Slide 1: EGM Analysis - 25YTD
EGM Analysis - 25YTD 28 May 2025 Banca Profilo Research Francesca R. Sabatini - Head of Equity Research Enrico Luca, CFA - Equity Research Analyst Michele Calusa - Equity Research Analyst
Slide 2: Agenda
Agenda EGM ALL COMPANIES 2025 NEW LISTINGS 2
Slide 3: EGM 25YTD Facts & Figures
EGM 25YTD Facts & Figures Euronext Growth Milan is dedicated to dynamic and competitive listed SMEs At the end of April 2025, seeking capital to finance growth ● EGM included 202 companies, down from 210 at the end of 2024 through a balanced regulatory ● Year to date, there have been 3 new EGM listi
Slide 4: From Small to Micro caps
EGM - From Small to Micro caps At the end of December, 89% of EGM (vs 90% yoy) companies had a market capitalization below €100mln, with 58% (vs 53% yoy) falling below the €25mln threshold. A similar distribution in terms of revenue: in FY24, 87% of EGM companies reported revenue below €100mln, with
Slide 5: Best and worst performers
EGM - Best and worst performers In last 12-months, the average performance of EGM-listed companies was negative by 9%. Impianti was the best performers whereas Portobello showed the biggest decline. -86% Portobello Impianti 400% -86% Riba Mundo Ucapital24 211% -83% Osai Automation System Ivision Tec
Slide 6: Performance since IPO
EGM - Performance since IPO Since their IPO, almost 70% of EGM companies have experienced negative performance. FOPE, Adventure and Redelfi are among top perfomers since their IPO. 35 FOPE 1201% 30 Adventure 925% 25 Redelfi 535% # of Companies 20 Eviso 485% 15 Powersoft 436% 10 ABC Co 391% 5 ALA 289
Slide 7: Growth and profitability
EGM - Growth and profitability In FY24, 61% (vs 73% in FY23) of EGM companies reported a yoy revenue growth. The average revenue growth was 8% (vs 14% in FY23). 46% (vs 43% in FY23) of EGM companies showed an EBITDA margin exceeding 15%. FY24 FY23 FY24 FY23 45% 31% 42% 27% 24% % of Companies 30% 22%
Slide 8: Liquidity
EGM - Liquidity Despite moderate signs of recovery, liquidity remains EGM's primary concern. In last 12-months, liquidity slightly improve, with 69% of companies trading less than 0.1% of their market capitalization (vs 74% in 2024). In last 3-months, the average daily traded value climbed to €40.5k
Slide 9: Tender offers and delistings
EGM - Tender offers and delistings Issuer net growth on EGM remains negative: only 10 new listings in 2024 and just 3 so far in 2025, against 9 delistings already this year. Delistings are accelerating—37 in the last 2+ years—highlighting the market's declining appeal. With low valuations and rising
Slide 10: Momentum builds with record start to 2025
EGM - Momentum builds with record start to 2025 Over the past 5 years M&A activity among EGM companies has shown steady growth, culminating in a record 103 deals in 2024. This upward trend underscores the segment’s dynamism and its continued expansion through strategic acquisitions. The momentum has
Slide 11: Consolidation continues
EGM - Consolidation continues After reaching a record high of 11,551 in January 2022, the FTSE Italia Growth Index experienced a liquidity crisis, bottoming out at 7,594 in late October 2023. Since then, it has partially recovered and recently stabilized around 8,000 points for: (i) undemanding valu
Slide 12: Overperforming Euronext Growth indexes
EGM - Overperforming Euronext Growth indexes The FTSE Italia Growth Index has not only outperformed the Euronext Growth All Shares Index over the past three years (-19.2% vs - 24.2%, respectively), but it has also demonstrated relative strength since October 2023 (2.4% vs -4.2%). After both indices
Slide 13: Euronext Growth in Europe - Comparing market multiples
Euronext Growth in Europe - Comparing market multiples Over the past three years, the FTSE Italia Growth has shown a lower median EV/Sales ratio compared to the Euronext Growth All-Share, while its P/E ratio has been higher. 2.5 20 18 2.0 16 14 1.5 12 10 1.0 8 6 0.5 4 2 0.0 0 Euronext Growth All-Sha
Slide 14: Stable outlook
EGM - Stable outlook In FY24, average revenue fell short of consensus expectations at the time of our last publication (January 2025), while EBITDA margin delivered a positive surprise. Consensus estimates for revenue and EBITDA margin have remained largely stable, suggesting that following a disapp
Slide 15: Sectors market multiples 1-year trend
EGM - Sectors market multiples 1-year trend In the last 12 months, the median EGM EV/EBITDA 1-year forward increased from 4.9x to 5.6x. Consumer Discretionary saw the largest 12M re-rating, from 4.6x to 6.3x, followed by Consumer Staples up from 6.5x to 7.4x The sectors which saw a de-rating were Ut
Slide 16: Sector market multiples
EGM - Sector market multiples As of end April 2025, EGM shows a median EV/EBITDA 2025E of 5.2x (vs previous 4.9x). Among sectors, Energy once again stands out as the cheapest, while Utilities has overtaken Consumer Staples to become the most expensive. 9.0x 8.1x 8.0x 7.0x 6.6x 6.6x 5.9x 6.0x 5.7x 5.
Slide 17: Agenda
Agenda EGM ALL COMPANIES 2025 NEW LISTINGS 17
Slide 18: New listings by sector and market cap
EGM - New listings by sector and market cap So far this year, only 3 IPOs have taken place on the EGM market, compared to 5 during the same period last year. All three were completed during the first 2 months of the year. 0 2Q25 1Q25 50 48 70 40 0 30 50 Industrials Utilities 1 1 20 2Q: 0 40 €/mln 10
Slide 19: Best performers since IPO
EGM - Best performers since IPO 60% 50% 48% 40% 30% 20% 10% 0% -10% -20% -21% -23% -30% Performance since IPO 19 Source: Bloomberg
Slide 20: New listings by revenue and margin
EGM - New listings by revenue and margin 2Q25 1Q25 EBITDA EBITDA Margin 45 1.8 4% 40 1.5 35 3% 30 1.2 €/mln €/mln 25 0.9 2% 20 15 0.6 10 1% 0.3 5 0 0.0 0% 2025 IPOs by FY24 sales 2025 IPOs by 2024 EBITDA and EBITDA margin 20 Source: Bloomberg- *IPOs of financials were excluded.
Slide 21: References
References Francesca Sabatini francesca.sabatini@bancaprofilo.it Head of Equity Research Tel. +39 02 58408.461 Enrico Luca, CFA enrico.luca@bancaprofilo.it Equity Research Analyst Tel. +39 02 58408.752 Michele Calusa michele.calusa@bancaprofilo.it Equity Research Analyst Tel. +39 02 58408.784 Via Ce
Slide 22: Disclaimer
Disclaimer ANALYST’S AND BANK’S INFORMATION R Y R W P Y Y PR .P. . (“ K”) Y T; FRANCESCA SABATINI IS RESPONSIBLE FOR THE DRAFTING OF THE DOCUMENT. BANCA PROFILO S.P.A. IS A BANK AUTHORISED TO PERFORM BANKING AND INVESTMENT SERVICES; IT IS PART OF BANCA PROFILO BANKING GROUP ( “GR P”) G -ORDINATION R