Azimut Holding — Investor Presentation 2016

Mar 9, 2017

Azimut Holding S.p.A. FY 2016 Results

Short "termism" is institutionally banned

Milan, 9 March 2017

FY 2016 Results Table of contents

• Asset Management
• Distribution
  • International business
  • FY 2016 Financials
    • Summary & Outlook
    • About Azimut

FY 2016 Highlights

• Asset Management
• Distribution
  • International business
  • FY 2016 Financials
    • Summary & Outlook
    • About Azimut

FY 2016 Highlights

	Best-in-class performance leading to solid P&L results despite a volatile year
Financial Results	FY 2016 Total Revenues: €706mln (vs. €708mln in FY 2015) Recurring fees at €519mln (vs. €485mln in FY 2015) Variable fees at €131mln (vs. €158mln in FY 2015) FY 2016 Net Profit: €173mln (vs. €247mln in FY 2015)
Inflows & AUM	Total Assets at 31/12/2016: €43.6bn, up 19% vs. 2015 (€45.3bn as of 28/2/2017) Net Inflows in 2016: €6.5bn (+€1.2bn in the first two months of 2017) 2016 Net New Money at 18% of beginning Total Assets
Capital Management	Out of the CRD IV regime Net Financial Position, post €200mln Dividends paid in 2016, at €192mln (€336mln as of end-2015) 2017 DPS at €1.0(1) (ca. 77% Payout) Initiated share buyback plan in February 2017. First €25mln tranche already executed
Performance	In 2016, total net weighted average performance at +3.6% vs. +1.7% Italian Industry YtD(2) In 2017 at +1.6% vs. +1.0% Italian Industry

Short "termism" is institutionally banned

A snapshot of 4Q Results

Strong recurring fees with upside coming from variable fees

5

FY 2016 Highlights

Top line results demonstrate a good recovery following a difficult 1Q

Source: Company data

FY 2016 Highlights

Although improvements need to be made on the cost side (and will be tackled going forward)

Short "termism" is institutionally banned

Evolution of Assets under Management

3-Y Total Assets CAGR at +22% thanks to strong Net Inflows and above industry performance

• Total Assets at all time high at €45.3bn
• Net Inflows continue to be strong throughout market cycles (€6.5bn in 2016; almost in line with the 2015 record despite different markets)
• Good contribution from the overseas business, at 18% of Total Assets at end-2016
• Solid performance at +3.6% in 2016 vs +1.7% of the Italian Industry
• Net performance YtD at +1.6% (vs. +1.0% Italian Industry)

Assets Under Management by portfolio:

Source: Company data Note*: through AZ International Holdings

00%

05%

FY 2016 Highlights

Asset Management

• Distribution
• International business
  • FY 2016 Financials
  • Summary & Outlook
    • About Azimut

Azimut Net Weighted Average Performance

More than doubled the industry in 2016: +3.6% vs. +1.7%. In 2017 YtD at +1.6% vs +1.0%

A closer look into funds performance

Strength in performance across asset classes and time horizons

31/12/2016 Funds by Top 5 AUM at				Quartile
Name	Category	(€bn) AUM	1-Y	2-Y	3-Y
Trend 1.	Flexible	2,5
Hybrid Bonds 2.	Bond	1,9
3. Cash Overnight	Cash	1,8
Arbitrage 4.	Flexible	0,9		n.a.	n.a.
Dividend 5. Premium	Equity	0,9

Top 5 Funds by 2016 Performance				Quartile
Name	Category	Perf.	1-Y	2-Y	3-Y
1. Real Plus	Flexible	36%		n.a.	n.a.
2. Trend	Flexible	16%
3. International Bond	Bond	8 %
4. Asset Power	Flexible	8 %
5. Global Curr. & Rates	Bond	7 %

Source: Company data, Morningstar. Note: Arbitrage Plus falls in the Top 5 by Net Inflows but was excluded due to lack of historical data. Includes AZ Fund 1 products only.

Note: Performance of Top 5 is based on peer quartile rankings and Morningstar data. Overall Product Performance is based on Morningstar public categories

Azimut funds breakdown

Well diversified AuM split across categories

AuM by Category

AuM by Underlying Asset

Azimut funds breakdown

Well diversified AuM split across categories

Short "termism" is institutionally banned

FY 2016 Highlights

Asset Management

Distribution

• International business
• FY 2016 Financials
  • Summary & Outlook
  • About Azimut

Asset Gathering in Italy

2007-2016: Net Inflows over AUM are consistently above industry levels -5%

Net New Money as % of beginning AUM in Italy

15

Assogestioni excludes foreign operations

Distribution Landscape in Italy

Despite our overseas "distraction", Azimut remains among the top ranks in Italy on distribution

16

Distribution – focus and priorities

Key priorities and organizational platform

• Focus on revenues and sustainable growth
• Technology as a means to "save time" to both Financial Advisors and Clients (full on digitalization process under way)
• Training & Development for our Financial Advisors to mature more competencies (i.e. specializations)
• New organizational structure and new management team for Azimut Capital Management
• Strengthening of the three main lines of business:

Structure reorganization and brand rationalization with 5 new geographical areas

• Recruitment of Top Financial Advisors / Private Bankers with focus on growth and net profitability

• New management team, new organization, development of new products & services dedicated to this client segment

• FY 2016 Highlights

• Asset Management
  • Distribution

International business

• FY 2016 Financials
• Summary & Outlook
  • About Azimut

Azimut international presence

Azimut overseas business reached 18% of Total Assets at end -2016

International business: Americas

€ 2bn Total AuM and € 0.5bn Net Inflows (incl. acquisitions): focused on growth and synergies

Brazil:

• Pursued re-organization to increase synergies / efficiencies
• Strong growth in AUM through Quest thanks to launch of new products and good performance
• Acquired several WM companies and continued with recruitment of new FAs

Chile:

Ongoing marketing activities to local institutional investors of AZ Fund key products

Mexico:

Transformation into an "operadora" completed with launch of first two mutual funds

USA:

AUM and clients on-boarding under way. Synergies with Brazilian operations yet to be fully exploited

International business: Europe & Middle East

€ 2.6bn Total AuM and € 0.6bn Net Inflows (incl. acquisitions): consolidate and grow

Switzerland:

• Obtained LiCol authorisation in 2016
• Recruitment of private bankers started
• Migration of Sogenel almost completed. Assessing additional M&A opportunities

Monaco:

Announced intention to acquire 100% of CGM (doubled its AUM to €1.6bn in 5 years)

Turkey:

• Continued to launch innovative local products and generating a solid performance despite tough local market environment
• Strong distribution performance thanks to a proprietary FA network
• Counter balancing irrational behavior from 3 rd party distributors

International business: Asia-Pacific

€ 3.1bn Total AuM and € 1.8bn Net Inflows (incl. acquisitions): focus on growth in Australia

Asia:

• China / HK: Actively marketing Azimut Group products to Asian investors and transformed Chinese license into local AM licensed entity to manage own local funds
• Singapore: began investment in distribution by hiring PBs and developing local structure

Australia:

• Kicked-off local production with acquisition of Sigma funds management
• Expanded considerably AZ NGA franchise through M&A and organic growth

• JV activity to continue in 2017

• FY 2016 Highlights

• Asset Management
  • Distribution
  • International business

FY 2016 Financials

• Summary & Outlook
• About Azimut

Consolidated reclassified Income Statement IAS/IFRS Compliant

Income Statement

€/000	2016 FY	2015 FY
Entry commission income	9 826 ,	10 151 ,
fees Recurring	518 866 ,	484 567 ,
Variable fees	130 770 ,	158 466 ,
Other income	611 7 ,	10 267 ,
Insurance revenues	38 575 ,	44 118 ,
Total Revenues	705 648 ,	707 569 ,
Distribution costs	(325 436) ,	(290 762) ,
Personnell and SG&A	(158 984) ,	(125 831) ,
/provisions Depreciation , amort	(15 920) ,	(11 110) ,
Operating costs	(500 340) ,	(427 703) ,
Operating Profit	205 308 ,	279 866 ,
income Interest	(3 033) ,	14 392 ,
Net operating costs non	(6 323) ,	(5 065) ,
Interest expenses	(11 063) ,	(11 015) ,
Profit Before Tax	184 889 ,	278 178 ,
Income tax	(19 281) ,	(23 555) ,
Deferred tax	11 696 ,	(4 636) ,
Profit Net	177 304 ,	249 987 ,
Minorities	4 619 ,	2 566 ,
Consolidated Profit Net	172 685 ,	247 421 ,

Net Financial Position IAS/IFRS Compliant

Net Financial Position

€/000	31/12/2016	30/06/2016	31/12/2015
due banks: Amounts to	(20 051) ,	(20 000) ,	(30 096) ,
Senior Loan	(20 051) ,	(20 000) ,	(30 096) ,
issued: Securities	(226 522) ,	(223 723) ,	(221 826) ,
Azimut 11-16 senior 2 5%	-	-	(778)
convertible bond Azimut 13 20 2 125% -	(226 522) ,	(223 723) ,	(221 048) ,
TOTAL DEBT	(246 573) ,	(243 723) ,	(251 922) ,
CASH AND CASH EQUIVALENTS	438 832 ,	438 066 ,	588 215 ,
NET FINANCIAL POSITION	192 259 ,	194 343 ,	336 293 ,

• 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 2016 is net of:
• €200mln ordinary dividends paid (May and November 2016)
• €10mln Senior loan partial repayment (June 2016)

Dividend policy

Maintained an almost 80% Payout despite a more challenging year. Significant step-up in DPS since 2013

• Total ordinary dividend proposed: €1.0p.s.*; a payout in line with last year at ca. 77%
• Initiated a share buyback plan in Feb. 2017
• Can buy up to 20% of share capital, as per latest AGM approval (as of 9/3/2017 own shares at 8.3%)

• First tranche of €25mln already executed

• FY 2016 Highlights

• Asset Management
  • Distribution
  • International business
    • FY 2016 Financials

Summary & Outlook

About Azimut

Summary

A sound set of results together with concrete capital management actions

• Demonstrated Azimut's ability to grow at a significantly higher pace than competition (3-Y Total Assets CAGR +22%)
• Delivered on capital management:
• €200mln (€1.5p.s.) ordinary dividends paid in 2016, equivalent to an 81% payout
• Initiated buyback plan in 2017 with the first €25mln tranche completed
• Proposed a 2017 DPS of €1.0*, equivalent to a ca. 77% Payout, in line with last year and with Business Plan guidelines
• Strong performance of our funds:
• Azimut net weighted average performance well above industry in 2016 (+3.6% vs. +1.7%) as well as in 2017 YtD (+1.6% vs. +1.0%)
• €36mln performance fees already cashed in January and February 2017
• Net Inflows, including JVs and the international business, remain at record levels with €6.5bn in 2016 and €1.2bn in the first two months of 2017
• Vigilant on regulatory framework; any new introduction will be fully manageable in due course (i.e. changes to performance fees mechanism)

Areas of focus going forward

Cost efficiencies and rationalizations will contribute to a bottom line and profitability improvement

Update on 2015-2019 business plan

Two years into the plan most targets are ahead of schedule

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Note (1): As of Feb-17. Note (2): as of FY16. Note (3): Average yearly Net Inflows for 2015-2016. Note (4): Proposed 2017 DPS subject to AGM approval. Note (5): 2019 Target Net inflows refers to an annual average across the 5 year business plan

• FY 2016 Highlights
• Asset Management
  • Distribution
  • International business
    • FY 2016 Financials
    • Summary & Outlook
      • About Azimut

Azimut Group Structure

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Note (1): Controls distribution companies M&O Consultoria, FuturaInvest and Azimut Brasil Wealth Management. Note (2): controls AZ Sinopro Insurance Planning. Note (3): Azimut acquired the remaining 49% and is in the process of being merged into Azimut Capital Management SGR. Note (4): Azimut reached an agreement to acquire the remaining 49% as of 31/12/2017.

Azimut Group business overview

Short "termism" is institutionally banned

Source: Company data 33

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

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 (later merged into AZ Quest), 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.

37

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.

Short "termism" is institutionally banned

International expansion – Monaco

51% CGM (Asset management) CGM Italia SIM 100% AZ International Holdings (2010)

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.
• In 2016, Azimut reached an agreement to acquire the remaining 49% as of 31/12/2017

Azimut pre-IPO history

20+ years of growth and evolution

Azimut post-IPO development

A dynamic Group at the verge of product and corporate innovation

43

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

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: 62%
• Products launched from 2005: 86%

Note: Lux funds only

Short "termism" is institutionally banned

Summarized Azimut product offering

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

Source: Azimut as of 31/12/2016

Distribution – Client segmentation and geography

High quality clientele concentrated in strategic geographic areas

Client segmentation based on AuM volumes Geographical distribution of FAs (1,637 as of 31/12/2016)

• Smaller Wealth: below € 12,500
• Medium Wealth: from € 12,500 to € 125,000
• Affluent: from € 125,000 to € 500,000
• High Net Worth Individuals: above € 500,000

	% of FA	% of AuM
North	78%	83%
Centre	14%	13%
South	8%	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

Total Assets (€bn)

Clients ('000)

2009-2016 A beta stock with a strong P&L

Solid financial performance (€mln)

Source: Company data as of 31/12/2016 51 Note: 4Q14 Net Profit excludes one-offs

Contacts & Corporate calendar

IR Contacts		Upcoming events
Vittorio Pracca	tel. +39.02.8898.5853	27 April 2017: Annual General Meeting
Gabriele Blei	tel. +39.02.8898.5849	4 May 2017: Board of Directors approval of 1Q 2017
Email	investor.relations@azimut.it	results
Website	www.azimut-group.com	27 July 2017: Board of Directors approval of 1H 2017 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.