Table 1: BOMI Italia S.p.A. FY17 Results. thousand

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1 April 16, RESEARCH UPDATE Fair Value: 4.76 (Prev. 4.54) Kevin TEMPESTINI Giancarlo DI VONA Mauro IACCINO BOMI 1Y Relative Performance Chart Volume FTSE AIM Italia BOMI ITALIA S.P.A. May-17 Sep-17 Jan ,000, ,000 0 Healthcare Goods and Services A (loyal) long-term oriented value creation Bomi had a strong FY17 Revenues came in at 117.9mn (+17% YoY) and 2.8% higher than our estimates, thanks to a 12% organic growth that was particularly strong in South America (+19%), Turkey (+167%) and China (+234%). EBITDA was also better than expected, reaching 11.3mn (+29% YoY) and the EBITDA margin was 9.58%, 50 bps higher than our expectation. Net Income also beat our estimates and company guidance. On the other hand, Net Financial Position was 25.6mn 0.6mn higher than our expectation. No dividend will be paid in Table 1: BOMI Italia S.p.A. FY17 Results thousand FY17PF expected FY17PF actual act vs exp % Total Revenues % EBITDA % EBITDA margin% 9.08% 9.58% Net Income % Net Income margin% 2.04% 2.34% Net Financial Position % Source: KT&Partners elaboration Capital increases for long-term loyal shareholders. Over the coming 36 months, Bomi s management aims to continue to invest strongly on external growth. For this reason, the company has planned two capital increases: 1) 5.00mn already fully underwritten by Bomi s two main long-term financial shareholders and by BPER Banca; and 2) 12.00mn capital increase that should be approved by the next EGM. The EGM should also approve the introduction of Loyalty Shares which imply, after the migration to the regulated market, double voting rights for long-term shareholders (with a holding period of at least 24 months). Market Data: Closing Price ( ) Week Low/High ( ) Day Average Trading Volume 21,850 Price Change: 1 w 5.10% Price Change: 1 m 7.84% Price Change YTD 20.17% P/E Ratio (FY18) 15.87x P/E Ratio (FY19) 11.23x KT&Partners Srl Via della Posta, 10 - Piazza Affari, Milano - Italy Tel: Fax: segreteria@ktepartners.com Estimates revisions. We revised our estimates, increasing the FY18 top-line by 4.9% on the back of the strong performance in Brazil, LATAM, China and Turkey and a further weakening of the Brazilian Real/Euro rate. We expect a 13.64mn EBITDA in 2018 and we increased our FY18E Net Income estimates to 3.54mn (+21.2% vs our previous estimates) thanks to continuing tax optimization and lower financial expenses. We lowered 2018 Net Financial Position and increased the number of shares outstanding, considering the 5.00mn capital increase as successfully completed. Since the new shares should be issued within the price range, we conservatively considered an issuance of 1.7mn new shares or a capital increase price of For this reason, we increased EPS18E by only 9.00%, while we reduced EPS19E and EPS20E by 1.00%, since the capital increase dilution counterbalanced our expected increase in Net Income estimates. Fair value fine-tuned. Bomi is currently trading at significant discount with respect to the Median P/E of its peers for both FY18 (P/E of against 18.92) and FY19 (P/E against 17.09). As a result of our changes in estimates, we suggest a fair value equal to 4.76ps, corresponding to a Market Cap equal to 80.62mn. Million Total Revenues EBITDA EBITDA Margin EBIT Bomi Net Profit Net Margin EPS 2015A % % A % % E % % E % % E % % 0.33 Source: Company data, KT&Partners estimates

2 Table 2: BOMI Italia S.p.A. - Key Figures Current price ( ) Fair Value ( ) Sector Free Float (%) Healthcare and Services Per Share Data 2014A 2015A 2016A 2017E 2018E 2019E 2020E Total shares outstanding (mn) n.a EPS n.a Dividend per share (ord) Dividend pay out ratio (%) 0% 34% 35% 20% 0% 22% 22% Profit and Loss (EUR thousand) Revenues 67,004 78, , , , , ,629 EBITDA 7,618 8,250 8,747 11,290 13,639 15,908 17,470 EBIT 5,559 5,668 5,290 6,766 8,664 10,380 11,474 EBT 3,093 2,918 2,534 3,984 5,650 7,870 8,753 Taxes - 1,434-1,045-1,080-1,223-1,921-2,597-2,801 Tax rate -46% -36% -43% -31% -34% -33% -32% Net profit attributable to minority Net profit after minorities 738 1, ,082 3,542 5,009 5,654 Balance Sheet (EUR thousand) Total fixed assets 17,932 23,217 32,732 35,354 40,844 40,567 39,821 Net Working Capital (NWC) 2,667 4,196 2, Provisions ,855-1,633-1,495-2,080-2,724-3,430 Other asset and liabilities 1,752 1,590 1, ,011 Total Net capital employed 21,489 27,147 35,015 34,369 38,872 38,198 36,713 Net financial position (NFP) 14,316 9,632 15,953 25,548 21,740 15,793 9,357 Group Shareholder's Equity 5,021 14,881 15,440 3,350 11,476 16,485 21,138 Minorities 2,151 2,633 3,621 5,471 5,657 5,921 6,219 Total Shareholder's Equity 7,172 17,514 19,061 8,821 17,133 22,406 27,356 Cash Flow (EUR thousand) Net operating cash flow 4,671 5,239 7,667 12,173 13,110 14,731 15,412 Change in NWC - 2,204-1,529 1, Capital expenditure - 1,388-5,635-5,782-10,466-5,250-5,250-5,250 Other cash items/uses of funds Free cash flow - 4,915-3,002-3, ,060 8,681 9,412 Enterprise Value (EUR thousand) Market Cap n.a. 34,719 35,480 50,251 55,861 55,861 55,861 Minorities 2,151 2,633 3,621 5,471 5,657 5,921 6,219 Net financial position 14,316 9,632 15,953 25,548 21,740 15,793 9,357 Enterprise value n.m. 46,984 55,055 81,270 83,258 77,575 71,437 Ratios (%) EBITDA margin 11.4% 10.5% 8.7% 9.6% 10.3% 10.9% 10.9% EBIT margin 8.3% 7.2% 5.2% 5.7% 6.5% 7.1% 7.1% Gearing - Debt/equity 285.2% 64.7% 103.3% 762.7% 189.4% 95.8% 44.3% Interest cover on EBIT 27.2% 32.5% 23.0% 23.2% 22.6% 17.4% 15.9% NFP/EBITDA 187.9% 116.8% 182.4% 226.3% 159.4% 99.3% 53.6% ROCE 25.9% 20.9% 15.1% 19.7% 22.3% 27.2% 31.3% ROE 14.7% 7.9% 3.0% 62.2% 30.9% 30.4% 26.8% EV/Sales n.m EV/EBITDA n.m P/E n.m Free cash flow yield n.m. -8.6% -10.3% 1.3% 12.6% 15.5% 16.8% Growth Rates (%) Sales 2.6% 18.0% 29.1% 16.3% 12.2% 10.0% 9.8% EBITDA 23.1% 8.3% 6.0% 29.1% 20.8% 16.6% 9.8% EBIT 23.4% 2.0% -6.7% 27.9% 28.0% 19.8% 10.5% Net profit -3.9% 13.0% -22.4% 89.9% 35.1% 41.4% 12.9% Source: Company data, KT&Partners estimates April 16,

3 Company Description Bomi Group is a leading multinational group that provides a wide range of strategic logistic services to the medical device industry. Bomi has built a strong reputation based on 30 years of relationships with both the most important multinationals in the healthcare sector and the international SMEs active in the biomedical, diagnostic, and biotech sectors. FY17 Storyline May 2017: Signing of binding agreement to acquire Espadist S.A. de C.V in Mexico. May 2017: Acquisition of the remaining 20% of G. CARRAI & C. SRL. June 2017: Selling the Panama subsidiary and buying 29% of Biocarrier Colombia Sas (BOMI Colombia). June 2017: Acquiring a further 15% of RITMO holding BV (Bomi Netherlands). July 2017: Acquiring the remaining 45% of BIOMEDICAL DISTRIBUTION MERCOSUR LTDA (Bomi Brazil). October 2017: Expansion towards APAC through a Joint Venture with Yang Kee, a local partner. October 2017: Incorporation of Chasqui Srl, Berga Srl, Logit Trans Srl in G. Carrai & C. Srl, company controlled by the group. December 2017: Signing of a binding agreement for the acquisition of 100% of De Salute Srl in Italy. FY Estimates Revision We revised our estimates on the back of the strong FY17 results, increasing the the top-line by 4.9% in FY18, 5.9% in FY19, and 7.9% in FY20, on the back of the strong performance in Brazil, LATAM, China and Turkey. We incorporate in our top-line revision a further weakening of the Brazilian Real/Euro rate 1. We expect a 13.64mn EBITDA in 2018 and 3.54mn Net Income. We increased our FY18E Net Income by 21.2% on the back of the continuing tax optimization and lower financial expenses also due to the 5.00mn capital increase that is already guaranteed and that received a 3.5mn commitment by two of Bomi s most important financial shareholders. Over the coming 36 months, Bomi s management again aims to invest strongly in external growth. For this reason, the company has planned two capital increases: 1) 5.00mn capital increase with rights issue Quaestio Capital Management and First Capital have already expressed their commitment to subscribe their rights for 3.00mn and 0.50mn, respectively, at a maximum issue price of 3.00 per share. BPER Banca, on the other hand, has underwritten the remaining part of the capital increase, thereby guaranteeing its success; 2) The EGM could approve a 12.00mn capital increase within five years and the introduction, after the migration to the regulated market, of the Loyalty Shares, which imply double voting rights for long-term shareholders (with a holding period of at least 24 months); Our new estimates do not take into account any external growth contribution. On the other hand, we lowered the Net Financial Position and increase the number of shares outstanding, considering the 5.00mn capital increase as successfully completed. Since the new shares should be issued within the price range, we conservatively considered an issuance of 1.7mn new shares or a capital increase price of For this reason, we increased EPS18E by only 9.00%, while we reduced EPS19E and EPS20E by 1.00%, since the capital increase dilution counterbalanced our increase in Net Income estimates. Table 3: New Forecasts thousand FY18E old FY18E new % FY19E old FY19E new % FY120E old FY20E new % Total Revenues % % % EBITDA % % % EBITDA margin% 10.1% 10.3% 11.2% 10.9% 11.2% 10.9% EBIT % % % EBIT margin% 6.2% 6.5% 7.2% 7.1% 7.2% 7.1% Net Income % % % Net Income margin% 2.4% 2.8% 3.3% 3.4% 3.6% 3.5% Bomi's Net Income % % % Bomi's Net Income margin% 2.3% 2.7% 3.3% 3.4% 3.4% 3.5% EPS % % % CAPEX & M&A % % % Net Financial Position % % % Source: KT&Partners elaboration 1 The BRL-EUR exchange rate applied for FY18, FY19 and FY20 is equal to 4.0, 4.1 and 4.18 respectively. April 16,

4 Valuation Basis Based on our estimates, we have carried out our valuation on a multiple and DCF analysis basis and have taken the average price provided by these two models. This has led to a fair value of 4.76 per share. Our fair value takes the average of the following methods: P/E multiple, with a 10% liquidity discount, which returns a value of 4.06 per share. DCF analysis based on WACC of 8.5% and 1.5% perpetual growth, which returns a value of 5.47 per share. Multiples Valuation To value Bomi, we identified a series of comparables (see Appendix). We have chosen our peers taking into consideration the business activity and the services provided. Thanks to the Brazilian acquisition, we have started to value Bomi on a P/E basis in order to better capture the company s earning power. However, we should note that the selected companies are quite different in terms of revenue size. For this reason, we have applied a 10% size and liquidity discount to the 2018 and 2019 P/E peers average. Table 4: Multiples Valuation Multiples valuation P/E liquidity/size discount 10% 10% P/E post discount EPS Price Fair Value 4.06 Source: Company data, KT&Partners estimates April 16,

5 Table 5: Peer Group Valuation Table 2018 Multiples Company Name Exchange Market Cap Source: KT&Partners elaboration on FactSet data Table 6: Peer Group Valuation Table 2019 Multiples EV/SALES 2018 EV/EBITDA 2018 EV/EBIT 2018 P/E 2018 DSV A/S OMX Copenhagen 11, Kuehne & Nagel International AG SIX Swiss 15, United Parcel Service, Inc. Class B NYSE 74, Deutsche Post AG XETRA 44, Owens & Minor, Inc. NYSE UDG Healthcare Plc London 2, Average peer group 24, Median peer group 13, BOMI Italia S.p.A. Milan Company Name Exchange Market Cap DSV A/S OMX Copenhagen 11, Kuehne & Nagel International AG SIX Swiss 15, United Parcel Service, Inc. Class B NYSE 74, Deutsche Post AG XETRA 44, Owens & Minor, Inc. NYSE UDG Healthcare Plc London 2, Average peer group 24, Median peer group 13, BOMI Italia S.p.A. Milan Source: KT&Partners elaboration on FactSet data EV/SALES 2019 EV/EBITDA 2019 EV/EBIT 2019 P/E 2019 April 16,

6 DCF Valuation We believe that DCF analysis is an interesting way, in addition to our multiples valuation, to highlight the company s positive and visible cash flow generation for the forthcoming years. Our DCF analysis is based on an 8.5% WACC (riskfree rate 1.8%, market risk premium of 7.14% based on June 2017 estimates by Damodaran, beta of 1.07, size premium of 2.0% implying a cost of equity of 11.44%, and a marginal cost of debt of 5.5%). We set a terminal growth rate of 1.5% and an adjusted (after 5.00mn capital increase) 2017 Net Financial Position of 20.50mn. This results in an equity value of 92.56mn or 5.47 per share. Table 7: Cash Flow Estimates million 2018E 2019E 2020E 2021E EBIT Taxes D&A Change in Net Working Capital Net Operating Cash Flow Capex Nonrecurring items FCFO g 1.5% Wacc 8.5% FCFO (discounted) Discounted Cumulated FCFO TV TV (discounted) Enterprise Value NFP FY2017 Adj Equity Value Current number of shares Value per share ( ) 5.47 Source: KT&Partners elaborations April 16,

7 Appendix Peer Description DSV A/S provides transport and logistics solutions. It operates through the following business segments: Air and Sea, Road, and Solutions. The Air and Sea segment specializes in the handling of air and sea freight through a global network. The Road segment offers road freight services including full and part loads, temperature-controlled transport, and other specialized services across Europe. The Solutions segment covers specialized logistics solutions such as freight management, customs clearance, warehousing and distribution, information management, and e-business support. The company was founded on 13 July 1976 and has its headquarters in Hedehusene, Denmark. Kühne & Nagel International AG is engaged in the provision of logistic services. It also offers strategic solutions such as hotel logistics and emergency and relief logistics. It operates through the following segments: Seafreight, Airfreight, Road and Rail Logistics, Contract Logistics, Real Estate, and Insurance Brokers. The company was founded by August Kühne and Friedrich Nagel in 1890 and has its headquarters in Schindellegi, Switzerland. United Parcel Service, Inc. (UPS) is a logistics company which provides global package delivery and supply chain management services. It offers logistics services to the global market, including: transportation; distribution; forwarding; ground, ocean and airfreight; brokerage; and financing. The company operates its business through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. UPS was founded by James E. Casey and Claude Ryan on 28 August 1907 and has its headquarters in Atlanta, GA. Deutsche Post AG provides mail and logistics services. It operates through the following business segments: Mail, Express, Global Forwarding Freight, and Supply Chain. The Mail segment, which specializes in dialogue marketing, nationwide press distribution services, and all the electronic services associated with mail delivery, provides domestic and international mail and parcels. The Express segment offers courier and express services to business customers. The Global Forwarding Freight segment handles the carriage of goods by rail, road, air and sea. The Supply Chain segment provides warehousing, managed transport, and value-added services at every link in the supply chain for customers in a variety of industries, including life sciences and healthcare. The Retail and Life Sciences & Healthcare sectors accounted for the majority of the Supply Chain gains. In 2014, the Supply Chain division revenues amounted to 14.7bn and the contribution of the Life Sciences & Healthcare sector was about 2.9bn (20%). The company was founded in 1995 and has its headquarters in Bonn, Germany. Owens & Minor, Inc. is a healthcare logistics company that connects the world of medical products to the point of care. It provides services to the manufacturers of healthcare products, supplies, and devices in the United States and Europe. The company operates through two segments: Domestic and International. The Domestic segment provides all services in the United States relating to medical supply, while the logistics company serves healthcare providers and manufacturers. The International segment, comprised of the Movianto Group, provides third-party logistics for the pharmaceutical, biotechnology, and medical device services in the European market. Owens & Minor was founded by Otho O. Owens and G. Gilmer Minor in 1882 and has its headquarters in Mechanicsville, VA. April 16,

8 UDG Healthcare Plc provides commercialization solutions to international healthcare companies. The company operates through three segments: Supply Chain services, Sharp Packaging services and Ashfield Commercial and Medical services. The Supply Chain services segment combines all the group's healthcare logistics-based businesses. The Sharp Packaging services segment provides outsourced commercial and clinical trial packaging services to healthcare companies. The Ashfield Commercial and Medical services segment provides sales and marketing services, healthcare communications, event management, medical affairs, and regulatory services to healthcare manufacturers. The company was founded in 1948 and has its headquarters in Dublin, Ireland. April 16,

9 DISCLAIMER THIS DOCUMENT WAS PREPARED BY KT&PARTNERS S.R.L., WITH REGISTERED OFFICE AT VIA DELLA POSTA 10, MILAN, ITALY, MILAN COMPANY REGISTER NO , SPECIALIZING IN FINANCIAL RESEARCH AND ANALYSIS (HEREINAFTER, KT&PARTNERS ). KT&PARTNERS PREPARED THIS DOCUMENT ON BEHALF OF BOMI ITALIA SPA ACCORDING TO AN AGREEMENT ENTERED WITH THE SAME AND ON THE BASIS OF THE DATA AND PUBLIC INFORMATION PROVIDED BY THE SAME OR DERIVED FROM SOURCES DEEMED SERIOUS AND RELIABLE ON THE FINANCIAL MARKET BUT WHOSE ABSOLUTE TRUSTWORTHINESS, COMPLETENESS, AND ACCURACY CANNOT BE GUARANTEED. THIS DOCUMENT IS A SOURCE OF INFORMATION ONLY, AND IS NOT PART OF, AND IN NO WAY MUST IT BE CONSIDERED, AN OFFER TO SELL, SUBSCRIBE OR TRADE, OR A SOLICITATION TO PURCHASE, SUBSCRIBE OR TRADE, FINANCIAL INSTRUMENTS/PRODUCTS, OR IN GENERAL TO INVEST, NOR MUST IT BE CONSIDERED ANY FORM OF CONSULTING FOR AN INVESTMENT IN FINANCIAL INSTRUMENTS. THE INFORMATION PROVIDED IN THIS DOCUMENT MUST NOT BE UNDERSTOOD AS A REQUEST OR SUGGESTION TO CONDUCT OR CARRY OUT A SPECIFIC TRANSACTION. EACH INVESTOR MUST FORM HIS/HER OWN OPINION BASED EXCLUSIVELY ON HIS/HER ASSESSMENT OF THE ADVISABILITY OF INVESTING. ANY INVESTMENT DECISION MADE ON THE BASIS OF THE INFORMATION AND ANALYSES IN THIS DOCUMENT IS THE EXCLUSIVE RESPONSIBILITY OF THE RECIPIENTS OF THIS DOCUMENT, WHO MUST CONSIDER THIS DOCUMENT MERELY AS A SOURCE OF INFORMATION AND ANALYSIS TO SUPPORT SUCH DECISION. ANY OPINIONS, FORECAST, OR ESTIMATES CONTAINED HEREIN CONSTITUTE A JUDGEMENT AS AT THE DATE OF THIS DOCUMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUTURE RESULTS OF THE COMPANY AND/OR ANY FUTURE EVENTS WILL BE CONSISTENT WITH ANY OF SUCH OPINIONS, FORECAST OR ESTIMATES. KT&PARTNERS MAKES NO EXPLICIT OR IMPLICIT GUARANTEE WITH RESPECT TO PERFORMANCE OR THE OUTCOME OF ANY INVESTMENT OR PROJECTIONS MADE. THEREFORE, KT&PARTNERS, ITS REPRESENTATIVES AND/OR EMPLOYEES WILL NOT BE LIABLE FOR ANY EFFECT DERIVING FROM THE USE OF THIS DOCUMENT, AND HEREBY DECLINE ALL LIABILITY FOR ANY DIRECT OR INDIRECT DAMAGES, FINANCIAL OR OTHERWISE, DERIVING FROM ANY USE OF THE INFORMATION IT CONTAINS. KT&PARTNERS AIMS TO PROVIDE CONTINUOUS COVERAGE OF THE COMPANY IN CONJUNCTION WITH ANY EXCEPTIONAL EVENT THAT OCCURS AFFECTING THE ISSUER S SPHERE OF OPERATIONS AND IN ANY CASE AT LEAST TWICE PER YEAR. April 16,

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