DRAFTDRAFT

Investor PresentationOctober 2016

DRAFT

Disclaimer

2

This document has been prepared by Space2 S.p.A. (“Space2” or the “Company”) exclusively for use in thepresentation 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 purchaseany shares or any other kind of financial instruments issued or to be issued by Space2 and/or the combined entityresulting 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 andassumptions made by the management of Space2 to the best of their knowledge. Such forward-lookingstatements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause theactual results including the financial condition and profitability of Space2 and the combined entity resulting fromthe envisaged business combination to differ materially from, or be more negative than, those expressed orimplied by such forward-looking statements. Consequently, Space2 and its management can give no assuranceregarding the future accuracy of the estimates of future performance set forth in this document or the actualoccurrence of the predicted developments.The data and information contained in this document are subject to variations and integrations. Although Space2reserves the right to make such variations and integrations when it deems necessary or appropriate, Space2assumes no affirmative disclosure obligation to make such variations and integration and no reliance should beplaced on the accuracy or completeness of the information contained in this document. No person accepts anyliability whatsoever for any loss howsoever arising from the use of this document or of its contents or otherwisearising in connection therewith.By accepting this document, you agree to be bound by the foregoing limitations.

DRAFTToday’s presenters

3

Giulio RanzoChief Executive Officer

Alessandro AgostiChief Financial Officer

Sergio ScippaSVP Business Unit &CEO Regulus

Paolo BellomiSVP Product Development

Roberto ItaliaPartner

Carlo Pagliani Partner

Edoardo SubertPartner

Gianni MionPartner

DRAFTTable 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

5

1. Investment overview

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

7

At the forefront of Italian technological leadership

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

DRAFTOur partners: Leonardo and Avio Management

Access to broader space technologies and further

global presence

Vision, leadership and competence

Access to capital markets

Space2 investors LeonardoAvio

Management

8

4%(1)28%(1)68%(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”)

DRAFT

9

2. Avio highlights

DRAFT

Avio: a key player in EU Space Launchers

10

Vega

• 10 tons to Geostationary Orbit

• Large Telecom & Broadcasting Satellites

• Current flight rate : 6/year

• In operation since 1996

• 1,5 tons to Low Earth Orbit

• Small Earth observation Satellites

• Current flight rate : 3/year

• In operation since 2012

Ariane 5

Industrial partner (ca. 10% share(1)) Prime Contractor (ca. 65% share(1))

(1): Management estimate

DRAFT

Launchers enable all other Space business segments

Satellite manufacturing

$ 16.6bn

Satellite services(2)

$ 127.4bnEnd users

Global space value chain (2015)

Launch industry(1,2)

$ 5.4bn

(1) Includes launcher manufacturing and launch service activities(2) Commercial services revenues only

Sources: based on Satellite Industry Association (2015)

Ground Segment$ 58.9bn

11

DRAFT

End-market demand driven by various application domains

Broadband Data

Earth observation

TechnologyMeteorology Navigation

• Mobile Data• Managed network

services (fleet management)

• Machine 2 machine

• Agriculture and urban planning

• Mining development

• Disaster management

To gain deeper insight of the

earth’s surface

To connect people and devices worldwide

• Weather forecast• Climate change /

environment analysis

To discover new worlds and the

cosmos

To understand and forecast the

weather

• In-orbit testing• Health

experiments

• Navigation• Positioning

To navigate people to their

destinations

Broadcasting

• Satellite television / satellite radio

• Satellite broadband

End

user

s

Our daily lifestyle hinges upon what happens in space

12

DRAFT

it takes 5 min to get to Space, two hours to position satellites

13

First three stages:7.5km/s reached and out of atmoshere

Fourth stage first firing: orbital conditions reached

Fourth stage second firing: circular orbital reached

Fourth stage third firing: de-orbiting

Example of typical Low Earth Orbit mission

Propelled phase

Coasting phase

Earth’s atmosphere

800km

200km

5min 1hr 2hrs

Propulsion stages separations

Fairing separation

Upper stage maneuvers and satellite injection into orbit

DRAFT

PROPULSIONIST

Avio has over 50 years in Space Launchers

14

Evolved from supplier to integrated operator

1988 2012 Today1980

Solid rocket motorssupplier

1960

Qualified supplier

A pre-requisite to enter in the space

business

Explosivesmaker

Propulsionist

Design authority of

Ariane 5P230 SRM and

vulcan TP

Vega LV primeand

design authority

Vega Evolution Ariane 6

Integrated operatorPrime contractor

DRAFT

Today Avio has 3 main competency areas

15

Solid propulsion

Materials :Pre-preg and TP rubber

Propellant casting

Liquid propulsion System integration

Insulated motor Case Mfg

Nozzles

Vulcain Lox TP MIRA TP andFiring Test

TP integration Mission simulation

Vinci Lox TP

Launcher integration

All system testing and verification

DRAFTAvio generates today 257M€ annual revenues

16

€112M

Vega launcherAriane propulsion

Ariane 5 Ariane 6

Vulcain Vinci

Vega Vega C

Production Development

Turbopumps

≈48%

≈47%

≈4%

Rev257M€

Boosters

Tactical propulsionAster 30 Camm ER

DRAFT

Consistent financial track record in the last 10 years

Ariane and Vega flights

OrderBacklog

(M€)

Net revenues (M€)

179 489329 206ESA Funding (M€)

Growing flight rates

3.5 years backlog visibility

7% revenue

CAGR in 10 years

Stable funding

5 56 6

76

5

7

4

6 6

1 1 1

3

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

ArianeVega

17

DRAFTStrong partnership with leading EU Space players

18

• Ariane 5 and Ariane 6 Prime Contractor• Partner in the two Joint Ventures since 1990

• Europropulsion (solid stage integration)• Regulus (propellant casting)

• World leading Commercial Launch Service Provider• Avio as a shareholder since 1984

• Research and Technology program definition• Partner in Vega’s project (ELV) since 2000

18

DRAFTAvio plays a pivotal role between market demand and product development

• Technology/productdevelopment

• Manufacturing

• Testing

• Procurement

• Systemintegration

• Testing,verification

• Commercialization

• Launch operations

Productdevelopment

and production

Commercialexploitation

Satellite services

Funding &product policy

• Satellite operations

Vega

Ariane

Avio at the heart of the EU launcher industry

Supplier Integrator

19

…OTHERS

DRAFT

Skilled and experienced management team

20

SergioScippa

SVP Business & CEO REgulus

MarcoBiagioni

SVP Purchasing

SalvatoreSpinosa

VP IndustrialOperations

FrancescaLillo

VP HSE &Material Eng

AlessandroAgosti

CFO

CarmineSchips

SVP Plants &Planning

Giulio Ranzo

CEO

FrancescoDepasquale

SVP SpaceportOperations.

PierluigiPirrelli

CEOELV

RobertoCiervo

SVP HR

ManricoMastria

SVP Quality

GiorgioMartellino

General Counsel

PaoloBellomi

SVP ProductDevelopment

FrancescoLibri

Internal Auditor

RobertoNasiCEO

Secosvim

DRAFT

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3. Market and Business

DRAFT

Different orbits for different applications

22

36k km

300 / 2000 km

20k km

GEO/GTO orbits 36,000 km

(Heavy launchers)

MEO orbits 22,000 km

(Medium launchers)

LEO orbits 300-1,500 km

(Light launchers)

Atmosphere

Altit

ude

(km

)

TelecomBroadcasting

Navigation

Satellite mass (kg)2000 kg 4000 kg 6000 kg1000 kg

Satellite internet constellations

Weather forecasting

DRAFT

Sources: OECD: The Space Economy at a Glance 2014, LCA Elaboration

Small satellites will drive market demand

Multi-satellite adaptability and multi-orbit deployment capabilities become key factors for launchers vehicles

Lower orbit

serviced with light launchers

Higher orbit

reached by heavy launchers

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020% CAGR

# of satellites

2015-2020+7% p.a.

2010-2015

By orbit (2010 - 2020)

+20% p.a.

Demand driven by emerging commercial customers in LEO

(deployment of mega-constellations)

By mass (2010 - 2020)

Demand driven by ever smaller satellites thanks to technological breakthroughs and the CubeSat

standard

0%10%20%30%40%50%60%70%80%90%

100%

< 1,5 tons

> 1,5 tons

47%

53%

10%

90%

23

Satellite market

% of satellites

SatCom

SmallSatfor E.O.

DRAFT

Source: Union of Concerned Scientists, Teal Database, Science and Technology Policy Institute, LCA Elaboration

Totalsatellites

The number of satellites to be launched will double in the next 5 years

The number of total satellites in orbit will be pushed by commercial exploitation of space, in particular with the deployment of new satellite constellations in LEO orbits

2010 - 2015 2016 - 2020

642 1,318≈ 2 X

Satellites to be launched by customer (2010 - 2020)

436 636

206 682≈ 3 X

≈ 1.5 X

Commercialcustomers

Institutionalcustomers

# of satellites

of w

hich

24

o/w 70% accessible market for

EU launchers

DRAFT

27

HIIA

Epsilon

Competitive landscape in the launch service business

EU fleet covers all relevant segments and provides extremely reliable services

GEO/GTO orbits

36,000 km

(Heavy launchers)

MEO orbits

22,000 km

(Medium launchers)

LEO orbits

300-1,500 km

(Light launchers)

2006-2015 launches 183

Falcon 9 Atlas 5

Delta 2

Minotaur

29

GLSV

PSLV

65287

Proton

Soyuz

Rockot Dnepr

136

CZ-3

CZ-4

CZ-2C

Global launch industry segmentation by orbit

(1) It does not take into considerations 15 Soyuz launches realised by Kourou Spaceport (EU)Source: spacelaunchreport.com (update 2015)

+++Reliability ++++ ++

(1)

25

Ariane 5

Vega

Closed market

DRAFT

2017 to 2019

Robust, fully contracted backlog

Backlog for Vega

2015 2016

Backlog for Ariane 5

(1) MPL: Multiple payload

Predictable production revenues for the next three and half years from backlog

MPL(1)

ECASingle

PLGTO

ESGalileoMEO

ECASingle

PL GTO

ECADouble

PLGTO

ESGalileoMEO

2 4

ECADouble PL

GTO

6

Flown Contracted26

2014

ECADouble

PLGTO

5

ECASingle

PL GTO

1

ECADouble

PLGTO

ESGalileoMEO

Total backlog : 9 Launchers

The signature of an additional order of 10 launchers is

expected beginning 2017

The signature of an additional order of 18 launchers is

expected beginning 2017 ECA

DoublePL

GTO

ECADouble

PLGTO

ECADouble

PLGTO

ECADouble

PLGTO

Total backlog :15

…

DRAFT

27

Vega E, to capture the full SSO market in single/double launch, with an increased versatility

Vega C , with its multi-satsdispenser for small satellites, and increased performance to capture radar satellites market segment

Ariane 6, in its two versions, to address all types of missions in MEO and GTO, also filling the gap left by Soyuz, with a competitive price

The product roadmap for the future

DRAFT

Growing and changing industry: Avio ideally positioned

28

Sector prospects

Institutional demand expected to continue while commercial demand to grow exponentially1

Positioning

From GEO to LEO, from large to small satellites (90% of satellites in 2024 will be small sats, pushing exploitation of LEO orbits)2 Launch vehicles to adapt offering: multi-satellite dispensers and multi-orbit capable launch vehicles3

Impeccable reliability increasingly requested by customers4

Launch industry to face a bottleneck: satellites / launchers ratio to increase from 1.3x (2010 – 2015) to 2.4x (2016 – 2020)5

DRAFT

29

4. Technology & Operations

DRAFT

Avio has a leadership across three core technologies

Extensive know-how and proprietary technologies

30

Solid propulsion System integration

Insulated motor case Launcher integration

Proprietary solutions on filament winding and thermal

protections

Liquid propulsion

Vulcain/Vinci LOx TP, LOx-LNG engine

Application of additive layer manufacturing, breakthrough

LOx-LNG engine design

Fully independent in launcher integration including campaign

Over the years Avio has constantly been at the edge of developing proprietary core technologiesfor space launch systems

Its core set of technologies enjoy patent protection and keep improving

DRAFT

Mastering the complexity of launching

31

System integration and avionic skills

Multi-physics by a large simulation factory and strict compliance to test-as-you-fly doctrine

GNC algorithms and software Propulsion

Flight mechanicsTrajectoriesDynamic, environment and loads

Stage thermal control

DRAFT

Vega: a unique launch vehicle

Reliability, precision, versatility and ability to adapt are Vega's core features

Highest level of versatility in adapting to multiple payloads and exploiting engine technology to allow for multi-orbit dispatching

One of 2 launch systems worldwide with proven in-orbit maneuvering capabilities

100% reliability; first launch system in history with such a track record after 7 launches

Propelled phase

Coasting phase

Earth’s atmosphere

800km

200km

5min 1hr 2hrs

Propulsion stages separations

Fairing separation

Upper stage maneuvers and satellite injection into orbit

32

DRAFT

Recent case study: VV07

15th September 2016

7th consecutive successful launch

Lift-off on-time by the millisecond,mission lasted 1h 42m 59s

5 satellites dispatched on differentorbits

4 for Terra Bella (Google)

1 for Peruvian space agencyCONIDA

Dispatching well within distancetolerance limits (180m versus 1km)

Source: Arianespace data

4 SkySat satellites for Google (Terrabella)

PerùSAT-1 satellite for Peruvian space agency CONIDA

US and international commercial customers begin to enjoy sustained track record and unique performance

Orbited satellites

33

DRAFT

Avio at the heart of the European space industry evolution

New products afforded by modular technology approach

34

Vega C >2,400kg LEO Vega E

>3,000kg LEO + MPL extensionVega1,450kg LEO 2019 2024

Common BlockP120C

the brick and pillar for next gen

ESA vehicles

New upper stage:

unprecedented versatility

2020

Ariane 6 Up to 11t GTO (A64)

Zefiro 40Consolidate and improve

a winning concept

Ariane 5up to 10,5t GTO

LEO Reference: Polar Earth Orbit @ 700 km

DRAFT

Avio is part of the EU critical space infrastructures

Source: Company information 35

Turin •LOx&LNG turbo-pump

design, manufacturing and assembly

Paris •Management and design

of SRM for development and production programs

KourouCity

Kourou European Spaceport (CSG)• Solid rocket motor casting (Regulus)

and integration (Europropulsion)• Vega integration and launch

operations (Mobile Gantry) Airola •Carbon Epoxy Prepreg manufacturing and testing

Colleferro•Solid rocket motor design,

production•System activities, mission

design•Flight Software Factory•Liquid propulsion design,

production,•Stage integration (Vega)•Test center

35

DRAFT

Main orbital spaceports worldwide

36

Limited number of spaceports worldwide

Kourou Spaceport (Guiana)

Existing spaceport

4

1

4

4

2

1

Operating spaceports

Guaranteed access toEU spaceport

DRAFT

Unique access to the only European Spaceport

Spaceport (Kourou)• Solid rocket motor casting and integration• Vega integration and launch operations

Full control from production to launch

Equipment integration

Segmentassembling

StagedeliveryCasting

37

Launch Vehicle IntegrationPropellant Preparation

70%30%

50%50%

60%40%

DRAFT

38

5. Future Prospects

DRAFT

Strong additional growth potential

Advanced Vision Into Orbit

39

Fresh capital from Space2 (approx. € 66m) will enable a further acceleration of Avio’s growthpotential

New product development• Further broadening of product and

technology portfolio

New markets• Potential access to new markets

and new business segments

Consolidated existing market leadership• Greenlight Vega to 3 launches

per year (ready four 4)• Maintaining key presence in

Ariane, the world leading commercial launch system

Industrial supply chain consolidation• Insourcing of critical industrial

supplies to consolidate margins and reduce dependency from external suppliers

Efficient operations on ground infrastructure• Streamlining of ground

segment operations to improve productivity and flight readiness as well as launch cadence with Avio’s partners

DRAFT

40

6. Financials

DRAFT

47%48%

4%Vega

Ariane

Tactical

2013A 2014A 2015A

Stable revenue generation

Stable revenue generation and increasing backlog over last years

Total net revenues and backlog (€m)

2015A net revenue breakdown by activity2015A net revenue breakdown by business

336

679

905

232 224257

Net revenues Backlog

6M2015A 6M2016A

649

119

835

119

41

24%

76%

Research &Development

Production

DRAFT

14.1 14.17.5 7.4

6M2015A 6M2016A

12%

37.9 39.4 35.524.7 26.3 22.2

2013A 2014A 2015A

Steady profitability

Steady profitability over last years both at EBITDA and Net Income level

EBITDA and EBIT Adjusted (€m)(1)

Net Income Adjusted (€m) (2)

Net income adj. Margin on net revenues

(1) Main adjustments related to non recurring items and investors’ fees (2) In addition to EBITDA adjustments, main adjustments are related to interests on Shareholders loans and exceptional tax items

12% 12%7% 5% 3%

16% 18% 14%

2014 higher margin attributable to cyclical factors mainly related to Vega development contracts

42

11% 12% 9%6%

12%

6%

EBITDA Adj. EBIT Adj. Margin on net revenues

FY15vsFY14 mainly driven by EBITDA and interests on bank financing HY16vsHY15 due to interests on bank financing (since May 2015)

27.6 26.4 17.5

2013A 2014A 2015A

6.4 3.76M2015A 6M2016A

DRAFT

Light asset base due to Goodwill resulting to past LBO transaction (c. 65% of Net Invested Capital) and exclusive free use(comodato) of assets, not included in the Net Invested Capital, belonging to European Space Agency

Light asset base

High level of returns on capital employed

Net invested capital and ROCE Adjusted

43

20% 22% 19%ROCE Adj. (%)(1)

(1) Calculated as EBIT Adjusted on relevant net invested capital, i.e. net invested capital excluding € 221m of goodwill related to space business

Currently includes €96m financing at c. 4% annual interest rate connected to

past LBO capital structure

€m

Sources

Net debt c. € 40mEquity c. € 305m

345

124

DRAFTNet working capital

Structurally favourable net operating working capital position

Evolution of net operating working capital (€m)

Advances to suppliers

Net Work In Progress

Net Operating Working Capital

Trade payables

Inventories

In line with industry practices, customers’ advances very importantin financing operating working capital

44

DRAFT

Adjusted EBITDA

Operating cash flow generation

OCF € 24m

Cas

h ab

sorp

tion

OCF € 46mFY2014

Cas

h ge

nera

tion

FY2015

36

10(4)

29

0

Operating cash flow (€m)

CapexΔ Other

Assets/Liab+ Provisions

Δ net op. working capital

45

Operating Cash Flow

Adjustmentsto EBITDA

DRAFT

46

7. Transaction overview

DRAFT

Current shareholding structures

Ordinary Shares: 400,000,000 Cinven: global Private Equity fund Leonardo: industrial minority partner Viasimo: investment vehicle of previous managers

Ordinary Shares: 30,000,000

Special Shares: 800,000

− No entitlement to ordinary dividends, no voting rights

− 4.5-to-1 conversion in ordinary shares at certain triggers

Market Warrants: 15,000,000

− Strike price: € 9.5− 1 warrant every 4 shares delivered to shareholders

at IPO – Currently listed− 1 warrant every 4 shares to be assigned @ BC

Sponsor Warrants: 1,600,000

− Strike price: € 13 – Cash exercise

47

81%14%

5% Cinven

Leonardo

Viasimo

97%3% Market investors

Space Holding

DRAFTImplied metrics of the transaction

Approach: Net Asset Value Approach: DCF and multiples

Reference valuation date: 1st January 2016 (“Locked Box mechanism”)

(1) Based on net debt as of 31-Dec-15 of € 34.0m, book value of financial receivables vs Termica Colleferro of € 6.4m, book value of minority interests of € 8.2m, book value of associates of € 5.2m, book value of provisions for risks and employee benefits € 38.3m, 50% of the book value of deferred tax

assets of € 28.4m, contractual leakages of € 7.3m48

Space2 NAV per share of € 10 per share at Business Combination

Valuation approach Valuation approach

Purchase Price: € 159.7m

Reference bridge to Enterprise Value(1): € 47.8m

Implied Enterprise Value: € 207.5m

Implied multiples on 2015 financials: 2015 adjusted EBITDA multiple: 5.8x 2015 adjusted EBIT multiple: 9.3x 2015 adjusted P/E multiple: 9.1x

Transaction data Transaction data

DRAFTKey transaction elements(1)

Total net cash contribution into Avio of c. € 66m

3 subsequent steps, all occurring by merger completion

Demerger

A

Acquisition

B

Merger

C

Partial demerger of cash not utilized for the acquisition into Space3, net of cash utilized for withdrawals

Space2, Leonardo and Management acquire respectively a 53%, 27% and 6% interest in Avio from financial investors (Cinven and Viasimo)

Merger by incorporation of Avio into Space2

Avio shareholders(2)

receive new Space2 shares in exchange for Avio shares

(1) Base Case(2) Excluding Space2 for its interest in Avio acquired under B

49

DRAFT6 Demerger(1)A

Space2 is equally split through a proportional demerger

Ordinary shares, special shares and market warrants will be split proportionally(3)

50

DEMERGER

(1) Base Case(2) Not including IPO costs and expenses incurred in up to Business Combination

(3) In case of withdrawal, ordinary shares and special shares will be split proportionally whereas market warrants will be split 1:1 (i.e. 50% / 50%)

Cash: € 308m(2)

NAV: € 10 p.s.

Cash: € 154m(2)

NAV: € 10 p.s.

3

Cash: € 154m(2)

NAV: € 10 p.s.

DRAFT6 Acquisition(1)

Purchase Price for 85.68% stake of Avio equal to c. € 136.8m (100% Purchase Price to c. € 159.7m)

Space2 acquires a 53% interest in Avio for a total acquisition cost of c. € 84.9m

Leonardo acquires a 27% interest in Avio for a total acquisition cost of c. € 42.9m

The Management acquires a 6% interest in Avio for a total acquisition cost of c. € 9.0m

Transfer of shares completed simultaneously with the execution of the Deed of Merger

(1) Base Case

51

B

DRAFT6 Merger(1)C

Merger by incorporation of Avio into Space2

The resulting company assumes the name of Avio

Tender offer threshold set at 25%

Avio price per share equal to € 0.3992, corresponding to a Purchase Price for 100% of € 159.7m

Space2 price per share equal to € 10.0

The exchange ratio of newly issued Space2 ordinary shares for Avio ordinary shares, is set as follows:

€ 0.3992 / € 10.0 equal to an exchange ratio of 0.0399x

52

(1) Base Case

€ 66m(1) additional cash for BP growth acceleration

68% 4%

28%

Resulting shareholders at Business Combination

Free float

Implied equity value

~ € 235m

NAV ~ € 54m(2)

Alternative scenarios at business combination

Implied equity value

~ € 233m(1)

NAV ~ € 154m(2)

Scenario 1:

No withdrawal Scenario 2:

Maximum withdrawal

(1) Estimated multiplying € 10 p.s. to the number of outstanding shares at Business Combination (including conversion of the first tranche of special shares)

(2) Not including IPO costs and expenses incurred in up to Business Combination

53

3 3

Withdrawal price set equal to € 9.893 per share

Transaction timeline

54

1st December

Within the first

half of March

Space2’s Shareholders Meeting to approve Avio as the target for the

Business Combination

Fulfillment of all conditions precedent provided under SPA, including the

authorization of the French Government

Upon listing of Space3 on the MIV, effectiveness of the Demerger

After 5 days from the effective date of the Demerger: closing date and

execution of the deed of Merger

Upon obtainment of Consob’s nulla-osta, listing of Avio’s shares on the

regulated market, possibly STAR segment

27th December –

10th January Period for the exercise of the Withdrawal right by Space2 shareholders

Signing of the SPA and ancillary documents, calling of the general

meeting of Space2 19th October

Oc

tob

er

De

ce

mb

er

Ma

rch

20

16

2

01

7

Ja

nu

ary

23rd December Space2’s Shareholders Meeting to approve the Demerger and the Merger

DRAFTProposed new Board of Directors

Shareholder agreement between Space2 andLeonardo in place to define the first Board ofDirectors, in charge for 3 years:

Giulio Ranzo confirmed as CEO

Space Holding will name the Chairman

Space2 will name 4 directors, of which 3independent

Leonardo will name 3 directors, of which 1independent

All decisions of the Board of Directors to be taken by asimple majority quorum

Lock-up obligations for key shareholders

Space Holding: 12-month lock up

Leonardo: 24-month lock up

Avio Management: 24-month lock up

Board of Directors will consist of 9 members, of which 4 independent

55

DRAFT

Avio: your Space company in short

56

Very attractive market developments

Extremely solid competitive position

A highly qualified and committed management team

Strong and market-oriented ownership structure

Substantial opportunity for growth and further value creation

A unique investment for our Space2 shareholders

57

Appendix

58

Income Statement 2013-2015, H1 2015-2016

Consolidated Income Statement (€'000) 2013 2014 2015 H1 2015 H1 2016

Revenues 232,070 224,460 279,227 118,562 127,892

Change in inventory (1,652) 1,464 764 3,559 2,599

Other operating revenues 6,180 9,072 9,119 2,280 2,867

Raw material costs (63,241) (64,680) (83,461) (36,198) (43,100)

Service costs (99,472) (92,426) (123,140) (52,505) (53,015)

Personnel costs (49,268) (51,600) (53,894) (26,480) (29,474)

D&As (17,342) (17,157) (17,399) (8,628) (8,703)

Other operating costs (14,008) (5,191) (9,160) (1,832) (1,806)

Change in equity investments accounted with net equity method (operating) 2,311 1,970 1,893 781 1,270

Capitalised costs 5,506 9,907 6,558 3,576 4,154

EBIT 1,083 15,818 10,508 3,115 2,685

Financial income 1,809 2,453 2,272 1,607 298

Financial expenses (4,047) (12,446) (5,604) (2,151) (3,238)

Net financial income / (expenses) (2,238) (9,993) (3,332) (544) (2,940)

Change in equity investments accounted with net equity method (financial) - - (2,799) (2,461) -

Other income / (expenses) relating to equity investments 979 48 - - 0

Net income / (expenses) relating to equity investments 979 48 (2,799) (2,461) 0

Net income before taxes and discontinued operations (176) 5,873 4,378 110 (255)

Taxes (12,224) 1,974 986 1,673 (1,192)

Net income from continued operations (12,399) 7,847 5,364 1,784 (1,447)

Net income from discontinued operations after tax 1,290,062 (1,349) - - -

Net income 1,277,663 6,498 5,364 1,784 (1,447)

- of which attributable to Group's shareholders 1,276,669 5,554 4,589 1,818 (1,560)

- of which attributable to minorities 994 944 775 (35) 112

59

EBIT and EBITDA adjustments

(1) Includes non-recurring provisions, due diligence costs and costs related to other extraordinary activities

(2) Related to the Tax assessment on the registration tax (imposta di registro), mortgage tax (imposta ipotecaria) and cadastral tax (imposta catastale), in the context

of the 2013 sale of the Aeroengine business to General Electric, for which there is a contractual indemnity to the benefit of Avio

(1)

(2)

(2)

Adjustment to EBIT and EBITDA (€'000) 2013 2014 2015 H1 2015 H1 2016

A EBIT reported 1,083 15,818 10,508 3,115 2,686

B Total non recurring costs / (income) 14,017 4,751 6,464 1,727 2,134

- Personnel incentives and reorganization costs 1,426 490 2,703 361 111

- Non-recurring legal and fiscal advisory costs 7,211 1,735 2,154 900 1,596

- Expenses related to environmental intervents 3700 104

- Personnel costs related to cash-settled share-based payment plans and other personnel costs 658 730 1,015

- Accruals for tax risks 221 167 41 58,220

- Indemnity related to tax provisions (58,220)

- Other non recurring costs / (income) 1,022 1,471 425 425 427

C Investor Fees 1,196 1,179 1,167 585 588

D Other non recurring expenses 4287 510 0 - -

E Amortization of customer relationship assets 4,084 4,084 4,084 2,042 2,042

F Adjusted EBIT A+B+C+D+E 24,667 26,342 22,223 7,469 7,450

G D&As 13,258 13,073 13,315 6,586 6,661

Adjusted EBITDA F+G 37,925 39,415 35,538 14,054 14,111

60

Balance Sheet 31st December 2013 - 30th June

2016

Assets (€'000) 31/12/2013 31/12/2014 31/12/2015 30/06/2016

Non current assets

Tangible assets 46,181 47,640 50,224 52,021

Real estate investments 2,486 2,589 2,693 2,700

Goodwill 221,000 221,000 221,000 221,000

Intangible assets 97,162 95,234 88,786 87,154

Investments 8,162 8,032 5,161 4,537

Financial assets 6,040 6,200 6,400 7,440

Tax deferred assets 42,580 54,490 56,793 56,413

Other non resurring assets 13,941 11,397 8,633 67,371

Total non recurring assets 437,553 446,583 439,691 498,636

Current assets

Inventory 64,358 76,717 109,147 129,299

WIP 27,635 41,849 64,562 54,429

Trade receivables 10,793 6,927 8,344 5,072

Current financial assets 1,265,457 21,454 130 1

Cash and cash equivalents 57,383 165,232 70,378 72,717

Current tax assets 16,080 29,970 43,270 46,723

Other current assets 20,377 12,155 9,697 11,758

Total current assets 1,462,083 354,304 305,528 319,999

Total assets 1,899,636 800,886 745,219 818,635

Equity and liabilities (€'000) 31/12/2013 31/12/2014 31/12/2015 30/06/2016

Net equity

Share capital 40,000 40,000 40,000 40,000

Share premium reserve 73,576 73,576 73,576 73,576

Other reserves (2,037) (2,526) (3,319) (3,732)

Net income frow previous years 72,524 400,193 185,760 190,348

Net income of the year 1,276,669 5,554 4,589 (1,560)

Total net equity of the Group 1,460,732 516,797 300,605 298,632

Minorities 8,687 8,526 8,223 6,733

Total net equity 1,469,419 525,323 308,828 305,365

Non current liabilities

Financial loans 139,929 - 91,272 87,994

Provisions for employees 11,333 11,320 10,804 11,352

Provisions for risks 23,754 19,342 19,278 18,027

Deferred tax liabilities 302 252 - -

Other non recurring liabilities 56,795 55,210 55,908 118,053

Total non recurring liabilities 232,113 86,124 177,261 235,427

Current liabilities

Current financial liabilities 27,690 7,919 8,767 18,079

Portion of non current fin. loans - - 4,439 6,375

Provisions for risks 16,488 19,958 8,170 6,859

Trade payables 48,623 51,641 46,872 82,899

Advances from customers for WIP 28,270 86,876 172,878 145,376

Current tax liabilities 46,831 6,620 2,050 962

Other current liabilities 30,202 16,426 15,954 17,293

Total current liabilities 198,105 189,439 259,130 277,843

Total liabilities 430,217 275,563 436,390 513,270

Total liabilities and net equity 1,899,636 800,886 745,219 818,635

61

Net debt 31st December 2013 - 30th June 2016

Net debt (€'000) 31/12/2013 31/12/2014 31/12/2015 30/06/2016

(A) Cash and cash equivalents 57,383 165,232 70,378 72,717

(B) Current financial assets 1,265,457 21,454 130 1

(C) Total current financial assets (A+B) 1,322,840 186,686 70,508 72,718

(D) Financial derivatives - - (368) (429)

(E) Current financial loan (27,690) (7,919) (8,399) (17,650)

(F) Total financial liabilities (D+E) (27,690) (7,919) (8,767) (18,079)

(G) Current portion of non current financial debt - - (4,439) (6,375)

(H) Current financial debt (F+G) (27,690) (7,919) (13,206) (24,454)

(I) Net current debt (C+H) 1,295,150 178,767 57,302 48,264

(J) Non current financial loans (139,929) - (91,272) (87,994)

(K) Net debt (I+J) 1,155,221 178,767 (33,970) (39,730)

(L) Non current financial assets 6,040 6,200 6,400 7,440

(M) Net debt adjusted (K+L) 1,161,261 184,967 (27,570) (32,290)

62

Cash flow 2013-2015, H1 2015-2016

Cash flow statement (€'000) 2013 2014 2015 H1 2015 H1 2016

Operating activities

Net income from continuing operations (13,649) 7,847 5,363 1,783 (1,447)

+ Taxes 13,353 (1,973) (986) (1,674) 1,192

+ Costs / (income) related to change in equity investments (979) (608) 906 1,680 (1,270)

+ Financial costs / (income) 6,538 11,135 3,332 661 2,808

+ D&As 17,616 17,157 17,399 8,627 8,702

+ Costs / (income) related to disposal of tangible assets (7) (343) - - -

- change in reserves due to echange rates (before tax) 1,565 - - - -

- Δ provisions for risks (43,701) (943) (5,067) (4,462) (2,561)

+ Dividends from controlled companies - 949 1,980 0 1,894

- Δ provisions for employees 287 (687) (472) (83) 195

- Δ inventory (629) (12,359) (32,430) (28,443) (20,152)

- Δ work in progress (10,672) 44,391 63,289 15,217 (17,369)

- Δ trade receivables (3,633) 3,866 (1,417) 2,490 3,272

- Δ trade payables (4,257) 3,018 (4,769) 4,628 36,027

- Δ other current and non current assets (8,078) (3,123) (8,078) (3,189) (64,298)

- Δ other current and non current liabilities (20,900) (21,553) (4,346) (1,251) 62,369

Cash flow from operating activities (67,146) 46,774 34,704 (4,016) 9,362

- Taxes (18,742) (43,801) (8,486) (4,243) (737)

- Financial expenses - - (3,057) (661) (2,399)

Net cash flow from operating activities (A) (85,888) 2,973 23,161 (8,920) 6,226

Investing activities

Tangible asset and real estate investments (3,360) (7,018) (8,286) (1,271) (4,755)

Intangible asset investments (6,367) (9,808) (5,367) (3,590) (4,119)

Non cosolidated financial investments (102) - - - -

Bond investments (1,150,000) - - - -

Disposal of tangible, intangible and financial assets 1,923,197 1,150,377 - - -

Dividends from non consolidated investments 979 - - - -

Other cash items from investing activities 17,583 (1,393) - - -

Cash flow from investing activities (B) 781,930 1,132,158 (13,653) (4,861) (8,874)

Financing activities

Financial loan drawdown - - 100,000 100,000 (1,750)

Financial expenses related to loan drawdown - - (4,875) (4,875)

Financial loan reimbursement (820) (151,064) - (4,519) 9,251

Capital and share premium reserve increase - 1,030 - - -

Dividends distributed to Group's shareholders (555,074) (949,000) (220,000) (176,516) -

Dividends distributed to minorities - (1,080) (1,080) (1,080) (1,602)

Financial loans to related companies (2,000) (1,400) (200) - (1,040)

Change in the escrow account related to the disposal of GE Avio S.r.l. (115,000) 93,695 21,313 21,313 -

Change in net equity attributable to minorities (896) - - - -

Other changes of financial assets and liabilities (9,281) (19,463) 480 92 129

Cash flow from financing activities (C) (683,071) (1,027,282) (104,362) (65,585) 4,988

Cash flow of the year (A+B+C) 12,971 107,849 (94,854) (79,366) 2,340

Cash and cash equivalent - Beginning of period 44,412 57,383 165,232 165,232 70,378

Cash and cash equivalent - End of period 57,383 165,232 70,378 85,866 72,717