Azimut Holding Spa Ord

Good afternoon. This is the Call School Conference Operator. Welcome and thank you for joining the Azimuth Group 9 Month 2025 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they make a signal and operator by pressing star and zero on the telephone. At this time, I would like to turn the conference over to Mr. Giorgio Medda, CEO of Paximot. Please, go ahead, sir.

Thank you, and good afternoon, everyone, and thank you for joining us today for the Agilent's nine-month 2025 results presentation. I'm Giorgio Medda, CEO of the group, and I'm very pleased to be here with Alessandro Zambotti, our CEO and Group CFO, and Alex Opera, Head of Investor Relations. This period marks another important step in our growth journey, reflecting both the strength of our business model and the consistency of our strategies across the market. This year, in 2025, we continue seeing a great execution and delivery in terms of objectives. translating to tangible results and exciting corporate development that we will certainly elaborate in detail later. So, moving on to slide three, please. So, let me start with the key highlights for the period. So, the first nine months of 2025 represent the best on record for Azimuth in terms of managed net inflows, reaching €13 billion, together with a strong 17% growth in recurring net profits. These results confirm the strength of our diversified business model and certainly the quality of our recurring revenue base. We also made very significant progress on the TMB transaction, which continues to advance and represent a transformational step for the group. Alessandro will discuss about this in more detail later, but now we certainly, I can say, we operate with greater clarity and visibility over the next regulatory steps related to the KINDI project, whose authorization is expected by the second quarter of 2026. Building on the strong commercial momentum to date, we are raising our core group net profit guidance for 2025. Today we are projecting the core group net profit to exceed 500 million euros in 2025, while we see 2026 net profit including the expected contribution from the TMB transaction to surpass 1 billion euros. As a result of the updated timeline regarding the TMV authorization, we have decided to anticipate selected key guidelines from our Elevate 2030 strategic plan, in particular relating to our global business. The new strategic plan will outline an even more ambitious growth trajectory, further cementing adverse leadership position among global independent players. But certainly, Amina will be able to elaborate on that in greater detail later in the presentation. So moving to slide four and turning to the highlights for the first nine months of the year, let me mention that total assets have reached €123 billion, marking a new record for the group. Navy inflows were equally strong at €15 billion, of which 43% came from our global operations. This demonstrates and shows the continued diversification of our growth and the relevance of our global platform, which once again outperformed all the players in the Italian asset management industry. Revenues in the nine months exceeded a billion euros, supported by a 9% increase in recurring revenues, confirming the quality and resilience of our business mix. EBIT stood at €471 million with recurring EBIT up 12% year-on-year and Group Net Profit reached €386 million representing a 17% growth compared to the same period last year. That is essentially driven by the steady expansion of our recurring profit base. And finally, let me stress what is the contribution from our global operations. reaching 60 million euros, corresponding to 43 million in the same period of 2024. So this is almost 50% growth versus the nine months last year. This consistent growth across regions confirms the effectiveness of our international strategy and the scalability of our global business model. And let me say as a general comment that this figures put us in a strong position to continue executing our long-term growth agenda while we continue creating value for our shareholders. So looking at the bridge between nine months 2024 and nine months 2025, I'm looking actually at slide number five, our good net profit reached 386 million euros compared with 429 million euros in the same period last year. And the difference here mainly reflects lower performance fees and capital gains below the operating profit line. while recurring profitability continues to grow very strongly. So recurring EBIT increased by 12% after cost, confirming the certain momentum of our core operations, while performance fees were lowered by about 19 million euros mainly due to insurance-related products. However, I would like to highlight a strong secure result and a solid cut into Q4. Strategic affiliates in GP stakes have contributed slightly less than last year, with dividends from our GP staking activities offset by lower net results from Sanctuary, Wealth and EZ-NGA. Under other items below EBITS, the comparison is significantly affected by non-recurring items, most notably the capital gain from the sale of our stake in Kennedy Lewis. And as such, it's important that throughout this call and for the broader analysis in general, I would rather focus solely on recurring growth which posted a 17% growth year on year as a result of our continued expansion across the globe. So on page 6 you will see how our total assets have evolved since the start of the year and the new reporting method. I won't go too much into the detail of this analysis as these are figures that have been already published and commented on press releases. But, you know, the thing I would like to mention here that is really remarkable is the fact that growth was essentially coming from organic flows, which have totaled almost €12 billion during the period and represent the best results on record in azimuth history. And while we don't have all the final numbers as of yet, let me anticipate that October is poised to be another month based on inflows across the board. Turning to page 7, again here I wouldn't go too much into the details of this, it will be also commented by Alessandro more in detail, but let me certainly mention slide 7, the breakdown, based on our four Integrated solutions is our core line of engagement with clients including Italy, Brazil, Egypt, Mexico, Taiwan and Turkey. This continues to be a powerhouse and commands superior margins that are driven by the vertical integrated business model and market leading positions that we have in these geographies. We have then the Global World Vision, which brings together the group's hubs in Monaco, Dubai, Singapore, Switzerland and the United States, that is becoming an increasingly important growth driver, serving high-net-worth and ultra-net-worth clients worldwide. And then we have the institutional and wholesale effort that is gaining traction and saw a very strong increase in profitability. Let me remind you that this segment brings together our global institutional initiatives across LATAM, Asia, DMA and certainly Italy. The strategic importance of this business is rising and will continue to do so. It's a source of innovation, distribution diversity and partnerships such as the contribution for NOVA. And also let me mention that strategic affiliates remain in a phase of growth and consolidation and we still have investments ramping up to expand the respective aggregating platforms of financial advisors in the US and Australia. And very important also to mention that as we keep growing, the group is able to maintain a very healthy recurring net profit margin at 0.3 basis points. Moving to slide number eight and zooming in on the performance by region, the results confirm the strength and the diversification of our global platform. Again, here I won't go into details too much as numbers and the notes speak for themselves, but let me tell you something that is very, very important to highlight here. Admin has evolved from a successful Italian player into a global platform. with very strong local roots and international breadth that spans 20 countries. Every region is contributing to growth, guided by unified culture, consistent governance, and a shared vision for the long-term value creation. We're going to talk about Elevate 2030 later, but these results set a very solid foundation for the ambitious growth targets that we are setting for ourselves in the years to come. So, let me now hand over to Alessandro for a more detailed commentary on the figures.

Thank you, Giorgio, and good afternoon to everybody. So, we can now move to slide 9. Total revenue in the first nine months, 2025, it go up to $1 billion, so marking an overall increase of 6%, $51 million year-to-year. This is the result of an increase in recurring fees, plus €58 million, thanks to the strong growth recorded in terms of total assets. And in particular, €31 million came from the Italian perimeter, with a strong contribution from all business lines, from mutual funds, alternative funds and pension funds, and also to NOVA. Some numbers. At the level of the alternative funds, we have a positive contribution of €12.5 million to the growth, mutual funds around €7 million, and discretionary advisory services and pension funds contributed for €9 million. With regard to our global operation, we have a contribution of about 27 million, thanks in this case as well to the Aste Group, mainly driven by US, Brazil, Singapore and Monaco. We should also factor in the change in perimeter due to the consolidation of Kennedy Capital and H&I Post, which occurred for 17 million. So moving to the performance fees were 4 million lower here on year, merely reflecting software results in the first half of the year, but partially offset by strong third quarter performance thanks to Brazil, Turkey and Monaco. Then at the level of the insurance revenue, we have a decrease by 80 million euro compared to the first nine months of last year. But however, in these cases where despite market volatility, We have a positive contribution from performance fees of about 27 million in these nine months, and in particular a strong contribution in the third quarter. We also grew our recurring revenue by about 8 million euros compared to last year, and these two components largely compensated for the lower performance contribution resulting in an overall variance of 16 million compared with last year. And to conclude, this first part of the revenues at the level of the other revenues were up to about $15 million compared to last year. And in general, we continue to see good consistency across all the areas that contribute to this line. But I would like to particularly highlight the contribution from our structural energy related to our Brazilian private infrastructure business. These fees are not recurring on a quarterly basis since they depend on deployment activity, but however, given the size and the ongoing growth of our infrastructure platform, we do expect them to recur on a quarterly basis, although with varying amount depending on timing and at the level of the single transaction. So then now moving to slide 10, we are going to focus on cost trend. Compared to revenue growth of about €61 million, costs increased by a total of about €33 million. Distribution costs increased by €24 million. This change is explained by the general increase in distribution costs, mainly within the Italian perimeter, directly correlated to the growth of our assets and revenues, and €8 million as well from the growth of the variable and incentive components. An increase in marketing costs, also directly connected to the TMB project operation. And finally, $4 million stemming from the increase in costs directly linked to the growth of our foreign business. The administrative costs were upped by about $11 million. And it is largely explained by the change in perimeter, meaning the line-by-line consolidation of Kennedy Capital and Dipos that contributed of about 14 million with offsetting effect from the effects. And we also would like to highlight in a way the cost discipline, especially concerning the Italian perimeter. And then DNA from the other end, we see that is substantially in line with the previous year. Moving to slide 11, as you can see, considering the revenue and cost, the dynamic just explained, we recorded a strong EBIT growth of 12% or 47 million euros per year. Equally important, we recorded a growth in the recurring net profit of about 17%, 44 million euros versus the first nine months of last year. Before moving to the next slide, let's highlight the significant contribution from the finance income item, which shows an increase of about 62 million, driven by 37 million from assets and portfolio performance, 19 million from the fair value option and equity participation, 9 million from interest and 8 million from city stakes and affiliates and then also we had a negative in this case negative impact of the ifrs for 11 million euro now moving to slide 12 we have the the classic picture of our net financial position which is a positive balance at the end of September of €765 million, substantially the same value of last year compared to June, we have an increase of around €120 million. That can be reconciled considering the pre-tax results of €198 million, the tax advance of $78 million, the M&A for $8.5 million, the proceeds from the sale of ranches that contributed to the cash for $38 million, and then a technical adjustment of $27 million from UCI units moved out from the net financial position. Moving to slide 13, let me share a key update on the TMB project. During the past month, we secured the antitrust approval to acquire the banking license, and I am delighted to announce today that we have signed yesterday a binding agreement with the bank discount. Our negotiation with FSI continues following the press release published today. We have updated the project finalization timeline to Q2 26. This timetable established is a clear and orderly process, providing azimuth and its shareholders with greater visibility on the final stages of the transaction. The schedule is fully aligned with the operational work already underway for the launch of TMB. And then I remind you once again, the extraordinary long-term value of this transaction. So again, the 1.2 billion potential total consideration plus the 2.4 billion revenue guarantee plus the 20% stake that we will maintain in T&D. Turning to slide 14, we have shared 25 targets. We confirm our net inflow target for the full year for 28, 31 billion euro. We have already achieved more than 15 billion of net influx at the end of September. We start trading figures for October. And then expected contribution of about 14 billion euro from the NSI integration could lead us to reach after the guidance. And then moving to slide 15. Given the strong results achieved in the first nine months, we are pleased to announce an update to our 25 core Group Net Profit targets. We now expect to exceed €500 million in 2025 compared to our previous lower end guidance of €400 million. Looking ahead to 2026, including the expected contribution from TMB, in this year, as a result of the updated timeline, we estimate Group Net Profit to amount above €1 billion. Finally, reflecting both the strength of our results and our solid capital position, the Board of Directors intends to propose and announce the dividend policy for the 2025 financial year. This will be above last year's €1.75 per share, which represented a 61% payout on recurring net profit. further demonstrating our commitment to rewarding shareholders through sustainable and growing research. We will share the final details with our school year 25 results presentation that will be happening at the beginning of March 26. Thank you for your time and your attention. I'll hand over to George again.