Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — H1 2001 Earnings Presentation
30 slides from Banca Mediolanum SpA's earnings presentation, 2001
Slide 1: H1 2001 Consolidated Reclassified Results
ound MEDIO HI 200] Consolidated Reclassified Results
Slide 2: Evolution of Embedded Value - Italy
Evolution of Embedded Value - Italy * Euro millions Value of 1,758 in-force business 1,399 __) Shareholders’ equity 94 95 96 97 98 99 00 H100 H101 * including Fibanc goodwill
Slide 3: H1 2001 Embedded Value Assumptions
HI 200] Embedded Value Assumptions 5.10% 25.10% Seyrayated Funds AVESUMEN eu mam 6.85% <2>6.85% Unit-linked Funds 7.75% =>7.75%
Slide 4: H1 2001 Embedded Value Earnings - Italy
H1 200] Embedded Value Earnings - Italy * Euro millions Change over the year Dividends paid * pre Fibanc goodwill
Slide 5: H1 2001 EV Earnings Components - Italy
HT 200] EV Earnings Gormponents - Italy * Details Euro millions > Expected return in EV 49 89 >» Economic assumpt. changes 0 8 > Tax assumption changes 0 8 > Experience variances *** 1 (82) >» Mutual Funds conversion (19) — Earnings on initial EV 31 37 23 > New Life business 102 59 195 > New MLE & M
Slide 6: Details of Experience Variances
HT 200] EV Earnings Gormponents - Italy * Details of Experience Variances Euro millions zi > Operating assumptions (11) > Surrenders/paid-ups > NAV variation > Technical reserves variation > Operating variation > Life transformation > Other * pre Fibanc goodwill
Slide 7: H1 2001 Assets under Administration
HI 200] Assets under Administration Euro millions Life Reserves 6,513.1 Mutual Funds & M.A. 9,653.3 Bank Assets 4,269.9 Institutional Assets 387.0 - Consolidation Adjustments -3,133.2 Fibanc PCONSOOMTEDTOTAL 86238) 147905) 306%,
Slide 8: Life Insurance Assets
Life Insurance Assets - Italy Euro millions ECU ee UbU0 macHante ne Life Reserves 6,513.1 5,799.3 +12.3% > Traditional 2,163.3 2,627.2 = -17.7% > Index-linked 1,799.2 1,424.9 = +26.3% > Unit-linked 2,550.6 1,747.2 +46.0% Life Reserves in own Mutual Funds -2,858.2 -2,170.1 +31.7%
Slide 9: Mutual Fund & Managed Account Assets
Mutual Fund & Managed Account Assets - Italy Euro millions EST soso ates) Italy-based Funds 2,278.8 3,079.0 -26.0% > Equity Funds 1,532.9 2,058.6 “25.5% > Bond Funds 521.2 703.3 25.9% > Monetary Funds 224.7 317.1 29.1% lreland-based Funds 7,225.8 5,287.2 +36.7% > Equity Funds 5,349.1 3,726.2 +43.6%
Slide 10: Bank Assets
Bank Assets - Italy Euro millions Cash under Deposits 1,758.0 1,037.0 +69.6% Securities under Deposits 2,023.5 1,555.1 +30.1% Repurchase Agreements 462.7 25.8 Subordinate Loans 25.7
Slide 11: H1 2001 Bank Account Growth - Italy
H1 200] Bank Account Growth - Italy Active Bank Accounts) 184,000 (—'> 266,000 + 45%
Slide 12: H1 2001 Distribution Network - Italy
H1 200] Distribution Network - Italy No. of Agents >» Non-licensed Financial Advisors 2,034 1,728 = +17.7% » Licensed Financial Advisors 3,473 2,882 +20.5% Banca Mediolanum* 5,507 4,610 +19.5% * o/w Financial Executives 818 571 +43.3% Partner Time 1,638 663) = +147.1%
Slide 13: Partner Time Premium Income
"Partner. lime’ Premium Income New Recurring Premiums Euro million 10.5% of total Mediolanum Recurring 96 97 98 99 00
Slide 14: olders i +21%
olders 116 000 i +21% 51,000 [> +27%
Slide 15: H1 2001 Gross Inflows - Italy
HT 200] Gross Inflows - Italy Mutual Funds & M.A.* Euro millions Italy-based Funds 246.0 511.9 = -51.9% > Equity Funds 149.8 306.4 “51.1% > Bond Funds 46.7 79.3 41.1% > Monetary Funds 49.5 126.2 -60.8% lreland-based Funds 572.9 1,171.4 = -51.1% > Equity Funds 469.6 988.1 “52.5% > Protected Funds 0.5
Slide 16: H1 2001 Gross Premiums written
HT 200] Gross Premiums written - Italy Euro millions > Recurring Policies 86.9 46.3 > Single Premium Policies 361.0 420.7 Total New Business 447.9 467.0 Total Business in-force 254.1 212.1
Slide 17: H1 2001 Net Inflows
H1 200] Net Inflows - Italy Euro millions ) Hai200) Hil200o) Chane Managed Assets 982.0 971.6 8 +1.1% > Mutual Funds & M.A. 539.4 588.1 8.3% > Life Policies 442.6 383.5 = +15.4% Administered Assets 850.0 661.9 +28.4% > Securities * 354.2 341.2 +3.8% > Cash 495.8 320.7 +54.6% * actual data (the preli
Slide 18: H1 2001 Economic Results
H1 200] Economic Results - Italy Euro millions Total Revenues 843.5 853.5 1.2% Profit before Tax & E.l. 73.6 87.5 -15.9% Extraordinary Items 0.0 1.6 Profit before Tax 73.6 89.1 = -17.4% Income Tax -18.7 25.6 -27.0%
Slide 19: H1 2001 Profit before Tax & EI - Italy
HI 200] Profit before Tax & El. - Italy Breakdown by Business Line Life Insurance Mutual Funds Bank Business (excl. Adv. Investments) Other Operations Euro millions Ea ae 55.2 47.2 +16.9% 26.5 39.7 -33.2% -2.4 8.3 +125.0% “98.8% -5.4 0.1 “2.7 -190.0%
Slide 20: H1 2001 Total Revenues
HI 200] Total Revenues - Italy Euro millions Premium Income 702.0 679.1 +3.4% - Reinsurance ceded -6.0 75 -20.0% Commission Income 106.9 148.0 -27.8% Bank Revenues 37.5 30.9 +21.4% Other Commissions & Other Revenues 3.1 3.0 +3.3%
Slide 21: H1 2001 Premium Income
H1 200] Premium Incorne - Italy Euro millions > Individual Pension Plans 77.9 46.0 +69.3% > Investment Policies 8.6 - - > Open Pension Funds 0.4 03 433.3% Recurring Policies 46.3 487.7% > Traditional Policies 16.1 6.0 +168.3% > Unit-linked Policies 114.7 106.2 +8.0% > Index-linked Policies 230.2 308
Slide 22: H1 2001 Commission Income
HT 200] Gommission Income ~ - Italy Euro millions Entry Fees 58.5 -52.5% 0/w Irish Funds 41.2 -51.9% Management Fees 60.3 +13.6% 0/w Irish Funds 37.3 +37.5% Performance Fees 29.2 -63.7% 0/w Irish Funds 3.0 17.9 -83.2% * Mutual Funds only
Slide 23: H1 2001 Bank Revenues
H1 200] Bank Revenues - Italy Euro millions Interest Spread 10.0 +62.0% Service Margins 20.9 +1.9% > Securities 7.0 11.1 -36.9% > Managed Accounts 7.9 3.1 = +154.8% > Other Services 6.4 6.7 4.5%
Slide 24: H1 2001 Costs
HT 200] Gosts - Italy Euro millions eo HOOT a cianey Claims, Benefits paid, Changes in Reserves 583.6 602.4 Recov. from Reinsurance -8.6 -9.1 Acquisition Costs 105.5 108.7 G&A Expenses 81.7 65.1 Advertising Expenses 5.8 11.1 Depreciation 16.7 13.4
Slide 25: Benefits paid & Changes in Reserves
Benefits paid & Ghanges in Reserves - Italy Euro millions Benefits paid 271.0 298.8 9.3% > Claims & Maturities 108.3 63.1 +71.6% > “Pull in our Nets” -_ 22.8 > Surrenders 162.7 212.9 -23.6% Changes in Reserves (less Policyholders’ interests) 312.6 303.5 +3.0%
Slide 26: H1 2001 Economic Results - Spain
H1 200] Economic Results - Spain Euro million Total Revenues Profit before Tax & E.I. 1.3 Extraordinary Items 0.1 Profit before Tax 1.4 Income Tax -0.5
Slide 27: H1 2001 Net Consolidated Effect - Spain
H1 200] Net Gonsolidated Effect - Spain Euro million Profits from Minority Interests Goodwill Depreciation
Slide 28: H1 2001 Economic Results - Consolidated
HI 200] Economic Results - Gonsolidated Euro millions Total Revenues 865.5 +1.4% Profit before Tax & E.l. 69.5 -20.6% Extraordinary Items 0.1 . 93.7% Profit before Tax 69.6 21.9% Income Tax -19.1 “25.3% Profit from Minority Interests -0.2
Slide 29: Online banking customers, April 2000 - June 2001
www.bancamediolanum. it April 2000 - June 2001 On-line Gurrent Accounts)" » 177,000 Oine Customers 265,000 Active raters > 25,000 Average April-June 2001 Loe CNET , 257,000
Slide 30: Direct Channel Contacts
Direct Ghannel Gontacts June 200] Automated 7.0% System 20%