Banca Ifis

Earnings Release • Apr 9, 2018

Roadshow Presentation

April 2018

Executive Summary

• Largest independent operator in the specialty finance market in Italy

• Unique business model focused on resilient and appealing market niches

• Sound balance sheet in the Italian banking system

• Resilient earnings and significant capital generation

• Strong liquidity position

• Well positioned to catch potential M&A opportunity supported by successful track record

• Rated BB+ by Fitch (Outlook Stable)

AGENDA I. Banca IFIS at a glance II. Financial performance III. Potential transaction IV. Appendix

Organisational Structure as of 1Q2018

Company with banking license Financial Company Company awaiting authorisation for registration ex. Art. 106 TUB (2H 2018) Company not belonging to Banking Group

Note: 1. Expected to be merged in 1H2018

Management and Shareholding Structure

Solid shareholders' structure and stable management with extensive and important track record

Board of Directors
Chairman	Sebastien Egon Fürstenberg
Deputy Chairman	Alessandro Csillaghy De Pacser
CEO	Giovanni Bossi
Directors	Giuseppe Benini3
	Francesca Maderna3
	Antonella Malinconico3
	Riccardo Preve
	Marina Salamon
	Daniele Santosuosso3

	Board of Statutory Auditors
Chairman	Giacomo Bugna
	Giovanna Ciriotto
Standing Auditors	Massimo Miani
	Guido Gasparini Berlingieri
Alternate Auditors	Valentina Martina
General Manager	Alberto Staccione

Notes: 1. via Alchimia S.p.A.; 2. also via Preve Costruzioni S.p.A.; 3.Independent directors, the Board of Directors appointed Giuseppe Benini as Lead Independent Director

Market Position

Leading position in Italian markets for trade receivables, NPLs and purchase of tax receivables

Update on the Strategic Plan

Strategic plan execution delivering tangible results

Pillars	Objectives	Key Achievements
Solidity	• Safeguarding equity • High level of solvency • Capitalisation supports the growth of the Bank	• Shareholders' equity: EUR 1.4bn in 2017 • Solid capitalisation thanks to: CET1: 15.6%1 − Total Capital ratio: 21.1%1 − • Streamlining of the group structure will provide flexibility to support growth and shareholders' remuneration
Liquidity	• Funding with retail deposits and pool of assets eligible for refinancing at the Eurosystem • Consistent approach to extend funding duration • Diversification of funding • Use of excess liquidity to take opportunities for other parties assets disposal	• Comfortable liquidity position as a result of: − Attractiveness of retail deposits (EUR 5.1bn) − TLTRO II take – up (EUR 0.7bn) − Successful inaugural issuance of a Senior Unsecured Bond (EUR 0.3bn) and a Tier 2 Bond (EUR 0.4bn) − ABS (EUR 0.9bn)
Sustainable Profitability	• Strategic focus on risk adjusted returns • Lending allocation determined by risk-adjusted returns • Increase in net banking income in each business segment	• Each business segment positively contributing to group performance • Increase in profitability achieved at no expense of the risk profile of the bank underpinned by a very prudent approach in provisioning • Sources of income and risk profile of the bank to be further diversified thanks to access to low – risk businesses (CQS)

Note: 1. Capital ratios presented refer to Banca IFIS Banking Group, i.e. excluding the holding company "La Scogliera". According to the CRR perimeter, i.e. including "La Scogliera", CET1 ratio would be 11.66% and Total Capital Ratio 16.15%.

Latest Achievements and Next Steps

Banca IFIS equity story well appreciated in the market, now focus is on credit profile

AGENDA I. Banca IFIS at a glance II. Financial performance III. Potential transaction IV. Appendix

Banca IFIS Group Key Financials

Resilient earnings and sound balance sheet

Balance Sheet (EUR m)			Main KPIs
	20161	2017	%
Due from Banks	1,393.4	1,777.9	27.6%
Loans to Customers	5,928.2	6,435.8	8.6%
Tax Assets	581.0	438.6	(24.5)%
Total Assets	8,708.9	9,569.9	9.9%
Due to Banks	504.0	792.0	57.1%
Due to customers	5,045.1	5,293.2	4.9%
Debt Securities issued	1,488.6	1,640.0	10.2%
Total Liabilities	7,480.4	8,201.1	9.6%
Shareholders' Equity	1,228.6	1,368.7	11.4%

P&L (EUR m)

	20161	2017	%
Net Banking Income	358.6	553.1	54.2%
Loan Loss Provisions	(54.9)	(51.8)	(5.5)%
Net Profit from Financial Activity	299.4	504.8	68.6%
Total Operating Costs	430.9	(256.3)	n.m.
Net income	697.7	180.8	n.m.

	20161	2017
ROE (%)	15.52	13.9
ROA (%)	8.4	2.6
(%)3 Cost/Income	51.92	49.3
CET1 ratio (%)4	15.8	15.6
Total Capital Ratio (%)4	15.8	21.1
Book Value per share (EUR)	22.99	25.62
EPS (EUR)	13.13	3.38
Payout ratio (%)	6.3	29.6

0.82 1.00⁵ 2016 2017 DPS +22%

Notes: 1. Restated. Considering retrospectively the impact of the additional price adjustments agreed for the acquisition of the former GE Capital Interbanca

2. Normalized

3. Net impairment losses on NPL Area receivables (EUR 33.5 m at 31.12.2017 and EUR 32.6 m at 31.12.2016) were reclassified to Interest receivable and similar income to present more fairly the business

4. Banca IFIS only. According to the CRR perimeter, i.e. including "La Scogliera", CET1 ratio would be 11.66% and Total Capital 16.15%

5. Dividend proposed by the Board of Directors

Financial Performance: Profitability

Constantly delivering double digit ROE thanks to operating performance and declining Cost/Income

Notes: 1. Normalized 2. Dividend proposed by the Board of Directors 3. 2016 Normalized; Net impairment losses on NPL Area receivables (EUR 33.5 m at 31.12.2017 and EUR 32.6 m at 31.12.2016) were reclassified to Interest receivable and similar income to present more fairly the business 4. Data for 2016 are both normalized and restated for additional price adjustments.

Financial Performance: Asset Quality

Excellent asset quality underpinned by a very cautious approach in provisioning

Bad Loans Unlikely To Pay Past Due

No significant Impact by IFRS 9 FTA

Note: 1. Excluding "NPL Area" and "Governance and Services"

Financial Performance: Funding Structure

Over the years Banca IFIS has pursued and achieved a funding diversification strategy

Financial Performance: Capital Position

Safe capital position thanks to financial discipline and sound capital generation capability

Capital ratios presented refer to Banca IFIS Banking Group, i.e. excluding the holding company "La Scogliera". According to the CRR perimeter, i.e. including "La Scogliera, CET1 ratio would be 11.66% and Total Capital 16.15%. SREP requirementsrefer to CRR perimeter.

Rating Overview

Rating Drivers	Commentary	Ratings
Business Model	• "The adequate franchise of the bank in niche businesses has allowed it to generate sound profitability" • "Its company profile is specialized but diversified"
Management Team	• "Management has, in our opinion, adequate depth, stability and experience and is commensurate with the group's business profile" • "Corporate culture is consistent and effectively supports business development"	Banca IFIS: • Long – term: BB+ • Outlook: Stable • Subordinated debt: BB Republic of Italy:
Balance Sheet Solidity	• "Underwriting standards are in line with industry practices and the bank's risk control framework is robust" • "Coverage is stronger than at other rated Italian banks" • "The bank's CET1 and TC are maintained with satisfactory buffers over regulatory minimum requirements"	• Long – Term: BBB • Outlook: Stable

Source: Fitch press release as of September, 28th 2017

AGENDA

I. Banca IFIS at a glance II. Financial performance III. Potential transaction IV. Appendix

Summary termsheet of the Perspective Banca IFIS Senior Preferred Unsecured Transaction

Issuer	Banca IFIS SpA
Instrument	Senior Preferred Unsecured
Issuer's Rating	BB+ Stable by Fitch
Expected issue rating	[BB+] by Fitch
Status and ranking	Direct, unconditional, unsubordinated and unsecured obligations of the Issuer ranking pari passu without any preference among themselves
Size	[•]
Maturity	5-year
Interest	[•]% per annum, payable in arrears
Governing law	English
Documentation	Banca IFIS EMTN Programme dated 29 September 2017 as duly supplemented
Listing	Irish Stock Exchange
Denominations	EUR 100,000 + EUR 1,000
Selling restrictions	As per the Issuer's EMTN Programme. Reg S, Category 2, TEFRA [D] rules apply – no communications with or into the US; no sales into Canada

Note: Summary terms should be read in conjunction with full Terms and Conditions and Base Prospectus

AGENDA

I. Banca IFIS at a glance II. Financial performance III. Potential transaction IV. Appendix

Corporate Governance: Organisation Chart

Asset Quality: Main Figures¹

	2016			2017
EUR m	Trade Receivables	Corporate Banking	Leasing	Total	Trade Receivables	Corporate Banking	Leasing	Total
Performing (EUR m) Gross Non Exposures	476	723	167	1366	527	672	124	1323
(EUR m) Net NPEs	201	172	37	410	219	151	33	404
(%) ratio NET NPEs	6.5	19.0	3.0	7.7	7.2	14.3	2.4	7.2
coverage (%) NPEs	57.7	76.3	77.7	70.0	58.4	77.5	73.0	69.5
coverage (%) Past Due	3.3	0.9	62.6	19.4	3.8	2.8	54.4	11.8
(%) Net Past Due ratio	3.8	0.2	1.4	2.6	3.5	0.1	0.7	2.1
coverage (%) UTP	33.5	46.2	67.1	45.9	36.4	46.2	62.7	43.8
(%) ratio Net UTP	1.6	15.8	1.1	3.9	2.7	11.5	0.6	3.8
Bad coverage (%) Loans	88.5	94	92.2	92	89.1	93.5	80.9	90.7
Bad (%) Net Loans ratio	1	3.0	0.5	1.2	1.0	2.7	1.1	1.3
of Risk (bps) Cost	79	8	147	n.m.	115	n.m.	58	n.m.

NPL Area – Leading Position in the Italian Market

NPL Area – Main KPIs

	2016	2017
(Net Book Value m) Loans , EUR to customers	562	799
/ (%) Net BV Gross BV Loans to customers	5.8	6.1
(#) managed Positions	1,397,957	1,511,899

• The Bank operates in Italy with a stable organization with around three hundred employees

Commentary

• High recovery rate by non judicial payment plans and legal recovery
• Purchase of loans portfolio at deep discount with respect to the Gross BV

Strategic Targets by Business Lines

Strategic assumptions, consistent with Interbanca acquisition, allow significant positive CAGR over the planned horizon for all business lines

Segment	Strategic Assumptions
	1. Extension of product offering
	2. Entering new markets and consolidating existing ones
Trade receivable	3. Strengthening of commercial network
	4. Increase the customer base and grow the retention rate
	5. Leverage from cross selling
	1. Industrialisation of the ODA (Ordinanza di Assegnazione) process and of the out of court recovery
Area NPL	2. Consolidation of leadership position in the unsecured retail and improvement of secured corporate market
	3. Improvement of out of court recovery strategies
	1. Extension of product offering of structured finance
	2. Focus on additional clients in structured finance and new segments
Corporate banking	3. Focus on M/L term lending introducing new products and new markets
	4. Products offering expansion of M/LT Financing Improvement of the run-off portfolio management
	5. Optimisation of portfolio management of workout and recovery
	6. Leverage on cross selling
	1. Increase in market share
	2. Increase in product offering
Leasing	3. Entering new markets
	4. Increase in distribution model efficiency

Disclaimer

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.

Neither the Company nor any member of Banca IFIS 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.