Equita Group

Investor Presentation • Sep 7, 2023

EQUITA Group 1H'23 Financial Results

September 7th, 2023

Agenda

• 1. Market Update and 1H'23 Achievements
• 2. Financial Performance in 1H'23
• 3. Outlook 2023 and Closing Remarks
• 4. Appendix

Market Update and 1H'23 Achievements

Challenging Trends due to Rising Concerns about the Future

THIRD PARTIES BROKERED VOLUMES IN ITALY (1)

22

Var 1H 22-23 +56%

24

CAPITAL MARKETS

32 23 23 52 35 12 94 52 44 100 84 2018 2019 2020 2021 2022 2023 Var 1H 22-23 (63%)

€33bn Average last 5 years (1H'18-1H'22) -64% (1H'23 vs Average L5YR)

MERGERS & ACQUISITIONS (4)

(1) Source: ASSOSIM; MOT figures referred to the aggregate of DomesticMOT, ExtraMOT and EuroMOT. (2) Source: Dealogic; 1H'22 figure excludes the right issue completed by Stellantis (€732m). (3) Source: Bondradar. (4) Source: KPMG.

1H FY

Leadership in Financial and Capital Markets confirmed

At the Top of International Rankings for many years

High Markets Shares in the

Brokerage Industry

2°	(1)
	Italy Best
2023	Research Team

Tousu	(1)
est
rh Tonm

Italy | Corporate 2023 Access 2° (1)

Most voted broker in Italy in the 2023 Institutional Investor survey and always ranked among Top 3 brokers in all categories

Significant market shares in all relevant segments, working as barriers to entry and as potential growth opportunity in case of increase in trading volumes in Italy

1 Investment Bank in Europe by number of IPOs completed in 1H'23 with 5 deals

Snapshot on First-Half 2023 Consolidated Results

⁞ KEY FINANCIAL HIGHLIGHTS

⁞ DIVISIONAL PERFORMANCE

Comparison between EQUITA and the Main International Peers

(Jan 1 - Jun 30, 2023)			Net Revenues Var %	o/w Global Markets	o/w M&A & Advisory		o/w Capital Markets	o/w Asset Management	Net Profits Var %
	EQUITA		(11%)	5%	(63%)		101%	8%	(22%)
		Peer involved in
	Peer 1	traditional banking activities (growth driven by the	18%	(4%)	(27%)		(29%)	14%	23%
	Peer 2	increase in Net Interest Income)	(10%)	6%	(33%)		(6%)	n.a.	(37%)
European peers	Peer 3		(28%)		(27%)			(8%)	(81%)
	Peer 4		13%		5%			11%	9%
Mean			(2%)						(22%)
Median			2%						(14%)
	Peer 1		(7%)	(21%)	(37%)		(3%)	8%	(37%)
	Peer 2		0%	(17%)	(29%)		6%	(5%)	(18%)
	Peer 3		(11%)	n.a.		(22%)		(8%)	(170%)*
Global / US	Peer 4		(21%)		(26%)			(2%)	(52%)
peers	Peer 5		(32%)			n.a.			(108%)*
	Peer 6		(17%)	(12%)	(29%)		32%	n.a.	(38%)
	Peer 7		(23%)	32%	(40%)		(30%)	26%	(67%)
Mean			(16%)						(70%)
Median			(17%)						(52%)

Financial Performance in 1H'23

Divisional Performance

Directional Trading Client-Driven Trading Sales & Trading

2017 2018 2019 2020 2021 2022 1H'23

AM Fees Perf. Fees

⁞ LAST QUARTER AND HALF-YEAR NET REVENUES (€M)

Directional Trading Client-Driven Trading Sales & Trading

Growth in fixed income, derivatives and certificates, more than compensating lower trading volumes on Italian equities, especially mid-small caps

Directional Trading performing well, thanks also to the contribution of a Fixed Income HTC Portfolio (1)

Performance impacted by the tough comparison with 2022 (2Q'22 includes the record performance of EQUITA K Finance with one very profitable mandate). +29% in Revenues YoY excluding such deal

Capital Markets up materially year-on-year, 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

P&L & Focus on Costs

SDIR
CERTIFIED

(€ mln)	2020	2021	2022	1H'22	1H'23	Var % H1 '23 vs '22
Client-related (S&T, CD&MM, IB…)	67.2	83.5	83.0	46.1	39.0	(15%)
Non-client related (Directional Trading)	0.4	6.4	2.5	1.8	3.1	76%
Investment Portfolio	0.6	0.5	1.3	0.3	0.7	160%
Net Revenues	68.2	90.4	86.9	48.2	42.8	(11%)
Personnel costs	(32.3)	(42.8)	(42.8)	(22.5)	(20.0)	(11%)
Operating costs	(18.2)	(18.4)	(18.4)	(9.3)	(11.1)	20%
Total costs	(50.6)	(61.2)	(61.2)	(31.8)	(31.2)	(2%)
Profit before taxes	17.6	29.2	29.2	16.4	11.7	(29%)
Taxes	(4.7)	(7.1)	(7.1)	(4.7)	(3.4)	(27%)
Tax rate	27%	24%	24%	28%	29%
Minorities	(0.6)	(0.6)	(0.6)	(1.4)	(0.1)	(92%)
Net Profits	12.3	21.5	21.5	10.3	8.0	(21%)
Comp/Revenues %	47%	47%	47%	47%	47%
Cost/Income %	74%	68%	68%	66%	73%
Cost/Income % (ex. Non-rec.)	74%	68%	68%	66%	71%
Net Profit %	18%	24%	24%	21%	19%

(€ mln)	1H'22 1H'23 Var %
Personnel costs	(22.5) (20.0) (11%)
Comp/Revenues %	(46.7%) (46.8%)
# Employees (EoP)	178 195 10%

(€ mln)	1H'22	1H'23	Var %
Operating costs	(9.3)	(11.1)	20%	IT costs up 5% YoY, driven by inflation as well as development of a new CMS
of which IT	(3.0)	(3.2)	5%
of which Trading fees	(1.6)	(1.7)	7%
of which Other (marketing, governance)		(5.5)	17%
0f which Non-Recurring	-	(0.8)	n.m.	Other costs up 17%, driven by higher
Non-recurring items, mainly linked to the 50th anniversary of EQUITA (new visual identity, new website, events…)				marketing and inflation on contracts

Outlook 2023 and Closing Remarks

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 ▪ 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 €98.4m 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. Launch of the third fund EPD III expected in 4Q'23-1Q'24 Onboarding of a new team of experts in renewable infrastructure. Appointment of a ▪ Potential investment of up to senior advisor to be announced soon. Start of fundraising of EQUITA Green Impact Fund €75m in the initiative confirmed by one institutional investor expected in 4Q'23-1Q'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

Ongoing Simplification to Ease Access To Capital Markets

Considerations about the Future

Macroeconomic scenario in the next two years still uncertain

• Global environment affected by war, political tensions, inflation, possible recession
• Decrease in trading volumes, especially in mid-small 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

Mitigants: ongoing simplification to ease access to capital markets and potentially increase liquidity in financial markets

Targets announced and Expectations about the Future

>110m >25m ▪ Dividends distributed >50m

remuneration confirmed, in line with targets announced and

Rewarding shareholders'

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

Market scenario

Outlook 2023

On the back of the Net Profits recorded in 1H'23 and considering expectations for the rest of the year – absent significant market changes – the Board of Directors confirmed its willingness to submit to the next Shareholders' Meeting a dividend proposal not lower than €0.30 per share in 2024, in line with the shareholders' remuneration target announced in the business plan

Appendix

Balance Sheet

Strong balance sheet and capital ratios confirmed

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

www.equita.eu