FinecoBank S p A : Presentazione risultati 1Q21

1Q21 Results

Alessandro Foti

CEO and General Manager

Milan, May 11th 2021

FINECO. SIMPLIFYING BANKING.

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.
• This Presentation has been prepared on a voluntary basis since the financial disclosure additional to the half-year and annual ones is no longer compulsory pursuant to law 25/2016 in application of Directive 2013/50/EU, in order to grant continuity with the previous quarterly presentations. FinecoBank is therefore not bound to prepare similar presentations in the future, unless where provided by law. Neither the Company nor any of its representatives, directors or employees shall be liable at any time in connection with this Presentation or any of its contents for any indirect or incidental damages including, but not limited to, loss of profits or loss of opportunity, or any other liability whatsoever which may arise in connection of any use and/or reliance placed on it.

2

Agenda

Fineco Results

• Next steps
• Fineco UK
• Key messages
• Focus on product areas

3

Executive Summary

1Q21 a turning point in our 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:

• acceleration of 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

Record-high net profit in "a new normal world"

• 1Q21 Net profit at 95mln, +3% y/y(1) considering that 1Q20 was the highest in 2020. +21% q/q, confirming the sustainability of a business model able to deliver consistent results in every market condition
• 1Q21 Gross operating profit at 144mln, +7% y/y(1) and 33% q/q, showing the soundness of our industrial growth
• 1Q21 Revenues at 218mln, +8% y/y(1) and 20% q/q mainly supported by Investing (+14% y/y and +6% q/q) thanks to volume effect and to the strong acceleration of AUM flows, and increasing Brokerage (+2% y/y and +26% q/q) showing a structural growth even in an environment characterized by much lower volatility compared to 2020
• Operating Costs well under control at -74mln,+1% q/q and +4.5% y/y, excluding costs related to the acceleration of the growth of the business(2)
• C/I ratio at 33.8%, confirming operating leverage as a key strength of the Bank

Strong and safe capital position

• 1Q21 CET1 ratio at 26.5%(3) and TCR at 38.4%(3)

Accelerating commercial activity

• Net sales in 1Q21 at 3.3bn (+56% y/y), TFA at 97.1bn with Asset under Management at 48.0bn (+35% y/y) and the penetration of
  Guided products on Asset under Management at 74%
• Fineco Asset Management retail net sales at 0.7bn in 1Q21 and TFA at
  17.9bn.
• April: Strong net sales at 0.9bn (in line y/y), o/w 95% in AUM (+36% y/y) and deposits -0.6bn. Record net sales in FAM with 0.5bn retail class. Brokerage revenues estimated at ~17mln despite very low volatility (more than 50% vs average monthly revenues in 2017-2019 y/y)

	(1)	FY20 non recurring items: Voluntary Scheme: 1Q20 -1.2mln gross, -0.8mln net
4	(2) Excluding costs strictly related to the growth of the business: marketing expenses (-2.4mln y/y, mainly related to UK), costs related to PFAS Firr and Enasarco (-0.7mln y/y), FAM (-1.0mln y/y), CRM (-0.2mln y/y)
(3)	Fineco decided to stick to the recommendations of ECB of December 15th, 2020 and to the press release of Bank of Italy of December 16th, 2020, and the Shareholders' Meeting convened on April 28th, 2021 approved the proposal regarding the allocation of

100% of 2020 net profits to reserves

Record high 1Q Net Profit in a "new normal world"

Adj. Net Profit at 95mln, +21% q/q boosted by strong acceleration of Investing and consistently high Brokerage revenues. The Bank has entered a new dimension of growth. C/I ratio at 34%, confirming our operating leverage.

Net Profit, mln

excluding non recurring items (1) Adj. RoE (2)

+2.7%

		+21.1%	Single Resolution
91.4	78.2	94.7	Fund:
5.8mln (gross) in 1Q21
92.2

1Q20 4Q20 1Q21

27% 20% 22%

Revenues, mln

excluding non recurring items (1)

+8.4%

		+20.1%		Record-high revenues thanks
					to the strong acceleration of
200.1			218.2	growth
181.6

201.3

1Q20 4Q20 1Q21

Gross operating profit, mln

Adj. Cost/Income (2)

Operating costs, mln

1Q21(3): +4.5% y/y

+7.2%

+32.8%

133.6 108.7 144.5

134.8

1Q20 4Q20 1Q21

33% 40% 34%

+10.9%

+1.2%

66.5 72.9 73.8

1Q20 4Q20 1Q21

The yearly increase is mainly linked to

costs related to the growth of the business:

• marketing expenses mainly in UK (not in place in 1Q20)
• PFAs for the acceleration of Investing business
• FAM
• Customer care considering that new current accounts almost doubled

	(1)	FY20 non recurring items: Voluntary Scheme: 1Q20 -1.2mln gross, -0.8mln net
5	(2)	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)
(3)	Excluding costs strictly related to the growth of the business: marketing expenses (-2.4mln y/y, mainly related to UK), costs related to PFAS Firr and Enasarco (-0.7mln y/y), FAM (-1.0mln y/y), CRM (-0.2mln y/y)