Nn Group N.v. · EURONEXT:NN
Nn — Q4 2017 Earnings Presentation
24 slides from Nn's earnings presentation, Feb 15, 2018
Slide 1: Fourth quarter 2017 results
Fourth quarter 2017 results 15 February 2018
Slide 2: Highlights
Highlights Lard Friese, CEO
Slide 3: Highlights 4Q17
Highlights 4Q17 Operating result Net result • Higher operating result of the ongoing business driven by the contribution of the Delta Lloyd EUR 345m EUR 700m businesses (4Q16: EUR 282m) (4Q16: EUR 148m) • Net result of EUR 700m mainly driven by higher operating result and non-operating items Net Ope
Slide 4: Integration of Delta Lloyd well on track
Integration of Delta Lloyd well on track February 2017 Tender offer for Delta • Integration of management teams April 2017 Lloyd Offer for Delta Lloyd declared • Several departments fully integrated, many unconditional; business units and teams collaborating May 2017 Senior leadership appointments;
Slide 5: We continue to enhance customer experience through innovation and an omni-channel approach
We continue to enhance customer experience through innovation and an omni-channel approach Innovating the core Digital, personal and relevant customer experience developed at NN and through partnerships Multi-access distribution Collaborations and distribution agreements to further expand and divers
Slide 6: Robust commercial progress
Robust commercial progress New sales (APE) Value of new business NN Investment Partners Banking business (EURm) (EURm) AuM mortgage portfolio (EURbn) (EURbn) Netherlands Life Netherlands Life Third party net flows Insurance Europe Insurance Europe Japan Life Japan Life 0.1 5.1 +34%1 +61% +26% +39% 1
Slide 7: Financial developments in 2017
Financial developments in 2017 Annual earnings1 Administrative expense Net operating RoE Free cash available to growth base2 (%) shareholders versus net (EURm) (EURm) operating result of the ongoing business (EURm) Net operating result +29% 10.3% FCF -133 1,586 2,024 8.1% 1,349 1,891 1,191 1,227 941
Slide 8: Delivering a sustainable dividend
Delivering a sustainable dividend Interim dividend per share (EUR) • Priority is a sustainable ordinary dividend per share Final dividend per share (EUR) Total dividend per share (EUR) • Proposed 2017 final dividend of EUR 1.04 per share, bringing full-year 2017 dividend to EUR 1.66 per share, up 7%
Slide 9: 4Q17 results
4Q17 results Delfin Rueda, CFO
Slide 10: 4Q17 operating result and net result
4Q17 operating result and net result Operating result Operating result to Net result Net result (EURm) (EURm) (EURm) NN Operating result NN 345 ongoing business DL DL Non-operating items1 510 22% Japan CBVA -3 345 Special items -102 700 282 104 Amortisation of 107 -33 acq. intangibles Result on dive
Slide 11: Operating result ongoing business by segment
Operating result ongoing business by segment Operating result of the ongoing business Operating result 4Q17 of EUR 345m, up 22% on 4Q16 (EURm) • Netherlands Life: Operating result up mainly driven by the inclusion of Delta Lloyd and higher investment margin, offset by lower technical margin and fees
Slide 12: Further reduction of the expense base
Further reduction of the expense base Administrative expense base1 (EURm) ~-350 2,024 -40 1 -133 -32 -16 1,891 -5 -42 ~1,675 FY16 NL Life NL Non-life Belgium Asset Bank Corporate/ FY17 Target FY20 expense Management Holding expense expense base base base 1. Netherlands Life, Netherlands Non-life, Be
Slide 13: Free cash flow 4Q17 and FY17
Free cash flow 4Q17 and FY17 4Q17 Free cash flow EUR 336m 370 1,789 32 -45 -21 -117 1,434 -575 FY17 Free cash flow EUR 881m 1,818 413 2,489 58 -597 -397 -665 549 1,434 -2,234 Beginning Cash Dividends Capital Other2 Addition Acquisition3 Capital flow Increase / End of period of period divestment from
Slide 14: Solvency II movement 4Q17
Solvency II movement 4Q17 +5% 0% • Solvency II ratio of 199% reflects the SII ratio 204% 199% deduction of the proposed final 2017 -5% -5% dividend and market variance, partly +0.3 offset by operating capital generation 15.9 -0.2 15.4 • Operating capital generation includes a -0.2 -0.3 contribution
Slide 15: Solvency II movement FY17
Solvency II movement FY17 • Operating capital generation of EUR 1.4bn in 2017 from Solvency II +21% +1% entities, Japan Life, Asset Management SII ratio 241% 199% and pension funds, as well as holding -51% -6% -7% expenses +1.1 +0.7 +2.1 15.4 • Operating capital generation includes a 13.1 -1.1 -0.6
Slide 16: Wrap up
Wrap up Lard Friese, CEO
Slide 17: Key takeaways
Key takeaways 1 4Q17 operating result up 22% on 4Q16; full-year 2017 operating result of EUR 1.6bn 2 Further cost reductions; administrative expense base decreased by EUR 133m in 2017 3 Strong capital position: Solvency II ratio of 199%; holding company cash capital of EUR 1.4bn 4 Proposed 2017 fina
Slide 18: Q&A
Q&A Lard Friese, Delfin Rueda, Jan-Hendrik Erasmus
Slide 19: Appendix
Appendix @s
Slide 20: Breakdown of operating result between NN Group and Delta Lloyd
Breakdown of operating result between NN Group and Delta Lloyd 4Q17 and FY17 operating result before tax (EURm) 4Q17 Total NN Delta Lloyd FY17 Total1 NN Delta Lloyd Netherlands Life 170 132 38 896 773 123 Netherlands Non-life 25 3 23 30 19 11 Insurance Europe 68 53 14 260 235 25 Japan Life 25 25 - 2
Slide 21: Dividends upstreamed
Dividends upstreamed Dividends upstreamed by segments/subsidiaries (EURm) 4Q17 3Q17 2Q17 1Q17 2017 2016 Netherlands Life1 205 168 501 160 1,035 642 Netherlands Non-life1 46 49 5 - 100 154 Insurance Europe1,2 31 15 172 13 230 251 NN Japan Life - - 57 - 57 80 Asset Management 31 33 31 - 96 93 NN Re Ne
Slide 22: Sensitivities of the NN Group Solvency II ratio to specified shocks
Sensitivities of the NN Group Solvency II ratio to specified shocks Δ Solvency II Δ OF Δ SCR Sensitivities to shocks1 at 4Q17 (in EURbn) (in EURbn) ratio (in %-points) Interest rate: Parallel shock +50bps -0.6 -0.4 +4% Interest rate: Parallel shock -50bps +0.7 +0.5 -4% Interest rate: 10bps steepenin
Slide 23: Important legal information
Important legal information NN Group’s Consolidated Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS- EU”) and with Part 9 of Book 2 of the Dutch Civil Code. In preparing the financial information in this document, th
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