THE ITALIAN PRIVATE EQUITY AND VENTURE CAPITAL MARKET

THE ITALIAN PRIVATE EQUITY AND VENTURE CAPITAL MARKET

Evolution of active players by activity 3 2016 2017 106 105 71 71 16 21 Number of players that raised funds on the market Number of players that invested Number of players that divested

Active players by investment stage 4 2016 2017 61 56 31 International players 26 International players 34 30 30 Italian players 30 Italian players 24 23 12 8 8 7 7 3 Buy out Expansion Early stage Replacement Turnaround Infrastructure

Portfolio at December 31 st 2017 5 14,000 25,000 11,000 Portfolio at cost - domestic players (Euro Mln) Portfolio at cost - international players (Euro Mln) Total portfolio at cost (Euro Mln)

Composition of portfolio at December 31 st 2017 6 Italy Abroad Private players Regional/public/institutional players 1,292 1,292 61 398 1,231 894 Number of companies Number of companies

Evolution of annual fundraising activity (Euro Mln) 7 6,263 4,047 2,833 1,477 1,714 2013 2014 2015 2016 2017 Note: market fundraising below the white line. Institutional players fundraising (CDP Equity, F2i, Fondo Italiano di Investimento, FSI, Invitalia Ventures, QuattroR) is included in the graph

New funds raised on the market (Euro Mln) 8 Private players fundraising Insitutional players fundraising 5,310 468 165 458 615 733 2,020 15 1,298 920 2013 2014 2015 2016 2017

Fundraising activity by source (Euro Mln) in 2017 9 7,338 1,075 5,310 33 920 Captive fundraising Market fundraising - Private players Market fundraising - Institutional players Amount invested by international players based in Italy

Private players fundraising by geographical distribution 10 Italy Abroad 24% 44% 40% 37% 28% 76% 56% 60% 63% 72% 2013 2014 2015 2016 2017 Note: statistics based on the available data for 79% of private players fundraising

Distribution by source of new funds raised by private investors 11 2016 2017 27.0% 21.2% 23.2% 17.5% 13.7% 12.1% 12.3% 10.6% 14.4% 9.1% 7.1% 7.1% 7.1% 2.3% 2.8% 4.5% 2.8% 1.8% 0.5% 2.9% Individual investors and family office Private funds of Public/inst. funds players and sovereign funds Banks Pension funds Endowm. and found. Other financial players Corporate investors Insurance companies Other Note: statistics based on the available data for 79% of private players fundraising

Geographical breakdown of funds raised by private investors in 2017 12 Abroad Italy 51% 60% 38% 50% 81% 90% 79% 93% 81% 95% 49% 40% 62% 50% 19% 10% 21% 7% 19% 5% Individual investors and family office Private funds of funds Public/inst. players and sovereign funds Banks Pension funds Endowm. and found. Other financial players Corporate investors Insurance companies Other Note: statistics based on the available data for 79% of private players fundraising

Private players fundraising expected allocation 13 3% 2% 2% 2% 5% 7% 32% 67% 68% 63% 54% Other Buy out 54% Expansion 23% Early stage 29% 28% 23% 18% 12% 2% 6% 2013 2014 2015 2016 2017

Evolution of investment activity 14 Numero Società Ammontare (Euro Mln) Number Companies Amount (Euro Mln) Op. Int. internazionali players without senza italian base in offices Italia Op. Int. internazionali players with con Italian base offices in Italia Op. Domestic domestici players 8,191 4,620 4,938 3,430 3,528 368 311 342 322 311 281 248 272 245 250 2013 2014 2015 2016 2017

Investment activity by stage in 2017 15 Amount (Euro Mln) Number 3,444 133 90 45 24 659 9 10 338 253 133 111 Buy out Infrastructure Expansion Replacement Early stage Turnaround

Investment distribution by type of player in 2017 16 Amount (Euro Mln) Number 126 3,113 74 64 47 1,146 639 40 International players Private generalist domestic players Regional/public/institutional domestic players Private venture capital domestic players

Average invested amount by stage in 2017 17 Average amount (Euro Mln) Average amount excluding large and mega deals (Euro Mln)* 38.3 24.7 28.1 27.5 20.0 15.9 11.0 11.1 7.5 1.0 Total Buy out Replacement Infrastructure Turnaround Expansion Early stage * Investments with an amount included between 150 and 300 Euro Mln (large deal) or more than 300 Euro Mln (mega deal)

Invested amount by deal size 18 Amount of small and medium deals (Euro Mln) Amount of large and mega deals (Euro Mln)* 6,081 2,231 1,598 1,707 1,518 1,723 2,010 2,389 2,110 3,340 2013 2014 2015 2016 2017 Note:statistics based on companies financed (in case of syndicated deals the amount considered is the sum of all private equity investments in that company) * Investments with an amount included between 150 and 300 Euro Mln (large deal) or more than 300 Euro Mln (mega deal)

Early stage investments 19 Number Companies Amount (Euro Mln) 144 122 128 133 133 101 100 104 99 69 81 89 87 74 42 2013 2014 2015 2016 2017

Distribution of early stage investments by type of player (number) 20 48% 29% 15% 8% International players Regional/public/institutional domestic players Private generalist domestic players Private venture capital domestic players

Expansion investments 21 Number Companies Amount (Euro Mln) 1,113 664 710 306 338 129 108 89 78 76 66 67 52 45 33 2013 2014 2015 2016 2017

Distribution of expansion investments by type of player (number) 22 45% 29% 24% 2% Private venture capital domestic players International players Regional/public/institutional domestic players Private generalist domestic players

Turnaround investments 23 Number Companies Amount (Euro Mln) 111 97 64 66 5 4 3 8 8 4 4 3 3 10 8 2013 2014 2015 2016 2017

Replacement investments 24 Number Companies Amount (Euro Mln) 597 494 281 253 17 13 5 4 28 33 32 14 10 9 9 2013 2014 2015 2016 2017

Infrastructure investments 25 Number Companies Amount (Euro Mln) 942 659 527 325 183 25 17 26 17 8 8 12 12 24 20 2013 2014 2015 2016 2017

Buy out investments 26 Number Companies Amount (Euro Mln) 5,772 3,154 3,444 2,087 2,064 48 39 83 62 99 74 98 81 90 81 2013 2014 2015 2016 2017

Distribution of buy out investments by size (number) 27 2015 2016 2017 67% 47% 42% 39% 50% 27% 14% 6% 8% Small (0-15 Euro Mln) Medium (15-150 Euro Mln) Large and Mega (>150 Euro Mln)

Distribution of buy out investments by type of player (number) 28 59% 40% 1% Regional/public/institutional domestic players International players Private generalist domestic players

Evolution of initial and follow on investments by number 29 Initial Follow on* 61% 61% 63% 58% 60% 39% 39% 37% 42% 40% 2013 2014 2015 2016 2017 * secondary buy out included

Geographical distribution of investments by number in 2017 30 (-9%) (+53%) 8% Italy 92% 68% (+14%) (-13%) 15% 9% South and Islands Centre North Europe and rest of the world Note: percentage change on 2016 data in brackets

Geographical distribution of investments by amount in 2017 31 Italy 97% (-40%) (-40%) (-22%) 3% 87% (-33%) (-68%) 9% 1% South and Islands Centre North Europe and rest of the world Note: percentage change on 2016 data in brackets

Regional distribution of investments by number in 2017 32 114 34 28 20 19 13 13 12 7 6 5 4 3 3 2 2 Lombardia Emilia Romagna Veneto Toscana Lazio Campania Piemonte Friuli Venezia Giulia Sardegna Marche Liguria Trentino Alto Adige Abruzzo Umbria Calabria Puglia

Distribution of investments by sector in 2017 (number) 33 51 49 35 28 20 20 17 16 15 15 11 11 10 4 3 2 4

% of investments in high-tech companies by number and amount 34 Amount Number 2013 26% 42% 2014 23% 40% 2015 12% 35% 2016 17% 30% 2017 8% 25%

Distribution of investments in high-tech companies by sector in 2017 (number) 35 ICT (communications, computer and electronics) 23 Biotech Healthcare 14 14 Financial and insurance activities 9 Chemicals and materials 7 Business products and services 4 Real estate Energy and environment Consumer related services 2 2 2 Manufacturing - Other Transportation 1 1

Distribution of investments by target companies employees in 2017 (number) 36 SME 80% 6% 6% 1% 8% 8% 32% 39% 0-19 20-99 100-199 200-249 250-499 500-999 >1,000

Distribution of investments by target companies turnover (Euro Mln) in 2017 37 SME 78% 9% 6% 7% 12% 12% 12% 42% 0-2 2-10 10-30 30-50 50-100 100-250 >250

Evolution of divestment activity 38 Number Companies Amount (Euro Mln) 3,656 3,752 2,903 2,632 1,933 141 174 178 145 202 119 147 153 113 160 2013 2014 2015 2016 2017

Distribution of divestments by way out (amount) 39 2016 2017 55% 34% 29% 29% 24% 13% 7% 2% 2% 3% 1% 2% Trade sale IPO/post IPO/ sale of quoted equity/ SPAC Sale to PE/VC Management or owner buyback/other Sale to financial institutions/private individuals/family offices Write off

Distribution of divestments by way out (number) 40 2016 2017 37% 31% 29% 24% 21% 15% 12% 3% 7% 7% 8% 6% Management or owner buyback/other Trade sale Sale to PE/VC IPO/post IPO/ sale of quoted equity/ SPAC Sale to financial institutions/private individuals/family offices Write off

Distribution of divestments by tipe of player in 2017 (number) 41 61% 19% 16% 4% Private venture capital domestic players International players Regional/public/institutional domestic players Private generalist domestic players

Distribution of divestments by original investment in 2017 (number) 42 43% 35% 16% 2% 4% Turnaround Replacement Early stage Buy out Expansion

THE ITALIAN PRIVATE DEBT MARKET

Evolution of active players by activity 44 2016 2017 18 17 9 6 Number of players that raised funds on the market Number of players that invested

Characteristics of private debt players 45 33% 33% 67% 67% Only private debt Private equity and private debt Domestic International

Evolution of fundraising activity 46 574 383 315 292 100 2013 2014 2015 2016 2017

Distribution by source of new funds raised 47 52.3% 2016 2017 26.7% 24.0% 22.3% 14.2% 16.0% 10.2% 0.6% 4.4% 4.8% 4.0% 3.6% 2.2% 0.6% 3.7% 5.5% 1.4% 1.0% 0.5% 2.0% Banks Institutional funds of funds Insurance companies Private individuals Pension funds Private funds of funds Other financial players Family offices Endowm. and found. Corporate investors Other

Evolution of investment activity 48 Number Companies Amount (Euro Mln) 612 476 276 150 29 25 58 42 84 54 104 83 2014 2015 2016 2017

Investment distribution by type of player in 2017 49 Distribution by invested amount Distribution by number of investments 35% 45% 55% 65% Domestic International Domestic International Note: statistics based on the available data for 98% of investments

Characteristics of investment activity 50 Distribution of investments by type of instrument Distribution of bonds by repayment type 19% 32% 63% 5% 81% Loans Hybrid instruments Bonds Amortizing Bullet Note: statistics based on available data for 88% of investments

Distribution of investments by target companies turnover 51 64% 60% 2015 2016 2017 46% 46% 27% 23% 13% 13% 8% 0-5 Euro Mln 5-10 Euro Mln >10 Euro Mln Note: statistics based on available data for 98% of investments

Geographical distribution of investments by number in 2017 52 (+17%) 67% (+29%) (+71%) 21% 12% South and Islands Centre North Note: percentage change on 2016 data in brackets

Geographical distribution of investments by amount in 2017 53 (+53%) 82% (-23%) (-32%) 13% 5% South and Islands Centre North Note: percentage change on 2016 data in brackets. Statistics based on available data for 98% of investments in 2017, and 99% in 2016

Regional distribution of investments by number in 2017 54 24 14 11 9 7 6 6 6 5 4 3 3 3 2 1 Lombardia Trentino Alto Adige Veneto Toscana Friuli Venezia Giulia Campania Marche Piemonte Emilia Romagna Umbria Lazio Liguria Puglia Sicilia Basilicata

Distribution of investments by sector in 2017 (number) 55 35 14 13 7 6 5 5 4 4 3 2 2 2 1 1

Distribution of investments by target companies employees in 2017 (number) 56 SME 60% 21% 11% 10% 5% 8% 33% 12% 0-19 20-99 100-199 200-249 250-499 500-999 >1,000

Distribution of investments by target company turnover (Euro Mln) in 2017 (number) 57 SME 49% 13% 19% 19% 10% 11% 20% 8% 0-2 2-10 10-30 30-50 50-100 100-250 >250

Distribution of private equity backed targets by companies turnover (Euro Mln) in 2017 (number) 58 Private equity backed companies Non private equity backed companies 20 16 11 12 7 95% 9 69% 58% 8 82% 78% 38% 100% 31% 42% 63% 18% 22% 5% 0-2 2-10 10-30 30-50 50-100 100-250 >250 Note: the numbers above the graph represent the number of target companies for each turnover category