PRESENTATION May2004 1

Transcription

1 PRESENTATION May2004 1

2 THE UNIPOL GROUP INSURANCE BUSINESS BANKING BUSINESS GROUP RESULTS AND TARGETS budget - plan up to

3 HOLMO MPS HOPA Group OWNERSHIP P&V (B) Group JP Morgan (USA) 51% 39% 5% 3% 2% STRATEGIC MEMBERS MARKET Core Shareholder 50.2% of the ordinary shares 32% of the total capital (stable shareholding) 49.8% of the ordinary shares 100 % of the preference shares 68 % of the total capital (Parent Company and Operating Company) 333,943,334 preference shares SHARE CAPITAL as at 16/4/ % 63.6% 577,637,399 ordinary shares 911,580,733 TOTAL NUMBER OF UNIPOL SHARES 3

4 THE UNIPOL GROUP AS AT 31/12/2003 UNIPOL ASSICURAZIONI (Operating Company and Parent Company) INSURANCE SECTOR BANCASSURANCE SECTOR BANKING, MANAGED SAVINGS AND MERCHANT BANKING Company Business activity TRADITIONAL NON-LIFE + LIFE of which UNIPOL BANCA TRADITIONAL NON-LIFE + LIFE TRADITIONAL NON-LIFE + LIFE TELEPHONE AND INTERNET SALES MV. BUSINESS HEALTH TRANSPORT AND TOURISM Premiums in m 2, , ** TOT. PREMIUMS INSUR. SECTOR var.% Non-Life 2,290 2, % Life 911 1, % Total m 3,201 4, % Company Sales network Premiums in Company Business Funds raised m activity in m BAM (MPS GROUP) 887 BNL AND BANCA BNL INVESTIMENTI 2,077 TOT. PREMIUMS BANCASSURANCE (**) Life 2,805 2, % % of tot. premiums 46.7% 39.7% (**) On the same basis, excluding Noricum's premium income for 2002, the rise in premium income from '02 to '03 would be 18%. TOTAL PREMIUMS IN m var. % Non-Life 2,290 2, % Life 3,717 4, % Total 6,006 7, % RETAIL BANK CUSTOMER DEPOSITS 2,228 2,628 CUSTOMER FUNDS 6,979 11,461 of which MANAGED SAVINGS 999 1,174 Assets managed m INVESTMENT FUNDS 529 MERCHANT BANKING AND MEDIUM-TERM LOANS CAP. & RES. 108 ** Premi Winterthur relativi al solo 4 trimestre

5 THE UNIPOL GROUP - BUDGET AS AT 31/12/2004 UNIPOL ASSICURAZIONI (Operating Company and Parent Company) INSURANCE SECTOR BANCASSURANCE SECTOR BANKING, MANAGED SAVINGS AND MERCHANT BANKING Company Activity Premiums in m Company Sales network Premiums in m Company Business activity Funds raised in m TRADITIONAL NON-LIFE + LIFE of which UNIPOL BANCA TRADITIONAL NON-LIFE + LIFE TELEPHONE AND INTERNET SALES MV. BUSINESS 2, , BAM (MPS GROUP) 913 BNL 2,090 TOT. PREMIUM BANCASSURANCE Life 2,965 3, % % of tot. premiums 39.7% 33.0% RETAIL BANK CUSTOMER DEPOSITS 2,628 3,300 CUSTOMER FUNDS 11,461 15,800 of which MANAGED SAVINGS 1,174 1,600 Assets managed m INVESTMENT FUNDS 750 HEALTH TRANSPORT AND TOURISM TOTAL PREMIUMS INSUR. SECTOR var.% Non-Life 2,813 3, % Life 1,686 2, % Total m 4,499 6, % TOTAL PREMIUMS IN m var. % Non-Life 2,813 3, % Life 4,650 5, % Total 7,463 9, % MERCHANT BANKING AND MEDIUM-TERM LOANS CAP. & RES

6 STRATEGY FOR ACQUISITIONS AND GROWTH IN THE INSURANCE SECTOR FOR ACQUISITIONS Company share vendor premiums assets price Acquired acquired m m m PPO on 51,4 % TELECOM 655 1, ,1% MARKET 75 Sub-Total 655 1, % GENERALI ACQUISITIONS Company share vendor premiums assets price Acquired acquired m m m 90% CR.SUISSE 1,931 5,971 1,319 Total invested: 1,319m MERGER = + MERGER MEIE - AURORA 1999 GROUP PREMIUM INCOME 1,812m Sub-Total 1,044 1, ,2% GENERALI % GENERALI 1,107 4, Total premium income: 2,234m Total assets: 6,300m Total invested: 812m 2000 GROUP PREMIUM INCOME 4,291m Highlights of the acquisitions: Total sum invested: 2,131m Total premiums written: 4,165m Total customers acquired: 3,200, GROUP PREMIUM INCOME 7,463m CAGR % 2004 GROUP PREMIUM INCOME 9,095m CAGR % IN 5 YEARS THE GROUP HAS QUINTUPLED IN SIZE 6

7 STRATEGY IN BANKING AND MERCHANT BANKING Start-up project 51 branches acquired from Banca Intesa (price paid: 205m) 12 branches and 17 finance shops opened Start-up project 60 branches acquired from Capitalia (price paid: 165m) 26 branches and 40 finance shops opened Transformation of Unipol Merchant into bank specializing in corporate business (cap. and reserves of 108m) 2004 CUST. DEP. CUST. FUNDS KEY PARAMETERS GROUP m 2,242m BRANCHES: 24 FIN. ADVISERS: m 3,416m BRANCHES : 87 FINANCE SHOPS: 17 FIN. ADVISERS: ,228m 6,979m BRANCHES: 173 FINANCE SHOPS: 57 FIN. ADVISERS: ,628m 11,461m CAGR % BRANCHES: 185 FINANCE SHOPS: 53 FIN. ADVISERS: 425 3,300m 15,800m CAGR % BRANCHES: 242 FINANCE SHOPS: 110 FIN. ADVISERS: 550 CUSTOMER DEPOSITS HAVE INCREASED 9-FOLD IN 5 YEARS AND CUSTOMER FUNDS 7-FOLD 7

8 KEY FIGURES FOR THE UNIPOL GROUP

9 1 st QUARTER 2004: CONSOLIDATED RESULTS 9

10 THE UNIPOL GROUP INSURANCE BUSINESS BANKING BUSINESS GROUP RESULTS AND TARGETS budget - plan up to

11 NON-LIFE AND LIFE UNIPOL GROUP Life 42.7% MV TPL 29.5% Non-MV non-life 22.4% Land vehicles 5.4% Life 62.3% MV TPL 19.8% Land vehicles 3.4% Non-MV non-life 14.5% Life 56.1% MV TPL 23.4% Land vehicles 4.1% Non-MV non-life 16.5% Premium income Non-life: 1,037 Life: 774 Total 1,812 Premium income Non-life: 2,813 Life: 4,651 Total 7,463 Premium income Non-life: 3,996 Life: 5,099 Total 9,095 11

12 RANKING AND SHARE OF ITALIAN MARKET COMPOSITE INSURANCE GROUPS (NON-LIFE+LIFE) Sources: Market: ANIA and ISVAP 2003 Figures: ANIA and Press Releases * 03 and 04 internal forecasts (#) consolidated pro-forma premiums (including premiums written by the Winterthur Italia Group for the whole of 2003) of 8,853m (market share 9.1%). 12

13 UNIPOL GROUP S POLES: BOLOGNA-MILAN 8,400 terminals linked on-line using broadband with the centralized system 13

14 INSURANCE DISTRIBUTION STRUCTURE OF UNIPOL AND AURORA GEOGRAPHICAL SPREAD OF PREMIUM INCOME + 1, % 2, % 3, % % % 1, % % 17.4% 17.5% 2003 PREMIUMS: 2, PREMIUMS: 3, PREMIUMS: 5,568 AGENCIES: 573 AGENCIES: 1,302 AGENCIES: 1,875 SALES OUTLETS:1,700 SALES OUTLETS: 2,481 SALES OUTLETS: 4,181 GROUP CUSTOMERS: 6,300,000 14

15 THE BANKING AND BANCASSUR. DISTRIBUTION NETWORK BANKING NETWORK BANCASSURANCE NETWORK BAM ( MPS GROUP) BNL (BNL GROUP) % % % % % BRANCHES: 191 FINANCE SHOPS: 53 FINANCIAL ADVISERS: % BRANCHES:

16 GROUP OPERATIONAL EFFICIENCY IN NON-LIFE BUSINESS: THE COMBINED RATIO -DIRECT BUSINESS Market Listed Groups + Toro 2000 After acquisit. Meie Aurora Navale 120% 100% 80% 60% 40% 20% 0% 99.3% 20.7% 78.6% 112.8% 22.4% 105.8% 105.3% 105.8% 108.4% 20.6% 21.4% 23.1% 23.0% 90.4% 85.2% 83.9% 82.7% 85.4% % 100% 80% 60% 40% 20% 92.4% 95.6% 91.7% 95.5% 93.2% 21.4% 22.3% 23.7% 16.6% 21.4% 71.0% 73.3% 68.0% 78.9% 71.8% 97.4%* 97.8%* 22.6% 22.0% 74.8% 75.8% 0% Operat. expenses/prem.income Claims/premium income *market and competitor data for 2002 The Group combined ratio has fallen by 12 points in 3 years 16

17 Life premium income ( m) 774 GROUP LIFE PREMIUM INCOME 1, % % 2, % 3, % 4, % 5,099 CAGR 45.79% Budget 2004 Life technical provisions ( m) 3,270 9, % +19.9% 10, % 13, % 19, % 21,200 CAGR 45.33% Budget Position in the 'total life' market Total life' market share 2.2% 3.0% 6.0% 6.7% 7.5% 7.6% Source: Internal calculations based on details of premium income provided by ISVAP and ANIA New Business ,200m New Business ,580m (budget) Value of Life business (2002 figures) In Force Value 382m Embedded Value 805m Value of New Business 60.3m 2003 figures not yet finalized 17

18 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, TRENDS IN NEW LIFE BUSINESS UNIPOL GROUP 928 2,288 3,229 4, % 28% 19% 12% 47% 59% 52% 16% 32% 78% 15% 7% Traditional Index-linked Unit-linked 18

19 AGGREGATE - GROUP INVESTMENTS (2003) Loans and deposits with ceding undertakings 0.5% Land and buildings 2.5% Available cash 5.4% Holdings in subsidiaries 13.0% Strategic holdings 3.6% Shares 2.0% Bonds 72.4% GROUP INVESTMENTS INVEST. ON BEHALF OF POLICY HOLDERS HOLDERS bn 5.6bn 28.8bn TOTAL INVESTMENTS 28.8 Shares in investment funds 0.5% Note: The percentages shown in the diagram are based on Group investments 19

20 GROUP REORGANIZATION AND CORPORATE RATIONALIZATION ACTIONS Cost savings Increased specialization (and knowledge-sharing) Investment synergies Customer synergies (cross-selling) TARGET Improvement in Group profitability (ROE 11.5% by 2006) 20

21 GROUP REORGANIZATION: FUNCTIONS CARRIED OUT BY UNIPOL SPA AS PARENT COMPANY CENTRALIZED GROUP FUNCTIONS: IT systems Claims handling Finance Management of land & buildings Procurement Control of Life products GROUP COORDINATION FUNCTIONS: Sales network planning Human resources policy Administration and accounts Budget and management control Internal audit 21

22 CORPORATE RATIONALIZATION: THE MEIE AURORA MERGER MEIE + AURORA IN 2000 PREMIUM INCOME: 1,044m (649 Meie Aurora) LIFE AS % OF TOTAL: 23.4% COMBINED RATIO: 112.8% TECH. ACCOUNT NON-LIFE+LIFE:- 18.4m NET PROFIT: m STRATEGY Corporate reorganization (merger between Meie Group and Aurora) IT migration to Unipol system Centralization of Finance, Property Management and Procurement functions into Unipol Streamlining the portfolio and rationalization of the sales network (reduced from 718 agencies in 2000 to 502 at the end of 2003) Centralization of claims handling at GROUP level MEIEAURORA IN 2003 PREMIUM INCOME: 1,238m LIFE AS % OF TOTAL: 34.3% COMBINED RATIO: 95.6% TECH. ACCOUNT NON-LIFE+LIFE: 43.5m (+67% compared with 2002) NET PROFIT: 38.3m (+26.9% compared with 2002) 22

23 CORPORATE RATIONALIZATION: THE MEIEAURORA- WINTERTHUR MERGER PREMIUM INCOME AURORA is born: the focus of UNIPOL GROUP s insurance business in Milan N.B: The technical procedures for the merger will enable a significant amount of funds invested to be recouped, estimated at ~ 100m 23

24 THE MEIEAURORA- WINTERTHUR ITALIA MERGER: OBJECTIVES FOR Actions: Integration of sales networks Extension of Parent Company IT systems Centralization of: claims handling asset management procurement activities Goal by 2006: to obtain COST SYNERGIES OF: 100m Cross selling in order to develop insurance products for every individual client Cross selling Aurora / Unipol Banca Goal by 2006: to obtain REVENUE SYNERGIES OF: 40m 24

25 UNIPOL ASSICURAZIONI AND AURORA: COMPARISON OF MANAGEMENT INDICATORS 2003 OBJECTIVE 2006: TO STANDARDIZE THE LEVELS OF EFFICIENCY OF UNIPOL ASSICURAZIONI AND AURORA 25

26 THE UNIPOL GROUP INSURANCE BUSINESS BANKING BUSINESS GROUP RESULTS AND TARGETS - budget plan up to

27 THE UNIPOL BANCA BANKING GROUP Part of the Unipol Group since 1999 Operating in all aspects of banking, asset management, medium-term loans and merchant banking Has developed into an extremely innovative type of bank 82.86% COOP ESTENSE 7.14% 10% 100 % 100 % 100 % FIDUCIARIA Acquisition underway 50.5 % (as at 31/12/03: 53.5 %) 49.5 % OTHER 27

28 UNIPOL BANCA: KEY FIGURES No. OF CUSTOMERS No. OF BRANCHES No. OF FINANCE SHOPS No. OF FIN. ADVISERS No. OF EMPLOYEES Figures in m CUSTOMER DEPOSITS LOANS AND ADVANCES TO CUSTOMERS , ,136 2,228 1,646 6, % % , ,180 2, % 1, % 11, % CUSTOMER FUNDS +11.2% managed % 1, % administered 5, % 10, % Budget , ,429 ~3, % ~2, % ~15, % ~1, % ~14, % N.B.: The opening of new branches is subject to obtaining the necessary authorization of Banca d Italia 28

29 UNIPOL BANCA: TYPES OF RECEIVABLES AND COST/INCOME 29

30 UNIPOL BANCA: TREND IN PROFITABILITY % % CAGR % % % 5.0 m m PROFIT % % % +72.7% EBITDA CAGR % 30

31 A UNIPOL BANCA: THE DISTRIBUTION MODELS MAXIMIZING CROSS SELLING FROM INSURANCE CLIENTS AGENCY WITH FINANCE SHOP BRANCH WITH AGENCY ATTACHED (COMPLETE SERVICE TO THE CLIENT) FINANCE SHOP INSURANCE AGENCY BANK BRANCH INSURANCE AGENCY Financial Advisers Financial advisers Advice service Banking ops Advice service 81 AS AT 31/12/2003 B INSURANCE AGENCY TRADITIONAL BRANCH (FOCUS FOR THE AGENCIES) INSURANCE AGENCY / BRANCH INSURANCE AGENCY INSURANCE AGENCY INSURANCE AGENCY 31

32 UNIPOL MERCHANT BANCA PER LE IMPRESE KEY FIGURES 2003 CAPITAL & RESERVES 108.4m NET PROFIT 2.0m No. ADVISORY ASSIGNMENTS: 58 STAFF: 40 EMPLOYEES The current name was adopted when authorization to carry out banking services was obtained from the Banca d Italia in September Unipol Merchant operates in synergy with Unipol Banca and is thus able to specialize in the corporate sector. The experience and knowledge it acquired during its years of operating in the fields of consultancy, company restructuring and merchant banking now enable it to offer businesses the additional service of medium- and long-term financing. The fact that it belongs to one of the major insurance-banking groups in Italy enables it to take advantage of client synergies, which is of particular importance if account is taken of the around 15,000 corporate customers that have taken out bond policies with the Group. It operates throughout Italy through Unipol Banca s network of branches (190 branches in March 2004) and its own offices (Milan, Rome and Brescia), offering a full range of products and services to meet to the varied requirements of corporate customers. Captive activity (in particular targeted towards SMEs) in a sector that up to now has not yet been sufficiently considered by competitors. 32

33 UNIPOL MERCHANT BANCA PER LE IMPRESE Principal operations in 2003 Co-lead manager for the initial public offer of Adviser and co-lead manager for the initial public offer of Sponsor and adviser for the initial public offer of Financial advisor for the acquisition, by Unipol, of I G D Co-arranger in the placement of the subordinated notes of Consultant and adviser to: AGAC, CAMST, COOP ADRIATICA, UNIPOL BANCA, HOPA, ORION, SALERNO INTERPORTO, THE PORT OF LIVORNO 33

34 UNIPOL BANCA: PLAN TARGETS BY 2006 No. OF CURRENT ACCOUNTS No. OF BRANCHES No. OF FINANCE SHOPS No. OF FINANCIAL ADVISERS Figures in m CUSTOMER DEPOSITS GROSS OPERATING INCOME 2003 MANAGED SAVINGS 1,174 LOANS AND ADVANCES TO CUSTOMERS 125, < > ~ 800 2,628 6, (PLAN*) ~ 310,000 3,700 1,946 5, * Plan figures by 2006 were presented to the Banca d Italia in February 2004 within the multi-year development plan. 34

35 THE UNIPOL GROUP THE INSURANCE SECTOR THE BANKING SECTOR GROUP RESULTS AND TARGETS - budget plan up to

36 UNIPOL GROUP m TREND IN UNIPOL SPA AND GROUP PROFITS % CAGR: % 40.4% % +14% +44% PROFIT UNIPOL SPA m % % % % +52% PROFIT CAGR: 36.0% N.B.: Unipol SpA s profit for 2004 is expected to improve despite not benefiting from the majority (~ 46.5m) of the dividends distributed by Winterthur Assicurazioni, which in accordance with accounting principles will be deducted from the acquisition price paid. 36

37 Amounts in m PROFITS OF SUBSIDIARIES: (balance) Unipol Meieaurora Winterthur Italia Non-Life Specialists companies Bancass. companies Banking sector companies Other companies Aggregate profits Group net profit before amortization Consolidated Group net profit NET WORTH: 2,494m* ROE 2003: 8.4% GROUP COMPANIES PROFITS 2003 Key Pro forma figures incl. Winterthur for 12 months * 2,600m if account is taken of the conversion of the warrants still in circulation Figures incl. Winterthur only in the 4 th quarter 37

38 PROFIT INDICATORS FOR THE PRINCIPAL COMPANIES IN THE GROUP In the case of Winterthur (NL+L) the ROI has been calculated by scaling it up as if it covered the entire year. (1) ROI = Net result per share / Investment average value of Unipol Ass. 38

39 Operations: UNIPOL ASS.NI: TREND IN SOURCES OF FUNDS Capital increase by issuing shares for 421m and bonds for 210.5m 1, , Issue of subordinated callable notes (hybrid capital) for 300m 1, , Conversion of warrants for 163m and redemption of bonds for 210.5m 1, , Capital increase of 1,054m and issue of subordinated callable notes (hybrid capital) for 300m 3, ,530 By 2005 shareholders equity is expected to have risen by 107.2m as a result of the conversion of the warrants in circulation +368% Var.% sources of equity % Var.% shareholders equity FIGURES IN m SUBORDINATED CALLABLE NOTES BONDED LOAN SHAREHOLDERS EQUITY /2005 DEBT RATIO 16% 30% 18% 19% falling 39

40 UNIPOL GROUP: PLAN TARGETS BY (BUDGET) (PLAN) PREMIUM INCOME ( M) 7.4 >9 > 10 % LIFE BUSINESS 62% 56% 55% % NON-LIFE BUSINESS 38% 44% 45% BANCASS. AS A % OF TOTAL PREMIUM INCOME 40% 33% < 32.0% COMBINED GROUP RATIO 93.2% 93.2% 93% GROUP ROE (excluding goodwill) 10.5% >14% NET ROE 8.4% ~ 11.5% 40

41 WARNING THIS PRESENTATION CONTAINS INFORMATION RELATING TO FORECASTS OF FIGURES, RESULTS AND EVENTS THAT REFLECT THE CURRENT OUTLOOK, BUT THESE COULD DIFFER FROM WHAT ACTUALLY HAPPENS OWING TO EVENTS, RISKS AND MARKET FACTORS THAT IT IS CURRENTLY IMPOSSIBLE EITHER TO KNOW OR TO PREDICT. 41