Generalfinance

Investor Presentation • Apr 22, 2024

Disclaimer

This presentation has been prepared by Generalfinance and contains certain information of a forward-looking nature, projections, targets, and estimates that reflect Generalfinance management's current views related to future events. Forward-looking information not represent historical facts. Such information includes financial projections and estimates as well as related assumptions, information referring to plans, objectives, and expectations regarding future operations, products, and services, and information regarding future financial results. By their very nature, forwardlooking information involves a certain amount of risk, uncertainty and assumptions so that actual results could differ significantly from those expressed or implied in forward-looking information. These forward-looking statements have been developed from scenarios based on a set of economic assumptions related to a given competitive and regulatory environment.

There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of futures performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise expect as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.

The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advise or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any State or other jurisdiction of the United States or in Australia, Canada or Japan or any jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form apart of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.

Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Ugo Colombo, in his capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects the Generalfinance documented results, financial accounts and accounting records. Neither the Company nor any of its or their respective representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it.

Agenda

• Main 1Q 2024 Results
• Focus on Asset Quality and Digital Factoring
• 1Q 2024 Results: Balance Sheet, P&L, Funding and Capital
• Closing Remarks
• Annexes

Main 1Q 2024 Results

Strong and long term oriented shareholder base

Turnover witnessing a strong growth story

2024 annual growth rate (23%) well above the market average (+3%)

Net Income: high profitability from the operations

Profitability level very strong, in line with 2024 Budget

Focus on Asset Quality and Digital Factoring

A low risk model with a best in class asset quality

Cost of Risk has been computed as Credit Risk Adjustments / Annual Disbursed Loans;

Gross NPE («Non-Performing Exposure») Ratio has been computed as Gross NPE / Gross Loans to Customers

Default Rate and NPE Ratio constantly improving

Default rate: NPE infow of the year / loans disbursement flow of the year Assifact NPE Ratio (%) as at December 31, 2023

Collection performance: a strategic delivery to our Customers

Generalfinance boasts a portfolio quality, both in terms of Payment Conditions and Payment Delays, better than the rest of the market

Company's DSO expressing a very low duration of the portfolio

A unique business model, leveraging the factoring features

The peculiarity of Generalfinance's business model is the choice of Seller–Debtor, where clients (Sellers) typically have a low credit rating (turnaround situation) while the Debtors underlying customer loans refer to a high credit rating (normally investment grade)

Notes: 1) Generalfinance data refers to March 31, 2024 (LTM); Assifact data refers to December 31, 2023; 2) Assifact data net of household debtors; 3) NewCo: New Company after the definition of the turnaraund plan

A strategic asset: the proprietary digital platform

1Q 24 Results: Balance Sheet, P&L, Funding and Capital

Main KPIs behind our business

Statement (€m) Income	2021A	2022A	2023A	CAGR '21-'23	3M23	3M24	YoY%
Interest Margin	6 2	3 7	9 0	20 0%	8 1	2 6	50 0%
Commission Net	17 7	23 6	27 2	0% 24	6 0	8 0	0% 32
Net Banking Income	23 9	30 9	36 2	23 0%	7 8	10 6	36 0%
adjustments write-backs for credit risk Net value /	(0 2)	(1 2)	(1 3)	2% 141	(0 1)	0 0	(143 5%)
Operating Costs	(9 8)	(13 2)	(12 9)	15 0%	(3 2)	(3 3)	3 2%
Profit Net	9 5	10 9	15 1	26 2%	2 9	4 9	66 1%
(€m)	2021A	2022A	2023A	CAGR '21-'23	3M23	3M24	YoY%
Turnover	1 402 9 ,	2 009 4 ,	2 559 3 ,	1% 35	506 9	621 6	6% 22
Disbursed Amount	118 1 5 ,	674 0 1 ,	2 161 4 ,	39 0%	411 7	481 7	0% 17
LTV	7% 79	3% 83	5% 84	9% 2	2% 81	5% 77	6% -4
Pro-solvendo LTV	78 6%	81 6%	79 7%	0 7%	79 4%	73 4%	7% -7
Net Banking / (%) Income Average Loan	9 6%	8 7%	8 5%	(5 8%)	8 5%	10 1%	18 7%
Margin Banking (%) Interest / Net Income	0% 26	5% 23	8% 24	(2 4%)	5% 22	8% 24	3% 10
Cost Ratio Income	40 9%	42 7%	35 7%	(6 5%)	41 3%	31 4%	(24 1%)
(%) ROE	0% 42	7% 23	3% 29	(16 4%)	9% 22	4% 29	4% 28
Balance Sheet (€m)	2021A	2022A	2023A	CAGR '21-'23	3M23	3M24	YoY%
Cash Cash Equivalents &	33 5	43 7	21 7	(19 6%)	62 0	106 3	71 4%
Financial Assets	321 0	385 4	462 4	20 0%	342 9	372 6	8 7%
Other Assets	10 8	14 7	15 9	21 2%	14 6	16 2	11 1%
Total Assets	365 3	443 8	500 0	0% 17	419 5	495 1	18 0%
Financial Liabilities	314 6	368 4	409 4	1% 14	335 5	393 4	2% 17
Other Liabilities	18 7	18 6	24 2	13 9%	29 7	30 4	2 2%
Liabilities Total	333 3	387 0	433 6	1% 14	365 2	423 8	0% 16
Shareholder's Equity	32 0	56 8	66 4	44 2%	54 3	3 71	31 4%

A very simple balance sheet with a strong capital position…

RWA Density: RWA / Total Asset

Note: CET1 Ratio and Total Capital Ratio calculated taking into account net profit of the Q124, net of total dividends to be distributed (payout 50% of net profit)

…coupled with a robust funding and liquidity position

Liquidity Position: excluding pledge accounts amounting to 6.1 €mln

Use of Funding: sum of financial liabilities (red) and refactoring non-recourse transactions (orange)

Securitization: included only for an amount equal to the credit lines approved by banks

Net interest Income fully «hedged» against interest rates volatility

Notes: (1) Calculated as interest expense / average financial liabilities (current and previous year); (2) Spread: average interest rate on seller – average cost of funding (3) (Interest income + delayed payment Interest + other interest)/ average loans (current and previous year); (4) Calculated as Net Interest income/ average loans (current and previous year)

Net commission income, the primary source of profitability

▪ Net Commission Income ~75% of the Net Banking Income

▪ Commission Income/Turnover improving YoY, even with the different mix of the portfolio (Corporate Sellers vs Retail Sellers)

▪ Stable commission expense rate thank to optimization of insurance costs and banking fees

Cost / Income reflecting the efficiency of the operating machine

Cost income ratio 2022 Adjusted (net of IPO costs): 37.7%

Closing Remarks

Closing Remarks

2024 first 3 months of the year confirms a growing trend, in line with full year budget :

• Profitability level showing significant growth: net profit up +66%
• Excellent asset quality confirms our conservative risk policy
• Further reduction of the cost income ratio, expected to drop again thanks to the very good operating leverage
• An updated organization oriented to risk control and business
• Macroeconomic evolution and more difficult environment for SME lending support our strategy

New steps ahead to further support our numbers:

• New sellers pipeline set to push a stronger growth ahead
• Robust and diversified funding structure to support future growth
• Strong Capital ratios (TCR > 15%) allowing a sound capital buffer for growth even exceeding strategic plan horizon
• Expanding Generalfinance abroad: further steps towards the conclusion of the analysis over foreign market
• Net Income 2024 guidance confirmed: >20M

Income Statement

Income Statement (€m)	3M23	3M24	YoY%
Interest income and similar income	5.4	9.3	73.5%
Interest expense and similar charges	(3.6)	(6.7)	84.9%
INTEREST MARGIN	1.7	2.6	50.0%
Fee and commission income	7.0	9.0	27.3%
Fee and commission expense	(1.0)	(1.0)	(0.3%)
NET FEE AND COMMISSION INCOME	6.0	8.0	32.0%
Net profi (loss) from trading	0.0	(0.0)	(100.5%)
Net results of other financial a/l measured at fv	0.0	0.0	-
NET INTEREST AND OTHER BANKING INCOME	7.8	10.6	36.0%
Net value adjustments / write-backs for credit risk	(0.1)	0.0	(143.5%)
a) Financial assets measured at amortised cost	(0.1)	0.0	(143.5%)
NET PROFIT (LOSS) FROM FINANCIAL MANAGEMENT	7.7	10.6	38.5%
Administrative expenses	(3.2)	(3.6)	12.5%
a) Personnel expenses	(1.9)	(2.1)	15.0%
b) Other administrative expenses	(1.3)	(1.4)	9.0%
Net provision for risks and charges	(0.0)	0.2	(7617.1%)
b) Other net provisions	(0.0)	0.2	(7617.1%)
Net value adjustments / write-backs on pppe	(0.2)	(0.2)	11.8%
Net value adjustments / write-backs on int. Ass.	(0.1)	(0.2)	53.9%
Other operating income and expenses	0.2	0.4	52.7%
OPERATING COSTS	(3.2)	(3.3)	3.2%
Gains (Losses) from equity investments	0.0	(0.0)	-
PRE-TAX PROFIT (LOSS) FROM CURRENT OPERATIONS	4.5	7.3	63.8%
Income tax for the year on current operations	(1.5)	(2.4)	59.3%
PROFIT (LOSS) FOR THE YEAR	2.9	4.9	66.1%

Balance Sheet

EMARKE SDIR
CERTIFIED

Balance Sheet (€m)	2023A	3M24	Var% YTD
Cash and cash equivalents	21.6	106.3	391.2%
Financial assets measured at fair value through p/l	0.0	0.0	28.9%
Financial assets measured at amortised cost	462.4	372.6	(19.4%)
Equity investments	0.0	0.0	(100.0%)
Property, Plan and Equipment (PPE)	5.0	4.8	(3.3%)
Intangible assets	2.6	2.8	7.2%
Tax assets	5.7	5.7	0.1%
a) current	5.1	5.1	0.1%
b) deferred	0.7	0.6	0.0%
Other assets	2.8	2.9	5.8%
TOTAL ASSETS	500.0	495.1	(1.0%)
Financial liabilities measured at amortised cost	409.4	393.4	(3.9%)
a) payables	376.8	350.6	(6.9%)
b) outstanding securities	32.6	42.8	31.1%
Tax liabilities	7.1	9.5	33.9%
Other liabilities	14.0	18.1	28.1%
Severance pay	1.5	1.4	(4.8%)
Provision for risk and charges	1.6	1.4	(10.0%)
Share capital	4.2	4.2	0.0%
Share premium reserve	25.4	25.4	0.0%
Reserves	21.6	36.7	69.7%
Valuation reserves	0.1	0.1	14.2%
Profit (loss) for the year	15.1	4.9	(67.6%)
TOTAL LIABILITIES AND SHAREHOLDERS'S EQUITY	500.0	495.1	(1.0%)

An organization oriented to risk control and business

Turnover breakdown vs system average 1/2

Generalfinance's Turnover data refers to March 31, 2024 Assifact's Turnover data refers to December 31, 2023

Turnover breakdown vs system average 2/2

HIGHER NUMBER OF DEBTORS PER SELLER TURNOVER - % CHANGE FROM PREVIOUS YEAR

0% 5% 10% 15% 20% 25%

Generalfinance's Turnover data refers to March 31, 2024 Assifact's Turnover data refers to December 31, 2023 1) Household debtors have not been included

0 20 40 60 80