ILTY Illimity Bank SpA

SIGNIFICANT AND SUSTAINABLE PROFITABILITY

ROBUST CAPITAL BASE INCLUDING DIVIDEND FLOW

• Shareholders’ equity 1 billion euro in 2023, 1.4 billion in 2025
• CET1 RATIO constantly above 15%
• cumulated DIVIDENDS of ca. 180 million euro over the Plan horizon2

STRATEGIC ALLIANCE WITH THE ION GROUP

License agreement signed for illimity’s IT platform which will generate revenue of 90 million euro by 2025

Wide-ranging collaboration agreement also including an overall investment of up to 9.99% in illimity’s share capital to be achieved through a capital increase reserved to the ION group for 5.75 million ordinary shares and warrants for a further 2.4 million shares

Resolved to convene the Extraordinary Shareholders’ meeting on 29 July 2021 to adopt resolutions on capital increases

B-ILTY is born, the first direct bank at the service of small corporates: launch by the fourth quarter of 2021

NEW HYPE: launch by the third quarter of 2021

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1 Ratio between net profit for the year and average net equity. Annualised. Rounded figures.

2 On the assumption that the ECB’s current restrictions on dividend payments for the period through 30 September 2021 are not confirmed.

Chaired by Rosalba Casiraghi, the Board of Directors of illimity Bank S.p.A. (“illimity” or the “Bank”) yesterday approved the illimity Group’s 2021-25 Strategic Plan (the “Plan”).

The Plan is based on the solid results accomplished, first and foremost the already achieved return on equity (ROE3) of around 8% for the first quarter of 2021 and expected at 10% for the year 2021 as a whole, with a forecast net profit of between 60 and 70 million euro while maintaining a low risk profile and a robust capital base

The results achieved are based on a series of strategic decisions that have proved to be correct:

• illimity has focussed on loans to SMEs and specifically in three segments of significant interest:
  • performing loans to corporates: a market worth 700 billion euro4 where in two years of activity, illimity has succeeded in becoming a reference player, disbursing corporate loans of around 1 billion euro and gaining a key position also in the Acquisition Finance sector;
  • unlikely to pay (“UTP”) corporate loans: a rapidly growing market where transactions of over 35 billion euro5 are expected to take place between 2021 and 2025 and where illimity is already positioned as one of the leading operators;
  • corporate NPLs: a market where transactions of over 140 billion euro6 are forecast to take place between 2021 and 2025 and where illimity has already succeeded in becoming one of the largest private investors over the past two years.
• illimity has built up a team of over 650 professionals with significant expertise that is not always available in the banking sector. In fact, the illimiters come from over 200 different organisations. With 70% of illimiters coming from non-banking entities, particular importance has been given to experience in the various business sectors, with Tutors – experts in industries and districts – playing a central role in the SME investment and lending process;
• illimity has placed considerable focus on technology in all its sectors of activity, and among other things has developed proprietary software architecture with features unique of its kind: fully digital, modular, in cloud and therefore highly flexible and totally scalable, capable of continually integrating innovations and new fintech;
• illimity has built ESG principles into its various activities from the very beginning and has already achieved important goals with a strong commitment to going beyond, also by including qualitative and quantitative objectives in management’s medium-long term incentive scheme:
  • on Environmental matters: in 2020 illimity achieved carbon neutrality at a Group level, uses electricity produced 100% from renewable sources, and is committed to extending the adoption of ESG metrics when assessing all its lending positions over the duration of the Plan;
  • on Social matters: illimity makes people its strength and this is reflected in a system of corporate welfare and training that is one of the best in Italy, in enhancing the values of Diversity & Inclusion at all levels of the organisation. Thanks to this approach, the Bank has obtained Great Place to Work® certification for two consecutive years. With the creation of Fondazione illimity, the Bank has gone beyond the boundaries of its organisation, fostering an ecosystem of partnerships which, starting from the regeneration of real estate assets, will give rise to projects with a social impact;
  • on Governance matters: right from the start, membership of the Board of Directors has been fairly balanced and illimity has already consolidated important processes by setting up a Sustainability Committee and publishing a Voluntary Non-Financial Statement for 2020 as well as the illimity way policy. illimity’s commitment on this front is to enhance the value of and improve its direct and indirect ESG profile in all its areas of activity.

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3 Ratio between net profit for the year and average net equity, annualised.

4 Bank of Italy figures – “Banks and financial institutions: loans and funding by sector and local area” – December 2020.

5 6 Source: Estimates based on various market sources (including, inter alia, the Bank of Italy and PwC). Estimates relate to the entire market of transactions in non-performing loans, as accurate projections for the SME segment alone are not available.

For more details view the entire announcement: https://assets.ctfassets.net/0ei02du1nnrl/5axfHp04Yvtgl91sMwCDcp/008507c4c77036fc29c98e2aedf30087/illimity_Strategic_Plan_2021-25.pdf

For further information:

Investor Relations Silvia Benzi: +39.349.7846537 - +44.7741.464948 - silvia.benzi@illimity.com

Press & Communication illimity Isabella Falautano, Francesca D’Amico +39.340.1989762 press@illimity.com    

Sara Balzarotti, Ad Hoc Communication Advisors +39.335.1415584 sara.balzarotti@ahca.it

Wire Service Contact:InvestorWire (IW)Los Angeles, Californiawww.InvestorWire.com212.418.1217 OfficeEditor@InvestorWire.com

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