Nn Group N.v. · EURONEXT:NN
Nn — Investor Day (November 2015)
23 slides from Nn's investor day presentation, Nov 19, 2015
Slide 1: NN Group: Driving performance forward
NN Group Driving performance forward Lard Friese, Chief Executive Officer Capital Markets Day 19 November 2015
Slide 2: Announced today
Announced today Administrative expenses Solvency II • Further expense reduction in the • Solvency II ratio of 214% Netherlands of approx. 15% at 30 September 2015 based on the Standard Formula and our • Administrative expense base in current interpretation of Solvency II the Netherlands of EUR 700 m
Slide 3: Our management team has executed the strategy and delivered on the targets since the IPO
1 2 Our management team has executed We will continue to drive customer the strategy and delivered on the satisfaction and shareholder value targets since the IPO
Slide 4: Our achievements since the IPO
Our achievements since the IPO Expense reduction target achieved ahead of schedule Significant cash generated with continued strong solvency ratios Externalisation of debt and credit rating upgrade Businesses rebranded to NN, Nationale-Nederlanden, and NN Investment Partners Head office relocation C
Slide 5: We are continually enhancing customer experience supported by an increased focus on innovation
We are continually enhancing customer experience supported by an increased focus on innovation Netherlands Japan Insurance Europe Colours Title Calibri - 30 bold Growing through innovation in our markets 238 - 127 - 000 • NN has history of product innovation: right propositions tailored for local ma
Slide 6: Supported by our brand promise 'You matter'
Supported by our brand promise ‘You matter’ Care - Clear - Commit 6
Slide 7: Delivering on the financial targets set at the IPO
Delivering on the financial targets set at the IPO Annual earnings1 growth of EUR 200 mln reduction Increase in ROE3 in Generate free cash 5-7% on average of administrative medium term available to shareholders in the medium term expenses2 compared with 2013 in a range around the net (EUR mln) (EUR
Slide 8: Generating total shareholder return of 54%
Generating total shareholder return1 of 54% Total capital returned to shareholders EUR 849 mln Share price performance (EUR mln) 150 849 140 156 2015 interim dividend Sept 2015 130 193 2014 final dividend June 2015 120 110 150 Share buyback Sept 2015 100 150 Share buyback May 2015 90 Aug-14 Dec-14 J
Slide 9: We will continue to drive customer satisfaction and shareholder value
1 2 Our management team has executed We will continue to drive customer the strategy and delivered on the satisfaction and shareholder value targets since the IPO
Slide 10: Our investment proposition is unchanged
Our investment proposition is unchanged Strong business Transformation in the Profitable growth and Focus on generating capital positions and balance Netherlands operating leverage in and improving earnings sheet other segments • Committed • Large closed book of • Primarily fee and • Significant cum
Slide 11: Robust balance sheet
Robust balance sheet IGD ratio Cash capital at holding Fixed-cost coverage ratio1 Financial leverage ratio (end of period) (EUR mln, end of period) (end of period) (end of period) 322% 1,619 13.2x 23.2% 22.4% 300% 1,413 9.9x 2014 9M15 2014 9M15 2014 9M15 2014 9M15 Solvency II ratio of 214% at 30 Sep
Slide 12: Recognising our strengths and weaknesses
Recognising our strengths and weaknesses STRENGTHS WEAKNESSES • Trusted brand • Legacy IT systems • Well-diversified sources of cash generation • Relatively expensive distribution • Large in-force customer base • Pace of change • Strong risk and customer culture • Large and high quality distribution
Slide 13: Continuing focus on efficiency
Continuing focus on efficiency New target administrative expense base in the Netherlands1 of EUR 700 mln by 2018 (EUR mln) 1,019 ~15% 214 201 818 84 700 ~30% 332 Holding 297 8-12% NL Non-life 472 NL Life 436 10-15% 2013 Savings Current Target 2018 target achieved expense base2 savings 2014-2015 2016
Slide 14: Netherlands Life is generating cash
Netherlands Life is generating cash Further reduce administrative Manage our investment margin Generate and upstream capital expenses by 10-15% (EUR mln) • Prudent investment mix • NN Life has paid dividends of • Ongoing opportunities to EUR 600 mln since the IPO raise mortgage allocation • NN Life
Slide 15: Netherlands Non-life to make improvements
Netherlands Non-life to make improvements More needed to reach COR target Further reduce administrative Growth ambitions secondary to <97% by 2018 expenses by 8-12% profitability (EUR mln) • Priority is to drive combined 9M15 2014 2013 ratio to target level: • Premium rate increases D&A1 97% 97% 102
Slide 16: Insurance Europe focusing on profitable growth
Insurance Europe focusing on profitable growth Product mix focused on life and Leveraging distribution platform Operational improvement voluntary pensions (by APE 9M15) • Distribution further • Customer satisfaction better 4% diversified, mainly through than main competitors in bancassurance channel
Slide 17: Japan Life is performing well
Japan Life is performing well COLI segment is 21%1 of Japanese Product development Operational improvement Life market by APE Total market EUR 21 bln • Broad range of products with • Operating result for 9M15 track record of innovation stable3 vs 9M14 • Leading player in the COLI • Operating leverag
Slide 18: Asset Management continues to invest in its strategy
Asset Management continues to invest in its strategy Assets under Management Operating leverage Third-party strategy (EUR bln) 186 • Cost-income ratio higher Focus 174 180 reflecting investments made • Pure play asset management in people, processes and • Effective distribution products, e.g.: Simpl
Slide 19: Generating value through deployment of capital
Generating value through deployment of capital Options Considerations Return to shareholders • Priority is to deliver on our equity story: • improve the businesses • improve RoE • generate cash and return it to shareholders Organic business growth • All business segments self-funded • Opportunities
Slide 20: We continue to assess our portfolio
We continue to assess our portfolio Japan Leading player in • Netherlands: market leader with capacity to play a The Netherlands Leading positions in COLI2 role in potential industry consolidation Life and Non-life1 • Europe: strongly positioned in most markets Top 3 positions in CEE3 life • Japan:
Slide 21: Key takeaways
Key takeaways 1 We have made good progress since the IPO 2 We will further improve performance across all businesses 3 Our capital position is strong and we aim to maintain a strong balance sheet and solvency position 4 We will return excess capital to shareholders unless it can be used for other va
Slide 22: Important legal information
Important legal information NN Group’s Consolidated annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS-EU”) and with Part 9 of Book 2 on the Dutch Civil Code. In preparing the financial information in this document, the
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