Hansard Global Plc · LSE:HSD
Hansard Global — FY2019 Earnings Presentation
24 slides from Hansard Global's earnings presentation, 2019
Slide 1: Results for the year ended 30 June 2019
R E S U LT S F O R T H E Y E A R ENDED 30 JUNE 2019
Slide 2: Disclaimer
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: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy 2018/2019 1
Slide 4: Overview FY 2019
OV E RV I E W FY 2019 Assets under New Business of IFRS profit Value of In-Force of Administration £155.9m PVNBP of £4.6m £139.9m of £1.08bn (2018: £146.6m) (2018: £6.8m) (2018: £141.6m) (2018: £1.04bn) UAE strategic alliance Hansard Worldwide Japanese licence Final dividend of delivering significan
Slide 5: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy 2018/2019 3
Slide 6: Implementing our growth strategy
IMPLEMENTING OUR G RO W T H S T R AT E G Y 12 month commitments from this point last year Roll-out of new Conclusion of non- Rationalisation IoM Regulatory Complete Cost efficiency Conclude Japanese Group insurance Italian litigation and of our broker Roadmap regional office target of £500k p.a. lic
Slide 7: Implementing our growth strategy
IMPLEMENTING OUR G RO W T H S T R AT E G Y SHORT TERM (WITHIN 12 MONTHS) MEDIUM TERM (12-24 MONTHS) LONG TERM (24+ MONTHS) • Japanese proposition to be launched • Expansion of Japanese • Extension of Japan-style with first distribution partner in H2 proposition to additional proposition, globally. F
Slide 8: Japan: The opportunity
J A PA N T H E O P P O RT U N I T Y T H E M A R K E T Trend away from low Regulatory Onshore accumulation $9 trillion in cash, no return traditional life Landscape changing- Banks control savings market forecast to interest, negative real insurance policies Banks voluntary 54% of reach $14.5 trillio
Slide 9: Japan: Route to launch
J A PA N ROUTE TO LAUNCH BUILDING BLOCKS IN PLACE ROUTE TO LAUNCH POST LAUNCH BUILD • Investment management licence acquired in June 2019. • Regulatory sign-off of new • Additional distribution • Registration statement filed to place back-book within the product targeted prior to end agreements with
Slide 10: Building new business
BUILDING NEW BUSINESS New Business through our locally licensed partner in the UAE continued to grow over 2019. Due to repositioning towards locally licensed business in the Far East, new business fell in 2019. Work on Japanese 2019 PVNBP distribution agreements well advanced. Latin American new bus
Slide 11: UAE: Building new business
UAE BUILDING NEW BUSINESS • New Business 2019 more than doubled year on year • Reputation growing rapidly in the UAE • Online New Business approach is highly valued by distributors • Relationship with our strategic partner is going extremely well • Further developments planned for 2020 9
Slide 12: Hansard Europe litigation
H A N S A R D E U RO P E L I T I G AT I O N Group action in Italy related to illiquid assets continues to grow, but strong claim for insurance coverage (including legal costs) Large case in Belgium on-hold pending separate third- party Supreme Court case regarding statute of limitations. Have initia
Slide 13: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy 2018/2019 11
Slide 14: Results FY 2019
R E S U LT S FY 2019 Summary Results FY 2019 FY 2018 New business sales – PVNBP £155.9m £146.6m New business margin (0.6 %) (0.7 %) IFRS profit after tax £4.6m £6.8m Underlying IFRS profit £6.1m £8.6m Operating cash surplus £20.6m £25.0m Assets Under Administration £1,080m £1,036m Value of In-Force
Slide 15: Results FY 2019: New business
R E S U LT S FY 2019 New Business FY 2019 FY 2018 Present Value of New Business Premiums £m £m Strategic partnership in UAE is driving Regular premiums 85.5 70.2 regular premium growth. Single premium 70.4 76.4 PVNBP 155.9 146.6 Annual Premium Equivalent (“APE”) 24.7 22.4 Additional scale and expens
Slide 16: Assets under administration
R E S U LT S FY 2019 Assets under Administration 5 year trend 1200 Global markets recovered in H2 2019 1000 to offset declines in H1. 966 800 878 913 AuA £M Hansard Europe closed 600 749 to new business in 700 2013. 400 200 207 174 171 0 123 114 2015 2016 2017 2018 2019 Year Hansard International Ha
Slide 17: Cash flows
R E S U LT S FY 2019 Cash Flows FY 2019 FY 2018 £m £m Operating cash surplus Operating cash surplus 20.6 25.0 in year ended 30 June Interest and other income 1.4 1.3 30 25 20.9 Cash inflow 22.0 26.3 20 Investment in new business (17.5) (18.5) £m 15 Capital expenditure (2.5) (0.9) 10 5 Net Cash inflo
Slide 18: Available cash
R E S U LT S FY 2019 Available Cash Shareholder cash balances at 30 June FY 2019 FY 2018 90 £m £m 80 70 65.3 60 50 Total Group cash and deposit balances 65.3 69.4 £m 40 30 Less net shareholder payables (4.1) (3.9) 20 10 Less policyholder claims payable (24.2) (23.7) 0 2015 2016 2017 2018 2019 Less c
Slide 19: IFRS abridged income statement
R E S U LT S FY 2019 IFRS - Abridged income statement FY 2019 FY 2018 £m £m Fee income reduced due Fees and commissions to: - HI: lower income - Hansard International 39.9 42.4 amortisation from prior years (see offset in - Hansard Europe 3.9 4.8 origination costs) and lower surrender charge 43.8 47
Slide 20: IFRS abridged balance sheet
R E S U LT S FY 2019 IFRS - Abridged balance sheet FY 2019 FY 2018 £m £m Deferred origination costs 118.0 113.8 Other assets 10.1 8.0 Shareholder cash and bank deposits 65.3 69.4 Total assets 193.4 191.2 Deferred income 133.2 130.3 Other payables 33.0 32.4 166.2 162.7 Net assets 27.2 28.5 Shareholde
Slide 21: Own Funds
R E S U LT S FY 2019 Own Funds Value of in-force has Own Funds Own Funds EEV been relatively stable, FY 2019 FY 2018 FY 2018 supported by positive investment and foreign £m £m £m exchange factors. Risk margin under SII / Value of In-Force 139.9 141.6 143.9 IoM RBC incorporates a much higher cost of
Slide 22: Change in risk based solvency surplus
R E S U LT S FY 2019 Change in Risk Based Solvency Surplus Primary item negatively impacting operating FY 2019 experience was a reduced outlook for £m treasury margins due to long term low interest Operating experience (4.3) rates. Investment performance 2.3 Main assumption Foreign exchange 2.7 chan
Slide 23: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy 2018/2019 21
Slide 24: Summary
S U M M A RY IFRS IFRS profit of £4.6m Year-on-year new business Japanese licence (2018: £6.8m) growth driven by success with acquired locally-licensed UAE distribution 2.65p Upgrading systems to Positive progress with Level dividend of achieve significant cost litigation rulings and 2.65p per share