Legal & General Group Plc · LSE:LGEN
Legal & General — Investor Presentation (April 2016)
19 slides from Legal & General's investor presentation, Apr 18, 2016
Slide 1: Legal & General Capital
2016 Legal & General Capital Mark Gregory 18 April 2016
Slide 2: Legal & General Capital
Legal & General £233m +15% Capital 16% Mark Gregory Group Chief Financial Officer LEGAL & GENERAL GROUP PLC | YEAR END RESULTS | MARCH 2016
Slide 3: Sellside analyst teach-in on Legal & General Capital (LGC)
Sellside analyst teach-in on Legal & General Capital (LGC) • • •
Slide 4: LGC: Important and growing part of the Group
LGC: Important and growing part of the Group ASSET MANAGEMENT INSURANCE Operating Profit (£m) 2015 2014 Operating Profit (£m) 2015 2014 Insurance Legal & General Investment • 293 370 Management 355 321 • • • Legal & General Retirement Legal & General America 83 56 639 428 • • TOTAL 376 426 Legal & G
Slide 5: Legal & General Capital: Financial overview
Legal & General Capital: Financial overview FINANCIAL HIGHLIGHTS 2015 2014 187 162 • 233 203 • 4.2 3.9 • 867 700 3,213 3,704 1,585 718 5,665 5,122 LGC DIRECT INVESTMENTS LGC TRADED PORTFOLIO 2015 Operating profit2 £69m £154m
Slide 6: Legal & General Capital
Legal & General £867m Capital +33% £69m Paul Stanworth Managing Director – Legal & General Capital LEGAL & GENERAL GROUP PLC | YEAR END RESULTS | MARCH 2016
Slide 7: Capital: Evolution to Asset Manufacturing
Legal & General Capital: Evolution to Asset Manufacturing 2016 and 2013 2014 2015 beyond 156 196 223 4.1 5.0 5.3 3.8 3.9 4.2 351 700 867 Creating multiple drivers LGC Established New Strategic Objectives of value for the Group Three key functions; 1) Refocused to increase risk adjusted returns on 1)
Slide 8: Multiple drivers of value to the Group beyond LGC's NAV
Multiple drivers of value to the Group beyond LGC’s NAV Legal & General Capital Principal Investor Long term Long term assets Asset assets creation Legal & General Retirement LGIM Real Assets Direct Investor Asset Management Creating matching assets for long- Expertise and management of third dated
Slide 9: UK Regeneration case study: Cardiff Central Square
UK Regeneration case study: Cardiff Central Square SCHEME VISUALISATION LGR BBC Wales HQ long term lease Up to asset £83m £400m No1 Central (LGC, LGR Square: LGC and LGIM) LGC £38m • 8 further SUMMARY • dev plots Potential (LGC, LGR for £200m LGIM and LGIM) debt • L&G OPPORTUNITY LGC Fees LGR: Actua
Slide 10: Sector focus where large funding gap exists
Sector focus where large funding gap exists Sector Opportunity LGC Gross Investment Development (£m) Value (£m) UK • REGENERATION • UK HOUSING • • CLEAN ENERGY • • ALTERNATIVE • FINANCE •
Slide 11: Key UK housing businesses
Key UK housing businesses Build to Sell CALA £174m Build to Rent Legal & General Homes PGGM Launched Feb 2016 UK HOUSING Current pipeline now Modular housing c800 homes £30m Development of Strategic Landbank Crowthorne £88m In addition £53m of landbank and other assets
Slide 12: CALA Homes
CALA Homes 30 Jun 30 Jun FINANCIAL HIGHLIGHTS 2015 2014 Total group revenue (£m) 512 285 79% Profit before tax1 (£m) 51 27 90% House sales gross margin 23.4% 22.8% 60bps Operating margin 14.3% 13.6% 70bps Return on capital employed 18.4% 14.9% 350bps Home Completions 993 743 34% Average selling pric
Slide 13: Key urban regeneration projects
Key urban regeneration projects Cardiff Completed 2016 (Committed to £38m) Leeds Media City URBAN Jul 2015 REGENERATION Mar 2015 £26m £119m Bracknell Jan 2015 £88m In addition £113m invested in urban regeneration funds N.B. December valuations
Slide 14: Legal & General Capital
Legal & General Capital ¢ Continuing to grow in the four identified sectors * Going up the value chain for assets Legal & General would have owned anyway ¢ Unlocking 10x its value in the creation of assets for LGR, LGIM and other third parties * Increasingly important profit centre for the group goi
Slide 15: Appendices
Appendices LEGAL & GENERAL GROUP PLC | YEAR END RESULTS | MARCH 2016
Slide 16: Case Study: PGGM Build to Rent Joint Venture
Case Study: PGGM Build to Rent Joint Venture • • • • MARCH 2016 16
Slide 17: Our Partners
Our Partners £ PEMBERTON Connecting Capital Across Europe se ud Scarborough Group International Homes & Communities Agency #8 Schroders on PEEL zs ulin PATRON CAPITAL PARTNERS ae UK Trade & Investment
Slide 18: Forward looking statements
Forward looking statements This document may contain certain forward-looking statements relating to Legal & General Group, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty
Slide 19: Mark Gregory
Mark Gregory LEGAL & GENERAL GROUP PLC | YEAR END RESULTS | MARCH 2016
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