Banca Generali S.p.a. · MIL:BGN
Banca Generali — FY2010 Earnings Presentation
36 slides from Banca Generali's earnings presentation, Mar 10, 2011
Slide 1: FY10 Results and 2011 Outlook
Banca Generali FY10 Results and 2011 Outlook Milan, March 10, 2011
Slide 2: Agenda
2010 Results Net Inflows, AUM and recruiting 2011 Strategic and Business Guidelines Closing Remarks 2 Banca Generali FY10 Results and 2011 Outlook
Slide 3: 2010 Results: a record year, once again!
FY2010 Results 2010 Results: a record year, once again! 82.2 +30% 63.2 FY10 Net Profit at €82.2 mln (+30%) +26% 22.2 4Q Net profit at €22.2 mln (+26%) 17.6 FY09 FY10 4Q09 4Q10 2010 results are particularly satisfactory as they: Significantly exceeded the 2009 net profit, that benefited from extraord
Slide 4: Solid capital position supports generous dividend
FY2010 Results Thanks to a solid capital position, Banca Generali can pay a generous dividend and maintain a “top-class” ranking among high-yield dividend stocks Dividend per Share (DPS) Dividend Yield 75% 80% 5.9% €0.55 (*) €0.45 5.2% 130% 84% 80% €0.18 3.6% €0.10 2.6% €0.06 0.9% 2006 2007 2008 201
Slide 5: Consolidated FY10 Profit and Loss Account
FY2010 Results Consolidated FY10 Profit and Loss Account (€ mln) 12M09 12M10 % Chg 12M09 12M10 LfL % Chg 1 (rep orted) (reported) (excl. GIL) (excl. GIL) Interest margin to be put in Net Interest Income 49.3 43.2 -12.2% 49.2 43.2 -12.1% context with the low level of interest Commission income 2 318.
Slide 6: Total revenues are becoming more and more sustainable
FY2010 Results Total revenues are becoming more and more sustainable Breakdown of Net Banking Income (LfL) Analysis of variations -1% 28.0 (16.8) 249.9 247.2 249.9 49.2 247.2 -12% 43.2 (20%) (18%) (7.9) (6.0) 190.8 (77%) +6% Market-related items 179.7 2009 Net comm. ex. Perform. Trading Interest 201
Slide 7: Excellent trend in gross commissions, sharp acceleration in management fees
FY2010 Results Excellent trend in gross commissions, with a sharp acceleration in management fees Breakdown of Gross Commissions (LfL) Management fees (LfL) +15.8% 232.8 (€ m) +40% 346.3 166.5 299.1 40.5 (12%) -29% 57.3 33.7 (19%) (10%) -26% 2009 2010 45.8 Recurring fees: (15%) 88% vs. 81% 232.8 at
Slide 8: Net commissions at +6% yoy, with stable pay-out
FY2010 Results Net commissions at +6% yoy, with stable pay-out (€ m) Net Commissions (LfL) Pay-out trend* (LfL) +6% 190.8 179.7 54.1% 49.4% 50.8% 2009 2010 2008 2009 2010 (*) excluding performance fees 8 Banca Generali FY10 Results and 2011 Outlook
Slide 9: Interest margin proved stable qoq
FY2010 Results Interest margin proved stable qoq, notwithstanding the sharp decrease in liquidity assets (switched into managed products) Assets in Current Account Net interest margin - qoq (€ m) ≈€600 mln were 2.3 10.6 n.m. 10.5 switched into -25% managed assets during 2010 1.8 1.7 4Q09 4Q10 2009 1
Slide 10: Excellent cost management continued in 2010
FY2010 Results Excellent cost management continued in 2010, with a decrease of 5% in operating expenses Operating Costs Breakdown (LfL) Staff costs G&A Expenses (€ m) (€ m) Cost-cutting results 79.2 fully met targets 75.7 65.4 declared in 2009 62.6 -5.3% and 2010 150.3 142.3 - 4.4% - 4.4% 43% 44% 20
Slide 11: Operating profitability is showing continuous progress
FY2010 Results Operating profitability is showing continuous progress (€ m) EBITDA (LfL) EBITDA margin +10 p.p 117.5 48% +8.2% 43% EBITDA margin and cost/income ratio 108.6 38% 25% have improved significantly and are at the sector’s best practice level 2009 2010 2007 2008 2009 2010 Cost/Income Ratio
Slide 12: One-off items in provisions and write-downs
FY2010 Results About 30% of 2010 provisions and write-downs relate to one-off items and reflect very conservative guidance in write-offs Provisions’ Breakdown (LfL) (€ m) 18.9 About 30% of 2010 provisions are one-off items, 15.9 related to: 6.1 set-up of a new severance indemnity fund for FAs, in li
Slide 13: Recurring Profitability further improving compared to last year
FY2010 Results Recurring Profitability further improving compared to last year AUM profitability (LfL)… … sharply up in 4Q 2010 1.76% 1.70% +12 bps 1.85% 1.73% 0.29% 0.18% 0.26% 26 bps (14%) related to 1.47% 0.30% market volatility 1.34% 1.22% 1.47% +12 bps 1.41% 1.23% +18 bps 159 bps (86%) with lim
Slide 14: Agenda
2010 Results Net Inflows, AUM and recruiting 2011 Strategic and Business Guidelines Closing Remarks 14 Banca Generali FY10 Results and 2011 Outlook
Slide 15: 2010 net inflows strongly increase, driven by managed assets
Net Inflows, AUM and recruiting 2010 net inflows strongly increase compared to 2009, driven by managed assets Net Inflows in Managed Assets Total Net Inflows 1,936 451 1,270 314 +139% Net inflows in managed assets more than +108% tripled, driven by an excellent product 1,171 offer and a good perform
Slide 16: Two key growth drivers: BG Selection Sicav and Life New Business
Net Inflows, AUM and recruiting Focus on the two key growth drivers of Banca Generali: BG Selection Sicav and Life New Business BG Selection – net inflows BG Selection - AUM (€ m) (€ m) 5,045 +55% +155% 1,487 3,255 583 2009 2010 2009 2010 Life New Business – net inflows (€ m) Life Insurance - AUM (€
Slide 17: Around €350 million net inflows in managed assets in first two months of 2011
Net Inflows, AUM and recruiting Already ≈€350 million of net inflows in managed assets in the first two months of 2011 Total Net Inflows Net Inflows in Managed Assets Net Inflows in BG Selection Tot. €342m Tot. €274m 197 Tot. €251m 148 145 145 81 126 43 106 125 120 24 (€ m) (€ m) (€ m) -18 -9 Jan Fe
Slide 18: Total assets reached €23.6 billion
Net Inflows, AUM and recruiting Total assets reached €23.6 billion, led by both excellent net inflows and solid performance Banca Generali Assets Breakdown Lux-based Assets (€ bn) (€ m) 5,759 Lux-based assets set for a further 23.6 +37% 714 sharp increase in 2011 +6% 4,219 5,045 22.2 6.6 (28%) 964 +
Slide 19: Excellent performance delivered to customers in 2010
Net Inflows, AUM and recruiting Once again in 2010, Banca Generali delivered an excellent performance to its customers Avg performance 2010 in managed assets Excellent performance delivery, 4.6% well above the Italian Mutual Related assets Fund industry +7.7% BG Selection € 5,045 million +7.7% +3.9%
Slide 20: BG Selection: good mix of investments with limited volatility
Net Inflows, AUM and recruiting BG Selection - A good mix of investments, able to deliver excellent results with limited volatility Performance 2010 Expected Return Emerging Markets 18.4% Developed Markets N°° of sub-funds:6; Global and AUM €1,197mln Thematic N°° of sub-funds:5; 11.3% Equity AUM €23
Slide 21: Recruiting – 2010 results in line with targets
Net Inflows, AUM and Recruiting Recruiting – 2010 results in line with targets FY10 Recruiting Results FY10 AUM/FA €m N. FAs AUM (€m) Avg. +4.2% Avg. AUM/FA AUM/FA €21.6 €21.6 m m 281 32.2 30.9 Banca Banca Generali Generali is is hiring hiring only only top top professionals: professionals: 46 46 si
Slide 22: Agenda
2010 Results Net Inflows, AUM and recruiting 2011 Strategic and Business Guidelines Closing Remarks 22 Banca Generali FY10 Results and 2011 Outlook
Slide 23: Italian households' financial assets offer growth opportunities
2011 Strategic and Business guidelines Size and composition of Italian households’ financial assets offer unparallel growth opportunities, yet to be exploited by Banca Generali Breakdown of the Italian Households Assets 1 CAGR (€ bn) Only 23% of financial 4.2% 3% assets are invested in 8,450 managed
Slide 24: Banca Generali strategic objectives
2011 Strategic and Business guidelines Banca Generali strategic objectives Organic growth is the first priority Further strengthen Upgrading the sustainability quality of the of the results networks Satisfied clients Cost control is the focus and of BG efficient operations 24 Banca Generali FY10 Res
Slide 25: Commercial actions in line with BG strategic targets
2011 Strategic and Business guidelines A set of commercial actions in line with BG strategic targets BG Strategic Objectives Planned Actions New clients: the “key word” to grow Exploiting positive word of mouth among clients Organic growth Leveraging on the proven track record of performance deliver
Slide 26: Exploiting word of mouth from proven track record in advisory
2011 Strategic and Business guidelines Exploiting positive word of mouth generated by a proven track record in investment advisory 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 1300 2 Launch of Rialancio, combining return and capital 4 Capital protection and guarantee. Then launch of BG Selectio
Slide 27: Organic growth: focus on new clients delivered promising results
2011 Strategic and Business guidelines Organic growth: Focus on new clients delivered promising results in 2010 New clients acquired in New clients split by Net New Money 2010 acquisition channel split by AUM size Net new 22% money generated by 18% Re-activation of inactive new clients > 8,000 new a
Slide 28: Network quality upgrading outpacing the competition
2011 Strategic and Business guidelines Network quality upgrading well underway, definitely outpacing the competition BG PB+RM 2010 22 PRIVATE PRIVATE 2010 Fideuram 2005 BG PB 2005 2005 Fideuram 2010 BG Group 2010 15 AUM/PF (mln/€) Azimut 2005 Fineco 2010 BG 2010 2010 10 AFFLUENT AFFLUENT Ras 2010 20
Slide 29: BG Selection vs. single funds
2011 Strategic and Business guidelines Leverage on the superior return/flexibility of Bg Selection vs. single funds to attract more assets Features Single funds Active asset allocation provided Asset allocation style Input provided fund by fund by the best international asset from FA and/or client m
Slide 30: Switch from administered assets and Rialancio into managed assets
2011 Strategic and Business guidelines Switch from administered assets and Rialancio into managed assets Around 30% of Banca Generali assets are still parked in liquidity-type products Rialancio Available also through instalment plans €933 m growing demand for instalment-type tools to smooth current
Slide 31: Agenda
2010 Results Net Inflows, AUM and recruiting 2011 Strategic and Business Guidelines Closing Remarks 31 Banca Generali FY10 Results and 2011 Outlook
Slide 32: Closing remarks: strategic guidelines for 2011
Closing remarks Closing remarks Strategic guidelines for 2011: Very simple… to continue and enhance what successfully achieved in 2010: Strengthening organic growth, exploiting the huge opportunity to capture new clients through the excellent existing networks Consolidating the success of the two pi
Slide 33: Winner of 2010 in financial advisor productivity
Closing remarks Banca Generali definitely was the winner of 2010 in FA’s productivity, both by quantity (Total Net Inflows) and quality of production (Net Managed Inflows) 2010 Total Net Inflows/FA 900 800 700 600 500 400 300 200 100 0 2010Net 2010 NetManaged ManagedInflows/FA Inflows/FA 1400 1200 1
Slide 34: Foundation of expected growth for 2011 and beyond
Closing remarks 2010 results lie on the positive sentiment of our networks… Do you plan to stay Ranking of Banca Generali Ranking of Banca Generali with Banca Generali 2010 2009 in the next … (out of the 9 players) (out of the 9 players) 1 year 1°° 5°° 1°° 5°° 3 years A A real real “breakthrough” “b
Slide 35: 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
Slide 36: 2011 Upcoming Corporate Events and Investor Relations Contacts
2011 Upcoming Corporate Events MARCH Su Mo Tu We Th Fr Sa Investor Relations Contacts 1 2 3 4 5 6 7 8 9 10 11 12 Giuliana Pagliari Approval of the 2010 results Head of Investor Relations 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Tel +39 02 6076 5548 E-mail:giuliana.pagliari@bancagenerali.it 27 28 29