3Q11 RlResults Milan, 10th November 2011 3Q11 Results Summary 3Q11 Highlights Asset Management Distribution banned 3Q11 Financials yy Outlook About Azimut nstitutionall termism” is i ““ Short 2 3Q11 Results 3Q11 Highlights Asset Management Distribution banned yy 3Q11 Financials Outlook About Azimut nstitutionall termism” is i ““ Short 3 3Q11 Highlights 9M11 Total revenues € 243.7 million vs. € 254.3 million during the same period in 2010, entirely attributable to lower variable management fees in 2011 vs. the previous year (€ 21.9 million vs. € 32.4 million). 9M11 Net profit € 57.2 million vs. € 66.4 million in 9M10, due to the abovementioned lower contibtitribution from varibliable management fees. 9M11 Net Inflows into managed assets of € 52 million, while total inflows including administrated assets stand at € 177 million. Over the same period, the Italian asset banned yy management industry recorded net outflows of € 14.4 billion (Assogestioni data). In October 2011 Azimut net inflows into managed assets stood at € 147 million. nstitutionall A strong Company with: 9AuM benefiting from positive YtD flows 9Robust cash generation termism” is i ““ 9Positive net financial position 9Solid balance sheet Short 4 3Q11 Highlights Difficult markets – Unparalleled product innovation THE MARKET AZIMUT • 2 ChCash MtManagement fdfunds with the bfitbenefit • Banks’ Deposits with attractive yields, but of a true diversification of the underlying subject to lock ups, no diversification, investment and a careful selection of counterppyarty risks… international counterparties. • RMB Opportunities the first UCITS fund • Strong Currencies such as the Swiss Franc providing a direct exposure to the Renminbi are benefiting from the current market with unrestricted liquidity and local expertise. banned weaknesses… yy • Cat Bond fund a UCITS fund investing in all instruments that offer exposure to • Commodities such as Gold are seen as catastrophic insurance risks, truly “safe‐heaven”, but lack diversification and nstitutionall decorrelated from traditional market trends require ad‐hoc management skills… and a well diversified portfolio. • Banking Bonds the illusion of attractive • Formula Target, a family of funds investing yields at the expense of diversification, in international corporate and government termism” is i ““ liqu idity, counterparty rikisk… bonds with a target date (Dec. 2013, 2014, 2015) well diversified and with daily liquidity. Short 5 3Q11 Highlights Difficult markets – Distribution: where do we go from here? • Continue to focus on the strong integration between production and distribution in order to inform and advise clients on their investment, the strategies followed by our PM team and their views on market trends. • Continue the extensive training programme of our FAs on new products and initiatives pursued by the Group. • Benefit from the recently started internationalisation of the Group with a unique and comprehensive set of investment management products across different asset classes, banned yy geographies, currencies. • Launched a new unit linked policy following internal recommended portfolios with different nstitutionall risk/return profiles. Throughthisproduct we will be able to further enhance the advisory service available to our FAs in an efficient way and with a medium/long term investment horizon. termism” is i ““ • Sticking to our recruitment strategy when attracting top quality people from competition selected on a individual basis. Positive results achieved in our WM division. Short 6 3Q11 Highlights A slide from the past but still up‐to‐date! In a slide for our 2008FY results we listed what we were and what we were not… In particular we are not a banned yy bank,wedonot need to improve our capital ratios and we do not have any nstitutionall titoxic assets inourblbalance sheet… termism” is i ““ And this is still very much the case. Short 7 3Q11 Results 3Q11 Highlights Asset Management Distribution banned yy 3Q11 Financials Outlook nstitutionall About AiAzimut termism” is i ““ Short 8 3Q11 Asset management Fund of Funds are quite entirely for asset classes not managed in house FOFS IN HOUSE ‐ LUX IN HOUSE ‐ ITA 100% 90% 80% 70% 60% 50% banned yy 40% 30% 20% nstitutionall 31,3% 31,2% 29, 4% 30, 9% 30, 6% 30, 3% 29, 9% 28, 9% 28, 6% 27, 1% 10% 21,4% 15,8% 19,6% 0% feb ott mag ago apr set set mar gen nov giu lug dic ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10 10 11 11 ‐ ‐ 11 10 ‐ 11 1 ‐ 1 1 1 1 1 1 1 1 0 1 termism” is i 1 ““ Short Source: Company data 9 Luxembourg funds –3Q11 breakdown Fund of funds have the same margin as in house funds 0‐30% EQ F1 CONSERVATIVE 9.6% FORMULA TARGET 2014 0‐30% EQUITY CORPORATE PREMIUM INSTITUTIONAL TARGET 0‐70% EQ EUROPEAN DYNAMIC FOF 6.6% 0‐70% EQUITY DIVIDEND PREMIUM STRATEGIC TREND 31,6% F1 ABSOLUTE TREND ITALIAN TREND Managed 0‐100% EQUITY PACIFIC TREND open Flexible funds AMERICAN TREND architecture with high delegation to PM EUROPEAN TREND 0‐100% EQ LONG TERM VALUE banned 15.4% yy MARKET NEUTRAL F1 ALPHA PLUS Traditional product New strategies QBOND QUANT QPROTECTION QTREND nstitutionall MACRO MACRO DYNAMIC TRADING OTHER MKT. NEU. COMMODITIES COMMODITY TRADING 15.5% 10.0% EQUITY LONG/SHORT ACTIVE SELECTION MULTI MULTI ACTIVE STRATEGY QUANT 0.4% 6.5% termism” is i OTHER SINGLE MANAGER EQ. L/S ““ OTHER COMMOD. MACRO FOFs MULTIMANAGER FOFs 1.9% 1.1% 1.4% Short Source: Company data at 30/09/2011 10 Funds of funds –3Q11 breakdown Active asset allocation also within our FoFs % BY STRATEGY Opportunities Alpha Manager Best Bond Thematic 29.7% Mixed fixed income Best Equity 17.8% Emerging markets equities Alpha M. Credit Alpha M. Equity 15.2% Balanced portfolio Emergin Market banned Asia yy 98%9.8% Corporate (IG,HY) and Em. debt 13.7% Global equities Emerging Europe nstitutionall 10.5% Diversified fixed income Emerging Latin America 3.3% Small caps Asset Plus termism” is i Asset Power ““ Short Source: Company data at 30/09/2011 11 Funds breakdown by category Italian Industry (%) Azimut (%) 2.7% 4.9% 4.0% 12.8% 7.3% 20.6% Bond funds 22.2% Mixed Fixed Income banned yy nstitutionall 15.0% 10.5% 44.0% 51.1% 4.9% termism” is i ““ Cash Bond Balanc. Flexible Equity Hedge Short Source: Company data/ Assogestioni at 30/09/2011 12 Mutual fund breakdown by underlying assets Italian Industry Azimut Total Equity 14,9% Total Equity 33,9% Cash Cash 28.8% Corp. bonds 12.2% 22.0% Italian eq. Italian eq. 2.4% 2.9% Corp. bonds Foreign eq. 8.7% 12.5% banned yy Cv. bonds 0.1% Foreign eq. 31.0% nstitutionall G'tGov't bdbonds Gov't bonds 28.3% Cv. bonds 50.8% 0.2% termism” is i ““ Short Source: Company data / Assogestioni / Il Sole 24 ore - data as at 30/09/2011 13 Azimut funds’ breakdown by underlying securities Equities Fixed Income CONV. BDS UK 0.6% 10.7% USA CORP. BDS OTHER EUROPE 30.9% 23.4% 4.6% banned yy OTHER GOV'T GOV'T € 17.0% 53.6% EUROPE € ASPAC 29.4% 15.8% nstitutionall GOV'T USD GOV' T EUR EX‐€ Austria OTHER 3.7% 1.8% Belgium 8.6% Finland France 53.2% Germany termism” is i Italy ““ Netherlands Short Source: Company data as of 30/09/2011 14 3Q11 Results 3Q11 Highlights Asset Management Distribution banned yy 3Q11 Financials Outlook nstitutionall About Azimut termism” is i ““ Short 15 Short “termism” is institutionally banned Distribution ‐ ‐ ‐ ‐ ‐ ‐ 2.0% 3.0% 0.0% 1.0% 6.0% 5.0% 3.0% 2.0% 4.0% 1.0% 2006 jan‐06 –11 mar‐06 may‐06 Funds’ jul‐06 sep‐06 nov‐06 net jan‐07 ‐ inflows mar‐07 Funds may‐07 jul‐07 sep‐07 as nov‐07 a % jan‐08 Azimut Industry ItalianFunds’ of mar‐08 total may‐08 jul‐08 sep‐08 managed nov‐08 jan‐09 mar‐09 may‐09 assets Source: lug‐09 set‐09 Company nov‐09 jan‐10 out mar‐10 of Assogestioni may‐10 jul‐10 sep‐10 monthly nov‐10 jan‐11 figures mar‐11 may‐11 Jul‐11 Sep‐11 2.0% 3.0% 0.0% 1.0% ‐ ‐ ‐ ‐ ‐ ‐ 3.0% 2.0% 1.0% 6.0% 5.0% 4.0% 16 Distribution –Recruitment of PFs 2011 Recruitment: selection, reorganisation and quality 31/12/10 IN Churn 30/09/11 TOTAL 1, 380 97 ‐56%5,6% 1. 399 o/w Wealth Management Division 95 banned yy (WM +RWM) • We continue to recruit financial advisors from competition following our historical selection nstitutionall criteria (experience, AuM, client base, incentives), while carrying on with a “fly‐to‐quality” process within our existing FAs networks; • Since the establishment of the WM division almost 2 years ago we have been able to attract a termism” is i ““ significant number of high quality professionals. Short Churn includes retired PFs Apogeo PFs do not include hiring by the former Cattolica sim 17 Distribution –WM Division WM: lifting the bar towards the high end client base The WM division was launched in November 2009 and has grown thanks to: 9 Internal recruitment of FAs 9 External recruitment of private bankers, for which Azimut did not have a dedicated structure. Growth comes from “word‐of‐mouth” and banks’ reorganisation Private CCetlient Discretionary Insurance Accounts In the past two years we have worked to build a comprehensive product and Asset Management banned service offer also through a number of Products yy Portfolio selected partnerships in different areas Optimisation of expertise in order to meet the Service wealth management requirements (legal/fiscal/trust) nstitutionall from a PlPersonal, FilFamilyand BiBusiness Corporate & perspective. Banking Investment Services Banking Real Estate termism” is i ““ Advi sory Short Today the WM division has more than 5,000 wealthy clients 18 3Q11 Results 3Q11 Highlights Asset Management Distribution banned yy 3Q11 Financials Outlook About Azimut nstitutionall termism” is i ““ Short 19 Consolidated reclassified