Equita Group

Investor Presentation • Sep 12, 2024

EQUITA Group 1H'24 Financial Results

September 12th, 2024 – IR Conference Call

1H'24 performance benefitting from a good set of results in 2Q'24

Key Consolidated Highlights

Key Divisional Highlights

Market Overview

Improving environment in Italy, especially for S&T and large M&A, but still weak levels of activity on small-mid caps and in ECM. Potential turning point expected in the next months

Third Parties Brokered Volumes in Italy (1)

Capital Markets and Corporate Finance

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

1H'24 vs 1H'23 +147%

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Recent Achievements and 1H'24 Financial Results

Strong positioning confirmed by recent achievements and initiatives, in all areas

(1) AMF Italia – 1H'24 market shares – Third party brokerage. (2) Institutional Investor – Extel 2024 survey. (3) Selected deals from year-to-date mandates and investments. (4) Excluding performance fees and fees from Investment Portfolio.

Improving market environment, still not contributing materially to the Revenues of all divisions

Commentary

• Double-digit growth in S&T thanks to high volumes on Italian banks and blue chips
• Still weak volumes on small & mid-caps
• Normalized levels of trading on fixed incomes and derivatives compared to the previous year
• Directional Trading performing in line with the previous year and including the contribution of an HTC portfolio

Alternative Asset

AM Fees Inv. Portfolio

• Large M&A mandates finally back to market
• Soft performance in mid-market M&A due to seasonality, expected to recover by year-end

• Capital markets still below 1H'23, suffering the lack of ECM mandates, despite the very good performance in DCM

• First time contribution of EGIF (renewable infrastructures fund) starting from Jun'24

• Intense capital deployment, with 4 investments closed by the private debt team and 2 by the private equity team to date
• 2Q'23 included an equalization fee deriving from the final closing of EQUITA Smart Capital – ELTIF

Disciplined approach on costs confirmed

Reclassified P&L (€m)

	1H'24	1H'23	Var %	2Q'24	2Q'23	Var %
Client-related	36,8	39,0	(6%)	21,9	21,2	3%
Non-client (Dir. Trading)	3,0	3,1	(5%)	2,1	1,9	11%
Investment portfolio	1,1	0,7	53%	(0,2)	0,4	(141%)
Net revenues	40,9	42,8	(5%)	23,7	23,5	1%
Total Costs (1)	(29,3)	(31,2)	(6%)	(16,4)	(17,3)	(5%)
% (1)(2) Cost/Income Adjusted	(71,8%)	(70,9%)		(68,9%)	(70,2%)
Cost/Income % (1) P&L	(71,8%)	(72,8%)		(68,9%)	(73,5%)
taxes (1) Profit before	11,5	11,7	(1%)	7,4	6,2	18%
Taxes (1)	(3,4)	(3,4)	0%	(2,2)	(1,9)	19%
Tax rate	(29,6%)	(29,3%)		(30,3%)	(30,1%)
Minorities	-	(0,1)		-	(0,1)
LTIP	-	(0,1)		-	(0,0)
Net Profits	8,1	8,0	1%	5,1	4,2	19%
Net Profits (1)(2) Adjusted	8,1	8,7	(7%)	5,1	4,8	5%
ROTE	25%	23%

Focus on Personnel Costs

	1H'24	1H'23	Var %
Costs (1) Personnel	(18,9)	(20,0)	(6%)
FTEs (End of Period)	192	195	(2%)
Comps / Revenues	(46,3%)	(46,8%)
Normalized Comps /

	Focus on Operating Expenses	Increase in IT expenses related to higher post-trading business in Global Markets
		1H'24	1H'23	Var %	requiring infoproviding services (fully variable cost)
	Operating Costs	(10,4)	(11,1)	(6%)
	Information Technology	(3,3)	(3,2)	5%
Trading Fees		(1,7)	(1,7)	0%
One-offs	(anniversary…)	-	(0,8)	n.a.
Other	(marketing, governance)	(5,4)	(5,5)	(2%)
					Non-recurring items, mainly linked to the 50th anniversary of EQUITA (new
	Cost/Income % (1)	(71,8%)	(72,8%)		visual identity, new website, events…)
	% (1)(2) Cost/Income Adjusted	(71,8%)	(70,9%)

Healthy balance sheet, with capital ratios well above minimum requirements

(€m)	1H'24	1Q'24	FY'23	9M'23	1H'23	1Q'23	FY'22	1H'22	FY'21	FY'20
Cash & Cash equivalents	90.5	87.5	130.5	75.1	74.0	106.3	107.9	125.3	136.1	117.2
Financial assets at fair value with impact on P&L	94.0	102.0	77.4	99.3	95.5	90.4	111.7	79.6	49.2	43.8
Financial assets at amortized cost	118.2	122.7	101.2	122.5	144.6	128.0	99.6	97.1	91.4	86.1
Equity investments	0.6	0.6	0.6	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Intangible assets	26.6	26.6	26.6	26.7	26.8	26.8	26.9	27.1	27.2	27.5
Tangible assets	4.3	5.7	6.0	5.7	5.8	6.0	4.1	4.6	5.2	6.2
Tax assets	3.1	3.6	3.2	4.9	5.3	8.1	7.5	4.7	4.4	3.1
Other assets	27.2	32.6	34.1	36.0	34.0	39.4	41.7	42.1	1.9	1.6
Total Assets	364.5	381.3	379.7	370.3	386.1	405.0	399.5	380.5	315.6	285.8
Debt	208.1	213.7	213.9	203.0	220.0	222.5	221.3	197.4	175.6	171.3
Tax liabilities	4.1	2.6	1.3	1.6	1.1	5.3	3.6	3.4	6.0	2.2
Other liabilities	50.7	49.1	50.8	64.1	66.1	62.7	64.4	87.7	27.9	21.7
Employees' termination liabilities	1.9	1.9	1.9	2.0	2.2	2.2	2.1	2.1	2.4	2.3
Allowance for risks and charges	2.1	2.3	3.2	2.4	2.1	3.8	3.8	3.2	4.4	2.7
Total Liabilities	266.8	269.6	271.1	273.1	291.4	296,5	295.2	284.8	216.3	200.1
Share capital	11.9	11.7	11.7	11.6	11.6	11.6	11.6	11.6	11.6	11.6
Treasury shares	(2.6)	(2.7)	(3.2)	(3.2)	(3.2)	(3.3)	(3.9)	(4.0)	(4.1)	(4.1)
Reserves	80.3	96.4	80.0	78.5	78.2	96.3	79.4	76.5	69.9	65.4
Net Profits of the period	8.1	3.0	16.8	10.3	8.1	3.8	17.3	11.7	22.1	12.9
Third parties' equity	-	3.4	3.2	-	-	-	-	-	-	0.1
Shareholders' Equity	97.7	111.7	108.6	97.2	94.7	108.5	104.3	95.7	99.3	85.7
Total Liabilities and Shareholders' Equity	364.5	381.3	379.7	370.3	386.1	405.0	399.5	380.5	315.6	285.8
ROTE %	25%	21%	26%	22%	23%	26%	29%	38%	44%	27%
IFR %	364%	360%	360%	402%	373%	382%	N/A	N/A	N/A	N/A

Closing Remarks

Considerations about the next 18 months

Market scenario

▪ Soft-landing or no-landing scenario for all major economies ▪ Decrease in interest rates and expansionary monetary policies ▪ Further progress in institutional initiatives to ease access to capital markets and increase liquidity in financial markets, especially on small & mid-caps

Business outlook

▪ Improving environment for Investment Banking activities also in Italy, as experienced by international peers in the US and other developed countries in the first part of 2024 ▪ Growing number of M&A announcements, mainly driven by smaller-size deals ▪ Turning point expected in ECM with the re-opening of the IPO market ▪ Positive contribution from brokerage business, enhanced by the increasing interest for small & mid-caps ▪ Increase in AuM and AM fees, mainly driven by fundraising of new illiquid proprietary products (EPD III, EGIF), and first carried interest on private debt funds from 2025

Expectations

• FY'24 results coherent with shareholders' remuneration targets Significant improvement of Group's results starting from 2025

Q&A Session

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