Banca Generali S.p.a. · MIL:BGN
Banca Generali — FY2009 Earnings Presentation
32 slides from Banca Generali's earnings presentation, Mar 8, 2010
Slide 1: FY09 Results and 2010 Outlook
Banca Generali FY09 Results and 2010 Outlook Milan, March 8, 2010
Slide 2: Agenda
¾ 2009 Results ¾ Net Inflows, AUM and recruiting ¾ 2010 Strategic and Business Guidelines ¾ Closing Remarks 2 Banca Generali FY09 Results and 2010 Outlook
Slide 3: 2009 Banca Generali results at a glance
2009 Results 2009 Banca Generali results at a glance: what else? FY09 Net profit at €63.2 mln, +697% yoy Booming Net Profit 4Q09 Net profit at €17.6mln, +560.4 %qoq (€ m) Net Profit Constant Dividend DPS €0.45 (vs. €0.06 in FY 2008) Pay-out and record 80% Dividend Payout 63.2 Dividend Yield
Slide 4: Pay-out policy confirmed, delivering one of the best yields in the industry
2009 Results Pay-out policy confirmed, delivering one of the best yields in the industry Consistency in pay-out policy… … driving to a record Dividend 80% Per Share (DPS) € 63.2m 80% 130% 1 84% €0.45 (2) € 14.0m € 15.3m € 7.9m €0.18 2006 2007 2008 2009 €0.10 €0.06 Net Profit Pay-out 2006 2007 2008 2
Slide 5: Consolidated FY09 Profit and Loss Account
FY09 Results Consolidated FY09 Profit and Loss Account (€ mil.) FY 08 FY 09 % Chg FY 09 LfL % Chg (reported) (reported) (excl. GIL) Net Interest Income 61.2 49.3 -19.5% 49.2 -19.6% Commission income 238.7 315.5 32.2% 296.4 24.2% Commission expense -126.3 -133.5 5.7% -119.5 -5.4% Net Commission 112.4
Slide 6: Excellent top line growth with total revenues increasing by some 50% yoy
FY09 Results Excellent top line growth with total revenues increasing by some 50% yoy Breakdown of Net Banking Income (LfL) (€ m) 247.1 +49% 49.2 (20%) 165.8 ¾ Net Banking Income +49% yoy, driven primarily by a 58% surge in net commissions 61.2 (37%) 176.9 ¾ Even excluding performance fees, net (72%
Slide 7: Excellent gross commissions trend, with management fees sharply speeding up
FY09 Results Excellent gross commissions trend, with management fees sharply speeding up Breakdown of Gross Commissions (LfL) Management fees (LfL; qoq change) (€ m) (€ m) Shift towards managed products is starting to 296.4 bring benefits +24% 57.3 (19%) +38% 238.7 45.8 +11% (16%) 5.2 (2%) +6% 47 41
Slide 8: Pay-out well under control, leading to a 58% increase in net commissions
FY09 Results Pay-out well under control, leading to a 58% increase in net commissions FY09 Net Commissions (LfL) Pay-out trend* (LfL) (€ m) +58% Pay-out Pay-out isis subject subject to to aa 176.9 seasonal seasonal increase increase in in 4Q, 4Q, as as incentives incentives onon - 4.1 p.p. sales sal
Slide 9: Solid interest margin supported by amortised costs contribution
FY09 Results Solid interest margin supported by amortised costs contribution Interest Margin (yoy) 3M Euribor (average) 4.67% 4.61% -19.6% 61.2 49.2 1.66% 0.80% 1H08 2H08 1H09 2H09 FY 08 FY 09 (€ m) 7.4 ¾ Interest ¾ Interest income income proved proved extremely extremely solid solid in in 2009, 200
Slide 10: Excellent cost management in 2009, setting the decrease in 2010 and onwards
FY09 Results Excellent cost management in 2009, setting the decrease in 2010 and onwards Operating Costs Breakdown (LfL) 2009 (€ m) +1% 150.3 148.9 137.8 ¾ Operating ¾ Operating cost cost increased increased by by only only 1% 1% yoy, yoy, to to 43% €150 €150 million million while while they they sh
Slide 11: Asset growth well outpacing cost growth in 2009
9M09 Results Asset growth well outpacing cost growth in 2009 AUM +17% ... … while recurring operating costs - 7.4% Staff costs (fixed) falling Recurring operating -3.5% expenses 40.7 (€ bn) 39.3 €mln. FY08 FY09 +17.2% (€ m) FY 08 FY 09 Staff Costs 48.6 48.1 -1.0% (fixed) Sales staff costs (fixed) in
Slide 12: Profitability ratios well improving compared to last year
FY09 Results Profitability ratios well improving compared to last year AUM Profitability (LfL) Cost/Income Ratio (LfL) - 18.7 b.p. +21 bps 1.24% in 4Q09, adjusting for the tax shield impact 74.7% 1.74% 56.0% 1.53% 1.47% 1.21% 1.17% 0.33% 0.27% 0.25% FY08 (1) FY09 FY 08 FY 09 AUM profitability from r
Slide 13: Agenda
¾ 2009 Results ¾ Net Inflows, AUM and recruiting ¾ 2010 Strategic and Business Guidelines ¾ Closing Remarks 13 Banca Generali FY09 Results and 2010 Outlook
Slide 14: 2009 net inflows contributed to the best year ever
Net Inflows, AUM and recruiting 2009 net inflows contributed to the best year ever if combining volumes and product mix 2006-2009 Total Net Inflows Net Inflows in Administered Assets1 Net Net inflows inflows in in administered administered (€ m) assets assets are are entirely entirely linked linked
Slide 15: Tax Shield: a great opportunity, fully exploited by Banca Generali
Net Inflows, AUM and recruiting Tax Shield: a great opportunity, fully exploited by Banca Generali 2009 Tax Shield €2 billion, out of which 98%(€1,960 mln) represented by physically Contract signed repatriated assets and only 2%(€40 mln) by legally repatriated assets (“rimpatrio giuridico”) Abou
Slide 16: 2009 total assets sharply increased to €22.2 billion
Net Inflows, AUM and recruiting 2009 total assets sharply increased to €22.2 billion… Banca Generali Assets Breakdown Lux-based Assets (€ bn) (€ m) 4,219 Lux-based assets 42% set for a further 964 sharp increase in 2,980 +17.2% 2010 731 22.2 45% 3,255 19.0 2,249 5.8 (26%) 4.7 (25%) 2008 YE FY09 BG S
Slide 17: Excellent average performance, evenly spread across all product range
Net Inflows, AUM and recruiting … with an excellent average performance, evenly spread across all product range Total Asset Banca Generali In-House Funds Total AUM Performance delivered - Weighted Investment Performance - to the clients(1) 18.5% 16.0% 22.2 8.3% 12.9% (€ bn) 11.6% 960 bps extra Mutua
Slide 18: Generali Fund Management, development fully in line with target
2010 business guidelines Generali Fund Management, development fully in line with target Generali Fund Management (GFM) currently manages about €12 billion assets Existing fund lines are currently under review with the goal of optimizing them Insurance products with GFM’s SICAV as underlying are cur
Slide 19: Recruiting – FY09 results in line with year-end targets
Net Inflows, AUM and Recruiting Recruiting – FY09 results in line with year-end targets FY09 Recruiting Targets FY09 Recruiting Results N. FAs AUM (€m) N. FAs AUM (€m) 133 223 Relationship Manager 9 ¾ Recruiting ¾ Recruiting in in 2009 2009 broadly broadly 5 outpaced outpaced the the target target f
Slide 20: Distribution networks well above peers in terms of size
Net Inflows, AUM and recruiting Banca Generali distribution networks well above peers in terms of size and ready to seize new market challenges “Promotori” “Promotori” ranking ranking by by size size (AUM/financial (AUM/financial advisor) advisor) Network Split (FY 2009) 1,266 (n°) 229 40.0 69 34.8
Slide 21: Agenda
¾ 2009 Results ¾ Net Inflows, AUM and recruiting ¾ 2010 Strategic and Business Guidelines ¾ Closing Remarks 21 Banca Generali FY09 Results and 2010 Outlook
Slide 22: Wide product offer and effective performance delivery: a story of successful advice
2010 strategic guidelines Wide product offer and effective performance delivery: a story of successful advice … 2005-06 2005-06 2007 2007 2008 2008 2009 2009 2010 2010 1 .3 0 0 Still defensive asset allocation 1 .2 0 0 with excellent seizing of the market 1 .1 0 0 upside, fund of funds, flexible and
Slide 23: 2010 business strategy aimed at exploiting current growth opportunities
2010 business guidelines … boding well for 2010 business strategy aimed at exploiting current growth opportunities in terms of net inflows and profitability Asset under Management Acquisition of new clients through dedicated +17.2% An unrivalled growth strategy fully developed and shared with the
Slide 24: Acquiring new customers, leveraging on the excellent results achieved
2010 business guidelines Acquiring new customers, leveraging on the excellent results achieved, particularly over the last 2 years New dedicated actions for the acquisition of new clients through: ¾ Intense ¾ Intense training training sessions sessions for for the the network network ¾ Dedicated ¾ D
Slide 25: Recruiting top financial advisors, focusing only on high-profile professionals
2010 business guidelines Recruiting top financial advisors, focusing only on high-profile professionals ¾ Recruiting ¾ Recruiting process process is is very very selective, selective, with with the the goal goal of of focussing focussing only only on on high high profile profile financial financial
Slide 26: Further expansion in the Lux-based FoF product offer
2010 business guidelines Further expansion in the Lux-based FoF product offer 2008 2Q 2009 4Q 2009 2010 8 geographical lines +1 geographical lines +1 geographical lines Investment 3 global equity +5 flexible/total return lines +1 global equity +3 flexible/total return 2 flexible/total return +3 flex
Slide 27: Insurance, further progress in the process of upgrading the asset mix
2010 business guidelines Insurance, further progress in the process of upgrading the asset mix Strong improvement in life new business quality … 2010 new product launches (€ m) 1,657 1,313 93 BG Valore Plus offer the chance to redeem on a yearly basis the revaluated share of 1,306 1,220 segregated a
Slide 28: Asset transformation, ready to exploit Banca Generali new and wide product base
2010 business guidelines Asset transformation, ready to exploit Banca Generali new and wide product base Lux-based Funds of Funds (FoF) Third-Party Funds 23 lines of Fund of funds, 12 managed in-house and 11 by primary international asset managers New Life Policies Potential assets Life insurance po
Slide 29: Agenda
¾ 2009 Results ¾ Net Inflows, AUM and recruiting ¾ 2010 Strategic and Business Guidelines ¾ Closing Remarks 29 Banca Generali FY09 Results and 2010 Outlook
Slide 30: 2009: An excellent year, leading Banca Generali to solid growth in 2010
Closing Remarks Closing Remarks 2009: An excellent year, in any respect, which is leading Banca Generali to a solid growth in 2010 and beyond The organic growth, by the existing networks, is steady both in quantity and quality High client satisfaction suggest further growth in their share of wal
Slide 31: Closing Remarks
Closing Remarks Closing Remarks Banca Generali is going on, never changing since the beginning, to be a winning model based on unrivalled strategic characteristics: 1. Brand awareness and reputation 2. True and fast growing open architecture, much more advanced than the competition (banks and F.A. n
Slide 32: 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