Banca Mediolanum SpA · MIL:BMED
Banca Mediolanum SpA — Mediolanum — H1 2000 Earnings Presentation
37 slides from Banca Mediolanum SpA's earnings presentation, 2000
Slide 1: Gruppo Mediolanum H1 2000 Interim Consolidated Results
MEDIOLANUM GRUPPO MEDIDLANUM H4)2000 Interim Consolidated Results
Slide 2: Assets under Administration +34%
Assets under Administration| — +34% Gross Inflows into Mutual Funds & Managed Accounts +710% Y Gross Premium Income +49% y 4
Slide 3: Euro millions
Euro millions
Slide 4: Assets under administration breakdown
Life Reserves 4,578.9 +26.7% Mutual Funds & Managed Accounts 6,028.6 +39°7% Bank Assets 1,272.0 +105:8% Institutional Assets 81:1 +270:0% Euro millions
Slide 5: Life Reserves
LifeyReserves _«¢ Traditional Annuities ¢ Index-linked ¢ Unit-linked e Vicenza Life Life Reserves in own Mutual Funds ae a, Euro millions 30.6.99 4°978.9 3,318.2 733.5 307.2 Change +26.7% 20.8% +8951% +231.6%
Slide 6: Mutual Funds and Managed Accounts by fund type
¢ Equity Funds ¢ Bond Funds ¢ Monetary Funds ¢ Equity Funds ¢ Protected Funds ¢ Bond & Monetary Funds Euro millions +7.4% -49.9% -25.8% +364:3% =61.97/ +10477%
Slide 7: Mutual Funds & Managed Accounts Assets Development by Location
Mutual Funds & Man Assets Development by Location 45 1,243 Ireland Italy 4291 31747 3,989 931079 1997 1998 1999 41 2000 Euro millions
Slide 8: Bank Assets
Change Cash under Deposits +62.7% Securities a under Deposits +147.6% Repurchase Agreements / Se LTA +105.87% Euro millions
Slide 9: Spontaneous awareness
wate Spontaneous” awareness 10% 87 8s 0.8% l Banca Credito Mediolanum Italiano $an Paolo
Slide 10: Current Accounts growth
Current Accounts" growth March August00/99 +79% VA. Current Accounts growth — F March@Apri ona th AA
Slide 11: P&L Results and Bank Customers
P&L'Results 1998 1999 H1,:2000 netof Advertising expenses as of Dec'3151999 | as of Jun30,;2000 Bank'Customers asofbec31,1999|_ =» 222 00 — =K as of Jun 30, 2000) 279: 000
Slide 12: Sales Network
n Networ! , 1 2000) 1999 ¢ Non-licensed Financial Advisors 1,728 1,061 »° Licensed (4 Financial Advisors 2,882 2,334 Banca Mediolanum~ 4610 35395 “of which j Financial Executives, j71 241 | 369 om Partner Time 663 446 gee ast) STOTAUINETWORKE 5,273 3,841 +37.3%
Slide 13: Total Revenues and Profit before Tax
Total Revenues Profit before Tax & E.l. Extraordinary Items Profit hefore Tax Euro millions H1 2000 853.5 87.5 1:6 89.1 “29.6 63.5 H1 1999 Change 970.0 +49.7% 71.5 +22.4% 04 Vy 11.9, +23:9% 2518 VW 0%, 46.1 +37.7%
Slide 14: Profit before Tax by business
H1 1999 Change (Life Insurance 37.9 +20.5% Mutual Funds : 30.5 +30:2% Bank 2! -1.2. -100. 0.07 Other Operations 1 43° 30129 ML 4 PROFITBEFORETAXGIEI@ © © 87.5 TES er Euro millions
Slide 15: Revenues breakdown
Figett_ TE Ps ae H1 2000 H1 1999 Change Gross’ Premiums Written 679.1 484.9 Reinsurance ceded -7.5 15:9 ~ Mutual Funds Commissions 148.0 82.2 Bank Revenues 30.9 14:3. Other Commissions & Other Revenues 3.0 45 970.0 §=+49.7% Euro millions
Slide 16: Life insurance premium income by product
« Unit-linked Pension Plans e Investment Policies ¢ Open Pension Funds MRecurring Policies) Tradit:/Group/Invest. Pol. ¢ Unit-linked Policies e Index: linked Policies F + Pension Plans in force __* Investment Policies in force Euro millions +26.4% +23.5% -95.570 +622747% +168:570 4 +60.3% +20%27 720
Slide 17: Mutual fund fees
Entry Fees 98.5 30.5 +91.8% Management Fees 60.3 37.9 +5951% Performance Fees 29.2 13.87 +1116% Euro millions
Slide 18: Fees composition
Performance Fees)7:67 MgmtiFees Entry Fees 152570 27.99, Entry Fees Ne rerformance Mgmt Fees Fees 12.1% 25.2%
Slide 19: Banking Margins
Bank Interests Banking Margins ¢ Securities e Other Services Euro millions H1 2000 10.0 20.9 14.2 6.7 H1 1999 Change 7.0 +42.9% 7.3 +186. 3 3. oF 14.3. +116.1%
Slide 20: Costs breakdown
Claims, Benefits paid, Changes in Reserves Recov. tron Reinsurance Acquisition Costs G&A Expenses Advertising Expenses Depreciation Euro millions H1 2000 602.4 -9:1 108.7 65.1 11.1 13.4 H1 1999 Change 440.6 “31.8 62.7 43.9 030 8.7 +36.7%
Slide 21: Claims and Maturities, Surrenders
a Claims & Maturities 63.1 441 +43.1% e “Pull in our Nets’ 22.9 34.7. -34.0% ° Surrenders 212.9 69.1 +208°17 Euro millions
Slide 22: Surrenders and reserves
H1 2000 Hl 1999 Surrenders of Recurr. Policies (No) Reserves (Euro/mil) % of Reserves Surrenders of -Orox [No] Reserves (Euro/mil) % of Reserves Total Surrenders (No) Average Total Reserves — (Euro/mil) %ofReservese Oté‘s—s—sCS™S Euro millions
Slide 23: Gross inflows into mutual funds
tat a ' 4 Bice oli lls Euro millions er ¢ Equity Funds ¢ Bond Funds ¢ Monetary Funds ¢ Equity Funds ¢ Protected Funds ¢ Bond & Monetary Funds *inflows from Mediolanum Vita not included +64.0% “91.5% “36.5% +164.1% 10°17
Slide 24: Projects 2000-2001
MEDIOLANUM Projects 2000:--2001
Slide 25: Changes & Challenges
Slide 26: Website Launch Results as of August 2000
Website Launch Results as of August 2000 Noaof.Current/Accounts 65,000 No: of Clients 98/000 No..of Clients trading online 9,000 ) of fase lew 200,000 daily ‘average
Slide 27: Website Developments
Website Developments ¢ On-line Trading in foreign stock markets e Non-financial services e Managed Savings'products with hasic financial advice
Slide 28: Main Factors
Main Factors e The Bank project ¢ The Financial Executives project
Slide 29: Customer base upgrading
Noxof;BankClients 280,000 Total.No..of Metiolanum Clients 963,000 Avg,Assets,per account 42:000 E> 51,000 Assets > 360000 ae 10% = 14%
Slide 30: Strategic Guidelines
Strategic |Guidelines ¢ On-line channels’ offer designed to meet the entire market needs; not only self-doers ° Pricing reflecting cost structure of the channels and value perception-of the customer
Slide 31: On-line Channel
On-line Ghannel ¢ Managed Accounts sFunds of Funds | C> Adve Seeker ¢ Funds Supermarket C-> Self Doers
Slide 32: Wealthier Clients
Wealthier,-Clients Personalized products with higher advice content & customer, involvement ee Frequent contacts New proprietary programme with software for financial advisor asset allocation
Slide 33: Mutual Funds
Mutual Funds ¢ Classes in Challenge and Top Managers e Managed Accounts based on Mediolanum funds and related to the customer propensity to risk 6 Funds of Funds investing also in third-party/funds ¢ 16 additional subfunds for Challenge (12 Equity & 4 Bond funds) * 1 additional subfund for, Top\Mana
Slide 34: New Business Initiatives
MEDIOLANUM NOWIBTsiness = hl tiat tives Fibanc JV Mediobanca/Mediolanum
Slide 35: Mediobanca/Mediolanum JV
Euro millions 367 249 259 132 126 5 5 36 82 84 85 86 87 88 89 90 91 92 93 9495 9G 97 98 99 Jul 00
Slide 36: Mediobanca-Mediolanum Private Bank
Mediobanca-Mediolanum® Private Bank We, wantto,become © Mitnuk A the’reference pony of High Net Worth individuals for all their private banking requirements
Slide 37: Mediobanca/Mediolanum Private Banking
Mediobanca/Mediolanum Private Banking Mediolanum Comunicazione Srl ; tate SHEIINY “stems ro 4 ines" Vicenza funds td cro Fibanc a Mateen Si 75... ait Mediolanum Int! oe ands Ltd