Slide 1: FY08 Results and 2009 Outlook
Banca Generali FY08 Results and 2009 Outlook Giorgio Girelli, CEO Milan, March 12, 2009
Slide 2: Today's Agenda
Today’s Agenda ¾ Preliminary Comments ¾ 2008 Results ¾ 2009 Strategic Guidelines ¾ 2009 Commercial Guidelines ¾ Closing Remarks 2 Banca Generali FY08 Results and 2009 Outlook
Slide 3: Preliminary Comments
Preliminary Comments A snapshot on 2008 results and on 2009 planned actions Dramatic financial Extraordinary pressure on financial markets and on the mutual fund industry markets … Clients are more and more looking for solidity and individual financial solutions The product platform may meet a
Slide 4: Agenda: 2008 Results
¾ Preliminary Comments ¾ 2008 Results ¾ 2009 Strategic Guidelines ¾ 2009 Commercial Guidelines ¾ Closing Remarks 4 Banca Generali FY08 Results and 2009 Outlook
Slide 5: 2008 Banca Generali results at a glance
2008 Results 2008 Banca Generali results at a glance NET NET PROFIT PROFIT Several positive achievements … -48% (€ m) 15.3 ¾ Excellent ¾ Excellent net net inflows inflows 7.9 ¾ Improving ¾ Improving AUM AUM profitability profitability ¾ Effective ¾ Effective ordinary ordinary cost cost control contr
Slide 6: Solid balance sheet and liquidity led to confirm a cash dividend for 2008
2008 Results Banca Generali solid balance sheet and comfortable liquidity positions led us to confirm a cash dividend payment for 2008 Capital NET PROFIT AND PAY-OUT € 15.3m ¾ The ¾ The company’s company’s balance balance sheet sheet remains remains € 14.0m € 7.9m solid solid with with aa total tota
Slide 7: Clients' current asset allocation allows the bank to weather the storm
2008 Results Clients’ current asset allocation allows the bank to effectively weather the storm FY 2008 Banca Generali Assets Breakdown € 19.0bn (1) FAs are well placed towards their clients 10% 80% invested 9% (*) Clients’ asset in defensive allocation started to products, but able 27% be defensi
Slide 8: Excellent 2008 net inflows, especially in affluent and private networks
2008 Results Excellent 2008 net inflows, especially in the segment of networks focusing only on affluent and private clients Banca Generali and BSI Italia Excellent Inflows into the products ¾ Banca ¾ Banca Generali Generali ranked ranked third third in in terms terms Total Net Inflows 2008 targeted
Slide 9: 2009 YTD excellent inflows highlighting a recovery in quality of sales
2008 Results 2009YTD excellent Inflows highlighting a clear recovery in quality of sales 2009 YTD Net Inflows Jan-Feb Banca Generali Net Inflows: 2008 vs. 2009 €m €m Jan-Feb 2009 Jan-Feb 2008 77 Mutual Funds 62 -132 Asset Management -26 -356 40 37 Mutual Funds and Asset Management 36 -488 4 Life Ins
Slide 10: Business model provides a good resilience of revenues
2008 Results Banca Generali business model provides a good resilience of revenues Breakdown of Net Banking Income (1) (€ m) ¾A ¾ A strong strong interest interest margin margin (+42% (+42% yoy), yoy), also also -9.0% supported supported byby the the contribution contribution of of Banca Banca del de
Slide 11: Recurring fees increased to 81% of total gross commissions in 2008
2008 Results Recurring fees increased to 81% of total gross commissions in 2008 Breakdown of Gross Commissions (1) (€ m) -19.3% 295.7 ¾ Gross commissions were hit by falling AUM 9.1 (3.1%) 238.7 60.2 (20.3%) 5.2 (2.2%) and by a more conservative asset mix. 40.7 (17.0%) Performance fees maintain a ne
Slide 12: AUM profitability improved
2008 Results AUM profitability improved AUM Profitability 2008 AUM Profitability Trend (*) +13 b.p. 1.63% 1.61% 1.56% (*) 1.60% 1.51% 1.43% 1.39% 1.53% 2007 2008 (*) 1Q 08 2Q 08 3Q 08 4Q 08 AUM profitability excluding perform. fees Performance Fees * excluding Simgenia and Corporate Assets, includin
Slide 13: Very effective management of operating costs continues
2008 Results Very effective management of operating costs continues Operating Cost Breakdown (1) (€ m) + 1.7% ¾ Staff costs increased by 2.7% yoy, -1.5% stripping out Banca del Gottardo contribution 137.8 127.5 129.7 ¾ The increase related to the new banking contract (+5% in 2008) was more than offs
Slide 14: Defensive investment portfolio neutralising impact on P&L and balance sheet
2008 Results Defensive Investment portfolio, neutralising the impact on P&L and Balance Sheeet Investment Portfolio Breakdown 31.12.08 ¾ Banca ¾ Banca Generali Generali investment investment portfolio portfolio further further Funds/SICAV/Other (0.1) Equities (0.01) strengthened strengthened its its
Slide 15: Consolidated Profit and Loss FY08 Results
2008 Results Consolidated Profit and Loss FY08 Results (1) (€ m) FY07 FY08 % Chg (reported) (reported) 2008 Results: Other Items Net Interest Income 43.1 61.2 41.9% Commission income 295.7 238.7 -19.3% ¾ Impact of market volatility on P&L Commission expense -147.3 -126.3 -14.2% has been reduced thro
Slide 16: Committed to the network development strategy
2008 Results Banca Generali remains committed to the strategy started several years ago in terms of network development “We don’t need numbers of FAs, but quality of them” Number of Financial Advisors of Banca Generali and BSI Italia AUM/Financial Advisor (*) 2,006 (n°) (€ m) -17.5% 11.5 1,655 20% +
Slide 17: Agenda: 2009 Strategic Guidelines
¾ Preliminary Comments ¾ 2008 Results ¾ 2009 Strategic Guidelines ¾ 2009 Commercial Guidelines ¾ Closing Remarks 17 Banca Generali FY08 Results and 2009 Outlook
Slide 18: New strategic projects to reinforce the Bank
2009 Strategic Guidelines New strategic projects to reinforce the Bank The strategic guidelines set in 2007/08 should allow Banca Generali to effectively face current bad landscape To further strengthen the bank’s profile, two important strategic projects have been launched: Strengthening of the ¾ L
Slide 19: Enhancement of Private Banking business through Generali brand leveraging
2009 Strategic Guidelines Enhancement of Private Banking business through Generali brand leveraging CURRENT STRUCTURE AS OF JAN. 1, 2009 NEW STRUCTURE FROM JAN. 1, 2010 Affluent Affluent Clients Clients Asset Gathering Private Private Affluent Clients Private Banking Clients Clients Division (*) 240
Slide 20: Comprehensive action plan aimed at improving cost efficiency
2009 Strategic Guidelines Very comprehensive action plan aimed at improving cost efficiency Delivery Main Actions of cost efficiency Integration of Banca del Gottardo 100% Italia 2009 Overhead 0% 70% 100% Integration of BSI Italia into and staff cost Banca Generali 2009 2010 2011 reduction Rat
Slide 21: Agenda: 2009 Commercial Guidelines
¾ Preliminary Comments ¾ 2008 Results ¾ 2009 Strategic Guidelines ¾ 2009 Commercial Guidelines ¾ Closing Remarks 21 Banca Generali FY08 Results and 2009 Outlook
Slide 22: Two main commercial guidelines driving 2009 business actions
2009 Commercial Guidelines Two main commercial guidelines driving 2009 business actions ¾ Increasing the share of wallet of existing clients ¾ Revamping sales of “small” clients with high potential 1. Steadily Growing Net Inflows ¾ Acquiring new clients ¾ Recruiting top FAs and RMs ¾ Further expansi
Slide 23: Steadily Growing Net Inflows (1/3): Pushing banking product penetration
2009 Commercial Guidelines Steadily Growing Net Inflows (1/3): Pushing banking product penetration to gather new assets from existing clients Penetration of banking products within Banca Generali customers is largely unexploited 36% € 152k € 21k TOTAL CUSTOMERS* 16% 225,000 AUM/Clients with AUM/Clie
Slide 24: Steadily Growing Net Inflows (2/3): Revamp sales of small clients
2009 Commercial Guidelines Steadily Growing Net Inflows (2/3): A new project to revamp sales of “small” clients with high potential ¾A ¾ A strategic strategic project project developed developed with with the the support support of of Boston Boston Consulting Consulting Group Group highlighted highl
Slide 25: Steadily Growing Net Inflows (3/3): Acquiring new clients and recruiting advisors
2009 Commercial Guidelines Steadily Growing Net Inflows (3/3): Acquiring new clients and Recruiting top financial advisors 2009 RECRUITING TARGETS (n°) 20 10 RECRUITING 1,358 5 237 60 FA- FA-BG RM- RM-BSI+BDG PB- PB-BSI 2008 Network Data 2009 Estimated Recruiting (Gross) ¾ Current lack of strategic
Slide 26: Enhancing profitability (1/3): Expansion of Lux-based FoFs
2009 Commercial Guidelines Enhancing profitability levels (1/3): Further expansion of Lux-based FoFs leveraging on product innovation ¾ Banca ¾ Banca Generali Generali is is set set to to launch launch aa new new range range of of FoFs FoFs within within BG BG Selection Selection Sicav Sicav umbrell
Slide 27: Enhancing profitability (2/3): New range of insurance products
2009 Commercial Guidelines Enhancing profitability levels (2/3): New range of insurance products ¾ Banca ¾ Banca Generali Generali developed developed aa very very comprehensive comprehensive product product offer offer for for 2009 2009 ranging ranging from from traditional traditional policies pol
Slide 28: Enhancing profitability (3/3): Asset transformation from security deposits
2009 Commercial Guidelines Enhancing profitability levels (3/3): Asset transformation from Security Deposits ¾ One ¾ One of of the the key key actions actions in in 2009 2009 will will be be that that of of transforming transforming security security deposits deposits and and old old policies polici
Slide 29: Agenda: Closing Remarks
¾ Preliminary Comments ¾ 2008 Results ¾ 2009 Strategic Guidelines ¾ 2009 Commercial Guidelines ¾ Closing Remarks 29 Banca Generali FY08 Results and 2009 Outlook
Slide 30: Closing Remarks: Key Guidelines for 2009
Closing Remarks Key Guidelines for 2009 Banca Generali set the right strategic guidelines to face a very stormy weather well in advance: Business model: - fully comprehensive product platform (banking products, life insurance, asset management) able both to retain clients’ assets and to attract ne
Slide 31: Banca Generali looks ahead: Our pillars for 2009
Closing Remarks Banca Generali looks ahead… We continue to manage the company Our pillars for 2009 with a real medium-term strategic goal We can’ can’t predict duration and intensity 1 1 Real defensive and tailor- tailor-made of the crisis: we are convinced that investment profile started in 2007 a
Slide 32: Investor Relations Team
Investor Relations Team Giuliana Giuliana Pagliari Pagliari Investor Investor Relations Relations Officer Officer Tel Tel +39 +39 02 02 6076 6076 5548 5548 Federico Federico Mangiagalli Mangiagalli Tel Tel +39 +39 02 02 6076 6076 5545 5545 Fax Fax +39 +39 02 02 6682 6682 854 854 E-mail E-mail invest
Slide 33: 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