Good afternoon. This is the Chorus Call Conference operator. Welcome, and thank you for joining the ANIMA Holding full year 2022 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 may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Alessandro Melzi, CEO. Please go ahead, sir. Thank you very much. Hi, everybody, thank you for attending our full year 2022 conference call for our full year results. I will start as always from the presentation, so page four, summary slide. End of year asset under management, EUR 177 billion. EUR 1.6 billion of net new money during the year. Steady margins, notwithstanding the strong impact coming from the decrease in asset under management, so the market effect on our assets. The positive flows, especially thanks to the diversification of our net flows and our source of distribution and from PAC, from accumulation plan. Negative WAP, of course, in line with the average of the Italian industry. Looking at the financials, fixed fees almost stable if compared to 2021. The top line was impacted, of course, from performance fees that decreased significantly as compared to last year. EBITDA margin as usual above 70%, thanks to the resiliency of our top line and cost efficiency. The drop in net profit is also partially explained by the tax relief of last year on goodwill that impacted, positively impacted, the result by EUR 24 million approximately. Cash flow continued to be strong and important, enabling us to remunerate our shareholders with more than 60% payout, plus an additional 5% cancellation of shares. Page five. Our business by segment as always, nothing to be particular outlined. 50% of retail and 50% of institutional. This is our breakdown of assets. Page six. Looking at the performance of our funds, we are more or less in line with Italian industry for the full year. If you look at the funds breakdown by category, we continue to be skewed towards flexible and balanced funds. This is our characteristics, so we are very much focused in on flexible and balanced, given also the characteristic of our client base. Page seven. The new product launches in the year. I think this is an important slide because it shows how the vitality of our distribution network was strong also in 2022. The year was tough. We know the negative performances affected all asset classes. We have been able to launch 23 new target date funds with gross inflows of EUR 4.5 billion, demonstrating, as I said, the vitality of our distribution networks. In January 2023, we restarted as well with important new funds that collected already more than EUR 300 million of gross flows. Page eight. These gross flows and this activity was sustained by the activity that we do recurrently with our distributors and where we pushed even more in 2022 because we believe that it's very important for us to stay close to our clients in these moments where it's difficult to explain to the client base the situation and where we have to put the face in front of them. As you can see, we did events, virtual events, more than 156 new contents. Also we had a rebound of activity in presence, more than 400 meetings with more than 10,000 attendees during the year. Of course, we also continue to provide the B2B and B2C services, sort of call center to our, to our client, with over 150,000 calls answered during the year. As you can see in the last years, we increased dramatically our activity in line with the side that we have been able to gain as a company. Page nine. Sustainability. We continue to strongly invest in the sector. We believe it's very important, and we want to continue to push on that. We upgraded during the year, existing fund from Article 6 to Article 8. 38 funds involved. Approximately EUR 26 billion of assets reconverted into Article 8 funds. More than 40% of our AUM now are under Article 8 regulation. But not only regulation and re-clasifications, but also training and education. We continue to invest in training and educational activities inside and outside the company. This is also our second year of publishing the sustainability report on a voluntary basis that is also audited. We continue to push a lot on that. ANIMA Net Zero, this is our first Article 9 fund that was launched in December 2022. We adopt the science-based targets to select criteria to select the companies in the portfolio. Page 10. An update on the agreement that we reached at the end of last year with Crédit Agricole Italia. As you may remind, we, as a company, we have an historical agreement with Credito Valtellinese. We signed the acquisition of their former asset management company in 2012 with a 15 years agreement. Given the merger between Credito Valtellinese and Crédit Agricole, we had to sit down in order to reshape our relationship with the new group. We had an agreement, of course, not being subject to change of control clauses, as we always said. Therefore, we were able to reshape it with them, keeping the original duration throughout 2027, and reshaping the clauses of the agreement in order to preserve the industrial value of the original partnership. We are very happy from that because we think that we can, of course, Crédit Agricole is beyond Amundi, the pivotal position on the network would be as sure to promote it for sure. We will be there. We are one of their partners, and we are very happy of the agreement that we found. We also have been able to negotiate a commitment to keep our AUM at least at the same level at the beginning of 2022 throughout all the duration of the agreement. Page 11. This is if you want an highlight of the agreement we have in place, just to remind you what are the characteristics of the different agreements. Banca Popolare di Puglia e Basilicata, Banco BPM, Monte Paschi, Crédit Agricole Italia, and Poste Italiane. Some numbers. Page 13. If you look at the P&L, in terms of net revenues, we are substantially flat if compared to last year. EUR 80 million less, EUR 7 million less. The strong impact came from the performance fees. As we said before, last year was our record year, and this year was our lower year, so we went from the star to the bottom. Total revenues -28%. Total expenses substantially flat. Therefore, EBITDA -34% to EUR 255 million approximately. Net income, EUR 121 million approximately, -49% if compared to last year. If you look at the margins, the margins are substantially stable in spite of a negative return of the risk-off e ffect, asset classes. This was driven also from the decrease on the Class 1 AUM with a lower profitability. Cost income, excluding performance fees, remains at the best European level among asset managers. This is demonstrating our capability in all situations to keep costs strictly under control. Tax rate remains high given mainly due to the fact that we paid an interco dividend at the beginning of this year, a significant dividend, insisting on the result of 2021, therefore we have a higher tax rate for this year. If we compare the tax rate with 2021, it's also impacted, as I said before, by the tax relief on goodwill that positively impacted 2021 by EUR 24 million. Page 14, margins. I was saying before that the decrease in the lower profitability assets on class one mandate impacted the of the average profitability. We have also to say that if you look at the at the bottom on the left side of the page, the table, if we can, we look at the inflows in terms of asset classes, the mix is is favorable because we have a decrease on bond and flexible, but we have strong increases in terms of any money on balanced funds, equity and cash. Overall, the profitability was substantially flat. Also, if you look at the mix of the different asset classes in terms of net inflows. Page 15. Net management fees, of course, on the left side of the page, were impacted by the negative market effect. We reached the, I mean, we got back to a level of the fourth quarter of 2020. Placement fees are back to a normalized level after the pandemic. We go on personal expenses, we can see a slight increase in the fixed component. This slight increase is driven by investments in HR and also in new part of the alternative business where you know that we are investing. Variable compensation is bringing down the total cost reflecting the decline of the financials of the group if compared to 2021. Profitability, page 16. I think it's interesting to outline that the... even though in absolute terms, of course, we had a decrease in on our numbers. If you look more in depth in that, at the profitability, excluding performance fees, of course, we registered in the last three years a positive trend. I think that the favorable product mix in terms of managing money and the higher depreciation also of low, low fees class one mandates drove this slight increase. The other fees increased due to higher volumes of commercial activities. We have a positive element there. Operating expense is almost flat during the period. As a result of these items, of course, the EBITDA increased, showed the positive trend of increase during these three years, demonstrating once again the strong resiliency of this company in different market situations. Page 17. Cost efficiency. On the left side, we can see the total cost, personal cost. Total personal cost decreased mainly because of the lower variable compensation awarded during the year. If you look at the operating expense instead on the right side of the page, we have a slight increase because of several elements. One of this one is the business development. We got back to a significant level of investment on marketing activities that we stopped basically during the COVID, the pandemic period. Marketing and new FTEs, as we said before, for new areas such as alternative and in order to increase our skills and competencies moreover on the investment side. On the rest of the cost, we have a limited cost inflation, mainly due to utilities costs, so energy cost and info providers, also because of the trend of the dollar. Page 18, net financial position. In 2022, the net financial position is impacted by EUR 95 million of dividend paid, EUR 95 million of buyback, EUR 74 million of tax paid. We continue to generate a strong amount of cash. The company is cash generative. We demonstrated so in the last 10 years. This cash generation enable us to keep flexibility for possible extraordinary transactions, new buyback or treasury stock cancellation, and debt reduction, as we did this year. Shareholders remuneration. We wanted to highlight, page 19, sorry, a few characteristics in terms of shareholders remuneration of our group. In 2017, we did an M&A when we bought Alleanza SGR and the going concern of Poste Italiane for a total consideration of EUR 970 million. We partly financed these acquisitions through a capital increase in March 2018 of EUR 300 million. In 2019, between 2019 and 2022, we carried out buybacks for a total of EUR 221 million, and we canceled more than two-thirds of the share issued in March 2018. On top of that, ANIMA paid ordinary dividends each year for a total amount of EUR 320 million. Basically giving back more than net proceeds of the issue of March 2018. With a dividend yield stable in the region of 6%. This, in our mind, is to demonstrate our capability to remunerate the capital of our shareholders and also the stability of the remuneration that we provided in these years. Page 20, we provided some detail in terms of cancellation of shares. As we said, we would propose to the AGM the share cancellation of 5% of the capital, the share capital, bringing total outstanding number of shares to EUR 329 million of shares, approximately. Some final remarks. First of all, how was this year? I mean, I think that we went through one of the toughest year for our industry for sure in the last 10, but also if you look close, a little bit backward. ANIMA, we were able to achieve many money, solid financial returns. We provide a double-digit rate remuneration to our shareholders. On top of that, we believe that if you look forward, given this year, that was a year of resiliency, of resistance. If you look at 2023, we still have EUR 2 trillion of deposits on parent accounts in Italy with a significant upside. In the previous financial crisis, the system suffered for significant outflows. I think in 2022, the system demonstrated an incredible maturity in this respect. I think the positive element of the... for a rebound are still there. Higher interest rates provides more returns for our clients. Higher interest rates means no more pressure on margins. In this year, in 2022, we suffered because of the rapid, very rapid and adjustment of interest rates. I think that in the medium run, this is positive for our industry and for the company. We continue to have to keep a high amount of cash on the balance sheet, granting our, the flexibility for to pursue an important shareholders remuneration, opportunistic M&A, and why not more structural deals, potentially linked to the banking consolidation when and if will happen. Which 2023, the last slide. We wanted also to talk about our strategic partnerships because I think that it's important the agreement we signed with Credito Valtellinese, with Crédit Agricole Italia. This is the second change of control of one of our partner we experienced. The first was the one of Banca Popolare di Milano when it was merged with Banca Popolare in 2016. Last year happened to Credito Valtellinese with Crédit Agricole Italia. I think that the relevant aspect of that is that we were able in both situations to renegotiate the agreement, to keep our assets and to keep our relationship bringing, being able to bring our capabilities on the table and our experience in managing these type of agreements. In the case of Banca Popolare di Milano, we end up buying Alleanza SGR. In this case, we end up signing a new agreement with Crédit Agricole Italia. I think that our capability to manage this agreement and the legal framework of this agreement demonstrated to be important, strong and resistant. Of course, we have another big, one of our key partners that is Banca Monte dei Paschi. There are no change of control clauses on the agreement that we have. We'll see what will happen in the next near future, probably given that Monte dei Paschi's rumor being to be one at least part of the consolidation process. We believe to be value. We believe that ANIMA know how to manage this type of activity for the banks in particularly, and I think we'll be able to do so also in the future. I thank you all, and I remain fully available for questions. This is the Chorus call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and One at this time. The first question is from Alberto Villa of Intermonte. Please go ahead. Good afternoon, thanks for taking my questions. I have three questions. The first one is regarding the distribution agreement with Crédit Agricole. Thanks for sharing a few details on that. I was wondering if you can tell us how it was gone last year, if the assets are stable, excluding the performance, compared to the beginning of the year, which I understand is the aim of the agreement from now onwards until 2027. In the case, how should we expect to work the adjustment mechanism you have agreed upon with the bank? The second one is on, well, what happened with the other players on the market. I'm referring to the agreement announced by UniCredit and Azimut to set up a new asset management company. I was wondering if you had been involved in any negotiation with the bank for this kind of agreement or what has happened, if any, involving ANIMA on that. Finally on the capital shareholders remuneration, should we then expect, excluding any major M&A, a pass of buyback, a pace of buyback that is similar to what we have seen so far in the last three years? Thank you very much. Thank you, Alberto. Well, first of all, let's start from the distribution with CAI. Last year was a tough year. We were negative by more than EUR 400 million. Therefore, this is on the net inflows. We were negotiating. I hope and I think that the signing of this agreement will change the sign of our net inflows with them. How it works, it works that they will have to, I mean, for the agreement, we fixed as a reference level of asset under management, excluding performance, market performance, the level of assets end of 2021. Basically, we will have to recover the 2022 performance and then keeping flat the assets apart, excluding the net, the market effect. This is how it works. As not UniCredit, no. We are not being called by UniCredit on that. We weren't, we didn't negotiate, but we didn't discuss in any manner, I mean, the topic. We read it on the newspaper. I don't have any further comment on it. In terms of buybacks, let's say that if we will not have strategic development on the table, as we said in the last few years, we will try to remunerate... We will remunerate, we will not try. We'll remunerate our shareholders with a mix of dividend and potentially buybacks. The amount, we'll see. We have to think about it. We'll see how the year will go on. For sure, the idea is to remunerate through dividends, buyback, and buyback with a cancellation of shares, as we did in the last years. At the end that we canceled in the last three or four years, 14% of the share capital. Okay, thank you. The next question is from Elena Perini of Intesa Sanpaolo. Please go ahead. Yes. Good afternoon, everyone. I've got three questions. The first one is the fact related to the discussions on potential ban of inducement. We have read in the press about the debate at European Commission level. What's your view on that? How could you address a potential cancellation of inducements? The second one is related to the potential guidance on cost and tax rate for the current year. If you can update us on what you see as developments for net inflows in the coming months and the level of performance fees in the past months, if you have had any. Thank you very much. Hi, Elena. Well, let's start from the ban on inducement. How I see the situation is that the ban on inducement, in my opinion, is something that is negative. Is negative for the system, and for the entire system, meaning the clients and the operators. This experiment was had been done by I remember U.K., where the FSA also released a report where we clearly see that the lower part of the market of clients, so the clients with less money, were abandoned by, in terms of advisory and by networks. I think this is a strong negative point and this type of system. Of course, this will be disruptive potentially in the long run for also for the system distribution production in the asset management. I'm not positive, as you can understand. I think for what concern ANIMA, we have our agreement in place. I think that such change in the market would be fairly protected. We would need, of course, to reshape our relationship with our distributors a little bit, but I'm not worried about that much because we have our agreements and they will continue to stay in place. This is something that in any case would never happen in two days. It's something that would entail a period of transition for sure. Let's see. Let's see what will happen. In any case, I would like also to outline and to remind that our profitability on average on the rate is 26 basis points. I think this protects significantly our business and our capability to stay on in the cost and tax rate. Cost, well, we see some cost inflation. I mean, continue to change the inflation. We see some cost inflation on costs. We can see it also in the last part of the year. As far as I can see is still something in the, let's say, low part of, let's say low single digit in any case. Something not dramatic. In any case, there is some cost inflation coming from energy, coming from the dollar. Even though we see that this trend may revert also suddenly. Let's see, let's see. In terms of tax rate, the tax rate expected, our guidance for 2023 is below the 2022 in the region of, let's say, 33%. Finally, net inflows. Well, net inflows, what I can say, is not easy to make estimate on net inflows also this year because the situation is still fairly bumpy. What I can say is that we started the year pretty well, even though we registered EUR 34 million of net inflows. This is driven by a mandate, an institutional mandate that we lost, only partially compensated by other institutional inflows. When we look at the net inflows on a monthly basis, this may happen, as we always said. Just to give you an idea, on the retail side, we were positive. This is, I think, is a positive sign for us. The market now is helping. Let's see. Let's see. Depends very much on how will be the stability of the markets, of the system during the year. In terms of performance fees, still, I mean, nothing to outline particular. We closed the year, registering performance fees on the benchmark fund. As you know, on the benchmark fund, you can catch and register the performance fees only once a year at the end of the year. For what concern the high watermark fund, so the proper and absolute return funds, it's still not easy because the distance from high watermark, we have still, of course, important distances from the watermark. Even though what we can, what we may expect is that through new target-based funds, potentially catching performance fees, we may have some satisfaction during the year. Okay. Thank you very much. The next question is from Domenico Santoro of HSBC. Please go ahead. Hi, good morning. Just a couple of questions from my side. First of all, can you give us a bit of sense how the net financial charges can be this year, given that you have now a significant amount of cash and given that interest rates they went up significantly, you might invest this at a higher rate, at higher yield, and this could, you know, offset the charges on the other side on your liabilities? Alternatively, you can tell us whether you expect, you know, to change again the mix of your liabilities and save a little bit of money. Just how much could be this line in 2023? Another question on margins. I wonder if the market performance in the first part of the year in January helped you a bit to recover margins to a recovery margin in the first part of the year, given the slippage in the fourth quarter. Then a question on the payout. I understand, I mean, you want to remunerate more, all things equal, by buyback or dividend. I wonder whether the 60% payout ratio is something sustainable for the, you know, in our model in case, again, nothing changes. Thank you. Okay. Ciao, Domenico. Well, interest rates, I see an upside despite uncertainties because all our debt is fixed. We have two bonds outstanding with fixed interest rates and the remaining part of banking debt, EUR 80 million approximately. That is fully covered, for no interest rate risk as of today. Until we'll have the need to refinance, of course. That is far away still. What may happen is that last year we registered a negative performance of our liquidity invested in our funds. We lost approximately EUR 4 million. There I see a potential upside because we are investing at the moment our liquidity through funds, term deposit, BTPs. We are investing in different instruments that may provide more interesting returns for 2023. If you look at the margins, yes, the answer is yes. In the first part of the year, we are recovering part of what we lost in the last part of 2022, because in December, November, December 2022, we registered a negative performance of all asset classes. Therefore we are recovering part of that in the first part of the year. Absolutely is, this will be beneficial. In terms of remuneration, I would stick to my, to our guidance, long-term guidance in terms of dividends of 50% of our reported consolidated net income, even though as we demonstrated more than once, we will try looking at the situation at the time, we will try to remunerate as much as possible our shareholders. Understand. Thank you. For any further questions, please press star and one on your telephone. The next question is from Luigi De Bellis from Equita SIM. Please go ahead. Yes, good afternoon. Just one question on the M&A. Can you provide us an update on the, on the strategy? You mentioned it, the possible external growth, both on an opportunistic basis in a context of mergers between banking groups. Can you elaborate on the first point, I mean, opportunistic opportunities, in which, sector category? Thank you. Hi, Luigi. Well, yeah. Opportunistic means that in particular what we are looking for, as always, is distribution potentially. This is mainly linked to the consolidation process. Not only, mainly linked to the consolidation process. In this, not only because for instance, we signed with Banca Ifis another partnership, you know, that we are pushing a lot on the partnership with medium-sized Italian banking group. In this case, it's not an M&A but is an enlargement of our distribution networks. We continue to look for potentially additional skills. teams that may be teams as people, but also companies with potential interesting strategies. On top of that also, there is link to the skills and competencies. We may look also the alternative business where, as you know, we are expanding organically as of today, but we are open to see if there are opportunities, interesting opportunities in Italy, I would say, in order to accelerate this growth path. Thank you. Mr. Melzi, there are no more questions registered at this time. Okay. Thank you very much to all of you for attending our 2022 full year conference call and see you in two months. Thank you very much. Bye-bye.