Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — FY2016 Earnings Presentation
90 slides from Banca Mediolanum SpA's earnings presentation, March 2017
Slide 1: FY 2016 Results & Business Update
March 2017 FY 2016 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
BMED 2 Table of Contents FY 2016 Results and colour key FY 2016 Group Results 3 FY 2016 Domestic Market Results 14 FY 2016 Foreign Markets Results 37 Business Update 42 Mediolanum Facts 55
Slide 3: FY 2016 Group Results
3 FY 2016 Group Results
Slide 4: Income Statement Group
FY 2016 4 Income Statement Group € mn FY16 FY15 Change Entry fees 70.5 102.0 -31% Management fees 848.8 815.0 +4% Performance fees 235.6 326.0 -28% Banking service fees 81.4 86.4 -6% Other fees 34.7 37.0 -6% Total commission income 1,271.0 1,366.3 -7% Net interest income 228.8 252.8 -10% Net income
Slide 5: Dividend Proposal
FY 2016 5 Dividend Proposal Group - interim dividend paid in November 2016 16 eurocents - dividend to be paid in April 2017 24 eurocents Dividend per share 30 eurocents Extra dividend per share 10 eurocents Total amount of dividends € 294 mn
Slide 6: Income Statement Salient Points
FY 2016 6 Income Statement Salient Points Group YoY comparison Entry Fees (€ 31 mn lower YoY) reflected lower gross inflows into Mutual Funds & greater percentage of HNW customers with waived entry fees Management Fees (€ 34 mn higher YoY) benefitted from solid contribution in Q3 & Q4 (highest 2 qua
Slide 7: Income Statement by Quarter
FY 2016 7 Income Statement by Quarter Group € mn Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Entry fees 27.8 31.3 21.9 21.0 17.6 17.2 17.8 18.0 Management fees 195.5 208.7 206.8 204.1 200.5 207.6 217.2 223.4 Performance fees 132.9 26.4 19.5 147.2 50.4 32.2 75.3 77.6 Banking service fees 22.1 21.0 22.1 2
Slide 8: Quarterly Commission Income from Mgmt Fees
FY 2016 8 Quarterly Commission Income from Mgmt Fees Group € mn 200 150 223 100 209 207 204 201 208 217 195 175 179 151 154 164 129 139 144 117 123 50 100 105 105 104 104 110 111 81 86 91 94 72 59 66 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 20
Slide 9: Quarterly Net Interest Income
FY 2016 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 46 45 47 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 2009 2010 2011 2012 2013 201
Slide 10: Quarterly Recurring Revenues
FY 2016 10 Quarterly Recurring Revenues Group Commission Income from Management Fees + Net Interest Income (€ mn) 300 250 200 150 273 270 269 262 268 277 271 257 233 239 218 216 213 222 100 194 186 197 199 201 203 177 149 159 164 122 121 128 141 50 106 111 112 111 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: AUA/AUM Trend
FY 2016 11 AUA/AUM Trend Group € bn 77.9 Administered Assets (FY16: € 23.5 bn) 70.7 Managed Assets (FY16: € 54.3 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 99 00
Slide 12: Assets under Administration/Management
FY 2016 12 Assets under Administration/Management Group € mn 31/12/16 31/12/15 Change Mutual Funds & U-L Policies 44,200.6 39,820.7 +11% ’Freedom’ Life Policies 233.8 503.1 -54% Other Life Insurance products 1,524.9 1,730.9 -12% Banking 18,383.8 15,979.4 +15% Italy – Banca Mediolanum 64,343.1 58,034
Slide 13: Capital Adequacy
FY 2016 13 Capital Adequacy Group € mn – as at 31/12/2016 – preliminary data FY16 9M16 FY15 GROUP CAPITAL RATIOS Total Capital Ratio 20.0% 20.5% 19.7% Common Equity Tier 1 Ratio 20.0% 20.4% 19.7% Total Regulatory Capital Held 1,884 1,792 1,484 Required Capital – Banks * 942 915 920 Solvency Capital
Slide 14: FY 2016 Domestic Market Results
14 FY 2016 Domestic Market Results
Slide 15: Income Statement Domestic Market
FY 2016 15 Income Statement Domestic Market € mn FY16 FY15 Change Entry fees 59.3 87.7 -32% Management fees 800.0 773.4 +3% Performance fees 223.2 306.2 -27% Banking service fees 59.5 67.1 -11% Other fees 33.1 35.4 -7% Total commission income 1,175.1 1,269.9 -7% Net interest income 212.2 232.3 -9% N
Slide 16: Income Statement by Quarter
FY 2016 16 Income Statement by Quarter Domestic Market € mn Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Entry fees 24.9 27.5 18.1 17.3 14.3 14.4 15.4 15.2 Management fees 186.1 198.3 196.1 192.9 189.5 195.8 204.6 210.2 Performance fees 123.3 24.3 18.6 140.0 47.6 30.6 71.2 73.8 Banking service fees 17.5
Slide 17: Acquisition Costs in detail
FY 2016 17 Acquisition Costs in detail Domestic Market € mn FY16 FY15 Change One-time commissions 76.9 104.6 -26% Ongoing commissions 272.0 258.5 +5% Total commissions 349.0 363.1 -4% Incentives on individual net inflows 48.1 45.4 +6% Contests & bonuses 17.2 15.3 +12% Reimbursement of costs for cust
Slide 18: Total Net Inflows
FY 2016 18 Total Net Inflows Domestic Market € mn FY16 FY15 Change directly into Mutual Funds +2,418.9 +2,840.5 -15% through ‘MyLife’ U-L policy +757.9 +1,978.5 -62% through other U-L policies +422.2 -131.7 n.s. Mutual Funds Inflows +3,599.1 +4,687.4 -23% Other Life Insurance policies -267.5 -506.0
Slide 19: Mutual Funds Net Inflows by Category
FY 2016 19 Mutual Funds Domestic Market Net Inflows by Category € bn – including Unit-Linked policies FY15 FY16 € +4,687.4 mn € +3,599.1 mn +835 +1,712 -18 +499 -23 +1,710 +582 -14 +505*← +2,304 -122 +1,451 +1,205 -124 Bond Valore Equity Money Balanced Other Bond Valore Equity Money Balanced Other A
Slide 20: Mutual Funds Net Inflows by Product
FY 2016 20 Mutual Funds Domestic Market Net Inflows by Product € mn FY16 FY15 Change ’Best Brands’ funds of funds (IRL) +1,666.3 +2,137.8 -22% ’Challenge’ mutual funds (IRL) -3.4 -45.8 -93% ’Fondi Italia’ mutual funds (ITA) +220.6 +358.8 -39% 3rd-party stand-alone funds +563.4 +458.2 +23% Other -27.
Slide 21: Mutual Funds Gross Inflows by Product
FY 2016 21 Mutual Funds Domestic Market Gross Inflows by Product € mn FY16 FY15 Change ’Best Brands’ funds of funds (IRL) 3,668.8 5,302.0 -31% ’Challenge’ mutual funds (IRL) 488.2 711.0 -31% ’Fondi Italia’ mutual funds (ITA) 1,169.6 1,678.9 -30% 3rd-party stand-alone funds 685.3 524.2 +31% Other 20.
Slide 22: Mutual Funds AUM Trend
FY 2016 22 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 44.2 39.8 35.3 29.2 23.7 19.6 20.0 15.5 15.2 15.8 14.1 11.0 11.7 10.0 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
Slide 23: Mutual Funds Assets under Management
FY 2016 23 Mutual Funds Domestic Market Assets under Management € mn 31/12/16 31/12/15 Change ’Best Brands’ funds of funds (IRL) 18,643.4 16,403.4 +14% ’Portfolio’ funds of funds (IRL) 370.0 383.8 -4% ’Challenge’ mutual funds (IRL) 14,137.0 13,369.0 +6% Funds of Hedge Funds (IRL) 90.0 121.9 -26% ’Fo
Slide 24: Mutual Funds Assets by category and A.M. company
FY 2016 24 Mutual Funds Domestic Market Assets* by category and A.M. company as at 31/12/2016 – including U-L assets Gamax Mediolanum Management Balanced Gestione (Luxembourg) 6% Fondi (Italy) 1.4% 17.9% other A.M. companies 5.5% Equity 49% Bond 39% Low Yield Mediolanum High International 7% Yield F
Slide 25: Banking Revenues
FY 2016 25 Banking Domestic Market Revenues € mn FY16 FY15 Change Securities trading fees 12.3 19.0 -35% o/w 3rd-party structured bonds 4.2 9.9 -57% Service fees 47.2 48.1 -2% Fee income 59.5 67.1 -11% Net Interest Income 200.5 220.6 -9% Net income on investments at fair value (10.0) (2.2) +359% o/w
Slide 26: Banking Interest Spread
FY 2016 26 Banking Domestic Market Interest Spread FY16 FY15 Total Cost of Funding 0.46% 0.66% Retail Cost of Funding 0.65% 1.09% Total Interest Income 1.39% 1.59% Retail Interest Income 2.35% 2.75% TOTAL SPREAD 0.93% 0.92% Spread on Retail 1.70% 1.66%
Slide 27: Balance Sheet Highlights
FY 2016 27 Balance Sheet Highlights Domestic Market € mn – as at 31/12/2016 Liabilities Assets Retail 15,727 6,855 Treasury 2,518 11,449 o/w interbank / intra-group deposits & repos 1,281 258 o/w ECB refinancing 0 0 o/w MTS refinancing 1,237 953 o/w securities (bonds) 10,239 Other liabilities / asse
Slide 28: Banking Credit Quality
FY 2016 28 Banking Domestic Market Credit Quality € mn – as at 31/12/2016 31/12/16 31/12/15 Change Mortgages 5,210 4,757 +10% Personal & Commercial Loans 1,267 1,127 +12% Lines of credit 378 418 -10% Total Loans 6,855 6,302 +9% % on total loans B.Mediolanum Italian Banks* Gross non-performing loans
Slide 29: Banking Mortgage Update
FY 2016 29 Banking Domestic Market Mortgage Update € mn FY16 FY15 Mortgage Portfolio Total Value 5,210 4,757 Average rate 2.08% 2.49% Average residual LTV 57% 58% New Business Total amount granted 991 1,001 Average rate 1.52% 2.07% Average amount granted 142 143 Average initial LTV 59% 62%
Slide 30: Banking Assets under Administration
FY 2016 30 Banking Domestic Market Assets under Administration € mn 31/12/16 31/12/15 Change Cash Deposits 15,541.1 12,854.8 +21% Repurchase agreements 0 0 -0% Mediolanum bonds 115.3 154.7 -25% 3rd-party structured bonds 642.7 885.4 -27% Other securities under custody 2,084.8 2,084.6 +0% BANKING ADM
Slide 31: Mediolanum Group Bond Portfolio
FY 2016 31 Mediolanum Group Domestic Market Bond Portfolio € mn – as at 31/12/2016 Mediolanum Group Banca Mediolanum Mediolanum Vita Book value AD Book Value AD Book Value AD Italian Govies 11,972 0.98 10,830 0.73 1,003 3.58 Italian Financials 331 3.29 115 2.07 210 4.00 Spanish Govies 566 1.32 543 1
Slide 32: Focus on Financial Bonds
FY 2016 32 Mediolanum Group Domestic Market Focus on Financial Bonds* € mn – as at 31/12/2016 Avg Length TOTAL Covered Senior Subordinated Other to Maturity Unicredit SpA 87.7 3.0 69.7 15.0 1.3 Intesa Sanpaolo SpA 61.7 47.5 14.2 5.9 Medio Credito Centrale 37.1 37.1 5.1 UBI Banca 27.9 6.0 11.5 6.0 4.
Slide 33: Insurance Revenues
FY 2016 33 Insurance Domestic Market Revenues € mn FY16 FY15 Change Premiums less Amounts paid & change in reserves 18.3 28.2 -35% Commission income 415.3 436.7 -5% Net Interest Income 12.0 11.8 +2% Net income on investments at fair value 0.8 0.5 +53% o/w unrealised 0.9 0.9 -7% Net financial income
Slide 34: Insurance Life – Policyholders' Assets
FY 2016 34 Insurance Domestic Market Life – Policyholders’ Assets € mn 31/12/16 31/12/15 Change Traditional 1,346.6 1,326.0 +2% Index-linked 178.3 404.9 -56% Unit-linked pension plans 5,936.8 5,427.0 +9% Unit-linked endowment policies 3,830.0 3,829.8 +0% Unit-linked investment policies 6,933.1 5,790
Slide 35: Family Banker Network
FY 2016 35 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount & Split by Average Portfolio – 2016 > € 20 mn 18% +162 22% € 10-20 mn X% 33% 36% 4,387 € 5-10 mn -194 4,326 28% -29 26% € 1-5 mn Turnover rate 17% (annualised) 5.1% 13% 4% X% 3% < € 1 mn Avg. 01/01 Resigned Retire
Slide 36: Focus on 'Private Bankers'
FY 2016 36 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’* as at 31/12/2016 446 455 409 322 362 215 248 146 177 124 83 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Average assets in portfolio: € 35.2 mn o/w managed assets: € 25.5 mn * 'Private Bankers' are a subset of Family B
Slide 37: FY 2016 Foreign Markets Results
37 FY 2016 Foreign Markets Results
Slide 38: Spain Highlights
FY 2016 38 Spain Foreign Markets Highlights € mn FY16 FY15 Change Net Income excluding non-recurring items 23.7 27.8 -15% Net impact of settlement of past (inherited) litigation 5.1 (7.8) n.s. Net Income 28.8 20.0 +44% Managed Assets 2,649.1 2,223.0 +19% Administered Assets 1,231.2 1,323.1 -7% Total
Slide 39: Germany – Total Highlights
FY 2016 39 Germany – Total Foreign Markets Highlights € mn FY16 FY15 Change Net Income excluding non-recurring items (12.0) (7.0) +71% Net impact of sale of Visa EU shares 8.4 0 n.s. Net Income (3.6) (7.0) -49% Managed Assets 444.2 412.9 +8% Administered Assets 147.0 92.9 +58% Total Assets 591.2 505
Slide 40: Germany – Bankhaus August Lenz Highlights
FY 2016 40 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn FY16 FY15 Change Net Income excluding non-recurring items (13.4) (11.7) +15% Net impact of sale of Visa EU shares 8.4 0 n.s. Net Income (5.0) (11.7) -57% Managed Assets 253.9 215.6 +18% Administered Assets 147.0 92.9 +58% Tota
Slide 41: Germany – Gamax Highlights
FY 2016 41 Germany – Gamax Foreign Markets Highlights € mn FY16 FY15 Change Net Income 1.5 4.7 -69% Assets under Management 190.3 197.2 -4% Gross Inflows 11.6 14.2 -18% Net Inflows -12.4 -41.2 -70%
Slide 42: Business Update
42 Business Update
Slide 43: February 2017 Net Inflows
Mediolanum 43 Banca Mediolanum Facts February 2017 Net Inflows € mn Feb '17 YTD ‘17 YTD ‘16 Managed Assets +305 +473 +285 o/w Mutual Funds, U-L & Managed Accounts +334 +536 +358 Administered Assets +79 +179 +864 Italy – Banca Mediolanum Total Net Inflows +383 +652 +1,150 Managed Assets +57 +101 +76
Slide 44: Italian Sales Networks Ranking by Net Inflows
44 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 45: Net Inflows into Mutual Funds
45 Net Inflows into Mutual Funds* Business Update € mn 15000 600 10000 400 5000 200 0 0 Jan 08 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jul 02 Jul 13 Jul 00 Jul 01 Jul 03 Jul 04 Jul 05 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10 Ju
Slide 46: Mutual Funds AUM BMED Market Share, Assets, Rank
46 Mutual Funds AUM Business Update BMED Market Share, Assets , Rank 4 5 Market Share - Jan. 2017 6% 6 66 45 Intesa Sanpaolo 19.9% 8 Pioneer 9.8% 9 40 5% Generali 7.9% 11 12 35 Blackrock 6.6% 14 Anima 6.4% 4% 30 6 Mediolanum 4.7% Azimut 3.5% 25 3% UBI Banca 3.1% 20 JP Morgan 3.1% Arca 2.8% 2% 15 Amu
Slide 47: Mediolanum Asset Management Companies Net Average Return
Mediolanum 47 Mediolanum Asset Management Companies Facts Net Average Return As at 31/12/2016 – NAV-weighted average on a monthly basis Net return Ranking* 1-year 3.16% 5 2-year 5.13% 5 3-year 11.98% 4 4-year 18.61% 3 5-year 30.05% 3 Since March 2009 (market low) 67.80% 2 Calculations are performed
Slide 48: Asset & Wealth Management
48 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 49: Asset & Wealth Management
49 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 50: 'My Style' Managed Account
50 ‘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 51: PIR – Piani Individuali di Risparmio
Mediolanum 51 PIR – Piani Individuali di Risparmio Facts 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 inves
Slide 52: Customer Behaviour
52 Banca Mediolanum Business Update Customer Behaviour as at 31/12/2016 987,440 primary account holders: …59% of which use Mediolanum as their primary banking institution 813,915 with a 479,138 vs. 440,650 as at 31/12/2015 (no bank account) bank account… In a 2015 survey, 39% of Mediolanum customers
Slide 53: Cross-selling into managed products
53 Banca Mediolanum Business Update Cross-selling into managed products Average assets Per-capita asset growth of ‘Freedom’ account holders* after 93 months (€13.2 bn in total assets as at 31/12/2016) € 189,767 Average assets at account opening € 63,442 € 139,367 (73%) in high-margin managed assets
Slide 54: Direct Channel Accesses
54 Banca Mediolanum Business Update 30 Direct Channel Accesses millions of accesses 25 20 15 60% 48% 68% 50% 42% 10 38% 5 27% 17% 10% 8% 7% 6% 5% 6% 5% 5% 0 2013 2014 2015 2016 Website Mobile Interactive Voice Responder Banking Centre Reps
Slide 55: Focus on high-remuneration deposits
55 Banca Mediolanum Business Update Focus on high-remuneration deposits Deposits in € mn as at 31/12/2016 – rates offered as at 16/01/2017 ‘Freedom+’ balances above € 15,000 (current offer*: 0.25% to 0.70% according to cluster) 5,612 ‘InMediolanum’ time deposits & lock-ins on current accounts (curre
Slide 56: ECB Comprehensive Assessment: BMED Solidity Confirmed
56 ECB Comprehensive Assessment: Business Update BMED Solidity Confirmed Asset Quality Review indicated ‘no impact’ on FY15 CET1 Ratio, confirmed as starting point for Stress Test The Bank found to be extremely resilient under the Stress Test, primarily due to reliability of recurring commission inc
Slide 57: Mediolanum Facts
57 Mediolanum Facts
Slide 58: BMED Shareholders & Group Structure
Mediolanum 58 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 59: Integrated Business Model
Mediolanum 59 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 60: Multi-channel Model
Mediolanum 60 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 61: Model combines advantages of traditional and direct banks
Mediolanum 61 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 62: Italian Household Financial Assets
Mediolanum 62 Italian Household Financial Assets Facts as at 30/06/2015 – real estate not included Network of Asset Gatherers have only 8,7% of the huge Italian 32.2% Other (e.g. cash, HH financial assets market, entrepreneurial although recognised as best-in- businesses) class in terms of personal
Slide 63: Banca Mediolanum's Market Share
Mediolanum 63 Italian Household Financial Assets Facts Banca Mediolanum’s Market Share 1.68% 1.5% on a total of € 4,010 bn reported by Banca d’Italia as at 30/06/2015 1.0% 0.5% 0% 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Slide 64: A 'real' Bank with a Solid Set of Numbers
Mediolanum 64 A ‘real’ Bank with a Solid Set of Numbers Facts as at 31/12/2016 ROE CET1 20.9% 10 Y avg. 2007- 2016 20.0% Retail Deposits Retail Credit Book € 15.7 bn € 6.9 bn % Gross NPLs % Net NPLs 1.38% 0.74% vs 16.5% Italian Banks* vs 10.4% Italian Banks* * Source: Bank of Italy – Statistical Bul
Slide 65: Net Income Trend
Mediolanum 65 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 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 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operation
Slide 66: Dividend Payout
Mediolanum 66 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 Extra dividends paid 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
Slide 67: AUA/AUM Trend
Mediolanum 67 AUA/AUM Trend Facts € bn 5y CAGR 14.0% 77.9 Administered Assets (FY16: € 23.5 bn) 70.7 Managed Assets (FY16: € 54.3 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
Slide 68: Total Net Inflows Trend
Mediolanum 68 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 69: Family Banker Network
Mediolanum 69 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 4,114 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
Slide 70: Average Portfolio per Family Banker
Mediolanum 70 Banca Mediolanum Facts Average Portfolio per Family Banker® € mn 14.8 13.3 12.2 10.9 9.9 8.5 2011 2012 2013 2014 2015 2016
Slide 71: Family Banker Network: Split by Average Portfolio
Mediolanum 71 Banca Mediolanum Facts Family Banker® Network: Split by Average Portfolio 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 72: Banca Mediolanum Customers
Mediolanum 72 Banca Mediolanum Facts Customers Primary account holders (thousands) 943 987 894 915 921 897 886 879 878 907 798 840 761 778 785 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Slide 73: Average Assets per Customer
Mediolanum 73 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 74: Bank Accounts
Mediolanum 74 Banca Mediolanum Facts Bank Accounts thousands Since March 2005 all new customers are required to open a bank account as their first product 902 841 729 774 708 582 627 534 566 568 466 344 392 297 339 333 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Slide 75: Management Fees History
Mediolanum 75 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 76: Performance Fees History
Mediolanum 76 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 77: Mediolanum's Culture: Our Competitive Advantage
Mediolanum 77 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 78: Investment Advisory Strategy
Mediolanum 78 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 79: The Mediolanum Approach vs. Open Architecture
Mediolanum 79 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 80: The 'Intelligent Investment Strategy' Service
Mediolanum 80 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 81: 'MyLife' Unit-Linked Policy
Mediolanum 81 ’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 82: The 'Freedom' Current Account
Mediolanum 82 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 83: Training & Communication: Mediolanum Corporate University
Mediolanum 83 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 84: Training & Communication: Corporate TV Channel
Mediolanum 84 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 85: Marketing Events
Mediolanum 85 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 86: The 4th best-known bank brand in Italy
Mediolanum 86 The 4th best-known bank brand in Italy Facts Spontaneous brand awareness – Italian banks – 2016 45% 12% 40% 11% 8% 26% 6% 23% 5% 15% 4% source: GFK Eurisko
Slide 87: Banca Mediolanum's advertising
Mediolanum 87 Banca Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – 2016 16 7 5 5 3 3 2 1 1 1 source: GFK Eurisko
Slide 88: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 88 Ranking of Italian Banking Groups Facts by Market Capitalisation as at 01/03/2017 Intesa-SanPaolo 38.4 Unicredit 29.3 Mediobanca 6.9 Banca Mediolanum 4.7 Banco-BPM 3.7 FinecoBank 3.3 UBI 3.0 Banca Generali 2.7 BPER 2.2 CREDEM 2.0 Banca IFIS 1.6 Pop.di Sondrio 1.5 CREVAL 0.4 Banca Desio
Slide 89: MED.MI / BMED.MI Price Return & Total Return Index
Mediolanum 89 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 – January 13, 2017 source: Datastream
Slide 90: Disclaimer
90 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