Banca Generali Built Around the Future...Banca Generali CEO Presentation at the Cheuvreux Insurance...

BancaBanca GeneraliGeneraliBuilt Around the FutureBuilt Around the Future

The The CheuvreuxCheuvreux Insurance Conference 2009Insurance Conference 2009

Giorgio Girelli, CEO

Paris, January 13, 2009

2Banca Generali CEO Presentation at the Cheuvreux Insurance Conference – Paris, January 13, 2009

Key HighlightsKey Highlights

Within present challenging financial market conditions,

of which we can’t predict the remaining duration and intensity

Banca Generali is fully equipped to enhance its strategic positioning

Scenario

Sound positioning, sound business model and a well placed network towards clients

Excellent solidity and liquidity of the bank

Favorable environment to push for recruiting of top professionals

9M08Results

2009 Business

guidelines

Results are positive and the Company is ready to catch up any market recovery:

… growth is going on (about €650 million of net inflows in 2008, excluding Simgenia) …

… revenues are driven by recurring fees with …

… costs are well under control…

… stable industrial result, net of unrealised capital losses

- positive net inflows target…

- … mostly by increasing market share (new clients from traditional banks) …

- … and by launching a new set of products

- streamlining of the organization to increase efficiency and to cut costs

Preliminary Comments


TodayToday’’s Agendas Agenda

Outlook and Conclusions

Business Review

9M08 Results Review


2008: a painful year for the Italian Mutual Fund Industry2008: a painful year for the Italian Mutual Fund Industry……

Business Review

JAN 08 FEB 08 MAR 08 APR 08 MAY 08 JUN 08

-19.2

-7.3

-10.3

-8.4 -8.1

-12.6

JUL 08

-13.5

AUG 08

-2.6

-9.5

SEP 08

-22.9

OCT 08 NOV 08 DEC 08

-131.6

FY 08

……while while BancaBanca Generali was able to stand up wellGenerali was able to stand up well……

JAN 08 FEB 08 MAR 08 APR 08 MAY 08 JUN 08 JUL 08 AUG 08 SEP 08 OCT 08 NOV 08 DEC 08 FY 08

-275

-97-121

152

276

347

165

95

-66 -49

444

28

€ m

€ bn

Source: Assogestioni

Source: Assogestioni

-8.2-9.0

-11


…… consolidating its third place ranking amongst FA (consolidating its third place ranking amongst FA (PromotoriPromotori) networks thanks to ) networks thanks to ……

Business Review

JAN 08 FEB 08 MAR 08 APR 08 MAY 08 JUN 08 JUL 08 AUG 08 SEP 08 OCT 08 NOV 08 DEC 08

415769

384673

797

402

912 807

Source: Assoreti

-154

220

The Italian Financial Advisors Network (Assoreti) Net Inflows

400

11%

591

24%

1,297

2,260

FinecoBank*BancaMediolanum

Gruppo Banca

Generali**

12%

641

GruppoBanca

Fideuram

5%

268

GruppoCredem

42%

End-November 2008 Ranking by Net InflowsEnd-November 2008 Ranking by Net Inflows

Source: Assoreti

BancaNetwork

Investimenti

169

3%

Finanza& Futuro

142

3%

UBI BancaPrivate Inv.

128

Alto AdigeBanca

110

Banca Nuova

98 Banca SAI

-115-158

Banca SARA

-177

BancaCR Firenze

-110

Credit SuisseItaly

234

Others

2% 2% 2%

-2% -3%-3%

-2%

4%

€ m

* Xelion data not avaible

194

4%

GruppoAzimut

-188

SimgeniaSim

-4%

** Simgenia not included

€ m


……an integrated business model with distinctive features an integrated business model with distinctive features ……

(a) La Venezia is 100% owned by Assicurazioni Generali

Asset Gathering Wealth Management

Private ClientsPrivate Clients Affluent ClientsAffluent Clients Trust Services Asset Mgmt.

MulibrandMulibrandMulibrandOpen Architecture

Business Review

Advisory ServiceInsurance Products (a)

Banking Platform

Focus on affluent and private clientsFocus on affluent and private clients A wide range of products

able to meet all investment needs of our clients

A wide range of products

able to meet all investment needs of our clients


…… segmented Distribution Network segmented Distribution Network ……

Business Review

High Net Worth

Affluent

> €500,000

€50-500,000

PBs: 239 RMs: 41

FAs: 1,370

€584m

€57m

Target Clients

AUM perClients

SalesNetwork*

2008 YTDNet Inflows

* Data as at 26 December 2008


…… a comprehensive product offer, leveraging on open architecturea comprehensive product offer, leveraging on open architecture……

Business Review

Third partiesMutual Funds, Funds of Funds

Life policies

Securities

Banking and short-term cashmanagement products

Managed Assets highly leveraging

on open architecture, as third party funds represent

45% of total managed assets

Insurance offer benefits

from having a dedicated

product company within

the Generali network

Wide range of administered products, proving key to retain and expand clients’ base during phases of high volatility of financial markets

In-houseMutual Funds, Funds of Funds


Banca Generali has almost completed the restructuring of its network, with the aim of reducing the number

of financial advisors with a portfolio < €4 million

The number of financial advisors with a portfolio > €10m has doubled in the last three years

Banca Generali has almost completed the restructuring of its network, with the aim of reducing the number

of financial advisors with a portfolio < €4 million

The number of financial advisors with a portfolio > €10m has doubled in the last three years

…… a a continuous effort to improve networkcontinuous effort to improve network’’s quality coupled withs quality coupled with ……

2005 9M08

2,006

Number of Financial Advisors AUM/Financial Advisor

2005 9M08

7.9

11.7

* Excluding Simgenia

* *

20%

40%

40%

Top (>€10m) Middle (€10-4m) <€4m

1,671

33%

46%

21%

+48%

-17% 9.4

23.6

Banca GeneraliBSI Italia

278 BSI1,393 BG

Business Review


Net Inflows remain highly satisfactory through core distributionNet Inflows remain highly satisfactory through core distribution networksnetworks……

Business Review

Monthly New Inflows Sep 08

584

57

-177

Banca Generali

BSI Italia

464

Cumulated New Inflows

Simgenia

..

€641 million

net inflows

from the core

business

bearing high

margins

Poor contribution

due to low focus

on financial

products by the

insurance

networks in

current

market conditions

Excellent

results

in Private

Banking

* of which BSI Italia -€7m, BG -€13m and Simgenia -€18m

*

35

84

52

78

101

36

5367

-38

6

-11Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Oct 08

Nov 08

**

** of which BSI Italia +€6m, BG €0m and Simgenia -€17m

3,930

322

2,425

1,183

End-Nov 08

7 Capital Protection Discretionary Accounts

14 Luxembourg-based Funds of Funds

14 Traditional SICAV Lines

Traditional Life Insurance

€ m€ m

… with a clear focus on high margin products


... a clear focus on long term relationship... a clear focus on long term relationship……

…focusing on long-term relationship

Sound capital and liquidity position

Outflows at physiological level

Unparallel product offer

Recruiting is going on

Commercial banks leaving the asset management business

Business Review

Clear and simple messages to the network…

Stay very close to the client

Let’s exploit our very privileged competitive situation and let’s

acquire new clients

Never force the “deep emotions” of the clients


.... Well.... Well--diversified asset allocation generating satisfactory results fordiversified asset allocation generating satisfactory results for clients clients

65% of our managed assets is represented by defensive products , 11% by flexible and total return and 24% by equity

Over 60% of our in-house and multibrand funds/sicavwas more than 3/4/5 star rated Morningstar

65% of our managed assets is represented by defensive products , 11% by flexible and total return and 24% by equity

Over 60% of our in-house and multibrand funds/sicavwas more than 3/4/5 star rated Morningstar

Generali Risk

Generali Medium Risk

Source: Il Mondo – 17 October 2008

19°

32°

In house Products

Generali Products

Third Parties’ Products

16

63%

64%

59%

3-4-5 star rated Morningstar

22

1,117

* BG distributes also 469 non-rated products

BG Managed Assets…

9.5Funds and

Managed Accounts

5.4Life Insurance

…split by asset class

Defensive products

Flexible/Total Return

Equity

€ 14.9bn

(€ m)

(n°)

24%11%

65%

Business Review

Best Performer 2008 A competitive product offer *


Simgenia will continue to distribute BG banking products (on an exclusive basis) and BG in-houseinvestment products

The 85% stock has been sold at € 13.3 m with an implied capital gain of € 8.7 m, which will betaken through shareholders’ equity, thus reinforcing BG balance sheet.

1) Banca Generali is increasing focus on affluent and private clients;2) Simgenia low profitability level due to its high exposure to institutional assets

(60% of total)

Disposal of Disposal of SimgeniaSimgenia SimSim

End-December 2008, Banca Generali sold 85% of Simgenia to other Generali Group Companies

WHY

CASH-IN

BUSINESSIMPLICATIONS

Simgenia shareholders’ structure (before) Simgenia shareholders’ structure (after)

100% Banca Generali

Assicurazioni Generali

Alleanza Assicurazioni

INA Assitalia

TORO Assicurazioni

Banca Generali

FATA Assicurazioni

Business Review

25%

20%

15%

15%

15%

10%




Business Review

9M08 Results Review


Our key strength: a limited revenues volatilityOur key strength: a limited revenues volatility

9M08 Results Review

Net Banking Income was supported by an healthy net interest margin increase counterbalancing decreasing net

commission income

The 15% decrease in management fees is in line with AUM reduction due to financial market trend

Recurring commissions remain well above 80% of total gross commissions

Net Banking Income was supported by an healthy net interest margin increase counterbalancing decreasing net

commission income

The 15% decrease in management fees is in line with AUM reduction due to financial market trend

Recurring commissions remain well above 80% of total gross commissions

(€ m)

Net Commission

Net Interest Income Net Income from trading and dividendsUnrealised gains/losses

142.8

31.5

115.5

-15.2

127.4

43.4

92.8

-10.8%

-4.4

9M07 9M08Management FeesFront Fees

Banking Revenues

Performance Fees

-4.4+11.0

9M07 9M08

(€ m)

221.01.0 (0.4%)

159.8(72.3%)

39.7(18.0%)

20.5 (9.3%)

-14.2%

3.1 (1.6%)

135.9(71.7%)

30.7 (16.2%)

19.9 (10.5%)

189.6

81.6% 82.2%

+37.9%

-15%-19.7%

Breakdown of Net Banking Income and Gross Commissions


AUM Profitability holding up well despite tough market conditionAUM Profitability holding up well despite tough market conditionss

9M08 Results Review

(€ m)

1.40% 1.31% 1.39%1.46%

1.34%1.26%

1.40%

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08

In 3Q08, Banca Generali was able to enhance its gross profitability despite the unfavourable market conditions

The result was achieved thanks to a strong improve in interest margin that more than offset the switch towards a more

defensive product mix (i.e. more insurance and more administered assets)

Over the 9M08, AUM profitability came out at 1.33% (vs. 1.37% in the 9M07)

In 3Q08, Banca Generali was able to enhance its gross profitability despite the unfavourable market conditions

The result was achieved thanks to a strong improve in interest margin that more than offset the switch towards a more

defensive product mix (i.e. more insurance and more administered assets)

Over the 9M08, AUM profitability came out at 1.33% (vs. 1.37% in the 9M07)

AUM Profitability Trend


Cost management: very effective despite increasing costs for comCost management: very effective despite increasing costs for compliance and pliance and LuxLux

9M08 Results Review

(€ m)

100.1

5%

103.9

39%(40.6)

57%(59.1)

+3.8%

G&A ExpensesStaff

41%(41.1)

9M 07 9M 08

Depreciation and amortisation

5% (5.0) 4% (4.2)

Labour costs remain well under control, despite the 5% increase in the National Banking Contract;

G&A expenses increased due to costs for the new Lux venture, implementation of the new regulations and compliance.

Labour costs remain well under control, despite the 5% increase in the National Banking Contract;

G&A expenses increased due to costs for the new Lux venture, implementation of the new regulations and compliance.

54%(54.0)

15%

85%

Fixed Costs Variable Costs

Operating Costs Breakdown

An aggressivecosts’ cutting plan is under development

Cost structure

Operating Costs

100.0 103.9

9M06 LfL 9M07 9M08

100.1

(€ m)

+0.1% +3.8%


Industrial Profitability performing well in an horrible landscapIndustrial Profitability performing well in an horrible landscapee

(€ m)

18.9

9M 06reported

9M 07Revised (*)

9M Results Review

6.7

18.3

9M 08Revised (*)

The ongoing financial earthquake deeply hit reported net profit, but the underlying business is going on well

even in difficult times

The ongoing financial earthquake deeply hit reported net profit, but the underlying business is going on well

even in difficult times

Even in a difficult periodlike 2007-08,

the industrial result(after-tax profit

net of unrealised capitallosses) has beenwell performing

(*) adjusted for the impact of the Unrealised Capital Losses

Banca Generali Net Profit Trend, stripping out the unrealised capital losses on the HFT portfolio




Business Review

9M08 Results Review


Banca Generali is very well-equipped to manage effectively a stormy environment

- Organic growth: main goals for the network in 2009 are:

- acquiring new clients, also exploiting the strength of our brand;

- increasing the share of wallet on marginal existing

clients through brand new sales techniques ;

- Recruiting: current turmoil is supporting the recruiting of top FA’s and

Private Bankers

Closing remarks (1/2)Closing remarks (1/2)

- Increasing front fees through specific actions for new sales

- Good profitability arising from interest margin on current accounts

- On-going reallocation to Lux Sicav

- Life products also set to maintain profitability

- Performance fees are possible as soon as the market catches up

- Stabilising revenues (e.g. Trading Desk) are increasing

An ambitious cost-cutting plan focused on all the G&A expense

is under preparation

Asset growth

Revenues

Costs



2) the strength of Generali brand enables us to acquire new clients and to recruit top professionals;

Closing remarks (2/2)Closing remarks (2/2)

Banca Generali will definitely come out stronger from this turbulence

and we’re managing the company with this medium term goal

1) the current business model (Banking products, Life insurance and open architecture in Asset Management coupled with skilled financial consultants) is proving the winning model. The turmoil of commercial banks is an opportunity to gather new assets;

3) as in previous market turbulences, interesting growth opportunities arise once the market is more stable: the second wave of consolidation will start.



BACKBACK--UPUP


Consolidated Profit and Loss 9M08 Results: Key CommentsConsolidated Profit and Loss 9M08 Results: Key Comments

Net Interest Margin benefited from high interest rate levels and expansion in banking activitiesNet Commissions were hit by 1) the decrease in AUM (-11.8% yoy) due to the ongoing financial crisis and 2) by one-off commission expenses (about €7 million)

Tax optimisation efforts are bearing fruits

Operating Costs well under control despite high start-up costs related to nre regulations and compliance and to the set up of the Lux venture

Net Investment Loss was at €8,8 million. The line transpose the revision in the IAS39 principle on financial assets riclassification

Write-down on Lehman exposureProvisions for recruiting in line with our targets that foresaw a significant decrease compared to 2007

(€ mil.) 9M07 9M 08 % Chg

Net Interest Income 31.4 43.4 37.9%

Commission income 221.0 189.6 -14.2%

Commission expense -105.5 -96.8 -8.2%

Net Commission 115.5 92.8 -19.6%

Net income (loss) from trading activities -6.8 -41.5 n.m.

Dividends 2.6 32.7 n.m.

Net Banking Income 142.8 127.4 -10.8%

Staff expenses -41.1 -40.6 -1.1%

Other general and administrative expense -54.0 -59.1 9.4%

-95.0 -99.7 4.9%

Depreciation and amortisation -5.1 -4.2 -16.5%

Other net operating income (expense) 6.1 5.9 -3.7%

Net Operating Expenses -94.0 -98.0 4.3%

Operating Profit 48.8 29.4 -39.8%

Net adjustments for impair.loans and other assets -0.1 -5.5 n.m.

Net provisions for liabilities and contingencies -30.6 -17.5 -42.7%

Profit Before Taxation 18.1 6.3 -64.9%

Direct income taxes -8.7 -1.1 -87.7%

Net Profit 9.3 5.3 -43.5%

Cost /Income Ratio 62.3% 73.6% 11.3 p.p.

EBITDA 53.9 33.6 -37.6%

Tax Rate 48.3% 16.9% -31.4 p.p.

Back-up


AUM holding up despite challenging market conditionsAUM holding up despite challenging market conditions

9.5

5.4

7.3

11.7%

24.5

12.8%

26.7

62.9

FinecoBank

GruppoFideuram

Gruppo Banca

Generali

10.7%

22.2

BancaMediolanum

10.3%

21.5

AllianzBank

30.1%

9M08 Ranking by AUM9M08 Ranking by AUM

Source: Assoreti

9M08 AUM posted a 9.1%

decline YTD due primarily to

falling financial markets

9M08 AUM still includes

Simgenia assets that will be

deconsolidated in 2009 as a result

of the disposal of the 85% stake

of the company approved in

December 2008

Net of Simgenia Institutional

outflows, redemptions from retail

clients remain at physiological

levels

9M08 AUM posted a 9.1%

decline YTD due primarily to

falling financial markets

9M08 AUM still includes

Simgenia assets that will be

deconsolidated in 2009 as a result

of the disposal of the 85% stake

of the company approved in

December 2008

Net of Simgenia Institutional

outflows, redemptions from retail

clients remain at physiological

levels

9M08

Managed Assets

Life Insurance

Non Managed Assets

2.2

of which Simgenia

GruppoAzimut

14.0

6.7% 22.2

9.4%

-6.05%

-40.4%

-46.0%

-48.7%

Performance FY08

3.15%JPM EMU

-6.4%Merril Lynch Financial EMU

-22.4%MSCI World

-29.7%Stoxx 600

-33.6%Mibtel

Performance 9M08

(€ bn)

Back-up


Giuliana PagliariInvestor Relations Officer

Tel +39 02 6076 5548

Federico MangiagalliTel +39 02 6076 5545

Fax +39 02 6682 854

E-mail [email protected]

Website: www.bancagenerali.com

Giuliana PagliariInvestor Relations Officer

Tel +39 02 6076 5548

Federico MangiagalliTel +39 02 6076 5545

Fax +39 02 6682 854

E-mail [email protected]

Website: www.bancagenerali.com

Investor Relations TeamInvestor Relations Team


DisclaimerDisclaimer

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 recognize 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.

Banca Generali Built Around the Future...Banca Generali CEO Presentation at the Cheuvreux Insurance...

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