Hansard Global Plc · LSE:HSD
Hansard Global — FY2015 Earnings Presentation
43 slides from Hansard Global's earnings presentation, September 2015
Slide 1: Building relationships
Building relationships Title??? September 2015
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Introduction & Overview
Introduction & Overview Our Business Strategy Results – FY 2015 New Business Plans Summary Questions
Slide 4: Meet the team
Meet the team Introduction & Overview Gordon Marr Tim Davies Graham Morrall Chief Executive Officer Chief Financial Officer Global Sales & Marketing Director
Slide 5: Overview – FY 2015
Overview – FY 2015 Introduction & Overview HIL New Business of £60.6m (PVNBP) for the year (2014: £83.0m) Underlying IFRS profit of £12.0m (2014: £14.7m) i.e. Refresh of senior Highlights excluding effects of management team and chargeable event structures certificates (“CEC”) issue Product and pric
Slide 6: Overview – FY 2015 - continued
Overview – FY 2015 - continued Introduction & Overview Strongly positive cash flows maintained by existing RP portfolio Provision for CEC settled in full with Increased final dividend of Highlights HMRC (£3m write back 5.25p per share in line with for FY 2015 vs £5m guidance provision) Assets under
Slide 7: Our Business Strategy
Introduction & Overview Our Business Strategy Results – FY 2015 New Business Plans Summary Questions
Slide 8: Our Business Strategy
Our Business Strategy
Slide 9: Strategic objective
Strategic objective Our Business Strategy To add significant scale to the business, on a more diversified basis, through organic growth at acceptable levels of risk & profitability To be the preferred choice of distributors when recommending international savings and investment products to their cli
Slide 10: Strategic objectives
Strategic objectives Our Business Strategy Better value More long-term For Customers relationships with distributors A more visible Excellent profile in the market customer service Motivated & engaged Market leading online workforce systems
Slide 11: Hansard Europe
Hansard Europe Update Operating Model • Dublin based subsidiary which wrote European business. In run-off since 30 June 2013 • Outsourcing of administration and finance activities to head office in Isle of Man operating successfully and efficiently • Further cost savings achievable in future over ti
Slide 12: Results – FY 2015
Introduction & Overview Our Business Strategy Results – FY 2015 New Business Plans Summary Questions
Slide 13: Results – Full Year 2015
Results – Full Year 2015
Slide 14: Summary Results – FY 2015
Summary Results – FY 2015 Results – FY2015 FY 2015 FY 2014 New business sales – PVNBP £60.6m £83.0m New business margin (6.2)% 4.0 % Operating cash surplus £24.3m £37.8m Underlying IFRS profit after tax £12.0m £14.7m IFRS profit after tax £14.9m £8.3m EEV Operating loss after tax (£6.3m) (£6.6m) Fin
Slide 15: Profitable New Business
Profitable New Business Results – FY 2015 FY 2015 FY 2014 RP comparisons continue to be Present Value of New Business Premiums £m £m impacted by loss of Japanese Regular premiums 36.8 63.7 distribution. Single premium 23.8 19.3 SP’s increasing PVNBP 60.6 83.0 through more competitive pricing. Annual
Slide 16: Positive Operating Cash Flows
Positive Operating Cash Flows Results – FY 2015 Operating cash surplus in year ended 30 June 50 FY 2015 FY 2014 40 £m £m £M 30 24.3 Operating cash surplus 24.3 37.8 20 Interest and other income 1.0 1.0 10 Cash inflow 25.3 38.8 0 Investment in new business (8.6) (15.4) 2011 2012 2013 2014 2015 Corpor
Slide 17: Free Cash
Free Cash Results – FY 2015 FY 2015 FY 2014 £m £m Total Group cash + deposit balances 80.9 78.5 Net shareholder payables (2.1) (7.8) Headline cash balance is Policyholder claims payable (17.3) (19.7) allocated to a Regulatory reserves (9.0) (9.0) number of Minimum regulatory capital * (10.8) (11.5)
Slide 18: HIL & HEL AuA Development
HIL & HEL AuA Development Results – FY 2015 HIL and HEL AuA 5 year trend 800 700 742 700 705 719 HIL: Steady AuA 600 after effects of global financial AuA £M 500 crisis worked through. 400 300 HEL: Expected 314 286 decline after being 200 239 placed in run-off in 207 2013. 100 0 2015 2014 2013 2012
Slide 19: Abridged Income Statement - IFRS
Abridged Income Statement - IFRS Results – FY 2015 FY 2015 FY 2014 £m £m Fees and commissions 52.6 55.2 Fee income declining as HEL book reduces and Investment and other income 1.4 0.2 lower initial fees in HIL. 54.0 55.4 Administrative expenses Origination costs (20.1) (21.2) include strategic deve
Slide 20: IFRS Balance Sheet
IFRS Balance Sheet Results – FY 2015 FY 2015 FY 2014 Deferred Origination Costs at 30 June £m £m 135 130 Deferred origination costs 113.5 123.9 125 £M Other assets 6.9 7.3 120 113.5 115 Shareholder cash and bank deposits 80.9 78.5 110 105 Total assets 201.3 209.7 100 2011 2012 2013 2014 2015 Deferre
Slide 21: EEV Balance Sheet
EEV Balance Sheet Results – FY 2015 FY FY EEV balance sheet as at 30 June 2015 2014 £m £m 300 VIF Net Worth £m Free surplus 36.5 28.3 200 Required Capital 27.0 25.1 63.5 Net Worth 63.5 53.4 100 131.5 Value of Future Profits 131.5 150.4 0 2011 2012 2013 2014 2015 European Embedded Value 195.0 203.8 F
Slide 22: EEV return impacted by new business shortfall
EEV return impacted by new business shortfall Results – FY 2015 FY 2015 FY 2014 £m £m New business contribution (3.7) 3.3 Negative new business contribution is due to low Expected return 1.8 1.5 volumes of new business. Experience variances 2.6 (6.7) Assumption changes reflect reduced numbers of Ass
Slide 23: Progress in New Business Strategy
Introduction & Overview Our Business Strategy Results – FY 2015 Progress in New Business Strategy Summary Questions
Slide 24: Progress on New Business Strategy
Progress on New Business Strategy
Slide 25: More long-term relationships with distributors
More long-term relationships with distributors Rebuilt Sales Rebuilding Team Distribution Increased Market Activity since Awareness launch of Enhanced strategy Refreshed All OnLine Products systems
Slide 26: Rebuilt sales team – key execution levers
Rebuilt sales team – key execution levers Sizing of target sales 11 structure & capacities The Strategy requires a more organised, more closely managed & monitored sales team to ensure the entire business can anticipate where 22 Recruitment & when resources are required to support our growth Tra
Slide 27: Rebuilt sales team – Current structure
Rebuilt sales team – Current structure Global Sales Les Wong Latin America Middle East & Far East Rest of the Africa World Rest of the World Account Account Account Account Executives Executives Executives Executives 1 Account 3 Account 6 Account 2 Account Executive Executives Executives Executives
Slide 28: Capturing strong market opportunities
Capturing strong market opportunities Rebuilding distribution New business in 2013 (excluding Japan) was introduced by 71 active* brokers. New business in 2015 (excluding Japan) was introduced by 118 active* brokers. *Active brokers means all brokers that produced more than £10k NICC
Slide 29: Rebuilding Distribution (since July 1st 2013)
Rebuilding Distribution (since July 1st 2013) North Asia Rest of the World + 12 + 19 TOB TOB S.E Asia Latin America +5 + 10 TOB TOB M.E & Africa + 32 TOB
Slide 30: New Products
Better value for clients Proposition improvements over the last 12 months • New Contractual and Non Contractual Savings Plans New • New Portfolio Bond launched in February 2015 • Average number of applications per month up 92% Products • Average new premiums per month up 115% • Completes initial ref
Slide 31: Brand Promotion
More Visible profile in the market Marketing improvements over the last 12 months • Refreshed Brand Brand • Refreshed Corporate website – More changes to come • Refreshed Literature • New Hansard OnLine Presentation • International Adviser – Advertisements and events Promotion • Local marketing – in
Slide 32: More Visible profile in the market
More Visible profile in the market New corporate web site
Slide 33: QROPS launch/on-going promotion
QROPS launch/on-going promotion Dedicated QROPS Microsite Targeted email campaigns Trade publications, advertorials Industry conference, launch presentation (Dubai & KL)
Slide 34: Advertising to an international audience
Advertising to an international audience
Slide 35: Raising local profile
Raising local profile HANSARD GLOBAL PLC Hansard Global plc: ® proud sponsors of Zurich Corporate Touch HANSARD HANSARD. INTERNATIONAL. Hansard wish you the best for the holy month of Ramadan Contact details: : ¥ rs Operating from our 1 Follow Us In HANSARD ae of vee base for over 25 years
Slide 36: On-going PR activity
On-going PR activity Promotional Microsites Digital trade advertising Corporate LinkedIn page
Slide 37: Market leading OnLine systems
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” • Payment card processing • Unit Fund Centre on client sites • Fund switching for client sites • Broker hierarchy •
Slide 38: Activity since launch of strategy
Activity since launch of strategy Rebuilt Sales Rebuilding Team Distribution Increased Market Activity since Awareness launch of Enhanced strategy Refreshed All OnLine Products systems
Slide 39: Summary
© HANSARD
Slide 40: Summary
Summary Indications from the Continued strong past and current cash generation from quarter that new generally a stable, business levels have regular premium turned a corner Several large closed- portfolio book litigation cases Increased final Product refresh and will be tied up for dividend of 5.25
Slide 41: Hansard Global plc
© HANSARD GLOBAL PLC
Slide 42: Business Model
appends HANSARD GLOBAL PLC BUSINESS MODEL
Slide 43: Business Model
Business Model High net worth, mass affluent and expatriate INTERNATIONAL POLICYHOLDERS segments Client Hansard Hansard OnLine supports IFA / policyholder needs Funds OnLine INTERNATIONAL NETWORK OF INTERMEDIARIES IFAs / Private Banks / Other Financial Institutions Policy retention drives fees Inves