Slide 1: NN Group 2016 Annual Report: 'Securing Financial Futures'
NN Group 2016 Annual Report ‘Securing Financial Futures’ Lard Friese, CEO NN Group Annual General Meeting - The Hague, 1 June 2017 1
Slide 2: Welcome on behalf of the Management Board
Welcome on behalf of the Management Board Lard Friese * Jan-Hendrik Erasmus Chief Executive Officer (CEO) Chief Risk Officer and global IT Delfin Rueda * Robin Spencer Chief Financial Officer (CFO) CEO International Insurance David Knibbe Satish Bapat CEO Netherlands Insurance CEO NN Investment Part
Slide 3: The 2016 Annual Report provides an integrated review of the performance of our company
The 2016 Annual Report provides an integrated review of the performance of our company • In accordance with applicable Dutch law and IFRS, as well as with Global Reporting Initiative’s G4 guidelines (GRI) and the guidelines of the International Integrated Reporting Council (IIRC) • Aligns relevant i
Slide 4: Our key figures: financial highlights 2016
Our key figures: financial highlights 2016 Operating result Net result EUR 1,227m EUR 1,189m (2015: EUR 1,435m) (2015: EUR 1,565m) Net operating ROE Solvency ratio 8.1% 241% (2015: 10.8%) (2015: 239%) New sales life insurance NN IP Assets under Management EUR 1,386m EUR 195bn (2015: EUR 1,295m) (201
Slide 5: Our key figures: non-financial highlights 2016
Our key figures: non-financial highlights 2016 Net promoter score Assets under Management in SRI funds/mandates +2 points EUR 5bn (2015: +6 points) (2015: EUR 4.5bn) Employee engagement Donations to charitable organisations 71% EUR 1.5m (2015: 73%) (2015: EUR 1.5m) Young people reached via Future Ma
Slide 6: Strategy and value creation
Strategy and value creation 6
Slide 7: Executing on opportunities to create value
Executing on opportunities to create value July 2016 April 2017 Sale of Mandema & Partners • Agreement with Global Bankers Insurance Group on sale of May 2016 to Van Lanschot Chabot NN Group acquires NN Life Luxembourg Notus Financial • Offer for Delta Lloyd declared unconditional; start integration
Slide 8: The combination with Delta Lloyd is strategically and financially compelling
The combination with Delta Lloyd is strategically and financially compelling An improved customer proposition Doubling the size of the Non-life insurance Acceleration of the asset management within the Dutch pension market business strategy and increased scale Doubling the presence in Belgium Increa
Slide 9: Continued focus on delivering an excellent customer experience
Continued focus on delivering an excellent customer experience Transparent products and services Effective and efficient operations • NN Life launched roll-over pension product and service • NN Bank improved mortgage interest rate renewal process providing insight in your pension • NN Life closed bo
Slide 10: Some examples in the Dutch market
Some examples in the Dutch market All products Price Brand Quality available in NN App Prospects browsing on Nationale-Nederlanden website: customer segmentation - based on analytics 10
Slide 11: Examples from our international business and NN IP
Examples from our international business and NN IP Nationale-Nederlanden Spain’s concept To further support our agents in Japan, During the severe storm in Belgium in of a paperless sales process was we launched an intuitive service 2016, an NN Mobile Office was set up to introduced in Poland, Czech
Slide 12: Financial overview
Financial overview Qs 12
Slide 13: 2016 full-year results
2016 full-year results Operating result (EURm) Net result (EURm) -14% -24% 1,435 1,565 Other 1,227 Asset Management 1,189 Japan Life Insurance Europe Netherlands Non-life Netherlands Life FY15 FY16 FY15 FY16 13
Slide 14: Disciplined capital management
Disciplined capital management Solvency II ratio Cash capital at holding • Successful issue of EUR 500m of senior unsecured debt and 239% 241% 1,953 2,489 EUR 850m of subordinated debt in January 2017 • Proceeds used to repay existing debt 2015 2016 2015 2016 • Dual-tranche senior notes for a total
Slide 15: Delivering on our financial targets
Delivering on our financial targets Annual earnings1 Target Increase in ROE3 in Generate free cash available growth of 5-7% on administrative medium term (%) to shareholders in a range around average in the medium expense base in the net operating result of the term (EURm) the Netherlands2 of ongoin
Slide 16: Delivering on our dividend policy
Delivering on our dividend policy Sustainable and predictable dividends in line with Excess capital returned to shareholders, unless it can dividend policy be used for value creating corporate opportunities Interim dividend per share (EUR) • Capital generated in excess of NN Group’s Final dividend p
Slide 17: Development of the NN Group share price in 2016
Development of the NN Group share price in 2016 Total Shareholder Return • 2016 4.0% • IPO – 31 December 2016: 74.4% 17
Slide 18: Going forward
Going forward Qs 18
Slide 19: Highlights 1Q17
Highlights 1Q17 Operating result Net result • Operating result up 33%, driven by higher results in all segments EUR 406m EUR 435m • Further cost savings of EUR 14m in the (1Q16: EUR 305m) (1Q16: EUR 270m) Netherlands bringing expense base down to EUR 748m Net Operating ROE Holdco cash capital • Stro
Slide 20: Revised Dutch Corporate Governance Code
Revised Dutch Corporate Governance Code • On 8 December 2016, the revised Dutch Corporate Governance Code (Code) was published and presented to the Minister of Economic Affairs • Provided that the Code is embedded in the law in 2017, Dutch listed companies are obliged to report about their complianc
Slide 21: Wrap up
Wrap up 21
Slide 22: Executing on opportunities to create value
Executing on opportunities to create value • 2016 was an important year for NN Group; major steps taken to build a sustainable business for the future • Combination with Delta Lloyd is strategically and financially compelling • Priorities going forward: • Successfully integrate Delta Lloyd into the
Slide 23: Disclaimer
Disclaimer 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 on the Dutch Civil Code. In preparing the financial information in this document, the same accounting
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