PRESS RELEASE THE MEDIOLANUM GROUP Q1 2007 Results PROFIT BEFORE TAX: 80 million euro, +7% NET INCOME: 61 million euro, +4% ASSETS UNDER ADMINISTRATION: 34 billion euro, +9% GROSS INFLOWS: 2,574 million euro, +30% NET INFLOWS: 645 million euro, +23% SURPASSED 1 MILLION CUSTOMERS The Board of Directors of Mediolanum S.p.A. met today in Basiglio (MI) and approved the Consolidated Financial Statements for the first quarter of 2007. With reference to the GROUP RESULTS, we would like to highlight in particular: Net Income was at 61 million euro, a growth of 4% compared to the same period last year. Profit before tax was at 80 million euro, an increase of 7%. It should be noted that results for the first quarter of 2006 were characterised by very strong performance fees, which during the first quarter of 2007, due to the trend in the stock and ForEx markets, were 41% lower. Net of performance fees, Profit before Tax thus increased by 30% compared to the same period last year. Assets under Administration, grew by 9% with respect to March 31, 2006 totalling 34,193 million euro. Inflows registered a strong increase with respect to the same period last year. In particular, Gross Inflows came in at 2,574 million euro, increasing by 30%, while Net Inflows were positive at 645 million euro, a growth of 23%. With reference to the DOMESTIC MARKET (Net Income and Assets include Banca Esperia for the 48.5% share pertaining to the Group), the following results were achieved: Net Income was at 59 million euro, flat with respect to the same period last year. Assets under Administration grew 9% with respect to March 31, 2006, totalling 30,847 million euro. Moreover, excluding Banca Esperia: Gross Premiums Written in total came to 864 million euro, +34% with respect to the same period last year. Life New Business jumped 49% to 584 million euro, with Recurring Premiums dropping 42% to 36 million euro, and Single Premiums increasing by 66%, to 547 million euro. The drop in
Recurring Premiums is a result of the preclusion to distribute the new individual pension products not yet authorized by COVIP. Asset Management registered Gross Inflows of 749 million euro, with an decrease of 24% compared to the previous year. Net Inflows were positive at 420 million euro, an increase of 43%. In particular, Life Net Inflows, grew by 41% to 377 million euro. As at March 31, 2007, there were 1,010 individuals in the Sales Network of Banca Mediolanum, up 18%, totalling 6,475 Family Bankers, of whom 4,036 are licensed advisors. As at March 31, 2007, there was a total of 1,006,500 customers. There were a total of 480,000 bank accounts at March 31, 2007, an increase of 71,000 accounts with respect to March 31, 2006, +17%. Highlights in particular with respect to Banca Esperia: Net Income was at 7.2 million euro (3.5 million euro for Mediolanum s share), an increase of 79%. Assets under Administration grew 25% compared to March 31, 2006, reaching 7,571 million euro (3,672 million euro for Mediolanum s share). With reference to the FOREIGN MARKETS: The net economic result was positive passing from breakeven at the first quarter last year to a Net Income of 1.9 million euro. The business in Spain, through Fibanc-Mediolanum, registered a growth in Consolidated Net Profit, passing from 1.5 million euro to 2.3 million euro. Assets under Administration grew by 9% with respect to March 31, 2006, totalling 3,346 million euro. The Board of Directors have also appointed Luigi Del Fabbro, currently General Manager and CFO of the Mediolanum Group, as the officer in charge of preparing the corporate financial statements and reports of Mediolanum S.p.A.. In an effort to provide more complete disclosure about the results as at March 31, 2007, we have attached the Segment Report for the quarter detailing the economic data, reclassified to reflect the criteria used by the Mediolanum Group. A presentation in English with the data contained in this document will be available at the Borsa Italiana S.p.A.. The Quarterly Report as at March 31, 2007, will be available at the company s Registered Office in Basiglio - Milano 3, Palazzo Meucci - Via F. Sforza, on the website www.mediolanum.com and at the Borsa Italiana S.p.A..
Attachments: Consolidated Balance Sheet as at March 31, 2007 Consolidated Income Statement as at March 31, 2007 Consolidated Segment Report Basiglio, Milano 3 City, May 10, 2007 Contacts: Media Relations Investor Relations Roberto Scippa Alessandra Lanzone Tel: +39 02 9049 2902 Tel: +39 02 9049 2039 Fax: +39 02 9049 2345 e-mail: investor.relations@mediolanum.it e-mail: gmmedia@mediolanum.it
Balance sheet ASSETS in thousands of euro 31/03/2007 31/12/2006 1 INTANGIBLE ASSETS 1.1 GOODWILL 162.414 162.414 1.2 OTHER INTANGIBLE ASSETS 15.647 19.250 TOTAL INTANGIBLE ASSETS 178.061 181.664 2 TANGIBLE ASSETS 2.1 PROPERTY 57.396 57.680 2.2 OTHER TANGIBLE ASSETS 16.889 17.129 TOTAL TANGIBLE ASSETS 74.285 74.809 3 REINSURERS' SHARE OF TECHNICAL RESERVES 101.618 103.176 4 INVESTMENTS 4.1 INVESTMENT PROPERTY 5.097 6.967 4.2 INVESTMENTS IN SUDSIDIARIES, ASSOCIATES AND JVs 43.044 39.326 4.3 HELD TO MATURITY INVESTMENTS 604.473 567.544 4.4 LOANS AND RECEIVABLES 4.297.478 3.311.552 4.5 AVAILABLE FOR SALE FINANCIAL ASSETS 955.157 959.715 4.6 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS 16.180.989 15.233.135 TOTAL INVESTMENTS 22.086.238 20.118.239 5 RECEIVABLES 5.1 ARISING OUT OF DIRECT INSURANCE BUSINESS 12.088 13.806 5.2 ARISING OUT OF REINSURANCE BUSINESS 379 5.3 OTHER RECEIVABLES 1.489 1.214 TOTAL RECEIVABLES 13.956 15.020 6 OTHER ASSETS 6.1 NON CURRENT ASSETS OR ASSETS OF DISPOSAL GROUPS, HELD FOR SALE 1.232 1.434 6.2 DEFERRED ACQUISITION COSTS 6.3 DEFERRED TAX ASSETS 40.960 45.181 6.4 CURRENT TAX ASSETS 146.185 145.174 6.5 OTHER ASSETS 240.997 192.153 TOTAL OTHER ASSETS 429.373 383.942 7 CASH AND CASH EQUIVALENTS 214.827 439.027 TOTAL ASSETS 23.098.358 21.315.877
LIABILITIES in thousands of euro 31/03/2007 31/12/2006 1 SHAREHOLDERS' EQUITY 1.1 GROUP SHAREHOLDERS' EQUITY 1.1.1 SHARE CAPITAL 72.884 72.884 1.1.2 OTHER EQUITY INSTRUMENTS 1.1.3 CAPITAL RESERVES 52.603 52.561 1.1.4 RETAINED EARNINGS AND OTHER EQUITY RESERVES 664.188 439.761 1.1.5 (TREASURY SHARES) (2.045) (2.045) 1.1.6 EXCHANGE DIFFERENCE RESERVES 1.1.7 GAINS OR LOSSES ON AVAILABLE FOR SALE FINANCIAL ASSETS 99.334 117.465 1.1.8 OTHER GAINS OR LOSSES RECOGNISED DIRECTLY IN EQUITY 1.1.9 PROFIT (LOSS) FOR THE YEAR ATTRIBUTABLE TO THE GROUP 61.078 223.678 TOTAL CAPITAL AND RESERVES ATTRIBUTABLE TO THE GROUP 948.042 904.304 1.2 ATTRIBUTABLE TO MINORITY INTEREST 1.2.1 CAPITAL AND RESERVES ATTRIBUTABLE TO MINORITY INTERESTS 1.2.2 GAINS (LOSSES) RECOGNISED DIRECTLY IN EQUITY 1.2.3 NET PROFIT (LOSS) FOR THE YEAR ATTRIBUTABLE TO MINORITY INTERESTS TOTAL CAPITAL AND RESERVES ATTRIBUTABLE TO MINORITY INTEREST TOTAL SHAREHOLDERS' EQUITY 948.042 904.304 2 PROVISIONS 70.469 67.503 3 TECHNICAL RESERVES 13.707.611 13.306.917 4 FINANCIAL LIABILITIES 4,1 FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS 1.911.755 1.100.993 4.2 OTHER FINANCIAL LIABILITIES 6.025.235 5.489.253 TOTAL FINANCIAL LIABILITIES 7.936.990 6.590.246 5 PAYABLES 5.1 ARISING OUT OF DIRECT INSURANCE BUSINESS 11.609 13.489 5.2 ARISING OUT OF REINSURANCE BUSINESS 127 1.663 5.3 OTHER PAYABLES 202.267 247.219 TOTAL PAYABLES 214.003 262.371 6 OTHER LIABILITIES 6.1 LIABILITIES OF DISPOSAL GROUPS HELD FOR SALE 6.2 DEFERRED TAX LIABILITIES 18.096 19.630 6.3 CURRENT TAX LIABILITIES 57.132 40.546 6.4 OTHER LIABILITIES 146.015 124.360 TOTAL OTHER LIABILITIES 221.243 184.536 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 23.098.358 21.315.877
Income statement in thousands of euro 31/03/2007 31/03/2006 1 REVENUES 1.1 NET PREMIUMS WRITTEN 1.1.1 GROSS PREMIUM WRITTEN 914.055 680.459 1.1.2 REINSURANCE PREMIUMS (1.152) (1.633) NET PREMIUMS WRITTEN 912.903 678.826 1.2 COMMISSION INCOME 144.491 155.135 1.3 NET INCOME ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT AND LOSS 20.580 209.208 1.4 INCOME ON INVESTMENTS IN SUDSIDIARIES, ASSOCIATES AND JVs 3.719 1.527 1.5 INCOME ON OTHER FINANCIAL INSTRUMENTS AND INVESTMENT PROPERTY 1.5.1 INTEREST INCOME 51.320 34.221 1.5.2 OTHER INCOME 895 3.744 1.5.3 REALISED GAINS 2.750 99 1.5.4 UNREALISED GAINS 1.822 1.473 TOTAL INCOME ON OTHER FINANCIAL INSTRUMENTS AND INVESTMENT PROPERTY 56.787 39.537 1.6 OTHER REVENUES 6.966 6.096 TOTAL REVENUES 1.145.446 1.090.329 2 COSTS 2.1 NET CLAIMS AND BENEFITS 2.1.1 AMOUNTS PAID AND CHANGE IN TECHNICAL RESERVES (865.849) (840.261) 2.1.2 REINSURERS' SHARE/RECOVERIES FROM REINSURERS 1.365 1.988 NET CLAIMS AND BENEFITS (864.484) (838.273) 2.2 COMMISSION EXPENSE (51.573) (54.296) 2.3 LOSS ON OTHER INVESTMENTS IN SUBSIDIARIES, ASSOCIATS AND JVs 2.4 LOSS ON OTHER FINANCIAL INSTRUMENTS AND INVESTMENT PROPERTY 2.4.1 INTEREST EXPENSE (30.553) (18.585) 2.4.2 OTHER EXPENSES (94) (177) 2.4.3 REALISED LOSSES (118) (17) 2.4.4 UNREALISED LOSSES (1.857) (1.818) LOSS ON OTHER FINANCIAL INSTRUMENTS AND INVESTMENT PROPERTY (32.622) (20.597) 2.5 OPERATING EXPENSES 2.5.1 AGENTS' COMMISSIONS AND OTHER ACQUISITION COSTS (29.616) (32.911) 2.5.2 INVESTMENT MANAGEMENT COSTS/EXPENSES (93) (187) 2.5.3 OTHER ADMINISTRATIVE EXPENSE (70.159) (55.702) TOTAL OPERATING EXPENSES (99.868) (88.800) 2.6 OTHER COSTS (16.252) (12.450) TOTAL COSTS (1.064.799) (1.014.416) PROFIT (LOSS) BEFORE TAX FOR THE PERIOD 80.647 75.913 3 INCOME TAX (19.365) (16.465) PROFIT(LOSS) FOR THE PERIOD 61.282 59.448 4 PROFIT (LOSS) FROM DISCOUNTINUED OPERATIONS (204) (481) GROUP NET PROFIT (LOSS) FOR THE PERIOD 61.078 58.967
PROFIT & LOSS AS AT MARCH 31, 2007 SEGMENT REPORTING BY BUSINESS SECTOR LIFE INSURANCE ASSET MANAGEMENT BANKING OTHER CONSOLIDATION ADJUSTMENTS TOTAL Euro/000 Net premiums written Entry fees Management fees Performance fees Banking service fees Other fees Total commission income Interest income and similar income Interest expense and similar charges Net income on investments at fair value Net financial income Net income on other investments Other revenues Total revenues 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta 912.902 678.825 234.077 0 0 0 0 0 0 0 0 0 0 0 0 912.902 678.825 234.077 0 0 0 14.446 22.512 (8.066) 0 0 0 0 0 0 0 0 0 14.446 22.512 (8.066) 41.296 34.122 7.174 42.203 43.582 (1.379) 0 0 0 0 0 0 0 0 0 83.499 77.704 5.795 7.724 10.815 (3.091) 6.864 13.966 (7.102) 0 0 0 0 0 0 0 0 0 14.588 24.781 (10.193) 0 0 0 311 87 224 19.572 19.078 494 0 0 0 (286) (359) 73 19.597 18.806 791 5.571 5.205 366 5.957 5.291 666 6 20 (14) 939 957 (18) (114) (143) 29 12.359 11.330 1.029 54.591 50.142 4.449 69.781 85.438 (15.657) 19.578 19.098 480 939 957 (18) (400) (502) 102 144.489 155.133 (10.644) 6.625 4.309 2.316 1.024 669 355 60.112 38.752 21.360 401 230 171 (7.744) (4.315) (3.429) 60.418 39.645 20.773 (1.162) (988) (174) (45) (100) 55 (33.992) (19.610) (14.382) (3.129) (2.247) (882) 7.743 4.316 3.427 (30.585) (18.629) (11.956) 99 (5.174) 5.273 (3) 54 (57) 4.891 743 4.148 1 0 1 1 (45) 46 4.989 (4.422) 9.411 5.562 (1.853) 7.415 976 623 353 31.011 19.885 11.126 (2.727) (2.017) (710) 0 (44) 44 34.822 16.594 18.228 1.340 (169) 1.509 1.001 (410) 1.411 889 104 785 3.718 5.130 (1.412) 0 0 0 6.948 4.655 2.293 4.147 4.299 (152) 127 191 (64) 1.694 1.153 541 1.283 960 323 (285) (402) 117 6.966 6.201 765 978.542 731.244 247.298 71.885 85.842 (13.957) 53.172 40.240 12.932 3.213 5.030 (1.817) (685) (948) 263 1.106.127 861.408 244.719 Amounts paid and change in technical reserves (858.293) (629.677) (228.616) 0 0 0 0 0 0 0 0 0 0 0 0 (858.293) (629.677) (228.616) Acquisition costs & other commission expenses (42.979) (40.338) (2.641) (23.244) (32.611) 9.367 (12.883) (11.332) (1.551) (778) (752) (26) 113 145 (32) (79.771) (84.888) 5.117 RNet impairment of financial investments 0 0 0 0 0 0 (40) (349) 309 0 0 0 (1) 45 (46) (41) (304) 263 G&A expenses (27.986) (20.474) (7.512) (18.728) (18.260) (468) (31.298) (22.700) (8.598) (510) (599) 89 571 758 (187) (77.951) (61.275) (16.676) Amortisation and depreciation (2.083) (1.326) (757) (1.186) (1.088) (98) (2.970) (2.635) (335) (32) (37) 5 2 0 2 (6.269) (5.086) (1.183) Provisions for risks and charges (2.037) (2.134) 97 (944) (2.009) 1.065 (341) (575) 234 (37) (28) (9) (0) 0 (0) (3.359) (4.746) 1.387 Profit before tax 45.164 37.295 7.869 27.783 31.874 (4.091) 5.640 2.649 2.991 1.856 3.614 (1.758) (0) 0 (0) 80.443 75.432 5.011 Income tax NET PROFIT (19.365) (16.465) (2.900) 61.078 58.967 2.111
PROFIT & LOSS AS AT MARCH 31, 2007 SEGMENT REPORTING BY BUSINESS SECTOR / DOMESTIC MARKET LIFE INSURANCE ASSET MANAGEMENT BANKING OTHER CONSOLIDATION ADJUSTMENTS TOTAL Euro/000 Net premiums written Entry fees Management fees Performance fees Banking service fees Other fees Total commission income Interest income and similar income Interest expense and similar charges Net income on investments at fair value Net financial income Net income on other investments Other revenues Total revenues Amounts paid and change in technical reserves Acquisition costs & other commission expenses Net impairment of financial investments G&A expenses Amortisation and depreciation Provisions for risks and charges Profit before tax Income tax NET PROFIT 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta 861.594 641.674 219.920 0 0 0 0 0 0 0 0 0 0 0 0 861.594 641.674 219.920 0 0 0 12.704 20.738 (8.034) 0 0 0 0 0 0 0 0 0 12.704 20.738 (8.034) 41.296 34.122 7.174 37.805 39.219 (1.414) 0 0 0 0 0 0 0 0 0 79.101 73.341 5.760 7.724 10.815 (3.091) 6.107 13.348 (7.241) 0 0 0 0 0 0 0 0 0 13.831 24.163 (10.332) 0 0 0 0 0 0 11.125 10.757 368 0 0 0 (286) (360) 74 10.839 10.397 442 2.418 3.873 (1.455) 5.957 5.281 676 4 9 (5) 939 957 (18) 0 0 0 9.318 10.120 (802) 51.438 48.810 2.628 62.573 78.586 (16.013) 11.129 10.766 363 939 957 (18) (286) (360) 74 125.793 138.759 (12.966) 6.447 4.287 2.160 908 590 318 54.145 34.577 19.568 401 230 171 (4.796) (2.685) (2.111) 57.105 36.999 20.106 (1.162) (988) (174) (39) (28) (11) (31.081) (17.601) (13.480) (3.129) (2.247) (882) 4.796 2.685 2.111 (30.615) (18.179) (12.436) 99 (5.174) 5.273 0 0 0 4.716 559 4.157 1 0 1 0 0 0 4.816 (4.615) 9.431 5.384 (1.875) 7.259 869 562 307 27.780 17.535 10.245 (2.727) (2.017) (710) 0 0 0 31.306 14.205 17.101 1.340 (169) 1.509 108 71 37 860 0 860 3.718 5.130 (1.412) 0 0 0 6.026 5.032 994 4.147 4.299 (152) 34 71 (37) 1.417 827 590 1.283 960 323 0 0 0 6.881 6.157 724 923.903 692.739 231.164 63.584 79.290 (15.706) 41.186 29.128 12.058 3.213 5.030 (1.817) (286) (360) 74 1.031.600 805.827 225.773 (813.500) (596.819) (216.681) 0 0 0 0 0 0 0 0 0 0 0 0 (813.500) (596.819) (216.681) (38.429) (37.597) (832) (20.008) (29.428) 9.420 (6.123) (5.325) (798) (778) (752) (26) 0 0 0 (65.338) (73.102) 7.764 0 0 0 0 0 0 (275) (110) (165) 0 0 0 0 0 0 (275) (110) (165) (25.465) (18.205) (7.260) (16.865) (16.352) (513) (24.224) (17.002) (7.222) (510) (599) 89 286 360 (74) (66.778) (51.798) (14.980) (1.517) (1.156) (361) (1.089) (1.024) (65) (2.465) (2.141) (324) (32) (37) 5 0 0 0 (5.103) (4.358) (745) (2.037) (2.134) 97 (944) (1.969) 1.025 (333) (537) 204 (37) (28) (9) 0 0 0 (3.351) (4.668) 1.317 42.955 36.828 6.127 24.678 30.517 (5.839) 7.766 4.013 3.753 1.856 3.614 (1.758) 0 0 0 77.255 74.972 2.283 (18.029) (16.022) (2.007) 59.226 58.950 276
PROFIT & LOSS AS AT MARCH 31, 2007 SEGMENT REPORTING BY BUSINESS SECTOR / DOMESTIC MARKET LIFE INSURANCE ASSET MANAGEMENT BANKING OTHER CONSOLIDATION ADJUSTMENTS TOTAL Euro/000 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta 2007 2006 delta Net premiums written Entry fees Management fees Performance fees Banking service fees Other fees Total commission income Interest income and similar income Interest expense and similar charges Net income on investments at fair value Net financial income Net income on other investments Other revenues Total revenues 51.307 37.152 14.155 0 0 0 0 0 0 0 0 0 0 0 0 51.307 37.152 14.155 0 0 0 1.742 1.774 (32) 0 0 0 0 0 0 0 0 0 1.742 1.774 (32) 0 0 0 4.397 4.363 34 0 0 0 0 0 0 0 0 0 4.397 4.363 34 0 0 0 757 618 139 0 0 0 0 0 0 0 0 0 757 618 139 0 0 0 311 87 224 8.447 8.321 126 0 0 0 0 0 0 8.758 8.408 350 3.152 1.332 1.820 0 10 (10) 2 11 (9) 0 0 0 0 0 0 3.154 1.353 1.801 3.152 1.332 1.820 7.207 6.852 355 8.449 8.332 117 0 0 0 0 0 0 18.808 16.516 2.292 178 22 156 116 79 37 5.967 4.175 1.792 0 0 0 0 0 0 6.261 4.276 1.985 0 0 0 (6) (72) 66 (2.911) (2.009) (902) 0 0 0 0 0 0 (2.917) (2.081) (836) 0 0 0 (3) 54 (57) 175 184 (9) 0 0 0 0 0 0 172 238 (66) 178 22 156 107 61 46 3.231 2.350 881 0 0 0 0 0 0 3.516 2.433 1.083 0 0 0 893 (481) 1.374 29 104 (75) 0 0 0 0 0 0 922 (377) 1.299 0 0 0 93 120 (27) 277 326 (49) 0 0 0 0 (95) 95 370 351 19 54.637 38.506 16.131 8.300 6.552 1.748 11.986 11.112 874 0 0 0 0 (95) 95 74.923 56.075 18.848 Amounts paid and change in technical reserves (44.793) (32.858) (11.935) 0 0 0 0 0 0 0 0 0 0 0 0 (44.793) (32.858) (11.935) Acquisition costs & other commission expenses (4.550) (2.745) (1.805) (3.236) (3.183) (53) (6.759) (6.007) (752) 0 0 0 0 0 0 (14.545) (11.935) (2.610) RNet impairment of financial investments 0 0 0 0 0 0 235 (239) 474 0 0 0 0 0 0 235 (239) 474 G&A expenses (2.519) (2.266) (253) (1.862) (1.908) 46 (7.076) (5.698) (1.378) 0 0 0 0 95 (95) (11.457) (9.777) (1.680) Amortisation and depreciation (566) (170) (396) (97) (64) (33) (504) (494) (10) 0 0 0 0 0 0 (1.167) (728) (439) Provisions for risks and charges 0 0 0 0 (40) 40 (8) (38) 30 0 0 0 0 0 0 (8) (78) 70 Profit before tax 2.209 467 1.742 3.105 1.357 1.748 (2.126) (1.364) (762) 0 0 0 0 0 0 3.188 460 2.728 Income tax NET PROFIT/(LOSS) (1.336) (443) (893) 1.852 17 1.835