FinecoBank S p A : Presentazione risultati 2021

4Q21 Results

Alessandro Foti

CEO and General Manager

Milan, February 9th 2022

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.
• Neither the Company nor any of its 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.

2

Agenda

Fineco Results

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

3

Executive Summary

Successful 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:

• growth of the Balance Sheet comfortably under control thanks to new initiatives: boosting Fees to increase revenues with a better mix
• new discontinuity in FAM, entered in its second wave to take more control of the value chain and further boost Investing revenues and margins

Outcome: structurally higher profitability and capital light business model, allowing us to distribute increasing DPS and to invest more in our growth

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

• 2021 adj. Net Profit at 349mln, +7.6% y/y(1) beating the previous record high of 2020, confirming the sustainability of a business model able to deliver consistent results in every market condition
• 2021 adj. Revenues at 805mln, +7.4% y/y(1) mainly supported by Investing (+30% y/y) thanks to volume effect and to the strong acceleration of AUM flows. Brokerage confirmed a structurally higher floor also in an environment characterized by much lower volatility compared to 2020
• Operating Costs well under control at -259mln,+4.4% y/y, excluding costs related to the acceleration of the growth of the business(2)
• C/I ratio adj. at 32.2%, confirming strong operating leverage as a key strength of the Bank

Strong capital position

• CET1 ratio at 18.8%,TCR at 29.6%, Leverage ratio at 4.02%
• 2021 Dividend proposal: € 0.39 per share

Accelerating commercial activity towards AUM

• Net sales in 2021 at 10.7bn (+15% y/y), o/w AUM at 7.3bn (+70% y/y). TFA at 107.9bn with Asset under Management at 55.5 bn (+22% y/y) and the penetration of Guided products on Asset under Management at 76%
• Fineco Asset Management retail net sales at 3.9bn in 2021 (+81% y/y) and TFA at 24.8bn (+52% y/y).
• January: Strong net sales at 0.7bn, o/w AUM 0.3bn. FAM institutional net sales were equal to 0.5 bln. Brokerage revenues estimated at ~19mln (revenues ~70% higher vs average monthly revenues in 2017-2019 y/y)

4

(1) 2021 non recurring items: 4Q21 -0.7 mln gross (-0.5 mln net) due to Voluntary Scheme; 2Q21 realignment of the intangible assets: 32 mln net; FY20 non recurring items: Voluntary Scheme: 3Q20: -0.2 mln gross, -0.2 mln net; 1Q20 -1.2mln gross, -0.8mln net

(2) Excluding costs strictly related to the growth of the business, mainly FAM (-4.2 mln y/y) and marketing related to UK (-1.1 mln y/y)

Record high FY21 Net Profit in a "new normal world"

Adj. Net Profit at 349.2mln, +7.6% y/y boosted by strong acceleration of Investing, confirming that the Bank is in a new dimension of growth. Strong operating leverage with C/I ratio at 32%

		Net Profit, mln
excluding non recurring items (1)	Adj. RoE (2)	Adj. Cost/Income (2)
			Systemic charges:
			FY21: -40.0mln (gross)
			FY20: -26.8mln (gross)
				+7.6%
	+17.5%		380.7
				323.6
				349.2
		+26.7%		324.5
78.2	72.6	91.5

Revenues, mln

excluding non recurring items (1)

			+7.4%
	+18.0%		747.8	803.8
	+7.3%
175.9	193.5	206.9	749.2	804.5
		207.6
4Q20	3Q21	4Q21	FY20	FY21

Operating costs, mln

The yearly increase is mainly linked to costs related to the growth of the business

		91.9
4Q20	3Q21	4Q21	FY20	FY21

+6.2%

FY21(3): +4.4% y/y

+16.1%

+6.5%

20%	20%	25%	21%	22%
38%	32%	34%	32%	32%

243.0 258.9

67.2 61.5 71.3

4Q20

3Q21

4Q21

FY20

FY21

	(1) 2021 non recurring items: 4Q21 -0.7 mln gross (-0.5 mln net) due to Voluntary Scheme; 2Q21 realignment of the intangible assets: 32 mln net; 9M20 non recurring items: Voluntary Scheme: 3Q20: -0.2 mln gross, -0.2 mln net; 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, mainly FAM (-4.2 mln y/y) and marketing related to UK (-1.1 mln y/y)