03/18/2008
13.30 pm
FY 2007 Results
Assets under administration: 34.6 billion euro, +4%
Gross inflows: 9,649 million euro, +19%
Net inflows: 2,500 million euro, +2%
Net income: 212 million euro, -5%
Embedded value: 3,164 million euro, +1%
New business value: 389 million euro, +42%
Dividend proposal: 20 eurocents per share
Dividend balance to be paid: 11.5 eurocents per share
The Board of Directors of Mediolanum S.p.A. met today in Basiglio (MI) and approved the Consolidated and the Separate Financial Statements as at December 31, 2007.
The Board of Directors resolved to propose to the shareholders a distribution of a dividend of 20 eurocents per share relative to the net income for 2007, in line with previous year.
Considering the interim dividend of 8.5 eurocents per share already distributed in November 2007,the Board of Directors will propose to the shareholders a distribution of a final dividend of 11.5 cents per share, payable as of May 22, 2008 (ex-dividend date May 19, 2008).
The General Shareholders’ Meeting for the approval of the financial statements will take place on April 22, 2008 at 2:30 p.m., first call, and, if needed, on April 23, 2008 at the same time on second call, in Basiglio Milano 3, Palazzo Meucci.
With reference to the
GROUP RESULTS, we would like to highlight in particular:
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Net income was at 212.2 million euro, a decrease of 5% compared to the results for previous year. Profit before Tax was at 276 million euro, a decrease of 3%.
It should be noted that as a result of the performance of stock and ForEx markets, in 2007 performance fees were 26% lower than in the prior year. |
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Net of performance fees, Profit before Tax increased by 6% compared to December 31, 2006, in particular thanks to the good performance reported in the fourth quarter. |
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Assets under Administration, grew by 4% with respect to December 31, 2006 totalling 34,598 million euro.
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Inflows registered an increase with respect to the same period last year. In particular, Gross Inflows came in at 9,649 million euro, increasing by 19%, while Net Inflows were at 2,500 million euro, up 2%. |
With reference to the
DOMESTIC MARKET (Net Income and Assets include Banca Esperia for the 48.5% share pertaining to the Group), the following results were achieved:
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Net Income was at 209 million euro, with a decrease of 6% with respect to the previous year, due to the same reasons that affected the results at the Group level. |
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Assets under Administration grew 5% with respect to December 31, 2006, totalling 31,890 million euro. |
Moreover, excluding
Banca Esperia:
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Life Gross Premiums Written came to 3,389 million euro, +5% with respect to 2006.
Life New Business increased 6% (2,187 million euro) versus a market decline of 7%.
Specifically, Recurring Premiums grew 7% to 233 million euro, and Single Premiums increased by 6%, to 1,955 million euro. |
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Asset Management registered Gross Inflows of 3,103 million euro, with an increase of 21% compared to the previous year. |
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Net Inflows came in at 1,689 million euro, a decrease of 7% with respect to the previous year.
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At December 31, 2007, the Sales Network of Banca Mediolanum totalled 6,382 Family Bankers.
Growth was particularly strong in the number of licensed advisors that amounted to 5,040 growing 26% compared to December 31, 2006. |
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At December 31, 2007, there was a total of 1,061,000 customers, of whom 894,000 primary account holders, an increase of 54,000 compared to year end 2006. |
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There were a total of 533,700 bank accounts at December 31, 2007, an increase of 67,700
accounts with respect to December 31, 2006, +15%. |
Highlights in particular with respect to
Banca Esperia:
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Net Income was at 28.6 million euro (13.9 million euro for Mediolanum’s share), an increase of 73%. |
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Assets under Administration grew 32% with respect to December 31, 2006, reaching 9,318 million euro (4,519 million euro for Mediolanum’s share). |
With reference to the
FOREIGN MARKETS:
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The Net Economic Result increased from 0.7 million euro in the previous year to 3.1 million euro.
The business in Spain through Fibanc Mediolanum contributed 7.1 million euro to the Consolidated Net Income, an increase of 5% compared to 2006. |
Embedded Value, as calculated by Tillinghast Towers Perrin, and relating to all the Domestic Market businesses (excluding Banca Esperia) and the Spanish market excluding the banking business, increased to
3,164 million euro at December 31, 2007.
The
Value of New Business came in at
389 million euro, an increase of
42% with respect to the previous year, and marked an all-time high.
In an effort to provide more complete disclosure about the results as at December 31, 2007, we have attached the segment report for the year detailing income statement data, reclassified to reflect the
criteria used by the Mediolanum Group. This reclassified segment report is not subject to audit by the independent auditors, who moreover, haven’t yet finished the audit of the consolidated and separate financial statements as at December 31, 2007.
A presentation in English of the financial information contained herein will be available at Borsa Italiana.
The Annual Report as at December 31, 2007 and related documents will be available in accordance within the time requirements set by article 2433 bis of the Italian Civil Code at the company’s Registered Office in Basiglio - Milano 3, Palazzo Meucci - Via F. Sforza, on the website
www.mediolanum.it and at Borsa Italiana S.p.A.
Attachments::
Balance Sheet as at December 31, 2007
Income Statement as at December 31, 2007
Segment Report
The Board of Directors also approved the second edition of the Social Report of the Mediolanum Group. Since last year, this document has been published alongside the Annual Report. The Social Report expands on the intangible aspects of corporate activities and their ethical, social, environmental and safety impacts with the aim of providing better, deeper insight into the work, commitment and values of the Group. The Social Report also serves the purpose of highlighting Mediolanum’s contribution to sustainable development through concrete practices in the relationships with the main internal and external stakeholders.
The Officer responsible for preparing Mediolanum S.p.A accounting documents, Luigi Del Fabbro, certifies that, in compliance with the requirements of the second paragraph of section 154 bis of the Consolidated Finance Act, the financial information contained herein reflects the accounting entries, records and the books.
It is also announced that the Board of Directors of Mediolanum S.p.A. at the meetings held on March 4 and 18, 2008 approved the following guidance on the application of certain recommendations set out in the Code of Conduct for Listed Companies in relation to the appointment of corporate officers.
- Restrictions on the number of positions considered compatible with directors’ ability to effectively fulfil their duties
I) an executive director should not:
i) serve as executive director of another Italian or foreign listed company, or financial, banking or insurance company;
ii)serve as non-executive director or statutory auditor (or member of any other control body) in more than five of the companies above;
II) a non-executive director, in addition to the position held with the company, should not:
i) serve as executive director in more than three of the companies above, or as non-executive director or statutory auditor (or member of any other control body) in more than five of the companies above;
or
ii) serve as non-executive director or statutory auditor (or member of any other control body) in more than eight of the companies above.
Any multiple positions held within the same Group of companies – that have the same main shareholder/s and/or are controlled by the same parent – shall be considered to be a single position.
The Board of Directors reserves the right to make different decisions which will be duly disclosed in the annual report on corporate governance.
- Application of the independence requirements for directors to the members of the Board of Statutory Auditors
It was decided to apply all the independence requirements for directors set forth in section 3 of the Code of Conduct for Listed Companies (cf. www.borsaitaliana.it/documenti/societàquotate/Governance Società quotate) also to the members of the Board of Statutory Auditors, beginning from the expiration of the current Board of Statutory Auditors.
Basiglio - Milano 3 City, March 18, 2008
