Challenger Limited · ASX:CGF
Challenger — UBS Australian Financial Services Conference 2010
16 slides from Challenger's conference presentation, Jun 24, 2010
Slide 1: Strategies for growth
For personal use only Strategies g for g growth UBS Australian Financial Services Conference - Sydney Brian Benari Group Chief Operating Officer & Group Chief Financial Officer 24 June 2010
Slide 2: Agenda
Agenda For personal use only • How has the Challenger business changed th through h th the GFC and d what h thhave we llearnt? t? • How is the business p positioned to capture p future opportunities and growth? 2
Slide 3: Simplified business structure and strategy
Simplified business structure and strategy For personal use only • In the last two years the Challenger business model evolved • Financial Planning business sold • Fid i Fiduciary operations ti merged d • Finance, administration and operations functions brought together as a single function • Mortga
Slide 4: Core group competencies
Core group competencies For personal use only • Origination of guaranteed income products and fiduciary FUM Origination • Simple, secure products that deliver goodd value l • Managing M i assets t tto maximise i i returns, t Investment benefiting policy holders, fiduciary Management investors and sh
Slide 5: Stress testing the business model
Stress testing the business model For personal use only • GFC tested capital and risk models on a global basis • Simultaneous shocks across capital, market risk factors and treasury management • Identifies strengths and weaknesses • Working through these scenarios successfully builds experience and
Slide 6: Strategy now aligned to structural trends
Strategy now aligned to structural trends For personal use only Potential p positive tailwinds from regulatory reviews Changing consumer risk appetite creating demand for guaranteed capital and income streams Product and distribution initiatives expanding access to superannuation pooll Underlying de
Slide 7: Ageing population driving FUM growth
Ageing population driving FUM growth For personal use only A Australian li population l i growth h 2008 - 2028 7
Slide 8: Expanded product and distribution
Expanded product and distribution For personal use only Investor Long Term Channel B Base G Growth th Guaranteed Income Plan (GIP) Retail IFAs Personal • Established annuity product – fixed rate and term certain / SMSFs Guaranteed Income Fund Changing (GIF) demographic, Retail risk appetite IFAs / •
Slide 9: Increasing awareness and reach
Increasing awareness and reach For personal use only • National roadshow post budget in May • Seven state capitals over one week • ~1,250 attendees 9
Slide 10: Tools to support growth - annuity simulator
Tools to support growth - annuity simulator For personal use only Technology to support retirement planning / portfolio construction 10
Slide 11: Innovation – new lifetime products
Innovation – new lifetime products For personal use only • Lifetime annuity protects against risks but without sacrificing return or flexibility – Protects P against i llongevity i and d iinflation fl i – Guaranteed return at an attractive rate – Guaranteed withdrawal right – Overall pricing will re
Slide 12: Product innovation – GIR
Product innovation – GIR For personal use only Six Monthly Sales of Guaranteed Product Forecast 1,250 • New product introduced in 1,000 1H10 to provide institutional 750 $m clients with guaranteed index 500 returns 250 – ~$600m written since Dec 09 0 Jun Dec Jun Dec Jun Dec Jun Dec Jun – Another $65
Slide 13: Growing FUM via boutique partnerships
Growing FUM via boutique partnerships For personal use only Boutique q Partnerships p – FUM • Boutique partnerships 5,000 expanded to eight, 4,500 including new additions 4,000 • Model supports growth in FUM and therefore 3,500 operational leverage g 3 000 3,000 • Provides stronger $m 2,500 alignmen
Slide 14: Established and diverse franchise
Established and diverse franchise For personal use only Business Investment Date Asset Class Investment Thesis International Concentrated, non-index approach to building Sep 2005 equities portfolios of listed global companies Style neutral manager that seek to invest in small Aus equities q ((small
Slide 15: Summary
Summary For personal use only • St Streamlined li d and d simpler i l IInvestment t tMManagementt business model – Leading and differentiated models in both retirement income and boutique funds management • Continued focus on product development and organic origination – Expect total sales of guaran
Slide 16: For personal use only
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Challenger — UBS Australian Financial Services Conference 2010 on 6ix