NEXI

Company report Buy (from Hold)

30 July 2020 – 5:30 PM MARKET PRICE: EUR14.85 TARGET PRICE: EUR17.2 (from EUR15.0)

Financial Tech. - Payments

Data
Shares Outstanding (m):
Market Cap. (EURm):
Enterprise Value (EURm):
Free Float (%):
Av. Daily Trad. Vol. (000):
Main Shareholder:
Reuters/Bloomberg:
52-Week Range (EUR)
Source: FactSet, UBI Banca estimates
Performance
Absolute
Rel. to FTSE IT
Source: FactSet
Graph area Absolute/Relative 12 M
Source: FactSet
Massimo Vecchio
Senior Analyst
massimiliano.vecchio@ubibanca.it
Tel. +39 02 62753016
Dario Fasani
Analyst
dario.fasani@ubibanca.it
Tel. +39 02 62753014
www.ubibanca.com/equity-research
Upgrading to buy on digital payment
penetration growth
627.8
9,322 Nexi reported a solid set of results up YoY showing resiliency in its revenues, results
of its cost optimization exercise and cash generation capabilities. Value of acquiring
11,572 and issuing transactions recovered from the Covid-bottom and Italian cards
46.6% transactions are now to pre-covid levels while foreign and tourism related volumes
1,798
are still down YoY. During the call management hinted at the fact that the
penetration of digital payment on total payment in Italy is increasing in the
4/5%region. Management, while acknowledging that the deal with SIA remains a
Mercury UK (43.4%) “complex transaction”, disclosed that in the ISP deal there is a clause allowing Nexi
NEXI.MI NEXI IM to purchase the merchant books of the banks potentially acquired from Intesa (at
similar conditions). Nexi CEO therefore stated that this could apply also to UBI’s
8.5 16.9 merchant book. Therefore, while the increase in our target price is mostly driven by
our new free-risk assumption, the improvement in business fundamentals (i.e. higher
digital payment penetration. Recently the government raised to Eur50 from EUR25
the threshold for cashless payments) and the optionality on further M&A gives
1m 3m 12m substance to out upgrade. We move our rating to Buy (from Hold) with a TP of
EUR17.2 from EUR15.0.
-4.7% +6.8% +52.2%
-6.7% -4.1% +62.3% > 2Q20 in more details: Top line posted a -16% YoY driven by a combination
of low single-digit volume decline and stable average value per transaction and
take-rates. The cost base declined 13% YoY thanks to the fact that 38% of it is
variable (linked to volumes of transaction and level of activities on POS, ATMs,
etc.). Cash flow was negative by EUR80 million in the quarter, better than
expected. The ISP acquisition was already consolidated and dated back to 1
January 2020.
> Transaction volumes -27% in May, -14% in June, -9% last week rolling.
Volume recovery across categories began in May after the easing of the
lockdown measures. E-commerce strong growth was supportive and so were
transaction on “Italian” cards (+6% during the last week rolling). Obviously
“foreign” cards and travel & tourism are still deeply negative.
> Not a precise guidance…but an “ambition” for 2020. While a proper
guidance was not given because of the low visibility, the recovery in volumes
coupled with the implementation of the cost optimization initiatives allowed
the management to disclose some form of indication for 2020, based on the
idea that no additional lockdown measures would be implemented.
Management sees EBITDA close to EUR600 million (i.e. organic growth in line
with that posted in 2019, including the ISP business) and a “EBITDA less
Capex” materially improving vs. a year ago (also thanks to a lower capex). Our
estimates are in line and therefore were left untouched. We appreciate the fact
that management gave some form of indication on how 2020 would pan out
and we see it as a sign of strength, another reason that support our upgrade.

Financials Ratios priced on 29 July 2020

2019A 2020E 2021E 2022E 2019A 2020E 2021E 2022E
Revenues (EURm) 984 1040 1136 1224 P/E (x) 44.2 46.4 36.9 29.1
EBITDA (EURm) 503 590 675 766 P/CF (x) 35.1 35.7 28.3 25.2
EBITDA margin (%) 51.1% 56.7% 59.4% 62.6% P/BV (x) 4.5 6.1 5.2 4.4
EBIT (EURm) 382 440 500 586 Dividend Yield 0.0% 0.0% 0.4% 0.7%
EPS (EUR) 0.22 0.32 0.40 0.51 EV/EBITDA (x) 14.8 19.6 16.7 14.3
CFPS (EUR) 0.27 0.42 0.52 0.59 Debt/Equity (x) 1.1 1.5 1.1 0.8
DPS (EUR) 0.00 0.00 0.06 0.10 Debt/EBITDA (x) 2.9 3.8 2.9 2.1
Source: Company data, UBI Banca estimates Source: Company data, UBI Banca estimates

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30 July 2020

Key Financials
(EURm) 2019A 2020E 2021E 2022E
Revenues 984 1040 1136 1224
EBITDA 503 590 675 766
EBIT 382 440 500 586
NOPAT 302 344 405 474
Free Cash Flow 170 261 329 370
Net Capital Employed 2795 3775 3729 3700
Shareholders' Equity 1325 1526 1778 2099
Net Financial Position 1471 2250 1951 1601
Source: Company data, UBI Banca estimates

Key Profitability Drivers

2019A 2020E 2021E 2022E
Net Debt/EBITDA (x) 2.9 3.8 2.9 2.1
Net Debt/Equity (x) 1.1 1.5 1.1 0.8
Interest Coverage (%) 3.1 8.5 10.5 12.6
Free Cash Flow Yield (%) 2.8% 2.8% 3.5% 4.0%
ROE (%) 10.2% 13.2% 14.2% 15.3%
ROI (%) 13.6% 11.6% 13.4% 15.8%
ROCE (%) 9.1% 7.8% 9.0% 10.6%
Source: Company data, UBI Banca estimates

Key Valuation Ratios

2019A* 2020E 2021E 2022E
P/E (x) 44.2 46.4 36.9 29.1
P/BV (x) 4.5 6.1 5.2 4.4
P/CF (x) 35.1 35.7 28.3 25.2
Dividend Yield (%) 0.0% 0.0% 0.4% 0.7%
EV/Sales (x) 7.6 11.1 9.9 8.9
EV/EBITDA (x) 14.8 19.6 16.7 14.3
EV/EBIT (x) 19.5 26.3 22.6 18.6
EV/CE (x) 2.7 3.1 3.0 3.0
Source: Company data, UBI Banca estimates * Based on 2019 average price

Key Value Drivers

2019A 2020E 2021E 2022E
Payout 0% 0% 15% 20%
NWC/Sales -5.2% -6.2% -7.0% -7.7%
Capex/Sales 17.1% 14.1% 12.8% 10.6%
Source: Company data, UBI Banca estimates

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Recent developments
> 2Q20 P&L figures broadly in line but nice surprise on the cash generation
(thanks to the cost optimization initiatives). More in details, in 2Q20 and before
the consolidation of the business purchased from Intesa, NEXI reported: a) Revenues
of EUR202.4 million or -15.9% YoY – UBI est. EUR198.2 million - Consensus EUR204.7
million. MSS posted revenues of EUR87.8 million, -25.2% YoY and better than our
expectations. CDS posted revenues of EUR87.5 million, -7.7% YoY and slightly below
our expectations. DBS posted revenues of EUR27 million, -5.3% YoY in line with our
expectations; b) Adj EBITDA of EUR99.3 million or -18.8% YoY - UBI est. EUR97.1
million - Consensus EUR102.1 million; c) The normalized Net Income in 1H20 was
EUR83 million or -13.3% YoY; c) A Net debt of EUR2,307 million (including the cash
out for the acquisition, which was EUR1,000 million) - UBI est. EUR1,501 million -
Consensus EUR1,400 million. The company disclosed also the figures including the
newly acquired business from Intesa as if it was consolidated from 1 January 2020:
EUR51 million revenues in 1H20 and EUR47.6 million EBITDA. Those numbers are in
line with the FY indication disclosed at the time of the acquisition (EUR106 million in
revenues and EUR95 million in EBITDA).
> 2020 “ambition” not far away from our estimates. While a proper financial
guidance was not reinstated, management expressed its “ambition” for 2020 indicating
a possible return to revenues growth by year end. More specifically, and thanks also to
the support of the cost cutting plan, it expects: a) at EBITDA level an organic YoY
growth (including the ISP business pro-forma) comparable to the standalone one
posted in 2019. This points to an EBITDA close to EUR600 million (our estimate is
EUR590 million); b) a significant growth of the EBITDA less Capex figure, even because
the 2020-2023 capex level have been slightly reduced (we were already expecting it). In
the press release management highlighted that volumes are recovering: in 1H20
acquiring + issuing transaction reached the EUR186 billion mark or -16.9 % YoY after
bottoms of -50% during the lockdown. This is fully evident in the graphs reported in
figure 2 and 3.

Figure 1 – 2Q20 and IH20 results

(EURm, %) 2Q19A 2Q20A % chg. 2Q20E Act vs est Consensus 1H19A 1H20A % chg. 1H20E
Merchant Services & Solutions 117.5 87.8 -25.2% 82 6.8% 91 224 217 -3.1% 187
Cards & Digital Payments 94.8 87.5 -7.7% 89 -1.8% 86 188 180 -4.1% 182
Digital Banking Solutions 28.5 27.0 -5.3% 27 0.8% 27 56 55 -2.3% 54
Net Revenues 240.8 202.4 -16.0% 198.2 2.1% 204.7 467.3 451.4 -3.4% 423.5
EBITDA 122.3 99.2 -18.9% 97.1 2.1% 102.1 180.1 172.3 -4.3% 146.5
EBITDA margin % 50.8% 49.0% 49.0% 49.9% 38.5% 38.2% 34.6%
Net Debt/(Cash) 1,523 2,301 n.a. 1,501 53.3% 1,400 1,022 2,301 1,501
Source: Company data, FactSet, UBI Banca estimates

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Figure 2 – Total Acquiring and Issuing volumes - 7 days rolling % change Y/Y

Source: Company data

Figure 3 – Acquiring volumes by category

Source: Company data

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30 July 2020

Valuation

> Raising our target price to EUR17.2 (from EUR15.0). The increase is entirely
driven by the reduction in the free risk assumption (from 3% to 2%). Despite the fact
that we are reducing the chances of a merger with SIA (from 30% to 15%) the new
target prices leaves enough upside to move the rating to Buy.

Figure 4 – Valuation summary standalone

(EUR) New Old % delta

DCF 20.3 15.4 31.6%

Peers 13.8 13.7 0.9%

Average 17.0 14.6 17.1%

Source: Company data, UBI Banca estimates

Figure 5 – Target price calculation (including benefits from a merger with SIA)
(EUR) New Old % delta

Nexi fair value - standalone 17.0 14.6 17.1%

Nexi fair value - including SIA 18.4 15.9 15.6%

Chances of deal happening 15.0% 30.0%

Nexi fair value - weighted 17.2 15.0 15.3%

Upside 16.1% 7.4%

Source: Company data, UBI Banca estimates

Figure 6 – Peer group – Multiples (priced on 29 July 2020)

Company name TIER Price Currency Mkt Cap EV/EBITDA EV/EBIT P/E FCF Yield

(bn) 2020E 2021E 2022E 2020E 2021E 2022E 2020E 2021E 2022E 2020E 2021E 2022E

Global Payments Inc. I 150.6 USD 45.1 20.1 x 16.4 x 14.2 x 22.6 x 18.1 x 15.7 x 28.6 22.6 19.1 3.2% 3.9% 4.6%

Worldline SA I 72.7 USD 13.3 23.7 x 19.8 x 17.9 x 33.3 x 28.0 x 20.2 x 44.4 33.9 29.8 2.3% 3.4% 4.4%

Fidelity National Inf. I 122.9 USD 75.9 19.9 x 16.8 x 14.6 x 23.9 x 19.9 x 17.4 x 26.5 21.6 18.7 2.9% 4.4% 5.0%

Fiserv Inc. I 86.1 EUR 57.6 15.7 x 13.7 x 11.8 x 20.1 x 16.9 x 14.5 x 23.0 18.9 16.3 5.9% 6.2% 7.0%

Average 19.8 x 16.7 x 14.6 x 25.0 x 20.7 x 16.9 x 30.6 x 24.3 x 21.0 x 3.6% 4.5% 5.3%

Nexi 14.85 EUR 9.3 19.6 x 16.7 x 14.3 x 26.3 x 22.6 x 18.6 x 46.4 x 36.9 x 29.1 x 2.8% 3.5% 4.0%

Premium/(Disc.) to peers 0.2% -2.3% -42.2% 5.4% 9.0% 10.1% 51.5% 52.2% 38.4% 28.0% 26.8% 32.6%

Source: FactSet, UBI Banca estimates

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ESG Picture

Corporate Governance
Does the company have a combined Chair/CEO? No
Percentage of independent directors 23.1% (3 out of 13)
Does the company have loyalty shares? No
Does major shareholders (if any) have a “shareholders pact” in place? Yes
Has the company adopted a “poison pill” or “change of control” clauses? No
Potential dilution from stock options outstanding + not yet granted? Yes
CEO remuneration detail (fixed salary) EUR1.2 million

Chairman remuneration detail (fixed salary) EUR0.5 million

Is the share price included in the MBO criteria? Yes

Percentage of treasury shares 0%

Climate related risk

Has the company defined GHG-emissions targets? No
How does the company assess climate-related risk? Sustainability Report

Social Responsibilities
Does the company publish a separated Sustainability report? Yes
Does the company have a Chief SRI/CSR officer (or a committee)? Yes
Does the Chief SRI/CSR officer votes in any of the company’s committee? Yes
Is the Investor Relation officer a different person from CFO (or other
officers)? Yes
Is the ESG strategy integrated in the Business Plan (or in the group strategy)? No
Does the company have an ethical code? Yes
Percentage of female directors 30.8% (4 out of 13)
How is the cybersecurity issue managed? Compliance with GDPR regulation and internal
system for information security management

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Income Statement
(EURm, %) 2019A 2020E 2021E 2022E
Net Revenues 984 1040 1136 1224
EBITDA 503 590 675 766
EBITDA margin 51.1% 56.7% 59.4% 62.6%
EBIT 382 440 500 586
EBIT margin 38.8% 42.2% 44.0% 47.9%
Net financial income/expense (160) (70) (65) (61)
Associates & Others (81) (77) (67) (57)
Profit before taxes 140 293 368 468
Taxes (4) (91) (114) (145)
Minorities & discontinuing operations -0.9 -1.3 -1.7 -2.1
Net Income 135 201 252 321
Source: Company data, UBI Banca estimates

Balance Sheet
(EURm) 2019A 2020E 2021E 2022E
Net working capital 51 65 80 95
Net Fixed assets 195 195 195 195
M/L term funds 823 824 824 824
Capital Employed 2795 3775 3729 3700
Shareholders’ equity 1325 1526 1778 2099
Minorities 0 0 0 1
Shareholders’ funds 1325 1526 1778 2100
Net Financial Debt /(cash) 1471 2250 1951 1601
Source: Company data, UBI Banca estimates

Cash Flow Statement

(EURm) 2019A 2020E 2021E 2022E
NFP Beginning of Period 2418 1471 2250 1951
EBITDA 503 590 675 766
Interest expenses (116) (70) (65) (61)
Cash taxes (38) (92) (116) (147)
Change in Working Capital (11) (20) (20) (20)
Other 0 0 0 1
Operating Cash Flow 338 408 474 539
Net Capex (168) (147) (145) (130)
Other Investments 0 0 0 1
Free Cash Flow 170 261 329 410
Dividends Paid 0 0 0 -38
Other & Chg in Consolid. Area 0 0 0 1
Chg in Net Worth & Capital Incr. 829 (1000) 0 0
Change in NFP 999 (739) 329 373
NFP End of Period 1471 2250 1951 1601
Source: Company data, UBI Banca estimates

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Financial Ratios
(%) 2019A 2020E 2021E 2022E
ROE 10.2% 13.2% 14.2% 15.3%
ROI 13.6% 11.6% 13.4% 15.8%
Net Fin. Debt/Equity (x) 1.1 1.5 1.1 0.8
Net Fin. Debt/EBITDA (x) 2.9 3.8 2.9 2.1
Interest Coverage 3.1 8.5 10.5 12.6
NWC/Sales -5.2% -6.2% -7.0% -7.7%
Capex/Sales 17.1% 14.1% 12.8% 10.6%
Pay Out Ratio 0% 0% 15% 20%
Source: Company data, UBI Banca estimates

Per Share Data

(EUR) 2019A 2020E 2021E 2022E
EPS 0.22 0.32 0.40 0.51
DPS 0.0 0.0 0.1 0.1
Op. CFPS 0.52 0.67 0.81 0.98
Free CFPS 0.27 0.42 0.52 0.59
BVPS 2.11 2.43 2.83 3.34
Source: Company data, UBI Banca estimates

Stock Market Ratios

(x) 2019A 2020E 2021E 2022E
P/E 44.2 46.4 36.9 29.1
P/OpCFPS 18.4 22.1 18.3 15.1
P/BV 4.5 6.1 5.2 4.4
Dividend Yield (%) 0.0% 0.0% 0.4% 0.7%
Free Cash Flow Yield (%) 2.8% 2.8% 3.5% 4.0%
EV (EURm) 7,441 11,572 11,273 10,923
EV/Sales 7.6 11.1 9.9 8.9
EV/EBITDA 14.8 19.6 16.7 14.3
EV/EBIT 19.5 26.3 22.6 18.6
EV/Capital Employed 2.7 3.1 3.0 3.0
Source: Company data, UBI Banca estimates

Growth Rates
(%) 2019A 2020E 2021E 2022E
Growth Net Sales 5.8% 5.7% 9.2% 7.7%
Growth EBITDA 18.5% 17.3% 14.4% 13.5%
Growth EBIT 9.3% 15.2% 13.7% 17.3%
Growth Net Profit 579.1% 48.7% 25.6% 27.1%
Source: Company data, UBI Banca estimates

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Disclaimer
Analyst Declaration
This research report (the “Report”) has been prepared by Massimo Vecchio and Dario
Fasani (the “Analysts”) on behalf of UBI Banca S.p.A. (“UBI Banca”) in the context of the
ancillary service provided by UBI Banca named “Investment research and financial analysis
or other forms of recommendation relating to transactions in financial instruments” under
Paragraph 5), Section B, Annex I of the Directive 2014/65/EU (“MiFID II”). UBI Banca is an
Italian bank under art. 4 (1)(27) of MiFID II and it is supervised by the European Central
Bank and duly authorised to provide investment services pursuant to Article 1, Paragraph
5, letter a), b), c), c-bis), e) and f) of the Legislative Decree 24 February 1998, n° 58 under
the supervision of the Italian Authority for the financial markets (Consob). UBI Banca has
its head office at Piazza Vittorio Veneto 8, 24122 Bergamo.
The Analyst who prepared the Report, and whose name and role appear on the front page,
certifies that:
a. The views expressed on the company, mentioned herein (the “Company”)
accurately reflect his personal views, but does not represent the views or
opinions of UBI Banca, its management or any other company which is part of or
affiliated with UBI Banca group (the “UBI Banca Group”). It may be possible that
some UBI Banca Group officers may disagree with the views expressed in this
Report;
b. He has not received, and will not receive any direct or indirect compensation in
exchange for any views expressed in this Report;
c. The Analyst does not own any securities and/or any other financial instruments
issued by the Company or any financial instrument which the price depends on,
or is linked to any securities and/or any financial instruments issued by the
Company.
d. Neither the Analyst nor any member of the Analyst’s household serves as an
officer, director or advisory board member of the Company.
e. The remuneration of the Analyst is not directly tied to transactions for services
for investment firms or other types of transactions it or any legal person, part of
the same group performs, or to trading fees it or any legal person that is part of
the same group receives.
f. The Analyst named in this document is a member of AIAF – Associazione Italiana
per l’Analisi Finanziaria.
General disclosure
This Report is for information purposes only. This Report (i) is not, nor may it be construed,
to constitute, an offer for sale or subscription or of a solicitation of any offer to buy or
subscribe for any securities issued or to be issued by the Company; (ii) should not be
regarded as a substitute for the exercise of the recipient’s own judgement; and (iii) should
not be considered as an investment advice and is therefore not falling within the scope of
the requirements governing the provision of investment advisory services within the
meaning of the Directive no. 2014/65/EU. In addition, the information included in this
Report may not be suitable for all recipients. Therefore the recipient should conduct their
own investigations and analysis of the Company and securities referred to in this
document, and make their own investment decisions without undue reliance on its
contents. Neither UBI Banca, nor any other company belonging to the UBI Banca Group,
nor any of its directors, managers, officers or employees, accepts any direct or indirect
liability whatsoever (in negligence or otherwise), and accordingly no direct or indirect
liability whatsoever shall be assumed by, or shall be placed on, UBI Banca, or any other
company belonging to the UBI Banca Group, or any of its directors, managers, officers or
employees, for any loss, damage, cost, expense, lower earnings howsoever arising from

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any use of this Report or its contents or otherwise arising in connection with this Report.
The information provided and the opinions expressed in this Report are based upon
information and data provided to the public by the Company or news otherwise public, and
refers to the date of publication of the Report. The sources (press publications, financial
statements, current and periodic releases, as well as meetings and telephone
conversations with the Company’s representatives) are believed to be reliable and in good
faith, but no representation or warranty, express or implied, is made by UBI Banca as to
their accuracy, completeness or correctness. Past performance is not a guarantee of future
results. Any opinions, forecasts or estimates contained herein constitute a judgement as of
the date of this Report, and there can be no assurance that the future results of the
Company and/or any future events involving directly or indirectly the Company will be
consistent with any such opinions, forecasts or estimates. Any information herein is subject
to change, update or amendment without notice by UBI Banca subsequent to the date of
this Report, with no undertaking by UBI Banca to notify the recipient of this Report of such
change, update or amendment.
Organizational and administrative arrangements to prevent conflicts of interests
UBI Banca maintains procedures and organizational mechanism (physical and non-physical
barriers designed to restrict the flow of information between the unit which performs
investment research activity, and other units of UBI Banca) to prevent and professionally
manage conflicts of interest in relation to investment research in accordance with art. 23
of Directive 2014/65/EU and under art. 34 (3) and art. 37 of the Regulation 2017/565/EU.
UBI Banca is organized in such a way as to minimize conflicts of interest and has within the
meaning of art. 20 (1) of the Regulation (EU) No 596/2014/EU and has adequate control
procedures in place to counter infringements of the obligations laid down in Article 20 (1)
of the Regulation (EU) No 596/2014.
More specifically, UBI Banca has established, implements and maintains an effective
conflicts of interests policy aimed at preventing and managing the potential conflicts of
interest that could occur during the performance of the investment research services.
Insofar as the above mentioned organizational and administrative arrangements
established by UBI Banca to prevent or manage potential conflicts of interests are not
sufficient to ensure, with reasonable confidence, that risks of damage to the interests of
the client will be prevented, UBI Banca engages to provide a clear disclosure of the
specific conflicts of interests arising from the performance of investment research
services, including a description of the sources of those conflicts and the steps undertaken
to mitigate them, taking into account the nature of the client to whom the disclosure is
being made.
For further information please see UBI Banca’s website (www.ubibanca.com/equity-
research - “Informativa sintetica sull’attività di ricerca”) and (www.ubibanca.com/Mifid -
“Policy sintetica conflitti di interessi”). More details about the conflicts of interests policy
will be provided by UBI Banca upon request.
Disclosure of interests and conflicts of interests pursuant to Delegated Regulation
2016/958/EU
In relation to the Company the following interest/conflict of interest have been found:
> UBI Banca, in the last 12 months, has acted as lead manager, co-lead
manager, bookrunner or in similar roles in the context of a public offering of
financial instruments of Nexi
> UBI Banca may have long or short positions not exceeding the threshold of 0,5
% of the total issued share capital of the issuer
> UBI Banca has delivered corporate finance services to Nexi S.p.A. in the last 12
months
> UBI Banca holds an EUR55.2 million stake in Nexi S.p.A. (valued at 30 June

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2020)
On the basis of the checks carried out no other interest/conflict of interest arose.
Frequency of updates
UBI Banca aims to provide continuous coverage of the companies in conjunction with the
timing of periodical accounting reports and any exceptional event that occurs affecting the
issuer’s sphere of operations and in any case at least twice per year. The companies for
which UBI Banca acts as Sponsor or Specialist are covered in compliance with regulations
of the market authorities.
For further information please refer to www.ubibanca.com/equity-research
Valuation methodology
UBI Banca’s analysts value the Company subject to their recommendations using several
methods among which the most prevalent are: the Discounted Cash Flow method (DCF),
the Economic Value Added method (EVA), the Multiple comparison method, the SOP
method and the NAV method.
The analysts use the above valuation methods alternatively and/or jointly at their
discretion. The assigned target price may differ from their fair value, as it also takes into
account overall market/sector conditions, corporate/market events, and corporate
specifics (i.e. holding discounts) reasonably considered to be possible drivers of the
company’s share price performance. These factors may also be assessed using the
methodologies indicated above. For further information please refer to
www.ubibanca.com/equity-research.
Rating system
UBI Banca’s analysts use an “absolute” rating system, not related to market performance.
The explanation of the rating system is listed below:
Buy: if the target price is 15% higher than the market price, over the next 12 months.
Hold: if the target price is 15% below or 15% above the market price, over the next 12
months.
Sell: if the target price is 15% lower than the market price, over the next 12 months.
No Rating: the investment rating and target price have been suspended as there is not
sufficient fundamental basis for determining an investment rating or target. The previous
investment rating and target price, if any, are no longer in effect. Alternatively, No Rating
is assigned in certain circumstances when UBI Banca is acting in any advisory capacity in a
strategic transaction involving the Company.
Target price: the market price that the analyst believes that the share may reach within a
one-year time horizon.
Market price: closing price on the day before the issue date of the report, appearing on the
first page.
Distribution
Italy: This document is intended for distribution in electronic form to “Professional Clients”
and “Qualified Counterparties” as defined by Legislative Decree 24 February 1998, n. 58
and by Consob Regulation n. 20307 dated 15 February 2018, as further amended and
supplemented.
Spain: This document is intended for distribution in electronic form to “Professional
Clients” and “Eligible Counterparties” as defined by Royal Legislative Decree 4/2015, of 23
October, approving the revised text of the Securities Market Act, as further amended and
supplemented.

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IN THE UNITED KINGDOM, THIS DOCUMENT IS BEING DISTRIBUTED ONLY TO, AND IS
DIRECTED ONLY AT PERSONS WHO (A) ARE (I) PERSONS FALLING WITHIN ARTICLE 19 OR
ARTICLE 49 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL
PROMOTION) ORDER 2005 (AND ONLY WHERE THE CONDITIONS CONTAINED IN THOSE
ARTICLES HAVE BEEN, OR WILL AT THE RELEVANT TIME BE, SATISFIED) OR (II) ANY OTHER
PERSONS TO WHOM IT MAY BE LAWFULLY COMMUNICATED; AND (B) ARE QUALIFIED
INVESTORS WITHIN THE MEANING OF ARTICLE 2(1)(E) OF THE PROSPECTUS DIRECTIVE
(DIRECTIVE 2003/71/EC), (ALL SUCH PERSONS BEING REFERRED TO AS "RELEVANT
PERSONS"). THIS DOCUMENT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO
ARE NOT RELEVANT PERSONS.
IN FRANCE, THIS DOCUMENT IS BEING DISTRIBUTED ONLY TO, AND IS DIRECTED ONLY AT
PERSONS WHO ARE CONSIDERED AS PROFESSIONAL CLIENTS WITHIN THE MEANING OF
ARTICLES L. 533-16 AND D. 533-11 ET SEQ. OF THE FRENCH CODE MONETAIRE ET
FINANCIER (THE FRENCH FINANCIAL CODE) OR AS ELIGIBLE COUNTERPARTIES, AS DEFINED
IN ARTICLES L. 533-20 AND D. 533-13 ET SEQ. OF THE FRENCH FINANCIAL CODE.
IN IRELAND, THIS DOCUMENT IS BEING DISTRIBUTED ONLY TO, AND IS DIRECTED ONLY AT,
PERSONS WHO ARE QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 2(1)(E) OF
THE PROSPECTUS DIRECTIVE (DIRECTIVE 2003/71/EC, AS AMENDED FROM TIME TO TIME,
INCLUDING BY DIRECTIVE 2010/73/EC) ("QUALIFIED PERSONS"). THIS DOCUMENT MUST
NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT QUALIFIED PERSONS.
Copyright
This Report is being supplied solely for the recipient’s information and may not be
reproduced, redistributed or passed on, directly or indirectly to any other person or
published, in whole or in part, for any purpose without prior written consent of UBI Banca.
The copyright and intellectual property rights on the data are owned by UBI Banca Group,
unless otherwise indicated. The data, information, opinions and valuations contained in
this Report may not be subject to further distribution or reproduction, in any form or via
any means, even in part, unless expressly consented by UBI Banca.
By accepting this Report the recipient agrees to be bound by all of the forgoing provisions.
Distribution of ratings
Equity rating dispersion in the past 12 months
Buy Hold Sell No Rating
77.1% 18.1% 2.4% 2.4%

Proportion on issuers to which UBI Banca has supplied investment banking services
relating to the last 12 months
Buy Hold Sell No Rating
65.6% 13.3% 100% -

For further information regarding yearly and quarterly rating statistics and descriptions,
please refer to www.ubibanca.com/equity-research.
Historical ratings and target prices

Date Rating Target Price (EUR) Market Price (EUR)

23 May 2019 BUY 10.20 8.80

29 July 2019 BUY 11.70 9.80
8 November 2019 BUY 11.70 9.45
19 December 2019 BUY 13.70 10.94

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 NEXI
30 July 2020

9 January 2020 BUY 13.70 12.19

12 February 2020 HOLD 15.20 14.06
14 April 2020 HOLD 14.80 13.74
12 May 2020 HOLD 13.95 15.0

13