Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2008 Earnings Presentation
23 slides from Banca Generali's earnings presentation, May 6, 2008
Slide 1: 2008 First Quarter Results and Banca del Gottardo Italia Acquisition
2008 First Quarter Results and Banca del Gottardo Italia Acquisition Giorgio Girelli, CEO Milan, May 06, 2008
Slide 2: 1Q08 Results key messages in a nutshell
Today’s Agenda 1Q-08 Results 1Q08 Results key messages in a nutshell ¾ We are delivering in line with our strategy to cope with a tough 2008: Net Inflows were positive by €171 million in 1Q08 and gross inflows in new strategic products is proceeding ahead of targets (€760 million in life products, €
Slide 3: Delivering on 1Q08 Net Inflows target even with unfavourable market conditions
1Q-08 Results Delivering on 1Q08 Net Inflows target even with unfavourable market conditions 1Q08 1Q08 Net Net Inflows Inflows Ranking Ranking by by Groups Groups (€ m) 36% 36% 34% 34% 555 530 14% 14% 13% 13% 223 11% 11% 10% 10% 199 171 159 7% 7% 6% 6% 107 2% 2% 73 2% 2% 1% 1% 1% 1% 33 F&F Investito
Slide 4: 1Q08 Results: Key Remarks
1Q-08 Results 1Q08 Results: Key Remarks Unfavourable Unfavourable ¾ The ¾ The company company operated operated inin one one of of the the worst worst business business environment environment ofof the the last last decades, decades, due due toto aa combination combination ofof poor poor equity equi
Slide 5: Consolidated Profit and Loss 1Q08 Results: Key Comments
1Q-08 Results Consolidated Profit and Loss 1Q08 Results: Key Comments (€ m) 1Q 07 1Q 08 % Chg 1Q 08 (Adj) % Chg Net Interest Income 9.8 14.0 (1) 42.9% 14.0 42.9% (1) Strong increase in Net Interest Income Commission income 74.4 66.6 -10.6% 66.6 -10.6% Commission expense -34.2 -29.5 -13.8% -29.5 -13.
Slide 6: 1Q08 up 80%, when adjusting for the Impact of Corporate Credit Spreads Movement
1Q-08 Results 1Q08 up 80%, when adjusting for the Impact of Corporate Credit Spreads Movement Itraxx Itraxx Europe Europe Senior Senior Financials Financials Net Net Profit Profit (€ m) 160 +84% March 17, 2008 152 bps 140 120 March 31, 2007 8.6 91.33 bps 100 80 December 31, 2007 4.7 40 bps July 16,
Slide 7: Investment Portfolio – Unrealised Capital Losses mostly coming from Corporate bonds on European banks
1Q-08 Results Investment Portfolio – Unrealised Capital Losses mostly coming from Corporate bonds on European banks Investment Investment Portfolio Portfolio HFT HFT Unrealised Unrealised Losses Losses Breakdown Breakdown 1% Equities (0.04) 8% Credits (0.3) 20% Equities (2.7) 24% Interbanking (0.9)
Slide 8: Gross Commissions and Banking income holding-up well
1Q-08 Results Gross Commissions and Banking income holding-up well Breakdown Breakdown of of Net Net Banking Banking Income Income Breakdown Breakdown of of Gross Gross Commissions Commissions (€ m) +2% (€ m) 52.8 51.6 74.4 -11% 66.6 39.2 27% 2% 19% 23% 14% 36% 70% 78% 68% 71% 94% 77% 84% 9% 13% 3%
Slide 9: Operating costs - Maintaining a severe discipline on cost control
1Q-08 Results Operating costs - Maintaining a severe discipline on cost control Operating Operating Costs Costs Breakdown Breakdown Operating Operating Costs/AUM Costs/AUM (*) (*) (€ m) 30.8 -0.7% 30.6 0.15% - 0.01 p.p. 46% - 0.01 p.p. 46% 0.14% 0.13% 68% 54% 21.5 24.0 23.7 54% 5% 1Q07 1Q08 1Q06 (Lf
Slide 10: Delivering our plan “Strategy to cope with a tough 2008”
2008 Main Guidelines Delivering our plan “Strategy to cope with a tough 2008” 1) 1) Gathering Gathering New New Assets Assets Timetable March March Net Net Inflows Inflows 84 fully fully in in line line with with 35 52 targets targets Jan 08 Mar 08 Dec 08 .. Monthly New Inflows (€ m) Expected New In
Slide 11: Recruiting: good development in Private Banking, a bit late on FAs
2008 Main Guidelines Recruiting: good development in Private Banking, a bit late on FAs Networks N. 2008 new Recruiting AUM Target 80 5 RM* 115 7 Private Banker 75 5 Financial Advisor 270 Total BG Group 17 N. of FAs AUM to be transferred AUM already transferred … Expected AUM * Relationship Manager
Slide 12: Asset Transformation is working as planned
2008 Main Guidelines Asset Transformation is working as planned Starting portfolio (31/12/07) New Products and Gross Inflows at the end of Note: referred to BG and BSI, only April 2008 Managed Managed Assets Assets 6.1 € bn since rch 1° Ma 2008 Retail Retail Funds Funds and and Sicav Sicav 810 4.1 €
Slide 13: Banca del Gottardo Italia Acquisition agenda
Today’s Agenda 1Q-08 Results Banca del Gottardo Italia Acquisition ¾ Focus on Private Banking - A strategic Business to Banca Generali ¾ Key Highlights of Banca del Gottardo Italia ¾ Strategic Rationale of the Deal – Creating one of the largest players in PB in Italy ¾ Industrial Structure of the De
Slide 14: Focus on Private Banking: A strategic business to Banca Generali
Banca del Gottardo Italia Acquisition Focus on Private Banking: A strategic business to Banca Generali ¾ ¾ Private Private banking, banking, aa core core business business for for Banca Banca Generali Generali ¾ AUM ¾ AUM at at €7.0 €7.0 bn bn in in 2007YE 2007YE (52% (52% managed managed products)
Slide 15: Key Highlights on Banca del Gottardo Italia
Banca del Gottardo Italia Acquisition Key Highlights on Banca del Gottardo Italia ¾ Banca del Gottardo Italia SpA (BdG) is the Italy-based operation of the Swiss group Banca del Gottardo AG, bought in October 2007 by BSI AG ¾ BdG Italia start-up in 2002 ¾ 2007YE AUM at €1,961 million with a 2002/07
Slide 16: Strategic Rationale of the Deal – Creating one of the largest players in PB in Italy
Banca del Gottardo Italia Acquisition Strategic Rationale of the Deal – Creating one of the largest player in PB in Italy 1 Strengthening Strengthening our our presence presence in in the the private private banking banking segment segment 2 Creating Creating one one of of the the largest largest pl
Slide 17: Industrial Structure of the Deal – Creating a new single entity from January 1, 2009
Banca del Gottardo Italia Acquisition Industrial Structure of the Deal – Creating a new single entity from January 1, 2009 ¾ BSI Italia acquires 100% of BdG from Banca del Gottardo SA ¾ Authorisation from the Bank of Italy likely to be issued within September 2008 ¾ Creating a new single entity 100%
Slide 18: Estimated Synergies – Exploiting BG proven expertise in Post Merger Integration
Banca del Gottardo Italia Acquisition Estimated Synergies – Exploiting BG proven expertise in Post Merger Integration Banca del Gottardo 2006 2007 2009 E Profit and Loss Net Interest Income 9.3 9.4 ¾ Revenue ¾ Revenue Synergies Synergies conservatively conservatively 7.6 Net Commission 6.9 8.1 taken
Slide 19: Key Terms and Structure of the Deal – A good opportunity at the right price
Banca del Gottardo Italia Acquisition Key Terms and Structure of the Deal – A good opportunity at the right price ¾ The ¾ The price price paid paid is is €62 €62 million, million, out out of of which which €23.9 €23.9 million million equity equity and and €38.1 €38.1 million million Goodwill Goodwil
Slide 20: Estimated Impact on Banca Generali 2009 Targets
Banca del Gottardo Italia Acquisition Estimated Impact on Banca Generali 2009 Targets 2009 2009 Net Net Profit Profit Target Target (€ m) 74-84 70-80 +€4.0 m Pre BdG Acquisition Post BdG Acquisition The The deal deal is is aa good good opportunity opportunity for for Banca Banca Generali, Generali,
Slide 21: What’s Next
What’s Next Wednesday Wednesday July July 30, 30, 2008: 2008: 10:00 10:00 AM AM CET CET Review Review of of 2008 2008 mid-year mid-year accounts accounts 3:00 3:00 PM PM CET CET Conference Conference Call Call •• Tuesday Tuesday October October 28, 28, 2008: 2008: 10:00 10:00 AM AM CET CET Review Re
Slide 22: Investor Relations Team
Investor Relations Team Giuliana Giuliana Pagliari Pagliari Investor Investor Relations Relations Officer Officer Tel Tel +39 +39 02 02 6076 6076 5548 5548 Federico Federico Mangiagalli Mangiagalli Tel Tel +39 +39 02 02 6076 6076 5545 5545 Fax Fax +39 +39 02 02 6682 6682 854 854 E-mail E-mail invest
Slide 23: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Giancarlo Fancel) declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law of Finance, that the accounting information contained in this press release corresponds to the document results, books and