Banca Mediolanum Spa · MIL:BMED
Banca Mediolanum Spa — FY2001 Earnings Presentation
28 slides from Banca Mediolanum Spa's earnings presentation, 2002
Slide 1: FY 2001 Consolidated Reclassified Results
ous MEDIOLANUM FY 200] Consolidated Reclassified Results as at December 31, 2001 Agenda Core’ Business — Results & Embedded Value —S = a y = Page 1
Slide 2: FY 2001 Assets under Administration
FY 2001 Assets under Administration Core’ Business Euro millions Life Reserves 6,661.0 6,162.7 +8.1% Mutual Funds & MLA. 9,645.8 8,734.8 +10.4% Bank Deposits 4,817.4 3,316.5 +45.3% Institutional Assets 428.7 286.3 +49.7% Consolidation Adjustments -3,232.5 = -2,761.7' -17.0% CORE BUSINESS ASSETS) 18,
Slide 3: Life Insurance Assets and Bank Deposits
Life Insurance Assets Core’ Business Life Reserves > Traditional > Index-linked > Unit-linked Life Reserves in own Mutual Funds Euro millions 6,661.0 6,162.7 +8.1% 2,015.8 2,350.7 14.2% 1,912.7 1,573.7 +21.5% 2,732.6 2,238.3 +22.1% 29074 -2,5254 +15.1% Bank Deposits Core’ Business Cash under Deposit
Slide 4: Mediolanum AUA vs. Italian Household Assets
Mediolanum AUA vs. Italian HH Assets Mediolanum AUA (‘Core’ Business) & Mediolanum <==exmem Italian Household Assets Market Share FY 2001 Bank Account Growth Core’ Business 200 vs. 31.12.01 Active Bank Accounts | 219,144 (— 7, 297,252 + 36% Page 4
Slide 5: Sales Network
FY 2007 Sales Network Core’ Business No. of Agents > Licensed Aaa Financial Advisors 3,018 +27.3% > Non-licensed Financial Advisors 2,163 -19.4% | Banca Mediolanum* 5 58: 5,181 +7.8% * o/w Financial Executives 727 +21.7% | Partner Time 1,308 Seo Fe. Sales Network Growth Core’ Business No. of Agents
Slide 6: Customer Growth
FY 2001 Customer Growth Core’ Business | 301201 vs. 31-1200 | ‘95,500 cc» +15.5% 57,100 [> +27.1% 29,700 [> +71.3% Mediolanum Customer Base - as at 31.12.01 Core’ Business Other |r — 7 73,000 Page 6
Slide 7: Customer Retention and Net Inflows
2001 Gustomer Retention Core’ Business > 81.9% 10.5% FY 2007 Net Inflows Core’ Business Euro millions EN c00 ey e0 ecrane | Managed Savings 2,019.2 +2.0% > Mutual Funds & M.A. 1,024.0 1,116.4 8.3% > Life Policies 1,035.6 902.8 +14.7% | Administered Savings 1,205.7 +14.2% > Securities 647.5 547.4 = +
Slide 8: Net Inflows - Mutual Fund Companies
Net INflOWS - Mutual Fund Companies 00-01 Core’ Business Euro millions tt Ot tt Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan 2001 2002 ig van 2000 Jotal Italian Industry Mediolanum Source: Assogestioni Net InflOWS into MUtUal| FUNGS - Gomparison Gore’ Business 1.97 blEurof > 2.8% 1.68 bi Euro ss
Slide 9: Net Inflows into Equity Funds
2001) Net Inflows into Equity Funds* Euro millions Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jotal italian Industry Mediolanum * Source: Assogestioni Including retail mutual funds, managed accounts in fund units and unit-linked policies FY 2001 Gross INHOWS into Mutual Funds & IVA. Core’ Business
Slide 10: Gross Premiums Written and Economic Results
FY 2001 Gross Premiums written Core’ Business > Recurring Policies * > Single Premium Policies | Total New Business | Total Business in-force Euro millions \+42.1% 10.1% 3.4% 195.5 827.4 137.6 920.7 1,058.3 474.30 +22.1% a ( 47% estimated market share on PI.P FY 2001 Economic Results Core’ Business
Slide 11: Profit by Business Line and Total Revenues
FY 2007) Profit by Business Line Core’ Business Euro millions Life Insurance 103.7 Mutual Funds 45.3 Bank Business -6.0 lexcl. Adv. Investments) 47 Other Operations 3.9 : 4.9% FY 2007 Total Revenues Core’ Business Euro millions Premium Income 1,602.2 1,532.6 +4.5% Reinsurance ceded -13.5 -16.4 -17.7
Slide 12: Premium Income
FY 2001 Premium income Core’ Business Euro millions > U-L Pension Plans (Europension) 8.8 130.4 54.9% > U-L Pension Plans (Tax Benefit *) 106.8) - ha. > U-L Investment Policies 9 6.3 +360.3% > Open Pension Funds 1.0 0.9 -11.1% dairy Pulivias 15d 137.5 HL > Traditional Policies 61.8 15.7 +293.6% > Un
Slide 13: Partner Time New Production and Commission Income
"Partner Time” New Production Core’ Business Euro millions 9%, of total Mediolanum 73) New Recurring dU 96 97 98 99 OO OI FY 2001 Commission Income - mutual Funds Core’ Business Euro millions Entry Fees 45.8 94.5 -51.5% 0/w Irish Funds 32.7 66.4 -50.8% Management Fees 137.4 129.0 +6.5%* 0/w Irish Fu
Slide 14: Bank Revenues and Benefits Paid
FY 2007 Bank Revenues Core’ Business Euro millions +40.2% > Securities -23.6% > Managed Accounts +169.2% > Other Services 18.1 11.8 +53.4% Benefits paid & Changes in Reserves Core’ Business Euro millions | Benefits paid 363.4 633.1 = -11.0% > Claims & Maturities 226.5 147.6 +53.5% > Pull in our Nets
Slide 15: Surrenders of Pension and Investment Policies
Surrenders of Individual Pension Plans Core’ Business Euro millions Traditional Pension Plans 85.2 na. Average Reserves 1,531.1 % of Reserves 5.6% Unit-linked Pension Plans 25.2 Average Reserves 1,944. % of Reserves C13) Average total Reserves 3,475.4 3,511.6 Yo Of Reserves 3.27% 2.875 * excluding g
Slide 16: Costs and Net Investment Income
FY 2001 Costs Core’ Business Claims, Benefits paid, Changes in Reserves Recov. from Reinsurance Acquisition Costs G&A Expenses Advertising Expenses Depreciation Euro millions 1,354.7 = 1,321.1 +2.5% -16.4 18.2 -9.9% 218.1 232.6 6.2% 166.6 138.9 +19.9% 11.2 17.1 -34.5% 39.0 30.8 +26.6% FY 2007 Net In
Slide 17: EV Economic Assumptions and Embedded Value
FY 2007 EV Economic Assumptions Core’ Business fos. . Tw > 7.75% a> 7.75% Segregated funds 4.85% Unit-linked funds =) 6.85% Mutual funds & M.A. = 6.55% =) 6.55% a > 7.75% a> 7.75% STOMA ir > 3.00% => 3.00% Mediolanum Embedded Value Core’ Business 1,917* Euro millions Value of in-force business ® adi
Slide 18: Embedded Value Earnings
FY 2007 Embedded Value Earnings Core’ Business Euro millions Change over the year Dividends paid Goodwill Depreciation - Fibanc Goodwill Depreciation - Gamax FY 2007 EV Earnings Components Core’ Business Euro millions P2007) Fy 200) chance) > Expected return in EV 9 89 +11% > Experience variances (6
Slide 19: EV Earnings - Assumptions and Variances
FY 2001 EV Earnings - change in Assumptions Core’ Business - Euro millions > Lower Duration of ‘Orofund' (15) >» Lower Duration of M.A. (8) > Lower Operational Costs _ Operating Assumption Changes 3B » Lower Investment return in Segregated Funds (14) FY 2001 EV EarninGS- experience variances Core’ B
Slide 20: New Ventures: Assets and Economic Results
FY 2007) Assets under Administration New Ventures Spain - Fibanc Group Germany - Gamax Group Banca Esperia* Euro millions 2,113.5 = -7.7% na. * quota of the Mediolanum Group FY 2001 Economic Results New Ventures Euro millions Spain - Fibanc Group 1.3 Germany - Gamax Group 1.6 = -18.7% * share of Pro
Slide 21: Net Consolidated Effect and Fibanc Assets
FY 2001 Net Consolidated Effect New Ventures Euro millions Net Profit * 0.1 1.6 “93.7% Goodwill Depreciation 4.1 +190.2% Interests paid falnvextaeare 0.7 +614.3% DON VENTURE NET ET ECT cn seibib mses a2a10y 70 * share of Profit pertaining to the Mediolanum Group FY 2001 Fibanc Assets under Admin.. N
Slide 22: Fibanc Sales Network and Results
FY 2007 Fibanc Sales Network New Ventures-Spain No. of Agents > Commercial Agents & Employees - W//:/ yiw:/2/ > Financial Advisors - Weavivtanun wylel 0 Sales Network 169 Introducers New Ventures-Spain Euro millions Total Revenues 27.2 +78.7% Profit before Tax & E.I. 3.8 44.7% Extraordinary Items :
Slide 23: Fibanc Net Effect and Banca Esperia Highlights
FY 2007 Fibanc Net Effect New Ventures-Spain Euro millions Net Profit * 1.3 Goodwill Depreciation Interests paid for Investments -3.8 * share of Profit pertaining to the Mediolanum Group FY 2001 Banca Esperia Highlights New Ventures-Private Banking Euro millions Sonic > 1,036 7.in Managed Assets mpm
Slide 24: Consolidated Assets under Administration
Mediolanum Assets under Administration Consolidated Euro millions = 85 86 87 88 89 90 91 S52 93 94 55 56 S57 9899 O00 01 FY 2001 Assets under Administration Consolidated Euro millions BEEZ Seay") Life Reserves 6,661.0 6,162.7 +8.1% Mutual Funds & M.A. 9,645.8 8,734.8 +10.4% Bank Deposits 4,817.4 3,3
Slide 25: Consolidated Economic Results
FY 2001 Economic Results Consolidated Euro millions Total Revenues 1,938.4 1,875.4 = +3.4% Profit before Tax & E.l. 127.6 158.3 -19.4% Extraordinary Items 11.7 0.7 a. Profit before Tax 139.3 159.0 = -12.4% Income Tax -36.0 428 -15.9% Profit from Minority Interests 0.0 0.8 -96.5% 2001 Quartenly Profi
Slide 26: Consolidated Embedded Value
Mediolanum Embedded Value Consolidated Euro millions Value of in-force business Adjusted 1,076 VIF Life hareholders' uty 347 VIF Funds & MA. agg 535 SMI~SS OYEM2S Page 26
Slide 27: Investor Behaviour in Down Market and 2002 Projects
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Slide 28: 2002 Projects and Group Structure
2002 Projects New Ventwes sey. Direc’ Citadel Egaré-ap: May 2750 -siuiiily ab riders” Latyet of 400 Nisa astiorized Preducts £0 £2 lasendd yradially GamarfeLenz -Bak Lez bo 22 offatatiotal 24 QI ZOOS -Prepatity for reer bmede of exclistye cidviszors -lrisa Predac&s wide anbnorizabiou Banca deeperia