Equita Group — Investor Presentation 2021

Mar 23, 2021

FULL YEAR 2020 RESULTS

STAR CONFERENCE PRESENTATION

24 March 2021

THE EXPERTS OF FINANCIAL MARKETS

• EXECUTIVE SUMMARY Page 3
• FY'20 RESULTS (KEY FINANCIALS) Page 5
• RECENT DEVELOPMENTS, INITIATIVES & POSITIONING Page 10
• CLOSING REMARKS Page 19

ANNEX

• INTRODUCTION (EQUITA AT A GLANCE) Page 24
• GLOBAL MARKETS Page 28
• RESEARCH TEAM Page 30
• INVESTMENT BANKING Page 31
• ALTERNATIVE ASSET MANAGEMENT Page 33
  • ESG & SUSTAINABILITY Page 37
  • TRACK RECORD & M&A Page 39
  • FINANCE Page 41

EXECUTIVE SUMMARY

FY'20 FINANCIAL RESULTS

Growth and financial soundness confirmed

Double digit growth in client-related revenues, consolidated net revenues and net profits. Solid capital structure

Increase in profitability

Operating leverage, consolidation of accretive initiatives and disciplined cost structure

RECENT DEVELOPMENTS & INITIATIVES

Covid-19

• Business continuity guaranteed
• Initiatives to support employees and local communities

Rankings

• Standing as leading independent broker in Italy confirmed
• Improving position in M&A (#6), ECM (#1) and DCM (#5) league tables
• Winner of the Private Debt Awards 2020

Strategic initiatives

• New advisory board
• New long term financing agreement
• Acquisition of Equita K Finance

Business initiatives

Two fundraising phases closed to date on Equita Private Debt Fund II (€131.5m commitments, €200m final target)

DIVIDEND AND BUSINESS OUTLOOK

Dividend confirmed on the high-end of the guidance

• Dividend of €0.20 per share (+5% vs FY'19) to be paid in two tranches to reduce stock volatility ex-dividend
• New guidelines for future dividends: pay-out ratio ≥ 50% and dividend split in two tranches

Strong pipeline to support growth in 2021

• First months of 2021 showed high levels of activities in terms of financial markets' performance and extraordinary transactions
• Additional benefits from consolidation of Equita K Finance and new AAM products (Equita Private Debt Fund II, ELTIF…)

Index

FY'20 RESULTS (KEY FINANCIALS)

SNAPSHOT ON FULL YEAR 2020 CONSOLIDATED RESULTS

KEY CONSOLIDATED HIGHLIGHTS

SNAPSHOT ON DIVISIONAL PERFORMANCE

	Equities	Bonds	Equity Options
FY'17	5.0%	1.8%	4.9%
FY'18	6.6%	4.2%	5.3%
FY'19	9.2%	6.2%	7.6%
FY'20	7.8%	6.8%	5.0%

INVESTMENT BANKING NET REVENUES (€M) MARKET STATISTICS (FY'20 VS FY'19)(2)

ECM

DCM

M&A

€38bn (-27%) 830 deals (-24%)

€8.7bn (+13%) 57 deals (-8%)

€7.3bn (+61%) 15 deals (+36%)

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

(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 and considering only High-yield and not rated issues. Source: Bondradar. M&A figures from KPMG report. Page note: 2015 figures referred to Equita SIM; 2016 and onward figuresreferred to Equita Group; roundingsin Client Driven & Market Making and Directional Trading could occur due to minor reclassifications

Strong growth in Q4'20

PROFIT & LOSS AND FOCUS ON COSTS

DISCIPLINED APPROACH ON COSTS AND STRONG PROFITABILITY CONFIRMED

SUMMARY OF CONSOLIDATED FIGURES

Profit & Loss	FY	FY	Var	FY
€ m	2020	2019	%	2018
Net Revenues	68,2	58,3	17%	59,8
costs(1) Personnel	(32,3)	(27,1)	19%	27,4
Comps/Revenues ratio	(47%)	(46%)		(46%)
Operating costs	(18,2)	(17,5)	4%	(16,9)
Total Costs	(50,6)	(44,7)	13%	44,2
Cost/Income ratio	(74%)	(77%)		(74%)
Profit before taxes	17,6	13,7	29%	15,5
Income taxes	(4,7)	(4,2)		(4,5)
Net Profit	12,9	9,5	36%	11,0
Net Profit (post-minorities)	12,3	9,5	29%	11,0
Margin %	18%	16%
Dividend Payout %	75%	91%		90%

Focus on Costs

Equita Group (Consolidated)	FY	FY
€ m	2020	2019	Var. %
costs (1) Personnel	(32,3)	(27,1)	19%
o/w Fixed component	(18,3)	(17,6)	4%
o/w Variable component	(14,0)	(9,5)	48%
(2) FTEs	164	152	8%
Comps / Revenues	47%	46%	2%
Fix Comp / Total Comp	57%	65%	(13%)
12 FTEs from Equita K Finance

Equita Group (Consolidated)	FY	FY
€ m	2020	2019	Var. %
Operating Costs	(18,2)	(17,5)	4%
o/w Information Technologies	(5,6)	(6,1)	(7%)
o/w Trading Fees	(3,2)	(3,2)	(1%)
o/w Non-Recurring	-	-	n.a.
o/w Other (marketing, SGR, EKF)	(9,4)	(8,2)	14%

Year-on-year increase in Other expenses was driven by the enlarged perimeter (Equita K Finance, SGR governance and outsourcing contracts) as well as some non-recurring initiatives completed in Q2'20 (M&A, MLT financing, Charity Day, etc).

DIVIDEND PROPOSAL AND GUIDELINE FOR THE FUTURE

Index

RECENT DEVELOPMENTS, INITIATIVES & POSITIONING

ACQUISITION OF EQUITA K FINANCE

EQUITA ACQUIRED A 70% STAKE IN K FINANCE (NOW EQUITA K FINANCE), AN ITALIAN INDEPENDENT M&A ADVISORY BOUTIQUE WITH MORE THAN 20 YEARS EXPERIENCE AND SIMILAR VALUES AND FOUNDING PRINCIPLES TO EQUITA'S

ONGOING INTEGRATION OF EQUITA K FINANCE

SMOOTH INTEGRATION SINCE DAY 1. THE NEWLY ACQUIRED COMPANY HAD AN ACCRETIVE IMPACT ON FY'20 FINANCIALS AND STRENGTHENED SIGNIFICANTLY THE EQUITA MARKET POSITIONING IN M&A ADVISORY

	UPDATE KEY ON THE INTEGRATION PROCESS AND ACHIEVEMENTS
	Financial performance of Equita K Finance in line with expectations, with 15(1) deals closed in 2020
Financials	€4.7m Net Revenues consolidated in 2020 (since July) with a strong operating leverage on Group's margin
	Earn-out paid to the founding partners of Equita K Finance (€0.5m) following the achievement of 2020 Net Profit's targets
Governance and Group Structure	Founding partners appointed Co-CEOs of Equita K Finance and included in Equita Group's shareholders pact (First Shareholders Agreement-Bis) Merger of Equita K Finance's subsidiaries to further simplify the Group's structure completed
Strategy and	Intense collaboration between Equita K Finance's professionals and the Investment Banking and Alternative Asset Management divisions of the Group to generate cross-selling opportunities
Market Position	Following the integration of Equita K Finance, Equita became the largest independent investment bank in Italy with more than 45 professionals
	Improved position following the partnership with Clairfield International that boosted significantly Equita's ability to execute cross-border M&A transactions

EQUITA PRIVATE DEBT FUND II

THE TEAM CLOSED TWO FUNDRAISING PHASES OF «EQUITA PRIVATE DEBT FUND II» (EPD II) AND REACHED €131.5M

KEY INFORMATION – EPD II

FUND	SIZE	AND	INVESTORS

Target size	€200m (hard cap €250m), of which €131.5m already committed
Investment strategy	Investing in senior unitranche and subordinated bonds in sponsor-led transactions, with a maturity of 5 to 7 years and a bullet repayment structure
Exp. Gross return (1)	≈ 9.5%
Alignment of interests	Both Equita and the Managing Team have invested in EPD II. The investment is higher compared to the one made in the first fund

THE PRIVATE DEBT TEAM OF EQUITA

insurance company and a major national pension fund

AN ADVISORY BOARD TO ASSIST THE GROUP IN ITS STRATEGIC DECISIONS

EQUITA APPOINTED LEADING INDEPENDENT EXPERTS TO ADVISE THE BOARD OF DIRECTORS AND MANAGEMENT

THE LEADING INDEPENDENT EXPERTS OF THE ADVISORY BOARD OF EQUITA

PAOLO BASILICO

• Italian entrepreneur, founder of the Kairos Group (private banking and asset management industry)
• CEO at Samhita Investments
• Long-standing professional experience in the brokerage industry as General Manager and CEO at Giubergia Warburg SIM

STEFANO MAINETTI

• Electronic engineer, dedicating many years to digital start-ups and fostering innovation and entrepreneurship.
• Executive advisor at PoliHub (start-up district and accelerator of the Milano Politecnico)

ROBERTA NERI

• Founding partner of Manesa (then merged into Byom) and senior advisor at Asterion Capital Partners
• Served also as CEO at ENAV, managing the listing of the company
• Served as CFO first and board member then at ACEA, as well as Independent director at Sorgenia, Autostrade Meridionali per l'Italia and Cementir Holding

THIERRY PORTÉ

• Managing director at J.C. Flowers & Co
• Covers additional offices in insurance, banking and financial companies, and has leading academic and institutional roles
• Served as President of the Japan-US Friendship Commission and of the US-Japan Conference on Cultural and Educational Interchange upon appointment by the President of the United States.
• Chairman at Equita SIM (2009-2017) and Vice-Chairman at Equita Group (2017-2020)

PAUL SCHAPIRA

• Strategic and financial advisor to corporations, families and private equity funds
• Independent director at Saipem and Tamburi Investment Partners
• Served as managing director at Goldman Sachs and Morgan Stanley, and had a senior role in the financial sponsors' activities for Europe when at Morgan Stanley

MASSIMO FERRARI

• General Manager Corporate and Finance at Webuild
• Board member at AC Milan and Cairo Communication
• Long-standing professional experience in the asset management industry as portfolio manager, head of investments and CEO in various companies
• Served as Head of Issuers Division at CONSOB
• Former Board Member at Equita Group (2017-2020)

NEW MEDIUM-TERM FINANCING TO SUPPORT OUR GROWTH STRATEGY

UP TO EURO 30 MILLION TO FINANCE GROWTH PLANS THROUGH THE EXECUTION OF POTENTIAL M&A TRANSACTIONS AND INVESTMENTS IN NEW ALTERNATIVE ASSET MANAGEMENT PRODUCTS

FINANCING FACILITIES – KEY TERMS

	TLA (TERM LOAN AMORTISING)	RCF (REVOLVING CREDIT FACILITY)
Amount	Up to €25m	Up to €5m
Maturity	June 30, 2025	June 30, 2023
Interest Rate	Euribor 12m + Spread	Euribor 1/3/6m + Spread
Drawdown period	18 months starting from signing	n.a.
Reimbursement	8 half-year instalments, starting December 2021	n.a.

Additional resources to fund non-organic external growth and investments in AAM products

Further optimization of Group's capital structure, with a mix of debt and equity

RATIONALE

Better match of maturities between assets and liabilities

STRONG POSITIONING AND AWARD-WINNING TEAMS IN ALL AREAS

(1) Rankings published by Institutional Investor for Italy and based on commissions. (2) 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. (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 on Mergermarketsfigures(deal count).

LEADING POSITION IN INVESTMENT BANKING IN ITALY

ITALIAN RANKINGS KEY RELEVANT TRANSACTIONS (2018 – YTD MAR'21) (3)

		#	IPO / Listing (1)	# deals
0) 02 M 2 – C		1.		4
		2.	IMI – Intesa Sanpaolo	4
	3.	Mediobanca	4
	4.	UniCredit Group	3
	5.	Credit Suisse	3
E	8	6.	Goldman Sachs	2
	01	7.	Banca Akros	2
(2		8.	Banca Finnat	2
		9.	UBI Banca	2
		10.	Intermonte	1

0) 02 M –2 C	#	HY and NR Bonds (2)	# deals
	1.	Unicredit Group	17
	2.	BNP Paribas	14
	3.	Goldman Sachs	11
	4.	HSBC	11
	5.		8
8 D	6.	JP Morgan	8
01	7.	Mediobanca	7
(2	8.	Credit Suisse	6
	9.	Banca IMI	5
	10.	UBI Banca	5

A 0) & 02 M (2	#	M&A Advisor (3)	# deals
	1.	KPMG	70
	2.	Deloitte	63
	3.	Pwc	40
	4.	EY	38
	5.	Mediobanca	28
	6.	(3)	23
	7.	Vitale & Co	22
	8.	Rothschild & Co	19
	9.	Lazard	17
	10.	Unicredit Group	17

(1) 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. (2) Rankings considering High Yield and Not Rated bond issues. Source: Bondradar. (3) Rankings made on Mergermarkets figures.

INVESTING IN A SOCIALLY RESPONSIBLE BUSINESS

INVESTING IN EQUITA MEANS SUPPORTING INITIATIVES THAT BENEFIT THE SOCIETY

Index

CLOSING REMARKS

A DIFFICULT ENVIRONMENT PRESENTING STRATEGIC OPPORTUNITIES

AN EQUITA OVERALL DIFFICULT 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 from 2021	Government initiatives to support capital markets and SMEs (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	Potential savings from additional cost-optimisation initiative, following recent developments	Introduction of remote working (lower general expenses like electricity and rental spaces, increased productivity,…) Broad acceptance of virtual meetings (lower marketing 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 Cross-selling with Asset Management
Alternative Asset Management	Final Closing of Equita Private Debt Fund II (€200m final target, with €131.5m funds already committed) Other private capital initiatives, with focus on private equity exploiting investment structures like ELTIFs or on club deals 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

ROAD TO 2022: TOP PRIORITIES AND TARGETS (PLAN APPROVED IN NOVEMBER 2019)

STAR CONFERENCE (FY'20 RESULTS) 21

RESILIENT AND PROFITABLE PERFORMANCE THANKS TO DIVERSIFICATION

NET REVENUES (€M)

NET PROFITS (€M)

STAR CONFERENCE (FY'20 RESULTS) 22

THE LEADING INDEPENDENT INVESTMENT BANK IN ITALY

differentiating factor Clear and diversified

Independence as

business model

Leadership on small and mid-cap companies

Socially responsible

STORY AND MILESTONES

STAR CONFERENCE (FY'20 RESULTS) 25

CLEAR GROUP STRUCTURE AND STRONG MANAGEMENT COMMITMENT

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 54% 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

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

Partnership "opened" to the market

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

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

THE LEADING INDEPENDENT BROKERAGE FIRM IN ITALY

COMPLETE AND DIVERSIFIED PRODUCT OFFERING (EQUITIES, BONDS, DERIVATIVES, ETFS) BUILT ON CLIENTS' NEEDS. THE HIGH MARKET SHARES ACHIEVED OVER TIME CONFIRMED EQUITA'S COMPETITIVE ADVANTAGE POST MIFID II. CONSTANTLY RANKED AT THE TOP OF INVESTORS' SURVEYS AND #1 AMONG INDEPENDENT BROKERS

(1) Source: ASSOSIM, market share on third parties brokered volumes; column "Equities" refers to the MTA segment, "Bonds" refers to DomesticMOT, EuroMOT and ExtraMOT, "Equity Options" refers to IDEM. (2) Institutional Investor rankings on Italy and based on commissions paid. (3) Extel surveys

GLOBAL MARKETS

NET REVENUES (€M)

Performance drivers

• Sales & Trading and Client-Driven & Market Making activities benefitted from higher market volumes brokered on behalf of clients in H1'20, then back to weak levels in H2'20 (market volumes on equities: +32% in H1'20 vs H1'19 compared to +1% in H2'20 vs H2'19; market volumes on bonds: +52% in H1'20 vs H1'19 compared to -15% in H2'20 vs H2'19) (1)
• Directional Trading was negatively impacted in 2020 by the sharp markets' downturn that hit results with a significant loss in Q1 (-€1.3m), then gradually offset by small gains in Q2 (€0.3m) and Q3 (€0.1m), followed by a "normalised" profitable Q4 (€1.3m)
• Equita confirmed its leadership in Institutional Investor's rankings for its sales and corporate access activities, as well as for the quality of its research and deep understanding of mid-small caps

Market data - ASSOSIM (1)

(third parties brokered volumes)

	Equities		Bonds		Equity Options
	% market share	Overall rank (2) (indep. rank)	% market share	Overall rank (2) (indep. rank)	% market share	Overall rank (2) (indep. rank)
FY'17	5.0%	#7 (#1)	1.8%	#14 (#2)	4.9%	#3 (#2)
FY'18	6.6%	#5 (#1)	4.2%	#9 (#1)	5.3%	#4 (#3)
FY'19	9.2%	#5 (#1)	6.2%	#6 (#1)	7.6%	#7 (#1)
FY'20	7.8%	#5 (#1)	6.8%	#6 (#1)	5.0%	#3 (#3)

(1) Source: ASSOSIM; market volumes and market shares' figures based on brokerage activities on behalf of third parties; "Equities" referred to MTA segment, "Bonds" referred to DomesticMOT, EuroMOT and ExtraMOT segments; "Equity Options" referred to IDEM segment. (2) Overall rank vs Independent brokers' rank (excluding intermediaries controlled by commercial banks or dealing with flows deriving from proprietary retail clients(captive). 2015 figuresreferred to Equita SIM; 2016 and onward figuresreferred to Equita Group; roundings in Client Driven & Market Making and Directional Trading could occur due to minor reclassifications

BEST-IN-CLASS QUALITY RESEARCH FOR INVESTORS

EQUITA CONFIRMED ITS EXTENSIVE COVERAGE OF LISTED SECURITIES, BOTH EQUITIES AND BONDS. CONSISTENTLY RANKED AT THE TOP OF INTERNATIONAL RANKINGS THANKS TO THE BREADTH AND QUALITY OF ITS RESEARCH

(1) Small cap (market cap < €0.5bn), Mid Cap (market cap > €0.5bn and < €2.5bn), Large Cap (market cap > €2.5). (2) Institutional Investor rankings on Italy and based on commissions paid. (3) Distribution of votes received by the Equita Research Team on the «Overall Italy Research 2020» survey.

LEADER AMONG INDEPENDENTS IN INVESTMENT BANKING IN ITALY

THE LEADING INDEPENDENT PLAYER ON CAPITAL MARKETS IN ITALY AND CONSTANTLY RANKED AMONG TOP M&A ADVISORS BY NUMBER OF DEALS. SIGNIFICANT BENEFITS AND SYNERGIES FROM COVERING THE WHOLE SPECTRUM OF IB SERVICES

Equity Capital Markets	2007	3
M&A Advisory & Corporate Broking	2008	5
	2009	7
Financial Institutions	2010	10
	2011	11
Debt Advisory	2012	13
Debt Capital Markets	2013	16
	2014	17
	2015	20
	2016	22
Financial Sponsors	2017	23
Small Caps	2018	29
Utilities / Infrastructures	2019	33
Equita K Finance	2020	33	18

#	IPO / Listing (1)	# deals
		4
		4
		4
		3
		3
		2
		2
		2
		2
10.	Intermonte	1
	1. 2. 3. 4. 5. 6. 7. 8. 9.	IMI – Intesa Sanpaolo Mediobanca UniCredit Group Credit Suisse Goldman Sachs Banca Akros Banca Finnat UBI Banca

	#	HY and NR Bonds (2)	# deals
0)	1.	Unicredit Group	17
	2.	BNP Paribas	14
	3.	Goldman Sachs	11
02 M	4.	HSBC	11
–2 C 8 D 01 (2	5.		8
	6.	JP Morgan	8
	7.	Mediobanca	7
	8.	Credit Suisse	6
	9.	Banca IMI	5
	10.	UBI Banca	5

	#	M&A Advisor (3)	# deals
	1.	KPMG	70
	2.	Deloitte	63
	3.	Pwc	40
A 0)	4.	EY	38
& 02 M (2	5.	Mediobanca	28
	6.	(3)	23
	7.	Vitale & Co	22
	8.	Rothschild & Co	19
	9.	Lazard	17
	10.	Unicredit Group	17

New product team New sector team M&A

(1) ECM rankings includes IPO and listings on the Italian market. The ranking includes the following roles: Global Coordinator, Sponsor, Advisor of the issuer and/or selling shareholders, NOMAD. Excludes deals <€10m and market cap <€10m. Source: Equita elaboration on Borsa Italiana and Dealogic figures; (2) DCM ranking includes only high yield and not rated bonds. Source: Bondradar; (3) Source: Mergermarket; Equita deal count pro-forma to include Clairfield International partnership

INVESTMENT BANKING

Performance drivers

• ECM transactions in Italy declined from 62 in 2019 to 57 in 2020 (o/w 51% executed in Q4'20) while DCM activities experienced increasing volumes from 44 in 2019 to 48 in 2020 (o/w 45% executed in Q4'20). M&A declined significantly from 1.085 deals in 2019 to 830 in 2020 (€52bn in 2019 vs €38bn in 2020)
• Despite uncertainty heavily affected capital markets in 2020, in the latest part of the year the overall situation has started to improve with Q4'20 highlighting interesting level of activities in ECM and DCM
• The investment banking team executed a relevant number of transactions in all areas and confirmed its strong positioning in ECM, DCM and M&A (ranking #1, #5 and #6 in Italian league tables respectively)
• Corporate broking continued to deliver good results in terms of revenues' contribution and cross-selling
• FY'20 results benefitted from first-time consolidation of Equita K Finance and some high-profile mandates

(1) ECM rankings includes IPO and listings on the Italian market. The ranking includes the following roles: Global Coordinator, Sponsor, Advisor of the issuer and/or selling shareholders, NOMAD. Excludes deals <€10m and market cap <€10m. Source: Equita elaboration on Borsa Italiana and Dealogic figures; (2) DCM ranking includes only high yield and not rated bonds. Source: Bondradar; (3) Source: Mergermarket; Equita deal count pro-forma to include Clairfield International partnership. 2015 figuresreferred to Equita SIM; 2016 and onward figuresreferred to Equita Group

A ''DIFFERENT'' ASSET MANAGER…

EQUITA CAPITAL SGR, THE MANAGEMENT COMPANY OF EQUITA, LEVERAGES ON THE GROUP'S DIFFERENT AREAS OF EXPERTISE AND COMBINES SEVERAL DISTINCTIVE FEATURES THAT MAKE IT UNIQUE IN THE ITALIAN COMPETITIVE LANDSCAPE

• EPD II closed two fundraising phases and reached €131.5m. Fund size targeted at €200m
• ELTIF structure (tax-advantaged) to be implemented in new products

• Launch of new products in partnership

• fees generation

• Material potential upside from performance fees generated from current and future products

€1.8m Performance Fees in FY'20 (€3.7m in FY'19)

and strategies

Assessment of new opportunities to capitalize on team competences and expand product offering (private equity, real estate, venture capital, etc) and investment strategies

…WITH A CLEAR AND DIVERSIFIED GROWTH STRATEGY

A CLEAR STRATEGY, FOCUSSED ON DIFFERENT PRODUCTS AND SERVICES OFFERED TO BOTH FINANCIAL INSTITUTIONS AND PROFESSIONAL INVESTORS. NOT INTERESTED IN TRADITIONAL ASSET MANAGEMENT AND WEALTH MANAGEMENT

ALTERNATIVE ASSET MANAGEMENT: SOUND PERFORMANCE

POSITIVE TRACK RECORD IN ALMOST ALL PRODUCTS THANKS TO STRONG EXPERTISE AND TOP-QUALITY IN-HOUSE RESEARCH. RESILIENT PERFORMANCE ALSO DURING THE MARKET TURMOILS OF 2020

ALTERNATIVE ASSET MANAGEMENT

Performance drivers

• Portfolio Management recorded lower AM fees due to the declining average value of AuMs (1) but benefited from €1.8m performance fees (€3.7m in 2019), confirming the ability of Equita to outperform the benchmark also in tough markets
• Private Debt continued the fundraising of EPD II its second fund, PIR compliant with a final target of €200m. As of today the team has reached €131.5m of total commitments (2) and has already completed 4 investments (€42m, 32% of EPD II current commitments)
• Private Equity is working jointly with a tier 1 partner on the launch of its private equity product "Equita Smart Capital – ELTIF". Target was set at €140m
• In 2020 Equita closed its first club deal and given the success of the initiative the team is now actively working to offer access to its interesting deal flow to families and institutional investors

COVID-19 RESPONSE: KEY MESSAGES FROM THE OUTBREAK OF PANDEMIC

OPERATIONS KEEP GOING SMOOTHLY THANKS TO INFORMATION TECHNOLOGY INVESTMENTS MADE DURING THE LAST FEW YEARS WHICH GUARANTEE CONTINUITY TO THE BUSINESS, AS WELL AS HEALTH AND SAFETY OF EQUITA PROFESSIONALS

Information Technology

• New faster and safer network infrastructure
• Up to 200 simultaneous remote connections
• Migration to cloud-based applicative

Business & Operations

• Business continuity granted in all areas
• Relocation of some activities
• Back to a "new" normal with mix of professionals working on-site and remotely
• Roadshows, conferences and meetings hosted virtually and face-to-face

Attention to

clients

Human Resources

• All professionals tested for Covid-19 before returning to office after holidays
• Frequent updates to keep employees updated on the pandemic

Compliance

• Internal policies to limit contacts and rule the presence on-site
• Internal task-force to investigate any potential issue and act promptly

Attention to

employees

BUSINESS PROFESSIONALS SOCIAL INITIATIVES

Equita Trading for the Recovery

• Charity initiative where trading fees generated by Equita were donated to help families and children and support high-quality education
• Employees, board members and statutory auditors also contributed with their donations
• More than €230k to selected nonprofit organisations

THE INFLUENTIAL ROLE OF EQUITA ON FINANCIAL MARKETS

EQUITA IS AN OPINION MAKER ON CAPITAL MARKETS AND HAS POSITIONED ITSELF AS THE LEADING EXPERT OF FINANCIAL MARKETS IN ITALY

EQUITA ROLES AND INITIATIVES THAT PROMOTE THE DEVELOPMENT OF FINANCIAL MARKETS

Pro-market regulatory contributions

Equita has actively contributed to several initiatives aimed at improving financial markets and ease access and liquidity of SMEs to capital markets (PIR funds, listing tax breaks,…)

Standing roles of some Equita representatives

Some representatives of Equita are currently covering important offices to promote the development of financial markets (Assosim, Borsa Italiana, Consob) 1)

Long-Standing Partnership with Bocconi University

Long-standing relationship with Bocconi to encourage the debate on Italian capital markets. Six position papers published and dedicated research lab

Opinion maker on relevant financial topics

Several contributions on national and international media to raise awareness on key financial topics (MiFID II, promotion of capital markets, …)

THE EXPERTS OF FINANCIAL MARKETS

Strong brand, feeding new business opportunities

High reputation, reinforcing the Equita's appeal as strategic partner

STRONG TRACK-RECORD IN EXECUTING M&A AND NEW INITIATIVES

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

CONTRIBUTION OF FIXED INCOME ON FY'20 RESULTS

DEAL STRUCTURE AND KEY IMPACTS OF EQUITA K FINANCE ACQUISITION

ACCRETIVE TRANSACTION IN TERMS OF EPS AND ROTE, WITH LIMITED IMPACT ON SOLVENCY RATIOS. IMPACTS EXCLUDE POTENTIAL COMMERCIAL SYNERGIES

	DEAL STRUCTURE KEY TERMS AND
	Acquisition of majority stake in the target (2020)	Acquisition of remaining minorities (2024)
Stake	(1) 70% majority stake in K Holding (owning 100% of K Finance)	30% minority stake via Put & Call Options from 2024
Price and currency	€7.0m paid at Closing: €6.5m upfront, with a mix of cash and Equita treasury shares €0.5m earn-out, paid in cash and based on 2020- 2021 targets for Net Profit	Price for the 30% minority stake based on a multiple of the future Average Net Profit and paid with a mix of cash and Equita treasury shares
Timing	July 2020	Starting from 4 years after Closing
KEY IMPACTS EQUITA FOR
	(2) (2) ≈ +9% EPS ≈ 19% ROTE accretion in 2021 Pro forma 2021	Excluding ≈ 20% TCR Potential Pro Forma 2021 Synergies

STAR CONFERENCE (FY'20 RESULTS) 40

BALANCE SHEET AND TOTAL CAPITAL RATIO

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

Equita Group (Consolidated) € m		FY'20	H1'20	Q1'20	FY'19	9M'19
Cash & cash equivalents	0,0	0,0	0,0	0,0	0,0
Assets at FV to P&L & Equity investments		43,9	84,2	80,9	75,3	81,5
Receivables		203,3	196,4	237,6	184,2	174,4
Tangibles assets		6,2	6,7	7,2	7,3	7,6
Intangible assets		27,5	15,1	15,1	15,1	15,0
Tax assets		3,1	2,2	4,2	5,0	2,6
Other assets	1,6	2,7	2,9	1,5	1,6
Total assets		285,8	307,3	347,9	288,3	282,7
Debt	157,0	205,7	227,2	172,9	173,7
Financial liabilities held for trading	14,2	8,3	13,4	12,3	17,5
Tax liabilities		2,2	1,9	2,7	2,3	0,9
Other liabilities		21,7	10,8	16,5	14,2	8,9
Employee termination indemnities		2,3	1,9	1,9	2,5	2,6
Provisions for risks and charges		2,7	1,8	3,9	3,9	3,4
Total liabilities		196,8	230,4	265,7	208,2	207,1
Share capital	Tangible Equity	11,4	11,4	11,4	11,4	11,4
Treasury shares	€58m	(4,1)	(4,5)	(4,5)	(4,5)	(4,5)
Share premium reserve		18,2	18,2	18,2	18,2	18,2
Reserves		47,2	46,7	55,3	45,6	44,9
Valuation reserves	TCR 20% in 2020 (vs 26% in 2019) CET 1 €43m	(0,0)	(0,0)	(0,0)	(0,0)	(0,0)
Profit /(Loss) for the financial year		12,9	5,1	1,9	9,5	5,6
Third parties' equity & Profit /(Loss)		0,1	0,1	-	-	-
Total shareholders' equity		85,7	76,9	82,2	80,1	75,6
Total shareholders' equity and liabilities		285,8	307,3	347,9	288,3	282,7

EQUITA GROUP

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

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