Slide 1: 2011 Full Year Results and 2012 Outlook
Banca Generali 2011 Full Year Results and 2012 Outlook Milan, March 13, 2012
Slide 2: Today's Agenda
Today’s Agenda ¾ FY 2011 Results ¾ Net Inflows, AUM and recruiting ¾ 2012 Business Outlook ¾ Closing Remarks 2 Banca Generali 2011 Full Year Results and 2012 business outlook
Slide 3: 2011 results: best quality result for Banca Generali, allowing to propose a €0.55 DPS
FY 2011 Results 2011 results: best quality result for Banca Generali, allowing to propose a €0.55 DPS (dividend yield at 5.7%) Key 2011 Achievements Net Profit (yoy) 82.2 Best class net profit 6.0 73.4 2011 net profit broadly matched 2010 level (excl. 2010 one-off tax benefit), as higher recurring r
Slide 4: Banca Generali can confirm a very satisfactory dividend policy
FY2011 Results Banca Generali can confirm a very satisfactory dividend policy, on the back of its solid balance sheet Dividend per Share (DPS) Dividend Yield 75% 84% 5.9% 5.7% (2) 80% €0.55 €0.55 (1) 5.2% €0.45 2009 2010 2011 2009 2010 2011 Pay-out (1) Board of Directors proposal to AGM scheduled fo
Slide 5: Consolidated 2011 Profit and Loss Account: main takeaways
FY 2011 Results Consolidated 2011 Profit and Loss Account: main takeaways (€ mln) 12M10 12M11 % Chg 12M10 12M11 Var.% (reported) (reported) (excl. GIL) (excl. GIL) Net Interest Income 43.2 49.1 13.4% 43.2 49.0 13.4% ¾ Interest ¾ Interest margin margin increase increase Commission income 373.4 355.1
Slide 6: Strong growth in recurring business offset poor market-driven revenues
FY 2011 Results The strong growth in the recurring business offset a poor contribution from market-driven revenues Analysis of variation in net profit (LfL) (€ m) Poor financial markets … counterbalanced by a stronger … without the one-off performance… operating performance… tax benefit of 2010 82.2
Slide 7: 2011 revenues broadly stable in value, better in mix and sustainability
FY 2011 Results 2011 revenues were broadly stable in value, but significantly better in terms of mix and sustainability Breakdown of Net Banking Income (LfL) Recurring Revenues (LfL) (Interest margin, management, front and banking fees) -2.7% 247.2 224 240.5 +16% 43.2 193.6 (18%) +13.4% 49.0 (20%) 2
Slide 8: Recurring commissions make up 97% of total gross fees
FY 2011 Results Recurring commissions make up 97% of total gross fees Gross Commissions (LfL) Breakdown of Gross Commissions (LfL) Performance fees sharply 2010 40.5 impacted by financial 346.3 327.0 Performance 2011 9.8 markets’ trend in 2011 fees -76% 3% Performance Fees 12% 10% Front Fees 10% 201
Slide 9: Net commissions were up 16% yoy, stripping out performance fees
FY 2011 Results Net commissions were up 16% yoy, stripping out performance fees Pay-out trend excl. Perf. Fees (LfL) Net Commissions excl. Perf. Fees (LfL) +43% 50.8% 174.9 +16% 49.4% 44.8% 150.3 122.4 2009 2010 2011 2009 2010 2011 (€m) Pay-out trend incl. Perf. Fees (LfL) Net Commissions incl. Perf
Slide 10: Interest margin growth accelerating in 4Q2011, boosted by LTRO
FY 2011 Results Interest margin’s growth sharply accelerating in 4Q2011, boosted by the participation to LTRO in 2011 Quarterly Net Interest Margin (LfL) Net Interest Margin (yoy) 49.0 +50% 43.2 +13.4% 15.7 +33% 11.8 11.1 10.4 10.5 4Q10 1Q11 2Q11 3Q11 4Q11 2010 2011 (€ m) (€ m) Deposits (yoy) 4Q 201
Slide 11: Cost discipline maintained, operating costs flat
FY 2011 Results Cost discipline maintained, as operating costs were flat (+0.8%) in the period Operating Costs Breakdown (LfL) Staff costs (€ m) 63.3 63.1 -3.0% -0.2% (€ m) 150.3 +0.8% 145.7 144.5 2010 2011 43% 43% (63.1) Costs were fully stable, reflecting a slight (65.4) 44% (63.3) decrease in the
Slide 12: Recurring Profitability further improving
FY 2011 Results Recurring Profitability further improving compared to the same period of last year Management fees contribution AUM Profitability (LfL) to AUM profitability +6 bps 1.08% 1.70% 1.61% 1.02% 0.18% 0.04% 1.47% 1.36% 2010 2011 1.34% 1.57% 1.53% +4 bps (€ m) Average underlying AUM 0.19% 0.
Slide 13: Today's Agenda
Today’s Agenda ¾ FY 2011 Results ¾ Net Inflows, AUM and recruiting ¾ 2012 Business Outlook ¾ Closing Remarks 13 Banca Generali 2011 Full Year Results and 2012 business outlook
Slide 14: Record net inflows generation in 2011, with positive momentum in 2012
Net Inflows, AUM and recruiting Record net inflows generation in 2011, with positive momentum still going on in 2012 Total Net Inflows Net Inflows from Tax Shield 169 1,260 1,464 1,101 405 405 xxxxx Net Inflows from Organic Growth 612 2009 2010 2011 Jan-Feb 2012 (€ m) Net inflows from Tot. Net Inflo
Slide 15: Banca Generali continuing to grow and accelerating in poor markets
Net Inflows, AUM and recruiting Banca Generali is continuing to grow and even accelerating in one of the worst periods for financial markets (€ m) Total Monthly Net Inflows in 2011 1,260 178 165 162 145 106 108 Almost 82 €1.3 bn 69 69 75 59 42 24 Jan2011 Feb2011 Mar2011 Apr2011 May2011 Jun2011 Jul20
Slide 16: Total assets proving resilient in 2011
Net Inflows, AUM and recruiting Total assets proving resilient in 2011, even if hit by the decrease in financial markets worldwide Asset Breakdown 2012 YTD Asset Appreciation (€ bn) -1.4% +4.5% 24.3 +4.5% 23.6 23.3 23.3 6.6 (28%) -11% 5.9 (25%) -16% 2.8 (12%) 3.4 (14%) +7% 7.3 (31%) 6.8 (29%) 2011 E
Slide 17: Banca Generali distribution network in a snapshot
Net Inflows, AUM and recruiting Banca Generali distribution network in a snapshot Network Split Split by size of portfolio (n°) 1,499 1,471 1,154 259 29% 30% 21% 21% 58 40% 39% 10% 10% 2010 2011 FA Private banker RM Top ( > €15m) High (>€10m) Middle (€10-4m) < €4m 18.0 15.8 Banca Generali’s FAs rank
Slide 18: Recruiting focussed on top quality people
Net Inflows, AUM and recruiting Recruiting focussed on top quality people FY11 Recruiting Results FY11 AUM/FA €m N. FAs AUM (€m) -6% Avg. AUM/FA ¾ Banca ¾ Banca Generali Generali hired hired 52 52 €21.0 m 32.2 +2% 315 29.7 30.2 professionals professionals since since the the start start of of 2011,
Slide 19: Today's Agenda
Today’s Agenda ¾ FY 2011 Results ¾ Net Inflows, AUM and recruiting ¾ 2012 Business Outlook ¾ Closing Remarks 19 Banca Generali 2011 Full Year Results and 2012 business outlook
Slide 20: Market still offers significant growth opportunities
2012 Business Outlook Market still offers significant growth opportunities for the industry and particularly for Banca Generali Italian Households Assets High stock of savings: (€ bn) Italian Household assets at 5.7% of 8,638 worldwide financial assets Banca Generali very well Still managed belo
Slide 21: Banca Generali managed the widening of the spread on Italian govies
2012 Business Outlook Banca Generali successfully managed the widening of the spread on Italian govies … that commanded An extraordinary event … an extraordinary reaction Spread BTP-Bund Launch of a wide range 553 550 of new products 500 - BG DAY – 450 400 350 September 19 300 311 250 301 to profit
Slide 22: Time to move clients towards long-term investment products
2012 Business Outlook Now it is time to move on, driving clients towards more long-term investment products After having successfully managed the worst crisis of Italian govies… … Back to Normal Increase shift towards managed products ¾ FoF/Sicav (BG Selection) ¾ Discretionary accounts (BG Target) ¾
Slide 23: About 25% of assets still invested below potential
2012 Business Outlook About 25% of Banca Generali assets are still invested below potential Back to Normal 23.3 C/A and D/A 8.0 Assets that can be switched over time into Security Deposits managed products, in line with (~1/3 of tot. Old life policies assets) investors’ profile Old portfolio mgmt li
Slide 24: Asset diversification and capital protection key drivers of managed products offer
2012 Business Outlook Asset diversification and capital protection key drivers of Banca Generali’s offer of managed products Back to Normal Unparallel diversification tool √ Unique choice of the best international asset managers √ Unique diversification across sectors and markets √ Wide range of inv
Slide 25: Today's Agenda
Today’s Agenda ¾ FY 2011 Results ¾ Net Inflows, AUM and recruiting ¾ 2012 Business Outlook ¾ Closing Remarks 25 Banca Generali 2011 Full Year Results and 2012 business outlook
Slide 26: Key business objectives for 2012
Closing remarks Banca Generali key business objectives for 2012 Banca Generali is confident that its business guidelines will drive the company towards a profitable and sustainable growth for many years ahead, in any market conditions ¾ Continuous focus on new clients’ acquisition ¾ Strengthening th
Slide 27: 2012 Upcoming Corporate Events and Investor Relations Contacts
2012 Upcoming Corporate Events APRIL Investor Relations Contacts Su Mo Tu We Th Fr Sa Shareholders Meeting Giuliana Pagliari 1 2 3 4 5 6 7 to approve 2011 results (1st call) Head of Investor Relations Tel +39 02 6076 5548 8 9 10 11 12 13 14 E-mail:giuliana.pagliari@bancagenerali.it 15 16 17 18 19 20
Slide 28: 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