Equita Group

Investor Presentation • Nov 13, 2023

Investor Presentation (9M'23 Financial Results)

November, 2023

Agenda

1. EQUITA at a Glance

• 2. Our Unique Business Model
• 3. Financial Highlights (9M'23 Results)
• 4. Outlook and What's Next
• 5. Appendix

EQUITA at a Glance

Who We Are: The Leading Independent Italian Investment Bank

One of the most respected go-to partner in Italy for investors, institutions, corporates and entrepreneurs, listed on the Italian Stock Exchange and managed by a partnership of committed professionals

Shareholders and Group Structure (2)

4

Our Story: Half-a-Century of Independent Thinking

EQUITA was founded in 1973 as one of the first independent Italian merchant banks. Over the years, it has been part of commercial banks and financial sponsor, allowing the Group to grow and develop solid institutional relationships

5

What We Do: Our Diversified Offering to Address all Clients' Needs

EQUITA acts as broker, financial advisor and alternative asset management platform. We offer financial advisory in strategic corporate finance transactions, capital raising solutions, access to global financial markets, execution of trading ideas, insights on listed companies, industry expertise, management of illiquid proprietary assets

Our Unique Business Model

Our Unique Business Model and What We Bring to the Table

Building blocks of the "EQUITA" model

Investment Banking: The Largest Contributor to Growth, with Plenty of Opportunities

Offering & Expertise

Key Facts

Why us?

• Leading ECM franchise in Italy, Top 5 in M&A and Top 10 in DCM (#1 among non-lenders)
• The only one-stop-shop in Italy, combining independence, access to markets and diversified product offering
• Increasing standing and brand awareness, with several high-profile mandates and recent strategic senior hirings (4 MDs)
• Major source of growth during the last ten years and plenty of opportunities to grow more by adding new verticals and expanding the reach of the team in Italy
• Low capital absorption and strong operating leverage

Recent Credentials

9

Global Markets: Very Profitable Historical Business and High Barriers to entry

Offering & Expertise

Key Facts

Why us?

• The largest independent trading floor in Italy and the leading broker in sales, trading & execution (Institutional Investor Rankings)
• Diversified offering in terms of instruments (equity fixed income, derivatives, certificates…), markets (Italy, Europe, US, Japan…) and clients (institutional and retail flows)
• High market shares in equity brokerage and increasing ones in fixed income and derivatives
• High barriers to entry (long-standing relationships with investors, knowledge of the Italian market, IT infrastructure…)

Research Team: A Team of Experts, at the Top of International Rankings

Offering & Expertise

Key Facts

Why us?

• Independent outstanding research, covering equity and fixed income issuers
• Leading position in Italy, with a team of analysts constantly ranked at the top of international surveys (Institutional Investors)
• Wide coverage of Italian listed companies (96%+ total market cap in Italy) and increasing coverage of European and international issuers
• Multi-sector expertise, proven track-record in understanding key trends in advance, and deep knowledge of Mid & Small Caps
• Professionals who provide valuable insights to the other areas of business of the Group (Investment Banking, Global Markets, Alternative Asset Management)

11

Alternative Asset Management: the Rising Star, where Sky is the Limit

Offering & Expertise

Key Facts

Why us?

• One of the few multi-asset manager in Italy, with a diversified offering, combining liquid and illiquid assets, debt and equity, institutional and banking clients
• Among pioneers and leaders in private debt in Italy, with a growing footprint abroad (Germany)
• Solid track-record in the launch of new products, in performance generation and in growing team size
• Synergies deriving from the collaboration with other areas of the Group (research, trading floor, investment banking)
• Model based on recurring revenues' stream from alternative assets, and potential upside from carried interest
• Low capital absorption, strong operating leverage, scalable business

A Reliable Partner with a Strong Brand and an Improving Positioning, Committed to Sustainability

Recent initiatives dedicated to sustainability The EQUITA brand

• Sustainability Report 2022 Launch of a new sustainable finance team to address clients' needs and advise investors, corporates, entrepreneurs and institutions in the delicate transition to sustainability
• Launch of a new asset class dedicated to green infrastructures (EGIF)
• Integration of research reports with ESG analysis
• Assessment of Group's carbon footprint and achievement of carbon-neutrality in 2022, before 2024 target
• Establishment of Fondazione EQUITA, with focus on young students, financial education, art and culture, local communities and environment.

newspapers and media in the last 12 months

Why us?

• ESG and sustainability at the core of our strategy, to support business development
• Strong perception of EQUITA as brand, with high-reputation among institutions, entrepreneurs and decision makers
• Business model dedicated to «entrepreneurs» and managed by managers who are «entrepreneurs»
• Families, leading institutions and entrepreneurs among «loyal» shareholders in the share capital
• Growing presence on newspaper and media as evidence of the strong EQUITA brand
• Opinion maker with significant engagement in institutional initiatives dedicated to capital markets and finance in general (participation to the European Commissions' Technical Expert Stakeholder Group (TESG) on SMEs, Consob Stakeholder Group, Ministry of Economics and Finance Taskforce…)

Track-Record in Diversification, Growth, Remuneration and Business Transformation

A truly independent investment bank, capable of executing a long-term diversification strategy to best-serve clients when financial services different from lending are needed, always profitable and capable of rewarding its shareholders consistently

Evolution of Net Revenues (2008-2022)

Financial Highlights (9M'23 Results)

Profitability and Resilience in a Very Difficult Environment for Investment Banks

Key Financial Highlights

EQUITA Performing Better Than Its Main International Peers

9M Performance (Jan 1 - Sep 30, 2023)	Market Cap (€m)	Net Revenues Var %	o/w Global Markets	o/w M&A & Advisory	o/w Capital Markets	o/w Asset Management	Net Profits YoY change %	Net Profits Margin %
			profibale	(12%) normalising for the very mandate closed in 2Q'23		Good performance, plus easy comparison with 2022
EQUITA	186	(7%)	+9%	(50%)	+81%	+9%	(22%) (3)	16%
Peer 1 Peer 2	224 312	(3%) (26%)	2%	(22%) (22%)	10%	n.a. (15%)	(22%) (83%)	12% 4%
Peer 3	226	17%		(6%)		17%	(14%)	30%
Peer 4	99,486	(5%)	(16%)	(30%)	4%	(3%)	(37%)	17%
Peer 5	115,875	1%	10%	(31%)	(2%)	(1%)	(15%)	17%
Peer 6	2,859	(20%)	n.a.		(30%)	(5%)	(144%) (2)	(8%)
Peer 7	4,891	(15%)		(23%)		2%	(49%)	10%
Peer 8	2,772	(18%)			n.a.		(113%) (2)	0%
Peer 9	2,364	(15%)	(8%)	(29%)	14%	n.a.	(55%)	4%
Peer 10 (1)	6,691	(23%)	27%	(40%)	(17%)	(1%)	(69%)	6%
Mean	21,444	(11%)					(60%)	9%
Median	2,772	(15%)					(52%)	8%

Very Difficult Market in Small Cap Trading, M&A and ECM

Third Parties Brokered Volumes in Italy (1)

Market figures in 3Q'23 ▪ Euronext Milan +33% YoY ▪ Euronext Growth Milan +12% YoY ▪ Bonds +21% YoY

Capital Markets and Corporate Finance

Mergers & Acquisitions | M&A (4) (countervalue, €bn)

All Divisions Performing Relatively Well to Date

Trend in Net Revenues since IPO (€m) Nine Months Results

31,5

Var '21-'22 +7%

CAGR '17-'22 +15%

24,0

Var 9M YoY (24%)

• Growth in fixed income, derivatives and certificates, more than offsetting lower trading volumes on Italian equities, especially on mid-small caps
• Directional Trading performing well, thanks also to the contribution of a Fixed Income Held-to-Collect Portfolio
• Performance impacted by the tough comparison with 2022 (2Q'22 includes the record performance of EQUITA K Finance with one very profitable mandate). +15% in Revenues YoY excluding such deal
• Capital Markets up materially year-onyear, partially offsetting the decline in M&A due to tough markets
• Increase in the mix of illiquid, proprietary assets under management
• Investment Portfolio contributing positively YoY

Investment

Alternative Asset

AM Fees Perf. Fees

2017 2018 2019 2020 2021 2022 9M'22 9M'23

Disciplined Approach on Costs Confirmed despite Significant Investments. Strong Balance Sheet to Foster Further Growth

P&L (€m)	2020	2021	2022	9M' 23	9M' 22	Var % 9M '23 vs '22
Net Revenues	68.2	90.4	86.9	59.5	64.2	(7%)
Personnel costs	(32.3)	(42.7)	(42.2)	(28.1)	(30.0)	(7%)
Operating costs	(18.2)	(18.4)	(19.4)	(16.3)	(13.7)	19%
Total costs	(50.6)	(61.2)	(61.6)
Profit before taxes	17.6	29.2	25.3	15.1	20.5	(26%)
Taxes	(4.7)	(7.1)	(7.1)	(4.5)	(5.9)	(22%)
Tax rate	27%	24%	28%	30%	29%
Minorities	(0.6)	(0.6)	(2.0)	(0.6)	(1.5)	(62%)
Long-term inc. plan (LTIP)	-	-	(0.9)	(0.3)	-
Net Profits	12.3	21.5	15.2	9.7	13.1	(26%)
Adjusted Net Profits	12.3	21.5	15.2	10.3	13.1	(22%)
Comp/Revenues %	47%	47%	49%	47%	47%
Cost/Income %	74%	68%	71%	75%	68%
Cost/Income % (ex. Non-rec.)	74%	68%	71%	73%	68%
Adjusted Net Profit %	18%	24%	18%	17%	20%
Balance Sheet (€m)	2020	2021	2022	9M' 23
Assets	286	316	399	370
o/w Cash & Equivalents	117	136	108	75
o/w Intangible Assets	28	27	27	27
Liabilities	200	216	295	273		Strong capital
Sharholders Equity	86	99	104	97		ratios, consistently above minimum requirements
IFR Ratio	n.a.	587%	489%	579%

(€m)	9M '23	9M '22	Var %
Personnel costs	(28.1)	(30.0)	(7%)
Comp/Revenues %	47.2%	46.8%	1%
# Employees (EoP)	196	186	5%

(€m)		9M '23	9M '22	Var %
Operating costs		(16.3)	(13.7)	19%	IT costs up 2% YoY, driven by inflation as well as development
of which IT		(4.6)	(4.5)	2%	of a new CMS
of which Trading fees		(2.4)	(2.2)	8%
of which Other (marketing, governance)			(6.9)	23%
0f which Non-Recurring		(0.8)	-	n.a.	Other costs up 23%, driven by
	Non-recurring items, mainly linked to the 50th anniversary of EQUITA (new visual identity, new website, events…)				higher marketing and inflation on contracts

Outlook and What's Next

A Lot of Initiatives and Investments Made, in Line With the Business Plan

Global Markets and Research	▪ Diversification of the product offering in the Global Markets (bonds, certificates, derivatives, US equities…) Expansion of the research coverage, with an increasing number of foreign listed companies ▪ Implementation of new business solutions (CRM, CMS) to boosts productivity and generate commercial synergies ▪ ▪ New team dedicated to family offices
Investment Banking	Hiring of senior professionals (Consumer, FIG, Industrial, Structure Finance) to diversify and strengthen the offering ▪ ▪ Constant engagement with senior advisors and increasing presence in Rome ▪ Partnership with Silvia Rovere to acquire a 30% stake in Sensible Capital (real estate advisory boutique) to add to the Investment Banking division a new area of expertise. Cross-selling opportunities with other areas of business
Alternative Asset Management	Fund raising of EQUITA Smart Capital - ELTIF completed successfully, with €98m commitments, becoming the largest ▪ private equity, non-captive, retail alternative PIR in Italy ▪ First investment in the DACH area completed by EPD II, the latter expected to be fully invested by year-end (87% today). Launch of the third fund EPD III expected in 1Q'24 Onboarding of a new team of experts in renewable infrastructure. Appointment of ▪ Potential investment of up to Stefano Donnarumma as senior advisor. Start of fundraising of EQUITA Green Impact Fund €75m in the initiative confirmed by one institutional investor expected in 1Q'24
Group	Office space increased to accommodate growing workforce and corporate events ▪ Renewal of corporate bodies, with strong presence of Independent Directors and female members ▪ in the Board of Directors (including the Chair) ▪ Increase in brand awareness by leveraging on the EQUITA 50th anniversary. New corporate and visual identity

22

Widespread Institutional Effort to Promote Financial and Capital Markets

Recent Years Have Been Tough but Things are Expected to Improve in 2024

Market scenario

Macroeconomic scenario is still uncertain for the next months …

• Global environment affected by war, political tensions, inflation, possible recession
• Decrease in trading volumes, especially in midsmall caps
• Capital Markets still underdeveloped in Italy
• Lower M&A activity affected by concerns about the coming two years
• Difficult fund-raising environment for alternative, illiquid assets

… but there is widespread expectation that things will improve for our business

• Interest rates at normalised levels are now digested
• Ongoing simplification to ease access to capital markets potentially increasing liquidity in financial markets
• Large portion of debt to be refinanced in the next two years
• M&A volumes expected to recover
• In case of recession, Italian corporates are healthier than ten years ago

Targets announced and Expectations about the Future

EQUITA 2024 (three-year business plan)

▪ Net Profits

▪ Net Revenues

>110m >25m ▪ Dividends distributed

>50m

Rewarding shareholders' remuneration confirmed,

in line with targets announced and on the back of the solid, profitable track record of EQUITA (also considering the €10m earnings retained since IPO), despite a potential delay in growth in Net Revenues and Net Profits due to tougher markets

Proposal of €0.35 Dividend per Share, in Line with the Previous Year

On the back of the Net Profits recorded in 9M'23 and considering expectations for the rest of the year – which includes the good performance recorded in October and November year-to-date – a dividend proposal of €0.35 per share is aligned to shareholders' remuneration targets, also considering the >€10m earnings retained since IPO

Appendix

An Increasing Footprint Outside Italy in M&A and Corporate Finance

Solid track record in the execution of cross-border M&A transactions, helping corporates and private equity funds

Balance Sheet

Strong balance sheet and capital ratios confirmed

(€m)	9M'23	1H'23	1Q'23	FY'22	1H'22	FY'21	FY'20
Cash & Cash equivalents	75.1	74.0	106.3	107.9	125.3	136.1	117.2
Financial assets at fair value with impact on P&L	99.3	95.5	90.4	111.7	79.6	49.2	43.8
Financial assets at amortized cost	122.5	144.6	128.0	99.6	97.1	91.4	86.1
Equity investments	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Intangible assets	26.7	26.8	26.8	26.9	27.1	27.2	27.5
Tangible assets	5.7	5.8	6.0	4.1	4.6	5.2	6.2
Tax assets	4.9	5.3	8.1	7.5	4.7	4.4	3.1
Other assets	36.0	34.0	39.4	41.7	42.1	1.9	1.6
Total Assets	370.3	386.1	405.0	399.5	380.5	315.6	285.8
Debt	203.0	220.0	222.5	221.3	197.4	175.6	171.3
Tax liabilities	1.6	1.1	5.3	3.6	3.4	6.0	2.2
Other liabilities	64.1	66.1	62.7	64.4	87.7	27.9	21.7
Employees' termination liabilities	2.0	2.2	2.2	2.1	2.1	2.4	2.3
Allowance for risks and charges	2.4	2.1	3.8	3.8	3.2	4.4	2.7
Total Liabilities	273.1	291.4	296,5	295.2	284.8	216.3	200.1
Share capital	11.6	11.6	11.6	11.6	11.6	81.3	76.8
Treasury shares	(3.2)	(3.2)	(3.3)	(3.9)	(4.0)	(4.1)	(4.1)
Reserves	78.5	78.2	96.3	79.4	76.5	69.9	65.4
Net Profits of the period	10.3	8.1	3.8	17.3	11.7	22.1	12.9
Third parties' equity	-	-	-	-	-	-	0.1
Shareholders' Equity	97.2	94.7	108.5	104.3	95.7	99.3	85.7
Total Liabilities and Shareholders' Equity	370.3	386.1	405.0	399.5	380.5	315.6	285.8
ROTE %	22%	23%	26%	29%	38%	44%	27%
IFR %	579%	538%	550%	489%	648%	587%	N/A

www.equita.eu