ANALYST MEETING 2007 ACTIVITY AND 2008 OUTLOOK. Short termism is institutionally banned

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1 ANALYST MEETING 2007 ACTIVITY AND 2008 OUTLOOK Milan, January 15 th, 2008

2 2008 Analyst meeting Summary 2007 Highlights 2007 Asset Management 2007 Distribution 2007 Preliminary financials 2008 Outlook Contacts 2

3 2008 Analyst meeting 2007 Highlights 2007 Asset Management 2007 Distribution 2007 Preliminary financials 2008 Outlook Contacts 3

4 2007 Highlights Delivering in a turbulent environment Net inflows into managed assets were in excess of 1.4 billion, of which about 75% in mutual funds (mostly flexible portfolios), and about 25% in hedge funds Net profit will be in the range m (vs. 85m in 2006) Recruitment back at a sustained pace with more than 130 gross new hiring in the two networks, with a high quality and productivity. AZ Investimenti ranks 7 th for 2007 ytd net inflows into managed assets Successful launch of new products and initiatives 4

5 2008 Analyst meeting 2007 Highlights 2007 Asset Management 2007 Distribution 2007 Preliminary financials 2008 Outlook Contacts 5

6 2007 Asset management Difficult year, but sticking to our investment style 10 years of performance... Seen something better, done something worse 25% AZM IND RFR 20% 15% 10% 5% 0% -5% -10% -15% Source: Bloomberg for risk free ITGCBOTG Index, net of 12.5% withholding tax and FIDMGEND Index for Italian AM Industry 6

7 2007 Asset management Difficult year, but sticking to our investment style One year of modest performance... happens We don t t need necessarily to be always the best over the short term, but t we strive and aim to perform consistently over the long term across one full market m cycle WE DID Keep overweight in equities, though reducing exposure from 53% at the end of 2006 down to less than 40% at the end of 2007, similar to the level of Fall 2002 Prepare clients through our FAs to expect difficult years already since January 2005 Launch new products in the years tailored for a more volatile environment WE DIDN T Change our investment style Become emotional Run unnecessary risks (no exposure to subprime or ABS, CDOs ) Shake up to its root our funds asset allocation 7

8 2007 Asset management Figures back Azimut s strong performance over the medium/long term Azimut overperformance is not affected by short-term modest results bps 35 AZM overperformance vs. industry 1-3-5ys bps 17 Industry well below net risk free ys 10-8 bps AZM overperformance vs. net risk free 1-3-5ys ys ys ys of returns AZM IND RFR ,20% 11,04% 3,76% ,96% 9,39% 2,80% ,41% -4,39% 3,53% ,04% -6,09% 4,20% ,88% -6,50% 3,15% ,45% 2,36% 2,11% ,03% 2,74% 1,83% ,89% 5,30% 1,80% ,46% 3,01% 2,46% ,33% 1,29% 3,52% Source: Bloomberg for risk free ITGCBOTG Index, net of 12.5% withholding tax and FIDMGEND Index for Italian AM Industry Simulation based on 100 invested at the end of 1997, with reinvestment of all profits in the following year 8

9 2007 Asset management Key role of distribution through captive and fidelised financial agents Distribution has a key role in ensuring client satisfaction and retention A year of modest performance for a fund does not become worse due to outflows: in 2007 Azimut Trend, one of the Group s mutual funds flagship, had a negative performance; its strategy* had in the same period only 93m gross outflows (less than 5% of total AuM). The reasons: excellent track record of the PM (the same since the fund s inception in 1993), the peculiarity and consistency of his investment style (long-term, overweight in equities), the agents can understand the fund s behaviour through different market cycles but also that in the short term it can suffer due to its heavy equity exposure. For the same reasons of long track record and peculiar investment style, F1 funds, (also managed by the same PM since their 1999 inception) collected in ,944m with a WAP in the strategy of 4.4% Top 5 mutual funds by AuM Top 5 mutual funds by inflows return Trend Protezione Trend F1 Conservative F1 Conservative +3.90% Protezione Trend F1 Conservative F1 Balanced F1 Balanced +4.76% Bilanciato Eurobond Protezione Trend Q Protection +2.96% Trend Italia Bilanciato F1 Balanced F1 Absolute F1 Absolute +6.51% Trend Tassi F1 Conservative Italian Trend Italian Trend European Balanced +2.68% WAP= +4,32% *Sum of the AuM in both Italian and Luxembourg domiciled funds 9

10 2007 Asset management working according PMs advice and taking advantage of ongoing product innovation Distribution works following the advice of PMs re. asset allocation in order to manage the different client expectations according to their risk-return profiles Product innovation, a constant commitment for Azimut, proves to be successful and helpful to enhance the relationship both with existing and new clients. Some examples of the recent past: -July Launch of the first single manager HF. Azimut is now leader in Italy for this category of HFs with a market share in excess of 40% in spite of its short track record. Aliseo, a family of long-short equity funds managed pari-passu, boasts now assets in excess of 1bln with very good results in terms of performance -February Launch of the first mutual fund using Quant techniques, Q-Protection, aimed at protecting 90% of the highest NAV recorded on an individual basis. Product tailored to consolidate recent years gains in light of a more volatile environment. The fund had at the end of 2007 AuM in excess of 521 million, among the top 10 by size of the Group, with a performance since inception close to 3% net of fees -February Launch of the new bond fund AZFund Income which had a 2007 return of 2.8% whilst the Fideuram bond funds index in the same period is up by 1.4% Existing products also offered remarkable performance: Azimut Bilanciato had a 2007 performance of 4.6% net of fees and tax, whilst the Fideuram balanced funds index in the same period is negative by 94 bps Azimut Trend Italia had a 2007 performance of -0.6% net of fees and tax, with the Mibtel index down by 7.6% in the same period 10

11 2007 AM Funds highlights F1 funds: a winning strategy for a volatile environment Total AuM in this strategy on 31 Dec 2007: 6.2 bln F1 CONS F1 BALA F1 ABSO RF NET /01/ /01/ /01/ /02/ /02/ /03/ /03/ /04/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /07/ /08/ /08/ /09/ /09/ /10/ /10/ /11/ /11/ /12/ /12/ /12/2007 Source: Bloomberg. Risk free ITGCBOTG Index, net of 12.5% withholding tax

12 2008 Analyst meeting 2007 Highlights 2007 Asset Management 2007 Distribution 2007 Preliminary financials 2008 Outlook Contacts 12

13 2007 Distribution Net inflows as a % of total managed assets Another year in counter-tendence to the industry 5% Azimut Italian Industry 4% 3% 2% 1% 0% -1% -2% 5% 4% 3% 2% 1% 0% -1% -2% 13 jan-03 feb-03 mar-03 apr-03 may-03 jun-03 jul-03 aug-03 sep-03 oct-03 nov-03 dec-03 jan-04 feb-04 mar-04 apr-04 may-04 jun-04 jul-04 aug-04 sep-04 oct-04 nov-04 dec-04 jan-05 feb-05 mar-05 apr-05 may-05 jun-05 jul-05 aug-05 sep-05 oct-05 nov-05 dec-05 jan-06 feb-06 mar-06 apr-06 may-06 jun-06 jul-06 aug-06 sep-06 oct-06 nov-06 dec-06 jan-07 feb-07 mar-07 apr-07 may-07 jun-07 jul-07 aug-07 sep-07 oct-07 nov-07 dec-07 Source: Company out of Assogestioni

14 2007 Distribution Focus on managed assets also reflected by net inflows Leading position for net inflows into managed assets AZ Investimenti is not included since it s not among the 20 largest network Avg. -3, Data in /000 Sample of the 20 largest PF networks Source: Company out of Assoreti last available data (November 2007) 14 AZIMUT CONS. MEDIOLANUM MPS B.PERS. SIMGENIA CREDEM UBI B.SARA B.D.RETE UNIPOL BIPIELLE NET FINECO AXA B.LOMBARDA B.SAI FIN.& FUT SPAOLO INV. XELION B.EUROMOB. B.GENERALI ALLIANZ FIDEURAM

15 2007 Distribution Top productivity among large PFs networks Azimut Consulenza: 8.9x avg net inflows per PF AZ Investimenti: 10.9x 1000 AZ Investimenti is not included since it s not among the 20 largest network Avg AZIMUT CONS. MPS B.PERS UBI MEDIOLANUM CREDEM SIMGENIA B.SARA B.D.RETE UNIPOL BANCA S.p.A. BIPIELLE NET FINECO B.SAI B.LOMBARDA AXA FIN.& FUT. S.PAOLO INV. XELION ALLIANZ B.GENERALI FIDEURAM B.EUROMOB. Data in /000 Sample of the 20 largest PF networks Source: Company out of Assoreti last available data (November 2007)

16 2007 Distribution The development of the second network progressing AZ Investimenti joins the top 10 players by net inflows into managed assets AZIMUT CONS. MEDIOLANUM MPS B.PERS. SIMGENIA BSI ITALIA CR FIRENZE AZ INVESTIM. INVESTITORI CREDEM UBI ALPI B.SARA D.RETE BANCA NUOVA HYPO A.A-B. UNIPOL VENETO B. BPL NET BANCAPULIA GROUPAMA B.POP.VICENZA Data in /000 Top 20 PF networks for net inflows into managed assets Source: Company out of Assoreti last available data (November 2007)

17 2007 Highlights First rank in industry s worst year ever Industry lost 53bln (-8.9% of initial AuM) while Azimut collecting 1.4bln (+10.6%) Data in /000 Sample of the 20 largest asset managers Source: Company out of Assogestioni last available data (December 2007) Polaris is not included since it s a spin-off of another Italian AM 17 PIONEER AZIMUT JP MORGAN MEDIOLANUM KAIROS GENERALI CRED.EMIL. CR FIRENZE ANIMA DEUTSCHE B. BPM ALLIANZ M.PASCHI BNP PARIBAS UBI ARCA B.POPOLARE CAPITALIA FIDEURAM EURIZON

18 2007 Highlights Recruitment high quality but also good figures 2007 gross 2006 gross additions additions Azimut Consulenza AZ Investimenti Total PF at PF at Azimut Consulenza AZ Investimenti Total

19 2008 Analyst meeting 2007 Highlights 2007 Asset Management 2007 Distribution 2007 Preliminary financials 2008 Outlook Contacts 19

20 2007 Preliminary financials The growth continues Total revenues Net profit Net financial position 360 m m m +7% % % E E Net financial position at the end of 2007 is reflecting: 29m dividends paid in May m for 2007 accrued tax 38m for treasury shares +18% E Data in / million 20

21 Convertible: call option exercised The details The figures The reimbursement Jan 13 th Jan 18 th Feb 18 th 95,900 bonds issued Conversion due in July 2009, strike price 5.6 (40% higher than IPO price) Call option for the company provided that the share price remains in excess of 7.0 for at least 15 trading days exercisable after August 1 st 2006, with the possibility of paying the bond with treasury shares and/or cash (average price of the underlying Azimut shares of the last 5 trading days prior to the notification to bondholders) Board resolution Conversion period starts Conversion period ends Feb 25 th Payment date ( 7,843 corresponding to a bond price of ) 21

22 The new capital structure Improving the efficiency of the balance sheet and future EPS The reimbursement of the convertible avoids a 12% dilution in SHARE COUNT Current issued share capital 145.1m o/w treasury shares 3.8m Dilution for stock option in Apr m (for employees, strike price 4.75) Dilution for stock option in Jun m 0.4m (for FAs who joined in 2005) Other stock options vesting in Apr 2008 (for FAs in the Group at end of 2004) will be executed through treasury shares, so no dilution CAPITAL STRUCTURE 2008 Target net shareholders equity*: m Total debt: New cost of debt: 140m Eur03M + 100bps Improving the cost of capital while retaining significant capital flexibility *including the equity component of the convertible bond for around 40m 22

23 2008 Analyst meeting 2007 Highlights 2007 Asset Management 2007 Distribution 2007 Preliminary financials 2008 Outlook Contacts 23

24 2008 Outlook Constant development and innovation New products to be lanuched in 2008: New Quant-based flexible funds QMas: a quant-based product mainly investing in bonds QTrend: a quant-based product mainly investing in equities New flexible (cash) fund: Bot Plus: a fund, which will improve the management of clients liquidity Increase and change in investment strategies in Multimanager funds: Alfa Manager High Volatility (was Coco Bond): a fund of funds that invest in global equities with no geographical, sector or size restriction Alfa Manager Thematic (was Small Cap USA): a fund of funds that invests in the most actual macro-trends Asset Power: 40-70% bonds, 30-60% equity funds Asset Plus: % bonds, 0-30% equity funds 24

25 2008 Outlook Addition in the PM team New fund manager working with Fausto Artoni since Jan 1 st Continuity for the PM team Stefano MACH (40) BA in Economics Cheuvreux Italia Sim Responsible for Institutional clients Equity sales Intersim (SanPaolo Group) Equity Sales Studio Mach Equity Broker 25

26 2008 Outlook Net inflows and market performance % % +5% +13% +12% CAGR +20.6% 11, % +24% +5% +15% 14,897 13,281 8,221 7, % Performance Net inflows 26

27 2008 Outlook Consistency in collecting net inflows Mibtel 012M* Azimut inflows as % of AuM 012M* 2,5 2,0 1,5 1,0 0,5 0,0-0,5 7,001-1,0 27 dic-03 gen-04 feb-04 mar-04 apr-04 mag-04 giu-04 lug-04 ago-04 set-04 ott-04 nov-04 dic-04 gen-05 feb-05 mar-05 apr-05 mag-05 giu-05 lug-05 ago-05 set-05 ott-05 nov-05 dic-05 gen-06 feb-06 mar-06 apr-06 mag-06 giu-06 lug-06 ago-06 set-06 ott-06 nov-06 dic-06 gen-07 feb-07 mar-07 apr-07 mag-07 giu-07 lug-07 ago-07 set-07 ott-07 nov-07 dic-07 % *Moving average (12 months)

28 2008 Outlook Net inflows are linked to market trend, yet less volatile and more resilient Mibtel 012M* Difference between Mibtel 012M* and AZM inflows 012M* % 2,5 2,5 % 2,0 2,0 1,5 1,5 1,0 1,0 0,5 0,0 0,5-0,5 0,0-1,0 7,001-0,5-1,5-1, /12/03 30/01/04 27/02/04 31/03/04 30/04/04 31/05/04 30/06/04 30/07/04 31/08/04 30/09/04 29/10/04 30/11/04 31/12/04 31/01/05 28/02/05 31/03/05 29/04/05 31/05/05 30/06/05 29/07/05 31/08/05 30/09/05 31/10/05 30/11/05 30/12/05 31/01/06 28/02/06 31/03/06 28/04/06 31/05/06 30/06/06 31/07/06 31/08/06 29/09/06 31/10/06 30/11/06 29/12/06 31/01/07 28/02/07 30/03/07 30/04/07 31/05/07 29/06/07 31/07/07 31/08/07 28/09/07 31/10/07 30/11/07 31/12/07 *Moving average (12 months)

29 2008 Outlook Preparing for a difficult year, yet confident in our business model As usual, we are not in the position to give guidance on inflows (so please don t t ask for it ), although the evident correlation to equity markets and performance delivered to clients can suggest a trend In order to cope with turbulent and volatile markets and respond to clients needs, we constantly develop and market new products and initiatives We remind that the Group achieved positive inflows even in 2000, 2001 and 2002 despite negative clients returns and difficult market conditions As figures suggest, our inflows don t have the same beta as our stock vs. the Italian stock exchange index. We are well aware of it, and we bought back 3.8m shares in the period August December The programme is authorised until October 2008 for a maximum amount of 14m shares In brief, we are not magicians, we only (but ALWAYS) think strategically, long-term oriented, trust our business model backed up by about 20 years of history 29

30 2008 Outlook Preparing for a difficult year, yet confident in our business model WHAT WE WILL DO IN 2008: Continue to pursue growth, taking advantage of difficult market conditions to perform (if any) value-enhancing acquisitions. It s a mandatory need if we want (as we do) to keep our independence Focus even more on recruitment; the industry of promotori finanziari will suffer much more than in recent bullish environment, providing us good opportunities Try always to be ahead of competition in terms of product innovation Continue our growth outside of the domestic market Optimise our structure so to be ready for a new dimensional step WHAT WE WON T DO IN 2008: Panic if markets will strongly decline Change our investment style and our long term approach Lower the focus and commitment on strict cost control 30

31 CONTACTS Fabrizio Armone tel Gabriele Blei tel Disclaimer 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, third parties and the Company. 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 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. 31