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ESG INVESTOR PRESENTATIONITALIAN SUSTAINABILITY CONFERENCE 2020
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
2
BANCA GENERALI’S RESPONSE TO COVID-19THREE MAIN LINES OF ACTION
Smart working allowed 92% of those employees that can work from home to do so by March 23rd, ensuring 100% of business continuity, within 2
weeks of official lockdown.
Ongoing health information delivered with Covid-19 newsletter and video messages from CEO/HR
Dedicated health protection phone line and medical assistance available for all employees, strict health measure in place in any building/ branch
Health and safety of all our Employees, Financial Advisors, Clients and their families
Focus on core business: protecting the wealth of our clients Business continuity focused on proactive client engagement leveraging on digital tools (digital collaboration, home & mobile banking) and
enhanced contact center operations
Ongoing communication on markets, investment services and products
New product initiatives to manage growing liquidity in a more efficient way for both clients and bank
Dividend payment postponed and to be reviewed after October 1st following regulator recommendations.
Actions to support Italy, its local Communities and its Healthcare System Launch of the "Italianonsiferma" initiative, an asset-backed notes issuance aimed at supporting Italian companies and SMEs by bringing
closer the private savings of its professional clients to the real economy
New €140m healthcare receivable securitization program to provide liquidity to companies in the health care sector
€1m donation from Banca Generali and its employees to the Italian healthcare and Red Cross
3
FOCUS ON OPERATIONS DURING LOCKDOWN
Assets transferred (# operations)
IN 5,977 (same as in Mar./Apr. 2019)OUT 860 (-11% vs. Mar./Apr. 2019)
2 out of 3 Clients completed operations digitally
1 out of 3 Clients completed operations paperless with
registered phone calls, mail authorizations
9 out of 10 FAs completed operations digitally
10 out of 10 FAs completed their training programs
digitally
Clients
FAs Operations
Total No. of operations in funds/SICAVs
IN 39,689 (+2% vs. Mar./Apr.2019)OUT 26,101 (-25% vs. Mar./Apr. 2019)Switches 13,287 (+41% vs. Mar./Apr. 2019)
4
2019 DIVIDEND PROPOSAL TO AGMCONFIRMED BUT PAYMENT POSTPONED
New BoD
2019 Dividend
(DPS)
proposal to AGM
€1.55 DPS payment date
On 30 March 2020, Banca Generali decided to responsibly comply with the new recommendations issued by
the Supervisory Authorities in light of the exceptional market context caused by the outbreak of COVID-19
European Central Bank issued on 27 March 2020
Bank of Italy issued on 27-31 March and on 1 April 2020
Thus, Banca Generali revised its BOD 2019 Dividend proposal to AGM by postponing the date of dividend
distribution subject to prior verification of a new set of conditions
(i) ECB/2020/19
recommendation;
(ii) compliance with supervisory
regulations and guidelines;
(iii) TCR> SREP minimum
requirements+ buffer
DPS distribution subject to
20.05.20 15.10.20 31.12.20
€0.30 DPS payment date
20.01.21 15.01.21 31.03.21
5
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
6
BANCA GENERALI IN A NUTSHELLKEY FACTS AND FIGURES
FAs Network
NOTES: 1) data as of 16 June 2020, source Bloomberg
Our VISION is to be the first Private Bank, unique by Value of
service, Innovation and Sustainability
Our MISSION is to be trusted advisors to our Clients, remaining
by their side through time, to build and take care of their life
projects
WM
NetworkPB
Network
FP
Network
Banking and
Wealth Management
Services
Asset
ManagementFiduciary
Services
COMPANY STRUCTURE VISION AND MISSION
KEY COMMERCIAL NUMBERS, 2019 KEY FINANCIAL NUMBERS, 2019
Advisors 2,040
Clients ~301k
Branches 46
Employees 950
AUM€69
bnTCR 16.1%Net Profit
€272
m
Market Cap€3.5
bn1 ROE 32.9% Dividend yield 1 6.8%
7
BG AMBITIONSFROM 2019-21 BUSINESS PLAN
To create a new long term growth engine
by selectively expanding our geographical
footprint
To consolidate our leading position in
empowering the best Financial Advisors
(FAs) in the Italian market
To be the Clients’ first choice for quality of
professionals, protection and value of
service as well as state-of-the-art digital
presence
1
2
3
Empowering FAs
Clients’ first choice
International aspiration
8
DISCONTINUITY
IN THE
CONTINUITY
2019/2021 BUSINESS PLAN GUIDELINESCLEAR STRATEGIC AMBITIONS TO BEAT EXPECTATIONS
• Foster a culture of talent, sustainability and
diversity & inclusion
• Strengthen open banking approach and international
partnerships
• Focus on protection, lending and services to
entrepreneurs
• Accelerate on cross-fertilization and teams
• Strengthen direct Client touchpoints
• Serving the Italian Client through an international approach
while selectively expanding abroad INTERNATIONAL ASPIRATION
DIGITAL MINDSET
PEOPLE & ORGANIZATION
WM APPROACH
EXCELLENCE OF FAs
BRAND
9
70%-80% pay-out ratio
DPS (1.25€) set as a floor
Cumulated Net Inflows >14.5 bn/€
Core Net Banking Income1 ≥63 bps
Core Operating Costs2: 3%- 5% CAGR
Total Assets 76-80 bn/€
2021 Targets
BUSINESS RESULTSON TRACK TO FINANCIAL TARGETS
NOTE: 1) Guidance based on Group perimeter including recent acquisitions and foreign expansion; core net banking income computed as net banking income excluding performance fees and trading gains; margins based on average assets on an annualized basis; 2) Core operating costs computed as total operating costs ex-sales personnel expenses, current perimeter
2019 Results
5.1 bn/€
69.0 bn/€
67 bps
4.8%
78% pay-out
DPS 1.85€
Dividend pay-out
Dividend per share
Asset growth
Sustainable
profitability
Shareholders’
remuneration
Score
Legend: On track to 2021 target
Objective KPIs
10
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
11
SUSTAINABILITY IS FULLY EMBEDDED IN OUR STRATEGYKEY DATA TRENDS
Note 1: Financial data refers to FY 2019 unless stated otherwise
Board
2.2%2.7%
7.2%
2017 2018 2019
ESG on Managed Assets, %
ESG Growth
ESG Ratings
B
BB BB
apr-17 giu-18 ott-19
MSCI Scoreson a scale from CCC to AAA 44%
4/9 Women on Board (vs. Italy’s 1/3 legal
requirement)
33%
35%34%
2017 2018 2019
Diversity: Women
Managers & Executives, %
Gender Diversity
748.8 729.5
890.8
2017 2018 2019
Global Value Added, €m
Financials1
11.8%12.2%
14.1%
2017 2018 2019
Italian Market Share
Market Resilience
Employee Training
21
39
48
2017 2018 2019
Training hours, thousands
1,661
1,2641,404
2017 2018 2019
GHG Emissions, tCO2eq
Environmental Impact
12
VISION, MISSION & VALUESINTEGRATING SUSTAINABILITY IN OUR BUSINESS
VISIONTo be the No. 1 private bank,
unique by value of Service,
Innovation and Sustainability
MISSIONTrusted professionals always by
the Customers’ side, developing
and looking after their life plans
LIVE THE COMMUNITY
We are proud to belong to a Group that
operates throughout the world with a major
focus on social responsibility matters. We
feel at home in all markets.
DELIVER ON THE PROMISE
We want to build a long-term relationship of
trust with people: employees, customers
and stakeholders. The objective of our work
is to improve our customers’ lives, turning a
promise into reality.
VALUE OUR PEOPLE
We give value to people, promote diversity
and invest in encouraging ongoing learning
and professional growth to create an
environment that is transparent,
collaborative and accessible to all.
BE OPEN
We are curious, proactive and dynamic
people with open, diverse minds that want
to look at the world from another viewpoint.
BANCA GENERALI VALUES ARE IN LINE WITH THOSE OF THE GENERALI GROUP
13
OUR SUSTAINABILITY APPROACHSUSTAINABILITY IS THE ONLY PATH TO GROWTH
Our sustainability strategy is characterised by:
InnovationWe invest in innovation to create progress and
meet our customers’ needs. Our confidence in
technology has led us to create a service
ecosystem that measures up to international
best practices.
Social ResponsibilityWe support a system where all can
progress, with the aim of creating long-
lasting value. We participate in welfare,
cultural and sporting initiatives, with an eye
to sustainable growth in the long term.
TransparencyIntegrity and impartiality in the Internal Code
of Conduct of Banca Generali and Code of
Conduct of Generali Group. Trust is our most
valuable asset.
Sustainable growth over time, with entrepreneurial actions aimed at achieving stable
and satisfactory long-term economic and commercial results, minimising risks related
both to the volatility of the economic-financial scenario, and the inadequate planning of
objectives, due to short-term needs;
People enhancement, encouraging the constant development of skills and
professionalism and acknowledging the contribution of individuals to the success of the
organisation;
Sensitivity to the social context, participating in charitable, cultural and sports
initiatives;
Reduction of direct and indirect environmental impacts by taking measures to
minimise the consumption of energy, paper and water, and lower pollutant emissions.
14
BANCA GENERALI SUSTAINABILITY INDICATORSINTEGRATION OF SDG IN BG’S MATERIALITY ANALYSIS
FIVE areas of action points within our
Sustainability Programme with multiple
Key Performance Indicators (KPIs) to
support a long term monitoring.
These KPIs are monitored through a
dashboard alongside their reference
benchmarks, with the goal of tracking
our sustainability performance.
BUSINESS APPROACH
PRODUCTS & SERVICES
GOVERNANCE
ECONOMIC SUSTAINABILITY
PEOPLE
15
ESG RATING AND RELEVANT INITIATIVESSUSTAINABILITY CREDENTIALS
Solicited ratings
Focus of detecting areas for
improvement within ESG strategy
Sector benchmarking
Full Investment Grade
Sustainability Rating:
EE (strong)* (On a scale of EEE to F)
Membership1
Note: 1) Membership to UNGC and CDP as a result of the Generali Group adhesion
Rating agencies Corporate Governance: 1
Environment: 2
Social: 2 Pending rating disclosure
Industry Rating: BB* (On a Scale from CCC to AAA)
16
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
17
INNOVATION IN AM SOLUTIONSSUSTAINABILITY AS AN ALTERNATIVE APPROACH TO CLIENTS
ESG Reporting
Link and valuation of the contribution of each fund to the SDG target
Effective and clear reporting of ESG targets
ESG Fund Selection
Wide and growing offer: 161 ESG funds with 25 AMs
Wide range of investment strategies (Best in Class, Best effort, Engagement, thematic Investing)
ESG Portfolio Platform
Fund due-diligence and monitoring of SDGs goals with the support a specialist partner
Investment advisory dedicated to SRI/ESG portfolio lines
Proposition for Clients
UN Sustainable Development Goals (SDGs)
New commercial approach starting from Clients’ need
18
Engine Optimization
SUSTAINABLE
PORTFOLIO 100%BG Personal Portfolio
SOSTENIBILITÀ BANCA GENERALI IMPACT “SBGi”
In November 2019 Banca Generali filed an application to register the “SBGi” trademark in class 36 (banking and financial services) in Italy. It will enable Banca Generali to maintain a competitive
advantage by anticipating the possible consequences for the market of the draft regulation on disclosures relating to sustainable investments and sustainability risks. (the “Disclosure Regulation”).
SDGs
CHOSEN by the
CUSTOMER
CUSTOMER'S RISK
PROFILE
SUSTAINABLE
PRODUCTS
19
We report impact results of funds and model portfolios according to objective ESG metrics:
Emissions Reduction
10 tonnes of CO2 avoided
= 71 car trips from Milan to Rome
Water Saved
3,113,769 litres of water saved
= 44,482 showers
Waste Management
85% waste reduction plans
+ 43% vs benchmarkE
IMPACT METRICS
High Risk Patients
2 patients treated
Healthy Food
212 natural and/or organic meals
provided
Work Environment
88% decent work environment
+ 51% vs benchmark
S
Gender Equality
35% women on the board
+ 16% vs benchmark
Independent Board
75% independent directors
+ 5% vs benchmark
Anti-corruption
89% anti-bribery enforcement
+ 35% vs benchmarkG
20
9 29 5095
144205
307 335
539
667717
809
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Net inflows since inception of new ESG commercial approach €/m
0.8 0.9 0.9 1.0 1.0 1.1
1.4 1.4
2.0 2.12.3 2.4
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Target of ESG products on total
assets >10% within 2021
2.7%
7.2%
10.0%
2018 2019 E2021
>
SUSTAINABILITY FOR BANCA GENERALIRESULTS AHEAD OF EXPECTATIONS
0.8 2.4
AUM IN ESG PRODUCTS(€/bn):
Total assets in ESG products €/bn
21
RECENT ESG PRODUCT LAUNCHESPRODUCTS & SERVICES
22
Universe
Wide and growing offer: ~ 200 ESG funds with 35 AMs
Wide coverage of all UN SDGs
Portfolio management
Long/Short Sub-fund
UN SDGs
New LUX IM sub-fund that avails
itself of the investment advisory of
Ambienta SGR, a leading private
equity firm focussed on ESG themes.
First Insurance portfolio based on
SDGs alignment for Assicurazioni
Generali.
Four portfolio management lines within the discretionary portfolio
management service with a specific view to sustainability topics,
some of which supported by sustainability advisors.
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
23
KNOWING THE CLIENTEXCELLENT PROFILING PROCESS FIRST STEP TO COMMERCIAL SUCCESS
*The figures refer to persons who have been Banca Generali customers for at least one year.
Knowing the client and understanding proposals Number of customers and AuM
95%
Customer
retention
rate
Average duration of
the agreement*
~301k
Customers
11 years
& 1
month
24
WEALTH MANAGEMENT APPROACHHOLISTIC APPROACH IN THE NAME OF THE VISION AND MISSION OF THE BANK
Art
Financial
assets
CorporateFamily
protection
Real
estate
Corporate
Merger & Acquisitions
Dynamic hedging
Subsidized finance
Financial assets
Open architecture
In-house funds
Bespoke financial & insurance solutions
Banking platform
65
Banca Generali’s client assetsAs of 1Q 2020, bn/€
234
Financial
assetsFinancial + Non-
financial assets
Real estate
Advisory
Valuation
Agency
PARTNER
LAW FIRMS
Succession planning
Legal and fiscal support
Wealth protection
Trust services
Family protection, wealth planning
Art advisory
25
CUSTOMERS & INNOVATIONPRINCIPLES & DATA SECURITY
Professional ethics
Culture of sustainability
Data protection rights
Conflicts of interest Free competition
Financial disclosures & cost
transparency
Bribery and corruption
Money laundering &
Financing of terrorism
Customer satisfaction
The Principles
Guiding
Customer Relations
Policies on data protection, IT security and strategic
direction on the matter of information communication
technology (ICT)
Training courses for employees
GDPR – General Data Protection Regulation
(Regulation EU 2016/679)
Systems and tools to ensure data security (firewall, anti-
malware and antivirus software…)
Periodic revision of the safeguards adopted in accordance
with industry legislation (periodic updates to the record of
processing)
Constant assessment of the risks associated with the new
personal data processing methods introduced by the
Company
Cyber-security: development and adoption of an adequate
set of tools and technologies to protect IT systems to
ensure availability, confidentiality and integrity
26
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
27
OUR PEOPLE – THE FA NETWORK
Reference to YE2019
60h average training
hours by FAsMIFID 2, anti-money laundering &
IVASS
Male 82%
Female 18%2,040 financial advisors+2.8% since 2018
Offices 165
Branches 46
147 customers per FA
FINANCIAL ADVISORS
Private Bankers (PBs)/Financial Planners (FPs) and Wealth Advisors (WAs) collaborate with the Company
as freelance professionals
€32.8m AuM per FA
28
BANCA GENERALI DNA AND HIGH QUALITY OF FASTHREE KEY AREAS TO SHOW BG CULTURE
SOURCE: 1) CF Explorer 2018 – FINER; 2) CF Explorer 2018 – FINER; GFK Eurisko – PF Monitor 2014, 2015, 2016, 2017; 3) Istituto Tedesco Qualità e Finanza, 2015, 2016, 2017, 2018
"Best Financial Advisory
network in Italy five years
in a row"
"Best Financial Advisory
Network by Client Satisfaction" in 2015, 2016, 2017, 2018 and 2019
Istituto tedesco di Qualità e Finanza
Client Satisfaction2FAs’ Satisfaction1FA quality
1st
in the ranking for FAs’ sense
of belonging
with 3.71 (maximum 4.0)
29
21.5
27.8
32.8
2019
Average FA portfolio (Assets/FA)
Average FA sector
Best Player ex-BG
Banca Generali
FINANCIAL ADVISORS TEAMS
VERTICAL TEAMHORIZONTAL TEAM
• Sharing skills
• Team members focused on specific areas of expertise
• Tailor-made services
• Succession planning for FA Leader
• New generation of FAs
• Management and development of the entire Client
base
Already 64 teams up and running (138 FAs involved)
SUCCESSFUL ROLL-OUT OF THE TEAM MODEL
Data as of 31.12. 201930
TRAINING PLATFORMONGOING FOCUS ON TRAINING
Extended Class model
• Continuous training /
information approach,
• Integration of digital /
physical channels
• Inside and outside
traditional classes
• Levearging and
spreading of best
practices
The single channel dedicated to Financial
Advisors’ training
COURSE CREDITS
MULTIDEVICE
ALL TOPICS AND TRAINING
MATERIALS ONE CLICK
AWAY
BEST PRACTICES
FROM NETWORK
COLLEAGUES
MANAGERIALMONITORING
ADVANCED «SEARCH» FUNCTION
New training model
New training platform
31
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
Our People - Employees
32
Our People are one out of five pillars of the BG Sustainability Index
OUR PEOPLE - THE EMPLOYEES
Reference to YE2019
Over 48,000 training hoursSenior Manager 7%
Middle Manager 32%
Employee 61%
950 people
Average age 44
Male 51%
Female 49%
Italy 94%
Abroad 6%
33
SUSTAINABILITY
BG PEOPLE IN A NUTSHELL
34
• Interdepartmental Projects
• Agile Mindset: Organization & Process
• Smart Working
• Virtual Room Incubator
• Micro Stage
• Delegation of "Super Powers “
• Smart Meeting
• Turn the Table
ORGANIZATIONBecome a simple, agile and efficient
organization
• Technical Skills Mapping
• Digital Mindset & New Digital Skills
• Development linked to Performance
• Global Learning Management System –
WE Learn
• “A Look at the Outside” – Off Site
• BG On Air
KEY SKILLSBuild and evolve key skills for
the digital age
• New Group Performance Management
• Talent Garden
• Talents Project
• Mentoring
• People Manager Project
• New Global Job Posting
• Switch the Boss
LEADERSHIP & TALENTSGrow global and diverse leaders
& talents
• Life-time Partner Behaviours
• D&I Strategy
• Customer Attention
• Meetings with the Network & Top
Management
• New On Boarding Process
• The BG Brand Asset
• Off Limit Time Zones
• BG Energy
Foster a customer-centric, inclusive
and open culture
CULTURE
OUR PEOPLE - THE EMPLOYEESBG PEOPLE STRATEGY
34
• Lion’s Coins
• Group Employee Share Plan
• Generali Up
EXCELLENCEReward excellence and
sustainable value creation
New actions will be included following Global Engagement Survey taking place in June 2019
35
PEOPLE – GLOBAL ENGAGEMENT SURVEYGLOBAL ENGAGEMENT SURVEY 2019
Strengths
Priorities
Clarity on the strategy and vision
Strong personal commitment
Strong customer focus
Eliminate bureaucracy
855Of BG employees
took part
525Open comments
received
Response Rate 96%
+7 pps vs. Generali Group
-2 pps vs. 2017 Survey
+5 pps vs. GIA&WM1
Engagement Index 82%
Energize our people
Empowerment & delegation
Note 1: GIA&WM refers to Group Investments, Asset & Wealth Management
+3 pps vs. GIA&WM1
+1 pps vs. 2017 Survey
+3 pps vs. Italy Financial Services Norm
= vs. Generali Group
OUR PEOPLEGENDER EQUALITY & DIVERSITY: REMUNERATION & ROLE PARTICIPATION
Remuneration ratio: WOMEN vs. MEN1 Employees by Profession & Gender
36Note 1: Consolidated data for Italy + Lux as of 31 Dec 2019. Annual employees’ remuneration figures include the amount established by the national collective labour agreement
and supplementary agreement, in addition to any other types of additional remuneration, such as seniority of service, overtime, bonuses, allowances and benefits.
Women Average Percentage Pay vs. Men (=100%)
88%
90%
2018 2019
MANAGERS
75%
77%
2018 2019
EXECUTIVES
92%
94%
2018 2019
EMPLOYEES
27%
26%
73%
74%
2018 2019
MANAGERS
37%
36%
63%
64%
2018 2019
Women Men
EXECUTIVES
59%
59%
41%
41%
2018 2019
EMPLOYEES
Training
OUR PEOPLETRAINING ACTIVITY
37
Managers Executives Employees
48,021
training hours
in 2019(39,000+ h in 2018) TECHNICAL (BUSINESS AND
NON-BUSINESS) SKILLS
To continue to ensure a widespread technical
leadership within the Organisation and
competitive on the market
MANAGERIAL AND BEHAVIOURAL SKILLS
To support people in the major strategic changes
and build a unique managerial style/approach
REGULATORY/SAFETY
To make the Bank sustainable in the long-term
and protect its employees and the Organisation
Average training
hours by profession
• MAP - Managerial Acceleration
Program
• GATE – Generali Advanced Technical
Education
• TECHNICL SKILL MAPPING
• WE LEARN program
• D&I – Diversity & Inclusion
- Women’s Leadership Program
- Mentoring Program
- Unconscious Bias
Key training projectsKey training subjects
91
53 51
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
38
DIGITAL STRATEGYENHANCED DIGITAL TOOLS FOR CLIENTS
Dedicated Joint-Venture with a brokerage firm – 19.9% BG, 80.1% Saxo Bank
Exclusive partnership for the Italian market
Joint-Governance – with veto right for BG on selected subjects
Revenue sharing agreement based on source of clients
Full range of digital touchpoints
New Mobile Banking App (fingertips, face ID)
100% digital onboarding process – account opened in 20 minutes
Mobile payments – Apple pay Google Pay and Samsung pay integrated
39
DIGITAL STRATEGYENHANCED DIGITAL TOOLS FOR FAS
BG Store – digital desk for FAs with a multi-device approach
Launch of several digital tools to support FA’s activity (BG Editor, BG Products)
Digital collaboration boosted by the release of new functions
ESG Platform – analysis, optimization tool for ESG products and portfolio
E-learning platform for FAs
Digital onboarding platform for handling electronic credit line applications, managing succession
processes, smart mail functions
Proprietary IT platform providing a comprehensive overview of both financial and non-financial wealth
(real-estate, corporate, estate planning, family protection, art advisory)
Contract on a fee-on-top basis
Integrated reporting also available on assets deposited by third-party banks
Robo-4-Advisors solution to support FA’s productivity
MIFID-compliant tool allowing check of client portfolios’ suitability on an ongoing basis
Additional service provided within the advance advisory framework
40
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
Governance & Risk control
41
GOVERNANCE
Agile structure: 9 members (1 executive
(CEO), only)
Independent members: 56%
Share of Female members: 44%
Split roles for Chair and CEO
High attendance (91%)
International profiles and leading roles
Board of Directors
Board Committees
Composed entirely by independent, non-
executive members
Women leading Board Committees:
The Internal Audit and Risk Committee
is chaired by Anna Gervasoni
42
SUSTAINABILITY FOCUS FROM WITHIN THE BOARDPROVEN ESG SKILLS
Nomination, Governance & Sustainability Committee
Responsibility for sustainability falls to the Board of Directors,
which performs this task through its Nomination,
Governance and Sustainability Committee appointed in
March 2018.
This committee has 2 main goals:
1. Develop effective, accountable and inclusive business.
2. Engaging with stakeholders while it oversees all
governance and sustainability mNote: stats reflect the
Board of Directors composition at Banca Generali,
Generfid and BGFML.
Chairman
1. Massimo LapucciIndependent, non-executive board member (since April 2018)
• Vice president Agenda Social Impact for Italy
• Chairman of the European Foundation Centre, a platform that champions institutional
philanthropy.
• London School of Economics – Marshal Institute Member of the Board of Advisors, seeking to
improve the impact and effectiveness of philanthropic initiatives.
• Yale University World Fellow, Strategy, Finance & Sustainability.
Other committee members:
2. Annalisa PescatoriIndependent, non-executive board member (since: April 2018)
• Partner at law firm Grimaldi Studio Legale.
• Expertise in Corporate Governance and all aspects of Commercial Law.
3. Giovanni BrugnoliIndependent, non-executive board member (since: April 2018)
• Confindustria (main association representing manufacturing and service companies in
Italy), Vice President, responsible for Human Capital
• Entrepreneur with a vast experience in the field of Corporate Governance
43
79.2%72.2% 71.4%
59.7% 55.9% 53.6% 52.1% 49.7%44.9%
35.6%
BancaGenerali
Unipolsai Finecobank Unicredit Mediolanum Ubi Banca IntesaSanpaolo
AzimutHolding
BPER Banca Banco BPM
SHAREHOLDER PARTICIPATION & VOTING2020 ANNUAL GENERAL MEETING
68.3%78.4% 79.2%
2018 2019 2020
50Proactive outreach
25%O/S of Banca Generali
2020 AGM Shareholder Participation Rates
Banca Generali’s AGM Participation
2020 AGM Vote Results
44
2020 Minority Support
39.0%53.7%
33.0%
73.0%
94.9%83.2%
RemunerationPolicy
vs. 2016
Network LoyaltyPlan
vs. 2017
LT Incentives Planvs. 2018
1st Year Voted 2020
+34 pps +41.2 pps +50.2 pps
57.4% Average
99.9%
99.9%
94.9%
98.1%
93.8%
100.0%
90.1%
92.4%
99.8%
0.1%
0.1%
5.1%
1.9%
6.2%
0.0%
9.9%
7.6%
0.2%
Statutory auditing assignment
Buy-back Authorisation
2020 Commercial Network IncentivesPlan
2020 Network loyalty plan
2020 LT Incentive Plan
2:1 Increase Variable Remuneration
2020 Remuneration Policy
2019 Remuneration Report
2019 Financial Statements
For Against/Abstain
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
45
-20% total GHG emissions
ENVIRONMENTAL IMPACTFOCUS ON CLIMATE
2020 Target 2019 Environmental
Performance
276 tCO2eq
Direct (Scope 1)
1,127 tCO2eq
Indirect (Scope 2 & 3)
90%WHITE PAPER
green & certified
56%
27%
17%
Electrical Power (7,523 GJ)
Natural Gas (3,705 GJ)
Heat (district heating)(2,240 GJ)
54%
46%
Unsorted collection
Separate collection
-7.2%WATER
consumption vs. 2013
-25%NATURAL GAS AND
DIESEL OIL
consumption
-25%PER CAPITA
ELECTRICAL POWER
consumption
-15%WATER
consumption
-15%PAPER
consumption
+4%Unsorted waste
collected vs 2018
(in weight)
100%ELECTRICITY
from renewable sources*
Note: 100% renewable energy being used in Banca Generali’s main offices in Milan (Torre Generali Hadid) and Trieste (Via Corso Cavour 5/a), together hosting 675 employees, 71% of Banca Generali Group’s workforce.46
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
47
COMMUNITY PROJECTS (1/2)IMPROVING THE LIVES OF OTHERS
+10,000Children
10Cities
›› Fostering financial education in schools and among young people.
›› Meetings in classrooms together with Feduf (ABI Foundation) experts
to introduce children to the fundamentals of finance.
›› Promoting the educational values of sport and diversity as a
motivation to achieve special goals.
›› Protection of the historical and artistic heritage of Italy through the
‘Spring Days’ alongside the FAI.
›› Exhibition "Hidden Treasures" by photographer Stefano Guindani
in collaboration with the FAI to showcase the beauty of Italy.
2,000+visitors
(+20% since
2018)
›› Main partner of the ArtWeek organized by the City of Milan with
events and initiatives involving the whole city.
›› BG Art Talent: multi-year project to enhance the best emerging
artists on the national scene, under the supervision of Vincenzo de
Bellis, director of the Walker Art Center in Minneapolis.
Financial Education
Sensitivity to the Social Context Culture
48
COMMUNITY PROJECTS (2/2)IMPROVING THE LIVES OF OTHERS
›› €1m donation for the Covid-19 emergency: €500k to
purchase 4 ambulances for the Red Cross of Bergamo, Monza,
Pavia and Trieste and €500k on hospital equipment and medical
material.
›› University Project: collaboration with four leading Italian
universities to support research in the economic field with a focus on
Private Banking and Wealth Management.
Innovation & Training
›› “Recipes for Innovation”: online events focused on technology and innovation supporting Italy’s global
competitiveness.
›› ”Recipes for Recovery”: live talk show to discuss the recovery with the main interlocutors of the economy
and markets in the post-Covid-19 phase.
›› Training & Innovation Hub:
laboratory center dedicated to
innovation and trainingLaunched: February 2020
Community protection
›› The Human Safety Net: foundation set up in 2017 by Generali. Banca
Generali supports the foundation's social projects through fundraising for
the «for Families» project.Community protection
YouTube Channel
Banca Generali
49
AGENDA
Sustainability journey
Responsible Investments & SDGs
Clients service and client protection
Environmental commitment
Governance & Risk control
Digital strategy
Our People - Employees
Our People - Financial Advisors
Community projects
Business and Strategy at a glance
Preliminary remarks
Appendix
50
SUSTAINABILITY DRIVERS
1. Business
Approach
The UN Sustainable Development Goals* underpin the
company’s strategic priorities.
Long-term protection of customers’ wealth, financial
education and the highest standards on data security.
2. Governance
Nomination, Governance & Sustainability Board
Committee is responsible for the effective integration of
environmental & social aspects in the strategy.
Transparency, data security and prevention of corruption.
3. People
Human capital is the most valuable asset.
Focus on attracting and retaining best talent & enhance
their skills through training.
Committed to protecting human rights and diversity.
4. Products &
Services
Sustainability issues are carefully considered when
designing BG’s Products and Services.
Customer experience is the top priority. Digital
technologies and product innovation are key market
differentiators.
5. Economic
Sustainability
We seek to grow our business’ solidity & profitability.
Banca Generali brings ESG investing to our clients.
Drivers Materiality Focus
51Note: See Appendix for Banca Generali’s relevant Sustainability Development Goals relevant
LONG TERM INCENTIVE SYSTEM 2020TIMELINE AND KPIs
2020 2021 2022 2023 2024 2025 2026 2027
25%
Three-year performance
Subject to malus provisions
50% shares
granted
100% shares available
after 1 year
100% shares available
after 1 year
Clawback provisions
50% shares
granted
Net Holding
Cash flow
Relative
TSR
Adjusted
EVAt.ROE
Banking Group (80%) Generali Group (20%)
50% 50% 40% 60%
% of vesting and performance targets are detailed in the remuneration report
52
BOARD COMPOSITIONKEY COMPETENCIES
Board of Directors
Name Role Independent
Giancarlo Fancel Chairman
Gian Maria Mossa CEO
Giovanni Brugnoli Director
Azzurra Caltagirone Director
Anna Gervasoni Director
Massimo Lapucci Director
Annalisa Pescatori Director
Cristina Rustignoli Director
Vittorio Emanuele Terzi Director
Required* fields of expertise where directors
must have accumulated experience:
1. Business Administration in the banking,
financial or insurance sectors
2. Management of service-sector companies
3. Marketing
4. Finance
5. Corporate oversight or risk management
6. Law and compliance issues
7. Lecturer or professor of law, economics or
subjects related to financial markets
8. International matters
53Note: Regulation from the Bank of Italy in respect of the corporate governance of Banks and the Guidelines on Internal Governance issued by the European Banking Authority (EBA)
