Challenger Limited · ASX:CGF
Challenger — Challenger Financial Services Group — UBS Financial Services Conference 2005
15 slides from Challenger's conference presentation, Jun 23, 2005
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Slide 2: Presentation to UBS Financial Services Conference
€2 challenger Financial Services Group Challenger Financial Services Group Limited Presentation to UBS Financial Services Conference Michael Tilley, CEO 23 June 2005
Slide 3: ~ Summary financials
€2 challenger Financial Services Group 4 ~ Summary financials 7 Meeting objectives 8 Drivers of value 13 Summary 14
Slide 4: ndlog
€2 challenger Financial Services Group ndlog re) ee Gs Challenger manages quality assets, offers competitive financial products and services to clients via intermediaries, and provides reliable wealth advice to individuals Le
Slide 5: Intermediaries & their clients
€2 challenger Financial Services Group ytermediaries & their clients
Slide 6: Market leader in long term annuities
Market leader in long term annuities Non-bank market leader in white-labei prime & non- conforming residential lending Funds under management increase 25% to $7.0bn in 12 months to 31 March 2005 before HSBC Underlying asset base $3bn ! Market leader in mortgage processing across product lines Divers
Slide 7: Summary financials
€2 challenger Financial Services Group 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): e Historic cost before goodwill 8.87 cents 1.83 cents Total assets 5,168 5,676 Net a
Slide 8: What's been said
€2 challenger Financial Services Group What's been saic Building an integrated financial services company '. Cleaning up the past « Focused on costs to reduce cost to income ratio e« Creating synergies between our businesses « Leveraging our strengths « Guidance ~ RONA 18% target (June 04 net assets
Slide 9: Actions taken to re-enforce focus on core businesses
€2 challenger Financial Services Group | aken 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
Slide 10: Wholesale Finance and Wealth Management growth
challenger Financial Services Group Gross assets less senior debt Challenger Wholesale Finance 2 Portfolio showing consistent growth 5 e se £ includes Interstar Prime, Interstar Non-Conforming & Commercial Lending) DE DED DE HE DED EH A dm Ok OO OD PSE DES PEDAL DGGE DE GT GG? FEW GPS Y VHF GH KEW {
Slide 11: Highlights by business
ii €2 challenger Financial Services Group anagemen Diversification of assets - $430m committed to global infrastructure in 10 months Growing margins in competitive operating environment HSBC acquisition and integration on schedule for July 2005 Annuity sales of $586m in 9 months to March 2005 - an i
Slide 12: Priorities by business
12 €2 challenger Financial Services Group enger 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 Ch
Slide 13: Drivers of value & priorities
. ee oe & challenger Drivers of value & priorities Strict cost control & increasing revenue = Scale dividend Leveraging synergies across the business = Experience dividend Increasing capital management efficiency = Shareholder dividend Maximising the interest spread between cost of continuing servic
Slide 14: Strategy is to build core business lines via organic & bolt-ons
€2 challenger Financial Services Group > Strategy is to build 3 core business lines via organic & bolt-ons “at a reasonable price = Focus on improving margins ahead of growth » Shared, scalable, quality services provide our comparative advantage »> Clear, simple, strategic plan on track CGF results
Slide 15: Questions
€&2 challenger pe. Financial Services Group a L al cual ES: Cees ne aL | Ce LS ae a Questions Dy Le Za NG De 15
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