 • Start of trade: 17/12/2018
Note: Companies admitted to trading on AIM Italia in 2018. Source: Borsa Italiana, December 2018. Page 9 Key historical figures In FY 2018, €3.5 billion aggregate market cap at IPO, €2.0 billion raised through IPOs and €2.3 billion raised via FOs
Market cap evolution and % Market cap on GDP Investment flows channelled through the exchange via IPO and further offers
Market cap (€ Bn) % Market cap on GDP Money raised via IPOs (€ Mn) Money raised via FOs (€ Mn)
900 80% 25,000
800 70%
20,000 700 60%
600 50% 15,000 500 40% 400 10,000 30% 300
20% 200 5,000
100 10%
- 0% - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Borsa Italiana, December 2018.
Page 10 Relative performance of FTSE MIB compared to other benchmark indices
International comparison of benchmark index performance, January 2017 to December 2018
Jan 2017 to Dec 2018 performances
+11%
- 4%
- 5%
- 6%
- 8%
- 9%
Source: Borsa Italiana and FactSet, December 2018.
Page 11 Performance of mid and small cap indices
Indices performance since 2003
300
250
200 FTSE Italia Mid Cap + 68% 150 FTSE Italia All-Share - 17 %
100 FTSE Italia Small Cap - 28 %
50
0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Indices performance, January 2017 to December 2018
150 140 130 120 110 FTSE Italia Mid Cap + 6% 100 FTSE Italia All-Share - 4 % 90 FTSE Italia Small Cap - 5 % 80 70
60
Jul-17 Jul-18
Oct-17 Oct-18
Apr-17 Apr-18
Jan-17 Jun-17 Jan-18 Jun-18
Feb-17 Mar-17 Feb-18 Mar-18
Nov-17 Dec-17 Nov-18 Dec-18
Aug-17 Sep-17 Aug-18 Sep-18
May-17 May-18
Source: Borsa Italiana and FactSet, December 2018.
Page 12 3. Outlook on Italian Equity Markets
Page 13 Snapshot of listed companies
companies listed on Borsa 28% 20% 18% 13% Financials Consumer Utilities Industrials 357 Italiana Goods € 542 Bn 10% 3% 3% 2% Oil & Gas Basic Health Care Telecomm. aggregate market Materials € 542 Bn capitalisation 2% 1% Cons. Serv. Technology 40 companies, aggregate market capitalisation € 404 FTSE MIB Bn, representing 75% of 100 total market capitalisation 90 90 82
74 listed companies, 80
STAR € 33 Bn total market 70 60 51 capitalisation MTA 50 44 AIM Italia 40 MIV 27
No. of No. of Companies 30 113 listed companies, 19 20 14 AIM Italia € 6.6 Bn total market 11 13 capitalisation 10
0 €0-5m €5-10m €10-50m €50-100m €100-500m €500m-€1bn €1-5bn €5-10bn €10bn+ Market Cap Bands Note: Market Capitalisation data refers to domestic companies only. Chart on bottom right: domestic companies that are not suspended. Source: Borsa Italiana, December 2018. Page 14 FTSE MIB companies
Key stats on FTSE MIB companies Industry breakdown by market cap
3% 3% Financials, 31% 3% 3% • 40 companies comprise the FTSE MIB index, which represents the Utilities, 20% 9% 31% largest and most liquid companies in the market Consumer Goods, 15% • € 404 Bn total market cap, € 10.4 Bn average market cap Oil & Gas, 13% Industrials, 9% • € 54 Mn average daily turnover in FY 2018, 5,112 average daily N. 13% of contracts Health Care, 3% Basic Materials, 3% • 94% of foreign investors out of total number of institutional investors Technology, 3% in FTSE MIB companies 15% 20% Telecommunications & Consumer Services, 3%
Performance FTSE MIB, FTSE Italia Mid Cap and FTSE Italia All-Share since FTSE Italia Index Series: - 16% 2003 FTSE Italia Mid Cap + 68% Review Dates FTSE MIB FTSE Italia All-Share - 17% in FY 2018 300 March: effective from 19 Mar, FTSE MIB - 25% announcement on 28 Feb, cut-off 19 250 Feb
200 - 3% June: effective from 18 Jun, FTSE MIB announcement on 30 May, cut-off 21 150 since 2014 May September: effective from 24 Sep, 100 announcement on 5 Sep, cut-off 27 Aug 50 - 6% FTSE MIB December: effective from 27 Dec, 0 since 2009 announcement on 5 Dec, cut-off 26 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nov
Note: Market Capitalisation data refers to domestic and foreign companies. Source: Borsa Italiana and FactSet, December 2018.
Page 15 FTSE Italia Mid Cap companies
Key stats on FTSE Italia Mid Cap companies Industry breakdown by market cap 2% 3% 2% 4% Industrials, 31%
Financials, 20% • 60 companies comprise the FTSE Italia Mid Cap index 11% 31% Utilities, 15% • € 85 Bn total market cap, € 1.4 Bn average market cap Consumer Goods, 12% • € 2.9 Mn average daily turnover in FY 2018, 784 average daily N. of Consumer Services, 11% 12% contracts Telecommunications, 4% Oil & Gas, 3% • 87% of foreign investors out of total number of institutional investors Technology, 2% in FTSE Italia Mid Cap companies Basic Materials, 2% 15% 20%
Performance FTSE MIB, FTSE Italia Mid Cap and FTSE Italia All-Share since - 20% FTSE Italia Index Series: 2003 FTSE Italia Mid Cap + 68% Review Dates FTSE Italia FTSE Italia All-Share - 17% Mid Cap in 300 FY 2018 March: effective from 19 Mar, FTSE MIB - 25% announcement on 28 Feb, cut-off 19 250 Feb
200 + 30% June: effective from 18 Jun, FTSE Italia announcement on 30 May, cut-off 21 150 Mid Cap May since 2014 September: effective from 24 Sep, 100 announcement on 5 Sep, cut-off 27 Aug 50 + 70% December: effective from 27 Dec, FTSE Italia announcement on 5 Dec, cut-off 26 0 Mid Cap 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nov since 2009
Source: Borsa Italiana and FactSet, December 2018.
Page 16 FTSE Italia Small Cap companies
Key stats on FTSE Italia Small Cap companies Industry breakdown by market cap 1% 2%1% 1% 2% Industrials, 33%
9% Consumer Goods, 20%
• 125 companies representing 10 industries 33% Consumer Services, 17% • € 14 Bn total market cap, € 112 Mn average market cap Financials, 14% Technology, 9% • € 344,903 average daily turnover in FY 2018, 148 average daily N. of contracts 14% Utilities, 2% • 73% of foreign investors out of total number of institutional investors Telecommunications, 2%
Basic Materials, 1%
Health Care, 1% 17% Oil & Gas, 1% 20%
Performance FTSE Italia Mid Cap, FTSE Italia All Share and FTSE Italia Small - 25% FTSE Italia Index Series: Cap since 2003 FTSE Italia Mid Cap + 68% FTSE Italia Review Dates FTSE Italia All-Share - 17% Small Cap 300 in FY 2018 March: effective from 19 Mar, FTSE Italia Small Cap - 28% announcement on 28 Feb, cut-off 19 250 Feb
200 + 7% June: effective from 18 Jun, FTSE Italia announcement on 30 May, cut-off 21 150 Small Cap May since 2014 September: effective from 24 Sep, 100 announcement on 5 Sep, cut-off 27 Aug 50 - 14% December: effective from 27 Dec, FTSE Italia 0 announcement on 5 Dec, cut-off 26 Small Cap 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nov since 2009
Source: Borsa Italiana and FactSet, December 2018.
Page 17 STAR segment
Key stats on companies listed on the STAR segment Industry breakdown by market cap
4% 1% 1% • 74 companies representing 9 industries 6% Industrials, 49%
• Alongside being included in the FTSE Italia STAR index, STAR companies 8% Financials, 12% are also included in FTSE MIB, FTSE Italia Mid Cap and FTSE Italia Small Health Care, 10%
Cap indices Consumer Services, 9% 49% • € 33.3 Bn total market cap, € 456 Mn average market cap 9% Technology, 8% Consumer Goods, 6%
• Approximately € 6.0 Bn raised at IPO, of which € 1.8 Bn raised through Utilities, 4% 10% capital increase* Basic Materials, 1% • C. € 3.4 Bn raised through follow ons Telecommunications, 1% 12% • 90% of foreign investors on total institutional investors
Performance FTSE Italia STAR and FTSE Italia All-Share - 17% STAR Conference FTSE Italia STAR +274% FTSE Italia • In 2018, the STAR Conferences STAR in 600 in Milan and in Londonwere FTSE Italia All-Share - 17% FY 2018 500 privileged occasions for one to one meetings between STAR 400 + 79% FTSE Italia companies and investors 300 STAR since 2014 200 • Overall, 123 companies, 410 100 + 257% investors participated in the FTSE Italia conferences and 3,600 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 STAR meetings had been organized since 2009
Note: *refers to all companies listed on the STAR Segment since 2001 Source: Borsa Italiana and FactSet, December 2018.
Page 18 AIM Italia
Key stats on AIM Italia companies Industry breakdown by market cap
4% 3% 1% • 113 companies representing 10 industries 4% Financials, 30% Basic Materials, 17% • All companies listed on the AIM Italia market are eligible for inclusion in the FTSE AIM 6% 30% Italia index Consumer Goods, 13% Industrials, 13% 9% • € 6.6 Bn total market cap, € 59 Mn average market cap, € 35 Mn median market cap Consumer Services, 9% • € 3.6 Bn raised at IPO, of which: Technology, 6% Health Care, 4%
• € 3.4 Bn raised in capital increase (94%) Oil & Gas, 4% 13% Utilities, 3% • € 0.2 Bn raised by sale of existing shareholders (6%) 17% Telecommunication, 1% • 36.5 % average free float at IPO 13%
Evolution of number of listed companies Money raised breakdown
113 15% 22% 95 < 3 €Mn 74 77 6% 3 - 5 €Mn 57 5 - 10 €Mn 10 -20 €Mn 36 13% 24 20 -30 €Mn 20 21% 15 > 30 €Mn 7
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 23%
Source: Borsa Italiana, December 2018.
Page 19 Snapshot of Listed Investment Vehicles on the Italian markets
A clear proposition for Italian markets after AIFMD 15 Closed - MIV: the regulated market dedicated to investment vehicles. Investment vehicles include both Alternative Investment Funds (AIFs), including ELTIFs and Venture Capital Funds, and Special Investment Vehicles (SIVs), including SPACs Ended Funds
• 15 closed-ended funds are listed on MTA: the regulated market dedicated to SIIQ (REITs), with a minimun NAV of €200 mln at MIV – Market for Investment admission or a ratio NAV / (NAV + Capital Increase) >=0.3 Vehicles. Investment strategies mainly focused on Real Estate AIM Italia: the growth market dedicated to companies and small investment vehicles
3 Permanent 6 SIIQ (REITs) 13 SPACs Capital Vehicles
• 2 Reserved Alternative Investment • 13 SPACs currently listed on AIM Companies listed on MIV and AIM • 6 Real Estate Investment Trusts Italia Italia, respectively (Società di Investimento Immobiliare
Quotata) listed on MTA (of which 1 on • 15 SPACs have completed Business • 1 Specialty Investment Company STAR segment) Combinations listed on MIV
Source: Borsa Italiana, December 2018.
Page 20 The first listed private equity fund under the form of a SICAF-RAIF
Company Details Transaction Details Investment policy An investment company with fixed capital that operates in the NB Aurora S.A. SICAF- private equity market focused on investing in Italian SMEs and Company Listing Date 04/05/2018 funds. RAIF Key peculiarities: Money raised at IPO € 150 Mn • First investment was the acquisition of 44.55% of the MIV – Professional Market units of Fondo Italiano d’Investimento. Segment • Focus on Italian small mid cap companies with turnover typically between €30 Mn and €300 Mn and Market Cap at IPO € 150 Mn are leaders in their respective niches/market. Industry Financials • Equity ticket betweeen €10 Mn and €50 Mn, possibly to leverage on co-investments and to syndicate the Market Cap (end Dec. 2018) € 142 Mn deals. Ticker NBA • Mainly family-owned companies that have never been invested by a financial sponsor. Country of • Preference for export-driven companies, with a clear Luxembourg Discount to NAV* - 18% competitive advantage and a feasible business plan. Incorporation
Share price performance Investors by country and by type at IPO
1% 1% 1% 10.5 Acquired FII sold its 140,000 8% 4% 1% 1% 44.55% 35.55% Closed sale Completion of of FII stake of of majority sale of General 20% Rigoni di FII sold its share capital Medical 12%
10 Assago 15.96% of Mesco Merate 120,000 stake in Group (incl. Sanlorenzo FII’s stake) 47% 9.5 100,000 NBA
published )
€ H1 2018 9 results 80,000 NBA completes 78% acquisition of price price ( 26% minority stake in
8.5 Club del Sole 60,000 Share FII Italy, 78% United Kingdom, 12% Asset Manager, 47% Family Office, 26% 8 completes 40,000 sale of Private Banking, 20% NB, 4% Megadyne United States, 8% Luxembourg, 1% 7.5 20,000 sharesof(actual) Volumenumber Insurance, 1% Managers, 1% Others, 1% Switzerland, 1% 7 0 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Note: *Calculated on NAV as at 30/06/2018. Source: Borsa Italiana and publically available information. December 2018.
Page 21 Listed Real Estate Investment Funds
15 Closed-ended Real Estate Investment Funds listed on MIV – Regulated Market
SGR - Investment Market Cap, Premium / Avg. Daily Expiration NAV, €Mn Financial Instrument Advisor - Investment Market Segment Sub-type €Mn (end Dec Discount to Turnover, € Date (30/06/2018) Manager 2018) NAV (FY 2018) Mediolanum Gestione Real Estate Investment QF Mediolanum RE B MIV SMIV 31/12/21 150 279 -46% 34,636 Fondi SGR Fund DeA Capital Real Estate Real Estate Investment QF Alpha Immobiliare MIV SMIV 27/06/30 144 284 -49% 40,492 SGR Fund Real Estate Investment QF Immobiliare Dinamico BNP Paribas Reim SGR MIV SMIV 31/12/20 122 267 -54% 52,181 Fund DeA Capital Real Estate Real Estate Investment QF Atlantic 1 MIV SMIV 31/12/19 113 262 -57% 74,291 SGR Fund Real Estate Investment QF Unicredit Imm Uno Torre SGR MIV SMIV 31/12/20 102 162 -37% 62,898 Fund Amundi Real Estate Italia Real Estate Investment QF Amundi RE Europa MIV SMIV 31/12/19 83 145 -43% 51,802 SGR Fund Real Estate Investment QF Socrate Fabrica Immobiliare SGR MIV SMIV 31/12/20 64 119 -46% 16,508 Fund Real Estate Investment QF Opportunita Italia Torre SGR MIV SMIV 31/12/22 59 149 -60% 48,328 Fund Amundi Real Estate Italia Real Estate Investment QF Amundi RE Italia MIV SMIV 31/12/19 55 145 -62% 27,024 SGR Fund Polis Fondi Immob. Real Estate Investment QF Polis MIV SMIV 31/12/20 53 96 -45% 25,663 Banche Popolari Fund Real Estate Investment QF Immobilium 2001 Investire SGR MIV SMIV 31/12/20 32 61 -48% 6,512 Fund Mediolanum Gestione Real Estate Investment QF Mediolanum RE A MIV SMIV 31/12/21 28 52 -45% 4,121 Fondi SGR Fund QF Risparmio Immobiliare Real Estate Investment Castello SGR MIV SMIV 31/12/21 21 30 -28% 562 Uno Energia Fund Real Estate Investment QF Valore Imm Global Castello SGR MIV SMIV 31/12/19 17 24 -28% 7,036 Fund Real Estate Investment QF Securfondo Investire SGR MIV SMIV 31/12/19 14 25 -41% 4,439 Fund
Source: Borsa Italiana and publically available information. December 2018.
Page 22 Real Estate Investment Trusts & Permanent Capital Vehicles
6 Real Estate Investment Trusts (SIIQ) listed on MTA Market Cap, €Mn NAV, €Mn Premium / Discount Avg. Daily Turnover, € Company Subsector (FTSE) Index (end Dec 2018) (30/06/2018) to NAV (FY 2018)
Beni Stabili* Industrial & Office REITs FTSE Italia Mid Cap 1,542 1,866 -17% 2,385,075 IGD - Immob. Grande Retail REITs FTSE Italia Mid Cap 598 1,286 -54% 1,613,141 Distribuzione
Coima Res Industrial & Office REITs FTSE Italia Small Cap 253 394 -36% 177,722 Real Estate Holding & Nova RE FTSE Italia Small Cap 43 68 -37% 25,374 Development Aedes (formerly Sedea)** Retail REITs FTSE Italia Small Cap 38 n.a. n.a. 75,443 Real Estate Holding & Restart (formerly Aedes)** FTSE Italia Small Cap 4 n.a. n.a. 379,299 Development 2 Permanent Capital Vehicles listed on MIV
Subsector Market Cap, €Mn NAV, €Mn Premium / Avg. Daily Turnover, € Company Type Market Segment (FTSE) (end Dec 2018) (30/06/2018) Discount to NAV (FY 2018)
Reserved Alternative Equity Investment NB Aurora MIV SV 142 173 -18% 69,304 Investment Company Instruments
Specialty Investment M&C MIV SMIV Specialty Finance 15 30 -50% 66,947 Company
1 Permanent Capital Vehicle listed on AIM Italia
Subsector Market Cap, €Mn NAV, €Mn Premium / Avg. Daily Turnover, € Company Type Market Segment (FTSE) (end Dec 2018) (30/06/2018) Discount to NAV (FY 2018)
Reserved Alternative Equity Investment 4AIM SICAF AIM AIMMA 5.9 5.7 +4% 2,617 Investment Company Instruments
Note: *Beni Stabili merged into Covivio and delisted on 02/01/2018. The latter started trading on MTA on the same day. ** Proportional partial splitting of Aedes in favor of Sedea. Sedea consequently renamed Aedes and Aedes renamed Restart. Admitted to trading on 28/12/2018. Source: Borsa Italiana and publically available information. December 2018. Page 23 SPACs & Business Combinations
15 SPACs have successfully completed Business Combinations with their respective target companies Capital raised at IPO SPAC SPAC Market IPO SPAC Target B.C. Target Target Market (€ Mn)
Italy 1 Investment MIV 27/01/2011 150 IVS Group 03/06/2013 MTA
Space MIV 18/12/2013 130 FILA 12/11/2015 MTA - STAR
Space 2 MIV 31/07/2015 300 Avio 10/04/2017 MTA - STAR
Made in Italy 1 AIM Italia 27/06/2011 50 Se.Sa 22/10/2013 MTA - STAR
Industrial Stars of Italy AIM Italia 22/07/2013 50 LU.VE 09/07/2015 MTA
GreenItaly 1 AIM Italia 27/12/2013 35 Prima Vera* 23/12/2015 AIM Italia
Capital for Progress 1 AIM Italia 04/08/2015 51 GPI 29/12/2016 AIM Italia
Glenalta Food AIM Italia 10/11/2015 80 Orsero 13/02/2017 AIM Italia
Industrial Stars of Italy 2 AIM Italia 27/05/2016 50.5 SIT 22/07/2017 AIM Italia
Space 3 MIV 05/04/2017 150 Aquafil 04/12/2017 MTA – STAR
EPS Equita PEP AIM Italia 01/08/2017 150 ICF Group 14/05/2018 AIM Italia
Crescita AIM Italia 15/03/2017 130 Cellularline 04/06/2018 AIM Italia
Glenalta AIM Italia 19/07/2017 98 CFT 30/07/2018 AIM Italia
Space 4 MIV 21/12/2017 500 Guala Closures 06/08/2018 MTA – STAR
Innova Italy 1 AIM Italia 19/10/2016 100 Fine Foods & Pharmaceuticals 01/10/2018 AIM Italia
Note: *New company name: Zephyro Source: Borsa Italiana, December 2018.
Page 24 SPACs & Business Combinations
13 SPACs are currently looking for target companies; 4 deals have already been announced
Capital raised SPAC SPAC Market IPO SPAC Target B.C. Target Actual Market at IPO
SprintItaly AIM Italia 21/07/2017 150 n.a. tbd tbd
Capital for Progress 2 AIM Italia 04/08/2017 65 n.a. ABK tbd
Spactiv AIM Italia 27/09/2017 90 n.a. tbd tbd
Industrial Stars of Italy 3 AIM Italia 19/10/2017 150 n.a. tbd tbd
IDeaMI AIM Italia 11/12/2017 250 n.a. tbd tbd
Alp.I AIM Italia 01/02/2018 100 n.a. Antares Vision tbd
Spaxs AIM Italia 01/02/2018 600 n.a. Banca Interprovinciale tbd
Vei 1 AIM Italia 27/02/2018 100 n.a. tbd tbd
Life Care Capital AIM Italia 07/03/2018 140 n.a. tbd tbd
Gabelli Value for Italy AIM Italia 20/04/2018 110 n.a. tbd tbd
Equita PEP Spac 2* AIM Italia 10/05/2018 - n.a. tbd tbd
Archimede AIM Italia 21/05/2018 47 n.a. Net Insurance tbd
The Spac AIM Italia 02/08/2018 60 n.a. tbd tbd
Note: *Split from EPS Equita PEP on 10/05/2018. Source: Borsa Italiana, December 2018. Page 25 The highest capital rotation on equities
Competitors comparison Turnover Velocity FY 2018 & FY 2017 • Borsa Italiana offered the highest turnover velocity among competitors in 2018. FY 2018 FY 2017
120.0% • In the last 10 years Borsa Italiana has steadily been
more liquid than other major international stock 100.0% exchanges. The high liquidity of the Italian market is sustained by a wide and diversified institutional 80.0% investors community and by an active retail base. 60.0% • Retail investors actively contribute to IPO subscription and secondary market trading. 40.0%
• In 2017 the liquidity of Italian listed companies has 20.0% further increased due to the introduction of a fiscal incentive for Italian residents to invest in Italian 0.0% Borsa NYSE DB BME SWX AUS HKXE OMX ENXT LSE assets. Turnover velocity maintained in 2018. Italiana
The Turnover Velocity is the ratio between the turnover of domestic shares and their market capitalisation. NYSE: New York Stock Exchange; DB: Deutsche Börse; BME: Spanish Exchanges; SWX: SIX Swiss Exchange; AUS: Australian Securities Exchange; HKXE: Hong Kong Stock Exchange; OMX: NASDAQ OMX Nordic; ENXT: Euronext; LSE: London Stock Exchange.
Source: Borsa Italiana elaborations on data from World Federation of Exchanges, Federation of European Securities Exchanges, December 2018.
Page 26 Milan is the leading trading venue
STMICROELECTRONICS TENARIS Analysis of dually listed companies:
Milan • The charts represent the fragmentation Milan of trades by trading venue* Paris Cboe CXE Cboe CXE NASDAQ 33.36% • The percentage of trades refers to Cboe BXE NYSE 41.32% ordinary shares and ADRs** NYSE 8.14% BZX 5.42% BZX NYSE Arca • Time period : Jan – Dec 2018 5.47% Turquoise Cboe BXE 10.16% NASDAQ BYX
11.17% NYSE Arca Turquoise 10.26% 24.06% Aquis 12.42% NASDAQ BX
FCA CNH INDUSTRIAL FERRARI
Milan Milan Milan
Cboe CXE Cboe CXE NASDAQ
NYSE NYSE NYSE 3.41% NASDAQ Cboe BXE Cboe CXE 3.44% 5.00% BZX Turquoise 4.84% Cboe BXE 5.46% 49.65% 6.42% Cboe BXE BZX BZX 54.02% 8.43% NYSE Arca NASDAQ NYSE Arca 5.58% 63.55% 8.05% Turquoise BYX Turquoise
BYX NYSE Arca 8.92% BYX 12.92% Aquis Cboe Periodic 8.95% NASDAQ BX
* Fragmentation of ordinary shares taking into account lit and auction trades by volume. ** The ratio of ordinary shares to ADRs for STMI is 1:1; for Tenaris it is 2:1. Source: Borsa Italiana elaborations on data from Fidessa. December 2018.
Page 27 4. Building the future pipeline
Page 28 A structured approach to origination In contact with 1,000+ companies and 40+ investment vehicles
Companies under watch Main activities
From Database From Advisors IPO Forum IPO Seminars
683* 850 Flagship events organized At local level, hosted by COMPANIES COMPANIES at the Exchange partners and 4 IPO Forums stakeholders 44 IPO Seminars
From Sales activity 1 to 1 meetings
170 SMALL CAPS From News 190*** COMPANIES 17 LARGE CAP VIP Dinners 40 INVESTMENT VEHICLES 129** COMPANIES Key Stakeholders With target companies (listed and private and vehicles at different companies) stages of their process 4 VIP DINNERS
From PE “In touch” Beauty contests From ELITE Updates to target 1,070**** To facilitate contacts companies on relevant COMPANIES with advisors 186***** financial news and COMPANIES 15 BEAUTY CONTESTS IPOs 2 FOR INVESTMENT 34 IN TOUCH VEHICLES
Source: Borsa Italiana internal records, based on Amadeus Database, integrated by confidential and public information. *Database – DBGEO companies (screened with the following criteria: sales>€20Mn, positive EBITDA, NFP/EBITDA<6x) potentially interested/interesting for a IPO **New companies on the news in 2018; ***meetings scheduled in 2018; ****Source: AIFI; *****ELITE companies potentially interested/interesting for a IPO Page 29 5. Key initiatives in 2018 & upcoming events
Page 30 Borsa Italiana flagship events
Italian Equity Roadshow 2018
Italian Equity Conference London Jan
STAR Conference Milan March
AIM Italia Conference May
Italian Equity Conference Asia & Australia June
Italian Sustainability Day July
Italian Equity Week (Lifestyle, Industrial, Infrastructure) Sept
AIM Italia Conference London Oct
STAR Conference London Oct
Italian Equity Conference NY & Toronto Nov 9 300+ Initiatives 6000+ Listed companies 1000+ One to one meetings Institutional investors
Page 31 Borsa Italiana Equity Roadshow in 2019
16-17 Italian Equity Conference, 20-21 STAR Conference 2019, 27 AIM Italia Conference 2019, Jan London Mar Milan May Milan A selection of Italian Mid-Large Caps. STAR Companies attending our flagship AIM Italia Companies meeting with and recurring event in Milan. domestic and international investors.
17-21 Italian Equity Conference, Italian Sustainability Day, 3-5 Italian Equity Week, 2 July June Asia & Australia Milan Sept Milan A selection of Italian Mid-Large Caps with A selection of Italian Mid-Large Caps. Listed companies from the following business in Asia and Australia. sectors: Lifestyle (3 Sept), Industrial (4 Sept) and Infrastructure (5 Sept).
21 AIM Italia Conference 2019, 22-23 STAR Conference 2019, 19-20 Italian Equity Conference, Oct London Oct London Nov North America A selection of AIM Italia Companies. STAR Companies attending our flagship A selection of Italian Mid-Large Caps and recurring event in London. attending the event in New York.
Page 32 Primary Markets Italy | Contacts
Barbara Lunghi, Head of Primary Markets, Italy [email protected] – 02/72426422
Large Caps, Investment Vehicles & Market Intelligence Mid & Small Caps Origination Patrizia Celia Fabio Brigante Head of Large Caps, Investment Vehicles & Market Intelligence Head of Mid & Small Caps Origination [email protected] – 02/72426083 [email protected] – 02/72426552 Roberta Laveneziana Francesco Paolo Virgilio Mid & Small Caps Origination Large Caps, Investment Vehicles & Market Intelligence [email protected] – 02/72426055 [email protected] – 02/72426846 Mid & Small Caps Product Development Caterina Crociata Luca Tavano Large Caps, Investment Vehicles & Market Intelligence Head of Mid & Small Caps Product Development [email protected] - 02/72426600 [email protected] – 02/72426428
Federica Giacometti Elettra Pescetto Large Caps, Investment Vehicles & Market Intelligence Mid & Small Caps Product Development [email protected] – 02/72426373 [email protected] – 02/72426465 Marketing & Events - Primary Markets, Italy Imran Abdul Cader Sofia Bottiani Large Caps, Investment Vehicles & Market Intelligence Intern Marketing & Events [email protected] – 02/72426152 [email protected] – 02/72426904
Marialivia Nutini Marketing & Events Intern [email protected] – 02/72426839
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