Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — Mediolanum — H1 2015 Earnings Presentation
85 slides from Banca Mediolanum SpA's earnings presentation, Jul 30, 2015
Slide 1: H1 2015 Results & Business Update
July 30, 2015 H1 2015 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
Mediolanum 2 Table of Contents H1 2015 Results and colour key H1 2015 Group Results 3 H1 2015 Domestic Market Results 15 H1 2015 Foreign Markets Results 38 Business Update 43 Mediolanum Facts 52
Slide 3: H1 2015 Group Results
3 H1 2015 Group Results
Slide 4: Income Statement - Group
H1 2015 4 Income Statement Group € mn H115 H114 Change Entry fees 58.5 50.8 +15% Management fees 404.7 319.5 +27% Performance fees 159.3 86.6 +84% Banking service fees 43.1 51.2 -16% Other fees 20.0 16.9 +19% Total commission income 685.7 525.0 +31% Net interest income 124.8 115.9 +8% Net income on
Slide 5: Addressing the 'Performance Fees Issue': Backtesting Results
5 Addressing the ‘Performance Fees Issue’ Current Issues Backtesting Results What group performance fees would have been applying the rules currently used for Italy-based funds to all funds 250 247 Actual performance fees (bps*) Average: 76 bps 200 Recalculated performance fees (bps*) Average: 88 bp
Slide 6: Mediolanum Asset Management Companies Net Average Return
6 Mediolanum Asset Management Companies Current Issues Net Average Return As at 30/06/2015 unless otherwise noted – NAV-weighted average on a monthly basis Net return Ranking* Year-to-date as at 17/07/2015 7.98% n/a 1-year 7.84% 2 2-year 16.87% 2 3-year 24.05% 2 4-year 26.08% 2 5-year 32.39% 1 Since
Slide 7: Income Statement Salient Points
H1 2015 7 Income Statement Salient Points Group YoY comparison Entry fees (€ 8 mn higher YoY) reflected the significantly higher inflows, offsetting the downward trend resulting from the increase in average investment size Management fees (€ 85 mn higher YoY) our #1 revenue source benefitted from si
Slide 8: Income Statement by Quarter
H1 2015 8 Income Statement by Quarter Group € mn Q114 Q214 Q314 Q414 Q115 Q215 Entry fees 24.1 26.7 23.2 22.9 27.6 30.9 Management fees 154.5 165.0 175.1 179.5 195.7 209.0 Performance fees 31.3 55.3 33.3 56.2 132.9 26.4 Banking service fees 22.6 28.6 20.9 28.3 22.1 21.0 Other fees 8.0 8.9 8.5 8.7 9.
Slide 9: Quarterly Commission Income from Mgmt Fees
H1 2015 9 Quarterly Commission Income from Mgmt Fees Group € mn 200 150 209 100 196 175 180 165 151 154 139 144 123 129 110 111 117 50 100 105 105 104 104 86 91 94 72 81 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 2009 2010 2011 2012 2013 2014 2015 198 200 2
Slide 10: Quarterly Net Interest Income
H1 2015 10 Quarterly Net Interest Income Group € mn 90 80 70 60 50 84 40 73 75 80 75 74 72 64 65 64 30 53 60 59 57 59 59 61 46 45 44 20 41 36 35 41 31 30 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2013 2014 2015
Slide 11: Quarterly Recurring Revenues
H1 2015 11 Quarterly Recurring Revenues Group Commission Income from Management Fees + Net Interest Income (€ mn) 300 250 200 150 273 257 234 239 218 216 213 222 100 177 194 186 197 199 201 203 159 164 141 149 122 121 128 111 112 111 50 106 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 12: AUA Trend
H1 2015 12 AUA Trend Group € bn Administered Assets (H115: € 20.4 bn) 69.8 64.5 Managed Assets (H115: € 49.4 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 4.7 5.3 5.5 6.1 0.1 0.6 0.9 1.3 1.6 2.0 2.6 3.1 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
Slide 13: Assets under Administration
H1 2015 13 Assets under Administration Group € mn 30/06/15 31/12/14 Change 30/06/14 Change Mutual Funds & U-L Policies 39,404.8 35,332.8 +12% 32,425.7 +22% ’Freedom’ Life Policies 685.5 974.3 -30% 1,284.3 -47% Other Life Insurance products 1,907.0 2,147.0 -11% 2,368.6 -19% Banking* 15,140.5 14,578.9
Slide 14: Capital Adequacy
H1 2015 14 Capital Adequacy Group € mn – as at 30/06/2015 H115 FY14 Total Regulatory Capital Held 1,114 1,053 Total Required Capital 777 745 o/w Required Capital – Banks 535 512 o/w Solvency Margin – Insurance companies 242 233 EXCESS CAPITAL 337 308 CAPITAL RATIOS* (Mediolanum Banking Group) Total
Slide 15: H1 2015 Domestic Market Results
15 H1 2015 Domestic Market Results
Slide 16: Income Statement - Domestic Market
H1 2015 16 Income Statement Domestic Market € mn H115 H114 Change Entry fees 52.3 46.4 +13% Management fees 384.4 304.3 +26% Performance fees 147.6 83.1 +78% Banking service fees 34.0 42.4 -20% Other fees 19.2 16.2 +19% Total commission income 637.5 492.3 +29% Net interest income 114.7 104.0 +10% Ne
Slide 17: Income Statement by Quarter
H1 2015 17 Income Statement by Quarter Domestic Market € mn Q114 Q214 Q314 Q414 Q115 Q215 Entry fees 22.0 24.5 20.8 20.5 24.9 27.5 Management fees 148.4 155.9 166.4 170.6 186.1 198.3 Performance fees 30.1 52.9 31.4 52.5 123.3 24.3 Banking service fees 18.3 24.1 16.4 23.2 17.5 16.5 Other fees 7.7 8.5
Slide 18: Acquisition Costs in detail
H1 2015 18 Acquisition Costs in detail Domestic Market € mn H115 H114 Change One-time commissions 58.5 49.6 +18% Ongoing commissions 126.6 99.7 +27% Total commissions 185.1 149.3 +24% Incentives on individual net inflows 19.1 12.7 +50% Contests & bonuses 8.0 7.6 +4% Reimbursement of costs for custom
Slide 19: Total Net Inflows
H1 2015 19 Total Net Inflows Domestic Market € mn H115 H114 Change | directly into Mutual Funds +1,539.5 +2,106.9 -27% | through ‘MyLife’ U-L policy +1,347.3 +302.5 +345% | through other U-L policies -174.9 -100.4 +74% Mutual Funds Inflows +2,711.9 +2,309.0 +17% Other Life Insurance policies -295.5
Slide 20: Mutual Funds Net Inflows by Category
H1 2015 20 Mutual Funds Domestic Market Net Inflows by Category € bn – including Unit-Linked policies H114 H115 € +2,309.0 mn € +2,711.9 mn +652 +5 +502 +21 -41 +653 -4 +322 +700 +1,479 -36 +769 Bond Valore Equity Balanced Money Other Bond Valore Equity Balanced Money Other Attivo mkt Attivo mkt
Slide 21: Mutual Funds Net Inflows by Product
H1 2015 21 Mutual Funds Domestic Market Net Inflows by Product € mn H115 H114 Change ’Best Brands’ funds of funds (IRL) +1,188.6 +776.9 +53% ’Challenge’ mutual funds (IRL) -58.7 -80.6 -27% ’Fondi Italia’ mutual funds (ITA) +160.8 +1,409.3 -89% 3rd-party stand-alone funds +285.9 +44.6 n.s. Other -37.
Slide 22: Mutual Funds Gross Inflows by Product
H1 2015 22 Mutual Funds Domestic Market Gross Inflows by Product € mn H115 H114 Change ’Best Brands’ funds of funds (IRL) 3,340.9 2,028.2 +65% ’Challenge’ mutual funds (IRL) 439.9 281.9 +56% ’Fondi Italia’ mutual funds (ITA) 984.5 1,734.3 -43% 3rd-party stand-alone funds 322.3 49.5 n.s. Other 46.5 1
Slide 23: Mutual Funds Assets by category and A.M. company
H1 2015 23 Mutual Funds Domestic Market Assets* by category and A.M. company as at 30/06/2015 – including U-L assets Mediolanum Gamax Gestione Management Other 2% Fondi (Italy) (Luxembourg) Money 1.5% Market 1% 18.9% other A.M. companies Valore 3.4% Attivo 3% Equity 50% Mediolanum Bond 39% Internati
Slide 24: Mutual Funds Assets under Management
H1 2015 24 Mutual Funds Domestic Market Assets under Management € mn 30/06/15 31/12/14 Change 30/06/14 Change ’Best Brands’ funds of funds (IRL) 16,011.8 13,819.0 +16% 12,806.2 +25% ’Portfolio’ funds of funds (IRL) 406.6 459.8 -12% 506.1 -20% ’Challenge’ mutual funds (IRL) 13,623.7 13,386.6 +2% 12,8
Slide 25: Mutual Funds AUM Trend
H1 2015 25 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 39.4 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: Banking Revenues
H1 2015 26 Banking Domestic Market Revenues € mn H115 H114 Change Securities trading fees 10.9 19.0 -42% o/w 3rd-party structured bonds 5.8 13.1 -56% Service fees 23.1 23.4 -2% Fee income 34.0 42.4 -20% Net Interest Income 110.1 100.9 +9% Net income on investments at fair value 1.5 (4.7) n.s. o/w un
Slide 27: Banking Interest Spread
H1 2015 27 Banking Domestic Market Interest Spread H115 FY14 Total Cost of Funding 0.70% 1.07% Retail Cost of Funding 1.18% 1.63% Total Interest Income 1.64% 2.08% Retail Interest Income 2.85% 3.03% TOTAL SPREAD 0.94% 1.01% Spread on Retail 1.66% 1.39%
Slide 28: Banking Credit Quality
H1 2015 28 Banking Domestic Market Credit Quality € mn – as at 30/06/2015 H115 H114 Change Mortgages 4,419 3,814 +16% Personal & Commercial Loans 996 748 +33% Lines of credit 416 392 +6% Total Loans 5,831 4,954 +18% % on total loans B.Mediolanum Italian Banks* Gross non-performing loans 1.4% 17.4% a
Slide 29: Banking Mortgage Update
H1 2015 29 Banking Domestic Market Mortgage Update € mn H115 H114 FY14 Mortgage Portfolio Total Value 4,418.8 3,813.9 4,161.1 Average rate 2.60% 2.84% 2.75% Average residual LTV 58% 55% 56% New Business Total amount granted 436.7 428.8 907.8 Average rate 2.27% 3.13% 2.85% Average amount granted 143
Slide 30: Banking Assets under Administration
H1 2015 30 Banking Domestic Market Assets under Administration € mn 30/06/15 31/12/14 Change 30/06/14 Change Cash Deposits 11,943.2 11,379.8 +5% 10,842.1 +10% Repurchase agreements 21.2 0.4 n.s. 198.3 -89% Mediolanum bonds 183.7 272.1 -32% 337.6 -46% 3rd-party structured bonds 1,139.3 1,044.2 +9% 1,
Slide 31: Banca Mediolanum Balance Sheet
H1 2015 31 Banca Mediolanum Domestic Market Balance Sheet € mn – as at 30/06/2015 Liabilities Assets Retail 12,217 5,831 Treasury 10,899 16,888 o/w interbank / intra-group deposits & repos 2,072 851 o/w ECB refinancing 0 0 o/w MTS refinancing 8,827 9,092 o/w securities (bonds) 6,945 Other liabilitie
Slide 32: Mediolanum Group Bond Portfolio
H1 2015 32 Mediolanum Group Domestic Market Bond Portfolio € mn – as at 30/06/2015 Mediolanum Group Banca Mediolanum Mediolanum Vita Book value AD Book Value AD Book Value AD Italian Govies 17,960 1.1 16,442 1.0 1,329 2.9 Italian Financials 950 1.8 696 0.9 254 4.3 Spanish Govies 737 2.2 699 2.2 36 2
Slide 33: Insurance Revenues
H1 2015 33 Insurance Domestic Market Revenues € mn H115 H114 Change Premiums less Amounts paid & change in reserves 19.4 14.6 +33% Commission income 224.1 146.0 +53% Net Interest Income 5.4 6.5 -18% Net income on investments at fair value (1.6) 4.2 n.s. o/w unrealised (2.0) 2.0 n.s. Net financial in
Slide 34: Insurance Life - Policyholders' Assets
H1 2015 34 Insurance Domestic Market Life – Policyholders’ Assets € mn 30/06/15 31/12/14 Change 30/06/14 Change Traditional 1,277.2 1,265.2 +1% 1,236.6 +3% Index-linked 629.8 881.8 -29% 1,132.0 -44% Unit-linked pension plans 5,415.8 5,025.7 +8% 4,674.2 +16% Unit-linked endowment policies 3,974.3 3,8
Slide 35: Banca Mediolanum Family Banker Network
H1 2015 35 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount and split by average portfolio – Year 2015 +95 15% > € 20 mn 18% 31% -81 -7 X% 33% € 10-20 mn 4,386 4,393 € 5-10 mn 30% 28% € 1-5 mn Turnover rate 19% (annualised) 4.0% 17% 5% X% 5% < € 1 mn Avg. 01/01 Resigned Re
Slide 36: Focus on 'Private Bankers'
H1 2015 36 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’* as at 30/06/2015 409 404 322 362 215 248 146 177 124 83 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1 2015 Average assets in portfolio: € 32.1 mn o/w managed assets: € 23.8 mn * 'Private Bankers' are a subset of Family Bankers
Slide 37: Banca Esperia (100%) Highlights
H1 2015 37 Banca Esperia (100%) Domestic Market Highlights € mn H115 H114 Change vs.FY14 Statutory Net Income 5.8 7.6 -23% Equity contribution in Mediolanum’s P&L* (0.2) 4.0 n.s. Assets under Administration 17,612 15,509 +14% +11% % in Managed Assets 50.0% 47.8% +4% +0% Net Inflows +320 +517 -38% o/
Slide 38: H1 2015 Foreign Markets Results
38 H1 2015 Foreign Markets Results
Slide 39: Spain Highlights
H1 2015 39 Spain Foreign Markets Highlights € mn H115 H114 Change vs.FY14 Net Income excluding non-recurring items 14.2 10.2 +40% Net impact of settlement of past (inherited) litigation (7.8) n.s. Net Income 6.4 10.2 -37% Managed Assets 2,113.1 1,699.0 +24% +12% Administered Assets 1,269.0 947.9 +34
Slide 40: Germany - Total Highlights
H1 2015 40 Germany – Total Foreign Markets Highlights € mn H115 H114 Change vs.FY14 Net Income (1.9) (3.0) -39% Managed Assets 432.6 369.8 +17% +7% Administered Assets 82.7 74.1 +12% +4% Total Assets 515.3 443.9 +16% +6% Gross Inflows into Managed Assets 36.3 33.8 +7% Net Inflows into Managed Assets
Slide 41: Germany - Bankhaus August Lenz Highlights
H1 2015 41 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn H115 H114 Change vs.FY14 Net Income (5.4) (3.8) +43% Managed Assets 212.8 172.1 +24% +9% Administered Assets 82.7 74.1 +12% +4% Total Assets 295.5 246.3 +20% +8% Gross Inflows into Managed Assets 24.6 29.5 -16% Net Inflows int
Slide 42: Germany - Gamax Highlights
H1 2015 42 Germany – Gamax Foreign Markets Highlights € mn H115 H114 Change vs.FY14 Net Income 3.6 0.7 +379% Assets under Management 219.7 197.7 +11% +5% Gross Inflows 11.6 4.3 +169% Net Inflows -17.9 -20.8 -14%
Slide 43: Business Update
43 Business Update
Slide 44: Banca Mediolanum June 2015 Net Inflows
44 Banca Mediolanum Business Update June 2015 Net Inflows € mn June ‘15 2015 YTD 2014 YTD | directly into Mutual Funds +395 +1,539 +2,107 | through ‘MyLife’ U-L policy +224 +1,347 +303 | through other U-L policies -19 -175 -100 Mutual Funds Inflows +600 +2,712 +2,309 Other Life Insurance policies -3
Slide 45: Italian Sales Networks Ranking by Net Inflows H1 2015
45 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group H1 2015 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Finecobank 2,582,291 1,688,216 1,278,379 Banca Generali 2,235,941 2,030,871 591,384 Azimut 2,217,113 1,835,374 612,566 Banca Mediolanum 2,175,
Slide 46: Italian Sales Networks Ranking by Net Inflows FY 2014
46 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group FY 2014 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Banca Mediolanum 4,140,178 ** 4,153,558** 3,480,548 Banca Generali 4,023,691 4,188,990 554,873 Azimut 3,615,021 3,525,833 1,288,317 Unicredit
Slide 47: Net Inflows into Mutual Funds
47 Net Inflows into Mutual Funds* Business Update € mn 15000 533 600 10000 400 5000 200 0 0 Jan 00 Jan 01 Jan 02 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 Jul 08 Jul 00 Jul 01 Jul 02 Jul 03 Jul 04 Jul 05 Jul 06 Jul 07 Jul 09 Jul 10 Jul 11 Jul 12 Jul 1
Slide 48: Mutual Funds AuM: Market Share, Assets, Rank
48 Mutual Funds AuM Business Update Mediolanum’s Market Share , Assets , Rank 6% 45 June 2015 mkt share Intesa Sanpaolo 20.8% 40 Pioneer 11.2% 5% Generali 8.4% 35 Anima Holding 6.2% 4% 30 5 Mediolanum 5.0% Azimut 3.6% 25 F. Templeton 3.3% 3% Arca 3.2% 4 20 5 UBI Banca 3.1% 6 JPMorgan 3.1% 2% 8 15 In
Slide 49: Banca Mediolanum Customer Behaviour
49 Banca Mediolanum Business Update Customer Behaviour as at 30/06/2015 922,544 primary account holders: …58% of which use Mediolanum as their primary banking institution 728,428 with a 419,828 vs. 387,706 as at 30/06/2014 (no bank account) bank account… In a 2013 survey, 39% of Mediolanum customers
Slide 50: 'Freedom' account customers: Cross-selling into managed products
50 ’Freedom’ account customers: Business Update Cross-selling into managed products Average assets Per-capita asset growth of ‘Freedom’ account holders* after 74 months (€10.6 bn in total assets as at 30/06/2015) € 185,344 Average assets at account opening € 119,865 (65%) € 62,950 in high-margin man
Slide 51: Focus on high-remuneration deposits
51 Banca Mediolanum Business Update Focus on high-remuneration deposits € mn – as at 30/06/2015 ‘Freedom+’ balances above € 15,000 (current offer*: 1.00%) 2,822 ‘InMediolanum’ time deposits & lock-ins on current accounts (current offer*: 1.40%) 3,670 Launched May 2011 as an aggressive move to acquir
Slide 52: Mediolanum Facts
52 Mediolanum Facts
Slide 53: Mediolanum Shareholders & Group Structure
Mediolanum 53 Mediolanum Shareholders & Group Structure Facts as at 30/06/2015 BANKING Banca 100% Banco Bankhaus Mediolanum 100% Mediolanum Mediolanum August Lenz Fiduciaria ASSET MANAGEMENT Mediolanum Mediolanum Int’l Mediolanum Gamax 100% Gestione Fondi Funds Gestion S.A. Management Doris Group (d
Slide 54: Mediolanum's Integrated Business Model
Mediolanum 54 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 55: Mediolanum's Multi-channel Banking Model
Mediolanum 55 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 56: Direct Channel Access Trend
Mediolanum 56 Direct Channel Access Trend Facts January to June, millions of accesses 14 12 10 8 6 70% 62% 52% 37% 4 2 24% 14% 10% 6% 8% 6% 6% 5% 0 2013 2014 2015 Website Mobile Interactive Voice Responder Banking Centre Reps
Slide 57: Model combines advantages of traditional and direct banks
Mediolanum 57 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 58: Italian Household Financial Assets
Mediolanum 58 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 59: Mediolanum's Market Share of Household Assets
Mediolanum 59 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 60: Consolidated Net Income Trend
Mediolanum 60 Consolidated Net Income Trend Facts € mn 351 337 321 233 224 224 227 212 217 141 131 129 115 103 88 82 75 67 54 60 49 38 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 H1 15 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operation
Slide 61: Dividend Payout
Mediolanum 61 Dividend Payout Facts € mn 351 Net Income 337 321 Retained Earnings Total dividends paid 153 122 233 224 224 219 212 217 88 78 66 107 110 141 131 129 115 39 21 103 88 82 50 67 199 75 46 30 184 54 60 38 9 146 146 146 132 26 34 102 110 110 114 27 69 73 73 80 81 27 34 41 50 -14 96 97 98 9
Slide 62: Embedded Value
Mediolanum 62 Embedded Value Facts € mn Value of In-Force business (FY14: € 2,403 mn) 4,129 3,999 Adjusted Shareholders’ Equity (FY14: € 1,726 mn) 3,478 3,233 3,122 3,164 3,072 2,957 2,747 2,493 2,514 2,029 1,768 1,816 1,496 1,283 707 745 534 595 484 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 1
Slide 63: Banca Mediolanum Total Net Inflows
Mediolanum 63 Banca Mediolanum Facts Total Net Inflows € mn 7000 Net Inflows into Administered Assets 6000 5,795 Net Inflows into Managed Assets 5000 4,082 4000 3,225 3,437 3,285 3,339 3,059 3000 2,610 2000 1,805 2,280 2,258 1,546 1,544 1,689 1000 1,265 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Slide 64: Italian Sales Networks Ranking by Net Inflows 2009-2014
Mediolanum 64 Italian Sales Networks Facts Ranking by Net Inflows € mn - totals by Group 6-YRS PERIOD, 2009 to 2014 Total Net Inflows o/w Managed Assets o/w Mutual Funds* Mediolanum 21.443 12.777 15.369 Fideuram (incl. Sanpaolo Invest) 13.642 19.100 9.092 Unicredit (Fineco) 12.986 9.457 10.450 Banca
Slide 65: Banca Mediolanum Family Banker Network
Mediolanum 65 Banca Mediolanum Facts Family Banker® Network Licensed Financial Advisors 5,040 5,077 4,945 4,772 4,507 4,315 4,407 4,386 4,393 4,114 4,052 4,048 3,978 4,011 3,842 3,018 2,513 2,200 2,046 1,915 1,828 1,885 1,581 1,659 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Slide 66: Banca Mediolanum Customers
Mediolanum 66 Banca Mediolanum Facts Customers Primary account holders (thousands) 894 915 921 897 886 879 878 907 923 798 840 761 778 785 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 H1 15
Slide 67: Banca Mediolanum Bank Accounts
Mediolanum 67 Banca Mediolanum Facts Bank Accounts ’000 Since March 2005: all new customers are required to open a bank account as their first product 774 800 708 729 582 627 534 566 568 466 392 339 333 344 297 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 H1 15
Slide 68: Management Fees in History
Mediolanum 68 Management Fees* in 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 H1 15 * including insurance commissions on U-L policies
Slide 69: Resilience of Mediolanum's Management Fees
Mediolanum 69 Resilience of Mediolanum’s Management Fees* Facts regardless of trends in equity markets worldwide 1,276 Worldwide Equity Markets (MSCI World Index) 779 Mediolanum’s 35.3 Mutual Assets funds (€ bn) 11.0 04 05 06 07 08 09 10 11 12 13 14 1.98% 2.00% 2.02% 2.02% 1.96% 1.94% 1.98% 2.00% 2.
Slide 70: Performance Fees Trend
Mediolanum 70 Performance Fees Trend Facts including Unit-Linked policies Commission income from performance fees in € mn bps on average assets* 146 133 172 182 176 99 97 10-yr average 88 153 80.5 bps 155 152 76 57 63 60 52 85 83 45 45 57 62 92 50 03 04 05 06 07 08 09 10 11 12 13 14 * calculated onl
Slide 71: The 'Freedom' Current Account
Mediolanum 71 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 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: 'MyLife' Unit-Linked Policy Pricing
Mediolanum 73 ’MyLife’ Unit-Linked Policy Facts Pricing Initial investment: € 50,000 minimum (lump-sum or through ‘Double Chance’ programmed accumulation plan) Up-front fee: 3% to 0% depending on size of investment (0% above € 1 mn) Insurance fee: 1.75% annually Management fees on underlying funds:
Slide 74: The 4th best known bank brand in Italy
Mediolanum 74 The 4th best known bank brand in Italy Facts Total brand awareness – Italian banks – 2014 47% 13% 43% 13% 9% 28% 7% 20% 5% 17% 4% source: GFK Eurisko
Slide 75: Mediolanum's advertising: the most memorable in banking
Mediolanum 75 Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – 2014 14% 10% 8% 7% 4% 3% 2% 1.20% 1% 1% 0.40% source: GFK Eurisko
Slide 76: Mediolanum's Culture: Our Competitive Advantage
Mediolanum 76 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 77: Investment Advisory Strategy
Mediolanum 77 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 78: The Mediolanum Approach vs. Open Architecture
Mediolanum 78 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 79: Training & Communication: Mediolanum Corporate University
Mediolanum 79 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 80: Training & Communication: Corporate TV Channel
Mediolanum 80 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 81: Marketing Events
Mediolanum 81 Marketing Events Facts 10,238 events held in 2014 (+26% vs. 2013): local & high-level events, sports events (e.g. Giro d’Italia), talk shows, etc. 430,000 participants (customers and perspective customers) per year Results are measurable: Net inflows into managed assets of invited cust
Slide 82: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 82 Ranking of Italian Banking Groups Facts by Market Capitalisation as at 24/07/2015 Intesa-SanPaolo € 55.9 bn Unicredit € 36.8 bn Mediobanca € 8.3 bn UBI € 6.9 bn Banco Popolare € 5.7 bn Mediolanum € 5.6 bn MPS € 5.4 bn Pop. Milano € 4.4 bn Finecobank € 4.3 bn BPER € 4.0 bn Banca General
Slide 83: MED.MI Total Return Index
Mediolanum 83 MED.MI Facts Total Return Index* 1400 1200 1000 800 600 400 200 0 * includes dividend reinvestment, June 3, 1996 – July 24, 2015 source: Datastream
Slide 84: Disclaimer
84 Disclaimer This document has been prepared by Mediolanum S.p.A. for the sole purpose of providing information and presenting the Group’s strategies. The information, opinions, valuations and forecasts it contains have not been audited by any independent body; they may be altered at any time witho
Slide 85: Investor Relations contacts
85 Investor Relations contacts Alessandra Lanzone Mediolanum S.p.A. +39-02-9049.2039 Via Francesco Sforza 15 alessandra.lanzone@mediolanum.it 20080 Basiglio MI – Italy Lisa Maxon http://www.mediolanum.com +39-02-9049.2997 lisa.maxon@mediolanum.it Luca Mirabelli +39-02-9049.2721 luca.mirabelli@mediol