9M12 Results Presentation 6...¾9M 2011 Results ¾Closing Remarks ¾4Q12 Business Update. 13 Banca...

Banca Generali9 Months 2012 results and business update

Milan, 6 November 2012

2Banca Generali 2012 Nine Month Results

Today’s Agenda

Net Inflows, AUM and Recruiting

9M 2012 Results

Closing Remarks

4Q12 Business Update


Strong set of 9M results reflecting a solid underlying business trend

9M 2012 Results

(€ m)

51.2

97.5

9M11 9M12

+91%

Net Profit (LfL)

(€ m)

13.8

30.2

3Q11 3Q12

+120%

Quarterly Net Profit (LfL)

Positive asset growth momentum

Excellent trend in net inflows, with a buoyant mix:total net inflows at €1,463m YTD at end October

o/w €1,240m in managed assets (+134% YoY)

Sustained assets growth at €25.5 bn (+10% YTD)

Solid capital position reinforced

Excess capital at €112 (+26% YTD) Total capital ratio at 13.7% and T1 Capital ratio at 12.1%(vs. 12.8% and 11.1% respectively at 2011YE)

Outstanding set of results

Strong revenues €251m +44% (+27% ex-LTRO),driven by net commissions and net interest margin

Tight cost control (+3.4%) driving cost/income downto best practice level

Higher gross margin (AUM profitability) at 1.88%,+31 bps


Consolidated 9M12 Profit and Loss Account: main takeaways

9M 2011 Results

Interest margin strongly benefitted from the volumes expansion and from the higher investment yield on the bond portfolio

Net commissions (+19% YoY) boosted by a positive fund performance and by solid management fees

Operating costs well under control (+3.4%), with G&A flat net of stamp duty

Total provisions remain significantly ahead of last year due to the higher net inflows and recruiting prospects

Net profit almost doubled YoY (+91% YoY)

The figures reported in this document are IFRS 5 compliant - Figures “excl. GIL” (LfL) do not incorporate the contribution of Generali Investment Luxembourg (“GIL”) merged with BG Investment Lux on 9 Sept. 2009

(€ m) 9M11 9M12 % Chg 9M11 9M12 % Chg

(reported) (reported) (excl. GIL) (excl. GIL)

Net Interest Income 33.3 80.4 141.3% 33.3 80.4 141.4%

Commission income 258.9 288.6 11.5% 240.4 267.1 11.1%

Commission expense -117.9 -121.5 3.1% -104.4 -105.2 0.8%

Net Commission 141.0 167.1 18.5% 136.0 161.9 19.1%

Net income (loss) from trading activities -75.2 8.4 -111.1% -75.2 8.4 -111.1%

Dividends 80.5 0.7 -99.1% 80.5 0.7 -99.1%

Net income (loss) from trading activities and Dividends 5.3 9.1 72.0% 5.3 9.1 71.2%

Net Banking Income 179.6 256.5 42.9% 174.6 251.3 44.0%

Staff expenses -49.6 -52.1 4.8% -48.2 -50.6 4.8%

Other general and administrative expense -62.3 -68.7 10.3% -62.0 -68.3 10.2%

Depreciation and amortisation -3.1 -3.4 10.9% -3.0 -3.4 11.2%

Other net operating income (expense) 7.9 13.3 69.5% 7.9 13.3 69.2%

Total costs -107.2 -110.9 3.4% -105.3 -108.9 3.4%

Cost /Income Ratio -58.0% -41.9% 16,1 p.p. -58.6% -42.0% 16,6 p.p.

Operating Profit 72.4 145.7 101.3% 69.2 142.5 105.8%

Net adjustments for impair.loans and other assets -2.3 -2.2 -5.1% -2.3 -2.2 -5.1%

Net provisions for liabilities and contingencies -11.8 -15.3 30.2% -11.9 -15.3 28.7%

Profit Before Taxation 58.3 128.1 119.9% 55.0 124.9 127.2%

Direct income taxes -5.4 -28.0 416.2% -5.1 -27.7 442.7%

Tax rate 9.3% 21.9% 12,6 p.p. 9.3% 22.2% 12,9 p.p.

Income/(losses) after tax on assets held for sales 1.3 0.3 -75.8% 1.3 0.3 -75.8%

Minorities interest -3.0 -2.9 -1.9% 0.0 0.0 -25.0%

Net Profit 51.2 97.5 90.5% 51.2 97.5 90.5%


Net CommissionsNet Interest Income (NII)

Trading and dividends

Total Revenues (LfL)

Strong growth in total revenues even excluding LTRO contribution

(€ m)

174.6

136.0(78%)

251.3

80.4(32%)

161.9(64%)

9M11 9M12

5.3 (3%) 9.1 (4%)

33.3(19%)

+44%

9M 2012 Results

(€ m)

174.6

222.2

9M11 9M12

+27%

Total Revenues ex-LTRO (LfL)

A well-balanced contribution from all business lines

NII at €80m, +141% YoY (+45% ex-LTRO)

net commissions at €162m, +19% YoY

trading income at €9m,+71% YoY

Strong revenue growth even ex-LTRO contribution

LTRO assets’ expiry

0.2

1.1

4Q14 1Q15

(€ bn)

LTRO-assets have been invested in Italian government bonds with fully-matched maturities


Net interest income benefits from organic business growth and favourable investment conditions

(€ m)

9M11 9M12

80.4

Net Interest Income (LfL)

33.3

48.2

32.2

Ordinarybusiness

33.3

+45%

+141%

Time deposits,LTRO

9M 2012 Results

2012 YTD lending at €250m, backed by €350m assets

The overall banking book maintains a defensive

profile in terms of duration (1.3) and maturity (2.0)

Total banking book at €4.4bn with a 3.3% yield(vs. 2.1% at 9M11)

2012 YTD lending activity

New loans issued at 9M 2012

Related guarantees

(€ m)


Management FeesFront Fees

Banking Revenues

Performance Fees

Gross commissions boosted by fund performance, while management fees are back to the 2011 pre-crisis level

9M11 9M12

240.4

191.0(79%)

20.6 (9%)

23.2 (10%)

42.9(16%)

185.6(70%)

18.9 (7%)

267.1

5.6 (2%)

19.7 (7%)

+11.0%(€ m)

Breakdown of Gross Commissions (LfL, YoY)

9M 2012 Results

Quarterly Management Fees (LfL)

2Q12

61.5

3Q11

61.5

3Q12

62.8+2%

Positive rebound of management fees both QoQ and YoY,

reflecting the increase in the underlying AUM due to:

- positive net inflows in managed assets

- positive fund performance, in particular for in-house products such as BG Sicav (+6.8%) and BG Selection (+6.5%)


Net Commissions (LfL)

Net commissions increase by 19%, with stable pay-out policy

9M11 9M12

136.0

161.9

Pay-out ratio excl. perf. fees (LfL)

+19%

(€ m)

9M 2012 Results

9M10 9M12

46.0%46.9%

9M11

44.5%

Net Inflows

Stable pay-out policy, with annual swings linked to

net inflows and recruiting trend

9M10 9M12

8911.362

9M11

755

No. of new Recruits

9M10 9M12

32

40

9M11

34


Increase in operating expenses in line with inflation

Operating expenses, net of stamp duty (LfL)

(€ m)

9M 2012 Results

4.8105.3

108.9

+3.4%

9M11 9M12

(4.9)

9M11 9M12

(10.0)+102%

48.2

9M11 9M12

50.6+4.8%

… that is fully recovered from clients and classified under

depreciation & other operating

income

Staff expenses incorporate a

conservative projection for variable

compensation

Split of operating expenses (LfL)

62.0

9M11 9M12

68.3+10.2%13.36.8

55.2 55.00%

G&A expenses fully unchanged, net of stamp duty

charge…

Stamp duty

(12.7)(6.5)(1.4)

(0.6)

recoveredstamp duty

3.0 3.4Cost base well under control (+3.4%)vs. sharp increase in revenues (+44%), thus

proving strict cost discipline


AUM profitability Cost/Income ratio

9M10 9M11

1.65%1.57%

ROE

Profitability ratios provide evidence of company’s positive business trend

1.88%

9M12

9M 2012 Results

9M10 9M11

54.3%

58.6%

42.0%

9M12 2010 2011

41.8%38.9%

45.8%

9M12

Recurring commissions & interest marginPerformance FeesPerformance Fees Recurring commissions & interest marginPerformance FeesPerformance Fees

1.65%1.54%

1.50%

0.23%

0.03%0.15%

Like for Like figures (LfL)


Net equity anddividends paid

Excess Capital Tier 1 Capital Ratio

2010 2011

262.4281.2

2010 2011

89.6 89.1

(€ m) (€ m)

11.0%

2010

11.1%

2011

Total Capital Ratio

13.3%

2010

12.8%

2011

Solid capital position confirmed

12.1%

9M12

13.7%

9M12

112

9M129M12

345.1

… Total dividends paid

€49.9m €61.3m

€61.4m

9M 2012 Results


Today’s Agenda


9M 2011 Results

Closing Remarks



Strong net inflows, already above the result of full year 2012


9M11 9M12

755

1,362

(€ m)

436

143 167

108293

-23

-165

174

1Q12 2Q12 3Q12

1Q12 2Q12 3Q12

1Q12 2Q12 3Q12

Net inflows

from insuranceproducts in 1Q …

… towards managed products from 2Qonwards

Banking products Work as a collectorfor new money

Insurance

Sicav/portfolio mgmt

Banking & Custody

Banca Generali 9M12 net inflows split by product category

9M12 Net Inflows

2011

+80%

1,260


Banca Generali is significantly outpacing market growth and gaining market share


Banca Generali’s Net Inflows

Sector Net Inflows

Jan-Sept 2011 Jan-Sept 2012

755

1,362

Jan-Sept 2011 Jan-Sept 2012

7.8

8.3

(€ m)

(€ bn) 6.4%

+80%

Ranking by net inflows

Ranking by FA’s productivity

1,980

Mediolanum FinecoB.ca

Generali

Allianz BankB.ca

Fideuram Azimut

Finanza &Futuro

MediolanumFineco

B.caGenerali Allianz Bank

B.caFideuram

AzimutFinanza &

Futuro

1,474 1,4551,362

1,063799

597

935.5

625.3571.4

472.1453.5

397.5299.6

(€ /000)

Source: Assoreti, figures at Sept. 2012

Source: Assoreti, figures at Sept. 2012


In October clear move towards long term investment solutions

(€ m)

2012 Monthly Net Inflows by Product Mix


88

243

10453

80 75115 119 107

256

157

-83

3490

139

64 5

-24 -4

-155

-200

-150

-100

-50

0

50

100

150

200

250

300

Jan Feb Mar Apr May June July Aug Sept Oct

Managed Products Administered Products

256

Tot. NetInflows 160 138 143 219 139 120 95 103 101 245


Net inflows and fund performance lifted assets to €25.5 bn (+10% YTD)

5.5 (24%)

Funds/SICAV

Life Insurance

Current Accounts

Securities

9M12

Asset Breakdown

2011

(€ bn)

3.1 (12%)

8.2 (32%)

2.1 (8%)

25.5

6.4 (25%)

23.3

5.5 (24%)

2.8 (12%)

7.3 (31%)

1.8 (8%)

Portfolio Management

5.9 (25%)

5.8 (23%)

+10%


A positive trend throughout all product lines:

Fund/Sicav +10% YoY

Portfolio Management +8% YoY

Life +11% YoY

69% of total assets are managed assets

BG SelectionManaged by third-party AM

71%

22%

7%BG Selectionmanaged in-house

BG Sicav

Breakdown of Lux-based assets by product


Total BG Group

AUM already brought in Potential AUM AUM

Banca Generali hired 40 new

professionals in 9M 2012, with

an average portfolio of €15m

The average size of the FA’s

portfolios increased by 16% YoY

to €17.5 m

The avg. FA’s portfolio of BGPB is

€32.9m (+11% YoY, +9% YTD)

The avg. FA’s portfolio of BG

is €13.2m (+17% YoY, +11% YTD)

N. FAs AUM (€m)

209

387

596

9M12 Recruiting Results

8

32

40

N° of FA

11.913.2+11%

9M12

30.232.9+9%

9M12

9M12

15.817.5

+11%

AUM/FA

11.3

29.7

15.1

FY119M11

+11%

+17%

+16%

€m

Net Inflows, AUM and recruiting

The recruiting policy remained focussed on high standing professionals

€m

FY119M11

FY119M11


Today’s Agenda


9M 2011 Results

Closing Remarks

4Q 12 Business Update


Cautiously increasing risk exposure into clients’ portfolios

4Q12 business update

… it is time to cautiously enhance risk profile in clients’ portfolio with

selected products

Past cautious stance justified but …

60

70

80

90

100

110

120

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr-1

1

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr-1

2

May

-12

Jun-

12

Jul-1

2

Aug-

12

Sep-

12

MS World Index

MS World Emerging Markets Index

102

86

100

Source: Bloomberg, MSWO and MSEF normalised as of Dec. 31, 2010


Product overview

BG Selection offer is constantly reviewed to comprise the best asset manager

Multi-manager Funds of Funds Single-manager Funds of Funds

EmergingSpecialist

Regional

Global

EuroLiquidity

Money Market

Absolute Return

Multi-Strategy

Equity

Funds Global Dynamic

T-Cube

Africa & Middle East

China & India

Eastern Europe

Latin America

FixedIncome

Next-11

Multistrategy

Third-PartyAsset Managers

sub-funds new launches

Short strategies


2012 Business Update

BG Target remains a core offer for private clients

Capital protection component provided by stripped BTPs

+

Equity exposure provided by BG Selection sub-funds

8 investment opportunities:

- 5 lines on Emerging Markets (Next 11, China&India, Africa & ME, East

Europe, Latin America)

- 3 lines focussed on Growth themes (Alfa, Multi Emerging Markets, Multiglobal

Plus)

5

3

had > € 900 m assets at the end of September

2012 Net Inflows: €100m2012 YTD performance: +15%

BTP 01/11/2021

40,000

50,000

60,000

70,000

80,000

90,000

100,000

21/0

5/20

07

21/1

1/20

07

21/0

5/20

08

21/1

1/20

08

21/0

5/20

09

21/1

1/20

09

21/0

5/20

10

21/1

1/20

10

21/0

5/20

11

21/1

1/20

11

21/0

5/20

12

21/1

1/20

12

21/0

5/20

13

21/1

1/20

13

21/0

5/20

14

21/1

1/20

14

21/0

5/20

15

21/1

1/20

15

21/0

5/20

16

21/1

1/20

16

21/0

5/20

17

21/1

1/20

17

21/0

5/20

18

21/1

1/20

18

21/0

5/20

19

21/1

1/20

19

21/0

5/20

20

21/1

1/20

20

21/0

5/20

21

BTPS 01/11/2021implied yield at 4.5%BTPS price trend excl.-volatility



Ample room for increasing share of managed assets as financial markets stabilise

Managed &Insurance

Assests

Administered

Assets

25.5

Total BG Assets

According to our Advisory model,as long as market volatility decreasesthe share of administered assets

should be reviewed and better allocatedto avoid investment inefficiencies

Need to partly switch administered assets towards more efficient investment solutions:

Best asset managers available

Innovative and tailor-made FoFWide choice of sub-funds availableZero cost of switchingSingle form contract

Protected capital

Option to capitalise return anytimeFocus on LT growth investment themesWide choice of product expiry


Deposit account and repos expiring in 4Q12

15

8070

50

Over €200m of liquidity products set to expire by 2012 year-end

An opportunity to switch assets towards managed products to

exploit ongoing investment opportunities


Actions aimed at cautiously increasing risk exposure into clients’ portfolios

Sept Oct Nov Dec


Today’s Agenda


9M 2011 Results

Closing Remarks



Our key pillars to build on strength

Closing Remarks

Priority on preserving clients’ investments

Quality of thedistribution networks

Cost disciplineSolid capital position

Sustainability of results


Disclaimer

The manager responsible for preparing the company’s financial reports (Giancarlo Fancel) declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law of Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

G. Fancel, CFO

Certain statements contained herein are statements of future expectations and other forward-looking statements.

These expectations are based on management’s current views and assumptions and involve known and unknown risks and uncertainties.

The user of such information should recognise that actual results, performance or events may differ materially from such expectations because they relate to future events and circumstances which are beyond our control including, among other things, general economic and sector conditions.

Neither Banca Generali S.p.A. nor any of its affiliates, directors, officers employees or agents owe any duty of care towards any user of the information provided herein nor any obligation to update any forward-looking information contained in this document.

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9M12 Results Presentation 6...¾9M 2011 Results ¾Closing Remarks ¾4Q12 Business Update. 13 Banca...

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