Banca Ifis

Investor Presentation • Mar 16, 2017

A bigger bank with bigger opportunities.

Strategic guidelines for the next 3 years (2017-2019).

March 2017

Present:	vision
1-	and mission
Past:	2016 results
2-	achieved
Future: 3-	the next 3 years - growth - challenges - opportunities

1- TODAY

Vision and Mission

VISION

We are convinced that only a bank that is beneficial to the economy in which it operates, whilst, at the same time, knows how to obtain the right amount of profit from its actions, has the dignity to look forward and plan its future. What is fundamental in the way we operate are the three pillars on which we base our work and all our business lines: control of risk-adjusted profitability, of liquidity and of capital absorption.

MISSION

Becoming the benchmark in providing financial support to micro, small and mediumsized Italian companies, also on an international level. Enable the highest possible number of debtors to return to being financially credible. Making the most of the Bank's capital and liquidity to allow businesses and households, even in difficulty, to optimize their financial resources. Providing value to the savings of individuals and companies thanks to transparent and reliable product offering.

		Target customers	Commercial Channels
	Corporate	Individuals
Short term finance			F	W
Medium term finance			F
Long term finance			F
Restructuring finance			F
Tax receivables			F
NPL			F	PH
Savings			W	PH F= Field, W=web,PH= phone

2- PAST:

2016 Results achieved

HIGHLIGHTS

(Million Euro)

Net Profit	687,9	(162,0 at 31/12/2015)	+324,7%
Equity	1.218,8	(573,5 at 31/12/2015)	+112,5%
Funding	7.037,7	(6.150,5 at 31/12/2015)	+14,4%
Loans	5.928,2	(3.437,1 at 31/12/2015)	+72,5%

GROUP KPIs	12 months 2016	12 months 2015
Cost of credit SME's	80 b.p.	89 b.p.
EPS	12,94	3,05
EPS Adjusted*	1,69	1,49
Book value/share	22,81	10,81

NET BANKING INCOME (NBI)

(Million Euro)

326,0

(404,3 in 12 months 2015)

+16,5% LFL Banca IFIS old perimeter

-19,4% change 12 months 2016/2015 (excluding gain from bond portfolio sale in 2015)

Data	Trade receivable	Corporate banking	Leasing	Area NPL	Tax receivable	G&S
2016	174,4*	3,0**	-1,2**	154,7	14,0	-19,0
2015	158,7	na	na	52,7	20,3	172,6
% Change	9,9%	na	na	193,7%	-31,2%	-111,0%

NET PROFIT

(Million Euro)

(*) Net bad loans/Net Loans to customers (within Trade receivables) **Ratio without parent company La Scogliera minority

3- Future:

The next 3 years:

• growth
• challenges
• opportunities

Objectives

Solidity

Preservation of capital Elevated level of solvency

Capital buffer for future growth opportunities

Abundance of retail funding Collateral for the Eurosystem Focus on diversification of funding

Liquidity

Business model suitable to deliver consistent and sustainable growth Activities with high risk adjusted returns Like for like improvement in all banking sectors

Profitability

BUSINESS UNITS AND SEGMENTS

(Million Euro)

data	Trade receiv.	Corporate banking	Leasing	Area NPL	Tax receiv.	G&S	Total
2016	174,4*	2,9*	-1,2*	154,7	14,0	-19,0	326,0
2015	158,7	na	na	52,7	20,3	172,7	404,3
% Change	+9,9%			193,7%	-31,2%	-111,0%	-19,4%

New adjusted segment data due to change in Internal Funding Rates as reference for 2017-2019 business plan

Data adjusted	Trade receiv.	Corporate banking	Leasing	Area NPL	Tax receiv.	G&S	Total
2016	148,5	2,9	-1,2	148,3	13,3	+14,1	326,0

(Million Euro)

Data adj IFR+12 month	Trade receiv.	Corporate banking	Leasing	Area NPL	Tax receiv.	G&S	Total
Consolidated numbers	174,4	2,9*	-1,2*	154,7	14,0	-19,0	326,0
2016 adj IFR+12 months	152,6**	0**	44,9**	148,3	13,3	22,1	381,2

NBI 381,2 in 2016 CAGR 16-19: 24%-26%

Expected growth within all segments

Strong contribution to total profitability in NPL area

Interbanca Group in break-even from 2017

Reversal of PPA: significant impact in the coming yrs

Profitability of core business more than double in the next 3 years

• Increase the customer base
• Grow the retention rate
• Diversify the financial tools to support companies
• Increase the sales people and credit managers in the field
• Strong web & digitalized processes
• Leverage from cross selling

NBI 0,0 in 2016. Positive impact from reversal of PPA. Profitable from 2017. Expected 80-90 mio Euro in 2019.

• Focus on M/L term lending introducing new products and new markets
• Focus on additional clients in structured finance and new segments
• Active portfolio management to recover corporate deteriorated assets
• Run off of the W&R portfolio

• Leverage from cross selling

• Strong contribution in gross collection arise from the Legal Factory department

• The disposal of long tail consumer portfolios will strongly positively impact on profit
• Economies of scale in acquiring and managing large numbers of credits
• Leadership in unsecured retail
• New focus on corporate and secured market

21

TAX RECEIVABLES: NICE TO HAVE SEGMENT

(Million Euro)

NBI 13,3 in 2016 CAGR 16-19: +5%/+10%

• Maintain leadership in the existing market
• New segment areas
• Maintain profitability

EXPECTED BREAKDOWN 2019 NBI BY SEGMENT

BUSINESS MODEL SUITABLE TO INCREASE PROFITS

(Million Euro)

NET PROFIT adj 89 in 2016 CAGR 16-19: 40%-45%

Excellent credit quality*: Cost of risk around 100 bp Net NPL/Loans around 1% Coverage 85%/90%

Cost/Income below 50%

Reversal of PPA: significant impact in the coming yrs

Retail deposit:	Moderate growth of the total deposits Development of the on-line bank with additional services and products
TLTRO:	700 mln euro for the next 4 yrs. Expected interest rates - 40bp
Bonds:	Ready to take advantage in the market

Securitization: Rolling existing operations

Total capital ratio* in ²⁰¹⁶ 15,7%

RWA growing according to the lending activity forecasted Strong decrease in fiscal assets Organic increase in capital according to the profitability of the bank

Total capital ratio* in ²⁰¹⁹ 17%-18%

ROE: over 15% in 2019 EPS: over 4,5 euro Book value per share: over 30 euro

Digitalized bank: substantial investments in technology

Customer experience: the new heart of the banking innovation

Management team integrated with a unique company culture

Strong, solid and simplified processes to mantain our rate of growth

Unexpected times

Excess capital in 2019 according to the present business plan

5 bn euro of potential new assets*

* Not including the effects from the consolidation of the parent company La Scogliera

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.

Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Mariacristina Taormina, in her capacity as manager responsible for the preparation of the Company's financial reports, declares that the accounting information contained in this Presentation reflects the Banca IFIS's documented results, financial accounts and accounting records. 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.

Mariacristina Taormina, in her capacity as manager responsible for the preparation of the Company's financial reports, pursuant to the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) and limited to the historical accounting data presented in the document, declares that the accounting information reflects the documented results, financial accounts and accounting records.