EMILIA ROMAGNA FACTOR S.p.A.

Story

Shareholders

BPER Group

What is factoring

With recourse factoring

Non recourse factoring

Export factoring

Maturity factoring

Advantages for the company

Contacts

Factoring: the Italian market

STORY

Emilia Romagna Factor S.p.A. was

established on 21 April 1994 with the

involvement of leading national and local

banking and industrial partners who

shared and approved its aims:

• To operate as a pluri -captive

instrument for industrial members;

• to create an association of leading

private companies and the credit

system;

• to offer a factoring product to the customers through a modern conceptof direct participation between bank and company. Since 2010 the company entered the BPER Group, that now holds the 94,403 %of the share capital.

Emilia Romagna Factor S.p.A. is registred to the Bank of Italy Financial intermediary list (ex. Art 107 of the Italian Consolidated Law on Banking).

SHAREHOLDERS

Currently BPER Factor (also Emilia Romagna Factor or Emil-Ro Factor) has a fully paid up share capital of € 36.393.940. Equity : € 81,6 million

Since July 1° 2010 BPER Banca banking group is the absolute majority shareholder of BPER Factor.

94,43%

4,64% 0,86%

BPER Banca S.p.A.

Sacmi Cooperativa Meccanici di Imola s.c.

CONAD s.c.

BPER GROUP

BPER Banca, established in1867 in Modena, is the leading company of the group. It is the sixth Italian

banking group, operating in 18 Italian regions with a network of approximately 1.300 branches and 2

million customers.

The group works in all main

market segments through

subsidiaries or joint venture :

Corporate & Investment

Banking, Wealth Management &

Insurance, Leasing, Factoring

and Consumer Credit. BPER

Banca assists customers in

foreign markets also thanks to

the work of many branches in

East Europe and South East Asia.

Since September 2011 BPER Banca is listed in the FTSE MIB, the most significant share index of the Italian Stock Exchange which includes the shares of the 40 largest Italian and foreign companies listed on the markets .

WHAT IS FACTORING

Factoring is a management support and a financial

technique, focussed on meeting the needs of managing

companies’ supply credit.

Factoring involves different services:

• administration, management and

collection of receivables

• measurement of the customer's

reliability

• advance payment of receivables before

due date

• legal assistance during the recovery of

receivables

• guarantee of successful transactions

Factoring is typically oriented to a lasting relationship

with the customer, rather than for one specific

transaction, so that we can assist the company in

administrative, organisational and financial functions

related to managing receivables.

FACTORING: THE ITALIAN MARKET

Factoring turnover in Italy Euro 221.597.438

Nonrecourse

Recourse

(Assifact data 31/12/2017 – euro x 1000)

63.115.362

39.504.654

29.289.056

13.244.604

12.040.955

9.888.054

8.947.409

4.607.145

4.578.474

4.403.074

3.653.420

3.320.014

3.117.849

3.020.358

2.979.852

2.448.577

2.009.986

1.767.006

1.375.955

1.312.178

1.209.948

1.117.347

892.246

859.197

808.461

677.206

517.616

407.437

361.700

122.299

MEDIOCREDITO ITALIANO

UNICREDIT FACTORING

IFITALIA

FACTORIT

BANCA IFIS

FIDIS

UBI FACTOR

SACE FCT

MPS L&F

MBFACTA

EMIL-RO FACTOR

SG FACTORING

GE CAPITAL FUNDING SERVICES

BANCA FARMAFACTORING

CREDEM FACTOR

CRÉDIT AGRICOLE EUROFACTOR

BANCA SISTEMA

BCC FACTORING

FERCREDIT

FACTORCOOP

AOSTA FACTOR

IBM ITALIA SERVIZI FINANZIARI

CLARIS FACTOR

ENEL.FACTOR

BARCLAYS BANK

SERFACTORING

BANCA CARIGE

BURGO FACTOR

GENERALFINANCE

BANCO DI DESIO E DELLA BRIANZA

WITH RECOURSE FACTORING

Factoring with recourse concerns a product with a

mostly financial content that allows customers to be

able to have additional or alternative credit lines

compared to a self-liquidating bank loan.

The activity consists of the continuous assignment

to BPER Factor of repetitive receivables arising

from the supply of goods or services claimed in

respect of solvent customers.

The service requires the assignment to BPER Factor

of all receivables claimed towards assigned

customers and the assignment of more than one

customer simultaneously.

Different situations in relation to the specific

risk conditions can be also considered.

By accessing the with recourse service the

customer/supplier gets an initial assessment,

monitored for the duration of the relationship, of

each transferred customer, the administrative

management of receivables starting from issuing

an invoice to the collection and the financial

advance of receivables.

NON RECOURSE FACTORING

The non recourse service provides for

BPER Factor taking the risk of non-payment of

receivables by assigned debtors.

BPER Factor guarantee is limited to a revolving

credit line previously granted to each debtor.

BPER Factor, at its own expensed, performs all

the activities related to the recovery of the

unpaid guaranteed receivables, either in or out of

court.

If no financial advance is requested, BPER Factor

offers the "only guarantee " service. In this case

the Debtor does not receive any communication of

the assignnment; the Supplier will follow directly

the collections, informing BPER Factor only of

those delayed payments which exceed a fixed

time frame, for the purpose of the recovery.

EXPORT FACTORING

The non recourse service is

also applicable to foreign

credits except for limitations

imposed by the legislation of

the Debtor's country of

residence.

BPER Factor works with

several foreign countries,

both directly and through

local correspondents, this

way succeeding to offer

high expectations for the

service provided to its

Clients.

A dedicated team of experts and the consolidated collaboration with an international receivables

insurance company allow us to offer our customers a quick assessment service of debtors and the

administrative management of collections that includes also any recovery actions in or out of court.

MATURITY FACTORING

Maturity is an interesting operating techniquethat is applicable both to with recourse and non recourse

factoring. BPER Factor pays directly the receivables to the Supplier at their original due date. Thanks

to specific agreements, BPER Factor follows the collections directly from the Debtor.

The Supplier has in this way the

certainty of its cash flow and, in case of

non recourse, of the collection too.

Maturity is often matched to a further

extension period granted to the Debtor

in addition to the one already agreed

with the Supplier.

This additional extension period is

previously agreed in relation to length

and cost so that the payment effected by

the debtor includes both the amount of

capital and interests.

capital and

ADVANTAGES FOR THE COMPANY

BPER Factor services enable companies to achieve immediate and significant benefits: • competent evaluation of Italian and foreign customers • elimination of the risk of non-payment of non recourse assignments • Planning and optimization of cash flow and treasury • Management of credits and collections transforming fixed costs into variable ones • increase of its financial capacity monetizing receivables • increase of business development by reducing the risks

SALA CONSIGLIO

Photographic reproductions were taken from Emilia Romagna Factor S.p.A. head office.

On the cover, a painting by G. Cavallini that represents the task of factoring. The painting is owned by Emilia Romagna Factor and is exposed at the head office of Strada Maggiore.

www.emilro.it - emilro@emilro.it

Emilia Romagna Factor S.p.A.

Strada Maggiore, 29 – 40125 Bologna (Italy)

Tel. +39 051 6482111 – Fax +39 051 267557