Banca Mediolanum Spa · MIL:BMED
Banca Mediolanum Spa — Mediolanum — FY2000 Earnings Presentation
45 slides from Banca Mediolanum Spa's earnings presentation, March 2001
Slide 1: Consolidated Reclassified Results
5 aa MEDIOLANUM Consalidgted Reclassified Results
Slide 2: Assets under administration, profit and net profit
assets: lundersAdministration Profit hefore Tax & El: Net Profit
Slide 3: Euro millions
Euro millions” Pgs as ball ‘i - \ 8 ot
Slide 4: Bank and Institutional Assets
Bank Assets 373] 6:5 Institutional Assets 286:3 = Consolidation Adjustment 4 M761. : iFibanc » Euro millions 1/855 1 e788". ~ 21077 “1,817.9 +35.9% +51.9%
Slide 5: Life Reserves
» Traditional Annuities > Index-linked > Unit-linked Life Reserves in own Mutual Funds 23507 2,972. me 5731p 1,156.3 et | 2238)3)9 al mi +84.8% +e =2,929:4 ee 699.4 452.2%
Slide 6: Mutual Funds assets
a Euro millions 31'12:99 Sichanvceay > Equity Funds 1,805.5 2,171.2 -16!87 > Bond Funds 630.1 966.8 3418 70% > Monetary Funds 263.4 388.9 532:37 a4 1. +88.3% i? > Equity Funds /4/323:0, 923296: » Protected Funds 202:9 qth 64.9% > Bond & Monetary Funds » 99991)442.2 9 +57.7% MASinown Mutual Funds ee
Slide 7: Asset Development by Location
Asset Development by Location i a FE hitions HD ai »
Slide 8: Cash and Securities under Deposits
Cash under Deposits Securities under Deposits Repurchase Agreements Subordinate Loans * Euro millions ier ie 1,343.8 726.7 +84!97 ) 1,853.9 1,076.8 ee: +) 93:0" 916 +80.2% 258
Slide 9: Mediolanum's Assets under Administration
Mediolanum: $s Assete ‘Under Administration Italian Household Assets A 302.1 264.6 1497 «(161.9 3604 225.7 241.5 1999
Slide 10: Number of Agents
| DUTICM MCUIUIAIIGT! _ WUE ” . ee VO. of Agents ©@ Non-ticensed Advisors’ Licensed Financial Advisors; - } "a if 1995-9996 1997 1998 1999 2000
Slide 11: Financial Advisors networks
> Non-licensed Financial Advisors » Licensed’ Financial Advisors Banca Mediolanum* Partner Time TOTAL NETWORKS ~-.«iitt..No. of Agents a | 2,163 1,205 +791576 = 3,018 2,513 t20.1% 3718 +39.3% 51810
Slide 12: Unduplicated customers
(unduplicated) +25% a * “a ._
Slide 13: Mutual Funds & M.A. Gross and Net Inflows
Mutual Funds &'M. A. Gross Inflows Mutual Funds & M.A. Net Inflows PremianincomeWin > +257 es Q—
Slide 14: Mutual Funds & M.A. inflows
Mutual Funds & MiA.* -_ > Equity Funds > Bond Funds > Monetary Funds > Equity Funds » Protected Funds > Bond & Monetary Funds TOTAL GROSS INFLOWS * Retail sac 504.0 126.8 1748 ow 48 1,586.7 it Euro millions 392.0 16 255.1 -5 0939 a) e:t2’ i 1,024.8 +54.8% 50.2 -90.5% 352.6 “11.0%
Slide 15: Euro millions
Euro millions Te
Slide 16: Extraordinary Items and Income Tax
+ Extraordinary Items = Income Tax ea »~. Euro millions -44.0 2 ail
Slide 17: Breakdown by Business
000 P 9 7€ Breakdown, bysBusin - Mutual arty Other Operations PROFIT BEFORE TAX & E.I.
Slide 18: Euro millions
» Euro \ SAMS 96 97 98 99 Ob © ie millions J
Slide 19: Revenues
Euro millions ae — ne miums} AN - Reinsurance ceded -16.4 -29.4 Mutual Fund Commissions 264'om 18935) 2959 1b >denilallic oN. Other Commissions & Other Revenues TOTAL REVENUES
Slide 20: Life new business
i. Euro millions | 2000) ED Gem » Individual Pension Plans 130: 80.6 +6 138% +21216% > Investment Policies , 0.2 12:67 > Open Pension Funds ] 0.4 +12718% 5 Moe > Tradit./Group/Invest. Pol. ; 21.1 §,25.9% > Unit-linked Policies 28.9 911 5396-0% > Index-linked Policies 67720 25:9% Total New Business 2
Slide 21: Commissions
a ail # Euro millions Entry Fees ssl 94.5 8 Management Fees pits — Performance Fees , 35.6 +15.4% TOTAL COMMISSIONS li
Slide 22: Breakdown by Location
Breakdown by Location on Italy-hased Funds (33.9%) > Performance 4 - FeeSyay//o MgmtiFees Entry Fees 1693770 255% Ent 10.6% Mgmt:Fees Performance Fees 8.6%
Slide 23: Securities, Managed Accounts, Other Services
Euro millions —E : - — ~ 2000 1999 Change Ik , Securities 90 130.4% » Managed Accounts 0.9°.~ +766.6% > Other Services 8.9 +32.6%
Slide 24: Costs and expenses
Claims, Benefits paid, Changesii in)Reserves Acquisition Costs G&A Expenses Advertising Expenses Depreciation > te Euro millions ts a 1,321.1 1,143.1 +15/6% Saba 2326) 15119) dud 138.9 92.6 7.1 0.8 " 2 aan
Slide 25: Reasons for the increase
Reasons for. thesincrease - > Increase injmanpower —_ > Increase inthe cost of asset management of outsourced Ireland-basedjFunds "hee > Increase in the numberof bank accounts ge ~ _ Ox
Slide 26: Value of business
Sine thillions value OT, TT Orce: ‘business
Slide 27: Investment Return
investment Return 9.1% 7.0% he a 5.10% Segregated Funds 6.85°Unit-linked Funds
Slide 28: Embedded Value Earnings
— Change over the year Dividends paid EMBEDDED VALUE EARNINGS 2000 308 Euro millions TREE) 539 le
Slide 29: Embedded Value Earnings
> Expected increase in EV > Change in assumptions » NAV Decrease™™ > Margin Variation > Higher Surrenders > Transformation/other >» New business - life Pee 195 > New business.- funds & m.a. , e 140 EMBEDDED VALUE EARNINGS 102
Slide 30: Bank Assets
| t Bank Assets Institutional Assets Consolidation Adjustments , jf
Slide 31: July - December 2000
July - December 2000 a Euro millions + Extraordinary Items 7 4 Income Tax
Slide 32: July - December 2000
July - December 2000 -Relating to Minority Interests | - Goodwill /Depreciation ] j ; * from Spain Operations
Slide 33: Dividends per share
‘ — MEMMENDividendswpersharei_> 0.096 <i Dividend payout 60% o-
Slide 34: Mediolanum and the market slowdown
M EDIO! sANUM Aow Mediolanum mak age market slowdown ond
Slide 35: Italian Stock Market and Mediolanum's Assets
Italian Stock Mkt « _Mediolanum's Assets _ Historiggl gy? eo E + Far Filo Oke 85 86 87989 90 91 92 93 94 95 96 97 98 SOND) i oad Le
Slide 36: Mediolanum's Strategies
Mediolanum's Strategies > Good Communication i > Being a Global Player: other businessiinesiin managed and non-managed savings > On-going Savings Projects ont
Slide 37: Recent inflows
> MutualiFunds &°M.A. > Life’Policies > Securities > Cash : * at March 16, 2001 Euro millions
Slide 38: Products and Development
Products and Development ts
Slide 39: Life Insurance
Life Insurance — ¥- > ‘Europension Tax Benefit’ that takes advantage) | of new fiscal benefits * > Single Premiums, for investment thatvar reno longer subject to the 2.5% tax on premiums
Slide 40: Mutual Funds and Managed Accounts
Mutual Funds and*Managed Accounts > "S" Funds (clones of the existing funds with no entry fees and higher management fees) « Ss » Chorus’ extended down to investment evel’ between 50,000 and 100,000 Euro ~ *
Slide 41: Accounts
Accounts basedioniac own fms YTh’ September, MU Captive Open)Architectur Products
Slide 42: Improved Credit Card and Credit Lines
Fa > Improved ‘Credit Card’ > Special ‘Credit Lines’ — | “~ > - Y a <X
Slide 43: Current Accounts and online customers
pencuirrentAccounts we Customers mActiveiradersi— > 22 000 es Pageview ~ (daily: ieee» 300, i Nisitorswentayl— > 28,000 of,which ediolanum Tistoniers—,> 8,900
Slide 44: Networks of advisors
>» Non-licensed Financial Advisors 2,276 2,163 » Licensed ‘ ~ Financial Advisors 3,045 3,018 Banca Mediolanum* 5321. ONS ly Partner Time 1,494 1,198 TOTAL NETWORKS 61815 67379 ~ Ye,
Slide 45: Recurring Premiums
Recurring Premiums —— Euro ‘000 y= of total vn recurring premiums N