FY 2014 Results Presentation Milan, March 10, 2015 2 PRELIOS GROUP - PowerPoint PPT Presentation

PRELIOS FY 2014 Results Presentation Milan, March 10, 2015

2 PRELIOS GROUP Integrated management platform • Through independent operating companies, Prelios Group is the first platform of real estate finance and specialized services for the management and value enhancement of third parties’ portfolios in Italy. • Our Group comprises an extremely well-qualified structure which includes about 500 employees in Italy and abroad, with significant professional skills and a track record of excellence in the international arena.

3 PRELIOS FY 2014 Highlights  As already anticipated upon the approval of the nine months 2014 results, the performance of FY2014 confirms the projections included in the Plan with consolidated improvement against the same period of 2013.  Revenues generated by the service platform confirm the projections included in the Plan, while EBIT improved also thanks to the persisting focus on cost control.  Return On Sales (ROS, EBIT/Sales) generated by the management platform 1) is improving at about 17% .  From a property devaluations perspective the main differences against December 2013 refer to property devaluations following the updating of the independent appraisers’ estimates (in particular for the units indirectly owned in the Tecla Fund) and the completion of preliminary deeds of transfer (in particular for the units owned in the Olinda Fund).  The Net Financial Position is in line with expectations at euro 187.6 million.  Better than expected cash in coming form the DGAG sale.  Real estate asset sales in 2014 amounted to 877.7 million euro, for a pro rata amount for Prelios equal to about 164 million euro. The exit value of sales in Dec. 2014 was approx. 6% higher than book value, excluding margins on sale of the Polish Retail area (Bereaka, JV Lucchini) , the sales on the remaining part of the portfolio were substantially in line with Book Value. As a consequence of those transactions the pro-quota consolidated debt was reduced to 0.5 billion euro from 0.75 billion euro at the end of 2013. ” 1) Value not including G&A (Holding) costs.

4 PRELIOS GROUP FY 2014 Group Results A B ( € /mln) ACTUAL DEC 2014 ACTUAL DEC 2013 DELTA DISCONTINUED DISCONTINUED (A - B) / B Revenues Mgmt Platform 70,1 68,6 1,6 2% Revenues investment 2,0 4,5 -2,5 -55% 72,1 73,1 -1% TOT Revenues -0,9 EBIT Mgmt Platform & Holding 0,6 (5,4) 6,1 112% - EBIT investment 14,4 (22,7) #### 163% 15,0 (28,1) 153% TOT EBIT #### Extraordinary Items (59,3) (153,6) #### n.a. 1) TOT EBIT post Extraordinary Items (44,3) (181,8) #### 76% 8,1 (142,6) Discontinued operation #### 106% 2) Net income (61,1) (332,8) #### 82% ACTUAL DEC 2013 ACTUAL DEC 2014 DISCONTINUED DISCONTINUED 3) PROFORMA 107,3 169,6 Net Equity Net Financial Position 187,6 152,5 77,2 86,2 Cash 31,3 69,0 Cash available 49,4 122,9 Statutory Net Equity 1) Actual Dec 2014 includes -39.1 mln of real estate writedowns and revaluations. -13.6 mln of restructuring costs and one off items and -6.3 mln of NPLs portfolio impairment. 2) Includes the one-off positive impact approx. 40 € mln related to Prelios S.p.A. debt restructuring (included into financial expenses). 3) Includes the impact of conversion of Convertible bond

5 PRELIOS Strategic Agreement with iCORE Global Prelios entered into a strategic agreement with iCORE Global , a US-based player providing real estate services globally, for the collaboration between the two companies at world level. As a result of this agreement, Prelios Integrated Services , the Group strategic business unit that through operating companies provides a comprehensive range of real estate services (property and project management, valuations, brokerage, agency and administrative management) will have direct access to over 63 countries worldwide and will be able to provide to corporate clients the services of iCORE Global, an US company operating in the real estate services worldwide, like brokerage, landlord and tenant representation. iCORE Global is the leading full service, commercial real estate provider worldwide with over 127 locations servicing 301 major cities across 63 countries and an experience of over 27 years, and has the market intelligence to handle all of your commercial real estate needs. Commercial real estate teams from around the globe are united in a centralized platform to deliver high quality services and empower strategic real estate operations for local, national and multi-national in partnership with corporations. With over $ 47.5 bln in transactions 2013, iCORE Global is the eighth largest brokerage firms in the world.

6 PRELIOS MoU with Negentropy Capital Partners LLP Prelios entered into a MoU finalized to the acquisition of 80% of Negentropy Capital Partners LLP , a London-based asset manager operating under the supervision and regulation of FCA. Such transaction will allow to create Prelios Europe , thus setting up in a very short time an AIFMD-compliant European platform capable to carry out fund raising activities, by collecting capitals from foreign investors who want to invest in Italy. Moreover, thanks to this platform, Prelios will be able to structure products in order to facilitate investments by Italian institutional investors in foreign countries. The expected benefits of international expansion are as follows: • Access to new sources of capital • Benefits from the fund raising platforms and partners’ experience in specific sectors and countries • Expanding the range of products offered to its investors • Increasing diversification of investments on an international scale in line with the strategies of the major players in the sector in Europe • Support the growth of AuM: from Italian market player to global market player Negentropy Capital Partners LLP is a London-based asset manager operating under the supervision and regulation of FCA

7 PRELIOS GROUP Prelios SGR – FY 2014 Main Achievements (1/2) • Prelios SGR 2014 main achievements:  New AUM 0.4 € mln Euro  Revenues 20.5 € mln Euro  EBIT 7.4 € mln euro (ROS 36%) • Four new ordinary full equity real estate funds were established between 1Q 2014 and beginning of 2015 :  Fondo PAI – Parchi Agroalimentari Italiani promoted for the implementation of the F.I.CO. (Fabbrica Italiana Contadina) project, sponsored by Eataly within the Agricultural-Food Market of Bologna. The Fund was established through the transfer of the area and the underwriting by numerous investors of units to be paid up in cash. Total AUM expected 95 € mln (1)  Fondo IGEA, dedicated to investments in projects with significant potential development and real estate asset renovation. The Fund is open to both institutional investors interested in financial investments and other qualified investors who will contribute with assets in kind (areas or properties).  Fondo Primo RE , dedicated to Cassa Nazionale di Previdenza e Assistenza dei Dottori Commercialisti (CNPADC) to be invested in real estate assets and real property rights with mainly an office/light industrial destination.  AURORA , completed on January 14, 2015 and established through the contribution of part of the real estate assets owned by the pension fund for employees of Banca di Roma. The real estate consists of seven properties located primarily in the city of Rome and intended use offices. • Management of Fondo ASCI , mainly owned by CdP, and dedicated to Social Housing projects in the South and Centre of Italy, increasing the number of funds under management to 26 . 1) AUM up to December 2014 around 72mln Euro, including binding agreement up to 77mln Euro – AUM expected 95mln Euro

8 PRELIOS GROUP Prelios SGR – FY 2014 Main Achievements (2/2) • Focus on ordinary and innovative new funds established with low leverage leaving the world of opportunistic funds • Increased AUM for the funds already managed • Completion of the revision and fine-tuning of the governance and of the internal regulations (policies and procedures) also in the light of the organizational changes implemented in 2013. • Agreement with Secondcap Ltd – a company authorised by FCA in London, managing a platform for transactions to be completed in the secondary market of closed-end funds, in order to increase investment liquidity in the reserved real estate funds managed by the SGR

9 PRELIOS GROUP Prelios Credit Servicing – FY 2014 Main Achievements • Prelios Credit Servicing 2014 main achievements:  Revenues 7.7 € mln Euro  EBIT -1.5 € mln euro • Acquisition of the role of Key Player on the NPL market thanks to the participation in the following transactions :  Operating partner of Fortress, for the acquisition of UCCMB  Agent in over 20 «open market» contracts and additional contracts in the pipeline with some of Italy’s main banks. • Confirmed positive rating by Fitch and Standard & Poor’s , ( RSS2/CSS2 and Above Average) • Completed transformation of the business model from captive to open market:  Reduction in fixed costs through: − Revision of the business model which included the reduction of the number of employees by leveraging on outsourcing − Outsourcing of administrative/corporate activities to SARE and development of synergies with the Group (centralization of some support/service functions).