Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — Mediolanum Group — Q1 2003 Earnings Presentation
30 slides from Banca Mediolanum SpA's earnings presentation, 2003
Slide 1: Mediolanum Group
Mediolanum Group
Slide 2: Positive & consistent net inflows into mutual funds
Ennio Doris Chiat tixecubiye Orrigar 45S I =< Se o aa Positive & consistent Net Inflows into Mutual Funds* means better customer performance oon + * including Managed Accounts & Unit-linked policies Source: Assogestioni
Slide 3: Net Inflows into Equity Mutual Funds
Net Inflows into Equity Mutual Funds* differentiates Mediolanum from competition 00) + 4008 200 +- + 208 a4 ‘ _— ' a Mar, Jun Sep Dec Mar in ep Mar 200 “Jan Jan 2008 001 2002 201 400 + 4008 my e===e= Total ltalianindustry |“ Mediolanum ES 00] + S080 on + + 0088 * including Managed Accounts & Unit-li
Slide 4: Q1 2003 Reclassified Results Agenda
Qi 2003 Reclassified Results Agenda Consolidated Results | Core Business Results Core Business Results Naw Verturos mosubes
Slide 5: Consolidated Results
Con si - sail i Qi 2003 Reclassified Results Mediolanum Group
Slide 6: Consolidated Net Profit
Consolidated Net Profit Euro million @7 2003 Total Revenues 494.4 Profit before Tax & E.I. 30.7 Extraordinary Items -3.7 Profit before Tax 27.0 Income Tax -8.9 Profit from Minority Interests 0.0 CONSOLIDATED NEw) PROFIT 1674 Consolidated P & Lin detail Euro million 31.03.03 Net Premiums Written Comm
Slide 7: Consolidated Net Inflows
Consolidated Net Inflows yt Consolidated Euro million Qi 2003 7 2002 Change Managed Savings 600.4 640.6 Administered Savings 46.8 387.1 -87.9% TOTAL NET INFLOWS 64772 1,027.7 =379,0%/6 Consolidated AUA Breakdown pt A Consolidated Euro million 39,03)03 “3035.04 iange Life Reserves 6,779.3 6,989.1 -3.
Slide 8: Core Business
Core Business ie ai Hb. Qi 2003 Reclassified Results Mediolanum Group
Slide 9: AUA Breakdown
AUA Breakdown Euro million Life Reserves 6,779.3 6,989.1 Mutual Funds & M.A 8,256.4 10,165.9 Institutional Assets 165.7 406.9 Consolidation Adjustments -2,917.9 -3,406.2 Managed Savings Assets 12,283.5 14,155.7 Bank Deposits 4,978.8 4,688.5 Administ. Savings Assets 4,978.8 4,688.5 Life Reserves = 4
Slide 10: Mutual Fund & Managed Accounts Assets
Mutual Fund & Managed Accounts Assets i Core Business > Equity Funds 829.8 1,283.8 -35.4% >» Bond Funds 374.2 439.6 -14.9% » Monetary Funds 296.2 211.1 +40.3% Italy-based Funds-Unbundled 1,500.2 1,934.5 -22.5% > Equity Funds 3,722.8 5,055.0 -26.4% > Protected Funds 79.7 117.7 -32.3% >» Bond & Moneta
Slide 11: Net Inflows
Net Inflows a_i Euro million > Mutual Funds & M.A. > Life Policies Managed Savings > Securities >» Cash > Repurchase Agreements Administered Savings Gross Premiums Written Euro million > U-L Pension Plans (Europension) 8.9 > U-L Pension Plans (My Pension") 17.3 > U-L Investment Pol. (Life Funds) 6.0
Slide 12: Adjusted Premium Income
Adjusted Premium Income -_ Core Business Recurring Policies A 32.6 Single Premium Policies x1/10 19.8 * Annual Premium Equivalent Gross Inflows into Mutual Funds* Core Business Euro million » Equity Funds 38.9 49.0 -20.6% > Bond Funds 23.1 16.5 +40.0% >» Monetary Funds 94.2 28.5 +230.5% Italy-based
Slide 13: Bank Accounts & Customer Growth
Bank Accounts & Customer Growth i Core Business 335,134 > 18.3% 763,500 > +4.6% Marketing Sponsorship: Giro d'Italia = 3 Core Business A Marketing campaign designed to resume: yY > the acquisition of customers > the growth in the number of bank accounts The Giro will be viewed by over 35 million TV
Slide 14: Sales Network
Sales Network ie Core Business » Licensed Financial Advisors » Non-licensed Financial Advisors Banca Mediolanum* * o/w Financial Executives Partner Time Sales Network Evolution = 4 Core Business © Non-licensed Advisors __) Licensed Financial Advisors 1995 1996 1997 1998 1999 2000 2001 2002
Slide 15: Net Profit
Net Profit -_ 3 Core Business Euro million Total Revenues Profit before Tax & E.1. Extraordinary Items Profit before Tax i : +6.6% Income Tax F . +21.8% ound Profit Before Tax & E.I. by business line Euro million Life Mutual Other Insurance Funds Bank Operations +11. 2 Y4%-————~
Slide 16: Profit from Life business line
Profit from Life business line Euro million Life Insurance i 24.3 a ... caused by write-down necessitated by the depreciation of some assets in the traditional reserves... Net Investment Income Euro million Investment Income - Life 18.6 Adjustments to the value of financial invest. (write-downs) -5.
Slide 17: Evolution of Life Reserves Composition
Evolution of Life Reserves Composition Euro billion > Traditional reserves sensitive CE ie cy to low interest rates in decline 2.6 " 4 r 12 174 72 > Traditional reserves modestly affected by writedowns > Guarantees relate only to traditional reserves, i.e. 20% of Life assets > Unit & Index-linked do
Slide 18: Commission Income
Commission Income i from Mutual Fund-related products OT Euro million Entry Fees ' -22.7% Management Fees , A -13.3%* Performance Fees Commission Income from Mutual Funds age by Location Core Business| ™@ Italy-based funds 16.1% oa a Mgmt Fees ~~” Entry Rass Entry Fees 6% 6.3% Fees 11.746 Mgmt Fees
Slide 19: Profit from Bank business line
Profit from Bank business line Euro million Life Insurance Mutual Funds Bank Business (excl. Adv. Investments) Other Operations Bank Revenues Euro million Interest Spread 15.4 » Securities 3.8 » Managed Accounts servicefees 5.8 » Other Services 5.5 Service Margin 15.1 = -11.5% -22.3% 1.0 +1,250.0% O
Slide 20: Benefits Paid & Change in Reserves
Benefits Paid & Change in Reserves - 3 85.0 48.5 46.1 +44.1% -22.8% -65.0% > Claims & Maturities > Natural Surrenders > Surrenders from Transformation Benefits Paid 179.6 -29.1% Change in Reserves (less Policyholders' interest) 166.2 257.5 -35.5% ound Surrenders * Euro Million Natural Surrenders of
Slide 21: Surrenders of Investments Policies
Surrenders of Investments Policies Euro million Natural Surrenders of Trad. Invest. Policies % of Reserves Transformation Surrenders of Trad. Invest. Pol. * Total Surrenders of Traditional Invest. Pol. % of Reserves 154.2 32.7% Total Surrenders of Unit-linked Investment Policies % of Reserves Total
Slide 22: Costs
wosts mi Core Business Claims, Benefits paid, Changes in Reserves 345.8 -32.3% Recov. from Reinsurance -2.2 H -59.3% Acquisition Costs (Commission Expense) 40.3 -21.4% G&A Expenses 40.6 +10.6% Advertising Expenses 0.3 : -76.9% Depreciation 10.4 I +5.1% out Ennio Doris
Slide 23: New Ventures
New Ventures Qi 2003 Reclassified Results Mediolanum Group
Slide 24: New Ventures - Net Profit
New Ventures - Net Profit Euro million Spain Germany Banca Esperia Med Private * share of Profit pertaining to the Mediolanum Group Euro million Net Profit / Loss* Goodwill Amortisation Interest paid on Investments * share of Profit pertaining to the Mediolanum Group
Slide 25: Banca Esperia - Net Profit
Banca Esperia - Net Profit Euro million Total Revenues 4 1.7 +135.3% Total Costs * share of Profit pertaining to the Mediolanum Group Banca Esperia - Highlights Cyias Haoa ____ Assets under Administration | 2,579 1,284 % in Managed Assets 78.7% 90.0% 680 405 454 282 252 30 13 = BANCAESPERIA LA PRIVA
Slide 26: Spain - Net Profit
Spain - Net Profit me Euro million Total Revenues +3.8% Operating Costs +7.8% Start up costs é d +60.0% Net Operating Profit/Loss +166.7% Write-downs ; ; na. Capital gain/loss é +850.0% Extraordinary Items . -50.0% Profit before Tax E -250.0% Income Tax ; li n.a. Profit from Minority Interests : na.
Slide 27: Spain - Gross Inflows
Spain - Gross Inflows Euro million > Mutual Funds & M.A. > Life Policies Managed Savings > Securities > Cash Administered Savings Spain - Net Inflows Euro million > Mutual Funds & M.A. > Life Policies Managed Savings > Securities > Cash Administered Savings — +41.9% +157.1% +52.0% +382.4% -352.0% +3
Slide 28: Spain - Net Effect
Spain - Net Effect Euro million Net Operating Profit * Goodwill Depreciation Interests paid on Investments * share of Profit pertaining to the Mediolanum Group Spain - AUA Breakdown Euro million Life & Pension Funds 55.2 56.5 -2.3% Mutual Funds 692.5 784.4 -11.7% Bank Deposits 1,155.2 1,260.5 -8.4%
Slide 29: Gamax - Net Profit
Gamax - Net Profit om te Euro millio Total Revenues | -40.0% Operating Costs i -25.7% Start up costs L ! ns. Net Operating Profit/Loss : -140.0% Write-downs ' ! n.s. Capital gain/loss ! ; ns. Extraordinary Items L ; ns. Profit before Tax : ! ns. Income Tax L ! ns. Profit from Minority Interests ! ns
Slide 30: Germany Highlights and Closing Comments
Germany Highlights - Bankhaus A. ten @9 roe) -1.8 Euro million ows, 1.4 Euro million > 65 advisors Customers > 545 v > Full range of banking products by year-end 2003 >» Focus on recruiting independent advisors from Gamax with substantial portfolios to become exclusive advisors of Lenz 54 Closing Co