Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — Q1 2017 Earnings Presentation
88 slides from Banca Mediolanum SpA's earnings presentation, May 9, 2017
Slide 1: Q1 2017 Results & Business Update
May 9, 2017 Q1 2017 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
BMED 2 Table of Contents Q1 2017 Results and colour key Q1 2017 Group Results 3 Q1 2017 Domestic Market Results 13 Q1 2017 Foreign Markets Results 33 Business Update 38 Mediolanum Facts 54
Slide 3: Q1 2017 Group Results
3 Q1 2017 Group Results
Slide 4: Income Statement
Q1 2017 4 Income Statement Group € mn Q117 Q116 Change Entry fees 19.8 17.6 +13% Management fees 233.6 200.5 +16% Performance fees 66.8 50.4 +32% Banking service fees 21.8 20.4 +7% Other fees 9.2 8.1 +14% Commission income 351.3 297.1 +18% Net interest income 45.0 61.6 -27% Net income on investments
Slide 5: Income Statement Salient Points
Q1 2017 5 Income Statement Salient Points Group YoY comparison Entry Fees (€ 2 mn higher YoY) reflected higher gross inflows into Mutual Funds, yet pricing still trending down Management Fees (€ 33 mn higher YoY) highest quarter ever, thanks to strong inflows & positive markets Performance Fees (€ 1
Slide 6: Income Statement by Quarter
Q1 2017 6 Income Statement by Quarter Group € mn Q116 Q216 Q316 Q416 Q117 Entry fees 17.6 17.2 17.8 18.0 19.8 Management fees 200.5 207.6 217.2 223.4 233.6 Performance fees 50.4 32.2 75.3 77.6 66.8 Banking service fees 20.4 20.2 19.7 21.1 21.8 Other fees 8.1 8.9 8.6 9.2 9.2 Commission income 297.1 2
Slide 7: Quarterly Commission Income from Mgmt Fees
Q1 2017 7 Quarterly Commission Income from Mgmt Fees Group € mn 200 150 223 234 100 209 207 204 201 208 217 195 175 179 154 164 129 139 144 151 100 105 105 104 104 110 111 117 123 50 81 86 91 94 59 66 72 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 Q
Slide 8: Quarterly Net Interest Income
Q1 2017 8 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 46 45 47 45 20 41 41 44 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 2009 2010 2011 2012 20
Slide 9: Quarterly Recurring Revenues
Q1 2017 9 Quarterly Recurring Revenues Group Commission Income from Mgmt Fees + NII (€ mn) 300 250 200 150 273 270 269 262 268 277 271 279 257 233 239 218 216 213 222 100 194 186 197 199 201 203 177 159 164 141 149 122 121 128 50 106 111 112 111 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 10: AUA/AUM Trend
Q1 2017 10 AUA/AUM Trend Group € bn 81.0 77.9 Administered Assets (Q117: € 24.6 bn) 70.7 Managed Assets (Q117: € 56.4 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 2.0 2.6 3.1 0.1 0.6 0.9 1.3 1.6 85 86 87 88 89 90 91 92 93 94 95 96 97 98
Slide 11: Assets under Administration/Management
Q1 2017 11 Assets under Administration/Management Group € mn 31/03/17 31/12/16 Change 31/03/16 Change Mutual Funds & U-L Policies 46,000.7 44,200.6 +4% 39,143.1 +18% ’Freedom’ Life Policies 236.6 233.8 +1% 437.6 -46% Other Life Insurance products 1,514.0 1,524.9 -1% 1,655.9 -9% Banking 18,972.2 18,3
Slide 12: Capital Adequacy
Q1 2017 12 Capital Adequacy Group € mn – as at 31/03/2017 – preliminary data Q117 FY16 GROUP CAPITAL RATIOS Total Capital Ratio 20.1% 20.0% Common Equity Tier 1 Ratio 20.1% 20.0% Total Regulatory Capital Held 1,909 1,884 Required Capital – Banks * 789 942 Solvency Capital Requirements – Insurance co
Slide 13: Q1 2017 Domestic Market Results
13 Q1 2017 Domestic Market Results
Slide 14: Income Statement
Q1 2017 14 Income Statement Domestic Market € mn Q117 Q116 Change Entry fees 16.8 14.3 +18% Management fees 219.4 189.5 +16% Performance fees 62.7 47.6 +32% Banking service fees 16.1 15.7 +3% Other fees 8.8 7.7 +14% Commission income 323.7 274.7 +18% Net interest income 42.5 56.9 -25% Net income on
Slide 15: Income Statement by Quarter
Q1 2017 15 Income Statement by Quarter Domestic Market € mn Q116 Q216 Q316 Q416 Q117 Entry fees 14.3 14.4 15.4 15.2 16.8 Management fees 189.5 195.8 204.6 210.2 219.4 Performance fees 47.6 30.6 71.2 73.8 62.7 Banking service fees 15.7 15.0 13.9 14.9 16.1 Other fees 7.7 8.3 8.2 8.8 8.8 Commission inc
Slide 16: Acquisition Costs in detail
Q1 2017 16 Acquisition Costs in detail Domestic Market € mn Q117 Q116 Change One-time commissions 19.5 18.4 +6% Ongoing commissions 76.0 63.7 +19% Total commissions 95.5 82.0 +16% Incentives on individual net inflows 9.8 7.1 +37% Contests & bonuses 2.8 2.3 +21% Reimbursement of costs for customer ev
Slide 17: Total Net Inflows
Q1 2017 17 Total Net Inflows Domestic Market € mn Q117 Q116 Change directly into Mutual Funds +763.1 +391.1 +95% through ‘MyLife’ U-L policy +208.8 +145.5 +44% through other U-L policies +4.9 +67.6 -93% Mutual Funds Inflows +976.8 +604.2 +62% Other Life Insurance policies -37.4 -93.3 -60% Managed As
Slide 18: Mutual Funds Net Inflows by Product
Q1 2017 18 Mutual Funds Domestic Market Net Inflows by Product € mn Q117 Q116 Change ’Best Brands’ funds of funds (IRL) +239.6 +309.2 -23% ’Challenge’ mutual funds (IRL) -76.0 +17.8 n.s. ’Fondi Italia’ mutual funds (ITA) +316.2 +16.6 n.s. 3rd-party stand-alone funds +272.2 +49.5 +450% Other +11.1 -2
Slide 19: Mutual Funds Gross Inflows by Product
Q1 2017 19 Mutual Funds Domestic Market Gross Inflows by Product € mn Q117 Q116 Change ’Best Brands’ funds of funds (IRL) 1,079.4 753.9 +43% ’Challenge’ mutual funds (IRL) 106.5 137.3 -22% ’Fondi Italia’ mutual funds (ITA) 763.5 277.2 +175% 3rd-party stand-alone funds 348.4 69.4 +402% Other 28.6 7.6
Slide 20: Mutual Funds AUM Trend
Q1 2017 20 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 46.0 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 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
Slide 21: Mutual Funds Assets under Management
Q1 2017 21 Mutual Funds Domestic Market Assets under Management € mn 31/03/17 31/12/16 Change 31/03/16 Change ’Best Brands’ funds of funds (IRL) 19,346.6 18,643.4 +4% 16,257.8 +19% ’Portfolio’ funds of funds (IRL) 345.3 370.0 -7% 365.0 -5% ’Challenge’ mutual funds (IRL) 14,347.2 14,137.0 +1% 12,893.
Slide 22: Mutual Funds Assets by A.M. company
Q1 2017 22 Mutual Funds Domestic Market Assets by A.M. company as at 31/03/2017 – including U-L assets Mediolanum Gestione Fondi (Italy) 18.3% Gamax Management (Luxembourg) Mediolanum 1.4% International Funds (Ireland) other A.M. 74.1% companies 6.2%
Slide 23: Mutual Funds Assets by category
Q1 2017 23 Mutual Funds Domestic Market Assets* by category as at 31/03/2017 – including U-L assets Balanced 6% Equity 48% Low Yield** High 6% Bond 39% Yield 33% Money Mkt 3% Valore Other 1% Attivo 2% * Flexible funds are classified according to their equivalent risk level ** ‘Low Yield Bond’ segmen
Slide 24: Banking Assets under Administration
Q1 2017 24 Banking Domestic Market Assets under Administration € mn 31/03/17 31/12/16 Change 31/03/16 Change Cash Deposits 15,636.8 15,541.1 +1% 14,040.9 +11% Repurchase agreements 22.5 0 n.s. 30.2 -26% Mediolanum bonds 103.7 115.3 -10% 140.5 -26% 3rd-party structured bonds 554.5 642.7 -14% 816.1 -3
Slide 25: Banking Interest Spread
Q1 2017 25 Banking Domestic Market Interest Spread Q117 Q416 Total Cost of Funding 0.37% 0.44% Retail Cost of Funding 0.38% 0.52% Total Interest Income 1.19% 1.30% Retail Interest Income 2.16% 2.21% TOTAL SPREAD 0.82% 0.86% Spread on Retail 1.78% 1.69%
Slide 26: Balance Sheet Highlights
Q1 2017 26 Balance Sheet Highlights Domestic Market € mn – as at 31/03/2017 Liabilities Assets Retail 15,829 6,908 Treasury 3,719 12,979 o/w interbank / intra-group deposits & repos 1,398 584 o/w ECB refinancing 0 0 o/w MTS refinancing 2,320 354 o/w securities (bonds) 12,042 Other liabilities / asse
Slide 27: Banking Credit Quality
Q1 2017 27 Banking Domestic Market Credit Quality € mn – as at 31/03/2017 31/03/17 31/12/16 Change 31/03/16 Change Mortgages 5,271 5,210 +1% 4,838 +9% Personal & Commercial Loans 1,274 1,267 +1% 1,144 +11% Lines of credit 363 378 -4% 417 -13% Total Loans 6,908 6,855 +1% 6,399 +8% % on total loans B.
Slide 28: Banking Mortgage Update
Q1 2017 28 Banking Domestic Market Mortgage Update € mn Q117 FY16 Q116 Mortgage Portfolio Total Value 5,271 5,210 4,838 Average rate 1.91% 2.08% 2.27% Average initial LTV 57% 57% 58% New Business Total amount granted 206 991 217 Average rate 1.42% 1.52% 1.73% Average amount granted 136 142 143 Avera
Slide 29: Mediolanum Group Bond Portfolio
Q1 2017 29 Mediolanum Group Domestic Market Bond Portfolio € mn – as at 31/03/2017 Mediolanum Group Banca Mediolanum Mediolanum Vita Book value AD Book Value AD Book Value AD Italian Govies 13,772 1.07 12,672 0.85 955 3.97 Italian Financials 409 2.93 185 1.89 217 3.86 Spanish Govies 615 1.40 600 1.3
Slide 30: Insurance Life – Policyholders' Assets
Q1 2017 30 Insurance Domestic Market Life – Policyholders’ Assets € mn 31/03/17 31/12/16 Change 31/03/16 Change Traditional 1,363.8 1,346.6 +1% 1,315.7 +4% Index-linked 150.2 178.3 -16% 340.2 -56% Unit-linked pension plans 6,059.3 5,936.8 +2% 5,265.1 +15% Unit-linked endowment policies 3,862.4 3,830
Slide 31: Banca Mediolanum Family Banker Network
Q1 2017 31 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount & Split by average portfolio – Year 2017 +41 > € 20 mn 22% -35 -2 24% € 10-20 mn X% 36% 36% 4,326 4,330 € 5-10 mn 26% 25% € 1-5 mn Turnover rate (annualised) 3.4% 13% 12% 3% X% 3% < € 1 mn Avg. 01/01 Resigned Reti
Slide 32: Focus on 'Private Bankers'
Q1 2017 32 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’* as at 31/03/2017 446 455 462 409 362 322 215 248 146 177 124 83 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017 Average assets in portfolio: € 36.2 mn o/w managed assets: € 26.3 mn * 'Private Bankers' are a subset
Slide 33: Q1 2017 Foreign Markets Results
33 Q1 2017 Foreign Markets Results
Slide 34: Spain Highlights
Q1 2017 34 Spain Foreign Markets Highlights € mn Q117 Q116 Change vs.FY16 Net Income 3.8 5.4 -29% Managed Assets 2,866.4 2,236.9 +28% +8% Administered Assets 1,235.4 1,246.0 -1% +0% Total Assets 4,101.8 3,482.9 +18% +6% Gross Inflows into Managed Assets 350.4 229.2 +53% Net Inflows into Managed Asse
Slide 35: Germany – Total Highlights
Q1 2017 35 Germany – Total Foreign Markets Highlights € mn Q117 Q116 Change vs.FY16 Net Income (2.4) (3.3) -27% Managed Assets 463.0 403.9 +15% +4% Administered Assets 141.9 96.5 +47% -3% Total Assets 605.0 500.5 +21% +2% Gross Inflows into Managed Assets 15.9 16.4 -3% Net Inflows into Managed Asset
Slide 36: Germany – Bankhaus August Lenz Highlights
Q1 2017 36 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn Q117 Q116 Change vs.FY16 Net Income (3.2) (3.6) -13% Managed Assets 263.2 221.2 +19% +4% Administered Assets 141.9 96.5 +47% -3% Total Assets 405.2 317.7 +28% +1% Gross Inflows into Managed Assets 14.3 15.2 -6% Net Inflows int
Slide 37: Germany – Gamax Highlights
Q1 2017 37 Germany – Gamax Foreign Markets Highlights € mn Q117 Q116 Change vs.FY16 Net Income 0.7 0.3 +130% Assets under Management 199.8 182.7 +9% +5% Gross Inflows 1.6 1.2 +41% Net Inflows -2.3 -3.2 -29%
Slide 38: Business Update
38 Business Update
Slide 39: April 2017 Net Inflows
39 Banca Mediolanum Business Update April 2017 Net Inflows € mn Apr'17 YTD ‘17 YTD ‘16 Managed Assets +494 +1,353 +724 o/w Mutual Funds, U-L & Managed Accounts +558 +1,535 +897 Administered Assets -54 +120 +1,499 Italy – Banca Mediolanum Total Net Inflows +439 +1,474 +2,223 Managed Assets +50 +208 +
Slide 40: Italian Sales Networks Ranking by Net Inflows
40 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group Jan-Mar 2017 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Banca Fideuram (incl. Sanpaolo) 2,213,625 3,347,326 2,094,440 Banca Generali 1,839,449 1,559,675 652,082 Allianz Bank 1,289,333 1,037,472
Slide 41: Italian Sales Networks Ranking by Net Inflows
41 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group 2016 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Banca Fideuram (incl. Sanpaolo) 7,801,425 2,563,184 858,741 Banca Generali 5,677,429 3,966,945 1,914,658 Banca Mediolanum 5,641,108 3,334,936 3,6
Slide 42: Net Inflows into Mutual Funds
42 Net Inflows into Mutual Funds* Business Update € mn 15000 600 10000 400 5000 200 0 0 Jan 02 Jan 17 Jan 00 Jan 01 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 Jan 16 Jul 10 Jul 00 Jul 01 Jul 02 Jul 03 Jul 04 Jul 05 Jul 06 Jul 07 Jul 08 Jul 09 Jul 11 Ju
Slide 43: Mutual Funds AUM BMED Market Share, Assets, Rank
43 Mutual Funds AUM Business Update BMED Market Share, Assets , Rank Market Share - Mar. 2017 6% 45 Intesa Sanpaolo 19.9% Pioneer 9.4% 40 5% Generali 7.7% 35 Blackrock 6.4% Anima 6.4% 4% 30 6 Mediolanum 4.8% Azimut 3.5% 25 3% 4 UBI Banca 3.2% 5 20 JP Morgan 3.1% 6 6 Amundi 2.9% 2% 8 15 9 Arca 2.9% 1
Slide 44: Mediolanum Asset Management Companies Net Average Return
44 Mediolanum Asset Management Companies Business Update Net Average Return As at 28/02/2017 – NAV-weighted average on a monthly basis Net return Ranking* Year-to-date 2.17% 2 1-year 10.77% 2 2-year 0.66% 7 3-year 13.61% 2 4-year 18.22% 2 5-year 25.40% 2 Since March 2009 (market low) 71.43% 2 Calcul
Slide 45: Customer Behaviour
45 Banca Mediolanum Business Update Customer Behaviour as at 31/12/2016 999,046 primary account holders: …59% of which use Mediolanum as their primary banking institution 830,955 with a 493,655 vs. 479,140 as at 31/12/2016 (no bank account) bank account… In a 2015 survey, 39% of Mediolanum customers
Slide 46: Direct Channel Accesses
46 Banca Mediolanum Business Update Direct Channel Accesses 30 millions of accesses 25 20 15 60% 48% 68% 50% 42% 10 38% 5 27% 55% 17% 37% 10% 8% 5% 7% 5% 6% 5% 6% 4% 4% 0 2013 2014 2015 2016 2017 Website Mobile Interactive Voice Responder Banking Centre Reps
Slide 47: Cross-selling into managed products
47 Banca Mediolanum Business Update Cross-selling into managed products Per-capita asset growth of ‘Freedom’ account holders* Average assets (€13.2 bn in total assets as at 31/03/2017) after 96 months € 190,019 Average assets at account opening € 63,463 € 140,585 (74%) in high-margin managed assets
Slide 48: PIR – Piani Individuali di Risparmio
48 PIR – Piani Individuali di Risparmio Business Update launched March 2017 Individual Saving Plans introduced by 2017 Budget Law (inspired by UK ISA & French PEA) Exemptions on Capital Gains & Inheritance Tax (Tax exemptions begin only after 5 years of investments) Tax exemptions up to € 30k invest
Slide 49: Asset & Wealth Management
49 Asset & Wealth Management Business Update designed for our fastest-growing customer segment 2008 2016 HNW Customers (€ 2+ mn) 146 1,153 AUM (€ mn) 730 6,066 a full range of services to meet the needs of the most demanding customers Wealth Planning: optimisation of financial resources, structuring
Slide 50: Asset & Wealth Management: network of partners
50 Asset & Wealth Management Business Update a network of best-in-class partners Asset Protection; Generational Handover; Optimisation of Financial Resources Corporate & Business Advisory Real Estate Consultancy Art Advisory Trust Advisory
Slide 51: 'My Style' Managed Account
51 ‘My Style’ Managed Account Business Update launched January 2017 Managed account designed for HNW individuals (min. investment € 250k) Invests in Mediolanum funds, 3° party funds, securities & ETFs Allows for a high level of flexibility, diversification and multiple investment styles & strategies
Slide 52: Focus on high-remuneration deposits
52 Banca Mediolanum Business Update Focus on high-remuneration deposits Deposits in € mn as at 31/03/2017 – rates offered as at 01/04/2017 ‘Freedom+’ balances above € 15,000 (current offer*: 0.05% to 0.70% according to cluster) 6,034 ‘InMediolanum’ time deposits & lock-ins on current accounts (curre
Slide 53: Banking Book Plan 2017
53 Banking Book Plan 2017 Business Update € mn – as at 30/04/2017 Maturing Purchase Plan Maturing 2017 2017 2018E 4,494 3,346 951 2,032 3,543 6,081 1,314 9,963 11,110 Actual Yield Est. Actual Yield 0.85% 0.40% 31/12/2016 31/12/2017 Jan-Apr 2017 May-Dec 2017
Slide 54: Mediolanum Facts
54 Mediolanum Facts
Slide 55: BMED Shareholders & Group Structure
Mediolanum 55 BMED Shareholders & Group Structure Facts as at 31/12/2016 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 56: Banca Mediolanum's Integrated Business Model
Mediolanum 56 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 57: Banca Mediolanum's Multi-channel Model
Mediolanum 57 Banca Mediolanum’s Multi-channel Model Facts Mobile apps (all platforms) TV-based services (Smart TV) Website Automated Telephone Services (VRU / SMS) Customer Banking Center 17,000 500 Reps 3rd-party branches Real-time sharing of customer information Entire 4,300 ATM Family network CU
Slide 58: Model combines advantages of traditional and direct banks
Mediolanum 58 Banca Mediolanum’s model combines Facts the advantages 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 financia
Slide 59: Italian Household Financial Assets
Mediolanum 59 Italian Household Financial Assets Facts as at 30/09/2016 – real estate not included Network of Asset Gatherers have only 9% of the huge Italian 29.3% Other (e.g. cash, HH financial assets market, entrepreneurial although recognised as best-in- businesses) class in terms of personal se
Slide 60: Banca Mediolanum's Market Share
Mediolanum 60 Italian Household Financial Assets Facts Banca Mediolanum’s Market Share 1.85% 1.5% on a total of € 4,012 bn reported by Banca d’Italia as at 30/09/2016 1.0% 0.5% 0% 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Slide 61: A 'real' Bank with a Solid Set of Numbers
Mediolanum 61 A ‘real’ Bank with a Solid Set of Numbers Facts as at 31/03/2017 ROE CET1 20.9% 20.1% 10 Y avg. 2007- 2016 Retail Deposits Retail Credit Book € 15.8 bn € 6.9 bn % Gross NPLs % Net NPLs 1.53% 0.81% vs 16.2% Italian Banks* vs 9.4% Italian Banks* * Source: Bank of Italy – Statistical Bull
Slide 62: Net Income Trend
Mediolanum 62 Net Income Trend Facts € mn 10y CAGR 6.5% 439 394 351 337 321 233 224 224 212 217 141 131 129 115 103 88 82 85 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 16 Q1 17 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operation
Slide 63: Dividend Payout
Mediolanum 63 Dividend Payout Facts Mediolanum S.p.A. + Banca Mediolanum S.p.A. (€ mn) 439 xx Net Income 394 Retained Earnings 351 Dividends paid 337 100 321 217 233 153 122 74 224 212 217 224 219 88 78 66 141 107 110 129 131 115 103 39 21 88 82 50 67 199 222 221 75 46 30 184 54 60 38 9 146 146 146
Slide 64: AUA/AUM Trend
Mediolanum 64 AUA/AUM Trend Facts € bn 5y CAGR 14.0% 81.0 77.9 Administered Assets (Q117: € 24.6 bn) 70.7 Managed Assets (Q117: € 56.4 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 2.0 2.6 3.1 0.1 0.6 0.9 1.3 1.6 85 86 87 88 89 90 91 92 9
Slide 65: Total Net Inflows Trend
Mediolanum 65 Banca Mediolanum Facts Total Net Inflows Trend € mn 7000 Net Inflows into Administered Assets 6000 5,795 Net Inflows into Managed Assets 5y CAGR 25.4% 5,638 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
Slide 66: Family Banker Network
Mediolanum 66 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 4,326 4,330 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
Slide 67: Average Assets per Family Banker
Mediolanum 67 Banca Mediolanum Facts Average Assets per Family Banker® € mn 14.8 13.3 12.2 10.9 9.9 8.5 2011 2012 2013 2014 2015 2016
Slide 68: Family Banker Network: Split by Average Assets
Mediolanum 68 Banca Mediolanum Facts Family Banker® Network: Split by Average Assets 11.1% > € 20 mn 22.1% 28.4% 57.7% € 10-20 mn 35.6% € 5-10 mn 30.5% € 1-5 mn 26.5% 21.5% < € 1 mn 12.9% 8.5% 3.0% Dec. 2013 Dec. 2016
Slide 69: Customers
Mediolanum 69 Banca Mediolanum Facts Customers Primary account holders (thousands) 987 999 894 915 921 897 907 943 840 886 879 878 761 778 785 798 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Q1 17
Slide 70: Average Assets per Customer
Mediolanum 70 Banca Mediolanum Facts Average Assets per Customer € thousands Primary Account Holders Primary Bank Account Holders 74.8 77.8 70.1 72.7 66.4 65.0 62.0 58.3 57.9 53.5 48.7 42.1 2011 2012 2013 2014 2015 2016
Slide 71: Bank Accounts
Mediolanum 71 Banca Mediolanum Facts Bank Accounts thousands Since March 2005 all new customers are required to open a bank account as their first product 902 920 841 729 774 708 582 627 534 566 568 466 344 392 297 339 333 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Q1 17
Slide 72: Management Fees History
Mediolanum 72 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% 04 05 06 07 08 09 10 11 12 13 14 15 16 * including insurance commissions on U-L policies
Slide 73: Performance Fees History
Mediolanum 73 Performance Fees History Facts including Unit-Linked policies Commission income from performance fees - € mn 326 bps on average assets* 236 172 182 176 80 5-yr average 74 65 65.2 bps 52 55 12 13 14 15 16 * calculated on group average assets
Slide 74: Mediolanum's Culture: Our Competitive Advantage
Mediolanum 74 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 75: Investment Advisory Strategy
Mediolanum 75 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 76: The Mediolanum approach vs. Open Architecture
Mediolanum 76 The Mediolanum approach vs. Open Architecture Facts ‘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 77: The 'Intelligent Investment Strategy' Service
Mediolanum 77 The ‘Intelligent Investment Strategy’ Service Facts launched June 2016 A long-term investment strategy (10+ yrs, € 30k+) that allows our customers to gradually enter equity markets in order to take advantage of the overall growth of the world economy Designed to remove emotional barrie
Slide 78: 'MyLife' Unit-Linked Policy
Mediolanum 78 ’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 79: The 'Freedom' Current Account
Mediolanum 79 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 80: Training & Communication: Corporate University
Mediolanum 80 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 81: Training & Communication: Corporate TV Channel
Mediolanum 81 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 82: Marketing Events
Mediolanum 82 Marketing Events Facts Approximately 5,700 events held in 2016: local & high-level events, sports events (e.g. Giro d’Italia), talk shows, etc. Over 234,000 customers & prospects attending Results are measurable: Net inflows into managed assets of invited customers in the 3 months post
Slide 83: The 3rd best-known bank brand in Italy
Mediolanum 83 The 3rd best-known bank brand in Italy Facts Spontaneous brand awareness – Italian banks – Mar. 2017 50% 23% 48% 21% 39% 15% 29% 14% 25% 10% source: GFK Eurisko
Slide 84: Banca Mediolanum's advertising
Mediolanum 84 Banca Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – Jan-Mar 2017 24 16 13 11 8 5 5 3 2 2 source: GFK Eurisko
Slide 85: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 85 Ranking of Italian Banking Groups Facts by Market Capitalisation € bn - as at 02/05/2017 Intesa-SanPaolo 44.8 Unicredit 33.7 Mediobanca 7.8 Banca Mediolanum 5.2 Banco-BPM 4.1 FinecoBank 4.0 UBI 3.9 Banca Generali 3.1 BPER 2.4 CREDEM 2.1 Banca IFIS 2.1 Pop.di Sondrio 1.6 CREVAL 0.4 Banc
Slide 86: MED.MI / BMED.MI Price Return & Total Return Index
Mediolanum 86 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 reinvestment, June 3, 1996 – May 2, 2017 source: Datastream
Slide 87: Disclaimer
87 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 88: Investor Relations contacts
88 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