Banca Generali S.p.a. · MIL:BGN
Banca Generali — Investor Day (February 2022)
90 slides from Banca Generali's investor day presentation, Feb 14, 2022
Slide 1: Investor Day 2022-2024: Taking BG growth to the next level
Investor Day Taking BG growth 2022-2024 to the next level Milan, February 14th 2022
Slide 2: Disclaimer
DISCLAIMER Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. The user of such information should reco
Slide 3: Agenda
AGENDA Taking BG growth to the next level 25 min. 1 Gian Maria Mossa – CEO & General Manager Bringing the Bank even closer to the FA network and Clients 50 min. Andrea Ragaini – Deputy General Manager, Wealth Management, Markets & Products 2 Marco Bernardi – Deputy General Manager, Commercial Networ
Slide 4: Gian Maria Mossa
Gian Maria Mossa CEO & General Manager
Slide 5: Banca Generali exceeded all its 2021 targets
BANCA GENERALI EXCEEDED ALL ITS 2021 TARGETS REINFORCING EXCELLENT TRACK-RECORD OF GROWTH, PROFITABILITY AND DIVIDENDS Objectives KPIs 2 0 2 1 Ta r g e t 2021 Results Status Cumulative Net Inflows >€14.5bn €18.7bn Asset growth Total Assets €76bn-€80bn €85.7bn Core Net Banking Income ≥63 bps 67 bps S
Slide 6: Our new plan will deliver consistent, profitable and remunerative growth
OUR NEW PLAN WILL DELIVER CONSISTENT, PROFITABLE AND REMUNERATIVE GROWTH TARGETING EVEN STRONGER NET INFLOWS, RECURRING NET PROFIT AND DIVIDENDS Objectives KPIs Targets Consistent growth Cumulated net inflows 2022-2024 €18bn–€22bn Increase of recurring net profit1 10%–15% Profitable growth 2021-2024
Slide 7: The FA industry has grown significantly over the past years
THE FA1 INDUSTRY HAS GROWN SIGNIFICANTLY OVER THE PAST YEARS COVID THE CATALYST BEHIND ACCELERATION OF STRUCTURAL INDUSTRY TRENDS Te c h n o l o g y Acceleration of digital adoption Sustainability Greater public awareness Financial Clients advisory industry Covid-19 Pandemic Financial markets Sense
Slide 8: Net Italian household wealth to keep growing
NET ITALIAN HOUSEHOLD WEALTH TO KEEP GROWING NEED FOR ADVICE INCREASING Net Italian Household Wealth €\tn Financial debt Real assets Financial wealth - other Financial wealth - targetable 11.7 10.4 Growing financial wealth driven by 9.6 9.7 savings and positive markets; trend 4.1 3.6 expected to con
Slide 9: Penetration of managed assets rising quickly
PENETRATION OF MANAGED ASSETS RISING QUICKLY WILL KEEP GROWING AS EXCESS CASH IS PUT TO WORK Italian Household Targetable Financial Wealth – Product mix €\tn Deposits Securities Mutual funds and discretionary mandates Insurance 4.1 Strong growth in deposits driven by Managed assets 3.6 low rates env
Slide 10: Private & HNW household wealth has outpaced market growth
PRIVATE & HNW HOUSEHOLD WEALTH HAS OUTPACED MARKET GROWTH AFFLUENT HOUSEHOLDS REPRESENT A SIZEABLE OPPORTUNITY Italian Household Targetable Financial Wealth – Client segmentation €\tn Lower Affluent & Mass Affluent 4.1 Private 0.66m Private & HNW households, HNW 3.6 0.5 whose wealth has outpaced mar
Slide 11: FA networks have expanded their market share
FA NETWORKS HAVE EXPANDED THEIR MARKET SHARE AT THE EXPENSE OF A STILL DOMINANT BRANCH-BASED BANKING SYSTEM Italian Household Targetable Financial Wealth – Distribution channel €\tn Banks Other channels FA Networks Not allocated by channel 4.1 Financial Advisory networks 3.6 significantly expanding
Slide 12: Banca Generali has successfully grown its share across all segments
BANCA GENERALI HAS SUCCESSFULLY GROWN ITS SHARE ACROSS ALL SEGMENTS YET IT IS STILL A «DROP IN THE OCEAN» OF ITALIAN TARGETABLE FINANCIAL WEALTH Reference segment Banca Generali Share 2011 2016 2021E1 Targetable financial wealth 0.9% 1.6% 2.3% Private & HNW financial wealth 1.1% 2.8% 4.6% Financial
Slide 13: The network, powered by technology, has been our key growth engine
THE NETWORK, POWERED BY TECHNOLOGY, HAS BEEN OUR KEY GROWTH ENGINE IN A VIRTUOUS CYCLE OF GROWING BRAND RECOGNITION AND ATTRACTION OF PRIVATE TALENT Total assets €\bn Portfolio size €\m Brand strength Banca Generali Assoreti 1 85.7 37.6 Third private bank 35.1 in Italy by size 32.8 28.8 29.0 25.8 25
Slide 14: Growth is the result of a journey involving bold strategic choices
GROWTH IS THE RESULT OF A JOURNEY INVOLVING BOLD STRATEGIC CHOICES PROVIDING A HARD-TO-MATCH FOUNDATION FOR OUR NEW STRATEGIC PLAN Network Bank Network optimization repositioning re-organization Focus on quality Focus on empowering Focus on bringing of FAs and FAs through WM Managers closer Managers
Slide 15: 2022-24 strategic plan aims to take BG growth to the next level
2022-24 STRATEGIC PLAN AIMS TO TAKE BG GROWTH TO THE NEXT LEVEL BUILDING ON OUR VISION To be the No. 1 To be the n°1 private bank, unique private bank, by value of unique by value service, innovation of service, innovation and sustainability and sustainability 15
Slide 16: Growth through the evolution of the bank: three key pillars
GROWTH WILL BE ACHIEVED THROUGH THE EVOLUTION OF THE BANK BASED ON THREE KEY PILLARS Pillars Value of service Bring the Bank even closer to the FA network and Clients Innovation Continue to build a data-driven, digital and open bank Sustainability Be the ESG reference point for all our Stakeholders
Slide 17: Bring the bank even closer to the FA network and clients
BRING THE BANK EVEN CLOSER TO THE FA NETWORK AND CLIENTS STRATEGIC GUIDELINES ON OFFER, SERVICE MODEL AND NETWORK MANAGEMENT APPROACH 1 st P i l l a r Value of service Bring the Bank even closer to the FA network and Clients Guidelines KPIs Providing FAs with bespoke products, services and Assets un
Slide 18: Continue to build a data-driven, digital and open bank
CONTINUE TO BUILD A DATA-DRIVEN, DIGITAL AND OPEN BANK STRATEGIC GUIDELINES ON DATA, PLATFORMS AND PARTNERSHIPS 2 nd P i l l a r Innovation Continue to build a data-driven, digital and open bank Guidelines KPIs Systematizing data to power our commercial approach, Operating Costs / Data-driven bank b
Slide 19: Be the ESG reference point for all our stakeholders
BE THE ESG REFERENCE POINT FOR ALL OUR STAKEHOLDERS STRATEGIC GUIDELINES BY STAKEHOLDER 3 rd P i l l a r Sustainability Be the ESG reference point for all our Stakeholders Guidelines KPIs Enriching our SDGs1 value proposition by expanding Clients and FAs our ESG offer and continuous training of our
Slide 20: Our new plan will deliver consistent, profitable and remunerative growth
OUR NEW PLAN WILL DELIVER CONSISTENT, PROFITABLE AND REMUNERATIVE GROWTH TARGETING EVEN STRONGER NET INFLOWS, RECURRING NET PROFIT AND DIVIDENDS Objectives KPIs Targets Consistent growth Cumulated net inflows 2022-2024 €18bn–€22bn Increase of recurring net profit1 10%–15% Profitable growth 2021-2024
Slide 21: Andrea Ragaini
Andrea Ragaini Deputy General Manager, Wealth Management, Markets & Products
Slide 22: Bring the bank even closer to the FA network and clients
BRING THE BANK EVEN CLOSER TO THE FA NETWORK AND CLIENTS STRATEGIC GUIDELINES ON OFFER, SERVICE MODEL AND NETWORK MANAGEMENT APPROACH 1 st P i l l a r Value of service Bring the Bank even closer to the FA network and Clients Guidelines Providing FAs with bespoke products, services and Targeted offer
Slide 23: Total assets breakdown and key growth drivers
TOTAL ASSETS BREAKDOWN AND KEY GROWTH DRIVERS STEADY GROWTH COUPLED WITH EXCELLENT ABILITY TO DELIVER HNW Private Affluent Key Growth Drivers TARGET Total Assets €\bn CLIENTS detailed next Managed solutions Advanced Advisory Traditional life policies 85.7 1. Our core activity Banking products 2.9x I
Slide 24: Advanced advisory (1/2)
ADVANCED ADVISORY (1/2) PROPRIETARY PLATFORM AND ROBO-4-ADVISORY ENGINE TO SUPPORT FAS Assets under Advisory €\bn Strong foundations 7.3 Leveraging our top quality Financial Advisor 3.2x 1. Network Proprietary Platform Holistic picture of Client wealth Risk-based approach as a key advisory driver 2.
Slide 25: Advanced advisory (2/2)
ADVANCED ADVISORY (2/2) NEW COMMERCIAL OPPORTUNITIES TO SERVE DIFFERENT SEGMENTS Growth initiatives for the next level Clients Scale up of fee based approach catering New fee based contract 1. to new segments of FAs and Clients HNW Multi booking center Obtainment of Swiss banking licence Private in
Slide 26: In-house offer (1/2)
IN-HOUSE OFFER (1/2) BG HAS BUILT A STRONG POSITION THANKS TO ITS INNOVATIVE PRODUCTS In-house offer €\bn Strong foundations In-house funds In-house funds Financial wrappers Lux IM Sicav launched in 2018 19.8 2.4x Financial wrappers Offer redesigned with 7 different portfolio management teams 2. 10.
Slide 27: In-house offer (2/2)
IN-HOUSE OFFER (2/2) WIDER RANGE OF TARGETED INVESTMENT SOLUTIONS Growth initiatives for the next level Clients Development of private markets offer HNW Private Markets platform leveraging our partnership with Generali Private and global top tier players Affluent Expansion of Lux IM offer with flags
Slide 28: Insurance (1/2)
INSURANCE (1/2) TRANSITION TOWARDS A NEW APPROACH TO LIFE INSURANCE ACCOMPLISHED Insurance Assets €\bn Strong foundations Insurance wrappers Our insurance know-how and product range are a Traditional life policies 2.8x 27.5 competitive advantage in wealth management 23.1 Generali Group is a key sour
Slide 29: Insurance (2/2)
INSURANCE (2/2) WIDER RANGE OF TARGETED INSURANCE SOLUTIONS Growth initiatives for the next level Clients Introduction of new riders within our BG Stile Libero insurance wrappers in the health and protection riders family protection fields HNW Private Affluent Scale up of our private insurance Lux P
Slide 30: Custody assets and banking (1/2)
CUSTODY ASSETS AND BANKING (1/2) STRONG TRADING PLATFORM, STRUCTURED PRODUCTS AND BANKING Banking products €\bn Strong foundations Current accounts Partnership with BG Saxo to launch BG Saxo SIM AuC trading platform - up and running 25.2 3.2x Private Certificates in open architecture, working with t
Slide 31: Custody assets and banking (2/2)
CUSTODY ASSETS AND BANKING (2/2) ENRICHING OUR OFFER ON AUC AND BANKING SOLUTIONS Growth initiatives for the next level Clients Certificates Expansion into the Secondary Market HNW Private Launch of automatic delivery of Affluent Ro4AD Evolution bespoke trading ideas for individual stocks and bonds
Slide 32: Lending (1/2)
LENDING (1/2) ANCILLARY TO PRIVATE BANKING WITH UPSIDE POTENTIAL Lending €\bn Strong foundations An ancillary proposition to wealth management activities, mainly granted to private individuals 1.8x 2.4 High credit quality, over-collateralized with negligible portfolio risk 1.8 Loan book largely comp
Slide 33: Lending (2/2)
LENDING (2/2) UNLOCKING THE POTENTIAL OF LENDING Growth initiatives for the next level Clients Roll-out of specialist teams to support our Specialist teams FA Network in increasing lending penetration HNW Private Affluent Establishment of partnerships to supply Lending partnerships non-collateralize
Slide 34: Summing up
SUMMING UP PRODUCTS, SERVICES AND PLATFORMS TO SERVE CURRENT CLIENTS AND ATTRACT NEW CLIENTS Advanced Client pyramid 1. Advisory 2. In-house offer 3. Insurance 4. AuC & Banking 5. Lending 2021 Client assets1 Introduction of sophisticated and exclusive solutions €20.8bn HNW Continuous innovation of p
Slide 35: Bring the bank even closer to the FA network and clients
BRING THE BANK EVEN CLOSER TO THE FA NETWORK AND CLIENTS STRATEGIC GUIDELINES ON OFFER, SERVICE MODEL AND NETWORK MANAGEMENT APPROACH 1 st P i l l a r Value of service Bring the Bank even closer to the FA network and Clients Guidelines Providing FAs with bespoke products, services and Targeted offer
Slide 36: Expand our service model to better support FAs and clients
EXPAND OUR SERVICE MODEL TO BETTER SUPPORT FAS AND CLIENTS THREE DEDICATED APPROACHES New service models Target Client and description High potential Clients Enhanced Enhanced “Double touch” service model, powered by dedicated Family Office data-driven platform, to better capture complex-need HNW Cl
Slide 37: Enhanced: a double-touch model for HNW clients
ENHANCED: A «DOUBLE-TOUCH» MODEL FOR HNW CLIENTS COMBINING RICH DATA, ANALYTICS, SERVICE TEAMS AND PARTNERS Expertise brought Family Office Data by the Bank and Partners Driven Platform Family Office Platform for FAs highlighting bespoke Specialized teams working alongside FAs to understand Client c
Slide 38: Guided: a hybrid model to serve affluent clients
GUIDED: A «HYBRID» MODEL TO SERVE AFFLUENT CLIENTS DEDICATED ENGINE TO DELIVER GUIDED INVESTMENT SOLUTIONS BG Personas FAs cockpit Guided solutions Mapping of Client needs Backed by proposal Dedicated products centrally and preferences generating engine managed / automatically BG rebalanced DIGITAL
Slide 39: Self: a digital model for hands-on clients
SELF: A «DIGITAL» MODEL FOR HANDS-ON CLIENTS CURATED ECOSYSTEM OF DIGITAL SERVICES IN SELECTED VERTICALS Digital assets Sustainability INSTANT LENDING Lending1 Trading Opening technology developed for our FAs to end Clients Plug & play of the best fintech solutions from the market 39 NOTES: 1) Lomba
Slide 40: Summing up
SUMMING UP EXPANDING OUR OFFER AND SERVICE MODEL, INCREASING VOLUMES AND MARGINS Targeted offer Multi-service model Enhanced HNW Private Affluent + Self Guided To better serve different Client segments, support new Clients and FAs acquisition and increase volumes and margins 40
Slide 41: Marco Bernardi
Marco Bernardi Deputy General Manager, Commercial Networks, Alternative Channels and Support
Slide 42: Bring the bank even closer to the FA network and clients
BRING THE BANK EVEN CLOSER TO THE FA NETWORK AND CLIENTS STRATEGIC GUIDELINES ON OFFER, SERVICE MODEL AND NETWORK MANAGEMENT APPROACH 1 st P i l l a r Value of service Bring the Bank even closer to the FA network and Clients Guidelines Providing FAs with bespoke products, services and Targeted offer
Slide 43: Banca Generali has posted impressive growth
BANCA GENERALI HAS POSTED IMPRESSIVE GROWTH THE FA NETWORK IS THE KEY Net inflows €\bn Key reasons Existing network New recruits Multi-year FA network improvement 7.7 effort, leading to best-in-class advisor FAs out quality and unique organizational setup 2.3 5.0 Private positioning and brand recogn
Slide 44: BG's growth track-record is built on its key engine: the FA network
BG’S GROWTH TRACK-RECORD IS BUILT ON ITS KEY ENGINE: THE FA NETWORK A SOLID FOUNDATION WHICH HAS BEEN OPTIMIZED, REPOSITIONED AND RE-ORGANIZED Financial Advisors # Phase 1: 2006 IPO Phase 2: 2014-2018 Plan Phase 3: 2019-2021 Plan Optimization: Repositioning: Re-organization: Built an efficient netwo
Slide 45: FA network re-organization has been crucial in fostering productivity
FA NETWORK RE-ORGANIZATION HAS BEEN CRUCIAL IN FOSTERING PRODUCTIVITY THANKS TO MANAGERS ALLOCATED TO HOMOGENEOUS FAMILIES OF FINANCIAL ADVISORS Network structure Client assets €\bn FAs1 # Avg. portfolio2 €\m 2018 2021 2018 2021 2018 2021 WM 15.6 28.0 252 352 73.2 95.8 WEALTH MANAGERS Financial Advi
Slide 46: The vast majority of the network has contributed to results
THE VAST MAJORITY OF THE NETWORK HAS CONTRIBUTED TO RESULTS 87% OF ADVISORS HAVE CONSISTENTLY GENERATED POSITIVE NET INFLOWS OVER 2019-21 Productivity distribution 2019-2021 % of existing network with positive net inflows for N years, 2019-21 87% 13% 59% 87% of advisors are systematically growing th
Slide 47: Today, Banca Generali stands out in the industry
TODAY, BANCA GENERALI STANDS OUT IN THE INDUSTRY BOTH IN TERMS OF POSITIONING AND PRODUCTIVITY Positioning vs industry Productivity vs industry FA networks by total assets per capita: FAs vs Client FA networks by net inflows per capita: FAs vs Clients Banca Generali ranks at the top of FA networks,
Slide 48: Banca Generali aspires to take its growth to the next level
BANCA GENERALI ASPIRES TO TAKE ITS GROWTH TO THE NEXT LEVEL BY WORKING ON BOTH PRODUCTIVITY AND NETWORK EXPANSION 1. 1. Support FAs’ productivity through a new data-driven approach 2. Expand the network base by tapping new and diverse 2. talent pools Detailed next 48
Slide 49: Despite best-in-class metrics, there is room for further improvement
DESPITE BEST-IN-CLASS METRICS, THERE IS ROOM FOR FURTHER IMPROVEMENT THERE IS STILL AMPLE DISPERSION IN THE PERFORMANCE OF INDIVIDUAL FAS 1. Productivity dispersion Root causes Client base characteristics: number of Clients served, Client size, share of Cumulated net inflows 2019-21 / Clients [€\k]
Slide 50: Data & analytics will be key to improve aggregate productivity
DATA & ANALYTICS WILL BE KEY TO IMPROVE AGGREGATE PRODUCTIVITY SCORING OF POTENTIAL WILL HIGHLIGHT GAPS AND DRIVE MANAGEMENT ACTIONS 1. New data architecture Scoring of potential Actions and discovery of key gaps FA- a. Service models & targeted offer PSD2 Client Combining traditional «pull» approac
Slide 51: A scoring of client potential will guide FA and bank actions
A SCORING OF CLIENT POTENTIAL WILL GUIDE FA AND BANK ACTIONS a RESULTING IN TARGETED CLIENT SERVICING 1. Step 1: Client data Step 2: scoring of potential Step 3: shared action plan Shared assessment of development Score of potential and gaps will guide service effort Next level Gap Client for each C
Slide 52: Enabling FAs to re-allocate time towards best opportunities
ENABLING FAS TO RE-ALLOCATE TIME TOWARDS BEST OPPORTUNITIES a HOW WE WILL DELIVER BETTER PRODUCTIVITY AND PROFITABILITY 1. Looking through the eyes of an FA Adding a view of Client potential… … to support FA’s time allocation Portfolio – Key driver of revenue Potential Client base Quality FA-Client
Slide 53: A scoring of FA potential will guide manager and bank action
A SCORING OF FA POTENTIAL WILL GUIDE MANAGER AND BANK ACTION b RESULTING IN BEST TARGETED MANAGEMENT INITIATIVES 1. Step 1: FA data Step 2: scoring of potential Step 3: shared action plan Shared assessment of FA potential and needs Score of (e.g. Client development vs acquisition) will Next level Ga
Slide 54: A scoring of district potential will guide manager and bank action
A SCORING OF FA POTENTIAL WILL GUIDE MANAGER AND BANK ACTION c RESULTING IN BETTER TARGETED LOCAL PRESENCE 1. Step 1: district data Step 2: scoring of potential Step 3: shared action plan Opportunity to combine a decentralized Score of model where local managers are empowered Next level Gap district
Slide 55: Banca Generali aspires to take its growth to the next level
BANCA GENERALI ASPIRES TO TAKE ITS GROWTH TO THE NEXT LEVEL BY WORKING ON BOTH PRODUCTIVITY AND NETWORK EXPANSION 1. 1. Support FAs’ productivity through a new data-driven approach 2. Expand the network base by tapping new and diverse 2. talent pools Detailed next 55
Slide 56: Banca Generali has a successful track record in recruiting
BANCA GENERALI HAS A SUCCESSFUL TRACK RECORD IN RECRUITING USING ITS BRAND AND PROWESS IN ATTRACTING TALENT ACROSS THE INDUSTRY 2. Recruitment # Focus on 2021 recruits FA networks ≤€20m Retail & private banks Portfolio1 ~€49m €20-50m 161 153 on avg. 60% €50-100m transferred to BG ≥€100m 126 123 102
Slide 57: Over the next strategic cycle BG will tap new recruitment pools
OVER THE NEXT STRATEGIC CYCLE BG WILL TAP NEW RECRUITMENT POOLS DUE TO BETTER ABILITY TO ATTRACT AND SUPPORT A WIDER POPULATION OF FAS 2. Recruitment guidelines Private talent + Next generation & diverse talent + International expansion ATTRACT THE BEST ONBOARD THE NEXT EXPAND RECRUITMENT PROFESSION
Slide 58: Switzerland will sustain both recruitment and productivity
SWITZERLAND WILL SUSTAIN BOTH RECRUITMENT AND PRODUCTIVITY BY ADDRESSING CLIENTS MANAGED IN ITALY AND CLIENTS MANAGED IN SWITZERLAND 2. Targeting >€5bn-€7bn Client assets1 (between productivity and recruitment) over a 5-year horizon Client assets of ~€1.2bn between BG Offering re-location to Swiss V
Slide 59: Banca Generali aspires to take its growth to the next level
BANCA GENERALI ASPIRES TO TAKE ITS GROWTH TO THE NEXT LEVEL BY WORKING ON BOTH PRODUCTIVITY AND NETWORK EXPANSION 1. Data-driven approach 1. Service models & targeted offers Managerial initiatives & support Geomarketing & support 2. New talent pools Private talent 2. Next generation & diverse talent
Slide 60: Riccardo Renna
Riccardo Renna COO & Head of Innovation
Slide 61: Growth will be achieved through the evolution of the bank
GROWTH WILL BE ACHIEVED THROUGH THE EVOLUTION OF THE BANK BASED ON THREE KEY PILLARS Pillars Value of service Bring the Bank even closer to the FA network and Clients Innovation Continue to build a data-driven, digital and open bank Sustainability Be the ESG reference point for all our Stakeholders
Slide 62: Continue to build a data-driven, digital and open bank
CONTINUE TO BUILD A DATA-DRIVEN, DIGITAL AND OPEN BANK STRATEGIC GUIDELINES ON DATA, PLATFORMS AND PARTNERSHIPS 2 nd P i l l a r Innovation Continue to build a data-driven, digital and open bank Guidelines Data-driven bank Systematizing data to power our commercial approach, by deploying B2C-like da
Slide 63: Data-driven bank (1/2)
DATA-DRIVEN BANK (1/2) OVER THE PAST YEARS WE HAVE BUILT A SINGLE VIEW OF DATA WITHIN THE ORGANIZATION Data availability and centricity New data management Single view of data within the organization and governance division New data cloud architecture (Amazon Web Services) 63
Slide 64: Data-driven bank (2/2)
DATA-DRIVEN BANK (2/2) THE NEXT STEP WILL BE TO EXPLOIT OUR HIGH-QUALITY DATA TO POWER THE COMMERCIAL PROCESS Client Banker District Score of Score of Score of Client FA district potential potential potential 45% 75% 50% Share Family FA Portfolio size District Σ potential of wallet group performance
Slide 65: Digital platforms (1/2)
DIGITAL PLATFORMS (1/2) OVER THE PAST YEARS WE HAVE LAID THE DIGITAL FOUNDATIONS OF OUR BANK Rich ecosystem of applications to Advisor support the Financial Advisor […] Up to 40% time reduction1 Business process automation to Bank >65% digital onboarding simplify daily operations Up to 70% automatio
Slide 66: Digital platforms (2/2)
DIGITAL PLATFORMS (2/2) WE WILL FURTHER WORK TO FOSTER PERSONALIZATION, SCALABILITY AND DIGITAL EXPERIENCE Family Office Targeted personal platforms as the enablers data driven platform Advisor to new service models, to achieve greater personalization in our commercial process Onboarding Smart opera
Slide 67: Partnerships ecosystem (1/2)
PARTNERSHIPS ECOSYSTEM (1/2) OVER THE PAST YEARS WE HAVE OPENED OUR ARCHITECTURE TO BEST-OF-BREED PARTNERS Front-end Certificates Workflow & Contact Home/Mobile ESG Data Advisory Hub Automation Center Robo 4 Advisor Banking Investments Trading Digital assets Management Back-end Plugging in solutions
Slide 68: Partnerships ecosystem (2/2)
PARTNERSHIPS ECOSYSTEM (2/2) THIS APPROACH ENABLES US TO TACKLE KEY TRENDS ALSO BY ACCESSING PARTNERS’ INNOVATION Trends Partners Industry leaders Sustainability Digital investing BG as an orchestrator, continuous flow of innovation from partners in specialized verticals Key Trends Cybersecurity vs
Slide 69: Carmelo Reale
Carmelo Reale General Counsel & Group Sustainability
Slide 70: Growth will be achieved through the evolution of the bank
GROWTH WILL BE ACHIEVED THROUGH THE EVOLUTION OF THE BANK BASED ON THREE KEY PILLARS Pillars Value of service Bring the Bank even closer to the FA network and Clients Innovation Build a data-driven, digital and open bank Sustainability Be the ESG reference point for all our Stakeholders 70
Slide 71: Be the ESG reference point for all our stakeholders
BE THE ESG REFERENCE POINT FOR ALL OUR STAKEHOLDERS STRATEGIC GUIDELINES BY STAKEHOLDER 3 rd P i l l a r Sustainability Be the ESG reference point for all our Stakeholders Guidelines Enriching our SDGs1 value proposition by expanding our Clients and FAs ESG offer and continuous training of our FAs S
Slide 72: BG approach: sustainability as the life force of Banca Generali
BG APPROACH: SUSTAINABILITY AS THE LIFE FORCE OF BANCA GENERALI KEY ACCOMPLISHMENTS Clients and FAs Shareholders Employees Community & future & Authorities Generations Unique commercial ESG factors assessments Employee training (56h avg. Adoption of Women's approach (SDGs platform embedded in all co
Slide 73: Most recent ESG ratings and dialogue with shareholders
MOST RECENT ESG RATINGS AND DIALOGUE WITH SHAREHOLDERS COMMITMENT TO TRANSPARENCY AND OPEN COMMUNICATION Top 40 9.2 - Negligible Risk EE (strong)1 listed Companies BG ranks 1st out of 449 players Outlook updated from “stable” to MIB ESG Index dedicated to in the asset management sector “positive”, c
Slide 74: Strategic priorities for BG's future sustainability path
STRATEGIC PRIORITIES FOR BG’S FUTURE SUSTAINABILITY PATH REINFORCING BG’S SUSTAINABILITY STRATEGY BASED ON FOUR GUIDELINES Clients and FAs Shareholders Employees Community & future & Authorities Generations >40% 50% By 2025: reduction of carbon Increase ESG disclosure footprint by 25% vs 2019 in % A
Slide 75: Tommaso di Russo
Tommaso di Russo CFO & Head of Strategy
Slide 76: Total client assets (1/2)
TOTAL CLIENT ASSETS (1/2) BG SUCCESSFULLY DELIVERED ABOVE TARGET GROWTH DURING PREVIOUS PLAN Total Client assets €\bn 2018 Investor Day guidance Actuals for 2018-2021 horizon +14.2% CAGR 85.7 Total Client assets grew at 14.2% CAGR +9.4%-10.7% CAGR ~76-80 2.2 7.3 2018-21, above 2.3 1.0 guidance 14.5
Slide 77: Total client assets (2/2)
TOTAL CLIENT ASSETS (2/2) Consistent STRONG NET INFLOWS TOPPING €100BN MILESTONE growth Total Client assets €\bn Focus on net inflows €\bn Guidance Total Client assets up ~7%-9% CAGR ~105-110 by ~7%-9% CAGR - ~2.0 18-22 2021-24, in €105bn- (1.0-1.5) €110bn range 18-22 85.7 6.0-7.5 €18bn-€22bn cumula
Slide 78: Recurring net profit
RECURRING NET PROFIT Profitable TARGETING GROWTH IN EXCESS OF DOUBLE DIGITS growth +9.9% CAGR 176.6 Recurring net profit 153.8 €\m 148.6 133.1 Guidance Targeting 10%-15% 2018 2019 2020 2021 CAGR in recurring net profit in 2021-2024 146.5 thanks to: Variable net profit 123.5 121.1 €\m Revenue growing
Slide 79: Gross fees (1/2)
GROSS FEES (1/2) RECURRING FEES GROWING 7%-10% CAGR ON AMBITIOUS VOLUMES WITH STABLE MARGINS Gross recurring fees €\m Variable fees €\m Management fees Other (banking and entry) fees 10.3% CAGR 942.7 782.4 138.3 703.1 733.6 Guidance 87.3 107.0 68.9 Gross recurring fees up 7%-10% CAGR 2021- 804.3 24,
Slide 80: Gross fees (2/2)
GROSS FEES (2/2) MARGINS SUPPORTED BY ASSET MIX AND PRODUCT LAUNCHES 2018 2021 2024E Assets under Advisory Enrichment of advisory 4.0% 8.5% 8.5%-10.5% offer (fee-based, multi- on Total Client Assets booking, digital portfolios) Focus on expanding managed solutions, with Managed Solutions1 48% 52% 52
Slide 81: Fee expenses
FEE EXPENSES STABLE PAYOUT LEVELS DESPITE STRONGER NET INFLOWS Total Fee Expenses €\m Payout to the network % 47.7% 47.8% 47.4% 46.7% 9.6% CAGR 495.9 55.6 416.1 35.7 36.0 36.0 35.7 376.3 391.2 45.5 103.4 40.9 40.5 0.5 89.1 12.0 11.3 11.4 11.0 83.2 84.5 2018 2019 2020 2021 Guidance Cost of growth One
Slide 82: Net financial income (1/2)
NET FINANCIAL INCOME (1/2) NET INTEREST INCOME EXPECTED TO GROW MODERATELY AT 5%-10% CAGR Net Financial Income1 €\m Net Interest Income Net interest income Trading Income 11.6% CAGR 109.6 112.0 Guidance 84.1 88.2 19.9 28.7 14.2 Net interest income 24.1 growing at 5%-10% 89.6 CAGR 2021-2024 74.0 83.3
Slide 83: Net financial income (2/2)
NET FINANCIAL INCOME (2/2) BANKING BOOK DIVERSIFICATION AND LOMBARD LENDING GROWTH OUR KEY OBJECTIVES Total assets breakdown €\bn Loans to Clients €\bn Targeting €0.6bn lending ≥3.0 expansion over 2024; growth ≥18.5 2.4 driven by enrichment 18.3% CAGR of Lombard product range 16.2 Interest-bearing a
Slide 84: Operating costs
OPERATING COSTS GROWTH CONTAINED TO 5%-6% CAGR, INCLUDING INTERNATIONAL EXPANSION Total operating costs €\m Core op. costs 4.4% CAGR 242.3 242.3 227.2 1.9 5.7 1.9 205.8 212.9 4.7 20.7 20.7 5.1 18.6 17.6 16.8 Guidance Core Operating Core operating costs Costs 21 baseline growth at 5%-6% 204.0 214.1 9
Slide 85: Capital ratios
CAPITAL RATIOS SOLID CAPITAL RATIOS TO BE PRESERVED OVER PLAN HORIZON Total Capital Ratio Leverage Ratio CET1 AT1 5.0% 4.8% 5.1% 19.0% 4.6% 18.4% 17.4% 1.5% 16.1% 1.3% 1.1% 1.5% 17.5% 17.1% 16.3% 14.6% Guidance 2018 2019 2020 2021 2018 2019 2020 2021 Solid capital ratios consistently above Liquidity
Slide 86: Dividends 2019-2021
DIVIDENDS 2019-2021 PAYOUT RATIO CONSISTENTLY ABOVE 70%; €1.95 DPS TO BE DISTRIBUTED FROM 2021 EARNINGS Payout ratio and DPS (accounting view) € DPS (cash view 1) € Pro-forma for the €3.30 cumulative 2019-20 DPS Accounting year 2018 2019-20 2021 70.5% payout on 2021 80.0% 70.5% 70.5% earnings2, resu
Slide 87: Dividend policy 2022-2024
DIVIDEND POLICY 2022-2024 Remunerative STEADILY GROWING DPS, €7.5-€8.5 P.S. CUMULATED OVER 2022-25 (CASH VIEW) growth Deliver steadily growing DPS (cash view) by smoothing Objectives potential earnings volatility connected to variable fees, while increasing flexibility in capital deployment Differen
Slide 88: Recap of Banca Generali's financial ambitions
RECAP OF BANCA GENERALI’S FINANCIAL AMBITIONS CONSISTENT, PROFITABLE AND REMUNERATIVE GROWTH Objectives KPIs Targets Focus on profitable growth Cumulated Gross 7%-10% Consistent growth net inflows €18bn–€22bn recurring fees CAGR 2022-2024 Fees expenses ~53% Growth in payout ratio Profitable recurrin
Slide 89: Gian Maria Mossa
Gian Maria Mossa CEO and General Manager
Slide 90: Closing remarks
CLOSING REMARKS WHY WE ARE CONFIDENT TO DELIVER ON TARGETS Sizeable Acceleration of structural industry trends, with opportunity growing market share for FA networks Sound strategy Strategy resting on hard-to-match foundations: and foundations quality of FA network + technology Tried and tested mana