Azimut Holding: 9M 2020 Results

PRESS RELEASE

Azimut Holding: 9M 2020 Results

Net Profit reaches € 230 million in the nine months, target of € 300 million for the FY2020 confirmed

Record Total Assets for the Group at € 63.5bn with the recent US acquisition

In the 9M 2020:

• Total Revenues: €728 million (increasing vs. the € 724 million in 9M 2019) o Recurring Revenues: € 572 million (+4% vs. 9M 2019)
• Operating Costs: € 437 million (-2% vs. 9M 2019)

In the 3Q 2020:

• Total Revenues: € 252 million (+6% vs. 3Q 2019)
• Operating Costs: € 144 million (-4% vs. 3Q 2019)
• Consolidated Net Profit: € 87 million (+15% vs. 3Q 2019)

Milan, 12 November 2020

Azimut Holding's Board of Directors approved today the interim results as of September 30, 2020, whose main figures are:

• Total Revenues in 9M20 equal to € 728.5 million (vs. € 724.3 million in 9M19)
• Operating Profit in 9M20 equal to € 291.5 million (vs. € 279.5 million in 9M19)
• Consolidated Net Profit in 9M20 equal to € 230.2 million (vs. € 246.5 million in 9M19)

Total Managed Assets at the end of September 2020 were €44.2 billion, and counting assets under custody and third parties' funds reached € 57.3 billion (Total Assets at the end of October including the US acquisition of Sanctuary(1) reach the record € 63.5 billion / $75.5 billion). Net inflows for the first 9 months were € 3.6 billion (€4.1 billion at the end of October). The AUM of the international business represent 28% of the Group's total assets, and including the recent acquisition of Sanctuary Wealth(1) in the United States, this number increases to 35%.

Net Financial Position as of September 30, 2020 is negative for € 76 million(2), improving compared to - € 84 million as of June 30, 2020. In the first nine months of 2020 the company distributed more than € 138 million ordinary dividends, completed a Buy Back program for approx. € 45 million and the invested ca. €87 million for growth. The NFP also includes payments for ca. € 48 million for policyholders, stamp duties and tax advance.

Recruitment of financial advisors and private bankers in Italy continued well: in the first nine months of 2020 the Group recorded 62 new hires (72 taking into account October), bringing the total number of FAs to 1808 (1815 at the end of October).

Pietro Giuliani, Chairman of Azimut Holding, comments: "In the first nine months, despite a continued complex and uncertain environment, the Group recorded strong results and is well on track to reach the target of 300 million euros of Net Profit for 2020 as forecasted at the beginning year and confirmed during the pandemic. The quality of the work carried out jointly by our investment and distribution professionals has resulted in an almost total recovery of the net weighted average performance to clients YtD (from 1/1/2019 at +7%). The international business is also continuing to grow well, particularly in the United States with the recent acquisition of Sanctuary Wealth, an independent wealth manager with ca. $7.4 billion of AuM. With the consolidation of this latest transaction, international activities now represent 35% of the Group's total assets. On the private markets front, we continue offering clients highly innovative solutions able to generate value over time. Together with the recent AZ Eltif Ophelia and AZ Eltif Capital Solutions funds, we are preparing the launch of other products fully compliant with the Alternative PIR regulation. Our clients will therefore have a

unique and complete range of solutions to be included in the PIR Box that was studied to maximize fiscal benefits from Alternative PIRs. We are combining potential returns for clients, thanks to a diversified asset allocation in the real economy, with support to Italy through our investments."

The Officer in charge of the preparation of Azimut Holding SpA accounting documents, Alessandro Zambotti (CFO), declares according to art.154bis co.2 D.lgs. 58/98, that the financial information herein included, corresponds to the records in the company's books. The reclassified financial statements attached to this press release are not subject to verification by the audit company; the latter, in charge of the limited audit of the Consolidated Half-Year Financial Report, will complete its examination in accordance with the law.

Note (1): subject only to the approval of the competent authorities. Closing expected towards the end of the year.

Note (2): not including the impact of IFRS 16 as detailed in the table below.

Azimut is Italy's leading independent asset manager (active since 1989). The parent company Azimut Holding was listed on the Italian stock exchange on 7 July 2004 (AZM.MI) and, among others, is a member of the main Italian index FTSE MIB. The shareholder structure includes over 2,000 managers, employees and financial advisors bound by a shareholders' agreement that controls ca. 21.5% of the company. The remaining is free float. The Group comprises various companies active in the sale, management and distribution of financial and insurance products, with Registered Offices mainly in Italy, Luxembourg, Ireland, China (Hong Kong and Shanghai), Monaco, Switzerland, Taiwan, Brazil, Egypt, Singapore, Mexico, Australia, Chile, USA, UAE and Turkey. In Italy, Azimut Capital Management SGR sells and manages Italian mutual funds, Italian alternative investment funds, as well as being active in the discretionary management of individual investment portfolios. Furthermore, Azimut Capital Management SGR, following the demerger by incorporation of Azimut Consulenza SIM, distributes Group and third party products in Italy via a network of financial advisors while Azimut Libera Impresa focuses on the Alternatives business. Overseas main operations are Azimut Investments (formerly AZ Fund Management, founded in Luxembourg in 1999), which manages the multi strategy funds AZ Fund 1 and AZ Multi Asset and the Irish Azimut Life DAC, which offers life insurance products.

Contacts - Azimut Holding S.p.A.

www.azimut-group.com

Investor Relations	Media Relations
Vittorio Pracca	Maria Laura Sisti (Esclapon & Co.)
Tel. [phone]	Tel. [phone]
Email: [e-mail]	Email:[e-mail]
Galeazzo Cornetto Bourlot	Viviana Merotto
Tel. [phone]	Tel. [phone]
Email: [e-mail]	Email: [e-mail]

CONSOLIDATED RECLASSIFIED INCOME STATEMENT

(Data in €/000)	3Q 2020	3Q 2019	30/9/2020	30/9/2019
Acquisition fees and commissions	1,964	1,496	7,138	4,122
Recurring fees	193,619	192,567	572,242	550,372
Variable commissions	22,420	25,228	62,306	111,995
Other income	5,731	3,079	12,571	9,304
Insurance revenues	28,736	16,025	74,235	48,514
Total revenues	252,470	238,396	728,491	724,306
Commission expense	(85,018)	(97,167)	(260,061)	(282,828)
General overheads/Administrative expenses	(51,670)	(47,409)	(156,293)	(146,986)
Depreciation, amortisation/provisions	(7,555)	(5,875)	(20,689)	(15,039)
Total costs	(144,242)	(150,452)	(437,042)	(444,854)
Operating income	108,228	87,944	291,448	279,452
Profits from financial operations	2,220	451	(3,749)	12,276
Net Non operating costs	(2,469)	(1,612)	(3,877)	(6,042)
Interest expense	(4,283)	(2,784)	(12,837)	(7,775)
Profit Before Taxation	103,697	83,999	270,986	277,912
Income taxation	(12,446)	(5,973)	(34,342)	(22,971)
Deferred taxation	(1,343)	953	1,894	2,207
Net Profit	89,908	78,979	238,538	257,147
Minorities	2,767	3,455	8,372	10,598
Consolidated Net Profit	87,141	75,524	230,166	246,549

CONSOLIDATED NET FINANCIAL POSITION

(Data in €/000)	30/9/2020	30/6/2020	31/12/2019
Due to banks	(52,225)	(52,154)	(59,491)
Securities issued	(857,420)	(853,410)	(852,475)
Total debt	(909,645)	(905,564)	(911,966)
Cash and cash equivalents	833,926	821,778	984,685
Net Financial Position	(75,719)	(83,786)	72,719
Lease Liabilities IFRS16 adoption	(42,466)	(43,132)	(43,463)
Net Financial Position including impact of IFRS 16	(118,185)	(126,918)	29,256

CONSOLIDATED INCOME STATEMENT

Data in €/000	3Q 2020	3Q 2019	30/9/2020	30/9/2019
Fee and commission income	212,412	212,914	626,714	647,589
Fee and commission expense	(77,665)	(88,826)	(230,729)	(261,940)
Net fee and commission income	134,748	124,088	395,984	385,649
Dividends and similar income	0	44	0	44
Interest income and similar income	1,015	250	1,612	701
Interest expense and similar charges	(4,691)	(3,531)	(14,419)	(9,940)
Profits (losses) on disposal or repurchase of:	21	45	(399)	76
b) financial assets at fair value through other comprehensive income	21	45	(399)	76
Net gains (losses) on financial assets and financial liabilities at FVTPL	1,783	1,009	(2,739)	14,084
a) assets and liabilities designated at fair value	(1,517)	(1,678)	(4,272)	4,826
b) other financial assets compulsorily measured at fair value	3,299	2,687	1,533	9,258
Net premiums	526	3,011	1,911	3,890
Net profits (losses) on financial instruments at fair value through profit or	83,311	65,313	201,143	211,321
Change in technical reserve when the investment risk is borne by the insur	(874)	(2,783)	(1,592)	(10,404)
Redemptions and claims	(44,169)	(36,354)	(99,001)	(116,977)
Net Margin	171,669	151,092	482,501	478,444
Administrative expenses	(60,646)	(56,607)	(184,993)	(177,377)
a) personnel expenses	(27,716)	(24,086)	(81,933)	(77,105)
b) other expenses	(32,930)	(32,521)	(103,060)	(100,272)
Net accruals to the provisions for risks and charges	(3,328)	(4,554)	(8,033)	(8,129)
Net impairment losses/reversal of impariment losses on property and equi	(2,778)	(2,754)	(8,135)	(8,082)
Net impairment losses/reversal of impariment losses on intangible assets	(4,125)	(4,274)	(11,742)	(9,611)
Other administrative income and expenses	2,652	1,141	1,091	2,532
Operating Costs	(68,225)	(67,048)	(211,812)	(200,667)
Profit (loss) on equity investments	253	(45)	298	135
Pre-tax profit (loss) from continuing operations	103,697	83,999	270,986	277,912
Income tax	(13,789)	(5,020)	(32,448)	(20,765)
Net profit (loss) from continuing operations	89,908	78,979	238,538	257,147
Profit (loss) for the period/year attributable to minority interest	2,767	3,455	8,372	10,598
Net profit (loss) for the period/year	87,141	75,524	230,166	246,549

CONSOLIDATED BALANCE SHEET

ASSETS	(Data in €/000)	30/09/2020	30/06/2020	31/12/2019	30/09/2019
Cash and cash equivalents	27	19	19	33
Financial assets at fair value through profit or loss	6,543,011	6,376,358	6,691,955	6,222,609
c) other financial assets at fair value	6,543,011	6,376,358	6,691,955	6,222,609
Financial assets at fair value through other comprehensive	18,270	17,926	17,378	16,059
income
Financial assets at amortised cost	361,989	339,024	449,720	314,522
Equity investments	17,042	1,849	1,804	3,638
Tangible Asssets		48,037	47,547	48,757	53,690
Intangible Assets		649,314	635,261	634,342	641,547
of which:		-	-	-	-
-Goodwill		543,823	537,263	535,223	552,112
Tax assets		21,233	30,255	36,078	67,035
a) current		749	7,614	11,711	13,820
b) prepaid		20,484	22,641	24,367	53,215
Not current assets and available for sale	-	-	-	-
Other assets		391,159	381,718	373,607	357,829
Total Assets		8,050,082	7,829,955	8,253,660	7,676,962

LIABILITIES	(Data in €/000)	30/09/2020	30/06/2020	31/12/2019	30/09/2019
Financial Liabilities at amortised cost	966,958	963,230	960,000	604,918
a) Payables		109,538	109,819	107,525	252,269
b) Outstanding securities	857,420	853,410	852,475	352,649
Technical reserves where the investment risk is borne by	178,014	177,192	176,630	187,472
policyholders
Financial liabilities designated at fair value	5,806,835	5,684,899	5,976,059	5,862,590
Tax liabilities		68,858	68,421	78,514	72,995
a) current		7,539	8,307	14,532	6,141
b) deferred		61,319	60,113	63,982	66,854
Other Liabilities		226,111	210,286	242,212	229,852
Employees' severance	2,981	2,897	3,011	2,624
Provisions for risks and charges	51,305	48,335	45,703	44,704
b) other		51,305	48,335	45,703	44,704
Capital		32,324	32,324	32,324	32,324
Treasury shares (-)		(68,290)	(68,290)	(23,713)	(23,713)
Capital instruments		36,000	36,000	36,000	36,000
Share premium reserve	173,987	173,987	173,987	173,987
Reserves		343,915	350,620	161,711	193,661
Valuation provisions		(19,130)	(10,955)	(2,631)	(2,230)
Profit (Loss) for the period	230,166	143,025	370,011	246,549
Equity attributable to minority interests	20,048	17,986	23,842	15,229
Total liabilities and shareholders equity	8,050,082	7,829,955	8,253,660	7,676,962