Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — Q1 2016 Earnings Presentation
83 slides from Banca Mediolanum SpA's earnings presentation, Apr 28, 2016
Slide 1: Q1 2016 Results & Business Update
April 28, 2016 Q1 2016 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
BMED 2 Table of Contents Q1 2016 Results and colour key Q1 2016 Group Results 3 Q1 2016 Domestic Market Results 13 Q1 2016 Foreign Markets Results 37 Business Update 42 Mediolanum Facts 52
Slide 3: Q1 2016 Group Results
3 Q1 2016 Group Results
Slide 4: Income Statement
Q1 2016 4 Income Statement Group € mn Q116 Q115 Change Entry fees 17.6 27.8 -37% Management fees 200.5 195.5 +3% Performance fees 50.4 132.9 -62% Banking service fees 20.4 22.1 -8% Other fees 8.1 9.6 -15% Total commission income 297.1 387.9 -23% Net interest income 61.6 61.3 +0% Net income on invest
Slide 5: Income Statement Salient Points
Q1 2016 5 Income Statement Salient Points Group YoY comparison Entry fees (€ 10 mn lower YoY) reflected the lower gross inflows into mutual funds due to a sluggish start to the year Management fees (€ 5 mn higher YoY) increased slightly despite the market downturn in Q1 Performance fees (€ 82 mn low
Slide 6: Income Statement by Quarter
Q1 2016 6 Income Statement by Quarter Group € mn Q115 Q215 Q315 Q415 Q116 Entry fees 27.8 31.3 21.9 21.0 17.6 Management fees 195.5 208.7 206.8 204.2 200.5 Performance fees 132.9 26.4 19.5 147.2 50.4 Banking service fees 22.1 21.0 22.1 21.2 20.4 Other fees 9.6 10.5 8.1 8.9 8.1 Total commission incom
Slide 7: Quarterly Commission Income from Mgmt Fees
Q1 2016 7 Quarterly Commission Income from Mgmt Fees Group € mn 200 150 100 209 207 204 201 195 179 164 175 139 144 151 154 123 129 111 117 50 94 100 105 105 104 104 110 72 81 86 91 59 66 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 201
Slide 8: Quarterly Net Interest Income
Q1 2016 8 Quarterly Net Interest Income Group € mn 90 80 70 60 50 84 40 73 75 80 75 74 72 64 65 64 63 65 62 30 53 60 59 58 59 59 61 46 45 44 20 41 36 35 41 31 30 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2012 2013 2014 2015 2016
Slide 9: Quarterly Recurring Revenues
Q1 2016 9 Quarterly Recurring Revenues Group Commission Income from Management Fees + Net Interest Income (€ mn) 300 250 200 150 273 270 269 262 257 233 239 218 216 213 222 100 194 186 197 199 201 203 177 149 159 164 122 121 128 141 50 106 111 112 111 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 10: AUA/AUM Trend
Q1 2016 10 AUA/AUM Trend Group € bn 70.7 70.9 Administered Assets (Q116: € 22.2 bn) 64.5 Managed Assets (Q116: € 48.7 bn) 57.8 51.6 45.9 46.2 40.4 33.3 34.6 30.4 29.5 26.0 23.5 20.9 21.0 17.9 13.0 9.5 7.2 4.7 5.3 5.5 6.1 2.0 2.6 3.1 0.1 0.6 0.9 1.3 1.6 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00
Slide 11: Assets under Administration/Management
Q1 2016 11 Assets under Administration/Management Group € mn 31/03/16 31/12/15 Change 31/03/15 Change Mutual Funds & U-L Policies 39,143.1 39,820.7 -2% 39,052.0 +0% ’Freedom’ Life Policies 437.6 503.1 -13% 908.6 -52% Other Life Insurance products 1,655.9 1,730.9 -4% 2,038.3 -19% Banking* 17,086.3 15
Slide 12: Capital Adequacy
Q1 2016 12 Capital Adequacy Group € mn – as at 31/03/2016 – preliminary data Q116 FY15 Total Regulatory Capital Held* 1,871 1,484 Total Required Capital 1,465 1,159 o/w Required Capital – Banks** 919 920 o/w Solvency Capital Requirements – Insurance companies* 546 239 EXCESS CAPITAL 406 325 GROUP CA
Slide 13: Q1 2016 Domestic Market Results
13 Q1 2016 Domestic Market Results
Slide 14: Domestic Market Income Statement
Q1 2016 14 Income Statement Domestic Market € mn Q116 Q115 Change Entry fees 14.3 24.9 -43% Management fees 189.5 186.1 +2% Performance fees 47.6 123.3 -61% Banking service fees 15.7 17.5 -11% Other fees 7.7 9.2 -16% Total commission income 274.7 361.0 -24% Net interest income 56.9 56.1 +1% Net inco
Slide 15: Domestic Income Statement by Quarter
Q1 2016 15 Income Statement by Quarter Domestic Market € mn Q115 Q215 Q315 Q415 Q116 Entry fees 24.9 27.5 18.1 17.3 14.3 Management fees 186.1 198.3 196.1 192.9 189.5 Performance fees 123.3 24.3 18.6 140.0 47.6 Banking service fees 17.5 16.5 17.2 16.0 15.7 Other fees 9.2 10.1 7.7 8.4 7.7 Total commi
Slide 16: Acquisition Costs in detail
Q1 2016 16 Acquisition Costs in detail Domestic Market € mn Q116 Q115 Change One-time commissions 18.4 27.4 -33% Ongoing commissions 63.7 61.7 +3% Total commissions 82.0 89.1 -8% Incentives on individual net inflows 7.1 6.8 +4% Contests & bonuses 2.3 3.1 -26% Reimbursement of costs for customer even
Slide 17: Total Net Inflows
Q1 2016 17 Total Net Inflows Domestic Market € mn Q116 Q115 Change directly into Mutual Funds +391.1 +654.0 -40% through ‘MyLife’ U-L policy +145.5 +602.7 -76% through other U-L policies +67.6 -64.9 n.s. Mutual Funds Inflows +604.2 +1,191.8 -49% Other Life Insurance policies -93.3 -150.8 -38% Manage
Slide 18: Mutual Funds Net Inflows by Category
Q1 2016 18 Mutual Funds Domestic Market Net Inflows by Category € bn – including Unit-Linked policies Q115 Q116 € +1,191.8 mn € +604.2 mn +397 +20 -47 +230 +573 +18 +58 +456 -7 -2 +161 -62 Bond Valore Equity Balanced Money Other Bond Valore Equity Balanced Money Other Attivo mkt Attivo mkt
Slide 19: Mutual Funds Net Inflows by Product
Q1 2016 19 Mutual Funds Domestic Market Net Inflows by Product € mn Q116 Q115 Change ’Best Brands’ funds of funds (IRL) +309.2 +415.1 -26% ’Challenge’ mutual funds (IRL) +17.8 -12.2 n.s. ’Fondi Italia’ mutual funds (ITA) +16.6 +165.1 -90% 3rd-party stand-alone funds +49.5 +95.2 -48% Other -2.0 -9.1
Slide 20: Mutual Funds Gross Inflows by Product
Q1 2016 20 Mutual Funds Domestic Market Gross Inflows by Product € mn Q116 Q115 Change ’Best Brands’ funds of funds (IRL) 753.9 1,586.4 -52% ’Challenge’ mutual funds (IRL) 137.3 252.0 -46% ’Fondi Italia’ mutual funds (ITA) 277.2 583.8 -53% 3rd-party stand-alone funds 69.4 114.5 -39% Other 7.6 38.8 -
Slide 21: Mutual Funds Assets by category and A.M. company
Q1 2016 21 Mutual Funds Domestic Market Assets* by category and A.M. company as at 31/03/2016 – including U-L assets Gamax Mediolanum Management Gestione (Luxembourg) Money Other 2% Fondi (Italy) 1.5% Market 1% 18.8% other A.M. companies Valore 4.4% Attivo 3% Equity 47% Mediolanum Bond 40% Internati
Slide 22: Mutual Funds AUM Trend
Q1 2016 22 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 39.8 39.1 35.3 29.2 23.7 19.6 20.0 15.5 15.2 15.8 14.1 11.7 10.0 11.0 8.7 9.6 8.4 7.4 5.0 3.7 4.0 3.8 3.8 4.3 1.3 1.5 1.9 2.2 0.1 0.6 0.9 1.1 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Slide 23: Mutual Funds Assets under Management
Q1 2016 23 Mutual Funds Domestic Market Assets under Management € mn 31/03/16 31/12/15 Change 31/03/15 Change ’Best Brands’ funds of funds (IRL) 16,257.8 16,403.4 -1% 15,375.2 +6% ’Portfolio’ funds of funds (IRL) 365.0 383.8 -5% 442.9 -18% ’Challenge’ mutual funds (IRL) 12,893.6 13,369.0 -4% 14,278.
Slide 24: Banking Revenues
Q1 2016 24 Banking Domestic Market Revenues € mn Q116 Q115 Change Securities trading fees 3.1 5.3 -40% o/w 3rd-party structured bonds 1.1 2.6 -59% Service fees 12.5 12.2 +2% Fee income 15.7 17.5 -11% Net Interest Income 53.8 52.9 +2% Net income on investments at fair value (11.5) (6.9) +67% o/w unre
Slide 25: Banking Interest Spread
Q1 2016 25 Banking Domestic Market Interest Spread Q116 FY15 Total Cost of Funding 0.53% 0.66% Retail Cost of Funding 0.84% 1.09% Total Interest Income 1.48% 1.59% Retail Interest Income 2.55% 2.75% TOTAL SPREAD 0.95% 0.92% Spread on Retail 1.70% 1.66%
Slide 26: Banking Credit Quality
Q1 2016 26 Banking Domestic Market Credit Quality € mn – as at 31/03/2016 31/03/16 31/12/15 Change 31/03/15 Change Mortgages 4,838 4,757 +2% 4,288 +13% Personal & Commercial Loans 1,144 1,127 +2% 911 +26% Lines of credit 417 418 -0% 406 +3% Total Loans 6,399 6,302 +2% 5,605 +14% % on total loans B.M
Slide 27: Banking Mortgage Update
Q1 2016 27 Banking Domestic Market Mortgage Update € mn Q116 FY15 Q115 Mortgage Portfolio Total Value 4,838 4,757 4,288 Average rate 2.27% 2.49% 2.64% Average residual LTV 58% 58% 57% New Business Total amount granted 217 1,001 210 Average rate 1.73% 2.07% 2.33% Average amount granted 143 143 143 Av
Slide 28: Banking Assets under Administration
Q1 2016 28 Banking Domestic Market Assets under Administration € mn 31/03/16 31/12/15 Change 31/03/15 Change Cash Deposits 14,040.9 12,854.8 +9% 11,548.8 +22% Repurchase agreements 30.2 0 n.s. 30.4 -1% Mediolanum bonds 140.5 154.7 -9% 263.8 -47% 3rd-party structured bonds 816.1 885.4 -8% 1,052.2 -22
Slide 29: Balance Sheet Highlights
Q1 2016 29 Balance Sheet Highlights Domestic Market € mn – as at 31/03/2016 Liabilities Assets Retail 14,280 6,399 Treasury 7,948 15,734 o/w interbank / intra-group deposits & repos 1,368 965 o/w ECB refinancing 0 0 o/w MTS refinancing 6,580 6,777 o/w securities (bonds) 7,992 Other liabilities / ass
Slide 30: Mediolanum Group Bond Portfolio
Q1 2016 30 Mediolanum Group Domestic Market Bond Portfolio € mn – as at 31/03/2016 Mediolanum Group Banca Mediolanum Mediolanum Vita Book value AD Book Value AD Book Value AD Italian Govies 16,755 0.9 15,497 0.7 1,096 3.5 Italian Financials 646 2.5 401 1.3 237 4.4 Spanish Govies 803 1.7 717 1.9 86 0
Slide 31: Focus on Financial Bonds
Q1 2016 31 Mediolanum Group Domestic Market Focus on Financial Bonds* € mn – as at 31/03/2016 Avg Length TOTAL Covered Senior Subordinated Other to Maturity INTESA SANPAOLO 206.3 15.0 175.4 15.9 - 2.6 UNICREDIT 145.6 10.0 121.1 14.5 - 2.2 BANCO POPOLARE 76.0 2.5 73.5 - - 2.4 MONTE DEI PASCHI SIENA 7
Slide 32: Insurance Revenues
Q1 2016 32 Insurance Domestic Market Revenues € mn Q116 Q115 Change Premiums less Amounts paid & change in reserves 5.3 11.8 -55% Commission income 95.6 132.2 -28% Net Interest Income 3.1 3.1 -2% Net income on investments at fair value 0.9 3.2 -73% o/w unrealised 0.8 1.9 -58% Net financial income 3.
Slide 33: Insurance Life – Policyholders' Assets
Q1 2016 33 Insurance Domestic Market Life – Policyholders’ Assets € mn 31/03/16 31/12/15 Change 31/03/15 Change Traditional 1,315.7 1,326.0 -1% 1,269.5 +4% Index-linked 340.2 404.9 -16% 768.8 -56% Unit-linked pension plans 5,265.1 5,427.0 -3% 5,584.2 -6% Unit-linked endowment policies 3,648.6 3,829.
Slide 34: Family Banker Network
Q1 2016 34 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount and split by average portfolio – Year 2016 +56 > € 20 mn 18% 18% -44 -9 € 10-20 mn X% 33% 33% 4,387 4,390 € 5-10 mn 28% 29% € 1-5 mn Turnover rate 17% (annualised) 4.8% 16% 4% X% 4% < € 1 mn Avg. 01/01 Resigned Re
Slide 35: Focus on 'Private Bankers'
Q1 2016 35 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’* as at 31/03/2016 446 452 409 362 322 215 248 146 177 124 83 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 Average assets in portfolio: € 31.4 mn o/w managed assets: € 22.3 mn * 'Private Bankers' are a subset of Famil
Slide 36: Banca Esperia (100%) Highlights
Q1 2016 36 Banca Esperia (100%) Domestic Market Highlights € mn Q116 Q115 Change vs.FY15 Statutory Net Income 1.2 4.8 -75% Equity contribution in Mediolanum’s P&L* 0.6 (0.9) n.s. Assets under Administration/Management 17,095 17,958 -5% -1% % in Managed Assets 51.5% 49.7% +4% +0% Net Inflows +69 -74
Slide 37: Q1 2016 Foreign Markets Results
37 Q1 2016 Foreign Markets Results
Slide 38: Spain Highlights
Q1 2016 38 Spain Foreign Markets Highlights € mn Q116 Q115 Change vs.FY15 Net Income excluding non-recurring items 5.4 9.7 -44% Net impact of settlement of past (inherited) litigation (7.8) n.s. Net Income 5.4 1.9 +189% Managed Assets 2,236.9 2,075.6 +8% +1% Administered Assets 1,246.0 1,224.7 +2% -
Slide 39: Germany – Total Highlights
Q1 2016 39 Germany – Total Foreign Markets Highlights € mn Q116 Q115 Change vs.FY15 Net Income (3.3) (1.1) +198% Managed Assets 404.2 443.1 -9% -2% Administered Assets 96.2 80.6 +19% +4% Total Assets 500.5 523.7 -4% -1% Gross Inflows into Managed Assets 16.4 14.2 +15% Net Inflows into Managed Assets
Slide 40: Germany – Bankhaus August Lenz Highlights
Q1 2016 40 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn Q116 Q115 Change vs.FY15 Net Income (3.6) (2.9) +25% Managed Assets 221.5 212.7 +4% +3% Administered Assets 96.2 80.6 +19% +4% Total Assets 317.7 293.3 +8% +3% Gross Inflows into Managed Assets 15.2 11.1 +37% Net Inflows into
Slide 41: Germany – Gamax Highlights
Q1 2016 41 Germany – Gamax Foreign Markets Highlights € mn Q116 Q115 Change vs.FY15 Net Income 0.3 1.8 -83% Assets under Management 182.7 230.4 -21% -7% Gross Inflows 1.2 3.1 -63% Net Inflows -3.2 -11.3 -72%
Slide 42: Business Update
42 Business Update
Slide 43: March 2016 Net Inflows
43 Banca Mediolanum Business Update March 2016 Net Inflows € mn Mar '16 YTD ‘16 YTD ‘15 directly into Mutual Funds +166 +391 +654 through ‘MyLife’ U-L policy +51 +145 +603 through other U-L policies +29 +68 -65 Mutual Funds Inflows +246 +604 +1,192 Other Life insurance policies -35 -93 -151 3rd-part
Slide 44: Customers acquired & Monthly Net Inflows
44 Banca Mediolanum Business Update Customers acquired & Monthly Net Inflows vs. vs. vs. vs. Dec’15 Dec’14 Jan’16 Jan’15 Feb’16 Feb’15 Mar’16 Mar’15 Customers Acquired 10,204 +46% 8,570 +24% 11,625 +52% 9,895 +20% Total Net Inflows 982 +68% 502 +79% 648 +68% 573 +53%
Slide 45: Italian Sales Networks Ranking by Net Inflows
45 Italian Sales Networks Business Update Ranking by Net Inflows € thousands - totals by Group Q1 2016 Total Net Inflows o/w Managed Assets Banca Fideuram (incl. Sanpaolo) 1.880.578 -323.078 Banca Mediolanum 1.723.297 511.602 Banca Generali 1.529.654 837.984 Finecobank 1.217.593 -42.211 Azimut 993.2
Slide 46: Net Inflows into Mutual Funds
46 Net Inflows into Mutual Funds* Business Update € mn 15000 600 10000 400 5000 200 0 0 Jan 12 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 13 Jan 14 Jan 15 Jan 16 Jul 11 Jul 00 Jul 01 Jul 02 Jul 03 Jul 04 Jul 05 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10 Jul 12 Ju
Slide 47: Mutual Funds AUM Market Share, Assets, Rank
47 Mutual Funds AUM Business Update Mediolanum’s Market Share, Assets , Rank 6% 45 March 2016 mkt share 40 Intesa Sanpaolo 19.5% 5% Pioneer 10.1% 35 Generali 9.0% Blackrock 6.9% 4% 30 Anima 6.3% 25 6 Mediolanum 4.6% 3% Azimut 3.5% 4 20 UBI Banca 2.9% 5 JP Morgan 2.9% 2% 6 6 15 Arca 2.8% 8 9 10 Amund
Slide 48: Customer Behaviour
48 Banca Mediolanum Business Update Customer Behaviour as at 31/03/2016 959,486 primary account holders: …58% of which use Mediolanum as their primary banking institution 776,420 with a 450,513 vs. 412,804 as at 31/03/2016 (no bank account) bank account… In a 2013 survey, 39% of Mediolanum customers
Slide 49: 'Freedom' account customers: Cross-selling into managed products
49 ’Freedom’ account customers: Business Update Cross-selling into managed products Average assets Per-capita asset growth of ‘Freedom’ account holders* after 83 months (€11.7 bn in total assets as at 31/03/2016) € 176,791 Average assets at account opening € 64,122 € 116,142 (66%) in high-margin man
Slide 50: Focus on high-remuneration deposits
50 Banca Mediolanum Business Update Focus on high-remuneration deposits Deposits in € mn as at 31/03/2016 – rates offered as at 01/04/2016 ‘Freedom+’ balances above € 15,000 (current offer*: 0.70%) 4,370 ‘InMediolanum’ time deposits & lock-ins on current accounts (current offer*: 1.00%) 3,257 Launch
Slide 51: Mediolanum Facts
51 Mediolanum Facts
Slide 52: BMED Shareholders & Group Structure
Mediolanum 52 BMED Shareholders & Group Structure Facts as at 31/03/2016 BANKING 100% Banco Mediolanum Bankhaus August Lenz Mediolanum Fiduciaria ASSET MANAGEMENT Mediolanum Mediolanum Mediolanum Gamax 100% Gestione Fondi Int’l Funds Gestión S.A. Management Doris Group (direct & indirect ownership)
Slide 53: Integrated Business Model
Mediolanum 53 Banca Mediolanum’s Integrated Business Model Facts We and our Family Bankers view the company as a single entity, providing solutions that best fit the needs of the customer, whether it be in the form Insurance of a mutual fund, an insurance policy or a bank product The Bank (est. 1997
Slide 54: Multi-channel Banking Model
Mediolanum 54 Mediolanum’s Multi-channel Banking Model Facts Mobile apps (all platforms) TV-based services (Smart TV) Website Automated Telephone Services (VRU / SMS) Customer Banking Center 17,000 500 Reps 3rd-party branches Real-time sharing of customer information Entire 4,400 ATM Family network
Slide 55: Direct Channel Access Trend
Mediolanum 55 Direct Channel Access Trend Facts millions of accesses 30 25 20 15 68% 60% 50% 10 38% 5 27% 17% 46% 43% 10% 8% 7% 5% 6% 5% 6% 5% 0 2013 2014 2015 Q1 2016 Website Mobile Interactive Voice Responder Banking Centre Reps
Slide 56: Model combines advantages of traditional and direct banks
Mediolanum 56 Banca Mediolanum’s model combines Facts the advantages of traditional and direct banks Family Bankers: the human touch Self-employed tied agents with entrepreneurial Willing to provide professional advice approach anytime, anywhere Extensively trained to tackle every household financia
Slide 57: Italian Household Financial Assets
Mediolanum 57 Italian Household Financial Assets Facts as at 31/12/2014 – real estate not included Network of Asset Gatherers have only 8% of the huge Italian 32.5% Other (e.g. cash, HH financial assets market, entrepreneurial although recognised as best-in- businesses) class in terms of personal se
Slide 58: Banca Mediolanum's Market Share of Household Assets
Mediolanum 58 Italian Household Financial Assets Facts Banca Mediolanum’s Market Share 1.55% 1.5% on a total of € 3,934 bn reported by Banca d’Italia 1.0% 0.5% 0% 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Slide 59: Net Income Trend
Mediolanum 59 Net Income Trend Facts € mn 439 351 337 321 233 224 224 212 217 141 131 129 115 103 88 82 75 67 73 49 54 60 38 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Q1 16 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operation
Slide 60: Dividend Payout
Mediolanum 60 Dividend Payout Facts Mediolanum S.p.A. + Banca Mediolanum S.p.A. (€ mn) 439 xx Net Income Retained Earnings 351 337 Total dividends paid 321 217 233 153 122 224 212 217 224 219 88 78 66 141 107 110 129 131 115 103 39 21 88 82 50 67 199 222 75 46 30 184 54 60 38 9 146 146 146 132 26 34
Slide 61: Total Net Inflows Trend
Mediolanum 61 Banca Mediolanum Facts Total Net Inflows Trend € mn 7000 Net Inflows into Administered Assets 6000 5,795 Net Inflows into Managed Assets 5000 4,662 4,082 4000 3,225 3,437 3,285 3,339 3,059 3000 2,610 2000 1,805 2,280 2,258 1,546 1,544 1,689 1000 1,265 0 00 01 02 03 04 05 06 07 08 09 10
Slide 62: Family Banker Network
Mediolanum 62 Banca Mediolanum Facts Family Banker® Network Licensed Financial Advisors 5,040 5,077 4,945 4,772 4,507 4,315 4,407 4,386 4,387 4,390 4,114 4,052 4,048 3,978 4,011 3,842 3,018 2,513 2,200 2,046 1,915 1,828 1,885 1,581 1,659 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Slide 63: Average Assets per Family Banker
Mediolanum 63 Banca Mediolanum Facts Average Assets per Family Banker € mn 13.3 12.2 10.9 9.9 8.5 2011 2012 2013 2014 2015
Slide 64: Customers
Mediolanum 64 Banca Mediolanum Facts Customers Primary account holders (thousands) 915 921 907 943 959 894 897 886 879 878 798 840 761 778 785 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Q1 16
Slide 65: Average Assets per Customer
Mediolanum 65 Banca Mediolanum Facts Average Assets per Customer € thousands Primary Account Holders Primary Bank Account Holders 70.1 72.7 74.8 66.4 62.0 58.3 57.9 53.5 48.7 42.1 2011 2012 2013 2014 2015
Slide 66: Bank Accounts
Mediolanum 66 Banca Mediolanum Facts Bank Accounts thousands Since March 2005: all new customers are required to open a bank account as their first product 841 862 729 774 708 582 627 534 566 568 466 339 344 392 297 333 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Q1 16
Slide 67: Management Fees History
Mediolanum 67 Management Fees* History Facts expressed as a % of average managed assets in the period 1.98% 2.00% 2.02% 2.02% 1.96% 1.94% 1.98% 2.00% 2.00% 2.02% 1.99% 2.00% 04 05 06 07 08 09 10 11 12 13 14 15 * including insurance commissions on U-L policies
Slide 68: Resilience of Management Fees
Mediolanum 68 Resilience of Mediolanum’s Management Fees* Facts regardless of trends in equity markets worldwide 1,278 Worldwide Equity Markets (MSCI World Index) 779 Mediolanum’s Mutual funds 39.8 Assets 35.3 (€ bn) 29.2 19.6 20.0 23.7 14.1 15.5 15.2 11.7 15.8 11.0 04 05 06 07 08 09 10 11 12 13 14
Slide 69: Performance Fees History
Mediolanum 69 Performance Fees History Facts including Unit-Linked policies Commission income from performance fees in € mn 326 bps on average assets* 172 182 176 153 155 152 146 133 85 83 92 99 97 88 92 57 62 76 57 63 50 60 10-yr average 45 45 52 76.4 bps 03 04 05 06 07 08 09 10 11 12 13 14 15 * ca
Slide 70: Mediolanum's Culture: Our Competitive Advantage
Mediolanum 70 Mediolanum’s Culture Facts 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, providing solutions accordin
Slide 71: Investment Advisory Strategy
Mediolanum 71 Investment Advisory Strategy Facts Our investment strategy explains the consistency of our inflows & transfers ‘technical performance’ into ‘customer performance’ We advise our customers proposing products & services that correspond to each of their specific needs Investor needs remain
Slide 72: The Mediolanum Approach vs. Open Architecture
Mediolanum 72 The Mediolanum Approach Facts vs. Open Architecture ‘Best Brands’ family of Funds of branded Funds unveiled in April 2008 This is not the ‘Open Architecture’ approach It is impossible for a private investor to choose among a supermarket-like offer of thousands of funds, if not on the v
Slide 73: 'MyLife' Unit-Linked Policy
Mediolanum 73 ’MyLife’ Unit-Linked Policy Facts Insurance wrapper for mutual funds launched March 2014 Addresses all needs of HNW investors Financial planning: flexible, hassle-free diversification across all investment classes; access to 100+ funds (up to 40% picked from a selection of 3rd-party fu
Slide 74: The 'Freedom' Current Account
Mediolanum 74 The ’Freedom’ Current Account Facts launched March 2009, reengineered March 2012 Launched in the wake of the Lehman Bros. bankruptcy, exploited Mediolanum’s unique situation in terms of high liquidity & good reputation Designed to be the best account in the market for HNW individuals:
Slide 75: Training & Communication: Corporate University
Mediolanum 75 Training & Communication: Facts Mediolanum Corporate University Inaugurated March 2009 Centralises our training know-how, in coordination with top universities, professors and individuals who are experts in the field Provides our Family Bankers & employees with a resource for life-long
Slide 76: Training & Communication: Corporate TV Channel
Mediolanum 76 Training & Communication: Facts Corporate TV Channel A proprietary state-of-the-art tool established in 1989 Encrypted programs to train, motivate & communicate with our Family Bankers Financial news commented by top company executives Company news & product information Online training
Slide 77: Marketing Events
Mediolanum 77 Marketing Events Facts 8,130 events held in 2015 (-21% vs. 2014): local & high-level events, sports events (e.g. Giro d’Italia), talk shows, etc. Over 350,000 customers and prospects attending Results are measurable: Net inflows into managed assets of invited customers in the 3 months
Slide 78: The 4th best known bank brand in Italy
Mediolanum 78 The 4th best known bank brand in Italy Facts Total brand awareness – Italian banks – year 2015 45% 12% 41% 12% 9% 25% 7% 21% 6% 17% 4% source: GFK Eurisko
Slide 79: Most memorable advertising in banking
Mediolanum 79 Banca Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – year 2015 13.8% 8.2% 6.9% 6.3% 3.9% 2.0% 1.3% 1.2% 0.9% 0.6% 0.6% source: GFK Eurisko
Slide 80: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 80 Ranking of Italian Banking Groups Facts by Market Capitalisation as at 21/04/2016 Intesa-SanPaolo 39.08 Unicredit 21.52 Mediobanca 5.91 Banca Mediolanum 5.25 FinecoBank 4.27 UBI 3.35 Banca Generali 3.02 BPM 2.82 BPER 2.42 Banco Popolare 2.19 CREDEM 2.1 MPS 1.98 Pop.di Sondio 1.5 Banca
Slide 81: MED.MI / BMED.MI Total Return Index
Mediolanum 81 MED.MI / BMED.MI Facts Total Return Index* 1400 1200 1000 800 600 400 200 0 * includes dividend reinvestment, June 3, 1996 – February 16, 2016 source: Datastream
Slide 82: Disclaimer
82 Disclaimer This document has been prepared by Banca Mediolanum S.p.A. for the sole purpose of providing information and presenting the Group’s strategies. The information, opinions, valuations and forecasts it contains have not been audited by any independent body; they may be altered at any time
Slide 83: Investor Relations contacts
83 Investor Relations contacts Alessandra Lanzone Banca Mediolanum S.p.A. +39-02-9049.2039 Via Francesco Sforza 15 alessandra.lanzone@mediolanum.it 20080 Basiglio MI – Italy Lisa Maxon http://www.mediolanum.com http://www.bancamediolanum.it +39-02-9049.2997 lisa.maxon@mediolanum.it Luca Pugliese +39