Foundations for growth 1 Financial Solutions for International - - PowerPoint PPT Presentation

foundations for growth
SMART_READER_LITE
LIVE PREVIEW

Foundations for growth 1 Financial Solutions for International - - PowerPoint PPT Presentation

Foundations for growth 1 Financial Solutions for International Clients This presentation does not constitute an invitation to subscribe for or otherwise to acquire or dispose of shares in Hansard Global plc. This presentation may contain


slide-1
SLIDE 1

Financial Solutions for International Clients 1

Foundations for growth

slide-2
SLIDE 2

Financial Solutions for International Clients 2

This presentation does not constitute an invitation to subscribe for or otherwise to acquire or dispose of shares in Hansard Global plc. This presentation may contain forward-looking statements with respect to certain of the plans and current goals and expectations relating to the future financial conditions, business performance and results of Hansard Global plc. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of Hansard Global plc, including amongst other things, Hansard Global’s future profitability, competition with the markets in which the Company operates and its ability to retain existing intermediary clients and win new intermediary clients, changes in economic conditions generally or in the life assurance, savings and investment products sectors, terrorist and geopolitical events, changes in legal and regulatory regimes and practice, the ability of its owned and licensed technology to continue to service developing demands, changes in taxation regimes, exchange rate fluctuations, and volatility in the Company’s share price. As a result, Hansard Global’s actual future financial condition, business performance and results may differ materially from the plans, goals and expectations expressed or implied in these forward-looking statements. Hansard Global undertakes no obligation to publicly update or revise forward-looking statements, except as may be required by applicable law and regulation (including the Listing Rules). No statement in this presentation is intended to be a profit forecast

  • r be relied upon as a guide to future performance. In particular, past performance is no guide to future performance.
slide-3
SLIDE 3

Financial Solutions for International Clients 3

Agenda

1 2 3 4 5

Introduction & Overview Our Business Strategy Progress on New Business Strategy Results - H1 2015 Summary & Outlook

slide-4
SLIDE 4

Financial Solutions for International Clients 4

Graham Morrall

Global Sales & Marketing Director

Vince Watkins

Chief Financial Officer

Gordon Marr

Chief Executive Officer

Meet the team

Introduction and Overview

slide-5
SLIDE 5

Financial Solutions for International Clients 5

Overview H1 2015

Encouraging progress on strategy implementation Strategic focus

  • n strong market
  • pportunities

Control functions and governance structures enhanced No material movement in relation to Japan policy book Strong positive cash flows Hansard Europe well-capitalised and profitable

Highlights

Financial highlights:

  • EEV profit: £6.6m (H1 2014:

£2.2m loss)

  • New Business: £29.4m

(PVNBP) (H1 2014: £55.2m)

  • New business Q2 2015 + 13%
  • ver Q1 2015
  • CEC liability remains at £5.0m

– settlement discussions with HMRC

  • Increased interim dividend
  • IFRS profit £6.6m in line with

last year

slide-6
SLIDE 6

Financial Solutions for International Clients 6

Our Business Strategy

slide-7
SLIDE 7

Financial Solutions for International Clients 7

Our Business Strategy

To add significant scale to the business, on a more diversified basis, through

  • rganic growth at acceptable

levels of risk & profitability To be the preferred choice of distributors when recommending international savings and investment products to their clients

Strategic Objectives

slide-8
SLIDE 8

Financial Solutions for International Clients 8

Better value For clients More long-term relationships with distributors A more visible profile in the market Excellent client service Market leading online systems Motivated & engaged workforce

Our Business Strategy

Strategic Objectives

slide-9
SLIDE 9

Financial Solutions for International Clients 9

Progress on New Business Strategy

slide-10
SLIDE 10

Financial Solutions for International Clients 10

Rebuilt Sales Team Refreshed All Products Increased Market Awareness Rebuilding Distribution Enhanced OnLine systems

Activity since launch of strategy

More long-term relationships with distributors

slide-11
SLIDE 11

Financial Solutions for International Clients 11

We added 33 new Terms Of Business in 2014 with networks representing

  • ver 200 new individual

brokers to our available distribution. We have now added 53 new Terms Of Business with networks – representing over 400 new individual brokers to our available distribution.

Capturing strong market opportunities

Rebuilding distribution

slide-12
SLIDE 12

Financial Solutions for International Clients 12

Capturing strong market opportunities

Rebuilding distribution….continued

Europe Based

+ 12

Latin America

+ 4

ME & Africa

+ 15

S.E Asia

+ 10

North Asia

+ 12

slide-13
SLIDE 13

Financial Solutions for International Clients 13 Events

New Products

  • New Contractual and Non Contractual Savings Plans
  • New Portfolio Bond launched in February
  • Completes refresh of all products – more competitive
  • 90 new funds added to increase policyholder opportunities
  • New Shariah compliant funds
  • Q4 - will launch risk rated portfolios to support pensions business
  • Independent consultant to support QROPs / SIPPS business - to

be launched in Q3

  • Agreements with 12 Trust Companies for QROPs / SIPPS business

New Funds New Services

Better value for clients

Proposition improvements over the last 12 months

slide-14
SLIDE 14

Financial Solutions for International Clients 14 Events

Brand

  • Refreshed Brand
  • Refreshed Corporate website – More changes to come
  • Refreshed Literature
  • International Adviser – Advertisements and events
  • Local marketing – including IOM
  • New Corporate and Product presentations
  • New Corporate Presentations
  • New Product Presentations
  • New Hansard OnLine Presentation

Promotion

More Visible profile in the market

Marketing improvements over the last 12 months

slide-15
SLIDE 15

Financial Solutions for International Clients 15

  • New languages

Market leading OnLine systems

System improvements over the last 12 months

  • New Hansard OnLine Presentation
  • New languages
  • Refreshing Client and Broker Sites
  • Hansard OnLine “Lite” in development to better

showcase HOL to potential brokers

  • Payment card processing
  • Broker hierarchy
slide-16
SLIDE 16

Financial Solutions for International Clients 16

Foundations for growth

Rebuilt Sales Team Refreshed All Products Increased Market Awareness Rebuilding Distribution Enhanced OnLine systems

Progress since launch of strategy

slide-17
SLIDE 17

Financial Solutions for International Clients 17

Results – H1 2015

slide-18
SLIDE 18

Financial Solutions for International Clients 18

H1 2015 H1 2014 New business sales – Regular premiums £17.6m £44.4m New business sales – Single premiums £11.8m £10.8m New business margin (-3.9)% 7.5% IFRS profit after tax £6.6m £6.6m EEV profit / (loss) after tax £6.6m (£2.2m) Interim dividend per share – payable 2-Apr-15 3.5p 3.4p H1 2015 FY 2014 European Embedded Value £204m £204m Assets Under Administration £924m £943m

Summary Results – H1 2015

Results – H1 2015

slide-19
SLIDE 19

Financial Solutions for International Clients 19

H1 2015 H1 2014 £m £m Latin America 11.1 16.6 Far East 7.1 26.4* Middle East and Africa 4.0 0.9 Rest of World 7.2 11.3 PVNBP 29.4 55.2 New business flows in H1 2015 reflect regional market development activities * H1 2014 includes £10.9m from a Japanese distributor that suspended operations in that period

Present Value of New Business Premiums (PVNBP)

Diversified New Business Flows

Results – H1 2015

slide-20
SLIDE 20

Financial Solutions for International Clients 20

H1 2015 H1 2014 Present Value of New Business Premiums £m £m Regular premiums 17.6 44.4* Single premium 11.8 10.8 PVNBP 29.4 55.2 New Business Margin (PVNBP basis, after tax) (3.9%) 7.5% Reductions in new business margin reflects impact of reduced sales volumes * H1 2014 includes £10.9m from a Japanese distributor that suspended operations in that period

Results – H1 2015

New Business Flows

slide-21
SLIDE 21

Financial Solutions for International Clients 21

H1 2015 H1 2014 £m £m Operating cash surplus 13.8 19.0 Interest and other income 0.4 0.5 Cash inflow 14.2 19.5 Investment in new business (3.8) (9.0) Corporation tax paid (0.0) (0.2) Capital expenditure (0.1) (0.7) Net Cash inflow before dividends 10.3 9.6 Dividends paid (6.9) (6.5) Net Cash flow for the period 3.4 3.1

Cash flows support investment in long-term contracts and dividends

81.1

  • 10

20 30 40 50 60 70 80 90 2010 2011 2012 2013 2014 £m

Shareholder cash at 31 December

Results – H1 2015

Positive Operating Cash Flows

slide-22
SLIDE 22

Financial Solutions for International Clients 22

H1 2015 H1 2014 £m £m Fees and commissions 26.7 27.9 Investment and other income 1.0 0.1 27.7 28.0 Origination costs (10.5) (10.6) Administrative expenses before settlements and discontinued activities (10.6) (9.6) 6.6 7.8 Settlements and discontinued activities (0.0) (1.1) Profit for the period before taxation 6.6 6.7 Tax 0.0 (0.1) Profit for the period 6.6 6.6 Strategic and

  • ther

expenditure is an investment in future growth. Profit supports increased interim dividend.

Results – H1 2015

Abridged Income Statement - IFRS

slide-23
SLIDE 23

Financial Solutions for International Clients 23

H1 2015 FY 2014 £m £m Deferred origination costs 118.3 123.9 Other assets 7.1 7.3 Shareholder cash and bank deposits 81.1 78.5 Total assets 206.5 209.7 Deferred income 140.4 141.2 Other payables 29.5 31.6 169.9 172.8 Net assets 36.6 36.9 Shareholders’ Equity 36.6 36.9 Continued positive cash flows to fund growth

Results – H1 2015

Strong IFRS Balance Sheet

slide-24
SLIDE 24

Financial Solutions for International Clients 24

H1 2015 FY 2014 £m £m Free surplus 31.8 28.3 Required Capital 26.1 25.1 Net Worth 57.9 53.4 Value of Future Profits 145.6 150.4 European Embedded Value 203.5 203.8

Fast conversion

  • f VIF to cash –

50% will convert within 5 years. Deferral of dividends from Hansard Europe for estimated 3 years - Required Capital. Results – H1 2015

Resilient EEV Balance Sheet

slide-25
SLIDE 25

Financial Solutions for International Clients 25

H1 2015 H1 2014 £m £m New business contribution (1.1) 4.1 Expected return 0.9 0.6 Experience variances (0.2) (0.0) Assumption and other changes (0.0) (0.8) EEV Operating loss after tax (0.4) 5.5 Investment return variances 4.6 (8.1) Economic assumption changes 2.4 0.4 EEV profit after tax 6.6 (2.2)

EEV return driven by new business levels and asset values Results – H1 2015

EEV return impacted by new business shortfall

slide-26
SLIDE 26

Financial Solutions for International Clients 26

Summary and Outlook

slide-27
SLIDE 27

Financial Solutions for International Clients 27

Summary and Outlook

  • Encouraging progress on strategy implementation
  • Strategic focus on strong market opportunities
  • 53 new Terms of Business
  • Over 400 brokers on the ground
  • Strongly positive cash flows
  • IFRS profit of £6.6m (H1 2014: £6.6m)
  • Increased interim dividend of 3.5p per share (2014: 3.4p)
  • Long-term outlook for the group is strong
slide-28
SLIDE 28

Financial Solutions for International Clients 28

Appendix

slide-29
SLIDE 29

Financial Solutions for International Clients 29

UNDERLYING INVESTMENTS INTERNATIONAL NETWORK OF INTERMEDIARIES Investment within a Hansard wrapper Hansard reinsures the life insurance risk

Hansard OnLine Hansard OnLine

INTERNATIONAL POLICYHOLDERS

Client Funds Client Funds

Policy retention drives fees and commissions receivable £0.92bn AuA at H1 2015

IFAs / Private Banks / Other Financial Institutions High net worth, mass affluent and expatriate segments Hansard OnLine supports IFA / policyholder needs

Business Model