Azimut Solidity 2016 - AZ Multi Asset - Azimut Group

Azimut Solidity 2016 - AZ Multi Asset - Azimut Group
Azimut Group
          Analyst Update

 Montecarlo, January 9th 2020
Azimut Solidity 2016 - AZ Multi Asset - Azimut Group
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
Azimut Solidity 2016 - AZ Multi Asset - Azimut Group
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 Solidity 2016 - AZ Multi Asset - Azimut Group
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-19     Mar-19     Apr-19     May-19   Jun-19   Jul-19   Aug-19   Sep-19   Oct-19   Nov-19

                                                          Azimut Net WAP      Risk Free




Source: Company data at 31/12/2019 and Bloomberg
Italian industry: FIDMGEND. Risk free: MTSIBOTR Index.                 4
Azimut Solidity 2016 - AZ Multi Asset - Azimut Group
Italy Private Markets Update
                                                                                                             AuM Today   Total AUM
                                             Investment Fund             Type        Country   Size (€M)
                                                                                                               (€M)         (€M)

                                IPO CLUB                                   PE          ITA        150           150
                                ANTARES AZ1                                PD          ITA        128           128

      Currently                 CORPORATE CASH                             PD          ITA         50           50        €0.7-0.8
      Managed                   FINANCE FOR FOOD                           PE          ITA        150           85          bln
                                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                     €1.1-1.2
    raising /
                                PRIVATE DEBT (reopening)                   PD          ITA         50                       bln
 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
                                                                                                                          €2.6-2.9
  (late 20-early                Debt – 5 projects                          PD                  1.400-1.500
                                                                                                                            bln
        21)                     Real Assets – 2 projects               Real Assets              800-900
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
Azimut Solidity 2016 - AZ Multi Asset - Azimut Group
Italy Private Markets Update

                                                                                                                                                                                   Club Deal:
    Commitment over € 1 bn AUM
                                                                                                                                                                                   6 0 mln €
                                                                                                                                  250                                        Italian Wine Brands
       6500*               284                                                                                                                                               Pharmanatura
       clients         investiments                                                                                                                                          Digital Value
                                                                                                                                                                             EdtechX
                                                                                                                                                                             6 0 mln€
                                                                                                                                                                             IPO C3
                                                                 150
                                                                                                   140                                                                       Club Deal Project Steel
                                            127                                      120                                                                                     Club Deal Project Pack



                            70                                                                                                                                              85
                                                                                                                                                          50                                     56
                                                                                                                      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               19                  155            2.140             4.304                60          40                    21                  11              12.000

     N°Investiments         7               14                    9                    -        Funding               Funding       -                   20                  -                  234
                                                                                                 phase                 phase




                                         +115.3%                                     +72%                         + 80%                              N e w Entry
                                        From 1 8 July 2 0 1 7                 From 8 November                   From December                      Aerospace Technologies
                                                                                   2018                             2014




                                                                                                +4 6 9 % * * *                  +2 . 6 0 8 % **
                                                                + 100%**                                                         Turnover growth
                                                                                              Turnover growth since
                                                            From the first half of                    2015
                                                                   2013                                                            since 2 0 1 6



Data as of December 2019. Source: AGC and Mamacrowd.
* Excluding Other (Start up). ** Estimated value at fair market                                     6
value 29. *** Company operations P101
Italy Private Markets Update


 Venture Capital Fund – Italia 500
                                                          • Seed
                                      Investment type     • Early Stage
                                                          • Late Stage
                                      Target Fund Size    • EUR 40 million
                                      Min. subscription
                                                          • EUR 5.000
                                           amount
                                                          • 10 years
                                           Tenor           (possibly
           Asset Allocation
                                                           extendable)




                              Later
Start-up
                              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                                Net Inflows in 2019 at €4.6bn, almost entirely
                                                                          59.1
                                                                                 organic, from both Italy and International

                                                               50.8                Italy on an organic basis is 130% higher
                                                    50.4
                                                                                   than 2018
                                                                          17,1
                                    43.6                                           International continues to contribute
                                                    12,5       13,8                thanks to global diversification
                     36.7            7,7                                         Net Performance above industry : +8.5%

                     4,3
     30.0
                                                                                 Organic (ex. M&A) Net Inflows (€bn):
      2,1

                                                                                                               4.1
                                                                                   4




                                                                          42,0
                                                                                   4




                                    35,9            37,9       37,0
                                                                                   4




                     32,4                                                          4




     27,9                                                                          4




                                                                                   4       3,5
                                                                                   3




                                                                                   3




                                                                                   3




     2014           2015            2016            2017       2018       2019             2018                2019




Source: Company data
Note*: through AZ International Holdings                              8
The record year at the end of a challenging plan




                       2019 Target        2019E Preview         2019 Highlights

                                                           € 50mn recurring profit per
 Estimated                              € 1.00 - 1.03bn     quarter
                                   -
 Revenues                                                  Strong International EBITDA
                                                            growth
                                                           HQ restructured, regaining
 Estimated                                                  efficiency
                        € 300mn          € 360-370mn
 Net Profit                                                Reorganization of Asset
                                                            Management portfolio
                                                           Performance to clients and
 Cumulative
                                 >75%      ≥ 7.8 p.s.       stakeholders
                        Payout




 Dividend
                                 >60%    (≥ 90% Payout)    Flat SG&A 2019 vs. 2018
 2015-2019E




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)                                                          Total Revenues(1) (€mln)
                                                                            160
 20

 16                                                                         120

 12
                                                                             80
  8
                                                                             40
  4

  0                                                                           0
       2012    2013   2014    2015    2016   2017    2018    2019                 2012   2013   2014   2015   2016   2017   2018   2019


EBITDA(2) (€mln)                                                            EBITDA Margin

 60                                                                         40%

 50
                                                                            30%
 40

 30                                                                         20%

 20
                                                                            10%
 10

   0                                                                         0%
       2012    2013    2014   2015    2016    2017   2018    2019                 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

                                                                       2019 Total Assets           €6.1bn

                                New York (AACP)
                                                                        2019 Net Inflows           €0.8bn
                              Miami
                   Mexico                                  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
                                                  Brazil
                                                           Mexico:
                            Chile                               Largest independent distribution network
                                                                Growing in local AM, currently 3 onshore mutual funds
                                                           USA:
                                                                AUM and clients on-boarding under way. Synergies with
 Asset Management                                               Brazilian operations yet to be fully exploited
 Distribution
                                                                Launched AACP to acquire minority GP stakes in Private
 Private Markets
                                                                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


                                                               2019 Total Assets         €4.8bn

                                                               2019 Net Inflows          €0.6bn

                                                            Switzerland:
                                                               Consolidating  local    managers,    growing    an
                                                               independent platform
 Ireland
                                                            U.A.E.:
                         Luxembourg
           Switzerland
                                                               Developing an integrated platform in Dubai and Abu
                                                               Dhabi
                                        Turkey
                Monaco
                                                            Turkey:
                                                               Operating since 2012, leading independent asset
                                      Egypt                    manager with a 5% market share

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

                                                            Monaco:
                                                               Doubled AUM in 5 years, targeting UHNWI
 Asset Management
 Distribution                                               Egypt:
                                                               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


                                                                           2019 Total Assets       €6.1bn

                                                                           2019 Net Inflows        €1.0bn

                                                                 Asia:
                                  Shanghai                       China/HK:

                                       Taiwan
                                                                    Granted Private Fund Manager license: first amongst
                                                                    eurozone asset managers
                           Hong Kong
                                                                 Taipei:
                                                                    Expanded scope, including FAs and insurance brokerage
                                                                 Singapore:
                    Singapore
                                                                    Scaling up WM capabilities, focus on managing local
                                                                    products & distributing to HNW and Family Offices

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

 Asset Management                                                   Expanded considerably AZ NGA franchise through M&A
                                                Australia           and organic growth. JV activity to continue in 2018
 Distribution
                                                                    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.
                                                   14
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
                                                                                                                125 –
              Others
                                                                                                                 150

     Total International
      Operations (€bn)
                                                                                      1.5 – 2.0


         Market Cap*
                                                                                          3.1
         Azimut (€bn)




Source: Company Data, Bloomberg, market multiples & selected
precedent transactions. Note*: at 08/1/2020.                                15
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%
                                                                                             6x
 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%



Source: Company Data, Factset.
                                                   16
US Private Markets initiative (1/3)

Azimut Alternative Capital Partners (“AACP”): the project                            Team
                                                                                      Jeffry Brown: previously
                   Newco set up to build a next generation, diversified and           one       of         the     first
                  multi-affiliate investment firm acquiring initially minority GP    Managing Directors at
                   stakes in alternative asset managers
                                                                                      Dyal                   Capital
                                                                                      (Neuberger            Berman),
                                                                                      one     of     the     leading
                        Initial focus on U.S. Private Credit, Private Equity,         minority stake investors
                       Infrastructure and RE
                                                                                      in alternative managers.
                                                                                      Prior to Dyal, senior roles
                                                                                      at Bear Stearns AM and
                        Access to strong and consistent cash flow generation          MS AM.
                       delivered at the GP level, further enhanced in AACP
                                                                                      Executed         over         50
                        given greater diversification and lean cost base
                                                                                      transactions on $135bn
                                                                                      in AUM, including 33 GP

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

                   shopped segment of sub USD 3bn alternative managers               Other          key         senior
                    with high current positive EBITDA                                 managers               already
                                                                                      identified joining shortly

Source: Company data
                                                          17
US Private Markets initiative (2/3)

 The Structure                                                                  Azimut targets

                                                                                 $ 7 billion pro-rata AUM
                               Azimut
                             Alternative                                         (in excess of $ 20 billion
                           Capital Partners                                      gross AUM) in 10 years
                              ("AACP")        Consistent, high quality EBITDA
                                              cash flow from predictable
                                                                                 Funded        through      a
                                              recurring fees and further
Permanent capital                             upside from carried interest /     meaningful           equity
supporting growth and/or                      performance fees. Potentially      commitment by Azimut
generational change                           additional products/capacity
                                                                                 together with additional
                                              for our clients worldwide
                                                                                 (local)   leverage      and
                                                                                 retained earnings

                                                                                 Target to acquire ca. 10
                                                                                 alternative             asset
                                                                                 managers,        diversified
          25%-49%                  25%-49%                     25%-49%           across    Private    Credit,
                                                                                 Private Equity and at a
                                                        Infrastruct. /
     Private                   Private                                           later      stage        Real
                                                         Real Estate
    Credit GP                 Equity GP
                                                             GP                  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                                        Target Market
                                        1,500

                                                                               300
                   257
                                         AuM                     54
                                        $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           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

    2016           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.

    2019           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:



         The integration of ESG principles in the investment process and risk management thanks to the creation of
 Q4       an internal ESG rating. Target to reach €7bn (ca. 30% of the entire AZ Fund Management assets) by end-
2019      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.


 Q1      The creation of a line of full SRI sectors and thematic products
2020

 On      The establishment of a Sustainability Committee within the Investment Department.
Going


                                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                            ?
                                                                         Net Profit Floor at
    Distribution costs (as % of Recurring Revenues)
                                                                             € 300 mn
             Rebate

             Recurring Revenues

             Overheads

    Fixed costs                     +/-5% vs. 2019(1)




Source: Company data.
                                                        24
(1) Excluding any extraordinary operations
Contacts


Investor Relations Contacts
Vittorio Pracca
Tel. +39.02.8898.5853
Email: vittorio.pracca@azimut.it
Galeazzo Cornetto Bourlot
Tel. +39.02.8898.5066
Email: galeazzo.cornetto@azimut.it
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.



                                                                               25
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