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.

Thank you, Alessandro, and I would move to slide 16. So, following the completion of the ordinary supervisory review by the Banco Vitali on part of our Italian business, we can say that we have full clarity and greater visibility on the regulatory timelines ahead. This gives us a very solid foundation to move forward with confidence towards the launch of TMB that is a key milestone in adult evolution. The Group Strategic Plan Elevate 2030, which will include targets for all business lines and both the Italian and global platforms, will be presented in full as previously announced to the market following the authorization of the TMB transaction. However, global expansion continues to be a cornerstone of Azimut's strategy and we continue building on our presence in 20 markets. We are very determined to continue strengthening our leadership among the world's leading independent players. That is why, in the meantime, we have decided to share a few key guidelines focused on our global business that is a part not impacted by the Supervisory Review. This plan emphasizes growth, diversification and sustainable value creation for shareholders. With Elevate 2030 we are certainly defining an even more ambitious growth trajectory, one that will showcase the full potential of our diversified global platform and reinforce Agnew's position as a truly global success story. But let us now take a closer look at what lies ahead and I will move to slide 17. First of all, to help everyone to better understand the potential of our global operations, we started with a bottom-up analysis of the expected contribution in terms of net inflows from each region. This has historically been an area where the market underestimated our potential and we believe this figure better illustrates the scalability of our platform. What we are showing here are the expected yearly net inflows from our global operations only and we are excluding Italy. These targets are indeed very ambitious but we see them as incredibly realistic. They are consistent with our historical growth trajectory, which also reflects a clear step up as we continue to scale, broaden our investment solution base, and bring innovation to our markets. And indeed, we believe a strong potential for ASMO to replicate the success that we have achieved in Italy. We expect total net inflows from our global platform between 5 and 8 billion euros per year, with the Americas region remaining a major growth driver, contributing 2 to 3 billion euros annually, supported by the integration of an aside in the United States which will add approximately 16 billion dollars or 14 billion euros upon closing of the transaction at the end of the year. Our strategic affiliate led by Sanction Revolts in the US is D&J in Australia, also very well positioned now to capture powerful structural trends, and the shift of top financial advisors away from bank-owned networks toward independent platforms continues to accelerate, and the ongoing intergenerational wealth transfer in both markets is expanding every day to address more client base for advisory-driven models like ours. For the strategic affiliates, we are expecting to add between €1.5 and €2.5 billion of annual inflows, confirming the strength of our partnership model in high potential markets. The EMA in Asia-Pacific regions will also contribute steadily, driven by our ongoing expansion in markets such as Egypt, Taiwan and Singapore. Overall, this figure illustrates the depth and balance of our global business. In general, what I would like to say here is that the international component of Acrimut is becoming an increasingly powerful engine of growth and value creation under the new strategic plan. So moving to slide 18, here we are really converting the inflows into the overall asset base at the end of the period. We are now projecting our global average total assets to grow from around €54 billion to between €95 and €110 billion by 2030. This is a very exciting plan, we are essentially showing here our ambition to double our asset base, but certainly it demonstrates the strength and maturity of our global platform. Achieving these goals we require certainly focus and determination, but I believe we have all the right elements in place. We have now a robust and diversified product offering across public and private markets. We have the ability to tailor solutions to the specific needs of each client and we have a unique entrepreneurial model and mindset that will allow us to move quickly and seize opportunities. This combination gives Azimut a unique and clear competitive advantage and positions us among the very few independent global players able to grow at scale while preserving quality and agility. And now moving to slide 19, I want to really focus on margin. This is a very important element to help the market better understand what lies ahead and be true and inspired of our global business. Here we show where our current net profit margins stand today. by region and where we expect them to evolve by 2030. We have provided a wide enough range to capture different market conditions, but also we want what is the significant operating leverage and the economies of scale that our global platform can deliver as it continues to grow. The Americas are expected to see margins rising from around 27 basis points today to between 25 and 35 basis points by 2030, and this will be our largest region by total assets, supported by the NSI integration and the planned launch of active ETFs which will bring Agnew's global product capabilities to the world's largest market. EMEA remains our most profitable region, with margins expanding towards 50 to 60 basis points, while we see the potential for the Asia-Pacific region to gradually improve its contribution as the region scales and matures. Looking at these figures on a consolidated level, we expect the global business, including Italy and the strategic affiliates, to reach a net profit margin between 30 and 40 basis points by 2030, corresponding to an annual profit of approximately 180 to 280 million euros. This compares with a margin of around 35 basis points and a net profit of 70 million euros generated in the first nine months of this year. Also I think it's important here to put into perspective that since 2019 our government profit has grown at a compound annual growth rate well above 35% and this gives us a very strong base and clear visibility on the profitability path that we are building towards 2030. I would move to slide 19, 20 and 21 and on the next three slides you see the same breakdown but this time by business line rather than geography. And that should help everyone to cross-check our assumptions and better understand the contribution of each vertical to the overall growth plan. I will not spend too much time here, but it's important to highlight the strength and balance across our global platform. And let me tell you that the Elevate 2030 plan will bring greater transparency to the market by showing our strategic and financial objectives through these four verticals that we have already introduced this year with the new reporting structure. This structure certainly enhances clarity, ensures consistency in how we represent value creation and makes it easier to appreciate the growth and profitability potential for each business line. And, you know, obviously, four verticals provide and diversify the complementary growth platform that, you know, is underpinning our market leadership, operational integration, and long-term strategic partnerships. I would move now to slide 23 where there is essentially highlighted what is a key pillar for Elevate 2030 that is strategic capital management. This is a framework designed to enhance our valuation, to strengthen financial flexibility and deliver consistent and attractive returns to our shareholders. Our focus is on improving transparency and disclosure to out-close the valuation gap that we continue to believe the market is still applying to the stock and we're not really truly appreciating the potential of Altimut. We are also proactively managing regulatory risk by simplifying our structure and ensuring greater operational clarity across the editions. and we furthermore plan to unlock value from our global operations through a series of operations that could potentially include targeted demergers, dual listings and or strategic partnerships. We are also very pleased today to announce a new share buyback program with a commitment to cancel up to 500 million euros of repurchased shares over the next 18 to 24 months equivalent to around 10% of our share capital. This initiative aims to maximize shareholder remuneration and reflects the constructive feedback that we have received from our investors over the last few months. And it's a clear signal of our confidence in the strength of the group, the resilience of our cash generation and our commitment to delivering tangible value to shareholders. And beyond this, we remain committed to maintaining a debt-free position given the strong cash regulation of our business. However, we will preserve the optionality for future value-affiliated M&A opportunities to be financed via debt. And as Alessandro has already highlighted, we will propose a new enhanced ordinary dividend for the full year 2025 versus the prior year and certainly we will give you more insights with our full year results in March 2026 when it comes to a broader and more comprehensive digital policy as part of the elevated 2030 plan. I think we can already anticipate that when it comes to shoulder remuneration, one key principle will be that any policy that will be announced to the market will be aligned with cash flow generation to ensure an attractive and sustainable payout over time. So, let me move to the last slide. We need to wrap up everything that we discussed and shared with you today. So, first of all, we are upgrading our 2025 Core Net Profit target to about €500 million and we project now net income to exceed €1 billion in 2026. This reflects the storage momentum we have built throughout the year and continued strength of our recurring earnings. Second, we have made meaningful progress on the TMB transactions, getting enough clarity on the timeline for the next steps. This gives us a clear regulatory and strategic pathway to move forward. Third, with Elevate 2030, we are releasing ambitious yet achievable targets for our global operations. We project between 5 and 8 billion euros of annual net inflows over the next five years and total assets between 95 and 110 billion euros by 2030 with an expected net profit margin in the region of 30 to 40,000. And last point, our strategic capital management remains a key driver of our creation. 500 million euros shared by VAT program with full cancellation of repurchased shares and then a new dividend policy to be presented in 2026 after the completion of the TMB transaction, but as we mentioned, already we are providing an enough dividend payout for 2025, you know, obviously applying on the payment in 2026. Together, we believe these initiatives position adults for a new chapter of profitable, disciplined, and sustainable growth. With this, we are done, and we certainly open the floor to any questions.

SQV, this is the car school conference operator. We are now booking the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touch-tone telephone. To remove yourself from the question queue, please press star and 2. Please pick up the receiver when asking questions. Anyone who has a question may press star and 1 at this time. The first question is from Gianluca Ferrari of Mediobanca. Please go ahead, sir.

Thank you very much. Three for me, please. The first one is on the foreign business. I think what you are telling us today, Giorgio, is that the foreign operations are closing this year very close to the cost of capital you put in that development outside Italy. And given the trajectory you are disclosing today, is it fair to assume that by 2027 the IRR of these will reach 20% or something very close to that level? The second is on NOVA. Last week Amundi and then Unicredit, they have been pretty vocal in what is the relationship among them. I will now ask you the level of AUM you are expecting from Unicredit given the acceleration of the divorce, let's say, from Amundi. But I'm more curious to understand what is the level of margins after 2028? So after Unicredit will have exercised the call option. Is it fair to assume that your 20% in NOVA will represent something like 15-20 basis points on the AUM that Unicredit will have transferred at that point. The third question is, I don't know if I can ask this question, but are you eventually considering a dual listing of Azimuth even in other stock exchange like in the US, for example? And sorry, if I made the last one, So on the press release, after the Bank of Italy inspection, you have some, let's say, adjustments to the business to be compliant with what Bank of Italy is asking to you. Are the costs related to that material or we are talking about a few million euros? Thank you.

Gianluca, I'll pick your first and second question. So, regarding the foreign business or the global business as we call it in Adelaide, you know, you look at this year and you look at what we have delivered for the first nine months, I think it would be fair to assume that we will generate a return on invested capital between 13% to 15%. that I think is above our cost of capital. So I think we are already proving value creation. And indeed, when you look at the earnings trajectory over the next couple of years, certainly I see as very realistic a return on invested capital in the region of 20% within this timeframe. When it comes to Nova, as you know, and I think it's important for me to stress it again, we will never, never disclose any confidential information regarding the activity of clients with our platform. We have never done that with any clients. We will never do it. with NOVA, but let me guide you towards some generic principles that govern our partnership with NOVA. Certainly, the moment that Unicredit will exercise the call option to buy 80% of NOVA, that should not have a material impact on earnings contribution. Already today, we have an agreement under which we are working like Unicredit was already an 80% shareholder. And when it comes to basis points, I think we've guided in the past a range between 40 to 50 basis points. I would assume that we are ballpark again in that we are level in the second stage of this partnership if we get to the second stage, so after the exercise of the call option. You were also asking about dual listing. Yes, indeed, the U.S. Stock Exchange remains a very valuable option for us, certainly we see today. a very significant valuation differential for players in our industry being listed there as opposed to being listed in European markets, but we will retain obviously full optionality in deciding which exchange will be eventually decided for our alternative listing.

So in general, as you said, and as you probably read on the press, the report is focused on increasing our strength in terms of oversight, strategic planning, so nothing that causes us an impact on the business and therefore on the P&L of the group. therefore it's just a matter you know to focus on paperwork and action fix the what the military they found missing but as you said also in during the question is that fuel is a few euros to to to spend to to fix quickly uh the gap and then to be looking forward to focusing on our business thank you thank you both

The next question is from Giovanni Razzoli of Deutsche Bank. Please go ahead.

Good afternoon to everybody. Two set of questions. The first one is on the target for the international operation contribution. We are targeting 5 to 8 billion euros of inflows. Half of that are from the States. But if I look at the nine-month run rate, you are already close to You know, 4 billion euro, 4.5 with U.S. at 2.5. So I was wondering if we can consider the low end of the range, this 5.8 billion contribution of influence from the international operation as a quite conservative target. The second question relates to the announcement of the share buyback. I was wondering how shall we look at the 10% share buyback that you have announced in the context of the 3% treasury shares that you have already owned. So shall we assume that the 10% is on top of the 3% or you will proceed with the cancellation of the 3% and then on top of that in two years' time you will buy another 10% with the cancellation. And then, as you have mentioned, you know, medium, long-term targets, given that your net financial position is very strong, actually you are cash positive with a capital-like business, shall we assume that apart from these €500 million share buyback, if I move forward, I don't know, three, four years down the road, the share buyback becomes a kind of recurring component of your distribution strategy. Let's say 500 million euros of share buyback in two years' time as a kind, as I said, of recurring contribution of your remuneration policy. Thank you.

Yes, Giovanni. So, let me start with the question regarding the 5.3 billion euros of expected menu money from our non-Italian operations. Indeed, we are providing you a target. This is a target applied for a five-year period. Certainly, we always work with the ambition of meeting the targets that we set for ourselves. Indeed, I would say that the bottom end of that range assumes a deterioration in market conditions and things changing as opposed to what we are expecting. But, you know, the range is a range, it's a long period of time, and I would certainly, with everyone in ASIMO, to make sure that our real objective is to be that range. When it comes to the share-by-deck, I don't know which figure you are looking at, but I would say that probably today Treasury shares amount to 1% of our outstanding capital. and you should assume that the 10% is on top of this 1%. And for the question regarding what will happen in the next three to four years, I was certainly thinking what we have announced today and time will tell. I think we are making a very strong statement in terms of committing to ensure that our shoulder remuneration policy is inclusive and makes all our shareholders to benefit from the value that we create every day in our business around the world. What is important to say here is that after the TMB transaction we'll be able to provide a more comprehensive shoulder remuneration policy including also the ordinary payout policy when it comes to dividends.

Thank you.

The next question is from Hubert Yam of Bank of America. Please go ahead, sir.

In the global business, just wondering how much of that would you expect it to be coming from organic in your plans and how much is it M&A? Do you need M&A to kind of get there or are you confident that organic you can still achieve your targets? Second question is on the share buyback, the $500 million. I'm just wondering in terms of timing when it gets started. Do you need the approval for the new bank first before you can start the share buyback, or can it come before that? And lastly, any questions on the new bank? Any update in terms of expected profits you expect from this, both in 26 and maybe beyond that? Thank you.

I'll reply to your first two questions. I'm not sure I got right your third one, but let me start with the first one regarding organic growth. From our global operations, the guidance we provided you should assume is mostly organic. By the way, when you look at what we have done this year, again, the figure that we mentioned earlier is essentially most organic, so you should really consider any M&A contributing to this level. When it comes to the share buyback, as a matter of fact, the share buyback is live in the market because we have already approved the share buyback with our AGM in the first quarter this year. What the AGM will approve next year will be the renewal of the plan and the cancellation of the repurchase shares. But the Sherbet Bank is, as a matter of fact, live right now, live in the market. And as far as your first question is concerned, we missed it.

Yeah, sorry about that. Yeah, so the answers to the first two are very clear. The third question, yeah, sorry, on the new bank, just wondering how much in terms of profit contribution we can expect from it in terms of delivering profits in 2026. I know that's just the first year and also like beyond any update in terms of guidance around that.

Nowadays it's running around with the projection at the end of the year it's around €60 million for 2025. Therefore I would say we are going to be the 20% of this range, less fuel cost that obviously has to be incurred through the fact that it has no self-standing banks. Therefore I would say that we are in this range. Okay, thank you.

The next question is from Alberto Villa of Intermont to see. Please go ahead.

Good afternoon. Thanks for taking my questions. A few left. One is on the acquisition side. I read that your chairman also indicated that there might be opportunities for future acquisitions, especially in LATAM. So I was wondering if you can give us an idea what is, let's say, of interest for the group in terms of completing the the setup of the global operations you have and broadly speaking what is the leverage that you would consider as a good setup for the group if you find an interesting opportunity also in organic in the framework of the also the capital remuneration, shareholder remuneration that you have in mind. Thank you.

Your first question, referring to the interview of our chairman a couple of weeks ago in Italy. Indeed, we will continue to explore and to seek acquisition opportunities on a bolt-on basis and acquisitions that will never be material in terms of cash outlay and certainly will carry a strong strategic in terms of adding and complementing our existing businesses around the world. I think during the interview it was mentioned our interest in Latin America. Let me tell you that there are a few situations we are looking at in Brazil, but that would be negligible in terms of cash investment for the firm, but certainly we strengthen our distribution business in the country. And when it comes to the leverage, we often say that we certainly recognize the merits of having an optimal capital structure policy and in general we would guide the market when it comes to what we would envisage in the case of a transformative of material M&A transaction in terms of leverage probably in the situation where we have an adept to EBIT in the region of 1 to 1.5 times ratio. Okay, thank you.

You're welcome.

The next question is from Elena Perini of Intesa San Paolo. Please go ahead, Madame.

Yes, good afternoon and thank you for taking my questions.

I have some left. The first one is about your new net profit targets for 2025 and 2026. So basically you move the one the more than 1 billion target to next year due to the timing of the conclusion of the TMB transaction if I understand correctly and while you have for 2025 a target about 500 million In terms of targets, just to refer to your global business, the wide range that you set for 2030 is 180 to 280 million is only due to the different range of annual flows and due to the different potential margins on the assets or are there any other factors that could explain this wide range? And then a clarification about other income and tax rate. About other income, you mentioned structuring fees. are they any recurring items for next quarters too, or do they represent a one-off item? While for the tax rate, I think that there are some one-offs for this quarter, as you confirm your guidance of 25% for the full year, but I'm asking you about this. Thank you.

Thank you, Aaron. I'm going to take a few of your questions and then Giorgio will conclude. So starting from your first part relating to the net profit, the new target, and as well the moving of the $1 million to the $26 million, Your understanding is correct. I mean, the contribution of CA and B that we were planning at the end of the year is not going to happen. Therefore, obviously the contribution and the equity transaction is going to happen in 26 and therefore as well the P&L impact from this transaction is going to be booked. And at the same time, following the good results and the good trend of the group, we were updating the guidance for, let's say, the simple reason that the projection that we see, the trajectory that we see for the last few months of the year, if nothing happens, it's complicated, we will be able to get the target. Then you refer to the other income. As you were saying, there is a one-off effect that is linked to these structural fields, but at the same time, as I was saying at the beginning, it has not to be considered one-off. for the yearly basis because it's quarterly basis for sure we cannot say that every quarter we will have this contribution but looking on a yearly basis this amount could happen that following this type of services that we are providing that came up a contribution as well on the other income on the future years. And then at the level of the tax, I think it's more close to the concept of seasonability. I mean, this quarter is always lower than in December, considering also the provision of all the dividends coming from the other countries, we will probably get an impact of tax. For that, we kept the guidance stable as per the previous.

And yeah, when it comes to the 2030 margin targets, the 180 to 280 million euros net profit from global operations Look, this range is admittedly very large. It reflects simply the addition of the lower bound target for each divisional geography and the upper bound. There is nothing else there. It certainly is a basic assumption that the business mix going forward will essentially remain unchanged or not dramatically different from what it is today. But, you know, as I said, we work every day to meet the target that we give ourselves and, you know, we certainly do our best to even, you know, do better on what we are disclosing today. It's five years. It's a pretty long period of time, but we are starting off a very strong base and I see us capable of doing very, very well.

Okay. Thank you.

The next question is from Jan White of Antonomous Research. Go ahead, please.

Hi there. Thanks for taking my questions. Just a couple from me, please. First of all, can you call out some of the most important drivers of the improved organic net inflow performance this year, please? I'm particularly interested in where you think you've seen the strongest growth in your market share, thinking about the organic flow specifically. That's question one. And question two, in terms of the Bank of Italy's inspection, can you say a bit more about the specific findings there and the remediations that you're going to introduce? Am I right to read into the statement today that the delay to T&B approval is linked to the regulator's findings? And if so, what's your view as to why the regulator has connected those things, please? Thank you.

Okay, let me take your question. So I start with the first regarding the underlying drivers of our terrific NENU money performance this year. I think if you look at the presentation that we have shown earlier, slide six, you find what is the pre-accurate detailed breakdown in terms of NENU money to different parallel lines as opposed to different geographies. Let me tell you from a qualitative standpoint that France Solutions have been doing very well. In Italy, certainly we have the contribution of Nova here, but let me mention what also we have done in Turkey, in Egypt, in the US. That is certainly our key product, our bread and butter, and we are proving now to be able to grow both catering to individual clients and institutional as well in terms of all state agreements. Let me mention that our wealth management business has been this year delivering incredible out of Asia, out of the Middle East, Switzerland, Monaco as well doing better than the previous years and we see now what is a very sustained momentum that is testament of our ability of building now a cross-border platform and being able to deal with high-net-worth, ultra-high-net-worth individuals. that recognize in Azimut the ability and the capability to deliver performance vis-à-vis even larger players. Then when it comes to your question regarding the ordinary inspection from Bank of Italy, I would refer to the press release. You should assume that we are subject to inspections every week. As you can imagine, we operate across many countries. We are subject to the supervision of 20 regulators, sometimes in certain markets like in the U.S. by two regulators in the same country. That is also the case for Italy, by the way. And there are routine inspections, so we can say that every day we are subject to an inspection. So I do not see the Bank of Italy inspection in Italy as being particularly important. different from others that we have been subject to. And also, let me say to you that the topic of this section was not the announced transaction we can read. This section was very much covering for our, you know, let's say asset management, a part of factory activities and I think very much referring to this aspect of the business that is not related to the announced transaction with FSI. You know, one of the outcomes of the transaction was that we need to put in place some very ordinary remedial actions. And as you can imagine, although these actions are not related to the TMB transaction, and considering the timeline is relatively short, we will work on this remediation plan with some very close deadlines, also suggesting that there is nothing dramatic there, maintaining what is an achievable target for the transaction to close within Q2. um you know this one by the way this inspection started even before uh the uh binding agreement uh was signed with fsi and um you know it's really to be seen as completely unrelated maybe unfortunate in terms of timing but to be honest not really a reason of concern um for us okay thanks if i can just clarify i'm not sure if i missed this in terms of the

is the delay to tnv approval a direct consequence of things that the regulator has found on its um during its um ordinary inspection or or am i reading that incorrectly not at all you know it's a procedural uh if you want and as we said um very often um

The two things are separate. There is not really, we should not see the TMB transaction and the inspection as to be related to each other. As a matter of fact, the transaction occurs in a way where the company that is paying off half of our network is the one that was subject to the inspection, but nothing of the activities that will be spun off as being subject to the inspection itself was most related to um you know fund management to discretion portfolio management really nothing at all that was um related to the other days that would be spun off okay got it thank you for any further questions please press star and one on your telephone

Mr. Medda, there are no more questions registered at this time.

Okay, let's close the call here and let me wish everyone a good end of the year and obviously we keep looking forward to seeing you soon. Thank you.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.