Hansard Global Plc · LSE:HSD
Hansard Global — FY2020 Earnings Presentation
22 slides from Hansard Global's earnings presentation, 2020
Slide 1: Full Year Results
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Slide 2: Disclaimer
This presentation does not constitute an invitation to subscribe for or otherwise to acquire or dispose of shares in Hansard Global plc. This presentation may contain forward-looking statements with respect to certain of the plans and current goals and expectations relating to the future financial c
Slide 3: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy FY 19/2020 1
Slide 4: Overview
OV E RV I E W Assets under New Business of IFRS profit before Administration £159.8m PVNBP tax of £4.7m of £1.08bn (2019: £155.9m) (2019: £4.6m) (2019: £1.08bn) Japan proposition New administration Final dividend maintained progressing through system on-track for at 2.65 per share review and testing
Slide 5: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy FY 19/2020 3
Slide 6: Implementing Our Growth Strategy
IMPLEMENTING OUR G RO W T H S T R AT E G Y SHORT TERM (WITHIN 12 MONTHS) MEDIUM TERM (12-24 MONTHS) LONG TERM (24+ MONTHS) • Japanese proposition to be launched • Expansion of Japanese • Extension of Japan-style with first distribution partner proposition to additional proposition, globally • Ration
Slide 7: Japan Route to Launch
J A PA N ROUTE TO LAUNCH BUILDING BLOCKS IN PLACE ROUTE TO LAUNCH POST LAUNCH BUILD • Investment management licence acquired in June 2019 • Sign-off of detailed operational • Additional distribution • Registration statement filed to place back-book within the processes, system testing and agreements
Slide 8: Building New Business
BUILDING NEW BUSINESS New Business in the Middle East & Africa continued to grow Changes to regulation in UAE take effect on 16th October 2020 Due to repositioning towards locally licensed business in the FY 20 v FY 19 Far East, new business continued to fall in 2020 PVNBP New business in Latin Amer
Slide 9: Covid-19 Approach to New Business
COVID-19 APPROACH TO NEW BUSINESS • New Business Q4 2020, although up on Q3 2020, was down 13.2% on Q4 2019 largely down to the effects of COVID-19 • A range of initiatives launched early in Q4 to help policyholders and distributors through the COVID-19 crisis • Online verification of customers • Fl
Slide 10: Marketing Through Covid-19
MARKETING THROUGH COVID-19 ‘ K E E P I N G T H E C O N V E R S AT I O N G O I N G ’ Maintaining an on-going dialogue with distributors throughout the Covid-19 pandemic has been a priority, communicating Hansard’s plans, offering support and reassurance via various communication channels. Webinars wi
Slide 11: Hansard Europe Litigation
H A N S A R D E U RO P E L I T I G AT I O N Group action in Italy related to illiquid assets continues to grow, however expected to be substantially covered by insurance. First payment on account of legal costs received in FY 2020. Large case in Belgium on-hold pending separate third- party Supreme
Slide 12: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy FY 19/2020 9
Slide 13: Results FY 2019/20: Summary Results
R E S U LT S FY 2019/20 Summary Results FY 2020 FY 2019 New business sales – PVNBP £159.8m £155.9m New business margin (0.1 %) (0.6 %) IFRS profit before tax £4.7m £4.6m Underlying IFRS profit £6.2m £6.1m Operating cash surplus £22.7m £20.6m Assets Under Administration £1,081m £1,080m Value of In-Fo
Slide 14: Results FY 2019/20: New Business
R E S U LT S FY 2019/20 New Business FY 2020 FY 2019 Present Value of New Business Premiums £m £m Strong sales in LatAm and UAE. Regular premiums 102.0 85.5 Focus on regular Single premium 57.8 70.4 premiums. PVNBP 159.8 155.9 Plan to address the improvement of new business margins via: Annual Premi
Slide 15: Results FY 2019/20: 5 Year Trend
R E S U LT S FY 2019/20 Assets under Administration 5 year trend 1200 Hansard International 1000 continues upward 966 987 trend 800 913 878 AuA £M Hansard Europe closed 600 749 to new business in 2013. 400 200 0 174 171 123 114 94 2016 2017 2018 2019 2020 Year Hansard International Hansard Europe 12
Slide 16: Results FY 2019/20: Cash Flows
R E S U LT S FY 2019/20 Cash Flows FY 2020 FY 2019 £m £m Operating cash surplus Operating cash surplus 22.7 20.6 in year ended 30 June Interest and other income 1.6 1.4 30 22.7 25 Cash inflow from operations 24.3 22.0 20 Investment in new business (19.1) (17.5) £m 15 Capital expenditure (3.0) (2.5)
Slide 17: Results FY 2019/20: Available Cash
R E S U LT S FY 2019/20 Available Cash Shareholder cash balances at 30 June FY 2020 FY 2019 90 80 £m £m 70 60.8 60 50 £m 40 Total Group cash and deposit balances 60.8 65.3 30 20 Less net shareholder payables (3.7) (4.1) 10 0 Less policyholder claims payable (23.9) (24.2) 2016 2017 2018 2019 2020 Les
Slide 18: Results FY 2019/20: Abridged Income Statement
R E S U LT S FY 2019/20 IFRS - Abridged income statement FY 2020 FY 2019 £m £m Fees and commissions Increased HI business levels leading to higher - Hansard International 41.4 39.9 fee income and higher origination costs. - Hansard Europe 3.3 3.9 HE continues to run-off 44.7 43.8 its business having
Slide 19: Results FY 2019/20: Abridged Balance Sheet
R E S U LT S FY 2019/20 IFRS - Abridged balance sheet FY 2020 FY 2019 £m £m Deferred origination costs 122.3 118.0 Other assets 16.4 10.1 Shareholder cash and bank deposits 60.8 65.3 Total assets 199.5 193.4 Deferred income 137.8 133.2 Other payables 35.8 33.0 173.6 166.2 Net assets 25.9 27.2 Shareh
Slide 20: Results FY 2019/20: Own Funds
R E S U LT S FY 2019/20 Own Funds Own Funds Own Funds Own Funds FY 2019 FY 2019 FY 2019 Value of in-force has (restated) been relatively stable on a like for like basis. £m £m £m Net Worth incorporates a deduction for Value of In-Force 147.9 145.4 139.9 probabilistic outcomes for litigation. It also
Slide 21: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy FY 19/2020 18
Slide 22: Summary
S U M M A RY IFRS Year-on –year new business Japan development IFRS profit before tax of growth despite set-back progressing despite £4.7m (2019: £4.6m) of Covid-19 in Q4 Covid-19 challenges 2.65p Upgrading systems to Expanding Hansard Europe Final dividend achieve significant cost litigation in Ita