ir top lugano small & mid cap investor day

IR Top Lugano Small & Mid Cap Investor Day

21 September 2018


Storyline

2

Long tradition of Investment Bank and Simple Shareholders’ Composition

Equita Group - Shareholders’ Composition

ManagementLock-up agreements

24-months lock-up for all managers at IPO

Shareholders’ agreement among senior management with lock-up till renewal of the Board (2020)

48-months lock-up for 20 professionals that bought shares at IPO

53,9%

9,5%

36,6%Management

Treasury Shares

Float


Independent Investment Banking

3

Diversified and Integrated Business Model, with a Unique Position in the Market

High access to capital markets and independencyFour business lines supported by a well-recognized research team

ST PT

IBAAM

Research Team#1 Research team continuously supporting

the other 4 business lines

InvestmentBanking

Outstandingteam and high

value added products

Sales & TradingLeading Italiantrading floor

Alt. AssetManagementDiversified areasto catch marketopportunities

Proprietary TradingProfitable desk

with limited risk

Fully independent player and absence of conflict of interestlike pure players in Advisory

Deep access to capital markets like global investment banks


46%

21%

28%

5%

Sales & Trading Proprietary Trading

Investment Banking Alternative Asset Management

29%

17%

48%

6%

Key Financials

4

€36.7m(+47% vs. 1H 2017)

Net Revenues

€7.6m(+67% vs. 1H 2017)

Net Income TCR

Net Revenues breakdown by business lineKey Figures(as of 30 June 2018)

1H 20181H 2017

25.7%(as of 30 June 2018)

High double-digit growth

High double-digitgrowth

Healthy capital structure with low capital absorption

25.0€ m

36.7€ m

Total AuM

€601m(as of 18 September 2018)

Focus on growthin the Alternative

Asset Management

Companies covered by the Research Team (o/w Italian)

Investments in Private Equity and Private Debt

Capital raised for our clients (both equity and debt)

Active clients in Sales & Trading

6

>300

€1.5bn

166(121)

Professionals and staff136

Snapshot of 1H 2018 Consolidated Results


15,4%

12,1%9,9%

7,8%5,6% 5,5% 5,3% 4,3% 4,3% 4,1%

5

Note: (1) Thomson Extel Surveys (based on fee paid; including Mid-Small Caps); (2) Brokered volumes on MTA equities in 1H 2018; source: ASSOSIM.

Trading floor ranked at the top of investors’ surveys, confirming the Equita leading position in Italy. Market share in terms of brokered volumesamong the largest in Italy, overtaken by only large banking groups with significant retail network activities

Sales & Trading

Among the undisputed leaders in italy

More than 20 salesmen constantly in touch with more than 400institutional clients for foreign and Italian stocks all over the world

In the last 3 years:

• ~200 roadshows in Italy and ~200 roadshows abroad

• more than 3,000 institutional investors met

Ranking of Brokers (volumes, third parties on MTA)(2)

BEST BROKER IN ITALYEquity Sales(1)

2°: 20183°: 20172°: 20162°: 20151°: 20141°: 2013

BEST BROKER IN ITALY Trading Execution(1)

2°: 20182°: 20171°: 20161°: 20151°: 20141°: 2013

Leading sales-force in Italy dedicated to institutional investors

Ranking 2013-2018 Extel – All Brokerage Firms; Italy (1)

Evolution of brokered volumes (third parties on MTA)(2)

579

419 460

250 211

2015 2016 2017 1H 2017 1H 2018

CAGR 15-17: (10,8)%

1H’17-18: (15,4)%No. 1 excluding large banking groups with

significant retail network activities

http://www.google.it/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOuZt5Ghh8YCFScW2wodqu4A5Q&url=http://it.123rf.com/archivio-fotografico/coccarda.html&ei=n0t5VavOK6es7Aaq3YOoDg&psig=AFQjCNF40YAnVvFe1ifCDw9Dawj2MNSoUg&ust=1434098941721542





Proprietary

Desk

Volatility / Market Making

Specialist & Appointed

Intermediary

Fixed Income

Sales & Trading

RiskArbitrage

Directional

6

Proprietary Trading

1

2

34

5

Services offered and breakdown

Diversified and low-risk proprietary desk, aimed at providing additional returns for the Group with Directional trading, and sustain liquidity andperformance for its clients with Client-Driven & Market Making services

Advisory6

Client-Driven &Market Making

Directional activities based on proprietary tradingstrategies to take advantage of market trends and thatembed, generally, a certain level of risk

Client-Driven activities based on execution of directclient orders with positions closed before Close-of-business (no exposure on Equita books at the end of theday)

Market Making activities based on strategies aimed atsustaining liquidity with bid-ask or only bid positions

Directional

Client-Driven & Market MakingDirectionaltrading

IR Top Lugano Small & Mid Cap Investor Day 7

Investment Banking

“One-stop-shop” approach thanks to a complete range of products and services offered

The largest independent investment bank in Italy, offering a complete range of products and services to institutions and corporates, andgenerating opportunities for the other business lines of the Group

Equity Capital Markets

• IPO• Private Placements• Tender Offers• Rights Issues

Debt Capital Markets

• IG’s bond’s Issues• US private

placements• Retail public

offering• HY bonds

Debt Advisory

• Debt-raising• Selection and

negotiation of preferred funding offers

• Structuring of «self-arranged» club deals

Debt Restructuring

• Debt renegotiation• New money finding• Liquidity crisis

management• Creditors’advisory• Corporate

Restructuring

Corporate Broking e Specialist

• Advisory to BoD• Market

performance analysis/market intelligence

• Target Investors analysis

• Specialist

M&A e Advisory

• Merger• Sell & Buy Side

process• Fairness opinions• Financial Sponsor

Coverage

3 5 7 10 11 13 16 17 20 22 23

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Advisory M&A & Corporate Banking

Financial Institutions

Debt AdvisoryDebt Capital

MarketsFinancial Sponsors

Evolution of services and number of professionals in the last 10 years


11

22 20

8

25

16

3

66

7872

41

78

41

20

2013 2014 2015 2016 2017 1H'17 1H'18

CVT (€ bn) # of deals

31

5056 58

46

17

32

381

543 583

829 817

390333

2013 2014 2015 2016 2017 1H'17 1H'18


Market trends in Italy

8

Investment Banking (cont’d)

Note: (1) Market trends include IPOs, Convertibles and Follow-on deals. Source: Dealogic; (2) Market trends are made excluding banks/ass. Source: Bondradar; (3) Source: M&A in Italy, KPMG report

Despite decreasing investment banking market volumes, Equita performed very well and improved its positioning in all of the key business areas

DCM (2)ECM (1) M&A (3)

30 2924 22

45

18

9

66

47

3842

67

2720

2013 2014 2015 2016 2017 1H'17 1H'18


Selected Equita transactions 1H 2018

FEBRUARY 2018

BOND 3.5% 2018-2025 ISSUE ON MOT

( € 180 mln )

PLACEMENT AGENT AND APPOINTED

BROKER

FEBRUARY 2018

BOND 1.625% 2018-2025

( € 550 mln )

CO – LEAD MANAGER

APRIL 2018

BOND 2.625% 2018-2025 ISSUE ON MOT

( € 165 mln )PLACEMENT AGENT

AND APPOINTED BROKER

IPO(€ 140 mln)

GLOBAL COORDINATOR,

NOMAD AND

SPECIALIST

MARCH 2018

IPO(€ 600 mln)

JOINT

BOOKRUNNER

FEBRUARY 2018

IPO(€ 150 mln)

JOINT GLOBAL

COORDINATOR AND

BOOKRUNNER

MAY 2018

NB AURORA

MAJORITY SALE

FINANCIAL ADVISOR

TO AMBIENTA AND L

CATTERTON

SEP 2018

ACTIVIST CAMPAIGN TO SUPPORT A

MAJORITY BOARD SLATE

FINANCIAL ADVISOR TO

ELLIOTT

MAY 2018

MAJORITY SALE

FINANCIAL ADVISOR TO

THE SHAREHOLDERS IN

THE DISPOSAL OF A

CONTROL STAKE TO

APAX FRANCE

MAR 2018


Closed-ended private debt fund(€100m raised)

Investments in debt of Italian mid-size companies with strongcompetitive positions and exportdriven

Asset Under Management evolution

9

Alternative Asset Management

Initiatives

A new business line providing traditional portfolio management activities along with innovative private debt and private equity portfoliomanagement activities, catching new market opportunities and diversifying the entire business model of Equita

Private Equity

Portfolio Management Private Debt

Equita PrivateDebt Fund

JV 50%/50% between Equita andPrivate Equity Partners

First Business Combination in 2018with Industrie Chimiche Forestali(ICF)

EPS Equita PEP SPAC 2 with €74mcash to be invested in a secondbusiness combination

Mandate from an Italian bankinggroup

Three lines focused on Italianequities

Management of 3 discretionary accounts

SPACBlueglen Equita Total Return Fund (BETR)

Partnership with Blueglen, aEuropean multi-strategyalternative asset manager

Specific investment strategiesfocused on European credit

Equita as exclusive distributor inItaly

Credit UCITS Fund

292

404 379

66

100100

47

131159

251

358

504 526

2013 2014 2015 2016 2017 YTD 2018

Portfolio Management Private Debt BETR

Note: (1) as of 19 September 2018.

€75m reduction due to the business

combinationwith ICF

2013 2014 2015 2016 2017 YTD 2018(1)

150 75

+

AuM (SPAC)

Breakdown (€m)

131 159 251 358 654 601

Total (€ m)


Note: (1) Small cap (market cap < €0.5bn), Mid Cap (market cap > €0.5bn and < €2.5bn), Large Cap (market cap > €2.5); (2). Source: Thomson Extel Surveys and Institutional Investor

Research Team

Italian companies covered by the Research Team

Ital

ian

107 108 107117

112117 121

2012 2013 2014 2015 2016 2017 1H 2018

44%

35%

21%

Large Cap

Mid Cap

Small Cap

The Research Team of Equita covers approx. 96% of the Italian market in terms of capitalization

Research Team quality(2)

Thanks to the leading position inEquity Research, Equita confirms its

competitive advantage post MiFID II

# of companies covered Market size covered(1)

Broad coverage of the Italian market, including small and medium companies, with 121 Italian and 45 foreign stocks as of 30 June 2018.Equita constantly recognized among the top Italian teams for the breadth and high quality of its research

Institutional InvestorsItalian Research

Team

1°: 20181°: 20172°: 20161°: 20151°: 20141°: 2013

ExtelCountryAnalysis

2°: 20182°: 20172°: 20162°: 20151°: 20141°: 2013

Extel & Institutional Investors Rankings (2)

Ab

road

+45 foreign stocks covered

(as of 30 June 2018)






€ m 2018 2017 Growth

Sales & Trading 10,7 11,4 (6%)

% of revenues 29% 46%

Proprietary trading 6,2 5,3 17%


Investment Banking 17,4 6,9 152%


Alternative Asset Management 2,4 1,3 84%

% of revenues 7% 5%

Net Revenues 36,7 25,0 47%

Personnel costs (1) (17,3) (12,5)

Fixed component (7,6) (6,9)

Other administrative expenses (8,4) (5,6)

Profit before taxes 11,0 6,9 59%

Income taxes (3,5) (2,4)

Net income 7,6 4,5 67%

Cost / Income ratio 70% 72%

ROTE 28% n.a.

TCR 26% 18%

First Half

(1) Net of compensation to directors and statutory auditors

P&L

14

Profit & Loss 1H 2018 vs 1H 2017

Net Revenues growth of +47% in 1H 2018 driven by thepositive performance of all the business lines, except forthe Sales & Trading which, by the way, limited thedecline expected from MiFID II

Personnel Costs increased by +39% in 1H 2018,including the expenses related to the Retail Hubconsolidation since June 2018

Comps/Revenues ratio at 47% (from 50% in 1H 2017) toabsorb part of the non-recurring items in otheradministrative expenses

Other administrative expenses (€8.4m in 1H 2018 vs€5.6m in 1H 2017) increased mainly due to non-recurring costs related to the MTA/STAR listing processand the integration of the Retail Hub

Net Income increased by +67% in 1H 2018, thanks tothe growth in Net Revenues, coupled with less thanproportional growth in Personnel Costs and some taxbenefits which occurred in 1H 2018 (lower IRES andACE)

Comments


Business diversification

M&A Growth

Dividend distribution of €0.20 per share

Commitments at IPO Achievements to date

Commitments at IPO vs. achievements to dateKey objective to strengthen positioning as leading Italian independent Investment Bank with strong expertise in capital markets and focus onItalian Mid Caps is on track. Total return of +19.3% from IPO to date(1), higher than returns on FTSE MIB (-4.1%) and FTSE Italia STAR (+4.2%)

Attract new talent

Transition to STAR Segment

Dividend of €0.22 per share paid in May

2018, higher than promised at IPO

Number of professionals in strategic areas

grew by 17% (as of 30 June 2018) vs. IPO

(137 vs. 117)

With a simplified shareholding’ structure (1 class

of shares) Equita is now ready for the transition

from AIM Italia to MTA, STAR segment (process

to be completed by the end of 2018)

Acquisition of Retail Hub (Nexi’s Brokerage and Market Making operations)

Note: (1) As of 14 September 2018


An independent firm with an in-depth knowledge of the Italian and international capital markets

Committed and entrepreneurial management team, with a significant experience in the sector and a long-lasting career within the Company

Outstanding Research Team & Brokerage services, with a leading position in the Italian market

Wide range of Investment Banking services with high growth potential

Successful launch of Alternative Asset Management with further growth opportunities

Diversified business model with a solid financial performance and low capital absorption

1

2

3

4

5

6

Key Highlights of the Equita Group’s Equity Story

Equita Group S.p.A. - Via Turati,9-20121 Milano Tel +39 02 6204.1 - Fax +39 02 29001208/1202

[email protected] - www.equitagroup.it

mailto:[email protected]

ir top lugano small & mid cap investor day

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