Azimut Holding — Investor Presentation 2015

Mar 10, 2016

FY 2015 Results

Short "termism" is institutionally banned

Milan, 10 March 2016

FY 2015 Results Table of contents

• FY 2015 Highlights

• Asset Management

  • Distribution
  • International business
    • FY 2015 Financials
    • Summary & Outlook
      • About Azimut

• Asset Management

• Distribution
  • International business
  • FY 2015 Financials
    • Summary & Outlook
    • About Azimut

Consistent growth leading to "the" record year so far…

4

… but Azimut's success growth story is destined to continue over time

5

Assets under Management evolution

Asset growth remains strong notwithstanding volatile markets; Net Inflows 2016 YtD at € 1.1 bn, +37%

• Total Assets more than doubled in 4 years CAGR of 22%; in line with the latest year on year growth Italy business accounts for 87% of Total Assets with a consistent solid growth Overseas business growing more rapidly thanks to new JVs and existing partners
• Net Inflows reached € 6.7bn in 2015; a CAGR of +56% since 2011
• Total Assets at the end of February at € 36.2 billion; solid Net Inflows are more than offset by a challenging market YtD

Asset Management

• Distribution
• International business
  • FY 2015 Financials
  • Summary & Outlook
    • About Azimut

Asset Management - Performance

Markets impacted by volatility, yet our clients benefited from a +1.6% Net WAP in 2015, above risk free

Short "termism" is institutionally banned

Summarized Azimut product offering

A balanced and complete product offering, focused on innovation and performance

9

Azimut funds breakdown

Well diversified AuM split across categories

AuM by Category

AuM by Underlying Asset

Cash 34.6%

Corp. Bonds 20.2%

Azimut funds breakdown

Well diversified AuM split across categories

Asset Management

Distribution

• International business
• FY 2015 Financials
  • Summary & Outlook
  • About Azimut

12

Distribution - Funds

2007 – 15 Net Inflows as a % of beginning Total Managed Assets: consistently above industry levels

Excludes foreign operations

Distribution – Leadership in Italy throughout time (1/2)

Source: Assoreti Note: Banca Fideuram figures in 2015 excludes Intesa Private Banking for lack of historical disclosure

Distribution – Leadership in Italy throughout time (2/2)

Consistent growth across various fronts has confirmed Azimut's leading positioning in Italy

15

lack of historical disclosure

• FY 2015 Highlights
• Asset Management
  • Distribution

International business

• FY 2015 Financials
• Summary & Outlook
  • About Azimut

International business: Americas

In 2015: € 1.1bn Total AuM and € 0.5bn Net Inflows (incl. acquisitions): focused on growth

Mexico:

• Increased stake in Màs Fondos (to 94%), reaffirming commitment to build a fully integrated platform
• Transforming into an "operadora" to manage own mutual funds in an open architecture platform (waiting for approval by the CNBV)

Brazil:

• Acquired Quest Investimentos, an award winning asset manager focused on local equity funds
• Increased stake in AZ Legan to extract stronger synergies and operational efficiencies

Chile:

Established AZ Andes, offering Azimut's product range to HNWI, family / multi-family offices, banks and institutional investors of the Andean region (Chile, Colombia and Peru).

USA:

Started operations of AZ Apice in 2016, a SEC Registered Investment Adviser based in Miami, offering fee based advisory services to mostly non-resident retail customers or small enterprises

International business: Europe & Middle East

In 2015: € 2.4bn Total AuM and € 1bn Net Inflows (incl. acquisitions): No. 1 independent player in Turkey

Switzerland:

Obtained LiCol authorisation in Jan. 2016

Monaco:

Reached €1.5bn AuM, doubled since acquisition in 2011

Turkey:

• Merged Azimut Bosphorus into Azimut Portfoy to extract stronger commercial synergies, operational efficiencies and consolidating further the Azimut brand in Turkey, in the process of merging also AZ Notus Portfoy
• Largest independent asset management player with AuM in the region of € 700mn with a market share of ca. 5% (excluding pension funds).
• Includes investments in AZ Fund Global Sukuk, the world's largest UCITS and Shariah compliant fund investing in Islamic bonds, and AZ Fund Lira Plus, aiming to extract a positive hard currency return from local interest rates.

International business: Asia-Pacific

In 2015: € 1.3bn Total AuM and € 1.2bn Net Inflows (incl. acquisitions): well ahead of schedule in Australia

Asia:

• Market leader and specialist in RMB Offshore (CNH). Actively marketing Azimut Group products to Asian investors
• Signed agreement with China Universal to provide advisory services
• Increased stake in AZ Athenaeum (Singapore) to extract stronger synergies and operational efficiencies

Australia:

• Booming start: acquired 9 practices since the first deal in April 2015
• 6 practices in 2015 (ca. € 1bn Assets at end-2015)
• 3 practices in 2016 (ca. € 1.5bn Assets at March 2016)
• Business Plan targets to reach € 5.3bn in the 12 years since launch

Kicked-off local production

• Acquired a majority stake (76%) in AZ Sestante, operating as trustee of Australian domiciled mutual funds

• More JVs expected in 2016

• FY 2015 Highlights

• Asset Management
  • Distribution
  • International business

FY 2015 Financials

• Summary & Outlook
• About Azimut

Consolidated reclassified Income Statement IAS/IFRS Compliant

Income Statement

€/000	2015 FY	2014 FY	Change %
commission income Entry	10 151 ,	9 213 ,
fees Recurring	484 567 ,	393 611 ,
Variable fees	158 466 ,	108 231 ,
Other income	10 267 ,	8 134 ,
Insurance revenues	44 118 ,	33 065 ,
Total revenues	707 569 ,	552 254 ,	+28%
Distribution costs	(290 762) ,	(256 326) ,
load products Commission on no	-	(4 718) ,
Personnell and SG&A	(125 831) ,	(87 309) ,
/provisions Depreciation , amort	(11 110) ,	(10 813) ,
Operating costs	(427 703) ,	(359 166) ,
profits Operating	279 866 ,	193 088 ,	+45%
income Interest	14 392 ,	10 082 ,
Net operating costs non	(5 065) ,	(6 273) ,
Interest expenses	(11 015) ,	(12 051) ,
Profit before tax	278 178 ,	184 846 ,	+50%
Income tax	(23 555) ,	(93 761) ,
Deferred tax	(4 636) ,	2 156 ,
profit Net	249 987 ,	93 241 ,
Minorities	2 566 ,	1 145 ,
Consolidated Profit Net	247 421 ,	92 096 ,	+169%
Consolidated Profit (excluding one-offs*) Net	247 421 ,	174 308 ,	+42%

Source: Company data Note*: net of extraordinary costs in 4Q14 largely due to the agreement with the tax authority

Net Financial Position IAS/IFRS Compliant

Net Financial Position

€/000	31/12/2015	30/06/2015	31/12/2014
due banks: Amounts to	(30 096) ,	(30 233) ,	(40 272) ,
Senior Loan	(30 096) ,	(30 133) ,	(40 172) ,
Trademark lease back -	-	(100)	(100)
issued: Securities	(221 826) ,	(219 221) ,	(216 685) ,
Azimut 11-16 senior 2 5%	(778)	(827)	(840)
convertible bond Azimut 13 20 2 125% -	(221 048) ,	(218 394) ,	(215 845) ,
TOTAL DEBT	(251 922) ,	(249 454) ,	(256 957) ,
CASH AND CASH EQUIVALENTS	588 215 ,	589 081 ,	569 343 ,
NET FINANCIAL POSITION	336 293 ,	339 627 ,	312 386 ,

• Treasury shares are not booked within the NFP (ca. 7.2% of shares are linked to the convertible bond)
• NFP at the end of December is net of:
• €103mln ordinary dividends paid (May 2015)
• €10mln Senior loan partial repayment (June 2015)

Dividend policy

Significant rise in dividend policy, notwithstanding investments and a best-in-class growth

• Total ordinary dividend proposed: €1.5ps* (+92% vs. previous year); a payout of 80%
• €0.5ps will be paid in May as per previous years
• The remaining €1.0ps will be paid within 30 days of the elimination of the Azimut Group from the Securities Investment Firms (SIM) register, currently under approval by Bank of Italy.

Source: Company data Note*: Subject to AGM approval and to the removal of the Azimut Group from the Securities Investment Firms (SIM) register by Bank of Italy. 2014FY EPS refers to Net Profit excluding one-offs

• FY 2015 Highlights
• Asset Management
  • Distribution
  • International business
    • FY 2015 Financials

Summary & Outlook

About Azimut

Summary & Outlook

The business model is resilient; focused on capital deployment and defending client's Assets

• 2015 has been a remarkable year for Azimut
• Record financial results
• Record Inflows
• Positive net performance to clients
• Strong growth on the overseas business
• 2016 looks more challenging
• Markets significantly more volatile YtD
• More conservative investor appetite
• Low yield environment set to continue
• However the business model is robust:
• Good cost flexibility
• Strong cash generation and balance sheet
• Resilient through market cycles
• New product opportunities in volatile environments

Areas of focus for 2016:

• Capital preservation for clients
• Consolidate International presence
• Resolve regulatory capital issue
• Product innovation (including Alternatives)

Update on 2015-2019 business plan

First year of the business plan shows Azimut is well on track

Short "termism" is institutionally banned

Note*: Subject to AGM approval and to the removal of the Azimut Group from the Securities Investment Firms (SIM) register by Bank of Italy.

• FY 2015 Highlights
• Asset Management
  • Distribution
  • International business
    • FY 2015 Financials
    • Summary & Outlook
      • About Azimut

Azimut Group Structure

Note (1): Controls distribution companies M&O Consultoria, FuturaInvest and Azimut Brasil Wealth Management.

Short "termism" is institutionally banned

Note (2): controls AZ Sinopro Insurance Planning Ltd Note*: merger into Azimut Portfoy subject to regulatory approval

Azimut Group business overview

Note*: Mexico AM business still under authorization

Our world-wide presence

Where we are and where we want to be: at least 10% of AuM outside Italy by the end of 2019

Short "termism" is institutionally banned

30

International expansion – Turkey

2011: Start of a building block leading us to become the largest independent player in Turkey

• In 2011 Azimut entered the Turkish market through AZ International Holdings S.A. ("AIH") with the aim of growing on both the production and distribution sides of the business
• In October 2014 Azimut acquired 70% of Notus, a Turkish independent asset management company. Notus manages discretionary portfolio mandates for individual and corporate clients ensuring diversified and efficient asset allocation plans across local and international markets.
• In December 2014 Azimut acquired 100% of AZ Global (renamed Azimut Portfoy) to continue its growth plans in Turkey
• In January 2015 Azimut reached an agreement to acquire 70% of Bosphorus Capital (later merged into Azimut Portfoy).
• In September/October 2015 Azimut announced the reorganization of it's Turkish platform to extract stronger commercial synergies and operational efficiencies, concentrating it's business in Azimut Portfoy
• The commercial and industrial integration within Azimut Portföy creates the Turkish largest independent player with a 5% market share

Short "termism" is institutionally banned

International expansion – Brazil

2013: Azimut enters LATAM with a JV in the Brazilian asset management market

• On 10 October 2013 Azimut acquired 50% of Legan (increased to 92% in November 2015), an asset management company with excellent track record.
• Subsequently, on 13 February 2014, Azimut completed the acquisition of 50% of AZ FI Holding (later increased to 100% and renamed Azimut Brasil Wealth Management Holding).
• Azimut WM Holding controls M&O (financial services through advisory on asset allocation, funds selection and financial education) and FuturaInvest (dedicated to asset management services through funds of funds and managed accounts).
• In February 2015 Azimut completed the acquisition of a 50% stake in LFI (later renamed Azimut Brasil WM), focused on Wealth Management
• In April 2015 Azimut announced the acquisition of a 60% stake in award-winning Quest Investimentos, managing mostly equity products and employs one of Brazil's best-performing fund managers.

Short "termism" is institutionally banned

International expansion – Mexico

2014: Azimut expands LATAM with a JV in the Mexican market

• On 17th June 2014 Azimut through its subsidiary AZ International Holdings S.A. ("AIH") acquired 82.14% of Profie S.A. (renamed AZ Mèxico) a Mexican holding company controlling the entire equity capital of Más Fondos S.A. ("Más Fondos"), Mexico's largest pure independent asset management distribution company.
• Through this partnership, Azimut and Más Fondos will cooperate to develop an integrated platform centred on a proprietary financial advisors network working in an open-architecture environment to exploit the growth potential of the Mexican market.
• In 2015 Azimut increased its stake in Màs Fondos (to 94%), reaffirming commitment to build a fully integrated platform

International expansion – China / HK

2010: Definition of a frame agreement with local entrepreneurs/partners

• Azimut's partnership philosophy has been implemented also in China by involving local partners with an expertise in the local asset management industry.
• An Zhong (AZ) Investment Management in Hong Kong is the Holding company controlling two operating subsidiaries. Azimut, through the Holding company, oversees them and has relocated three Senior PMs from Luxembourg. Today Azimut manages one of the largest RMB fund in the world
• Through the operating subsidiaries Azimut aims at creating a regional hub and developing local production and distribution of asset management products and investment advisory services with a focus on qualified investors.

International expansion – Taiwan

2013: Azimut widens its Asian presence with a JV in the distribution business in Taiwan

• On 27th June 2013 AZ International Holdings S.A. ("AIH") and An Ping Investment (later renamed AZ Sinopro Financial Planning), a Taiwanese holding controlling the entire capital of Sinopro Financial Planning Taiwan Limited ("Sinopro"), signed an investment and shareholders agreement to start a partnership in the distribution of asset management products in Taiwan.
• In particular, Azimut purchased 51% of An Ping Investment's capital from its existing shareholders for an investment of ca. € 3mn to finance the business development activities, and has also call/put option rights.
• The partnership increases Azimut presence in the Asian market together with a strong and dedicated financial planning and distribution partner, which will contribute in developing the financial knowledge and will respond to planning and financial consulting needs of Taiwanese investors

International expansion – Singapore

2013: Azimut signs a JV with a Singapore based asset management company

• On 2 nd October 2013 Azimut and Athenaeum Ltd, a Singapore independent asset management company, have signed an investment and shareholders agreement to start a partnership in the local market.
• Azimut initially purchased 55% of Athenaeum's corporate capital through a capital increase, which was employed to finance the business plan.
• Through this partnership, Azimut and Athenaeum will aim at maximising the potential of Athenaeum's existing funds and develop an internal sales structure to service institutional and HNWI investors in South East Asia. In addition, the partners will work to leverage these asset management competences via Azimut international presence and clients.
• In January 2016 Azimut acquired the remaining 45% to extract stronger commercial synergies and operational efficiencies abroad.
• The local partners agreed to continue working together over the long term to grow the business in Singapore and focus on managing the local products as well as cultivating relationships with family offices and HNWI in the region.

International expansion – Australia

2014: Azimut signs an agreement to enter the Australian asset management market

• On November 3 rd , 2014, Azimut acquired a 93% stake in Next Generation Advisory ("NGA"), an Australian based newco established with the purpose of consolidating financial planning businesses providing asset allocation and advisory services to local retail, HNW and institutional clients.
• The business plan targets to reach AUD 7.6bn of consolidated AuM (ca. €5.3bn) in the next 12 years
• In the first year of operations the plan is well ahead of schedule
• The Australian wealth management industry is the largest market in the Asia Pacific region and the 4th largest in the world. Australia has one of the world's leading pension system (Superannuation), which has underpinned the growth of the Australian asset management industry.
• In August 2015, a majority stake (76%) was acquired in Ironbark Funds Management (RE) Ltd (renamed AZ Sestante), a company operating as trustee and manager of Australian mutual funds, necessary to launch and offer funds locally.

International expansion – Monaco

2011: Agreement for a 51% stake acquisition

• On 10th May 2011 Azimut through its subsidiary AZ International Holdings S.A. ("AIH") signed a binding frame agreement with CGM (Compagnie de Gestion privée Monegasque); the acquisition of a 51% stake has been completed on 30th December 2011.
• The partnership added new competences to Azimut Group targeting UHNWI also thanks to CGM's operating subsidiary in Italy.
• Current CGM management entered Azimut's shareholders' agreement.

Azimut pre-IPO history

20+ years of growth and evolution

Azimut 2004-2015

A dynamic Group at the verge of product and corporate innovation

Azimut's shareholder base

Timone Fiduciaria represents the shares of around 1,400 individual shareholders (Promotori, employees, managers working for Azimut), tied up in a strong shareholders' agreement

Total shares issued: 143.3m One of the few true public companies in Italy

Source: Azimut, Consob, Thomson Reuters. Mar, 2016

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Timone – the Shareholders agreement

A strong agreement for a long term commitment
Participants	Promotori, employees and management organised in separate areas
Duration	3 years automatically renewed unless the absolute majority of the voting rights refuses. Already renewed in 2010 and 2013
Share lock-up	Part of each participant's shares are locked following a table based on the tenure within the Agreement. The residual can be sold at any time but subject to pre-emption right amongst other participants. The price for this transfer is a 30 days rolling average.
	Years matured*	% of locked shares
	< 3	75%
	3 - 6	66%
	6 - 9	33%
	> 9	25%

Governance A share trust includes 100% of the voting rights of the participants.

A committee is responsible for managing and monitoring the participants' obligations and rights under the agreement

Short "termism" is institutionally banned

Product innovation: Azimut success story

Innovation has and will be one of Azimuts' key success factors

Despite a volatile market environment, new products have helped to defend the existing client base and attract net new money from existing and new customers

• A successful turnaround of the product offering including both strategic and tactical solutions:
• Products launched since 2012 weigh 29% of AUM
• Products launched since 2008: 58%
• Products launched from 2005: 86%

New products by year (AuM %)

Luxembourg Funds breakdown

Fund of funds have the same margin as in house funds

	TARGET	INSTITUTIONAL TARGET, BOND TARGET 2015, BOND TARGET GIUGNO 2016, INT. BOND TARGET GIUGNO 2016, BOND TARGET SETT. 2016, BOND TARGET DICEMBRE 2016, BOND TARGET 2016 EQUITY OPTIONS, BOND TARGET 2017 EQUITY OPTIONS, BOND TARGET 2018 EQUITY OPTIONS, BOND TARGET 2019 EQUITY OPTIONS
	0-30% EQUITY	F1 CONSERVATIVE, CONSERVATIVE, CORPORATE PREMIUM , CGM OPPORTUNISTIC CORPORATE, CGM OPPORTUNISTIC GOVERNMENT, SOLIDITY, INCOME, TOP RATING
	0-70% EQUITY	EUROPEAN DYNAMIC, DIVIDEND PREMIUM, STRATEGIC TREND
	0-100% EQUITY	F1 ABSOLUTE, TREND, ITALIAN TREND, JAPAN CHAMPION, AMERICAN TREND, EUROPEAN TREND, LONG TERM VALUE, CGM OPPORTUNISTIC EUROPEAN, CGM OPPORTUNISTIC GLOBAL, GLOBAL GROWTH SELECTOR, ASIA ABSOLUTE
	MARKET NEUTRAL	F1 ALPHA PLUS, MARKET NEUTRAL, LIRA PLUS
	QUANT	QBOND, QPROTECTION, QTREND, QINTERNATIONAL
	MACRO	MACRO DYNAMIC TRADING, GLOBAL MACRO, MACRO VOLATILITY
	ILS	CAT BOND FUND
	EQUITY LONG/SHORT	ACTIVE SELECTION, CORE BRANDS
	RENMINBI	RENMINBI OPPORTUNITIES, RENMINBI OPP. FIXED INCOME
	CASH MGMT	CASH OVERNIGHT, CASH 12 MESI
	HYBRID	HYBRID BOND
	OTHER	OTHER SINGLE MANAGER (US INCOME, GLOBAL SUKUK, CARRY STRATEGIES, ETC.)
	FOFs	MULTIMANAGER FOFs

Distribution – Client segmentation and geography

High quality clientele concentrated in strategic geographic areas

	% of FA	% of AuM
North	80%	78%
Centre	15%	18%
South	5%	4%

Azimut and Entrepreneurs

While remaining focused on the core business of asset management, Azimut is enlarging its scope of activities by supporting entrepreneurs and fostering the "Sistema Italia"

Main growth trend - Clients, FAs and AuM

Continuous growth throughout the decade, notwithstanding turbolent years

Financial Advisors

Clients ('000)

⁴⁷ Source: Company data as of 31/12/2015

2009-2015 A beta stock with a strong P&L

Solid financial performance (€mln)

Contacts & Corporate calendar

IR Contacts		Upcoming events
Vittorio Pracca	tel. +39.02.8898.5853	28 April 2016: Annual General Meeting
Gabriele Blei	tel. +39.02.8898.5849	5 May 2016: Board of Directors approval of 1Q 2016
Email	investor.relations@azimut.it	results
Website	www.azimut.it	28 July 2016: Board of Directors approval of 1H 2016 results

Disclaimer – Safe harbour statement

This document has been issued by Azimut Holding just for information purposes. No reliance may be placed for any purposes whatsoever on the information contained in this document, or on its completeness, accuracy or fairness. Although care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable, the contents of this presentation have not been verified by independent auditors, or other third parties.

Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or any of its members, directors, officers or employees or any other person. The Company and its subsidiaries, or any of their respective members, directors, officers or employees nor any other person acting on behalf of the Company accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

The information in this document might include forward-looking statements which are based on current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and investments, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. No one undertakes to publicly update or revise any such forward-looking statement.

The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.

Any forward-looking information contained herein has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary. This document does not constitute an offer or invitation to purchase or subscribe for any shares and/or investment products mentioned and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

The information herein may not be reproduced or published in whole or in part, for any purpose, or distributed to any other party. By accepting this document you agree to be bound by the foregoing limitations.