Investor Presentation October 2016 DRAFT Disclaimer This document - PowerPoint PPT Presentation

DRAFT DRAFT Investor Presentation October 2016

DRAFT Disclaimer This document has been prepared by Space2 S.p.A. (“Space2” or the “Company”) exclusively for use in the presentation of the envisaged business combination between Space2 and the target company. This document does not constitute or form part of any offer or invitation to sell, or any solicitation to purchase any shares or any other kind of financial instruments issued or to be issued by Space2 and/or the combined entity resulting from the envisaged business combination between Space2 and the target company. Not all the information contained and the opinions expressed in this document have been independently verified. In particular, this document contains forward-looking statements that are based on current estimates and assumptions made by the management of Space2 to the best of their knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results including the financial condition and profitability of Space2 and the combined entity resulting from the envisaged business combination to differ materially from, or be more negative than, those expressed or implied by such forward-looking statements. Consequently, Space2 and its management can give no assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual occurrence of the predicted developments. The data and information contained in this document are subject to variations and integrations. Although Space2 reserves the right to make such variations and integrations when it deems necessary or appropriate, Space2 assumes no affirmative disclosure obligation to make such variations and integration and no reliance should be placed on the accuracy or completeness of the information contained in this document. No person accepts any liability whatsoever for any loss howsoever arising from the use of this document or of its contents or otherwise arising in connection therewith. By accepting this document, you agree to be bound by the foregoing limitations. 2

DRAFT Today’s presenters Gianni Mion Giulio Ranzo Partner Chief Executive Officer Roberto Italia Sergio Scippa Partner SVP Business Unit & CEO Regulus Carlo Pagliani Paolo Bellomi Partner SVP Product Development Edoardo Subert Alessandro Agosti Partner Chief Financial Officer 3

DRAFT Table of Contents 1. Investment overview 2. Avio highlights 3. Market and Business 4. Technology&Operations 5. Future Prospects 6. Financials 7. Transaction overview 4

DRAFT 1. Investment overview 5

DRAFT Space2: enabling the growth of Italian champions  Space2 is the second Italian SPAC promoted by Space Holding and listed on MIV, the regulated segment for investment vehicles of the Milan Stock Exchange, since 31 July 2015  On listing, Space2 raised an aggregate € 308m, including € 8m from Space Holding  Space, Space2's predecessor, merged with Fila SpA, now listed on the STAR segment of the Milan Stock Exchange, in November 2015  Searching for a leading Italian company with an attractive profile and a strong management team  Space2 will use € 154m to acquire a unique Italian target. The remaining € 154m will go into Space 3, a newly created SPAC still promoted by Space Holding 6

DRAFT Avio: our selected target  A key European player with an essential role in the growing space economy  A global technology leader, with over 50 years of experience in space propulsion and launch systems  At the heart of designing, developing, manufacturing, assembling and delivering the most successful European launchers  An established international footprint, with exclusive access to critical launch infrastructure at the European spaceport  Solid revenue growth and robust cash generation supported over time by substantial backlog and dedicated public R&D funding  Experienced and dedicated team, with over 760 skilled employees At the forefront of Italian technological leadership 7

DRAFT Our partners: Leonardo and Avio Management Avio Space2 investors Leonardo Management Access to capital markets Access to broader space Vision, leadership and technologies and further competence global presence 68% (1) 28% (1) 4% (1) (1) Shareholding structure at Business Combination with the acquisition of 85.7% stake and assuming that (i) no Space2 shareholder exercises the Right to Withdrawal and (ii) Avio Management acquires 5.6% of the Avio share capital (“Base Case”) 8

DRAFT 2. Avio highlights 9

DRAFT Avio: a key player in EU Space Launchers Vega Ariane 5 • 10 tons to • 1,5 tons to Geostationary Low Earth Orbit Orbit • Large • Small Telecom & Earth Broadcasting observation Satellites Satellites • Current flight • Current flight rate : 6/year rate : 3/year • In operation • In operation since 1996 since 2012 Industrial partner (ca. 10% share (1) ) Prime Contractor (ca. 65% share (1) ) (1): Management estimate 10

DRAFT Launchers enable all other Space business segments Global space value chain (2015) Launch Satellite Satellite Ground industry (1,2) services (2) End users manufacturing Segment $ 5.4bn $ 16.6bn $ 58.9bn $ 127.4bn (1) Includes launcher manufacturing and launch service activities (2) Commercial services revenues only Sources: based on Satellite Industry Association (2015) 11

DRAFT End-market demand driven by various application domains Broadband Earth Meteorology Technology Navigation Broadcasting Data observation To connect people and To gain deeper To understand To discover new To navigate devices worldwide insight of the and forecast the worlds and the people to their earth’s surface weather cosmos destinations • Satellite television • Mobile Data • Agriculture and • Weather forecast • In-orbit testing • Navigation / satellite radio urban planning • Managed network • Climate change / • Health • Positioning • Satellite services (fleet • Mining environment experiments broadband management) development analysis • Machine 2 • Disaster machine management End users Our daily lifestyle hinges upon what happens in space 12

DRAFT it takes 5 min to get to Space, two hours to position satellites Example of typical Low Earth Orbit mission Fairing separation Propulsion stages separations Upper stage maneuvers and satellite injection into orbit 800km Propelled phase Coasting phase Earth’s atmosphere 200km 5min 1hr 2hrs Fourth stage first firing: orbital conditions reached Fourth stage First three stages: third firing: de- Fourth stage 7.5km/s reached and orbiting second firing: out of atmoshere circular orbital reached 13

DRAFT Avio has over 50 years in Space Launchers 1988 2012 1960 1980 Today Integrated Explosives Qualified supplier Propulsionist Prime contractor operator maker Design A pre-requisite to authority of Vega LV prime Solid rocket motors Vega Evolution enter in the space Ariane 5 and supplier Ariane 6 business P230 SRM and design authority PROPULSIONIST vulcan TP Evolved from supplier to integrated operator 14

DRAFT Today Avio has 3 main competency areas Solid propulsion Liquid propulsion System integration All system testing and verification Materials :Pre-preg and TP rubber MIRA TP and Vulcain Lox TP Firing Test Launcher Vinci integration Lox TP Mission Insulated motor Case Mfg TP integration simulation Propellant casting Nozzles 15

DRAFT Avio generates today 257M€ annual revenues Ariane propulsion Vega launcher Boosters € 112 M Ariane 5 Ariane 6 ≈ 48 % Rev 257 M€ ≈ 47 % Turbopumps ≈ 4 % Vega Vega C Aster 30 Camm ER Vulcain Vinci Tactical propulsion Production Development 16

DRAFT Consistent financial track record in the last 10 years Ariane 7 7 Vega 6 6 6 6 6 5 5 5 4 Growing Ariane and 3 flight rates Vega flights 1 1 1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Stable ESA Funding 329 206 179 489 funding (M€) 3.5 years Order backlog Backlog visibility (M€) 7% Net revenues revenue (M€) CAGR in 10 years 17

DRAFT Strong partnership with leading EU Space players • World leading Commercial Launch Service Provider • Avio as a shareholder since 1984 • Ariane 5 and Ariane 6 Prime Contractor • Partner in the two Joint Ventures since 1990 Europropulsion (solid stage integration) • • Regulus (propellant casting) • Research and Technology program definition Partner in Vega’s project (ELV) since 2000 • 18 18

DRAFT Avio plays a pivotal role between market demand and product development Product Funding & Commercial Satellite development product policy exploitation services and production Supplier Integrator Vega Ariane …OTHERS • Technology/ • Procurement product • System • Commercialization development • Satellite operations integration • Launch operations • Manufacturing • Testing, • Testing verification Avio at the heart of the EU launcher industry 19