Slide 1: Welcome - Half Year Results 2017/18
WELCOME H A L F Y E A R R E S U L T S 2 0 1 7 / 1 8 1
Slide 2: Disclaimer and forward-looking statements
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: Presenters: Gordon Marr, Tim Davies, Graham Morrall
Gordon Marr Tim Davies Graham Morrall Global Sales & Chief Executive Officer Chief Financial Officer Marketing Director 3
Slide 4: Agenda
AGENDA Introduction & Overview Our Business Strategy Results H1 2018 New Business Summary Questions 4
Slide 5: Highlights
HIGHLIGHTS New Business of IFRS profit New business Value of future £77.1m PVNBP of £3.5m margin of 0.1% profits of £148.2m (H1 2017: 74.9m) (H1 2017: £4.4m) (H1 2017: 1.3%) (H1 2017: £145.9m) Assets under Union Insurance Interim dividend of Administration strategic alliance Increasing licensed 1.8p
Slide 6: Agenda
AGENDA Introduction & Overview Our Business Strategy Results H1 2018 New Business Summary Questions 6
Slide 7: Our Business Strategy
lour BUSINESS STRATEGY @ HANSARD GLOBAL PLC - _| To be the preferred choice of distributors when recommending international savings and investment products to their clients
Slide 8: Strategic Objectives
| stRATEGIC OBJECTIVES © HANSARD GLOBAL PLC More long-term relationships eas Better value for Customers with distributors = MS MS eee Amore visible profile in the Excellent customer service market “S Market leading online Motivated & engaged systems workforce
Slide 9: Strategic Management Focus
STRATEGIC MANAGEMENT FOCUS • • Capitalise on near term strategic opportunities Ensure the Group is correctly positioned for future regulatory developments and change • Consider and plan for longer term industry and technological evolution 9
Slide 10: Hansard Europe & Japan
HANSARD EUROPE & JAPAN HANSARD • EUROPE Outstanding litigation down €0.5m from date of full year results to €16.4m • Two further cases won in Belgium in 2018 (totalling €1m) • Largest case in Belgium recently concluded with judgement expected by year-end • Additional activity in Italy JAPAN • Positi
Slide 11: Agenda
AGENDA Introduction & Overview Our Business Strategy Results H1 2018 New Business Summary Questions 11
Slide 12: Results - H1 2018 Summary Results
RESULTS - H1 2018 Summary Results H1 2018 H1 2017 New business sales – PVNBP £77.1m £74.9m New business margin 0.1% 1.3% Operating cash surplus £8.3m £9.3m IFRS profit after tax £3.5m £4.4m EEV operating loss after tax (£1.9m) (£2.4m) EEV profit after tax £3.9m £8.5m European Embedded Value £192m £1
Slide 13: Results - H1 2018 New Business
RESULTS - H1 2018 New Business H1 2018 H1 2017 Present Value of New Business Premiums £m £m Sales up, driven by Regular premiums 37.9 42.6 single premium growth Single premium 39.1 32.3 PVNBP 77.0 74.9 New business margin reduced due to: Annual Premium Equivalent (“APE”) 12.1 11.7 ⁞ higher level of
Slide 14: Results - H1 2018 Assets under Administration
RESULTS - H1 2018 Assets under Administration development HI and HE AuA 5 year trend HI HE HI: AuA reflecting 1000 increased new 900 800 927 business and 700 827 positive stock 600 726 701 682 market AuA £M 500 400 300 HE: Decline after 200 260 223 closure to new 100 174 174 160 business in 2013 0 2
Slide 15: Results - H1 2018 Cash Flows
RESULTS - H1 2018 Cash Flows Operating cash surplus in period to 31 December (£m) H1 2018 H1 2017 20.0 £m £m 15.0 Operating cash surplus 8.3 9.3 10.0 8.3 Interest and other income 0.5 0.4 5.0 Cash inflow 8.8 9.7 0.0 Investment in new business (9.1) (8.7) Capital expenditure (0.4) (0.3) Net Cash infl
Slide 16: Results - H1 2018 Free Cash
RESULTS - H1 2018 Free Cash H1 2018 H1 2017 £m £m Headline cash Total Group cash + deposit balances 66.2 71.8 balance is allocated Net shareholder payables (1.1) (1.4) to a number of constituents before Policyholder claims payable (23.8) (21.8) true free cash can Minimum regulatory capital of Hansar
Slide 17: Reduction in Dividend
RESULTS - H1 2018 Reduction in Dividend ⁞ The Board is implementing the 50% dividend reduction which was highlighted this time last year. ⁞ The key dynamics for the reduction remain: ⁞ Continuing positive growth in new business which has an upfront cash strain; ⁞ Significant amount of incremental ne
Slide 18: IFRS - Abridged income statement
RESULTS - H1 2018 IFRS – Abridged income statement H1 2018 H1 2017 £m £m Fees and commissions Fee income declining as HE book reduces - Hansard International 20.8 21.3 and lower initial fees - Hansard Europe 2.4 3.1 in HI 23.2 24.4 Investment and other income 0.5 0.9 Administrative expenses up due t
Slide 19: IFRS - Abridged balance sheet
RESULTS - H1 2018 IFRS – Abridged balance sheet Deferred Origination Costs at 31 December (£m) H1 2018 H1 2017 135 £m £m 130 125 Deferred origination costs 113.3 111.3 120 113.3 115 Other assets 10.5 8.6 110 105 Shareholder cash and bank deposits 66.2 71.8 100 Total assets 190.0 191.7 Deferred incom
Slide 20: EEV - balance sheet
RESULTS - H1 2018 EEV – balance sheet EEV balance sheet H1 2018 H1 2017 as at 31 December (£m) £m £m VIF Net Worth 250 Free surplus 16.3 23.2 200 Required capital 27.7 28.0 150 100 Net worth 44.0 51.2 50 0 13 14 15 16 17 Value of future profits 148.2 145.9 European embedded value 192.2 197.1 EEV per
Slide 21: EEV return after taxation
RESULTS - H1 2018 EEV return after taxation H1 2018 H1 2017 New business £m £m contribution affected by New business contribution 0.1 1.0 increased strategic Expected return 0.4 0.4 and business development costs. Experience variances (1.8) (1.8) Experience Assumptions and other changes (0.6) (2.0)
Slide 22: Agenda
AGENDA Introduction & Overview Our Business Strategy Results H1 2018 New Business Summary Questions 22
Slide 23: H1 2018 PVNBP Key distribution
H1 - 2018 PVNBP Union Insurance strategic alliance providing material contribution to 3.0% new business Continued Digital Promotion Activities REGIONAL REVIEWS Key distribution agreements 23
Slide 24: Long-term Relationships
LONG-TERM RELATIONSHIPS New Business received from all Top 20 Distributors accounted for 69% Distributors worldwide, of which… of H1 2018 Production, of which… Asia RoW 19% 9% “The top 20 32% 39% distributors accounted for 69% of production” Lat Am Middle East 20% 17% 29% 35% 24
Slide 25: Regional New Business Growth
REGIONAL NEW BUSINESS GROWTH RoW +18.3% Asia -0.6 % Latin America Middle East & Africa +57.3% -32.1% 25
Slide 26: Improved Proposition
IMPROVED PROPOSITION PRODUCTS Revised version of CB2 launched with tiered allocation rates to increase average case size Strategic broker partnerships developed in Malaysia Union business gathering momentum INVESTMENTS • A number of funds added to the internal range on request of major distrib
Slide 27: Promotional Activity
The direction of travel ® ernnag HANSARO ‘Sonate te ropon sonpd ter duty dente esta ‘votre ba Sec osne Hansard Intemational we dedicate lots of our time to develop (what we think) is the best online platform in our industry! We like to think of Hansard Online as being rather awesome, So 400, it appe
Slide 28: Industry Recognition
INDUSTRY RECOGNITION **HANSARD ISA LEADERIN... **HANSARD ISA LEADER IN... BUSINESS ' MAKING PROCESSING ADVISERS & DIGITAL = DEVELOPMENT” Ss FIT FOR FUTURE” HANSARD INTERNATIONAL HANSARD ISA LEADER IN... DIGITAL AND E-BASED DEVELOPMENTS © HANSARD INTERNATIONAL 28
Slide 29: Agenda
AGENDA Introduction & Overview Our Business Strategy Results H1 2018 New Business Summary Questions 29
Slide 30: Summary
SUMMARY POSITIVE OUTLOOK New Business (PVNBP) of £77.1m (H1 2017: 74.9m) Value of future profits of £148.2m (H1 2017: £145.9m) Assets under Administration of £1.09bn (June 2017: £1.05bn) Positive outlook for growth 30
Slide 31: Hansard Global plc
© HANSARD GLOBAL PLC