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BancaBanca GeneraliGenerali

Italian Financial Services ConferenceItalian Financial Services Conference““Growth: Hope or Reality?Growth: Hope or Reality?””

Milan, January 21, 2010

2UBS Conference - Milan, January 21, 2010

TodayToday’’s Agenda: s Agenda: ““Growth: hope or reality?Growth: hope or reality?””

… and much more than a hope for 2010 and beyond

A reality in 2009 for Banca Generali …

Closing remarks


Growth: hope or reality? A reality for Growth: hope or reality? A reality for BancaBanca Generali in 2009 Generali in 2009 ……..

2009 Year End results

Booming net inflows at €2,076 million, out of which more than €600 million from organic growth

Tax Amnesty was a major success for Banca Generali with about €2.1 billion assets repatriated through 4,000contracts, more than 50% of which arising from new clients

Strong yoy increase in AUM, reaching €22.2 billion (+17% yoy)

Total managed asset performance was an outstanding 13.2%, out of which the fund performance ofin house funds was 16%, well above the industry (6.4%)

Booming net inflows at €2,076 million, out of which more than €600 million from organic growth

Tax Amnesty was a major success for Banca Generali with about €2.1 billion assets repatriated through 4,000contracts, more than 50% of which arising from new clients

Strong yoy increase in AUM, reaching €22.2 billion (+17% yoy)

Total managed asset performance was an outstanding 13.2%, out of which the fund performance ofin house funds was 16%, well above the industry (6.4%)

2009: the best one in the 10 years history of 2009: the best one in the 10 years history of BancaBanca GeneraliGenerali

Strong net profit growth in the first 9 months (€45.6 million vs. €5.3 million, +765% yoy)

Costs well under control with an action plan to further decrease them in 2010

Strong net profit growth in the first 9 months (€45.6 million vs. €5.3 million, +765% yoy)

Costs well under control with an action plan to further decrease them in 2010

9M09 results: key achievements


Consolidated 9M09 Profit and Loss Account: main takeawaysConsolidated 9M09 Profit and Loss Account: main takeaways

Strong banking income driven bybuoyant commissions and tradingmore than counterbalancing theinterest income decrease linked to the short term interest rate trend

Cost management remains well under control with cost/income ratio down by 15 p.p. even after accounting for several one-off charges

EBITDA more than doubled yoy

Pre-Tax Profit increased by >5x

Higher provisions linked to more conservative assumptions and more intense recruiting

Net profit increased by 9x

•

•

•

•

•

•

(€ mil.) 9M 08 9M 09 % Chg

(reported) (reported)

Net Interest Income 43.4 38.6 -10.9%

Commission income 182.1 216.2 18.7%

Commission expense -92.5 -79.4 -14.1%

Net Commission 89.6 136.7 52.6%

Net income (loss) from trading activities -41.4 -39.5 -4.8%

Dividends 32.7 58.1 77.7%

Net Banking Income 124.2 194.0 56.1%

Staff expenses -38.2 -47.3 23.9%

Other general and administrative expense -56.4 -67.4 19.5%

Total costs -94.6 -114.7 21.3%

Cost /Income Ratio 71.5% 56.1% -15,4 p.p.

Other net operating income (expense) 5.8 5.9 2.8%

EBITDA 35.4 85.2 140.6%

Depreciation and amortisation -3.5 -4.1 14.2%

Operating Profit 31.8 81.1 154.7%

Net adjustments for impair.loans and other assets -5.5 -6.2 13.1%

Net provisions for liabilities and contingencies -17.4 -20.0 14.9%

Profit Before Taxation 9.0 55.0 513.0%

Direct income taxes -1.1 -7.4 n.m.

Tax rate 12.3% 13.5% 1,2 p.p.

Income/(losses) after tax on assets held for sales -2.6 -1.9 -26.1%

Net Profit 5.3 45.6 764.8%



Recurring fees representing 81% of total grossfees, even after accounting for variable commissions

Net interest margin held up well even in

a contest of falling interest rates

Strong top line growth with revenues increasing by almost 60% Strong top line growth with revenues increasing by almost 60% yoyyoy

Net Commissions

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

(€ m)

124.2

89.6(72%)

-4.5 (-4%)

194.0

38.6(20%)

136.7(71%)

9M08 9M09

20.0 (10%)-4.3 (-3%)

Breakdown of Net Banking Income

-1.3 (-1%)

43.4(35%)

+56%

(€ m)

9M08 9M09

182.2

128.9(71%)

30.1(16%)

20.0 (11%)

41.2(19%)

119.6(55%)

18.9 (9%)

216.2

3.1 (2%)

36.4(17%)

+19%

Breakdown of Gross Commission

Management fees (qoq change)

2Q09 3Q09

4042

(€ m)

4Q08 1Q09

3437

+9%+8%

+5%

Management FeesFront Fees

Banking Revenues

Performance Fees


Management feeskeep on growing

Management feeskeep on growing


Cost management remains tight, with a further decrease in costs Cost management remains tight, with a further decrease in costs expected in 2010 and beyondexpected in 2010 and beyond

(€ m)

98.1

5%

118.8

40%(47.3)

57%(67.4)

G&A ExpensesStaff

39%(38.2)

9M 08 9M 09

Depreciation and amortisation

4% (3.5) 3% (4.1)

57%(56.4)

Operating Costs Breakdown

109.0

41%(44.7)

55%(60.2)

4% (4.1)

9M 08 LfL

+9%


Outlook for next years

9M09 costs were affected by €7 million of one-off charges due to the BSI merger, IT projects and the launch of the new website

9M09 costs were affected by €7 million of one-off charges due to the BSI merger, IT projects and the launch of the new website

For 2010 a decrease in operating costs

is expected thanks to a number of cost

cutting actions:

merger of BSI Italia into Banca Generali

streamlining of distribution and

IT processes

Significant operative cost leverage for next

years thanks to the sharp asset growth and

tough cost control

For 2010 a decrease in operating costs

is expected thanks to a number of cost

cutting actions:

merger of BSI Italia into Banca Generali

streamlining of distribution and

IT processes

Significant operative cost leverage for next

years thanks to the sharp asset growth and

tough cost control

Outlook for next years


Profitability ratios sharply improving compared to last yearProfitability ratios sharply improving compared to last year

AUM profitability improved yoy both on a reported and on a pro-forma basis

Sharp yoy increase in the contribution to AUM profitability from commissions (+12 bps on 9M08)

The Cost/Income ratio is very near to the long-term target of 50%

AUM profitability improved yoy both on a reported and on a pro-forma basis

Sharp yoy increase in the contribution to AUM profitability from commissions (+12 bps on 9M08)

The Cost/Income ratio is very near to the long-term target of 50%

Cost/Income Ratio

9M08 9M09

AUM profitability from recurring commissions

-15 p.p.

71.5%

56.1%

Performance Fees

AUM Profitability

AUM recurring profitability from interest income

1.35%

1.75%

9M08reported

9M09

+40 b.p.

1.08%1.47%

1.52%

9M08 pro-forma*

1.46%

0.25% 0.32% 0.27%

9M08reported

9M09

1.20%

1.52%

9M08 pro-forma*

1.18%

0.32% 0.27%

(*) excluding Simgenia and corporate assets, including Banca del Gottardo Italia



Quality of net inflows sharply improved in 2009 both in terms ofQuality of net inflows sharply improved in 2009 both in terms of business mix and volumesbusiness mix and volumes

4424

(€ m)

FY08

1,352

* Mutual Funds, Managed Portfolio and Life Insurance

Net Inflows in Managed Assets*

FY09

Net Inflows in new strategic products

918

590

(€ m)

272 o/w

2009 Net Inflows

1.780


686 24

(€ m)

FY08

2,076

FY09

Organic net inflows at €612 million, while inflows from 2009 tax amnesty at €1,464m

Organic net inflows at €612 million, while inflows from 2009 tax amnesty at €1,464m

642

(€ m)

FY08

724

* Security deposits and current account

Net Inflows in Administered Assets*

FY09

2009 administered assets were affected by asset repatriated and are now ready to be transformed into managed products which will significantly increase profitability in 2010

2009 administered assets were affected by asset repatriated and are now ready to be transformed into managed products which will significantly increase profitability in 2010

About €590 million refer to Lux-based Sicav, €805 million to life policies and the remaining by discretionary accounts

About €590 million refer to Lux-based Sicav, €805 million to life policies and the remaining by discretionary accounts


2009 total assets sharply increased to 2009 total assets sharply increased to €€22.2 billion, +16.8% 22.2 billion, +16.8% yoyyoy

4.8 (26%)

2.6 (14%)

5.1 (27%)

1.8 (9%)

19.0

Mutual Funds

Life Insurance Current Accounts Securities

FY08

Banca Generali Assets Breakdown

FY09 (*)

(€ bn)

4.7 (25%)

22.2

5.3 (24%)

3.0 (14%)

5.8 (26%)

2.3 (10%)

Portfolio Management

2008 YE FY09

2,980

4,219(€ m)

Lux-based Assets managed by GFM

42%

3,255

2,249

964

731

BG Selection SicavBG Sicav

+16.8%

5.8 (26%)


(*) preliminary estimates

A large amount of cash and securities coming from the tax shield will be converted into managed assets in 2010

A large amount of cash and securities coming from the tax shield will be converted into managed assets in 2010

45%

Total assets increased by 16.8% yoyto €22.2 billion, with a 8.3% averageperformance excluding life maturities

Total managed assets (incl. insurance)were up by 18% yoy to €14.6 billion,representing 66% of total assets(vs. 65% in 2008)

Lux-based assets grew by 42% yoy,driven by FoFs (+45% yoy)


InIn--house funds continue to deliver an excellent performance, well ahouse funds continue to deliver an excellent performance, well above industry averagebove industry average

42%

Banca Generali In-House Funds

- Weighted Investment Performance -

18.5%12.9%

11.6%

16.0%

BG SGRBG Selection Sicav BG Sicav In-House FundsWAP

Banca Generali in-house funds/SICAVs posted a WAP of 16% in 2009, well above the Italian industry averageof 6.4%

Banca Generali in-house funds/SICAVs posted a WAP of 16% in 2009, well above the Italian industry averageof 6.4%

AUM (€m)2.929(**) 703 964 4.596

(*) Italy General Index; (**) €3.255 million when including Fund of Funds managed by Third-Party Asset Managers

960 bps extra performance vs.Industry*

Industry 6.4%

…… and more than a hope for 2010 and beyondand more than a hope for 2010 and beyond


TodayToday’’s Agenda: s Agenda: ““Growth: Hope or reality?Growth: Hope or reality?””



Closing remarks


Large room to acquire new clients and possibility to exploit turmoil in the competitive

scenario

Comprehensiveproduct offerand excellent performance

delivery

High recognitionand reputation,

further enhanced byrecent tax shields

High client satisfaction,

highly committednetwork

UNIQUE GROWTH OPPORTUNITY FOR BANCA GENERALI TO ACQUIRE NEW CLIENTS AT ZERO COST


Increasing AUMprofitability

Cost reduction

Exploiting growth potential fromnew high-worth customersacquired with 2009 Tax Amnesty

Profiting from 2010 Tax Amnesty

Take advantage ofexcellent recruitingopportunities

EXCELLENT TREND IN THE KEY BUSINESS DRIVERS

GROWTH IS MUCH MORE THAN A HOPE FOR 2010 AND BEYOND


Italian market has excellent room for qualified competitors ablItalian market has excellent room for qualified competitors able to provide a real e to provide a real ““financial advicefinancial advice””

CAGR4.8%

(€ bn)

2,451

3,072

-328

3,374

5,715

-805

5,195

8,284

Breakdown of the Italian Household Assets

Source: Banca d’Italia, Assoreti

Only 22% of totalfinancial assets are managed

1998 2008

Financial Assets Real Assets Financial Liabilities

93% of total financial assetsis held by retail banks,

and only 7% by FA networksand by private banks93%

30,20%

5,40%

13,30%25,70%

4,80%

17,10%

3,50%

Current accounts; postal accounts and cash

Government Bonds Bonds

Equities, Participations and Foreign Securities

Mutual Funds Insurance reserves

Other

7%



Gap between the fastest growing networks and the others is widenGap between the fastest growing networks and the others is widening: preparing for the ing: preparing for the next phase of consolidationnext phase of consolidation

(€ m)

220

9321,274

1,491

4,964

GruppoFideuram

Banca Mediolanum

Gruppo Banca

Generali

Finanza& Futuro

Source: Assoreti

“Promotori” ranking by Net Inflows (Jan-Nov 2009)“Promotori” ranking by Net Inflows (Jan-Nov 2009)

1,010

FinecoBank Azimut

714

283441

Alto AdigeBanca

GruppoCredem

353

MPS

276

Apogeo Consulting Banca Sara

184

Banca IPB

158

-145

Banca CreditoFirenze

Others

242

UBIBanca

450

Credit Suisse

(€ bn)

3.3

20.225.9

30.0

64.9

GruppoFideuram

GruppoMediolanum

Gruppo Banca

Generali

Finanza& Futuro

Source: Assoreti

“Promotori” ranking by AUM (Sept 2009)“Promotori” ranking by AUM (Sept 2009)

21.9

FinecoBank Azimut

14.34.77.6

GruppoCredem

5.0

MPS

3.4

BancaNetwork Banca Sara

2.1

Banca IPB

1.0

Others

3.4

UBIBanca

10.0

Credit Suisse

AllianzBank



Fonte: Lombard, January 2010

€ bn

After the crisis and the tax amnesty, the private banking busineAfter the crisis and the tax amnesty, the private banking business is deeply transformedss is deeply transformed

Private Banking ranking by AUM (June 2009) Private Banking ranking by AUM (June 2009)

Private banking Private banking units of traditional retail banks


Excluding Private Banking divisions of retail banks,very few competitors have a proper size

Foreign private banks are facing difficulties

Banca Generali Private Banking (ex BSi Italia) is one of the best positioned companies in the

private banking arena

65,0

36,5

26,023,6 21,8

19,515,1

12,6 12,6 12,5 10,8 9,9 9,8 8,9 7,3 7,1 6,0 6,0 4,6 4,4 3,5 2,9 2,5 2,3 2,0 2,0 1,9 1,6

65,0

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

Uni

cred

it

Inte

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anpa

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Ubi

Ban

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Ban

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Ubs

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Bnp

Par

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term

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Cre

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sper

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7.9


Discretionaryaccounts for top clients

12,9%12,9%

18,5%18,5%

20,5%20,5%

11,6%11,6%

7,2%7,2%

Lux sicavBG Sicav

Italy-based fundsBG Sgr funds

Lux Fund of funds:BG Selection Sicav

Discretionary AccountsGPM Target (1)

Life insuranceproducts, all with

guaranteed capital

5,3%5,3%

Excellent performance delivery in 2009 throughout all current prExcellent performance delivery in 2009 throughout all current product rangeoduct range

2009 performance by product category2009 performance by product category

(1) discretionary accounts with capital protectionNote: administered assets (current accounts and security deposits) not included

18,5%18,5% Third-party funds



4 0 0

5 0 0

6 0 0

7 0 0

8 0 0

9 0 0

1 . 0 0 0

1 . 1 0 0

1 . 2 0 0

1 . 3 0 0

Launch of discretionaryaccount with capital

protection( ),

Lux-based flexible and total return Sicav

Launch of discretionaryaccount with capital

protection( ),

Lux-based flexible and total return Sicav

20072007 20082008 20092009 20102010

Major push of a traditional policy

and of a capital protected

one ( ), new total return FoF

( )

Major push of a traditional policy

and of a capital protected

one ( ), new total return FoF

( )

Traditional policy investing in

corporate bond,

launch of new FoFmanaged by third-

party

Traditional policy investing in

corporate bond,

launch of new FoFmanaged by third-

party

2005-062005-06

Launch of twoinsurance products

with capital protection

( ) and capital guarantee( )

Launch of twoinsurance products

with capital protection

( ) and capital guarantee( )

Insurance: new policy investing

more in equity and corporate

and

more managedproducts

Insurance: new policy investing

more in equity and corporate

and

more managedproducts

Investment strategy proved very successful in the latest 5 yearsInvestment strategy proved very successful in the latest 5 years, allowing growth with , allowing growth with both existing and new customers both existing and new customers

RialancioRialancio

MSCI World Index

Introduction of products withcapital protectionor guarantees

Early understanding of market crisis: focus on

protection and guarantees, exit from equity products

Defensive bias enhanced, with selective investments in total return and flexible funds,

protected capital and life insurance

Still defensive asset allocationwith excellent seizing of the market upside, fund of funds, flexible and

total return funds

The 2009 strategy is confirmed



BancaBanca Generali distribution networks well above peers in terms of sizGenerali distribution networks well above peers in terms of size and ready to e and ready to seize new market challengesseize new market challenges

Source: Assoreti – September 2009

34.828.2

17.6

12.9 11.7 10.1 9.19.4 8.5 8.0 7.9 6.86.1 5.5 5.3

0.0

10.0

20.0

30.0

40.0

CRED

IT S

UIS

SE I

TALY

BA

NC

A G

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PR

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BAN

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GR

UP

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BA

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AZIM

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SAN

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UBI

BAN

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AVER

AGE

9.4

(€ m)

(*) Both stock option plan proposals will be submitted by Banca Generali BoD before next Ordinary Shareholders meeting

“Promotori” ranking by size (AUM/financial advisor)“Promotori” ranking by size (AUM/financial advisor)

(n°)

FA Privatebanker

RM

1,281233

57

Network SplitThe extension of existing stock-optionplan and the issue of a new one based

on 2009-10 net inflows further increased network commitment



Enhancing AUM profitability levels through Asset transformationEnhancing AUM profitability levels through Asset transformation

Traditional policy linked to a newsegregated fund investing up to 50% of its assets

in corporate bonds and equity

Retail FundsRetail Funds

Life insurance policies close toLife insurance policies close tomaturity and maturity and RialancioRialancio policiespolicies

Administered AssetsAdministered Assets


32 lines of Fund of Funds: 23 managedin-house and 9 by primary international asset

managers€2.5bn assets€2.5bn assets

€2.5bn assets€2.5bn assets

€7.6bn assets€7.6bn assets

Switch from lower profitability products … … to more value-added products for clientsand with higher margin for the company

Discretionary account with either capital protection, total return or fiduciary


2009 Tax Shield proved an excellent growth opportunity for 2009 Tax Shield proved an excellent growth opportunity for BancaBanca Generali, with more Generali, with more than 2 billion assets repatriatedthan 2 billion assets repatriated

Assets repatriated by Banca Generali (Oct/Dec 2009)

>€1.5bn

€2.1bn

Already in- house Total Banca Generali repatriated assets

Higher than expected share of repatriated assetsalready in-house (€1.5 billion at the end of Decemberout of total €2.1 billion expected)

37% of repatriated assets already invested in managedproducts (the life policy BG Valore, the Lux-based FoFBG Selection Sicav, discretionary accounts) with thetarget of reaching a 50-60% share in 2010

More than 4,000 contract signed, out of which morethan 50% by new clients

More than 2,000 new high worth customers acquired, with high growth potential



2010 Tax Shield is only for specialists: 2010 Tax Shield is only for specialists: BancaBanca Generali is definitively one of themGenerali is definitively one of them

New road-shows for registered accountants inkey centers (Milano, Torino, Bologna, Padova)to update on changes in tax/legal features

Specific training for the distribution network

A 20 people operative task force for operations,legal support and compliance

A dedicated advertising campaign on all mainItalian newspapers and magazines

Cooperation with some of the most prestigiousaccountant and tax consultants (StudioSimonelli, Studio Arquilla)



Luxembourg

Generali Fund Management well in line with development plansGenerali Fund Management well in line with development plans

Asset management teams already fully

installed and managing nearly €10bn

About €20bn to be concentrated

in GFM by mid 2010

Started the activities for selling

unit-linked and variable annuities with

GFM underlying assets all over Europe

Excellent short-term opportunities

arising from the starting cooperation

with GUOTAI (one of the top 5 Chinese

asset managers, a 30% stake of which

was bought in 2009 by Generali)

ONGOING OPERATIVE ACTIONS

GFM was officially establishedon September 9, 2009,

merging BG InvestmentLux and GeneraliInvestment Lux


51%51% 49%49%


TodayToday’’s Agenda: s Agenda: ““Growth: Hope or reality?Growth: Hope or reality?””



Closing remarks


Closing RemarksClosing Remarks

Assets Developmentorganic growth both on

existing clientsnew clients

exploiting of the 2,000 new customers acquired with 2009 Tax Shieldrecruitingcapitalizing on the excellent performance delivered to our clients in the last few years

A simple, yet very handsA simple, yet very hands--on growth strategyon growth strategy

Banca Generali does not predict how financial markets will behave. Banca Generali will continue operating, as since the beginning, with the same strategy:

CAPABLE TO GROW IN A STEADY WAY, IN ANY MARKET CONDITIONSCAPABLE TO GROW IN A STEADY WAY, IN ANY MARKET CONDITIONS

Revenues growthrevenues increase reflect growth in AUMAUM profitability enhancement full exploitation of the new GFM venture (from end 2010 and beyond)

Full cost control and consequently significant operating leverage

Profiting from the undisputable brand leadership


Giuliana PagliariInvestor Relations Officer

Tel +39 02 6076 5548

E-mail [email protected]: www.bancagenerali.com

Giuliana PagliariInvestor Relations Officer

Tel +39 02 6076 5548

E-mail [email protected]: www.bancagenerali.com

Investor RelationsInvestor Relations


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.

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