AIM IT Liquidity Analysis 2018 04 05

ValueTrack | Thematic Report | 05 April 2018
AIM ITALIA
VALUETRACK
Marco Greco & Research Team
Little AIM grows up

Tel: +39 02 80886654
info@value-track.com
A long way to go, but major improvements achieved FTSE AIM Italia Index 9,366
AIM Italia, the multilateral trading facility devoted to Italian SMEs Mkt Cap (€bn) 6.3
with high growth potential, recorded major growth in 2017 in terms
of number of stocks, size and liquidity, but a further effort is needed
in order to make it an entirely efficient market place, able to support
TOP 10 AIM IT. STOCKS BY FREE FLOAT MKT CAP (€mn, 2017YE)
growth of Corporate Italy in years ahead.
Stock universe, average size of issuers, free float and information
support (equity research coverage, corporate access) are the key
drivers to activate; SPACs and PIRs the specific tools to exploit.
Growth of number of stocks on right track, approaching

inflection point
AIM Italia seems to have eventually entered a steady and visible path of
growth with ca. 100 stocks listed as of now and an aggregate market
capitalization in excess of €6.3bn. Liquidity as well dramatically improved
Source: Borsa Italiana, Value Track analysis (2017 Year End)
in 2016, with ca. €2bn total turnover (vs. €310mn as of 2016) and 86% of
actively traded days / listing days (vs. 62% as of 2016). As the IPO pipeline
BOTTOM 10 AIM IT. STOCKS BY FREE FLOAT MKT CAP (€mn, 2017YE)
is poised to remain robust in the next few months, supported by SPAC effect
and by PIR/fiscal incentives, we expect more listed stocks to further support
the overall liquidity. Indeed, benchmarking with foreign MTFs we have
noticed that once stock universe widens, trading volumes and turnover
velocity grow more than proportionally.
After recent acceleration AIM Italia compares well in

Europe
All the major European MTFs specialised on SMEs have recorded a buoyant
2017 and most of them have recently undertaken a process of re-launch
and/or reorganization. AIM Italia after its 2017 “jump” now compares well Source: Borsa Italiana, Value Track analysis (2017 Year End)
vs. Spain, Germany and Nordics (as a single market). It still lags behind the
French Euronext and especially AIM UK, that remains a benchmark for all.
AIM IT. KEY STATISTICS 2015YE 2016YE 2017YE
Market Capitalisation (€bn) 2.9 2.9 5.6

Does MTA make a real difference to SMEs? Not so clear
Generally speaking, stocks belonging to AIM Italia suffer because of quite Traded Volumes (€mn) 761 310 1,954
low traded volumes, often below Institutional Investors' threshold. TV Velocity (%) 26.0% 10.8% 35.0%
Yet, from the analysis of carefully selected case studies (LU-VE,
Tecnoinvestimenti, IndelB, just to make a few examples) there is no Average Free Float (%) 33.5% 35.4% 39.4%
evidence that this is specific AIM issue and that stocks below €200m Days with trades (% Total) 71.8% 62.4% 85.6%
market capitalisation would enjoy higher liquidity by moving / listing on
"plain vanilla" MTA. Number of stocks (#) 74 77 95
On the other hand, larger “names” could find relatively more useful listing Source: Borsa Italiana, Value Track analysis (Year End)
on MTA’s STAR segment, as it is perceived as a proxy of "premium/quality"
and allows higher visibility and a wider pool of potential investors.
ValueTrack | www.value-track.com | NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA
AIM Italia | Thematic Report | 05 April 2018 | Marco Greco & Research Team
VALUETRACK
Table of Contents
The Liquidity factor 3
AIM vs MTA Mid and Small Cap 5
- Overview 6
- Case Studies 9
- The trading angle 13
AIM Italia vs other European MTFs 18
Appendix: AIM stocks key data 23
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA 2
VALUETRACK
The liquidity factor

AIM Italia: a grey hair startup
AIM Italia market was re-launched and rationalized in March 2012 -by merging the "old" AIM market
and the MAC segment, in an new attempt to create a market specialised for small-medium enterprises.
In the past the Expandi market (1978-2008) and the MAC segment (2007-2012) were expected to
become a faster and more affordable way to listing for Italian SMEs, yet the outcomes were below
expectations.
In 2012 Borsa Italiana re-launched this segment as a MTF (Multilateral Trading Facility), with an
increased commitment to provide a more appealing framework for the Italian SME: a more balanced
regulatory approach, a relatively fast, cheap and flexible admission process and lighter requirements
for both admission and continuing obligations.
Hence, capitalizing also on the AIM UK experience, the listing process and the post-listing
requirements were simplified and the role of the Nomad (Nominated Adviser) introduced.
Here below we take a picture of the AIM situation as of end of 2017, i.e. five full years after its re-
launch, in order to assess its liquidity, as liquidity is one of the key success factors of trading venues.
Trends over 2013-2017

In the latest five years AIM Italia has undertaken a clear trend of expansion, approaching in early 2018
the target of 100 listed stocks and a market capitalization in excess of €6bn, i.e. a magnitude that is
comparable to other European markets dedicated to SMEs.
The table below reports a few key indicators relative to AIM Italia market as of year end from 2013.
We note how almost all of them have witnessed a visible improvement, albeit the whole Italian equity
market (and AIM segment in particular) has suffered in year 2016 in terms of volumes, because of the
increased uncertainties on the financial markets and the consequent cautious and selective approach
of investors.
AIM Italia at a glance 2013-2017

2013 2014 2015 2016 2017
N. stocks (Year End) 36 57 74 77 95
Mkt Cap (€mn) 1,183 2,052 2,925 2,873 5,579
Turnover (i.e. Traded Volumes, €mn) 115 325 761 310 1,954
Volatility (%) 64% 35% 34% 39% 43%

Volatility vs. MTA (bp) 305 16 21 21 130
Days with trade/total (%, avg) 66% 66% 72% 62% 86%
Turnover (TV) Velocity (weighted avg., %) 41% 28% 34% 12% 49%
TV Velocity (median, %) 26% 17% 23% 12% 47%
Avg. free float (%, avg.) 32% 30% 33% 35% 39%
Avg. free float (%, median) 23% 26% 27% 26% 30%
Free Float TV Velocity (weighted avg.) 111% 100% 104% 35% 104%
Free Float TV Velocity (median) 94% 77% 97% 42% 130%
Source: Value Track analysis on Borsa Italiana figures
VALUETRACK
In summary we see three take-away:

® Average free float of AIM stocks is now close to 40% (based on a simple average of all
stocks or 31% on a weighted average and excluding SPACs before the business combination) and
is therefore well above the 10% free float minimum set by the AIM listing requirements and above
the 25% set for MTA;
® Turnover velocity (ratio between annual the value of traded volumes, adjusted for days of
listing, and market capitalization) has also being steadily improving - with the exception of year
2016 - and currently stands around 50%. Here it is worth noticing that the 2013 figure is
inflated by a few IPOs carried in the last days of December, as the relative trading volumes have
been adjusted by annualising their volumes: without the IPOs of end-December the market
turnover velocity would have been 28% in 2013. We estimate that the impact of the year-end-
IPOs in 2017 was much smaller, but still in the range of 800bp, leading to a market turnover
velocity of ca. 41%;
® Number of stocks has almost tripled and the market is now relatively wide and less affected
by the flow of new listings. The volume represented by the new listings in 2017 was 13% of total
AIM turnover in the year, compared to 45% in 2013: now there is a secondary market.
IPOs turnover (i.e. value of traded volumes) as a % of total AIM Italia

2013 2014 2015 2016 2017
# new listings 15 22 21 12 24
TV new listings in the year (€mn) 52 123 197 38 262
AIM Italia total TV (€mn) 115 325 761 310 1,954
IPOs TV as % of mkt 45% 38% 26% 12% 13%
Source: Value Track analysis on Borsa Italiana figures
In our view, the improvements witnessed by the AIM market in Italy in terms of liquidity are probably
the combined effect of:
® Favourable liquidity picture of financial markets;
® Worsened credit "attitude" of the Italian traditional banking sector and of a few troublesome
domestic banks in particular;
® Fiscal benefits introduced for institutional and retail investors as well as for corporates, out of
which “PIR” (Piani Individuali di Risparmio, similar to UK’s ISAs);
® Improved macro outlook.
Yet, leaving aside for the time being the drivers behind these trends, we would like to understand
where AIM Italia currently stands in this respect relative to the main stock market (MTA) and how it
compares to the other European MTFs (Multilateral Trading Facilities).
VALUETRACK
AIM Italia vs. MTA Mid and Small Cap

AIM Italia is much more focussed on smaller stocks (below €100mn market capitalization) than
MTA Small and Mid Caps or STAR and this explains its lower average turnover (i.e. value of traded
volumes). Yet, if one focuses on stocks with the same size there is no clear evidence that MTA listing
in itself offers clear benefits in terms of liquidity and turnover velocity ratios offer a mixed scenario,
with one take-away: average free float needs to further increase.
As AIM Italia universe is still relatively small and "young" and it is hard to find clear correlations,
we have cross checked by looking at few case studies. Eventually, we have looked at stocks from the
angle of the investor willing to build a €1mn position on AIM Italia stocks. Here the picture is not
satisfactory yet, with major room for improvement in free float and /or turnover velocity,
depending on the cluster considered. In particular we would appreciate the universe of AIM Italia
stocks to keep growing in the size bracket above the €50mn.
It is reasonable to expect that the liquidity offered by the main regulated market (in the SMEs
segments) is richer than the liquidity enjoyed by its MTF, given the combination of larger market
capitalization (requirement of minimum €40mn for regulated market, between €40mn and €1bn for
STAR, none for AIM Italia) and higher requirements in terms of free float (minimum 25% for MTA,
35% for the STAR segment and 10% for AIM Italia). The distribution of stocks by market capitalization
in the different SMEs segments - AIM Italia, MTA Small and Mid Caps and MTA STAR - is different.
Distribution of stocks by market cap (€mn) in different segments of the Italian market (2017 Year End)
100% 4
7
80%
19 101
46
60%
40%
34
54
15
17
20%
4
35
8
0%
AIM Italy MTA (Small&Mid Caps) MTA STAR
0-50 50-100 100-200 200+
Source: Value Track analysis on Borsa Italiana figures as of 2017 year end
Yet, the right question for investors and corporates is the following: "Given a certain size of business -
here assumed as its market cap - does the market place of listing make the difference and how much is
such a difference, in terms of stock liquidity?".
We investigate this issue
1. on an aggregated basis, comparing stocks in four different groups based on their market
capitalization (see chart above);
2. by focussing on few "case studies", given the limited universe and the high number of "special
situations";
VALUETRACK
3. lastly, entering the shoes of a small and midcap investor and questioning if AIM Italia really offers
at this stage an investable universe and how it compares to MTA (Small and Mid Caps).
AIM vs MTA Small and Mid Caps vs MTA STAR

# Market Cap FF Market Cap Days w/trade
Companies (€mn) (€mn) Free Float (%) Daily TV (€mn) (%) TV Vel. (%)
AIM (*) 84 4,504 1,384 30.7% 9 84.9% 51.3%

MTA STAR 73 41,962 20,155 48.0% 88 99.9% 53.1%
MTA Small Cap 127 28,198 16,203 57.5% 59 99.0% 53.1%
MTA Mid Cap 60 102,701 42,538 41.4% 190 100.0% 46.9%
Source: Value Track. (*) Excludes SPACs pre business combination and suspended stocks
Overview
By comparing stocks that are similar in terms of market cap, notwithstanding their segment of listing
(MTA Mid and Small Caps, MTA STAR, AIM Italia), we get the following indications:
Mkt Cap below €50mn. AIM stocks show limited Free Float but higher TV velocity
In the smaller companies' segment there is a group of MTA Small Caps that have a market cap below
€50mn and below the minimum required in MTA, with most of free float market caps (FF mkt cap)
below €30mn. Having said that, the AIM stocks of this size compare badly due to the lower average
free float - 30% vs ca 50% of MTA Small Caps: this is partially offset by a higher TV Velocity (well
above 200% for FF), but they still lag behind on annual TV per stock (€17mn vs €23mn in MTA
Small).
In this segment an increase in AIM stocks' free float seems a pre-requisite to get to a satisfactory
liquidity picture.
FF mkt cap of stocks with market cap below €50mn
50
45
40
35
30
(€mn)
25
20
15
10
5
0
DOMINION HOSTING …
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NOTORIOUS PICTURES
ENERTRONICA
EUKEDOS
CALEFFI
GEQUITY
DIGITOUCH
BOMI ITALIA
EUROTECH
LVENTURE GROUP
MAILUP
TPS
COVER 50
CASTA DIVA GROUP
FIDIA
CAD IT
DIGITAL MAGICS
ACOTEL GROUP
CALEIDO GROUP
LUCISANO MEDIA GROUP
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MONDO TV FRANCE
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CHL
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MTA AIM
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Mkt Cap in the €50mn-€100mn range. AIM stocks similar to MTA’s ones
In the €50-100mn market cap range, the AIM segment offers a similar number of stocks compared to
MTA and these have on average similar liquidity potentials, i.e. aligned FF market caps. Yet, the MTA
stocks have a higher turnover velocity (FF TV Velocity above 250%), thanks to a few highly traded
names. Here we do not see any structural gap of AIM stocks and we can find stocks from both
segments among the most traded ones.
FF mkt cap of stocks with market cap €50-100mn
50
45
40
35
30
(€mn)
25
20
15
10
MTA AIM
Mkt Cap in the €50mn-€100mn range. Only seven AIM stocks

The segment €100-200mn is still under-represented in AIM with only seven stocks.
FF mkt cap of stocks with market cap €100-200mn
180
160
140
120
100
(€mn)
80
60
40
20
MTA AIM
VALUETRACK
Here there is clear issue with the very limited free float of the AIM companies in this size bracket: all
but Equita Group have a free float below average - WITT 28%; Masi Agricola, SIT B&T and
Pharmanutra 20-25%; Fintel Energia and Rosetti Marino close to zero.
Leaving aside the names with virtually no trades, still we would point out here a few issues: the lack of
a decent universe; a group of names with free floats below average and a FF TV velocity below
potential (most stocks around 100%, with Equita Group much higher, but with a 2017 figure inflated
by its year-end listing).
Mkt Cap above €200mn. Four AIM stocks with few points in common
In the segment above €200mn market cap there are only four stocks listed in AIM. These are four
different "stories" with no common themes: they operate in different sectors; two companies (BIO ON
and Orser0) were listed at the end of 2014 and 2015 respectively with market caps below €100mn,
while SIT and SMRE were listed more recently with capitalizations already above €200mn at IPO.
This segment is definitely not represented at this stage, but it could gradually become the segment
acting as "incubator" for the main market, provided the Italian stock market proves to manage
successful transfers among the different segments, as it occurs in other countries (e.g. UK).
FF mkt cap of stocks with market cap €200mn+
400
350
300
250
200
(€mn)
150
100
50
MTA AIM
VALUETRACK
Case Studies
Some useful hints on the difference of being listed on AIM Italia vs. MTA Italia in terms of trading
volumes and re-rating / de-rating effect on stock prices can be provided by the analysis of three
specific cases, as follows:
® LU-VE that moved from AIM Italia to MTA Italia listing back in July 2017;
® Tecnoinvestimenti that, as well, moved from AIM Italia to MTA Italia listing back in August
2016;
® IndelB, a relatively small size capitalisation that chose to list on MTA rather than on AIM Italia
back in May 2017.
In other European markets the transfer from SMEs segment to the main regulated market is a
relatively common event and in UK some companies listed on LSE opted for the cancellation of their
ordinary shares from the main market and the admission to trading on AIM (e.g. Volex Plc and Harvey
Nash Group Plc in 2017). On the Italian market there are very few examples of such moves and this
may limit the value of our analysis. Yet it has not provided any clear evidence that the segment of
listing in itself offers a catalyst to stocks' liquidity.
Case # 1: LU-VE Group
Background
® LU-VE Group is the result of a business combination with Industrial Stars of Italy, a SPAC was
listed on AIM Italia MTF back on July 2013;
® The business combination became effective as of July 2015, and we consider this as the “real” IPO
date for LU-VE Group that kept trading on AIM Italia up to 20/07/17 i.e. for 24 months. After
that date the company successfully moved onto MTA Italian Stock Exchange.
Analysis
As the company moved from AIM Italia to MTA Italia Stock Exchange in the middle of 2017, we took
into considerations LU-VE trading statistics for the whole 2017.
LU-VE Group: 2017 Trading Turnover by month
12
10
8
(€mn)
6 Average
LU-VE Turnover (€mn) Average
Source: S&P Capital IQ NB: Blue Columns are for AIM Italia listing, green ones for MTA listing
VALUETRACK
® Total Monthly Trading Turnover. We note that, but for the spike in the month of September
2017, likely driven by newsflow on 1H financial results, actual figures before and after the switch
from AIM to MTA do not seem to materially change. On average, monthly turnover stood in the
€5mn region in 2017;
® Turnover velocity and Stock Performance. By looking at the stock price evolution, we
observe that in 1H 17 the stock performance was positive, likely driven by “PIR-effect” and by the
announcement of the move onto MTA. On the contrary the stock performance was negative after
the move onto MTA, driven by the disappointment related to weak 1H 17 financial figures. As an
effect, Turnover Velocity (calculated on 1 month moving average data points) sky scraped for a
short period in October but soon after got back at pre-MTA levels i.e. ca. 10%-20%.
LU-VE Group: 2017 Stock performance
15 70%
14 60%
13 50%
12 40%
€
11 30%
10 20%
9 10%
8 0%
Jan-17 Feb-17 Apr-17 May-17 Jul-17 Sep-17 Oct-17 Dec-17 Feb-18
LU-VE 21d TV Vel. (RHS, %) LU-VE Share Price (LHS, €) MTA Listing
Source: S&P Capital IQ
Our take on this case

All hints taken into account, we believe that the move from AIM Italia to MTA Italia Stock Exchange
did not represent a sizeable boost to LU-VE Group trading volumes, nor it had an effect on stock
valuation.
Case # 2: Tecnoinvestimenti
Background
® Tecnoinvestimenti is another company that recently succeeded in being listed on MTA Italian
Stock Exchange. Indeed, after being IPOed onto AIM Italia as of August 2014, the company
switched to MTA in May 2016;
® The AIM-MTA move took place coupled with a ca. €50mn capital increase aimed at strengthening
the financial profile of the company and at increasing the free float from 21.1% to 34% thus
improving, hopefully, the appeal of the stock in terms of liquidity.
Analysis
Tecnoinvestimenti moved from AIM Italia to MTA Italia Stock Exchange in the middle of 2016,
therefore we take into account its stock market trading statistics for both 2016 and 2017.
VALUETRACK
® Total Monthly Trading Turnover. On average, monthly turnover stood in the €2mn region
in 2016. By breaking down the two periods, we highlight that in AIM, the stock was trading on
average €1.2mn while in MTA, the average increased to €2.8mn in the last four months of 2016.
In 2017, the average turnover more than doubled with €4.3mn turnover, indicating that the stock
may have benefitted from MTA listing. In particular, we highlight how the stock traded more than
double the volumes in typically weak months, such as June and August.
Tecnoinvestimenti monthly trading turnover

2016 trading turnover 2017 trading turnover
14
14
12 12
10 10
8 8
(€mn)
(€mn)
6 6 Average
4 4
Average
2 2
0 0
TECN Turnover (€mn) Average TECN Turnover (€mn) Average
® Turnover velocity and Stock Performance. Differently from LU-VE, Tecnoinvestimenti benefited
from an upward re-rating on the stock price. Very likely, along with “PIR-effect” and strong 1H 17
financial figures, Tecnoinvestimenti benefitted from a favourable relative valuation if compared to Cerved,
a similar company listed on MTA. At the same time, Turnover Velocity does not seem to have materially
changed with the entrance into MTA and remained in the 20%-40% range for almost the entire period
after the move. A relevant surge happened only in January and February 2018, when the Turnover
Velocity exceeded 100% driven by new equity research reports published by a primary Italian broker.
Tecnoinvestimenti stock performance
8 140%
120%
6
100%
80%
4
€
60%
40%
2
20%
0 0%
Jan-16 Apr-16 Jul-16 Oct-16 Feb-17 May-17 Aug-17 Dec-17
TECN 21d TV Vel. (RHS, %) TECN Share Price (LHS, €) MTA Listing

We believe that the move from AIM Italia to MTA Italia Stock may have had a positive effect on stock
valuation, which converged to those of comparable securities such as Cerved. Excluding the recent spike of
Tecnoinvestimenti stock, we have no definitive evidence that MTA move was a “break-trough” in stock liquidy.
VALUETRACK
Case # 3: IndelB (MTA) vs. WIIT (AIM)
Background
As a third analytical case, we suggest a comparison between IndelB and WIIT, two similar companies
in terms of size and free float, which opted to be listed basically in the same period but in the two
different markets:
® IndelB (€128mn Mkt. Cap. at IPO) listed on MTA in May 2017 with 25.5% free float;
® WIIT (€130mn Mkt. Cap. at IPO) listed on AIM on June 2017 with 24.1% free float.
Analysis
In this case, the different price action can be hard to compare as it can depend more on the respective
equity stories than the listing market. On the trading volumes side, we highlight the following:
® Almost equal turnover. Average Monthly Total Trading Turnover doesn’t seem to differ
considerably between the two stocks, despite the effect of the IndelB spike in October, when it
realeased strong financial results and the trading turnover reached €20mn in the month. By
excluding the effect of October, the two stocks had exactly the same average turnover;
IndelB vs. WIIT: 2017 trading turnover comparison

IndelB – 2017 monthly trading turnover WIIT – 2017 monthly trading turnover
25 25
20 20
15 15
(€mn)
(€mn)
10 10
Average
5 5 Average
0 0
May June July August September October November December June July August September October November December
IndelB Turnover (€mn) WIIT Turnover (€mn)
IndelB vs. WIIT: stock performance comparison

IndelB stock performance since IPO WIIT stock performance since IPO
40 160% 65 160%
38 140% 140%
36 60
120% 120%
34
32 100% 100%
55
30 80% 80%
€
28 60% 50 60%
26
40% 40%
24 45
22 20% 20%
20 0% 40 0%
May-17 Jul-17 Aug-17 Oct-17 Dec-17 Jan-18 Jun-17 Jul-17 Sep-17 Nov-17 Dec-17 Feb-18
IndelB 21d TV Vel. (RHS, %) IndelB Share Price (LHS, €) WIIT 21d TV Vel. (RHS, %) WIIT Share Price (LHS, €)
® Same “normal” Turnover Velocity. By taking a closer look at the Turnover Velocity, we see
that the two stocks tended to have very similar liquidity in the last trading months, despite being
listed in two different segments. In particular, after that IndelB October peaked, we highlight that
the turnover velocity came back to normal in the 20% space, clearly in line with WIIT.
VALUETRACK
IndelB vs. WIIT: turnover velocity comparison
160%
140%
120%
100%
80%
60%
40%
20%
0%
Jun-17 Aug-17 Sep-17 Nov-17 Jan-18 Feb-18
IndelB 21d TV Vel. (%) WIIT 21d TV Vel. (%)

Our results seem to indicate that being listed in MTA may not necessarily be a catalyst for a higher
stock liquidity.
The trading angle

The final success of a marketplace depends heavily on its investability, i.e. if it offers actual investment
opportunities to institutional investors. Alternatively it may simply remain a "show-room" for the
domestic corporate and a "nice to have" for stock markets and regulators.
In order to measure the current level of AIM Italia investability we have scored the stocks (AIM and
MTA Small and Mid Caps) on the back of how easy or difficult is building a small holding (€1mn) on
that specific name. The exercise is simplified and the main assumptions - i.e. the trading limits set by
the investor on share of daily volumes and time frame - are described below, together with the
minimum volumes required to meet the trading conditions.
Building a €1mn position: trading limits and minimum volumes required

Target holding (€ Max days to build min. volumes/day min. volumes/year
Max of Daily Vol.
'000) the position (€ '000) (€mn)
1,000 33% 10 303 77
Source: Value Track
Tough to get AIM stocks for larger investors

The charts below summarize the outcomes of the simple simulation, depending on the stock's size
groups (split again by market cap). In each chart there are two dotted lines that indicate: a) the
average daily turnover of the stocks considered and the number of trading days it would take to build a
€1mn holding in that cluster (based on 2017 annual data); b) the minimum daily turnover required to
build the €1mn holding within the time limit assumed (10 trading days).
In the clusters below €100mn market cap there are very few stocks meeting the liquidity conditions set
above, i.e. stocks with daily trading volumes above €300k.
AIM Italia
(€'000/dd) (€'000/dd)
|
0
0
400
800
200
600
50
300
350
400
450
100
150
200
250
SCM
DOMINION HOSTING HOLDING
4AIM SICAF
FIRST CAPITAL
PORTALE SARDEGNA
CALEIDO GROUP
KI GROUP
BLUE FIN. COMM.
GIORGIO FEDON
AGATOS
MONRIF
Thematic Report
SOFTEC
EUKEDOS
VIANINI
|
CONAFI PRESTITO'
GRUPPO GREEN POWER
FOPE
AMBIENTHESIS
BEST UNION COMPANY
COMPAGNIA IMMOBILIARE…
TELESIA
AMBROMOBILIARE
CASTA DIVA GROUP
CULTI MILANO
Source: Value Track, Borsa Italiana figures as of 2017 year end

GEL
ECOSUNTEK
PRISMI
05 April 2018
IT WAY
ITALIA INDEPENDENT
|
MONDO TV SUISSE
CDR ADVANCE CAPITAL
Daily Turnover of stocks with market cap below €50mn
Daily Turnover of stocks with market cap of €50-100mn

COVER 50
DIGITAL360
ENERGY LAB
CALEFFI
NET INSURANCE
MTA
CSP INTERNATIONAL
CAD IT
MTA
MEDIACONTECH
GRUPPO WASTE ITALIA
DIGITOUCH
BANCO DI DESIO
BIOERA
TPS
ENERGICA MOTOR COMPANY
= ca.€300k
FRENDY ENERGY
AIM
ENERTRONICA
MAILUP
FINLOGIC
PIERREL
AIM
VISIBILIA EDITORE
MONDO TV FRANCE
Avg. Daily Turnover = ca.€70k

IMVEST
ROSSS
FULLSIX
Days to build a €1mn position = 18 days

EEMS
GABETTI PROP. SOL.

LVENTURE GROUP
GO INTERNET
CERAMICHE RICCHETTI
CLASS EDITORI
Avg. Daily Turnover to build a €1mn position in 10 days

NOTORIOUS PICTURES
INNOVATEC
VETRYA
AXELERO
BIANCAMANO
WM CAPITAL
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA
DIGITAL MAGICS
ACOTEL GROUP
FIDIA
ILLA
BOMI ITALIA
GAMBERO ROSSO
CHL
NETWEEK
CENTRALE DEL LATTE
TERNIENERGIA
EUROTECH
GEQUITY
SINTESI
CLABO
ALFIO BARDOLLA
IL SOLE 24 ORE
14
VALUETRACK
VALUETRACK
Daily Turnover of stocks with market cap of €100-200mn
2,000
1,800 Avg. Daily Turnover = ca.€400k

1,600
1,400
1,200
= ca.€300k
(€'000/dd)
1,000
800
600
400
200
MTA AIM
Daily Turnover of stocks with market cap above €200mn
3,500
3,000 Days to build a €1mn position = 4 days
2,500
2,000 = ca.€300k
(€'000/dd)
1,500
1,000
500
MTA AIM
VALUETRACK
From the charts above we get a relatively cautious message, i.e. most of the AIM stocks at the moment
do not represent an "easy" investment, and the same happens for most of the MTA stocks below the
€100mn market cap.
Drivers of liquidity
If we focus on the drivers of stocks' turnover that are relevant in this specific analysis, we have to leave
aside for the time being: i) the considerations about valuation, management track record and similar
and ii) the impact of general financial markets' conditions. As a consequence we take the stocks'
market cap as a given and the drivers left are only free float and turnover velocity.
While this is quite simple and intuitive, it may be useful to underline how much these two factors may
improve the liquidity outlook of a certain stock or market segment. The table below provides the
minimum size of a company (in terms of market cap) needed to build a €1mn holding (given the
trading limits set above). As this clearly depends on the company's free float and turnover
velocity, the exercise underlines how these factors do matter in order to get the stock into the
investors' portfolios, all the rest being equal.
Minimum market cap required to build a €1mn position vs free float and TV velocity
Target Max of Max days to min. TV/day min. TV/year FF TV FF mkt cap Free Float Min mkt cap holding as %
holding (€ '000) Daily Vol. build pos ition (€'000) (€mn) Velocity (€mn) (€mn) of equity
30% 258 0.4%
assumpti ons 100% 77 40% 193 0.5%
50% 155 0.6%
1,000 33% 10 303 77
30% 86 1.2%
300% 26 40% 64 1.6%
50% 52 1.9%
Source: Value Track
The charts below show the AIM companies with the highest (and lowest) potential in terms of liquidity
(i.e. those with higher and lower free float mkt cap) compared to the actual turnover recorded by the
relative stocks in 2017.
It is interesting to note that the TV velocity of the thinnest stocks of AIM is a multiple of the one
recorded by the largest ones. We do not believe this is generally due to particularly strong equity
stories and we acknowledge there are a few "special situations" among them, however it suggests that
there is no reason for many AIM stocks not to enjoy velocity levels much higher than today, should
interest and demand arise.
AIM Italia - Top/Bottom stocks by Free Float market cap vs. annual turnover (2017, €mn)
Top 10 Stocks Bottom 10 Stocks
350 30
300 25
250
20
200
15
150
10
100
5
50
-
-
SCM POLIGR. BLUE FIN. GRUPPO ENERGY VISIBILIA CALEIDO WM CAPITAL ROSETTI
BIO ON ORSERO SMRE ITALIAN H-FARM EXPERT MASI SITI - B&T GIGLIO TRIBOO
PRINTING COMM. GREEN LAB EDITORE GROUP MARINO
WINE SYSTEM AGRICOLA GROUP
POWER
BRANDS
FF Market Cap 2017 (€mn) Turnover (€mn) FF Market Cap 2017 (€mn) Turnover (€mn)
Source: Value Track on Borsa Italiana and S&P Capital IQ figures as of 2017 year end
VALUETRACK
The following charts combine the stocks with the highest (lowest) turnover velocity with their stock
performance (2017). There is no clear correlation, but the stock performance of the most liquid stocks
is much higher than the market average and than those of the "skinny" names, which however
typically tend to lag behind in a bullish market as it was 2017.
AIM Italia - Top/Bottom stocks by TV Velocity vs annual price performance (2017, %)

Top 10 Stocks Bottom 10 Stocks
700% 180%
600%
150%
500%
120%
400%
90%
300%
60%
200%
30%
100%
0% 0%
-100% -30%
WM VISIBILIA CLABO INNOVATEC GAMBERO SAFE MONDO ENERGY VETRYA GO H-FARM SMRE INIZIATIVE MASI LEONE FIRST DHH SCM FINTEL ROSETTI
CAP. EDITORE ROSSO BAG TV FR. LAB INTERNET BRESCIANE AGRICOLA FILM CAPITAL ENERGIA MARINO
Tv Velocity (%) 2017 Performance (%) Tv Velocity (%) 2017 Performance (%)
Source: Value Track on Borsa Italiana and S&P Capital IQ figures as of 2017 year end
VALUETRACK
AIM Italia vs. other European MTFs

In the latest years there has been an increasing effort from major Stock Markets to re-launch market
segments devoted to SMEs. As of now, among the major European MTFs AIM Italia is relatively well
positioned, although it still lags behind Euronext (Growth) and AIM UK.
AIM UK represents a clear benchmark for all the other MTFs as it has stabilized on a 60-80%
turnover velocity level, with a universe of around 1,000 stocks, a number that is in line with the one
of its main market.
AIM Italia can, in our view, grow in a similar way in the medium term. Indeed, width of stock
universe and average size of stocks can both increase, driven by the combined effect of SPACs and
PIRs on respective sides.
All the major European stock markets specialized in the small-medium size corporates (also defined
"growth companies") have undertaken reorganizations, re-launches and key changes in their internal
regulations in the recent past.
This seems to prove that the launch of the "perfect SMEs market segment" is not an easy one and that
the key benchmark remains the AIM UK segment (born in 1995 and from the very beginning already
larger than most today's European MTFs).
Major European MTFs for SMEs

Stocks Mkt Cap TV TV Velocity Reference Index Effective as of
(#) (€mn) (€mn)
MAB (Spain)* 41 1,137 197 19% IBEX MAB 15, IBEX MAB All Shares July 2009
ESM (Ireland) 22 5,561 1,364 25% ISEQ ESM April 2005
AIM (Italy) 95 5,579 1,954 41% FTSE AIM Italia March 2012
Scale (Germany) 48 6,836 1,941 31% Scale All Shares, Scale 30 March 2017
Euronext Growth (France)** 197 12,132 4,924 46% EURONEXT GROWTH All Shares June 2017
Nasdaq First North 318 16,039 9,002 60% First North 25, First North All Shares June 2006
(Nordics)
AIM (UK) *** 960 120,456 76,414 63% FTSE AIM All Shares, FTSE AIM 100, FTSE June 1995
AIM UK 50
Source: Value Track, Stock Markets' sites. Notes: * Includes only the "Growth" segment, not the "SOCIMI (REITs)"segment. ** Includes five stocks listed in
Brussels and one in Lisbon. Prior to June 2017 Alternext. *** Includes 152 non-UK stocks
In terms of number of stocks and nationalities of incorporation, the only MTF that is already wide and
globalised is AIM UK, with ca. 1,000 stocks in total, of which 152 foreign ones, quite diversified over
many markets and areas.
Yet, AIM UK does not seem to represent for European SMEs a real alternative to their domestic
markets, given the extremely limited presence of Western European corporates. Nasdaq First North
Growth - born in mid 2016 with a gradual merger of Nordic stock markets - is the second largest
market place for SMEs, although the magnitude is still not comparable to the UK, with less than one
third of stocks.
VALUETRACK
Major European MTFs key data (2017)
20,000 70%
63%
60%
18,000
60%
16,000
46% 50%
14,000
41%
12,000
40%
10,000 31%
25% 30%
8,000
19%
6,000 20%
4,000
10%
2,000
- 0%
MAB ESM Scale AIM Italy Euronext Nasdaq First AIM UK
Growth North
MKT CAP (€mn) TV (€mn) TV Velocity adj.(RHS)
Source: Value Track, Stock Markets' sites
AIM vs other MTFs

In the table below we compare the major European MTFs and benchmark them to the UK, on a few
indicators of size and liquidity. These are the main outcomes:
® MAB (Spanish SMEs market) is still small, with a limited universe of stocks, with a relatively
smaller market cap compared to other MTFs and limited trading volumes;
® Irish ESM segment offers still few names, but its market capitalization and turnover are quite
large compared to other marketplaces; however this is due to a limited number of stocks (the top
five names represented 92% of ESM's turnover in 2017);
® New Scale for Equity segment in Germany (previous Open Market) includes a relatively limited
list of corporates, but these have on average market caps much bigger than other markets, while
the trading volumes remain somehow low;
® Euronext Growth market (born from previous Alternext and within a wide reorganization of the
various Euronext segments) offers a wide range of stocks (97% of which are French) with average
market cap and turnover broadly in line with those included in AIM Italia;
® Nasdaq First North includes a wide universe of stocks and is relatively internationalised over
the Nordic region, comprising stocks listed in four markets, but in terms of average market
capitalizations and volumes it is comparable to other MTFs;
® AIM Italia stocks still represent a limited universe of corporates, especially if compared to the
structure of Corporate Italy that is based on SMEs; the number of AIM stocks is twice Spain and
Germany but less than half France and 10x less than UK (again this is definitely not justified, also
considering that comparing the main markets MTA stocks are one third of LSE's).
VALUETRACK
Major European MTFs vs. AIM UK

N. stocks Avg Mkt cap/stock Avg TV/stock
# vs AIM UK €m vs AIM UK €m vs AIM UK
MAB 41 0.04 29 0.23 5 0.06
ESM 22 0.02 253 2.01 62 0.78
AIM Italia 95 0.10 59 0.47 21 0.26
Scale 48 0.05 142 1.13 40 0.51
Euronext Growth 197 0.21 64 0.51 26 0.33
Nasdaq First North 318 0.33 50 0.40 28 0.36
AIM UK 960 1.00 125 1.00 80 1.00
Source: Value Track, Stock Markets' sites
Zoom on AIM UK, the benchmark

If we focus our analysis on AIM UK market we get a few additional information, in particular:
® The UK market includes a wide segment of small caps (stocks below €50mn mkt cap),
representing 60% of its universe and 9% of its capitalization, with 50% of AIM UK market cap
coming from the above €500mn stocks;
® The stocks with market capitalization below €100mn represent 75% of the AIM UK universe, with
an average Market Cap/stock in line with AIM Italia and Euronext Growth. Comparing Italy and
UK by stock composition the main difference lies in the "very large" group, virtually nonexistent
in Italy.
AIM UK vs AIM Italia - Stocks' distribution by market cap (2017)

AIM UK AIM Italia
Mkt cap Stocks Market cap Mkt cap Stocks Market cap Mkt cap
range (€mn) # distribution €mn distribution /stock # distribution €mn distribution /stock
0-10 229 24% 1,114 1% 5 10 11% 63 1% 6
10-50 348 36% 9,129 8% 26 44 47% 1,081 19% 25
50-100 135 14% 9,464 8% 70 21 23% 1,412 25% 67
100-200 119 12% 17,468 15% 147 13 14% 1,674 29% 129
200-500 79 8% 24,543 20% 311 5 5% 1,467 26% 293
above 500 50 5% 58,739 49% 1175 0% - 0% -
Total 960 100% 120,456 100% 125 93 100% 5,698 100% 61
Source: Value Track, Borsa Italiana, LSE. Excludes non trading stocks
VALUETRACK
® The difference underlined above was less marked in the past, as AIM UK has undertaken a clear
transformation: after 2007 it has reversed its growth trend in terms of number of stocks listed.
AIM UK - Listed stocks number 1995-2017
1800
1600
1400
1200
1000
800
600
400
200
0
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
UK stocks Intl stocks
Source: Value Track, LSE
® Yet, this has not led to a similar trend in terms of total market capitalization (up compared to
2007 peak) and turnover (in 2017 only slightly below 2007, thanks the strong performance of
latest year);
AIM UK - Market capitalization evolution 1995-2017
120,000
100,000
80,000
60,000
40,000
20,000
0
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Market cap Trend line
VALUETRACK
® In more detail over the 2007-2017 period the universe of stocks of AIM UK has reduced by over
70% and in particular the small cap segment (below £100mn market cap) has been heavily
downsized with the number of stocks almost halved and the average size increased; on the other
hand the larger cap segments (above £500mn) have increased their universe of stocks and the
average market cap. These two segments (see table below) have supported AIM UK in the last
years with an increase in the total market cap of £38bn since 2007 and this has more than
balanced the narrowing effect of the small cap end.
AIM UK 2017 vs. 2007

2017 2007 2017 vs. 2007
Mkt Cap Stocks Mkt Cap Avg Mkt Stocks Mkt Cap Avg Mkt Stocks Mkt Cap Avg Mkt
Range (£mn) (#) (%) Cap (£mn) (#) (%) Cap (£mn) (#) (%) Cap (£mn)
0-50 606 10% 17 1,162 18% 15 -556 12% -7,450
50-100 120 8% 70 226 16% 69 -106 1% -7,166
100-250 140 20% 154 194 31% 156 -54 -2% -8,800
250-500 45 14% 331 57 21% 353 -12 -6% -5,259
500-1000 33 20% 662 15 10% 677 18 -2% 11,696
1000+ 16 28% 1,863 2 4% 1,758 14 6% 26,300
Total 960 100% 111 1,656 100% 59 -696 89% 9,321
AIM UK - Turnover and TV Velocity evolution 1995-2017
80,000 120%
70,000
100%
60,000
80%
50,000
40,000 60%
30,000
40%
20,000
20%
10,000
0 0%
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Turnover (£mn) TV Velocity (RHS) Trend line
These considerations would suggest that AIM UK (born in 1995 in the most developed and
internationalized financial marketplace) has entered a different phase of its life cycle. This is not the
case for the others marketplaces, that are still in their initial growth phase, and where new listings are
expected to remain a key driver in terms of quality and size for a few years ahead.
In terms of turnover velocity AIM UK seems to be stabilizing in the 60%-80% range (see chart above),
well above the levels of most European MTFs, with a stock universe around 1k stocks, broadly in line
with its main market LSE.
VALUETRACK
Statistical appendix
AIM Italia 2013-17: Number of stocks, Turnover (i.e. Traded volumes), Market Cap
95
6,000 100
74 77
5,000
75
4,000 57
3,000 36 50
2,000
25
1,000
- 0
2013 2014 2015 2016 2017
Mkt Cap (RHS, €mn) Traded Volumes (LHS, €mn) N. stocks (LHS, Year End)
Source: Value Track analysis on S&P Capital IQ figures
AIM Italia 2013-17: Turnover Velocity, Free Float Turnover Velocity, Days with trade
140% 100%
120%
100% 75%
80%
50%
60%
40% 25%
20%
0% 0%
2013 2014 2015 2016 2017
TV Velocity (LHS, median) Free Float TV Velocity (LHS, median) Days with trade/total (RHS, %, avg)
AIM Italia 2013-17: Total Turnover, IPOs related turnover as % of total
2,500 50%
2,000 40%
1,500 30%
1,000 20%
500 10%
0 0%
2013 2014 2015 2016 2017
AIM Italia total TV (LHS, €mn) IPOs TV as % of mkt (RHS, %)
VALUETRACK
AIM Italia vs. MTA Stock Exchange: Main Statistics (2017 Year End)
Stocks Market Cap FF Market Free Float Turnover Days with TV Velocity FF TV Vel.
(#) (€mn) Cap (€mn) (%) (Daily, €mn) trades (%) (%) (%)
Total
AIM IT (*) 84 4,504 1,384 30.7% 9 84.9% 51.3% 166.9%
STAR (MTA) 73 41,962 20,155 48.0% 88 99.9% 53.1% 110.5%
Small Cap (MTA) 127 28,198 16,203 57.5% 59 99.0% 53.1% 92.5%
Mid Cap (MTA) 60 102,701 42,538 41.4% 190 100.0% 46.9% 113.3%
Market cap below €50mn

AIM IT (*) 54 1,144 347 30.3% 4 83.5% 79.9% 263.4%
STAR (MTA) 8 237 124 52.3% 1 99.4% 96.8% 185.1%
Small Cap (MTA) 35 839 457 54.5% 3 97.3% 97.8% 179.5%
Mid Cap (MTA) 0 0 0 0.0% 0 0.0% 0.0% 0.0%
Market cap of €50-100mn

AIM IT (*) 19 1,257 446 35.5% 2 90.4% 43.1% 121.4%
STAR (MTA) 4 270 115 42.6% 1 100.0% 124.5% 292.4%
Small Cap (MTA) 17 1,134 342 30.2% 4 98.8% 83.9% 278.0%
Mid Cap (MTA) 0 0 0 0.0% 0 0.0% 0.0% 0.0%

AIM IT (*) 7 879 177 20.1% 1 72.8% 33.3% 165.6%
STAR (MTA) 15 2,228 973 43.7% 10 100.0% 113.0% 258.9%
Small Cap (MTA) 34 4,921 1,829 37.2% 15 99.8% 78.2% 210.5%
Mid Cap (MTA) 0 0 0 0.0% 0 0.0% 0.0% 0.0%
Market cap above €200mn

AIM IT (*) 4 1,223 414 33.9% 2 98.7% 46.0% 135.7%
STAR (MTA) 46 39,228 18,943 48.3% 76 100.0% 48.9% 101.3%
Small Cap (MTA) 41 21,304 13,575 63.7% 37 100.0% 44.0% 69.0%
Mid Cap (MTA) 60 102,701 42,538 41.4% 190 100.0% 46.9% 113.3%

(*) AIM IT figures do not include SPACs pre business combination and suspended stocks
VALUETRACK
AIM Italia vs. MTA Stock Exchange: Average Statistics (2017 Year End)
Stocks Avg. Mkt. Cap Avg. FF Mkt. Avg. Turnover Avg. TV Vel. Avg. FF TV Vel.
(#) (€mn) Cap (€mn) (€mn) (%) (%)
Total
AIM IT (*) 84 53.6 16.5 27.5 51.3% 166.9%
STAR (MTA) 73 574.8 276.1 305.0 53.1% 110.5%
Small Cap (MTA) 127 222.0 127.6 118.0 53.1% 92.5%
Mid Cap (MTA) 60 1711.7 709.0 803.5 46.9% 113.3%
Market cap below €50mn

AIM IT (*) 54 21.2 6.4 16.9 79.9% 263.4%
STAR (MTA) 8 29.6 15.5 28.7 96.8% 185.1%
Small Cap (MTA) 35 24.0 13.1 23.4 97.8% 179.5%

AIM IT (*) 19 66.2 23.5 28.5 43.1% 121.4%
STAR (MTA) 4 67.4 28.7 83.9 124.5% 292.4%
Small Cap (MTA) 17 66.7 20.1 55.9 83.9% 278.0%

AIM IT (*) 7 125.6 25.3 41.8 33.3% 165.6%
STAR (MTA) 15 148.5 64.8 167.8 113.0% 258.9%
Small Cap (MTA) 34 144.7 53.8 113.2 78.2% 210.5%
Market cap above €200mn

AIM IT (*) 4 305.7 103.6 140.5 46.0% 135.7%
STAR (MTA) 46 852.8 411.8 417.0 48.9% 101.3%
Small Cap (MTA) 41 519.6 331.1 228.4 44.0% 69.0%
Mid Cap (MTA) 60 1711.7 709.0 803.5 46.9% 113.3%

VALUETRACK
AIM Italia vs. MTA Stock Exchange: Breakdown by Market Cap clusters
Mkt. Cap. (€mn) 0-50 50-100 100-200 200+ Total
# Stocks
AIM IT (*) 54 19 7 4 84
MTA (Small&Mid Caps) 35 17 34 101 187
MTA STAR 8 4 15 46 73
% of total
AIM IT (*) 64% 23% 8% 5% 100%
MTA (Small&Mid Caps) 19% 9% 18% 54% 100%
MTA STAR 11% 5% 21% 63% 100%
Avg. Mkt Cap (€mn)

AIM IT (*) 21 66 126 306 54
MTA (Small&Mid Caps) 24 67 145 1228 248
MTA STAR 30 67 149 853 575

AIM Italia stocks: Free Float Turnover Velocity by IPO Date

FF. TV Vel. (%, median) Stocks (#) 2013 2014 2015 2016 2017
IPO 2013 11 180 49 83 51 165
IPO 2014 16 103 92 49 160
IPO 2015 17 113 33 185
IPO 2016 9 26 49
IPO 2017 18 191
AIM total TV (€m) 94 77 97 42 130
IPOs TV as % of mkt 86 26 8 -16 61
Source: Value Track analysis on S&P Capital IQ, Borsa Italiana figures
VALUETRACK
AIM Italia’s stocks listed back as of 2013: Liquidity statistics

FF T.VEL (%/dd) FF T.VEL (%/dd) FF T.VEL (%/dd) FF T.VEL (%/dd) FF T.VEL (%/dd)
Name IPO Date
2013 2014 2015 2016 2017
TE Wind (Agatos) 11/10/2013 274.8 158.5 130.7 51.5 116.0
Digital Magics 31/07/2013 31.0 44.4 82.5 26.6 113.0
Enertronica 15/03/2013 986.3 389.1 292.8 111.0 313.7
GreenItaly1 (Zephyro) 27/12/2013 25.6 8.8 65.6 13.7 77.6
Italia Independent 28/06/2013 237.6 82.7 63.1 89.9 164.8
Innovatec 20/12/2013 2678.9 522.9 29.9 33.9 501.5
Leone Film Group 18/12/2013 180.1 42.8 24.2 45.0 35.5
Mondo Tv France 25/03/2013 238.2 903.3 786.6 141.5 466.7
Net Insurance 19/12/2013 33.8 1.5 0.4 1.3 97.0
Safe Bag 12/09/2013 22.3 49.0 231.0 182.2 806.1
Wm Capital 23/12/2013 55.7 46.3 96.6 198.2 5050.7
Total 2013 (weighted) 125.8 59.3 78.3 44.1 270.8
Average 433.1 204.5 163.9 81.3 703.9
Median 180.1 49.0 82.5 51.5 164.8

FF T.VEL (%/dd) FF T.VEL (%/dd) FF T.VEL (%/dd) FF T.VEL (%/dd)
Name IPO Date
2014 2015 2016 2017
Axelero 11/12/2014 157.2 21.0 61.2 158.4
Blue Note (Casta Diva Group) 22/07/2014 70.9 138.1 2.5 129.0
Ecosuntek 08/05/2014 63.6 30.5 10.9 210.8
Energy Lab 20/05/2014 32.3 23.3 51.0 835.4
Expert System 18/02/2014 109.4 61.4 33.3 67.7
Giorgio Fedon 18/12/2014 189.5 132.9 17.0 65.8
Gruppo Green Power 22/01/2014 169.5 53.5 17.0 429.5
Go Internet 06/08/2014 474.9 467.8 177.0 234.0
Iniziative Bresciane 15/07/2014 16.2 14.9 9.3 34.0
Lucisano Media Group 16/07/2014 39.4 82.3 71.6 240.3
Mailup 29/07/2014 93.6 140.8 30.6 161.6
Modelleria Brambilla 05/12/2014 533.8 165.5 48.5 60.1
Notorious Pictures 23/06/2014 60.0 48.2 79.7 482.3
Bio On 24/10/2014 458.3 348.5 177.7 214.3
Plt Energia 04/06/2014 95.9 101.7 119.0 113.5
Triboo 11/03/2014 188.9 198.5 49.5 103.2
Total 2014 (weighted) 156.4 146.9 59.0 165.7
Average 172.1 126.8 59.7 221.2
Median 102.7 92.0 49.0 160.0
VALUETRACK

FF T.VEL (%/dd) FF T.VEL (%/dd) FF T.VEL (%/dd)
Name IPO Date
2015 2016 2017
Assiteca 27/07/2015
71.0 14.4 97.9
Biodue 20/05/2015 96.2
1,498.9 99.5
Blue Financial Communication 11/12/2015
55.4 117.7 212.9
Bomi Italia 26/06/2015
139.0 15.8 185.2
Clabo 31/03/2015 1,153.2
145.5 101.8 1,153.2
Caleido Group 24/03/2015 4.4
113.0 278.7
Cover 50 13/05/2015
100.1 14.6 92.0
Digitouch 16/03/2015
131.2 39.1 213.3
Elettra Investimenti 21/04/2015 33.2
38.3 185.6
H-Farm 13/11/2015 2.9 15.1
17.1 15.1
Gambero Rosso 23/11/2015
283.2 101.1 905.7
Giglio Group 07/08/2015 72.7
138.1 243.8
Italian Wine Brands 29/01/2015
21.0 10.4 72.2
Masi Agricola 30/06/2015 25.3 41.2
90.2 41.2
Mondo Tv Suisse 13/04/2015 215.7
633.3 346.9
Orsero 10/11/2015
7.7 16.6 133.9
Piteco 31/07/2015 98.2 121.0
150.8 121.0
Total 2015 (weighted) 91.3 25.7 135.4
Average 213.8 57.7 258.7
Median 113.0 33.2 185.2

FF T.VEL (%/dd) FF T.VEL (%/dd)
Name IPO Date
2016 2017
4AIM SICAF 29/07/2016 29.2 28.4
ABITARE IN 08/04/2016 23.7 20.4
Dominion Hosting Holding 27/07/2016 7.7 5.0
Energica Motor Company 29/01/2016 11.6 37.8
Fope 30/11/2016 4.5 27.5
Gpi 29/12/2016 21.0 58.8
Solutions Capital Management 28/07/2016 1.6 1.1
Sim
Siti - B&T 31/03/2016 2.8 29.9
Smre 20/04/2016 11.5 11.1
Total 2016 (weighted) 22,9 62,9
Average 40,8 96,4
Median 26,1 48,6
VALUETRACK

FF T.VEL (%/dd)
Name IPO Date
2017
Alfio Bardolla 28/07/2017 1597.3
Alkemy 05/12/2017 437.3
Culti Milano 17/07/2017 194.8
Dba Group 14/12/2017 186.4
Digital360 13/06/2017 130.1
Equita Group 23/11/2017 362.3
Finlogic 09/06/2017 236.5
Gel 20/12/2017 120.8
Health Italia 09/02/2017 69.4
Illa 22/12/2017 628.3
Neodecortech 26/09/2017 181.1
Pharmanutra 18/07/2017 43.4
Portale Sardegna 16/11/2017 61.8
Sit 20/07/2017 74.3
Telesia 20/02/2017 206.8
Tps 28/03/2017 365.6
Vetrya 29/07/2017 470.1
Wiit 05/06/2017 95.6
Total 2017 (weighted) 74.8
Average 303.4
Median 190.6
0%
200%
600%
400%
800%
1000%
0%
300%
500%
800%
100%
200%
400%
600%
700%
900%
AIM Italia
1000%+
SCM
|
VIANINI
FIRST CAPITAL
DHH
BEST UNION COMPANY
4AIM SICAF
CAD IT
CONAFI PRESTITO'
CALEFFI
EEMS
MONRIF
PORTALE SARDEGNA
GIORGIO FEDON
EUKEDOS
PRISMI
KI GROUP
COVER 50
Thematic Report
GABETTI
NET INSURANCE
AMBIENTHESIS
|
CDR ADVANCE CAPITAL

COMPAGNIA IMM. AZ.
CSP INTERNATIONAL
DIGITAL MAGICS
AGATOS
SOFTEC
DIGITAL360
CASTA DIVA GROUP
GEL
EUROTECH
05 April 2018
IMVEST
CENTRALE DEL LATTE
AXELERO
MAILUP
|
ENERGICA
ITALIA INDEPENDENT
BOMI ITALIA
FIDIA
MTA
LVENTURE GROUP
CLASS EDITORI
MTA
FRENDY ENERGY
BIOERA
CULTI MILANO
VETRYA
TELESIA
AMBROMOBILIARE
ECOSUNTEK
BLUE FIN.
AIM
DIGITOUCH
IL SOLE 24 ORE
AIM
GO INTERNET
FINLOGIC
FOPE
CHL
IT WAY
CERAMICHE RICCHETTI
CALEIDO GROUP
ENERTRONICA
TERNIENERGIA
FULLSIX
MONDO TV SUISSE
TPS
MEDIACONTECH
PIERREL
GRUPPO GREEN POWER
MONDO TV FRANCE
NOTORIOUS PICTURES
INNOVATEC
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA
BIANCAMANO
SINTESI
GRUPPO WASTE ITALIA
ILLA
ENERGY LAB
GAMBERO ROSSO
ROSSS
GEQUITY
CLABO
AIM Italia stocks vs. MTA Small-Mid caps: Free Float Turnover Velocity of stocks with market cap below €50mn
VISIBILIA EDITORE
ALFIO BARDOLLA
NETWEEK
WM CAPITAL
AIM Italia stocks vs. MTA Small-Mid caps: Free Float Turnover Velocity of stocks with market cap in the €50-100mn range
30
ACOTEL GROUP
VALUETRACK
VALUETRACK
AIM Italia stocks vs. MTA Small-Mid caps: Free Float Turnover Velocity of stocks with market cap in the €100-200mn range
1000%
800%
600%
400%
200%
0%
MTA AIM
AIM Italia stocks vs. MTA Small-Mid caps: Free Float Turnover Velocity of stocks with market cap above €200mn
800%
600%
400%
200%
0%
MTA AIM
VALUETRACK
AIM Italia - Top/Bottom stocks by Turnover Velocity evolution (2017 vs. 2016)
Stocks with increased liquidity (TV Vel. % 2017 vs. 2016) Stocks with decreased liquidity (TV Vel. % 2017 vs. 2016)
0%
72x
-3% -4%
62x -5%
-11%
-14%
29x -23%
28x
24x -26%
19x -28%
16x 15x 15x
13x
-36%
Neurosoft 4AIM Smre Plt Energia Prismi ABITARE Leone Film Agatos SCM DHH
SICAF IN Group
Net Caleido Ecosuntek Wm Capital Green Softec CDR Energy Lab Visibilia Casta Diva
Insurance Group Power Editore Group
AIM Italia - Top/Bottom stocks by Turnover (2017, €mn) vs. Days Traded as % of Days Listed
Stocks with highest Traded volumes (€mn, vs. % DD Traded) Stocks with lowest Traded volumes (€mn, vs. % DD Traded)
350 100 3 100

90
300 3
95 80
250 70
2
90 60
200
2 50
150
85 40
1
100 30
80 20
50 1
10
- 75 - 0
Bio On Orsero Safe Bag Giglio Clabo Smre It. Wine Gpi Gambero Bomi Italia Modelleria Caleido Dba Group 4AIM Fintel DHH Illa Portale SCM Gel
Group Brands Rosso Brambilla Group SICAF Energia Sardegna
TV 2017 (LHS, €mn) DD TRADED / LISTED 2017 (RHS, %) TV 2017 (LHS, €mn) DD TRADED / LISTED 2017 (RHS, %)
VALUETRACK
AIM Italia - Top/Bottom stocks by Free Float Market Cap (2017, €mn) vs. Days Traded as % of Days Listed
Stocks with highest Free Float Mkt Cap. (€mn, vs. % DD Traded) Stocks with lowest Free Float Mkt Cap. (€mn, vs. % DD Traded)
3 100
300 100
90
3
250 80
95
70
200 2
90 60
150 2 50
85 40
100 1
30
80 20
50 1
10
- 75 - 0
Ideami Eps Equita Sprintitaly Ind. Stars Bio On Crescita Orsero Innova Glenalta Equita Mondo Tv Fope SCM Poligrafici Blue Fin. Green Energy Visibilia Caleido Wm
Pep Of Italy 3 Italy 1 Group Suisse Printing Power Lab Editore Group Capital
FF Market Cap 2017 (LHS, €mn) DD TRADED / LISTED 2017 (RHS, %) FF Market Cap 2017 (LHS, €mn) DD TRADED / LISTED 2017 (RHS, %)
AIM Italia - Top/Bottom stocks by TV Velocity (2017, %) vs Days Traded as % of Days Listed (%)
Stocks with highest TV Velocity (%, vs. % DD Traded) Stocks with lowest TV Velocity (%, vs. % DD Traded)
700 100 14 100
600 12
95 95
500 10
90 90
400 8
300 6
85 85
200 4
80 80
100 2
- 75 - 75
Wm Visibilia Clabo Innovatec Gambero Safe Bag Alfio Alkemy Mondo Tv Equita Neurosoft H-Farm Smre Iniziative Pharmanutra Masi Leone Film DHH SCM Fintel Energia
Capital Editore Rosso Bardolla France Group Bresciane Agricola
TV Vel. 2017 (LHS, €mn) DD TRADED / LISTED 2017 (RHS, %) TV Vel. 2017 (LHS, €mn) DD TRADED / LISTED 2017 (RHS, %)
VALUETRACK
AIM Italia: Stocks ranked by name, by daily turnover, by Free Float Turnover Velocity (2017 year end figures)
Name Market Cap FF. Mkt Cap Name Daily Turnover (€) Name FF. TV Velocity
4AIM SICAF
(€mn)6 (€mn)
5.6 BIO ON 1,202,245 WM CAPITAL 5001.09%
ABITARE IN 54 22.6 ORSERO 544,923 ALFIO BARDOLLA 1600.12%
AGATOS 20 3.5 SAFE BAG 508,564 VISIBILIA EDITORE 1464.26%
ALFIO BARDOLLA 33 4.8 GIGLIO GROUP 279,033 CLABO 1149.51%
ALKEMY 68 35.0 CLABO 247,623 GAMBERO ROSSO 906.99%
AMBROMOBILIARE 8 3.7 SMRE 241,440 ENERGY LAB 842.15%
ASSITECA 71 11.3 ITALIAN WINE BRANDS 152,552 SAFE BAG 802.83%
AXELERO 47 15.9 GPI 142,065 ILLA 759.18%
BIO ON 388 143.4 GAMBERO ROSSO 140,519 POLIGRAFICI PRINTING 663.18%
BIODUE 57 12.2 BOMI ITALIA 135,222 INNOVATEC 510.23%
BLUE FIN. 6 1.3 SITI - B&T 132,645 NOTORIOUS PICTURES 482.82%
BOMI ITALIA 37 18.7 ALFIO BARDOLLA 305,258 MONDO TV FRANCE 466.85%
CALEIDO GROUP 4 0.9 EXPERT SYSTEM 116,613 ALKEMY 437.23%
CASTA DIVA GROUP 25 6.0 DIGITAL MAGICS 113,609 GREEN POWER 424.40%
CDR ADVANCE 11 9.2 TRIBOO 111,522 EQUITA GROUP 383.28%
CAPITAL
CLABO 19 5.5 WM CAPITAL 110,266 TPS 361.64%
COVER 50 46 11.8 SIT 224,321 MONDO TV SUISSE 346.96%
CULTI MILANO 14 4.0 AXELERO 99,229 ENERTRONICA 312.17%
DBA GROUP 52 23.0 VETRYA 95,751 CALEIDO GROUP 278.31%
DIGITAL MAGICS 44 25.7 NOTORIOUS PICTURES 90,605 FOPE 250.43%
DIGITAL360 20 8.5 INNOVATEC 90,968 GIGLIO GROUP 243.24%
DIGITOUCH 19 6.4 WIIT 145,692 LUCISANO MEDIA 239.80%
DHH 13 3.7 GO INTERNET 82,715 GROUP
FINLOGIC 235.42%
ECOSUNTEK 12 3.7 MONDO TV FRANCE 76,222 GO INTERNET 233.13%
ELETTRA 28 5.8 IMVEST 77,382 DIGITOUCH 213.55%
INVESTIMENTI
ENERGICA 42 9.8 VISIBILIA EDITORE 72,619 BIO ON 213.00%
ENERGY LAB 8 1.3 EQUITA GROUP 717,546 BLUE FIN. 211.99%
ENERTRONICA 16 5.2 MAILUP 68,056 ECOSUNTEK 211.47%
EQUITA GROUP 112 47.6 PITECO 64,456 AMBROMOBILIARE 207.86%
EXPERT SYSTEM 60 44.0 ENERTRONICA 63,977 TELESIA 207.19%
FINLOGIC 33 7.5 FRENDY ENERGY 63,789 DBA GROUP 205.13%
FINTEL ENERGIA 101 3.8 ENERGICA 62,554 VETRYA 195.38%
FIRST CAPITAL 27 10.6 DIGITOUCH 53,706 CULTI MILANO 195.28%
FOPE 21 2.3 PHARMANUTRA 105,068 FRENDY ENERGY 189.00%
FRENDY ENERGY 18 8.6 BIODUE 47,687 GPI 188.03%
GAMBERO ROSSO 13 3.9 MASI AGRICOLA 47,183 ELETTRA INVESTIMENTI 184.43%
GEL 18 5.5 TPS 61,477 BOMI ITALIA 183.97%
GIGLIO GROUP 87 29.1 NET INSURANCE 46,155 NEODECORTECH 181.72%
GIORGIO FEDON 24 5.1 PLT ENERGIA 45,185 ITALIA INDEPENDENT 165.34%
GO INTERNET 18 9.0 ENERGY LAB 43,542 ENERGICA 162.45%
GPI 62 19.2 ASSITECA 42,898 MAILUP 161.48%
GREEN POWER 18 1.3 ABITARE IN 42,771 AXELERO 158.32%
HEALTH ITALIA 53 17.6 COVER 50 42,511 IMVEST 152.46%
H-FARM 69 51.5 HEALTH ITALIA 47,714 GEL 141.87%
ILLA 22 4.3 ZEPHYRO 42,358 ORSERO 133.41%
IMVEST 39 12.9 ELETTRA 42,065 CASTA DIVA GROUP 130.55%
INIZIATIVE 69 20.5 INVESTIMENTI
ALKEMY 603,033 DIGITAL360 129.92%
BRESCIANE
INNOVATEC 8 4.5 FINLOGIC 69,951 SOFTEC 119.44%
ITALIA INDEPENDENT 26 5.8 LUCISANO MEDIA 39,113 PITECO 117.29%
ITALIAN WINE 62 54.3 GROUP
CDR ADVANCE 38,579 SITI - B&T 115.56%
BRANDS
KI GROUP 13 3.1 CAPITALTV SUISSE
MONDO 37,866 AGATOS 114.91%
LEONE FILM GROUP 61 13.8 ITALIA INDEPENDENT 37,448 DIGITAL MAGICS 112.50%
LUCISANO MEDIA 35 4.1 POLIGRAFICI PRINTING 36,631 PLT ENERGIA 112.40%
GROUP
MAILUP 32 10.7 PRISMI 32,043 CDR ADVANCE CAPITAL 106.09%
MASI AGRICOLA 143 29.2 NEUROSOFT 31,673 TRIBOO 102.94%
MODELLERIA 14 4.3 ECOSUNTEK 31,006 BIODUE 99.14%
BRAMBILLA
MONDO TV FRANCE 12 4.1 CASTA DIVA GROUP 30,762 ASSITECA 96.75%
MONDO TV SUISSE 12 2.8 AMBROMOBILIARE 30,649 NET INSURANCE 96.02%
NEODECORTECH 52 14.0 H-FARM 30,628 PHARMANUTRA 95.52%
NET INSURANCE 33 12.2 INIZIATIVE BRESCIANE 27,324 WIIT 95.22%
NEUROSOFT 68 12.6 NEODECORTECH 99,817 COVER 50 91.21%
NOTORIOUS 26 4.8 DIGITAL360 43,479 MODELLERIA 90.01%
PICTURES
ORSERO 207 103.7 FOPE 23,029 BRAMBILLA
KI GROUP 82.23%
PHARMANUTRA 126 27.9 TELESIA 26,612 PRISMI 80.42%
PITECO 90 14.0 GREEN POWER 22,083 ZEPHYRO 77.48%
PLT ENERGIA 62 10.2 LEONE FILM GROUP 19,222 SIT 73.75%
POLIGRAFICI 14 1.4 SOFTEC 17,042 ITALIAN WINE BRANDS 71.31%
PRINTING
PORTALE SARDEGNA 5 3.2 AGATOS 15,935 HEALTH ITALIA 69.03%
PRISMI 12 10.1 CULTI MILANO 30,763 SMRE 68.24%
ROSETTI MARINO 143 0.3 GIORGIO FEDON 13,185 EXPERT SYSTEM 67.38%
SAFE BAG 50 16.1 BLUE FIN. 11,086 GIORGIO FEDON 65.96%
SIT 276 77.3 KI GROUP 10,196 PORTALE SARDEGNA 63.83%
SITI - B&T 115 29.2 MODELLERIA 15,078 NEUROSOFT 63.74%
SMRE 352 89.9 BRAMBILLA
CALEIDO GROUP 9,780 ABITARE IN 48.17%
SOFTEC 9 3.6 DBA GROUP 185,423 MASI AGRICOLA 41.02%
SCM 20 2.2 FIRST CAPITAL 6,789 LEONE FILM GROUP 35.35%
TELESIA 14 3.3 4AIM SICAF 6,103 INIZIATIVE BRESCIANE 33.82%
TPS 28 4.3 FINTEL ENERGIA 4,304 FINTEL ENERGIA 28.94%
TRIBOO 86 27.5 DHH 2,462 4AIM SICAF 27.83%
VETRYA 44 12.4 ILLA 128,665 DHH 16.74%
VISIBILIA EDITORE 5 1.3 PORTALE SARDEGNA 8,021 FIRST CAPITAL 16.19%
WIIT 140 38.9 SCM 911 H-FARM 15.12%
WM CAPITAL 5 0.6 GEL 30,870 SCM 10.35%
ZEPHYRO 75 13.9 ROSETTI MARINO 101 ROSETTI MARINO 8.98%
VALUETRACK
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ValueTrack | Thematic Report | 05 April 2018

Little AIM grows up

Growth of number of stocks on right track, approaching

After recent acceleration AIM Italia compares well in

Market Capitalisation (€bn) 2.9 2.9 5.6

The Liquidity factor 3

AIM vs MTA Mid and Small Cap 5

- The trading angle 13

AIM Italia vs other European MTFs 18

Appendix: AIM stocks key data 23

The liquidity factor

Trends over 2013-2017

AIM Italia at a glance 2013-2017

Volatility (%) 64% 35% 34% 39% 43%

Source: Value Track analysis on Borsa Italiana figures

In summary we see three take-away:

IPOs turnover (i.e. value of traded volumes) as a % of total AIM Italia

AIM Italia vs. MTA Mid and Small Cap

0-50 50-100 100-200 200+

AIM vs MTA Small and Mid Caps vs MTA STAR

AIM (*) 84 4,504 1,384 30.7% 9 84.9% 51.3%

FF mkt cap of stocks with market cap below €50mn

GABETTI PROP. SOL.

LUCISANO MEDIA GROUP

BEST UNION COMPANY

CENTRALE DEL LATTE

FF mkt cap of stocks with market cap €50-100mn

Mkt Cap in the €50mn-€100mn range. Only seven AIM stocks

FF mkt cap of stocks with market cap €100-200mn

FF mkt cap of stocks with market cap €200mn+

Case # 1: LU-VE Group

LU-VE Group: 2017 Trading Turnover by month

LU-VE Turnover (€mn) Average

LU-VE Group: 2017 Stock performance

Source: S&P Capital IQ

Our take on this case

Tecnoinvestimenti monthly trading turnover

TECN Turnover (€mn) Average TECN Turnover (€mn) Average

Source: S&P Capital IQ

Tecnoinvestimenti stock performance

Source: S&P Capital IQ

Our take on this case

Case # 3: IndelB (MTA) vs. WIIT (AIM)

IndelB vs. WIIT: 2017 trading turnover comparison

IndelB Turnover (€mn) WIIT Turnover (€mn)

Source: S&P Capital IQ

IndelB vs. WIIT: stock performance comparison

Source: S&P Capital IQ

IndelB vs. WIIT: turnover velocity comparison

IndelB 21d TV Vel. (%) WIIT 21d TV Vel. (%)

Source: S&P Capital IQ

Our take on this case

The trading angle

Building a €1mn position: trading limits and minimum volumes required

Source: Value Track

Tough to get AIM stocks for larger investors

Source: Value Track, Borsa Italiana figures as of 2017 year end

Daily Turnover of stocks with market cap of €50-100mn

Avg. Daily Turnover = ca.€200k

Days to build a €1mn position = 18 days

GABETTI PROP. SOL.

Avg. Daily Turnover to build a €1mn position in 10 days

Daily Turnover of stocks with market cap of €100-200mn

1,800 Avg. Daily Turnover = ca.€400k