1. An overview on the Italian NPLs market
Madrid, 23 September 2016

2. The peculiarity of the Italian NPLs market
SUMMARY
The peculiarity of the Italian NPLs market 1 2
Banca IFIS: the Group and its DRL Division

3. THE PECULIARITY OF THE ITALIAN NPLs MARKET The Macro Scenario
Italian Stock Banking Assets Trend
∆ month/month
€ Billion
Key Points
Decreasing Assets
In just 3 years there was a 4,6% decrease
(June 2016: bln
Dec. 2015: bln)
June
2013
3 years
June
2016
Source: ABI

4. THE PECULIARITY OF THE ITALIAN NPLs MARKET European Market Overview
NPL ratio and Coverage ratio in EU Members
Source: EBA Risk Dashboard (March 2016)

5. THE PECULIARITY OF THE ITALIAN NPLs MARKET NPL trend
Italian Gross NPL
In the last 8 years values of Gross NPLs have increased rapidly
Approximately, half of the Italian Gross NPLs in represented by RE secured loans
About 80% of loans are towards SME and Corporate
€ Billion
Breakdown of Italian Gross NPL by asset class
Breakdown of Italian Gross NPL by debtor
Source: The Italian NPL market – PwC (June 2016), Deleveraging Europe Deloitte, (June 2016)

6. In 2015, volumes of disposals have more than doubled compared to 2014
THE PECULIARITY OF THE ITALIAN NPLs MARKET NPL transactions in the Italian market
Key Points
High growing ‘market’
In 2015, volumes of disposals have more than doubled compared to 2014
In 2016, the growing trend continues with a relevant increase in the “secured” segment
The market is still also very focused on the consumer and retail Unsecured loans.
€ Billion
Source: The Italian NPL market – PwC (June 2016), Deleveraging Europe Deloitte, (June 2016)

7. The peculiarity of the Italian NPLs market
SUMMARY
The peculiarity of the Italian NPLs market 1 2
Banca IFIS: the Group and its DRL Division

8. INTRODUCTION Banca IFIS – Group Overview
Banca IFIS is a specialty finance Italian player, focused on trade receivable financing, distressed retail loans (DRL) and tax receivables
Founded in 1983 by Sebastien Egon Furstenberg, the current chairman, as a financial company focused on offering factoring to SMEs
Listed on the Milan Stock exchange (STAR segment) since 2003, with a current market capitalization of around Eu 1.0 bn
Over the years, the bank diversified both its trade receivable activity and its funding sources:
On the asset side: in 2011, Banca IFIS entered distressed retail loans and tax receivables and started, on an occasional basis, a carry trade strategy, building up a large portfolio of Italian government bonds financed through Repos, which after a peak in 2013 has been gradually reduced (around Eu 2,2 bn of govies sold in 1H15) and partially replaced by a new portfolio of floating-rate or inflation-indexed bonds
On the funding side with the launch of Rendimax (high-yield online savings account) in 2008 and Contomax (low-cost/high-return online current account) in 2013
Successful track record of acquisition:
Toscana Finanza
Interbanca S.p.A (Lending) and its Factoring and Leasing (financial & operational) businesses
Shareholder structure as of 30 June 2016
The group has a strong and diversified business model which allows it to reach outstanding results in terms of profitability and credit quality
Business Overview
B2B Trade finance
Focus on SMEs & micro companies and Public Administration
DRL
Investment in retail Unsecured Distressed Loan portfolios
Over 1,000,000 positions
Tax receivables
Purchase of tax receivables arising from insolvency proceedings
Source: Banca IFIS

9. FINANCIAL HIGHLIGHTS Banca IFIS – A diversified income generation
Net Banking Income (Eumn) breakdown by segment
1H2016 Asset structure
A strong and well diversified business model
Banca IFIS stock price
Trade Receivables
Trade receivable financing in B2B, with focus on SMEs and micro companies (around 80% of which with a Turnover < Eu 10mn) and Public Administration segments (with focus on the Pharma segment)
BANCA IFIS
Leasing
Financial and operating leasing through two distinct legal entities, GE Capital Servizi Finanziari (“Financial Leasing”), 106 TUB and GE Capital Services (“Operating Leasing”), which offers only operating leasing, in the Equipment Finance segment
GE Capital Italia
Source: Banca IFIS

10. DISTRESSED RETAIL LOANS NPL Area
DRL DIVISION
AUM 1H 2016
Banca IFIS is one of the most important players in the Italian NPLs market, finalizing, over the years, several successfull acquisitions of non performing portfolios.
The Division manages internally the acquired portfolios workout, through the brand CrediFamiglia
The DRL Division story has been built on the unsecured retail segment, becoming the reference player for the NPL market while making it a profitable business
As part of the bank growing strategy, in the last year, the DRL Division started to expand its activities also in the acquisition and management of banking assets
PORTFOLIO GBV
€ 10 billion
# positions
1 million
Gross Book Value purchased during years
2013
2014
2015
1H 2016

11. DISTRESSED RETAIL LOANS NPL Area – The process
Banca IFIS is a unique financial institution characterized by a strong entrepreneurial approach, a dynamic and result’s based culture
Deal Selection, Portfolio Valuation and Investment decision
Closing and Portfolio Onboarding
Workout Management Strategy
Collection
Back office and Monitoring
Scouting of new opportunities;
Participation to auction and beauty contest processes;
Portfolio valuation;
Investment committee decision
Contract negotiations;
Signing and Closing;
Portfolio onboarding
Loans’ assignment to the workout management teams (Call Center, Internal and External Collection agents, Legal Departments)
Recoveries from call center, internal and external recovery departments and Judicial activities (from wage assignments to RE judicial mortgages)
Back office support to call center, internal and external recovery departments;
Valuation and approval of proposed plans;
Performance and cost monitoring

12. 1.500 mln of incoming payment plans
DISTRESSED RETAIL LOANS NPL Area – Workout Management Strategy and Collection
The Portfolio management is processed in-house by the NPL Area in accordance with the highest standards of ethics, transparency and respect.
In this direction, Credifamiglia was born: this trademark focuses on ethical and sustainable collection of non performing loans.
Internal Recovery Department
500 mln of payment plans
114 collection agents which operate throughout Italy by an home collection activity
External Recovery Department
14 call centers which conduct a phone collection activity
32 DCA which perform an home collection activity
Legal
Recovery Department
70 external lawyers that, operating through Italy, support the Internal Legal Factory (45) in order to obtain Order of Assignment Wage
1.500 mln of incoming payment plans

13. DISTRESSED RETAIL LOANS NPL Area – The Portfolio
30/06/2016
Collection
NPL Gross Portfolio
Book Value
Book Value/NPL Portfolio
Internal and External Recovery Department
Non Judicial
Payment Plans
424 mln
71 mln
17%
Order of Assignment Wage
Legal Recovery Department
140 mln
32 mln
23%
Judicial ongoing workout
1.200 mln
138 mln
12%
To be processed
8.236 mln
241 mln 3%
25% of the Gross Book Value “to be processed” is waiting for the workout process due to the recent acquisitions (staging).
10 bln
482 mln
Source: Banca IFIS

14. Contacts: www.bancaifis.it Andrea Clamer andrea.clamer@bancaifis.it
Head of NPL Area, Banca IFIS