Slide 1: 1H 2016 Results and Business Update
1H 2016 Results and Business Update Milan, 26 July 2016
Slide 2: Today's Agenda
Today’s Agenda 1H 2016 Results Net inflows, AUM and Recruiting Business update Closing Remarks Banca Generali 1H 2016 Results and Business Update 2
Slide 3: 1H 2016 results at a glance
1H 2016 results at a glance STRONGEST EVER NET INFLOWS TREND • Best interim net inflows ever totally unscathed by volatile financial markets in the period • Strongest ever acquisition of new customers with a clear private bias €2.9bn (+30%) • Robust recruiting activity both by number and quality of
Slide 4: 1H 2016 results: key takeaways
1H 2016 results: key takeaways * (€ m) 6M 15 6M 16 % Chg Enhanced * revenues sustainability: core revenues at 78% of total vs. 57% a year ago Net Interest Income 35.9 29.6 -17.6% • NII proving resilient thanks to higher volumes Gross fees 363.1 284.5 -21.7% more than offsetting record low bond yield
Slide 5: Enhanced core revenues sustainability (78% of total)
Enhanced core revenues sustainability (78% of total) Revenue breakdown Core revenues (% of total revenues) 263.8 258.8 167.5 (57%) 156.7 99.3 (78%) 35.9 29.6 25.7 26.3 19.6 (1) 128.7 (€ m) (43%) 45.3 (€ m) (22%) -129.1 -131.7 1H15 1H16 Net Interest Recurring fees Performance Fee expenses Trading & C
Slide 6: NII: Higher deposits vs. lower bond yields
NII: Higher deposits vs. lower bond yields Net Interest Income NII trend in line with guidance 35.9 3.1 29.6 • Strong increase in volumes (7.2bn +32% 32.8 29.6 yoy) driven by customers’ deposits (€ m) (€4.9bn, +37% yoy). Partecipation to TLTRO II adding €400m assets in 2Q 1H15 1H16 Core NII LTRO • F
Slide 7: Management fees resuming growth trend
Management fees resuming growth trend Recurring fees Quarterly management fees (management, entry, banking) 120.4 116.1 116.9 118.6 116.7 107.6 263.8 258.8 97.4 20.8 8.3 93.9 86.2 (€m) 81.8 +4% 78.9 237.1 72.8 75.5 223.6 (€m) 19.4 13.4 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Slide 8: Stable quarterly management fees
Stable quarterly management fees 116.7 120.4 116.1 116.9 118.6 107.6 97.4 86.2 93.9 3Y 81.8 72.8 75.5 78.9 CAGR Quarterly +18.2% management fees (€m) 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 40.8 41.7 43.2 38.3 39.8 39.8 32.3 35.1 27.8 28.8 29.7 30.9 27.4 3Y Total avg. CAGR a
Slide 9: Annualised fee-margin breakdown
Annualised fee-margin breakdown Entry fee margin Management fee margin linked to financial markets 1.15 1.16 1.09 1.12 1.12 1.12 0.11 0.11 0.11 0.09 0.06 0.04 (%) (%) 2H13 1H14 2H14 1H15 2H15 1H16 2H13 1H14 2H14 1H15 2H15 1H16 Banking fee & Performance fee margin trading commission margin 0.51 0.11
Slide 10: Operating costs inflated by extraordinary items
Operating costs inflated by extraordinary items Operating expenses Temporary spike in operating costs +9% 89.6 • Non-sales personnel costs were driven 81.9 by the increase in variable remuneration (LTIP) linked to the record results of the 34.8 32.8 previous year • Sales personnel costs were driven
Slide 11: Capital ratios: the only way is up
Capital ratios: the only way is up Excess Capital CET1/Tier1 Ratio Total Capital Ratio (phased-in) (phased-in) (€ m) 225 15.9% 16.0% 213 14.2% 14.3% 14.5% 12.2% 158 2014 2015 1H16 2014 2015 1H16 2014 2015 1H16 Excess capital further up to €225m (+27% YoY, +6% YTD) • Capital ratios on a B3 fully-load
Slide 12: Today's Agenda
Today’s Agenda 1H 2016 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 1H 2016 Results and Business Update 12
Slide 13: Relentless growth
Relentless growth Net Inflows trend +75% 2,917 2,236 1,667 1,530 1,142 807 429 435 433 419 525 213 305 228 354 €m 1Q April May June Total 1H 2014 2015 2016 Accelerated pace of growth driven by: • Secular growth of managed products and professional investment advice to protect and grow assets in a co
Slide 14: Strong acquisition of new customers
Strong acquisition of new customers Net Inflows from new customers No. of new customers 14,568 11,810 2,554 +23% 25% 1,499 15% 1H15 1H16 30% 15% Net Inflows/ customers 60% 175.3 55% €m 126.9 1H15 1H16 +38% € ‘000 Portfolio >500K Portolio 250K-500K Portfolio <250K 1H15 1H16 Banca Generali 1H 2016 Res
Slide 15: Growing focus on 'wrapper' solutions
Growing focus on ‘wrapper’ solutions 1H16 Net Inflows mix ‘Wrappers’ growing fastest (58% of total managed products) 584 530 525 247 113 416 429 433 230 260 193 453 140 272 279 325 129 417 (€ m) 265 42 131 144 150 108 Jan Feb Mar Apr May June Jan Feb Mar Apr May Jun (€ m) Banking products Managed pr
Slide 16: Well-balanced product mix
Well-balanced product mix Net inflows: Total Assets: Q1 vs. Q2 2015 YE vs. 1Q16 vs. 2Q16 1,530 1,387 41.6 42.5 43.6 15% 35% 45% 44% 44% 40% 27% 31% 32% 32% 45% 38% (€ m) (€bn) 24% 24% 24% 1Q16 2Q16 2015 YE 1Q16 2Q16 Banking products Traditional life policies Banking products Traditional life policie
Slide 17: Solid customer asset trend
Solid customer asset trend 2016 YTD asset breakdown Steady as it goes +3% 43.6 42.5 10.4 • Managed products steady at 76% of 10.5 total assets in a contest of volatile 3.6 3.8 financial markets during 1H 2016 4.5 4.8 • Clear advance of wrappers solutions (€5.3bn, +22% YTD, +41% YoY) amongst 13.6 14.
Slide 18: Resilient Lux-based assets
Resilient Lux-based assets Lux-based SICAVs assets SICAVs: Asset split 11.2 11.4 3% 2% 10% 13% 14% 13% 9.1 9.0 45% (€ bn) 2.1 2.4 Equity EM Bond Multi-asset funds Equity Global & Thematic 1H15 1H16 Equity DM Real assets Liquidity Data as of 30 June 2016 Banca Generali 1H 2016 Results and Business Up
Slide 19: Resilient assets thanks to a defensive mix
Resilient assets thanks to a defensive mix Total Asset change YTD Asset Mix 2.9 (0.9) 43.6 Equity; 41.6 20.0% Life segregated funds; 32.0% Fund performance already fully reassorbed as of July 15 Alternatives & others; 7.0% Cash, monetary Govt & funds & Corp; 26.0% equivalents; 15.0% (€bn) Data as of
Slide 20: Recruiting of high profile professionals
Recruiting of high profile professionals Net Inflows mix: 1H 2016 No. of new recruits From retail banks From other FA networks 126 48% 52% 102 81 76 organic growth recruiting last 12M 92 53 75 1H 2016 Recruiting: FAs vs. RMs1 50 62 35 20% 31 27 34 18 14 2012 2013 2014 2015 1H16 80% Financial Advisor
Slide 21: Today's Agenda
Today’s Agenda 1H 2016 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 1H 2016 Results and Business Update 21
Slide 22: A distinctive value proposition
A distinctive value proposition CHANGING NEEDS… …LEADING TO A NEW AND MORE COMPREHENSIVE APPROACH Wealth concentration Corporate Risk assesment vs. Return Real Estate Finance Liquid vs. illiquid assets Demographic trends Family Investment Protection Advisory Family protection Art Digital revolution
Slide 23: Focus on Investment Advisory
Focus on Investment Advisory Insurance ‘Wrapper’ Financial ‘Wrapper’ A la carte Products PRODUCTS Open Architecture Tools SERVICES Services OPERATIONS & OPTIMIZED INVESTMENT SOLUTIONS Banca Generali 1H 2016 Results and Business Update 23
Slide 24: 'Stable Portfolio': how it works
‘Stable Portfolio’: how it works Alternative funds picking through a portfolio optimizer developed in-house with the support of quantitative consultants • Analysis of historical drawdown 1 FUNDS • Stress test of financial markets • At least 3 to 5 years since inception SELECTION • Minimized portfoli
Slide 25: Closing Remarks
1H 2016 Results Net Inflows, AUM and Recruiting Business update Closing Remarks Banca Generali 1H 2016 Results and Business Update 25
Slide 26: Putting wind in our sails
Closing remarks Putting wind in our sails Strong business trend confirmed in July, with a growing contribution from new managed solutions Successfully attracting top professionals in the industry in view of a compelling and distinctive value proposition Ready for launching digital collaboration in 2
Slide 27: 2016 upcoming corporate events
2016 upcoming corporate events NOVEMBER Su Mo Tu We Th Fr Sa Investor Relations Contacts 1 2 3 4 5 Approval of 9M 2016 results 6 7 8 9 10 11 12 Investor Conference call 13 14 15 16 17 18 19 Giuliana Pagliari 20 21 22 23 24 25 26 Investor Relations Officer 27 28 29 30 Phone +39 02 6076 5548 Mobile +3
Slide 28: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Stefano Grassi) 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 a