Permanent Tsb Group Holdings Plc · EURONEXT:PTSB
Permanent Tsb — Irish Life & Permanent — Davy Irish Equity Market Conference 2005
30 slides from Permanent Tsb's conference presentation, May 2005
Slide 1: Irish Life Retail
Davy Irish Equity Market Conference, London May 2005 Irish Life Retail Denis Casey, Chief Executive
Slide 2: Agenda
AGENDA n Mission n Business Model - Distribution & Products n Market Overview n Business Priorities Ø Superior Sales Growth Ø Margin & Costs - Horizon Programme Ø Customer Satisfaction 2
Slide 3: Mission
Mission : “To build a World Class life and pensions company that delivers outstanding products and service to customers and achieves superior growth and returns for its shareholders”
Slide 4: Multi-Channel Distribution
Multi-Channel Distribution CHANNEL DIRECT BUSINESS BANCASSURANCE IFAs / BROKERS PARTNERSHIPS Size 250 Advisers 100 ptsb branches 1,000 brokers - Credit Institutions 130 Franchises 70 Consultants multi agents & 400 Branch Staff authorised advisers Market Broad middle market ptsb customers Mass afflue
Slide 5: Changing Distribution Mix
Changing Distribution Mix 2004 28% 31% 32% 9% 2003 26% 32% 32% 10% 2002 25% 35% 31% 9% 2001 29% 29% 33% 9% 2000 26% 18% 45% 9% 1999 26% 16% 42% 16% Direct Bancassurance IFAs Partnerships 5
Slide 6: Multi-Product Range
Multi-Product Range PROTECTION PROTECTION INVESTMENT INVESTMENT GUARANTEED Trackers - Life & Serious Illness Cover - Mortgage Protection Unit-linked Bonds - Term Insurance - Index tracking - Active REVIEWABLE Commercial Property - Life & Serious Illness Cover Guaranteed Growth Bonds - Unit Linked Wh
Slide 7: Flexible Product Range
Flexible Product Range 2004 21% 26% 42% 11% 2003 23% 36% 35% 6% 2002 13% 22% 22% 43% 2001 14% 28% 24% 34% 2000 17% 42% 26% 15% Protection Investment Pension Savings 7
Slide 8: Irish Life Retail Market Share
Irish Life Retail Market Share €m % 300 22 20.8 21 20 200 19.7 19 18.6 18 17.6 17.6 100 17 16 15.7 0 15 1999 2000 2001 2002 2003 2004 Retail sales Retail market share 8
Slide 9: Market Overview - Drivers
Market Overview - Drivers n Positive operating environment supports growth Demographics Economy Pensions Low Interest Rates 9
Slide 10: Ireland's Population Structure
Ireland’s Population Structure 90-94 75-79 60-64 Demographic AGE 45-49 Dividend 30-34 15-19 0-4 0 100000 200000 300000 400000 10
Slide 11: Strong Economy Creating Profits & Wealth
Strong Economy Creating Profits & Wealth n 5% GDP growth over medium term achievable n Full employment n High disposable incomes n Significant inherited wealth from asset appreciation n High levels of consumer confidence 11
Slide 12: Pensions
Pensions n 50% of Irish workers have no pension n Annual savings gap estimated at €6 billion* n Equates to €3,300 per worker per annum n Growing public awareness n SSIA reinvestment opportunity ?? * Source : Life Strategies Actuarial Consultants - April 2004 12
Slide 13: Pensions
Pensions n Strong public policy support for Private Pension funding n Policy objective to increase coverage from 50% to 70% Generous Tax Breaks ARF Initiative PRSA Initiative Age % of Earnings • Freedom to recapture • Low cost simple pension fund at pension Up to 30 15% retirement 30 to 40 20% • Man
Slide 14: Low Interest Rates
Low Interest Rates n Now a permanent feature of Irish economy n A headache for savers n Traditional deposits not providing a real rate of return n Shift to broader range of investment products inevitable n But low level of customer confidence in equities 14
Slide 15: Market Overview - Trends
Market Overview - Trends n The rise of Bancassurance Ø Now 40% of Retail market n Consolidation Ø Top 4 control 67% of Retail market Ø Top 2 control 45% n Margin Pressure Ø Price capped pensions (PRSA) Ø Competition Ø Consumer / media pressure 15
Slide 16: Market Shares
Market Shares* Company Retail Retail & Distribution Method Share Corporate Share Irish Life 20.8% 24.6% Bancassurance IFA DSF BoI Life 25.0% 23.5% Bancassurance IFA DSF Ark Life 11.3% 8.6% Bancassurance Hibernian (Aviva) 10.2% 10.6% IFA Eagle Star (Zurich) 7.8% 8.0% IFA Canada Life 6.8% 6.3% IFA DSF
Slide 17: Key Goals / Objectives
Key Goals / Objectives n Superior sales growth n Horizon Programme completion n Customer satisfaction 17
Slide 18: Sales Growth - Distribution
Sales Growth - Distribution n Strong Sales performance by all channels in 2004 - sales up 17% n On track to achieve 22% market share objective Bancassurance Bancassurance Salesforce Salesforce IFAs/Brokers IFAs/Brokers • Focus on pensions • Transitioned into • Franchise numbers • Winning in key high
Slide 19: Sales Growth - Pensions
Sales Growth - Pensions Pensions - the Irish Life traditionally Key 3 Year Plan growth engine for underweight in Retail Objective to better the life assurance pensions position our business to market exploit this opportunity n Significant progress in 2004 Ø Pensions our biggest product (42%) for fir
Slide 20: Horizon Programme
Programme Radical Business transformation programme Initiated in 2002 to create a world class life assurer n Drive significant productivity increases in every business activity n Improve service experience for customers n Protect new business profitability as product margins fall n Instal a leading
Slide 21: Life Sales & Margins
Life Sales & Margins €m % 400 20 18.6 300 16.1 15.6 15 13.8 13.0 200 10 100 0 5 2000 2001 2002 2003 2004 Retail Corporate ILI Life Margin * excl ILIM sales 21
Slide 22: Platform
Platform Siebel - Electronic Sales Process • Professional consultation replaces traditional sales process • Consistent & compliant advice • Collects rich customer data • Fully integrated with Call Centre ePOS - Point of Sale Fullfilment • High quality service experience • Avoids adviser down time ch
Slide 23: Horizon Completion Costs
Completion €m 150 n Cost performance in line with goals 140 n 2004 costs lower than 2003 n Renewal cost savings to repay programme costs Costs 130 n New business margins benefit from lower costs 120 110 2002 2003 2004 2005 2006 2002 costs inflated at 5% pa 3 Year Plan Costs Commitment to Horizon Pha
Slide 24: Customer Satisfaction
Customer Satisfaction n Intouch initiative launched in 2004 n Staff Profit Share linked to improvements in customer satisfaction n Major annual research exercise to measure customer satisfaction levels n Excellent progress in 2004 Make CUSTOMER SATISFACTION an Obsession for all Retail staff 24
Slide 25: 2003 Customer Satisfaction Scores
2003 Customer Satisfaction Scores 4 5 6 7 8 9 10 The quality of advice given by your financial adviser Your financial adviser keeps promises and commitments The value for money of your product The product knowledge of your financial adviser Effective handling of problems Effective handling of enquir
Slide 26: 2003 Satisfaction Index
2003 Satisfaction Index keeping... I ni uch
Slide 27: 2004 Intouch Actions
2004 Intouch Actions n Engagement Workshop sessions for all staff to launch initiative n Local Intouch champions appointed n Honesty Mark secured for key product literature n Significant customer service training undertaken n 100 service improvement “hops” achieved 27
Slide 28: Satisfaction Index
Satisfaction Index 2003 72.9% 28
Slide 29: Summary
Summary Positive Operating Environment Unrivalled Array of high performing distribution channels World Class technology and processes Leading position in a consolidating market Proven ability to execute and drive change Strategic Focus on Customer Satisfaction A Winning Proposition ! 29
Slide 30: Further information and investor relations contact
A copy of this presentation, the 2004 annual report and other financial information are available on our group website www.irishlifepermanent.ie For further information, please contact: Barry Walsh Head of Investor Relations Tel: +353 1 704 2678 Email: investor.relations@irishlife.ie 30
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