Unipol Grupo Spa

Really would like to thank you for connecting with us today. I'm sure you stay safe and healthy, and I hope that you are being connected from home or from your safe office. Okay, before moving to the ordinary, let's say, financial session and the Q&A session, I'd like to draw your attention on the fact that we are now going through an extraordinary moment in our lives. So this is absolutely unprecedented. It just never happened before. So in the recent months, the entire business community, including our company, strove to find new ways of working, giving support to the network, including giving support to to local communities, which is what you can briefly see in the very short press release. Now, as for the figures that I'm going to walk you through, because of the lockdown concerning the entire business and because of the extraordinary consequences that this has generated of course, you know, that when we do assessments or when we close some business lines or numbers, well, of course, there are always some adjustments or let's say, you know, we suppose that many things may happen. Now, this is even more true today. So, even the underwriting time windows are different. In some cases, yes, we do have some, let's say, indirect lockdown measures that So once again, it is really, really very hard and difficult to say, to do some estimates and assessments. So it's quite difficult and uncertain, I mean, to make calculations. It's really, really difficult to know what will happen. We know that, of course, the bans will be lifted step by step, gradually. And, of course, it's difficult to imagine, I mean, the behavioral patterns for consumers. users and customers, because this high-risk situation may continue. This, of course, depends on the coronavirus, and the risk may be totally canceled only thanks to the discovery of a vaccine. Now, the scientific community is telling us that this is going to happen, but we are a long way away from the vaccine. So there's a long way to go. I also would like to highlight that the quarterly closures are a little bit less analytical or specific. I mean, what is much more, let's say, reliable is what happens after six months and then at the closing of the year. So, once again, please pay attention and be cautious when you read and interpret data and figures and numbers. Of course, we are supplying and providing information. the financial community with, you know, these figures and numbers. But, of course, all of this is now a little bit less specific and accurate. So please interpret, you know, figures in an aggregate manner. I'm here with the General Director, Dr. La Terza. So I'm available for questions. If you want to ask a question, please dial star followed by one on your telephone. If you want to get out of the booking list, please dial star followed by two. please use the receiver of your telephone. So, once again, if you want to ask a question, please dial star followed by one now. Question number one from the original conference from Elena Perini representing Banca IMI. Good afternoon, everyone. Basically, I have three questions. The first question has to do with what you have written on the press releases this morning, I mean, based on the information that is available today and also based on the trends going on as far as your company is concerned, you say that you know how to continue pursuing the objectives included in your plan. So you have all the ingredients required. Can you give me some color about this? So what about your targets? I mean, Can you reconfirm your targets, I mean the ones that you set some time ago, and where do you think risks may come from? Question number two concerns the Uniball dividend. So are you sure, are you confident that in the final part of the year, you may want to convene a general meeting in order to get to an agreement on the possible dividend distribution. And then the third question, last but not least, I'd like to have some color on the cash position of the holding company, maybe some fresh data versus what I can see on the general price.

Thank you.

Good afternoon, and thank you for the questions now. Let me go back to what I said at the very beginning of my presentation. I mean, you know, this very moment in time is very complex, so it is not difficult, I mean, to make reports or to draft, you know, reports, including, you know, what you talked about. I mean, the final result at the end of the first three months of the year. you know, it's very difficult now to anticipate, I mean, to forecast, I mean, to see what may happen to the economy of our country because of the coronavirus. Once again, as I said before, this is going to be quite difficult for the entire planet, I mean, for the entire world, not just the financial business. And so this is the reason why we have decided, I mean, to implement a specific It's a way of behaving. So we want to be very, very cautious in terms of reporting, drafting reporters, but also making forecasts. So once again, in other words, and in simple words, because there are so many uncertainties around us, I think that an extra caution is absolutely necessary. Well, this is the best answer because we are just sitting and waiting. So we are right in the middle of thick fog today. in terms of the Italian and the global economy. So we are waiting for the fog to disappear. Now, this being said, I think that everyone here, so the operators, I mean, in this business, know very well that if you consider the, well, industrial, let's say, management of our business, well, this year, so 2020, and, well, maybe not today, but I'm just thinking of the possible results at the end of the year. So once again, 2020 will give us, well, let's say consistent margins, I mean, versus the objectives and the targets that you can see in our business plan, because you can see that the, I mean, the lockdown here, the business lockdown has generated a contraction and it will also you know, trigger a reduction of the inflows, okay? So it depends, I mean, on the different sectors. So we have the, you know, life and long life. So the two main, if you will, deficits will deliver different results. But, you know, in general, you know, this has generated a contraction of claims. And so I'm trying to project, I mean, our current assessments, you know, to the end of the year. So I'm trying to do this kind of forecast effort to So from the industrial point of view, I mean, in terms of business plan, well, yes, I do confirm that we will, you know, well, once again, get the results that we had set some time ago. Now, what is absolutely different is the other sector. I'm talking about the financial business, because in this case, it is much more difficult to forecast, for example, the volatility, which is now very high. So right now we are going through the post-shock phase. I mean, the shock was the, well, the, you know, the blasting, if you will, of the epidemic. And then it turned into a pandemic. So everything, I mean, has been impacted, you know, negatively. So everything went down. I mean, the rates, credit loans, I mean, shares, stocks, bonds, I mean, everything went down. the same time so now markets are you know sort of rebounding and of course they do what we are doing here once again the fog is being uh you know lifted as i said before so this means that we will have you know a clear overview or clearer forecasts on what will happen to the italian and global economy so in terms of the financial business i'm pretty sure there will be an increase of volatility Now, this being said, in terms of the income or income level generated by our portfolio, which is what you must have seen in our presentation, that's unchanged. In terms of pricing, pricing may change, and this is one of the consequences of the portfolio assessments and evaluations. We will have a positive global reaction. Now, this means that we will be able to remove at least one part of of the financial shock, which is what happened between February and March. Once again, it is difficult today to measure, to do a proper assessment. Once again, we are very cautious. Anyway, if you combine both businesses, the so-called industrial management on one side and the financial business on the other, and if you consider the current situation, and again, if you also consider the answers and the reactions, which are many different types of reactions. I'm thinking of the monetary policy and then the fact of keeping the Italian spread down, and then the stimulus, the encouragement and the bonuses and the incentives to the global economy. So if you consider all of these factors, I don't think we will have any special criticality or difficulty also in terms of financial management. If you combine both business lines, I am confident that we will reach the targets that we have set some time ago.