Suncorp Group Limited · ASX:SUN
Suncorp — Investor Day (May 2016)
26 slides from Suncorp's investor day presentation, May 25, 2016
Slide 1: Suncorp Group Investor Day
ASX announcement 25 May 2016 For personal use only SUNCORP GROUP INVESTOR DAY Suncorp today is hosting its annual Investor Day in Sydney. Attached for immediate release are the presentation materials. The event will be webcast from 9.15am at www.suncorpgroup.com.au. A recording of the webcast will b
Slide 2: Agenda
Create a better today For personal use only Investor Day I 25 May 2016 Agenda Speaker Michael Cameron – Introduction Mark Reinke – Customer experience Morning Tea Gary Dransfield – Customer platforms Amanda Revis – People experience and interview with Trov and 9 Spokes CEOs Steve Johnston – Financia
Slide 3: Strategy: Create a better today
Create a better today For personal use only Michael Cameron, Managing Director & Group Chief Executive Officer Strategy Create a better today Purpose ‘One Suncorp’ Business model Customer Strategy Capital Cost Culture Resilience Priority 4
Slide 4: Good progress with working claims; business in good shape
Good progress being made with working claims For personal use only Home active claim volumes (‘000) Motor repairs 70 50% 60 45% 50 40% 40 35% 30 30% 20 25% 10 20% 15% Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 (MTD) (QTD) Working Claims Natura
Slide 5: Operating model to deliver 'One Suncorp'
Operating model to deliver ‘One Suncorp’ For personal use only Suncorp’s ‘customer outcomes’ approach Our new operating model 7 Strategy » Simplification created strong foundations » Market conditions – increased competition, regulatory and political uncertainty and low yields » Rise of Fintech is u
Slide 6: Strategy evolution and priorities
Strategy For personal use only » Shift to creating value for the customer (non-price value) » Reorientated from product to customer outcomes based operating model » Customer platform providing: Easy access and navigation Wide range of products and services Evolution 9 Strategy » Maintain momentu
Slide 7: Strategy outcomes and ability to execute
Strategy For personal use only » Increasing Connected Customers: Meeting more customer needs Helping navigate complexity and make better choices Interact digitally and physically Integrated third party components » Retention and growth » 10% ROE Outcomes 11 Ability to execute the strategy »
Slide 8: Ability to execute the strategy; Suncorp's marketplace
Ability to execute the strategy For personal use only » History of innovation and execution » Customer and marketplace strategy embraced by employees » Already have platforms e.g. Shannons / APIA » Aligned operating model around the customer » Low risk - doesn’t require large investment program 13 S
Slide 9: Customer Experience
Examples Visualisation showing customer journeys For personal use only 15 Customer Experience Mark Reinke, Chief Customer Experience Officer
Slide 10: Growing customer connections
Creating a better today Growing customer connections For personal use only Our strengths: Customers want: 9 million customers To make informed decisions Trusted brands Simple and easy Simplified systems Trust Strong intermediary Control partnerships Sustainable organic growth 17 Connected Customers
Slide 11: Connecting customers creates value
Connecting customers creates value Significant growth opportunity For personal use only Meeting more needs >60% 4x 4x + NPAT/ NPAT/ Customer Customer % of customers >30% <5% <1% 1 2 3 4 Needs met 19 Our strategy to grow Connected Customers Customer Marketplace Experience Brands Deep insights Curate
Slide 12: Adopting a marketplace approach
Adopting a marketplace approach For personal use only + » Engaging customers through omni-channel » Curating solutions that customers care about + + Needs » Enabling customers to navigate and make informed decisions + 21 Reinventing and improving customer journeys Complex and disconnected Simplified
Slide 13: Seamless connected experiences
Seamless connected experiences For personal use only Collect & Select + Present + + Needs + + + Part of Suncorp Group Part of Suncorp Group Part of Suncorp Group Everything in one place Aggregated information Decision tools Access to solutions 23 Investor Day Showcases AAMI Hub Making informed On de
Slide 14: Customer Platforms
Morning Tea For personal use only Webcast will resume at 11.10am AEST Customer Platforms Gary Dransfield, Chief Executive Officer, Customer Platforms
Slide 15: AAMI marketplace of useful services
AAMI marketplace of useful services For personal use only People like me My goals Solutions + + + + Easy to navigate Home Self Mobility Money Help me buy Help me get covered Help me buy Getting started Useful solutions Help me protect Help me stay healthy Help me protect See my performance & service
Slide 16: New tools to help SME customers
New tools to help our SME customers navigate through complexity For personal use only Suncorp SME dashboard powered by Easy to Cash flow Protection Operations Customer People navigate Help me manage Help me manage Help me manage Reward my Manage service my business assets jobs customers delivery Use
Slide 17: Everyday services – pathway to paid
Everyday services – pathway to paid For personal use only Free Paid Catalogue Protect Intelligence Choices 31 A new approach to delivering value for customers Present Going forward Product line distribution model Omni-channel model Digital Product Product Product Line Line Line Direct Intermediaries
Slide 18: Suncorp store
Suncorp store For personal use only 33 Enabled by business model, data and technology Customer centric business model » Holistic approach to customer » Omni-channel » Culture Manufacturing excellence » Efficient manufacturing units » Product management and development » Balance sheet strength Techno
Slide 19: Modern technology stack, innovative culture
Modern technology stack, innovative culture For personal use only Simplified Systems Banking & Wealth, Insurance & New Zealand Optimised Platform, API layer, Customer Systems & Platforms Business Intelligence Data Lake Cloud Cloud Environment People and Culture Service Culture and Innovation & Conne
Slide 20: People Experience
People Experience For personal use only Amanda Revis, Chief People Experience Officer “ “ “Culture eats strategy for breakfast, lunch and dinner.” Peter Drucker Partners 38
Slide 21: Culture and confidence for the next phase
“ “ For personal use only “Culture eats strategy for breakfast, lunch and dinner.” Peter Drucker “ “ “I came to see, in my time at IBM, that culture isn’t just one aspect of the game – it is the game. In the end, an organisation has nothing Partners more than the collective capacity of its people to
Slide 22: Partnering Panel
Partnering Panel For personal use only Mr Scott Walchek Mr Mark Estall Founder and Founder and CEO Trov CEO 9 Spokes 41 Financial implications Steve Johnston, Chief Financial Officer
Slide 23: New operating model
New operating model A management structure to deliver a ‘One Suncorp’ approach For personal use only » ‘Elevate the Customer’ building on transformational projects » Centralised Customer Experience and Customer Platforms functions » Streamlined corporate functions » Restructuring completed by end of
Slide 24: Medium term targets
Medium term targets For personal use only » Broadening of customer relationships » Cost base flat in FY17 and FY18 » Improving underlying NPAT » Sustainable ROE of at least 10%, which implies an underlying ITR of at least 12% » Maintaining a dividend payout ratio of 60% to 80% of cash earnings » Ret
Slide 25: Key points
Key points For personal use only » Business is well positioned » We’re building a financial services Marketplace » Creating value for Connected Customers » A ‘One Suncorp’ approach » Creating a better today for everyone 47 Thank you
Slide 26: Create a better today
Create a better today For personal use only For our Customers For our Shareholders For our People For our Communities For our Industry For our Economy Customers with solutions A resilient business that Our people are inspired We are an integral part of Our clear focus on providing A stable company t