Equita Group

Investor Presentation • Mar 18, 2024

Investor Presentation FY'23 Results

March 19th, 2024 – STAR Conference

Agenda

• 1. EQUITA at a Glance
• 2. Financial Highlights (FY'23)
• 3. Results since IPO
• 4. What's Next and Closing Remarks
• 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

(1) Source: 2023 Institutional Investors' survey, unweighted rankings. (2) Source: Dealogic. Ranking by # of deals. Deals below €10m size are excluded. (3) Source: Mergermarket. Ranking by # of deals. Proforma to include EQUITA SIM and EQUITA K Finance deals. (4) Source: Bloomberg and Bond Radar. Ranking by # of High Yield and Not Rated issues. (5) Shareholding Structure and Market Cap as of 14 March 2024. (6) Market float figure includes 5% stake of Fenera Holding

Our Story: Half-a-Century of Independent Thinking

of the Italian Stock Exchange

EQUITA was founded in 1973 as one of the first independent Italian merchant banks.

Our Unique Business Model and What We Bring to the Table

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

Financial Highlights (FY'23 Results)

Very Resilient Performance in FY'23 and Significant Growth in 4Q'23

Divisional Performance

Tough Year for Equities (Brokerage, Capital Markets) and M&A in Italy

(value, €bn)

(47%) vs AVG FY'13-FY'22 (€12.2bn)

€7.5bn Average last 5 years (FY'18-FY'22) -13% (FY'23 vs Average last 5 years)

^{62 62 57}

(value, €bn)

87

47

59

€bn # deals

5,2 8,5 8,7 8,3 6,7 6,5

2018 2019 2020 2021 2022 2023

(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.

€28.8bn Average last 5 years (FY'18-FY'22) +8% (FY'23 vs Average last 5 years)

^{44 48}

21,3 26,3 30,2 41,8 24,4 31,1

2018 2019 2020 2021 2022 2023

68

(value, €bn)

39

54

Var FY'22-FY'23 +38%

Var FY'22-FY'23 +28%

€bn # deals

Var FY'22-FY'23 +26%

Var FY'22-FY'23 (3%)

Better Performance compared to Peers, Implied Increase in Market Share

Comparison between Selected International Investment Banks and Advisory Firms vs EQUITA

FY'23 vs FY'22 (1 Jan – 31 Dec)		% Var Net Revenues	% Var Net Profits	Margin %
Investment bank	ABG Sundal Collier	0%	(13%)	14%
Investment bank	Baader Bank	7%	(68%)	2%
Investment bank	Goldman Sachs	(2%)	(27%)	17%
Investment bank	Jefferies (1)	(21%)	(66%)	6%
Investment bank	Morgan Stanley	1%	(19%)	16%
Investment bank	Piper Sandler	(7%)	(17%)	13%
Investment bank	Stifel	(1%)	(20%)	13%
Investment bank	UBS	18%	> 100% (excl.)	Excluded
Advisory firm	Evercore	(12%)	(46%)	10%
Advisory firm	Houlihan Lokey	0%	6%	15%
Advisory firm	Lazard	(12%)	(80%)	3%
Advisory firm	Moelis & Co	(11%)	< 100% (excl.)	Excluded
Advisory firm	Perella Weinberg	3%	< 100% (excl.)	Excluded
Advisory firm	PJT Partners	12%	(10%)	7%
	EQUITA	2%	5%	18%
	Mean - Investment Banks	(1%)	(33%)	11%
	Median - Investment Banks	(0%)	(20%)	13%
	Mean - Financial Advisors	(3%)	(33%)	9%
	Median - Financial Advisors	(6%)	(28%)	9%

Strong Results in All Divisions

Trend in Net Revenues since IPO and Divisional Performance (€m) Commentary

AM Fees Inv. Portfolio Perf. Fees

• Sales & Trading affected by the overall weak levels of investors' activity on equities, especially in Small-Mid Caps trading
• Client-Driven Trading & Market Making benefitted from higher levels of trading on bonds, certificates and derivatives
• Directional Trading recorded its best year since IPO, well-above average (€3.2m average '17-'22)
• Very resilient performance compared to the underlying market, with year-on-year growth impacted by the comparison effect with 2022.
• Capital Markets materially up year-on-year, partially offsetting the decline in M&A (and despite an increase in the number of mandates)
• Excluding one very profitable mandate closed in 2Q'22 by EQUITA K Finance, Revenues grew 19% in FY'23
• Revenue mix moving to AM fees from illiquid, proprietary assets (65% of FY'23 revenues)(1)
• Investment Portfolio contributed positively, also thanks to a capital gain arising from the purchase of an additional fund share in EPD at a discount to the NAV

Investment Banking: Plenty of Growth Opportunities

Investment Banking Revenues since IPO (€m)

P&L and Focus on Cost Structure

Reclassified P&L (€m)

	FY'23	FY'22	Var % 23-22	4Q'23	4Q'22	4Q Var % 23-22
Client-related	76,7	82,3	(7%)	23,3	20,8	12%
Non-client (Dir. Trading)	7,4	2,7	176%	2,5	1,1	132%
Investment portfolio	3,4	1,2	190%	2,3	0,2	n.m.
Performance fees	-	-	n.a.	-	-	n.a.
Net revenues	87,5	86,2	2%	28,1	22,0	27%
Total Costs (1)	(63,4)	(60,9)	4%	(19,1)	(17,2)	11%
% (2) Cost/Income Adjusted	(71,5%) P&L	(70,7%)		(68%)	(78%)
Cost/Income %	(72,5%)	(70,7%)		(68%)	(78%)
taxes (1) Profit before	24,1	25,3	(5%)	9,0	4,8	86%
Taxes (1)	(7,0)	(7,1)	(1%)	(2,5)	(1,3)	99%
Tax rate	(29%)	(28%)		(28%)	(26%)
Minorities	(0,7)	(2,0)	(66%)	(0,1)	(0,5)	(77%)
LTIP	(0,3)	(0,9)		(0,0)	(0,9)
Net Profits	16,1	15,2	5%	6,3	2,2	193%
Net Profits (1)(2) Adjusted	16,9	16,2	5%	6,4	3,1	106%
ROTE	26%	29%				€0.35 dividend on Adjusted	per share in line with FY'22 (≈100% payout Net Profit)

Focus on Personnel

	FY'23	FY'22	Var % (1%)
Costs (1) Personnel	(41,9)	(42,2)
FTEs (End of Period)	195	188	4%
Comps / Revenues	(47,9%)	(48,9%)	(2%)
Normalized Comps / Revenues	(49,5%)

Focus on Operating Expenses

		FY'23	FY'22	Var %
Operating Costs	(21,5)	(18,7)	15%
Information Technology		(6,3)	(6,2)	1%
Trading Fees		(3,1)	(2,9)	6%
Non-Recurring	(anniversary…)	(0,8)	-	n.a.
Other (marketing, governance)		(11,3)	(9,6)	17%
Cost/Income % (1) Cost/Income Adjusted % (ex. non-rec.)	(72,4%) (71,5%) Non-recurring items, identity, new website,	(70,7%) (70,7%)	Other costs up 17%, driven by higher marketing and inflation on contracts

Results since IPO

Successful Track-Record since IPO

Successful Track-Record since IPO

shares (2023 vs 2017)

What's Next and Closing Remarks

What's Next

				Mitigants
ket ar M	Market Scenario	▪ Still difficult global environment (war, inflation, recession…) ▪ Soft start of the year in terms of trading volumes on mid-small caps and ECM transactions in Italy ▪ Challenging fund-raising environment for alternative, illiquid assets	▪ Higher interest rates 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 2024-2025 €40bn of M&A transactions announced in the Italian market ▪
	Global Markets and Research	Fixed income desk benefitting from increasing positioning and ▪ investors' appeal on bonds Equity volumes on mid-small caps expected to recover ▪	▪	Expansion of research coverage on Italian and European listed companies
es u n ve Re	Investment Banking	▪ Strong pipeline in M&A, both in mid-market, large and public transactions ▪ Capital Markets activities expected to improve in 2H'24	▪ ▪	Increase in positioning, thanks to recent senior hirings, contribution from senior advisors and new areas of expertise (EQUITA Real Estate) Consolidation of Group's presence in Rome
	Alternative Asset Management	Growth in illiquid proprietary assets following fundraising of ▪ EPD III and EGIF Focus on capital deployment investing in private capital ▪ opportunities, on the basis of current interesting pipeline	▪	Positive contribution to Net Revenues from the Investment Portfolio and carried interest from 2025
osts C	Group	No other material additions of workforce or investments needed ▪ ▪ Adequate structure to benefit from increase in business volumes, revenues and net profits (operating leverage)	▪ ▪	Further optimisation of rental spaces Focus on business-related marketing to boost revenues with clients
y g Strate	M&A & Strategic Initiatives	Scouting of external growth opportunities with bolt-on ▪ acquisitions, in Italy and abroad Preliminary discussions with EKF to acquire minorities and ▪ extend the partnership	▪	Always open to strategic partnerships that could accelerate growth of the business

Some Reasons to Invest

Appendix

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

Evolution of Net Revenues (2008-2023)

(1) Net Profits 2021 adjusted to normalise tax rate to 28% (average tax rate of 2020 and 2022 fiscal years). (2) Total Shareholder Return in the period 22 November 2017 – 11 March 2024. (3) €0.35 dividend per share proposed by the Board of Directors to the next Shareholders' Meeting, to be distributed in 2024.

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

Offering & Expertise Key Facts

Why Us?

• Leading ECM franchise in Italy, #6 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

Increasing market share in

Evolution of Net Revenues since IPO

Selected 2023 Credentials

Investment Banking: More than 50 Mandates in 2023

Public & Large M&A (selected credentials) Mid-Market M&A (selected credentials)

0 DEACAPITAL	Postevita	(10) -1 Fridan Tersion Page:	MEF) MEF ( 2000) AIRWAYS	unieuro	:= II M	મેન / Servizi Italia	next Novel
DeA Capital	Postevita	Italian Design Brands	MEF	Unieuro	TIM	Servizi Italia	Acquisition of the merchant
Tender Offer by Fam. De Agostini €128 Ken	Tender Offer on Net Insurance shares €187.8m	Disposal of a 51% stake of Investindesign to TIP €72m	Sale of a stake of ITA Airways to Lufthansa €325m	Acquisition of Covercare €60m	Disposal of NetCo €217bn	Tender Offer By Cometa 621.7mm	acquiring business of Banca di Cividale €30 Brn
Fairness Opinion	Financial Advisor	Financial Advisor	Financial Advisor	Financial Advisor	Financial Advisor	Fairness Opinion	Financial Advisor
EEQUITA	EEQUITA	E EQUITA	SEQUITA	SEQUITA	EEQUITA	EEQUITA	E EQUITA
January, 2023	April, 2023	Max, 2023	May, 2023	October, 2023	November, 2023	November, 2023	December, 2025

Equity Capital Markets (ECM)

Debt Capital Markets (DCM)

: 000 eni »	amco	C BCC BANCA	& Bancallis	MAIRE	CARRARO	cdp	ALERIONCLEANPOWER
Eni	Amco	Iccrea Banca	Banca Ifis	MARE	Carraro	Cassa Depositi e Prestiti	Alerion Clean Power
Sustainability-Linked	Senior Unsecured	Social Senior Preferred	Senior Preferred	Sustainability-Linked	Initial Public Offering	Senior Unsecured Retail	Senior Unsecured
Bond Issue	Bond Issue	Bond Issue	Bond issue	Bond Issue	(IPO	Band Issue	Green Bond Issue
€2bn	€500m	€500m	€110m	€200m	€690m	EZber	€170m
Dealer	Joint Lead Manager	Co-Manager	Sole Dealer	Placement Agerit	Co-Manager	Dealer	Placement Agent
EEQUITA	EEQUITA	를 EQUITA	EEQUITA	SEQUITA	E EQUITA	SEQUITA	E EQUITA
January, 2023	January, 2023	January, 2023	March, 2025	October, 2023	November, 2023	November, 2023	Docember, 2023

Investment Banking: 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

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

Offering & Expertise Key Facts

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)

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

Offering & Expertise Key Facts

▪ 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 products, performance generation and in growing team size
• Model based on recurring revenues' stream from alternative assets, potential upside from carried interest, and significant synergies from the collaboration with other areas of the Group (research, trading floor, investment banking)
• Low capital absorption, strong operating leverage, scalable business

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

3,300+ mentions On domestic and international newspapers and media in the last 12 months 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. Recent initiatives dedicated to sustainability The EQUITA brand

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…)

Successful Track-Record since IPO

	Key Metrics	2017 (IPO)		March 2024	Variation
						3.3m shares distributed to professionals to:
	No. of shares	50.0m		51.3m	+1.3m	Execute M&A deals ▪ Serve incentive plans ▪ required by applicable
Share Capital	No. of treasury shares	4.7m		2.7m	+2.0m	regulation ▪ Align interests of new
	No. of outstanding shares	45.3m		48.6m	+3.3m	senior hirings
						+7.3% outstanding shares (6.8% dilution)
Key	Adjusted Net Profits	€11.2m		€16.9m	+€5.7m	+51% vs IPO
Financials	Adj. Earnings per share (EPS, fully diluted)(1)	€0.242		€0.345	+€0.103	+42% vs IPO
	Management and Equita professionals	54% / 60%		40% / 54%	Management still the largest shareholder with 33% stake and 47% of votes in the
	Of which Management Pact	38% / 42%		33% / 47%	Shareholders' Meeting
Ownership Structure	Float / Market	37%/ 40%		55% / 46%	Significant increase in market float
(% share capital / % votes in the Shareholders' Meeting)	of which Significant Shareholders (Fenera Holding)	- / -		5% / 7%
	Of which Families, Entrepreneurs and institutions (May'23 - Placement)	- / -		11% / 8%
	Treasury shares	9%/ -		5% / -

Balance Sheet

(€m)	FY'23	9M'23	1H'23	1Q'23	FY'22	1H'22	FY'21	FY'20
Cash & Cash equivalents	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	77.4	99.3	95.5	90.4	111.7	79.6	49.2	43.8
Financial assets at amortized cost	101.2	122.5	144.6	128.0	99.6	97.1	91.4	86.1
Equity investments	0.6	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Intangible assets	26.6	26.7	26.8	26.8	26.9	27.1	27.2	27.5
Tangible assets	6.0	5.7	5.8	6.0	4.1	4.6	5.2	6.2
Tax assets	3.2	4.9	5.3	8.1	7.5	4.7	4.4	3.1
Other assets	34.1	36.0	34.0	39.4	41.7	42.1	1.9	1.6
Total Assets	379.7	370.3	386.1	405.0	399.5	380.5	315.6	285.8
Debt	213.9	203.0	220.0	222.5	221.3	197.4	175.6	171.3
Tax liabilities	1.3	1.6	1.1	5.3	3.6	3.4	6.0	2.2
Other liabilities	50.8	64.1	66.1	62.7	64.4	87.7	27.9	21.7
Employees' termination liabilities	1.9	2.0	2.2	2.2	2.1	2.1	2.4	2.3
Allowance for risks and charges	3.2	2.4	2.1	3.8	3.8	3.2	4.4	2.7
Total Liabilities	271.1	273.1	291.4	296,5	295.2	284.8	216.3	200.1
Share capital	11.7	11.6	11.6	11.6	11.6	11.6	81.3	76.8
Treasury shares	(3.2)	(3.2)	(3.2)	(3.3)	(3.9)	(4.0)	(4.1)	(4.1)
Reserves	80.0	78.5	78.2	96.3	79.4	76.5	69.9	65.4
Net Profits of the period	16.8	10.3	8.1	3.8	17.3	11.7	22.1	12.9
Third parties' equity	3.2	-	-	-	-	-	-	0.1
Shareholders' Equity	108.6	97.2	94.7	108.5	104.3	95.7	99.3	85.7
Total Liabilities and Shareholders' Equity	379.7	370.3	386.1	405.0	399.5	380.5	315.6	285.8
ROTE %	26%	22%	23%	26%	29%	38%	44%	27%
IFR %	499%	579%	538%	550%	489%	648%	587%	N/A

Disclaimer

This presentation shall be considered as confidential. It may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. The views presented herein, which do not purport to be comprehensive, are for discussion purposes only and are based upon publicly available information that is believed to be reliable, but which has not been verified by EQUITA Group S.p.A. or any subsidiary of EQUITA Group S.p.A. ("EQUITA").

Equita is not advocating any of the courses of action presented herein, which are being presented to solely illustrate a range of available options. No representation or warranty, express or implied, is or will be given by EQUITA or its directors, officers or employees as to the accuracy or completeness of this Presentation and, so far as permitted by law, no responsibility or liability is accepted for the accuracy or sufficiency thereof, or for any errors, omissions or misstatements, negligent or otherwise, relating thereto. In particular, but without limitation, (subject as aforesaid) no representation or warranty, express or implied, is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts and nothing in this Presentation is or should be relied on as a promise or representation as to the future. Neither EQUITA, nor any of its directors, officers and employees shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this Presentation or any other written or oral communication with the Recipient and any such liability is expressly disclaimed. This Presentation does not constitute an offer or invitation or a solicitation of any offer or invitation for the sale or purchase of securities or of any of the assets, business or undertaking described herein. In addition, it is not intended to form the basis of or act as an inducement to enter into any contract or investment activity, and should not be considered as a recommendation by Equita. In furnishing this Presentation, Equita does not undertake any obligation to provide any additional information or to update this Presentation or to correct any inaccuracies that may become apparent.

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