Banca Farmafactoring S p A : FY 2020 Results

2020 Full Year Results

10th February 2021

A Bank Like No Other® 0

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 or 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 Banca Farmafactoring S.p.A. (the "Company") and its subsidiaries (collectively the Company and its subsidiaries, the "Group"). 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) Carlo Zanni, 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 BFF Banking Group documented results, financial accounts and accounting records.

Neither the Company nor any member of the Group 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.

Today's speakers

Massimiliano Belingheri

Group CEOPiergiorgio Bicci Chief Financial OfficerCaterina Della Mora Director, Group Investor Relations, Strategy and

M&A

Key financial takeaways of FY 2020

Financial performance COVID-proof

Solid financial results, in line with previous quarters' trends:

• ▪ FY20 Adjusted net income at €97.6m, -1% y/y (+7% y/y excl. net LPIs over-recoveries)

• ▪ New business volume at €5.8bn (+9% y/y)

• ▪ Flat customer loans portfolio, due to faster collection. Outperformance vs. Italian factoring market. 43% outside Italy up from 41% at the end of 2019

• ▪ Increased stock of unrecognized off-balance sheet LPIs at €406m

• ▪ Available funding at €4.2bn, with €0.6bn undrawn credit lines

• ▪ Low risk profile, with net NPLs -34% y/y, 8bps Cost of Risk, and increased Coverage ratio at 84%. Negligible amount of credit holidays: €3.0m, 0.07% of Customer Loans as of 31/12/2020

• ▪ c. €169m of 2019 & 2020 accrued dividends, not included in capital ratios

• ▪ Strong capital position (CET1 ratio 15.5% and Total Capital ratio 21.6%), with €107m excess capital above 15% TC ratio target. CET1 ratio of 26.0% including accrued dividends