Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — FY2011 Earnings Presentation
42 slides from Banca Mediolanum SpA's earnings presentation, Mar 22, 2012
Slide 1: FY2011 Results
1 March 22, 2012 FY2011 RESULTS 2 Table of Contents FY 2011 Group p Results 3 FY 2011 Domestic Market Results 13 Foreign Markets Results FY 2011 Foreign 36 FY 2011 Group p Embedded Value 41 Business Update p 54 Mediolanum Facts 64
Slide 2: Income Statement - Group
3 FY 2011 Group Results FY 2011 4 Group Income Statement - Group € mn FY11 FY10 Change Net premiums written 9,543.4 9,123.5 +5% Amounts paid & change in technical reserves (9,505.0) (9,082.4) +5% Life revenues ex-commission 38.4 41.1 -7% Entry fees 98.5 116.9 -16% Management fees 417.8 370.8 +13% Pe
Slide 3: Impact of unrealised & one-off items on P&L
FY 2011 5 Group Impact of unrealised & one-off items on P&L € mn 2011 Net Income felt the impact of the one-off impairments (Greek govies & the Mediobanca stake) and the temporary, unrealised losses on investments at fair value. Neutralising this impact, net income comes out to be higher than 2010 F
Slide 4: Q4 Income Statement; Assets under Administration
FY 2011 7 Group Q4 Income Statement € mn Q411 Q410 Change Net premiums written 2,477.3 2,315.8 +7% Amounts paid & change in technical reserves (2,469.5) (2,304.3) +7% Life revenues ex-commission 7.8 11.5 -32% Entry fees 20.1 30.3 -34% Management fees 103.8 99.9 +4% Performance fees 61.4 55.0 +12% Ba
Slide 5: Assets under Administration; Dividend Proposal
FY 2011 9 Group Assets under Administration € mn 31/12/11 31/12/10 Change Life 13,678.5 15,068.7 -9% 'Freedom' Life Policies 4,503.8 5,025.3 -10% Asset management 19,725.3 19,509.2 +1% Banking* 8,925.6 7,195.6 +24% Consolidation adjustments (8,966.0) (9,285.2) -3% Italy - Banca Mediolanum 37,867.2 3
Slide 6: Dividend Payout; 2012 Outlook
FY 2011 11 Group Dividend Payout € mn 120% 88% 83% 70% 72% 69% 57% 60% 62% 62% 65% 50% 56% 55% 51% 51% 233 224 212 217 224* 87 78 67 107 110 141 129 131* 115 39 103 21 50 88 82 10-year 75 46 31 146 146 146 67 10 CAGR 54 60 38 34 114 +1% 26 102 27 80 110 110 81 69 73 73 41 50 27 34 96 97 98 99 00 01
Slide 7: Income Statement - Domestic
13 FY 2011 Domestic Market Results FY 2011 14 Domestic Market Income Statement - Domestic € mn FY11 FY10 Change Net premiums written 9,400.9 9,003.2 +4% Amounts paid & change in technical reserves (9,381.5) (8,977.5) +4% Life revenues ex-commission 19.4 25.6 -24% Entry fees 94.5 112.6 -16% Managemen
Slide 8: Income Statement by Quarter; Net Inflows
FY 2011 15 Domestic Market Income Statement by Quarter € mn Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Life revenues ex-commission 5.2 9.6 3.6 7.3 7.3 7.8 2.5 1.9 Entry fees 28.1 32.4 22.8 29.3 25.3 25.9 24.1 19.2 Management fees 82.2 87.7 89.9 95.8 100.7 101.3 99.7 99.8 Performance fees 51.3 15.2 27.3
Slide 9: Total Net Inflows by Group: Mediolanum in the top of the ranking
FY 2011 17 Domestic Total Net Inflows by Group: Market Mediolanum in the top of the ranking Italian Networks - € thousands Jan-Dec 2011 December 2011 Total Net Inflows Into Total Net Inflows Into Net Inflows Managed Assets Net Inflows Managed Assets Banca Mediolanum 2,350,085 660,446 443,784 111,201
Slide 10: Profit by Segment; Asset Management Commission Income
FY 2011 19 Domestic Market Profit by Segment € mn FY11 FY10 Change Asset Management 123.8 107.7 +15% Life 56.1 130.8 -57% Banking -41.6 38.8 n.s. Other -46.5 9.3 n.s. PROFIT BEFORE TAX 91.8 286.6 -68% FY 2011 20 Domestic Asset Management Segment Market Commission Income € mn Asset Management Total C
Slide 11: Asset Management Gross and Net Inflows
FY 2011 21 Domestic Asset Management Segment Market Gross Inflows € mn - U-L assets not included FY11 FY10 Change 'Best Brands' funds of funds (IRL) 2,920.0 2,336.1 +25% 'Challenge' mutual funds (IRL) 837.6 1,533.8 -45% 'Fondi Italia' mutual funds (ITA) 606.3 965.9 -37% 'Real estate' fund (ITA) 45.7
Slide 12: Asset Management Assets
FY 2011 23 Domestic Asset Management Segment Market Assets € mn - including U-L assets 31/12/11 31/12/10 Change 'Best Brands' funds of funds (IRL) 5,398.3 4,044.2 +33% 'Portfolio' funds of funds (IRL) 680.1 806.3 -16% 'Challenge' mutual funds (IRL) 11,221.2 12,046.7 -7% Funds of Hedge Funds (IRL) 26
Slide 13: Ranking of Italian A.M. Groups by Mutual Funds Assets
FY 2011 25 Domestic Ranking of Italian A.M. Groups Market by Mutual Funds Assets June 2007 Dec. 2007 Dec. 2008 Dec. 2009 Dec. 2010 Dec. 2011* Jan. 2012* 1. Eurizon Intesa Sanpaolo Intesa Sanpaolo Intesa Sanpaolo Intesa Sanpaolo Intesa Sanpaolo Intesa Sanpaolo 2. Pioneer Pioneer Pioneer Pioneer Pione
Slide 14: Life Segment Revenues and Commission Income
FY 2011 27 Domestic Life Segment Market Revenues € mn FY11 FY10 Change Premiums less change in reserves 19.4 25.6 -24% Commission income 254.1 270.7 -6% Net Interest Income 34.9 14.2 +146% Net income on investments at fair value (33.0) 7.7 n.s. o/w unrealised losses (30.7) (21.2) +45% Net financial
Slide 15: Life Segment Amounts Paid; Surrender Rate
FY 2011 29 Domestic Life Segment Market Amounts Paid in detail € mn - ex 'Freedom' Life Policies FY11 FY10 Change Claims 69.4 76.0 -9% Coupons 84.1 155.0 -46% Maturities 1,248.1 1,187.7 +5% o/w index-linked 970.1 931.8 +4% Surrenders 916.6 919.3 -0% AMOUNTS PAID 2,318.2 2,337.9 -1% FY 2011 30 Domest
Slide 16: Life Policyholders' Assets; Banking Revenues
FY 2011 31 Domestic Life Segment Market Policyholders' Assets € mn 31/12/11 31/12/10 Change Traditional 1,350.7 1,331.5 +1% Index-linked 3,171.7 4,428.4 -28% Unit-linked pension plans 3,087.4 2,930.1 +5% Unit-linked endowment policies 3,484.3 3,736.0 -7% Unit-linked investment policies 2,584.4 2,642
Slide 17: Banking Administered Assets; Bank Accounts
FY 2011 33 Domestic Banking Segment Market Administered Assets* € mn 31/12/11 31/12/10 Change Cash deposits 5,489.2 3,882.1 +41% Repurchase agreements 211.2 657.8 -68% Mediolanum bonds 487.6 334.1 +46% 3rd-party structured bonds 805.9 833.5 -3% Other securities under custody 1,931.7 1,488.3 +30% BAN
Slide 18: Banca Esperia Highlights
FY 2011 35 Domestic Banca Esperia (100%) Market Highlights € mn FY11 FY10 Change Profit Before Tax 4.9 2.6 +90% Net Income 1.4 1.4 +4% o/w Mediolanum share 0.7 0.7 +4% Assets under Administration 12,817 12,745 +1% % in Managed Assets 62.6% 75.5% -17% Net Inflows 603 1,393 -57% o/w Managed Assets Inf
Slide 19: Spain Highlights; Germany - B. A. Lenz
FY 2011 37 Foreign Spain Markets Highlights € mn FY11 FY10 Change Net Income 3.9 0.6 n.s. Managed Assets 986.8 991.2 -0% Administered Assets 594.5 630.6 -6% Total Assets 1,581.2 1,621.9 -3% Gross Inflows into Managed Assets 291.1 270.0 +8% Net Inflows into Managed Assets 93.2 43.5 +114% Net Inflows
Slide 20: Germany - Gamax and Total Highlights
FY 2011 39 Foreign Germany - Gamax Markets Highlights € mn FY11 FY10 Change Net Income 1.6 (1.1) n.s. Assets under Administration 204.8 238.3 -14% Gross Inflows 36.0 43.5 -17% Net Inflows 1.1 2.7 -61% FY 2011 40 Foreign Germany - Total Markets Highlights € mn FY11 FY10 Change Net Income (11.5) (11.4
Slide 21: Group Embedded Value: MCEV-compliant Methodology
41 FY 2011 Group Embedded Value FY 2011 42 Group EV MCEV-compliant Methodology Further details available in the supplementary disclosure on the Mediolanum website Compliant with CFO Forum MCEV Principles MCEV fully adopted for covered business (Life Insurance) Asset Management and Banking Consistent
Slide 22: Embedded Value
FY 2011 43 Group EV Embedded Value € mn Value of In-Force business 3,233 3,1223,164 3,072 Adjusted 2,957 shareholders’ equity 2,747 2,493 2,514 2,029 1,7681,816 1,977 1,496 1,283 707 745 484 534 595 770 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 EEV MCEV* * MCEV for Life business; EEV for
Slide 23: Embedded Value Earnings; EV Earnings Components (1)
FY 2011 45 Group EV Embedded Value Earnings € mn FY11 FY10 Change in EV over the year (643)* 161 Dividends paid 103 110 Other capital movements (3) (4) EV Earnings (543) 267 *with respect to FY10R FY 2011 46 Group EV EV Earnings Components (1) Earnings on Initial EV € mn FY11 FY10 Expected return on
Slide 24: Operating Experience Variances; Value Added by New Business
FY 2011 47 Group EV Earnings on Initial EV: Operating Experience Variances € mn FY11 Performance fees 40 A.M. Persistency / paid-ups (6) Life Persistency / paid-ups (42) o/w Individual pension plans (13) o/w Endowment policies (27) o/w Investment policies (3) o/w Index-linked policies 1 Asset Mix 11
Slide 25: Life and A.M. New Business Margins (%PVNBP)
FY 2011 49 Group EV Life New Business Margins (% %PVNBP*) Domestic Market € mn FY11 FY10 Change Unit-linked Pension Plans 4.2% 7.0% -40% Value of New Business - 'moment of sale' 11 29 -62% PVNBP 266 419 -36% Other Unit-linked policies 2.0% 5.2% -61% Value of New Business - 'moment of sale' 9 25 -65%
Slide 26: Life and A.M. New Business Margins (%APE)
FY 2011 51 Group EV Life New Business Margins (%APE*) Domestic Market € mn FY11 FY10 Change Unit-linked Pension Plans 57.4% 84.7% -32% Value of New Business - 'moment of sale' 11 29 -62% Recurring premiums 16 33 -50% Single premiums (inbound portability) 28 28 -2% APE 19 35 -44% Other Unit-linked po
Slide 27: Spain In-force & New Business Value
FY 2011 53 Group EV Spain In-force & New Business Value € mn FY11 FY10R FY10 VIF Life Business 37 27 40 VIF A.M. Business 18 14 14 Value of In-force Business 55 41 54 Life New Business 12 8 8 A.M. New Business 2 2 2 Value added by New Business 14 10 10 54 Business Update
Slide 28: 'Freedom+' Current Account; 'InMediolanum' Deposit Account
Business 55 Update ‘Freedom+’ Current Account The New Generation launched March 2012 Now a pure banking product Maintains its role as strategic tool to acquire high quality customers through competitive remuneration of liquidity Fiscal advantages of the existing bank account + life policy combo grea
Slide 29: Challenge 'Solidity & Return'; 'Opportunities' Collection
Business 57 Update Challenge ‘Solidity & Return’ The New Edition of a Best Seller launched January 2012 New fund replacing the very successful ‘Challenge Total Return’, now pays a coupon twice a year while retaining all its winning features… Diversification: 250 securities, 30 issuers, 15 countries
Slide 30: 'InMediolanum' and 'Freedom' Account Results
Business 59 Update ‘InMediolanum’ Results as at 31/12/2011 – includes ‘InMediolanum Plus’ New customers 17,780 o/w direct access 41% o/w through Family Banker 59% Total balance from new customers (€ mn) 459 Existing customers 57,105 Total balance from existing customers (€ mn) 1,248 o/w new money 54
Slide 31: 'Freedom' Account Customer Assets Development
Business 61 Update ‘Freedom’ Account Customer Assets Development Avg assets as at 31.12.11 of a sample* of new ‘Freedom’ account holders (€ 4.9 bn in total assets) Customers acquired in the first 6 months: avg. of 42,600 € in high-margin products (38% of their assets) Mar '09 € 134,604 June '09 Mont
Slide 32: Total Net Inflows by Group, January 2012
Business 63 Update Total Net Inflows by Group: Mediolanum in the top of the ranking Italian Networks - € thousands January 2012 Total Net Inflows Into Net Inflows Managed Assets Banca Mediolanum 276,203 70,692 Banca Generali 245,031 87,615 Unicredit (Finecobank) 139,813 15,048 Azimut 89,186 103,060
Slide 33: Mediolanum Group Structure and Integrated Business Model
Mediolanum 65 Facts Mediolanum Group Structure as at 31.01.12 40.4% 36% Doris Group Fininvest Mediolanum 3.38% (directly & through Mediobanca Mediolanum Vita) 100% Banca Mediolanum Banking Group Mediolanum* Mediolanum 51% Gestione Fondi 49% Mediolanum 50% 100% Vita Banca % 51% Mediolanum Esperia 50%
Slide 34: Net Profit; Family Banker Network
Mediolanum 67 Facts Net Profit € mn 233 224 224* 217 212 141 129 131* 115 103 88 82 75 67 60 54 49 38 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 * 2008 & 2010 Adjusted Net Income ex ‘Lehman Bros.’ Mediolanum 68 Facts Banca Mediolanum Family Banker Netwo
Slide 35: Banca Mediolanum Customers and Bank Accounts
Mediolanum 69 Facts Banca Mediolanum Customers Primary account holders (thousands) 915 921 897 894 886 840 761 778 785 798 715 619 465 495 386 410 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mediolanum 70 Facts Banca Mediolanum Bank accounts Thousands March 2005 ‘
Slide 36: Total Net Inflows Trend
Mediolanum 71 Facts Total Net Inflows Trend € mn – Domestic Market 8000 Banca Esperia (Mediolanum’s share) Banca Mediolanum 1,144 6000 5,795 697 4000 203 301 3,437 3,285 2000 3,225 3,059 673 1,106 2,610 557 797 351 2,280 1,544 1,265 1,546 1,805 1,689 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 37: Net Inflows into Mutual Funds vs. Peers; MED.MI Total Return Index
Business 73 Update Net Inflows into Mutual Funds Mediolanum vs. Peers Italian A.M. Groups – € mn 2008-2011 Mediolanum 6,452 Generali 1,504 Azimut 986 Fideuram -3,631 source: Assogestioni Mediolanum 74 Facts MED.MI Total Return Index* 1400 1200 1000 800 600 400 200 0 * includes dividend reinvestment,
Slide 38: Integrated & Comprehensive Retail Banking Model
Mediolanum 75 Facts The Mediolanum Integrated & Comprehensive Retail Banking Model Information Automated TV-based T Telephone services (Teletext) Services (VRU / SMS) Mobile devices Entire ATM (PDA / Smartphone) network Cash logistics Internet web site 18,000 3rd-party branches Low- added-value CUST
Slide 39: Our Culture, Our Competitive Advantage
Mediolanum 77 Facts Our Culture, 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 that provides solutions according to
Slide 40: Mediolanum Approach vs. Open Architecture
Mediolanum 79 Facts The Mediolanum Approach vs. Open Architecture ‘Best Brands’ family of Funds of branded Funds unveiled in April 2008 Offers our customers the opportunity to further diversify their investments This is not the ‘Open Architecture’ approach It is impossible for a private investor to
Slide 41: Corporate TV Channel; Disclaimer
Mediolanum 81 Facts Training & Communication: Corporate TV Channel A proprietary state-of-the-art tool established in 1989 Encrypted programs to train, motivate & communicate with our Family Bankers - Company news - Product information - Online training course support - Inspirational thoughts for pe
Slide 42: Investor Relations Contacts
83 Investor Relations Contacts e-mail: investor.relations@mediolanum.it $OHVVDQGUD/DQ]RQH WHO HPDLODOHVVDQGUDODQ]RQH#PHGLRODQXPLW /LVD0D[RQ WHO HPDLOOLVDPD[RQ#PHGLRODQXPLW /XFD0LUDEHOOL WHO HPDLOOXFDPLUDEHOOL#PHGLRODQXPLW