Anima Holding S.p.a. · MIL:ANIM
Anima — Investor Presentation (January 2024)
44 slides from Anima's investor presentation, January 2024
Slide 1: Investor Presentation January 2024
Investor Presentation January 2024 Includes 9M 2023 results
Slide 2: Index
Index 9M 2023 Highlights 3 9M 2023 Business 6 9M 2023 Financials 9 M&A 13 Business model & Value proposition 17 Sustainability 23 Appendix 33 2
Slide 3: 9M 2023 Highlights
9M 2023 Highlights 184 €bn AuM +0.3 €bn Net New Money* +3.1% Mutual funds’ WAP +5% vs. 9M22 vs. +0.8€bn in 9M22 vs. -11.6% in 9M22 ➢ Total AuM up €8.5bn yoy and €6.8bn year to date ➢ Net flows strongly characterised by clients’ repositioning toward new solutions more geared to fixed income in line w
Slide 4: Key messages from presentation (03.11.2023)
9M 2023 Key messages from presentation (03.11.2023) ➢ With the Italian industry negative by €32.5 billion at the end of September 2023, ANIMA managed to record €0.3 million positive flows into managed products thanks to its diversified distribution network, breadth of product offer and a positive en
Slide 5: Options for employing cash
9M 2023 Options for employing cash BUYBACK DIVIDENDS ➢ 30 €mn program – announced Aug. 2, ➢ Generous policy (~50% of distributable income) completed Oct. 31 ➢ Resulting dividend yield consistently above 5% ➢ 3.9% shares now in portfolio ➢ Positive effect on stock liquidity ➢ Flexibility regarding de
Slide 6: Assets by segment as of 30.09.2023
Business Assets by segment as of 30.09.2023 Retail Institutional 50% AuM = €92.5bn 50% AuM = €91.6bn Fund users AIFs Wrap* 2.3% 4.5% 18.1% Pension Funds BAMI 6.3% 29.7% other Class I 11.5% Advisory 7.8% Insurance - U/L 8.1% PST funds and U/L BMPS 11.9% 15.2% PST Class I CA Italy other 75.4% 2.8% 0.4
Slide 7: Mutual funds' investment performance
Business Mutual funds’ investment performance 2023 YTD WAP Funds’ breakdown by category as of 30.09.2023 ANIMA Italian industry % 9.0 Year-End Update 8.85% 18.7% 8.38% 8.0 Equity 32.8% 7.0 23.9% 6.0 Flexible 16.8% 5.0 18.1% 4.0 Balanced 12.1% 3.0 2.0 Bond 34.4% 34.9% 1.0 0.0 Cash Oct Mar May Apr Nov
Slide 8: Net flows breakdown by quarter
Business Net flows breakdown by quarter NNM into mutual funds by category data in €bn Bond 0.6 Balanced ➢ Repositioning towards fixed income Flexible accelerate in Q2 and continue in Q3 Equity 1.5 ➢ Negative NNM for flexible funds largely 0.2 due to a decreasing wrap trend due to a 0.5 lower or zero
Slide 9: Consolidated P&L
Financials Consolidated P&L* €m 9M23 9M23 9M22 9M23 9M22 2022 CONS ANIM ANIM bps/avg AuM CONS ANIM ANIM Net revenues 245.397 241.392 248.940 Total margin 15.4 15.4 15.3 Performance fees 3.378 3.378 8.027 Margin excl. Class I 25.3 25.7 25.5 Total revenues 248.775 244.770 256.967 ➢ Margin trend remain
Slide 10: 9M Net Income bridge 2022-2023
Financials 9M Net Income bridge 2022-2023 9M 2023 VS 9M 2022 (€ mln) – pro-forma data including Castello SGR for the whole year 97.0 0.8 +9% 2.1 4.0 88.9 10.0 • Tax Rate 9M 22 > 35.6% • Tax Rate 9M 23 > 32.7% -17.8 8.9 NI 9M22 EBITDA Own invested Yield on liquidity Derivative Tax Other NI 9M23 portf
Slide 11: Consolidated Net Financial Position
Financials Consolidated Net Financial Position €m 30.09.23 31.12.22 30.09.22 Bank loan - (82.0) (112.0) Bond 2019-26 1.75% (283.3) (283.1) (283.1) Bond 2021-28 1.50% (298.8) (298.6) (298.6) Accrued interest expense (6.7) (4.1) (7.2) Dividends payable (0.0) (0.0) (0.7) Total cash 650.8 610.4 mainly i
Slide 12: Net financial income quarterly trend
Financials Net financial income quarterly trend ➢ Strong improvement in net interest income in 2023 due to active liquidity management, including partial (2H22) and full (1H23) bank debt repayment with consequent capital gain on hedging derivative NET FINANCIAL INCOME (CUMULATED YtD) Data in €m 4.2
Slide 13: Castello SGR Consolidated since July 17, 2023
M&A Castello SGR Consolidated since July 17, 2023 Alternative ➢ Castello SGR, founded in 2007, is an independent AM company active in Top 10 the promotion, institution and management of AIF Italian RE AM Asset ➢ ~ €4bn AuM (30/09/2023). Top 10 Italian Real Estate AM ~€4bn AuM Manager ➢ 73 active fun
Slide 14: Castello SGR – a steadily growing business
14 M&A Castello SGR – a steadily growing business ➢ Castello SGR holds a 4% RE AM market share in Italy, consistently ranking among the top 10 companies; ➢ In an industry where the top 10 companies control 82% of the market share, Castello SGR is well qualified to make strategic moves in the Italian
Slide 15: Castello SGR – Portfolio breakdown
M&A Castello SGR – Portfolio breakdown Breakdown by Strategy – AuM (*) Breakdown by Investors – AuM (*) 9% 8% Core / Core + International Institutional 4% 3% Value Add Italian Institutional 7% 39% Restructuring Other Hospitality & Leisure HNWI Energy 34% 56% 20% Credit Resi & Development 9% 12% Asse
Slide 16: Kairos Partners SGR
Signed Nov.16, 2023 M&A Kairos Partners SGR Closing expected in Q2 2024 • Founded in 1999, one of Italy’s most renowned AM brands Private Bankers • Active in open-end investment companies, • Kairos employees ca. 20 private bankers mutual funds, AIFs, and institutional mandates managing altogether ~
Slide 17: The largest independent AM in Italy
Model The largest independent AM in Italy Top 20 AMs in Italy– AuM as of September 2023 (€bn) 476 431 Individual Accounts Open-End Funds 211 180 143 101 94 62 50 46 45 42 41 38 37 28 27 25 25 18 17 Mediolanum Blackrock Fidelity Intesa SP Generali Axa Amundi Morgan Stanley Invesco JP Morgan BNP Parib
Slide 18: An increasingly diversified business
Model An increasingly diversified business INSURANCE STRATEGIC (UNIT LINKED) FUND USERS PARTNERS SUBADVISORY PENSION FUNDS OTHER WRAP SOLUTIONS BANKS OTHER INSURANCE FINANCIAL (CLASS I) ADVISORS B2C B2B 18
Slide 19: Our value proposition in the retail segment
Model Our value proposition in the retail segment PRODUCT INNOVATION: dedicated product engineering team with highly developed, country-specific knowledge INVESTMENT PERFORMANCE: long track record and outstanding performance within a well comprehensive product range SERVICES TO DISTRIBUTORS: ongoing
Slide 20: Focus on ANIMA Partnerships
Model Focus on ANIMA Partnerships STRATEGIC OTHER Expiration of the contract 2027 2037 2030 2027 2033 Exclusive preferential access ✓ ✓ ✓ Access to the network, training, joint steering committee, higher visibility in the branches, dedicated product development... No way-out until expiration ✓ ✓
Slide 21: Coverage enhanced by commercial partnerships
Model Coverage enhanced by commercial partnerships Strategic Partners’ network Strategic and Commercial Partners’ network 1% 23% 7% 17% 9% 9% 22% 18% 16% 24% 12% 12% 16% 11% 28% 12% 6% + 20% 14% 29% 24% 7% 12% 12% 11% 13% 17% 17% 11% 18% 17% 18% 2% Total: 13% 5% Total: 13% 2,896 3,709 13% 12% Mkt sh
Slide 22: Poste network and the open channel
Model Poste network and the open channel Post offices and branches Open Channel PREMIUM PARTNERS 325 335 72 1,890 1,040 1,397 899 431 911 414 264 OTHER BANKS / FAs 477 796 169 960 476 Total: 182 445 12,895 623 # post offices and branches >1000 787 700-1000 400-700 200-400 <200 Long-term commercial a
Slide 23: Responsible Investment & Sustainability Strategy
Sustainability Strategy In July 2022, the Board of Directors of Anima Holding approved the 2022-2026 Sustainability Plan of the ANIMA Group (“Plan”), which intends to define and represent the strategic guidelines in the Environmental, Social and Governance Sustainability (ESG) areas and the objectiv
Slide 24: ANIMA Holding sustainability path
Sustainability ANIMA Holding sustainability path 04 SUSTAINABILITY 03 STRATEGY SUSTAINABILITY 02 REPORTING Definition of medium- Reporting of non- long term sustainability MANAGEMENT objectives and a periodic financial information in 01 POLICIES monitoring plan to track order to provide Structured p
Slide 25: Policies and management systems
Sustainability Policies and management systems Sustainability ISO 14001 Sustainability Policy (Environment) Principles of conduct in ISO 37001 Whistleblowing Policy Anti-corruption Policy tax matters (Anti- Governance Corporate corruption) Policy on the Diversity Money laundering risk Engagement Pol
Slide 26: Sustainability Milestones
Sustainability Milestones UN PRI ESG Policy Controls, Risks & Sustainability Committee CDP Anima SGR becomes Anima Alternative Assignment of Sustainability Governance Renewal of membership in a signatory of the Principles for approves and to the Controls and Risks Committee of the CDP Responsible In
Slide 27: ANIMA Holding highlights
Sustainability ANIMA Holding highlights Environmental Social Governance • Publishing of the third Group • 100% renewable certified • 57% of new hires under the age Sustainability Report in compliance electricity purchased for all the with the GRI Sustainability Reporting of 30 Group’s offices Standa
Slide 28: ESG product offering
Sustainability ESG product offering ESG policy by product range Art.8 Art.8 Art.9 fund Art.6 funds Art.8 funds ESaloGo Comunitam Net Zero Commitment to Principles for Responsible Investing 🍂 🍂 🍂 🍂 🍂 ▪ In 2018 Anima SGR became a signatory of the United Nations Responsible Investment Principles…
Slide 29: ESG reporting
Sustainability ESG reporting Reporting scope: ANIMA Group Reporting scope: Anima SGR’s approach to responsible investment Sustainability Report ➢ Voluntary reporting (inspired by ESG Report Legislative Decree 254/2016 and ➢ Describes Anima SGR's approach to Non- Financial Reporting Directive respons
Slide 30: Overview of ratings (1/2)
Sustainability Overview of ratings (1/2) Provider Rating and scale Last update Low risk 11.5 (-1.0) NEGL. LOW MED. HIGH SEVERE December 2023 0-10 10-20 20-30 30-40 40-50 CCC B BB BBB A AA AAA September 2023 LAGGARD AVERAGE LEADER September 2023 Score 2022 S&P Global ESG Score 55 / 100 Governance & E
Slide 31: Overview of ratings (2/2)
Sustainability Overview of ratings (2/2) Provider Rating and scale Last update ESG Combined Score: A- • ESG Score: A- (Environmental Pillar B; Resource Use A+; Emissions A+; Environmental Innovation Score C) • Social Pillar Score: A (Workforce A+; Human Rights A+; Community A+; Product November 2023
Slide 32: ESG ratings trend
Sustainability ESG ratings trend Trend vs. Rating scale 2020 2021 2022 2023 prior rating F (lowest level) – EE- EE- EE EE EEE (full) D- (ESG Laggards) – C B+ A- A- A+ (ESG Leaders) 40+ (severe risk) – 35,0 16,5 12,5 11,5 0 (negligible risk) N/A 36 55 0-100 27 47 47 53 0-100 D- (poor performance) – A
Slide 33: Shareholders' structure
Appendix Shareholders’ structure Float GAMMA srl Caltagirone Group treasury (Other) shares 21.7% 11.6% 9.5% 3.4% 3.9% 50.0% ANIMA Governance: Sharecount Total #: 329,191,756 Holding 7 independent Directors (ANIM.IM) out of 11 100% 100% 80% as of 31st October 2023 33
Slide 34: Growth timeline
Appendix Growth timeline November 2017: Acquisition of December 2011: Merger Aletti Gestielle between Anima SGR and February 2018: Transfer of mandates and new strategic Prima SGR for the management of assets Partnership November 2014: underlying insurance products from with Banco BPM July 2023: Str
Slide 35: Solid cash generation and consistent delivery
Appendix Solid cash generation and consistent delivery Effective operating leverage kept EBITDA margin constantly well above 70% €m Net fees Performance fees EBITDA Fixed fees Perf.fees EBITDA % 400 389 100% 90% 334 350 326 310 80% 304 302 299 300 278 70% 255 234 240 233 233 250 60% 221 196 200 191
Slide 36: Performance fees
Appendix Performance fees • AuM eligible for performance fees approximately 58% of total AuM1 in mutual funds • Two main calculation methodologies: • HWM (no calendar year reset), monthly cash-in • Yearly comparison against the relevant benchmark (total return in case of equity index), year-end cash
Slide 37: Amortisation of intangibles
Appendix Amortisation of intangibles • The acquisition of Aletti Gestielle SGR generated an intangible of €380.3m and starting from 2018 a €25.4m depreciation (15y amortization) • The acquisition of the BAMI insurance mandates in June 2018 for a total consideration of €138.6m should also be entirely
Slide 38: LTIPs expense accounting
Appendix LTIPs expense accounting • 2021-2023 LTIP foresees three 3ys rolling vesting periods, granting 1/3 of the options each year starting from April 2024. Maximum amount of shares granted is 10,506,120 (or 2.85% of the current issued share capital). Current expense is based on its 85% granting t
Slide 39: Mutual funds breakdown by category
Appendix Mutual funds breakdown by category 13.3% 9.9% 11.4% 12.5% 16.4% 13.7% 13.7% 14.2% 15.4% 16.1% 19.6% 18.7% Equity 21.6% 10.9% 27.5% 27.8% 29.1% 18.2% 25.2% 30.1% 38.8% 35.7% 38.7% 32.2% 30.7% 23.9% Flexible 7.0% 6.4% 5.4% 8.1% 13.6% 14.2% 18.1% 15.6% Balanced 12.2% 13.1% 14.2% 17.4% 19.0% 50
Slide 40: P&L adjustments to net income
Appendix P&L adjustments to net income €m 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M23 Net Income 84.9 126.9 101.2 111.3 122.1 145.8 155.4 238.6 120.8 96,4 1 Amortization of Intangibles 18.3 16.4 15.7 15.7 44.8 51.1 50.2 41.2 41.2 29.9 2 Amort. of Cap. Costs on Financing 8.6 0.6 0.6 1.6 1.2 5.6
Slide 41: No impact on debt structure from rates hike
Appendix No impact on debt structure from rates hike Maturity wall1 (€m) Debt by Interest rate type Bond 2026 Bond 2028 300 200 100 0 2023 2024 2025 2026 2027 2028 100% Fixed 1.75% 23Oct2026 ISSUER ISIN CODE TYPE RANK Anima Holding spa XS2069040389 Notes Senior Unsecured RATE CURRENCY AMOUNT ISSUED
Slide 42: Italian AM industry growth trend
Appendix Italian AM industry growth trend 141.7 133.8 Total NNM, €bn 97.5 91.7 73.5 65.2 55.6 19.8 9.9 7.8 -11.8 o/w: Mutual funds 92.4 94.7 78.1 64.8 48.7 35.2 25.2 15.5 2.7 5.2 6.9 66.6 o/w: Individual Mandates 46.2 41.3 26.9 16.5 20.5 19.4 4.7 4.3 -14.5 -17.4 2012 2013 2014 2015 2016 2017 2018 20
Slide 43: Key management
Appendix Key management Maria Patrizia Grieco (2023) Chairman Formerly Chairman of Banca Monte dei Paschi di Siena (2020-2023) and ENEL (2014-2020) Alessandro Melzi d’Eril (2011) Pierluigi Giverso (2009) CEO Formerly investment director Joint GM with Clessidra (2004-2011) Formerly manager with McKin
Slide 44: Disclaimer and safe harbor statements
Investor Relations Digital link: Luca Mirabelli see and download Tel. +39.02.63536.226 our presentation Luca.mirabelli@animaholding.it Anima Holding spa ANIMA and its suppliers print this presentation, when Corso Garibaldi, 99 needed, on FSC 100% I – 20121 Milano www.animaholding.it certified paper