3Q12 Results. Milan, 8 th November Short termism is institutionally banned

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1 3Q12 Results Milan, 8 th November 2012

2 3Q12 Results Table of contents 3Q12 Highlights Asset Management Distribution 3Q12 Financials Outlook About Azimut 2

3 3Q12 Results 3Q12 Highlights Asset Management Distribution 3Q12 Financials Outlook About Azimut 3

4 3Q12 Highlights Numbers speak for themselves successful business model, delivering in good and bad times Total Revenues 9M12 Total revenues: 322 million vs. 244 million in 9M11 Financials Net Profit 9M12 Net profit: 121 million vs. 57 million in 9M11 All time high net profit Net Financial Position NFP: 202 million vs. 73 million at 9M11 Already net of 34 million dividends paid in May All time high 9M total revenues Overcome FY net profit of the last 3 years, including our record FY2009 results Highest level of Net Financial Position +32% +112% +177% Source: Company data 4

5 3Q12 Highlights Numbers speak for themselves successful business model, delivering in good and bad times Assets under Management Group Total AuM at 30 September 2012 reached 19.2 billion, an increase of 4 billion vs. 30 September billion of managed assets (+ 3.8 billion vs. 30 September 2011) Total Inflows Total Inflows at 30 Sept of 1.2 billion Almost entirely into managed assets standing at 1.1 billion All time high Assets under Management maintained +26% +28% Excellent inflows, in line with our record 2007 result +554% Source: Company data 5

6 Assets under Management evolution Managed AuM growth continues, fully capturing support from market performance +28% +17% Managed AuM growth has been consistent over the past few years: +28% in a 3 year period +17% in 2012YTD, thanks to positive inflows and supportive markets October 2012 net inflows into managed assets reached 125 million 9M 2012 managed inflows make up 115% of the entire managed inflows of 2011 Total Group AuM as of 30/09/2012 (including assets under administration) stood at 19.2bn, +16% vs. 31/12/2011 Source: Company data 6

7 3Q12 Results 3Q12 Highlights Asset Management Distribution 3Q12 Financials Outlook About Azimut 7

8 Asset Management Performance Weighted average performance of our funds in excess of 6% YTD completely recovred 2011 result Source: Bloomberg Risk free: MTSIBOTR Index (net of 20% withholding tax) Italian industry index: FIDMGEND Index 8

9 Asset Management Evolution Fund of Funds are quite entirely for asset classes not managed in house Source: Company data 9

10 Luxembourg Funds 3Q12 breakdown Fund of funds have the same margin as in house funds TARGET 0 30% EQUITY 0 70% EQUITY FORMULA TARGET 2014, FORMULA TARGET 2015, INSTITUTIONAL TARGET, BOND TARGET 2015, BOND TARGET GIUGNO 2016, INTERNATIONAL BOND TARGET GIUGNO 2016, BOND TARGET SETTEMBRE 2016, BOND TARGET DICEMBRE 2016 F1 CONSERVATIVE, CORPORATE PREMIUM, CGM OPPORTUNISTIC CORPORATE, CGM OPPORTUNISTIC GOVERNMENT, SOLIDITY EUROPEAN DYNAMIC, DIVIDEND PREMIUM, STRATEGIC TREND 0 100% EQUITY MARKET NEUTRAL QUANT MACRO COMMODITIES EQUITY LONG/SHORT MULTI CASH MANAGEMENT OTHER FOFs F1 ABSOLUTE, TREND, ITALIAN TREND, PACIFIC TREND, AMERICAN TREND, EUROPEAN TREND, LONG TERM VALUE, CGM OPPORTUNISTIC EUROPEAN, CGM OPPORTUNISTIC GLOBAL, GLOBAL GROWTH SELECTOR F1 ALPHA PLUS, MARKET NEUTRAL QBOND, QPROTECTION, QTREND, QINTERNATIONAL MACRO DYNAMIC TRADING, GLOBAL MACRO COMMODITY TRADING ACTIVE SELECTION, CORE BRANDS ACTIVE STRATEGY CASH OVERNIGHT, CASH 12 MONTH OTHER SINGLE MANAGER (RMB OPP., CAT BOND, MACRO VOLATILITY, GLOBAL CURRENCIES & RATES, ETC.) MULTIMANAGER FOFs Source: Company data at 30/09/

11 Azimut funds breakdown By Category By underlying asset Total Equity 32% Source: Company data at 30/09/

12 Azimut Funds breakdown by underlying securities Equities Fixed Income Austria, Belgium, Finland, France, Germany, Italy, Netherlands Source: Company data at 30/09/

13 Product innovation: Azimut success story Innovation has and will be one of Azimuts key success factors Despite a volatile market environment, new products have helped to defend the existing client base and attract net new money from existing and new customers 2011 YtD New products AuM / Total managed AuM 2008 YtD New products AuM / Total managed AuM Source: Company data at 30/09/

14 3Q12 Results 3Q12 Highlights Asset Management Distribution 3Q12 Financials Outlook About Azimut 14

15 Distribution Funds Funds net inflows as a % of total managed assets Azimut Italian Funds Industry * Source: Company out of Assogestioni monthly figures Note *: CGM acquisition 15

16 Distribution Recruitment of FAs Azimut continues to recruit top quality financial advisors 31/12/11 In Churn 30/09/12 Assoreti Sept figures Managed assets inflows 2012YTD ( m) Managed assets inflows per FA ( 000) 1, % 1, % % 103 TOTAL 1, % 1, Churn includes retired FAs Apogeo PFs do not include hiring by the former Cattolica sim Azimut ranks 1 st in managed assets inflows per FA among Italian players Source: Company data, Assoreti 16

17 3Q12 Results 3Q12 Highlights Asset Management Distribution 3Q12 Financials Outlook About Azimut 17

18 Consolidated reclassified Income Statement IAS/IFRS Compliant Income Statement 9M12 results beat 3 consecutive years of FY net profit, including our record FY2009 result Source: Company data 18

19 Consolidated reclassified Balance Sheet IAS/IFRS Compliant Balance Sheet Treasury shares are not booked within the NFP but in the balance sheet for 100 million (as of 30/09/2012: 12mln shares or 8.4% of s.c.). NFP at the end of September is net of: 34mln for dividends paid (May 24) On July 1 st 2012 the company partially repaid 17.7mln of the Azimut 4% subordinated bond Source: Company data 19

20 3Q12 Results 3Q12 Highlights Asset Management Distribution 3Q12 Financials Outlook About Azimut 20

21 Outlook Excellent 9M12: set to deliver a record FY2012 while remaining focused on performance and economics What s done What s next FINANCIAL RESULTS INFLOWS & AUM PRODUCT INNOVATION INTERNATIONAL EXPANSION Record net profit: +112% vs. 9M11 and overcome FY net profit of the last 3 consecutive years (including our record FY 2009) Strong variable fees, reaching almost the same level of FY2011 and FY2010 put together Preserved a risk free balance sheet and strong cash flow generation AuM at all time high Strong inflows throughout the year, thanks to both retail and institutional clients Network delivering good results Launched important new products in 2012 as an answer to our clients needs Above 22% of Azimut s AuM is coming from products launched since 2011 Officially kick started JVs in China and Turkey while relocating some Portfolio Managers in both regions to better manage the business Continue to maintain a healthy balance sheet > Azimut is not a Bank (Basel III) or Insurance (Solvency II), hasno toxic assets and does not inflate profits from the use of LTRO Preserve Azimut superior margins and best in class cash flow generation 2013 dividend per share to be potentially increased Assuming no further variable fees for the rest of the year, net profit for FY2012 could still be in the region of million On track to deliver 2012 inflows in the high end of the target range 1 1.5bn per year. Same level maintained for FY2013 Increased AuM of 4bn in 1 year, on track to deliver afurther 8bn in the next 2 years to reach our targeted 27bn AuM by end 2014 Continue remaining number 1 in product innovation Focus on client needs while not changing our DNA: Azimut is an equity house offering unique and successful products mainly through flexible funds Focused on launching potential JVs in South America Open for other potential acquisitions abroad on an opportunistic basis 21

22 3Q12 Results 3Q12 Highlights Asset Management Distribution 3Q12 Financials Outlook About Azimut 22

23 Azimut Group structure Azimut Holding (Listed: AZM.IM) 100% AZ International Holdings (2010) 65% An Zhong (AZ) IM (2011) 100% 100% 100% 100% 60% Asset Management Life insurances Distribution Trustee AZ Fund (1999) Azimut CM (2004) Azimut Cons. (1988) AZ Life (2003) Azimut Fiduc. (2007) Azimut Sgr (1986) 100% 100% AZ CM (2007) 100% 100% 100% 100% 100% AZ Investimenti (2005) Apogeo Cons. (2008) An Zhong (AZ) IM HK (2011) AZ Swiss (2012) 90% AZ IM (2011) 50% Katarsis CA (2011) Eskatos CM (2011) 100% GAM Turkey (2011) CGM (2011) CGM SIM (2011) 51% 100% 5% Global Securities (2011) Source: Company data as at 31/10/

24 Going International Where we are and where we want to be: 10% of AuM outside Italy by 2014 Azimut and Siqurgest launch an asset management and distribution partnership in Switzerland targeting HNWI and Institutional clients. Azimut enters the Venture Capital sector with Earlybird for the launch of a closed end fund dedicated to qualified investors with the objective of investing in Italian start up companies active in the technology sector Acquisition of Swiss company Katarsis Capital Advisors and its Luxembourg subsidiary Eskatos Capital Management. Eskatos is one of the 3/5 companies managing ILS (Insurance Linked Securities) funds domiciled in the EU. Azimut launches AZ Swiss joint venture with a team of portfolio managers in Switzerland focusing on macro strategies. Acquisition of CGM, a Monaco based independent asset management company. Azimut current presence Azimut potential expansion Acquisition of Turkey s Global Asset Management and Global Securities. Aiming at covering all 3 macro areas (Americas, EMEA, Asia Pacific) and time zones while offering a worldwide service to our clients Azimut and CMT launch An Zhong Investment Management in Hong Kong and Shanghai specializing in asset management and investment advisory 24

25 International expansion China / HK 2010: Definition of a frame agreement with local entrepreneurs/partners (CMT) AZ International Holdings (2010) 65% CMT Holding (2011) 35% Azimut s partnership philosophy has been implemented also in China by involving the local partners, CMT Holding (acronym for China Management Team), in the shareholding of the new venture, aligning the interests of all stakeholders. An Zhong (AZ) IM HK (2011) An Zhong (AZ) IM (2011) 100% 100% AZ Investment Management (2011) An Zhong (AZ) Investment Management in Hong Kong is the Holding company controlling two operating subsidiaries. Azimut, through the Holding company, oversees them and relocated three Senior PMs from Luxembourg. Through the operating subsidiaries Azimut aims at creating a regional hub and developing local production and distribution of asset management products and investment advisory services with a focus on qualified investors. 25

26 International expansion Turkey 2011: Definition of a frame agreement with local entrepreneurs/partners (Global Investment Holdings) AZ International Holdings (2010) Global Yatirim Holding On 14th March 2011 AZ International Holdings S.A. ( AIH ) signed a binding frame agreement with Global Yatirim Holding and Global Portfoy Yonetimi ( GAM ) to implement a partnership in the AM and distribution business in Turkey. 60% 5% GAM Turkey (Asset management) Global Securities (Trading + Distribution) 40% 75% In particular, AIH has purchased 5% of the distribution company s share capital (Global Menkul Değerler) during its IPO on the Istanbul Stock Exchange while Global Yatirim Holding holds around 75% of the capital. Subsequently on 28 th February 2012, through a capital increase, Azimut has completed the acquisition of 60% of the asset management company s share capital, Global Portföy. Through a team of dedicated Azimut people, Global and Azimut are re structuring the product range and creating a sales force focused on the distribution of mutual funds in order to attract new clients and AuM. 26

27 International expansion Monaco 2011: Agreement for a 51% stake acquisition AZ International Holdings (2010) On 10th May 2011 Azimut through its subsidiary AZ International Holdings S.A. ( AIH ) signed a binding frame agreement with CGM (Compagnie de Gestion privée Monegasque); the acquisition of a 51% stake has been completed on 30 th December % CGM (Asset management) 100% CGM Italia SIM AuC of CGM stood at nearly 800m (o/w more than 600m AuM) consideration of ~ 15m (including shareholders equity) paid entirely with treasury shares The partnership adds new competences to Azimut Group targeting UHNWI also thanks to CGM s operating subsidiary in Italy Current CGM management entered Azimut s shareholders agreement 27

28 Azimut s pre IPO history 1988: Azimut is established by Akros Finanziaria SpA : Pietro Giuliani and most of the current top management of Azimut join the company and start the recruitment of top level professionals for the distribution network (organised in 6 regional companies) and the fund managers team. Azimut Holding 20.0% Azimut Piemonte 80.0% 20.0% Azimut Lombardia 80.0% 80% 20.0% Azimut Triveneto 80.0% Promotori 1998: Bipop Carire acquires Azimut, which continues to operate independently December 2001: as a result of the Bipop restructuring, Azimut s management buys out the business. Approximately 700 people invested in the MBO, completed by June % 20.0% Azimut Liguria Toscana 80.0% 20.0% Azimut Adriatica December 2002: The 6 regional distribution companies merged into Azimut Consulenza SIM 2004: Azimut s IPO Azimut Holding 100.0% Azimut Consulenza SIM 65.0% 35.0% 80.0% Apax Management and Promotori 20.0% Azimut Centro sud 80.0% 28

29 Azimut s shareholder base Total shares issued: 143.3m Treasury shares: in excess of 7.5% of share capital Timone Fiduciaria represents the shares of around 1,200 individual shareholders (Promotori, employees, managers working for Azimut), tied up in a strong shareholders agreement. Free float breakdown Source: Consob, November

30 Timone the Shareholders agreement A strong agreement for a long term commitment Participants Promotori, employees and management organised in separate areas Duration 3 years automatically renewed unless the absolute majority of the voting rights refuses. Already renewed in 2007 and 2010 Share lock up Governance 75% of each participant s shares are locked until retirement, regardless of the tenure within the Group The residual 25% can be sold at any time but subject to pre emption right amongst other participants. The price for this transfer is a 30 days rolling average. A share trust includes 100% of the voting rights of the participants. A committee is responsible for managing and monitoring the participants obligations and rights under the agreement 30

31 Main growth trend Clients, FAs and AuM Continuous growth throughout the decade, notwithstanding turbolent years Source: Company data as of 31/12/

32 AuM, Net Inflows and Performance Net inflows Performance Note: Data in million Includes managed assets only 32

33 A beta stock with a strong P&L Solid financial performance ( mln) Source: Company data as of 30/09/

34 Contacts & Corporate calendar IR Contacts Vittorio Pracca tel Upcoming events New 2013 corporate calendar to be announced Gabriele Blei tel IR Website 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 forany loss howsoeverarising from any use of this presentation or its contents or otherwise arising in connection therewith. Theinformationinthisdocumentmight includeforward lookingstatementswhicharebasedoncurrentexpectationsandprojectionsaboutfutureevents. Theseforward 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 ofa number of assumptions which may prove to be incorrect and, accordingly, actual resultsmayvary. 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. 34