Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2007 Earnings Presentation
14 slides from Banca Generali's earnings presentation, May 7, 2007
Slide 1: 2007 First Quarter Results
2007 First Quarter Results Giorgio Girelli, CEO Milan, May 7, 2007
Slide 2: Today's Agenda
Today’s Agenda ● Net Inflows and Assets Under Management ● Consolidated Profit & Loss at March 31, 2007 ● Key Performance Indicators ● FA Network ● Revenues Breakdown ● New Products ● Annex ● What’ What’s Next 2 2 Strictly Private and Confidential
Slide 3: First quarter 07 confirmed that advice is still the winning tool to generate superior inflows
First quarter 07 confirmed that advice is still the winning tool to generate superior inflows Italian Italian Market Market Net Net Inflows Inflows by by Distribution Distribution Channel Channel (a) (a) (€ bn) 56.4 20.0 17.0 9.7 9.8 9.3 7.4 4.8 2.6 2.5 0.4 (0.9) (3.2) (8.9) (9.5) (10.9) (21.1) (25.
Slide 4: Banca Generali showed a strong growth of Net Inflows and AuM
Banca Generali showed a strong growth of Net Inflows and AuM (€ m) 2006 2006* 1Q 1Q 2007 2007 16.7% 16.7% 2.372 12.8% 12.8% 12.8% 12.8% Market share up to 21.4% in 1.820 1.805 11.1% 11.1% 10.7% 10.7% Net Inflows at March 07… 1.573 1.509 21.4% 21.4% 15.7% 15.7% 705 14.0% 14.0% 11.3% 6.3% 11.3% 6.3% 5
Slide 5: Consolidated Profit & Loss 1Q 07 (like-for-like basis)
Consolidated Profit & Loss 1Q 07 (like-for-like basis) 31/3/2006 (€ m) 31/3/2007 % Chg (LfL) NET INTEREST INCOME 5.6 9.8 75.6% Commission income 60.1 74.4 23.8% Commission expense -26.1 -34.2 31.1% NET COMMISSIONS 34.0 40.1 18.1% Net income (loss) from banking activities 4.2 1.6 -63.0% Dividends 0.3
Slide 6: Very good Key Performance Indicators
Very good Key Performance Indicators AUM AUM Profitability Profitability (1) (1) Cost/income Cost/income ratio ratio (2) (2) +0.03 p.p. -8.1 p.p. 70.1% -6.9 p.p. +0.09 p.p. 1.37% 62.0% 1.34% 55.1% 1.25% 2005 2006 2005 2006 1Q 2007 1Q 2007 Ebitda Ebitda (3) (3) (€ m) 69.8 34.8 23.2 2005 2006 1Q 2007
Slide 7: Positive results in recruiting are leading to a better and better FA network mix
Positive results in recruiting are leading to a better and better FA network mix No. No. of of FAs FAs IN/OUT IN/OUT at at 1Q 1Q 07 07 (a) (a) BG BSI PF Total IN OUT IN OUT IN OUT Top (>10 € m) 6 3 16 1 22 4 Middle (4-10 € m) 6 12 2 - 8 12 <4€m 6 33 - - 6 33 Total 18 48 18 1 36 49 * (€ m) Total AUM
Slide 8: The top-line is becoming more and more composed by recurring and non-volatile components
The top-line is becoming more and more composed by recurring and non-volatile components (€ m) Breakdown of Net Banking Income (a) Breakdown of Gross Commissions (a) 194.2 51.6 279.9 74.4 Net Interest Margin 15% 19% Front Fees 21% 23% 68% Net Commissions Management Fees 77% 78% 68% Performance Fees
Slide 9: New products in the pipeline to give a boost to inflows and profitability
New products in the pipeline to give a boost to inflows and profitability Protected Capital • Alfa (Best in class of International markets) Discretionary • Cinindia (the growth of Indian and Chinese markets) To be launched: May 14, 07 Accounts (“Protected GPM”) • China and India fund of funds To be
Slide 10: Annex - Consolidated Profit & Loss 1Q 07
Annex - Consolidated Profit & Loss 1Q 07 (€ m) 31/3/2006 31/3/2007 % Chg NET INTEREST INCOME 4.8 9.8 105.4% Commission income 55.5 74.4 34.1% Commission expense -25.9 -34.2 32.1% NET COMMISSIONS 29.5 40.1 35.9% Net income (loss) from banking activities 3.8 1.6 -59.5% Dividends 0.3 0.0 NET BANKING IN
Slide 11: What's Next
What’s Next •• Tuesday Tuesday July July 31, 31, 2007: 2007: 10:00 10:00 am am CET CET Board Board Meeting Meeting to to approve approve 2Q 2Q 2007 2007 results results 3:00 3:00 pm pm CET CET Conference Conference Call Call •• Tuesday Tuesday October October 30, 30, 2007: 2007: 10:00 10:00 am am CE
Slide 12: Contacts
Contacts Investor Investor Relations: Relations: Paola Paola Buratti Buratti Tel Tel +39 +39 02 02 6076 6076 5548 5548 Fax Fax +39 02 6682 854 +39 02 6682 854 E-mail E-mail investor.relations@bancagenerali.it investor.relations@bancagenerali.it Institutional Institutional Website: Website: www.banca
Slide 13: Glossary
Glossary • Assets Under Management (AUM): Mutual funds, managed fund and share portfolios, life insurance policies and administered assets • AUM Profitability: (Gross Commissions + Net Interest Margin) / Average AUM • Cost Income ratio: (Total Administrative Expenses + Other Expenses – Other Income
Slide 14: 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 rec