Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — FY2018 Earnings Presentation
81 slides from Banca Mediolanum SpA's earnings presentation, February 2019
Slide 1: FY 2018 Results & Business Update
February 2019 FY 2018 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
BMED 2 Table of Contents FY 2018 Results and colour key FY 2018 Group Results 3 FY 2018 Domestic Market Results 17 FY 2018 Foreign Markets Results 35 Business Update 40 Mediolanum Facts 50
Slide 3: FY 2018 Group Results
3 FY 2018 Group Results
Slide 4: 2018 Key Takeaways
FY 2018 4 2018 Key Takeaways Group Underlying resilience combatted harsh market conditions exceedingly well Net Inflows: especially into M.F. & managed assets (€ 3bn) performed at the top of the market Operating Margin: +33% - highlights our dedication towards increasing operating efficiency Net Int
Slide 5: Income Statement
FY 2018 5 Income Statement Group € mn FY18 FY17 Change Entry fees 44.6 76.9 -42% Management fees 998.4 976.1 +2% Net Insurance revenues ex U-L commissions 27.4 29.1 -6% Banking service fees 110.2 84.4 +30% Other fees 51.7 39.3 +32% Gross Commission income 1,232.3 1,205.8 +2% Acquisition costs (514.4
Slide 6: Income Statement by Quarter
FY 2018 6 Income Statement by Quarter Group € mn Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Entry fees 19.8 24.5 16.0 16.6 14.1 11.6 9.0 10.0 Management fees 233.6 242.2 246.2 254.1 250.3 250.9 253.3 243.9 Net Insurance revenues ex U-L commissions 9.4 8.2 4.5 7.1 6.3 9.4 8.4 3.4 Banking service fees 21
Slide 7: Efficiency Ratios
FY 2018 7 Efficiency Ratios Group 2016 2017 2018 2021 Sustainable growth supported by 1.00% different business lines despite Net Commission Income / challenging macro & regulatory Tot Assets 0.80% 0.84% 0.86% environment 0.60% Operating Margin trend inverted Operating Margin / thanks to operating le
Slide 8: Quarterly Commission Income from Mgmt Fees
FY 2018 8 Quarterly Commission Income from Mgmt Fees Group € mn 250 200 150 234 242246254250251253244 217223 100 195209207204201208 154 164175179 129 139144151 50 110111117123 81 86 91 94 100105105104104 59 66 72 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 2009
Slide 9: Quarterly Net Interest Income
FY 2018 9 Quarterly Net Interest Income Group € mn 90 80 70 60 50 84 40 73 75 80 75 72 74 64 65 64 63 65 62 30 53 60 59 58 59 59 61 60 60 56 46 45 47 45 49 47 49 20 41 41 44 43 41 41 36 35 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 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 10: Quarterly Recurring Revenues
FY 2018 10 Quarterly Recurring Revenues Group Commission Income from Mgmt Fees + NII (€ mn) 350 300 250 200 150 292 289 295 291 297 302 300 273 270269 262 268 277 271 279 257 239 218 216 213 222 233 100 194 186 197 199 201 203 159 164 177 141 149 122121 128 50 106 111 112111 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 11: AUA/AUM Trend
FY 2018 11 AUA/AUM Trend Group € bn 10y CAGR 11% 75.7 74.1 Administered Assets (FY18: € 20.6 bn) 68.8 Managed Assets (FY18: € 53.5 bn) 62.1 56.5 50.2 44.7 39.5 39.8 34.8 29.8 30.1 27.7 25.6 20.4 19.9 22.0 23.6 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
Slide 12: Assets under Administration/Management
FY 2018 12 Assets under Administration/Management Group € mn 31/12/18 31/12/17 Change Mutual Funds & U-L Policies 47,608.0 50,006.8 -5% ’Freedom’ Life Policies 33.4 183.8 -82% Other Life Insurance products 1,477.5 1,412.4 +5% Banking 19,526.5 18,805.4 +4% Italy – Banca Mediolanum 68,645.5 70,408.3 -
Slide 13: 2018 Net Inflows
FY 2018 13 2018 Net Inflows Group € mn 2018 2017 Managed Assets +3,044 +5,377 o/w Mutual Funds, U-L & Managed Accounts +2,961 +5,844 Administered Assets +1,076 +3 GROUP TOTAL NET INFLOWS +4,120 +5,380 Managed Assets +2,611 +4,742 o/w Mutual Funds, U-L & Managed Accounts +2,466 +5,120 Administered As
Slide 14: Capital Adequacy
FY 2018 14 Capital Adequacy Group € mn – as at 31/12/2018 FY18 FY17 GROUP CAPITAL RATIOS Total Capital Ratio 19.3% 22.0% Common Equity Tier 1 Ratio 19.2% 21.9% Total Regulatory Capital Held 1,951 2,039 Required Capital – Banks * 804 757 Solvency Capital Req. – Insurance companies** 710 701 Total Req
Slide 15: Banking Book
FY 2018 15 Banking Book Group € bn - nominal values – as at 31/12/2018 Banking Book: € 13.90 bn New Framework of treasury Sector % business model effective 1/10/2018 Government 99.3% Financial 0.7% HTC 20.1% 79.9% HTCS Limited Sensitivity to volatility of Govies % Italian govies Italy 97.1% Spain 2.
Slide 16: Dividend Proposal
FY 2018 16 Dividend Proposal Group Interim Dividend paid in November 2018 20 eurocents Dividend Balance to be paid in April 2019 20 eurocents Dividend per share 40 eurocents Total amount of dividends € 293 mn
Slide 17: FY 2018 Domestic Market Results
17 FY 2018 Domestic Market Results
Slide 18: Income Statement – Domestic Market
FY 2018 18 Income Statement Domestic Market € mn FY18 FY17 Change Entry fees 33.6 65.4 -49% Management fees 930.1 914.6 +2% Net Insurance revenues ex U-L commissions 17.3 17.0 +2% Banking service fees 85.9 60.3 +42% Other fees 49.5 37.1 +33% Gross Commission income 1,116.4 1,094.3 +2% Acquisition co
Slide 19: Income Statement by Quarter – Domestic Market
FY 2018 19 Income Statement by Quarter Domestic Market € mn Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Entry fees 16.8 21.4 13.4 13.8 10.9 8.8 6.6 7.3 Management fees 219.4 227.0 230.6 237.6 233.3 233.9 235.9 227.0 Net Insurance revenues ex U-L commissions 6.1 5.1 2.1 3.7 3.5 6.6 6.0 1.2 Banking servic
Slide 20: Acquisition Costs in detail
FY 2018 20 Acquisition Costs in detail Domestic Market € mn FY18 FY17 Change One-time commissions 60.9 76.4 -20% Ongoing commissions 322.7 316.5 +2% Total commissions 383.5 392.8 -2% Incentives on individual net inflows 42.7 58.5 -27% Contests & bonuses 11.6 18.4 -37% Reimbursement of costs for cust
Slide 21: Mutual Funds AUM Trend
FY 2018 21 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 50.0 47.6 44.2 39.8 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 0.1 0.6 0.9 1.1 1.3 1.5 1.9 2.2 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 0
Slide 22: Mutual Funds Assets under Management
FY 2018 22 Mutual Funds Domestic Market Assets under Management € mn 31/12/18 31/12/17 Change ’Best Brands’ funds of funds (IRL) 17,857.7 19,655.4 -9% ’Portfolio’ funds of funds (IRL) 0 316.7 n.s. ’Challenge’ mutual funds (IRL) 12,822.5 14,294.2 -10% Funds of Hedge Funds (IRL) 55.0 64.2 -14% ’Fondi
Slide 23: Mutual Funds Assets by A.M. company
FY 2018 23 Mutual Funds Domestic Market Assets by A.M. company as at 31/12/2018 – including U-L assets Mediolanum Gestione Fondi (Italy) 22.2% Gamax Management (Luxembourg) 1.8% other A.M. Mediolanum companies International 9.2% Funds (Ireland) 66.8%
Slide 24: Mutual Funds Assets by category
FY 2018 24 Mutual Funds Domestic Market Assets* by category as at 31/12/2018 – including U-L assets Balanced 8% Equity 44% High Yield Low Bond 40% Yield** 33% 7% Money Mkt Other 4% 3% * Flexible funds are classified according to their equivalent risk level. ** ‘Low Yield Bond’ segment includes Euro-
Slide 25: Banking Assets under Administration
FY 2018 25 Banking Domestic Market Assets under Administration € mn 31/12/18 31/12/17 Change Cash Deposits 15,842.8 15,518.1 +2% Repurchase agreements 434.4 41.4 n.s. Mediolanum bonds 44.4 80.2 -45% 3rd-party structured bonds 513.0 444.4 +15% Other securities 2,691.8 2,721.4 -1% BANKING ADMINISTERED
Slide 26: Banking Lending
FY 2018 26 Banking Domestic Market Lending € mn Nominal Interest Rate 31/12/2018 31/12/2017 Change Mortgages 1.33% 1,178 1,038 +13% Personal & Commercial Loans 2.99% 590 632 -7% Salary-backed Loans (EuroCQS) 5.72% 290 - n.a. Total 2,058 1,671 +23% 3rd-party loans n.s. 29 30 -5%
Slide 27: Banking Credit Book & Quality
FY 2018 27 Banking Domestic Market Credit Book & Quality € mn – as at 31/12/2018 31/12/18 31/12/17 Change Mortgages 6,305 5,713 +10% Personal & Commercial Loans 1,542 1,445 +7% Lines of credit 264 276 -4% Salary-backed Loans (EuroCQS) 321 6 n.s. Total Credit Book 8,432 7,441 +13% % on total loans B.
Slide 28: Banking Credit Book Growth
FY 2018 28 Banking Domestic Market Credit Book Growth € mn Steady growth & top-notch quality of Credit Book regardless of macro-economic conditions 5y CAGR 14% 8,432 7,441 1,53% 1.56% 6,855 1.43% 6,302 1,39% 1.36% 1.36% 1.39% 1.38% 5,438 4,606 3,894 0,95% 0,84% 3,049 0.77% 0.75% 0.75% 0.74% 0.81% 0.
Slide 29: Banking Interest Spread
FY 2018 29 Banking Domestic Market Interest Spread Total Book Retail Book 1,20% 2,50% 1,00% 0.97% 2,00% 0.90% 1.96% 1.87% 1.83% 0.85% 0.85% 1.81% 0,80% 0.83% 1.65% 1.63% 1.64% 0.73% 0.71% 0.74% 1,50% 1.62% 0,60% 1,00% 0,40% 0.24% 0,50% 0,20% 0.14% 0.31% 0.24% 0.10% 0.06% 0.20% 0.19% 0,00% 0,00% Q1 1
Slide 30: Balance Sheet Highlights
FY 2018 30 Balance Sheet Highlights Domestic Market € mn – as at 31/12/2018 Liabilities Assets Retail 16,384 8,111 Treasury 5,658 13,830 o/w interbank / intra-group deposits & repos 770 522 o/w ECB refinancing 0 0 o/w MTS refinancing 4,889 341 o/w securities (bonds) 12,966 Other liabilities / assets
Slide 31: Insurance Life – Policyholders' Assets
FY 2018 31 Insurance Domestic Market Life – Policyholders’ Assets € mn 31/12/18 31/12/17 Change Traditional 1,477.5 1,412.4 +5% Index-linked 0 0 n.s. Unit-linked pension plans 6,026.6 6,267.6 -4% Unit-linked endowment policies 3,373.5 3,788.0 -11% Unit-linked investment policies 9,062.9 8,353.7 +8%
Slide 32: Insurance Non-Life – Gross Premiums Written
FY 2018 32 Insurance Domestic Market Non-Life - Gross Premiums Written € mn FY18 FY17 Change New Business 6.7 5.9 +15% In-Force Business 36.9 33.4 +10% Stand-Alone Policies 43.6 39.3 +11% Loan Protection Policies 41.2 37.6 +10% NON-LIFE – GROSS PREMIUMS WRITTEN 84.8 76.8 +10%
Slide 33: Family Banker Network
FY 2018 33 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount & Split by average portfolio – Year 2018 +107 26% 26% > € 20 mn -148 -25 € 10-20 mn X% 37% 37% € 5-10 mn 4,254 4,188 24% Turnover rate 24% € 1-5 mn (annualised) 4.1% 11% 10% 2% X% 3% < € 1 mn Avg. 01/01 Resigned R
Slide 34: Focus on Private Bankers and Wealth Advisors
FY 2018 34 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’ and ‘Wealth Advisors’* as at 31/12/2018 Private Bankers (over € 25 mn AUM)Bankers Wealth Advisors Private ( > € 60 mn AUM) Wealth Advisors (over € 60 mn AUM) Average assets in portfolio 31.9 119.0 565 o/w managed assets 24.0 84.9
Slide 35: FY 2018 Foreign Markets Results
35 FY 2018 Foreign Markets Results
Slide 36: Spain Highlights
FY 2018 36 Spain Foreign Markets Highlights € mn FY18 FY17 Change Net Income 15.0 17.6 -15% Managed Assets 3,423.6 3,335.2 +3% Administered Assets 1,417.8 1,326.4 +7% Total Assets 4,841.4 4,661.6 +4% Gross Inflows into Managed Assets 1,527.6 1,372.9 +11% Net Inflows into Managed Assets +439.9 +613.5
Slide 37: Germany – Total Highlights
FY 2018 37 Germany – Total Foreign Markets Highlights € mn FY18 FY17 Change Net Income (13.4) (11.2) +20% Managed Assets 444.6 499.8 -11% Administered Assets 153.3 147.6 +4% Total Assets 597.9 647.4 -8% Gross Inflows into Managed Assets 80.5 81.3 -1% Net Inflows into Managed Assets -6.6 +21.0 n.s. N
Slide 38: Germany – Bankhaus August Lenz Highlights
FY 2018 38 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn FY18 FY17 Change Net Income (15.8) (14.6) +8% Managed Assets 269.3 290.0 -7% Administered Assets 153.3 147.6 +4% Total Assets 422.7 437.5 -3% Gross Inflows into Managed Assets 73.7 69.2 +7% Net Inflows into Managed Assets +7.9
Slide 39: Germany – Gamax Highlights
FY 2018 39 Germany – Gamax Foreign Markets Highlights € mn FY18 FY17 Change Net Income 2.3 3.4 -32% Assets under Management 175.3 209.8 -16% Gross Inflows 6.8 12.2 -44% Net Inflows -14.5 -4.2 +243%
Slide 40: Business Update
40 Business Update
Slide 41: Italian Sales Networks Ranking by Net Inflows
41 Italian Sales Networks Business Update Ranking by Net Inflows into M.F. € thousands - totals by Group 2018 Mutual Funds* Managed Assets Total Net Inflows Banca Mediolanum 2,457,523 2,460,844 3,535,506 Allianz Bank 2,076,736 2,342,623 3,412,804 Banca Generali 800,406 2,227,533 5,019,928 Azimut 422
Slide 42: Mutual Funds AUM BMED Market Share, Assets, Rank
42 Mutual Funds AUM Business Update BMED Market Share, Assets , Rank Market Share – Dec 2018 6% 50 Intesa Sanpaolo 20.4% 45 Amundi 10.6% 5% Anima 8.2% 40 Generali 8.1% 35 Blackrock 7.2% 4% 6 Mediolanum 4.5% 30 JP Morgan 3.6% 3% 4 25 UBI Banca 3.2% 5 Azimut 3.1% 6 6 20 Arca 2.8% 2% 8 9 15 Invesco 2.7
Slide 43: January 2019 Net Inflows
43 January 2019 Net Inflows Business Update € mn Jan '19 Jan ‘18 Managed Assets +172 +132 o/w Mutual Funds, U-L & Managed Accounts +152 +196 Administered Assets +61 +34 GROUP TOTAL NET INFLOWS +233 +167 Draft 31/01 Managed Assets +146 +104 o/w Mutual Funds, U-L & Managed Accounts +122 +132 Administe
Slide 44: Ireland-based Funds
44 Ireland-based Funds Business Update 1st & 2nd Quartile Positioning by Performance Significant improvement of fund performance since streamlining of product structure & strenghtening of the Dublin AM Team 70% 53% 35% 18% 0% Mar-17 May-17 Jul-17 Sept-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sept-18 No
Slide 45: Focus on Cost Transparency
45 Focus on Cost Transparency Business Update Total Expense Ratio 2019 BMED is a vertically integrated model offering advice, products, services, an advanced digital platform, high interest rates on deposits Overall TER must account for everything the customers are getting through their relationship
Slide 46: PIR – Piani Individuali di Risparmio
46 PIR – Piani Individuali di Risparmio Business Update launched March 2017 Individual Savings Plans introduced by 2017 Budget Law Mediolanum (inspired by UK ISA & French PEA) Flessibile Sviluppo Italia Tax exemptions of Capital Gains & Inheritance taxes Italy-based flexible fund, launched in 2013 •
Slide 47: Customer Behaviour
47 Banca Mediolanum Business Update Customer Behaviour as at 31/12/2018 1,067,453 primary account holders in Italy: …62% of which use Mediolanum as their primary banking institution 922,044 with a 572,215 vs. 531,655 as at 31/12/2017 (no bank account) bank account… …36% of which stated in a 2017 sur
Slide 48: Growing the 'Everyday Bank' Customer Base
48 Growing the ‘Everyday Bank’ Customer Base Business Update Direct Channel Accesses (mn) 64% of total accesses 50 64% via mobile app in 2018 45 40% of transactions 40 via mobile app in 2018 57% Draft 31/01 35 BMED app features all of the main 30 banking & investment operations 48% 25 IT Investments
Slide 49: The 'Banking 500' 2019 Report
49 The ‘Banking 500’ 2019 Report Business Update ‘Banking 500’ is the annual report analyzing the most valuable & strongest banking brands in the world 2018: BMED awarded as ‘Best Climber’ in the ranking, gaining 149 positions from rank 491 to 342 2019: BMED awarded as the ‘Fastest-growing Brand’ in
Slide 50: Mediolanum Facts
50 Mediolanum Facts
Slide 51: BMED Shareholders & Group Structure
Mediolanum 51 BMED Shareholders & Group Structure Facts as at 31/12/2018 BANKING Banco Bankhaus Mediolanum 100% Mediolanum August Lenz Fiduciaria ASSET Mediolanum Mediolanum Mediolanum MANAGEMENT Gestione Fondi International Funds Gestion S.A. 100% 100% Banca Mediolanum 92% Banca Mediolanum 100% Ban
Slide 52: Banca Mediolanum's Integrated Business Model
Mediolanum 52 Banca 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
Slide 53: Banca Mediolanum's Multi-channel Model
Mediolanum 53 Banca Mediolanum’s Multi-channel Model Facts Mobile apps (all platforms) Website Automated Telephone Services (VRU / SMS) Customer Banking Center 17,300 500 Reps 3rd-party branches Real-time sharing of customer information Entire 4,200 ATM Family network BankersTM CUSTOMER
Slide 54: Model combines advantages of traditional and direct banks
Mediolanum 54 Banca Mediolanum’s model combines Facts the advantages of traditional and direct banks Family Bankers: the human touch Self-employed tied agents with entrepreneurial approach Willing to provide advice anytime, anywhere Extensively trained to tackle every household financial need Equall
Slide 55: Italian Household Financial Assets
Mediolanum 55 Italian Household Financial Assets Facts as at 31/12/2017 – real estate not included Total HH Assets:€ 4,268 bn BMED Market Share: 1.65% 30.9% Other (e.g. cash, entrepreneurial 3.8% businesses) Insurance Agents 55.5% Traditional Banks & Post Office 9.8% Networks of Asset Gatherers Netw
Slide 56: A 'real' Bank with a Solid Set of Numbers
Mediolanum 56 A ‘real’ Bank with a Solid Set of Numbers Facts as at 31/12/2018 ROE CET1 20% 19.2% 10 Y avg. 2009- 2018 Retail Deposits Retail Credit Book € 15.8 bn € 7.9 bn % Gross NPLs % Net NPLs 1.43% 0.72% vs 11.4% Italian Banks* vs 7.5% Italian Banks* LCR NSFR 352% 165% as at 30/9/2018 * Source:
Slide 57: Net Income Trend
Mediolanum 57 Net Income Trend Facts € mn 10y CAGR 6% 439 394 380 351 337 321 256 233 224 224 212 217 141 131 129 115 103 88 82 75 67 54 60 38 49 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operati
Slide 58: Dividend Payout
Mediolanum 58 Dividend Payout Facts Mediolanum S.p.A. + Banca Mediolanum S.p.A. (€ mn) 439 xx Net Income 394 Retained Earnings 380 351 Dividends paid 337 100 321 217 86 256 233 153 122 224 217 224 219 212 88 78 66 141 107 110 129 131 294 294 293 115 103 39 21 88 50 199 222 75 46 30 82 67 184 54 60 3
Slide 59: Net Inflows Trend
Mediolanum 59 Net Inflows Trend Facts € mn A proven ability in converting administered inflows into managed assets 2011-2018: € 31.6 bn of Total Net Inflows, o/w € 29.6 bn into Mutual Funds & Unit-Linked policies 7.000 6,039 5,844 6.000 5,262 5,255 5,169 5,380 5.000 4,632 4,608 4,103 4,120 4.000 3,7
Slide 60: Total Net Inflows Trend - Italy
Mediolanum 60 Total Net Inflows Trend - Italy Facts € mn 7000 XX Total Net Inflows Net Inflows into Administered Assets 6000 5,795 5,638 Net Inflows into Managed Assets 5000 4,662 4,739 4,082 4000 3,437 3.562 3,225 3,285 3,339 3,059 3000 2,610 2,280 2,258 2000 1,805 1,689 1,544 1,546 1,265 1000 0 00
Slide 61: Family Banker Network
Mediolanum 61 Family Banker® Network Facts Group Licensed Financial Advisors 7000 Italy Spain 6000 Germany 5,681 5,555 5,395 5,247 5,054 5,105 5,158 5,190 5,216 5,203 5,232 5000 4,912 4,523 4,599 4,452 4,577 4,114 4000 3,842 3,018 3000 2,513 2,200 2,046 1,915 2000 1,828 1,885 1,581 1,659 1000 0 92 9
Slide 62: Average Assets per Family Banker
Mediolanum 62 Banca Mediolanum Facts Average Assets per Family Banker € mn 6% 16.3 16.2 14.8 26% > € 20 mn 23% 13.3 12.2 € 10-20 mn 10.9 X% 9.9 37% 31% 8.5 € 5-10 mn 32% 24% € 1-5 mn 11% 8% X% 2% < € 1 mn Avg. Avg. Portfolio 2011 2012 2013 2014 2015 2016 2017 2018 Portfolio € 8.5 mn € 16.2 mn
Slide 63: Banca Mediolanum Customers
Mediolanum 63 Banca Mediolanum Facts Customers Primary account holders (thousands) 1,068 943 987 1,032 894 915 921 897 886 879 878 907 798 840 761 778 785 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Slide 64: Average Assets per Customer
Mediolanum 64 Banca Mediolanum Facts Average Assets per Customer € thousands Primary Account Holders Primary Bank Account Holders 77.8 79.6 72.7 74.8 73.4 70.1 66.4 65.0 67.2 62.0 62.8 58.3 57.9 53.5 48.7 42.1 2011 2012 2013 2014 2015 2016 2017 2018
Slide 65: Banca Mediolanum Bank Accounts
Mediolanum 65 Banca Mediolanum Facts Bank Accounts thousands Since March 2005 all new customers are required to open a bank account as their first product 947 983 902 841 729 774 708 582 627 534 566 568 466 339 344 392 297 333 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Slide 66: Management Fees History
Mediolanum 66 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% 2.00% 1.98% 1.95% 1.87% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 * including insurance commissions on U-L policies
Slide 67: Performance Fees History
Mediolanum 67 Performance Fees History Facts € mn 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 62 50 155 147 93 172 182 176 326 236 214 140 Group Perf. fees 7 35 1 16 4 2 4 3 6 4 27 14 60 2 2 11 33 0 Other 2 2 0 0 Italy-based funds 1 0 59 50 148 136 91 137 152 159 284 219 149 138 Irel
Slide 68: Investment Advisory Strategy
Mediolanum 68 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 69: The 'Intelligent Investment Strategy' Service
Mediolanum 69 The ‘Intelligent Investment Strategy’ Service Facts launched June 2016 A long-term investment strategy (10+ yrs, € 30k+) that allows our customers to gradually enter the markets in order to take advantage of the overall growth of the world economy Designed to remove emotional barriers
Slide 70: Healthy-Margin, Low-Risk Business
70 Business Update 10 years in the Industry, acquired by Banca Mediolanum in December 2017 Operates separately with EuroCQS name to avoid brand confusion Network of 50 agents + 40 in back office. Recent agreement w/ over 250 individual distributors 3-year target: €1 bn book by EOY 2020. FY2018 Book
Slide 71: Investment Banking Division
71 Investment Banking Division Business Update opened December 2017 To assist SME entrepreneurs (both customers & prospects) with corporate finance needs in order to grow their business Financial advisory services, such as general financial health check-ups, M&A consulting, corporate sales, access t
Slide 72: Mediolanum Corporate University
Mediolanum 72 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 73: Corporate TV Channel
Mediolanum 73 Training & Communication: Facts Corporate TV Channel A proprietary state-of-the-art tool established in 1989 Online programs to train, motivate & communicate with our Family Bankers Financial news commented by top company executives Company news & product information Online training co
Slide 74: Marketing Events
Mediolanum 74 Marketing Events Facts Approximately 3,000 events held in 2018: local & high-level events, sports events (e.g. Giro d’Italia), talk shows, etc. Over 157,000 customers & prospects attending Results are measurable: Net inflows into managed assets of invited customers in the 3 months post
Slide 75: Top Performer in Customer Experience
Mediolanum 75 Top Performer in Customer Experience Facts BMED solid customer relationship built on best-in-class service delivery both human & digital Customer Satisfaction Net Promoter Score Customer Retention Overall Satisfaction 98% 67.0% 95.4% Traditional Banks: 86% | Online Banks: 96% Tradition
Slide 76: The 3rd best known bank brand in Italy
Mediolanum 76 The 3rd best known bank brand in Italy Facts Spontaneous brand awareness – Italian banks – Dec 2018 57% 25% 56% 22% 41% 18% 27% 16% 26% 11% source: GFK Eurisko
Slide 77: The most memorable advertising in banking
Mediolanum 77 Banca Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – 2018 35 21 18 14 9 8 6 4 4 4 source: GFK Eurisko
Slide 78: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 78 Ranking of Italian Banking Groups Facts by Market Capitalisation € bn - as at 31/01/2019 Intesa-SanPaolo 34.9 Unicredit 22.5 Mediobanca 6.7 FinecoBank 5.8 Banca Mediolanum 3.9 Banco-BPM 2.6 UBI 2.6 Banca Generali 2.4 CREDEM 1.7 BPER 1.4 MPS 1.4 Pop.di Sondrio 1.1 Banca IFIS 0.9 CREVAL
Slide 79: Price Return & Total Return Index
Mediolanum 79 MED.MI / BMED.MI Facts Price Return & Total Return Index* 1200% Price Return Reinvested Total Return 1000% 800% 600% 400% 200% 0% * Total Return Index includes dividend reinvestments, June 3, 1996 – Jan 31, 2019 source: Datastream
Slide 80: Disclaimer
80 Disclaimer This document has been prepared by Banca 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
Slide 81: Investor Relations contacts
81 Investor Relations contacts Alessandra Lanzone Banca Mediolanum +39-02-9049.2039 [email protected] S.p.A. Via Francesco Sforza 15 20080 Basiglio MI – Italy Lisa Maxon +39-02-9049.2997 http://www.bancamediolanum.it [email protected] Luca Pugliese +39-02-9049.2721 luca.puglies