Generalfinance

Investor Presentation • Feb 26, 2024

Disclaimer

This presentation has been prepared by Generalfinance and contains certain information of a forward-looking nature, projections, targets, and estimates that reflect Generalfinance management's current views related to future events. Forward-looking information not represent historical facts. Such information includes financial projections and estimates as well as related assumptions, information referring to plans, objectives, and expectations regarding future operations, products, and services, and information regarding future financial results. By their very nature, forwardlooking information involves a certain amount of risk, uncertainty and assumptions so that actual results could differ significantly from those expressed or implied in forward-looking information. These forward-looking statements have been developed from scenarios based on a set of economic assumptions related to a given competitive and regulatory environment.

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 futures 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 expect 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 advise 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 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 apart 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) Ugo Colombo, in his capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects the Generalfinance documented results, financial accounts and accounting records. Neither the Company nor any of its or their respective 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

• Main 2023 Results
• Focus on Asset Quality and Digital Factoring
• 2023 Results: Balance Sheet, P&L, Funding and Capital
• Closing Remarks
• Annexes

Main 2023 Results

Strong and long term oriented shareholder base

Turnover witnessing a strong growth story

2023 annual growth rate (27%) significantly higher than the market average (+1%)

Net Income: high profitability from the operations

Improvement in profitability level in the last 3 years

Focus on Asset Quality and Digital Factoring

A low risk model with a best in class asset quality

DEFINITION OF DEFAULT (DOD)

In accordance with the interpretation provided for pro-solvendo transactions by the Bank of Italy following the 2022 inspection, in 4Q 2023 Generalfinance has applied a new definition of default (DoD) under which past due amounts are to be counted from the moment they exceed 1% of the relevant exposure (and are higher than 100 euro or 500 euro depending on the type of the counterparty), even if there is a buffer between the nominal value of the receivable and the company's exposure.

However, there was no impact in Q4 2023 deriving from the application of the new DoD, thanks to a proactive collection and credit management activities on certain exposures.

However, due to the new DoD, it is possible that past due amounts may experience greater volatility in the future.

Cost of Risk has been computed as Credit Risk Adjustments / Annual Disbursed Loans;

2021 2022 2023

Gross NPE («Non-Performing Exposure») Ratio has been computed as Gross NPE / Gross Loans to Customers

Default Rate and NPE Ratio constantly improving

Default rate: NPE inflow of the year / loans disbursement flow of the year Assifact NPE Ratio (%) as at September, 30 2023

Collection performance: a strategic delivery to our Customers

Generalfinance boasts an excellent portfolio quality, both in terms of Payment Conditions and Payment Delays

Company's DSO expressing a very low duration of the portfolio

A unique business model, leveraging the factoring features

The peculiarity of Generalfinance's business model is the choice of Seller–Debtor, where clients (Sellers) typically have a low credit rating (turnaround situation) while the Debtors underlying customer loans refer to a high credit rating ("investment grade")

Notes: 1) Generalfinance data refers to December 31, 2023 (LTM); Assifact data refers to September 30, 2023; 2) Assifact data net of household debtors.

A strategic asset: the proprietary digital platform

2023 Results: Balance Sheet, P&L, Funding and Capital

Main KPIs behind our business

Statement (€m) Income	2021A	2022A	2023A	YoY%	CAGR '21-'23
Interest Margin	6 2	3 7	9 0	23 6%	20 0%
Commission Net	17 7	23 6	27 2	4% 15	0% 24
Net Banking Income	23 9	30 9	36 2	17 3%	23 0%
adjustments write-backs for credit risk Net value /	(0 2)	(1 2)	(1 3)	8% 4	2% 141
Operating Costs	(9 8)	(13 2)	(12 9)	(1 9%)	15 0%
Profit Net	9 5	10 9	15 1	38 4%	26 2%
(€m)	2021A	2022A	2023A	YoY%	CAGR '21-'23
Turnover	1 402 9 ,	2 009 4 ,	2 559 3 ,	4% 27	1% 35
Allocated Amount	118 1 5 ,	674 0 1 ,	2 161 4 ,	29 1%	39 0%
LTV	7% 79	3% 83	5% 84	4% 1	9% 2
Pro-solvendo LTV	78 6%	81 6%	79 7%	-2 4%	0 7%
Net Banking / (%) Income Average Loan	9 6%	8 7%	8 5%	(2 3%)	(5 8%)
Margin Banking (%) Interest / Net Income	0% 26	5% 23	8% 24	4% 5	(2 4%)
Cost Ratio Income	40 9%	42 7%	35 7%	(16 4%)	(6 5%)
(%) ROE	0% 42	7% 23	3% 29	7% 23	(16 4%)
Balance Sheet (€m)	2021A	2022A	2023A	YoY%	CAGR '21-'23
Cash Cash Equivalents &	33 5	43 7	21 7	(50 5%)	(19 6%)
Financial Assets	321 0	385 4	462 4	20 0%	20 0%
Other Assets	10 7	14 7	15 9	8 0%	21 7%
Total Assets	365 3	443 8	500 0	12 7%	0% 17
Financial Liabilities	314 6	368 4	409 4	1% 11	1% 14
Other Liabilities	18 7	18 6	24 2	30 6%	13 9%
Liabilities Total	333 3	387 0	433 6	0% 12	1% 14
Shareholder's Equity	32 0	56 8	66 4	0% 17	44 2%

A very simple balance sheet with a strong capital position…

RWA Density: RWA / Total Asset

Note: CET1 Ratio and Total Capital Ratio calculated taking into account the net profit of 2023 and total dividends to be distributed (payout 50% of net profit)

…coupled with a robust funding and liquidity position

Note: Commercial Papers included in «Fixed Rate»

Liquidity Position: excluding pledged accounts equal to 5.0 €mln

Securitization: included only for an amount equal to the credit lines approved by banks

Net interest Income fully «hedged» against interest rates volatility

Notes: (1) Calculated as interest expense / average financial liabilities (current and previous year); (2) Spread: average interest rate on seller – average cost of funding (3) (Interest income + delayed payment Interest + other interest)/ average loans (current and previous year); (4) Calculated as Net Interest income/ average loans (current and previous year)

Net commission income, the primary source of profitability

▪ Net Commission Income ~75% of the Net Banking Income

• Commission Income/Turnover slightly lower YoY, taking into consideration the different mix of the portfolio (Corporate Sellers vs Retail Sellers)
• Stable commission expense rate thank to optimization of insurance costs and banking fees

Cost / Income reflecting the efficiency of the operating machine

Note: (1)Other net revenues and risk charges; (2) Operating Costs / Net Banking Income.

Operating costs 2022 Adjusted (net of IPO costs): 11.6 €mln

Cost income ratio 2022 Adjusted (net of IPO costs): 37.7%

Closing Remarks

A well balanced Dividend Policy

Distribution of Net Profit (€) Net Profit Number of shares Dividend per share	2023 15,067,393 12,635,066 0.59	DIVIDEND
Total dividends Retained earnings Payout ratio	7,454,689 7,612,704 49.5%	YIELD 6.1%
Dividend Yield	6.1%

Note: dividend yield calculated as dividend / average share price of the last 10 days, as of 22th Feb 2024

Closing Remarks

2023 year confirms a growing trend, substantially in line with the business plan:

• Profitability level showing significant growth: net profit up +38% (+25% on adjusted basis)
• Excellent asset quality confirms our conservative risk policy, even taking into consideration the new DoD interpretation
• Further reduction of the cost income ratio, expected to drop again thanks to the very good operating leverage
• An updated organization oriented to risk control and business
• Macroeconomic evolution and more difficult environment for SME lending support our strategy
• New shareholders base very positive for future growth, zeroing "overhang risk" associated with our stock and potentially helping new projetcs (expansion abroad)

New steps ahead to further support our numbers:

• New sellers pipeline set to push a stronger growth ahead
• Robust and diversified funding structure to support future growth
• Strong Capital ratios (TCR > 15%) allowing a sound capital buffer for growth even exceeding strategic plan horizon
• Expanding Generalfinance abroad: further steps towards the conclusion of the analysis over foreign market
• Net Income 2024 guidance: >20M; potential effects of new DoD (provisions) to take into account

Income Statement

Income Statement (€m)	2022A	2023A	YoY%
Interest income and similar income	14,0	30,6	118,3%
Interest expense and similar charges	(6,7)	(21,6)	220,4%
INTEREST MARGIN	7,3	9,0	23,6%
Fee and commission income	27,3	31,7	15,6%
Fee and commission expense	(3,8)	(4,5)	17,2%
NET FEE AND COMMISSION INCOME	23,6	27,2	15,4%
Dividends and similar income	0,0	0,0	(100,0%)
Net profi (loss) from trading	(0,0)	0,0	(308,0%)
Net results of other financial a/l measured at fv	0,0	(0,0)	(117,5%)
NET INTEREST AND OTHER BANKING INCOME	30,9	36,2	17,3%
Net value adjustments / write-backs for credit risk	(1,2)	(1,3)	4,8%
a) Financial assets measured at amortised cost	(1,2)	(1,3)	4,8%
NET PROFIT (LOSS) FROM FINANCIAL MANAGEMENT	29,7	34,9	17,8%
Administrative expenses	(13,0)	(13,9)	6,2%
a) Personnel expenses	(6,7)	(7,2)	6,6%
b) Other administrative expenses	(6,3)	(6,7)	5,7%
Net provision for risks and charges	(0,1)	(0,1)	242,1%
b) Other net provisions	(0,1)	(0,1)	242,1%
Net value adjustments / write-backs on pppe	(0,7)	(0,7)	8,7%
Net value adjustments / write-backs on int. Ass.	(0,4)	(0,4)	31,9%
Other operating income and expenses	1,0	2,2	135,5%
OPERATING COSTS	(13,2)	(12,9)	(1,9%)
PRE-TAX PROFIT (LOSS) FROM CURRENT OPERATIONS	16,5	22,0	33,6%
Income tax for the year on current operations	(5,6)	(6,9)	24,2%
PROFIT (LOSS) FOR THE YEAR	10,9	15,1	38,4%

Balance Sheet

EMARKF חו
CERTIFIED

Balance Sheet (€m)	2022A	2023A	Var% YoY
Cash and cash equivalents	43,7	21,6	(50,5%)
Financial assets measured at fair value through p/l	0,0	0,0	13,2%
Financial assets measured at amortised cost	385,4	462,4	20,0%
Equity investments	0,0	0,0	-
Property, Plan and Equipment (PPE)	4,9	5,0	2,6%
Intangible assets	2,0	2,6	27,1%
Tax assets	4,6	5,7	24,2%
a) current	4,1	5,1	23,4%
b) deferred	0,5	0,6	31,8%
Other assets	3,2	2,7	(13,4%)
TOTAL ASSETS	443,8	500,0	12,7%
Financial liabilities measured at amortised cost	368,4	409,4	11,1%
a) payables	331,2	376,8	13,8%
b) outstanding securities	37,2	32,6	(12,3%)
Tax liabilities	4,9	7,1	44,6%
Other liabilities	11,6	14,0	21,2%
Severance pay	1,3	1,5	11,7%
Provision for risk and charges	0,8	1,6	93,3%
Share capital	4,2	4,2	0,0%
Share premium reserve	25,4	25,4	0,0%
Reserves	16,2	21,6	33,7%
Valuation reserves	0,1	0,1	25,5%
Profit (loss) for the year	10,9	15,1	38,4%
TOTAL LIABILITIES AND SHAREHOLDERS'S EQUITY	443,8	500,0	12,7%

An organization oriented to risk control and business

Turnover breakdown vs system average 1/2

Generalfinance's Turnover data refers to December 31, 2023 Assifact's Turnover data refers to September 30, 2023

Turnover breakdown vs system average 2/2

Generalfinance's Turnover data refers to December 31, 2023 Assifact's Turnover data refers to September 30, 2023 1) Household debtors have not been included

Revenues' generation – example

PRO SOLVENDO TRANSACTION		Formula	P&L Accounting
Invoice's nominal value	100 000 ,	a
Advance rate	80 00%	b
Gross disbursed amount	80 000 ,	c = a x b
Maturity of disbursed amount (days)	68	e
interest Contractual rate	50% 7	f
Interest revenues	1150 7	g = ( c x f x (e+2) ) / 365	Prepayment
DSO	70	h
commission Monthly rate	45% 0	i
Commission revenues	1050 00	l = a x i x (h/30)	Prepayment
Total revenues	2200 7	l m = g +	Prepayment
Net disbursed amount	77 799 3 ,	n = c - m
in (days) Delay payment	5	o
Delay in payment interest rate	8 00%	p
in commission Delay payment rate	50% 0	q
Delay in payment interest revenues	87 7	r = ( c x p x o) / 365	Cash basis
in commission Delay payment revenues	83 3	s = a x q x (o/30)	basis Cash
in Delay payment total revenues	171 0	t = r + s	basis Cash
Non-advance amount	20 000 ,	u = a - c

Capital Stack – A capital light lending business