Generalfinance (GF) Investor presentation summary

Company history and business model

• Founded in 1982, evolved into a leading Italian factoring player for distressed companies, with international expansion into Spain and plans for Switzerland by 2026.

• Specializes in factoring for companies in special situations, leveraging a unique model where sellers are often distressed but debtors are investment grade.

• Proprietary digital platform automates processes, supporting high transaction volumes and operational efficiency.

• Maintains a granular, diversified portfolio with an average of 59 debtors per seller, far above the industry average.

• Strong, long-term oriented shareholder base with enhanced voting rights and significant insider ownership.

Financial performance and growth

• Achieved €3.87bn turnover and €28.8m net income in 2025, with turnover CAGR of 24% and net income CAGR of 38% from 2022-2025.

• Outperformed industry peers in stock price and total shareholder return, with a 283% TSR from June 2022 to February 2026.

• Cost/income ratio improved to 30.5% in 2025, with ROE reaching 41.3%, both well above peer averages.

• Net commission income is the primary profitability driver, accounting for 73% of net banking income.

• Maintains a simple, robust balance sheet with strong capital ratios and a new €30m Tier 2 bond issued in 2025.

Risk management and asset quality

• Operates a low-risk model with best-in-class asset quality; gross NPE ratio at 1.1% in 2025, significantly below market average.

• Cost of risk remains extremely low at 0.05% in 2025, supported by conservative credit stance and extensive use of insurance and guarantees.

• All factoring contracts are at variable rates, effectively hedging net interest income against rate volatility.

• Portfolio quality is high, with 81% of receivables having no payment delays and only 40% with payment terms over 120 days.

• Risk reduction in distressed factoring is achieved through legal protections, court supervision, and high-quality advisors.