MEDIOBANCA PROFILO DI GRUPPO · 2020. 12. 10. · Agenda 1. Il Gruppo Mediobanca a) Dati di Gruppo...

MEDIOBANCA

GROUP PROFILE

30 June 2020

AGENDA

1. MB Group profile

a) Group KPIs

b) Wealth Management

c) Consumer Banking

d) Corporate & Investment Banking

e) Principal Investing

Annex

1. 2020 Group figures by divisions

3

CIB

23%

WM

23%

Consumer

43%

Other

11%

Revenues

MEDIOBANCA: A DIVERSIFIED FINANCIAL GROUP…

Key financial information¹

1) Figures as at end-June 2020 (financial year)2) In accordance with ECB guidance on Covid crisis3) As at 10 February 20214) Subject to removal of ECB restriction, currently in force until 30 September 20215) ROTE based on net profit adjusted calculated as GOP net of LLPs, minorities and taxes, with normalized tax rate (33% for Affluent,

CIB, Consumer and HF; 25% for PB and AM; 2% for PI). Covid-related impact excluded for FY20 and 4Q20

Revenues: €2.5bn TFA: €64bn

Net profit: €600m Loan book: €47bn

ROTE adj5: 10% Gross NPLs/Gross Ls 4.1%

C/I ratio: 47% DPS FY20: €02

No. of staff: 4.9k Payout FY21: 70%4

CET1 phase in: 16.1% Loan/funding ratio: 85%

Total assets: €79bn Market cap:3 €7.8bn

CIB

29%

WM

12%

Consumer

47%

Other

12%

GOP

CIB

42%

WM

10%

Consumer

25%

Other

23%

RWAs

CIB

40%

WM

28%

Consumer

28%

Other

4%

Loans

Affluent

44% UHNWI

41%

AM

15%

TFAs

Consumer Banking

Corporate & Investment

Banking

Principal Investing

Wealth Management

MB Group profile Section 1

4

Capital intensive

NII driver

Anti-cyclical

Labour intensive

Fee driver

Cyclical

Capital light

Fee driver

Recurrent

EPS/DPS accretive

Revenue driver

Source of capital

...WITH AN INTEGRATED BUSINESS MODEL

Principal Investing

HIGH SYNERGIC BUSINESS

HIGH RETURN BUSINESS

DIVERSIFICATION OPPORTUNITYREALLOCATION OPPORTUNITY

WealthManagement

Corporate & Inv.Banking

Consumer Banking


5

A STORY OF BUSINESS GROWTH AND DEVELOPMENT

Founded in 1946 by three state-owned banks (Comit, Credit and Banco di Roma), Mediobanca’s mission was initially to supportthe rebuilding of Italian industry.

Mediobanca became close to the most important Italian industrial families, supporting the growth of their businesses also throughequity investments. Mediobanca worked with Italian corporates in their restructuring, privatization and internationalizationprocesses, easing their access to capital markets.

Mediobanca pioneered also retail/mid-corporate banking activities, entering the consumer credit sector with Compass (1960),leasing with Selma (1970), residential mortgages with Micos (1992) and private banking with Banca Esperia (2001) and CMB (2003).

Listed since 1956, Mediobanca was privatized in 1988. The banking shareholders reduced their stake to 25%, entering into ashareholder agreement with some industrial corporates holding another 25%. The syndicate agreement was reduced over time toroughly 30% and expired on Dec.2018. A light consultation agreement gathers today roughly 12% of the capital.

Since 2003, the current management team has focused the corporate strategy on the three core divisions, prioritizing thedevelopment of Wealth Management, while sustaining the long standing growth of the other two business:

Wealth Management: was born as a division in 2016, gathering all AM driven businesses:

Affluent & Premier: the multi-channel digital bank CheBanca! (set up in 2008 as a deposit arm) became a wealthmanager in late 2017 when it acquired selected retail activities of Barclays in Italy and launched a fast growing network offinancial advisors and relationship managers

Private Banking & HNWI: Banca Esperia full control was achieved in 2017 while a stronger integration of CMB was started

Asset Management: Cairn Capital, a London based credit specialist, was acquired in 2015, followed in 2018 by RAMActive Investments, Geneva based leading European systematic asset manager. MBSGR was relaunched in 2017 as agroup AM factory

Consumer credit: in 2008 Compass doubled its size with the acquisition of Linea, thus catching up with the top three consumerlending Italian players;

European CIB operations: offices have been opened in Paris (2004), New York (2006), Madrid (2007), Frankfurt (2007) andLondon (2008). In 2019 Mediobanca strengthened its presence in France through the partnership with Messier Maris & Associés

In the meantime Mediobanca has actively managed its equity portfolio, selling off cross-shareholdings, exiting shareholderagreements and disposing of non-strategic stakes. It has remained a key shareholder of Ass. Generali (13% stake).


6

SHAREHOLDERS’ BASE EVOLUTION

Mediobanca shareholders’ structure1

U.S. 39%

U.K. 18%

Italy 14%

France 7%

Belgium 5%

Rest of

the world 17%

1) Institutional investor breakdown by geography source: Nasdaq Shareholder Analysis, August 2020

2) No provision made for commitments either in terms of lock-up or voting rights over shares syndicated. The agreement governs the means by which shareholders meet to share reflections and considerations regarding the Group’s performance, in accordance with the principle of parity of information versus the market

12.6% Consultation Agreement2

Institutional investors by region

Historical syndicated pact expired. A new consultation agreement was signed in December 2018, gathering 12.6% of capital, lasting 3Y, with no restrictions on shares

Institutional investors account for 50%, stably split by geographical region: U.S. (39%), U.K. (18%) and Italy (14%)

Mediolanum

3.3%

S.-33 (Benetton)

2.1%

Fininvest 2.0%

FINPRIV 1.6%

Other <1% 3.6%

Institutional

Investors

50%

Retail & Other

21.4%

L. Del

Vecchio

13.2%

Bolloré Group

2.8%


7

MEDIOBANCA DISTINCTIVENESS…

Comprehensive ESG

approach

CSR involving the whole organization

Remuneration policy fully aligned with stakeholders’

interests

Governance

progressively evolving

Free float at 100%, institutional investors at 75%

Board quality steadily improved/improving in

number, mix of competences, independence

High capital generation,

high asset quality

content

CET1@14% Last capital increase in 1998

Unrivalled asset quality

Low operational gearing

Limited exposure to ITA

macro and adverse

regulation

Low exposure to Italian spread and govies

Low NII sensitivity to interest rates and GDP

Solid loan book/TFAs growth over the whole cycle

Responsible business

approach

Strong brand value

Reputable, trusted, high-quality player

Talent-driven organization

Strong positioning

in business whose

growth is driven by

long-term trends

Leading investment bank in Southern Europe

One of top 3 operators in Italian Consumer Banking

Distinctive player in WM

Specialization and

Innovation

Private-Investment Bank of choice for Italian

entrepreneurs

Innovative, long-standing profitable consumer bank

Unique human-digital bank for affluent customers

Stable Board and

management in the last

15Y

Indepth knowledge of business environment

Long-term approach to business

Strong risk management as part of DNA


8

>>

…HAS REVERTED INTO AN ONGOING ACCRETIVE VALUE CYCLE

PROFITABLE

STAKEHOLDER-FRIENDLY

GROWING

STRONG POSITIONING

High yield for our shareholders

Workplace welfare for our people

Corporate citizenship for our community

ABOVE AVERAGE PERFORMANCE

High profitability and capitalization

All business units repaying capital

SOLID

RESPONSIBLE

SPECIALIZED FINANCE DNA

Effectiveness of MB business model, focused on high-margin, specialized,

long-term growing businesses

REPUTABLE - HIGH QUALITY

Strong brand value

Standing and quality

Ethical approach

UNBROKEN GROWTH

in human talent, assets and profit with no compromise on risk profile

CAPITAL GENERATION CAPABILITY

Possibility to invest to enhance positioning


9

CIB

34%

WM

47%

Consumer

19%

MEDIOBANCA GREW AND RESHAPED ACROSS CYCLES...

Enlarged and diversified revenues, with WM now at 23% (from almost zero), CIB at 23%, Consumer at 42%, PI

reduced to 12% (from 30%)

Different funding and loan book mix Stronger capital base

10%

12%

14%

16%

June09 June13 June19 June20

CET1 ratio (%)

41%

57%23%

25%

10%

5%

26%

12%

FY June07 FY June20

NII Fees Trading Equity acc.

1.6

2.5Revenues by product - €bn

44% 23%

24%42%2%

23%

30%

12%

FY June07 FY June20

PI

WM

Consumer

CIB

1.6

2.5

52%40%

11% 28%

23%28%

14%4%

FY June09 FY June20

Large Corporate

Consumer

SME

4735 Loans

69%

34%

12%

44%

10%19% 12%

FY June09 FY June20

53 55Funding

Bonds

WM Deposits

TLTRO

Others

€bn

Residentialmortgages

Revenues by division - €bnFees by division - €bn


10

… SHOWING SOUND RESILIENCE & STAKEHOLDERS REMUNERATION

High capital generation (last capital increase in 1998) and high profitability…

10.3%11.1% 11.2% 11.5% 11.7%

11.1%12.0% 12.1%

13.3%14.2% 14.1%

16.1%

J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18 J-19 J-20

3.1 3.2

3.5 3.5 3.5 3.6 3.8

4.1

4.9 4.95.1 5.3

0.20.3

0.4

J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18 J-19 J-20

Employees FAs

5

89 9

4 4

7 78

1010 10

J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18 J-19 J-20

144 144

42

127

213 231

320

413

410

160

J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18 J-19 J-20

Dividend Buy-back

Cumulative ~€2.2bn

CET1 ratio % ROTE adj. %

… has enabled MB to return more than €2bn to shareholders, while investing constantly in people

Group staff (‘000)€m


FY20 DPS=0 due to ECB restrictions

11

…AND RISK PROFILE OUTSTANDING AT EU LEVEL

6.5% 8.0%11.4%

9.4%4.1% 3.5%

-20.0%-15.0%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%

0%

5%

10%

15%

20%

25%

MB

Dec20

EU avg.

Sept20

IT avg.

Sept20

MB: buffers well over SREP and MREL requirements

Stage 2 loans% of loans2

Loans under moratoria well below Italian average, Stage 2 high coverage, stage 3 aligned to EU averages

MB: liquidity and funding ratios at strong levels

3.7% 3.4% 5.9%

51.2%46.6%

53.8%

20.0%30.0%40.0%50.0%60.0%

0%2%4%6%8%

10%

MB

Dec20

EU avg.

Sept20

IT avg.

Sept20

5.4%

12.0%

22.0%

MB Listed ITA

banks

All ITA banks

160%

193%

166% 165% 164%155%

105% 103% 103%109% 109% 107%

Sept19 Dec19 Mar20 June20 Sept20 Dec20

LCR

NSFR

16.2%

37.1%

CET1 ratio (Dec20) MREL liabilities (% RWA, Sept20)

1) MB as at Dec.20. Source: Bank of Italy, as of 29 January 2021 for systemic data; ITA banks’ June20 results presentations, reports and pillar 3 for Listed ITA banks2) Source: EBA Risk Dashboard – Data as of September 2020- %of loans (histogram) and coverage ratio (dots). MB data as of Dec20

MREL req.

21.85%

SREP req.

7.9%

>800bps buffer

>650bps fully loaded

Stage 3 loans

% of loans2

Total granted moratoria

% of loans¹

MREL liabilities

~2x requirement

2.4%

outstanding coverage

coverage


12

Our 2019-23 BP aims to further upgrade the effectiveness of our business model

in order to definitively establish Mediobanca as a distinctive growth player in Europe

which is consistently valued as a Specialized Financial Group

BP19-23 MISSION:TO DEFINITIVELY ESTABLISH MEDIOBANCA

AS A DISTINCTIVE GROWTH PLAYER

GROWTH CAPABILITIES

by

BRAND, REVENUES,

CAPITAL AND PROFIT

VALUE CREATION

by

DELIVERING INDUSTRY LEADING

STAKEHOLDER REMUNERATION

DISTINCTIVE BUSINESS MODEL

by

CAPABILITY TO PROFIT FROM

A CHALLENGING MACRO SCENARIO

IN NEXT 4Y MEDIOBANCA WILL STAND OUT BECAUSE OF ITS

SOUND MARKET OPPORTUNITIES

and

MATERIAL INVESTMENTS in people, innovation and distribution

SELF-PERPETUATING

MB ACCRETIVE VALUE CYCLE

and

TALENT/CAPITAL MANAGEMENT

STRONG POSITIONING & BUSINESS

DIVERSIFICATION

and

CULTURE & SUSTAINABILITY

DUE TO


13

SECTOR

OPPORTUNITIES

SOUND BUSINESS POSITIONING TO TURN A CHALLENGING SCENARIO

INTO OPPORTUNITIES

MACRO

OPPORTUNITIES

Mediobanca will focus on growth

organically and

through M&A

Profound restructuring in

universal/commercial banking due to

unprecedented margin squeeze

MBWM

will become a market leader with high

growth rates & sustainability

Italian WM market worth €4tr, largely

un-managed (65%)

Specialized operator gaining share

MBCIB

will grow its market share in Europe

in M&A and CapMkt

MBCB

will leverage its strong positioning

to become a front runner once again

Consumer Banking

under-penetrated in Italy.

Changed consumer behavior requiring

new products and distribution

Corporate and Financial Sponsors

activity will stay high in Europe

Boutique-type organization to continue

taking market share


14

Targeting industry-leading performance

BP19/23 STRATEGY, TARGETS CONFIRMED, NOW INCLUDING COVID IMPACT

Profitability growth

ROTE23 @11%

Earnings growth

+4% EPS CAGR1

Revenues growth

+4% CAGR1

CET1 ratio progressively optimized at 13.5%

throughout 2023 with a mix of cash dividend

and share buyback

1) 4YCAGR 19/23, including treasury shares cancellation (subject to ECB authorization)

Shift to capital-light fee business

Revenue growth in a challenging environment

Enhanced return to shareholders

CAPITAL MANAGEMENT POLICY

DPS20 = 0, in accordance with ECB recommendation

Dividend pay-out @70% in FY21, pending ECB guidance / authorization after end-Sept. 2021

Progressive optimization of CET1 to 13.5% confirmed by end-June 2023 as a mix of cash dividend and buybacks,

the size and mix of which will be set annually depending on developments in the pandemic and Mediobanca

stock price


15

Distribution and coverage:up over 1,000 people in 4Y

o/w 2/3 at variable cost

~600~400

~60

FY19 WM CB CIB BP23T

Group ambitions Section 1

STRONG INVESTMENTS IN PEOPLE AND INNOVATION

With no restructuring/rationalization needs and keeping efficiency core in the organization (cost/income 46%)

Mediobanca in the next 4Y will invest in human talent and IT/digital upgrade

to keep the bank on the top of technological frontier

to enhance customer experience given their changing behaviour

to enlarge revenues also trough organizational efficiencies

… coupled with €250m in IT investmentsOver 1,000 additional sales people at work…

15% 85%€ ~250mIn 4Y

IT/digital upgrade

Regulation

16

REVENUE GROWTH IN A CHALLENING ENVIROMENT DRIVEN BY K-LIGHT BUSINESS

EXECUTION RISK MINIMIZED BY DIVERSIFICATION

2.5

3.0

FY19¹ Wealth

Management

Corporate &

Inv. Banking

Consumer

Banking

Principal

Investing

Holding

Functions

BP23T

+8%

+6%

+3%+3%

Capital light Capital intensive

Revenues trend (€bn, 4YCAGR %)

Group 4YCAGR: +4%

1) Excluding non recurring income in banking book

~


17

GROUP TARGETS

Financial targets based on current regulatory requirements and Group scope of consolidation

Group Target June19 June23 4Y CAGR

Revenues (€bn) 2.5 3.0 +4%

EPS (€) 0.93 1.10 +4%3

ROTE adj. 10% 11% +1pp

CET1 phase-in 14% ~13.5%

TFAs (€bn) 61 83 +8%

Loans (€bn) 44 51 +4%

Funding (€bn) 51 56 +2%

Divisional Target June19 June23 4Y

CAGR

Revenues (€bn)

Wealth Management 0.5 0.7 +8%

Corp. & Inv. Banking 0.6 0.8 +6%

Consumer Banking 1 >1.1 +3%

ROAC (%)

Wealth Management 16% 25% +9pp

Consumer Banking 30% 28/30% ~

Corp. & Inv. Banking 15% 16% +1pp


18

Sustainable bond issue: €500m

40% of procurement expenses assessed with CSR criteria

Customer satisfaction: CheBanca! CSI¹ on core segment² @73, NPS¹ @25

Compass: CSI @85, NPS @55

CSR ENHANCEMENT FOR ALL STAKEHOLDERS’ BENEFIT

1) CSI: Customer Satisfaction Index; NPS: Net Promoter Score2) Core: Premier: clients with wealth between €100k and €5m

CSR AT BOARD LEVEL (competencies, strategies)

CSR IN THE PLAN WITH TARGET DISCLOSURE (Sustainable Development Goals framework)

CSR TARGETS INCLUDED IN TOP MANAGEMENT LONG-TERM INCENTIVE PLAN

Avg. training hours up 25%, to enhance employees’ competences

~50% of female profiles to be considered for external selections

All suitable female profiles to be considered for internal promotions and/or vacancies

Asset Management: 100% of new investments screened also with ESG criteria

€700m investments in Italian excellent SMEs ESG qualified products in clients’ portfolio +30%

€4m per year in projects with positive social/environmental impact

MB Social Impact Fund: AUM increase at least by 20%

Energy: 92% from renewable sources, CO2 emissions down 15%; hybrid cars @90% of MB fleet

RAM: first issue of a carbon neutral fund

CheBanca! Green mortgages up 50%


AGENDA

1. MB Group profile

a) Group KPIs


c) Consumer Banking



Annex


20

MEDIOBANCA GROUP BUSINESS MODEL

Mediobanca Group

Principal Investing

(PI)

Consumer Banking

(CB)


Banking

(CIB)


Banking

Mediobanca Spa

Messier Maris & Associés

Consumer Banking

Compass

Specialty Finance

MBFacta

MBCredit Solution

Holding Functions

Wealth Management

(WM)

Affluent & Premiere

CheBanca!

Private & HNWI

Mediobanca PB, CMB

Mediobanca AM

MB SGR, CMG

Cairn, RAM

Principal Investing

Ass. Generali

Group ALM & Treasury

Non core assets (leasing)

Corporate

client business

Consumer

client business

AUA/AUM driven

client business

Proprietary

equity stakes

MB Group KPIs Section 1.a

21

PROFITABLE AND VALUABLE DIVISIONS

Holding Functions

(HF)

Revenues 575m

GOP 279m

Loan book 19bn

RWA 20bn

C/I ratio 48%

ROAC 13%

Revenues 1,071m

GOP 443m

Loan book 13bn

RWA 12bn

C/I ratio 28%

ROAC 31%

Revenues 584m

GOP 113m

Loan book 13bn

TFA 64bn

of AUM/AUA 40bn

RWA 5bn

C/I ratio 77%

ROAC 19%

Revenues 313m

GOP 309m

RWA 8bn

C/I ratio nm

ROAC 18%

Revenues -7m

Loan book 2bn

RWA 3bn MB

Gro

up

Revenues 2,513m

GOP 949m

Loan book 47bn

TFA 64bn

RWA 48bn

C/I ratio 47%

ROTE adj 10%

Mediobanca Group as at 30 June 2020 (12M)

Principal Investing

(PI)

Consumer Banking

(CB)


Banking

(CIB)

Wealth Management

(WM)

MB Group KPIs Section 1.a

22

Equity Inv. 5%

Treasury

assets

32%

Loans

59%

Equity 12%

Treasury

liabilities 15%

Funding

70%

Assets Liabilities

Liquidity

35%

Trading

book

2%

Client &

other

9%

Corporate

bonds

16%

BB govies

37%

Private

Banking

6%

Consumer

lending

28%

Large

corporate

35%

Specialty

Finance

5% Mortgages

22%

Leasing

4%

Bonds to

institutional

22% Bonds

to retail

13%

Retail

deposits

28%

PB deposits

16%

Other

12%

ECB

10%

Loans : 44% corporate, 56% retail; ~80% Italy, ~20% non-domestic

Funding: 56% from retail investors (13% bonds to retail, 28% retail deposits and 16% PB deposits)

SUPPORTED BY A STRONG A&L STRUCTURE…

Balance sheet as at June 2020

Total: €78.9bn

CET1: 16.1% Total Capital: 18.8%Leverage Ratio: 9.7%

NSFR: 109%, LCR (end-of period): 165%

NPLs/loans: 4.1% gross, 1.9% netNPLs coverage: 55%Bad loans/loans: 0.9% gross, 0.2% netBad loans coverage: 82%

Loans/

Funding:

85%

€53.9bn

€13bn

€46.7bn

Net

Treasury

€13bn

MB Group today Section 1

AGENDA

1. MB Group profile

a) Group KPIs


c) Consumer Banking



Annex


24

MB WEALTH MANAGEMENT

RATIONALE AND OPPORTUNITIES

Mediobanca distinctiveness:

Affluent: sustainable, through-the-customer’s-eyes, innovative offer

HNWI/UHNWI: leadership based on unique IB/PB model

AM: targeting the illiquid segment

Italy one of the most attractive European markets for WM

Size worth €4.4tr, in Affluent (€3.5tr) and Private (€1.0tr) segments

Largely un-managed

Need for “qualified” offering: non-universal banks gaining market share

Strong Group support to foster WM growth, both organic and through M&A

MB entered and is now focused on WM with a view to leveraging:

Distinctive positioning/branding, unparalleled in the Private/Mid Corp area

Group synergies

Capital buffer to be redeployed into acquisitions

WealthManagement

Wealth Management Section 1.b

25

WE ENTERED 3Y AGO AND ARE NOW A WELL-REPUTED PLAYER…

MBWM gaining positioning

Wealth management players ranking by TFA¹ (€bn, Dec19 peers, MB as at June20)

1) MB TFAs excluding AUC. Sources for other players: data from Associazione Italiana Private Banking, companies’ web site, press. Data as at: Dec.19 for Financial Advisors centred models; June19 for Specialized Private Banks


64

8581

69

59

49

15 14 1310

29 28

20 20 19 18

10 10

5 64

Financial Advisors

centred models

Specialized

Private Banks

MBWM

Next 4Y Mission

Become an established player in the

Affluent segment, by quality and sustainability, with best in class mix of digital/human distribution capabilities

Become a leader in HNWI and UHNWI with a unique Private and Investment

Bank model, working together with CIB to offer integrated advisory and investment

solutions in Private Assets/Markets

Maximize growth and margins in the group value chain reinforcing research & product synergies among traditional and

alternative AM

26

3.97.1 8.4 10.3

0.8

12.5

13.5

12.6

22.9

3.2

4.1

16.3

1.9

16.817.7

12.411.8

9.6

June16 Barclays,

Esperia

acquisitions

June17 Organic

growth

RAM

acquisition

June18 Organic

growth

June19 Organic

growth

June20

Affluent Private* AM

…WITH GROWTH ACHIEVED THROUGH SELECTIVE ACQUISITIONS

AND ORGANICALLY…

Group AUM/AUA trend (€bn)

17.4

AUM/AUA development continuing fuelled by organic growth and M&A

Growth concentrated in managed assets, now 63% of TFAs

Strong performance in Affluent and Private (2Y CAGR +11%), also after Covid

30.0

37.1

AUM+AUA / TFA %

55%

66%

63% 39.0

63%


39.8

63%

* In 2016 and 2017 Private segment includes also AM

27

… THANKS TO STRONG INVESTMENTS IN DISTRIBUTION

SALEFORCE170

322416 445 45490

130

125127 132

FY16 FY17 FY18 FY19 FY20

RMs staff: from 260 to 582

0 65

226

335

414


FAs: from 0 to 414

59

141111 110 1077

1515 15 10


Branches right-sized

019

4670

85


FA shops: from 0 to 85

895K

customers

Partnerships

Mortgages

Third-party

distribution

networks

DIG

ITA

L C

RM

Institutional

sale forces

MAAM,

MBSGR

Digital

Platform

Fintechbuy and customize best

applications for banking,

saving & investing to increase

productivity and efficiency

Private&HNWI

Affluent&Premier

Robo advisory

&

Robo for advisory

572541

452

260


582

28

Affluent: the most attractive segment in the WM arena. Large

(€3.5tr), profitable, with customers more technology-friendly (low

cost to serve) and largely unmanaged

Digital transformation and Fintech moving distribution paradigms

CheBanca!: well positioned to leverage business model

strengths (sustainability& innovation)

to increase market share

to close the profitability gap

EXPLOITING OPPORTUNITIES IN AFFLUENT…

OPPORTUNITIES

Easy, efficient, real omni-channel distribution model

Digital excellence since inception

Transparent, valuable, fair-priced investment services

Recurrent and diversified income

INNOVATIONSUSTAINABILITY

STRENGTHS

POSITIONING OF CHEBANCA!1

1)Source: Peers data from Mediobanca Securities – figures as at June19 annualized

ACTIONS

Brand repositioning: marketing campaign for affluent clients

(current and next generation) to meet their investment needs,

leverage on joint MB-CB! branded products

New service model: more in-depth and comprehensive client

segmentation to customize services/products according to

potential value

Franchise empowerment: commercial staff to increase from 780

to 1,275 (up 60%) focusing on quality and value

Enhancing digital platforms, to supply advisory services via

mobile app and remote channels

Enlarge product offer, leveraging on group capabilities

Investments in training, to upgrade sales force capability to

deliver high-quality advisory services

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

0.1% 0.2% 0.3% 0.4% 0.5% 0.6%

Leverage

positioning,

product,

service

Increase scale, efficiencyPBT ex performance

fees/TFA

Gross Mgt. Fees / AUM

Balls size = SaleforceAUM ptf

Fineco

Mediolanum

Banca Generali

CheBanca!

Today

Azimut

CheBanca!

FY23


29

Private banking: valuable and growing segment where MBPB

and CMB could play a distinctive role given their roots, brand,

customers and positioning as unique Private-Investment banks

for private clients and entrepreneurs

Franchise empowerment: staff to increase to from 133 to 160 (up

20%)

… IN PRIVATE /HNWI SEGMENT…

OPPORTUNITIES POSITIONING

Benchmark in private markets by

investment opportunities

Dual IB/PB coverage

Strong concentration in

HNWI/UHNWI target clients

INNOVATIONUNIQUE PRIVATE-INVESTMENT

BANKING MODEL

STRENGTHS

ACTIONS

MBPB will work on:

Becoming leader in developing investment opportunities in

Private Assets through Club Deals, Private Equity, Italian and

EU Multi-Asset Manager(1)

Strengthening the effective dual PB-IB coverage for MidCaps

focusing on Key Strategic Clients (Entrepreneurs/UHNWI)

CMB will:

Empower positioning on UHNWI also through rebranding

Enhance investment and advisory offering for UHNWI and

Family Offices, also with a deeper segmented approach

Relaunch a credit proposition (Lombard and real estate

financing) in line with the UHNWI strategy

Invest in Technology and Fintechs to deliver efficiencies and

superior client experience

Customer segment

Value proposition

Global advisoryInvestments

Mediobanca

Affluent

UHNWI

¹ Epic, Mediobanca Private Markets 1, Mediobanca Private Markets 2, Club deal in real estate


https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiQs9T35PXPAhXI5xoKHdWaCpkQjRwIBw&url=https://twitter.com/jpmorgan&bvm=bv.136593572,d.bGg&psig=AFQjCNFuIsZuRKn9TFNcxsrw6wYIZPFpFQ&ust=1477479162342063

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjP1YSW5fXPAhVGCBoKHfT2AhYQjRwIBw&url=https://en.wikipedia.org/wiki/File:UBS_Logo.svg&bvm=bv.136593572,d.bGg&psig=AFQjCNESlXnHGs2U-ZtZr0NSSIAYOpk49Q&ust=1477479219767254

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjx4Km85fXPAhXCrRoKHYiGDNoQjRwIBw&url=https://commons.wikimedia.org/wiki/File:Credit_Suisse_Logo.svg&bvm=bv.136593572,d.bGg&psig=AFQjCNH5s6TcH86geqpzMJma0KMG-kiEMw&ust=1477479306153302

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjj0rP_5fXPAhVIMhoKHYzhBVoQjRwIBw&url=http://www.kairosjuliusbaer.com/&bvm=bv.136593572,d.bGg&psig=AFQjCNFSwXijLHIDGjlDZlFDZ52Dwr7Xdg&ust=1477479447835385

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjZ6emU5vXPAhVCvBoKHYNXD3cQjRwIBw&url=http://www.scuoladipaloalto.it/&bvm=bv.136593572,d.bGg&psig=AFQjCNEzpgYTj2xdj0PJ6OubpdN-JRuUZQ&ust=1477479490920517

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjh8vLV5vXPAhWRSxoKHfScCOkQjRwIBw&url=http://www.aipb.it/it/content/ersel&bvm=bv.136593572,d.bGg&psig=AFQjCNGnbj_mUN85C8nhHkTEJ5MlRGLVIA&ust=1477479626378032

30

…AND IN ASSET MANAGEMENT PRODUCTION

MEDIOBANCA SGR

Pivotal role in defining asset allocation strategies

Product innovationwith high value added strategies Global Active Multiasset, Multimanager

Solutions, “New Generation” Target Maturity fund

Leading pure systematic specialist in Europe with a strong research focus and

frontrunner in AI

Focus on active research-driven strategies (AA, high conviction Equity…)

Increase captive networkspenetration

Intermediation of third-party products via guided open architecture

GOALS

Expand alpha capabilities and competitive edge through research and development

ESG implementation

MAXIMIZING GROWTH AND MARGINS IN THE GROUP VALUE CHAIN

REINFORCING RESEARCH & PRODUCT SYNERGIES AMONG TRADITIONAL AND ALTERNATIVE AM

CAIRN CAPITAL RAM

Leading illiquid credit manager

Expand alpha capabilities beyond CLOs

Roll-out of distribution of recently launched UCITS (Strata)

Strengthening co-operation with MB for launch of new credit funds


AGENDA

1. MB Group profile

a) Group KPIs


c) Consumer Banking



Annex


32

MB focus on Consumer Banking with a view to leveraging:

Strong positioning (since 1960s) in a high entry barrier business

Diversification effect vs Group activities, as an anti-cyclical business

High and sustainable profitability

Mediobanca CB a frontrunner in consumer banking with:

Outstanding credit scoring, pricing, management capabilities generating

superior asset quality

Broad, integrated distribution network

Best-in-class service with a full product range

Italian consumer banking an attractive market:

Low penetration/low yield environment

Banking sector restructuring, with branches reducing massively

Upcoming regulation painful for riskier players

MB CONSUMER BANKING

RATIONALE AND OPPORTUNITIES

Compass

Strong Group support to foster growth, both organic and through M&A

Consumer Banking Section 1.c

33

COMPASS – A PIONEER, INNOVATIVE, PROFITABLE OPERATOR…

1) Source: Assofin. New statistics do not include vehicle credit

POSITIONING

Consumer credit ranking¹(new business, €bn, 2019)


Compass market shares

16%

10%6% 6%7% 8%

5%8%

10.5%11.7% 12.0% 11.7%

-5.0%

-3.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

0%

5%

10%

15%

20%

25%

30%

2016 2017 2018 2019

Market growth (YoY) Compass growth (YoY)

Compass market share

OUTSTANDING SCORING AND PRICING CAPABILITIES

VALUE-DRIVEN APPROACH TO BUSINESS

New production driven solely by risk-adj returns

Margin resiliency and profitability preserved

BROAD PRODUCT CAPABILITIESBEST-IN-CLASS SERVICE

BROAD & INTEGRATED DISTRIBUTION NETWORK

EFFICIENT PLATFORM

Very low and stable cost/income (~30%)

Direct distribution growing at variable cost

EXCELLENT ASSET QUALITY AND INDUSTRIALIZED COLLECTION

Net NPLs/Loans: 2.5%Net Bad Loans /Loans: 0.1%NPLs fully covered in 12m

Personal

loans

47%

Special

purpouse

14%

Salary

guarenateed

7%Cars

17%

Cards

15%

€6.4bn new loans, 80% repeat businessCompass branches

172

Compass / Compass Quinto

agencies89

Online business

5,0003rd parties bank

branches

12,600Post offices

200Partnerships/JVs39,000

Dealers (car/retail)

Direct business Indirect business

DISTINCTIVE STRENGTHS

1.2

1.3

2.3

3.9

4.3

5.9

6.0

6.9

9.4

12.3

Finitalia

Fiditalia

Credem

UBI

ISP

Deutsche

Agos

Compass

Findom.

UCI

34

€m€bn

322379

592 605 638687 713 713

800873

936996 1,027

1,071

J07 J08 J09 J10 J11 J12 J13 J14 J15 J16 J17 J18 J19 J20

…WITH THE ABILITY TO GROW STEADILY…TEMPORARY SLOWDOWN IN FY20 ONLY DUE TO COVID-19

Since 2007 Compass’s loan book has tripled…Loan growth halted only due to Covid outbreak

… as have its revenues (now > €1bn) …

…while careful risk approach has kept CoR under control…Temporary increase in FY20 due to Covid

…with net profit up 10x: ROAC ~30%

3.7

8.4 8.1 8.38.8 9.1 9.3 9.6

10.411.0

11.812.5

13.2 13.0

J07 J08 J09 J10 J11 J12 J13 J14 J15 J16 J17 J18 J19 J20

5932 39 22

95 9766

4182

154

258

315 336297

J07 J08 J09 J10 J11 J12 J13 J14 J15 J16 J17 J18 J19 J20

€m, bps €m, %

Linea

acquisition

+3x+3x

+10x


145 224 298 337 302 311 331 438 413 354 276 242 238 325

415372 361

411354 347 360

463413

332

243199 185

247

-50

50

150

250

350

450

550

20

70

120

170

220

270

320

370

420

470

J07 J08 J09 J10 J11 J12 J13 J14 J15 J16 J17 J18 J19 J20

LLPs CoR

35

LIMITED COR & NEW LOAN CORRELATION WITH GDP STRONG CAPABILITIES IN PRICING, RECOVERY, DISPOSALS

5.2 3.8 4.0 4.8 4.9 5.0 5.3 6.0 6.2 6.6 7.0 7.4 6.4

372 361

411

354 347 360

410

373

332

243

199185

247

(11)

(9)

(7)

(5)

(3)

(1)

1

3

50

50

100

150

200

250

300

350

400

450

500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

GD

P g

row

th(%

)

Co

st o

f risk

(b

ps)

New loans (€bn) (1) Compass CoR (1) AQR one-off GDP ITA (2)

Lehman

crisis

Sovereign

crisis

AQR impactLinea acquired in 2008. Following 18m spent harmonizing the

acquired portfolio up to Compass asset quality standards

1) New loans and CoR at fiscal year-end (30 June) 2) Source: GDP ITA IMF, World Economic Outlook for historical values until 2019, MB new macro scenario for FY20 forecast


Covid-19

impact

2.3%1.8%

2.2%

3.0% 2.9% 3.0%2.7%

2.2%

1.6% 1.6% 1.5% 1.4%

2.5%

2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0

Net NPLs/Ls

36

164 172 187

27

80

80

FY16 FY19 BP23T

Branches Agencies Compass Quinto

~200

~350

Compass direct franchise trend

Direct distribution enlargement

Compass-branded branches/agencies to increase from 200 to over 260 (up 30%), of which ~80 run by agents

80 Compass Quinto-branded agencies to be opened to foster salary-backed distribution

COMPASS

AGENCIES

Compass agencies track record in last 18m:

High productivity: close to long standing Compass branches.

Low client cannibalization: 30% of customers are new and 50% are in Compass database but not active

Resilient margins: broadly in line with branches

Flexible cost structure: at breakeven since year 1

CoR in line with branches as managed by

Compass at its standards

Launch of

COMPASS

QUINTO

New Compass Quinto agencies to be established:

Loyal and reputable agent network dedicated to salary guaranteed loans, operating exclusively for Compass

Flexible cost structure

CRM to exploit synergies with Compass clients

CQS product appeal increasing: risk mitigation, lower capital absorption due to CRR2 and sector consolidation needed

STRONG INVESTMENTS AHEAD IN DIRECT DISTRIBUTION…

+21%

+75%

COMPASS

BRANCHHigher “value” of Compass branch distribution: roughly double vs third parties’ channels


37

PRODUCT DISTRIBUTION

INSTANT CREDIT & E-COMMERCE LOANS

…EMBRACING INNOVATION IN PRODUCT AND CHANNEL

INNOVATION

Revolving credit card (designed by Compass on MasterCard circuit) whose use is limited to specific retailers

Benefits: easy to use (directly at the cashier),

increase client retention for the retailer

Could evolve to a “full” credit card (able to operate widely in POS/ATM/online with addendum to contract)

Partners: large retailers

Innovative long-term car rental

Focus: used cars (12/24 months vintage) sold by Compass dealers

Customizable offer: both in terms of service (insurance, assistance, etc.) and car model

Existing online platform strong enhancement with:

“Instant lending” project: process/technical enhancements to minimize “time-to-yes” up to 1h, including automatic identification of clients’ uploaded ID documents

Online/offline integration for mutual collaboration in client assistance between all distribution channels

CLOSED LOOP CARD1

COMPASS RENT2

PP-ONLINE3

4Partnership with primary operator for E-commerce financing solution

Development of APP-based financing services for free instant credit to customers

State-of-the-art platform integrated into retailers marketplace to offer installment-based credit options


AGENDA

1. MB Group profile

a) Group KPIs


c) Consumer Banking



Annex


39

CorporateInvestment

Banking

MB CORPORATE AND INVESTMENT BANKING

RATIONALE & OPPORTUNITIES

Mediobanca distinctiveness

Strong brand recognition and trustworthiness

Client-driven business

Boutique-type approach

Steady profitability with low gearing and excellent asset quality

Mediobanca CIB is best positioned to exploit the potential of a client-driven

business model enhancing its pre-eminent role in Europe

Investment Banking is the native business of Mediobanca

Strong market positioning: leader in Italy, with a growing footprint in Europe

Cornerstone of Mediobanca business diversification strategy

Resilient over the cycle due to balanced product mix

Investment Banking has been a challenging market in the last decade

Boutique-like models continue to outperform bulge-bracket banks

M&A to act as growth enabler in a stagnant economic scenario

Financial Sponsor activity likely to remain high due to low interest rates and ample dry powder

Corporate & Investment Banking Section 1.d

40

1st in Italy

M&A

with >100 deals in last 3Y

ECM

with 30 deals in last 3Y

MEDIOBANCA CIB DISTINCTIVE MODEL …

Top 3 M&A boutique

in France with more

than 200 deals since

inception

SOLID AND WELL DEFINED MARKET POSITIONING

Strong solution capabilities across the full

CIB product offering

DISTRIBUTION PLATFORM

UK, GERMANY & US

Top 10 in M&A in Spain with more than15 deals

in last 3Y

1) Source: Coalition, IB Index FY18


NEXT 4Y MISSION

Empowerment of origination capabilities (focus on Italy, Spain, France) for IB

Leverage European Capital Market platform and O2D model

Empower MidCaps coverage

M&A and CapMkt boutiques aggregator

Leverage MMA partnership

Integrated trading platform

Foster cross-fertilization among customer/product clusters (MidCap,

Private banking, Financial Sponsors)

Capital-light business growth (especially advisory)

Capital consumption optimization (especially in lending)

Cost of risk normalization

41

15.114.5

16.1

17.918.6

2016 2017 2018 2019 2020

… DELIVERING SOUND BUSINESS RESULTS …

CIB loan book up @ €19bn … … with significative decrease in UTPs (€m)

GROWTH &

QUALITY

CIB loan book rebounding

after the crisis

Non domestic exposure

~45% of total with good

country diversification

Net NPLs/Loans: 1.7%¹

Net Bad Ls /Loans: zero¹

DIVERSIFICATION

& EFFICIENCY

Client driven activity with

diversified fee income

stream

Cost/income: 48%

Lending

33%

Advisory

20%

CapMkt

25%

Prop

Trading

2%

Specialty

Finance

20%

€0.6bn

CIB revenues client driven and diversified by product …

Non-

domestic

38%

Domestic

62%€0.6bn

…by geography (~40% non-domestic)


1) Excluding NPLs purchased by MBCS

765 767 667 642

519

0

200

400

600

800

1000

1200

2016 2017 2018 2019 2020

42

…EXCELLENT QUALITY OF CORPORATE LOAN BOOK…

15%

12%

9%8%

7% 7%6%

4%4%

3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 0.6% 0.4%

7%

WB loan book by sector (as at June 2020)

WB loan portfolio by geography3 (as at June20)

Italy

53%

Germany

8% France

9%

Spain

8%

UK

7%Other

Europe

7%US

5%RoW

3%

IG

50%

Crossover

19%

Other

31%

WB exposure skewed to IG/crossover2 (as at June20)

1) “Other” includes sectors with exposure below 2% and low or medium impact from Covid-19: Aerospace, Containers and Packaging, Energy Services, Healthcare, Information Technology, Infrastructure, Metal, Paper and Utilities2) Investment grade (IG) including rating classes from AAA to BBB-, crossover including BB+ rating bucket3) Geographical breakdown based on the following criteria: i) Country where the company generates >50% of consolidated revenues or, if this criterion is not met, ii) Country where the company has either its managerial centre or its main headquarters

FY20 Divisional Results - CIB Section 4

43

… AND OUTSTANDING POSITIONING IN M&A

Source: Refinitiv as of June 2020 – Any Italian involvement

Mediobanca M&A team has been involved in most

industry-shaping deals of 2020, including the merger of

equals between FCA and PSA, the takeover of UBI Banca

by Intesa Sanpaolo, the sale of a minority stake of

Esselunga, and the merger between Inwit and Vodafone

Tower

Increasing presence in financial sponsors & mid

corporate transactions, due to growing coverage efforts

by the dedicated origination team and ongoing co-

operation with Private Banking. Mediobanca provides

advisory services to companies for sell-side processes and

to financial sponsors for buy-side investments

Improved footprint in Europe, including through the

strategic partnership with Messier Maris & Associés,

combining local coverage and industry expertise

June 2020

Financial Advisors to Eurobank

Disposal of 80% of Eurobank Financial Planning Services and

a portion of Mezzanine and Junior Securitization Notes of the

€7.5bn multi-asset NPE Securitization to doValue

€2,4bn

Selected M&A Large Corp Transactions since July 2019

Selected M&A Mid Corp Transactions since July 2019

Selected M&A Sponsors Transactions since July 2019

Selected M&A International Transactions since July 2019

December 2019

Financial Advisor to Cellnex

Acquisition by Cellnex of

1,500 telecom towers from

Orange in Spain

€260m

March 2020

Financial Advisor to INWIT

Integration of INWIT and Vodafone

Italia Tower

€11bn

Tower

Financial Advisor to Snam

Acquisition of 49.07% stake in

Offshore LNG Toscana by Snam

€400m

December 2019

Lead Financial Advisor to PSA

Merger of Equals

€30bn

September 2019Ongoing

Financial Advisor to Violetta Caprotti

Disposal of Violetta Caprotti stakein Esselunga

€ 6,1bn (EqV 100%)

May 2020

Exclusive Financial Advisors to Total

Has announced the acquisition of a portfolio of Power Generation

and Supply assets from EDP

€515m

Ongoing

Financial Advisor to Värde Partners

Acquisition of €570m hotelportfolio from Värde Partners

€ 573m

Ongoing

Intesa Sole Financial AdvisorSole Global Coordinator and

Bookrunner of BPER rights issue

Public Exchange Offer launched by Intesa Sanpaolo on all UBI

Banca ordinary shares

Undisclosed

M&A Italy FY20 – Ranking by Deal Value1

20.3 19.8

17.2

14.312.9

12.311.4 11.3

10.7

5.4

MB UBS GS IMI Equita KPMG BofA JPM ROTH MS

$bn, Deal Value

February 2020

Sell-side financial advisor to DWS

DWS Infrastructure Sale of the Arenales CSP Solar Plant to Cubico

Sustainable Investments

Undisclosed

September 2019

Financial Advisor to Smeg

Acquisition of La Pavoni by SMEG

Undisclosed

September 2019

Financial Advisor to Antares

Acquisition of FT System by Antares Vision

€68m

July 2019

Financial Advisor to A.M.F.

Disposal of AMF to Alpha PrivateEquity

~150m

March 2020

Financial advisor to Fimer

Acquisition of ABB’s solar inverterbusiness by Fimer

Undisclosed

November 2019

Financial Advisor to CBG

CBG disposal to

Xenon Private Equity

€75m

September 2019

Financial Advisor to

InvestIndustrial

Partial Tender Offer launched by

Investindustrial on 3% of the share

capital of Aston Martin Lagonda

£68.4m

June 2020

Sole Financial Advisor to F2i and

Asterion

Acquisition of Sorgenia by F2i

and Asterion and contribution

of Veronagest and San Marco

Bioenergie

Undisclosed

February 2020

Financial Advisor to Bain Capital

Acquisition of a controlling stakein Engineering by Bain Capital

Undisclosed

August 2019

Financial Advisor to Oaktree

Acquisition of Solvia DesarrollosInmobiliarios by Oaktree

€822m

July 2019

Financial Advisor to

Clessidra SGR

Clessidra acquisition of a 80% stake

in the share capital of L&S Light

Undisclosed

FY20 Divisional results - CIB Section 4

44

33.3% 33.3%

29.2%

25.0%

20.8% 20.8%

16.7% 16.7%

8.3% 8.3%

MB GS BofA IMI UCG Citi JPM HSBC UBS UBI

25.9%

19.8%18.3%

16.2%

14.2%13.2%

12.2% 12.2% 11.7%10.7%

UCG IMI BNP SocGen MB CASA JPM BAR GS BofA

…AND IN ECM AND DCM

ECM Italy FY20 (Bookrunner)

DCM Italy FY20 (Bookrunner)

# o

f d

ea

ls p

ric

ed

as

pe

rce

nta

ge

of

tota

l d

ea

ls p

ric

ed

Mediobanca Capital Markets teams successfully completed several major

transactions for both Italian and international clients, including DCM CDP’s

inaugural Social Housing bond, Generali’s inaugural green Tier 2 bond and

ENI’s dual tranche transaction in the midst of the Covid pandemic, and ECM

Nexi Convertible Bond, Unieuro ABB, Nexi ABB, Juventus Rights Issue and

Cellnex Rights Issue

GVS: first company listed on the Italian stock market (MTA) in 2020. Second

largest IPO in Europe and among top 25 globally since Covid-19 virus

outbreak. Books 6x oversubscribed at final IPO price

Mediobanca continued on its path to increase its international presence,

leading – among others – EDP’s Green Hybrid transaction and Santander’s

inaugural green bond, as well as the Cellnex Rights Issue and Convertible

Bond

Mediobanca has been awarded the “best Italian ECM bank of the year”

prize by Global Capital for the fourth year in a row and was recognized as

the best Equity House for US, UK and European funds who want to access top

Italian issuers

# o

f d

ea

ls p

ric

ed

as

pe

rce

nta

ge

of

tota

l d

ea

ls p

ric

ed

Source: Dealogic, Bond Radar as of June 2020 – No self deals

Selected DCM Transactions since July 2019

October 2019

Joint Bookrunner

Inaugural Green Bond:

€ 1,000m

Senior Preferred Bond

0.300% October 2026

May 2020

Joint Bookrunner

Senior dual-tranche:

€ 1,000m

1.250% May 2026

€ 1,000m

2.000% May 2031

January 2020

€ 750m

1.700% 60.5NC5.5

Green Hybrid Bond

due July 2080

Joint Bookrunner

February 2020

€ 750m

1.000% Senior Unsecured Bond

due February 2030

Joint Bookrunner

Social Housing

BondSeptember 2019

Dealer Manager & Joint

Bookrunner

Tender offer on:

£ 495m 6.416% callable in Feb-2022

€ 750m 10.125% callable in Jul-2022

€ 1,250m 7.750% callable in Dec-2022

Inaugural Green issue:

€ 750m Subordinated Tier 2 Bullet Notes

2.124% due October 2030

Selected ECM Transactions since July 2019

2020

€ 46m

ABB

Joint Bookrunner

Italy 2019

€ 300m

Rights Issue

JGC & JBR

Italy2020Italy

€ 562m

ABB

Joint Bookrunner

2020Italy

€ 500m

Convertible Bond

Joint Bookrunner

2019

€ 2,500m

Rights Issue

Joint Bookrunner

Spain

€ 850m

Convertible Bond

FY20 Divisional Results - CIB Section 4

AGENDA

1. MB Group profile

a) Group KPIs


c) Consumer Banking



Annex


46

PrincipalInvesting

PRINCIPAL INVESTING

RATIONALE & OPPORTUNITIES

Investment rationale:

EPS accretive, revenues stabilizer, ROAC above cost of capital

Strong value option as a readily available K-source for potential business growth and transactions

Fully integrated in MB Group diversified business model by

Revenue source (insurance business)

Capital source (re-deployable in banking business when needed)

AG: high-quality investment (A-rated by Fitch) with sound financial performance:

AG BP 2018-21 targets: EPS CAGR range +6-8%; payout range 55-65%

Consensus:¹ steady growth in net profit (4YCAGR 2019-23: +2%)

Principal Investing Section 1.e

1) Consensus as at November 2019

47

PI: SOURCE OF REVENUE AND CAPITAL

Other

investments

0.7

Ass.Generali

3.2

PROFITABLE INVESTMENT

Double-digit ROAC1

CAPITAL-ACCRETIVEwith significant revenue

contribution

REVENUES/EPS STABILIZER

READILY AVAILABLE

CAPITAL-SOURCEfor scale acquisitions

NO PRESSURE

FROM REGULATION(Danish Compromise extended)

255 264 280320 304


12%

35%

AG contribution to

Group revenues

AG contribution to

Group net profit

11% 11% 11%

FY16 FY19 BP23T

1) Fully loaded, i.e. without Danish Compromise

Principal Investing Section 1.e

Assicurazioni Generali

Book Value (as at June 2020, € bn)

AG revenues pro-rata €m

PI EQUITY EXPOSURE

AGENDA

1. MB Group profile

a) Group KPIs


c) Consumer Banking


e) Principal Investment

Annex


49

12M RESULTS BY DIVISION AS AT 30 JUNE 20

12m- June20 (€m)Wealth

ManagementConsumerBanking

CIBPrincipal Investing

Holding Functions

Group

Net interest income 271 948 271 (7) (55) 1,442

Net treasury income 7 — 78 16 38 136

Net fee and commission income 306 123 226 — 11 630

Equity-accounted companies — — — 304 — 304

Total income 584 1,071 575 313 (7) 2,513

Labour costs (237) (102) (141) (3) (117) (599)

Administrative expenses (214) (201) (135) (1) (56) (590)

Operating costs (451) (303) (276) (4) (173) (1,189)

Loan loss provisions (21) (325) (20) — (10) (375)

Provisions for other financial assets (1) — (4) (11) (6) (21)

Other income (losses) 2 (5) — — (64) (133)

Profit before tax 114 438 275 298 (259) 795

Income tax for the period (33) (141) (92) (3) 76 (191)

Minority interest (1) — (2) — (1)(4)

Net profit 80 297 181 295 (184) 600

Customer loans 13,184 13,037 18,644 — 1,820 46,685

RWAs 4,952 11,801 20,028 8,122 3,128 48,030

No. of staff 2,021 1,441 630 11 817 4,920

12m figures as at June 20 Annex 1

50

INVESTOR CONTACT DETAILS

Mediobanca Group

Investor Relations

Piazzetta Cuccia 1, 20121 Milan, Italy

Jessica Spina Tel. no. (0039) 02-8829.860

Luisa Demaria Tel. no. (0039) 02-8829.647

Matteo Carotta Tel. no. (0039) 02-8829.290

Marcella Malpangotto Tel. no. (0039) 02-8829.428

Email: [email protected]

http://www.mediobanca.com

MEDIOBANCA PROFILO DI GRUPPO · 2020. 12. 10. · Agenda 1. Il Gruppo Mediobanca a) Dati di Gruppo...

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