Hansard Global plc · LSE:HSD
Hansard Global — FY2016 Earnings Presentation
32 slides from Hansard Global's earnings presentation, September 2016
Slide 1: Welcome - Full Year Results 2015/16
WELCOME F U L L Y E A R R E S U LT S 2 0 1 5 / 1 6 1
Slide 2: Introduction & Overview
Introduction & Overview Our Business Strategy Results FY 2016 New Business Plans Summary Questions 2
Slide 3: Presenters: Gordon Marr, Tim Davies, Graham Morrall
Gordon Marr Tim Davies Graham Morrall Global Sales & Chief Executive Officer Chief Financial Officer Marketing Director 3
Slide 4: Overview – FY 2016 Highlights
Overview – FY 2016 Highlights New Business of Return to Total customer Assets under £119.3m PVNBP positive new contributions up 23% Administration of for the year business margin of 0.2% with withdrawals £923m (2015: £907m) (2015: £60.6m) (2015: -6.2%) down 9% Underlying IFRS Positive process Contin
Slide 5: Our Business Strategy
Introduction & Overview Our Business Strategy Results FY 2016 New Business Plans Summary Questions 5
Slide 6: Our business strategy
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 clients 6
Slide 7: Strategic objectives
Strategic objectives More long-term relationships Better value for customers with distributors A more visible profile in the market Excellent customer service Market leading online Motivated & engaged systems workforce 7
Slide 8: Hansard Europe
Hansard Europe Operating model • Fee income reducing as business runs-off, although remains profitable • Transfer of legal function to head office • Moving to smaller serviced offices this month as old lease expires Capital • Implementation of Solvency II from 1 January 2016 – solvency capital requi
Slide 9: Results FY 2016
Introduction & Overview Our Business Strategy Results FY 2016 New Business Plans Summary Questions 9
Slide 10: Results – FY2016 Summary Results
Results – FY2016 Summary Results FY 2016 FY 2015 New business sales – PVNBP £119.3m £60.6m New business margin 0.2 % (6.2)% Operating cash surplus £15.9m £24.3m Underlying IFRS profit after tax £9.2m £12.0m IFRS profit after tax £8.3m £14.9m EEV Operating loss after tax (£1.1m) (£6.3m) Final dividen
Slide 11: Results – FY2016 New Business
Results – FY2016 New Business FY 2016 FY 2015 Present Value of New Business Premiums £m £m Regular premiums 65.6 36.8 Single premium 53.7 23.8 RP and SP sales both increased PVNBP 119.3 60.6 substantially. Annual Premium Equivalent (“APE”) 18.7 9.7 New business margin recovered to positive New Busin
Slide 12: Results – FY2016 Cash Flows
Results – FY2016 Cash Flows Operating cash surplus in year FY 2016 FY 2015 50 ended 30 June £m £m 40 Operating cash surplus 15.9 24.3 £m 30 20 15.9 Interest and other income 1.0 1.0 10 Cash inflow 16.9 25.3 0 Investment in new business (15.4) (8.6) 2012 2013 2014 2015 2016 Corporation tax (paid) / r
Slide 13: Results – FY2016 Free Cash
Results – FY2016 Free Cash FY 2016 FY 2015 £m £m Total Group cash + deposit balances 76.6 80.9 Headline cash Net shareholder payables (2.2) (2.1) balance is allocated Policyholder claims payable (20.7) (17.3) to a number of constituents before Regulatory reserves (4.5) (4.5) true free cash can be Mi
Slide 14: Results – FY2016 Assets under Administration
Results – FY2016 Assets under Administration Development HI and HE AuA 5 year trend HI HE HI: AuA reflecting 800 increased new 700 742 749 business and 719 705 700 improved FX 600 translation post 500 AuA £M Brexit vote. 400 300 HE: Steady decline 314 200 286 after closing to new 239 207 business in
Slide 15: IFRS - Abridged income statement
Results – FY2016 IFRS - Abridged income statement FY 2016 FY 2015 £m £m Fees and commissions 48.4 52.6 Investment and other income 2.7 1.4 Fee income declining as HE book 51.1 54.0 reduces and lower Origination costs (20.2) (20.1) initial fees in HI. Administrative and other expenses, before one-off
Slide 16: IFRS - Abridged balance sheet
Results – FY2016 IFRS - Abridged balance sheet Deferred Origination Costs FY 2016 FY 2015 135 at 30 June £m £m 130 Deferred origination costs 110.9 113.5 125 Other assets 6.5 6.9 £m 120 115 110.9 Shareholder cash and bank deposits 76.6 80.9 110 105 Total assets 194.0 201.3 100 2012 2013 2014 2015 20
Slide 17: EEV – balance sheet
Results – FY2016 EEV – balance sheet FY 2016 FY 2015 £m £m EEV balance sheet as at 30 June Free surplus 27.9 36.5 Net Worth 250 VIF Required capital 27.6 27.0 200 Net worth 55.5 63.5 150 £m 100 Value of future profits 140.4 131.5 50 European embedded value 195.9 195.0 0 2012 2013 2014 2015 2016 EEV
Slide 18: EEV return after taxation
Results – FY2016 EEV return after taxation FY 2016 FY 2015 £m £m Positive new business New business contribution 0.2 (3.7) contribution reflecting increased volumes of Expected return 1.5 1.8 new business. Experience variances (3.8) 2.6 Experience variances Assumptions and other changes 1.0 (7.0) re
Slide 19: New Business Plans
Introduction & Overview Our Business Strategy Results FY 2016 New Business Plans Summary Questions 19
Slide 20: The last 12 months
The last 12 months 8 New Sales People Launched Hansard Online Lite Consolidating Production - Reduced Concentration Risk Continuation in work to increase Market Awareness 16 Funds added to Savings Plans to give 180 Funds 20
Slide 21: More long-term relationships
More long-term relationships Global Sales Middle East In Force Rest of the Latin America Asia & Africa Management World Account Account Managers Account Account Executives Executives Executives Executives 2 in force 2 Account 5 Account managers 6 Account 2 Account Executives Executives Executives Ex
Slide 22: More long-term relationships
More long-term relationships New Business received from 183 Top 10 Distributors accounted Distributors worldwide, of which… for 58% of 2016 Production, of which… Asia RoW 30% 22% 18% 18% New business Distributors increased from 114 at the half year to 183 at year end Lat Am Middle East 26% 12% 26% 4
Slide 23: Rebuilding Distribution (1 July 2013 to end June 2016)
Rebuilding Distribution (1 July 2013 to end June 2016) New Terms of Business set up RoW North Asia +23 +28 (+ 11 2016) (+ 9 2016) SE Asia Lat Am Middle East +19 +14 +48 (+ 9 2016) (+ 9 2016) (+ 16 2016) 23
Slide 24: Improved proposition
Improved proposition • Phase 1 rebuild of our single, regular and ad hoc premium products is now complete • Vantage Platinum II launched in May 2016 • Day 1 Charged Portfolio Bond Z1 launched in August 2016 • Further new products in plan for 2017 New products • Fund review in process • 16 internal f
Slide 25: Readers' Choice: Best international life company Malaysia
© HANSARD READERS’ CHOICE Best international life company Malaysia 25
Slide 26: Summary
Introduction & Overview Our Business Strategy Results FY 2016 New Business Plans Summary Questions 26
Slide 27: Summary
Summary • Underlying IFRS profit of £9.2m (2015: £12.0m) • Strong levels of new business, returning to positive new business margin • Increasing value of future profits within Embedded Value • Final dividend of 5.30p per share (2015: 5.25p) 27
Slide 28: Questions
Introduction & Overview Our Business Strategy Results FY 2016 New Business Plans Summary Questions 28
Slide 29: Raising profile - awareness campaign
Raising profile - awareness campaign Social media campaign Industry publication sponsorship Industry publication coverage Online video interviews 29
Slide 30: Raising profile – product launch
Raising profile – product launch Social media campaign Targeted adviser campaign The Vantage Platinum II launch attracted over 70 new Linkedin followers in just two weeks Industry publication sponsorship 30
Slide 31: Raising profile – other digital campaigns (H2)
Raising profile – other digital campaigns (H2) 31
Slide 32: Raising profile – driving digital engagement
Raising profile – driving digital engagement 32