Net Profit 10-year CAGR. June 7-9, 2006 CAGR 17% Group Domestic market Foreign markets Goodwill amortisation & interest paid on investments

Transcription

1 June 7-9, 2006 Net Profit 10-year CAGR 10-years of Growth * mn CAGR 17% Group Domestic market Foreign markets * IAS/IFRS Goodwill amortisation & interest paid on investments 1

2 Dividend Payout 10-year CAGR 10-years of Growth 56% 57% 60% 55% 88% 70% 62% 72% 62% 233 mn CAGR 21% Dividend Payout Net Profit retained Payout ratio Share Price 10-year CAGR & still at a Discount CAGR 13% /06/96 03/09/96 03/12/96 03/03/97 03/06/97 03/09/97 03/12/97 03/03/98 03/06/98 03/09/98 03/12/98 03/03/99 03/06/99 03/09/99 03/12/99 03/03/00 03/06/00 03/09/00 03/12/00 03/03/01 03/06/01 03/09/01 03/12/01 03/03/02 03/06/02 03/09/02 03/12/02 03/03/03 03/06/03 03/09/03 03/12/03 03/03/04 03/06/04 03/09/04 03/12/04 03/03/05 03/06/05 03/09/05 03/12/05 03/03/06 2

3 Embedded Value 10-year CAGR 10-years of Growth mn 2,951 VIF CAGR 19% 2,354 Adjusted shareholders equity 2,029 1,768 1,816 1,283 1,496 2, EEV* * including Spain & banking business AUA 10-year CAGR bn 10-years of Growth 30.4 Foreign markets Domestic market CAGR 19%

4 The Business we are in & still at a Discount A major concern: the asset gathering business is volatile as it is too tied to the equity market The keystone to manage this reality: to grow much more than in the past & as rapidly as possible Growth or decline induced by the market becomes a minor element of our performance Our growth strategy: Modify how we are perceived Our growth Strategy Our strategy: to develop into one of the largest retail banks in Italy, clearly being perceived as a full status bank rather than a pure asset gatherer We are not negating our mission of gathering assets Rather, as a full status bank we are in the strategic position to accelerate the acquiring of assets 4

5 Rationale of our strategy (1) Our growth Strategy Banks are where people prefer to entrust their savings People identify with their bank as the one where they keep their current account Retail banks are our true competitors & hold 94% of Italian household assets Rationale of our strategy (2) Our growth Strategy Bank customers who use our bank account as their primary one give us 4 to 6 times more assets than non-bank customers as at March 31, 2006 Avg. AUA Cross-Selling* Non-bank customers 14, Bank customers 47, Bank customers/active users** 57, Non-bank customers > age 55 20, Bank customers/active users > age , * out of 12 products; bank accounts, credit cards, stock portfolio, mutual funds, managed accounts, index-linked policies, pension plans, other life products, non-life products, home mortgages, direct channels (0-2) ** 12 non-automatic transactions/operations per quarter 5

6 Asset gathering: Change in approach Our growth Strategy Dawn of an entirely new era for our sector New industry developments with far-reaching ramifications A big transformation is occurring in the way we approach asset gathering No longer possible to run our business as we did even 5 years ago, selling managed savings products to investors who are nevertheless customers of other banks We have the bank: so all profits stay with us Traditional banks & asset growth Our growth Strategy People invest their money where they have a bank account, with assets often distributed among more than one bank Traditional banks can do very little to address this tendency, if they want to increase customers & assets Banks are usually chosen on the basis of branch location Their only option is to reproduce proximity to the customer by opening new branches 6

7 Technology s effect on bank customers Our growth Strategy There is a growing frustration towards the traditional structure of branches tightly linked to time & place The consumers use of technology in everyday life is accelerating rapidly Customers are starting to demand freedom in the full use of banking services Mediolanum offers Freedom in Banking Our growth Strategy The Mediolanum model invalidates the concept of proximity With our bank total proximity is always on Freedom in Banking 7

8 High-tech, High-touch Our growth Strategy Customer Tele-text sms Telephone Internet Low-added value transactions High-added value transactions Customer Contact Center Customer Service 15,000 branches with agreements for cash logistics One to one customer meeting Advisor Real time customer portfolio alerts Drivers of our strategy New customer acquisition via the bank account, with aggressive pricing Development of the customer via cross selling, where we have unparalleled skill 8

9 4 Freedoms project Objective: significantly increase bank customers via opening of bank accounts New competitive product: Riflex account & Riflex card Clear promise: simplicity, full transparency & great convenience at no cost. No asterisks Memorable & convincing Advertising Campaign, run on all media Thousands of Collective Sales Efforts Promotional Events at a grass-root level held in towns all over Italy New bank accounts trend all account types, excluding conversions Mar. 7, ,883 11,962 8,373 8,851 8,469 7,198 7,280 7,014 2,690 3,290 5,083 4,491 3,587 2,897 5,422 4,862 4,527 4,496 3,574 2,494 3,255 5,570 5,679 6,968 4,334 5,185 6,813 99,000* in 13 months, monthly avg. 7,900 (excl. Aug.) +96% jan-04 mar-04 may-04 july-04 sept-04 nov-04 jan-05 mar-05 may-05 july-05 sept-05 nov-05 jan-06 mar-06 * 56% are opened by new customers 9

10 New bank accounts opened* monthly average Q1 06 9,100 61% are opened by new customers Mar 05-Dec 05 (excl. August) 7,500 52% are opened by new customers +21% * All account types, excluding conversions Net increase in bank accounts Mar 31, ,700 Mar 7, , ,700 10

11 Riflex accounts opened including conversions 11, ,900 in 13 months, o/w 44,600 conversions 11,832 10,195 10,237 9,120 9,097 7,117 8,741 7,462 8,617 4,014 4,648 5,426 mar-05 apr-05 may-05 june-05 july-05 aug-05 sept-05 oct-05 nov-05 dec-05 jan-06 feb-06 mar-06 New Riflex accounts opened Conversions Credit cards issued trend Mar. 7, ,184 7,424 4,610 4,457 4,519 4,908 4,449 1,115 2,153 1,114 2,515 1,472 1, , , ,302 2,288 3,349 4,095 jan-04 mar-04 may-04 july-04 sept-04 nov-04 jan-05 mar-05 may-05 july-05 sept-05 nov-05 jan-06 mar-06 51,600* in 13 months, monthly avg. 4,100 (excl. Aug.) +244 % * 82% are issued to new customers, or existing customers with no previous credit card 11

12 New bank customers trend Mar. 7, ,519 10,378 8,505 2,067 2,570 2,824 3,688 2,240 4,226 3,978 3,765 2,966 3,839 2,067 4,588 2,742 4,728 6,127 4,863 7,216 5,982 6,244 3,704 4,937 6,707 6,531 90,900 in 13 months, monthly avg. 7,300 (excl. Aug.) +120% 8,129 jan-04 mar-04 may-04 july-04 sept-04 nov-04 jan-05 mar-05 may-05 july-05 sept-05 nov-05 jan-06 mar-06 New bank customers monthly average Q1 06 8,700 Mar 05-Dec 05 (excl. August) 6, % 12

13 Direct channels use figures in 000 Accesses Mar 05-Feb 06 14,900 Mar 04-Feb 05 11, % Transactions Mar 05-Feb 06 2,000 Mar 04-Feb 05 1, % Growth & momentum project is a definite success We expect to see a further acceleration of positive results We ll continue to invest in media coverage, with emphasis on internet advertising & on collective sales events To maintain the momentum we ve created 13

14 Increase in Assets New Bank Customers acquired in May 05 avg. 31/03/06 31/05/05 Change Total no. customers: 3,304 Bank account 5,635 5,384 +5% Securities 1, % Managed savings products 13,118 2, % Total assets per customer 20,686 8, % Active no. customers*: 1,444 Bank account 7,889 4, % Securities 2, % Managed savings products 11, % Total assets per customers 21,587 5, % Non-active no. customers*: 1,860 Bank account 3,886 6,013-35% Securities 1,820 1, % Managed savings products 14,281 2, % Total assets per customer 19,987 10, % * in the period Jan 06 - Mar 06 Impact on business Gross inflows mn Q1 06 1,486 Q1 05 1, % 14

15 Impact on business Network growth: no. of advisors Mar 31, ,465 Mar 31, , Sales Network Trend 5,585 5,181 5,220 5,015 5,002 4,857 1, , ,163 3,718 3,192 3,056 2,954 1,205 2,595 2,528 2, ,199 1,010 1, ,114 4, ,842 4,048 3,978 3,018 2,513 2,046 2,200 1,9 15 1,58 1 1,6 59 1,828 1,885 5,465 4,796 1, ,015 3, Q1 05 Q1 06 Licensed Non-licensed 15

16 An appealing strategic opportunity Model & Growth a very demanding objective: to accelerate our already fast growth via the creation of a large bank Capable of responding to the demands of today & tomorrow s customers, who look for freedom from operational constraints & excessive pricing An instrument to facilitate & foster the gathering of assets The Mediolanum model Model & Growth Our model is set to be the killer application of the banking sector Our growth in the banking business will result in a great leap in our assets 16

17 Our attributes for growth We believe we possess the attributes & the determination required to achieve our goal of becoming a large bank Consistent execution We excel at execution. Our skill base is to do a lot of little, right things Model & Growth Constant learning We need good crisis management & expertise in learning. Our effort is to never make the same mistake twice High flexibility We use our intellectual assets to act quickly to exploit competitive opportunities & capitalise on our strenghts Special motivation Regardless of age, our people are the type to believe in a cause, not just collect a pay check. Disclaimer This document has been prepared by Mediolanum S.p.A. for the sole purpose of providing information and presenting the Group s strategies. The information, opinions, valuations and forecasts it contains have not been audited by any independent body; they may be altered at any time without notice. No guarantee, express or implicit, is given by Mediolanum S.p.A. or by any of the Mediolanum Group companies as to the reliability, completeness or accuracy of the information or opinions in the present document. Publication, communication to others, and reproduction of all or any of this document s contents are forbidden, except with the express written consent of Mediolanum S.p.A. Neither Mediolanum S.p.A., nor the companies belonging to the Mediolanum Group, nor their representatives, managers or employees accept liability for any losses directly or indirectly resulting in any manner whatsoever from use of the present document or of information in any way attributable thereto. Forecasts in this document has been prepared with the greatest care, but is nevertheless based on assumptions which could prove wrong because of risk factors outside the control of Mediolanum S.p.A. and the Mediolanum Group companies. There is no guarantee that present forecasts will match future performance. This document is not a recommendation to invest in any financial instrument, nor an invitation to subscribe or purchase shares, nor is any part thereof intended to serve as a basis or reference source for any contract or undertaking whatsoever on the part of Mediolanum S.p.A. or any of the companies belonging to the Mediolanum Group. Receipt of this document implies acceptance of its limitations as described above. 17

18 Investor Relations Contacts Alessandra Lanzone tel.: Maurizio Belò tel.: Lisa Maxon tel.: Nicoletta Russo tel.: