INVESTOR PRESENTATION 1H 2019 RESULTS
AGENDA Strategy and business update Our Mission: Commercial trend Being the No.1 Private Bank 1H 2019 results by Value of Service, Appendix: Financials Innovation and Sustainability Appendix: Sector Trend
BANCA GENERALI: A GROWTH STORY ONE OF THE FASTEST GROWING COMPANIES IN THE ASSET GATHERING BUSINESS PHASE 1 PHASE 2 New management team Multi-year strategic network repositioning New service model: implementation of and listing on the Italian WM approach and new digital mindset Stock Exchange 62.9 57.5 55.7 47.5 41.6 36.6 29.1 26.2 23.6 23.3 22.2 21.4 20.7 19.0 15.8 bn/ € 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H19 BG growth = 1.9x Assoreti growth 1 BG growth ~ Assoreti growth Market 7.7% 9.2% 9.0% 10.3% 10.1% 10.0% 10.1% 10.2% 10.4% 11.6% 12.1% 12.6% 13.3% 13.9% 14.0% share 2 NOTE: 1) ex ISPB and BG; 2) Market share ex-ISPB and like-for like basis; 3 SOURCE: Assoreti
BANCA GENERALI: A GROWTH STORY A LEADING PLAYER IN THE ITALIAN PRIVATE BANKING SPACE Ranking in the private banking in Italy PB ranking by banking group 1 2018 2015 Intesa San Paolo 153.2 Assets Unicredit 142.1 40 € bn 3° Banca Generali 40.0 su 10 UBI Banca 37.8 BNL BNP Paribas 35.4 UBS 30.0 8° 25 € bn Credem 28.8 su 10 Deutsche Bank 28.4 Mediobanca 28.1 Banco BPM 26.4 SOURCE: Magstat - Il Private Banking in Italia 2019; NOTE 1: ranking by Banking Groups as of 31.12.2018 of which Unicredit including PB+Finecobank WM+Cordusio SIM; 4 UBI Top Private+IW Bank WM, Credem PB+B.Euromobiliare, Mediobanca PB+Che Banca! WM +Spafid F.O. Sim; Banco BPM= Banca Aletti
QUALITY OF THE NETWORK NETWORK ORGANIZATION DRIVEN BY PORTFOLIO SIZE AND SKILLS Clusters (% of Assets) Numbers of FAs Assets per capita Advisors organized in three main networks by portfolio Wealth 76.7 m/ € 2 307 1 34% size and needs, with bespoke Managers Financial Advisors supports to each cluster The most radical Private 28.0 m/ € 2 1,174 1 51% reorganization completed Bankers in the Italian FAs industry in years Financial Perfect alignment of 10.9 m/ € 2 401 1 7% Planners interests between FAs and BG Employees Relationship 69.9 m/ € 2 72 1 8% Managers NOTE: Data as of 31.06.2019 - 1) Headcount excluding 68 managerial and support roles; 2) Average portfolios excluding managers ( € 1.2bn), direct Clients ( € 0.9bn) 5 and last twelve months recruits; 54 teams are counted as single headcount; FPA aggregated with financial planners
BEST FAS QUALITY IN THE INDUSTRY CONSTANT GROWTH IN FAS PORTFOLIO Average FAs portfolio (Asset per Financial Advisor) m/ € Best Player ex BG Assoreti (ex BG, ISPB) Banca Generali 31.1 28.8 29.0 25.8 24.3 22.2 1 24.3 23.2 25.0 19.7 22.0 18.0 16.6 20.7 1 16.1 15.9 15.9 15.6 18.7 20.2 15.8 18.3 18.5 14.5 16.0 16.8 16.4 15.7 14.9 15.1 14.2 13.9 12.6 11.9 11.6 11.5 9.7 10.0 9.9 7.9 8.9 7.8 7.1 7.4 6.7 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H19 6 SOURCE: Assoreti, excluding ISPB and Credem; 1) data as of 31.03.2019
CLIENTS OVERVIEW STEADY GROWTH IN THE PRIVATE SEGMENT N. of Clients by cluster (‘000) No. of Clients with assets Total Assets by cluster of Clients (Total Assets >10 k/ € ) > € 500K/ € € /bn (Total Assets >10 k/ € ) 62.7 57.3 1.6 m/ € 1.6 m/ € 228.3 222.9 25.008 22.621 11% 10% 65% 63% 165.3 28.8 32% 32% 1.5 m/ € 6% 25% 10.746 55% 27% 26% 58% 57% 69% 30% 9% 9% 15% 2013 2018 1H19 2013 2018 1H19 2013 2018 1H19 Clients <100 k/ € Clients <500 k/ € Clients >500 k/ € Avg. Assets per private Client 7
EXTENSIVE PRODUCT OFFER WELL-DIVERSIFIED PRODUCT MIX Asset mix 1H19 Total Assets Fully open architecture (Over 5,400 62.9 bn/ € different retail funds and 50 asset managers Traditional Life Insurance offering Clients a wide array of choice) 27% 1 In-House Funds 13% Retail funds distribution accounts for 24%of total assets of which 90% managed 26% by external AMs 3rd Party Funds Wrapper solutions – starting from 2014 – 14% with an increasing level of Financial Wrappers personalization , linked to Clients assets: (Portfolio Management) NEW Insurance Wrappers : bespoke hybrid 10% Insurance Wrappers insurance policy combining traditional 13% life, unit-linked component and insurance riders Securities 14% 24% 10% 23% Financial Wrappers : portfolio Current Accounts management lines maximizing advisors’ freedom to customize asset allocation Managed Assets: 73% 8 NOTE: 1) In-house funds include: LUX IM (previously BG Sicav) and BG Selection
WEALTH MANAGEMENT APPROACH EXPANSION OF ADVISORY PERIMETER TO FINANCIAL AND NON FINANCIAL WEALTH Focus on Real estate Advanced Advisory Model (financial + non financial) Advisory : Financial Real • Strategic analysis of real assets estate estate wealth • Valuations Agency • Disposals and purchases Focus on Corporate Corporate Inheritance Merger & Acquisition Dynamic hedging Easy finance (finanza agevolata) Art Focus on Family protection, wealth planning Succession planning Legal and fiscal support PARTNER LAW FIRMS Wealth protection Trust services 9
BG AMBITIONS 2019-21 BUSINESS PLAN I To consolidate our leading position in Empowering FAs empowering the best Financial Advisors (FAs) in the Italian market To be the Clients’ first choice for quality of II professionals , protection and value of Clients’ first choice service as well as state-of-the-art digital presence III To create a new long term growth engine International aspiration by selectively expanding our geographical footprint 10
EMPOWERING FAS KEY PROJECTS 1 I Ongoing innovation in AM solutions (AUM) LUX IM Multi Discretionary Mandate Illiquid Solutions 2 Implementing Advisory Fee Approach (AUA) Empowering FAs Robot for Advisory solutions WM Approach Vehicle for illiquid assets To consolidate our leading position in empowering the best 3 Financial Advisors (FAs) in the Exploiting Assets under Custody (AUC) Italian market Saxo Partnership Primary Market & Certificates 11
ASSETS UNDER MANAGEMENT (AUM) INNOVATION AND PROFITABILITY Overview of LUX-based 1 assets bn/ € Recent managed product launches (AuM 2 ) IN-HOUSE FUNDS BGFML BGFML • I wave (March 2018) & II wave (October 2018) Total assets by by investment • III wave due September 2019 fund classes strategies • Recurring plans 2% 15.6 15.0 15.2 NEW PORTFOLIO MANAGEMENT LINES 14.1 • Family office for HMWI 24% • ESG Lines 34% • Tailor-made bottom-up strategies (Nextam) 9.3 8.7 9.3 8.6 15% 25% INSURANCE • new BG Stile Libero – 50 Plus 6.2 6.3 • Recurring plans 5.9 5.5 Fixed income 2017 2018 1H18 1H19 Equity (DM+EM) Equity (Global+Thematic) Retail fund classes Institutional fund classes Multi-assets GOALS: Nourishing ongoing innovation in core business Enhancing value proposition for private clients % of 54% Others (liquidity, Real assets) 52% 53% 53% Introducing saving plans offer for affluent clients AuM 1 Widening dedicated opportunities for affluent segment 12 NOTE: 1) LUx-based assets referring to the LUX-based management company BG Fund management Luxembourg; 2) Excluding traditional (LOB1) life policies
ASSETS UNDER ADVISORY (AUA) GROWTH AHEAD OF PLAN Assets under Advisory (AuA) breakdown by cluster of New services and tools for each advisory modules service bn/ € PURE FINANCIAL: traditional financial advisory approach on 5.5-6.0 fund/securities supported by new tools: • robo-4-advisory platform through an exclusive partnership with UBS 4.0 • Set-up of a Market Strategy team 0.5 2.3 FAMILY OFFICE: advisory on non-financial wealth (real estate, 2.2 succession planning, corporate finance, art advisory) 1.7 0.4 0.3 • proprietary IT platform (BGPA) 0.5 • real-estate advisory, the most in demand 0.6 • ongoing scouting of innovative digital partnerships 1.8 1.4 1.3 SECURITISATIONS 1H18 2018 1H19 2021E • ongoing launch of securitisation programmes dedicated to professional clients with the support of sector specialists Pure Financial Family office Securitisations GOALS: Upselling for private and HNWI, % of Total Leverage on the unexploited AuC potential 7.0% 3.8% 4.0% 6.5% Increase share of wallet of existing clients Assets 8.0% Increase revenue diversification 13
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