Generalfinance

Investor Presentation • Apr 17, 2024

GENERALFINANCE GENERALFINANCE

1

Mid & Small Conference London

April 18, 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

• Generalfinance: Overview
• Factoring Market and Distressed Financing
• Digital, Low Risk Player
• Main 2023 Results
• Focus on Asset Quality and Digital Factoring
• 2023 Results: Balance Sheet, P&L, Funding and Capital
• Annex

Generalfinance: Overview

Long Standing Experience, Specialisation and Unique Positioning

Generalfinance: Overview

• ✓ Leading independent player in the white space of factoring for Distressed Italian SMEs, unserved by traditional banks, with no comparable companies
• ✓ Digital platform enables unique efficiency, knowledge of clients (competitive advantage) and better risk management
• ✓ Competitive advantage with tailor-made services to customers by using a unique in-house Scoring and Rating system and high sector diversification
• ✓ Excellent risk management due to digital platform data management and managerial proven experience
• ✓ Strong growth opportunities supported by sound capital and excellent funding structure
• ✓ Management with a solid experience in financial services to distressed companies, as well as significant skills in business development

In accordance with the interpretation provided for pro-solvendo transactions by the Bank of Italy following the 2022 inspection, in 4Q 2023 Generalfinance has applied a new definition of default (DoD) under which past due amounts are to be counted from the moment they exceed 1% of the relevant exposure (and are higher than 100 euro or 500 euro depending on the type of the counterparty), even if there is a buffer between the nominal value of the receivable and the company's exposure.

However, there was no impact in Q4 2023 deriving from the application of the new DoD, thanks to a proactive collection and credit management activities on certain exposures.

However, due to the new DoD, it is possible that past due amounts may experience greater volatility in the future.

Note: Turnover includes Future receivables ROE: annualized net income / (equity - net income) Cost Income Ratio: Operating costs / Net Interest and Other Banking Income Assifact NPE Ratio (%) as at September, 30 2023

Strong and long term oriented shareholder base

Shareholders' structure

Factoring Market and Distressed Financing

What is Factoring? (1/2)

What is Factoring? (2/2)

3

Source: Management

Leader in the high-growth distressed market segment

In the overall fast growing factoring market (turnover in Italy is expected to grow from € 290bn in 2023 up to €300bn in 2024) Generalfinance focuses on distressed sellers (UTP, forborne and past due) with a portfolio of performing debtors (in bonis)

Ranking of the Italian factoring market – 2023 (%) Sellers by Size – 2023

Notes: (1) range of values estimated in the last Assifact report «ForeFact» 24 n.2 Source: Assifact monthly and quarterly statistics

Addressable market

The worsening financial conditions of Italian companies expected in the next three-year period and the consequent increase in rates of deterioration could in fact drive a growth in the potential turnover of factoring to distressed companies by 8 percent annually, up to a market value of ca. 40 billion € by 2024

Vulnerable companies and new procedures

Digital, Low Risk Player

A strategic asset: the proprietary digital platform

An organization oriented to risk control and business

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 ("investment grade")

Notes: 1) Generalfinance data refers to December 31, 2023 (LTM); Assifact data refers to September 30, 2023; 2) Assifact data net of household debtors.

Collection performance: a strategic delivery to our Customers

Generalfinance boasts an excellent portfolio quality, both in terms of Payment Conditions and Payment Delays

Credit Process Overview

EMARKET SDIR
CERTIFIED

e as h P	1 2 Client Acquisition	3 Assessment & pre qualification	4 Proposal	Negotiation and underwriting	5 Credit decision	6 Credit management	7 Monitoring
es viti Acti	Acquisition of ▪ ▪ new Clients Collection of ▪ Client data to check sales, turnover, customers, suppliers, etc.) ▪ Generate Client ▪ Report ▪	Customer ▪ assessment (economic and financial analysis, AML checks, Summary Report Process ▪ assessment (for distressed procedures) Debtor assessment (data collection, creditworthiness check)	Overall file ▪ assessment (review of Summary Report ▪ and other relevant documents) Definition of a non-binding proposal, to be shared with the ▪ Client	Forwarding of proposal to Client Discussion of any amendments within the decision-making scope of the Sales Office Sign-off of terms and conditions by the Client	Additional data ▪ collection on the Assignor Review of ▪ Assignor/Assign ee assessment Credit decision ▪ on the maximum amount disbursable to Assignor and credit facilities to Debtors Signing of ▪ contract	Acquisition / ▪ assignment of receivables , prepayments and relevant process management Relationship ▪ management with Assignor and Assigned Debtors Collection ▪ management	Monitoring of ▪ factored receivables Monitoring of ▪ credit risk Management of ▪ outstanding receivables Monitoring of ▪ collections Reporting on ▪ information flows between corporate bodies
nt e m part e D	CCO ▪ ▪	CLO ▪	Credit Committee	CCO ▪ CLO ▪	Credit ▪ Committee	COO ▪	CLO ▪

Value proposition, distinctive features and value chain

Value proposition 1 Distinctive skills

Generalfinance offers its customers (mostly companies under financial stress) rapid and customized interventions for the financing of the working capital and trade receivables, covering the entire supply chain finance

"Revolving" relationship (LIR¹ at 24 months) in a predominantly "notification" mode and, where applicable, "acceptance" of the debt

• o Consolidated expertise throughout the entire process
• o End-to-end in-house valuation process, tailored to customer specifications
• o Strong risk reduction and diversification mechanisms
• o In-house-developed proprietary factoring platform to support business specifications
• o Fast operational processes and capability to provide bridge financing within turnaround processes

3

Generalfinance masters all the crossroads of the value chain

2

• o All operational steps and core activities are carried out internally by Generalfinance's dedicated structures
• o Generalfinance does not relies on external consultants to assess the creditworthiness of sellers and debtors but owns all the skills
• o The process is reinforced by credit insurance policies provided by Allianz Trade insurance company which, during the risk acquisition phase, performs an independent assessment of the assigned debtors, providing Generalfinance a feedback on the results of their assessment

Valuation Framework

Distressed Client
Scoring Components	DISTRESSED SELLER SCORING		DEBTOR SCORING/ SELLER'S PORTFOLIO		OPERATIONS'S FINAL SCORING
▪ Industrial market position and client portfolio Recovery plan credibility and sustainability of the repayment plan of the previous debt position Key Factors ▪ ▪ Standing and profile of the Seller's legal/financial advisors for Valuation ▪ Feasibility of the financial measures and presence of legal protections Presence of financial support (Equity/Debt) from investors/shareholders ▪
▪ Distressed Seller's ▪ quantitative score (green, Seller's ▪ Output yellow, red)		Debtor's score portfolio score	▪ Overall valuation + Debtor) Grant evaluated
			Performing Client
Scoring Components	PERFORMING SELLER SCORING		DEBTOR SCORING/ SELLER'S PORTFOLIO		OPERATIONS'S FINAL SCORING
Key Factors for Valuation	▪ ▪ Positioning in the sector ▪ ▪ Credibility of the management		Economic and financial analysis of the Balance Sheet/P&L/Cash Flow Statement Sustainability of the debt position (Debt-Service Coverage Ratio)
Output	▪ Performing Seller's quantitative score		▪ Debtor's score Seller's portfolio score ▪		Overall valuation (Seller ▪ + Debtor) To be Grant Reject evaluated

Risk reduction in Distressed Factoring

Given that the majority of Generalfinance's turnover is realized towards distressed Sellers, the Company can benefit from a reduction in risk, because of 3 main factors

Lower Credit Risk

• o Effects of insolvency proceedings on financial position (ex. credit write-offs)
• o Recovery and relaunch plan
• o Possible change in the Governance
• o Possible capital injection or new financing
• o Predeductibility (i.e., superpriority) of receivables arising from loans disbursed in execution of the plan and loans disbursed prior to the submission of the composition with creditors plan, respectively, if the conditions provided by the regulations are met

Lower Operating Risk

• o Court approval (arrangement with creditors, restructuring agreement)
• o Supervision by the court commissioner (arrangement with creditors)
• o Presence of high standing Financial Advisors and Legal Counsels
• o Management change

• o Financial assistance for the implementation of the agreement / plan / arrangement with creditors with exemptions from clawback actions
• o Authorization for bridge financing (in these cases, the risk of clawback actions is excluded on a de facto basis)
• o Factoring law and related protections (clawback actions regarding collections from assigned debtors)

Debtor Scoring

Macro score	Indicator	Assessment details
1	BRI	▪ Counterparty summary assessment considering the economic and financial aspects, the history of the company, the shareholders structure, etc.
	CGS	▪ Counterparty summary assessment considering the economic and financial aspects, the history of the company, the shareholders structure, etc.
Commercial score	Rating Score	▪ Counterparty summary assessment considering the economic and financial aspects, the history of the company, the shareholders structure, etc.
	Delinquency Score	▪ Probability of late payments over the next 12 months
	Failure Score	Company probability of default over the next 12 months ▪
2 Payments	Paydex	▪ Score on the counterparty's payment performance
score	Payline	▪ Score on the counterparty's payment performance
3 Credit	Grade Allianz Trade	▪ Degree of credit insurability
insurability score	DRA	▪ Degree of credit insurability ▪ Coface – in progress
4 Credit insurance	Insurance	Insurance partnership with Allianz Trade to insure up to 100% of the ▪ credit cross, starting from amounts above 30k

Main 2023 Results

Turnover witnessing a strong growth story

2023 annual growth rate (27%) significantly higher than the market average (+1%)

Net Income: high profitability from the operations

Improvement in profitability level in the last 3 years

Focus on Asset Quality and Digital Factoring

A low risk model with a best in class asset quality

DEFINITION OF DEFAULT (DOD)

In accordance with the interpretation provided for pro-solvendo transactions by the Bank of Italy following the 2022 inspection, in 4Q 2023 Generalfinance has applied a new definition of default (DoD) under which past due amounts are to be counted from the moment they exceed 1% of the relevant exposure (and are higher than 100 euro or 500 euro depending on the type of the counterparty), even if there is a buffer between the nominal value of the receivable and the company's exposure.

However, there was no impact in Q4 2023 deriving from the application of the new DoD, thanks to a proactive collection and credit management activities on certain exposures.

However, due to the new DoD, it is possible that past due amounts may experience greater volatility in the future.

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

2021 2022 2023

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 inflow of the year / loans disbursement flow of the year Assifact NPE Ratio (%) as at September, 30 2023

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

2023 Results: Balance Sheet, P&L, Funding and Capital

Main KPIs behind our business

Statement (€m) Income	2021A	2022A	2023A	YoY%	CAGR '21-'23
Interest Margin	6 2	3 7	9 0	23 6%	20 0%
Commission Net	17 7	23 6	27 2	4% 15	0% 24
Net Banking Income	23 9	30 9	36 2	17 3%	23 0%
adjustments write-backs for credit risk Net value /	(0 2)	(1 2)	(1 3)	8% 4	2% 141
Operating Costs	(9 8)	(13 2)	(12 9)	(1 9%)	15 0%
Profit Net	9 5	10 9	15 1	38 4%	26 2%
(€m)	2021A	2022A	2023A	YoY%	CAGR '21-'23
Turnover	1 402 9 ,	2 009 4 ,	2 559 3 ,	4% 27	1% 35
Allocated Amount	118 1 5 ,	674 0 1 ,	2 161 4 ,	29 1%	39 0%
LTV	7% 79	3% 83	5% 84	4% 1	9% 2
Pro-solvendo LTV	78 6%	81 6%	79 7%	-2 4%	0 7%
Net Banking / (%) Income Average Loan	9 6%	8 7%	8 5%	(2 3%)	(5 8%)
Margin Banking (%) Interest / Net Income	0% 26	5% 23	8% 24	4% 5	(2 4%)
Cost Ratio Income	40 9%	42 7%	35 7%	(16 4%)	(6 5%)
(%) ROE	0% 42	7% 23	3% 29	7% 23	(16 4%)
Balance Sheet (€m)	2021A	2022A	2023A	YoY%	CAGR '21-'23
Cash Cash Equivalents &	33 5	43 7	21 7	(50 5%)	(19 6%)
Financial Assets	321 0	385 4	462 4	20 0%	20 0%
Other Assets	10 7	14 7	15 9	8 0%	21 7%
Total Assets	365 3	443 8	500 0	12 7%	0% 17
Financial Liabilities	314 6	368 4	409 4	1% 11	1% 14
Other Liabilities	18 7	18 6	24 2	30 6%	13 9%
Liabilities Total	333 3	387 0	433 6	0% 12	1% 14
Shareholder's Equity	32 0	56 8	66 4	0% 17	44 2%

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 the net profit of 2023 and total dividends to be distributed (payout 50% of net profit)

…coupled with a robust funding and liquidity position

Note: Commercial Papers included in «Fixed Rate»

Liquidity Position: excluding pledged accounts equal to 5.0 €mln

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 slightly lower YoY, taking into consideration 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

Note: (1)Other net revenues and risk charges; (2) Operating Costs / Net Banking Income.

Operating costs 2022 Adjusted (net of IPO costs): 11.6 €mln

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

Annex

Income Statement

Income Statement (€m)	2022A	2023A	YoY%
Interest income and similar income	14,0	30,6	118,3%
Interest expense and similar charges	(6,7)	(21,6)	220,4%
INTEREST MARGIN	7,3	9,0	23,6%
Fee and commission income	27,3	31,7	15,6%
Fee and commission expense	(3,8)	(4,5)	17,2%
NET FEE AND COMMISSION INCOME	23,6	27,2	15,4%
Dividends and similar income	0,0	0,0	(100,0%)
Net profi (loss) from trading	(0,0)	0,0	(308,0%)
Net results of other financial a/l measured at fv	0,0	(0,0)	(117,5%)
NET INTEREST AND OTHER BANKING INCOME	30,9	36,2	17,3%
Net value adjustments / write-backs for credit risk	(1,2)	(1,3)	4,8%
a) Financial assets measured at amortised cost	(1,2)	(1,3)	4,8%
NET PROFIT (LOSS) FROM FINANCIAL MANAGEMENT	29,7	34,9	17,8%
Administrative expenses	(13,0)	(13,9)	6,2%
a) Personnel expenses	(6,7)	(7,2)	6,6%
b) Other administrative expenses	(6,3)	(6,7)	5,7%
Net provision for risks and charges	(0,1)	(0,1)	242,1%
b) Other net provisions	(0,1)	(0,1)	242,1%
Net value adjustments / write-backs on pppe	(0,7)	(0,7)	8,7%
Net value adjustments / write-backs on int. Ass.	(0,4)	(0,4)	31,9%
Other operating income and expenses	1,0	2,2	135,5%
OPERATING COSTS	(13,2)	(12,9)	(1,9%)
PRE-TAX PROFIT (LOSS) FROM CURRENT OPERATIONS	16,5	22,0	33,6%
Income tax for the year on current operations	(5,6)	(6,9)	24,2%
PROFIT (LOSS) FOR THE YEAR	10,9	15,1	38,4%

Balance Sheet

EMARKET SDIR
CERTIFIED

Balance Sheet (€m)	2022A	2023A	Var% YoY
Cash and cash equivalents	43,7	21,6	(50,5%)
Financial assets measured at fair value through p/l	0,0	0,0	13,2%
Financial assets measured at amortised cost	385,4	462,4	20,0%
Equity investments	0,0	0,0	-
Property, Plan and Equipment (PPE)	4,9	5,0	2,6%
Intangible assets	2,0	2,6	27,1%
Tax assets	4,6	5,7	24,2%
a) current	4,1	5,1	23,4%
b) deferred	0,5	0,6	31,8%
Other assets	3,2	2,7	(13,4%)
TOTAL ASSETS	443,8	500,0	12,7%
Financial liabilities measured at amortised cost	368,4	409,4	11,1%
a) payables	331,2	376,8	13,8%
b) outstanding securities	37,2	32,6	(12,3%)
Tax liabilities	4,9	7,1	44,6%
Other liabilities	11,6	14,0	21,2%
Severance pay	1,3	1,5	11,7%
Provision for risk and charges	0,8	1,6	93,3%
Share capital	4,2	4,2	0,0%
Share premium reserve	25,4	25,4	0,0%
Reserves	16,2	21,6	33,7%
Valuation reserves	0,1	0,1	25,5%
Profit (loss) for the year	10,9	15,1	38,4%
TOTAL LIABILITIES AND SHAREHOLDERS'S EQUITY	443,8	500,0	12,7%

Business Plan 2022-2024 KPIs

Line (€ bn) Top	2021A	2022A ADJ	2024E	CAGR '21-'24
Turnover	4 1 ,	2 0 ,	3 4 ,	34%
Allocated Amount	1 1 ,	1 7 ,	2 8 ,	36%
(2) LTV	80%	83%	83%	n.a.

P&L (€ mn)	2021A	2022A ADJ	2024E	CAGR '21-'24
Margin Interest	6 2 ,	3 7 ,	13 7 ,	30%
Commision Net	17 7 ,	23 6 ,	35 7 ,	26%
Net Banking Income	23 9 ,	30 9 ,	49 3 ,	27%
Operating costs	(9 8) ,	(11 6) ,	(14 7) ,	14%
Profit Net	9 5 ,	12 1 ,	21 5 ,	31%

BS (€ mn)	2021A	2022A ADJ	2024E	CAGR '21-'24
Equivalents Cash Cash &	33 5 ,	43 7 ,	54 7 ,	18%
Financial Assets	321 0 ,	385 4 ,	697 9 ,	30%
Other Assets	10 8 ,	14 6 ,	13 8 ,	9%
Total Assets	365 3 ,	443 8 ,	766 5 ,	28%
Financial Liabilities	314 6 ,	368 4 ,	648 5 ,	27%
Other Liabilities	18 7 ,	4 17 ,	36 7 ,	25%
Shareholder's Equity	32 0 ,	58 0 ,	81 3 ,	36%
Liabilities Total	365 3 ,	443 8 ,	766 5 ,	28%

(%) KPI	2021A	2022A ADJ	2024E	CAGR '21-'24
Net Banking Income / Average Loans	9 6% ,	8 7% ,	8 0% ,	n.a.
Interest Margin / Net Banking Income	26 0% ,	23 5% ,	27 8% ,	n.a.
Ratio Cost Income	9% 40 ,	7% 37 ,	7% 29 ,	n.a.
ROE	42 0% ,	26 3% ,	36 0% ,	n.a.
CET1 Ratio	9 4% ,	14 6% ,	2% 11 ,	n.a.
Total Capital Ratio	13 7% ,	6% 17 ,	13 3% ,	n.a.

Note: 2022A ADJ means that the values are neutralized from IPO costs € 1,6 mn (2) LTV: Loan to Value

Turnover breakdown vs system average 1/2

Generalfinance's Turnover data refers to December 31, 2023 Assifact's Turnover data refers to September 30, 2023

1%

5% 10% 15% 20% 25% 30%

0%

Assifact

Turnover breakdown vs system average 2/2

Generalfinance's Turnover data refers to December 31, 2023 Assifact's Turnover data refers to September 30, 2023 1) Household debtors have not been included

0 20 40 60 80

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1)

Assifact

Top line components

SIMPLE AND TRANSPARENT P&L PAIRED WITH ALMOST NO VOLATILITY OF FAIR VALUE / CREDIT ADJUSTMENT

Revenues' generation – example

EMARKET SDIR
CERTIFIED

PRO SOLVENDO TRANSACTION		Formula	Accounting P&L
Invoice's nominal value	100 000 00 ,	a
Advance rate	80 00%	b
disbursed Gross amount	80 000 00 ,	c = a x b
of disbursed amount	69
Maturity (days) Contractual interest rate	7 50%	e f
(floating) Interest revenues	167 12 1 ,	g = ( c x f x (e+2) ) / 365	Prepayment
DSO	70	h
commission Monthly rate	40% 0	i
Commission revenues	933 33	l = a x i x (h/30)	Prepayment
Total revenues	2 100 46 ,	l m = g +	Prepayment
disbursed Net amount	77 899 54 ,	n = c - m
Delay in payment (days)	8	o
in interest Delay payment rate	00% 7	p
Delay in payment commission rate	0 50%	q
in interest Delay payment revenues	122 74	r = ( c x p x o) / 365	basis Cash
Delay in payment commission revenues	133 33	s = a x q x (o/30)	Cash basis
Delay in payment total revenues	256 07	t = r + s	Cash basis
Non-advance amount	20 000 00 ,	u = a - c
Net settlement	19 743 93 ,	v = u - t

Benefits of pro-solvendo lending contract

The offsetting mechanism is a specific technicality of the Factoring Agreement, which is elaborated consistently with the Assifact standard

ARTICLE 28 OF GENERALFINANCE FACTORING AGREEMENT

"The Factor will be entitled to retain sums and set off the debts (of every kind) due by the Factor to the Seller against the Receivables (of every kind) due from the Seller to the Factor, including the Receivables due from the Seller to third parties and assigned to/guaranteed by the Factor.

Should the Seller default on any of its payment obligations, the Factor will be able to treat its Receivables as liquid and payable, even if not already fallen due. Offsets by the Seller require the prior written consent of the Factor".

A PRACTICAL EXAMPLE:

Seller A

ID Borrower	Nominal Value (A)	LTV (B)	Disbursement (C) = (A x B)	Unpaid	Amount Collected (D)	Amounts not advanced to be settled (D - C)
1	100.000,00	80%	80.000,00	Yes	-	-
2	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
3	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
4	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
5	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
6	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
7	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
8	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
9	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
10	100.000,00	80%	80.000,00	No	100.000,00	20.000,00
	1.000.000,00		800.000,00		900.000,00	180.000,00
			Debts of the Factor Unpaid debts			180.000,00
			compensated			80.000,00
			Netting to be liquidated			100.000,00

In FY 2021, Generalfinance paid an average advance equal to 80% of Turnover. With regard to the prosolvendo factoring, Generalfinance is entitled to set off amounts owed by the Sellers to it against amounts owed by Generalfinance to the Sellers based on specific clauses included in the factoring agreement.

The Company has a high Debtor/Seller ratio equal to 58, growing steadily over the last 3 financial years, against an average of the Italian factoring market calculated excluding private assigned Debtors - equal to 10¹ , which expands the possibilities of offsetting between receivables and debit items against the Sellers as part of pro-solvendo transactions.

Capital Stack – A capital light lending business

GENERALFINANCE

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