Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — Mediolanum — 9M 2015 Earnings Presentation
84 slides from Banca Mediolanum SpA's earnings presentation, Nov 5, 2015
Slide 1: 9M 2015 Results & Business Update
November 5, 2015 9M 2015 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
Mediolanum 2 Table of Contents 9M 2015 Results and colour key 9M 2015 Group Results 3 9M 2015 Domestic Market Results 14 9M 2015 Foreign Markets Results 37 Business Update 42 Mediolanum Facts 55
Slide 3: 9M 2015 Group Results
3 9M 2015 Group Results
Slide 4: Income Statement Group
9M 2015 4 Income Statement Group € mn 9M15 9M14 Change Entry fees 80.0 74.0 +8% Management fees 611.9 494.6 +24% Performance fees 178.8 119.9 +49% Banking service fees 65.3 72.2 -10% Other fees 28.1 25.4 +11% Total commission income 964.0 786.1 +23% Net interest income 187.5 174.5 +7% Net income on
Slide 5: Interim Dividend information
9M 2015 5 Interim Dividend information Group Interim Dividend per share 16 eurocents Total amount of dividends € 118 mn Ex-dividend date November 23 Payment date November 25
Slide 6: Income Statement Salient Points
9M 2015 6 Income Statement Salient Points Group YoY comparison Entry fees (€ 6 mn higher YoY) reflected the higher gross inflows, offsetting the downward trend resulting from the increase in average investment size Management fees (€ 117 mn higher YoY) continued at a very high level thanks to our su
Slide 7: Income Statement by Quarter
9M 2015 7 Income Statement by Quarter Group € mn Q114 Q214 Q314 Q414 Q115 Q215 Q315 Entry fees 24.1 26.7 23.2 22.9 27.6 30.9 21.5 Management fees 154.5 165.0 175.1 179.5 195.7 209.0 207.1 Performance fees 31.3 55.3 33.3 56.2 132.9 26.4 19.5 Banking service fees 22.6 28.6 20.9 28.3 22.1 21.0 22.1 Oth
Slide 8: Quarterly Commission Income from Mgmt Fees
9M 2015 8 Quarterly Commission Income from Mgmt Fees Group € mn 200 150 209 207 100 180 196 175 165 151 154 139 144 123 129 110 111 117 50 81 86 91 94 100 105 105 104 104 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 Q2 Q3 2009 2010 2011 2012 2013 2014 2015 19
Slide 9: Quarterly Net Interest Income
9M 2015 9 Quarterly Net Interest Income Group € mn 90 80 70 60 50 84 40 73 75 80 75 74 72 64 65 64 63 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 Q2 Q3 2009 2010 2011 2012 2013 2014 2015
Slide 10: Quarterly Recurring Revenues
9M 2015 10 Quarterly Recurring Revenues Group Commission Income from Management Fees + Net Interest Income (€ mn) 300 250 200 150 273 270 257 234 239 218 216 213 222 100 177 194 186 197 199 201 203 159 164 141 149 122 121 128 111 112 111 50 106 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 11: AUA Trend
9M 2015 11 AUA Trend Group € bn Administered Assets (9M15: € 20.1 bn) 67.0 Managed Assets (9M15: € 46.9 bn) 64.5 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 12: Assets under Administration
9M 2015 12 Assets under Administration Group € mn 30/09/15 31/12/14 Change 30/09/14 Change Mutual Funds & U-L Policies 37,456.9 35,332.8 +6% 33,765.1 +11% ’Freedom’ Life Policies 573.1 974.3 -41% 1,095.3 -48% Other Life Insurance products 1,869.9 2,147.0 -13% 2,277.8 -18% Banking* 14,968.7 14,578.9
Slide 13: Capital Adequacy
9M 2015 13 Capital Adequacy Group € mn – as at 30/09/2015 9M15 FY14 Total Regulatory Capital Held 1,134 1,053 Total Required Capital 769 745 o/w Required Capital – Banks 539 512 o/w Solvency Margin – Insurance companies 230 233 EXCESS CAPITAL 365 308 CAPITAL RATIOS* (Mediolanum Banking Group) Total
Slide 14: 9M 2015 Domestic Market Results
14 9M 2015 Domestic Market Results
Slide 15: Income Statement Domestic Market
9M 2015 15 Income Statement Domestic Market € mn 9M15 9M14 Change Entry fees 70.4 67.2 +5% Management fees 580.5 470.7 +23% Performance fees 166.2 114.4 +45% Banking service fees 51.2 58.8 -13% Other fees 27.0 24.3 +11% Total commission income 895.3 735.4 +22% Net interest income 172.6 156.5 +10% Ne
Slide 16: Income Statement by Quarter
9M 2015 16 Income Statement by Quarter Domestic Market € mn Q114 Q214 Q314 Q414 Q115 Q215 Q315 Entry fees 22.0 24.5 20.8 20.5 24.9 27.5 18.1 Management fees 148.4 155.9 166.4 170.6 186.1 198.3 196.1 Performance fees 30.1 52.9 31.4 52.5 123.3 24.3 18.6 Banking service fees 18.3 24.1 16.4 23.2 17.5 16
Slide 17: Acquisition Costs in detail
9M 2015 17 Acquisition Costs in detail Domestic Market € mn 9M15 9M14 Change One-time commissions 81.2 78.1 +4% Ongoing commissions 190.4 153.0 +25% Total commissions 271.6 231.1 +18% Incentives on individual net inflows 31.2 22.1 +41% Contests & bonuses 10.3 13.1 -21% Reimbursement of costs for cus
Slide 18: Total Net Inflows
9M 2015 18 Total Net Inflows Domestic Market € mn 9M15 9M14 Change | directly into Mutual Funds +2,211.9 +2,766.2 -20% | through ‘MyLife’ U-L policy +1,699.1 +913.2 +86% | through other U-L policies -151.7 -179.4 -15% Mutual Funds Inflows +3,759.3 +3,500.0 +7% Other Life Insurance policies -347.8 -5
Slide 19: Mutual Funds Net Inflows by Category
9M 2015 19 Mutual Funds Domestic Market Net Inflows by Category € bn – including Unit-Linked policies 9M14 9M15 € +3,500.0 mn € +3,759.3 mn +769 +741 -35 -9 -16 -8 +1,264 +541 +1,063 +1,836 +1,181 -66 Bond Valore Equity Balanced Money Other Bond Valore Equity Balanced Money Other Attivo mkt Attivo m
Slide 20: Mutual Funds Net Inflows by Product
9M 2015 20 Mutual Funds Domestic Market Net Inflows by Product € mn 9M15 9M14 Change ’Best Brands’ funds of funds (IRL) +1,712.0 +945.1 +81% ’Challenge’ mutual funds (IRL) -46.5 -118.9 -61% ’Fondi Italia’ mutual funds (ITA) +223.0 +1,937.4 -88% 3rd-party stand-alone funds +380.1 +74.3 +411% Other -5
Slide 21: Mutual Funds Gross Inflows by Product
9M 2015 21 Mutual Funds Domestic Market Gross Inflows by Product € mn 9M15 9M14 Change ’Best Brands’ funds of funds (IRL) 4,349.9 2,940.9 +48% ’Challenge’ mutual funds (IRL) 574.1 413.3 +39% ’Fondi Italia’ mutual funds (ITA) 1,292.9 2,488.7 -48% 3rd-party stand-alone funds 429.4 82.1 +423% Other 52.
Slide 22: Mutual Funds Assets by category and A.M. company
9M 2015 22 Mutual Funds Domestic Market Assets* by category and A.M. company as at 30/09/2015 – including U-L assets Gamax Mediolanum Management Gestione (Luxembourg) Money Other 2% Fondi (Italy) 1.6% Market 1% 19.3% other A.M. companies Valore 3.9% Attivo 3% Equity 48% Mediolanum Bond 41% Internati
Slide 23: Mutual Funds Assets under Management
9M 2015 23 Mutual Funds Domestic Market Assets under Management € mn 30/09/15 31/12/14 Change 30/09/14 Change ’Best Brands’ funds of funds (IRL) 15,363.7 13,819.0 +11% 13,181.6 +17% ’Portfolio’ funds of funds (IRL) 375.8 459.8 -18% 469.6 -20% ’Challenge’ mutual funds (IRL) 12,475.1 13,386.6 -7% 13,0
Slide 24: Mutual Funds AUM Trend
9M 2015 24 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 37.5 35.3 29.2 23.7 19.6 20.0 15.5 15.2 15.8 14.1 11.0 11.7 9.6 10.0 8.7 8.4 7.4 5.0 3.7 4.0 3.8 3.8 4.3 1.1 1.3 1.5 1.9 2.2 0.1 0.6 0.9 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 25: Banking Revenues
9M 2015 25 Banking Domestic Market Revenues € mn 9M15 9M14 Change Securities trading fees 15.2 25.6 -41% o/w 3rd-party structured bonds 7.8 17.7 -56% Service fees 36.0 33.2 +9% Fee income 51.2 58.8 -13% Net Interest Income 165.8 151.7 +9% Net income on investments at fair value (2.3) (7.0) -67% o/w
Slide 26: Banking Interest Spread
9M 2015 26 Banking Domestic Market Interest Spread 9M15 FY14 Total Cost of Funding 0.68% 1.07% Retail Cost of Funding 1.13% 1.63% Total Interest Income 1.62% 2.08% Retail Interest Income 2.80% 3.03% TOTAL SPREAD 0.94% 1.01% Spread on Retail 1.66% 1.39%
Slide 27: Banking Credit Quality
9M 2015 27 Banking Domestic Market Credit Quality € mn – as at 30/09/2015 9M15 9M14 Change Mortgages 4,544 3,974 +14% Personal & Commercial Loans 1,057 782 +35% Lines of credit 416 403 +3% Total Loans 6,017 5,159 +17% % on total loans B.Mediolanum Italian Banks* Gross non-performing loans 1.4% 17.5%
Slide 28: Banking Mortgage Update
9M 2015 28 Banking Domestic Market Mortgage Update € mn 9M15 9M14 FY14 Mortgage Portfolio Total Value 4,543.6 3,973.7 4,161.1 Average rate 2.54% 2.80% 2.75% Average residual LTV 58% 55% 56% New Business Total amount granted 668.9 650.6 907.8 Average rate 2.20% 3.00% 2.85% Average amount granted 143
Slide 29: Banking Assets under Administration
9M 2015 29 Banking Domestic Market Assets under Administration € mn 30/09/15 31/12/14 Change 30/09/14 Change Cash Deposits 11,941.4 11,379.8 +5% 11,161.1 +7% Repurchase agreements 22.0 0.4 n.s. 123.1 -82% Mediolanum bonds 171.2 272.1 -37% 337.3 -49% 3rd-party structured bonds 1,011.9 1,044.2 -3% 1,0
Slide 30: Banca Mediolanum Balance Sheet
9M 2015 30 Banca Mediolanum Domestic Market Balance Sheet € mn – as at 30/09/2015 Liabilities Assets Retail 12,206 6,017 Treasury 11,321 17,035 o/w interbank / intra-group deposits & repos 1,949 1,149 o/w ECB refinancing 0 0 o/w MTS refinancing 9,372 9,185 o/w securities (bonds) 6,701 Other liabilit
Slide 31: Mediolanum Group Bond Portfolio
9M 2015 31 Mediolanum Group Domestic Market Bond Portfolio € mn – as at 30/09/2015 Mediolanum Group Banca Mediolanum Mediolanum Vita Book value AD Book Value AD Book Value AD Italian Govies 17,831 1.0 16,403 0.8 1,286 2.9 Italian Financials 869 1.9 615 1.0 240 4.4 Spanish Govies 745 2.0 702 1.9 41 3
Slide 32: Insurance Revenues
9M 2015 32 Insurance Domestic Market Revenues € mn 9M15 9M14 Change Premiums less Amounts paid & change in reserves 23.3 27.9 -16% Commission income 316.8 226.4 +40% Net Interest Income 8.5 9.4 -9% Net income on investments at fair value (0.1) 5.2 n.s. o/w unrealised 0.3 2.2 -87% Net financial incom
Slide 33: Insurance Life – Policyholders' Assets
9M 2015 33 Insurance Domestic Market Life – Policyholders’ Assets € mn 30/09/15 31/12/14 Change 30/09/14 Change Traditional 1,293.4 1,265.2 +2% 1,241.9 +4% Index-linked 576.6 881.8 -35% 1,035.9 -44% Unit-linked pension plans 5,023.0 5,025.7 -0% 4,836.5 +4% Unit-linked endowment policies 3,643.1 3,89
Slide 34: Banca Mediolanum Family Banker Network
9M 2015 34 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount and split by average portfolio – Year 2015 +131 15% 16% > € 20 mn 31% € 10-20 mn X% 32% -114 -10 4,386 4,393 € 5-10 mn 30% 29% € 1-5 mn Turnover rate 19% (annualised) 3.8% 18% 5% X% 5% < € 1 mn Avg. 01/01 Resigned
Slide 35: Focus on 'Private Bankers'
9M 2015 35 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’* as at 30/09/2015 409 423 322 362 215 248 146 177 124 83 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 2015 Average assets in portfolio: € 30.2 mn o/w managed assets: € 22.3 mn * 'Private Bankers' are a subset of Family Bankers
Slide 36: Banca Esperia (100%) Highlights
9M 2015 36 Banca Esperia (100%) Domestic Market Highlights € mn 9M15 9M14 Change vs.FY14 Statutory Net Income 5.4 8.7 -38% Equity contribution in Mediolanum’s P&L* (0.5) 4.5 n.s. Assets under Administration 16,624 15,938 +4% +4% % in Managed Assets 49.4% 48.6% +2% -1% Net Inflows +329 +852 -61% o/w
Slide 37: 9M 2015 Foreign Markets Results
37 9M 2015 Foreign Markets Results
Slide 38: Spain Highlights
9M 2015 38 Spain Foreign Markets Highlights € mn 9M15 9M14 Change vs.FY14 Net Income excluding non-recurring items 18.8 15.2 +24% Net impact of settlement of past (inherited) litigation (7.8) n.s. Net Income 11.0 15.2 -28% Managed Assets 2,050.7 1,796.6 +14% +9% Administered Assets 1,251.5 999.6 +25
Slide 39: Germany – Total Highlights
9M 2015 39 Germany – Total Foreign Markets Highlights € mn 9M15 9M14 Change vs.FY14 Net Income (5.6) (6.3) -11% Managed Assets 392.9 383.7 +2% -3% Administered Assets 83.7 85.3 -2% +5% Total Assets 476.6 469.0 +2% -2% Gross Inflows into Managed Assets 50.3 50.5 -0% Net Inflows into Managed Assets -1
Slide 40: Germany – Bankhaus August Lenz Highlights
9M 2015 40 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn 9M15 9M14 Change vs.FY14 Net Income (9.4) (7.5) +25% Managed Assets 201.2 180.6 +11% +3% Administered Assets 83.7 85.3 -2% +5% Total Assets 284.9 265.9 +7% +4% Gross Inflows into Managed Assets 37.3 43.2 -14% Net Inflows into
Slide 41: Germany – Gamax Highlights
9M 2015 41 Germany – Gamax Foreign Markets Highlights € mn 9M15 9M14 Change vs.FY14 Net Income 3.8 1.2 +209% Assets under Management 191.7 203.1 -6% -8% Gross Inflows 13.0 7.3 +79% Net Inflows -29.9 -25.4 +18%
Slide 42: Business Update
42 Business Update
Slide 43: September 2015 Net Inflows
43 Banca Mediolanum Business Update September 2015 Net Inflows € mn Sept ‘15 2015 YTD 2014 YTD | directly into Mutual Funds +183 +2,212 +2,766 | through ‘MyLife’ U-L policy +85 +1,699 +913 | through other U-L policies +10 -151 -179 Mutual Funds Inflows +278 +3,759 +3,500 Other Life Insurance policie
Slide 44: Italian Sales Networks Ranking by Net Inflows
44 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group January to September 2015 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Finecobank 3,403,177 1,887,174 1,399,578 Azimut 3,072,799 2,625,256 1,091,223 Banca Mediolanum 3,017,363 ** 3,413,838** 2,20
Slide 45: Italian Sales Networks Ranking by Net Inflows
45 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 46: Net Inflows into Mutual Funds
46 Net Inflows into Mutual Funds* Business Update € mn 15000 600 10000 400 5000 200 0 0 Jan 04 Jan 00 Jan 01 Jan 02 Jan 03 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jul 13 Jul 00 Jul 01 Jul 02 Jul 03 Jul 04 Jul 05 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10 Jul 11 Jul 12 Ju
Slide 47: Mutual Funds AuM Mediolanum's Market Share, Assets, Rank
47 Mutual Funds AuM Business Update Mediolanum’s Market Share , Assets , Rank 6% 45 September 2015 mkt share Intesa Sanpaolo 20.9% 40 Pioneer 11.4% 5% Generali 8.8% 35 Anima Holding 6.5% 4% 30 5 Mediolanum 4.8% Azimut 3.6% 25 Arca 3.1% 3% UBI Banca 3.1% 4 20 5 JPMorgan 2.9% 6 F. Templeton 2.9% 2% 8
Slide 48: Asset Management Companies Net Average Return
48 Mediolanum Asset Management Companies Current Issues Net Average Return As at 30/09/2015 – NAV-weighted average on a monthly basis Net return Ranking* Year-to-date -1.24% 13 1-year -0.19% 10 2-year 8.04% 6 3-year 12.45% 6 4-year 28.81% 2 5-year 21.59% 2 Since March 2009 (market low) 57.63% 1 Calc
Slide 49: Addressing the 'Performance Fees Issue'
49 Addressing the ‘Performance Fees Issue’ Current Issues Backtesting Results What group performance fees would have been applying the rules currently used for Italy-based funds to all funds 250 247 Actual performance fees (bps*) Average: 76 bps 200 Recalculated performance fees (bps*) Average: 88 b
Slide 50: Customer Behaviour
50 Banca Mediolanum Business Update Customer Behaviour as at 30/09/2015 930,204 primary account holders: …58% of which use Mediolanum as their primary banking institution 739,736 with a 426,269 vs. 393,573 as at 30/09/2014 (no bank account) bank account… In a 2013 survey, 39% of Mediolanum customers
Slide 51: 'Freedom' account customers: Cross-selling into managed products
51 ’Freedom’ account customers: Business Update Cross-selling into managed products Average assets Per-capita asset growth of ‘Freedom’ account holders* after 77 months (€10.5 bn in total assets as at 30/09/2015) € 178,622 Average assets at account opening € 114,884 (64%) € 62,921 in high-margin man
Slide 52: Focus on high-remuneration deposits
52 Banca Mediolanum Business Update Focus on high-remuneration deposits Deposits in € mn as at 30/09/2015 – rates offered as at 01/10/2015 ‘Freedom+’ balances above € 15,000 (current offer*: 1.00%) 3,001 ‘InMediolanum’ time deposits & lock-ins on current accounts (current offer*: 1.25%) 3,341 Launch
Slide 53: The 4th best known bank brand in Italy
Mediolanum 53 The 4th best known bank brand in Italy Facts Total brand awareness – Italian banks – Jan-Sept 2015 46% 13% 41% 12% 9% 25% 6% 20% 5% 18% 4% source: GFK Eurisko
Slide 54: Mediolanum's advertising: the most memorable in banking
Mediolanum 54 Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – Jan-Sept 2015 13.9% 8.5% 7.3% 6.6% 3.5% 2.1% 1.6% 1,20% 1.1% 0.5% 0,40% source: GFK Eurisko
Slide 55: Mediolanum Facts
55 Mediolanum Facts
Slide 56: Mediolanum Shareholders & Group Structure
Mediolanum 56 Mediolanum Shareholders & Group Structure Facts as at 30/06/2015 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 57: Mediolanum's Integrated Business Model
Mediolanum 57 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 58: Mediolanum's Multi-channel Banking Model
Mediolanum 58 Mediolanum’s Multi-channel Banking Model Facts TV-based services Mobile apps (all platforms) (Teletext & Smart-TV) Website Automated Telephone Services (VRU / SMS) Customer Banking Center 17,400 500 Reps 3rd-party branches Real-time sharing of customer information Entire 4,400 ATM Fami
Slide 59: Direct Channel Access Trend
Mediolanum 59 Direct Channel Access Trend Facts January to September, millions of accesses 20 18 16 14 12 10 69% 61% 51% 8 6 37% 4 25% 2 16% 10% 6% 8% 6% 7% 5% 0 2013 2014 2015 Website Mobile Interactive Voice Responder Banking Centre Reps
Slide 60: Model combines advantages of traditional and direct banks
Mediolanum 60 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 61: Italian Household Financial Assets
Mediolanum 61 Italian Household Financial Assets Facts as at 31/12/2014 – real estate not included Network of Asset Gatherers have only 8% of the huge Italian 32.5% Other (e.g. cash, HH financial assets market, entrepreneurial although recognised as best-in- businesses) class in terms of personal se
Slide 62: Mediolanum's Market Share of Household Assets
Mediolanum 62 Italian Household Financial Assets Facts Mediolanum’s Market Share 1.55% 1.5% on a total of € 3,934 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 14
Slide 63: Consolidated Net Income Trend
Mediolanum 63 Consolidated Net Income Trend Facts € mn 351 337 321 311 233 224 224 212 217 141 131 129 115 103 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 9M 15 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operation
Slide 64: Dividend Payout
Mediolanum 64 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 65: Banca Mediolanum Total Net Inflows
Mediolanum 65 Banca Mediolanum Facts Total Net Inflows € 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 13 14
Slide 66: Italian Sales Networks Ranking by Net Inflows
Mediolanum 66 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 67: Family Banker Network
Mediolanum 67 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 4,393 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 68: Banca Mediolanum Customers
Mediolanum 68 Banca Mediolanum Facts Customers Primary account holders (thousands) 894 915 921 897 886 907 930 840 879 878 761 778 785 798 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 9M 15
Slide 69: Banca Mediolanum Bank Accounts
Mediolanum 69 Banca Mediolanum Facts Bank Accounts thousands Since March 2005: all new customers are required to open a bank account as their first product 774 817 708 729 582 627 534 566 568 466 344 392 297 339 333 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 9M 15
Slide 70: Management Fees History
Mediolanum 70 Management Fees* History Facts expressed as a % of average managed assets in the period 1.98% 2.00% 2.02% 2.02% 1.96% 1.94% 1.98% 2.00% 2.00% 2.02% 1.99% 2.01% 04 05 06 07 08 09 10 11 12 13 14 9M 15 * including insurance commissions on U-L policies
Slide 71: Resilience of Mediolanum's Management Fees
Mediolanum 71 Resilience of Mediolanum’s Management Fees* Facts regardless of trends in equity markets worldwide 1,276 Worldwide Equity Markets (MSCI World Index) 779 Mediolanum’s 35.3 Mutual Assets funds (€ bn) 11.0 04 05 06 07 08 09 10 11 12 13 14 1.98% 2.00% 2.02% 2.02% 1.96% 1.94% 1.98% 2.00% 2.
Slide 72: Performance Fees History
Mediolanum 72 Performance Fees History Facts including Unit-Linked policies Commission income from 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 o
Slide 73: Mediolanum's Culture: Our Competitive Advantage
Mediolanum 73 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 74: Investment Advisory Strategy
Mediolanum 74 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 75: The Mediolanum Approach vs. Open Architecture
Mediolanum 75 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 76: 'MyLife' Unit-Linked Policy
Mediolanum 76 ’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 77: The 'Freedom' Current Account
Mediolanum 77 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 78: Training & Communication: Mediolanum Corporate University
Mediolanum 78 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 79: Training & Communication: Corporate TV Channel
Mediolanum 79 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 80: Marketing Events
Mediolanum 80 Marketing Events Facts 5,515 events held in the first nine months of 2015 (-14% vs. 2014): local & high-level events, sports events (e.g. Giro d’Italia), talk shows, etc. 259,317 participants (customers and perspective customers) per year Results are measurable: Net inflows into manage
Slide 81: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 81 Ranking of Italian Banking Groups Facts by Market Capitalisation as at 30/10/2015 Intesa-SanPaolo € 50.2 bn Unicredit € 35.1 bn Mediobanca € 7.9 bn UBI € 6.1 bn Mediolanum € 5.5 bn Banco Popolare € 4.9 bn MPS € 4.9 bn Finecobank € 4.2 bn Pop. Milano € 3.8 bn BPER € 3.5 bn Banca General
Slide 82: MED.MI Total Return Index
Mediolanum 82 MED.MI Facts Total Return Index* 1400 1200 1000 800 600 400 200 0 * includes dividend reinvestment, June 3, 1996 – October 30, 2015 source: Datastream
Slide 83: Disclaimer
83 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 84: Investor Relations contacts
84 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