FinecoBank — Investor Presentation 2021

Aug 3, 2021

Alessandro Foti CEO and General Manager

2Q21 Results

FINECO. SIMPLIFYING BANKING.

Milan, August 3rd 2021

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.
• Neither the Company nor any of its representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it.

Agenda

Next steps

Fineco UK

Key messages

Executive Summary

4

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"

• 1H21 Net profit at 185mln, +2% y/y(1) beating the previous record high of 1H20, confirming the sustainability of a business model able to deliver consistent results in every market condition
• 1H21 Revenues at 403mln, +3% y/y(1) mainly supported by Investing (+23% 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 -126mln, +4.7% y/y, excluding costs related to the acceleration of the growth of the business(2) . Yearly comparison also affected by 1H20 strict lockdown
• C/I ratio at 31.3%, confirming operating leverage as a key strength of the Bank

Strong and safe capital position

• 1Q21 CET1 ratio at 18.6%(3) ,TCR at 29.9%(3) , Leverage ratio at 4.0% (3)
• 2019-2020 Dividend proposal: € 0.53(4)

Accelerating commercial activity

• Net sales in 1H21 at 5.8bn (+22% y/y), o/w AUM at 4.0bn (+152% y/y). TFA at 101.4bn with Asset under Management at 51.4 (+28% y/y) and the penetration of Guided products on Asset under Management at 75%
• Fineco Asset Management retail net sales at 2.3bn in 1H21 (+129% y/y) and TFA at 20.3bn.
• July estimates: Strong net sales at ~0.9bn (+34% y/y), o/w AUM 0.5bn and deposits 0.36bn due to seasonality. Brokerage revenues estimated at ~15mln despite very low volatility (revenues ~30% 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; FY20 non recurring items: Voluntary Scheme: 1Q20 -1.2mln gross, -0.8mln net (2)Excluding costs strictly related to the growth of the business, mainly: marketing expenses (-1.7mln y/y, mainly related to UK), FAM (-1.4mln y/y) (3)

Including the proposal for 2019-2020 dividend payment (4) Following the communication by ECB (23 July 2021) and by Bank of Italy (30 July 2021) and following the dialogue with the Supervisory Authorities, the Board of Directors will propose at the Shareholders' meeting on 21st October 2021, to distribute a DPS equal to €0.53

2Q21 Recast for a better representation of Investing

In order to give a better representation of Investing net commissions, in line with prevailing market practice, we have recasted into Net commissions (Investing):

• Other expenses/income (0.6mln in 1H21), represented by cost efficiencies achieved by FAM (already accounted into Investing revenues) 1

• Other Administrative Expenses (-18.8mln in 1H21), represented by costs related to the Network of PFAs (recruiting, loyalty, FIRR, Enasarco) 2

• PFA Incentives previously accounted into other product areas commissions (-3.2mln in 1H21) have been recasted into Investing commissions, following the change of the PFAs incentive scheme (which is now only based on AUM) 3

Reconciliation
Reconciliation (mln)	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Net commissions	-9.1	-6.1	-5.6	-4.1	-24.9	-10.7	-7.5	-15.2	-18.1
o/w banking	0.8	0.8	0.6	1.1	3.2	0.8	0.8	1.5	1.6
o/w brokerage	0.7	0.7	0.6	1.0	3.1	0.8	0.8	1.5	1.6
o/w investing	-10.5	-7.7	-6.9	-6.2	-31.3	-12.2	-9.1	-18.2	-21.3
Other expenses/income	0.0	0.0	0.0	-1.6	-1.6	0.0	-0.6	0.0	-0.6
Other admin.exp. net of recoveries	9.1	6.1	5.6	5.8	26.6	10.7	8.1	15.2	18.8

Note:

5

In the past we structurally overestimated our Cost/Income ratio as we had to apply the accounting rules in line with our previous Parent company. Now, by aligning ourselves to the prevailing market practice within the asset gatherer industry, we are reflecting our real operating leverage.

	2014	2015	2016	2017	2018	2019	2020	1H21
Cost / Income Old	47%	43%	42%	40%	39%	38%	35%	34%
Cost / Income recasted (New)	44%	40%	39%	37%	36%	36%	32%	31%

Facing a "new normal world": record high 1H Net Profit

Adj. Net Profit at 184.6mln, +2% 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.

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(1) Costs related to the Network of PFAs (recruiting, loyalty, FIRR, Enasarco) have been recasted from Other Administrative Expenses into Net commissions to give a better representation of Investing

(2) 2Q21 non recurring items: realignment of the intangible assets: 32 mln net; FY20 non recurring items: Voluntary Scheme: 1Q20 -1.2mln gross, -0.8mln net

(3) 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) (4) Excluding costs strictly related to the growth of the business, mainly: marketing expenses (-1.7mln y/y, mainly related to UK), FAM (-1.4mln y/y)

Our activity of deleveraging the Balance Sheet is generating also profits from Treasury management…

Net financial Income stable y/y thanks to a more dynamic Treasury activity

(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 and Tax Credit

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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

…and boosting Fees & Commissions and Brokerage Trading Profit

1H Fees and commissions +10% y/y thanks to the positive contribution by all business areas. Brokerage confirming the structurally higher floor despite lower market volatility and volumes vs 1H20 and 1Q21

(1) For a better representation of Investing revenues, the following items have been recasted into Investing net commissions: cost efficiencies achieved by Fineco Asset Management have been recasted from Other expenses/income, Costs related to the Network of PFA recasted from Other Administrative Expenses (recruiting, loyalty plan, FIRR, Enasarco), PFA Incentives from other product areas to Investing. (2) Trading income does not include Profit from Treasury Management

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

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Our priority: accelerating on Investing

1H21 revenues increasing thanks to volume effect and strong acceleration in AUM net sales. Margins slightly higher thanks to the operational efficiency given by Fineco Asset Management and a first sign of higher risk appetite by clients

9 (1) "PFA Incentives" includes the recast of incentives to the Network of PFA from other product area into investing incentives following the change of the incentive system for PFA, which is now only based on AUM. For more details see slide 51 and 52 (2) "Other PFA costs" includes costs related to the Network of PFA recasted from Other Administrative Expenses (recruiting, loyalty plan, FIRR, Enasarco) into Net commissions in order to give a better representation of Investing revenues. For more details see slide 51 and 52 (3) "Other Commissions" includes revenues coming from FAM costs efficiencies achieved during the year related to fund restructuring. For more details see slide 51 and 52

Cost efficiency and operating leverage confirmed in our DNA

1H21 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 1H20 strict lock-down (1H20 non HR lower vs avg 1H in the period 2010-2019)

(1) Excluding costs strictly related to the growth of the business in 1H21, mainly:

Operating costs: marketing expenses (-1.7mln y/y, mainly related to UK), FAM (-1.4mln y/y)

Staff expenses: FAM (-1.3mln y/y)

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Non HR costs: marketing expenses (-1.7mln y/y, mainly related to UK), FAM (-0.1mln 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)

• 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. 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

Following the communication by ECB (23 July 2021) and by Bank of Italy (27 July 2021) and following the dialogue with the Supervisory Authorities, the Board of Directors will propose at the Shareholders' meeting on 21st October 2021, to distribute a DPS equal to €0.53 (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

TFA breakdown

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

Net sales breakdown

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

1.0

5.5

July estimated net sales: ~0.8bn, o/w ~ 0.5bn AUM

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

(1) Private Banking clients are clients with more than € 0.5mln TFA with the Bank

(2) AIPB (Associazione Italiana Private Banking) as of 1Q21

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(3) AIPB «FA networks» refers to "Modelli Misti" and include the following players: Allianz Financial Advisors, Banca Euromobiliare, Banca Generali PB, Banca Mediolanum, Banca Patrimoni Sella, Widiba, CheBanca!, Deutsche Bank, Fideuram ISPB, Fineco (figures as of 1Q21)

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 ~40-45mln thanks to the smart repricing launched in 2020, 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:

• For 2021 revenues are expected to increase in a range between 20-25% vs 2020 with resilient / slightly higher margins compared to 2020
• Going forward we expect a strong acceleration both 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 in a range between 4.5-5% y/y. Please note that there might be additional costs related to FAM as we are introducing a strategic discontinuity to improve the efficiency of the value chain in the Investing business
• Going forward we expect the growth of running costs to stabilize in a range between 4.5-5%, not including costs coming from the projects related to the expansion abroad and to FAM
• 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: ~-37/-39mln of DGS+SRF in provisions for risk and charges, including the ~-2mln SRF charges already booked in 2Q21. 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 ~1p.p. per year
• Capital Ratios: CET1 floor at 17%, Leverage Ratio very well under control and in a range 3.5%-4.0%
• 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)

Focus on deleveraging

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

STRONG COMMERCIAL FOCUS ON AUM:

targeting only AUM net sales and solutions with a strong RISK MANAGEMENT. FAM already best-positioned thanks to the high-transparency 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

4

3

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

• FAM Target and Pension funds for risk-adverse clients
• Distribution of third-parties savings accounts (live in test phase) to lower the amount of liquidity held by clients with no intention to invest and generate revenues without increasing the Balance Sheet. 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(1) 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 also leveraging on our Big Data Analytics

1

2

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 acceleration of 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: retail net sales in 1H21 exceeded the whole FY20

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

FAM contribution to Fineco AUM net sales

FAM retail net sales in 1H21: +129% y/y

FAM is strongly and consistently contributing to Fineco's AuM net sales in every market condition thanks to its ability to create 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
• New flagship product range combining a coupon offer, a decumulation engine and equity exposure: after the strong commercial success on its Target China strategy, FAM has already launched the brand new ESG Target Global Coupon 2026
• 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

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

BROKERAGE

Brokerage: enlargement of client base and increased market share

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

BROKERAGE

Agenda

Fineco Results

Next steps

Key messages

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

Strong acceleration in our customer acquisition

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Fineco UK: Investing in the spotlight

ISA accounts offer, already 1,000+ 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). Ignites Europe (1) stated in a recent study that according to Morningstar, FAM is the asset manager that issued the highest number of products (11 funds) under art. 8 of SFDR regulation among 83 asset managers

• 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

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

FOCUS ON IT OPERATIONS

• Extreme process automation
• Critical processes always in-house
• Time to market and cost reduction
• Continuous innovation fully in-house developed

FULLY INTEGRATED BUSINESS STRUCTURE

• Core system internally managed
• Internal DWH to exploit our Big Data Analytics
• CRM dedicated team for all clients needs

IT SECURITY

• Governance, implementation and operations for cybersecurity & anti-fraud internally managed
• Ownership and control of critical infrastructure, relying on cloud for massive, scale-out workload needs only

FTEs in Back-Office OUR INTERNAL IT KNOW-HOW

A S T R A T E G I C C H O I C E

r e s u l t i n g i n u n m a t c h e d u s e r e x p e r i e n c e f o r b o t h o u r c l i e n t s a n d P F A s

Senior management experienced in IT

No external consultants nor system integrator

FTEs in IT Department

A SINGLE DATABASE POWERING A STRONG DATA MANAGEMENT

Healthy and sustainable growth with a long term horizon

1Q14 2Q14 4Q15 1Q21 1Q15 3Q14 1Q17 3Q15 4Q14 2Q15 1Q16 3Q18 2Q16 3Q16 4Q16 4Q19 2Q17 3Q17 4Q17 1Q18 2Q18 4Q18 1Q19 2Q20 2Q19 3Q19 1Q20 3Q20 4Q20

(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: -28.0mln gross, -18.7mln net; 4Q20: +2.1mln gross, +1.4mln net; 1Q21: -5.8mln gross, -3.9mln net; 2Q21: -1.9mln gross, -1.3 mln net). Costs and revenues have been recasted as costs related to the Network of PFAs have been moved into Net Commissions to give a better representation of Investing

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37.3

2Q21

Safe Balance Sheet: simple, highly liquid

Diversified investment portfolio

• Investment strategy announced during FY17 results unchanged: UC bonds run-offs, blend of government bonds diversified across countries, covered bonds, supranational and agencies
• 99.6% 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

Rock-solid capital position

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(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: 3.81%

⁽¹⁾ Due from banks includes 1.6bn cash deposited at Bank of Italy as of June 2021

Total assets: 99.6% not exposed to volatility in the Balance Sheet

Out of 32.9bn, only 0.1bn of assets at fair value with very limited impacts on Equity reserve

(1) Due from banks includes 1.6bn cash deposited at Bank of Italy as of Jun.21

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

(3) 19.5bn equal to 18.6bn nominal value, o/w Italy 5.7bn nominal value

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

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

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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

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Brokerage

Structurally higher revenues floor despite lower market volatility and volumes vs 1H20 and 1Q21

(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 Fees and commissions related to PFA incentives have been recasted into Investing Net commissions in order to give a better representation of Investing revenues

Managerial Data

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

Average Asset under Management

2Q20 1Q21 2Q21

38.2 46.9 49.6

+29.8%

Jun.20 Mar.21 Jun.21

40.1 48.0 51.4

72% 74% 75%

+7.0%

+5.8%

+28.2%

Guided Products / AUM

43 (1) "PFA Incentives" includes the recast of incentives to the Network of PFA from other product area into investing incentives following the change of the incentive system for PFA, which is now only based on AUM (2) "Other PFA costs" includes costs related to the Network of PFA recasted from Other Administrative Expenses (recruiting, loyalty plan, FIRR, Enasarco) into Net commissions in order to give a better representation of Investing revenues

(3) "Other Commissions" includes other revenues coming from FAM costs efficiencies

Annex

P&L pro-forma(1)

mln	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Net financial income	72.0	75.1	68.6	64.1	279.7	75.1	72.8	147.0	147.9
o/w Net Interest Income	68.2	70.1	68.6	63.9	270.7	61.8	62.5	138.2	124.3
o/w Profit from treasury management	3.8	5.0	-0.1	0.3	9.0	13.2	10.3	8.8	23.6
Net commissions	95.9	98.6	92.3	92.6	379.4	108.1	106.3	194.5	214.3
Trading profit	22.6	25.1	20.3	18.8	86.8	23.9	16.7	47.7	40.6
Other expenses/income	0.6	0.8	0.2	0.4	1.9	0.5	0.1	1.4	0.6
Total revenues	191.0	199.6	181.3	175.9	747.8	207.6	195.9	390.6	403.5
Staff expenses	-24.0	-24.9	-24.6	-26.0	-99.5	-26.2	-26.7	-48.9	-52.9
Other admin.exp. net of recoveries	-27.4	-28.5	-27.8	-34.4	-118.0	-30.6	-29.9	-55.9	-60.6
D&A	-6.1	-6.2	-6.4	-6.8	-25.4	-6.3	-6.4	-12.3	-12.7
Operating expenses	-57.5	-59.6	-58.8	-67.2	-243.0	-63.1	-63.0	-117.0	-126.1
Gross operating profit	133.6	140.0	122.4	108.7	504.8	144.4	132.9	273.6	277.4
Provisions	-1.1	-6.5	-32.0	5.5	-34.1	-8.2	-5.8	-7.6	-14.0
LLP	-1.0	-2.7	0.1	0.2	-3.3	-0.5	-1.2	-3.7	-1.7
Profit from investments	-0.1	-3.7	-0.2	-2.3	-6.3	-0.6	1.8	-3.8	1.2
Profit before taxes	131.4	127.1	90.4	112.2	461.1	135.2	127.7	258.5	262.9
Income taxes	-40.0	-38.3	-25.3	-34.0	-137.5	-40.4	-5.8	-78.3	-46.2
Net profit for the period	91.4	88.7	65.2	78.2	323.6	94.7	121.9	180.2	216.7
Net profit adjusted (2)	92.2	88.7	65.3	78.2	324.5	94.7	89.9	181.0	184.6
Non recurring items (mln, gross)	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Extraord systemic charges (Trading Profit) (3)	-1.2	0.0	-0.2	0.0	-1.4	0.0	0.0	-1.2	0.0

Extraord systemic charges (Trading Profit) (3)	-1.2	0.0	-0.2	0.0	-1.4	0.0	0.0	-1.2	0.0
Realignment of Intangible Assets	0.0	0.0	0.0	0.0	0.0	0.0	32.0	0.0	32.0
Total	-1.2	0.0	-0.2	0.0	-1.4	0.0	32.0	-1.2	32.0

Reconciliation (mln)	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Net commissions	-9.1	-6.1	-5.6	-4.1	-24.9	-10.7	-7.5	-15.2	-18.1
Other expenses/income	0.0	0.0	0.0	-1.6	-1.6	0.0	-0.6	0.0	-0.6
Other admin.exp. net of recoveries	9.1	6.1	5.6	5.8	26.6	10.7	8.1	15.2	18.8

New P&L pro-forma(1) (recasted) P&L pro-forma(1) non recasted (old)

mln	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Net financial income	72.0	75.1	68.6	64.1	279.7	75.1	72.8	147.0	147.9
o/w Net Interest Income	68.2	70.1	68.6	63.9	270.7	61.8	62.5	138.2	124.3
o/w Profit from treasury management	3.8	5.0	-0.1	0.3	9.0	13.2	10.3	8.8	23.6
Net commissions	105.0	104.8	97.9	96.7	404.3	118.7	113.7	209.7	232.5
Trading profit	22.6	25.1	20.3	18.8	86.8	23.9	16.7	47.7	40.6
Other expenses/income	0.6	0.8	0.2	2.0	3.6	0.5	0.8	1.4	1.3
Total revenues	200.1	205.8	186.9	181.6	774.4	218.2	204.0	405.8	422.2
Staff expenses	-24.0	-24.9	-24.6	-26.0	-99.5	-26.2	-26.7	-48.9	-52.9
Other admin.exp. net of recoveries	-36.5	-34.6	-33.4	-40.1	-144.6	-41.3	-38.0	-71.1	-79.3
D&A	-6.1	-6.2	-6.4	-6.8	-25.4	-6.3	-6.4	-12.3	-12.7
Operating expenses	-66.5	-65.7	-64.4	-72.9	-269.6	-73.8	-71.1	-132.2	-144.9
Gross operating profit	133.6	140.0	122.4	108.7	504.8	144.4	132.9	273.6	277.4
Provisions	-1.1	-6.5	-32.0	5.5	-34.1	-8.2	-5.8	-7.6	-14.0
LLP	-1.0	-2.7	0.1	0.2	-3.3	-0.5	-1.2	-3.7	-1.7
Profit from investments	-0.1	-3.7	-0.2	-2.3	-6.3	-0.6	1.8	-3.8	1.2
Profit before taxes	131.4	127.1	90.4	112.2	461.1	135.2	127.7	258.5	262.9
Income taxes	-40.0	-38.3	-25.3	-34.0	-137.5	-40.4	-5.8	-78.3	-46.2
Net profit for the period	91.4	88.7	65.2	78.2	323.6	94.7	121.9	180.2	216.7
Net profit adjusted (2)	92.2	88.7	65.3	78.2	324.5	94.7	89.9	181.0	184.6
Non recurring items (mln, gross)	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
(3) Extraord systemic charges (Trading Profit)	-1.2	0.0	-0.2	0.0	-1.4	0.0	0.0	-1.2	0.0
Realignment of Intangible Assets	0.0	0.0	0.0	0.0	0.0	0.0	32.0	0.0	32.0
Total	-1.2	0.0	-0.2	0.0	-1.4	0.0	32.0	-1.2	32.0

We have recasted into Net commissions (Investing):

1) Other expenses/income, represented by cost efficiencies achieved by Fineco Asset Management (already accounted into investing revenues)

2) Other Administrative Expenses, represented by costs related to the Network of PFAs (recruiting, loyalty, FIRR, Enasarco)

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

	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
mln	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)
Net financial income	72.0	75.1	68.6	64.1	279.7	75.1	72.8	147.0	147.9
o/w Net interest income	68.2	70.1	68.6	63.9	270.7	61.8	62.5	138.2	124.3
o/w Profit from treasury	3.8	5.0	-0.1	0.3	9.0	13.2	10.3	8.8	23.6
Net commissions	95.9	98.6	92.3	92.6	379.4	108.1	106.3	194.5	214.3
Trading profit	23.8	25.1	20.5	18.8	88.2	23.9	16.7	48.9	40.6
Other expenses/income	0.6	0.8	0.2	0.4	1.9	0.5	0.1	1.4	0.6
Total revenues	192.2	199.6	181.5	175.9	749.2	207.6	195.9	391.8	403.5
Staff expenses	-24.0	-24.9	-24.6	-26.0	-99.5	-26.2	-26.7	-48.9	-52.9
Other admin.expenses	-27.4	-28.5	-27.8	-34.3	-118.0	-30.6	-29.9	-55.9	-60.6
D&A	-6.1	-6.2	-6.4	-6.8	-25.4	-6.3	-6.4	-12.3	-12.7
Operating expenses	-57.5	-59.6	-58.8	-67.2	-243.0	-63.1	-63.0	-117.0	-126.1
Gross operating profit	134.8	140.0	122.7	108.7	506.2	144.5	132.9	274.8	277.4
Provisions	-1.1	-6.5	-32.0	5.5	-34.1	-8.2	-5.8	-7.6	-14.0
LLP	-1.0	-2.7	0.1	0.2	-3.3	-0.5	-1.2	-3.7	-1.7
Profit from investments	-0.1	-3.7	-0.2	-2.3	-6.3	-0.6	1.8	-3.8	1.2
Profit before taxes	132.6	127.1	90.7	112.2	462.5	135.2	127.7	259.7	262.9
Income taxes	-40.4	-38.3	-25.3	-34.0	-138.0	-40.4	-37.8	-78.7	-78.2
Net profit adjusted (")	92.2	88.7	65.3	78.2	324.5	94.7	89.9	181.0	184.6
		2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21

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

	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Reconciliation (mln)	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)	1Q21 (1) Adj.	Adj. (1)	Adj. (1)	Adj. (1)	Adj. (1)
Net commissions	-9.1	-6.1	-5.6	-4.1	-24.9	-10.7	-7.5	-15.2	-18.1
Other expenses/income	0.0	0.0	0.0	-1.6	-1.6	0.0	-0.6	0.0	-0.6
Other admin.exp. net of recoveries	9.1	6.1	5.6	5.8	26.6	10.7	8.1	15.2	18.8

We have recasted into Net commissions (Investing):

1) Other expenses/income, represented by cost efficiencies achieved by Fineco Asset Management (already accounted into investing revenues)

2) Other Administrative Expenses, represented by costs related to the Network of PFAs (recruiting, loyalty, FIRR, Enasarco)

1H21 P&L FinecoBank and Fineco Asset Management

	Fineco Asset	FinecoBank	FinecoBank
mln	Management	Individual	Consolidated
Net interest income	-0.1	148.0	147.9
Dividends	0.0	13.7
Net commissions	40.9	173.5	214.3
Trading profit	0.0	40.6	40.6
Other expenses/income	0.0	0.7	0.6
Total revenues	40.8	376.4	403.5
Staff expenses	-3.3	-49.6	-52.9
Other admin.exp. net of recoveries	-2.1	-58.5	-60.6
D&A	-0.1	-12.5	-12.7
Operating expenses	-5.6	-120.6	-126.1
Gross operating profit	35.2	255.8	277.4
Provisions	0.0	-14.0	-14.0
LLP	0.0	-1.7	-1.7
Profit on Investments	0.0	1.2	1.2
Profit before taxes	35.2	241.4	262.9
Income taxes	-4.4	-41.8	-46.2
Net profit for the period	30.8	199.6	216.7

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	1H20	Volumes & Margins	1H21	Volumes & Margins
Financial Investments	54.8	22,543	56.3	22,676	53.0	22,491	49.0	23,334	213.1	22,761	44.6	24,416	43.2	23,981	111.1	22,609	87.8	24,199
Net Margin		0.98%		1.00%		0.94%		0.84%		0.94%		0.74%		0.72%		0.99%		0.73%
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%	113.9	1.01%	88.0	0.73%
Treasury activities (1)	0.8	703	2.1	1,916	2.3	2,114	2.3	2,103	7.4	1,709	3.8	2,791	4.5	3,135	2.8	1,310	8.3	2,963
Net Margin		0.44%		0.43%		0.43%		0.43%		0.43%		0.55%		0.58%		0.43%		0.57%
Leverage - Long	2.9	137	2.4	117	3.1	150	2.8	138	11.1	136	3.4	171	3.9	199	5.2	127	7.3	185
Net Margin		8.42%		8.13%		8.13%		8.10%		8.20%		8.12%		7.93%		8.29%		8.02%
Tax Credit	0.0	0	0.0	0	0.0	0	0.0	0	0.0	0	0.0	1	0.3	41	0.0	0	0.3	21
Net Margin		0.00%		0.00%		0.00%		0.00%		0.00%		0.00%		2.54%		0.00%		2.48%
Lending	11.0	3,094	11.4	3,393	11.6	3,582	11.1	3,670	45.0	3,435	10.8	3,805	11.4	4,138	22.3	3,243	22.2	3,971
Net Margin		1.42%		1.35%		1.28%		1.20%		1.31%		1.15%		1.10%		1.39%		1.13%
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	7.0	1,345	7.5	1,690
Net Margin		1.05%		1.04%		0.99%		0.97%		1.01%		0.90%		0.90%		1.04%		0.90%
o/w Cards	1.2	43	1.1	40	1.1	39	1.1	38	4.5	40	1.0	36	1.0	34	2.3	41	2.0	35
Net Margin		11.41%		11.40%		11.43%		11.45%		11.42%		11.40%		11.36%		11.41%		11.38%
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	8.9	455	8.5	456
Net Margin		3.93%		3.93%		3.86%		3.82%		3.88%		3.83%		3.72%		3.93%		3.78%
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	1,890	4.1	1,402	4.1	1,790
Net Margin		0.57%		0.61%		0.63%		0.49%		0.57%		0.47%		0.46%		0.59%		0.46%
(2) Other	-1.3		-2.1		-1.3		-1.3		-5.9		-0.7		-0.8		-3.3		-1.6
Total	68.2		70.1		68.6		63.9		270.7		61.8		62.5		138.2		124.3
Gross Margin		1.08%		1.04%		0.98%		0.88%		0.99%		0.82%		0.80%		1.06%		0.81%
Cost of Deposits		-0.03%		-0.01%		0.00%		0.00%		-0.01%		0.00%		0.00%		-0.02%		0.00%

Volumes and margins: average of the period

48

Net margin calculated on real interest income and expenses

(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	IT0005010340	Euro	382.5	5-Jul-21	Euribor 1m	2.58%
2	IT0005010225	Euro	382.5	18-Oct-21	Euribor 1m	2.60%
3	IT0005040099	Euro	100.0	24-Jan-22	Euribor 1m	1.46%
4	IT0005057994	Euro	200.0	11-Apr-22	Euribor 1m	1.43%
5	IT0005083743	Euro	300.0	28-Jan-22	Euribor 1m	1.25%
6	IT0005114688	Euro	180.0	19-May-22	Euribor 1m	1.19%
7	IT0005120347	Euro	700.0	27-Jun-22	Euribor 1m	1.58%
8	IT0005144065	Euro	450.0	14-Nov-22	Euribor 3m	1.40%
9	IT0005144073	Euro	350.0	15-Nov-21	Euribor 3m	1.29%
10	IT0005158412	Euro		250.0 23-Dec-22	Euribor 3m	1.47%
11	IT0005163180	Euro	600.0	11-Feb-23	Euribor 3m	1.97%
12	IT0005175135	Euro	100.0	24-Mar-23	Euribor 3m	1.58%
13	IT0005217606	Euro	350.0	11-Oct-23	Euribor 3m	1.65%
14	IT0005241317	Euro	622.5	2-Feb-24	Euribor 3m	1.52%
	Total	Euro	4,967.5		Euribor 1m	1.71%

Financial Investments

Further improvements for a diversified asset side

(1) Sovereign Supranational and Agencies

50

(2) Avg 1H21 "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 other (UK, Poland, Switzerland, Iceland, Latvia, Qatar) (3) Calculated on nominal value as of June 30th 2021

Details on Net Commissions

New Net commissions by product area Recasted										Net commissions by product area (Old)
mln	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21	mln	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Banking	9.5	11.1	10.4	3.2	34.2	10.8	11.9	20.6	22.7	Banking	8.8	10.3	9.7	2.2	31.0	10.0	11.0	19.1	21.1
Brokerage o/w	36.3	38.3	27.1	31.7	133.5	40.2	29.5	74.6	69.7	Brokerage o/w	35.6	37.6	26.5	30.7	130.4	39.4	28.7	73.1	68.1
Equity	30.0	31.0	21.7	26.5	109.2	36.1	24.6	61.0	60.7	Equity	30.0	31.0	21.7	26.5	109.2	36.1	24.6	61.0	60.7
Bond	1.0	3.8	2.2	1.9	9.0	0.8	2.3	4.8	3.1	Bond	1.0	3.8	2.2	1.9	9.0	0.8	2.3	4.8	3.1
Derivatives	4.5	3.7	2.6	2.7	13.5	2.9	2.2	8.2	5.1	Derivatives	4.5	3.7	2.6	2.7	13.5	2.9	2.2	8.2	5.1
Other commissions	0.7	-0.1	0.7	0.6	1.8	0.4	0.4	0.6	0.8	Other commissions(1)	0.0	-0.9	0.1	-0.4	-1.3	-0.4	-0.4	-0.9	-0.8
Investing o/w	50.3	49.4	54.9	57.8	212.4	57.2	65.0	99.7	122.2	Investing o/w	60.8	57.1	61.8	64.0	243.7	69.4	74.2	117.9	143.6
Placement fees	1.7	1.4	1.5	1.8	6.3	2.2	1.7	3.1	3.9	Placement fees	1.7	1.4	1.5	1.8	6.3	2.2	1.7	3.1	3.9
Management fees	61.9	58.9	64.2	67.5	252.5	72.5	78.4	120.8	150.9	Management fees	61.9	58.9	64.2	67.5	252.5	72.5	78.4	120.8	150.9
to PFA's: incentives	-4.0	-4.0	-4.4	-6.8	-19.2	-6.2	-6.7	-8.0	-12.9	to PFA's: incentives	-2.5	-2.5	-3.1	-4.7	-12.8	-4.7	-5.0	-5.0	-9.7
to PFA's: LTI	-0.2	-0.7	-0.7	-0.6	-2.3	-0.6	-0.9	-0.9	-1.5	to PFA's: LTI	-0.2	-0.7	-0.7	-0.6	-2.3	-0.6	-0.9	-0.9	-1.5
Other PFA costs	-9.1	-6.1	-5.6	-5.8	-26.6	-10.7	-8.1	-15.2	-18.8
Other commissions	0.0	0.0	0.0	1.6	1.6	0.0	0.6	0.0	0.6	Other	-0.2	-0.2	-0.2	-0.2	-0.8	-0.1	-0.1	-0.4	-0.3
Other	-0.2	-0.2	-0.2	-0.2	-0.8	-0.1	-0.1	-0.4	-0.3	Total	105.0	104.8	97.9	96.7	404.3	118.7	113.7	209.7	232.5
Total	95.9	98.6	92.3	92.6	379.4	108.1	106.3	194.5	214.3
Reconciliation (mln)	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Net commissions	-9.1	-6.1	-5.6	-4.1	-24.9	-10.7	-7.5	-15.2	-18.1
o/w banking	0.8	0.8	0.6	1.1	3.2	0.8	0.8	1.5	1.6
o/w brokerage	0.7	0.7	0.6	1.0	3.1	0.8	0.8	1.5	1.6
o/w investing	-10.5	-7.7	-6.9	-6.2	-31.3	-12.2	-9.1	-18.2	-21.3
Other expenses/income	0.0	0.0	0.0	-1.6	-1.6	0.0	-0.6	0.0	-0.6
Other admin.exp. net of recoveries	9.1	6.1	5.6	5.8	26.6	10.7	8.1	15.2	18.8

We have recasted into Net commissions (Investing):

1) Other expenses/income, represented by cost efficiencies achieved by Fineco Asset Management (already accounted into investing revenues)

2) Other Administrative Expenses, represented by costs related to the Network of PFAs (recruiting, loyalty, FIRR, Enasarco)

3) PFA Incentives previously accounted into other product areas, following the change of the PFAs incentive scheme (which is now only based on AUM)

Revenues breakdown by Product Area

P&L by product area Recasted
mln	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Net financial income	70.5	74.8	66.9	62.8	275.0	72.6	69.8	145.3	142.3
o/w Net interest income	66.6	69.8	67.0	62.6	266.0	59.3	59.5	136.4	118.8
o/w Profit from Treasury Management	3.8	5.0	-0.1	0.3	9.0	13.2	10.3	8.8	23.6
Net commissions	9.5	11.1	10.4	3.2	34.2	10.8	11.9	20.6	22.7
Trading profit	-0.3	-0.6	0.3	0.3	-0.3	1.4	0.1	-0.9	1.5
Other	0.2	0.3	-0.3	0.4	0.6	0.1	0.1	0.5	0.2
Total Banking	79.9	85.7	77.2	66.7	309.5	84.9	81.9	165.6	166.8
Net interest income	3.0	2.5	3.1	2.9	11.5	3.5	4.0	5.5	7.5
Net commissions	36.3	38.3	27.1	31.7	133.5	40.2	29.5	74.6	69.7
Trading profit	25.1	24.2	20.1	18.0	87.4	22.0	15.9	49.2	37.9
Other	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	129.4	115.1
Net interest income	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	99.7	122.2
Trading profit	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	0.0
Total Investing	50.4	49.2	55.1	57.6	212.3	57.2	65.0	99.6	122.2
Reconciliation (mln)	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21

Reconciliation (mln)	1Q20	2Q20	3Q20	4Q20	FY20	1Q21	2Q21	1H20	1H21
Net commissions	-9.1	-6.1	-5.6	-4.1	-24.9	-10.7	-7.5	-15.2	-18.1
o/w banking	0.8	0.8	0.6	1.1	3.2	0.8	0.8	1.5	1.6
o/w brokerage	0.7	0.7	0.6	1.0	3.1	0.8	0.8	1.5	1.6
o/w investing	-10.5	-7.7	-6.9	-6.2	-31.3	-12.2	-9.1	-18.2	-21.3
Other expenses/income	0.0	0.0	0.0	-1.6	-1.6	0.0	-0.6	0.0	-0.6
Other admin.exp. net of recoveries	9.1	6.1	5.6	5.8	26.6	10.7	8.1	15.2	18.8

We have recasted into Net commissions (Investing):

1) Other expenses/income, represented by cost efficiencies achieved by Fineco Asset Management (already accounted into investing revenues)

2) Other Administrative Expenses, represented by costs related to the Network of PFAs (recruiting, loyalty, FIRR, Enasarco)

3) PFA Incentives previously accounted into other product areas, following the change of the PFAs incentive scheme (which is now only based on AUM)

Breakdown Total Financial Assets

mln	Mar.20	Jun.20	Sep.20	Dec.20	Mar.21	Jun.21
AUM	35,516	40,083	41,744	45,381	48,018	51,399
o/w Funds and Sicav	24,122	27,657	28,929	31,578	33,271	35,699
o/w Insurance	9,961	10,676	11,020	11,819	12,659	13,448
o/w GPM	127	169	185	209	238	282
o/w AuC + deposits under advisory	1,307	1,580	1,610	1,776	1,850	1,970
o/w in Advice	516	550	554	561	572	596
o/w in Plus	792	1,030	1,056	1,215	1,278	1,374
AUC	13,485	16,486	16,821	18,314	20,347	21,760
o/w Equity	8,308	10,565	11,006	12,614	14,503	15,695
o/w Bond	5,147	5,878	5,766	5,637	5,772	5,993
o/w Other	30	43	49	63	72	72
Direct Deposits	26,925	26,077	26,432	28,014	28,687	28,273
o/w Sight	26,924	26,077	26,432	28,014	28,687	28,273
o/w Term	1	1	0	0	0	0
Total	75,927	82,646	84,997	91,709	97,052	101,431

o/w Guided Products & Services	25,486	28,984	30,331	33,420	35,381	38,531
o/w TFA FAM retail	7,626	8,920	9,465	10,542	11,465	13,215
o/w TFA Private Banking	28,844	33,024	34,438	38,614	41,844	44,763

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

E-MARKET SDIR
CERTIFIED

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

Main Financial Ratios

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

(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 €20.3bn, of which €13.2bn retail classes(1)

Quality improvement and time to market for customers and distribution needs

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

BENEFITS

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

In the coming weeks we will launch our offer and become 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. Market size in Italy: 13 bn(1) volumes and 100 mln revenues(2) . We are also targeting flows on leveraged ETFs and covered warrants Step 1: launch of the first certificates on FTSE MIB, DAX and US indexes, forex and commodities

Hi-MTF

58

On July 22th, 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

Fineco UK vs competitors

Products and services

		FINECO N K	17	HARGREAVES LANSDOWN	Revolut	C + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
	Bank Account	>	×	X
BANKING	Multi Currency	>	X	X	>
	Debit Cards	>	×	×	>	>
	Shares	>	>	S	>	>
	Bonds	1	X	>	×	>
TRADING	Futures & Options	1	×	X	X	×
	CFDs	1	1	×	×	×
	FX	1	>	X	X	×
	Analytic tools	>	×	X	×	×
	Funds		×	1	×	1
INVESTING	ISA		S	>	×	1
	SIPP		×	>	×	×

Coming Soon

Platform features

Usability, reliability and advanced tools

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

Fineco UK: Premium service without premium price

Disruptive pricing 100% sustainable thanks to our strong operating leverage

	ਦੀ ਹੈ। 2019 ਹੋਈ। ਸੀ। 2019 ਵਿੱਚ ਬੋਈਸੀਲਿੰਗਲੀਜ਼ ਵੀ ਕੰਢਕਾਰਕ ਦੇ ਮਾਰਕਕਰ
Share CFD\Broker Buy 100 units	FINECO ANK ട്ട്	IG	Cilic emc markets	SAXO BANK	Plus500
HSBC * 498.20 GBp	O	£10	ਣੌਰੇ	£8	£0.67
APPLE * 225.64 USD	O	£15	\$10	\$10	\$9.5
BMW * 42.61 EUR	O	€10	€9	€10	€10.75
	FINECO m র্য N K	IG		CIIIC cmc markets	SAXO
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

60

Preserving our best price/quality ratio

61 (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.

Additional Tier 1

First public placement successfully issued with strong demand (9x the offer)

Italian AT1 yield at first call date

On July 21st, 2021

S&P Global Ratings confirmed Fineco's ratings at BBB/A-2, with Stable outlook