Banca Ifis — M&A Activity 2016

Jul 28, 2016

Acquisition of GE Capital Interbanca Group

28 July 2016

Disclaimer

• ■ This presentation does not represent a prospectus or other offering documentation, and does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Banca IFIS or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities in Banca IFIS or any member of its group or any commitment (including any financing commitment) whatsoever. Furthermore, it does not provide any form of advice (investment, tax or legal) comparable to investment advice, nor does it make any suggestions about specific financial instruments, investments or products of Banca IFIS and it decline any responsibility for eventual investment decisions (including any financing decision) made on the basis of the information contained in this presentation.
• ■ The information contained in this presentation is for background purposes only and is may be subject to amendment, revision and updating. The information, estimates, targets and projections contained herein reflect significant assumptions and subjective judgments by Banca IFIS's and Banca IFIS's managements concerning anticipated results. In addition, certain statements in this presentation are forward-looking statements under the US federal securities laws. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates" and similar expressions. By their nature, forwardlooking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Furthermore, the information, assumptions and judgments contained herein may or may not prove to be accurate or correct and there can be no assurance that any estimates, targets or projections are attainable or will be realized.
• ■ These include, among other factors, changing business or other market conditions and the prospects for growth anticipated by the Banca IFIS's and Banca IFIS's management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Banca IFIS do not undertake any obligation to update or revise any forward-looking statements (including forward looking statements), whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of Banca IFIS since the date hereof. In furnishing this presentation, Banca IFIS do not undertake any obligation to update any of the information contained herein or to correct any inaccuracies which may become apparent.
• ■ No representation or warranty, express or implied is or will be given by Banca IFIS or their respective affiliates, shareholders, directors, partners, employees or advisers or any other person as to the accuracy, completeness or fairness of the information contained in this presentation and no responsibility or liability whatsoever is accepted by the same for the accuracy or sufficiency thereof or for any errors, omissions or misstatements negligent or otherwise relating thereto.

Key Transaction Highlights

Strategic Rationale

Financial Projection

Annexes

(1) In parallel with the BoI and ECB approval process, Banca IFIS will also apply to Italian Competition Authority (Autorità Garante della Concorrenza ^e del Mercato – AGCM) in order to exclude abuses of dominant position as well as concentrations which may create or strengthen dominant positions detrimental to competition.

The application process has been started with the support of the Bank's legal advisors, Clifford Chance.

Key Transaction Highlights The Target

		H i h l i h 2 0 1 5 ** t g g s	E m n u
		N b k i i t e a n n g n c o m e	8 7
*		f f R l t i i l t i e s r o m n a n c a o p e r a o n s u	2 8
		O t i t p e r a n g c o s s	( 8 3 )
		N L t e o s s	( 4 5 )
		T l t t o a a s s e s	4 0 9 8
		L t t o a n s o c u s o m e r s	3 0 3 8
G Ca ita l ina S.r l. E F p nc e ( "F ") ing to ac r	l G Ca ita Se iz i ina iar i S.p A. E F p rv nz	G D t E e o u	2 3 9 5
	( ") "F in. ing Le as	E i t q u y	1. 0 5 9
		C E i T i C R i 1 t t o m m o n q e r a p a o u y	2 5, 7 %
	G Ca ita l E p l. Se ice S.r rv s ( "O ") Le ing p. as	T l C i l R i t t t o a a p a a o	2 5, 9 %
		I i d l ( ) m p a r e o a n s g r o s s	1. 1 5 9
		f w ( ) h ic h N P L o g ro s s	5 4 9
		N Ex ( N I i d l ) t t e p o s u r e e m p a r e o a n s	0 9 5
		C De io d t t t ov e ra g e e r ra e a s s e s	5 6, 1 %
		Ne De io d As / Eq i t t t t ty e r ra e s e s u	4 8, 1 %
		Ne N P L t	1 1 7, 4
		N P L C ov e ra g e	7 8, 6 %
(		/ Ne N P L Eq i t ty u	1 1, 1 %
) 's leg l e be fo Co it ies is it ion nt mp an y a re ac q u * ) ba 's l da d f So Int Co i Re De 2 0 1 5 te t a ur ce : er nc a ns o or s o c.		Ne N P L / Lo t a ns	3, 6 %
(	p

Key Transaction Highlights Transaction structure

(**) As results of the merger of the company of GE Capital Interbanca Group (*) Subject to price adjustment mechanism between 31/12/2015 and closing

Firsthypothesis on Banca IFIS's target structure

"We decided to exit all of the financing platforms not related toGE industrial businesses"

Jeffrey R. Immelt Chairman of the Board & Chief Executive Officer, GE February 26, ²⁰¹⁶ *

GE Capital announced it would sell approximately \$200 billion of assets by the end of 2017. As of June'16, GE has closed transactions for more than \$158 billion of assets and signed transactions for \$181 billionof assets **

(*) GE Annual Report 2015 (http://www.ge.com/ar2015/letter/ ) (**) GE 2016 second quarter performance ( http://www.ge.com/sites/default/files/ge_webcast_presentation_07222016_1.pdf )

Key Transaction Highlights Main figures

f he Sc t op e o is i io Ac t q u n	( ) ( ) f * f ba d d d f l & l Ac is i io 9 9, 9 9 % In S. A Le in i Fa in Le in in ia io t te ts to t q u n o o r nc a p. n g an c r g an as g an c op er a na bu in s es se s
le Ra io t na	b kn ho f bo h Co in Gr t m e ow w o ou p s ● de h kn le dg f l l l h fo he f l c le In I ia ise i ir in ia t ta te t t p ow e o sm a n en rp r s, w cu s on an c y c ● lo d f l d f De io is in ie is i io t te t t ts t ve p m en an re n n o ex g c n an ac q n o ne on es u w ● f ha ha ho l de i En t ty nc em en o ne w g ro up s re rs eq u ●
ha Pu rc se ice Pr	/ / ha ice is l in h, b j ice d j ha ism be d Pu Eu 1 6 0 3 1 1 2 2 0 1 5 to t to tm t tw rc se p r eq ua m n ca s su ec p r a us en m ec n ee n an lo in c s g
d ing Fu n	lo ba ( d be low bn ** ) l l be bu d A C in In Gr G im 2 i im E t te t te s g r nc a ou p ex p os ur e vs es a w re rse d ly f: Fu in in ise n g so ur ce s m a co m p r o d l de d by k ( d bn ) Co i in i Ba Co iu Eu 0. 9 5 0 G E t te t ts m m e p ro v a n ns or m ar ou n on as se ● l fu d ( bn de d lo ) i in 1 in i in Re Eu ta ts te t n g ex ce ss p os ex p ec a c s g ●
le Pe op	f ly is i io im 0 0 1 3 0 0 S Gr io Ac 5 H R, H R Ba I F I t te t t‐ tra t q u n o ap p ro x a ov er a nc a ou p p os ns ac n

(*) 0.01% owned by natural persons, non‐active shareholders

(**) Eu 2,395 bn at 31 December 2015 GE intercompany indebtedness (source: Consolidated Report)

Key Transaction Highlights

Strategic Rationale

Financial Projection

Annexes

Strategic Rationale

Complementary products with strong commitment to growing in an efficient way

Focus on SMEs & micro companies and Public Administration B2B Trade financeInvestment in retail Unsecured Distressed Loan portfolios Over 1,000,000 positions DRLPurchase of tax receivables arising from insolvency proceedings Taxreceivables

dc # He nt a ou	2 7 4 ***	dc # He nt a ou	0 5 5
f f # O ice s	2 9	f f # O ice s	5
k ( ) Ne Ba ing inc Eu t n om e m n	4 0 8	k ( ) Ne Ba ing inc Eu t n om e m n	8 7
( ) Ne Eq ity Eu t u m n	3 5 7	( ) Ne Eq ity Eu t u m n	0 9 1, 5
l ( bn ) To As Eu ta ts se	6, 9	l ( bn ) To As Eu ta ts se	4, 1
l ( ) # C ien S M Es ts	5, 0 0 0 +	l ( ) # C ien En ise ts ter p r s	8 0, 0 0 0 +

Key figures (2015)* Key figures (2015)* *

7 2 4 ***	dc # He nt a ou	5 0 5
2 9	f f # O ice s	5
	k ing inc ( ) Ba Eu n om e m n	8 7
5 7 3	( ) Ne Eq ity Eu t u m n	1, 0 5 9
6, 9	( ) l bn To As Eu ta ts se	4, 1

(**) Source: Consolidated Report as of Dec.2015 (***) As of today: 820

(*) Company's legal entities before acquisition

Strategic Rationale Focus Interbanca Group

(*) 0.01% owned by natural persons, non‐active shareholders (**) Company's legal entities before acquisition

Vision

Create the leading specialty finance Italian player with in‐depth know‐how to provide ^a complete range of financial services to the SMEs and microenterprises sectors (from working capital to restructuring and Non Performing Loans)

Mission

The leading specialty finance Italian player with indepth know‐how on SMEs:

• ●Financing working capital
• ●Financing medium to long term projects
• ●Providing leasing services for the purchase of vehicles and capital goods
• ●Supporting specialty‐finance operations
• ●Focusing on corporate impaired assets

Strategic Rationale Value creation area

۷	( ) f f f l f i b l i i i l i b i l d i R t t u n‐ o o e s s p r o a e p o s o n s m a n y n u s n e s s e n n g
۷	l h l l‐ d l d S i i i i i i t t e e c v e a p p r o a c o s m a m e u m s z e c o m p a n e s n e n n g
۷	( ) i l f i i i i i h i N t t t t t e s p e c a n a n c e o p p o r n e s n n c e a r e a s e. g. r e s r c r n g w y u u u ‐
۷	f f l l i i i i h i b h h b d b i C B I F I S I G t t t t t t t r o s s‐ s e n g o p p o r u n e s w n o e c u s o m e r a s e o a n c a a n o n e r a n c a r o u p n d i i f i l i d l d i t t t t t t t o r e r o s g n c a n m p r o e c r r e n c s o m e r e e o p m e n a n r e e n o n y v u u v
۷	i f d i d f h d l A t t t t t t t t t c e m a n a g e m e n o e e r o r a e c o r p o r a e a s s e s o p e n o r e r e e o p m e n v ; u v
۷	l d l f f h d l i i i i i i i i R t t t t t t t a o n a z a o n a n s m p c a o n o e a r g e o p e r a n g m o e
۷	i b l i h h 's d h C H R G t t t t t t t t t t t o s s n e r e s e e r a n e a r e s r c r e o s p p o r e n e r o p e p e c e r o y g y v g g g u u u w u x g w

d i L e n n g	du f ke lo d fo f b le l l‐s d l io ic i ize ie Re t t t ta ts c n o av er ag e an an cu s on m or e p ro sm a c n ● / l l fo d lo du 's l Cr in i ie iu Ba I F I S ie tu t te ts to ts os s‐s e g op p or n s r m e m ng rm p ro c nc a c n ● f de d M io t te te te ts an ag em en o r ra co rp or a as se ● de d ica d d f in i lev in ba ise Se Un In t u te tr tu t, te t p s uc re an ce er ag g r nc a e xp er ●
i F t a c o r n g	f ba 's fo l 's bu de l io io in S in In In Ba I F I te t te t to g ra n o r nc a p or nc a s es s m o ● / lec ive io in he fa f b ig l ie d ive lac i h d Se S M Es t t t ts t t ac ns ce o c n an p ro g re ss re p em en w an or ‒ f d fa in io in ire in te t t to g ra n o c c r g ; h he l s d fo Sy ie i io in io t t t tr tu t te ne rg s w op er a na uc re an rm a n sy s m s. ‒ ly S in I tro ts ta ng er ro o ‒
i L e a s n g	l l f lea du 's fa l d Cr in in Ba I F I S in ie ice t to to ts os s‐s e g o s g p ro c nc a c r g c n an v ve rsa ● / lec he f l r Se ive io in ia t te t tre t re n n s ng n g o co m m er c es ou rc es ● he in f he le f k S tre t t ts tw ng n g o ro o ag en ne or ●
i d l O M t p e r a n g o e	l f d l f he d 's S im i ica io io iza io Go Gr t t t t tr tu p n an ra na n o ve rn an ce an ou p s uc re ● d da d Op in Bu in Pr iza io t ta t er a g an s es s oc es se s s n r n ● 's l da d da d du Le Ba I F I S i te ta ve ra e on nc a co ns o s n r p ro ce re s g ● d l i da d le in he ‐l in ba k in S tro te t ng an co ns o ro on e n g ar en a ●

Strategic Rationale Main synergies

s e i t g s r o e C n y s	Op ing de l t er a m o im iza io d t t op n an io l iza io t t ra na n Sa ing in v s S Ba I F I nc a	in de l o im iza io d io l iza io by Op t t t t t er a g m o p n an ra na n ● d la i in av o g ov er p, ‒ / ( ), da he f f d bu la ke le d in i in in ic in t ty t t t a p g ca p ac ru n‐ o an or no n co re s es se s eg rg e n g ‒ , dm l a d l fu im iz in in is ive io t tra t tro tra t op g a co n n ce n nc ns ‒ , fo l s f f in ia ta cu s g co m m er c ‒ f s le d be f in ies i tu ts ca p r g ec on om o ca an sc op e ne ‒ f f g im l i ica io t s p n o ov er na nc e ‒ le l lo d bu d l fu Pe in Ba I F I S in io te tra t op re a ca nc a s es s ar ea an ce n nc ns ●
s g e n i g i d r e n n u y F s	ing Sa v s o n f fu d ing t o co s n	( ) bs i io f he fu d in i h he de i Su G E Ba I F I S t tu t t t t ts n o n g so ur ce s w nc a on es e. g. p os ● d f S i iza io tr tu t t uc re us e o se cu r n p ro g ra m s ●
	lu inc Vo m e re as e ies sy ne rg	d ha ks de he f l s fo Ne ire i in in ia ice S M Es to t to t w cu s m er s ac q u n w n g an c er v s ra ng e r ● f ' e f fe d f f by he kn In io ive ic ie im iz in j in ie t t t t cr ea se o op er a ns ne ss an e nc m ax o ex p er nc e, ow c y g ● ‐ ho d be ice t t an s p ra s w c l l in i h in he d ba ba Cr Ba I F I S In Gr t t te to os s‐s e g w nc a an r nc a ou p cu s m er se s ●
s e e u i g n r e e v n e y R s	Ne in inc t te t re s om e ies sy ne rg	f b l ha ks he d l l bu d In i i i i io in iu in in ta ty t to t t t cr ea se p ro n p os n g on m e m ‐s m a s es s se g m en an ru nn g ● f f ba 's h d l e In ip in te ta te o r nc a s p g an re a s
	Ne iss io t c om m n inc ies om e sy ne rg	f b l fo he l h he f Av in in i i i Fa in Bu in Un i in in i ice Ba ta ty t to t, t t er ag e cr ea se p ro r c r g s es s e w se rv s o nc a ● I F I S Im Bu in Un i t p re sa s es s f b l l fro f f Im in i i i in ic ie in Le in Bu in Un i t ta ty t t p ro ve m en p ro re su g m e nc as g s es s y ●

HIGHLYPRELIMINARY

HIGHLY PRELIMINARY

Strategic Rationale Preliminary price allocation **

• (*) Original Purchase price equal to Eu160 mn will be subject to price adjustment mechanism between 31/12/2015 and closing
• (**) As per IFRS3

Eu/mn

HIGHLY PRELIMINARY

d d l i S F B I F I t u n n g a n c a s a n a o n e		d b i A B F I t t s s e a s e n a n c e n e r a n c a ‐
( l i i d i d b E D t t x c e s s q u y e x p e c e y e c ) 2 0 1 6 ( f b f d ) i % i 1 5 t t t t n e o c o n s r a n y o e p o s s	6 E 7 5 ~ m n u	L i * e a s n g	E 5 5 0 ~ u m n
f i l d d i i l d i d i R t t e a a o n a u n n g r e n m a x ( d b ) 2 0 6 D 1 t e p e c e e c x y	E 3 8 0 ~ u m n	l d i & C t o r p o r a e e n n g f i t t * s r c r e n a n c e u u	E 4 0 0 ~ u m n
d i A B F t s s e a s e n a n c e l d i i R t t e v o v n g c o m m e –	E 7 5 0 ~ m n u
d i A B F t s s e a s e n a n c e i d U t t t n c o m m e n o e s –	2 0 E 5 ~ u m n
l f d i l b l T t o a u n s a v a a e	b E 2. 1 ~ u n l i t t p o e n a		b 0, 9 E 5 ~ u n l i t t p o e n a

Funding needs expected at closing Eu 1,8 bn ⁺ price paid at closing

(*) Bank Consortium commitment is based on these categories of assets; other Interbanca Group's assets potentially available for additional financing

Key Transaction Highlights

Strategic Rationale

Financial Projection

Annexes

Financial Projection Financial targets

lan Ke Ba ce y he i S t te e m s ( bn ) Eu	l To As ta t se l ds d To Fu De i ta ts n a n p os i Ne Eq t ty u k Ne Ba ing Inc t n om e	5 2 0 1 Ba I F I S nc a Gr ou p 7 6 0, 6 0 8, 0 4	2 0 1 5 In ba te r nc a Gr ou p 4 3 1, 1 8, 3	2 0 1 8 Ta t rg * e 9, 4 7, 5 1, 5 6 0 1	H I G H L Y P R E L I M I N A R Y
f i & Ke Pr t o y i Lo te ss m s ( ) Eu m n	( ) Co Inc % st om e ( ) f is k % Co R t o s Ne Inc t om e	31 % 0, 9% 1 6 2, 0	95 1% , 1, 97 % ‐4 5, 0	39 9% , 0, 67 % 2 0 0 >
Ke y Ra ios t	( ) % R O E ( ) E P S € ( ) k lue ha Bo € o v a p er s re ( ) l Ow ds Ca i l io % To Fu Ra ta ta t n n p	1 6, 3 % 3, 0 5 1 0, 8 1 * 1 5, 8 %	‐4, 1 % 2 9 % 5,	≈1 4 % 4 2 8 ** 1 7, 7 %
	/ loa ( ) N P L % ns io ( ) N P L % t c ov er ag e r a ( ) ior d a io % De te te ts t r a sse co ve rag e r a	1, 1 % 8 7, 9 % 6 5, 5 %	8 3 % 5 9 %	1, 3 % 8 4 % 5 9 %

(*) ROE adjusted, net of carry trade

(**) Ratio calculated on BancaIFIS Group without considering the minorities effect from the parent Company

100.000retail ⁺ 100.000 SMEsCUSTOMERS

Expected Eu 1 bn additionalEQUITY from the acquisition

EPS accretivesince inception, delivering Eu 4 by ²⁰¹⁸

NoneedforCAPITAL INCREASE

Key Transaction Highlights

Strategic Rationale

Financial Projection

Annexes

AnnexesLoans portfolio breakdown as of 31st December 2015

*

(*) Data refers to the target assets within the scope of acquisition