Banca Generali S.p.a. · MIL:BGN

Banca Generali — FY2007 Earnings Presentation

29 slides from Banca Generali's earnings presentation, Mar 13, 2008

  1. Slide 1: FY-07 Results & 2008-09 Outlook

    FY-07 Results & 2008-09 Outlook Built Around the Future Giorgio Girelli, CEO Milan, March 13, 2008

  2. Slide 2: Today's Agenda

    Today’s Agenda I. FY 2007 RESULTS II. 2008 MAIN GUIDELINES III. STRATEGIC OUTLOOK 2 Banca Generali FY-07 Results & 2008-09 Outlook

  3. Slide 3: Banca Generali: a Top Player in the best performing Distribution Channel

    I. FY 2007 RESULTS Banca Generali: a Top Player in the best performing Distribution Channel… 57.7 Net Inflows in Mutual Funds and Sicavs by distribution channel (€ bn) 20.0 17.0 9.7 9.8 9.3 7.4 4.8 2.6 2.5 1.3 (0.9) (3.2) (2.4) (8.9) (9.5) (25.3) (24.1) (50.4) (71.5) (1) 2000 2001 2002 2003 2004 200

  4. Slide 4: Increasing Assets and Net Inflows even under unfavorable Market Conditions

    I. FY 2007 RESULTS … Increasing Assets and Net Inflows even under unfavorable Market Conditions AUM AUM Net Net Inflows Inflows (€ bn) (€ m) 23.7 24.5 2,309 2,372 ƒ 10.3% market share in 18.3 AUM 1,561 ƒ Resilient Net Inflows in a difficult market, with excellent growth 2005 2006 2007 2005 2006 2007

  5. Slide 5: FY 2007 Results at a Glance (1/2): Further and steady progress on profitability

    I. FY 2007 RESULTS FY 2007 Results at a Glance (1/2): Further and steady progress on profitability improvement (1) AUM AUM Profitability Profitability Cost Cost Income Income Ratio (2) Ratio (2) 1.43% + 0.09 p.p. + 0.09 p.p. 1.25% 1.34% -3.9 p.p. -6.7 p.p. 70.1% +1.1 p.p. 63.4% 64.5% + 0.06 p.p. + 0

  6. Slide 6: FY 2007 Results at a Glance (2/2): Jump in Profits and Dividend

    I. FY 2007 RESULTS FY 2007 Results at a Glance (2/2): Jump in Profits and Dividend (1) EBITDA EBITDA Net Net Profit Profit and and Dividend Dividend (€ m) (€ m) +17% As announced, + 80% dividends paid on 82.0 Adjusted Net Profit 69.8 25.3 66.3 15.3 14.0 34.8 1.7 2005 2006 2007 2007 (Adj) 30.8 60.2 5

  7. Slide 7: Non-Recurring Items Affecting FY 2007 Results

    I. FY 2007 RESULTS Non-Recurring Items Affecting FY 2007 Results ƒƒ Unrealised Unrealised capital capital losses losses at at fair fair value value on on trading trading investment investment portfolio portfolio at at 2007 2007 Year- Year- Adjustment Adjustment for for End End amounted amounted toto

  8. Slide 8: FY 2007 Consolidated Profit & Loss

    I. FY 2007 RESULTS FY 2007 Consolidated Profit & Loss (€ m) FY06 (LfL) FY07 % Chg (YoY) FY07 (Adj) % Chg (YoY) Net Interest Income 29,1 43,1 48,1% 43,1 48,1% ƒ Net Interest Income up 48%, thanks to Commission income 279,9 308,4 10,2% 308,4 10,2% successful banking strategy Commission expense -129,5

  9. Slide 9: Investment Portfolio: Less Volatility on P&L

    I. FY 2007 RESULTS Investment Portfolio: Less Volatility on P&L… € 3.3 bn € 3.5 bn € 4.0 bn 31.12.06 30.09.07 31.12.07 Actions taken to reduce volatility: ƒ Higher volatility bonds (about € 100m) were sold in the last quarter, with a realised capital loss of € 5.6m 94% 64% (2.1) 94% 66% (2.3) 94% 67

  10. Slide 10: Investment Portfolio: even more Defensive Profile

    I. FY 2007 RESULTS Investment Portfolio: …even more Defensive Profile Investment Investment Portfolio Portfolio 31.12.06 30.09.07 31.12.07 4% 3% Equities Funds/Sicav 2% 2% Equities Funds/Sicav 0.1% 1.7% Equities Funds/Sicav (0.003) (0.05) (0.07) (0.05) (0.07) (0.07) 93% 96% 98.2% (2.0) Bonds (2.2) B

  11. Slide 11: Steady Revenues driven by Recurring Items

    I. FY 2007 RESULTS Steady Revenues driven by Recurring Items Breakdown Breakdown of of Net Net Banking Banking Income Income Breakdown Breakdown of of Gross Gross Commissions Commissions + 4.1 % (€ m) (€ m) 202.3 194.3 + 10% 308.4 15% 186.6 21% 279.9 Net Interest Income 20% 23% Front Fees 19% 77% 69

  12. Slide 12: Cost Control, a Core Strength of Banca Generali

    I. FY 2007 RESULTS Cost Control, a Core Strength of Banca Generali Operating Operating Costs Costs Breakdown Breakdown Operating Operating Costs/AUM Costs/AUM (€ m) - 4.4% 141.2 135.0 Staff 42% 0.67% - 0.4 p.p. 42% 0.63% - 0.8 p.p. 0.55% G&A expenses 52% 52% 19.3 22.3 24.6 Amortisation 6% 6% 2006 (

  13. Slide 13: Today's Agenda

    Today’s Agenda I. FY 2007 RESULTS II. 2008 MAIN GUIDELINES III. STRATEGIC OUTLOOK 13 Banca Generali FY-07 Results & 2008-09 Outlook

  14. Slide 14: Our planned Actions to cope with a tough 2008

    II. 2008 MAIN GUIDELINES Our planned Actions to cope with a tough 2008 22 STRATEGIC STRATEGIC Gathering Gathering New New Assets Assets Increasing Increasing Asset Asset Profitability Profitability TARGETS TARGETS Defensive Defensive Products: Products: Asset Asset Transformation: Transformation: ƒƒ

  15. Slide 15: Gathering New Assets: Commercial Policy pushing on defensive products

    II. 2008 MAIN GUIDELINES Gathering New Assets: Commercial Policy pushing on defensive products Banking Products ƒ Well diversified range with interest rate up to 80% 1M Bank Bank Leverage: Leverage: only only 36% 36% Euribor (cap €50k) Bank Bank Accounts Accounts of of our our clients clients holds

  16. Slide 16: Gathering New Assets: Focusing on selective Recruiting

    II. 2008 MAIN GUIDELINES Gathering New Assets: Focusing on selective Recruiting Networks Who we are looking for ƒƒ FAs FAs from from competing competing networks networks with with AUM> AUM> €15 €15 mln mln ƒƒ High High standing standing bank bank employees employees Private Banker and CRO* ƒƒ Priva

  17. Slide 17: Increasing Asset Profitability (1/2): A new Lux Company operating since March 1, 2008

    II. 2008 MAIN GUIDELINES Increasing Asset Profitability (1/2): A new Lux Company operating since March 1, 2008 New New Luxembourg-based Luxembourg-based Management Management Company Company 100% owned by Banca Generali 100% owned by Banca Generali To To improve improve Business Business Flexibility

  18. Slide 18: Increasing Asset Profitability (2/2): Key Benefits of the new Lux Company

    II. 2008 MAIN GUIDELINES Increasing Asset Profitability (2/2): Key Benefits of the new Lux Company Which Which benefits benefits from from Luxembourg Luxembourg venture? venture? 11 Higher Higher flexibility flexibility in in product product development development 22 Fiscal Fiscal benefits benefits

  19. Slide 19: Increasing Asset Profitability (1/3): New Asset Management Product Range

    II. 2008 MAIN GUIDELINES Increasing Asset Profitability (1/3): New Asset Management Product Range 3 different approaches Investment Diversification Protection Wide Product Range 13 13 Traditional Traditional SICAV SICAV Lines Lines 14 14 Luxembourg Luxembourg Funds Funds ofof Funds Funds 77 Capital

  20. Slide 20: Increasing Asset Profitability (2/3): Actions to drive Asset Transformation

    II. 2008 MAIN GUIDELINES Increasing Asset Profitability (2/3): Actions to drive Asset Transformation Existing portfolio New Products 6.1 € bn Retail Retail Funds Funds and and Sicav Sicav 4.1 € bn Discretionary Discretionary Accounts Accounts (GPF) (GPF) 5.6 € bn Banking Banking Products Products 1.

  21. Slide 21: Increasing Asset Profitability (3/3): Wide Range of Life Products

    II. 2008 MAIN GUIDELINES Increasing Asset Profitability (3/3): Wide Range of Life Products Source Traditional Life Insurance Products Traditional Mixed Policies Old life insurance Old and and Expiring Expiring Policies Policies Improving Asset Quality Capital Protected Banking Banking Products Produ

  22. Slide 22: BG Advanced Business Model

    II. 2008 MAIN GUIDELINES BG Advanced Business Model… Best-in-class Best-in-class In-House In-House Product Product Offer Offer Objective Objective Consulting Consulting Service Service 1.Study 2.Strategy 3.Portfolio No. No. Products Products % 5/4/3 (1) % 5/4/3 2008 2008 star star rated rated In In

  23. Slide 23: combined with constant FA Network upgrading

    II. 2008 MAIN GUIDELINES … combined with constant FA Network upgrading (1) (1) AUM/Financial AUM/Financial Advisor Advisor Number Number of of Financial Financial Advisors Advisors 12,5 259 BSI 11,9 11,5 1,534 BG 10,5 11,0 9,5 2,006 1,884 1,793 8,5 Top 7,5 20% 29% 33 % 7,9 (>10 € m) 6,5 Middle 40% 6

  24. Slide 24: Today's Agenda

    Today’s Agenda I. FY 2007 RESULTS II. 2008 MAIN GUIDELINES III. STRATEGIC OUTLOOK 24 Banca Generali FY-07 Results & 2008-09 Outlook

  25. Slide 25: BG Strategy to face 2008 challenges

    III. STRATEGIC OUTLOOK BG Strategy to face 2008 challenges 2008 2008 Strategy Strategy Developing Developing Assets Assets and and Profitability Profitability BG Market Market Outlook Outlook BG Mission Mission even even Considering Considering aa Difficult Difficult Market Market Landscape Landscap

  26. Slide 26: We are Confident in Delivering 2007-09 Strategic Plan Targets

    III. STRATEGIC OUTLOOK We are Confident in Delivering 2007-09 Strategic Plan Targets Ongoing Ongoing and and consolidated consolidated trends… trends… …combined …combined with with brand brand new new actions actions ƒ Steady Assets Growth ƒ Possible performance fee increase ƒ Increasing Assets Prof

  27. Slide 27: What's Next

    What’s Next What’s Next •• Tuesday Tuesday May May 6, 6, 2008: 2008: 11:00 11:00 AM AM CET CET Review Review of of Q1 Q1 2008 2008 accounts accounts 4:00 4:00 PM PM CET CET Conference Conference Call Call •• Wednesday Wednesday July July 30, 30, 2008: 2008: 10:00 10:00 AM AM CET CET Review Review of

  28. Slide 28: Investor Relations Team

    Investor Relations Team Giuliana Giuliana Pagliari Pagliari Investor Investor Relations Relations Officer Officer Tel Tel +39 +39 02 02 6076 6076 5548 5548 Federico Federico Mangiagalli Mangiagalli Tel Tel +39 +39 02 02 6076 6076 5545 5545 Fax Fax +39 +39 02 02 6682 6682 854 854 E-mail E-mail invest

  29. Slide 29: Disclaimer

    Disclaimer The manager responsible for preparing the company’s financial reports (Giancarlo Fancel) declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law of Finance, that the accounting information contained in this press release corresponds to the document results, books and

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