Slide 1: Full Year Results 2017/18
FULL YEAR RESULTS 20 | 7/ | 8 HANSARD GLOBAL PLC
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
AG E N DA Introduction & Overview Our Business Strategy Results 2017/18 New Business Summary 3
Slide 4: Overview – FY 2018
O V E RV I E W – F Y 2 0 1 8 New Business of IFRS profit Operating cash Value of future £146.6m PVNBP of £6.8m surplus of £25.0m profits of £135.3m (2017: £148.3m) (2017: £7.7m) (2017: £22.7m) (2017: £146.3m) Assets under Hansard Worldwide Nearing completion of Final dividend of 2.65p Administration
Slide 5: Agenda
AG E N DA Introduction & Overview Our Business Strategy Results 2017/18 New Business Summary 5
Slide 6: Strategic Progress
S T R AT E G I C P R O G R E S S Strategy team • Capitalise on near term strategic opportunities; assigned three • Ensure the Group is correctly positioned for future regulatory developments and change; main aims • Consider and plan for longer term industry and technological evolution. Key Area of F
Slide 7: Japan & Hansard Europe
J A PA N & H A N S A R D E U RO P E Japan • Close to completion of final regulatory application. • Continue to believe this market represents a major opportunity Hansard • Fee income and policy count continue to run-off broadly in line with expectations. Europe • Exposures from outstanding writs of
Slide 8: Agenda
AG E N DA Introduction & Overview Our Business Strategy Results 2017/18 New Business Summary 8
Slide 9: Results - FY 2018: Summary Results
R E S U LT S - F Y 2 0 1 8 Summary Results FY 2018 FY 2017 New business sales – PVNBP £146.6m £148.3m New business margin (0.7 %) 0.9 % Operating cash surplus £25.0m £22.7m IFRS profit after tax £6.8m £7.7m Underlying IFRS profit £8.6m £9.8m EEV operating loss after tax (£13.7m) (£8.2m) EEV (loss) /
Slide 10: Results - FY 2018: New Business
R E S U LT S - F Y 2 0 1 8 New Business FY 2018 FY 2017 Present Value of New Business Premiums £m £m Increased SP sales offset by reduced RP Regular premiums 70.2 75.3 sales. Single premium 76.4 73.0 New business margin has turned negative PVNBP 146.6 148.3 due to combination of sales levels, busine
Slide 11: Results - FY 2018: Assets under Administration
R E S U LT S - F Y 2 0 1 8 Assets under Administration 5 year trend 1000 800 878 913 HI: Continuing growth HE: Declining in line 749 600 705 700 AuA £M with run-off expectations 400 200 239 207 174 171 0 123 2014 2015 2016 2017 2018 Year HI HE 11
Slide 12: Results - FY 2018: Operating cash surplus and cash flows
R E S U LT S - F Y 2 0 1 8 Operating cash surplus Cash Flows in year ended 30 June 40 FY 2018 FY 2017 25.0 £m £m 30 Operating cash surplus 25.0 22.7 £m 20 Interest and other income 1.3 1.0 10 Cash inflow 26.3 23.7 0 2014 2015 2016 2017 2018 Investment in new business (18.5) (17.4) Total cash balance
Slide 13: Results - FY 2018: Available Cash
R E S U LT S - F Y 2 0 1 8 Available Cash FY 2018 FY 2017 £m £m Total Group cash + deposit balances 69.4 71.6 Headline cash balance is allocated to a number of Net shareholder payables (3.9) (2.9) constituents before available cash can be Policyholder claims payable (23.7) (22.8) identified. Availab
Slide 14: IFRS - Abridged income statement
R E S U LT S - F Y 2 0 1 8 IFRS - Abridged income statement FY 2018 FY 2017 £m £m Fees and commissions - Hansard International 42.4 42.6 Fee income reduced by - Hansard Europe 4.8 5.7 declining HE book. 47.2 48.3 Administrative expenses increased due to Investment and other income 1.5 1.5 employee-r
Slide 15: IFRS - Abridged balance sheet
R E S U LT S - F Y 2 0 1 8 IFRS - Abridged balance sheet FY 2018 FY 2017 £m £m Deferred origination costs 113.8 111.6 Other assets 8.0 7.3 Shareholder cash and bank deposits 69.4 71.6 Total assets 191.2 190.5 Deferred income 130.3 129.2 Other payables 32.4 29.6 162.7 158.8 Net assets 28.5 31.7 Share
Slide 16: EEV balance sheet
R E S U LT S - F Y 2 0 1 8 EEV balance sheet as at 30 June 250.0 EEV – balance sheet FY 2018 FY 2017 200.0 44.5 £m £m 150.0 £m 100.0 135.3 50.0 Free surplus 16.9 21.4 0.0 2014 2015 2016 2017 2018 Required capital 27.6 27.8 EEV per share = 131p Net worth 44.5 49.2 (2017: 142p) Value of future profits
Slide 17: EEV return after taxation
R E S U LT S - F Y 2 0 1 8 EEV return after taxation FY 2018 FY 2017 £m £m New business contribution negative this New business contribution (1.0) 1.3 year due to less favourable business mix Expected return 0.8 0.8 and increased expenses. Experience variances (3.8) (4.7) Experience variances and as
Slide 18: Agenda
AG E N DA Introduction & Overview Our Business Strategy Results 2017/18 New Business Summary Questions 18
Slide 19: New Business - FY 2018
NEW BUSINESS - FY 2018 Middle East & Africa continued to deliver more high quality business through our PVNBP locally licensed partner in the UAE Repositioning towards locally licensed business in the Far East. Reduced regular premium new business in that region -1.1% Latin American new business gre
Slide 20: Agenda
AG E N DA Introduction & Overview Our Business Strategy Results 2017/18 New Business Summary 20
Slide 21: Summary
R E S U LT S - F Y 2 0 1 8 S U M M A RY • IFRS profit of £6.8m (2017: £7.7m) – year of investment and repositioning • Continuing positive progress in growing locally licensed distribution channels • Gross litigation exposures have increased, but trend of rulings is positive for ultimate resolution •