Tower Limited · NZX:TWR
Tower — Shareholder Meeting (February 2005)
22 slides from Tower's shareholder meeting presentation, Feb 10, 2005
Slide 1: TOWER Limited 2005 Annual Meeting cover letter
10 February 2005 Market Information Company Announcements Office New Zealand Exchange Limited Australian Stock Exchange Limited ASB Bank Tower Exchange Centre Level 9, 2 Hunter Street Level 6, 20 Bridge Street Wellington Sydney NSW 2000 NEW ZEALAND AUSTRALIA ARBN 088 481 234 Incorporated in New Zeal
Slide 2: AGM Speech
TOWER AGM SPEECH Ladies and Gentlemen, welcome to the TOWER Limited Annual General Meeting which will consider the accounts of the Group for the year ended 30 September 2004 and will also allow you, the shareholders, to question the Board about the conduct of the business. We decided to hold the AGM
Slide 3: Chairman's thanks and handover
It would be remiss of me not to thank our dedicated management and staff who have worked assiduously to deliver the improved result on which we now report. Recovery processes are never easy and the staff have showed a resilience and capability that is commendable. Finally, | wish to thark my Board c
Slide 4: Annual Meeting, Auckland, February 2005
TOWER Limited Annual Meeting Auckland, 10 February 2005 Keith Taylor — Group Managing Director
Slide 5: 2004 Highlights
2004 Highlights » Major turnaround in financial performance » Strong profit recovery in TOWER Australia »» Solid earnings growth in New Zealand » Strong inflows for both Bridges and TOWER Trust » Successful $75 million Capital Notes issue — repayment of bank debt Superior investment returns - TOWER
Slide 6: 2004 Operating Environment
2004 Operating Environment More favourable but challenging Strong investment returns Stronger than anticipated economic growth Rising New Zealand and Australian dollars vy VY VY VY YV Increased regulatory and compliance oversight 4 TOWER
Slide 7: Financial Highlights
Financial Highlights ce FY04 | FYO3 » Operating Earnings $27.9 million VS ($9.7) million » Net Profit After Tax”) $54.6 million VS ($148.9) million » Assets Under Management® $22.6 billion up $2.7 billion ™» Earnings per share 13.4 cents Amounts in New Zealand dollars {1) Includes accounting change
Slide 8: 2004 Results
TOWER - 2004 Results Underlying Operating Earnings H1 02 H2 02 H1 03 H2 03 H1 04 H2 04
Slide 9: Share Price October 2003 – January 2005
TOWER - Share Price r 1 October 2003 — 31 January 2005 ; NZ$ 2.50 2.00 1.50 1.00 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05
Slide 10: Operating Highlights
Operating Highlights » TOWER Australia — Strong turnaround in performance and value driven by sales growth, reduced lapses and lower expenses » TOWER NZ -— Solid investment returns, especially in domestic asset class — Insurance sales growth maintained » Australian Wealth Management — Strong inflows
Slide 11: 2004 Results: NPAT by Division
TOWER — 2004 Results NPAT by Division TOWER Australia 12.7 10.5 (13.1) TOWER New Zealand 8.9 11.2 23.0 Australian Wealth Management 9.0 7.7 11.4 Total Operating Companies 30.6 29.4 21.3 Head Office (4.4) (4.5) (20.3) Finance Costs (5.2) (4.7) (20.7) Amortisation, revaluation & Other 13.1 0.3 ; (129.
Slide 12: New Zealand
TOWER New Zealand Key Drivers TOWER » TOWER Life (NZ) profit increased from NZ$2.1m to NZ$5.2m — Increased group risk sales (+25%) and improved retention rates — In-force premiums increased by 16% since September 2003 %» TOWER Health and Life increased its annual profit by 25% to NZ$10m — Improved p
Slide 13: Australia
TOWER Australia Progress 35 (ASmiltion) Sep 02 Mar03 Sep03 Mar04 Sep 04 Sep02 Mar03 Sep03 Mar04 Sep 04 10 (A$mittions} 30 N a N S a 10 Sep02 Mar03 Sep03 Mar04 Sep 04
Slide 14: Australian Wealth Management
Australian Wealth Management Key Drivers } TOWER » Bridges — FUM up A$590 million to A$3.9 billion due to increased net flows and market growth — Integration of ToCUA improves effectiveness and reduced costs — Increase in planner numbers ® Tower Trust — UM increased by A$650 million primarily due to
Slide 15: AWM Spin-off
AWM Spin-off Key Features » TOWER will transfer Bridges and TOWER Trust into a new company, AWM, in exchange for: — 120 million $1.00 shares; and — acash payment of $130 million > AWM shares transferred to TOWER shareholders, in consideration for an approximately equivalent value of TOWER shares » A
Slide 16: The New AWM
The New AWM Overview » AWM is forecast to generate NPAT of A$16.6 million in 2005 » AWM's balance sheet will be ungeared, following the capital raising and cash payment to TOWER » AWM's businesses after separation will comprise: — Bridges — wealth management: * FY04 revenue A$41.2 million, NPAT A$12
Slide 17: The New AWM (cont.)
The New AWM Overview (cont.) » AWM's Board will initially comprise TOWER’s Board together with Mr Michael Jefferies » Following the Entitlements Offer, it is intended the Board will be restructured — Three new Australian independent Directors will be appointed — Existing Directors will resign, other
Slide 18: The New TOWER
The New TOWER Overview TOWER'’s businesses after the separation of AWM will comprise: » TOWER New Zealand — risk insurance and funds management: — Pro-forma FY04 NPAT was NZ$20.1 million — Second largest health insurer; 9.4% general insurance market share, 5.6% new business and 5.9% in-force life ri
Slide 19: Summary
Summary Good financial result following two years of losses Rebuilt business on a sustainable basis Value improvements driven by sales, lower expenses, and retention Profit follows value vy VY VY VY YV Strong growth emphasis — Continued organic growth plus acquisitions / alliances » Very focused and
Slide 20: Address by Jim Minto, CEO TOWER Australia
TOWER Limited AGM February 2005 Address by Jim Minto, Chief Executive Officer TOWER Australia Ltd and appointed to be TOWER Group, Chief Executive Officer from 1 March 2005. Ladies and Gentlemen Firstly can | take this opportunity to recognise the contribution Keith Taylor has made. The turnaround f
Slide 21: Over the next year special focus in Australia
This has been successful to this point Over the next year special focus in Australia will be on Accelerating sales growth through current channels Opening up new sales channels through alliances and partnerships Building our investment business Improving our processes, internal control and complianc
Slide 22: Closing remarks and thanks
No doubt other opportunities will come and we will look at those to see how value growth can be accelerated. Good opportunities certainly can complement a strong organic growth strategy if carefully thought through, planned and implemented. Ladies and Gentlemen Thank you for your support of TOWER. |