Challenger Limited · ASX:CGF
Challenger — Challenger Financial Services Group — UBS Financial Services Conference 2005
15 slides from Challenger's conference presentation, Jun 23, 2005
Slide 1: Add image for first slide
Add image for first slide 1
Slide 2: Presentation to UBS Financial Services Conference
Challenger Financial Services Group Limited Presentation to UBS Financial Services Conference Michael Tilley, CEO 23 June 2005
Slide 3: Agenda
Agenda Overview 4 Summary financials 7 Meeting objectives 8 Drivers of value 13 Summary 14 3
Slide 4: Overview
Overview Challenger manages quality assets, offers competitive financial products and services to clients via intermediaries, and provides reliable wealth advice to individuals 4
Slide 5: Our model
Our model Servicing the needs of intermediaries & their clients Challenger Life Challenger Challenger Wealth Management Wholesale Finance Structures & manages Provides quality Provides competitive global assets to generate investment products lending products to long term predictable for institution
Slide 6: Our market position
Our market position Challenger Life Challenger Challenger Wealth Wholesale Finance Management Market leader in long term Non-bank market leader in Funds under management annuities white-label prime & non- increase 25% to $7.0bn in 12 conforming residential months to 31 March 2005 lending before HSBC
Slide 7: Summary financials
Summary financials 6 months to 12 months to 31 Dec 2004 30 June 2004 $m $m Profit before interest, tax and goodwill amortisation: • Historic cost basis 81 91 Profit after tax before goodwill: • Historic cost basis 50 47 EPS (post share consolidation): • Historic cost before goodwill 8.87 cents 1.83
Slide 8: What's been said
What’s been said • Building an integrated financial services company • Cleaning up the past • Focused on costs to reduce cost to income ratio • Creating synergies between our businesses • Leveraging our strengths • Guidance - RONA 18% target (June 04 net assets) • Challenger Life – net assets $483m
Slide 9: What's changed
What’s changed • Steps taken to re-enforce focus on 3 core businesses • Life – diversified portfolio of assets, improved capital position – growing net margins • Wholesale Finance – expanded product set – better than systems growth in 2005 while improving margin • Wealth Management – diverse product
Slide 10: Business line growth
Business line growth Gross assets less senior debt 4000 Challenger Life Asset growth increasing steadily 3000 3058 $m 2676 2384 2243 2000 Jun-03 Dec-03 Jun-04 Dec-04 N e w S e ttle m e n ts ( $ m ) 2000 20000 Challenger Wholesale Finance M o rtg a g e P o rtfo lio 1800 19000 1600 18000 Portfolio sho
Slide 11: What's been achieved
What’s been achieved Challenger Life Challenger Challenger Wealth Wholesale Finance Management Diversification of assets - Growing margins in HSBC acquisition and $430m committed to global competitive operating integration on schedule for infrastructure in 10 months environment July 2005 Annuity sal
Slide 12: Where the gaps are
Where the gaps are • Challenger Life • Continuing portfolio diversification - $1bn infrastructure by 12/06 • Building on origination capabilities & expanding asset management • Challenger Wholesale Finance • Continuing market share growth & maintaining margin growth achieved in 2005 • Challenger Wea
Slide 13: Drivers of value & priorities
Drivers of value & priorities Challenger Group Strict cost control & increasing revenue = Scale dividend Leveraging synergies across the business = Experience dividend Increasing capital management efficiency = Shareholder dividend Challenger Life Challenger Challenger Wealth Wholesale Finance Manag
Slide 14: Summary
Summary Î Strategy is to build 3 core business lines via organic & bolt-ons at a reasonable price Î Focus on improving margins ahead of growth Î Shared, scalable, quality services provide our comparative advantage Î Clear, simple, strategic plan on track CGF results to 30 June 2005 announced 29 Augu
Slide 15: Questions
Financial Services Group Questions
Challenger Financial Services Group — UBS Financial Services Conference 2005 on 6ix