Banca Ifis

Investor Presentation • Feb 10, 2022

Leadership in small-ticket specialty finance

Milan – February 10, 2022

Banca Ifis: a long-term track record of sustainable growth

1. Own funds; 2. Increase in the capital levels driven by the acquisition of the former GE Capital Interbanca Group on 30 November 2016, with a gain on bargain purchase of 623.6 €mln recognized in the income statement and as such included in the Group's post-transaction capital position at 31 December 2016; 3. Average payout ratio within the time period; 4. Decision 139 of 22/5/2020 from ECB, authorizing the transfer of 50.99% of La Scogliera S.p.A. (n. 1.130,682 shares) in ownership in favor of Ernesto Fürstenberg Fassio; 5. Excluding gain from the rebalancing of the government bond portfolio from the profit of 2015; 6. Subject to approval by Banca d'Italia and capital requirements; 7. Net-Zero Banking Alliance

1

Present in profitable and growing market segments

1. Average of top 6 players by turnover in the Italian market (including Banca Ifis); Included Mediocredito Italiano with last available financial reports (2018); 2. Based on factoring turnover; source: Assifact; 3. Annual reports of 10+ among top players focused on auto leasing in the Italian market and top 8 players focused on tech and equipment rental in the Italian market; 4. Source: Assilea; 5. Source: annual reports of top 7 NPL servicers in Italy; 6. NPL cumulated disposals; 7. Does not include Governance & Services

A challenger, but with 40 years of track record

• Commercial and Corporate Banking NPL
• ► Specialised player for SMEs, with a broad range of credit products (factoring, lending, leasing, and rental)
• ► Market leader in profitable businesses (e.g., SME factoring, Tech Rental, Pharmacies)
• ► "Light" commercial network (without cash services) rooted in the most industrialized areas of the country

• ► Customer interaction based on a high-performance service model and a reputation for efficiency

• ► Investor and servicer specialized in small ticket NPEs, with a distinctive vertically integrated business model

• ► Execution track record with originators, investors, and other servicers, supported by pricing capabilities and proprietary debtors' database
• ► Proven collection strategy with distinctive skip tracing¹ capabilities and internal "legal factory" team

A solid financial starting point

15.4%

Market average

UTP

NPL

Coverage ratio 2021, %

43%

68%

8.12% SREP minimum regulatory requirement

1. Dividends approved and not distributed which the Bank will continue to keep as a decrease in the Group's Net Equity and to account for under Other Liabilities at least until 30 September 2021, in accordance with the Bank of Italy Recommendation of 16 December 2020 2. Dividend paid on 26 May 2021 with record date on 25 May 2021

2. Liquidity Coverage Ratio 4. Net Stable Funding Ratio

3. Including holding delocalization 6. Source: top 10 Italian banks by asset as of YE2020 7. Best estimate at the present time

~3%⁶

4

Our 3 year plan: consistent "core net income" growth, driven by our capabilities, with a low risk profile

Banca Ifis' risk profile:

• ► Structurally protected liquidity position (maturities)
• ► Marginal contribution of extraordinary revenues
• ► Diversification
• ► Fragmentation of exposures and prudent credit policies

• ► Progressive cost/income reduction through resource re-skilling

• Purchase Price Allocation

• Subject to approval by the regulator

• Subject to achievement of target profits and approval by the regulator

Leadership in small-ticket specialty finance: Ifis D.O.E.S.

6

Pillars	Why	Main initiatives
D igital	Expand competitive advantage and enable growth through enhanced distribution	► Fully seamless omnichannel experience for SMEs, distinctive in the Italian market ► Multichannel NPL debtor contact capabilities; robotics and analytics to streamline recovery strategies
O pen (Bank as-a-platform)	Capture opportunities with partners, at variable costs	► Partnerships for SME business with non-competing banks (i.e., asset gatherers) and nonbanking players to enhance distribution capacity and expand into adjacent markets ► Forward flow agreements with NPE originators for sustainable value creation and co-investments via dedicated vehicles
E fficient	Self-finance growth and investments over the plan horizon	► End-to-end process simplification and automation ► Rigorous management of suppliers and external partners and optimization of NPL recovery strategies
S ustainable	Deliver tangible impact to clients, employees, and the community	► Join Net-Zero Banking Alliance and support the SME clients' environmental transition ► Establishment of a Social Impact Lab to foster diversity and inclusion ► Practical customer assistance to NPL debtors (financial "re-inclusion") ► Sustainability Committee and A rating grade from MSCI

Digital | Enable cost-efficient growth and streamline processes

Strategic initiatives		Examples	Selected KPIs
• 1 Omnichannel experience for SMEs 2 • 3 • 4 • • 5	Web marketing solutions based on customer profiling to improve number and quality of commercial leads		Online client acquisition2 , %
	Omnichannel distribution of the Group's product offer (including lending, factoring, CQS e CQP1 , leasing and rental)	Client acquired by online marketing, onboarded remotely, is	>40 ~25
	Enhanced commercial suite for partner distributors to enable effective customer interaction and enable sales	digitally given credit and is assisted by Ifis
		remote assistant in uploading invoices in	Time-to-yes, # of days
	Workflow digitalisation and automation of low-value added manual tasks (end-to-end)	a fully omnichannel experience	~123
	Unified digital multi-product credit workflow to reduce time-to-yes (including auto decisioning) and improve governance of credit risk		<14
Multichannel • contact	6 Multichannel debtor contact strategy, including SMS and instant		Contact frequency, index
	messaging, for handling higher volumes at lower costs	Newly acquired NPL	145 100
strategy, and	• 7 Robotics and Artificial Intelligence (AI) to speed up recovery	portfolio automatically
advanced analytics for NPL 8 •	processes (e.g., automation of payment verification on >70% of total payments, semantic recognition for document verification)	analyzed at entry by	Time-to-onboard5 , index
		the system and single files routed to optimal	100 66
	Single Control Tower to improve collection strategies (e.g., advanced customer profiling; "best action"/"best match" lists)	recovery strategy	2021 2024

1. CQS / CQP – Cessione del Quinto dello Stipendio / Pensione

• 1. Factoring and Lending products
• 1. Lending, excluding suspension periods (e.g., failure to provide documentation) and nonstandard loans
• 1. Varies by type and size of loan request, excluding document collection by clients
• 1. Only for positions with digital documentation available

Digital | IT Architecture in place to support the transformation

State-of-the-art proprietary IT digital architecture

API Integration proprietary Layer for fast business integrations

• ► > 7.500 micro services available
• ► 3rd-party technologies (AI, RPA, Cloud aaS) easily integrated
• Agile development of native digital applications for customers and employees
• ► Modularity and flexibility (24 Proprietary Apps, 1 Digital Architecture)
• ► Short time-to-market: - Internal IT factory
  • Scalable capacity
  • No vendor lock-in
  • Standard APIs

Innovations delivered in 2021

Commercial & Corporate Banking

• ► Advanced CRM covering all main products implemented in <9 months
• ► Online leads integrated with CRM already generating ~25% of client acquisition
• ► Omnichannel distribution of guaranteed lending products (>2000 leads in 6 months)
• ► Digital selling platform for leasing & rental (delivered in 12 and 6 months each)
• ► Digital workflow of multi-product credit in place for leasing and rental (>90% of requests approved in <3 minutes)

NPL

• ► Advanced digital platform for legal recovery (>100k legal actions/year; real estate workflows delivered in 6 months)
• ► Artificial Intelligence prioritizing positions to call center and agents (~15% of total positions)
• ► Robotic to optimize operations (~30% time saved on payments reconciliation)

Governance

► Fast M&A integration: 13 operations in 5 years, Aigis integrated in 5 months

Open | Bank-as-a-platform: driving growth with commercial and strategic partnerships

Commercial & Corporate Banking: boost distribution with plug and play

NPL: align interests and reduce

complexity

costs

9

'22-'24

'19-'21

Open | Calendar provisioning impact mitigated by selective open architecture

Mitigating levers

Financial Structuring	► Co-investment via special purpose vehicles with originators, specialized funds, and other industry players
	► De-consolidation of portfolios with highest penetration of calendar provisioning
	► Banca Ifis acting as a co-investor, master servicer, servicer
Adapted collection approach	► Reduction of recovery time frame to anticipate capital requirements, via: − Settlements ("saldo e stralcio") − Reduction of onboarding time frame through digital and semantics1 − More selective use of judicial recovery

The combination of co-investments and faster recovery strategies almost offsets the impact of calendar provisioning on capital, with marginal impact on the Banks's profitability

Efficient | Tight cost management to self-finance transformation (1/2)

Key initiatives

• ►Reduction in unit costs:
  • Renegotiation of contracts with external vendors
  • Setup of new centralized procurement function to leverage scale
• ►Cost synergies from integrations (e.g. IT, real estate)
• ►Efficiencies in NPL recovery costs from low-cost channels and extrajudicial strategies

• ►"Change" expenses driven primarily by:

  • ICT development
  • C&CB growth initiatives

• «Other administrative expenses» do not include: FITD and SRF contribution, Bargain, legal and advisory costs due to LS transfer to CH and other minor one-off provisions; include «other income and expenses»

Efficient | Tight cost management to self-finance transformation (2/2)

Key initiatives

• ►Processes digitalization:
  • Credit management
  • Advance payments handling
• ►Re-design of sales, servicing and operations processes
• ►Recourse to robotics for less added value activities (e.g.: receipts reconciliation, semantic reading of contracts)
• ►Re-skilling and Up-skilling of 750 resources in IT, operations and commercial support functions, in order to better support business development

Sustainable | Deliver tangible impact to clients, employees, and the community

Environmental Social Governance

Net-Zero Banking Alliance¹

State and deliver on carbon objectives, as the first Italian bank to join the Net-Zero Banking Alliance (achieve net-zero emissions on own loans portfolio by 2050, by setting intermediate targets on priority sectors² by 2030)

SME clients' environmental transition

Support SME clients' environmental transition via subsidized loans, advisory, and scoring service (even with other partners)

Social impact lab

Manage projects to foster diversity and social inclusion in a dedicated Social Impact Lab focused on Culture, Community, and Health

Debtors' financial recovery

Set the market benchmark in supporting the financial recovery of debtors: ethical collection model, access to credit, support to fragile families

Ifis People

Invest in the growth and development of a young and dynamic workforce with training inclusion programs; smart working and flexible work hours

ESG governance

Further strengthen inclusion and diversity (nationality/heritage as well as gender) and empower the Sustainability Committee through chairmanship of VP Ernesto Fürstenberg Fassio

ESG rating

Obtained A rating grade from MSCI. Management committed to improve the rating level already obtained in the course of the plan

1. Includes power and utilities, waste, mining, building, agriculture, and transport

^1. Industry-led, UN-convened Net-Zero Banking Alliance brings together banks from ~30 countries representing almost a quarter of global banking assets (over 38.6 US\$trillion), which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050

Sustainable | Leveraging a young and versatile community of Ifis people

Diversity program and unique proposition in the industry in terms of smart working and flexible work hours

Prudent macro-economic and market assumptions

Source: Banca Ifis Research Office estimates | January 2022

Sound financial performance throughout the period

€mln	2021	2024	CAGR 2021-24 % Δ 2021-24 p.p./bps
Net revenues1	603	689	5%
Loan loss provisions (LLP)	-77	-62	-7%
Operating costs	-348	-372	2%
Other costs2	-28	-12	-24%
Pre-tax profit	150	243	17%
Net income	102	164	17%
Parent Company's Net income	101	161	17%
Customer loans (inc. NPL)	10.3 €bln	12.1 €bln	5%
Cost/income, %	62%	56%	~ -6 p.p.
Cost of credit3 , bps	64	56	-8 bps
Gross NPE ratio3 , %	6.4%	5.7%	~ -0.7 p.p.
Cost of funding, bps	84	102	7%
CET14 ratio, %	~15.4%	~15.1%	~ -0.3 p.p.
ROE, %	~6%	~9%	~ 3 p.p.

Considerations

2021	COVID-19 still
	affecting C&CB and
	NPL in Q1, back to
	pre-COVID-19
	performances from
	Q2

Full potential executed (e.g., strategic partnerships, new products launch, efficiency initiatives) 2024

1. Including: dividends, results from trading and hedging, profits / losses from sales

2. Including: FITD-Fondo di risoluzione, Extraordinary Items, Bargain, provisions

3. Excluding Ifis NPL investing and Ifis NPL servicing

4. Considers the transfer of LS in CH

Balanced contribution of both Commercial & Corporate Banking and NPL business

	Commercial & Corporate Banking			NPL			G&S e Non-Core
€mln	2021	2024	CAGR% Δ p.p.	2021	2024	CAGR% Δ p.p.	2021	2024
Net revenues1	284	353	+7%	258	313	+7%	61	24
Loan loss provisions (LLP)	-45	-59	+9%	~ -185	-	n.s.	-14	-3
Operating costs	-154	-169	+3%	- 166	-174	+1%	-28	-29
Other costs2	-5	-1	n.s.	-	-	n.s.	-22	-11
Pre-tax profit	79	123	+16%	73	139	+24%	-3	-20
Net income	54	83	+15%	50	94	+23%	-2	-13
Contribution to Group Net Income, %	53%	51%	-2% p.p.	49%	57%	+8% p.p.	-2%	-8%
Customer loans/Net NPLs3	6.6 €bln	8.3 €bln	+8%	1.5 €bln	1.7 €bln	+3%	2.2 €bln	2.1 €bln
Cost-income, %	56%	48%	-8% p.p.	64%	55%	-9% p.p.	n.s.	n.s.
ROAC4 , %	~9%	~10%	+1% p.p.	~18%	~40%	+22% p.p.	n.s	n.s

1. Including: dividends, results from trading and hedging, profits / losses from sales

2. Including: FITD-Resolution Fund, Extraordinary Items, Bargain, provisions

3. Reported as Net Book Value for NPL business 4. Return On Allocated Capital at 12% CET1 ratio 5. One-off effect

Combined cost of credit reduction and NPE ratio improvement

Potential COVID19 impact already fully accounted for

• ► ~43 €mln additional LLPs in 2020-21 (sectoral / concentration risk)
• ► Expected +0.8% gross NPE ratio in 2022 (7.2%), gradually improving in 2023-24

Risk management initiatives already executed

• ► Strengthening of organizational structures (CLO and "Credit Committee")
• ► Revision of Credit Policies with introduction of limits by counterparty type (SME Retail – SME Corporate – Corporate)
• ► Review of Technical Forms/Risk Classes in line with the Group's clients and products characteristics
• ► Review of the Delegated Authorities System with reduction of autonomy on higher risk classes to 1/3 of previous level
• ► Reduction of concentration risk consistent with "small ticket" positioning (single name risk from 1.2% in 2018 to 0.8% in 2021)

CET1 remains above 14% over the plan period, protecting the cost of funding and the sustainability of dividends

CET1 ratio 2022-24, %

Note: the figures shown take into account the positive outcome of the LS transfer to CH.

1. Credit risk only. Including both Commercial and Corporate Banking (-2,0%) and NPL business (+0,4%); the latter benefits from the change in the weighting from 132% in 2021 to 100% in the following years

2. 43 €mln of volumes subject to calendar provisioning, of which ~15 €mln Commercial and Corporate Banking (distressed factoring and leasing exposures), and ~27 €mln NPL (volumes subject to calendar provisioning purchased in 2021) 3. Includes: capital, share premium, reserves, proprietary shares, minorities, intangible assets including goodwill, DTAs, prudential filters, transitional arrangements, other credit RWA and operating RWA, market RWA and CVA

Resilience in adverse scenarios (1/2)

Macro Scenarios	Negative	Base		Rationale
Euribor3M1 Parent Company's Net Income 2024, €mln	-0.57% (2021 levels) ~152	-0.23% 161	0.27% (+50 bps) ~177	► Positive impact from interest rate increase due to almost instant repricing of factoring portfolio (short-term) ► Decreasing interest rates mitigated by existing floors on rates on medium/long-term credit (in particular leasing)
Credit quality, NPE ratio % CET1 ratio 2024, %	6.3% ~14.9%	5.7% ~15.1%	- -	► Sensitivity measured via cost of credit impact ► Assumption that ~80 €mln Stage 2 exposures migrate to UtP in 2022 and to bad loans by 2024 (positions already closely monitored and with low probability of switching to NPLs)
Spread BTP-Bund, bps CET1 ratio 2024, %	>300 bps (+200 bps) ~14.5%	~110 bps ~15.1%	- -	► Increase in credit spread on proprietary portfolio with negative impact on securities reserves (FVOCI1 ) and CET1 (~50 €mln reduction in CET1) ► Rebalancing of the proprietary portfolio mix can be introduced to mitigate changes in the BTP-Bund spread (not simulated)

1. Parallel shifting of the interest rate curve

Resilience in adverse scenarios (2/2)

NPL Market Scenarios	Negative	Base		Rationale
Total purchases (cumulated 2022-24), €bln Parent Company's Net Income 2024, €mln	~6 (-25%) ~151	~7.4 €bln 161	~9 (+25%) ~171	►Changes in portfolio purchased have limited impact in the short term as volumes relative to existing stock ► Cost management (e.g., variable costs) as mitigant in case of downturns (not simulated)
Purchases subject to calendar provisioning (cumulated 2022-24), €bln	~2.5 (~40%)	~1 (~15%)	~0.5 (~5%)	► Impact of calendar provisioning almost fully mitigated by timely allocation of credits subject to calendar provisioning to special purpose vehicles (SPVs)
Parent Company's Net Income 2024, €mln	~157	161	~167	► Adoption of fast recovery strategies can further limit the impact

Banca Ifis in 2024

D igital	►Complete product portfolio digitized with >90% of new sales completed in < 3 days ►>40% of new clients acquired via digital channels (double vs. today) ►+20% NPL volumes managed via digitised centralised management	Generating value for shareholders >160 €mln
O pen	►Bank-as-a-platform partnerships with leading players for the distribution of Commercial & Corporate Banking products ►Associated with blue-chip co-investors in the NPL market	Net Income in 2024 >400 €mln
E fficient	►Same size organization rebalanced towards commercial and business roles ►Leaner cost structure maximizing value from external vendors	cumulated Net Income 2022-24 >200 €mln cumulated Dividends 2022-24
S ustainable	►Recognised for initiating the achievement of net-zero emissions by 2050 ►Top 5 bank in Italy in ESG ratings	9% ROE in 2024

Appendix

Appendix – Contents

Evolution of Banca Ifis and resilience to external shocks

Commercial and Corporate Banking: market positioning and new initiatives

NPL: market positioning, initiatives and main assumptions

Efficiency: cost optimization initiatives

ESG: business plan main initiatives

Value creation through diversification

Balance sheet

Considerations

• ► Dynamic growth in Corporate and Commercial Banking, customer loans driven by multiple partnerships and significant room in market share
• ► NPL stock growth driven by new purchases at a constant pace
• ► Continuing diversification of sources of funding (especially towards public markets offering, liquidity of issuance to investors)

Customer loans growing organically in all businesses

Highlights

Commercial and Corporate Banking volumes driven by:

• ►Partnerships (+400 €mln, o/w ~200 €mln lending)
• ►Growth on highly profitable segments (e.g., +80 €mln Pharma, +70 €mln tax credits)
• ►Digital products launch (e.g., +20 €mln via digital lending)

Non Core loan portfolio winding down; boost to Capitalfin portfolio through new set of commercial activities

1. Only including assets measured at Amortized Cost; assets measured at Fair Value not included.

2. Includes loans to SMEs 80% guaranteed by the State and Corporate Banking exposures; medium-/long-term lending to pharmacies (Credifarma + Farbanca);

Ongoing diversification and optimization of funding

Ifis

• ►Increase in cost of funding (+18 bps) due to growing interest rates (+30bps) and partially offset by funding strategy
• ►Renewal in 2024 and increase in amount of securitizations of factoring and lending credits (1.7 €bln in 2024) as means to refinance own assets
• ►Activation and development of new channels for Rendimax deposits, to reduce single-channel dependance and increase longterm component
• ►Growth in bonds improving liquidity
• ►Prudent use of TLTRO (0.9 €bln buffer)

• ►MREL availability significantly higher than regulatory requirements

• Payables due to banks, Repos on NPL securitizations

• European Investment Bank, Cassa Depositi e Prestiti

• Securitizations of Factoring (from 1.2 €bln in 2021 to 1.3 €bln in 2024) and Farbanca credits (from 370 €mln in 2021 to 400 €mln in 2024)

• Including Unencumbered ECB eligible assets and cash reserves

• Regulatory requirements set at 10% of Total Risk Exposure Amount (TREA) for Banca

28

Proprietary finance

• ► More than 90% of bond portfolio rated investment grade
• ► Limited equity investments focused on both high-dividend yield and highly liquid stocks, with optimisation and hedging strategies
• ► Maturity of ECB eligible portfolio aligned with TLTRO
• ► Strict management of cash reserves
• ► Potential increase in HTC&S share respect to HTC share on a tactical basis if rates/credit spreads fairly higher

1 Held-to-collect 2 Held-to-collect and sell 3 Includes investments in "Equity" attributable to the Proprietary Finance Business Unit. In order to obtain the total amount of equity investments, the stock of shares held by the Equity Investment BU should be added to this value, whose value is approximately 55 €mln in 2021 and expected to be 170-175 €mln in 2024.

New bond issues

• ► Ifis as a frequent bond issuer with a potential of €2.5bln new bond placements
• ► Placements to be reviewed in the Business Plan period considering regulator's approval, funding requirements/volume growth, funding costs, and funding mix diversification
• ► Rating Moody's : Obtained investment grade rating (Baa3)
• ► Equita SIM as liquidity provider on the secondary debt market to guarantee liquidity for outstanding issues

1 Subject to Regulatory Approval for the exercise of the call option on current Tier 2 bonds already issued

2 Subject to regulator's approval

Appendix – Contents

Evolution of Banca Ifis and resilience to external shocks

Commercial and Corporate Banking: market positioning and new initiatives

NPL: market positioning, initiatives and main assumptions

Efficiency: cost optimization initiatives

ESG: business plan main initiatives

C&CB products and segments

		Loans to customer in 4Q21, €bln	Highlights
	Factoring to SMEs	2.4	► Strong sector and borrower diversification; exposures to debtors (usually medium and large corporates) with high ratings
Factoring	Factoring to public administration	0.5	► Limited asset quality risk, uncertainties on payment time frame to be managed appropriately
Lending	Guaranteed lending	0.7	►Loans to SMEs 80% guaranteed by the State
	Lending to pharmacies	0.9	► Medium-/long-term lending to pharmacies (Credifarma and Farbanca)
Leasing and rental	Leasing to SMEs	1.4	► Strong sector and borrower diversification, with remarketing agreements. 1.2 €bln financial leasing and 0.2 €bln operating leasing
Structured Finance	Structured finance to SMEs	0.7	► Private Equity-sponsored lending to ~55 noncyclical corporations. Tactical investments in PE funds (60 €mln) and specialsituations (UTP) (35 €mln)
	Total customer loans of Commercial and Corporate Banking	6.5

Factoring – league table

Factoring market in Italy, 2020

Turnover, €bln			Turnover mkt share, %	Revenue mkt share1 , %
1				53	23%	15%
2				53	23%	n.d.
3			28		12%	9%
4		12			5%	3%
5		11			5%	13%
6		11			5%	3%
7		9			4%	2%
8		8			3%	5%
9		5			2%	6%
10		5			2%	2%
	Other		34		15%	n.d.
	Total market 228

Banca Ifis' distinctive positioning

• ►Higher-than-average asset profitability (5.4% vs. 1.8% market average² )
• ►Higher cost of risk vs. peers (~100bps vs. ~20bps² ) more than offset by margins
• ►Focus on SME segment, with solid presence in ~25% of companies that use factoring today

• ►300 €k average ticket

• Estimate based on Revenue Pool of 1.12 €bln provided by OSSFIN on sample of ~20 players (accounting for 73% of market turnover) 2. Based on 2020 Financial Statements of top 7 players Source: Assifact, OSSFIN, 2020 Financial Statements

Leasing – League table

Leasing market in Italy, 2020

Banca Ifis' distinctive positioning

• ►Focus on SME and highly profitable product segments (auto, tech), with higher-thanaverage profitability (3.5% vs. 1.9%) and lower cost of risk (~100bps vs. ~200bps)
  • ~40k active clients
  • ~40 €k average ticket for leasing, ~10 €k for rental
  • 3-4 years average contract duration
• ►Largest non-captive player in auto-leasing by volumes (>200 €mln)
• ►Solid long-term partnerships with industry leaders (Tesla and Apple)

Growth opportunities in key business segments through PNRR

NON-EXHAUSTIVE Area	Initiatives launched	Potential further developments	Key figures (2021-26)
Factoring	► Factoring guaranteed by the Guarantee Fund	► Extension of digital management to noncertified credits	~75 €bln PA invoices
Leasing and rental	► "Ifis Leasing Green" programme on electric cars (partnership with Tesla)	► Extension of "IFIS Leasing Green" program to photovoltaic panels, charging stations (EnelX) and hybrid vehicles (Link&Co)	13 €bln for sustainable mobility
	► 4.0 industrial equipment (including advisory)	► Diagnostic tools for pharmacies/private clinics ► High-tech agricultural equipment	~5 €bln for sustainable agriculture
Lending	► Mortgages guaranteed by the Guarantee Fund ►Mortgages guaranteed by SACE	► Bundle offer of advanced equipment leasing (4.0) + tax credit transfer

► Purchase of tax credits ► Purchase of tax credits to enable new origination ~35 €bln

for tax credit

Illustrative: digital customer journey for SME clients

product)

ifis4business portal

Appendix – Contents

Evolution of Banca Ifis and resilience to external shocks

Commercial and Corporate Banking: market positioning and new initiatives

NPL: market positioning, initiatives and main assumptions

Efficiency: cost optimization initiatives

ESG: business plan main initiatives

Top 10 Italian special servicers ranked by NPLs AuM @ 2021 EoY

Company	Shareholders	NPLs AuM, €bln	Average ticket, €k	Secured	Unsecured
	Fortress / Bain Capital / other	80.2	146	33 67
	INTRUM	41.0	59	46	54
	Public company	34.6	46	53 47
	La Scogliera/public market	24.4	11	7 93
	Davidson Kempner/public market	22.1	247	61 39
	Italian Ministry of Economy and Finance	19.9	76	51 49
	Morgan Stanley/Elliot	18.6	85	62	38
	iQera Group	12.8	13	50	50
	AnaCap/Pimco	12.5	297	43	57
	Hoist	10.6	8	10	90

Business models of market players

Type	Player	Proprietary NPL portfolio NPL under servicing (banks, investors)		NPLs AuM, @ 2021 EoY, €bln
		89%	11%	24.4	► Banca Ifis acts as principal
		37%	63%	10.6	investor with one of the best proprietary servicers in the
Investor with internal servicer		61%	39%	18.6	Italian market (Fitch rating1 ) ► Competitive advantage due to
		45%	55%	19.9	the combination of purchasing and servicing skills
		N/A		41.0
		100%		80.2	► Economies of scale
		100%		34.6	► Business models for servicing all NPL clusters or specializations
Servicers		100%		22.11	in NPL niches
		100%		12.8
		100%		12.5
Opportunistic Investors without partnership					► Opportunistic investors

1, Asset-Backed Special ABSS1-, Commercial Special CSS2+, Residential Special RSS2+, risk monitoring rating: category 1. Source: AuM Banca Ifis internal estimate at 31/12/2021 based on company data, news and PWC last date available.

Banca Ifis NPL specialization drives selectivity in investments

Source: Banca Ifis. Prices are purely indicative 1 Price paid/GBV

Proven experience in NPL recovery

►Full cash recovery of price paid after ~4 years on average due to high penetration of judicial strategies Nov-21

Expected Recovery Collections (ERC)

Assumptions ERC breakdown of existing portfolio, €bln Timing of expected collections

				3.0
		1.4
1.6
Up to 5 years
		More than 5 years		Total
		GBV	NBV	ERC
Waiting for workout –	At cost	3.4	0.1	0.3
Extrajudicial positions		10.9	0.4	0.8
Judicial positions		7.5	0.9	1.9

• ►ERC-based proprietary statistical models built using internal historical data series reflecting specific clusters of borrowers (e.g., type of borrower, location, age, amount due, employment status)
• ►ERC represents Banca Ifis' expectation in terms of gross cash recovery, includes proceeds from disposals
• ►Costs (internal and external) already expensed in P&L

Source: Management accounting data and risk management data

Newly NPE flows in bank balance sheets expected to grow in 2022

Banks' NPE inflows from performing and deterioration rate by corporate and individual only residents, €bln, %

Ifis NPL Watch key findings:

• ►In 2020-21, the deterioration rate remained unchanged thanks to public mitigation measures
• ►Years 2022-23 will see non-performing loans increase, but less than the peak of 4.5% in 2013
• ►In 2024 the rate will return to pre-Covid level

Source: Banca Ifis internal analysis based on Banca d'Italia statistical Database.

NOTES: Corporate includes non-financial companies and producer households; Individual includes consumer households, non-profit institutions, non-classifiable data and residual value. BANKS' NPE INFLOWS : annual flow of new loans in default adjusted.

DETERIORATION RATE: annual flow of new loans in default adjusted / stock of loans not in default adjusted previous year.

NPL transactions expected to remain dynamic

Ifis NPL Watch key findings:

• ►Secondary market expected to contribute significantly to the trends of the NPL market
• ►2021 disposal of UTP portfolios lower than expected due to pipeline postponed
• ►NPL disposals in 2022-23 forecasted to be higher than 2021, due to an expected increase in bank impaired flows

Unsecured prices increasing slightly in 2021

Estimated average prices on NPL and UTP transactions, %

Ifis NPL Watch key findings:

• ► Secured: price in 2020 influenced by the valuation of the MPS-Amco deal (€8bln, 60% NPL)
• ► Unsecured: moderately increasing due to the effect of "fresher" household loan portfolios (max 12 months)
• ► Mixed: stable, with an increase in 2020 linked to GACS (e.g., Intesa Sanpaolo's Yoda portfolio) and securitizations
• ► UTP: variability linked to specific transactions with limited number of deals

Investments 2022-24: assumed a slight decrease in purchased volumes compared to previous years, also due to expected price rise

1. Special Purpose vehicles 3 ~220 €mlm in 2022, ~300 €mln in 2023, ~450 €mln in 2024 Assumptions on purchased volumes include an increase on the secondary market, although not as pronounced as that of 2021

Volumes purchased, GBV €mln

Considerations

• ► ~ 2.5 €bln of volumes purchased each year in the period '22-'24, slightly lower than volumes purchased in the period 2019-2021
• ► Decrease in primary market volumes (-29% vs. '19-'21), in favour of the secondary market compared to '19-'20 period, in order to benefit from:
  • a more balanced portfolio mix in view of the completion of major de-levarage actions by banks in previous years
  • Ifis' competitive recovery performances on the secondary market
• ► Introduction of new volumes of mixed-corporate banking credits potentially managed also in outsourcing through partnerships

Advanced analytics and digital tools to drive best outcomes

Routing adopting AI technology

Digital tools for performance monitoring of legal factory

Key elements

SELECTED EXAMPLES

• ► Direct routing to best-outcome strategy
• ► Prioritization of positions by expected performance potential
• ► Operations kept at full-capacity in each channel
• ► Real-time monitoring of positions' status during judicial collection activity
• ► Near-time availability of each position performance
• ► Monitoring legal partners' performance and adjusting allocations based on expertise and proven track record by asset class

Appendix – Contents

Evolution of Banca Ifis and resilience to external shocks

Commercial and Corporate Banking: market positioning and new initiatives

NPL: market positioning, initiatives and main assumptions

Efficiency: cost optimization initiatives

ESG: business plan main initiatives

Business Plan landing at ~1,900 head counts in 2024

1. Related to NPL business only (~80 Operations HC in 2021)

2. Related to NPL business only

Head counts			Efficiency KPIs	Key initiatives
	2021	2024	Δ 21-24, %
NPL business	330	375	+14%	GBV2/ HC2	► Reskilling and upskilling, Process redesign, robotics and automation (300 HC impacted) to improve efficiency ► New resources to manage higher volumes and new investment models (incl. partnerships, co-investments)
Commercial & Corporate Banking	180 450 270	210 490 280	+7% +14% +2%	Loans disbursed1/HC1	► Sales force and business functions' organizational redesign (280 HC) to enhance effectiveness and streamline activities ► New specialized resources to support growth initiatives and strengthen core business
Operations and ICT	420	420	-	Loans disbursed3/ HC3 (C&CB) GBV4/HC4 (NPL)	► Process optimization and digitalization (70 HC) to keep pace with increasing expected volumes
Support and control functions	650	615	-5%	HC vs. Ifis total HC	► Reskilling and process redesign (150 HC) towards value added activities (including Aigis resources) ► Efficiencies from integration of acquired entities (e.g., Aigis Banca, Farbanca and Credifarma) ► Setup of new Procurement function
Total	1,860	1,900	+2%	Total assets/HC
1. Related to Commercial & Corporate Banking only				3. Related to Commercial & Corporate Banking only (~340 Operations HC in 2021)	C&CB non client-facing C&CB client-facing 50

Efficiency: gains reinvested to change the Bank

1. New projects (e.g., digitalization, developments for partnerships, efficiency-related initiatives) 2. Ifis' Business-oriented Architectural Framework

Specialist entities' relaunch

Italian market leader in financial services to pharmacies

• ► Merger Farbanca-Credifarma to be completed in April 2022 to streamline efficiency
• ► Federfarma to remain as committed minority shareholder (National association of Italian of pharmacists)
• ► Revamping of unmatched offer of specific short term and long term financial and payment solutions already in place
• ► Cross selling to all Banca Ifis products
• ► New CEO hired (Q4 2021) from leading institution

Develop high-margin retail businesses through agents, leveraging Ifis Group leadership in small tickets

• ► Broaden distribution to leasing, CQS/CQP (salary loans), rental and selected third parties' products
• ► Synergies with NPL Servicing business kept fully in-house (CQS/CQP as debtor solution in recovery)
• ► New variable distribution incentives of Group and third parties' products
• ► New CEO and new Head of Sales hired (Q1 2022) from leading institutions

€mln	2021 pro-forma1	2024
Customer loans	~850	>1,000
Net revenues	~20	~24

1. Pro-forma obtained applying rigorous Group cost of funding criteria

€mln	2021 pro-forma1	2024
Customer loans	~35	>200
Net revenues	~1	>5

Further streamlining the "Group consolidation" perimeter

• 2 IFIS Real Estate S.p.A.: integration with Ifis NPL Servicing S.p.A.
• 3 Rationalization of management structures

Company not belonging to the Banking Group

Appendix – Contents

Evolution of Banca Ifis and resilience to external shocks

Commercial and Corporate Banking: market positioning and new initiatives

NPL: market positioning, initiatives and main assumptions

Efficiency: cost optimization initiatives

ESG: business plan main initiatives

First Italian challenger bank to join the Net-Zero Banking Alliance

The Net-Zero Banking Alliance (NZBA) is an initiative promoted by the United Nations aiming to speed up the sustainable transition of the international banking segment

The NZBA currently brings together >100 institutes worldwide, representing over 40% of global banking assets

Member of NZBA commit to aligning their lending and investment portfolios to achieve net-zero emissions by 2050, in line with the targets set by the Paris Climate Agreement

Net-Zero Banking Alliance Banca Ifis' Environmental initiatives

• ► Set 2030 emission reduction targets on loan portfolio within 18 months of signing the NZBA (October 2021) with main focus on high-emission industries (e.g., energy)
• ► Support the sustainable transition of SMEs, via:
  • Ifis Green sustainable product line
  • ESG scoring to own clients
  • Dedicated periodic research and analyses available to Clients and the broader Community to catch market trends
• ► Environmentally-conscious corporate activities (e.g., 100% green energy in all Banca Ifis locations)

Social Impact Lab

Guiding principles

Founding value:

► People at the center: investing in human capital as a driver of the New Normal post-COVID-19 pandemic

Objectives:

• ► Inclusiveness and Impact: promoting inclusion policies with a high social impact
• ► Diversity: enhancing the culture of diversity at 360°

Recipients:

• ► People
• ► Community
• ► Territories

Instruments

Academy

A training center of excellence to invest in skills and talents and promote a sustainable and inclusive business culture

Social Impact Watch

A dedicated observatory on themes and trends to enable the ESG transition

Social Factory

Inclusion projects with a high social impact on territories and communities

Stakeholder engagement

Public-private, profit/nonprofit partnerships and engagement to accelerate innovation

Disclaimer

• ► This Presentation may contain written and oral "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of Banca Ifis (the "Company"). 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 future 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, except 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 advice 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 other 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 a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
• ► The document defines the main guidelines of economic and financial development of Banca Ifis Group considering the bank's market potential in a positive and ordinary macro scenario. Data regarding PPA, asset quality ratios, cost income ratios, liquidity ratios, cost of funding, proprietary portfolio, segment reporting, business unit breakdown, commercial and corporate loan breakdown are management accounting. Data regarding Npl portfolio evolution and ERC, Npl cash recovery and Npl P&L contribution, Npl GBV and NBV evolution and breakdown, Npl P&L and cash evolution and breakdown are management accounting
• ► Mariacristina Taormina, Manager charged with preparing the financial reports of Banca Ifis S.p.A., pursuant to the provisions of Art. 154 bis, paragraph 2 of Italian Legislative Decree no.58 dated 24th February 1998, declares that the accounting information referred to 31st December 2021, included into this document corresponds to the related books and accounting records.
• ► Neither the Company nor any member of Banca Ifis nor any of its or their respective representative 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.

Thank you