1. Guido Corbetta Chair AIdAF-EY of Strategic Management in Family Business In memory of Alberto Falck Helsinki, 19 th September 2014 Long-lasting Family Business

2. Family Business is the most diffused form of capitalism in many countries Country % of family businesses Large sized or listed family businesses BRASIL90% *70% of large sized groups USA 80-90% **35% of Fortune 500 companies CHINA85% *37% of listed companies FRANCE83% 40% of the 250 biggest companies ITALY82%58% of large sized groups GERMANY79%50% of listed companies INDIA67%67% of listed companies * Non listed companies. * * North America businesses. - 2 -

3. Family Business may outperform non family businesses +133% +65% Share price (Index: June-2003=100) - 3 -

4. Cumulated revenues growth Source: AIDA database Italian family companies Italian non family companies (Index: 2001=100) Family Business may outperform non family businesses - 4 -

5. (*) Average of the relevant industries based on all the limited companies in the AIDA database Italian family companies Italian non family companies* Source: AIDA database Return on Investment Family Business may outperform non family businesses - 5 -

6. Family businesses may last for more than … 100 years (1/2) - 6 -

7. Family businesses may last for more than … 100 years (2/2) - 7 -

8. Family businesses may last for more than … 200 years - 8 -

9. GenerationΔ ROIΔ ROEΔ Growth First generation+0,6+2,1+1,5 Second Generation=0,0-0,4= 0,0 Third and following generations -0,8-2,5-2,1 Data processing is related to the period 2000-2008 Source: Aida database But Italian data confirm that the first generation builds, the second maintains and the third... - 9 -

10. Age of the leader %Δ ROIΔ ROEΔ Growth Less than 40 years7,5%-0,4+2,4+1,5 40-5020,2%+0,3+1,2+0,9 50-6026,0%-0,2-0,7+0,5 60-7027,7%-0,2-0,6-0,9 More than 70 years18,6%+0,4-1,1-1,2 And Italian data confirm that some experience is good, too much is bad - 10 - Data processing is related to the period 2000-2008 Source: Aida database

11. For all FBs: Strong resistance to change of the senior entrepreneur and managers Nepotism Conflicts between family members Sub-optimal strategies (control versus growth) Mainly for SME FBs: Poor strategic management processes Ambiguous organizational structure and systems We can conclude that there are some weaknesses and traps of family ownership - 11 -

12. How to overcome weaknesses and traps ? John Elkann’s ideas Groups like ours typically go through three stages in their development: a time of strength, a time of privilege and a time of vanity. For me the first is the only one that counts. Giovanni Agnelli - 12 -

13. Conservative capital structure (little/no debt) Frugality Diversification How to overcome weaknesses and traps ? John Elkann’s ideas - 13 -

14. An ownership capable of supporting the enterprise with “patient” capital:   an owner family is a positive factor for an enterprise when it’s capable of balancing its own short-term interests and the enterprise’s long-term development   a conception of ownership that sees the enterprise as a precious asset which, whilst being the property of a few, must be managed with a deep sense of responsibility towards all stakeholders and not just the majority shareholders How to overcome weaknesses and traps ? Ermenegildo Zegna’s ideas - 14 -

15. A corporate leadership capable of effective entrepreneurial change:   a selection process that strictly avoids the risk of nepotism Professional governance enabling talented non- family (and family) directors and managers to be attracted and retained:   having a clear distinction of roles and responsibilities between owners, directors and managers. In this context, the make up of the board of directors with independents deserves special attention - 15 - How to overcome weaknesses and traps ? Ermenegildo Zegna’s ideas

16. … Vision … A bit of luck … A lot of energy - 16 - How to overcome weaknesses and traps ? Ermenegildo Zegna’s ideas