Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — Mediolanum — Q1 2015 Earnings Presentation
79 slides from Banca Mediolanum SpA's earnings presentation, Apr 29, 2015
Slide 1: Q1 2015 Results & Business Update
April 29, 2015 Q1 2015 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
Mediolanum 2 Table of Contents Q1 2015 Results and colour key Q1 2015 Group Results 3 Q1 2015 Domestic Market Results 13 Q1 2015 Foreign Markets Results 36 Business Update 41 Mediolanum Facts 50
Slide 3: Q1 2015 Group Results
3 Q1 2015 Group Results
Slide 4: Income Statement
Q1 2015 4 Income Statement Group € mn Q115 Q114 Change Entry fees 27.6 24.1 +15% Management fees 195.7 154.5 +27% Performance fees 132.9 31.3 +324% Banking service fees 22.1 22.6 -2% Other fees 9.6 8.0 +19% Total commission income 387.9 240.5 +61% Net interest income 61.0 58.5 +4% Net income on inve
Slide 5: Income Statement Salient Points
Q1 2015 5 Income Statement Salient Points Group YoY comparison Entry fees (€ 4 mn higher YoY) reflected the significantly higher inflows, offsetting the downward trend resulting from the increase in average investment size Management fees (€ 41 mn higher YoY) our #1 revenue source showed the highest
Slide 6: Income Statement by Quarter
Q1 2015 6 Income Statement by Quarter Group € mn Q114 Q214 Q314 Q414 Q115 Entry fees 24.1 26.7 23.2 22.9 27.6 Management fees 154.5 165.0 175.1 179.5 195.7 Performance fees 31.3 55.3 33.3 56.2 132.9 Banking service fees 22.6 28.6 20.9 28.3 22.1 Other fees 8.0 8.9 8.5 8.7 9.6 Total commission income
Slide 7: Quarterly Commission Income from Mgmt Fees
Q1 2015 7 Quarterly Commission Income from Mgmt Fees Group € mn 200 150 100 196 175 180 165 144 151 154 139 123 129 105 105 110 111 117 50 81 86 91 94 100 104 104 66 72 59 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 20 15 198 200 200 202
Slide 8: Quarterly Net Interest Income
Q1 2015 8 Quarterly Net Interest Income Group € mn 90 80 70 60 50 84 40 73 75 80 75 74 72 64 65 30 53 60 59 57 59 59 61 46 45 44 20 41 36 35 41 31 30 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 20 15
Slide 9: Quarterly Recurring Revenues
Q1 2015 9 Quarterly Recurring Revenues Group Commission Income from Management Fees + Net Interest Income (€ mn) 300 250 200 150 257 234 239 218 216 213 222 100 177 194 186 197 199 201 203 159 164 141 149 122 121 128 106 111 112 111 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: AUA Trend
Q1 2015 10 AUA Trend Group € bn Administered Assets (Q115: € 20.6 bn) 69.7 64.5 Managed Assets (Q115: € 49.1 bn) 57.8 51.6 45.9 46.2 40.4 33.3 34.6 30.4 29.5 26.0 23.5 20.9 21.0 17.9 13.0 9.5 7.2 4.7 5.3 5.5 6.1 0.1 0.6 0.9 1.3 1.6 2.0 2.6 3.1 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
Slide 11: Assets under Administration
Q1 2015 11 Assets under Administration Group € mn 31/03/15 31/12/14 Change 31/03/14 Change Mutual Funds & U-L Policies 39,052.0 35,332.8 +11% 30,069.2 +30% ’Freedom’ Life Policies 908.6 974.3 -7% 1,610.0 -44% Other Life Insurance products 2,038.3 2,147.0 -5% 2,589.4 -21% Banking* 14,941.7 14,578.9 +
Slide 12: Capital Adequacy
Q1 2015 12 Capital Adequacy Group € mn – as at 31/03/2015 Q115 FY14 Total Regulatory Capital Held 1,098 1,053 Total Required Capital 782 745 o/w Required Capital – Banks 534 512 o/w Solvency Margin – Insurance companies 248 233 EXCESS CAPITAL 316 308 CAPITAL RATIOS* (Mediolanum Banking Group) Total
Slide 13: Q1 2015 Domestic Market Results
13 Q1 2015 Domestic Market Results
Slide 14: Income Statement
Q1 2015 14 Income Statement Domestic Market € mn Q115 Q114 Change Entry fees 24.9 22.0 +13% Management fees 186.1 148.4 +25% Performance fees 123.3 30.1 +309% Banking service fees 17.5 18.3 -4% Other fees 9.2 7.7 +20% Total commission income 361.0 226.4 +59% Net interest income 56.1 52.8 +6% Net inc
Slide 15: Income Statement by Quarter
Q1 2015 15 Income Statement by Quarter Domestic Market € mn Q114 Q214 Q314 Q414 Q115 Entry fees 22.0 24.5 20.8 20.5 24.9 Management fees 148.4 155.9 166.4 170.6 186.1 Performance fees 30.1 52.9 31.4 52.5 123.3 Banking service fees 18.3 24.1 16.4 23.2 17.5 Other fees 7.7 8.5 8.1 8.5 9.2 Total commiss
Slide 16: Acquisition Costs in detail
Q1 2015 16 Acquisition Costs in detail Domestic Market € mn Q115 Q114 Change One-time commissions 27.4 23.3 +17% Ongoing commissions 61.7 48.8 +27% Total commissions 89.1 72.1 +24% Incentives on individual net inflows 6.8 5.0 +36% Contests & bonuses 3.2 2.9 +12% Reimbursement of costs for customer e
Slide 17: Total Net Inflows
Q1 2015 17 Total Net Inflows Domestic Market € mn Q115 Q114 Change | directly into Mutual Funds +654.0 +809.4 -19% | through ‘MyLife’ U-L policy +602.7 +7.7 n.s. | through other U-L policies -64.9 -37.7 +72% Mutual Funds Inflows +1,191.8 +779.4 +53% Other Life Insurance policies -150.8 -202.8 -26% M
Slide 18: Mutual Funds Net Inflows by Category
Q1 2015 18 Mutual Funds Domestic Market Net Inflows by Category € bn – including Unit-Linked policies Q114 Q115 € +779.4 mn € +1,191.8 mn +397 +20 -47 +204 +2 +230 +136 -5 +573 +208 +234 +18 Valore Bond Equity Balanced Money Other Valore Bond Equity Balanced Money Other Attivo mkt Attivo mkt
Slide 19: Mutual Funds Net Inflows by Product
Q1 2015 19 Mutual Funds Domestic Market Net Inflows by Product € mn Q115 Q114 Change ’Best Brands’ funds of funds (IRL) +415.1 +364.4 +14% ’Challenge’ mutual funds (IRL) -12.2 -63.7 -81% ’Fondi Italia’ mutual funds (ITA) +165.1 +515.6 -68% Other & 3rd-party funds +86.1 -7.0 n.s. DIRECT NET INFLOWS I
Slide 20: Mutual Funds Gross Inflows by Product
Q1 2015 20 Mutual Funds Domestic Market Gross Inflows by Product € mn Q115 Q114 Change ’Best Brands’ funds of funds (IRL) 1,586.4 1,004.1 +58% ’Challenge’ mutual funds (IRL) 252.0 128.6 +96% ’Fondi Italia’ mutual funds (ITA) 583.8 667.0 -12% Other & 3rd-party funds 153.3 23.3 n.s. DIRECT GROSS INFLO
Slide 21: Mutual Funds Assets by category and A.M. company
Q1 2015 21 Mutual Funds Domestic Market Assets* by category and A.M. company as at 31/03/2015 – including U-L assets Mediolanum Gamax Gestione Management Other 2% Fondi (Italy) (Luxembourg) Money 19.1% 1.6% Market 1% 3rd-party Valore 2.3% Attivo 3% Equity 51% Mediolanum Bond 38% International Funds
Slide 22: Mutual Funds Assets under Management
Q1 2015 22 Mutual Funds Domestic Market Assets under Management € mn 31/03/15 31/12/14 Change 31/03/14 Change ’Best Brands’ funds of funds (IRL) 15,375.2 13,819.0 +11% 11,932.7 +29% ’Portfolio’ funds of funds (IRL) 442.9 459.8 -4% 511.2 -13% ’Challenge’ mutual funds (IRL) 14,278.6 13,386.6 +7% 12,47
Slide 23: Mutual Funds AUM Trend
Q1 2015 23 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 39.1 35.3 29.2 23.7 19.6 20.0 15.5 15.2 15.8 14.1 11.7 10.0 11.0 8.7 9.6 8.4 7.4 5.0 3.7 4.0 3.8 3.8 4.3 1.3 1.5 1.9 2.2 0.1 0.6 0.9 1.1 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 1
Slide 24: Banking Revenues
Q1 2015 24 Banking Domestic Market Revenues € mn Q115 Q114 Change Securities trading fees 5.3 6.6 -20% o/w 3rd-party structured bonds 2.6 3.8 -31% Service fees 12.2 11.7 +4% Fee income 17.5 18.3 -4% Net Interest Income 53.2 51.9 +3% Net income on investments at fair value (6.9) (2.2) +218% o/w unrea
Slide 25: Banking Interest Spread
Q1 2015 25 Banking Domestic Market Interest Spread Q115 FY14 Total Cost of Funding 0.74% 1.07% Retail Cost of Funding 1.25% 1.63% Total Interest Income 1.67% 2.08% Retail Interest Income 2.91% 3.03% TOTAL SPREAD 0.93% 1.01% Spread on Retail 1.66% 1.39%
Slide 26: Banking Credit Quality
Q1 2015 26 Banking Domestic Market Credit Quality € mn – as at 31/03/2015 Q115 Q114 Change Mortgages 4,288 3,640 +18% Personal & Commercial Loans 911 704 +29% Lines of credit 406 398 +2% Total Loans 5,605 4,742 +18% % on total loans B.Mediolanum Italian Banks* Gross non-performing loans 1.4% 17.1% a
Slide 27: Banking Mortgage Update
Q1 2015 27 Banking Domestic Market Mortgage Update € mn Q115 FY14 Mortgage Portfolio Total Value 4,288.4 4,161.1 Average rate 2.64% 2.75% Average residual LTV 57% 56% New Business Total amount granted 209.9 907.8 Average rate 2.33% 2.85% Average amount granted 143 132 Average initial LTV 62% 59%
Slide 28: Banking Assets under Administration
Q1 2015 28 Banking Domestic Market Assets under Administration € mn 31/03/15 31/12/14 Change 31/03/14 Change Cash Deposits 11,548.8 11,379.8 +1% 10,270.2 +12% Repurchase agreements 30.4 0.4 n.s. 201.7 -85% Mediolanum bonds 263.8 272.1 -3% 422.3 -38% 3rd-party structured bonds 1,052.2 1,044.2 +1% 1,2
Slide 29: Banca Mediolanum Balance Sheet
Q1 2015 29 Banca Mediolanum Domestic Market Balance Sheet € mn – as at 31/03/2015 Liabilities Assets Retail 11,859 5,605 Treasury 11,931 17,849 o/w interbank / intra-group deposits & repos 2,496 882 o/w ECB refinancing 0 0 o/w MTS refinancing 9,435 9,718 o/w securities (bonds) 7,249 Other liabilitie
Slide 30: Mediolanum Group Bond Portfolio
Q1 2015 30 Mediolanum Group Domestic Market Bond Portfolio € mn – as at 31/03/2015 Mediolanum Group = Banca Mediolanum + Mediolanum Vita Book value AD Book Value AD Book Value AD Italian Govies 18,787 1.1 17,185 0.9 1,480 2.9 Italian Financials 941 2.0 673 1.0 250 4.6 Spanish Govies 368 1.9 325 1.7
Slide 31: Insurance Revenues
Q1 2015 31 Insurance Domestic Market Revenues € mn Q115 Q114 Change Premiums less Amounts paid & change in reserves 11.8 9.2 +28% Commission income 132.2 69.3 +91% Net Interest Income 3.1 2.9 +7% Net income on investments at fair value 3.2 1.0 +222% o/w unrealised 1.9 2.0 -3% Net financial income 6.
Slide 32: Insurance Life – Policyholders' Assets
Q1 2015 32 Insurance Domestic Market Life – Policyholders’ Assets € mn 31/03/15 31/12/14 Change 31/03/14 Change Traditional 1,269.5 1,265.2 +0% 1,269.2 +0% Index-linked 768.8 881.8 -13% 1,320.2 -42% Unit-linked pension plans 5,584.2 5,025.7 +11% 4,476.5 +25% Unit-linked endowment policies 4,195.5 3,
Slide 33: Banca Mediolanum Family Banker Network
Q1 2015 33 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount and split by average portfolio – Year 2015 +47 15% > € 20 mn 18% -45 -4 31% € 10-20 mn X% 33% 4,386 4,384 € 5-10 mn 30% 27% € 1-5 mn Turnover rate 19% (annualised) 4.5% 18% 5% X% 5% < € 1 mn Avg. 01/01 Resigned Re
Slide 34: Focus on Private Bankers
Q1 2015 34 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’* as at 31/03/2015 409 401 322 362 215 248 146 177 124 83 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 Average assets in portfolio: € 32.6 mn o/w managed assets: € 23.6 mn * 'Private Bankers' are a subset of Family Bankers
Slide 35: Banca Esperia (100%) Highlights
Q1 2015 35 Banca Esperia (100%) Domestic Market Highlights € mn Q115 Q114 Change vs.FY14 Statutory Net Income 4.8 4.8 +1% Equity contribution in Mediolanum’s P&L* (0.9) 2.6 n.s. Assets under Administration 17,958 14,960 +20% +13% % in Managed Assets 49.7% 51.5% -3% -0% Net Inflows -74 +151 n.s. o/w
Slide 36: Q1 2015 Foreign Markets Results
36 Q1 2015 Foreign Markets Results
Slide 37: Spain Highlights
Q1 2015 37 Spain Foreign Markets Highlights € mn Q115 Q114 Change vs.FY14 Net Income excluding non-recurring items 9.7 4.9 +98% Net impact of settlement of past (inherited) litigation (7.8) n.s. Net Income 1.9 4.9 -62% Managed Assets 2,075.6 1,538.8 +35% +10% Administered Assets 1,224.7 934.2 +31% +
Slide 38: Germany – Total Highlights
Q1 2015 38 Germany – Total Foreign Markets Highlights € mn Q115 Q114 Change vs.FY14 Net Income (1.1) (2.0) -44% Managed Assets 443.1 361.2 +23% +10% Administered Assets 80.6 72.9 +11% +2% Total Assets 523.7 434.1 +21% +8% Gross Inflows into Managed Assets 14.2 15.8 -10% Net Inflows into Managed Asse
Slide 39: Germany – Bankhaus August Lenz Highlights
Q1 2015 39 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn Q115 Q114 Change vs.FY14 Net Income (2.9) (2.3) +26% Managed Assets 212.7 161.6 +32% +9% Administered Assets 80.6 72.9 +11% +2% Total Assets 293.3 234.5 +25% +7% Gross Inflows into Managed Assets 11.1 13.0 -15% Net Inflows int
Slide 40: Germany – Gamax Highlights
Q1 2015 40 Germany – Gamax Foreign Markets Highlights € mn Q115 Q114 Change vs.FY14 Net Income 1.8 0.3 +461% Assets under Management 230.4 199.6 +15% +10% Gross Inflows 3.1 2.8 +12% Net Inflows -11.3 -11.4 -1%
Slide 41: Business Update
41 Business Update
Slide 42: Banca Mediolanum March 2015 Net Inflows
42 Banca Mediolanum Business Update March 2015 Net Inflows € mn Mar ‘15 2015 YTD 2014 YTD | directly into Mutual Funds +288 +654 +809 | through ‘MyLife’ U-L policy +273 +603 +8 | through other U-L policies -49 -65 -38 Mutual Funds Inflows +512 +1,192 +779 Other Life Insurance policies -49 -151 -203
Slide 43: Italian Sales Networks Ranking by Net Inflows Q1 2015
43 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group Q1 2015 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Finecobank 1.446.965 1.149.723 927.286 Banca Generali 1.141.857 1.099.155 298.103 Banca Fideuram (incl. Sanpaolo) 1.083.360 1.263.992 -1.523.7
Slide 44: Italian Sales Networks Ranking by Net Inflows FY 2014
44 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group FY 2014 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Banca Mediolanum 4,140,178 ** 4,153,558** 3,480,548 Banca Generali 4,023,691 4,188,990 554,873 Azimut 3,615,021 3,525,833 1,288,317 Unicredit
Slide 45: Net Inflows into Mutual Funds
45 Net Inflows into Mutual Funds* Business Update € mn 15000 533 600 10000 400 5000 200 0 0 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jul 08 Jul 00 Jul 01 Jul 02 Jul 03 Jul 04 Jul 05 Jul 06 Jul 07 Jul 09 Jul 10 Jul 11 Jul 12 Jul 1
Slide 46: Mutual Funds AuM Mediolanum's Market Share, Assets, Rank
46 Mutual Funds AuM Business Update Mediolanum’s Market Share , Assets , Rank 6% 45 March 2015 mkt share Intesa Sanpaolo 20.7% 40 Pioneer 11.3% 5% Generali 8.4% 35 Anima Holding 6.3% 4% 30 5 Mediolanum 5.2% Azimut 3.6% 25 F. Templeton 3.6% 3% Arca 3.4% 4 20 5 JPMorgan 3.2% 6 UBI Banca 3.1% 2% 8 15 I
Slide 47: Customer Behaviour
47 Banca Mediolanum Business Update Customer Behaviour as at 31/03/2015 914,593 primary account holders: …58% of which use Mediolanum as their primary banking institution 716,728 with a 412,805 vs. 375,316 as at 31/03/2014 (no bank account) bank account… In a 2013 survey, 39% of Mediolanum customers
Slide 48: Freedom account customers: Cross-selling into managed products
48 ’Freedom’ account customers: Business Update Cross-selling into managed products Per-capita asset growth of ‘Freedom’ account holders* Average assets (€10.3 bn in total assets as at 31/03/2015) after 71 months € 185,505 Average assets at account opening € 118,625 (64%) € 62,905 in high-margin man
Slide 49: Focus on high-remuneration deposits
49 Banca Mediolanum Business Update Focus on high-remuneration deposits € mn – as at 31/03/2015 ‘Freedom+’ balances above € 15,000 (current offer*: 1.25%) 2,555 ‘InMediolanum’ time deposits & lock-ins on current accounts (current offer*: 1.70%) 3,826 Launched May 2011 as an aggressive move to acquir
Slide 50: Mediolanum Facts
50 Mediolanum Facts
Slide 51: Mediolanum Shareholders & Group Structure
Mediolanum 51 Mediolanum Shareholders & Group Structure Facts as at 31/12/2014 BANKING Banca 100% Banco Bankhaus Mediolanum 100% Mediolanum Mediolanum August Lenz Fiduciaria ASSET MANAGEMENT Mediolanum Mediolanum Int’l Mediolanum Gamax 100% Gestione Fondi Funds Gestion S.A. Management Doris Group (d
Slide 52: Mediolanum's Integrated Business Model
Mediolanum 52 Mediolanum’s Integrated Business Model Facts We and our Family Bankers view the company as a single entity, providing solutions that best fit the needs of the customer, whether it be in the form Insurance of a mutual fund, an insurance policy or a bank product The Bank (est. 1997) has
Slide 53: Mediolanum's Multi-channel Banking Model
Mediolanum 53 Mediolanum’s Multi-channel Banking Model Facts Information Automated TV-based Telephone services (Teletext Services & Smart-TV) (VRU / SMS) Cash Entire ATM logistics Mobile apps network (all platforms) 17,400 Low- 3rd-party branches added-value Internet web site transactions CUSTOMER C
Slide 54: Model combines advantages of traditional and direct banks
Mediolanum 54 Mediolanum’s model combines the advantages Facts of traditional and direct banks Family Bankers: the human touch Self-employed tied agents with entrepreneurial Willing to provide professional advice approach anytime, anywhere Extensively trained to tackle every household financial Equa
Slide 55: Italian Household Financial Assets
Mediolanum 55 Italian Household Financial Assets Facts as at 31/12/2013 – real estate not included Network of Asset Gatherers have only 7.2% of the huge Italian 34.3% Other HH financial assets market, (e.g. cash, entrepreneurial although recognised as best-in- businesses) class in terms of personal
Slide 56: Italian Household Financial Assets Mediolanum's Market Share
Mediolanum 56 Italian Household Financial Assets Facts Mediolanum’s Market Share 1.5% 1.48% on a total of € 3,897 bn reported by Banca d’Italia 1.0% 0.5% 0% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
Slide 57: Consolidated Net Income Trend
Mediolanum 57 Consolidated Net Income Trend Facts € mn 351 337 321 233 224 224 212 217 141 131 137 129 115 103 88 82 75 67 54 60 49 38 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Q1 15 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operation
Slide 58: Dividend Payout
Mediolanum 58 Dividend Payout Facts € mn 351 Net Income 337 321 Retained Earnings Total dividends paid 153 122 233 224 224 219 212 217 88 78 66 107 110 141 131 129 115 39 21 103 88 82 50 67 199 75 46 30 184 54 60 38 9 146 146 146 132 26 34 102 110 110 114 27 69 73 73 80 81 27 34 41 50 -14 96 97 98 9
Slide 59: Banca Mediolanum Total Net Inflows Trend
Mediolanum 59 Banca Mediolanum Facts Total Net Inflows Trend € mn 7000 Net Inflows into Administered Assets 6000 5,795 Net Inflows into Managed Assets 5000 4,082 4000 3,225 3,437 3,285 3,339 3,059 3000 2,610 2000 1,805 2,280 2,258 1,546 1,544 1,689 1000 1,265 0 00 01 02 03 04 05 06 07 08 09 10 11 12
Slide 60: Italian Sales Networks Ranking by Net Inflows 2009-2014
Mediolanum 60 Italian Sales Networks Facts Ranking by Net Inflows € mn - totals by Group 6-YRS PERIOD, 2009 to 2014 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Mediolanum 21.443 12.777 15.369 Fideuram (incl. Sanpaolo Invest) 13.642 19.100 9.092 Unicredit (Fineco) 12.986 9.457 10.450 Banca
Slide 61: Banca Mediolanum Family Banker Network
Mediolanum 61 Banca Mediolanum Facts Family Banker® Network Licensed Financial Advisors 5,040 5,077 4,945 4,772 4,507 4,315 4,407 4,386 4,384 4,114 4,052 4,048 3,978 4,011 3,842 3,018 2,513 2,200 2,046 1,915 1,828 1,885 1,581 1,659 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Slide 62: Banca Mediolanum Customers
Mediolanum 62 Banca Mediolanum Facts Customers Primary account holders (‘000) 894 915 921 897 886 879 878 907 915 798 840 761 778 785 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Q1 15
Slide 63: Banca Mediolanum Bank Accounts
Mediolanum 63 Banca Mediolanum Facts Bank Accounts ’000 Since March 2005: all new customers are required to open a bank account as their first product 774 786 708 729 582 627 534 566 568 466 392 339 333 344 297 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Q1 15
Slide 64: Commission Income from Performance Fees
Q1 2015 64 Commission Income from Performance Fees Group including Unit-Linked policies Performance fees in € mn bps on average assets* 146 133 172 182 176 99 97 10-yr average 88 153 80.5 bps 155 152 76 57 63 60 52 85 83 45 45 57 62 92 50 03 04 05 06 07 08 09 10 11 12 13 14 * Calculated only on thos
Slide 65: The 'Freedom' Current Account
Mediolanum 65 The ’Freedom’ Current Account Facts launched March 2009, reengineered March 2012 Launched in the wake of the Lehman Bros. bankruptcy, exploited Mediolanum’s unique situation in terms of high liquidity & good reputation Designed to be the best account in the market for HNW individuals:
Slide 66: 'MyLife' Unit-Linked Policy
Mediolanum 66 ’MyLife’ Unit-Linked Policy Facts Insurance wrapper for mutual funds launched March 2014 Addresses all needs of HNW investors Financial planning: flexible, hassle-free diversification across all investment classes; access to 100+ funds (up to 40% picked from a selection of 3rd-party fu
Slide 67: 'MyLife' Unit-Linked Policy Pricing
Mediolanum 67 ’MyLife’ Unit-Linked Policy Facts Pricing Initial investment: € 50,000 minimum (lump-sum or through ‘Double Chance’ programmed accumulation plan) Up-front fee: 3% to 0% depending on size of investment (0% above € 1 mn) Insurance fee: 1.75% annually Management fees on underlying funds:
Slide 68: The 4th best known bank brand in Italy
Mediolanum 68 The 4th best known bank brand in Italy Facts Total brand awareness – Italian banks – 2014 47% 13% 43% 13% 9% 28% 7% 20% 5% 17% 4% source: GFK Eurisko
Slide 69: Mediolanum's advertising: most memorable in banking
Mediolanum 69 Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – 2014 14% 10% 8% 7% 4% 3% 2% 1.20% 1% 1% 0.40% source: GFK Eurisko
Slide 70: Mediolanum's Culture: Our Competitive Advantage
Mediolanum 70 Mediolanum’s Culture Facts Our Competitive Advantage Our ability to generate positive inflows also in bear markets is explained by our customer-oriented culture especially embodied in two specific areas: The Investment strategy we advocate to our customers, providing solutions accordin
Slide 71: Investment Advisory Strategy
Mediolanum 71 Investment Advisory Strategy Facts Our investment strategy explains the consistency of our inflows & transfers ‘technical performance’ into ‘customer performance’ We advise our customers proposing products & services that correspond to each of their specific needs Investor needs remain
Slide 72: The Mediolanum Approach vs. Open Architecture
Mediolanum 72 The Mediolanum Approach Facts vs. Open Architecture ‘Best Brands’ family of Funds of branded Funds unveiled in April 2008 This is not the ‘Open Architecture’ approach It is impossible for a private investor to choose among a supermarket-like offer of thousands of funds, if not on the v
Slide 73: Training & Communication: Mediolanum Corporate University
Mediolanum 73 Training & Communication: Facts Mediolanum Corporate University Inaugurated March 2009 Centralises our training know-how, in coordination with top universities, professors and individuals who are experts in the field Provides our Family Bankers & employees with a resource for life-long
Slide 74: Training & Communication: Corporate TV Channel
Mediolanum 74 Training & Communication: Facts Corporate TV Channel A proprietary state-of-the-art tool established in 1989 Encrypted programs to train, motivate & communicate with our Family Bankers Financial news commented by top company executives Company news & product information Online training
Slide 75: Marketing Events
Mediolanum 75 Marketing Events Facts 10,238 events held in 2014 (+26% vs. 2013): local & high-level events, sports events (e.g. Giro d’Italia), talk shows, etc. 430,000 participants (customers and perspective customers) per year Results are measurable: Net inflows into managed assets of invited cust
Slide 76: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 76 Ranking of Italian Banking Groups Facts by Market Capitalisation as at 24/04/2015 Intesa-SanPaolo € 48.3 bn Unicredit € 36.4 bn Mediobanca € 7.6 bn UBI € 6.4 bn Mediolanum € 5.3 bn Banco Popolare € 5.1 bn Pop. Milano € 4.2 bn Finecobank € 3.8 bn BPER € 3.7 bn Banca Generali € 3.2 bn MP
Slide 77: MED.MI Total Return Index
Mediolanum 77 MED.MI Facts Total Return Index* 1400 1200 1000 800 600 400 200 0 * includes dividend reinvestment, June 3, 1996 – April 24, 2015 source: Datastream
Slide 78: Disclaimer
78 Disclaimer This document has been prepared by Mediolanum S.p.A. for the sole purpose of providing information and presenting the Group’s strategies. The information, opinions, valuations and forecasts it contains have not been audited by any independent body; they may be altered at any time witho
Slide 79: Investor Relations contacts
79 Investor Relations contacts Alessandra Lanzone Mediolanum S.p.A. +39-02-9049.2039 Via Francesco Sforza 15 [email protected] 20080 Basiglio MI – Italy Lisa Maxon http://www.mediolanum.com +39-02-9049.2997 [email protected] Luca Mirabelli +39-02-9049.2721 luca.mirabelli@mediol