FinecoBank — Investor Presentation 2021

Nov 9, 2021

Alessandro Foti CEO and General Manager

FINECO. SIMPLIFYING BANKING.

Milan, November 9 th 2021

3Q21 Results

Disclaimer

• This Presentation may contain written and oral "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
• The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
• Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Lorena Pelliciari, in her capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects FinecoBank's documented results, financial accounts and accounting records.
• This Presentation has been prepared on a voluntary basis since the financial disclosure additional to the half-year and annual ones is no longer compulsory pursuant to law 25/2016 in application of Directive 2013/50/EU, in order to grant continuity with the previous quarterly presentations. FinecoBank is therefore not bound to prepare similar presentations in the future, unless where provided by law. Neither the Company nor any of its representatives, directors or employees shall be liable at any time in connection with this Presentation or any of its contents for any indirect or incidental damages including, but not limited to, loss of profits or loss of opportunity, or any other liability whatsoever which may arise in connection of any use and/or reliance placed on it.

Agenda

Next steps

Fineco UK

Key messages

Executive Summary

Successful growth story: becoming more a Platform than a Bank

• The Bank has entered a new dimension of growth driven by structural trends. Among the main consequences:
• continuing with the deleveraging of the Balance Sheet: boosting Fees and Commissions to increase revenues with a better mix
• new discontinuity in FAM, entering the second wave to take more control of the value chain to further boost Investing revenues and margins

Outcome: structurally higher profitability and capital light business model, allowing us to distribute increasing DPS and to invest more in our growth abroad

Record-high net profit in "a new normal world"

• 9M21 Net profit at 257mln, +4% y/y(1) beating the previous record high of 9M20, confirming the sustainability of a business model able to deliver consistent results in every market condition
• 9M21 Revenues at 597mln, +4% y/y(1) mainly supported by Investing (+25% y/y) thanks to volume effect and to the strong acceleration of AUM flows. Brokerage confirmed a structurally higher floor also in an environment characterized by much lower volatility compared to 2020
• Operating Costs well under control at -188mln, +5.2% y/y, excluding costs related to the acceleration of the growth of the business(2) . Yearly comparison also affected by 9M20 strict lockdown
• C/I ratio at 31.4%, confirming strong operating leverage as a key strength of the Bank

Strong capital position, already compliant with MREL

• 9M21 CET1 ratio at 18.4%,TCR at 29.3%, Leverage ratio at 4.04%
• Compliant with 2024 fully-loaded MREL requirement after the successful issuance of 500mln Senior Preferred, with a demand more than 4x

Accelerating commercial activity towards AUM

• Net sales in 9M21 at 7.9bn (+24% y/y), o/w AUM at 5.4bn (+107% y/y). TFA at 103.6bn with Asset under Management at 52.6 bn (+26% y/y) and the penetration of Guided products on Asset under Management at 75%
• Fineco Asset Management retail net sales at 3.0bn in 9M21 (+96% y/y) and TFA at 21.6bn.
• October: Strong net sales at 0.9bn (+22% y/y), o/w AUM 0.5bn (>3x y/y). Brokerage revenues estimated at ~16mln despite very low volatility (revenues ~42% higher vs average monthly revenues in 2017-2019 y/y and volatility lower than avg volatility in the same period)

(1) 2Q21 non recurring items: realignment of the intangible assets: 32 mln net; 9M20 non recurring items: Voluntary Scheme: 3Q20: -0.2 mln gross, -0.2 mln net; 1Q20 -1.2mln gross, -0.8mln net (2)Excluding costs strictly related to the growth of the business, mainly FAM (-2.7 mln y/y) and marketing related to UK (-0.6 mln y/y)

Facing a "new normal world": record high 9M Net Profit

Adj. Net Profit at 257.2mln, +4.4% y/y boosted by strong acceleration of Investing. The Bank has entered a new dimension of growth. C/I ratio at 31%, confirming our operating leverage.

(1) 2Q21 non recurring items: realignment of the intangible assets: 32 mln net; 9M20 non recurring items: Voluntary Scheme: 3Q20: -0.2 mln gross, -0.2 mln net; 1Q20 -1.2mln gross, -0.8mln net

(2) Adj. Cost/Income and Adj. RoE calculated net of non recurring items. ROE calculated as: annualized adj.net profit divided by average book equity for the period (excl. dividends for which distribution is expected and valuation reserves)

(3) Excluding costs strictly related to the growth of the business, mainly FAM (-2.7 mln y/y) and marketing related to UK (-0.6 mln y/y)

(4)Estimate (3Q21 includes -30.0 mln contribution to DGS)

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Net Financial Income flat y/y also thanks to a more dynamic Treasury management

(1) Other treasury activities include Security Lending (to take advantage of tiering) TLTRO and yield enhancement strategies (unsecured lending and collateral switch) (2) Financial investments include Government bonds, UC bonds, Covered bonds, Supranational and Agencies and other financial investments

(3) Other interest-earning assets include Leverage

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(4) NII gross margins: interest income related to financial investments, lending, leverage, security lending, other trading activities on interest-earning assets (5) Total yield: net financial income related to interest-earning assets

Boosting Fees & Commissions and Brokerage Trading Profit

9M21 Fees and commissions +13% y/y thanks to the positive contribution by all business areas. Brokerage confirming the structurally higher floor despite lower market volatility and volumes vs 9M20 and 2Q21

(1) Trading income does not include Profit from Treasury Management

(2) Adj. Trading Income excluding non recurring items: Voluntary Scheme (3Q20: -0.2 mln gross, -0.2 mln net; 1Q20: -1.2 mln gross, -0.8 mln net)

Our priority: accelerating on Investing

9M21 revenues increasing thanks to volume effect and strong acceleration in AUM net sales. Margins higher thanks to the operational efficiency given by Fineco Asset Management and a first sign of higher risk appetite by clients

Cost efficiency and operating leverage confirmed in our DNA

9M21 characterized by costs directly related to the strong acceleration of growth of the business experienced in the "new normal world". The yearly comparison affected by 9M20 strict lock-down (9M20 OAE lower vs 9M avg in the period 2010-2019)

(1) Excluding costs strictly related to the growth of the business in 9M21, mainly:

• Operating costs, FAM (-2.7mln y/y, o/w -2.4mln y/y related to Staff Expenses and -0,3mln y/y related to Non HR Cost) and marketing related to UK (-0.6 mln y/y).

High quality lending

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Offered exclusively to the existing base of clients, leveraging on our internal Big Data analytics

Cost of Risk on commercial loans (2) 7 bps 11 bps

• Cost of Risk well under control thanks to the constant improvement in the quality of the credit which is mainly secured and low risk.
• We confirm our strategy aims to build a safe lending portfolio, offering these products exclusively to our very well known base of clients, leveraging on a deep internal IT culture, powerful data warehouse system and Big Data analytics
• For FY21 we expect a CoR below 10 bps thanks to the high quality of our portfolio, even in a difficult context following Covid-19 outbreak and to the improvement of expected future macroeconomic scenario
• Less than 300 mortgages moratories have been granted until now, o/w only less than 100 are active. More details on the quality of our portfolio in the following slide, with a deep dive on the main products offered

Lending: solid growth for all our products

High quality portfolio and cautious approach

(1) Yield on mortgages net of amortized and hedging costs

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(2) Credit Lombard allows to change pledged assets without closing and re-opening the credit line, allowing more flexibility and efficiency with floor at zero (3) Expected yield are referred to the stock

Capital Ratios

Best in class capital position and low risk balance sheet

(1) Following declarations by ECB (18th June 2021) and Bank of Italy (30th June 2021) to temporarily allow banks until March 2022 to exclude central bank exposures from their leverage ratio in exceptional macroeconomic circumstances

Already compliant with MREL requirements after Senior Preferred issuance Strong and high quality order book for the Senior Preferred bond, with a demand more than 4x the offer. Fineco MREL

Rationale of the Senior Preferred issuance

On August 31st , 2021 Fineco announced MREL requirements received by Bank of Italy, which will be binding starting from January 1 st , 2024:

requirements, which were the lowest among the disclosed ones in the market, are met with 2 years in advance

1) Total Risk Exposure Amount at 20.83%

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• 2) Leverage Ratio Exposure at 5.18%, with an intermediate target at 4.11% (binding from January 1 st , 2022)
• Fineco MREL requirements are the lowest disclosed in the EU market thanks to its diversified and low risk business model and its high level of liquid Assets. For the same reason, regulators have not asked to issue a subordinated instrument

TFA breakdown

Successful shift towards high added value products thanks to strong productivity of the network

Net sales breakdown

High quality net sales growth with a better mix, on the wave of structural trends thanks to our diversified business model

PFA Network – total Net Sales, bn

Net sales organically driven key in our strategy of growth

The structure of recruiting is changing: more interest in the quality of the business model by PFAs

Increasing quality and productivity of the Network

Clients' profile and focus on Private Banking

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Agenda

Fineco Results

Fineco UK

Current environment is further enlarging our growth opportunities

Current situation is accelerating the structural trends reshaping our society…

DEMAND FOR ADVICE

DIGITALIZATION

Increasing participation in financial markets by Italians is building up a bridge among investing and brokerage

Society structurally moving towards a more digitalized world: a way of non-return

DISRUPTION IN TRADITIONAL BANKS

Traditional banks not ready for the new paradigma: flight-to-quality is gaining momentum

…and strengthening our long term growth opportunities

Strengths of our business model: quality, efficiency, innovation

Fintech DNA: we were born already digital

Cyborg advisory: our PFAs already used to assist clients in a digital world

• Robust Net sales with good asset mix
• Boost in Investing supported by FAM growth
• Structurally higher Brokerage
• Acceleration in high-end clients' acquisition
• Decreasing Cost/Income

2021 Guidance and outlook going forward

Banking:

• Net financial income (net interest income and Profit from Treasury management): we expect for FY21 and FY22 a net financial income to stabilize at the levels of 2020 thanks to the combination of the deleveraging of the Balance Sheet and the new initiatives in place
• Banking fees: for 2021 above 45mln thanks to the smart repricing launched in 2020 and to the additional fees from the new pricing on new current accounts. Going forward they are expected to keep on growing thanks to the increase of the client base and to repricing actions

Investing:

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• For 2021 revenues are expected to increase around 25% y/y with higher margins
• Going forward we expect a strong acceleration in revenues and margins thanks to:
• 1) A further increase in our network productivity leading to higher volumes (AUM net sales expected at around ~6bn per year)
• 2) The implementation of the strategic discontinuity in Fineco Asset Management, which is going to increase its penetration in Fineco AUM, with retail net sales expected at around ~6bn per year

This is expected to generate a progressive increase of Fineco management fees margins after-tax up to ~55bps in 2024 (margins pre-tax ~75bps)

Brokerage: countercyclical business, it is expected to remain strong with a floor - in relative terms with respect to volatility - definitely higher than in the past

Operating costs:

• For 2021 expected to grow around 5% y/y. We expect about 5 million of additional costs y/y (o/w +2/2.5 mln in 4Q) related to FAM as we are introducing the strategic discontinuity to improve the efficiency of the Investing value chain
• Going forward we expect the growth of running costs to stabilize around 5%, not including the additional costs related to the expansion abroad and to FAM. On FAM, in 2022 we expect around 6 mln additional costs related to the strategic discontinuity
• Cost/Income: we confirm our guidance on a continuously declining cost/income in the long-run thanks to the scalability of our platform and to the strong operating gearing we have (excluding expansion abroad)
• Systemic charges: confirmed at around ~-38mln of DGS+SRF in provisions for risk and charges, already booked in 9M21. The more we will be effective in our deleveraging activity, the more we can decrease our systemic charges
• Tax rate: stable y/y in 2021. Going forward we expect a reduction of around 1p.p. per year (1)
• Capital Ratios: CET1 floor at 17%, Leverage Ratio very well under control and in a range 3.5%-4.0% (for details see slide 55 in Annex)
• DPS: going forward we expect a constantly increasing dividend per share
• Cost of Risk: below 10 basis points in 2021 thanks to the quality of our portfolio, in a range between 10 and 15 basis points in 2022
• Net sales: robust, high quality and with a mix mainly skewed towards Asset under Management thanks to the new initiatives we are undertaking (see next slides)

(1) Net of potential new taxation or regulation, and depending on the relative weight of PBT generated in Italy or by FAM

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1

2

Focus on deleveraging

Initiatives to keep under control our Balance Sheet and improve our quality revenues mix, by taking advantage from the acceleration of structural trends and thanks to our FinTech DNA

INITIATIVES TO KEEP UNDER CONTROL OUR BALANCE SHEET

4

STRONG COMMERCIAL FOCUS ON AUM:

targeting only AUM net sales and solutions with a strong RISK MANAGEMENT. FAM already best-positioned thanks to the hightransparency and daily look-through on its solutions

ROBUST ACCELERATION IN PFAs PRODUCTIVITY through:

• New software developments to improve PFAs productivity in transforming deposits in AUM leveraging on Big Data Analytics capabilities.
• Coming soon: sophisticated marketing campaigning tool

WIDER PRODUCT RANGE TO FULLY CATCH THE WHOLE SPECTRUM OF CLIENTS' NEEDS ALSO THANKS TO FAM 3

• Decumulation products key to move clients from liquidity towards AUM: our wide gamma of FAM Target (~40 decumulation vehicles ranging from thematic funds, sustainability, emerging markets…) fits virtually all investment needs
• Pension funds for risk-adverse clients
• Distribution of third-parties savings accounts already live to lower the amount of liquidity held by clients with no intention to invest and generate revenues without increasing the Balance Sheet. We are progressively giving access to our client base, and this platform can be considered a perfect example of open banking

IMPROVE THE QUALITY OF OUR CLIENT BASE:

• More selective client acquisition through a new pricing on new current accounts that are priced € 6.95 per month with the possibility of a full bonus on the fee according to their activity with the Bank
• We will increase our efforts to reduce liquidity leveraging on Big Data Analytics

Banking: Further combining Treasury and Business to boost growth

INDUSTRIAL ACTIONS TO MANAGE LIQUIDITY

MORE DYNAMIC TREASURY MANAGEMENT:

• yield enhancement strategies (unsecured lending, collateral switch)
• full ADVANTAGE OF ECB's TIERING AND TLTRO

PROFIT FROM TREASURY MANAGEMENT: related to the rebalance of the Asset Liability Management within the deleveraging of the Balance Sheets. The more the Bank will move in that direction, and the more we will slow down the growth of financial investments.

INCREASING LENDING without changing our cautious and conservative approach, as low interest rate environment increases the appetite for lending products

• NEW PLATFORM TO DISTRIBUTE THIRD PARTIES SAVINGS ACCOUNTS leveraging on our FinTech DNA
  • SMART REPRICING ON CURRENT ACCOUNTS AND NEW PRICING ON NEW CURRENT ACCOUNTS: given the acceleration of flight to quality towards our Bank, we can afford to be more selective in our base of clients
  • NEW PLATFORM FOR TAX CREDIT (Ecobonus and Superbonus): we are very active within the framework of the Law Decree no.34/2020, allowing homeowners to have a tax credit up to 110% for a list of interventions on their houses (i.e. increasing energy efficiency of buildings, reducing seismic risk, etc.): we have a volume potential in a range between 1.5-2bn

BANKING

Discontinuity on our Investing business

Expected acceleration of revenues and margins thanks to higher AUM volumes and to the strategic discontinuity in FAM to take more control of the value chain, improving operational efficiency

STRONG VOLUME EFFECT	FAM OPERATIONAL EFFICIENCY
 INCREASING PFAs PRODUCTIVITY thanks to our cyborg-advisory approach and to our technology  ROBUST AUM NET SALES as we are in the sweet spot to capture the acceleration of structural trends already in place  NEW PFA INCENTIVE SCHEME based on inflows in:  Asset Under Management  quality solutions with a strong focus on RISK MANAGEMENT  Clients starting to increase their RISK APPETITE	 The internalization of the value chain will allow FAM to progressively and structurally lower the costs of third parties, creating more value (i.e. lower costs of mandate, new advisory services, new flagship product range fully managed in-house)  FAM is core for extracting additional value (on fund administration costs, custodian, etc)  FAM margins contribution expected to grow with the increase of FAM volumes as institutional products can be used as underlying of Investing solutions  Widening equity strategies offer due to the increasing demand by customers

INVESTING

FAM: delivering on the strategic discontinuity

Key to sustain AUM margins thanks to its strong operating leverage and to a more efficient value chain

3.0

9M21

Other Fineco AUM net sales FAM retail class net sales

9M20 1.5 2.6

FAM is strongly and consistently contributing to Fineco's AuM net sales in every market condition thanks to its modern and innovative multimanager solutions

INVESTING

• In 2021 FAM will focus on further widening its product offer by adding new solutions focused on equity and sustainability
• After the strong commercial results of its Target China and ESG Target Global Coupon strategies, FAM is launching the Global Inflation Responsive: a new product combining a coupon offer and a gradual exposure to strategies focused on inflation
• Widening sustainable offer through the launch of new investment solutions under SFDR art.8 and art.9

Brokerage: higher floor as the structure of the market is changing

BROKERAGE

Increased interest in financial markets by clients and big jump into a more digitalized society

Brokerage: enlargement of client base and increased market share BROKERAGE

Client base growth mainly driven by "Active investors" starting to use brokerage platform and "sleeping" clients back on the market. New clients are coming from traditional banks

Active investors: less than 20 trades per month

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Agenda

Fineco Results

Next steps

Key messages

Fineco UK: our quality one-stop-solution proves to work

Strong acceleration in our customer acquisition and further improving revenues mix

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Fineco UK: Investing in the spotlight

ISA accounts offer, already 1,300+ subscriptions. Next step: improving our user experience

Agenda

Fineco Results

Next steps

Fineco UK

Long term sustainability at the heart of Fineco business model (1/3)

We are a looking-forward organization playing for the long-run and able to generate a positive impact for all our stakeholders and the society as a whole

Our corporate purpose: to offer clients a quality and one-stop-solution with a fair pricing leveraging on our 3 pillars

TRANSPARENCY

Fairness and respect for all our stakeholders

• FAM as a champion of ESG: PERFORMANCE FEES FREE trademark
• FAIR PRICING
• LOW UPFRONT FEES (only ~3% of Investing fees)

EFFICIENCY

Fintech DNA: strong focus on IT & Operations, more flexibility, less costs

• Delivering BEST-IN-CLASS CUSTOMER EXPERIENCE
• SHARING FAM BENEFITS WITH CLIENTS: better quality and timely products with lower TER

INNOVATION Quality offer for highly SATISFIED CLIENTS

NO short-term AGGRESSIVE COMMERCIAL OFFERS and ZERO REMUNERATION on current accounts

Focus on ORGANIC GROWTH

Long term sustainability at the heart of Fineco business model (2/3)

We are a looking-forward organization playing for the long-run and able to generate a positive impact for all our stakeholders and the society as a whole

Sustainable since inception

• MARKET FRIENDLY CORPORATE GOVERANCE:
  • Up to 3 lists for Board renewal
  • 10 independent Board members out of 11, o/w 6 women
• Ramping up the GOVERNANCE OF SUSTAINABILITY:
  • Sustainability Committee at Board and Managerial level
  • Sustainability Team within CFO Department

FOCUS on Cyber-Security and ESG risks leveraging on FINTECH DNA

Broad ESG product offer: both on Investing (i.e. ~60% of funds have ESG rating Morningstar) and Lending ("Green mortgages", Ecobonus and Sismabonus). FAM has classified 40 funds under art. 8 of SFDR regulation

• FinecoBank is signatory of UN Global Compact and UN PRB (UN Principles for Responsible Banking)
• Fineco AM is signatory of UN PRI (UN Principles for Responsible Investing)
• In 2020 AGM, 86% voted for the outgoing Board list proposal
• In 2021 AGM, 97% voted for 2021 remuneration policy

Long term sustainability at the heart of Fineco business model (3/3)

We are a looking-forward organization playing for the long-run and able to generate a positive impact for all our stakeholders and the society as a whole

Fineco as a profitable FinTech Bank: ICT a key business driver

Leveraging on a deep-rooted internal know-how to expand platform scalability and operating gearing

Healthy and sustainable growth with a long term horizon

(1) Figures adjusted by non recurring items and Net Profit adjusted net of systemic charges: (FY15: -3.1mln net, FY16: -7.1mln net, FY17: -7.1mln net, FY18: -9.6mln net, FY19: -12.1 mln net, 1Q20: -0.3mln gross, -0.2mln net, 2Q20: -0.7mln gross, -0.4mln net; 3Q20:

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Safe Balance Sheet: simple, highly liquid

• Investment strategy announced during FY17 results unchanged: UC bonds runoffs, blend of government bonds diversified across countries, covered bonds, supranational and agencies
• 99.9% not exposed to volatility with no impact in our P&L and BS by the widening of spreads. HTC classification since November 2016
• Avg maturity unchanged at ~ 5 years

High-quality lending growth

• Lending offered exclusively to our well-known base of clients
• Low-risk: CoR at 7bps, cautious approach on mortgages (LTV ~50%, avg maturity 18 yrs)
• Strong competitive advantage leveraging on Big Data Analytics and internal IT culture (resulting in unmatched user experience and high customer satisfaction), continuous in-house innovation (i.e. look-through implementation with significant benefits on CET1 ratio), ownership and control of critical infrastructure

(2) Following declarations by ECB (18th June 2021) and Bank of Italy (30th June 2021) to temporarily allow banks to exclude central bank exposures from their leverage ratio in exceptional macroeconomic circumstances, starting from June 21 we temporary excluded

exposures towards Central Banks from the total exposures (according to art. 429a – CRR). Without this exclusion exposures would be: 3.80%

⁽¹⁾ Due from banks includes 1.8bn cash deposited at Bank of Italy as of Sept. 2021

Total assets: 99.9% not exposed to volatility in the Balance Sheet

Out of 33.5bn, only 0.04bn of assets at fair value with very limited impacts on Equity reserve

(1) Due from banks includes 1.8bn cash deposited at Bank of Italy as of Sept.21

(2) Other refers to tangible and intangible assets, derivatives and other assets

(3) 19.8bn equal to 18.8bn nominal value, o/w Italy 6.3bn nominal value

(4) Other: Austria, Belgium, Germany, Portugal, United Kingdom, Switzerland, Chile, Israel, Saudi Arabia, China, Iceland, Latvia

Agenda

Fineco Results

Next steps

Fineco UK

Key messages

Focus on product areas

Revenues by Product Area

Well diversified stream of revenues allow the bank to successfully face any market environment

Managerial Data. Revenues attributable to single each product area, generated by products / services offered to customers according to the link between products and product area. Banking includes revenues generated by deposits, treasury and credit products. Investing includes revenues generated by asset under management products; Brokerage includes revenues from trading activity.

Banking

Sound performance and relentless clients' acquisition, thanks to high quality services and best-in-class customer satisfaction

Managerial Data

Brokerage

Structurally higher revenues floor despite lower market volatility and volumes vs 9M20 and 2Q21

Managerial Data

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(1) Volatility calculated as avg weekly volatility of BUND, BTP, SP, EUROSTOXX, MINIDAX, DAX, FIB, MINIFIB, NASDAQ, DOW weighted on volumes related to futures traded by our clients

Investing

Increasing revenues y/y thanks to a successful strategy based on our cyborg advisory approach. Very limited upfront fees, representing only ~3% of Investing fees

Annex

P&L pro-forma(1)

P&L pro-forma(1)
mln	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	3Q21	9M20	9M21
Net financial income	72.0	75.1	68.6	64.1	279.7	75.1	72.8	69.2	215.6	217.1
o/w Net Interest Income	68.2	70.1	68.6	63.9	270.7	61.8	62.5	61.8	206.9	186.1
o/w Profit from treasury management	3.8	5.0	-0.1	0.3	9.0	13.2	10.3	7.4	8.7	31.0
Net commissions	95.9	98.6	92.3	92.6	379.4	108.1	106.3	110.1	286.8	324.4
Trading profit	22.6	25.1	20.3	18.8	86.8	23.9	16.7	15.6	67.9	56.2
Other expenses/income	0.6	0.8	0.2	0.4	1.9	0.5	0.1	-1.5	1.6	-0.8
Total revenues	191.0	199.6	181.3	175.9	747.8	207.6	195.9	193.5	571.9	596.9
Staff expenses	-24.0	-24.9	-24.6	-26.0	-99.5	-26.2	-26.7	-27.4	-73.5	-80.3
Other admin.exp. net of recoveries	-27.4	-28.5	-27.8	-34.4	-118.0	-30.6	-29.9	-27.6	-83.7	-88.2
D&A	-6.1	-6.2	-6.4	-6.8	-25.4	-6.3	-6.4	-6.4	-18.6	-19.1
Operating expenses	-57.5	-59.6	-58.8	-67.2	-243.0	-63.1	-63.0	-61.5	-175.9	-187.6
Gross operating profit	133.6	140.0	122.4	108.7	504.8	144.4	132.9	132.0	396.0	409.4
Provisions	-1.1	-6.5	-32.0	5.5	-34.1	-8.2	-5.8	-31.1	-39.6	-45.1
o/w Systemic charges	-0.3	-0.7	-28.0	2.1	-26.8	-5.8	-1.9	-30.0	-28.9	-37.7
LLP	-1.0	-2.7	0.1	0.2	-3.3	-0.5	-1.2	-0.4	-3.5	-2.0
Profit from investments	-0.1	-3.7	-0.2	-2.3	-6.3	-0.6	1.8	0.3	-4.0	1.5
Profit before taxes	131.4	127.1	90.4	112.2	461.1	135.2	127.7	100.9	348.9	363.8
Income taxes	-40.0	-38.3	-25.3	-34.0	-137.5	-40.4	-5.8	-28.3	-103.6	-74.5
Net profit for the period	91.4	88.7	65.2	78.2	323.6	94.7	121.9	72.6	245.3	289.3
Net profit adjusted (2)	92.2	88.7	65.3	78.2	324.5	94.7	89.9	72.6	246.3	257.2
Non recurring items (mln, gross)	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	3Q21	9M20	9M21
(3) Extraord systemic charges (Trading Profit)	-1.2	0.0	-0.2	0.0	-1.4	0.0	0.0	0.0	-1.4	0.0
Realignment of Intangible Assets	0.0	0.0	0.0	0.0	0.0	0.0	32.0	0.0	0.0	32.0
Total	-1.2	0.0	-0.2	0.0	-1.4	0.0	32.0	0.0	-1.4	32.0

45 (1) P&L pro-forma includes «Profits from treasury management» within «Net financial income» and excludes it from «Trading Profit» (2) Net of non recurring items (3) Voluntary Scheme valuation

P&L net of non recurring items

mln	1Q20 Adj. (1)	2Q20 Adj. (1)	3Q20 Adj. (1)	4Q20 Adj. (1)	FY20 Adj. (1)	1Q21 Adj. (1)	2Q21 Adj. (1)	3Q21 Adj. (1)	9M20 Adj. (1)	9M21 Adj. (1)
Net financial income	72.0	75.1	68.6	64.1	279.7	75.1	72.8	69.2	215.6	217.1
o/w Net interest income	68.2	70.1	68.6	63.9	270.7	61.8	62.5	61.8	206.9	186.1
o/w Profit from treasury	3.8	5.0	-0.1	0.3	9.0	13.2	10.3	7.4	8.7	31.0
Net commissions	95.9	98.6	92.3	92.6	379.4	108.1	106.3	110.1	286.8	324.4
Trading profit	23.8	25.1	20.5	18.8	88.2	23.9	16.7	15.6	69.4	56.2
Other expenses/income	0.6	0.8	0.2	0.4	1.9	0.5	0.1	-1.5	1.6	-0.8
Total revenues	192.2	199.6	181.5	175.9	749.2	207.6	195.9	193.5	573.3	596.9
Staff expenses	-24.0	-24.9	-24.6	-26.0	-99.5	-26.2	-26.7	-27.4	-73.5	-80.3
Other admin.expenses	-27.4	-28.5	-27.8	-34.3	-118.0	-30.6	-29.9	-27.6	-83.7	-88.2
D&A	-6.1	-6.2	-6.4	-6.8	-25.4	-6.3	-6.4	-6.4	-18.6	-19.1
Operating expenses	-57.5	-59.6	-58.8	-67.2	-243.0	-63.1	-63.0	-61.5	-175.9	-187.6
Gross operating profit	134.8	140.0	122.7	108.7	506.2	144.5	132.9	132.0	397.5	409.4
Provisions	-1.1	-6.5	-32.0	5.5	-34.1	-8.2	-5.8	-31.1	-39.6	-45.1
o/w Systemic charges	-0.3	-0.7	-28.0	2.1	-26.8	-5.8	-1.9	-30.0	-28.9	-37.7
LLP	-1.0	-2.7	0.1	0.2	-3.3	-0.5	-1.2	-0.4	-3.5	-2.0
Profit from investments	-0.1	-3.7	-0.2	-2.3	-6.3	-0.6	1.8	0.3	-4.0	1.5
Profit before taxes	132.6	127.1	90.7	112.2	462.5	135.2	127.7	100.9	350.3	363.8
Income taxes	-40.4	-38.3	-25.3	-34.0	-138.0	-40.4	-37.8	-28.3	-104.0	-106.5
Net profit adjusted (1)	92.2	88.7	65.3	78.2	324.5	94.7	89.9	72.6	246.3	257.2

P&L pro-forma(1) net of non recurring items

46 (1) Net of non recurring items (see page 45 for details)

9M21 P&L FinecoBank and Fineco Asset Management

mln	Fineco Asset	FinecoBank	FinecoBank
	Management	Individual	Consolidated
Net financial income	-0.2	217.3	217.1
Dividends	0.0	13.7
Net commissions	65.3	259.1	324.4
Trading profit	0.0	56.2	56.2
Other expenses/income	-0.1	-0.7	-0.8
Total revenues	65.1	545.7	596.9
Staff expenses	-5.6	-74.7	-80.3
Other admin.exp. net of recoveries	-3.3	-85.0	-88.2
D&A	-0.2	-18.9	-19.1
Operating expenses	-9.0	-178.6	-187.6
Gross operating profit	56.1	367.0	409.4
Provisions	0.0	-45.1	-45.1
LLP	0.0	-2.0	-2.0
Profit on Investments	0.0	1.5	1.5
Profit before taxes	56.1	321.4	363.8
Income taxes	-7.0	-67.5	-74.5
Net profit for the period	49.0	253.9	289.3

Details on Net Interest Income

mln	1Q20	Volumes & Margins	2Q20	Volumes & Margins	3Q20	Volumes & Margins	4Q20	Volumes & Margins	FY20	Volumes & Margins	1Q21	Volumes & Margins	2Q21	Volumes & Margins	3Q21	Volumes & Margins	9M20	Volumes & Margins	9M21	Volumes & Margins
Financial Investments Net Margin	54.8	22,543 0.98%	56.3	22,676 1.00%	53.0	22,491 0.94%	49.0	23,334 0.84%	213.1	22,761 0.94%	44.6	24,416 0.74%	43.2	23,977 0.72%	41.3	23,824 0.69%	164.1	22,570 0.97%	129.1	24,073 0.72%
Gross margin	56.8	1.01%	57.1	1.01%	53.1	0.94%	49.1	0.84%	216.1	0.95%	44.8	0.74%	43.2	0.72%	41.4	0.69%	167.0	0.99%	129.3	0.72%
(1) Treasury activities Net Margin	0.9	703 (1) 0.50%	2.1	1,916 0.44%	2.4	2,114 0.45%	2.5	2,103 0.47%	7.9	1,709 0.46%	3.9	2,791 0.57%	4.7	3,140 0.59%	4.3	2,646 0.64%	5.4	1,578 0.46%	12.9	2,859 0.60%
Leverage - Long	2.9	137	2.4	117	3.1	150	2.8	138	11.1	136	3.4	171	3.9	199	4.3	214	8.3	135	11.7	194
Net Margin		8.42%		8.13%		8.13%		8.10%		8.20%		8.12%		7.92%		8.00%		8.23%		8.01%
Tax Credit Net Margin	0.0	0 0.00%	0.0	0 0.00%	0.0	0 0.00%	0.0	0 0.00%	0.0	0 0.00%	0.0	1 0.00%	0.3	42 2.50%	0.5	95 2.15%	0.0	0 0.00%	0.8	46 2.26%
Lending Net Margin	11.0	3,094 1.42%	11.4	3,393 1.35%	11.6	3,582 1.28%	11.1	3,670 1.20%	45.0	3,435 1.31%	10.8	3,805 1.15%	11.4	4,141 1.10%	12.3	4,583 1.07%	33.9	3,356 1.35%	34.5	4,176 1.10%
o/w Current accounts	3.4	1,316	3.6	1,375	3.6	1,453	3.7	1,527	14.3	1,418	3.6	1,632	3.9	1,748	4.1	1,866	10.6	1,381	11.6	1,748
Net Margin		1.05%		1.04%		0.99%		0.97%		1.01%		0.90%		0.90%		0.87%		1.03%		0.89%
o/w Cards	1.2	43	1.1	40	1.1	39	1.1	38	4.5	40	1.0	36	1.0	34	1.0	35	3.4	40	3.0	35
Net Margin		11.41%		11.40%		11.43%		11.45%		11.42%		11.40%		11.36%		11.43%		11.41%		11.40%
o/w Personal loans	4.5	462	4.4	448	4.2	437	4.2	439	17.4	447	4.2	447	4.3	466	4.4	481	13.1	449	13.0	465
Net Margin		3.93%		3.93%		3.86%		3.82%		3.88%		3.83%		3.72%		3.64%		3.90%		3.73%
o/w Mortgages	1.8	1,273	2.3	1,530	2.6	1,653	2.1	1,666	8.8	1,530	2.0	1,690	2.1	1,893	2.8	2,202	6.7	1,485	6.9	1,928
Net Margin		0.57%		0.61%		0.63%		0.49%		0.57%		0.47%		0.45%		0.51%		0.60%		0.48%
Other	-1.3		-2.1		-1.4		-1.5		-6.3		-0.9		-0.9		-0.9		-4.8		-2.7
(2) Total	68.2		70.1		68.6		63.9		270.7		61.8		62.5		61.8		206.9		186.1
Gross Margin Cost of Deposits		1.09% -0.03%		1.04% -0.01%		0.99% 0.00%		0.89% 0.00%		1.00% -0.01%		0.82% 0.00%		0.81% 0.00%		0.79% 0.00%		1.04% -0.01%		0.81% 0.00%

Volumes and margins: average of the period

48

Net margin calculated on real interest income and expenses

Some 2Q21 data slightly changed due to minor adjustments

(1) Treasury activities: Unsecured lending, collateral switch, tiering, TLTRO, other repos (moved from «Other» to «Treasury acitivites»).

(2) Other includes mainly marketing costs. 2020 figures recasted (NII from other repos moved from «Other» to «Treasury Activities»): 1Q20 0.0mln, 2Q20 2Q20 0.0mln, 3Q20 -0.1mln, 4Q20 -0.2mln, FY20 -0.4mln

UniCredit bonds underwritten

	ISIN	Currency	Amount (€ m)	Maturity	Indexation	Spread
1	IT0005010225	Euro	382.5	18-Oct-21	Euribor 1m	2.60%
2	IT0005040099	Euro	100.0	24-Jan-22	Euribor 1m	1.46%
3	IT0005057994	Euro	200.0	11-Apr-22	Euribor 1m	1.43%
4	IT0005083743	Euro	300.0	28-Jan-22	Euribor 1m	1.25%
5	IT0005114688	Euro	180.0	19-May-22	Euribor 1m	1.19%
6	IT0005120347	Euro	700.0	27-Jun-22	Euribor 1m	1.58%
7	IT0005144065	Euro	450.0	14-Nov-22	Euribor 3m	1.40%
8	IT0005144073	Euro	350.0	15-Nov-21	Euribor 3m	1.29%
9	IT0005158412	Euro		250.0 23-Dec-22	Euribor 3m	1.47%
10	IT0005163180	Euro	600.0	11-Feb-23	Euribor 3m	1.97%
11	IT0005175135	Euro	100.0	24-Mar-23	Euribor 3m	1.58%
12	IT0005217606	Euro	350.0	11-Oct-23	Euribor 3m	1.65%
13	IT0005241317	Euro	622.5	2-Feb-24	Euribor 3m	1.52%
	Total	Euro	4,585.0		Euribor 1m	1.63%

Financial Investments

Further improvements for a diversified asset side

(1) Sovereign Supranational and Agencies

50

(2) Avg 9M21 "Other" includes: 1.3bn France, 1.0bn Ireland, 0.8bn USA, 0.6bn Belgium, 0.5bn Austria, 0.4bn Portugal, 0.2bn Israel, 0.2bn Chile, 0.2bn Saudi Arabia, 0.1bn Germany, 0.1bn China, 0.1bn other (UK, Switzerland, Iceland, Latvia) (3) Calculated on nominal value as of September 30th 2021

Details on Net Commissions

Net commissions by product area
mln	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	3Q21	9M20	9M21
Banking	9.5	11.1	10.4	3.2	34.2	10.8	11.9	12.9	31.0	35.6
Brokerage	36.3	38.3	27.1	31.7	133.5	40.2	29.5	26.0	101.8	95.6
o/w
Equity	30.0	31.0	21.7	26.5	109.2	36.1	24.6	22.5	82.7	83.3
Bond	1.0	3.8	2.2	1.9	9.0	0.8	2.3	0.4	7.0	3.5
Derivatives	4.5	3.7	2.6	2.7	13.5	2.9	2.2	2.3	10.8	7.4
Other commissions	0.7	-0.1	0.7	0.6	1.8	0.4	0.4	0.8	1.3	1.6
Investing	50.3	49.4	54.9	57.8	212.4	57.2	65.0	71.4	154.6	193.6
o/w
Placement fees	1.7	1.4	1.5	1.8	6.3	2.2	1.7	1.7	4.5	5.6
Management fees	61.9	58.9	64.2	67.5	252.5	72.5	78.4	85.0	185.0	235.9
to PFA's: incentives	-4.0	-4.0	-4.4	-6.8	-19.2	-6.2	-6.7	-7.8	-12.4	-20.7
to PFA's: LTI	-0.2	-0.7	-0.7	-0.6	-2.3	-0.6	-0.9	-0.8	-1.6	-2.4
Other PFA costs	-9.1	-6.1	-5.6	-5.8	-26.6	-10.7	-8.1	-6.7	-20.8	-25.5
Other commissions	0.0	0.0	0.0	1.6	1.6	0.0	0.6	0.0	0.0	0.6
Other	-0.2	-0.2	-0.2	-0.2	-0.8	-0.1	-0.1	-0.2	-0.6	-0.4
Total	95.9	98.6	92.3	92.6	379.4	108.1	106.3	110.1	286.8	324.4

Revenues breakdown by Product Area

E-MARKET SDIR
CERTIFIED

mln	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	3Q21	9M20	9M21
Net financial income	70.5	74.8	66.9	62.8	275.0	72.6	69.8	65.9	212.1	208.2
o/w Net interest income	66.6	69.8	67.0	62.6	266.0	59.3	59.5	58.4	203.4	177.2
o/w Profit from Treasury Management	3.8	5.0	-0.1	0.3	9.0	13.2	10.3	7.4	8.7	31.0
Net commissions	9.5	11.1	10.4	3.2	34.2	10.8	11.9	12.9	31.0	35.6
Trading profit	-0.3	-0.6	0.3	0.3	-0.3	1.4	0.1	0.3	-0.5	1.8
Other	0.2	0.3	-0.3	0.4	0.6	0.1	0.1	0.1	0.2	0.3
Total Banking	79.9	85.7	77.2	66.7	309.5	84.9	81.9	79.1	242.8	245.9
Net interest income	3.0	2.5	3.1	2.9	11.5	3.5	4.0	4.4	8.6	12.0
Net commissions	36.3	38.3	27.1	31.7	133.5	40.2	29.5	26.0	101.8	95.6
Trading profit	25.1	24.2	20.1	18.0	87.4	22.0	15.9	15.5	69.3	53.4
Other	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Total Brokerage	64.4	65.0	50.4	52.6	232.4	65.7	49.4	45.9	179.7	161.0
Net interest income	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net commissions	50.3	49.4	54.9	57.8	212.4	57.2	65.0	71.4	154.6	193.6
Trading profit	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Other	0.1	-0.2	0.2	-0.2	-0.1	0.0	0.0	-0.1	0.1	-0.1
Total Investing	50.4	49.2	55.1	57.6	212.3	57.2	65.0	71.3	154.7	193.6

P&L by product area

Breakdown Total Financial Assets

mln	Mar.20	Jun.20	Sep.20	Dec.20	Mar.21	Jun.21	Sep.21
AUM	35,516	40,083	41,744	45,381	48,018	51,399	52,648
o/w Funds and Sicav	24,122	27,657	28,929	31,578	33,271	35,699	36,233
o/w Insurance	9,961	10,676	11,020	11,819	12,659	13,448	14,122
o/w GPM	127	169	185	209	238	282	294
o/w AuC + deposits under advisory	1,307	1,580	1,610	1,776	1,850	1,970	1,998
o/w in Advice	516	550	554	561	572	596	603
o/w in Plus	792	1,030	1,056	1,215	1,278	1,374	1,395
AUC	13,485	16,486	16,821	18,314	20,347	21,760	22,038
o/w Equity	8,308	10,565	11,006	12,614	14,503	15,695	16,054
o/w Bond	5,147	5,878	5,766	5,637	5,772	5,993	5,893
o/w Other	30	43	49	63	72	72	90
Direct Deposits	26,925	26,077	26,432	28,014	28,687	28,273	28,867
o/w Sight	26,924	26,077	26,432	28,014	28,687	28,273	28,867
o/w Term	1	1	0	0	0	0	0
Total	75,927	82,646	84,997	91,709	97,052	101,431	103,552
o/w Guided Products & Services	25,486	28,984	30,331	33,420	35,381	38,531	39,721
o/w TFA FAM retail	7,626	8,920	9,465	10,542	11,465	13,215	13,929
o/w TFA Private Banking	28,844	33,024	34,438	38,614	41,844	44,763	45,924

AuC and Deposits under advisory have been reclassified within AuM in order to have a better representation of the advisory nature of Advice and Plus services

Balance Sheet

54

mln	Mar.20	Jun.20	Sep.20	Dec.20	Mar.21	Jun.21	Sep.21
(1) Due from Banks	1,801	1,633	1,761	2,541	1,902	2,253	2,429
Customer Loans	3,741	4,204	4,320	4,528	4,639	5,269	5,624
Financial Assets	23,414	22,961	22,988	23,957	25,398	24,648	24,446
Tangible and Intangible Assets	280	280	278	281	277	281	279
Derivatives	76	76	76	74	84	85	92
Tax credit acquired	0	0	0	0	9	75	394
Other Assets	207	259	298	374	279	293	271
Total Assets	29,519	29,412	29,721	31,755	32,588	32,905	33,534
Customer Deposits	27,202	27,021	27,297	28,360	29,102	29,141	29,805
Due to Banks	331	113	105	1,065	1,149	1,173	1,169
Derivatives	144	207	212	232	140	119	91
Funds and other Liabilities	365	515	487	411	413	575	501
Equity	1,477	1,556	1,620	1,687	1,783	1,897	1,969
Total Liabilities and Equity	29,519	29,412	29,721	31,755	32,588	32,905	33,534

Leverage Ratio Sensitivity

OUR PRIORITY

Focus on deleveraging our Balance Sheet to keep under control the growth of deposits and improve our quality revenues mix. Thanks to our new initiatives, which are not yet at full speed, at the same time we can:

• 1) sustain our growth
• 2) distribute a growing dividend per share
• 3) keep our Leverage Ratio comfortably above the regulatory requirements and within our guidance (in a range 3.5%-4.0%)

Leverage Ratio comfortably under control

	Tier 1 Capital (mln)
		70	80	90	100	110	120	130	140	150	160	170	180	190	200
	-500	4.05%	4.08%	4.11%	4.13%	4.16%	4.19%	4.22%	4.24%	4.27%	4.30%	4.32%	4.35%	4.38%	4.41%
	0	3.99%	4.02%	4.05%	4.07%	4.10%	4.13%	4.16%	4.18%	4.21%	4.24%	4.26%	4.29%	4.32%	4.34%
	500	3.94%	3.96%	3.99%	4.02%	4.04%	4.07%	4.10%	4.12%	4.15%	4.18%	4.20%	4.23%	4.26%	4.28%
	1,000	3.88%	3.91%	3.94%	3.96%	3.99%	4.01%	4.04%	4.07%	4.09%	4.12%	4.15%	4.17%	4.20%	4.23%
	1,500	3.83%	3.86%	3.88%	3.91%	3.93%	3.96%	3.99%	4.01%	4.04%	4.06%	4.09%	4.12%	4.14%	4.17%
n)	2,000	3.78%	3.80%	3.83%	3.86%	3.88%	3.91%	3.93%	3.96%	3.98%	4.01%	4.04%	4.06%	4.09%	4.11%
ml	2,500	3.73%	3.75%	3.78%	3.81%	3.83%	3.86%	3.88%	3.91%	3.93%	3.96%	3.98%	4.01%	4.03%	4.06%
s (	3,000	3.68%	3.71%	3.73%	3.76%	3.78%	3.81%	3.83%	3.86%	3.88%	3.91%	3.93%	3.96%	3.98%	4.01%
e	4,000	3.59%	3.61%	3.64%	3.66%	3.68%	3.71%	3.73%	3.76%	3.78%	3.81%	3.83%	3.86%	3.88%	3.90%
ur s	5,000	3.50%	3.52%	3.55%	3.57%	3.59%	3.62%	3.64%	3.67%	3.69%	3.71%	3.74%	3.76%	3.78%	3.81%
o p	6,000	3.41%	3.44%	3.46%	3.48%	3.51%	3.53%	3.55%	3.58%	3.60%	3.62%	3.65%	3.67%	3.69%	3.72%
x	7,000	3.33%	3.36%	3.38%	3.40%	3.42%	3.45%	3.47%	3.49%	3.52%	3.54%	3.56%	3.58%	3.61%	3.63%
E al	8,000	3.26%	3.28%	3.30%	3.32%	3.35%	3.37%	3.39%	3.41%	3.43%	3.46%	3.48%	3.50%	3.52%	3.55%
ot	9,000	3.18%	3.20%	3.23%	3.25%	3.27%	3.29%	3.31%	3.34%	3.36%	3.38%	3.40%	3.42%	3.44%	3.47%
T	10,000	3.11%	3.13%	3.15%	3.18%	3.20%	3.22%	3.24%	3.26%	3.28%	3.30%	3.33%	3.35%	3.37%	3.39%

LR > 4.0% 3.5% < LR < 4.0% 3.0% < LR < 3.5%

Considering our organic capital generation after dividend distribution and payment of AT1 coupon, also in case of extremely adverse market scenario, our Leverage ratio would comfortably remain in a range 3.5%-4.0%

Main Financial Ratios

	Mar.20	Jun.20	Sep.20	Dec.20	Mar.21	Jun.21	Sep.21
PFA TFA/ PFA (mln) (1)	25.7	27.9	28.7	30.6	31.6	32.5	33.0
Guided Products / TFA (2)	34%	35%	36%	36%	36%	38%	38%
Cost / income Ratio (3)	29.9%	29.9%	30.7%	32.4%	30.4%	31.3%	31.4%
CET 1 Ratio	25.4%	24.1%	23.3%	28.6%	26.5%	18.6%	18.4%
Adjusted RoE (4)	26.5%	26.0%	23.4%	21.2%	22.2%	23.3%	21.5%
Leverage Ratio	4.39%	4.41%	4.35%	4.85%	4.77%	4.03%	4.04%
Leverage Ratio excl. temporary exemption (5)	4.39%	4.41%	4.35%	4.85%	4.77%	3.81%	3.80%

(1)PFA TFA/PFA: calculated as end of period Total Financial Assets related to the network divided by number of PFAs eop

(2) Calculated as Guided Products eop divided by Total Financial Assets eop

(3) C/I ratio net of non recurring items (see page 45 for details) calculated as Operating Costs divided by Revenues net of non recurring items

(4) RoE: annualized Net Profit, net of non recurring items (see page 45 for details) divided by the average book shareholders' equity for the period (excluding dividends expected to be distributed and the revaluation reserves)

(5) Leverage ratio excluding temporary exemption (it includes exposures towards Central Banks within total leverage ratio exposures).

Fineco - a fully independent public company starting from May 2019

Strategy and Business model

Fineco exit from the UniCredit Group has no implications on its strategy and business model: Fineco enjoyed limited synergies with UniCredit and, as a fully independent company, continues to focus on maximizing shareholders' value via healthy, sustainable and organic growth

Transitional Arrangements with UniCredit Group

Fineco and UniCredit have agreed to enter into certain transitional arrangements to ensure full continuity and an orderly and smooth transition from a regulatory, liquidity and operational standpoint

• No change in the investment policy envisaging an increasing diversification of financial investments as the existing stock of UniCredit bonds progressively runs off by 2024 INVESTMENT
  • UniCredit has granted a financial collateral in favor of Fineco to secure the credit risk exposures towards UniCredit and neutralize the capital impacts and risk concentration limits
• UniCredit will continue to provide, on an interim basis, certain services in order to allow Fineco to act in full operational continuity. The contract for customers' access to banking services through smart ATMs and physical branches has been extended for 20 years INFRAGROUP SERVICES
• Fineco has exercised at the end of 2019 the option for the purchase of its brand at the price of €22.5mln plus VAT TRADEMARK

STRATEGY

Fineco Asset Management in a nutshell

AUM at €22.6bn, of which €14.3bn retail classes(1)

	FAM EVOLUTION (53 strategies)
	FAM Megatrend: multi-thematic fund investing in secular trends
	New building blocks both vertical and based on risk profile
FUNDS OF FUNDS	FAM Target: decumulation products for customers who want to take advantage of bear market phases
	CORE SERIES (30 strategies)
	Release of Premium Share Classes
	Additional sub-advisory mandates in pipeline to further enlarge the offer through quality and exclusivity agreements for Fineco clients only
FAM SERIES	FAM Global Defence: new capital preservation solution
(sub-adviced funds)	New flagship FAM Target China Coupon and ESG Target Global Coupon: new investment solutions to build up exposure towards equity
	43 strategies
INSTITUTIONAL	Underlying funds for advisory solutions (both funds of funds and Insurance wrappers) allowing a better control of the value chain to retain more margins and lower customers' TER
BUSINESS	53 strategies, including also Passive and new Smart Beta funds
	Quality improvement and time to market for customers and distribution needs
BENEFITS	Several efficiencies leveraging on a vertically integrated business model combined with the strong operating efficiency which is in Fineco's DNA
	Better risk management thanks to the look-through on daily basis on funds' underlying assets

Win-win solution: lower price for clients, higher margins

58

Brokerage: extracting value from the vertical integration

After the successful integration of our asset management business through FAM, we are now applying the same strategy with the launch of Leveraged Certificates thanks to our strong operating leverage and to the consistently increasing volumes

	We have launched our offer Leveraged Certificates offer and are now issuer, market maker and distributor.
Leveraged Certificates	Thanks to the vertical integration of the business and the full control in the relationship with clients, over time we are going to convert low-value flows on other issuers' certificates into our own. bn(1) revenues(2) Market size in Italy: 13 volumes and 100 mln We are also targeting flows on leveraged ETFs and covered warrants
	Step 1: launch of the first certificates on FTSE MIB, DAX, EuroSTOXX50, CAC and forex (eur/usd, eur/gbp, eur/jpy, gbp/usd Step 2: widen the leveraged certificates offer

On July 22nd, 2021 FinecoBank finalized the acquisition of a 20% stake (cost around 1.25mln) of Hi-MTF

Rationale: to increase our ability to extract value from the vertical integration of the business thanks to our clients' strong volumes

Hi-MTF

Fineco UK vs competitors

Products and services

		FINECO N K	19	HARGREAVES LANSDOWN	Revolut	C + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
	Bank Account	>	×	×
BANKING	Multi Currency	>	×	X	>
	Debit Cards	>	×	×	>
	Shares	V	1	1	>	>
	Bonds	1	×	V	×	>
TRADING	Futures & Options	1	X	X	X	×
	CFDs	1	1	×	×	×
	FX	1	>	X	×	×
	Analytic tools	>	×	×	×	×
	Funds	1	×	>	×	1
INVESTING	ISA		1	>	×	V
	SIPP	>	×	>	×	×

Coming Soon

Platform features

Usability, reliability and advanced tools

	FINECO BANK	10	HARGREAVES LANSDOWN	Revolut	HSBC
Free Basic Market Data	1	1	1	1	>
Free Real time DMA	1	X	×	X	×
Advanced Charting tool	1	×	×	×	×
Recurring investments	1	×	>	×	V
Trading order strategies	1	V	×	×	×
Stock screener	1	X	×	×	X
Payments	V	X	×	1	1
Budget track	1	×	×	1	×
Open banking	1	X	×	1	1

Fineco UK: Premium service without premium price

Disruptive pricing 100% sustainable thanks to our strong operating leverage

	ਦੀ ਹੈ. 2019 ਹੋਈ। ਜਿਹੇ ਇੱਕ ਪਿੰਡ ਕਰਕਾਰਕ ਹੋਈ ਰੋਕਕਰ
Share CFD\Broker Buy 100 units	FINECO ANK B	IG	CilliC cmc markets	SAXO BANK	Plus500
HSBC * 498.20 GBp	O	£10	ਣੌਰੇ	£8	£0.67
APPLE * 225.64 USD	O	£15	\$10	\$10	\$9.5
O BMW * 42.61 EUR		€10	€9	€10	€10.75
	FINECO m র্ব N K	IG		CiliC cmc markets	SAXO BAN
CFD on UK INDEX	PIPS	PIPS PIPS		PIPS
Ftse100	0.6	1	1		0.8

OTC: zero commission, no added spreads

Multicurrency: best spreads, no commissions

Coming Soon

Platform fees: the most competitive

Portfolio size	FINECO BANK	HARGREAVES LANSDOWN	JA Bell & BARCLAYS		F Fidelity	HSBC
£20.000.00	0.25%	0.45%	0.28%	0.30%	0.35%	0.25%

(1) (1) (1) (1) Stock broking: flat fees

Transaction fees

Preserving our best price/quality ratio

62 (1) Most convenient current accounts. Source: Figures based on publicly available costs for families with average online operations of the main Italian banks (ICC – Indicatore Complessivo dei Costi). The figures relates to the costs of current accounts reported in brackets, and are not taking into account promotions on the fee for the first year.

Fixed Income

Senior Preferred instrument AT1 instruments

• On October ¹⁴th , 2021, Fineco successfully issued 500mln Senior Preferred in order to be immediately compliant with the Fully Loaded MREL Requirement on Leverage Ratio Exposure, which will be binding starting from January 1st, 2024.
  • Annual coupon at 0.50% (5 years Mid Swap Rate plus ⁷⁰ bps vs initial guidance of plus 100 bps) for the first 5 years, floating rate between the fifth and sixth year
  • Public placement with ^a strong demand, more than ⁴ times the offer
  • The instrument has been rated BBB by S&P

Italian Senior Preferred

• €200 mln perpetual AT1 issued on January ²³rd , 2018:
  • Coupon fixed at 4.82% for the initial 5.5 years
  • Private placement, fully subscribed by UniCredit SpA
  • Semi-annual coupon. Coupon (net of taxes) will impact directly Equity reserves
• €300mln perpetual AT1 issued on July ¹¹th , 2019 in order to maintain the Leverage Ratio above 3.5% after the exit from the UniCredit Group:
  • Coupon fixed at 5.875% (initial guidance at 6.5%) for the initial 5.5 years
  • Public placement, with strong demand (9x, €2.7bn), listed in Euronext Dublin
  • Semi-annual coupon. Coupon (net of taxes) will impact directly Equity reserves
  • The instrument was assigned ^a BB- rating by S&P

Italian AT1 yield at first call date

Fineco MREL requirement: the lowest among the disclosed ones