Banca Finnat Euramerica S p A : ISMO - Italian Stock Market Opportunities

Banca Finnat Euramerica

Results at 31.12.2020 and

30.06.2021 Industrial Plan

R o m e , 2 9 . 0 9 . 2 0 2 1

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A g e n d a

• Industrial plan 2018-2020 - Main lines of action
  II Highlights consolidated results at 31.12.2020

III Highlights consolidated results at 30.06.2021

IV	Strategic Lines and Industrial Plan Objectives 2021-2023

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F o r e w o r d : C O V I D - 1 9 E m e r g e n c y

• In the first two years of the Plan, 2018-2020, the Group's total income was higher than forecast. However, these results were achieved with a different composition of the ratio between service commissions and net interest income. The latter benefited in particular from the excellent results achieved by Treasury Management, whilst the slowdown, especially in the last year, in developing the network of private bankers, resulted in lower growth in services compared with estimates.
• 2020 was impacted by the unexpected emergency situation generated as a result of the COVID-19 pandemic. The pandemic forced many countries to adopt lockdown strategies to limit the effects of the spread, which have had and continue to have considerable consequences, including social repercussions, slowing economic and commercial activity in a number of sectors. Extraordinary economic policies were adopted nationally and internationally to contain the effects of the crisis. It is hoped that all of these measures will facilitate economic recovery in the coming years.
• From the outset, Banca Finnat Group closely monitored developments in the global and national situation arising from the spread of COVID-19. In accordance with that laid down in IAS 1 and following the recommendations of ESMA announced on 11 March 2020, business continuity measures were put in place to ensure operational continuity. To guarantee the safety of its employees and customers, measures were adopted in the areas of work organisation, and safety, information and support protocols for customers (both through the adoption of government measures and through commercial initiatives aimed at consolidating relationships with customers during the pandemic and particularly relating to the wider offer of private banking services).
• Therefore, it should be noted that the Group's activities decreased compared with expectations at the beginning of the year, primarily during the lockdown period between March and May, and essentially due to the limited mobility resulting from events. No Group activities were temporarily interrupted (customer services). The containment measures adopted limited the development of the Bank's plan to hire new private bankers and resulted in a reduction in planned divestments and investments envisaged for SGR. However, thanks in part to our customer focus, there was no pressure on the redemption of products by private customers, nor tensions regarding the liquidity of assets.
• Taking into account the contingent situation, the consolidated net income achieved in 2020, though below the Plan's objectives, is satisfactory and higher than the expectations developed during the first months of the crisis.

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I n d u s t r i a l p l a n 2 0 1 8 - 2 0 2 0 - M a i n l i n e s o f a c t i o n ( 1 / 3 )

• Relocation of the Milan branch to new, more prestigious premises and strengthening of the North area with recruitment of new commercial resources, enabling the North area to increase its share of private funding, albeit to a lesser extent than the Plan's objectives.

PRIVATE BANKING

• Strengthening of the Rome family office thanks to the recruitment of private bankers of high standing. The number of private bankers remained substantially unchanged, but new consultants with a higher level of professionalism and a larger portfolio were recruited following departures during the Plan period; the reduced number is also a result of the retirement of two colleagues in 2020, whose customers were kept under the Bank's management, thus leading to an improvement in the average volume of business per Private Banker and an improvement in the Cost/Income ratio.

Private Banker by branch - Actual data

60		47	48						Roma Via
50		46
										Catone
					5
		5			4			Roma Via
40
	4		6
			6			Piemonte
		12	10						Roma Corso
30		11		Trieste
														Roma Palazzo
20		13	13	12		Altieri
		Filiale Novi
						2					Ligure
								1
10			4
												Filiale Milano
		9		12	12
0

PROPERTY

MANAGEMENT

2018

2019

2020

• Pursuance of carry trade strategies on short and medium term Government Bonds, with profitability above the Plan's forecast (0.20% forecast in the Plan compared with 0.45% in 2018, 0.82% in 2019 and 0.84% in 2020).
• Strengthening of the credit area, the Asset Management division and the Internal Audit organisational unit through the recruitment of new managers with many years' experience including at major groups.

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I n d u s t r i a l p l a n 2 0 1 8 - 2 0 2 0 - M a i n l i n e s o f a c t i o n ( 2 / 3 )

• Consolidation of the leadership as specialist on the AIM Italia market;
• Acquisition of 10 mandates over the three-year period of primary market placement (AIM Italia) and a translisting operation from AIM to the STAR segment of MTA;
• development of ongoing Nomad activities, currently working with 19 issuers;
• development of sponsorship activities on the MTA market;
• increased coverage of the issuers listed on AIM/MTA through the Equity Research Department currently working with 16 companies.

SME SERVICES

100

90

80

70

60

50

40

30

20

10

0

86

72	74
47	52
44

		16	17	19	16	19
	10	7	9			5
				3			2
						0
	2018	2019	2020

Specialists

Back office services

Equity Research Department

Primary and secondary market placement

Nomad Ongoing activities

Listing nomad/Sponsor