Azimut Holding S.p.A. Consolidated interim financial report at 31 March 2018

Transcription

1 Azimut Holding S.p.A. Consolidated interim financial report at 3 March 28

2

3 Consolidated interim financial report at 3 March 28 Azimut Holding S.p.A.

4 4 G r u p p o A z i m u t

5 Contents Company bodies 7 Azimut Group's highlights and indicators 9 Management report Consolidated financial statements 23 Basis of preparation 37 Statement pursuant to article54-bis.2 of the Consolidated Law on Finance 49 Consolidated interim financial report at 3 March 28 5

6 6 G r u p p o A z i m u t

7 Company bodies Board of Directors Pietro Giuliani Sergio Albarelli Paolo Martini Andrea Aliberti Alessandro Zambotti Marzio Zocca Marco Mandelli (*) Ester Aldighieri (*) Raffaella Pagani Antonio Andrea Monari Anna Maria Bortolotti Renata Ricotti Chairman Chief Executive Officer Co-Managing Director Director Director Director Director Director Director Director Director Director Board of Statutory Auditors Vittorio Rocchetti Costanza Bonelli Daniele Carlo Trivi Maria Catalano Luca Giovanni Bonanno Chairman Standing Auditor Standing Auditor Alternate Auditor Alternate Auditor (*) from 24 April 28 as per the Shareholders Meeting of 28 April 26. Consolidated interim financial report at 3 March 28 7

8 Azimut Group's highlights and indicators AZIMUT GROUP'S STRUCTURE The Azimut Group operates globally in 7 countries and is comprised of the parent company, Azimut Holding S.p.A., and 76 subsidiaries. Azimut Holding S.p.A. (Listed:AZM.IM) AZ Fund (5) (999) (%) Luxembourg AZ International Holdings (2) (%) Luxembourg Azimut Capital Management Sgr (24) AZ Brasil Holdings (23) AZ Athenaeum (23) Katarsis CA (2) (%) Italy (%) Brazil (%) Singapore (%) Switzerland Azimut Financial Insurance (25) AZ Quest (25) Sigma Fund Mgmt (26) New Horizon CM (27) Eskatos CM (2) (%) Italy (66%) Brazil (5%) (8%) United Arab Emirates (%) Luxembourg AZ Life (23) AZ Swiss (4) (22) AZ Sestante (25) AZ Brasil Holdings (23) AZ US Holding (25) (%) Ireland (5%) Switzerland (%) (%) Brazil (%) USA Azimut Enterprises (24) Azimut Portföy (2) CGM (2) CGM Sgr (2) Azimut Brasil WM Holding () (25) AZ Apice LLC (26) (%) Italy (%) Turkey (%) Monaco (%) Italy (%) Brazil (7%) USA Azimut Global Counseling (23) (%) Italy Azimut Libera Impresa SGR (24) (%) Italy AZ Sinopro FP (2) (23) (5%) Taiwan AZ Sinopro SICE (2) (23) (%) Taiwan AZ Andes Spa (25) (92%) Chile AZ Mèxico Holdings Sa de CV (24) (94%) Mexico Màs Fondos S.A. (24) (%) Mexico AZ NGA (3) (24) (52%) Source: company figures updated to 3/3/28 Note (): controls the distribution companies M&O Consultoria, FuturaInvest and Azimut Brasil Wealth Management. Note (2): controls AZ Sinopro Insurance Planning. Note (3): controls 36 companies at 3 March 28. Note (4): 3% held by Azimut Capital Management SGR S.p.A. and 9% by Azimut Financial Insurance S.p.A., both wholly owned by Azimut Holding. Note (6): controls SDB Financial Solutions, effective from 8 January 28. Asset management Distribution Life Insurance Alternatives 8 G r u p p o A z i m u t

9 Azimut Group - Highlights at 3 March ,6 7 countries 848, million 26 million Year of incorporation Year of flotation Total assets Geographical coverage Employees Financial advisors Revenues for the first quarter of 28 Net profit for the first quarter of 28 Consolidated interim financial report at 3 March 28 9

10 Azimut Group - Indicators Financial indicators (millions of euro) First quarter of 28 Total income: 82 of which fixed management fees 56 EBIT 39 Net profit for the period 26 First quarter of Change Absolute % % 5% % -8% Net inflows (billions of euro) % 6.8 Operating indicators Financial advisors AUM, net (billions of euro) 3/3/28 3/2/27 3/3/27,656,638, Breakdown of assets under management at 3 March 28 2% 3% 2% 65% Mutual funds Discretionary portfolio AZ Life Insurance Advisory G r u p p o A z i m u t

11 Management report This consolidated interim financial report at 3 March 28 has been prepared pursuant to Article 54-ter (Interim Reports) of Italian Legislative Decree no. 58/998 (Consolidated Law on Finance), introduced by Italian Legislative Decree no. 95/27, implementing EU Directive 24/9/EC (known as the Transparency Directive) as amended. Azimut Holding S.p.A.'s consolidated interim financial report specifically focuses on the highlights of the quarter, simplifying market disclosure. This consolidated interim financial report provides: a) a general description of the financial position and results of operations of Azimut Holding S.p.A. and its subsidiaries for the quarter; b) a description of the main events and transactions of the period and their impact on the financial position of Azimut Holding S.p.A. and its subsidiaries. Despite the considerable uncertainties and the high volatility on the markets, the advisory activities provided to customers by Azimut Group's financial partners continued to develop positively. The Group continued to attract professionals of the banking and the Private Banking sectors in Italy, increasing the number of financial advisors by an additional 4 resources compared to 3 December 27. Introduction -Azimut Group's performance for the first quarter of 28 Consolidated interim financial report at 3 March 28

12 Net inflows The Group's inflows for the first quarter of 28 is positive at 874 million euro. Figures in millions of euro Funds Discretionary portfolio management and other AZ Life insurance Advisory Double counting Total net inflows - Assets under management Securities, third-party funds and c/a Total net inflows Change 3/3/28 3/3/27 Absolute % % 2, , , ,39-8.% 7.9% 2.8% % -2.6% -6.% -9.4%, ,6 2,632 6,793 Assets At 3 March 28, total assets, including assets under custody, reached 5.6 billion euro, of which 4. billion euro relates to assets under management. Figures in millions of euro Mutual funds Discretionary portfolio management and other AZ Life insurance Advisory Double counting AUM, net Securities, third-party funds and c/a Total assets Change 3/3/28 3/2/27 Absolute % 3/3/27 3,668 9,547 6,453,8-8,87 4,32,62 5,634 3,77 9,454 6,72,9-8,83 4,89,252 5, %.2% -3.7% 6.2%.2% -.4% 4.%.4% 3,223 7,965 6, ,85 37,669 8,832 46,5 2 G r u p p o A z i m u t

13 In order to provide a more effective representation of the results, the income statement has been reclassified and thus better reflects the content of the items according to operating criteria. The main reclassifications involved the following: cost recoveries on portfolio management reported under Fee and commission income have been reclassified as Other income in the reclassified income statement; net premiums and the corresponding change in the technical reserves, commissions and recovered expenses relating to insurance and investment products issued by AZ Life dac, reported under Net premiums, Change in technical reserves and Fee and commission income, have been reclassified as Insurance income ; commission expenses paid to the distribution network, reported under Fee and commission expenses have been reclassified as Acquisition costs ; the Enasarco/Firr contributions related to these commission expenses and the other trade payables associated with the distribution network, booked under Administrative costs, are now classified as Acquisition costs ; the amount allocated to the supplementary indemnity provision for agents (ISC) reported under Provisions for risks and charges has been reclassified as Acquisition costs ; administrative cost recoveries, reported under Other operating income and costs were recognised as a reduction of Overheads/administrative costs ; interest expense on loans was reported under Interest expense in the reclassified income statement. Reclassified consolidated income statement Consolidated interim financial report at 3 March 28 3

14 Euro/ Q28 Q Acquisition fees,764 2,93,247 Fixed management fees 56,333 48,27 66,598 Variable management fees 9,588 49,57 36,379 Other income 2,42 2,293 8,456 Insurance income 2,477,775 48,864 Total income 82,34 24,723 8,544 Acquisition costs (9,883) (84,363) (337,456) Overheads/administrative costs (48,826) (42,863) (78,534) Amortisation and depreciation/provisions (3,89) (3,979) (6,465) Total costs (43,528) (3,25) (532,455) EBIT 38,776 83,58 278,89 Net financial income (3,943) (427) (3,57) Net non-recurring costs (9) (975) (8,4) Interest expense (,832) (2,825) (9,646) Pre-tax profit (loss) 32,9 79,29 247,272 Income tax (4,84) (4,248) (22,854) Deferred tax assets/liabilities 3,9 (479),49 Net profit (loss) 3,376 74, ,99 Profit (loss) attributable to minority interest 3,938,623,23 Group net profit 26,438 72,94 24,786 Consolidated EBIT and consolidated Group net profit at 3 March 28 came to 39 million euro (84 million euro at 3 March 27) and 26 million euro (73 million euro at 3 March 27), respectively. At 3 March 28, assets managed amounted to 37.7 billion euro, up by 2.3 billion euro on 3 March 27 (+6.3%), generating fixed management fees of 56 million euro, in addition to variable management fees of million euro. The trend of acquisition costs (up by 7 million euro or 8% on 3 March 27) also reflects the recruitment of financial advisors during the period. Overheads in the first quarter of 28 increased on the same period of the previous year due to the consolidation of foreign equity investments and charges directly related to investments in software to keep up with the growth of the Group. 4 G r u p p o A z i m u t

15 MAIN BALANCE SHEET FIGURES Euro/ Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost and equity investments Property and equipment and intangible assets Other assets Total assets Financial liabilities at amortised cost Technical reserves Financial liabilities measured at fair value Other liabilities and provisions Shareholders equity Total liabilities and shareholders equity 3/3/28 3/2/27 6,73,249 6,974,29 3,523,789 25, , ,2 565,53 284, ,72 7,84,634 8,6,67 363,58 374,69 27, ,857 6,344,64 6,65,46 287,79 287,32 638,269 62,88 7,84,634 8,6,67 Financial assets at fair value through profit or loss decreased by approximately 3% on 3 December 27. These items mainly refer to the insurance activities carried out by AZ Life dac: assets mainly relate to investments in unit-linked policies where the investment risk is borne by policyholders, while liabilities mainly relate to commitments from unitlinked policies classified as investment contracts, in addition to the UCI units which reflect the investment of the excess liquidity of operations. Financial assets at amortised cost mainly comprise cash equivalents with bank current accounts held by Group companies which decreased from 267 million euro to 25 million euro, down by approximately 6% on 3 December 27. Property and equipment and intangible assets increased slightly as a consequence of the rise in intangible assets with a finite life due to the investments of the period. Consolidated interim financial report at 3 March 28 5

16 Consolidated net financial position At 3 March 28, the net financial position is at 3 million euro, stable on the balance at 3 December 27 (35 million euro). Euro/ A. Cash B. Cash equivalents: Due from banks Due from managed funds C. UCI units and government securities D. Total cash A+B+C E. Short-term financial receivables F. Short-term bank loans G. Current portion of long-term debt: Bonds (Azimut '3-'2 Convertible) Bonds (Azimut '7-'22 Non-convertible) Due to banks (Banco BPM loan) H. Other short-term financial payables I. Short-term financial debt F+G+H J. Short term financial debt (net) I-E-D K. Long-term bank loans: Due to banks (Banco BPM loan) L. Bonds Azimut '3-'2 Convertible Bond Azimut '7-'22 Non-convertible Bond M. Other long-term payables N. Long-term financial debt K+L+M O. Net financial position J+N 3/3/ ,924 67,844 56,8 265,75 489,22 - (,58) (58) (,) (,58) 478,964 (348,549) (348,549) (348,549) 3,45 3/2/27 3/3/ ,44 567,433 57,945 49,332 74,496 76, 266,28 266,85 498, , (5,35) (,929) (,852) (5,35) (77) (,) (,) - - (5,35) (,929) 483, ,345 (,) (,) (348,465) (576,44) (227,369) (348,465) (348,775) (348,465) (586,44) 34,87 236,2 With regard to the methods used to assess net financial position, reference was made to the recommendation issued by CESR (Committee of European Securities Regulators) dated February 25, and more specifically to the paragraph on Capitalisation and indebtedness in chapter II. Receivables and payables include those of a financial nature only, whereas trade receivables and payables have been excluded. Receivables in the form of fees and commissions for managed funds and discretionary portfolios are also included and are considered as cash equivalents given that they are collected by the Group during the first few working days after the reference date. 6 G r u p p o A z i m u t

17 At 3 March 28, consolidated shareholders' equity, including the profit for the period, amounted to 624 million euro (593 million euro at 3 December 27). This figure does not reflect the effects of the dividend distribution approved by the shareholders in their ordinary meeting called to approve the 27 financial statements on 24 April 28. The shareholders resolved to pay a dividend of 2 euro per ordinary share, pre-tax, to be paid as of 23 May 28, 2 May 28 exdividend payment date and 22 May 28 as the record date. Each shareholder will receive (before withholding tax). euro in cash, as well as a bonus issue of Azimut Holding share per 8 ordinary shares held (totalling 7,246,29 shares). The bonus shares (all held as treasury shares by the company) will be assigned after the ex-dividend payment date on 2 May 28. The shareholders also approved the payment to Fondazione Azimut Onlus of 2.5 million euro, equal to % of pre-tax consolidated profit and the payment of 2,48 euro for each profitparticipating financial instrument held by Top Key People at the time of approval of payment of the dividend. In January 28,,735,2 treasury shares were purchased, for a total of 3 million euro, completing the third buy-back announced in December 27. Shareholders' equity Treasury shares On 3 January 28, Azimut Holding S.p.A. transferred 2,52,49 treasury shares to its subsidiary AZ International Holdings Sa for a total consideration of 42 million euro, of which 2,227,969 treasury shares amounting to approximately 37 million euro, used to purchase the remaining 49% of Compagnie de Gestion Privée Monégasque (CGM). At 3 March 28, the subsidiary AZ International Holdings Sa held 252,49 Azimut Holding S.p.A. shares which were subsequently transferred on 5 April 28 as part of the above transaction to acquire CGM. At 3 March 28, Azimut Holding S.p.A. s remaining subsidiaries did not hold any treasury shares or shares of the Parent Company, either directly or via trust companies or third parties. At 3 March 28, Azimut Holding S.p.A. s treasury share portfolio therefore stood at 2,82,268 shares, or 8.95% of share capital. Consolidated interim financial report at 3 March 28 7

18 2 - Main events of the first quarter of Capitalisation transactions carried out by Azimut Holding S.p.A. In the first quarter of 28, following the Board of Directors' resolution of 4 May 27, Azimut Holding S.p.A. made a cash capital injection of 7.5 million euro to increase the share capital of the subsidiary AZ International Holdings SA and finance the Group's international development. Furthermore, it transferred treasury shares to service the purchase of the residual 49% of Compagnie de Gestion Privée Monégasque for a total consideration of 42 million euro. Capital injections in favour of Azimut Enterprises Holding S.r.l. totalling million euro were made in March Purchases of own shares by Azimut Holding S.p.A. The purchase of the further instalment of treasury shares passed by the company s Board of Directors on 2 December 27 was completed on 26 January 28, as per the authorisation issued by the shareholders pursuant to article 2357 of the Italian Civil Code. In January 28,,735,2 treasury shares were purchased, for a total of 3 million euro. 2.3 Transactions carried out in the first quarter of 28 by AZ International Holdings SA The closing of the transaction envisaging the acquisition of SDB Financial Solutions SA took place on 8 January 28. The acquisition of the additional 49% of Compagnie de Gestion Privée Monegasque SAM was completed on 3 January Transactions carried out in the first quarter of 28 by AZ Capital Management SGR S.p.A. The merger of Azimut Partecipazioni S.r.l. into Azimut Capital Management SGR S.p.A. became effective on January 28. On 2 February 28, Azimut Holding S.p.A., through the subsidiary Azimut Capital Management SGR S.p.A. ( Azimut SGR ), entered into an agreement with Sofia Gestione del Patrimonio SGR S.p.A. under extraordinary administration ( Sofia SGR ) and Sofia Partners S.p.A. ( Sofia Partners ), as Sofia SGR s majority shareholder, whereby Azimut SGR will acquire part of Sofia SGR s assets (the Business Unit ). The Business Unit will mainly provide the following services (i) collective portfolio management, (ii) investment portfolio individual management services on behalf of third parties, (iii) management under delegation assigned by parties providing investment portfolio management services and by Italian and/ or foreign UCIs and (iv) consultancies in investments in financial instruments. Following the acquisition of the Business Unit, Azimut Capital Management SGR will also take over the management of four open-ended mutual funds set up, promoted and currently managed by Sofia SGR, and will increase its network with 47 Sofia SGR s financial advisors who, at 3 December 27, had assets under 8 G r u p p o A z i m u t

19 management worth approximately 8 million euro. Concurrently with the transfer of the Business Unit, Azimut Capital Management SGR will pay Sofia SGR a base consideration of 3 million euro and, after 24 months, the residual variable portion, if any, of the price which will be calculated based on the performance of the assets under management transferred to Azimut Capital Management SGR and their net profitability. Under the agreement, a series of representations and guarantees on the risks related to the activity carried out by the Business Unit until its transfer will be issued in favour of Azimut Capital Management SGR. This is typical of similar transactions. The completion of the transactions depends, inter alia, on the obtainment of the necessary authorisations, consents and/or permissions from the Bank of Italy. The main risks and uncertainties to which Azimut Holding S.p.A. and the Group are exposed are as follows: Strategic risk; Sales network risks Operational risk; Outsourcing risk; Reputational risk; Compliance risk; Financial risk; Liquidity risk. For further information on the main risks and uncertainties for the Group, reference should be made to the consolidated financial statements at 3 December 27. Pursuant to Consob Regulation on Related Parties (Resolution No. 722 of March 2, as amended), on 22 November 2, the Board of Directors of Azimut Holding S.p.A. approved the procedures that ensure transparency and fairness of related-party transactions ( Related-Party Transaction Procedure available on Azimut s website at With reference to paragraph 8 of Article 5 of the Consob Regulation on periodic disclosure of related-party transactions, the Group did not engage in any significant transactions during the first quarter of Main risks and uncertainties 4 - Related party transactions No other atypical or unusual transactions were performed. Information on key management fees Directors' fees amounted to 3,82 thousand euro in the first quarter of 28. The fees for the Board of Statutory Auditors members stood at 43 thousand euro. Information on related-party transactions Related party transactions referring to commercial transactions carried out by Azimut Holding S.p.A. with its subsidiaries and associates, and among its subsidiaries and/ or associates in the first quarter of 28 are part of the Group's ordinary business and were conducted on an arm s length basis. Consolidated interim financial report at 3 March 28 9

20 Moreover: for use of the trademark, the subsidiary Azimut Capital Management Sgr S.p.A. pays Azimut Holding S.p.A. contractually established annual royalties totalling 2, thousand euro; Azimut Holding S.p.A., as the Parent Company, and Azimut Capital Management Sgr S.p.A., Azimut Financial Insurance S.p.A., Azimut Enterprises Holding S.r.l. and Azimut Partecipazioni S.r.l., as subsidiaries, have adopted the tax consolidation regime; a contractually established annual fee (totalling, thousand euro) is payable for the coordination activities carried out by the Parent Company on behalf of the subsidiary Azimut Capital Management Sgr S.p.A.; an annual fee calculated based on contractually established percentages is payable for the Risk Management, Internal Audit, Compliance and Anti-money Laundering control activities carried out by the Parent Company in favour of the subsidiaries Azimut Capital Management S.p.A. and Azimut Libera Impresa Sgr S.p.A.; Azimut Holding S.p.A. has issued sureties to the subsidiary Azimut Capital Management Sgr S.p.A.. Azimut Capital Management Sgr S.p.A. has disbursed loans to several financial advisors, identified as related parties, to develop their business. The terms and conditions of these loans are at arm s length. At 3 March 28, they amounted to,22 thousand euro. Moreover, the Group s directors who also act as managers of mutual funds are exempt from paying fees and commissions on any personal investments made in the funds they manage. Finally, in the previous year, the subsidiary Azimut Capital Management Sgr S.p.A. issued a covered warrant offered for subscription to the Group s employees, some of whom are also directors of the parent company and the subsidiaries, against consideration and using employees capital and with the risk entirely born by the latter. Total financial instruments issued and subscribed amount to, and are worth 85 thousand euro, while the instruments subscribed by the Group s employees who also act as directors are equal to 364. With respect to profit-participating financial instruments, in accordance with Shareholders' resolutions, 8 key directors subscribed 225,7 instruments (paying the corresponding amount), including the Chairman Pietro Giuliani (27,7), the Chief Executive Officer Sergio Albarelli (37,5), the directors Andrea Aliberti (5,), Paolo Martini (29,), Marzio Zocca (,) and Alessandro Zambotti (6,5). As per the Shareholders' agreement related to Azimut Holding S.p.A., 923 related parties subscribed a total of,247,35 profit-participating instruments. At 3 March 28, the Parent Company held profit-participating instruments. 2 G r u p p o A z i m u t

21 At 3 March 28, Group personnel amounted to 848 employees, broken down as follows: 5 - Human resources Position Managers Middle managers Office staff Total 3/3/ /2/27 3/3/ Azimut Holding S.p.A. General Shareholders Meeting of 24 April 28 The shareholders meeting (both ordinary and extraordinary) of 24 April 28 resolved the following: 6 - Events after the reporting date Approval of 27 financial statements The shareholders meeting approved the 27 financial statements, which included a Parent Company net profit of 28.8 million euro. The shareholders concurrently resolved to pay a dividend of 2 euro per ordinary share, pre-tax, to be paid as of 23 May 28, 2 May 28 ex-dividend payment date and 22 May 28 as the record date. Each shareholder will receive (before withholding tax). euro in cash, as well as a bonus issue of Azimut Holding share per 8 ordinary shares held (totalling 7,246,29 shares). The bonus shares (all held as treasury shares by the company) will be assigned after the ex-dividend payment date on 2 May 28. The fractional rights arising from the share allocation will be monetised based on the official price resulting from the transactions carried out on the last market trading day prior to the ex-dividend date, without expenses, fees or other charges for the shareholders. They also approved the payment to Fondazione Azimut Onlus of 2.5 million euro, equal to % of pre-tax consolidated profit and the payment of 2,48 euro for each profit-participating financial instrument held by Top Key People at the time of approval of payment of the dividend. Appointment of Directors The Shareholders appointed Renata Ricotti as Independent director. With this appointment, the total number of independent directors increases to 4, in line with the code of conduct and in accordance with the gender balance as per art. 47-ter.-ter of the TUF (Consolidated Law on Finance) and Legislative decree no. 58/98. Proposal for purchase and allocation of treasury shares and consequent resolutions Furthermore, the shareholders approved the purchase of up to 28,, Azimut Holding S.p.A. ordinary shares, or 9.55% of the current share capital, including in one or more instalments, considering the shares already in portfolio upon purchase at a minimum unit price equal to at least the carrying amount of Azimut Holding S.p.A. ordinary shares and a maximum unit price of 5 euro. Consolidated interim financial report at 3 March 28 2

22 Resolution on remuneration policies. Remuneration Report and resolution pursuant to article 23-ter.6 of Legislative decree no. 58/98 The Shareholders approved the company policy concerning remuneration of members of the management boards, general managers and key managers, as well as the procedures used to adopt and implement said policy. Furthermore, the Shareholders were in favour of the proposal to increase the ratio between the fixed and variable components of remuneration up to 2:. Remuneration plan based on financial instruments pursuant to article 4-bis of Legislative decree no. 58/98 and related resolutions The Shareholders approved the remuneration plan based on financial instruments for financial advisors. Proposal to adjust the audit fees and related resolutions The Shareholders approved the proposed adjustment to the fees paid to the independent auditors, PriceWaterhouseCoopers S.p.A., from 7, euro to 4, euro. 6.2 Publication of the consolidated interim financial report at 3 March 28 On May 28, the Board of Directors granted authorisation to publish the consolidated interim financial report at 3 March Business outlook Given the positive results of the subsidiaries in the first quarter of 28, consolidated net profit is expected to be positive this year. Nonetheless, this year s financial position and results of operations will also be affected by financial market trends. 22 G r u p p o A z i m u t

23 Consolidated financial statements Consolidated interim financial report at 3 March 28 23

24 Consolidated balance sheet Assets 3/3/28 3/2/27 3/3/27 Cash and cash equivalents Financial assets at fair value through profit or loss 6,73,249 6,974,29 6,964,857 a) held-for-trading investments b) financial assets designated at fair value 6,458,527 6,7,283 6,689,224 c) other financial assets compulsorily measured at fair value 27, , ,633 Financial assets at fair value through other comprehensive income 3,523,789 9,723 Financial assets at amortised cost 248,8 265,2 584,89 Equity investments 2,357, Property and equipment 7,44 8,3 8,288 Intangible assets 555,77 557,4 57,595 of which: - goodwill 92,943 93,566 9,49 Tax assets 82,8 8,29 82,47 a) current 28,39 29,56 33,778 b) deferred 54,5 5,659 48,269 Other assets 2,453 28,474 2,52 Total assets 7,84,634 8,6,67 8,368,63 These figures were reclassified compared to the originally published figures due to the retrospective application of IFRS 9 and IFRS G r u p p o A z i m u t

25 Consolidated balance sheet Liabilities and Shareholders Equity 3/3/28 3/2/27 3/3/27 Financial liabilities at amortised cost 363,58 374,69 66,946 a) Payables 4,9 2,253 28,873 b) Outstanding securities 348,67 353,86 578,73 Technical reserves where the investment risk is borne by policyholders 27, , ,827 Other technical reserves Financial liabilities designated at fair value 6,344,64 6,65,46 6,545,792 Tax liabilities: 7,73 68,5 66,293 a) current 8,6 6,462 5,89 b) deferred 62,67 6,689 6,42 Other liabilities 77,72 8,539 75,524 Staff severance pay (TFR) 2,926 2,965 3,397 Provisions for risks and charges 36,89 35,377 3,642 c) other provisions 36,89 35,377 3,642 Share capital 32,324 32,324 32,324 Treasury shares (-) -8,3-3,28-6, Equity instruments 36, 36, 7,95 Share premium reserve 73,987 73,987 73,987 Reserves 483,9 275,69 433,444 Valuation reserves -9,468-9,642-2,885 Profit (loss) for the period/year 26,438 24,786 72,94 Minority interest 3,829 9,592 6,63 Total liabilities 7,84,634 8,6,67 8,368,63 These figures were reclassified compared to the originally published figures due to the retrospective application of IFRS 9 and IFRS 5. Consolidated interim financial report at 3 March 28 25

26 Consolidated income statement Items 3/3/28 3/3/27 3/2/27 Fee and commission income Fee and commission expense Net fee and commission income Dividends and similar income Interest income and similar income Interest expense and similar charges Net trading income (expense) Profits (losses) on disposal or repurchase of: a) financial assets at amortised cost b) financial assets at fair value through other comprehensive income c) financial liabilities Net gains (losses) on financial assets and financial liabilities at FVTPL a) assets and liabilities designated at fair value b) other financial assets compulsorily measured at fair value Net premiums Net profits (losses) on financial instruments at fair value through profit or loss Change in technical reserves where the investment risk is borne by policyholders Redemptions and claims Total income Administrative costs: a) personnel costs b) other administrative costs Net impairment losses/reversals of impairment losses on property and equipment Net impairment losses/reversals of impairment losses on intangible assets Net accruals to the provisions for risks and charges Other operating income and costs Operating profit Profits (losses) on equity investments Pre-tax profit (loss) from continuing operations Income tax on profit from continuing operations Net profit (loss) from continuing operations Profit (loss) for the period/year attributable to minority interest Profit (loss) for the period/year 73,26 (8,668) 92, (2,5) (3,797) (2,) (,797) 36 44,4 9,883 (55,86) 96,372 (59,33) (22,685) (36,448) (564) (2,69) (2,497) 52 32,9 32,9 (,74) 3,376 3,938 26,438 25,63 (75,975) 29, (3,73) 24 (338) 542,426 58,479 4,47 (54,458) 36,243 (52,8) (9,586) (32,495) (578) (3,284) (937) (72) 79,29 79,29 (4,727) 74,564,623 72,94 774,33 (3,345) 462, ,7 (,725) (7,97) (7,97) (6,225) (4,42) (,84) 3,53 84,679 23,467 (72,924) 478,2 (2,557) (83,255) (27,32) (2,44) (3,444) (6,383), ,28 (8) 247,272 (2,363) 225,99,23 24,786 These figures were reclassified compared to the originally published figures due to the retrospective application of IFRS 9 and IFRS G r u p p o A z i m u t

27 Statement of comprehensive income Items 3/3/28 3/3/27 3/2/27 Profit for the period/year 3,376 Other comprehensive income, net of taxes, not transferred to profit or loss Defined benefit plans (4) Other comprehensive income, net of taxes, transferred to profit or loss Exchange rate differences (34) Total other comprehensive income/(expense), net of taxes (74) Comprehensive income 3,22 Consolidated comprehensive income attributable to minority interest 3,938 Consolidated comprehensive income attributable to the parent company 26,264 These figures were reclassified compared to the originally published figures due to the retrospective application of IFRS 9 and IFRS 5. 74,564 (22) () (22) 74,442,623 72,89 225, (7,3) (6,879) 29,3,23 27,98 Consolidated interim financial report at 3 March 28 27

28 Consolidatd cash flow statement A. OPERATING ACTIVITIES Indirect method. Operations - profit (loss) for the period/year (+/-) - gains/losses on held-for-trading financial assets and financial assets/liabilities at FVTPL (-/+) - gains/losses on hedging activities (-/+) - net impairment losses for credit risk (+/-) - net impairment losses on property and equipment and intangible assets (+/-) - net accruals to provisions for risks and charges and other expenses/income (+/-) - taxes and tax credits still to be paid (+) - net impairment losses on discontinued assets, net of tax (+/-) - other changes (+/-) 2. Cash generated from or used by financial assets - held-for-trading financial assets - financial assets measured at fair value - other compulsorily assets measured at fair value - financial assets at FVTOCI - financial assets measured at fair value - financial assets at amortised cost - other assets 3. Cash generated from or used by financial liabilities - financial liabilities at amortised cost - financial liabilities held-for-trading - financial liabilities measured at fair value - technical reserves - other liabilities Net cash generated from or used by operating activities First quarter of 28 First quarter of ,657 26,438 48,426 3,73 2,497,74 5,49 2,75 95, (,734) 8,79 8,552 (36,794) (5,97) (263,297) (9,883) (7,644) (7,422) 65,258 72,94 (5,856) 3, ,727 (,353) (223,626) (225,94) (9,42),68,55 588,7 353, ,756 (4,47) (7,393) 43,342 28,794 24,786 28,548 5,858 6,383,443 4,776 (295,832) (276,983) (,69) (2,59) 3,89 379,82 2,525 32,4 (23,467) (,25) 364, G r u p p o A z i m u t

29 B. INVESTMENT ACTIVITIES First quarter of 28. Cash generated from - disposal of equity investments - dividends from equity investments - disposal of property and equipment - disposal of intangible assets - disposal of subsidiaries and business units 2. Cash used by (,885) - purchase of equity investments (,4) - purchase of property and equipment 98 - purchase of intangible assets (,592) - purchase of subsidiaries and business units 623 Net cash generated from or used by investment activities (,885) First quarter of 27 (8,84) (,647) (2,78) (3,756) (8,84) 27 (57,254) (47) (3,298) (5,653) (37,886) (57,254) C. FINANCING ACTIVITIES - issue/purchase of treasury shares - issue/purchase of equity instruments - dividends and other distributions - change in other reserves - sale/purchase of non-controlling interests Net cash generated from or used by financing activities Net cash generated or used for the period/year,997 (6,59) (5,763) (357) (9,664) (24,82) (559) (,345) (26,76) 395,442 (69,73) (34,95) (58,383) 3,764,67 (247,666) 59,854 RECONCILIATION First quarter of 28 Opening cash and cash equivalents 498,686 Total net cash generated/used for the period/year (9,664) Closing cash and cash equivalents 489,22 These figures were reclassified compared to the originally published figures due to the retrospective application of IFRS 9 and IFRS 5. First quarter of , , , ,832 59, ,686 Consolidated interim financial report at 3 March 28 29

30 Consolidated statement of changes in shareholders' equity for 3 March 28 Allocation of prior year profit (loss) Items Balance at Changes in opening balance Balance at..28 Reserves Dividends and other distributions Changes in reserves Share capital 32,324 32,324 Share premium reserve 73,987 73,987 Other reserves: a) income-related 379, ,578 24,786 b) other (4,49) (4,49) Valuation reserves (9,642) (9,642) Equity instruments 36, 36, Treasury shares (3,28) (3,28) Profit (loss) for the year 24,786 24,786 (24,786) Group shareholders equity 592, ,596 - Shareholders equity attributable to minority interest 9,592 9,592 3 G r u p p o A z i m u t

31 Changes during the year Shareholders equity transactions Issue of new shares Treasury share purchases Extraordinary dividend distribution Changes in equity instruments Other changes Consolidated comprehensive income for the nine-month period ended Group shareholders equity at Shareholders equity attributable to minority interest at ,324 69,89 73,987 (6,765) 587,599 (53,634) (4,49) 74 (9,468) (6,294) 36, (3,76) 42,73 (8,3) 26,438 26,438 3,938 (3,76) 35,38 26,62 624,44 (9,7) 3,938 3,829 Consolidated interim financial report at 3 March 28 3

32 Consolidated statement of changes in shareholders' equity for 3 March 27 Allocation of prior year profit (loss) Items Balance at Changes in opening balance Balance at..27 Reserves Dividends and other distributions Changes in reserves Share capital 32,324 32,324 Share premium reserve 73,987 73,987 Other reserves: a) income-related 369,76 (,9) 369,76 72,685 b) other (6,69) (6,69) Valuation reserves (4,674),9 (2,763) Equity instruments 7,95 7,95 Treasury shares (8,288) (8,288) Profit (loss) for the year 72,685 72,685 (72,685) Group shareholders equity 627,92 627,92 - Shareholders equity attributable to minority interest 7,975 7,975 These figures were reclassified compared to the originally published figures due to the retrospective application of IFRS 9 and IFRS G r u p p o A z i m u t

33 Changes during the year Shareholders equity transactions Issue of new shares Treasury share purchases Extraordinary dividend distribution Changes in equity instruments Other changes Consolidated comprehensive income for the nine-month period ended Group shareholders equity at Shareholders equity attributable to minority interest at ,324 4,827 73,987 (437) 539,53 (28,554) (6,69) (22) (2,885) 2,734 7,95 (24,82) (6,) 72,94 72,94,623 (24,82) - (437) 72,89 674,662 (2,968),623 6,63 Consolidated interim financial report at 3 March 28 33

34 Consolidated statement of changes in shareholders' equity for 3 December 27 Allocation of prior year profit (loss) Items Balance at Changes in opening balance Balance at..27 Reserves Dividends and other distributions Changes in reserves Share capital 32,324 32,324 Share premium reserve 73,987 73,987 Other reserves: a) income-related 369,76 (,9) 367,265 4,32 b) other (6,69) (6,69) Valuation reserves (4,674) (,9) (2,763) Equity instruments 7,95 7,95 Treasury shares (8,288) (8,288) Profit (loss) for the year 72,685 72,685 (4,32) (58,383) Group shareholders equity 627,92 627,92 - (58,383) Shareholders equity attributable to minority interest 7,975 7,975 These figures were reclassified compared to the originally published figures due to the retrospective application of IFRS 9 and IFRS G r u p p o A z i m u t

35 Changes during the year Shareholders equity transactions Issue of new shares Treasury share purchases Extraordinary dividend distribution Changes in equity instruments Other changes Consolidated comprehensive income for the nine-month period ended Group shareholders equity at Shareholders equity attributable to minority interest at ,324 63,235 73,987 (,989) 379,578 (5,736),66 (4,49) (6,879) (9,642) (3,3) (34,95) 36, (69,73) 2,972 (3,28) 24,786 24,786,23 (69,73) (34,95) 2,643 27,97 592,596 (9,56),23 9,592 Consolidated interim financial report at 3 March 28 35

36 36 G r u p p o A z i m u t

37 Basis of preparation Consolidated interim financial report at 3 March 28 37

38 Basis of preparation Accounting policies Statement of compliance with IFRS Pursuant to article 54-ter of Italian Legislative Decree no. 58 of 24 February 998 and subsequent amendments, the consolidated interim financial report of the Azimut Group at 3 March 28 has been prepared in accordance with the IAS/IFRS (International Accounting Standards/International Financial Reporting Standards) promulgated by the International Accounting Standards Board (IASB) and the related interpretations of the IFRS Interpretations Committee (formerly IFRIC) and the Standing Interpretations Committee (SIC) endorsed by the European Commission until the date of this report, as required by Regulation (EC) No. 66 of 9 July 22, implemented in Italy by Legislative Decree no. 38 of 28 February 25. General reporting criteria The consolidated interim financial report has been prepared in accordance with the IAS/IFRS endorsed and in force on 3 March 28. Other documents prepared by the IASB or the IFRS Interpretation Committee to supplement the reporting standards issued were considered for interpretation purposes and to support application, although they were not endorsed. These documents include: the Framework for the Preparation and Presentation of Financial Statements, the Implementation Guidance, the Basis for Conclusions, the IASB Update and the IFRIC Update. The consolidated interim financial report has also been drawn up based on the interpretative documents on the application of IAS/IFRS in Italy prepared by the Italian Accounting Standard Setter (OIC) and the ESMA (European Securities and Markets Authority) and Consob (the Italian Commission for Listed Companies and the Stock Exchange) documents which refer to specific IAS/IFRS. 38 G r u p p o A z i m u t

39 It comprises the consolidated financial statements (balance sheet, income statement, statement of comprehensive income, statement of changes in shareholders equity and cash flow statement) and the basis of preparation, and is accompanied by information on the performance of consolidated companies and the statement required by article 54-bis.2 of the Consolidated Law on Finance. The consolidated financial statements have been drawn up in accordance with the instructions issued by the Bank of Italy for the preparation of financial statements of IFRS financial intermediaries, other than banking intermediaries on 22 December 27. The Instructions lay down the mandatory financial statements schedules formats and how they must be filled in and the content of the notes thereto for asset management companies that were adequately adjusted to better represent the Group's financial position and business activities, which include the Irish insurance company Az Life dac. In particular, the balance sheet and income statement include the items which are typical of the insurance business, taking as a reference ISVAP (now IVASS) Regulation No. 7 dated 3 July 27 concerning the provisions governing the consolidated financial statements of insurance companies drawn up on the basis of IAS/IFRS. The consolidated interim financial report has been drawn up using the euro as the reporting currency. Specifically, in line with the instructions issued by the Bank of Italy, consolidated financial statements figures are presented in thousands of euros, unless otherwise specified. Figures were rounded considering the above instructions issued by the Bank of Italy. The consolidated interim financial report has been published within 45 days of the end of the first quarter of the year and has not been audited by the independent auditors. Consolidated interim financial report at 3 March 28 39

40 Basis of preparation Accounting policies The IAS/IFRS applied to prepare the Azimut Group's consolidated financial statements, governing the classification, recognition, measurement and derecognition criteria of asset and liability items and the recognition of income and expense are those in force at the drafting date of this report, as endorsed by the European Union. For information on the classification, recognition, measurement and derecognition criteria of the main items, reference should be made to that set out in Part A.2. of the Notes to the Azimut Group's consolidated financial statements at 3 December 27. In addition to that set out in Part A.2, following the completion of the endorsement procedure, the following amendments to IAS/IFRS became effective on January 28. IFRS 9 - Financial Instruments: (issued on 24 July 24). This document encompasses the results of the IASB project to replace IAS 39: it introduces new criteria to classify and measure financial assets and financial liabilities; with respect to the impairment model, under the new standard, expected credit losses are estimated using the expected losses model (instead of the incurred losses model used by IAS 39), using supportable information that is available without undue cost or effort and that includes historical, current and forwardlooking data; it introduces a new hedge accounting model (increase of the type of transactions eligible for hedge accounting purposes, change in the accounting treatment of forward contracts and options when they form part of a hedge accounting relationship, changes to the test of effectiveness). The impact on the consolidated financial statements arises from the classification and measurement of financial instruments which, up to now, were classified under Available-for-sale financial assets (currently comprised of UCI units and Equity securities). With respect to UCI units, not held for trading, the new standard confirms the fair value measurement, but takes the related changes to profit or loss, rather than to a specific Equity reserve. Upon first-time adoption, the fair value changes recognised up to such date (3 December 27) continue to be recognised in equity and will never be transferred to profit or loss, even when the financial instrument which generated them is sold. With respect to Equity instruments, not held for trading, in which the Group holds an equity investment of below 2%, the fair value measurement will be applied with a balancing entry in a specific Equity reserve. Fair value changes will never be transferred to profit or loss, including in the case of sale of the equity instruments. Finally, financial instruments comprised of government securities will be measured at amortised cost. At 3 December 27, the Equity valuation reserve was negative by 3.9 million euro. 4 G r u p p o A z i m u t

41 IFRS 5 - Revenue from Contracts with Customers: (issued on 28 May 24 and integrated with additional clarifications issued on 2 April 26). This document will replace IAS 8 - Revenue and IAS - Construction Contracts, and the interpretations IFRIC 3 - Customer Loyalty Programmes, IFRIC 5 - Agreements for the Construction of Real Estate, IFRIC 8 - Transfers of Assets from Customers and SIC 3 Revenues-Barter Transactions Involving Advertising Services. The standard introduces a new revenue recognition model which will apply to all contracts entered into with customers, except for those which fall in the scope of other IAS/IFRS, such as leases, insurance contracts and financial instruments. Under the new model, revenue is to be recognised in accordance with the following steps: identify the contract with a customer; identify the performance obligations in the contract; determine the price; allocate the price to the performance obligations in the contract; recognise revenue when the entity satisfies each performance obligation. Consolidated interim financial report at 3 March 28 4

42 Accounting standards, amendments and interpretations in force from January 28 Standards IFRS 4 Regulatory deferral accounts IASB publication date 3 January 24 Endorsement date n.a.* Date of coming into force n.a. * IFRS 9 Financial instruments 24 July November 26 January 28 IFRS 5 Revenue from contracts with customers and amendments 28 May 24 and September September 26 January 28 IFRIC 22 Foreign currency transactions and advance consideration 7 February January 28** Amendments Amendments to IFRS 2: Classification and measurement of share-based payment transactions Amendments to IFRS 4: Applying IFRS 9 - Financial instruments Amendments to IAS 4: Transfers of investment property Annual improvements to IFRS cycle IASB publication date 2 June 26 2 September 26 8 December 26 6 February 27 Endorsement date 26 February 28 3 November February 28 Date of coming into force January 28 January 28 January 28** January 28 Clarifications IASB publication date Endorsement date Date of coming into force Clarifications to IFRS 5: Revenue from 2 April 26 3 October 27 January 28 contracts with customers 42 G r u p p o A z i m u t

43 Accounting standards, amendments and interpretations which will come into force Standards IFRS 4 Regulatory deferral accounts IASB publication date 3 January 24 Endorsement date n.a.* Date of coming into force n.a.* IFRS 6 Leases 3 January 26 3 October 26 January 29 IFRS 7 "Insurance contracts" 8 May January 22 Amendments IASB publication date Endorsement date Date of coming into force Amendments to IFRS 9: prepayment features with negative compensation 2 October January 29** Amendments to IAS 28: long-term interests in associates and joint ventures 2 October January 29** Annual improvements to IFRS cycle 2 December January 29** Amendments to IAS 9: plan amendments, curtailments, and settlements 7 February January 29** Consolidated interim financial report at 3 March 28 43

44 Consolidation scope The consolidated interim financial report of the Azimut Group includes the balance sheet and income statement figures of Azimut Holding S.p.A. and the direct and indirect subsidiaries. Subsidiaries The Azimut Group consolidation scope has been established in accordance with IFRS. Specifically, subsidiaries are those companies in respect of which the Azimut Group is exposed, or has rights, to variable returns from its involvement with the investees and has the ability to affect those returns through its power over the investees. Control exists only when the following elements simultaneously exist: (i) the power to direct the relevant activities; (ii) exposure, or rights, to variable returns from involvement with the investee; (iii) the ability to use its power over the investee to affect the amount of its returns. Associates Associates are those companies subject to significant influence, i.e. companies in which the Azimut Group, either directly or indirectly, holds at least 2% of the voting rights (including potential voting rights) or in which - despite holding a smaller percentage of voting rights - has the power to participate in the financial and operating policy decisions, such as the participation in shareholders' agreements, due to specific legal relationships. These companies are consolidated using the equity method whereby on initial recognition the investment is recognised at cost, and the carrying amount is increased or decreased to recognise the investor s share of the equity of the investee after the date of acquisition, using the most recently approved financial statements of the companies. The difference between the carrying amount of the equity investment and the investee's share of equity is included in the carrying amount of the investee. Changes to the consolidation scope The changes to the consolidation scope compared to 3 December 27 refer to the consolidation of SDB Financial Solutions SA, based in Switzerland, in which AZ Swiss & Partners has a 5% investment. 44 G r u p p o A z i m u t

45 Wholly and jointly-owned subsidiaries Name Registered office Type of ownership (*) Stake Shareholder % stake Voting rights % A. Wholly-owned companies consolidated on a line-by-line basis. Azimut Capital Management SGR S.p.A. Italy Azimut Holding S.p.A. 2. AZ Fund Management SA Luxembourg Azimut Holding S.p.A. 5 5 Azimut Capital Management Sgr S.p.A. 3 3 Azimut Financial Insurance S.p.A AZ Life Dac Ireland Azimut Holding S.p.A. 4. Azimut Global Counseling S.r.l. Italy Azimut Holding S.p.A. 5. Azimut Enterprises Holding S.r.l. Italy Azimut Holding S.p.A. 6. Azimut Analytics S.r.l. Italy Azimut Enterprises Holding S.r.l Azimut Libera Impresa Sgr S.p.A. Italy Azimut Holding S.p.A. 8. Azimut Financial Insurance S.p.A. Italy Azimut Holding S.p.A. 9. AZ International Holdings S.A. Luxembourg Azimut Holding S.p.A.. An Zhong (AZ) Investment Management Hong Kong AZ International Holdings SA. An Zhong (AZ) Investment Management Hong Kong Ltd Hong Kong AN Zhong (AZ) Investment Management 2. An Zhong Investment Management (Shanghai) Co. Ltd. Shanghai An Zhong (AZ) Investment Management Hong Kong Ltd 3. Compagnie de Gestion priveè Monegasque Monaco AZ International Holdings SA 4. CGM Italia SGR S.p.A. Italy Compagnie de Gestion privée Monegasque 5. Katarsis Capital Advisors SA Switzerland AZ International Holdings SA 6. Eskatos Capital Management Sarl Luxembourg Katarsis Capital Advisors SA 7. AZ Swiss & Partners SA Switzerland AZ International Holdings SA AZ Sinopro Investment Planning Ltd Taiwan AZ International Holdings SA AZ Sinopro Investment Planning Ltd Taiwan AZ Sinopro Financial Planning Ltd AZ Sinopro Insurance Planning Ltd Taiwan AZ Sinopro Investment Planning Ltd AZ Investment Management Singapore Ltd Singapore AZ International Holdings SA 22. AZ Brasil Holdings Ltda Brazil AZ International Holdings SA AZ Quest Participações SA Brazil AZ Brasil Holdings Ltda AZ Quest Investimentos Ltda Brazil AZ Quest Participações SA Azimut Brasil Wealth Management Holding SA Brazil AZ Brasil Holdings Ltda Consolidated interim financial report at 3 March 28 45

46 26. M&O Consultoria, Planejamento e Análise de Valores Mobiliários Ltda Brazil Azimut Brasil Wealth Management Holding S.A Futurainvest Investimentos e Participações Ltda Brazil Azimut Brasil Wealth Management Holding S.A Azimut Brasil Wealth Management Ltda Brazil Azimut Brasil Wealth Management Holding S.A Futurainvest Holding SA Brazil AZ Brasil Holdings Ltda Azimut Brasil DTVM Ltda Brazil Futurainvest Holding SA Azimut Portföy Yönetimi A.Ş. Turkey AZ International Holdings SA 32. AZ Mexico Holdings S.A. de CV Mexico AZ International Holdings SA Mas Fondos SA Mexico AZ Mexico Holdings S.A. de CV AZ Next Generation Advisory PTY Ltd AZ International Holdings SA 35. Eureka Whittaker Macnaught PTY Ltd AZ Next Generation Advisory PTY Ltd 36. Pride Advice PTY Ltd AZ Next Generation Advisory PTY Ltd 37. Lifestyle Financial Planning Services (LFPS) PTY Ltd AZ Next Generation Advisory PTY Ltd 38. Eureka Financial Group PTY Ltd AZ Next Generation Advisory PTY Ltd 39. Pride Financial PTY Ltd AZ Next Generation Advisory PTY Ltd 4. Wise Planners PTY Ltd AZ Next Generation Advisory PTY Ltd 4. Domane Financial Advisers PTY Ltd Wise Planners PTY Ltd 42. Financial Lifestyle Partners PTY Ltd AZ Next Generation Advisory PTY Ltd 43. Harvest Wealth PTY Ltd AZ Next Generation Advisory PTY Ltd 44. RI Toowoomba PTY Ltd AZ Next Generation Advisory PTY Ltd 45. Empowered Financial Partners PTY Ltd AZ Next Generation Advisory PTY Ltd 46. Wealthwise PTY Ltd AZ Next Generation Advisory PTY Ltd 47. Priority Advisory Group PTY Ltd AZ Next Generation Advisory PTY Ltd 48. Sterling Planners PTY Ltd AZ Next Generation Advisory PTY Ltd 49. Logiro Unchartered PTY Ltd AZ Next Generation Advisory PTY Ltd 5. Aspire Pty Ltd Logiro Unchartered PTY Ltd 5. On-Track Financial Solutions Pty Ltd AZ Next Generation Advisory PTY Ltd 52. AZ Sestante Ltd AZ International Holdings SA 53. AZ Andes S.p.A. Chile AZ International Holdings SA Sigma Funds Management PTY Ltd AZ International Holdings SA AZ US Holding Inc. United States AZ International Holdings SA 56. AZ Apice Capital Management LLC United States AZ US Holding Inc Pride SMSF PTY Ltd Pride Financial Pty Ltd 58. Priority Advisory Trust Priority Advisory Group PTY Ltd 46 G r u p p o A z i m u t

47 59. Priority Lifestile Advice Pty Ltd Wise Planners Pty Ltd Priority Advisory Group Pty Ltd 6. Peters & Partners Pty Ltd AZ Next Generation Advisory Accounting PTY Ltd 6. Menico Tuck Parrish Financial Solution Pty Ltd AZ Next Generation Advisory PTY Ltd 62. AZ Next Generation Accounting Pty Ltd AZ Next Generation Advisory PTY Ltd 63. AZ New Horizon Ltd United Arab Emirates AZ International Holdings SA Wealthmed Pty Ltd AZ Next Generation Advisory PTY Ltd 65. Wealthmed Accounting Pty Ltd Wealthmed Pty Ltd 66. Wealthmed Property Pty Ltd Wealthmed Pty Ltd 67. Wealthmed Financial Planning Pty Ltd Wealthmed Pty Ltd 68. Farrow Hughes Mulcahy Financial Services Pty Ltd AZ Next Generation Advisory PTY Ltd 69. H&H Wealth Management Pty Ltd Priority Advisory Group Pty Ltd 7. Menico Tuck Parish Pty Ltd AZ Next Generation Advisory PTY Ltd 7. Henderson Maxwell No.2 Pty Ltd AZ Next Generation Advisory PTY Ltd 72. Henderson Maxwell Financial Planning Pty Ltd Henderson Maxwel No.2 Pty Ltd 73. Henderson Maxwell Accounting Pty Ltd Henderson Maxwel No.2 Pty Ltd 74. Herwitz Geller Pty Ltd AZ Next Generation Accounting PTY Ltd 75. Dunsford Financial Plannings Pty Ltd AZ Next Generation Advisory PTY Ltd 76. SDB Financial Solutions SA (**) Switzerland AZ Swiss & Partners SA 5 5 (*) Type of ownership: () Majority of voting rights at ordinary shareholders meetings (**) Newly consolidated compared to 3 December 27 Consolidated interim financial report at 3 March 28 47

48 Investments measured at equity Name Companies measured at equity Registered office Stake Shareholder % Stake Voting rights %. Cofircont Compagnia Fiduciaria srl Italy Azimut Enterprises Holding Srl SiamoSoci srl Italy Azimut Enterprises Holding Srl Ipo Challenger Spa Italy Azimut Global Counseling Srl/Ipo Club Sterling Planners WA Sterling Planners Pty Ltd Mofid Entekhab Asset Management (**) Iran AZ International Holdings SA 2 2 (**) Newly consolidated compared to 3 December G r u p p o A z i m u t

49 Statement pursuant to article 54-bis.2 of the Consolidated Law on Finance Consolidated interim financial report at 3 March 28 49

50 5 G r u p p o A z i m u t

51 Statement pursuant to article54-bis.2 of the Consolidated Law on Finance The Manager in charge of financial reporting, Alessandro Zambotti, represents pursuant to Article 54-bis, par. 2 of the Consolidated Law on Finance, that the accounting information presented in this Consolidated interim financial report at 3 March 28 is consistent with the accounting documents, books and records. Milan, May 28 The Manager in charge of financial reporting (Alessandro Zambotti) Consolidated interim financial report at 3 March 28 5