Equita Group — Investor Presentation 2021

Oct 12, 2021

STAR CONFERENCE FIRST HALF 2021 RESULTS

October 12th – 14th, 2021

THE EXPERTS OF FINANCIAL MARKETS

Index

• EXECUTIVE SUMMARY Page 3
• H1'21 RESULTS (KEY FINANCIALS) Page 4
• RECENT DEVELOPMENTS & INITIATIVES Page 9
• OUTLOOK 2021 AND CLOSING REMARKS Page 13
  • APPENDIX Page 17

EXECUTIVE SUMMARY

H1'21 FINANCIAL RESULTS

The strongest semester since IPO

Double digit increase in client-related revenues, consolidated net revenues and net profits

RECENT DEVELOPMENTS & INITIATIVES

Covid-19

Back to a "new" normal, with a mix of remote and in-person meetings, roadshows and conferences

Rankings

• Standing as leading independent broker in Italy confirmed
• Further consolidation of our leading position in M&A, ECM and DCM league tables, especially on Mid-Small Caps
• Winner of the Private Debt Awards 2021

Business initiatives

• New round of fundraising, bringing total commitments of Equita Private Debt Fund II to €178.5m (€200m target)
• First closing of Equita Smart Capital ELTIF expected to occur soon. New distributors are likely to come by year-end (€140m target)

Regulatory framework

New prudential framework (IFR/IFD) expected to free some capital to be invested in products, M&A and shareholders' remuneration

OUTLOOK 2021

Positive expectations on full-year results

• Optimistic to make significant progress toward 2022 business plan targets and possibly to achieve them one year in advance
• Dividend proposal for 2022, absent significant market changes, expected to be significantly higher than the €0.20 dividend per share distributed in 2021, thanks to positive expectations on H2'21 results and new regulatory framework on capital

Index

H1'21 RESULTS (KEY FINANCIALS)

SNAPSHOT ON FIRST HALF 2021 CONSOLIDATED RESULTS

KEY CONSOLIDATED HIGHLIGHTS

€46.1m (+58% vs H1'20)	€11.4m (+123% vs H1'20)	39% (as of 30 June 2021)		€1.0bn (+6% vs FY'20)
Net Revenues	Net Profits (post minorities)	Return on Tangible Equity (1)		Assets under Management
	DIVISIONAL	PERFORMANCE
Business Breakdown		First Half Net Revenues (€m)		Second Quarter Net Revenues (€m)
7%	Global Markets	24,8 +36% 18,2	Global Markets	12,3 +35% 9,1
H1'21 39% 54%	Investment Banking 9,0	18,1 +102%	Investment Banking	12,0 +139% 5,0
Global Markets Investment Banking Alt. Asset Management	Alt. Asset 3,2 Management 2,0	Of which fees +62% +34%	Alt. Asset Management Q2'20 Includes €1.2m positive mark-to market on some AM investments (Blueglen) (vs €0.3m in Q2'21)	1,6 Of which fees (25%) 2,1 +38% 2021 2020

DIVISIONAL PERFORMANCE

INVESTMENT BANKING NET REVENUES (€M) MARKET STATISTICS (H1'21 VS H1'20)(2)

ALTERNATIVE ASSET MANAGEMENT NET REVENUES (€M) ASSETS UNDER MANAGEMENT (€M)

Portfolio Management Private Debt SPAC / Private Equity Blueglen

100

2015 2016 2017 2018 2019 2020 Q1'21 H1'21

^{150 49 39}

^{681 880 744 742 766 66}

^{100 200 232 232}

980 1.019 944 974 998

^{251 292 404}

^{251 358}

100

150

654

(1) Source: ASSOSIM; market shares' figures based on quarterly volumes for third parties; "Equities" referred to equities brokered on MTA segment, "Bonds" referred to bonds brokered on DomesticMOT, EuroMOT and ExtraMOT segments; "Equity Options" referred to IDEM segment. (2) ECM figures include IPOs, Convertibles and Follow-on deals. Source: Equita analysis on Borsa Italiana and Dealogic data. DCM figures excluding banks/insurances. Source: Bondradar. M&A figures from KPMG report. Page note: roundings in Client Driven & Market Making and Directional Trading could occur due to minor reclassifications

PROFIT & LOSS AND FOCUS ON COSTS

DISCIPLINED APPROACH ON COSTS AND STRONG PROFITABILITY CONFIRMED

SUMMARY OF CONSOLIDATED FIGURES

Profit & Loss € m	H1 2021	H1 2020	Var %	FY 2020
Net Revenues	46,1	29,1	58%	68,2
costs(1) Personnel	(21,8)	(13,3)	64%	(32,3)
Comps/Revenues ratio	(47%)	(46%)		(47%)
Operating costs	(9,1)	(8,6)	6%	(18,2)
Total Costs	(30,9)	(219)	41%	(50,6)
Cost/Income ratio	(67%)	(75%)		(74%)
Profit before taxes	15,2	7,2	110%	17,6
Income taxes	(3,7)	(2,1)	78%	(4,7)
Net Profit	11,7	5,1	128%	12,9
Net Profit (post-minorities)	11,4	5,1	123%	12,3
Margin %	25%	18%		18%
Dividend Payout %				75%

Focus on Costs

	H1	H1
€ m	2021	2020	Var. %
costs (1) Personnel	(21,8)	(13,3)	64%
(2) FTEs	162	147	12%
Comps / Revenues	47% (3)	46%	3%
12 FTEs from Equita K Finance
	H1	H1
€ m	2021	2020	Var. %
Operating Costs	(9,1)	(4,3)	6%
o/w Information Technologies	(2,8)	(2,8)	(1%)
o/w Trading Fees	(1,7)	(1,7)	(1%)
o/w Non-Recurring	-	-	n.a.
o/w Other (marketing, SGR, EKF)	(4,6)	(4,1)	13%

Year-on-year increase in Other expenses mainly driven by the enlarged perimeter (Equita K Finance), more charity initiatives and part of the advertising expenses occurred to announce the launch of the ELTIF fund

BALANCE SHEET AND TOTAL CAPITAL RATIO

LIGHT BALANCE SHEET AND HEALTHY CAPITAL STRUCTURE, WITH TOTAL CAPITAL RATIO WELL ABOVE REQUIREMENTS

Equita Group (Consolidated) € m		H1'21	Q1'21	FY'20	H1'20	Q1'20	FY'19	9M'19
Cash & cash equivalents	0,0	0,0	0,0	0,0	0,0	0,0	0,0
Assets at FV to P&L & Equity investments	72,1	74,9	43,9	84,2	80,9	75,3	81,5
Receivables		229,5	221,6	203,3	196,4	237,6	184,2	174,4
Tangibles assets		5,7	6,0	6,2	6,7	7,2	7,3	7,6
Intangible assets		27,4	27,5	27,5	15,1	15,1	15,1	15,0
Tax assets		3,0	3,0	3,1	2,2	4,2	5,0	2,6
Other assets		2,8	2,8	1,6	2,7	2,9	1,5	1,6
Total assets		340,6	335,8	285,8	307,3	347,9	288,3	282,7
Debt	205,1	185,0	157,0	205,7	227,2	172,9	173,7
Financial liabilities held for trading	12,1	28,3	14,2	8,3	13,4	12,3	17,5
Tax liabilities	3,2	4,0	2,2	1,9	2,7	2,3	0,9
Other liabilities	27,6	23,3	21,7	10,8	16,5	14,2	8,9
Employee termination indemnities		2,3	2,3	2,3	1,9	1,9	2,5	2,6
Provisions for risks and charges		1,9	2,7	2,7	1,8	3,9	3,9	3,4
Total liabilities Tangible Equity €61m		252,2	245,6	200,1	230,4	265,7	208,2	207,1
Share capital		11,4	11,4	11,4	11,4	11,4	11,4	11,4
Treasury shares	"New" Capital	(4,1)	(4,1)	(4,1)	(4,5)	(4,5)	(4,5)	(4,5)
Share premium reserve	Ratio >500%, well	18,7	18,7	18,2	18,2	18,2	18,2	18,2
Reserves	above minimum	50,5	59,7	47,2	46,7	55,3	45,6	44,9
requirements Valuation reserves		(0,0)	(0,0)	(0,0)	(0,0)	(0,0)	(0,0)	(0,0)
Profit /(Loss) for the financial year		11,7	4,4	12,9	5,1	1,9	9,5	5,6
Third parties' equity & Profit /(Loss)		0,1	0,1	0,1	0,1	-	-	-
Total shareholders' equity		88,3	90,2	85,7	76,9	82,2	80,1	75,6
Total shareholders' equity and liabilities		340,6	335,8	285,8	307,3	347,9	288,3	282,7

Index

RECENT DEVELOPMENTS & INITIATIVES

LEADING POSITION IN INVESTORS' SURVEYS CONFIRMED…

EQUITA CONFIRMED ITS COMPETITIVE ADVANTAGE POST MIFID II BY RANKING AT THE TOP OF INTERNATIONAL INVESTORS' SURVEYS AND #1 PLAYER AMONG INDEPENDENT BROKERS ALSO IN 2021

RESEARCH TEAM

Votes received in 2021 by the Equita Research Team (1) (3)

Italy Research Small & MidCap Stocks (1)

…AS WELL AS IN THE INVESTMENT BANKING LEAGUE TABLES

	#	(2019-2021YTD) IPO / Listing1	# deals
	1.		6
	2.	IMI – Intesa Sanpaolo	5
	3.	Mediobanca	5
M	4.	Goldman Sachs	4
C	5.	Intermonte	2
E	6.	BPER	2
	7.	Bank of America	2
	8.	Unicredit	1
	9.	Credit Suisse	1
	10.	UBS	1

	#	(2019-2021YTD) HY and NR Bonds2	# deals
	1.	Unicredit Group	20
	2.	Banca IMI	15
	3.	BNP Paribas	14
M	4.	Goldman Sachs	11
C D	5.	Credit Suisse	9
	6.		7
	7.	Deutsche Bank	7
	8.	JP Morgan	7
	9.	Bank of America	7
	10.	Barclays	6

€ bn value

	1.	Mediobanca	81
	2.	Goldman Sachs	76
	3.	Rothschild	57
A	4.	JP Morgan	55
&	5.		50
M	6.	KPMG	49

	5.		50
	6.	KPMG	49
	7.	Bank of America	48
	8.	Lazard	47
	9.	Credit Suisse	41
	10.	IMI – Intesa Sanpaolo	37

# M&A deals 2019-2021YTD³

ITALIAN RANKINGS KEY TRANSACTIONS (YTD 2021) (3)

NEW PRODUCTS TO STRENGTHEN OUR PRESENCE IN ALTERNATIVE ASSETS

Significant re-ups from investors in EPD I New top-tier international investor Commitments from leading Italian life insurance companies and major Italian pension funds KEY INFORMATION – EPD II KEY INFORMATION – EQUITA SMART CAPITAL ELTIF Investment strategy Exp. Gross return Investing in senior unitranche and subordinated bonds in sponsor-led transactions, with a maturity of 5 to 7 years and a bullet repayment structure ≈ 10% Alignment of interests Equita and the Managing Team have invested in EPD II. The investment is higher compared to the one made in the first fund AN OUTSTADING PRIVATE DEBT TEAM €178.5m YTD Commitments (September 2021) Target size €200m Hard cap €250m €57m already invested (5 investments) Investment strategy Target Gross return Qualified minority shareholdings and, selectively, in majority shareholdings, primarily through capital increase transactions alongside the target's management team and entrepreneurs ≈ 12-14% Alignment of interests Equita and the Managing Team will invest in the ELTIF Target size €140m Fund allocation Italian SMEs / 60-70% private equity, 20-35% public equity, 5-10% listed bonds Distributors Cordusio SIM (other distributors expected to come in Q4'21) Fund horizon 8 years #BeSmart

= Equita
-------------

Index

OUTLOOK 2021 AND CLOSING REMARKS

OUTLOOK 2021

POSITIVE EXPECTATIONS ON FY'21 AND NEW CAPITAL REQUIREMENTS LED THE BOARD OF DIRECTORS TO CONSIDER – ABSENT SIGNIFICANT MARKET CHANGES – IN 2022 A POTENTIAL DIVIDEND DISTRIBUTION SIGNIFICANTLY HIGHER THAN THE €0.20 PER SHARE DISTRIBUTED IN 2021

FY'21 Net Revenues and Net Profits expected to make significant progress towards the 2022 targets set by in Strategic Plan 2020-2022

COMPARISON BETWEEN REGULATORY FRAMEWORKS (ESTIMATES ON H1'21 FIGURES)

New regulatory framework on capital expected to free some capital for new investments and shareholders' remuneration

GUIDELINES ON DIVIDENDS

To be defined depending on potential M&A transactions

To give more stability to share price and provide a spread of cash flows to investors over the year

WHAT TO EXPECT IN THE COMING YEARS

AN EQUITA IMPROVED FRAMEWORK OFFERING INTERESTING STRATEGIC OPPORTUNITIES FOR IN THE COMING YEARS
AREA	OPPORTUNITY	ENABLING FACTORS AND KEY DRIVERS
Global Markets	Increase in brokered volumes of Mid-Small caps and further consolidation of leadership	High market shares (#1 independent broker) Fixed Income desk (upside potential with cross-selling and up-selling initiatives) Alternative PIRs and Government initiatives (increase liquidity on markets, especially for Mid-Small caps)
Investment Banking	Increase in number of ECM, DCM and M&A advisory deals expected	Government initiatives to support capital markets and SMEs (PNRR funds, easier access to capital markets, simpler regulation, tax reliefs,…) Increasing M&A activities in the market (consolidation of several sectors and industries to cope with the crisis)
Alternative Asset Management	New initiatives, leveraging on our unique expertise on alternative assets management	Launch of Alternative PIRs (focus on Mid and Small caps and SMEs, strong need of competences on illiquid investments like private equity and private debt)
Cost Structure & Profitability	Operating leverage from different business mix and potential savings from cost-optimisation initiatives	Business mix moving toward more profitable areas Broad acceptance of virtual meetings (lower expenses for roadshows/conferences compared to the past)
External Growth Opportunities	Business partnerships and bolt-on acquisitions	Strong reputation among professionals who appreciate Equita's entrepreneurial DNA Increasing appeal of the Equita brand, perceived as trusted partner to co-develop products and set-up partnerships

NEXT STEPS

MANY INITIATIVES TO SUPPORT FURTHER FUTURE GROWTH IN ALL AREAS
AREA	INITIATIVES
Global Markets & Research	Further coordination of Global Markets area as a whole, with clear strategy and allocation of resources Further diversification of product offering as well as client base, increasing resiliency Cross-selling initiatives supporting growth in market shares Discipline on costs / technology. Review of profitability by area and client Strengthening of our market position in the fixed income domain
Investment Banking	Close gap with larger international independent players Additional hires of senior originators and sector specialists Additional focus on advisory (M&A and debt advisory/restructuring) Further integration of Equita K Finance with the other Group's business areas Cross-selling with Asset Management
Alternative Asset Management	Final Closing of Equita Private Debt Fund II (€200m final target, with €178.5m funds already committed) First Closing of Equita Smart Capital ELTIF and new distributors to be engaged soon (€140m final target) Other club deals initiatives to help families and investors close to Equita to access excellent SMEs
M&A & Partnerships	Bolt-on M&A on selected opportunities in areas of potential growth Potential high-level partnerships contributing synergies to Equita's businesses
P&L Balance Sheet	Compensation / Revenues ratio < 50% Cost-disciplined approach keeping general costs stable and looking for potential savings

Index

APPENDIX

THE LEADING INDEPENDENT INVESTMENT BANK IN ITALY

STORY AND MILESTONES

CLEAR GROUP STRUCTURE AND STRONG MANAGEMENT COMMITMENT

Separated governance between Group's companies to avoid conflicts of interest and maximize business potential

Partnership "opened" to the market

First Shareholders' Agreement-Bis

• 30 shareholders with 48% of share capital (≈65%(2) of votes following the kick-in of increased voting rights)
• Voting and lock-up commitments expiring in July 2022

Other Shareholders' Agreement (3)

• C. 70 shareholders with 55% of share capital (≈73%(2) of votes following the kick-in of increased voting rights)
• Preemption rights on shares disposed by adherents to the agreement

Strong management commitment and entrepreneurial spirit

BUSINESS AREAS

We are the leading independent broker in Italy. We offer to institutional clients and banking groups brokerage services on equities, bonds, derivatives and ETFs, as well as market making and specialist services on listed financial instruments.

We support the investors' decisions with investment ideas and in-depth analysis on Italian and European financial markets.

We offer high-profile advisory in extraordinary financial transactions, M&A deals, private placements and issues of equity and debt instruments on capital markets.

We assist all types of clients, from large corporates and industrial groups to small and medium enterprises, from financial institutions to public entities.

We manage - via Equita Capital SGR liquid and illiquid assets exploiting our expertise and deep understanding of financial markets, especially mid and small caps.

The team focuses on asset management strategies that require specific superior expertise to be applied to alternative assets like private debt and private equity.

Our expert analysts support all other Group's business areas by studying equity and debt issuers and publishing value added research.

For years our Research Team has been recognised among the leading teams in Italy, voted by domestic and international institutional investors for its excellence and its focus on midsmall caps.

The largest independent trading floor in Italy

Complete offering of investment banking services

€1 billion of Assets under Management

High quality research, ranked at the top of international surveys

STRONG POSITIONING AND AWARD-WINNING TEAMS IN ALL AREAS

(1) Rankings published by Institutional Investor for Italy and based on commissions. (2) Source: ASSOSIM (H1'21); market shares' figures based on quarterly volumes for third parties; "Equities" referred to equities brokered on MTA segment, "Bonds" referred to bonds brokered on DomesticMOT, EuroMOT and ExtraMOT segments; "Equity Options" referred to IDEM segment. (3) ECM rankings made considering # of IPOs and listings in the Italian market (Global Coordinator, Sponsor, Advisor to Issuer or Selling shareholders, NOMAD), excluding deals <€10m and market cap <€10m (in case of listing); source: Equita analysis on Borsa Italiana and Dealogic data. DCM rankings considering High Yield and Not Rated bond issues; source: Bondradar. M&A rankings made on Mergermarketsfigures.

STRONG TRACK-RECORD IN THE EXECUTION OF NEW INITIATIVES

LEGACY BUSINESS VS NEW INITIATIVES (NET REVENUES FY'09 VS FY'20)

CONTRIBUTION OF FIXED INCOME ON FY'20 RESULTS

RESILIENT AND PROFITABLE PERFORMANCE THANKS TO DIVERSIFICATION

NET REVENUES (€M)

NET PROFITS (€M)

ROAD TO 2022: TARGETS LIKELY TO BE REACHED ONE YEAR IN ADVANCE

Mitigate impacts on environment

STAR CONFERENCE 2021 (H1'21 RESULTS) 25

Via Turati, No. 9 | Milan | 20121 Tel. +39 02 6204.1 | Fax +39 02 29001208/1202 ir@equita.eu | info@equita.eu | www.equita.eu

GLOBAL MARKETS | INVESTMENT BANKING | ALTERNATIVE ASSET MANAGEMENT | RICERCA