Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — FY2015 Earnings Presentation
82 slides from Banca Mediolanum SpA's earnings presentation, Feb 18, 2016
Slide 1: FY 2015 Results & Business Update
February 18, 2016 FY 2015 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
BMED 2 Table of Contents FY 2015 Results and colour key FY 2015 Group Results 3 FY 2015 Domestic Market Results 16 FY 2015 Foreign Markets Results 40 Business Update 45 Mediolanum Facts 56
Slide 3: FY 2015 Group Results
3 FY 2015 Group Results
Slide 4: Income Statement
FY 2015 4 Income Statement Group € mn FY15 FY14 Change Entry fees 102.0 98.9 +3% Management fees 815.1 672.1 +21% Performance fees 326.0 176.1 +85% Banking service fees 86.4 100.5 -14% Other fees 37.0 34.1 +8% Total commission income 1,366.4 1,081.8 +26% Net interest income 252.8 234.6 +8% Net incom
Slide 5: Net Income Trend
FY 2015 5 Net Income Trend Group € mn 439 351 337 321 233 224 224 212 217 141 131 129 115 103 88 82 75 67 49 54 60 38 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operation
Slide 6: Dividend Proposal
FY 2015 6 Dividend Proposal Group - interim dividend paid by Mediolanum S.p.A. in November 2015 16 eurocents - dividend to be paid by Banca Mediolanum S.p.A. in April 2016 14 eurocents Dividend per share 30 eurocents Total amount of dividends € 221.6 mn Dividend payout ratio (on consolidated net inc
Slide 7: Dividend Payout
FY 2015 7 Dividend Payout Group Mediolanum S.p.A. + Banca Mediolanum S.p.A. (€ mn) 439 xx Net Income Retained Earnings 351 337 Total dividends paid 321 217 233 153 122 224 212 217 224 219 88 78 66 141 107 110 129 131 115 103 39 21 88 82 50 67 199 222 75 46 30 184 54 60 38 9 146 146 146 132 26 34 102
Slide 8: Income Statement Salient Points
FY 2015 8 Income Statement Salient Points Group YoY comparison Entry fees (€ 3 mn higher YoY) growing less than the increase in gross inflows, reflecting the downward trend on these fees overall Management fees (€ 143 mn higher YoY) increased in line with the growth in average assets. The strong inf
Slide 9: Income Statement by Quarter
FY 2015 9 Income Statement by Quarter Group € mn Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Entry fees 24.5 27.4 23.8 23.3 27.8 31.3 21.9 21.0 Management fees 154.0 164.4 174.5 179.2 195.5 208.7 206.8 204.2 Performance fees 31.3 55.3 33.3 56.2 132.9 26.4 19.5 147.2 Banking service fees 22.6 28.6 20.9 2
Slide 10: Quarterly Commission Income from Mgmt Fees
FY 2015 10 Quarterly Commission Income from Mgmt Fees Group € mn 200 150 209 207 100 179 195 204 175 164 151 154 139 144 123 129 110 111 117 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 Q4 2009 2010 2011 2012 2013 2014
Slide 11: Quarterly Net Interest Income
FY 2015 11 Quarterly Net Interest Income Group € mn 90 80 70 60 50 84 40 73 75 80 75 74 72 64 65 64 63 65 30 53 60 59 58 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 Q4 2009 2010 2011 2012 2013 2014 2015
Slide 12: Quarterly Recurring Revenues
FY 2015 12 Quarterly Recurring Revenues Group Commission Income from Management Fees + Net Interest Income (€ mn) 300 250 200 150 273 270 269 257 233 239 218 216 213 222 100 177 194 186 197 199 201 203 159 164 141 149 122 121 128 111 112 111 50 106 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 13: AUA/AUM Trend
FY 2015 13 AUA/AUM Trend Group € bn Administered Assets (FY15: € 21.2 bn) 70.7 64.5 Managed Assets (FY15: € 49.5 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 5.3 5.5 6.1 2.0 2.6 3.1 4.7 0.1 0.6 0.9 1.3 1.6 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 0
Slide 14: Assets under Administration/Management
FY 2015 14 Assets under Administration/Management Group € mn 31/12/15 31/12/14 Change Mutual Funds & U-L Policies 39,820.7 35,332.8 +13% ’Freedom’ Life Policies 503.1 974.3 -48% Other Life Insurance products 1,730.9 2,147.0 -19% Banking* 15,979.4 14,578.9 +10% Italy – Banca Mediolanum 58,034.2 53,03
Slide 15: Capital Adequacy
FY 2015 15 Capital Adequacy Group € mn – as at 31/12/2015 FY15 FY14 Total Regulatory Capital Held 1,484 1,053 Total Required Capital 1,159 745 o/w Required Capital – Banks* 920 512 o/w Solvency Margin – Insurance companies 239 233 EXCESS CAPITAL 325 308 GROUP PRO-FORMA CAPITAL RATIOS Total Capital R
Slide 16: FY 2015 Domestic Market Results
16 FY 2015 Domestic Market Results
Slide 17: Income Statement
FY 2015 17 Income Statement Domestic Market € mn FY15 FY14 Change Entry fees 87.7 87.7 -0% Management fees 773.4 641.3 +21% Performance fees 306.2 167.0 +83% Banking service fees 67.1 82.0 -18% Other fees 35.4 32.8 +8% Total commission income 1,269.9 1,010.8 +26% Net interest income 232.3 210.3 +10%
Slide 18: Income Statement by Quarter
FY 2015 18 Income Statement by Quarter Domestic Market € mn Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Entry fees 22.0 24.5 20.8 20.5 24.9 27.5 18.1 17.3 Management fees 148.4 155.9 166.4 170.6 186.1 198.3 196.1 192.9 Performance fees 30.1 52.9 31.4 52.5 123.3 24.3 18.6 140.0 Banking service fees 18.3
Slide 19: Acquisition Costs in detail
FY 2015 19 Acquisition Costs in detail Domestic Market € mn FY15 FY14 Change One-time commissions 104.6 105.7 -1% Ongoing commissions 258.5 208.3 +24% Total commissions 363.1 313.9 +16% Incentives on individual net inflows 43.1 36.4 +18% Contests & bonuses 15.3 20.1 -24% Reimbursement of costs for c
Slide 20: Total Net Inflows
FY 2015 20 Total Net Inflows Domestic Market € mn FY15 FY14 Change | directly into Mutual Funds +2,840.5 +3,478.9 -18% | through ‘MyLife’ U-L policy +1,978.5 +1,540.0 +28% | through other U-L policies -131.7 -191.3 -31% Mutual Funds Inflows +4,687.4 +4,827.6 -3% Other Life Insurance policies -506.0
Slide 21: Mutual Funds Net Inflows by Category
FY 2015 21 Mutual Funds Domestic Market Net Inflows by Category € bn – including Unit-Linked policies FY14 FY15 € +4,827.6 mn € +4,687.4 mn +1,087 +835 -15 -6 +1,712 -23 -18 +875 +1,256 +2,304 +1,630 -122 Bond Valore Equity Balanced Money Other Bond Valore Equity Balanced Money Other Attivo mkt Atti
Slide 22: Mutual Funds Net Inflows by Product
FY 2015 22 Mutual Funds Domestic Market Net Inflows by Product € mn FY15 FY14 Change ’Best Brands’ funds of funds (IRL) +2,137.8 +1,211.9 +76% ’Challenge’ mutual funds (IRL) -45.8 -125.8 -64% ’Fondi Italia’ mutual funds (ITA) +358.8 +2,336.6 -85% 3rd-party stand-alone funds +458.2 +149.1 +207% Other
Slide 23: Mutual Funds Gross Inflows by Product
FY 2015 23 Mutual Funds Domestic Market Gross Inflows by Product € mn FY15 FY14 Change ’Best Brands’ funds of funds (IRL) 5,302.0 4,006.9 +32% ’Challenge’ mutual funds (IRL) 711.0 582.9 +22% ’Fondi Italia’ mutual funds (ITA) 1,678.9 3,132.0 -46% 3rd-party stand-alone funds 524.2 163.8 +220% Other 57
Slide 24: Mutual Funds Assets by category and A.M. company
FY 2015 24 Mutual Funds Domestic Market Assets* by category and A.M. company as at 31/12/2015 – including U-L assets Gamax Mediolanum Management Gestione (Luxembourg) Money Other 2% Fondi (Italy) 1.5% Market 1% 18.8% other A.M. companies Valore 4.1% Attivo 3% Equity 50% Mediolanum Bond 40% Internati
Slide 25: Mutual Funds AUM Trend
FY 2015 25 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 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 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 26: Mutual Funds Assets under Management
FY 2015 26 Mutual Funds Domestic Market Assets under Management € mn 31/12/15 31/12/14 Change ’Best Brands’ funds of funds (IRL) 16,403.4 13,819.0 +19% ’Portfolio’ funds of funds (IRL) 383.8 459.8 -17% ’Challenge’ mutual funds (IRL) 13,369.0 13,386.6 -0% Funds of Hedge Funds (IRL) 121.9 166.2 -27% ’
Slide 27: Banking Revenues
FY 2015 27 Banking Domestic Market Revenues € mn FY15 FY14 Change Securities trading fees 19.0 35.5 -46% o/w 3rd-party structured bonds 9.9 25.5 -61% Service fees 48.1 46.5 +3% Fee income 67.1 82.0 -18% Net Interest Income 220.6 198.1 +11% Net income on investments at fair value (2.2) (16.0) -86% o/
Slide 28: Banking Interest Spread
FY 2015 28 Banking Domestic Market Interest Spread FY15 FY14 Total Cost of Funding 0.66% 1.10% Retail Cost of Funding 1.09% 1.63% Total Interest Income 1.59% 2.07% Retail Interest Income 2.75% 3.03% TOTAL SPREAD 0.92% 0.96% Spread on Retail 1.66% 1.39% FY14 figures were recalculated reflecting the p
Slide 29: Banking Credit Quality
FY 2015 29 Banking Domestic Market Credit Quality € mn – as at 31/12/2015 FY15 FY14 Change Mortgages 4,757 4,161 +14% Personal & Commercial Loans 1,127 861 +31% Lines of credit 418 397 +5% Total Loans 6,302 5,419 +16% % on total loans B.Mediolanum Italian Banks* Gross non-performing loans 1.39% 17.1
Slide 30: Banking Mortgage Update
FY 2015 30 Banking Domestic Market Mortgage Update € mn FY15 FY14 Mortgage Portfolio Total Value 4,756.7 4,161.1 Average rate 2.49% 2.75% Average residual LTV 58% 56% New Business Total amount granted 1,001.0 907.8 Average rate 2.07% 2.85% Average amount granted 143 132 Average initial LTV 62% 59%
Slide 31: Banking Assets under Administration
FY 2015 31 Banking Domestic Market Assets under Administration € mn 31/12/15 31/12/14 Change Cash Deposits 12,854.8 11,379.8 +13% Repurchase agreements 0 0.4 -100% Mediolanum bonds 154.7 272.1 -43% 3rd-party structured bonds 885.4 1,044.2 -15% Other securities under custody 2,084.6 1,882.4 +11% BANK
Slide 32: Balance Sheet Highlights
FY 2015 32 Balance Sheet Highlights Domestic Market € mn – as at 31/12/2015 Liabilities Assets Retail 13,077 6,302 Treasury 9,075 15,263 o/w interbank / intra-group deposits & repos 1,342 676 o/w ECB refinancing 0 0 o/w MTS refinancing 7,733 7,578 o/w securities (bonds) 7,009 Other liabilities / ass
Slide 33: Mediolanum Group Bond Portfolio
FY 2015 33 Mediolanum Group Domestic Market Bond Portfolio € mn – as at 31/12/2015 Mediolanum Group Banca Mediolanum Mediolanum Vita Book value AD Book Value AD Book Value AD Italian Govies 16,693 1.0 15,281 0.87 1,267 3.1 Italian Financials 670 2.4 426 1.21 244 4.4 Spanish Govies 764 1.9 676 1.96 8
Slide 34: Focus on Financial Bonds
FY 2015 34 Mediolanum Group Domestic Market Focus on Financial Bonds* € mn – as at 31/12/2015 Avg Length TOTAL Covered Senior Subordinated Other to Maturity Intesa Sanpaolo 229.7 15.0 198.8 15.9 - 2.6 Unicredit 130.2 10.0 105.7 14.5 - 2.0 Monte dei Paschi di Siena 75.0 65.0 10.0 - - 2.6 Banco Popola
Slide 35: Insurance Revenues
FY 2015 35 Insurance Domestic Market Revenues € mn FY15 FY14 Change Premiums less Amounts paid & change in reserves 28.2 36.8 -23% Commission income 436.7 317.6 +37% Net Interest Income 11.8 11.9 -1% Net income on investments at fair value 0.5 6.7 -92% o/w unrealised 0.9 2.4 -60% Net financial incom
Slide 36: Insurance Life – Policyholders' Assets
FY 2015 36 Insurance Domestic Market Life – Policyholders’ Assets € mn 31/12/15 31/12/14 Change Traditional 1,326.0 1,265.2 +5% Index-linked 404.9 881.8 -54% Unit-linked pension plans 5,427.0 5,025.7 +8% Unit-linked endowment policies 3,829.8 3,896.3 -2% Unit-linked investment policies 5,790.3 3,992
Slide 37: Family Banker Network
FY 2015 37 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount and split by average portfolio – Year 2015 +172 15% 18% > € 20 mn 31% € 10-20 mn X% 33% 4,386 -156 -15 4,387 € 5-10 mn 30% 28% € 1-5 mn Turnover rate 19% (annualised) 3.9% 17% 5% X% 4% < € 1 mn Avg. 01/01 Resigned
Slide 38: Focus on 'Private Bankers'
FY 2015 38 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’* as at 31/12/2015 409 446 322 362 215 248 146 177 83 124 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Average assets in portfolio: € 31.1 mn o/w managed assets: € 22.7 mn * 'Private Bankers' are a subset of Family Bankers wh
Slide 39: Banca Esperia (100%) Highlights
FY 2015 39 Banca Esperia (100%) Domestic Market Highlights € mn FY15 FY14 Change Statutory Net Income 6.6 1.8 +264% Equity contribution in Mediolanum’s P&L* 0.1 4.2 -97% Assets under Administration/Management 17,191 15,914 +8% % in Managed Assets 51.4% 49.9% +3% Net Inflows +924 +1,259 -27% o/w Mana
Slide 40: FY 2015 Foreign Markets Results
40 FY 2015 Foreign Markets Results
Slide 41: Spain Highlights
FY 2015 41 Spain Foreign Markets Highlights € mn FY15 FY14 Change Net Income excluding non-recurring items 27.8 21.0 +32% Net impact of settlement of past (inherited) litigation (7.8) n.s. Net Income 20.0 21.0 -5% Managed Assets 2,223.0 1,887.8 +18% Administered Assets 1,323.1 1,095.3 +21% Total Ass
Slide 42: Germany – Total Highlights
FY 2015 42 Germany – Total Foreign Markets Highlights € mn FY15 FY14 Change Net Income (7.0) (8.4) -17% Managed Assets 412.9 404.6 +2% Administered Assets 92.9 79.4 +17% Total Assets 505.8 484.0 +5% Gross Inflows into Managed Assets 64.8 67.2 -4% Net Inflows into Managed Assets -20.1 -1.5 n.s. Net I
Slide 43: Germany – Bankhaus August Lenz Highlights
FY 2015 43 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn FY15 FY14 Change Net Income (11.7) (11.3) +3% Managed Assets 215.6 195.2 +10% Administered Assets 92.9 79.4 +17% Total Assets 308.5 274.6 +12% Gross Inflows into Managed Assets 50.6 59.1 -14% Net Inflows into Managed Assets +2
Slide 44: Germany – Gamax Highlights
FY 2015 44 Germany – Gamax Foreign Markets Highlights € mn FY15 FY14 Change Net Income 4.7 2.9 +61% Assets under Management 197.2 209.4 -6% Gross Inflows 14.2 8.1 +74% Net Inflows -41.2 -28.3 +46%
Slide 45: Business Update
45 Business Update
Slide 46: January 2016 Net Inflows
46 Banca Mediolanum Business Update January 2016 Net Inflows € mn Jan ‘16 Jan ‘15 | directly into Mutual Funds +101 +165 | through ‘MyLife’ U-L policy +53 +108 | through other U-L policies +26 +27 Mutual Funds Inflows +180 +299 Other Life insurance policies -27 -66 Managed Asset Inflows +153 +233 3r
Slide 47: Italian Sales Networks Ranking by Net Inflows
47 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group FY 2015 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Banca Fideuram (incl. Sanpaolo) 7,798,494 10,012,204 Finecobank 4,939,865 2,610,191 Banca Mediolanum 4,666,138 4,184,653 Banca Generali 4,639,
Slide 48: Net Inflows into Mutual Funds
48 Net Inflows into Mutual Funds* Business Update € mn 15000 600 10000 400 5000 200 0 0 Jan 05 Jan 11 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 12 Jan 13 Jan 14 Jan 15 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 Jul 13 Ju
Slide 49: Mutual Funds AUM Market Share, Assets, Rank
49 Mutual Funds AUM Business Update Mediolanum’s Market Share, Assets , Rank 6% 45 December 2015 mkt share Intesa Sanpaolo 19.7% 40 5% Pioneer 10.7% 35 Generali 8.4% Blackrock 6.3% 4% 30 Anima 6.2% 6 Mediolanum 4.7% 25 Azimut 3.5% 3% 4 20 Arca 2.9% 5 UBI Banca 2.8% 6 66 2% 15 JP Morgan 2.8% 8 F. Tem
Slide 50: Asset Management Companies Net Average Return
50 Mediolanum Asset Management Companies Business Update Net Average Return As at 31/12/2015 – NAV-weighted average on a monthly basis Net return Ranking* 1-year 1.60% 7 2-year 8.22% 5 3-year 14.63% 3 4-year 25.68% 4 5-year 18.86% 5 Since March 2009 (market low) 62.16% 1 Calculations are performed o
Slide 51: Customer Behaviour
51 Banca Mediolanum Business Update Customer Behaviour as at 31/12/2015 943,357 primary account holders: …58% of which use Mediolanum as their primary banking institution 758,213 with a 440,611 vs. 404,392 as at 31/12/2014 (no bank account) bank account… In a 2013 survey, 39% of Mediolanum customers
Slide 52: 'Freedom' account customers: Cross-selling into managed products
52 ’Freedom’ account customers: Business Update Cross-selling into managed products Average assets Per-capita asset growth of ‘Freedom’ account holders* after 80 months (€11.3 bn in total assets as at 31/12/2015) € 182,132 Average assets at account opening € 119,220 (65%) € 62,938 in high-margin man
Slide 53: Focus on high-remuneration deposits
53 Banca Mediolanum Business Update Focus on high-remuneration deposits Deposits in € mn as at 31/12/2015 – rates offered as at 02/02/2016 ‘Freedom+’ balances above € 15,000 (current offer*: 0.80%) 3,616 ‘InMediolanum’ time deposits & lock-ins on current accounts (current offer*: 1.25%) 3,152 Launch
Slide 54: Mediolanum Facts
54 Mediolanum Facts
Slide 55: BMED Shareholders & Group Structure
Mediolanum 55 BMED Shareholders & Group Structure Facts simplified - as at 31/12/2015 BANKING 100% Banco Mediolanum Bankhaus August Lenz Mediolanum Fiduciaria ASSET MANAGEMENT Mediolanum Mediolanum Mediolanum Gamax 100% Gestione Fondi Int’l Funds Gestion S.A. Management Doris Group (direct & indirec
Slide 56: Mediolanum's Integrated Business Model
Mediolanum 56 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 57: Mediolanum's Multi-channel Banking Model
Mediolanum 57 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 58: Direct Channel Access Trend
Mediolanum 58 Direct Channel Access Trend Facts millions of accesses 30 25 20 15 68% 60% 50% 10 38% 5 27% 17% 10% 6% 8% 5% 7% 5% 0 2013 2014 2015 Website Mobile Interactive Voice Responder Banking Centre Reps
Slide 59: Model combines advantages of traditional and direct banks
Mediolanum 59 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 60: Italian Household Financial Assets
Mediolanum 60 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 61: Italian Household Financial Assets Market Share
Mediolanum 61 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 62: Banca Mediolanum Total Net Inflows Trend
Mediolanum 62 Banca Mediolanum Facts Total Net Inflows Trend € mn 7000 Net Inflows into Administered Assets 6000 5,795 Net Inflows into Managed Assets 5000 4.662 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
Slide 63: Family Banker Network
Mediolanum 63 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 4,387 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 64: Banca Mediolanum Customers
Mediolanum 64 Banca Mediolanum Facts Customers Primary account holders (thousands) 915 921 907 943 894 897 886 879 878 798 840 761 778 785 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
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 841 729 774 708 582 627 534 566 568 466 392 297 339 333 344 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
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% 04 05 06 07 08 09 10 11 12 13 14 15 * including insurance commissions on U-L policies
Slide 67: Resilience of Mediolanum's Management Fees
Mediolanum 67 Resilience of Mediolanum’s Management Fees* Facts regardless of trends in equity markets worldwide 1,278 Worldwide Equity Markets (MSCI World Index) 779 Mediolanum’s Mutual funds 39.8 Assets 35.3 (€ bn) 29.2 19.6 20.0 23.7 14.1 15.5 15.2 11.7 15.8 11.0 04 05 06 07 08 09 10 11 12 13 14
Slide 68: Performance Fees History
Mediolanum 68 Performance Fees History Facts including Unit-Linked policies Commission income from performance fees in € mn 326 bps on average assets* 172 182 176 153 155 152 146 133 85 83 92 99 97 88 92 57 62 76 57 63 50 60 10-yr average 45 45 52 76.4 bps 03 04 05 06 07 08 09 10 11 12 13 14 15 * ca
Slide 69: Mediolanum's Culture: Our Competitive Advantage
Mediolanum 69 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 70: Investment Advisory Strategy
Mediolanum 70 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 71: The Mediolanum Approach vs. Open Architecture
Mediolanum 71 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 72: 'MyLife' Unit-Linked Policy
Mediolanum 72 ’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 73: The 'Freedom' Current Account
Mediolanum 73 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 74: Training & Communication: Corporate University
Mediolanum 74 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 75: Training & Communication: Corporate TV Channel
Mediolanum 75 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 76: Marketing Events
Mediolanum 76 Marketing Events Facts 8,130 events held in 2015 (-21% vs. 2014): local & high-level events, sports events (e.g. Giro d’Italia), talk shows, etc. Over 350,000 customers and prospects attending Results are measurable: Net inflows into managed assets of invited customers in the 3 months
Slide 77: The 4th best known bank brand in Italy
Mediolanum 77 The 4th best known bank brand in Italy Facts Total brand awareness – Italian banks – year 2015 45% 12% 41% 12% 9% 25% 7% 21% 6% 17% 4% source: GFK Eurisko
Slide 78: Mediolanum's advertising: most memorable in banking
Mediolanum 78 Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – year 2015 13.8% 8.2% 6.9% 6.3% 3.9% 2.0% 1.3% 1.2% 0.9% 0.6% 0.6% source: GFK Eurisko
Slide 79: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 79 Ranking of Italian Banking Groups Facts by Market Capitalisation as at 16/02/2016 Intesa-SanPaolo € 38.7 bn Unicredit € 20.4 bn Mediobanca € 5.3 bn Banca Mediolanum € 4.6 bn Finecobank € 4.0 bn UBI € 3.2 bn Pop. Milano € 3.1 bn Banco Popolare € 2.9 bn Banca Generali € 2.6 bn BPER € 2.3
Slide 80: MED.MI / BMED.MI Total Return Index
Mediolanum 80 MED.MI / BMED.MI Facts Total Return Index* 1400 1200 1000 800 600 400 200 0 * includes dividend reinvestment, June 3, 1996 – February 16, 2016 source: Datastream
Slide 81: Disclaimer
81 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 82: Investor Relations contacts
82 Investor Relations contacts Alessandra Lanzone Banca Mediolanum S.p.A. +39-02-9049.2039 Via Francesco Sforza 15 [email protected] 20080 Basiglio MI – Italy Lisa Maxon http://www.mediolanum.com http://www.bancamediolanum.it +39-02-9049.2997 [email protected] Luca Mirabelli +3