Zest S.p.a. · MIL:ZEST
Zest — LVenture Group — FY2020 Earnings Presentation
42 slides from Zest's earnings presentation, March 2021
Slide 1: LVenture Group Full Year 2020 Results
LVenture Group Full Year 2020 Results March 2021 One Company
Slide 2: Contents
Contents BUSINESS MODEL ECOSYSTEM RESULTS PORTFOLIO OUTLOOK APPENDIX
Slide 3: Business Model
BUSINESS MODEL
Slide 4: Investments and revenues by business line
• Investments: 51% of Total • Investments: 49% of Total • Investments: No • Revenues: 17% of Total • Revenues: 5% • Revenues: 78% of Total (services to start up) • Portfolio results: €3.5M 4
Slide 5: Investment Cycle - A Segmented Approach
Investment Cycle - An Segmented Approach LVG Investment Value Chain SERIES B SERIES C SERIES D INVESTMENT VC >€10M ACCELERATION >€3M €1-2M CASH FLOW ~€0.5M Growth Funds €160k Early Stage Funds SERIES A LVG increase in Business portfolio company Angels POST SEED valuation multiples Competitions Seed
Slide 6: What We Do – The Insoore Case
What We Do – The Insoore Case Timeline 2015-16 2017-20 • Zero Revenues Media target not 2020 November Company Status • Target: Media companies Sales €20K economically viable sales €140K (3X vs PY) • Platform launched Launches new photographer Service to connect network and technology Product photogr
Slide 7: What We Do – The Insoore Case
What We Do – The Insoore Case 2021 focus on: • sales growth • customer acquisition • product development • international expansion Insoore has received €3.1M investments to date LVG share 11.84%. LPV (100%) €16M Discussion ongoing with higher multiple 7
Slide 8: Acceleration – The Funnel
Acceleration – The Funnel Winter 2020 - Case Since 2013: • 6000+ startups analysed with a median y/y growth rate of 15% • 120 startups invested Total Applications 420 • 70 of the 80+ startups in current High Quality Applications 230 portfolio went through the acceleration program 1-to-1s 80 Final Sh
Slide 9: Portfolio – Risk Mitigation - Value Creation Metrics
Portfolio – Risk Mitigation - Value Creation Metrics Fundraising Batch: 2016/2019 vs 2012/2015 +50% -50% +200% -40% AVERAGE TIME TO FIRST AVERAGE TIME TO €1M+ ROUNDS SEED ROUND SEED ROUND POST-SEED ROUND POST DEMO-DAY Increase From From 1 year Increase From From 4 years €245k to €360k to 6 months €2
Slide 10: Investment VC – The Core
Investment VC – The Core €1.590k €945k €426k €151k Pre-Seed Seed Post Seed Follow On (Acceleration) External Investments Investments: 2020 10
Slide 11: Corporate Engagement
Open Innovation Advisory --- Training Strategic Internal External Partnership Open Open CORPORATE ENGAGEMENT Innovation Innovation Company Main Corporate Building Sponsor Validation & Acceleration On- Venturing Demand Branded Business Corporate Room Incubator Accelerator Innovation Idea Generation &
Slide 12: Corporate Accelerator - Overview
Corporate Accelerator - Overview Smart Mobility | Torino Life Science | Milano Fashion | Milano FoodTech | Milano In the last 2 years increasing demand from Italian foreign Corporates for the Green | Roma acceleration program Undergoing a new project to be launched soon 12
Slide 13: Ecosystem
ECOSYSTEM
Slide 14: Italian Venture Capital Funds - Market
Italian Venture Capital Funds - Market €300M+ €200M €100M LVG parallel FUND POSITIONING LVG the only €50M pure player on the seed VC market SEED POST SEED SERIES A+ 14
Slide 15: Italian Market - The Opportunity
Italian Market - The Opportunity European VC Market Italian VC Market Forecast €B €B Italy has historically lagged market due 13.7 to: 11.1 2018 • Limited corporate 2019 activity 2020 • Fewer institutional 7.5 6.8 investors 5.7 6.1 • Lower public 4.8 4.7 investments 3.4 1.3 1.3 1.4 0.7 0.5 0.6 Sourc
Slide 16: Public / Private Investments - Closing the Gap
Public / Private Investments - Closing the Gap Overall: Public / Private Foundations Government / CDP • €750M invested in startups in 2020 • New “decreto rilancio” • €2.2B public commitment available to finance startups in Regions 2021-2026 Crowdfunding 16
Slide 17: Italian Market - A Turning Point
Italian Market - A Turning Point A B C D E F 30% TAX BENEFIT UP TO 10% OF NO TAX ON CAPITAL 3.5% OF PIR FUNDS “FONDO NAZIONALE POST COVID-19 FOR INVESTORS PENSION FUND AUM GAINS FOR TO BE INVESTED ON PER L’INNOVAZIONE” “DECRETO RILANCIO” INVESTMENTS INDIVIDUALS SMALL CAPS AND VC €1.6B €500M FOR STAR
Slide 18: Corporate Venture Capital - Closing the Gap
Corporate Venture Capital - Closing the Gap Corporates Venture Activity Main KPIs: • 46% of aggregate startup sales (€2.5B) originated in companies with 1+ Corporate investor • Corporate venture capital up 23% in 2020 • CDP co-investing with Corporates in startups Source: “V Osservatorio: Open Innov
Slide 19: Full Year 2020
FULL YEAR 2020
Slide 20: Key Financials 2020
Key Financials 2020 2020 2019 2020 IAP € ‘M Operating Revenues 4.2 3.9 3.9 Portfolio Results 2.0 1.0 3.5 IAP value €2.5M higher vs IFRS Total Costs 5.1 5.3 5.3 EBITDA 1.1 -0.3 2.2 D&A 0.3 0.3 0.3 EBIT 0.8 -0.6 -1.9 Net Income 0.5 -0.7 1.7 PFN -0.2 2.4 2.4 Including €1M Luiss investment and €1M Cash
Slide 21: Portfolio 2020 - IAP (+€5.6M vs 2019)
€ ‘K Portofolio 2020 - IAP (+€5.6M vs 2019) 30.000 30.000 € 3.424 € 533 € 398 € € 27.177 27.177 € 533 € 398 € 3.112 € 3.424 € 21.572 22.500 22.500 € 3.112 • •3737investment investment transactions foraa value transactions for valueof of€3.1M €3.1M The methodology • •IAP use of the IAP methodology pr
Slide 22: Portfolio 2016-2020 - IFRS vs IAP
Portfolio 2016-2020 - IFRS vs IAP 4 % ~ 2 € ‘K G R CA 28.000 27.177 24.632 21.530 21.572 21.000 Leading Value Creation Startups: 16.508 17.181 • Shampora up €1M 15.394 • KaraokeOne up €0.6M 14.000 12.659 • Insoore up €0.5M 11.675 • GoPillar up €0.5M 9.469 • Parcy up €0.5M 7.000 • 7 startups more tha
Slide 23: LVG Exits - Pipeline Grows
LVG Exits - Pipeline Grows 2016 2018 2019 2020 Multiple: 2.6x Multiple: 1x Cash-in: €1M Multiple: 1.8x Multiple: 4.2x Multiple: 1.2x Multiple: 1x Multiple: <1x Multiple: <1x 23
Slide 24: Portfolio
PORTFOLIO
Slide 25: Portfolio Breakdown - 56% of Investments on High Potential Startups
Portfolio Breakdown - 56% of Investments on High Potential Startups 56% 40% Stars & High Potential average age in 16% portfolio 4 years. Increasing probability for potential exit 21% STARS >5X scenarios. HIGH POTENTIAL 23% INVESTMENT 2-5X RECOVERY 1-2X POOR PERFORMERS *69 startups out of 81 active,
Slide 26: Current Portfolio - Aggregate Startup Revenues Growth
Current Portfolio - Aggregate Startup Revenues Growth €42M €31M 7 % ~ 6 • Annual growth rate: 67% GR CA • Impressive growth €20M despite the pandemic! €15M €8M €4M €2M 2014 2015 2016 2017 2018 2019 2020 (E) CAGR: Compound Annual Growth Rate on Active Start up 26
Slide 27: Last Portfolio Value vs Invested
Last Portfolio Value Value vs vs Invested Invested 2.000.000 € 2.000.000 € Insoore 1.800.000 € LAST PORTFOLIO VALUE 1.600.000 € Soundreef 1.500.000 € Shampora 1.400.000 € 2hire 1.200.000 € Yakkyo 1.000.000 1.000.000 € € Filo Fitprime Codemotion 800.000 € Big Profiles Manet Big Profiles Manet KPI6 To
Slide 28: Startups Contributing to Portfolio Value Growth
Startups Contributing to Portfolio Value Growth 2013 2018 2016 International tech conference Subscription-based and on- Drop-shipping e-commerce platform Description and e-learning platform for demand personalised haircare for products from China developers and skincare products • Revenues 2020E: €1
Slide 29: Startups Contributing to Portfolio Value Growth
Startups Contributing to Portfolio Value Growth 2011 2014 2017 Copyright and royalty IoT - Location tracking devices and Remote check-in and entry solutions for Description management platform for music intelligent anti-abandon car-seats. hospitality and corporate offices. authors and publishers. •
Slide 30: Outlook
OUTLOOK
Slide 31: New Scenario: Global Digitisation
New Scenario: Global Digitisation 2000-2020 2021+ Digital Era • New Platforms • Machine Learning Media All sectors • Artificial Intelligence Ecommerce go • Robotics Advertising digital • New consumers expectation • Data mining • Space 31
Slide 32: 2021 Outlook
2021 Outlook • Investments in startups: up vs 2020 (€ 3.1M) • LVG well positioned to benefit • Portfolio Value: Strong revaluation, higher than 2020 from positive market prospects • Operating revenues: up in 2021, driven by new Open Innovation projects and new vertical accelerators • Scalability of
Slide 33: Appendix
APPENDIX
Slide 34: Our Numbers
Our Numbers €99M €19M €80M 8 80+ €42M(E) INVESTED IN BY BY EXITS ACCELERATED REVENUES FROM STARTUPS LVENTURE GROUP CO-INVESTORS STARTUPS OUR PORTFOLIO 1500+ 1k+ 80% 100+ 200+ 50+ JOB POSITIONS APPLICATION SUCCESS STARTUPS IN OUR INVESTORS CORPORATES CREATED BY OUR PER YEARS RATE PORTFOLIO STARTUPS 5
Slide 35: Team
Team “BOARD OF DIRECTORS. OF DIRECTORS 9 members ROBERTO MAGNIFICO STEFANO PIGHINI Board Member Chairman ALESSANDRA SCIANARO ~~ FRANCESCA BARTOLI LUIGI CAPELLO LUDOVICO PEIRCE MONICA CASSANO Legal Administration CEO IR & Operations Communication GIULIO MONTOLI LUIGI MASTROMONACO ANTONELLA ZULLO Acce
Slide 36: Ecosystem
Ecosystem Key Partners Universities & Institutional Bodies LUISS WF facebook =@E2- ~~ cdp" Fondo Nilo Ingraione TR one Ox @ @ argo pss com soe a Investors Network a 00] poor cnna ENE | Fain Zangels eos DN MBM ester 5% = Fecal tell ~~ for Growth < — sort 2, FA _is samcione YET An. SI nwctocwte DEED a
Slide 37: Rounds in H1 2020
Rounds in H1 2020 €150K €30K €338K €381K €196K € 1.4M €75K €30K €225K €3Mln €90K €300K €2.5Mln €226K €20K €300K €20K €146K €250K €100K Acceleration: €880K TOTAL: TOTAL: ~€2.4M ~ € 8.3M Q1 Q2 H1 2020 37
Slide 38: Rounds in H2 2020
Rounds in H2 2020 Totale 2020 ~€24M €1Mln €35K €600K €66K €425K €294K €1.2M €300K €10K €900K €2.5Mln €350K €152K €450K €350K €665K €445K €94K Raccolta: €120K €300K €300K €700K €500K €365K €8K Acceleration: € 710K €1.3K €550K TOTAL: TOTAL: ~ €4.4M ~ €9M Q3 Q4 H2 2020 38
Slide 39: Italian Venture Market
Italian Venture Market +4.5% 2019 2020 15 rounds - €401M 18 rounds - €419M Fund size 60 55 55 100 45 44 93 40 39 75 32 30 50 45 20 20 15 15 15 15 15 34 15 28 11 25 10 25 23 21 20 19 16 15 14 12 12 11 11 10 10 0 0 Depop Soldo Talent Garden Moneyfarm Kong TrueLayer Brumbrum CasavoGenenta ScienceFreeda
Slide 40: LVG - Shareholders
LVG - Shareholders Mercato 45,81% LV.EN. Holding 32,57% Kairos 2,97% Sara Assicurazioni 2,13% LUISS 7,14% Inarcassa 3,59% Futura Invest 5,79% (Fondazione Cariplo) Market Cap ~€25 million* 30/09/2020 *46.021.491 shares 40
Slide 41: Safe harbor statement
Safe harbor statement This document may contain forward-looking statements, which reflect current views of the management of LVenture Group, (the “Group” or “LVG”) with respect to future events and financial and operational performance of the Company and its subsidiaries (the “Group”). These stateme
Slide 42: Thanks
LVenture Group Full Year 2020 Results Thanks