03/24/2009
1.51 p.m.
FY 2008 Results
Assets under administration: 29,559 million euro, -15%
Net inflows: positive at 2,499 million euro
Adjusted net income: 131 million euro, -38%
Dividend proposal: 15 eurocents per share
Dividend balance to be paid: 6.5 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, 2008.
As a reminder, on November 12, with reference to the operation in favour of customers holding index-linked policies with Lehman Brothers bonds underlying, the two major shareholders - the Doris Group and Fininvest S.pA. - have waived their share of the interim dividend, and additionally they have financed a capital injection, which along with the aforementioned dividend waiver, covers the burden pertaining to the Mediolanum Group, safeguarding the shareholders' equity and leaving the minority shareholders unaffected. The total capital injection by the two major shareholders comes to a total of 120 million euro.
Given the nature of the capital injection, which brought the shareholders' equity to the exact same value that it would have been if the 'Lehman Brothers' operation had not taken place, and in order to allow for a more meaningful comparison with data from the previous year, an
adjusted version of the 2008 results is presented. The adjusted data do not take into account the effect of the Lehman Brothers operation (except where otherwise indicated).
The Board of Directors resolved to propose to the shareholders a distribution of a dividend of 15 eurocents per share relative to the net income for 2008. Considering the interim dividend of 8.5 eurocents per share already distributed in November 2008, the Board of Directors will propose the distribution of a final dividend of 6.5 eurocents per share at the General Shareholders' Meeting, payable as of May 21, 2009 (coupon #18, ex-dividend date May 18, 2009).
The General Shareholders' Meeting for the approval of the financial statements will take place on April 23, 2009 at 2:30 p.m., first call, and, if needed, on April 24, 2009 at the same time on second call, in Basiglio Milano 3, Palazzo Meucci.
The
CONSOLIDATED GROUP RESULTS registered a 38% decrease with respect to the previous year, due to the dismal trend in the financial markets during the entire year and particularly in the last quarter, which had an impact on commissions from managed assets.
However, the Company states that that it doesn't have any so-called toxic securities among its assets.
In light of the aforementioned:
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Adjusted Net Income for the year was at 131 million euro, a decrease of 38% compared to the result for 2007. Statutory Net Income, including the effects of the 'Lehman Brothers' operation, came to 24 million euro. |
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Profit before Tax was at 165 million euro, a decrease of 40%. |
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Assets under Administration totalled 29,559 million euro, down 15% compared to December 31, 2007. |
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Net Inflows, on the other hand, was significantly positive at 2,499 million euro. |
The same considerations made for the Group can also be applied to the
DOMESTIC MARKET where the following results were achieved (Net Income and Assets include Banca Esperia for the 48.5% share pertaining to the Group):
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Net Income was at 144 million euro, with a decrease of 31% with respect to the previous year. |
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Assets under Administration declined 13% with respect to December 31, 2007, totalling 27,853 million euro. |
It should be highlighted that Banca Mediolanum registered significant business progress.
In particular,
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Net Inflows were positive at 2,610 million euro, an increase of 55% compared to the previous year. In contrast to the rest of the market, Net Inflows into Managed Assets were very positive at 991 million euro, up 39%. |
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Life Gross Premiums Written totalled 2,667 million euro, down 21% with respect to 2007. This result is due to substantially stable new business in Recurring Premiums, (224 million euro, -2%), and to a 38% reduction in Single Premiums, coming in at 1,207 million euro. |
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The number of Licensed advisors remained stable: 5,077 (+1%), with an additional 774 non-licensed advisors waiting to take the licensing exam.
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As at December 31, 2008, there was a total of 1,085,000 customers, of which 915,000 Primary Account Holders, 21,000 more than at December 31, 2007. |
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There was a total of 565,500 bank accounts as at December 31, 2008, an increase of about 31,800 accounts with respect to December 31, 2007, +6%. |
Highlights in particular with respect to
Banca Esperia:
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Net Income was at 4 million euro (2 million euro for Mediolanum's share), a decrease of 86%, mainly due to the reduction in assets and the absence of performance fees. |
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Assets under Administration fell 14% with respect to December 31, 2007, reaching 8,065 million euro (3,912 million euro for Mediolanum's share). |
With reference to the
FOREIGN MARKETS:
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The Net Economic Result was a negative 13 million euro. |
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Assets under Administration totalled 1,706 million euro, down 37% with respect to December 31, 2007. |
Embedded Value, relating to all the Domestic Market businesses (excluding Banca Esperia) and the Spanish market excluding the banking business, registered a value of
2,544 million euro (-20%) at December 31, 2008.
In particular, the
Value added by New Business was positive at
191 million euro.
In an effort to provide more complete disclosure about the economic results as at December 31, 2008, we have attached the segment report detailing economic 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, 2008.
A presentation in English of the information contained herein will be available at Borsa Italiana.
The Financial Statements as at December 31, 2008 will be available 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..
The Officer responsible for preparing Mediolanum S.p.A accounting documents, Luigi Del Fabbro, declares 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.
Attachments:
Balance Sheet as at December 31, 2008
Reclassified Income Statement as at December 31, 2008
Segment Report as at December 31, 2008
The Board of Directors also approved the third edition of the Social Report of the Mediolanum Group. For the past two years, 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.
Basiglio - Milano 3 City, March 24, 2009
