2004 First Half Results - Azimutjsp.azimut.it/export/sites/default/pdf/Pdf_presentazioni/...2004, September 14 2004 First Half Results 2 This document is provided to you solely for

2004 First Half Results 02004, September 14This document is provided to you solely for your information and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose

2004 First Half Results

2004, September 14


Overview

Highlights

Competitive position

Financial Review and Summary

Outlook


Differing from the market – 1H04

•All the competitors are affiliated to large groups

• 23,35% tied-up into a strong Shareholders’ Agreement among Promotori, Management and Employees

Shareholders

-2.77%Lost on avg. by the first 20 major competitors (Assoreti)

+11.28%Number of Promotori

-4,744 mln €(Assogestioni)

+625 mln €(relative only to mutual funds)

Growth in Fund Sector (net inflows)

SectorAZIMUT


• The major competitors have been changing their fund pricing

• Pricing Model never changed since 1993 consistent with our Active Management Style• Change of the pricing of management fees only after the issue, if any, of new rules by Bank Italy

Fund Pricing

• Total Equity underlying assets is 24%

• Total Equity underlying assets is 52%• Fund Performance vs Risk Free

Active Management Style

SectorAZIMUT

Differing from the market – 1H04


Relevant growth of net inflows of Net Managed Asset (+ 65.4% vs 1H03) and AuM (+11.3% vs 31.12.2003)

Steady monthly net inflows in uncertain markets

Launch of AZ LIFE (May 2004)

Growth of Promotori Finanziari (+11.3%)and clients (+4.7%)

Increase in revenues (+13.5%)

Highlights


(1) Relative to Net Managed Asset(2) Source: Assogestioni. Market share relative only to mutual funds(3) Commission income plus other income

Financial Highlights

1H’04 1H’03 % 2003AuM (Euro m) 7,790 6,389 21.9% 7,001Net Inflows (Euro m)

(1)597 361 65.4% 718

Market Share(2) 1.45% 1.22% 18.8% 1.31%

Revenues (3) (Euro m) 80.1 70.6 13.5% 155.7Operating Profit (Euro m) 22.3 20.1 10.7% 55.5

Operating Cash Flow (Euro m) 26.7 15.9 67.3% 53.2

Promotori finanziari 868 744 16.6% 780Clients 106K 99K 7.1% 101K

Continuing with the positive track record of operating results and growth despite the market uncertainty in 1H’04


Growth for all main figures

NET INFLOWS

361

1H’03

597

1H0’’4AUM

PROMOTORI

7,001

2003

7,790

1H’04

CUSTOMERS

101K 106K

2003 1H’04

780868

+ 11%

2003 1H’04

+ 5%

+ 65% + 11%

Data mln €

Growth generated by both existing and new clients


Net Inflows

Source: Company Data

Net Inflows Net InflowsNet Inflows1H04 2003ABSOLUTE %1H03

Azimut Funds 494 347 147 42.4 462

AZ Funds 131 21 110 523.8 310

Funds of funds 177 0 177 n.a. 196

Individual managed portfolios

-220 -60 -160 266.7 -293

Pension funds 0 0 0 n.a. 3

AZ Life 37 - 37 n.a. 0

Investing inGroup’s funds

-22 -53 -75 -141.5 40

Total net managed assets

597 361 236 65.4 718

Assets held in Custody 140 100 40 40.0 137

TOTAL NET INFLOWS 737 461 276 59.9 855

CHANGE VS 1H’03Data mln €

Strong growth of net inflows in managed assets (+65.4%)


Assets under management


AUM AUMAUM30/06/2004 31/12/2003ABSOLUTE %30/06/2003

Azimut Funds 6,861 6,188673 10.95,841

AZ Funds 756 604152 25.2297

Funds of funds 381 197184 93.40

Individual managed portfolios 670 867-197 -22.71,067

Pension funds 9 81 12.56

AZ Life 33 -33 n.a. 0

Investing inGroup’s funds -920 -863-57 6.6-822

Assets under management 7,790 7,001789 11.36,389

Assets held in custody 323 188135 71.8179

TOTAL ASSETS 8,113 7,189924 12.96,568

CHANGE VS 31/12/03

Data mln €

Significant growth of AUM (+11.3%), esp. for AZ Funds (+25.2%) vs 31.12.03


Funds Net Inflows: Azimut vs. the market

-2,50%

-2,00%

-1,50%

-1,00%

-0,50%

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

-3,00%

-2,50%

-2,00%

-1,50%

-1,00%

-0,50%

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

Fund IndustryAzimut

1H’01 2H’01 1H’02 2H’02 1H’03 2H’03 1H’04

Source:Assogestioni

Outperforming the sector in 1H04 (6 months Positive Azimut Inflows vs. 2 of the industry)


Funds Breakdown by Category

Source: Company / Assogestioni

Net Inflows (Euro m)

-3,127.3

-5,086.8

-1,527.3

4,470.2

18,7

-5,000.00

-3,000.00

-1,000.00

1,000.00

3,000.00

5,000.00

56

96

338

223

84

0

50

100

150

200

250

300

350

400

Italian Funds Industry

Azimut

Net Inflows 1H’04(€m)

5,992.00

15,468.00

10,691.90

-5,759.00

-1,240.40

-7,000.00

-2,000.00

3,000.00

8,000.00

13,000.00

18,000.00

214.37

-66.42

428.93

385.41

-1.61

-100

0

100

200

300

400

500

Net Inflows 2003(€m)

Italian Funds Industry

Azimut

Monetary

Bond

Balanced

Flexible

Equity

Balanced and Flexible funds confirm their value in the asset allocation


Funds Breakdown by Category

Source: Company / Assogestioni

6%

21%

46%

20%

7%

20%

3%

28%

27%22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

AuM 31.12.03 (%)

Italian Funds Industry Azimut

45%

19%

7%

22%

4%

27%

23% 26%

6%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

AuM 30.06.04 (%)

Italian Funds Industry Azimut

20%

Monetary

Bond

Balanced

Flexible

Equity

Equity underlying the funds is greater than 50%


Note: Data as of 30 June 2004. Past performances are not indicative of future returnsSource: Money Mate and Azimut(1) Includes Formula 1 Anno

Funds performance

Number of Azimut Funds in Top Quartiles as % of Total

1H’04 1 Year 5 Years

Equity & Balanced (1) 68.75% 63.16% 84.21%

Bonds 42.86% 50.00% 70.00%

1H’04 1 Year 5 Years

Equity & Balanced (1) 43.75% 42.11% 63.16%

% 1

stan

d 2

nd

qu

art

ile

% 1

stq

uart

ile

Mantaining the performance



In May Azimut Promotori began the placement ofAZ LIFE first Unit Linked single premium: Cassiopea

AZ FUND Management started two new funds dedicatedto Cassiopea and managed with a long term horizon- AZ FUND Long Term Bond- AZ FUND Long Term Equity

Margin expansion as existing and new customers switch to life insurance

Launch of AZ LIFE


In less than two months Cassiopea gathered a portfolioof 37 Mln € deriving both from new investments (16%)and switches from other products (84%)

86% of Cassiopea assets are invested in longand medium term profiles

AZ LIFE: delivering results

In August AZ LIFE technical reserves were 57 mln €



Top level ranking amongst networks

-

2.000,00

4.000,00

6.000,00

8.000,00

10.000,00

12.000,00

14.000,00

16.000,00

-200,00 -100,00 0 100,00 200,00 300,00 400,00 500,00 600,00 700,00 800,00

CreditSuisse

Finanza & Futuro

BNL Investimenti

Banca 121

Fideuram

SPInvest

Rasbank

Fineco

Generali

Euromobiliare

Bipielle Network

Credem

Mediolanum

BPUMediosim

XelionSella

Axa

1H04 net inflows/ Promotori (€ 000)

-

2.000,00

4.000,00

6.000,00

8.000,00

10.000,00

12.000,00

14.000,00

16.000,00

-200,00 -100,00 0 100,00 200,00 300,00 400,00 500,00 600,00 700,00 800,00

CreditSuisse

Finanza & Futuro

BNL Investimenti

Banca 121

Fideuram

SPInvest

Rasbank

Fineco

Generali

Euromobiliare

Bipielle Network

Credem

Mediolanum

BPUMediosim

XelionSella

Axa

Promotori (€ 000)

AuM/ Promotori(€ 000) as at 30.06.04AuM/ Promotori(€ 000) as at 30.06.04

Source: Company derived from Assoreti Data – sample of the first 19 Network by AUM

Improving the productivity of the Promotori


Mln di €

11,53

9,09

7,66

6,52

5,69

3,27

2,36 2,29 2,232,00 1,97

1,520,93

0,31

14,50

4,69 4,583,94 3,803,85

-

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

valore medio pro capite 4,66 mln €

Average AuM of the sample per PF 4.66 mln € as at 30.06.04

Network effectiveness: Aum per pf

Confirming the positioning vs. competitors

CR

ED

IT S

UIS

SE

(ITA

LY

)

B.

FID

EU

RA

M

AZ

IMU

T

B.

EU

RO

MO

B.

S. P

AO

LO

IN

V.

FIN

. &

FU

TU

RO

B.

GEN

ER

ALI

BN

L I

NV

ES

T

MED

IOLA

NU

M

RA

SB

AN

K

XELIO

N B

.

SELLA

SIM

MED

IOS

IMB

. D

ELLA

RETE

BP

L N

ETW

OR

K

AX

A S

IM

B.

FIN

EC

O

BP

U S

IM

CR

ED

EM

B.

12

1

SIM

GEN

IA S

IM

Source: Company derived from Assoreti Data – sample of the first 20 Network by AUM


466,07443,46

329,17 318,25

260,08

87,56

45,53 42,81 37,68 33,72

118,36 111,48151,06

189,85195,91

710,39

-18,56 -69,75 -116,45 -124,30

-140,00

-40,00

60,00

160,00

260,00

360,00

460,00

560,00

660,00

760,00Network effectiveness: net inflows per Pf

Outstanding Net Inflows per Promotore in the 1H’04

Euro 000

CR

ED

IT S

UIS

SE

(ITA

LY

)

BN

L I

NV

ES

T

AZ

IMU

T

MED

IOS

IMB

. D

ELLA

RETE

BP

U S

IM

XELIO

N B

.

SELLA

SIM

AX

A S

IM

CR

ED

EM

MED

IOLA

NU

M

BP

L N

ETW

OR

K

B.

GEN

ER

ALI

B.

EU

RO

MO

B.

B.

FIN

EC

O

B.

FID

EU

RA

M

S. P

AO

LO

IN

V.

RA

SB

AN

K

SIM

GEN

IA S

IM

Source: Company derived from Assoreti Data sample of the first 20 Network by AUM

B.

12

1

FIN

. &

FU

T.


Consolidated Reclassified Income Statement

Growth of operating profit (+10.7%) vs 1H03

Euro/000 30/06/2004 30/06/2003 31/12/2003

Entry Commission Income 3.360 2.654 6.437Fixed management fees 54.454 42.232 90.304Variable management fees 18.457 22.746 49.886Other income 3.860 2.963 7.068Total Revenues 80.131 70.595 153.695

Distribution Costs -41.123 -33.196 -66.666Commissions on No load products -4.166 -3.360 -6.800Personnel and SG&A -12.039 -13.402 -23.541Depreciation, amortisation/provisions -508 -496 -1.194Operating Costs -57.836 -50.454 -98.201

Operating Profit 22.295 20.141 55.494


Management Fees Trend

Growth in fixed mngt fees (+14%) as a result of increased AUM compensates the decline of variable fees due to underperforming markets in 2Q04

9692 91

42

54

99

55

1999

2000

2001

2002

2003

1H '0

3

1H '0

4

Fixed Management Fees(Euro m)

Variable Management Fees(Euro m)

96

24 25

50

2318

53

1999

2000

2001

2002

2003

1H '0

3

1H '0

4

Average per year:Euro 50m

Average per year:Euro 87m


High Operating Leverage / Lean Fixed Cost Base

Improving the operating profit excluded variable mngt fees

(1) Entry Fees + Other Income

Revenue Trend (Euro m) Lean Costs (Euro m)

23,513,4 12,0

66,7

33,2 41,1

8,0

3,8

4,7

2003 1H'03 1H'04

90,3

42,254,5

13,5

5,7

49,9

22,7

18,4

2003 1H'03 1H'04

70.6

153.7

7,2

Other(1)Fixed Management Fees Variable Management Fees

50.4

98.2

Distribution CostsPersonnel and G&A No Load Amortisation

80.157.8

61,747,9


Consolidated Reclassified Income Statement

Net Profit ex. Non recurrent costs …

30/06/2004 30/06/2003 31/12/2003Operating Profit 22.295 20.141 55.494Interest income 243 2.170 3.047Goodwill/Trade Mark Amortization -18.950 -18.950 -37.900Non recurring costs -1.229 -1.515 -7.202Interest expenses -10.612 -13.486 -25.883

Profit (loss) before tax -8.253 -11.640 -12.444

Income tax -962 -4.557 -9.770

Profit (loss) after tax -9.215 -16.197 -22.214

Profit (loss) after tax -9.215 -16.197 -22.214Non recurrent costs 1.229 1.515 7.202Goodwill/Trade Mark Amortization 18.950 18.950 37.900Extraord. Gain from financial operations -1.128 -1.128

Effect on taxation: -406 5.496 5.496Non recurrent costs -406 0 0Extraord. Gain from financial operations 443 443Write-downs of advance taxation 5.053 5.053Adjusted Net Profit 10.558 8.636 27.256


Adjusted gross and net profit

Adjusted net equity

30/06/2004 30/06/2003 31/12/2003Adjusted Pre-Tax Profit 11.926 7.697 31,530Taxation -1.368 939 -4.274Adjusted Net Profit 10.558 8.636 27.256

Share capital 22.000 22.000 22.000Share premium 28.500 28.500 28.500Adjusted profit (previous year) 37.472 10.216 10.216Adjusted Net Profit 10.558 8.636 27.256Total 98.530 69.352 87.972


30.06.04 30.06.03 31.12.03

Net income (loss) (9.215) (16.197) (22.214)Amortisation, Depreciation and other provisions 20.026 20.457 43.144Interest expense 10.617 13.490 25.899No load commissions expense 4.166 3.360 6.788Vat on royalties 600 1.080 2.160 Tax provisions (tax asset uses) 962 4.557 9.391Net change in credit and debt and other funds (447) (10.886) (11.940)Cash flow from operating activities 26.709 15.861 53.228

Increase/(decrease) in other asset (5.654) (315) (811)Increase in investment subsidiaries (600) (750) (4.250)Increase/(decrease) in securities portfolio (2.250) 22.615 14.209Cash flow from investment activities (8.504) 21.550 9.148

Reserve Account 0 2.447 12.228Senior Loan repayment (34.885) (5.615) 4.384Interest on Senior Loan (1.235) (2.603) (4.432)Mezzanine Loan repayment (4.000) (15.000) (52.200)Interest on Mezzanine Loan (112) (4.560) (7.036)Bipop current account (433) 0 0Cash flow from financial activities (40.664) (25.330) (47.056)

TOTAL CASH FLOW GENERATED (ABSORBED) (22.459) 12.081 15.320

Cash at bank and on hand at beginning of period 34.270 18.950 18.950Cash at bank and on hand at the end of period 11.811 31.031 34.270

Consolidated cash flow statement

91 MLN DEBT REPAYMENT SINCE BUY OUT PLUS INTEREST ON SENIOR AND MEZZANINE DEBT


Net consolidated financial position

Due to banks: (226.838) (100.000)

Senior Loan (65.038) (100.000)

Vendor Loan (161.800) 0

Amounts due from financial institutions (101.401) 0

Shareholder Loan (100.368) 0

Mezzanine Loan (1.033) 0

Bond debt (25.000)

Convertible Bond debt (95.900)

Total borrowings (353.239) (195.900)

Cash and securities 49.274 33.811

Net Funding (303.965) (162.089)

Pre-listing balances Post-listing balances

Data as at 7th July 2004

debt


Net shareholders’ equity pre- and post-listingexcl. result for the period

Pre-listing Post-listingShare capital 22,000 31,744Share premium reserve 28,500 163,866Legal reserve 719 719Other reserves (719) (719)Net losses carried forward (45,908) (45,908)TOTAL 4,592 149,702

Data as at 7th July 2004


Outlook

… two months after the IPO (one of

those was holidays) we confirm

our IPO growth strategy…


Growth Potential from Existing and New Operations

Organic Growth

• Recruitment of new promotori, leveraging on proven capability to attract top-class professionals

• Increase in productivity of existing promotori• Widening product range

Development of Third Party Distribution

• Access new customer base• Banks working in partnership with Azimut can widen product range and

rely on a high quality management, assistance and commercial support from Azimut

• Target Institutional and Private clients through direct channel• Azimut perceived independence and high quality of money management as

key selling points• Focus on client requirements and relationship through dedicated resources

• Growth from (i) attractive life insurance sector prospects in Italy and (ii) limited exposure to insurance of Azimut vs. peers (only 1.6% of AUM), allowing for cross-selling

• Margin expansion due to life insurance wrap• Tax benefit from Ireland–based operations/Luxembourg based funds

• Limited contribution to revenue generation, but key component tocomplement product range

• Limited investments required

Development of Other Channels

Life Insurance

Banking Products


… and keep on growing (update August 2004)

Net Inflows Net Inflows Total AuM % Changein August Yto end of August Yto end of August since BoY

Azimut Funds (*) 59 603 6,894 11.3%

Funds of funds 3 187 387 96.9%

AZ Funds (*) 11 190 806 33.5%

Discretionary Accounts -4 -241 640 -26.2%

AZ Life (Unit Linked) 8 58 57 100.0%

Total net managed assets

77 797 8,784 11.7%

Total net managed assets net of duplication

64 755 7,856 12.2%

Assets held in custody 7 156 337 78.8%

TOTAL NET INFLOWS& AuM

71 911 8,192 14.0%

Data in mln EURO

Not slowing down during the holidays period


Variable Management Fees

The growth of AUM affects the Fixed Management Fees,

while the market conditions affect the Variable Management Fees

1H-2003 22,8 mln Euro 2003 49,9 mln Euro

1H-2004 18,4 mln Euro 2004 ??


Backup


1H04 net inflows of Companies that distribute through Promotori Finanzari.

The sample is formed by the 20 largest companies by Aum.

The data include Mutual Fund, Individual Managed Portfolios, Life insurance and Pension Funds distributed through Promotori Finanzari.

Assoreti, the source of data, is the association of network-driven Industry.

Azimut Network effectiveness: net inflows

Source: Company derived from Assoreti Data

Data in Euro/000B. Mediolanum 769,543.41 4,053.5 189.85

Xelion B. 726,314.97 2,206.5 329.17

Azimut 585,359.81 824 710.39

B. Generali 288,094.45 2,434 118.36

Mediosim B. della Rete 196,216.52 421 466.07

Bpu Sim 189,799.8 428 443.46

B. Fideuram 150,939.15 3,315.5 45.52

B. Fineco 140,924.57 1,609.5 87.56

Sella Sim 131,119 412 318.25

Credem 124,500.99 635.5 195.91

Rasbank 123,821.1 3,286 37.68

Axa Sim 102,599.84 394.5 260.08

Bipielle Network 101,211.56 670 151.06

Simgenia Sim 90,342.41 2,679 33.72

B. Euromobiliare 52,059.42 467 111.48

Sanpaolo Invest Sim 47,458.5 1,108.5 42.81

Banca 121 -18,259.23 984 -18.56

Credit Suisse (Italy) -39,589.89 318.5 -124.30

Finanza & Futuro -85,125.72 1,220.5 -69.75

Bnl Investimenti -105,150.34 903 -116.45

Net inflowsManaged assets

1H04

Avg. Number of PF(dec. 03-jun 04)

Net inflowsManaged assets

per PF


Data in Euro/000

Managed assets includesMutual Funds,Individual Managed Portfolios,Life insuranceand Pension Fundsdistributed throughPromotori Finanzari

Azimut Network effectiveness: AuM

Source: Company derived from Assoreti Data

Credit Suisse (Italy) 4,617,956.26 318.5 14,499.08

B. Fideuram 38,226,852.27 3,315.5 11,529.74

Azimut 7,493,725.73 824.0 9,094.33

B. Euromobiliare 3,577,659.10 467.0 7,660.94

Sanpaolo Invest Sim 7,234,188.31 1,108.5 6,526.11

Finanza & Futuro 6,938,734.47 1,220.5 5,685.16

B. Generali 11,415,826.50 2,434.0 4,690.15

Bnl Investimenti 4,136,731.73 903.0 4,581.10

B. Mediolanum 15,972,914.28 4,053.5 3,940.52

Rasbank 12,654,014.00 3,286.0 3,850.89

Xelion B. 8,402,293.76 2,206.5 3,807.97

Sella Sim 1,350,584.00 412.0 3,278.12

Mediosim B. della Rete 997,147.31 421.0 2,368.52

Bipielle Network 1,539,124.69 670.0 2,297.20

Axa Sim 881,766.85 394.5 2,235.15

B. Fineco 3,230,376.33 1,609.5 2,007.07

Bpu Sim 846,563.17 428.0 1,977,95

Credem 961,261.8 635.5 1,512.61

Banca 121 922,612.56 984.0 937.61

Simgenia Sim 838,520.24 2,679.0 313.0

132,238,853.36 28,370.5 4,661.14

N. of PF(avg Jan-Jun 04) AuM per PFAuM


Source: Company / Assogestioni data as at the end of June

Higher gearing towards Equity Markets

Mutual Funds Breakdownby Underlying Assets: Sector

GovernmentBonds56%

Foreign bonds10%

Other7%

Italianequities

5%

Foreignequities

19%Italian bonds3%

Total Equity

24%

Mutual Funds Breakdownby Underlying Assets: Azimut

Foreign bonds0%

Governmentbonds 43%

Other5%

Italianequities

13%

Foreignequities

39%

Italian bonds0%

TotalEquity

52%


Stock performance

Source: Money Mate


Fabrizio ArmoneInvestor relations manager tel. +39.02.2836.5853

Lidia LommiMarketing and PR manager tel. +39.02.2836.5244

[email protected]

Azimut Holding SpAPiazza Durante 11 – 20123 Milano

Contacts


DisclaimerThis 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 their respective members, directors, officers or employees or any other person. None of 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.

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2004 First Half Results - Azimutjsp.azimut.it/export/sites/default/pdf/Pdf_presentazioni/...2004, September 14 2004 First Half Results 2 This document is provided to you solely for