Slide 1: 2012 Results and Business Outlook
2012 Results and Business Outlook Milan, 8 March 2013
Slide 2: Today's Agenda
Today’s Agenda 2012 Results Net Inflows, AUM and Recruiting 2013 Business Outlook Closing Remarks Banca Generali 2012 Results and Business Outlook 2
Slide 3: An excellent set of 2012 results and a promising start into 2013
An excellent set of 2012 results and a promising start into 2013 Net Profit Excellent set of 2012 results • Record net profit at €129m (+76%) 129.2 • Improving profitability ratios with gross margin at 1.87% and ROE at 58.3% +76% • Strong AUM growth (€26.2 bn, +12%), driven by buoyant net 73.4 inflo
Slide 4: Confirmed commitment to a generous dividend policy
Confirmed commitment to a generous dividend policy Dividend per Share (DPS) Dividend Yield 0.90 1 6.4% 2 5.9% 5.7% 5.2% 0.55 0.55 3.6% 0.45 2.6% 0.18 0.9% 0.10 0.06 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 Banca Generali Share Price Dividend Pay-out 16.0 Last price €14.1
Slide 5: Group 2012 results: main takeaways
Group 2012 results: main takeaways Strong increase in Net (€ m) 12M11 12M12 % C hg 12M11 12M12 % C hg (reported) (reported) (excl. GIL) (excl. GIL) Interest Income thanks to higher volumes and higher Net Interest Income 49.1 111.6 127.4% 49.0 111.5 127.5% investment yield on the C ommission income 3
Slide 6: Strong growth in total revenues spread throughout business lines
Strong growth in total revenues spread throughout business lines Total Revenues (ex “GIL”) Total Revenues ex-LTRO (ex “GIL”) 331.1 290.9 +24% 235.1 +40% 111.5 237.0 (34%) (€ m) 49.0 (21%) 207.2 181.2 (62%) 2011 2012 (€ m) (76%) • Total revenues at €331m (+40%) with a growing 6.7 (3%) 12.4(4%) contri
Slide 7: Net interest income more than doubled, driven by favourable investment conditions
Net interest income more than doubled, driven by favourable investment conditions Net Interest Income (ex “GIL”) Stable LTRO contribution • LTRO assets amount to €1.3 bn (26% of total banking book) 111.5 • They have fully matched maturities, which allow to estimate a broadly stable P&L contribution
Slide 8: Gross commissions driven by higher assets and positive fund performance
Gross commissions driven by higher assets and positive fund performance Breakdown of Gross Commissions Quarterly management fees (ex “GIL”) (ex “GIL”) 355.6 +13% 322.6 +10% 62.8 65.8 9.8 (3%) 50.2 (14%) 61.2 61.5 33.6 (11%) 27.1 (8%) 58.2 +5% 4Q11 1Q12 2Q12 3Q12 4Q12 249.2 251.3 (77%) • Quarterly ma
Slide 9: Stable retrocession policy to the distribution networks
Stable retrocession policy to the distribution networks Net Commissions (ex “GIL”) Pay-out ratio excl. perf. fees (ex-”GIL”) 50.8% 48.6% 45.2% 207.2 +14% 2010 2011 2012 181.2 (€ m) Net Inflows (€ m) 1,270 1,602 1,260 2010 2011 2012 No. of new Recruits 46 52 53 2011 2012 2010 2011 2012 Banca Generali
Slide 10: Increase in operating expenses linked to new IT investments
Increase in operating expenses linked to new IT investments Staff costs Operating expenses (ex-GIL) 65.1 net of stamp duty1 +3% 63.0 (€ m) 142.5 +4.6% 136.3 2011 2012 • Staff costs incorporated an higher variable component due to strong company results G&A ex-stamp duty 74.5 +7% 69.6 2011 2012 2011
Slide 11: Profitability ratios provide evidence of company's positive business trend
Profitability ratios provide evidence of company’s positive business trend AUM profitability Cost/Income ratio ROE 1.87% 1.70% 1.59% 0.20% 0.18% 0.04% 55.8% 58.3% 1.67% 53.3% 1.53% 1.55% 41.7% 41.8% 38.9% 2010 2011 2012 2010 2011 2012 2010 2011 2012 Performance Fees Figures excl. “GIL” Banca General
Slide 12: Solid Capital Ratios and higher excess capital
Solid Capital Ratios and higher excess capital Excess Capital Tier 1 Capital Ratio Total Capital Ratio 11.8% 13.3% 11.1% 12.8% 13.0% 106.0 11.0% 89.6 89.1 2010 2011 2012 2010 2011 2012 2010 2011 2012 (€ m) Banca Generali 2012 Results and Business Outlook 12
Slide 13: Today's Agenda
Today’s Agenda 2012 Results Net Inflows, AUM and Recruiting 2013 Business Outlook Closing Remarks Banca Generali 2012 Results and Business Outlook 13
Slide 14: Sustained 2012 growth pace in net inflows continues in 2013
Sustained 2012 growth pace in net inflows continues in 2013 Net Inflows split by quarter and mix Total Net Inflows 240 543 1,602 501 +27% 108 410 369 1,260 318 49 293 436 144 167 410 143 274 174 217 65 -1 -23 2011 2012 Jan-Feb 2013 Funds/Sicav/Portfolio management -403 Insurance Net Inflows in manag
Slide 15: 2012 signed a record year for net inflows
2012 signed a record year for net inflows 2500 Banca Generali yearly net inflows 2,076 2000 1,863 1,602 1500 1,360 1,270 1,246 1,260 970 € 1.0 bn 1000 773 686 435 541 410 500 0 -244 -500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD Average yearly net inflows (2000-2012)
Slide 16: Banca Generali is significantly outpacing market growth (1/2)
Banca Generali is significantly outpacing market growth (1/2) Ranking by total net inflows 19.5% 19.4% 16.6% … 15.1% Market share 13.4% 9.6% 7.8% 2,324 2,316 1,985 1,804 1,602 1,142 935 1.6% 1.5% 186 182 37.0 (€ m) Source: Assoreti, figures at Dec. 2012 Ranking by No. of Financial Advisors 23.4% 20.
Slide 17: Banca Generali's networks rank N°1 by productivity (2/2)
Banca Generali’s networks rank N°1 by productivity (2/2) Ranking by FA productivity (Net Inflows/Financial Advisors) +98% 1,102 857 818 804 620 607 539 555 468 355 (€ ‘000) Source: Assoreti, figures at Dec. 2012 Banca Generali 2012 Results and Business Outlook 17
Slide 18: Banca Generali's distribution networks rank N°1 by portfolio's size
Banca Generali’s distribution networks rank N°1 by portfolio’s size Ranking by FA portfolio size (AUM/FA) (€ m) +48% 18.0 16.0 14.0 13.9 12.2 12.2 9.8 8.6 8.6 8.0 6.8 6.6 Source: Assoreti, figures at Dec. 2012 Banca Generali 2012 Results and Business Outlook 18
Slide 19: Recruiting results
Recruiting results 2012 Recruits Jan-Feb 2013 Recruits FAs AUM FAs AUM 249 90 9 2 505 120 44 9 754 210 53 11 (€ m) (€ m) Banca Generali’s yearly recruits 135 119 96 59 51 52 53 46 Banca Generali 2012 Results and Business Outlook 19
Slide 20: Net inflows and fund performance lifted assets by 12% to €26.2 bn
Net inflows and fund performance lifted assets by 12% to €26.2 bn Asset Breakdown Breakdown of Lux-based assets by product (€ bn) 26.2 5.0 5.2 +12% 23.3 6.8 +7% 4.9 (26%) 4.6 Funds/SICAVs 5.9 (25%) 0.4 0.3 3.1 2011 2012 (12%) Portfolio 2.8 Management (12%) 8.5 Life Insurance 7.3 (32%) • Growth in al
Slide 21: Excellent performance delivery to customers
Excellent performance delivery to customers Weighted Avg. Asset Breakdown Performance (Avg. 7.7%) € 4.2 bn FoF +7.6% Portfolio +20.2% € 3.1 bn Management Other +8.0% € 2.6 bn Other funds/SICAVs +8.2% € 8.5 bn Insurance +6.2% Current Accounts € 7.8 bn & Deposits Trasferimento titoli Banca Generali 20
Slide 22: Today's Agenda
Today’s Agenda 2012 Results Net Inflows, AUM and Recruiting 2013 Business Outlook Closing Remarks Banca Generali 2012 Results and Business Outlook 22
Slide 23: Successfully navigating in a ITA-GER 10Y spread world
Successfully navigating in a ITA-GER 10Y spread world Key product campaigns and relative results since 2011 Launch of a life policy with Italian sovereign as underlying assets Vs. panic on Italy’s default €620 m Net Inflows Switch out of cash and low yield bonds into a diversified Spread range of fu
Slide 24: Key Business Actions for 2013: Rebalancing Asset Mix (1/3)
Key Business Actions for 2013: Rebalancing Asset Mix (1/3) In September we recommended enhancing risk profile in clients’ portfolio… CBOE Vix Index MSCI World 1600 30 25 • Improving market 1400 sentiment 20 1200 15 • Decreasing interest rates 10 1000 in euro-zone periphery leading to the search for
Slide 25: Key Business Actions for 2013: Rebalancing Asset Mix (2/3)
Key Business Actions for 2013: Rebalancing Asset Mix (2/3) …and there is still scope for a further increase Asset Mix: Banca Generali vs. Peers • Current BG exposure to Managed 38% managed assets is products 49% + significantly below peers • Low equity exposure at 19% of total assets Insurance 32% (
Slide 26: Key Business Actions for 2013: Rebalancing Asset Portfolio (3/3)
Key Business Actions for 2013: Rebalancing Asset Portfolio (3/3) ACTUAL OBJECTIVE We target a 3-4 p.p. increase in the share of Managed products Managed equity/flexible funds products We target a selected review of current Insurance exposure to cash and banking products Insurance through our advisor
Slide 27: Key Business Actions for 2013: Product Review (1/4)
Key Business Actions for 2013: Product Review (1/4) A few new launches to integrated current wide product offer Developed Markets Global/Emerging Market Bond Multibrand Investment solutions Fund of Funds Wide range of strategies/Multibrand Equity/Flexible Strategies Third-party retail funds Equity e
Slide 28: Key Business Actions for 2013: Product Review (2/4)
Key Business Actions for 2013: Product Review (2/4) Investment opportunities in Low yield in major developed European Sovereign risk specialised countries looming large segments/geographies Search for attractive return in the bond market requires an active ad flexible approach, open to the global fi
Slide 29: Key Business Actions for 2013: Product Review (3/4)
Key Business Actions for 2013: Product Review (3/4) 9 Investment return: 8 BG Vita Vs. IT. Govt bond 3Y 7 6 5 avg 4.5% Insurance Products 4 4.5% 4.6% 4.6% 3 • Insurance products used as a proxy 2 of bond investments in view of their stable return generation and capital 1 4.2% guarantee 0 2009 2010 2
Slide 30: Key Business Actions for 2013: Product Review (4/4)
Key Business Actions for 2013: Product Review (4/4) BG Selection: an unrivalled investment solution EQUITY Global FLEXIBLE Global EQUITY Developed markets EQUITY Emerging FLEXIBLE markets Emerging markets New Equity mandates by year-end Banca Generali 2012 Results and Business Outlook 30
Slide 31: Today's Agenda
Today’s Agenda 2012 Results Net Inflows, AUM and Recruiting 2013 Business Outlook Closing Remarks Banca Generali 2012 Results and Business Outlook 31
Slide 32: Market crisis can mean growth opportunities for those who have the flexibility to manage them
Market crisis can mean growth opportunities for those who have the flexibility to manage them… What we have learnt from the recent crisis ITA-GER 10Y bond Spread Market crisis can be opportunities for both… +72 bps …Our Customers… • Exploit investment opportunities with a long-term view avoiding sho
Slide 33: The 2008-2012 crisis has turned to growth drivers for Banca Generali
… the 2008-2012 crisis has turned to growth drivers for Banca Generali in terms of profits and size… Euro Crisis Euro Crisis Recession in Italy Lehman BTP-Bund Asset The world collapse Repatriation SPREAD vs 2008 2009 2010 2011 2012 3° Best ranking in Asset Capital Repatriation Diversification Trust
Slide 34: Our mission
… so we plan to manage also this new one in favour of our customers and our company Our mission Focusing on client’s investment needs and asset revaluation Our strategy Our targets Leverage our market expertise and flexibility in • Protecting customer’s assets in a volatile new product launching env
Slide 35: 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
Slide 36: 2013 Upcoming Corporate events
2013 Upcoming Corporate events APRIL Su Mo Tu We Th Fr Sa Investor Relations Contacts 1 2 3 4 5 6 AGM to approve 2012 results 7 8 9 10 11 12 13 (1st call) 14 15 16 17 18 19 20 Giuliana Pagliari Investor Relations Officer 21 22 23 24 25 26 27 Tel +39 02 6076 5548 28 29 30 E-mail: giuliana.pagliari@ba