Absa Group Limited · JSE:ABG
Absa — Investor Presentation (June 2019)
17 slides from Absa's investor presentation, Jun 6, 2019
Slide 1: Absa Group Separation: Investor Update
Absa Group Separation: Investor Update 6 June 2019 Paul O’Flaherty and Willie Van Zyl
Slide 2: Overview and Background
Overview and Background Paul O’Flaherty 01
Slide 3: Engineering Services Structure
Engineering Services Structure Paul O’Flaherty Chief Executive: Engineering Services Absa Group Limited Andrew Baker Wilhelm Krige Sandro Bucchianeri Dawn Mthombeni Willie van Zyl Thabo Mashaba Chief Technology Officer: Chief Information Officer: Chief Security Officer: Chief Risk Officer: Engineeri
Slide 4: Significant planning and mobilisation created a solid platform
Significant planning and mobilisation created a solid platform • All key programme milestones have been completed • Dedicated leadership team and operational Separation team: • Currently c. 1000 permanent staff working on Separation • c. 800 contractors assigned to the programme Robust Governance St
Slide 5: Integrated plan developed to address all dependencies on Barclays
Integrated plan developed to address all dependencies on Barclays • Documented all “touchpoints” or dependencies with Barclays, which were then mapped into logically 2099 Touchpoints clustered services rendered by Barclays. • Identified capabilities required to be stood up, then mapped these back to
Slide 6: 100% coverage of Separation platinum projects and other key interdependent projects
Combined assurance articulated key risk based components 100% coverage of Separation platinum projects and other key interdependent gold/silver/bronze projects. Objective Approach • Assess and report on the ongoing readiness of Separation projects • A combined scope is agreed and a single quarterly
Slide 7: Execution Update
Execution Update Willie Van Zyl 02
Slide 8: Delivery remains on track with significant progress on 2019 book of work
Delivery remains on track with significant progress on 2019 book of work 69% 69% • Migration of core banking application for relevant Africa Regional Operations entities 184 out of 266 projects have 137 out of 198 services have from the UK to SA was delivered in mid April delivered to date been term
Slide 9: Remaining critical path projects to deliver in 2019 and 2020
Remaining critical path projects to deliver in 2019 and 2020 58% 59 out of 102 Critical Path H1 2019 H2 2019 2020 projects have already been delivered, with 43 Jan -Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June remaining AD Application Migration Security Environment Controls (PAM OS) AD App
Slide 10: Original Africa Regional Operations Architectural view
Original Africa Regional Operations Architectural view Services are spread across Barclays PLC, South Africa and country as we go through the separation programme. ARO TECHNOLOGY Customer and client channels Service-orientated Core banking and accounting architecture BRANCH SYSTEMS CORE BANKING Reta
Slide 11: Current Africa Regional Operations architectural view
Current Africa Regional Operations architectural view Services are spread across Barclays PLC, South Africa and country as we go through the separation programme. ARO TECHNOLOGY Customer and client channels Service-orientated Core banking and accounting architecture BRANCH SYSTEMS CORE BANKING Retai
Slide 12: Africa Regional Operations future state
Africa Regional Operations future state We will transition to future state incrementally by building and testing new functionalities while decommissioning the old components. Important: This decommissioning process will only be initiated after separation is complete. ARO TECHNOLOGY Customer and clie
Slide 13: A combination of solutions improve competitiveness and strategic alignment
A combination of solutions improve competitiveness and strategic alignment Approximately half of the BoW is considered new or transformative in nature, or a hybrid of refreshed systems withHeading transformative elements 51% 49% All solution combinations delivered by Separation are designed to leave
Slide 14: Conclusion
Conclusion Paul O’Flaherty 03
Slide 15: Separation is still expected to be capital and cash flow neutral
Separation is still expected to be capital and cash flow neutral Separation spend and remaining contribution – Spend to date 30 April 2019 (Rbn) • Project spend on execution and programme support as at April 2019 is R8.5bn. 8.5 • Spend is mainly attributable to: • Group systems rebuild • Technology
Slide 16: Leveraging the Separation legacy to deliver on strategic intent
Leveraging the Separation legacy to deliver on strategic intent Separation programme legacy Robust group change function People • Group change governance capability for a digitally-led bank to: • Specialist resources and skills • Enhance and sustain productivity gains • Senior Management focus on ut
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