Permanent Tsb Group Holdings Plc · EURONEXT:PTSB
Permanent Tsb — Irish Life & Permanent — Goldman Sachs European Financials Conference 2005
29 slides from Permanent Tsb's conference presentation, Jun 8, 2005
Slide 1: Goldman Sachs European Financials Conference
Goldman Sachs European Financials Conference Presentation by David Went, Group Chief Executive Irish Life & Permanent Puerto Banus, Spain 8 June 2005
Slide 2: n Ireland’s growth prospects n Life & pensions market n Distribution channels
n Ireland’s growth prospects n Life & pensions market n Distribution channels n Bancassurance model n Current developments 2
Slide 3: Population growth of 13%
‘000 4,000 Population growth of 13% 3,800 3,600 3,400 3,200 3,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: CSO 3
Slide 4: Employment growth of 62%
‘000 2,000 Employment growth of 62% 1,800 1,600 1,400 1,200 1,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: CSO 4
Slide 5: GDP growth of over 125%
€m 120,000 GDP growth of over 125% 100,000 80,000 60,000 40,000 20,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 * Source: CSO/NCB Constant 1995 Prices GDP 5
Slide 6: Household debt/GDP now 60%
€ Household debt/GDP now 60% 100,000 80,000 60,000 40,000 20,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: NCB 6
Slide 7: Life annual premium growth of 240%
€ Life annual premium growth of 240% 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: IIF 7
Slide 8: 22% increase by 2020
‘000 3,000 3,500 4,000 4,500 5,000 20 05 20 Source: CSO 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 22% increase by 2020 20 17 20 18 20 19 20 20 8
Slide 9: 21% increase by 2020
‘000 1,800 2,000 2,200 2,400 20 05 20 Source: NCB 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 21% increase by 2020 20 17 20 18 20 19 20 20 9
Slide 10: Continuing demographic dividend for financial services
Continuing demographic dividend for financial services - eae ‘Tl .h Le 2 To S - fe BFE ® as en | ‘ie en . : \- ane i] 10
Slide 11: Life market shares by company and distribution
Company Retail Retail & Distribution Corporate Irish Life 20.8% 24.6% Bancassurance IFA DSF BoI Life 25.0% 23.5% Bancassurance IFA DSF AIB - Ark Life 11.3% 8.6% Bancassurance Aviva 10.2% 10.6% IFA Zurich 7.8% 8.0% IFA Canada Life 6.8% 6.3% IFA DSF Friends First 5.0% 6.7% IFA First Active Standard Li
Slide 12: Distribution channels
CHANNEL DIRECT BUSINESS BANCASSURANCE IFAs / BROKERS PARTNERSHIPS Size 250 Advisers 100 ptsb branches 1,000 brokers - Credit Institutions 130 Franchises 70 Consultants multi agents & 400 Branch Staff authorised advisers Market Broad middle market ptsb customers Mass affluent Broad middle market Prod
Slide 13: Sales by channel over time
2004 28% 31% 32% 9% 2002 25% 35% 31% 9% 2000 26% 18% 45% 9% 1998 48% 42% 10% Direct Bancassurance IFAs Partnerships 13
Slide 14: Retail sales and retail market share
€m % 300 22 21 20.8 20 200 19.7 19 18.6 18 17.6 17.6 100 17 16 15.7 0 15 1999 2000 2001 2002 2003 2004 Retail sales Retail market share 14
Slide 15: Acquisition of own network
Acquisition of own network n Loss of market share to bancassurers in 1990s n Merger with Irish Permanent in 1999 Ø Direct access to own branch network Ø Ended First Active tied agency n Acquisition of TSB Bank in 2001 Ø Full service retail bank Ø Expanded customer base 15
Slide 16: Sales 2004 and sales per branch
Sales 2004 €55.1m €100.2m €126.6m No. of branches 100 280 290 Sales per branch €551k €358k €437k 16
Slide 17: Access to other networks
Access to other networks n Provider of “white label” products to other credit institutions n Displaced other providers n Principally protection products tied to mortgages n Lower product penetration than own branches 17
Slide 18: Total integration into banking activities
n Total integration into banking activities n CRM technology support n Sales processes / lead generation n Activity management n Strength of product offerings 18
Slide 19: Total alignment of objectives and targets
n Total alignment of objectives / targets Ø no room for ambiguity Ø consultant / branch manager / staff n Incentives based on targeted branch product mix n Huge investment in staff training Ø 400 licensed counter staff Ø 70 financial consultants 19
Slide 20: Single system for sales and customer view
n Single system for sales, prospecting, diary etc integrated with bank systems n Single customer view n Electronic factfind / needs analysis / financial review at point of sale n Marketing database populated from customer bank records, financial reviews, life policies n Centralised campaign manageme
Slide 21: Customer segments, proposition and who serves them
Segments Proposition Who High Net Portfolio / Expertise Private Client Worth and Service Mass Affluent Full Financial Review Financial Consultant Mass Market Simple Product Based Branch Staff 21
Slide 22: Branch staff versus financial consultant
Branch Staff Financial Consultant n Modular n Full financial review n Simple n Complex n Single needs based n Total Customer/Needs based n Focus n Focus Ø Regular Savings Ø Pensions Ø Investments (<€25k) Ø Protection Ø Mortgage Protection Ø Higher end Investments n Lead generation n Limited prospect
Slide 23: Lead generation
n 1,200 approx. leads generated per week for branch network Ø Central contact centre - 40% Ø Branch staff - 40% Ø Consultants - 20% n Best quality leads direct from branch sales ‘triggers’ n Rigorous activity management to track conversion ratios 23
Slide 24: The Ultimate Customer Experience
The Ultimate Customer Experience n Comprehensive review n Full written report to customer within 2 days n Compliance automated n 95% Customer satisfaction rating n 92% say they would recommend to their friends 24
Slide 25: Product approach and brand
n Simple and jargon free - “Crystal Mark” n Transparent charging n Appropriate products for risk profile of customers n Recognised leading brand to support products n Strong product innovation n Multi-manager - sole distributor for Fidelity in Ireland 25
Slide 26: Sales mix by product
2005 (F) 21% 37% 20% 22% 2004 20% 50% 17% 13% 2003 19% 63% 13% 5% 2002 8% 28% 5% 59% 2001 10% 33% 6% 51% Protection Investment Pension Savings 26
Slide 27: Current developments in branch network
n Centralising branch administration & automating transactions n Transforming network into dedicated sales outlets n Checking account key platform for customer acquisition n 1,000 new customers per week since launch n Expanded opportunity for cross- selling 27
Slide 28: Conclusions
n Ireland - a great place to be in business n Continuing demographic dividend n Distribution reach key to success in market n Bancassurance - well executed - a proven model n IL&P determined to be a winner 28
Slide 29: Contact and further information
A copy of this presentation, the 2004 annual report and other financial information are available on our group website www.irishlifepermanent.ie For further information, please contact: Barry Walsh Head of Investor Relations Tel: +353 1 704 2678 Email: investor.relations@irishlife.ie 29
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