Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — Investor Day (November 2019)
75 slides from Mediobanca - Banca Di Credito Finanziario's investor day presentation, Nov 12, 2019
Slide 1: Strategic Guidelines FY 2019-23
STRATEGIC GUIDELINES FY 2019-23 MEDIOBANCA DISTINCTIVE AND SUSTAINABLE SPECIALIZED FINANCIAL 12 November 2019
Slide 2: Agenda
AGENDA Section 1. Group ambitions Section 2. Divisional ambitions 2.1 Wealth Management 2.2 Consumer Banking 2.3 Corporate & Investment Banking 2.4 Principal Investing 2.5 Holding Functions Section 3. Closing remarks Annex Macro scenario Glossary
Slide 3: Mediobanca: A Story of Consistency
MEDIOBANCA A STORY OF CONSISTENCY Group ambitions Section 1 Along with its reshaping trajectory Mediobanca Group has become a diversified financial player with a valuable and distinctive profile in the European financial sector due to the effectiveness and sustainability of its accretive value cycle
Slide 4: Mediobanca: A Diversified Financial Group
MEDIOBANCA: A DIVERSIFIED FINANCIAL GROUP… Group ambitions Section 1 Key financial information¹ Wealth Consumer Revenues: €2.5bn TFA: €61bn Management Banking Net profit: €823m Loan book: €44bn ROTE adj: 10% Gross NPLs/Gross Ls 3.9% C/I ratio: 46% DPS: €0.47 Corporate & No. of staff: 4.8k Stated pay
Slide 5: ...With an Integrated Business Model
...WITH AN INTEGRATED BUSINESS MODEL… Group ambitions Section 1 HIGH SYNERGIC BUSINESS Capital light Corporate & Labour intensive Wealth Fee driver Fee driver Recurrent Management Inv.Banking Cyclical REALLOCATION OPPORTUNITY DIVERSIFICATION OPPORTUNITY EPS/DPS accretive Capital intensive Principal
Slide 6: ...Able to Grow and Deliver
… ABLE TO GROW AND DELIVER … Group ambitions Section 1 In last 3 years we have significantly enlarged and reshaped the Group … Business positioning enhanced, Growth in revenues (up 7%¹), Growth in revenue-generating assets: investing in people TFAs up 25%¹, AUM up 31%,¹ profit (EPS adj. up 13%¹), (h
Slide 7: Outperforming the Sector by Financial Results and Market Performance
…OUTPERFORMING THE SECTOR BY FINANCIAL RESULTS AND MARKET PERFORMANCE… Group ambitions Section 1 Last 3Y performance MEDIOBANCA ITALIAN BANKS avg EUROPEAN BANKS avg Revenues (3Y CAGR¹) +7% 0% -1% Net interest income / fees (3Y CAGR¹) +5% / +11% 0% / +1% -3% / +2% PBT (3Y CAGR¹) +13% +6% +9% Net loan
Slide 8: ...Due to Distinctive DNA, Culture, Positioning
…DUE TO DISTINCTIVE DNA, CULTURE, POSITIONING… Group ambitions Section 1 Stable Board and Responsible business Specialization and Strong positioning management in the last approach Innovation in business whose 15Y growth is driven by Private-Investment Bank long-term trends Indepth knowledge of Stro
Slide 9: ...And Effectiveness of Its Accretive Value Cycle
…AND EFFECTIVENESS OF ITS ACCRETIVE VALUE CYCLE Group ambitions Section 1 STRONG POSITIONING RESPONSIBLE SPECIALIZED FINANCE DNA Effectiveness of MB business model, > REPUTABLE - HIGH QUALITY Strong brand value focused on high-margin, specialized, Standing and quality long-term growing businesses Et
Slide 10: Key Trends Ahead
KEY TRENDS AHEAD ADVERSE MACRO, DISRUPTIVE TECHNOLOGY, STRICTER REGULATION, RISE OF ESG Group ambitions Section 1 SCENARIO DEVELOPMENTS REQUIREMENTS TO BE SUCCESSFULLY COMPETITIVE Negative interest rates for longer Strong positioning in selected core businesses/countries ADVERSE MACRO High cost effi
Slide 11: Set to Turn a Challenging Scenario into Opportunities
MEDIOBANCA: SET TO TURN A CHALLENGING SCENARIO INTO OPPORTUNITIES Group ambitions Section 1 Italian WM market worth €4tr, largely MBWM un-managed (65%) will become a market leader with high Specialized operator gaining share growth rates & sustainability Corporate and Financial Sponsors MACRO activi
Slide 12: Next 4Y Mission: Establish Mediobanca as a Distinctive Growth Player
NEXT 4Y MISSION: TO DEFINITIVELY ESTABLISH MEDIOBANCA AS A DISTINCTIVE GROWTH PLAYER Group ambitions Section 1 Our 2019-23 BP aims to further upgrade the effectiveness of our business model in order to definitively establish Mediobanca as a distinctive growth player in Europe which is consistently v
Slide 13: Leveraging Investments in Talent & Innovation
LEVERAGING INVESTMENTS IN TALENT & INNOVATION .. TO FOSTER BUSINESS GROWTH Group ambitions Section 1 With no restructuring/rationalization needs and keeping efficiency core in the organization (cost/income 46%) Mediobanca in the next 4Y will invest in human talent and IT/digital upgrade to keep the
Slide 14: ...And with Significant Investments in Distribution
…AND WITH SIGNIFICANT INVESTMENTS IN DISTRIBUTION… GRASPING BENEFITS OF ECONOMIES OF SCALE AND INCREASING OVERALL EFFICIENCY Group ambitions Section 1 >1,400 WM franchise empowerment: 60% increase in sales people to over 1,400 (up 520) >900 675 Affluent FAs +60% WM Private: people to increase from 1
Slide 15: We'll Deliver Growth in Assets and Revenues
..WE’LL DELIVER GROWTH IN ASSETS AND REVENUES… SCALING UP ESPECIALLY CAPITAL-LIGHT BUSINESS Group ambitions Section 1 Growing TFAs Growing loan book Growing revenues with improving mix driven by WM with K-light revenues1 up 40% €bn, % €bn, % €bn 4Y CAGR +8% 4Y CAGR +4% 4Y CAGR +4% 83bn 51bn 3.0bn 44
Slide 16: ...With Revenue Growing in All Divisions
…WITH REVENUE GROWING IN ALL DIVISIONS ESPECIALLY CAPITAL LIGHT EXECUTION RISK LOWERED BY DIVERSIFICATION Group ambitions Section 1 Revenues trend (€bn, 4YCAGR %) Group 4YCAGR: +4% +3% ~ 3.0 +3% +6% +8% 2.5 FY19¹ Wealth Corporate & Consumer Principal Holding BP23T Management Inv. Banking Banking Inv
Slide 17: We'll Deliver Growth in Earnings and Profitability
WE’LL DELIVER GROWTH IN EARNINGS AND PROFITABILITY… ROTE 11% , EPS +4%1 Group ambitions Section 1 Group ROTE up enhancing MB value map positioning 14% ROTE 12% 11% ROTE 10% 1.4 MB 12% 2023T 10% 1.2 7% CAGR +4%1 10% COE 8% 1.10 EPS 1 MB 8% Today 6% 0.93 0.8 4% 6% 0.69 0.6 2% 0.4 4% GOP/RWA 0% 0.2 2%
Slide 18: ...And High, Consistent Capital Generation
…AND HIGH, CONSISTENT CAPITAL GENERATION 135bps PER YEAR Group ambitions Section 1 High capital generation: 135bps average CET1 build-up per year CET1 ratio trend (bps, average per year, phase-in) Sound earnings generation (ROTE@11%) supported by high organic growth 45bps 14.1% per year 30bps per ye
Slide 19: With a Paradigm Shift in Capital Management Strategy
WITH A PARADIGM SHIFT IN CAPITAL MANAGEMENT STRATEGY… OPTIMIZING CAPITAL AT 13.5% ANNUALLY Group ambitions Section 1 A structured approach to capital ratios 13.5% 50bps 12.5% 350/400bps 8.25% CCB P2R P1 SREP Rating/peers Management CET1 Fully Loaded CET1 Phase in Fully Loaded buffer buffer annual ta
Slide 20: We'll Increase Shareholders' Remuneration
…WE’LL INCREASE SHAREHOLDERS’ REMUNERATION… DPS UP 28% OVER 4Y - UP TO €2.5BN DISTRIBUTED OVER 4Y (+50%) Group ambitions Section 1 Distribution policy¹ Dividend per share commitment Total cumulative shareholders’ remuneration (€bn) +28% +50% 0.60 +4x up to 2.5 +10% 0.57 0.3-0.6 0.54 1.6 0.52 0.2 1.9
Slide 21: ...Leaving Room for Additional M&A
…LEAVING ROOM FOR ADDITIONAL M&A TO FEED VALUE CHAIN AND ACCELERATE ORGANIC GROWTH Group ambitions Section 1 M&A 2015 2016 2017 2018 2019 Selected scope of Barclays 50% of Banca Esperia Top player in France Illiquid credit fund Italian activities bought by bought out and Systematic quant. in advisor
Slide 22: CSR Enhancement for All Stakeholders' Benefit
CSR ENHANCEMENT FOR ALL STAKEHOLDERS’ BENEFIT Group ambitions Section 1 CSR AT BOARD LEVEL (competencies, strategies) CSR IN THE PLAN WITH TARGET DISCLOSURE (Sustainable Development Goals framework) CSR TARGETS INCLUDED IN TOP MANAGEMENT LONG-TERM INCENTIVE PLAN €4m per year in projects with positiv
Slide 23: Summarizing: Key Benefit for Shareholders
SUMMARZING: KEY BENEFIT FOR SHAREHOLDERS Group ambitions Section 1 Revenue growth Shift to capital- Enhanced return in a challenging light fee business to shareholders environment Targeting Industry-leading performance Revenues growth Earnings growth Profitability growth Shareholders remuneration gr
Slide 24: Agenda
AGENDA Section 1. Group ambitions Section 2. Divisional ambitions 2.1 Wealth Management 2.2 Consumer Banking 2.3 Corporate & Investment Banking 2.4 Principal Investing 2.5 Holding Functions Section 3. Closing remarks Annex Macro scenario Glossary
Slide 25: MB Wealth Management: Rationale and Opportunities
MB WEALTH MANAGEMENT RATIONALE AND OPPORTUNITIES Divisional ambitions: Wealth Management Section 2.1 Italy one of the most attractive European markets for WM Size worth €4.4tr, in Affluent (€3,5tr) and Private (€1.0tr) segments Largely un-managed Need for “qualified” offering: non-universal banks ga
Slide 26: In an Attractive Market
IN AN ATTRACTIVE MARKET… €4tr WORTH, LARGELY UN-MANAGED , SPECIALIZED PLAYER TAKING MARKET SHARE Divisional ambitions: Wealth Management Section 2.1 €4.4trn Affluent the most Italian wealth €4trn Italian wealth interesting segment in large and largely the WM arena by size Affluent 65% growing €3.5tr
Slide 27: Opportunities Arise for Mediobanca WM Due to Its Distinctive Model
… OPPORTUNITIES ARISE FOR MEDIOBANCA WM DUE TO ITS DISTINCTIVE MODEL Divisional ambitions: Wealth Management Section 2.1 SUSTAINABILITY INNOVATION THROUGH CUSTOMERS’ EYES Large customer base AFFLUENT Easy, efficient, omni-channel Digital excellence since for transactional services Real omni-channel
Slide 28: We Entered 3Y Ago and Are Now a Well-Reputed Player
WE ENTERED 3Y AGO AND ARE NOW A WELL-REPUTED PLAYER Divisional ambitions: Wealth Management Section 2.1 3Y BP16-19 actions MBWM gaining positioning Foster business expansion organically and Wealth management players ranking by TFA¹ (€bn, Dec18 peers, MB as at June19) through M&A (Banca Esperia merge
Slide 29: MB WM: Mission in the Next 4Y
MB WM: MISSION IN THE NEXT 4Y TO BECOME A LEADING ITALIAN PLAYER WITH HIGH GROWTH RATES AND SUSTAINABILITY Divisional ambitions: Wealth Management Section 2.1 In the next few years Mediobanca Wealth Management aims to become: ► An established player in the Affluent segment, by quality and sustainabi
Slide 30: Exploiting Opportunities in Affluent
EXPLOITING OPPORTUNITIES IN AFFLUENT… Divisional ambitions: Wealth Management Section 2.1 POSITIONING OF CHEBANCA!1 OPPORTUNITIES 2.5% Gross Mgt. Fees Affluent: the most attractive segment in the WM arena. Large / AUM (€3.5tr), profitable, with customers more technology-friendly (low Mediolanum cost
Slide 31: ...And in Private/HNWI Segment
…AND IN PRIVATE /HNWI SEGMENT… Divisional ambitions: Wealth Management Section 2.1 POSITIONING OPPORTUNITIES Customer Private banking: valuable and growing segment where MBPB UHNWI segment and CMB could play a distinctive role given their roots, brand, customers and positioning as unique Private-Inv
Slide 32: ...With a Unique IB-PB Offer
…WITH AN UNIQUE IB -PB OFFER COMBINING CORPORATE FINANCE & PERSONAL WEALTH SOLUTIONS DELIVERING SIZEABLE INTRAGROUP SYNERGIES Divisional ambitions: Wealth Management Section 2.1 CORP. & INVESTMENT PRIVATE BANKING BANKING NEEDS NEEDS Source deal flow, coverage, opportunities Investment Clients lookin
Slide 33: ...And Enlarging Capabilities in Distribution
…AND ENLARGING CAPABILITIES IN DISTRIBUTION… SALES FORCE up 60% to >1,400 Divisional ambitions: Wealth Management Section 2.1 WM distribution network up 60% to >1,400 sales people… …to serve a newly segmented affluent customer base… with increasing average portfolio size New client segmentation: +60
Slide 34: ...And in Asset Management Production
…AND IN ASSET MANAGEMENT PRODUCTION… Divisional ambitions: Wealth Management Section 2.1 MAXIMIZING GROWTH AND MARGINS IN THE GROUP VALUE CHAIN REINFORCING RESEARCH & PRODUCT SYNERGIES AMONG TRADITIONAL AND ALTERNATIVE AM MEDIOBANCA SGR CAIRN CAPITAL RAM Pivotal role in defining asset allocation str
Slide 35: We'll Improve Margins & Efficiency While Enlarging Customer Assets
…WE’LL IMPROVE MARGINS & EFFICIENCY WHILE ENLARGING CUSTOMER ASSETS… Divisional ambitions: Wealth Management Section 2.1 Improving fee margin… …while leveraging cost scale… …will boost operating margin From 80 to 90bps AUM/AUA (€bn) Cost/income ratio down 10pp GOP/TFA up 10bps Gross Fees ex performa
Slide 36: ...Fostering High Quality Revenue & Profitability Growth
…FOSTERING HIGH QUALITY REVENUE & PROFITABILTY GROWTH Divisional ambitions: Wealth Management Section 2.1 Revenues up to €0.7bn with a …raise up ROAC to 25% …with unmatched quality more scaled platform… Revenues (€bn) ROAC (%) Pricing in line with the best practices in all areas 4YCAGR 25% +8% High
Slide 37: Agenda
AGENDA Section 1. Group ambitions Section 2. Divisional ambitions 2.1 Wealth Management 2.2 Consumer Banking 2.3 Corporate & Investment Banking 2.4 Principal Investing 2.5 Holding Functions Section 3. Closing remarks Annex Macro scenario Glossary
Slide 38: MB Consumer Banking: Rationale and Opportunities
MB CONSUMER BANKING RATIONALE AND OPPORTUNITIES Divisional ambitions: Consumer Banking Section 2.2 Italian consumer banking an attractive market: Low penetration/low yield environment Banking sector restructuring, with branches reducing massively Upcoming regulation painful for riskier players MB fo
Slide 39: In an Attractive Market
IN AN ATTRACTIVE MARKET… GROWING, WITH LOW PENETRATION AND WITH BANKS CLOSING BRANCHES Divisional ambitions: Consumer Banking Section 2.2 7.5% (% on GDP end-2018) 7.3% 5.9% EU avg. 6% Change in customer Italian market less 4.9% behaviour mature than EU 2.5% (digital shift, goods rental, countries de
Slide 40: ...Leveraging on Our Distinctive Strengths
…LEVERAGING ON OUR DISTINCTIVE STRENGTHS… Divisional ambitions: Consumer Banking Section 2.2 OUTSTANDING SCORING EXCELLENT ASSET QUALITY BROAD & INTEGRATED AND PRICING CAPABILITIES AND INDUSTRIALIZED COLLECTION DISTRIBUTION NETWORK Direct business Compass branches Default rate1 Net NPLs/Loans: 1.4%
Slide 41: ...We'll Confirm Our Strong Positioning
…WE’LL CONFIRM OUR STRONG POSITIONING… Divisional ambitions: Consumer Banking Section 2.2 3Y BP16-19 actions Solid market positioning Consumer lending market trend¹ Leadership in Italy confirmed (YoY new business growth, %) Distribution: proprietary enlarged, indirect confirmed, digital started 20%
Slide 42: ...Continuing on Compass's Growth Trajectory
…CONTINUING ON COMPASS’S GROWTH TRAJECTORY Divisional ambitions: Consumer Banking Section 2.2 Since 2007 Compass’s loan book has tripled… … as have its revenues (now > €1bn) … €bn €m +3x +3x 13.2 996 1,027 12.5 936 11.8 873 11.0 800 10.4 9.1 9.3 9.6 687 713 713 8.4 8.1 8.3 8.8 592 605 638 Linea acqu
Slide 43: MBCB Mission in Next 4Y
MBCB MISSION IN NEXT 4Y FROM INCUMBENT TO ATTACKER ONCE AGAIN Divisional ambitions: Consumer Banking Section 2.2 In the next few years Compass aims to be a frontrunner in consumer banking, well positioned to take advantage of macro-changes in customer behaviours and sector trends due to proven leade
Slide 44: Leveraging on Strong Investments in Direct Distribution
LEVERAGING ON STRONG INVESTMENTS IN DIRECT DISTRIBUTION… OPENING BRANCHES AND AGENCIES AT VARIABLE COSTS (5X) Divisional ambitions: Consumer Banking Section 2.2 Compass direct franchise trend COMPASS Higher “value” of Compass branch distribution: BRANCH roughly double vs third parties’ channels +75%
Slide 45: ...Embracing Innovation in Product and Channel
…EMBRACING INNOVATION IN PRODUCT AND CHANNEL… WITH FOUR MAIN NEW PROJECTS Divisional ambitions: Consumer Banking Section 2.2 INNOVATION PRODUCT DISTRIBUTION 1 CLOSED LOOP CARD 3 PP-ONLINE Revolving credit card (designed by Compass on Existing online platform strong enhancement with: MasterCard circu
Slide 46: ...To Keep the Value of Integrated Distribution Strong
…TO KEEP THE VALUE OF INTEGRATED DISTRIBUTION STRONG IN THE NEW SCENARIO Divisional ambitions: Consumer Banking Section 2.2 Compass new loan business up to €8bn … …with a shift in new PP distribution channels direct up from 47% to 67% Total loans new business by product, €bn Personal loans new busin
Slide 47: ...We'll Deliver Growth and Sound Profitability
…WE’LL DELIVER GROWTH AND SOUND PROFITABILITY Divisional ambitions: Consumer Banking Section 2.2 Enlarged network supports further …delivering revenues > €1.1bn… …and still impressive profitability loan book growth… Loan book (€, bn) Revenues (€, m) ROAC (%) 4YCAGR 3YCAGR +2% 4YCAGR +6% 3YCAGR +3% +
Slide 48: Agenda
AGENDA Section 1. Group ambitions Section 2. Divisional ambitions 2.1 Wealth Management 2.2 Consumer Banking 2.3 Corporate & Investment Banking 2.4 Principal Investing 2.5 Holding Functions Section 3. Closing remarks Annex Macro scenario Glossary
Slide 49: MB Corporate and Investment Banking: Rationale & Opportunities
MB CORPORATE AND INVESTMENT BANKING RATIONALE & OPPORTUNITIES Divisional ambitions: CIB Section 2.3 Investment Banking is the native business of Mediobanca Strong market positioning: leader in Italy, with a growing footprint in Europe Cornerstone of Mediobanca business diversification strategy Resil
Slide 50: In a Challenging Environment for Investment Banks
IN A CHALLENGING ENVIRONMENT FOR INVESTMENT BANKS… Divisional ambitions: CIB Section 2.3 M&A fees in Europe ($bn)1 CAGR: -2% CAGR: +8% Boutique advisory firms European IB’s revenue pool has gaining market share in 3.8 4.1 been shrinking since 2010 3.2 2.4 M&A in Europe¹ from (CAGR-5% to $71bn in 201
Slide 51: Opportunities Arise for Mediobanca CIB Due to Its Distinctive Model
… OPPORTUNITIES ARISE FOR MEDIOBANCA CIB DUE TO ITS DISTINCTIVE MODEL… Segmental division: CIB Section 2.3 STRONG BRAND RECOGNITION AND BOUTIQUE-LIKE ORGANIZATION STRONG FOOTPRINT TRUSTWORTHINESS M&A: 80% revenues customer-driven Pan-European presence First in Italy with >100 deals in last 3Y in Ita
Slide 52: ...Strong Positioning and Results
… STRONG POSITIONING AND RESULTS… Divisional ambitions: CIB Section 2.3 3Y BP16-19 actions Mediobanca IB - Solid and well-defined market positioning Empower positioning and footprint investing in human talent/coverage Strong solution capabilities Diversify revenues: focus on across the full CIB prod
Slide 53: ...Across Core IB Products
…ACROSS CORE IB PRODUCTS OUTSTANDING IN ITALY, WELL RECOGNIZED IN SOUTHERN EUROPE Segmental division: CIB Section 2.3 Selected M&A transactions M&A Italy – Announced deals (€bn)1 Pending Pending 2018 2018 #37 #7 #61 #13 #9 #5 #11 #3 #24 #5 # deals 14.4 14.0 Tower €11bn 9.3 €40bn combined €16.3bn €47
Slide 54: MB CIB: Mission in the Next 4Y
MB CIB: MISSION IN THE NEXT 4Y PROFITABLE CLIENT-DRIVEN LEADING INVESTMENT BANK IN EUROPE Divisional ambitions: CIB Section 2.3 A leading investment bank in Europe with a specific focus on M&A and Capital Markets services/products to support large and mid-cap clients in their domestic and cross-bord
Slide 55: Empowering Distribution and European Footprint
EMPOWERING DISTRIBUTION AND EUROPEAN FOOTPRINT… Divisional ambitions: CIB Section 2.3 ▲ Selective hiring of senior resources dedicated to coverage (~15 bankers) Origination ♦ Leverage the strategic partnership with MMA Empower the ▲ Boost Sovereign Wealth Funds & Infra sponsors reach ORIGINATION Cov
Slide 56: ...Fostering Mid Corporate Segment Growth
…FOSTERING MID CORPORATE SEGMENT GROWTH… Divisional ambitions: CIB Section 2.3 Mediobanca set to become the reference investment bank for medium-size corporates effectively increasing coverage effort on the segment while intensifying cross-fertilization with IB and PB KEY STRATEGIC INITIATIVES 2020-
Slide 57: ...And with an Efficient Capital Use in Asset-Based Business
…AND WITH AN EFFICIENT CAPITAL USE IN ASSET-BASED BUSINESS… Divisional ambitions: CIB Section 2.3 Capital absorption to be reduced through: - A more profitable use of capital in lending: O2D MODEL and SECURITIZATION - Adoption of new risk-sensitive capital measures under standard model CREDIT MARKET
Slide 58: ...CIB Will Deliver Growth in Revenues and Profitability
…CIB WILL DELIVER GROWTH IN REVENUES AND PROFITABILITY Divisional ambitions: CIB Section 2.3 Selective loan portfolio growth Robust growth in revenues driven by Increase in profitability K-light business Loans (€, bn) Revenues (€, bn) ROAC (%) 4YCAGR 4Y CAGR +2% +6% 3YCAGR ~ +4% 16% 0.8 15% 20 18 0.
Slide 59: Agenda
AGENDA Section 1. Group ambitions Section 2. Divisional ambitions 2.1 Wealth Management 2.2 Consumer Banking 2.3 Corporate & Investment Banking 2.4 Principal Investing 2.5 Holding Functions Section 3. Closing remarks Annex Macro scenario Glossary
Slide 60: Principal Investing: Rationale & Opportunities
PRINCIPAL INVESTING RATIONALE & OPPORTUNITIES Divisional ambitions: PI Section 2.4 AG: high-quality investment (A-rated by Fitch) with sound financial performance: AG BP 2018-21 targets: EPS CAGR range +6-8%; payout range 55-65% Consensus:¹ steady growth in net profit (4YCAGR 2019-23: +2%) Investmen
Slide 61: PI: Source of Revenue and Capital
PI: SOURCE OF REVENUE AND CAPITAL Divisional ambitions: PI Section 2.4 3Y BP16-19 actions Assicurazioni Generali 13% AG stake retained as REVENUES/EPS STABILIZER PROFITABLE INVESTMENT Profitable investment Double-digit ROAC1 Capital created through MB organic AG contribution to AG contribution to gr
Slide 62: Agenda
AGENDA Section 1. Group ambitions Section 2. Divisional ambitions 2.1 Wealth Management 2.2 Consumer Banking 2.3 Corporate & Investment Banking 2.4 Principal Investing 2.5 Holding Functions Section 3. Group targets summary Annex Macro scenario Glossary
Slide 63: MBHF Rationale: An Optimized Corporate Centre
MBHF RATIONALE AN OPTIMIZED CORPORATE CENTRE Divisional ambitions: HF Section 2.5 Comprehensive corporate centre division combining: Treasury/ALM Common business services Non-core businesses (leasing) Optimized Treasury/ALM centre Treasury optimized through the reduction of extra liquidity Funding e
Slide 64: All Funding Channels Fully Deployed
ALL FUNDING CHANNELS FULLY DEPLOYED MB GROUP WITH COMFORTABLE LIQUIDITY AND FUNDING POSITION Divisional ambitions: HF Section 2.5 BP19-23 Action Plan Diversified funding growth with CoF under control Inflows expected from WM deposits (€3bn), secure funding and selective senior bond issuance TLTRO 3
Slide 65: Agenda
AGENDA Section 1. Group ambitions Section 2. Divisional ambitions 2.1 Wealth Management 2.2 Consumer Banking 2.3 Corporate & Investment Banking 2.4 Principal Investing 2.5 Holding Functions Section 3. Closing remarks Annex Macro scenario Glossary
Slide 66: The 4Y Plan Delivery Will Reinforce the Accretive Value Cycle
THE 4Y PLAN DELIVERY WILL REINFORCE Closing remarks THE ACCRETIVE VALUE CYCLE… Section 3 STRONG POSITIONING RESPONSIBLE Distinctive specialized player Able to turn challenging > CSR at Board level with quantitative targets defined macro/sectorial scenario into opportunities, grasping market share CS
Slide 67: ...Through a Journey That Will Position Mediobanca as a Distinctive Specialized Financial Player
…THROUGH A JOURNEY THAT WILL POSITION MEDIOBANCA AS A DISTINCTIVE AND VALUABLE SPECIALIZED FINANCIAL PLAYER… Closing remarks Section 3 CONSISTENCY MB continues on its growth roadmap with focus on specialized, high-margin, capital light, long-standing growing businesses with one of the lowest risk/hi
Slide 68: ...Alongside Peers with Similar Growth and Risk
…ALONGSIDE PEERS WITH SIMILAR GROWTH AND RISK Closing remarks Section 3 CURRENT peer set TARGETED peer set P/E 20E multiple¹ P/E 20E multiple¹ Average: 8.6x Average: 13.4x Mediobanca 10.9 Fineco 23.8 ISP Banca Generali 15.5 10.4 Mediolanum 14.7 MPS 10.4 Azimut 13.3 Credem 9.6 Vontobel 11.9 BPER 8.0
Slide 69: Group Targets
GROUP TARGETS Closing remarks Section 3 Remuneration¹ FY19 FY20 FY21 FY22 FY23 TOT 4Y DPS - € 0.47 0.52 0.54 0.57 0.60 1.9bn Chg. % +10% +5% +5% +5% +28% Buyback² with shares cancelled: to optimize CET1 phase-in annually at 13.5%, after M&A €0.3-0.6bn Group Target June19 June23 4Y CAGR Divisional Ta
Slide 70: Strategic Guidelines FY 2019-23
STRATEGIC GUIDELINES FY 2019-23 MEDIOBANCA DISTINCTIVE AND SUSTAINABLE SPECIALIZED FINANCIAL 12 November 2019
Slide 71: Agenda
AGENDA Section 1. Group ambitions Section 2. Divisional ambitions 2.1 Wealth Management 2.2 Consumer Banking 2.3 Corporate & Investment banking 2.4 Principal Investing 2.5 Holding Functions Section 3. Group targets summary Annex Macro scenario Glossary
Slide 72: Macro Scenario
MACRO SCENARIO Macro Scenario Annex Euro Area, IT GDP (Y/Y) Euribor 3M1 0.0% 1.2% 1.2% 1.2% (0.2%) 1.2% 1.0% (0.4%) (0.3%) 0.6% 0.7% (0.6%) (0.5%) 0.4% (0.6%) (0.6%) (0.6%) 0.3% (0.8%) 0.1% (1.0%) June 19 June 20 June 21 June 22 June 23 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Euro Area IT BTP-Bund spread
Slide 73: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking DPS Dividend per share WB Wholesale banking EPS Earning per share SF Specialty finance ESG Environmental, Social, Governance CB Consumer banking FAs Financial Advisors FVOCI Fair Value to
Slide 74: Disclaimer
DISCLAIMER Disclaimer This document includes certain projections, estimates, forecasts and consequent targets which reflect the current views of Mediobanca – Banca di Credito Finanziario S.p.A. (the “Company”) with regard to future events (“forward- looking statements”). These forward-looking statem
Slide 75: Investor Contact Details
INVESTOR CONTACT DETAILS Mediobanca Group Investor Relations Piazzetta Cuccia 1, 20121 Milan, Italy Jessica Spina Tel. no. (0039) 02-8829.860 Luisa Demaria Tel. no. (0039) 02-8829.647 Matteo Carotta Tel. no. (0039) 02-8829.290 Marcella Malpangotto Tel. no. (0039) 02-8829.428 Email: investor.relation