Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — H1 2018 Earnings Presentation
86 slides from Banca Mediolanum SpA's earnings presentation, Jul 31, 2018
Slide 1: H1 2018 Results & Business Update
July 31, 2018 H1 2018 RESULTS & BUSINESS UPDATE
Slide 2: Table of Contents
BMED 2 Table of Contents H1 2018 Results and colour key H1 2018 Group Results 3 H1 2018 Domestic Market Results 17 H1 2018 Foreign Markets Results 34 Business Update 39 Mediolanum Facts 54
Slide 3: H1 2018 Group Results
3 H1 2018 Group Results
Slide 4: H118 Key Takeaways
Q1 2018 4 H118 Key Takeaways Group H1 beats consensus thanks to exceptional Q2 • Contribution Margin: +8% shows healthy Commission Income & sustainable growth across the board • Operating Margin: +21% proves the strength of underlying business, despite costs from new initiatives • Net Interest Incom
Slide 5: Income Statement
H1 2018 5 Income Statement Group € mn H118 H117 Change Entry fees 25.6 44.3 -42% Management fees 501.2 475.8 +5% Net Insurance revenues ex U-L commissions 15.6 17.5 -11% Banking service fees 47.1 42.7 +10% Other fees 25.6 19.2 +33% Gross Commission income 615.2 599.6 +3% Acquisition costs (257.1) (2
Slide 6: Income Statement by Quarter
H1 2018 6 Income Statement by Quarter Group € mn Q117 Q217 Q317 Q417 Q118 Q218 Entry fees 19.8 24.5 16.0 16.6 14.1 11.6 Management fees 233.6 242.2 246.2 254.1 250.3 250.9 Net Insurance revenues ex U-L commissions 9.4 8.2 4.5 7.1 6.3 9.4 Banking service fees 21.8 20.9 20.2 21.5 24.0 23.1 Other fees
Slide 7: New Initiatives Net Benefits
H1 2018 7 New Initiatives Net Benefits Group New initiatives objective is to deliver tangible benefits in the short term - Acquired Dec. 2017 - Created Dec. 2017 - Loans granted in H118: € 125 mn - Nominated Advisor (NOMAD) since June 2018 - Market share in just 6 mos.: 6% - Contact made with over 2
Slide 8: Cost/Income Ratio Target
H1 2018 8 Cost/Income Ratio Target Group 2016 2017 H1 2018 Target 2020 • 3-year Target: Cost/Income Ratio to 48% • H1 2018 higher than 2016 & 2017 due to 52% new initiatives that will add to the bottom line 50% 50% • EuroCQS 48% • Investment Banking • AM Team in Ireland • Wealth Management Cost: G&A
Slide 9: Quarterly Commission Income from Mgmt Fees
H1 2018 9 Quarterly Commission Income from Mgmt Fees Group € mn 250 200 150 234 242 246 254 250251 217 223 100 195 209 207 204 201 208 154 164 175 179 129 139 144 151 50 110 111 117 123 81 86 91 94 100 105105104104 59 66 72 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
Slide 10: Quarterly Net Interest Income
H1 2018 10 Quarterly Net Interest Income Group € mn 90 80 70 60 50 84 40 73 75 80 75 72 74 64 65 64 63 65 62 30 53 60 59 58 59 59 61 60 60 47 45 49 46 45 41 44 43 41 41 47 20 41 36 35 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 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Quarterly Recurring Revenues
H1 2018 11 Quarterly Recurring Revenues Group Commission Income from Mgmt Fees + NII (€ mn) 350 300 250 200 150 292 289 295 291 297 273 270 269 262 268 277 271 279 257 233 239 218 216 213 222 100 194 186 197 199 201 203 164 177 141 149 159 122 121 128 50 106 111 112 111 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 12: AUA/AUM Trend
H1 2018 12 AUA/AUM Trend Group € bn 10y CAGR 10% 75.7 76.2 Administered Assets (H118: € 20.3 bn) 68.8 Managed Assets (H118: € 55.9 bn) 62.1 56.5 50.2 44.7 39.5 39.8 34.8 29.8 30.1 27.7 25.6 20.4 19.9 22.0 23.6 17.9 13.0 9.5 7.2 3.1 4.7 5.3 5.5 6.1 0.1 0.6 0.9 1.3 1.6 2.0 2.6 85 86 87 88 89 90 91 92
Slide 13: Assets under Administration/Management
H1 2018 13 Assets under Administration/Management Group € mn 30/06/18 31/12/17 Change 30/06/17 Change Mutual Funds & U-L Policies 50,109.1 50,006.8 +0% 47,159.8 +6% ’Freedom’ Life Policies 169.9 183.8 -8% 212.1 -20% Other Life Insurance products 1,428.8 1,412.4 +1% 1,391.8 +3% Banking 18,914.0 18,80
Slide 14: H1 2018 Net Inflows
H1 2018 14 H1 2018 Net Inflows Group € mn H1 2018 H1 2017 Managed Assets +1,664 +2,592 o/w Mutual Funds, U-L & Managed Accounts +1,765 +2,960 Administered Assets +452 -286 GROUP TOTAL NET INFLOWS +2,116 +2,306 Managed Assets +1,422 +2,281 o/w Mutual Funds, U-L & Managed Accounts +1,467 +2,603 Admini
Slide 15: Capital Adequacy
H1 2018 15 Capital Adequacy Group € mn – as at 30/06/2018 FY17 H118 H118 PRO-FORMA* GROUP CAPITAL RATIOS Total Capital Ratio 22.0% 16.3% 19.8% Common Equity Tier 1 Ratio 21.9% 16.2% 19.8% Total Regulatory Capital Held 2,039 1,637 1,936 Required Capital – Banks ** 757 786 801 Solvency Capital Req. –
Slide 16: Banking Book
H1 2018 16 Banking Book Group € bn - nominal values – as at 30/06/2018 New Framework H1 2018 Book: € 15.47 bn FY 2018 Book: € 13.62 bn Sector % Government 99.1% Financial 0.9% HTC HTC 14% 86% 74% HTCS HTCS 26% Govies % Italy 98.0% Spain 1.6% Other 0.4% H2 estimates include: Avg. Duration Avg. Maturi
Slide 17: H1 2018 Domestic Market Results
17 H1 2018 Domestic Market Results
Slide 18: Income Statement - Domestic Market
H1 2018 18 Income Statement Domestic Market € mn H118 H117 Change Entry fees 19.7 38.1 -48% Management fees 467.2 446.4 +5% Net Insurance revenues ex U-L commissions 10.1 11.2 -10% Banking service fees 34.6 30.9 +12% Other fees 24.5 18.2 +34% Gross Commission income 556.1 545.0 +2% Acquisition costs
Slide 19: Income Statement by Quarter - Domestic Market
H1 2018 19 Income Statement by Quarter Domestic Market € mn Q117 Q217 Q317 Q417 Q118 Q218 Entry fees 16.8 21.4 13.4 13.8 10.9 8.8 Management fees 219.4 227.0 230.6 237.6 233.3 233.9 Net Insurance revenues ex U-L commissions 6.1 5.1 2.1 3.7 3.5 6.6 Banking service fees 16.1 14.9 14.2 15.2 17.8 16.8 O
Slide 20: Acquisition Costs in detail
H1 2018 20 Acquisition Costs in detail Domestic Market € mn H118 H117 Change One-time commissions 30.1 41.3 -27% Ongoing commissions 162.7 154.6 +5% Total commissions 192.9 195.9 -2% Incentives on individual net inflows 19.4 22.7 -14% Contests & bonuses 5.5 6.9 -20% Reimbursement of costs for custom
Slide 21: Mutual Funds AUM Trend
H1 2018 21 Mutual Funds Domestic Market AUM Trend € bn – including U-L assets 50.0 50.1 44.2 39.8 35.3 29.2 23.7 19.6 20.0 15.5 15.2 15.8 14.1 11.0 11.7 8.7 9.6 8.4 10.0 7.4 5.0 3.7 4.0 3.8 3.8 4.3 1.5 1.9 2.2 0.1 0.6 0.9 1.1 1.3 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 0
Slide 22: Mutual Funds Assets under Management
H1 2018 22 Mutual Funds Domestic Market Assets under Management € mn 30/06/18 31/12/17 Change 30/06/17 Change ’Best Brands’ funds of funds (IRL) 19,169.3 19,655.4 -2% 19,390.0 -1% ’Portfolio’ funds of funds (IRL) 0 316.7 n.s. 330.6 n.s. ’Challenge’ mutual funds (IRL) 13,925.3 14,294.2 -3% 13,969.7 -
Slide 23: Mutual Funds Assets by A.M. company
H1 2018 23 Mutual Funds Domestic Market Assets by A.M. company as at 30/06/2018 – including U-L assets Mediolanum Gestione Fondi (Italy) 21.8% Gamax Management (Luxembourg) 1.6% other A.M. Mediolanum companies International 9.3% Funds (Ireland) 67.3%
Slide 24: Mutual Funds Assets by category
H1 2018 24 Mutual Funds Domestic Market Assets* by category as at 30/06/2018 – including U-L assets Balanced 8% Equity 46% Low High Yield** Bond 39% Yield 5% 34% Money Mkt Other 4% 3% * Flexible funds are classified according to their equivalent risk level ** ‘Low Yield Bond’ segment includes Euro-z
Slide 25: Banking Assets under Administration
H1 2018 25 Banking Domestic Market Assets under Administration € mn 30/06/18 31/12/17 Change 30/06/17 Change Cash Deposits 15,709.8 15,518.1 +1% 15,284.1 +3% Repurchase agreements 37.6 41.4 -9% 31.2 +21% Mediolanum bonds 53.5 80.2 -33% 89.9 -41% 3rd-party structured bonds 367.2 444.4 -17% 482.5 -24%
Slide 26: Banking Lending
H1 2018 26 Banking Domestic Market Lending € mn Nominal Interest Rate 30/06/2018 30/06/2017 Change Mortgages 1.35% 578 446 +30% Personal & Commercial Loans 3.13% 285 290 -2% Salary-backed Loans (EuroCQS) 5.78% 125 - n.a. Total 988 736 +34% 3rd-party loans n.s. 14 17 -18%
Slide 27: Banking Credit Book & Quality
H1 2018 27 Banking Domestic Market Credit Book & Quality € mn – as at 30/06/2018 30/06/18 31/12/17 Change 30/06/17 Change Mortgages 6,002 5,713 +5% 5,370 +12% Personal & Commercial Loans 1,492 1,445 +3% 1,351 +10% Lines of credit 268 276 -3% 292 -8% Salary-backed Loans (EuroCQS) 144 6 n.s. 0 n.s. To
Slide 28: Banking Interest Spread
H1 2018 28 Banking Domestic Market Interest Spread Q218 Q118 Total Cost of Funding 0.14% 0.24% Retail Cost of Funding 0.24% 0.31% Total Interest Income 0.85% 0.97% Retail Interest Income 1.87% 1.96% TOTAL SPREAD 0.71% 0.73% Spread on Retail 1.63% 1.65%
Slide 29: Balance Sheet Highlights
H1 2018 29 Balance Sheet Highlights Domestic Market € mn – as at 30/06/2018 Liabilities Assets Retail 15,871 7,761 Treasury 7,654 15,982 o/w interbank / intra-group deposits & repos 1,606 548 o/w ECB refinancing 0 0 o/w MTS refinancing 6,048 756 o/w securities (bonds) 14,678 Other liabilities / asse
Slide 30: Insurance Life – Policyholders' Assets
H1 2018 30 Insurance Domestic Market Life – Policyholders’ Assets € mn 30/06/18 31/12/17 Change 30/06/17 Change Traditional 1,428.8 1,412.4 +1% 1,375.1 +4% Index-linked 0 0 n.s. 16.7 n.s. Unit-linked pension plans 6,316.0 6,267.6 +1% 5,985.7 +6% Unit-linked endowment policies 3,678.3 3,788.0 -3% 3,7
Slide 31: Insurance Non-Life - Gross Premiums Written
H1 2018 31 Insurance Domestic Market Non-Life - Gross Premiums Written € mn H118 H117 Change New Business 2.9 2.6 +10% In-Force Business 16.4 14.6 +12% Stand-Alone Policies 19.2 17.2 +12% Loan Protection Policies 20.0 15.4 +29% NON-LIFE – GROSS PREMIUMS WRITTEN 39.2 32.6 +20%
Slide 32: Family Banker Network
H1 2018 32 Banca Mediolanum Domestic Market Family Banker® Network Change in headcount & Split by average portfolio – Year 2018 +66 26% 27% > € 20 mn -67 -4 € 10-20 mn X% 37% 36% € 5-10 mn 4,254 4,249 24% Turnover rate 24% € 1-5 mn (annualised) 3.3% 11% 10% 2% X% 3% < € 1 mn Avg. 01/01 Resigned Reti
Slide 33: Focus on 'Private Bankers' and 'Wealth Advisors'
H1 2018 33 Banca Mediolanum Domestic Market Focus on ‘Private Bankers’ and ‘Wealth Advisors’* as at 30/06/2018 Private Bankers (over € 25 mn AUM)Bankers Wealth Advisors Private ( > € 60 mn AUM) Wealth Advisors (over € 60 mn AUM) Average assets in portfolio 38.3 121.2 562 o/w managed assets 28.8 89.4
Slide 34: H1 2018 Foreign Markets Results
34 H1 2018 Foreign Markets Results
Slide 35: Spain Highlights
H1 2018 35 Spain Foreign Markets Highlights € mn H118 H117 Change vs.FY17 Net Income 8.2 7.7 +6% Managed Assets 3,523.1 2,999.7 +17% +6% Administered Assets 1,384.6 1,346.7 +3% +4% Total Assets 4,907.7 4,346.4 +13% +5% Gross Inflows into Managed Assets 916.2 690.1 +33% Net Inflows into Managed Asset
Slide 36: Germany – Total Highlights
H1 2018 36 Germany – Total Foreign Markets Highlights € mn H118 H117 Change vs.FY17 Net Income (5.1) (5.3) -5% Managed Assets 478.7 466.5 +3% -4% Administered Assets 153.2 142.4 +8% +4% Total Assets 631.8 608.9 +4% -2% Gross Inflows into Managed Assets 45.6 35.2 +30% Net Inflows into Managed Assets
Slide 37: Germany – Bankhaus August Lenz Highlights
H1 2018 37 Germany – Bankhaus August Lenz Foreign Markets Highlights € mn H118 H117 Change vs.FY17 Net Income (7.0) (6.6) +5% Managed Assets 279.5 267.0 +5% -4% Administered Assets 153.2 142.4 +8% +4% Total Assets 432.6 409.3 +6% -1% Gross Inflows into Managed Assets 42.7 29.9 +43% Net Inflows into
Slide 38: Germany – Gamax Highlights
H1 2018 38 Germany – Gamax Foreign Markets Highlights € mn H118 H117 Change vs.FY17 Net Income 1.9 1.3 +44% Assets under Management 199.2 199.5 -0% -5% Gross Inflows 3.0 5.3 -44% Net Inflows -7.8 -3.3 +137%
Slide 39: Business Update
39 Business Update
Slide 40: June 2018 Net Inflows
40 June 2018 Net Inflows Business Update € mn Jun '18 YTD ‘18 YTD ‘17 Managed Assets +437 +1,664 +2,592 o/w Mutual Funds, U-L & Managed Accounts +437 +1,765 +2,960 Administered Assets +35 +452 -286 GROUP TOTAL NET INFLOWS +472 +2,116 +2,306 Managed Assets +394 +1,422 +2,281 o/w Mutual Funds, U-L & M
Slide 41: Activation of Instalment Plans
41 Activation of Instalment Plans Business Update existing & new contracts Jan-Jun 2018 vs. Jan-Jun 2017: +236% 3.900 80.000 No. of plans: 68,400 vs. 29,000 3.800 70.000 3.700 68.400 60.000 3.600 50.000 3.500 40.000 3.400 30.000 3.300 29.000 20.000 3.200 10.000 3.100 0 Jan-Jun 2017 Jan-Jun 2018
Slide 42: PIR – Piani Individuali di Risparmio
42 PIR – Piani Individuali di Risparmio Business Update launched March 2017 Individual Savings Plans introduced by 2017 Budget Law Mediolanum (inspired by UK ISA & French PEA) Flessibile Sviluppo Italia Tax exemptions of Capital Gains & Inheritance taxes Italy-based flexible fund, launched in 2013 •
Slide 43: Net Inflows into Mutual Funds
43 Net Inflows into Mutual Funds* Business Update € mn 15000 600 10000 400 5000 200 0 0 Feb 05 Feb 17 Feb 00 Feb 01 Feb 02 Feb 03 Feb 04 Feb 06 Feb 07 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12 Feb 13 Feb 14 Feb 15 Feb 16 Feb 18 Aug 02 Aug 00 Aug 01 Aug 03 Aug 04 Aug 05 Aug 06 Aug 07 Aug 08 Aug 09 Aug 10 Au
Slide 44: Italian Sales Networks Ranking by Net Inflows into M.F.
44 Italian Sales Networks Business Update Ranking by Net Inflows into M.F. € thousands - totals by Group Jan-May 2018 Mutual Funds* Managed Assets Total Net Inflows Banca Fideuram (incl. Sanpaolo) 2,601,834 2,794,496 4,502,365 Banca Mediolanum 1,070,003 1,065,493 1,433,308 Allianz Bank 1,023,237 1,0
Slide 45: Top Performer in Customer Experience
45 Top Performer in Customer Experience Business Update ‘Customer Experience Excellence’ June 2018: KPMG-Nunwood published the Ranking ‘2018 Customer Experience Excellence’ research on all international brands present in Italy #1 - Financial Institutions, #3 - All Italian Brands #7 - All Sectors «BM
Slide 46: Technological Platform: Innovation is in our DNA
46 Technological Platform Business Update Innovation is in our DNA We create value for our Customers by by exploiting the best technology available to serve them Investments in technology allow us to build strong relationships thanks to the usability & simplicity of our digital platform (2017 retent
Slide 47: Technological Platform: Making the difference in Mifid2
47 Technological Platform Business Update Making the difference in the Mifid2 environment We provide our Family Bankers with an ecosystem of tools DIGITALIZATION designed to manage - among others -the new challenges of Mifid 2 Benefits are tangible: LESS PAPERWORK • wider array of advisory services
Slide 48: The 3rd best known bank brand in Italy
48 The 3rd best known bank brand in Italy Business Update Spontaneous brand awareness – Italian banks – June 2018 53% 22% 49% 20% 44% 19% 27% 16% 26% 14% source: GFK Eurisko
Slide 49: Banca Mediolanum Customer Behaviour
49 Banca Mediolanum Business Update Customer Behaviour as at 30/06/2018 1,049,294 primary account holders in Italy: …61% of which use Mediolanum as their primary banking institution 899,738 with a 550,916 vs. 531,655 as at 31/12/2017 (no bank account) bank account… …36% of which stated in a 2017 sur
Slide 50: Direct Channel Accesses
50 Banca Mediolanum Business Update Direct Channel Accesses 40 millions of accesses 57% 35 30 48% 60% 25 68% 50% 42% 62% 34% 20 38% 15 27% 31% 10 17% 5 10% 6% 8% 5% 7% 5% 6% 5% 4% 4% 3% 3% 0 2013 2014 2015 2016 2017 H1 2018 Website Mobile Interactive Voice Responder Banking Centre Reps
Slide 51: Investment Banking Division
51 Investment Banking Division Business Update opened December 2017 To assist SME entrepreneurs (both customers & prospects) with corporate finance needs in order to grow their business Financial advisory services, such as general financial health check-ups, M&A consulting, corporate sales, access t
Slide 52: Salary-backed Loans
52 Salary-backed Loans Business Update Healthy-margin, low-risk business Salary-backed loans designed for individuals with few or no assets Involve an agreement between the bank, the customer & the employer 85% of the market consist of state employees (incl. teachers) & retirees on a pension Monthly
Slide 53: Mutual Funds AUM: BMED Market Share, Assets, Rank
53 Mutual Funds AUM Business Update BMED Market Share, Assets , Rank Market Share – Jun 2018 6% 50 Intesa Sanpaolo 20.1% 45 Amundi 11.7% 5% Generali 8.1% 40 Anima 7.9% 35 Blackrock 6.6% 4% 6 Mediolanum 4.6% 30 JP Morgan 3.7% 3% 4 25 Azimut 3.2% 5 UBI Banca 3.2% 6 6 20 Arca 2.8% 2% 8 9 15 Invesco 2.7
Slide 54: Mediolanum Facts
54 Mediolanum Facts
Slide 55: BMED Shareholders & Group Structure
Mediolanum 55 BMED Shareholders & Group Structure Facts as at 30/06/2018 BANKING Banco Bankhaus Mediolanum 100% Mediolanum August Lenz Fiduciaria ASSET Mediolanum Mediolanum Mediolanum MANAGEMENT Gestione Fondi International Funds Gestion S.A. 100% 100% Banca Mediolanum 92% Banca Mediolanum 100% Ban
Slide 56: Integrated Business Model
Mediolanum 56 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 57: Multi-channel Model
Mediolanum 57 Banca Mediolanum’s Multi-channel 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 4,300 ATM Family network CU
Slide 58: Model combines advantages of traditional and direct banks
Mediolanum 58 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 59: Italian Household Financial Assets
Mediolanum 59 Italian Household Financial Assets Facts as at 31/12/2017 – real estate not included Network of Asset Gatherers have only 10% of the huge Italian 30.9% Other (e.g. cash, HH financial assets market, entrepreneurial although recognised as best-in- businesses) class in terms of personal s
Slide 60: Banca Mediolanum's Market Share
Mediolanum 60 Italian Household Financial Assets Facts Banca Mediolanum’s Market Share 1.65% on a total of € 4,268 bn reported 1.5% by Bank of Italy as at 31/12/2017 1.0% 0.5% 0% 05 06 07 08 09 10 11 12 13 14 15 16 17
Slide 61: A 'real' Bank with a Solid Set of Numbers
Mediolanum 61 A ‘real’ Bank with a Solid Set of Numbers Facts as at 30/06/2018 ROE CET1 20.2% 16.2% 10 Y avg. 2008- 2017 Retail Deposits Retail Credit Book € 15.9 bn € 7.9 bn % Gross NPLs % Net NPLs 1.49% 0.75% vs 13.2% Italian Banks* vs 7.5% Italian Banks* * Source: Bank of Italy – ‘Banks and Finan
Slide 62: Net Income Trend
Mediolanum 62 Net Income Trend Facts € mn 10y CAGR 6% 439 394 380 351 337 321 233 224 224 212 217 141 131 129 115 103 88 82 75 67 54 60 38 49 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 2008 & 2010: adjusted net income excluding effects of ‘Lehman Brothers’ operation
Slide 63: Dividend Payout
Mediolanum 63 Dividend Payout Facts Mediolanum S.p.A. + Banca Mediolanum S.p.A. (€ mn) 439 xx Net Income 394 Retained Earnings 380 351 Dividends paid 337 100 321 217 86 233 153 122 74 224 212 217 224 219 88 78 66 141 107 110 129 131 294 115 103 39 21 88 82 50 67 199 222 221 75 46 30 184 54 60 38 9 1
Slide 64: Net Inflows Trend
Mediolanum 64 Net Inflows Trend Facts € mn A proven ability in converting administered inflows into managed assets 2011-2017: € 29.9 bn of Total Net Inflows, o/w € 27.5 bn into Mutual Funds & Unit-Linked policies 7.000 6,039 5,844 6.000 5,262 5,255 5,169 5,380 5.000 4,632 4,608 4,103 4.000 3,752 3.0
Slide 65: Total Net Inflows Trend - Italy
Mediolanum 65 Total Net Inflows Trend - Italy Facts € mn 5y CAGR 20.4% 7000 XX Total Net Inflows Net Inflows into Administered Assets 6000 5,795 5,638 Net Inflows into Managed Assets 5000 4,662 4,739 4,082 4000 3,437 3,225 3,285 3,339 3,059 3000 2,610 2,280 2,258 2000 1,805 1,689 1,544 1,546 1,265 1
Slide 66: Family Banker Network
Mediolanum 66 Family Banker® Network Facts Group Licensed Financial Advisors 7000 Italy 6000 Spain 5,681 5,555 Germany 5,395 5,247 5,2165,203 5,233 5,054 4,912 5,105 5,158 5,190 5000 4,523 4,599 4,452 4,577 4,114 4000 3,842 3,018 3000 2,513 2,200 2,046 1,915 2000 1,828 1,885 1,581 1,659 1000 0 92 93
Slide 67: Average Assets per Family Banker
Mediolanum 67 Banca Mediolanum Facts Average Assets per Family Banker € mn 6% 16.3 14.8 26% > € 20 mn 23% 13.3 12.2 € 10-20 mn 10.9 X% 9.9 37% 31% 8.5 € 5-10 mn 32% 24% € 1-5 mn 11% 8% X% 2% < € 1 mn Avg. Avg. Portfolio 2011 2012 2013 2014 2015 2016 2017 Portfolio € 8.5 mn € 16.3 mn
Slide 68: Banca Mediolanum Customers
Mediolanum 68 Banca Mediolanum Facts Customers Primary account holders (thousands) 1,049 943 987 1,032 894 915 921 897 886 879 878 907 798 840 761 778 785 715 619 465 495 386 410 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 H1 18
Slide 69: Average Assets per Customer
Mediolanum 69 Banca Mediolanum Facts Average Assets per Customer € thousands Primary Account Holders Primary Bank Account Holders 77.8 79.6 72.7 74.8 70.1 67.2 66.4 65.0 62.0 58.3 57.9 53.5 48.7 42.1 2011 2012 2013 2014 2015 2016 2017
Slide 70: Bank Accounts
Mediolanum 70 Banca Mediolanum Facts Bank Accounts thousands Since March 2005 all new customers are required to open a bank account as their first product 947 964 902 841 729 774 708 582 568 627 534 566 466 339 344 392 297 333 219 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 H1 18
Slide 71: Management Fees History
Mediolanum 71 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% 1.98% 1.95% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 * including insurance commissions on U-L policies
Slide 72: Performance Fees History
Mediolanum 72 Performance Fees History Facts € mn 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 62 50 155 147 93 172 182 176 326 236 214 Group Perf. fees 7 35 1 16 4 2 4 3 6 4 27 14 60 2 11 33 2 Other 2 0 0 Italy-based funds 1 0 59 50 148 136 91 137 152 159 284 219 149 Ireland-based funds 1
Slide 73: Investment Advisory Strategy
Mediolanum 73 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 74: The 'Intelligent Investment Strategy' Service
Mediolanum 74 The ‘Intelligent Investment Strategy’ Service Facts launched June 2016 A long-term investment strategy (10+ yrs, € 30k+) that allows our customers to gradually enter equity markets in order to take advantage of the overall growth of the world economy Designed to remove emotional barrie
Slide 75: 'MyLife' Unit-Linked Policy
Mediolanum 75 ’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 76: Asset & Wealth Management
Mediolanum 76 Asset & Wealth Management Facts designed for our fastest-growing customer segment 2008 2017 HNW Customers (€ 2+ mn) 146 1,380 AUM (€ mn) 730 7,279 a full range of services to meet the needs of the most demanding customers Wealth Planning: optimisation of financial resources, structurin
Slide 77: 'My Style' Managed Account
Mediolanum 77 ‘My Style’ Managed Account Facts launched January 2017 Managed account designed for HNW individuals Invests in Mediolanum funds, 3° party funds, securities & ETFs Allows for a high level of flexibility, diversification and multiple investment styles & strategies Tax optimization on cap
Slide 78: The 'Freedom' Current Account
Mediolanum 78 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 79: Training & Communication: Mediolanum Corporate University
Mediolanum 79 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 80: Training & Communication: Corporate TV Channel
Mediolanum 80 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 81: Marketing Events
Mediolanum 81 Marketing Events Facts Approximately 4,200 events held in 2017: local & high-level events, sports events (e.g. Giro d’Italia), talk shows, etc. Over 224,000 customers & prospects attending Results are measurable: Net inflows into managed assets of invited customers in the 3 months post
Slide 82: Banca Mediolanum's advertising
Mediolanum 82 Banca Mediolanum’s advertising Facts The most memorable in the banking industry Spontaneous recall of bank advertising in Italy – H1 2018 36 21 16 14 9 7 5 5 4 4 source: GFK Eurisko
Slide 83: Ranking of Italian Banking Groups by Market Capitalisation
Mediolanum 83 Ranking of Italian Banking Groups Facts by Market Capitalisation € bn - as at 25/07/2018 Intesa-SanPaolo 42.8 Unicredit 32.4 Mediobanca 7.6 FinecoBank 6.2 Banca Mediolanum 4.3 UBI 4.0 Banco-BPM 4.0 MPS 2.7 Banca Generali 2.6 BPER 2.2 CREDEM 2.0 Pop.di Sondrio 1.6 Banca IFIS 1.4 CREVAL
Slide 84: Price Return & Total Return Index
Mediolanum 84 MED.MI / BMED.MI Facts Price Return & Total Return Index* 1200% Price Return Reinvested Total Return 1000% 800% 600% 400% 200% 0% * Total Return Index includes dividend reinvestments, June 3, 1996 – Jun 21, 2018 source: Datastream
Slide 85: Disclaimer
85 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 86: Investor Relations contacts
86 Investor Relations contacts Alessandra Lanzone Banca Mediolanum +39-02-9049.2039 alessandra.lanzone@mediolanum.it S.p.A. Via Francesco Sforza 15 20080 Basiglio MI – Italy Lisa Maxon +39-02-9049.2997 http://www.bancamediolanum.it lisa.maxon@mediolanum.it Luca Pugliese +39-02-9049.2721 luca.puglies