Azimut Holding: 1Q 2018 results

PRESS RELEASE

Azimut Holding: 1Q 2018 results

Total Assets: € 50.6 billion (€ 51.1 billion at April 2018)

Net Inflows in the quarter: € 874 million (€ 978 million at April 2018) Consolidated revenues: € 182.3 million

Consolidated net profit: € 26.4 million

Milan, 10 May 2018

Azimut Holding's (AZM.IM) Board of Directors approved today the 1Q 2018 results, highlighting the following:

•  Consolidated Total Revenues in 1Q18 equal to € 182.3 million (vs. € 214.7 million in 1Q17)

•  Consolidated Operating Profit in 1Q18 equal to € 38.8 million (vs. € 83.5 million in 1Q17)

•  Consolidated Net Profit in 1Q18 equal to € 26.4 million (vs. € 72.9 million in 1Q17)

Total Assets at the end of March 2018 reached € 50.6 billion (€ 51.1 billion as of April 2018), including assets under custody and third parties' funds.

Net Financial Position as of March 31, 2018 was positive for € 130.4 million, (essentially in line compared to the € 134.9 million at the end of December 2017). As a reminder, the AGM approved the distribution of a dividend per share of €2.00 gross of tax (vs. €1.00 per share in 2016). The €2.00 dividend will be paid 50% in cash and 50% in existing treasury shares (see PR dated 8/03/2018 and 24/04/2018).

Recruitment of financial advisors and private bankers in Italy remained positive: during the first quarter of 2018 Azimut and its networks recorded 41 new hires, bringing the total number of FAs to 1656.

Lastly, based on the declarations provided by the Independent Directors and Statutory Auditors, as well as the information available to the Company, the Board evaluated, pursuant to art. 144-novies, paragraph 1-bis of the Issuers Regulation, the criteria for independence envisaged by art. 147-ter, paragraph 4 and 148, paragraph 3 of the TUIF and the Voluntary Code of Conduct of the aforementioned individuals.

Sergio Albarelli, Azimut CEO, commented: "The uncertainty and high volatility of financial markets in the first few months of the year significantly penalized our results, especially for what regards variable fees. However, the Group remains strong and the flexibility of our business model allows us to look with confidence at the rest of the year while continuing to generate value for our shareholders. The recent AGM has in fact approved a dividend of 2 euro per share; the highest yield amongst FTSE MIB companies and equivalent to a payout of more than 100%."

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, that the financial information herein included, corresponds to the records in the company's books.

Azimut is Italy's leading independent asset manager (active since 1989). The Parent Company Azimut Holding was listed on the Italian stock exchange on 7 July 2004 (AZM.MI) and, among others, is a member of the main Italian index FTSE MIB and of the Eurostoxx 600. The shareholder structure includes over 1,700 managers, employees and financial advisors, bound by a shareholders' agreement that controls ca. 15% of the company. The remaining is free float. The Group comprises various companies active in the sale, management and distribution of financial and insurance products, with Registered Offices in Italy, Luxembourg, Ireland, China (Hong Kong and Shanghai), Monaco, Switzerland, Taiwan, Brazil, Singapore, Mexico, Australia, Chile, USA, UAE, Iran and Turkey. In Italy, Azimut Capital Management SGR sells and manages Italian mutual funds, Italian alternative investment funds, as well as being active in the discretionary management of individual investment portfolios. Furthermore, Azimut Capital Management SGR, following the demerger by incorporation of Azimut Consulenza SIM, distributes Group and third party products in Italy via a network of financial advisors while Azimut Global Counseling provides consulting services. Overseas main operations are AZ Fund Management SA (founded in Luxembourg in 1999), which manages the multi strategy funds AZ Fund 1 and AZ Multi Asset and the Irish AZ Life DAC, which offers life insurance products.

Contacts - Azimut Holding S.p.A.
www.azimut-group.com
Investor Relations	Corporate Communications
Vittorio Pracca	Paola Moscatelli
Tel. [phone]	Tel. [phone]
Email:[e-mail]	Email:[e-mail]
Viviana Merotto
Tel. [phone]
Email:[e-mail]

CONSOLIDATED RECLASSIFIED INCOME STATEMENT

(Data in €/000) 1Q 2018 1Q 2017 2017
Acquisition fees and commissions Recurring fees Variable commissions Other income Insurance revenues	1,764 156,333 9,588 2,142 12,477	2,931 148,217 49,507 2,293 11,775	10,247 606,598 136,379 8,456 48,864
Total revenues	182,304	214,723	810,544
Commission expense General overheads/Administrative expenses Depreciation, amortisation/provisions	(90,883) (48,826) (3,819)	(84,363) (42,863) (3,979)	(337,456) (178,534) (16,465)
Total costs	(143,528)	(131,205)	(532,455)
Operating income	38,776	83,518	278,089
Profits from financial operations Net Non operating costs Interest expense	(3,943) (910) (1,832)	(427) (975) (2,825)	(13,057) (8,114) (9,646)
Profit Before Taxation	32,091	79,291	247,272
Income taxation Deferred taxation	(4,804) 3,090	(4,248) (479)	(22,854) 1,491
Net Profit	30,376	74,564	225,909
Minorities	3,938	1,623	11,123
Consolidated Net Profit	26,438	72,941	214,786

CONSOLIDATED NET FINANCIAL POSITION

Data in €/000	31/03/2018	31/12/2017	31/03/2017
Due to banks	(10,000)	(10,000)	(20,000)
Securities issued	(348,607)	(353,816)	(578,073)
Total debt	(358,607)	(363,816)	(598,073)
Cash and cash equivalents	489,022	498,687	834,274
Net Financial Position	130,415	134,871	236,201

CONSOLIDATED INCOME STATEMENT

Note: The figures above have been reclassified versus what already published in the past due to the retrospective application 15 principles.

(Data in EUR/000)	1Q 2018	1Q 2017	2017
Commission income Commission expense	173,126 (80,668)	205,163 (75,975)	774,331 (311,345)
Net Commissions	92,458	129,188	462,986
Dividends and equivalents Interest income and equivalents Interest expense and equivalents Net result from trading activities Profit/loss from the sale of: b) financial assets at fair value with an impact on overall profitability c) financial liabilities Net result from other financial assets and liabilities at fair value impacting the P&L account a) assets and liabilities designated at fair value b) other compulsary financial assets valued at fair value Insurance net premium income Net income (loss) from financial assets at fair value entered on the P&L account Change in technical provisions when the investment risk is borne by the insured parties Surrenders and claims	0 202 (2,050) 0 0 (3,797) (2,000) (1,797) 361 44,401 19,883 (55,086)	128 202 (3,073) 0 0 204 (338) 542 1,426 58,479 4,147 (54,458)	258 1,071 (10,725) (7,917) (7,917) (6,225) (4,421) (1,804) 3,531 184,679 23,467 (172,924)
Net Margin	96,372	136,243	478,201
Administrative expenses a) personnel expenses b) other expenses Value net adjustments on tangible assets Value net adjustments on intangible assets Provisions for risks and charges Other administrative income and expenses	(59,133) (22,685) (36,448) (564) (2,609) (2,497) 521	(52,081) (19,586) (32,495) (578) (3,284) (937) (72)	(210,557) (83,255) (127,302) (2,414) (13,444) (6,383) 1,877
Gross operating profit	32,090	79,291	247,280
Profit (loss) on equity investments	0	0	(8)
Profit (Loss) before tax	32,090	79,291	247,272
Income tax	(1,714)	(4,727)	(21,363)
Net profit (Loss)	30,376	74,564	225,909
Minorities	3,938	1,623	11,123
Consolidated net profit (loss)	26,438	72,941	214,786
Note: The figures above have been reclassified versus what already published in the past due to the retrospective application of the new IFRS 9 and IFRS

CONSOLIDATED BALANCE SHEET

ASSETS (data in EUR/000)	31/03/2018	31/12/2017	31/03/2017
Cash and cash equivalents Financial assets at fair value with impact on the P&L b) financial assets designated at fair value c) other compulsary financial assets valued at fair value Financial assets at fair value with an impact on overall profitability Financial assets valued at amortised cost Equity investments Tangible assets Intangible assets of which: '- goodwill Tax assets a) current b) prepaid Other assets	23 6,730,249 6,458,527 271,722 13,523 248,008 2,357 7,441 555,770 - 192,943 82,810 28,309 54,501 201,453	28 6,974,029 6,700,283 273,746 11,789 265,211 1,343 8,103 557,410 - 193,566 80,219 29,560 50,659 208,474	26 6,964,857 6,689,224 275,633 9,723 584,089 936 8,288 517,595 - 191,490 82,047 33,778 48,269 200,502
Total Assets	7,841,634	8,106,607	8,368,063

LIABILITIES (data in EUR/000)	31/03/2018	31/12/2017	31/03/2017
Financial liabilities valued at amortised cost a) Debts b) Securities Techical provisions when the investment risk is borne by the insured parties Other technical provisions Financial liabilities at fair value Tax liabilities: a) current b) deferred Other liabilities Employee severance indemnities Provisions for risks and charges c) other Capital Treasury shares (-) Capital instruments Share premium reserve Reserves Valuation provisions Profit (Loss) for the period Equity attributable to minority interests	363,508 14,901 348,607 207,974 0 6,344,164 70,731 8,061 62,670 177,172 2,926 36,890 36,890 32,324 (118,031) 36,000 173,987 483,190 (9,468) 26,438 13,829	374,069 20,253 353,816 227,857 0 6,605,461 68,151 6,462 61,689 180,539 2,965 35,377 35,377 32,324 (130,028) 36,000 173,987 275,169 (9,642) 214,786 19,592	606,946 28,873 578,073 246,827 350 6,545,792 66,293 5,891 60,402 175,524 3,397 31,642 31,642 32,324 (106,100) 70,951 173,987 433,444 (2,885) 72,941 16,630
Total liabilities and shareholders equity	7,841,634	8,106,607	8,368,063

Note: The figures above have been reclassified versus what already published in the past due to the retrospective application of the new IFRS 9 and IFRS 15 principles.