Banca Mediolanum SpA · MIL:BMED

Banca Mediolanum SpA — FY1999 Earnings Presentation

54 slides from Banca Mediolanum SpA's earnings presentation, 2000

  1. Slide 1: Full-Year Consolidated Results

    naff MEDIOLANUM dal \ a Full-Year Cobsbiiaied RoaItS “

  2. Slide 2: 8359891) Sh 1935 SOUT She P|

    85 86 87 88 8359891) 191 323 33 Sh 1935 SOUT She 99 P|

  3. Slide 3: Total assets under management

    1998 Change SMutual Funds & ye sig =Managed Accounts , 9504377 See 4 623)/omm . Smee away 4 Of Life Reserves ; 4163") Seaeit 28 22)/0F Bank Assets Pension Funds « ) ¢. iy CONSOUIDATEDIIOTAT B 12,966.8| \ 9473.4 +36.9% \.\\ Euro millions

  4. Slide 4: Gross Inflows into Mutual Funds and Managed Accounts

    Gross Inflows into MutuallFunds a - = & Managed Accounts Bank Deposits = i 05% ye

  5. Slide 5: Total Revenues and Net Profit

    : “Total Revenues Profit before Tax & E.l. Profit before Tax NeUProtit Euro millions 1999 1,431.0 130.2 132.4 88.4 Z Change 94 ne 4392" 19 iG aa 1231 75.5 \ 5107/9 +769. +17.1%

  6. Slide 6: 95°96" 97" 98" "99"

    94 95°96" 97" 98" "99"

  7. Slide 7: Euro millions™ 95° 796"

    , <A Euro millions™ 94 95° 796" 971

  8. Slide 8: 95-796" 97m

    94 95-796" 97m

  9. Slide 9: Profit before tax by segment

    - Proj . iE Life Insurance 7 168 760 Mutual Funds 2 4918" aE aatgy, Bank 07-1071 Other,Operations 5.6 3.5 +60:0%" PROEIMBEEORE TAXTE SS 130.2 119.4 +9.0% paews Euro millions

  10. Slide 10: Distribution Network

    I=: Mutualieunds : = 2 - Life Insurance ae Distribution|Network / pale

  11. Slide 11: Assets Developments by Location

    ssets’Developmentsb Wocation

  12. Slide 12: Life Reserves

    | Le “ > ~— Related Reserves” =— Completa —

  13. Slide 13: Bank breakeven reached; bank customers

    Secreakeven reached a Bankic Customersjas) of Dec 31 =

  14. Slide 14: Financial Executives

    Financial Executives ===—as of Decr3'l

  15. Slide 15: Revenues/Costs

    > Revenues/Costs 4 a atom

  16. Slide 16: Revenues by source

    “y | “ 1999 1998 Thange PGross Premiums Written 1,229.1 esr _.30 <= — i a Eee : ub : Mutual Funds WS é Commissions Lae 1 32.9)/0m Bank Revenues 129° +159.7% Othercommissions & OtherRevenues ] ? » 9.5 -12.6% — TOTAL \ 999.4 +43.2% Vane Euro millions

  17. Slide 17: Life insurance premiums and pension plans

    . T-)Pension:Plans . Investment: Policies” a O ann PensioniFunds Recurring Policies ° Trait. & Group Policies ¢ Pension Plans ~~ ¢ Investment Policies BSingle Premium ‘Policiest) ital ti | Pension Plansjin force Hnivestment Policies\in force! TOTALS Euro millions 41088 38.3% se 73335 an = 65.8 "16°7

  18. Slide 18: Mutual fund gross inflows

    Et uro millions 1933 1998 Sthange = - Equity Fans — 392.0 3549) 6) =288)y/0 ¢Bond Funds” 255.1 9504:25 7494 ¢ Monetary Funds 386.4 3340/8 S131 > ¢ Equity Funds 1,024.8 32.2 = e Protected Funds 50.2 77837 =93°67% iBond,& Monetary Funds 352.6 32.7 +9783 YY . TOTANGROSSUNELOWSNNE 2,700.5 | 2,290.8 +17.

  19. Slide 19: Mutual fund fees

    Pentry Fees — , _ Management Fees Sperformance Fees Po TOTAL Euro millions W/ 2 ee. : 1999 1998 Thange 67.8 \ a0 mal 476 86.1 636. st OFA /0 Dae atato Ha ee 35.6 18.0 — +9728% 189.5 143.0 +32.5% Lali

  20. Slide 20: Fee breakdown by location

    pas ee yBreakdown IBY location = Performance fees. Entry Fees . ae | aye MgmtiFees) Entry Fees Performance %, 12.4% Fees 7.1% pare Italy, faced Funds (4919°2) al leds basil Mgmt Fees

  21. Slide 21: Bank interests and banking margins

    1999 1998 Change = Bank Interests: = Banking Margins 17 33 730 a »~ , , 35. 12.9 +159.7% welsh Euro millions

  22. Slide 22: Costs: claims, acquisition and general expenses

    1998" aChange a . Claims, Benefits paid, Changes ir in Reserves 1,143.1 AcquisitionCosts © =~ ‘151.9 BGeAlExpenses 934 83.8 *11.5%" Euro millions

  23. Slide 23: Claims and maturities

    ° Claims’& Maturities e “Pull in our Nets” ¢ Surrenders # j ‘ Jp TOTAL Euro millions 1,143.1 at r * ” ag aki 822.1 Vay ill Change +39.0%

  24. Slide 24: jssfis i 98)

    3 43 95 jssfis i 98) 33 *Not including Deprecia tion

  25. Slide 25: Financial Advisors network

    =? Non-licensed— = Financial Advisors ° Licensed = Financial Advisors Banca Mediolanum* Rartnerime y, BB OTATINET|WORK 1,205 2,513 Nh 3,718 a3; fe “104 ners 418 << +4649, 3,670 +20.4% \AA

  26. Slide 26: Embedded value

    mpe _~ > : AN Value\of > in*force busines Shareholders’ equity 94 95 “SG NS7in98 99 \.\ \ oui

  27. Slide 27: Embedded Value Assumptions

  28. Slide 28: Change over the year; dividend paid

    Change over the year Dividend paid cTAOD URW aNING Ll Euro millions

  29. Slide 29: Embedded value change 1999 vs 1998

    al A a lal Piss9 ~ 1998 ° Expecteiincreasel in EV pe Change in'assumptions/discount rate e Change in income tax ¢Transformation/other ¢ New business life Se)New, business funds allo ) J t— Euro millions

  30. Slide 30: Dividends

  31. Slide 31: Mutual fund inflows

    31938 Change > Equity Fangs ee 171. hi 678) 529149) ° Band Funds =e ’ 1621515 S404 ¢ Monetary Funds ; mai) ‘Sie 13°29 gS e Equity Funds ,296. 3416 Protected Funds 879.58 acy s.Bond & Monetary Funds : 328.5 +178:470) CONSOPIDATED TONAL 5379. 5043.7 +46.3% Mali Euro millions

  32. Slide 32: Life reserves

    ll 1998 Change » pgs amne . eae 2s ——- ELife-Reserves am Traditional Annuities ¢ Index-linked ° Unit-linked Life,Reserves injown)Mutual Funds - - 428.6 +287°27/0 \\\ Euro millions

  33. Slide 33: Bank assets and deposits

    vt ae P: — Site ae “a +, =o . % Cash ee under Deposits Securities = i under Deposits : : ae 2641570 | Repurchase ; sAgreements i 22.2 = +132/4% 107 | 694.6 +167.1% \ald Euro millions

  34. Slide 34: Mediolanum

    onal MEDIOLANUM

  35. Slide 35: Truly multichannel Bank

    ° Truly multichannel Bank | ° Much wider Appeal than a pures= Internet Bank ¢ Important Synergies among Channels e Very high ality a %

  36. Slide 36: Internet, telephone and teletext channels

    Internet World-class Telephone parading Teletextua—: \ me “facilities 50,0000 a ~ / phone calls/day "\ capability nit

  37. Slide 37: Banca Mediolanum's Strategy

    Banca Mediolanumis: Strategy, ] ae * Som rovidelse service » = when and where the.clients want.it and through the channel they choose [ SameypassW a” channel)) Sal

  38. Slide 38: Banca Mediolanum's Model

  39. Slide 39: Pricing and marketing actions

    ms ——— ° «Astute pricing.and marketing, actions to direct customers to the best channel slay effort to Maximises ea cross‘selling via financial ¢ bdvisors i ae

  40. Slide 40: High Quality of Service

    High Quality of. Service —_— © In the Offer ¢ In the Pricing ° Inthe Brant

  41. Slide 41: McKinsey Research: European Bank Customers

    McKinsey Research European Bank Customers 19/0 39/ 90% Strongipreference ] forbranches/advisors

  42. Slide 42: Call Center

    Gall Center as of April 2, 2000 Banking | » 245 Stock Trading =~ | 64 Internet Customer Care 7» 32 Outbound Py} 38

  43. Slide 43: Call Center

    Gall Center Average calls/day: March 1-15; 2000 Inbound Calls =to Banking'operators he to Stock Trading Operators 7 to Voice Response Unit/leletext

  44. Slide 44: Website

    WWW. BEC AEST = = = . i J ; » Immediate to navigate | e Simple to personalise Sus ” ¢ Designed for'an easy'scale-up,

  45. Slide 45: Website Launch Results

    Www bancamediolanum. It Website Launch Results. A pril V6 ee 7 =o > +f 6. a =No: of Pageviews Website visitors gather Information ? nake Transactions — Clients accessing “their account:

  46. Slide 46: McKinsey Research: European Bank Customers

    McKinsey Research European Bank Customers _ Interested mainly. in the Brand 63% 317 Interested mainly in the

  47. Slide 47: Brand Advertising Campaign: First Results

    "Brand Advertising Campaign” First Results ~ 4

  48. Slide 48: 2000: Projects Underway

    2000: brojects Underway Technology _ x tm Te ee ee ¢ CFN - Class Financial Network ¢ Mediolanum Channel | e New VRU for Stock quotes and Tradin ‘ ¢ Interactivity developments on Teletext fiort Message Service) ° SIM Application Toolkit eWAP Technology

  49. Slide 49: Interactive TV

    Interactive TV 2.5% participation 5 minutes UD On-air ime.

  50. Slide 50: Interactive TV

    Interactive TV Objectives £ ¢ Provide our European futureldistribution networks with Corporate TViprogrammes =, +. - = > : —- = _ i ¢ Create a comp rehensive aroUrAMine line-up attracting both existing andjpotentialfclients + ¢ Become the PG leadenimtire application of this technologies to communica

  51. Slide 51: Call Center: Voice Response Unit

    Gall Center Voice Response Unit # ¢ Automated Stock Quotes? Executed Trading Operations Automated Information on personalised Virtual Portfolio - fi of

  52. Slide 52: Call Center: Teletext

    Gall Center Teletext # j e Executed Trading Operations Cheque Book request. e~ You have mail ! " § i

  53. Slide 53: Mobile Telephone

    Mobile Telephone e Executed Trading Operations ¢ Stock price alerts So i ¢ Banking informationjand operations Need to change SIM Card only x ¢ Full range ofservices\with\web-like user bert | ° WAP phone feded ? nae

  54. Slide 54: Mediolanum Group's Structure

    Mediolanum Group's Structure a [rs Be ae oath = - > h 7 , = 2 —s | Mediolanum — State'Street SIM = Mediolanum) i 150° Comunicazione Srl RRA ns, ——— =| & —_ MediolanumSpAwer40°> Vicenza LifelLtd : — mye — "Wicenza\Funds)ttd Mediolanum & t fg | Xx Vita SpA ~> 4 Nee Gestione Fondi | MediotanmSpny cu uN

Banca Mediolanum — FY1999 Earnings Presentation on 6ix