2021 05 19 AIM Italia Stock Guide

ValueTrack | Thematic Report | 19 May 2021
AIM ITALIA
VALUETRACK
Research Team
Tel: +39 02 80886654
AIM Italia stock guide info@value-track.com
About Value Track FTSE AIM Italia Index 9,255

Value Track is a capital markets and corporate finance firm focused on Mkt Cap (€bn) 7.6
mid-small caps offering a wide range of services: Equity Research,
Corporate Finance Advisory, Portfolio Advisory, Investor Relations. Our
research is available on Value Track and Borsa Italiana websites,
AIM ITALIA: AGGREGATED FY19 and FY20 FIGURES (€mn)
Bloomberg, FactSet, Thomson Reuters, S&P Capital IQ.
1% FY 2019 FY 2020
-2.
AIM Italia Stock Market: key facts & figures
4,206
AIM Italia Stock market is continuing its growth path. Indeed, it has recently 4,118 .3%
-6 mn
reached its all-time high with 140+ listed companies, for an aggregate €7.6bn -€8
650 609 .8%
-34 .3% .0%
market capitalization, thanks to ECM activity that slowed down but did not -22 -32
453 445
stop in 2020. However, room for improvement is still there as only 19
312
companies boast a market capitalization higher than €100mn, average free 204 165 194
128 132
float market capitalization is lower than €15mn, and average IPO proceeds in
2020 stood in the mid-single digit space. Revenues EBITDA EBIT Net Profit Adj. Net Profit Net Debt
Source: Value Track Analysis //Adjusted for better visibility (*) not including financial firms
AIM “Corp” FY20: lower profits, higher multiples
STOCKS WITH THE HIGHEST FY20 TOP LINE GROWTH YOY
AIM Italia Corporate on an aggregated basis in FY20 recorded almost stable
89
Revenues (-2.1% YoY) but much lower profits (EBITDA, EBIT, Adjusted Net 77 75 71 69
Profit down -6%, -35% and -32% YoY respectively) due to fixed costs and to
52 51 51
higher investments translating into depreciation charges. 40 38
32 30
Based on these figures, we calculate that at current share prices AIM Italia
market is currently trading at ca. 8.7x EV/EBITDA, 14.0x EV/EBIT and 20.3x
P/E 2020A, higher multiples if compared to one year ago, but also very
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affordable ones if we believe that FY20 should represent the bottom in terms
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AIM Italia “champions”

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Source: Value Track Analysis

Polarization remains high. While 29% of companies posted a bottom line loss
in FY20, a percentage that is double vs. the 14% registered in 2019FY, there STOCKS WITH THE HIGHEST FY20 MEANINGFUL EBIT GROWTH YOY
are also companies that keep reporting very good economic performance: 175
® Eight companies reported FY20 revenues growth higher than 50% YoY: 142
Confinvest, Culti, Cy4gate, Faramè, Iervolino Ent., Intred, Sciuker 114 112
Frames, Unidata; 81 75
56 56 49
® A dozen names reported EBIT growth rates higher than 30% YoY, out of 42
which we flag Comal, DHH, Digital360, EdiliziAcrobatica, Gibus, Ilpra;

® Comer Industries stands out in terms of Free Cash Flow and EBITDA
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Source: Value Track Analysis – Stocks with revenues>€5mn and EBIT>€1mn both in FY19 and
FY20
ValueTrack | www.value-track.com | NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA
AIM Italia | Thematic Report | 19 May 2021 | Research Team
VALUETRACK
Executive Summary
AIM Italia Stock Market continuing its growth path…

AIM Italia Stock market is continuing its growth path. Indeed:
® It currently account for 140+ listed companies, for an aggregate €7.6bn market capitalization;
® Nine different industries are represented, out of which Industrial Goods is the largest one (€2.1bn
Market capitalization, 32% of total AIM Italia market), followed by Technology one (€2.1bn
Market capitalization, 27% of total);
® Most of sectors have recovered from March ’20 sell-off, with AIM Italia index reporting +37% 1-
year return and +16% return since Dec ‘19 pre-pandemic reference point;
® Even in 2020 the ECM activity did not stop, with 21 IPOs (vs 31 in 2019), finalized at 6.8x
EV/EBITDA and 47% IPO discount.
…but size and free-float are still sub-optimal

At the same time, we note that size, (in terms of market capitalization and IPO proceeds) and free float
are still sub-optimal. Indeed:
® 88 companies are currently trading at market capitalization lower than €0mn threshold, whilst
only 19 companies at market capitalization higher than €100mn;
® Average free float market capitalization stands at €14.5mn, 26% of total;
® IPO proceeds stood at €6.5mn on average, ca. €4.5mn if we exclude Cy4gate and Labomar that
raised €21.1mn and €29.9mn respectively. This value compares to the €6.7mn average IPO
proceeds value for the whole 2019.
AIM Italia “Corporate” FY20 earnings: Stable revenues, much lower profits
In FY20 AIM Italia Corporate (sample of 108 companies) on an aggregated basis recorded:
® Revenues close to €4.1bn, almost flat YoY (-2.1% YoY);
® EBITDA, EBIT, Adjusted Net Profit at €609mn, €204mn and €132mn respectively, down -6%, -
35% and -32% YoY respectively;
® Net Debt / EBITDA stable YoY at 0.7x (1.8x, substantially stable YoY, if we do not consider those
41 companies which are Net Cash positive).
Top Down view: Concentration and polarization remain high

From a quick reading of FY2020 results, we derived the following key messages:
® The contribution of the different sectors to “AIM Italia Corp” is gradually changing, with
Industrial Goods by far the main contributor to aggregate Revenues and EBITDA level, followed
by Technology sector which overtake Industrial Goods companies at EBIT and Net Profit levels.
® AIM Italia still shows a high concentration of revenues and profits in the hands of very few big
companies. Indeed, the 10 largest companies in terms of revenues contribution to FY2020
aggregate figures accounting for ca. 47% of Sales and 59% of EBITDA;
® Polarization, as well, remains high with 29% of companies posting a bottom line loss (doubled vs.
the 14% registered in 2019FY), but also 24% of companies reporting top line growth higher than
20% YoY;
® Quality and size of companies IPOed in 2018-19 is higher than for companies IPOed earlier.
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VALUETRACK
Bottom Up view: Six companies with FY20 top line growth rates higher than 50% YoY
Polarization means that out of the total sample is possible to spot some companies that, depite Covid-
19, reported very good financial results.
Indeed, among those companies that boast: i) revenues above €5mn, ii) EBITDA higher than €0.5mn
and, iii) positive Net Profit in FY2019 and FY2020, we found out that:
® Eight companies reported growth rates higher than 50% YoY (Confinvest, Culti, Cy4gate, Farmaè,
Iervolino Ent., Intred, Sciuker Frames, Unidata);
® A dozen names reported EBIT growth rates higher than 30% YoY, out of which we flag Comal,
DHH, Digital360, EdiliziAcrobatica, Gibus, Ilpra;
® Comer Industries stands out in terms of Free Cash Flow and EBITDA cash conversion rate, close
to 64%.
In terms of leverage, as well, there are scattered situations:
® Fine Foods, Leone Film Group, Prismi, Siti B&T, Softec recorded either the highest Net Debt
position in absolute terms or the highest Net Debt / EBITDA ratio;
® On the other side, Rosetti Marino, Digital Value and Expert System are the companies with the
highest Net Cash position as of 2020 year end.
If FY20 figures are rock bottom, AIM Italia market is not expensive
Based on our dataset we calculate that at current share prices AIM Italia market is currently trading at
ca. 8.7x EV/EBITDA, 14.0x EV/EBIT and 20.3x P/E 2020A figure, higher than the multiples we
calculated one year ago (6.8x, 12.2x and 15.8x respectively), but also very affordable levels if we believe
that FY20 should represent the bottom in terms of financials.
As far as stock trading multiples by sector are concerned, we note a wide dispersion of
EV/EBITDA20A multiples, with Industrial & Prof. Services and Consumer Services recording the
highest values (10.4x and 10.0x respectively) and Media recording the lowest one (6.2x);
As far as the “top value” and “top growth” companies that we selected one year ago, we note that:
® On average they recorded very sound FY20 financials;
® “Top value” stocks outperformed both the whole AIM market and “top growth” names;
® “Top value” stocks still offer very good value, trading at much lower multiples than AIM Italia
median, but also “top growth stocks” (e.g. EdiliziAcrobatica, Kolinpharma, Portobello) do not
show higher than average multiples.
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VALUETRACK
AIM Italia Stock Market: key facts & figures

AIM Italia Stock market accounts for 140+ listed companies, representing nine different industries,
for an aggregate €7.6bn market capitalization. 88 companies are currently trading at market cap.
lower than €40mn threshold, whilst only 19 companies at market cap higher than €100mn.
Covid-19 slowed down but did not stop 2020 ECM activity on AIM Italia: 21 IPOs (vs 31 in 2019), of
which 14 in 4Q2020 and with €6.5mn proceeds on average. Most of sectors recovered from March
’20 sell-off, with AIM Italia index reporting +39% 1-year return and +16% return since Jan. 2020,
which we assumed as pre-pandemic reference point.
AIM Italia Stock Market: number of listed companies continuously growing

As of the end of April, AIM Italia counts more than #140 listed companies (vs #128 as Oct. 2020),
representing nine industries and an aggregate €7.6bn Market Cap.
Market Cap distribution by companies ranges widely, from €2mn of Ki Group to ca. €695mn of
Antares Vision. More in details we note:
® #88 companies are trading at Market Cap lower than €40mn threshold;
® #19 companies are trading at Market Cap greater than €100mn.
Average free float is now close to 26% based on a simple average of all stocks, corresponding to a
Free-float Market Cap of €14.5mn.
Well-diversified market structure by industry

In terms of market composition, we highlight:
® Industrial Goods is the first industry by total Market Cap (€2.4bn), i.e. ca. 32% of total AIM Italia
market, followed by Technology with €2.1bn Market Cap (ca. 27% of total AIM Italia market);
® Good diversification in terms of industry composition: only Industrial and Technology account for
more than 10% of total while Health Care is the less represented sector, with just #6 listed names.
AIM Italia: The current picture

Listed Companies Market Cap
Industry # As (%) (€mn) As (%)
Consumer Goods 18 12.7% 756 9.9%
Consumer Services 11 7.7% 316 4.1%
Industrials Goods 27 19.0% 2,429 31.8%
Industrial & Prof. Services 12 8.5% 184 2.4%
Technology 31 21.8% 2,070 27.1%
Media 16 11.3% 444 5.8%
Health Care 6 4.2% 596 7.8%
Energy 10 7.0% 311 4.1%
Financials 11 7.7% 533 7.0%
Total AIM 142 100.0% 7,638 100.0%
Source: Value Track Analysis (*) It still includes Antares Vision, who recently moved to MTA (STAR segment)
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VALUETRACK
ECM activity gaining back momentum in 4Q20
23 companies admitted to AIM Italia in 2020, more than half in 4Q20

Despite the low visibility and generally risk-adverse attitude driven by pandemic, the number of AIM
Italia listed companies increased over the year. Indeed, 23 companies were admitted to AIM
Italia in 2020 (vs. 26 in 2019), out of which:
® 21 through a traditional IPO process;
® 2 trough other admission processes (of which 1 business combination with SPAC).
Interesting to note, more than half of IPOs occurred over the 4Q 2020, when fears related to Covid-19
outbreak were diminishing.
In the same period:
® 4 company have been delisted (Gruppo Green Power, Fintel Energia, Energy Lab, Bio on);
® 5 companies translisted to MTA (Somec, Sicit Group, Salcef, Neodecortech, Pharmanutra,
Abitare In);
® 4 SPACs were dissolved (Life Care Capital, Spactiv, Gabelli Value and VEI 1).
As far as the proceeds of 2020 IPOs are concerned, the aggregate stood at ca. €130mn i.e. €6.5mn
average value, or ca. €4.5mn if we exclude Cy4gate and Labomar that raised €21.1mn and €29.9mn
respectively. This value compares to the €6.7mn average IPO proceeds value for the whole 2019.
AIM Italia: Number of listed companies since 2009
138 141
128
113
95
74 77
57
36
24
20
15
7
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 May'21
Source: Borsa Italiana, Value Track Analysis
IPO Proceeds in Italy in 2020 by quarter
497.2 1
29.9
21.1
7.5 9.0 8.5 8.0 8.0 7.5

5.7 4.8
3.6 1.7 3.5 2.9 3.0 2.7 2.2 2.4 2.8
1.5 0.4
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Source: Borsa Italiana, Value Track Analysis, (1) MTA Listing
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VALUETRACK
Technology is the industry with the highest number of IPO deals: 8 in 2020 (and additional
3 new in 2021 year to date) followed by Industrial Goods with 3 deals positively finalized.
AIM Italia: Total number of IPOs (lhs) and proceeds (rhs) by industry
Industrial & Prof. Financials
Aim Italia 2018 2019 2020 2021 (*) Services 2%
Tot. €163mn
Consumer Goods 3%
7%
Energy 1 0 2 1
Technology
Financials 8 1 1 0 32%
Energy
Health Care 1 3 1 0 12%
Technology 2 8 8 3
Media 1 4 1 0
Healthcare
Consumer Goods 4 2 2 0 15%
Consumer Services 2 4 2 0
Media
Industrials Goods 6 8 3 0 1%
Industrials Goods
Consumer Services 27%
Industrial & Prof. Serv. 1 1 1 1 1%
Source: Borsa Italiana, Value Track Analysis, (*) as of April 26, 2021
6.8x EV/EBITDA, 47% IPO discount, positive post IPO performance, on average
As far as valuation in IPO is concerned, we note that 2020 AIM Italia IPO deals recorded:
® 6.8x EV/EBITDA FY1 on average (5.9x median), substantially stable vs. 2019, and with a high
level of dispersion (from 12.6x multiple for TrenDevice to 2.7x for Fabilia Group);
® 47% IPO discount (calculated as the difference between IPO multiple pre-money of the issuer
and its comparables) on average and ranging from 6% for Planetel to 75% for Sourcesense. As
expected, we calculate a negative correlation between IPO discount and company size.
IPO Multiples in Italy in 2020
EV/EBITDA – IPO ’20 sorted in chronological order

Mercato Telematico Azionario (MTA) Alternative Investment Market (AIM)
Average AIM Italia 6.8 x Median AIM Italia 5.9 x

EV / EBITDA FY1 (X)
15.8
12.6
11.1 10.6
10.2
9.1 8.2
7.1 7.2
5.4 6.3 5.5
4.2 4.3 4.8 5.0
4.0 3.6
2.7
UD SEB GVS CY4 FHR SOU RETI LBM ESI TD OSA EC TCM PMT CML TNX EVS PLT CVG
1Q 2Q 3Q 4Q
IPO Discount – IPO ’20 sorted in chronological order

IPO Discount (%)
75%
69%
59% 58% 62% 63% 59% 54%
49% 46% 47% 44%
42% 38% 41% 38%
31%
18%
6%
UD SEB GVS CY4 FHR SOU RETI LBM ESI TD OSA EC TCM PMT CML TNX EVS PLT CVG
1Q 2Q 3Q 4Q
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VALUETRACK
Looking at post-IPO performances, we note:

® Only 5 names recorded negative returns (ca. -16% on average) while, on the contrary, 17 stocks
experienced a remarkable positive performance (>40% on average);
® Positive correlation between oversubscription multiple and 1-week IPO performance.
IPO Multiples in Italy in 2020
IPO ‘20 – Oversubscription vs. Performance 1-week post IPO

6.0
OSA
4.5
LBM GVS CY4
Over Subscription (x)
SEB
TNX CVG
3.0
UD
ESI SOU
TCM
RETI PLT
1.5 EC PMT
EVS
CML
FHR FNX MED
TD
0.0
-30 0 30 60 90 120
Performance 1-week post IPO (%)
AIM Italia: New listings and delistings in 2020

NEW LISTINGS DELISTINGS
Company Date Type Proceeds Company Date Type
Unidata 16-mar IPO 5.7 Fintel Energia Group 07-gen Voluntary Delisting
Sebino 19-giu IPO 3.6 VEI 1 02-mar Liquidation
Cy4gate 24-giu IPO 21.1 Gabelli Value 21-apr Liquidation
Ind. Chimiche Forestali 03-ago Other -- Neodecortech 25-mag Transition to MTA
Fabilia 11-ago IPO 1.7 Sicit Group 15-giu Transition to MTA
Fenix Entertainment 12-ago IPO 1.5 Axelero 16-lug Suspended
Sourcesense 12-ago IPO 3.5 Somec 04-ago Transition to MTA
Reti 10-set IPO 2.9 Spactiv 07-ago Liquidation
Labomar 05-ott IPO 29.9 Life Care Capital 08-set Liquidation
Franchi Umberto Marmi 05-ott Other -- TheSpac 01-ott Business Comb.
Esi 26-ott IPO 3 Gruppo Green Power 05-ott Tender Offer
Trendevice 27-ott IPO 2.7 Salcef 14-dic Transition to MTA
Osai Automotion System 03-nov IPO 7.5 Pharmanutra 15-dic Transition to MTA
Euro Cosmetic 06-nov IPO 9 Energy Lab -- Liquidation
Tecma Solutions 09-nov IPO 8.5 Bio On -- Liquidation
Promotica 27-nov IPO 4.8
Comal 16-dic IPO 8
Tenax International 18-dic IPO 2.2
Igeamed 22-dic IPO 0.4
Mit Sim 28-dic IPO 2.4
Planetel 30-dic IPO 8
Eviso 30-dic IPO 2.8
Convergenze 30-dic IPO 7.5
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VALUETRACK
Stock performance: only Industrial & Prof. Service upon negative territory
Aim Italia 1-year return is remarkably positive (+37%), albeit underperforming both FTSE
MIB and STAR indices which reported +47% and +57% 1-year return respectively. We underline a
wide difference on 1-year performances across sectors:
® Consumer Services and Consumer Gooods reported the strongest performance (+52% and +48%
respectively), embedding investors expectation on the restart of economic activities;
® Industrial & Professional Services was the only sector to report a negative price return, i.e. -12%.
Looking at shorter time frame, i.e. 1-month / 3-months performances, AIM Italia Index
overperformed STAR and MIB indices:
® At 3-months, AIM Italian Index reports +15% return, remarkably higher than ~5% of STAR and
FTSE MIB returns;
® At 1-month, AIM Italian Index still over performs (+8%) STAR and MIB indices, albeit the
differences on relative performances decrease.
Italian Stock Exchange: 1-year performances by market segment
37.4
1Y (%) 56.8
46.8
25.3
YTD (%) 14.0
11.4
15.4
3M (%) 5.2
5.8
3.0
1M (%) 0.9
0.8
0.0 10.0 20.0 30.0 40.0 50.0 60.0

ITAIM Index ITSTAR Index FTSEMIB Index
Source: Bloomberg, Value Track Analysis
AIM Italia: 1-year performances by sector (based on average)
Industrial & Prof. Services -12.3
Financials 3.5
Health Care 5.0
Energy 11.8
Media 19.0
Industrials Goods 28.4
Technology 41.7
Consumer Goods 47.5
Consumer Services 51.5
-20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0
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VALUETRACK
Above mentioned results might be biased as most of stocks plunged in early March and thus, 1-year
return would not embed the drawdown that most of stocks (and indices as well) experienced due to
Covid-19 outbreak.
In order to provide a clear picture of current markets conditions with respect to the pre-pandemic
framework, we computed the performances on a wider range, from Dec '19 up to mid-May ‘21
highlighting how AIM index recovered from pandemic impact and today reports +16%,
albeit underperforming STAR index which shows a +28% return.
Italian stock market performance since Dec ‘19
140 140
130 130
120 120
110 110
100 100
90 90
80 80
70 70
60 60
9
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12
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ITAIM Index ITSTA R Index FTSEMIB Index
In terms of AIM Italia sector performances, we note that:

® Consumer Goods, Technology and Consumer Services remain the top-3 performing
industries, reporting >30% return. However, it is worthy to note that Consumer Goods and
Consumer Services performances strongly rely on massive growth (>100%) of few names (i.e.
Sciuker Frames, Italian Wine Brands, Gibus and Farmaé Group); on the contrary, Tech growth
appeared less scattered among selected companies, even though some exceptional stock prices
increases are still there (e.g. Digital Value, Relatech and Intred);
® Financials and Industrial & Professional services are the worst performers, with
most of stocks reporting negative performance in the range of 30-40% regardless the differences
between the two industries.
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VALUETRACK
FY20 earnings season analysis

In FY20 AIM Italia Corporate (sample of 108 companies) on an aggregated basis recorded Revenues
almost flat YoY (-2.1% YoY) while EBITDA, EBIT, Net Profit suffered more from the adverse
scenario, being down -6%, -35% and -32% respectively. As an effect, ca. 29% of AIM Italia
companies reported a bottom line loss, doubled vs. the 14% registered in 2019FY.
Worthy to note, six companies reported growth rates higher than 50% YoY (Confinvest, Cy4gate,
Iervolino Ent., Intred, Sciuker Frames, Unidata), while seven names reported EBIT growth rates
higher than 30% YoY (Comal, DHH, Digital360, Gibus, Ilpra, EdiliziAcrobatica).
AIM Italia Corp. FY20: €4.2bn Revenues, €610mn EBITDA, €445mn Net Debt
In order to calculate the aggregate financial results of AIM Italia Corporate, we take into
consideration 108 listed companies, that’s to say all the companies listed on AIM Italia, out of
which we have excluded from our analysis:
® Those companies that had not approved full year figures yet;
® Those companies classified as financial and real estate ones (First Capital, Digital Magics, 4Aim,
Imvest, H-Farm, Assiteca, Copernico SIM, MIT SIM, SCM).
Aggregating 2020FY financial figures for the selected 108 companies, we highlight the following:
® Revenues close to €4.1bn, almost flat YoY (-2% YoY);
® EBITDA and EBIT at €609mn and €204mn respectively, down -6% and -35% YoY respectively;
® EBITDA margin and EBIT margin at 14.8% and 4.9% respectively;
® Adjusted Net Profit at €132mn (€128mn on a reported basis), down from €194mn (€165mn
reported) in 2019FY;
® Aggregate Net Financial Debt stable YoY at €445mn (€696mn if we do not consider those 40
companies which are Net Cash positive);
® Net Debt / EBITDA stable YoY at 0.7x (1.8x, substantially stable YoY, if we do not consider those
41 companies which are Net Cash positive).
AIM Italia: Aggregate FY2019 – FY2020 results at a glance (*)

€mn FY2019 FY2020 YoY (%, €mn)
Revenues 4,206 4,118 -2.1%
EBITDA 650 609 -6.3%
EBITDA Margin 15.4% 14.8% -66bps
EBIT 312 204 -34.8%
EBIT Margin 7.4% 4.9% -248bps
Net Profit (Net Loss) 165 128 -22.3%
Net Profit adj. 194 132 -32.0%
Net Financial Debt 453 445 -8
Net Debt/EBITDA (x) 0.7 0.7
Source: Value Track Analysis on companies' data

(*) Like-for-like comparison, i.e. both FY2019 and FY2020 figures include the same 108 companies even if not all these companies
were listed as of December 2019
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VALUETRACK
AIM Italia companies with a Net Debt exposure: FY2019 – F2020 debt metrics
€mn FY2019 FY2020
# of Companies with a Net Debt exposure 67/108 67/108
Net Debt (attributable to Net Debt companies) 724 696
EBITDA (attributable to Net Debt companies) 415 392
Net Debt/EBITDA (x) ) 1.7x 1.8x

Source: Value Track Analysis on companies’ data
Sector mix is changing with Technology increasing its weight

The contribution of the different sectors to “AIM Italia Corp” is gradually changing, with Industrial
Goods by far the main contributor to aggregate Revenues and EBITDA level, followed by Technology
sector which overtake Industrial Goods companies at EBIT and Net Profit levels.
In addition, Tech sectors is the only sector which report a positive Net Financial position (ca. €18)
among the analysed ones.
AIM Italia: Aggregate 2020FY key financials by sector (#108 companies)

Consumer Consumer Industrial Ind. & Prof.
€mn Energy Health Care Technology Media
Goods Services Goods Services
# of Companies 7 6 27 13 17 4 25 9
Revenues 161.8 305.4 922.8 346.4 559.5 162.4 1,545.2 114.3
EBITDA 34.9 44.8 137.8 172.8 47.3 9.8 147.3 14.0
EBITDA Margin 21.5% 14.7% 14.9% 49.9% 8.5% 6.0% 9.5% 12.2%
EBIT 19.7 24.6 60.0 32.0 8.2 6.5 52.1 0.4
EBIT Margin 12.2% 8.1% 6.5% 9.2% 1.5% 4.0% 3.4% 0.4%
Net Profit adj. 10.9 20.8 41.4 24.4 0.7 2.7 41.9 -11.1
Net Financial Position -65.0 -55.6 18.4 -128.1 -63.0 -1.2 -146.1 -4.3
Net debt/ EBITDA FY2020 1.9 1.2 nm 0.7 1.3 0.1 1.0 0.3
Source: Value Track Analysis on companies' data
More in details, we highlight that:

® Consumer Services recorded the highest growth both at Revenues and EBITDA level, +37% and
+29% YoY respectively, however, it remained among the “poorest” business due to 6% EBITDA
margin;
® Technology recorded the second highest growth rate, +15% Revenues and +24% EBITDA YoY.
Moreover, Tech sector was the only sector ending up with a Net Cash Position (ca. €18mn);
® Media reported similar growth rate, i.e. +13% Revenues and +21% EBITDA, even if differences on
accounting principles applied by some companies might distort the analysis;
® Industrial Goods displayed the largest turnover (€1.5bn) and Net Debt Position (€146mn) on
absolute terms among all sectors considered, however Net Debt/ EBITDA ratio 1.0x supported the
thesis of sound financial structure within the sector.
11
VALUETRACK
FY2020 AIM Italia financials by sector (based on aggregate financials by sectors)
Sectors ranked by Revenues size FY2020 (€mn) Sectors ranked by Rev. growth FY2020/FY2019 (%, YoY)
37%
1,545
15% 13%
923 7%
3%
560
346 305 -4%
162 162 114 -14%
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12
VALUETRACK
Top Down view: Key take-aways

From a quick reading of FY2020 results, we derived the following key messages:
® AIM Italia still shows a high concentration of revenues and profits in the hands of very few big
companies. Indeed, the 10 largest companies in terms of revenues contribution to FY2020
aggregate figures accounting for ca. 47% of Sales and 59% of EBITDA;
® Polarization, as well, remains high with 29% of companies posting a bottom line loss (it was 14%
in 2019FY), but also 20 companies reporting top line growth higher than 20% YoY;
® Quality and size of companies IPOed in 2018-19 is higher than for companies IPOed earlier.
Concentration on very few big players remains high

In our sample, only 4 companies reported Total Revenues >€200mn in 2020A and other 4 ones
reported Revenues in the range of €100-200mn. However, if we consider the #10 largest
companies in terms of revenues contribution to FY2020 aggregate figures, they do
account for ca. 47% of Sales and 59% of EBITDA, higher than values witnessed one year ago
when the largest #10 companies accounted for ca. 46% of Revenues and 50% of EBITDA.
AIM Italia FY2019 – FY2020: Aggregate results of 10 largest companies

FY2019 FY2020
Key financials
as % of AIM IT. €mn as % of AIM IT. €mn
Revenues 46% 1,949 47% 1,951
EBITDA 50% 327 59% 358
EBIT 61% 192 88% 180
Adj. Net Profit 69% 138 >100% 144
Net Financial Position nm 224 nm 190
Polarization in terms of performance remains high, as well

Comparing the number loss-making companies between 2019 and 2020 we note that Covid-19 has
somehow widened the dispersion between “good” and “weak” stories, with some corporate which
benefitted from emergency condition or were capable to rapidly adapt their business model to the new
economic and social framework, while others such as manufacturing, horeca and travelling ones
suffering from the persistency of pandemic. Some numbers:
® 12% of companies lost money at EBITDA level, doubling FY2019 numbers;
® 24% of companies lost money at EBIT level, i.e. #26 companies vs #14 as of December 2019;
® 29% of companies reported negative bottom-line, a huge number if compared to 14% in
FY2019, i.e. #31 vs 15# companies respectively.
AIM Italia FY2020 Loss-making companies and aggregate data (excl. Financials)
NEGATIVE POSITIVE Total
FY2020
# % €mn # % €mn # % €mn
EBITDA 13 12% -64 95 88% 674 108 100% 609
EBIT 26 24% -113 82 76% 317 108 100% 204
Adj. Net Profit 31 29% -114 77 71% 245 108 100% 132
Net Financial Position 67 62% -696 41 38% 252 108 100% -445
13
VALUETRACK
In terms of YoY growth rates, we note that:

® 51/108 companies recorded a top line decline YoY, while 26/108 ones saw a >20% growth rate;
® 48/108 companies registered negative EBIT growth, with further 11/108 stocks which recorded a
negative EBIT (and hence not meaningful YoY growth rates);
Growth rates FY2020 vs FY2019 - companies by growth clusters

Growth rate Revenues EBITDA EBIT Adj. Net Profit
Above 20% 26 32 30 37
Between 0%and 20% 31 18 13 15
Negative growth 51 42 34 33
nm (*) -- 16 31 23
Total 108 108 108 108
Source: Value Track Analysis (*) includes Loss making companies in FY2020 as well as companies not listed in FY2019
Companies IPOed in 2018-19 outperforming those IPOed earlier

Quality and size of companies IPOed in 2018-19 looks higher than for companies IPOed earlier.
Indeed, from the chart below we note that more than half of aggregate Revenues and EBITDA are
attributable to companies listed between 2018-2019, while those listed before 2015 provide zero, if not
negative, contribution to aggregate values.
AIM Italia: 2020 Revenues and EBITDA contribution by IPO date
2019
26% 2019
2020 36% 2020
9% 2009 11% 2009
0% 0%
2010 2010
2011
6% -4% 0%
2011 2012
2018 0% 0%
25% 2012 2013
0% 4%
2013 2014
5%
3% 2018
2014 21% 2015
2016 7%
2017 2015 6% 2017
2016 6%
6% 10% 6%
9%
Source: Borsa Italiana, Value Track Analysis, (*) Negative % implies EBITDA<0
14
VALUETRACK
Bottom Up view: Key take-aways
Stock picking in SMEs’ segment is crucial

As outlined above the dispersion of results has been again very high for AIM Italia companies. In such
a scenario, we suggest focusing on those stocks that offer:
® Innovation capacity, that’s to say discontinuity vs. “mainstream” business models;
® Sustainability of top line growth rates;
® Positive operating leverage.
The high potential of these stocks – to be identified via accurate selection – should justify the "costs"
of dealing with illiquid and fragmented stocks, typical of MTFs as AIM Italia.
Six companies with FY20 top line growth rates higher than 50% YoY
Hereby follows the list of those 15 “growth” companies which enjoyed Turnover and EBITDA YoY
growth rates above 20%, chosen among those that also boast: i) revenues above €5mn, ii) EBITDA
higher than €0.5mn and lastly iii) positive Net Profit in FY2019 and FY2020.
Such panel is extremely diversified, with stocks belonging to Technology (#4), Media (#3) and
Consumer Good (#3) to account for 67% of selected stocks.
Six companies reported growth rates higher than 50%: Sciuker Frames, Unidata, Intred, Cy4gate,
Iervolino Ent. and Confinvest which belong to two sectors largely exposed to Covid-19 implications,
reported a remarkable organic growth, 89% and 51% respectively.
We also spot that Italian Wine Brands benefitted from M&A growth, but we highlight that also in this
case the organic growth remained extremely interesting (+24% YoY).
2020FY: AIM Italia companies with the highest Revenues growth YoY
Growth YoY (%) Revenues (€mn) EBITDA (€mn) Net Profit (€mn)
Company Sector
Revenues EBITDA FY2019 FY2020 FY2019 FY2020 FY2019 FY2020
Sciuker Frames Consumer Goods 88.9% >100% 12.0 22.6 2.6 7.7 0.3 2.0
Unidata Technology 77.4% (*) 67.3% 13.2 23.4 5.2 8.6 1.4 3.4
Intred Technology 70.7% (**) 60.9% 20.8 35.5 8.7 14.0 4.3 6.1
Cy4gate Technology 68.5% >100% 7.4 12.5 3.1 8.6 1.9 5.0
Iervolino
Media 50.9% 49.6% 80.0 120.7 75.4 112.8 20.2 19.5
Entertainment
Confinvest Consumer Services 50.7% 73.0% 27.3 41.1 0.8 1.4 0.6 0.8
Blue Fin. Comm. Media 40.0% 17.8% 7.8 11.0 1.0 1.2 0.2 0.3
Portobello Media 38.3% 31.8% 45.3 62.7 8.2 10.9 4.8 6.0
Finlogic Industrials Goods 31.5% 40.4% 33.0 43.4 4.7 6.6 2.2 2.8
Italian Wine Brands Consumer Goods 29.7% 41.6% 157.5 204.3 18.1 25.6 9.2 15.6
Labomar Health Care 26.3% 24.5% 48.3 61.1 9.1 11.3 4.1 6.1
Sebino Industrials Goods 23.3% 97.9% 39.7 48.9 5.7 11.3 3.3 7.5
Renergetica Energy 22.7% 13.0% 9.4 11.5 4.2 4.7 1.7 2.2
Euro Cosmetic Consumer Goods 22.6% 74.9% 22.6 27.8 2.8 4.9 1.0 2.5
Digital Value Technology 21.3% 42.0% 363.2 440.6 32.0 45.4 19.1 24.1
Source: Value Track Analysis; (*) Inflated by changes in accounting principles, +36% like-for-like basis, (**) Of which 16% revenues organic growth.
15
VALUETRACK
A further useful analysis is to look for those firms able to deliver material EBIT growth,
despite a less buoyant top line evolution, again chosen among those boasting: 1) Revenues 2020 above
€5mn and reported EBIT greater than €1mn both in 2019 and 2020.
Seven companies reported EBIT growth rates higher than 30% YoY: Digital360, Gibus, Ilpra, DHH,
Comal and EdiliziAcrobatica.
2020FY: AIM Italia companies with the highest EBIT growth YoY
Growth YoY (%) Revenues (€mn) EBIT (€mn) EBIT Margin (%)
Company Sector
Revenues EBIT FY2019 FY2020 FY2019 FY2020 FY2019 FY2020
Digital360 Technology 4.4% >100.0% 25.2 26.3 1.2 3.3 4.8% 12.5%
Gibus Consumer Goods 10.2% 80.6% 40.9 45.1 3.9 7.1 9.6% 15.7%
Ilpra Industrials Goods 1.3% 55.6% 32.0 32.4 2.7 4.2 8.4% 13.0%
DHH Technology 7.8% 48.9% 16.6 17.9 2.5 3.8 15.3% 21.1%
Comal Energy 7.2% 41.0% 28.9 31.0 1.8 2.5 6.1% 8.1%
Edilizia Acrobatica Consumer Services 10.7% 35.6% 41.7 46.2 2.3 3.1 5.6% 6.8%
ELES Industrials Goods 3.4% 31.1% 17.5 18.1 1.2 1.6 6.8% 8.6%
Doxee Technology 14.3% 29.9% 15.5 17.7 2.3 2.9 14.7% 16.6%
Fine Foods Health Care 7.7% 17.0% 159.7 172.0 8.1 9.5 5.1% 5.5%
Reti Technology 3.9% 16.8% 21.0 21.8 1.2 1.4 5.6% 6.3%
Shedir Pharma Group Health Care -14.3% 13.3% 50.2 43.0 5.3 6.0 10.5% 13.9%
FOS Group Technology 11.4% 13.1% 9.7 10.8 1.2 1.4 12.4% 12.6%
Comer Industries Industrials Goods -2.1% 9.4% 404.6 396.2 27.8 30.4 6.9% 7.7%
A look at single companies leverage and FCF generation

We hereby identify those stocks that experienced positive and negative FCF over the year.
In order to preserve comparability, we are not including proceeds coming from IPO or seasoned equity
offerings. Conversely, we reckon that data can be affected by other non-recurring items like capital
injections from warrant exercise, dividend payments, M&A transactions, major capex plans.
That said, we believe it is worthy to mention the sound FCF generation achieved by Comer Industries,
which comes also after €7.2mn dividends paid as of April 2020. In other words, the company
generated ca. €32mn free cash flow, displaying an EBITDA cash conversion rate close to 64%,
extremely satisfactory also considering the manufacturing nature of its activities.
As far as leverage ratios is concerned, Leone Film Group highlights the largest Net Debt position at ca.
€66mn, followed by Siti B&T at ca. €55mn and by Fine Foods at ca. €54mn, albeit their Net
Debt/EBITDA ratios appears under control (i.e. 2.3x, 3.2x and 2.5x respectively).
On the other side, Rosetti Marino is the company with the highest Net Cash position, followed by
Digital Value at. €33mn and by Expert System at ca. €21mn.
Looking at Net Debt/EBITDA ratio, we see Prismi to report the highest ratio, greater than 10x,
followed by Softec with a 7.7x ratio and Reti at 6.2x.
16
VALUETRACK
2020FY: AIM Italia companies with highest and lowest FCF generation
Stocks with highest FCF (FY2020, €mn) Stocks with lowest FCF (FY2020, €mn)
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Source: Value Track analysis on companies' data. FY19 positions
2020FY: Top 10 AIM Italia companies for Net Cash and Net Debt position
Stocks with highest Net Cash (FY2020, €mn) Stocks with highest Net Debt (FY2020, €mn)
65
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Source: Value Track analysis on companies' data. FY19 positions
17
VALUETRACK
Valuation analysis
AIM Italia market is currently trading at ca. 8.7x EV/EBITDA, 14.0x EV/EBIT and 20.3x P/E 2020A
figure, higher than the multiples we calculated one year ago (6.8x, 12.2x and 15.8x respectively)
thanks to rebounding stock prices.
As far as the “top value” stocks and “top growth” ones that we selected one year ago, we note that: 1)
on average they recorded very sound FY20 financials, 2) “top value” names outperformed both the
whole AIM market and “top growth” names, 3) “top value” stocks still offer very good value, trading
at much lower multiples than AIM Italia median, but also “top growth stocks” do not show higher
than average multiples.
Top-down view. AIM Italia stock market trading at 8.7x EV/EBITDA, 20.3x P/E
Based on our dataset of #108 companies that have already released FY2020 results and not belonging
to financial sector, we calculate that AIM Italia Stock Market is currently trading at ca. 8.7x
EV/EBITDA and 20.3x P/E median values on 2020A financial figures.
These are higher multiples if compared to our latest updates, as consequence of rebounding stock
prices which now embed positive news flow from vaccination campaign and account from a certain
level of optimism about the economic recovery and report strong positive performances.
AIM Italia Stock Market trading multiples at a glance

EV/Sales (x) EV/EBITDA (x) EV/EBIT (x) P/E (x)
Average (May ’21) 2.2x 9.6x 14.6x 21.1x
Median (May ’21) 1.2x 8.7x 14.0x 20.3x
Average (October ’20) (*) 1.8x 8.5x 14.9x 19.4x

Median (October ’20) (*) 1.1x 7.6x 12.6x 17.0x
Average (May ’20) 1.7x 8.1x 14.1x 18.5x

Median (May ’20) 1.1x 6.8x 12.2x 15.8x
Source: Value Track analysis (*) Based on FY2020 companies' financials and on current market prices
As far as stock trading multiples by sector are concerned, we note a wide dispersion of EV/EBITDA
multiples. Indeed:
® Industrial & Prof. Services is trading at 10.4x EV/EBITDA, well above May ’20 values and
despite reporting among the worst performances according to the median on EBITDA growth rate;
® Consumer Services, by far the highest EBITDA growth sector, is trading at 10.0x
EV/EBITDA, not materially different from 2019A multiple;
® Media sector is trading at lowest multiple, 6.2x EV/EBITDA, despite the latter multiple may be
misleading, since it is affected by the content providers’ accounting, whose production costs are
capitalized (IPs) and amortized, rather than expensed.
18
VALUETRACK
Valuation Value maps – EV/EBITDA vs. EBITDA Growth in May ‘20 and May ‘21
as of May ’20 as of May ’21
15.0 15.0
Technology Industrial & Prof.

Services
EV/EBITDA 2019A (x)
EV/EBITDA 2020A (x)

Health Care
10.0 Energy 10.0 Energy
Health Care
Consumer Consumer Consumer
Goods Industrial & Prof. Technology Services
Services Consumer
Services
Industrials Goods
5.0 5.0 Goods Media
Industrials
Goods Media
0.0 0.0
-5 2 9 16 23 30 -30 -20 -10 0 10 20 30 40 50
EBITDA Growth 2019A (%) EBITDA Growth 2020A (%)
Source: Value Track analysis on companies' data
A similar pattern arises also if we look at the sector EV/Sales vs Sales Growth value maps. While some
sectors suffered more from pandemic consequence and reported negative sales growth, all of them are
currently trading at higher multiples vs May ’2o levels.
Covid-19 crisis weakened the positive correlation we found in May in EV/Sales vs. Efficiency
Ratio (i.e. the sum of Sales Growth rate plus EBITDA Margin) and now spots Consumer Services as
one of the sectors with the lowest valuation coupled with an extremely negative efficiency ratio.
Valuation Value maps – EV/Sales vs. Sales Growth in May ‘20 and May ‘21
as of May ’20 as of May ’21
2.5 2.5
Energy
Energy
2.0 2.0
EV/Sales 2019A (x)
EV/Sales 2020A (x)
Health Care
Media Technology
1.5 Health Care Technology 1.5
Industrial & Prof.
Media Industrial & Prof. Services
1.0 Services 1.0 Consumer Consumer
Consumer Industrials Consumer Services
Industrials Goods
Goods Goods Services (*)
Goods
0.5 0.5
0 5 10 15 20 25 -20 -10 0 10 20 30 40
Sales Growth 2019A (%) YoY Sales Growth 2020A (%)
Source: Value Track analysis on companies' data.
19
VALUETRACK
Bottom up view. AIM Italia “top value” stocks
High quality value stock chosen one year ago…

When we analysed AIM Italia FY19 earnings season one year ago (end of May’20) we identified 18
stocks which in our opinion were deeply undervalued, and somehow well-equipped to contain
negative implications linked to Covid-19 outbreak.
As a reminder, we drew those stocks that at the time were trading below either 1.0x EV/Sales, 6x
EV/EBITDA or 10x P/E and that, in our view, met the following criteria:
® Business resiliency – companies expected not to be heavily affected by Covid-19 implications;
® Business robustness – companies not in their start-up phase, i.e. €1mn Revenues, €0.5mn
EBITDA and EBIT;
® Financial leverage under control –Net Debt / EBITDA lower than 3x.
…on average outperformed AIM Italia market, but still offer good value
Looking at FY2020 results and at one-year stocks performances of the “top value” companies chosen
one year ago (15 companies, as three have moved to MTA), we note that:
® Business resiliency has been proven, with few exceptions. Indeed, six out of these
companies reported a double-digit growth at top line level while only two (Fope and Innovatec)
recorded revenues down by more than 20% YoY. All these companies achieved positive a positive
EBIT margin vs 26/108 AIM Italia listed companies which reported negative EBIT 2020A;
® Six companies reported very strong set of financials. Iervolino Ent., Portobello and
Italian Wine Brands recorded very high revenues growth rates (+51%, +38% and +30% YoY),
while Gibus, Gismondi and Digital Value reported +81%, +127% and +56% EBIT growth YoY;
® Nealy half of these stocks outperformed AIM Italia market, with only two stocks
(Iervolino Ent. and Innovatec) being down YoY.
AIM Italia – VT “value” stocks’ key 2020 Financials and multiples

Company FY2020 (€mn) FY2020 YoY Growth (%) EV / Sales EV / EBITDA EV / EBIT P/E Adj.
Mkt Cap (€mn) 1Y Perf. (%)
Rev EBITDA EBIT Rev EBITDA EBIT ’21E (x) ’21E (x) ’21E (x) ’21E (x)
Iervolino Entertainment 120.7 112.8 22.0 51 50 -3 1.0 1.2 6.4 6.9 131 -0.5
Portobello 62.7 10.9 8.6 38 32 26 1.2 5.5 6.2 0.8 93 255.2
Italian Wine Brands 204.3 25.6 18.2 30 42 56 1.0 8.4 10.9 16.3 228 127.1
Digital Value 440.6 45.4 34.0 21 42 26 0.8 7.8 10.5 17.7 490 182.8
Gismondi 6.5 0.7 1.4 12 -19 127 1.3 8.1 10.6 16.8 12 17.5
Gibus 45.1 8.5 7.1 10 51 81 1.4 8.7 11.3 13.8 68 159.0
AMM Group 13.6 1.9 0.5 5 -11 -69 0.7 4.3 7.5 15.7 16 40.5
Comer Industries 396.2 50.1 30.4 -2 11 9 0.8 6.2 9.4 14.7 367 70.3
Esautomation 17.7 3.6 1.9 -5 5 3 1.5 6.6 9.8 17.2 43 84.2
Poligrafici Printing 23.9 5.0 2.4 -8 -18 -35 - - - - 15 2.1
Fervi 26.3 4.1 3.0 -9 -11 -16 0.9 6.0 7.4 12.0 31 18.4
Digitouch 31.3 5.4 1.0 -13 0 -40 0.4 2.7 10.0 22.4 18 19.1
TPS 31.0 5.3 2.5 -16 -25 -38 0.8 4.2 6.3 11.6 35 27.1
Fope 26.0 3.9 2.3 -26 -42 -57 1.5 8.8 12.9 18.8 46 20.0
Innovatec 28.4 3.0 2.7 -38 -74 -56 - - - - 54 -26.8

Average 3.4 2.1 1.0 1.0 6.0 9.2 14.2 66.4
Median -2.1 0.1 -2.7 1.0 6.2 9.8 15.7
AIM Italia (median) 1.5 9.8 17.9 24.0 37.2(*)
Source: Bloomberg, Value Track Analysis. (*) it refers to the FTSE AIM Italia Index
20
VALUETRACK
® Most of these “top value” stocks still trade at multiples below AIM Italia market’s
one, thus meaning that, on average, share prices only partially embed 2021E financial
performances.
Value maps – VT “value” stocks: Valuation vs. growth and margin
EV/Sales vs Sales Growth EV/Sales vs (Sales Growth + EBITDA Margin)
2.0 2.0
FPE ESAU FPE

ESAU
1.5 GBUS 1.5
GIS
GBUS GIS
EV/Sales 2021E (x)

EV/Sales 2021E (x)
IWB IWB
COM
1.0 POR 1.0
TPS FVI DGV TPS IE >100
DGV IE
FVI
COM
AMM
0.5 AMM DGT 0.5
DGT
0.0 0.0
0 10 20 30 40 10 20 30 40 50
Sales Growth 2021E (%) Sales Growth + EBITDA Margin 2021E (%)
EV/EBITDA vs EBITDA Growth EV/EBITDA vs EBITDA Margin
10.0 10.0
IWB FPE IWB FPE
GIS
DGV
GBUS
EV/EBITDA 2021E (x)
7.5 7.5
EV/EBITDA 2021E (x)
DGV COM GBUS ESAU

FVI ESAU
POR
COM
FVI
5.0 TPS AMM 5.0 AMM
POR
TPS
DGT
2.5 DGT
2.5
IE
0.0 0.0
0 15 30 45 60 75 5 10 15 20 25 30
EBITDA Growth 2021E (%)
EBITDA Margin 2021E (%)
Bottom up view. AIM Italia “top growth” stocks
High growth stock chosen one year ago…

When we analysed AIM Italia FY19 earnings season one year ago (end of May’20), we also picked
22 names which had shown a steady growth across the latest two years (please note that a few
names were both “value” and “growth” names).
The main driver of our selection was based on turnover growth (regardless it was entirely organic or
partially due to M&A), since it remains in our view the most used metric for investors screening AIM
Italia listed companies – mostly made by start-up and scale-up companies – and it often represents a
proxy for future earning streams and long-term free cash flow.
21
VALUETRACK
…on average outperformed AIM Italia market, but still offer good value
Looking at FY2020 results and at one-year stocks performances of the “top growth” companies chosen
one year ago (15 companies, as three have moved to MTA), we note that:
® “Top Growth” stocks confirmed their potential, with 10/19 companies reporting YoY
turnover growth >20% and only TPS suffering from revenues decrease by more than 10%;
® Growth is only partially due to M&A – only in four cases among selected companies
(Neosperience, Culti Milano, Finlogic and Intred) top line growth was mostly or fully due to the
contribution of newly acquired companies;
® Margins are improving – most of the selected companies outperformed AIM Italia market
also in terms of profitability, recording EBITDA and EBIT expansion higher than top line growth;
® Share prices do not totally reflect the stocks expected growth yet: albeit most of
selected stock prices reported a positive performance, we note few names which still trade at
lower than market’s average multiples.
Among these, we highlight Portobello, Kolinpharma and Ediliza Acrobatica which consistently
trade at cheaper multiples, albeit among those with the highest expected top line growth.
AIM Italia – VT “growth” stocks’ key FY2020 Financials and 2021E multiples
FY2020 (€mn) FY2020 YoY Growth (%) EV /
EV / Sales EV / EBIT P/E Adj.
Company EBITDA Mkt Cap (€mn) 1Y Perf. (%)
’21E (x) ’21E (x) ’21E (x)
Rev EBITDA EBIT Rev EBITDA EBIT ’21E (x)
Iervolino Entertainment 120.7 112.8 22.0 51 50 -3 1.0 1.2 6.4 6.9 131.2 -0.5
Confinvest 41.1 1.4 1.2 51 73 62 - - - - 28.6 -7.8
Neosperience 16.4 4.8 0.8 18 33 -28 2.1 8.9 40.7 99.4 42.6 -9.9
Culti Milano 13.4 3.2 nm 52 146 nm 0.8 3.6 10.3 21.6 18.1 84.7
Finlogic 43.4 6.6 3.9 32 40 22 1.0 6.5 10.5 16.4 44.4 -4.6
Digital Value 440.6 45.4 34.0 21 42 26 0.8 7.8 10.5 17.7 490.4 182.8
Portobello 62.7 10.9 8.6 38 32 26 1.2 5.5 6.2 0.8 92.6 255.2
Renergetica 11.5 4.7 3.6 23 13 21 2.7 5.7 6.4 6.9 31.2 7.9
Intred 35.5 14.0 8.1 71 61 42 5.7 14.1 22.5 29.1 226.7 75.6
Growens 65.2 5.1 1.4 7 6 -25 0.8 11.3 40.1 63.2 63.2 -10.5
Cyberoo 7.6 2.5 1.1 13.4 -23.3 -84 3.9 12.8 51.3 55.3 55.3 46.8
Relatech 18.3 5.9 4.1 2 20 -4 2.8 10.9 15.0 27.2 89.8 50.6
Edilizia Acrobatica 46.2 5.0 3.1 11 19 36 1.0 8.6 11.6 17.6 52.8 27.8
TPS 31.0 5.3 2.5 -16 -25 -38 0.8 4.2 6.3 11.6 34.7 27.1
Officina Stellare 5.7 1.6 0.2 50 -46 -87 5.8 20.3 43.4 51.9 57.1 31.0
Fine Foods 172.0 21.1 9.5 8 20 17 1.7 12.0 22.4 25.8 309.7 22.4
Fervi 26.3 4.1 3.0 -9 -11 -16 0.9 6.0 7.4 12.0 31.0 18.4
Kolinpharma 8.2 1.9 1.0 -8 -5 15 1.3 6.0 12.4 19.4 13.6 -8.5
AMM Group 13.6 1.9 0.459 5.1 -11.4 -68.7 0.7 4.3 7.5 15.7 15.8 40.5
Average 22 23 -5 1.9 8.3 18.4 27.7 43.6
Median 18 20 6 1.1 7.2 11.0 18.5
AIM Italia (median) 1.5 9.8 17.9 24.0 37.2 (*)
Source: Bloomberg, Value Track Analysis. Stock prices as of 05/10/20 (*) it refers to the FTSE AIM Italia Index
22
VALUETRACK
Value maps – VT “growth” stocks: Valuation vs. growth and margin
EV/Sales vs Sales Growth EV/Sales vs (Sales Growth + EBITDA Margin)
3.0 3.0
RLT RLT
REN REN
2.5 2.5
NSP
2.0 2.0
EV/Sales 2021E (x)

EV/Sales 2021E (x)
FF FF
1.5 1.5
POR POR
KIP KIP
1.0 FVI IE 1.0 FVI
TPS DGV IE>100
DGV TPS
EDAC EDAC
MAIL
0.5
AMM CULT AMM CULT
0.5
0.0 0.0
5 15 25 35 45 20 30 40 50 60 70
Sales Growth 2021E (%) Sales Growth + EBITDA Margin 2021E (%)
EV/EBITDA vs EBITDA Growth EV/EBITDA vs EBITDA Margin
14.0 ITD 14.0 ITD

CYB CYB
12.0 FF 12.0 FF
MAIL
RLT RLT
10.0 10.0
EV/EBITDA 2021E (x)
EV/EBITDA 2021E (x)
NSP EDAC EDAC NSP

8.0 DGV 8.0 DGV
FNL FNL
6.0 FVI KIP 6.0 FVI KIP
REN POR REN
POR
4.0 TPS 4.0 TPS
CULT CULT
2.0 IE 2.0
0.0 AMM 0.0 AMM

0 15 30 45 60 75 10 25 40
EBITDA Growth 2021E (%) EBITDA Margin 2021E (%)
23
Co Ie
m r vo
er lin Di
In o git
du En al
st te Co
Ie D
rie r m Va
lu
s ta er e
AIM Italia |
rv ig in
25.9
Co m
441
ol ita m In
in lV en du
o a er t st
113
En lu In Ro rie
te e du se s
24.1
396
rt st Ita tti
ain rie lia M
m Di s n a
50
An en git W rin
ta t al in o
V
205
19.5
Ita re An al e
sV ta ue Br
45
lia re an
n is i ds
W on sV Fi
204
in
18.2
is i ne
e on Fo
29
Br Le
Thematic Report
an Ita od
ds
on
e s
172
lia
n
15.6
Fi Fil SI
ne W m TI
28
Ne in Ie An B&
tI Fo
od e rv ta T
Br
142
ns s a ol re
in s
9.3
ur Fr nd o
Source: Value Track Analysis on companies' data.

an an s Vi
26
ce ch Fi En s io
ne te n
Sp iU F
128
o rt
A m ain
7.6
od
be s m
21
rt en
Top 10 by EBITDA FY2020

Se o t
M
Top 10 by Revenues FY2020
Le
121
bi
no ar Ne on
m e
7.5
| 19 May 2021
Top 10 by Adj. Net Profit FY2020

i
18
tI Fil
In ns m
In
73
I ur
tr izi n
|
at t an
ed r ce
6.1
iv e ed
14
La Br Sp
bo es A 69
m cia
Top / bottom companies in terms of P&L figures (€mn)
ar ne
6.1
14
Companies ranked by size (FY2020)
Go Ne En
Ita In Lo ur er
te
Research Team
lia ng os gic
In
rn in
o
of Of a
et
& t fi M
-0.9
cin C
-2.6
de
a
6.0
pe Ca St
nd rd el
en en la
SG t Ex al re
-2.8
5.7
-1.3
Co pe
m rt So
pa Sy fte
st
ny em Fe c
5.5
-3.1
ni
-1.9
xE Ci
Cl
a nt rc
As er le
5.4
bo ta
ko Ar
-3.9
l te in
PR
SG -3.1 rr m
IS Co aB en
M m t
5.0
io
I pa sc
-4.9
Ki ny Fr i en
-3.4
Gr en ce
d
4.3
Ex ou Ki
pe p Gr A m y En
-5.2
rt ou br e r
Sy En p om gy
-4.2
2.3
st
En em er
gic M ob
on ili
-5.4
er a do ar
gic M e
C
2.0
a M TV
-4.4
M M on Su
C on
-6.3
do is s
na e
1.3
lis TV
As a Fr
-6.0
ko
Bottom 10 by EBITDA FY2020
l an
He W
Bottom 10 by Revenues FY2020
-7.9
ce
M
0.9
al Cl
th ab
Bottom 10 by Adj. Net Profit FY2020

Ro Ca
Ro Ita
se o Cr pi
-6.5
se lia ow ta
tti l
0.9
-10.4
tti
M M df
un
ar ar
in dm
in
o o e
0.9
Appendix: FY2020 results company by company
-31.7
-32.6
24
VALUETRACK
VALUETRACK
Companies ranked by growth (FY2020)
Top companies in terms of P&L figures growth FY2020/FY2019 (%, YoY)
Top in meaningful Revenues growth FY2020/2019 (*) Bottom in Revenues growth FY2020/2019
89 0
77 75 71 69
52 51 51
-28
40 38 -35 -34
-39 -38
-43
-46
-73 -70
…
on
l
ny
s&
l
bo
es
ta
na
ko
te
in
p
ed
a
lo
t
ed
es
no
pa
t
.
te
ur
pi
a
m
en
de
rie
es
As
ar
va
at
ou
Cl
el
a
m
Ca
ict
tr
F
ila
M
m
id
r
v
no
4g
ob
st
Gr
Ca
In
G.
ra
Co
in
sP
Co
M
Un
rst
du
tti
in
In
Cy
nf
rt
rF
aè
&
ta
riu
SG
se
Fi
In
lt i
n.
Po
Co
ke
o
r
rm
Ro
Cu
to
Fi
o
te
in
tr
iu
No
ng
Fa
En
ue
ie
Sc
Lo
iP
Bl
o
lin
c
di
vo
Ra
r
Ie
Top in EBITDA growth FY2020/2019 Bottom in EBITDA growth FY2020/2019
196
180
146
100 98 88 78 75 -38
61 -42 -41
-46 -43
-51
-54
-67
-74 -74
te
ed
lia
ic
es
no
no
en
36
et
a
m
Ita
tr
ila
bi
4g
0
sm
pe
al
o
T
P
la
c
re
es
on
In
ra
Se
r5
B&
te
ss
M
NV
in
ic o
Cy
git
th
Fo
la
ur
ed
rF
Ro
Co
va
ve
rta
el
lt i
al
Di
TI
ict
gr
F
ke
no
St
He
Co
Cu
ro
ro
SI
te
iA
sP
G.
iu
In
be
Eu
En
as
cin
riu
Sc
m
M
x
to
fi
Ga
ni
Of
No
Fe
Top in meanigful EBIT growth FY2020/2019 Bottom in EBIT growth FY2020/2019
175
142
114 112
-38 -35
81 -44 -40
75 -45
-49
56 56 -57 -56
49 42 -63
-81
ch
n
la
ec
ft
i
pe
S
i
n
m
al
TP
io
ic o
r
so
t
ou
st
ar
te
Fo
at
va
er
t
re
gr
git
m
Pa
no
Fo
iA
to
to
Di
Po
In
no
H
ra
0
te
ed
t
s
ic
as
Au
e
r
bu
en
nd
36
DH
et
be
Ilp
ic h
bi
tr
M
4g
m
sm
Gi
al
ai
m
Se
In
im
Br
in
Os
git
Cy
iU
Co
Ch
rta
e
Di
ch
in
ro
te
ie
W
an
Eu
str
En
Fr
n
du
lia
x
ni
In
Ita
Fe
Source: Value Track Analysis on companies' data.
25
VALUETRACK
Companies ranked by profitability (FY2020)
Top / Bottom companies in terms of profitability ratios
Top 10 for meaningful % EBITDA margin FY2020 (*) Bottom 10 for meaningful % EBITDA margin FY2020 (*)
93
10 11 11
10 10 10
9 10
70 69 68
8 8
41 39 39 38 37 37
H
ica
e
ed
a
t
m
t
ne
es
en
at
en
at
DH
Fil
ur
tr
ia
et
4g
id
m
In
sc
ict
ne
rg
Un
in
in
Cy
e
ne
sP
ta
ta
n
Br
al
up
on
n
s
T
la
e
di
Le
r
B&
io
lu
er
r
r
Re
ic o
riu
on
ne
te
ed
te
iv e
ro
at
Va
nt
Co
t
En
te
to
sm
TI
gr
G
m
F
Pa
at
xE
al
SI
as
G.
No
iA
to
izi
o
Gi
lU
git
ni
lin
iF
Au
as
In
ai
Fe
Di
m
vo
M
M
ai
Vi
r
Os
Ie
(*) EBITDA FY2020 above €2mn (*) EBITDA FY2020 above €2mn
Top 10 for meaningful % EBIT margin FY2020 (*) Top 10 for meaningful FCF FY2020 (*)
32
60
41
18
14
22 21 21 21 10
17 16 8 8
13 13 6 6 5 5 5 5
s
ra
PF
I
lia
e
c
ne
s
m
v.
up
M
p e t rie
bu
te
up
e
di
lu
no
ra
te
a
t
In
s
Ilp
iv e ste
xe
Ita
bu
en
cia
at
IS
DH
H
on
ro
Va
a
va
Ilp
Gi
bi
ro
a
s
DH
PR
4g
id
Do
m
y
Gi
aG
du
es
tr
Se
sm
no
th
SG
al
Un
in
Cy
et
Br
al
In
rt
In
git
m
Gi
rta
FO
El
He
ar
er
Di
te
Ex
Ph
m
at
En
Co
izi
ir
x
ed
In
ni
Sh
Fe
(*) EBIT FY2020 above €1mn (*) EBITDA FY2020 above €2mn; FCF net of IPO proceeds and after dividends
Source: Value Track Analysis on companies' data. Analysis excludes outliers
26
VALUETRACK
DISCLAIMER
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WHICH AT INDIVIDUAL COMPANY LEVEL MEET AT LEAST TWO OF THE FOLLOWING REQUIREMENTS: — BALANCE SHEET TOTAL:
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ValueTrack | Thematic Report | 19 May 2021

AIM Italia stock guide info@value-track.com

About Value Track FTSE AIM Italia Index 9,255

AIM Italia “champions”

Source: Value Track Analysis

which we flag Comal, DHH, Digital360, EdiliziAcrobatica, Gibus, Ilpra;

cash conversion rate.

AIM Italia Stock Market continuing its growth path…

…but size and free-float are still sub-optimal

Top Down view: Concentration and polarization remain high

AIM Italia Stock Market: key facts & figures

AIM Italia Stock Market: number of listed companies continuously growing

Well-diversified market structure by industry

AIM Italia: The current picture

Industry # As (%) (€mn) As (%)

Consumer Goods 18 12.7% 756 9.9%

Consumer Services 11 7.7% 316 4.1%

Industrials Goods 27 19.0% 2,429 31.8%

Industrial & Prof. Services 12 8.5% 184 2.4%

Technology 31 21.8% 2,070 27.1%

Media 16 11.3% 444 5.8%

Health Care 6 4.2% 596 7.8%

Energy 10 7.0% 311 4.1%

Financials 11 7.7% 533 7.0%

Total AIM 142 100.0% 7,638 100.0%

ECM activity gaining back momentum in 4Q20

23 companies admitted to AIM Italia in 2020, more than half in 4Q20

AIM Italia: Number of listed companies since 2009

Source: Borsa Italiana, Value Track Analysis

IPO Proceeds in Italy in 2020 by quarter

7.5 9.0 8.5 8.0 8.0 7.5

Source: Borsa Italiana, Value Track Analysis, (1) MTA Listing

IPO Multiples in Italy in 2020

EV/EBITDA – IPO ’20 sorted in chronological order

Average AIM Italia 6.8 x Median AIM Italia 5.9 x

IPO Discount – IPO ’20 sorted in chronological order

Source: Borsa Italiana, Value Track Analysis

Looking at post-IPO performances, we note:

IPO Multiples in Italy in 2020

IPO ‘20 – Oversubscription vs. Performance 1-week post IPO

Source: Borsa Italiana, Value Track Analysis

AIM Italia: New listings and delistings in 2020

Source: Borsa Italiana, Value Track Analysis

Italian Stock Exchange: 1-year performances by market segment

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Source: Bloomberg, Value Track Analysis

AIM Italia: 1-year performances by sector (based on average)

Industrial & Prof. Services -12.3

Health Care 5.0

Industrials Goods 28.4

Consumer Goods 47.5

Consumer Services 51.5

-20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0

Source: Bloomberg, Value Track Analysis

Italian stock market performance since Dec ‘19

Source: Bloomberg, Value Track Analysis

In terms of AIM Italia sector performances, we note that:

FY20 earnings season analysis

AIM Italia: Aggregate FY2019 – FY2020 results at a glance (*)

Source: Value Track Analysis on companies' data

Net Debt/EBITDA (x) ) 1.7x 1.8x

Sector mix is changing with Technology increasing its weight

AIM Italia: Aggregate 2020FY key financials by sector (#108 companies)

EBITDA 34.9 44.8 137.8 172.8 47.3 9.8 147.3 14.0