Banca Generali Generali Banca FY08 Results and 2009 Outlook FY08 - PowerPoint PPT Presentation

Banca Generali Generali Banca FY08 Results and 2009 Outlook FY08 Results and 2009 Outlook Giorgio Girelli, CEO Milan, March 12, 2009

Today’ ’s Agenda s Agenda Today � Preliminary Comments � 2008 Results � 2009 Strategic Guidelines � 2009 Commercial Guidelines � Closing Remarks 2 Banca Generali FY08 Results and 2009 Outlook

Preliminary Comments Preliminary Comments A snapshot on 2008 results and on 2009 planned actions 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 any clients’ need � � A defensive asset allocation started in 2007 (representing 80% of … BG can properly face them total assets) but flexible so to catch any market recovery through its business model and � Clients and FAs satisfied with BG investment advice as confirmed by clients’ investment portfolio… positive net inflows of €686 million in 2008, outperforming market average, and confirmed again at the start of 2009 (€74 million YTD) � The Bank is very solid and liquid � Sticky revenues, being down only 9% yoy … even in an awful 2008, � Very effective cost management is confirmed results are encouraging � Net Profit almost stable excluding write-offs � Dividend pay-out confirmed at > 80% of Net Profit � Increasing business focus on private and affluent clients; The right strategic guidelines � Private Banking business enhanced by the Generali were set well in advance: brand, with BSI becoming a separate division of Banca Generali; New initiatives set to enhance � Gaining market shares, exploiting bank’s solidity, the medium-term strategy brand reputation and FAs and clients willing to find a “safe harbour” . 3 Banca Generali FY08 Results and 2009 Outlook

� Preliminary Comments � 2008 Results � 2009 Strategic Guidelines � 2009 Commercial Guidelines � Closing Remarks 4 Banca Generali FY08 Results and 2009 Outlook

2008 Results 2008 Results 2008 Banca Banca Generali results at a glance Generali results at a glance 2008 Several positive achievements … NET PROFIT NET PROFIT -48% (€ m) 15.3 � Excellent net inflows � Excellent net inflows 7.9 � Improving AUM profitability � Improving AUM profitability � Effective ordinary cost control � Effective ordinary cost control � Tax-rate improvement � Tax-rate improvement 2008 2007 A positive result even in the -55% worst business … notwithstanding financial market pressure conditions 5.9 and one-off items 2.7 4Q08 4Q07 � Falling AUM due to financial market performance � Falling AUM due to financial market performance � One-off costs (consultancy expenses, IT costs, compliance) � One-off costs (consultancy expenses, IT costs, compliance) � 2008 results incorporated 100% of due to regulation requirements and Banca del Gottardo Italia due to regulation requirements and Banca del Gottardo Italia Simgenia 2008 results (-€0.8 m) and integration integration Banca del Gottardo Italia 4Q08 results � €8.1 million write-offs already set in 3Q08 results � €8.1 million write-offs already set in 3Q08 results (+€0.6m) 5 Banca Generali FY08 Results and 2009 Outlook

2008 Results 2008 Results Banca Generali solid balance sheet and comfortable liquidity position Generali solid balance sheet and comfortable liquidity positions led us to confirm s led us to confirm Banca a cash dividend payment for 2008 a cash dividend payment for 2008 Capital NET PROFIT AND PAY-OUT € 15.3m � The company’s balance sheet remains € 14.0m � The company’s balance sheet remains € 7.9m solid with a total capital ratio of 12.14% solid with a total capital ratio of 12.14% 130% (*) 80% and a Tier 1 Capital Ratio of 9% even and a Tier 1 Capital Ratio of 9% even 84% (*) after Banca del Gottardo acquisition after Banca del Gottardo acquisition 2006 2007 2008 � Some actions have been already undertaken � Some actions have been already undertaken • 2007 dividend was paid on the base of c.80% pay-out calculated on the to further increase Total Capital Ratio to further increase Total Capital Ratio adjusted net profit, instead of on the reported in 2009 in 2009 � Banca Generali confirmed its commitment to deliver � Banca Generali confirmed its commitment to deliver a cash return to investors in any market conditions, a cash return to investors in any market conditions, confirming a pay-out ratio of 80% over time confirming a pay-out ratio of 80% over time Liquidity DIVIDEND PER SHARE � Banca Generali is one of the major liquidity � Banca Generali is one of the major liquidity provider in the Italian interbank system €0.18 provider in the Italian interbank system (e-Mid) (e-Mid) €0.10 €0.06* � Banca Generali was one of the first � Banca Generali was one of the first participants of the newly established participants of the newly established 2006 2007 2008 interbank collateralised market (Mic) interbank collateralised market (Mic) (* ) Board of Directors Directors proposal proposal to to AGM due AGM due April April 22, 2009 22, 2009 (* ) Board of 6 Banca Generali FY08 Results and 2009 Outlook

2008 Results 2008 Results Clients’ ’ current asset allocation allows the bank to effectively weather current asset allocation allows the bank to effectively weather the storm the storm Clients FY 2008 Banca Generali Assets Breakdown € 19.0bn (1) � FAs are well placed towards their clients 10% Clients’ asset 80% invested 9% (*) in defensive allocation started to products, be defensive in 2007 but able 27% to catch the � It’s possible to gain and our networks opportunity market share from existing clients 9% never promised of any equity market “equity rebounds” recovery 25% to clients FY08 � Many clients today managed by banks and FAs networks look Life Insurance Current Accounts Security Deposits at Banca Generali Bond, Money Market Funds Capital Protected Products, Total Return/Sicav as a safe and protective provider (* ) excluding the equity portion of capital protected products and total return funds (1) excluding Simgenia (€3.1 bn), Corporate Assets (€1.2 bn) and including Banca del Gottardo Italia (€1.5 bn) 7 Banca Generali FY08 Results and 2009 Outlook

2008 Results 2008 Results Excellent 2008 net inflows, especially in the segment of networks focusing only on ks focusing only on Excellent 2008 net inflows, especially in the segment of networ affluent and private clients affluent and private clients Banca Generali and BSI Italia Excellent Inflows into the products � Banca Generali ranked third in terms � Banca Generali ranked third in terms Total Net Inflows 2008 targeted as strategic of net inflows in 2008 of net inflows in 2008 320 � Net Inflows were driven by BSI Italia, � Net Inflows were driven by BSI Italia, 2,439 686 592 BSI Italia the private banking unit the private banking unit � Inflows moved mainly into the targeted � Inflows moved mainly into the targeted 1,306 94 BG products, with higher profitability products, with higher profitability FY08 (€ m) FY08 (€ m) January 2009 Ranking by Net Inflows 139% (€ m) End-December 2008 Ranking End-December 2008 Ranking 97.1 by Net Inflows by Net Inflows 60% 63% 53% 41% 31% 41.9 43.7 36.6 28.3 21.3 Finanza & Futuro (€ m) Gruppo Allianz Banca Gruppo Intesa Bank Azimut Sanpaolo Gruppo Others Banca Fineco Credem MPS -16.0 Banca Mediolanum Generali 43% -23% -48.2 Gruppo -52.4 2,682 Banca 21% Generali -69% -82.6 11% -75% 1,337 10% -119% 686 Source: Assoreti 648 5% 4% 4% 3% 2% 2% 2% 344 2% 1% 279 270 185 153 144 106 102 Credit Suisse Simgenia Banca 70 Banca SAI Banca SARA Italy Sim CR Firenze Banca Allianz Banca Gruppo Others FinecoBank* Gruppo Banca Gruppo Finanza UBI Banca -62 -120 Banca Nuova Alto Adige Generali and Bank Mediolanum Credem Banca Network Azimut & Futuro Private Inv. -158 Banca BSI Italia** Fideuram Investimenti -177 -1% -198 -2% -2% -2% -3% * Xelion data not avaible * * Simgenia not included (85% of Simgenia sold, as announced December 19, 2008) Source: Assoreti 8 Banca Generali FY08 Results and 2009 Outlook

2008 Results 2008 Results 2009YTD excellent Inflows highlighting a clear recovery in quality of sales ty of sales 2009YTD excellent Inflows highlighting a clear recovery in quali 2009 YTD Net Inflows Jan-Feb Banca Generali Net Inflows: 2008 vs. 2009 € m Jan-Feb 2009 Jan-Feb 2008 € m 77 Mutual Funds 62 -132 Asset Management -26 -356 40 37 Mutual Funds and Asset Management 36 -488 Life Insurance 111 284 4 -3 -7 Managed Assets 147 -204 Cumulative 09 Feb 09 Jan 09 Non Managed Assets -73 323 of which: Securities -45 240 Banca Generali BSI Italia Total 74 119 2009 YTD Net Inflows in Strategic Products 2009 Net Inflows: Banca Generali vs. Assogestioni € m 68.5 € m 192 46.1 22.4 111 Life insurance Life insurance Jan 09 Feb 09 Cumulative 09 54 -€2.9 bn -€4.9 bn 27 -€7.8 bn 2009YTD BG Selection Sicav, BG Sicav and BG SGR Total Assogestioni Net Inflows Source Assogestioni 9 Banca Generali FY08 Results and 2009 Outlook