BancaBanca GeneraliGenerali 2009 First Quarter Results Giorgio Girelli, CEO Milan, May 11, 2009 Today’s Agenda ¾ 1Q09 Results ¾ Net Inflows and AUM ¾ Business Update ¾ Closing Remarks 2 Banca Generali 2009 First Quarter Results 1Q09 Results 2009: Start off on the right foot NETNET PROFITPROFIT 1Q09 Results: Key Messages (€ m) +€5.7m 5.0 ININ AA NUTSHELL:NUTSHELL: SOLIDSOLID GROWTHGROWTH ¾¾ StrongStrong InterestInterest marginmargin despitedespite thethe interestinterest raterate fallfall Banca Generali 5.8 Group ex Simgenia Simgenia 0.3 ¾¾ 1Q091Q09 grossgross commissioncommission imprimprovingoving fromfrom 4Q084Q08 levelslevels Banca Generali -1.0 -0.8 Simgenia Group ex Simgenia OutOut ofof thethe -0.7 consolidationconsolidation ¾ Positive contributions arising from trading and expiry perimeterperimeter ¾ Positive contributions arising from trading and expiry 1Q08 1Q09 fromfrom 1H091H09 ofof existingexisting bonds,bonds, partlypartly counterbalancedcounterbalanced byby assetasset 2006-092006-09 QUARTERLYQUARTERLY NETNET PROFITPROFIT TRENDTREND impairmentimpairment ¾¾ PositivePositive netnet inflowsinflows withwith aa dramaticdramatic changechange inin salessales 5.8 mixmix 4.7 ¾¾ GoodGood AUMAUM resilienceresilience -0.1 -0.7 ¾¾ BancaBanca del del GottardoGottardo Italia Italia alreadyalready fullyfully integrated,integrated, 1Q09 providing a positive contribution 1Q06 1Q07 1Q08 ex Simgenia providing a positive contribution 3 Banca Generali 2009 First Quarter Results 1Q09 Results Consolidated Profit and Loss 1Q09 Results (€ m) 1Q 08 1Q 09 % Chg (reported) (reported) 1Q09 Results: Selected Items Net Interest Income 14.0 16.3 16.4% Commission income 63.7 57.7 -9.5% Commission expense -28.0 -24.5 -12.5% ¾ Strong banking income (+45% yoy) Net Commission 35.7 33.1 -7.1% driven by a healthy interest margin (+16% Net income (loss) from trading activities -11.8 5.5 n.m. yoy), almost stable net commissions (-7% yoy), and a positive net income from trading Dividends 0.1 0.0 n.m. and expiry of existing bonds (€5.5 million) Net Banking Income 37.9 54.9 44.8% Staff expenses -13.3 -15.9 19.5% ¾ Cost spike due Banca del Gottardo Italia integration and to one-off items. Staff costs Other general and administrative expense -15.7 -19.6 24.9% stable on a like for like basis -29.0 -35.5 22.4% ¾ Write-off on investments (€3.5 million) Depreciation and amortisation -1.1 -1.3 15.8% related primarily to a private equity stake Other net operating income (expense) 1.3 2.2 73.1% ¾Net provisions, almost in line with Net Operating Expenses -28.9 -34.6 20.0% 1Q08, incorporating a higher share for network incentivation Operating Profit 9.0 20.3 124.3% Net adjustments for impair.loans and other assets 0.1 -3.5 n.m. ¾ Net Profit at €5 million, sharply improving yoy Net provisions for liabilities and contingencies -7.9 -7.3 -7.9% Gain (loss) from disposal of equity investments 0.0 0.0 - ¾Simgenia still in red but set to exit the Profit Before Taxation 1.2 9.5 703.8% consolidation area from 1H09 Direct income taxes -1.2 -3.4 191.7% ¾EBITDA almost doubled yoy Income/(losses) after tax on assets held for sales -0.7 -1.2 65.7% ¾Tax rate affected by seasonality (IRAP) but Net Profit -0.7 5.0 n.m. set to reduce over next quarters Cost /Income Ratio 73.2% 60.7% -12.5 p.p. EBITDA 10.2 21.6 112.2% Tax rate 97.1% 35.2% -61.9 p.p. 4 Banca Generali 2009 First Quarter Results 1Q09 Results Financial items affecting 1Q09 results €6.8m ¾ Primarily referring to the disposal Realised gains ¾ Primarily referring to the disposal ofof bondsbonds heldheld inin thethe HFTHFT andand AFSAFS on the investment portfolio portfolioportfolio 1Q09 1Q09 Unrealised losses ¾¾ ReflectingReflecting thethe mark-to-marketmark-to-market valuationvaluation ofof thethe outstandingoutstanding HFTHFT on the investment portfolio -€1.3m bondbond portfolioportfolio 1Q09 ¾ Primarily an impairment on a private Write-off on investments ¾ Primarily an impairment on a private equityequity investmentinvestment -€3.5m 5 Banca Generali 2009 First Quarter Results 1Q09 Results Excellent operating performance in a very tough quarter Breakdown of Net Banking Income (€ m) +45% ¾¾NetNet bankingbanking impactimpact increasedincreased byby 45%45% yoyyoy to to 54.9 €54.9€54.9 millionmillion 37.9 16.3 (30%) ¾¾StrongStrong interestinterest marginmargin (+16%(+16% yoy)yoy) 14.0 (37%) ¾¾ResilientResilient NetNet CommissionsCommissions supportedsupported byby aa recoveryrecovery inin frontfront feesfees 33.1 35.7 (60%) (94%) ¾¾PositivePositive netnet investmentinvestment incomeincome drivendriven byby €6.8€6.8 millionmillion gainsgains onon bondbond tradingtrading andand expiryexpiry ofof existingexisting bond,bond, partlypartly counterbalancedcounterbalanced 6.8 1.8(5%) (12%) byby -€1.3-€1.3 millionmillion ofof unrealisedunrealised losseslosses onon thethe HFTHFT -13.5 -1.3 (-2%) bondbond portfolioportfolio (-36%) 1Q08 1Q09 Net Interest Income Net Income from trading and dividends Net Commission Unrealised/realised gains/losses 6 Banca Generali 2009 First Quarter Results 1Q09 Results A positive result in 1Q09 interest margin 3M Euribor 1Q09 vs. 4Q08 Interest Margin % 6 4,7% (Mar 31,2008) 5,4% (Oct 2008) 5 17.8 -8.4% 16.3 4 3 1,5% (Mar 31) 2 1 0 Jul-08 4Q08 Jan-08 Feb-08 Jun-08 Oct-08 Jan-09 Feb-09 1Q09 Dec-07 Apr-08 Sep-08 Nov-08 Dec-08 Mar-08 Mar-09 Aug-08 May-08 (€ m) -1.0 +2.2 ¾ 1Q09 return on the investment portfolio still supported +1.1 ¾ 1Q09 return on the investment portfolio still supported byby thethe highhigh shareshare ofof bondsbonds withwith variablevariable yieldsyields (70%(70% ofof total)total) 16.3 14 ¾¾ TheThe recoveryrecovery ofof unrealisedunrealised losseslosses throughthrough amortisedamortised costcost accountingaccounting isis supportingsupporting thethe interestinterest marginmargin (and(and willwill continuecontinue toto dodo so)so) 1Q08 Banca del Amortised Volumes, 1Q09 Gottardo Italia Costs rates 7 Banca Generali 2009 First Quarter Results 1Q09 Results Gross Commissions with a slight decline yoy, yet improving compared to 4Q08 Breakdown of Gross Commissions (€ m) 1Q09 vs. 4Q08 Gross Commissions -9.5% +3% 57.7 55.9 63.7 1.4 (2%) 57.7 9.3 (15%) 2.2 (4%) 13.0 (22%) 4Q08 1Q09 44.8 (70%) 37.3 Restated ex Simgenia (65%) (€ m) 8.2 (13%) 5.2 (9%) ¾ 1Q09 commissions improved against 4Q08 results 1Q08 1Q09 Reported ex-Simgenia ¾Management fees decreased on a yoy basis due to the AUM contraction and the more conservative asset mix, but they increased compared to 4Q08 Management Fees Banking Revenues Front Fees Performance Fees ¾ Banking revenues decreased due to a fall in trading commissions 8 Banca Generali 2009 First Quarter Results 1Q09 Results Net commissions benefited from the announced optimisation at pay-out level 1Q09 Net Commissions (€ m) 1Q09 Pay-out -7.1% 52.9% 44.0% 42.5% 35.7 33.1 1Q08 FY08 1Q09 (€ m) ¾The decrease in 1Q09 pay-out is already providing some evidence of the actions 1Q08 1Q09 undertaken to enhance profitability. Reported ex-Simgenia ¾ More benefits are set to materialise over next quarters as 2008 one-off components will not be replicated 9 Banca Generali 2009 First Quarter Results 1Q09 Results Costs hit by one-off items that will not be replicated over next few quarters Operating Cost Breakdown ¾ More than half of the cost increase is related to the integration of Banca del (€ m) Gottardo +9.7% 36.8 ¾ Staff costs proved to be well under 30.1 33.5 control, as they increased by only 2.8% on a like-for-like basis 43% (15.9) 44% 46% ¾ G&A costs under pressure (+16% on a (15.4) (13.3) like-for-like basis) due to one-off projects (i.e. consultancy and IT upgrading) started at the end of 2008. These costs are one-off and their impact should be smoothed over 53% the rest of the year 52% 50% (19.6) 68%(15.7) 68%(16.9) ¾ The cost-saving actions planned in 2008 5% 5% (BSI Italia integration, organisation 4% (1.1) 4% (1.2) 4% (1.3) streamlining) are underway and are set to 1Q08 1Q08 restated 1Q09 deliver their benefits from end 2009 Reported with Banca del Gottardo, ex Simgenia ex Simgenia Staff G&A Expenses Depreciation and amortisation 10 Banca Generali 2009 First Quarter Results 1Q09 Results Improved profitability compared to last year AUM Profitability Cost/Income Ratio +4 b.p. -12.8 p.p. 1.59% 73.5% 1.55% 60.7% 1.52% 1.54% 1Q08 (*) 1Q09 1Q08 (*) 1Q09 AUM profitability excluding perform. fees Performance Fees * Restated excluding Simgenia and Corporate Assets, including Banca del Gottardo Italia * Restated excluding Simgenia and Corporate Assets, including Banca del Gottardo Italia ¾¾ TheThe increasingincreasing pushpush ofof managedmanaged productsproducts leledd toto anan improvementimprovement inin the the AUMAUM profitabilityprofitability ¾¾ Cost/IncomeCost/Income ratioratio benefitedbenefited fromfrom thethe exexpansionpansion ofof thethe revenuerevenue base,base, moremore thanthan offsettingoffsetting alsoalso thethe one-offone-off costcost increaseincrease 11 Banca Generali 2009 First Quarter Results ¾ 1Q09 Results ¾ Net Inflows and AUM ¾ Business Update ¾ Closing Remarks 12 Banca Generali 2009 First Quarter Results Net Inflows and AUM Net Inflows: Banca Generali is once again one the best performers in the sector in 1Q09 20092009 NetNet Inflows:Inflows: BancaBanca G Generalienerali vs.vs. AssogestioniAssogestioni Source Assogestioni €98.5m ¾¾ BancaBanca Generali Generali stronglystrongly outperformedoutperformed thethe ItalianItalian €46.1m mutualmutual fundfund industryindustry (Assogestioni),(Assogestioni), thatthat lostlost €22.4m €25.0m €5.0m almostalmost €14€14 billionbillion