Financial Solutions for International Clients 1
Foundations for growth 1 Financial Solutions for International - - PowerPoint PPT Presentation
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
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.
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Agenda
1 2 3 4 5
Introduction & Overview Our Business Strategy Progress on New Business Strategy Results - H1 2015 Summary & Outlook
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Graham Morrall
Global Sales & Marketing Director
Vince Watkins
Chief Financial Officer
Gordon Marr
Chief Executive Officer
Meet the team
Introduction and Overview
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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
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Our Business Strategy
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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
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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
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Progress on New Business Strategy
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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
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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
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Capturing strong market opportunities
Rebuilding distribution….continued
Europe Based
+ 12
Latin America
+ 4
ME & Africa
+ 15
S.E Asia
+ 10
North Asia
+ 12
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
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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
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- 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
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Foundations for growth
Rebuilt Sales Team Refreshed All Products Increased Market Awareness Rebuilding Distribution Enhanced OnLine systems
Progress since launch of strategy
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Results – H1 2015
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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
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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
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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
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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
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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
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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
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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
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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
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Summary and Outlook
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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
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Appendix
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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