FinecoBank S p A : Presentazione risultati 2Q21

2Q21 Results

Alessandro Foti

CEO and General Manager

Milan, August 3rd 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.
• 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:

• continuing with 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

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

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

• 1H21 Net profit at 185mln, +2% y/y(1) beating the previous record high of 1H20, confirming the sustainability of a business model able to deliver consistent results in every market condition
• 1H21 Revenues at 403mln, +3% y/y(1) mainly supported by Investing (+23% 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 -126mln,+4.7% y/y, excluding costs related to the acceleration of the growth of the business(2). Yearly comparison also affected by 1H20 strict lockdown
• C/I ratio at 31.3%, confirming operating leverage as a key strength of the
  Bank

Strong and safe capital position

• 1Q21 CET1 ratio at 18.6%(3),TCR at 29.9%(3) , Leverage ratio at 4.0% (3)
• 2019-2020Dividend proposal: € 0.53(4)

Accelerating commercial activity

• Net sales in 1H21 at 5.8bn (+22% y/y), o/w AUM at 4.0bn (+152% y/y). TFA at 101.4bn with Asset under Management at 51.4 (+28% y/y) and the penetration of Guided products on Asset under Management at 75%
• Fineco Asset Management retail net sales at 2.3bn in 1H21 (+129% y/y) and TFA at 20.3bn.
• July estimates: Strong net sales at ~0.9bn (+34% y/y), o/w AUM 0.5bn and deposits 0.36bn due to seasonality. Brokerage revenues estimated at ~15mln despite very low volatility (revenues ~30% higher vs average monthly revenues in 2017-2019 y/y and volatility lower than avg volatility in the same period)

	(1)	2Q21 non recurring items: realignment of the intangible assets: 32 mln net; 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, mainly: marketing expenses (-1.7mln y/y, mainly related to UK), FAM (-1.4mln y/y)
(3)	Including the proposal for 2019-2020 dividend payment
(4)	Following the communication by ECB (23 July 2021) and by Bank of Italy (30 July 2021) and following the dialogue with the Supervisory Authorities, the Board of Directors will propose at the Shareholders' meeting on 21st October 2021, to distribute a DPS equal to €0.53

2Q21 Recast for a better representation of Investing

In order to give a better representation of Investing net commissions, in line with prevailing market practice, we have recasted into Net commissions (Investing):

1•

2•

3•

Other expenses/income(0.6mln in 1H21), represented by cost efficiencies achieved by FAM (already accounted into Investing revenues)

Other Administrative Expenses (-18.8mlnin 1H21), represented by costs related to the Network of PFAs (recruiting, loyalty, FIRR, Enasarco)

PFA Incentives previously accounted into other product areas commissions(-3.2mln in 1H21) have been recasted into Investing commissions, following the

change of the PFAs incentive scheme (which is now only based on AUM)

Reconciliation

Reconciliation (mln)	1Q20	2Q20	3Q20	4Q20		FY20		1Q21	2Q21		1H20	1H21
Net commissions	-9.1	-6.1	-5.6	-4.1	-24.9	-10.7	-7.5	-15.2	-18.1
o/w banking	0.8	0.8	0.6	1.1	3.2	0.8	0.8	1.5	1.6
o/w brokerage	0.7	0.7	0.6	1.0	3.1	0.8	0.8	1.5	1.6
o/w investing	-10.5	-7.7	-6.9	-6.2	-31.3	-12.2	-9.1	-18.2	-21.3
Other expenses/income	0.0	0.0	0.0	-1.6	-1.6	0.0	-0.6	0.0	-0.6
Other admin.exp. net of recoveries	9.1	6.1	5.6	5.8	26.6	10.7	8.1	15.2	18.8

Note:

In the past we structurally overestimated our Cost/Income

ratio as we had to apply the accounting rules in line with our previous Parent company. Now, by aligning ourselves to the prevailing market practice within the asset gatherer industry, we are reflecting our real operating leverage.

	2014	2015	2016	2017	2018	2019	2020	1H21
Cost / Income Old	47%	43%	42%	40%	39%	38%	35%	34%
Cost / Income recasted (New)	44%	40%	39%	37%	36%	36%	32%	31%

5

For more details, see slides 45, 51 and 52 in annex