Azimut S p A : Group Analyst Update

Azimut Group

Analyst Update

Montecarlo, January 9th 2020

Value creation amongst other Italian financials

Share price performance since IPO vs. Italian financials

								Perf. Total Return
800		AZIMUT				506%	1023%
	FINECO				179%	227%
		MEDIOLANUM				72%	243%
700		MEDIOBANCA				2%	79%
		GENERALI				-15%	50%
600		INTESA SANPAOLO			-25%	64%
		FTSE MIB				-14%	54%
500
400
300
200
100
0
2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
				AZM IM Equity		BMED IM Equity		FBK IM Equity			ISP IM Equity		G IM Equity		MB IM Equity		FTSEMIB Index

Source: Bloomberg at 8/01/2020

2

Value created for long term shareholders

One of the best success stories in the Italian market

Media Società

FTSE MIB

Total Return	+54%	+1023%

1° Best total return stock amongst all financials within FTSE MIB since 2004

3° Best Total Return stock among all FTSE MIB members from 2004

Fonte: Bloomberg

Source: Bloomberg at 08/01/2020.

3

Azimut Net Weighted Average Performance to clients

2019: +8.5% net weighted average performance to clients, above industry

10,00%
9,00%
8,00%
7,00%
6,00%
5,00%
4,00%
3,00%
2,00%
1,00%
0,00%
-1,00%
Dec-18	Jan-19	Feb-19Mar-19Apr-19May-19Jun-19	Jul-19Aug-19	Sep-19	Oct-19	Nov-19
		Azimut Net WAP	Risk Free

Source: Company data at 31/12/2019 and Bloomberg	4
Italian industry: FIDMGEND. Risk free: MTSIBOTR Index.

Italy Private Markets Update

		Investment Fund	Type	Country	Size (€M)	AuM Today
		(€M)
		IPO CLUB	PE	ITA	150	150
		ANTARES AZ1	PD	ITA	128	128
Currently	CORPORATE CASH	PD	ITA	50	50
Managed	FINANCE FOR FOOD	PE	ITA	150	85
		FSI	PE	ITA	70	70
		CORPORATE CASH PLUS	PD	LUX	250	250
		DEMOS 1	PE	ITA	350	140
		GLOBALINVEST	PE (FoF)	ITA	300	40
Under fund		ITA 500	PE (VC)	ITA	40
raising /
	PRIVATE DEBT (reopening)	PD	ITA	50
lauching phase
		ESG (ELTIF) [under approval]	PE / PD	ITA	200
		OPHELIA (ELTIF LUX) [under approval]	PE	LUX	200
Being defined	Equity - 3 projects	PE		400-500
(late 20-early	Debt - 5 projects	PD		1.400-1.500
21)		Real Assets - 2 projects	Real Assets		800-900

Total AUM

(€M)

€0.7-0.8

bln

€1.1-1.2

bln

€2.6-2.9

bln

PE = Private Equity ; PD = Private Debt

Real Estate: A new c. € 800m fund dedicated to Real Estate and Social Infrastructure (ESG compliant) lead by Andrea Cornetti, previously General Manager of Prelios SGR

Source: Company Data

5

Italy Private Markets Update

Commitment over € 1 bn AUM

Club Deal: 6 0 mln €

6 5 0 0 *	2 8 4	2 5 0	Italian Wine Brands
	Pharmanatura
clients	investiments

Digital Value

EdtechX

60 mln€

1 2 7	1 5 0	140
	1 2 0

IPOC3

Club Deal Project Steel

Club Deal Project Pack

														8 5
		7 0
															5 6
										5 0
								40
	Private equity	Private debt	IPO Club	Private debt	Demos 1	GlobALInvest	Corporate	Corporate	Finance for		Other
	Institutional	Institutional		Retail			Cash Plus		Cash		Food	(Start up)
N°Clients	9		1 9	1 5 5	2.140	4 . 3 0 4	6 0	4 0	2 1		1 1		1 2 . 0 0 0
N°Investiments	7		1 4	9	-	F u n d i n g	F u n d i n g	-	2 0		-		2 3 4
							p h a s e	p h a s e

+115 . 3%	+7 2 %	+ 8 0 %	New Entry
From 18 July 2017	From 8 November	From December	Aerospace Technologies
	2018	2014

+ 100%**	+469%***	+2 . 608%**
Turnover growth since	Turnover growth

From the first half of	2015	since 2016
2013

Data as of December 2019. Source: AGC and Mamacrowd.

* Excluding Other (Start up). ** Estimated value at fair market6 value 29. *** Company operations P101

Italy Private Markets Update

Venture Capital Fund - Italia 500

Asset Allocation

• Seed

Investment type • Early Stage

• Late Stage

Target Fund Size	• EUR 40 million
Min. subscription	• EUR 5.000
amount
• 10 years
Tenor	(possibly
	extendable)

Start-up	Later
Stage

Source: Company Data

7

2019: Inflows & AUM

Strong growth in AUM thanks to solid inflows & good performance delivery to clients

Total Assets breakdown (€bn)

Italy		International *	Total Assets reaching all time high at
*
			€59.1bn

		c. 2x	59.1
	50.4	50.8
	43.6			17,1
36.7			12,5	13,8
7,7
4,3
30.0
2,1

Net Inflows in 2019 at €4.6bn, almost entirely organic, from both Italy and International

Italy on an organic basis is 130% higher than 2018

International continues to contribute

thanks to global diversification

Net Performance above industry : +8.5%

Organic (ex. M&A) Net Inflows (€bn):

32,4

27,9

35,937,937,0

4.1

42,0

3,5

2014

2015

2016

2017

2018

2019

2018

2019

Source: Company data	8
Note*: through AZ International Holdings

The record year at the end of a challenging plan

Estimated Revenues

Estimated

Net Profit

Cumulative Dividend 2015-2019E

2019 Target	2019E Preview

• • € 1.00 - 1.03bn
• 300mn € 360-370mn

>75%	≥ 7.8 p.s.
Payout	(≥ 90% Payout)
>60%

2019 Highlights

• € 50mn recurring profit per quarter
• Strong International EBITDA growth
• HQ restructured, regaining efficiency
• Reorganization of Asset Management portfolio
• Performance to clients and stakeholders
• Flat SG&A 2019 vs. 2018

Source: Company data

9

International Business: 2019 showing further improving trends

EBITDA keeps on growing at a significantly higher pace than Assets

Total Assets (€bn)

20
16
12
8
4
0
2012	2013	2014	2015	2016	2017	2018	2019
EBITDA(2) (€mln)
60
50
40
30
20
10
0
2012	2013	2014	2015	2016	2017	2018	2019

Total Revenues(1) (€mln)
160
120
80
40
0
2012	2013	2014	2015	2016	2017	2018	2019

EBITDA Margin
40%
30%
20%
10%
0%
2012	2013	2014	2015	2016	2017	2018	2019

Source: Company data.

Note (1): Revenues `reclassified as per management accounts. Note (2): 10 EBITDA reclassified as per management accounts, excluding one-offs`

Macro-area update: Americas

Consolidated leading presence in Latam, growing in Distribution and Private Markets in the US

New York (AACP)

Miami

Mexico

Brazil

Chile

Asset Management

Distribution

Private Markets

2019 Total Assets	€6.1bn
2019 Net Inflows	€0.8bn

Brazil:

Best in class portfolio management team focusing on Equities, Long/Short, Macro, Fixed Income, Credit, Arbitrage, Impact and Private Pension funds

Proprietary distribution focused on Wealth Management

Chile:

Marketing of UCITS funds to local investors and future upgrade into AM license

Mexico:

Largest independent distribution network

Growing in local AM, currently 3 onshore mutual funds

USA:

AUM and clients on-boarding under way. Synergies with Brazilian operations yet to be fully exploited

Launched AACP to acquire minority GP stakes in Private Equity and Private Credit

11

11

Macro-area update: Europe & Middle East (ex-Italy)

Steady growth in Europe, market leader in Turkey and further upside from the MENA region

Ireland

Luxembourg

Switzerland

Turkey

Monaco

Egypt

UAE

Asset Management

2019 Total Assets	€4.8bn
2019 Net Inflows	€0.6bn

Switzerland:

Consolidating local managers, growing an independent platform

U.A.E.:

Developing an integrated platform in Dubai and Abu Dhabi

Turkey:

Operating since 2012, leading independent asset manager with a 5% market share

Manager of one of the largest global sukuk funds in the world

Monaco:

Doubled AUM in 5 years, targeting UHNWI

DistributionEgypt:

Entering in the Egyptian market acquiring a leading
independent player	12

12

Macro-area update: Asia-Pacific

Market leader in Australia, while focusing on growth and scale in other geographies

Shanghai

Taiwan

Hong Kong

Singapore

2019 Total Assets	€6.1bn
2019 Net Inflows	€1.0bn

Asia:

China/HK:

Granted Private Fund Manager license: first amongst eurozone asset managers

Taipei:

Expanded scope, including FAs and insurance brokerage Singapore:

Scaling up WM capabilities, focus on managing local products & distributing to HNW and Family Offices

Australia:

Asset Management Distribution

Australia

Developing local production through Sigma funds management attracting top tier institutional investors

Expanded considerably AZ NGA franchise through M&A and organic growth. JV activity to continue in 2018

Sestante: launch of own funds ongoing

13

13

Case Study: XP

A snapshot on how a similar platform to Azimut Brazil is currently valued by the market

			XP			Azimut Brazil
2019E Net Flows		•	R$ 90bn				•	R$ 5bn
Latest AUM		•	R$ 350bn				•	R$ 25bn
2019 #Clients		•	1,200,000				•	150,000
FY 2019 Net Profit		•	R$ 925m				• ca. R$ 55m
FY 2020 P/E					∼66x
FY 2021 P/E					∼42x
Market Cap		•	R$ 85.2bn					• …?

Fonte: Company data.

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Updated Sum Of The Parts of the International Business

According to market multiples & precedents, foreign business could be worth ca. € 1.5 - 2 bn

• m

Australia	∼ 800 - 1000	IRR(1): +28%
		CoC: 5.5x
Brazil		∼ 500 - 700
Switzerland and		∼ 100 -
Monaco		200
Others		∼ 125 -
	150
Total International		1.5 - 2.0
Operations (€bn)
Market Cap*		3.1
Azimut (€bn)

Source: Company Data, Bloomberg, market multiples & selected	15
precedent transactions. Note*: at 08/1/2020.

Note (1): assuming a 2011 start, total investments of €317mln, €1.75bn as of today

Being big does not mean being better ... on the contrary

Bn local currencies

Net Inflows 2019E % AuM 2018 Net Income 2019E NI/AuM 2019

	4.6	9.1%	0.37	0.62%
Blackrock	385.6	7.0%	3.88	0.06%
Amundi - Pionner	39.7	2.8%	0.95	0.06%
Schroders	23.4	5.6%	0.64	0.12%
DWS	18.3	2.7%	0.42	0.06%
Man Group	-2.1	-2.2%	0.21	0.20%
Janus Henderson	-25.1	-7.4%	0.42	0.13%
Invesco	-25.7	-2.9%	1.02	0.10%
Franklin Templeton	-28.7	-4.6%	1.08	0.17%
Standard Life Aberdeen	-70.3	-12.4%	0.54	0.09%
Average Peers		-1.3%		0.11%
Delta Average		10.3%		0.51%

6x

Source: Company Data, Factset.

16

US Private Markets initiative (1/3)

Azimut Alternative Capital Partners ("AACP"): the project

Newco set up to build a next generation, diversified and

• multi-affiliateinvestment firm acquiring initially minority GP stakes in alternative asset managers

	Initial focus on U.S. Private Credit, Private Equity,
Infrastructure and RE

Access to strong and consistent cash flow generation  delivered at the GP level, further enhanced in AACP

given greater diversification and lean cost base

Focus on large, growing and at the same time under-

• shopped segment of sub USD 3bn alternative managers with high current positive EBITDA

Team

Jeffry Brown: previously

one of the first Managing Directors at

DyalCapital (Neuberger Berman),

one of the leading minority stake investors in alternative managers.

Prior to Dyal, senior roles

at Bear Stearns AM and MS AM.

Executed over 50

transactions on $135bn

in AUM, including 33 GP

stakes.

Other key senior

managers already

identified joining shortly

Source: Company data

17

US Private Markets initiative (2/3)

The Structure

Azimut

Alternative

Capital Partners

("AACP")

Permanent capital supporting growth and/or generational change

25%-49%	25%-49%
Private		Private
Credit GP		Equity GP

Consistent, high quality EBITDA cash flow from predictable recurring fees and further upside from carried interest / performance fees. Potentially additional products/capacity for our clients worldwide

25%-49%

Infrastruct. /

Real Estate

GP

Azimut targets

$ 7 billion pro-rata AUM

(in excess of $ 20 billion gross AUM) in 10 years

Funded through a

meaningful equity

commitment by Azimut

together with additional (local) leverage and retained earnings

Target to acquire ca. 10

alternative asset

managers, diversified across Private Credit, Private Equity and at a

later stage Real Estate/Infrastructure

Highly positive EBITDA generation of underlying managers

Source: Company data

18

US Private Markets initiative (3/3)

Significant addressable Market…

# of Alternative		AACP
Managers	1,500	Target Market
				300
		257
		AuM	54
		<$3bn		AuM
		AuM
		AuM	<$3bn
		>$3bn
			>$3bn
		Private Equity	Private Credit

… With very limited competition

Source: Company data

19

Where are the others going?

20

Azimut and ESG

The history of Azimut Group in the sustainability context

1995 Launched In Italy Azimut Solidarietà (today Azimut Solidity), the first Italian ethical investment fund that donates part of its returns to charity.

2014

2016

2019

In Luxembourg, launched the AZ Multi Asset Sustainable Hybrid Bonds segment, dedicated

to foreign institutional customers (open to Italian retail clients in Italy from 2019). The first ESG compliant fund investing in hybrid bonds in Europe.

Launched In Italy the Luxembourg multi-asset segment AZ Multi Asset Sustainable Absolute Return

AZ Multi-Asset Sustainable Absolute Return becomes AZ Multi Asset Sustainable Equity Trend. Activated the personalized service for the transfer of proceeds to non-profit organizations / foundations, making the product one of the first in Italy to offer this service.

Launched in Brazil the AZ Quest Azimut Impacto fund financing social impact initiatives

(dedicated to environment, education and community development). It is the first fund

launched in Brazil accessible to retail investors, allowing investors to participate in social impact initiatives.

Launched in Italy the Luxemburg fund AZ Equity - Global ESG.

Launched in Egypt the ATAA Fund, charitable fund assisting people with disabilities. It is the first of its kind in Egypt.

Azimut Sustainable project involving the AZ Fund Management SA product range

Fonte: Company data.

21

Azimut and ESG

Attention to sustainability in Italy

1995 - Azimut Solidity

In 1995, launched Azimut Solidarietà (today Azimut Solidity) the first Italian ethical investment fund donating part of its returns to charity.

The Fund has 8 partners engaged in social and humanitarian activities (Unicef, Missioni Don Bosco,

Fondazione Exodus, Missionari Comboniani, Gaslini among the others). Its investors can choose one or more as recipients of the proceeds.

Azimut also contributes by donating part of its commission directly to the partners, proportionately to the choices of the investors.

2016 - AZ Multi Asset Sustainable Equity Trend

Since 2016, AZ Multi Asset Sustainable Equity Trend has enabled Group customers to identify and select the charity entities that they consider "most active" in their regions and to donate them the income generated by their investments.

This initiative has also allowed the creation and development of active synergies between the Financial Advisors of Azimut Capital Management and the local foundations / non-profit organizations, through events, conferences, presentations, exhibitions, etc.

More than 45 non-profit organizations / foundations selected and involved in the project;

Some examples of the most funded non-profit organizations / foundations: Associazione Piano Terra Onlus (Lazio) - Slums Dunk (Lombardia / Triveneto), Queen of Piece (Lombardia).

Fonte: Company data.

22

Azimut and ESG

Azimut Sustainable Initiatives

At the level of AZ Fund Management product range, the main interventions will be:

Q4

2019

2020Q1

On

Going

The integration of ESG principles in the investment process and risk management thanks to the creation of an internal ESG rating. Target to reach €7bn (ca. 30% of the entire AZ Fund Management assets) by end- 2019 has been surpassed and is now at €9bn. These assets are invested in companies with a BBB rating or above, based on the ESG criterias of MSCI.

The creation of a line of full SRI sectors and thematic products

The establishment of a Sustainability Committee within the Investment Department.

This is the largest intervention ever made in Italy

in terms of converting investments to ESG

Fonte: Company data.

23

2020: updated guidance

Main Trends for 2020	Upgraded guidance 2020 (under normal market conditions)

Recurring Revenues
Italy
International
Private Markets
Variable Fees	?
Distribution costs (as % of Recurring Revenues)
Rebate
Recurring Revenues
Overheads
Fixed costs	+/-5% vs. 2019(1)

Net Profit Floor at

• 300 mn

Source: Company data.

24

(1) Excluding any extraordinary operations

Contacts

Investor Relations Contacts

Vittorio Pracca

Tel. [phone]

Email: [e-mail]

Galeazzo Cornetto Bourlot

Tel. [phone]

Email: [e-mail]

www.azimut-group.com

Disclaimer - Safe harbour statement

This document has been issued by Azimut Holding just for information purposes. No reliance may be placed for any purposes whatsoever on the information contained in this document, or on its completeness, accuracy or fairness. Although care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable, the contents of this presentation have not been verified by independent auditors, or other third parties.

Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or any of its members, directors, officers or employees or any other person. The Company and its subsidiaries, or any of their respective members, directors, officers or employees nor any other person acting on behalf of the Company accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

The information in this document might include forward-looking statements which are based on current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and investments, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. No one undertakes to publicly update or revise any such forward-looking statement.

The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.

Any forward-looking information contained herein has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary. This document does not constitute an offer or invitation to purchase or subscribe for any shares and/or investment products mentioned and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

The information herein may not be reproduced or published in whole or in part, for any purpose, or distributed to any other party. By accepting this document you agree to be bound by the foregoing limitations.

The Officer in charge of the preparation of Azimut Holding SpA accounting documents, Alessandro Zambotti (CFO), declares according to art.154bis co.2 D.lgs. 58/98 of the Consolidated Law of Finance, that the financial information herein included, corresponds to the records in the company's books.

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