Hansard Global Plc · LSE:HSD
Hansard Global — H1 2019/20 Earnings Presentation
21 slides from Hansard Global's earnings presentation, 2019
Slide 1: Half Year Results 2019/20
© HANSARD GLOBAL PLC HALF YEAR RESULTS 2019/20
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 HY 19/2020 1
Slide 4: Overview
OV E RV I E W Assets under New Business of IFRS profit Administration £80.1m PVNBP of £2.6m of £1.08bn (H1 2019: £74.1m) (H1 2019: £3.0m) (30/06/19: £1.08bn) Japan operational model New administration Interim dividend of progressing through system on-track for 1.8p per share sign-off process with Ja
Slide 5: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy HY 19/2020 3
Slide 6: 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 proposition to additional proposition, globally • Ration
Slide 7: 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 • First distribution agreement • Additional distribution • Registration statement filed to place back-book within the with regional bank targeted for agreements w
Slide 8: Building New Business
BUILDING NEW BUSINESS New Business in the Middle East & Africa continued to grow Impact of changes to regulation in UAE being managed Due to repositioning towards locally licensed business in the H1 20 v H1 19 Far East, new business continued to fall in 2020 PVNBP Latin American new business regaine
Slide 9: Latin America Building New Business
L AT I N A M E R I C A BUILDING NEW BUSINESS • New Business H1 2020 grew by over 50% • HWL enthusiastically received by supporting advisors • International Investment Award • Reputation continues to grow in the region • More sales resource added to further support growth • Online New Business servic
Slide 10: 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, however expected to be substantially covered by insurance. First payment on account of legal costs received in H1 2020. Large case in Belgium on-hold pending separate third- party Supreme
Slide 11: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy HY 19/2020 9
Slide 12: Results H1 2019/20
R E S U LT S H1 2019/20 Summary Results H1 2020 H1 2019 New business sales – PVNBP £80.1m £74.1m IFRS profit after tax £2.6m £3.0m Operating cash surplus £11.1m £9.5m Assets Under Administration £1,080m £976m Value of In-Force 1 135.7m 134.5m Interim dividend per share 1.8p 1.8p 1 Regulatory (solven
Slide 13: Results H1 2019/20: New Business
R E S U LT S H1 2019/20 New Business H1 2020 H1 2019 Present Value of New Business Premiums £m £m Strong sales in LatAm and UAE. Regular premiums 51.6 37.4 Focus on regular Single premium 28.5 36.7 premiums. PVNBP 80.1 74.1 Plan to address the improvement of new business margins via: Annual Premium
Slide 14: Results H1 2019/20: 5 year trend
R E S U LT S H1 2019/20 Assets under Administration 5 year trend 1200 Hansard International 1000 continues upward 975 trend 800 927 866 AuA £M 827 Hansard Europe closed 600 682 to new business in 2013. 400 200 0 174 174 160 110 105 2015 2016 2017 2018 2019 Year Hansard International Hansard Europe 1
Slide 15: Results H1 2019/20: Cash Flows
R E S U LT S H1 2019/20 Cash Flows H1 2020 H1 2019 £m £m Operating cash surplus HY Operating cash surplus 11.1 9.5 ended 31 December 14 Interest and other income 0.5 0.6 11.1 12 Cash inflow from operations 11.6 10.1 10 8 Investment in new business (10.2) (8.7) £m 6 Capital expenditure (1.5) (0.8) 4
Slide 16: Results H1 2019/20: Available Cash
R E S U LT S H1 2019/20 Available Cash Shareholder cash surplus HY ended 31 December H1 2020 H1 2019 90 £m £m 80 70 59.9 60 50 Total Group cash and deposit balances 59.9 63.5 £m 40 30 Less net shareholder payables (3.6) (1.9) 20 10 Less policyholder claims payable (23.4) (21.7) 0 2015 2016 2017 2018
Slide 17: IFRS Abridged Income Statement
R E S U LT S H1 2019/20 IFRS - Abridged income statement H1 2020 H1 2019 £m £m Increased HI business Fees and commissions levels leading to higher fee income and higher - Hansard International 21.2 20.7 origination costs. - Hansard Europe 1.8 2.0 HE continues to run-off its business having closed 23
Slide 18: IFRS Abridged Balance Sheet
R E S U LT S H1 2019/20 IFRS - Abridged balance sheet H1 2020 H1 2019 £m £m Deferred origination costs 120.8 115.4 Other assets 13.5 11.3 Shareholder cash and bank deposits 59.9 63.5 Total assets 194.2 190.2 Deferred income 135.1 131.9 Other payables 32.8 30.4 167.9 162.3 Net assets 26.3 27.9 Shareh
Slide 19: Own Funds
R E S U LT S H1 2019/20 Own Funds Own Funds Own Funds Value of in-force has H1 2020 H1 2019 been relatively stable, with new business and £m £m investment gains offset by foreign exchange movements. Value of In-Force 135.7 134.5 Net Worth incorporates Risk Margin (22.2) (21.0) probabilistic outcomes
Slide 20: Agenda
AGENDA Introduction Our Business Results Summary & Overview Strategy HY 19/2020 18
Slide 21: Summary
S U M M A RY IFRS New business growth driven IFRS profit of £2.6m Japan development by successful initiatives in (2019: £3.0m) progressing steadily LatAm and UAE 1.8p Upgrading systems to Expanding Hansard Europe Level dividend of achieve significant cost litigation in Italy mitigated 1.8p per share