FinecoBank S p A : Carnegie Digital Savings Platforms Seminar (virtual)

Carnegie Digital Savings

Platforms Seminar

Paolo Di Grazia

Deputy General Manager

June 9th 2023

FINECO. SIMPLIFYING BANKING.

Introducing Fineco, a leading FinTech Bank in Europe

Integrated offer of Banking, Brokerage and Investing via multi-channel approach, for sustainable growth

Corporate purpose: offer customers excellent services and products through a multi-channel system at a fair price

1Q23 weight on total revenues for each product area

Banking	56%

• 100% of operations can be performed online or from apps
• Lending offered only to existing base of retail clients (no corporates)
• Strong focus in building a low-risk and high-quality portfolio thanks to internal IT culture and Big Data analytics

Investing

Banking

Brokerage

ONE-STOP solution

Investing	25%

• FAM (Fineco Asset Management, with 28.6bn(1) TFA) key in delivering quality investment solutions for our clients
• More than 6,350 mutual funds by more than 70 Asset Managers worldwide
• Physical distribution network: 2,935(2) PFAs and 428(2) Fineco Center

Brokerage	18%

Direct access to 25(2) global markets, bonds, ETFs, futures and 21(2) currencies both online and mobile

Our Key figures

TFA (May 2023)	Net Sales (May23 YTD)	adj. Net Income 1Q23	adj. Cost/Income 1Q23	CET1 Ratio 1Q23
€113.9 bn	€4.4 bn	+19.1%	25.0%	21.8%
€147.3 mln y/y
with 1.5 mln clients	€10.3 bn in FY22	€428.8 mln in FY22

(1) Figures as of May 31st, 2023

2 (2) Figures as of March 31st, 2023

Current environment is further enlarging our growth opportunities

Current situation is accelerating the structural trends reshaping our society…

DEMAND FOR ADVICE

Increasing participation in

financial markets by Italians is building up a bridge among investing and brokerage

DIGITALIZATION	DISRUPTION IN
TRADITIONAL BANKS
Society structurally moving	Traditional banks not ready
for the new paradigma:
towards a more digitalized world:
flight-to-qualityis gaining
a way of non-return
momentum

…and strengthening our long term growth opportunities

Strengths of our business model:
Fintech DNA:	quality, efficiency, innovation
we were born already digital	Cyborg advisory:

our PFAs already used to assist

clients in a digital world

• Robust Net sales
• Boost in Investing supported by FAM growth
• Structurally higher Brokerage
• Acceleration in high-endclients' acquisition
• Decreasing Cost/Income

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Deep dive on our transactional liquidity

Our business model has fully fledged banking platform used by all our clients for their daily activities

Granular and retail deposit base, very sticky thanks to the quality of our customer experience

97%

• 19k
• 4.8k

75%

Retail clients

Avg deposit ticket

(€ 140k for private and € 15k for non private clients)

Median deposit ticket

(€ 47.3k for private banking and € 4.5k for non private clients)

Guaranteed deposits by DGS (<€100k)

50% Salary credited in current accounts

Salary credit total inflows, € bn

Stock Deposits, bn				12	13	14	15
	7	8	9	9	10	11
7		Salary credit
											more than doubled
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022	over the last 10 years
12.0	12.5	13.7	15.6	18.5	19.9	22.1	25.6	28.0	29.5	30.6

TRANSACTIONAL LIQUIDITY

89% (vs 85% in Dec.22)

Relentless growth throughout the years

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		Deposits growth since 2007
33		COVID
	pandemic
30
28
25
23	Financial	Sovereign
20
18	crises	crises
15
13
10
8
5
3
Jan-07Mar-07May-07	Jul-07Sep-07Nov-07Jan-08Mar-08May-08Jul-08Sep-08Nov-08Jan-09Mar-09May-09Jul-09Sep-09Nov-09Jan-10	Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Jul-12Sep-12Nov-12Jan-13Mar-13May-13Jul-13Sep-13Nov-13Jan-14Mar-14May-14Jul-14Sep-14Nov-14Jan-15Mar-15May-15Jul-15Sep-15Nov-15Jan-16Mar-16May-16Jul-16Sep-16Nov-16Jan-17Mar-17May-17Jul-17Sep-17Nov-17Jan-18Mar-18May-18Jul-18Sep-18Nov-18Jan-19Mar-19May-19Jul-19Sep-19Nov-19Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21May-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22Jul-22Sep-22Nov-22Jan-23Mar-23

Focus on FAM: delivering on the strategic discontinuity

Key to sustain AUM margins thanks to its strong operating leverage and to a more efficient value chain

FAM progressively taking control of the value chain…

FAM priorities

bn

• Strong commercial traction in any market environment
• Increasing contribution to Fineco's AUM net sales

FAM RETAIL NET SALES

			2.0
		1.4	132%
0.8	0.9	133%
86%	83%
1Q22	4Q22	1Q23	May.23 YTD

FAM retail as % of Fineco AUM net sales

May23: 241 mln

(134% of Fineco AUM net sales)

✓ Thanks to the full control of the
value chain, FAM can offer at the
same time both an efficient pricing
for clients and retain higher
margins
✓ Further evolution in the Global
Defence solutions after the strong
success of the previous waves with
a new product innovation: launch
of	the	Global	Defence

…and becoming the cornerstone of our Investing business

Multistrategy, a fully in-house

developed solution allowing clients to

bn

FAM AUM STOCK

build a protected exposure

towards equity

Retail class

FAM funds underlying

FAM retail as % of Fineco total AUM

FAM retail as % of Fineco AUM funds

1. 25.9

1. 15.8

10.410.1

Mar.22 Dec.22

28.4%	30.3%

42.4% 46.6%

1. 28.6

1. 18.1

10.510.5

Mar.23 May.23

32.2%	33.0%

48.4% 49.4%

Higher penetration on

Fineco's AUM driven by strong net sales dynamics

✓ FAM has launched its investment

solutions based on passive funds

and ETF with diversified solutions

and different risk profiles

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